HomeMy WebLinkAbout12-13-2011, B3-LEASE OF 1123 MILL STREET BY SLO COUNTY ARTS COUNCILcounci lj acEnda Repoat Meeting Date
12/13/1 1
Item Number "S
C I T Y O F S A N L U I S O B I S P O
FROM :
Shelly Stanwyck, Parks and Recreation Directo r
SUBJECT :LEASE OF 1123 MILL STREET BY SAN LUIS OBISPO COUNTY ART S
COUNCI L
RECOMMENDATION
Give staff direction to finalize the negotiations of a lease agreement for 1123 Mill Street by Sa n
Luis Obispo County Arts Council in the amount of $1,294 for one year and authorize the City
Manager to execute the finalized agreement subject to approval by the City Attorney and receipt b y
the tenant of a use permit .
DISCUSSIO N
Backgroun d
As part of the City's 2011-13 Financial Plan, the Parks and Recreation Department propose d
leasing a portion of the Ludwick Community Center (LCC), 660 square feet of office spac e
referred to as 1123 Mill Street (Attachments 1), for lease as a revenue enhancement o f
approximately $11,000 per year .
On November 28, 2011 the City received and distributed to Council the attached lette r
(Attachment 2) from San Luis Obispo County Arts Council . San Luis Obispo County Arts Counci l
is a Countywide Arts Council that supports the visual, literary, and performing arts communit y
of San Luis Obispo County . The organization in the past has provided input and support to th e
City's Public Art Coordinator on public art projects . At this time, San Luis Obispo County Art s
Council is asking to lease the portion of 1123 Mill Street presently offered for lease by the Cit y
for $1,294 per year . This amount reflects the prorata share of maintenance costs for the 66 0
square-foot office at the LCC .
Direction by Mayor to Place Item on Agend a
In accordance with Council Policies and Procedures the Mayor can direct staff to place items o n
future Agendas . On December 2, the Mayor directed staff to place an item on the December 13 ,
2011 agenda regarding a lease with San Luis Obispo County Arts Council for 1123 Mill Street fo r
Council's consideration .
City Policy Regarding Leasing to Non Profit s
The City's Property Management Manual, Section 475-C (Property Management and Disposal )
provides guidance regarding the leasing of City-owned buildings and real properties . It state s
specifically at page 475-10 :
Approvalof Lease of 1123MillStreet Page 2
LEASES OF CITY-OWNED BUILDINGS AND REAL PROPERT Y
The following guidelines apply to leases of City-owned buildings to outsid e
parties.
Leases with Non-Profit Organization s
1.Requests for the long-term use of City property by non-profit organization s
should generally follow the same review procedures as the sale or lease of Cit y
property by private for-profit entities .
2.The proposed use should be consistent with the goals and objectives of th e
City's General Plan and not conflict or preclude any existing or planned City
use .
3.Any development or operations directly related to the proposed use shoul d
have a clear and measurable community benefit in alignment with City goals ,
policies, and plans.
4.Any lease agreements for the use of City property by non-profit organization s
that charge a less than market rate for the City property should include a
provision for community access and/or City use, or operate in close partnershi p
in the delivery of City services .
5.Lessees will be responsible for all property related use taxes that may b e
assessed.
Because the City "disposes" of property infrequently the most appropriate process will vary i n
each case depending on the circumstances . The guidelines in the Real Property Managemen t
manual state that they are "intended to provide the City with a framework for assessing the bes t
approach on a case-by-case basis . It is not intended to limit the approaches available to the
City : the overarching principle that should always apply is using an approach that will bes t
accomplish the City's objectives given the circumstances at the time ."There are five basi c
approaches that the City usually takes : request for proposals, broker services, exclusiv e
negotiations, competitive sealed bids or auction (or a combination of these approaches), whic h
are determined by the Council on a case-by-case basis depending on the circumstances .
'Ultimately the most appropriate course of action is a policy decision of the City Council .
Proposed Lease Term s
Should Council wish to enter into a lease with SLO Art Council, a draft Facility Lease for a ter m
of one year with a one year option to extend is attached (Attachment 4). The amount of rent
proposed is $1,294 . That amount is reflective of the annual maintenance and utility cost s
(excluding janitorial services, which will not be provided) for this space under consideration a t
the LCC . Those costs are $29,812 per year or approximately $1 .96 per square foot . The prorata
share for 1123 Mill Street (660 square feet) would be $1,294 per year . San Luis Obispo County
Arts Council would be responsible for all janitorial services in the leased premises . Parking wa s
not included in the rent amount sought as the parking behind the LCC is often used by larg e
groups renting the LCC and street parking is readily available for free in the area . An equivalen t
parking spot in a long term metered space or lesser used parking structure would cos t
approximately $480 to $720 a year . Upon receipt by San Luis Obispo Arts Council of a use permit
Approval of Lease of 1123 Mill Street Page 3
and approval by the City Attorney of the proposed agreement, the City Manager (if authorized b y
Council tonight) would execute the final facility lease agreement .
General Plan Consistency Determination & Administrative Use Permi t
The property is designated Office/Medium Density Residential in the General Plan and is Zone d
Public Facility (PF). The property has a split land use designation, with the frontage facin g
Santa Rosa Street designated Office . Community Development staff has made a preliminary
determination that the proposed use is consistent with the intent of General Plan policies .
Attachment 5 includes relevant General Plan policies for the General Plan designation of Office .
Public Facility (PF) Zon e
The property at 1123 Mill Street is zoned PF . Community Development staff have reviewed San
Luis Obispo County Arts Council's correspondence and have preliminarily concluded that i t
qualifies as a government office, and is therefore a conditionally allowed use in the PF zone . In
making the determination, staff reviewed the State designation of San Luis Obispo County Art s
Council as the Local Arts Planning Agency and its partnership with the County per Board o f
Supervisor's resolution . Typically, non-profit general offices are not allowed in the PF zon e
unless they qualify as a "Government Office" and perform quasi-governmental services .
Government offices are the only type of offices allowed in the PF zone, subject to prior approva l
of an Administrative Use Permit. If the City Council authorizes negotiation and execution of a
lease for 1123 Mill Street, it would be subject to the condition that the San Luis Obispo Count y
Arts Council obtains the requisite use permit . If a use permit application is approved through th e
City's normal review processes, the lease with the Arts Council can be executed allowing th e
Arts Council to occupy the space .
San Luis Obispo County Arts Council as a Government Offic e
The designation of San Luis Obispo County Arts Council as a "government office" is unique, bu t
based on legislative acts and designations by state and county bodies . The San Luis Obispo
County Arts Council has been designated by the County Board of Supervisors and the State o f
California as the Local Arts Planning Agency 'under the State-Local Partnership Program 2
designed to encourage local cultural planning (see Attachment 3). It is this unique and officiall y
designated collaboration with the County and State Legislature that qualifies the Arts Council a s
a government office . The purpose statement of the PF zone reads, that the "PF zone is intende d
to provide for public uses and that public uses are those conducted by governmental or nonprofi t
agencies3 ."Non-profits that receive State or local funding only would not qualify under thi s
determination unless they carry out quasi-governmental functions . Staff does not believe thi s
A local arts agency is a nonprofit organization, or agency of city or county government, officially designated to provid e
financial support, services, and/or other programs to a variety of arts organizations .,
2 The State-Local Partnership Program fosters cultural development on the local level through a partnership between th e
California Arts Council and the designated local arts agency* of each county . This partnership includes funding ,
cooperative activities, information exchange, and leadership enabling individuals, organizations, and communities t o
create, present, and preserve the arts of all cultures to enrich the quality of life for all Californians .
3 17 .36 .010 Purpose and application .
Approval of Lease of 1123 Mill Street Page 4
determination sets a precedent because of the circumstances unique to the San Luis Obispo
County Arts Council .
FISCAL IMPACT
The approximately 660 square feet of office at 1123 Mill Street was proposed as a revenu e
enhancement and "budget balancer" in the 2011-13 Financial Plan by the Parks and Recreatio n
Department . Revenues were projected at $11,000 per year from 1123 Mill Street in each year o f
the 2011-13 Financial Plan . The fiscal impact of this lease at below market rent is $9,706 in los t
revenues annually . As a point of information the property was marketed for lease at a Marke t
Rate of $1 .75 per square foot or $13,860 annually, which represented rent as well as the adde d
maintenance and utilities costs projected from this use (since the facility is not separatel y
metered).
ALTERNATIVE S
1.Full Market Rent to the San Luis Obispo County Arts Council .Council coul d
modify the proposed lease and approve a lease agreement with San Luis Obispo County
Arts Council at full market rent or approximately $13,860 per year consistent with th e
market rate the property was listed for rent .
2.$1 .00 per Year .Council could modify the proposed lease and approve a lease agreemen t
with San Luis Obispo County Arts Council in the amount of $1 .00 per year .
3.Request For Proposals to All Local Non-Profits .Over the years many nonprofits hav e
expressed interest in leasing various City properties for reduced rents . No nonprofits
were contacted when staff "listed" 1123 Mill Street for lease because the property wa s
proposed to be leased for added revenues, it is zone Public Facility and therefore a publi c
agency or quasi-public agency must be the tenant . However, Council could direct staff t o
issue a RFP to qualified Non-Profits and offer them an opportunity to propose a n
appropriate rental amount for the facility as well as modification to the zoning .
4.Continue to Seek a Tenant at Market Rate .If San Luis Obispo County Arts Counci l
does not want to pay Market Rent, and Council desires that the property be leased at th e
current market rate, Council could direct staff to not lease to San Luis Obispo County Art s
Council and continue to seek an appropriate Tenant for market rent .
ATTACHMENT S
1."For Lease Flyer "
2.Letter of Interest from San Luis Obispo County Arts Counci l
3.Board of Supervisors Resolution 2011-12 7
4.Proposed Lease Agreemen t
5.General Plan Policie s
T:\Council Agenda Reports\Parks & Recreation CAR\2011 P&R CARs\ Arts Obispo Lease of 1123 Mill CAR
ATTACHMENT 1
Premier downtown location . Close to government buildings, restaurants and shopping .
Suite size 660 Sq . Ft . with two offices, conference room, kitchenette, restrooms and fiber optic service .
Call for more details .
Corner of Mill and Santa Rosa Street adjacent to the Ludwick Community Center .
Total Space Available :1 Space Available Display Rental Rat e
660 SF Rental Rate : $1 .75/SF/Year Min .$1 .75/SF/Yea r
$13860 .00 Amt/Yea r
Type : Public Facility, Sub-type : Office Building $1155 .00 Amt/Mont h
Parcel info 002-325-001 Space Available : 660 SF Rental Rate : ($1 .75) /SF/Mont h
Zoning PF Space Type : Office Building Lease Type : /SF/Mont h
$1155 .00 /Year$ 13860 .00
Last Verified 8/30/2011 Parking Spaces subject to negotiatio n
Contact: James Breme r
(805)781-729 5
jbremer@'slocity .org
city O fsan tuts oBisp o
packs ana necneation Oepantmen t
FOR LEAS E
1123 Mill Street
San Luis Obispo, CA 93401
AUACHME1 2
ART SOBISPO
Son Luis Obispo County
Arts Counci l
P .O . Box 171 0
San Luis Obispo, C A
93406
Phone: (805) 544-9251
Pax: (805) 544-1522
office@artsobispo.org
www.artsobispo .org
Board of Director s
Mary Kay 1 larrington
President
Julie Frankel
Vice-President
Jane Voigts
Secretary
)anoKra y
Treasurer
Gordon Fugue
Crissa Hewitt
Richard Mortensen
Kathleen Waddel l
Janet Wallace
Ilrrxon y
Ann Ream
Staff
Charlotte Alexande r
Iixrtutitx Director
Jenna Hartzel l
i'raxnux 17ireaor
Barbara Radovich
Artc in Ertrrcvtinn Cooni''na/or
November 23, 201 1
To the members of the San Luis Obispo City Council :
The San Luis Obispo County Arts Council, also known as ARTS Obispo ,
is seeking approval to lease office space owned by the City of San Lui s
Obispo at 1123 Mill Street in downtown San Luis Obispo .
At this time we understand from City staff that the zoning of the propert y
allows for our organization's occupancy and use of the site .Assuming we
receive approval to lease the space, we are asking for consideration of a
reduction in the advertised rental rate, perhaps similar to that received b y
other City cultural partners, including the San Luis Obispo Museum of Art .
It was determined less than a month ago that we must leave our curren t
office/gallery space in the Creamery in downtown San Luis Obispo no late r
than December 31, 2011 . We have been actively seeking alternative spac e
since then, so expedited consideration of this request would be greatl y
appreciated . We put the word out to our extensive network of creativ e
people that we are in need of approximately 600 sq . ft. of office space
(donated if possible), and the availability of 1123 Mill Street was brought t o
our attention . Please note that we are NOT seeking gallery space at thi s
time — only general office space to house administrative and program staff .
This property seems ideal in terms of size, facilities, and location in th e
downtown area of the County seat .
The San Luis Obispo County Arts Council has long partnered with the Cit y
of San Luis Obispo to advance the arts, including the very popular Art Afte r
Dark and Open Studios Art Tour, as well as the collaborative Art in Publi c
Places program . We contribute to the richness of the City's cultura l
activities as well, helping to bring tourist dollars into the community .
We are a 501(c)3 not-for-profit public benefit organization dedicated t o
advancing the visual, literary and performing arts in San Luis Obisp o
County, specifically in the areas of arts in education, public access to th earts and opportunities for artists . The County of San Luis Obispo ha s
designated us as the County's Local Arts Planning Agency for the purpos eof acting as a comprehensive community arts organization . We act i n
partnership with the California Arts Council to foster cultural developmen t
on the local level through funding, cooperative activities, informatio n
exchange, and leadership — enabling individuals, organizations, an d
communities to create, present, and preserve the arts of all cultures t o
enrich the quality of life for residents and visitors .
As we begin celebrating 30 years of service to San Luis Obispo County i n2012, the Board of Directors of the Arts Council is re-visiting our vision and
mission statements . With an emphasis on collaboration and partnership ,the Board is looking to create a sustainable operating model in 2012 an d
develop a long-term strategic plan to better serve the needs of the visual ,
literary and performing arts community . Please consider partnering with us
to make that happen in 2012 and beyond .
cc: Katie Lichtig, City Manager
Advancing the Arts in San Luis Obispo County
Mary Key Ha 'ngton, Presiden t
Board 6f Directors
IN THE BOARD OF SUPERVISOR S
COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNI A
Tuesday May 3, 2011,
PRESENT : Supervisors Frank Mecham, Bruce S . Gibson, Paul A. Teixeira, Jame s
R. Patterson and Chairperson Adam Hil l
ABSENT : None
RESOLUTION NO.2011-12 7
RESOLUTION OF THE BOARD OF SUPERVISOR S
OF THE COUNTY OF SAN LUIS OBISP O
APPROVING PARTICIPATION IN THE 2011-1 2
STATE-LOCAL PARTNERSHIP PROGRA M
DESIGNATING THE LOCAL ARTS PLANNING AGENC Y
AND APPROVING AND AUTHORIZING EXECUTION OF A
GRANT CONTRACT WITH THE CALIFORNIA ARTS COUNCI L
The following resolution is now offered and read :
WHEREAS,the California Arts Council and the California Legislature hav e
established a State-Local Partnership Program (the "Program") designed to encourag e
local cultural planning and decision-making and to reach previously underserve d
constituencies ; an d
WHEREAS,the State-Local Partnership Program requires a mandatory match, at a
level of 1 :1, which may be from either public or private sources ; and
WHEREAS,pursuant to the 1980-81 Program Guidelines, the Board of Supervisor s
of the County of San Luis Obispo (the "Board of Supervisors") designated the San Lui s
Obispo County Arts Council as the Local Arts Planning Agency under the Program for th e
purpose of acting as a comprehensive community arts organization ; and
WHEREAS,said plan was finalized by Board Resolution No, 84-113 and approve d
by the State of California ; an d
WHEREAS,the Board of Supervisors and the San Luis Obispo County Arts Counci l
(together defined as the "Local Partner") are now eligible to apply for and receive a gran t
for continued planning and input from interested citizens in local arts program activities .
NOW, THEREFORE, BE IT RESOLVED AND ORDERED,by the Board o f
Supervisors of the County of San Luis Obispo, State of California as follows :
Section 1 :The Board of Supervisors hereby approves participation by the Loca l
Partner designated for 2011-12 as itself and the San Luis Obispo County Arts Council, i n
the 2010-2011 State-Local Partnership Program .
Section 2:The Board of Supervisors hereby authorizes and directs the Arts Counci l
Administrator, San Luis Obispo County Arts Council, to execute the Grant Contract o n
behalf of the Local Partnership and submit said contract to the State-Local Partnershi p
Program Grant Review and Advisory Panel .
Section 3 :During the County's annual budget hearings, the Board of Supervisor s
may consider funding for the San Luis Obispo Arts Council in an amount up to $41,000 o r
on an equal match basis.
ATTACHMENT 3
Upon motion of Supervisor Mecham , seconded b y
Supervisor Gibson , and on the following roll call vote, to wit :
AYES : Supervisors Mecham, Gibson, Teixeira, Patterson and Chairperson Hil l
NOES : None
ABSENT : Non e
ABSTAINING : None
the foregoing resolution is hereby adopted .
Ad 4m
Chairman of the Board of Supervisor s
ATTEST :
Julie L . Rodewald
Clerk of the Board of Supervisor s
By :(4 rkDeputy erk
APPROVED AS TO FORM AND LEGAL EFFECT :
WARREN R. JENSE N
County Counse l
By:/s/Rita L. Neal
Assistant County Counse l
Date:4/20/2011
STATE OF CAUFORNIA )ss .
COUNTY OF SAN LUIS OBISPO )
}I,JUUE L .RODEWALO,County Clerk of the above entitle d
County, and Ex-Officio Clerk of the Board of Supervisor s
thereof,do hereby certify the foregoing to be a full, true
and correct copy of an order entered in the minutes of said
Board of Supervisors, and now remaining of record in my
t office .
Witness,my hand and seal of said Board of Supervisors this
4th day of May, 2011.
JULIEL. ROPEWALD,County Clerk and Ex-Officio Clerk of th e
Board of Supervisors
By :Jr tt27DYf
V.Deputy'ierk
ATTACHMENT 4
DRAFT FACILITY LEASE AGREEMEN T
BETWEEN THE CITY OF SAN LUIS OBISPO AN D
SAN LUIS OBISPO COUNTY ARTS COUNCIL SAN LUIS OBISPO COUNTY ARTS COUNCI L
FOR LEASE OF PROPERTY A T
1123 MILL STREE T
This agreement entered into this day of , 2011 is mad e
by and between the City of San Luis Obispo ("the City") and The San Luis Obispo County Art s
Council, a non-profit California corporation .
RECITALS
WHEREAS,the City owns the premises commonly described as the Mill Street Offic e
Space at the Ludwick Community Center, located at 1123 Mill Street in the City of San Lui s
Obispo, California ("1123 Mill Street Office Space"); an d
WHEREAS,the City wishes to provide to San Luis Obispo County Arts Council th e
occupancy and use of the 1123 Mill Street Office ; an d
WHEREAS,1123 Mill Street is designated Office/Medium Density Residential in th e
General Plan and is Zoned Public Facility (PF); an d
WHEREAS,City Property Management Manual 475-C provides guidance for the leasin g
of City-owned buildings and real properties and permits the Council to evaluate proposed use s
consistent with City policy objectives on a case by case basis ; an d
WHEREAS,City Property Management Manual guidelines provide that the proposed us e
should be consistent with the goals and objectives of the City's General Plan and not conflict o r
preclude any existing or planned City Use ; an d
WHEREAS,at its December 13, 2011 meeting the City Council considered the reques t
of the San Luis Obispo Arts Council to lease space in the City facility, and determined that th e
San Luis Obispo Arts Council's request should be approved, subject to approval of a n
Administrative Use Permit, because of the unique status and circumstances of the San Lui s
Obispo Arts Council and because the City Council finds that the proposed use has a clear an d
measurable community benefit in alignment with City goals ; an d
WHEREAS,the City Council authorized the City Manager to negotiate and execute a
lease agreement with the San Luis Obispo Arts Council, subject the Arts Council applying fo r
and obtaining and Administrative Use Permit, and subject to final lease approval by the Cit y
Attorney ; an d
WHEREAS,the San Luis Obispo Arts Council has submitted an application for an d
received approval of an Administrative Use Permit for its proposes use of the City facility ; and
ATTACHMENT 4Arts Obispo New Lease Agreement Page 2
WHEREAS,the Community Development Director has determined that the propose d
use is consistent with the City's General Plan ; an d
WHEREAS,the Community Development Director has determined that the proposed us e
is consistent with Section 17 .36 .010 of the City of San Luis Obispo Municipal Code .
Now, therefore, the parties agree as follows :
LEASE PROVISION S
1 .Term of Agreement .The term of this agreement shall start upon execution by bot h
parties and expire on December 31, 2012 . By mutual written consent of both parties, th e
term of this agreement may be extended a period of one year .
2 .Rent.For use of the approximately 660 square feet of office which is located exclusivel y
on the ground floor of the Mill Street side of the building and which address is 1123 Mil l
Street Office ("the Premises"), Arts Obispo shall pay the City a rent fixed at $1,294 pe r
year (the prorate share for maintenance and utilities based on a cost of $1 .96 per squar e
foot) for the lease term .
3 .Extent and Condition of the Premises .San Luis Obispo County Arts Council shal l
accept the Premises "as is". This agreement shall not obligate the City to guarantee th e
condition of the Premises, the suitability of the Premises for San Luis Obispo County Art s
Council's intended use, the duration that the Premises may be safely occupied, or th e
availability of alternate facilities . Should any occurrence (such as fire, earthquake, flood ,
or the need to repair, improve, or use the Premises) necessitate closing the Premises o r
a portion of the Premises to the public, Arts Obispo shall have no recourse against th e
City for any loss incurred .
4 .Cost of Operations .San Luis Obispo County Arts Council shall bear the entire cost o f
its operations on the Premises, including :
A.paying the cost of any maintenance for which San Luis Obispo County Art s
Council is responsible ;
B.paying any taxes and fees related to its occupancy of the Premises, including al l
possessory interest taxes which may be imposed .
5 .Maintenance of the Premises .San Luis Obispo County Arts Council agrees to perfor m
all "housekeeping tasks" as well as any routine repairs to the premises . Housekeepin g
tasks shall generally include routine emptying of wastebaskets, cleaning of windows an d
doors, removal and or reporting of graffiti, sweeping of sidewalks in front of the premises ,
vacuuming and spot cleaning of carpets, and cleaning of any window blinds .
B3-10
Arts Obispo New Lease Agreement ,FTRCHMENT 4
6 .Alterations to Building .San Luis Obispo County Arts Council agrees that shall have n o
right to make alterations to the building during the term of its lease .
7 .Fire Inspection .A fire inspection will be completed by the City's Fire Department a t
least annually, and more frequently if necessary . San Luis Obispo County Arts Counci l
shall be responsible for complying with any corrective notice resulting from suc h
inspections in its portion of the premises .
8 .Relationship of Parties .Under this agreement, the City shall be solely and exclusivel y
a lessor, and San Luis Obispo County Arts Council shall be solely and exclusively a
lessee . San Luis Obispo County Arts Council shall not be considered a partner, agent ,
officer, or employee of the City . San Luis Obispo County Arts Council's officers ,
members, affiliates, volunteers, employees, and independent contractors shall not b e
considered agents, officers or employees of the City .
9 .Use of Facilities by Outside Parties .In recognition of the below market lease rate ,
San Luis Obispo County Arts Council agrees :
A.To use due diligence in encouraging other groups and organizations to utilize th e
facilities whenever not in use by San Luis Obispo County Arts Council . First
consideration for use by others will be given to local non-profit groups . Use of th e
facility by other groups will be coordinated with the San Luis Obispo County Art s
Council schedule .
B.To prepare an annual report for the City that summarizes the facility's us e
statistics for the calendar year and provides an assessment of whether San Lui s
Obispo County Arts Council is allowing public use of the facility consistent with th e
terms of this agreement .
10 .Operations Manager .San Luis Obispo County Arts Council will designate a full or part -
time operations manager who will be responsible for meeting the terms of this agreemen t
and assuring the fullest community use of the facility .
11 .Assignment .San Luis Obispo County Arts Council shall not assign this agreement t o
another party without the City's prior written consent .
12 .Subrogation Waiver .The City and San Luis Obispo County Arts Council release an d
relieve each other and waive their entire rights of recovery against each other for damage fro m
perils covered by their property insurance, whether due to the negligence of the City, San Lui s
Obispo County Arts Council, their agents, their officers, their employees, or their guests .
13 .Hold Harmless and Indemnification .San Luis Obispo County Arts Council agrees t o
defend, indemnify, protect and hold the City and its agents, officers and employee s
harmless from and against any and all claims asserted or liability established for damage s
or injuries to any person or property, including injury to the Contractor's employees, agent s
or officers which arise from
B3-11
ATTACHMENT 4
Arts Obispo New Lease Agreement Page 4
or are connected with or are caused or claimed to be caused by the acts or omissions o f
the Contractor, and its agents, officers or employees, in performing the work or service s
herein, and all expenses of investigating and defending against same ; provided, however ,
that the Contractor's duty to indemnify and hold harmless shall not include any claims o r
liability arising from the established sole negligence or willful misconduct of the City, it s
agents, officers or employees . Without limitation, from and after the date of execution o f
this Agreement, the San Luis Obispo Arts Council shall also indemnify and defend City ,
using counsel approved by City in its absolute discretion, from any and all third part y
challenges to this Agreement or any related entitlement or approval contemplate d
hereunder .
14.Insurance .San Luis Obispo County Arts Council shall procure and maintain for th e
duration of the contract insurance against claims for injuries to persons or damages t o
property that may arise from or in connection with the performance of the work
hereunder by San Luis Obispo County Arts Council, its agents, representatives ,
employees, or sub-contractors as defined in Exhibit 1 .
15.Termination .If the City determines that San Luis Obispo County Arts Council is no t
faithfully abiding by any term or condition of this agreement, the City may send writte n
notification giving San Luis Obispo County Arts Council a 15-calendar day notice to cur e
the deficiency . If San Luis Obispo County Arts Council has not cured the deficienc y
within the 30 days specified in the notice, that failure shall constitute a breach of th e
agreement, and the City may give written notice to terminate the agreement effective 3 0
calendar days from receipt of the notice .
If the City determines that it needs to use the property at 1123 Mill Street for municipa l
government purposes (such as civic center expansion), the City may give written notic e
to San Luis Obispo County Arts Council to terminate the agreement effective 30 calenda r
days from receipt of the notice .
16.Cooperation upon Termination or Expiration .In the event of termination o r
expiration, San Luis Obispo County Arts Council shall fully cooperate by relocating it s
operations before the termination or expiration date and by not seeking relocatio n
assistance from the City . By midnight on the termination or expiration date San Lui s
Obispo County Arts Council shall remove from the Premises all property in its possessio n
or custody and shall leave the Premises in a condition as good as when received ,
excepting normal wear and tear . Any property remaining on the Premises after th e
termination or expiration date shall be deemed abandoned .
17.Notices .All official notices required under this agreement shall be given in writing an d
submitted by certified mail, postage prepaid and addressed as follows :
To the City :City Administrato r
City of San Luis Obisp o
990 Palm Street
San Luis Obispo, CA 93401
B3-12
P AThCNMEM 1ageArts Obispo New Lease Agreemen t
To San Luis Obispo County Arts Council : President
San Luis Obispo County Arts Counci l
P .O . Box 171 0
San Luis Obispo, CA 9340 6
18.Enforcement Costs and Attorney's Fees .The prevailing party in any action betwee n
the parties to this agreement brought to enforce the terms of this agreement may recove r
from the other party its reasonable costs and attorney's fees in connection with such a n
action .
19.Entirety and Integrity of Agreement .This document represents the entire an d
integrated agreement between the City and San Luis Obispo County Arts Council . Thi s
document supercedes and negates all prior negotiations, representations, agreements ,
and amendments, either written or oral, regarding the Premises and the operation of a
community performing arts theater on the Premises . This document may be amende d
only by written instrument executed by both the City and San Luis Obispo County Art s
Council . All provisions of this agreement are expressly made conditions . Thi s
agreement shall be governed by the laws of the State of California .
This agreement is executed by the following authorized representatives :
ATTEST :CITY OF SAN LUIS OBISPO ,
A Municipal Corporatio n
City Clerk Katie Lichtig, City Manage r
APPROVED AS TO FORM :SAN LUIS OBISPO COUNTY ARTS COUNCI L
City Attorney
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Attachment 5
The following General Plan policies provide specific guidance on use of properties related to
quasi-governmental and art facilities for properties designated in the General Plan as Office .
3 .4 Office s
3 .4.1 Purpose and Included Uses
The City should have sufficient land for Office development to meet the demands of City resident s
and the specialized needs of County residents . Office development i n c l u d e s professiona l
and financial services ( such as doctors,architects, and insurance companies and banks )
and government agencies . The City should retain the regional offices of state and federal agencies . Not
all types of offices are appropriate in all locations . (See office location policies below . Also see th e
Public Facilities section).
3 .4 .2 Office Locations
A.All types of offices are appropriate in the downtown General Retail district, but are discourage d
at street level in storefronts of the commercial core .
B.All types of office activities are appropriate in the Office district which surrounds th e
downtown commercial area, though offices needing very large buildings or generating substantia l
traffic may not be appropriate in the area which provides a transition to residential neighborhoods .
C.Medical services should be near the hospitals, and may also be located in othe r
commercial areas of the City .
D.Government social services and the regional offices of state and federal agencie s
should be near the intersections of South Higuera Street, Prado Road, and Highway 10 1
(Figure 5);
E.Offices having no substantial public visitation or need for access to downtown governmen t
services may be in Services and Manufacturing districts .
F.Certain business and professional services having no substantial public visitation o r
limited need for access to downtown government services may be in Services and Manufacturin g
districts . Examples of such uses are computer services, utilities engineering and administration ,
architects and engineers, industrial design, advertising, building contractors, labor an d
fraternal organizations, veterinarians, and insurance and financial services that do not directl y
serve retail customers .
G.Certain business and professional services with limited need for access to downtow n
ga anent services may be located in areas that are away from the downtown, and designate d
Community Commercial . Appropriate types of offices i n c l u d e those that provide direc t
"over-the-counter" services to customers and clients . Professional offices may also b e
appropriate, particularly above the ground floor .
5 .1 .9 Different Office s
Government and private activities of types not listed in policies 5 .1 .4, 5 .1 .5, and 5 .1 .6 may be establishe d
in these identified areas, so long as they are compatible with and do not displace the governmen t
functions which should be located in the are a
5 .2 .1 Cooperatio n
The City should cooperate with other agencies and with community groups to help provide facilities for a
library, and for arts and sciences which meet broad community cultural needs .
5 .5 Community Arts Support
The City will continue to support community arts programs through a variety of means, such as loans ,
grants, and help in obtaining sites .
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