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SARATOGA CITY COUNCIL
MEETING DATE: December 16, 2009 AGENDA ITEM:
DEPARTMENT: City Manager CITY MANAGER: Dave Anderson
PREPARED BY: Richard Taylor, City Attorney
SUBJECT: Amendment to Lease Agreement with Hakone Foundation
RECOMMENDED ACTION:
Approve amendment to lease agreement with Hakone Foundation providing for matching funds of
$250,000 towards the cost of constructing a visitor and conference center at Hakone Gardens.
REPORT SUMMARY:
In 2006 the City Council agreed to amend the lease agreement with the Hakone Foundation to
provide for City financial support for construction of a visitor and conference center. The
amendment provided for $250,000 in matching support subject to various conditions, The
amendment expires December 31 of this year. The Hakone Foundation has requested that the
City Council consider the attached amendment providing a renewed pledge of support.
BACKGROUND:
The Foundation is seeking private support for development of a visitor and conference center at
Hakone Gardens. The Foundation believes that City support, in the form of a pledge of matching
funds, will help support fundraising. The attached amendment would pledge $250,000 in
matching funds. The funds would be contingent upon the Foundation’s completion and the City’s
approval of the Hakone Gardens Master Plan and the visitor and conference center design and the
Foundation’s success in raising at least $750,000 in private contributions for the visitor and
conference center. The pledge would expire December 31, 2013.
FISCAL IMPACTS:
No immediate expenditure of funds would be required. Upon the Foundation’s successful
fundraising and completion of the required plans, the City would be obligated to contribute
$250,000 towards construction of the visitor and conference center.
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION:
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The Foundation would not be able to inform prospective donors of the City’s financial support for
the visitor and conference center.
ALTERNATIVE ACTION:
Give direction to staff for changes.
FOLLOW UP ACTION:
Execute lease amendment.
ADVERTISING, NOTICING AND PUBLIC CONTACT:
Notice for this meeting.
ATTACHMENTS:
Proposed Lease Amendment.
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SECOND AMENDMENT TO
LEASE BETWEEN
THE CITY OF SARATOGA
AND
THE HAKONE FOUNDATION
This agreement amends the lease agreement (hereinafter “Lease”), effective as of May 1,
2005 (and amended effective November 14, 2006), by and between the City of Saratoga, a
Municipal Corporation (hereinafter "Landlord"), located in the County of Santa Clara, State
of California and the Hakone Foundation, a not for profit corporation organized under the
laws of the State of California (hereafter "Tenant"), pertaining to the City owned property
located at 21000 Big Basin Way, Saratoga, California. This agreement become effective on
the date last signed below.
1. Landlord and Tenant hereby agree that section 9.3 of the Lease is hereby replaced in
its entirety with the following:
9.3 Master Plan. Landlord acknowledges that Tenant is intending to develop a
Master Plan for the premises, which plan shall tentatively include the
construction of a visitor and conference center, facility for the serving of tea
and light snacks, gift shop, and other facilities on the premises including a
schedule for plan implementation. Tenant believes it is necessary to increase
the revenue generating capability of the premises in order to fully utilize its
value and usefulness as a cultural and artistic center, and to this end considers it
imperative that it be more fully developed with buildings serving those ends.
Tenant shall provide a copy to Landlord of the Master Plan for Hakone
Gardens as soon as it is prepared and Landlord shall have the opportunity to
review and approve, which approval shall not be unreasonably withheld, such
Master Plan prior to Tenant’s undertaking any major capital improvements to
the premises. Landlord shall contribute up to $250,000 to the cost of
constructing the visitor and conference center following (1) approval of the
Master Plan, (2) approval of the visitor and conference center design, and (3)
evidence that Tenant has received private contributions dedicated to the visitor
and conference center of at least $750,000; provided, however that no
contribution shall be required unless each of these conditions has been satisfied
prior to December 31, 2013. Tenant shall make reasonable efforts to
implement the Master Plan. Tenant shall have the right to amend such Master
Plan from time to time, subject to Landlord’s approval, which shall not be
unreasonably withheld. Until such time as a visitor and conference center have
been completed Tenant shall file a report with Landlord not later than
December 31 of each year describing Tenant’s progress with regard to (1)
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development and implementation of the Master Plan, (2) design and
construction of the visitor and conference center, and (3) receipt of private
contributions dedicated to the visitor and conference center.
2. The Lease shall remain unchanged in all respects other than the replacement of Section
9.3 as described above.
Landlord Tenant
By: _________________________
Kathleen King,
Mayor
Date: ________________________
By: _________________________
Lon Saavedra
Execcutive Director, Hakone Foundation
Date: ________________________
Attest:
__________________________
Ann Sullivan, City Clerk
Date: ________________________
Attest:
__________________________
Secretary of the Board, Hakone Foundation
Date: ________________________
Approved as to Form:
__________________________
Richard Taylor, City Attorney
Date: ________________________
Approved as to Form:
__________________________
General Counsel, Hakone Foundation
Date: ________________________