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HomeMy WebLinkAbout2011-11-08; Housing & Redevelopment Commission; 433; AUTHORIZING LEASE AGREEMENT THE VILLAGE GRILLEHOUSING AND REDEVELOPMENT COMMISSION - AGENDA BILL 11 AB# MTG. DEPT. 433 11/8/11 PEM AUTHORIZING A LEASE AGREEMENT BETWEEN THE CARLSBAD REDEVELOPMENT AGENCY AND ROSA HERNANDEZ, D.B.A. THE VILLAGE GRILLE FOR 2833 STATE STREET DEPT. DIRECTOR ~\J(%^ GBICOUNSB. <0&*' EXEC DIR. \^— RECOMMENDED ACTION: Hold a public hearing to accept public comments and ADOPT Resolution No. 516 of the Housing and Redevelopment Commission of the City of Carlsbad, California authorizing a three-year lease agreement between the Carlsbad Redevelopment Agency and Rosa Hernandez, d.b.a. The Village Grill for 2833 State Street for the term August 1, 2011 through July 31, 2014, and authorizing the Executive Director to execute all associated documents. ITEM EXPLANATION: The Carlsbad Redevelopment Agency (Agency) is the owner of real property located at 2833 State Street in Carlsbad, California. The property was purchased by the Agency with the intent of facilitating redevelopment of the site as well as other properties at the corner of Grand Avenue and State Street at a future date. The property was leased to Rosa Hernandez for the Village Grille restaurant at the time of acquisition. The Agency is proposing to continue a short term lease with Ms. Hernandez until such time as future redevelopment activities can be developed in concept and implemented. The property in question is located adjacent to additional property owned by the Carlsbad Redevelopment Agency (public parking lot) and the North County Transit District (commuter rail station). It has been leased continuously to the Village Grille as a restaurant, since 1992. Although the property was purchased for redevelopment purposes, staff has evaluated this request for a continuing lease and does not feel that entering into a short term lease agreement (3 years) with Ms. Hernandez will affect any future planning efforts for the area or redevelopment of the site. The lease agreement would provide an option for Ms. Hernandez to extend the term of the lease agreement for two (2) additional one (1) year periods, with the Agency's consent. Since the Village Grille has been a long term tenant in good standing, the new monthly lease agreement will provide for an increase to the existing lease payment of four percent (4%) with additional annual increases of four percent (4%). This percentage of increase is consistent with the local leasing market, for long-term tenants with a good credit standing. Leasing of the property for an additional three (3) years will provide the Agency with approximately $48,226 in additional revenue. DEPARTMENT CONTACT: Joe Garuba 760-434-2893; joe.garuba@carlsbadca.gov FOR CITY CLERK'S USE ONLY. COMMISSION APPROVED ACTION: DENIED WITHDRAWN AMENDED CONTINUED TO DATE SPECIFIC D CONTINUED TO DATE UNKNOWN D RETURNED TO STAFF D BOARD RECEIVED THE D REPORT/PRESENTATION OTHER-SEE MINUTES D Page 2- Village Grille Lease Staff has exclusively negotiated the attached lease agreement between the Carlsbad Redevelopment Agency and Ms. Hernandez for the Village Grille to allow for the restaurant to continue at the State Street building on a short term basis to 1) prevent a further blighting influence created by the presence of a vacant building in a key revitalization area; 2) test the market for the appropriate use for the property; 3) support economic development activities; and 4) to allow additional time for appropriate planning efforts related to redevelopment of the property at a later date. Per California Health and Safety Code Section 33431 (Redevelopment Law), the Agency may enter into a lease without public bidding but only after a public hearing. The Village Grille restaurant is an appropriate tenant due to its experience and proven track record as a successful restaurant in Carlsbad, and staff recommends continuing to allow the restaurant to operate until such time as appropriate efforts can be implemented to comprehensively redevelop the site at a future date. In addition, per California Health and Safety Code Section 33433, the Agency must provide a report on the lease and its fiscal and other impacts. The required report is attached for review and was made available for public inspection. The lease agreement requires final approval by the Housing and Redevelopment Commission following a public hearing. If approved, the lease shall be retroactive to August 1, 2011 and will have an initial term of three (3) years with a required rental payment of one thousand, two hundred eighty seven dollars and forty three cents ($1,287.43) month. Per California Health and Safety Code Section 33400(b), the Agency is permitted to "rent, maintain, manage, operate, repair and clear real property purchased for the purposes of redevelopment". Therefore, the Agency may enter into the noted lease agreement and allow use of the building for a restaurant while the Agency continues its efforts to prepare for redevelopment of the site. The restaurant use is consistent with the Village Master Plan and Design Manual and with the redevelopment goals and objectives for the area. Staff is recommending approval of the lease agreement as presented and attached to this report. FISCAL IMPACT: The term of the lease is three (3) years with total estimated payments of $48,226.20. The lease payments will be paid as follows: Year 1: $1,287.43 per month or $15,449.16/year Year 2: $1,338.93 per month or $16,067.16/year Year 3: $1,392.49 per month or $16,709.88/year ENVIRONMENTAL IMPACT: Pursuant to Public Resources Code section 21065, this action does not constitute a "project" within the meaning of CEQA in that it has no potential to cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and therefore does not require environmental review. EXHIBITS: 1. Resolution No. 516 of the Housing and Redevelopment Commission of the City of Carlsbad, California authorizing a three-year lease agreement between the Carlsbad Redevelopment Agency and Rosa Hernandez, d.b.a. The Village Grill for 2833 State Street for the term August 1, 2011 through July 31, 2014, and authorizing the Executive Director to execute all associated documents. 2. Section 33433 Redevelopment Report. 3. Lease Agreement between Carlsbad Redevelopment Agency and Rosa Herndandez, d.b.a. The Village Grille. 1 RESOLUTION NO. 516 2 A RESOLUTION OF THE HOUSING AND REDEVELOPMENT COMMISSION OF THE CITY OF 3 CARLSBAD, CALIFORNIA, AUTHORIZING A THREE- 4 YEAR LEASE AGREEMENT BETWEEN THE CARLSBAD REDEVELOPMENT AGENCY AND ROSA HERNANDEZ, 5 D.B.A. THE VILLAGE GRILLE FOR 2833 STATE STREET FOR THE TERM AUGUST 1, 2011 THROUGH JULY 31, 6 2014, AND AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE ALL ASSOCIATED DOCUMENTS. 7 8 WHEREAS, the Carlsbad Redevelopment Agency is the owner of the real 9 property located at 2833 State Street; and, 10 WHEREAS, the subject site was acquired by the Redevelopment Agency with 11 the intent of facilitating redevelopment of the site as well as other properties at the 12 corner of Grand Avenue and State Street at a future date; and, 13 WHEREAS, it is unknown as to when the Agency will be able to initiate 15 comprehensive redevelopment activities related to the subject site due to a poor 16 economy and other extenuating circumstances; and, 17 WHEREAS, there is a need within the community to make continued use of the 18 subject building/property for retail purposes until such time that a redevelopment project 19 may occur at the site to eliminate blight and/or blighting influences within the Village 20 Redevelopment Area; and, 21 WHEREAS, there is a continuing need to test the consumer market for demand 22 and benefit as well as encourage a successful business in an affordable manner within 23 the Village Redevelopment Area, and the subject building has the ability to 25 accommodate said business; and, 26 WHEREAS, the Agency has determined that it is appropriate and necessary to 27 enter into the subject lease and to extend the use of the subject building for retail 28 1 purposes until such time as a redevelopment project may be implemented at said site; 2 and, 3 WHEREAS, California Health and Safety Code Section 33400(b) permits the 4 Agency to rent, maintain, manage, operate, repair, and clear property purchased for the 5 purposes of redevelopment; and, 6 WHEREAS, the Agency has exclusively negotiated with Rosa Hernandez to 7 lease the subject building and operate a restaurant within the building; and,8 9 WHEREAS, the Housing and Redevelopment Commission of the City of 10 Carlsbad, on the date of this resolution, held a duly noticed public hearing to consider 11 the recommendations and heard all persons interested in or opposed to the lease 12 agreement between the Carlsbad Redevelopment Agency and Rosa Hernandez for the 13 USe of the subject property as a restaurant; and, 14 WHEREAS, the Housing and Redevelopment Commission of the City of 15 Carlsbad, on the date of this resolution, considered the report on the lease as required 16 per Section 33433 of the California Health and Safety Code. 17 NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment 1 o Commission of the City of Carlsbad, California, as follows that: 20 1 • The above recitations are true and correct. 21 2. The Commission has reviewed the report required by Section 33433 of the 22 California Health and Safety Code and hereby determines that the building 23 located at 2833 State Street, and owned by the Carlsbad Redevelopment 24 Agency, shall continue to benefit the redevelopment area through its 25 continued use for retail purposes and to grow business within the Village 26 Area through a lease with Rosa Hernandez, d.b.a. The Village Grille for an 27 28 5 1 initial three year period according to the terms set forth in the attached 2 lease agreement, provided as Exhibit 3. 3. That the subject lease will assist in the elimination of blight within the 4 Village Redevelopment Area by providing occupancy of a key building 5 within the Village, which otherwise would remain vacant, and a use that 6 will add desired retail in the area, and is consistent with the Village 0 Redevelopment Plan and Five Year Implementation Plan.o 9 4. That the consideration is appropriate for the condition of the building, the 10 short term nature of the lease, the lack of on-site parking, and other general market conditions for the building space with the covenants and conditions required by the Agency to allow for the use of the building 13 according to the lease. 14 5. The Commission hereby approves said lease agreement and authorizes 15 the Executive Director of the Carlsbad Redevelopment Agency to execute16 17 the approved lease agreement between the Carlsbad Redevelopment 18 Agency and Rosa Hernandez for lease of the Agency-owned property 19 located at 2833 State Street, in substantially the form presented to the 20 Commission and subject to the approval of the City Attorney, who serves 21 as legal Counsel to the Carlsbad Redevelopment Agency. 22 23 // 24 25 26 27 " 28 1 PASSED, APPROVED AND ADOPTED at a Special Meeting of the Housing and 2 Redevelopment Commission of the City of Carlsbad on the 8th day of November 2011, 3 by the following vote, to wit: 4 AYES: 6 NOES: 7 ABSENT: 8 9 10 11 12 „ ATTEST: 13 14 tfeA HILDABRAND, Secretary 16 (SEAL) %<^>,, 17 ,"Vr r o / ESTABLISHED \\ ' 1 o — at :18 ;^\ 1970 19 20 21 22 23 24 25 26 27 28 s~-< c:v- SECTION 33433 REDEVELOPMENT REPORT THE VILLAGE GRILLE LEASE AGREEMENT September 20,2011 Lease Summary The Redevelopment Agency shall continue to lease the building premises at Agency-owned property located at 2833 State Street on a short term basis to Rosa Hernandez, d.b.a. the Village Grille, a restaurant, for rent of fifteen thousand, four hundred forty-nine dollars and sixteen cents ($15,449.16) for the first year, with a 4% increase in each additional year for initially a three (3) year term (with a single two year extension permitted at the discretion of the Agency) for the purposes of continuing a restaurant within the Village Redevelopment Area. The annual rent for said premises shall increase to $16,067.16 in year two of the lease, and $16,709.88 in year three. A Business Development Plan for the Village indicates a need for, and focus on, enhanced retail and restaurant opportunities within the Village Area. Allowing the subject property to continue to be used on an interim basis as a restaurant will allow the Agency to continue to test the market for the most appropriate use for said property for the long term and to provide additional time to develop a vision for future redevelopment of said property. By allowing the existing restaurant to continue operations while a longer term redevelopment plan is developed for the property, the Agency will prevent a blighting influence by ensuring occupancy of the building at a key corner within the Village Area and continuing a successful business from an economic development standpoint. A copy of the proposed lease is attached for public review. Fiscal Impacts The cost of the lease agreement to the Agency and the estimated value of the lease are outlined below for information purposes. Cost to the Agency: The original land acquisition occurred in 1977, when the City of Carlsbad was deeded the land. On July 7, 2009, the Agency acquired the subject parcel and related public parking lot property from the City for $1,260,000 for redevelopment purposes. The subject lease is for the property's leasable space at 2833 State Street, which consists of approximately 775 square feet of usable building and an outdoor patio for dining. The space was occupied by the Village Grille restaurant at the time of purchase by the Agency. The restaurant is currently on a month-to-month lease, while a short term lease was negotiated to allow continuance of the restaurant within the subject space. The property was purchased with Agency funds and a loan from the City (to be repaid by the Agency over time as additional tax increment revenues are available) with the intent of facilitating redevelopment of the site as well as other properties at the corner of Grand Avenue and State Street at a future date. As of this date, there have been no relocation or demolition costs to the Agency. It is estimated that maintenance costs for the exterior of the entire building are approximately $2,000 per year. In anticipation of the new lease, approximately $5,000 in work was performed by City of Carlsbad facilities maintenance staff. These costs were borne by the Section 33433 Redevelopment Report - VG Lease Page 2 City of Carlsbad. However, any future improvements to, or maintenance for, the building or other related operational costs will be borne by the tenant and/or the Redevelopment Agency. Estimated Value of the Interest to be Leased at Highest and Best Use: Based on a recent rental rate survey (February 2011) for the Village Area, the average per square foot market rent for restaurant space in the Village is approximately $2.85. The highest and best use for this space (approximately 775 sf) at this time has been determined to be commercial restaurant, and the appropriate rent would be $2.85 per square foot based on the noted study. This would equate to an annual rental rate of approximately $26,505. However, because the lease is a less desirable short term lease, the economy remains weak, there is no on-site parking and the building is outdated and in only fair condition, the Agency has negotiated a lower per square foot rent of $1.66 with the proposed tenant. This negotiated rent ensures continued operation of a restaurant, which prevents blight from a vacant building and is providing for an economic development and business revitalization opportunity in the Village Area until such time as a new redevelopment opportunity can be pursued on the subject property. The proposed lease rate is fifteen thousand, four hundred forty-nine dollars and sixteen cents ($15,449.16) for the space, or $1.66 per square foot/month as noted above. Estimated Value of the Interest with the Conditions of the Lease; On a short term basis, the tenant intends to continue to lease the subject space for the purposes of ongoing operation of a restaurant. This is consistent with a Business Development Strategy approved for the Village Area a few years ago and currently being implemented by the Agency, and meets the goals and objectives of the Village Master. There will be rent of $15,449.16 in year one, increasing to $16,709.88 in year three of the lease, based on current market and building conditions. The Agency has determined that the recommended lease rate is appropriate and consistent with market conditions, and appropriate for the condition of the building at this time. Impact on Blight Elimination It is the Agency's opinion that the lease of the subject space within the subject property will assist in the elimination of blight within the Village Redevelopment Area by: 1. Eliminating the negative land use impacts of having a vacant, abandoned space/building in close proximity to the commuter rail station and in a critical redevelopment focus area by ensuring the continued existence of an appropriate and existing use within the building. 2. Testing the customer market for the most appropriate land use for the property to assist with implementation plans for ultimate redevelopment of the site at some future date. Section 33433 Redevelopment Report - VG Lease Page 3 3. Assist in the effort to continue to revitalize the retail and dining environment by maintaining an existing popular restaurant during a weak economy and until such time as a redevelopment plan can be developed and implemented for said property. Summary The subject lease provides the Redevelopment Agency with a continuing opportunity to allow an existing popular restaurant to continue operation until such time as the most appropriate use for said property for the long term can be determined, and to provide additional time to develop a vision for future redevelopment/revitalization of said property. By allowing the existing business to continue operation while a longer term redevelopment plan is developed, the Agency will prevent the blight created by a vacant building in a key location of an ongoing revitalization effort and allow for the continuance of a viable business during a weak economy. Continued use of the subject building for the existing restaurant is a good short-term investment in the future of the Village Area as efforts continue to stimulate the economy, and to revitalize and redevelop the Area. The Redevelopment Agency has negotiated an appropriate rent based on the condition of said building, the short term nature of the lease, the lack of private, on-site parking, and other general market conditions. The Agency is not subsidizing the rent for said building. The rent has been set at a reasonable market rate rent based on the conditions set forth above. CARLSBAD REDEVELOPMENT AGENCY LEASE TO ROSA H. HERNANDEZ OF PROPERTY LOCATED AT 2833 STATE STREET CARLSBAD, CA 92008 LEASE AGREEMENT THIS LEASE AGREEMENT, made and entered into this /</* day o by and between the Carlsbad Redevelopment Agency, hereinafter called "AGENCY", and Rosa H. Hernandez "LESSEE", without reference to number or gender, for a portion of the property located at 2833 State Street, Carlsbad, California, 92008. WITNESETH: WHEREAS, the Carlsbad Redevelopment Agency is the owner of the real property located at 2833 State Street, Carlsbad, California, 92008; and WHEREAS, LESSEE desires use of a portion of said property located at 2833 State Street, Carlsbad, California, 92008 ("Leased Premises") totaling approximately 775 square feet (as shown in exhibit A); and WHEREAS, AGENCY and LESSEE desire to enter into a new lease for the premises for a three (3) year term, with two (2) one (1) year options to renew; NOW, THEREFORE, it is understood and agreed by and between the parties hereto as follows, to wit: AGENCY shall lease said Leased Premises to LESSEE for the term of this lease and upon the conditions as follows: 1. TERM: The term of the lease shall be for a period of three (3) years commencing onT\O^AfY\^M)4.lQn , and ending on yjtfYtm L**. H cJOW • Lessee shall be entitled to conduct business prior to commencement date. Upon the expiration of this lease, LESSEE may request and the AGENCY may grant, at its sole discretion and option, to extend the term for two (2) additional one (1) year periods. LESSEE must request such extension in writing at least 1 20 days prior to the lease term expiration. 2. RENT: (a) As and for the rent, LESSEE agrees to pay to AGENCY the sum of one thousand two hundred eighty-seven dollars and forty-three cents ($1,287.43) per month for the first year. On or before J^etem kue r \ 4 , 201 1, the first payment of $1,287.43 per month will be paid and all subsequent payments shall be payable in advance on or before the first day of each and every month during the term of this Agreement. (b) Rent shall be delivered to the Finance Department of the City of Carlsbad at 1635 Faraday Avenue, Carlsbad, California, 92008. The designated place of payment and filing may be changed at any time by AGENCY upon ten (10) days written Approved as to form 11/16/2010 2 131 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 the City of Carlsbad shall have the right to waive for good cause any interest payment upon written application of Lessee for any such delinquency period. (d) LESSEE agrees to pay four percent (4 %) annual increases in monthly lease payments commencing on the anniversary date of this lease, and annually thereafter for the term of the lease period and any extensions granted by AGENCY. Year 2: $1,338.93 Year 3: $1,392.49 Year 4: $1,448.19 Year 5: $1,506.12 (e) LESSEE agrees to pay a Security Deposit in the amount of one month's rent or one thousand two hundred eighty-seven dollars and forty-three cents ($1,287.43) to be paid upon execution of this lease agreement. LESSEE shall submit the Security Deposit in the form of a bank or cashier's check simultaneously, and or in conjunction with the signed lease agreement. AGENCY shall not cash nor deposit Security Deposit until the lease agreement is signed by AGENCY, resulting in the full execution of this agreement. Security Deposit shall be held in an interest bearing account in which upon expiration of this lease, LESSEE shall retain all interest accrued over said lease term. AGENCY shall not be required to keep the Security Deposit separate from its general accounts. If LESSEE fails to pay Rent, or otherwise defaults under this lease, AGENCY may use, apply or retain all or any portion of said Security Deposit for the payment of any amount due AGENCY or to reimburse or compensate AGENCY for any liability, expense, loss or damage which AGENCY may suffer or incur by reason thereof. If AGENCY uses or applies all or any portion of said Security Deposit, LESSEE shall within ten (10) days after written request therefore deposit monies with AGENCY sufficient to restore said Security Deposit to the full amount required by this Lease. If the Base Rent increases during the term of this Lease, LESSEE shall, upon written request from AGENCY, deposit additional moneys with AGENCY so that the total amount of the Security Deposit shall at all time bear the same proportion to the increased Base Rent as initial Security Deposit bore to the initial "Base Rent" 3. USE: Approved as to form 11/16/2010 3 13 (a) LESSEE agrees that the 775 square feet of Leased Premises designated as restaurant shall be used only and exclusively for the operation of a restaurant and for no other purposes whatsoever without the written consent of AGENCY. (b) LESSEE shall be prohibited from the sale or consumption of alcohol on the leases premises. 4. EARLY TERMINATION: LESSEE or AGENCY shall have a right to terminate the lease by first giving one-hundred eighty (180) days written notice to the other party. 5. IMPROVEMENTS: LESSEE may, at its own expense, make additional interior alterations or changes in the Leased Premises or cause to be built, made or installed thereon any structures, machines, appliances, utilities, signs or other improvements necessary or desirable for the use of said premises and may alter and repair any such structures, machines or other improvements; provided, however, that no alterations and changes shall be made and no structures, machines, appliances, utilities, signs or other improvements shall be made, built or installed, and no major repairs thereto shall be made except upon obtaining prior written approvals from AGENCY and all necessary permits from the City of Carlsbad. Such installation will be solely at the expense of LESSEE and the work performed with proper City of Carlsbad permits. LESSEE will be permitted to paint the exterior of the premises in accordance with standards acceptable to AGENCY and with prior written approval of AGENCY. LESSEE shall be responsible for manufacturing and installation of signage in accordance with the signage regulations set forth by the City of Carlsbad. 6. OWNERSHIP; REMOVAL; SURRENDER/RESTORATION: (a) Ownership. Subject to AGENCY'S right to require removal or elect ownership as hereafter provided, all alterations and utility installations made by LESSEE shall be the property of the AGENCY. Unless otherwise instructed per Paragraph 6(b) hereof, all LESSEE owned alterations and utility installations shall, at the expiration or termination of this Lease, become the property of AGENCY and be surrendered by LESSEE with the premises. (b) Removal. By delivery to LESSEE of written notice from AGENCY not later than sixty (60) days prior to the end of the term of this Lease, AGENCY may require that any or all LESSEE owned alterations or utility installations be removed upon the expiration or termination of this Lease. AGENCY may require the removal at any time of all or any part of any LESSEE owned alterations or utility installations made without AGENCY'S consent. (c) Surrender/Restoration. LESSEE shall surrender the premises by the expiration date or any earlier termination date, with all of the improvements, parts and surfaces thereof broom clean and free of debris, and in good operating order, condition and state of repair, ordinary wear and tear excepted. "Ordinary wear and tear" shall not Approved as to form 11/16/2010 include any damage or deterioration that would have been prevented by good maintenance practice. LESSEE shall repair any damage occasioned by the installation, maintenance or removal of trade fixtures, LESSEE owned alterations and/or utility installations, furnishings, and equipment installed by or for LESSEE and by the removal, replacement, or remediation or any soil, material or groundwater contaminated with hazardous substance (as defined in Paragraph 23) by LESSEE. Trade fixtures shall remain the property of LESSEE and shall be removed by LESSEE. The failure by LESSEE to timely vacate the premises pursuant to this Paragraph 6 (c) without the express written consent of AGENCY shall constitute a holdover under the provisions of Paragraph 32 below. 7. PARKFNG: LESSEE will not be allocated designated parking spaces for LESSEE'S sole use. 8. RIGHT TO ENTER PROPERTY: Upon execution of this lease agreement, LESSEE shall be granted access to the premises to initiate, construct and complete the Tenant/building improvements as outlined in the Improvements Paragraph 5 of this lease. All tenant improvements shall be complete prior to occupancy of the building. 9. REPRESENTATIONS & INDEMNITIES OF BROKER RELATIONSHIPS: LESSEE and AGENCY each represent and warrant to the other that it has had no dealings with any person, firm, broker or finder in connection with this Lease, and that no person, firm, broker or finder is entitled to any commission or finder's fee in connection herewith. LESSEE and AGENCY do each hereby agree to indemnify, protect, defend and hold the other harmless from and against liability for compensation or charges which may be claimed by any such unnamed broker, finder or other similar party by reason of any dealings or actions of the LESSEE and/or AGENCY, including any costs, expenses, or attorney's fees reasonably incurred with respect thereto. Any and all broker's commissions shall be paid by LESSEE. 10. WAIVER OF RELOCATION BENEFITS: LESSEE understands this lease agreement is entered into for a specified period of time. LESSEE therefore agrees to waive any and all relocation benefits defined in the California Relocation Assistance Law (Government Code, Section 7260, et. seq.). 11. LIENS: LESSEE agrees that it will at all times hold AGENCY free and harmless and indemnify it against all claims for labor or materials in connection with improvements, repairs, or alterations on the Leased Premises, including the costs of defending against such claims, and reasonable attorney's fees incurred therein. 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 AGENCY, deposit with AGENCY a bond conditioned for the payment in full of all claims upon which said lien or levy has been filed. Such bond shall be acknowledged by LESSEE as principal and by a corporation, licensed by the Insurance Commissioner of the State of California to transact the business of a fidelity and surety insurance company, as surety. AGENCY shall have the right to declare this lease in default in the event the Approved as to form 11/16/2010 5 15 bond required by this paragraph has not been deposited with the AGENCY within ten (10) days after written request has been delivered to LESSEE. 12. LEASE ENCUMBRANCE: LESSEE understands and agrees that it cannot encumber the lease, leasehold estate and the improvements thereon by a deed of trust, mortgage or other security instrument. If any deed of trust, mortgage or other security instrument that encumbers the lease, leasehold estate and the improvements thereon is entered into by LESSEE, AGENCY shall have the right to declare this lease in default. 13. ASSIGNMENT-SUBLEASE: LESSEE shall not assign or transfer the whole or any part of this lease or any interest therein, nor sublease the whole or any part of the Leased Premises, nor contract for the management or operation of the whole or any part of the Leased Premises, nor permit the occupancy of any part thereof by any other person or business entity, nor permit transfer of the lease by merger, consolidation or dissolution, without obtaining prior written consent of AGENCY, in each instance. 14. 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 fulfill in any manner the uses and purposes for which said premises are leased as above stated, and such default shall not be cured within or ten (10) days after written notice thereof if default is in the performance of the use obligation provisions pursuant to Paragraph 16 of this lease, or thirty (30) days after written notice thereof if default is in the payment of rent, or in the performance of any other covenant, condition and agreements (any covenant or agreement shall be construed and considered as a condition), AGENCY shall have the right to immediately terminate this lease; and that in the event of such termination, LESSEE shall have no further rights hereunder, the LESSEE shall thereupon forthwith remove all personal property from said premises and shall have no further right to claim thereto, and AGENCY shall immediately thereupon, without recourse to the courts, have the right to reenter and take possession of the Leased Premises. AGENCY 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 AGENCY 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 there from. In the event of the termination of this lease pursuant to the provisions of this paragraph, AGENCY shall have any rights to which it would be entitled in the event of the expiration or earlier termination of this lease. 15. BANKRUPTCY: In the event LESSEE becomes insolvent, makes an assignment for the benefit of creditors, files a petition in bankruptcy or becomes the subject of 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, AGENCY shall have the right to declare this lease in default. Approved as to form 11/16/2010 5 \(P 16. 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 do so use caused by 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. 17. MAINTENANCE AND REPAIR: As part of the consideration for the leasing thereof, LESSEE agrees to assume full responsibility for maintenance, repair and replacement of the interior of the building including but not limited to painting, plumbing, fixtures, windows and glass, HVAC systems, custodial, flooring, and appliances, throughout the term and without expense to the AGENCY in order to maintain and preserve the premises in a good, safe, healthy and sanitary condition satisfactory to AGENCY and in compliance with all applicable laws. . LESSEE agrees to keep premises free and clear of rubbish and litter, or any other fire hazards. AGENCY shall be responsible for all exterior maintenance, including roof repairs and exterior paint. Notwithstanding, AGENCY 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. For the purpose of keeping the premises in a good, safe, healthy and sanitary condition, AGENCY shall have the right but not the duty, to enter, view, inspect, determine the condition of and protect its interests in, the premises. If inspection discloses that the premises are not in the condition described, LESSEE must perform the necessary maintenance work within ten (10) days after written notice from AGENCY. Further, if at any time during the term of the lease for the premises AGENCY determines that the premises are not in the condition described; AGENCY may require LESSEE to file and pay for a faithful performance bond, to assure prompt correction without additional notice. The amount of this bond shall be adequate, in AGENCY'S opinion, to correct the unsatisfactory condition. The rights reserved in this section shall not create any obligations or increase any obligations for AGENCY elsewhere in this Lease. 18. TAXES AND UTILITIES: This Lease may result in a taxable possessory interest. LESSEE shall be solely responsible for payment of property taxes associated with its occupancy of the Leased Premises, if any apply. LESSEE agrees to and shall pay before delinquency all its pro-rata share of the possessory taxes and assessments of any kind assessed or levied upon LESSEE or the Leased Premises by reason of this lease or of any structures, machines, or other improvements of any nature whatsoever erected, installed or maintained by LESSEE, or by reason of the business or other activities of LESSEE upon or in connection with the Leased Premises. LESSEE shall also pay any fees imposed by law for licenses or permits for any business or activities of LESSEE upon the Leased Premises or under this lease, and shall pay before delinquency any and all charges for utilities at or on the Leased Premises. If LESSEE fails to pay said possessory taxes, AGENCY may declare default in accordance with Paragraph 14. LESSEE shall be responsible for payment of all utilities, including its pro-rata share of water, gas and electricity. All utilities will be metered at the building site and billed to LESSEE separately. Approved as to form 11/16/2010 II 19. CONFORMANCE WITH RULES AND REGULATIONS: LESSEE agrees that in all activities on or in connection with the Leased Premises and in all uses thereof, including the making of any alterations or changes and the installation of any machines or other improvements, it will abide by and conform to all ordinances, rules and regulations prescribed by the City of Carlsbad, including, but not limited to, sign regulations and requirements for outdoor areas as set forth within the Carlsbad Municipal 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. 20. 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. 21. 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. 22. HOLD HARMLESS: LESSEE shall defend, indemnify, and hold harmless AGENCY, its officers and employees from liability, damage, and expense of any kind, including reasonable attorney's fees, arising from all claims or causes of action of any kind including but not limited to injury to or death of any person or persons, including LESSEE, its employees, and invitees resulting directly or indirectly from granting and performance of this lease or arising from the use and operation of the Leased Premises or any defect in any part thereof. 23. HAZARDOUS SUBSTANCES: The term "Hazardous Substance" as used in this Lease shall mean any product, substance, or waste whose presence, use, manufacture, disposal, transportation, or release, either by itself or in combination with other materials expected to be on the premises, is either: (i) potentially injurious to the public health, safety or welfare, the environment or the premises, (ii) regulated or monitored by any government authority, or (iii) a basis for potential liability of AGENCY to any governmental agency or third party under any applicable statute or common law theory. LESSEE shall not cause or permit any Hazardous Substance to be spilled or released in, on, under, or about the premises (including through the plumbing or sanitary sewer system) and shall promptly, at LESSEE'S expense, take all investigatory and/or remedial action reasonably recommended, whether or not formally ordered or required, for the cleanup of any contamination of, and for the maintenance, security and/or monitoring of the premises or neighboring properties, that was caused or materially contributed to by LESSEE, or pertaining to or involving any Hazardous Substance brought onto the premises during the term of this Lease, by or for LESSEE, or any third party. Approved as to form 11/16/2010 24. 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. 25. EASEMENTS: LESSEE shall defend, indemnify, and hold harmless AGENCY, its officers and employees from liability, damage, and expense of any kind, including reasonable attorney's fees, arising from all claims or causes of action of any kind including but not limited to injury to or death of any person or persons, including LESSEE, its employees, and invitees resulting directly or indirectly from granting and performance of this lease or arising from the use and operation of the Leased Premises or any defect in any part thereof. 26. INSURANCE: LESSEE shall obtain and maintain for the duration of this lease agreement and any and all amendments, insurance against claims for injuries to persons or damage to property which may arise out of or in connection with use of the subject building and provision of services by Lessee. The insurance will be obtained from an insurance carrier admitted and authorized to do business in the State of California. The insurance carrier is required to have a current Best's Key Rating of not less than "A-VII". The policies for said insurance shall, as a minimum, provide the following forms of coverage: (a) Commercial 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. (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 $1,000.00 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. AGENCY will be responsible for providing coverage for the structure itself, exclusive of the items required to be covered by LESSEE'S insurance policy. (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 Approved as to form 11/16/2010 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 AGENCY evidencing the existence of the necessary insurance policies shall be kept on file with AGENCY during the entire term of this lease. All insurance policies shall be primary coverage, and will name AGENCY as an additional insured, protect AGENCY against any legal costs in defending claims and will not terminate without ten (10) days written notice to AGENCY. (e) AGENCY 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 AGENCY, the insurance provisions in this lease do not provide adequate protection for AGENCY and/or for members of the public using the Leased Premises, AGENCY may require LESSEE to obtain insurance sufficient in coverage, form and amount to provide adequate protection. AGENCY'S requirements shall be reasonable but shall be designed to assure protection from and against the kind and extent of risk, which exist at the time a change in insurance is required. (f) AGENCY shall notify LESSEE in writing of changes in the insurance requirements and, if LESSEE does not deposit certificates/endorsements evidencing acceptable insurance policies with AGENCY incorporating such changes within thirty (30) days of receipt of such notice, this lease shall be in default without further notice to LESSEE, and AGENCY 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 AGENCY 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, Approved as to form 11/16/2010 \ Q BO 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. 27. WARRANTIES-GUARANTEES-COVENANTS: AGENCY 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 AGENCY will not be responsible for any loss, damage or costs which may be incurred by LESSEE by reason of any such condition or conditions. 28. 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 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 AGENCY, LESSOR must also comply with all applicable regulations from Local, State, and Federal Governments; 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 26 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. 29. 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 AGENCY within thirty (30) days after receipt of written demand thereof a good and sufficient deed whereby all right, title and interest of LESSEE in the demised premises is quitclaimed to AGENCY. Should LESSEE fail or refuse to deliver the required deed to AGENCY, AGENCY 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. 30. PEACEABLE SURRENDER: Upon the expiration of this lease or sooner termination or cancellation thereof, as herein provided, LESSEE will peaceably surrender said premises to AGENCY in as good condition as said premises were at the date of this lease, ordinary wear and tear expected. 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 AGENCY from all liability and expense resulting from the Approved as to form 11/16/2010 \ \ delay or failure to surrender, including, without limitation, any succeeding LESSEE'S claims based on LESSEE'S failure to surrender. 31. WAIVER: Any waiver by AGENCY of any breach by LESSEE of any one or more of the covenants, conditions, or agreements of this lease shall not be nor be construed to be a waiver of any subsequent or other breach of the same or any other covenant, condition or agreement of this lease, nor shall any failure on the part of AGENCY 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 AGENCY from enforcing the full provisions hereof. The subsequent acceptance of rent hereunder by AGENCY 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 AGENCY'S knowledge of such preceding breach at the time of acceptance of such rent. 32. NO RIGHT TO HOLD OVER: LESSEE has no right to retain possession of the premises or any part thereof beyond the expiration or termination of this lease. In the event that LESSEE holds over, then the Base Rent shall be increased to one hundred fifty (150%) of the Base Rent applicable during the month immediately preceding the expiration or termination. Nothing contained herein shall be construed as consent by Lessor to any holding over by LESSEE. 33. ACCEPTANCE OF PREMISES: AGENCY shall warrant the following upon occupancy: (a) Structural integrity of the building; (b) Roof of premises is free of any leaks; (c) Electrical is in good working order; and (d) Plumbing is in good working order. LESSEE shall be entitled to have independent tests performed prior to execution of this lease to satisfy LESSEE that the premises are in the condition warranted. 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 further acknowledges that premises are in the condition called for by this Lease, and that LESSEE does not hold AGENCY responsible for any defects in premises. 34. 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 AGENCY, public, any neighbor or other tenant of AGENCY. 35. ENTIRE UNDERSTANDING: This lease contains the entire and only understanding and agreement of the parties, and LESSEE, by accepting the same, acknowledges that Approved as to form 11/16/2010 there is no other written or oral understanding or agreement between the parties with respect to the demised premises and that this lease supersedes all prior negotiations, discussions, obligations and rights, of the parties hereto. No waiver, modification, amendment or alteration of this lease shall be valid unless it is expressly in writing and signed by authorized persons of the parties hereto. Each of the parties to this lease acknowledges that no other party, nor any agent or attorney of any other party, has made any promise, representations, waiver or warranty whatsoever, 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. 36. 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 insure 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. 37. NOTICES: Notices given or to be given by AGENCY or LESSEE to the other may be personally serviced upon AGENCY 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 AGENCY 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. FOR LESSEE FOR AGENCY Rosa Hernandez 3603 Terrace Place Carlsbad, CA 92010 LESSEE: BY: ROSA HERNANDEZ PRESIDENT/CEO DATE: APPROVED AS TO FORM: BY: DATE: Municipal Property Manager City of Carlsbad 405 Oak Avenue Carlsbad, CA 92008 AGWCY: JSA HILDABRAND EXECUTIVE DIRECTOR CARLSBAD REDEVELOPMENT AGENCY DATE: \\-\Mf-1DU Approved as to form 11/16/2010 13 RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: Carlsbad City Clerks Office 1200 Carlsbad Village Drive Carlsbad. CA 92008 MEMORANDUM OF LEASE This Memorandum of Lease , hereinafter "Memorandum", dated 2011, between the CARLSBAD REDEVELOPMENT AGENCY, AGENCY, and Rosa H. Hernandez, LESSEE, concerning the Leased Premises at 2833 State Street, Carlsbad, CA 92008. For good and adequate consideration, AGENCY leases the Leased Premises to LESSEE, for the term and on the provisions contained in the Lease dated *y) svtn-, ku. r /</, 2011, the Memorandum of which is recorded by the San Diego County Recorder's Office, including without limitation provisions prohibiting assignment, subleasing, and encumbering said leasehold, as more specifically set forth in said Lease, which said lease is incorporated in this Abstract by this reference. The term of this lease is three (3) years beginning August 1 . 2011 and ending July 31, 2014 with 2 additional one (1) year periods granted at the sole discretion and option of the AGENCY. Rent is due and payable within seven (7) days of execution of Lease and is to be delivered to the Finance Department of the City of Carlsbad at 1635 Faraday Avenue, Carlsbad, California, 92008. The monthly rent schedule is as follows allowing for a four (4) percent increase per year commencing on the anniversary date of the Lease: Year 1: $1,287.43, Year 2: $1,338.93, Year 3: $1,392.49, Year 4: $1,448.19, and Year 5: $1,506.12. This Memorandum is not a complete summary of the Lease. Provisions in this Memorandum shall not be used in interpreting the Lease provisions. In the event of conflict between this Memorandum and other parts of the Lease, the other parts shall control. Execution hereof constitutes execution of the Lease itself. IN WITNESS WHEREOF, each of the undersigned has executed this Memorandum as of the dates set forth in the respective notary acknowledgements attached hereto. Executed at:Executed at: 7/on: By LES; By: . Name Printed: Rosa Hernandez Title: Owner. The Village Grille Address: 2833 Terrace Place Carlsbad. C A 920 10 Telephone: ( 760 ) 729-2274 Facsimile: ( ) Name Printed: Lisa Hildabrand Title: Executive Director. Carlsbad Redevelopment Agency Address: 1200 Carlsbad Village Drive Carlsbad. CA 92008 Telephone: (760)434-2821 Facsimile: (760)720-9461 Federal ID No. APPROVED: BY: ^ DATE: ROM.LD R. BALC CITY ATTORNEY ' -<<- t^ EY /I Approved as to form 1 1 / 1 6/20 10 14 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE § 1189 I State of California County of On } Date personally appeared before me, Here Insert Name and Title of t.. -hi i* ( 1 Name(s) of Signer(s) 1 SUSAN S SAINZ Commission # 1922709 Notary Public - California 1 San Diego County 5 ffi uT™ £XM Jan 22'^5 F who proved to me on the basis of satisfactory evidence to be the person(s) whose name(sXj5^n:»- subscribed to the within instrument and acknowledged to me that he/^Fieythey- executed the same in 'tketf--authorized capacity(ies), and that by signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) 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 -"-«_j i 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: Document Date: [U "~ fcr~~~ ' V Number of Pages:/ / Signer(s) Other Than Named Above: I Capacity(ies) Claimed by Signer(s) Signer's Name: ^Officer — Title(s):. Individual !".] Partner — G Limited D GeneT [ ! Attorney in Fact G Trustee D Guardian or Conservator D Other: RIGHT THUMBPRINT OF SIGNER of thumb here Signer's Name: D Corporate Officer — Title(s): D Individual Signer Is Representing:. D Partner — n Limited } Attorney in Fact General RIGHT THUMBPRINT OF SIGNER © 2010 National Notary Association • NationalNotary.org • 1-800-US NOTARY (1-800-876-6827)Item #5907 CALIFORNIA ALL-PURPOSE CERTIFICATE OF ACKNOWLEDGMENT State of California county of On 14,2.011 before me, (Huts insert name and title ofjjie officer) personally appeared who proved to me on the basis of satisfactory evidence to be the person^) whose name^^hi^ subscribed to the within instrument and acknowledged to me that'&egjjj^tbgj' executed the same in ttts/fieBrthefF. authorized capacity(rcs}, and that by hts^fi^thetf signature^ on the instrument the person^), or the entity upon behalf of which the person^ 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. V Signature of Notary Public (Notary Seal) MORGEN FRY Commission # 1918442 Notary Public - California San DJSQO County MyCoinnvExotomO«c2O014 ADDITIONAL OPTIONAL INFORMATION DESCRIPTION OF THE ATTACHED DOCUMENT (Title or description of attached document) (Title or description of attached document continued) Number of Pages Document Date (Additional information) CAPACITY CLAIMED BY THE SIGNER D Individual (s) D Corporate Officer (Title) D Partner(s) D Attorne/itf-Fact D D/dther INSTRUCTIONS FOR COMPLETING Tj#S~ FORM Any acknowledgment completed in California must contain verbiage exactly as appears above in the notary section or a separate acknowledgment form must be properly completed and attached to that docwrtent. The only exception is if a document is to be recorded outside of California. In such instances, any alternative acknowledgment verbiage as may be pcimed on such a document so long as the verbiage does not require the notaryw do something that is illegal for a notary in California (i.e. certifying the auinorized capacity of the signer). Please check the document carefully for prope^notarial wording and attach this form if required. • State and Countyififormation must be the State and County where the document signer(s) pefsrfnally appeared before the notary public for acknowledgment. • Date opiotarization must be the date that the signer(s) personally appeared which rrmsfalso be the same date the acknowledgment is completed fhe notary public must print his or her name as it appears within his or her commission followed by a comma and then your title (notary public) Print the name(s) of document signer(s) who personally appear at the time of notanzation. Indicate the correct singular or plural forms by crossing off incorrect forms (i.e. he/she/thoy, is /afe ) or circling the correct forms. Failure to correctly indicate this information may lead to rejection of document recording. The notary seal impression must be clear and photographically reproducible. Impression must not cover text or lines. If seal impression smudges, re-seal if a sufficient area permits, otherwise complete a different acknowledgment form. Signature of the notary public must match the signature on file with the office of the county clerk. <• Additional information is not required but could help to ensure this acknowledgment is not misused or attached to a different document •5* Indicate title or type of attached document, number of pages and date •> Indicate the capacity claimed by the signer. If the claimed capacity is a corporate officer, indicate the title (i.e. CEO, CFO, Secretary) Securely attach this document to the signed document 2008 Version CAPA v!2.10.07 800-873-9865 www.NotaryClasses.com Village Grille LeaseJoe Garuba, Municipal Property ManagerNovember 8, 2011