HomeMy WebLinkAbout1992-06-09; City Council; 11725; Lease Agreement with Carlsbad Equity PropertiesCLJeY OF CARLSBAD - AGENFQ BILL cl-s’
APPROVE LEASE AGREEMENT WITH
CARLSBAD EQUITY PROPERTIES
FOR SUlTES B AND C LOCATFD AT
2965 ROOSEVELT !ZXRF.ET
RECOMMENDED ACTION:
Adopt Resolution No. ?2-/62 authorizing the Mayor to execute the lease agreement
between the City of Carlsbad and Carlsbad Equity Properties.
ITEM EXPLANATION:
The Housing and Redevelopment Department was consolidated and relocated to leased
space at 2965 Roosevelt Street in April 1985. The original lease was for a term of
three years, with a renewal option for an additional three years, and was for Suite B
with 2000 square feet. The lease was subsequently amended to include Suite C with
1200 square feet bringing the total leased space to 3200 square feet. As a result of cost
of living increases, the rent has escalated from $1.00 per square foot in 1985 to the
current rate of $1.34. Since the expiration of the lease, Utilities and Maintenance staff
have been negotiating with the lessor to reduce the rent to reflect the change in market
conditions. In addition, they examined all available lease space in the Village area to
consider alternative locations. Staff was successful in renegotiating the lease and the
lessor has agreed to reduce the rent to $1 .OO per square foot. In addition, the lessor
has included a $4500 tenant improvement allowance to replace the carpeting, etc.
FISCAL IMPACX
The cost of the current lease is $4288 per month or $51,456 annually. The revised
lease, which is to take effect June 1, will cost $3200 per month or $38,400 annually
for a net savings of $13,056. Funds have been included in the Housing and
Redevelopment budget for this purpose.
EXHIBITS:
1. Resolution No. 72 - lbc
2. Lease Agreement
RESOLUTION NO. 92-162
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA APPROVING A NEW LEASE WITH
CARLSBAD EQUITY PROPER-S FOR SUITE B AND C LOCATED AT
2965 ROOSEVELT SlXEET, CARLSBAD, CALIFORNIA
WHEREAS, the City of Carlsbad, California has determined the need to
provide office space for the Housing and Redevelopment Department;
WHEREAS, after negotiating with the property manager and securing a new
lease, a reduction in the rental rate and a tenant improvement allowance;
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of
Carlsbad, California as follows:
1. That the above recitations are true and correct.
2. That the new lease agreement between the City of Carlsbad and
Carlsbad Equity Properties, attached hereto as Exhibit A is hereby
approved.
3. That the Mayor is hereby authorized to sign the lease agreement on
behalf of the City.
PASSED, APPROVED AND ADOPTED at a regular meeting of the City
Council of the City of Carlsbad, California, held on the 9th day of
June , 1992, and by the following vote, to wit:
AYES: Council Members Kulchin, Larson, Stanton and Nygaard
NOES: None
ABSENT: Council Member Lewis
CLAUDE A. L ANN J. KULCHIN, Mayor Pro-Tern
ATTEST:
Carlsbad Equity Properties, A General Partnership
City of Carlsbad California iherematler relerrea to as “Lanalara”~ an0
CO.MMERClAL LEASE
1 PARTIES (General Form)
~hts Lease Is maae and entered Into MHX Effective June 1. 1992 LXX
w by ana between
2 PREMISES (herematler relerred IO as “Tenant”)
Landlord hereby IeaSeS lo Tenant and Tenant hereby leases from Landlord. on the lerms and con&tlons heremaIler set lonh, lhat certain
real property and the butrdmg and other tmprOvemenlS located thereon srlualed In Ihe Chy of Carlsbad
County 01 San Diego Stale 01 California
2965 Roosevelt Street COmmOnly known as
and descrrbed as approximately 3200 square’“‘%%%” improved office space referred to as
Suite B and Suite C mere msen legal OIscrmon,
tsard real properly IS herematler called the “Premrses”).
3. TERM. The term 01 thts Lease shall be for thirty-six (36 1 months
and endmg on May 31 r 1QrJ5 Itmmlnlwafsl
4. RENT.
CommencIngon June i. 1993
unless sooner termmated as herematler provrded
Tenant shall pay ta Landlord as rent for the Premrses Ihe followtng sums per month. rn advance on the trrst day of each month Uurmg the term 01 thus Lease
XWMMXX#W#K v 9M9PXMXmXI~X~~~~~ Sum of three-thousand,two-hundred
If 3.200.00 ) dollars per month.
ease the sum 01
) dollars per monlh
wrlhout nohce or demand and wrlhoul any deduction. Otf+.el. or ibalemenl m iawlul money 01 the Unrled SlaleS 10 the LandlOrd al the aaoreSS Slated herein for notices or to such other persons or sucn otner place; ds the Landlord may desrgnale lo Tenant in wrihng
6. USE. Tenanl shall use ttu Pf@m~ses only tor General off-
and for no other purpose mtnout the Landlord’s prior wrrtlen consent
Tenant shall not 00. 8rmg of keep anythrng rn or about the Pfemses that ~111 cause a cancellatron ot any Insurance covering the Premises or the bullding In Whrch the Premtses are located. It the rate of any msurance carned by the Landlord IS Increased as a result pi Tenant s use. Tenant shall pay to Landlord wdnin ten (10) days
aher Wrl?len demafld from LandkJrd. the amount ol any Such rncf~se Tenant shall comply with all laws concerning the PremISeS or Tenant’s use Of the PremlSeS. includmg wdhout Iimilatmn. the obligatton at Tenant’s cost to alter, mamlam. or restore the Premisei m compliance and contormtty with all laws relalmg IO the
con&tic n. use. or occupancy ot the Premtses Dy Tenant durmg the term ot this tease. Tenant shall not use or permit Ihe use 01 the Premises in any manner that will
tend IO create WaStt Or a nutsance or, d there shall De rm?re than one tenant ol the building contaimng the Premises. whicn Shall unreaSOMDly OiSfurb any Other tenant Tenant hereby accepls Ihe Premises In their conditron exlstmg as of the date that Tenant possesses the Premtses. suopcl IO all applicable zoning. munlcfpal.
county and Slate laws. ordinances. regulations governmg or rcgulatmg the use ot the Premises and acc?oIs this Lease subtect thereto and 10 all matlers drscrosed
thereby. Tenant hereby acknowledges that neither the Landlord nor the Landlord’s agent has made any represenlalton or warranty to Tenant as to the sullablllly Of the Premises for the conduct 01 Tenant’s business.
7. TAXES.
(a) Real Property Taxes.
(b) Personal Properly Tues.
Tenant shall pay pnor to the debnpuency all taxes assessed against and levied upon the trade lixturcs. furnrshrngt. epurpmeht and other personal property Of Tenant contalned in the Premrses. Tenant shall endeavor to cause such trade lixtures. turnrshings and equipment and all Olher persona) Property t0 De aSSeSsed
and billed separately Iron? the property of tne Landlord. It any ot Tenant’s said personal propeny shall DC assesse8 with Landlord’s proarty. Tenant Shall gay 10 Landlord the taxes attributable to Tenant within ten (lo) days atter recerpt ol a written statement tram Landlord settrng forth the taxes appkcaole IO Tenant’s property 8. UTILITIES. Tenant shall make all arrangemtnls and pay ior all fia@xgar heat. light. power, telephone anrJ other utility SeNlceS suooIiea to lhe PrcmrSeS together With
any taxes thereon an0 tor atl connectron charges. Itmp~~Kff~ceKaKmn~##~p#fX~~K~lmrRnDtpeKKr:~el5llr##ARIAAP~~19RK
rwexrrcloam~lrKd6maP;~UIX)(I(QCT~)(wPu~PWdLradI~x 9. MAINTENANCE AND REPAIRS. (a) Landlord’s Ooligations. Except as prodded in Article 12, and except (or damaged caused Dy any neglrgenl or inienlional act or OmiSSrOn Of Tenant. Tenant’s agent% emP)oYeeS. or
rnwtees. Landlord at its sole COSI and expense shall keep in goad condition and repair the toundatrons. exterror walls, an0 exterror roof ol the Premises. Landlord shall also malntaln Ihe unexposed electrical. plumkng and sewage systems InchdIng. v;dhoul Iimdat~on. those porlions 01 lhe Systems lying uutsde the Premises: wmOow
frames. gutters and down SpMS on the Duilding, all weewalks. lan&capmg and other improvements lhaf are a parl of the Premises or ot which the PremeS Jre 3 part. The Landlord shall also maIntam the he.atmg, ventilatmg and air-coneltlonmg systems servicmg the Premises. LandlOrd SW reSurlaCe and reSlrW lhe ParkIng
area on Or adpcent to the Premises when necessary. b-dlord shall have thirty (30) days atter nolice born Tenant lo commence to perform Its oDllgatlOns under lhls
Article 9. excepf that Landbrd shall perform 11s obllgallons lmm&ately 11 the ndture of the problem presenls a hazard or emergency Sltuatlon. If the bndorD floes no’ perform Its Obltgallons wlthin the lime limit set lpflh In this paragraph. Tenant cdn perform said obhgatlons and shall have the right to De reimbursed for the amount ’
Tenanl actually expends In the perlormance ot Landlord’s obhgahons II Landlord does hot reimburse Tenant wlthm thirty (30) asp abr demand lrom - Twml c Sole remedv shall De lo msVutc -WI daa,nsr me Landlord and Tenam shalt nof nave rhe rtoh’ 10 wrthnold tfom future ‘enI ‘he Sums !efUn’ W
.
.
20 HOLOING OVER. It In0 Tenanl. wnlh Ihe Landbfd’S conscnl. remams In possession OI Ihe Prerrusa alter Ihe expuallon 01 IOrmlnaDOn 01 IhO lerm 01 lhls LCaSC. such possesston Dy Tenant Shall DO deemed lo DO a ItnanCy tram mOnln-lo-mOnlh al a renlal III In0 amount ol lhe last monthly renlal plus all Other charges payable hereunder. upon all Ihe prowsions of Ihis Lease applluble IO monlh~le-month tenancy.
21. EINOING ON SUCCESSORS AND ASSIGNS. The forms. ConUlDons and tOYenants of In6 Lease shall De Dmdmg upon and shall Inure to Ihe Denefil 01 each of the pat-Des hereto. lheu heus. personal represenlar~ves. successors an6 asslgns. 22 NOTICES. Whenever under IhIs Lease a provisKM IS made for any demand, noDce or declaratmft of any kmd. it shall De In wnling and sexed eilher personally or sent by reglslered or COrMed Unded Stales mall. pOStagO prepald. addressed al the addresses as sel forth DOlOw:
TO LANDLORD AT 2965 Roosevelt Street
Car- CA 97fX)fj
TO TENANT AT 1200 Carlsbad Village Drive
CA 92008
Such nolKc shall De deemed !o Be received vuhm lorlyetghl (48) hours lrom the Dme 01 matlmg. 11 maded as provided for in th!s paragraph.
23 LANOLORD’S RIGHT TO INSPECTIONS Landlord and Landlord’s agent shall have the rlghl lo enter the Premises al reasonable limes tw the purpose of inspecting same. showing Ihe same 10 prospective
purchasers or lenders. and makmg such alterations. repairs. tmprovements or addittons lo the Premises or lo the building of which the Premises are a parl as Landlord may deCm nKeSwq Of UeSlrable bUtlOrd my II any lqe place on 01 aboul the F’MIixJ any CrdiMry “For gale” sqns and Landlord may al any IMH during the last dne hundred IwenIy (120) days of the term ol lhls Lease place on or aDout the Rem!% any ordinary “For Rate cr Lease” ugns. all witbut reDate 01 rent or l&My lo Tenant.
24 CHOICE OF LAW This Lease shall De governed by Ihe laws 01 Ihe stale where the Prom&es are IocaterJ. 25. ATTORNEY’S FEES. It edher Landlord or Tenant DeCWnOS a party lo any litigatmn of arDitraDq concernmg ltus Lease. the Prermses, or the Dutldmg of other Imprq~ls in wfbch
the Premises are bcaled. by reason 01 any act or Qm~ss~gn ot the other party or 11s aulhqzed representatives. and not by reason of any act or omfsslon of the pucy Ihal becomes a parIy lo Ihal IitlgaliOn or any act or omlsslon ol its aulhonzed represenlallves. the party that causes the other party IO Deconle mvolved in the liti~ti $hJl
IX IlaDle to that party tar rCaSOnaDl0 attorney’s @IS and court costs mcurred Dy II m Ihe litigalmr. If either pany commences an action against me other party arlsmg out 01 or n connecllon w~lh lh~s Lease. the prevailing party shall De enluled to have and rq~f from the losmg parry reasonaDfe attorney s lees and costs of su~l
26 LANOLORO’S LIARICIlY. The term “Landlord” as used in Ihls Lease shall mean only the owner or owners a1 the time tn gueslion of the fee title or a Lessee’s interest in a ground lease of
In0 PrOmIS.%. and in ID0 WCnl Of any IranStCr 01 SuCn DIIC or interest. Landlord herein named (and in case ot any SuOsquenl transfers lo the then successor) shall De relieved from and after the dale 01 such Iranster of all liabihty In respect lo Landlord’s ObligaliOnS thoredItor lo De performed. The ODligalions contained in Itus Lease IO
De perlorpeu by Landlord snail De binaing upon the Landlord’s successors and assrgns. only during their respective periods of ownershtp. 27. WAIVERS. No wawer by Lanalora ot any Prowsbon nereol 511111 De deemed a wawef 01 any otner provision nerql or of any subseguenr Dreach Dy Tenant 01 the same or any Other prowslon Landlord’s COflSenI IO or aoproval 01 any act shall no1 DO deemed IO render unnecessary the Obtaining 01 Landlord’S COnfOnt IO or approval Ol any
suosquenl act oy Tenanl The acceptance 01 renl hereunaer Dy Landlord shall not De a waiver 01 any preceding breach Dy Tenant 01 any provision herqf. other than In0 failure 01 Tenant IO pay In0 ParliCular rent so aCCCpIOd. rOgardlOSS Of Landlord’s knOWlOdge Of such preceding breach al III0 lime Of IIS aCCOPlanCC Of SUCh renl. 28 INCORWRATION OF PRIOR AGREEMENTS This Lease contains all agreements 01 the parties with respect lo any matter mentioned herein. No prior agreemenl or understanding penainlng lo any such matIer Shall De CffCCllvC This LeaSO may De mOdit@ Only uI writing. an0 signed Dy the pdniCS IfI inlOrOSt al III0 IlmO 01 such mOdiliCaIlOn.
29. TIME Time IS 01 in0 essence of inI3 Lease
30 SEVERABILITY The unenlorceaDility Invaudlly or rllegalny Dt any prpwsion ol this Lease shall not render IDe olner prowslons herwl unentprceaDle. invalid Or illegal.
31 ESTOPPEL CERTIFICATES. Each party wuhm ten (10) days alter notice from the OlhCr pany. shall execule and dellver 10 Ino other party a CeRiDcale staling that lh~s Lease IS unmudlfied and In lull force and ellecl. or In tull lorce and ellecr as morl~ka. and slalmg the modilicallon The cenilitate snail also stale the amount of minimum monthly rent. IhC dales lo which renl has DM pald In IOvance. and Ihc amount 01 any security OeqSit OT prepal rent. II any. as well as afknOwlOdging that IhCrC are not. IO Ihal Party’s knowledge. any uncured detaults en the pan 01 tMpfh8r party. or specdylng such detaulfs. II any. wnlcn are claimed. Failure 10 deliver such a certilXa!e within IhC ten
( 10) day peruad shall De ConCluW upon me ham lading lo deliver me centhcate IO the Denellt al the party regueslmg Ihe cenihcale that lhls Lease IS in full tOrCc and etlect. that there are no uncurrd Oe~rults hereunaer. and has not Deen modified except as may De reOreSenlCd by the party rquesllng the CefllllCdle.
32 COVENANTS AN0 CONDlflONS. Each provision 01 lnls Luw p&rmaDle Dy Tenant shall De deemed Duln a covenant and a condillon
33 SINGULAR AN0 PLURAL. When reuuued Dy In0 Context 01 this Lease, the smgular shall include the plural.
34 JOINT AN0 SEVERAL OBLIGATIONS “Party’ shall mean Landlord and Tenant, and II more than one person or entuy IS the Landlord or Tenant. the OCligaUons imposed en that parly shall De pint and several.
term(s). If the panics agree on lhe minimum statrng the muumum monlhl
TENANT THE CIm OF CARLSBAD
ev Thomas M. Perlowski, Partner
Dated:
ADDENDUM
Addendum to lease dated June 1, 1992 between CARLSBAD EQUITY PROPERTIES, A
General Partnership, Lessor (Landlord), and the CITY OF CARLSBAD CALIFORNIA, Lessee
(Tenant).
37. TENANT IMPROVEMENTS;
a) Tenant is author&d to m-open a previously existing opening at the east end of
the north interior wall for the purpose of access between Suites B and C. Said
opening to be approximately 6 feet to 7 feet wide. Tenant is also authorized to
re-open the previous opening at the west end of the north interior wall.
b) Landlord agrees to provide the sum certain of $4500.00 to reimburse tenant for
the cost of new carpets and other improvements to be approved by landlord.
38. EARLY POSSESSION;
a) Tenant is currently occupying a portion of the premises which are the subject of
this lease. Said occupancy shall continue at the existing rental rate until the
effective date of this lease. As of the effective date of this lease, the prior lease
covering the currently occupied premises shall be terminated.
39. COST OF LIVING ADJUSTMENT;
The amount of the Base Rent (and the corresponding Monthly Installments of Base Rent) payable
hereunder shall be adjusted annually, commencing with the date twelve (12) months after the
Commencement Date (the “Adjusted Date”). Such adjustments shall be for the purpose of
reflecting the increase, if any, in the cost of living. Adjustments, if any, shall be calculated
based upon the United States Department of Labor, Bureau of Labor Statistics Consumer Price
Index for a.U Urban Consumers, L.A. - Long Beach Average, Subgroup, “All Items”
(1967 = 100) (the “Index”). The Index published as of the third month prior to the
Commencement date shall be considered the “Base”. In the event the Index is not published in
the third month prior to the commencement date then the second month prior to the
commencement date shall be the “Base”. On each Adjustment Date, the Base Rent shall be
increased by a percentage equal to the percentage increase, if any, in the Index over the Base as
of the third month (or second month if applicable) prior to each Adjustment Date (“Adjusted Base
Rent”). Notwithstanding any subsequent decrease in the Index, the Adjusted Base Rent shall not
be less than that rent paid after any preceding adjustment. When the Adjusted Base Rent payable
as of each Adjustment Date is determined, Lessor shall give Lessee written notice of such
adjusted Base Rent and the manner in which it is computed.
* -
If at any Adjustment Date the Index no longer exists in the form set forth above, Landlord may
substitute any substantially eqkalent official index published by the Bureau of Labor Statistics
or its successor. Landlord shall use any appropriate conversion factors to accomplish such
substitution. The substitute index shall then become the “Index” hereunder. In no event shall said increase be less then 4% per year or exceed 7% per year non-cumulative.
40. OPTION TO EXTEND;
If Tenant is not in default under the terms of this lease, Tenant shall have the option to extend
the term of this lease for three successive one year periods upon all the terms and conditions set
forth in this lease; except that, the monthly rent to be paid by Tenant to Landlord for each
extended term shall be computed by adding to the minimum monthly rental for the immediately
preceding period a sum obtained by multiplying said minimum monthly rental by a factor equal
to a percentage increase in the Consumer Price Index, (published by the United States
Department of Labor, Bureau of Statistics, Consumer Price Index for all Urban Consumers, L.A.
- Long Beach Average, Subgroup “All Items” (1967= IO)), equal to the percentage difference
between the Index as last published prior to the commencement of the preceding term of this
lease, and the Index last published immediately preceding the commencement of each successive
term.
Tenant shall exercise this option by delivery of written notice to Landlord not less than 90 days
prior to expiration of the preceding term of this lease of its election to extend the term hereof.
In no event shall the monthly rental for any additional period be below the monthly rental for
the preceding term of this rental,
In the event that the Consumer Price Index is no longer published at the time of the adjustment
period Landlord may substitute any substantially equivalent official index published by the Bureau
of Labor Statistics or its successor. Landlord shall use any appropriate conversion fktor to
accomplish said substitution. The substitute index shall then become the “Index” hereunder.
Landlord:
CARLSBAD EQUITY PROPERTIES
Tenant:
CITY OF CARLSBAD CALIFORNIA
Claude A. L
Date’
Attest:
ALETHA L. RAUTENKRANZ, City Clerk
Dated: 6/ lO/9L