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HomeMy WebLinkAbout4.6(b)--Amended & Restated Lease Agreement with North Valley Art League CITY OF REDDING REPORT TO THE CITY COUNCIL Recommendation Authorize the following actions relative to the Carter House building located in Caldwell Park at 48 Quartz Hill Road: (1) Approve an Amended and Restated Land and Building Lease Agreement (C-4054) with North Valley Art League for the Carter House in Caldwell Park through June 30, 2033, with an option to extend upon mutual agreement, at a monthly rental rate of $675.05; and (2) Find that the adoption of the Amended and Restated Lease is categorically exempt from review under the California Environmental Quality Act Guidelines pursuant to Section 15301 of Title 14 of the California Code of Regulations – Existing Facilities, because renewal of the lease will not result in a significant impact on the environment and will not cause an expansion of the existing use. Fiscal Impact The projected annual lease revenue for the amended and restated lease agreement with North Valley Art League (NVAL) is $8,100.60, with an annual 3 percent increase. This revenue covers the cost of ongoing maintenance for items such as pest control, janitorial service, HVAC maintenance, and other on-call maintenance. Additionally, it provides a long-term maintenance fund for roof replacement, parking lot surfacing, and other capital costs as needed. The new payment will commence retroactively on January 1, 2023. Alternative Action The Council could decline to approve the amended and restated lease agreement with NVAL, which would result in the existing agreement remaining in place without the updated expenses and monthly rent. Or, the Council could provide staff with alternate direction. MEETING DATE: January 17, 2023 ITEM NO. 4.6(b) FROM: ***APPROVED BY*** kniemer@cityofredding.org btippin@cityofredding.org SUBJECT: 4.6(b)--Approve Amended and Restated Carter House Land and Building Lease Agreement with North Valley Art League Kim Niemer, Community Services Director Report to Redding City Council January 11, 2023 Re: 4.6(b)--Amended & Restated Lease Agreement with North Valley Art League Page 2 Background/Analysis For more than 40 years, the City has been in partnership with NVAL, first at the Old City Hall building, then a small building on Parkview Avenue, and most recently at the Carter House in Caldwell Park. NVAL is a non-profit arts organization for amateur and professional artists boasting a membership of more than 250 people and many more supporters. NVAL offers community members seeking to develop their artistic ability a schedule of workshops and classes, opportunities to show their work, and events to compete for recognition of their talent. NVAL hosts a national juried show that draws entries from all over the country. Further, the presence of an art gallery in Caldwell Park adds value to the park experience and extends the attraction to a broader audience. On March 10, 2020, NVAL closed its gallery at Carter House due to the COVID-19 pandemic and re-opened on July 7, 2021. NVAL depends on public attendance, participation in art classes, and memberships to generate revenues and sustain regular operations. This closure resulted in an associated decline in revenue. NVAL continued to pay the entire prior lease payment until December 2020. The Council approved a temporary reduction in NVAL’s lease payment from December 2020 through June 2021, which annually prorated the payments through December 31, 2022. Prior to that time, the lease payment was $563 per month. The original contract commenced on July 1, 2013, spanning a 20-year term and an option to extend upon mutual agreement of both parties. NVAL has been an exemplary tenant with no extraordinary expenses. Highlights of the amended and restated lease are: • The term of the lease remains unchanged and continues through June 30, 2033. • NVAL pays all utility costs as well as $675.05 monthly toward a maintenance fund for roofing, HVAC, and other building repair/maintenance expenses. • NVAL provides care for the garden areas adjacent to the building. • NVAL provides sixty (60) hours of community service, including art workshops and tours, thirty (30) hours of which are coordinated with the Recreation Division to include art lessons for summer day camp programs. • NVAL hosts a retail area in the front of the gallery with note cards and other gift items available for sale. • The gallery is open to visitors for a minimum of twenty (20) hours weekly. • A 12-month notice is required for termination of the lease. Environmental Review The adoption of this Amended and Restated Lease is categorically exempt from environmental review under the California Environmental Quality Act pursuant to Section 15301 of Title 14 of the California Code of Regulations. This exemption permits the lease of existing public facilities when there is negligible or no expansion of use. The adoption of this Amended and Restated Lease does not expand the use of the facility beyond what was originally contemplated in the lease dated April 1, 2013, as amended from time to time. This Amended and Restated Lease likewise does not expand the use of the facility by means of an extension to its term. The term of the original lease, as amended, is not impacted by the Amended and Restated Lease. Report to Redding City Council January 11, 2023 Re: 4.6(b)--Amended & Restated Lease Agreement with North Valley Art League Page 3 Council Priority/City Manager Goals • Budget and Financial Management – “Achieve balanced and stable 10-year Financial Plans for all funds.” • Economic Development – “Facilitate and become a catalyst for economic development in Redding to create jobs, retain current businesses and attract new ones, and encourage investment in the community.” Attachments NVAL Lease Agreeement Proposed (C-4054) Amended and Restated Carter House Land and Building Lease Agreement (C-4054) 1 North Valley Art League AMENDED AND RESTATED CARTER HOUSE LAND AND BUILDING LEASE AGREEMENT (C-4054) North Valley Art League THIS AMENDED AND RESTATED LEASE AGREEMENT (“Agreement”) fully amends, supersedes, and restates in its entirety the CARTER HOUSE LAND AND BUILDING LEASE AGREEMENT (C-4054) by and between the CITY OF REDDING, a Municipal Corporation and General Law City (“Lessor”), and NORTH VALLEY ART LEAGUE (“Lessee”), a non-profit corporation, dated April 1, 2013 (“Original Lease”), and amended on August 22, 2016, December 6, 2017, February 21, 2018, November 23, 2020, and January 4, 2022. RECITALS WHEREAS, the City owns certain land and premises located at 48 Quartz Hill Road, Redding California 96003 (“Premises”), which are not needed for municipal purposes in the immediate future; and WHEREAS, Lessee has need for space to carry on its non-profit charitable activities; and WHEREAS, Lessee desires to lease from the City certain real property located at 48 Quartz Hill Road, Redding, California 96003, upon which Lessee may at Lessee’s sole discretion and for Lessee’s account, operate and maintain the Premises as a venue for hosting artistic, cultural, community, educational, performing arts, and similar events; shows; and regular ongoing use for educational or community purposes in accordance with Lessee’s requirements and on the conditions set forth herein (“Lessee’s Use”); and WHEREAS, the City desires to lease the Premises to Lessee upon the terms and conditions set forth herein; and NOW, THEREFORE, for good and valuable consideration hereby acknowledged, Lessor and Lessee enter into this Amended and Restated Lease Agreement effective as of the date this Agreement is signed by both the Lessor and Lessee as follows: AGREEMENT SECTION 1. TERM. A. Term. Lessor, for and in consideration of the covenants, conditions, and agreements herein set forth to be kept and performed by Lessee, does hereby grant, demise, and lease unto Lessee, subject to all of the conditions, covenants, terms, and agreements hereinafter set forth, that building described in Exhibit “A” attached hereto and incorporated herein by reference (hereinafter called “Premises”) for a term of twenty (20) years commencing on July Amended and Restated Carter House Land and Building Lease Agreement (C-4054) 2 North Valley Art League 1, 2013. Upon mutual agreement and City Council concurrence, the lease may be extended prior to end of term. SECTION 2. RENT AND OTHER CHARGES. A. Rent and Other Charges. The rent to be paid by the Lessee to Lessor shall consist of building repair, janitorial service, and maintenance charge, as described in Exhibit “B” attached hereto and incorporated herein by reference, and will increase by three (3) percent on January 1, each year thereafter, which is based on the estimated cost to the Lessor to provide the following: 1. Reroofing the building every 20 years. 2. Resurfacing/repaving of parking lot every 15 years (16 spaces). 3. Restriping of parking areas every five (5) years. 4. Maintenance by contract or otherwise for heating and air conditioning equipment. 5. Miscellaneous repairs, such as roof leaks or plumbing. 6. Termite/Pest control services. 7. Janitorial services. The initial rate for the building repair and maintenance charge is $67 5.05 per month. Said rent shall be payable in advance on the first day of each and every month during the term of this Lease Agreement. B. Estimated Annualized Cost. The estimated annualized cost for items 1, 2, and 3 of paragraph 2.A. above shall be adjusted every three (3) years, and adjusted by the average increase of the United States Bureau of Labor Statistics West Coast Mid-Size Cities B/C June-July CPI with said adjustment to be made effective on January 1, 2026, and January 1, 2029, January 1, 2032. The rental payments for items 4, 5, 6, and 7 of paragraph 2.A. above shall be adjusted annually, based on bids for work. C. Payments. Rent and other charges called for in this Lease Agreement shall be payable monthly, in advance. Lessor is entitled to collect from Lessee, and Lessee agrees to pay to Lessor, upon invoice, any rentals, fees, and charges set forth herein. Any rentals, fees, and charges more than thirty (30) days past due shall be subject to a service charge of one and one-half percent (1½%) 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 Agreement, 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 of more of the terms, conditions, and covenants of this Lease Agreement 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 thirty (30) days’ written notice by Lessor to Lessee, to any 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. Amended and Restated Carter House Land and Building Lease Agreement (C-4054) 3 North Valley Art League SECTION 3. UTILITIES. A. Lessee shall pay the costs for any utility services that are furnished to it at said Premises and area immediately surrounding, expressly including, but not limited to, sewer, water, electricity, natural gas, telephone, cable television, building alarm or internet services. SECTION 4. TAXES. A. Lessee shall pay promptly any taxes assessed against its personal property, and any possessory interest tax levied by reason of its occupancy of the subject Premises and the improvements constructed thereon. B. Lessee covenants and agrees to pay any and all taxes which may be levied and assessed against the leased Premises, in addition to the rental payments herein provided. Pursuant to Revenue & Taxation Code section 107.6, Lessee is advised that his Lease may create a possessory interest subject to taxation. Provided, however, that Lessee shall not be liable for increases in real property taxes that result from changes in ownership of the Premises. For the purposes of the Lease Agreement, “change in ownership” has the same definition as in California Revenue and Taxation Code sections 60-62, or any amendments or successor statutes to those sections. Lessor shall not resist Lessee’s challenge of nor appeal of property tax assessments or valuations. Any property taxes payable for the current year shall be prorated as of the date on which this Lease Agreement term commences. SECTION 5. USE OF PREMISES. A. The premises shall be used by Lessee for art gallery and office activities traditionally associated with the North Valley Art League and except as hereinafter set forth, for no other purpose. Lessee shall be required to include at least eighty (80) square feet of retail space in a prominent location of the building. Items for sale should include note cards and other gift-type items. No political and/or religious activities or uses shall be permitted on the leased Premises. In addition, no overnight lodging for any reason whatsoever shall be permitted on the leased Premises. B. No activities shall be conducted or carried on within the demised Premises in violation of any ordinance, law, statute, by law, order, or rule of any governmental agency having jurisdiction thereover. SECTION 6. HOURS. A. Lessee shall be responsible for ensuring that the art gallery is open to the public a minimum of twenty (20) hours per week. SECTION 7. COMMUNITY SERVICE. A. As additional consideration, Lessee shall be responsible for conducting sixty (60) hours annually of free instruction and tours for community groups, including thirty (30) hours in coordination with the Recreation Division. Programs and dates to be decided each June between the Community Services Director and the President of the North Valley Art League. Amended and Restated Carter House Land and Building Lease Agreement (C-4054) 4 North Valley Art League SECTION 8. COMPLIANCE WITH LAW. A. Lessee covenants and agrees to comply with all statutes, laws, ordinances, regulations, orders, judgments, decrees, directions, and requirements of Lessor, and of all Federal, State, County, and City authorities now in force or which may hereafter be in force applicable to said leased Premises. Except that Lessee shall not be obligated to comply with any that requires alterations, maintenance, or restoration to the Premises, unless the alterations, maintenance, or restoration are required as a result of Lessee’s particular and specific use of the Premises at the time. Lessor shall make any alterations, maintenance, or restoration to the Premises required by such laws that Lessee is obligated to make. 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 such ordinance or statute in the use of the Premises shall be conclusive of the fact as between Lessor and Lessee and shall subject this Lease Agreement to immediate termination at th e option of Lessor. SECTION 9. SERVICES TO THE PUBLIC. A. Lessee shall make its activities available to area residents without discrimination as to race, color, creed, religion, sex, age, or national origin, and shall refrain from imposing or levying excessively discriminatory or otherwise unreasonable rules, charges, or fees for any use of its facilities or activities; provided, however, that Lessee have the privilege to refuse admittance to any person or persons for just cause, but not to discriminate by virtue of race, color, creed, religion, sex, age, or national origin. SECTION 10. WASTE; QUIET CONDUCT. A. Lessee shall not commit nor suffer to be committed any waste upon said Premises, nor any nuisance or other act or thing which may disturb the quiet enjoyment of any other occupant or use of Lessor’s adjoining Premises. SECTION 11. MAINTENANCE. A. By entry hereunder, Lessee accepts the Premises as being in good condition and repair, and shall, upon termination of this Lease Agreement or earlier cancellation thereof, leave said Premises in as good a condition and repair as the same are now, reasonable use and wear thereof excepted. B. Lessee shall at all times keep its building and improvements in a safe, clean, neat, and sanitary condition, and shall comply with all laws, ordinances, and regulations pertaining to health and safety. C. Lessee shall be responsible for all interior maintenance of the building, including painting, window replacement if and when necessary, other minor repairs to the interior, and all maintenance and repair of Lessee’s own fixtures and furnishings. D. Lessee shall maintain any electrical appliances required or desired by Lessee in the use of said Premises. Amended and Restated Carter House Land and Building Lease Agreement (C-4054) 5 North Valley Art League E. Lessee shall maintain the interior of said Premises in a neat and clean condition at all times. F. Outdoor storage may be permitted on the leased Premises with the written permission of the Lessor. G. Lessee shall maintain Outdoor Garden Area. SECTION 12. IMPROVEMENTS; ALTERATIONS. A. Lessee shall not make or permit anyone to make any alterations, exterior decorations, additions, or improvements, structural or otherwise, in or to the Premises or the building without the prior written consent of Lessor. When granting its consent, Lessor may imp ose any conditions it deems appropriate, including, without limitation, payment of prevailing wages, the approval of plans and specifications and obtaining of specified insurance. As a condition precedent to such written consent of Lessor, Lessee agrees to obtain and deliver to Lessor written and unconditional waivers of mechanics’ and materialmen’s liens upon the land and building, of which the Premises are a part, for all work, labor, and services to be performed and materials to be furnished by them in connection with such work, signed by all contractors, subcontractors, materialmen, and laborers to be involved in such work. If, notwithstanding the foregoing, any mechanics’ or materialmen’s lien is filed against the Premises, the building, and/or the land for which work is claimed to have been done or materials claimed to have been furnished to Lessee, such lien shall be discharged by Lessee within ten (10) days thereafter, at Lessee’s sole cost and expense, by the payment thereof or by filing any bond required by law. If Lessee shall fail to discharge any such mechanics’ or materialmen’s lien, Lessor may, at its option, discharge the same and treat the cost thereof as additional rent payable with the monthly installment of rent next becoming due; it being hereby expressly covenanted and agreed that such discharge by Lessor shall not be deemed to waive or release the default of Lessee in not discharging the same. It is understood and agreed by Lessor and Lessee that any alterations, exterior decorations, additions, or improvements shall be constructed on behalf of Lessee; and that in the event Lessor gives its written consent to Lessee making any such alterations, exterior decorations, additions, or improvements, such written consent shall not be deemed to be an agreement or consent by Lessor to subject Lessor’s interest in the Premises, the building, or the land to any mechanics’ or materialmen’s liens which may be filed in respect to any such work done by or on behalf of Lessee. B. All alterations, exterior decorations, additions, or improvements, including wall-to-wall carpet, upon the Premises (whether with or without the prior written consent of Lessor) shall, at the election of Lessor, remain upon the Premises and become the property of Lessor and be surrendered with the Premises at the expiration or termination of this Lease Agreement without disturbance, molestation, or injury. Should Lessor elect that alterations, exterior decorations, additions, or improvements made by Lessee upon the Premises, including telephone or computer cabling, security systems, conduit or wiring, be removed upon expiration or termination of this Lease Agreement, Lessee hereby agrees to cause same to be removed at Lessee’s sole cost and expense. Should Lessee fail to remove the same, Lessor may cause same to be removed at Lessee’s expense, and Lessee hereby agrees to reimburse Amended and Restated Carter House Land and Building Lease Agreement (C-4054) 6 North Valley Art League Lessor for the cost of such removal, together with any and all damages which Lessor may suffer and sustain by reason of the failure of Lessee to remove the same. C. Lessee shall indemnify and hold Lessor harmless from and against any and all expenses, liens, claims, or damages to persons or property which arise directly or indirectly by reason of the making of any such alterations, exterior decorations, additions, or improvements. If any such work is done without the prior written consent of Lessor, Lessor may correct or remove the same, and Lessee shall be liable for any and all expenses incurred by Lessor in the performance of this work. All alterations, exterior decorations, additions, or improvements in or to the Premises or the building made by either party shall immediately become the property of Lessor, and shall remain upon and be surrendered with the Premises as a part thereof at the expiration or termination of the term hereof without disturbance, molestation, or injury; provided, however, that if Lessee is not in default in the performance of any of its obligations under this Lease Agreement, Lessee shall have the right to remove, prior to expiration of the term hereof, all movable furniture, furnishings, or equipment installed in the Premises at the expense of Lessee. If such property of Lessee is not removed by Lessee prior to the expiration or termination of this Lease Agreement, the same shall become the property of Lessor and shall be surrendered with the Premises as a part thereof. SECTION 13. SIGNS. A. Lessee shall be limited to a maximum of two (2) identification signs, to be approved by Lessor, which approval will not be unreasonably withheld. One sign may be placed near the front of the building at a location near the principal entrance of Lessee, and shall not exceed five (5) square feet. A second sign not exceeding five (5) feet in height nor six (6) square feet in area may be placed near the parking lot north of the premises. The freestanding sign shall be made entirely of wood or concrete to coordinate with the building. SECTION 14. PROPERTY OF LESSEE. A. Fixtures, equipment, and personal property of Lessee shall be removed by Lessee within a reasonable time after termination or earlier cancellation of this Lease Agreement; provided, however, that any fixtures which cannot be removed without damaging said Premises shall become the property of Lessor. SECTION 15. HOLD HARMLESS; INSURANCE. A. This Lease Agreement is granted upon the express condition that Lessor, its officers, agents, and employees, shall be free from any and all liability, including fines and penalties, and claims for damages for personal injury, death, or property damage in any way connected with Lessee’s use of the Premises hereunder leased, including claims of Lessee, its officers, agents, employees, members, or invitees. Lessee shall indemnify and save harmless Lessor, its officers, agents and employees, from any and all liability, loss, cost, or obligation on account of or arising out of any such injury, death, or loss caused by the negligence or other legal fault of Lessee or its officers, agents, employees, members, or invitees. B. Unless modified in writing by City’s Risk Manager, Lessee shall maintain the following noted insurance during the duration of the Contract: Amended and Restated Carter House Land and Building Lease Agreement (C-4054) 7 North Valley Art League Coverage Required Not Required Commercial General Liability X Comprehensive Vehicle Liability X Workers’ Compensation and Employers’ Liability X Professional Liability (Errors and Omissions) X Coverage shall be at least as broad as: 1. Insurance Services Office form number CG-0001, Commercial General Liability Insurance, in an amount not less than $1,000,000 per occurrence and $2,000,000 general aggregate for bodily injury, personal injury and property damage; 2. Insurance Services Office form number CA-0001 (Ed. 1/87), Comprehensive Automobile Liability Insurance, which provides for total limits of not less than $1,000,000 combined single limits per accident applicable to all owned, non-owned and hired vehicles; 3. Statutory Workers’ Compensation required by the Labor Code of the State of California and Employers' Liability Insurance in an amount not less than $1,000,000 per occurrence. Both the Workers’ Compensation and Employers' Liability policies shall contain the insurer's waiver of subrogation in favor of City, its elected officials, officers, employees, agents and volunteers; 4. The City does not accept insurance certificates or endorsements with the wording “but only in the event of a named insured’s sole negligence” or any other verbiage limiting the insured’s insurance responsibility. C. In addition, Lessee shall procure and maintain from a company authorized to do business in the State of California, and its sole cost and expense and at all times during the term of this Lease Agreement, fire insurance on the existing building, and structures to be erected on the Premises, to the full insurable value thereof, with the City of Redding named as loss payee. Lessee shall furnish to the Risk Manager of Lessor, to be approved by him prior to the commencement of the term thereof, a Certificate of insurance showing that this insurance coverage is in effect. The Certificate shall guarantee Lessor at least ten (10) days written notice of cancellation or reduction in coverage. D. It is further understood and agreed as a condition of this Lease Agreement that should Lessee hire an employee or employees, it will provide workers’ compensation insurance on its employees as required by the Labor code, and shall furnish Lessor with a Certificate evidencing such insurance. To obtain an exemption from this requirement should Lessee have no employees, Lessor shall provide the Risk Manager of Lessor 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 Amended and Restated Carter House Land and Building Lease Agreement (C-4054) 8 North Valley Art League become subject to the workers’ compensation provisions of the Labor Code, it will forthwith comply with the insurance requirements set forth above. SECTION 16. ASSIGNMENT; SUBLETTING. A. Lessee shall not assign this Lease Agreement or any interest therein, and shall not sublet the Premises or any part thereof, nor any right or privilege pertinent thereto, nor suffer any other person (the officers, agents, employees, members and invitees 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 the same or another party. Any such assignment, subletting, occupancy, or use without such consent shall be void and shall, at the option of Lessor, terminate this Lease Agreement. This Lease Agreement or any interest therein shall not be assignable as to the interest of Lessee, by operation of law, without the written consent of Lessor. Lessor will not unreasonably withhold its consent to a sublease or assignment by Lessee. SECTION 17. INSPECTION AND NOTICE. A. Insofar as the same may be necessary for the protection of Lessor’s rights, Lessor or its agents shall during normal business hours of Lessee have the right to go upon and inspect the ground area and improvements hereby leased and any and every structure or improvement erected or constructed or in the course of being erected or constructed, repaired, added to, rebuilt, or restored thereon; and also to serve, or to post and keep posted thereon, or any part thereof, any notices provided in Section 1183.1 of the Code of Civil Procedure of the State of California, or any other section of the Code of Civil Procedure of the State of California, or any other notice or notices that may at any time be required or permitted by law. SECTION 18. MATERIAL BREACH. A. Upon written notice from Lessor to Lessee that Lessee is committing a material breach of a term, covenant, or condition of this Lease Agreement, Lessee shall forthwith cure such breach. In the event that Lessee has not cured such breach within thirty (30) days following the date of mailing such written notice thereof to Lessee by Lessor, Lessor shall have the right to enter and take over the demised Premises and exclude Lessee therefrom. SECTION 19. WAIVER. A. No delay or failure by any party to exercise any right, power, or remedy with regard to any breach or default by such party under this Lease Agreement, or to insist upon strict performance of any of the provisions hereof, shall impair any right, power, or remedy of such party, and shall not be construed to be a waiver of any breach or default of the same or any other provision of this Agreement. The waiver by Lessor of any breach or default of any term, covenant, or condition herein contained shall not be deemed to be a waiver of such term, covenant, or condition, or any subsequent breach of the same, or any other term, covenant, or condition herein contained. SECTION 20. DEFAULT. Amended and Restated Carter House Land and Building Lease Agreement (C-4054) 9 North Valley Art League A. If Lessee shall be in arrears in the payment of rent for thirty (30) days or more, or if the transfer or assignment, voluntarily or involuntarily, of this Lease Agreement or any interest therein is attempted, except as herein provided, or if Lessee violates or neglects or fails to keep, observe, and perform any of the covenants, promises, or conditions herein contained which are on its part to be kept, observed, and performed, Lessor may, at its election, give Lessee written notice of such default. If such default shall continue for thirty (30) days, and Lessee has failed to commence good faith efforts to cure such default within said period and diligently prosecute the same to completion, Lessor shall have the right at any time thereafter and while such neglect or default continues to enter into or upon said Premises, or any part thereof, and repossess the same, including all buildings and improvements thereon, and expel Lessee and those claiming under Lessee, and remove their effects, forcibly if necessary, without prejudice to any remedies which might otherwise be invoked by Lessor. SECTION 21. BANKRUPTCY OR INSOLVENCY. A. If Lessee shall be adjudged bankrupt, either by voluntary or involuntary proceedings, or should be the subject of any proceedings to stay the enforcem ent 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 real property, or make an assignment for the benefit of creditors, or if said real property should come into possession and control of any trustee in bankruptcy, or if any receiver should be appointed in any action or proceeding with power to charge, possession, control, or care of said property, Lessor shall have the option to forthwith terminate this Lease Agreement, and re-enter the property and take possession thereof. In no event shall this Lease Agreement be deemed an asset of Lessee after adjudication in bankruptcy. SECTION 22. CANCELLATION. A. This Lease Agreement may be cancelled by either party at any time upon giving proper written notice twelve (12) months in advance of such cancellation. SECTION 23. SURRENDER. A. At the termination of this Lease Agreement by lapse of time or otherwise, Lessee shall surrender possession of the Premises to Lessor; deliver all keys to the Premises and all locks therein to Lessor; make known to Lessor the combination of all combination locks in the Premises; and return the Premises and all equipment and fixtures of Lessor therein to Lessor in broom-clean condition and in as good a condition as when Lessee originally took possession, ordinary wear and tear excepted, failing which Lessor may restore the Premises and such equipment and fixtures to such condition and Lessee shall pay the cost thereof to Lessor on demand. SECTION 24. ADMINISTRATION BY LESSOR. A. Whenever Lessee is required to secure the approval or consent of Lessor under this Lease Agreement, “Lessor” shall mean the City Manager of the City of Redding. However, at the option of the City Manager of Lessor, or the Lessee, any such requested approvals or Amended and Restated Carter House Land and Building Lease Agreement (C-4054) 10 North Valley Art League consents may be referred to the City Council of the City of Redding, whose decision thereon shall be final. SECTION 25. ENTIRE AGREEMENT. A. This Lease Agreement sets forth the entire agreement between the parties hereto. Modifications or additions to this Lease Agreement shall be considered valid only when mutually agreed upon by the parties in writing. SECTION 26. INVALID PROVISIONS. A. 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 its respective rights and obligations contained in the valid covenants, conditions, and provisions of this Agreement. SECTION 27. NOTICE. A. 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 c/o Director of Community Services, 777 Cypress Avenue, Redding California 96001; and to Lessee c/o North Valley Art League, 48 Quartz Hill Road, Redding, California 96003. SECTION 28. ATTORNEY’S FEES. A. In case suit or action is instituted to enforce any of the provisions of this Lease Agreement, 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. SECTION 29. BINDING ON SUCCESSORS. A. All terms, covenants, and conditions herein contained shall extend to and bind the successors and assigns of the respective parties hereto. SECTION 30. TIME OF ESSENCE. A. Time is of the essence of this Lease Agreement and of each and every provision thereof. SECTION 31. CEQA. A. The adoption of this Amended and Restated Lease is categorically exempt from environmental review under the California Environmental Quality Act pursuant to Section 15301 of Title 14 of the California Code of Regulations. This exemption permits the lease of existing public facilities when there is negligible or no expansion of use. The adoption of this Amended and Restated Lease does not expand the use of the facility beyond what was Amended and Restated Carter House Land and Building Lease Agreement (C-4054) 11 North Valley Art League originally contemplated in the lease dated April 1, 2013, as amended from time to time. This Amended and Restated Lease likewise does not expand the use of the facility by means of an extension to its term. The term of the original lease, as amended, is not impacted by the Amended and Restated Lease.” SECTION 32. AUTHORIZATION. A. The City Manager is hereby authorized to make any amendments to this Lease as is necessary to effectuate its intent. IN WITNESS WHEREOF, the parties hereto have executed this Lease Amendment in the presence of their respective officers duly authorized in that behalf on the day and year set forth above. CITY OF REDDING, A Municipal Corporation Dated: ________________, 2023 __________________________________ MICHAEL DACQUISTO, Mayor ATTEST: APPROVED AS TO FORM: BARRY E. DeWALT, City Attorney __________________________________ ___________________________________ PAMELA MIZE, City Clerk By: Barry E. DeWalt, City Attorney NORTH VALLEY ART LEAGUE Non-profit Corporation Dated: ________________, 2023 ___________________________________ By: Bonnie Lampley, President Amended and Restated Carter House Land and Building Lease Agreement (C-4054) 12 North Valley Art League Taxpayer ID No.: ___________________ Amended and Restated Carter House Land and Building Lease Agreement (C-4054) 13 North Valley Art League Amended and Restated Carter House Land and Building Lease Agreement (C-4054) 14 North Valley Art League Exhibit B. Breakout of Rent Components Section 2.A. is delineated as follows: Components Timeframe Est. Cost Time (Yrs) Annual Monthly 1. Reroofing 20 years $ 30,000.00 20 $1,500.00 $ 128.75 2. Repave Parking Lot 15 years $ 6,895.85 15 $ 459.72 $ 38.30 3. Restripe Parking Lot 5 years $ 1,591.35 5 $ 318.27 $ 26.50 4. HVAC Maintenance regular $ 1,904.48 1 $1,904.48 $ 158.70 5. Miscellaneous Repairs as needed $ 1,500.00 1 $1,500.00 $ 125.00 6. Termite / Pest Control Service regular $ 300.00 1 $ 408.00 $ 34.00 7. Janitorial Services 24 times/year $ 1,965.00 1 $1,965.00 $ 163.80 TOTAL $ 675.05