HomeMy WebLinkAboutReso 81-20 Amend #2 Three Stacks BLARESOLUTION NO. 81-20
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA
APPROVING AMENDMENT #2 TO THE BUILDING LEASE AGREEMENT
FOR LEASE SITE 69-70/69W-70W BETWEEN THE CITY OF MORRO BAY
AND THREE STACKS AND A ROCK BREWING COMPANY, LLC
LOCATED AT 595 EMBARCADERO
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, the City of Morro Bay is the lessor of certain properties on the Morro
Bay Waterfront described as City Tidelands leases and properties; and
WHEREAS, on August 13, 2019, the City approved a new short-term Building
Lease Agreement with Three Stacks and a Rock Brewing Company ("Three Stacks") for
portions of the building at the Lease Site; and
WHEREAS, Three Stacks and the City are completing significant improvements
to enable Three Stacks to occupy and operate from the building on Lease Site 69-
70/69W-70W; and
WHEREAS, due to a myriad of impacts from the COVID-19 global pandemic, it is
necessary to extend the May 31, 2020, deadline for completion of the work necessary
for Three Stacks' occupancy to March 31, 2021; and
WHEREAS, the City and Three Stacks have agreed upon an extension to the
lease agreement deadline to complete the necessary improvements.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro
Bay, California, as follows:
1. The attached Amendment #2 to the Building Lease Agreement for Lease
Site 69-70/69W-70W is hereby approved.
2. The Mayor is hereby authorized to execute said Amendment.
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a
regular meeting thereof held on the 22' day of September, 2020 on the following votes
AYES* Headding, Addis, Davis, Heller, McPherson
NOES' None
ABSENT: None
Johor
ATTEST:
Dana Swanson, City Clerk
AMENDMENT #2 TO THE BUILDING LEASE AGREEMENT
FOR LEASE SITE 69-70/69W-70W,
LOCATED AT 595 EMBARCADERO
This Amendment ("Amendment #2") is made and entered into as of this c9 day of
2020, by and among the City of Morro Bay, a municipal corporation of the State of California,
whereinafter called "city," and Three Stacks and a Rock Brewing Company, LLC, a California
limited liability company, hereinafter called "Tenant." (Collectively, City and Tenant are
sometimes referred to herein as the "Parties.")
WHEREAS, effective August 8, 2019, City and Tenant entered into that certain Building Lease
(the "Lease");
WHEREAS, the parties amended the Lease, effective December 10, 2019, to extend certain
deadlines set forth in the Lease (Amendment #1);
WHEREAS, the Lease and Amendment #1 are hereinafter referred to as the Amended Lease;
WHEREAS the Parties have again agreed to amend the Amended Lease because, while
Tenant and City were pursuing their respective building improvement obligations under the
Amended Lease, the COVID-19 global pandemic caused significant delays and other issues,
necessitating a change in the timeline in which the improvements are to be completed because
more time is required to complete them.
NOW THEREFORE, Parties agree, as follows:
1. Section 2.2 of the Amended Lease is replaced in its entirety to read as follows:
2.2 Initial Term The term of this Lease shall commence upon Tenant receiving a
Certificate of Occupancy or Final Inspection, as applicable, for the improvements
satisfactorily completed pursuant to Section 3.3 of this Lease, but in no case later than
March 31, 2021 (the "Commencement Date"), for a fixed term of twelve full calendar
months after the Commencement Date (the "Initial Term"), and terminate without notice
at the end of the Initial Term, unless otherwise amended by the Parties pursuant to
Sections 2 4 and 29.14.
2 The first sentences in Sections 3.3.1 and 3.4.1 of the Amended Lease are amended
to read as -follows:
On or before March 31, 2021-
3. Except as expressly stated herein, all provisions of the Amended Lease shall remain
in full force and effect.
4. The effective date of this Amendment #2 is the date first written above.
IN WITNESS WHEREOF, the parties hereto have executed this Amendment ##2 as of the date
written above.
CITY OF MORRO BAY
By:
Joh Heayor
APPROVED AS TO FORM:
�nS Neo � b "
Chris F. Neumeyer, y Attor�y
ATTEST:
Ovtlytte,
na Swanson, City Clerk
Three Stacks and a Rock Brewing
Brewing Company, LLC
A California limited liability company
By:
es Nettnin, Managing Member