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HomeMy WebLinkAbout12-043 CC Resolution RESOLUTION NO. 12-43 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING AND AUTHORIZING THE EXECUTION OF A LEASE TERMINATION AGREEMENT WITH YMCA OF RIVERSIDE CITY AND COUNTY, INC. REGARDING THE YMCA BUILDING LOCATED IN MARGARITA COMMUNITY PARK THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: Section 1. Recitals. The City Council of the City of Temecula hereby finds, � determines and declares that: A. The City of Temecula ("City") is the owner of certain real property in the County of Riverside, California known as the Margarita Community Park ("Park"). B. On January 14, 2003, the City Council entered into a Ground Lease ("Lease") with YMCA of Riverside City and County, Inc. ("YMCA"), authorizing the YMCA to lease a portion of the Park and construct a YMCA building ("YMCA Building") thereon. C. The YMCA is proposing to terminate the Lease. D. Section 5(c) of the Lease provides that upon the expiration or earlier termination of the Lease, the YMCA Building and other improvements shall become the property of the City. E. Section 23(h) of the Lease provides that the City is entitled to receive a quitclaim deed executed by the YMCA upon the expiration or earlier termination of the Lease. F. The City intends to continue to operate the YMCA Building for recreational purposes for the community. G. The City and the YMCA desire to enter into a Lease Termination Agreement which provides that, in consideration for the termination of the Lease, the City shall pay the sum of One Million, Six Hundred and Nine Thousand, Nine Hundred and Fifteen Dollars and Zero Cents ($1,609,915) to the YMCA. H. The execution of the Lease Termination Agreement will result in the City owning the YMCA Building and other improvements as of the date of the termination of the Lease (i.e., no purchase agreement is necessary for the City to acquire title to the Building and other improvements). R:/Resos 2012/Resos 12-43 1 Section 2. Environmental Findings. In accordance with the California Environmental Quality Act, the proposed Lease Termination Agreement is exempt from the requirements of the California Environmental Quality Act ("CEQA") pursuant to Title 14 of the California Code of Regulations, Section 15323 because once the Lease is terminated, the City will continue to operate the YMCA Building with the same kind of recreational community activities that have been continuously provided to the public since 2003. As such, there is a reasonable expectation that the future operation of the YMCA Building would not represent a change in the operation of the facility. Pursuant to CEQA Guidelines Sections 15061(d) and 15062, the City Manager is hereby directed to cause a Notice of Exemption to be prepared, executed and filed for the foregoing determination in the manner required by law. Section 3. Approval of Lease Termination Agreement. The City Council of the City of Temecula hereby approves and authorizes the termination of the Lease through the execution of the Lease Termination Agreement set forth in Exhibit "A", attached hereto and incorporated herein as though set forth in full ("Agreement"). The Mayor is hereby authorized to execute the Agreement on behalf of the City in substantial conformance with the form of such Agreement. A copy of the final Agreement when executed by the Mayor and representatives of the YMCA shall be placed on file in the Office of the City Clerk. Section 4. City Manager Authority. The City Manager (or his designee), is hereby authorized, on behalf of the City, to take all actions necessary and appropriate to carry out and implement the Agreement and to administer the City's obligations, responsibilities and duties to be performed under the Agreement, as amendment, including without limitation, the authority to approve and execute on behalf of the City: title report, escrow instructions, implementation agreements, costs, license agreement for access to the Property and such other agreements or certifications as may be necessary or convenient to the completion of the sale of the Property pursuant to the Agreement. Section 5. Certification. The City Clerk of the City of Temecula shall certify to the passage, approval and adoption of this Resolution. R:/Resos 2012/Resos 12-43 2 PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 22" day of May, 2012. � � ; � ^ �� l� j �- �f � huck Washington, Mayor ATTEST: Susan W. Jones, MMC it Cler � [SEAL] R:/Resos 2012/Resos 12-43 3 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Susan W. Jones, MMC, City Cterk of the City of Temecula, do hereby certify that the foregoing Resolution No. 12-43 was duly and regularly adopted by the City Council of the City of Temecula at a meeting thereof held on the 22" day of May, 2012, by the following vote: AYES: 5 COUNCIL MEMBERS: Comerchero, Edwards, Naggar, Roberts, Washington NOES: 0 COUNCIL MEMBERS: None ABSENT: 0 COUNCIL MEMBERS: None ABSTAIN: 0 COUNCIL MEMBERS: None � usan W. Jo es, MMC City Clerk R:/Resos 2012/Resos 12-43 4