The URL can be used to link to this page

Home My WebLink About11/21/2000, C3 - AMENDMENT OF YMCA GROUND LEASE AT JOHNSON PARK council Meetin¢Date j acEnaa nEpont ,temHa��3 CITY OF SAN LUIS OBISPO FROM: aul LeSage,Director of Parks and Recreation SUBJECT: AMENDMENT OF YMCA GROUND LEASE AT JOHNSON PARK CAO RECOMMENDATION By resolution, adopt Amendment No. 2 to the Ground Lease between the City of San Luis Obispo and the San Luis Obispo County YMCA for use of a portion of Johnson Park. DISCUSSION Background Since 1981, the San Luis Obispo County YMCA has leased a portion of the Johnson Park site located at 1020 Southwood Drive. On this site, the YMCA's headquarters facility is located. The YMCA staff has proposed four amendments to the current lease that governs their use of the site. City staff has also proposed an amendment that brings the agreement into compliance with City non-discrimination policies. The first amendment proposed by the YMCA (Article II, Paragraph 2.02) extends the lease for five years to 2033. This would allow the YMCA to receive favorable terms on a refinance of their building purchase loan. The extension to 2033 is the maximum allowed by the City Charter. The second amendment (Article III, Paragraph 3.01) concerns the use of the building. Originally, this was a private racquetball club, and the lease reflected that use. When the YMCA assumed the lease in 1981, the lease was not amended to reflect the programs offered by the YMCA. While a portion of the facility is used for racquetball, there are many other programs and services provided on the premises. The amendment will reflect the current use. The third amendment revises Article V of the lease that governs the rates charged for use of the racquetball courts. The current lease does not allow monthly membership fees and provides a procedure for determining hourly rates for court play. The YMCA is a membership organization that has traditionally charged a monthly fee. The racquetball courts are available to YMCA members as part of their membership fee. This amendment eliminates the procedures regarding hour and court fees and allows the YMCA to charge reasonable monthly membership fees. The fourth amendment to the agreement changes Article III, Paragraph 3.01 (Use and Occupancy) to reflect the current use of the facility which is programs related to health and fitness, childcare, family activity, and community development. These are essentially the same programs the YMCA has been operating at the site since 1981. C3-1 Couneil Agenda Report—Amendment of YMCA Ground Lease at Johnson Park Page 2 The final amendment to the lease adds Paragraph 3.04 to Article III. This is the City's non- discrimination policy. In summary, it can clearly be seen that these are "clean up" amendments to the YMCA lease that reflects current practices. The amendments allow the YMCA to continue their mission of providing quality services to the community with no effect to the City as lease holder. FISCAL EUPACT There is no fiscal impact to amending the YMCA lease. ATTACIIMENT 1. Resolution Exhibit A Amendment 2 to the Lease 2. Legislative Draft of Amendment 2 C3-2 Attachment I RESOLUTION NO. (2000 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO ADOPTING AMENDMENT NO. 2 TO THE GROUND LEASE BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO COUNTY YMCA FOR USE OF A PORTION OF JOHNSON PARK WHEREAS, the San Luis Obispo County YMCA has leased a portion of Johnson Park since 1981; and WHEREAS,the leased property contains the YMCA's headquarters facility; and WHEREAS, the YMCA has traditionally offered a variety of programs at the facility such as: health and fitness, childcare, family activities, and community development; and WHEREAS, these programs are acknowledged to be a valuable community service; and WHEREAS, the proposed amendments to the lease will make it consistent with the current uses. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. The lease agreement is amended pursuant to Amendment No. 2, as set forth in Exhibit"A," and the Mayor is authorized to execute it. SECTION 2. All other terms and conditions of the lease remain in effect. Upon motion of , seconded by , and on the following roll call vote: AYES: NOES: ABSENT: the foregoing resolution was adopted this day of , 2000. Mayor Allen Settle C3-3 ATTEST: Lee Price, CityClerk ' APPROVED AS TO FORM: 1111xm J fr G,J r& Attorney I. C3-4 Exhibit A AMENDMENT NO. 2 GROUND LEASE BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO COUNTY YMCA The Ground Lease, dated December 31, 1977, between the CITY OF SAN LUIS OBISPO, a municipal corporation, hereinafter referred to as "CITY"and the SAN LUIS OBISPO COUNTY YMCA hereinafter referred to as "TENANT"is hereby amended as follows: ARTICLE II. TERM OF LEASE AND EXTENSIONS OF LEASE TERM 2.02 The term "commencement date" as used in this Lease means March 1, 1978. CITY and TENANT agree to extend the TERM of this Lease for an additional five (5) calendar years beyond the original tern set forth in Section 2.01, above. Accordingly, the TERM shall expire at midnight on February 28, 2033,unless sooner terminated in accordance with the provisions of this Lease. ARTICLE III. USE AND OCCUPANCY. 3.01 During the TERM of this Lease, TENANT shall, at TENANT'S sole expense, construct, occupy and operate on the LEASED LAND a public which will include four-walled racquetball/handball courts, men's and women's locker facilities, and other fitness facilities. TENANT may use the facilities for programs related to health and fitness,child care, youth, family and community development. TENANT shall have the right to provide facilities for a snack bar and alcoholic beverages for on-premises consumption only. The plans and specifications for all the above-mentioned facilities must be submitted for approval as required in the usual permit procedures of the CITY OF SAN LUIS OBISPO before construction may begin. 3.04 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 LEASED LAND or the improvements thereon, or any part thereof, and TENANT, or any discrimination or segregation with reference to the construction of the 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 LEASED LAND or the improvements thereon,or any part thereof. TENANT shall not restrict access or use of the LEASED LAND 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. C3-5 ARTICLE V. RATES. 5.02 All rates and charges to patrons served on or from the leased premises shall be reasonable and consistent with the quality of the services and facilities offered. 5.03 TENANT shall have sole authority to establish the rate structure for court play so long as any rate charged is reasonable. TENANT shall have sole authority to establish rate and price structures for its other facilities and services. 5.04 TENANT may charge a reasonable initiation, membership or similar fee for the use of TENANT'S facilities. All other terms and conditions of the Ground Lease remain the same. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed on the day of 12000. ATTEST: CITY OF SAN LUIS OBISPO A Municipal Corporation Lee Price, City Clerk Mayor Allen Settle APPROVED AS TO FORM: LESSEE: *Joe4ns , C' Attorney Karen Aydelott, YMCA C3-6 Attachment 2 PROPOSED SECOND AMENDMENT TO YMCA LEASE ARTICLE 11. TERM OF LEASE AND EXTENSIONS OF LEASE TERM. 2.01 The term of this Lease hereinafter referred to as "TERM," shall be for a period of fifty (50) calendar years, commencing on the date a building permit is granted and issued permitting the construction of the improvements described in ARTICLE III, and expiring, unless sooner terminated, at midnight on the last day of the fiftieth year. ..At4m date" > 1979, ; 2.02 The term "commencement date" as used in this Lease means March 1, 1978. CITY and TENANT agree to extend the TERM of this Lease for an additional five (5) calendar years beyond the original term set forth in Section 2.01, above. Accordingly, the TERM shall expire at midnight on February 28, 2033, unless sooner terminated in accordance with the provisions of this Lease. ARTICLE III. USE AND OCCUPANCY. 3.01 During the TERM of this Lease, TENANT shall, at TENANT'S sole expense, construct, occupy and operate on the LEASED LAND an indee Lpublic msguetba"an ll facility which will include nine. four-walled racquetball/handball courts, a pro Sh9P se4ing supplies, men's and women's locker facilities, and other fitness facilities . TENANT may use tlme facilities for programs related to health and fitness, child care, youth, family and community development. TENANT shall have the right to provide facilities for a snack bar and alcoholic beverages for on-premises consumption only. The plans and specifications for all the above- mentioned facilities must be submitted for approval as required in the usual permit procedures of the CITY OF SAN LUIS OBISPO before construction may begin. 3.04 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 LEASED LAND or the improvements thereon, or any part thereof, and TENANT, or any discrimination or segregation with reference to the construction of the 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 LEASED LAND or the improvements thereon, or any part thereof. C3-7 TENANT shall not restrict access or use of the LEASED LAND 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 ARTICLE V. RATES. 5.01 TENANT shall at all times maintain and post a schedule of the prices charged for court usage supplied to the public on or from the leased premises whether the same are supplied by TENANT or by sublessees, assignees, concessionaires, permitees, or licensees and shall make said schedule available to CITY upon CITY'S written request. 5.02 All rates and charges to patrons served on or from the leased premises shall be reasonable and consistent with the quality of the services and facilities offered. The maximum allowabie, per per-sea time rate.. f9r. Gglig URA that may be, eharged by TENAN:� shall not eyweed the aver-age Person ti-m-e- mte r-- -g .— up to thG ReaFest on quarter- dollar-, Of 09t less than thme-eempar-able, mequetbalPhan to by GP:T; .,,,d1 TPEN_ A RPT The ro ria tl. ♦ may b 1, d 1_ TENANT ATT L ll be r:.in ,,,.,.MU' ..a Subsequentc�ange-in said mtg shall bg shall be determined the samr. kh the Ll J f rilitiec to lie ..l,..ne.. 1, the h• Fer- caGh 1, J In- t-h-a- event t-he paFties rannet at any time agree on 414r. designation of not less e' paFt.,J shall h neutral third> 1, r pmen t9 aGt as an arbitrater in the matteT, the, twe neutral third per-sons so --hesen shall meet and piek a thirA r and th@ thme pesens thus Ghesen shall desilp-ate. not less than tkGo remparzable 5.03 TENANT shall have sole authority to establish the rate structure for court playso long as any rate charged is reasonable. se I—as-ai��rat€r '�^r^�a F rt a t tha Maximummte t "e`' ' nde't'' F '' ` ^'. TENANT shall have sole authority to establish rate and price structures for its other facilities and services. -5.0-4- 4T5� may not have and may not l,nrge a initiation, mGmb 1,' er- •1 foe, for- tom >}se of TENANT'S fasilitiAR. TEXIArrr 1 FF , l a4le..ing high fFeque r i�tFeas o f T-Ok ANIT'S F 9•t' t L 1 t N:T 4EN an the CITY OF SAN 1.r 49 OBISPO may 1 1, ,1 1 league 1 ay and tgumamePA pFeg s, Oasses, Gll$}G6 and 091OF-44arr 8GtMt}G6 Pteyi&5 howoTvr-, at all times tl me el��7 „rts *411 l.e available for-genera4 public, use t l t ' t t t �tt g,.e-play. 5.04 TENANT may charge a reasonable initiation membership or similar fee for the use of TENANT'S facilities. C3-8