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Home My WebLink About _ 4.6(a)--Lease Amendment with Economic Development Corporation GI �" Y � F � � � ° � � � " � � CITY OF REDDING REPORT TO THE CITY COUNCIL MEETING DATE: September 19,2023 FROM: Kim Niemer, Community ITEM NO. 4.6(a) Services Director ***APPROVED BY*** � �� N,. � � � � � �P � �� in1lVi�n er, �ni nit crvle�s irectrar �3i7/2423 ry ip}�in,Ci ana � 9,�12/2423 kniemer@cityofredding.org btippin@cityofredding.org SUBJECT: 4.6(a)--Approve Lease Amendment with the Shasta County Economic Develo ment Co oration at 777 Auditorium Drive Exercising the Last One-Year O tion Recommendation Approve the Third Amendment to the Land and Building Lease Agreement (C-7786) with the Economic Development Corporation of Shasta County for City of Redding (City)-owned property located at 777 Auditorium Drive, to exercise the last of three, one-year options extending the lease term from October l, 2023, through September 30, 2024, for the monthly lease payment to the City in the amount of$3,142.53. Fiscal Impact The rent will be $37,710.36 annually. The rent revenue pays for building maintenance costs, including contract expenses for HVAC service and pest control, replacement costs for flooring, roof, and parking lot re-paving associated with this facility. Alterna�ive Action The City Council could decline to approve the lease amendment and direct staff to prepare a solicitation for a new tenant ar provide alternate direction to staff. Background/Analysis The City constructed the building in 1985 to house the Convention and Visitors Bureau operations. In June 2010, the City contracted tourism marketing services to the Shasta Cascade Wonderland Association and the offices at 777 Auditorium Drive were vacated. From November 2011 until January 2018, the building was leased to a real estate firm. Report to Redding City Council September 23,2023 Re: 4.6(a)--Lease Amendment with Economic Development Corporation Page 2 The Land and Building Lease Agreement (C-7786) dated August 24, 2018, between the City and the Economic Development Corporation of Shasta County (EDC) provided for a term of three- year lease with three additional one-year options to extend the term for a total of six years. This amendment is the third and final extension allowed. The agreement expires on September 30, 2024. In addition to the extension, there was a three percent increase in rent from $36,612.00 to $37,710.36, and new language is proposed to allow the EDC to terminate early if they continue paying the monthly rent until a new tenant is in place. Environmental Review The adoption of this lease is categorically exempt �rom 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 Lease does not expand the use of the facility. Council Priority/City Manager Goals • Budget and Financial Management — "Achieve balanced and stable 10-year Financial Plans for all funds." • Government of the 21st Century — `Be relevant and proactive to the opportunities and challenges of today's residents and workforce. Anticipate the future to make better decisions today." • 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 ^Third Amendment to Land and Building Lease Agreement(C-7786) Second Amendment to Land and Building Lease Ageement(C-7786) First Amendment to Land and Building Lease Agreement(C-7786) Land and Building Lease Agreement - 2018 (C-7786) THIRD AMENDMENT TO LAND AND BUILDING LEASE AGREEMENT (C-7?86) WITH ECONOMIC DEVELOPMENT CORPORATION WITH SHASTA COUNTY The LAND AND BUILDiNG LEASE AGREEMENT (C-7786) dated August 24, 2018, and amended on August 19, 2021, and September 19, 2022, between the City of Redding, a Municipal Corporation and General Law City, ("LESSOR"), and the Economic Development Corporation of Shasta County, a California Nonprofit Corporation, ("LESSEE"), is hereby amended as follows: Section 2A. is amended in its entirety to read: A. The term of this Lease shall commence on the Effective Date and shall expire on September 30, 2024, unless sooner terminated as provided herein. Section 2D. is amended in its entirety to read: D. In the event of early termination, Lessee is required to pay monthly rent until there is a replacement tenant. Section 3.A. is amended to read in its entirety as follows: A. Commencing on the Effective Date, and continuing throughout the remainder of the Initial Term of this Lease, LESSEE shall pay monthly rent to LESSOR in the amount of Two Thousand Eight Hundred Seventy-Five and 50/100 Dollai•s ($2,875.50). 1. Commencing October 1, 2021, through September 30, 2022, LESEE shall pay monthly rent to LESSOR in the amount of Two Thousand Nine Hundred Sixty-Two Dollars ($2,962.00). 2. Commencing October 1, 2022, through September 30, 2023, LESSEE shall pay monthly rent to LESSOR in the amount of Three Thousand Fifty-One Dollars ($3,051.00). 3. Commencing October 1, 2023, through September 30, 2024, LESEE shall pay monthly rent to LESSOR in the amount of Three Thousand One Hundred and Forty-Two and 53/100 Dollars ($3,142.53). All other terms and conditions of the Lease Agreement dated August 24, 2018, and amended on August 19, 2021, and September 19, 2022, shall remain in fi�ll force and effect. The date of this Third Amendment shall be the date that it is signed by the City. Third Amendment to Land and Building Lease Agreement C-7786 Page 1 IN WITNESS W ERECDF, The parties have executed this Third Amendment on the days and year set farth belaw:- LESS(3R; CITY OF REDDING, A Municipal Carporation Dat�d: , 2Q23 By: MICHAEL DAQUISTO, Mayor AT'I'EST: APPRI�VED AS TO �'Q12M: SARRY E. DeWALT, CITY ATTfJRNEY SHA ENE TIPT()N, City Clerk By. Sarry E. DeWalt, City Attorney LESSEE: ECON4MIC DEVEL�PMENT CO O TION OF SHASTA COUNTI', a California non-profit corporation ��.w.u,� Datea• , 2023 °"• � ��-�� B,y; Todd Jt�nes, President Third Amendmenttoland and Building Lease Agreement C=7786 Page 2 q�m � E . TRANSMITTAL FORM �� #dtY.€At9 L¢lF t�J HbL Y✓-�JFBx@9.:L/ x d.+'bf 1��t L:'F>it'S2 L d'&dP0 ri�Y I��Y A " TO CITY ATTORNEY(225-4050)&CITY CLERK(225-44 91 Agreements Q Bonds 0 Contracts 4 Leases p Escrow Instructions p Deeds p Securities p Resolutions p Ordinances p Opinians Date: 09/13/22 From: �ulie Crumrr�ett �� ;�-�,�� Dept. Name: Community Services Dept. # 641 Phone: 530-225-410�� ,� ��,� �.� Person most knowledgeable: Kim Niemer Phone: 530-225-4t��,. �� ' �� ;�� INSURANCE REQU/REMENTS MET? When submitting contract for review, you must also submit an lnsurance Transmittal Form to Risk so insurance can be requested and approved in PINS. If not, your contract will be held in the Clerk's Of�ice. For help contact Risk LiabiJity at pdahl a(�.citvofreddinq.org or(530)225-4385. DESCRIBE ATTACHED DOCUMENT�I Document Title: Second Amendment to Land and Buildinq Lease Aqreement (C-7786) outside Party(ies): Economic Development Corporation of Shasta County Project/Purpose: Lesee exercisinq option to extend the term of the lease at 777 Auditorium Dr. thr,�L�n_h_.�,9I�OJ23 COUNCIL APPROVAL REQUIRED? No .C��'es�IF YES,DATE OF MEETING: Agenda Item#: Was contract/agreement the result of an RFP or Bid? No ✓Qi'es � Bid Schedule#or RFP#: REQUEST FOR ATTORNEY SERVICES � 1�t�o1'��,�I$��i�ws I)t'�ft-All dacuments must be reviewed &apprc�ved before obtaining any signat�ares. When amending cantraets,attach a copy of ori�inal contract and all pric�r amendments. Da n�t e-rnail documents withaut prior approval. ❑ RetUT'ri dl'aftS to: (to finalize&obtain outside signatures) � ��t��°�� fl�'i��`t�I�.A��3rt��%��'�"� Fc��'r�I��t��°: �1) c3ra�r h�s b�et� �revic��sly�-�vie�v�cf � ap�3�=a�d'�y.Ptt�rn�y; (�) Lep�,has :��i�� outsic�e si�n�t��res, �'I�as� s��t�mi�2 o.�?�i��ls, Us��a�erclips -n� stapl�s -ancl a�'fix'°S��;n�ere"ta?�s an�1I s��nat�Ire s�ages. (Attorney approval mandatory-RMC§4.20.120.A) �Note: Signed originals will be forwarded to City Clerk for necessary City signatures,insurance & other requirement verification,and processing. � � Mailing/distribution Instructions: See below ,,1 _ � Prepare Certificate of Acceptance (easement&grant deeds) `` � Memo or additional info is attached. `��'� � Other: Todd Jones, MBA, President, Shasta County Economic Development Corporation, _ . 777 Auditorium Dr., Redding, CA 96001 Save for Attorney's Notes �w . � � �� .� �.,., � �,��°� n�=� � ��,�,„.,� � City Attorney Log# � ��-°�- " � �� ` C"�� Logged Out By: � h�. �� Re�.oFizo � ��-�-',� � ., ._ � ° � "a i i l I T �( --'' C I TY F I -l� l =- --' 777 Cypress Avenue, Redding, CA 96001 ,. :��- � �r PO BOX 496071, Redding, CA 96049-6071 � A L I F�� R � � "�� caty�fr�dc�ing,�rg ��v �� PAMELA M1ZE,CITY CLERK SHARLENE TIPTON,ASSISTANT CITY C�ERK 530.225.4447 530.225.4463 FAX September 29, 2022 Shasta County Economic Development Corporation Attn: Todd Jones, MBA, President 777 Auditorium Drive Redding, CA 96001 RE: Second Amendment-C-7786 Dear Todd Jones, Enclosed please find the fully executed original of the above referenced Second Amendment to Land and Building Lease Agreement by and between the City of Redding and Economic Development Corporation of Shasta County regarding lease extension. If you have any questions regarding this agreement, or if we can be of assistance, please contact the Office of the City Clerk at (530) 225-4044. Sincerely, _�~�-. _._ ,.�_ �� _ _ � �' ~ ._ _ _.� -� . — _��., � . _...�� , �� ,�. _�____.�. _ __ ____ �� ... . _. �-� -a n_ .. w_.._� ___- � Amber DalPoggetto Executive Assistant Enclosure cc; Julie Crummett Kim Niemer Ellen Grannis SECOND AMENDMENT TO LAND AND BUILDING LEASE AGREEMENT (C-7786) WITH ECONOMIC DEVELOPMENT CORPORATION OF SHASTA COUNTY THE LAND AND BUILDING LEASE AGREEMENT (G7786) dated August 24, 2018, and amended on August 19, 2021, between the CITY OF REDDING, a Municipal Corporation and General Law City, ("Lessor,") and the ECONOMIC DEVELOPMENT CORPORATION OF SHASTA COIINTY, a California Nonprofit Corporation, ("Lessee"}, is amended as follows: SecYion 2.A. is amended �o read in its entirety as follows: A. The initial term of this Lease shall cominence on the Effective Date and shall expire on September 30, 2023, unless sooner terminated as provided herein (the "Initial Term"). Lessee may, with the consent of Lessor, extend the term of this Lease for one additional period of one(1) year (the "Option Term"). Lessee shall provide notice of its intent to exercise such Option by giving Lessor written notice of Lessee's exercise of such Option at least siXty (60) days prior to the expiration of the Initial Term or immediately preceding Option Term, as the case may be. Lessor shall grant or withhold its consent to each such extension, if any, by delivering written notice thereof to Lessee within thirty(30) days following Lessor's receipt of Lessee's exercise notice. All terms, eovenants and conditions of this Lease shall remain in effect during each Option Term, except that the monthly rent shall be increased by three percent (3%) at the commencement of each Option Term, if any (and shall continue at that amount during the remainder of that Option Term). The Initial Term and all Option Terms, if any, are hereinafter sometimes referred to collectively as the "Term". Section 3.A. is amended to read in its entirety as follows: A. Commencing on the Effective Date, and continuing throughout the remainder of the Initial Term of this Lease, Lessee shall pay monthly rent to Lessor in the amount of Two Thousand Eight Hundred Seventy-Five and 50/100 Dollars ($2875.50). 1. Commencing October l, 2021, through September 30, 2022, Lessee shall pay monthly rent to Lessor in the amount of Two Thousand Nine Hundred Sixty-One and 77/100 Dollars ($2,962.00). 2. Commencing October 1, 2022, through September 30, 2023, Lessee shall pay monthly rent to Lessor in the amount of Three Thousand Fifty-One Dollars ($3,051.00). �.. � �� Page 1 of 2 °�,� ��.` � � All other terms and conditions of the Lease Agreement dated August 24, 2018, shall remain in full force and effect. The data of this Amendment shall be the date that it is signed by the City. IN WITNESS WHEREOF, the parties hereto have eXecuted this Lease Agreement on the dates and year set forth below. LESSOR: C1Ty oF R r'LDIlr�iy A Municipal Corporation � �.� Dated: ___��__�_��'�, 2022 �'�,��,�� Kristen Sc�eder, Mayor ATTEST: APPROVED AS TO FORM: BARRY E. DeWALT, City Attorney �,�. �� ;��a ��, �� EF ; 0. .�^' � .� �� PA1dIELA MIZE, . Ierk Barry E. DeWalt LESSEE: ECONOMIC DEVELOPMENT CORPORATION OF SHASTA COUNTY, a California non-pro�t corporation — �4 �� W�.��_�`��.� Dated: ��`"�. � , 2022 �..�� Todd Jones,President Page 2 of 2 C C T Y O F KIMBERLY A. NIEMER, D(RECi'OR � ��=��,,� `� = 777 Cypress Avenue, Redding, CA 96001 C A I� I F O R= N I.; ;�i! PO BOX 496071, Redding, CA 96049-6071 �� 53Q.225.4�12 I reddingrecreation.org CtJMMUNITY SERVI�ES August 30, 2022 Todd Jones, President Shasta County Economic Development Corporation 777 Auditorium Drive Redding, CA 96001 RE: Extension of Lease Agreement (C-7786) at 777 Auditorium Dr., Redding, CA Dear Mr. Jones, We have received your written request to extend the term of your lease for one additional year. Per the Contract (C-7786), the term of the lease agreement will be extended to September 30, 2023, and the monthly rent will increase to Three Thousand Fifty-One Dollars ($3,051.00) at the commencement of the term. Sincerely, , �� J �"` f�im�rly A. Niemer Director of Community Services ��,e. � Barry E. DeWalt, City ttorney Niemer, Kim �....—� From: Niemer, Kim Sent: Tuesday,August 2,2d22 4:47 PM To: 'Todd lones' Subject: RE:Shasta EDC Lease Your notice is received and accepted. Kim f Kimberly A. Ni�mer Director of Community Services City of Redding (530} 2Z5-4085 From:Todd Jones<tadd@shastaedc.org> Sent:Tuesday,August 2,2Q22 4:16 PM To: Niemer, Kim<kniemer@cityofredding.org> Subject:Shasta EDC Lease CAUTION:This email originated from outside the City of Redding; please be carefui with links or attachments. Hi Kim, I hope you are doing well. I am looking forward to discussing this more with you but didn't want to violate our option to extend the lease at 777 Auditorium Drive. At this time, we are interested in extending the lease for one more year but want to talk through some options with you before you draft an extension. We need to give you 60 days notice for our intent to extend which is today! Talk to you Friday. Thanks, Kim! Best, Todd lones, MBA President Shasta County Economic Development Corporation 777 Auditorium Dr Redding, CA 96001 Todd@shastaedc.or� C: {530)355-2860 � FIRST AMENDMENT TO LAND AND BUILDING LEASE AGREEMENT (C-7786) WITA ECONOMIC DEVELOPMENT CORPORATION OF SHASTA COUNTY THE LAND AND BUILDING LEASE AGREEMENT (C-7786} dated August 24, 2018, between the CITY OF REDDING, a Municipal Corporation and General Law City, ("Lessor,")and the ECONOMIC DEVELOPMENT CORPORATION OF SHASTA COUNTY,a California Nonprofit Corporation, ("Lessee"), is amended as follows: Section 2.A. A. The initial term of this Lease shall commence on the Effective Date and shall expire on September 30, 2022, unless sooner terminated as provided herein (the "Initial Term"). Lessee may, with the consent of Lessor, extend the term of this Lease for two additional periods of one (1) year each (each, an "Option Term"). Lessee shail provide notice of its intent to exercise such Options by giving Lessor written notice of Lessee's exercise of such Option(s) at least sixty(60}days prior to the expiration of the Initial Term or immediately preceding Option Term, as the case may be. Lessor shall grant or withhold its consent to each such extension, if any, by delivering written notice thereof to Lessee within thirty(30) days following Lessor`s receipt of Lessee's exercise notice. All terms, covenants and conditions of this Lease shall remain in effect during each Option Term, except that the monthly rent shall be increased by three percent (3%) at the commencement of each Option Term, if any (and shall continue at that amount during the remainder of that Option Term). The Initial Term and all Option Terms, if any, are hereinafter sometimes referred to collectively as the "Term". Section 3.A. A. Commencing on the Effective Date, and continuing throughout the remainder of the Initial Term of this Lease, Lessee shall pay monthly rent to Lessor in the amount of Two Thousand Eight Hundred Seventy-Five and 50/100 Dollars ($2,875.50). 1. Commencing October l, 2021, through September 30, 2022, Lessee shall pay monthly rent to Lessor in the amount of Two Thousand Nine Hundred Sixty-One and 77/100 Dollars ($2,962.00). Page 1 of 2 All other tel•ms and conditions of the Lease Agreement dated August 24, 2018, shall remain in f'�ill force and effect. The date of this Amendment shall be the date that it is sigpied by the City. 1N WITNCSS WHEREOF, the parties hereto have executed this Lease Agreement on the dates and yeai� set forth below. LESSOI2: CITY OF REDDING, A Municipal Corporation llated: , 2021 ERIN ll. RESNER, Mayor ATTEST: APPROVED AS TO FOI2M: I3ARRY E. DEWALT, City Attorney PAMELA MIZ�, City Clerlc Barry �. DeWalt LESSEE: �CONOMIC ll�V�LOPMENT CORPORATION OF SHASTA COUNTY, a California non-protit corporation , _w�- ) llated: �;�(�, ,2021 � ! Todd J , resident Page 2 oi'? LAND AND BUILDING LEASE AGREEMENT THIS LAND AND BUILDING LEASE AGREEMENT (this "Lease" or "Lease Agreement"),dated for reference purposes only as of August 24,2018,is made and entered into by and between the CITY OF REDDING, a Municipal Corporation and General Law City, hereinafter referred to as the "Lessor,"and the ECONOMIC DEVELOPMENT CORPORATION OF SHASTA COUNTY, a Califomia Nonprofit Corporation, hereinafter referred to as "Lessee". This Lease shall be effective as of the date and year it is signed and delivered by both Lessor and Lessee(the"Effective Date"). WITNESSETH: WHEREAS, Lessor owns certain land, and improvements thereon consisting of approximately 2,130 square feet of space, commonly known as 777 Auditorium Drive, Redding, California, and more particularly described and shown on Exhibit"A" attached hereto and by this reference made a part hereof(the"Premises"); WHEREAS, the Premises are not needed for municipal purposes in the immediate future; and WHEREAS,Lessor desires to lease the Prernises to Lessee,and Lessee desires to lease the Premises from Lessor, on the terms and conditions set forth herein. NOW, THEREFORE,IT IS AGREED by and between the parties hereto as follows: 1. AGREEMENT TO LEASE Lessor hereby leases the Premises to Lessee, and Lessee hereby leases the Premises from Lessor,upon and subject to all of the terms,conditions,covenants and agreements set forth herein. 2. TERM;POSSESSION A_ T'he initial term of this Lease shall commence on the Effective Date and shall expire on September 30, 2021,unless sooner terminated as provided herein(the "Initial Term"). Lessee may, with the consent of Lessor, extend the term of this Lease for three additional periods of one (1) year each (each, an "Option Term"). Lessee sha11 provide notice of its intent to exercise such Options by giving Lessor written notice of Lessee's exercise of such Option(s)at least sixty(b0)days prior to the expiration of the Initial Term or immediately preceding Option Term, as the case may be. Lessor shall grant or withhold its consent to each such extension, if any, by delivering written notice thereof to Lessee within thirty(30) days following Lessor's receipt of Lessee's exercise � notice. All terms,covenants and conditions of this Lease shall remain in effect during � each Option Term, except that the monthly rent shall be increased by three percent � (3%} at the commencement of each Option Term, if any (and shall continue at that � amount during the remainder of that Option Term). The Initial Term and all Oprion � � �-�'�QV� �O �� Shasta EDC lease Page 2 Terms, if any, are hereinafter sometimes referred to collectively as the "Term". B. Lessee shall be entitled to terminate this Lease,upon thirty(34) days written notice to Lessor,in the event of a material reduction in Lessee's funding in any fiscal year during the Term. For purposes of this Lease, Lessee shall be deemed to have suffered a material reduction in its funding if Lessee's annual revenues during any fiscal year of Lessee during the Term are, or are expected to be, less than ninety percent (90%) of Lessee's annual revenues during the preceding fiscal year of Lessee. Lessee's failure to exercise such termination right with respect to any given fiscal year during the Term sha11 not operate as a waiver of Lessee's right to terminate this Lease with respect to any later fiscal year during the Term. C. Lessee shall be given possession of the Premises upon the Effective Date. 3. RENT AND OTHER CHARGES A. Commencing on the Effective Date, and continuing throughout the remainder of the Initial Term of this Lease, Lessee shall pay monthly rent to Lessor in the amount of Two Thousand Eight Hundred Seventy-Five and 50/100 Dollars ($2,875.54). Notwithstanding the foregoing, if the Effective Date is prior to September 1, 2018, Lessee's rent obligations hereunder shall not commence until September 1, 2018. B. Rent shall be payable, monthly, in advance, on or before the first (1 S`} day of each calendar month during the Term. Except as otherwise provided in Section 3_A, in the event this Lease commences or the date of expiration or termination of this Lease occurs other than on the first or last day of a calendar month, the rent for such month shall be prorated based upon the actual number of days of such month. Lessor is entitled to collect from Lessee, and Lessee agrees to pay Lessor, upon invoice, any other fees and charges set forth herein. Any rentais,fees, and charges more than thirty (30) days past due sha11 be subject to a service charge of one and one-half(1.5%}per month, based on an annual rate of eighteen percent (18%}, or the maximum rate allowed by law, if lower. 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, if Lessor is required or elects to pay any sum or sums or incurs any obligation or expense by reason of a failure,neglect,or refusal of Lessee to perform any one or more of the terms,conditions, covenants of this Lease,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 an instaliment 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 herein above. 4. UTILITIES AND WA�'ER Shasta EDC lease Page 3 Lessee shall pay for the following separately metered or invoiced utility services supplied to Lessee at the Premises: sewer, electricity (including electricity for any exterior lights on the building),natural gas,solid waste,telephone,security, and cable television. Lessee shall also pay for all domestic and landscaping water supplied to Lessee at the Premises through City of Redding Water Meter No. 18437824 (but not for any landscaping water supplied through any other water meter). Lessor shall be responsible for the cost of any landscaping water provided through any other water meter. 5. TAXES A. Lessee shall promptly pay any taa�es assessed against its personal property, and any possessory interest t� levied by reason of its occupancy of the subject Premises. B. Lessee is advised pursuant to Revenue and Taxation Code 107.6 that a possessory interest subject to taxation may be created by the grant of this Lease to Lessee. C. In the event a possessory interest subject to taxation is created by this Lease, Lessee sha11 apply for any available exemption to the obligarion to pay possessory interest ta�ces in connection with this Lease. 6. USE OF PREMISES A. The Premises shall be used by Lessee for the normal and custornary acrivities related to a business office of Lessee and for no other purpose without the prior written consent of Lessor, which shall not be unreasonably withheld. In addition, no overnight lodging for any reason whatsoever sha11 be permitted on the leased Premises_ B. It is the intent of this Lease Agreement that the Premises sha11 be used primarily for office functions,and shall not generally include entertainment, lodging,retail, food or beverage services_ Notwithstanding the foregoing,Lessee sha11 be entitled to conduct business social and other events at the Premises where food and beverages are served and/or which involve the use of music or public-address systems in the building and parking lot. Lessee will take precautions not to inconvenience or disturb the surrounding occupants as a result of any such activities. C. No activities shall be conducted or cazried on within the demised Premises in violation of any ordinance,law,statute,bylaw,order,or rule of any governmental agency having jurisdiction thereover. Lessor represents and warrants to Lessee that Lessee's proposed use of the Premises are permitted by the applicable zoning and other land use regulations applicable to the Premises,and will not violate any recorded or unrecorded covenants,conditions, or restrictions applicable to the Premises. Shasta EDC lease Page 4 7. COMPLIANCE WITH LA WS A. Lessor hereby advises Lessee that the Premises have not undergone inspection by a Certified Access Specialist (CASp), and makes the following additional disclosure to Lessee pursuant to California law: "A Certified Access Specialist ("CASu') can inspect the subject premises and determine whether the subject premises comply with all of the applicable construction-related accessibility standards under state law. Although state law does not require a CASp inspection of the subject premises, the commercial property owner or lessor may not prohibit the lessee or tenant from obtaining a CASp inspection of the subject premises for the occupancy or potential occupancy of the lessee or tenant, if requested by lessee or tenant. The parties shall mutually agree on the arrangements for the time and manner of the CASp inspection,the payment of the fee for the CASp inspection, and the cost of making any repairs necessary to correct violations of construction-related accessibility standards within the premises." B. Lessor represents and warrants to Lessee that the Premises are in compliance with all Federal, State, and local laws, statutes, ordinances, codes, rules, orders, judgments, decrees, and governmental regulations or requirements applicable to or affecting the Premises (including, but not limited to, all "construction related accessibility standards" as defined in California Civil Code§55.52(a)(6),as amended)(collectively, the "Applicable Laws"). If it is determined that the Premises do not comply with the foregoing representation and warranty, or if any of the Applicable Laws are hereafter amended so as to require the construction of any addition to or alteration of the Premises, Lessor shall rectify the deficiency,or construct such addirion to or alteration of the Premises, at Lessor's expense. C. Lessor shall indemnify, defend and hold Lessee harmless against any and all claims, demands, liabilities, damages, lawsuits, causes of action (whether in tort or contract, law or equity, or otherwise}, fines, penalties, losses, costs and expenses (including attomey's fees and court costs)arising out of or relating to any failure of the Premises to comply with any Applicable Laws. D. During the Term of this Lease, Lessee shall comply with a11 Federal, State, and local laws, statutes, ordinances, and regulations applicable to Lessee`s specific use of the Premises(except that Lessee shall not be obligated to comply with any Applicable Law that requires alterations or improvements to the Premises,all of which shall be Lessor's responsibility pursuant to Section 7.B, above). Shasta EDC lease Page 5 8. SER VICES TO THE PUBLIC Lessee shall make its activities and services 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 the facilities or activities; provided, however, that Lessee shail 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. 9. WASTE AND QUIET CONDUCT Lessee shall not commit nor permit to be committed,any waste upon the Premises,nor any nuisance or other act or thing which may disturb the quiet enjoyment or use of adjoining parcels by others. So long as Lessee pays the rent, and performs all other obligations of Lessee hereunder, Lessor agrees that Lessee sha11 have quiet possession and enjoyment of the Premises for the entire Term hereof, free of any claim or other action by Lessor or anyone claiming by,through or under Lessor. 10. MAIN7'ENANCE A. Except as otherwise provided herein, Lessee accepts the Premises as being in good condition and repair, and sha11, upon expiration of this Lease or earlier termination thereof, leave said Premises in as good a condition and repair as the same are now, reasonable use and wear thereof excepted. B. During the Term of this I.ease, Lessor shall, at Lessor's expense, maintain, repair and/or replace, if necessary, the foundations, structural portions of the bearing wa11s, roofing system, roof coverings, plumbing, heating, air conditioning, ventilating, electrical and lighting fixtures and equipment, exterior surfaces of all walls, skylights, exterior landscaping,and all sidewalks,driveways,parking areas and fences located on the Premises. C. During the Term of this Lease, and except as provided in Section 10.B, above, Lessee sha11, at Lessee's expense, maintain and repair the interior of the building, including janitorial work, 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 owned by Lessee and required or desired by Lessee in the use of said Premises. E_ Lessee shall arrange and provide its own janitorial services to maintain the interior of said Premises in a neat and clean condition at a11 times. Shasta EDC lease Page 6 F. No outdoor storage shall be permitted on the leased Premises, nor is the keeping of animals permitted. 11. USE OF PREMISES AND PARKING Throughout the Term of the lease,Lessor shall have access to the interior of the building on the Premises for the purpose of a public safety staging area on the Fourth of July Freedom Festival, and five (5) onsite parking spaces situated between the driveways during Kool April Nites weekend and the community Fourth of July Freedom Festival. The parties confirm and agree that Lessor shall not have access to the interior of the building on the Premises except on July 4`b of each year during the Term. Lessor shall provide five (5) calendar days written notice to Lessee of its election to reserve the Premises and/or parking spaces pursuant to this Section. Lessor shall indemnify, defend and hold Lessee, and its officers, agents and employees, harmless from and against any claims, demands, actions, damages, liabilities, loss,cost or expense arising out of any use of the Premises by Lessor pursuant to this Secrion. 12. INfPROVE�iENTS;ALTERATIONS A. Lessee shall not make or permit anyone to make any alterations,decorations,additions, or improvements, structural or otherwise, in or to the Premises or the building without the prior written consent af Lessor,which shall not be unreasonably withheld. When granting its consent, Lessor may impose any condition it deems reasonable and appropriate, including, without limitation, the approval of plans and specifications, conditioning approval upon Lessee's commitment to replace and/repair any portion of the Premises for which an alteration, decoration, addition or improvement was approved, and/or imposition of insurance requirements in addition to those required herein. Lessor hereby consents to the alterations, additions and/or improvements to the Premises by Lessee described in Exhibit "B" attached hereto and by this reference made a part hereof, and no further consent of Lessor shall be required in connection therewith(provided that Lessee shall obtain all building permits required to complete such work). Whether or not Lessor s consent is required,Lessee agrees to obtain and deliver to Lessor written and unconditional waivers of inechanics' and materialmen's liens upon the land and building, of which the Premises are a part, for all work, labor and services performed and materials fumished by them in connection with such work, signed by all contxactors, subcontractors,materialmen,and laborers involved with 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 done or materials claimed to have been fumished to Lessee, such lien shall be discharged by Lessee within thirty (30) days thereafter, at Lessee's sole cost and expense, by the payment thereof or by filing any bond required by law. If Lessee sha11 fail to dischazge 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 Shasta EDC lease Page 7 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 written consent to Lessee making any such alteration, exterior decorations, additions, or improvements, such written consent sha11 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. 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 I,essor,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 or within ten(10) days after the expiration or earlier termination of the Term hereof, all furniture, fixtures, fumishings, and equipment, installed in the Premises at the expense of Lessee_ If such property of Lessee is not removed by Lessee within such time geriod, the same shall become the property of Lessor and shall be surrendered with the Premises as part thereof. 13. SIGNS Lessee may place signage at the existing street location and on the building over the City seal. Other signage may be permitted as allowed through the Lessor's sign permit process. The Lessee may use the flag poles to display various flags that are in support of its mission in economic development or express our patriotism for this nation or our state. 14. PROPERTY OF LESSEE Fixtures,equipment, and personal property of Lessee shall be removed by same within ten (10) days after the expiration or eazlier termination of this Lease Agreement; provided, however, that any fixture which cannot be removed without damaging said Premises shall become the property of Lessor. Shasta EDC lease Page 8 15. HOLD HARMLESS;LESSEE'S LIABILITYINSURANCE A. This Lease Agreement is granted upon the express condition that, except as otherwise provided herein, Lessor, its officers, agents and employees, shall be free from any and all liability and claims for damages for personal injury, death, or property damage in any way connected with Lessee's use of the Premises, including claims of Lessee, it's officers, agents, employees, members, or invitees. Notwithstanding the foregoing, Lessor shall indemnify, defend and save hazrnless Lessee, its officers, agents and employees, from any and all liability, damages, loss, cost or expense on account of or arising out of any such injury, death, or loss caused by the negligence or other legal fault of Lessor or its officers, agents, employees, �nembers 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(provided,however,that Lessee shall have no liability to Lessor for any damage to the Premises or any alterations made by Lessee caused by fire or other casualty that would be covered by a policy of insurance described in Section 16_B(1),below,and,in the event of any such damage,Lessor shall rely solely on Lessor's self-insurance and/or the proceeds of tl�e insurance policies, if any,maintained by Lessor and/or Lessee pursuant to Section 16,below). B. Unless modified in writing by City's Risk Manager, Lessee shall maintain the following noted insurance during the duration of the Contract: Coverage Required Not Reauired Commercial General Liability X Comprehensive Vehicle Liability X Workers' Compensation and Employers' X Liability Professional Liability{Errors and Omissions) X (Place an"x"in the appropriate box) C. Coverage shall be at least as broad as: l. 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 agb egate 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 af not less than $1,000,000 combined single limits per accident applicable to all owned, non-owned and hired vehicles; Shasta EDC lease Page 9 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_ D_ Any deductibles or self-insured retentions must be declared to and approved by City. At the option of the City,either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City,its elected officials,officers,employees, agents and volunteers; or the Lessee shall procure a bond guaranteeing payment of losses and related investigations,claims administration and defense expenses. E_ The General Liability insurance required by this Section 15 shall contain or be endorsed to contain the following provisions: l. City, its elected officials, officers, employees, and agents are to be covered as additional insured as respects liability arising out of work or operations performed by or on behalf of Lessee; premises owned, leased or used by Lessee; or automabiles owned, leased, hired or borrowed by Lessee. The coverage shall contain no special limitations on the scope of protection afforded to City,its elected officials, officers, employees, agents and volunteers. 2. The insurance coverage of Lessee shall be primary insurance as respects City, its elected officials, officers, employees, agents and volunteers. Any insurance or self-insurance maintained by City, its elected officials,officers, employees,agents and volunteers, shall be in excess of Lessee's insurance and shall not contribute with it. 3. Coverage shall state that the insurance of Lessee shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 4_ Each insurance policy required by this Section 15 shall be endorsed to state that coverage shall not be canceled except after thirty(30)calendar days' prior written notice has been given to City. In addition,Lessee agrees that it shall not reduce its coverage or limits on any such policy except after thirty(30) calendar days' prior written notice has been given to City. F. Insurance is to be placed with insurers with a current A.M.Best's rating of no less than A-VII. Shasta EDC lease Page 10 G_ Lessee shall designate the City of Redding as a Certificate Holder of the insurance. Lessee shall furnish City with certificates of insurance and original endorsements effecting the coverages required by this clause. Certificates and endorsements shall be furnished to: Risk Management Department, City of Redding, 777 Cypress Avenue, Redding,CA 96001.The certificates and endorsements for each insurance policy are to be signed by a person authorized by the insurer to bind coverage on its behalf. All endorsements are to be received and approved by the City's Risk Manager prior to the commencement of contracted services. City may withhold payments to Lessee if adequate certificates of insurance and endorsements required have not been provided, or not been provided in a timely manner. H. The requirements as to the types and limits of insurance coverage to be maintained by Lessee as required by this Section 15, and any approval of said insurance by City, are not intended to and will not in any manner limit or qualify the liabilities and obligations otherwise assumed by Lessee pursuant to this Contract, including, without limitation, provisions conceming indemnification. I. If any policy of insurance required by this Section is a"claims made"policy,pursuant to Code of Civil Procedure§342 and Government Code§945.6,Lessee shall keep said insurance in effect for a period of eighteen (18) months after the expiration or termination of this Lease. J. If any damage, including death, personal injury or property damage, occurs in connection with the performance of this Lease,Lessee shall immediately notify City's Risk Manager by telephone at (530) 225-4068. No later than three {3) calendar days after the event, Lessee shall submit a written report to City's Risk Manager containing the following information, as applicable: 1) name and address of injured or deceased person(s); 2} name and address of wimesses; 3) name and address of Lessee's insurance company; and 4)a detailed description of the damage and whether any City property was involve�. 16. PROPERTY DAMAGE INSURANCE; WAIVER OF CLAIMS; WAIVER OF SUBROGATION A. During the Term of this Lease,Lessor shall,at its expense,either(1}obtain and keep in force a policy of standard fire,extended coverage and special form(all risks)insurance, including demolirion and ordinance and law coverages, written on a replacement cost new basis,with no deductible, covering the Premises and any alterations thereto made by Lessee,(2)self-insure against loss or damage to the Premises and alterations arising out of the risks which would otherwise be covered by a policy of the type described in Section 16.A(1}, above, or (3) protect against loss or damage to tl�e Premises and alterations arising out of such risks through a combination of self-insurance (whether by way of a high deductible, self-insured retention, or otherwise) and a policy of standard fire, extended coverage and special form (all risks) insurance covering the Premises and alterations. Shasta EDC lease Page 11 B. Lessor hereby releases and relieves Lessee, and its subtenant(s), if any, and their respective officers, directors, agents, employees, customers and invitees, and covenants not to sue and waives its right to recover damages from such persons and entities, for any loss or damage to the Premises and/or any alterations made by Lessee that is,would be,or would have been covered by(1)a policy of standard fire,extended coverage and special form (all risks) insurance, including demolition coverage and ordinance and law coverages A, B, and C with limits of no less than $250,000_00, written on a replacement cost new basis,with no deductible,covering the Prernises and any alterations made by Lessee,or(2)by any policy of insurance covering the Premises (with or without coverage for any alterations made by Lessee) actually maintained by Lessor. In the event Lessor maintains a policy of insurance covering loss or damage to the Premises (with or without coverage for any alterarions made by Lessee), whether primary, excess, or other, Lessor shall obtain from its insurance camer, and deliver to Lessee, a waiver of any right to subrogation such carrier may have against Lessee, and/or its subtenant(s), if any, and/or their respective officers, directors, agents, employees, customers and invitees. C. The parties acknowledge that Lessor desires that Lessee obtain a separate policy of fire and extended coverage insurance covering the Premises and any alterations thereto made by Lessee (i.e., in addition to the insurance and/or self-insurance maintained by Lessor as provided for in this Section lb,above). Lessee is currently unable to obtain such insurance due to a moratorium on the issuance of new property damage insurance policies as a result of the recent Carr Fire. Lessee shall,at least once every ninety(90) days during the Term, use commercially reasonable efforts to investigate the availability and cost of a separate policy of standard fire and extended coverage insurance covering the Premises and any alterations thereto made by Lessee with a deductible of One Thousand and 00/100 Dollars ($1,OOQ.00) or less, and otherwise meeting the requirements of this Section 16.C, below. In the event Lessee is able to obtain such a policy from an insurance carrier atlmitted in the State of California, Lessee shall purchase and maintain such policy of insurance in effect. Any such policy of insurance obtained by Lessee sha11 be in the name of Lessee with Lessor named as an additional insured. Any such policy of insurance obtained by Lessee shall also be primary with respect to any covered damage to the Premises or alterations (and any insurance or self-insurance covering the Premises and alterations maintained by I,essor pursuant to this Section 16, above, shall be excess). Lessor shall, upon request, provide such informarion, execute such dacuments and instruments, and otherwise take such action as may be necessary or desirable for Lessee to obtain such insurance coverage. Lessee shall provide Lessor with a certificate of insurance evidencing any policy of insurance obtained by Lessee hereunder. Shasta EDC lease Page 12 D. In the event this Lease is not terminated as a result of any damage to or destruction of the Premises pursuant to Section 22, below, the proceeds of the insurance maintained by Lessor (and by Lessee, if any) pursuant to this Section 16 shall be used to repair and/or restore the Premises and/or Lessee's alterations. 17. ASSIGNMEIVT AND SUBLETTING A_ Lessee shall not voluntarily assign or encumber Lessee's interest in this Lease Agreement or in the Premises, or sublease all or any part of the Premises, or allow any other person or entity(except Lessee's authorized representatives)to occupy or use a11 or any part of the Premises, without first obtaining Lessor's prior written consent, which shall not be unreasonably witt�held. Notwithstanding the foregoing. Lessee shall be entitled to do the following without obtaining the consent af Lessor: (a)rent or otherwise provide co-working space in the Premises to individuals or entities; and {b) rent or sub-lease space in the Premises to one or more individuals or entities engaged in workforce development or other activities that are aligned with or supportive of Lessee's economic development activities. Except as provided above, any assignment, encumbrance, or other sublease without Lessor's consent shall be voidable and, at the sole election of Lessor, sha11 constitute a default of this Lease Agreement.No consent to any assignment,encumbrance,or sublease,sha11 constitute a further waiver of the provisions of this Section. If Lessee consists of more than one person, a purported assignment, voluntary, involuntary, or by operation of law, from one person to the other shall be deemed a voluntary assignment. B. No interest of Lessee in this Lease Agreement shall be assignable by operation of law (including, without limitation, the transfer of this Lease Agreement by testacy or intestacy). Each of the following acts shall be considered an involuntary assignment: 1. If Lessee is or becomes bankrupt or insolvent,makes an assignment for the benefit of creditors,or institutes a proceeding under the Bankruptcy Act in which Lessee is the ba.nkrupt; or, if Lessee is a partnership or consists of more than one person or entity, if any partner of the partnership, or other person or entity is or becomes bankrupt or insolvent,or makes an assignment for the benefit of creditors; 2. If a writ of attachment or execution is levied on this Lease Agreement; 3_ If, in any proceeding or action to which Lessee is a party, a receiver is appointed with authority to take possession of the Premises. C. An involuntary assignment shall consritute a default by Lessee, and Lessor shall have the right to elect to terminate this Lease Agreement, in which case this Lease Agreement shall not be treated as an asset of Lessee. Shasta EDC lease Page 13 18. LESSOR'S ENTRY ON PREMISES A. Lessor and its authorized agents and employees,upon 24 hours'prior notice to Lessee, shall have the right to enter the Premises at all reasonable times to determine whether the Premises are in good condition and whether Lessee is complying with Lessee's obligarions under this Lease Agreement_ B. Lessor shall not be liable in any manner for any inconvenience, disturbance, loss of business, nuisance, or other damage arising out of Lessor's entry on the Premises as provided in this Section. Lessee shall not be entitled to an abatement or reduction of rent if Lessor exercises any rights reserved in this Section. Lessor shall conduct its activities on the Premises as allowed in this Section in a manner that will cause the least possible inconvenience, annoyance or disturbance to Lessee. 19. WAIVER No delay or omission in the exercise of any right or remedy of Lessor on any default by Lessee shall imgair such a right or remedy or be construed as a waiver. The receipt and acceptance by Lessor of delinquent rent shall not constitute a waiver of any other default, but it shall constitute a waiver of timely payment of the particular rent payment involved_ No act or conduct of Lessor,including,without limitation,the acceptance of the keys to the Premises or the combination to any combination locks on the Premises, shall constitute an acceptance of the surrender of the Premises by Lessee before the expiration of the Term or extension of the Term of this Lease Agreement. Except as otherwise provided herein,only a notice from Lessor to Lessee shall constitute acceptance of the surrender of the Premises and accomplish a termination of this Lease Agreement. Lessor's consent to or approval of any act by Lessee requiring Lessor's consent or appraval shall not be deemed to waive or render unnecessary Lessor's consent to or approval of any subsequent act by Lessee. Any waiver by Lessor or any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Lease Agreement. 20. DEFAULT The occurrence of any of the following shall constitute a material default by Lessee: A_ Failure to pay rent when due, if the failure continues for five (5) calendar days after notice has been given to Lessee by Lessor. B. Failure to perform any other provision of this Lease Agreement if the failure to perform is not cured within ten (10} calendar days after notice has been given to Lessee_If the default cannot be reasonably cured within ten(10)calendar days,Lessee shall not be in default of this Lease Agreement if Lessee commences to cure the default witl�in the ten (10) calendar day period and diligently and in good faith continues to cure the default. Shasta EDC lease Page 14 C. Notices given under this Section shall specify the alleged default and the applicable provisions of this Lease Agreement, and shall demand that Lessee perforrn the provisions of this Lease Agreement or pay the rent that is in arrears, as the case may be,within the applicable period of time, or quit the Premises. No such notice shall be deemed a forfeiture or a termination of this Lease Agreement unless Lessor so elects in the notice. The purpose of the norice requirements set forth in this Section is to extend the notice requirements of the unlawful detainer statutes in California_ 21. EMINENT DOMAIN A. In the event all of the Premises shall be appropriated or taken under the power of eminent domain by any public or quasi-public authority, or is sold, transferred or conveyed in lieu thereof, this Lease Agreement shall terminate and expire as of the date of such taking, and Lessee shall thereupon be released from any liability thereafter accruing under this Lease Agreement. B. In the event a portion of the Premises is taken under the power of eminent domain by any public or quasi-public authority,or is sold,transferred or conveyed in lieu thereof, such that the improvements thereon cannot, in Lessee's opinion, be used for its intended purposes,Lessee shall have the right to terminate this Lease Agreement as of the date Lessee is required to vacate a portion of the Premises, upon the giving of notice in writing of such election within thirty(30)days after said Premises have been so appropriated or taken_ In the event of such termination, both Lessor and Lessee shall thereupon be released from any liability thereafter accruing hereunder. In the event of a partial taking of the Premises, or a sale,transfer or conveyance of a portion of the Premises in lieu thereof, and Lessee does not elect to terminate this Lease, the monthly rent and other charges payable hereunder shall be proportionately abated according to the ratio that the part of the Premises remaining useable by Lessee after the taking bears to the total area of the Premises prior to the taking. Lessor agrees, immediately after learning of any appropriation or taking, to give Lessee notice thereof in writing. C. If the Premises are taken, or Lessee elects to terminate upon a partial taking, Lessor agrees to offer to lease to Lessee similar space on similar terms for a term equal to the remaining Term hereunder, if any such land is available for lease at the Diestelhorst Landing Office Park. D. If this Lease Agreement is terminated in either manner herein above provided,Lessor sha11 be entitled to the entire award or compensation for the land in such proceedings, but the rent and other charges for the last month of Lessee's occupancy shall be prorated and Lessor agrees to refund to the vacating party any unused portion of said rent or other charges paid in advance. Lessee's right to receive compensation or damages for its improvements, fixtures, personal property, and of the moving or relocation expenses shall not be affected in any manner hereby, and Lessee reserves Shasta EDC lease � Page 15 the right to bring an action for such compensation or damages, including loss of business, leasehold interest, and other reasonable damages. 22. DAMAGE OR DESTRUCTION In the event the Premises or any part thereof are at any time damaged or destroyed by fire, casualty or other cause, the facilities shall be repaired, restored or rebuilt, or not repaired, restored or rebuilt, in accordance with the following terms and conditions: A_ In the event the estimated cost to repair,restore andJor rebuild the Premises exceeds the sum of Two Hundred Fifiy Thousand Dollars($250,000),Lessor and Lessee shall both have the right to terminate this Izase by giving written notice to the other within thirty (30)days after the occunence of the damage or destruction,in which event,the Term of this Lease shall expire as of the date of the damage or destruction and Lessee shall vacate the Premises and surrender the same. In such event, Lessor shall return to Lessee any rent and/or other chazges paid by Lessee to Lessor with respect to periods after the date of the damage or destruction. B. In the event the estimated cost to repair, restore and/or rebuild the Premises does not exceed the sum of Two Hundred Fifty Thousand Dollars($250,000),or neither Lessor nor Lessee elect to terminate this Lease pursuant to Section 22.A, above, Lessor shall, at Lessor's sale cost and expense,promptly repair,restore or rebuild the Premises to the same condition as the Premises were in prior to such damage or destrucrion. C. In the event the Premises are damaged by fire or any other cause and this Lease is not terminated pursuant to the terms herein, the rent and all other charges payable by Lessee hereunder shall abate during the period of repair,restoration and/or rebuilding if the Premises are untenantable, and such rent and other charges shall abate on a prorata or other equitable basis if the Premises are partially tenantable by Lessee during such period. 23. BANKR UPTCY OR INSOL VENCY If L,essee shall be adjudged bankrupt, either by voluntary or involuntary proceeding, or should be subject of any proceedings to stay the enforcement 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 the Premises,or make an assignment for the benefit of creditors,or if the Premises 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 take charge, possession, control, or care of the Premises, Lessor shall have the option to forthwith terminate this Lease Agreement,and re-enter the Premises and take possession thereof. In no event shall this Lease agreement be deemed an asset of Lessee after adjudication in bankruptcy. Shasta EDC lease Page 16 24. SURRENDER �F PREMISES On the expiration, cancellation or termination of this Lease Agreement, Lessee shall surrender possession of the Premises to Lessor, deliver all keys to the locks on the Premises, and make known to Lessor the combination of all combination locks on the Premises. Lessee shall 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 teaz excepted, failing which Lessor may restore the Premises and such equipment and fi�ctures to such condition and Lessee shall pay the cost thereof to Lessor on demand_ The parties confirm and agree the Lessee's obligations under the preceding sentence shall not apply in the event of any termination of this Lease as a result of any damage to or destruction of the Premises or upon any expiration of this Lease following any damage to or destruction of the Premises. 25. ADMINISTRATIONBYLESSOR Whenever Lessee is required to secure the approval or consent of Lessor under this Lease Agreement, "Lessor" shall mean the Director of Community Services of the City of Redding_ 26. ENTIRE AGREEMENT AND MODIFICATION OR AMENDMENT This Lease Agreement, which includes all exhibits attached hereto and incorporated by reference herein, contains all the representations and the entire understanding and agreernent between the parties pertaining to the Premises or any other matters connected therewith. This Lease Agreement shall not be altered, amended or modified except by a writing signed by Lessor and Lessee. The Director of Community Services is delegated authority to amend this Lease in any manner which does not result in a decrease in the rent due under this Lease. 27. INYALID PROVISIONS In the event any covenant, condition, or provision herein contained is held invalid by any Court of competent jurisdiction,the invalidity of the same sha11 in no way effect any other covenant, condition, or provision herein contained. 28. NOTICES All notices and other communications authorized or required under this Lease Agreement shall be in writing and shall be given by(a)personal delivery,(b)mailing by certified mail or registered mail,retum receipt requested,postage prepaid,or United States express mail, or (c} delivery by commercially recognized courier service. Any such notice or other communication shall be deemed to have been given on the date of delivery or refusal to accept delivery if addressed as follows: Shasta EDC lease Page 17 LESSEE LESSOR Shasta EDC City of Redding ATTN: Tony Giovaniello ATTN: Community Services Director 777 Auditorium Drive 777 Cypress Avenue Redding,California 96001 Redding, California 96001 Either party may change its address for the purposes of this Section by giving written notice of such change to the other party in the manner provided in this Section. 29. ATTORNEYS'FEES In the event of any legal action,arbitration or other proceeding arising out of this Lease,the prevailing party shall be entitled to its reasonable attomey's fees and costs in addition to any other relief to which it may be entitled. 30. BINDING ON SUCCESSORS Subject to the provisions in this Lease Agreement respecting assignment or subletting, all covenants, terrns and conditions in this Lease Agreement shall extend to and bind the successors,heirs, and assigns of the respective parties to this Lease Agreement. 31. TIME DF ESSENCE Time is of the essence of this Lease Agreement and of each and every provision in this Lease Agreement 32. LESSOR'S WARRANTY OF AUTHORITY Lessor has the legal power, right and authority to enter into this Lease, and all requisite acrion (municipal or otherwise)has been taken by Lessor in connection with the entering into of this Lease. No further consent of any council, board, management or other committee,beneficiary,creditor,judicial or administrative body,authority or other party is required. Lessor's execution and delivery of this Lease, and the performance of its obligations hereunder, will not conflict with or violate any statute, law, municipal code, rule, regulation, or policy applicable to Lessor or the Premises. Lessor has complied with all statutes,laws,ordinances,rules,and regulations applicable to Lessor and/or the lease of the Premises by Lessor to Lessee hereunder, and has satisfied all conditions precedent to such lease required by law_ This Lease is and shall be a valid, legally binding obligation of and enforceable against Lessor in accordance with its terms. Shasta EDC lease Page 18 33. NO PARTY DEEMED DRAFTER In the event of a dispute between any of the parties hereto over the meaning of this Lease, no party shall be deemed to have prepared this Lease,and the principle of law that contracts are construed against the drafter shall not apply. 34. RECORDING Lessor shall, promptly following the Effective Date, record this Lease in the Official Records of Shasta County, Califomia in accordance with Califomia Government Code Section 37393. 35. COUNTERPARTS This Lease may be executed in one or more counterparts,each of which sha11 be deemed an original, but all of which together shall constitute one and the same instrument. The execution pages of counterparts may be attached to any one copy of this Lease to form a single,complete document. (SIGNA7'URE PAGE FOLLOWS) Shasta EDC lease Page 19 IN WITNESS WHEREOF, the parties hereto have executed this Lease Agreement on the dates and year set forth below. "LESSOR": CITY OF REDDING, A Municipal Corporation � Dated: ,2018 � � By: STEN REDER,Mayor By: B TI , City Manager APPROVED AS TO FORM: BARRY E. DEWALT, City Attorney By: Barry E. DeWalt "LESSEE": ECONOMIC DEVELOPMENT CORPORATION OF SHASTA COiTNTY, a California non-profit corporation . Dated: � , 2018 y: ev illiams, Chairman y iovamello,President Shasta EDC lease Page 20 ACKNOWLEDGMENT A Notary Public or other officer completing this certifcate verifes only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California ) ) ss. County of ) On � , 20�, before me � �. d�J�� , Notary P ic, personally appeared , who proved to me on the basis of satisfactory evidence to be the person�,a') whose name�) is/a� subscribed to the within instrument and acknowledged to me that he/sl�fe/t�tey executed the same in his/h�r/th�ir authorized capacity(i�s), and that by his/h�r/th�ir signature(,�-on the instrument the person�,a�, or the entity upon behalf of which the person�,sr) acted, executed the same. I certify under PENALTY OF PERJLTRY under the laws of the State of California that the foregoing paragraph is true and correct. Witness,my hand and official seal. ^ �� JO LID HOFFMAN � COMM.#2384988 3 � NOTARY PUBLIC�CAUFORNIA n SHASTACOUNTY � Comm.Exp.FEB.27,2021 Shasta EDC lease Page 21 ACKNOWLEDGMENT A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California ) ,�' ) ss. County of�/c�� ) On � , 201�, before me, O . 7'7� Ct��J , Notary P lic, personally appeared d , who proved to me on the basis of satisfactory evidence to e the person� whose name(� is/a�e subscribed to the within instrument and acknowledged to me that he/s�f`e/tl�y executed the same in his/h�r/the�Ir authorized capacity(i�s), and that by his/l�/th�'Iir signature(,gJ on the instrument the person(�q), or the entity upon behalf of which the person(�) acted, executed the same. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. Witness my hand and official seaL , JO�I L. HOF M N� COIMM.#2184988 3 ` //%��-`^-�'� � ' NOTARY PUBLIC�CAUFORNIA n SHASTACOUNTY � Comm.Exp.FEB.27,2021 CALIFORNIA ALL-PURPOSE CERTIFICATE OF ACKNOWLEDGMENT A notary public or other officer completing this certificate verifes only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California) County of Shasta) On August 24, 2018, before me, Sharlene Tipton, Notary Public, personally appeared Barry Tippin, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. � SHARIENE TIPTON Notary Public-Calffornia Z ._� Shasta County z z Commission#�2177426 ' My Comm.Ex ires Jan 25.2421 Signaturer.' arlene Tipton (Notary Seal) ----------------------------------------------------------------- NOTARY SEAL GOVERNMENT CODE SECTION 27361.7 I CERTIFY UNDER PENALTY OF PERJURY THAT THE ABOVE NOTARY SEAL READS AS FOLLOWS: Name of Notary: Sharlene Tipton Date Commission Expires: January 25, 2021 Commission Number: 2177426 Place of Ex tion: Redding, Califomia Date: August 24, 2018 Signed: � Sharlen Tipton CALIFORNIA ALL-PURPOSE CERTIFICATE OF ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California) County of Shasta) On August 24, 2018, before me, Sharlene Tipton, Notary Public, personally appeared Kristen Schreder, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that she executed the same in her authorized capacity, and that by her signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. SHARLENE TIPTON Notary Pubfic-California i � Shasta County = Z Commission#�2177426 � M Comm.Expires Jan 25,2021 Signature: � arlene Tipton (Notary Seal) ----------------------------------------------------------------- NOTARY SEAL GOVERNMENT CODE SECTION 27361.7 I CERTIFY UNDER PENALTY OF PERJURY THAT THE ABOVE NOTARY SEAL READS AS FOLLOWS: Name of Notary: Sharlene Tipton Date Commission Expires: January 25, 2021 Commission Number: 2177426 Place of Ex tion: Redding, Califomia Date: August 24, 2018 Signed: Sharlene Tipton Shasta EDC lease Page 22 ACKNOWLEDGMENT A Notary Public or other officer completing this certi�cate veri�es only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California ) ) ss. County of ) On , 201_, before me, , Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the same. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. Witness my hand and official seal. Shasta EDC lease Page 23 ACKNOWLEDGMENT A Notary Public or other officer completing this certifcate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California ) ) ss. County of ) On , 201 , before me, , Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the same. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. Witness my hand and official seal. Shasta EDC lease Page 24 EXHIBIT A DOCUMENTS DEPICTING THE BOUNDARIES OF THE PREMISES AND THE FLOOR PLAN OF THE BUILDING ON THE PREMISES 3 Pages of Attachments Follow GI� 'W�b Map �`� � � � � � � �t � , � �� ,�� ;�;ri� ,� �� , � ��+ '�� ti '�4t� '� � � �� , ' �� ,�� . �,� I ��' �' , � � .�� , � ��'�` ' �_ '� � � � fltG �� I 7 A""`� �� I��. , I �V �� 'f� I�'��'��I � w �� : � ��r- e�. �� ,: _ ti ��r- �. F , ��: � . , � _ � . - �;� ;s�:.. :z �� ; � � : � . � �� }��4 4 �` �m . � �•� 4, � . �'� �, � � _ ,�.. ��. : � ��, . , . .. . , �� w�,, �: �,� �`- �'j �:r �; �. �c�' a.- �t �' ��, . r' �' y,� :.�$�� `� . � ��'� �� +� a.r".'��`, e t$ e�P".'.- ��;¢... rl ��' � $ _ J � ��.;d k'�sZt � �a$ & } �� '��. h �3. »'C'v��'�h�� z, " �. :� . ra .f :#: � :� �,� � ,:.m�.a. .. �:.r 5.<. " June 29, 2018 icB64 BOUNDARIES OF THE PREMISES p O.OU4 7S t).0095 0.019 m1 D Parcel � � ' % �� , ' ' `' 0 O.Ot�75 A.0 f 5 {�.{�:i kn� 9ource:Eeei,Oi�leiCvloUo.OaoEya, �stthstar Geogr�phie�:GNEStRtrbus AS.U�DA U9tl8,Asrn�WS.tCiN.�rtl tha(338�3se�CommunisY por. Ssc. 11. P.B. Readtng Grant 1{��—17Q foo •u�,re9 rn��t S>�'2Dp �� 4 � �� .N � � NJ b rr� N Y �� glw��p7�� 4 '�tT y 6 � � , yry \ �� y. � "sae 02 �� ' za � M,�y �� Portion of APN 102-170—Q25 �: ��'� \'y�.� �'f'32'40'F � 1e �y. ^\��Ok' O 6+ .� . � � � � \q � �` c 4a �S\ it \ _ � qe�°'\ �� — 23 a� 3 �ip y�b�? \ � N� ti '� R g�r 13`�g7 . � \ /� .3,i �Zg � to �-+c \� aas•ax4sw � � .3 u�'r C� �� +w�+�Y � �'�` td R+AB3' � •{� ,�q f�lsd Cond p' t+ys _ ..._ _. i• .ry� s �?6, /��(a'/HQ � �y / aa �� r 5R2�. j�m =�'� � �3..i " �� /"� . ry�/. IQ4.09' � '7' . A�i i$ *_ Jwaa•3zanrv � ' � . , J td�, F,N ,�.. a/F1.• d i � e y9 �,�a 1 � ryP� � '� �'� 5O',_( {}�. � .,as � �''� 0. � . �..- a �Ze I .. ��,,�' �� 4i `\ � � O �� 4'd�b �e�/ � �� r p� 9 ��p3 � �� ?,9�3i"Ni . . . _ . � '� 3.9r.° � q�/ � 's S � f .i � / gp�// /�?s'9� '� / � '� � �.`�° ?%' a� ' .— ,�'� � .+ � � 9% �9\�3h` 3it DTt ��\ / q 2i5.94� ..r H a o � /j K�� e j'°se�4d3're`ss4:,�d,`` /. � .6' � �. o- a' 2e�..eT— ' — J� �� `y's�/ % 1j `�� . � \'� ` �LJ= � .� �^x?.'%8�� --� ' � li �ay/ Rsi0C1�----.L-a05.46' ��'�_ _`�7`Sta�� '�.` ��g2�a07 475`' '� ". -- -- �. mt J / '�. � ,`` - '� � %� / ,��,// �„x�e�� `„ '�;\r � ��J_�'_sea°sa nae H—�-FI Wd�_ f 1 s�� 03 / zo'Li 5�.� �.�n � `\ � ss�:esa�-298 .____�t--—_.__ r 1 � �$ O�°/'� a�� ' � \ � "�,` �`� �4 -�—�---—____ '''�� si9��x :�� .� � � p�it .!-•� � � �.. a ��. `, s��\ //�/ i�'. Gjt.�g'�,.-�� .\ . �` � � i ,.� ��.� BUt�e N��Z�%'� J ,E, .ui� �� a m'L-=-.�r � - G /�' '�� ro»REFERFN�E aVtr ''o � � P.M.19-119.24-38. �.�,.�,.�.�,.��.,.�«»��.��, �.�:�..��,�„�"°�.,�. c)\� L,S.3-12.27--5.29-22,31-53�34--45.36-79� s�ro-�bA+m�. .i` . ', tt�vau�u�uaaur.atr.. . �� COMPUTER ROOM ro� 8 SF 154 SF LAVATORIES DIRECTOR 146 SF COMPUTERS 204 SF RECEPTIOIV 52 SF 100 SF KITCHEN 25 SF HALLWAY 105.3 SF �- CONFERENCE LOBBY 2so s� 512 SF OFFICE OFFICE 132 SF 132 SF T�� 19 SF STOR s � 15 SF � � TOTAL BUILDING AREA: 2130 SF � 8quar�PoofaO�ahown is approYhiai�anFj. Floor Plan aor so aca�e ,luty t8.2ot8 Shasta EDC lease Page 25 EXHIBIT B DESCRIPTION OF iNITIAL LESSEE IMPROVEMENTS • Remove two (2)non-load bearing walls that were not part of the original design(see attached drawing). • Re-Key all internal and external locks. • Change the direction of the door swing on the data/communication room to allow for improved access for serviceability. • Install"Push Bar"access on the Side Entry door for added security and access control system support. • Add mechanisms to side door to support item above including rods for locking,the addition of hardware to provide for one-direction swinging to improve reliability of locking system. • Perform minor interior electric work by tapping into existing circuits to add electrical (110/120 VAC) outlets. i_. — - _ _ _ ---- - I i ' � COAAPUTER ROOM e� � �sa sF iAVAft3RiES DlRECTOR CtMflPUTfRS :Oa 5F �� J/ R��€P'fl�1 32� I � t00SP I u� �� A �� _ tiALLWAY t0a3 SF n �; r_ � � _ �� - 60$BY Of-t-ICE OFPICE .. � �OSF 792SF 73'13 � _"' S1�1:. � � �s&r R+�ve irtber&ar norMoas9 bsacirtg w�ls � TOTALBUlIA@�1t',ARFA:2130SF � �� _ . ��f�il � +m�aID» � -- _ �