R-10426CA:flatty\muni\laws\em\JC Reso 081709
City Council Meeting 090809 Santa Monica, California
RESOLUTION NO. ~na?F (CCS)
(CITY COUNCIL SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA TO
ENTER INTO A FIRST AMENDMENT OF THE LEASE WITH THE JONATHAN CLUB
WHEREAS, the State, the City and the Club entered into that certain Permit for
Improvements and Lease Option Agreement effective as of January 1, 1985 (the "Lease"),
which was recorded in the Official Records of the County of Los Angeles, State of
California on December 27, 1984 as Instrument 84-1509823.
WHEREAS, under the terms of the Lease, the State and the City leased to the Club
three separate parcels of the Santa Monica State Beach described therein and referred to
as Parcels A, B and C, collectively the "Parcels," for a period of twenty-five (25) years
commencing January 1, 1985, with an option to lease the Parcels for an additional ten (10)
years subject to a finding by the State and the City "that there has been no material change
in the need. of the State or City for the use of each of the Parcels."
WHEREAS, on July 14, 2009, July, 28, 2009, and August 11, 2009, the Council held
public meetings concerning the Club's option to extend. The Council has received and
reviewed the staff report and the supplemental staff report, the attachments thereto, the
submission from the Club and the supplemental submission from the Club, and has heard
public testimony on the issue of whetherthere has been a material change inthe need for
public use of the three beach parcels currently leased to the Jonathan Club.
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WHEREAS, at the public meeting on July 28, 2009, the Club submitted a proposal
(the "Club Proposal") to enter into a First Amendment of the Lease containing the following
terms:
i) an option term of ten (10) years commencing January 1, 2010 to and
.including December 31, 2019 ("Option Term") at which time the term
shall terminate automatically;
ii) payment of annual rent to the City in the amount of $125,000 due on
January 1St of each year during the Option Term;
iii) concurrently with the payment of Annual Rentduring the Option Term,
ah Improvement Fund Contribution of $75,000 per annum to the City
for capital improvements on Santa Monica State Beach to be used at
the sole discretion of the City after consultatioh with the Club; and
iv) release of the City from any claims connected with a prior rental
overpayment made by the Club, estimated to be $212,300; and
v) release- of the Club from any claims connected with any prior
encroachments on Santa Monica State Beach adjacent to the three
beach parcels.
WHEREAS; additional public improvements and recreational opportunities are
needed at Santa Monica Beach, and particularly on the North Beach.
WHEREAS, such additional public improvements and recreational opportunities
could be sited on the Parcels, but could also be sited at other locations.
WHEREAS; the Club's Proposal to the City would benefit public use by providing
.revenues forthe Santa Monica Beach and capital improvements thereon. Upon balancing
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the public need for Parcels A; B and C for the next 10 years against the benefits provided
by the Club Proposal, the City determines that there is no material change in the use of
Parcels A, B or C at this juncture and that the exercise of the option to extend the term for
10 years is appropriate.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES FIND AND RESOLVE AS FOLLOWS:
SECTION 1. There has been, as yet, no material change in the City's need to use
each of the Parcels.
SECTION 2. At the expiration of the ten year option and termination of the Lease,
the City may, in its unfettered discretion, limited only by the City's obligations to the State of
California, opt to change the use of any or all of the Parcels.
SECTION 3. The City Manager is authorized to enter into an amendment of the
Lease in accordance with the Club's Proposal for the exercise of the option to extend the
Lease term at the expiration. of which, the Lease shall automatically terminate.
SECTION 4. The City Clerk shall certify to the adoption of this Resolution, and
thenceforth and thereafter the same shall be in full force and effect.
APPROVED AS TO FORM:
Mars a Jo Moutrie
City ttor
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Adopted and approved this 8th day of September, 2009.
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Ken enser, Ma or
I, Maria Stewart, City Clerk of the City of Santa Monica, do hereby certify that the
foregoing Resolution No. 10426 (CCS) was duly adopted at a meeting of the Santa
Monica City Council held on the 8th day of September, 2009, by the following vote:
Ayes: Council members: Bloom, Davis, Holbrook, McKeown
Mayor Genser, Mayor Pro Tem O'Connor
Noes: Council members: None
Abstain: Council members: None
Absent: Council members: Shriver
ATTEST:
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Maria Stewart, City Clerk