Agenda Item

AGENDA STAFF REPORT

 

ASR Control 14-001524

 

MEETING DATE:

10/07/14

legal entity taking action:

Board of Supervisors

board of supervisors district(s):

5

SUBMITTING Agency/Department:

OC Dana Point Harbor (Approved)

Department contact person(s):

Brad Gross (949) 923-3798

 

 

Scott Mayer (714) 834-3046

 

 

Subject: Lease Amendment with San Clemente Sportfishing, Inc.

 

ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

Approved Agreement to Form

Discussion

 

 

3 Votes Board Majority

 

 

 

Budgeted: N/A

Current Year Cost: N/A

Annual Cost: N/A

 

 

 

Staffing Impact: No

# of Positions:

Sole Source: N/A

Current Fiscal Year Revenue: N/A

Funding Source: N/A

County Audit in last 3 years: No

 

 

Prior Board Action: 10/1/2002 #17

 

RECOMMENDED ACTION(S):

 

 

1.

Find that Final EIR No. 591, previously certified by the Board of Supervisors on January 31, 2006 reflects the independent judgment of the County of Orange and satisfies the requirements of CEQA for this Dana Point Lease Amendment, which is a necessarily included element contemplated as part of the whole of the action.

 

a.

The circumstances of the project are substantially the same as described in EIR No. 591 which adequately addressed the effects of the proposed project. No substantial changes have been made in the project, no substantial changes have occurred in the circumstances under which the project is being undertaken, and no new information of substantial importance to the project which was not known or could not have been known when the previous EIR No. 591 was adopted has become known, and no further environmental review is required.

 

b.

EIR No. 591 is adequate to satisfy the requirements of CEQA for the Dana Point Lease Amendment.

 

c.

All mitigation measures are fully enforceable pursuant to CEQA (Public Resources Code) Section 21081.6(b) and have either been adopted as conditions, incorporated as part of the project design, or included in the procedures of project implementation.

 

2.

Approve the First Amendment to the lease between the County of Orange and San Clemente Sportfishing Inc., dba Dana Wharf Sportfishing dated October 1, 2002 at Dana Point Harbor.

 

3.

Authorize the OC Dana Point Harbor Director or designee, to execute the Amendment in substantially the form of Attachment A.

 

 

 

 

SUMMARY:

 

Approval of this First Amendment to the lease (Amendment) between the County and San Clemente Sportfishing., Inc., dba Dana Wharf Sportfishing (Tenant) will clarify existing terms in the Lease and require the Tenant to make certain improvements to the Premises within eighteen (18) months of the effective date of the Amendment, and provide the Tenant with an option to extend the expiration date of its current lease for an additional ten (10) years, through 2032. Tenant will continue to provide the current level of services to the public at Dana Point Harbor as provided for in the current lease.

 

 

 

BACKGROUND INFORMATION:

 

As the County moves forward with the Revitalization Plan, which includes renovation and new construction of buildings, as well as the demolition of many existing structures, it is critical for the merchants to maintain their current level of services to the public as required in their current lease agreements. Maintaining merchant quality service delivery is essential to achieving the mission of OC Dana Point Harbor and satisfactorily serving the public.

 

Tenant provides sport fishing, whale watching, boat chartering, Catalina transportation, and the retail sale of fishing products and accessories to residents and tourists visiting Dana Point Harbor and Orange County.

 

The County entered into a twenty year (20) lease with the Tenant which was approved by the Board of Supervisors on October 1, 2002. CEO Real Estate, in collaboration with the Director OC Dana Point Harbor, has prepared this Amendment to: clarify the terms and requirements in Exhibit C of the lease; provide current insurance standards; and allow for a ten (10) year Option to Extend the lease provided that Tenant fulfills certain terms and conditions in the Lease as more fully set forth in the Amendment.

 

This lease is being handled separately from the proposed amendments for the 18 tenants in the Mariners Village and the one tenant on Dana Wharf as those tenants buildings will be demolished as part of the Revitalization.  Those 19 tenants who elect to amend their leases will be offered an opportunity to lease newly constructed space. In contrast, this amendment is for a tenant whose building is not being demolished but will be similarly impacted by construction and is required to provide for significant tenant improvements to their existing leased area.

 

Compliance with CEQA: This project is a necessarily included element of the project considered in Final EIR No. 591, certified by the Board of Supervisors on January 31, 2006, which adequately addressed the effects of the proposed project. No substantial changes have been made in the project, no substantial changes have occurred in the circumstances under which the project is being undertaken, and no new information of substantial importance to the project which was not known or could not have been known when the Final EIR No. 591 was certified has become known; therefore no further environmental review is required.

 

 

 

 

FINANCIAL IMPACT:

 

The Amendment clarifies:

               The current calculation of the base annual rent paid to the County as of the Effective Date to be $254,565 subject to periodic adjustments pursuant to the lease;

               The Common Area charges payable by Tenant to the County to be $500 per month as of the Effective Date;

               That the Tenant is required to provide improvements to the Premises at its sole cost of not less than $149,123.95 within eighteen (18) months of the Effective Date of the Amendment.

 

 

 

STAFFING IMPACT:

 

N/A

 

REVIEWING AGENCIES:

 

CEO Real Estate
CEO Risk Management
County Counsel

 

ATTACHMENT(S):

 

Attachment A - Lease Amendment
Attachment B - Real Property Lease/License Questionnaire
Attachment C - Existing Lease
Attachment D - Summary of Amendment Terms
Attachment E - Redline of Existing Lease