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HomeMy WebLinkAbout1985-03-05; City Council; Resolution 79241 2 3 4 5 6 7 8 9 10 11 12 12 14 15 1E 17 1E 1s 2c 21 22 2: 23 25 2E 27 2E RESOLUTION NO. 7924 A RESOLUTION OF THE CITY COUNCIL OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING A LEASE FOR OFFICE SPACE AT 2965 ROOSEVELT STREET AND APPROPRIATING FUNDS. WHEREAS, the City requires office space to house the Redevelopment and Housing Departments, and WHEREAS, the City desires to lease space at 2965 Roosevelt Street until March 31, 1988, NOW , of the City 1. 2. 3. 4. THEREFORE, BE IT HEREBY RESOLVED by the City Council of Carlsbad as follows: That the above recitations are true and correct. That the office space lease attached hereto as Exhibit "A" is hereby approved. That the Mayor is hereby authorized and directed to sigr said lease on behalf of the City. That the Finance Director is hereby authorized to appropriate contingency funds of $6,000 for the 1984-85 budget year to cover lease payments. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council'of the City of Carlsbad, California, held on the 5th day of March, 1985, by the following vote, to wit: AYES : Council Pkrrikrs Casler , Lewis I Kulchh, Chick and Pettine NOES: None ABSENT: None ATTEST: k %!i/?,&, /' (?L+&?+ MARY H.//CASLER, Mayor %@EN R. EJZ, Deputy city Cl&k 1, AMERICAN ASSOCIATION ,19 85 ,ismadebyand February 22 1. Pa- This Lsase. dated. for reference pur betwwn CARLSBAD EQUITY PRER??ES. A General ParnershiD (herem called "Leuoz') (herein called "LesMa"). 2. Pnmbrr Lepror hereby leases to Lessee and Lessee leases from LBSSOr for the term. at the rental, and upon all of the conditions set forth and CITY OF CARLSBAD CALI FORNIA herein, that certain real property situated in the County of sa n Di e a 0 State of California commonly known as 2965 Roosevelt Street. Sui e arlsbad. CA 92008 ' t 11 I1 and deacnbsd as aoDroximatelv 2.000 sauare feet of imoroved office soace. Said real property including the land and all improvements therein. is herein called "the Premises". thirty six (36) months 3. Tnm. commencingonAprl1 1, 1985 and ending on March 31, 1988 3.1 Tnm. The term-of this Lease shall be for unless sooner terhinated pursuant to any provision hereof. 3.2 My InPoswssion. Notwithstanding said commencement date, If for any reason Lessor cannot deliver possession of the Premises to Lessee on said date. Lessor shall not be subpct to any liability therefor, nor shall such failure affect the validity of this Lease or the obligations of Lessee hereunder or extend the term hereof. but in such case, Lesseeshall not be obligated to pay rent until possession of the Premises istendered to Lessee; provided. however, that if Le- shall not have delivered pos8ession of the Premises within sixty (60) days from said commencement date, Lessee may. at Lessee's option, by notlce in writlng to Lassorwithin ten (10) days thereafter. cancel thisLease, in which went thepartiesshall be discharged from all obligations hereunder; provided further, however. that if such written notice of Lessee is not received by LBSJOr within said ten (10) day period, Lessee's right to cancel this Lease hereunder shall terminate and be of no further force or effect. 3.3 Early Pocwrrlon. If Lessee occupies the Premises prior tosaid commencement date, such occupancy shall be subject to all provisions hereof. suchoccupancyshall notadvancetheterminationdate. andlesseeshall pay rentforsuch period attheinitial monthlyratessetforthbelow. 4. Rmt Lessee shall pay to Lessor as rent for the Premises. monthly payments or t . in advance. on the - d of each month of the term hereof. Leuee shall pa Leswr upon the execution hereof 5 * ' Oo0 ' 2 000 -00 as rent for ?he first month, April 1, 1485 ~ ~ ~ ~ ~ - - Rent for any period during the term hereof which is for less than one month shall be a pro rata portion of the monthly installment. Rent shall be payablein lawful money of thaUnitedStatestoLessorat theaddressstated hereinortosuchotherpersonsoratsuchotherplacesasL~rmay designate in writing. provision of this thepayment of a 6. use. 6.1 Ur. The Premises shall ba used and occupied only for Gene ra 1 0 f i c e s or any other use which is reasonably comparable and for no other purpose. 6.2 Compllanw with Law. (a) LessorwarrantstoLesseethatthePremises. initsstateexistingonthedatethat theLeasetermcommences. butwithoutregardtothe use forwhich Lessee will use the Premises, does not violate any covenants or restrictions of record, or any applicable building code. regulation or ozjinance in effect on such Lease term commencement date. In the event it is determined that this warranty has been violated, then it shall be the obligation of the Lessor, after written notice from Lessee. to promptly, at Lessor's sole cost and expense, rectify any such violalion. In the event Lessee does not give to Lessor written notice of the violation of this warranty within six months from the date that the Lease term commences, the correction of sameshall betheobligation OftheLesseeat Lessee'ssolecost. The warrantycontainedin thisparagraph6.2 (a) shall beof noforceor effect if, priorto thedateofthisLease. LesseewastheowneroroccupantofthePremises. and. insuchevent, Lesseeshallcorrect any suchviolation at Lessee's sole cost. (b) Except as provided in paragraph 6.2(a). Lesseashall. at Lessee's expense, comply promptly with all applicable statutes, ordinances, rules, regulations, orders. covenantsand restrictionsof record, and requirements in effect during the term or any part of theterm hereof, regulating theuse by Lesseeof thePremises.Lesseeshall not usenorpermit theuseof the Premisesin any mannerthat will tend tocreate wasteoranuisance or, if there shall be more than one tenant in the building containing the Premises, shall tend to disturb such other tenents. (a) Lessor shall deliver the Premises to Lessee clean and frw.of debris on Lease commencement date (unless Lessee is already in possesttion) and Lessorfurtherwarrantsto Lessee that thepfumbing. lighting. airconditioning. heating. andloading doors in thePremisesShal1 be in goodopemtin condition on theLeeseeommencement date. In theeventthat it isdetermined that this warranty has been violated, then it shall be theobligationoftessor. afterreceiptofwrittennoticetromL-satlngforth WithspeCificity thenatureoftheviolation. topromptly. atlessor's sole cost. rectify such violation. Lessee's failure to give such written notice to Lessor within,thirty (30) days after the Lease commencement date shall cause the conclusive presumption that Lessor haa complied with all of Lessor's obligations hereunder. The warranty contained in this paragreph 6.3(a) shall be 01 no force or effect if prior 16 the date of this Lease. Lessee was the owner or occupant of the Premiser. (b) 'Excepi aa otherwise provided in this Leas& L-ee hereby accepts the Premises in their condition existing a¶ of the Lease commencement date or the date that L- takes Fn of tho Premises, whichever is eavier. subject to all applicable zoning, municipal. county and state laws. ordinance8 and regulations governing and regulating the use of the Premises. and any covenants or restrictions of record. andacceptsthisLeasesubiecttheretoandtoall ma~endisclosed thereby and by any exhibitsattached hereto. Lessee acknowledges that neither Lessor norlessor'sagent ha?,madeanyr~r~ntationorwarrantyaa tothepresent orfuturesuitabilitYofthePremisesfortheconductof LBssBB's business. 6.3 Con&bn of PwnIsoa - 1. ~~,R~Uad~ 7.1 LawVsO#1o.tlw Subject totheprovisionsofParagl.p~6.7.2. andQandexceptfordamagecaused byany negligentorintentional act oromis8ion of Lessee, Lessee's agents, employw6, or invitees in which event Lessee shall repair the damage. Lessor, at Lessor's nxpensa. shall keep in good order, condition and repair the foundatiins. exttor walls and the exterior roof of the Premises. Leuor shall not. however. be obligatadtopaintsuch exterior. norshall L~~~~uiredtomafntaintheinteriorsurfaceof exteriorwBlls. wind0.w. doorsOrpIategIass. Leuor shall havenoobligation tomakempainundarthisParagraph7.1 untilareasonabletimeafter receipt of writtennoticaof tht,nWdforsuchrepairs. Lessee expressly waives the benefits of any statute now or hereafter in effect which would otherwise afford Lessee the right to maka repairs at Leaaor'q expcwe or to.tenninst. Mia Leano becaw of Les8ofs failure to keep the Premises in good order. condition and repur. (a) Subject to the provisions of Paragraph8 6,7.1 and 9. Lessee, at Lessee's expense. shall kea0 in good order. condition and repair the Premisesand every partthereof (whetheror not thedamag+portionofthePremisesorthe meansof repairing thesamearerePsonablyorreadily accessable to Lessee) including. without limiting thegmoraiityof the foregoing. all plumbing. heating. air conditioning, (L-shall procure and 7.2 Lda O#ig.clon* Ih .-- msintain. at La$, J the Prrmiaa. fixtures Pramian. Og. ekttncll and lighting f8ctlrtru and #uipmmt wi!hin jws. doan. plate glus. and skytights. loca1.d mthin the ona under this Paragraph 7 2 or under any other prr8grSDh of thts Lease. Leaaor may at rittennoticetoLesaee (exceptintheureolemergency. in whiChW~r)OnotiCeshall d put the Pnmiwa in good order. condition and repair. and the cost thorwt togahof law shall b. due and payable rddrtlonal rent to Lwsor together with LU’¶ next mination. Lessee shall surrender the Premises to Leuor in the aame condition debris Lessee ahall repair any damage to the Premiws ocusionod by the ent Notwithstanding anything lo the contrary otherwise stated in this Lease. ng fixtures. space heaters air conditioning. prumbing and (a) Lessen shal! not. without Lessor’s prior wrilten consent makeany alterations. improvements. additions. or Utility Installations in. on or about the Pramires. except for ponstructural altera~iona not exceeding $2.500 in cumulative costs during the term 01 this Lema. In any went, whethw or not in excans of $2.500 in cumulative coat, Lessee shall make no change or alteration te the exterior of the Premires nor the Oxterior of Premira. and a11 land 8.- *“os and 311 SidWalks and parkways adiaant to the (c) On the fasf day of the term 88 r.ceiv.d. ordiniry weir and tear e installation of removal of its trade fixtu said permit 10 a prompt artd expeditious tested lien claim or demand indemnifying Levoragainst In addition. Lcuor may require Lessee to pay Lesofs E - aeo shall indemnify and hold harmlola Lesaor from and against any and all Claiffla arising from Leuee’s uw of the Premima. or from the conduct of Lesaee’s business or from any activity. worlc of things done. pe~miROd or sUff0r.d by Lessee in or about the Premiaoaor drawhereand shall tunherindemnify and hold harml.sr Lessorfromand againatany andall claimseristngfromany breachordefault of thiaLem. oruising fromanynegligenooftheLsws. or mey’afws. upenarsand Iiabilitias incurrod in thedefsnceol or procwding be brought againat Lessor by rem of any such lUtiSf8CtOry to Leuor. Lessee. aa a material part of rho in. upon or about tha Premiaa arising lrom any cause s, business or any lass of tees. customen. or any . agenta or contrrcion. whethw the wid are a pan. OI from .ulbb to L-. otany obligation nts contractors -a- Inl(w: - -, . '' 9. Du.ug.orD..bwtkrr the P"iaeS to the extent that the cost of repair is less than mean damage of destruction to the building of whid, the Promha am a prt to t(M extent that the cost of repaic is less than 50% o the hir marka valw of such building 8s a whole immediately prior to such damage or destruction. ' : Damage" shall herein mean damage ordest the Premises immediately Pnor to such "Premises Building Partial Damar" shall herein (b) "Premises Total Destruction" shall hemin mean damage or destruction to the PrdmisSf to the extent that the cost of repair is 50% or moreofthefair market valwolthePremisesimmediateiypnortosuchdamageOrdestruction. "Premises Building Tot81 Destruction"shal1 heretn mean damage or destruction to the building of which the Premises are a Part to the extent that the cast of repair is 50% or more of the fair market value of such building as a whole immediately pnor to wch damage or destruction. (c) "Insured Loss" shall hemin mean damage or destruction which Was Caused by an event required to be covered by the insurance desdribed in paragraph 8. 9.2 P.M.IDmugo-llmundLws. Subjecttotheprovisionsofparagraphs9.4.9.5and9.6. if atanytimeduringthetermo!thisLeasethere is damage which is an Insured Loss and whtch falls into the classification of Premises Partial Damage or Premises Building Partial Damage. then Lamor shall, at ~essor's sole cost. repair such damage. but not Lessee's fixtures. equipment or tenant improvements. as smn as reasonably porsible and this hue shall continue in tu11 force and eHect. 9.3 Pm Damage - Unlnwred Loss Subject to the provisions of Paragraphs 9.4.9.5 and 9.6, if at any time during the term of this Leare them is damage which is not an Insured Loss and which falls within the ClaSSificatiOn of Premises Partial Damage or Premises Building Partial Damage. unless caused by a negligent or willful act of Lessee (in which event Lessee shall make the repairs at Lessee's expense). Lessor may at Lesaots option either (I) repair such damage as soon as reasonably possible at Lessor's expense. in which event tho$ Lease shall Continue in full forceandeHect.or (ii) givewrittennotice to Lessee withinthirty (30) daysafterthedateoltheoccurrenceof suchdamageol Lessots intention to canceland terminatethisLease.asofthedateof theoccurrenceofsuchdamage. In theevent Lerrorelectstogivesuch noticeof Lessofsintention tocanceland terminatethisLease. Lesseeshall havetherightwithin ten(t0)daysafterthereceiptofsuchnoticetogivewriften noticetoLessorof Lessee'sintention torepairsuchdamageat Lessee'sexpense. without reimbursement from Lessor. in whichevent thisLeaseshallcontinuein full force and effect, and Lessee shall proceed to make such repairs as soon as reasonably possible. If Lessee does not give such notice within such 1 Way penod this Lease shall be cancelled and terminated as of the date of the occurrenre of such damage. 9.4 TOW Dosbruc(Im. If at any time during the term of this Lease mere is damage. whether or not an Insured Loss, (including destruction required by any authonzed public authorily). which lalls into the classification of Premises Total Deslruction or Premises Building Total Destruction. this Lease shall automatically terminate as of the date of such total destruction. 9.5 D"ageN.rEndoiT.mr (a) If at any timeduring the last six monthsof theterm of thisLensethere isdamage. whetheror not an Insured Loss. which falls within the classification of Premises Partial Oemage, Leuor may at Lessor's option cancel and terminate this Lease as of the date of occurrence of such damage by giving written notice to Lessee 01 Lessor's election to do 30 within 30 days after the date of occurrence of such damage. (b) Notwithstanding paragraphgS(a). intheeventthatLesse hasanoption toextendor renewthisLeaso,and thetime within whichsaid option may be exercised has not yet expired. Leasee shall exmm such option. if it is to be exercised at all. no later than 20 daya after the occurrence of an Insured Loss falling within the classificI)tion of Premises Partial Damage during the last six months of the term of this Lease. If Lesseedu1yexercee.s such optionduring said20dayperiod. Lessorshall. at Lessor'sexpense. repairsuchdamageassoonas reasonablypossible and this Lease shall continue in full force and effect. If Leasee fails to exercise such option during said 20 day panod. tkn Lessor may at Lessor's option terminate and cancel this Lease as of the expiration of said 20 day pcKiod by gwing written notice to Lessee of Les=ots election to do 30 within 10 days after the expiration of said 20 day period. notwithstanding any term or provision in the gam of option to the contrary. (a) In the event of damage described in paragraphs 9.2 or 9.3. and Lessor or Lessee repairs or restores the Premise pursuant to the provisions of this Paragraph 9. the rent payablehereunder forthe period during which such damage, repair or restoration continuesshall beabate6 in proportion to the degree to which Lessee's use of the Premises is impcured. Except for abatement of rent, if any. Lessee shall have no claim against Lessor for any damage suffered by reason of any such damage. destruction, repair or restoration. (b) If Lessor shall be obligated to repair or restore the Premises under the provisions of this Paragraph 9 and shall not commence such repair or restoration within 90 days after such obligations shall accrue, Lessee may at Lessee's option cancel and terminate this Lease by giving Lessor written notica of Lessee's election to do so at any time prior to the commencement of such repair or restoration. In sach went this Leone shall terminate as of the date of such notice. 9.7 Tonnlrutkn -Adr.nc. Pawnants. Uwn termination of this Lease oursuant to this Paraaraoh 9. an eouitable adiustment shall bemade 9 6 Abatement of Rent L-'a R.nwdia. concerning advance rent and any ahance payments made by Lessee to L&r. Lessor shall, in zddhion. ret& to L- so much of Leuae'i secunty deposit as has not theretofore been applied by Leswr. 9.6 Wahr. LeSSOr and Lessee waive the provisions of any statutes which relate to termination of leases when leased property is destroyed and agree that such event shall be govemed by the terms of this Lease. 10. ReaIPmpe~lyTua 10.1 Payment of Tu Increw. Lessor shall pay,the real property tax, as defined in paragraph 10.3, applicable to the Premises; provided, however. that Lessee shall pa i addit to rent, the amount, if any. by which real property taxes applicable to the Premises increase over the fiscal real estate tax year 19 86 19 % . Such payment shall be made by Lessee within thirty (30) days after receipt of Lessor's written statement setting forth the amount of such increase and thecomputation thereof. If the term of this Leaseshall not expireconcurrentlyrith the expiration of the tax fiscal year. LBSSBB'S liability for increased taxes for the last partial lease year shall be prorated on an annual basis. 10.2 ,Additl~~llmp~tr Notwithstanding paragraph 10.1 ?ereof. Lesseeshall pay toLessor upon demandtherefortheentiretyof any increase in real property tax if assessed solely by reason Of additional improvements placed upon the Premises by Lessee or at Lessee's request. 10.3 Deflnltion of 'Real Proparty Tax". As used herein, the term "real property tax" shall include any form of real estate tax or assessment. general, special, ordinary or extraordinary, and any license fee. commercial rental tax, improvement bond or bonds, levy or tax (other than inheritance, personal income or estafe taxes) imposed on the Premises by any authority having the direct or indirect power to tax. including any city, state or federal government, or any schml. agricultural, sanitary. fire. street, drainage or other improvement district thereof, as against any legal orequitableinterestof Lessor in thepremisesorin thereal propertyofwhich thepremisesareapart. asagainstLessor'srightt0rent orother income therefrom. and as against Lessor's business of leasing the Premises. The term "real properly tax" shall also include any tax. fee. levy, assessment orcharge(i) in substitutionof. partially ortotally. any tax.fee. levy. assessmentorcharge hereinaboveincluded within thedefinitionof "real property tax." or (ii) the nature of which was hereinbefore included within the definition of "real property tax," or (iii) which is imposed for a service or right not charged prior to June 1.1978. or, if previously charged. has been increased since June 1.1978. or (iv) which is imposed as a result of a transfer. either partial ur total. of Lessoh interest in the Premises or which is added to a tax of charge hereinbefore included within the definition of real property tax by reason of vch transfer, or (v) which is imposed by reason of this transaction. any modifications or changes hereto, or any transfers hereof. 10.4 Jolnt A..eumcnt If the Premises are not separately assessed. Lessee's liability shall be an equitable proportion of the real property taxes for all of the land and improvements included within the tax parcel assessed. such proportion to be determined by Lessor from the respective valuations assigned in the ass~ssor's work sheets or such other information as may be reasonablv available. Lessor's reasonable determination thereof, in good faith, shall be conclusive. (a) Lessee shall pay prior to delinquency all taxes asmssed against and levied upon trade fixtures, furnishings. equipment and all other personal property of Lesseecontaindinthepremisasorelservhare. Whenpossible. Lesseeshallcausesaid tradefixtures,fumishings,equipment (b) If any of Lessee'asaid penonal property shall beaswssed with Lessor's real property, Lesseeshall pay Lessorthetaxcsattributab*to' Lessee within 10 days eftor receipt of a written statement setting forth the taxes applicable to Lessee's property. 11. UtlHIiu Lessee shall pay for all--. heat, light, power. telephone and other utilities and services supplied to the PremisBs. togethe A- with any tuca thereon. UsnyurD~~~oUtplrst.~Yput.nQlo~,~~rhpPpay a~~nabloproportbPt0~tB~hy L-4aWdaqesjeint4y- withothergrernw6 12 Anb"t.ndsu~ 12.1 L~sComantR~~ Lessees~allnotvoluntarilyof dyoperationoflaw assign. tr.nsfer.mortgage,sublet.orothemisetransferor encumber ell or any part of Lessee's interest m Ws Lewe ;w &I the PremW without L?ssor's prior written consent, which Lbssor shall not unraasonablywithhold. Lessorshallreapondtolesrse'r mquestforeonwnt hereunder in a timelymannerandanyattempted assignment. transfer, 122 Loweo AWIIWo, Notwithatanding the proViSiWI0 of paragraph 12.1 hereof. Lessee may &ign or sublet the Praplisas. or any portion thereof, without L.essor's consent. to any wrpOntion eich controh, is controlled by or is under common control with Lessee. or to any corporatton rewlt!ng from the merger or conrolidation with LC4Sm ?to any penon 7 entity which ayuires all the asset3 of Lessee as a going concern of the business that Is being conductdon thePremise3. provided that raidassignee assumes. in full. theobligations of Lesseeunderthis Lease. Any such assignment shall not, inany way. dfoctorlimit thelhbifity ofLcases underthe terms of this Lease even if after such assignment or subletting the terms of this Lease are materially changed or altered without the consent of Lmea the consent of whom shall not be necessary. 12.3 NoRshseofLeuoe. Regardlessof L~scon~nowMatlngorassignment shallre1easeLesseeofL~'sobligationoralterthe primary liability of Leasee to pay the rant and to parform all other Obligations to be +OW by Lessee hereunder. The acceptance of rent by Lessorfromanyotherpersonshall not bedoemedtobeawaiverby Leuorof any provision hereof.Consenttooneassignment orsublettingshall not bodeamadconsent toacysutwquent iw@"tor8ubietti~ In the event of default,by any assignee of Le~9~0orany successor of Lasee, in theperformanceofany of thetormsheraof. L~m.ypr~di~ag~nrtL(#ssemthout thenecessityofexhaustingremediesagain?t said assianee. L~rmavconsenttosu~UBnl~n~tsorsuble~lna ofthis Leaseoramendmentsormodificationsto this Lease with assignees 10.5 P.Mn* Pmpwty Tua and all other personal prwriy to be asessed and billed separately from the real property of Lessor. ryL t - mortgage, encumbrance or subletting without Such comt shalt bo voM. end shall constitute a breach of this Lw. .. of Lk. without notifyingLea%e,or&yaucc&orofLeSseaand withoutobtainingitsortheirconsentthemtoandwchactionshallnot reAiwe Lessen of liability un&r tho Lease. 12.4 A~~r Fees. In thesvent L-shall assign orsublet the Premise3 or request thecwdnt of Lessortoany assignment or subletting or if L-shall mwst theconsent of Lessor for any act L6sw.proposm to dothen Lessee shall psy Leuots~nabfeattom~s feer incurred in connection with. wch attorneys faas not to exceed 3350.00 for each such request. GROSS *See ADDENDUM -3- - i r' 15. Dew ;e. 1 D..&. The occurrence of any one or more of the following met dl COMtiIUtO a material default and breach of this Lease by ny payment of rent or any other payment required to be made by ~essee hereunder. as and when due. to Lessee In the event that Lessor serves Lessee PayRentorQuit shaI1aIsoConstitutethenotice threndayaafterwriRen notice thereof fro olicable Unlawful Detainer statutes such nd thereafter diligently PrOSBCUteS such tion filed against Lessee. the same is dismissed within 60 hment. exacution or other judicial seizure of such seizureisnot discharged with 30 days cable law. such provision shall be of no force (e) The dwovery by Lessor that any financial statement given to Lessor by Lessee. any assigneeof LesMe. any subtenant of Lessee, any em. was materially false at any time thereafter, with or without notice or ve by reason of such default or breach ase this Leaseshall terminateand Lesseeshall overfrom Lesswall damages incurred by Premised, expenses of reletting. including miwm actually peid, theworth at the time balance of the term after the time of such award yavoided. that portion ofthe leasing commission rnot Lessee shall haveabandoned the ,including the right to recover the rent as it becomes due hereunder (c) Pursueany other remedy noworhereafteravailable toLessorunder thelawaorjudicml decisionsolthestate wherein the Premisasare located. Unpaid InStallmentSof rent and other unpaidmonetaryobligationsof Lesseeunderthetermsof this Leaseshall bear interest from thedate due at the maximum rate then allowable by law. or effect is Lease. amonthly advance inst penses on the Premises which and insurance premiums - 14. Condemnation. lfthe Premisesoranyportionthereofaretaken under thepowerofeminentdomain,orsold underthe threatoftheexerciseol savd power (all of which are herein called "condemnation"). this Lease shall terminate as to the part so taken as of the date the condemning authority takestitleorpossession. whicheverfirst occurs If morethan 10%ofthefloorareaofthebuildingonlhePremlses, ormorelhan25%Ot the land area of the Premises which is not occupied by any building, is taken by condemnation. L&ee may, at Lessee's Option, to be exercised in writingonlywithin ten (10) daysafterLessorshaN havegivenLesseewritten noticeofsuch takin (orin theabsenceof such notice, within ten (10) dayr an4r the condemning authority shall have taken possession) terminate this Lease as oythe date the condemning authority takes such possession If Lessee does not terminale this Lease in accordance wi n full force and effect as to the Pofilon of the Premises remaining, except that the rent shall be reduc-d in th ding taken beamtothetotal floorarea ich does not habe a building located of the building situated on the Premises. No reduction of rent shall occu, thereon. Any award for the taking of all or any part of the Premises under th n or any payment made under threat of the exercise of such power shall be the property of Lessor, whether such award s tion fordiminution invalue of the leasehold or forthe taking of the fee. or asseverancedamages. provided. however, that to any award for loss of or damage to Lessee's trade fixtures and removable personal property in the event that this Lease I n 01 suchcondemnation. Lessor shall to the extent of severance d received by Lessor in connection with such y damage to the Premises caused by such condemnation except tent that Lessee has been reimbursed therefor by thecondemning authority Lesseeshall pay any amount in excess uired to complete such repair. IS BmMsF08. @)-Ugpo_a_x~~tjon of this Lease by both p8rtiea. Lbuor shall pay to GRUB ' E I MM E I A Licensed real estate agreement between in this tranflction. 39.1 of this Lease. whch is granted to Lessee under y other or srlu entered into between the partla west, then as to any of sad transactions. Lessor shall pay said me of exxacutm of thrs \ 1lUii.k GROSS -4- -.3 17. L-8 ~lrbl#tr. The term ‘Lessor“ as used herein shall ”nly tho owner or ow” at the time in question of the fee titlo or a lessee’s interest in a ground iem of the Pr”, and exCW as expressly Provided in PUrgnph 15. in the event of any transfer of auch tile or interest Lessor herein named (and in ulb of any 8uubSequOnt transfers then the !IrantW) Shall be “OVed from and after the date of such transfer of ali liability as respects Lessor‘s obligations tthmafterto be Performed. PrOVi6ed thatany funds in the hands of Lessor or the then grantor at the time of such transfer in which L”ehasaninterest.shall be~l~OdtOtho~~~Theo~igationscontained inthihLemtob.pertomMd by Lesror shrill. subject’as aforeanid. be binding on Leuor‘s sucuswrs and assigns. only during their mapactive periods of ownership. 1L SwwaBlNly. TheimalidityofanyprwisionofthbLem~daenni~byacourtOfCOm~entjurisdiction, shall in nowayaffectthevalidity Of My Othw proviaion hersof. 1% IntarwtorbPast-duoObl~ Exceptasexpressly hereinprovided.anyemountduetoLersornot paidwhendueshallbearinterestatthe maximum nte then allowable by law from the date due. Payment of such intereat shall not excuse or cure any default by Leasee under this Lease. provided. however. that interest shall not be payableon latechugen incurred by Lwsee nor on any amounts upon which late charges are paid by LeMEE. 20. TkM ot LII.IK.. Time is of the cmenca 2l. Mdlthul RonL Any mon%tary obligations of Lasaw to L- under tho terms of this Lease shaii be deemed to be rent 22. 1- Of Pdor Ag”nW This Leano contains all agreements of the parties with respect to any matter mentioned herein. No prioragreementorunderstandin pertainin toanysuchmattershall beeffeclive.ThisLeasemaybemodifiedinwritingon!y,sig~by the parties in interest at the time of the mod$fication. &cept a3 othemiae stated in this Lease. Lessee hereby acknowiedges that neither the real estate broker listed in Pangmph 15hersofnoranycoopenti brokeronthistmnsrctlon M)rthe Lsasororanyemplo~oragen~ofanyofsaid persons hasmadeanyoralorwMtenwsrrimtiesorrepr~nta~nstoLessee~ativetothecondNionorusebyLesseeotsaidPremi~andL- acknowledges that Lessee auumesall responsibility regarding theOccupationalSafety Health Act, the legal useandadaptabilityof the Premises and thecomp#~nc~thersofwithallappiieablelawsandregulatiomindfectduringthotermofthisLeaseexcept asothemissspecifi~lystatsdin this Leam. 23. Notlerr Any noticerequiredorpennittedtobe ~nhereundsrsh.llbeinwritingandmaykgiven bypenonaldeliveryorbycartniedmail and if given,~~nallyorbymail.shallbedwmed~~cifm~g~~~dr~to~ortoL~orattheaddreasnoted~iowthesig~tureo~ the respective parties. asthecuemy be. Eitherpartymaybynoticstotheotherspecityadiff~taddretsfornoticepurposesex~tthat upon Lessee’s taking possession of the Premises. the Premises shall constitute L-’s addrwa for notice purposes. A copy of all notices required or.’ permitted to be given to Lessor hereundefrhall beconcunentiy transmitted tosuch party or parties at sucn addresses as Lessor may from time to time hereafter designate by notice to Lesaoe. 24. Walvm. Nowaiverby Lessororany provision hereofshallbedwmedawaiverqf anyotherprovi8ion hereoforof anysubsequentbreachby LessW of the tame or any other provision. Leasor‘sconsent to, or approval of any act, shall not bedwmed to renderunnecessnrytheobtsining of Lessor‘s consenrtoor tmrovalotanvsubs6auntactbvlea.¶8e. Theacce~tanwof rent hereunderbv Lsrrsor shall not bea waiver of .rw wewdina .. . breach by Lessesofanyprovisron hireof. otktlunthbfailur@ofLea8wiopay the particular mntsoaccepted,~rdleuOfL~a~k‘M)wl.dgi of such preceding breach at tho time of acceptancs of such rent. 25. R.tordlng. Either Lessor or Lassee shall. upon requaat of the other, execute. acknowledge and deliver to the other a “short hnn“ memorandum of this Lease for recording purpose& 26. Holdlng Ovw. If Lessfie, with Lessofs COMsnt. remain8 in won of the Premises or any part thereof after the expiration of the term hereof.suchoccupancyshal1 beatenancyfrommonthtomonthuponallthoprovisi~of thbLeasepertaining totheobligatinsof L~MEE. butall options and rights of tint refusal. if any. qrnnted Undei the terms of thb Leu0 shall be deemed terminated and be of no fuc*lerdfect during 3.ib month to month tenancy. 27. CumulathRmwdkc NoremedyorWion hereundefsh.llbe~~lusivebutahall. whemverpossible. becumulativewithallothw remedies at law or in equity. 28. CorHIanta and Condltlonr Each provision of this Leano perfonmbhm by Lesaeo shall be deemed both a covenant and a condjtion. 29. Binding Effect Chokoof Law. Subject toany provisions hersof restrictingauignment orsubletting by Lesseeand subject to the provisions of Paragraph 17. this Leaseshall bindthe parties. theirperSOnalr~tati~.succeMorsandassigns. ThisLeaseshali begovem~dbythelam of the State wherein the Premises are located. 30. Subordlnatlon. (a) This Lease, at Lessor‘s option, shall be subordinate to any ground lease, mortgage. deed of trust, or any other hypothecation or security now or hereafter placed upon the real propmy of which the Premises are a part and to any and all advances made on the oecunty thereof and to all renewals, modifications. consolidations, replacements and extensions thereof. Notwithstanding such subordination, Lessee‘s right to quiet possession of thePremisesshall not bedisturbed ifLes?eeisnotin defaultandso IongasLesseeshailPay the rent andobserveand perform all of the provisions of this Lease. unless this Lease is otherwise terminated pursuant to its terms. If any mortgagee. trustee or ground lessor shall elect to havethis Lease priortothelienof Itsmortgage.deedoftrustorgrwnd lease. andshallgivewrittennoticethereof toLesseg, thisLesseshali bedeemedpriortosuch mortgage.d_eedoftnut.orgroundIttase. whetherthisLeaseisdatedpriororsubsequent to thedateof saidmortgage,deed of trust or ground lease or the date of recording thereof. (b) Lesseeagreestoexecuteanydocumentsrequiredtoeffectuateanattornment, asubordination orto makethis Lease priorfothe lien of any mortgage, deedof trustorground lease,asthecasemay be.Lessee‘afailuretoexecutesuch documentswithin lodaysafterwrittendemand shall constitutea material default by L- hereunder. or. at Lessor‘soption. L~rshall executesuch documentson behalf of LesseeasLessea’s attorney-in-fact. Lessee does hereby make, constitute and irrevocably appoint Lessor as Lessee’s attorney-in-fact and in Lessee’s name. piace and stead, to execute such documents in accordance with this paragraph 30(b). 31. Attorney‘s Fns. If either party or the broker named herein brings an action to enforce the terms hereof or deciare rights hereunder, the prevailing party in any such action, on trial or appeal. shall be entitled to his reasonable attorney’s fees to be paid by the losing party as fixed by the court. The provisions of this paragraph shall inure to the benefit of the broker named herein wto seeks to enforce a right hereunder. 32. LWs Aecns. Lessor and Lessot‘s agents shall have tha right to enter the Premises at reasonable times for the purpose of inspecting the same, showirtg the same to prospective purchasers. ienden. or lessee4 and making such alterations, repairs, improvements or additions to the Premises or to the building of which thy are a part as Lessor may deem neceslary or desirable. Lessor may at any time place on or about the Premises any ordinary “For Sale” signs and L- may at any time during the last 120 days of the term hereof place on or about the Premises any ordinary “For Lease” signs, ell without rebate of rent or iiabilily to Leanee. 55 Auctknr L- shall not conduct, nor permit to be conducted. either voluntarily or involuntarily. any auction upon the Prom- without first having obtained Lessdr prior written consent,NOWiths(andlng anything to the contrary in this Lease. Lessor shall not be obl@Ued to exorciao any standard of “ubimtm in determinmg whether to grmliuch co”t 34. Sigma L”e shall not place any sign upon tho Premiws without Ws prior written consent except that Lersao shall have tho mt. wlthwt the prior permiasion Of LesMr to pkC0 dinq and USUd for IUM or MbW SigIlS theqn. 3& hrgu. Thevoluntrryor~w~olthit~b~OIamutual~l.tionthereof.or atmination by Lessor, shallnotworka merger, and shall. at the option of Lessor, terminate dl or My uirting aubtenanciea or my, at the optlon of Leanor. operata aa M .arign“t to Leasor of my or all of such 38, - Except for pubgraph 33 hemof, wl”w inthbLif88th.conwmtof one party b reqliired to in act of theotherparW5uch-t rm not be unreasonably wmw. 37. Qurrmtor. In the event that them b a gwnntor of !hi8 Loam said gmntor shall have the tame obligations as L~MEE under thk Len&. 31. QuMW Upon Lesua paying ttu rent for Me Pmmkes and obmving and performing all of the covenants. conditlom Md provisionam Lessee’s *to beob”d ann6 p”d hamunder, Laweahall hne quiet poteession of thePremi?% for theentire term )Mlcrot subj.cttoalloftheprowdwof thb~Th.individ~soxocutingth~l.~on bahalfof Leaaorrepres?nt8ndwarranttoL~thattheJYare fully authorized and legally capable of oxeating this Lene on b.wt of L- and Hut such uecution r binding upon all Wes holding an ownemhip intmt in tho =op(lau , ’ - Of L.rww OI the right of first offar to pUrcham0th.r pmprty of Lesoor. 39.2 option knanJ. Gch Option gdto Lwwm inthk Le” 8fepmonal to L- and may not lm oxercbed or be msigmd volunhrlly or involuntarily, by or to my p.nonor.ntilyomth w.Pr0viQ.a howww. theoption maybeex.niSOd by or wigndto My GROSS -8- IItHUE .- Ssee are not assignable separate and apart from thrs renew this Lease d% later option cannot be exercised so exercised. unless the Drior option to ex1 sed shall not be extended or enlarged by reason of Lessee's inability to reunder does not iriclude the cost of guard service or e Lesseeassumes all responsibility for the protection 42 E.um.nt8. Lessor reserves to Itself theright. lrom timeto time. togrant such easements rights and dedications that Lessor deems necessary or desirable, and to cause the recordation 01 Parcel Maps and restrictions, so long as such easements. nghts dedications. Maps and reStriCtlOnS do not unreasonably interfere with the use of the Premises by Lessee Lessee shall sign any of the alorementioned documents upon request of Lessor and failure to do so shall constitute a material breach of this Lease 43. PorformanwUndwProtert. lfat any timeadisputeshallariseastoanyamount orsumof moneytobe paid by oneparty totheother underthe provisions hereof. the party against whom the obligation to pay the money is asserted shall have the right to make payment under pr0t-t" and such payment shall not beregardedasa Muntarypayment. andthereshallsurvivetherighton thepartofsaidpartytoinstitute3~it fOrrecOVeWOf such sum If it shall beadjudged that there was no legal obligation on the part 01 said party to pay such sum or any part thereof. said party shall be entitled to recover Such sum or so much thereof as it was not legally required to pay under the provisions 01 this Lease 44. Authority. It Lessee is a corporation trust, or general or limited partnennip. each individual executing (his Lease on behalf of such entity representsandwarrantsthat heorsheisdulyaulhorized toexecuteanddeliverthisLeaseonbehalfofssidentltY ItLesseesacorporation, trustor partnership. Lessee shall. within thirty (30) days afler execution of this Lease deliver to Lessor endence of such authority SatlSfaCtOIY lo LeUOr W e = 5 5 - / part orinis Lease. / L flict between the printed provisions of this Lease and the typewrittenor handwritten prwlslons sh$ be COntrOlled by the i, 2 k r handwritten provisions dum Attached hereto is an addendum or addenda containing paragraphs through 51 Which COnStltUtes 2 a 5 3 - z - r m C - m z n - / .& m E / Y) - m OVlSlON CONTAINED HEREIN THE PARTIES HEREBY AGREE 2 THETERMSOFTHISL NABLEAND EFFECTUATETHE EE WITH RESPECT TO a UENCES OF THIS L ICE OF THEIR OI haw axrmtod Wa Lono at tho ~~DCO on tho d.1.r rp.cnl.d Imnndlrtdy .di.ant to thoir mpulh rlgnatunr c 0 CARLSBAO EQUITY PROPERTIES t BYTfmKASM KIB c For these forms write or call tho American Induttnal Real Estate A88OCmtKyI. 350 South Figwrw St. Suite n!5. LOs Angel-. CA Form 90071 lOSg 780 7 wc. ct (213) w74m ADDENDUM ADDENDUM TO LEASE dated February 22, 1985 between CARLSBAD EQUITY PROPERTIES, A General Partnership, LeSSOP, and THE CITY OF CARLSBAD, Lessee. 47. TENANT IMPROVEMENTS: Lessor to provide at Lessor's sole expense the following tenant i mprovemen ts : a) Lessor to remove at Lessee's option, one (1) interior b) Lessor will provide Lessee with a choice of carpet samples parti ti on to provide for a receptf on/wai ting room area. and at Lessor's cost, install Lessee's choice from same 1 n the demi sed preml ses. 48. COST OF LIVING ADJUSTMENT: The amount of Base Rent (and the corresponding Monthly Installments of Base Rent) payable hereunder shall be adjusted annually, commencing with the date twelve (121 months after the Commencement Date (the "Adjusted Date"). Such adjustments shall be for the purpose of reflecting the increase, if any, in the cost of living. Adjustments, ff any, shall be calculated based upon the United States Department of Labor, Bureau of Labor Statfstics Consumer Price Index for all Urban Co!sumers, San Diego Average. Subgroup "All Items" (1967=100) (the Index"). The Index published as of the third month prior to the Commencement Date shall be considered the "Base". In the event the San Dfego Index is not published in the third month prior to the commencement date then the second month prior to the commencement date shall be the "Base". On each Adjustment Date, the Base Rent sha?l be increased by a percentage equal to the percentage increase, if any, in the Index over the Base as of the third month (or second month if applicable) prior to each Adjustment Date ("Adjusted Base Rent"). Notwithstanding any subsequent decrease in the Index, the Adjusted Base Rent shall not be less than that rent paid after any preceding adjustment. When the Adjusted Base Rent payable as of each Adjustment Date is determined, Lessor shall give Lessee written notice of such adjusted Base Rent and the manner in which it is computed. If at any Adjustment Date the Index no longer exists in the form set forth above, Lessor may substitute any substantially equivalent official index published by the Bureau of Labor Statfstics or its successor. Lessor shall use any appropriate conversion factors to accomplish such s!bstf tution. The substi tute index shall then become the Index" hereunder. 49. OPTION TO EXTEND: If Lessee is not in default under the terms of thls lease, Lessee shall have the option to extend the term of this lease for one additional three (3) year period upon all the terms and conditions set forth in thls lease; except that, the monthly rent to be paid by Lessee to Lessor for each extended term shall be computed by 'adding to the minimum monthly rental for the immediately preceding period a sum obtafned by multiplying said minimum monthly rental by a factor equal to a percentage increase in the Consumer Price Index, (published by the United States Department of Labor, Bureau of Statistics, Consumer Price Indei for all Urban Consumers, San Dfego Average, Subgroup "All Items (1967 = 1001, equal to the percentage difference between the Index as last published prior to the commencement of the preceding term of this lease, and the Index last published immediately preceding the comaencement of each Luccessive term. _.._ Le all exercise this optlon by delivery of written notice to Le t less than 9 s prlor to expiration of the preceding term of this lease of lection to extend the term hereof. In no event shall the a1 for any additional period be i ncreased bel ow the an for the preceding term of this rental. ndex is no longer published essor may substitute any 1 years occupancy will require Lessee to onal month's rent. f of the termination clause a st be delfvered to the Lessor ise of the lease termination ornia 92008. - to Carlsbad Equity Properties, CITY OF CARLSBAD Date Date wco4:l j I- ./