HomeMy WebLinkAboutReso 36-19 Lease site 124-128 & 124W-128W & 113W Embarcadero RoadRESOLUTION NO. 36-19
RLZOTILI •' •OF THE CITY OF MORRO BAY, CALIFORNIA
CONDITIONALLY AUTHORIZING THE MAYOR TO EXECUTE
�OCUMENTS NECESSARY•^ A NEW LOAN
TRUST RELATED • AND • THE LEASE
AGREEMENT FOR LEASE SITE 124A28/124WA28W & 113W
WITH MMBS, LLC, LOCATED AT 1213,1215 AND 1217
EMBARCADERO ROAD, MORRO BAY
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, through an assignment and assumption agreement, MMBS, LLC
(Robert Fowler) has been the lessee of Lease Site 124-128/124W-128W and 113W
since 2012 and is a tenant in good standing pursuant to the original lease agreement as
previously amended (the "Lease Agreement"); and
WHEREAS, MMBS, LLC is completing overall redevelopment of the site as -
required in the Lease Agreement consisting of new docks/slips, new buildings, public
benefits and associated improvements; and
WHEREAS, Del Toro Loan Servicing, Inc., the entity servicing a loan to MMBS,
LLC from three parties in the total amount of $500,000, is requesting approval of a deed
of trust to secure that financing, which will be used by MMBS, LLC to complete the
required redevelopment; and
WHEREAS, MMBS, LLC is requesting an extension of the July 1, 2019, deadline
to complete the redevelopments by way of an amendment to the Lease Agreement.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro
Bay, California, as follows:
1. The Mayor is hereby authorized to execute, as necessary, any and all
documents, as approved by the City Attorney and Harbor Director,
necessary to consummate the loan and deed of trust desired by
MMBS, LLC,
2. The Mayor is further authorized to execute Amendment #6 to the
Lease Agreement, included with this Resolution.
RESOLUTION NO. 36-19
PAGE 2 of 2
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular
meeting thereof held on the 28th day of May, 2019 on the following vote:
AYES:
NOES:
ABSENT
ATTEST:
Headding, Addis, Davis,
None
None
ana Swanson, City Clerk
Heller, McPherson
01181.0024/�55424.1
AMENDMENT #6 TO LEASE AGREEMENT FOR
LEASE SITE 124428/124W428W AND 113W
1 but
This Amendment #6 is made and entered into as of this day of ,�U( 2019 by and
between the City of Morro Bay a municipal corporation of the State of California (hereinafter "CITY")
and MMBS, LLC, a California limited liability company (hereinafter "TENANT") to amend that certain
lease agreement for Lease Site 124-128/124W428W and 113W between City and Tenant dated October
19, 2010 as amended by five subsequent amendments (hereinafter, collectively, the "Lease")
WHEREAS, Tenant is in good standing under the terms and conditions of the Lease; and,
WHEREAS, Tenant has completed all phases of the Second Phase Improvements; and,
WHEREAS, Tenant has commenced construction of the Landside Improvements and is diligently
continuing construction; and,
WHEREAS, due to weather delays and other unforeseen delays construction of the
improvements will not be completed by July V, 2019 as required under the Lease; and,
WHEREAS, City and Tenant have agreed to an extension of time to complete the improvements.
NOW THEREFORE, City and Tenant mutually agree to amend said Lease as follows:
1. The second paragraph of Section 13.02 of the Lease shall be amended in its entirety to read as
follows:
"If the previous option is not voided as provided above, then TENANT shall have another option to
renew this Lease Agreement for a second additional fifteen (15) years potentially resulting in a fifty
year Lease; provided that TENANT completes the Second Phase Improvements in addition to
completion of the landside building Improvements on Lease Sites 124-128 and 124W-128W, all as
outlined in CUP #OPO-058 by September 1, 2019 (or as may be extended by and at the discretion of
the City Manager, but in no case later than December 31, 2019) (the "Third Phase Improvements").
That option shall only be valid if the Third Phase Improvements are completed and final building
inspections and a certificate of occupancy, as needed, are obtained by September 1, 2019 (or as may
be extended by and at the discretion of the City Manager, but in no case later than December 31,
2019); provided, that the parties understand and agree TENANT is not responsible for completing
the pocket park portion of the Third Phase Improvements if CITY exercises the CITY's Option,
described below in Section 13.06. The Third Phase Improvements shall be valued at a minimum of
$1,000,000 of actual construction costs (the "3rd Phase Minimum Construction Costs"), and proof of
expenses, as evidenced by copies of invoices by the proscribed timeline shall be provided to CITY.
Failure to timely complete the Third Phase Improvements and provide invoices evidencing the 3rd
Phase Minimum Construction Costs shall be a material default of this section and void the option for
TENANT to exercise second fifteen -year extension for completion of the Third Phase
Improvements."
2. Except as modified herein all other terms and conditions of the Lease and the amendments to the
Lease shall remain unchanged and in full force and effect.
01181.0024/554903.1
3. The effective date of this Amendment #6 is the date first written above.
IN WITNESS WHEREOF, the parties hereto hereby execute this Amendment.
CITY OF MORRO BAY
ATTEST:
ana Swanson, City Clerk
APPROVED AS TO FORM:
pher Neumeyer, City Attorney
TENANT-MMBS, LLC
v
Robert J. Fc
MMBS, LLC
r, Authort'Zed Member
01181.0024/554903.1