Title
Resolution approving the First Amendment to Parcel C Lease and Second Amendment to the Fingers Lease between Rest Investments and the City and authorizing the City Manager to execute the Amendments.
Body
WHEREAS, the City and Rest Investments (“Tenant”) are parties to that certain ground lease dated June 12, 1998, pursuant to which the Tenant leases a City-owned parcel identified in Section 1.1 and Exhibit B to the ground lease, which is also known as the “Fingers Parcel”. The ground lease was amended on March 18, 2008, and is referred to by the parties as the “Fingers Lease”; and
WHEREAS, the City and Tenant are also parties to that certain ground lease dated as of October 16, 2016, for land assigned assessor parcel number (APN) 015-180-120 (“Parcel C”). This ground lease is referred to by the parties as the “Parcel C Lease”; and
WHEREAS, in Spring of 2024, the Tenant approached the City to discuss repayment of outstanding rent due under the two Leases and after such discussions, the Tenant paid all agreed upon outstanding rent; and
WHEREAS, as part of the discussions related to the repayment, the City and the Tenant negotiated the draft Lease Amendments to clarify the methodology for calculation of the base rent and Consumer Price Index (CPI) rent adjustments under the Leases to avoid any future confusion and potential disagreement between the parties, as well provide for mutual releases of any claims pertaining to prior disagreements between the parties related to the Leases; and
WHEREAS, the City and Tenant desire to amend the Fingers Lease and the Parcel C Lease as described above and as memorialized in the draft First Amendment to the Parcel C Lease, attached hereto and incorporated herein as Exhibit A and in the draft Second Amendment to the Fingers Lease, attached hereto and incorporated herein as Exhibit B; and
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of South San Francisco hereby approves the First Amendment to the Parcel C Lease, attached hereto and incorporated herein as Exhibit A and the Second Amendment to the Fingers Lease, attached hereto and incorporated herein as Exhibit B.
BE IT FURTHER RESOLVED that the City Manager is hereby authorized to execute the Amendments on behalf of the City, subject to any minor modifications, corrections, or clarifications that do not otherwise materially increase the City’s obligations thereunder as approved by the City Attorney.
BE IT FURTHER RESOLVED that the City Manager is hereby authorized to take any other actions necessary to carry out the intent of this resolution.
* * * * *