HomeMy WebLinkAboutStaff Report 235-07TO:
City of Palo Alto
City Manager’s Report
7HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT: ADMINISTRATIVE
SERVICES
DATE:
SUBJECT:
MAY 14, 2007 CMR: 235:07
AMENDMENT NO. 2 TO LEASE WITH THE ELIZABETH GAMBLE
GARDEN FOR PROPERTY LOCATED AT 1431 WAVERLEY STREET,
EXTENDING .THE TERM FOR TWENTY YEARS
RECOMMENDATION
Staff recommends that Council authorize the City Manager to execute the attached amendment
No. 2 to the lease with the Elizabeth F. Gamble Garden Center (Gamble Garden) for the City-
owned property at 1431 Waverley Street. The amendment will extend the lease for 20 years,
starting August 31, 2017 (See Attachment A).
BACKGROUND
On May 13, 1985, CounciI approved the Garden Center concept for the Gamble property at 1431
Waverley Street. On September 10, 1985, Council approved the Elizabeth F. Gamble Garden
Articles of Incorporation and awarded an Option to Lease for the purpose of developing and
operating a public garden. On August 31, 1987, Gamble Garden exercised its option and entered
into a 20-year lease. The lease includes one 10-year option to extend the term and a second
option for further extension upon mutual agreement by the City and Gamble Garden. On
September 12, 1994, Council approved Gamble Garden’s request to exercise its option to extend
the lease for an additional 10 years, until August 31, 2017.
DISCUSSION
Gamble Garden has requested a twenty year extension of its lease of 1431 Waverley Street (see
Attachment B, January 23, 2007 letter). As stated in its letter, Gamble Garden would like to
enlarge its endowment fund, and the lease extension will make the endowment fund monetary
drive feasible and assure granting agencies of the longevity of the Gamble Gardens organization.
Gamble Garden has been a good steward of the property, having invested over $650,000 in
leasehold improvements over the last twenty years with money raised from private funds. The
property is visited by approximately 25,000 visitors annually and is open to the public 365 days a
year at no cost. Gamble Garden provides benefits to the community including horticultural
classes and workshops, exhibits, demonstration gardens, a library, rental of the facilities,
elementary school and senior programs, tours, plant clinics, art and photography classes, and two
community events per year, Spring Tour and Community day.
CMR:235:07 Page 1 of 2
The Gamble Garden estimates a total need of $1,000,000 to be raised for the endowment and
property improvements. Details of the estimate are included in the attached March 27, 2007 letter
(Attachment C).
RESOURCE IMPACT
Extension of the lease will have no fiscal impact to the City.
POLICY IMPLICATIONS
Exercising the option to extend the lease does not represent any change to City policies.
ENVIRONMENTAL REVIEW
Extension of the lease is categorically exempt from the Requirements of the
Environmental Quality Act (CEQA) under Section 15301, existing facilities.
California
ATTACHMENTS
Attachment A: Amendment No.2 to Lease
Attachment B: January 23, 2007 Letter
Attachment C: March 27, 2007 Letter
PREPARED BY:
WILLIAM W. FELLMAN
Manager, Real Property
DEPARTMENTAL HEAD APPROVAL:
CITY MANAGER APPROVAL:
cc:Elizabeth Gamble Garden
FRANK BENEST
City Manager
CMR:235:07 Page 2 of 2
ATTACHMENT A
AMENDMENT NO. 2
TO LEASE WITH THE ELIZABETH F. GAMBLE GARDEN CENTER FOR THE
PROPERTY LOCATED AT 1431 WAVERLEY STREET, PALO ALTO
~ THIS AMENDMENT NO. 2 to the August 31, 1987 lease ("Lease") with
The Elizabeth F. Gamble Garden Center for the property at 1431 Waverley Street, Palo
Alto, is made and entered into this day of__, 2007, by and between the City
of Palo Alto, a municipal corporation ("Lessor") and The Elizabeth Gamble Gardens, a
community horticultural foundation ("Tenant").
RECITALS
No Lessor and Tenant entered into the Lease on August 31, 1987, for Tenant to
develop and operate a public garden center on the Gamble Property.
On February 17, 1995, Amendment No, 1 to the Lease extended the term for
an additional ten (10) years until August 31, 2017.
Co The Lease provides the Tenant with the option for a further extension subject
to conditions and by mutual agreement by Tenant and Lessor.
Do The parties now desire to amend the Lease to extend the existing lease term
for an additional twenty (20) years. Tenant has been a good steward of the
Gamble property and provided community benefit through its operations and
programs. The additional 20-year term will make Tenant’s Endowment Fund
monetary drive feasible by assuring granting agencies of the longevity of
Tenant’s management of the Gamble property.
E.The Tenant has satisfied the conditions required to extend the Lease.
NOW, THEREFORE, in consideration of the following covenants, terms
and conditions, the parties hereto agree.
Section 1. Pursuant to the terms of Section VI of the Lease, Tenant is hereby
permitted to extend the term of this Lease for an additional twenty year period,
commencing August 31, 2017 and terminating August 31,2038.
Section 2.
force and effect.
All provision of the Lease not amended herein, shall remain in full
IN WITNESS WHEREOF, the parties have executed this Amendment
No. 2 to the Lease as of the date first written above.
CITY OF PALO ALTO TENANT:
Assistant City Manager
ATTEST:
City Clerk
ELIZABETH F. GAMBLE GARDENS,
a Comml~n,i,ty Horticultural Foundation
Name.’~~.
Title:
,APPROVED AS TO FORM:
Sr. Asst. City Attorney
APPROVED:
Director, Administrative Services
2
E L I Z A B E T H
GAhIBLE
GARDEN
January23,2007
Bill Fellman
Director of Real Property
City of Palo Alto
250 Hamilton Avenue
Palo Alto CA 94301
ATTACHMENT B
Regarding: Elizabeth F. Gamble Garden Lease Extension
Our current lease expires 2017 and we would like to extend the expiration to 2037.
The original lease was executed August 31, 1987. The City of Palo Alto granted us a
10 year extension of the original lease term on FebmarT 17, 1995.
The Board of Directors of the Elizabeth F. Gamble Garden requests a t~venty year
extension of our lease of 1431 Waverley Stxeet which we have developed as a public
garden. We are developing a program to enlarge our Endowment Fund and are
pursuing grants to further improve the property. The lease extension will provide a
mechanism for accepting a wide variety of charitable gifts, bequests and assets malting
an Endowment Fund monetarT drive feasible and assuring granting agencies of the
longevity of the managing organization.
We believe we have been good stewards of the property. We have invested over
$650,000 in leasehold improvements over the last twenty years with money raised
from private funds. Last year alone, we invested $82,000 in property improvements.
The property is visited by approximately 25,000 visitors annually. We continue to be
open tothe public 365 days a year at no cost. We have two events per year that are
well received by the community: Spring Tour and our Community Day in the fall.
Each event draws families here for horticultural education or just plain fun and
enjoyment:
Attached for your information is our most recent Annual Report to the Community,
financial statement and the brochures used in our outreach. While ~ve have had the
pleasure of recently meeting several people from the City, we xvelcome a visit from aW
and all interested parties at any thne.
This lovely garden is in good hands and ~ve would like the opportunity to continue to
manage it for an additional twenty years. A lease extension at this thne ;vould facilitate
our Endowment program which in turn xvould help the Elizabeth F. Gamble Garden
become an even greater asset to the City of Palo Alto.
President
Attachments
WAVERLEY STREET PALO ALTO CA 943oi0364o
65o-3z9-I356 FAX 65o-3z9-I688 www.gaml, legarden.org
E L ! Z A B E T H
GAbIBLE
GARDEN
March 27, 2007 ATTACHMENT C
Bill Fellman
Director of Real Property
City of Palo Alto
250 Hamilton Avenue
Palo Alto, CA 94301
Regarding: Elizabeth F. Gamble Garden Lease Extension
The Elizabeth F. Gamble Garden has invested over $650,000 in leasehold
improvements over the last twenty years with money raised from private funds. Last
year alone, xve invested $82,000 in property improvements. Fundraising for
infrastructure or property improvements always brings with it questions of how long
we will be managing the property since the improvements such as a new roof or
in-igation systern come with big price tags and Usage warranties for many years. We
estimate a total need of $1,000,000 to be raised for our Endowment and direct property
improvements. Analysis of this projection is as follows:
Refurbish Tea House Exterior and Interior
Refurbish Main House Interior
Building(s) Roof
Building(s) Painting
Pest Control
Irrigation and hardscape in the garden
Children’s structure
Endmvment addition to support Horticulturist
Total Funding Necessary:
$ 250,000
$ 4o,ooo
$ 5o,ooo
$ 50,000
$ 10,000
$ 25,000
$ 75,0o0
$ 500,000
$1,000,000
The only item that may need further discussion is the addition to the Endoxvment to
support the Horticulturist. Once again we are losing our Horticulturist. Due to lack of
affordable housing in flxis area he is moving back to Oregon. We have had past success
in finding horticulturists with appropriate background for the job but who lack
adequate resources to be able to live close enough to Gamble to stay for any length of
time. After consulting with other public gardens we find that they are supplementing
salaries with living allowances. Today, our Endowment supports general operauons
with modest capital increases and good investment management. We need to increase
the Endowment with a capita! campaign, tosupport a fu!!- time horticulturist who can
afford to stay at Gamble for much longer than 2.5 years. There is support for this type
of campaign but we need to ensure donors that we will continue to be stewards of the
property and its Endowment.
We hope this is enough information for you to recommend a twenty-year extension of
our lease from the City of Palo Alto.
President
I43I WAVERLEY STREET PALO ALTO CA 94301-364°
65o-329-1356 FAX 65o-329-I688 www.gamblegarden,org