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HomeMy WebLinkAbout2001-05-08 - AGENDA REPORTS - METROLINK LEASE AGREEMENT (2)CITY OF SANTA CLARITA AGENDA REPORT City Manager Item to be CONSENT CALENDAR DATE: May S, 2001 Jeffrey Lambert 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 four-month extension of the lease agreement between the City and Santa Clarita, LLC for the Commuter Rail Station Site (Metrolink) from April 30, 2001, to August 31, 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 regarding the future implementation of the Porta Bella Remediation, Restoration and Development Project. 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. Five extensions to the lease agreement between the City and the property owners have occurred since April 1999. Throughout this process, City staff and the owner have been discussing the terms of the Development Agreement amendment and other proposed changes to the existing Porta Bella project. At the April 24, 2001, City Council meeting, the Council approved a month-to-month lease extension to commence on April 30, 2001. The month-to-month lease included a 30 -day notification period where either party could terminate the lease. However, it was APPROVED Agenda Item: determined that this 30 -day notification period conflicted with the original lease provisions related to the timing of the City's option to purchase the Metrolink station. The option to purchase provisions call for a 90 -day notification period. As a result, the owner has requested that the month-to-month lease extension be changed to a standard four-month extension to expire on August 31, 2001. ALTERNATIVE ACTIONS 1. Deny the lease extension and purchase the Metrolink Station Site. 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. Sixth Amendment of Lease LMH s: \ pbs \ council \ metro6.doc SIXTH AMENDMENT OF LEASE This Sixth 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 and December 12, 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 term of the Original Lease, as hereby amended, shall be extended from April 30, 2001, through midnight, Santa Clarita, California time on August 31, 2001. 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 al BERMITE RECOVERY, L.L.C., a Delaware limited liability company By: Remediation Financial, Inc. Managing Member Myla D. Bobrow, President & CEO Remediation Financial, Inc.