HomeMy WebLinkAbout2011-09-13; City Council; 20668; AGRICULTURAL LEASE LEOCADIO CRUZ RAMOSCITY OF CARLSBAD - AGENDA BILL
^g^7
AB# 20,668
MTG. 9/13/11
DEPT. PEM
APPROVAL OF AGRICULTURAL LEASE
AODCCMCMT \A/ITLJ 1 COfARIPl ("Dl l"7 DAMOCAoKttMtlN 1 VVI 1 n LtUUALJIU UKUZ. KAMUo
FOR TWO CITY PROPERTIES LOCATED
ADJACENT TO COLE LIBRARY
/ L-ill 1
DEPT. DIRbc^&l4 QitfJ-
CITY ATTORNEY f^^
CITY MANAGER .
RECOMMENDED ACTION:
Adopt Resolution No.2011-206 approving a four (4) year agricultural lease agreement
retroactively for the term March 7, 2011 to March 6, 2015, with Leocadio Cruz Ramos for two (2)
properties identified as assessor's parcel number 156-164-63 and 156-190-69, and authorizing the City
Manager to execute all associated lease documents.
ITEM EXPLANATION:
In 1999, the City executed a five (5) year lease agreement with Adrian Chavez for a 1.6 acre vacant
parcel, located immediately east of the Georgina Cole Library parking lot. The City had obtained the
land for future civic uses, but had no specific plans or schedule for development at the time of the
agreement. On January 19, 2001 the City purchased additional property located at 2923 Elmwood
Street, again for future civic uses. The original lease agreement was then amended to include the
smaller parcel for expansion of the agricultural business conducted on these parcels. The combined
properties total 1.84 acres. In 2006, Mr. Chavez retired and sold his business to Mr. Leocadio Cruz
Ramos, who subsequently requested and received a (four) 4 year lease agreement in March, 2007.
This new lease with Mr. Leocadio Cruz Ramos will continue the agricultural use of the subject property.
At this time there are no immediate plans for use of the City owned site. This site may be considered as
part of the forthcoming Real Estate Master Plan; however, staff has evaluated this request and does not
feel that entering into a four (4) year lease agreement will affect any future planning or redevelopment of
the site.
A map of the subject property is included as Exhibit "A" to the lease agreement, which is incorporated
herein as Exhibit "2" to the agenda bill.
ENVIRONMENTAL IMPACT:
The proposed action is exempt from the California Environmental Quality Act (CEQA) pursuant to State
CEQA Guidelines Section 15301-Existing Facilities of the CEQA Guidelines, which exempts projects or
activities that consist of leasing of existing public facilities involving negligible or no expansion of use.
DEPARTMENT CONTACT: Joe Garuba 760-434-2943 joe.garuba@ci.carlsbad.ca.us
FOR CITY CLERKS USE ONLY
COUNCIL ACTION: APPROVED
DENIED
CONTINUED
WITHDRAWN
AMENDED *
D
D
D
CONTINUED TO DATE SPECIFIC
CONTINUED TO DATE UNKNOWN
RETURNED TO STAFF
OTHER -SEE MINUTES
D
D
D
D
Page 2
FISCAL IMPACT:
The lease rate for the property is consistent with other agriculture leases within the City of Carlsbad.
The term of the new lease with be four (4) years, retroactive to March 7, 2011 and ending March 6,
2015. Annual rent revenue will be recorded in the General Fund. The rent structure includes a four
percent (4%) annual increase and is proposed as follows:
Yearl $1,188
Year 2 $1,235
YearS $1,285
Year 4 $1.336
Total Revenue $5,044
EXHIBITS:
1. Adopt Resolution No. 11-206 approving a four-year agricultural lease agreement
retroactively for the term March 7, 2011 to March 6, 2015, with Leocadio Cruz Ramos for two
properties identified as assessor's parcel number 156-164-63 and 156-190-69, and authorizing the
City Manager to execute all associated lease documents.
2. Agricultural Lease Agreement between the City of Carlsbad and Leocadio Cruz Ramos.
•*?J-
1
RESOLUTION NO. 2011-206
2
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
3 CARLSBAD, CALIFORNIA, APPROVING A FOUR-YEAR
AGRICULTURAL LEASE AGREEMENT RETROACTIVELY FOR
4 THE TERM MARCH 7, 2011 TO MARCH 6, 2011, WITH
LEOCADIO CRUZ RAMOS FOR TWO PROPERTIES
5 IDENTIFIED AS ASSESSOR'S PARCEL NUMBER 156-164-63
AND 156-190-69, AND AUTHORIZING THE CITY MANAGER TO
6 EXECUTE ALL ASSOCIATED LEASE DOCUMENTS
7
WHEREAS, the City of Carlsbad ("City") entered into an agricultural lease agreement
8
with Adrian Chavez for subject property in 1999, with the addition of a second property in 2001;
9
and,
10
WHEREAS, Mr. Chavez retired and sold his business to Leocadio Cruz Ramos and the11
City entered into a lease with Mr. Leocadio Cruz Ramos dated March 6, 2007 for the subject12
properties, currently identified as assessor's parcel numbers (APNs) 156-164-63 and 156-190-69
I O
(together the "Agricultural Lease Property"); and,
WHEREAS, Leocadio Cruz Ramos has requested to continue leasing the Agricultural15
Lease Property; and,16
WHEREAS, the City Council of the City of Carlsbad has determined that it is in the best
._ interest of the City to enter into an Agricultural Lease Agreement with Leocadio Cruz Ramos for1o
. n the Agricultural Lease Property retroactively to March 7, 2011; andi y
„„ WHEREAS, the City Council has further determined that it accepts the terms and
21 conditions of the Agricultural Lease Agreement with Leocadio Cruz Ramos;
22 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad,
23 California, as follows:
24 1. That the above recitations are true and correct.
25 2. That the City Manager is authorized to execute the Agricultural Lease Agreement
26 and any other associated lease documents between the City of Carlsbad and
27 Leocadio Cruz Ramos.
28 -)
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
of the City of Carlsbad on the 13th day of September 2011, by the following vote to wit:
AYES: Council Members Hall, Kulchin, Blackburn, Douglas, Packard.
NOES: None.
ABSENT: None.
MATT &ALL, Mayor
ATTEST:
LORRAINE M. WOOD, City Clerk
(SEAL)
CITY OF CARLSBAD
AGRICULTURAL LEASE
LEOCADIO CRUZ RAMOS
Lease Outline
SECTION
Section 1
1.01
1.02
1.03
1.04
1.05
1.06
Section 2
2.01
2.02
2.03
2.04
Section 3
3.01
3.02
3.03
Section 4
4.01
4.02
4.03
4.04
Section 5
5.01
Section 6
6.01
6.02
6.03
6.04
6.05
6.06
6.07
6.08
6.09
PARAGRAPH PAGE
USES
Premises 1
Uses 1
Deletion of Portion of Leased Premises 1
Related Council Action 1
Quiet Possession 1
Easements and Reservations 2
TERM
Commencement 2
Holdover 2
Quitclaim and Surrender of LESSEE'S Interest 3
Termination of Lease 3
RENT
Time and Place of Payment 3
Rent 4
Delinquent Rent 4
ASSIGNMENT
Time is of the Essence; Provisions Binding
on Successors 4
Assignment and Subletting 4
Defaults and Remedies 5
Eminent Domain 6
INSURANCE
Insurance 7
IMPROVEMENTS/ALTERATIONS/REPAIRS
Acceptance of Premises 9
Entry and Inspection and Channel Maintenance 9
Maintenance 10
Improvements/Alterations 10
Utilities 10
Liens 10
Taxes 11
Signs 11
Ownership of Improvements and Personal
Property 11
SECTION PARAGRAPH PAGE
Section 7 GENERAL PROVISIONS
7.01 Notices 12
7.02 Compliance with Law 13
7.03 CITY Approval 13
7.04 Nondiscrimination 13
7.05 Partial Invalidity 13
7.06 Agricultural Provisions 13
7.07 Agricultural Operations 14
7.08 Noxious Weeds, Pests 14
7.09 Employee Housing Prohibited 14
7.10 Entire Understanding 14
Section 8 WARRANTY
8.01 Warranty 15
Section 9 RELOCATION WAIVER
9.01 Relocation Waiver 15
Section 10 EXHIBITS
Exhibit A
CITY OF CARLSBAD
AGRICULTURAL LEASE
THIS LEASE AGREEMENT is executed between THE CITY OF CARLSBAD, a
municipal corporation, hereinafter called "CITY", and Leocadio Cruz Ramos, hereinafter
called "LESSEE".
SECTION 1: USES
1.01 Premises. CITY hereby leases to LESSEE a portion of those certain
real properties, situated in the City of Carlsbad, County of San Diego,
State of California, known as Lease Parcel 1 and Lease Parcel 2, as
described more fully on page 1 of Exhibit A, attached hereto and by this
reference made part of this agreement. The portion of said property to
be leased, hereinafter referred to as the "Premises" or "Leased
Premises", is as shown on page 2 of Exhibit A.
1.02 Uses. It is expressly agreed that the Premises, consisting of
approximately 1.84 ACRES, is leased to LESSEE solely and exclusively
for the purposes of growing annual crops and for such other related or
incidental purposes as may be first approved in writing by the City
Manager or her designee and for no other purpose whatsoever.
LESSEE covenants and agrees to use the Premises for the above
specified purposes and to diligently pursue said purposes throughout the
term hereof. Failure to continuously use the Premises for said purposes,
or the use thereof for purposes not expressly authorized herein, shall be
grounds for termination by CITY.
1.03 Deletion of Portion of Leased Premises. In the event any portion of the
Leased Premises is not used by LESSEE for agriculture use, then CITY
may, at CITY'S option, delete that portion of the Leased Premises not
used by LESSEE from Section 1.01, Premises, hereof. Provided,
however, Section 3, RENT, hereof, shall be adjusted downward by the
City Manager on an equitable basis.
1.04 Related Council Actions. By the granting of this lease, neither CITY nor
the Council of CITY is obligating itself or any other governmental agent,
board, commission, or agency with regard to any other discretionary
action relating to development or operation of the Premises.
Discretionary action includes, but is not limited to rezoning, variances,
environmental clearances or any other governmental agency approvals,
which may be required for the development and operation of the Leased
Premises.
1.05 Quiet Possession. LESSEE, paying the rent and performing the
covenants and agreements herein, shall at all times during the term
peaceably and quietly have, hold and enjoy the Premises. If CITY for
any reason cannot deliver possession of the Premises to LESSEE at the
commencement of the term, or if during the lease term LESSEE is
temporarily dispossessed through action or claim of a title superior to
CITY'S, then and in either of such events, this lease shall not be
voidable nor shall CITY be liable to LESSEE for any loss. A
proportionate reduction of the minimum or flat rate rent for the period or
periods during which LESSEE is prevented from having the quiet
possession of all or a portion of the Premises shall be determined by the
City Manager of City and provided to LESSEE in writing.
1.06 Easements and Reservations.
a. CITY hereby reserves all rights, title and interest in any and all
subsurface natural gas, oil, minerals and water on or within the
Premises.
b. CITY reserves the right to grant and use easements or to establish
and use rights-of-way over, under, along and across the Leased
Premises for utilities, thoroughfares, or access as it deems
advisable for the public good.
c. CITY has the right to enter the Premises for the purpose of making
repairs to or developing municipal resources and services.
However, CITY will reimburse LESSEE for damages, if any, to the
personal property of LESSEE, trade fixtures, alterations or utility
installations, including crops, located on the Leased Premises
resulting from CITY exercising the rights reserved in this section.
Such reimbursement may include a reduction in the rent
proportionate to the amount of damage as determined by CITY.
CITY will pay the costs of maintenance and repair of all CITY
installations made pursuant to these reserved rights.
SECTION 2: TERM
2.01 Commencement. Regardless of the date of execution by the City,
the term of this agreement shall be four (4) years commencing on
March 7, 2011 and terminating March 6, 2015.
2.02 Holdover. Any holding over by LESSEE after expiration or
termination shall not be considered as a renewal or extension of
this lease. The occupancy of the Premises after the expiration or
termination of this agreement constitutes a month-to-month
°i
tenancy, and all other terms and conditions of this agreement shall
continue in full force and effect; provided, however, CITY shall have
the right to apply a reasonable increase in rent to bring the rent to
fair market value and to terminate the holdover tenancy at will upon
thirty (30) days written notice to LESSEE. If at expiration of the
thirty (30) day time period LESSEE still has crops growing,
LESSEE shall be permitted to continue raising and tending the
crops and shall be permitted to harvest the crops for a period of
three (3) months. The right to harvest the crops shall not extend
the term of the lease except that the provisions of this lease, other
than the extension provision shall apply. The right to raise, tend
and harvest shall apply only to crops planted before notice to
terminate has been given.
2.03 Quitclaim and Surrender of LESSEE'S Interest. At termination of
this lease for any reason, LESSEE shall execute, acknowledge and
deliver to CITY, within five (5) days after written CITY demand, a
valid and recordable quitclaim deed covering all of the Premises.
The Premises shall be delivered free and clear of all liens and
encumbrances, and in a decent, safe and sanitary condition.
At the expiration or earlier termination of this lease, LESSEE shall
surrender the Premises to CITY free and clear of all liens and
encumbrances, except those liens and encumbrances which
existed on the date of execution hereof, and in a decent, safe and
sanitary condition.
If LESSEE fails or refuses to deliver the required deed, the CITY
may prepare and record a notice reciting LESSEE'S failure to
execute this lease provision and the notice will be conclusive
evidence of the termination of this lease and all LESSEE'S rights to
the Premises.
2.04 Termination of Lease. Either party may terminate this lease at any
time upon 120 days notice to the other. If at expiration of the 120
day time period LESSEE still has crops growing, LESSEE shall be
permitted to continue raising and tending the crops and shall be
permitted to harvest the crops for a period of three (3) months. The
right to harvest the crops shall not extend the term of the lease
except that the provisions of this lease, other than the extension
provision shall apply. The right to raise, tend and harvest shall
apply only to crops planted before notice to terminate has been
given.
SECTIONS: RENT
3.01 Time and Place of Payment. Rent is to be paid in two (2) equal
installments, semi-annually. Checks should be made payable to
the City of Carlsbad and mailed or delivered to the Finance
Department, 1635 Faraday Avenue, Carlsbad, California 92008.
The place and time of payment may be changed at any time by
CITY upon thirty (30) days written notice to LESSEE. Mailed rental
payments shall be deemed paid upon the date such payment is
postmarked by the postal authorities. If postmarks are illegible, the
payment shall be deemed paid upon actual receipt by the Finance
Department. LESSEE assumes all risk of loss and responsibility for
late payment charges if payments are made by mail.
3.02 Rent.
a. Rent Amount. The initial rent is $1,188.24 annually to be
paid in two (2) equal installments of five hundred ninety four dollars
and twelve cents ($594.12) semi-annually.
b. (1) Annual Adjustments. Commencing on the anniversary
date of this lease agreement, in years 2, 3 and 4 said annual
rent shall increase at a rate of four percent (4%) as follows:
Year 2 $1,235.77 dollars per year
YearS $1,285.20 dollars per year
Year 4 $1,336.61 dollars per year
c. Upon termination pursuant to Section 2.04 of this lease, the
annual rent may be pro-rated as required.
3.03 Delinquent Rent. If LESSEE fails to pay the rent when due,
LESSEE will pay in addition to the unpaid rents, five percent (5%)
of the delinquent rent. If the rent is still unpaid at the end of fifteen
(15) days, LESSEE shall pay an additional five percent (5%) or a
total often percent (10%) of the unpaid amount, including penalties.
Acceptance of late charges and any portion of the late payment by
CITY shall in no event constitute a waiver of LESSEE default with
respect to late payment, nor prevent CITY from exercising any of
the other rights and remedies granted in this lease.
SECTION 4: ASSIGNMENT
4.01 Time is of the Essence: Provisions Binding on Successors. Time is
of the essence for all of the terms, covenants and conditions of this
lease and, except as otherwise provided herein, all of the terms,
covenants and conditions of this lease shall apply to, benefit and
bind the successors and assigns of the respective parties, jointly
and individually.
4.02 Assignment and Subletting. LESSEE shall not assign this lease, or
any interest therein, and shall not sublet the Premises or any part
thereof, or any right or privilege appurtenant thereto, or suffer any
other person, except employees, agents and guests of LESSEE, to
use or occupy the Premises or any part thereof, without the prior
written consent by the City Manager or her designee in each
instance. A consent to assignment, subletting, occupation or use
by any other person shall not be deemed to be a consent to any
subsequent assignment, subletting, occupation or use by another
person. Any such assignment or subletting without such consent
shall be void, and shall, at the option of CITY, terminate this lease.
This lease shall not, nor shall any interest therein, be assignable,
as to the interest of LESSEE, by operation of law, without the
written consent of the City Manager or her designee.
"Assignment", for the purposes of this clause shall include any
transfer of any ownership interest in this lease by LESSEE or by
any partners, principals, or stockholders, as the case may be, from
the original LESSEE, its general partners or principals.
Approval of any assignment or sublease shall be conditioned upon
the assignee or sublessee agreeing in writing that it will assume the
rights and obligations thereby assigned or subleased and that it will
keep and perform all covenants, conditions and provisions of this
agreement which are applicable to the rights acquired.
4.03 Defaults and Remedies.
a. Default. In the event that:
(1) LESSEE shall default in the performance of any
covenant or condition required by this lease to be
performed by LESSEE and shall fail to cure said
default within thirty (30) days following written notice
thereof from CITY; or if any such default is not curable
within thirty (30) days, shall fail to commence to cure
the default(s) within said thirty-day period and
diligently pursue such cure to completion; or
(2) LESSEE shall voluntarily file or have involuntarily filed
against it any petition under any bankruptcy or
insolvency act or law; or
(3) LESSEE shall be adjudicated a bankrupt; or
(4) LESSEE shall make a general assignment for the
benefit of creditors;
b. Abandonment bv LESSEE. Even though LESSEE has
breached the lease and abandoned the property, this lease
shall continue in effect for so long as CITY does not
terminate this lease, and CITY may enforce all its rights and
remedies hereunder, including but not limited to the right to
recover the rent as it becomes due, plus damages.
c. Waiver. Any CITY waiver of a default is not a waiver of any
other default. Any waiver of a default must be in writing and
be executed by the City Manager or her designee in order to
constitute a valid and binding waiver. CITY delay or failure
to exercise a remedy or right is not a waiver of that or any
other remedy or right under this lease. The use of one
remedy or right for any default does not waive the use of
another remedy or right for the same default or for another or
later default. CITY'S acceptance of any rents is not a waiver
of any default preceding the rent payment. CITY and
LESSEE specifically agree that the property constituting the
Premises is CITY-owned and held in trust for the benefit of
the citizens of the City of Carlsbad and that any failure by the
City Manager or her designee or CITY staff to discover a
default shall not result in an equitable estoppel, but CITY
shall at all times, subject to the applicable statute of
limitations, have the legal right to require the cure of any
default when and as such defaults are discovered or when
as the City Council directs the City Manager or her designee
to take action or require the cure of any default after such
default is brought to the attention of the City Council by the
City Manager or her designee or by any concerned citizen.
4.04 Eminent Domain. If all or part of the Premises is taken through
condemnation proceedings or under threat of condemnation by any
public authority with the power of eminent domain, the interests of
CITY and LESSEE (or beneficiary or mortgagee) will be as follows:
6
i3
a. In the event the entire Premises are taken, this lease shall
terminate on the date of the transfer of title or possession to
the condemning authority, whichever first occurs.
b. In the event of a partial taking, if, in the opinion of CITY, the
remaining part of the Premises is unsuitable for the lease
operation, this lease shall terminate on the date of the
transfer of title or possession to the condemning authority,
whichever first occurs.
c. In the event of a partial taking, if, in the opinion of CITY, the
remainder of the Premises is suitable for continued lease
operation, this lease shall terminate in regard to the portion
taken on the date of the transfer of title or possession to the
condemning authority, whichever first occurs, but shall
continue for the portion not taken. The minimum rent shall
be equitably reduced to reflect the portion of the Premises
taken.
d. Award. All monies awarded in any such taking shall belong
to CITY, whether such taking results in diminution in value of
the leasehold or the fee or both; provided, however,
LESSEE shall be entitled to any award attributable to the
taking of or damages to LESSEE'S then remaining leasehold
interest in installations or improvements of LESSEE,
including crops. CITY shall have no liability to LESSEE for
any award not provided by the condemning authority.
e. Transfer. CITY has the right to transfer CITY'S interests in
the Premises in lieu of condemnation to any authority
entitled to exercise the power of eminent domain. If a
transfer occurs, LESSEE shall retain whatever interest it
may have in the fair market value of any improvements
placed by it on the Premises in accordance with this lease so
long as such rights do not unreasonably or substantially
interfere with LESSEE'S operations.
f. No Inverse Condemnation. The exercise of any CITY right
under this lease shall not be interpreted as an exercise of
the power of eminent domain and shall not impose any
liability upon CITY for inverse condemnation.
SECTIONS: INSURANCE
5.01 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 Leased
Premises 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. 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.
CITY 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.
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 CITY evidencing the existence of the
necessary insurance policies shall be kept on file with CITY
during the entire term of this lease. All insurance policies
shall be primary coverage, and will name CITY as an
additional insured, protect CITY against any legal costs in
defending claims and will not terminate without thirty (30)
days written notice to CITY.
8
e. CITY shall retain the right at any time to review the
coverage, form, and amount of the insurance required
hereby. Lessee shall provide copies of said insurance
policies to the Municipal Property Manager on or before
commencement of this lease. If, in the opinion of the CITY,
the insurance provisions in this lease do not provide
adequate protection for CITY and/or for members of the
public using the Leased Premises, CITY may require
LESSEE to obtain insurance sufficient in coverage, form and
amount to provide adequate protection. CITY'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.
CITY shall notify LESSEE in writing of changes in the insurance
requirements and, if LESSEE does not deposit
certificates/endorsements evidencing acceptable insurance policies
with CITY incorporating such changes within thirty (30) days of
receipt of such notice, this lease shall be in default without further
notice to LESSEE, and CITY 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 CITY 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 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.
SECTION 6: IMPROVEMENTS/ALTERATIONS/REPAIRS
6.01 Acceptance of Premises. By signing this lease, LESSEE
represents and warrants that it has independently inspected the
Premises and made all tests, investigations, and observations
necessary to satisfy itself of the condition of the Premises.
LESSEE agrees it is relying solely on such independent inspection,
tests, investigations, and observations in making this lease.
LESSEE further acknowledges that the Premises are in the
condition called for by this lease, that CITY has performed all work
with respect to the Premises, and that LESSEE does not hold CITY
responsible for any defects in the Premises.
6.02 Entry and Inspection. CITY reserves and shall always have the
right to enter said Premises for the purpose of viewing and
ascertaining the condition of the same, or to protect its interests in
the Premises, or to inspect the operations conducted thereon. In
the event that such entry or inspection by CITY discloses that said
Premises are not in a decent, safe, healthy, and sanitary condition,
CITY shall have the right, after ten (10) days written notice to
LESSEE, to have any necessary maintenance work done at the
expense of LESSEE, and LESSEE hereby agrees to pay promptly
any and all costs incurred by CITY in having such necessary
maintenance work done, in order to keep said Premises in a
decent, safe, healthy, and sanitary condition. Further, if at any time
CITY determines that said Premises are not in a decent, safe,
healthy, and sanitary condition, CITY may its sole discretion,
without additional notice, require LESSEE to file with CITY a faithful
performance bond to assure prompt correction of any condition
which is not decent, safe, healthy and sanitary. Said bond shall be
in an amount adequate in the opinion of the CITY to correct the
said unsatisfactory condition. The rights reserved in this section
shall not create any obligations on CITY or increase obligations
elsewhere in this lease imposed on CITY.
6.03 Maintenance. Except as hereinafter provided, LESSEE agrees to
assume full responsibility and cost for the operation and
maintenance of the Premises throughout the term. LESSEE will
perform all such repairs and replacements necessary to maintain
and preserve the Premises in a decent, safe, healthy and sanitary
condition satisfactory to CITY and in compliance with all applicable
laws. Appropriate codes and standards of CITY, state and federal
agencies shall be observed in all maintenance, repairs and
replacements on the Premises.
n
6.04 Improvements/Alterations. No improvements, structures, or
installations shall be constructed on the Premises, and the
Premises may not be altered by LESSEE without prior written
approval by the City Manager or her designee. In addition to
written approval, LESSEE must obtain all necessary permits and
remain compliant with the CITY'S regulations. This provision shall
not relieve LESSEE of any obligation under this lease to maintain
the Premises in a decent, safe, healthy, and sanitary condition,
including structural repair and restoration of damaged or worn
improvements. CITY shall not be obligated by this lease to make or
assume any expense for any improvements or alterations.
6.05 Utilities. LESSEE agrees to order, obtain and pay for all utilities
and service and installation charges in connection with the
development and operation of the Leased Premises.
6.06 Liens. LESSEE shall at all times save CITY free and harmless and
indemnify CITY against all claims for labor and materials in
connection with operations, improvements, alterations, or repairs
on or to the Premises and the costs of defending against such
claims, including reasonable attorney's fees.
If improvements, alterations, or repairs are made to the Premises
by LESSEE or by any party other than CITY, and a lien or notice of
lien is filed, LESSEE shall within five (5) days of such filing either:
a. take all actions necessary to record a valid release of lien, or
b. file with CITY a bond, cash, or other security acceptable to
CITY sufficient to pay in full all claims of all persons seeking
relief under the lien.
6.07 Taxes. LESSEE agrees to pay, before delinquency, all taxes,
assessments, and fees assessed or levied upon LESSEE or the
Premises, including the land, any buildings, structures, machines,
equipment, appliances, or other improvements or property of any
nature whatsoever erected, installed or maintained by LESSEE or
levied by reason of the business or other LESSEE activities related
to the Leased Premises, including any licenses or permits.
LESSEE recognizes and agrees that this lease may create a
possessory interest subject to property taxation, and that LESSEE
may be subject to the payment of taxes levied on such interest, and
that LESSEE shall pay all such possessory interest taxes.
LESSEE further agrees that payment for such taxes, fees and
assessments will not reduce any rent due CITY.
11
6.08 Signs. LESSEE agrees not to erect or display any banners,
pennants, flags, posters, signs, decorations, marquees, awnings, or
similar devices or advertising without the prior written consent of
CITY. If any such unauthorized item is found on the Premises,
LESSEE agrees to remove the item at its expense within 24 hours
notice thereof by CITY, or CITY may thereupon remove the item at
LESSEE'S cost.
6.09 Ownership of Improvements and Personal Property.
a. Any and all improvements, trade fixtures, structures and
installations or additions to the Premises now existing or
constructed on the Premises by LESSEE, including crops,
shall at lease expiration or termination be deemed to be part
of the Premises and shall become, at CITY'S option, CITY'S
property, free of all liens and claims except as otherwise
provided in this lease.
b. If CITY elects not to assume ownership of all or any
improvements, trade fixtures, crops, structures and
installations, CITY shall so notify LESSEE thirty (30) days
prior to termination or one-hundred-eighty (180) days prior to
expiration, and LESSEE shall remove all such
improvements, structures and installations as directed by
CITY at LESSEE'S sole cost on or before lease expiration or
termination. If LESSEE fails to remove any improvements,
structures, and installations as directed, LESSEE agrees to
pay CITY the full cost of any removal.
c. LESSEE-owned machines, appliances, equipment (other
than trade fixtures), and other items of personal property
shall be removed by LESSEE by the date of the expiration or
termination of this lease. Any said items which LESSEE fails
to remove will be considered abandoned and become
CITY'S property free of all claims and liens, or CITY may, at
its option, remove said items at LESSEE'S expense.
d. If any removal of such personal property by LESSEE results
in damage to the remaining improvements on the Premises,
LESSEE agrees to repair all such damage.
e. Any necessary removal by either CITY or LESSEE which
takes place beyond said expiration or termination thereof
shall require LESSEE to pay rent to CITY at the rate in effect
immediately prior to said expiration or termination.
12
f. Notwithstanding any of the foregoing, in the event LESSEE
desires to dispose of any of its personal property used in the
operation of said Premises upon expiration or termination of
this lease, then CITY shall have the first right to acquire or
purchase said personal property.
SECTION 7: GENERAL PROVISIONS
7.01 Notices.
a. Any notice required or permitted to be given hereunder shall
be in writing and may be served personally or by United
States mail, postage prepaid, addressed to LESSEE at the
Leased Premises or at such other address designated in
writing by LESSEE; and to CITY as follows:
City Manager
1200 Carlsbad Village Drive
Carlsbad CA 92008
Copies to:
Municipal Property Manager
405 Oak Ave
Carlsbad CA 92008
or to any mortgagee, trustee, or beneficiary as applicable, at
such appropriate address designated in writing by the
respective party.
Contact for LESSEE:
Leocadio Cruz Ramos
2435 Pruett Dr.
Vista, CA 92084
b. Any party entitled or required to receive notice under this
lease may by like notice designate a different address to
which notices shall be sent.
7.02 Compliance with Law. LESSEE shall at all times in the
construction, maintenance, occupancy and operation of the
Premises comply with all regulations of CITY, County, State and
Federal Governments at LESSEE'S sole cost and expense. In
addition, LESSEE shall comply with any and all notices issued by
the City Manager or her designee under the authority of any such
law, statute, ordinance, or regulation.
7.03 CITY Approval. The approval or consent of CITY, wherever
required in this lease, shall mean the written approval or consent of the
City Manager or her designee unless resolution by the City Council is
required in the City Manager's discretion.
7.04 Agricultural Provisions. LESSEE shall use standard
agricultural practices in growing; tending and harvesting said crops and
shall not use the property in such a manner as to constitute a nuisance
to adjoining property owners or lessees. LESSEE shall comply with the
following requirements:
a. Only drip type irrigation shall be used.
b. All plastic material and debris shall be completely removed
from the property at the completion of the lease.
c. No aerial application of pesticides or fertilizers shall be
permitted.
d. All pesticide applications shall be approved and supervised
by the county agricultural office, with all necessary permits
obtained from county in advance. A complete record of
fertilization and pesticide application must be kept and made
available upon request by CITY.
e. No uncovered storage of pesticides, herbicides, or fertilizers.
f. No unsightly storage of weeds, trash or other debris, in the sole
determination of the City Manager.
g. Access roads shall be limited to those approved by the City
Manager or her designee and shall not cause erosion problems.
h. Leased Premises to be maintained in a neat and orderly
condition at all times. This shall include the cutting and removal
of all weeds and other non-productive plant materials from the
Premises and maintenance of all temporary agricultural fencing,
stakes and plastic sheeting in good condition, untorn, and
unbroken, or otherwise unsightly, in the sole determination of
the City Manager.
7.05 Agricultural Operations. LESSEE agrees to abide by the
conditions for agricultural operations set forth herein. Failure of LESSEE
to cease or cure any unauthorized practice within thirty (30) days after
14
written notice to do so shall constitute at the option of CITY, an
immediate termination of the lease.
7.06 Noxious Weeds. Pests, and Erosion. LESSEE shall take
proper corrective action, to the satisfaction of CITY, to prevent the
infestation of noxious weeds, pests, and erosion throughout the entire
Premises.
7.07 Employee Housing Prohibited. LESSEE shall not provide
housing for employees or any other persons on the property. LESSEE
shall not permit LESSEE'S employees or any other persons to reside
upon the property in any way.
7.08 Nondiscrimination. LESSEE agrees not to discriminate in any
manner against any person or persons on account of race, marital
status, sex, religious creed, color, ancestry, national origin, age or
physical handicap in LESSEE'S use of the Premises, including, but not
limited to the providing of goods, services, facilities, privileges,
advantages, and accommodations, and the obtaining and holding of
employment.
7.09 Partial Invalidity. If any term, covenant, condition or provision
of this lease is found invalid, void or unenforceable by a court of
competent jurisdiction, the remaining provisions will remain in full force
and effect.
SECTION 8: WARRANTY
8.01 Warranty. The CITY does not warrant that the Premises are
suitable for the agricultural purposes for which they are leased.
SECTION 9: RELOCATION WAIVER
9.01 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.
SECTION 10: ENTIRE UNDERSTANDING
10.01 Entire Understanding. This lease contains the entire understanding
of the parties. LESSEE, by signing this agreement, aggress that there is no
15
other written or oral understanding between the parties with respect to the
Leased Premises. Each party has relied on its own examination of the
Premises, advice from its own attorneys, and the warranties,
representations, and covenants of the lease itself. Each of the parties in this
lease agrees that no other party, agent, or attorney of any other party has
made any promise, representation, or warranty whatsoever which is not
contained in this lease.
The failure or refusal of any party to read the lease or other documents, inspect the
Premises, and obtain legal or other advice relevant to this transaction constitutes a
waiver of any objection, contention, or claim that might have been based on these
actions. No modification, amendment, or alteration of this lease will be valid unless it is
in writing and signed by all parties.
IN WITNESS WHEREOF, this Lease Agreement is executed by CITY, acting by and
through its City Manager or her designee, and by LESSEE, acting by and through its
lawfully authorized officers.
THE CITY OF CARLSBAD
Date
£"o':/ESTABLISHED\^|
111 1970 jj =C. o,'-. ..• f >
Printed Name Date
Note: Signature of Lessee must be notarized.
APPROVED as to form this ' day of ^>7*fa~ ****>- 2.Q Cl
By \ \\. o,^- <^~>, \^_ . \ <XGt30^
City Attorney
16 33-
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE § 1 189
State of California
County of
On
Date
personally appeared
before me,S> SnlT\ *2~ .
L£££ad CO
Here Insert Name and Title of the Officer
Name(s) of Signer(s)
SUSANS SAIN?
Commission # 1922709
Notary Public - California *
San Diego County *
who proved to me on the basis of satisfactory
evidence to be the person^) whose name^s) is/afe
subscribed to the within instrument and acknowledged
to me that (h^teho/thoy executed the same in
authorized capacity(tes), and that by
signature^*)- on the instrument the
person^, or the entity upon behalf of which the
personfe) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the
laws of the State of California that the foregoing
paragraph is true and correct.
WITNESS my hand and official seal.
S-^
Place Notary Seal Above
Signature: ^^
OPTIONAL
Signature of Notary Public
Though the information below is not required by law, it may prove valuable to persons relying on the document
and could prevent fraudulent removal and reattachment of this form to another document.
Description of Attached Document
Title or Type of Document:
*x.Document Date:Number of Pages:.
Signer(s) OtheSQaan Named Above:
Capacity(ies) Claim^cWjy Signer(s)
Signer's Name:
D Corporate Officer — Title(s):
D Individual
D Partner — U Limited 11 General
D Attorney in Fact
D Trustee
D Guardian or Conservator ^^
D Other: ^
RIGHT THUMBPRINl
OF SIGNER
Top of thumb here
__ Signer's Name:
__ D CorporatejSfficer — Title(s):.
D Individual^-'
Signer Is ReiJfesenting:
partner — LJ Limited LJ General
D Attorney in Fact
D Trustee
D Guardian or Cons^fvator
D Other:
RIGHT THUMBPRINT
OF SIGNER
Top of thumb here
Signer Is Representing:
e> 2010 National Notary Association • NationalNotary.org • 1-800-US NOTARY (1-800-876-6827)Item #5907
Page 1 of 2
Exhibit A
Legal Descriptions
Leased Parcel 1
The Southerly 100 feet of the Northerly 200 feet of that portion of the Northwest Quarter of
Section 6, Township 12 South, Range 4 West, San Bernardino Meridian, in the City of Carlsbad,
County of San Diego, State of California, according to United States Survey approved, October
25, 1875 and more particularly described as follows:
Beginning at a concrete monument at the Northeast corner of Tract 117 of Carlsbad Lands,
according to Map No. 1661 on file in the Office of the County Recorder of San Diego County;
thence along the Northerly line of said Tract 117, North 89°57' West 147.01 feet to an
intersection with Southerly prolongation of the Easterly line of the land described in the deed
from the South Coast Land Company, to Louis P. Hoffman and Annie Hoffman, dated April 16,
1930, and recorded April 28,1930 in Book 1763 Page 358 of Deeds; thence North 0°55' West
along said prolongation and Easterly line of the land so described in deed to Hoffman, 342.53
feet to the Northeasterly corner thereof; thence North 89°52'38" East 147.01 feet to the
Westerly boundary line of Tract 119 of Carlsbad Lands according to said Map No. 1661; thence
along the Westerly line of said Tract 119, South 0°55' East 342.97 feet to the Point of the
beginning.
Leased Parcel 2
Parcel 1 of Parcel Map No. 15282 in the City of Carlsbad, County of San Diego, State of
California, filed in the office of the County Recorder of San Diego County, June 30,1988 as
File/Page No. 88-317307 of Official Records.
Exhibit A
Leocadio Cruz Ramos Agricultural Lease fora portion Lease Parcel 1 & Lease Parcel 2
Page 2 of 2
Boundary of Leased Premises
Boundary of Lease Parcel