HomeMy WebLinkAboutReso 57-24 approving Amend 1 to Master Lease for LS 30W-33W
01181.0001/1008780.1 1 of 2
AMENDMENT #1 TO THE LEASE AGREEMENT FOR
LEASE SITE 30W-33W,
LOCATED AT 201 MAIN STREET
This Amendment ("this Amendment #1") is deemed to have been made and entered into as of 1st
day of July, 2024, by and among the City of Morro Bay, a municipal corporation of the State of
California, whereinafter called "City," and WBAM, LLC., a California limited liability company,
hereinafter called "Tenant." (Collectively, City and Tenant are sometimes referred to herein as the
"Parties.")
WHEREAS, this Amendment #1 is to that certain Lease, which was signed on behalf of
the Parties and is effective as of January 28, 2014, (the "Master Lease");
WHEREAS, the Master Lease for site 30W-33W was assigned to WBAM, LLC, a California
limited ; and
WHEREAS, the Parties agree to amend the Master Lease to add percentage rent to
include the privately owned buildings in the Tidelands Trust lease boundary lines, as well as to
amend the Master Lease to provide for a standard provision for calculation of new minimum rent;
and
WHEREAS, the Parties agree to add language to the Master Lease concerning use of
privately owned buildings in the Tidelands Trust lease boundary lines, and further provide for
Clean Marinas Program certification and compliance with a Morro Bay Fire Department safety
inspection.
NOW THEREFORE, Tenant and City agree, as follows: Tenant and City shall provide for the
amendment of Lease as follows:
1. SECTION 2.03 D. Calculation of New Minimum Rent: Is hereby amended by adding a last
sentence, thereto to read as follows:
The Base Index shall be adjusted upon each Calculation of new Minimum Rent as set out
in this section so that the Base Index for CPI adjustment shall be the Consumer Price
Index for January 1 of the year of the calculation of new Minimum Rent.
2. SECTION 2.04 A. Percentage Rent: Is hereby amended by replacing in its entirety the
paragraph with the following language.
In addition to the Minimum Rent, TENANT agrees to pay to CITY at the time and in the
manner hereinafter specified, as additional Rent for the use and occupancy of the
Premises, a sum equal to the following for all TENANT'S Gross Sales as hereinafter
defined: ten percent (10%) for vessel slip and tie-up fees and five percent (5%) of eighteen
percent (18%) of the total income derived from the land based real estate/rental fees
generated at the Master Lease for site 30W-33W, less the amount of the Minimum Rent
paid pursuant to this Lease (the "Percentage Rent").
3. SECTION 13.03 TENANT Shall Commit to Clean Marinas Program Certification: Is
hereby amended thereto to read as follows.
TENANT shall commit to certification under the Clean Marinas Program CleanMarina.org,
by December
31, 2025.
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4. SECTION 13.05: Is hereby added with the following language.
1. Tenant agrees to no residential use on their Tidelands Trust lease property and
affirms that all uses of the Tidelands Trust lease property shall be as provided in
section 3.01 including but not limited to common areas which are accessible to all
subtenants.
2. Tenant will provide written confirmation of passage of a current safety inspection
of their Tidelands Trust lease property to the City in conformance with a City of
Morro Bay Fire Safety inspection no later than October 31, 2024.
5. Except as expressly stated herein, all provisions of the Master Lease shall remain in full
force and effect.
6. The effective date of this Amendment # 1 shall be deemed to be date first noted above.
IN WITNESS WHEREOF, the parties hereto have executed this Amendment #1 as of the date
written above.
CITY OF MORRO BAY WBAM, LLC
a California limited liability company
By: ______________________ By:
Carla Wixom, Mayor Craig Shaffer, Managing Member
APPROVED AS TO FORM:
By:
Kathleen Shaffer, Managing Member
Chris F. Neumeyer, City Attorney
ATTEST:
_____________________________
Dana Swanson, City Clerk