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HomeMy WebLinkAbout06/06/2000, C9 - MEMORANDUM OF AGREEMENT WITH SAN LUIS OBISPO LITTLE THEATRE CONCERNING PROPERTY AT 630 MONTEREY STREET Council °°° - -oo j agcnaa Report ,�` , C9 C I T Y OF SAN LUIS OBISPO FROM: Ken Hampian, Assistant City Administrative Officer440, Prepared By: Wendy George, Assistant to the City Administrative Officer vo, SUBJECT: MEMORANDUM OF AGREEMENT WITH SAN LUIS OBISPO LITTLE THEATRE CONCERNING PROPERTY AT 630 MONTEREY STREET CAO RECOMMENDATION Approve a Memorandum of Agreement with the San Luis Obispo Little Theatre regarding provisions of a proposed lease of real property at 630 Monterey Street for the purpose of constructing a community theater on the site. DISCUSSION Background At its meeting of March 7, 2000, the City Council conceptually approved the relocation of the San Luis Obispo Little Theatre (SLOLT) to a portion of parking lot#14 at 630 Monterey Street. (See Attachment 1.) This approval was given with allowance for a change to a second alternative of using the City-owned property at 610 Monterey Street plus property at 614 Monterey Street, if the 614 Monterey Street property becomes available to the City before SLOLT is ready to finalize its construction drawings. At that same meeting, the Council directed staff to negotiate a Memorandum of Agreement with the SLOLT relating to its eventual relocation. Staff has met with members of the SLOLT board of directors and is proposing the attached Memorandum of Agreement (Attachment 2)for Council approval. Terms of the Agreement The agreement is not a property lease, but rather is an agreement that holds the property for SLOLT until it is ready to actually begin construction of a community theater. At that time, the agreement will end and a regular property lease will be signed by the two parties. Specifically,the agreement contains the following provisions: • When SLOLT is ready to proceed with construction, the City will provide a 40 year lease of the property at 630 Monterey Street. • Should the property at 614 Monterey Street become available to the City prior to the completion of construction design, SLOLT will work with the City to relocate the theater site to 610 and 614 Monterey Street. • Once the lease is signed,rent will be fixed at$1.00 per year. C9-1 Council Agenda Report—MOA with San Luis Obispo Little Theatre Page 2 • The City agrees to initiate the necessary rezoning and General Plan Amendment to allow the theater to be a conforming use, recognizing that the City cannot make a binding commitment to act in its legislative capacity in advance. • The City and SLOLT agree to resolve all issues relating to loss of parking and parking requirements prior to rezoning and the General Plan Amendment. • In addition to following the usual planning review process, the Public Works Director must review the theater design to assure its compatibility with a possible future parking garage. • SLOLT will be responsible for construction, operation and maintenance of the theater without any assistance from the City. • SLOLT is required to present the City with a fundraising plan by November 30, 2000. • SLOLT is given three years from the date of the agreement to raise two-thirds of the construction costs of the building. • A design and construction schedule that anticipates completion of construction in approximately three years is included as an attachment to the agreement. CONCURRENCES The Community Development Director and Public Works Director concur with the terms of this agreement. FISCAL IMPACT Approval of the Memorandum of Agreement will not have a fiscal impact itself. However, as indicated in the earlier staff report on this matter, when construction begins there will be a loss of parking revenue of approximately $13,200 annually from theelimination of monthly parking, calculated at current rates. On the other hand, since the proposed portion of the parking lot was purchased with General Fund money for eventual cultural uses, and the parking lot was always intended as an interim use, this "loss" could instead be viewed as just the ending of a modest fiscal benefit the Parking Fund has enjoyed for a number of years. ATTACHMENTS 1. Map of site location 2. Memorandum of Agreement C9-2 ti-;i-t'U P R-4- �B �9 n ANT °5 R-3-H -C-S-H Mission College Prep z ce R-3 QP`'`� R-3- -MU R- H R-3 PF- Rti3 PF-H y1h.e 0 z , OmH 5 O-H $� z PF-H C-C � 6 V V — - — -O-Cf- ms's * C-C-H6 �� - -H 01M To USER N The bldh9ng laestlem and masher of mita , dmwe on these auqm m.,not be aeesshte ase City of San US OBI SPO p' E as9aet the bo d lotus and should be used as a rohmenwonl1• t vvooe�.s...voavo�rc.eooeiwsm��xxoame uvxwaim L S Z0 0 20 40 JUNE 1999 PLANNING DEPARTMENT ATTACHMENT 2 MEMORANDUM OF AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO LITTLE THEATRE REGARDING PROVISIONS OF A PROPOSED LEASE OF REAL PROPERTY AT 630 MONTEREY STREET FOR THE PURPOSE OF CONSTRUCTING A COMMUNITY THEATER ON THE SITE This agreement, entered into this day of , is made by and between the City of San Luis Obispo, a California charter municipal corporation ("the City') and San Luis Obispo Little Theatre,a non-profit Cafrfomia corporation, ("SLOLT"). RECITALS WHEREAS, the City is the legal owner of the property located at 630 Monterey Street in San Luis Obispo; and WHEREAS; the City wishes to support community-based performing arts groups by encouraging development of a live theater facility in the downtown; and WHEREAS, the City considers the development of a not-for-profit community based theater on the above property to be in the public interest and in accordance with the Citys goals and the Conceptual Physical Plan for the City's Center,and WHEREAS, the City and SLOLT recognize that having an identified location for a live theater facility may be helpful in fundraising efforts; NOW, THEREFORE, in consideration of the mutual covenants, conditions, promises and agreements herein set forth, the City and SLOLT hereby agree to the following provisions relating to the construction of a community theater by SLOLT on the 630 Monterey Street site: AGREEMENT PROVISIONS 1. Execution and Term of Proposed Lease. At such time as SLOLT demonstrates that it is ready to proceed with construction of the facility contemplated herein, the City will enter into a lease of the property located at 630 Monterey Street (as shown on Exhibit 1)to SLOLT, beginning with the start of construction and ending forty years later on December 31. SLOLT will be given a first right to negotiate an additional term. SLOLT shall submit any notice of interest in an extended term, one (1)year prior to termination of the base term of the lease agreement. 2. Potential Site Change. Should the property located at 614 Monterey Street, which is currently in private ownership, become available to the City prior to the time that SLOLT finalizes its construction design, SLOLT will work with the City to relocate the site for the theatre to the property located at 610 and 614 Monterey Street. 3. Rent. The rental rate shall be fixed at$1 per year for the term of the lease. 4. Land Use/Zoning Issues. Upon approval of this agreement, the City will initiate a General Plan Amendment and rezoning of the property and other actions necessary to accommodate this type of use. These actions will be initiated during the next opportunity to amend the General Plan, but in no case later than sic months prior to commencement of construction. The City will make such efforts as are reasonably necessary to accomplish such amendment or rezoning, recognizing that the City cannot make a binding commitment to act in its legislative capacity in advance. 5. Parking Issues. Prior to the final action on General Plan Amendment and rezoning of the property, the City and SLOLT will meet to resolve any issues arising from loss of the parking currently allowed on the property,as well as other standard parking requirements for the proposed use. - 1 - C9-4 6. Construction Permits. SLOLT shall be responsible for obtaining all necessary permits and paying all appropriate permit fees prior to construction, and will assure that construction conforms with the Citys current planning and building processes and codes. 7. Approval of Public Works Director. -in addition to the usual design review process, the Public Works Director must approve the final theater design to assure its compatibility with the possible future construction of a parking structure on adjacent property. 8. Compatibility with Neighboring Uses. In developing its design, SLOLT will make every effort to ensure compatibility with neighboring uses, especially those of residential or historical significance. 9. Condition of Property. SLOLT agrees to take property as is, except for unknown subsurface toxic or hazardous materials which shall remain the responsibility of the City. 10. Development and Operation of Facility. Prior to construction, SLOLT agrees to lease the subject property and to develop, operate and maintain the facility and premises on the proposed site for the term of the lease. The City shall have no obligation for development, operation or maintenance of the proposed facility and surrounding premises. Any costs incurred for development, operation or maintenance of the facility and premises shall be the sole responsibility Of SLOLT. 11. Use of Facility by Other Organizations. In recognition of the below market lease, SLOLT agrees to make the facilities available without fee to the City for official or City-sponsored uses. In addition, SLOLT agrees to make the facilities available to other non-profit community groups. Provisions of the future lease will define the usage by the City and other groups relative to SLOLT's performance needs, including such issues as rental fees,timing and liability. 12. Use of Property. The property shall be developed only for that purpose stipulated in this Agreement, unless the City, in its sole discretion, approves other uses, in writing. 13. Fundraising Plan. SLOLT agrees to prepare a fundraising plan by November 30, 2000, that will demonstrate to the City's satisfaction SLOLT's ability to raise the amount needed to construct a theater facility within the time frame set out in this agreement. 14. Use of Agreement for Fundraising Purposes. For fundraising purposes, the City acknowledges SLOLT's right to use this agreement as a reflection of the Cfty's commitment to the 630 Monterey site as the location for the new theatre. 15. Failure to Adequately Fundraise. If after three (3)years of the effective date of this agreement, SLOLT cannot demonstrate it has raised or otherwise has the funds committed to cover two-thirds of the construction costs of the building, then the City shall have the right, at its sole discretion, to terminate this agreement. 16. Design and Construction Schedule. Except for "acts of God° and mutually agreed upon excusable delays, SLOLT will use due diligence to adhere to the design, planning, and construction schedule attached to this agreement as Exhibit 2. The City reserves the right to grant time extensions or to cancel this Agreement for failure to progress on this schedule, where failure results from reasons other than those listed above in this paragraph. The schedule will commence upon approval of this Agreement by all parties. 17. Indemnification. SLOLT will agree to indemnify and hold harmless the City, its officers, agents, and employees against any and all claims asserted or liability established for damages or injuries to any person or property, including injury to SLOLTs employees, agents, officers or volunteers, which arise from or are connected with or are caused or claimed to be caused by the acts or omissions of SLOLT and its agents, officers, employees or volunteers which arise out of this Memorandum of Agreement, and all expenses of investigating and defendng against same; provided, however,that SLOLT's duty to indemnify and hold harmless shall not include any claims -2- C9-5 or liability arising from the establish sole active negligence or willful misconduct of the City, its agents officers or employees. At such time as City and SLOLT are ready to enter into a lease agreement, SLOLT shall provide indemnification acceptable to City, as part of that lease agreement, for the development, construction, operation and maintenance of the facility and premises. 18. Non-Discrimination. There shall be no discrimination against or segregation of any person or group of persons on account of race, religion, sex, sexual orientation, national origin, age, physical, mental or economic status in the construction, operation, lease, sublease, use, occupancy, tenure or enjoyment of the Property or the improvements thereon, or any part thereof, and SLOLT, or any person claiming under or through it, shall not establish or permit any such practice of discrimination or segregation with reference to the construction of the Project Improvements, or the selection, location, number, use or occupancy of employees, contractors, subcontractors, laborers or materialmen, tenants, lessees, subtenants, sublessees, invitees or vendees of the Property or the improvements thereon, or any part thereof. SLOLT shall not restrict access or use of the Property or the improvements thereon, or any portion thereof, on the basis of race, religion, sex, sexual orientation, national origin, age, physical, mental or economic status of any person. 19. Assignment. SLOLT shall not assign this agreement to another party without the City's prior written consent,which may be denied at the Citys sole discretion. 20. Entirety and Integrity of Agreement. This document represents the entire Agreement between the City and SLOLT. This Agreement may be amended only by written instrument executed by both the City and SLOLT. 21. Notices. All official notices required under this agreement shall be given in writing and submitted by certified mail, postage prepaid,and addressed as follows: City. City Cleric City of San Luis Obispo 990 Palm Street San Luis Obispo,CA 93401 SLOLT: President San Luis Obispo Little Theatre P.O. Box 122 San Luis Obispo, CA 93406 22. Authority to Execute Agreement. Both City and SLOLT do covenant that each individual executing this agreement on behalf of each party is a person duly authorized and empowered to execute Agreements for such party. IN WITNESS WHEREOF, the parties have caused this instrument to be executed the day and year first above written. ATTEST: CITY OF SAN LUIS OBISPO, A Municipal Corporation: Lee Price, City Clerk Allen K. Settle, Mayor -3 - C9-6 APPROVED AS TO FORM: SAN LUIS OBISPO LITTLE THEATRE: r rge en, Att ey President, Board of Directors Co-Chair, Capital Campaign Co-Chair, Capital Campaign -4- C9-7 . EXHIBIT 1 k� o ' � o i � IY I _ ' y Q 24/, 1, rlr, z I///e --rZ, C O SA UIS O SPO GEODATA SERVICES 95S MORRO STREET SAN LUIS OBISPO,CA 93401 (805)781-7167 02/18/00 08:42 C9-8 San Luis Obispo Little Theatre Design, Planning, and Construction Schedule Phase I Application, project description, environmental 9 months review, and schematic design and City approvals Phase II Design development and final approvals 2 months Phase III Working drawings 4.5 months Phase IV Plan check and recheck 2.5 months Phase V Construction bidding 1 month Phase VI Construction 12 months Total (design, planning, and construction) 31 months C9-9