HomeMy WebLinkAboutJensen, John E. 1986-05-291
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LEASE AGREEMENT
LAND LEASE AGREEMENT, AIRPORT PROPERTY
CITY OF UKIAH AND JOHN E. JENSEN
This Agreement, made by and between the City of Ukiah, a Municipal
Corporation, hereinafter called "Lessor" and John E. Jensen, hereinafter,
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called "Lessee",
W I T N E S S E T H:
Lessor does hereby lease to Lessee for the term of one (1) year from and
after the first day of March, 1986, that certain plot of real property)
situated at the Ukiah Municipal Airport in the City of Ukiah, County of
Mendocino, State of California, all as more particularly described and set out
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in Exhibit "A" attached hereto and incorporated herein, pursuant- to the L
follo,:ling terms and conditions:
1. Purpose. The purpose for which the leased land is to be used by
Lessee is to occupy an existing office and sales building, measuring approxi-
mately thirty (30) feet by forty (40) feet and any other_ accessory structures
thereon, to be used as a retail nursery outlet and other allied activities
embraced within the scope of a retail nursery outlet. The remaining land area
is to be utilized as growing and development area for said retail nursery
outlet.
2. Rent. Rents reserved hereunder are to be payable monthly in
advance, beginning March 1, 1986 and will be delinquent if not paid by the
10th day of each and every month. The rental rate for the term of the lease-
hold shall be $160.00 per month and shall increase to:
$170.00 per month on March 1, 1987
$180.00 per month on March 1, 1988
$190.00 per month on March 1, 1989
$200.00 per month on March 1, 1990
3. Payment Based On Gross Receipts. Lessee shall make further payment
to Lessor based upon the Gross Receipts generated from the nursery outlet on a
quarterly basis, as set forth in the following schedule:
Ukiah Airport Commission
1415 South State Street
Ukiah, CA 95482 -
11 September 1991
Ukiah City Council
300 Seminary Avenue
Ukiah, CA 95482
Reference: Lease agreement between City of Ukiah and
John Jensen of Oak Valley Nursery
Dear Mayor Henderson and Members of the Council:
At the regular meeting of the Airport Commission on 10 `?nzeT~t;,~n
1991, we discussed the lease referenced above. Since th'.is mntiJayr•
will come before the City Council prior to the preparatic;n o+f oui?•
minutes, we decided to write to the Council.
-We have reviewed the contract prepared by counsel and gave_Ui1P:
matter careful consideration before making recommendati_cri,_ A,,.
written, the lease specifies a base rental of $980 per monti.p0i;,:
annual escalator determined by the San Francisco Bay Area
Price Index. We believe that this initial rent is too hi[i,
the rent could easily increase to nearly $1200 per month diriln(j.;
life of the contract. The nursery is a good neighbor and i~_n.:zn~i.3ra
the airport, and there is no other contemplated use of J111az latt.rl.
should the tenant leave.
We propose that the rental be set initially at $750 jpBr incrrdl;11
retroactive to 1 April 1991, and that there be annual para-ar,,ij.irge
increases equal to the percentage increase of the San Frarcis•4n,B'aty
Area Consumer Price Index, and such increase be 1 invited t,.', m~tmwe
than 6% if the CPI increase is greater than 6%. In ch-e17-
respects, the contract is fine. The vote for this proposal :Vaf f-i
members in favor and one abstention.
We understand that the income of. the airport will be a, muati:d,
$2700 per year less under this proposal, but we also reaiN TjhLTt
this will be in keeping with other rents on the airport prot!anty:Wcd-
will represent a fair rental to a good tenant.
Thank you for your kind attention in the Council's diso.issJon: o),J
this matter.
Very truly yours,
Rudolph H. Light, Ph.D., Chairman
for the Ukiah Airport Commission
Copy: Don Bua, Airport Manager
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One percent (1%)`of gross receipts of $1.00.to $10,000.00
Two percent (2%) of gross receipts of $10,001.00 to $20,000.00
Three percent (3%) of gross receipts of $20,001.00 and above.-
4. Options. Lessee is hereby granted four (4) one (1) year options
which may be exercised so as to extend the term of this lease to not exceed a
five (5) year period. Lessee, to exercise such option, must give Lessor
thirty (30) days notice of said exercise. Lessee shall have the right of
first refusal of any new lease which Lessor wishes to enter into with regard
to the aforedescribed parcel and improvement after the maximum term expires.
5. Reversion. Upon the expiration of the term of this lease and any
exercise of options herein granted, all improvements placed upon the leased
premises by Lessee shall revert to and become the property of Lessor. Said
improvements shall consist of, but not be limited to, one thirty (30) foot by
forty (40) foot office and sales building, accessory structures or buildings
build on the leased premises and paved parking area. Should Lessee at any
time cancel this lease or cease to operate the hereinabove described business
all improvements shall revert to Lessor's ownership immediately. Lessee shall
remain liable for the monthly rental payment for the balance of the current
one (1) year period.
6. Development. Lessor reserves the right to further develop or
improve the premises of the Ukiah Municipal Airport as it shall deem fit,
regardless of the desire or views of Lessee and without interference or
hindrance from Lessee. Shall it be determined by Lessor that the premises
herein leased is required for an aviation oriented purpose, Lessor shall give.
Lessee six (6) months notice to vacate and Lessor shall enter into
negotiations for the purchase of improvements constructed by Lessee.
7. Maintenance. Lessee agrees to maintain all of said property leased
hereunder and such improvements as are placed thereon in good condition and
repair.
8. Utilities. Lessee shall provide at its own expense all utilities
which shall include but not be limited to electricity, water, sewer and other
utilities as necessary.
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1 9. Parcel Access. Access to Lessor's parcel shall be from the current
2 airport access road which forms the approximate south boundary of said parcel.
3 Said roadway shall be maintained as an all-weather roadway.
4 10. Change of Ownership. This lease and the improvements placed thereon
5 shall not be sold, assigned, transferred, sublet nor underlet by the Lessee
6 except upon submitting written notification thereof to the Lessor thirty (30)
7 days prior to any change in ownership. At the time of said change of owner--
8 ship, the rental rate for said leasehold shall be subject to renegotiation
9 between the new owner and the City of Ukiah. This paragraph shall not apply
10 to transfer to a corporation in which Lessees have a controlling interest or
11 to a partnership in which Lessees or either of them have at least fifty-one
12 percent (51%) interest. The addition of immediate family members as Lessees
13 or as operators of the business shall not be deemed a "change of ownership".
14 11. S ins. Lessee shall have the right to install on the leased
15 premises such sign or signs as are approved by the. City Manager of the City of
16 Ukiah prior to installation of said sign.
17 12. Performance. Lessee agrees that if it should fail to keep, comply
1$ with or perform any of the agreements, covenants or conditions of this lease,
19 Lessor shall have the right, upon thirty (30) days notice, to terminate this
20 lease and to enter upon said premises and remove therefrom all persons and
' 21 property and repossess itself thereof as of its first and former estate.
22 13. Possession. Upon conforming to and abiding by all of thel
23 agreements, covenants and conditions of this lease, Lessee shall have the
24 right to the enjoyment and peaceful possession of the premises hereby leased
25 and free access thereto for itself and its customers and business invitees to
26 the Ukiah Municipal Airport and the premises upon which the same is situated;
27 provided, however, that such access may not interfere with or jeopardize the
28 use of said airport for the landing or launching or parking of aircraft.
29 14. Setback Limits and Height Restrictions. All improvements installed
30 on the leased premises shall be required to conform to any setback or height
31 limit established by any law, ordinance of FAA regulation now existing or
32 which may be hereafter adopted.
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1 15. Federal Agency Regulations. This agreement shall be subordinate to
2 the provisions of any existing or future agreement between the City and the
3 United Stated of America, or any agency or administrative arm thereof and to
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4 any rules, regulations or policies adopted by the United States of America,- or
5 any agency or administrative arm thereof, relating to the operation or mainte
6 nance of the Ukiah Municipal Airport. Should this lease be required to be
7 terminated for any of the foregoing reasons, it is agreed that Lessee shall)
$ terminate and remove therefrom all of his property and vacate such leased
9 premises within thirty (30) days after receipt of a written termination notice
10 from Lessor.
11 In that connection it is specifically agreed that Lessee in the use and
12 operation of this lease will not on the grounds of race, color or national
13 origin discriminate or permit discrimination against any person or group of
14 persons in any manner prohibited by any rules, regulations or policies adopted
15 by the United States of America, or any agency or administrative arm thereof.
16 Lessee hereby grants to Lessor the right to take such action as the government
17 of the United States of America may direct to enforce such covenant.
18 16. Insurance. Lessee shall provide at his own expense insurance
19 covering bodily injury to all persons in a minimum amount of One Hundred
20 Thousand ($100,000) Dollars for each person and Three Hundred Thousand
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21 ($300,000) Dollars for each accident, and property damage in the minimum
22 amount of Fifty Thousand ($50,000) Dollars each accident for any occurrence
23 in, on, or related to said property. Lessee shall name Lessor as an addi-
24 tional insured and shall furnish to Lessor a Certificate of Insurance showing.
25 that said insurance required hereunder has been obtained. Such insurance
26 shall be kept in force throughout the entire term of this lease or any exten-
27 sion thereof. Further pursuant to the same conditions stated as applied to
28 bodily injury and property damage insurance, the Lessee shall secure fire
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29 insurance upon the improvements placed on the leasehold in an amount suffi-
30 cient to indemnify the Lessee, and the Lessor as additional insured, in the
31 event of total destruction of the improvements.
32
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17. Release and Indemnification. This lease is made upon the expressed]
condition that Lessor shall not be liable for any damages or claims for
damages or attorney's fees by reason of any bodily injury or death to any
person or persons, or for the damage of or destruction of any property while
in, on or in any way connected with said property or premises, or the side-
walks and areas immediately adjacent to the within described property, during
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the occupancy of said premises or property by said Lessee; and Lessee agrees)
to save and hold harmless Lessor from any and all claims, loss, expense,))
damages, charges,. liens, liabilities, attorney's fees, or causes of action orl
on of whatsoever nature on account of any and all damage to, or loss or
destruction of any property arising out of the injury to, or the death of any
person or persons or damage to or destruction of property while in, or on, or,
in any way connected with property or premises or the sidewalks and areas
immediately adjacent thereto during the occupancy of said lease. It as
expressly agreed that the terms of this provision shall include negligence of
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all parties including that of the indemnitee.
18. Hindu agreement. This agreement, unless otheriaise noted, shall be
binding upon and shall inure to the benefit of the successors, assigns, heirs,
partners or legal repres--ntatives of each party.
19. Taxes. Lessee agrees to pay any possessory interest or other tax
which may be levied upon Lessee's interest or upon that portion of Lessor's
property occupied by Lessee.
20. Notices. Any written notice required hereby shall be deemed
sufficient when placed in the United States Mail, postage prepaid and
addressed as follows:
"TO LESSEE"
John E. Jensen
1450 South State Street
Ukiah, California 95482
"TO LESSOR"
City Manager
203 South School Street
Ukiah,,California 95482
21. Waiver. Failure of Lessor or Lessee to enforce any term of this
lease breached by the other party shall not waive the right to enforce a
subsequent breach of the lease by the same party and the acceptance of rent
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following the breach shall not be deemed a waiver of Lessor's right to enforce
the-Lessee's failure.to comply with any term of the lease.
IN WITNESS WHEREOF, this lease has been executed-by Lessee this
day of 1986, and by Lessor this 4th day- of
June 1986.
"LESSEE"
Joh E. Jen
"LESSOR"
City of Ukiah, a Municipal
Corporation
L
Mayor
ATTEST:
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October 11, 1991
LEASE RATE COMPARISONS ON UKIAH MUNICIPAL AIRPORT
THE PLANE WORKS - 0.505 acres at $106.48 per month = $210.85 acre per month.
(Hanger not owned by City.) -
GORDON AIR SERVICE - 0.34 acres at $209.00 per month - $614.70 acre per month.
ACE AERIAL NO. 1 - 0.43 acres at $142.00 per month = $330.23 acre per month.
ACE AERIAL NO. 2 - 0.43 acres at $290.00 per month = $674.42 acre per month.
FETZER HANGER - 0.43 acres at $810.00 per month = $1,883.72 acre per month.
RETEC HANGAR - 0.43 acres at $810.00 per month = $1,883.72 acre per month.
PORT-A-PORT - 0.04 acres at $78.00 per month = $1,950.00 acre per month.
SMALL PASCO - 0.05 acres at $98.00 per month = $1,960.00 acre per month.
LARGE PASCO - 0.05 acres at $107.00 per month = $2,140.00 acre per month.
PORT-A-PORT TWIN - 0.06 acres at $148.00 per month = $2,466.67 acre per month.
JENSEN LEASE (PROPOSED) - 1.4. acres at $978.46 per month = $698.90 acre per
month.
R:ENG2
LEASE RATE
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WHOLESALE LUMBER LEASES
ON UKIAH MUNICIPAL AIRPORT
JAMES L. CAGLE/CAGLE WHOLESALE LUMBER COMPANY
June 1, 1980 - May 31, 1985 $250 per month
June 1, 1985 - May 31, 1990 Rate to be negotiated
JAMES L. CAGLE/CAGLE WHOLESALE LUMBER COMPANY - SUPPLEMENT NO. 1 TO ABOVE
LEASE
June 1, 1985 - May 31, 1990
(Reduction of 1 acre in Lease area
and relocation of westerly fence)
June 1, 1990 - May 31, 1995
June 1, 1995 - May 31, 2000
$250 per month
Rate to be negotiated
Rate to be negotiated
May 24, 1988 - Request by Cagle to cancel lease and lease to Ukiah
Wholesale Lumber.
UKIAH WHOLESALE LUMBER, INC.
June 1, 1988 - May 31, 1995
(Curb and gutter required to be
installed on frontage by
May 31, 1995)
June 1, 1995 - May 31, 2000
$400 per month
Rate to be negotiated
R:ENG2
ASR 10/16/91 JENSEN