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HomeMy WebLinkAboutReso. 1988-417 - Approving the 1989 lease agreement to old city hall retween the city of redding and the shasta county arts council 111 1 RESOLUTION NO. U8-y/7 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING THE 1989 LEASE AGREEMENT OF OLD CITY HALL BETWEEN THE CITY OF REDDING AND THE SHASTA COUNTY ARTS COUNCIL, 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 1989 Lease Agreement of Old City Hall between the City of Redding and the Shasta County Arts Council, 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 Lease, 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 on the aforesaid document, when appropriate. 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 6th day of December , 1988 , and was duly adopted at said meeting by the following vote: AYES : COUNCIL MEMBERS: Buffum, Carter, Dahl , Ful ton, & Johannessen NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS : None ABSTAIN: COUNCIL MEMBERS: None 4� r )47 i K.'IMAURICE JOHANNESSEN, Mayor City of Redding ATTEST: PPROVED: ?:eZtla sd-94:1---- ETHEL A. NICHOLS, City Clerk RAI'TDALL A. HAYS , City Attorney fg LEASE411 . 410 THIS LEASE is made and entered into this <X4- day of November, 1988, by and between the CITY OF REDDING, a Municipal Corporation and general law city, hereinafter referred to as "LESSOR, " and THE SHASTA COUNTY ARTS COUNCIL, a California Non-profit Corporation, whose principal office is located in the City of Redding, County of Shasta, State of California, hereinafter referred to as "LESSEE: " WITNESSET H: That for and in consideration of the covenants and agree- ments herein contained, LESSOR does hereby lease, demise, and let unto LESSEE the building located at 1313 Market Street, in the City of Redding, known as Old City Hall, for a multi-media arts center, for a term of one (1) year commencing on the 1st day of January, 1989, and terminating on the 31st day of December, 1989. NOW, THEREFORE, it is mutually understood, stipulated, and agreed by and between the parties hereto as follows: 1 . The consideration provided by LESSEE is in the amount of a grant from LESSOR of Eighteen Thousand Eight Hundred Dollars ($18,800.00) for the operation and administration of Old City Hall according to the terms of this agreement. The grant is to be paid in two increments of $9`400.00 each--the first on January 1 , 1989, and the second on Affizoky 1, 1989. LESSEE shall continue to seek and obtain additional contributions and donations, grants, and subsidies from residents of the community and state and federal governments . It is also anticipated by the parties hereto that the patrons and members of the Board of LESSEE will donate their services individually from time-to-time under the direction of the Director of LESSEE' s Board of Directors to assist as volunteers in the functioning of the multi-media Arts Center. 2 . LESSOR covenants and agrees to maintain the subject demised premises, including the provision of security measures to prevent fire and theft within the building, as well as to provide and pay all costs of all utility services. In this connection, it is further agreed that LESSOR shall provide janitorial service to the premises, and it is the present intention of the parties hereto that this will be provided by including the demised premises within the provisions of LESSOR' s existing or subsequent janitorial service contracts. 3 . As stated above, the term of this Lease is for one (1) year. It is the present intention of the parties hereto that on the expiration of the term hereof, this Lease, or some modifi- cation thereof, shall be renewed for additional successive one (1) year terms at the discretion of LESSOR. Provided LESSEE is not in default hereunder, such Lease shall be considered for renewal each year by the City Council of LESSOR based on City Council' s determination of LESSEE' s performance in fulfilling the stipulations of this Lease Agreement and the goals set forth in Exhibit "A" attached hereto and incorporated herein by reference. Provided LESSEE is not in default hereunder, and subject to the -2- 411 All provisions hereinafter contained as to earlier termination of this Lease, in the event that subsequent differences arise between the parties hereto and either party desires to cancel this Lease, it is covenanted and agreed between LESSOR and LESSEE that such cancellation can be effectuated only upon six (6) months' written notice to the other party in advance. 4 . Prior to considering a renewal of this Lease, LESSEE shall provide the following information to LESSOR no later than thirty (30) days prior to the expiration of the term hereof: (a) The latest copy of the annual audit that is required by the State Arts Council and which outlines income and expenditures regarding the use of state grant funds and the matching funds of LESSOR; (b) A financial statement at the end of LESSEE' s fiscal year which outlines how LESSEE utilized LESSOR' s grant funds; and (c) A report concerning the last 12 months of activities and events of LESSEE relative to meeting the goals set forth in Exhibit "A" attached hereto. 5 . One member of the Redding Civic Arts Commission and one member of the Board of Directors of the Redding Museum and Art Center shall serve as members of the Board of Directors of LESSEE. 6 . LESSEE shall be responsible for making the Old City Hall building open to the public an average of twenty (20) hours per week minimum for the duration of this Lease. -3- • -111 - 7 . .7 . If LESSEE should be adjudged bankrupt, either by voluntary or involuntary proceedings, or abandon or vacate said premises, or make an assignment for the benefit of creditors, or said demised premises should come into possession or control of any trustee in bankruptcy, or if any receiver should be appointed in any action or proceeding with power to take charge, possession, control, or care of said demised property, LESSOR shall have the option to forthwith terminate this Lease and to re-enter said demised premises and take possession thereof. In no event shall this Lease be deemed an asset of LESSEE after adjudication in bankruptcy. 8 . LESSEE shall not, without the previous consent of LESSOR in writing, assign this Lease or any interest therein, nor underlet or sublet the whole or any part of the premises. Any purported assignment, either direct or by operation of law, or under or in pursuit of any order, judgment, decree, or process of Court, shall be wholly void and shall, at the option of LESSOR, work a forfeiture of this. Lease. The consent of LESSOR to the first or any other assignment shall not be a consent to any subsequent assignment, but the prohibition against assignment without consent shall continue in full force as against any assignee. 9 . LESSOR hereby reserves the right for its agents and employees to come onto the demised premises at any time for maintenance, custodial or security purposes, and to have a right -4- 410 of access to all portions of the demised premises for the execution of said purposes . 10 . The demised premises shall be used by LESSEE solely for purposes consistent with the operation and maintenance of a publicly-owned multi-media arts center, and shall comply with and conform to all laws, ordinances, and regulations applicable to the demised premises or the designated uses thereof, or pertaining to a non-profit corporation incorporated under the laws of this State. 11 . If LESSEE should default as to any of the conditions, covenants, and agreements herein contained, and LESSOR, having knowledge of such breach, should not take advantage of same, such failure on LESSOR' s part shall not be construed as a waiver of such conditions, covenants, or agreements, and the right of termination by LESSOR shall remain in full force and effect unless expressly waived in writing, nor shall the right to give or withhold consent in any case be deemed to be waived on account of a prior waiver thereof. 12 . LESSOR or its agents, accompanied by a member of the staff or Board of LESSEE, shall have the right, on reasonable occasions, to enter into any part of the building hereby leased to ascertain and inspect its condition. 13 . LESSEE shall assume all responsibility and liability in connection with the operation of said multi-media arts center, and LESSEE assumes and agrees to save and hold LESSOR and its officers, agents, and employees harmless from any responsibility -5- • or liability in connection with LESSEE' s use of the premises hereunder leased during the term of this Lease, including damages for injuries to persons or property of persons using said premises. 14 . It is understood and agreed as a condition of this Lease that LESSEE shall, at its own expense, obtain and keep in full force and effect public liability insurance in the amounts of $300 , 000 .00 for injury to one person, $500,000. 00 for any one accident, and $50,000 .00 for property damage, OR, in the alternative, a combined single-limits policy in an amount not less than $500,000 .00 , and shall name LESSOR, its officers, agents, and employees, as additional insureds, and shall further contain a provision obligating the insurance carrier to notify LESSOR in writing at least ten (10) days prior to any cancellation or reduction of such insurance . A Certificate of Insurance evidencing such coverage and notice requirement shall be approved by the Risk Manager of LESSOR and filed with him prior to the first usage of the demised premises under this Lease Agreement. 15 . It is further understood and agreed as a condition of this Agreement that LESSEE will provide workers ' compensation insurance on its employees, and furnish the Risk Manager of LESSOR with a Certificate evidencing such insurance, to be approved by him. Said Certificate shall contain a provision obligating the insurance carrier to notify City in writing at -6- 111 • least ten (10) days prior to any cancellation or reduction of such insurance. To obtain an exemption from this requirement should LESSEE have no employees, LESSEE shall provide the Risk Manager of City with a letter stating that it is not employing any person or persons in any manner so as to become subject to the Workers ' Compensation Laws of California; provided, however, that should LESSEE later become subject to the Workers' Compensation provisions of the Labor Code, it will forthwith comply with the insurance requirements set forth above. 16 . 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, certified mail, postage prepaid, addressed as follows: To LESSOR at 760 Parkview Avenue, Redding, California 96001-3396; and to LESSEE at 1313 Market Street, Redding, California 96001 . 17 . LESSEE understands that the demised premises is on the National Register of Historic Places, and under no circumstances shall the appearance of the premises be altered. If LESSEE desires to place any improvements on the subject premises, LESSEE agrees that it will first obtain the consent in writing of LESSOR as to any such improvements, including advertising signs. Any improvements later installed by LESSEE within the demised premises shall become the property of LESSOR. Wall surfaces of -7- 111 premises shall be maintained in their restored condition, and shall not be used for displays or wall-hanging exhibits. 18 . LESSEE shall maintain and operate the Old City Hall it multi-media arts center for the benefit of non-profit cultural groups of Shasta County, including graphic artists, performing artists, vocalists, lectures by professional artists, musicians, and sculptors. 19 . LESSEE shall charge minimal-use fees to offset the costs of keeping the building clean. 20 . LESSEE shall be responsible for building security and janitorial maintenance in connection with the cleanup needed after each event, program administration, and office furniture. Any conditions of the premises which LESSEE believes require the attention of LESSOR should be called to the attention of the Director of General Services of LESSOR. 21 . If, with LESSOR' s prior written consent, LESSEE holds possession of the premises after the term of this Lease has expired, LESSEE shall become a tenant from month-to-month upon the terms and conditions herein specified, and upon payment of a monthly rent by LESSEE to LESSOR to be agreed upon by the parties hereto; and LESSEE shall continue in possession of the premises until termination of the tenancy by either party hereto, preceeded by thirty (30) days' written notice of such intention to terminate. 22 . LESSEE agrees to pay promptly when due any and all taxes assessed against its personal property and any possessory -8- Ill .• interest tax levied by reason of its occupancy of the demised premises. 23 . It has been determined that this matter is categorically exempt from the provisions of the California Environmental Quality Act. IN WITNESS WHEREOF, the parties hereto have executed this Lease on the day and year first above written. CITY OF REDDING By: K. MAURICE JOHANNESSEN, Mayor SHASTA COUNTY ARTS COUNCIL / By: .0/2 �l�' a ' rman of Board of Dir ctors B • /I1, Executive Director ATTEST: ETHEL A. NICHOLS, City Clerk FORM APPROVED: RANDALL A. HAYS, City Attorney -9-