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HomeMy WebLinkAbout1977-08-16; City Council; 5170; State & Grand proposed acquisition report--. . -. .---.,- % 1 ._I *- Initial: I ---- 51 76 Dept. Hd. City Atty f d, *e AGENDA BILL NO. DATE : August 16, 1977 DEPARTMENT : CITY MANAGER City Mgr. z SUBJECT: REPORT ON PROPOSED ACQUISITION - STATE AND GRAND STATEMENT OF - THE MATTER An oral report will be presented at this meeting. If "hard" data is available prior to the meeting, it will be hand delivered for review in accordance with normal distribution procedures. Council action 8-16-77 The Council accepted staff recommendation as set forth in plemorandum dated Auqust 15, 1977 addressed to. the Playor and City Council. 4 FORM PLANNING 73 ,. a. <--- * n MEMORANDUM August 16, 1977. TO: ' Honorable Mayor Robert C. Frazee and City Council Members VIA : William C. Baldwin, Acting City Manager FROM: Jack Henthorn, Redevelopment Coordinator SUBJECT : Proposed Property Acquisition At State Street Anc .I Grand Avenue In accordance with Council direction of August 2, 19?7, staff has obtained a preliminary appraisal on the subject property. (See attached memorandum dated July 22, 1977). The preliminaq appraisal indicates that the valuation range of the 15,000 squz foot area is $110,000 to $112,000 or $7.33 to $7.67 per square foot. A market approach was utilize6 in establishing the preliminary valuation with 14 comparable sales being utilized, The preliminary valuation is based upon raw land with no interim improvement value assigned. Mr. Johnson indicates that interhi improvement valuation would result in a total valuation apprcs-c $118,000. A capitalization approach was not utilized due to the low least return which is not capable of supporting current market valuai Mr. Johnson further indicates that the property has little spec lative value in that it has appreciated to the point wnere onp high grade uses could support the raw land valuation. Given the current environment, the ability to attract this type of use is somewhat questionable. This situation is not unusual for older central business districts and is indicative of the problems encountered in attempting to induce private investmen' RELOCATION As you may be aware the State of California Department of Hous and Community Development adopted relocation and acquisition guidelines under the provisions of Section 41135 of the Health and Safety Code and Division 7, Section 7260 of the Government Code.. These guidelines set forth public agency responsibiliti relative to property acquisition and relocation of displaced o and tenants. .. * * 0 *. Staff has been in contact with the City of San Diego's Central which could result from a negotiated acquisition of the site. Mr, Berend of the aforementioned office indicated that his best estimate of relocation costs was $10,000 to $15,000. It should be noted that the provisions of the Health and Safety and Government Codes are applicable to all public acquisitions irrespective of acquiring agency or purpose of the acquisitions .e Relocation Office to determine the approximate amount of liabili LEASES . ' -- The property is currently under a master lease held by a third party. This individual in turn leases to the users of the site The leases are due to expire in 1980. Mr. Minnick, the owner's representative,has indicated that the leaseholder 1s willing to consider the sale of the master lease for approximately $5,000. Based upon the existing gross return on the master lease, it ma be advantageous to purchase the lease as a method of offsetting some of the associated relocation costs. This issue, however, requires further analysis to determine whether net revenues (after management and maintenance) are sufficient to make purcl. worthwhile. RECOMMENDATION It is recommended that the Council: 1) Authorize staff to make an offer on the subject property a a cost not to exceed $118,000, contingent on P.3:anning Corn finding of General Plan conformity. Direct staff to analyze the advantages of acquiring the ex master lease on the subject property. Direct staff to prepare for Council adoption, acquisition relocation guidelines in conformance with applicable State statutes and to return subject guidelines at the next regu Council. meeting. Direct staff to contact the City of San Diego's Central Relocation Office and the Cal Trans Relocation Section relative to their ability to provide on a contractual basj a technical relocation function. 2) . 3) 4) * JIf: S - e. a .J . . MEMORANDUM July 22, 1977 TO: , I FROM: Jack Henthorn, Redevelopment Coordinator SUBJECT: Corner of Grand and State Paul Bussey, City Manager F . The subject site contains approximately 15,000 sqcare feet of land area plus improvements housing a radiator shop, sandwich shop and contractor's office. shop, all improvements appear to be in standard condition for the area. (See attached locator). The property is offerel! through Minnich Investment Properties. Thrt asking price for the total area is $150,003; however, ?Ir. Minnich indicates that the price is flexible. The pror,erty is currently going through an offer/counter offer process; the details of which were not divulged. In an effort to convert assessed value to market value, I contac Mr. Lee C, Johnson, M.A.I. Appraiser, who recommended multipliel Of six, Utilizing this approach, the property is somewhat over- priced. However, for some reason, improvement values are not reflected for three of the five improved parcels (See Comp. She< which could result in the price.approaching that being sought. A couple of options are open to us at this time. Option 1 - Make an offer contingent upon appraisal' of between' $100,000 and $150,000 for the entire site, thereby controlling all parcels between Grand and Cedar on State, except parcel.1. Option 2 - Contact Minnich identifying the City as' interested in Parcel 6, the radiator shop site, at-a value $42,500 continqent upon appraisal, With the exception of the radiato Option 3 - Do nothing. Option three is the best "play safe1' option but accomplishes the least. Option one has the best potential. However, there are two rem tenants which must be contended with. The City could lease thc property back to the tenants; sell it; as "surplus" inunediately; . * .. . e-. . Page 2 July 22, 1977 let the occupied property inflate, then sell it as surplus; hold it until the project area is formed and sell it tc the agency at inflated price; evict the tenants, demolish the structures and build more parking area or sell cleared land through the agency. Option two has good potential but may not meet the seller's needs. Recommendation Pursue option two until outcome is known, then consider option one if the property is still. available.. Please advise. .. t JH: s . .. 0 .. ,. I. ,. PARCEL NUMBER ASSESSED VALUE SIZE USE 2037294-02 250'3 -. 203-294-03 2500 ::,":}% str .. 203-294-04 ' ' 2500 ,2500 Of 203-294-05 ..> 2500 ' 2500 Vac 6250 Plus 500 Imps: 5000 Rad Sho e, .. .. ... 203-294- 06 ... ... TOTAL PARCELS - 5 TOTAL'SQUARE FEET - 15,000 TOTAL NUMBER USES - 3 TOTAL DEVELOPED LOTS - 4 TOTAL ASSESSED VALUE - $16,750 X 6 .. .. .. - .. . . * ESTIMATED bIAFXET VALUE $100,500* .- *Does not include improvement value on 203-294-02, 203-294-03 a 203-294-04. . ' .- 4. .. '. 1 . You can avoid the long lines at maiiing your tax payments. NO WA G PROBLEMS. TION HASSLE. NO ENERGY USE. hst remember to mail your payments eariy enough to insure that they are postmarked before the delinquent dates. Late payments are expensive. bast year 34, 84 instailments were paid Bate. Those taxpayers 'qaa xo pay ?3330,woi PW oeranquenr penarrres ana COSTS. If you want your tax bill sent to a different address from that shown od the bill, please change it on the dace of the stub you return wit% your fs'rst payment, and we'll change (PUP records. However, id you have a 81srneowner's exemption, we must mail that tax bill to the address of your pioperty.. The tax collector cannot change the name of the owner on your taw records. OnBy the assessor can do that. Please co%pt~t the County Assessor's office (236-3777) about any dis- crepancies in owner name. TY T 3 &" Q3 paving your taxes, but, if you have any questions about exemptions or he Assessor's Bull market value appraisal, call the County Assessor's office at one of the numbers The people at QUl informathkl nLembW (%36-3%21) Will be happy %O a!lSW@g w/v EBE RAlVS EXEMPT 1 MS .................. 236-3072 NAb EXEMPB18NS .... ..................... 236-3133 FITlON ........................... .236-3771 -over- County of San Diego Board of Supervisors Dear Taxpayer: The Board of Supervisors, as your Countywide elected representatives, is well aware of the increasing property tax burden faced by you over the past several years. As one means of tax relief, the Board has adopted Budget Guidelines which will assure the provision of essential County services at the lowest possible cost. The result of the Board's efforts has been to cut the County's property tax rate by 87 cents over the past three years: In 1975-76 the County tax rate was reduced by seven cents (from $2.69 to $2.62). In 1976-77 the County tax rate was reduced by 34 cents, a $19 million savings to the taxpayers (from $2.62 to $2.28). @ In 1977-78 the County tax rate was cut by an additional 46 cents, the largest cut in 37 years (from $2.282 to $1.825). As noted in the chart on the reverse, the County will levy 4.8 million less tax dollars than in the prior year: As your enclosed 1977-78 tax bill shows, the total amount covers all local governmental agencies - not just County government. The other agencies include incorporated cities, school districts and special districts. These agencies make independent decisions on their tax rates and those decisions impact your tax bill significantly. So, if you have any questions concerning a tax rate of an agency, please contact that agency directly. State law requires the County Tax Collector to collect all of the property taxes and then distribute them in the proper proportion to the various agencies. It is important for you to know that the County of San Diego receives only 20 percent of each dollar collected. The other 80 percent is collected for school districts (61 percent), the incorporated cities (1 1 percent), and special districts (8 percent). Your Board of Supervisors will continue to be mindful of your tax dollars insofar as the County's share is concerned so that you get the essential services you require for the least amount of expenditure. Board of Supervisors San Diego County fik eZIw- Jim Bates, Chairman &@AJ '7;;;;1H cille V. Moore, Vice Chairwoman R ger edge ck &T2W Sd Xl c. ,p om rc) m”z- gg I> pj $01 s? bX n< $$ g sg scr CnNYCIS: P, 4F: Y r NU* UIP u r- r r.mQ Y OF: O goma 0 P(D - r-Y M 01c n r- P, Pn 0 rC (D Y r- ID P, mrom ’ F: P*- tDF ul Y h) OY P OD P *cn A - r- a r(D 03 a+ -, Ql P.2 F z 0 m m 9 5 a@ c G uL& &cw T-k, ---. 1200 ELM AVENUE TELEPH( CARLSBAD, CALIFORNIA 92008 (714) 729 ditp of Carls'bab October 25, 1977 Mr. Fred E* Graf, President Public Service Oil Co., Ltd. 2725 Euclid Avenue San Diego, Calif. 92114 Reference: Offer to purchase Master Lease and Improvements on State and Grand Property Dear Mr. Graf: At its meeting of October 18, 1977 the City Council of the Cit of Carlsbad unanimously adopted Resolution No. 5240, authorizi the purchase of the Master Lease and Improvements on Lots 1-6 inclusive in Block J according to map no. 535 recorded in San Diego County on May 2, 1888. As the City Manager's designee I am hereby making the followir offer for the subject lease and improvements: 1. The City of Carlsbad will pay directly Public Service Oil Ltd., Mr. Fred Eo Graf, President, $3,900 for the master least subject property covering the period November I, 1977 through December 31, 1979. In return, Public Service Oil Co., Ltd., : officers, heirs and assigns will waive all rights, benefits ai privileges accruing from said lease. 2, The City of Carlsbad will pay to Public Service Oil Co., 1 Mr. Fred E. Graf, President, $1,000 for all improvements loca upon subject property. Public Service Oil Co., Ltd. shall ex the bill of sale for said improvements and shall waive all ri benefits, and privileges for, and on behalf, of it's officers heirs and assigns. 3. Public Service Oil Co., Ltd., Mr. Fred E. Graf, President agrees to pay the tax proration for the period July I, 1977 t Novemp pT-$- 19 7 7 -SF %% 1- -6 A%/, For the purpose of consumating this transaction, the City of Carlsbad recognizes Mr. Dave Minnich as broker in this trans- action, working without fee as a courtesy to both parties. -2- If you find this offer acceptable, please countersign this let in the space provided below. Upon receipt of the countersign€ letter, arrangements will be made to deliver a check payable t you and to provide for the execution of all necessary document prior to November 1, 1977. Very truly yours, ACCEPTED BY L -- I_ ~ __ - F Public Service Oil Co,, Ltd. 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PJ 3 m m r; 0-3 - O~-J-i-W-l;I cm x ar 2'3-CQVJ ? -JFl%J3oW- art4 P-4 -Jc--lnv3 rn-dB-3 V. ZZZZ vmmr 4- .nuuqc I.... J=P&.Ui-L Q' 5 t-.l -.I tJ L-%+- 7J 0 -d (SI Lnhl -L gs’s’ignmen t GENERAL pertaining thereto covering all land and improvements located upon the followini described parcels within the corporate limits of the City of Carlsbad, Californ: Lots 1 thru 6 inclusive of Block J of Town of Carlsbad, Amended, also kno~ as County of San Diego Assessor’s Parcel Numbers 203-294-02 thru 06 inclusive. .............................................................. TITLE INSURANCE AND TRUST ATICOR COMPANY g TO 449 CA (5 73) (Corporation) (This area for official notarial seal) WITNESS the hands and seals of the parties hereto the RDER’S USE ONU COUNTY OF ___- executed the same. WITNESS my hand and official seal. Notary Public in and for said County and State. ASSIGNMENT - GENERAL - WOLCOTTS FORM 450 - REVISED MARCH 1948 nrn TO4 YO4 pNH g z5- ?4. W 3 f 1: loo 1 e4 i ~. . .\ < E i i + Theundersigned, PUBLIC SERVICE OIL CO., LTD., a California Corporation, 2725 Euclid Avenue, San Diego, California, 92105, FRED E. GRAF, . Pres ident for a valuable consideration, the receipt of which is hereby acknowledged, does &reby prant bargain, seH and CORV to The CITY OF CARLSBAD, A California Municipal Corporation the personal property described as All improvements located in and upon those parcels of land known as Lots 1 thru 6 inclusive, Block J, of Town of Carlsbad amended: County of San Diego Assessor's Parcel Numbers 203-294-02 thru 06 inclusive. I . - - -. -4- -- --_ -- -5 -4- -. 2- -5 ---_ 5 -_ -- -1 -. -- --- -- -. --- -5 -5 -I -. . -- The se1ier.X do&- for its heirs, executors and adrninistra cQJenant and agree to warrant and defend the title to the property, goods and chattels hereby conveyed, against the just and IaIwfNful cb and demands of all persons whomsoever. Dated: BLIC SERVICE 01 Fred E. Graf, I . _____ - ----------- L Theundersigned, PUBLIC SERVICE OIL CO., LTD., a California Corporation, 2725 Euclid Avenue, San Diego, California, 92105, FRED E. GRAF, President for a valuable consideration, the receipt of which is hereby acknowledged, do e S The CITY OF CARLSBAD, A California Municipal Corporation the personal property described as All improvements located in and upon those parcels of land known -as Lots 1 thru 6 inclusive, Block J, of Town of Carlsbad amended, County of San Diego Assessor's Parcel Numbers 203-294-02 thru 06 inclusive. Rereby grant, bargain, seH and convey to -. -4. -5 --. -. --. --. -4- --. -I -* -. -. -. -. -5 -5 -.. -I -* -5 -- -.. --- -- -- - -.. 5- 5- - - - i 1 heirs, executors and administratc The sellerX does..- for covenant and agree to warrant and defend the title to the property, goods and chattels hereby conveyed, against the just arid lawful clai and demands of all persons whomsoever. Dated: its - by Fred E. Graf, Preiident - - _-. --_ - - - TO 449 C @ (Corporation) blic in and for said cz I w known to me to be orporation that executed the within Instrument, Bpr*#!k*-&*-r-,.**&a.4-- NOTARY PU5LE-CAUE b 1 OFFICIAL SEAL K. DAVID niNrtricH PRINCIPAL, Of;FICEf tN \ \ SAH DIE& f&WTY \ \ b \ M~ couatissiotv EXPIRES DEL 5. 1977 resolution of its board $-rfe-ITc+zc.E--44~ Name (Typed or Printed) ; in and for sa P I I -_ -. heirs, executors and administratoc The sellerll doc for covenant and agree to warrant and defend the title to the property, goods and chattels hereby conveyed, against the just and lawful claim! and demands of all persons whomsoever. Dated: its @ TO 449 C (Corporation) STATE OF CALIFORKIA , COUNTY OF>d4&tv. 6dk'- 'j 2 } ss. # [/&,C %2 5. /,f 7,y before me. the undersigned, a Notary Public in and for said - M State, personally appeared 2- /,-G/? **-4 w z E J % t;; known to me to be the known to me to be known to me to be the persons who executed the within Instrument on behalf of the corporation therein named, and acknowledged to me that such corporation executed the within Instrument pursuant to its by-laws or a resolution of its board Presidedand - Secretary of the corporation that executed the within Instrument, e-e-------- t On .5 OFFICIAL SEAL 7 E. *MD MINNKH j NOTARY PLIBUC-WF, \ PRlNClPAL OFFtCE IN j SAN DIEGO CWNn \ I i -----c-b.zs-c~z~44 i MISSION WIRES DEC. 5, 1977 I Name (Typed or Printed) (Thls area foi officlal notarial seal) L 8 2 A ~' L .L I >. ;" ,.- ,.. .I ..=i ."i c: *.- L .I?* ~~~8m-8wa8- 4 *<$ e + .* 7 5; & G a<;& <? 4- $'az;:uaz=;y f Lt Pqj*?fr s e,%< -3.- c. ,* F 1 I &a%f. ?"@ au&J&!9;% .a;$ t&@ Q<>?&<> F L? e".? &&p'-$ E &Y&?.? b@ cy;' :Baag@ cT a':;. ob] .t: a aba71 b@ & <: r? p L@$SQ,,@ 8 c4 dm . ,. 4 .e e ?. I 1 E i,s~~$:~y~ a.D@ 33. 4'hs &as$F.ea Q"y~i1,::&~*-,"rrE t@$--+b 3% -* w ." ,j vk e$ c ::., 2 .i; 2 mg - a L'Q'?" * -a *";... ,": the ti:, e e E 0 $-," c Q 2 G -t; *,{ I?@ y.jpDg$@gt.2; - a -. 11 EXTENSI9N E LEASE, --e----- IT IS REAXBY AGKEZD, by and between the Public Serv3ce 0 Co,, Ltd., Lessor, and Claud H. Helton, Lessee, to extend the of that certain lease herernafter descr-tbed for a parqod of t years , c0rnmenc:n.g Jan.1,1970 and end-tng Jan.1,1980, an the s as now setforth 4n the hereqnafter lease, RTTH THE EXCEPTION, the rental shall be Two Hundred ($2OOaOO) Dollars per month f each and every month of the fjrst five (5) years, begqnsling J 1,1970 and a l;ke amount on the ffrst day of eabh succeedfng calendar month until December 31,1974c Two Hundred Twenty Frv ($225.00) Dollars per month on the fqrst day of each succeed calendar month for the second fqve (5) years of the term here end4 ng Jan, 1,1980. The lease referred to above 3s the one executed on the f day of February 1967, by and between Publqc Service 031 Co.,L Lessor, and Claud R, Helton as Lessee, coverqng the folloeJng descr!bed property; Lots 4 to 6 .inclus.tve in Block J fn Carlsbad, CalJf. accordsng to map thereof No. 535,fileci in the off4ce of the County Recorder of San Dieg County. The Pmprovements and buqldlngs include t lunch room, cab-tnet shop, offqce roam,rest roums and pavement I” WITNESS WHEMOP, the partfes hereto have executed .. ’ thqs EXTXEJSLON OF LEASE, 3-n dupllcate, th-ts 5th dqy of Januar 1970 * Pub%-c,S_er.a.fce 031 Co.,Ltd* A, G BY / ~*-’~,,l/ t’ Pr O---”LpL,, c: ------ ---- LL:--L--k*y--- i‘ Lessor. i *>e- 2. &7-& <a -------I- -- ,,,,-*-x*- ---- Gdaad K. Helton. Lessee, .. i) . % .I c &gA$s ----------- T 5 I s y; *L; :;E ;:,:;* ,A].:D BMT3i-iZD TIqTO 6):{ FP?.'I' Ai 5 iMXY ' '' E,lSf?, by an between %tTBLIC SL CE OIL CQ, LTD., a cor~sration,lessor, and C1a.w.d KO Eelton, Lessee, Xltnessetb: l* Lessor for a,nd in co~si.6eration of the rents hereti? TFS~~CVB and the covenan%sa conditions and agreee,ents here?n conlajned, peafosmed bz the Lessee, does hereby lease to the Lesse?? upon terns and conditions here?ns.fter set forth, -tE?.e foSlowing desc~ premises: c. ~ots f0u.r (4) to six (6) incIueive, Sari Diego, Stzte of Calffornia, a? ' 2n tiZoek J of C~~~lsb8-6, i.n the C~untg of . 1 j ..: : accor&?.ng to aap L1.ereof Ho. 535, c... - %.' f'iiec? 5n the off5ce of %he Ce~?m.,%y -, Eecorder of said San j;ieg~ C;oi;nty, I!ky 2 3 1888 0 _. z0 I%& -term of th3.s ease s~?a,l~ ca3mexace on February ~~1967, and. end- Baeember 31,1969 at a2,oo AIMO o9c7.oek. 3e L$?~see shakl, and he beseby agrees, to ?8,3 ??e-dlt, 2nd any -_ fncres.S$ Pn taxes for ths leased premfses as .f~llow~; ._ - ae~.. e~ze ~nndrr~l Seven.ty P~VC DOXI-S~S. Q$I~~,cIo) the first day of each h~v-cc~~dlng Cal.endar month u? to and j.nel.uding Ecicernbe:~ 193-969@ .. per month comecc!.ng Febr:u.ary a,196?9 and. on 3.2 Leesee agrees to pay &lag incrsaae 3.n taxes over the amourit sh?.ck w~as levied against sjaid. proper-ky for the tax yea.^ of 196% to 1967' d~si~g 2- like term of %!?.?.e lea-se eadi.ng 3ecem'ner 313P969. Lsssor ris to su';:mit a statement for taxes Ehen d.7-162 $ to the Lessee semi-annu.a,ll;: and Lessee ,ah,C?ll reT35.t the ?&Z0?2?2-h $0 Lesscar ah.. ahall.. psesen-:, BViedE n$ *i?eyaent to9Lc'.&8Se* 3.3 T'.e rent sj"ia.17- 3E ?a;%blc to Lessor at 3725 E-Q.cl5-d. hve2ue p SF.3 LL;iego, cs.3 Sfornie, -.. Li.e 1% 2s agreed kh3.t 35s b;x52d.fi~gs a.nd, r~ther fm?rc~ements XIOF l-oc~ted ~n ~~j-6 ~~3~~~~t~i ~>:e cs.:ed b~r the Lessor 3.~4 S?~E CETSC ny .3!5 e r t.77 5 * It j. 8 :rzr 5 EGd. a.nd -c::nderPt.ood +,$at ",?.e, hs.sez shell sell OR" ae.?.iga E886 E:-t:2EZ 807 LlaeaPi7?: 0% vn6er proces: :?ren?-se,o 13.:: 9.321 part tjzerssf 7?$ -Lho1:.t tbze DX*?..?? xritteen con.senl L mcc ,..:*bc¶r j ,-ts?DTYj.d,Bdg I .. k.oneuer t?!3.L Iessee shz.2 1 h&Ve t,ke ri&ht a tc y;Lthetencj5-::q U any S.J.Ct1 sF.blettfng, 19 .ssee; $5S.]-l -ey,??a.:.j? ob]-fga-:e ,rn-f; of Tent a26 ~28l~ffl:rm~~??a:e of al 1. 3blf.gations ,3f 4, 1% 5s fyptk-,es a:?:;r%e!5, %4 xT,nr;,srs+Qcl??, F.36 l)roy?!-$..d t!.a% j-3 .Jc.:2e Y Q-fl"-.7 -A t3i::ad 7:Bl'S:SD teke.s ?04yS6SS:0c.,3T holds pD.s%E!ssign sf sa.5-d L8Ss6e3 w?.s-t,Eerr fol: the ?;e f%-ks,% C??e65?,9?s or h$ TBfrtv.e sf 81 017 -pQ~E?e~f:~g 5 p( benI.::~ll..st,c?. -d 01 ?-s...olT+T@iaey zgaj.ast ss*:d Lessee of I.aw, ;aO? a;.loYf T ?ST~OI~ or co~r;orrt*t 0;; -I;n occ~~'p>i t:lr;el~~: Ict ~s.f-2 ~"ezi see 07: e,c?~ nert, {;j-!fi?:.eof i~j-t:?~u*; ";s 7!j~j.l;t~7? COX;: of I;$sSCFs -j-*h 'a$zj-rF Y- :Zr:$@if:-C&,1I.-iT ?~:~(~e~~~t~(j end z.fl-zC6 a- Li>a,t, le 2" se p by e;~~.cu,-t,z$o~~ ss7e 91- attach31enl, ~oon e.n;>- ePa5.x 3.8 B:FE "0 f.~:~t, SI -? -2- r- a. r :&a.ll 'r;e-qe %be rt.-ht u .5,0 EmTte?i3tel;- t,el.m$na+k,e t>l!j.S IeP'se EE6. d $9 the dzroised ;rernfszs snd t,he 2.e?rl:see3. %ej!!ns and $h.L1 b.ave % right t3 tEk?j! possession cf said -prerni.ses w4ij LhoTL3-t furS'.er nstl cjr prt'3cess of lav; 2% being %&El iaten-tion 2f each af the p"rt5 elaye nul.]. and. aoTd ?:x?- rPzht, title and> j-atee..eatz af Lessee 517 .( tkat neithei. th7*1~ ?.ease, g.m any lrterest -Lhere?r;, BOT si~1;ht e .=jccy-p~bcy %hereunder, al?_all accI*ze to e9-y tl??rd, I:~YEQ~ b.- 3' ~5-r-t Lessee, 2% being e2, exp~ess co~7enen-t 3f thl~ lza.~~?, sblhgat~~; @f 3.27' J-Zf;*a!. 0 2roCe 9s 9T pZQcE!ed.fngE 53 hankK'QptcS agt3.fllst s8.56 uron kepsw ar,c.! 211 ,7ezssr,s, >c';leT?t*s and autl+?or?.-Li5s CLBimqnV t T r5oh-k 0 k..iercrLnder grz.o%.ed to Lessee 0 and 8. condf.ti.on tnpon wh!.eh ease fs executed. by LESSQT", that %>?e term of thTs lease shall. eonf,fnv.e for an?,;? period tf;qs beyoxld. tbe elect83.on sf Plessor to tesmi_na-te said Iease in case sf -the ha.?:>enfz~g of th~ e~en-3~~ : any of them, hereinabove ;..ent,ionsd in thfs pz~agrapb, lr The Lessee covertants %ha.% it sill. not useg OP ,suffer 02 pc 87 any persoa LC use, the leased ?remises, or ea;? p.rt, 'hahereof, 1 anj". Use Or pllrDOse in VTO>.a%EQn of 'ca@ L8.??S 0s" the gB3Pke9d SL8.- $'ne State of CalffoX'EfS., 01' the ~f~.~nELc@s, Tc-uLE?.t$cns 6 Qf a"nr flrX ev.0bar5.ties9 s~d that du.r5.~g said %era evEry r)mt =2f the : premises shall be kept by the Lessee in a e1.ean. a-.d holeso some respects and E,% a71 times be Ed33- c~mpl_ied -.?..",!I by the ~essse( ditloa; end that 2.11 hea3tlz and polfce regulations shall in E: 8, Lessee agrees that if default shouid 5e made a5 aa;7 LiTe tke p.y:aen-C cf any rex?.-t 3ereln px-ovid.ec! to be paid, and sh2-3-l end SV.@h defa.altt s'isia1.l c(jni;inuc for a, Period sf thirty (36: d. R eontinrze for a perfod of ten (10) days from the date due %he? or if defaclt shovid eecur wftk rcespeet 4,g any 0163:~'~ ccrvanan'r, after notice the~eof TI., vrrl-ting from besssr, Lessor nay9 at 5 option, declare %?if s ?.ease termina.ted, and may enter q?on sa? Lessee or any o'r3e~ person 01' r~e-rs~ng~ an6 sgafil pespess a~d pfeRzfSeE23 With 02 TZj-thOl?t PTOGeSS Of ICI's, eXpE?l SEd E?T'?@-& "LE? seid preml'.ses, all *i"tl?out prejudice to any 9"i.has remedies ??h. tbS>? m.3y :lave nitk res?sct* to rent arrearages, or ot5;er branch SP Should e.@S:SOT bs compelled to ei-rrpl$,r 2.2 etto..rey -to co?l%,eD or azill-Lz.5.n e" atilt for the collec'trr,, 3f :cent (E+ Lessee she attsrney's fees for expenses 132 cu?-??ed by Lessoq 3% is furt2 agreed thet t31 ?;!?e event of any Iftiga",@n bet,weeP! 2.essor ant of Leasee ' s coi.Tent?.ntle 3erei.n ~~~'cai~ad. Y 5. to enforce an2 of the prov5si.ons sf this lease or any right c e5.-l'r?:er pnrt,.g 3eset.c, the ~lns'i?cce csful party cts such Iftigatit agrees to pzy the st?ccessfal part27 all cests and expenses, 4s: .ftC part,y, 2.12 cf ~h$cb shall. be included Sn end as 3 psrt ~i cludrng reaeonable s,f-bc?rnej7 F s fees fneurred there4n by the S? 2 udgezs 2% 0 la@ T-1 ine Leesee - ~~~i~~~~ts that it l ill at all %fmes durjng tl damage instzrance in E reasonable a-rnozat for the protectl'on a! the Lesscrc 8.C weil 89 bi:e Lessee. kl. The Lassor reserv;zs the right Sa enter =?en the Iteased prem%srs, OT any pert L'nei-esf, at any a.nd aI.1. scasonable%?me the yxr~oss of v!-.z:v3nrr Q %%e sa.me to see th,s.t Lessee 2.s perfor: sad observing the covza&s a.~d csndit!ons of thfe lesse, an6. as the Lessor rnay select nD-bfce to %he effect. %ha.% the Lesso: %ern Of kh5-s l-G?..s€ C%.TrZ all$ TE3,; fOT >l?..b?Lic I~$'.b~l~-?;g en$. prc .L 1, %:^,e purpose of psst:"!l?g 6Ed. keep2ng posted 3-n SU@h c?nSp1&"UC?2 n_05 Se ~espo~sj-ble Po? ai.,^ ~c;pa.!-rs QT ~.I.terztisns mace b:i Le -2- LI .r* 4.- ,,.- and also for t3.e pljirgsse 2-P ta.ki.ng posaessl~n fn the eve3.t of d.e fs 'tllt D 12, if 2,ny ;:=art 2f %;:le prernl~es sb-?-11 be ts.4en or condenned I ible of oceanation hereunder 9 th5 s: 1 ease B sh~3-l~ as to t2.e p8.s-i: and 'the renL payable l?_ere7~.~de~ shz~i. ne a.c?,justed sa %ha% &esse s5e.l; he @equ?ced to pzy f'c?~ the rema!.riZ~~ of the tera szc3 pc sti ion bears to the alae of tho en%j.re premises 8.L the ciate c a plLblic 92 CP_Uasi.-pl?bIi@ use and E :;art t5lareof remains snsce:!: "cs'xen, termlaa.le 85 of the da.Le title shall vest 5l-2 eondemnoss -3- 1 cf such :!ern.% 68 the iJ2liJ.e sf the ?art rene.! 1?j "g E,i"ker the cone ccndennaLionj bUJG in such event Lessee sbzl-l have the 33?tioe < .L bcLm5~ate -7. th3-s lea.se when t5.tle to the ?s.~t EO ~o~dz~ned u~~t in condennc?3" 0 l'je The is 'nereby dec2.a~e.d $0 be of t,ke essenc~ sf th,fs lea breach or breaches o:f an= -- 3 term, c~nditio~ or covenant of thls sha2.l not bar t'he s2'kseyvor.t enfosce3e~L t,kereof, nr?r be cone 8"s rca5~es 02 for."ei%iJ.re 02 an77 J rj.gh"s 07" remedi.es 32 Lessor, and of all. %'.e prsv;.s:.ons q"!eT:50f9 and *.he Tiaaiver PT7 Jd Lgssor of any s?fcrseq??.eat Sreac3 t'r..ereof, remafr, In pessesslon e2 the I:.es.sed grem?-pes,or sng part there Eh811.1 conslltuv.*tr a tenancy from BDEh'L': -bo qont'n Qn?J* i5* The .^ore&Y?S.ng agreement shall Znnre u;c the $eneI"i_*L of 2.c sent&tZaes, SueCEsgOnS and aes1gnzao 013 FeSrlZerJT f; a?5y0 ZAe It is uad.ers'iood and. eg~eed that 4n the event Leasee sko aftae-. the expiIration or" the term of t.h?.r: Isase,snck holding D be hin6.5ng 92 the parties !?ereto, ~eirs,dzai~ees,pe~~soaal rey Zi;l;B@TJtB-$. 4n c;:.pli@g.-ke 9% Ssn 314eg3, Ca"?.?*gorgia+ '3 -Ty) .L L,>LI'C SEII,BICZ CXI, CQ. 'LTG:, 8.2.Wpor at ion a- "y -.#--Le '. -._ '., -. d<6ag+* ' (2 p4 v By L-9 jl_l ,;J,t.x" c Secs '% -, C' Ses.sFs?-, ki,ud. .,- /:-: JL.LZ.& --_s-_ --_----p_------y__p_-- Cl-aud 2. Eeltor, Lessee. a- ,.: * &Z$-ST; ."_*Ce_l-*l gy:IS *- F,XA ,--;E f$;TQ JATJ!3VST x, 297Cj9 by alld bai;T;een PI ,!jar.i;.ico 02-1 Co.,L.ir.d,, Q eor?ornt?cn, QS Leesor, an6 i)a.vid c, EcCh~si?e.~-, ... . Le SEee, iiltnesseth s" c ov 3 na nt s 9 c 3 yl di. ti ,;,I: E. an zL ag; c-' ,,me3fs .j f?eX-ciT_ c?r,.t;&x?d, to be performec ae ~e~~~y for z.~l~ iE consFde~gtion 3f t,hE! rents hei-sin ~eses-~sd, ~Sssee., dc/ea hei.ebg lease LO ?Jesse;>3 upoii -tiia I;~~ZQE ~.:nd c~DcI%~.ToI~~ her< sat fosi;k.,, the fo~.l~-!:ir~g describ~d. premisss: ZO-LS one (€1 to foxr (4) inc~us~ve~ in Block 3 of CarlE-bad, in the County cr 3 3.11 B5 eg 0 > Becorder of sa5d Ssn 1;iqy County, Stat (3 02 c :;> :Li for r,i 6s. j acc~rdlng to map thersof No. 535$ ffled ia $126 office of the county ,,* f;iay 29 x2f.jse 9- 2, fitle t.;:p:g 030 -i;l.?>-,s ip:;.~~ sh3.L.'; c=z?ln.ejfi@o 5n Pu$pst :$,1g739 az.6 en Decanl'aer 31,1979 2% t-2.0Q 44.1.:. O'ClOCBI -boxes for the le3.scd prer?&es 3,s folloms: 3. Lessae sha?-l, and hersby 2grres3 to L2"jT rer,t, and ang. '..ncreosc= 3.1, Two bundrad 'caeaty flvo ciol.iars ($225,00) pes month co Septenbar X, 19732 ~nd cant:'- dng et that rat.@ untj 2- December 31,:.$3'74is Two hundirad fift$jrT: dolJ.ars ( 250,ooj po~-~~o~th:aht~l,b~c~~~~~ 3k,1979. 3r2. Lessee Fgrss;s tilt pay ar,y ~-I~CTC~G.S~ iaa d-ia~es OVQ~ .tk.;c a,zourat w taxes ivherz due, ta T;A~ Lessee ssa4-a.nnua.lIg and Lasses remtlt the umour >*3. The rent shall be iay8b1.e $0 ~essor at 2725 ~ucc1i.6 Atysnna-,::\c lec5ed s.-Q:c~% sa~d pro?%rty 29s: the tax yea,r of 1972-- 1973, dxrT-:na 0 of tb4S T:.iil endq-yi'la December 31,1979. Egsssr S-S to subm~t a statcr.-,zslt LC3ssor xho s3iC.l.l pre;sent B%*;.da;qce of p.".pent to LessG?.e* ?, C L ?! f for! n j- a , 9 2 3.0 5 located on said property are ownee by tka Lessor end are ptirso~a.1 p? 5. It is further agreadand unZ.:erst~od thzit the Eessea ~98~~1. mi or assign this lease e"lhcrs soluntarflg or un6er process of law9 lpor i any person or cordoration to sccnpy the ~easoc; premises 0" a,.ay part -E wi-fihout the prior mr"*ttenz consent of %he Lessor; prov2de6, bo~~evo-. %h: Lessee shell have -the right LO sublet BE3.d ~TEZ~SSE or .Z,D;? ~W-L tkr_arec wi-thout the wrftttan consent sf the Lessor, it be4 ng spocif5cslip uadsj and agreed %bat9 notsfthstan25 ng a;q such subletting, Lessee shall ra: 'ch?..s X@&S~* 49 X% is mutually agreed that the bi~.~L&~ngs snd ~-33.2;~ tnproy *-I ObIg-g~i-t,ed for the ;p~.ym~~-~ of rect :~nd perforllacce of %I1 obzagat?ons be It is furthsr agreed, undsretood G~Ic~ 3rovlded th.:::; in -t,hs clr f,h!-rd p=I"soE, t$.!<Gs possess?,?G, QT 1: 5s y>ssse$:&c of EE3.d pn?mises b 2.QE3 szle e>r zitt&cjmenL, upo:rj any c Ta ne zgalnst saZd Lesses, 1yhsLh %bc 1:ekleSit 0: cyci:itors 01: by vfrtus of mjr bond 02 procaed.ing 5x2 bQ - up rtnaoivencg cga5nst sz5d. Lessee, ~es~m shall havs '.,he night -be inn term" nate th5-s lesse 2.~6 <$Clare null 3.n~ ~7of.d all pf.gtit, t~.tle andl 5. of Lessee in and to ths deni-ses. prsz??ses a~b the ~.e.n;i.ss~ $eri~~ t;nb sh -. t,tle rf.gh+, to tz.ke ~.0~~~;~~131~ of sp,..ld pren?.s:+s ~gi~,~:o~~ j~u~*+j~~r ligti ee p-roce9s of $s.;ug 5% he?.ng th_e ?.Eten-kP on op so@:?: Of -bllG pr$i.es 'n;>reto ?.E bdi.nkSUptCjT ag~~'3s-l sw?d gt)s~ee, 2% behg ST! express covenan-t; 0' th $r tlzl'.~ isass o i:or any :gterest t~~~~ei~, nor ~f.gbk of ccc-~.por,cy the.i- rh8.I-I ~.~c~'i1.e LO acy th!rd pex-aon bjr Vi-Ttue 01 &.ny legs: process or pr ., - WL9- * r ,. .* ?_1 sblfgg,tsry upon ~esses ~52 Z~.L 9ersonsI pa~er~ slid author': ties cI~i?m;-ng T : ;sp, % he;.ev.33:3.er gr.n:fi-i;c;b to Lessee, an6 a cond.! -!-? u-, c3 apr~n :vh4 ch tke~aj-g~ j. edj 1)y Lesscpr, that tha te2i.m of -th=s lease shaI.!- not com,t=-nue for any pe sa!-d leEse In case bnpy;eri: ~g of the e-jents, a. 0 .. timf! Yyond thE aise-i;ioil .Qf t'cs Lessor 1. L.0 -ieTm%.;;;ate or ~.,ng of tkeag her~?-n2,bo~.ie nei7tibned :XI th:.~ per ;igr ~ph. '7, T'r.e Lessee ea~jonnnts thC.3 ?t. i~5.11 not use) or suffer e? ?~r~it: person -bs u~~;o +,he lea.s~< p:qsmf.ses, 01- :;L>l~ part -';l;.zreaf, far 2.n~ us5 QX -9 1 -2 p5.343 = ia v! 0?2.%5 3r, or" f;he laws of the 'tTr,Sted St,Li.-i;zs, c.?e S-Ls.-te of CBL: r^c clean &ad -yl;Tb.Ol@SQjEe Cnyzd?.t: on; &E2 t:;s.t a]-l hez;,ith ar,< pbli c5! mg-&..t: i 02 -the oydJ :~~~~ice~. reguaghtions of any Zzgf1.1l ~,cthorftice, a,2cj that ~XW? teyln rvei-y p~rt of the Ieesed pre:T:iseE sh~.ll $e kept by -k,$a Esss,e<$ in Sha.11 5.n a,?-l regqe~t~ a.~d 2.t g-11. t!-mes be fu-:?.,;~ c~~~..-:.e~ yt::.-k,h 'bx S?ie LI 8, L3saee 8,grses thi,t 13 <efrjult shg~ld be ms~@ 2% 6.2~ $?!;la In $tj pqment 3.f ai227 rent hesein prbvibed to be paid., a,nd shall eDi~'i~~~~s fo: of ten (SO) ~Z-JTB frsm the dzte due thereof, or if default should oecu? spec% to ang othe~ @saanaat l:ere!-la z~d such ijef8,;uit sh??.Zl coni;ia~g ~OT dsya ~~fker notics i;h:sregf 5.a :::r~~!~r;g from T.,essQr, LBSSI -. T of ihh:-rty (2~) av e q- I: -i;s q)t:.;3n, C:eclere .t>,i,s lease kef nat.ed, &Ed ma2 eritsr upon said ; ss fir ~,essEe '9 cox?ecz:n+,s hc:*c1l2 cant,a! ne>d. wy.~h or adthou.% pr&oss of ?-E.Y~~ expel nd evS@'c therefram LessGi3 OF 3-n Fei"Foi> GT perscna, &;n~. a.gai.rpsesess snd. anjoy sd.d ~remlses, sII ~i-tho prejud?ce %Q ;~ny ro~jecjiea nl.3 c1-i -bhev may have yi5.th T$EP~C% to i-fi2n-b 23.i-T or other bres ma-tn4;af.n & s,gSt d. fee:$ for the expe.~.,sas i.iicu-i.ped by &ssors It 178 :rb-rtber ngreo6 tk2.t fn e~;~~~:~ of 8-2~ Qjv+iIgf:~I~p7 bst~i;.een Less~~ ass ~..,~s~~.B to e~f~r~a aq~ sf t? ~71i.s: QP~ of -tjh!-s _ie;nse or ;~ilg r?.::*%t 5 -- of eitkes p::.yty hereto, the ?_IE~?JCC~: 3. Skiould LGssor '@e coa:;cji'ied to emplov an attorney Lo c~T:;?lsncB for ".,e CCIIE.Ct;iQI? on" rent 1:)) Lessee shall pay atto _.- .. p~yty %a szch 15:bf.p;:tf ~3 ~.gxaee.3 J- bo ~zy i;:ze s.c:c~e.ss~~~ ~~.:Z.JCTT all eoste successful pg..rty, all of :q&3.213 shai ... be ?f .iclLIded 5.n 88 73 per% 92 .I-? Lao ; e. 13. expenses, including rea~n~~.~~9 ~i;t~rgeylg fees ! ;?c?lrre~ t~er~~Li~ by I;? --I rfi 8 zt , rp? - .-. -7 &Z 10, *;ne Les-fAt: coyeaanCs Ghxt 5-t ;*f:117.~~ s,'~ GL- <,iaes du..r'ng tT--,e '6: ._. L" 2- bL;'2- 1, " 3 - IEG.SB2 C&,r?ji an< pay f0i.l piJ51: @ 17 c"i;.- &:L%x sad pnpez-ty 2 53 3. PG8,sQn&?.bl@ e.=o?Lnt for the gXQif?ci: -33 Qf the Lessor 6.5 7.je 11. The Lessor ::e:~e~ve;z %he y!s.b< tD sl36,er 3~p~i: JG~G lep.sed grem: m-7 Q 01- any part thereof, :>,% asv :2,:12 SI.]. ~~~.~o;~RD-:.~ ~~~~~~.~ fay t~ie pu2pos.a am< CO:;IC? ~'Q:Q.s of -Li:5 ,c 1~p.s~~ Lasso;.. ~iifll not be responsfble for ~n-ji : 3-32 the Same to s2e -k3ha,~ tGG Lez$e;@ T.2 FeTcOrT5X<- --* 233 ObS8rTdT'ng tbe 2 .,. QF Z..~~e9.i?.~~? 32,s 1 .do ?j\; L2re EOSSee* 12, Tq!3c 9.5 :?ci-&:bT -_ dcc. cd to by, of -tk;_& ~S.S@TJC~ 32 -!-X-. ui! !. s lea ,ce 5:i. 2 2. e'. 8%: 3. .. ,T ~,.1.>- tae -C>TQV? 21 c.x~ h~,re,3f3 r,-.:n$. ti:.$ -!;z.ivei-. cy ~rjss~?:' 3.f ~f 2-n~ t~,;:_.i?, ci3cc':'. L<O;i, CY @o~~e~~.~~~f t2~5.S &z ~~9:~~!~,~~ >z s '2 2 -i&c:reef, n(3r be consLrv-;sd 85 2;- -$ialyaP. 0x1 foyfe! t,u;.e of 22 01: rems$ies of Less~r, or ~&ZTT .subseqa@~~ breg.cj2 thc.reofe I 13, 2% 4, Q~~~~-~'~~~< end ,y,grezd tj2:rt i-n -&hs erer?:; kezsee Fhou>.d :. -KI ?oss%:s.sion of the la~~:.seb premises, or any px~t "Lei-eof a%"<---- UG.h the .* +l ! of the $si*i2 of -ih?e j-ec8e2 s~ch holding ~~rep~ shc,ii ~~~~$2t~~~~ 3 te.rt2. fyom month to acL-l.$:: 33il7.Te une CG.11,8f<t Gf end i; 14.- ?he fcre.PQ4 ng qp'r7f i2-l sk:li. 1.pUTe -i;o 6' - -.- -. . c, G;1 the ps.rt;.ee j,.,..tc, j;l@?&-r '..,-ps, dc-j.5 sees9 y:eysonai y@prese&&%jy Xxeep.tc2d i, 2Qzny:I.'.e"te - -2 a+, Csr.lsi;aG, CZ.l?: foT&i,9 03 /..L;gJ& 2, LC;?; sue c e 8 9 OT s End w s 9 5. gn s * -2-