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Home My WebLink About _ 4.11(b)--Approve CA State Lands Commission Lease Lake Redding Bridge and Diestelhorst Bridge � � �' � � � � � � ' � �' � � ' � ` CITY OF REDDING REPORT TO THE CITY COUNCIL MEETING DATE: April 15,2025 FROM: Michael Webb, Public Works ITEIVI NO. 4.11(b) Director ***APPROVED BY*** � �c a� � �bEi� 'c�r�Cs I7�reetcsr �,t�i2t}`?� r5�' �p�i��,C�i �r� �, �,�'�,{'2{�?. mwebb@cityofredding.org btippin@cityofredding.org SUBJECT: 4.11(b)--Approve California State Lands Commission L,ease for the Lake Reddin Brid e and Diestelhorst Brid e Recommendation Authorize and approve the following: (1) Approve a Lease Agreement 7875 with the California State Lands Commission for the Lake Redding Bridge and Diestelhorst Bridge crossing over the Sacramento River at Assessor's Parcel Numbers 101-490-01 l, ll2-140-007, and 112-390-00"7, for a period of 20 years ending on February 28, 2045, for authorized improvements to include the existing vehicle bridge and bicycle/pedestrian bridge, three-electric transmission lines, one 16-inch water pipe, associated service lines and light poles; and (2) Find the action categorically exempt from review under the California Environmental Quality Act, pursuant to Section 15301 - Existing Facilities. Fiscal Impact Pursuant to Lease 7875 (Lease} reimbursement costs due to the California State Lands Commission (CSLC) are not expected to exceed $12,000. The City of Redding's (City) - Public Works Street Maintenance Division has budgeted funds for the reimbursement. AZteNnative Action City Council may choose not to approve the Lease and provide alternative direction to City staff. Background/Analysis The Diestelhorst Bridge and Lake Redding Bridge on the Benton Drive/North Caurt Street alignment cross the Sacramento River on public land leased from the State of California under the jurisdiction of the CSLC. The Diestelhorst Bridge was completed in 1915 and currently serves as a bicycle/pedestrian bridge, In 1996, the City entered into a 25-year Lease Agreement (Lease) with the CSLC allowing for the continued use and maintenance of the Diestelhorst Bridge and the construction, use and maintenance of the Lake Redding Bridge which was completed in 1997. The Lake Redding Bridge serves as a vehicle bridge with two vehicle lanes and two bicycle/pedestrian lanes. Report to Redding City Council Apri110,2025 Re: 4.12(b)--Approve CA State Lands Commission Lease Lake Redding Bridge and Diestelhorst Bridge Page 2 The CSLC is requiring the City to execute the Lease for the continued use of the bridges for a term of 20 years ending on February 28, 2045. The authorized improvements include the two existing bridges, three-elec�ric transmission lines, one 16-inch water pipe, associated service lines and light poles. Bridge inspection reports performed by City staff, consultants or provided by Caltrans wi11 be submitted to the CSLC every two years. A condition/integrity assessment of the utility lines will be submitted prior to June 30, 2025, and once every 10 years afterward. Environmental Review Staff has determined that approval of a Lease is categorically exempt from review under the California Environmental Quality Act, pursuant to Section 15301-Existing Facilities. Class 1 exemptions include the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing facilities, structures, or topographical features involving negligible or no expansion of use. The City will enter into a new Lease to allow for the continued use and maintenance of the existing bridges and associated utilities. The Lease will not result in an expansion of use, and this action has no potential to have a significant effect on the environment. Council Pr�ioNity/City Manager Goals • This agenda item is a routine operational item. Attachments ^Exhibit A ^Exhibit B-Location Map ^Notice of Exemption State of California Lease 7875 EXHIBIT A LEASE 7875 LAND DESCRIPTION A strip of submerged lands, 120-feet wide, in the bed of the Sacramento River, adjacent on the right bank to P.B. Reading's Grant and on the left bank to Section 26, T. 32 N., R. 5 W., M.D.M., County of Shasta, State of California, lying 30 feet easterly and 90 feet westerly of the following described centerline: BEGINNING at a Station PT 26+04.67, as shown on a Drawing No. A-9795 "Lake Redding Bridge" (sheet 1 of 34) on the file with City of Redding Department of Public Works Engineering Division in June 1998; thence N 01° 20' 51" E 606.33 feet to Station EB 32+11.00, as shown on said drawing, and the TERMINUS of said centerline. The sidelines of said strip shall be prolonged or shortened as to begin and terminate at the low water of the left and right banks of the Sacramento River. EXCEPTING THEREFROM any portion lying landward of the low water of the left and right banks of the Sacramento River. END OF DESCRIPTION Prepared 04/28/2022 by the California State �ands Commission Boundary Unit. � �o��L La�,� w��'� � k�� oti ��' � � o x ��° �o g4$� � �� - �� cALt�� NO SCALE SITE N �� , zl o' �� ,�� W� °� .'�� "��'��:��' ��&�'� m� � �� ;�� I APPROX. _ _ _ _ _ _ - _ _ - - - - - - - ' -" �SHORELINE ` LEASE �AKE REDDING , AREA BRIDGE SACRAMENTO RIVER , DIESTE�HORST BRIDGE - , � - - APPROX. - - - - - - - - - - - - - - - - - - - - ..._. ( SHORE�INE '� �- � �� , .�� w��.��N�'� �� , 1 DIESTE�HORST & �AKE REDDING BRIDGES, NEAR CITY OF REDDING NO SCALE LOCATION EXH I B IT B � �, � � " ��~ � � .�� LEASE 7875 a� �� ""� �' CITY OF REDDING , � , , � � �,, � �� . � �,� ��, APNs: 101-490-011, �� 112-140-007 & 112-390-007 � � � � �� GENERAL LEASE - �,��Y �� ,� � "� ` PUB�IC AGENCY USE �� <�� SHASTA COUNTY ��„,� � , '�" � „� k � � � � � � , �� '� TC � k 1 G �{ �� ' � �" �� t � S( �"�`� � �*�� `"� '"� ��, ' .�,.�,�.�. i i' x c wb' v, t �a, t� '� a �� t�..'��. �-'� � v: �� ' � � .�� h�� c�� , �� y �. �� . ti�� ,,. t�� , �, ��r a s,�� $,� y� . � Y, � ;,� �Y �. �' "^��.'"�; :" � �. „w ,� ' ! 3 �N:rt+wa i� x�y�,��'� �q , , �� ' ?". z ; �{ �� '�� .,k4F.,` MAP SOURCE:,USGS QUAD �,.�� ,�� , k,� , ��,�.,;�� 4�t��Mo„ � "" ... . . i 1. THIS EXHIBIT IS SOLE�Y FOR PURPOSES OF GENERA�LY DEFINING THE LEASE PREMISES, IS BASED ON UNVERIFIED INFORMATION PROVIDED BY THE �ESSEE OR OTHER PARTIES AND IS NOT INTENDED TO BE, NOR SHALL IT BE CONSTRUED AS, A WAIVER OR LIMITATION OF ANY STATE INTEREST IN THE SUBJECT OR ANY OTHER PROPERTY. TS o4/2s/2o22 +aTICE OF E�EMPTI()N TCt; OO Office of Planning and Research FRoivi: City of Redding �400 Terlth Street;Room 121 Public Warks Department Sacrarnento;CA 95&14 777'Cypress Avenue Redding, CA 960t�1 � Shasta Caunty Clerk County c�f Shasta P:C). Box 99088Q, 1643 Market Street Redding,CA 96099-0880 Project Title: California State Lands Cc�mmissian Lease for the Lake Reddin�Bridge and Diestelht�rst Brid�e Pr�ject Location—Specific: Assessor's Parcel Nurnbers 101-494-011 11'2-140-007 112 394-007 Project Locatissn—City. Reddin�; Froject Locatit�n—C€�unty; Shasta �Mescriptian �f Project: The City ofReddiri�?will execute a lease a�reement with the Califc�rnia State Lands Cc�rnmission for the Lake Reddin Brid�e and Dzestelhorst Brid�e: The lease a�reement authorizes the City owned itmprovements c�ver the Sacralnento River includin�the vehicle brid e�, pedestrian brid�e electric transrnissian lities a water line li�h�oles and associated service lines. The lease agreement has a term of 20-years and will end in February 2028. Name of Public Agency Approving l�rojectic Citv of Reddin� Narne of Person or Agency Car�-ying Out Project. I�en Iwamura.Ci , Surveyor Exempt Status. (cheek one) C] Ministerial [Sectic�r�21080{b){1); 152�8] Cl Declared Emergency [Section 21080{b)(3); 15269(a}] ❑ Emergency Project ISection 21Q�0(b){4); 15269{b}] C7 Statutory Exemptions. �tate code number: C� Comman 5ense Exemption(This project does not fall within an exempt class,but it can be seen with certainty that there is no possibility that the activity may have a significant effect on the environment(14 GCR 15601[b][3]). C� Categorical Exemption, State type and section nurnber: Sec. 15301, Existing Pacilities � Na e�ceptions apply that would bar the use c�f a categorical e�emption(PRD 210$4 and 14 CCR 1530Q.2}. l�easons why project is exempt: Class 1 exemptions include the permitting;, le�sing, and operation of public ar private structures,:facilities, mechanical equipment, or topc�graphical features that involve negli�ible or no expansion of existin� or former use. The action will not result in expansian af use as the new lease a�reement will replace the previous agteement that authorized tl�e improvements and assaciated maintenance. This actlon has no potential to have a significat�t effect on the environment. Lead A�eney+Contact P'erson:Alnber Kelley Telephone: 530.225.4046 Tf Filed Iby Applicant. 1. Attach cer-tified document of exemption findir�g. 2. Has a notice r�f exemption been filed by the public agency apprc�ving the project? ❑ Yes o No Signature: ��.� Date: �✓�� Tit1e; Enviranmental Compliance na er �Signed by Lead Ageney Date recei�ed for filing at QPR: C7 Si�ned by Applicant RECORDED AT THE REQUEST OF AND WHEN RECORDED MAIL TO: STATE OF CALIFORNIA California State Lands Commission Attn: Land Management Division 100 Howe Avenue, Suite 100-South Sacramento, CA 95825-8202 STATE OF CALIFORNIA OFFICIAL BUSINESS Document entitled to free recordation pursuant to Government Code Section 27383 SPACE ABOVE THIS LINE FOR RECORDER'S USE A.P.N.: 101-490-01 1,1 12-140-007, a n d 1 12-390-007 County: Shasta A3445 LEASE 7875 This Lease consists of this summary and the following attached and incorporated parts: Section 1 Basic Provisions Section 2 Special Provisions Amending or Supplemenfiing Secfiion 1 or 3 Section 3 General Provisions Exhibit A �and Description Exhibit B Site and Location Map SECTION 1: BASIC PROVISIONS THE STATE OF CALIFORNIA, hereinafter referred to as Lessor acting by and through the CALIFORNIA STATE �ANDS COMMISSION (100 Howe Aven�e, Suite 100-South, Sacramento, California 95825-8202), pursuant to Division 6 of the Public Resources Code and Title 2, Division 3 of the California Code of Regulations, and for consideration specified in this Lease, does hereby lease, demise, and let to CITY OF REDDING, hereinafter referred to as Lessee, those certain lands described in Exhibit A hereinafter referred to as Lease Premises, subject to the reservations, terms, covenants, and conditions of this �ease. MAILING ADDRESS: City of Redding Attn. Ken Iwam�ra 777 Cypress Avenue Redding, CA 96001 LEASE TYPE: General �ease - Public Agency Use LAND TYPE: Sovereign LOCATION: Sacramento River, adjacent to Assessor's Parcel Numbers 1 Ol-490-01 1, 1 12-140- 007, and 112-390-007 in Shasta County, as described in Exhibit A attached and by this reference made a part hereof. LAND USE OR PURPOSE: Use and maintenance of one existing vehicle bridge (Lake Redding Bridge) and one existing bicycle/pedestrian bridge (original Diestelhorst Bridge) previously authorized by fihe Commission and three atfiached electrical conduits, one iron water pipeline, a water service pipeline inside a PVC pipeline, light poles and associated electric lines not previously authorized by the Commission. TERM: 20 years; beginning March 1, 2025; ending February 28, 2045, unless sooner terminated as provided �nder this Lease. CONSIDERATION: The p�blic use and benefit, with the State reserving the right at any time to set a monetary rent if the Commission finds s�ch action to be in the State's best interest. AUTHORIZED IMPROVEMENTS: X EXISTING: One vehicle bridge (Lake Redding Bridge) with two vehicle lanes and two bicycie/pedestrian lanes with two attached electrical conduits (one conduit contains three 750 kcmil Aluminum 15kV XLPE insulated cables, and one conduit contains three 4/0 Aluminum 15kV XLPE insulated cables); and one existing bicycle/pedestrian bridge (original Dietselhorst Bridge) with one attached 16-inch- diameter ductile iron water pipeline, a 3/4-inch-diameter water service pipeline inside a 1 .5-inch-diameter PVC pipeline, light poles and associated electric lines. TO BE CONSTRUCTED: CONSTRUCTION MUST BEGIN BY: N/A CONSTRUCTION MUST BE COMPLETED BY: N/A LIABILITY INSURANCE: $0 SURETY BOND OR OTHER SECURITY: $0 SECTION 2: SPECIAL PROVISIONS BEFORE THE EXECUTION OF THIS LEASE, ITS PROVISIONS ARE AMENDED, REVISED, OR SUPPLEMENTED AS FOLLOWS: Inspections and Assessments: 1 . No later than December 31, 2025, �essee shall promptly provide Lessor, at no cost to �essor, electronic copies of the inspection reports of the vehicular Lake Redding Bridge prepared by Caltrans in 2024 and 2025, and every two (2) years thereafter. 2. No later than J�ne 30, 2025, and afi least once every fien (10) years thereafter, Lessee shall conduct a condition/integrity assessment, certified by a California registered Civil/Structural Engineer, of the following utilities within the Lease Premises to confirm their fitness for purpose and continued use: • Three electrical conduits on the vehicular Lake Redding Bridge. • 6-inch-diameter ductile iron water pipeline, a 3/4-inch-diameter water service pipeline inside a 1 .5-inch-diameter PVC pipeline, light poles and associated electric lines on the nonvehicular Diestelhorst Bridge. The assessment shall also include the corrosion conditions of the d�ctile iron water pipeline. The Lessee shall conduct condition/integrity assessments of any of the facilities within the Lease Premises at a higher frequency (more frequent than once every ten 10 years) if it is recommended by the Civil/Structural Engineer. Additionally, �essee shall conduct such condition/integrity assessment when warranted by extraordinary circumstances such as a significant seismic event. Within sixty (60) days of completion of each assessment and at no cost to Lessor, Lessee shall s�bmit to Lessor copies of the results of the assessment including reports, findings, recommendations, and a repair plan with schedule if repair/remediation to any of the facilities is recommended by the Civil/Structural Engineer. 3. �essee, or its qualified contractor, shall conduct an external inspection and condition assessment of the non-vehic�lar Diestelhorst Bridge at least once every two years from the lease issuance date. In addition, Lessee, or its qualified contractor, shall conduct an external inspection and condition assessment of the bridge when warranted by extraordinary circumstances that may undermine the bridge's stability or integrity, s�ch as an accident, a major fiood, or a significant seismic event. The schedule of the external inspection and condition assessment may be modified by mutual agreement among the parties hereto. At no cost to �essor, Lessee shall promptly submit digital copies of the resuits of fihe external inspection and condition assessment, including reports, findings, and recommendations, to �essor when repairs pertain to major renovation projects, extraordinary circumstances, public health and safety, and on request of Lessor. a. Lessee, or its qualified contractor, shall perform upkeep and maintenance on the bridge as documented under Work Recommendations in the inspection reports as noted by Lessee, or its q�alified contractor. 4. REIMBURSEMENT OF STAFF EXPENSES: a. REIMBURSEMENT OB�IGATION: Lessee shall reimburse any and all reasonable expenses incurred by Lessor or its staff in managing the �ease. This does not create an obligation for Lessor to perform any specific work or provide any specific services. Lessor assumes no liability for the work contemplated. The parties agree and acknowledge that this does not create an employment or fiduciary relationship. Any work performed by Lessor shall be done within �essor's duties and obligations as a public agency. Lessor retains ownership of any work product created and retains full discretion to act in the best interests of the State in managing and monitoring this Lease. b. SCOPE OF WORK: Lessor's staff shall perform work required to manage the Lease including, but not limited to, reviewing submittals required by the Lease. Such work includes any staff costs for review of inspection reports, condition assessments, and other submitted doc�ments related to Section 2 lease provisions. c. ESTIMATED REIMBURSEMENT COSTS: The estimated total cost for the work is Twelve-Thousand Dollars ($12,000) ("Estimated Total Cost"). d. EXPENSE DEPOSIT AND BI��INGS: The total costs invoiced, including expense deposits, for the work authorized shall not exceed the Estimated Total Cost unless �essor provides Lessee notice of such increase outlined below. Staff costs incurred by �essor for the work described will be billed in arrears on a monthly basis. All payments are due thirty (30) days from the date of the invoice. �essor reserves the right to demand an expense deposit equal to the Estimated Total Cost less any funds already paid for the remaining term of the �ease at any time by providing thirty (30) days written notice of s�ch demand. e. ADDITIONAL COSTS: In the event the actual costs for managing and monitoring compliance of the Lease exceeds the Estimated Total Cost, Lessor will provide written notice to Lessee. S�ch notice will estimate the additional funds needed for the remaining term and state the amount, if any, that Lessee must deposifi. Upon notice, Lessee shall have the opfiion to disp�te or accept the increase with all the terms and conditions of the Lease remaining unchanged and in effect. Lessee shail notify Lessor in writing within five (5) business days of receiving notice of the cost increase of any intent to disp�te the increase. If Lessee agrees to the revised amo�nt or fails to respond as required herein, Lessee will be deemed to have accepted the increase and the Estimated Total Cost will a�tomaticaliy increase to the amount stated on Lessor's notice of additional costs (Revised Estimated Total Cost). Lessee will deposit the balance of the Revised Estimated Total Cost within thirty (30) calendar days of the notice of the increased costs, unless a timely notice of dispute has been submitted. f. DISPUTES: Any disp�te arising under or relating to Lessor's work which is not disposed of by agreement of Lessee and Lessor's staff shall be decided by Lessor's Executive Officer or designee, who shall red�ce their decision to writing in regard to the dispute and shall transmit a copy thereof to l.essee within thirty (30) days of notice of the dispute. The decision of the Executive Officer or designee shall be final and conclusive, unless within thirty (30) days from the date of receipt of such copy, Lessee transmits to Lessor a written appeal. Said appeai shall be supported with specificity. g. In connection with any appeal proceeding under this clause, �essee shall have an opportunity to be heard before the State �ands Commission within ninety (90) days of the receipt by staff of Lessee's written appeal and to offer evidence in support of its appeal. Pending the final decision of any such dispute, Lessee shall proceed in accordance with the written decision of the Exec�tive Officer or designee, which is the subject of Lessee's appeal including the payment of invoices to the State. h. The procedure described herein shall not prejudice or deny �essee's remedies at law. However, Lessee agrees to exhaust the procedure described herein before pursuing remedies at law. All amounts paid to the State under protest shall be held by the State in trust until the dispute is resolved. i. INVOICING AND PAYMENT: Lessee agrees to reimburse Lessor for all reasonable costs associated with lease management, incl�ding but not limited to the work and costs described in the Scope of Work above. Staff costs shall be computed in accordance with Section 8752 of the State Administrative Manuai and shall include salaries and wages, related staff benefits, and administrafiive overhead. Invoices shall be mailed to Lessee at the address idenfiified in Section 1 of this lease, unless otherwise directed in writing by Lessee. Payments shall reference the lease number, Lease 5213, and m�st be mailed to the following address: California State Lands Commission Howe Avenue, S�ite 100 South Sacramento, CA 95825-8202 Attention: Accounting j. NOTICES AND AUTNORITIES: Any notice or other written communications required or permitted may be personally delivered in writing, or may be sent by certified mail, ret�rn receipt requested, to the address stated above and shall, based on such delivery or sending, be deemed to have been effectively communicated. Any notice given other than as provided above, shall not be deemed to be effectively communicated untii received in writing. 5. Should a pipeline leak occur within the �ease Premises, �essee shall immediately notify Lessor at (562) 590-5201, the California Governor's Office of Emergency Services at (800) 852-7550, and other applicable agencies. A spill report documenting all aspects of the leak and its final mitigation shall be filed immediately and electronically with the �essor. 6. �essee shall not install, attach, or authorize the placement or attachment of any additional utilities or other improvements on the existing bridges or within the Lease Premises without the Lessor's prior review and approval. Separate Leases may be required for any utilities or other improvements placed on the bridges or within the �ease Premises. 7. The provisions of Section 3, Paragraph 11 shall also extend to the period of Lessee's unauthorized occupation of state-owned lands, from March 1, 2022, thro�gh February 28, 2025. 8. Lessee acknowledges that it would be solely responsible for any costs associated with any environmental analysis required under a removal plan as specified in Section 3, paragraph 14.4(B). 9. Section 3, Paragraph 7.3 does nofi apply to this lease. (Remainder of page intentionally left blank] Section 3: General Provisions Paragraph 1 : Definitions "Applicable Laws" are all local, state, and federal statutes, regulations, rules, codes (including building codes), ordinances, j�dgments, orders, notice requirements, and other requirements of governmental authorities pertaining to the use or condition of the Lease Premises and the conduct of Lessee's business thereon in effect as of the date of execution of this Lease or subsequently enacted and lawfully applied hereto. "Damages" are all liabilities, demands, claims, actions, or causes of action whether regulatory, legislative, orjudicial in nature; all assessments, levies, losses, fines, penalties, damages, costs, and expenses, including, without limitation: (i) reasonable attorneys', accountants', investigators', and experts' fees and expenses s�stained or incurred in connection with the defense or investigation of any s�ch liability, and (ii) costs and expenses incurred to bring the Lease Premises into compliance with Applicable Laws, Environmental Laws, a court order, or applicable provisions of a Regulatory Agency. The term "Damages" also includes those Damages that arise as a result of strict liability, whether arising under Environmental �aws or otherwise. "Environmental Laws" are any and all federal, state, or local environmental, health, or safety-related laws, regulations, standards, decisions of courts, ordinances, rules, codes, orders, decrees, directives, guidelines, permits, or permit conditions, treaties and conventions, currently existing and as amended, enacted, issued, or adopted in the future that are or become applicable to �essee, and the �ease Premises with respect to: (a) the protection, preservation, or clean-up of the environment, wildlife, habitat, or nat�ral resources; (b) the use, treatment, storage, transportation, handling, or disposal of Hazardous Materials; (c) the quality of the air and the discharge of airborne wastes, gases, particles, or other emissions; (d) the preservation or protection of waterways, groundwater, or drinking water; or (e) the health and safety of persons or property. "Hazardous Materials" are any chemical, substance, material, controlled s�bstance, object, condition, waste, living organism, or combination thereof that is or may be hazardous to human health or safety or to the environment due to its radioactivity, ignitability, corrosivity, reactivity, explosivity, toxicity, Page 1, of 22' Form51 .16 (Rev. 4/24) carcinogenicity, mutagenicity, phytotoxicity, infectiousness, or other harmful or potentially harmful properties or effects, including, without limitation, tobacco smoke, petroleum and petroleum products, asbestos, radon, polychlorinated biphenyls (PCBs), and all of those chemicals, substances, materials, controlled substances, objects, conditions, wastes, living organisms, or combinations thereof that are now or become in the f�t�re listed, defined, or regulated in any manner by any Environmental Laws based on, directly or indirectly, such properties or effects. "Improvements" are any modification, alteration, addition, or removal of any material and any other action that changes the condifiion of the Lease Premises from the natural state, whether situated above, on, or under the �ease Premises. Improvements include any construction situated on or placement of material within the Lease Premises regardless of value. "Lease" is this document together with all s�bsequent amendments and exhibits. "Major Repairs" means any work that requires a permit or approval from other agencies, req�ires environmental review, or requires rebuilding or replacing any of the authorized Improvement(s). "Mineral Resources" includes timber, crops, sand, oil, gas, hard rock minerals and other mineral deposits as defined in Public Resources Code section 6407. "Natural Resources" are all of the flora and fauna native to both the upland terrestrial, fresh water, coastal and marine ecosystems within, and adjacent to, the lease premises. "Public Trust" means the constitutional, statutory, and common law doctrine providing the state's sovereign authority over the navigable waters of the state, including the tidelands and submerged lands �nderlying those waters that are held in trust for the benefit of all the people of the state and for purposes that include maritime or water-dependent commerce, navigation, fisheries, the preservation of lands in their natural state for scientific study, open space, wildlife habitat, and water-oriented recreation. "Repairs" means work to maintain the Lease Premises and Improvements thereon in good, safe, and clean condition. Repairs are work that is minor in scope, do not require obtaining permits, approvals, or authorizations from other agencies, such as building permits, and do not require environmental review Page 2 of 22 Form51 .16 (Rev. 4/24) under State or Federal environmental laws. Paragraph 2: Rent 2.1 . Absolute Triple Net Lease. This Lease is an absolute triple net lease, meaning Lessor has no obiigation with respect to the payment of taxes, insurance, the cost of maintenance, utilities, repairs, or other costs or obligations associated with the �eased Premises, except as expressly stated herein. 2.2. Payment of Rent. Lessee must pay rent annually, on or before each anniversary of this Lease unless this Lease specifies a different rent schedule. The first installment is due on the beginning date of this Lease or within 60 days of Lessor authorizing the Lease at a public meeting, whichever is later. Rent is due each year in advance. Should Lessee s�bmit payments that are less than the full amount of rent due under this Lease, �essor may provide a supplemental billing invoice. Rent will not be refunded or prorated if Lessee discontinues use of the �ease Premises during the term. 2.3. Place for Payment. All payments under this Lease must be submitted to Lessor's principal office as specified in this Lease. Lessee may contact Lessor's accounting staff for Lessor's currenfi practices for payment by credit card or electronic fund transfer. 2.4. Covrtesy Invoices. �essor may send courtesy invoices to the address on file for Lessee at least thirty (30) days before a rent payment is due. Lessor's failure to, or delinquency in, providing invoices will neither exc�se Lessee from paying rent nor extend the time for paying rent. If Lessor does not send a courtesy invoice, Lessee must submit rent in the amount of the prior year's rent when due and contact Lessor within thirty (30) days to determine the balance d�e. 2.5. Penalties and Interest. Penalties for late payments of any amounts due under this Lease and interest thereon are as provided in Title 2, California Code of Regulations section 1911 (b). Timeliness of receipt of remittances shall be as provided in Title 2, California Code of Regulations section 191 1 (a�. 2.6. Annual Adjustment of Rent. The rent specified in Section 1 of this �ease will be adjusted annually by the Consumer Price Index as specified in Title 2, California Code of Regulations section 1900(m� & (n) unless otherwise specified in this Lease. 2.7. Review of Non-Monetary Consideration. If rent is discounted or waived pursuant to Title 2, California Code of Reg�lations section 2003(e)(4), �essor may Page 3 of 22' Form51 .16 (Rev. 4/24) review such determination at any time and set a monetary rental. Lessee shall be given at least thirty (30) days' notice prior to the date of the Commission meeting wherein the rent modification is considered, or thirty (30) days' notice prior to the effective date that the rent is changed, whichever provides more notice. 2.8. Periodic Rent Review. �essor may modify the method, amount, or rate of consideration effective on each tenth anniversary of the beginning date of this �ease, in addition to the last two years of the Lease as provided in Provision 14.4 below. Lessor shall consider the factors provided in Title 2, California Code of Regulations section 2003(d) when determining whether a rent modification is appropriate and which rental mefihod listed in section 2003(a) should apply. Sho�ld Lessor fail to exercise such right effective on any tenth anniversary, it may do so on any one (1 ) of the next nine (9) anniversaries following such tenth anniversary, without prejudice to its right to modify rent on the next or any succeeding tenth anniversary of the beginning date. No such modification shall become effective �nless Lessee is given at least thirty (30) days' notice prior to the date of the Commission meeting wherein the rent modification is considered or thirty (30) days' notice prior to the effective date of the increase, whichever provides a greater notice period. 2.9. If Lessor elects to prepare an appraisal to establish a new rent, Lessee may, at its option, also provide a timely independent appraisal at its sole expense for �essor's review and consideration. Prior to Lessee's contracting for such appraisal, Lessor and Lessee shall negotiate in good faith and agree upon the terms and conditions for such fihird-party appraisal, including b�t not limited to the highest and best use, appraisal methodology, and minimum appraiser credentials. Such appraisal shall be prepared in accordance with generally accepted and applicable appraisal standards as they are adopted from time to time by the Appraisal Standards Board of the Appraisal Foundation, and Lessor's Appraisal G�idelines. 2.10. Books and Records. Lessee must keep and maintain f�ll and accurate accounting books and records of transactions from the Lease Premises in accordance with generally accepted accounting principles for at least the five (5) prior years. The accounting books and records kept and maintained by Lessee for audit purposes must include all records, receipts, journals, ledgers, and documents reasonably necessary to enable Lessor or its auditors to perform a complete and accurate audit of gross sales and exclusions from gross sales in Page 4 of 22 Form51 .16 (Rev. 4/24) accordance with generally accepted accounting principles. Lessee m�st also maintain an original receipt for the payment of taxes, assessments, or installments and deliver such to Lessor upon request. 2.11 . Report of Gross Income. On �essor's request, Lessee must submit a Report of Gross Income on a form provided by Lessor for the prior five (5) years. This report together with supporting documentation (hereinafter collectively referred to as "Income Reports") must include all business operations located on or over the �ease Premises. The gross income of sublessees and all others generating income on the Lease Premises must be reported separately and with s�fficient organization and defiail so that Lessor can identify the source of all gross income generated on the Lease Premises. 2.12. Audits. On not less than ten (10) days' prior written notice to Lessee, Lessor may cause an audit to be made of the Income Reports and all of Lessee's records and accounting books necessary (in Lessor's judgment) to audit such items. Lessee will make ail such books and records available for the audit at the Lease Premises or at Lessor's offices. If the audit discloses an underpayment of Rent, Lessee will immediately pay to Lessor the amount of the �nderpayment wifih "Interest" (as provided in Paragraph 2.5), which will accr�e from the date the payment should have been made through and including the date of payment. If the audit discloses an underreporting of rent in excess of two percent (2%) of the reported Gross Income, then Lessee will also immediately pay to Lessor all reasonable costs and expenses incurred in the audit and in coilecting the underpayment, including auditing costs and attorney fees. If the audit discloses an overpayment of Rent, Lessee wiii be entitled to a credit in the amount of the overpayment against the next rent payment(s). Paragraph 3: Surety 3.1 . Lessee to Obtain Surety. �essee shall provide a surety bond or other security device acceptable to Lessor when required by Section 1 of this Lease. Such security shall be for the specified amount, name the State of California, California State Lands Commission, as the assured, and guarantee to Lessor the faithful observance and performance by �essee of all the terms, covenants, and conditions of this Lease. 3.2. Lessor's Modification of Surety. �essor may require an increase in the amount of the surety bond or other security device to cover any additionally authorized Improvements, any modification of consideration, or to provide for inflation or Page 5 of 22 Form51 .16 (Rev. 4/24) other increased need for security. The surety bond or other security device may be increased: (i) if any additional Improvements or activities are authorized on the �ease Premises; (ii) if Lessee modifies any existing Improvements such that the cost for removal of such Improvements is increased; (iii) when a periodic rent review is conducted under section 2.8; (iv) on each fifth anniversary of this Lease, (v) �essor determines it is in the best interest of the state; (v) within the last two years of the �ease. Should Lessor fail to exercise such right effective on any fifth anniversary, it may do so effective on any one of the next four anniversaries without prejudice to its right to modify the surety on the next fifth anniversary or as otherwise provided above. Lessor will provide at least thirty (30) days' notice prior to the date of the Commission meeting wherein the modification of the surety is considered, or thirty (30� days' notice prior to the effective date of the increase. 3.3. Lessee's Modification of Surety. Any security device required under this �ease must be maintained at all times during the �ease term. Lessee must first seek approval of Lessor before changing the surety holder or the type of security device used. Paragraph 4: Insurance 4.1 . Lessee Must Insure Lease Premises. Lessee must obtain and maintain in full force and effect during the fierm of this Lease comprehensive general liability insurance and property damage insurance against any and all claims or liability arising out of the ownership, use, occupancy, condition, or maintenance of the �ease Premises and all Improvements. The coverage limit must be no less than the amount specified in Section 1 of this Lease. 4.2. Insurance Policy Requirements. The insurance policy must identify the Lease by its assigned number. The coverage provided m�st be primary and non- contributing. Lessee must keep such policy c�rrent. Lessor must be named as a "certificate holder" or an "additional interest" on the policy. Lessee must provide Lessor with a current certificate of insurance at all times. At Lessor's request, Lessee must provide a full copy of the current insurance policy, along with any and all endorsements or other such documents affecting the coverage. Lessor will not be responsible for any premiums or other assessments on the policy. 4.3. Notice to Lessor. Lessee shall notify �essor within five (5) business days if the insurance is canceled for any reason and shall act diligentiy to repiace the insurance. Failure to timely replace the insurance may result in a default of the Page b of 22 Form51 .16 (Rev. 4/24) lease. 4.4. Modification. �essor may require an increase in the amo�nt of the insurance to cover any additionally authorized Improvements, any modification of consideration, or to provide for inflation or other increased need. Insurance coverage may be increased: (i) if any additional Improvements or activities are authorized on the �ease Premises; (ii) if Lessee modifies any existing Improvements or intensity of use; (iii) when a periodic rent review is conducted under section 2.8; (iv) on each fifth anniversary of this Lease; (v) Lessor determines it is in the best interest of the state; (vi)within the last two years of the Lease. Should Lessor fail to exercise such right effective on any fifth anniversary, it may do so effective on any one of the next four anniversaries without prej�dice to its right to modify insurance requirements on the next fifth anniversary. Lessor will provide at least thirty (30) days' notice prior to the date of the Commission meeting wherein the modification of insurance is considered, or thirty (30) days' notice prior to the effective date of the increase. Paragraph 5: Taxes, Assessments, and Fees 5.1 . Revenue and Tax Code Section 107.6 Statement. Issuance of this Lease creates a possessory interest that may be subject to properfiy taxation. The Lessee may be subject to, and is solely responsible for, any possessory interest taxes levied on the leasehold interest. 5.2. Lessee to Pay All Taxes, Assessments, and Fees. In addition to any Rent due under this Lease, �essee must pay when due all real and personal property taxes imposed on or associated with the �ease Premises during the term of this Lease. This includes, without limitation: possessory interest taxes, assessments, special assessments, user fees, and service charges. If this Lease begins or ends during a tax year, Lessee m�st pay the taxes, assessments, and fees for the portion of the tax year the Lease was in effect. 5.3. Reimbursement Agreements. �essee must pay in full any amount owed on the Application Reimbursement Agreement within 30 days of invoice. 5.4. Records of Payments. �essee shall keep the official and original receipt for payments required by this paragraph 5 and provide to Lessor upon request. Paragraph 6: Land Use 6.1 . Only Authorized Uses. �essee will use the �ease Premises only for the p�rposes stated in this Lease. Any additional uses or Improvements require separate Page � of 22 Form51 .16 (Rev. 4/24) authorization from Lessor. Lessee must submit a separate application to �essor to amend this Lease if �essee intends to add to or alter the Improvements on, or change the uses of, the �ease Premises. 6.2. Lessee to Comply with All Applicable Laws. Lessee, at �essee's sole expense, will comply with all Applicable Laws. Lessee must give Lessor immediate written notice on �essee's becoming aware that the �se or condition of the �ease Premises is in violation of any Applicable Laws. �essee must obtain and maintain all permits or other entitlements. 6.3. Lease Does Not Substitute for Permits. This �ease does not substitute for or provide preference in obtaining approval from other federal, state, or locai agencies. Lessee is solely responsible for determining whafi approvals, authorizations, or certifications are req�ired, and will be solely responsible for all costs incurred thereby. 6.4. No Discrimination. �essee, in its use of the Lease Premises, must not discriminate against any person or class of persons on any basis protected by federal, state, or local law. 6.5. "As Is." Lessee accepts the Lease Premises "as is" and acknowledges that: 6.5.1 . Lessor, incl�ding its officers and employees, made no representations or warranties as to the suitability of the �ease Premises for any uses authorized under this Lease. Lessee is solely responsible for determining the suitability of the �ease Premises for any proposed use or Improvements; and 6.5.2. Lessor, incl�ding its officers and employees, has made no representations or warranties as to the quality or value of any Improvements found on the Lease Premises, or of their conformity to Applicable �aws. Lessee agrees fio inspect any preexisting Improvements at its own cost to determine whether such Improvements are safe and suitable for the Lessee's intended use; and 6.5.3. Damage to or destruction of any Improvements on the Lease Premises by any cause whatsoever does not entitle Lessee to any reduction in rent or extension of this Lease; and 6.5.4. Any Improvements on the �ease Premises are considered personal property and not fixtures; and 6.5.5. Lessee accepts the hazards involved in using or improving such lands. Lessor is not responsible for any damages or reduced use of the Lease Premises caused by: local or invasive flora or fauna, flooding, erosion, climate change, Page 8 of 22' Form51 .16 (Rev. 4/24) sea level rise, storms, freezing, inclement weather of any kind, acts of god, maintenance or failure of protective str�ctures, and any other such hazards. Lessee will not be reimbursed or receive offset of rent for such hazards; and 6.5.6. The �ease Premises may be subject to pre-existing contracts, leases, licenses, easements, encumbrances, and claims. The Lease is made without warranty by Lessor of title, condition, or fitness of the land for the stated or intended purpose. 6.6. Uses Inconsistent with the Public Trust Prohibited. Unless specifically authorized in this Lease, any use of the Lease Premises which is inconsistent with the Public Trust is prohibited when the Lease Premises are lands subject to the Public Trust. Paragraph 7: Climate Change 7.1 . Lessee acknowledges that the Lease Premises and adjacent upland may be subject to the hazards exacerbated by climate change, including sea level rise. Potential hazards to the �ease Premises from climate change include but are not limited to flood damage, erosion damage, earthquakes, tsunamis, and damage from waves and storm-created debris. Lessee acknowledges that these impacts associated with climate change may require additional adapfiation or protection strategies applied to the improvements on the Lease Premises and additional maintenance. 7.2. �essee assumes the risks associated with such potential hazards and agrees to be solely responsible for all damages, costs, and liabilities arising as a result of the impacts of such hazards on the Lease Premises. Any additional maintenance or protection strategies necessitated by such hazards may be s�bject to environmental review and req�ire additional approval by the Lessor. 7.3. �essee shall conduct monitoring reports within the first three years of lease execution or construction, and at five-year intervals thereafter for the life of the project; and shall aiso provide �essor with monitoring reports following any extreme event, including, but not limited to: extreme tide event (inciuding King Tides), earthquake, or ts�nami that results in the declaration of a Local Emergency or a State of Emergency (as defined in CaL Gov. Code § 8558) or a federal Emergency or Major Disaster (as defined in 44 C.F.R. § 206.2). Paragraph 8: Environmental Matters 8.1 . Lessee to Comply with Environmental Laws. �essee, at its sole cost and Page 9 of 22 Form51 .16 (Rev. 4/24) expense, will comply with all Environmental Laws. 8.2. Hazardous Materials. �essee will immediately notify �essor of any known violation of any Environmental Laws, along with any action, claim, demand, inquiry, or order relating to a violation of Environmental Laws on the Lease Premises. Lessee must immediately provide copies of all related documents upon Lessor's request. Lessee must immediately notify Lessor and the appropriate governmental emergency response agency, or agencies in the event of any release or threatened release of any Nazardous Material on or about the Lease Premises. 8.3. Cleanup of Hazardous Materials. If Hazardous Materials are located on or released onto or abo�t the Lease Premises due to Lessee's acfiivities on the Lease Premises, the Lessee is responsible for the cleanup and disposal of such Hazardous Materials consistent with all Applicable Laws. Lessee must submit a site assessment and removal/remediation plan prepared by a professional, licensed and qualified to remove or remediate the Hazardous Materials for review and approval by Lessor. If Lessor approves the plan in writing, Lessee m�st commence the removal/remediation at its sole expense, in conformance with all Applicable Laws. Alternafiely, Lessor may elect to perform fihe removal/remediation at �essee's expense. Lessee must compensate �essor for the actual cost of the removal/remediation within thirty (30) days of receiving a written invoice from �essor. 8.4. Inspection. Lessee will permit �essor or its agents to enfier the Lease Premises on 24-hour notice to inspect, monitor, or take remedial action with respect to Hazardous Materials. If Hazardous Materials are generated, stored, or transported on the Lease Premises, �essor may require Lessee to conduct an independent environmental site assessment or inspection for the presence or suspected presence of Hazardous Materials. If this assessment or inspection is required, �essor will be allowed to review and approve the contractor, and the work will be done at Lessee's expense. 8.5. Conservation. �essee will cooperate with and participate in conservation programs for water, electricity, composting, natural gas and recycling programs, including those for the collection of cardboard, metals, plastics, and glass at Lessee's expense. Paragraph 9: Repairs, Major Repairs, and Alterations 9.1 . Lessee Required to Perform Repairs. �essee is solely responsible for Page 10 of 22 Form51 .16 (Rev. 4/24) maintaining the �ease Premises, including all Improvements, in good order and repair and in a clean, safe, sanitary, and orderly condition. Lessee is not required to get Lessor's advanced approval for routine Repairs. 9.2. Major Repairs Require Lessor Approval. Lessee must obtain Lessor's advanced written approval prior to conducting any Major Repairs. The decision whether a Repair is a Major Repair, and the decision whether a lease amendment is necessary, will be made by �essor and based on the scope, cost, and impacts of the work. 9.3. Alterations Require Lessor Approval. Any material change in the size, scope, density, type, nature, or intensity of Improvements on or uses of the Lease Premises from what is authorized in this Lease will be considered an Alteration. Lessee may nofi conduct any Alterations witho�t a modification of this Lease approved by �essor. The decision whether a change constitutes an Alteration will be made by Lessor and based on the individual facts. 9.4. Improvements in Disrepair or Unsafe Condition. �essee's failure to maintain the Lease Premises or Improvements that have become unsafe or derelict entitle Lessor to require removal under Paragraph 14. After providing notice and opportunity to cure, Lessor may require submission of a written plan to restore the �ease Premises under Paragraph 14. Lessee's failure to comply shall entitle �essor to terminate this Lease, remove the Improvements from the Lease Premises and recover the costs incurred in doing so from the Lessee. Paragraph 10: Lessor's Reservation of Rights 10.1 . Non-Exclusive �ease. Lessee's right of occupancy is non-exclusive. �essee may control access to the Improvements on the Lease Premises. Unless otherwise stated in this Lease, Lessee may exclude persons from the Lease Premises only when their presence or activity constitutes a material interference with the Authorized Use of the Lease Premises. 10.2. Lessee Responsible for Impacts to Nafiural Resources and Public Trust Uses. When the Lease Premises include school lands or sovereign lands, the Lessee is responsible for any damage or adverse impacts to Natural Resources within or adjacent to the �ease Premises. It is the intention of �essor to limit the transfer of rights under this lease to the minimum level required to carry out the primary purpose of the Lease. Lessee's use of the Lease Premises must minimize impacts to the Public Trust if the Lease Premises are subject to the Public Trust. Lessee must not interfere with public access or Public Trust uses authorized under statute Page 11, of 22 Form51 .16 (Rev. 4/24) and common law. 10.3. Mineral Resources. Mineral Resources may not be removed from the Lease Premises unless specifically authorized under this Lease. Lessee shall not extract, sell, damage, or use Mineral Resources found within the �ease Premises without specific authorization under this Lease. Lessor reserves the right to grant and transfer Mineral Resources along with the right to grant leases to third parties in and over the Lease Premises for the extraction of such Mineral Resources. Such leasing will not be inconsistent or incompatible with the rights or privileges of Lessee under this Lease. 10.4. Right to Inspect. Lessor reserves the right to inspect the Lease Premises. If access to the Lease Premises is reasonably accomplished by passing through adjacent property owned by Lessee, Lessor shall provide 24-hour notice prior to entry and Lessee shall grant such entry for inspection of the Lease Premises. 10.5. Statutory Reservations. Lessor reserves to the public an easement across the Lease Premises complying with Public Resources Code section 6210.4 and Public Reso�rces Code section 6210.5. 10.6. Multiple Overlapping Leases Allowed. Lessor reserves the right to lease, convey, or encumber the Lease Premises, in whole or in part, during the Lease term for any purpose not inconsistent or incompatible with the rights or privileges of Lessee under this Lease. Paragraph 11 : Indemnity 11 .1 . Lessee's Sole Risk. Lessee's use of the Lease Premises and any Improvements thereon, including use by guests and invitees, is at Lessee's sole and exclusive risk. 11 .2. Lessee to Indemnify Lessor. Except fio the extent caused by fihe sole negligence or willful misconduct of the Lessor, Lessee shall indemnify, hold harmless, and, at the option of �essor, defend Lessor, its officers, agents, and employees from any and all Damages resulting from �essee's occupation and use of the Lease Premises. �essee shall reimburse Lessor in full for all reasonable costs and attorneys' fees, specifically including, without limitation, any Damages arising by reason of: (1) The issuance, enjoyment, interpretation, or breach of this �ease; (2) The challenge to or defense of any environmental review upon which the issuance of this Lease is based; (3) The death or injury of any person, or damage to or destruction of any property from any cause whatever in any way connected with the Lease Premises, or with any of the Improvements or personal Page 12 of 22 Form51 .16 (Rev. 4/24) property on the Lease Premises; (4) The condition of the Lease Premises, or Improvements on the �ease Premises; (5) An act or omission on the Lease Premises by Lessee or any person in, on, or about the Lease Premises; (6) Any work performed on the Lease Premises or material furnished to the Lease Premises; (7) Lessee's failure to comply with any Applicable Laws or violation of any Environmental Laws; (8) The costs for any cleanup or other response costs relating to the release or threatened release of Hazardo�s Materials on the �ease Premises during Lessee's occupation of the �ease Premises. This obligation includes any prior leases between Lessee and Lessor and will continue until �essee has performed all duties under Paragraph 14. 11 .3. Lessor Not Required to Defend. Lessor need not defend itself against all or any aspect of any challenge to this Lease or any associated environmental review. Nowever, Lessee may take whatever legal action is available to it to defend this Lease or any associated environmental review against any challenge by a third party, whether or not �essor chooses to raise a defense against such a challenge. 1 1 .4. Lessee to Notify Lessor. Lessee shall notify Lessor immediately in case of any accident, injury, or cas�alty on the Lease Premises. Paragraph 12: Assignment, Encumbrance, or Sublet 12.1 . Lessor's Consent Required for Assignment. Lessee shall not mortgage; hypothecate; encumber; assign; sublet; enter into franchise, license, or concession agreements; or otherwise transfer all or part of this Lease (collectively "Assign" or "Assignment") without Lessor's advanced and expressed consent at a properly noticed p�blic meeting. Any purported Assignment witho�t Lessor's consent will be void and of no force or effect and will not confer any estate or benefit on anyone. A consent to one Assignment by Lessor will not be deemed to be a consent to any subsequent Assignment by or to any other party. 12.2. Lessee Actions Not Considered Assignments. If Lessee is a public corporation whose stock is traded on a nationally recognized stock exchange, sale or transfer of such stock is not an Assignment. 12.3. Procedures. If Lessee desires to Assign this �ease, Lessee will apply to Lessor for the proposed Assignment. The Assignment will be considered by Lessor at a public meeting. �essor may require any of the following in considering consent of an Assignment: (a) the nature, effective date, terms, and conditions of the assignment; (b) a description of the identity, net worth, and previous business Page 13 of 22 Form51 .16 (Rev. 4/24) experience of the proposed assignee; (c) a complete business plan prepared by the proposed assignee; and (d) any further information relevant to the proposed Assignment that Lessor reasonably requests. Lessor may either (i) consent to the proposed Assignment; (ii) refuse to consent to the proposed Assignment; or (iii� determine that it is preferable to terminate this Lease and issue a new lease to the proposed assignee. 12.4. Standard for Consent. Lessor may refuse its consent to the proposed Assignment on any reasonable grounds. Reasonable grounds include, without limitation: (a) the proposed assignee intends to use the Lease Premises for different activities or uses than those set forth in Section 1; (b) the proposed assignee's financial condition is deemed by Lessor to be inadeq�ate to s�pporfi the financial and other obligations of Lessee under this Lease; (c) the business reputation or character of the proposed assignee is not reasonably acceptable to �essor; (d) the proposed assignee is not likely to conduct a business of a quality substantially equal to that conducted by Lessee; (e) the proposed assignee's planned use of the Lease Premises would increase the burden on the Lease Premises, involve an increased risk of the presence, use, release, or discharge of Hazardous Materials; or (f) Lessor has not received adequate assurance that all breaches will be cured before the effective date of the proposed Assignment. 12.5. Additional Terms. Lessee's Assignment of the Lease does not release �essee from liability for any Hazardous Materials or ordinance manufactured, generated, used, placed, disposed, stored, or transported on the Lease Premises during Lessee's tenancy. An �nauthorized assignment does not relieve �essee from its covenants and obligations under this Lease. Lessor's acceptance of any payment due under this Lease from any person other than Lessee will not be deemed to be a waiver by �essor of any provision of this Lease or to be a consent to any Assignment. 12.6. Bankruptcy. If Lessee files a petition or an order for relief is entered against �essee under the Bankr�ptcy Code (11 U.S.C. § 101, et seq.), then the trustee or debtor-in-possession must elect to assume or reject this �ease within sixty (60) days after filing of the petition or appointment of the trustee, or as that deadline may be extended by order of the court, or the Lease shall be deemed to have been rejected and Lessor shall be entitled to immediate possession of the Lease Premises. No assumption or assignment of this Lease shall be effective unless it is in writing and unless the trustee or debtor-in-possession has cured all breaches of Page 1A� of 22' Form51 .16 (Rev. 4/24) this Lease (monetary and non-monetary) or has provided Lessor with adequate assurances (a) that within ten (l Oj days from the date of such assumption or assignment, all monetary breaches of this �ease will be cured; and (b) that within thirty (30) days from the date of such assumption, all non-monetary breaches of this Lease will be cured; and (c) that all provisions of this Lease will be satisfactorily performed in the future. 12.7. Permitted Assignments. The following Assignments are permitted under this �ease without Lessor's consent: (a) Assignment caused by the death of a spouse where the full interest of the deceased spouse is Assigned to a surviving spouse who is a co-lessee on this Lease, provided Lessor is notified in writing within thirty (30) days of the assignment; (b) assignment caused by the dissol�tion of the marriage of Lessee when the full interest of one spouse is assigned to the other spouse who is a co-lessee on this Lease, provided �essor is notified in writing within thirty (30) days of the transfer; and (c) substitution or succession of a new trustee if the Lease is held in trust and the Lessee is a trustee or successor trustee thereof, provided Lessor is notified in writing no later than sixty (60) days after the named trustee as appears on the face of this Lease becomes unable or ceases to serve as tr�stee for any reason. 12.8. Lessee Remedies. If Lessor withholds or conditions its consent and Lessee believes that Lessor did so contrary to the terms of this Lease, then Lessee's sole remedy will be to prosecute an action for declaratory relief to determine if �essor properly withheld or conditioned its consent, and Lessee hereby waives all other remedies. Paragraph 13: Breach 13.1 . Events of Breach. All covenants and agreements contained in this Lease are declared to be conditions to this Lease. Lessee's failure to pay rent when due or any other charges under this �ease for five (5) days after written notice from Lessor to Lessee will be considered a monetary breach. �essee's failure to perform any other promise, covenant, or agreement under this Lease for more than thirty (30) days after written notice from Lessor to Lessee will be considered a non-monetary breach. If a non-monetary breach cannot be cured within the thirty (30)-day period, the breach will be deemed to be cured if Lessee begins to cure the breach within the thirty (30)-day period and continues to diligently complete the cure. 13.2. Breach of I.ease. Lessor shall provide written notice to Lessee specifying the Page 15 of 22 Form51 .16 (Rev. 4/24) particulars of the breach. Shovld �essee fail to cure the breach within the period specified in Paragraph 13.1, then Lessor may elect to pursue any available remedies under law, or those specified in paragraph 13.3, below. 13.3. Remedies on Breach of Lease. In addition to any other rights or remedies at law or equity, Lessor may, without further notice, (a) terminate this Lease, reenter and take possession of the Lease Premises and remove all persons and all Improvements therefrom at Lessee's cost; or (b) keep this �ease in effect without declaring this Lease terminated and without terminating Lessee's right to possession, reenter the Lease Premises and occupy the whole or any part for and on account of Lessee and collecfi any unpaid rentals and other charges that have become payable or that may thereafter become payable; or (c) terminate this Lease after reentering the Lease Premises as provided in subclause (b) above. Any notice required to be given by Lessor above will be instead of, and not in addition to, any notice required under the laws of the State of California. 13.4. Determination of Rental Value. If rent under this Lease is calc�lated as percentage of Lessee's income attributable to the Lease Premises and Lessee abandons the Lease Premises, then the reasonable rental val�e shall be the percentage of proceeds Lessor would have received had Lessee operated the �ease Premises in the usual and customary manner. 13.5. Acceptance of Rent When Lessee is in Breach. Lessor's acceptance of any rent shall not be considered a waiver of any preexisting Breach by Lessee other than the fail�re to pay the particular rent accepted regardless of Lessor's knowledge of the preexisting Breach at the time rent is accepted, �nless the breach was a monetary breach and the payment occurs during the cure period specified in Paragraph 13.1 . 13.6. Acceptance of Payments After Lease Termination. Lessee's submission or �essor's acceptance of any payments after the expiration or termination of this Lease shall not reinstate or extend this Lease. Lessor may elect to retain any payment s�bmitted and apply these payments to offset any damages claimed against Lessee; or Lessor may elect to allow a holdover tenancy under Paragraph 14.6; or �essor may elect to refund the payments less a reasonable handling fee. 13.7. Waiver of Righfis. The failure or delay of either party to exercise any right or remedy shall not be construed as a waiver of such right or remedy or any Breach by the other party. Page 1�i of 22 Form51 .16 (Rev. 4/24) Paragraph 14: Conditions of Lease Termination 14.1 . Use of State Land. This Lease authorizes the use or occupation of state land for a fixed term of years without options or rights of renewal. Lessee accepts that future leases authorizing the continued existence of any Improvements constructed or maintained by �essee on the Lease Premises are subject to a discretionary action of the California State Lands Commission. S�bmission of an application for a new lease does not guarantee a new lease will be granted to �essee. Lessee acknowledges that construction of Improvements on the Lease Premises and investment in or obtaining financing for the uses authorized under this Lease is done in fvll understanding that future leases are not guaranteed. �essee also affirmatively represents that the cost of removing Improvements was considered before entering into this Lease and placing or assuming any Improvements on state land. 14.2. Abandonment. Lessee's right of access to the Lease Premises was a material consideration in Lessor iss�ing this Lease. If, without prior notice to �essor, Lessee selis, abandons, or loses title to the upland property adjacent to the �ease Premises, or otherwise loses the legal right to access the Lease Premises, Lessor may deem this an abandonment of the Lease Premises. Lessee must actively maintain and manage any Improvements authorized by this Lease. Should Lessee discontinue use, management, or maintenance of the authorized Improvements, Lessor may deem this an abandonment and elect to terminate the Lease. Alternately, Lessor has the remedy described in California Civil Code section 1951 .4 (Lessor may continue lease in effect after Lessee's breach and abandonment and recover rent as it becomes due if Lessee has right to sublet or assign, subject only to reasonable limitation). Abandonment of the Lease Premises shall not relieve Lessee of any obligations under this Lease. 14.3. Restoration. In issuing this Lease it is �essor's understanding that all Improvements will be removed from state land at the expiration or termination of this Lease. If Lessee abandons the Lease Premises, or Lessor terminates this �ease, or this Lease expires without execution of a new lease authorizing �essee's use of the �ease Premises, Lessee must: 1) remove all Improvements regardless of whether Lessee constructed or placed Improvements together with all debris at its sole expense and risk, restoring the Lease Premises to as close as possible to an unimproved condition to Lessor's satisfaction; and 2) immediately surrender possession of the Lease Premises. Lessor may, in its sole discretion, allow all or any portion of the Improvements to remain in place. In Page 17 of 22 Form51 .16 (Rev. 4/24) carrying out this obligation, Lessee acknowledges that further authorizations, review of the Restoration Plan, and environmental review may be necessary as outlined in Section 14.4 below. 14.4. Two Years Prior to Expiration. (A) If �essee desires to continue the uses authorized under this Lease, Lessee shall submit an application together with all required fees at least two years prior to the expiration of this Lease. Submission of an application does not guarantee a new lease will be granted to Lessee. (B) If Lessee does not desire to occupy the Lease Premises beyond the term of this Lease, then two years prior to the expiration of this Lease, �essee shall submit an application, incl�ding a detailed plan to remove all Improvements and restore the Lease Premises to the condition existing prior to the installation or construction of any Improvements. The plan must include a timeline for obtaining all necessary permits. The restoration plan may require a subsequent environmental review and approval from Lessor. (Cj Lessor may modify annual rent, surety and insurance within the last two years of the Lease. 14.5. Failure to Restore Lease Premises. Lessee's failure to remove improvements, restore the Lease Premises, or surrender possession of fihe Lease Premises at the expiration or sooner termination of this Lease shall nofi constitute a renewal or extension and shall not give �essee any rights in or to the �ease Premises or any part thereof. �essee shall not be entitled to any compensation for Improvements left on the Lease Premises at the termination or expiration of this �ease. Lessor may, in its sole discretion, elect to treat the Improvements as abandoned and remove all or any portion of Improvements from the Lease Premises. �essee's failure to adequately restore the �ease Premises imposes significant financial liability on Lessor. As a result, Lessee shall be responsible for all expenses incurred by Lessor in restoring the �ease Premises, including, without limitation, staff time, environmental work or permitting, contractor costs, and reasonable attorney's fees. 14.6. Holdover. This �ease terminates witho�t f�rther notice at the end of its term. �essor may, in its sole discretion, choose to accept Rent for the Lease Premises and allow a period of holdover tenancy. Any holdover tenancy shall be on a month-to-month basis. Lessee's submittal of annual rent during holdover does not constitute tenancy longer than month-to-month. Any holdover tenancy shall be on the same terms as this �ease insofar as such terms can be applicable to a month-to-month tenancy. The rent for each month or any portion thereof d�ring such holdover period is one hundred fifty percent (150%) of one-twelfth (1/12) of Page 18 of 22 Form51 .16 (Rev. 4/24) the total compensation for the most recent year paid. The month-to-month tenancy may be terminated by �essor upon thirty (30) calendar days' prior written notice to Lessee. 14J. Holdover on I.eases with No Monetary Consideration. In the event this �ease does not require monetary consideration, 14.6 shall continue to apply, and in addition: 1) �essor shail have the right to establish rent based on the fair market value of the Lease Premises, and 2) In no way shall the prior lease consideration limit damages for trespass. 14.8. Quitclaim. In the event this Lease is terminated prior to expiration, Lessee shall deliver a quitclaim of all rights under this �ease to Lessor on request. Lessee shall exec�te and deliver such quificlaim to Lessor in a form provided by Lessor. Should Lessee fail or ref�se to deliver such a release, Lessor may record a written notice reciting such failure or refusal. This written notice shall, from the date of its recordation, be conclusive evidence against �essee of the termination of this �ease and all other claimants. Paragraph 15: Additional Provisions 15.1 . Conflict in Terms. In the case of any conflict between these General Provisions and Special Provisions found in Section 2, the Special Provisions control. 15.2. Boundaries. This Lease does not establish the State's boundaries in so far as it relates to land and resource jurisdiction and ownership and is made without prejudice to either party regarding any land and water boundary or title claims which may be asserted presently or in the future. 15.3. No Waiver. Lessor's acceptance of a late or nonconforming performance shall not constitute a waiver unless such waiver is expressly acknowledged by �essor in writing. Lessor's delay in or omission to exercise any right under this �ease shall not constitute a waiver. 15.4. Time is of the Essence. Time is of the essence for this �ease and each and all of its terms, covenants or conditions in which performance is a factor. 15.5. Notice. All notices required to be given under this �ease shall be given in writing, sent by U.S. Mail or other rep�table private carrier with postage prepaid, to Lessor at the offices of the State �ands Commission and the �essee at the address specified in this Lease. Lessor's staff and �essee may agree to accept any notice by electronic mail. Lessee shall give �essor notice of any change in its Page 19 of 22 Form51 .16 (Rev. 4/24) name or address. 15.6. Consent. Lessor's consent to one transaction or event shall not be deemed to be a consent to any subsequent occurrence. 15.7. Changes. This Lease may only be amended, revised, or supplement by written agreement of the Parties. 15.8. Joint and Several Obligation. If more than one Lessee is a party to this �ease, the obligations of the Lessees shall be joint and several. 15.9. Captions. The section and paragraph captions �sed in this Lease are for the convenience of the Parties. The captions are not controlling and shall have no effect upon the construction or interpretation of this Lease. 15.10. Severability. If any term, covenant, or condition of this Lease is determined by a court of competent j�risdiction to be invalid or unenforceable, the remainder of this Lease shall not be affected thereby, and each term and provision of this Lease shall remain valid and enforceable to the fullest extent permitted by law. 15.1 1 . Representations. Lessee agrees that no representations have been made by �essor or by any person or agent acting for Lessor except those stated in this �ease. This document contains the entire agreement of the Parties. No verbal agreements, representations, warranties, or other understandings affect this �ease. Lessor and Lessee, as a material part of the consideration of this �ease, waive all claims against the other for rescission, damages, or otherwise by reason of any alleged covenant, agreement, or understanding not contained in this Lease. 15.12. Gender and Plurality. In this Lease, words imporfiing any gender include any or all genders, and the singular number includes the plural whenever the context so requires. 15.13. Survival of Certain Covenants. All covenants pertaining to bond, insurance, indemnification, restoration obligations, breach or remedies shall s�rvive the expiration or earlier termination of this Lease �ntil Lessee has fulfilled all obligations to restore the Lease Premises as required by this Lease. 15.14. Counterparts. This agreement may be exec�ted in any number of counterparts and by different Parties in separate counterparts. 15.15. Delegation of Authority. Lessor and Lessee acknowledge that Lessor as defined herein includes the Commission Members, their alternates or designees, Page 20 of 22 Form51 .16 (Rev. 4/24) and the staff of the Commission. The ability of staff of the Commission to give consent, or take other discretionary actions described herein will be as described in the then-current delegation of authority to Commission staff. All other powers are reserved to the Commission. 15.16. Successors. The terms, covenants, and conditions of this Lease shall extend to and be binding upon and inure to the benefit of the heirs, successors, and assigns of the respective parties. [Remainder of the page left intentionally blank.] Page �1 of 22 Form51 .16 (Rev. 4/24) STATE OF CALIFORNIA - STATE �ANDS COMMISSION LEASE NUMBER: 7875 This �ease shall become effective only when approved by and executed on behalf of the State �ands Commission of the State of California and Lessee. The submission of this Lease by Lessor, its agent, or representative for examination by �essee does not constitute an option or offer to lease the Lease Premises upon the terms and conditions contained herein, or a reservation of the Lease Premises in favor of Lessee. Lessee's submission of an executed copy of this �ease to �essor shall constitute an offer to �essor to lease the Lease Premises on the terms and conditions set forth herein. IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the date hereafter affixed. LESSEE: CITY OF REDDING LESSOR: STATE OF CALIFORNIA STATE LANDS COMMISSION gy� -------------------- --- gy� ----------------------------- Robert Brian B�gsch Title: _ Title: Chief, Land Management__ Date: Date: Execution of this document was authorized by the California State �ands Commission on ATTACH ACKNOWLEDGMENT Page 22 of 22 Form51 .16 (Rev. 4/24)