CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
10/24/2022
1 SUBJECT:
Adoption of a Resolution of the City Council of the City of Pacifica approving the Second Amendment to the Lease Agreement between the City of Pacifica and Stephen Johnson Photography for the premises located at 1220-C Linda Mar Boulevard (located in the Pacifica Center for the Arts) and finding the lease categorically exempt from the California Environmental Quality Act (“CEQA”).
RECOMMENDED ACTION:
Move to adopt the Resolution of the City Council of the City of Pacifica approving the Second Amendment to the Lease Agreement between the City of Pacifica and Stephen Johnson Photography for the premises located at 1220-C Linda Mar Boulevard (located in the Pacifica Center for the Arts); authorizing the City Manager to execute the Second Amendment to the Lease Agreement and finding the lease categorically exempt from the California Environmental Quality Act (“CEQA”).
STAFF CONTACT:
Michael Perez, Parks, Beaches and Recreation Department Director (650) 738-7381
[email protected]
BACKGROUND/DISCUSSION:
Stephen Johnson Photography has been leasing the premises at 1220-C Linda Mar (“Premises”) for 18 years, functioning as an upscale photography studio, gallery, and teaching facility.
The initial term of the current Lease, which was signed on October 28, 2019, was for a period of one (1) year with two (2) options to renew for additional one (1) year periods, for a total of three (3) years. The monthly Base Rent was $2,079.35 per month for a total of $24,952.20 per year.
During the Initial Term of the Lease and the first extension, a portion of the Base Rent was adjusted based on professional photographic services rendered by Mr. Johnson to the City thereby reducing the Base Rent by a total amount of twelve thousand dollars ($12,000) per year. (“Base Rent Adjustment”). This Base Rent Adjustment option was exercised by the City in year two. A lease amendment (First Amendment) became effective as of November 1, 2021, to allow for the continuation of an offset to rent via photographic services through the final year of the lease, which expires on October 31, 2022.
The City and Stephen Johnson Photography wish to extend the Term of the Lease Agreement for an additional one-year term from the Effective Date of the Second Amendment, which is November 1, 2022. The monthly Base Rent will be $2,186.22 per month for a total of $26,234.64 per year. Although this Second Amendment no longer includes the Base Rent Adjustment, Stephen Johnson Photography will also continue to provide photographic services still owed and outstanding to the City as part of the initial Lease and First Amendment.
ALTERNATIVE ACTION:
The City Council may choose not to approve the Second Amendment, in which case, City staff will continue to work with Mr. Johnson to enter into a new lease or locate a new tenant.
Pacifica City Council 2
October 24, 2022
RELATION TO CITY COUNCIL GOALS AND WORK PLAN:
This action helps to support Fiscal Sustainability and Stewardship of City Infrastructure. “Fiscal Sustainability” includes investing in economic development to increase revenues, funding a reserve/emergency fund, and being well prepared for grant opportunities.
“Stewardship of City Infrastructure” includes repairing/replacing outdated city facilities such as city hall, the libraries, fire stations, etc., improving streets, and responding to impacts of sea level rise.
Approving the proposed Second Amendment would allow the City to receive income to offset the cost of maintenance of the Pacifica Center for the Arts.
CEQA:
Approval of the Second Amendment to the Lease is exempt from the provisions of the California Environmental Quality Act (CEQA), pursuant to the statute (Public Resources Code Section 21000, et seq.) and the CEQA Guidelines (14 Cal. Code Regs. 15000 et. seq.), under Section 15301 as a Class 2 Categorical Exemption as there will be no expansion of previous use beyond that existing at the time of the City’s determination.
FISCAL IMPACT:
Annual revenue in the amount of $26,234.64
ORIGINATED BY:
Parks, Beaches & Recreation Department
ATTACHMENT LIST:
Exhibit A: Second Amendment to Tenant Lease.Stephen Johnson (PDF) Attachment B: Stephen Johnson Lease 2019 (Final) (10.28.19) (PDF) Attachment C: FIRST AMENDMENT TO TENANT LEASE.v2 (003) with exhibit Jan 2022.docx (PDF)
Pacifica City Council 3
October 24, 2022
RESOLUTION NO. _________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PACIFICA
APPROVING THE SECOND AMENDMENT TO THE LEASE AGREEMENT BETWEEN THE
CITY OF PACIFICA AND STEPHEN JOHNSON PHOTOGRAPHY FOR THE PREMISES LOCATED AT 1220-C LINDA MAR BOULEVARD (LOCATED IN THE PACIFICA CENTER FOR THE ARTS FACILITY).
WHEREAS, the City of Pacifica is the owner of the property located at 1220 Linda Mar Boulevard, Pacifica, California, depicted on Exhibit A attached hereto (“Premises”); and WHEREAS, Stephen Johnson Photography has leased the Premises located on this property for 18 years, functioning as an upscale photography studio, gallery and teaching facility; and
WHEREAS, the City and Stephen Johnson Photography wish to amend the current lease to allow for the continuation of the current lease for an additional year; and WHEREAS, the City desires to implement a Second Amendment to the Lease Agreement with Stephen Johnson Photography for use of the Premises for one additional year.
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Pacifica as follows:
1. The City Council hereby finds that the approval of the Second Amendment to the Lease Agreement is exempt from the provisions of the California Environmental Quality Act (CEQA), pursuant to the statute (Public Resources Code Section 21000, et seq.) and the CEQA Guidelines (14 Cal. Code Regs. 15000 et. seq.), under Section 15301 as a Class 2 Categorical Exemption as there will be no expansion of previous use beyond that existing at the time of the City’s determination.
2. The City Council herby approves the Second Amendment to the Lease Agreement between the City of Pacifica and Stephen Johnson Photography, attached hereto.
2. The City Manager is hereby authorized to execute the Second Amendment to the Lease Agreement in the form attached hereto as Exhibit A, with minor revisions that may be approved by the City Manager and City Attorney, and to execute any other necessary documents to effectuate the terms of the Second Amendment and take all steps necessary to carry it into effect.
• • • • •
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Pacifica, California, held on the 24th day of October, 2022, by the following vote:
AYES, Councilmembers:
NOES, Councilmembers:
ABSENT, Councilmembers:
ABSTAIN, Councilmembers:
Mary Bier, Mayor
Pacifica City Council 4
October 24, 2022
ATTEST: APPROVED AS TO FORM:
______________________________ ______________________________ Sarah Coffey, City Clerk Michelle Kenyon, City Attorney