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HomeMy WebLinkAboutItem 13 - Approve License Agreement to Construct New Downtown Skate Park Community Development Agency santa-ana.org/cd Item # 13 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report August 16, 2022 TOPIC: DTSA Skate Park AGENDA TITLE: Approve License Agreement with East End Realty Partners, LP to Construct New Downtown Skate Park RECOMMENDED ACTION Authorize the City Manager to execute the first amendment to the license agreement with East End Realty Partners, LP to construct and maintain a new skate park in Downtown Santa Ana for a five-year term of August 16, 2022 to August 16, 2027, subject to non- substantive changes approved by the City Manager and City Attorney. DISCUSSION In December 2018, City Council and East End Realty Partners, LP entered into a license agreement to construct a new skate park in Downtown Santa Ana (DTSA) as a measure of providing public place-making space. As a direct response to the many Santa Ana youth that use skateboards as a mode of transportation and recreational activity, DTSA stakeholders are interested in constructing a skate park that will promote a healthy lifestyle, potentially alleviate damage to downtown infrastructure and minimize pedestrian injuries. Adding a skate park in DTSA also creates an amenity for attracting more visitors to the area. These visitors will continue to eat, shop and play in DTSA, which in turn increases revenues to the City. Upon City Council approval of the License Agreement, East End Realty Partners, LP will fund the design and construction of the skate park in the alley behind the city-owned parking structure at 5th and Spurgeon. Currently, the alley is used by service trucks for the adjacent businesses to exit when they enter through Spurgeon to drop off goods for the businesses. The construction of the skate park will ultimately eliminate that exit. Several accommodations to the area have been completed such as: removing the overhead wires, expanding the entrance/exit to accommodate large trucks, and allowing a two-minute grace period for trucks to drive through the entry/exit of the parking structure. DTSA Skate Park August 16, 2022 Page 2 2 8 8 0 The License Agreement has a five-year term and the ownership of the property remains with the City. The downtown skate park operations will comply with the Santa Ana Municipal Code section 31-5 under Skate Park Facility Regulations. The License Agreement approved in December 2018 was delayed due to unforeseen circumstances, but the East End Realty Partners, LP is committed to designing and constructing the skate park by the end of 2023. The Planning and Building Agency and Public Works Agency have been consulted on this project and will continue to provide permit/plan review until the project is completed. No city funding will be used for this project. FISCAL IMPACT There is no fiscal impact associated with this action EXHIBIT(S) 1. License Agreement Submitted By: Steven Mendoza, Assistant City Manager Approved By: Kristine Ridge, City Manager FIRST AMENDMENT TO RIGHT OF ENTRY AND LICENSE AGREEMENT THIS FIRST AMENDMENT TO RIGHT OF ENTRY AND LICENSE AGREEMENT is entered into on August 16. 2022, by and between East End Realty Partners, LP, a California limited partnership ("Licensee"), and the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California ("City") (collectively, the "Parties" and each a "Party"). RECITALS A.The Parties entered into Right of Entry and License Agreement No. A-2018-272, datedDecember 4, 2018 ("License"), by which Licensee proposed to fund the design,construction and maintenance of a new Skate Park in Downtown Santa Ana ("Project") inthe City alley located behind the parking structure on the southwest comer of French andSpurgeon, in the City of Santa Ana (APN 398-326-1 l) ("Property").B.In accordance with the terms and conditions of the License, the Parties now wish toamend the License to: extend the Term of the License; revise the insurance requirements;and, extend the construction completion date for the Project.NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions of the License, except as hereinafter modified, the Parties agree to the following: I.Section 2, Term, shall be amended to extend the Term of the License through August 16, 2027, unless an extension or renewal is granted by the City. Notwithstanding theforegoing or any other provision of the License, either City or Licensee may terminatethe License with or without cause, or for any reason, at any time, by giving the otherParty thirty (30) days written notice of termination at the address provided in the License.2.Section 7.1, City Improvements to Parking Structure, shall be amended to confirmthat all referenced City Improvements have been completed.3.Section 7.2, Completion of Work, shall be amended to set a Completion Date ofDecember 31, 2023, for Licensee to finish the Work related to the Project.4.Except as modified by this First Amendment, all terms and conditions of the Licenseshall remain in full force and effect.{signatures on following page} EXHIBIT 1 EXHIBIT 1