HomeMy WebLinkAboutNorgard Properties 2005-08-30LEASE AGREEMENT
This Lease is made and entered on this~`~ day of & u5 e 2005 ("Effective Date"), by
and between Norgard Properties, Inc. ("Lessor"), a California for-profit corporation, and the City
of Ukiah, a California general law municipal corporation ("Lessee").
RECITALS:
1. Lessor owns currently unimproved property to the north and east of and partially
adjacent to property owned by Lessee and used by Lessee for a wastewater treatment
plant. (the "Treatment Plant"). Lessor's property is known as 2070 Old River Road,
Ukiah, CA. 95482 and Mendocino County Assessor Parcel No. 184-100-04, and is
more particularly described in the attached Exhibit A.
2. Lessee is contracting for the construction of major reconstruction and upgrading of
the Treatment Plant ("the Project).
3. In connection with the Project, Lessee's contractor and its subcontractors need an
area in close proximity to the Project site for the storing and staging of equipment and
materials that will be used in the Project.
4. Lessor is willing to lease to Lessee and Lessee is willing to hire from Lessor a portion
of Lessor's property which is depicted and described in the attached Exhibit B. The
portion of Lessor's property designated on Exhibit B as "the Premises," is
approximately 3 acres in size and will be referred to herein as the "Leased Premises."
The portion of Lessor's property designated on Exhibit B as "the Option Site"
consists of approximately one acre of land adjacent to the Leased Premises.
LEASE AGREEMENT
1. LEASE.
The parties hereto agree that on the terms and conditions hereinafter expressed Lessor
does hereby let to Lessee and Lessee does hereby hire from Lessor the Leased Premises.
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Lessor hereby extends to Lessee and Lessee hereby accepts from Lessor an option to
lease the Option Site on the same terms and conditions. Upon Lessee's exercise of the
option, the Option Site shall be considered part of the Leased Premises, and all references
to the Leased Premises herein will, upon Lessee's exercise of the option, include the
Option Site
2. TERM.
2.1 The term of this Lease is for a period of three years commencing on
September 1, 2005, and continuing until midnight, August 31, 2008, unless earlier
terminated as further provided herein.
2.2 The lease of the Option Site shall commence on the date within the term of
this Lease, when Lessee provides written notice to Lessor of its intent to exercise the
option to lease the Option Site, and shall continue for the balance of the lease term.
3. RENT.
3.1 Lessee shall pay Lessor as rent for the Leased Premises $3750 per year,
payable annually, commencing on September 1, 2005, and on the first of each September
thereafter. Rental shall be considered delinquent, if Lessor does not receive the rent by
the lot" day of the month. Lessee, at its option, may prepay all or a portion of the rent.
3.2 Lessee shall pay Lessor as rent for the Option Site $1250 per year or any
portion thereof, payable in annual payments, commencing upon the date Lessee exercises
the option to lease the Option Site and continuing on the same date each month thereafter
during the lease term.
4. USE AND IMPROVEMENTS.
4.1. Lessee shall use the Leased Premises and the Option Premises, exclusively
as a "lay down" or storage area for equipment, supplies and materials to be
used by Lessee's contractor and subcontractors in the Project. Lessee, its
contractor and subcontractors and others utilizing equipment, supplies and
materials for the Project shall have access to and the use of the Leased
Premises for these purposes.
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4.2, Improvements, excavations, removal of any trees, brush, grass or
improvements and other modifications to the Leased Premises shall be the
sole responsibility and expense of Lessee and shall be approved by Lessor
prior to conducting work.
4.3. Lessee agrees to keep the premises and all improvements in good repair
and order, and to bear the full cost for maintenance of all improvements.
4.4. Lessee shall acquire any necessary or required permits from the
appropriate regulating body for the use of the Leased Premises.
4.5. Lessee shall not use or permit the leased premises to be used except in
compliance with all applicable laws.
4.6. Lessee shall not permit any damage to or contamination of the Leased
Premises and upon termination of the lease shall leave the Leased
Premises in the same condition it was in at the commence of the lease
term.
5. ASSIGNMENT.
Lessee will not assign this Lease or any interest herein and will not let or underlet the
Leased Premises or any part thereof without the prior written consent of the Lessor. Use
of the Leased Premises by Lessee's contractors, subcontractors and agents in connection
with constructing the Project shall not be considered an assignment or sublease in
violation of this paragraph.
6. INDEMNIFICATION.
Lessor shall not be liable for and is free from the cost of any damages for personal injury
or property damage resulting from the use made by Lessee of the Leased Premises, and
agrees to indemnity and save harmless said Lessor and its officers, agents and employees
from and against any and all liability, loss, cost, or other obligation to the extent caused
by the Lessee's use of the Leased Premises.
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7. TERMINATION.
Failure to comply with any provision of this lease within a period of thirty (30) days
following receipt of a written notice of noncompliance from Lessor shall constitute a
material breach of the lease and furnish grounds for termination of this lease.
8. TIME OF ESSENCE.
Time is of the essence in this agreement.
9. WAIVER.
Lessor's waiver of any default in Lessee's performance of any condition of this Lease,
including the obligation to pay rent, shall not constitute a waiver of remedies available
for a subsequent breach of the same or a different condition of this Lease. Acceptance of
subsequent rental payments from Lessee or its assignees shall not constitute a waiver of
the failure of Lessee to pay rent or obtain prior approval to an assignment of this Lease.
10. NOTICES.
Any written notice required or permitted by this lease shall be deemed given, when
placed in the Unites States mail, postage prepaid and addressed as follows:
TO LESSEE: TO LESSOR: A," .T,vc
City Manager t3 l f~ OW tV of d ~X
Ukiah Civic Center (tk-ta ~ / CA C/,vs,~
300 Seminary Avenue
Ukiah, CA 95482 Ukiah, CA 95482
11. PARAGRAPH HEADINGS.
Paragraph headings are included for the convenience of the parties and are not intended
to define or limit the scope of this Lease.
12. PREVIOUS AGREEMENTS.
Any and all existing statement or agreements, whether oral or written, or renewals
thereof, between the parties hereto, covering the same subject matter, are hereby canceled
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and superseded by the terms of this Lease, and such prior agreements, statements or
understandings shall have no further force or effect.
13. DUPLICATE ORIGINALS.
This Lease may be executed in one or more duplicate originals each bearing the original
signature of both parties and when so executed any such duplicate original shall be
admissible as proof of the existence and terms of this Lease.
Entered into on the Effective Date.
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