HomeMy WebLinkAboutReso 100-1997RESOLUTION NO. 100-97
CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA
A RESOLUTION APPROVING A JOINDER TO THE GROUND LEASE
BETWEEN THE CITY, THE SAN MATEO COUNTY HARBOR DISTRICT,
AND RAISER RESOURCES LLC, RELATED TO PROPERTY AT THE
OYSTER POINT MARINA
WHEREAS, Raiser Resources LLC desires to construct a hotel at the Oyster Point Marina; and
WHEREAS, the City and San Mateo County Harbor District have entered into a joint powers
agreement to manage the property at the Oyster Point Marina; and
WHEREAS, the City desires to approve a Joinder and First Amendment to the Ground Lease
between the San Marco County Harbor District and Raiser Resources;.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco
as follows:
1. The City Council approves the amendment to the Ground Lease and the Joinder, both of
which are attached hereto as Exhibit "A" related to the Raiser Resources development at the Oyster Point
Marina.
the City.
The City Council further authorizes the City Manager to execute the Joinder on behalf of
* * * * *
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 to011 ] a r meeting held on the 27th day of_
Au.qust ,1997 by the following vote:
AYF_3: Counci 1 membe r.~
Penna, Bob Yee
NOES: None
ABSTAIN: None
ABSENT: None
C:U~ODEM~,RAISER.CC
,lammq I. liar?man, Eugene R. Mullin, John R.
and Mayor Joseph A. Fernekes
ATTEST:
EXHIBIT A TO RESOLUTION NO. 100-97
FIRST AMENDMENT TO GROUND LEASE
This First Amendment to Ground Lease made and entered into as of
,1997 by and between San Mateo County Harbor District
("Landlord") and Raiser Resources, LLC, a California limited liability company,
("Tenant"), bears the following recitals:
A. On or about January 30, 1997 the parties entered into a Ground Lease
covering certain premises in the City of South San Francisco for the purposes of
constructing a hotel as described therein.
provided.
The parties now desire to amend the Ground Lease as hereinafter
NOW, THEREFORE, the parties hereto agree as follows:
1. The Lease xvas entered into on January 30, 1997.
The first recital is amended to change forty-nine (49) years to fifty-five
(55) years.
3. Exhibit A to the Ground Lease is hereby replaced by Exhibit A- 1
attached hereto.
follows:
Add the following definition to Section 1:
"City: the City of South San Francisco."
The second sentence of Section 2.1.2 is hereby amended to read as
"Landlord may, but is not required to, resolve any difference or conflict
which may arise between Tenant and other tenants operating enterprises
in the vicinity of the Premises."
6. Notwithstanding anything contained in Section 2.2, the Lease Term
shall not commence until City has issued all discretionary land use approvals for the
Project.
7. The first sentence of Section 3.1 is hereby amended to read as follows:
"Commencing on the first day of the month following the
issuance of a building permit, or on January 1, 1998, whichever is
the first to occur, Tenant shall pay Landlord Minimum Rent of
One Thousand Dollars ($1,000.00) per month."
8. Tenant shall have until September $0, 1997 to submit to Landlord the
statement of requirements for correction of defects in title or physical defects.
9. Section 8.5 is hereby amended in its entirety to read as follows:
8.5
Any Hazardous Material or Contamination, as defined by any
governmental agency having jurisdiction over the Premises, found
during or subsequent to the construction of the project which is
not a result of any act of Tenant or caused by Tenant or any
agency, employee, contractor, subtenant, licensee or contractor of
Tenant shall be the responsibility of the owner of the property to
mitigate to the extent required by a governmental agency with
regulatory jurisdiction over the Premises, provided that as long as
the District remains landlord, it shall be responsible for
remediation to the extent that such hazardous material or
contamination remediation costs are related to the repair and
maintenance of the Leachate system constructed pursuant to
Section 16, subsection (c) of the Joint Powers Agreement dated
July 6, 1977, provided, however, that improvement work beyond
the scope of said leachate system constructed pursuant to the
Joint Power's Agreement shall be the responsibility of the owner
of the property.
10. The first sentence of Section 9.1 is hereby amended to read as follows:
"Within ninety days (90) from tile date the City of South San Francisco
executes the Joinder to this Lease, Tenant agrees to prepare and deliver to
Landlord, for reviexv, schematic drawings of the Facility to be constructed on
the Premises."
1 1. The first sentence of Section 9.9 is hereby amended to read as follows:
"Tenant shall procure a Performance Bond ("Bond") to ensure that in the
event Tenant fails to complete construction of the Facility and Landlord directs
Tenant to demolish the Facility and retum the Premises to substantially the
condition as of the Effective Date, Tenant will do so."
12. Section 12.2 is hereby amended in its entirety to read as follows:
"Tenant agrees to indemnify Landlord and City, its elected officials, officers,
employees and agents against, and save harmless and defend said parties from,
all demands, claims, attorneys fees causes of action or judgments for injury to
person, loss of life or damage to property occurring on said Premises and
arising out of Tenant's use and occupancy thereof and not arising out of the
negligence, or willful, or intentional misconduct of Landlord, City, or its
elected officials, officers, employees and agents."
13. The word "City" shall be added after the word "Landlord" in line 4 of
Section 13.1 and after the word "Tenant" in line 4 of Section 13.2.
14. The second sentence of Section 15.2 is hereby deleted.
15. The words "and improvements to the condemning agency" shall be
deleted from the first paragraph of Section 15.3.
16. The following language shall be added to Section 15.3:
"In the event the condemning agency is neither City nor Landlord, then the
award shall be distributed in the following order of priority:
First, all real ,and personal property taxes constituting a lien on the property or
the improvements:
Second, to Landlord and City, collectively, an amount equal to the fair market
value of the real property excluding the Improvements, subiect to the terms of
this lease;
Third, the balance due under any note secured by a leasehold mortgage to
which the fee is not subordinated;
Fourth, if the fair marl<et value of the improvements exceeds the amount
payable to the leasehold mortgagee as provided above, from the balance of the
award, if any, such excess amount shall be allocated to. Tenant in the
proportion that the number of years (including any fraction of a year) of the
Term then unexpired bears to fifty five, and the balance shall be allocated to
Landlord and City, collectively;
Fifth, the bonus value of this Lease, if any, shall be divided among the
Landlord, City and Tenant. The share of the Tenant shall be a portion.that
the number of years (including any fraction of a year) of the Term then
unexpired bears to fifty five. The balance shall be awarded to City and
Landlord, collectively; and
Sixth, any balance to Landlord and City, collectively.
For purposes of this paragraph wherever there is reference to a portion of a
condemnation award being paid to Landlord and City, collectively, the amount
payable (the "Proceeds") shall be allocated between Landlord and City as follows:
There shall be distributed to Landlord an amount equal to the amount of rent
Landlord would have received from the Lease for the number of years
unexpired on the Joints Powers Agreement, or any extension thereof to be paid
on an annual basis and not to exceed the condemnation award received
collectively by City and Landlord.
In the event the parties are unable to agree upon any of the valuations required
to distribute a condemnation award under this Article 15, each patty will appoint an
appraiser and the two appraisers so appointed shall select a third appraiser and the
three appraisers so selected shall make the determination(s) of value. If the appraisers
are unable to agree, the valuation in dispute shall be determined by averaging the
three valuations of the appraisers. Each appraiser shall be MAI qualified and shall
have not less than five (5) years experience in appraising commercial real estate in
San Mateo County."
17. The last sentence of 19.3 is amended to read as follows:
"If this contingency is not satisfied or xvaived by Tenant xvithin 270 days after
the Joinder to this Lease is executed by City, this Lease shall terminate."
18. The first paragraph of Section 18 is hereby amended by adding the
following sentence to the end of the paragraph:
For purposes of Section 18, the term "Landlord" shall
include the San Mateo County Harbor District and the
City of South San Francisco."
In addition, the reference to fifty (50) percent in the second paragraph of
Section 18 shall be modified to twenty (20) percent.
Subject to the foregoing amendments, the Lease remains in full force and
effect.
IN WITNESS WHEREOF, the Parties have executed this Lease on the day
and year first above written.
SAN MATEO COUNTY HARBOR DISTRICT
DATED: By:
TENANT: RAISER RESOURCES, LLC
DATED: By:
A:~g~ISER2~ID