HomeMy WebLinkAboutE-11 Staff Report - Parking Lease - First AmendmentCONSENT ITEM
E-11
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: SERGIO GONZALEZ, CITY MANAGER
FROM: MATT MARQUEZ, DIRECTOR OF ECONOMIC AND COMMUNITY
DEVELOPMENT
DATE: MARCH 16, 2020
SUBJECT: APPROVE THE FIRST AMENDMENT TO THE PARKING LEASE WITH BANK OF
AMERICA, NATIONAL ASSOCIATION FOR THE SURFACE PARKING LOT
LOCATED AT THE NORTHWEST CORNER OF FOOTHILL BOULEVARD AND
ALAMEDA AVENUE
BACKGROUND:
On November 20, 2007 the Redevelopment Agency of the City of Azusa (“City”) entered into a Parking
Lease (“Original Lease”) with Bank of America, National Association (“Bank”) for the surface parking
lot located on the northwest corner of Alameda Avenue and Foothill Boulevard. The original lease
contemplated the sale of the City property formerly known as Block 36 on the southeast corner of Azusa
Avenue and Foothill Boulevard to Reg Azusa, LLC. Due to the economic downturn the proposed Reg
Azusa Block 36 project did not proceed. Since then, the City has sold Block 36 to Azusa Block 36 LLC
and therefore the City and the Bank desire to enter into the First Amendment to revise certain provisions
of the Original Lease. The proposed actions approve a First Amendment to the Parking Lease with Bank
of America, National Association.
RECOMMENDATION:
Staff recommends the City Council take the following actions:
1)Approve the First Amendment to the Parking Lease with Bank of America, National Association
in substantially final form, subject to minor modifications as approved by the City Manager and
the City Attorney; and
2)Authorize the City Manager to execute the First Amendment to the Parking Lease on behalf of
the City.
APPROVED
CITY COUNCIL
3/16/2020
Approve First Amendment to the Parking Lease with Bank of America
March 16, 2020
Page 2
ANALYSIS:
The original lease contemplated the sale of the City property formerly known as Block 36 on the
southeast corner of Azusa Avenue and Foothill Boulevard to Reg Azusa, LLC. The proposed project
included a certain parcel of real property adjacent to the Bank which was used by its employees and
customers leaving the bank with insufficient amount of parking. In order to address the Bank’s parking
shortage, the City and the Bank negotiated a lease agreement that would lease the parking lot to the
Bank during the construction of the Block 36 project. Due to the economic downturn the proposed Reg
Azusa Block 36 project did not proceed. However, since then, the City has sold Block 36 to Azusa
Block 36 LLC for the development of a mixed use project that includes the certain parcel of real
property adjacent to the Bank. Therefore, the City and the Bank desire to enter into the First Amendment
(Attachment 1) to revise certain provisions of the Original Lease. Such provisions include: clarification
of the Commencement Date and Rent Commencement Date.
The proposed actions approve a First Amendment to the Parking Lease with Bank of America, National
Association.
FISCAL IMPACT:
The fiscal impact associated with the proposed recommendations will result in a Bank payment to the
City in the amount of $800.00 per month, including any outstanding obligations to pay rent the Bank
incurred prior to the effective date of the First Amendment commencing on August 1, 2019 for a period
of (30) months or until the lease is terminated. The lease revenues will be deposited under account 10-
35-645-000-4412.
Prepared by: Reviewed by:
Carina Campos Matt Marquez
Economic Development Specialist Director of Economic and Community
Development
Reviewed and Approved:
Sergio Gonzalez
City Manager
Attachment:
1) First Amendment to Parking Lease – Bank of America
Attachment 1