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Title:
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Approval of a Memorandum of Understanding and Lease Agreement with the Wende Museum for the Property Located at 10808 Culver Boulevard (the Former Site of the National Guard Armory).
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City of Culver City, California
Agenda Item Report
RECOMMENDATION:
Staff recommends the City Council approve a Memorandum of Understanding and
Lease Agreement with the Wende Museum for the property located at 10808 Culver
Boulevard (the former site of the National Guard Armory).
BACKGROUND:
At the City Council meeting of December 12, 2011, the City Council received a
presentation from Dr. Justinian Jampol, Executive Director and Founder of the
Wende Museum (Wende). Dr. Jampol conveyed Wende’s interest in moving from its
current home in the Fox Hills neighborhood to the former site of the National Guard
Armory. The City Council favorably received Dr. Jampol’s presentation and
ultimately directed the City Manager to enter into negotiations with Wende.
DISCUSSION:
Pursuant to City Council direction, the City Manager has met on several occasions
with Wende to relocate their collection, museum, and administrative offices to 10808
Culver Boulevard. The parties have come to a tentative agreement, subject to the
City Council’s approval and the following terms and conditions:
• WORK: Wende will provide all funds and complete a scope of work
that will transform the current building and grounds into museum and
administrative office space. The work also provides for the completion
of all planning, building, and zoning entitlements required of the
Meeting Date: 11/12/12 Item Number: A-1
CITY COUNCIL AGENDA ITEM: Approval of a Memorandum of Understanding and
Lease Agreement with the Wende Museum for the Property Located at 10808 Culver
Boulevard (the Former Site of the National Guard Armory)
Contact Person/Dept.: Martin R. Cole Phone Number: (310) 253-6000
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Public Hearing: [ ] Action Item: [X] Attachments: []
Commission Action Required: Yes [] No [X] Date: _______________
Public Notification: Meetings and Agendas – City Council (11/08/12).
Department Approval:
Martin R. Cole (11/07/12)
City Attorney Approval:
Carol Schwab (by H. Baker) (11/07/12)
Chief Financial Officer Approval:
Jeff Muir (11/08/12)
City Manager Approval:
John Nachbar (11/08/12) City of Culver City, California
Agenda Item Report
project, including but not limited to, the determination of the number of
code required parking spaces.
• WORK COMPLETION PERIOD: The work shall be complete within 12
calendar months of the issuance of the notice to proceed by the City.
Upon request by Wende, the City Manager shall grant up to three six-
month extensions (a total potential work completion period of 2.5
years).
• CERTIFICATE OF OCCUPANCY: Upon satisfactory completion of the
work, the City shall issue a Certificate of Occupancy and Wende shall
be provided with a Leasehold Interest in the subject property.
• FULL LEASE PERIOD: 75 years, subject to cancellation in certain
cases (for example, in the case Wende is in default under the
Agreement and fails to cure such default). The Leasehold Interest may
not be cancelled by the City during the first five years, unless Wende is
in default and fails to cure the default. Cancellation by the City after
the first five years and up to the fiftieth year is subject to an early
cancellation penalty (excepting default and failure to cure the default
by Wende).
• EARLY CANCELLATION PENALTY: Beginning in the sixth year of the
leasehold interest and continuing until the expiration of the fiftieth year,
in the case the City determines to cancel the Leasehold Interest, an
Early Cancellation Penalty is payable to Wende by the following
formula: EARLY CANCELLATION PENALTY = {(50 – NUMBER OF
YEARS SUBJECT PROPERTY OCCUPIED BY WENDE) ÷ 50} ×
AMORTIZEABLE RENOVATION COSTS}. The Early Cancellation
Penalty does not apply in the case Wende is in default of the
Agreement or if Wende determines to cancel the Leasehold
Agreement.
• CITY CONTRIBUTIONS: The City will contribute the following: (1)
Value of the Leasehold Interest (the proposed consideration for the
leasehold interest is $1 per year); (2) Sewer Facility Connection Fee;
(3) Art in Public Places Fee – the City will work cooperatively with
Wende to integrate sufficient components into the architectural design
of the renovated building so that it satisfies the art in public places
requirements of the Culver City Municipal Code (CCMC); (4) Parking –
the City will work in good faith with Wende to meet the parking
requirement as calculated using the standards in the CCMC (if either
party finds meeting the parking requirement is infeasible, then either
party may cancel the Agreement). City of Culver City, California
Agenda Item Report
• WENDE CONTRIBUTIONS FOR PUBLIC BENEFIT: Wende will
contribute the following: (1) Free Admission Days – at least one day
per month, members of the public may gain admission to the museum
at no cost; (2) Outreach/Education Opportunities with the Culver City
Unified School District (CCUSD) – Wende shall offer at least three
outreach opportunities to the CCUSD; (3) Wende shall work
cooperatively with other Culver City based arts and cultural
organizations to promote the cultural opportunities available in Culver
City. The City Manager, in consultation with Wende, may approve
alternative proposals to satisfy the public benefit requirements.
• TERMINATION: The Agreement may be terminated under various
circumstances – (1) in the case either party determines meeting the
parking requirement is infeasible; (2) in the case Wende does not
complete the work within the work completion period; (3) once the
Leasehold Interest is granted to Wende, at any time if Wende is in
default under the Agreement and fails to cure the default; (4) After the
first five years of the Leasehold Interest has expired, the City may
terminate the Leasehold Interest (subject to any applicable Early
Cancellation Penalty) with 270 days’ notice (unless Wende is in
default).
Should the City Council approve this item this evening, the City Attorney would be
authorized to prepare the final agreement in accordance with the terms outlined
above, and the City Manager would be authorized to execute the agreement on
behalf of the City.
FISCAL ANALYSIS:
Approval and ultimate execution of the agreement would result the City making
certain contributions to the project as outlined earlier in the staff report. These
contributions are either not from the City’s General Fund or are not direct costs to
the General Fund (in the case of the $1 per year rental rate). Relocation of the
Museum to the former Armory site would significantly improve the site at Wende’s
cost and provide an additional significant cultural resource for the City residents and
visitors. While it is expected the project will have a positive impact on City revenues,
those amounts are difficult to quantify at this time.
ATTACHMENTS:
None. City of Culver City, California
Agenda Item Report
MOTION:
That the City Council:
1. Approve a Memorandum of Understanding and Lease Agreement with the
Wende Museum reflecting the terms contained in this report; and,
2. Authorize the City Attorney to review/prepare the necessary documents; and,
3. Authorize the City Manager to execute such documents on behalf of the City.