HomeMy WebLinkAboutNorth Coast Railroad Authority (NCRA) 2009-08-24 CAM,
UKIAH TRAIN DEPOT LEASE
BY THIS LEASE(hereinafter"Lease"),the North Coast Railroad Authority, a governmental
agency establish by Title 12 of the Government Code,commencing with Section 93000
("NCRA") leases to the City of Ukiah,a general law municipal corporation,("Lessee")"the
Premises"in the City of Ukiah, California,which is depicted in the attached Exhibit A.
Within sixty(60)days after the Commencement Date,defined below,the City will prepare
for NCRA approval a legal description of the Premises consistent with the depiction in
Exhibit A which will be signed and dated by authorized representatives of the Parties and
thereupon become Exhibit A to this Lease. Collectively,NCRA and Lessee are referred to
herein as"the Parties."The Premises includes the Ukiah Train Station Building, sufficient
land surrounding to the building to provide adequate parking, landscaping and outdoor
amenities for the uses permitted by this Lease and sufficient access from Perkins Street to
meet applicable requirements and standards adopted by the City of Ukiah, including in its
zoning, subdivision and building codes.
RECITALS
1. The Premises is a portion of the property purchased by NCRA from the Union Pacific
Railroad Company on April 30, 1996.
2. A train depot was constructed on the Premises and used as a train depot,commencing on
or about 1928. However, Ukiah was last served by passenger rail service on or about 1971.
Since that time,the train depot has been vacant and has deteriorated through non-use and
neglect.
3. NCRA applied for a Transportation Enhancement Grant("TEA Grant")and Lessee
applied for Surface Transportation Improvement Program funding("STIP")through the
Mendocino Council of Governments(MCOG). MCOG administers funding provided from
the California Department of Transportation ("Caltrans"), by the Federal Highway
Administration ("FHWA"). The TEA and STIP funding totals$346,674(TEA - $145,674
and STIP= $201,000,a portion of this funding has already been expended for initial studies
and preparation of bid documents), which is to be used to rehabilitate the train deport
building which has an historic connection to surface transportation.
4. The City of Ukiah has taken the lead in completing the application for these grants and
preparing plans and specification for the rehabilitation of the Ukiah Train Depot.
5. The City has approved the plans and specifications and has advertised for bids for the
Ukiah Train Depot Restoration Project. In addition to the TEA Grant and STIP funding,the
City will use up to$106,000 of funds from the City of Ukiah's Redevelopment Agency
("URA") for the project.
6. FH WA, Caltrans and the URA require the City to have possession and control over the
Premises during the construction and for not less than 50 years thereafter.
7. As the Lessee,the City of Ukiah will sublease the Premises for purposes allowed under
this Lease and assume responsibility for the maintenance of the Premises, including the
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rehabilitated train depot, until such time as NCRA reestablishes regular scheduled passenger
rail service to the City of Ukiah,when all or a portion of the Premises shall become available
to NCRA for use as a train depot.
SECTION 1 -OCCUPANCY
1.01 Lease Term.
A.This Lease shall commence on flu ;} 2009("Commencement Date"),and shall
continue thereafter for a period of Fit, (50) years,terminating at midnight on j4e1u$f '
2059,unless extended or terminated as provided herein. Lessee may terminate this Lease
on or after the end of the 20th year following the Commencement Date by giving NCRA
written notice of termination not less than Ninety(90)days prior to the termination date.
B. The Lessee shall have the option to extend the lease term for an additional 25 years on
the same terms and conditions. To exercise the option,the Lessee must provide NCRA
with written notice thereof,not less than ninety(90)days prior to the termination date.
C. During the term and upon the restoration or the imminent restoration of rail service to
the City of Ukiah,NCRA may demand on behalf of itself,its Contract Operator or its
passenger easement grantee,the right to use the Premises for railroad purposes. To
exercise this right, not less than 365 days prior to the date,when NCRA wants to
commence use of the Premises as a train station,NCRA shall give written notice to
Lessee that it seeks to renegotiate the terms of this Lease for this purpose. For a period
not to exceed ninety(90) days from the date notice is given, unless both Parties agree in
writing to extend the period of negotiations,the Parties shall negotiate in good faith over
amendments to the Lease to share the use of the Premises. If the Parties fail to reach
agreement within such period of negotiations,the Lease shall terminate at midnight on
the 365th day after NCRA gave the notice authorized by this paragraph;provided that: (1)
NCRA receives written approval of the lease termination from Caltrans; and(2) It agrees
in writing to fully indemnify and defend the City and the City's Redevelopment Agency,
and their directors,officers, agents and employees from and against any claim, liability,
cost or expense based on an actual or alleged violation of the TEA Grant or STIP funding
resulting from the acts or omissions of NCRA, its Contract Operator,its passenger
easement grantee,or their directors,officers,agents,employees,or contractors.
1.02 Condition of Premises. Lessee assumes full responsibility for the condition of the
train depot building and takes possession of the building in its AS IS condition without
any representation or warranty by NCRA as to its condition or its suitability for the uses
intended or made of the building by Lessee. Lessee does not assume responsibility for
any other conditions of the Premises,existing on the Commencement Date("the Existing
Conditions"),including,but not limited to,the condition of the soils, underlying
groundwater or the condition of adjacent lands or waters. NCRA agrees to fully and
completely indemnify and defend Lessee from and against any claim, liability or expense
of any nature whatsoever arising out of or based on the Existing Conditions, including the
contamination of the Premises by any substance defined as hazardous or toxic by any
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local,state or federal law, including, but not limited to,the California Hazardous
Substances Account Act,the Porter Cologne Water Quality Act,the Clean Water Act,the
Comprehensive Environmental Response,Compensation, and Liability Act(CERCLA),
and the Resource Conservation and Recovery Act("RCRA"). NCRA's obligation to
indemnify Lessee as provided in this Section 1.02 shall continue after termination of this
Lease. Lessee shall indemnify and defend NCRA for any such condition created after the
Commencement Date by lessee or its sublessees.
SECTION 2 USE OF PREMISES
2.01 Permitted Use. Lessee shall use the premises exclusively for uses related to surface
transportation or as approved by Caltrans or the California Transportation Commission
("CTC")and which comply with any conditions limiting the use of the Premises imposed by
the particular TEA Grant and STIP funding awarded for the Ukiah Train Depot
Rehabilitation Project.
SECTION 3 RENT
3.01 Rent. As and for rent, Lessee shall pay to NCRA$1 per year,which NCRA must
receive on or before the Commencement Date of the first Fifty(50)year term and on or
before the commencement of the Twenty-Five(25)year extended term.
SECTION 4 RESERVATIONS
4.01 Compliance.The NCRA shall have access to the Premises at all reasonable times to
determine and secure compliance with this Lease. Failure to inspect or enforce compliance
shall not be construed as a waiver of the NCRA's right to declare a breach, nor relieve Lessee
of any liability to NCRA for any breach of the terms,conditions,or requirements of this
Lease.
SECTION 5-SPECIAL RESTRICTONS
5.01 Conformance with Laws. Lessee shall cause all work on the Premises and all business
conducted thereon during the term to be performed in accordance with all applicable laws
and all directions and regulations of all governmental agencies and the representatives of
such agencies having jurisdiction. In no event shall Lessee undertake or suffer any activity to
be conducted upon the Premises which constitutes a nuisance or which is a threat to the
health or welfare of the general public.
SECTION 6-UTILITIES,TAXES,LIENS
6.01 Utilities and Maintenance. During the term of this Lease, Lessee shall pay all expenses
incurred by Lessee in the use,enjoyment,and operation of the Premises, including,but not
limited to,utility charges and all costs of maintaining and repairing the Premises, including,
but not limited to,the Depot Building and any parking areas,and,except as provided in
Section 1.02,all improvements thereon whether now existing or hereafter installed by Lessee.
Lessee shall indemnify and hold the NCRA harmless against any loss, liability,or expense
resulting from any failure of Lessee to pay all such charges,when due.
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6.02 Taxes and Assessments. Lessee shall pay during the term of this Lease any taxes,
including ad valorem real property taxes, if any,and any other governmental charges of any
kind applicable or attributable to the Premises or improvements to the Premises, Lessee's
leasehold interest therein,and Lessee's use and enjoyment thereof.
6.03 Lessee Liens.Lessee shall not suffer or permit any lien to be filed against NCRA's
interest in the Premises,or improvements thereon by reason of work, labor,or services
performed thereon or materials supplied to, by or through the Lessee. If any such lien is filed,
Lessee shall cause the same to be discharged of record within thirty(30)days after the date
of filing or creation of such lien unless other arrangements are authorized in writing by
NCRA in advance. Lessee shall indemnify NCRA for any costs,damages or expenses
(including attorneys'fees and court costs)incurred as a result of such liens or in obtaining
their discharge whether such costs,damages or expenses were incurred prior or subsequent to
termination or cancellation of this Lease.
SECTION 7 LESSEES INDEMNITY; INSURANCE REQUIREMENTS
7.01 Indemnity. Lessee releases, indemnifies and shall defend(with counsel acceptable to
NCRA)NCRA, its directors,employees and officers from and against any and all claims
arising out of the use,occupation or control of all or any portion of the Premises by Lessee,
its agents,employees,and sublessees.A "claim" as used in this subsection means any claim
of any nature whatsoever for penalties,financial loss,damages(including but not limited to
bodily injury, sickness,disease or death,or injury to or destruction of property, land and
other natural resources including the loss of use thereof),costs or expenses(including but not
limited to attorney's fees),whether or not resulting in a suit or action or reduced to judgment.
Lessee shall not be required to indemnify NCRA from NCRA's negligence or willfully
wrongful acts or omissions.
7.02 Insurance Requirements.
Lessee shall,at all times during the term of this Lease, buy and maintain coverage
under the Memorandum of Coverage provided to the City by the Redwood Empire Municipal
Insurance Fund ("REMIF"),which shall include coverage for General Public Liability,
Automobile Liability, worker's compensation and Fire and Extended Coverage insurance in
the amounts listed below. If Lessee subleases the Premises,either the Lessee's insurance
coverage shall include the conduct of its sublessee or it shall require its sublessee to procure
insurance meeting the requirements in this paragraph 7.02 which shall name Lessor and
Lessee as additional insureds.
A. Minimum Limits of Insurance
Lessee shall maintain limits no less than:
1. General Liability: $1,000,000 combined single limit per occurrence
for bodily injury, personal injury and property damage. If
Commercial General Liability Insurance or other form with a general
aggregate limit is used, the general aggregate limit shall apply
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separately to the work performed under this Agreement, or the
aggregate limit shall be twice the prescribed per occurrence limit.
2. Automobile Liability: $1,000,000 combined single limit per accident
for bodily injury and property damage.
3. Worker's Compensation and Employers Liability: Worker's
compensation limits as required by the Labor Code of the State of
California and Employers Liability limits of$1,000,000 per accident.
4. Fire and extended coverage insurance, insuring the Depot Building
for its replacement cost.
5. Every five (5) years after the Commencement Date, the policy limits
shall increase by the increase in the cost of living for that time period.
The cost of Iiving increase shall be, as applicable, the percentage
change in the Consumer Price Index ("CPI") between the
Commencement Date and the same date five years later or the date of
the last policy limit cost of living adjustment and the same date five
years later. CPI means the Consumer Price Index For San Francisco-
Oakland-San Jose, CA, All Items (base year 1982-1984 — 100),
published by the United States Department of Labor, Bureau of Labor
Statistics. In the event the CPI is discontinued or otherwise not
available, "CPU' shall mean such comparable statistics on the
purchasing power of the consumer dollar as is reasonably agreed on
between the Lessor and Lessee.
B. Deductibles
Deductibles which apply under the REMIF Memorandum of Coverage are
hereby approved.
C. Other Insurance Provisions
The policies are to contain, or be endorsed to contain, the following
provisions:
1. General Liability and Automobile Liability Coverages
a. The NCRA, it directors, officers, officials, and employees are
to be covered as additional insureds as respects; liability
arising out of activities performed by or on behalf of the
Lessee, products and completed operations of the Lessee,
premises owned, occupied or used by the Lessee, or
automobiles owned, hired or borrowed by the Lessee. The
coverage shall contain no special limitations on the scope-of-
protection afforded to the NCRA, its directors, officers,
officials,or employees.
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b. The Lessee's insurance shall apply separately to each insured
against whom claim is made or suit is brought, except with
respect to the limits of the REMIF's liability.
2. Worker's Compensation and Employers Liability Coverage
The Workers Compensation insurer shall agree to waive all rights of
subrogation against the NCRA, its officers,officials,and employees
or losses arising from Lessee's activities pursuant to this Lease.
D. Verification of Coverage
Lessee shall furnish the NCRA with notices from REMIF evidencing the
coverage required by this Lease.
SECTION 8 ASSIGNMENTS
8.01 Lessee Assignment. Lessee shall not assign this Lease,without the prior written consent
of the NCRA. Any such assignment shall constitute a default under this Lease and shall
entitle the NCRA to terminate this Lease,and recover possession of the Premises from
Lessee and its assigns. No act or omission by NCRA after any assignment of the Premises,
including the acceptance of rent,shall waive the NCRA's right to terminate this Lease based
on such assignment.
8.02 Subleases. Lessee shall have the right to sublease the Premises without the prior
approval of NCRA,provided that any such sublease shall be subject to the terms of this
Lease,as they apply to a subtenant, including Section 1.01.
SECTION 9 IMPROVEMENTS
9.01 Authorized Improvements. Lessee is authorized to perform the Ukiah Railroad Depot
Rehabilitation Project, Specification No. 08-09 and to make further repairs or replacements
as necessary to use the premises for purposed allowed under this lease. All such work shall
be performed in compliance with applicable local,state and federal laws.
9.02 Ownership of Improvements. All improvements existing on the Premises on the
Commencement Date belong to the NCRA. During the Term of this Lease,the
improvements constructed by Lessee, including without limitation all additions,alterations
and improvements thereto or replacements thereof and all appurtenant fixtures shall be the
property of the NCRA. At early termination,or expiration of this Lease,all existing
improvements and all additions,alterations and improvements thereto or replacements
thereof and all appurtenant fixtures, shall remain the property of the NCRA. Throughout the
term of this Agreement, Lessee shall not permit any claim of lien made by any mechanic,
materialman, laborer,or other similar liens to stand against the Premises for work or labor
done, services performed,or materials used or furnished to be used in or about the Premises
for or in connection with any construction, improvements or maintenance or repair thereon
made or permitted to be made by Lessee, its agents,or sublessees.Any liens,encumbrances
or claims of third parties with respect to any of the foregoing,shall be expressly subordinate
and subject to the rights of NCRA under this Lease.
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9.03 Third Party Claims. Lessee shall indemnify,defend and hold harmless NCRA and the
Premises from and against all claims and liabilities arising by virtue of or relating to
construction of the improvements or repairs made at any time to the improvements(including
repairs). Lessee shall regularly and timely pay any and all amounts properly payable to third
parties with respect to such.
9.04 Permits; Compliance with Codes.Lessee shall cause all work on the Premises
during the Term to be performed in accordance with all applicable laws and to cause the
authorized improvements and the Premises to comply with all applicable governmental
laws,statutes, rules,regulations and/or ordinances that apply to the Premises during the
Agreement Term, whether now in effect,or hereinafter adopted or enacted.
9.05 NCRA's Repairs.NCRA shall not be required or obligated to make any changes,
alterations,additions, improvements,or repairs in,on,or about the Premises,or any part
thereof.
9.06 Effect of Damage or Destruction. In the event of any damage to or destruction of the
Premises or any improvements thereon from any causes whatever, Lessee shall promptly give
written notice thereof to NCRA and Lessee may in its sole discretion elect either to repair and
restore the Premises or terminate the lease. Any insurance proceeds from Lessee's insurance
payable by reason of such damage or destruction shall be made available to pay the cost of
such reconstruction,even if Lessee elects to terminate the lease.
SECTION 10 DEFAULT AND REMEDIES
10.01 Default by Lessee. In the event of any material breach of any provision of this Lease
by Lessee,NCRA shall be entitled to terminate this Lease and seek any other remedies set
forth in this Lease or otherwise available at law or equity.NCRA shall not terminate this
Lease, unless Lessee shall fail to promptly commence to cure the breach and shall cure the
breach within forty-five(45)days of notice of default from NCRA. If such breach is not
reasonably susceptible of being cured in said forty-five(45)days, Lessee shall commence to
cure such breach within said period and diligently pursue such action with continuity to
completion.
10.02 Survival.All obligations of NCRA or Lessee to be performed prior to the expiration or
earlier termination shall cease upon the termination or expiration of this Lease,provided
however,that all clauses of this Lease that require performance beyond the termination or
expiration date shall survive the termination or expiration date of this Lease.Upon expiration
or earlier termination of this Lease,the rights of Lessee and of all persons,firms,
corporations,and entities claiming under Lessee in and to the Premises and all improvements
hereon, unless specified otherwise in this Agreement,shall cease.
10.03 NCRA's Right to Cure Defaults. If Lessee fails to perform and is in default of any
undertaking or promise contained herein,the NCRA shall have the option,but is not
obligated,to make such performance after giving ten(10)days written notice to the Lessee.
Except to the extent that Lessee would be entitled to deduct Allowable Expenses as provided
in Paragraph 3.01,the NCRA's costs and expense to correct Lessee's failure to perform shall
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be reimbursed by Lessee and shall be immediately due and payable,together with interest
accruing from the date such cost or expense is incurred.
10.04 Remedies Cumulative.The specified remedies to which the NCRA may resort under
the terms of this Agreement are cumulative and are not intended to be exclusive of any other
remedies or means of redress to which NCRA may lawfully be entitled in case of any breach
or threatened breach by Lessee of any provision of this Agreement.
10.05 Nonwaiver. Waiver by the NCRA or Lessee of strict performance of any provision of
this Lease shall not be a waiver of nor prejudice the right of NCRA or Lessee to require
strict performance of the same provision in the future or of any other provision.
10.06 Force Majeure.The Lessee's failure to comply with any of the obligations under this
Leasse shall be excused only if due to causes beyond Lessee's control and without the fault or
negligence of the Lessee, including acts of God,acts of the public enemy,acts of any
government,fires,floods,epidemics and strikes.
SECTION 11 GENERAL PROVISIONS
11.01 Governing Law.This Agreement shall be construed, interpreted and enforced
pursuant to the laws of the State of California.Venue shall be in Mendocino County each
party waving any right to object to venue,to seek the appointment of an out of county judge
or to seek a change of venue. The terms of this Agreement shall be given their ordinary
meaning and shall not be presumed construed in favor of or against either party hereto.
11.02 No Partnership.The NCRA is not a partner nor a joint venturer with the Lessee in
connection with the activities conducted and business carried on under this Lease,and the
NCRA shall have no obligation with respect to the Lessee's debts or other liabilities.
11.03 Preservation of Markers. Lessee shall not destroy any land survey corner monuments,
reference points(including but not limited to corner markers,witness objects,or line
markers),and the United States Geological Survey benchmark on the Premises.
11.04 Interpretation and Numbering. Paragraph and Subparagraph numbers, headings,or
titles are for convenience only and are not to be construed to limit or to extend the meaning
of any part of this Lease.
11.05 Time of Essence.Time is expressly declared to be of the essence of this Agreement
and each and every covenant of Lessee and the NCRA hereunder.
11.06 Amendments. Any amendments,revisions,supplements,or additions to this
Agreement or the attached exhibits shall be made in writing executed by the parties hereto,
and neither NCRA nor Lessee shall be bound by verbal or implied agreements. Such changes
may be made by re-execution of the signature page and the deletion and addition of the
appropriate new effective pages or exhibits governing the change, if any.
11.07 Entire Agreement.This written Lease or its successor or replacement contain the
entire agreement of the parties hereto with respect to the matters covered hereby,and no
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other agreement,statement or promise made by any party hereto,or to any employee,officer
or agent of any party hereto,which is not contained herein,shall be binding or valid.
11.08 Invalidity.If any term or provision of this Agreement or the application thereof to any
person or circumstance shall to any extent prove to be invalid,unenforceable,void,or illegal,
the remainder of this Agreement,or the application of such term or provision to persons or
circumstances other than those as to which it is invalid or unenforceable,shall be not affected
thereby, and each term and provision of this Lease shall be valid and be enforced as written
to the fullest extent permitted by law.
11.09 Attorney Fees. If either party brings suit to interpret or enforce any provision of the
agreement,the prevailing party shall be entitled to recover from the other party reasonable
attorney fees,and court costs actually incurred in connection therewith, including those
incurred on appeal, in addition to all other amounts provided by law.
11.10 Notices and Submittals.Any notice or submittal given under this Lease shall be
deemed as received when delivered by hand, fax or upon deposit in the United States mail
with first-class postage affixed,addressed as noted.Changes of address may be given in
accordance with this section.Any notice or submittal given under this Lease shall be:
To the NCRA:
Executive Director
415 Talmage Road
Ukiah,CA. 95482
FAX: 707-463-3282
To the Lessee:
City of Ukiah
Attention: City Manager
Ukiah Civic Center
300 Seminary Ave.
Ukiah,CA 95482
FAX: 707-463-6204
14. Dispute Resolution. Before commencing litigation,other than an unlawful detainer
action,the Party that desires to initiate such action(the Complainant)must make a good faith
attempt to mediate such dispute in accordance with this Section. The Complainant shall send
the other party(ies)(the Respondent)written notice of the nature of the dispute,the facts
giving rise to such claim and the Complainant's desire to mediate the matter(the Mediation
Notice). The Mediation Notice shall name a mediator(who shall have at least three(3)years'
experience mediating real estate disputes in Mendocino County and no personal or business
relationship with the Parties).The Parties shall share the cost of initiating and conducting
mediation equally. Within seven(7)days of Respondent's receipt of the Mediation Notice,
Respondent shall inform Complainant in writing if Respondent does not agree with
Complainant's choice of mediator(the Rejection Notice). Such Rejection Notice shall
include the name of Respondent's choice of qualified mediator as provided in this Section. If
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the parties are unable to agree upon a mutually acceptable mediator within seven(7)days of
Complainant's receipt of the Rejection Notice,they shall have no further obligation to engage
in mediation.Within thirty(30)days after a mutually acceptable mediator is chosen,the
parties shall schedule and attend a mediation session and attempt in good faith to resolve
their dispute.If the mediation does not resolve the dispute or if the Respondent refuses to
attend such mediation,the Complainant may commence litigation.The requirements of this
provision shall not apply under circumstances where the NCRA would be entitled to
unlawful detainer relief.
WHEREFORE,the parties have entered this Lease effective on the Commencement Date
CITY OF UKIAH NORTH COA_ ' c' • ILROAD • .T ; TY
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dpf 1 /
By: J, / 14113411‘
e Chambers,City Manager . t
Approved as to form:
ATTEST:
,a . - - -
JoAnne Currie,City Clerk
Law Off of Christopher J.Neary
Approved as to form:
,r / By:
_. i,m,., A j( Christop J. eary,
Dav' "17ap.id,City A tomey NCRA General Counsel
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EXHIBIT A
TO
LEASE BETWEEN NORTH COAST RAILROAD AUTHORITY
AND
CITY OF UKIAH
The following description is made with reference to the attached aerial photograph,
headed"Ukiah Railroad Depot,"referred to herein as"Aerial Photo 1,"and the attached
aerial photograph headed"Exhibit A—Depot Lease"and referred to herein as"Aerial
Photo 2."
The leased premises includes the railroad depot building,shown on Aerial Photo 1,with
its northern edge 146'10"from the southern edge of Perkins Street and its southern edge
57'3"from the building south of the depot building. In addition to the railroad depot
building,the leased premises includes a portion of AP No. 3-031-13 ("the Parcel"),
described as follows: The western boundary of the leased premises is same as the
western boundary of the Parcel. The southern boundary of the leased premises is a line
approximately perpendicular to the western boundary of the leased premises and located
25' south of the southern edge of the depot building. The eastern boundary of the leased
premises begins where the southern boundary of the leased premises intersects the white
line as depicted on Aerial Photo 1 and continues north along a line parallel to the western
boundary of the leased premises until it intersects the eastern boundary of AP No. 3-031-
13 at the point("the Point")shown on Aerial Photo 1 as being 80'3" from the depot
building. From the Point the eastern and northern boundaries of the leased premises are
the same as the boundaries of the Parcel.
NCRA shall retain the right to share with Lessee the use of the portion of the leased
premises providing access from Perkins Street to the Lessor's property that is not leased
to Lessee("the Remaining Property''), and NCRA reserves the right to reconfigure the
parking at its cost either on the leased property or the Remaining Property.
The above description shall constitute the leased premises during the rehabilitation of the
railroad depot building by the Ukiah Redevelopment Agency and unless or until the City
requests an expansion of the leased premises as described below.
At such time that the Lessee has identified a tenant for the depot building or has
otherwise determined how it will use the depot building and leased premises, subject the
following conditions,the Lessee shall have the option to enlarge the leased premises not
to exceed the areas as depicted on Aerial Photo 2: (1)Enlarging the leased premises does
not interfere with Lessor's existing access to its Remaining Property or alternative access
is made available to Lessor that is satisfactory to Lessor;and(2) Enlarging the leased
premises does not interfere with any existing uses of the Remaining Property by Lessor,
or its tenants, Contract Operator or easement grantee.
Upon the exercise of the above-described option and Lessor's approval thereof,the
Parties shall date and execute an addendum to this Exhibit A describing the expanded
boundaries of the leased premises.
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