HomeMy WebLinkAboutReso 83-21 TLC Amendment #2 Redevelopment DeadlinesRESOLUTION NO. 83-21
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA
APPROVING AMENDMENT #2 TO THE MASTER LEASE AGREEMENT
FOR LEASE SITE 87-88/87W-88W, LOCATED AT 833 EMBARCADERO,
BETWEEN THE CITY OF MORRO BAY AND TLC FAMILY ENTERPRISES
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, TLC Family Enterprises (Cherise Hansson and Travis Leage) have
been the lessees of Lease Site 87-88/87W-88W since 2018, and are tenants in good
standing; and
WHEREAS, TLC Family Enterprises was granted approval of a new Master
Lease Agreement on December 11, 2018 for a proposed lease site redevelopment
project consisting of a complete site demolition and redevelopment of mixed restaurant,
retail and hotel use; and
WHEREAS, due to unforeseen circumstances necessitating a significant change
to Tenant's building plans, and to the continued social, economic and supply chain
effects of the COVID-19 pandemic, it is again necessary to amend TLC's lease site
redevelopment deadlines as stipulated in the amended lease to provide more time to
complete the necessary redevelopment steps.
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 Master Lease Agreement for Lease
Site 87-88/87W-88W is hereby approved.
2. The Mayor is hereby authorized to execute said Master Lease Agreement
Amendment.
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a
regular meeting thereof held on the 14th day of December, 2021 on the following vote:
AYES' Headding, Addis, Barton, Ford, Heller
NOES' None
ABSENT: None
John Freaoding, Mayor----
ATTEST:
ova -
Dana Swanson, City Clerk
AMENDMENT #2 TO THE LEASE AGREEMENT FOR
LEASE SITE 87-88/87W-88W,
LOCATED AT 833 EMBARCADERO
This Amendment ("Amendment #2") is made and entered into as of this U# day ofbe( _f i'Y)
2021, by and among the City of Morro Bay, a municipal corporation of the State of California,
hereinafter called "City,' and TLC Family Enterprises, a California corporation, hereinafter called
"Tenant." (Collectively, City and Tenant are sometimes referred to herein as the "Parties.")
WHEREAS, this Amendment #2 is to that certain amended Lease, which was signed on behalf
of the Parties and is effective as of December 11, 2018 (the "Master Lease"), and amended on
January 12, 2021; and
WHEREAS, Tenant has received Precise Plan approval from the City of Morro Bay and Coastal
Development Approval from the Califomia Coastal Commission for a complete redevelopment
of the site including new restaurant, retail and hotel use, and other public access improvements
as -proposed; and
WHEREAS, Tenant is in final building plan check, and due to unforeseen circumstances
necessitating a significant change to Tenant's building plans, and to the continued social,
economic and supply chain effects of the ongoing COVID-19 pandemic, it is again necessary
to amend the Master Lease to provide more time for Tenant to redevelop the lease site as -
stipulated in the Master Lease; and
WHEREAS, the Parties desire to amend the Master Lease so the redevelopment project can
proceed as contemplated.
NOW THEREFORE, Tenant and City agree as -follows:
1. Sections 13.02(G), 13.02(H) and 13.02(1) of the Master Lease Agreement between
Tenant and City are replaced in their entirety to read as follows:
Section 13.02 TENANT'S Obligation to Redevelop Site
G. Obtain Building Permits for the Project no later than January 14, 2022.
H. Commence construction of the Project no later than February 14, 2022.
Commencement shall mean when the '1'F1NANT has incurred at least
$50,000 of hard construction costs for actual work satisfactorily completed
for the Project on the site pursuant to the approved Building Permit.
I. Completion construction of all components of the Project no later than
May 14, 2023. Completion shall mean when the Project is entitled to
be issued a final Certificate of Occupancy.
2. Except as expressly stated herein, all provisions of the Master Lease shall remain in
full force and effect.
3. 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:
Johayor
APPROVED AS TO FORM:
hi7IS A/NW
Chris F. Neumeyer, City rrney
ATTEST:
604-, tirk9n"------
Dana Swanson, City Clerk
TLC Family Enterprises,
a California Corporation
cee-
arise Hans 'on, President
By:
Travis Leage; Secreta