News Alert: Downtown Needles, CA: Needles City Council will today determine to declare or extend an agreement and lease with Needles Chamber of Commerce regarding Needles Visitor Center.

By: Zachary Lopez (ZachNews):

Source: Needles City Clerk Dale Jones (Information and Agenda Packet):

Downtown Needles, California: Members of the Needles City Council will  determine to declare or extend an agreement and lease with Needles Chamber of Commerce regarding Needles Visitor Center during their regular meeting being held at 6:00 p.m. PT on Tuesday, January 25th, 2022 inside the Needles City Council Chambers located at 1111 Bailey Avenue near J Street.

According to documents from the City of Needles, on April 27, 2021, City Council entered into both a Services Agreement and a Lease Agreement with the Chamber of Commerce as the preferred vendor for the Visitor Center in the Historic El Garces Train Depot. The Chamber agreed to complete the tenant improvements for the Visitor Center and the Chamber Offices to open full time regular business on or before December 31, 2021.

At the October 26, 2021, City Council meeting, the Chamber of Commerce provided the City Manager with a request to extend the December 31, 2021, deadline to August 1, 2022, for the Services and Lease Agreement.

The following outlines the terms of the agreement for the Professional Services Agreement:

  • The Chamber will occupy 634 square feet of the 1,217 square feet to operate the Needles Visitor Center.
  • The Chamber will provide quarterly report to the City on the contacts with visitors (foot traffic at the VC, email count, phone call count, tours given, events scheduled in the El Garces).
  • The Agreement will remain in effect for a period of five years and shall be subject to mutually agreeable options to extend for three (3) year periods.
  • The Chamber will be compensated a fixed sum of $2,000 per month or $24,000 annually as Chamber’s sole and only compensation under the Agreement.
  • The City or Chamber may terminate this Agreement by giving written notice.

The following outlines the terms of the Lease Agreement for the Chamber in the El Garces:

  • The Chamber will lease 583 square feet of the 1,217 square feet space for the Needles Chamber of Commerce Offices.
  • The Agreement will remain in effect for a period of five years and shall be subject to mutually agreeable options to extend for three (3) year periods.
  • The Chamber will lease the 583 square feet for $0.61 cents per square foot or $355.63 per month for the area of the premises operated as the Needles Chamber of Commerce. Rent in the amount of $0.61 cents per square foot (634) for the City of Needles Visitor Center or $386.74 per month shall be waived by the City provided the Chamber is providing services under the Services Agreement.
  • The payment of utilities in the operation of the Needles Chamber of Commerce and the Needles Visitor Center shall be the responsibility of the Chamber. • Prior to entering the lease, the Chamber will obtain a building permit and commence construction within 30 days from the Effective Date of the agreement and be completed 90 days thereafter.

The Chamber provides an explanation of the delays that they have encountered in their letter received on October 26,2021. The Building permit was issued for this project in 2019. When the Chamber was first selected as the vendor, they informed the Council that they were “shovel ready” to immediately start construction. They presented proof of funds to pay for the project. They also provided a list of volunteer subcontractors which led the Council to choose them to build and operate the Visitor Center. Some volunteer subcontractors have since chosen to be unavailable. The City has not been provided an overall project plan for achieving the completion of the project. While the Chamber has a volunteer general contractor to construct the facility, there does not appear to be sufficient project management skills or expertise engaged for this effort. Any consideration of remaining with this vendor must be accompanied by proof of qualifications to manage a project of this scale.

When the Visitor Center in the El Garces was first envisioned, there were two disconnected organizations operating to serve visitors. That situation remains. The Needles Tourism and Visitor Center group recently submitted a status report on their efforts.

On January 18, 2022 the Needles Chamber provided a construction schedule for the Chamber of Commerce Tenant Improvements at the El Garces.

*** The proposed First Amendment to the Lease Agreement includes the following amendments: ***

  • 1: Section 11 of the Lease is amended in its entirety to read as follows:

“11. Lessee’s Work Prior to entering into this Lease, Lessee has obtained a building permit for Lessee’s Improvements to the Visitor’s Center and the Chamber of Commerce offices and performed certain work as provided in the schedule attached hereto as Schedule “1”. Lessee has commenced construction of the alterations and improvements contained in Lessee’s plans no as provided in Schedule “1” and the original Exhibit “A” to the Lease Agreement (which Exhibit “A” shall remain in full force and effect (“Lessee’s Work”), and Lessee will perform in full, at its sole cost and expense, in a lien free and good and workmanlike manner subject to a certificate of occupancy no later than July 11, 2022 (the “Commencement Date”). Lessee will pay all bills for labor and materials for the construction of Lessee’s Work. Upon completion of Lessee’s Work Lessee will provide Lessor with proof of payment and unconditional lien waivers from Lessee’s general contractor, subcontractors and material suppliers. Notwithstanding anything to the contrary in this Agreement or in Lessee’s Proposal related to this Lease and incorporated by reference in the Services Agreement, Lessor shall have no obligation to pay for any of Lessee’s Work or any other amount related to the improvement of the Premises or the operation and maintenance of the Visitor’s Center. Lessor shall not be responsible to make any improvements to the Premises.”

  • 2: Section 21 is stricken and replace with the following:

“21. Time of the Essence. Notwithstanding anything to contrary contained herein, time is of the essence in regards to this Agreement and each and every provision and term and section of this Agreement as amended. Under no circumstances will any extension of the timeframes in Section 11 be allowed or permitted in spite of any impracticability, frustration of purpose, force majeure or other legal theory allowing for the extension or delay of a party’s contractual obligations.”

All other terms and provisions of the Lease shall remain in full force and effect as provided therein.

The Chamber indicates on their construction schedule the Certificate of Occupancy will be no later than July 11, 2022.

As for the fiscal impact, the City of Needles said in the documents tenant improvements are to be completed for the Visitor Center no later than July 22, 2022 (the Commencement Date). The City will receive $4,267.56 in rental income from the Needles Chamber of Commerce office. Additionally, once the Commencement Date is reached the Services Agreement will go into effect which totals $24,000 for the management of the Needles Visitor Center to be paid out of the General Fund and.

The recommended action to members of the Needles City Council is for the City Council determine to either:

  • Option 1: Declare the contract and lease in default and request that the Council Visitor Center Committee to reassess the project and seek other options.
  • Option 2: Extend the Lease Agreement with the Amendments.

*** Agenda Packet for Agenda Item #2 (Unless otherwise noted, all downloadable agenda packets that are posted here are in a PDF file format so please make sure to have a PDF file reader or viewer): ***

cc-02-012522-Chamber Visitor Center

The public may attend the meeting but masks are encourage and designated seating will be available.

The public can also attend via Microsoft Teams and May submit any comments in writing prior to noon (12:00 p.m. PT) on the day of the meeting by emailing:

The public can join the live Microsoft Teams meeting by please logging into the City of Needles website at: to access the agenda and click the link.

If asked, enter the following: Meeting ID: 894 034 814# OR listen in and participate by calling Teams: 1-323-488-2227 – Meeting ID: 894 034 814# The meetings are being recorded.

*** The regular meeting of the Needles City Council and Needles Public Utility Authority will be broadcast live at ZachNews on Facebook: ***

For more information, please contact Dale Jones, City Clerk at the City of Needles at: 1 (760) 326-2113.


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