SR-05-22-1979-11CSanta Monica, California, May 16, 1979
TO: Mayor and City Council
FROM: City Staff MAY 2 2 1979
SUBJECT: Lease Agreement and Approval of Environmental
Impact Report - Sparks /Endless Wave, Inc.
Skate Park Developers
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 - operator of the Skate Park, and authorized the City Manager to negotiate
the terms and conditions of the contract. (See chronology of Skate Park, attached.)
March 7, 1979, the Architectural Review Board approved the conceptual design
of the facility.
April 2, 1979, the draft Environmental Impact Report was approved by the
Planning Commission.
Lease terms and conditions:
Term: (Page 3)
10 years with two (2) five year options.
Rent: .(Page 4)
',:Minimum annual $24,000 and 12.6% of the gross amount
exceeding $24,000. The annual percentage of the gross
is to be reviewed at three (3) year intervals to
determine whether it should be adjusted.
ON
MAY 2 2 1979
TO: Mayor and City Council May 16, 1979
-2_
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 10:00 P.M.
Summer /Seven Days per Week 10:00 a.m. to 10:00 p.m.
Repairs and Restoration: (Page 32)
A bond of.$50,000 to demolish and restore the park to its
original state.
Hold Harmless: (Page 36)
The lessor is to be free from all liability or loss
by reason of injury to person or property.
Insurance: (Page 38)
Lessor shall be named as additional insured by lessee
in the amount of $500,000.
Security: (Page 53)
Lessee will provide security both during and after
hours of operation without cost to lessor.
Alternatives
1. Council may approve and authorize the City Manager to execute the contract
presented with the provision that it go into effect upon 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 go 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 Council
_3_
May 16, 1979
4. Council may disapprove the contract and advise the City Manager to
renegotiate.
5. Council may disapprove the contract.
Recommendation
Staff recommends Alternative Noe I 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, Director
Recreation and Parks
DTA:pp
Attachments