Full Text
AGENDA BILL Agenda Item No. 5(I) Date: August 19, 2014 To: El Cerrito City Council From: Karen Pinkos, Assistant City Manager Subject: Contra Costa Civic Theatre Lease Amendment ACTION REQUESTED Adopt a resolution authorizing the City Manager to execute an amendment to the property lease agreement for the Contra Costa Civic Theatre extending the term of the current agreement to May 5, 2035. BACKGROUND/ANALYSIS The Contra Costa Civic Theatre (CCCT) has leased the site at 951 Pomona from the City of El Cerrito since 1971. CCCT is a volunteer, nonprofit, public benefit corporation that has served El Cerrito and the Bay Area theater community since 1959. This upcoming season, CCCT will celebrate 55 years of entertaining audiences by providing quality community theatre productions and training opportunities in the theater arts for El Cerrito residents of all ages. The Lease Agreement currently in place was executed on November 17, 1980, was extended for a fifteen-year period at the Theatre’s option in 2005, and expires on May 5, 2020. CCCT, in partnership with the City, has improved the facility through various renovation programs in past years and intends to embark upon a capital campaign to further improve the theater facility, including accessibility upgrades, equipment replacement and repairs, and other improvements to enhance operations and the theater experience for users. An immediate need for the Theatre includes an investment in replacing the HVAC system, which is no longer repairable, by upgrading to a system that has a 30+ year lifespan. City staff and the CCCT have been discussing renewing and extending the current lease agreement to reflect this investment, as well as other future capital improvements, and demonstrate the City’s commitment to CCCT for the long-term. Staff is recommending extending the lease fifteen years to May 5, 2035. This will give the CCCT’s Board of Directors assurance of the Theatre’s ability to remain in the facility, and allows the City to continue its partnership with CCCT for many years to come. STRATEGIC PLAN CONSIDERATIONS Adoption of the resolution approving the proposed amendment would help fulfill Goal C – Develop a Sense of Place and Community Identity as detailed in the City of El Cerrito Strategic Plan, adopted April 2013. Specifically, adoption of the proposed resolution would contribute to achieving the following strategies: ---PAGE BREAK--- Agenda Item No. 5(1) • Identify, promote, and/or develop entertainment, recreational, and leisure activities for people of all ages and demographics • Promote arts and culture and community celebrations. FINANCIAL CONSIDERATIONS No additional fiscal impacts are expected by extending the Lease. The City receives $1.00 per year as rent payment from the Theatre. LEGAL CONSIDERATIONS The City Attorney has reviewed and approved the proposed amendment. Revi~~ Sc;it Hanin, City Manager " Attachment: 1. Resolution 2. First Amendment to Lease Agreement between the City and Contra Costa Civic Theatre Page 2 ---PAGE BREAK--- Agenda Item No. 5(I) Attachment 1 RESOLUTION 2014–XX RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL CERRITO AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDMENT TO THE PROPERTY LEASE AGREEMENT WITH THE CONTRA COSTA CIVIC THEATRE WHEREAS, the Contra Costa Civic Theatre (CCCT) is a volunteer, nonprofit, public benefit corporation which provides community theatre programs and training opportunities in the theater arts for El Cerrito residents of all ages; and WHEREAS, the CCCT provides these services at a theater facility located at 951 Pomona which is leased from the City of El Cerrito, authorized by a lease agreement dated November 17, 1980 and extended to May 5, 2020; and WHEREAS, CCCT has invested in renovation programs for the facility in past years and intends to embark upon a capital campaign to further improve the theater facility, including accessibility upgrades, HVAC and equipment replacement and repairs, and other improvements to enhance operations and the theater experience for users; and WHEREAS, to recognize the efforts of CCCT to improve the facility as well as demonstrate the City’s commitment to CCCT, the City Council wishes to execute an amendment to the above-referenced lease. NOW THEREFORE, BE IT RESOLVED that the City Manager is hereby authorized to execute the first amendment to the property lease agreement with the Contra Costa Civic Theatre, hereto attached as Exhibit A to this resolution and incorporated by reference, extending the term of the current lease, on behalf of the City of El Cerrito to May 5, 2035. I CERTIFY that at a regular meeting on August 19, 2014, the El Cerrito City Council passed this resolution by the following vote: AYES: COUNCILMEMBER: NOES: COUNCILMEMBER: ABSENT: COUNCILMEMBER: ABSTAIN: COUNCILMEMBER: IN WITNESS of this action, I sign this document and affix the corporate seal of the City of El Cerrito on August, 2014. Cheryl Morse, City Clerk APPROVED Janet Abelson, Mayor ---PAGE BREAK--- Agenda Item No. 5(I) Attachment 2 FIRST AMENDMENT TO LEASE AGREEMENT August 19, 2014 This First Amendment to Lease Agreement ("First Amendment") is entered into as of this 19th day of August, 2014 by and between the City of El Cerrito, a municipal corporation ("City") and Contra Costa Civic Theatre, a nonprofit corporation ("Lessee"). RECITALS A. The City and the Lessee entered into that certain Lease Agreement dated November 17, 1980 (the "Lease") whereby the City leased to Lessee and Lessee leased from City that certain property located at 951 Pomona Avenue, El Cerrito, California (the "Property"). B. The City and the Lessee now desire to enter into this First Amendment to the Lease Agreement in accordance with the terms set forth herein. NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby acknowledged, City and Lessee agree as follows. 1. Term. The term of this lease shall be extended fifteen (15) years and expire on May 5, 2035. 2. Effect of Amendment. Unless otherwise amended by this First Amendment, all provisions of the Lease shall remain in full force and effect. In the event of conflict between this First Amendment and the Lease, the First Amendment shall control. IN WITNESS WHEREOF, the City and the Lessee have caused this Lease to be executed as of date first written above. LESSEE: CONTRA COSTA CIVIC THEATRE, a nonprofit corporation By: Name: Its: CITY: CITY OF EL CERRITO a municipal corporation