OSB 16-002 RESOLUTION NO. OSB 16-002
A RESOLUTION OF THE OVERSIGHT BOARD TO THE SUCCESSOR
AGENCY OF THE POWAY REDEVELOPMENT AGENCY
AUTHORIZING THE FIFTH AMENDMENT TO THE LEASE
AGREEMENT WITH DESERT OASIS INDUSTRIAL LOFTS, LLC
WHEREAS, pursuant to Health and Safety code section 374181(e), the Successor
Agency shall determine whether any contracts, agreements, or arrangements between
the dissolved redevelopment agency and any private parties should be terminated or
renegotiated to reduce liabilities and increase net revenues to the taxing entities, and
•
present proposed termination or amendment agreements to the Oversight Board for its
approval;
WHEREAS, Desert Oasis Industrial Lofts, LLC operates a self-storage business
on the former Redevelopment Agency property located at 13033 Poway Road, Poway,
California known as Poway Stoway, and described in the attached Exhibit A;
WHEREAS, the Former Redevelopment Agency entered into a Lease Agreement
(Lease) with the current tenant beginning May 1, 2009, for a three-year term, with two,
one-year extension options, which was assigned to the Successor Agency upon
dissolution of the former Redevelopment Agency;
WHEREAS, in accordance with the provisions of the Lease, the First Amendment
to the Lease Agreement was executed on May 1, 2012, which extended the term of the
Lease for and additional one-year period;
WHEREAS, in accordance with the provisions of the Lease, the Second
Amendment to the Lease Agreement was executed on May 1, 2013, which extended the
term of the Lease for an additional one-year period;
WHEREAS, beginning May 1, 2014, the Successor Agency may extend the lease
at its sole discretion for a period of up to five years;
WHEREAS, in accordance with the provisions of the Lease, the Third Amendment
to the Lease Agreement was executed on May 1, 2014, which extended the term of the
Lease for an additional one-year period;
WHEREAS, in accordance with the provisions of the Lease, the Fourth
Amendment to the Lease Agreement was executed on May 1, 2015, which extended the
term of the Lease for an additional one-year period; and
WHEREAS, beginning May 1, 2016, the Lease has continued on a month-to-month
basis;
Resolution No. OSB 16-002
Page 2
WHEREAS, the Successor Agency would like to extend the term of the Lease for
an additional nine-month period beginning October 1, 2016, by executing the Fifth
Amendment to the Lease Agreement (Exhibit B); and
WHEREAS, the Lease is a "triple net" lease that generates approximately
$149,964 net revenue annually to the Successor Agency, which is used to offset
obligations of the former Redevelopment Agency and increase the funds available for
distribution to the other taxing entities.
NOW, THEREFORE the Oversight Board of the Successor Agency to the Poway
Redevelopment Agency does hereby resolve as follows:
Section 1. The Oversight Board hereby finds and determines that the foregoing
recitals are true and correct.
Section 2. A duly noticed public meeting having been held, the Oversight Board
hereby authorizes the Successor Agency to execute the Fifth Amendment to the Lease
Agreement and extend the term of the Lease with Desert Oasis Industrial Lofts, LLC for
an additional nine-month period beginning October 1, 2016.
Section 3. This Resolution shall take effect immediately upon its adoption.
PASSED, ADOPTED and APPROVED by the Oversight Board of the Successor
Agency to the Poway Redevelopment Agency at a Special Meeting this 21st Day of
September 2016.
A , ,, ,, ,,
Lois Fong-S;kai, Chair
ATTEST:
Z� eld, 'l C, Secretary
Successor Agency to the Poway
Redevelopment Agency
Resolution No. OSB 16-002
Page 3
STATE OF CALIFORNIA )
) ss.
COUNTY OF SAN DIEGO )
I, Nancy Neufeld, Secretary of the Successor Agency to the Poway
Redevelopment Agency, do hereby certify under penalty of perjury that the foregoing
Resolution No. OSB 16-002 was duly adopted by the Oversight Board to the Successor
Agency of the Poway Redevelopment Agency at a meeting of said Board held on the 21st
day of September 2016, and that it was so adopted by the following vote:
AYES: FONG-SAKAI, SCOTT, LYON, CONIGLIO, AZIMZADEH, HERNDON
NOES: NONE
ABSENT: BIERNE
DISQUALIFIED: NONE
Nan y N of Id, MC, Secretary
Successor Agency to the Poway
Redevelopment Agency
APPROVED AS TO FORM:
Morgan Fol, ,r ccessor 'gency Counsel
Resolution No. OSB 16-002
Page 4
EXHIBIT A
LEGAL DESCRIPTION OF THE PROPERTY
PARCEL 1
LOT 2 AND THAT PORTION OF LOT 1 OF K N Q DEVELOPMENT IN THE COUNTY OF SAN
DIEGO, STATE OF CALIFORNIA ACCORDING TO MAP THEREOF NO 8019 FILED IN THE
OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, SEPTEMBER 12, 1974,
BEING A PORTION OF THE NORTHWEST QUARTER OF THE SOUTHWEST QUARTER OF
SECTION 13, TOWNSHIP 14 SOUTH, RANGE 2 WEST, SAN BERNARDINO MERIDIAN,
ACCORDING TO THE U S GOVERNMENT SURVEY APPROVED NOVEMBER 19, 1880,
BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS.
BEGINNING AT THE SOUTHWEST CORNER OF SAID LOT OF MAP NO 8019; THENCE
ALONG THE SOUTHERLY LINE OF SAID MAP 8019 SOUTH 89°08' 30" EAST 281.73 FEET;
THENCE NORTH 1°07' 00" EAST 270.00 FEET TO THE NORTH LINE OF SAID LOT 1; THENCE
NORTH 89° 08' 30" WEST 149.67 FEET TO A TANGENT 30.00 FOOT RADIUS CURVE
CONCAVE NORTHEASTERLY; THENCE ALONG SAID CURVE THROUGH A CENTRAL
ANGLE OF 90°00' 00"A DISTANCE OF 47.12 FEET; THENCE NORTH 89°08' 30"WEST 103.50
FEET TO THE WEST LINE OF SAID MAP 8019; THENCE SOUTH 0°49' 00"WEST 300.00 FEET
TO THE POINT OF BEGINNING.
PARCEL 2
AN EASEMENT AND RIGHT OF WAY FOR ROAD AND PUBLIC UTILITY PURPOSES OVER,
UNDER, ALONG AND ACROSS A STRIP OF LAND 60.00 FEET IN WIDTH, LYING WITHIN THE
NORTHWEST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 13, TOWNSHIP 14
SOUTH, RANGE 2 WEST, SAN BERNARDINO BASE AND MERIDIAN, IN THE COUNTY OF
SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO THE UNITED STATES
GOVERNMENT SURVEY APPROVED NOVEMBER 19, 1880, THE CENTER LINE OF SAID
STRIP OF LAND BEING THE EASTERLY LINE OF THE SOUTHERLY 265.00 FEET OF THE
NORTHERLY 315.00 FEET OF THE WEST HALF OF THE EASTERLY 266.99 FEET OF THE
WESTERLY 466.99 FEET OF THAT PORTION OF THE NORTHWEST QUARTER OF THE
SOUTHWEST QUARTER OF SOUTHWEST QUARTER OF SECTION 13, TOWNSHIP 14
SOUTH, RANGE 2 WEST, SAN BERNADINO BASE AND MERIDIAN IN THE COUNTY OF SAN
DIEGO, STATE OF CALIFORNIA, ACCORDING TO UNITED STATES GOVERNMENT
SURVEY APPROVED NOVEMBER 19, 1880, DESCRIBED AS FOLLOWS.
BEGINNING AT THE NORTHWEST CORNER OF THE SOUTHWEST QUARTER OF SAID
SECTION 13; THENCE ALONG THE WESTERLY LINE OF SAID SOUTHEAST QUARTER,
SOUTH 00°49' 00" WEST, 614.99 FEET TO THE MOST WESTERLY NORTHWEST CORNER
OF LAND DESCRIBED IN DEED TO RUDOLPH WALTER MATZ, ET AL, RECORDED
SEPTEMBER 13, 1956, IN BOOK 6255, PAGE 520 OF OFFICIAL RECORDS; THENCE ALONG
THE BOUNDARY OF SAID MATZ'S LAND AS FOLLOWS SOUTH 89° 08' 30" EAST, 733.99
FEET, AND NORTH 01° 07' 00" EAST, 615.00 FEET TO THE NORTHERLY LINE OF THE
SOUTHWEST QUARTER OF SAID SECTION 13; THENCE ALONG THE NORTHERLY LINE
OF SAID SOUTHWEST QUARTER, NORTH 89°08' 30"WEST TO THE POINT OF BEGINNING.
APN: 317-472-18
Resolution No. OSB 16-002
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EXHIBIT B
FIFTH AMENDMENT TO LEASE AGREEMENT
This FIFTH AMENDMENT TO LEASE AGREEMENT ("Fifth Amendment"), by and
between the City of Poway, solely in its capacity as successor agency to the Poway
Redevelopment Agency ("Successor Agency") and Desert Oasis Industrial Lofts, LLC, a
California Limited Liability Company ("Tenant"), is entered into effective this 1st day of
October, 2016.
RECITALS
1. The Poway Redevelopment Agency (the "Redevelopment Agency") and Tenant's
predecessors in interest, Avalon Property Development, a California corporation
("Avalon") and Chris LaFornara ("LaFornara") (collectively, Avalon and LaFornara, the
"Original Tenants") entered into that certain Lease with a term beginning May 1, 2009, by
which Redevelopment Agency and the Original Tenants established the terms and
conditions for use of the Redevelopment Agency-owned real property located at 13033
Poway Road, Poway, California ("Leased Premises"); and
2. Section 5 of the Lease allows for the Tenant to assign the Lease to a corporation
with which Tenant may merge or consolidate, to any subsidiary of Tenant, to any
corporation under common control with Tenant, or to a purchaser of substantially all of
Tenant's assets; and
3. Subsequent to execution of the Lease, Avalon dissolved and ownership of
Avalon's business operations and the Lease was sold and assigned by the Original
Tenants to Desert Oasis Industrial Lofts, LLC, of which LaFornara is included as a
member; and
4. On February 1, 2012, the Redevelopment Agency was dissolved by operation of
law, and, pursuant to California Health and Safety Code section 37173 the City became
the Successor Agency to the former Redevelopment Agency; and
5. Section 20 of the Lease allows for the Redevelopment Agency to assign the Lease
to the City of Poway; and
6. As a result of action taken prior to the dissolution of the Redevelopment Agency
on February 1, 2012, and in accordance with Health and Safety Code section 37173, the
Leased Premises and the Lease have been assigned to the Successor Agency; and
7. Section 1 of the Lease provides for a three-year lease term, with two one-year
extension options to be exercised at the sole discretion of the Successor Agency; and
Resolution No. OSB 16-002
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8. On May 1, 2012, the First Amendment to the Lease Agreement ("First
Amendment") was executed by Tenant and Successor Agency in order to extend the term
of the Lease fora period of one (1) year; and
9. On May 1, 2013, the Second Amendment to the Lease Agreement ("Second
Amendment") was executed by Tenant and Successor Agency in order to extend the.term
of the Lease for a period of one (1) year; and
10. Section 1 of the Lease additionally provides that beginning May 1, 2014, the
Successor Agency may extend the Lease at its sole discretion for a period of up to five
years; and
11. On May 1, 2014, the Third Amendment to the Lease Agreement ("Third
Amendment")was executed by Tenant and Successor Agency in order to extend the term
of the Lease for a period of one (1) year; and
12. On May 1, 2015, the Fourth Amendment to the Lease Agreement ("Fourth
Amendment") was executed by Tenant and Successor Agency in order to extend the term
of the Lease for a period of one (1) year; and
13. Beginning May 1, 2016, the Lease has continued on a month-to-month basis; and
14. The Successor Agency and Tenant now wish to amend Section 1 of the Lease to
extend its term by an additional nine (9) months; and
15. This Fifth Amendment is necessary to extend the term of the lease for a nine (9)
month period commencing October 1, 2016.
NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:
Section 1. Section 1 of the Lease is hereby amended to read as follows:
1. Lease Term. Successor Agency hereby leases to Tenant the property
commonly known as 13033 Poway Road, Poway, California ("Leased Premises"), and
Tenant hereby leases the same from Successor Agency, for an eight-year and two-
month term commencing on May 1, 2009 ("Commencement Date"). At any time after
May 1, 2012, the Successor Agency may terminate the lease by providing Tenant with
six months written notice. Beginning May 1, 2017, the Successor Agency may extend
the lease at its sole discretion for a period of up to two years.
Section 2. Except as otherwise amended by this Fifth Amendment, all other terms and
conditions of the Lease, First Amendment, Second Amendment, Third Amendment, and
Fourth Amendment shall remain in full force and effect.
IN WITNESS WHEREOF, the Parties have caused this Fifth Amendment to be
signed and executed the day and year first above written.
Resolution No. OSB 16-002
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CITY OF POWAY AS SUCCESSOR AGENCY
By: DATED:
Tina White, Executive Director
DESERT OASIS INDUSTRIAL LOFTS, LLC
By: DATED:
Paul Goldfarb, Member
By: DATED:
Michelle LaPrise, Member
By: DATED:
Chris LaFornara, Member
APPROVED AS TO FORM:
Morgan L. Foley, City Attorney