HomeMy WebLinkAboutReso 32-19 Amend 1 MLA 96 96W Flying Dutchman 945 Embarcadero17ROAVELv t"N KP[TAT. E
ity of Morro Bay, California
Wh�9EREAS7 the City of Morro Bay is the lessor of certain properties on the Morro
Bay Waterfront described as City Tidelands leases and properties; and
W6�EREAS, Flying Dutchman Enterprises (Tenant) has been the lessee of Lease
Site 96/96WW since February 2010 following a Request for Proposals process to
redevelop the site, and is a tenant in good standing; and
WF��REAS, on January 8, 2019 Tenant was granted a new 35-year Master
Lease Agreement (MLA) for completion of a significant site redevelopment project; and
WHEREAS, the MLA was to become effective (the Effective Date) upon signing
by both parties with the 35-year term commencing (the Commencement Date) upon the
Tenant being eligible to receive Certificate of Occupancy for the completion of the
redevelopment; and
WHEREAS, staff inadvertently wrote the MLA so both the Effective and
Commencement Dates are concurrent, and now the City and Tenant mutually agree to
modify the MLA, as needed to effectuate the original intent of the parties.
1. The attached Amendment #1 to the Master Lease Agreement for Lease
Site 96/96W is hereby approved.
2. The Mayor is hereby authorized to execute said Amendment #1.
PASSE® AND ADOPTED by the City Council of the City of Morro Bay at
a regular meeting thereof held on the 14t" day of May, 2019 on the following vote:
AYES:
NOES:
ABSENT
Headding, Addis, Davis, McPherson
None
Heller
-
__ATTEST:
Dana Swanson, City Clerk
01181.0001/553048.1
i1iIRkzl7►► IA91was
TO THE MASTER LEASE AGREEMENT
FOR LEASE SITE 96/96W,
LOCATED AT 945 EMBARCADERO
This Amendment (this Amendment #1) is made and entered into as of this ( day of
2019, by and between the City of Morro Bay, a municipal corporation, hereinafter called "City," and
The Flying Dutchman Enterprises, a California corporation, hereinafter called "Tenant." (Collectively,
City and Tenant are sometimes referred to herein as the "Parties.")
WHEREAS, on February 5, 2019, the Parties signed that certain lease for Lease Sites 96/96W
(Master Lease); and
WHEREAS, the Parties desire to amend the Master Lease to make certain modifications thereto
regarding the effective date of the Master Lease and termination of another lease between the
Parties (namely one that has been in effect since February, 2010), (Previous Lease).
NOW THEREFORE, Tenant and City agree, as follows:
1. Unless expressly stated herein, words used in this Amendment #1 shall have the same
meaning as stated in the Master Lease, except to the extent the context requires otherwise.
2. Section 1.01 of the Master Lease is amended in its entirety to read as follows:
The term of this Lease shall be deemed to have become effective as of February 5,
2019, (Effective Date) and, unless sooner terminated as provided herein, terminate,
without notice, on the thirty-fifth (35th) annual anniversary of the first day of the
complete calendar month following TENANT'S ability to obtain a Certificate of
Occupancy for the Project, as defined in Section 13.01 (Commencement Date).
Within five days after the Commencement Date, the Parties agree to sign a
Commencement/Termination Date Memo, substantially similar to Exhibit A, attached
hereto.
3. Section 1.04 of the Master Lease is amended in it entirety to read as follows:
This Lease hereby extinguishes and replaces every prior lease between CITY and
TENANT respecting the Premises, including the Previous Lease. Any right or
interest held by the TENANT pursuant to any existing lease, including the Previous
Lease, with respect to the Premises, which is not granted pursuant to this Lease,
shall be extinguished as of the Effective Date,
01181.0024/544766.1 Page 1 of 2
IN WITNESS WHEREOF, the parties hereto have executed this Amendment 7;1 as of the date written
above.
CITY OF MORRO BAY,
a municipal corporation
By:
THE FLYING DUTCHMAN ENTERPRISES,
a California Corporation
By:
Stan Van Beurden, President and Sole
Shareholder
APPROVED AS TO FORM:
Chris Kin" meyerCity Atrne ,y
ATTEST:
D a Swanson, ity Clerk
01181.0024/644766.1 Page 2 of 2
EXHIBIT A
COMMENCEMENT/TERMINATION DATE MEMO
[CITY LETTERHEAD]
The Parties have signed that certain Lease Agreement, dated February 57 20197 (the
"Lease"). Pursuant to Section 1.01 of the Lease the Parties agreed to sign a memo, substantially
similar to this memo, within 5 days after the Commencement Date as defined in the Lease. The
Commencement Date of the Lease is , 202_. The Lease terminates as of
, 205_, unless terminated earlier as provided in the Lease.
CITY OF MORRO BAY
By:
Mayor
FLYING DUTCHMAN ENTERPRISES
By:
Dated: Dated:
Stan Van Beurden, President
01181.0024/544766.1 Page 1 of 1