HomeMy WebLinkAbout2000-12-18 City Council (30)TO:
FROM:
City of Palo Alto
City Manager’s Report
HONORABLE CITY COUNCIL 9
CITY MANAGER DEPARTMENT: ADMINISTRATIVE
SERVICES
DATE:DECEMBER 18, 2000 CMR: 458:00
SUBJECT:AMENDMENT NO. 6 TO OPTION AGREEMENT BETWEEN THE
CITY OF PALO ALTO AND COMMUNITY SKATING, INC. TO
PROVIDE FOR USE OF THE TENNIS FACILITY AT 3005
MIDDLEFIELD ROAD
RECOMMENDATION
Staff recommends the Council approve the attached Amendment No. 6 to the Option
Agreement between the City of Palo Alto and Community Skating, Inc. (CSI) for the
tennis facility at 30’05 Middlefield Road. This amendment provides for CSI to enter into
the lease upon submission of a complete Architectural Review Board application for the
sound wall, and operate the tennis facility under an existing conditional use permit.
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 staffwas 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 toconstruct 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
’CMR:458:00 Page 1 of 3
by neighbors of the project challenging the approval, and the project was put on hold.
One lawsuit was settled, and 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 the related Amendment No. 4 to the Option
Agreement. Under the conditions of the Option Agreement, before CSI can 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
anticipated that obtaining ARB approval and the building permit could take considerable
time, which would further delay improvement, maintenance and use of the existing
courts. To avoid further delay, CSI proposed an interim plan, which was reflected in
Amendment No. 5 to the option presented to Council on January 18, 2000. Council
continued the discussion on January 18 pending clarification of the proposed plan. On
September 11, 2000, an amendment extending the term of the Option until December 31,
2001 was approved by the City Manager.
DISCUSSION
The attached amendment reflects CSI’s revised proposal. The option amendment will
permit CSI to enter into the lease following submission of its application for a building
permit for the 10-foot perimeter sound wall. Following commencement of the lease, CSI
will obtain ARB and building permit approval of the sound walls, and repair and operate
the existing four tennis courts under the use permit granted for the former use, the Chuck
Thompson Swim and Tenn’is 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 for CSI to implement this 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.
The attached Amendment No. 6 to the Option Agreement amends the appropriate
sections of the Option Agreement and its attached lease to make it possible for CSI, under
the existing conditional use permit for the site, to repair and operate the existing four
tennis courts, pending approval of the sound wall. Failure to obtain the required city
approvals and complete the construction of the sound wall and any other improvements
required for the use will result in termination of the lease.
RESOURCE IMPACT
The reti~rbishment and use of the existing tennis courts by CSI will be at no cost to the
City.
CMR:458:00 Page 2 of 3
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.
ATTACHMENTS
Attachment A:Amendment No. 6 to Option Agreement
DEPARTMENT HEAD APPROVAL:
CITY MANAGER APPROVAL:
EMILY HARRISON
Assistant City Manager
cc: Community Skating, Inc.
CMR:458:00 Page 3 of 3
ATTACHMENT A
AMENDMENT NO. 6
TO OPTION AGREEMENT BETWEEN
CITY OF PALO ALTO AND COMMUNITY SKATING, INC.
This Amendment No. 6 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 e!ghty (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;
WHEREAS, Amendment No. 5 to the Option, dated September 11, 2000, extended the
option until December 31, 2000; 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; and
WHEREAS, TENANT and CITY desire to amend the Option to provide for this use;
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 have a conditional use permit for the proposed development."
SECTION 2. Section 4 paragraph D of the Option is amended as follows:
"OPTIONEE" shall have submitted its building permit application for a 10-foot
perimeter wall."
SECTION 3. Section 4 paragraph F of the Option is amended as follows:
"OPTIONEE shall, before granting of wall construction permit, have provided to
CITY’s Real Property Manager evidence that any and all permits from any and all agencies
having pre-construction jurisdiction over the proposed development including, but not limited to,
building permits, street opening permits grading permits and health permits have been authorized
and are available."
SECTION 4: Section 4 paragraph G of the Option is amended as follows:
"OPTIONEE shall, before wall construction permit is granted, submit to City’s Chief
Building Official, certification that the plans for any proposed building construction comply, in
all respects, with current building codes, the federal Americans with Disabilities Act of 1990, as
amended, including any implementing regulations, and energy conservation requirements as set
forth in California code of Regulations, Title 24 for non-residential construction. The form and
content of said certifications shall be in conformance with the requirements of California Code of
Regulations, Title 24 for non-residential construction. Should the development of the property
be phased, the requirements of this subparagraph G shall apply only to the first phase of
improvements. For these purposes, "first phase" refers to the 10-foot perimeter wall."
SECTION 5. Section 4 paragraph H of the Option is amended as follows:
"OPTIONEE shall submit construction drawings for the proposed first phase of
the development (the Construction Drawings)
Construction Drawings shall include:
to the City Engineer and Chief Building Official.
Complete architectural and engineering working drawings;
Complete construction specifications:
Should the development of the property be performed in phases, the OPTIONEE
need only to submit Construction Drawings for construction of the wall in order to exercise the
option to lease the PROPERTY."
SECTION 6. Section III paragraph B of the Lease is omitted.
SECTION 7. Section XXIII paragraph E subparagraph D is added as follows:
"Failure to comply with the conditions of the Option dated June 20, 1995 will
constitute default and result in termination of the Lease."
SECTION 8. 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
By:
Its:
ATTEST:
City Clerk
Assistant City Manager
3
APPROVED AS TO FORM:
Senior Assistant City Attorney
APPROVED:
Director of Administrative Services