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HomeMy WebLinkAbout1984-11-06; City Council; 7921-1; Lease Agreement for Branch LibraryCM OF CARLSBAD -- AGENDA BILL A13# i921-1 TITLE; APPROVE LEASE AGREEMENT FOR MTG._ 1 L&/ 4: ADDITIONAL SPACE FOR BRANCH LIBRARY IN DEPT.-LIB- PLAZA DE LA COSTA SHOPPING CENTER DEPT. HD. Q" CITY ATTY CITY MGR.'� RECOMMENDED ACTION: Adopt Resolution No. 01 authorizing the Mayor to execute a lease agreement for additional space for the Branch Library in Plaza de la Costa Shopping Center. ITEM EXPLANATION: At its October 23, 1984 meeting, Council approved Agenda Bill 7921 to expand the La Costa Branch Library by leasing the adjacent 1,459 square foot store building. Rent will commence February 1, 1985 on the four-year lease. A move -in prior to February 1, 1985 would be at no rental cost to the City. A $6.00 per square foot improvement allowance is included in the proposal. This will provide $8,754.00 which, based upon estimates, will cover the entire cost of remoldeling the space for library use. Furniture for the program/meeting room space will be purchased with Friends of the Library funds. (FISCAL IMPACT: First year costs would include the following: Rent 2/l/85 - 6/30/85 $5,836.00 Library Book Shelving 5,000.00 Utilities 800.00 $11,636.00 No funds are available in the library budget for this expansion. A fund transfer of $11, 636. from the City's contingency fund to the Branch Library operating budget will be necessary. EXHIBITS: 1. Resolution No. to S' authorizing the Mayor to execute a lease agreement fer additional space for the Branch Library in Plaza de la Costa Shopping Center. 2. Lease agreement -- Exhibit "A". Z 0 t` V Q a V Z 0 V 1 1 z 3 4 5 6 7 8 9 10 11 12' 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 is RESOLUTION NO. 7805 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING EXECUTION OF LEASE AGREEMENT FOR ADDITIONAL SPACE FOR BRANCH LIBRARY IN PLAZA DE LA COSTA SHOPPING CENTER. Whereas, the City Council of the City of Carlsbad, California has determined that it is in the best interest of the City to enter into a lease agreement for additional space in the plaza de la Costa Shopping Center for the branch library, NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. That a certain agreement between the City of Carlsbad and Plaza de la Costa Shopping Center, a copy of which is attached hereto marked Exhibit "A" and incorporated herein by reference, is hereby approved. 2. That fund transfer number 740 in the amount of $11,636.00 is on file and incorporated by reference herein. 3. That the Mayor of the City of Carlsbad is hereby authorized and directed to execute said lease, for and on behalf of the City of Carlsbad. l 2K V 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Carlsbad, California, on the 6th day of Novenber 1984 by the following vote to wit: AYES: Council Members Casler, Lewis, Kulchin, Chick and Prescott NOES: None ABSENT: None 17� .1/ . MARY CASLER, Mayor ATTEST: oI . ALETHA L. RAUTENKRANZ, CityACIerk (SEAL) 3 _ 19NDA1" RD Cvi,ti'.i: IRC1LCASE THIS L E.RSE, dated for reference purnc--es onlv im: 30th day of October to 89 is made berveer. Plaza de La Costa Associates (the "Landlord") aad City of Carlsbad Library - La Costa Branch (the "Tenant"). 1. PREMISES, Landlord hereby leases to Tenant and Tenant hires from Landlord on the terms, covenants and conditions set forth herein, those premises crosshatched on Exhibit "A" attached hereto, (the "Leased Premises"), and incorporated by reference herein. The Leased Premises, approximately 1459 square feet, is located at _ 77SA-1, F_.1 Camino Real, Carlsbad, CA 92008 _ 2. MIN11"OUM RENT. 2.01 Tenant agrees to pay Landlord as minimum rent (rent), without notice, demand, deduction, or offset, the monthly sum of S i t 67. 20 in advance on or before the first day of each and every successive calendar month during the term hereof, except the first month's rent shall be paid upon execution hereof. The rent shall commence (check applicable box): ❑ On the 1st day of February , 19 85, if the premises are being leased in its "as is" condition or subject to work to be performed by Landlord prior to said date. business, whichever is sooner. The term "substantial completion" is d ate tin which Land- lord or its architect notifies Tenant in w, - emises are substantially complete to the extent of, Landlord's woe aeified'Tn said Exhibit B, with the ex.eption of such work as Landlord cannot G8FFFPt90 UAW 2.02 Rent for any period winch is for less than one month -shalt be a prorated portion of the monthly rental based upon a thirty (30) day month. Tenant acknowleooes that lat^ payment by Tenant to Landiaid of rent ar-other sums due hereunder will cause Landlord to incur certain costs not contemplated by this lease, the exact amount of whichwould beextremely difficult and impractical to ascertain. Such costs include, but are not limited to, processing ; and accounting charges, and late charges which may be imoosed on Landlord by the terms of any trust deed covering the Leased Premises. Therefore, in the event Tenant shall fail to pay any installments of rent or any sum due here- under after such amount is due, Tenant shall pay to Landlord as an additional rent a late charge eoual to Five (5%) ? percent of each such installment or other 3Jm. A S5.00 charge will be paid by the T enant to the Landlord for each j returned check, in addition to the late chars_. of all the provisions of this Lease. If at any time during thtime of, or any�ucnon her rrttiffshall be in default in payment of rent o►any other sum due Landlord h�.,h,re reunder, Landlordy a I or a part of the security deposit for such payment. Landlord may also apply all t e depoepair damagesto the Leased Premises during or upon termination of the t eated by this lease. In such event Tenant shall pay to Landlord a like sum as additianat s� ' enant is not in default at the termination of this Lease, Landlord shall return the deposit andlord shall not be required to keep this security deposit separate from its general funds, ti —U.S. CityAverage--AllItems (Index) as published by the United States Department of Labor's Bursa abor Statistics, increases over the base period index. The base period index shall be the Index fort endar month which is four months prior to the month in which the rentals commence (the*month a ch yearly anniversary thereof in which the rent hereunder commences shall be known as the rental encement month). The base period index shall be compared with the Index for the same calendar m or each subsequent year (comparison month). It the Index for any comparison month is higher than t ase period index, then the rental for the next year shall be increased by the identical percentage Comm g with the next rental commencement month. In no event shall the rental be less than that set forth in first paragraph of this article. (By the way of illustration on!,, { if Tenant commenced paying rent in Au 77, then the base period index is that for April 1977 (assume 130) and that Index shall be compared a Index for April 1978 (assume 136), and because the index for April 1978 is 4.61% higher, the be mencing August 1978 shall be 4.61% higher; likewise the Index for April 1979 shall be compared with t ex for April 1977). d the Bureau discontinue the publication of the above index, or oublish same less frequently, or alter a in some other manner, then Landlord shall adoot a substitute Index or substitute procedure which reason• 3. PERCENTAGE RENT. lord,at the time and in the manner herein specified additional rent in an amount equal to_ __ a of the amount of Tenant's gross sales made in, upon or from the Leased Premises during eac ar year of the Lease term, less the aggregate amount of the Minimum Rent previously paid by Te r said calendar year. 3.02 Within thirty (30) days after the each calendar month following commencement of rents, Tenant shall furnish to Landlord a state • writing, certified by Tenant to be correct, showing the total gross sales made in, upnn, or from th a Premises during the preceding calendar month, and shall accompany ehch such state- ment wi yment to Landlord equal to said hereinabove stated percentage of the total monthly gross sales made (1) FOnm n AT 1000 FL - NET payment. Within thirty (30) days after the end of each calendar year of the term nereof, Tenant shall furni �to Landlord a statement in writing, certified to he correct, show►no the total gross sales by montns mace m, on, art from the Leased Premises during the preceding ealenear year, at which time an adjustment shall be ma between Landlord and Tenant to the end that the total percentage rent paid for each such calendar year sh3ll a sum equal to said hereinabove stated percentage of the total oross sales made in, upon, or from the Leas remises during each calendar year of the term hereof, less the Minimum Rent pursuant to Article 2 for each ch calendar year, if previously paid, so that the percentage rent, although payable nonthiy, shall be comp ed and adjusted on an annual basis. The gross sales for the initial partial calendar year shall be adjusted wit ' thirty (30) days after the end thereof and the gross sales for the final partial calendar year shall be adjusted ►thin thirty (30) days after the end of the term. 3.03 The term "gross sales" as used in this Lease shall include tbtrentire cross receipts of every kind and nature from sales and services made in, upon, or from the Leased Prem' s, whether upon credit or for cash, in every i department, whether operated by the Tenant or by a subtenant or htenants, or by a concessionaire or concession- aires, excepting therefrom any rebates andior refunds to Gusto re rs and the amount of all sales tax receipts which i has to he accounted for by Tenant io any government, o any governmental agency. Sales upon credit shall be i sax the period which the merchandise is delivered to rite deemed cash sates and shall be included in the gross so i customer, whether or not title to the merchandise pa s with delivery. 3.04 Tenant shall keep full, complete an roper books, records and accounts of its daily gross sales, both for cash and on credit, and shall keep or cans to be kept same for any separate departments. The Landlord and its agents and employees shall have the rig at any and all times, during the regular business hours, to examine and inspect all of the books, accounts an records, including any s3les tax reports pertaining to the business conducted in, upon or from the Leased Pre 'ses, for the purpose of investigating and verifying the accuracy of any statement of gross sales. The Landlord y once in any calenaar year cause an audit of the business of Tenant to be made'by an accountant of Landlor ' selectinn and if the statement of gross sales previously made to Landlord shall be found to be inaccurate, then a t in that event, there shall be an adjustment and one party shall pay to the other on demano such sums as may b necessary to Bettie in full the accurate amount of said percentage rent that should have 6eEn paid for the peri or periods covered by such inaccurate statement or statements. Tenant shall keeo aii said records for -three (3) ' -,rs if said auait shall disclose an inaccuracy in favor of Tenant of greater titan a rivo (2%) percent error wit espect to the amount of gross sales reported by Tenant for the period of said report, then the Tenant shall i ediat,.iy pay to Landlord the cost of such audit; otherwise, the cost of such audit shall be paid by Landlord. Ili xch audit shall disclose any willful or substantial inaccuracies this Lease may thereupon be cancelled and termi• 4. TERM. The leased term shall commence on the date that the rental commences and shall be for a period of Four (4) years. The parties hereto acknowledge that certain obligations under various articles or exhibits hereof may commence prior to the lease term, i.e., construction, hold harmless, liability insurance, etc, and the parties agree to be bound by these articles prior to this rnrnmPnrement of the lease term. city $hall have the option to extend the tare of this 1re$e Agresaant for a period of one. two or three years. city oust exarc'ae this option 'n written fors t0 Leeemr at Last 180 days prior to iritial term expiration. hint for ttw extended tare shall be $1.00 per aquas foot of leaved apace, plu► the '"Crease of the Consumers Price Index over the previous ft _ five (5) year r_t period. and impositions (general or special), hereinafter called "real estate taxes" levied against the entire center o e portion thereof containing the Leased Premises during the term of this lease. Said real estate taxes include taxes levied upon or, measured by the rent payable hereunder, whether as a so-called sales tax, transaction (vilege tax, excise tax, or otherwise (but no income taxes shall be payable by tenant). Tenant shall receive, upo ritten request, a xerox copy of a tax bill. Any real estate taxes for the year in which this lease commena terminates shall be apportioned. With respect to any assessment (other than those delineated in the initial to ces (1) which may be levied against or upon the -real property of which the Leased Premises are apart, and whit nder the laws then enforced may be evidenced by improvement or other bonds, or which may be paid in ann installments, the Landlord shall cause such improvement bonds to be issued or cause such assessments to paid at the maximum permissible number of annual installments, and in such event, the Tenant shall on be required to pay its portion of such installment payments, with interest thereon, as each thereof mature and Tenant shall have no obligation -to con- tinue such payments after the termination of this Lease. (b) All premiums on a policy or policies of i urance providing protection against any peril included within the classification "fire and extended coverage", t _ether with insurance against vandalism, malicious mischief. with loss of rent rider, to the extent of the full re cement cost of the center or the buildino of which the leased premises are a part plus the premiums on any er insurance that the beneficiary under any first trust deed might require. (c) The cost of cleani , repairing, replacing and maintaining all of the common and parking areas of the project, including but not li ' ed to utilities, sewer rents or charges, liability insurance on the parking areas, rub- bish removal, landscaping a gardening, permit and inspection fees, if any, restriping, repaving, replacing bumper guards, replacing fight bp s, and employees wages, social security, unemployment contributions, union benefiu, contractual paymen , rEarly, for any employees, or third parties maintaining the parking and common areas,or fees paid to a t ' party in connection with same, or together with any cost incurred by Landlord pursuant to paragraph 14 . Parking and (:ommon area maintenance cost shall also include a supervision and administration fee equal ten 00915) percent of the total cost of (a), (b), (c), and (d) hereof. (d) Any parking charges, utility surcharges, or any other costs levied, assessed or imposed by, or at the EARLY TER14INATION. This Lease may be terminated by City for reason of budgetary constraints causing cancellation of funding for this library facility and for no other reason at any time after t,+enty-four (24) months Porn date of acceptance by City by first giving to Lessor no less than 180 days prior written, notice, in the event 0- - Lease it term:nated early by City. then City ball re-r—`srse the landlord the star, o` $15,000.00 wh'cn stir stall be reduced by S3,q _.00 every one year period following ti.e DATE OF ACCrr:ANCE. (2) • parking facilities serving the Leased Premises. Tenant's prorata share is defined as a fraction, the Hump is is the total floor area of the Leased Premises and the aenominator of which is t or area of the building Snopping Center (or portion thereof relating to the expense) c t e time the payment is due. Tne cost enumerated in this Article 5 will be paid at the 6. DELAY IN DELIVERY iN POSSESSION. If Landlord for any reason whatsoever, cannot deliver possession of the Leased Premises to Tenant at the commencement of the term of this lease, this Lease shall not be void or voidable, nor shall Landlord be liable to Tenant for any loss or damage resulting therefrom, but in that event there Shall ha, a-prnpnrtionate reduction of rent rnverinn the nerind bP1wee❑ the commencement -of the tare(( ?nd the time when Landlord can deliver possession. The v rm of this Lease shall be extended by such delay. 7. USE OF PREMISES. The Leased Premises may be used and occupied only for Carlsbad City Library, La Costa Branch and for no other purpose •` ,r Landlord ooes not represent nor warrant that the premises can be used for such purpose, as it is incumnent upon Tenant to ascerain from the proper governmental authorities whether or not the premises can be -used for tenants intended use. Tenant shall promptiy comply with all laws, ordinances, orders and regulations affecting the Leased Premises and their cleanliness, safety, occupation and use. Tenant wil) not perform any act or carry on any practices that may injure the Leased Fremises-or be a nuisance or menace to tenants of adjoining premises. Tenant shall not cause, maintain or permit any outside storage or sales. 8. UTILITIES. Tenant shall pay for all water, gas, heat, light, power, teiepnone service and all other utilities metered to the Leased Premises. Landlord furtner reserves the right to install separate meters for any public utility servicing the Leased Premises for which a meter is not presently installed, in which event Tenant shall make ment when due directly to the public utility involved. In the event the premises are not separately metered ror water or any otner utility, Tenant shall pay a reasonable proportion, to be determined by Landlord, of all jointly metered charges. Landlord shall not be liable in damages or otherwise for any failure or interruption of any utility service, and no such failure or interruption shall entitle Tenant to terminate this Lease or abate the rent and other charges. 9. ACCEPTANCE OF PREMISES. By entry hereunder, Tenant acknowledges that it has examined the Leased Premises and accepts the same as being in thb condition called for by this Lease. See Article as recardinc construction Allouanct 10. ALTERATIONS, MECHANICS LIENS. _ 10.01 Alterations may not be made to the Leased Premises without the prior written consent of Landlord and any alterations of the Leased Premises except movable furniture and trade fixtures shall at Landlord's option become part of the realty and belong to the Landlord. 10.02 Notwithstanding anything contained in Paragraph 10.01 above, Tenant may, upon the written consent of Landlord, install trade fixtures, machinery or other trade equipment in conformance with the ordinances of the applicable city and county, and the same may be removed prior to the termination of this lease provided Tenant shall not be in default under any of the terms and conditions of this Lease. Tenant further agrees to repair, at Tenant's sole cost., any damage, caused by removal of such equipment and fixtures. Tenant shall keep the Leased Premises, and the property in which the Leased Premises are a part free from any liens arising out of any work per. formed, materials furnished to, or obligations incurred by Tenant. All such work provided for above shall be done at such times and in the manner as Landlord may from time -to -time designate. Tenant shall give Landlord written notice five (5) days prior to employing any laborer or contractor to perform work resulting in an alteration of the Leased Premises so that Landlord may post a notice of nonresponsibility. 11. FIRE INSURANCE HAZARDS. 11.01 No use shall he made or permitted to be made of the Leased Premises, nor acts done,whichwill increase the existing rate of insurance upon the Building or cause the cancellation of any insurance policy covering the Building, or any part thereof, nor shall Tenant sell, or permit to be kept, used or sold, in or about the Leased Premises, any article which may be prohibited by the standard form of fire insurance policies. Tenant shall, at its sole cost and expense, comply with any and all requirements, pertaining to the Leased Premises, of any insurance organization or company, necessary for the maintenance of reasonable fire and public liability insurance, covering the Lased Premises, or the Building of which it is a part increase in premiums on policies which may�pe ied by Landl ises coveri�damages to the Building and loss of ren s normally included in extended coverage aboves for the 11.02 Tenant shall maintain in full force and effect on all of its fixtures and equipment in the leased Premises a policy or policies of fire and extended coverage insurance with malicious mischief and theft endorsements to the extent of at least eighty percent (80'/) of their insurable value. During the term of this Lease the proceeds from any such policy or policies of insurance shall be used for the repair or replacement of the fixtures and equipment so insured. landlord shall have no interest in the insurance upon Tenant's equipment and fixtures and will sign all documents necessary or proper in connection with the settlement of any claim or loss by Tenant. Landlord will not carry insurance on Tenant's possessions, nor on any leasehold improvements made by Tenant Tenant shall furnish Landlord with a certificate of such policy within thirty (30) (lays of the commencement of this Lease and whenever required shall satisfy Landlord that such policy is in full force and effect. (3) 12. " ". URANG& — _ expense, shall proviae and keep in force with companies acceptable to Landloro public liabilityfor the benefit of Landlord and Tenant jointly against liability for bodily injury and property a in the amount of not less than Five Hundred Thnusand Dollars (S500,000) in respect to injuries to of one or more persons in any one occurrence, and in the amount of not less than Fifty Tnou ` rays (S50,000) per occurrence in respect to damage to property, such limits to be in any oreater s as may be reasonably indicated oy circumstances from time to time existing. Tenant shall upon an furnish Landlord with a certificate of such policy and whenever required shall satisfy Landlor such policy is in full force and effect. Such policy shall name Landlord as an additional insured all be primary and non-contributing with any insurance carried by Landlord. The policy shall fJ^ _, ,,rpyide 162t it sha!! not be cancelled or altered wit twenty (70) days' ptigr written norire to City is self —insured. 13. INDEMNIFICATION BY TENANT. 13.01 This Lease is made on the express condition that Landlord shall not be liable, or suffer less by reason of injury to person or property from whatever cause, all or in any way connected with the condition or use of the Leased Premises or the installation or construction of improvements or personal property therein, including without limitation any liability for injury to the person or property of tenant, its agents, officers, employees or invitees. Tenant agrees to indemnify Landlord and hold it harmiess from any and all liability, loss, cost, or obligation on account of, or arising out of, any such injury or loss however occurring, except if caused by Landlord's ne 1' ence. I3.02 in case any action, suit or proceeding is brought against Land76rb`oy reason of any such occurrence, under the paragraph above, Tenant, upon Landlord's request, will at Tenant's expense, resist and defend such action, suit or proceeding, or cause the same to be resisted and defended by counsel designated by the insurer whose policy covers the occurrence or by counsel designated by Tenant ano approved by Landlord. The obligations of Tenant under this section arising by reason of any occurrence taking place during the Lease Term shall survive any termina- tion of this Lease. 14. REPAIRS. 14.01 Tenant shall, at Tenant's sole cost and expense, keep the Premises and every part thereof in good con- dition and repair (except as hereinafter provided with resoect to Landlord's obligations) including without limita- tion, the maintenance, replacement and repair of any storefront, doors, window casements, glazing, plumbing, pipes, electrical wiring and conduits, and heating and air conditioning system (Tenant must keep in effect an air conditioning service contract providing for monthiv service of the system and a copy of said contract must be given to Landlord prior to commencement of the term). Tenant shall, upon the expiration or sooner termination of this Lease hereof, surrender the Leased Premises to the Landlord in good condition, broom clean, ordinary wear and tear and damage from causes beyond the reasonable control of Tenant excepted. Any damage to adjacent premises caused by Tenant's use of the Premises shall be repaired at the sole cost and expense of Tenant. 14.02 Notwithstanding the Provisions of Paragraph 14.01 hereinabove, Landlord shall repair and maintain the structural portions of the Leased Premises, including the exterior walls and roof, unless such maintenance and repairs are caused in part or in whole by the act, neglect, fault or omission of any duty by the Tenant, its agents, servants, employees, invitees, or any damage caused by breaking and entering, in which case Tenant shall pay to Landlord the reasonable cost of such maintenance and repairs. Landlord shall not be liable for any failure to make any such repairs or to perform any maintenance unless such f ailure shall persist for an unreasonable lime after written notice of the need of such repairs or maintenance is given to Landlord by Tenant. Except as provided in Article 18 hereof, there shall be no abatement of rent and no liability of Landlord by reason of any injury to or interference with Tenant's business arising from the making of any repairs, alterations or improvements in or to any portion of the Leased Premises or building of which the Leased Premises are a part, of in or to fixtures, appurtenances and equipment therein. Tenant waives the right to make repairs at Landlord's expense under any law, statute or ordinance now or hereafter in effect. 15. • PARKING AND COMMON AREASPAYMENT 15.01 Tenant, for the use and benefit of Tenant, its agents, employees, customers, ficensees and subtenants, shall have the non-exclusive right in common with Landlord, and other present and future owners, tenants and their agents, employees, customers, licensees and subtenants, to use the Common and Parking areas contained in the Center during the entire term of this Lease, for ingress and egress, and automobile parking, Additional Charges (Article 5) for the period between such commencement and the following January I nant shall pay these Additional Charges on a monthly basis concurrently with the payment of th Tenant shall continue to make said monthly payments until notifie'i �V Landlord of a change then . y &larch I of each year Landlord shall endeavor to give Tenant a statement showing the total Addition arges for the prior calendar year and Tenant's allocable share thereof, prorated from the commencem rental. In the event the total of the .monthly payments which Tenant has made for the prior calen ear be less than the Tenant's actual share of such Additional Charges then Tenant shall pay the differen ' a lump sum within ten days after receipt of such state- ment from Landlord and shall concur,,entI1RAtd a difference in monthly payments made in the then calendar year and the amount of monthly paymentti.v rch are then calculated as monthly Additional Charoef based on the prior year's experience. Any over r;nt by Tenant shall be credited toward the monthly Additional Charges next coming due. The act. itior.jf Charges for the prior year shall be used for purposes of calculating the anticipated monthly Add' ' a Charges fiar the then current year with actual determination of such Additional Charges after 'each ar year as above puivided; excepting that in any year in which resurfacing is contemplated Landlord shall (4) 11B Lyny J and Ten?)m h, . J 7 Tenant's share of said Additional Charges for the year in which this Lease ter s a i rmmed,ately pay any increase due over the estimated Charges nr y_ , conversely, any overpayment made shall be imme- diately rebated b — ant. ailure of Landlord to submit statements as called for herein shall not be 16. SIGNS. The Tenant may affix and maintain upon the aiass panes and supports of the show windows and within twelve (12) inches of any window and upon the exterior walls of the Leased Premises only such signs, adver- tising placards, names, insignia, trademarks and descriptive material as shall have first received the'written approval of the Landlord as to type, site, color, location, copy nature and display quaiities. Anything to the contrary in this Lease notwithstanding, Tenant shall not affix any sign to the roof. Tenant shall, however, erect one sivn on the front of the Leased Premises not later than the date Tenant ooens f or business, in accordance with a Sian criteria handed to Tenant upon execution of this Lease. 17. ENTRY BY LANDLORD. Tenant shall permit Landlord and Landlord's agents to enter the Leased Premises at all reasonable times for the purpose of inspecting the same or for the purpose of maintaining the Leased Premises or adjacent premises or for the purpose of making repairs, alterations, or additions to any portion of same including the erection and maintenance of such scaffoiding, canopies, iences, and props as may be required, or for the purpose of posting notices of non -responsibility for alterations, additions, or repairs, or for the purpose of piacing upon the Leased Premises any usual or ordinary "for sale" signs, without any rebate of rent and without any liability to Tenant for any loss of occupation or quiet enjoyment of the Leased Premises thereby occasioned; and shall permit Landlord at any time within thirty (30) days prior to the expiration of this Lease, to place upon the Leased Premises any usual or ordinary "to let" or "to lease" signs. For each of the aforesaid purposes. Landlord shall at all times have and retain a key with which to unlock all of the doors in, upon and about the Leased Fremises, excluding Tenant's vaults and safes. The Tenant shall not alter any lock or instah a new or additional lock or any bolt on any door of the Leased Premises without prior written consent of the Landlord. If Landlord shall give its consent, the Tenant shall in each case furnish the Landlord with a key for any such lock. 18. DESTRUCTION. In the event said premises are damaged or destroyi:d by earthquake or by fire or other casualty to the extent that said premises are rendered unfit for use and occupancy, then, and in such event the mini- mum guaranteed rental reserved by the provisions hereof shall be abated to the extent that said premises artunfit for use and occupancy, until the premises shall have been repaired and restored by Landlord. If, in the safe discre- tion of Landlord it is deemed to be impracticable or uneconomical to repair the same, then, in such event, and at Landlord's option, this lease shall be terminated and of no further force and effect, upon the Landlord's giving notice that it does not intend to repair or restore said premises. 19. ASSIGNMENT AND SUBLETTING. Tenant shall not either voluntarily, or by operation of law, assign, transfer, mortgage, pledge, hypothecate or encumber this Lease or any interest therein, and shall not sublet the leased Premises or any part thereof, or any right or privilege appurtenant thereto; or allow any other person (the employees, agents, servants and invitees of Tenant excepted) to occupy or use the Leased Premises, or any portion thereof, without the written consent of Landlord first had and obtained, which consent shall not be unreasonably withheld. A consent to one assignment, subletting, occupation or use by any other person shall not be deemed to be a consent to any subsequent assignment, subletting, occupation or use by another person. Consent to any such assignment or subletting shall in no way relieve Tenant of any liability under this Lease. Any such assignment or subletting without such consent shall be void, and shall, at the option of the* Landlord, constitute a default under the terms of this Lease. In the event that Landlord shall consent to a subiease or assignment hereunder, Tenant shall pay Landlord reasonable fees, not to exceed One Hundred and No/100ths (5100.00) Dollars, incurred in connection with the processing of documents necessary to giving of such consent and assumption by the assignee. In the event of a consented to assignment, the security deposit shall be deemed to be the sole property of the assignee. 20. TENANT'S DEFAULT. The occurrence of any one or more of the following events shall constitute a default and breach of this Lease by Tenant ' A. The vacating or abandonment of the Premises by Tenant l B. The failure by Tenant to make any payment of rent or any other payment required to be made by Tenant hereunder, as and when due, where Such failure shall continue for a period of three (3) days after written notice thereof by Landlord to Tenant C. The failure by Tenant to observe or perform any of the covenants, conditions or provisions of thiSLLeas: to be observed or parf ormed by the Tenant, other than described in 8, above, where such failure shall continue for a period of fifteen (15) days after written notice hereof by landlord to Tenant; provided, however, that if the nature of Tenant's default is such that more than fifteen (15) days are reasonably required for its cure, then Tenant shall not be deemed to be in default if Tenant commences such cure within said fifteen (15) daysperiod and thereafter diligently prosecutes such cure to completion. • 0. The making by Tenant of any general assignment or general arrangement for the benefit of creditors; or the filing by or against Tenant of a petition to have Tenant adjudged a bankrupt. or a petition or reorganization or arrangement under any law relating to bankruptcy (unless, in the case of a petition filed against Tenant. the same is dismissed within sixty (60) days); or the appointment of a tt:,stee or a receiver to take possession of substantially all of Tenant's assets located at the Premises or of TenanCs interest in this Lease, where possession is not restared.to Tenant within thirty (30) days; or the attachment, execution or other judicial seizure of substantially all of Tenant's assets located at the Leased Premises or of Tenant's interest in this Lease, where such seizure is not discharged in thirty (30) days. (5) 21. REEi.1EDIES iN DEFAULT. In :he event of any such default or breach by Tenant. Landlord may at any time tnercalter, with, or without notice or demand and without limiting Landlord in the exercise of a right or remedy which Landlord may have by reason of such default or breach: Terminate Tenant's right to possession of the Premises by any lawful means, in which case this lease shall terminate and Tenant shall immediately surrender possession of the Premises to Landlord. In such event Landlord shall be entitled to recover from Tenant all damages incurred by Landlord by reason of Tenant's default including, but not limited to; the cost of recovering possession of the Premises; expenses of reletting, including necessary renovation and alteration of the premises; reasonable attorney's fees; the worth at the time of award by the court having jurisdiction thereof of the amount by which the unpaid rent and other charges and Adjustments called for herein for the balance of thp, term after the time pi sunh award exreeds the ammint of surh loss fnr the same- nprigd that Tenant proves could be reasonably avoided; and that portion of any leasing commission paid by Landlord and applicable to the unexpired term of this Lease. Unpaid installments of rent or other sums shall bear interest from the date due at the rate of ten (10%) percent per annum. "Worth" as used in this provision, is computed by discounting the total at the discount rate of the Federal Reserve Bank of San Francisco at the time of the judgment, or award, plus one percent (1%). Maintain Tenant's right to possession, in which case this Lease shall continue in effect wrhetner or not Tenant shall have aband,-ned the Premises. In such event Landlord shall be entitled to enforce all of Landlord's rights and remedies under t'iis Lease, including the right to recover the rent and any other charges and Adjustments as may become due hereunder; or Pursue any other remedy now or hereafter available to Landlord under the laws or judicial decisions of the State in which the Premises are located. 22. DEFAULT BY LANDLORD. Landlord shall not (te in default unless Landlord or the beneficiary under any deed of trust fails to perform obligations required of Landlord within a reasonable time, but to no event later than thirty (30) days after written notice by Tenant to Landlord and to the beneficiary of any deed of trust r overing the Premises whose name and address shall have theretofore been furnished to Tenant in writing, specifying wherein Landlord has failed to perform such obligation; provided, however, that if the nature of Landlord's obligation is such that more than thirty (30) days are required for performance then Landlord shall not be in default if Landlord or said beneficiary commences performance within such thirty (30) day period and thereafter diligently prosecutes the same to completion. In no event shall Tenant have the right to terminate this Lease as a result of Landlord's default and Tenant's remedies shalt he limited to damages and/or an injunction. 23. ATTORNEYS' FEES/COLLECTION CHARGES. In the event of any legal action or proc,.eding between the parties hereto, reasonable attorneys' tees and expenses of the prevailing party in any such action of proceeding may be added to the judgment therein, including attorneys' fees on appeal. Should Landlord be named as a defendant in any suit brought against Tenant in connection with or arising out of Tenant's occupancy hereunder, Tenant shall pay to Landlord its cost and expenses incurred in such suit, including a reasonable attorneys' fees. In addition to the charges provided for above, Tenant shall pay a charge of S75.00 to Landlord for preparation of each demand for delinquent rent- 24. SURRENDER OF LEASE NOT MERGER. The voluntary or other surrender of this Lease by Tenant, or 3 mutual cancellation thereof, shall not work a merger, and shall, at the option of Landlord terminate all or any existing subleases, and/or subtenancies, or may, at the option of Landlord, operate as an assignment to it of any or all of such subleases or subtenancies. 25. CONDEMNATION. If any part of the Leased Premises or the building of which it is a part, or the Center or parking or common areas therein, stall be taken or condemned for a public or quasi•public use, and a part thereof remains which is susceptible of occupation hereunder, this Lease shall, as to the part so taken, terminate as of the date title shall vest in the condemnor, and the rent payable hereunder shall be equitably adjusted; but in such event Landlord shell have the option, at its sole discretion, to terminate this Lease as of the date when title to the part so condemned vests in the condemnor. If all the Leased Premises, or such part thereof be taken or condemned so that there does not remain a portion susceptible for occupation hereunder, this Lease shall thereupon terminate. if apart or all of the Leased Premises be taken or condemned, all compensation awarded upon such condemnation or taking shall no to the Landlord and the Tenant shall have no claim therein, and the Tenant hereby irrevocably assigns and transfers to the Landlord any right to compensation or damages to which the Tenant may be entitled during the term hereof by reason of the condemnation of all, or a part of the Leased Premises. 26. • A ef-Shali--delem;irre--ihal "'! is-ie-i#+ interests of the Center, Tenant will become a member of, and participate fully in, and remain in goad rtd ng in the Tenants' Association Las soon as the same has been formed), organized for tenants occu emises in the Center, and Tenant will abide by the regulations of such Association. Each membe shall have one (1) vote, and the Landlord shall also have one (1) vote, in the operation of said ' ton. The objects of such Associatioll shall be to encourage its members'to deal fairly and courteous t air customers, to encourage ethical business practices, arid to assist the business of the tenants s promotion and centerwide advertising. The Tenant agrees to pay minimum dues to the AZ rovided however, that in no event shall the dues paid by Tenant in any fiscal year of said Associ a in excess of fifteen (150 cents per square foot of Premises leased toTenanL Default in paymen es shall be treated in similar manner to default in rent with like rights of Landlord at its option to the (6) 27. WAIVER. The waiver by Landlord of any breach of anv term, covenant, or condition herein contained shall ' not be deemed to be a waiver of such term, covenant. or condition or any suosequent breai It of the same or any other term, covenant, or condition nerein contained. The subsecuent acceptance of rent hereunder by Landlord shall not be oeemed to be a waiver of any preceding breach by Tenant of any term, covenant, or condition of this Lease, other than the failure of Tenant to pay the particular rental so accepted, regardless of Landlord's knowledge of such preceding breach at the time of acceptance of such rent. 28. EFFECT OF HOLDING OVER. If Tenant should remain in possession of the Leased Premises after the expiration_ of the Luse term and withnyt executing a new Lease, then such holding over shall be construed as a tenancy from month to month, subject to all the conditions, provisions, and obligations of this Lease insofar as the same are applicable to a month -to -month tenancy. 29. TENANT'S STATEMENT. Tenant shall at any time and from time to time upon not less than three (3) days ' priorwritten notice from Landlord execute, acknowledge and deliver to Landlord a statement in writing (a) certifying 1 that this Lease is unmodified and in full force and effect (or, if modified, stating the nature of such modification and ' , certifying that this Lease as so modified is in full force and effect), and the date to which the rental and other charges are paid in advance, if any, and (b) acknowledging that there are not, to Tenant's knowledge, any uncured defaults on the part of the Landlord hereunder, or specifying 'such defaults if any are claimed, and (0 setting forth ; the date of commencement of rents and expiration of the term hereof. Any such statement may be refiPd uponty j any prospective purchaser or encumbrancer of all or an;portion of the real property of which the Premises are a part r 30. RULES AND REGULATIONS. Tenant shall faithfully observe and comply with the rules and regulations that Landlord shall from time to time promulgate and/or modify. The rules and regulations'shall be binding upon the y Tenant upon delivery of a copy of them to Tenant. Landlord shall not be responsible to Tenant for the nonperform- I ance of any said rules and regulations by any other tenants or occupants. Said rules may include (a) the restricting i of employee parking and (2) regulation of waste removal. f 31. GENERAL PROVISIONS. 31.01 Plats and Riders. Clauses, plats,' riders and addendums, if any, affixed to this Lease area part hereof. 31.02 Venue. Landlord will execute this Lease and will receive the rent and other payments at Landlord's office. Therefore the county in which Landlord's office is located is hereby deemed to be a proper place of venue for transitory actions. 31.03 Joint Obligation. If there be more than one Tenant the obligations hereunder impos d shall be joint and several. 31.04 Marginal Headings. The marginal headings and article titles to the articles of this Lease are not a part of this Lease and shall have no effect upon tt; a construction or interpretation of any part hereof. 31.05 Time. Time is of the essence of this Lease and each and all of its provisions in which performance is factor. 31.06 Successors and Assigns. The covenants and conditions herein contained, subject to the provisions as to assignment, apply to and bind the heirs, successors, executors, administrators and assigns of the parties hereto. 31.07 Recordation. Neither Landlord nor Tenant shall record this Lease, but a short form memorandum hereof may, be recorded at the request of Landlord. 31.08 Quiet Possession. Upon Tenant paying the rent reserved hereunder and observing and performing all of the covenants, conditions and provisions an Tenant's part to be observed and performed hereunder, Tenant shall have quiet possession of the Premises for the entire term hereof, subject to all the provisions of this Lease. 31.09 Prior Agreements. This Lease contains all of the agreements of the parties hereto with respect to any matter covered or mentioned in this Lease, and no prior agreements or understanding pertaining to any such matters shall be effect've for any purpose. No provision of this Lease may be amended or added to except by an agreement in writing signed by the parties hereto or their resoective successors in interest. This Lease shall not be effective or binding on any party until fully executed by both parties hereto. 31.10 Inability to Perform. This Lease and the obligations of the Tenant hereunder shall not be affected or impaired because the Landlord is unable to fulfill any of its obligations hereunder or is delayed in doing so, if such inability or delay is caused by reason of strike, labor troubles, acts of God, or any other cause beyond the reasonable control of the Landlord., _ 31.11 Partial Invalidity. Any provision of this Lease which shall prove to be invalid, void, or illegal shalt in no way affect, impair or invalidate any other provisions hereof and such other provision shall remain in full force and effect. 31.12 Cumu!ative Remedies. No remedy or election hereunder shall be deemed exclusive but shall, wherever possible, be cumulative with all other remedies at law or in equity. 31.13 Choice of Law. This Lease shall be governed by the laws of the State in which the Premises are located. (7) 30.14 Sale of Premises by Landlord. In the event of any sale of the Premises by landlord, Landlord shall be and i� hereby entirely freed and relieved of all liability under any and all of its covenants and obligations contained in or derived from this Lease arisino out of any act, occurrence or omission occurring after the consummation of such saie; and the purchaser, at such sale or any subsequent sale of the Premises shall be seemed, without any further aoreement between the parties or their successors in interest or between the parties and any such purchaser, to have assumed and agreed to carry out any and all of the covenants and obligations of the Landlord under this Lease. 30.15 Subordination, Attornment Upon request of the Landlord, Tenant will in writing subordinate its rights hereunder to the lien of any mortgage, or deed of trust, to any bank, insurance company or other lending institution,. now or hereafter in force against the premises, and to all advances made or hereafter to be made upon the security thereof. In the event any proceedings are brought for foreclosure, or in the event of the exercise of the power of sale under any mortgage or deed of trust made by the Landlord covering the Premises, the Tenant shall attorn to the purchaser upon any such foreclosure or sale and recognize such purchaser as the Landlord under this Lease, j If Tenant subordinates its rights hereunder, then so long as Tenant is not in default hereunder, this Lease shall remain in full force and effect for the full term hereof. I 30.16 Notices. All notices and demands whicn may or are to be reouired or permitted to be given by either party on the other hereunder shall be in writing. All notices and demands by the Landlord to the Tenant shall be t I i sent by United States Mail, postage prepaid, addressed to the Tenant at the Premises. and to the address hereinbelow, or to such other place as Tenant may from time to time designate in a notice to the Landlord. All notices and demands by the Tenant to the Landlord shalt be sent by United States Mail, postage prepaid, addressed to the 1 Landlord at the address set forth herein, and to such otner person or place as the landlord may from time to time designated in a notice to the Tenant. ! t C.W. Clark, Inc. (address below) To Landlord at: i To Tenant at 9FRmira. Attention: Cliff Lange, Director City of Carlsbad Library 1250 r�lmjkvenue, CarlsbaCA 92008 t 32. VALIDITY (IF 'LEASE. -The Lease shall be effective only a ter I enant has received a tully executed copy of this Lease from Landlord. Tenant should not assume that this leasing transaction has been completed or the Lease i has been executed by Landlord because of any oral representation or because Landlord has -negotiated Tenant's ' i initial check. 33. MONTHLY RENT. The rho, !: Iy rent shall be as follows: February 1, 1985 - January 2.1, 1987 (S1167.20) February 1, 1987 — January 31, 1988 ($1313.1.0) February 1, 1988 — January 31, 1989 ($1459.00) 34. LANDLORD CONSTRUCTION CONTRIBUTION. In addition to the Exhibit "B" items provided by Landlord, Landlord will contribute an additional improvement allowance of $6.00/ ; square foot. Also, tenant agrees that Landlord will construct the leased premises per I the plans and specifications, and that any cost over and above the Exhibit "B" items, along with the construction allowance, will be the responsibility of the tenant. } Landlord will procure three (3) bids, and both Lessor and Lessee will have the right to review said bids. t 35. "AS IS" CONDITION. Tenant hereby accepts space in an "as is" condition. Landlord has currently satisfied items :11-10 in the Exhibit "B" (attached). 1 36. SIGNAGE. Tenant shall not be granted any additional storefront signage with ; this lease. t THE PARTIES HAVE EXECUTED THIS LL) . THE DAY ,AND YEAR SET BELOW THEIR SIGNATURE: LANDLORD TENANT P:.AZA DE LA COSTA ASSOCIATES CSTy OF CARjZBAD r.IHRARY - 1A COSTA BRANCH c/o C.W. Clark, lnc. 77s0 r.. El Caasno Real 3211 Holiday Ct., 41200, 1A Jolla. CA 9203- Carlsbad, CA 9200E By By CITY OF CARLSBAD Date Date ; 'By David R. Bryant, General Partner By Mayor Date _ - Date (d) i Z,+ I 1 .1 % L P1 1 , j p ! '' CL j cl fq cm C'4', (n C-0 an uj j CC U, *131 :j Li EXHIBIT A Landlord's Initials Tenant's Initials LOCATION USE TENANT LANDLORD SHALL PROVIDE THE FOLLOWING IMPROVEMENTS: 1. Electrical Service Panel - 100 amp. service. 2. Restroom - One, located in an area designated by Landlord, provided with one toilet, one lavatory, ventilation, one standard light fixture, one electrical wall duplex nutlet, n:- heater-not-p�eu ed " dw4l 3. Ceiling - Finish ceiling in restroom @ 8'-0" above floor; suspended 241, x 48" acoustical tile over balance of ceiling area @ 9'-011 above floor. 4. Floor - Sheet vinyl floor and base Fir Landlord's selection in restroom, balance of floor area, uncolored concrete slab. 5. Walls - Unpainted masonry or unpainted textured drywall over stud as specified by Landlord, except restroom walls, ceiling and door which are to be painted (enamel). ' 6. Electrical Outlets - To meet Ccde requirements. 7. �, Lighting - Front to rear, recessed type, four tube fluorescent light fixtures - no lamps - panel switched - 15' to 25' wide store provided with two rows, front to rear; 30' to 40, store provided with three rows, front to rear. (Fixtures spaced @ 8'-0" center to center, front to rear.) 8. Telephone Outlet - One, located at rear of store unless otherwise designated by Tenant prior to commencement of construction. 9. Heating, Ventilating and Air Conditioning - Adequate refrigerated gas -electric air conditioning and heating (in other than dry cleaning plants and coin - operated laundries, restaurant food preparation areas and those businesses not normally air conditioned). 10. Store Front - Per Landlord's design. TENANT SHALL BE RESPONSIBLE FOR THE COST OF ALL IMPROVEMENTS NOT LISTED ABOVE. TENANT AGREES: 1. To deliver to Landlord within fifteen (15) days from Tenant's receipt of the executed lease, a drawing setting forth those improvements required by Tenant in addition to those improvements provided by Landlord. Upon receipt of Tenant's drawings, Landlord shall cause Improvement Plans to be ,prepared incorporating Landlord's and Tenant's improvements and an itemized cost breakdown of any additional improvements. Credit shall be allowed for those items for which Landlord is responsible if not utilized or substituted for. The amount of said credit to be determined by Landlord's Contractor. Tenant 2. Improvement Plans shall be prepared by 4.a,9dI arrangements are made, in writing, prior to the exec is lease. Landlord or Landlord's Architect shall info of the architectural fees involved before the Comm o the Improvement Plans, and Tenant is to pay the erectly for work performed and agreed to in preparation 3. Landlord shall then forward said Improvement Plans and Cost Breakdown to Tenant and Tenant shall within ten (10) days thereafter return said Improvement flans and Cost Breakdown, either indicating approval by signing two copies of each or indicating any additional revisions. Concurrently with Tenant's approval, Tenant shall pay to Landlord the cost of any additional improvements as indicated on the approved Cost Breakdown. EXHIBIT B Landlord's Initials Tenant's Initials