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HomeMy WebLinkAbout2000-01-18 City Council (19)TO: City of P.alo Alto City Manager’s Report HONORABLE CITY COUNCIL 8 FROM:CITY MANAGER DEPARTMENT: ADMINISTRATIVE SERVICES DATE:JANUARY 18, 2000 CMR: 101:00 SUBJECT:AMENDMENT NO. 5 TO OPTION AGREEMENT BETWEEN THE CITY OF PALO ALTO AND COMMUNITY SKATING, INC. TO PROVIDE FOR INTERIM USE OF THE TENNIS FACILITY AT 3005 MIDDLEFIELD ROAD RECOMMENDATION Staff recommends the Council approve the attached Amendment No. 5 to the Option Agreement between the City of Palo Alto and Community Skating, Inc. (CSI) for the tennis facility at the former Chuck Thompson site at 3005 Middlefield Road. This amendment provides for CSI to operate the tennis facility under an existing conditional use permit on an interim basis while CSI fulfills the conditions of the new conditional use permit approved by Council on October 13, 1998. BACKGROUND On May 1, 1995, Council granted an option to lease to Community Skating, Inc. (CSI) for the development and operation of a tennis facility at 3005 Middlefield Road. On August 15, 1996, the Zoning Administrator approved a conditional use permit for the project, which was then appealed by three neighbors of the site. The three appeals were heard by the Planning Commission on November 13, 1996, after which several additional acoustical analyses were prepared for the project. The appeals were then heard by the City Council on September 15 and December 1, 1997, at which time staff was directed to revise the mitigated negative declaration to reflect the noise mitigations presented in the acoustical analyses and to assess any environmental impacts that could result from the height and location of the sound walls. On October 13, 1998, Council approved the revised mitigated negative declaration and the conditional use permit for the project; denied the three appeals; and directed staff to return with a Budget Amendment Ordinance (BAO) not to exceed $50,000 to pay up to one half of the cost to construct the sound walls. The sound walls required by the use permit are 10-foot high, airtight, acoustical sound walls along the western and northern edges of the site. Following Council’s October 1998 approval, three lawsuits were filed by neighbors of the project challenging the approval, and the project was put on hold. One lawsuit was settled, and CMR: 101:00 Page 1 of 3 the other two were dismissed. On October 4, 1999, Council approved a BAO appropriating $50,000 for the City’s contribution to the cost of a sound wall and a related Amendment to the Option Agreement between the City and CSI. DISCUSSION ’ Under the conditions of the option Agree.me,nt, before ~CSI may enter into the lease and construct the project and operate the facility, it must obtain Architectural Review Board (ARB) approval and ~a building permit for the .sound walls. Given the history of this project, which has been in the City review process since 1995, ~CSI anticipates that obtaining ARB approval and the building permit could take considerable ’time, which wod]d furthe~ delay, improvement, maintenance and use of the existing cohrts. To, avoid further delay, CS~I has pr0pos~d an~,,interim plan. Pending ARB and building permit approval of the sound walls, C-SI would like to repair and operate the existing four tennis courts under the use permit granted for the former use, the Chuck Thompson Swim and Tennis Center, which occupied the property prior to City acquisition of the site. This existing use permit runs with the property, and still allows for the repair and operation of the existing four courts. To allow fot~SI to implement this interim plan, the Option Agreement must be amended to allow CSI to enter into the lease prior to receiving ARB and Building Permit approval of the sound wall required by the new use permit approved by Council on October 13, 1998. Amendment to Option Agreement: The attached Amendment No. 5 to the Option Agreement amends the appropriate sections of the Option Agreement and its attached lease to make it possible for CSI to repair and operate the existing four tennis courts, pending approval of the sound wall required by the new use permit. RESOURCE IMPACT The refurbishment and use of the existing tennis courts by CSI will be at no cost to the City. : POLICY IMPLICATIONS The recommendation is consistent with existing City policy. ENVIRONMENTAL REVIEW The operation, repair, maintenance or minor alteration of existing facilities is Categorically Exempt under the requirements of the California Environmental Quality Act (CEQA). ’ CMR: 101:00 Page 2 of 3 ATTACHMENTS Attachment A: PREPARED BY: Amendment No. 5 _to Option Agreement Janet Freeland~ Senior Financial Analyst DEPARTMENT HEAD APPROVAL: Director, Administrative Services CITY MANAGER APPROVAL: EMILY HARRISON Assistant City Manager cc: Community Skating, Inc. CMR:101:00 Page 3 of 3 Attachment A AMENDMENT NO. 5 TO OPTION AGREEMENT BETWEEN CITY OF PALO ALTO AND COMMUNITY SKATING, INC. This Amendment No. 5 to the Option Agreement Between the City of Palo Alto and Community Skating Inc., dated June 20, 1995 (hereinafter referred to as the "Option"), is made and entered into this ~ day of ,2000, by and between the CITY OF PALO . ALTO, a California municipal corporation of the State of California, hereinafter referred to as "CITY," and COMMUNITY SKATING, INC., a California non-profit corporation, hereinafter referred to as "CSI"; RECITALS WHEREAS, the Option provides for an exclusive option to lease the property located at 3005 Middlefield Road, Palo Alto, hereinafter referred to as the "Premises," for the purpose of constructing improvements and operating a recreational tennis facility, hereinafter referred to as the "Project," as described in the Option and the lease attached thereto as Exhibit I, hereinafter referred to as the "Lease;" and WHEREAS, Amendment No. 1 to the Option, dated May 15, 1997, extended the option term an additional nine (9) months to March 20, 1998; and WHEREAS, Amendment No. 2 to the Option, dated March 20, 1998, extended the option term an additional nine months until December 20, 1998; and WHEREAS, Amendment No. 3 to the Option, dated April 4, 1999 extended the option term to one hundred and eighty (180) days after the date of final disposition of the following three pending cases: Middlefield Road Homeowners Assoc. v. City of Palo Alto, et al., SCC Sup’r Ct. No. CV 778008; Wei Wang, et al. v. City of Palo Alto, et al., SCC Sup’r Ct. No. CV 778019; and Natalie Fisher, et al. v. City. of Palo Alto, et al., SCC Sup’r. Ct. No. CV 777977; and WHEREAS, Amendment No. 4 to the Option, dated October 4, 1999, provided for the City to reimburse TENANT for one half the cost of a 10-foot high acoustical sound wall, not to exceed $50,000; and WHEREAS, an existing use permit allows for the improvement and use of the existing facilities on the former Chuck Thompson Swim and Tennis Club site; and WHEREAS, TENANT desires to improve and operate said facilities on an interim basis pending CITY approval of the sound wall required by the conditional use permit approved by CITY on October 13, 1998, and use~ WHEREAS; TENANT and CITY desire to amend the Option to provide for this interim NOW, THEREFORE, in consideration of their mutual covenants, the parties hereto agree as follows: ,~ SECTION 1. -Section 4 paragraph C of the Option is amended as follows: "OPTIONEE shall~ ~gv~e applied, for and received approval.of a conditional use permit for the proposed development and operation from City’s Zoning Administrator. Nothing in this option shall be construed to prohibit OPTIONEE from continuing activities and uses permitted under the existing use permit pending completion of the improvements required by any new use permit:" , ~ ~. ¯ SECTION 2. Section 4 paragraph H of the Option.is amended as ~’ollow~:: ~ . "OPTIONEE shall apply for approval of the construction drawing~ for the proposed development (the Construction Drawings) from the City Engineer and Chief Building Official. Construction Drawings shall include: 2. 3. 4. Complete architectural, landscape and engineering working drawings; Complete construction specifications: ,~, Complete construction contract form: and Proposed construction schedule. SECTION 3. Section IV of Exhibit 1 to the option is amended as follows: "The term of this lease shall be a maximum of 15 years, commencing on the signing of LEASE by City. The specific term shall be as follows: ., The term shall.be coextensive and coterminous with the existing lease between .TENANT and CITY dated January 26, 1990 for the adjacent site commonly known as the "Winter Lodge site." SECTION 4. SectionXIII of Exhibit 1 to the Option is amend’ed as follows: 2 A. Minimum Construction and Timing. Tenant shall in a efficient and workmanlike manner, cause to be designed, ’ constructed, and installed within the PREMISES appropriate improvements to adequately accommodate those services and uses required by Clause III (REQUIRED AND OPTIONAL SERVICES AND USES). The plans prepared by TENANT and approved by CITY shall be a master plan for development of the PREMISES, and the constructiondrawings prepared by TENANT and approved by the City Engineer shall be the plans, specifications, and time schedule for constructing such improvements. Development proposed by TENANT in the master plan may be scheduled in increments approved by the City Manager or designee. SECTION 5. Except as herein modified,all other provisions of and exhibits to the Option shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Amendment the day and year first above written. CITY OF PALO ALTO COMMUNITY SKATING~ INC. Mayor ATTEST: City Clerk Assistant City Manager APPROVED AS TO FORM: City Attomey APPROVED: Director of Administrative Serviees Director of Planning and Community Environment