25C - AGMT - DELHI GROUND LEASE - Laserfiche WebLink

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REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JULY 5, 2016 TITLE: AGREEMENT AMENDMENT WITH DELHI CENTER TO EXTEND THE GROUND LEASE {STRATEGIC PLAN NO. 5,413) �1 RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1s' Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For_ CONTINUED TO FILE NUMBER Authorize the City Manager and Clerk of the Council to execute an amendment to the ground lease agreement with Delhi Center to extend the expiration date from September 6, 2020 to September 6, 2040, subject to non - substantive changes approved by the City Manager and City Attorney. DISCUSSION On September 5, 2000, the City of Santa Ana entered into a 20 -year ground lease agreement with Delhi Center, a California non - profit corporation, to permit the construction of a community center and ancillary parking areas at Delhi Park located at 2314 South Halladay Street. Delhi Center provides community programs and day care facilities for the residents of Santa Ana. On December 1, 2008, an amendment was approved to allow Delhi Center to expand the original lease area to accommodate a new fenced playground, which allowed Delhi Center to implement a California Head Start educational facility within the existing community center. Under the terms of the existing agreement, Delhi Center may elect to extend the term of the lease for a period of 20 years and 10 years, respectively, commencing on the expiration of the original term and /or extended term. In order to extend the term Delhi Center must provide written notice to extend the term at least 30 days before expiration term, which has been provided to the City. Delhi Center has requested an early extension to the ground lease in order to obtain funding for the operation and deferred maintenance of the center. All terms and conditions of the original ground lease shall remain in full force and effect. 25C -1