City of Culver City, California
Agenda Item Report
Meeting Date: 02/23/15 Item Number: JC-2
JOINT CITY COUNCIL AND SUCCESSOR AGENCY AGENDA ITEM: Approval of a
Parking License Agreement with Consideration of a request from Sony Pictures
Entertainment to Utilize 150 Parking Spaces in the Ince Parking Structure Located
at 9099 Washington Boulevard.
Contact Person/Dept.:
Todd Tipton
Phone Number:
(310) 253-5783
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [] Attachments: [X]
Commission Action Required: Yes [] No [] Date: _______________
Public Notification: (E-Mail) Meetings and Agendas – City Council (02/17/15); Sony
Pictures Entertainment (02/17/15).
Department Approval:
Sol Blumenfeld (02/17/15)
City Attorney/Successor Agency General
Counsel Approval:
Carol Schwab (by H. Baker) (02/17/15)
Chief Financial Officer Approval:
Jeff Muir (02/17/15)
City Manager/Executive Director Approval:
John Nachbar (02/17/15)
RECOMMENDATION:
Staff recommends the City Council and Successor Agency to the Culver City
Redevelopment Agency Board (Successor Agency Board) approve a Parking License
Agreement with Sony Pictures Entertainment (Sony) to utilize 150 parking spaces in
the Ince Parking Structure located at 9099 Washington Boulevard for a one-year
period with two one-year options.
BACKGROUND:
On December 2010 the Culver City Redevelopment Agency (CCRA) entered into a
Parking License Agreement (Agreement) with Sony to utilize 250 parking spaces in
the Ince Parking Structure. The term of the Agreement was one year with three one-
year options; the Agreement expired on December 31, 2014, but was extended until
February 28, 2015 to allow for negotiations. Sony uses the spaces on a regular basis
for their business units that occupy the leased buildings located at 9050 Washington
Boulevard (across the street from the Ince Parking Structure).
In February 2012 Redevelopment Agencies in California were eliminated by the State
Legislature and ownership of the parking structure was subsequently transferred from
the CCRA to the Successor Agency to the Culver City Redevelopment Agency
(Successor Agency).
In January 2014 Sony requested a reduction in the number of spaces permitted by
the Agreement from 250 to 150. The request was due to 100 spaces being unused City of Culver City, California
Agenda Item Report
and the Successor Agency’s need for the spaces as the occupancy in the Ince
Parking Structure increased.
In March 2014 the Successor Agency’s Long Range Property Management Plan was
approved, which permitted transfer of the parking structures from the Successor
Agency to the City of Culver City.
In October 2014, Sony began conversations with the Community Development
Department about extending the agreement and resumed conversations again in
December 2014. In January 2015, Sony submitted a written request (attached) to
extend the Agreement an additional year with two one-year options; the Agreement
can be terminated at the City/Successor Agency’s discretion.
DISCUSSION:
Ince and other parking structures in downtown are currently operating near capacity
and the rental of monthly spaces has been suspended|1010|. Further, pursuant to the
Disposition and Development Agreement with Combined for Parcel B and the Option
and Perpetual Easement Agreement with the Los Angeles County Metropolitan
Transit Authority, 569 spaces are needed in the parking structure to satisfy these
obligations. Specifically, the Parcel B project requires 317 spaces on an ongoing
basis and the Washington/National project requires approximately 252 spaces while
the project is under construction. There are 800 spaces in the Ince Parking
Structure.
Based on discussions with Combined, they believe Parcel B could be conveyed to
them as soon as January 2016 construction on the Washington/National project
would begin after that. Because the draft agreement (attached) includes a provision
that permits the City or Successor Agency to terminate the Agreement without cause
after providing a 30 day notice, staff recommends that Sony’s request to renew the
parking license be granted.
Sony understands that they will be required to find alternate parking if the Parking
License is terminated. Sony indicates that they are aware that other stakeholders will
have priority use of the Ince Parking Structure in the future and that it may not be
available after 2016. Sony is currently addressing future parking options.
FISCAL ANALYSIS:
Sony has agreed to pay the existing monthly rate of $60 per space. This equates to
$900 per day (150 x $60) or $27,000 per month.
City of Culver City, California
Agenda Item Report
ATTACHMENTS:
1. Sony Pictures Entertainment request to extend the Agreement;
2. Draft Agreement.
MOTION:
That the City Council and Successor Agency Board:
Approve a Parking License Agreement with Sony Pictures Entertainment to
utilize 150 parking spaces in the Ince Parking Structure for a one-year period
with two one-year options.
Notes:
|1010| Walker Parking consultants are currently under contract to update the Walker Parking Study that was
finalized in 2010. The update will examine parking occupancy and provide operational recommendations.
MEETING DATE: 2.23.15
AGENDA ITEM: Consideration of a request from Sony Pictures Entertainment to
utilize 150 parking spaces in the Ince Parking Structure located
at 9099 Washington Boulevard.
ATTACHMENTS
Pages
1. Sony Pictures Entertainment request to
extend the Agreement 1
2. Draft Agreement 2 - 5 ATTACHMENT 1
1AUTOMOBILE PARKING LICENSE AGREEMENT
This Automobile Parking License Agreement ("License"), for non-exclusive use of one hundred
and fifty (150) parking spaces, is by and between THE CITY OF CULVER CITY (“City”), a California
Municipal Corporation and the Successor Agency to the Culver City Redevelopment Agency
(“Successor Agency”), a public body corporate and politic (collectively, "Licensors"), whose
address is 9770 Culver Boulevard, Culver City, California 90232-0507, and Sony Pictures
Entertainment Inc., whose address is 10202 W. Washington Blvd., Culver City, CA 90232.
("Licensee").
1) LICENSE. Licensee may use and occupy up to one hundred and fifty (150) parking spaces
("Parking Spaces") per month in the "lnce Parking Facility," located at 9099 Washington
Boulevard, Culver City, California, 90232, during the Term stated below for the following
express purpose: non-exclusive use of Parking Spaces for normal passenger vehicles
only, including light weight pickup trucks. By execution of this License, Licensee
acknowledges receipt of one hundred and fifty (150) key cards ("Key Cards"), which shall
be used by Licensee's guests, agents, employees, or invitees to access the Parking
Spaces. Parkers without Key Cards shall be required to pay the posted daily rate for
parking. In the event that Licensee requests more than one hundred and fifty (150) Key
Cards for any given month in the Term, additional Key Cards may be provided by City,
subject to all terms and conditions of this License, if additional space is available at the
lnce Parking Facility, as determined by the City in its sole and absolute discretion.
2) TERMS/DAYS/HOURS. This License shall be for the following term ("Term"): through
December 31, 2015, subject to two (2) annual extensions if mutually agreed upon, in
writing, by Licensee and Licensors no later than thirty (30) days prior to the expiration of
the Term or any mutually agreed upon annual extensions, unless sooner terminated in
accordance with the terms of this License. The hours of this License shall be seven (7)
days per week, from 7:00 a.m. to close of the Ince Parking Facility, with after-hours
accessibility via Key Card from Culver Boulevard.
3) PAYMENT OF FEES AND DEPOSITS. The parking fee shall be $60 per month per Parking
Space ("Month Parking Fee"), but may be subject to change as determined by Licensors.
The rate for late payment of the Monthly Parking Fee shall be $5.00 per Key Card. The
Monthly Parking Fee shall be paid in advance by Licensee to City, by cash or cashier's
check, on the first day of each month. Parking in non-authorized locations within the
Ince Parking Facility shall entail a $5.00 fee per unauthorized vehicle and potential
vehicle citation. Returned checks shall entail a $25.00 fee. A one-time fee of $6.00 per
Key Card shall be charged at the time of issuance. Key Cards shall remain the property of
Licensee. Lost Key Cards shall not be reissued or exchanged with another party other
than an employee of Licensee without the express written authorization of Licensors.
4) LIABILITY. By execution of this Agreement, Licensee, on behalf of itself, and any persons
or entities that exercise any rights under this License, acknowledges, understands and
ATTACHMENT 2
2agrees that no bailment is created by this License. Neither City nor Successor Agency
("City") assume any liability for any damages to person or property arising out of this
License. Articles left in vehicles are at the vehicle owner's risk. Licensee understands and
expressly agrees that Licensors are not responsible for loss or damage to any vehicle or
its contents by fire, vandalism, theft, or any other cause, nor for loss, damage or injury
by or to other persons within or without of the Ince Parking Facility or any other
individual personal injury of any nature. Licensee expressly acknowledges that Licensors
shall have no duty to provide security, and expressly does not assume any obligation to
provide for the security of the Ince Parking Facility or area or to protect individuals using
the Ince Parking Facility, or vehicles or property in or around the Ince Parking Facility,
from criminal activities.
5) DEFAULT. An event of default shall be deemed to occur should any of the following
events happen:
a. Failure of Licensee to timely pay the any fees or deposits required by this
License.
b. If Licensee, or any of Licensee's guests, agents, employees, invitees (hereinafter
collectively referenced as "Licensee"), causes damage to any persons or personal
or real property in the Ince Parking Facility.
c. Failure of Licensee to obey posted rules of Licensors concerning matters of
security, safety, or preservation of Licensors’ facilities.
d. Failure of Licensee to comply with the terms of this License.
6) TERMINATION. This License may be terminated at any time by either Licensors or
Licensee without cause, with thirty (30) day's written notice. On termination of the
License by Licensee, deposits for any returned Key Cards and any refund of advance
payment of Parking Fees shall be refunded to Licensee within thirty (30) days of
termination, on a pro rata basis, after deducting any amounts owed to Licensors by
Licensee under this License. Any unpaid deposits or fees owed by Licensee to Licensors
shall be paid to Licensors within thirty (30) days of termination. In the event of default,
the Licensors shall notify the Licensee in writing, and Licensors may terminate this
License immediately upon notice to said Licensee, without penalty or liability to
Licensors, and Licensors may retain all Parking Fees previously paid.
7) CONDITIONS.
a. Licensee shall park all vehicles on level four (4) or above of the Ince Parking
Facility unless parking spaces on those levels are unavailable or Licensors direct
otherwise.
ATTACHMENT 2
3b. No parkers will be able to exit the Ince Parking Facility without payment unless
they use an authorized Key Card.
c. Licensors reserve the right to post temporary restrictions to parking for purposes
of facility cleaning or maintenance. If such temporary restrictions impede
Licensee's ability to park on authorized parking levels, then Licensee may park on
levels where parking is available.
d. This License cannot be assigned or transferred.
e. The parties agree that Licensors shall have the right, without further notice to
Licensee, to have towed any vehicle that is parked in violation of this License or
posted rules or regulations.
f. If Licensors are required to file suit to collect any amount owed to Licensors
under this License, Licensors shall be entitled to collect reasonable attorney's
fees for prosecution of that suit.
g. Any notice under this License shall be given in writing through certified mail,
overnight mail, or by personal delivery, and shall be effective upon receipt. For
purposes herein, Notice to the Licensors shall be at:
Attention: Todd Tipton,
9770 Culver Boulevard,
City of Culver City, California 90232-0507
Phone: (310) 253-5783
Fax: (310) 253-5779
Notice to the Licensee shall be at:
Attention: Kristin Cavanaugh
10202 W. Washington Boulevard,
Culver City, CA 90232
Phone: (310) 244-5368
Fax: (310) 244-0099
8) INDEMNIFICATION AND HOLD HARMLESS. Licensee agrees to indemnify, defend, protect
and hold City, Successor Agency and each of their respective officers, boards, officials,
employees, attorneys, agents, insurers, and tenants (each an "Indemnitee" and
collectively “Indemnitees”) free and harmless from any and all loss, liability, claims,
damages and expenses (including, but not limited to, reasonable attorneys' fees and
costs) arising from the exercise of the License and/or right of entry granted under this
License, except to the extent that such loss, liability, claims, damages and expenses
ATTACHMENT 2
4were in part contributed to an Indemnitee’s breach of this License or the active
negligence and/or the willful misconduct of Indemnitees.
The individuals executing this License on behalf of each party hereby represent and warrant
that they are authorized to execute this License on behalf of said party and that each party has
taken all actions required by law to approve the execution of this License.
LICENSORS:
THE CITY OF CULVER CITY, a California municipal corporation
By: ___________________________
Its: ______________________________
THE SUCCESSOR AGENCY TO THE CULVER CITY REDEVELOPMENT AGENCY, a public body
corporate and politic
By: ___________________________
Its: ______________________________
Licensee acknowledges that he, she, or by its agent, has read and understands the terms and
conditions of this License and agrees and accepts all terms and conditions herein.
LICENSEE: SONY PICTURES ENTERTAINMENT INC., a Delaware Corporation
By: ___________________________
Its: ______________________________
ATTACHMENT 2|1013|