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HomeMy WebLinkAbout2001-09-11 - AGENDA REPORTS - LEASE AGMT METROLINK (2)CITY OF SANTA CLARITA AGENDA REPORT City Manager Approval Item to be presented 4Y Jeffrey Lambert CONSENT CALENDAR DATE: September 11, 2001 SUBJECT: LEASE AGREEMENT EXTENSION FOR COMMUTER RAIL STATION SITE (METROLINK) DEPARTMENT: Department of Planning and Building Services RECOMMENDED ACTION City Council direct the City Manager to enter into a six-month extension of the lease agreement between the City and Bermite Recovery, LLC for the Commuter Rail Station Site (Metrolink) from August 31, 2001, to February 28, 2002, 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. 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. This will be the seventh extension of the lease for the Commuter Rail Station Site. Throughout this process, City staff and the applicant been negotiating the terms of the Development Agreement amendment and other proposed changes to the existing project, per the terms of the Memorandum of Understanding. A six-month lease agreement extension for the Metrolink station is requested that would begin on August 31, 2001, and end on February 28, 2001. Agenda Item: 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. However, termination of the lease could result in a financial impact to the City's General Fund. ATTACHMENT 1. Seventh Amendment of Lease LMH s:\pbs\council\ptabel9.doc SEVENTH AMENDMENT OF LEASE This Seventh Amendment ("Amendment") is dated as of 2001 and is by and between Bermite Recovery, L.L.C., a Delaware limited liability company ('Lessor") and the City of Santa Clarita, a municipal corporation ("Lessee"). 1. Recitals. 1.1 Lessee and Lessor's predecessors -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 29, 1999, December 20, 1999, February 29, 2000, December 12, 2000, and May 8, 2001 (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 term of the Original Lease, as hereby amended, shall be extended from August 31, 2001, through midnight, Santa Clarita, California time on February 28, 2002. 3. Limitation on Amendment. Except as expressly provided herein, the Original Lease and any amendments or releases of or relating to the Original Lease shall remain in full force and effect. 4. Ratification. By scrivner's error, Santa Clarita, L.L.C. was the identified "Lessor" under the Amendments dated February 29, 2000 and December 12, 2000 when such "Lessor" should have been identified as Bermite Recovery, L.L.C., a Delaware limited liability company. Accordingly, Bermite Recovery, L.L.C., a Delaware limited liability company, does hereby ratify, confirm, agree to and accept, as its own act and as if it had been named therein as "Lessor", each of the Amendments dated February 29, 2000 and December 12, 2000. IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the day and year first above written. Approved: City Attorney Attest: City Clerk CITY OF SANTA CLARITA M BERMTTE RECOVERY, L.L.C., a Delaware limited liability company By: Remediation Financial, Inc. Managing Member Myla D. Bobrow, President & CEO Remediation Financial, Inc.