DATE: January 11, 2022
SUBJECT:
Title
ORDINANCE GRANTING LEASE AMENDMENT NO. 19 PROVIDING FOR A 9-YEAR LEASE EXTENSION TO THE CHULA VISTA MARINA, LP, DBA CHULA VISTA MARINA FOR THE CHULA VISTA MARINA LOCATED AT THE NORTHERN MARINA IN THE CHULA VISTA MARINA BASIN WITHIN THE CHULA VISTA BAYFRONT
Body
EXECUTIVE SUMMARY:
Chula Vista Marina is located at 550 Marina Parkway at the intersection of Marina Parkway and Sandpiper Way in the Harbor District of the Chula Vista Bayfront, as identified on the attached map (Attachment A). In 1981, Chula Vista Marina, LP, a California limited partnership1 (Tenant), entered into a 40-year ground lease with the San Diego Unified Port District (District) for a 507-slip marina, restaurant and marina services buildings (Ground Lease)2. The Ground Lease has been amended eighteen (18) times. Paragraph 44 of the Ground Lease, which was added pursuant to Amendment 18, contains a procedure setting forth an agreement regarding a conditional lease extension to be documented in a new lease for the leased premises.
Over the course of negotiations and discussions with Tenant on a potential new lease pursuant with the terms of Amendment 18, a disagreement arose over the parties' respective rights and obligations under such amendment. In order to fully resolve any claims related to the terms of Paragraph 44 and Amendment 18, the parties agreed, subject to Board approval, to enter into an Amendment 19 in the form attached hereto as Attachment B that provides the following:
* Extension of the Ground Lease term for nine (9) additional years;
* Deletion of Paragraph 44, which was added pursuant to Amendment 18;
* Mutual waiver and release of any and all claims, known and unknown, related to Paragraph 44 and Amendment 18, including a waiver of California Civil Code Section 1542; and
* Acknowledgement by Tenant that the effect of the aforementioned release is that any future extension of the Ground Lease and/or decision to enter into a ne...
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