HomeMy WebLinkAbout2006-04-11; City Council; 18513; Approval of lease btwn City and Rosa HernandezCITY OF CARLSBAD - AGENDA BILL
AB# 18.513
MTG. 4/11/06
DEPT. ED
TITLE:
APPROVAL OF A LEASE AGREEMENT BETWEEN THE
CITY OF CARLSBAD AND ROSA HERNANDEZ FOR 2833
STATE STREET
DEPT. HE
CITY ATTY.
CITY MGR
RECOMMENDED ACTION:
ADOPT Resolution No. 2006-086 approving a three year lease agreement for the term April 15
1, 2006 to April 14, 2009, with Rosa Hernandez, and authorizing the City Manager to execute all
associated documents.
ITEM EXPLANATION:
The City of Carlsbad is the owner of real property located at 2833 State Street in Carlsbad, California,
currently operated as the Village Grille, a restaurant, by Dale Perrigo. Mr. Perrigo has indicated that
due to health reasons, he has decided to sell his business interest in the property. Mr. Perrigo has
requested the City consider Ms. Rosa Hernandez, buyer of Mr. Perrigo's business interests, as a
replacement tenant. Ms. Hernandez is the owner/operator of Don's Country Kitchen located at 2885
Roosevelt Street, Carlsbad, CA. Ms. Hernandez has owned Don's Country Kitchen for five years. It
is Ms. Hernandez's intention to continue operating her existing restaurant, establishing 2833 State
Street as her second location.
The property in question is located adjacent to property owned by the Carlsbad Redevelopment
Agency and the North County Transit District and has been leased continuously to the Village Grille
as a restaurant, since 1992. At this time there are no immediate plans for use of the City owned site,
nor is it likely that any plan for reuse or redevelopment of the site will be approved within the next
thirty-six (36) to sixty (60) month period. Staff has evaluated this request and does not feel that
entering into a three (3) year lease agreement will affect any future planning or redevelopment of the
site. In addition, the lease agreement would provide an option for Ms. Hernandez to extend the term
of the lease agreement for two (2) additional one (1) year periods, with the City's consent.
ENVIRONMENTAL IMPACT:
The Planning Director has determined that the project is exempt from the California Environmental
Quality Act, pursuant to Section 15301 of the CEQA Guidelines. Section 15301 exempts projects or
s- activities that consist of leasing of existing public facilities involving no expansion of use. Lease of
O public property for operation of a restaurant, with an existing use as a restaurant, and no other plan for
development of that property, is such an activity. Should the City decide to pursue development of
the site at a future date, additional environmental review will be conducted.
FISCAL IMPACT:
The term of the lease is three (3) years with total estimated payments of $41,223.84
30. The lease payments will be paid as follows:
Month 1-12: $1100.50 per month or $13,206.00/year
Month 13-24: $1144.52 per month or $13,734.24/year.
PAGE 2
Month 25-36: $1190.30 per month or $14,283.84
EXHIBITS:
2006-0861. Resolution Nor of the City Council of the City of Carlsbad, California, approving a
three-year lease agreement for the term April 15, 2006 to April 14, 2009.
2. Lease Agreement between the City of Carlsbad and Rosa H. Hernandez.
DEPARTMENT CONTACT: Cynthia Haas, (760) 602-2732, chaas@ci.carlsbad.ca.us
1 RESOLUTION NO. 2006-086
2 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, APPROVING AND
AUTHORIZING THE CITY MANAGER TO EXECUTE THE
4 AGREEMENT ASSOCIATED WITH THE LEASE OF 2833
STATE STREET. CARLSBAD
5 WHEREAS, City of Carlsbad is the owner of real property located at 2833 State Street;
6 and
7 WHEREAS, the existing lessee, Dale Perrigo dba the Village Grille has entered into
8 escrow for the sale of his business interest to Rosa Hernandez; and
9 WHEREAS, Dale Perrigo is requesting that the City consider Rosa Hernandez as a
10
replacement tenant for the property located at 2833 State Street to operate a new restaurant; and
11
WHEREAS, City staff has reviewed financial information provided by Rosa Hernandez,
12
and is recommending that the City accept Ms. Hernandez as a replacement tenant by entering
13 into a three (3) year lease agreement between the City and Rosa Hernandez; and
14 WHEREAS, the City will receive lease revenue totaling approximately $41,223.
15 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad,
16
California as follows:
17
1 . That the above recitations are true and correct.
18 2. That the attached lease agreement, Exhibit 2, between the City of Carlsbad
19
and Rosa Hernandez is approved.
20
3 . That the City Manager is authorized to execute all documents related to
21 leasing 2833 State Street.
22
23
24
25
26
27
28
3
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council on the
day of April 2006, by the following vote to wit:
AYES:Council members Lewis, Hall, Kulchin, Packard, and Sigafoose
NOES: None
ABSENT: None
llth
Mayor
ATTEST:
LORRAINE M. WOOD
City Clerk
(SEAL)
-2-
CITY OF CARLSBAD
LEASE TO
ROSA H. HERNANDEZ
OF PROPERTY LOCATED AT
2833 STATE STREET
CARLSBAD, CALIFORNIA 92008
LEASE AGREEMENT
,>THIS LEASE AGREEMENT, made and entered into this 13 day of
2006, by and between the City of Carlsbad, hereinafter called "Lessor," and Rosa H.
Hernandez, hereinafter called "Lessee," without reference to number or gender, for
property located at 2833 State Street, Carlsbad, California, 92008.
WITNESETH:
WHEREAS, the City of Carlsbad is the owner of the real property located at 2833 State
Street, Carlsbad, California, 92008; and
WHEREAS, existing Lessee Dale Perrigo dba The Village Grille will sell his business
interest to Rosa H. Hernandez;
WHEREAS, The Lessor has reviewed financial information for Rosa H. Hernandez and
finds them in good order and acceptable;
WHEREAS, Lessor and Lessee desire enter into a new lease for the premises for a
three (3) year term, with two (2) one (1) year options to renew.
NOW, THEREFORE, it is understood and agreed by and between the parties hereto as
follows, to wit:
TO HAVE AND TO HOLD a portion of said leased premises for the term of this lease
and upon the conditions as follows:
1. TERM: The term of the lease shall be for a period of three (3) years beginning
on April 15, 2006 and ending on April 14, 2009. Upon expiration of the lease,
Lessee may request to extend the term for two (2) additional one (1) year
periods, provided Lessor gives its consent to such extension, and there is mutual
agreement upon the rental amount for the additional periods. Lessee must
request such extension in writing at least 120 days prior to the lease term
expiration.
2. EARLY POSSESSION: On or before April 15, 2006. Early possession by
Lessee, as well as commencement of this lease, is contingent upon receipt by
Lessor of security deposit and evidence of insurance (See also Paragraph 25).
All other terms of this Lease (including but not limited to the obligations to pay
Real Property Taxes and Insurance premiums and to maintain the Premises)
shall, however, be in effect during such period. Any such early possession shall
not affect the Expiration Date.
3. RENT:
2833 State Street
Rosa H. Hernandez
City of Carlsbad - 3-22-06
(a) Lessee agrees to pay to Lessor the sum of one thousand one hundred
dollars and fifty cents ($1100.50) per month, payable in advance on or
before the first day of each and every month during the term of this
Agreement.
775 square feet Restaurant @ $1.42: $1100.50
(b) Rent shall be delivered to the Finance Department of the City of
Carlsbad at 1635 Faraday Avenue, Carlsbad, California, 92008. The
designated place of payment and filing may be changed at any time by
Lessor upon ten (10) days written notice to Lessee. Lessee assumes
all risk of loss if payments are made by mail.
(c) In the event Lessee is delinquent in remitting the rent due in
accordance with the rent provisions of this lease, then the rent not paid
when due shall bear interest at the rate of Ten Per Cent (10%) per
annum from the date due until paid. Provided, however, that the
Manager of Economic Development and Real Estate shall have the
right to waive for good cause any interest payment for any such
delinquency period upon written application of Lessee
(d) Total Rent payment for month 13 shall be abated, provided Lessee has
had no breach of contract, has not given notice of termination, has
made no late payments and has completed approved tenant
improvements scheduled for completion in months 1-12 (See also
Paragraph 7(b)). Total Rent payment for month 25 shall be abated
provided Lessee has had no breach of contract, has not given notice of
termination, has made no late payments and has completed all Lessor
approved tenant improvements.
(e) Commencing on the anniversary date of this lease, in years two (2)
and three (3) rent shall increase as follows:
Year 2: One thousand one hundred and forty-four dollars, and fifty-
two cents ($1144.52) per month.
Year 3: One thousand one hundred and ninety dollars and thirty
cents ($1190.30) per month.
4. SECURITY DEPOSIT: Lessee shall deposit with Lessor upon execution
hereof the Security Deposit in the amount of two-thousand two hundred and one
dollars and no cents ($2201.00) as security for Lessee's faithful performance of
its obligations under this Lease. If Lessee fails to pay Rent, or otherwise
Defaults under this Lease, Lessor may use, apply or retain all or any portion of
said Security Deposit for the payment of any amount due Lessor or to reimburse
2833 State Street 3
Rosa H. Hernandez
City of Carlsbad - 3-22-06
or compensate Lessor for any liability, expense, loss or damage which Lessor
may suffer or incur by reason thereof. If Lessor uses or applies all or any portion
of said Security Deposit, Lessee shall within ten (10) days after written request
therefore deposit monies with Lessor sufficient to restore said Security Deposit to
the full amount required by this Lease. If the Rent increases during the term of
this Lease, Lessee shall, upon written request from Lessor, deposit additional
moneys with Lessor so that the total amount of the Security Deposit shall at all
times bear the same proportion to the increased Rent as the initial Security
Deposit bore to the initial Base Rent. Should the Agreed Use be amended to
accommodate a material change in the business of Lessee, Lessor shall have
the right to increase the Security Deposit to the extent necessary, in Lessor's
reasonable judgment, to account for any increased wear and tear that the
Premises may suffer as a result thereof. Lessor shall not be required to keep the
Security Deposit separate from its general accounts. Within fourteen (14) days
after the expiration or termination of this Lease, if Lessor elects to apply the
Security Deposit only to unpaid Rent, and otherwise within thirty (30) days after
the Premises have been vacated, Lessor shall return that portion of the Security
Deposit not used or applied by Lessor. No part of the Security Deposit shall be
considered to be held in trust, to bear interest or to be prepayment for any
monies to be paid by Lessee under this Lease.
5. USE:
(a) Lessee agrees that 775 square feet of leased premises designated as
restaurant shall be used by Lessee only and exclusively for operation
of a restaurant and for no other purpose whatsoever without the written
consent of Lessor.
(b) Lessee shall not and is expressly prohibited from using the premises
for any other purpose or use whatsoever, whether it is purported to be
in addition to or in lieu of the particular exclusive use.
(c) Lessee shall actively and continuously use and operate the premises
for the limited particular exclusive use as expressly provided for in
Paragraph 3(a) of this lease, except for failure to do so caused by acts
of God.
(d) Lessee shall be prohibited from the sale or consumption of alcohol on
the leased premises.
6. EARLY TERMINATION: Lessee shall have a right to terminate this lease by first
giving one hundred twenty (120) days prior written notice to Lessor.
7. IMPROVEMENTS:
2833 State Street
Rosa H. Hernandez
City of Carlsbad - 3-22-06
(a) Subject to Lessor approval, Lessee may, at its own expense, make
interior alterations or changes in the 775 square feet of leased
premises or cause to be built, made or installed thereon any structures,
machines, appliances, utilities, signs or other improvements necessary
or desirable for the use of said premises and may alter and repair any
such structures, machines or other improvements; provided, however,
that no alterations and changes shall be made and no structures,
machines, appliances, utilities, signs or other improvements shall be
made, built or installed, and no major repairs thereto shall be made
except upon obtaining all necessary prior approvals from Lessor and
proper permits from the City of Carlsbad.
8. OWNERSHIP; REMOVAL; SURRENDER/RESTORATION:
(a) Ownership. Lessor shall have the right to require removal or elect
ownership of all alterations and utility installations made by Lessee,
except for trade fixtures, which shall be owned and removed by
Lessee. Unless otherwise instructed per Paragraph 6(b) hereof, all
Lessee owned alterations and utility installations shall, at the expiration
or termination of this Lease, become the property of Lessor and be
surrendered by Lessee with the premises.
(b) Removal. By delivery to Lessee of written notice from Lessor, Lessor
may require that any or all Lessee constructed alterations or utility
installations be removed by the expiration or termination of this Lease.
Lessor may require the removal at any time of all or any part of any
alterations or utility installations made without the required consent.
(c) Surrender/Restoration. Lessee shall surrender the premises by the
expiration date or any earlier termination date, with all of the
improvements, parts and surfaces thereof broom clean and free of
debris, and in good operating order, condition and state of repair,
ordinary wear and tear excepted. "Ordinary wear and tear" shall not
include any damage or deterioration that would have been prevented
by good maintenance practice. Lessee shall repair any damage
occasioned by the installation, maintenance or removal of trade
fixtures, alterations and/or utility installations, furnishings, and
equipment installed by or for Lessee and the removal, replacement, or
remediation of any soil, material or groundwater contaminated with
hazardous substance (as defined in Paragraph 22) by Lessee. Trade
fixtures shall remain the property of Lessee and shall be removed by
Lessee. The failure by Lessee to timely vacate the premises pursuant
to this Paragraph 6 (c) without the express written consent of Lessor
shall constitute a holdover under the provisions of Paragraph 29 below.
2833 State Street 5
Rosa H. Hernandez
City of Carlsbad-3-22-06
°(
9. REPRESENTATIONS AND INDEMNITIES OF BROKER RELATIONSHIPS:
Lessor represents itself in this leasing transaction and has not enlisted the
services of any real estate brokerage related to this transaction. Lessor shall not
be responsible for payment of any compensation to any real estate brokerage
that may be involved in this leasing transaction or any subsequent options to
renew. Any leasing commission(s) associated with this lease transaction, or any
future lease transactions, including the exercise of options to renew, shall be
borne entirely by Lessee.
Lessee hereby agrees to indemnify, protect, defend and hold harmless from and
against liability for compensation or charges which may be claimed by any such
unnamed broker, finder or other similar party by reason of any dealings or
actions of the Lessee and/or Lessor, including any costs, expenses, or attorney's
fees reasonably incurred with respect thereto.
10.WAIVER OF RELOCATION BENEFITS: Lessee understands this lease
agreement is entered into for a specified period of time in order to provide interim
use of the property. Lessee therefore agrees to waive any and all relocation
benefits defined in the California Relocation Assistance Law (Government Code,
Section 7260, et, seq.) after having the opportunity to consult with legal counsel
about potential entitlements.
11. LIENS:
(a) Lessee agrees that it will at all times hold Lessor free and harmless
and indemnify it against all claims for labor or materials in connection
with improvements, repairs, or alterations on the lease premises,
including the costs of defending against such claims, and reasonable
attorney's fees incurred therein.
(b) In the event that any lien or levy of any nature whatsoever is filed
against the lease premises or the leasehold interests of the Lessee,
the Lessee shall, upon written request of Lessor, deposit with Lessor a
bond conditioned for the payment in full of all claims upon which said
lien or levy has been filed. Such bond shall be acknowledged by
Lessee as principal and by a corporation, licensed by the Insurance
Commissioner of the State of California to transact the business of a
fidelity and surety insurance company, as surety, and in accordance
with the City of Carlsbad's bonding requirements. Lessor shall have
the right to declare this lease in default in the event the bond required
by this paragraph has not been deposited with the Lessor within ten
(10) days after written request has been delivered to Lessee.
12. LEASE ENCUMBRANCE: Lessee understands and agrees that it cannot
encumber the lease, leasehold estate and the improvements thereon by a deed
2833 State Street 6
Rosa H. Hernandez
City of Carlsbad - 3-22-06
lO
of trust, mortgage or other security instrument. If any deed of trust, mortgage or
other security instrument, which encumbers the lease, leasehold estate and the
improvements thereon is entered into by Lessee, Lessor shall have the right to
declare this lease in default.
13. ASSIGNMENT-SUBLEASE: Lessee shall not assign or transfer the whole or
any part of this lease or any interest therein, by merger, consolidation, dissolution
or otherwise, nor sublease the whole or any part of the leased premises, nor
contract for the management or operation of the whole or any part of the leased
premises, nor permit the occupancy of any part thereof by any other person or
business entity, nor permit transfer of the lease by merger, consolidation or
dissolution.
14. DEFAULT:
(a) It is mutually understood and agreed that if any default be made in the
payment of rental herein provided or in the performance of the
covenants, conditions, or agreements herein (any covenant or
agreement shall be construed and considered as a condition), or
should Lessee fail to fulfill in any manner the uses and purposes for
which said premises are leased as above stated, and such default
shall not be cured within thirty (30) days after written notice thereof if
default is in the performance of the use obligation provisions pursuant
to Paragraph 3 of this lease, or ten (10) days after written notice
thereof if default is in the payment of rent, or in the performance of any
other covenant, condition and agreements, Lessor shall have the right
to immediately terminate this lease; and that in the event of such
termination, Lessee shall have no further rights hereunder, the Lessee
shall thereupon forthwith remove all personal property from said
premises and shall have no further right to claim thereto, and Lessor
shall immediately thereupon, without recourse to the courts, have the
right to reenter and take possession of the leased premises. Lessor
shall further have all other rights and remedies as provided by law,
including without limitation the right to recover damages from Lessee in
the amount necessary to compensate the Lessor for all the detriment
proximately caused by the Lessee's failure to perform its obligations
under the lease or which in the ordinary course of things would be
likely to result there from.
(b) In the event of the termination of this lease pursuant to the provisions
of this paragraph, Lessor shall have any rights to which it would be
entitled in the event of the expiration or sooner termination of this
lease.
15. BANKRUPTCY: In the event Lessee becomes insolvent, makes an assignment
for the benefit of creditors, files a petition in bankruptcy or becomes the subject of
2833 State Street 7
Rosa H. Hernandez
City of Carlsbad - 3-22-06
U
a bankruptcy proceeding, reorganization, arrangement, insolvency, receivership,
liquidation, or dissolution proceeding, or in the event of any judicial sale of
Lessee's interest under this lease, Lessor shall have the right to declare this
lease in default.
16. MAINTENANCE AND REPAIR:
(a) As part of the consideration for the leasing thereof, Lessee agrees to
assume full responsibility for the interior operation and maintenance
throughout the term and without expense to the Lessor. Lessee will
perform all interior maintenance, repairs and replacements, including
glass, necessary to maintain and preserve the premises in a good,
safe, healthy and sanitary condition satisfactory to Lessor and in
compliance with all applicable laws. Lessee agrees to keep premises
free and clear of rubbish and litter, or any other fire hazards. Lessor
shall be responsible for all exterior maintenance and landscaping,
except for maintenance and repair of storage area, including roof
structure.
(b) For the purpose of keeping the premises in a good, safe, healthy and
sanitary condition, Lessor shall have the right but not the duty, to enter,
view, inspect, determine the condition of and protect its interests in, the
premises. If inspection discloses that the premises are not in the
condition described, Lessee must perform the necessary maintenance
work within thirty (30) days after written notice from Lessor. Further, if
at any time during the term of the lease for the premises Lessor
determines that the premises are not in the condition described, Lessor
may require Lessee to file and pay for a faithful performance bond, to
assure prompt correction without additional notice. The amount of this
bond shall be adequate, in Lessor's opinion, to correct the
unsatisfactory condition. The rights reserved in this section shall not
create any obligations or increase any obligations for Lessor elsewhere
in this Lease.
17. TAXES AND UTILITIES: This lease may result in a taxable possessory interest,
and be subject to payment of property taxes. Lessee agrees to and shall pay
before delinquency all of the possessory taxes and assessments of any kind
assessed or levied upon Lessee or the leased premises by reason of this lease
or of any structures, machines, or other improvements of any nature whatsoever
erected, installed or maintained by Lessee, or by reason of the business or other
activities of Lessee upon or in connection with the leased premises. Lessee shall
also pay any fees imposed by law for licenses or permits for any business or
activities of Lessee upon the leased premises or under this lease. Lessee shall
be responsible for payment of all maintenance and operating expenses including
insurance, taxes and all electricity and any other utilities to the premises, and
shall pay before delinquency any and all charges for utilities at or on the leased
2833 State Street 8
Rosa H. Hernandez
City of Carlsbad-3-22-06
13-
premises. If Lessee fails to pay said possessory taxes, Lessor may declare
default in accordance with Paragraph 12. Lessee shall be responsible for
payment of all utilities.
18. CONFORMANCE WITH RULES AND REGULATIONS: Lessee agrees that in
all activities on or in connection with the leased premises and in all uses thereof,
including the making of any alterations or changes and the installation of any
machines or other improvements, it will abide by and conform to all ordinances,
codes, laws, rules and regulations prescribed by the City of Carlsbad, including
those of the County Health Department, the State of California and Federal
Government, specifically including the Americans With Disabilities Act, as any of
the same now exist or may hereafter be adopted or amended.
19. NON-DISCRIMINATION: Lessee agrees not to discriminate against any person
or class of persons by reason of sex, color, race, religion, or national origin. If
the use provided for in this lease allows the Lessee to offer accommodations or
services to the public, such accommodations or services shall be offered by the
Lessee to the public on fair and reasonable terms.
20. PARTIAL INVALIDITY: If any term, covenant, condition, or provision of this
lease is held by a court of competent jurisdiction to be invalid, void or
unenforceable, the remainder of the provisions hereof shall remain in full force
and effect and shall in no way be affected, impaired, or invalidated thereby.
21. HOLD HARMLESS: Lessee shall defend, indemnify, and hold harmless Lessor,
its officers and employees from liability, damage, and expense of any kind,
including reasonable attorney's fees, arising from all claims or causes of action of
any kind including but not limited to injury to or death of any person or persons,
including Lessee, its employees, and invitees resulting directly or indirectly from
granting and performance of this lease or arising from the use and operation of
the leased premises or any defect in any part thereof.
22. SUCCESSORS IN INTEREST: Unless otherwise provided in this lease, the
terms, covenants and conditions herein shall apply to and bind the heirs,
successors, executors, administrators, and assigns of al the parties hereto, all of
whom shall be jointly and severally liable hereunder.
23. EASEMENTS: This lease and all rights given hereunder shall be subject to
all easements and rights-of-way now existing or heretofore granted or reserved
by Lessor in, to or over the leased premises for any purpose whatsoever, and
shall be subject to such rights-of-way for reasonable access, sewers, pipelines,
conduits and such telephone, cable television, telegraph, light heat or power lines
as may from time to time be determined by the Lessor. Lessor agrees that such
easements and rights-of-way shall be so located and installed as to produce a
minimum amount of interference to the business of Lessee.
2833 State Street
Rosa H. Hernandez
City of Carlsbad - 3-22-06
24. HAZARDOUS SUBSTANCES: The term "Hazardous Substance" as used in
this Lease shall mean any product, substance, or waste whose presence, use,
manufacture, disposal, transportation, or release, either by itself or in
combination with other materials expected to be on the premises, is either: (i)
potentially injurious to the public health, safety or welfare, the environment or the
premises, (ii) regulated or monitored by any government authority, or (iii) a basis
for potential liability of Lessor to any governmental agency or third party under
any applicable statue or common law theory. Lessee shall not cause or permit
any Hazardous Substance to be spilled or released in, on, under, or about the
premises (including through the plumbing or sanitary sewer system) and shall
promptly, at Lessee's expense, take all investigatory and/or remedial action
reasonably recommended, whether or not formally ordered or required, for the
cleanup of any contamination of, and for the maintenance, security and/or
monitoring of the premises or neighboring properties, that was caused or
contributed to by Lessee, or pertaining to or involving any Hazardous Substance
brought onto the premises during the term of this Lease, by or for Lessee, or any
third party.
25. INSURANCE: Lessee shall obtain and maintain for the duration of this lease
agreement and any and all amendments, insurance against claims for injuries to
persons or damage to property which may arise out of or in connection with use
of the subject building and provision of services by Lessee. The insurance will be
obtained from an insurance carrier admitted and authorized to do business in the
State of California. The insurance carrier is required to have a current Best's Key
Rating of not less than "A-V". The policies for said insurance shall, as a
minimum, provide the following forms of coverage:
(a) Comprehensive General Liability - (covering premises and
operations in the amount of not less than One Million Dollars
($1,000,000) combined single limit per occurrence for bodily injury,
personal injury and property damage. If the submitted policies contain
aggregate limits, general aggregate limits will apply separately under
this lease or the general aggregate will be twice the required per
occurrence limits. Lessor shall be named as an additional insured
entitled to primary coverage.
(b) Property Insurance - Lessee shall obtain and maintain insurance
coverage on all of Lessee's personal property, trade fixtures,
alterations and utility installations. Such insurance shall be full
replacement cost coverage with a deductible of not to exceed
$5,000.00 per occurrence. The proceeds from any such insurance
shall be used by Lessee for the replacement of personal property and
trade fixtures as well as alterations and utility installations.
Lessor will be responsible for providing coverage for the structure itself,
exclusive of the items required to be covered by Lessee's insurance policy.
2833 State Street 10
Rosa H. Hernandez
City of Carlsbad - 3-22-06
14
(c) Business Interruption - Lessee shall obtain and maintain loss of
income and extra expense insurance in amounts as will reimburse
Lessee for direct or indirect loss of earnings attributable to all perils
commonly insured against by prudent lessees in the business of
Lessee or attributable to prevention of access to the premises as a
result of such perils.
(d) Evidence of Insurance - Certificates and endorsements in a form
acceptable to Lessor evidencing the existence of the necessary
insurance policies shall be kept on file with Lessor during the entire
term of this lease. All insurance policies shall be primary coverage,
and will name Lessor as an additional insured, protect Lessor against
any legal costs in defending claims and will not terminate without thirty
(30) days written notice to Lessor.
(e) Lessor shall retain the right at any time to review the coverage, form,
and amount of the insurance required hereby. If, in the opinion of the
Lessor, the insurance provisions in this lease do not provide adequate
protection for Lessor and/or for members of the public using the leased
premises, Lessor may require Lessee to obtain insurance sufficient in
coverage, form and amount to provide adequate protection. Lessor's
requirements shall be reasonable but shall be designed to assure
protection from and against the kind and extent of risk, which exist at
the time a change in insurance is required.
(f) Lessor shall notify Lessee in writing of changes in the insurance
requirements and, if Lessee does not deposit
certificates/endorsements evidencing acceptable insurance policies
with Lessor incorporating such changes within thirty (30) days of
receipt of such notice, this lease shall be in default without further
notice to Lessee, and Lessor shall be entitled to all legal remedies.
(g) The procuring of such required policies of insurance shall not be
construed to limit Lessee's liability hereunder, nor to fulfill the
indemnification provisions and requirements of this lease.
Notwithstanding said policies of insurance, Lessee shall be obligated
for the full and total amount of any damage, injury, or loss caused by
negligence or neglect connected with this lease or with the use or
occupancy of the leased premises.
(h) Lessee agrees not to use the premises in any manner, even if use is
for purposes stated herein, that will result in the cancellation of any
insurance Lessor may have on the premises, or on adjacent premises,
or that will cause cancellation of any other insurance coverage for the
premises, or adjoining premises. Lessee further agrees not to keep on
2833 State Street 11
Rosa H. Hernandez
City of Carlsbad - 3-22-06
the premises or permit to be kept, used, or sold thereon, anything
prohibited by any fire or other insurance policy covering the premises.
Lessee shall, at its sole cost and expense, comply with any and all
requirements, in regard to premises, of any insurance organization
necessary for maintaining fire and other insurance coverage at
reasonable cost.
26. WARRANTIES-GUARANTEES-COVENANTS: Lessor makes no warranty,
guarantee, covenant, including but not limited to covenants of title and quiet
enjoyment, or declaration of any nature whatsoever, concerning the condition of
the leased premises, including the physical condition thereof, or any condition
which may affect the leased premises, and it is agreed that Lessor will not be
responsible for any loss, damage or costs which may be incurred by Lessee by
reason of any such condition or conditions.
27. DAMAGE TO OR DESTRUCTION OF PREMISES: In the event of damage to
or destruction by fire, the elements, acts of God, or any other cause, of twenty
five percent (25%) or less of the improvements located within the premises
Lessee shall, within ninety (90) days, commence and diligently pursue to
completion the repair, replacement, or reconstruction of improvements necessary
to permit full use and occupancy of the demised premises for the purposes
required by this lease. Repair, replacement or reconstruction of improvements
within the demised premises shall be accomplished in a manner and according to
plans approved by Lessor; provided, however, Lessee shall not be obligated to
repair, reconstruct or replace the improvements following their destruction in
whole or substantial part (more than 25% of improvements) except to the extent
the loss is covered by insurance required to be carried by Lessee pursuant to
Paragraph 24 of this Lease (or would be covered whether or not such required
insurance is actually in effect). If Lessee elects not to restore, repair or
reconstruct as herein provided, then the Lease shall terminate. Rent shall not be
abated during the repair period, except to the extent that Lessor is compensated
by Lessee's insurance for rental loss. Lessor shall be entitled to any insurance
proceeds and other compensation for the loss.
28. QUITCLAIM OF LESSEE'S INTEREST UPON TERMINATION: Upon
termination of this lease for any reason, including but not limited to termination
because of default by Lessee, Lessee shall execute, acknowledge and deliver to
Lessor within thirty (30) days after receipt of written demand thereof a good and
sufficient deed whereby all right, title and interest of Lessee in the demised
premises is quitclaimed to Lessor. Should Lessee fail or refuse to deliver the
required deed to Lessor, Lessor may prepare and record a notice reciting the
failure of Lessee to execute, acknowledge and deliver such deed and said notice
shall be conclusive evidence of the termination of this lease and of all right of
Lessee or those claiming under Lessee in and to the demised premises.
2833 State Street 12
Rosa H. Hernandez
City of Carlsbad - 3-22-06
29. PEACEABLE SURRENDER: Upon the expiration of this lease or sooner
termination or cancellation thereof, as herein provided, Lessee will peaceably
surrender said premises to Lessor in as good condition as said premises were at
the date of this lease, ordinary wear and tear excepted. If the Lessee fails to
surrender the premises at the expiration of this lease or the earlier termination or
cancellation thereof, Lessee shall defend and indemnify Lessor from all liability
and expense resulting from the delay or failure to surrender, including, without
limitation, any succeeding Lessee's claims based on Lessee's failure to
surrender.
30. WAIVER: Any waiver by Lessor of any breach by Lessee of any one or more of
the covenants, conditions, or agreements of this lease shall not be, nor be
construed to be, a waiver of any subsequent or other breach of the same or any
other covenant, condition or agreement of this lease, nor shall any failure on the
part of Lessor to require or exact full and complete compliance by Lessee with
any of the covenants, conditions, or agreements of this lease be construed as in
any manner changing the terms hereof or to prevent Lessor from enforcing the
full provisions hereof. The subsequent acceptance of rent hereunder by Lessor
shall not be deemed to be waiver of any preceding breach by Lessee of any
term, covenant, or condition of this lease, other than the failure of Lessee to pay
the particular rental so accepted, regardless of Lessor's knowledge of such
preceding breach at the time of acceptance of such rent.
31. NO RIGHT TO HOLD OVER: Lessee has no right to retain possession of the
premises or any part thereof beyond the expiration or termination of this lease.
In the event that Lessee holds over, then the Base Rent shall be increased to
one hundred fifty percent (150%) of the Base Rent applicable during the month
immediately preceding the expiration or termination. Nothing contained herein
shall be construed as consent by Lessor to any holding over by Lessee.
32.QUIET POSSESSION: Lessee will at all times during the terms of this Lease
occupy the premises quietly and not commit any act, waste or nuisance which
disturbs the quiet enjoyment of the property for the Lessor, public, any neighbor
or other tenant of Lessor.
33. ENTIRE UNDERSTANDING: This lease contains the entire and only
understanding and agreement of the parties, and Lessee, by accepting the same,
acknowledges that there is no other written or oral understanding or agreement
between the parties with respect to the demised premises and that this lease
supersedes all prior negotiations, discussions, obligations and rights of the
parties hereto. No waiver, modification, amendment or alteration of this lease
shall be valid unless it is expressly in writing and signed by authorized persons of
the parties hereto. Each of the parties to this lease acknowledges that no other
party, nor any agent or attorney of any other party, has made any promise,
representations, waiver or warranty whatsoever, express or implied, which is not
expressly contained in writing in this lease, and each party further acknowledges
2833 State Street 13
Rosa H. Hernandez
City of Carlsbad - 3-22-06
n
that it has not executed this lease in reliance upon any collateral promise,
representation, waiver or warranty, or in reliance upon any belief as to any fact
not expressly recited in this lease.
34. TIME IS OF THE ESSENCE: Time is of the essence of each and all of the
terms and provisions of this lease.
35. NOTICES: Notices given or to be given by Lessor or Lessee to the other may
be personally serviced upon Lessor or Lessee or any person hereafter
authorized by either in writing to receive such notice or may be served by
certified letter addressed to the appropriate address hereinafter set forth or to
such other address as Lessor and Lessee may hereafter designate by written
notice. If served by certified mail, forty-eight (48) hours after deposit in the U.S.
Mail, service will be considered completed and binding on the party served.
TO LESSEE TO LESSOR
Rosa Hernarndez Mgr.Economic Dev &Real Estate
3603 Terrace Place. 1635 Faraday Avenue
Carlsbad, CA 92008 Carlsbad, CA. 92008
34. ABSTRACT OF LEASE: This is the final Paragraph and Abstract of Lease dated
2006, between the CITY OF CARLSBAD, Lessor and Rosa H.
Hernandez, concerning the Leased Premises, referenced more specifically in Exhibit
"A" ABSTRACT OF LEASE.
2833 State Street 14
Rosa H. Hernandez
City of Carlsbad - 3-22-06
RECORDING REQUESTED BY
AND WHEN RECORDED RETURN TO:
Carlsbad City Clerks Office
1200 Carlsbad Village Drive
Carlsbad, CA 92008
T
i I •
ABSTRACT OF LEASE
his Ab?trqct of Lease , hereinafter "Abstract", dated
. . . ,.t. 2006, between the CITY OF CARLSBAD, Lessor and
Ro\sa H. Hernandez, Lessee, concerning the Leased Premises at 2833 State Street,
Carlsbad , CA 92008.
For good and adequate consideration, Lessor leases the Leased Premises to
Lessee, and Lessee hires for them from Lessor,, for the term and on the provisions
contained in the Lease dated App.\ p> _2006, the Abstract of which is
recorded by the San Diego County Recorder's Office, including without limitation
provisions prohibiting assignment, subleasing, and encumbering said leasehold, as
more specifically set forth in said Lease, which said lease is incorporated in this
Abstract by this reference.
The term of this lease is three (3) years, beginning March 1, 2006, and ending
February 28, 2009.
This Abstract is not a complete summary of the Lease. Provisions in this
Abstract shall not be used in interpreting the Lease provisions. In the event of conflict
between this Abstract and other parts of the Lease, the other parts shall control.
Execution hereof constitutes execution of the Lease itself.
IN WITNESS WHEREOF, each of the undersigned has executed this Abstract as
of the dates set forth in the respective notary acknowledgements attached hereto.
Executed at: Carlsbad. CA
A/13/2006on:on:
By LESSEE:By LESSOR:
CITY OF CARLSBAD
By:
Name Printed:
£-2.
Title:
Name Panted:
Patchett
Raymond R.
Title: City Manager^City of Carlsbad
2833 State Street
Rosa H. Hernandez
City of Carlsbad - 3-22-06
15
Address: 3C03 "t**lf v/LC^_9^CS^clclress: 1200 Carlsbad Village Drive
Carlsbad. CA 92008
Telephone: {$& f^n^^ Telephone: (760 ) 434-2821
Facsimile: ( ) _ Facsimile: (760) 720-9461
Federal ID No.
fS I ^><&j2ji__
ROflALD R. BALL
CITY ATTORNEY
DATE:
2833 State Street 16
Rosa H. Hernandez
City of Carlsbad-3-22-06
LESSOR AND LESSEE HAVE CAREFULLY READ AND REVIEWED THIS LEASE
AND EACH TERM AND PROVISION CONTAINED HEREIN, AND BY THE
EXECUTION OF THIS LEASE SHOW THEIR INFORMED AND VOLUNTARY
CONSENT THERETO. THE PARTIES HEREBY AGREE THAT, AT THE TIME THIS
LEASE IS EXECUTED, THE TERMS OF THIS LEASE ARE COMMERCIALLY
REASONABLE AND EFFECTUATE THE INTENT AND PURPOSE OF LESSOR AND
LESSEE WITH RESPECT TO THE PREMISES.
The parties hereto have executed this Lease at the place and on the dates specified
above their respective signatures.
ff /£Executed at:
on:
By:
Name Printed:
Title:
By:
Name Printed:
Title:
Address:
Executed at: City of Carlsbad
on: 4/13/06
By LESSOR:
CITY OF CARLSBAD
Name Proved:
Patchett
Raymond R.
Title: City Manager. City of Carlsbad
Address: 1200 Carlsbad Village Drive
Carlsbad. CA 92008
Telephone: (760) 434-2821
Facsimile: (760) 720-9461
2833 State Street
Rosa H. Hernandez
City of Carlsbad - 3-22-06
17
Telephone:
Facsimile: ( )
Federal ID No.
RONALD R. BALL
CITY ATTORNEY
Date:
2833 State Street 18
Rosa H. Hernandez
City of Carlsbad-3-22-06
STATE OF CALIFORNIA)
COUNTY OF SAN DIEGO)
On (VWv* ^> g<3D6 before me.cuA^ ^c.^ Cr f O>& Q C
. personal^ appeared ^o QcT~ ^\Y^r ipo^A-^"? -^tVtVL-j J.
personally known to me (or proved to me on the basis of satisfactory evidence) to be
the person(s) whose name(s) is/are subscribed to the within instrument and
acknowledged to me that r)£/she/tj)£y executed the same in h)$/her/tr^ir authorized
capacity(ies), and that by ft^/her/th^tr signature(s) on the instrument the person(s), or
the entity upon behalf of which the person(s) acted, executed the instrument.
WITNESS my hand and official seal.
C~N
Signature V o.
OFFICIAL SEAL
NOTARY PISUC No. 1420323 t-
SWE OF CMJfORNM fTl
LOSANGafSCOUNTj' _i_
j^^
2833 State Street 19
Rosa H. Hernandez
City of Carlsbad-3-22-06