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HomeMy WebLinkAboutReso 93-129 - Approve Redding Municipal Airport Restaurant Lease agreement between COR and Peter Chu RESOLUTION NO. '! A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING THE REDDING MUNICIPAL AIRPORT RESTAURANT LEASE AGREEMENT BETWEEN THE CITY OF REDDING AND PETER CHU, AND AUTHORIZING THE MAYOR TO SIGN. IT IS HEREBY RESOLVED that the City Council of the City of Redding hereby approves the Redding Municipal Airport Restaurant Lease Agreement between the City of Redding and Peter Chu, a true copy of which is attached hereto and incorporated herein by reference. BE IT FURTHER RESOLVED that the Mayor of the City of Redding is hereby authorized and directed to sign said Redding Municipal Airport Restaurant Lease Agreement on behalf of the City of Redding; 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. I HEREBY CERTIFY that the foregoing Resolution was intro- duced and read at a regular meeting of the City Council of the City of Redding on the 20th day of April , 1993, and was duly adopted at said meeting by the following vote: AYES : COUNCIL MEMBERS : Anderson, K , .Mass ss NOES : COUNCIL MEMBERS : None ABSENT: COUNCIL MEMBERS : Dahl ABSTAIN: COUNCIL MEMBERS : None Mayor City of Redding ATTEST: FORM APPROVED: CONNIE STRO MAYER, City Clerk RA ALL A. H Y , City Attorney \ �Z r C I TY OF RE DD I NG RE DD T NG MUM T C T PA RE STAURAMT LEAS E ACRE EME MT i PETER CHU ,I ;i d ;I DCR\vkm\4-9-93 i lig � ! • I 'I REDD = NG MUN I C = PAL A= RPORT RESTAURANT LEASE ACRE EMENT PARAGRAPH DESCRIPTION PAGE 1. DESCRIPTION OF PREMISES . . . . . . . . . . . . . . . . . . 1 2 . FIXED EQUIPMENT . . . . . . . . . . . . . . . . . . . . . . 1 3. TERM. . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 4. USE OF PREMISES . . . . . . . . . . . . . . . . . . . . . . 3 5. SERVICING BY VENDORS. . . . . . . . . . . . . . . . . . . . 4 6 . STANDARDS OF OPERATION. . . . . . . . . . . . . . . . . . . 4 7. HOURS OF OPERATION. . . . . . . . . . . . . . . . . . . . . 5 8. RENT. . . . . . . . . . . • . • . • . . . • . . . . . . . . 5 9 . PERFORMANCE BOND. . . . . . . . . . . . . . . . . . . . 12 10. HEALTH STANDARDS AND FACILITIES' CLEANLINESS. . . . . . . . 13 11. EQUIPMENT . . . . . . . . . . . . . . . . . . . . . . . . . 13 12 UTILITIES; MAINTENANCE. . . . . . . . . . . . . . . . . . . 14 13 ALTERATIONS AND ADDITIONS . . . . . . . . . . . . . . . . . 14 14. SIGNS . . . . . . . . . . . . . . . . . . . . . . . . . 14 15. ALCOHOLIC BEVERAGE STORAGE ROOM . . . . . . . . . . . . 14 16 . ACCEPTANCE OF PREMISES "AS IS" - SURRENDER AT END OF TERM 15 17 . COMPLIANCE WITH LAW . . . . . . . . . . . . . . . . . . . . 15 18. WASTE; QUIET CONDUCT. . . . . . . . . . . . . . . . . . . . 16 19 HOLD HARMLESS; INSURANCE. . . . . . . . . . . . . . . . . . 16 20. ASSIGNMENT OR SUBLETTING. . . . . . . . . . . . . . . . . . 19 21 . INSPECTION. . . . . . . . . . . . . . . . . . . . . . . . . 19 22 . CANCELLATION. . . . . . . . . . . . . . . . . . . . . . . . 20 23 . BANKRUPTCY AND INSOLVENCY . . . . . . . . . . . . . . . . . 20 24. UNITED STATES OF AMERICA RESTRICTIONS . . . . . . . . . . . 20 25. FAA REQUIREMENTS. . . . . . . . . . . . . . . . . . . . . . 21 26 . LESSOR ADMINISTRATION . . . . . . . . . . . . . . . . . . . 24 27. ENTIRE AGREEMENT. . . . . . . . . . . . . . . . . . . . . . 25 28. INVALID PROVISIONS. . . . . . . . . . . . . . . . . . . . . 25 29 . MECHANICS' LIENS. . . . . . . . . . . . . . . . . . . . . . 25 30. NOTICE. . . . . . . . . . . . . . . . . . . . . . . . . . . 25 31 . ATTORNEY'S FEES . . . . . . . . . . . . . . . . . . . 26 32 . BINDING ON SUCCESSORS . . . . . . . . . . . . . . . . . . . 26 33. TIME OF ESSENCE . . . . . . . . . . . . . . . . . . . . . . 26 34. DISCRIMINATION. . . . . . . . . . . . . . . . . . . . . . . 26 35. TAXES . . . . . • . . . . . . . . . . . . . . . . . . . 27 36 . CEQA. . . . . . . . . . . . . . . • • . . . . . . . . . . . 27 EXHIBITS EXHIBIT "A" - Lease Hold Premises EXHIBIT "B" - Fixed Kitchen/Cocktail Lounge Equipment RE DD=NG MUN=C I PAL A= RP O RT RESTAURANT L EAS E ACRE E ME NT THIS LEASE is made and entered into this 1st day of May, 1993 by and between the CITY OF REDDING, a Municipal Corporation and General Law City, hereinafter referred to as "LESSOR, " and PETER CHU, hereinafter referred to as "LESSEE" : W I T N E S S E T H: IT IS MUTUALLY AGREED by and between the parties hereto as follows : 1 . DESCRIPTION OF PREMISES . A. LESSOR hereby leases to LESSEE and LESSEE hires from LESSOR, on the terms, covenants and conditions hereinaf- ter set forth, those certain premises situate in the City of Redding, County of Shasta and State of Califor- nia, more particularly described as follows : The upstairs restaurant and cocktail lounge areas of the Redding Municipal Airport Terminal Building, as more particularly shown on the diagram attached hereto as Exhibit "A" and in- corporated herein by reference, together with the improvements installed in said areas and access to the public areas adjacent thereto, hereinafter referred to as "Premises, " all of which are located at 6751 Woodrum Circle, Suite No. 210, Redding, California 96002 . 2 . FIXED EQUIPMENT. A. Exhibit "B" attached hereto and incorporated herein by reference represents those items of fixed Premises equipment existing at the time of execution of this Lease. Vii.. • • 'I `I B. All items represented in Exhibit "B" may be used by LESSEE at no extra charge. C. LESSEE accepts the items represented in Exhibit "B" as is . D. LESSEE shall be responsible for the maintenance and repair of all items represented in Exhibit "B. " E . At termination of the Lease, LESSEE shall return all items represented in Exhibit "B" to LESSOR in the same condition as when received, reasonable use and wear and tear thereof excepted and damage by fire, Act of God, or by the elements excepted. F. LESSEE may remove any item represented in Exhibit "B" from the Premises providing any such item shall be returned and reinstalled in Premises upon termination of the Lease. Prior to removal, any items LESSEE would intend to remove from the Premises shall first be pre- sented in writing to LESSOR' s Director of Airports for approval . The provisions of Paragraph 2 . E . above shall still apply. G. If , at any time during the Term of this Lease or any extension thereof, LESSEE determines any item represent- ed in Exhibit "B" has become inoperable, unrepairable or obsolete, and LESSEE desires to replace such item, then such replacement item shall become a part of and be included with the LESSOR-owned fixed equipment as repre- sented in Exhibit "B. " H. If, at any time during the Term of this Lease or any extension thereof, LESSEE adds trade fixtures , or adds equipment or furnishings to the Premises other than that represented in Exhibit "B, " then such added trade fixtures , equipment or furnishings shall remain the property of the LESSEE and may be removed from the -2- Ii i Premises , without damage to the Premises , when this II Lease is terminated. 3 . TERM. A. The Term of this Lease shall be five ( 5 ) years, commenc- ing May 1, 1993, and terminating April 30, 1998. B. Based upon performance throughout this initial five ( 5 ) year Term of this Lease which is acceptable to LESSOR, LESSEE shall have the option of renewing this Lease for two successive terms . The first option term shall be two and one-half ( 21 ) years from May 1, 1998 through October 31, 2000 . The second option term shall be two and one-half ( 21 ) years from November 1, 2000 through April 30, 2003 . LESSEE shall give LESSOR a minimum of one hundred eighty ( 180 ) days advance written notice of LESSEE' s exercise of the option to renew for the first option term of two and one-half ( 22 ) years , and a mini- mum of one hundred eighty ( 180 ) days advance notice of LESSEE' s exercise of the option to renew for the second option term of two and one-half ( 2Z ) years . 4 . USE OF PREMISES . A. The Premises are leased to LESSEE for the purpose of conducting and operating thereon a restaurant and cock- tail lounge for the use by patrons of the Redding Munic- ipal Airport, and the public-at-large. LESSEE shall be permitted live entertainment in accordance with para- graph 18 herein. E. LESSEE may also install and maintain vending machines within the Premises as part of the operation. LESSEE shall be privileged to install such machines subject first to securing approval of the LESSOR' s Director of -3- I II I' I Airports , whose approval shall not be unreasonably withheld. C. No other use of Premises is granted under this Lease. Any additional use of Premises by LESSEE shall first require advanced written approval by LESSOR. li 5 . SERVICING BY VENDORS . I LESSEE will not use the main terminal passenger elevator for delivery of daily goods , but will restrict such deliveries to the delivery access entrance to the kitchen, where a conveyor belt is located. 6 . STANDARDS OF OPERATION. A. It is understood and agreed that the restaurant and '! cocktail lounge shall be of high quality. The determi- nation of whether or not the above level of operation is maintained may be made by the LESSOR. Failure to main- tain a high quality level of operation and service shall be grounds for cancellation of this Lease. B. In addition to its normal menu( s) , LESSEE shall provide, at a minimum, the following: 1) Breakfast time: Coffee, hot tea, juice, danish pastries . 2 ) Lunch time: Some sandwich-type fare. C. LESSEE shall provide, at a minimum, beer and wine ser- i vice . D. LESSEE shall maintain, at all times , a standard: of conduct for their employees that shall include but not I be limited to the following: 1 ) No public display of personal grievances . 'I i i I -4- 1 ' I� 2 ) Drinking of any alcoholic beverages of any kind will I, not be permitted by employees while on duty; only i when out of uniform and as a customer. 3 ) Employees must be well-groomed at all times and, in general , maintain a pleasant attitude toward the public . 7 . HOURS OF OPERATION. A. LESSEE shall operate the restaurant and cocktail lounge seven ( 7 ) days ' per week. LESSEE will be allowed to serve the public anytime from the hours of 5 : 00 A.M. to 1 : 00 A.M. B. LESSEE shall be open to serve the travelling public during at least the following hours : ( i ) Breakfast: 6 : 00 A.M. - 9 : 30 A.M. ( ii ) Lunch: 11 : 00 A.M. - 2 : 00 P.M. ( iii) Dinner: 5 : 00 P .M. - 9 : 00 P.M. ( iv) Lounge/Bar: 11 : 00 A.M. - 9 : 00 P .M. C . The specific hours of operation may be negotiated be- tween LESSEE and LESSOR' s Director of Airports at any time during the Term of this Lease or any extension thereof . 8 . RENT. A. LESSEE shall not be charged Rent for the initial ninety ( 90 ) day period following execution of this Lease in order to accommodate LESSEE' s remodeling and start-up of operations . B. For use of the Premises , facilities , equipment, servic- es , rights and privileges granted by this Lease, LESSEE hereby agrees to pay to LESSOR a monthly rent, including all utilities except natural gas or propane, calculated as follows : -5- 1) Commencing August 1 , 1993, and for the remainder of the initial two and one-half (22 ) year period of the Term May 1 , 1993 through October 31 , 1995 , a monthly rent equal to the sum of ( i) , (ii) , ( iii) , ( iv) and (v) below as follows : (i) $1,250 .00 for the amount of Gross Receipts up to and including $45,500 .00 per month; PLUS ( ii) Two and two-tenths percent (2 .20) of the amount of Gross Receipts over $45 ,500 .00 up to and including $50,000 .00 per month; PLUS ( iii) Three percent 3 .0% of the amount of Gross Receipts over $50,000 .00 up to and including $60,000 . 00 per month; PLUS ( iv) Three and one-half percent ( 31%) of the amount of Gross Receipts over $60,000 .00 up to and including $70,000 .00 per month; PLUS (v) Four percent (40) of the amount of Gross Receipts over $70,000 . 00 per month; Note 1 : LESSEE is hereby given the option to pay a minimum ,I monthly rent of $1,000 .00 for the twelve ( 12) month period beginning August 1, 1993 . Should LESSEE chose to do so, then the minimum monthly rent from August 1 , 1994 'i through October 31, 1995 shall be $1,450 . 00 . Note 2 : Should LESSEE elect to pay the cost of conversion and installation of propane (reference paragraph 11 .B. -6- !I �i below) , LESSEE may present to LESSOR receipts evidencing the total cost of said conversion and installation '! whereupon LESSOR shall reimburse LESSEE for such total cost through twelve ( 12) equal monthly deductions from the above stated twelve ( 12) month rental schedule beginning August 1 , 1993 . ,i 2) For the second two and one-half (2z ) year period of 'I the Term from November 1, 1995 through April 30, 1998, a monthly rent equal to the sum of ( i) , ( ii) , ( iii) , (iv) and (v) below as follows : 'I ( i) $1,500 .00 for the amount of Gross Receipts up to and including $45,500 .00 per month; PLUS ( ii) Three percent ( 3 .0%) of the amount of Gross Receipts over $45,500 . 00 up 'I to and including $50,000 .00 per month; PLUS ( iii) Three and one-half percent ( 31%) of the amount of Gross Receipts over $50,000 .00 up to and including $60,000 .00 per month; PLUS ( iv) Four percent (4%) of the amount of Gross Receipts over $60,000 .00 up to and including $70,000 .00 per month; PLUS (v) Five percent ( 5%) of the amount of Gross Receipts over $70,000 .00 per month; I i i i -7- !I 'I 3) For the first two and one-half (22 ) year option Term from May 1, 1998 through October 31 , 2000, a monthly rent equal to the sum of (i) , ( ii) , (iii) , (iv) and (v) below as follows : ( i) $1,750 .00 for the amount of Gross Receipts up to and including $45 ,500 .00 per month; PLUS I (ii) Three and one-half percent ( 32%) of the amount of Gross Receipts over $45 ,500 .00 up to and including $50,000 .00 per month; PLUS ( iii) Four percent (4%) of the amount of Gross Receipts over $50,000 .00 up to and including $60,000 .00 per month; PLUS ( iv) Four and one-half percent (420) of the amount of Gross Receipts over $60,000 . 00 up to and including $70,000 .00 per month; PLUS (v) Five and one-half percent (51%) of the amount of Gross Receipts over $70,000 .00 per month; i i 'i .i :I 4) For the second two and one-half (2Z ) year option Term from November 1, 2000 through April 30, 2003 , a monthly rent equal to the sum of ( i) , ( ii) , (iii) , (iv) and (v) below as follows : ( i) $2 ,000 .00 for the amount of Gross Receipts up to and including $45,500 .00 per month; PLUS ( ii) Four percent (4%) of the amount of Gross Receipts over $45,500 .00 up to and including $50,000 .00 per month; J PLUS ( iii) Four and one-half percent (42%) of the amount of Gross Receipts over $50,000 .00 up to and including $60,000 .00 per month; PLUS ( iv) Five percent (5%) of the amount of Gross Receipts over $60,000 .00 up to and including $70,000 .00 per month; PLUS i (v) Six percent ( 6%) of the amount of Gross Receipts over $70,000 .00 per month; C . Gross Receipts shall be understood to mean the total amount, excluding sales tax and gratuities , which is received by or which accrues to LESSEE in cash or credit and other considerations from all operations of LESSEE at the leased Premises . II j i .I -9- d it D. Payments : 1) LESSEE' s payments for the monthly Rent will be paid LESSOR within ten ( 10) calendar days following the end of each month. Such payments shall be accompa- nied by statements from LESSEE showing detailed receipts . 2 ) Said statements shall be in a form approved by LES- SOR' s Director of Finance. E . LESSEE agrees to keep and maintain records of revenue and expenditures in a manner consistent with generally accepted accounting principles, and will furnish the following to the Finance Director and the Director of Airports of LESSOR: l 1 ) Quarterly: A Balance Sheet and Statement of Income covering the three ( 3) months ending each calendar quarter, due within thirty ( 30 ) days after the end of the period reported on. The provisions of para- graph 22 . shall apply should LESSEE fail to furnish said information. F. It is expressly understood and agreed that LESSOR shall at all times during the Term of this Lease have the right to inspect the books and records of LESSEE at any and all reasonable business hours, upon request. In addition, LESSOR reserves the right to have an audit performed on the operations at the facility at LESSOR' s discretion and at no cost to LESSEE. G. At the end of each year during the Term of this Lease or the extension thereof, LESSOR and LESSEE shall review LESSEE' s annual Gross Receipts for the previous year to ascertain if LESSEE has , indeed, paid the correct amount of annual rent to LESSOR. If a further sum is due -10- I it r li LESSOR, LESSEE will pay the balance owing within ten jl ( 10) calendar days following said year-end review. H. All payments called for in this Lease, including the above rent and other charges, shall be payable within ten ( 10 ) calendar days of the billing date by LESSOR. LESSOR is entitled to collect from LESSEE, and LESSEE agrees to pay to LESSOR, upon invoice, those rentals , fees, and charges set forth herein. Any rentals, fees , and charges more than ten ( 10) days ' past due shall be subject to a service charge of one and one-half percent ( 11%) per month, based on an annual rate of eighteen percent ( 18% ) . 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, if LESSOR is required or elects to pay any sum or sums or incurs any obligations or expense by reason of a fail- ure, neglect, or refusal of LESSEE to perform any one or more of the terms , conditions , and covenants of this 'I Lease, or as the result of any act or omission of 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 seven ( 7 ) days ' written notice by LESSOR to LESSEE, to any �i ,I 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. I i -11- I I i i I 9 . PERFORMANCE BOND; LETTER OF CREDIT. A. Prior to beginning actual remodeling or renovation or operation, and during the Term of this Lease or any extension thereof, LESSEE will post with the City Clerk i of LESSOR a Performance Bond or Letter of Credit in the amount of Ten Thousand Dollars ( $10, 000 . 00) in favor of the City of Redding. For the purpose of this paragraph, this is construed to mean a negotiable instrument issued by a National or State insurance company or bank in a form acceptable to the LESSOR. The negotiable instru- ment will be maintained and renewed as necessary to remain in force throughout the Term of this Lease. Cancellation of the Performance Bond or Letter of Credit for whatever reason shall forthwith terminate this Lease. B. Based upon LESSEE's performance throughout the first two and one-half ( 22 ) year period of the initial five ( 5 ) year Term of this Lease which is acceptable to LESSOR, LESSOR and LESSEE may reevaluate the requirement as set forth in paragraph 9 .A. above. C. A claim will be made by LESSOR against said bond in the event of one of the following: 1 ) Failure on the part of LESSEE to make timely payment of any amounts due LESSOR under the terms and condi- tions of this Lease; 2 ) Any damage to or loss of Municipal Airport property caused by LESSEE; 3 ) Failure to pay utility and other charges , if any; 4 ) Removal and storage expense incurred by LESSOR if LESSEE does not promptly remove his property from j -12- ,i it the Premises within fifteen ( 15 ) calendar days after this Lease is terminated. 5 ) Costs incurred by LESSOR at the time the Lease is terminated if LESSEE fails to leave Premises in satisfactory condition. 10 . HEALTH STANDARDS AND FACILITIES ' CLEANLINESS . A. LESSEE will comply with all established health standards as monitored by the local governmental health depart- ment. B. Within five ( 5) days of any health standards ' inspection by the local governmental health inspector, LESSEE shall provide LESSOR with a copy of the inspection report. C. LESSEE will, during the Term of this Lease or any exten- sion thereof, have an on-going cleaning program for both the public and non-public areas within the Premises . This will require regular cleaning of items such as but not limited to carpets , floors, windows, kitchen equip- ment, vents and service areas . I j 11 . EQUIPMENT. A. It is expressly understood that LESSEE shall install all fixtures , furnishings and equipment that is required to operate said facilities, other than those which exist within the Premises at the time of execution of this Lease. B. LESSEE may elect to pay the cost of converting ; the ! existing electric stove line and two electric hot water I heaters by installing a propane stove line and single electric hot water heater. All such design, conversion and installation shall be coordinated with and approved by LESSOR prior to actual construction. -13- I 12 . UTILITIES; MAINTENANCE. LESSOR shall provide all utilities , except natural gas or propane, and sanitation services to the Premises at no cost to LESSEE. LESSEE shall contract for its own janitorial service for the Premises, including window cleaning inside, at LESSEE' s ex- pense. LESSEE shall provide for regularly scheduled cleaning of the grease trap at. LESSEE' s expense. LESSEE shall be responsible I� for all interior maintenance of the Premises . LESSOR shall be responsible for all exterior building maintenance, including window cleaning outside. 13 . ALTERATIONS AND ADDITIONS . LESSEE shall not make any alterations to or erect any addi- tional structures or improvements on the Premises without prior written consent of LESSOR. Any alterations or additions approved by LESSOR shall be constructed at the sole expense of LESSEE, and shall remain the property of LESSOR at the end of the Term of i this Lease, or any extension thereof . 14 . SIGNS . !� LESSEE shall be privileged to erect such signs as may be i desired and to place same upon the Premises , the lower level of the passenger terminal and upon the exterior of the passenger terminal , subject to first securing the written approval of LESSOR' s Director of Airports . The Director of Airports will consider but not be limited to such criteria as aesthetic harmony „ with airport facilities , specific location, and installation procedures . All signage and installation shall be at sole cost i to LESSEE. 'I 15 . ALCOHOLIC BEVERAGE STORAGE ROOM. LESSOR shall have the option, during the Term of this Lease or any extension thereof, to appropriate the alcoholic beverage -14- 't 'I ,I i storage room space adjacent to the cocktail lounge in order to accommodate future growth of airport administrative space. In the event LESSOR would exercise such option, it will first provide LESSEE with no less than six ( 6 ) months ' advance written notice prior to doing so. 16 . ACCEPTANCE OF PREMISES "AS IS" - SURRENDER AT END OF TERM. LESSEE accepts the Premises as being in good and sanitary order, condition, and repair; and agrees that on the last day of the initial Term hereof or any renewal or extension thereof or sooner termination of this Lease to surrender unto LESSOR all and singular said leased Premises with said appurtenances in the same condition as when received, reasonable use and wear thereof and damage by fire, Act of God, or by the elements excepted; provided however, that LESSEE shall have the right to remove such personal property, and such trade fixtures, equipment or furnishings as specified in 2 .H. above, placed in and upon said Premises by LESSEE which may be removed without damage to the leased Premis- es . 17 . COMPLIANCE WITH LAW. LESSEE shall, at its sole cost and expense, comply with all requirements of Federal , State, and local authorities now in force or which may hereafter be in force pertaining to said Premises and to the operations thereon, and shall faithfully observe in the use of said Premises all Federal, State and local statutes now in force or which may hereafter be in force. The judgment of any Court of competent jurisdiction or the admission of LESSEE in any action or proceeding against LESSEE, whether LESSOR be a party thereto or not, that LESSEE has violated any i such ordinance or statute in the use of the Premises, shall be conclusive of the fact as between LESSOR and LESSEE. -15- it it I� I i 18 . WASTE; QUIET CONDUCT. LESSEE shall not commit or suffer to be committed any waste upon the Premises , nor any nuisances or other act or thing which may disturb the quiet enjoyment of any other occupant or user of 'i adjoining premises owned by LESSOR. LESSEE shall be permitted live entertainment, in good taste, and in compliance with City Ordinances ; however, not to the disturbance of restaurant custom- ers . 19 . HOLD HARMLESS; INSURANCE. LESSEE shall assume all responsibility and liability in connection with its operations under this Lease, and LESSEE assumes and agrees to pay and hold LESSOR, its officials , offi- cers , agents, employees , volunteers and members of the Airports Commission harmless from any responsibility or liability in connection with LESSEE' s use and occupancy of these Premises during the Term of this Lease or any extension thereof, including damages for injuries to persons or property of persons using said i premises . It is specifically understood and agreed as a condition of this Lease that LESSEE shall , at its own expense, obtain and keep 'I in full force and effect Airport General Liability Insurance, covering all Premises operations , and products and completed operations , including contractual liability as respect to this Lease . Limits of coverage shall be no less than One Million Dollars ( $1 , 000 , 000 . 00) per occurrence/Two Million Dollars ( $2 , 000, 000 . 00) aggregate ( if applicable) combined single limits for bodily injury, personal injury, and property damage. Said insurance shall be in form and content sufficient and adequate to save LESSOR, its officials, officers , agents , employees , volun- teers and members of the Airports Commission harmless from any i -16- I I. and all claims arising out of the LESSEE' s operations under this Lease. LESSEE shall also secure and maintain Automobile Liability, at least as broad as Insurance Services Office form number CA0001 (Ed. 1/87 ) , covering all owned, non-owned, and hired commercial vehicles, used on the Airport premises in support of the LESSEE ' s restaurant and cocktail lounge operations , in an amount not less than One Million Dollars ( $1, 000, 000 . 00 ) combined single limits . LESSEE shall also secure and maintain property insurance against all risks of loss to any LESSEE improvements , bettermen- ts , contents , including LESSEE' s furniture, equipment, and inventory, at full replacement value. LESSEE further agrees that in the event of any loss or partial or complete destruction of those LESSEE improvements, betterments , and contents, any pro- ceeds of insurance received by LESSEE shall be utilized in the replacement, reconstruction or repair of the damaged or destroyed improvements , betterments , and contents . In the event of the sale of alcoholic beverages , LESSEE shall secure Liquor Liability Insurance, in an amount not less than One Million Dollars ( $1, 000 , 000 . 00 ) per occurrence. LESSEE shall also maintain statutory Workers ' Compensation Insurance and Employers ' Liability Insurance, with limits of not less than One Million Dollars ( $1, 000 , 000 . 00 ) per occurrence, on all persons employed by it in the operations carried on in the leased Premises . Both the Workers ' Compensation and Employers ' Liability policies shall contain the insurers ' waiver of subroga- tion in favor of LESSOR, its officials , officers , agents , employ- ees , volunteers , and members of the Airports Commission. The Airport General Liability, Automobile Liability, and Liquor Liability Insurance policies are to be endorsed as fol- lows : ol- lows : -17- i 'I A. LESSOR, its officials, officers , agents, employees , volunteers and members of the Airports Commission are to be covered as additional insureds . Such endorsements shall include liability arising out of the premises owned, occupied, or used by LESSEE, and products and completed operations of the LESSEE, and automobiles owned, leased, or borrowed by the LESSEE. The coverage shall contain no special limitations on the scope of protection afforded to LESSOR, its officials , officers, agents, employees volunteers and members of the Airports ;i Commission. B. LESSEE' s insurance coverage shall be primary insurance as respects LESSOR, its officials , officers , agents , em- ployees , volunteers and members of the Airports Commis- sion. Any insurance or self-insurance maintained by LESSOR, its officials, officers, agents , employees , volunteers, and members of the Airports Commission shall be excess of LESSEE's insurance and shall not contribute with it. ,j C . Any failure to comply with reporting or other provisions of the policies , including breaches of warranties , shall I not affect coverage provided to LESSOR, its officials, officers , agents, employees, volunteers and members of the Airports Commission. D. Coverage shall state that 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 insurer' s liability. E . Each insurance policy required by this Lease shall be endorsed to state that coverage shall not be suspended, voided, cancelled, or adversely materially changed in I i -18- i I coverage or in limits except after thirty ( 30) days ' j prior written notice has been given to LESSOR. LESSEE shall furnish LESSOR with certificates of insurance and original endorsements effecting coverage required by this Lease. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf . All endorsements are to be received and approved by the City of Redding before the inception of the Lease. i; 20 . ASSIGNMENT OR SUBLETTING. LESSEE shall not assign this Lease or any interest herein, and shall not sublet said Premises or any part thereof, or any right or privilege appurtenant thereto, or suffer any other j person, agents and employees of LESSEE excepted, to occupy or use said Premises or any portion thereof without the written consent of LESSOR first had and obtained. A consent by LESSOR to one assignment, subletting, occupancy, or use by another party shall not be deemed to be a consent to any subsequent assignment, subletting, occupancy, or use by another person or entity. Any .� such assignment, subletting, occupancy, or use by another person or entity without such consent by LESSOR shall be void and shall , at the option of LESSOR, terminate this Lease. This Lease shall not, nor shall any interest herein, be assignable as to the 0 of law, interest of LESSEE, by operation , without the written u consent of LESSOR. LESSOR agrees that it will not arbitrarily or capriciously withhold its consent required hereunder. 21 . INSPECTION. LESSEE shall permit LESSOR to inspect said Premises and any improvements therein at all reasonable times during the Term of this Lease and any extension thereof . '.i ,I _19_ i i 22 . CANCELLATION. Breach by LESSEE of any of the terms , conditions, and agreements contained in this Lease, or any extension thereof, shall be a basis for cancellation of this Lease, or any extension thereof . LESSOR may, at its option, allow LESSEE, following notice of default under this Lease, a period of thirty ( 30) days to correct the noticed default. 23 . BANKRUPTCY AND INSOLVENCY. If LESSEE shall be adjudged bankrupt, either by voluntary or involuntary proceedings, or if LESSEE shall be the subject of any proceeding to stay the enforcement of obligations against it in the form of reorganization or otherwise under and pursuant to any existing or future laws of the Congress of the United States, or if LESSEE shall discontinue business or fail in business, or abandon or vacate said Premises , or make an assignment for the benefit of creditors , or if said Premises should come into possession and control of any trustee in bankruptcy, or if any receiver should be appointed in any action or proceedings with power to take charge, possession, control or care of said Premis- es , LESSOR shall have the option to forthwith terminate this Lease, or any renewal or extension thereof, and to re-enter the Premises and take possession thereof . In no event shall this Lease be deemed an asset of LESSEE after adjudication in bank- ruptcy. 24 . UNITED STATES OF AMERICA RESTRICTIONS . A. It is understood and agreed that this Lease, insofar as it pertains to the use of the Redding Municipal Airport, is subject to the covenants , restrictions and reserva- tions contained in the following instruments to which the United States of America is a party: -20- 1 I i II 1) Quitclaim Deed dated June 6 , 1947 , to the City of Redding; 2 ) Instrument of Transfer dated October 7 , 1947 , to the City of Redding; and 3 ) Grant Agreements of record executed by the City of Redding in connection with Federal Aid Airport Pro- jects . B. To the extent that the United States of America may '! release said Airport or any part thereof from any of said covenants , restrictions , and reservations, LESSEE shall likewise be released by LESSOR. 'I 25 . FAA REQUIREMENTS . To comply with Federal Aviation Administration requirements , LESSEE, for itself, its heirs , executors , representatives , successors and assigns, as a part of the consideration hereof, does hereby covenant and agree, as material terms of this Lease: A. That in the event facilities are constructed, main- tained, or otherwise operated on the property described in this Lease for the purpose for which a Department of Transport program or activity is extended, or for anoth- er purpose involving the provision of similar services or benefits , LESSEE shall maintain and operate such .i facilities and services in compliance with all other requirements imposed pursuant to Title 49 , Code of Federal Regulations, DOT, Subtitle A, Office of the Secretary, Part 21 , Nondiscrimination in Federally Assisted Programs of the Department of Transportation-- Effectuation of Title VI of the Civil Rights Act of 1964 , and as said Regulations may be amended. B. That ( 1 ) no person on the grounds of race, color, or national origin shall be excluded from participation° in, denied the benefits of, or be otherwise subjected to discrimination in the use of said facilities; ( 2 ) that in the construction of any improvements on, over, or under such lands and the furnishing of services thereon, no person on the grounds of race, color, or national origin shall be excluded from participation in, denied ! the benefits of, or otherwise be subject to discrimi- nation; and ( 3 ) that LESSEE shall use the Premises in �I -21- i compliance with all other requirements imposed by or pursuant to Title 49 Code of Federal Regulations , De- partment of Transportation, Subtitle A, Office of the Secretary, Part 21 , Nondiscrimination in Federally- Assisted Programs of the Department of Transportation-- Effectuation of Title VI of the Civil Rights Act of 1964 , and as said Regulations may be amended. C . That in the event of breach of any of the above non- discrimination covenants , LESSOR shall have the right to terminate this Lease and to re-enter and repossess said Premises and the facilities thereon, and hold the same !; as if said Lease had never been made or issued. This i� provision does not become effective until the procedures of 49 CFR Part 21 are followed and completed, including expiration of appeal rights . D. That LESSEE shall furnish its accommodations and/or services on a fair, equal, and not unjustly discrimina- tory basis to all users thereof, and it shall charge fair, reasonable, and not unjustly discriminatory prices for each unit or service; provided that LESSEE may be allowed to make reasonable and nondiscriminatory dis- counts, rebates, or other similar type of price reduc- tions to volume purchasers . E . That noncompliance with paragraph 25 (D) above shall constitute a material breach thereof; and in the event of noncompliance LESSOR shall have the right to termi- nate this Lease and the estate hereby created without liability therefor, or, at the election of LESSOR or the United States , either or both Governments shall have the right to judicially enforce provisions . F. That LESSEE agrees that it shall insert the above five provisions 25 (A) through 25 (E) in any agreement, contract, etc . , by which said LESSEE grants a right or privilege to any person, firm, or corporation to render accommodations and/or services to the public on the Premises herein. G. That LESSEE assures that it will undertake an affirma- tive action program as required by 14 CFR Part 152 , Subpart E, to ensure that no person shall , on the '! grounds of race, creed, color, national origin, or sex, be excluded from participating in any employment activ- ities covered in 14 CFR Part 152 , Subpart E . LESSEE assures that no person shall be excluded on these i .j i -22- .i i grounds from participating in or receiving the services or benefits of any program or activity covered by this subpart. LESSEE assures that it will require that its covered suborganizations provide assurances to LESSEE that they similarly will undertake affirmative action programs, and that they will require assurances from their suborganizations , as required by 14 CFR 152 , Subpart E, to the same effort. H. That LESSOR reserves the right to further develop or improve the landing area of Redding Municipal Airport as it sees fit, regardless of the desires or view of LESSEE and without interference or hindrance. I . That LESSOR reserves the right, but shall not be obli- gated to LESSEE, to maintain and keep in repair the landing area of Redding Municipal Airport and all pub- licly-owned facilities of said Airport, together with the right to direct and control all activities of LESSEE in this regard. J. That this Lease shall be subordinate to the provisions and requirements of any existing or future agreement between LESSOR and the United States relative to the development, operation, or maintenance of the Redding Municipal Airport. K. That there is hereby reserved to LESSOR, its successors and assigns , for the use and benefit of the public, a right of flight for the passage of aircraft in the airspace above the surface of the Premises herein. This public right of flight shall include the right to cause in said airspace any noise inherent in the operation of any aircraft used for navigation or flight through said airspace, or landing at, taking off from, or operation on the Redding Municipal Airport . L. That LESSEE agrees to comply with the notification and review requirements covered in Part 77 of the Federal Aviation Regulations in the event future construction of a building is planned for the herein Premises, or in the event of any planned modification or alteration of any present or future building or structure situated on the herein Premises . M. That LESSEE, by accepting this Lease, expressly agrees for itself , its successors and assigns , that it will not erect nor permit the erection of any structure or object nor permit the growth of any tree, on the land subject 1 -23- i 11 I �I I 'I to this Lease above any mean sea level elevation that would be in non-compliance with Part 77 of the Federal Aviation Regulations . In the event the aforesaid cove- nants are breached, LESSOR reserves the right to enter upon the land/Premises hereunder and to remove the offending structure or object and cut the offending tree, all of which shall be at the expense of LESSEE. N. That LESSEE, by accepting this Lease, agrees for itself, its successors and assigns, that it will not make use of the Premises herein in any manner which might interfere with the landing and taking off of aircraft from the Redding Municipal Airport, or otherwise constitute a hazard. In the event the aforesaid covenant is breached, LESSOR reserves the right to enter upon the herein Premises and cause the abatement of such inter- ference at the expense of LESSEE. ,I O. That it is understood and agreed that nothing herein contained shall be construed to grant or authorize the granting of an exclusive right within the meaning of Section 308a of the Federal Aviation Act of 1958 (49 U.S .C. 1349a) . P. That this Lease and all provisions hereof shall be subject to whatever right the United States Government now has or in the future may have or acquire, affecting the control , operation, regulation and taking over of said airport or the exclusive or nonexclusive use of the airport by the United States during the time of war or national emergency. 26 . LESSOR ADMINISTRATION. Whenever LESSEE is required to secure the approval or consent from LESSOR under this Lease, LESSOR shall mean the Director of Airports of the City of Redding. However, at the I ,I option of the Director of Airports of LESSOR, or the LESSEE, and according to proper procedure, any such questions may be referred to the City Council of the City of Redding whose decision thereon shall be final . -24- .i i 27 . ENTIRE AGREEMENT. This Lease sets forth the entire agreement between the parties hereto. Modifications or additions to this Lease shall be considered valid only when mutually agreed upon by the parties in writing. 28 . 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 LESSEE in their respec- tive rights and obligations contained in the valid covenants, conditions , and provision of this Lease. 29 . MECHANICS ' LIENS . LESSEE shall keep the demised Premises and the property on which the demised Premises are situated free from any liens arising out of any work performed, material furnished, or obli- gations incurred by LESSEE. 30 . NOTICE. Any notices or demands that may be given by either 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: City of Redding c/o Director of Airports P. 0. Box 496071 Redding, CA 96049-6071 -25- To LESSEE: Peter Chu 6751 Woodrum Circle, Ste. No. 210 Redding, CA 96002 31 . ATTORNEY' S FEES . In the event suit or action is instituted to enforce any of the provisions of this Lease, 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 . 32 . BINDING ON SUCCESSORS. The provisions and conditions of this Lease shall be binding upon and inure to the benefit of the heirs , executors, adminis- trators, personal representatives, successors, and assigns of the parties hereto. 33 . TIME OF ESSENCE. Time is of the essence of this Lease and of each and every provision hereto. 34 . DISCRIMINATION. A. Notwithstanding any other provisions of this Lease, LESSEE shall make its services available to the public .' without unjust discrimination; provided, however, that LESSEE shall have the privilege of refusing service to any person or persons for just cause, but not to dis- criminate by virtue of race, creed, sex, or color. LESSEE shall furnish said services on a fair, equal, and not unjustly discriminatory basis to all persons and users thereof, and will charge fair, reasonable, and not unjustly discriminatory prices for such services . 'I B. This Lease is subject to the requirements of the U. S. Department of Transportation' s regulations, 49 CFR part 23, subpart F. LESSEE agrees that it will not discrimi- -2 - I 6 l i i nate against any business owner because of the owner' s race, color, national origin, or sex in connection with ,i the award or performance of any concession agreement covered by 49 CFR part 23 , subpart F . C. LESSEE agrees to include the above statements in any subsequent concession agreements that it enters and cause those businesses to similarly include the state- ments in further agreements . 35 . TAXES . LESSEE shall pay all taxes when due, including, but not limited to, sales taxes; personal property taxes on all personal 'I property placed by LESSEE on the leased Premises; and any posses- sory interest tax which is levied on any of the leasehold Premis- es by reason of LESSEE's occupancy thereof .. 36 . CEQA. It has been determined that this matter is categorically exempt from the provisions of the California Environmental Quality Act. 'h IN WITNESS WHEREOF, the CITY OF REDDING and PETER CHU have ,I executed this Lease on the days and year set forth below. 'I CITY OF REDDING ,i DATED: 1993 By: Mayor PETER CHU I DATED: ` - 1993 By: i I -27- I I) �I ATTEST: CONNIE STROHMAYER, City Clerk FORM APPROVED: 'i RANDALL A. HAYS, City Attorney I i I 'I �I -28- n I /1 I I� � b V.: m z O i f•::. I — r t al ac 0 tt .i- i Y Y r O . - o - =- — a r: - - _ i y.... ............. 3 :•� a Z r I L CJ N I aA i 1 N d L O1 C ' ` Y l _ cuS- 1 i EXHIBIT " B •• RE D D=NG MUN I C Z PAL A=RPORT TERM=NAL F=XE D K=TCHE N/COCKTA=L LOUNGE E QU=PME NT i ► Schaffer double hole ice cream cabinet (4-DIA) complete with syrup rail , syrup dispenser and jars . ► Frigidaire ice machine flaker (SFV 908) . ► Silver King milk dispenser (NSF SKI 60375) . Includes blender connected to door and stand. ► Work table, custom fabricated four foot stainless steel work table with dipper well and four inch back-splash. Galvanized base and shelf under with dish storage for ice cream bowls and glass storage for milk glasses . ► Storage shelf for coffee cups . ► 16 GA S .S . shelf . Below ventilator hood and above stove for adequate dish storage. ► Stainless wainscoating, diamond tuffed. Behind prerinse hose. Below ventilator hood with 3" air space. ► 18 GA S.S . hood and lining for dishwasher. Custom fabricated. ► Clean and soiled 16 GA S .S . dish table including NSF two compart- ment sink. Pressed in with slide bars and legs . Includes faucet. ► Disposer and cone insinkerator. 3/4 HP (SS 75) . Manual switch. ► Fisher prerinse system complete (2410) . ► Front bar and back bar, cocktail lounge. ► ADS low temperature dishwasher. ► Li ' l Mizer low energy dishwasher. ► Pot rack. ► Nor-Lake single door refrigeration (TR 26 BSSD) with stainless steel door. ► Whirlpool ice machine and bin (CFCN7-AG) and (CF CB 6E) . Page 1 of 4 �I ► Chef ' s table, custom fabricated with Nor-Lake refrigeration (RPT 26 BSSD) . Four hole Duke steam table ( 304) with shelf under for storage. Customized cutting board. ► Hobart four basket fryer (CK 81) , with two individual components and two individual elements . Hinged, reset buttons under, self cleaning. Extra fuses , protects thermostat circuit. Prevents overheating. Built in power turnoff. Anti-splash mechanism protects against heating elements dropping into hot shortening. P. Hobart electric broiler (CB 51) . Two independently operated 16" x 'i 16" grid cooking areas . Single grid preheats to 400OF in 5,1 minutes . Handles (24) 1" thick strip steaks per load. Exclusive high temperature pyrolytic self cleaning cycle for fast grid cleanup at 10 KW. Has two grease drawers , two splash-guards , two funnel shaped drip receptacles that channel grease into grease ,i drawer. ► Hobart oven and grill (CR 42) . Free standing griddle controls are located below ranges ' waterfall . Thermostats provide complete heating range. On/off signal light with each griddle section. Grease chutes carry spillage into removable drawers . Standard stainless steel front requires minimal care. Front fuses for easy accessibility. Each griddle section is independently controlled by 100-450oF thermostat. ► Hobart (CR 43) and six hot plate range. Thermostatically con- trolled oven with stainless steel door and oven rack for easy cleaning. ► Custom fabricated 18 GA S .S . ventilator and lining. ► Generation 2 fire protection system with manual pull station. ► Duke baker' s table. Maple wood top with 4" back-splash. Galva- nized base with three drawers in center and one mobile storage bin under each side. ► Custom fabricated NSF 16 GA S .S . 5 ' -5" work table with backspiash. Galvanized shelf below. ► Shelves, wall mounted shelves , rack shelves , overshelf, with additional shelves above counter, Schaffer double hole ice cream cabinet, work table, and dish table. All custom fabricated in 302- s included. heat lam 16 GA S .S . #35 p ► Custom fabricated NSF 16 GA S .S . salad preparation sink with faucet and back-splash. I Page 2 of 4 ► Three ( 3) Nor-Lake two door refrigeration (TR-48BSSD) units with stainless steel doors . Air distribution system for energy efficient operation. Defrost vaporized energy saving cycle control . Self closing hinges . Chrome wire shelving with thermo- static expansion valves . ► Nor-Lake two door freezer (TF 49ASSD) with stainless steel doors for easy cleaning. Easy enter housing for grill and cooler unit. Adjustable four tier heavy duty chrome wire shelving. ► Beverage-Air two door freezer (4001395) . ► Delfield waitress station with water station and ice bin for storage. ,i ► Customized waitress station with water station, ice bin, and storage shelves/cabinets . ► Custom fabricated table. Stainless steel . For fryer and boiler with 4" back-splash and galvanized shelf under. ► Hobart convection oven (CN 904) . Oven preheats to 350oF in 10 minutes . Will cook 132 well-done hamburger patties in 10-12 minutes . Will cook at approximately 500 lower than standard motor. Has sealed ball bearings , needs no lubrication for ten years . Full warranty. ► Cleveland Steamcraft oven. ► Lacrosse bar sink (SK 53-C1) . ► Toppe custom fabricated bar sink with speed rails . ► Custom fabricated bar station with speed rails and glass storage. ► Beverage-Aire three door keg box (DD 78 6V) with single head. Complete with additional six racks for beer storage. ► Low temperature glass washer (24LF) , with stainless steel door, sides and top. ► Whirlpool ice machine (CF CS 4-AE) . Air cooled ice machine. P. Custom fabricated stainless steel corner filler piece for bar. ► Hobart mixer system, two bar guns and cold plates . ► Two-tap beer installation, standard drip pan, CO2 regulation installed. Page 3 of 4 I) ► Nor-Lake walk-in refrigerated box (located outside) . ► HYTROL conveyor (Ser. No. 90672) . ► Conveyor & Casters conveyor. ► Custom fabricated three door salad cooling station with 4" deep stainless built-in salad bar with drain. ► Two (2 ) 2-receptacle waffle irons . Above items inspected by Airport Director of LESSOR and LESSEE on 13 1993 and all items are there. LESSOR SSE The following items may be used by LESSEE and/or disposed of by LESSEE as LESSEE sees fit: ► Tables ► Chairs ► Children high chairs ► Dishes, bowls, cups, saucers ► Glassware, carafes ► Stainless pots, pans, cookware ► Forks, knives, spoons ► Stainless wine stands ► Serving tray stands ► Trays ► Storage room(s) shelving/racks Page 4 of 4