HomeMy WebLinkAboutReso 76-16 GAFCO Lease AmendmentRESOLUTION NO. 76-16
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA
APPROVING AMENDMENT #1 TO THE LEASE AGREEMENT FOR
LEASE SITE 110WA 12W AND A PORTION OF 111.5W
BETWEEN THE CITY OF MORRO BAY AND
GAFCO, INC LOCATED AT 1205 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, GAFCO, Inc., is the lessee of Lease Site 110W-112W and a portion
of 111.5W and is a tenant in good standing; and
WHEREAS, in accordance with the City's Master Lease Policy, the City and
lessee have negotiated and agreed to Amendment #1 to the lease agreement for Lease
Site 110W-112W and a portion of 111.5W, located at 1205 Embarcadero.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro
Bay, California, as follows.
1. The attached Amendment #1 for
111.5W is hereby approved.
2. The Mayo
Lease Site 110W-112W and a portion of
cil
of the City of Morro Bay at a
regular meeting thereof held on the 15th day of November, 2016 on the following vote:
AYES: Irons, Headding, Johnson, Smukler
NOES: None
r is hereby authorized to execute said Lease Amendment.
PASSED AND
ADOPTED by the City Coun
ABSENT:
ABSTAIN
TTEST:
Makowetski
None
ANA SWANSON, City
Clerk
J9yMIE L. IRONS, Mayor
AMENDMENT # 1 TO LEASE AGREEMENT FOR LEASE SITE 110W-112W AND A
PORTION OF 111. S W
This Amendment # 1 ("this Amendment") is made and entered into as of this day of
2016 by and between the City of Morro Bay,
a municipal corporation of
the State of California (hereinafter "CITY") and GAFCO, Inc., a California corporation, dba
Great American Fish Co. (hereinafter "TENANT") to amend that certain lease agreement for
Lease Site 110W-112W and 111.SW (hereinafter the "Lease")
dated July 1, 2005.
Whereas, the Lease currently terminates on June 30, 2025; and
be CITY and TENANT
Whereas, TENANT planned long-term improvements on the Lease Site pursuant to CUP# UPO-
05 8 (the "CUP") including demolition and reconstruction of two restrooms, construction and
installation of a new floating dock and gangway, and installation of a new heating and air
conditioning system ("Phase 1 "), and construction of a fish market and public view deck ("Phase
2"); and
Whereas, TENANT and CITY acknowledge the three previous amendments to the Lease were
purportedly approved and executed but are now null and void; and
Whereas, TENANT completed the Phase 1 improvements, with agreed -upon modifications
consisting of electrical, interior, refrigeration and window tinting in lieu of the heating and air
conditioning systems, in a total amount of investment above the originally agreed -upon amount
of $143,000, which amount was confirmed in documentation provided by TENANT; and
Whereas, TENANT intends to complete Phase 2 in accordance with the CUP.
NOW THEREFORE, CITY and TENANT do mutually agree to the following:
1. Section 1.01 of the Lease is amended so the term of the Lease is extended for a period
of ten years through June 30, 2035, unless terminated sooner as provided in the Lease, for
completion of the Phase 1 improvements as set forth in CUP, and (ii) for an additional fifteen
years, through June 30, 2050, unless terminated sooner as provided in the Lease, conditioned on
the timely and satisfactory completion of the Phase 2 improvements, as outlined in Section
13.01, below.
01181.0024/322957.7
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Section 13.01 CVII tLl MAIU11 of Fish Market and View Deck Improvements
iew deck improvements on the Premises as outlined in the CUP and valued at a minimum of
7835500 in hard and soft construction costs, as estimated by TENANT (the "Improvements").
,ailure of TENANT (1) to comply with the below schedule, (11). complete the Improvements,
111) comply with all conditions of the CUP, as evidenced by a Final Inspection/Occupancy
ipproval as required by CITY, acting in its governmental capacity, or (iv) provide proof of
• evidenced by copies • invoicesby proscribed .. • .• acceptable t•
ITY to utilize any or all of the remedies outlined in Article I I herein including termination of
ITY'S Harbor Director shall be a material default of the Lease by TENANT and authorize
Department for . CUP amendment/approval as
buildingImprovements no later than December 31, 2016, and obtain a
permit
from CITY in its governmental capacity,�•� •, Improvements
• .. asreasonably
practical thereafter, but in no event later than October 1, 20170
Keep the building permit in effect from the date of issuance and begin actual
• •, nolater than•' daysafter issuance ofthebuilding • permit;
provided, . • • be considered to have begun
upon satisfactory
completion of foundation . • • • • portion•Improvements, .'
-
evidenced byinspection approval of portion of Improvementsfrom
acting in its governmental
•, capacity.
Complete • • • obtain Final Ins•- • i •. • • • no
later than
November
•. 2018
During construction of improvements, TENANT shall take all appropriate measures
necessary not to cause:
A. Any pollution of the atmosphere or littering of land or water by or originating
in or about the Premises or resulting from any of TENANT'S construction
activities,
B. The noise emanating from the Premises to exceed levels as proscribed in the
Morro Bay Municipal Code,
C. Any pollutants, including, but not limited to, petroleum products, from
entering Morro Bay waters,
D. Storage of materials or equipment anywhere except on the Premises or as
otherwise allowed pursuant to an Encroachment Permit issued by CITY,
01181.0024/322957.7
Trafficvehicles, as reasonable determined by CITY'S Harbor Director,
delays or •Iirment without prior consentof and
The construction site to be maintained in an unsightly, unorderly and unsafe
manner at all
ommission and Precise Plan Permit needed from CITY in its governmental capacity, as well as
ther entities, for construction of the Im P rovements pursuant to the CUP have been obtained and
re sti effect*ve (and subject to amendment). It s TENANT'S obligation to fully investigate
he issues and costs in obtaining the required CITY Building Permit, to be issued in CITY'S
overnmental capacity. Failure to obtain any and all required permits and approvals for
onstruction of the Im P rovements shall not be a reason for failure to comply with this Section.
equire an evaluation of the adequacy of the existing revetment and seawall by a qualified
ngineer to insure structural integrity sufficient to support the Improvements. TENANT shall be
equired to make repairs to the revetment and seawall, if any are required, as determined by the
tructural adequacy evaluation and the standards of the City Engineer.
equire repair or replacement of all or portions of all docks, existing buildings, access ways,
idewalks, drainage systems and other improvements on Premises to meet the standards of the
ity Engineer. TENANT agrees to provide building plans that meet those standards during the
eview and revision of Final Building Plans prior to issuance of a Building Permit for the
onstruction of tTENANThe Improvements.! •rees to make those• i repairs and
Lease Restriction: In consideration of the issuance of the Amended Coastal
Development Permits (CDP) 3-08-025-A1 and 3-08-025-A2, TENANT and CITY agree all of
the terms and conditions of said Amended CDPs 3-08-025-A1 and 3-08-025-A2 (Attached as
Exhibit A) are conditions of the Lease. TENANT and CITY agree not to modify or amend any
portion of the Lease consisting of the conditions of Amended CDPs 3-08-025-A1 and 3-08-025-
A2 without the prior written approval of the Executive Director of the Coastal Commission.
TENANT and CITY also agree to include the conditions of Amended CDPs 3-08-025-A1 and 3-
08-025-A2 in any future lease on the Premises.
3. Section 13.03 of the Lease is hereby deleted and no further force of effect.
4. Except at expressly stated herein, all terms and conditions of the Lease remain in fu11
force and effect.
01181.0024/322957.7
5. The effective date of this Amendment shall be the date it is signed on behalf of CITY,
as long as it has also been signed on behalf of TENANT.
IN WITNESS WHEREOF, the parties hereto hereby execute this Amendment.
CITY OF MORRO BAY
By:
• . •
APPROVED AS TO FORM:
Joseph
ATTEST:
. Pannone, City Attorney
Dana Swanson, City Clerk
01181.0024/322957.7
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TENANT
By