HomeMy WebLinkAboutBeach Sleep Furniture; 1998-10-15;-
ORlGlNAL
CARLSBAD REDEVELOPMENT AGENCY
LEASE TO
LORRIN MERONOFF - D.B.A. BEACH SLEEP FURNITURE
OF PROPERTY LOCATED AT
2787 STATE STREET
CARLSBAD, CALIFORNIA 92008
2787 State Street Lease Agreement
Final Revisions: 10/9/98
LEASE AGREEMENT
THIS LEASE AGREEMENT, made and entered into this 15th day of October, 1998, by and
between the Carlsbad Redevelopment Agency, hereinafter called “Lessor”, and Lorrin
Meronoff, a sole proprietor, d.b.a. Beach Sleep Furniture, hereinafter called “Lessee”, without
reference to number or gender, for property located at 2787 State Street, Carlsbad, California,
92008 (a.k.a. Bauer Lumber Building).
WITNESETH:
WHEREAS, the Carlsbad Redevelopment Agency is the owner of the real property located at
2787 State Street, Carlsbad, California, 92008 (a.k.a. Bauer Lumber Building); and
WHEREAS, Lessee desires use of said Lessor premises to operate a business (as defined below);
NOW, THEREFORE, it is understood and agreed by and between the parties hereto as follows,
to wit:
TO HAVE AND TO HOLD said leased premises for the term of this lease and upon the
conditions as follows:
1. TERM: The term of the lease shall be for a period of five (5) years commencing on January
1, 1999 and ending on December 31, 2003. Provided tenant has completed the necessary
and required interior improvements and obtained a certificate of occupancy prior to the
commencement date stated herein, Lessee shall be entitled to conduct business prior to
commencement date. Upon the expiration of this lease, the Lessee shall have the option to
extend the term for additional one (1) year periods at the discretion of the Lessor, upon the
same terms and conditions stated herein, notwithstanding the renegotiation of monthly
lease payments. Lessee must exercise this option in writing at least 120 days prior to the
lease terms expiration.
2. RENT:
(a) As and for the rent, Lessee agrees to pay to Lessor the sum of nine thousand dollars
($9,000.00) per month for the first year. The rental payment shall be abated for the
first five months. On or before June 1,1999, the first payment of $9,000.00 per month
will be paid and all subsequent payments shall be payable in advance on or before
the first day of each and every month during the term of this Agreement.
(b) Rent shall be delivered to the Finance Department of the City of Carlsbad at 1200
Carlsbad Village Drive, Carlsbad, California, 92008. The designated place of
payment and filing may be changed at any tune by Lessor upon ten (10) days
written notice to Lessee. Lessee assumes all risk of loss if payments are made by
mail.
(c) In the event Lessee is delinquent in remitting the rent due in accordance with the
rent provisions of this lease, then the rent not paid when due shall bear interest at
the rate of Ten Per Cent (10%) per annum from the date due until paid. Provided,
however, that the Executive Director of Carlsbad Redevelopment Agency shall have
2787 State Street Lease Agreement
Final Revisions: 10/9/98
2
the right to waive for good cause any interest payment upon written application of
Lessee for any such delinquency period.
(d) Lessee agrees to pay annual increases in monthly lease payments as set forth in
Exhibit “A” attached hereto and by this reference made a part hereof.
(e) Lessee agrees to pay a Security Deposit in the amount of one month’s rent or nine
thousand dollars ($9,000.00) to be paid upon execution of this lease agreement,
Lessee shall submit the Security Deposit in the form of a cashier’s check
simultaneously, and or in conjunction with signed lease agreement. Lessor shall not
cash nor deposit said Security Deposit until lease agreement is signed by Lessor,
resulting in the full execution of this agreement. Security Deposit shall be held in an
interest bearing account (at the same rate the City of Carlsbad earns on it’s money)
in which upon expiration of this lease, Lessee shall retain all interest accrued over
said lease term. Lessor shall not be required to keep the Security Deposit separate
from it’s general accounts.
If Lessee fails to pay Rent, or otherwise defaults under this lease, Lessor may use,
apply or retain all or any portion of said Security Deposit for the payment of any
amount due Lessor or to reimburse or compensate Lessor for any liability, expense,
loss or damage which Lessor may suffer or incur by reason thereof. If Lessor uses or
applies all or any portion of said Security Deposit, Lessee shall within ten (10) days
after written request therefor deposit monies with Lessor sufficient to restore said
Security Deposit to the full amount required by this Lease. If the Base Rent increases
during the term of this Lease, Lessee shall, upon written request from Lessor,
deposit additional moneys with Lessor so that the total amount of the Security
Deposit shall at all time bear the same proportion to the increased Base Rent as
initial Security Deposit bore to the initial Base ”
ent.
3. USE: Lessee agrees that the leased premises shall, bJ used only and exclusively for retail
furniture sales and for no other purposes whatsoever without the written consent of Lessor.
4. EARLY TERMINATION: Lessee or Lessor shall habe a right to terminate lease by first
giving ninety (90) days written notice to the othei party and payment of twenty-five
thousand dollars ($25,000.00) for penalty of early termination. In the event either party
exercises the option of early termination, the party, seeking termination shall pay fifty
percent (50%) or twelve thousand five hundred dol/lars ($12,500.00) at the time written
notification of lease termination is given and shall pai the remaining fifty percent (50%) of
the penalty payment or twelve thousand five hundred dollars ($12,500.00) upon expiration
of said 90 day notification period. Any remaining monies via security deposit shall be
applied toward and deducted from the second penalty payment of twelve thousand five
hundred dollars ($12,500.00). Lessor may exercise it’s right of early termination for the sole
purpose of proceeding with it’s master plan for redevelopment.
5. IMPROVEMENTS: As consideration for the rent abatement in months one (1) through five
(5) of the first year, Lessee agrees to obtain required City of Carlsbad permits and licenses
and complete construction of the following tenant improvements prior to occupancy:
(a) Mezzanine shall be removed/demolished;
(b) Restrooms shall be modified to comply with the latest disabled access requirements;
2787 State Street Lease Agreement
Final Revisions: 10/9/98
(c) Exit door on the south side of the building shall be moved further from the front
(State Street) exit door, or an additional exit door shall be added at least 70 feet from
either door, to meet current building code requirements for exits; and
(d) The north property line wall shall be modified to meet the requirements of fire
resistive exterior walls. This includes modifying the exterior finish, or treating the
interior finish to achieve a one hour fire resistive equivalency; adding a parapet
finished with a non-combustible surface, or treating the roof framing in accordance
with allowable building code exceptions.
Lessee may, at its own expense, make additional interior alterations or changes in the
leased premises or cause to be built, made or installed thereon any structures, machines,
appliances, utilities, signs or other improvements necessary or desirable for the use of said
premises and may alter and repair any such structures, machines or other improvements;
provided, however, that no alterations and changes shall be made and no structures,
machines, appliances, utilities, signs or other improvements shall be made, built or
installed, and no major repairs thereto shall be made except upon obtaining all necessary
prior approvals from Lessor and proper permits from the City of Carlsbad. Lessor
acknowledges that in addition to the requirements in (a) through (d) of this Paragraph 5,
Lessee intends to install “show windows” on the east and southern walls of the building,
subject to prior approval of Lessor. Such installation will be solely at the expense of Lessee
and the work performed with proper City of Carlsbad permits. Lessee will be permitted to
paint the exterior of the premises in accordance with standards acceptable to Lessor and
with prior approval of Lessor.
Lessee shall be responsible for manufacturing and installation of signage in accordance
with the signage regulations set forth within the Carlsbad Village Redevelopment Master
Plan and Design Manual. Lessee further agrees that no banners, pennants, flags, eye-
catching spinners or other advertising devices, nor any temporary signs shall be permitted
to be flown, installed, placed, or erected on the premises except in accordance with the City
of Carlsbad Village Redevelopment Master Plan and Design Manual.
6. OWNERSHIP; REMOVAL; SURRENDER/RESTORATION:
(a) Ownership. Subject to Lessor’s right to require removal or elect ownership as
hereafter provided, all alterations and utility installations made by Lessee shall be
the property of the Lessee, but considered a part of the premises. Lessor may, at any
time, elect in writing to be the owner of all or any specified part of the Lessee owned
alterations and utility installations. Unless otherwise instructed per Paragraph 6(b)
hereof, all Lessee owned alterations and utility installations shall, at the expiration
or termination of this Lease, become the property of Lessor and be surrendered by
Lessee with the premises.
(b) Removal. By delivery to Lessee of written notice from Lessor not later than sixty
(60) days prior to the end of the term of this Lease, Lessor may require that any or all
Lessee owned alterations or utility installations be removed by the expiration or
terrnination of this Lease. Lessor may require the removal at any time of all or any
part of any Lessee owned alterations or utility installations made without the
required consent.
(c) Surrender/Restoration. Lessee shall surrender the premises by the expiration date
or any earlier termination date, with all of the improvements, parts and surfaces
thereof broom clean and free of debris, and in good operating order, condition and
state of repair, ordinary wear and tear expected. “Ordinary wear and tear” shall not
2787 State Street Lease Agreement
Final Revisions: W/9/98
-
4
include any damage or deterioration that would have been prevented by good
maintenance practice. Lessee shall repair any damage occasioned by the
installation, maintenance or removal of trade fixtures, Lessee owned alterations
and/or utility installations, furnishings, and equipment installed by or for Lessee
and the removal, replacement, or remediation or any soil, material or groundwater
contaminated with hazardous substance (as defined in Paragraph 23) by Lessee.
Trade fixtures shall remain the property of Lessee and shall be removed by Lessee.
The failure by Lessee to timely vacate the premises pursuant to this Paragraph 6 (c)
without the express written consent of Lessor shall constitute a holdover under the
provisions of Paragraph 32 below.
7. PARKING: Lessee understands there is no private parking available on the subject
property. Lessee further understands that execution of this lease agreement in no way
constitutes the granting of exclusive use of public parking adjacent to the property. Lessor
shall be responsible for processing the necessary approvals to provide for a “no parking”
zone to the rear of the building to designate a loading zone in front of the existing delivery
door.
8. RIGHT TO ENTER PROPERTY: Upon execution of this lease agreement, Lessee shall be
granted access to the premises to initiate, construct and complete the tenant/building
improvements as outlined in the Improvements Paragraph 5 of this lease. All tenant
improvements shall be complete prior to occupancy of the building.
9. BROKER’S COMMISSION: Any and all broker’s commissions shall be paid by Lessee.
10. WAIVER OF RELOCATION BENEFITS: Lessee understands this lease agreement is
entered into for a specified period of time in order to provide interim use of the property,
until such time as the Lessor chooses to develop the property in accordance with the
Carlsbad Village Redevelopment Master Plan Lessee therefore agrees to waive any and all
relocation benefits defined in the California Relocation Assistance Law (Government Code,
Section 7260, et. seq.).
11. LIENS: Lessee agrees that it will atall times hold Lessor Free and harmless and indemnify
it against all claims for labor or materials in connection with improvements, repairs, or
alterations on the lease premises, including the costs of defending against such claims, and
reasonable attorney’s fees incurred therein.
In the event that any lien or levy of any nature whatsoever is filed against the lease
premises or the leasehold interests of the Lessee there, the Lessee shall, upon written
request of Lessor, deposit with Lessor a bond conditioned for the payment in full of all
claims upon which said lien or levy has been filed. Such bond shall be acknowledged by
Lessee as principal and by a corporation, licensed by the Insurance Commissioner of the
State of California to transact the business of a fidelity and surety insurance company, as
surety. Lessor shall have the right to declare this lease in default in the event the bond
required by this paragraph has not been deposited with the Lessor within ten (10) days
after written request has been delivered to Lessee.
12. LEASE ENCUMBRANCE: Lessee understands and agrees that it cannot encumber the
lease, leasehold estate and the improvements thereon by a deed of trust, mortgage or other
security instrument. If any deed of trust, mortgage or other security instrument that
2787 State Street Lease Agreement
Final Revisions: 10/9/98
5
encumbers the lease, leasehold estate and the improvements thereon is entered into by
Lessee, Lessor shall have the right to declare this lease in default.
13. ASSIGNMENT-SUBLEASE: Lessee shall not assign or transfer the whole or any part of
this lease or any interest therein, nor sublease the whole or any part of the leased premises,
nor contract for the management or operation of the whole or any part of the leased
premises, nor permit the occupancy of any part thereof by any other person or business
entity, nor permit transfer of the lease by merger, consolidation or dissolution, without the
consent of Lessor, first had and obtained in each instance.
14. DEFAULT: It is mutually understood and agreed that if any default be made in the
payment of rental herein provided or in the performance of the covenants, conditions, or
agreements herein (any covenant or agreement shall be construed and considered as a
condition), or should Lessee fail to fulfil1 in any manner the uses and purposes for which
said premises are leased as above stated, and such default shall not be cured within or ten
(10) days after written notice thereof if default is in the performance of the use obligation
provisions pursuant to Paragraph 16 of this lease, or thirty (30) days after written notice
thereof if default is in the payment of rent, or in the performance of any other covenant,
condition and agreements (any covenant or agreement shall be construed and considered as
a condition), Lessor shall have the right to immediately terminate this lease; and that in the
event of such termination, Lessee shall have no further rights hereunder, the Lessee shall
thereupon forthwith remove all personal property from said premises and shall have no
further right to claim thereto, and Lessor shall immediately thereupon, without recourse to
the courts, have the right to reenter and take possession of the leased premises. Lessor shall
further have all other rights and remedies as provided by law, including without limitation
the right to recover damages from Lessee in the amount necessary to compensate the Lessor
for all the detriment proximately caused by the Lessee’s failure to perform his obligations
under the lease or which in the ordinary course of things would be likely to result
therefrom.
In the event of the termination of this lease pursuant to the provisions of this paragraph,
Lessor shall have any rights to which it would be entitled in the event of the expiration or
sooner termination of this lease.
15. BANKRUPTCY: In the event Lessee becomes insolvent, makes an assignment for the
benefit of creditors, files a petition in bankruptcy or becomes the subject of a bankruptcy
proceeding, reorganization, arrangement, insolvency, receivership, liquidation, or
dissolution proceedings, or in the event of any judicial sale of Lessee’s interest under this
lease, Lessor shall have the right to declare this lease in default.
-6. USE OBLIGATION: Lessee shall actively and continuously use and operate the premises
for the limited particular exclusive use as expressly provided for in the Use Paragraph 3 of
this lease, except for failure to so use caused by acts of God. Lessee, however, shall not and
is expressly prohibited from using the premises for any other purpose or use whatsoever,
whether it is purported to be in addition to or in lieu of the particular exclusive use
expressed in said Use Paragraph 3.
17. MAINTENANCE AND REPAIR: As part of the consideration for the leasing thereof,
Lessee agrees to assume full responsibility for the interior operation, maintenance,
including painting, and repair of the premises, throughout the term and without expense to
2787 State Street Lease Agreement
Final Revisions: 10/9/98
6
A
the Lessor. Lessee will perform all interior maintenance, repairs and replacements,
including glass, necessary to maintain and preserve the premises in a good, safe, healthy
and sanitary condition satisfactory to Lessor and in compliance with all applicable laws.
Lessee further agrees to provide approved containers for trash and garbage and to keep
premises free and clear of rubbish and litter, or any other fire hazards. Lessor shall be
responsible for all exterior maintenance, including roof repairs. Notwithstanding, Lessor
shall not be required at any time to maintain or to make any improvements or repairs
whatsoever on or for the benefit of the leased premises.
For the purpose of keeping the premises in a good, safe, healthy and sanitary condition,
Lessor shall have the right but not the duty, to enter, view, inspect, determine the condition
of and protect its interests in, the premises. If inspection discloses that the premises are not
in the condition described, Lessee must perform the necessary maintenance work within ten
(10) days after written notice from Lessor. Further, if at any time during the term of the
lease for the premises Lessor determines that the premises are not in the condition
described, Lessor may require Lessee to file and pay for a faithful performance bond, to
assure prompt correction without additional notice. The amount of this bond shall be
adequate, in Lessor’s opinion, to correct the unsatisfactory condition. The rights reserved in
this section shall not create any obligations or increase any obligations for Lessor elsewhere
in this Lease.
18. TAXES AND UTILITIES: Lessee shall not be responsible for payment of any property
taxes associated with the premises. Property taxes, if any, shall be paid solely by the
Lessor. However, this lease may result in a taxable possessory interest. In an amount not to
exceed two thousand dollars ($2000) per year, Lessee agrees to and shall pay before
delinquency all possessory taxes and assessments of any kind assessed or levied upon
Lessee or the leased premises by reason of this lease or of any buildings, machines, or other
improvements of any nature whatsoever erected, installed or maintained by Lessee or by
reason of the business or other activities of Lessee upon or in connection with the leased
premises. -Lessor agrees to pay all possessory taxes and assessments as set forth above for
any remaining portion of the taxes and assessments which exceed two thousand dollars
($2,000) per year. Lessee shall also pay any fees imposed by law for licenses or permits for
any business or activities of Lessee upon the leased premises or under this lease, and shall
pay before delinquency any and all charges for utilities at or on the leased premises. If
Lessee fails to pay said possessory taxes, Lessor may declare default in accordance with
Paragraph 14. Lessee shall be responsible for payment of all utilities, including but not
limited to trash, water, gas and electricity.
19. CONFORMANCE WITH RULES AND REGULATIONS: Lessee agrees that in all
activities on or in connection with the leased premises and in all uses thereof, including the
making of any alterations or changes and the installation of any machines or other
improvements, it will abide by and conform to all ordinances, rules and regulations
prescribed by the City of Carlsbad, including, but not limited to, sign regulations and
requirements for outdoor display set forth within the Carlsbad Village Redevelopment
Master Plan and Design Manual, and any applicable laws of the State of California and
Federal Government, as any of the same now exist or may hereafter be adopted or
amended.
20. NON-DISCRIMINATION: Lessee agrees not to discriminate against any person or class
of persons by reason of sex, color, race, religion, or national origin. If the use provided for
2787 State Street Lease Agreement
Final Revisions: 10/9/98
-
21.
22.
23.
24.
25.
26.
7
in this lease allows the Lessee to offer accommodations or services to the public, such
accommodations or services shall be offered by the Lessee to the public on fair and
reasonable terms.
PARTIAL INVALIDITY: If any term, covenant, condition, or provision of this lease is held
by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of
the provisions hereof shall remain in full force and effect and shall in no way be affected,
impaired, or invalidated thereby.
HOLD HARMLESS: Lessee shall defend, indemnify, and hold harmless Lessor, its officers
and employees against causes of action, liability, damage, and expense of any kind,
including reasonable attorney’s fees, or injury to or death of any person or persons,
including without limitation Lessee, its employees, and invitees resulting directly or
indirectly from granting and performance of this lease or arising from the use and operation
of the leased premises or any defect in any part thereof.
HAZARDOUS SUBSTANCES: The term “Hazardous Substance” as used in this Lease
shall mean any product, substance, or waste whose presence, use, manufacture, disposal,
transportation, or release, either by itself or in combination with other materials expected to
be on the premises, is either: (i) potentially injurious to the public health, safety or welfare,
the environment or the premises, (ii) regulated or monitored by any government authority,
or (iii) a basis for potential liability of Lessor to any governmental agency or third party
under any applicable statute or common law theory. Lessee shall not cause or permit any
Hazardous Substance to be spilled or released in, on, under, or about the premises
(including through the plumbing or sanitary sewer system) and shall promptly, at Lessee’s
expense, take all investigatory and/or remedial action reasonably recommended, whether
or not formally ordered or recluired, for the cleanup of any contamination of, and for the
maintenance, security and/or monitoring of the premises or neighboring properties, that
was caused or materially contributed to by Lessee, or pertaining to or involving any
Hazardous Substance brought onto the premises during the term of this Lease, by or for
Lessee, or any third party.
SUCCESSORS IN INTEREST: Unless otherwise provided in this lease, the terms,
covenants and conditions herein shall apply to and bind the heirs, successors, executors,
administrators, and assigns of all the parties hereto, all of whom shall be jointly and
severally liable hereunder,
EASEMENTS: This lease and all rights given hereunder shall be subject to all easements
and rights-of-way now existing or heretofore granted or reserved by Lessor in, to or over
the leased premises for any purpose whatsoever, and shall be subject to such rights-of-way
for reasonable access, sewers, pipelines, conduits and such telephone, cable television,
telegraph, light, heat or power lines as may from time to time be determined by Lessor to be
necessary.
Lessor agrees that such easements and rights-of-way shall be so located and installed as to
produce a minimum amount of interference to the business of Lessee.
INSURANCE: Lessee shall maintain insurance acceptable to Lessor in full force and effect
throughout the term of this lease. The policies for said insurance shall, as a minimum,
provide the following forms of coverage:
2787 State Street Lease Agreement
Final Revisions: 10/9/98
8
(a) Comprehensive General Liability - (covering premises and operations) in the
amount of not less than One Million Dollars ($l,OOO,OOO) combined single limit. This
policy shall cover any injury or damage, including death, suffered by any party, for
any act, committed by anyone, including Lessor.
(b) Property Insurance - Lessee shall obtain and maintain insurance coverage on all of
Lessee’s personal property, trade fixtures, and Lessee owned alterations and utility
installations. Such insurance shall be full replacement cost coverage with a
deductible of not to exceed $l,OOO.OO per occurrence. The proceeds from any such
insurance shall be used by Lessee for the replacement of personal property, trade
fixtures and Lessee owned alterations and utility installations.
Lessor will be responsible for providing coverage for the structure itself, exclusive of
the items required to be covered by Lessee’s insurance policy.
(c) Business Interruption - Lessee shall obtain and maintain loss of income and extra
expense insurance in amounts as will reimburse Lessee for direct or indirect loss of
earnings attributable to all perils commonly insured against by prudent lessees in
the business of Lessee or attributable to prevention of access to the premises as a
result of such perils.
(d) Evidence of Insurance - Certificates and endorsements in a form acceptable to
Lessor evidencing the existence of the necessary insurance policies shall be kept on
file with Lessor during the entire term of this lease. All insurance policies will name
Lessor as an additional insured, protect Lessor against any legal costs in defending
claims and will not terminate without written notice to Lessor. All insurance
companies providing coverage pursuant to this agreement must meet City’s
minimum standards and be licensed to do business in California.
Lessor shall retain the right at any time to review the coverage, form, and amount of the
insurance required hereby. If, in the opinion of the Lessor, the insurance provisions in this
lease do not provide adequate protection for Lessor and/or for members of the public using
the leased premises, Lessor may require Lessee to obtain an insurance sufficient in
coverage, form and amount to provide adequate protection. Lessor’s requirements shall be
reasonable but shall be designed to assure protection from and against the kind and extent
of risk which exist at the time a change in insurance is required.
Lessor shall notify Lessee in writing of changes in the insurance requirements and, if Lessee
does not deposit certificates/endorsements evidencing acceptable insurance policies with
Lessor incorporating such changes within sixty (60) days of receipt of such notice, this lease
shall be in default without further notice to Lessee, and Lessor shall be entitled to all legal
remedies.
The procuring of such required policies of insurance shall not be construed to limit Lessee’s
liability hereunder, nor to fulfil1 the indemnification provisions and requirements of this
lease. Notwithstanding said policies of insurance, Lessee shall be obligated for the full and
total amount of any damage, injury, or loss caused by negligence or neglect connected with
this lease or with the use or occupancy of the leased premises.
2787 State Street Lease Agreement
Final Revisions: 10/9/98
9
Lessee agrees not to use the premises in any manner, even if use is for purposes stated
herein, that will result in the cancellation of any insurance Lessor may have on the premises
or on adjacent premises, or that will cause cancellation of any other insurance coverage for
the premises or adjoining premises. Lessee further agrees not to keep on the premises or
permit to be kept, used, or sold thereon, anything prohibited by any fire or other insurance
policy covering the premises. Lessee shall, at its sole cost and expense, comply with any
and all requirements, in regard to premises, of any insurance organization necessary for
maintaining fire and other insurance coverage at reasonable cost.
27. WARRANTIES-GUARANTEES-COVENANTS: Lessor makes no warranty, guarantee,
covenant, including but not limited to covenants of title and quiet enjoyment, or declaration
of any nature whatsoever concerning the condition of the leased premises, including the
physical condition thereof, or any condition which may affect the leased premises, and it is
agreed that Lessor will not be responsible for any loss, damage or costs which may be
incurred by Lessee by reason of any such condition or conditions.
28. DAMAGE TO OR DESTRUCTION OF PREMISES: In the event of damage to or
destruction by fire, the elements, acts of God, or any other cause, of the improvements
located within the demised premises Lessee shall, within ninety (90) days, commence and
diligently pursue to completion the repair, replacement, or reconstruction of improvements
necessary to permit full use and occupancy of the demised premises for the purposes
required by this lease. Repair, replacement or reconstruction of improvements within the
demised premises shall be accomplished in a manner and according to plans approved by
Lessor; provided, however, Lessee shall not be obligated to repair, reconstruct or replace the
improvements following their destruction in whole or substantial part except to the extent
the loss is covered by insurance required to be carried by Lessee pursuant to Paragraph 26
of this Lease (or would be covered whether or not such required insurance is actually in
effect). If Lessee elects not to restore, repair or reconstruct as herein provided, then the
Lease shall terminate.
29. QUITCLAIM OF LESSEE’S INTEREST UPON TERMINATION: Upon termination of
this lease for any reason, including but not limited to termination because of default by
Lessee, Lessee shall execute, acknowledge and deliver to Lessor within thirty (30) days after
receipt of written demand thereof a good and sufficient deed whereby all right, title and
interest of Lessee in the demised premises is quitclaimed to Lessor. Should Lessee fail or
refuse to deliver the required deed to Lessor, Lessor may prepare and record a notice
reciting the failure of Lessee to execute, acknowledge and deliver such deed and said notice
shall be conclusive evidence of the termination of this lease and of all right of Lessee or
those claiming under Lessee in and to the demised premises.
30. PEACEABLE SURRENDER: Upon the expiration of this lease or sooner termination or
cancellation thereof, as herein provided, Lessee will peaceably surrender said premises to
Lessor in as good condition as said premises were at the date of this lease, ordinary wear
and tear expected. If the Lessee fails to surrender the premises at the expiration of this lease
or the earlier termination or cancellation thereof, Lessee shall defend and indemnify Lessor
from all liability and expense resulting from the delay or failure to surrender, including,
without limitation, any succeeding Lessee’s claims based on Lessee’s failure to surrender.
2787 State Street Lease Agreement
Final Revisions: 10/9/98
10
31. WAIVER: Any waiver by Lessor of any breach by Lessee of any one or more of the
covenants, conditions, or agreements of this lease shall not be nor be construed to be a
waiver of any subsequent or other breach of the same or any other covenant, condition or
agreement of this lease, nor shall any failure on the part of Lessor to require or exact full
and complete compliance by Lessee with any of the covenants, conditions, or agreements of
this lease be construed as in any manner changing the terms hereof or to prevent Lessor
from enforcing the full provisions hereof. The subsequent acceptance of rent hereunder by
Lessor shall not be deemed to be waiver of any preceding breach by Lessee of any term,
covenant, or condition of this lease, other than the failure of Lessee to pay the particular
rental so accepted, regardless of Lessor’s knowledge of such preceding breach at the time of
acceptance of such rent.
32. NO RIGHT TO HOLD OVER: Lessee has no right to retain possession of the premises or
any part thereof beyond the expiration or termination of this lease. In the event that Lessee
holds over, then the Base Rent shall be increased to one hundred fifty percent (150%) of the
Base Rent applicable during the month immediately preceding the expiration or
termination. Nothing contained herein shall be construed as consent by Lessor to any
holding over by Lessee.
33. ACCEPTANCE OF PREMISES:
Lessor shall warrant the following upon occupancy:
(a) Structural integrity of the building;
(b) Roof of premises is free of any leaks;
(c) Electrical is in good working order; and
(d) Plumbing is in good working order.
Lessee shall be entitled to have independent tests performed prior to execution of this lease
to satisfy Lessee that the premises are in the condition warranted.
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 further acknowledges that premises are in the
condition called for by this Lease, and that Lessee does not hold Lessor responsible for any
defects in premises.
34. QUIET POSSESSION: Lessee will at all times during the terms of this Lease occupy the
premises quietly and not commit any act, waste or nuisance which disturbs the quiet
enjoyment of the property for the Lessor, public, any neighbor or other tenant of Lessor.
35. ENTIRE UNDERSTANDING: This lease contains the entire and only understanding and
agreement of the parties, and Lessee, by accepting the same, acknowledges that there is no
other written or oral understanding or agreement between the parties with respect to the
demised premises and that this lease supersedes all prior negotiations, discussions,
obligations and rights, of the parties hereto. No waiver, modification, amendment or
alteration of this lease shall be valid unless it is expressly in writing and signed by
authorized persons of the parties hereto. Each of the parties to this lease acknowledges that
no other party, nor any agent or attorney of any other party, has made any promise,
representations, waiver or warranty whatsoever, expressed or implied, which is not
expressly contained in writing in this lease, and each party further acknowledges that it has
2787 State Street Lease Agreement
Final Revisions: lO/ 9/ 98
h
11
not executed this lease in reliance upon any collateral promise, representation, waiver or
warranty, or in reliance upon any belief as to any fact not expressly recited in this lease.
36. TIME IS OF THE ESSENCE: Time is of the essence of each and all of the terms and
provisions of this lease and this lease shall insure to the benefit of and be binding upon the
parties hereto and any successors of Lessee as fully and to the same extent as though
specifically mentioned in each instance, and all covenants, stipulations and agreements in
this lease shall extend to and bind any assigns and sublessee of Lessee.
37. NOTICES: Notices given or to be given by Lessor or Lessee to the other may be personally
serviced upon Lessor or Lessee or any person hereafter authorized by either in writing to
receive such notice or may be served by certified letter addressed to the appropriate address
hereinafter set forth or to such other address as Lessor and Lessee may hereafter designate
by written notice. If served by certified mail, forty-eight (48) hours after deposit in the U.S.
Mail, service will be considered completed and binding on the party served.
TO LESSEE
Lorrin Meronoff
Beach Sleep Furniture
1011 Grand Avenue
San Diego, California 92109
LESSEE:
WaRIN MERONOFF
D.B.A. BEACH SLEEP FURNITURE
DATE: 60 / I
APPROVED AS TO FORM AND LEGALITY:
RONALD R. BALL
CITY ATTORNEY
DATE: /oe 2239D
TO LESSOR
Carlsbad Redevelopment Agency
Housing & Redevelopment Director
2965 Roosevelt Street, Suite B
Carlsbad, California 92008
CARLSBAD REDEVELOPMENT
AGENCY
DATE: /o /a3 IS8 I
Signatures of Lessee and Lessor must be
notarized.
2787 State Street Lease Agreement
Final Revisions: 10/9/98
CALIFORNIA ALL-PURPOSE CERTIFICATE OF ACKNOWLEDGMENT
State of &$L&J] IP
county of &/)g$j) 1/
lb%4 before me, I Name, tile - e.g., JO#UI Doe, Notary Public
personally appeared 3’ h&h vdw dc;- - Name(s) of Signers(s)
CI Personally known to me OR
m Proved to me on the basis of satisfactory evidence
to be the person 9 whose namep) is/ e subscribed to the within instrument and acknowledged to
me that he/ s)reP /t Y y executed the same in his&Wti~ authorized capacity@@, and that by his/
r/ YF acted,
ir signaturep) on the instrument the persony), or the entity upon behalf of which the person@
executed the instrument. n
OPTIONAL
The data below is not required by law, however it may prove valuable to persons
relying on the document and couklpreventfraudulent reattachment of this form.
SIGNATURE AUTHORITY OF SIGNER:
g INDIvlDuAL
0 CORPORATE OFFICER(S)
Title(s)
~PARTNER
Q LIMITED
Ll GENERAL
Cl ATTORNEY-IN-FACT
CI TRUSTEE(S)
Ci GUARDIAN/CONSERVATOR
!v &HER: ~8+.$&%-
NAME(S) OF PERSON(S) OR ENTITY(IES) SIGNER IS REPRESENTING:
DESCRIPTION OF ATTACHED DOCUMENT
TII-LE OR TYPE OF DOCUMENT
BER OF PAGES
t .o 4 4-4,s
DATE OF DOCUMENT
SIGNER(S) OTHER THAN NAMED ABOVE:
-.
City of Ca,rlsbad
October 23,1998
Mr. Lorrin Meronoff
Beach Sleep Furniture
1011 Grand Avenue
San Diego, CA 92109
RE: LEASE AGREEMENT FOR PROPERTY AT 2787 STATE STREET, CARLSBAD
Enclosed for your records are copies of the Carlsbad Housing and Red.evelopment
Commission adopted Resolution No. 301 and agenda bill which went before the
Commission on October 13,1998.
Also enclosed is a copy of the fully executed lease agreement for the property located
at 2787 State Street, and commonly referred to as the Bauer Lumber building.
If you have any questions regarding the lease of this building, please call Ms. Debbie
Fountain, Housing and Redevelopment Director, at (760) 434-2810.
KATHLEEN D. SHOUP
Sr. Office Specialist
1200 Carlsbad Village Drive - Carlsbad, CA 92008-1989 - (760) 434-2808 @