OSB 14-020RESOLUTION NO. OSB -14 -020
A RESOLUTION OF THE OVERSIGHT BOARD TO THE
SUCCESSOR AGENCY OF THE POWAY REDEVELOPMENT
AGENCY AUTHORIZING THE THIRD AMENDMENT TO THE LEASE
AGREEMENT WITH DESERT OASIS INDUSTRIAL LOFTS, LLC
WHEREAS, pursuant to Health and Safety Code Section 34181(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; and
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
WHEREAS, the former Redevelopment Agency entered into a Lease Agreement
(Lease) with the current tenant 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; and
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 an additional one -year period; and
WHEREAS, in accordance with 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; and
WHEREAS, beginning May 1, 2014, the Successor Agency may extend the
lease at its sole discretion for a period of up to five years; and
WHEREAS, the Successor Agency would like to extend the term of the lease for
an additional one -year period beginning May 1, 2014, by executing the Third
Amendment to the Lease Agreement (Exhibit A); and
WHEREAS, the Lease is a "triple net" lease that generates $144,000 net
revenue annually to the Successor Agency, which is used to offset obligations of the
former Redevelopment Agency and increases the funds available for distribution to the
other taxing entities.
NOW, THEREFORE the Oversight Board to the Successor Agency of 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.
Resolution No. OSB -14 -020
Page 2
Section 2. A duly noticed public meeting having been held, the Oversight
Board hereby authorizes the Successor Agency to execute the Third Amendment to the
Lease Agreement and extend the term of the Lease with Desert Oasis Industrial Lofts,
LLC for an additional one -year period beginning May 1, 2014.
Section 3 This Resolution shall take effect immediately upon its adoption.
PASSED, ADOPTED and APPROVED by the Oversight Board to the Successor
Agency of the Poway Redevelopment Agency at a regular meeting this 26th day of
February, 2014.
--
Bruce Tarzy
Chair
ATTEST:
Sheila R. Cobian, CM—C, Secretary
Resolution No. OSB -14 -020
Page 3
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO)
I, Sheila R. Cobian, CIVIC, Secretary, Successor Agency to the Poway
Redevelopment Agency, do hereby certify under penalty of perjury that the foregoing
Resolution No. OSB -14 -020 was duly adopted by the Oversight Board to the Successor
Agency of the Poway Redevelopment Agency at a meeting of said Oversight Board
held on the 26th day of February, 2014 and that it was so adopted by the following vote:
AYES: TARZY, FONG- SAKAI, LYON, SCOTT, TAM
NOES: NONE
ABSENT: LADERMAN, THOLANDI
DISQUALIFIED: NONE
Sheila R. obian, CIVIC, Secretary
Resolution No. OSB -14 -020
Page 4
Exhibit A
THIRD AMENDMENT TO LEASE AGREEMENT
This THIRD AMENDMENT TO LEASE AGREEMENT ( "Third 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 I" day of May, 2014.
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 were 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
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 for a 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
Resolution No. OSB -14 -020
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11. Successor Agency and Tenant now wish to amend Section 1 of the Lease to extend its term
by an additional one (1) year; and
12. This Third Amendment is necessary to extend the term of the lease for a one -year period
commencing May 1, 2014.
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 a six -year 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, 2015, the
Successor Agency may extend the lease at its sole discretion for a period of up to four years.
Section 2. Except as otherwise amended by this Third Amendment, all other terms and
conditions of the Lease, First Amendment, and Second Amendment shall remain in full force and
effect.
IN WITNESS WHEREOF, the Parties have caused this Third Amendment to be
signed and executed the day and year first above written.
CITY OF POWAY AS SUCCESSOR AGENCY
By: DATED:
Tina M. White, Interim Executive Director
DESERT OASIS INDUSTRIAL LOFTS, LLC
By: DATED:
Paul Goldfarb, Member
By: DATED:
Michelle LaPrise, Member
IM
Chris LaFornara, Member
APPROVED AS TO FORM:
Morgan L. Foley, City Attorney
DATED: