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SD Comm. College District
PUBLISHED: Wednesday November 21, 2012

BOARD OF TRUSTEES
SAN DIEGO COMMUNITY COLLEGE DISTRICT
SAN DIEGO, CALIFORNIA
---

Resolution of Intention to Lease )
School Property Not Needed for )
School Classroom Buildings and )
Fixing the Time and Place at )
Which Bids Shall be Considered )

On motion of Member Schwandt, seconded by Member Senour, the following Resolution is adopted:

WHEREAS, the San Diego Community College District ("District") owns real property located in the City of San Diego, County of San Diego, State of California, consisting of approximately Ninety Thousand (90,000) square feet. Property "A" is located on the full block bounded by E and F Streets and 12th and 13th Streets, identified as APN 534-346-01 and consists of approximately Sixty Thousand (60,000) square feet. Property "B" is located on the block bounded by E and F Streets and 13th and 14th Streets, identified as APNs 534-345-01, 08, 09, 11 and 12, and consists of approximately Thirty Thousand (30,000) square feet ("Site" or "Property"); and

WHEREAS, this Board finds that the District Property is surplus property pursuant to California Government Code Section 54220 et seq. and is not now, and will not at the time of delivery of possession be needed by the District for school classroom buildings; and

WHEREAS, this Board has complied with the applicable requirements of the California Government and Education Codes regulating the long-term lease of property by the District as lessor and provided proper notice pursuant to California Government Code Section 54222; and

WHEREAS, this Board has determined that it is in the best interest of the District to lease the surplus District Property to a responsible bidder,

NOW, THEREFORE, BE IT RESOLVED, that this Board hereby declares its intention to commence the process necessary to lease the surplus District Property in accordance with applicable law on terms and conditions contained in Exhibit "A" to this Resolution and subject to the following:

1. The lease term of the District Property shall be for a period of 75 to 99 years from the Term Commencement Date; and
2. The minimum acceptable bid for monthly base rent for the Property "A" shall be $56,525. Once a lease has been entered into, the monthly rent shall increase for subsequent rent periods in accordance with the terms of the Ground Lease; and
3. The minimum acceptable bid for monthly base rent for the Property "B" shall be $26,117. Once a lease has been entered into, the monthly rent shall increase for subsequent rent periods in accordance with the terms of the Ground Lease; and
4. The amounts paid by Lessee and designated as non-refundable, are reasonable estimates of the damages that at the time might be otherwise difficult to fix and ascertain. The Lessee agrees that by submission of a bid, that said amounts are reasonable estimates of damages and agrees that said amounts shall be retained by the District as liquidated damages, and not as penalty; and
5. The District shall not pay a commission or fee to any agent or person representing a proposer in the matter of this Ground Lease; and
6. Proposals shall not be. accepted from employees of the San Diego Community College District.

BE IT FURTHER RESOLVED, that Notice is hereby given that all sealed, written proposals ("bids") for the lease of the
surplus District Property must be delivered to the Vice Chancellor, Facilities Management, or his designee at Room 310, 3375 Camino del Rio South, San Diego, California 92108 on or before February 5, 2013. No sealed bids will be accepted after 2:00 p.m.
BE IT FURTHER RESOLVED, that this Board hereby authorizes the Vice Chancellor, Facilities Management, or his designee to open and read sealed proposals to lease at 3375 Camino del Rio South, San Diego, California 92108 in February 2013, the exact date and time will be provided to all bidders on or before February 5, 2013.

BE IT FURTHER RESOLVED, the Vice Chancellor, Facilities Management, be and is hereby authorized and directed to publish notice of this Resolution in three public places in the District not less than fifteen (15) days before February 5, 2013, and to
publish a copy of this Resolution and Notice not less than once a week for three (3) successive weeks before February 5, 2013 in a newspaper of regular circulation in the District,

PASSED AND ADOPTED by the Board of Trustees of the San Diego Community College District of San Diego County, California, this 181 day of October, 2012, by the following vote, which constitutes a two-thirds majority vote of said Board, as required by law:

AYES: Graham, Grosch, Schwandt, Senour, Zschiesche
NOES: None
ABSENT: None
ABSTAIN: None

STATE OF CALIFORNIA )
) ss.
COUNTY OF SAN DIEGO)

I, Amanda Ficken-Davis, Recording Secretary of the San Diego Community College District of San Diego County, California, do hereby certify that the foregoing is a full, true, and correct copy of the Resolution duly adopted by said Board at a regular meeting thereof at the time and place and by the votes above stated, which Resolution is on file and of record in the office of said Board.

/s/ Amanda Ficken-Davis
Recording Sec etary of the San Diego
Community College District
APPROVED AS TO FORM:
BY: Sandra J. Brower
Attorney for San Diego Community College District
Exhibit "A"
Bid Terms

1. The Property may be leased pursuant to the terms described herein. The SanDiego Community College District ("SDCCD") requires a single Lessee for both Property "A" and "B" or one Lessee for Property "A" and a different
Lessee for Property "B".
2. Each written bid must be submitted on the District's Bid Form, available as part of the Bidder Information Packet, which is available from San Diego Community College District Facilities Management, Room 310, 3375 Camino del Rio South, San Diego, California 92108, attention: David Backensto, (619) 388-6546, dbackens@sdccd.edu. Each bidder, at the time of submission of its bid, must deliver to the District a certified check or cashier's check in the amount of $25,000 for each Property "A" and "B," as an initial bid deposit ("Initial Deposit") payable to the San Diego Community College District. The Initial Deposit shall not be placed in escrow but shall be held by the District. The completed Bid Form, Initial Deposit, and other required information must be placed in a sealed envelope marked "Bid for the Surplus District Property," and identify on the outside of the envelope, the bidder's name and
telephone and/or email address.
3. At the time and place provided in the Resolution of Intention to Lease, the sealed bids will be opened and examined by the Vice Chancellor, Facilities Management, or his designee.
4. The final acceptance or rejection by the District Board of a responsible written bid may be made during a regular
session of this Board to be held no later than 10 days after the bid opening. After acceptance of a bid (the "Bid Award"), the District and the successful bidder shall enter into negotiations of a ground lease for the Property
consistent with the provisions of the accepted bid and containing other provisions as the District may require ("Lease").
5. The Board reserves the right to reject any and all bids and to withdraw the Property from being leased at any time. This Board also reserves the right to waive any and all defects in bids and to waive technicalities. The Board
reserves the right to terminate negotiations with the awarded bidder based on the information provided to the District as required in Section 12 below. If the District accepts a bid, the District may accept the highest bid made by the most responsible bidder that materially conforms to the terms and conditions specified in this
Resolution.
6. The bidder is responsible for inspecting the Property prior to submitting a bid. The District makes no warranties
whatsoever concerning the exact area of the site, or the condition of the site, or any of the improvements thereon.
7. Upon final acceptance by the District, if any, of a bid, the Initial Deposits of the unsuccessful bidders will be returned to them.
8. The bidder acknowledges the Lease shall be subject to the City of San Diego's current land use and zoning
designation on the Property. Lessee shall be responsible for compliance with any and all applicable
regulations for development of the Property.
9. The bidder's rights and obligations shall not be assignable without the prior written consent of the District. Said consent may be granted or withheld at the District's sole discretion.
10. In the event any legal action or litigation is undertaken by the District to enforce the provisions of the bid and
agreement to lease, the bidder agrees to pay reasonable attorney fees incurred by the District.
11. The Initial Deposit of the successful bidder shall become non-refundable and shall belong to the District without
further action upon final acceptance of the.bid by the Board, at which time the successful bidder shall deposit with the Vice Chancellor, Facilities Management, or his designee at Room 310, 3375 Camino del Rio South, San Diego,
California 92108, within three (3) business days, an additional sum of $50,000 for each Property ("Additional
Deposit"), provided, however, that the successful bidder shall have ninety (90) days· commencing on the date the
Additional Deposit is made (the "Due Diligence Period") to satisfy itself that the City of San Diego would be willing to allow the successful bidder's contemplated project to go forward. In the event the successful bidder fails to deliver notice to the Vice Chancellor, Facilities Management, or his designee at Room 310, 3375 Camino del Rio South, San Diego, California 92108, of its intention not to proceed with the Lease of the Property ("Cancellation Notice") prior to the end of the Due Diligence Period, the Additional Deposit shall immediately become non-refundable. In the event the successful bidder fails to execute the Lease and consummate the transaction as described herein, the
Initial Deposit and the Additional Deposit shall be forfeited by the bidder and retained by the District as liquidated damages for the period the Property has been kept off the market due to the acceptance of said successful bid. The foregoing is without limitation or waiver of all other equitable and legal rights and remedies of the District with respect to the successful bidder's failure to execute the lease and consummate the transaction, including without limitation an action at law for damages. Further, District shall have the right, in its sole and absolute discretion, to terminate
negotiations with the successful bidder at any time after the ninetieth (90th) day after the Bid Award in the event a Lease has not been signed by such time. In such an event, the Initial Deposit and the Additional Deposit shall be kept by the District and the successful bidder shall be responsible for its own costs incurred with respect to the proposed transaction, except as provided in Section 12 below.

The following is a summary of deposits required and their disposition:

When Deposit Amount Becomes Returned by
Made Non-Refundable District

Initial Deposit at $25,000 Upon award of Bid Upon Rejection of
time Bid Submitted CERTIFIED OR to bidder Bid
CASHIER’S
. CHECK (per
Property)

Additional Deposit $50,000 Failure to deliver Upon Delivery of
within three (3) CERTIFIED OR Cancellation Notice Cancellation Notice
business days of CASHIER’S to District prior to before expiration of
Bid Award CHECK (per expiration of Due Due Diligence
Property) Diligence Period Period or District
rejection

The total amount of non-refundable deposits shall be applied toward the "Security Deposit" for the Leasehold subject to the terms and conditions of the Lease Agreement.

12. The Lease shall be subject to such other terms and conditions as the District may require, including, but not limited to, District's review and approval of the status of the entity making the bid. Accompanying the Bid and Initial Deposit provided above, Lessee shall provide District with information regarding the financial condition of Lessee and Lessee's guarantor(s), which may include: information demonstrating the overall financial strength of the
development team and demonstrating the ability to provide necessary capital for funding predevelopment activities, securing construction and permanent loan financing, providing required equity either directly and/or with capital
partners, and providing funding for ongoing operations (including maintenance, reserves, etc.). The information shall also demonstrate Lessee's involvement in financing structures for projects similar to the proposed Project and
provide any information which would indicate a current relationship with financial resources who have demonstrated an interest in financing the proposed Project. This information may include current prospectuses, financial
statements, balance sheets and income statements. District's acceptance of a bid shall not constitute a binding agreement with District for the lease of the Property, and any such binding obligation to lease shall occur, if at all, upon the execution of the Lease. In the event District and the successful bidder are not able to agree on all terms of the Lease or bidder cannot perform financially under the lease to the District's satisfaction based on the information required above, then the District may terminate negotiations with the successful bidder, open negotiations with the second responsible bidder and/or request new bids to lease. All deposits held by District shall be retained by District to the extent each such deposit has become non-refundable. Should the District determine based on the
information provided above that bidder is non-responsible the Additional Deposit shall be refunded and the
transaction shall be terminated. If negotiations are terminated by the District as provided herein, such termination shall be without penalty or liability of the District to the successful bidder. If second responsible bidder is selected, bidder shall be required to resubmit initial and additional deposits prior to entering into negotiations.
13. Each bidder should include in its bid proposal the terms of the Lease as provided in the Draft Lease Agreement
(included in the Bidder Information Packet) including, but not limited to:
i. Monthly Rent Amount and proposed term
ii. Proposed Use of the Premises
14. District's obligations to lease the Property must be in substantially the same form as the Draft Lease Agreement. The terms and conditions of the Draft Lease Agreement may not be materially altered; however, the following sections
define the terms which must be included in the Lease Agreement and are non-negotiable:
i. Term of lease is 75-99 years as provided in the Draft Lease Agreement; and
ii. Use. Use provisions as provided in the Draft Lease Agreement; and
iii. Rent increase terms provided in the Draft Lease Agreement; and
iv. Assignment and Subletting provisions as provided in the Draft Lease Agreement; and
v. Insurance and Indemnity provisions as provided in the Draft Lease Agreement; and
vi. Improvements, Alterations and Repairs provisions as provided in the Draft Lease Agreement.
Pub. Nov 7, 14, 21-00104694


SD Comm. College District
PUBLISHED: Wednesday November 21, 2012


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