HomeMy WebLinkAbout1999-12-14; City Council; 15531; Lease Agreement For 2833 State StreetCITY OF CARLSBAD -AGENDA BILL
AB# I<531 =:
APPROVE LEASE AGREEMENT WITH THE VILLAGE MTG. 17/14/99 GRILLE FOR USE OF CITY-OWNED PROPERTY
AT 2833 STATE STREET DEPT. PW/GS CITY MO@
RECOMMENDED ACTION:
Adopt Resolution No. q?-sa authorizing the City Manager to execute the lease
agreement between the City of Carlsbad and The Village Grille
ITEM EXPLANATION:
The City of Carlsbad is the current owner of the real property at 2833 State Street.
Since 1992, The Village Grille’s owner, C.J. Perrigo, has been leasing the 775
square foot facility from the City to operate a restaurant business. The current lease
has expired and The Village Grille’s new owner, C.J. Perrigo’s son Dale, has
expressed interest to continue leasing this facility.
Staff has negotiated with The Village Grille a new three (3) year lease agreement
with the option to extend the term for two (2) additional one (1) year periods. If the
City desires to redevelop this property, the City can terminate the lease anytime after
completion of the first year of the lease by first giving one hundred twenty (120) days
written notice.
The Village Grille has agreed to pay the City $922.25 a month in year one, $949.92 a
month in year two and $978.41 a month in year three. Staff has prepared the new
lease, attached hereto as Exhibit 2, which has been reviewed and approved as to
form by the City Attorney’s office.
FISCAL IMPACT:
The new lease agreement with The Village Grille will generate $11,667 in revenues
during year one and increase to $11,741 in revenues during year three.
EXHIBITS:
1. Resolution No. 99-5-u authorizing the City Manager to execute the lease
agreement between the City of Carlsbad and The Village Grille
2. Lease Agreement
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RESOLUTION NO. 99-522
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROVING A LEASE AGREEMENT WITH THE VILLAGE GRILLE FOR USE OF CITY-OWNED PROPERTY AT 2833 STATE STREET
WHEREAS, the City of Carlsbad is the owner of the real property at 2833 State Street;
and
WHEREAS, The Village Grille desires to use said property to operate a business; and
WHEREAS, City staff has negotiated with The Village Grille and secured a three year
lease agreement in which the City will receive $922.25 a month in year one, $949.92 a month in
year two and $978.41 a month in year three.
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 Lease Agreement between the City of Carlsbad and The Village Grille
attached hereto as Exhibit 2 is hereby approved.
3. That the City Manager is hereby authorized to sign the lease agreement on behalf of
the City.
PASSED, APPROVED AND ADOPTED at a regular meeting of the Carlsbad City Council
held on the 14th day of DECEMBER , 1999, by the following vote, to wit:
11, Finnila, Nygaard, Kulchin
ATTEST:
KAREN R. KUNDTZ, A&!stant City Clerk
(SEAL)
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CITY OF CARLSBAD
LEASE TO
Dale Penigo-d.b.a. The Village Grille
OF PROPERTY LOCATED AT
2833 State
Carlsbad, CALIFORNIA
FOR 3 YEARS
COMMENCING 12/20/99
AND ENDING 12/20/02
PREAMBLE.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..a.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..a. . . . . . . . . . . . . . . . . . . . 1
1.
2.
3.
4.
5.
6.
7.
8.
9.
TERM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................. 1
RENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .................. 1
USE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..................... 2
EARLY TERMINATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
IMPROVEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
LIENS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................. 2
LEASE ENCUMBRANCE ..,...................................................................................................... 2
ASSIGNMENT-SUBLEASE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
DEFAULT . . . . . . . . . . . . . . . . 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
10. BANKRUPTCY ......................................................................................................................... 4
11. EMlNENTDOMAIN ................................................................................................................. 4
12. SUPERSEDURE ........................................................................................................................ .4
13. USE OBLIGATION .................................................................................................................. .5
14. MAINTENANCE AND REPAIR ............................................................................................. .5
15. TAXES AND UTILITIES ......................................................................................................... .5
16. CONFORMANCE WITH RULES AND REGULATIONS ...................................................... 5
17. NON-DISCRIMINATION ......................................................................................................... 6
18. PARTIAL INVALIDITY .......................................................................................................... .6
19. HOLD HARMLESS .................................................................................................................. .6
20. SUCCESSORS IN INTEREST .................................................................................................. .
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21. EASEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . m . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... 6
22. INSURANCE..............................................................................................................................6
23. WARRANTIES-GUARANTEES-COVENANTS . . . . . . . . . . . . . . . . . . . . . . . . ..,.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
24. DAMAGE TO OR DESTRUCTION OF PREMISES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
25. QUITCLAIM OF LESSEE’S INTEREST UPON TERMINATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..I...... 8
26. PEACEABLE SURRENDER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
27. WAIVER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............ 8
28. HOLD OVER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...... 9
29. SECTION HEADINGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
30. ENTIRE UNDERSTANDING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
3 1. TIME IS OF THE ESSENCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
32. ATTORNEY’S FEES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
33. NOTICES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .......... 9
34. REMOVAL OF MATERIALS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..~................................. 10
35. ACCEPTANCE OF PREMISES . . . . . . . . . . . . . . . . . . s . . . . . . . . . . . . . . . .,.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . a . . . . . . . . . . . . . 10
36. QUIET POSSESSION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
37. GENDER/SINGULAR/PLURAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
38. EQUAL EMPLOYMENT OPPORTUNITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
39. ABSTRACT OF LEASE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
LEASE AGREEMENT
THIS LEASE AGREEMENT, made and entered into this 20th byof DECEMBER .1999,
by and between the City of Carlsbad, hereinafter called “City”, and Dale Perrigo-d.b.a. The Village
Grille, hereinafter called “Lessee”, without reference to number or gender, whose address is 2833 State,
Carlsbad, CA 92008.
WITNESSETH:
WHEREAS, the City of Carlsbad is the owner of the real property delineated on Exhibit “A”; and
WHEREAS, Lessee desires use of said City Premises to operate a business (as defined below);
NOW THEREFORE, it is understood and agreed by and between the parties hereto as follows, to wit:
TO HAVE AND TO HOLD said lease 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 3 years commencing on 12 120 ,1999,
and ending on 12120 / 0 2 s unless sooner terminated as herein provided. Upon the expiration of
this lease, the Lessee shall have the option to extend the term for two (2) additional one (1) year
periods, provided that there is mutual agreement upon the rental amount for the additional periods.
Lessee must exercise this option in writing at least 120 days prior to the lease terms expiration.
2. RENT:
(a) As and for the rent, Lessee agrees to pay to City the sum of nine hundred twenty two dollars
and twenty five cents ($922.25) per month, payable in advance on or before the first day of
each and every month during the term of this Agreement. The initial rent is calculated at
$1.19 per square foot for a total of 775 square feet as reflected in Exhibit “A”.
(b) Rent shall be delivered to the Finance Department of the City of Carlsbad at 1200 Carlsbad
Village Drive, Carlsbad, California 92008. The designated place of payment and filing may
be changed at any time by City 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 City
Manager of City shall have the right to waive for good cause any interest payment upon
written application of Lessee for any such delinquency period.
(d) Commencing on the anniversary date of this lease in years two (2) and three (3) said monthly
rent shall increase as follows if the lease is still in effect:
Year 2: Nine hundred forty nine dollars and ninety-two cents ($949.92) per
month.
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Year 3: Nine hundred seventy eight dollars and forty-one cents ($978.41) per
month.
(e) Lessee shall have an option to extend the term of this lease conditional upon mutual
agreement upon the monthly rent for the new term.
3. USE: Lessee agrees that the leased premises shall be used only and exclusively for Restaurant
and for no other purposes whatsoever without the written consent of City, evidenced by resolution,
first had and obtained.
4. EARLY TERMINATION: CITY AND LESSEE SHALL EACH have the right to terminate
and Lease anytime after completion of the FIRST YEAR of this lease by first giving one hundred
twenty (120) days prior written notice to the other party.
5. IMPROVEMENTS: Lessee may, at its own expense, make any interior alterations or changes
in the leased premises or cause to built, made or installed thereon any structures, machines,
appliance, 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 and proper permits and in accordance with plans and
specifications previously submitted to and approved in writing by the Public Works Manager of City.
Lessee further agrees that no banner, pennants, flags, eye-catching spinners or other advertising
devices, nor any temporary signs shall be permitted to be flown, installed, placed, or erected on the
premises except in accordance with the City of Carlsbad ordinance Chapter 21.41.
6. LIENS: Lessee agrees that it will at all times save City free and harmless and indemnify it
against all claims for labor or materials in connection with improvements, repairs, or alterations on
the lease premises, and the costs of defending against such claims, including reasonable attorney’s
fees.
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 there, the Lessee shall, upon written request of City, deposit with
City a bond conditioned for the payment in full of all claims upon which said lien or levy has been
tiled. 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. City 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 City within ten (10) days after
written request has been delivered to Lessee.
7. LEASE ENCUMBRANCE: Lessee understands and agrees that it cannot encumber the lease,
leasehold estate and the improvements thereon by a deed of trust, mortgage or other security
instrument to assure the payment of the promissory note of Lessee without the prior express written
consent by resolution of said City in each instance. If any deed of trust, mortgage or other security
instrument that encumber the lease, leasehold estate and the improvements thereon is entered into by
Lessee without City’s prior express written consent, City shall have the right to declare this lease in
default.
If a deed of trust, mortgage, or other security instrument which City has consented by resolution,
should at any time be in default, before Lessee’s interest under said lease may be sold as part of any
foreclosure or trustee’s sale or be assigned in lieu of foreclosure, the prior express written consent by
resolution of City shall be obtained in each instance. However, the original beneficiary of the deed
of trust, the original mortgagee of the mortgage, and the original holder of the security instrument,
which the City has consented to by resolution, may purchase the Lessee’s interest at a foreclosure or
trustee’s sale or accept assignment of the lease in lieu of foreclosure, without the requirement of any
further consent on the part of City provided said party, as an express condition precedent, agrees in
writing to assume each and every obligation under the lease. Furthermore, before any said original
beneficiary, mortgagee, or holder of a security instrument, or any other consented-to assignee or
purchaser may subsequently assign or sublet any of the leasehold or Lessee’s interest, it shall obtain
the City’s prior written consent by resolution. The decision of the City Council of the City as to such
assignee, purchaser, or subtenant shall be final.
8. ASSIGNMENT-SUBLEASE: Lessee shall not assign or transfer the whole or any part of this
lease or any interest therein, 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, nor permit transfer of the lease of possession of
the leased premises by merger, consolidation or dissolution, nor permit sale of a controlling interest
in the voting stock in said corporation without the consent of City, evidenced by resolution, first had
and obtained in each instance.
No assignment, voluntary or involuntary, in whole or in part of the lease or any interest therein, and
no sublease of the whole or any part of the leased premises, and no contract for the management or
operation of the whole or any part of the leased premises, and no permission to any person to occupy
the whole or without the consent of City, first had and obtained in each instance; provided, however,
that nothing herein contained shall be construed to prevent the occupancy of said premises by any
employee or business invitee of Lessee.
9. DEFAULT: 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
fUfil1 in any manner the uses and purposes for which said premises are lease as above stated, and
such default shall not be cured within or ten (10) day after written notice thereof if default is in the
performance of the use obligation provisions pursuant to paragraph 11 of this lease, or thirty (30)
days after written notice thereof if default is in the payment of rent, or sixty (60) days after written
notice thereof if default is in the performance of any other covenant, condition and agreements (any
covenant or agreement shall be construed and considered as a condition), City shall have the right to
immediately terminate this lease; and that in the event of such termination, Lessee shall have no
further rights hereunder and Lessee shall thereupon forthwith remove from said premises and shall
have no further right to claim thereto, and City shall immediately thereupon, without recourse to the
courts, have the right to reenter and take possession of the lease premises. City 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 City for all the detriment
proximately caused by the Lessee’s failure to perform his obligations under the lease or which in the
ordinary course of things would be likely to result therefrom.
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In the event City consents to an encumbrance of the Lease for security purposes in accordance with
paragraph 7 of this lease, it is understood and agreed that City shall furnish copies of all notices of
defaults to the beneficiary or mortgagee under said encumbrance by certified mail
contemporaneously with the furnishing of said notices to Lessee, and in the event Lessee shall fail to
cure such default or defaults within the time allowed above, said beneficiary or mortgagee shall be
afforded the right to cure such default at any time within fifteen (15) days following the expiration of
the period within which Lessee may cure such default, provided, however, City shall not be required
to furnish any further notice of default to said beneficiary or mortgagee.
In the event of the termination of this lease pursuant to the provisions of this paragraph, City shall
have any rights to which it would be entitled in the event of the expiration or sooner termination of
this lease.
10. 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 a bankruptcy
proceeding, reorganization, arrangement, insolvency, receivership, liquidation, or dissolution
proceedings, or in the event of any judicial sale of Lessee’s interest under this lease, City shall have
the right to declare this lease in default.
The conditions of this paragraph shall not be applicable or binding on Lessee or the beneficiary in
any deed of trust, mortgage, or other security instrument on the demised premises which is of record
with City and has been consented to by resolution of said City, or to said beneficiary’s successors in
interest consented to by resolution of City, as long as there remains any monies to be paid by Lessee
to such beneficiary under the terms of such deed of trust; provided that such beneficiary or its
successors in interest, continuously pay to the City all rent due or coming due under the provisions of
this lease and the premises are continuously and actively used in accordance with paragraph 13 of
this lease.
11. EMINENT DOMAIM If the whole or a substantial part of the premises hereby leased shall
be taken by any public authority under the power of eminent domain, then the term of this lease shall
cease as to the part so taken, from the day the possession of that part shall be taken for any public
purpose, and the rent shall be paid up to that day, and from that day Lessee shall have the right either
to cancel this lease and declare the same null and void or to continue in the possession of the
remainder of the same under the herein provided, except that the minimum rent shall be reduced in
proportion to the amount of the premises taken. All damages awarded for such taking shall belong to
and be the property of City whether such damages shall be awarded as compensation for diminution
in value to the lease hold or to the fee of the premises herein leased; provided, however, that City
shall not be entitled to any award made for the taking of any installations or improvements on the
leased premises belonging to Lessee.
12. SUPERSEDURE: This lease upon becoming effective shall supersede and annul any and all,
leases or rental agreements heretofore made or issued for the leased premises between City and
Lessee, and any such, leases or rental agreements shall hereafter be void and of no effect except as to
any rentals and/or fees which may have accrued thereunder or any rights and remedies granted to
City under such agreements.
13. USE OBLIGATION: Lessee shall actively and continuously use and operate the premises for
the limited particular exclusive use as expressly provided for in the Use paragraph (3) of this lease,
except for failure to so use caused by reason of wars, strikes, riots, civil commotion, acts of public
enemies, and acts of God. Lessee, however, 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 expressed in said Use paragraph (3).
14. MAINTENANCE AND REPAIR: As part of the consideration for the leasing thereof, Lessee
agrees to assume full responsibility for the interior operation, maintenance, including painting, and
repair of the premises, throughout the term and without expense to the City. 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 City and in compliance
with all applicable laws. Lessee further agrees to provide approved containers for trash and garbage
and to keep premises free and clear of rubbish and litter, or any other fire hazards. Lessee waives all
right to make repairs at the expense of City as provided in Section 1942 of the California Civil Code
and all rights provided by Section 1941 of said Code. Lessor shall be responsible for all exterior
maintenance, including roof repairs.
For the purpose of keeping the premises in a good, safe, healthy and sanitary condition, City 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 no in the condition described,
Lessee must perform the necessary maintenance work within ten (10) days after written notice from
City. Further, if at any time City determines that the premises are not in the condition described,
City may require Lessee to tile and pay for a faithful performance bond, to assure prompt correction
without additional notice. The amount of this bond shall be adequate, in City’s opinion, to correct
the unsatisfactory condition. Notwithstanding, City shall not be required at any time to maintain or to
make any improvements or repairs whatsoever on or for the benefit of the leased premises. The
rights reserved in this section shall not create any obligations or increase any obligations for City
elsewhere in this Lease.
15. TAXES AND UTILITIES: This lease may result in a taxable possessory interest and be
subject to the payment of property taxes. Lessee agrees to and shall pay before delinquency all taxes
and assessments of any kind assessed or levied upon Lessee or the leased premises by reason of this
lease or of any buildings, 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, and
shall pay before delinquency any and all charges for utilities at or on the leased premises. If lessee
fails to pay said taxes, City may declare default in accordance with paragraph 9. Lessee shall be
responsible for payment of all utilities.
16. 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 other improvements, it will abide by and
conform to all ordinances, rules and regulations prescribed by the City of Carlsbad, including the
Building Code, and any applicable laws of the State of California and Federal Government, as any of
the same now exist or may hereafter be adopted or amended.
5
17. 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.
18. 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.
19. HOLD HARMLESS: Lessee shall defend, indemnify, and hold harmless City, its officers and
employees against causes of action, liability, damage, and expense, including reasonable attorney’s
fees, for judicial relief of any hind, for damage to property of any hind whatsoever and to whomever
belonging, including without limitation Lessee or its employees, or injury or death of any person or
persons, including without limitation Lessee or its employees, resulting directly 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.
20. 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 all the parties hereto, all of whom shall be jointly and severally liable hereunder.
21. 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 City 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 City to be in the best interests of the
development of the tidelands.
City 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.
22. INSURANCE: Lessee shall maintain insurance acceptable to City in full force and effect
throughout the term of this lease. The policies for said insurance shall, as a minimum, provide the
following forms of coverage:
A. . . . save Gen&bihty (covering premises and operations) in the amount of
not less than One Million Dollars ($1 ,OOO,OOO) combined single limit. This policy shall
cover any injury or damage, including death, suffered by any party, for any act,
committed by anyone, including City.
B. &tperty Insurance - Lessee agrees to provide coverage for tenant improvements,
betterments and personal property. Additionally, lessee will provide business
interruption coverage to ensure that lease payments will continue uninterrupted in the
event of the partial or total loss of the building. Lessor will be responsible for providing
coverage for the structure itself, exclusive of the items required to be covered by lessee’s
insurance policy.
C. Evidence of Ins- - Certificates in a form acceptable to City evidencing the
existence of the necessary insurance policies, in conformance with City Council
Resolution No. 91-403, shall be kept on file with City during the entire term of this
lease. All insurance policies will name City as an additional insured, protect City against
any legal costs in defending claims and will not terminate without written notice to City.
All insurance companies providing coverage pursuant to this agreement must meet
City’s minimum standards and be licensed to do business in California.
City 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 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 an 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 evidencing acceptable insurance policies with City
incorporating such changes within sixty (60) 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.
The procuring of such policies of insurance shall not be construed to limit Lessee’s
liability hereunder, not to fulfil1 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.
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.
23. WARRANTIES-GUARANTEES-COVENANTS: City 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 City will not be
responsible for any loss, damage or costs which may be incurred by Lessee by reason of any such
condition or conditions.
24. 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 the improvements located within
the demised premises or in the event the improvements located within the demised premises are
declared unsafe or unfit for use or occupancy by a public entity with the authority to make and
enforce such declaration, 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 City; provided, however, Lessee shall not be obligated to repair,
reconstruct or replace the improvements following their destruction in whole or substantial part
except to the extent the loss is covered by insurance required to be carried by Lessee pursuant to
paragraph 22 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.
25. 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 City within thirty (30) days after receipt of written demand
therefor a good and sufficient deed whereby all right, title and interest of Lessee in the demised
premises is quitclaimed to City. Should Lessee fail or refuse to deliver the required deed to City,
City 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.
26. PEACEABLE SURRENDER: Upon the expiration of this lease or sooner termination or
cancellation thereof, as herein provided, Lessee will peaceably surrender said premises to City 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 City 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.
27. WAIVER Any waiver by City of any breach by Lessee of any one or more of the covenants,
conditions, or agreements of this lease shall not 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 City 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 City from enforcing the full provisions hereof. The subsequent acceptance of
rent hereunder by City 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 City’s knowledge of such preceding breach at the time of acceptance of
such rent.
8
28. HOLD OVER This lease shall terminate without further notice at expiration of the term.
Any holding over by Lessee after either expiration or termination shall not constitute a renewal or
extension or give Lessee any rights in or to the leased premises. If Lessee, with City’s consent,
remains in possession of the leased premises after expiration or termination of the term or after the
date in any notice given by City to Lessee terminating this lease, such possession by Lessee shall be
deemed to be a month-to-month tenancy terminable on thirty (30) days notice given at any time by
either party. During any such month-to-month tenancy, lessee shall pay to City one hundred fifty
percent (150%) of rent required by this lease.
All provisions of this lease, except those pertaining to term, shall apply to tkc month-to-month
tenancy.
29. SECTION HEADINGS: The Table of Contents and section headings contained herein are for
convenience in reference and are not intended to define or limit the scope of any provision thereof.
30. 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 attomey.of any other party, has made
any promise, representations, waiver or warranty whatsoever, expressed or implied, which is not
expressly contained in writing in this lease, and, each party further acknowledges 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.
31. TIME IS OF THE ESSENCE: Time is of the essence of each and all of the terms and
provisions of this lease and this lease shall inure to the benefit of and be binding upon the parties
hereto and any successors of Lessee as fully and to the same extent as though specifically mentioned
in each instance, and all covenants, stipulations and agreements in this lease shall extend to and bind
any assigns and sublessee of Lessee.
32. ATTORNEY’S FEES: In the event any suit is commenced by City against Lessee to enforce
the payment of any rent due or to enforce any of the terms and conditions hereof, or in case City
shall commence summary action under the laws of the State of California relating to the unlawful
detention of property, for the forfeit of this Lease, and the possession of said premises, provided City
effects a recovery, Lessee shall pay City all costs expended in any such action, together with a
reasonable attorney’s fee to be fixed by the Court.
33. NOTICES: Notices given or to be given by City or Lessee to the other may be personally
serviced upon City 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 City 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.
9
To To Lessa
City of Carlsbad Dale Penigo
Public Works Manager c/o The Village Grille
405 Oak Avenue 2833 State- Street
Carlsbad, CA 92008 Carlsbad, CA 92008
Said notices shall also be served by certified letter to the beneficiary of any deed of trust, mortgage,
or other security instrument of record with City and consented to by resolution of City who has
notified City in writing of its desire to receive said notice.
34. REMOVAL OF MATERIALS: Lessee hereby agrees that upon the expiration of this lease or
the sooner termination as herein provided, it will remove within sixty (60) days debris, surplus and
salvage materials from the land area forming a part of or adjacent to the leased premises, so as to
leave the same in as good condition as when first occupied by Lessee; provided, however, that if any
said debris, surplus and salvage materials shall not be so removed within sixty (60) days by the
Lessee, City may remove, sell and destroy the same at the expense of Lessee and Lessee hereby
agrees to pay to City the reasonable cost of such removal, sale or destruction; or at the option of City,
the title to said debris, surplus and salvage materials not removed shall become the property of City
without cost to City and without any payment to Lessee.
During any period of time employed by Lessee under this paragraph to remove debris, surplus and
salvage materials, Lessee shall continue to pay the full rental to City in accordance with this lease
which said rental shall be prorated daily.
35. 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, test, investigations and observations in making this Lease. Lessee further
acknowledges that premises are in the condition called for by this Lease, that City has performed all
work with respect to premises and that Lessee does not hold City responsible for any defects in
premises.
36. 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 City, public, any neighbor or other tenant of City.
37. GENDER/SINGULAR/PLURAL: The neuter gender includes the feminine and masculine,
the masculine includes the feminine and neuter, and the feminine includes the masculine and neuter,
and each includes corporation, partnership, or other legal entity when the context so requires. The
singular number includes the plural whenever the context so requires.
10
38. EQUAL EMPLOYMENT OPPORTUNITY: Lessee shall not discriminate against any
employee or applicant for employment because of race, color, religion, sex or national origin and
shall comply with all Federal, State and local regulations regarding employment.
.39. ABSTRACT OF LEASE: This is the final paragraph and abstract of the lease dated
, 1999, between City of Carlsbad, City, and Dale Perrigo-d.b.a. The Village Grille,
Lessee concerning the premises described in Exhibit “A” attached hereto and by this reference made
a part hereof.
For good and adequate consideration, City leases the premises to Lessee, and Lessee hires them from
City, for the term and on the provisions contained in the lease, including without limitation
provisions prohibiting assignment, subleasing, and encumbering said lease without the express
written consent of City in each instance, all as more specifically set forth in said Lease, which said
Lease is incorporated in this abstract by this reference.
This abstract is not a complete summary of the lease. Provisions in the abstract shall not be used in
interpreting the lease provisions. In the event of conflict between the abstract and other parts of the
lease, the other parts shall control. Execution hereof constitutes execution of the lease itself.
APPROVED as to form
and legality
B
C
LESSEE CITY OF CARLSBAD
-2 hia 6 I J a9 rwlq
Dale Perrigo Date
d.b.a. The Village Grille
Signatures of Lessee and Lessor must be notarized.
11
EXHIBIT A *
VILLAGE GRILL
2829-2833 STATE STREET *
CARLSBAD, CA 92008
StAtE STREET
RESTAURANT
APPROXIUAELY 775 SQ. FT.
NOT PART OF LEASE NOT PART OF LEASE
APPROXIMATELY 678 SQ. FT. APPROXIMATELY 678 SQ. FT.
I
BUM L-
-l
-
l/d = 1’
-
CALIFORNIA ALL-PURPOSE’ CERTIFICATE OF ACKNOWLEDGMENT
State of cAti, /2.h/v dH
county of J-/I-&+ ‘Z cc>
personally appeared Name(s) of Signers(s)
Q Per d nally known to me 422 ..,. oved to me on the basis of satisfactory evidence
to be the person(s) whose name(s) is/msubscribed to the within instrument and acknowledged to
me that he/she&hey executed the same in his/h&heir authorized capacity(ies), and that by his/
he&b& signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s)
acted, executed the instrument.
OPTIONAL
The &ta below is not required by law, however it may prove valuable to persons
relying on the document and could prevent fraudulent reattachment of this form.
SIGNATURE AUTHORITY OF SIGNER: DESCRIPTION OF ATTACHED DOCUMENT
-Cl CITRATE OFFICER(S)
Title(s)
Q PARTNER
DL~MIz-ED
0 GENERAL
rII ATTORNEY-IN-FACT
Cl TRUSI=EE(S)
NAME(S) OF PERSON(S) OR ENTITY(~) !hm IS REPRESENTING:
u=f+i? G-e/(%; w37r.bwe c&f
TITLE OR TYPE OF DOCUMENT
/z-
NUMBER OF PAGES
/ / DATE OF DOCUMENT
SIGNER(S) OTHER THAN NAMED ABOVE:
II