HomeMy WebLinkAboutReso 01-21 Lease Site 87-88 Amend 1 (TLC)RESOLUTION NO. 01-21
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA
APPROVING AMENDMENT #1 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 the social and economic effects of the COVID-19 pandemic it
is now necessary to amend TLC's lease site redevelopment deadlines as stipulated in
the 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 #1 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 12th day of January, 2021 on the following vote:
AYES Headding, Addis, Barton, Davis, Heller
NOES' None
ABSENT: None
John H'-,ad.r, g, ayor---
ATTEST:
ana Swanson, City Clerk
AMENDMENT #1 TO THE LEASE AGREEMENT FOR
LEASE SITE 87-88/87W-88W,
LOCATED AT 833 EMBARCADERO
This Amendment("Amendment #1 " is made and entered into as of this I2tdayof
)
2021, by and among the City of Morro Bay, a municipal corporation of the State of Califorslia,
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 #1 is to that certain Lease, which was signed on behalf of the
Parties and is effective as of December 11, 2018 (the "Master Lease"); and
WHEREAS, Tenant has received Precise Plan approval from the City of Morro Bay and Coastal
Development Approval from the California 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, due to the social and economic effects of the ongoing COVID-19 pandemic it is
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. Section 13.02 of the Master Lease Agreement between Tenant and City is replaced in its
entirety to read as follows:
Section 13.02TENANT'S Obligation to Redevelop Site
CITY and TENANT agree TENANT will construct improvements to the Premises
as outlined in Conditional Use Permit No. UPO-509 (CUP) consisting of complete
demolition of existing improvements and new mixed -use retail, restaurant/bar,
convenience food, transient occupancy (hotel) and slips/docks, and including improved
vertical and lateral (Harborwalk) public access and outdoor children's play area (Project)
and valued at a minimum of $3,600,000. Failure to complete the Project and to comply
with all conditions of the CUP, as evidenced by a final building permit inspection as
required by CITY in its governmental capacity, in addition to providing proof of expenses
as evidenced by copies of invoices by the proscribed timeline shall be a material default
of the Lease Agreement and subject to any remedies outlined in Article 11 herein,
including termination of the Lease.
TENANT acknowledges construction of the Project on the premises as outlined in
the CUP requires, but may not be limited to, obtaining a permit from the California
Coastal Commission, a City Precise Plan, and a City Building Permit. It is TENANT'S
obligation to fully investigate the issues and costs in obtaining those approvals. Failure
to obtain any and all required permits and approvals for the Project shall not be a reason
for failure to comply with this section. TENANT further acknowledges the CUP and
construction of the Project may require repair or replacement of all of portions of the
docks, existing buildings, revetments, access ways, sidewalks, drainage systems and
other current improvements on the Premises to the standards of the City Engineer and
TENANT agrees to meet those standards through review and revision of the final
Building Plans prior to issuance of a Building Permit for the construction of
improvements on the Premises.
TENANT further agrees to:
A. In addition to complying with the bonding requirements set forth in
Section 4.02, provide evidence of conditional or other financing necessary
for completion of the Project, as -approved by the Harbor Director, Finance
Director and City Attorney, no later than August 1, 2019..
B. File a complete application for a Coastal Development permit from the
California Coastal Commission for the Project no later than January 8,
2019.
C. Obtain a Coastal Development Permit and other necessary permits for
the Project no later than June 8, 2019.
D. File a complete application for Precise Plan review by the Planning
Commission for the Project no later than September 8, 2019.
E. Obtain Precise Plan approval from the Planning Commission for the
Project no later than January 8, 2020.
(NOTE Items A. through E , above, were timely completed prior to Amendment #1
revisions to this Section 13.02.)
F. File a complete application for construction drawings and plans to
obtain a Building Permit for the Project no later than February 11, 2021.
G. Obtain Building Permits for the Project no later than May 11, 2021.
H. Commence construction of the Project no later than November 1,
2021. Commencement shall mean when the TENANT 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.
1. Completion construction of all components of the Project no later than
November 1, 2022. Completion shall mean when the Project is entitled to
be issued a final Certificate of Occupancy.
J. Provide CITY with written Project progress checks (Progress Checks)
approximately every three months, beginning with the month of
December, 2020, and every three months thereafter. Progress Checks
will include, but not be limited to, the following:
i. Status and details of TENANT'S financing to begin and complete
the Project.
ii. Status of TENANT'S meeting the deadlines as stipulated in this
section.
iii. TENANT'S efforts and activities to date in advertising, marketing
and soliciting subtenants for the completed Project.
During construction of the Project, TENANT shall take all measures to:
A. Avoid any pollution of the atmosphere or littering of land or water by or
o riginating in or about the Premises or caused by TENANT'S construction
activities.
B. Keep the noise level on the Premises to a minimum so that persons in the
n eighborhood will be able to comfortably enjoy business and facilities in the area.
C. Prevent any pollutants, including but not limited to petroleum products, from
e ntering Morro Bay waters.
D. Avoid negative impacts on surrounding businesses.
E Prohibit storage of materials or equipment on public property and avoid
parking or traffic delays or impairment without prior consent of CITY.
F. Keep the construction site in a slightly, orderly, and safe manner at all times.
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 #1 is the date first written above.
IN WITNESS WHEREOF, the parties hereto have executed this Amendment #1 as of the date
written above.
CITY OF MORRO BAY
B
y
Joh , e-dying, FATior
APPROVED AS TO FORM:
9Ins iititinAdAft"
Chris F. Neumeyer, CiAtto
ATTEST:
'DalketSL,0AN1/45tn----
Dana Swanson, City Clerk
TLC Family Enterprises,
a California Corporation
Han son, re
By:
Travis Leage, S
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