HomeMy WebLinkAboutFIESTA MARKETPLACE PARTNERS (3)INSURANICIE NOT QN111111"
'WORK MAY46f,"'01,H),
CEED
CLERK "OF COUNCIL
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LICENSE AGREEMENT
(The Paseo)
2440-7
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10/29/86
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THIS AGREEMENT, made and entered into this -
day
of 198, by and between the City of Santa Ana,
a municipal corporation of the State of California ("City") and
Fiesta Marketplace Partners, a limited partnership ("Fiesta");
W-I-T-N-E-S-S-E-T-H
Recitals:
A. The City has closed that portion of Spurgeon Street
between Third and Fourth Streets to vehicular traffic and improved
said area as an open -air -market called "The Paseo" for the vending
of artifacts and commodities.
B. Fiesta is developing property in the vicinity of the
Paseo pursuant to that certain Disposition and Development
Agreement ("D.D.A.") with the Community Redevelopment Agency of
the City of Santa Ana (the "Agency").
C. Fiesta is the appropriate entity 'to undertake the
arrangements for open air vendors within the Paseo®
WHEREFORE, in consideration of their respective promises,
the parties hereto do hereby agree as follows:
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1. Scope of License
City hereby grants to Fiesta, and to persons authorized
by Fiesta, a revocable license to use that portion of Spurgeon
Street between Third and Fourth Streets (hereinafter referred to
as the "subject property") for the following purposes:
(a) Vending of food, drinks, artifacts and merchandise
and similar items customarily offered for sale in open-air markets.
(b) Displays, promotional activities and seasonal
decorations, including, but not limited to, a "merry-go-round."
2. Term of License
The license herein granted shall commence upon the
issuance of a Certificate of Completion by the Agency pursuant
to the D.D.A. Said .License shall continue until revoked by City's
City Council.
3. Right to Charge for Use
As a condition to authorizing the use of any part of
the subject property for vending purposes, Fiesta may require
any vendor to pay a charge or rent for such privilege through
a lease or similar agreement. All such revenues received by
Fiesta shall be the property of Fiesta.
4. Insurance
As a condition to authorizing a vendor to use any part
of the subject property, Fiesta shall require such vendor to
obtain liability insurance naming the City of Santa Ana and its
2.
I
officers, agents and employees as insured or additional insured,
which provides comprehensive general liability coverage for
damages or injuries to persons or property arising out of the
vendor's operations on the subject property in the minimum
amount of One Million Dollars ($1,000,000.00) combined single
limit, or equivalent. Fiesta shall not allow vending on the
subject property by any vendor who does not have in effect a
current policy of insurance or a certificate thereof showing
compliance with this section on file with Fiesta.
5. Indemnification
Fiesta shall indemnify and save harmless the City and
its officers, agents and employees from and against any and all
claims, demands, loss or liability of any kind or nature which
the City or any of its officers, agents or employees may sustain
or incur, or which may be imposed on any of them, for injury to
or death of persons or damage to property as a result of the
operations of Fiesta or any person or entity authorized by Fiesta
to use any part of the subject property pursuant to this Agreement.
5. Subordination to_Right-of-way Uses
The license herein granted is subordinate to the public's
use of the public right-of-way for right--of-way purposes. Fiesta
shall comply, and shall require all vendors .located in the public
right-of-way to comply with any and all directives from City's
Executive Director of Public Works pertaining to the maintenance
and repair of the public right-of-way or to the passage of the
public on the public right-of-way.
3.
r
7. Maintenance
Fiesta shall assure that vendors authorized by Fiesta
to use parts of the subject property to keep their respective
areas of use reasonably free and clear of litter through a daily
cleanup of such areas.
8. Compliance with Laws and Ordinances
Nothing in this Agreement shall be construed to relieve
any person using the subject property pursuant to this Agreement
from the duty of compliance with requirements of law or City
ordinance, including but not limited to permit requirements for
pushcarts, public health regulations, and business license tax
requirements.
9. Non-discrimination
Fiesta covenants that, in authorizing persons to use
the subject property, it will not discriminate on the basis of
race, color, creed, religion, sex, age, marital status, national
origin, ancestry, physical handicap or medical conditions.
10. Revocation
This license granted by this Agreement may be revoked
by resolution of the City's City Council in the event Fiesta
fails to comply with the terms and conditions of this Agreement
or the D.D.A. or in the event the City determines it is necessary
to reopen the subject property to vehicular traffic; provided,
however, in the event City revokes said license in order to re-
open the subject property to vehicular traffic, the City shall
reimburse Fiesta for the unamortized cost of the improvements
installed on the subject property by Fiesta. In the absence of
circumstances necessitating a more rapid revocation, the City
shall give Fiesta thirty (30) days notice of revocation.
4.
11. Notices
Notices and written communications sent by one party
to the other shall be personally delivered or sent by U.S. Mail,
postage prepaid, to the following addresses:
If sent by the Association to the City:
Executive Director of Community Development
City of Santa Ana
20 Civic Center Plaza
Santa Ana, CA 92701
If sent by the City to the Association:
Fiesta Marketplace Partners
890 W. Baker Street, Suite 200
Costa Mesa, CA 92626
Attn: Irving M. Chase
IN WITNESS WHEREOF, the parties hereto have executed
this Agreement the date and year first above written.
Ile
c - e C. Guy'
Clerk of the council
APPROVED AS TO FORM:
jjawara. �,c,o2 er
City At�or)ney)
D&vidjlT. P-bam
City Manager
0,
THE CITY OF SANTA ANA
D iel H. Yoh"
Mayor
FIESTA MARKETPLACE PARTNERS
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DATE — January 20, 1987
TITLE JOINT PUBLIC HEARING REGARDING
THE FIESTA MARKETPLACE PROJECT
CITY MANAGER
AGENCY RECOMMENDATION
DATE OF AGENCY ACTION
SUA
Adopt Resolution No. 87-07: A RESOLUTION OF THE C014MITY REDEVELOPMENT AGENCY
OF THE CITY OF SANTA ANA APPROVING AN AMENDMENT OF AGRED04T WITH FIESTA
MARKETPLACE PARTNERS.
COUNCIL RECOMMENDATION
1. Adopt Resolution No. 87-10: A RESOLUTION OF THE CITY COUNCIL OF THE CITY
SANTA ANA APPROVING AN AMENDMENT TO A "DISPOSITION AND DEVELOPMENT
AGREEMEN7 BETWEEN THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF
SANTA ANA AND FIESTA MARKETPLACE PA1Z'1kTW.1S.
2. Approve and authorize the Mayor to execute a'Lease Agreement, a License
Agreement, and a Property Line Agreement for"the development of Fiesta
Marketplace.
COMMISSION RECOMMENDATION
Recommend that the Redevelopment Agency approve and authorize the Chairman to
execute the Amendment to the Disposition and Development Agreement.
EXECUTIVE SUMMARY
On August 20, 1985, the Agency entered into a Disposition and Development
Agreement with Fiesta Marketplace Partners for the development of a festival
retail and office development on Fourth Street between French Street and Bush
Street. The Agency -acquired sites have been conveyed to the Partnership and
construction is scheduled to begin in February, 1987. The four proposed
Agreements are necessary to implement the project and reflect changes and
refinement in the scope of development that have occured since the original
Agreement was executed.
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76.B. FIESTA MARKETPLACE PROJECT (AGENCY ITEM 2B)
The Mayor opened the Joint Public Hearing of the Community Redevelopment
Agency and the City Council of the City of Santa Ana concerning a
proposed amendment to the Disposition and Development Agreement and
approval of additional agreements for the proposed Fiesta Marketplace
located between Third Street, Fifth Street, Bush Street and French Street.
Patty Nunn, Project Manager, presented the staff report, Community
Redevelopment Commission recommendation, and staff comments, and
responded to Councilmembers' questions.
The Agency Secretary reported no written communications.
There were no speakers on the matter.
The Mayor closed the public hearing.
MOTION: (Part of concurrent action with Community Redevelopment Agency):
1) Adopt resolution.
RESOLUTION NO. 87-10 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA APPROVING AN AMENDMENT TO A "DISPOSITION AND DEVELOPMENT
AGREEMENT" BETWEEN THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF
SANTA ANA AND FIESTA MARKETPLACE PARTNERS.
2) Authorize the City Attorney to prepare and the Mayor and
Clerk to execute agreements.
PROPERTY LINE AGREEMENT WITH FIESTA MARKETPLACE PARTNERS for the
building being constructed at 305 East Fourth Street.
A-87-008
LICENSE AGREEMENT WITH FIESTA MARKETPLACE PARTNERS for use of
that portion of Spurgeon Street between Third and Fourth Streets
closed to vehicular traffic and improved as an open-air market
called "The Paseo." A-87-009
3) Authorize the City Attorney to prepare agreement to include
a clause which will grant the present tenants of the Mercado
area the right of first refusal, and authorize the Mayor and
Clerk to execute said agreement.
LEASE AGREEMENT WITH FIESTA MARKETPLACE PARTNERS for the
Mercado, located at the northwest corner of Fourth and French
Streets. A-87-007
RECESS TO COMMUNITY REDEVELOPMENT AGENCY
At 6.03 p.m., the Council recessed to the Community Redevelopment Agency,
and reconvened at 6.48 p.m., with all Councilmembers present.
CITY COUNCIL MINUTES 33 JANUARY 20, 1987
MEMORANDUM
Deputy City Manager/
To; Development Date:
ct ng. xecut ve rector/
From: Community Development Agen
Subject: FIESTA MARKETPLACE (_A--_8_S.ITE) AGREEMENTS _.-
STATEMENT OF THE ISSUE
January 20, 1987
On August 20, 1985, the Agency entered into a Disposition and
Development Agreement with Fiesta Marketplace Partners for the
development of a festival retail and office development on
Fourth Street between Bush and French Streets. The Agency has
conveyed the designated sites to the Partnership and construc-
tion of the project is scheduled to begin in February, 1987.
Since approval of the Development Agreement many issues have
been raised which require both amendments to the original
agreement as well as three new agreements which are described
below in further detail.
The Amendment to the Disposition and Development Agreement
defines changes that have occurred in the scope of the project
since the original Agreement was executed. The original Agree-
ment provided that the Partnership had the option to purchase
those parcels where owners declined to rehab their buildings and
participate in the project. The purchase price to be paid by
the Partnership was the Agency's actual cost to acquire, with
the exception of the property at 316-320 E. Fourth Street
(Galvan) which was to be sold at reuse value. Since that time,
two property owners chose not to participate and the Agency
proceeded to acquire them. They include 316-320 E. Fourth
Street and 202-210 E. Fourth Street (-Isaacson Building). We
renegotiated the purchase terms of 202--210 E. Fourth Street to
reflect a reuse value vs. actual costs to acquire. Both
properties are to be purchased by the Partnership for $560,000
as determined by a reuse appraisal prepared by Keyser Marston &
Associates. Attached as Exhibit A is a site map depicting the
subject properties..
The proposed Amendment further defines the scope of public.
improvements to be funded by the Agency and enables the developer
to install them and be reimbursed by the Agency. This will be a
more expeditious process and will result in a cost savings as
the improvements will be bid with the total project. The
developer will be required to obtain at least three separate
bids and cannot proceed without prior approval of the Agency's
Executive Director.
oie
76B
Deputy City Manager/Development
January 20, 1987
Page 2
The second agreement is between the Fiesta Marketplace Partners
and the City of Santa Ana for the lease of the Mercado, located
at the northwest corner of Fourth and French Streets. Under.
this Agreement, the Partnership agrees to lease the Mercado for
35% of the net income. The lease begins when the Fiesta
Marketplace is issued a Certificate of Completion on the total
project and terminates on December 31, 1999.. Under the terms of
the Agreement, the lease payments shall be paid to the Downtown
Santa Ana Business Association (DSARA). This is a triple net
lease with the Partnership responsible for all maintenance of
the site. The developer will be upgrading the appearance with
landscaping, new signage, and other graphic materials. The
DSABA has been informed of the lease and concurs with the
proposed terms.
The third agreement is also between the City and Fiesta
Marketplace Partners and pertains to the building being
constructed at 305 East Fourth Street. This building will house
retail space and a walk-in theater complex. On the east side of
the building is a food court that opens onto the existing
Mercado area. This Agreement provides that as long as the
Agency retains title to the Mercado site, no building shall be
constructed within 20 feet of the property line that separates
the buildings. If the Agency sells the site to anyone other
than the Partnership, the Partnership agrees to close off the
door and/or window.openings on the east wall of the building.
This Agreement is necessary so that building permits may be
issued and the project built as originally conceived with an
open air marketplace on the Mercado site.
The fourth agreement is between Fiesta.Marketplac,e Partners and
the City and pertains to that portion of Spurgeon Street between
Third and Fourth Streets closed to vehicular traffic, and
improved as an open-air market called "The Paseo". This License
Agreement provides a revocable license to the Partners to use'
that portion of Spurgeon Street between Third and Fourth Streets
for the vending of food, drinks and artifacts and also allows
for displays and promotional activities. The agreement requires
any vendor who may use the property to maintain liability
insurance to name the City as additional insured. Indemnifica-
tion to the City is also required of the Fiesta Partners. The.
license granted is subordinate to the public right-of-way for
right-of-way purposes.
ALTERNATIVES CONSIDERED
No alternatives have been considered as these agreements are
necessary for the implementation of the project.
Deputy City Manager/Development
January 20, 1987
Page 3
RECOMMMENDED ACTION
It is recommended that. the Redevelopment Agency approve and
authorize the Chairman to execute the Amendment to the
Disposition and Development Agreement, and that the City Council
approve and authorize the Mayor to execute the Amendment to the
Disposition and Development Agreement, the Lease Agreement, the
Property Line Agreement and the License Agreement with Fiesta
Marketplace Partners.
If you have any questions regarding the matter, please contact
me as soon as possible.
AA 'Cynt is J. Ne1 on
CJN/PN/lj
Attachment
020 76B