HomeMy WebLinkAboutJensen, John E. 1991-11-19 (3)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
called "Lessee",
W I T N E S S E T H:
Lessor doer hereby lease to Lessee for the term of one (1) year from and
after the first day of April, 1991, 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
in Exhibit 11A" attached hereto and incorporated herein, pursuant to the
following 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 April 1, 1991 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 $978.46 per month and shall increase each April 1 by an amount
equal to the preceeding January to January increase in the San Francisco Bay
area Consumer Price Index.
3. 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 notify Lessor
that is exercising its option to renew the lease at least thirty -(30) days
prior to the expiration of the term of the lease. 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.
4. Reversion. Upon termination of this lease for any reason or 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, including all trade or other accessory structures or
buildings, fixtures that have become an intergral part of the building, built
on the leased premises and paved parking area. Any other fixtures or
temporary structures such as poly green houses located on the leased premises
that are not removed within ten (10) days of the termination of the lease or
A expiration of the lease term shall become the property of Lessor. For a
period of ten (10) days after termination of the lease or expiration of the
lease term, Lessor shall provide Lessee with reasonable access to the premises
for the purpose of removing fixtures and other property that have not become
the property of Lessor.
5. 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
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herein leased is required for an aviation oriented purpose, Lessor shall give
Lessee six (6) months written notice to vacate.
6. Maintenance. Lessee agrees to maintain all of said property leased
hereunder and such improvements as are placed thereon in good condition and
repair.
7. 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.
8. Parcel Access. Access to leased parcel shall be from the current
airport access road which forms the approximate south boundary of said parcel.
Lessor shall maintain said roadway as an all—weather roadway.
9. Change of Ownership. This lease and the improvements placed thereon
shall not be sold, assigned, transferred, sublet nor underlet by the Lessee
except upon submitting written notification thereof to the Lessor thirty (30)
days prior to any change in ownership. At the time of said change of owner-
ship, the rental rate for said leasehold shall be subject to renegotiation
between the new owner and the City of Ukiah. This paragraph shall not apply
to transfer to a corporation in which Lessees have a controlling interest or
to a partnership in which Lessees or either of them have at least fifty—one
percent (51%) interest. The addition of immediate family members as Lessees
or as operators of the business shall not be deemed a "change of ownership".
10. Signs. Lessee shall have the right to install on the leased
premises such sign or signs as are approved by the City Manager of the City of
Ukiah prior to installation of said sign.
11. Performance. Lessee agrees that if it should fail to keep, comply
with or perform any of the agreements, covenants or conditions of this lease,
Lessor shall have the right, upon thirty (30) days written notice, to
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terminate this lease and to enter upon said premises and remove therefrom all
persons and property and repossess itself thereof as of its first and former
estate, except that all improvements shall become the property of Lessor as
provided in Paragraph 4.
12. Possession. Upon conforming to and abiding by all of the
agreements, covenants and conditions of this lease, Lessee shall have the
right to the enjoyment and peaceful possession of the premises hereby leased
and free access thereto for itself and its customers and business invitees to
the Ukiah Municipal Airport and the premises upon which the same is situated;
provided, however, that such access may not interfere with or jeopardize the
use of said airport for the landing or launching or parking of aircraft.
13. Setback Limits and Height Restrictions. All improvements installed
on the leased premises shall be required to conform to any setback or height
limit established by any law, ordinance or FAA regulation now existing or
which may be adopted hereafter.
14. Federal Agency Regulations. This agreement shall be subordinate to
the provisions of any existing or future agreement between the City and the
United Stated of America, or any agency or administrative arm thereof and to
any rules, regulations or policies adopted by the United States of America, or
any agency or administrative arm thereof, relating to the operation. or
maintenance of the Ukiah Municipal Airport. Should this lease be required to
be terminated for any of the foregoing reasons, it is agreed that Lessee shall
terminate and remove therefrom all of his property, except such property as
shall become the property of Lessor under Paragraph S, and vacate such leased
premises within thirty (30) days after receipt of a written termination notice
from Lessor.
In that connection it is specifically agreed that Lessee in the use and
operation of this lease will not on the grounds of race, color or national
origin discriminate or permit discrimination against-- any person or group of
persons in any manner prohibited by any rules, regulations or policies adopted
by the United States of America, or any agency or administrative arm thereof.
Lessee hereby grants to Lessor the right to take such action as the government
of the United States of America may direct to enforce such covenant.
15. Insurance. Lessee shall provide at his own expense insurance
covering bodily injury to all persons in a minimum amount of Three Hundred
Thousand ($300,000) Dollars for each person and Five Hundred Thousand
($500,000) Dollars for each accident, and property damage in the minimum
amount of One Hundred Thousand ($100,000) Dollars each accident for any
occurrence in, on, or related to said property. Lessee shall name Lessor as
an additional insured and shall furnish to Lessor a Certificate of Insurance
showing that said insurance required hereunder has been obtained. Such
insurance shall be kept in force throughout the entire term of this lease or
any extension thereof. Further pursuant to the same conditions stated as
applied to bodily injury and property damage 'insurance, the Lessee shall
secure fire insurance upon the improvements placed on the leasehold in an
amount sufficient to indemnify the Lessee, and the Lessor as additional
insured, in the event of damage to or destruction of the improvements.
16. Release and Indemnification. This lease is made upon the expressed
condition that Lessor, and its officers, agents, and employees, 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 sidewalks and areas immediately adjacent to the
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within described property, during 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 of and whatsoever nature on account of
any and all damage to, or loss or destruction of any property, or 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. This indeminification of Lessor shall not
include personal injuries or property damage proximately and exclusively
caused by the sole negligence of Lessor or its officers or employees.
17. Binding Agreement. This agreement, unless otherwise noted, shall be
binding upon and shall inure to the benefit of the successors, assigns, heirs,
partners or legal representatives of each party.
18. 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.
19. 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
1575 South State Street
Ukiah, California 95482
M
"TO LESSOR"
City Manager
300 Seminary Avenue
Ukiah, California 95482
20. 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
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 , 1991, and by Lessor this day of
1991.
"LESSEE"
1°LESSOR"
City of Ukiah, a Municipal
Corporation
John E. Jensen Mayor
R: AGREE
Jensen Lease
ATTEST:
City Clerk
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