HomeMy WebLinkAbout2014-07-08; City Council; Resolution 2014-1711 RESOLUTION NO. 2014-171
2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
3 CALIFORNIA, AUTHORIZING EXECUTION OF A LEASE AGREEMENT
BETWEEN THE CITY OF CARLSBAD AND MIRACOSTA COLLEGE
4 COMMUNITY SERVICES AND BUSINESS DEVELOPMENT AT 2075
LAS PALMAS DRIVE FOR THE PURPOSES OF OPERATING A
5 TECHNOLOGY CAREER INSTITUTE AND SMALL BUSINESS
DEVELOPMENT CENTER.
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7 WHEREAS, the City has determined it is desirable and in the best interest ofthe
8 community to enter into a six year lease agreement with MiraCosta College Community
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Services and Business Development to lease the Las Palmas building located at 2075 Las Palmas
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Drive, for the purposes of establishing and maintaining a technology career institute and small
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business development center; and
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13 WHEREAS, the City's economic development goal is to focus on creating quality
14 Jobs for the businesses in the City's main industry clusters; and
15 WHEREAS, the City's economic development goal is also to become a focus for
higher education and research to grow the skilled labor force in the city; and
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WHEREAS, support of the robotics and engineering skilled workforce that
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remains a required job requirement of many of the major companies in Carlsbad and more
2Q specifically in the City Center in which the subject property is located; and
21 WHEREAS, the City has determined that it is necessary and appropriate to enter
22 into the subject lease and extend the use of the building for the Technology Career Institute in
order to further support the workforce training goals and industry recognized certificate
programs including workforce training in electromechanical engineering, robotics/automation,
and fluid power; and
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1 WHEREAS, the City and MiraCosta College Community Services and Business
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Development have agreed to all terms ofthe lease.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad,
California, as follows that:
1. The above recitations are true and correct.
7 2. That upon approval as to form, by the City Attorney, the Mayor is
8 authorized to execute the lease agreement attached hereto between the City of Carlsbad and
MiraCosta College Community Services and Business Development.
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PASSED, APPROVED AND ADOPTED at a Regular Meeting ofthe City Council ofthe City
of Carlsbad on the 8th day of July 2014, bythe following vote to wit:
AYES:
NOES:
Council Members Hall, Packard, Wood, Schumacher, Blackburn.
None.
ABSENT: None.
ATTEST:
^yi JL.^
BARBARA ENGLESONC^ity Clerk
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EXHIBIT 2
CITY OF CARLSBAD
LEASE AGREEMENT
PREMISES:
2075 Las Palmas Drive
Carlsbad, CA 92011
LESSEE:
Mira Costa Community Services and Business Development
TERM: Six (6) Years
CITY OF CARLSBAD
LEASE AGREEMENT INDEX
1. DEFINITION OF TERMS 2
2. TERM 2
3. TERMINATION OF LEASE 2
4. OPTIONS TO RENEW 3
5. VACATION OF PREMISES 3
6. RENT 4
7. COST OF LIVING ADJUSTMENT 4
8. SECURITY DEPOSIT 4
9. UTILITIES PAYMENTS 4
10. TAXES, ASSESSMENTS, AND FEES 4
11. ACCEPTANCE AND MAINTENANCE 5
12. ALTERATIONS 5
13. USE 5
14. OCCUPANCY, ASSIGNMENT AND SUBLETTING 6
15. LESSEE'S GOALS 6
16. BENCHMARKING AND REPORTING 7
17. PETS 8
18. NOTICES 8
19. RIGHT OF INSPECTION 8
20. AUDIT 8
21. RIGHT TO SHOW PREMISES 8
22. INSURANCE 8
23. INDEMNIFICATION 10
24. NONDISCRIMINATION 10
25. HAZARDOUS AND/OR CONTAMINATED SOIL AND MATERIAL 10
26. LAW TO GOVERN; VENUE 10
27. AMERICANS WITH DISABILITIES ACT (ADA) II
28. WAIVER OF RELOCATION ASSISTANCE 11
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LEASE AGREEMENT
This Lease Agreement ("Lease") is made this 17* day of July, 2014
Between: City of Carlsbad
a chartered municipal corporation
1200 Carlsbad Village Drive
Carlsbad, Califomia 92008
("City")
And: MiraCosta Community College District, on behalf of the MiraCosta Community
Services and Business Development
("Lessee")
WHEREAS, City desires to rent to Lessee and Lessee desires to rent from City certain publically
ovmed property located at 2075 Las Palmas Drive in the City of Carlsbad, for the purpose of
operating a Technology Career Institute and Small Business Development Center. The Premises
is defmed below and fully described in Exhibit "A," which is incorporated by this reference.
NOW THEREFORE, it is mutually agreed by and between City and Lessee as follows:
1. DEFINITION OF TERMS.
The following words in this Lease Agreement shall have the significance attached to them
in this clause unless otherwise apparent from their context.
a. "Lease" means this Lease Agreement.
b. "Premises" means 2075 Las Palmas Drive, Carlsbad, Califomia, which includes a
22,627 square foot building and parking as more fully described in Exhibit "A."
c. "Lessee" means the MiraCosta Commuity College District on behalf of
MiraCosta Community Services and Business Development and does not include
its heirs, assigns, or successors-in-interest.
d. "Invitees" means any individual or organization who enters the Premises at the
express or implied invitation of Lessee.
2. TERM.
The term of this Lease shall be six (6) years, commencing on July 17,2014.
3. TERMINATION OF LEASE.
3.1 Each party shall have the right to terminate this Lease without cause for any reason
by giving ninety (90) days prior vwitten notice to the other party.
3.2 City Manager shall have the right to terminate this Lease for cause by giving thirty
(30) days prior written notice to Lessee for any of the following events:
3.2.1 Lessee's failure to comply with the following clauses in this Lease shall
constitute cause to terminate the Lease:
Acceptance and Maintenance, Paragraph 11
Alterations, Paragraph 12
Use, Paragraph 13
Occupancy, Assignment and Subletting, Paragraph 14
Insurance, Paragraph 22
Americans with Disabilities Act (ADA), Paragraph 27
3.2.2 If the City discovers at any time during the lease term that the Lessee or
any other party has used, is using, or will use the Premises in an unlawful
manner or for an unlawful purpose, or in any manner that is inconsistent
with any provision of this Lease.
3.2.3 Failure to pay any installment of Rent, continuing for a period of five (5)
days after receipt of City's written notice that such amount is due. Lessee
agrees that any such written notice delivered by the City shall, to the fullest
extent permitted by law, serve as the statutorily required notice under
applicable law to the extent Lessee fails to cure such failure to pay within
such five (5) day period. In addition to the foregoing. Lessee agrees to
notice and service of notice as provided for in accordance with applicable
statutory requirements.
3.2.4 Failure in the performance of any of the Lessee's agreements, or
obligations which failure continues for 30 days after written notice thereof
from the City to the Lessee; provided that, if Lessee has exercised
reasonable diligence to cure such failure and such failure carmot be cured
within such 30 day period despite reasonable diligence. Lessee shall not be
in default under this subparagraph unless Lessee fails thereafter diligently
and continuously to prosecute the cure to completion.
4. OPTIONS TO RENEW.
If Lessee desires to renew this Lease, Lessee shall provide written notice to City of
Lessee's intent to renew not less than sixty (60) days prior to the expiration of the initial
Lease term or first renewal year. City shall respond to Lessee's renewal request in writing
within thirty (30) days of receiving such notice. City reserves the right to modify the rent
rate for each renewal year at the City Council's discretion.
5. VACATION OF PREMISES.
5.1 Upon termination of this Lease for any reason, Lessee shall peaceably vacate, and
shall cause its Invitees to peaceably vacate, and deliver the Premises to City in the
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same condition as Lessee found them upon its acceptance of the Premises
herevmder, excepting ordinary wear and tear, conditions caused by acts of God and
improvements made in accordance with Section 12 herein.
5.2 Upon such termination. Lessee shall immediately:
5.2.1 Arrange and pay for the disconnection of all utilities and services ordered
by Lessee;
5.2.2 Provide a written statement to the Municipal Property Manager of Lessee's
new address for purpose of refunding monies , if any due Lessee under this
Lease, and forwarding mail; and
5.2.3 Deliver any keys for the Premises to the Municipal Property Manager or
send said keys by certified mail to the address stated in Paragraph 18
below.
6. RENT.
In consideration of the possession and use of the Premises, Lessee shall deliver and pay
rent to City during the term of this Lease in the amount of Five Thousand Six Hundred
Fifty Six dollars and Seventy Five cents ($5,656.75) per month.
7. COST OF LIVING ADJUSTMENT.
Not applicable in initial lease term.
8. SECURITY DEPOSIT.
Lessee shall not be obligated to deliver a security deposit in connection with this Lease.
9. UTILITIES PAYMENTS.
Lessee will be solely responsible to pay for any utilities and services necessary for the
occupancy of the Premises.
10. TAXES. ASSESSMENTS. AND FEES.
10.1 The terms of this Lease may result in the creation of a possessory interest. If such
a possessory interest is vested in Lessee, Lessee may be subjected to the payment
of personal property taxes levied on such interest. Lessee shall be responsible for
the payment of, and shall pay before delinquent, all taxes, assessments, and fees
assessed or levied upon Lessee, on said Premises or any interest therein, on any
buildings, stmctures, machines, appliances, or other improvements of any nature
whatsoever, or on any interest therein.
10.2 Lessee further agrees not to allow such taxes, assessments, or fees to become a lien
against said premises or any improvement thereon. Nothing herein contained shall
be deemed to prevent or prohibit Lessee from contesting the validity of amount of
any such tax, assessment, or fee in any manner authorized by law.
11. ACCEPTANCE AND MAINTENANCE.
11.1 Lessee hereby acknowledges that Lessee has inspected the Premises, that Lessee
accepts said Premises "as is" and "where is," that the Premises are in a good and
sanitary order, condition, and repair.
11.2 Lessee agrees to take good care of the Premises and all improvements, alterations,
fixtures, and appurtenances thereon. Lessee agrees to provide for maintenance and
upkeep of the Premises, as necessary to preserve the Premises in good order and
condition, except that City shall provide for maintenance and repair of all
landscaping, grounds, roof, electrical and HVAC. Said repairs and maintenance
shall be made in a good and professional manner, and at least equal to the
condition and quality of the repaired items at the inception of this Lease. Lessee
agrees to be solely responsible for all costs of maintenance and repair except as
noted above.
11.3 In the event Lessee fails to properly maintain the premises as required by City,
then City may notify Lessee in writing of said failure. In the event Lessee fails to
perform said maintenance within thirty (30) days after such notice by City, City
may immediately terminate this Lease, pursuant to Paragraph 3.2 above.
12. ALTERATIONS.
12.1 Lessee shall make the aherations and improvements to the Premises, at Lessee's
sole cost and expense, that Lessee reasonably believes are necessary to operate
said Premises. Any and all alterations and improvements made to the Premises
must first be approved in writing by the Municipal Property Manager.
12.2 At the City's option, any improvements made with the consent of the Municipal
Property Manager shall become a fixture to the realty and shall remain on and be
surrendered with the Premises upon termination of this Lease. If the City opts for
the removal of the fixtures, the Lessee will remove at the Lessee's sole expense
upon termination of the Lease.
12.3 Noncompliance by Lessee or its Invitees with any provision of this clause shall be
cause to terminate this Lease for the City pursuant to Paragraph 3.2 above.
12.4 Before making any improvement that require a City and/or other jurisdictional
permit(s), the Lessee is responsible for obtaining all such jurisdictional permit(s)
from the City or other agency with jurisdictional authority at Lessee's sole cost and
expense. Written approval of alterations and improvements by the Municipal
Property Manager as described in Section 12.1 above does not negate the need to
obtain such required City or other jurisdictional agency permit(s).
13. USE.
Lessee agrees to use the Premises as follows:
13.1 To create a center that will serve as a technology career institute where attendees
can become skilled professionals in advanced manufacturing and be trained on
machinery and/or new technology that will create jobs and benefit Carlsbad
businesses and the region. The center will provide leaming opportunities for
businesses utilizing the Small Business Development Center and could potentially
create additional partnerships to strengthen the educational goals and improve the
skills of the workforce. Lessee shall be allowed to hold events and functions that
will promote the center's purpose and function, such as Job Fairs, Industry Open
Houses, STEM summer outreach programs from High School and Middle School
students, and program fund raisers.
13.2 Lessee shall not use, nor permit the use of, the Premises other than as described in
Paragraph 13.1 above. In any case where Lessee is, or should reasonably be, in
doubt as to the propriety of any particular use, Lessee may request, and will not be
in breach or default if Lessee abides by, the written determination of the Municipal
Property Manager that such use is permitted.
13.3 Noncompliance by Lessee or its Invitees with any provision of this clause shall be
cause to terminate this Lease for the City pursuant to Paragraph 3.2 above.
13.4 All uses shall be in compliance with the City codes, the underlying Specific Plan
for the Carlsbad Airport Business Park and its the Covenants, Conditions and
Restrictions for the Premises.
14. OCCUPANCY. ASSIGNMENT AND SUBLETTING.
The Premises shall only be occupied by Lessee and Lessee's Invitees. Lessee agrees to
require its Invitees to utilize the premises in accordance with the Lease Agreement. Lessee
shall not assign this Lease or any interest therein without the prior written consent of the
Municipal Property Manager. Any such assignment without the City's consent shall be
void and shall, at the option of City, be cause for the terminate this Lease, pursuant to
Paragraph 3.2 above.
15. LESSEE'S GOALS.
In consideration for the letting of the Premises and amenities provided by the City, Lessee
agrees to use its best efforts to accomplish the following objectives in order to provide a
public benefit:
15.1 Order machines and equipment.
15.2 Implement Trade Adjustment Community College and Career Training
(TAACCCT) grant-funded programs in phases based on industry need. Lessee
may first start these programs at the current facility at the Landes Center in
Oceanside, and then move the program over with the machinist program when the
Premises is ready.
15.3 Move its current machinist program and other non-technology based programs into
the Premises.
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15.4 Securing national certifications. Many of these certifications take many months of
paperwork, training and testing, site visits, etc.
15.5 Develop transfer agreements, set-up initial coursework, and continue discussions
with Cal State San Marcos, Palomar College, University of San Diego, Brown
University, and other colleges and universities for long-term educational
partnerships.
16. BENCHMARKING AND REPORTING.
During the duration of this Lease term, Lessee agrees to provide the Economic
Development Manager with armual reports on July I of each year for progress on the
Technology Career Institute. Key performance indicators to identify in the armual report:
• TCI will enroll 550 new students and 225 incumbent workers, totaling 775.
• TCI will graduate 495 students per year and 225 incumbent workers, if 90% new
students enrolled graduate and 100% of incumbent workers are enrolled.
• The total number of actual participants enrolled and graduated in TCI programs
each year.
• TCI will be awarding nationally approved work skills certifications, such as
National Career Readiness Certificate, International Society of Automation
Certification, Electronics Technicians Association Certification, and National
Institute for Metalworkign Skills (NIMS) Certification. The number of National
Certifications will be reported each year.
• The number of graduates who have been placed in full-time employment and part-
time employment within 3 months of graduation, target is 446, if 90% of new
student program graduates.
• The number of graduates who have been placed in full-time employment and part-
time employment in Carlsbad within 3 months of graduation, target is 75.
• TCI's involvement, contributions, and collaboration with Carlsbad industry and
work skills agencies.
16.1 Lessee, Invitees and their guests shall at all times conduct themselves in a quiet
and dignified manner so as not to cause annoyance or inconvenience to neighbors
of Lessee or nearby residents.
16.2 Lessee and Invitees shall not violate, or permit the violation of, any City or County
ordinance, or state or federal law, in or about the Premises.
16.3 Noncompliance by Lessee or its Invitees with any provision of this clause shall be
cause to terminate this Lease for the City pursuant to Paragraph 3.2 above.
17. PETS.
No pets or livestock of any kind may be kept on the Premises without the prior written
consent of the Municipal Property Manager.
18. NOTICES.
Any notice or other documentation required or permitted to be given by this Lease must
either be personally served on the other party or served by certified mail, retum receipt
requested, to the addressee below. Notices served by mail shall be sent to the address listed
below and shall be deemed delivered as of the date shown on the delivery receipt as the
date of delivery, the date delivery was refused, or the date the notice was retumed as
undeliverable. A change of either party's address must also be immediately served in the
maimer described above.
For Citv: For Lessee;
Christina Vincent, Economic Development Charlie Ng, Vice President Business and
Manager Administrative Services
City of Carlsbad MiraCosta Community College District
Community and Economic Development 1 Bamard Drive,
1635 Faraday Avenue Oceanside, CA 92056
Carlsbad, CA 92008
19. RIGHT OF INSPECTION.
City reserves the right for its agents or employees to enter upon and inspect the Premises
during business hours to ascertain if Lessee is complying with the provisions of this Lease.
20. AUDIT.
City reserves the right to have city employees or its agents conduct financial audits of
Lessees financial records in any way related to the Premises once yearly. City shall
provide at least three (3) business days advance notice to Lessee of City's intent to inspect
such records.
21. RIGHT TO SHOW PREMISES.
City reserves the right, during the last sixty (60) days of this Lease, or any extension
thereof, to conduct an "open house" of the Premises in order to facilitate re-leasing or sale
the Premises. Said "open house" shall not exceed four hours total duration (maximum of
two separate days), and when possible, be scheduled from 3:00 p.m. to 5:00 p.m., Monday
through Friday.
22. INSURANCE.
Lessee will obtain and maintain for the duration of this Lease and any and all amendments,
insurance against claims for injuries to persons or damage to property which may arise out
of or in connection with the occupancy or use of the Premises by Lessee or its Invitees,
visitors, agents, representatives, employees or subcontractors. The insurance will be
obtained from an insurance carrier admitted and authorized to do business in the State of
Califomia. The insurance carrier is required to have a current Best's Key Rating of not less
than "A-:Vn" OR with a surplus line insurer on the State of Califomia's List of Eligible
Surplus Line Insurers (LESLI) with a rating in the latest Best's Key Rating Guide of at
least "A:X".
22.1 Coverages and Limits. Lessee will maintain the types of coverages and minimum
limits indicated below, unless the City Risk Manager approves a lower amount.
These minimum amounts of coverage will not constitute any limitations or cap on
Lessee's indemnification obligations under this Lease. City, its officers, agents and
employees make no representation that the limits of the insurance specified to be
carried by Lessee pursuant to this Lease are adequate to protect Lessee. If Lessee
believes that any required insurance coverage is inadequate. Lessee will obtain
such additional insurance coverage, as Lessee deems adequate, at Lessee's sole
expense.
22.2 Commercial General Liability Insurance. $1,000,000 combined single-limit per
occurrence for bodily injury, personal injury and property damage. If the submitted
policies contain aggregate limits, general aggregate limits will apply separately to
the work under this Lease or the general aggregate will be twice the required per
occurrence limit.
22.3 Workers' Compensation and Employer's Liability. Workers' Compensation limits
as required by the Califomia Labor Code. Workers' Compensation will not be
required if Lessee has no employees and provides, to City's satisfaction, a
declaration stating this.
22.4 Additional Provisions. Lessee will ensure that the policies of insurance required
under this Lease contain, or are endorsed to contain, the following provisions:
22.4.1 The City will be named as an additional insured on Commercial General
Liability which shall provide primary coverage to the City.
22.4.2 Lessee will obtain occurrences-type coverage.
22.4.3 This insurance will be in force during the life of the Agreement and any
extensions of it and will not be canceled without thirty (30) days prior
written notice to City sent by certified mail pursuant to the Notice
provisions of this Lease.
22.5 Providing Certificates of Insurance and Endorsements. Prior to City's execution of
this Lease, Lessee will fumish certificates of insurance and endorsements to City.
22.6 Failure to Maintain Coverage. If Lessee fails to maintain any of these insurance
coverages, then City will have the option to declare Lessee in breach, or may
purchase replacement insurance or pay the premiums that are due on existing
policies in order to maintain the required coverages. Lessee is responsible for any
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payments made by City to obtain or maintain insurance and City may collect these
payments from Lessee within ten (10) days of payment.
22.7 Noncompliance by Lessee or its Invitees with any provision of this clause shall be
cause to terminate this Lease for the City pursuant to Paragraph 3.2 above.
23. INDEMNIFICATION.
Lessee shall defend, indemnify, and hold harmless City, its officers, agents, volunteers and
employees from and against any and all claims, demands, and liabilities for loss of any kind
or nature which City, its officers, agents, volunteers or employees may sustain or incur or
which may be imposed upon them or any of them for injury to or death of persons or
damage to property as a result of, arising out of, or in any manner connected with this
Lease or with the occupancy and use of the Premises by Lessee, its Invitees, visitors, or any
other persons whatsoever. Lessee further agrees to pay any and all costs and expenses,
including, but not limited to, court costs and reasonable attorney's fees incurred by City on
account of any such claims, demands, or liabilities. However, the provisions of this Lease
shall not be constmed to indemnify City for claims or acts arising from City's sole
negligence, active negligence or willful acts.
24. NONDISCRIMINATION.
Lessee herein covenants that this Lease is made and accepted upon and subject to the
condition that there shall be no discrimination against or segregation of any person or
group of persons on account of physical or mental disabilities, race, color, creed, religion,
sex, marital status, national origin or ancestry in the use, occupancy, tenure or enjoyment of
the leased premises. Lessee shall not establish or permit any such practice of discrimination
or segregation with reference to the selection, location, number, or use of occupancy by
customers, tenants, invitees or vendees in the leased Premises.
25. HAZARDOUS AND/OR CONTAMINATED SOIL AND MATERIAL.
Lessee will not place or permit to be placed materials and/or contaminated soils on the
Premises which under federal, state, or local law, statute, ordinance, or regulations require
special handling in collection, storage, treatment, and/or disposal. Lessee also hereby
covenants and agrees that, if at any time it is determined there are materials and/or
contaminated soils located on the Premises which under any environmental requirement
require special handling in collection, storage, treatment, or disposal. Lessee shall notify
City. Within thirty (30) days after written notice to City or from City, Lessee shall
commence to take and thereafter diligently complete, at Lessee's sole expense, such actions
as may be necessary to comply with environmental requirements. This obligation shall
survive the term or the early termination of this Lease.
26. LAW TO GOVERN; VENUE.
This Lease Agreement shall be interpreted, constmed and govemed according to the laws
of the State of Califomia. In the event of litigation between the parties, venue in state trial
courts shall lie exclusively in the County of San Diego, North County Branch. In the event
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of litigation in a U.S. District Court, venue shall lie exclusively in the Southem District of
Califomia, in San Diego.
27. AMERICANS WITH DISABILITIES ACT fADA).
It is the duty of the Lessee while operating under this Lease to comply with all local, state,
and federal laws, including, but not limited to, the Americans with Disabilities Act and to
indemnify City from any violation of any such law. Failure by Lessee or its Invitees to
comply with a provision of local, state, or federal law is grounds for immediate termination
of this Lease by the City pursuant to Paragraph 3.2 above.
28. WAIVER OF RELOCATION ASSISTANCE.
Lessee is aware of the provision of Califomia's Relocation Assistance Act (Cal. Gov. Code
§ 7260, et seq.) and hereby irrevocably waives any and all benefits of said act on behalf of
Lessee, all Lessee's ofthe Premises as of the date of execution hereof, and each of Lessee's
assignees or subtenants under this Lease. Lessee agrees to this waiver after consulting with
its attomeys, and being advised of the full implications of this waiver.
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IN WITNESS WHEREOF, the parties below are authorized to act on behalf of their
organizations, and have executed this Lease as of the date set forth below.
Date:
MiraCosta Community Services and Business
Development
By:
Vicen-esident,
Services
and Administrative
Date:
Date:
CITY OF CARLSBAD
By:
By:
Mayor
City Clerk
APPROVED AS TO FORM
Celia Brewer, City Attorney
By:
Jane M9j!)aldi, Assistant City Attomey
Dated: ^-,?^'//
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EXHIBIT A - PREMISES SITE PLAN AND FLOOR PLAN
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MiraCosta College
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