HomeMy WebLinkAbout1998-11-03; City Council; Resolution 98-362. I! 0 0
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RESOLUTION NO. 98-362
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, AUTHORIZING THE LEASE OF
CANNON LAKE PARK
WHEREAS, the City of Carlsbad has vacant unimproved property identified as
Cannon Lake Park; and
WHEREAS, this property has not been designated for development within the
next 5 years; and
WHEREAS, Matteson Greenhouses has requested a lease with the City of
Carlsbad; and
WHEREAS, the negotiated lease rate of $350 per acre or $1,925.00 per year is
consistent with lease rates for other comparable leases for agricultural purposes; and,
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Carlsbad, California, the following:
1. That the above recitations are true and correct.
2. The negotiated lease is in the best interest of the City and is therefore
approved.
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3. That the Mayor is hereby authorized to execute “Lease Agreement
Matteson Greenhouses Cannon Lake Park” attached hereto as Exhibit 2, and upon
execution the City Clerk of the City of Carlsbad is hereby authorized and directed to
record the attached lease agreement in the Office of the San Diego County Recorder.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council
of the City of Carlsbad, California, held on the 3rd day of November , 1998, by the
following vote to wit:
AYES: Council Members Lewis, Finnila, Nygaard, Kulchin and Hall
NOES: None
ABSENT: None
,/ ”
ATTEST:
aPL ALETHA RAUTENKRANZ,. City Clerk)
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Recording Requested q y and
When Recorded Return to:
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City Clerk CITY OF CARLSBAD
1200 Carlsbad Village Drive Carlsbad, CA. 92008
Space above this line for Recorder’s Use
Assessor’s Parcel No. 210-090-17
LEASE AGREEMENT
MATTESON GREENHOUSES
CANNONLAKEPARKLAND
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CITY OF CARLSBAD
AGRICULTURAL LEASE
(Cannon Lake Park)
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LEASE OUTLINE
SECTION PARAGRAPH PAGE
Section 1 USES
1.01 Premises
1.02
1.03 Deletion Of Portion of Leased Premises Uses
1.04 Related Council Action
1.05 Quiet Possession
1.06 Easements and Reservations
Section 2 TERM
2.01 Commencement
2.02 Holdover
2.03
2.04
Quitclaim and Surrender of LESSEE'S Interest
Termination of Lease
Section 3 RENT 3.01
3.02
Time and Place of Payment
Rent
3.03 Delinquent Rent
3.04 Inspection of Records
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Section 4 ASSIGNMENT
4.01 Time is of the Essence; Provisions Binding
on Successors
4.02 Assignment and Subletting
4.03 Defaults and Remedies
4.04 Eminent Domain
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Section 5 INSURANCE RISKS/SECURITY
5.01 Indemnity 5.02 Insurance
5.03 Waste, Damage or Destruction
Section 6
6.01
6.02
6.03
6.04 6.05 6.06
6.07 6.08 6.09
IMPROVEMENTS/ALTERATIONS/REPAIRS
Acceptance of Premises
Entry and Inspection and Channel
Maintenance
Maintenance
Improvements/Alterations
Utilities
Liens
Taxes
Signs Ownership of Improvements and Personal
Property
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SECTION
Section 7
7.01
7.02
7.03 7.04 7.05 7.06
7.07
7.08
7.09
7.10
7.11
Section 8 8.01
Section 9 9.01
Section 10
PARAGRAPH
GENERAL PROVISIONS Notices
Compliance with Law
CITY approval Nondiscrimination Partial Invalidity Entire Understanding Agricultural Provisions
Agricultural Operations
Noxious Weeds, Pests
Control of Livestock
Employee Housing Prohibited
WARRANTY Warranty
SIGNATURES
Signature Page
EXHIBITS Exhibit A Exhibit B
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CITY OF CARLSBAD
THIS LEASE AGREEMENT is executed between THE CITY OF CARLSBAD, a
municipal corporation, hereinafter called "CITY", and MATTESON
GREENHOUSES ,hereinafter called "LESSEEf1.
SECTION 1: USES
1.01 Premises. CITY hereby leases to LESSEE and LESSEE leases from CITY all of that certain real property
situated in the City of Carlsbad, County of San
Diego, State of California, described in Exhibit
Ir2" attached hereto and by this reference made
part of this agreement. Said real property is hereinafter called the "premises" or "leased
premises1' .
1.02 Deletion of Portion of Leased Premises. In the
event any portion of the leased premises is not
used by LESSEE for its highest and best use, then CITY may, at CITY'S option, delete that portion of the leased premises not used by LESSEE from Section 1-01, Premises, hereof. Provided, however, Section 3, RENT, hereof, shall be adjusted downward by the City Manager on an equitable basis.
1.03 Uses. It is expressly agreed that the premises, consisting of approximately 5.5 acres, is leased to LESSEE solely and exclusively for the purposes of growing crops and for such other related or incidental purposes as may be first approved in writing by the City Manager and for no other
purpose whatsoever.
LESSEE covenants and agrees to use the premises for the above specified purposes and to diligently pursue said purposes throughout the term hereof.
Failure to continuously use the premises for said
purposes, or the use thereof for purposes not expressly authorized herein, shall be grounds for
termination by CITY.
1.04 Related Council Actions. By the granting of this lease, neither CITY nor the Council of CITY is obligating itself to any other governmental agent,
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board, commission, or agency with regard to any
other discretionary action relating to development
or operation of the premises. Discretionary
action includes, but is not limited to rezonings,
variances, environmental clearances or any other
governmental agency approvals which may be
required for the development and operation of the
leased premises.
1.05 Ouiet Possession. LESSEE, paying the rent and
performing the covenants and agreements herein,
shall at all times during the term peaceably and
quietly have, hold and enjoy the premises. If CITY for any reason cannot deliver possession of the premises to LESSEE at the commencement of the term, or if during the lease term LESSEE is
temporarily dispossessed through action or claim
of a title superior to CITY'S, then and in either
of such events, CITY shall not be liable to LESSEE
for any loss or damage resulting therefrom, but there shall be determined and stated in writing by
the City Manager of CITY a proportionate reduction
of the minimum or flat rate rent for the period or
periods during which LESSEE is prevented from
having the quiet possession of all or a portion of the premises.
1.06 Easements and Reservations.
a. CITY hereby reserves all rights, title and interest in any and all subsurface natural
gas, oil, minerals and water on or within the
premises.
b. CITY reserves the right to grant and use
easements or to establish and use rights-of-
way over, under, along and across the leased
premises for utilities, thoroughfares, or
access as it deems advisable for the public
good.
c. CITY has the right to enter the premises for
the purpose of making repairs to or
developing municipal resources and services.
However , CITY shall not unreasonably or
substantially interfere with LESSEE'S use of the
premises and will reimburse LESSEE for damages, if
any, to the improvements, including crops, located
on the leased premises resulting from CITY
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exercising the rights reserved in this section. Such reimbursement may include a reduction in the
rent proportionate to the amount of damage as
determined by CITY. CITY will pay the costs of
maintenance and repair of all CITY installations
made pursuant to these reserved rights.
SECTION 2 : TERM
2.01 Commencement. Regardless of the date of execution by the City, the term of this agreement shall be
three (3) years commencing on September 15, 1998
and terminating September 14, 2001.
2.02 Holdover. Any holding over by LESSEE after expiration or termination shall not be considered
as a renewal or extension of this lease. The occupancy of the premises after the expiration or termination of this agreement constitutes a month- to-month tenancy, and all other terms and
conditions of this agreement shall continue in full force and effect; provided, however, CITY shall be entitled to 120% of the monthly rent
during any hold over period and to terminate the
holdover tenancy at will.
2.03 Ouitclaim and Surrender of LESSEE'S Interest. At termination of this lease for any reason, LESSEE
shall execute, acknowledge and deliver to CITY,
within five (5) days after written CITY demand, a
valid and recordable quitclaim deed covering all
of the premises. The premises shall be delivered
free and clear of all liens and encumbrances, and
in a decent, safe and sanitary condition.
At the expiration or earlier termination of this
lease, LESSEE shall surrender the premises to CITY
free and clear of all liens and encumbrances,
except those liens and encumbrances which existed
on the date of execution hereof, and in a decent,
safe and sanitary condition. In the case of
termination of this lease by CITY prior to the end
of the specified lease term, any liens and
encumbrances must be approved in writing by the
City Manager.
If LESSEE fails or refuses to deliver the required deed, the CITY may prepare and record a notice reciting LESSEE'S failure to execute this lease provision and the notice will be conclusive
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evidence of the termination of this lease and all LESSEE'S rights to the premises.
2.04 Termination of Lease. Either party may terminate
this lease at any time upon 120 days notice to the
other. If at expiration of the 120 day time
period LESSEE still has crops growing, LESSEE shall be permitted to continue raising and tending
the crops and shall be permitted to harvest the
crops. The right to harvest the crops shall not
extend the term of the lease except that the
provisions of this lease, other than the extension
provision, shall apply. The right to raise, tend
and harvest shall apply only to crops planted
before notice to terminate has been given.
SECTION 3: RENT
3.01 Time and Place of Payment. Rent is due annually. Checks should be made payable to the City of Carlsbad and mailed or delivered to the Financial Management Director, 1200 Carlsbad Village Drive, Carlsbad, California 92008.
The place and time of payment may be changed at
any time by CITY upon thirty (30) days written
notice to LESSEE. Mailed rental payments shall be
deemed paid upon the date such payment is
postmarked by the postal authorities. If
postmarks are illegible, the payment shall be deemed paid upon actual receipt by the Financial Management Director. LESSEE assumes all risk of
loss and responsibility for late payment charges
if payments are made by mail.
3.02 Rent.
a. Rent Amount. The initial rent is $1925.
b. (1) Annual Adjustments. Commencing on the anniversary date of this lease agreement, in years 2 and 3 said annual rent shall increase as follows: Year 2 $1,985 dollars per year Year 3 $2,045 dollars per year c. Upon termination pursuant to Section 2.04 of this lease the annual rent may be pro-rated as required.
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3.03 Delincruent Rent. If LESSEE fails to pay the rent when due, LESSEE will pay in addition to the unpaid rents, five percent (5%) of the delinquent rent. If the rent is still unpaid at the end of
fifteen (15) days, LESSEE shall pay an additional
five percent (5%) [being a total of ten percent (lo%)] which is hereby mutually agreed by the
parties to be appropriate to compensate CITY for loss resulting from rental delinquency, including lost interest, opportunities, legal costs, and the cost of servicing the delinquent account.
In the event that the CITY audit, if applicable,
discloses that the rent for the audited period has
been underpaid in excess of five percent (5%) of the total required rent, then LESSEE shall pay CITY the cost of the audit plus ten percent (10%)
per year on the amount by which said rent was underpaid in addition to the unpaid rents as shown
to be due CITY as compensation to CITY for administrative costs and loss of interest as
previously described herein. LESSEE agrees to pay such amount and further agrees that the specific late charges represent a fair and reasonable
estimate of the costs that CITY will incur from
LESSEE'S late payment. Acceptance of late charges
and any portion of the late payment by CITY shall
in no event constitute a waiver of LESSEE default
with respect to late payment, nor prevent CITY
from exercising any of the other rights and
remedies granted in this lease.
3.04 Inspection of Records. LESSEE agrees to make any
and all records and accounts available to CITY for
inspection at all reasonable times, so that CITY
can determine LESSEE'S compliance with this lease.
These records and accounts will be made available
by LESSEE at the leased premises and will be
complete and accurate showing all income and
receipts from use of the premises. LESSEE I s
failure to keep and maintain such records and make them available for inspection by CITY is a breach of this lease and cause for termination.
SECTION 4: ASSIGNMENT
4.01 Time is of the Essence: Provisions Binding on
Successors. Time is of the essence for all of the
terms, covenants and conditions of this lease and,
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except as otherwise provided herein, all of the
terms, covenants and conditions of this lease
shall apply to, benefit and bind the successors
and assigns of the respective parties, jointly and
individually.
4.02 Assianment and Subletting. LESSEE shall not assign this lease, or any interest therein, and shall not sublet the premises or any part thereof, or any right or privilege appurtenant thereto, or suffer any other person, except employees, agents
and guests of LESSEE, to use or occupy the
premises or any part thereof, without the prior written consent of the City Manager in each instance. Such consent by the City Manager shall not be unreasonably withheld. A consent to assignment, subletting, occupation or use by any
other person shall not be deemed to be a consent
to any subsequent assignment, subletting,
occupation or use by another person. Any such
assignment or subletting without such consent
shall be void, and shall, at the option of CITY,
terminate this lease. This lease shall not, nor
shall any interest therein, be assignable, as to
the interest of LESSEE, by operation of law, without the written consent of the City Manager.
"Assignmentll, for the purposes of this clause shall include any transfer of any ownership interest in this lease by LESSEE or by any
partners, principals, or stockholders, as the case
may be, from the original LESSEE, its general
partners or principals.
Approval of any assignment or sublease shall be
conditioned upon the assignee or sublessee
agreeing in writing that it will assume the rights
and obligations thereby assigned or subleased and
that it will keep and perform all covenants,
conditions and provisions of this agreement which
are applicable to the rights acquired.
4.03 Defaults and Remedies.
a. Default. In the event that:
(1) LESSEE shall default in the performance of
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any covenant or condition required by this
lease to be performed by LESSEE and shall fail to cure said default within thirty (30)
days following written notice thereof from
CITY; or if any such default is not curable
within thirty (30) days, shall fail to
commence to cure the default(s) within said
thirty-day period and diligently pursue such cure to completion; or
(2) LESSEE shall voluntarily file or have
involuntarily filed against it any petition
under any bankruptcy or insolvency act or law; or
(3) LESSEE shall be adjudicated a bankrupt; or
(4) LESSEE shall make a general assignment for the benefit of creditors;
then CITY may, at its option, without further notice or demand upon LESSEE or upon any person
claiming rights through LESSEE, immediately terminate this lease and all rights of LESSEE and
of all persons claiming rights through LESSEE to
the premises or to possession thereof; and CITY
may enter and take possession of the premises. Provided, however, in the event that any default
described in Section 4.03a.(l), Default and Remedies, hereof is not curable within thirty (30)
days after notice to LESSEE, CITY shall not
terminate this lease pursuant to the default if
LESSEE immediately commences to cure the default
and diligently pursues such cure to completion.
b. Abandonment by LESSEE. Even though LESSEE has
breached the lease and abandoned the property,
this lease shall continue in effect for so long as
CITY does not terminate this lease, and CITY may enforce all its rights and remedies hereunder,
including but not limited to the right to recover the rent as it becomes due, plus damages.
c. Waiver. Any CITY waiver of a default is not a
waiver of any other default. Any waiver of a
default must be in writing and be executed by the City Manager in order to constitute a valid and binding waiver. CITY delay or failure to exercise
a remedy or right is not a waiver of that or any
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other remedy or right under this lease. The use
of one remedy or right for any default does not
waive the use of another remedy or right for the same default or for another or later default. CITY'S acceptance of any rents is not a waiver of
any default preceding the rent payment. CITY and
LESSEE specifically agree that the property constituting the premises is CITY-owned and held in trust for the benefit of the citizens of the
City of San Diego and that any failure by the City
Manager or CITY staff to discover a default shall not result in an equitable estoppel, but CITY
shall at all times, subject to the applicable
statute of limitations, have the legal right to
require the cure of any default when and as such
defaults are discovered or when as the City
Council directs the City Manager to take action or
require the cure of any default after such default
is brought to the attention of the City Council by the City Manager or by any concerned citizen.
4.04 Eminent Domain. If all or part of the premises are taken through condemnation proceedings or under threat of condemnation by any public authority with the power of eminent domain, the
interests of CITY and LESSEE (or beneficiary or mortgagee) will be as follows:
a. In the event the entire premises are taken, this lease shall terminate on the date of the transfer of title or possession to the condemning authority, whichever first occurs.
b. In the event of a partial taking, if, in the opinion of CITY, the remaining part of the premises is unsuitable for the lease operation,
this lease shall terminate on the date of the
transfer of title or possession to the condemning
authority, whichever first occurs.
c. In the event of a partial taking, if, in the opinion of CITY, the remainder of the premises is suitable for continued lease operation, this lease shall terminate in regard to the portion taken on
the date of the transfer of title or possession to
the condemning authority, whichever first occurs,
but shall continue for the portion not taken. The
minimum rent shall be equitably reduced to reflect
the portion of the premises taken.
d. Award. All monies awarded in any such taking
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shall belong to CITY, whether such taking results in diminution in value of the leasehold or the fee or both; provided, however, LESSEE shall be
entitled to any award attributable to the taking
of or damages to LESSEE'S then remaining leasehold
interest in installations or improvements of LESSEE, including crops. CITY shall have no liability to LESSEE for any award not provided by
the condemning authority.
e. Transfer. CITY has the right to transfer CITY'S
interests n the premises in lieu of condemnation
to any authority entitled to exercise the power of
eminent domain. If a transfer occurs, LESSEE
shall retain whatever interest it may have in the fair market value of any improvements placed by it on the premises in accordance with this lease so
long as such rights do not unreasonably or
substantially interfere with LESSEE'S operations.
f . No Inverse Condemnation. The exercise of any CITY right under this lease shall not be interpreted as
an exercise of the power of eminent domain and shall not impose any liability upon CITY for inverse condemnation.
SECTION 5: INSURANCE RISKS/SECURITY
5.01 Indemnity. LESSEE shall at all times relieve, indemnify, protect, and save CITY and any and all of its boards, officers, agents and employees harmless from any and all claims and demands,
actions, proceedings, losses, liens, costs,
judgments, civil fines, and penalties of any
nature whatsoever in regard to or resulting from
the use of the premises, including but not limited
to expenses incurred in legal actions, death,
injury, or damage that may be caused directly or indirectly by:
a. any unsafe or defective condition in or on the
premises of any nature whatsoever which may exist
by reason of any act, omission, neglect, or any
use or occupation of the premises;
b. any operation, use or occupation conducted on the
premises ;
c. any act, omission, or negligence on the part of LESSEE, its employees, agents, sublessees,
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invitees, licensees; or
d. any failure by LESSEE to comply or secure compliance with any of the lease terms or
conditions.
5.02 Insurance. LESSEE shall take out and maintain at all times during the term of this lease the
following insurance at its sole expense:
a. Public liability and Property Damaae Insurance in
the amount of not less than ONE MILLION DOLLARS
($1,000,000) Combined Single Limit Liability with
an occurrence claims form, if available. This policy shall cover all injury or damage, including
death, suffered by any party or parties from acts
or failures to act by CITY or LESSEE or by
authorized representatives of CITY or LESSEE on or
in connection with the use or operation of the
premises.
b. Fire, Extended Coverage, and Vandalism Insurance policy on all insurable property on the premises
in an amount to cover 100 percent of the
replacement cost. Any proceeds from a loss shall be payable jointly to CITY and LESSEE. The
proceeds shall be placed in a trust fund to be
reinvested in rebuilding or repairing the damaged
property. If there is a mortgage or trust deed on
the leasehold in accordance with Section 4.03,
Encumbrance, hereof, the proceeds may be paid to
the approved mortgagee or beneficiary so long as
adequate provision reasonably satisfactory to CITY has been made in each case for the use of all proceeds for repair and restoration of damaged or
destroyed improvements on the premises.
c. Condition. All insurance policies will name CITY
as an additional insured, protect CITY against any
legal costs in defending claims, and will not
terminate without sixty (60) days prior written
notice to CITY. All insurance companies must be
satisfactory to CITY and licensed to do business
in California. All policies will be in effect on
or before the first day of the lease, except
"course of construction fire insurance" shall be
in force on commencement of all authorized
construction on the premises, and full applicable
fire insurance coverage shall be effective upon
completion of each insurable improvement. A copy
of the insurance policy will remain on file with
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CITY during the entire term of the lease. At least thirty (30) days prior to the expiration of each policy, LESSEE shall furnish a certificate (s) showing that a new or extended policy has been
obtained which meets the terms of this lease.
d. Modification. CITY, at its discretion, may
require the revision of amounts and coverages at
any time during the term by giving LESSEE sixty
(60) days prior written notice. CITY 1 s
requirements shall be designed to assure
protection from and against the kind and extent of risk existing on the premises. LESSEE also agrees
to obtain any additional insurance required by
CITY for new improvements, in order to meet the
requirements of this lease.
e. Accident Reports. LESSEE shall report to CITY any
accident causing more than TEN THOUSAND DOLLARS
($10,000) worth of property damage or any serious
injury to persons on the premises. This report
shall contain the names and addresses of the
parties involved, a statement of the
circumstances, the date and hour, the names and
addresses of any witnesses and other pertinent
information.
f. Failure to Comply. If LESSEE fails or refuses to
take out and maintain the required insurance, or
fails to provide the proof of coverage, CITY has
the right to obtain the insurance. LESSEE shall
reimburse CITY for the premiums paid with interest
at the maximum allowable legal rate then in effect
in California. CITY shall give notice of the
payment of premiums within thirty (30) days of payment stating the amount paid, names of the
insurer(s) and rate of interest. Said
reimbursement and interest shall be paid by LESSEE
on the first (1st) day of the month following the
notice of payment by CITY.
Notwithstanding the preceding provisions of this
Subsection f., if LESSEE fails or refuses to take
out or maintain insurance as required in this
lease, or fails to provide the proof of insurance, CITY has the right to declare this lease in
default without further notice to LESSEE and CITY shall be entitled to exercise all legal remedies in the event of such default.
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5.03 Waste, Damase or Destruction. LESSEE agrees to give notice to CITY of any fire or other damage
that may occur on the leased premises within ten
(10) days of such fire or damage. LESSEE agrees
not to commit or suffer to be committed any waste
or injury or any public or private nuisance, to
keep the premises clean and clear of refuse and
obstructions, and to dispose of all garbage,
trash, and rubbish in a manner satisfactory to
CITY. If the leased premises shall be damaged by
any cause which puts the premises into a condition
which is not decent, safe, healthy and sanitary,
LESSEE agrees to make or cause to be made full
repair of said damage and to restore the premises
to the condition which existed prior to said
damage; or, at CITY'S option, LESSEE agrees to
clear and remove from the leased premises all
debris resulting from said damage and rebuild the
premises in accordance with plans and
specifications previously submitted to CITY and approved in writing in order to replace in kind
and scope the operation which existed prior to such damage, using for either purpose the insurance proceeds as set forth in Section 5.02,
Insurance, hereof.
LESSEE agrees that preliminary steps toward
performing repairs, restoration, or replacement of
the premises shall be commenced by LESSEE within
thirty (30) days, and the required repairs,
restoration, or replacement shall be completed within a reasonable time thereafter. CITY may
determine an equitable deduction in the minimum
annual rent requirement for such period or periods
that said premises are untenantable by reason of
such damage.
SECTION 6: IMPROVEMENTS/ALTERATIONS/REPAIRS
6.01 Acceptance of Premises. By signing this lease,
LESSEE represents and warrants that it has independently inspected the premises and made all tests, investigations, and observations necessary
to satisfy itself of the condition of the premises. LESSEE agrees it is relying solely on
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such independent inspection, tests, investigations, and observations in making this lease. LESSEE further acknowledges that the premises are in the condition called for by this lease, that CITY has performed all work with respect to the premises, and that LESSEE does not
hold CITY responsible for any defects in the
premises.
6.02 Entry and Inspection and Channel Maintenance.
CITY reserves and shall always have the right to
enter said premises for the purpose of viewing and ascertaining the condition of the same, or to protect its interests in the premises, or to
inspect the operations conducted thereon. In the event that such entry or inspection by CITY discloses that said premises are not in a decent, safe, healthy, and sanitary condition, CITY shall have the right, after ten (10) days written notice to LESSEE, to have any necessary maintenance work done at the expense of LESSEE, and LESSEE hereby agrees to pay promptly any and all costs incurred by CITY in having such necessary maintenance work done, in order to keep said premises in a decent, safe, healthy, and sanitary condition. Further, if at any time CITY determines that said premises are not in a decent, safe, healthy, and sanitary condition, CITY may at its sole option, without additional notice, require LESSEE to file with CITY a faithful performance bond to assure prompt correction of any condition which is not decent,
safe, healthy and sanitary. Said bond shall be in
an amount adequate in the opinion of the CITY to
correct the said unsatisfactory condition. LESSEE
shall pay the cost of said bond. The rights
reserved in this section shall not create any obligations on CITY or increase obligations elsewhere in this lease imposed on CITY.
6.03 Maintenance. Except as hereinafter provided, LESSEE agrees to assume full responsibility and cost for the operation and maintenance of the premises throughout the term. LESSEE will perform all such repairs and replacements necessary to maintain and preserve the premises in a decent, safe, healthy and sanitary condition satisfactory to CITY and in compliance with all applicable laws. Appropriate codes and standards of CITY,
state and federal agencies shall be observed in
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all maintenance, repairs and replacements on the
premises.
6.04 Improvements/Alterations. No improvements,
structures, or installations shall be constructed
on the premises, and the premises may not be
altered by LESSEE without prior written approval
by the City Manager. Further, LESSEE agrees that major structural or architectural design alterations to approved improvements, structures,
or installations may not be made on the premises
without prior written approval by the City Manager and that such approval shall not be unreasonably withheld. This provision shall not relieve LESSEE of any obligation under this lease to maintain the
premises in a decent, safe, healthy, and sanitary condition, including structural repair and restoration of damaged or worn improvements. CITY
shall not be obligated by this lease to make or assume any expense for any improvements or
alterations.
6.05 Utilities. LESSEE agrees to order, obtain, and pay for all utilities and service and installation charges in connection with the development and
operation of the leased premises.
6 -06 Liens. LESSEE shall at all times save CITY free
and harmless and indemnify CITY against all claims
for labor and materials in connection with
operations, improvements, alterations, or repairs
on or to the premises and the costs of defending
against such claims, including reasonable
attorney’s fees.
If improvements, alterations, or repairs are made
to the premises by LESSEE or by any party other
than CITY, and a lien or notice of lien is filed,
LESSEE shall within five (5) days of such filing
either:
a. take all actions necessary to record a valid
release of lien, or
b. file with CITY a bond, cash, or other
security acceptable to CITY sufficient to pay
in full all claims of all persons seeking
relief under the lien.
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6.07 Taxes. LESSEE agrees to pay, before delinquency,
all taxes, assessments, and fees assessed or
levied upon LESSEE or the premises, including the
land, any buildings, structures, machines,
equipment, appliances, or other improvements or
property of any nature whatsoever erected,
installed or maintained by LESSEE or levied by
reason of the business or other LESSEE activities
related to the leased premises, including any
licenses or permits. LESSEE recognizes and agrees
that this lease may create a possessory interest
subject to property taxation, and that LESSEE may
be subject to the payment of taxes levied on such interest, and that LESSEE shall pay all such possessory interest taxes. LESSEE further agrees
that payment for such taxes, fees and assessments will not reduce any rent due CITY.
6.08 Signs. LESSEE agrees not to erect or display any banners, pennants, flags, posters, signs, decorations, marquees, awnings, or similar devices
or advertising without the prior written consent of CITY. If any such unauthorized item is found
on the premises, LESSEE agrees to remove the item
at its expense within 24 hours notice thereof by
CITY, or CITY may thereupon remove the item at
LESSEE'S cost.
6.09 Ownership of Immovements and Personal Property.
a. Any and all improvements, trade fixtures,
structures and installations or additions to
the premises now existing or constructed on the premises by LESSEE shall at lease
expiration or termination be deemed to be
part of the premises and shall become, at
CITY'S option, CITY'S property, free of all
liens and claims except as otherwise provided
in this lease.
b. If CITY elects not to assume ownership of all
or any improvements, trade fixtures,
structures and installations, CITY shall so
notify LESSEE in accordance with notification
of termination or default and provisions of Sections 2.04 or section 4.03 of this lease
or one hundred eighty (180) days prior to expiration and LESSEE shall remove all such improvements, structures and installations as directed by CITY at LESSEE'S sole cost on or
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before lease expiration or termination. If
LESSEE fails to remove any improvements,
structures, and installations as directed,
LESSEE agrees to pay CITY the full cost of
any removal.
c. LESSEE-owned machines, appliances, equipment
(other than trade fixtures), and other items of personal property shall be removed by Lessee by the date of the expiration or termination of this lease. Any said items which LESSEE fails to remove will be
considered abandoned and become CITY'S
property free of all claims and liens, or
CITY may, at its option, remove said items at
LESSEE'S expense.
d. If any removal of such personal property by
LESSEE results in damage to the remaining
improvements on the premises, LESSEE agrees
to repair all such damage.
e. Any necessary removal by either CITY or LESSEE which takes place beyond said expiration or termination thereof shall require LESSEE to pay rent to CITY at the rate in effect immediately prior to said expiration or termination.
f. Notwithstanding any of the foregoing, in the
event LESSEE desires to dispose of any of its personal property used in the operation of said premises upon expiration or termination of this lease, then CITY shall have the first right to acquire or purchase said personal property.
SECTION 7: GENERAL PROVISIONS
7.01 Notices
a. Any notice required or permitted to be given
hereunder shall be in writing and may be
served personally or by United States mail,
postage prepaid, addressed to LESSEE at the
leased premises or at such other address
designated in writing by LESSEE; and to CITY
as follows:
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City Manager
1200 Carlsbad Village Drive Carlsbad, CA 92008
Copies to:
City Engineer 1200 Carlsbad Village Drive Carlsbad, CA 92008
or to any mortgagee, trustee, or beneficiary as applicable, at such appropriate address designated in writing by the respective
party.
b. Any party entitled or required to receive notice under this lease may by like notice designate a different address to which notices shall be sent.
7.02 Compliance with Law. LESSEE shall at all times in
the construction, maintenance, occupancy and
operation of the premises comply with all
applicable laws, statutes, ordinances, and
regulations of CITY, County, State and Federal Governments at LESSEE'S sole cost and expense. In addition, LESSEE shall comply with any and all notices issued by the City Manager or his authorized representative under the authority of any such law, statute, ordinance, or regulation.
7.03 CITY Approval. The approval or consent of CITY,
wherever required in this lease, shall mean the
written approval or consent of the City Manager
unless otherwise specified, without need for
further resolution by the City Council.
7.04 Nondiscrimination. LESSEE agrees not to
discriminate in any manner against any person or persons on account of race, marital status, sex, religious creed, color, ancestry, national origin, age or physical handicap in LESSEE'S use of the premises, including, but not limited to the providing of goods , services , facilities, privileges, advantages, and accommodations, and the obtaining and holding of employment.
7.05 Partial Invalidity. If any term, covenant, condition or provision of this lease is found
invalid, void or unenforceable by a court of
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competent jurisdiction, the remaining provisions
will remain in full force and effect.
7.06 Entire Understanding. This lease contains the entire understanding of the parties. LESSEE, by
signing this agreement, agrees that there is no other written or oral understanding between the parties with respect to the leased premises. Each
party has relied on its own examination of the
premises, advice from its own attorneys, and the warranties, representations, and covenants of the
lease itself. Each of the parties in this lease
agrees that no other party, agent, or attorney of
any other party has made any promise,
representation, or warranty whatsoever which is
not contained in this lease.
The failure or refusal of any party to read the
lease or other documents, inspect the premises, and obtain legal or other advice relevant to this
transaction constitutes a waiver of any objection, contention, or claim that might have been based on these actions. No modification, amendment, or alteration of this lease will be valid unless it is in writing and signed by all parties.
7.07 Agricultural Provisions. LESSEE shall use
standard agricultural practices in growing, tending and harvesting said crops and shall not use the property in such a manner as to constitute a nuisance to adjoining property owners or lessees. LESSEE shall comply with the following requirements:
a. Drip irrigation shall be used whenever possible.
b. All plastic material and debris shall be
completely removed from the property at the
completion of the lease.
c. No aerial application of pesticides or
fertilizers shall be permitted.
d. A IIResource Management System" which is a
detailed report on what crops will be grown,
how crops will be irrigated, what pesticides
will be used, what type of fertilizer will be
used and the application methods of
pesticides and fertilizers, shall be
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submitted and approved by the Public Works Director or his designee prior to commencement of agricultural operations of
the land.
e. No planting, grading, spraying, cultivating or
other disturbance whatsoever shall be allowed in
the wetlands area, riparian area, rare and
endangered plant species area, or archaeological
area.
f. Erosion shall be controlled and monitored by
the Universal Soil Loss Equation provided by
U.S. Soil Conservation Service. If erosion
exceeds three tons per acre CITY may
terminate this lease.
g. No soil is to be left uncropped.
h. No land with an average slope of 30 percent
or more shall be farmed.
i. All pesticide application shall be approved
and supervised by the county agricultural
office, with all necessary permits obtained
from county in advance. A complete record of
fertilization and pesticide application must
be kept and made available upon request by CITY.
j. Access roads shall be limited to those approved by the Public Works Director and shall not cause erosion problems.
7.08 Agricultural Operations. LESSEE agrees to abide
by the conditions for agricultural operations set
forth herein. Failure of LESSEE to cease or cure
any unauthorized practice within 30 days after
written notice to do so shall be grounds for, at the option of CITY, an immediate termination of the lease. LESSEE shall not be entitled to additional time to cure the default as otherwise provided for in Section 4.03 of this lease.
7.09 Noxious Weeds, Pests. LESSEE shall take proper
corrective action, to the satisfaction of CITY, to
prevent the infestation of noxious weeds and
pests.
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7.10 Control of Livestock. The premises shall be
adequately fenced to control livestock without
cost to CITY and in a manner satisfactory to CITY.
LESSEE shall be solely responsible for all damage
of any kind resulting from livestock leaving said
premises.
7.11 Employee Housina Prohibited. LESSEE shall not
provide housing for employees or any other persons
on the property. LESSEE shall not permit LESSEE’ s
employees or any other persons to reside upon the
property in any way.
SECTION 8 : WARRANTY
8.01 Warranty The CITY does not warrant that the
premises are suitable for the agricultural
purposes for which they are leased.
//// //// //// //// //// ////
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SECTION 9: SIGNATURES
9.01 Sjanature Paae
IN WITNESS HEREOF, this lease Agreement is executed by the
city of Carlsbad acting by and through its Mayor, and by Lessee,
acting by and through its duly authorized officers.
Date :
LESSEE :
MATTESON GREENHOUSES
BY: % 'ax /-* Wlgnature)
~&H&?t/C4rm (P?lnt Name 1 ~- PgJ
tTltle)
CITY OF CARL
BY:
ATTEST :
BY:
(Sqnature)
(Print Name)
APPROVED AS TO FORM: RONALD R. BALL, City Attorney
(Tltlel BY: LvEy *& orney
//- 4 -7 e*
EXHIBIT A: Property Description
EXHIBIT B: Parcel Map
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21
,
-. ., i .,,:.- . . .. - I - .. . . -. '. _: ,,_ . - _. ~. . . , . . . . .., -" . "._ - ....&::*: . . :-.. L ;::.< .-? 1. . . _.. . . . , .. . _i.. ^_..._ 'I ,r-.i-:. .. -.
- . . ..,< " " ~ . - .. ,. . ~ e 0
ALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT No. 5907
j State of ~dd I I County of LV&&
1 On rcl,/zq/&? beforeme, h'lm /n;lly 1(1OfUfv Pccbki, 1 1 personally appeared &fie Rf We M de S(I vl ?
' q - OR -@proved to me on the basis of satisfactory evidence
, to be the person@ whose name($)@,
subscribed to the within instrument and ac-
knowledged to me that@sbe&ey executed
the same in @tw&t-bk authorized
capacity(*), and that by@-
signature@ on the instrument the personH,
or the entity upon behalf of which the
person($ acted, executed the instrument.
WITNESS my hand and official seal.
I
&E. TITLE OF OFFICER - E.G.. *JANE DOE, dTARY PUBLIC'
NAME@) OF SIGNER(S)
I
SIGNATUR~ OF NOTARY
OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent
fraudulent reattachment of this form.
1 CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT t 1 INDIVIDUAL
I i WCORPORATE OFFICER
I
I I TITLE(S)
i PARTNER(S) LIMITED
' AlTORNEY-IN-FACT
GENERAL
TRUSTEE(S) 0 GUARDIANKONSERVATOR 0 OTHER:
0 TITLE OR TYPE OF DOCUMENT
21
NUMBER OF PAGES
q/w/w 4a 9Ilrtl10~ I
DATE OF DOCUM~NTI
SIGNER IS REPRESENTING: NAME OF PERSON(S) OR ENTITY(IES)
SIGNER@) OTHER THAN NAMED ABOVE
- ~ ~ - ~ ".." ~ ~ - ~ . -- " "" """
01993 NATIONAL NOTARY ASSOCIATION 8236 Rernmet Ave., P.O. Box 7184 Canoga Park, CA 91309-7184
p WNUTES O? SPWIAL HEETING OF THE WARD OF DIRECTORS
..." of the Board of Dtt8CtOrr of
D, Yam held at the principal office o fur #-
the ~arpararion en the 29 day sf at the hour of , in accordance wit UI, notice y
the Secretary o t a arpsrat ton. A&!+ "miyd a 19+?
Thr foliwtng Oirtcturr were prtrsnt, reprcrrnting all melaberr of the Borrd:
B/#d *ud CM CON~RA~~. f5lS W To~p&pt/""/
flig WAS A/pROud &?x ~~~VW~& vor2 so
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m/wuF-s FeOM PQ -PS)OUP fiL??W4 Lccee4 hfid
Th8ra bin& b0 furthe? btuin08B tQ CO# bOfate the matine,
upon metfen duly made ad srcaded, the Chirfmn datlrrrd thm meeting adjourned.
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EXHIBIT A
All that portion of Lot “H” of the Rancho Agua Hedionda, in the City
of Carlsbad, County of San Diego, State of California, according to
Partition Map thereof No. 823, filed in the Office of the County Recorder of
said County, November 16, 1896 described as follows:
Beginning at the most Northerly corner of Lot 163 of Terramar Unit
No. 5, according to Map thereof No. 3371 filed in the Office of the County
Recorder of said County; thence along the Easterly prolongation of the
Northerly boundary of said Terramar Unit No. 5 North 59’21’10’’ East 2.00
feet to the TRUE POINT OF BEGINNING; thence continuing along said
Easterly prolongation of said Northerly boundary of Terramar Unit No. 5
North 59°21’10 East 226.92 feet to a point on the Westerly Right of Way
of the Atchison, Topeka and Santa Fe Railway Company as said right of
Way was established on September 22, 1948; thence along said Right of
Way North 23°06’00” West 937.82 feet to a point; thence South 66O54’10”
West 103. I 1 feet to the beginning of a tangent 3042 foot radius curve
concave Northerly; thence Westerly along the arc of said curve through a
central angle of 5O32’30” a distance of 294.22 feet, a radial from said point
bears North 17O33’20 West; thence South 37’35’34 East 95.63 feet;
thence South 30°38’50 East 535.00 feet; thence South 38O33’38” East
218.10 feet; thence South 30’38’50 East 150.00 feet to the TRUE POINT
OF BEGINNING.
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