Termination Agreement to remove Exhibit B to 1983 Corporation Grant Deed be Industries, Inc., and the CoSD, & for the First Amendment ....

The proposed actions include: (1) a Termination Agreement to remove Exhibit B to 1983 Corporation Grant Deed between Ocean Industries, Inc. (successor by merger to Watt Industries/San Diego, Inc.) and the City of San Diego (City) filed in the Office of the County Recorder of San Diego County as Document Number 382984 on October 24, 1983 (“Termination Agreement”) and (2) a First Amendment to City of San Diego Percentage Ground Lease (“First Amendment”) by and between the City and Surf Sports, LLC (“Surf”). Removing the 1983 grant deed restrictions does not mean the City will increase the number of large events held on the property each year, as concurrently with the Termination Agreement, the City would approve the First Amendment to the Percentage Ground Lease to remove references to the grant deed in the lease and to add in provisions that would require Surf to continue the same activities and programs that have occurred on the site for decades. The First Amendment clarifies the definition of what a large event is for both sporting events and non-sporting events and provides a metric by which non-sporting events can be measured and counted against the 40-day limit on large events. This will enable the City to better enforce the limitations on large events going forward. For sporting events, a large event will be defined as any event that uses 75 percent or more of the playing fields. This typically means 18 or more of the 25 playing fields utilized for sporting tournaments; however, in the event a standard sized playing field is broken down into two smaller fields for younger players, it will only count as one field for purposes of calculating the number of fields being used. Adding this clarity through the First Amendment will assist the City with its ongoing lease enforcement efforts.