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HomeMy WebLinkAboutReso. 1989-350 - Approving the second addendum to lease between the city of redding and chris a. smith r j 111t RESOLUTION NO. 81. 50 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING THE SECOND ADDENDUM TO LEASE BETWEEN THE CITY OF REDDING AND CHRIS A. SMITH, DBA CAS PROPERTIES , AT REDDING MUNICIPAL AIRPORT, 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 Addendum to Lease between the City of Redding and Chris A. Smith, doing business as CAS Properties, for land at Redding Municipal Airport, a true copy of which is attached hereto and incorporated herein. 2 . That the Mayor of the City of Redding is hereby authorized and directed to sign said Second Addendum 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 introduced and read at a regular meeting of the City Council of the City of Redding on the 17th day of October , 1989 , and was duly adopted at said meeting by the following vote: AYES : COUNCIL MEMBERS : Buffum, Dahl , Fulton, Johannessen, & Carter NOES : COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS : None ABSTAIN: COUNCIL MEMBERS: None ./<4..g/4kLgejak SCOTT CARTER, Mayor City of Redding ATTEST: FOR APPROVED: ETHEL A. NICHOLS , City Clerk DALL A. HAYS , Cit Attorney S SECOND ADDENDUM TO LEASE This Second Addendum to Lease Agreement is made and entered into this 17th day of October, 1989 , by and between the CITY OF REDDING, a Municipal Corporation and General Law City, herein- after called "Lessor, " and CHRIS A. SMITH, doing business as CAS PROPERTIES, hereinafter called "Lessee" : WITNESSETH: WHEREAS , Lessor and Lessee entered into a Lease Agreement and [First] Addendum to Lease dated September 20 , 1988 ; and WHEREAS , Lessor and Lessee wish to further amend said Lease Agreement pursuant to the terms and conditions of this Second Addendum to Lease; NOW, THEREFORE, it is agreed between the parties hereto as follows: I . PARAGRAPH 3 IS AMENDED BY CHANGING THE NUMBERING OF PARAGRAPH 3 (a) TO 3 (a) (1) ; ADDING THE FOLLOWING PARAGRAPH 3 (a) (2) ; AND AMENDING PARAGRAPH 3 (b) . THE ENTIRE PARAGRAPH 3 SHALL NOW READ AS FOLLOWS : 3 . Lessee' s Options to Renew Lease. (a) (1) Lessee shall have two five-year options to extend the term of this Lease. Such options shall extend the initial 30-year term of this Lease for two additional five-year periods, to September 14, 2023 , and September 14 , 2028 , respectively. If Lessee exercises such option(s) , all of the terms of this Lease Agreement shall remain in full force and effect, with the exception of this clause covering Lessee' s option to renew. The option (s) shall be exercised by written notice addressed by Lessee to Lessor no less than ninety (90) days II J • • prior to the expiration of the then current Lease term. (a) (2) Lessee may extend the full term hereof to fifty (50) years, at Lessee' s sole option. Such option shall be exercised by giving written notice thereof to Lessor on or before the 29th anni- versary of the execution of this Lease. Notwith- standing the written exercise thereof, such additional 10-year extension shall be null and void if Lessee commits or suffers any act of default under the terms hereof prior to the initiation of such terms. The rental due for such 10-year periodshall be the then-current market rate for the property. If the parties are unable to agree upon the market rate of the property within more than 90 days before the 40th anni- versary of the execution of this Lease, each party shall select a qualified real estate appraiser or broker, duly licensed in the State of California. Such brokers or appraisers shall select a third appraiser or broker similarly licensed. The thus constituted panel of appraisers or brokers shall, thereafter, determine the market rate, which determination shall be binding upon the parties. Lessee shall pay the cost of such determination. (b) In addition, Lessor hereby grants, for a period not to exceed 14 years, 6 months, to Lessee a right of first refusal to lease that parcel of land, designated in Detail "A" attached hereto and incorporated herein by reference. In consideration of the grant of this right of first refusal, Lessee agrees to pay Lessor additional rent calculated at $ .02 per square foot per year, 1/12th of which will be payable monthly with the regular rental installments. The current amount of -2- 4 S this additional rent is $64 .00 per month. Such additional rent shall terminate upon termination of the right of first refusal. The amount of this additional rent shall be adjusted by the same percentage adjust- ment made to the rental charged for the premises. Lessor shall not enter into a binding lease or option to lease such property until it has first offered Lessee, in writing, a lease on said property. Lessee shall have sixty (60) days from receipt of such notice from Lessor in which to accept or reject such offer. The right of first refusal given is subject to the then existent Airport Master Plan and development policies. Any acceptance by Lessee shall be in accordance with said plan and policies. Any lease of the property designated in Detail "A" shall have a term not in excess of any lease of the premises as described in Exhibit "A. " II . PARAGRAPH 11 IS AMENDED TO READ AS FOLLOWS: 11 . Mortgage (s) . Lessee and his assigns shall have, and are hereby given, the right to mortgage the leasehold created by this Lease for any amount and for any term not extending beyond the lease term, or any renewal thereof. Lessor shall reasonably cooperate with Lessee' s efforts to apply for and obtain a mortgage or other financing secured by the leased premises. Lessor shall be given written notice thereof of any such mortgage, including the mortgagee' s address and loan number. In the event of default hereunder, Lessor shall have no right to terminate the Lease or retake possession of the premises or expel Lessee unless 60 days' advance written notice of such default is given by Lessor to Lessee. Notwithstanding the foregoing, Lessor shall have no right to terminate the Lease and retake possession if there -3- tl r S is instituted by the mortgagee a suit to foreclose the mortgage on the leasehold interest, and such suit is dili- gently prosecuted to conclusion. The mortgagee is hereby given the power and authority, at its option, to cure all such events of default which may be cured by action of the Lessee, and in the name, place, and stead of the Lessee. In the event a mortgage on the leasehold is foreclosed, the purchaser at the foreclosure sale may assign, sell, or , otherwise dispose of the leasehold interest, subject to approval by Lessor of any such assignment or assignee; such approval shall not be unreasonably withheld. Notwithstanding the provisions of paragraph 3 (a) (2) above, Lessor may, at its option., by notice thereof to Lessee in writing, given no sooner than ten (10) days past the date of maturity or payment in full (whichever shall be later) of the initial long-term financing on the property, terminate Lessee 's option to extend the term of the Lease beyond the 40th anniversary thereof. III . ALL OTHER TERMS AND CONDITIONS OF SAID LEASE AND [FIRST] ADDENDUM DATED SEPTEMBER 20 , 1988 , SHALL REMAIN IN FULL FORCE AND EFFECT. IN WITNESS WHEREOF, the parties hereto have set their hands on this and the following page 5 in the presence of their officers duly authorized in that behalf on the day and year set forth below. . I CITY OF REDDING Dated October 17 , 1989 By: SCOTT CARTER, Mayor -4- 1 • S • Signatures to Second Addendum dated October 17, 1989 , continued: I CHRIS A. SMITH, doing business as CAS PROPERTIES Dated October , 1989 By: CHRIS A. SMITH II i I ATTEST: ETHEL A. NICHOLS, City Clerk FORM APPROVED: RAND=.LL A. HAYS, City Attorney I -5- I � I