HomeMy WebLinkAboutReso 54-20 Amendment #5 89-89WRESOLUTION NO. 54-20
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA,
APPROVING AMENDMENT #5 TO THE
NEW MASTER LEASE AGREEMENT
FOR LEASE SITE 89/89W, LOCATED AT 845 EMBARCADERO
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, the City of Morro Bay ("City") is the lessor of certain properties on the Morro Bay
Waterfront described as City Tidelands leases and properties; and
WHEREAS, Boatyard LLC ("Tenant") has been the lessee of Lease Site 89/89W since 2006
and is a tenant in good standing; and
WHEREAS, on October 11, 2016, Tenant and City entered into that certain new master lease
agreement for the Lease Site (the "New Master Lease Agreement") to resolve issues over a failing
portion of the seawall on the Lease Site; and
WHEREAS, the Tenant and City amended the Master Lease by executing Amendment #1,
effective December 12, 2017, (Amendment #1), Amendment #2, effective July 10, 2018, (Amendment
#2), Amendment #3, effective August 29, 2018, (Amendment #3) and Amendment #4, effective
October 24, 2018, (Amendment #4); and
WHEREAS, the Master Lease, Amendment #1, Amendment #2, Amendment #3 and
Amendment #4 are hereafter called the "Amended Master Lease;" and
WHEREAS, Tenant is a partner in Fair Sky Properties, a California general partnership (Fair
Sky Properties), who along with City have entered into that certain lease, as amended, for Lease Site
90/90W; and
WHEREAS, Amendment #5 is being signed on behalf of Fair Sky Properties only for the
purpose of acknowledging the terms of the amended lease for Lease Site 90/90W, including
expressly, the terms regarding rent; and
WHEREAS, the Tenant and City again desire to amend the Amended Master Lease for Lease
Site 89/89W to make certain modifications thereto.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay,
California, as follows:
1. The attached Amendment #5 to the New Master Lease Agreement for Lease Site
89/89W is hereby approved.
2. The Mayor is hereby authorized to execute said Amendment #5.
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular
meeting thereof held on the 23rd day of June, 2020 on the following vote:
AYES: Headding, Addis, Davis, Heller, McP[
NOES: None
ABSENT: None
ATTEST:
�—
Dak6 Swanson, City Clerk
AMENDMENT #5 TO THE LEASE AGREEMENT FOR
LEASE SITE 89/89W, LOCATED AT 845
EMBARCADERO AND ACKNOWLEDGEMENT OF THE
TERMS OF THE LEASE AGREEMENT
FOR LEASE SITE 9019OW
This Amendment (this Amendment #5) is made and entered into as of this 2q day of --I-Lk1y
2020, by and between the City of Morro Bay, a municipal corporation of the State of California,
hereinafter called "City," and Boatyard, LLC, a California limited liability company, hereinafter called
"Tenant." (Collectively, City and Tenant are sometimes referred to herein as the "Parties".)
WHEREAS, effective October 11, 2016, the Parties entered into that certain lease for Lease Sites
89/89W (Master Lease); and
WHEREAS, the Parties amended the Master Lease by executing Amendment #1, effective December
12, 2017, (Amendment #1), Amendment #2, effective July 10, 2018, (Amendment #2), Amendment #3,
effective August 29, 2018, (Amendment #3) and Amendment #4, effective October 24, 2018,
(Amendment #4); and
WHEREAS, the Master Lease, Amendment #1, Amendment #2, Amendment #3 and Amendment #4
are hereafter called the "Amended Master Lease;" and
WHEREAS, Clifford Branch Trust, dated January 11, 2006 and Smith Family Trust, dated September
13, 2004 as partners of Fair Sky Properties, a California general partnership (Fair Sky Properties) along
with City have entered into that certain lease, as amended, for Lease Site 90/90W; and
WHEREAS, this amendment #5 is being signed on behalf of Fair Sky Properties only for the purpose of
acknowledging the terms of the amended lease for Lease Site 90/90W, including expressly, the terms
regarding rent; and
WHEREAS, the Parties again desire to amend the Amended Master Lease to make certain
modifications thereto.
NOW THEREFORE, Tenant and City agree, as follows:
1. Unless expressly stated herein, words used in this Amendment #5 shall have the same
meaning as stated in the Amended Master Lease, except to the extent the context requires
otherwise.
2. The foregoing recitals are incorporated into this Amendment #5 as true and correct.
3. Except as expressly set forth herein, the Parties acknowledge and agree the Amended
Master Lease and all of the terms, conditions and contingencies of the Amended Master
Lease are in full force and effect. City and Fair Sky Properties acknowledge the amended
lease for Lease Site 90/90W and all of the terms, conditions and contingencies of the
amended lease for Lease Site 90/90W are in full force and effect.
01181.0024/651496.4 Page 1 of 3
4. The Parties agree
a. the Amended Master Lease is amended so the amount of each of the semi-annual
credit is reduced from $24,650.00 to $23,530.00,
b. the Commencement Date is September 1, 2020,
c. that certain lease dated November 19, 2001, originally between City and Josef
Steinmann (which was subsequently assigned to and assumed by Tenant) (Old
MLA) has been terminated as of the Commencement Date and since that date has
been and is of no force or effect and
d. no Minimum or Percentage Rent is due pursuant to the Old MLA.
5. City and Fair Sky Properties acknowledge no Minimum or Percentage Rent is past due for
Lease Site 90/90W and such rents will be due only as set forth in the amended lease for
Lease Site 90/90W, which those parties acknowledge is 180 days after the September 1,
2020, Commencement Date for Lease Site 90/90W.
IN WITNESS WHEREOF, the parties hereto have executed this Amendment #5 as of the date written
above.
CITY OF MORRO BAY
ing,
APPROVED AS TO FORM:
Chris Neumeyer, City At rney
ATTEST:
U/w
D Swanson, City Clerk
BOATY D, LLC
By:
Clifford Branch, Manager
[Signatures continued on Page 3]
01181.0024/651496.4 Page 2 of 3
[Signatures continued from Page 2]
ACKNOWLEDGED BY FAIR SKY PROPERTIES, a California general partnership.
SMITH F4MI10' TRUST, dated September 13, 2004, General Partner
By:
Jarr) dmund Smith, Trustee
Beverly Elder Smith, Trustee
CLIFFOR RANCH TRUST, dated January 11, 2006, General Partner
�\
By:
Clifford Branch, Trustee
01181.0024/651496.4 Page 3 of 3