HomeMy WebLinkAboutAgenda 3.A-Ord 06/21/20040
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EFFECTIVE DATE OF
ORDINANCE'
ORDINANCE NO. 2186 N.C.S.
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ORDINANCEOF THE COU
13 AN �:N" CI'L OF THE' CITY OF PETALUMA
14 AUTHORIZING AN AMENDMENT TO THE LEASE OF REAL PROPERTY
15 LOCATED AT THE PETALUMA MUNICIPAL AIRPORT
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19 BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETALUMA AS FOLLOWS:
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21 Section 1 . A hangar expansion project is planned at the Petaluma Municipal
22 Airport, in the City of Petaluma, County of Sonorri'a, State of California. The City would
23 like to include in the expansion a portion of the premises covered by a pre- existing
24 Lease Agreement between the City and Two- Niner, Inc., dated April 3, 1989. To this
25 end, the Lease Agreement is; amended as .proposed, per Attachment "A," which is
26 incorporated herein by reference, and the City Manager is hereby authorized to sign
27 the amended Lease Agreement for the purpose of including a portion of the current
28 Two- Niner, Inc. leasehold in the hangar expansion,._
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30 Section 2 . If any section, subsection, sentence, clause or phrase or word of this
31 ordinance is for - any reason held to be unconstitutional, unlawful or otherwise invalid by
32 a court of competent jurisdiction, such decision shall not affect the validity of the
33 remaining portions of this ordinance. The City Council of the City of Petaluma hereby
34 declares that it would have passed and adopted this ordinance and each and all
3 5 provisions thereof irrespective of the fact that any one or more of said provisions be
36 declared unconstitutional, unld'Wful or oth'e'rwise invalid.
m Lordinance No. 2186 N.C.S. Page 1
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Ordinance No. 2186 N.C.S. Page 2
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Section 3 . This ordinance shall become effective thirty (30). days after the date of
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its adoption by the Petaluma City Council.
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Section '4 . The City Clerk is hereby directed to post this ordinance for the period
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and in the manner required by the City Charter.
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I'NTRO'DUCED and ordered posted / I+s d this 7th dray of June, 2004.
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ADOPTED this. day of 2004 by the following voter
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AYES:
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NOES:
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ABSENT:
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David Glass, Mayor
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ATTEST: APPROVED AS TO FORM:
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Gayle Petersen, City Clerk Richard Rudnansky, City Attorney.
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Ordinance No. 2186 N.C.S. Page 2
RECORDING.REQ.UESTED BY,
AND WHEN RECORDED. PLEASE
RETURN TO:
Mail Tax Statements:
As Before
ATTACHMENT A
AMENDMENT NUMBER ONE'TO LEASE°AGREEMENT
PETALUMA MUNICIPAL AIRPORT
This Amend ment Number One to Lease. A g reem ent Petaluma Municipal Airport ( "Amendment ")
is made and entered into as of the day of 2004, by and between the
CITY OF PETALUMA, a political subdivision of the State of California, hereinafter referred to
as "Lessor" and TWO- NINER. INC., a California corporation, hereinafter referred to as
"Lessee:"
RECITALS
A. Lessor and Lessee are parties to that certain "Lease Agreement Petaluma Municipal
Airport" dated April 3 1989 ,including 'an undated, "Addendum to Lease Agreement
Petaluma Municipal' Airport;" signed, for Lessor' by Gene Beatty and for Lessee by
Marion Hodge, (collectively, "Lease ").
B. Lessor is planning a hangar expansion project and would 'like to include in the expansion
a portion of 'the, premises covered by the Lease,' hereinafter referred to. as "the
Surrendered Premises, "'. including a portion of the landscaping, paving and other
improvements constructed thereon by Lessee
C. The parties wish to amend the Lease to provide for (i) return of the Surrendered Premises
to Lessor; (ii) reduction of .the rent to reflect the reduced' size ofthe premises being leased
by Lessee, (iii) a rent cred'it,in consideration -for improvements constructed by Lessee on
the Surrendered Premises; (iv) Clarification of Lessee's ability to assign and sublet the
Lease with .Lessor's (v) extension of the the Lease through March 31,
2039 and
' : . vr..the an consent; e term o
t to Lessee of additional rights as set forth
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'Ordinance No. 2186 N.C.S. Page 3
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AGREEMENT
The. Lease is hereby amended as follows:
1. The premises 'covered by the Lease shall be amended to exclude the Surrendered
Premises. The parties agree that, the Surrendered Premises is approximately 41428
square feet, in the area shown on Exhibit A attached hereto as "Surrendered. Premises:"
Within ninety (90) days following execution of this Amendment„ Lessor shall cause to be
prepared a survey to determine the exact square footage of the remaining :premises
subject to the Lease .(shown. on Exhibit A as "Amended' Two -Nirier Lease "), and shall
prepare '.a legal description thereof which will be attached to this "Amendment as.:Exhibit
B.. 'Lessee hereby surrenders any and all interest it may have in the Surrendered Premises
under the Lease.
2. The'provisions set forth in paragraph 2(a) of the Lease for the base ground rental rate per
square foot shall remain unmodified by this Amendment, however, it is acknowledged
that the total rental due shall. be reduced pro -rata, as of the date of execution of :this
Amendment to reflect1he reduced square footage of the leased premises as ;described in
Exhibits A and B. to this Amendment.
3. In consideration of landscaping, paving and other improvements constructed on the
Surrendered Premises by Lessee, Lessor hereby grants to Lessee a. "Computed Credit" in
the aggregate sum of $65,200.00, to be credited to Lessee - in successive equal. rent
installments over the period beginning January 2004 and ending February 1, 20.16.
In the event the Lease is terminated for any. prior to February 1, 2016, Lessor
shall, within sixty (6'0) days of such termination, pay to Lessee the full amount: the
Computed Credit remaining unpaid as of such termination date.
4. As part of the consideration for Lessee's agreement to surrender the Surrendered
Premises hereunder, ,Lessor: hereby grants to Lessee a "right of first refusal to rent, on
terms acceptable to Lessor, any one of the four proposed new executive hangars to be
built upon the Surrendered Premises at such time as it shall become vacant and available
for rent. Such "right.of first refusal" shall be exercisable by Lessee only once, therefore,,
once. Lessee elects to rent an executive hangar by use of such right of first refusal, if
Lessee thereafter ceases to .rent that ,hangar, Lessee shall not ;subsequently, have any
special preference for the rental of that or any other of the four executive hangars.
Ordinance: No. 2186 N.C.S. Page 4
5. Paragraph 18 of the Lease is hereby :amended to read as follows:
Lessee is authorized to assign this lease and/or sublease the
premises, subject to the terms and conditions of this lease. Any
such assignment and/or sublease shall subject to the approval of
Lessor, which approval shall not be unreasonably withheld. Such
assignment - and/or subleasing shall specify that the assignee and /or
sublessee shall be subject to the terms and conditions, of this lease.
Signed copies of all' such assignments and/or subleases shall be
furnished to Lessor upon execution. .
6. Paragraph 22 of the Lease, is hereby amended to read as follows:
Lessee shall have `the first right to negotiate with Lessor for a new
lease at the beginning of the last year of the terms of this lease,
which right may be exercises by providing written notice thereof to
Lessor no later than: one hundred eighty ('180) days prior to the last
day of this lease. Provided Lessee furnishes such notice to Lessor
within the aforementioned time period, a new lease shall be
negotiated arid effective as of the end bf this lease -term. If Lessee
and Lessor do .riot execute such a new lease by such date, Lessor
shall have the right to negotiate a lease with. any other interested
party or not to lease' the premises at all
7. The term 'of the Lease is extended'to March 31, 2039.
IN WITNESS WHEREOF the parties hereto have executed this Amendment as of the day and
year first above written.
CITY OF PETALUMA, a political
subdivision of 'the _State of California
City Manager
ATTEST:
City Clerk
TWO - MINER, INC., a California
:corporation
B.y
Name
Title
(signatures continued on next page)
Ordinance No. 2186 N'.C.S„
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APPROVED AS TO FORM: •
City Attorney
APPROVED:
Department Director
APPROVED:
Risk Manager
APPROVED:
Finance' Director
agrmt
5/3/04 (fork)
Ordinance No. 2186 N.C.S. Page 6