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HomeMy WebLinkAboutCC Meeting 11-14-07 (Reso 105-2007)RESOLUTION NO. 105-2007 CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION AMENDING THE FINGERS GROUND LEASE BETWEEN THE CITY OF SOUTH SAN FRANCISCO AND REST INVESTMENTS, INC. WHEREAS, the City is responsible for building and maintaining infrastructure that is essential to building and preserving the economic and social well-being of its residents and businesses of the City; and WHEREAS, in 2001 REST Investments, Inc. ("REST") successfully constructed a 1,100 car parking structure on the "Fingers" property (more particularly described in Exhibit A) adjacent to the Tillo site, and a surface parking lot, through a lease agreement with the City and to the City's satisfaction, and WHEREAS, based. on its success, the City approved the subsequent lease with REST for the Tillo property for purposes of developing a second multi-level commercial parking facility for airport patrons; and WHEREAS, the construction of the commercial parking facility is to occur in two phases: (1) REST will construct an at grade parking facility with parking capacity for 161 cars; 2) REST will construct amulti-story commercial parking facility for 1,400 to 1,450 cars; and WHEREAS, the City will collect parking tax, property tax, and permit fee revenue from the new facility; and WHEREAS, while most of the new parking structure would sit on the Tillo portion of the property, a portion of the structure is set to sit on the "Fingers" property; and WHEREAS, REST has requested that the City modify the "Fingers" lease term so it runs concurrently with the Tillo lease term and remove the City's ability to terminate the "Fingers" lease until 2067. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco does hereby: 1. Approve the "First Amendment to the Fingers Ground Lease" by and between the City of South San Francisco and REST Investments, Inc., as set forth in Exhibit B, attached hereto; and 2. Authorize the City Manager to sign and execute, on behalf of the City, the First Amendment to the Fingers Ground Lease, attached hereto as Exhibi ~ B. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a regular City Council meeting held on the 14th day of November, 2007 by the following vote: AYES: Councilmembers Mark N. Addiego Joseph A. Fernekes and Karyl Matsumoto, Vice Mayor Pedro Gonzalez and Mayor Richard A. Garbarino NOES None ABSTAIN: None ABSENT: None ATTEST: - `'t~ ~" Irene So o, Interim City Clerk EXHIBIT B FIRST AMENDMENT AMENDING THE GROUND LEASE BETWEEN THE CITY OF SOUTH SAN FRANCISCO AND REST INVESTMENTS DATED JUNE 12, 1998 THIS AMENDMENT TO THE GROUND LEASE AGREEMENT is made at South San Francisco, California, as of , 2007, by and between the CITY OF SOUTH SAN FRANCISCO, a municipal corporation ("City" or "Landlord") and REST INVESTMENTS ("Tenant"), who agree as follows: RECITALS: A. On June 12, 1998, City and Tenant entered into that certain Ground Lease for the Fingers property (the "1998 Lease") pursuant to the terms of which City leased to Tenant certain real property situated in the City of South San Francisco, County of San Mateo, State of California (the "Premises"), as more particularly described therein. B. On October 16, 2006, City and Tenant entered into a separate Ground Lease for the Tillo property (the "2006 Lease") pursuant to the terms of which City leased to Tenant certain real property situated in the City of South San Francisco, County of San Mateo, State of California (the "Tillo Property"). C. Landlord and Tenant now desire to amend the 1998 Lease to align with and reflect the term of the 2006 Lease. NOW, THEREFORE, for and in consideration of the promises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant hereby agree as follows: 1. All terms which are defined in the 1998 Lease shall have the same meaning when used in this Amendment, unless specifically provided herein to the contrary. 2. This Amendment modifies the Term in Section 2.1 of the 1998 Lease. The Initial Term shall be thirty-nine (39) full calendar years, commencing June 12, 1998 ("Lease Commencement Date"), and ending on June 11, 2037 unless extended or sooner terminated as provided for in the 1998 Lease. All other provisions of Section 2.1 of the 1998 Lease remain in full force and effect. 3. Section 2.2 of the 1998 Lease is hereby deleted and replaced in its entirety with the following: 2.2 Initial Term Extension. Conditioned upon Tenant's compliance with all terms and obligations set forth in this Lease and the 2006 Lease the Option Period shall be one (1) additional term of thirty (30) years, the Initial Term Extension, subject to all the provisions of the 1998 Lease. 4. Section 2.3 of the 1998 Lease, titled "Notice of Additional Rental Periods" shall be moved and relabeled Section 2.4. 5. Section 2.3 of the 1998 Lease is replaced in its entirety with the following: 2.3 Additional Extension. Conditioned upon (1) Tenant's compliance with all terms and obligations set forth in the 1998 Lease; and (2) completion of construction of a multi-level parking structure on the Land, as it is defined in the 2006 Lease, Tenant may extend the Initial Term Extension of the Lease, as granted in Section 2.2, for one (1) additional period of thirty (30) years.. 6. The 1998 Lease, as amended hereby, is ratified and confirmed by all the parties as being in full force and effect. To the extent of any conflict between the terms and provisions of the Lease and this Amendment, the terms and provisions of this Amendment shall govern and control. Landlord and Tenant hereby acknowledge, confirm and agree that, as of the date of this Amendment, to such parties' respective knowledge, no known disputes exist between Landlord and Tenant, neither Landlord nor Tenant is in default under the terms of the Lease and the Lease is in full force and effect. This Amendment is binding on the parties and their successors and assigns. IN WITNESS WHEREOF, this Amendment is being made and entered into effective as of the -day of , 2007. LANDLORD" CITY OF SOUTH SAN FRANCISCO, a municipal corporation By: Name Its: Barry M. Nagel City Manager TENANT" REST INVESTMENTS By: Name: Its: