HomeMy WebLinkAboutOrdinance 2186 N.C.S. 07/21/2004 EFFECTIVE DATE OF
1 ORDINANCE
2 ORDINANCE NO. 2186 N.C.S.
3 July 21, 2004
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6 Introduced by Seconded by
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9 Pamela Torliatt Mike O'Brien
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13 AN ORDINANCE OF THE COUNCIL 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 Sonoma, State of California. The City would
23 like to include in the expansion a portion of the premises covered by apre-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
35 provisions thereof irrespective of the fact that any one or more of said provisions be
36 declared unconstitutional, unlawful or otherwise invalid.
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Ordinance No. 2186 N.C.S. Page 1
1 Section 3. This ordinance shall become effective thirty (30) days after the date of
2 its adoption by the Petaluma City Council.
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4 Section 4. The City Clerk. is hereby directed to post this ordinance for the period
5 and in the manner required. by the City Charter.
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7 INTRODUCED and ordered posted/e~ this 7'h day of June, 2004.
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9 ADOPTED this 21 S' day of June, 2004 by the following vote:
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11 AYES: Mayor Glass, Harris, Healy, Vice Mayor Moynihan, O'Brien,
12 Thompson, Torliatt
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14 NOES: None
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16 ABSENT: None
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20 David Glass, Mayor
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23 ATTEST: .APPROVED Tr0-F RM:
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27 Gayle Petersen, City Clerk Richa~ d Rudnansky, City Att y
Ordinance No. 2186 N:C.S. Page 2
1 RECORDING REQUESTED BY,
2 AND WHEN RECORDED PLEASE
3 RETURN TO:
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9 Mail Tax Statements:
10 As Before
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15 AMENDMENT NUMBER ONE TO LEASE AGREEMENT
16 PETALUMA MUNICIPAL AIRPORT
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19 This Amendment Number One to Lease Agreement Petaluma Municipal Airport ("Amendment")
20 is made and entered into as of the day of 2004, by and between the
21 CITY OF PETALUMA, a political subdivision of the State of California, hereinafter referred to
22 as "Lessor" and TWO-NINER, INC., a California corporation, hereinafter referred to as
23 "Lessee."
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25 RECITALS
26 A. Lessor and Lessee are parties to that certain "Lease Agreement Petaluma Municipal
27 Airport" dated April 3, 1989 including an undated "Addendum to Lease Agreement
28 Petaluma Municipal Airport," signed for Lessor by Gene Beatty and for Lessee by
29 Marion .Hodge, (collectively, "Lease").
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31 B. Lessor is planning a hangar expansion project and would like to include in the expansion
32 a portion of the premises covered by the Lease, hereinafter referred to as "the
33 Surrendered Premises," including a portion of the landscaping, paving and other
34 improvements constructed thereon by Lessee.
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36 C. The parties wish to amend the Lease to provide for (i) return.. of the Surrendered Premises
37 to Lessor; (ii) reduction of the rent to reflect the reduced size of the premises being leased
38 by Lessee; (iii) a rent credit in consideration for improvements constructed. by Lessee on
39 the Surrendered Premises; (iv) Lessee's ability to assign the Lease with Lessor's consent;
40 and (v) extension of the term of the Lease through March 31, 2039.
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Ordinance No. 2186 N.C.S. Page 3
1 AGREEMENT
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3 The Lease is hereby amended as follows:
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5 1. The premises covered by the Lease shall be amended to exclude the Surrendered
6 Premises. The parties agree that the Surrendered Premises is approximately 41,428
7 square feet, in the area shown on Exhibit A attached hereto as "Surrendered Premises."
8 Within ninety (90) days following execution of this Amendment, Lessor shall cause to be
9 prepared a survey to determine the exact square footage of the remaining premises
10 subject to the Lease (shown on Exhibit A as "Amended Two-Niner Lease"), and shall
11 prepare a legal description thereof which will be attached to this Amendment as Exhibit
12 B. Lessee hereby surrenders any and all interest it may have in the Surrendered Premises
13 under the Lease.
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15 2. The provisions set forth in paragraph 2(a) of the Lease for the base ground rental rate per
16 square foot shall remain unmodified by this Amendment, however, it is acknowledged
17 that the total rental due shall be reduced pro-rata as of the date of execution of this
18 Amendment to reflect the reduced square footage of the leased premises as described in
19 Exhibits A and B to this Amendment.
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21 3. In consideration of landscaping, paving and other improvements constructed on the
22 Surrendered Premises by Lessee, Lessor hereby grants to Lessee a "Computed Credit" in
23 the aggregate sum of $65,200.00, to be credited to Lessee in successive equal rent
24 installments over the period beginning January , 2004 and ending February 1, 2016.
25 In the event the Lease is terminated for any reason prior to February 1, 2016, Lessor
26 shall, within sixty (60) days of such termination, pay to Lessee the full amount of the
27 Computed Credit remaining unpaid as of such termination date.
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29 4. As part of the consideration for Lessee's agreement to surrender the Surrendered
30 Premises hereunder, Lessor hereby grants to Lessee a "right of first refusal" to rent, on
31 terms acceptable to Lessor, any one of the four proposed new executive hangars to be
32 built upon the Surrendered Premises at such time as it shall become vacant and available
33 for rent. Such "right of first refusal" shall be exercisable by Lessee only once, therefore,
34 once Lessee elects to rent an executive hangar by use of such right of first refusal, if
35 Lessee thereafter ceases to rent that hangar, Lessee shall not subsequently have any
36 special preference for the rental of that or any other of the four executive hangars.
37 5. Paragraph 18 of the Lease is hereby amended to read as follows:
Ordinance No. 2186 N.C.S. Page 4
1 Lessee is authorized to assign this lease and/or sublease the
2 premises, subject to the terms and conditions of this lease. Any
3 such assignment and/or sublease shall be subject to the approval of
4 Lessor, which approval shall not be unreasonably withheld. Such
5 assignment and/or subleasing shall specify that the assignee and/or
6 sublessee shall be subject to the teens and conditions of this lease.
7 Signed copies of all such assignments and/or subleases shall be
8 furnished to Lessor upon execution.
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10 6. Paragraph 22 of the Lease is hereby amended to read as follows:
11 Lessee shall have the first right to negotiate with Lessor for a new
12 lease at the beginning of the last year of the terms of this lease,
13 which right maybe exercises by providing written notice thereof to
14 Lessor no later than one hundred eighty (180) days prior to the last
15 day of this lease. Provided Lessee furnishes such notice to Lessor
16 within the aforementioned time period, anew lease shall be
17 negotiated and effective as of the end of this lease teen. If Lessee
18 and Lessor do not execute such a new lease by such date, Lessor
19 shall have the right to negotiate a lease with any other interested
20 party or not to lease the premises at all.
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22 7. The teen of the Lease is extended to March 31, 2039.
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24 IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the day and
25 year first above written.
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28 CITY OF PETALLTMA, a political TWO-NINER, INC., a California
29 subdivision of the State of California corporation
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32 By
33 City Manager Name
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35 ATTEST:
36 Title
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38 City Clerk
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40 (signatures continued on next page)
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42 APPROVED AS TO FORM:
Ordinance No. 2186 N.C.S. Page 5
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4 City Attorney
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6 APPROVED:
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10 Department Director
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12 APPROVED: ~
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16 Risk Manager
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18 APPROVED:
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22 Finance Director
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47 agrmt
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Ordinance No. 2186 N.C.S. Page 6