CITY COUNCIL: Resolution Approving Amendment to Land Leasehold Agreement Between Carmel Youth Center & City of Carmel-by-the-Sea

City Council
Agenda Item Summary

Name: Consideration of a Resolution approving an amendment to the existing land leasehold agreement between the Carmel Youth Center and the City of Carmel-by-the-Sea.

Description: The City owns property on the SW corner of 4th and Torres. The Carmel Youth Center (CYC) has operated from this property since October 4, 1949 when the original lease was approved by the City Council. The CYC Board has requested an additional 10 years to lease the above City property at the cost of $1 per year. Attached is a fifth amendment to the original leasehold for consideration. The City Attorney has reviewed the proposed amendment.

Overall Cost:
City Funds: $1 per year paid to the City
Grant Funds: N/A

Staff Recommendation: Adopt the Resolution.

Important Considerations: The Carmel Youth Center has operated successfully from the 4th and Torres property since 1949. Their programs provide a safe environment for the Carmel area youth to interact on a variety of activities which are educational. The City has no other use for the property at this time. More recently, the Council has authorized along with the CYC Board to designate the Center as emergency response assistance center.

Decision Record: The City Council approved the original leasehold on October 4, 1949. Since this time, the City Council has approved four amendments to the leasehold. The fourth amendment was approved on October 5, 1999.

Reviewed:

Rich Guillen, City Administrator Date

CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL
RESOLUTION 2011-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA APPROVING AN AMENDMENT TO THE EXISTING LAND LEASEHOLD AGREEMENT BETWEEN THE CARMEL YOUTH CENTER AND THE CITY OF CARMEL-BY-THE-SEA

WHEREAS, the City owns property on the SW corner of 4th and Torres, in which the Carmel Youth Center (CYC) has operated since October 4, 1949; and

WHEREAS, the CYC Board has requested an additional 10 years to lease the above City property at the cost of $1 per year; and

WHEREAS, their programs provide a safe environment for the Carmel area youth to interact on a variety of activities which are educational; and

WHEREAS, the City has no other use for this property at this time.

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA DOES:

1. Approve the amendment to the existing lease landhold agreement between the City of Carmel-by the Sea and the Carmel Youth Center.

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-
THE-SEA this 1st day of February 2011, by the following roll call vote:

AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:

SIGNED:

_______________________
SUE McCLOUD, MAYOR


_________________
ATTEST: Heidi Burch, City Clerk

FIFTH AMENDMENT AND RESTATEMENT OF LAND LEASEHOLD AGREEMENT BETWEEN CITY OF CARMEL-BY-THE-SEA AND CARMEL YOUTH CENTER, INC.

THIS LEASEHOLD AGREEMENT is made and entered into this 1st day of
February 2011, by and between the CITY OF CARMEL-BY-THE-SEA, A MUNICIPAL
CORPORATION, hereinafter referred to as “Lessor”, and CARMEL YOUTH CENTER,
INC., a nonprofit corporation, hereinafter referred to as “Lessee”.
This instrument amends and restates in its entirety the Land Leasehold Agreement
originally executed on October 4, 1949, and all subsequent amendments thereto.
W I T N E S S E T H:
In consideration of the rents and the performances of the other terms, covenants
and conditions herein contained, on the part of the Lessee to be performed, Lessor hereby
leases, demises and lets unto Lessee, and said Lessee hires and takes from Lessor, thre
premises situated in the City of Carmel-by-the-Sea, County of Monterey, State of
California, known as described as follows:
Lots 3 and 5 in Block 48 as per Map of “Carmel City, Monterey County,
Cal., surveyed by W.C. Little, April 1888”, filed for record May 1, 1888,
in the office of the County Recorder of the County of Monterey, State of
California, in Volume 1 of Maps, “Cities and Towns”, at page 52,
ALSO, the north half of Lot 7 in Block 48 as per Map of Carmel City,
Monterey County, Cal., surveyed by W.C. Little, April 1888, filed for
record May 1, 1888, in the office of the County Recorder of the County
of Monterey, State of California, in Volume 1 of Maps, “Cities and
Towns,” at page 52, reserving, however, to the City of Carmel-by-the-
Sea, a vehicular and pedestrian easement of way over said north half of
Lot 7 and under any construction that may be done by Lessee on said
property, said right-of way to be maintained open and free of
construction or other impediment to vehicular or pedestrian passage, said
unimpeded area to be of a dimension 10 feet wide and 12 feet high from
the ground level along said north one-half (1/2) of Lot 7.
ALSO, an additional parcel of land consisting of the northerly five (5)
feet of the southerly one-half (1/2) of Lot 7 in Block 48, as per Map of
Carmel City, Monterey County, California.
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for an initial term of ten (10) years commencing on the first day of November 2009, and
continuing, if not otherwise terminated, in accordance with the conditions herein
contained, until the 31st day of October 2019, said land to be rented at an annual rental
payable yearly in advance for the sum of ONE DOLLAR ($1.00) per year, commencing
as of November 1, 2009, and thereafter payable on the first day of each and every
succeeding year thereafter during the term of this Lease. Lessee can request an additional
ten (10) years commencing on the 1st day on November 2019 and continuing until the
31st day of October 2029 upon the mutual written agreement between the Lessee and
Lessor for the annual rate of ONE DOLLAR ($1.00) per year. Lessee agrees to pay all of
said rent to Lessor either by mail addressed to City of Carmel-by-the-Sea, PO Box CC,
Carmel-by-the-Sea, California 93921, or personally delivered to City Hall, City of
Carmel-by-the-Sea, State of California, between the hours of 9:00 a.m. and 5:00 p.m., or
at such other place as may be designated from time to time by the Lessor.
IT IS MUTUALLY AGREED that the above renting and taking is upon the
following terms and conditions:
FIRST
Lessee agrees not to sublet the whole or any part of the premises herein demised,
or assign this Lease or any rights hereunder, whether by voluntary or involuntary
assignment, without the prior written consent of the Lessor.
SECOND
Lessee shall procure, at Lessee’s own expense, on or before the date of the
commencement of the terms of this Lease, and shall maintain continuously during the
entire term thereof, public liability insurance in the amount of TWO MILLION
DOLLARS ($2,000,000) for the injury or death of any one person and FOUR MILLION
DOLLARS ($4,000,000) for injury or death of any number of persons in any one
accident, and property damage liability insurance of TWO MILLION DOLLARS
($2,000,000). All of said policies of insurance shall contain an additional insured
endorsement naming Lessor, its public officials, officers and employees herein and all
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other persons whom Lessor may be required to keep insured. All of said policies of
insurance shall be obtained from companies satisfactory to the Lessor and shall contain
an endorsement that such insurance shall not be cancelled without thirty (30) days prior
written notification to Lessor. Lessee shall deliver to Lessor certificates evidencing the
insurance coverage herein provided for. Lessee shall pay the insurance premiums on all
insurance coverage herein provided for when due.
THIRD
The demised premises shall be used for recreational purposes by youth and civic
and charitable organizations, provide, however, that the use by these latter groups shall
not interfere with the use of the premises by youth.
Lessee shall not rent to third parties any portion of the demised premises for
activities involving the use, sale, or consumption of alcoholic beverages.
FOURTH
In the event Lessee shall hold over the demised premises beyond the term herein
provided, without the written consent of the Lessor, such holding over shall be deemed to
be a tenancy from month to month at the annual rate of ONE DOLLSR ($1.00). Any
such holdover tenancy may be terminated at any time by either party hereto by not less
than thirty (30) days’ notice in writing mailed to Lessee (Carmel Youth Center) at PO
Box 2399, Carmel-by-the-Sea, California, 93921, or to Lessor at City Hall, City of
Carmel-by-the-Sea, PO Box CC, Carmel-by-the-Sea, California 93921.
FIFTH
The Lessee shall observe and comply with and perform and execute all federal, state, or
municipal statutes, ordinances, rules, regulations, and orders, and any and all regulations
and orders of any federal, state, or municipal board of public authority or officer which in
any way affect or relate to, or are applicable to, the demised premises by reason of the
Lessee’s use and occupancy thereof; and, the Lessee hereby agrees to indemnify the
Lessor and save it harmless from any and all liability that may arise from any
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infringement or violation of such statute, ordinance, rule, or regulation by the Lessee, or
by any of the Lessee’s employees, or by any other person who shall be upon the demised
premises with the Lessee’s consent.
SIXTH
It is agreed between the Lessee and the Lessor that said building and any
improvements thereto shall be in conformance with the laws and statutes of the City of
Carmel-by-the-Sea, of the County of Monterey, and of the State of California, and that
said building and any improvements thereon shall conform in design to a building which
will be satisfactory to Lessor, and that said Lessor will be held free and clear from any
and all liability whatsoever for the improvements to said building; and that said Lessee
shall have an option to renew this Lease for one (1) successive ten (10) year period upon
the same terms and conditions herein contained, said option for renewal to be exercised
no later than sixty (60) days prior to the expiration of the then existing term of this Lease.
All improvements, alterations and repairs are to be made at the expense of the Lessee,
and shall become the property of Lessor upon the termination of this Lease or any
extension thereof. Lessee hereby waives all right to make repairs at the expense of
Lessor, or to remove from the demised premises under the provision of Section 1942 of
the Civil Code of the State of California, or under the provisions of any other statute,
present or future, of the State of California, and further waives all rights provided by
Section 1941 of said Civil Code.
SEVENTH
Lessor, its agents, and authorized employees shall have the right, at all reasonable
time, to enter the demised premises, or any part thereof, for the purpose of inspection.
EIGHTH
Lessee shall have the right, in order to finance any and all improvements to the
building currently erected upon the demised premises, to enter into any deed of trust,
mortgage, or assignment of this Lease, in order to secure the repayment of said funds, and
in order to effect the building and financing of said improvements; and, Lessor agrees
that said Lessee may have peaceful and quiet enjoyment of said premises, subject,
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however, to the rental payments due hereunder; and, in the event said Lessee should
default and be unable to pay the balance due to any person, corporation or firm financing
said improvements, said premises would be liable for the balance due, and the
improvements built upon said premises shall not revert to Lessor until said balance has
been paid in full.
Should Lessee violate any of the term, conditions or covenants of this Agreement,
Lessor may either terminate this Lease without notice and take possession of the demised
premises, or may enter and possess the premises as agent for the Lessee and for its
account; subject, however, to the preceding terms and conditions in this Article EIGHTH.
In the event said Lessor enters and takes possession of said premises, as aforesaid, Lessee
waives any damages that may be caused by Lessor under such re-entering and taking
possession, and any claim or damage that may result from the destruction or injury to the
premises or building, and any claim or damage for loss of property belonging to the
Lessee which may be in or upon the premises.
NINTH
Lessee agrees promptly to pay for all water, light, power, refuse disposal, and any
other utility furnished to said demised premises shall hold over the demised premises
beyond the term hereof.
TENTH
In the event any of the demised premises should be destroyed in whole or in part
because of fire, act of God, or from any other cause whatsoever, the Lessee agrees to
rebuild and repair said premises, in order to put them in as good shape as they were at the
time of said destruction; and Lessee and Lessor hereby agree that all proceeds of any
insurance carried on said premises for such purposes shall go into the repair and
restoration of said premises, and, if the damage so caused makes it impossible for said
Lessee to use said premises during the time of said repairs and restoration, and prior
thereto, the agreed rental due hereunder shall be waived during such period. It is further
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mutually agreed that said repairs will be made immediately, and they shall be
commenced in a period not to exceed sixty (60) days after said damage has arisen.
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ELEVENTH
Should either party to this Lease bring legal action (formal judicial proceeding,
mediation or arbitration), the Superior Court of the County of Monterey, State of
California, shall be the situs and have jurisdiction for the resolution of all such actions by
the parties thereto, against the other party hereto for the breach of any term, covenant,
condition or obligation herein contained to be kept, by such other party, for the recovery
of any sue due hereunder, or to recover possession of the premises, or for any summary
action for forfeiture of this Lease or to prevent further violations of any of the terms,
covenants, conditions or obligations, or for any other relief then and in that event, the
prevailing party in each suit or summary action shall be entitled to a reasonable attorney’s
fee in accordance with the customary and prevailing rates for such services and shall be
fixed by the judge, mediator or arbitrator hearing the case and further such fee shall be
included in the judgment, together with all costs.
TWELFTH
Lessor shall not be liable for any loss or damage that may result to any property
belonging to the Lessee, located in, on or about said premises from any cause whatever,
nor shall Lessor be liable for any damage or injury to any person or any property
occurring or arising in, on or about said premises from any cause whatever. Lessee
hereby covenants to save and hold Lessor harmless from, and to defend and indemnify
Lessor against, any suit or claim or demand for damage or injury to any person or
properties sustained in, on or about the premises from any cause whatever during the
term thereof.
THIRTEENTH
The waiver by Lessor of any breach of any term, covenant, or condition herein
contained shall not be deemed to be a waiver of any subsequent breach of same, or any
other term, covenant, or condition herein contained.
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8
FOURTEENTH
This Lease and the interests of the Lessee hereunder shall not, without the written
consent of Lessor first had and obtained, be subject to garnishment or sale under
execution in any suit or proceeding which may be brought against or by Lessee, and it is
agreed that should Lessee become insolvent, or should Lessee be adjudged a bankrupt,
wither by voluntary or involuntary proceedings, or should Lessee make an assignment for
the benefit of creditors or make any application for an extension in accordance with the
provisions of the Bankruptcy Act, this Lease shall, at the option of the Lessor,
immediately terminate and Lessor shall have the right immediately to re-enter the said
premises, and in no event shall this Lease be, or be treated as an asset of, Lessee after the
exercise of such option.
FIFTEENTH
It is agreed that this instrument and all of the provisions shall bind the heirs,
executors, administrators, successors, and permitted assigns of Lessor and Lessee.
LESSOR: LESSEE:
Date: ______ ________, 2011 Date: _____ ________, 2011
CITY OF CARMEL-BY-THE-SEA CARMEL YOUTH CENTER, INC.
A Municipal Corporation A California Non-Profit Corporation
By:___________________ By_________________________
Sue McCloud, Mayor