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HomeMy WebLinkAboutChan, Judy 2021-09-01Page 1 LEASE This Agreement is entered into this ___ day of September, 2021, in Ukiah, California, by and between Judy Chan (“Lessor”), with her principal place of business located at P.O. Box 22187, Sacramento, CA 95822, Ukiah, California 95482, and the City of Ukiah (“Lessee”) with its principal place of business located at 300 Seminary Ave., CA. 95482. Lessor and Lessee shall hereinafter collectively be referred to as the “Parties”. 1.Lease of Premises. Lessor hereby agrees to lease to Lessee and Lessee agrees to lease from Lessor the facilities located at 185 Mason, Ukiah, CA 95482, including office, store-front, warehouse and fenced outdoor area (“Premises”). 2.Term. The term of this Lease shall be for a period of two (2) years, commencing on the date the Lease is signed, through September 30, 2023, with NO obligation on the Lessor to conduct any improvement or deferred maintenance. 3.Option to Renew the Lease. Lessor grants to Lessee one (1) two-year option, to extend the terms for an additional two (2) years, beginning on the date following the expiration date of this agreement, with NO obligation on the Lessor to conduct any improvement or deferred maintenance. In order to exercise this option, Lessee must deliver to Lessor a written notice of Lessee’s intention to do so at least ninety (90) days prior to the expiration of this Lease. 4.Holding Over. Any holding over at the expiration of this Lease may only occur with the express, written consent of Lessor and shall constitute a month-to-month tenancy at a monthly rent equal to that paid during the last month of the Lease term before expiration of the Lease, payable in advance, and otherwise subject to the terms of this Lease. Either party may terminate any such tenancy by giving the other party thirty (30) days written notice. Any other holding over shall constitute an unlawful detainer on the part of the Lessee. 5.Rent. A Deposit Payment of $1,500 will be paid by the Lessee. The value for rent is $1,470 per month, however, the Lessee will provide some small improvements to the facility which will provide for a reduction in rent. The Rent shall be payable on the first Friday of every month, and considered delinquent, if not received by Lessor by the 10th day of the month. The monthly rental rate will increase by 1.5% annually through the term of the Lease. The monthly rental rate for the two year term shall be as follows: 07/01/2021 – 06/30/2022: $1,470; 07/01/2022 – 06/30/2023: $1,492; If the Lessee opts to exercise the option to renew the Lease for another two (2) years pursuant to Section 3 of this Lease, the monthly rental rate for the five-year term shall be as follows: COU No. 2122-086 Page 2 07/01/2023 – 06/30/2024: $1,514; 07/01/2024 – 06/30/2025: $1,537 6. Utilities. Lessee agrees to pay all charges for all utilities, including electricity, gas, water, sewer, garbage disposal, and telephones, used in or on the Premises or charged in connection with Lessee's use of the Premises. Lessee shall make payments for the foregoing directly to the utility companies. Any failure of Lessee to maintain said utilities at the Premises shall be a material breach of this Lease. All garbage and rubbish is to be placed in garbage receptacles approved by Lessor. Receptacles are to be placed at a central location as directed by Lessor. 7. Use of Premises. Lessee is leasing the Premises as an office/warehouse for Lessee’s Parks Department and uses reasonably related thereto. Lessee may not use the Premises or permit the Premises to be used for any other purpose. Lessee shall obtain any and all permits and licenses required by applicable law to engage in the activities on the Premises contemplated under this Lease. Lessee shall not do or permit anything to be done in or about the Premises that will, in any way, obstruct or interfere with the rights of other occupants of the property or of neighboring buildings, injure or annoy them, or use or allow the Premises to be used for any improper or unlawful purpose. Lessee shall not cause, maintain, or permit any nuisance in, on, or about the Premises, or commit any waste in or on the Premises. Lessee shall not do or permit anything to be done in or about the Premises or bring or keep anything in the Premises that will in any way increase the existing rate of or affect any fire or other insurance on the Premises or any personal property therein, or cause a cancellation of any insurance policy covering the Premises, any part of it, or any personal property therein. Lessee shall not use the Premises in any manner that violates Federal law, State law, or any other law applicable to the Premises. 8. Maintenance and Repair. The rights and responsibilities of Lessor and Lessee with respect to the condition of the Premises are as follows: (a) Lessee at its own cost and expense, shall put and maintain the Premises in a safe and sanitary condition, and in good condition and repair, and shall comply with all laws, ordinances, and regulations pertaining to the condition of the Premises. Lessee shall remedy, at Lessee's own cost and expense, any deteriorations of or injuries to the Premises occasioned by Lessee's use of the leased premises. If Lessee fails to maintain the Premises as required herein or to promptly repair any damage to the Premises, Lessor may, but is not required, to provide such maintenance or make such repairs and charge the costs thereof as additional rent hereunder. Lessee shall also be responsible for the store front glass. (b) Lessee acknowledges that it has inspected the Premises, including all Page 3 equipment and personal property subject to this Lease, and agrees that they are in good condition and good working order. Lessee shall make no alterations to the Premises without the prior written consent of Lessor. Any alteration made to the Premises by Lessee after Lessor’s consent has been given and any fixtures installed as a part of that work will, at Lessor's option, become the Lessor's property on the expiration or termination of this Lease. Provided, however, that Lessor shall have the right to require Lessee to remove any such fixtures at Lessee's cost on expiration or termination of this Lease. 9. Entry and Inspection. During the term of this Lease, Lessor may enter the Premises only under the following circumstances: (a) In case of emergency. (b) To inspect the premises during normal business hours and upon reasonable prior notice to Lessee; (c) To make necessary or agreed repairs, alterations, or improvements; to supervise or inspect work performed by Lessee; to inspect the condition of the Premises; supply necessary or agreed services; or to exhibit the Premises to prospective or actual purchasers, mortgagees, lessees, workers, contractors, or government agencies. (d) If Lessee abandons or surrenders the Premises. (e) Pursuant to Court order. 10. Damage to Premises. Within 48 hours of its occurrence, Lessee shall notify Lessor of any damage or accident occurring on the Premises. Subject to the limitations set forth in this Paragraph, if, at any time during the term of this Lease, the Premises are damaged or destroyed by fire or any other casualty covered by Lessor's fire and extended coverage insurance, Lessor shall promptly repair, rebuild, or restore the Premises to substantially the same condition as was originally delivered to Lessee under this Lease. Notwithstanding the foregoing, Lessor shall not be obligated to expend for repairs or rebuilding an amount in excess of the net insurance proceeds recovered by Lessor for damage to the Premises . “Net insurance proceeds” means the total amount of proceeds recovered and attributable to the Premises, less any expenses incurred by Lessor in recovering the proceeds. Lessor shall commence repair, restoration, or rebuilding work, as appropriate, not later than 60 days after the occurrence of the event causing damage or destruction, and shall cause construction to be completed not later than one year after the occurrence of the event causing damage or destruction. If Lessor does not commence or complete construction within the time periods described in this paragraph, Lessee shall have the right to terminate this Lease by giving Lessor written notice Page 4 within 10 days after expiration of the applicable time period. Lessor shall have the right to terminate this Lease and shall have no obligation to repair, restore, or rebuild the Premises under any of the following circumstances: (a) The Premises are damaged or destroyed by a casualty not covered by Lessor's insurance. (b) The Premises is damaged or destroyed by any cause and the cost of repair, restoration, or rebuilding exceeds a total of 85 percent of the then-replacement cost of the building. (c) At least 50 percent of the gross leasable floor area of the Premises is destroyed or damaged by any cause. (d) The Premises are damaged in whole or in part by any cause during the last three months of the term of this Lease. If Lessor elects to terminate this Lease under any of the above circumstances, Lessor shall give written notice to Lessee not later than 30 days after occurrence of the casualty. Such notice shall set forth the date on which the termination is to be effective. That date shall be not less than 30 days, nor more than 60 days, after the date of the termination notice. If the type of partial or total destruction described in Subparagraph (d) of this paragraph occurs, Lessee shall have the same right as Lessor to terminate this Lease, subject to the same notice requirements, provided that Lessee gives its notice of termination prior to the time Lessor commences repairs to or restoration of the Premises. If this Lease is not terminated pursuant to the provisions of this paragraph, Lessor's obligation to repair and rebuild is limited to construction of the perimeter walls, floor, ceiling, and roof of the Premises, and excludes any interior finishing and the store- front for the Premises. The Premises as completed by Lessor shall contain approximately the same amount of gross floor area as existed prior to the damage or destruction. Lessee must, at his own cost and expense, repair and rebuild the Premises to the extent not repaired or rebuilt by Lessor, in accordance with plans and specifications approved by Lessor and in accordance with all applicable building codes. Lessee shall commence its repair and rebuilding and diligently pursue the work to completion promptly after receiving written notice from Lessor that Lessor has completed its repair and rebuilding obligations. All such repairs must be completed within 90 days of receipt of such notice. All insurance proceeds payable with respect to the Premises shall belong to and be payable to Lessor. If Lessor does not elect to terminate this Lease, the insurance proceeds shall be disbursed in the following order: first, to Lessor's cost of rebuilding or restoration; second, to Lessee's cost of rebuilding or restoration, excluding costs covered by Lessee's insurance and also excluding the cost of any Lessee trade fixtures or stock in trade; and third, to Lessor, as Lessor's sole property. No amount shall be paid to Lessee until after the completion of Lessee's work and the expiration Page 5 of the period during which a mechanic's lien arising from Lessee's work could be filed. 11. Hazardous Materials. Lessee will not use, store, or dispose of any hazardous substances upon the premises, except the use and storage of such substances that are customarily used in Lessee’s business, and are stored and handled in compliance with all environmental laws. As used in this paragraph, hazardous substances means any hazardous waste, substance or toxic materials regulated under any environmental laws or regulations applicable to the property. Lessee shall be responsible for the cost of removal of any toxic contamination caused by Lessee’s use of the premises. 12. Insurance and Indemnification of Lessor. Lessor shall not be liable for any damage or injury to Lessee, or any other person, or to any property, occurring on the Premises. Lessee agrees to hold Lessor harmless from any claims for damages arising out of Lessee’s use of the Premises, and to indemnify Lessor for any expense incurred by Lessor in defending any such claim or claims. Lessee shall, at his own cost and expense, cover the Premises under its Memorandum of Coverage from the Redwood Empire Municipal Insurance Fund and name Lessor as an additional covered party under that memorandum. 13. Abandonment of Premises. Lessee shall not vacate or abandon the premises during the term of this Lease. If Lessee does abandon or vacate the premises or is dispossessed by process of law, or otherwise, any personal property belonging to Lessee left on the premises will be deemed to be abandoned, at the option of Lessor. 14. Trade Fixtures. Any and all improvements made to the premises during the term of this Lease shall belong to the Lessor, except trade fixtures of the Lessee. Lessee may, upon termination, remove all his or her trade fixtures, but shall pay for all costs necessary to repair any damage to the premises occasioned by the removal. 15. Assignment and Subletting. Lessee shall not assign this Lease or sublet all or any portion of the Premises unless Lessee first obtains the written consent of Lessor. The consent of Lessor to any one assignment or subletting shall not be deemed to be a consent by Lessor to any subsequent assignment or subletting. Any assignment or subletting without Lessor's prior written consent shall be void and, at Lessor's option, be deemed a material breach of this Lease. This Lease shall be binding on and shall inure to the benefit of the heirs, executors, administrators, successors, and assigns of Lessor and Lessee. 16. Lessor’s Transfer of Title. In the event of a transfer of Lessor’s title to or interest in the Premises during the term of this Lease, Lessee agrees that the grantee of such title or interest shall be substituted as the Lessor under this Lease, and the original Lessor shall be released of all further liability; provided that all deposits will be transferred to the grantee. Page 6 17. Estoppel Certificate. Upon 10 days’ prior written notice from Lessor, Lessee will execute, acknowledge, and deliver to Lessor a statement in writing: “1) certifying that this Lease is unmodified and in full force and effect “or, if modified, stating the nature of such modification and certifying that this Lease, as so modified, is in full force and effect), the amount of any security deposit, and the date to which the rent and other charges are paid in advance, if any; and “2) acknowledging that there are not, to Lessee’s knowledge, any uncured defaults on the part of the Lessor, or specifying such defaults if any are claimed. Any such statement may be conclusively relied upon by any prospective buyer or encumbrancer of the premises. At Lessor’s option, Lessee’s failure to deliver such statement within the time period set forth above shall be a material breach of this Lease or will be conclusive upon Lessee: “1) that this Lease is in full force and effect, without modification except as may be represented by Lessor, “2) that there are no uncured defaults in Lessor’s performance; and “3) that not more than one month’s rent has been paid in advance. If Lessor desires to finance, refinance, or sell the premises, or any part thereof, Lessee agrees to deliver to any lender or buyer designated by Lessor such financial statements of Lessee as may be reasonably required by such lender or buyer. All financial statements will be received by the Lessor or the lender or buyer in confidence and will be used only for the purposes set forth. 18. Default. Lessor and Lessee agree that every condition, covenant, and provision of this Lease is material and reasonable. Any breach by Lessee of a condition, covenant, or provision of this Lease shall constitute a material breach. For any material breach by Lessee, Lessor may serve upon Lessee a written ten-day notice that describes the breach and demands that Lessee cure the default “if a cure is possible). If Lessee does not cure the default within the ten days, or if a cure is not possible, this Lease shall be terminated. The appointment of a receiver, an assignment for the benefits of creditors, or the filing of a petition in bankruptcy by or against Lessee, shall constitute a breach of this Lease by Lessee. 19. Governing Law and Venue. This Lease shall be governed by the laws of the State of California. Venue for any action brought to enforce the provisions of this Lease shall be the Superior Court for the County of Mendocino. 20. Waiver. No failure of Lessor to enforce any term of this Lease will be deemed to be a waiver. 21. Notices. Except as otherwise expressly provided by law, any and all notices or other communications required or permitted by this Lease or by law to be served on or given to either party to this Lease by the other party to this Lease shall be in writing and shall be deemed duly served and given when personally delivered to the party to whom they are directed or any managing employee of that party, or in lieu of personal service, when deposited in the United Page 7 States mail, first-class postage prepaid, addressed to said party at the address set forth in the first paragraph of this Agreement. Either party may change its address for purposes of this paragraph by giving written notice of that change to the other party in the manner provided in this paragraph. 22.Time. Time is expressly declared to be of the essence in this Lease. 23.Construction-Related Accessibility Standards: Lessor states that the Premises has not been inspected by a Certified Access Specialist. 24.Americans with Disabilities Act. The Parties are aware of the existence of the Americans With Disabilities Act, which may require costly structural modifications. The parties are advised to consult with a professional familiar with the requirements of the Act. 25. Authorization to Execute. Each of the Parties represent and warrant that the person executing this Lease is duly authorized to execute agreements and bind on behalf of the party for which they sign. 26.Entire Agreement. This instrument constitutes the entire agreement between Lessor and Lessee respecting the Premises, the leasing of the Premises to Lessee, and the lease term created under this Lease, and correctly sets forth the obligations of Lessor and Lessee to each other as of the date of execution. Any agreements or representations respecting the Premises or their leasing by Lessor to Lessee not expressly set forth in this instrument are null and void. LESSOR LESSEE By: By: ____________________________ Name: Name: ____________________________ Its: Its: ____________________________ SAGE SANGIACOMO CITY MANAGER Chan, Judy - Lease Agmt 185 Mason 2122-086 Final Audit Report 2021-10-05 Created:2021-10-01 By:Kristine Lawler (klawler@cityofukiah.com) Status:Signed Transaction ID:CBJCHBCAABAAK8OPXtzUl0zbhD4i3bLMlI7vff6FFqLS "Chan, Judy - Lease Agmt 185 Mason 2122-086" History Document created by Kristine Lawler (klawler@cityofukiah.com) 2021-10-01 - 3:34:46 PM GMT- IP address: 12.12.163.2 Document emailed to Sage Sangiacomo (ssangiacomo@cityofukiah.com) for signature 2021-10-01 - 3:35:15 PM GMT Document e-signed by Sage Sangiacomo (ssangiacomo@cityofukiah.com) Signature Date: 2021-10-05 - 0:05:00 AM GMT - Time Source: server- IP address: 12.12.163.2 Agreement completed. 2021-10-05 - 0:05:00 AM GMT