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HomeMy WebLinkAboutReso 93-402 - Approve the 2nd amendment to Lease between COR & John Goold, DBA as Conruopia Gifts, for the Gift Shop Concession in the Redding Municipal Airport Passenger Terminal RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING THE SECOND AMENDMENT TO LEASE BETWEEN THE CITY OF REDDING AND JOHN GOOLD, DOING BUSINESS AS CORNUCOPIA GIFTS, FOR THE GIFT SHOP CONCESSION IN THE REDDING MUNICIPAL AIRPORT PASSENGER TERMINAL, AND AUTHORIZING THE MAYOR TO SIGN SAME. IT IS HEREBY RESOLVED by the City Council of the City of Redding as follows : 1 . That the City Council of the City of Redding hereby approves the Second Amendment to Lease between the City of Redding and John Goold, dba Cornucopia Gifts , for the Gift Shop Concession in the Redding Municipal Airport Passenger Terminal, effective November 17, 1993, a true copy of which is attached hereto and incorporated by reference. 2 . That the Mayor of the City of Redding is hereby autho- rized and directed to sign said Second Amendment to Lease 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. 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 16th day of Noveriber , 1993, and was duly adopted at said meeting by the following vote: AYES: COUNCIL MEMBERS: Pnderson, Kehoe, P7oss and Arness NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: Dahl ABSTAIN: COUNCIL MEMBERS: None CARL ARNESS, Mayor City of Redding ATTEST: FORM APPROVED: CONNIE STROHMAY , ity Clerk RANDALL A. HA , City Attorney N S E C OND AMENDMENT TO L EAS E THIS SECOND AMENDMENT TO LEASE is made an entered into by and between the CITY OF REDDING, a Municipal Corporation and General Law City, hereinafter referred to as "LESSOR, " and JOHN GOOLD, dba CORNUCOPIA GIFTS, hereinafter referred to as "LESSEE" : I W I T N E S S E T H: WHEREAS, on July 26 , 1991 , LESSOR by Resolution 91-314 approved the Consent to Assignment of Lease of the Tatsia Ragan Lease for a gift shop concession in the Redding Municipal Airport Terminal Building; and WHEREAS, LESSOR and LESSEE entered into a First Amendment to Lease effective May 1, 1993, which amended certain provisions of the Lease; and WHEREAS, LESSOR and LESSEE desire to further amend the Lease pursuant to the terms and conditions of this Second Amendment to Lease; NOW, THEREFORE, it is agreed by and between the parties hereto as follows : 1 . Effective November 17 , 1993, paragraph 4 of said Lease is hereby deleted, and the following paragraph 4 added: 4 . PAYMENTS TO LESSOR; PERFORMANCE BOND, LETTER OF CREDIT OR CERTIFICATE OF DEPOSIT (CD) . A. The minimum annual rent to be paid by LESSEE to LESSOR under this Lease and any renewal thereof for "Site A, " shall be the GREATER of the following: ( 1) For the 170 square foot Premises , Three Thou- sand One Hundred Forty-five Dollars ($3, 145.00) per year. Said rental shall be payable in twelve ( 12) monthly installments of Two Hundred Sixty-two Dollars and Eight Cents ( $262 .08) each. ! ! (2) A percentage of LESSEE's annual gross receipts, as defined on pages BS 2 and 3 of Exhibit "A" attached hereto, calculated as follows : (a) Commencing May 1, 1993, and for the re- mainder of the initial two and one-half 2 ' of the Term May( � ) year period Y P Y 1, 1993 through October 31 , 1995, a monthly rent equal to: ( i) Four and one-half percent (41%) of the amount of Gross Receipts per month. (b) For the second two and one-half (21 ) year period of the Term from November 1, 1995 through April 30, 1998, a monthly rent equal to: (i) Five and one-half percent (51%) of the amount of Gross Receipts per month. (c) For the two (2) year option Term from May 1, 1998 through April 30, 2000, a monthly rent shall be renegotiated by LESSOR and LESSEE beginning on the date LESSEE exer- cises its right to renew for said 2-year option period. In no event will said negotiations begin later than ninety (90) days prior to the expiration of the ini- tial 5-year Term of this Lease. In no event will the monthly rent be less than that for the immediate preceding two and one-half (22 ) year rental period. B. The minimum monthly rent to be paid by LESSEE to LESSOR under this Lease and any renewal thereof for -2- "Site B, " consisting of 182 square feet shall be ten percent ( 10%) of the gross receipts earned therein. C. In no event shall LESSEE pay less than Two Hundred Sixty-two Dollars and Eight Cents ($262 .08) per month during the initial Term of this Lease or the renewal thereof. D. LESSEE's payments for the monthly rental and/or payments to be made to LESSOR based on gross re- ceipts will be paid to LESSOR within seven (7) days following the end of each month. Such payments shall be accompanied by statements from LESSEE showing detailed receipts, with the statements to be in such form as prescribed by LESSOR. E. At the end of each year (April 30) during the Term of this Lease or any renewal 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 LESSOR, LESSEE will pay the balance owing within seven (7) days follow- ing said year-end review. F. All payments called for in this Lease, of which Exhibit "A" is a part hereof, including the above rent and other charges, shall be payable within seven (7) days of the billing date by LESSOR. 4 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 seven ( 7) 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 -3- • 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 failure, neglect, or refusal of LESSEE to perform any one or more of the terms, conditions, and covenants of this Lease, or as the result of any act or omission of LESSEE contrary to said terms, conditions, or cove- nants, 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 installment or rent there- after due hereunder, and each and every day thereaf- ter 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. G. LESSEE will post with the City Clerk of LESSEE a performance bond or letter of credit in the amount of One Thousand Dollars ($1 ,000.00) in favor of the City of Redding to assure payment under the terms set forth herein. For the purpose of this Lease, this is construed to mean a negotiable instrument issued by a National or State insurance company or bank doing business within the State of California in a form acceptable to LESSOR. Cancellation of the performance bond or letter of credit for whatever reason shall forthwith terminate this Agreement. ( 1) In addition to a performance bond and letter of credit, LESSOR will accept a Certificate of Deposit (CD) made out to the City of Redding. -4- Such CD shall provide for the LESSOR's absolute right to attach to said CD at any time during the Lease Term in the amount up to and includ- ing One Thousand Dollars ( $1,000.00) , and shall effectuate LESSOR's ability to do same. (2 ) Any CD contemplated by the LESSEE with resect to this Lease must be received and deemed acceptable by the City Attorney of LESSEE. H. Said bond, letter of credit or CD will be subject to attachment by the CITY upon the expiration of thirty ( 30) days after any monthly fee required by this Lease becomes due and payable. LESSEE will furnish the LESSOR with a copy of the payment bond, letter of credit, or CD. The payment bond or letter of credit will be maintained and renewed as necessary to remain in force throughout the Term of this Lease or any extension thereof. I . A claim will be made by LESSOR against said bond, letter of credit, or CD 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 conditions 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 the Premises within fifteen ( 15) calendar days after this Lease is terminated. -5- (5) Costs incurred by LESSOR at the time the Lease is terminated if LESSEE fails to leave Premises i in satisfactory condition. 2 . All terms and conditions of said Lease as amended by the First Amendment to Lease shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment to Lease on the day and year set forth below: CITY OF REDDING DATED: 1993 By: CARL ARNESS, Mayor JOHN GOOLD, dba CORNUCOPIA GIFTS �� DATED: , 1993 By: YOUN GOO LD— ATTEST: / CONNIE STROHMAYER, City Clerk FORM APPROVED: RANDALL A. HAYS, City Attorney -6-