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sr-052279-11c.Santa Monica, Califon May 16, 1979 TO: Mayor and City Council FROM: City.Staff SUBJECTc tease Agreement and Approval of Environmental Impact Report -Sparks/Endless Wave, Ine. Skate. Park Developers 9 J' MAY 2 2 1979 Introduction This report presents the contract negotiated with Sparks/Endless Wave, Inc. to develop the Skate Park on the City owned Deauville property north of the Santa Monica Pier and the draft Environmental'Impact Report for this park. Background October 24,'1978, the City-Council approved Sparks/Endless Wave, Inc. as the developer-rperator of the Skate Park, and authorized the City Manager to negotiate the terms and condi ions of the contract. (See chronology of Skate Park, attached.} March 7, 1979, the Architectural Review Board approved the conceptual design bf the facility. April 2, 1979, the draft EnvironmentaY Impact Report, was, approved by the Planning Commission. Lease terms and conditions. Term: (Page 3) 10 years with two (2)-five year dptions. Rent: .,-.(Page. 4} c:Minimum annual $24,OO~,and 12.5% of the gross amount exceeding $24,.000. Theannual percentage of the gross is tp be reviewed at three (3) year interva s to 'determine whether it should be :adjusted. ~l 6. MAY 2 2 1979 T0: Mayor and City C ~cil -2- May 16, 1979 Hours of'Operation: (Page 20} Weather Permitting.. Weekdays and Sundays 10:00 a.m. to 10:00 p.m. Fridays and Saturdays. 10:00 a.m. to 12 midnight Summer/.Severe Days per Week .10:00 a.m. to 12 midnight Re airs and Restoration: (.Page 32j A bond of $20,000 to demolish and restore the park to its original state, Hold Harmless: .(Page 3fi) The. lessor is to be free from all liability or loss by reasom of injury to person or property. InSUrancer {Page 38) LessorshalT be named as additional insured by iesse2 in the amount of $500_,000. SecuwitY: (Page 53) Lessee will provide security both during :and after hours. of operation without cost to lesson.. Alternatives 1. Council may approve and authorize the City Manager. to execute the contract- presented wththe'provision that it go, into effect upore approval of the project by the Coastal_ Commission,,and approve the Environmental Impact Report. 2. Council may modify the contract as presented. and approve with the provision that it_ga into, effect. upon approval of the project by the Coastal Commission, and approve the Environmental Impact Report. 3. 'Council may approve the contract without condition, and approve the Environ- mental Impact'Report. T0: Mayor and City C` cif 16, 1979 -3- 4. Council may disapprove the contract and advise the City Manager to renegotiate. 5. Council .may disapprove the contract. Recommendation Staff recommends Alternative No. 1 for Council to approve the contract as presented for execution by the City Manager with the provision that it go into effect upon approval of the Coastal Commission and approve the Environmental Impact Report. Prepared by: Donald T. Arnett, birector Recreation and Parks: DTA:pp Attachments.- CHRONOLOGY OF SKATE PARK 8/16/76 Recreation and Parks reviewed and unanimously approved a proposal for a'Skate Park by Bowl Riders, Inc.. on the Deauville:. property. 9/14/T6 City Council receives staff report. and Commission recommeridation. Requests Recreation and Parks Commission to hold public hearing. 10114/76 Information report-sent to Council. concerning State refusal for use of .parking dots for Skate. Park. 1/20/77 Recreation and Parks. Commission hold public hearing concerning Skate. Park. Large turn-out by youth and. ..parents-requesting, a. park. 5/19/77 S aff directed by Recreation and Parks Commission to: investigate availability of-System Development 'Corporation property for Skate Park (not available). 5J 2.4/77 Council directs City staff to investigate feasibility: of establishing Skate Parks.: 6/77 Planning Commission denies zoning variance request for Skate Park at the corner of Ocean Park .and Gentinela after. public hearing. 7/18/77 Staff zeport recommends to Council that private developer be used to"develop a skate park on the Deauville property. 8177 to Proposals sought from private developers: 12/.:77 -2- 12/12/77 SkaterOross Ltd. recommended by staff to develop skate... Bark. Council rejects all proposals; refers matter to the Recreation and Parks-Commission for. development of criteria. for the skate-park. 1/19/78. Recreation and-Parks Commission holds public hearing to develop criteria. 2/14/78 City Council approves skate park criteria. 7/13/78 Staff and developer call meeting to discuss skate park with,areaneighbors who have. signed. petition against park. Of twenty-three (23} signatures only four (4) people appear. A11 notifiedby`petition circulator, hand outs and news .article: 7/1.9/78 Reschedule-meeting to`ensure-participation. Only four (4)'people appear at the meeting. Originator of petition had. personally passed out.. his ..letter to attend the meeting:.. to signers of petition. 10/24/78 City Council approved Sparks/Endless Wave, Ina, as developer- , . operator of skatepark. Authorized City Manager to negotiate the thee. terms and: conditions of the contract. 3/7/79 Architectural Review Board approved the conceptual design of the facility.. 4/2/79 Draft Envirocunental Impact Report was approved by Planning Omission.