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HomeMy WebLinkAbout2000-12-12 - AGENDA REPORTS - METROLINK LEASE AGMT EXTENSION (2)CITY OF SANTA CLARITA AGENDA REPORT City Manager Approv Item to be presented CONSENT CALENDAR DATE: December 12, 2000 SUBJECT: LEASE AGREEMENT EXTENSION FOR COMMUTER RAIL STATION SITE (METROLINK) DEPARTMENT: Department of Planning and Building Services ECOMMENDED ACTION City Council direct the City Manager to enter into a four-month extension of the lease agreement between the City and Santa Clarita, LLC for the Commuter Rail Station Site (Metrolink) from December 31, 2000, to April 30, 2001, subject to City Attorney approval. BACKGROUND On March 23, 1999, the City Council approved a Memorandum of Understanding (MOU) between the City and Santa Clarita LLC, the owners of the Porta Bella property. On April 13, 1999, the City Council approved a modification to the existing Metrolink lease agreement, which extended the term of the lease for the Commuter Rail Station Site (Metrolink). Under the original terms of the Development Agreement between the City and the owner of the Porta Bella property, the property owner would deed the property to the City upon the recordation of their first subdivision or the City would purchase the Metrolink site by April 21, 1999. Prior to the owner's dedication or City's purchase of the site, the Development Agreement specified that the owner would leased the Commuter Rail Station Site to the City for one dollar ($1.00) per year. Since the property owner could not record the first subdivision by April 21, 1999, and funds were not available for the City to purchase the site, a lease extension was requested and subsequently approved. The modification to the lease agreement extended the lease an additional four months to August 21, 1999. The lease was extended a second time from August 21, 1999, to December 31, 1999, and a third time from December 31, 1999, to February 28, 2000. In February 2000, a fourth lease extension was granted to December 31, 2000. Throughout this process, City staff and the applicant have been negotiating APP000YED Agenda Item:14 the terms of the Development Agreement amendment and other proposed changes to the existing project. As staff continues the entitlement process, a four-month lease agreement extension for the Metrolink station is required. This extension would begin on December 31, 2000, and end on April 30, 2001. ALTERNATIVE ACTIONS 1. Deny the lease extension 2. Other actions as determined by the City Council FISCAL IMPACTS No fiscal impacts are anticipated by the recommendation listed in this report. ATTACHMENT 1. Fifth Amendment of Lease LMH s: \pbs \ council \metro5.doc Fifth Amendment of Lease This Amendment is dated as of , 2000 and is by and between Santa Clarita, L.L.C., a Delaware limited liability company ("Lessor") and the City of Santa Clarita, a municipal corporation ("Lessee"). Recitals. 1.1 Lessee and Lessor's predecessor in interest entered into that certain Second Commuter Rail Station Site Lease with Option to Purchase dated as of April 21, 1996, as amended on March 31, 1999, June 22, 1999, December 20, 1999, and February 22, 2000 (collectively the "Original Lease") for premises used as a public passenger commuter rail station (the "Premises"). 1.2 The parties wish to extend the term of the Original Lease on the terms and conditions more specifically set forth below. 1.3 Capitalized terms used herein shall have the meaning defined in the Original Lease unless otherwise defined herein. 2. Extension. The tern of the Original Lease as hereby amended shall be extended so as to expire on APRIL 30, 2001 unless the Lease is terminated earlier pursuant to the provisions of the Lease. 3. Limitation on Amendment. Except as expressly provided herein, the Original Lease shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the day and year first above written. Approved: City of Santa Clarita By: City Attorney Its: Attest: Santa Clarita, L.L.C., A Delaware limited liability company By: Remediation Financial, Inc. City Clerk Managing Member By: Myla D. Bobrow President