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HomeMy WebLinkAbout1991-10-15; City Council; 11391; VETERANS MEMORIAL PARK AGRICULTURAL LEASE4‘- 4 .A c\ 0 g $91 .Q ? .. z G G $ 4 z 3 0 0 ( ClTpe>F CARLSBAD - AGENDQBILL ,, -5 AB# !I: 3 7 f DEPT. k MTG. IC-! 5 - c// AGRICULTURAL LEASE CITY A1 DEPT. !?Y- $? CITY Mc RECOMMENDED ACTION: &E: VETERANS MEMORIAL PARK City Council adopt resolution no. ‘1 ! c 3 ‘I ‘approving the lease agreement for 90-acres of Veterans Memorial Park (Macario) to B & T Farms, Inc. for agricultural purposes. ITEM EXPLANATION: The property at Veterans Memorial Park has previously been leased for agricultural production. It was leased from 1983 through 1989. At the end of that period, the lessee did not desire to renew the lease. The land has been vacant of agriculture use since late 1989. Recently, there has been an interest in farming this City property. Staff has prepared new lease documents which have been reviewed and approved by the City Attorney’s office. In addition, the Parks and Recreation Department has sent out a request for bids to the agricultural community. Although there were several inquiries, we received only one bid. B & T Farms Inc. did submit a bid of $300 per acre per year. The proposed term of the lease will be for three (3) years, renewable on a yearly basis. Agricultural activities are to be limited to areas that have historically been farmed. Native vegetation and environmentally sensitive areas are not to be disturbed. Steep slopes and hillside habitats are also not to be adversely impacted. It is estimated there are 90-acres of land available for agricultural usage. FISCAL IMPACT The bid received is for $300 per acre per year. This will result in $27,000 annually 01 $81,000 for the term of the lease if all 90-acres are farmed. EXHIBITS: 1. Resolution No. 9/’3’iLa. 2. Lease Agreement \ * T* L 1 2 3 4 5 6 7 8 9 10 11 12 l3 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 a 0 RESOLUTION NO. 91-340 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ACCEPTING THE BID AND AUTHORIZING THE LEASE OF PROPERTY AT VETERANS MEMORIAL PARK (MACARIO) FOR AGRICULTURAL PURPOSES. WHEREAS, the City of Carlsbad currently owns acreage within Macario Canyon to be developed as the future Veterans Memorial Park, and WHEREAS, the property will not be developed as a park site within the near future, and WHEREAS, the City has decided that a lease arrangement for certain property within Macario Canyon (Veterans Memorial Park) for agricultural use at this time would be in the best interest of the City of Carlsbad, and WHEREAS, the Parks and Recreation Department has requested bids to lease acreage at Veterans Memorial Park for agricultural purposes, and WHEREAS, one (1) sealed bid was received and reviewed in detail, and WHEREAS, the City Council has decided that bid submitted by B & T Farms, Inc. in the amount of $300 per acre per year for the annual amount of $27,000 to be the in the best interest of the City to accept, and WHEREAS, a Resource Management program was submitted to ensure fo proper natural resource management of the land in conjunction with agricultura use, //// //// 1- * 3 e< - 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 0 * NOW, THEREFORE, BE IT HEREBY RESOLVED by the City Council of the City of Carlsbad as follows: 1. 2. That the above recitations are true and correct. That the bid amount of $300 per acre per year submitted by B & T Farms, Inc. is hereby accepted. That City Manager, or his designated representative, are hereby authorized and directed to execute the lease attached hereto and made a part of. 3. PASSED AND APPROVED at a regular meeting of the City Council of Carlsbad on the 15th of October of 1991, by the following vote, to wit: AYES: NOES: None ABSENT: Council Members Lewis, Larson and Stanton Council Members Kulchin and Nygaard ATTEST: *eh (SEAL) e 0 - CITY OF CARLSBAD Flat Rate Lease (Veterans Memorial Park) (Veterans Memorial Park) Revised 7/12 H:\LIBRARY\UM\WPDATA\AGG\AGG91009.AD - 0 e LEASE OUTLINE PAGE SECTION PARAGRAPH Section 1 USES 1.01 Premises 1 1.02 Deletion of Portion of Leased Premises 1 1.03 Uses 1 1.05 Quiet Possession 2 1.06 Easements and Reservations 2 2.01 Commencement 3 2.02 Holdover 3 1 1.04 Related Council Action Section 2 TERM 3 3 2.03 Quitclaim and Surrender of LESSEE'S Interest 2.04 Termination of Lease Section 3 RENT 4 3.01 Time and Place of Payment 3.02 Rent 4 3.03 Delinquent Rent 7 7 3.04 Inspection of Records 4.01 Time is of the Essence: Provisions Binding 7 4.02 Assignment and Subletting 8 4.03 Encumbrance 10 4.04 Defaults and Remedies 12 4.05 Eminent Domain Section 4 ASSIGNMENT on Successors a Section 5 INSURANCE RISKS/SECURITY 5.01 Indemnity 14 14 5.02 Insurance It 5.03 Waste, Damage or Destruction Section 6 IMPROVEMENTS/ALTERATIONS/REPAIRS 6.01 Acceptance of Premises 6.02 Entry and Inspection and Channel Maintenance 6.03 Maintenance 6.05 Utilities 6.06 Liens 6.07 Taxes 6.08 signs 6.09 17 1; 1E 15 15 1: 2( 2( 6.04 Improvements/Alterations It Ownership of Improvements and Personal Property (Veterans Memorial Park) Revised 7/12 H:\LIBRARY\UM\UPDATA\AGG\AGG91009.AD e e SECTION PARAGRAPH PAGE Section 7 GENERAL PROVISIONS 7.01 Notices 21 7.02 Compliance with Law 21 7.03 CITY approval 22 7.04 Nondiscrimination 22 7.05 Partial Invalidity 22 7.06 Legal Fees 22 7.07 Number and Gender 22 7.08 Captions 22 7.09 Entire Understanding 22 7.10 Agricultural Provisions 23 7.11 Agricultural Operations 24 7.12 Noxious Weeds, Pests 24 7.13 Control of Livestock 24 7.14 Employee Housing Prohibited 25 Section 8 WARRANTY 8.01 Warranty 25 Section 9 SIGNATURES 9.01 Signature Page 26 Section 10 EXHIBITS Exhibit A 27 \ (Veterans Memorial Park) Revised 7/12 H:\LIBRARY\UM\WPDATA\AGG\AGG91009.AD * 0 0 CITY OF CARLSBAD FLAT RATE LEASE THIS LEASE AGREEMENT is executed between THE CITY OF CARLSBAD, a municipal corporation, hereinafter called ttCITYtt, and B & T Farms Co. Ltd. ,hereinafter called ItLESSEEtt. SECTION 1: USES 1.01 Premises. CITY hereby leases to LESSEE and LESSEE leases from CITY all of that certain real property situated in the City of Carlsbad, County of Sar Diego, State of California, described in Exhibit "A" attached hereto and by this reference made part of this agreement. Said real property i: hereinafter called the ttpremisestl or ltleasec premisestt. 1.02 Deletion of Portion of Leased Premises. In tht event any portion of the leased premises is no1 used by LESSEE for its highest and best use, the] CITY may, at CITY'S option, delete that portion o the leased premises not used by LESSEE from Sectioi 1.01, Premises, hereof. Provided, however, Sectioi 3, RENT, hereof, shall be adjusted downward by thc City Manager on an equitable basis. 1.03 Uses. It is expressly agreed that the premises consisting of approximately 90 acres, is leased t LESSEE solely and exclusively for the purposes o growing crops and for such other related o incidental purposes as may be first approved i writing by the City Manager and for no othe purpose whatsoever. LESSEE covenants and agrees to use the premises fc the above specified purposes and to diligent1 pursue said purposes throughout the term hereof Failure to continuously use the premises for sai purposes, or the use thereof for purposes nc expressly authorized herein, shall be grounds fc termination by CITY. 1.04 Related Council Actions. By the granting of th! lease, neither CITY nor the Council of CITY : obligating itself to any other governmental agenl board, commission, or agency with regard to ai other discretionary action relating to developmel H: \LI BRARY\UM\WPDATA\AGG\AGG91009.AD 1 (Veterans Memorial Park) Revised 7/12 0 e or operation of the premises. Discretionary actior includes, but is not limited to rezonings, variances, environmental clearances or any othei governmental agency approvals which may be requirec for the development and operation of the leasec premises. 1.05 Quiet Possession. LESSEE, paying the rent an( performing the covenants and agreements herein shall at all times during the term peaceably an( quietly have, hold and enjoy the premises. If CIT' for any reason cannot deliver possession of thc premises to LESSEE at the commencement of the term or if during the lease term LESSEE is temporaril dispossessed through action or claim of a tit1 superior to CITY'S, then and in either of SUC events, this lease shall not be voidable nor shal CITY be liable to LESSEE for any loss or damage resulting therefrom, but there shall be determine( and stated in writing by the City Manager of CITY < proportionate reduction of the minimum or flat ratc rent for the period or periods during which LESSE is prevented from having the quiet possession o all or a portion of the premises. 1.06 Easements and Reservations. a. CITY hereby reserves all rights, title an interest in any and all subsurface natura gas, oil, minerals and water on or within th premises. b. CITY reserves the right to grant and us easements or to establish and use rights-of way over, under, along and across the lease premises for utilities, thoroughfares, c access as it deems advisable for the publi good. c. CITY has the right to enter the premises fo the purpose of making repairs to or developin municipal resources and services. However, CITY shall not unreasonably c substantially interfere with LESSEE'S use of tl- premises and will reimburse LESSEE for damages, i any, to the permanent improvements, includir crops, located on the leased premises resultir from CITY exercising the rights reserved in thj section. Such reimbursement may include reduction in the rent proportionate to the amour of damage as determined by CITY. CITY will pay tl H:\LIBRARY\UM\UPDATA\AGG\AGG91009.AD 2 (Veterans Memorial Park) Revised 7/12, , 0 e costs of maintenance and repair of all CITY installations made pursuant to these reserved rights. SECTION 2: TERM 2.01 Commencement. Regardless of the date of execution by the City Manager, the term of this agreement shall be three (3) years commencing on July 1, 1991 and terminating June 30, 1994. 2.02 Holdover. Any holding over by LESSEE after expiration or termination shall not be considered as a renewal or extension of this lease. The occupancy of the premises after the expiration OL termination of this agreement constitutes a month- to-month tenancy, and all other terms ant conditions of this agreement shall continue in ful.' force and effect; provided, however, CITY shal: have the right to apply a reasonable increase ii rent to bring the rent to fair market value and tc terminate the holdover tenancy at will. 2.03 Quitclaim and Surrender of LESSEE'S Interest. A termination of this lease for any reason, LESSE' shall execute, acknowledge and deliver to CITY within five (5) days after written CITY demand, valid and recordable quitclaim deed covering all o the premises. The premises shall be delivered fre and clear of all liens and encumbrances, and in decent, safe and sanitary condition. At the expiration or earlier termination of thi lease, LESSEE shall surrender the premises to CIT free and clear of all liens and encumbrances except those liens and encumbrances which existe on the date of execution hereof, and in a decent safe and sanitary condition. In the case o termination of this lease by CITY prior to the en of the specified lease term, any liens ar encumbrances must be approved in writing by tl- City Manager. If LESSEE fails or refuses to deliver the requirc deed, the CITY may prepare and record a notic reciting LESSEE'S failure to execute this leaE provision and the notice will be conclusil evidence of the termination of this lease and a1 LESSEE'S rights to the premises. 2.04 Termination of Lease. Either party may terminal this lease at any time upon 120 days notice to tl 3 (Veterans Memorial Park) Revised 7/12, H :\LIBRARY\UM\WPDATA\AGG\AGG91009.AD c 0 e other. If at expiration of the 120 day time period LESSEE still has crops growing, LESSEE shall be permitted to continue raising and tending the crops and shall be permitted to harvest the crops. The right to harvest the crops shall not extend the term of the lease except that the provisions of this lease, other than the extension provision, shall apply. The right to raise, tend and harvest shall apply only to crops planted before notice tc terminate has been given. SECTION 3: RENT 3.01 Time and Place of Payment. Rent is due quarterll in advance on or before the first day of each net quarter. Checks should be made payable to the Cit) of Carlsbad and mailed or delivered to thc Financial Management Director, 1200 Carlsbac Village Drive, Carlsbad, California 92008. The place and time of payment may be changed at an! time by CITY upon thirty (30) days written noticc to LESSEE. Mailed rental payments shall be deemec paid upon the date such payment is postmarked b] the postal authorities. If postmarks arc illegible, the payment shall be deemed paid up01 actual receipt by the Financial Managemeni Director. LESSEE assumes all risk of loss an( responsibility for late payment charges if payment: are made by mail. 3.02 Rent. a. Rent Amount. The initial rent is $6,750 pe quarter. Said rent is subject to adjustment based on increases, if any, in the Consume Price Index (CPI) and in the fair market valu of the leased premises as hereinafte provided. b. (1) CPI Index Adjustments. At the end of th first year following the effective dat of the lease and at the end of every yea thereafter during the lease term, th rent shall be adjusted to reflec increases in the Consumer Price Inde (CPI) . The index used will be the CPI for "A1 Urban Consumerst1 for Los Angeles/Lon Beach/Anaheim, California. If this inde is no longer published, the index fo 4 (Veterans Memorial Park) Revised 7/12/ H:\LIBRARY\UM\WPDATA\AGG\AGG91009.AD 0 e adjustment will be the U.S. Department of Labor 1 s llComprehensive Official Index" most comparable to the aforesaid index. If a rental adjustment is calculated using an index from a different base year than 1967, which equaled a base figure of 100 for the CPI, the base figure used will first be converted under a formula supplied by the Bureau of Labor Statistics or its successor. If the Department of Labor indices are no longer published, another index generally recognized as authoritative will be substituted by agreement of CITY and LESSEE. If the parties cannot agree within sixty (60) days after demand by either party, a substitute index will be selected by the Chief Officer of the Regional Office of the Bureau of Laboi Statistics or its successor, notwithstanding continued ref erencc herein to rtCPI" in any event. Regardless of the index publicatioi dates, the effective date of the renf adjustment is as specified in thi: Subsection b. (1) CPI Index Adjustments Until the rent adjustment can b reasonably determined by the inde method, LESSEE shall continue to mak payments at the existing rental rate When the adjustment is determined, th balance of rents due at the adjusted rat will be paid to CITY within thirty (30 days. In no event shall the adjuste rent as established by the Consumer Pric Index be less than the rent in existenc immediately prior to the adjustment date (2) Index Adjustment Computation. The rer for each rental period following tl adjustment, until the next adjustment ( other rental determination as providc herein, shall be determined prior to tl date of adjustment by multiplying tl rent which is effective immediately pric to said adjustment by the I1adjustmel figure" established by the methc outlined in the following paragraph: provided, however, increases in the re shall not exceed six percent (6%) p H:\LIEIRARY\UM\WPDATA\AGG\AGG91009.AD 5 (Veterans Memorial Park) Revised 7/12 0 0 year nonaccumulative. The Itadjustment figure" shall bc established by dividing the llcurrent indexv1 by the "base figure", both a: defined herein: The "base figure" for the first sucl adjustment shall be a three-month average of index figures published by said CP: using the fourth, fifth and sixth ful: months preceding the effective date o this agreement. To illustrate, if the lease began in May the CPI figures for November (sixtl month) , December (fifth month) ani January (fourth month) preceding Ma would be averaged to establish the bas figure (Example 1). The "current indexv1 shall be a three month average of index figures publishe by said CPI. The three months to be use to establish said average shall be th fourth, fifth and sixth full month preceding the adjustment date. The "base figure1' for each successiv adjustment shall be the I1current index figure used in the last precedin adjustment period (Example 2). ExamPle 1 Current Index 114 - = 1.04 (Adjustment Figure Base Figure 110 Effective Rent x 1.10 = Adjusted Rent Example 2 Current Index 120 Base Figure 114 Effective Rent x 1.05 = Adjusted Rent The adjustment figure is then multiplied by tl- monthly rent from the preceding adjustment peric to determine the new rent. Using the foregoir examples, if the rent is now $1,000 per montk after the first adjustment it will be $1,040 PE month ($1,000 x 1.04). In the second adjustment j - = 1.05 (Adjustment Figure H:\LIBRARY\UM\WPDATA\AGG\AGG91009.AD 6 (Veterans Memorial Park) Revised 7/12/ 0 * will be $1,092 per month ($1,040 x 1.05). 3.03 Delinquent Rent. If LESSEE fails to pay the rent when due, LESSEE will pay in addition to thc unpaid rents, five percent (5%) of the delinquent rent. If the rent is still unpaid at the end 01 fifteen (15) days, LESSEE shall pay an additional five percent (5%) [being a total of ten percent (lo%)] which is hereby mutually agreed by thc parties to be appropriate to compensate CITY foi loss resulting from rental delinquency, includinc lost interest, opportunities, legal costs, and thc cost of servicing the delinquent account. In the event that the CITY audit, if applicable discloses that the rent for the audited period ha been underpaid in excess of five percent (5%) o the total required rent, then LESSEE shall pay CIT the cost of the audit plus ten percent (10%) pe: year on the amount by which said rent was underpaic in addition to the unpaid rents as shown to be duc CITY as compensation to CITY for administrativl costs and loss of interest as previously describe1 herein. LESSEE agrees to pay such amount an1 further agrees that the specific late charge represent a fair and reasonable estimate of th costs that CITY will incur from LESSEE'S lat payment. Acceptance of late charges and an portion of the late payment by CITY shall in n event constitute a waiver of LESSEE default wit respect to late payment, nor prevent CITY fro exercising any of the other rights and remedie granted in this lease. 3.04 Inspection of Records. LESSEE agrees to make an and all records and accounts available to CITY fc inspection at all reasonable times, so that CI? can determine LESSEE'S compliance with this lease These records and accounts will be made availabl by LESSEE at the leased premises and will b complete and accurate showing all income an receipts from use of the premises. LESSEE I failure to keep and maintain such records and mak them available for inspection by CITY is a breac of this lease and cause for termination. LESSE shall maintain all such records and accounts for minimum period of five (5) years. SECTION 4: ASSIGNMENT 4.01 Time is of the Essence: Provisions Bindins c Time is of the essence for all of tk Successors. (Veterans Memorial Park) Revised 7/12, 7 H:\LIBRARY\UM\UPDATA\AGG\AGG91009.AD .. 0 0 * terms, covenants and conditions of this lease and, except as otherwise provided herein, all of thc terms, covenants and conditions of this lease shal: apply to, benefit and bind the successors anc assigns of the respective parties, jointly an( individually. 4.02 Assisnment and Subletting. LESSEE shall not assigi this lease, or any interest therein, and shall no1 sublet the premises or any part thereof, or an; right or privilege appurtenant thereto, or suffe any other person, except employees, agents ani guests of LESSEE, to use or occupy the premises o any part thereof, without the prior written consen of the City Manager in each instance. Such consen by the City Manager shall not be unreasonabl withheld. A consent to assignment, subletting occupation or use by any other person shall not b deemed to be a consent to any subsequen assignment, subletting, occupation or use b another person. Any such assignment or sublettin without such consent shall be void, and shall, a the option of CITY, terminate this lease. Thi lease shall not, nor shall any interest therein, b assignable, as to the interest of LESSEE, b operation of law, without the written consent o the City Manager. llAssignmentll, for the purposes of this clause shal include any transfer of any ownership interest i this lease by LESSEE or by any partners principals, or stockholders, as the case may be from the original LESSEE, its general partners c principals. Approval of any assignment or sublease shall k conditioned upon the assignee or sublessee agreeir in writing that it will assume the rights ar obligations thereby assigned or subleased and tha it will keep and perform all covenants, conditior and provisions of this agreement which ar applicable to the rights acquired. 4.03 Encumbrance. Subject to prior consent by CITE which shall not be unreasonably withheld, LESS€ may encumber this lease, its leasehold estate ar its improvements thereon by deed of trust mortgage, chattel mortgage or other securit instrument to assure the payment of a promissol note or notes of LESSEE, upon the express conditic that the net proceeds of such loan or loans 1 devoted exclusively to the purpose of developir H:\LIBRARY\UM\WPDATA\AGG\AGG91009.AD 8 (Veterans Memoria[ Park) Revised 7/12, e m I. and/or improving the leased premises. However, 2 reasonable portion of the loan proceeds may bc disbursed for payment of incidental costs 01 construction, including but not limited to thf following: off-site improvements for service of tht premises; on-site improvements; escrow charges premiums for hazard insurance, or other insuranct or bonds required by CITY; title insuranct premiums; reasonable loan costs such as discounts interest and commissions; and architectural engineering and attorney's fees and such othei normal expenses incidental to such construction. Any subsequent encumbrances on the premises or 01 any permanent improvements thereon, must first havc the approval in writing of City Manager. Sucl subsequent encumbrances shall also be for thc exclusive purpose of development of the premises Provided, however, after the premises are full: developed in accordance with said Development Plai to the satisfaction of the City Manager, proceed: from refinancing or from such subsequen. encumbrances may be used to reduce LESSEE'S equit so long as there is also substantial benefit to thc CITY therefrom. LESSEE understands ani specifically agrees that the City Manager shal have the sole and absolute discretion to approve o disapprove any such proposed subsequent encurnbrancc including, but not limited to, amending the leasc to provide then current rents and provisions. In the event any such approved deed of trust o mortgage or other security-type instrument shoulc at any time be in default and be foreclosed, o transferred in lieu of foreclosure, the CITY wil accept the approved mortgagee or benef iciar thereof as its new tenant under this lease with a1 the rights, privileges and duties granted ani imposed in this lease. Any default, foreclosure or sale pursuant to saic deed of trust, mortgage or other securit instrument, shall be invalid with respect to thi lease without prior notice thereof to CITY. Up0 prior written approval by CITY, said mortgagee o beneficiary may assign this lease to its nominee if nominee is a reputable, qualified an( financially responsible person in the opinion o CITY. Any deed of trust, mortgage or othe security instrument shall be subject to all of th terms, covenants and conditions of this lease ani shall not be deemed to amend or alter any of th 9 (Veterans Memorial Park) Revised 7/12/5 H:\LIBRARY\UM\WPDATA\AGG\AGG91009.AD 0 0 .- ... terms, covenants or condition hereof. 4.04 Defaults and Remedies. a. Default. In the event that: (1) LESSEE shall default in the performance of any covenant or condition required by this lease to be performed by LESSEE and shall fail to cure said default within thirty (30) days following written notice thereof from CITY: or if any such default is not curable within thirty (30) days, shall fail to commence tc cure the default (s) within said thirty-da) period and diligently pursue such cure tc completion: or (2) LESSEE shall voluntarily file or havt involuntarily filed against it any petitio1 under any bankruptcy or insolvency act or law or (3) LESSEE shall be adjudicated a bankrupt; or (4) LESSEE shall make a general assignment for thi benefit of creditors; then CITY may, at its option, without furthe: notice or demand upon LESSEE or upon any perso claiming rights through LESSEE, immediate1 terminate this lease and all rights of LESSEE an of all persons claiming rights through LESSEE t the premises or to possession thereof; and CITY ma enter and take possession of the premises Provided, however, in the event that any defaul described in Section 4.04a.(l), Default an Remedies, hereof is not curable within thirty (30 days after notice to LESSEE, CITY shall no terminate this lease pursuant to the default i LESSEE immediately commences to cure the defaul and diligently pursues such cure to completion. In the event that there is a deed of trust c mortgage on the leasehold interest, CITY shall giv the mortgagee or beneficiary written notice of tl default(s) complained of, and the same mortgagee c beneficiary shall have thirty (30) days from SUC notice to cure the default(s) or, if any sU( default is not curable within thirty (30) days, I commence to cure the default(s) and diligent: pursue such cure to completion. The thirty-dz period may be extended during such time i 10 (Veterans Memorial Park) Revised 7/12, H:\LIBRARY\UM\WPDATA\AGG\AGG91009.AD .- 0 0 a- mortgagee or beneficiary pursues said cure wit1 reasonable diligence. b. Remedies. If the mortgagee or beneficiary shall bt required to exercise its right to cure saic default (s) through litigation or througl foreclosure, then CITY shall have the option of thc following courses of action in order that thc default(s) may be expeditiously correction: (1) CITY may correct said default(s) and chargi the costs thereof to the account of LESSEE which charge shall be due and payable on th date that the rent is next due afte presentation by CITY to LESSEE and mortgage or beneficiary of a statement of said costs. (2) CITY may correct said default(s) and pay th costs thereof from the proceeds of an insurance fund held by CITY, CITY and LESSE or by CITY and mortgagee or beneficiary, o CITY may use the funds of any faithfu performance or cash bond on deposit with CITY or CITY may call on the bonding agent t correct the default(s) or to pay the costs o correction performed by or at the direction o CITY. CITY may terminate this lease as to the right of LESSEE by assuming or causing th assumption of liability for any trust deed c mortgage. LESSEE agrees to assume and pay ar and all penalties or bonuses required by tk beneficiaries, trustees or mortgagees as condition for early payoff of the relate obligations by CITY. CITY may, as 2 alternative, substitute for the terminate LESSEE a new LESSEE reasonably satisfactory t the mortgagee or beneficiary. Any reasonabl costs incurred by CITY in releasing to a nc tenant shall be the responsibility of tk terminated LESSEE and LESSEE hereby agrees t reimburse CITY for any such costs. (3) Should the default(s) be noncurable by LESSEE, thc any lender holding a beneficial interest in tl leasehold, whose qualifications as an assignee ha7 been approved by CITY, shall have the absolul right to substitute itself to the estate of LESS1 hereunder and to commence performance of th. lease. If such mortgagee or beneficiary shall gi. notice in writing of its election to so substitui H:\LIBRARY\UM\WPDATA\AGG\AGG91009.AD 11 (Veterans Memorial Park) Revised 7/12 .. 0 a .. itself within the thirty-day period after receivin! written notice by CITY of the default, and thc default, if curable, is cured by such mortgagee 01 beneficiary, then this lease shall not terminatt pursuant to the default. In that event, CITY expressly consents to the substitution an( authorizes the mortgagee or beneficiary to perforr under this lease with all the rights, privilege: and obligations of LESSEE, subject to cure of thc default, if possible, by mortgagee or beneficiary LESSEE expressly agrees to assign all its interes. in and to its leasehold estate to mortgagee o beneficiary in that event. c. Abandonment bv LESSEE. Even though LESSEE ha breached the lease and abandoned the property, thi lease shall continue in effect for so long as CIT does not terminate this lease, and CITY may enforc all its rights and remedies hereunder, includin but not limited to the right to recover the rent a it becomes due, plus damages. d. Waiver. Any CITY waiver of a default is not waiver of any other default. Any waiver of default must be in writing and be executed by th City Manager in order to constitute a valid an binding waiver. CITY delay or failure to exercis a remedy or right is not a waiver of that or an other remedy or right under this lease. The use o one remedy or right for any default does not waiv the use of another remedy or right for the Sam default or for another or later default. CITY' acceptance of any rents is not a waiver of an default preceding the rent payment. CITY ar LESSEE specifically agree that the propert constituting the premises is CITY-owned and held i trust for the benefit of the citizens of the Cit of San Diego and that any failure by the Cit Manager or CITY staff to discover a default shal not result in an equitable estoppel, but CITY shal at all times, subject to the applicable statute c limitations, have the legal right to require tl cure of any default when and as such defaults ai discovered or when as the City Council directs tk City Manager to take action or require the cure c any default after such default is brought to tl attention of the City Council by the City Managc or by any concerned citizen. Eminent Domain. If all or part of the premises ai taken through condemnation proceedings or undc threat of condemnation by any public authority wil 4.05 H:\LIBRARY\UM\WPOATA\AGG\AGG91009.AD 12 (Veterans Memorial Park) Revised 7/12 0 e .. the power of eminent domain, the interests of CITY and LESSEE (or beneficiary or mortgagee) will be as follows: a. In the event the entire premises are taken, this lease shall terminate on the date of the transfer of title or possession to the condemning authority, whichever first occurs. b. In the event of a partial taking, if, in thc opinion of CITY, the remaining part of the premises is unsuitable for the lease operation, this leasc shall terminate on the date of the transfer 01 title or possession to the condemning authority, whichever first occurs. c. In the event of a partial taking, if, in thc opinion of CITY, the remainder of the premises ir suitable for continued lease operation, this least shall terminate in regard to the portion taken 01 the date of the transfer of title or possession tc the condemning authority, whichever first occurs but shall continue for the portion not taken. Thc minimum rent shall be equitably reduced to reflec' the portion of the premises taken. d. Award. All monies awarded in any such taking shal belong to CITY, whether such taking results i diminution in value of the leasehold or the fee o both: provided, however, LESSEE shall be entitle to any award attributable to the taking of o damages to LESSEE'S then remaining leasehol interest in installations or improvements o LESSEE, including crops. CITY shall have n liability to LESSEE for any award not provided b the condemning authority. e. Transfer. CITY has the right to transfer CITY' interests n the premises in lieu of condemnation t any authority entitled to exercise the power o eminent domain. If a transfer occurs, LESSEE shal retain whatever interest it may have in the fai market value of any improvements placed by it c the premises in accordance with this lease so lon as such rights do not unreasonably or substantiall interfere with LESSEE'S operations. f. No Inverse Condemnation. The exercise of any CI'I right under this lease shall not be interpreted 2 an exercise of the power of eminent domain ar shall not impose any liability upon CITY fc inverse condemnation. , H :\LIBRARY \UM\UPDATA\AGG\AGG91009.AD 13 (Veterans Memorial Park) Revised 7/12) -1 0 a c SECTION 5: INSURANCE RISKS/SECURITY 5.01 Indemnity. LESSEE shall at all times relieve, indemnify, protect, and save CITY and any and all of its boards, officers, agents and employees harmless from any and all claims and demands, actions, proceedings, losses, liens, costs, judgments, civil fines, and penalties of any nature whatsoever in regard to or resulting from the USE of the premises, including but not limited tc expenses incurred in legal actions, death, injury, or damage that may be caused directly or indirect11 by: a. any unsafe or defective condition in or on tht premises of any nature whatsoever which may exisi by reason of any act, omission, neglect, or any usc or occupation of the premises; b. any operation, use or occupation conducted on thc premises : c. any act, omission, or negligence on the part o LESSEE, its employees, agents, sublessees invitees, licensees; or d. any failure by LESSEE to comply or secur compliance with any of the lease terms o conditions. 5.02 Insurance. LESSEE shall take out and maintain a all times during the term of this lease th following insurance at its sole expense: a. Public liability and Property Damaqe Insurance i the amount of not less than ONE MILLION DOLLAR ($1,000,000) Combined Single Limit Liability wit an occurrence claims form, if available. Thi policy shall cover all injury or damage, includin death, suffered by any party or parties from act or failures to act by CITY or LESSEE or k authorized representatives of CITY or LESSEE on c in connection with the use or operation of tl- premises. b. Fire, Extended Coveraqe, and Vandalism Insuranc policy on all insurable property on the premises j an amount to cover 100 percent of the replacemer cost. Any proceeds from a loss shall be payabl jointly to CITY and LESSEE. The proceeds shall 1 placed in a trust fund to be reinvested 2 rebuilding or repairing the damaged property. I H:\LIBRARY\UM\UPDATA\AGG\AGG91009.AD 14 (Veterans Memoria( Park) Revised 7/12) e * .- .. there is a mortgage or trust deed on the leasehold in accordance with Section 4.03, Encumbrance, hereof, the proceeds may be paid to the approvec mortgagee or beneficiary so long as adequatc provision reasonably satisfactory to CITY has beer made in each case for the use of all proceeds fox repair and restoration of damaged or destroyec improvements on the premises. c. Condition. All insurance policies will name CIT'J as an additional insured, protect CITY against an! legal costs in defending claims, and will no1 terminate without sixty (60) days prior writtei notice to CITY. All insurance companies must bt satisfactory to CITY and licensed to do business ii California. All policies will be in effect on 0: before the first day of the lease, except "tours( of construction fire insurance" shall be in forcc on commencement of all authorized construction 01 the premises, and full applicable fire insurancc coverage shall be effective upon completion of eacl insurable improvement. A copy of the insurancc policy will remain on file with CITY during thi entire term of the lease. At least thirty (30 days prior to the expiration of each policy, LESSE shall furnish a certificate(s) showing that a ne or extended policy has been obtained which meet the terms of this lease. d. Modification. CITY, at its discretion, may requir the revision of amounts and coverages at any tim during the term by giving LESSEE sixty (60) day prior written notice. CITY'S requirements shall b designed to assure protection from and against th kind and extent of risk existing on the premises LESSEE also agrees to obtain any additiona insurance required by CITY for new improvements, i order to meet the requirements of this lease. e. Accident Reports. LESSEE shall report to CITY an accident causing more than TEN THOUSAND DOLLAR ($10,000) worth of property damage or any seriou injury to persons on the premises. This repor shall contain the names and addresses of th parties involved, a statement of the circumstances the date and hour, the names and addresses of an witnesses and other pertinent information. f. Failure to Comply. If LESSEE fails or refuses t take out and maintain the required insurance, c fails to provide the proof of coverage, CITY he the right to obtain the insurance. LESSEE shal H:\LIBRARY\UM\WPDATA\AGG\AGG91009.AD 15 (Veterans Memorial Park) Revised 7/12/ .- e e < .. reimburse CITY for the premiums paid with interest at the maximum allowable legal rate then in effect in California. CITY shall give notice of the payment of premiums within thirty (30) days ol payment stating the amount paid, names of thc insurer(s) and rate of interest. Saic reimbursement and interest shall be paid by LESSEI on the first (1st) day of the month following thc notice of payment by CITY. Notwithstanding the preceding provisions of thi2 Subsection f., if LESSEE fails or refuses to takf out or maintain insurance as required in thi: lease, or fails to provide the proof of insurance CITY has the right to declare this lease in defaul' without further notice to LESSEE and CITY shall bc ,entitled to exercise all legal remedies in thj event of such default. 5.03 Waste, Damaqe or Destruction. LESSEE agrees tl give notice to CITY of any fire or other damag that may occur on the leased premises within te (10) days of such fire or damage. LESSEE agree not to commit or suffer to be committed any wast or injury or any public or private nuisance, t keep the premises clean and clear of refuse an obstructions, and to dispose of all garbage, trash and rubbish in a manner satisfactory to CITY. I the leased premises shall be damaged by any caus which puts the premises into a condition which i not decent, safe, healthy and sanitary, LESSE agrees to make or cause to be made full repair o said damage and to restore the premises to th condition which existed prior to said damage: or at CITY'S option, LESSEE agrees to clear and remov from the leased premises all debris resulting fro said damage and rebuild the premises in accordanc with plans and specifications previously submitte to CITY and approved in writing in order to replac in kind and scope the operation which existed prio to such damage, using for either purpose th insurance proceeds as set forth in Section 5.02 Insurance, hereof. LESSEE agrees that preliminary steps towar performing repairs, restoration, or replacement c the premises shall be commenced by LESSEE withi thirty (30) days, and the required repair: restoration, or replacement shall be completE within a reasonable time thereafter. CITY mE determine an equitable deduction in the minim1 annual rent requirement for such period or perioc H:\LIBRARY\UM\UPDATA\AGG\AGG91009.AD 16 (Veterans Memorial Park) Revised 7/12, .. 0 a c .a that said premises are untenantable by reason of such damage. SECTION 6: IMPROVEMENTS/ALTERATIONS/REPAIRS 6.01 Acceptance of Premises. By signing this lease, LESSEE represents and warrants that it ha: independently inspected the premises and made al: tests, investigations, and observations necessar: to satisfy itself of the condition of the premises LESSEE agrees it is relying solely on sucl independent inspection, tests, investigations, an( observations in making this lease. LESSEE furthe: acknowledges that the premises are in the conditio1 called for by this lease, that CITY has performec all work with respect to the premises, and tha LESSEE does not hold CITY responsible for an defects in the premises. 6.02 Entry and Inspection and Channel Maintenance. CIT reserves and shall always have the right to ente said premises for the purpose of viewing an ascertaining the condition of the same, or t protect its interests in the premises, or t inspect the operations conducted thereon. In th event that such entry or inspection by CIT discloses that said premises are not in a decent safe, healthy, and sanitary condition, CITY shal have the right, after ten (10) days written notic to LESSEE, to have any necessary maintenance wor done at the expense of LESSEE, and LESSEE hereb agrees to pay promptly any and all costs incurre by CITY in having such necessary maintenance wor done, in order to keep said premises in a decent safe, healthy, and sanitary condition. Further, i at any time CITY determines that said premises ar not in a decent, safe, healthy, and sanitar condition, CITY may its sole option, withou additional notice, require LESSEE to file with CI? a faithful performance bond to assure promr correction of any condition which is not decent safe, healthy and sanitary. Said bond shall be i an amount adequate in the opinion of the CITY t correct the said unsatisfactory condition. LESSE shall pay the cost of said bond. The right reserved in this section shall not create ar obligations on CITY or increase obligatior elsewhere in this lease imposed on CITY. In addition to the above, CITY or any contractor c subcontractor representing CITY shall have tl right to enter the premises for the purpose ( H:\LIBRARY\UM\UPDATA\AGG\AGG91009.AD 17 (Veterans Memorial Park) Revised 7/12, _. 0 ,- .- conducting maintenance operations in the Agua Hedionda Creek. Such maintenance operations, whick are for flood control purposes, involve thc excavation of excess sand from the channels, removing excess material from the premises, shapinc the channel banks and, if deemed necessary by CITY, constructing sedimentation and/or catch basins ir the channels. All such maintenance work shall bc in accordance with plans and specifications approved by CITY and shall be accomplished in E manner so as to minimize interference with LESSEE': operation of the leasehold. Proceeds from the salc of any excess sand shall belong solely to CITY. Anything to the contrary herein notwithstanding CITY shall not be obligated to provide any channe: maintenance whatsoever and LESSEE agrees to holc CITY harmless and indemnify CITY for any damage: resulting from failure to maintain the channels Furthermore, LESSEE agrees that the CITY ma: maintain the Agua Hedionda Creek channel up to < maximum width of 600 feet without any reduction i: rent payable by LESSEE to CITY. Provided, however if productive farm land is taken in connection wit: channel maintenance, the rent shall be adjusted b, the City Manager to equitably reflect the value o the property taken. 6.03 Maintenance. Except as hereinafter provided LESSEE agrees to assume full responsibility an cost for the operation and maintenance of th premises throughout the term. LESSEE will perfor all such repairs and replacements necessary t maintain and preserve the premises in a decent safe, healthy and sanitary condition satisfactor to CITY and in compliance with all applicable laws Appropriate codes and standards of CITY, state an federal agencies shall be observed in a1 maintenance, repairs and replacements on th premises. 6.04 Improvements/Alterations. No improvements structures, or installations shall be constructe on the premises, and the premises may not k altered by LESSEE without prior written approval k the City Manager. Further, LESSEE agrees tha desiq major structural or architectural alterations to approved improvements, structures or installations may not be made on the premise . without prior written approval by the City Manag6 and that such approval shall not be unreasonabl withheld. This provision shall not relieve LESS€ of any obligation under this lease to maintain tl' 18 (Veterans Memorial Park) Revised 7/12] H:\LIBRARY\UM\UPDATA\AGG\AGG91009.AD .. 0 e 6 .* premises in a decent, safe, healthy, and sanitary condition, including structural repair and restoration of damaged or worn improvements. CITk shall not be obligated by this lease to make ox assume any expense for any improvements 01 alterations. 6.05 Utilities. LESSEE agrees to order, obtain, and pal for all utilities and service and installatior charges in connection with the development anc operation of the leased premises. 6.06 Liens. LESSEE shall at all times Save CITY fret and harmless and indemnify CITY against all claim: for labor and materials in connection wit1 operations, improvements, alterations, or repair: on or to the premises and the costs of defendinc against such claims, including reasonablc attorney's fees. If improvements, alterations, or repairs are madl to the premises by LESSEE or by any party othe than CITY, and a lien or notice of lien is filed LESSEE shall within five (5) days of such filin either: a. take all actions necessary to record a vali release of lien, or b. file with CITY a bond, cash, or other securit acceptable to CITY sufficient to pay in ful all claims of all persons seeking relief unde the lien. 6.07 Taxes. LESSEE agrees to pay, before delinquency all taxes, assessments, and fees assessed or levie upon LESSEE or the premises, including the land any buildings, structures, machines, equipment appliances, or other improvements or property c any nature whatsoever erected, installed c maintained by LESSEE or levied by reason of th business or other LESSEE activities related to tk. leased premises, including any licenses or permits LESSEE recognizes and agrees that this lease mz create a possessory interest subject to propert taxation, and that LESSEE may be subject to tk payment of taxes levied on such interest, and thz LESSEE shall pay all such possessory intere: taxes. LESSEE further agrees that payment for suc taxes, fees and assessments will not reduce ar rent due CITY. 19 (Veterans Memorial Park) Revised 7/12, H:\LIERARY\UM\WPDATA\AGG\AGG91009.AD .. 0 e L 6.08 Sians. LESSEE agrees not to erect or display an] banners, pennants, flags, posters, signs decorations, marquees, awnings, or similar device! or advertising without the prior written consent o CITY. If any such unauthorized item is found 01 the premises, LESSEE agrees to remove the item a' its expense within 24 hours notice thereof by CITY or CITY may thereupon remove the item at LESSEE' cost. 6.09 Ownership of Improvements and Personal Property. a. Any and all improvements, trade fixtures structures and installations or additions t the premises now existing or constructed o the premises by LESSEE shall at leas expiration or termination be deemed to be par of the premises and shall become, at CITY' option, CITY'S property, free of all liens an claims except as otherwise provided in thi lease. b. If CITY elects not to assume ownership of a1 or any improvements, trade fixtures structures and installations, CITY shall s notify LESSEE thirty (30) days prior t termination or one-hundred-eighty (180) dab prior to expiration, and LESSEE shall remo\ all such improvements, structures ar installations as directed by CITY at LESSEE' sole cost on or before lease expiration c termination. If LESSEE fails to remove ar improvements, structures, and installations E directed, LESSEE agrees to pay CITY the ful cost of any removal. c. LESSEE-owned machines, appliances, equipmer (other than trade fixtures), and other iter of personal property shall be removed 1 Lessee by the date of the expiration ( termination of this lease. Any said iter which LESSEE fails to remove will 1 considered abandoned and become CITY property free of all claims and liens, or CI' may, at its option, remove said items l LESSEE'S expense. d. If any removal of such personal property ' LESSEE results in damage to the remaini improvements on the premises, LESSEE agrees repair all such damage. H:\LIBRARY\UM\WPDATA\AGG\AGG9?009.AD 20 (Veterans Memorial Park) Revised 7/12 I. 0 e ,- .- e. Any necessary removal by either CITY or LESSEE which takes place beyond said expiration or termination thereof shall require LESSEE to pay rent to CITY at the rate in effect immediately prior to said expiration or termination. f. Notwithstanding any of the foregoing, in the event LESSEE desires to dispose of any of its personal property used in the operation of said premises upon expiration or termination of this lease, then CITY shall have the first right to acquire or purchase said personal property. SECTION 7: GENERAL PROVISIONS 7.01 Notices a. Any notice required or permitted to be giver hereunder shall be in writing and may bt served personally or by United States mail postage prepaid, addressed to LESSEE at tht leased premises or at such other addres: designated in writing by LESSEE: and to CIT’ as follows: City Manager 1200 Carlsbad Village Drive Carlsbad, CA 92008 Copies to: Parks and Recreation Director 1200 Carlsbad Village Drive Carlsbad, CA 92008 Utilities and Maintenance Director 2075 Las Palmas Drive Carlsbad, CA 92009 or to any mortgagee, trustee, or beneficiar as applicable, at such appropriate addres designated in writing by the respective party b. Any party entitled or required to receiv notice under this lease may by like notic designate a different address to which notice shall be sent. 7.02 Compliance with Law. LESSEE shall at all times i the construction, maintenance, occupancy ar 21 (Veterans Memorial Park) Revised 7/12/ H:\LIBRARY\UM\UPDATA\AGG\AGG91009.AD .. e 0 - .- operation of the premises comply with a1 applicable laws, statutes, ordinances, an regulations of CITY, County, State and Federa Governments at LESSEE'S sole cost and expense. I addition, LESSEE shall comply with any and a1 notices issued by the City Manager or hi authorized representative under the authority o any such law, statute, ordinance, or regulation. 7.03 CITY ApDroval. The approval or consent of CITY wherever required in this lease, shall mean th written approval or consent of the City Manage unless otherwise specified, without need fa further resolution by the City Council. 7.04 Nondiscrimination. LESSEE agrees not t discriminate in any manner against any person c persons on account of race, marital status, sex religious creed, color, ancestry, national origir age or physical handicap in LESSEE'S use of tl- premises, including, but not limited to tl- providing of goods, services, facilities privileges, advantages, and accommodations, and tk obtaining and holding of employment. 7.05 Partial Invalidity. If any term, covenant condition or provision of this lease is four invalid, void or unenforceable by a court c competent jurisdiction, the remaining provisior will remain in full force and effect. 7.06 Lecral Fees. In the event of any litigatic regarding this lease, the prevailing party shall I: entitled to an award of reasonable legal cost: including court and attorney's fees. 7.07 Number and Gender. Words of any gender used . this lease shall include any other gender, ai words in the singular number shall include tl plural, when the tense requires. 7.08 Captions. The Lease Outline, section headings, ai captions for various articles and paragraphs sha not be held to define, limit, augment, or descril the scope, content, or intent of any or all par. of this lease. The numbers of the paragraphs a pages of this lease may not be consecutive. Sui lack of consecutive numbers is intentional a shall have no effect on the enforceability of th lease. 7.09 Entire Understandinq. This lease contains t H:\LIBRARY\UM\WPDATA\AGG\AGG91009.AD 22 (Veterans Memorial Park) Revised 7/12 ** 0 e .. -.. entire understanding of the parties. LESSEE, b3 signing this agreement, agrees that there is nc other written or oral understanding between thc parties with respect to the leased premises. Eack party has relied on its own examination of thc premises, advice from its own attorneys, and thc warranties, representations, and covenants of thc lease itself. Each of the parties in this leasc agrees that no other party, agent, or attorney ol any other party has made any promise representation, or warranty whatsoever which is no1 contained in this lease. The failure or refusal of any party to read thc lease or other documents, inspect the premises, anc obtain legal or other advice relevant to thi transaction constitutes a waiver of any objection contention, or claim that might have been based o these actions. No modification, amendment, o alteration of this lease will be valid unless it i in writing and signed by all parties. 7.10 Aqricultural Provisions. LESSEE shall use standar agricultural practices in growing, tending an harvesting said crops and shall not use th property in such a manner as to constitute nuisance to adjoining property owners or lessees LESSEE shall comply with the followin requirements: a. Only drip type irrigation shall be used. b. All plastic material and debris shall k completely removed from the property at th completion of the lease. c. No aerial application of pesticides c fertilizers shall be permitted. d. A llResource Management System1I which is detailed report on what crops will be growr how crops will be irrigated, what pesticide will be used, what type of fertilizer will k used and the application methods of pesticidc and fertilizers, shall be submitted ar approved by the Parks and Recreation Directc prior to commencement of agriculturz operations of the land. No planting, grading, spraying, cultivating ( other disturbance whatsoever shall be allowt in the wetlands area, riparian area, rare ai e. H:\LIBRARY\UM\UPDATA\AGG\AGG91009.AD 23 (Veterans Memorial Park) Revised 7/12 .* 0 0 .L OL endangered plant species area, archaeological area as shown on Exhibit E attached hereto and incorporated in this reference. f. Erosion shall be controlled and monitored bi the Universal Soil Loss Equation provided b\ U. S. Soil Conservation Service. ~f erosio1 exceeds three tons per acre CITY may terminatc this lease. g. No soil is to be left uncropped. h. No land with an average slope of 30 percent 0: more shall be farmed. i. All pesticide application shall be approve1 and supervised by the county agricultura office, with all necessary permits obtainel from county in advance. A complete record o fertilization and pesticide application mus be kept and made available upon request b CITY. j. Access roads shall be limited to thos approved by the Parks and Recreation Direct0 and shall not cause erosion problems. k. The Lagoon and Wetlands areas shall b monitored by LESSEE for erosion and pesticid and organic phosphate pollution. Inspection of area may be conducted by California Fis and Game Department, U.S. Soil Conservatic Service, University of California or CITY a any time without prior notice to LESSEE. LESSEE agrees to abide k the conditions for agricultural operations SE forth herein. Failure of LESSEE to cease or CUI any unauthorized practice within 30 days aft€ written notice to do so shall constitute at tl option of CITY, an immediate termination of tk lease. 7.12 Noxious Weeds, Pests. LESSEE shall take propc corrective action, to the satisfaction of CITY, 1 prevent the infestation of noxious weeds and pest: 7.13 Control of Livestock. The premises shall 1 adequately fenced to control livestock without co! to CITY and in a manner satisfactory to CIT’ LESSEE shall be solely responsible for all damac 7.11 Aqricultural Operations. H:\LlBRARY\UM\WPDATA\AGG\AGG91009.AD 24 (Veterans Memorial Park) Revised 7/12 '. + a * ,b % e. of any kind resulting from livestock leaving said premises. 7.14 Employee Housinq Prohibited. LESSEE shall not provide housing for employees or any other persons on the property. LESSEE shall not permit LESSEE'S employees or any other persons to reside upon the property in any way. SECTION 8: WARRANTY 8.01 Warranty The CITY does not warrant that thc premises are suitable for the agricultural purpose for which they are leased. //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// SECTION 9: SIGNATURES 25 (Veterans Memorial Park) Revised 7/12 H:\LIBRARY\UM\UPDATA\AGG\AGG91009.AD 6 II) e ’. L c ** 9.01 Siqnature Paqe IN WITNESS WHEREOF, this Lease Agreement is executed by CITY, acting by and through its City Manager, and by LESSEE, acting by and through its lawfully authorized officers. THE CITY OF CARLSBAD BY City Manager Date LESSEE : By: Title Printed Name Date By : Title Printed Name Date APPROVED as to form and legality this day of 1991. BY City Attorney EXHIBIT A: Property Description 26 (Veterans Memorial Park) Revised 7/12 H: \LIBRARY\UM\WPDATA\AGG\AGG91009.AD -. . .- . .. - . - , , ,- __. - - -- .. - -"- .. 0. m. 9 ', 9% kN 0 0 J .I EXHIBI'