HomeMy WebLinkAbout1999-11-16; City Council; 15494; Lease Agreement 2965 Roosevelt StreetCITY OF CARLSBAD - AGENM BILL
AB# 15,494 TITLE:
APPROVE LEASE AGREEMENT WITH CARLSBAD
MTG. 1 l/l 6/99 EQUITY PROPERTIES FOR SUITES B AND C LOCATED AT 2965 ROOSEVELT STREET DEPT. PW/GS
RECOMMENDED ACTION:
Adopt Resolution No. 99-497 authorizing the Mayor to execute the lease
agreement between the City of Car&bad and Carlsbad Equity Properties.
ITEM EXPLANATION:
In 1985, the Housing and Redevelopment Department was consolidated and
relocated to lease Suite B (2000 square feet) at 2965 Roosevelt Street. In 1992, the
lease was amended to include Suite C (1200 square feet) and a rental rate
adjustment for leasing 3200 square feet of office space. The current lease has
expired and staff has been negotiating with Carlsbad Equity Properties on a new
lease term and rental rate.
A new three (3) year lease agreement has been agreed to by staff and Carlsbad
Equity Properties. The City has the option to extend the term of the lease for three
(3) successive one year periods. The new rent that will be charged to the City in the
first year is $4,090 per month, an increase of 12.5% from the City’s current rent. The
City has not had a rent increase since 1995. A new lease agreement has been
prepared and is attached hereto as Exhibit 2. The new lease has been reviewed and approved as to form by the City Attorney’s office.
FISCAL IMPACT:
The new lease agreement, which will be effective on December 1, 1999, will increase
the City’s rent to $4,090 a month, or $49,080 annually. The rent for years two and
three will be adjusted to reflect an increase, if any, in the cost of living. Funds are
included in the Housing and Redevelopment Department for this purpose.
EXHIBITS:
1. Resolution No. 99-497 authorizing the Mayor to execute the lease
agreement between the City of Carlsbad and Carlsbad Equity Properties.
2. Lease Agreement
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RESOLUTION NO. 99-497
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROVING A LEASE AGREEMENT WITH CARLSBAD
EQUITY PROPERTIES FOR SUITES B AND C LOCATED AT 2965
ROOSEVELT STREET, CARLSBAD CALIFORNIA
WHEREAS, the City of Carlsbad, California has determined the need to provide office
space for the Housing and Redevelopment Department; and
WHEREAS, staff has negotiated with the property manager and secured a new three-
year lease with rent in year one of $4,090, and year two and three to be adjusted to reflect an
increase, if any, in the cost of living.
NOW, THEREFORE, BE IT RESOLVED, BY THE City Council of the City of Carlsbad as
follows:
1. That the above recitations are true and correct.
2. That the new Lease Agreement between the City of Carisbad and Carlsbad Equity
Properties attached hereto as Exhibit 2 is hereby approved.
3. That the Mayor is hereby authorized to sign the lease agreement on behalf of the
City.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Carlsbad at its
regular meeting held on the 16th dayof November , 1999, by the following vote, to wit:
AYES: Lewis, Hall, Finnila, Nygaard, Kulchin
All-EST:
(SEAL)
2-
CuMMERCIAL LEASE
Exhibit 2
City of Carlsbad. California (hereinaller relerred IO as “Landlord”) and
2. PREMISES. (hereinalter referred lo as “Tenard”).
Landlord hereby leases lo Tenanl and Tenant hereby leases horn Landlord. on Ihe terms and condilions herelnaller set lorlh, lhal cerlaln
real property and the bullding and olher improvements located thereon siluated in Ihe City 01 Carlsbad
coumy of San Diego , State of California
2965 Roosevelt Street , commonly known as
and descrlbsd as aptwoximately 3200 square ‘!%8’??“improved office space referred to as
Suite B and Suite C IherD Insert *gal o~scrwmll
[said real prooerlv Is hereinafter called Ihe “Premises”1. _--- 3. TERtit. ' . The term of this Lease shalt be lor thirty-six ( 36 1 months December 1, 1999
and ending on Nowimber 30,. 2002
. commencing on . lmanlhslyears, . unless sooner lsrminaled as hereinaller provided. 4. RENT. ” Tenanl shall pay lo Landlord as renl for Ihe Premises the following sums per month. in advance on the first day 01 e,aCh monlh during Ihe term of this Lease:
the sum 01 four-thou&d, ninty dollars
(5 4,090 .oo ) dollars per monlh:
Ourlng Ihe
) dollars per monlh.
.
Rem IOr any period durinp Ihe Ierm 01 lhis Lease which is lor less lhan one I I) monlh Shall be a prorala porlion 01 Ihe monthly mslalimenl. Rent shall be payable wilhoul nollce or demand and wilhoul any deduclion. ollsel. or rbalemenl in lawlul money ot lhe Uniled States lo the Landlord al Ihe address staled herein lor nolices or lo such olher persons or such other places as the Landlord may designate to Tenanl in writing.
6. USE. Tenant shall use the Premises only for General offices
and Ior no other purpose wllhout the Landlord’s prior wrillen consent. Tenant shall nol do, bring or keep anything In or about the Premises lhal will cause a Cancellallon of any Insurance covering Ihe Premises or Ihe bulldlng In which Ihe Premises are localed. If Ihe rate of any Insurance carried by Ihe Landlord is increased as a result of Tenant’s use, Tenanl Shall pay to Landlord wilhin len (IO) days alter wrihen demand born Landlord, Ihe amount 01 any such increase. Tenanl shall comply with all laws concerning Ihe Premises or Tenant’s use 01 lhe Premlses, including wllhoul llmhalion. Ihe obligalion al Tenant’s cosl lo aller. maintain, or restore Ihe Premises In compliance and conlormlly with all laws relaling IO Ihe condilh n, use. or occupancy OI Ihe Premises by Tenanl during Ihe term OI Ihis Lease. Tenanl snali nol use or permil Ihe use OI Ihe Premises In any manner lhal will lend lo create Waste or a nUlMCe or, If lhere shall be more than one lenanl 01 the building conlaining lhe Premises. which shall unreasonably disturb any olher tenant. Tenant hereby accepts the Premises in lhelr condilion existing as of the date lhal Tenant possesses the Premises, subject to all applicable zoning, munlclpal, county and slate laws, ordinances, regulallons governing or regulating the use ot the Premises and accepts this Lease subject thereto and to at1 matters dlsctosed thereby. Tsnanl hereby acknowledges lhal neither the Landlord nor Ihe Landlord’s agenl has made any representation or warranly to Tenant as 10 the sultablllly of the Premlses for the conducl of Tenant’s business. 7. TAXES.
(b) Personal Properly Taxes. Tenant shall pay prlor lo the delinquency ati :oxes zssesred against snd leviid upo)i ihe’i;atie lixrures. turnishings. equipment and olher personal property of Tenanl contalned In the Premlses. TenanI shall endeavor lo cause such trade Iixlures, lurnishings and equipment and all olher personal property to be assessed and billed separately IrOm lhe property 01 Ihe Landlord. II any 01 Tenant’s said personal property shall be assessed with Landlord’s properly. Tenanl shall pay to Landlord the taxes allribulable lo Tenant wllhln ten (10) days alter receipl of a writlen sla!emenl Irom Landlord selling lorth the laxes applicable to Tenanl’s property. 8. UTILITIES.
(a) Landlord’s Obllgallons. Excepl as provided in Atllcle 12. and except for damaged caused by any negligent or lntenflonat actor omission of Tenanl, Tenant’s agents, employees, or invltees, Landlord al Its sole cost and expense shall keep In Qood condillon and repalr Ihe Ioundallons. exlertor walls, and extarlor roof of the Premises, Landlord shalt also malnlaln the unexposed etectrlcal. plumbing and sewage syslems Including, wllhout IlmitaIlon, those por?lOns of the systems lylng outside the Premlses; wlndow frames, Qutlers and down spouts on the buildlng. all sldewalks. landscaping and other Impr0vements lhal are a par? ol the Prernlses or of which the Premlses are a part. The Landlo& shall also malnlaln the heallng. venlllallng and alr%ondlllonlng sysrems setvlcing Ihe Premltes. Landlord shall resurfaw and restrlpe the parklng area on or adjacenl lo the Premlses when necessary. Landlord shall have lhkly (30) days alter nolice lrom Tenanl lo commenoe lo perIorm Its obllgatlons under Ihls Mlcle 9, axcept thal Lendtord shall periorm Its obllgatlons immediately II lhe nature ol the problem presenls a hazard or emergency SltUatlon. I Ihe Landlord does not perform Its obllgailons wlthln the lime llmlt set Imh In Ihls paragraph, Tenant can perlorm sald obllgatlons and shall have Ihe rlQht to be relmburred for Ihe amount lhal Tenant acluatty expends In the perlomance of Landlord’s obllgaIlons. II Landlord does noI reimburse .TenanI Wllhln Ihly (30) days after demand Irom Tenant, Tenanl’s sole remedy shall be 10 InsrllUlS sull against the Landiofd, and Tenanl shall nol have the rlghl lo wllhhold lrkn IuturO renl the sums Tenant has expended,
wo~corrs fonM era-c.oMMtrtCUt LEASE Iomwrr form)- Tkn lI)nOd km b ~IUWO IQ IM IyuCN aW*ns ((YouIuIti b IM W WkJIIO H0wN.f. b0bfD ra, ripn. I-NO U. IN In JI Wnkr. W make
nav. 4.85 @I995 WOLCOTTS. INC. fork8 cbal11 *~)IOVU cnmgw I# umwwc ano ncessafy IO wr pancvUl umwa. ConsJc J b*)rr ii p, w.u IM brm’~ kumr br plr purport 800 UU. ,. .
.L2. .::. .
I b) ttnmt’r.Obngtiknr. uYbct to the pmwl~brtS ol Sub-pareo~~~n (a) rbove and Arilcle 12, tenant St Tenant’s sole cost and expense shall keep In good order, condillon and repalr the RemlSU and #very put thereof, lnoludlng, dthout fbnltrtlon, all Tenant’s penonal propeny, fldurss, slgnr, Store trontr, plate glass, show windows, doon, Intarlor walls, Interkr cdllng, md AghUng tacltltiaS. If TOnant fall8 to perform TOnant’s obligations as stated hsraln, Lendlord may at Its optlon (bul shall not be requlreri to), enter the Premlsss after ten (10) days Prior to wrhten notlce to Tenant, put the Mama in good order, condltlon and repalr, and the costs thereof together wfth lntsmst thereon at the raia of ten (lO%] percent per annum shall become due and payable as addltlonal rental to Landlord together with Tenant’s nexl rental Installmsnt. 10. ALTERATIONS AND ADDITIONS. (a) Tenant shall not, wlthout the Landlord’s prior written consent, make any altaratlons, Improvements or addltlons In or about the Premises except for non. StrUdural work which does nOt exceed SlJJGG.00 In cost. As a condillon to gMng any Such consent, the Landlord ma alterattons, Improvements, Or addltlOrk3 at the explratlon of the term, and to restore the Premises to thefr prior condltlon by g Is raqulre the Tenant to remove any SUCh ng Tenant thirty (30) days w&en nottce prtOr 10 the exphatlon Of the term that LandlOrd requires Tenant to remove any such atteratlons, improvements or addltlons that Tenant has made to,the Premises. II Landlord so eleCtS, Tenant at Its sole Cost shall restore the Premises to the condltlon deslgnated by Landlord In Its elsctlon before the last day of the term of the Lease. Before commanclng any work ralatlng to the alterations, additions. of improvements aflectlng the Premises, Tenant shall notlty Landlord In wrlttng 01 the expected dale Of the commencement of such work so that Landlord can post and record the appropriate notlcas of non-responslblllty to protect Landlord from any mechanic’s Hens, materialman Hens, or any other Ilens. In any event. Tenant shall pay, when due, all claims for labor and materlals furnlshed to or for Tenant at or for use In the PremlSeS. Tenant shall not permit anymechanic’s Hens or malerlalmen’s llens to be levlsd agalnst the Premlsss for any labor or material furnlshed lo Tenant or clalmed lo have been furnlshed to Tenant or Tenant’s agents or contractors In connectlon wlth work of any character performed or clalmed to have been performed on the Premfses by or at the dlrectlon of Tenant. Tenant shall have the right to assess the validity of any such Hen If, Immediately on demand by Landlord. Tenant procures and records a Hen release bond meellng the tequlrements of Callfornla Clvll Code Sectlon 3143 and shall provide for the payment of any Sum that the Clalmant may recover on the claim (together wtlh the costs of suit, It It IS recovered In the actton). unless the Landlord requires their removal as set forth above, all alleratlons. Improvements or addttlons which are made on the Premises by the Tenant shall become the paragraph, P roperty Of the Landlord and remaln upon and be surrendered wllh the Premlres at the axplratlon of the term. Notwlthstandlng the provIsIonS of this enant’s trade fixtures, furntture, equlpment and other machinery, other than that which Is alllxed to the Premises so that It cannot be removed without material or StrUCtUral damage to the Premises, shall remaln the property of the Tenant and removed by Tenant at the explratlon of the term 01 this Lease. 11. INSURANCE; INDEMNITY. (a) Fire Insurance. Landlord at Its cost shall malntaln durlng the term of lhls Lease on the Premlsss a policy or pollcles of standard flre and extended coverage insurance 4. Sald Insurance pollcles shall be Issued In the names 0f Landlorr+ea& -.
such Dollcy shall be used by Tenant for the replacement of personal property or the restoratlon of
(c) Walver oi Subrogation. Tenant and Landlord each WalVeS any and all rlghls ot recovery againsl the olher, or against the OliiCers, employees, agents, and representatives 01 the other, for loss ol or damage to such walvlng party or Its property or the property p! olhers under Its control, where such loss or damage Is Insured agalnst under any Insurance policy in force al the llme of such loss or damage. Each party shall cause each Insurance policy obtalned by It hereunder lo provide that the Insurance company waives all rlght ot recovery by way 01 subrogation against either party In connection wllh any damage covered by any such policy. (d) Hold Harmless. Tenant shall lndemnlfy and hold Landlord harmless Horn and against any and all claims arlslng from Tenant’s use or occupancy of the Premlses or from the conduct OfIts business or from any actlvlty, work. or thlngs which may be permitted or sullered by Tenant In or about the Premises lncludlng all damage, costs, attorney’s fees, expenses and llabllltles Incurred In the defense of any claim or acllon or proceeding artslng therefrom. Except IOr Landlord’s wllllul or QrOSSly negllgent conduct, Tenant hereby assumes all risk of damage to property or injury lo person In or about the Premises lrom any cause, and Tenant hereby waives all claims In respect thereof agalnst Landlord. (I)) Exemption 01 Landlord horn Llablllty. Except lor Landlord’s wlllful or Qrosslv neQllQen1 CondUCt. Tenanl herebv aarees that Landlord shall not be liable IOr anv InlUlv to Tenant’s business or loss Of InCOme ihersfrom or for damage to the goDds,wares, merchandise. or olherpriperty of Tenant, Tenant’s employees, Invite&, ‘customers or any olhar person In or about the Premises: nor shall Candlord be liable for InJury to Ihe person of Tenant, Tenant’s employees, agents, contractors, or Invltees, whether such damage or Injury Is caused by or results from fire, steam, electrlclfy. gas, waler or rain, or from the breakage, leakage, obstruction or other defects of plpas, sprinklers, wlras, appliances, Premlses or upon ot 1 lumblng, air-condlflonlng, or Ilghting Hxtures, or lrom any other cause, whether such damage results from COndltlOnS arlslng upon the er portlons of the bulldlng In which the Premises are a part, or lrom any other sources or places. Landlord shall not be liable lo Tenant for any damages arlslnQ from any act or neglect of any other tenanl, If any, ot Ihe building In which the Premises are located. 12. DAMAGE OR DESTRUCTION. (a) Damage - Insured. If, during the term of lhls Lease, the Premlses and/or the building and other lmprovemenls In which the Premises are located are totally or patilally destroyed rendertng the PmmlSeS totally or parllally lnacceslble or unusable, and such damage or destruction was caused by a casualty covered under an Insurance policy required to be malntalned hereunder, Landlord shall restore the Premises and/or the bullding and other Improvements In which the Premlses are located Into substanllally the same condltlon as they were In lmmedlalely before such damage or deslructlon, provlded that lhe restoratlon can be made under the exlstlng laws and can be ccmpleted wlthln one hundred twenty (120) worklng days after the dale of such destruction or damage. Such destructlon or damage shall not termlnate thls Lease. If the rOStOrallOn cannot be made In sald 120 day period, then within lilleen (15) days aller lhe partles hereto determlne that the restoratlon cannot be made In the tlme stated In this paragraph, Tenant may lermlnale lhls Lease Immediately by glving notice to Landlord and the Lease will be deemed cancelled as of the date cl such damage or destructlon. II Tenant falls to lerminale this Lease and Ihe restoralion Is permltted under the exlsllng laws, Landlord, at Its OptIOn, may lermlnate lhls Lease or restore the Premises and/or any other tmorovements In which the Premises are located wlthln a reasonable time and lhls Lease shall continue In full force and eHec1. If the exlsllng laws do no<permil the’ resloratlon, eilher pany can terminate thls Lease lmmedlately by glvtn notice to the other pa*. Notwllhstanding the above, if the Tenant Is the lnsurmg pany and il the Insurance proceeds received by Landlord are not sulflclent to e tect such repair, Landlord 8 shall glve nottce to Tenant of the amount required In addltion to the insurance proceeds to eliect such repair, Tenant may, at Tenant’s option, contrlbute the required amount, but upon tallure to do so wlthln thirty (30) days following such notice, Landlord’s sole remedy shall be, at Landlord’s optlon and wllh no IlabIlIty to Tenant, to cancel and termmale this Lease. II Tenant shall contribute such amounl lo Landlord withln sald thlny (30) day period, Landlord shall make such repalrs as soon as reasonably possible and thls Lease shall continue in lull force and etfect. Tenant shall in no event have any right to reimbursement for any amount so contrlbuled. (b) Damage - Uninsured. In the event that the Premlses are damaged or destroyed by a casualty which Is not covered by the llre and extended coverage Insurance which Is requited to be carried bv the Dartv deslanated In Anlcle 1 lfa) above. then Landlord Shall reslore lhe same: provided that II the damaae or deStruCtIOn Is lo an extent pleater than ten (16%) percent 01 the then replacemeni cost of ihe Improvements on the Prenlses (exciuslve ol Tenant’s trade iixtures and equlpment and sxcl~slve of toundatlons and tootlngs), then Landlord may elect not lo restore and to terminate lhls Lease. Landlord must give to Tenant wrltten nollce of its IntentIOn not to restore wlthln thlrtv (301 davs tram the date of such damaae or destructlon and, It not alven. Landlord shall be deemed to have elected to restore and In such event Shall repalr any damigd as soon as reasonably possible. in the even1 that Landlord a&Is to give such notlce of Landlord’s lntenllon to cancel and termlnate this Lease, Tenant shall have the right, wlthln ten (10) days after receipt of such notlce, to glve wrlllen notlcs to Landlord of Tenant’s lntentlon to repalr such damage at Tenant’s expense, wllhout relmburscment from Landlord, In which event lhe Lease shall continue in lull iorce and eliect and Tenant shall proceed to make such repalrs as soon as reasonably possible. If the Tenant does not give such notice within such 10 day period, lhls Lease shall be cancelled and be deemed termlnaled as 01 the date 01 lhe occurrence ot such damage or destruction. {c) Damage Near the End of the Term, It the Premises are totally or parttally destroyed or damaged during lhe last twelve (m months al the term of this Lease, Land!ord may, aiLandlord’s Option, cance! ant term!nz!e !h!s Laze as of the date o: thic cause 01 such damaoe bv otven written notice to Tenanlol Landlord’s etectlon to do so wtthln 30 davs atter the dale of the occurrence of such damage: provided, however, that, If the damags or destructton occurs wlthln the last 12 monlhs of the term and If wllhln tltteefi (15) days after the date of such damaoe or destructlon Tenant exercises any optlon to extend the term provided hereln, Landlord shall restore ths Fremlses It o@llgated IO do SD as orovlded In suboaraoraoh lal or lb) above. (d) Abatemenioi Rent: ’ If the Premises are partially or totally destroyed or damaged and landlord or Tenant repalrs or restores them pursuant to the proVtstons of lhls Article 12, the rent payable hereunder for the period during which such damage, repalr or restoratlon continues shall be abated In proportlon to the degree to which Tenant’s reasonable use of the Premises Is tmoatred. Exceol lor the abalement ol rent. II any. Tenant shall have no claim agalnst Landlord lor any damages suftered by reason oi any such , _ damage, destructlon, reDaIr or restoration, (e) Trade Fbctures and Equlpment. If Landlord Is required or sleets lo restore the Premises as provided In lhls Article. Landlord shall not be required to restore Tenant’s Improvements, trade flxtures, equipment or alteratlons made by Tenant, such excluded items belng the sole responslbillty 01 Tenant to restore hereunder., (I) Total Ogstructlon-Multllenant BulldIng. If the Premises are a part of a multltenanf bulldlng and there Is destruction to the Premises and/or the bullding 01 which the Premises are a part that exceeds lllty (50%) percent 01 the then replacement value of the Premises and/or the building In which the Premises are a pan from any Cause whether or not covered by the Insurance described In Article II above, Landlord may, at Its optlon, elect to terminate thls Lease (whelher or not the Premises are destroyed) so long as Landlord terminates the leases of all olher tenants In the bulldlng 01 which the Premises are a pat?. etfective as of the date Of such damage or dostrucllon.
13. CONDEMNATION. It lhe Premlsas or anv wrllon-lhereol arc laken bv Ihc Dower ol emlnenl domain. of sold bv Landlord under lhc lhrcal 01 cXcrCIS0 01 sald DWW (all ol whlth Is _ _ _ _ _ hersln rclerred lo a$ *‘con&&&on’*), lhls Lease shalilerminale as lo Ihc parI so lakkn as 01 Ice dale the condemning aulhorlly lakes IlIlc or ~osscssion, whlchevcr occurs llrsl. II more man Iwanly (20%) Perccnl cl Ihe Iloor area 01 any builoinps on Ihe Premlaes, or more than lwcnly (20%) pcrccnl 01 Ihc land area al the Premises
that Tcnanl shall be cnlllled lo any award IOr loss ol or damage lo Tcnanl’s IraOc llalures and removable personal prOperly. Each party hereby waives the ProvIsIons of Code ol Civil Procedure 1265.130 allowlno clhcr parly lo pellllon lhc Supcrlor Court lo lcrmlnale lhls Lease In lhc even1 01 a danlil Iaklnb 01 lhe Prcmiset. Rent shall be abated or rbduccd during lhe perlod lrom Ihc dale 01 lakingp bul all olher obllgallons 01 Tenanl rnder lhls Lease shall remain In lull lorce and ellccl~c
14. ASSIGNMENT AND SUBLETTING. Tenant shall not voluntarily or by operallon 01 law assign, Iransler. sublet, morIgage, or olherwlsc transler or cncumber’all orany parI ot Tens& Interest In this Lease or In the Premises wllhoul Landlord’s prior wrlllen consent which conscnl shall not be unreasonably wllhheld. Any allemplad assignment, lranslcr, mortoaoc. encumbrance. or sublclllna wllhout such conscnl shall be void an0 shall ConsliluM a breach al lhls Lease. (I, _ - : ei ,
fe ,u 11’
Regardless of Landlord’s consenl. no sublelling or assignmenl shall release Tenanl 01 Tenanrs obllgallon lo pay lhc rent and lo perform all other obllgallons lo be perlormed by Tenanl hereunder lor Ihe term 01 lhis Lease. The acceptance 01 renl by Landlord from any olher person Shall nOl be deemed a waiver by Landlord of any provision hereof. Consenl 10 one asslgnmenl or sublelling shall nol be deemed consenl 10 any subscqucnl asslgnmenl or subleltlng. 15. DEFAULT. (a) Evenls al Deraull. fhc occurrence 01 any one or more 01 the lollowing evenls shall conslilule a delaull an0 breach al lhis Lease by Tenant: (1) Failure lo pay rent when due, II lhc lailure conlinues lor live (5) days aller writlen nolice has been given IO Tenant. (2) Abandonmenl and va&IliOn ol lhe Premises (lailurc lo occupy Ihe Premises lOr kX!rleen (14) conseculivc days Shall bc deemed an abandonment and vacalion). (3) Fallure lo perlorm any olhcr provlsion of lhis Lease if lhe failure to periorm Is nol cured wilhln fhlny (30) days alter wrillen nollce lhereol has been glvcn lo Tenant by Landlord..11 the delaull cannol reasonably De cured wilhin said lhirly (30) day period, Tenanl shall not be In default under this Lease II Tenant commences lo cure Ihc delaull wilhln lhe 1hlRy (30) day period and dillgenlly prosecules Ihe same lo complellon. (4) The making by Tcnanl of any general assignmenl, or general arrangement lor Ihe benefit ol credllors; the lillng by or agalnsl Tenanl 01 a pellllon lo have Tenanl adludged a bankrupl or a pelllion for reorganizalion or arrangemenl under any law relaling lo bankruptcy unless the same Is Olsmlsscd wlthln slxly (60) days: Ihe appolnlmenl 01 a lruslec or fecclver lo lake possession of subslanlially all of Tenanl’S aSSeIS locale0 ar lhe Premlses or of Tenant’s Interest In the Lease, where poss8sslOn Is no1 reslored lo Tenanl withln lhlrly (30) days: or Ihe altachmenl. execulion or other judlclal selrurc al subsrantlally all of Tenant’s assels located al the Premises or ol Tenant’s Inlercst In lhc lease, where such seizure is nol Oescharged wilhin lhirly (30) days. Nollces glvcn under this paragraph shall specily Ihe alleged delaull and (he applicable lease provisions, and shall demand thal Tsnanl perlorm Ihe provlslons of lhis Lease ol pay the rcnl lhal Is in arrears as lhc case may be, wilhln Ihe applicaole perlod of lime. No such notice shall be deemed a lorfcllurc or a Iermlnallon of thls Lease unless Landlord so clecls In Ihc notlcc. (b) Landlord’s Remedies. The Landlord shall have lhc lollowIng remedies il Tenant commiIs a defaull under lhls Lease. These remedies are no1 exclusive bul are cumulallvc and In addlllon 10 anv remedies now or herealler allowed bv law. ‘Landlord can conllnuc this Lease In fuli lorce and elfect. and Ihe Lease will continue In ellecl so long as Landlord does nol lermlnale TcnanI’s rtghl IO pOssesSIon, and lhc Landlord shall have Ihe rlghl lo collecl renl when due. Ouring the period lhal Tenanl Is in delaulr. Landlord can enlcr Ihc Premises and rclel them, or any pat-l of [hem, lo lhlrd parlles for Tenanl’i accounl. Tcnanl shall be liable immedialely lo Ihe Landlord lor all cosls Ihe landlord Incurs In relelllng the Prcmlses, iniludlng, without limllalion, brokers’ COmmlsSlOnS, expenses 01 remodeling Ihe Premises required by Ihe relelling, an0 like costs. Retelllog can be IO1 a period shorter or longer lhan lhc remaining lerm 01 lhls Lease. Tcnanl shall pay lo Landlord Ihe renr due under lhis Lease on Ihe dales Ihc rsnl is due, less lhe rent Landlord recelvcs lrom any rclclling. No acl by Landlord allowed by lhls paragraph shall lerminale lhis lease unless Landlord nolilies Tenanl lhal Landlord elects lo lcrmlnale lhls Lease, AlIer Tenanl’s default and lor so long as Landlord has nol lerminalcd Tenanl’s righl lo possession 01 Ihe Premsies. If TenanI oblains Landlord’s conscnl. TenanI shall have \he righI lo assume or sublel ils Inleresl In Ihe Lease, bul TenanI Shall nol be release0 lrom liabilily. Landlord’s consenl IO Ihe proposed asslgnmcnl or sublelfing shall noI be unreasonably wiIhhela. . II Landlord elects lo rclel lhe Premises as provlOe0 in Ihis paragraph, any renl lhal Landlord receives lrom such relelling shall apply llrsl to lhe payment 01 any indebtedness IrOm fenanl lo Landlord olher lhan lhc renl due loom Tenanl lo LandlOrd: secondly, lo all tosls, lncludlng malnlenance. Incurred by Landlord In such relelling: and lhlrd, IO any renl due and unpaid under lhls Lease. Aher deaucling Ihe payments relcrred IO In lhlt paragraph, any sum remalnlng from the rent landlord receives lrom such relelllng shall be held by Landlord an0 applied in payment 01 lulure rent as renl becomes due under lhls Lease. In no event shall lenanl be entlllco lo any excess renl recclved by Landlord. I. on Ihe dale renl Is due under lhls Lease, Ihe rent recetveo lrom lhe relelling Is less lhan the rent due on that bate, Tenant shall pay lo tandlord, In aOdPlon lo Ihe remaining rent due, all cosls. including mainlenance. lhal Landlord shall have incurred In relelllng thal remain atter applylng lhe rent received lrom lhc relcnlng as provlded In lhls paragraph. Landlord can, al 11s opllon, lcrmlnalc Tenant’s rlghl lo possesslon ol Ihe Premises aI any Ilmc. No act by Landlord other than glvlng wrlttcn nollcc lo Tenant shall lermlnalc lhls Lease. Acts 01 malnlenancc, eliotis lo relcl lhc Pramlses. or Ihe appolnlmcnl 01 a recclver on Landlord’s lnlllallve lo protect Landlord’s lnlsrssl In lhls Lease shall not conslllule a lermlnallon 01 Tenant’s right lo possesdon. In lhc even1 01 such lermlnallon, Landlord has Ihc rlght lo recover lrom Tenant: (1) The worth, al the llmc ol Ihe award, ol Ihc unpald renl lhal had been earned at Ihe lime 01 the lermlnallon of lhls Lease: (2) The wonh, al lhc lime ol the award, ol the amounl by which lhc unpaid rent lhal would have been earned atlsr the dale 01 the lermlnatlon 01 lhls Lcasc until the llmc ol lhe award exceeds the amount ol the loss of rent thal Tenant proves could have been reasonably avoldcd: (3) The worih, al the lime ol lhe award, 01 the amounl by which Ihc unpald renl 101 the balance 01 lhe lerm atlcr the tlmc ol the award exceeds the 8mOUnlol the loss 01 rent that Tenant proves could have been reasonably avo)ocd: and (4) Any Other amount, lncludlng coun costs, necessary lo compensate Landlord Ior all dclrlment proxlmatcly caused by Tenant’s delaull. “The wtlh al the lime 01 the award,” as used In (1) an0 (2) al lhls paragraph h lo be computed by allOvflng lnlerest at lhe MxlmUm rale an lndlvldual is permilled by law to charge. “The worlh al the Ilme or Ihc award” as referred lo In (3) ol lhis paragraph Is lo bc compuled by Olscounllng the amount al Ihe dlscounl ralc of lha Federal Reserve Bank of San Francisco al Ihc lime 01 Ihc award:plus one (1%) percenl. II Tenant Is In dclaull under the lerms of this Lease, Landlord shall have lhe addillonal rlghl 10 have a receiver appointed lo collect rent and conducf Tenanl’s buslncss. Ncllhsr lhe Ming ol a pcllllon lor lhc appolnlmenl 01 a receiver nor the appoinlmenl llsell shall conslllule an clccllon b r Landlord to tcrmlnatc lhls Lease. Landlord at any llmc aher Tenanl commlls a dclaull, can cure Ihe delaull al TenaN’s cosl and expense. II Landlord al any I me, by reason ol Tcnanl’s dolaull, pays any sum or does any acl lhal requires Ihe paymenl 01 any sum, Ihe sum pald by Landlord shall De due lmmedlalely born Tcnanl lo Landlord al Ihc lime the sum Is paid. and II pald al a lacer dale shall bear lnleresl at Ihe maximum rale an lndivldual is permllled by law 10 charge lrom Ihe dale the sum 1s paid by Landlord unlll Landlord Is reimbursed by Tcnanl. The sum, logelher wilh inlefesl Ihereon. Shall be considered addillonal renl. 16. SIGNS. Tenant shall nol have Ihe rlghl 10 place. construcl or mainlain any sign, adveflisemenl. awning, banner, or other cxlerlor decorallons on Ihc bulldlng or Olhcr improvemenls lhal are a part of lha Prcmlses wilhoul Landlord’s prior. wrillen consenl, whl~ consenl shall not be unreasonably wllhheld. 17. EARLY POSSESSION, In Ihe even1 lhal the Landlord shall permll Tenanl 10 occupy Ihc Premises prior 10 Ihc commencemenl dale of Ihe term of this Lease, such occupancy shall be subject lo aB Iha provlslons of lhls lease. Said early possession shall not advance the lerminallon dale of this Lease. 18. SU6OAOJNATION. This Lease, al Landlord’s opllon, shall bc subordinale lo any ground lease, mortgage, deed of Irusl, or any olher hypolhlcallon lOr securlly now or hereafter placed uoon the real prooctly of which Ihc Premises arc a parl and lo any an0 all advances made on the SecurllY lhereol and lo all renewal, modlllcallons. and exlenslois thereof. Ntiwiihstinding any such subordinallon, ienanl’s rlghl io qulel posscsslon cl Ihs Premises shall i~of be dlslurbed II Tenant Is nol In delaull and so long as Tenant shall pay the rent and observe and pcrlorm all the olher provlslons ol lhls Lease, unless lhls Lease Is olherwlse lermlnarcd pUrSuanl to lls terms. II any motigagce. truslee. or iround lessor shall clecl lo have lhls Lease prior lo Ihe llen of IIs morIgaga or deed 01 lrusl or ground lease. and Shall glvc wrlllen nOlICe thereof IO Tenant. lhls Lease shall bc deemed orlor lo such moTtodoe. deed of Irust or oround lease. whclher lhls Lease is daled orlor lo or subscaucnt lo lhe dale or such &orIgaic; deed ol IruSt or ground IMSS; of lhc dale of rcc&tinb thcreol. Tenanl igrecs lo cxc&Ie any documenls requlrcd ti ellecl such subdrdlnatlon or lo make lhls LeaSa PrlOr lo Ihe lien of any mOflQaQc, deed of trust, or Wound lease, as Ihc case may be. and lallinp IO do so wllhln Ian (10) days aHer wrltten demand from Landlord does iicreby make, ConsIlI~~e and lircvocably appolnl hndlord as TcnanI’s attorney In facl and In Tenanl’r name, place and stead lo do 60. 19. SURRENDER. On the lasl day of lhc term hereof, or on any sooner tarmlnatlon, TcnanI shall surrender Ihe Premlccs lo Landlord In good condltlon, broom tlcan, ordinary wear and tear accepted. Tenant thall rcpalr any damage lo Ihe Premises oocaslonc0 by IIS use thereof, or by lhe removal of Tenant’s -trade IIxjurcs, lumlshlngs and cqulpmsnl which rcpalr shall Include Ihe palchin and lllllng 01 holes and rcpalr 01 structural damage. Tenant Shell rcmovc all or Its personal property and llxlUrcS on Ihc Prcmlscs p&r lo the cxplratlon of the lcrm o lhls Lease and If required by Landlord pursuanl to Ar~lclc 10(a) above, any allcrallons, Improvements or addlllons s made by Tenant 10 Ihe Premises. If TenanI lalls lo currcndor the Premlscs lo Landlord on Ihc cxplrallon ol the Lease as rsqulrcd by lhls paraqraph, Tenant shall hold Landlord harmless from all damageS rcsulllng lrom Tcnanl’r Iallure 10 vacale Ihe Prcmlssr, Including, wllhoul IlmllaUon, claims made by any succcadlng lcnanl resulrlng Irom Tenant’s failure lo surrender the Prsmlses.
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20. HOLDING OVER. It the Tenant, v&h Ihe Landlord’s Tenant shall be deemed to be a tenancy consent, femalns In possesstan 01 the Premises alter the explrallon or termlnatlon ot Ihe term01 lhls Lease, such possesslon by from mOnIh+o-monlh al a rental In Ihe amounl of Ihe lasl monthly rental plus all other chargcs payable hereunder, upon all Ihe PfOvlSlOnS of this Lease applicable lo month*lo-month tenancy. 21. BINDING ON SUCCESSORS AND ASSIGNS. The terms, condillons and covenanls ol this Lease shall be binding upon and shall Inure to Ihe benefit of each 01 Ihe panles herclo, lhelr helm, personal raPraSenlallves, successors and assigns. 22. NOTICES. Whenever Under lhls Lease a prOvisIOn Is made lor any demand, nollce or declaralion 01 any kind. it shall be In wrlllng and served ellher personally or senl by registered or cenilied Unlled SlalaS mail, postage prepaid, addressed al Ihe addresses as set forth below:
TO LANDLORD AT: 2965 Roosevelt Street Carlsbad, CA 92008
TO TENANT AT: 1200 Carlsbad Village Drive Carlsbad, CA 92008
Such nollce shall be deemed lo be received wilhln lorly-eight (48) hours born the lime 01 malllng, II malled as provided lor In Ihls paragraph. 23. LANDLORD’S RIGHT TO INSPECTIONS. Landlord and Landlord’s agent shalt have the rtghl lo enter the Premises al reasonabte ltmes lor the purpose of inspecting same, showing the same to prospective purchasers or lenders, and maklng such allerallons. repairs, Improvements or addltlons lo the Premises of lo Ihe buildlng 01 which lhe Premises are a pail as Landlord may deem necessary or desirable. Landlord may al any lime place on or aboul Ihe Premises any ordinary “For Sale” signs and Landlord may al any lime during Ihe last one hundred twenty (120) days 01 Ihe lerm ot lhls Lease place on or aboul the Premises any ordinary “For Sale or Lease” signs, all wlthout rebate of rem or llabllity to Tenant, 24. CHOICE OF LAW. This Lease shall be governed by the laws 01 Ihe stale where the Premises are located.
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26. LANDLORD’S LIABILITY. The lerm “Landlord” as used In lhls Lease shall mean only the owner or owners al Ihe llme In question of the lee lllle or a Lessee’s lnleresl In a ground lease 01 Ihe Premises, and in Ihe even1 al any lransler of such litle or Inlerest, Landlord herein named (and in case of any subscquenl lranslers to Ihe lhen successor) shall be relieved lrom and atter the dale 01 such transfer al all liability in respect to Landlord’s obllgalions therealter to be performed. The obllgallons contained In lhls Lease lo be petiormed by Landlord shall be bindlng upon the Landlord’s successors and assigns, only during lhelr respecllve perlods of ownershlp. 27. WAIVERS. No waiver by Landlord bl any provision here01 shall be deemed a walver ol any other provision hereof or cl any subsequenl breach by Tenant of the same or any other prOVISIOn. Landlord’s COnSenl lo or approval a( any act shall nol be deemed to render unnecessary Ihe obtalnlng 01 Landlord’s consenl lo or approval 01 any subsequenl acl by Tenant. The acceptance ol rent hereunder by Landlord shall nol be a waiver of any preceding breach by Tenanl of an r provlslon hereof, other lhan the lailure of Tenanl lo pay the particular rent so accepted. tegatdless of Landlord’s knowledge of such preceding breach at the lime 0 Its acceptance al such renl. 26. INCORPORATION OF PRIOR AGREEMENTS. This Lease conlalns all agreements 01 Ihe partles wilh respect lo any matler menlioned hereln. No prior agreement or underslanding penalnlng lo any such malter shall be ellectlve. Thls Lease may be modified only in wriling. and signed by the parlies In inlerest al the lime of such modlllcatlon. 29. TIME. Time Is of the essence ot lhis Lease. 30. SEVERABILITY. The unenlorceabltily. invalidily, or Iltegallly 01 any provision 01 lhis Lease shall nol render the olher provlslons here01 unenlorceable, lnvalld Or itlegat. 31. ESTOPPEL CERTIFICATES. Each parly. wllhin len (10) days atter nolite lrom lhe olher party. shall execute and deliver to the other party a Certillcate Stalin 8 lhal this Lease lo vnmodllled and In lull force and eftect. or In lull lorce and etlecl as modilied. and stating Ihe modificalion. The certillcate shall also state the amount 0 minimum monthly ram, Ihe dates lo which rent has been paid in advance. and the amount 01 any fccuriiy deposit or prepaid rent. if any. as well as acknowfedglnq tha! there are not, to lhal party’s knowledge, any uncured delaulls on Ihe part 01 the olher parly. or specllying Such delaults. II any. which are claimed. Failure IO dellver such a CeRtflCale Wlthln the ten (10) day period shall be conclusive upon the pany lailing 10 deliver lhe certrlicate IO the benelil 01 the patly requesting Ihe certltlcale lhal this Lease Is In lull lorce and etlecl. that there are no uncured delaulls hereunder. and has nol been modtIled except as may be represented by the party requestlng Ihe cerlllicale. 32. COVENANTS AND CONOITIONS. Each provision Ot lhis Lease perlormable By Tenanl shall be deemed bolh a covenanl and a condition. 33. SINGULAR AND PLURAL. When requlred by the conlexl 01 lhit Lease. lhe singular shall include Ihe plural. 34. JOINT AND SEVERAL OBLIGATIONS. “Party” shalt mean Landlord and Tenant: and II more man one person OI entily is Ihe Landlord of Tcnanl, the ooligations Imposed on lhat pany shall be tolnl and scvcrat. 1L.
ot the lerm. Nellher
36. AOOENDUM. Any addendum allached.herelo and elther slgned or inllialled by r?e parties shall be deemed a part hereof and shall supersede any confllctlng lerms or provlslons contalned In lhls Lease.
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ADDENDUM
Addendum to lease dated July 1, 1999 between CARLSBAD EQUITY PROPERTIES, A General Partnership, Lessor (Landlord), and the CITY OF CARLSBAD CALIFORNIA Lessee (Tenant).
37. EARLY POSSESSION
Tenant is currently occupying the premises, which are the subject of this lease.
shall continue at the existing rental rate until the effective date of this lease.
Said occupancy
As of the effective date of this lease, the prior lease covering the currently occupied premises shall be terminated.
38. 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 all Urban Consumers, L.A. - Riverside, Orange County Average, Subgroup, “All Items” (1982-84=100) (the “Index”). The Index published as of the third
month prior to the commencement date shall be 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 applicablej prior to each Adjustment Date (“Adjusted
Base Rent”). Notwithstanding any subsequent d&ease 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 equivalent offkial 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 than 4% per year or exceed 7% per year non-cumulative.
39. 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. - Riverside, Orange County Average, Subgroup “All Items” (1982-84=100)), 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 factor to accomplish said substitution. The substitute index shall then become the “Index”
hereunder.
Landlord:
CARI+SBAD EQUITY PROPERTIES
A GENERAL PARTNERSHIP
Tenant:
CITY OF CARLSBAD CALIFORNIA
Attest:
Date I’- aa #”
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