Legislation Details

File #: HIST-26880    Version: 1 Subject:
Type: Historical Status: Consent Agenda
In control: HISTORICAL - SUCCESSOR
On agenda: 2/23/2015 Final action: 2/23/2015
Title: 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.
Attachments: 1. JOINT CITY COUNCIL AND SUCCESSOR AGENCY AGENDA ITE - JC-2__15-02-23__CDD__CC and SA__Sony Parking License - FINAL.pdf, 2. JOINT CITY COUNCIL AND SUCCESSOR AGENCY AGENDA ITE - JC-2_15-02-23-ATT_CS_Sony parking.pdf
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|