2009/11/24 City Council Resolution 2009-126RESOLUTION NO. 2009 -126
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK
APPROVING AN AMENDMENT TO GROUND LEASE AGREEMENT WITH THE
COMMUNITY DEVELOPMENT COMMISSION FOR THE GROUND LEASE OF THE
COMMUNITY CENTER COMPLEX
WHEREAS, the Community Development Commission of the City of Rohnert Park is leasing the
ground from the City of Rohnert Park known as the Community Center Complex;
WHEREAS, the City of Rohnert Park and the Community Development Commission of the City of
Rohnert Park executed an agreement dated July 8, 2003 depicting the terms of the lease;
WHEREAS, the agreement stipulates that the basic lease payment shall be reviewed and adjusted
every five (5) years after the commencement of the lease to determine whether an adjustment in the basic
lease payment is warranted to reflect increases in the fair market value of the property;
WHEREAS, the agreement specifies that the fair market value of the lease shall be computed by
converting the fair market value per square foot of raw.commercial land in Sonoma County into an
annualized lease amount;
WHEREAS, the industry standard for computing the adjusted fair market value for a basic lease
payment is the 12 -month percent change in the San Francisco - Oakland -San Jose, CA Consumer Price Index
for All Urban Consumers; and
WHEREAS, the Interim City Manager desires to amend the Ground Lease Agreement to revise the
manner in which the adjusted fair market value for basic lease payments is calculated to reflect the industry
standard.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rohnert Park that it
does hereby authorize and approve the Amendment to the Ground Lease Agreement between the City of
Rohnert Park and the Community Development Commission of the City of Rohnert Park for the leasing of
the Community Center Complex.
BE IT FURTHER RESOLVED that the Interim City Manager is hereby authorized and directed to
execute documents pertaining to same for and on behalf of the City of Rohnert Park.
DULY AND REGULARLY ADOPTED this 24th day of November, 2009.
ATTEST:
19
Clerk
Z aN- !.,.*
CITY OF ROHNERT PARK
BELFORTE: AYE CALLINAN: AYE MACKENZIE: AYE STAFFORD: AYE BREEZE: AYE
AYES: (5) NOES: (0) ABSENT: (0) ABSTAIN: (0)
AMENDMENT TO GROUND LEASE AGREEMENT BY AND BETWEEN
THE CITY OF ROHNERT PARK, A MUNICIPAL CORPORATION OF
THE STATE OF CALIFORNIA, HEREINAFTER REFERRED TO AS
"LANDLORD," AND THE COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF ROHNERT PARK HEREINAFTER
REFERRED TO AS "LESSEE"
WHEREAS, the Community Development Commission of the City of Rohnert Park is
leasing the ground from the City of Rohnert Park known as the Community Center Complex;
WHEREAS, the City of Rohnert Park and the Community Development Commission of
the City of Rohnert Park executed an agreement dated July 8, 2003 depicting the terms of the
lease;
WHEREAS, the agreement stipulates that the basic lease payment shall be reviewed and
adjusted every five (5) years after the commencement of the lease to determine whether an
adjustment in the basic lease payment is warranted to reflect increases in the fair market value of
the property;
WHEREAS, the agreement specifies that the fair market value of the lease shall be
computed by converting the fair market value per square foot of raw commercial land in Sonoma
County into an annualized lease amount;
WHEREAS, the industry standard for computing the adjusted fair market value for a
basic lease payment is the 12 -month percent change in the San Francisco - Oakland -San Jose, CA
Consumer Price Index for All Urban Consumers;
WHEREAS, the Interim City Manager/Executive Director desires to amend the Ground
Lease Agreement to revise the manner in which the adjusted fair market value for basic lease
payments is calculated to reflect the industry standard; and
NOW, THEREFORE, the City of Rohnert Park and the Community Development
Commission of the City of Rohnert Park, for and in consideration of the mutual promises
contained herein, agree as follows;
1. Rent. Section 4 of the Agreement is hereby deleted in its entirety and replaced with
the following:
"Lessee shall pay to Landlord, as and for rent for the Property, an amount equal to
TWO HUNDRED TEN THOUSAND and No /100 DOLLARS ($210,000) per year in
two equal semi - annual payments, on or before the 31" day of December and the 30'h
day of June of each fiscal year (the Basic Lease Payment). The Basic Lease Payment
shall be reviewed and adjusted every five (5) years after the commencement of the
Lease to determine whether an adjustment in the Basic Lease Payment is warranted to
reflect increases in the fair market value of the Property. The fair market value of the
lease shall be computed by multiplying the 12 -month percent change in the San
Francisco - Oakland -San Jose Consumer. Price Index for All Urban Consumers,
Jx- S:05-a
June to June, by the Basic Lease Payment to arrive at an adjusted Basic Lease
Payment and then repeating the computation for each subsequent year in the five year
period to arrive at the adjusted Basic Lease Payment for the five (5) year term. The
Lease Rate shall be 8 %.
All rent shall be paid, without any off -set, counterclaim or deduction whatsoever, at
City of Rohnert Park 130 Avram Avenue Rohnert Park 94928. If any portion of rent
shall be due and unpaid for more than five (5) days, a late charge of Five Cents ($.05)
for each dollar so overdue shall be paid by Lessee for the purpose of defraying the
expense incident to handling such delinquent payment, together with interest at the
per annum rate equal to two percent (2 %) per annum greater than the prime rate of
interest announced from time to time by Bank of America, as the same may change
from time to time, from the due date until the date of payment thereof by Lessee.
In the event this Lease is terminated by the Landlord, a prorated portion of the pre-
paid rent shall be returned to Lessee. The obligation of Lessee with respect to the
payment of rent shall survive the termination of the Lease."
2. In Effect. All other sections of the Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have executed this instrument or cause the
Amendment to be executed by their duly authorized agents this day of ,
2009.
LANDLORD:
CITY OF ROHNERT PARK
0
Interim City Manager, Dan Schwarz (Date)
LESSEE:
COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF ROHNERT PARK
By:
Interim Executive Director, Dan Schwarz (Date)
Per City Council Resolution No. 2009 -126 and CDC Resolution No. 2009 -16 consecutively adopted by
the City Council and Community Development Commission on November 24, 2009.
ATTEST:
City Clerk
APPROVED AS TO FORM:
City Attorney
ATTEST:
Secretary
APPROVED AS TO FORM:
General Counsel
(2 )