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HomeMy WebLinkAboutReso. 1986 - 264 - Approving the lease agreement between the city of redding and tcb real estate corporation for the city customer services department , _ . 111. . III i . . RESOLUTION NO. i6 --046' A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING THE LEASE AGREEMENT BETWEEN THE CITY SOF REDDING AND TCB REAL ESTATE CORPORATION FOR THE CITY CUSTOMER SERVICES DEPARTMENT TO BE LOCATED AT 1550 CALIFORNIA STREET, AND AUTHORIZING THE MAYOR TO SIGN SAME. BE IT 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 attached Lease Agreement between the City of Redding and TCB Real Estate Corporation for the premises to be occupied by the City' s Customer Services Department at 1550 California Street; and 2. That the Mayor of the City of Redding is hereby authorized and directed to sign all necessary documents 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 on the aforesaid documents , when appropriate; and 3. That a true copy of the Lease Agreement is attached hereto and made a part hereof by reference. 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 October , 1986 , and was duly adopted at said meeting by the following vote: AYES: COUNCIL MEMBERS: Carter, Dahl , Gard, Johannessen, & Fulton NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None ABSTAIN: COUNCIL MEMBERS: None 4Z LEE D. FULTON, M.D. , Mayor City of Redding ATTEST: � r /l r 6 FORMPROVED: f. Al /'�� �D-77 Lf -4- 4. -.7-7,(7/(„__) ', i'- � -- ET47 L A. NICHOLS, City CRA DALL A. HAYS, City ' Attorney g , Y Connie Strohmayer, Deputy LEASE THIS LEASE is made this day of November, 1986 , by and between TCB REAL ESTATE CORPORATION, hereinafter referred to as "Lessor" , and THE CITY OF REDDING, hereinafter referred to as "Lessee". Lessor hereby lets to Lessee and Lessee hereby hires from Lessor, upon the terms and conditions hereinafter set forth, those certain premises which are identified as Suite 1 and Suite 2a in Exhibit " C " , and which are fully described in Exhibit " A-1 " and Exhibit " A-2 " attached hereto. The premises consists of 5600 feet of floor space, together with 5600 square feet of space in the basement located under Suite 1 and 2A as shown in Exhibit " C " in the former ;CP&E building, at 1550 California Street, Redding, Shasta County, California. 1. TERM ( a) The term of this lease shall be for seven (7 ) years from November 1 , 1986, to October 31 , 1993. Lessee shall also have the option to relet the premises according to the terms of this contract for an additional two (2 ) years with the option to be exercised at least six (6 ) months prior to the expiration of the original leasehold term (b) Lessee has the right to terminate this lease after the first three years of the leasehold term on the expressed condition that Lessee completes construction on a new City Hall which includes space for the customer services department . In the event this condition is fulfilled, Lessee 1 • e may terminate this lease at any time after three 0 ) full years from date of occupancy by providing ninety (90 ) days advance written notice of the early termination which will be delivered to Lessor. 2. RENTAL Lessee shall pay to Lessor a rental in the amounts as follows: YEAR MONTHLY RENT 1 $3864.00 2 $4743.00 3 $5344 .00 4 $5612.00 5 $5881 .00 6 $6153.00 7 $6483.00 A five percent (5% ) increase to the monthly rental payment will be added annually in each of the two (2) option years. Rent shall be payable in advance on the first day of each month during the term. 3. PAYMENT OF RENT Lessee agrees to pay the rent as set forth in paragraph 2 to the Lessor on the first of each month commencing on November 1 , 1986, and continuing on the first day of each suceeding month for the term of the ease, and free of any and all claims and demands against the Lessors of any kind or character. 4. USES The Lessee agrees not to replace the original business 2 , . III • to be placed in the let premises with any substantially different type or types of business without the written consent of the Lessor; except Lessor will not object to any department of the City of Redding occupying the premises. A complete set of working drawing containing plans land specification will be initialed both by Lessor and City of Redding to more specifically describe the exact nature of the rimprovements to be completed. The basement spaceconsisting of 5600 square feet is to be used for storage purposes only. Lessee shall not make use of premises that will cause the premises to be uninsurable. j 5. IMPROVEMENTS The Lessor has agreed to make certain improvements for the benefit of the Lessee. The improvements are more fully described in architectural drawings prepared by Dick Smart, dated April, 1986, revised; August 11 , 1986 , August 16 , 1986 and September 9 , 1986 together with clarificatioJn letter dated August 21 , 1986 , which are attached and marked Exhibit " D " ; Exhibits " A-1 " and " A-2 " are diagrams ;which describe the office layout of the premises. The improvements to which the parties agree, as set forth in Exhibit " A-1 " and " A-2 " , are estimated to cost $55,000.00 and estimated costs of the parking lot improvements are $25 ,0004.00. The improvements to the parking lot described in Exhibit " B " , will consist of new surfacing, entrance, exits, curbing and striping as indicated and will be installed at the sole expense of Lessor. // 3 • 411 6. PARKING • Lessee shall have the exclusive right to use sixteen ( 16) of the parking spaces in the area described in Exhibit " B " which is located at the south end of the building. Any enforcement problems relating to the exclusive use of these sixteen (16) spaces shall be the responsibility of the Lessee. 7. CONFORMANCE TO LAW The Lessee, in conducting business upon the premises, shall comply with and conform to all laws, ordinances and regulations governing the conduct of the business 8. INSPECTION The Lessor, or their agent, shall have the right during normal business hours during the existence of this lease to enter into any part of the leased premises to ascertain its condition, and to do any act or thing required by Lessee to be done in respect to which it may be in default, and for any other purpose incident to the rights of Lessors. 9. SUITABILITY By entry into possession of the premises hereunder , the Lessee acknowledges that the premises and every part thereof , with the addition of the agreed upon improvements, are suitable for their purposes , and that on the last day of the term or upon other sooner termination of this lease, the Lessee shall peaceably and quietly leave, surrender and yield up to Lessor all of the leased premises , with the appurtenances and fixtures in good order and condition and 4 • • repair, reasonable use and wear thereof and damage by acts of God or the elements excepted. 10. ABANDONMENT Lessee shall not vacate or abandon the premises at any time during the lease term; and if Lessee shall abandon, vacate or surrender the premises, any personal property belonging to Lessee and left on the premises shall be deemed to be abandoned, at the option of Lessor. 11 . REPAIRS (a) Lessee' s Responsibilities: Lessee shall keep and maintain in good order, condition, and repair, except for reasonable use and wear, the premises and every part thereof, including fixtures, interior walls, floor, ceiling, signs , all interior appliances and similar equipment and all doors, windows, plate glass, except for the heating and air conditioning unit which shall be the responsibility of Lessor. (b) Lessor' s Responsibilities: Lessor shall be responsible for maintenance of the exterior of the building , the roof, the parking lot, and the heating and air conditioning unit. 12. UTILITIES Utilities for the Lessee' s use shall be paid for by the Lessor except Lessee shall be responsible for the separate water meter in the parking lot. 13. INDEMNIFICATION OF LESSORS The Lessors shall not be liable for any destruction of or any injury to any goods, wares, merchandise, furniture, 5 411 • property or effects in or upon the leased premises by reason of damage caused by gas, sewage, defective electric wires, gas pipes, water pipes, refrigeration pipes, tanks, drains , or fire, or for any injury to any person or persons in or about the leased premises during the term of this lease, nor shall the Lessors , their successors or assigns be ' liable for any injury to the property or to the Lessee for causes mentioned herein, or to its patrons or to third persons, during the occupancy by reason of the occupation and enjoyment of the premises by the Lessee , except as to those losses incurred by the negligence of Lessor, its agents, servants , and employees. 14. INSURANCE a. Lessor acknowledges and Lessee warrants that Lessee is self-insured for bodily injury and property damage. b. The Lessor shall maintain a policy of fire insurance at its sole cost and expense. 15. HOLDING LESSORS HARMLESS The Lessee agrees during the full term of (this lease to indemnify and save the Lessors harmless from any and all liability whatever for damages to persons or property, including death, resulting from the use of the premises, or any activity or operation conducted thereon by Lessee or its agents or employees. Lessee shall not be required to indemnify nor hold harmless Lessor from any claims or causes of action for injuries or damages , if such injuries or damages may be attributed to the negligence or wjllfullness of landlord. 6 : o • 16. FREE FROM LIENS The Lessee agrees to keep the leased premises free from all liens and encumbrances including mechanics' liens and the Lessors shall have the right to enter the premises during normal business hours for the purpose of posting any notices of nonresponsibility that they desire. 17. EMINENT DOMAIN In the event proceedings in eminent domain, are instituted to condemn the premises , or in the event that the premises are purchased by a public agency for public use, this lease shall be forthwith terminated and cancelled and both parties relieved from further liability hereunder. Any unused rental shall be returned to the Lessee and the Lessee shall be entitled to any compensation awarded for I merchandise, fixtures, and other property owned by it . 18. REMOVAL OF PERSONAL PROPERTY Upon termination of this lease, the Lessee shall have the right to remove any personal property which it may have installed and which is unattached. Trade fixtures used by the Lessee shall be handled pursuant to Paragraph 19. All floors, walls and ceilings of the premises shall be restored by Lessee so that the removal of personal property will not damage or deteriorate the Lessor' s premises, reasonable wear and tear accepted. 19. TRADE FIXTURES Subject to the provisions of Paragraph 18 of this lease, the Lessee shall have the right to install trade fixtures in the leased premises so long as these fixtures do 7 • • not damage or injure the premises. On the termination of this lease, or any renewed term, the Lessee shall be entitled to remove any trade fixtures which have been installed to the walls , ceiling and/or floor provided Lessee agrees to restore the premises to their original condition after removal of the trade fixtures. Any free standing trade fixtures such as racks, unattached counters, and other such trade fixtures may be removed by the Lessee provided that the Lessee restores the premises to its original condition after remNpoval. 20. NON-WAIVER OF DEFAULT i If the Lessee should default as to any of the conditions , or covenants, or agreements herein contained and the Lessors, having knowledge of such breach, should not take advantage of the same, such failure on their part shall not be construed as a waiver of such conditions, covenants or agreements, and the right of termination shall remain in full force and effect unless expressly waived in writing. 21 . HOLDING OVER AFTER TERM In the event the Lessee occupies the premises from and after the term of this lease, such occupancy shall be deemed a month-to-month tenancy and on the same terms and conditions as set forth herein, except the monthly rental shall be increased five percent (5% ) during the first year of the hold additional fivepercent (5%) per month for each over and an additional year the tenant holds over. 22. ATTORNEY' S FEES I Should either party hereto be compelled to resort to legal action to enforce their rights hereunder, ithe prevailing 8 party in such legal action shall be awarded reasonable attorney's fees in such action as may be determined by the Court. 23. LOSS BY FIRE In the event the premises are destroyed or are damaged by fire or other peril as to render the same untenantable , at Lessors' option the premises shall be restored with all reasonable speed by Lessors, and Lessee shall pay a reasonable rent during the period of restoration for such part of the premises as are fit for occupancy, not- withstanding anything herein to the contrary, if the repairs cannot be made in sixty (60) working days , the lease may be terminated at the option of either party. 24 . ASSIGNMENT AND SUBLEASING This lease , or any interest herein, shall not be assigned, nor sublet, nor subleased, nor underlet by Lessee • or any part hereof without the written consent of the Lessor first had and obtained, except Lessee may assign the Lease , or any interest under it , to any other department within the City of Redding. 25. ENTIRE AGREEMENT This lease , including Exhibit " A-1 " , Exhibit " A-2" Exhibit " B " , Exhibit " C " and Exhibit " D " , contains the entire agreement between the parties as to the premises. All previous and collateral to agreements, representations, promises and conditions relating the subject matter of this lease are superseded by this lease. Any representation, promise or condition not incorporated in this lease shall not 9 • 411 be binding on Lessor and any condition not incorporated in this lease shall not be binding on Lessor or Lessee. 26. SUBORDINATION Lessee agrees that this lease shall be subordinate to any purchase money mortgages or purchase money deeds of trust in the nature of mortgages in which TCB Real Estate Corporation is named as the mortgagee or beneficiry. That may hereafter be placed upon the premises , to any' and all advances made or to be made under them, to the interest on all obligations secured by them, and to all renewals , replacements, and extensions of them. If the mortgagee or beneficiary elects to have this lease superior to its mortgage or deed of trust and gives notice of its election to Lessee, then this lease shall be superior to the lien of any such mortgage or deed of trust, whether this lease is dated or recorded before or after the mortgage or deed of trust. LESSOR: LESSEE: 10 -- l i T,...L. ,- .1 0 0 f f- M0.-1 r a+oa • 1 .� >••• • - �' 7.5.:,—,..7„......:„... iM -O fl.�._� l'‘ [..)c---__al......—— �; ____0--f .�,�_- 13.1 L_ .ill .-a 1 L o•f L •.1 :/#11---1 r� I -rj1 TI I • o r w 1 o i ! I ---.)-- t� 1 ,-- `� / ii • I i1 i� 1 r t '� I -c c=-J=-'. i I t f � � : �,r f 1 a ; : • _ 1 _ ___�' . t ti•c-�'-) i • • _ I l 0 I ' I I ! 1 I ; ; i i I, _yd.=-mac 1 ' `T r �f)� I. s C7 ...�Jij ' I. 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Li m ' J 3 o o .= tno 3 0 0 G Ii 3 o d n1 -J : H O (- - c i , � o • kto 0 P u • O O a� b i tT O C 0 D crt n 3 ci m x33 r✓ CD © x _ O cm tom 0 ! 't- • mO min 3 � to ¢ wTA ,• .7 m m sn MC cD limn NJ LIP to 13 a • 0. 0 m ® C) �+., 1 0 _, D . :..., _ H to p 2 r_ O. m r- 0 ,L N n m q Z s� A. En C'e7:34 --4 1 ... a? rn m t 2x � �•� _ --4 61 I:---I---;.1): n NA • 4F1 g 4. ,. k 1 i ,z,- 4 �. 6-1 i1 r le D `a X 1 9 - 4 r 6-7/081 T c LIP iI •� � • m cad >onDir r -VI- I=I n o c m n o = O Q O a t7 a `- � fo d - o5 � ^ � Q m it vt Z aTcx C D o = =c - 6 lJ ao r.H O L7 IaYc1H --I aca000 � 1 .. RICHARD SMART / ARCICT 280 HEMSTEAD DRIVE/P.O.BOX 2435/REDDING,CA 96099 PHONE (916)222-5454 August 21, 1986 Rita Vokal, Manager Utilities - Customer Service City of Redding 760 Parkview Avenue Redding CA 96001 Re: T.C.B. - R.E.C. Suite 1 California Street This is to confirm our review on August 20, 1986 of drawing sheets 1 and 3 of total project sheets 1, 2, 3 and 4dated April 1986 , Revised 8-11-86/8-16-86 , and the following items. 1. Window, approximately two feet wide, to be installed in wall between Cashier and Office adjacent. 2. Sink to be installed in Lounge cabinet. 3. Lighting at exterior doors appears adequate. 4 . No insulation to be installed at exterior walls. 5. Counter, including Cashier, to be by Lessee. 6. Floor covering and underlayment, including Entry to be by Lessee. 7 . Security of Elevator Lobby door and Elevator closure to be as agreed per future discussion with Owners representative. Please sign enclosed copy and return for Contractor' s signa- ture and Owners review and distribution. Richard Smart RKS:bms Rita Vokal , Ci y of Red ing Encl. 7, / � \ cc: Brent Owen - fd �' Hill & Cox Donald F. Gallino, Inc. Gallino Construction Confirmed 110 electrical outlet in basement area leased by the Police Department. 8-21-86 • (i :4S L WI :,