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HomeMy WebLinkAboutReso 94-169 - Approve & Authorize the Mayor to execute the consent to assignment of Lease of office STE B in Bldg C at Diestlehorst Landing office Park from Shasta Region Big Bros/Sis Inc to Shasta County Child Abuse Prev I ' ' RESOLUTION NO. /�f A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE THE CONSENT TO ASSIGNMENT OF LEASE OF OFFICE SUITE B IN BUILDING C AT DIESTLEHORST LANDING OFFICE PARK FROM THE SHASTA REGION BIG BROTHERS/BIG SISTERS, INC. TO THE SHASTA COUNTY CHILD ABUSE PREVENTION COORDINATING COUNCIL. i /T /S HEREBY RESOLVED that the City Council of the City of Redding hereby approves the above-mentioned Assignment of Lease, to be effective midnight, June 30, 1994. BE /T FURTHER RESOLVED that the Mayor of the City of Redding is hereby authorized and directed to sign the City's Consent to said Assignment in the form attached hereto and incorporated herein by reference; and the City Clerk is hereby authorized and directed to attest the signature of the Mayor and to impress the official seal of the City of Redding thereto. / HEREBY CERT/FY that the foregoing Resolution was introduced and read at a i regular meeting of the City Council of the City of Redding on the 21st day of June, 1994, and was duly adopted at said meeting by the following vote: AYES: COUNCIL MEMBERS P. Anderson, Kehoe, McGeorge,, Murray and R. Anderson NOES: COUNCIL MEMBERS None ABSENT: COUNCIL MEMBERS None ABSTAIN. COUNCIL MEMBERS None R ERT C. ANDER ON, Mayor ATTEST: CONNIE STRbAWAYER, Pty &erk FORM APPROVED: \1 RA ALL A. HAY y Attorney ASSIGNMENT AND ACCEPTANCE OF LEASE The SHASTA REGION BIG BROTHERS/BIG SISTERS, INC., a Nonprofit Corporation, Master Lessee under that certain Lease Agreement from the CITY OF REDDING as Lessor dated September 15, 1992, a true copy of which is attached hereto and made a part hereof; DOES HEREBY ASSIGN all rights, title, and interest in and to said Lease Agreement to the SHASTA COUNTY CHILD ABUSE PREVENTION COORDINATING COUNCIL, effective midnight, June 30, 1994. Effective midnight, June 30, 1994, the SHASTA COUNTY CHILD ABUSE PREVENTION COORDINATING COUNCIL, P.O. Box 494536, Redding, California, 96049, hereby accepts the assignment of the above-mentioned Lease Agreement from the SHASTA REGION BIG BROTHERS/BIG SISTERS, INC., Master Lessee, subject to all of the terms, covenants, conditions, agreements, and promises therein contained on the part of the Master Lessee to be observed and performed, including liability for the remaining obligations under said Lease Agreement and the payment of rents. SHASTA REGION BIG BROTHERS/BIG SISTERS, INC. By: MARJ SIPPEL, Executive Director SHASTA COUNTY CHILD ABUSE PREVENTION COORDINATING COUNCIL By: MARJ SIPPEL, Executive Director STATE OF CALIFORNIA ) ss. COUNTY OF SHASTA ) On this, the day of 19 before me, Teresa E. Acker, the undersigned Notary Public, personally appeared Marj Sippel, personally known to me, or proved to me on the basis of satisfactory evidence to be the person whose names are subscribed to the within instruments, and acknowledged to me that she executed the same in her authorized capacities, and that by her signatures on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. WITNESS my hand and official seal. Notary Public 1 CONSENT TO ASSIGNMENT OF LEASE The CITY OF REDDING, a Municipal Corporation and General Law City, and Lessor under the aforementioned Lease Agreement, hereby consents to the assignment of said Lease Agreement: FROM ASSIGNOR SHASTA REGION BIG BROTHERS/BIG SISTERS, INC. TO ASSIGNEE SHASTA COUNTY CHILD ABUSE PREVENTION COORDINATING COUNCIL effective midnight, June 30, 1994, and to release said Assignor from any future obligation under said Lease Agreement on and after such effective date. CITY OF REDDING ROBERT C. ANDERSON, Mayor ATTEST: CONNIE STROHMAYER, City Clerk FORM APPROVED: RANDALL A. HAYS, City Attorney 4 f DIFSTELHORST LANDING OFFICE PARK , j LAND AND BUILDING LEASE AGREEMENT SHASTA REGION BIG BROTHERSIBIG SISTERS, INC. THIS LEASE AGREEMENT is made and entered into this /_5' day of S E7°T, 1992, by and between the CITY OF REDDING, a Municipal Corporation and General Law City, hereinafter referred to as "Lessor"; SHASTA REGION BIG BROTHERSBIG SISTERS, INC., a Non-profit Corporation, hereinafter referred to as "Master Lessee"; WITNESSETH: WHEREAS, Lessor owns certain land and premises at 2280 Benton Drive, Redding, California (Diestelhorst Landing Office Park), which are not needed for municipal purposes in the immediate future; and WHEREAS, Master Lessee has need for office space to carry on its non-profit charitable activities; NOW, THEREFORE, IT IS AGREED by and between the parties hereto as follows: I. Term. Lessor, for and in consideration of the covenants, conditions, and agreements herein set forth to be kept and performed by Master Lessee does hereby grant, demise, and lease unto Master Lessee, subject to all of the conditions, covenants, terms, and agreements hereinafter set forth, that part of the Diestelhorst Landing Office Park described in Exhibit "A" attached hereto and incorporated herein by reference (hereinafter called "Premises") for a term of twenty-five (25) years commencing on the date an occupancy permit is issued for the building. U. Rent and Other Charges. A. The rent to be paid by Master Lessee to Lessor under this Lease Agreement shall consist of a common area and building repair and maintenance charge which charge is based on the estimated cost to Lessor to provide the following: 1. Maintenance of landscaping, excluding water for leased area. 2. Maintenance by contract or otherwise for heating and air conditioning equipment. 3. Replacement of plants or lawn, as needed. 4. General building maintenance and repairs. 5. Prorata share of external lighting in parking area not attached to the leased building. 6. Prorata share of garbage collection. 7. Reroofing the building every twenty years. 8. Resurfacing the parking lot every twelve years (18 spaces). 9. Replacement of air conditioners or heaters as needed or approximately every ten years. s, i '•:a�=' 1. ;.- ._=�?'_��=' ill I"'I?r 1-"I f I I�1 10.. tWiping of parking areas every three years It. Refurbishment of the project identification sign every ten years. 12. Repainting exterior building trim every three years. 13. Repainting building exterior every eight years. 14. Administrative costs equal to five percent of items 7 - 13. The initial rental rate for the common area and building repair and maintenance charge is 20 cents per square foot. It is anticipated that the Premises will be divided into three separate office spaces with the reception area, bathrooms, conference room, and storage space used in common. The Master Lessee shall be responsible for a share of the rent based upon the actual square footage of the Premises which is occupied by Master Lessee, plus a prorata share of the square footage of the common area. The following is the breakdown of the square footage of the office area and the prorated share of the common area for the i Master Lessee: Master Lessee (Big Brothers/Big Sisters or successors) 669 square feet of 'I office space plus 229 square feet of the common area. Total square footage = 898 In addition to the monthly rent to be paid by all occupants of the Premises, an adminis- trative charge equal to 5.5% of the total common area and building and maintenance charge will be shared by occupants of the Premises. . In consideration of the covenants, conditions, and agreements herein set forth to be kept and performed by Master Lessee, Master Lessee is exempt from paying a portion of the administrative charge. Based upon an anticipated building area of 3887 square feet and an administrative charge of approximately 5.5% of the common area and building and maintenance charge, the initial monthly rent to be paid by the occupants of the Premises will be Eight-Hundred Twenty-One Dollars ($821.00) as follows: Master Lessee (Big Brothers/Big Sisters) - One Hundred Eighty Dollars ($180.00) Grant and Resource Center of Northern California, or successors - $335.00; Shasta Area American Red Cross, or successors - $306.00. B. Master Lessee hereby agrees to collect from the other occupants of the Premises their share of the rent according to the Schedule contained in Section II.A. Master Lessee agrees to forward the full rent amount, in a single payment, to the Lessor. Said rent shall be payable in advance on the first day of each and every month during the term of this Lease Agreement. C. The estimated annualized cost for items 1 - 6 of paragraph II.A above shall be adjusted annually, based on bids for work, actual costs incurred over the previous twelve-month period, and/or uniform garbage collection and City of Redding Electric Utility rates. D. By entering intb this Lease Agreement, Master Lessee understands that Lessor has - 2 - 9212 2392 budgeted Three`�rlundred Sixty-One Thousand and 00/lAollars ($361,000.00) for construction of the building and Twenty-Six Thousand and 00/100 Dollars ($26,000.00) j for installation of landscaping on the leased area. Provided, however, that the parties hereto acknowledge that Lessor is solely responsible for the construction of the leased Premises, and except as hereinafter set forth regarding the interior appointments, Master Lessee shall not be responsible for any cost overruns. Lessor and Master Lessee agree to cooperate to design the building so as to accommodate Master Lessee's specific needs and to make the building energy efficient to the extent reasonably practical. It is further understood that all interior appointments (except for carpeting, painting of interior walls, installation of toilets, wash basins, doors, and standard lighting fixtures, which are covered in the construction budget), specifically, blinds or drapes, special lights, or special wall coverings either in the separate office areas or in the common area, shall be the responsibility of Master Lessee and the other occupants of the Premises by mutual consent. E. Rent and other charges called for in this Lease Agreement shall be payable monthly, in advance. Lessor is entitled to collect from Master Lessee and Master Lessee agrees to pay to Lessor, upon invoice, any rentals, fees, and charges set forth herein. Any rentals, fees, and charges more than thirty (30) days past due shall be subject to a service charge of one and one-half percent (11/2%) per month, based on an annual rate of eighteen percent (18%). Provided, however, that the parties hereto acknowledge that any late charge shall be made only upon that portion of the rent for which Master Lessee is solely responsible, as defined in Section II.A of this Lease Agreement. Without prejudice to any other remedy which otherwise might be used for non-payment of rent, fees, and charges, or other breach of this Lease Agreement, if Lessor is required or elects to pay any sum or sums or incurs any obligations or expense by reason of a failure, neglect, or refusal of Master Lessee to perform any one or more of the terms, conditions, and covenants of this Lease Agreement, or as the result of any act or omission of Master Lessee contrary to said terms, conditions, or covenants, the sum or sums so paid by Lessor, including all interest, costs, damages, or penalties, may be added, after thirty (30) days' written notice by Lessor to Master Lessee, to any installment or rent thereafter due hereunder, and each and every day thereafter the same shall be and become additional rent recoverable by Lessor in the same manner and with like remedies as though it were originally a part of the rent as set forth hereinabove. M. Utifide Master Lessee shall pay the costs for any utility services that are furnished to Master Lessee at said Premises, within Master Lessee's individual office space, expressly including, but not limited to, sewer, water, electricity, natural gas, telephone, and cable television. In addition, Master Lessee and the other occupants of the Premises shall share the costs for any utility services that are furnished at said Premises within the common areas expressly including, but not limited to, sewer, water, electricity, natural gas, telephone, and cable television. Included in the common area charges shall be the provision for water and electricity needed for the maintenance of the landscaping of the lease area, and for exterior lights on the building or in the lease area used to accent the building at night. The Master Lessee hereby agrees to assume primary responsibility for the payment of the - 3 - common arletility charges and will secure utility servo in its name for this area. Master Lessee shall collect reimbursement for the common area utility charges from the other occupants of the Premises according to the following schedule: •i Master Lessee (Big Bros/Big Sis) - 23% of common area utility charges. Red Cross - 37% of common area utility charges. Grant Center - 40% of common area utility charges. The above schedule does not preclude Master Lessee and other occupants of the Premises from reaching an alternative mutually agreeable arrangement for payment of the common area utility charges. IV. Taxes. A. Master Lessee shall pay promptly any taxes assessed against its personal property, and any possessory interest tax levied by reason of their occupancy of the subject Premises and the improvements constructed thereon. B. Master Lessee covenants and agrees to pay any and all taxes which may be levied and assessed against the leased Premises, in addition to the rental payments herein provided. Lessor represents that the subject property is currently exempt from taxation, though it is unclear as to whether such exemption will continue in the future. Provided, however, that Master Lessee shall not be liable for increases in real property taxes that result from changes in ownership of the Premises. For the purposes of this Lease Agreement, "change in ownership" has the same definition as in California Revenue and Taxation Code sections 60-62, or any amendments or successor statutes to those sections. Lessor shall not resist any challenge of nor appeal of property tax assessments or valuations. Any property taxes payable for the current year shall be prorated as of the date on which this Lease Agreement term commences. V. Use of Premises. The Premises shall be used by Master Lessee for the normal and customary charitable and non-profit activities of Master Lessee and for no other purpose. Specifically, no political and/or religious activities or uses shall be permitted on the leased Premises. In addition, no overnight lodging for any reason whatsoever shall be permitted on the leased Premises. In connection with the normal and customary non-profit activities of Master Lessee, it is covenanted and agreed that Master Lessee confine its use during the term of this Lease Agree- ment to the daylight hours of Monday through Friday of each week, one evening per week and one Saturday per month, although other occasional evening or weekend use shall not constitute a breach of this Lease Agreement. It is the intent of this Lease Agreement that the usage of the leased Premises shall be confined to office functions only, and shall not include entertainment, lodging, retail, food, or beverage services, even if such activities are a customary activity of Master Lessee. No activities shall be conducted or carried on within the demised Premises in violation of any ordinance, law, statute, bylaw, order, or rule of any governmental agency having jurisdiction - 4 - 9212 2392 0036 000e I thereover. • • VI. -lice pf Conference Room Storage Space and Entry Area. A. The entry area (lobby) is not to be used as an extension of Master Lessee's office space. The area shall be kept clear in order to allow unobstructed passage to each Lessee's office, or the common area or restrooms. Any decorations shall be mutually agreed upon by all Lessees. B. Storage areas shall not be used for the storage of toxic, hazardous, or explosive materials. C. Use of the common conference room shall be through the Master Lessee based on the following schedule: Master Lessee (Big Brothers/Big Sisters) - one week day per week plus 12 weekends per year; Grant Center - two week days each week plus 20 weekends per year; and Red Cross - two week days each week plus 20 weekends per year. The above usage schedule does not preclude occupants of the Premises from reaching an alternative mutually agreeable schedule. Any schedule that is adopted shall be as fair as possible to each occupant by alternating usage days from week to week. Use of the conference room by others for meetings not exceeding 62 persons shall be permitted if the Lessee who would otherwise use that day or evening is in agreement and only on a day-today basis. Any revenues from such usage shall be held by Master Lessee for replacement of carpeting, bathroom fixtures, wall repainting, utility payment of common areas, and other improvements of the commoq area or landscape area of the building. Under no circumstances shall the conference room be used for political or religious purposes nor made available to groups that discriminate by virtue of race, color, creed, religion, sex, age or national origin. Nor shall such usage violate any of the terms of this Lease Agreement. C. Master Lessee shall be responsible for all interior maintenance of the building, including janitorial work, painting, window replacement if and when necessary, other minor repairs to the interior, and all maintenance and repair of Master Lessee's own fixtures and furnishings. D. Master Lessee shall maintain any electrical appliances required or desired by Master Lessee in the use of said Premises. E. Master Lessee shall arrange for janitorial services to maintain the interior of said Premises in a neat and clean condition at all times. Payment for said janitorial services shall be shared in a mutually satisfactory manner between Master Lessee and the other occupants of the Premises based upon the same formula as payment for utilities in Section III of this Lease Agreement. F. No outdoor storage shall be permitted on the leased Premises, nor is the keeping of animals permitted. XI. Improvements: Alterations. A. Master Lessee shall not make or permit anyone to make any alterations, decorations, additions, or improvements, structural or otherwise, in or to the Premises or the building without the prior written consent of Lessor, which shall not be unreasonably withheld. When granting its consent, Lessor may impose any conditions it deems appropriate, including, without limitation, the approval of plans and specifications and obtaining of specified insurance. As a condition precedent to such written consent of Lessor, Master Lessee agrees to obtain and deliver to Lessor written and unconditional waivers of mechanics' and materialmen's liens upon the land and building, of which the Premises are a part, for all work, labor, and services to be performed and materials to be furn- ished by them in connection with such work, signed by all contractors, subcontractors, materialmen, and laborers to be involved in such work. If, notwithstanding the foregoing, any mechanics' or materialmen's lien is filed against the Premises, the building, and/or the land for which work is claimed to have been done or materials claimed to have been furnished to Master Lessee, such lien shall be discharged by Master Lessee within thirty (30) days thereafter, at Master Lessee sole cost and expense, by the payment thereof or by filing any bond required by law. If Master Lessee shall fail to discharge any such mechanics' or materialmen's lien, Lessor may, at its option, discharge the same and treat the cost thereof as additional rent payable with the monthly installment of rent next becoming due; it being hereby expressly covenanted and agreed that such discharge by Lessor shall not be deemed to waive or release the default of Master Lessee in not discharging the same. It is understood and agreed by Lessor and Master Lessee that any alterations, exterior decorations, additions, or improvements shall be constructed on behalf of Master Lessee; and that in the event Lessor gives its written consent to Master Lessee making any such alterations, exterior decorations, additions, or improvements, such written consent shall not be deemed to be an agreement or consent by Lessor to subject Lessor's interest in the Premises, the building, or the land to any mechanics' or materialmen's liens which may be filed in respect to any such work done by or on behalf of Master Lessee. - 7- *9212 2392 01036 0007 XIV. Hold Harmless:'Insurance. A. This Lease Agreement is granted upon the express condition that Lessor, its officers, agents, and employees, shall be free from any and all liability and claims for damages for personal injury, death, or property damage in any way connected with Master Lessee's use of the Premises hereunder leased, including claims of Master Lessee, it's officers, agents, employees, members, or invitees. Master Lessee shall indemnify and save harmless Lessor, its officers, agents and employees, from any and all liability, loss, cost, or obligation on account of or arising out of any such injury, death, or loss caused by the negligence or other legal fault of Master Lessee or its officers, agents, employees, members, or invitees. B. It is specifically understood and agreed as a condition of this Lease Agreement that Master Lessee shall procure and maintain from a company authorized to do business in the State of California, at Master Lessee's sole cost and expense and at all times during the term of this Lease Agreement, a policy of commercial general liability insurance in the amount of One Million and 00/100 Dollars ($1,000,000.00) combined single limits. Said insurance shall be in form and content sufficient and adequate to save Lessor, its officers, agents, and employees, harmless from any and all claims arising out of the use and occupancy of said Premises. A Certificate evidencing such insurance shall be approved by the Risk Manager of Lessor and filed with him, naming Lessor, its officers, agents, and employees, as additional insureds and guaranteeing at least ten (10) days' advance notice to Lessor, in writing, before any cancellation or reduction of such insurance coverage. Insurance requirements will be reevaluated every year; provided that Master Lessee shall only be required to maintain a reasonable amount of insurance consistent with the insurance requirements set forth above but in no event less than $1 million per occurrence. C. In addition, Master Lessee shall procure and maintain from any company authorized to do business in the State of California, at Master Lessee's sole cost and expense and at all times during the term of this Lease Agreement, a policy of property insurance covering all risks of loss to any tenant improvement or betterment at full replacement cost with no co-insurance penalty provision, with the City of Redding named as loss payee. Master Lessee shall furnish to the Risk Manager of Lessor, to be approved by him prior to the commencement of the term hereof, a Certificate of Insurance showing that this insurance coverage is in effect. The Certificate shall guarantee Lessor at least ten (10) days' written notice of cancellation or reduction in coverage. XVIII. Waiver. i No delay or failure by any party to exercise any right, power, or remedy with regard to any breach or default by such party under this Lease Agreement, or to insist upon strict performance of any of the provisions hereof, shall impair any right, power, or remedy of such party, and shall not be construed to be a waiver of any breach or default of the same or any other provision of this Lease Agreement. The waiver by Lessor of any breach or default of any term, covenant, or condition herein contained shall not be deemed to be a waiver of such term, covenant, or condition, or any subsequent breach of the same, or any other term, covenant, or condition herein contained. XIX. De ault. If Master Lessee shall be in arrears in the payment of rent for thirty (30) days or more, or if the transfer or assignment, voluntarily or involuntarily, of this Lease Agreement or any interest therein is attempted, except as herein provided, or if Master Lessee violates or neglects or fails to keep, observe, and perform any of the covenants, promises, or conditions herein contained which are on their part to be kept, observed, and performed, Lessor may, at its election, give the defaulting party written notice of such default. If such default shall continue for sixty (60) days, and the noticed party has failed to commence good faith efforts to cure such default within said period, Lessor shall have the right at any time thereafter and while such neglect or default continues to enter into or upon said Premises, or any part thereof, and repossess the same, including all buildings and improvements thereon, and expel the defaulting party and those claiming under the defaulting party, and remove their effects, forcibly if necessary, without prejudice to any remedies which might otherwise be invoked by Lessor. XX. Eminent Domain. In the event the entire Premises shall be appropriated or taken under the power of eminent domain by any public or quasi-public authority, this Lease Agreement shall terminate and expire as of the date of such taking, and Master Lessee shall thereupon be released from any liability thereafter accruing hereunder. In the event a portion of the Premises is taken under the power of eminent domain by any public or quasi-public authority, such that the improvements thereon cannot, in Master Lessee's opinion, be used for its intended purposes, Master Lessee shall have the right to terminate this Lease Agreement as of the date Master Lessee is required to vacate a portion of the Premises, upon the giving of notice in writing of such election within thirty (30) days after said Premises have been so appropriated or taken. In the event of such termination, both Lessor and Master Lessee shall thereupon be released from any liability thereafter accruing hereunder. Lessor agrees, immediately after learning of any appropriation or taking, to give Master Lessee notice thereof in writing. If the Premises are taken, or Master Lessee elects to terminate upon a partial taking, Lessor agrees to offer to lease to Master Lessee similar space on similar terms for a term equal to the remaining term hereunder, if any such land is available for lease at the Diestelhorst Landing Office Park. XXV. m' r r. i Whenever Master Lessee is required to secure the approval or consent of Lessor under this / Lease Agreement, "Lessor" shall mean the City Manager of the City of Redding. However, at the option of any of the parties to the Lease Agreement, any such questions may be referred to the City Council of the City of Redding, whose decision thereon shall be final. XXVI. Entire Agreement. This Lease Agreement sets forth the entire agreement between the parties hereto. Modifications or additions to this Lease Agreement shall be considered valid only when mutually agreed upon by the parties in writing. XXVII. Invalid Provisions. In the event any covenant, condition, or provision herein contained is held invalid by any Court of competent jurisdiction, the invalidity of the same shall in no way affect any other covenant, condition, or provision herein contained, provided that the validity of any such covenant, condition, or provision does not materially prejudice either Lessor or Master Lessee in their respective rights and obligations contained in the valid covenants, conditions, and provisions of this Lease Agreement. XXVIII. Notice. Any notices or demands that may be given by any party hereunder, including notice of default and notice of termination, shall be deemed to have been fully and properly given when made in writing, enclosed in a sealed envelope, and deposited in the United States Post Office with postage prepaid, certified mail, addressed as follows: To Lessor c/o City Manager, City Hall, 760 Parkview Avenue, Redding, California 96001-3396; and to Master Lessee c/o Shasta Region Big Brothers/Big Sisters, Inc., 2280 Benton Drive, Building C, Suite B, Redding, California 96001. XX1X. Attoma's Fees. In case suit or action is instituted to enforce any of the provisions of this Lease Agreement, the prevailing party therein shall be entitled to attorney's fees and other sums as may be adjudged reasonable and necessary at trial and on appeal. XXX. Binding on Successors. All terms, covenants, and conditions herein contained shall extend to and bind the successors and assigns of the respective parties hereto. XXXI. Time of Essence. Time is of the essence of this Lease Agreement and of each and every provision thereof. - 13 - EXHIBIT "A" TO I DIESTELHORST LANDING OFFICE PARK LAND AND BUILDING LEASE AGREEMENT FOR SHASTA REGION BIG BROTHERS/BIG SISTERS, INC. Parcel 7 as shown on Parcel Map No. LS-12-89 for the City of Redding dated March 14, 1989. sem: ( • �� 4 � � •-�t �;e. IS„:.r• W j ka q .p t ' i i Y. P. 9212 2392 0036 0015