Loading...
HomeMy WebLinkAbout _ 4.6(d)--Consider Lease for the Redding Sports Park Restaurant � � �' � � � � � � ' � �' � � ' � ` CITY OF REDDING REPORT TO THE CITY COUNCIL MEETING DATE: June 17,2025 FROM: Travis Menne, Director of ITElVI NO. 4.6(d) Community Services ***APPROVED BY*** � ��" �� Nri����� k?�,� _ � �,, a,,.� ���v� � , Tram=is ra�nc�,�' �rt�c r��`�irii�'unit�.�'ae���ices t,`�),f?t1�� rS' �P�it�,C�i ��t t' 6�'1 1,''2{}?w tmenne@cityofredding.org btippin@cityofredding.org SUBJECT: 4.6(d)--Consider Redding Sports Park Lease and Concessions Agreement Recommendation Authorize and approve the following: (1) Authorize the City Manager or designee to negotiate the fmal terms of the Redding Sports Park Lease and Concessions Agreement with the Shasta Regional Soccer Association (SRSA) for a two-year term with three, one year options, utilizing a net income split model that provides the City of Redding with 75 percent of a11 remaining net income after monthly expenses, and SRSA would keep the remaining 25 percent; and (2) Authorize the Mayor to execute the agreement when complete. Fiscal Impact The Redding Sports Park Lease and Concessions Agreement (Agreement) a net incoine split model that provides the City of Redding (City) with 75 percent of all remaining net income after monthly expenses. The Shasta Regional Soccer Association (SRSA) would keep the remaining 25 percent. Revenue projections are speculative at this point, but staff estimates the revenue split model would generate significantly more funds for the Redding Sports Park (Sports Park) and SRSA than a traditional rent/lease model. Enhanced revenue is essential to the Sports Park's ability to be financially sustainable. Each entity has a vested interest in the success of the food and beverage operations, as the revenue generated only helps support the operations of each sides' respective facility, which may reduce future needs for maintenance funding at the California Soccer Park. Further benefits include revenue splitting from sponsorships, shared maintenance responsibilities, and general cooperative programming. Alternative Action The City Council (Council) could choose not to authorize staff to finalize the agreement or provide staff alternate direction. Report to Redding City Council June 11,2025 Re: 4.6(d)--Consider Lease for the Redding Sports Park Restaurant Page 2 Background/Analysis At the March 4, 2025, Council direct staff to begin negotiations with SRSA regarding food and beverage operations. Since that time, staff inet with SRSA and drafted the attached agreement. The model allows the City to focus on the Sports Park programming and events, and lets SRSA use their expertise in concessions and restaurants to maximize the revenue food and beverage operations. The agreement is nearly complete, but staff and SRSA are still negotiating some of the final terms and responsibilities. To meet timelines for beginning operations in summer 2025, staff is seeking approval for the City Manager to complete the negotiations and the agreement, which is conditioned upon City Attorney approval. Since the proposed agreement term is two-years with three, one-year options for a total of five years, the agreement wi11 not trigger the Surplus Land Act. Environmental Review This is not a project defined under the California Environmental Quality Act, and no further action is required. Council Prior�ity/City ManageN Goals • Budget and Financial Management— "Achieve balanced and stable 10-year Financial Plans far all Funds." • Economic Development — "Facilitate and become a catalys� for economic development in Redding to create jobs, retain current businesses and attract new ones, and encourage investment in the community." Attachments Draft Lease and Concessions Agreement REDDING SPORTS PARK LEASE AND CONCESSIONS AGREEIVIENT THIS LEASE AGREEMENT is made and entered in this day of , 2025, by and between the CITY OF REDDING, a Municipal Corporation and General Law City, hereinafter referred to as "Lessor" and the SHASTA REGIONAL SOCCER ASSOCIATION, a Non-Profit Corporation, hereinafter referred to as "Lessee;" WITNESSETH: WHEREAS, Lessor owns certain lands and premises at 20155 Viking Way, 2355 Abernathy Way, 2175 Abernathy Way, and 2357 Abernathy Way, all in Redding, California(Redding Sports Park); and WHEREAS,portions of 20155 Viking Way, 2355 Abernathy Way,2175 Abernathy Way are not needed for municipal purposes in the immediate future; and WHEREAS,Lessee desires to provide food and beverage services to the Redding Sports Park; and WHEREAS, L,essee has need for commercial restaurant space and concessions areas to carry on its non-profit charitable activities; NOW, THEREFORE,IT IS AGREED by and between the parties hereto as follows: SECTION 1. TERM Lessor, for and in consideration of the covenants, conditions, and agreements herein set forth to be kept and performed by Lessee, does hereby lease unto Lessee, subject to a11 of the conditions, covenants, terms and agreements hereinafter set forth, those parts of the Redding Sports Park described in E�iibit "A" attached hereto and incorporated herein by reference (hereinafter called "Premises") for a term of two (2) years commencing on XXXX, 2025. By mutual agreement of Lessee and Lessar, this agreement may be extended on an annual basis for three (3) consecutive one-year periods, through XX��,2030. SECTION 2. LEASE AREA AND CONCESSIONS AREA A. Lessee shall lease the areas depicted in Exhibit A, attached to and incorporated herein by reference. B. Lessee shall have the sole right to sell and serve food and beverages throughout the Concession. Area as outlined in Exhibit A, attached to and incorporated herein by reference. Additional food and beverage vendors may operate in Concession Area if mutually approved by Lessor and Lessee. Any revenue generated by outside food and beverage vendors shall be split as outlined in Section 3. C. Lessee shall, at Lessee's own cost and expense, comply with all statutes, ordinances, regulations and requirements of all governmental entities, federal, state and county or municipal,relating to food service. If any license,permit,or other governmental authorization. is required for the Lessee's operation,the Lessee shall procure and maintain it, at Lessee's sole cost and expense, throughout the term of this Agreement. SECTION 3. RENT AND OT�IER CHARGES A. For the purposes of this agreement, no rent shall be charged to Lessee by Lessor. B. In lieu of rent, Lessee shall split the net income generated through the food and beverage services at the Redding Sports Park with Lessor in the following formula: 1. Lessee shall retain 25 percent of all net income generated during the course of the calendar month for which the monthly report is prepared. 2. Lessee shall remit to Lessor the remaining 75 percent of a11 net income generated during the course of the calendar month for which the monthly report is prepared. C. Net income shall be defined as the remainder of monthly income after a11 monthly expense deductions are subtracted from the gross monthly income. D. Gross monthly income sha11 be defined as all funds generated prior to consideration of monthly expenses, by food and beverage services, sponsorships, contracts, sales, or any income generated by Lessee using the Premises during the course of the calendar month for which the monthly report is prepared. E. Monthly expenses sha11 be mutually approved by both parties and may include, but are not limited to,personnel costs,food, supplies,building maintenance,utilities as outlined in Section 4, building maintenance as outlined in Section 5, and other contracts during the course of the calendar month for which the monthly report is prepared. Monthly expenses paid by Lessee to Lessor shall be accounted for prior to the split of net income and paid to City directly as a separate line item in monthly payments and included with the monthly report. F. Income payments to Lessor sha11 be payable, monthly, no more than 30 days after the end of the previous month. Lessor is entitled to collect from Lessee, and Lessee agrees to pay Lessor, upon invoice,the split of net income set forth herein.A monthly report shall be prepared stating all revenue, monthly expenses, and the net income split amounts. An annual summary report sha11 be submitted at the end of the City's Fiscal Year in June. Any amount owed more than thirty(30) days past due shall be subject to a service charge of one and one-half(1.5%)per month,based on an annual rate of eighteen percent(18%).Without prejudice to any other remedy which otherwise might be used for non-payment of the net income split 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 ads 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 installment or rent thereafter due hereunder, and each and every day thereafter the same shall be and become additional monies owed, recoverable by Lessor in the same manner and with like remedies as though it were originally a part of the net income split as set forth herein above. G. Lessee shall maintain financial records for five (5) years following the submittal of any monthly or annual report. Reeords, books and any account statements shall be kept safe and intact and made available for examination or audit by Lessor at any reasonable time during this period. Lessor sha11 have the right to make abstracts or copies of any or all of the records, and examine or copy any and a11 contracts, licenses or other agreements. H. Lessee shall immediately renovate the interior of the premises. Lessor shall not collect payment from Lessee until the fu11 value of the interior upgrades has been recuperated by Lessee. The cost of said improvements, which will be performed per Section 11, shall be a one-time monthly expense froln which the amount is reduced every month by the net income. The remaining balance of the cost of improvements shall roll over monthly until such time as the net income retained by Lessee equals the cost of the agreed upon improvements. After the improvement value is recuperated by Lessee, the net income shall be split per Section 3. B. SECTION 4. UTILITIES AND SERVICES Lessor shall directly pay the costs for the following utility services that are furnished to Lessee at said Premises.Accounts to be held by Lessar shall expressly include wastewater,water,electricity, janitorial,pest, and security. Lessee shall pay a portion of Park utilities as follows: A. Lessee shall pay a flat utility fee of$4,000 per month, covering a portion of electricity, water,wastewater,pest control, security and solid waste. B. Lessee shall pay 100% of natural gas costs. C. Lessee sha11 pay 0% of janitorial services for janitorial activities in the Lease Area, but shall be partially responsible for janitorial services per Section 5. D. Lessee sha11 pay for 100% of their own phone, cable, and internet service. Lessor shall. collaborate to provide access to vendors as needed to perform installations, and sha11 have the sole right to approve installation methods. Installation shall be performed at Lessee's sole cost. SECTION 5. MAINTENANCE A. Lessee accepts that the Premises as being in good condition and repair, and sha11, upon termination of this Lease Agreement or earlier cancellation thereof,leave said Premises in as good a condition and repair or better as originally issued at the contract date,reasonable use and wear thereof excepted. B. At their own expense, Lessee shall be responsible for maintaining or providing the following: 1. General interior building maintenance and repairs, including interior plumbing, electrical, lighting. 2. Lessee shall maintain any restaurant equipment, up to and including fu11 replacement as-needed. 3. Lessee shall maintain any electrical appliances required or desired by Lessee in the use of said Premises, up to and including fu11 replacement as-needed. 4. Restaurant signage. 5. Lessee sha11 at all times keep the Premises in a safe, clean,neat, and sanitary condition, subject to the limitation herein above set forth in Section 7, and shall comply with all laws, ordinances, and regulations. 6. Lessee shall arrange and provide its own janitorial services to maintain the interior of said Premises in a neat and clean condition at all times 7. No outdoor storage shall be permitted on the leased Premises, nor is the keeping of animals permitted. C. At their own expense, Lessor shall be responsible for maintaining and providing the following: 1. Pest Control. 2. Maintenance,by contract or otherwise for heating and air conditioning equipment. 3. Exterior building maintenance and repairs, including roofing, exterior walls, exterior plumbing, windows, and doors. 4. Once daily cleaning of the restrooms in Restaurant and adjacent to the Field House Interior Lease Space (both as depicted in Exhibit A) at the beginning or at the end of each day the Lessee ar Lessor utilize the restrooms. SECTION 6. TAXES A. Lessee shall promptly pay any taxes assessed against its personal property, and any possessory interest tax levied by reason of their occupancy of the subject Premises and the improvements constructed. B. Lessee agrees to pay any and a11 taxes which may be levied and assessed against the Premises, in addition to the rental payments provided. C. 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. SECTION 7. USE OF PREMISES,EQUIPMENT AND CONCESSION AREA A. The Premises shall be used by Lessee for the purposes of preparing, selling and consumption of food and beverages and for no other purpose. In addition, no overnight lodging for any reason whatsoever shall be permitted on the leased Premises. B. It is the intent of this Lease Agreement that the usage of the leased Premises shall be confined to food or beverage services, even if such activities are customary to activity of Lessee. C. No activities shall be conducted or carried on within the demised Premises in violation of any ordinance, law, statute, bylaw, arder, or rule of any governmental agency having jurisdiction thereover. D. The Concession Area will be available to Lessee to serve food and beverages, as depicted in Exhibit A. Sales outside of the Premises, its walk-up windows or any other appurtenant structure may be approved by the Director of Community Services, or their delegate. ` E. Upon commencement of the Lease term, the Premises shall be fully furnished with restaurant kitchen equipment and operable by Lessee. Lessee shall maintain or replace the equipment at their own expense as required to perform the activities noted in Section 5 (a). Upon termination of the lease, the premises and the included equipment sha11 be returned in the condition in. which the Lessor provided at the commencement of the Lease. Any equipment replaced by the Lessee shall become the property of the Lessor. Lessor sha11 have no ongoing obligation to maintain or replace kitchen equipment after the commencement of the Lease. F. Unless otherwise closed by Lessor, Lessee shall operate at least five (5)days per week. Lessor shall strive to maintain at least five (5) days of programming per week. G. Lessor and Lessee hereby agree to be collaborative partners, and parties shall be mutuaIly responsible for advertising,programming, or otherwise encouraging patronship. SECTION 8. COMPLIANCE WITH LAWS Lessee shall comply with all laws, statutes and regulations of local, state and federal authority. Lessor shall make any alterations, maintenance, or restoration to the Premises required by such laws that Lessee is obligated to make. The judgement of any court of competent jurisdiction or the admission of Lessee in any action ar proceeding against Lessee whether Lessor be a party to or not, that nay such ordinance or statute has been violated in the use of the Premises shall be conclusive of the fact as between Lessor and the offending party and sha11 subject this Lease Agreement to immediate termination at the option of Lessor, subject to lessee's right to cure any default of this Lease Agreement as hereinafter set forth. SECTION 9. DISCRIMINATION Lessee sha11 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 shall have the privilege to refuse admittance to any person or persons for just cause, but not to discruninate by virtue of race, color, creed, religion, sex, age, or national origin. SECTION 10. 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. SECTION 11.IMPROVEMENTS; 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 with the prior written consent of Lessor, which shall not be unreasonably withheld. When granting its consent, Lessor may impose any conditions it deems appropriate,including,without limitation, the approval of plans and specifications and obtaining of specified insurance. As a condition precedent to such written consent of Lessor, Lessee agrees to obtain and deliver to Lessor written and unconditional waivers of inechanics' and materialmen's liens upon the land and building,of which the Premises are a part, for all work,labor and services to be performed and materials to be furnished by them in connection with such work, signed by all contractors, subcontractors, materialmen, and laborers to be involved 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 furnished to Lessee, such lien shall be discharged by Lessee within thirty (30) days thereafter, at Lessee sole cost and expense, by the payment thereof or by filing any bond required by law. If Lessee shall fail to discharge any such mechanics' or materialmen's lien, Lessor may, at its option, discharge the same and treat the cost thereof as additional rent payable with the monthly installment of rent next becoming due; it being hereby expressly covenanted and agreed that such discharge by Lessar 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 shall not be deemed to be an agreement or consent by lessor to subject Lessor's interest in the Premises, the building, or the land to any mechanics' or materialmen's liens which may be filed in respect to any such work done by ar on behalf of Lessee. B. All alterations, exterior decorations, additions, or improvements,including wall to wall carpet, upon the Premises (whether with or without prior consent of Lessor), but excluding Lessee's fixtures,equipment,furniture, and furnishings, shall, at the election of Lessor,remain upon the Premises at the expiration or termination of this Lease Agreement without disturbance, molestation, or injury. Should Lessor elect that alterations, exterior decorations, additions, or improvement made by Lessee upon the Premises, including telephone or computer cabling, security systems, conduit, or wiring, may be removed upon expiration or termination of the Lease Agreement, Lessee hereby agrees to cause same to be removed at Lessee's sole cost and expense, and Lessee hereby agrees to reimburse Lessor for the cost of such removal, together with any and all damages which Lessor may suffer and sustain by reason of the failure of Lessee to remove the same. C. Lessee shall indemnify and hold Lessor harmless from and against any and a11 expenses, liens, claims, or damages to persons ar property which arise directly or indirectly by reason of the make of any such alterations, exterior decorations, additions, or improvements. If any such work is done without the prior written consent of Lessor, Lessor may correct or remove the same and Lessee shall be liable for any and all expenses incurred by Lessor in the performance of this work. A11 alterations, exterior decorations, additions, or improvelnent 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 their obligations under this Lease Agreement, Lessee shall have the right to remove, prior to expiration of the term hereof, all movable fixtures, furniture, furnishings, or equipment, installed in the Premises at the expense of Lessee. If such property of Lessee is not removed by Lessee prior to the expiration or termination of this Lease Agreelnent, the same shall become the property of Lessor and shall be surrendered with the Premises as part thereof. SECTION 12. SIGNS Lessee shall be allowed to post identification signs,to be approved by Lessor,which approval will not be unreasonably withheld. SECTION 13.PROPERTY OF LESSEE Fixtures, equipment, and personal property of Lessee shall be removed by same within a reasonable time after termination or earlier cancellation of this Lease Agreement; provided, however,that any fixture which cannot be removed without damaging said Premises shall become the property of Lessor. Equipment purchased by Lessee to replace equipment originally issued on the contract date shall become the property of Lessor. SECTION 14. HOLD HARMLESS; INSUI2ANCE A. This Lease Agreement is granted upon the express condition that Lessor, its officers, agent 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 hereunder leased, including claims of Lessee, it's officers, agents, employees, members, or invitees. Lessee shall indemnify and save harmless Lessor,its officers,agents and employees, from any and all liability, loss, cost or obligation on account of or arising out of any such injury, death, or loss caused by the negligence or other legal fault of Lessee or its officers, agents, employees, members or invitees. B. Lessee sha11 procure and maintain for the duration of this LEASE AGREEMENT the following insurance against claims for injuries to persons or damages to property which may arise from or in connection with L,essee's operation and use of the Premises. The cost of such insurance shall be borne by Lessee. Coverage shall include commercial general liability insurance at least as broad as ISO occurrence form CG 0001 with limits of $1,000,000 per occurrence/$2,000,000 general aggregate. The generalliability policy is to contain, or be endorsed to contain, the following provisions: 1. Lessor, its officers, officials, employees, agents, and volunteers are to be covered as additional insureds as respects: liability arising out of activities performed by or on behalf of the Lessee, and premises owned, occupied or used by the Lessee. The coverage shall contain no special limitations of the scope of protections afforded to Lessor, its officers, officials, employees, agents, or volunteers. 2. Lessee's insurance coverage shall be primary insurance as respects Lessor, its officers, officials, employees, agents, and volunteers. Any insurance or self-insurance maintained by Lessor, its officers, officials, employees, agents, or volunteers sha11 be in excess of Lessee's insurance and shall not contribute with it. 3. Lessee's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to t1�e limits of the insurer's liability. 4. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled except after thirty (30) days prior written notice has been given to Lessor. S. Lessee sha11 furnish Lessor with certificates of insurance and original endorsements effecting coverage required by this clause. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behal£ All endorsements are to be received and approved by the Risk Manager of Lessor prior to the commencement date of this L,ease Agreement. C. It is further understood and agreed as a condition of this Lease Agreement that should Lessee hire an employee or employees, Lessee will provide worker's compensation insurance on its employees as required by the Labor Code, and shall furnish Lessor with a Certificate evidencing such insurance. To obtain an exemption from this requirement should Lessee have no employees, Lessee sha11 provide the Risk Manager of Lessor with a letter stating that it is not employing any person or persons in any manner so as to become subject to the workers' compensation laws of California;provided,however,that should Lessee later become subject to the workers' compensation provisions of the Labor Code, it wi11 forthwith comply with the insurance requirements set forth above. SECTION 15. ASSIGNMENT AND SUBLETTING A. Lessee sha11 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 a11ow any other person or entity (except Lessee's authorized representatives) to occupy or use all or any part of the Premises, without first obtaining Lessor's prior written consent. Any assignment, encumbrance, or sublease without Lessor's consent shall be voidable and, at the sole election of Lessor, shall constitute a default of this Lease Agreement. No consent to any assignment, encumbrance, or sublease, shall 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 bankrupt; 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 constitute 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. SECTION 16. LESSOR'S ENTRY ON PREMISES A. Lessor and its authorized agents and employees sha11 have the right to enter the Premises at a11 reasonable times to determine whether the Premises are in good condition and whether Lessee is complying with Lessee's obligations 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 sha11 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 wil� cause the least possible inconvenience, annoyance or disturbance to Lessee. SECTION 17. WAIVER No delay or omission in the exercise of any right or remedy of Lessor on any default by Lessee shall impair such a right or remedy or be construed as a waiver. The receipt and acceptance by Lessor of delinquent rent sha11 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, sha11 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. Only a notice from Lessor to Lessee sha11 constitute acceptance of the surrender of the Premises and accomplish a termination of this Lease Agreement. L,essor's consent to or approval of any act by Lessee requiring Lessor's consent or approval 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. SECTION 18. 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. 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 within the ten (10) calendar day period and diligently and in good faith continues to cure the default. C. Notices given under this section sha11 specify the alleged default and the applicable provisions of this Lease Agreement, and shall demand that Lessee perform the provisions of this L,ease Agreement or pay the rent that is in arrears, as the case may be, within the applicable period of time, or guit 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 notice requirements set forth in this section is to extend the notice requirements of the unlawful detainer statutes in California. SECTION 19. EMINENT DOMAIN A. In the event the Premises sha11 be appropriated or taken under the power of eminent domain. by any public or quasi-public authority, 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, 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 sha11 thereupon be released from any liability thereafter accruing hereunder. 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 charged paid in advance. Lessee's right to receive compensation or damages for its improvements, fixtures, personal property, and of the moving or relocation expenses sha11 not be affected in any manner hereby, and Lessee reserves the right to bring an action for such compensation or damages, including loss of business, leasehold interest, and other reasonable damages. SECTION 20. BANKRUPTCY OR INSOLVENCY If Lessee 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 sha11 discontinue business or fail in business, or abandon or vacate said real property, or make an assignment for the benefit of creditors,or if said real property should come into possession and control of any trustee in bankruptcy, or if any receiver should be appointed in any action or proceeding with power to take charge, possession, control, or care of said property, Lessor shall have the option to forthwith terminate this Lease agreement, and re- enter the property and take possession thereof. In no event shall this Lease agreement be deemed an asset of Lessee after adjudication in bankruptcy. SECTION 21. TERMINATION A. Either with cause,or termination by mutual agreement,this Lease Agreement may be canceled without cause by either party at any time during the term or any extended term of this Lease Agreement upon giving written notice six (6) months in advance of such cancellation. If this Lease Agreement is canceled by either party pursuant to this section, Lessor shall not be obligated to save or protect any equipment remaining on the Premises which have been abandoned. Lessee shall remove any and all of Lessee's personal property from the Premises on or before the date of cancellation. B. In the event of cancellation by either party pursuant to this section, Lessee shall prorate any rent amount owed by Lessee through the date of cancellation and shall pay such prorated amount to Lessor with the cancellation notice. Similarly, any rent amount paid in advance by Lessee that is for a period of time beyond the date of cancellation shall be reimbursed to Lessee by Lessor. SECTION 22. SURRENDER OF PREMISES On the expiration, cancellation or termination of this Lease Agreement, Lessee shall surrender possession of the Premises to Lessor,deliver a11 keys to the locks on the Premises,and make known to Lessor the combination of all combination locks on the Premises. Lessee sha11 return the Premises and all equipment and�xtures of Lessor therein to Lessor in broom-clean condition and in as good a condition as when Lessee originally took possession,ordinary wear and tear excepted, failing which Lessor may restore the Premises and such equipment and fixtures to such condition and Lessee shall pay the cost thereof to Lessor on demand. SECTION 23. SETTLEMENT DISPUTES It is hereby agreed by Lessor and Lessee that in cases of unresolved disputes between the occupants of the Premises which involve the Premises, such dispute sha11 be referred to the City Manager of the City of Redding, whose decision thereon shall be final. SECTION 24. ADMINISTRATION BY LESSOR Whenever Lessee is required to secure the approval or consent of Lessor under this Lease Agreement, "Lessor" shall mean the City Manager of the City of Redding. SECTION 25. ENTIRE AGREEMENT AND MODIFICATION OR AMENDMENT This Lease Agreement, which includes a11 exhibits attached hereto and incorporated by reference herein, contains all the representations and the entire understanding and agreement 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 City Manager is delegated authority to amend this Lease in any manner which does not result in a decrease in the rent due under this Lease. SECTION 26. INVALID 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 shall in no way effect any other covenant, condition, or provision herein contain, provided that the validity of any such covenant, condition or provision does not materially prejudice either Lessor or Lessee in their respective rights and obligations contained in the valid covenants, conditions, and provisions of this Lease Agreement. SECTION 27. NOTICES All notices and other communications authorized or required under this Lease Agreement sha11 be in writing and shall be given by (a) personal delivery, (b) mailing by certi�ed mail or registered mai1, return receipt reguested, 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: LESSEE LESSOR Shasta Regional Soccer Association City of Redding ATTN: Brian Salado ATTN: Travis Menne President Director of Community Services 9800 Old Oregon Trail 777 Cypress Avenue Redding, California 96003 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. SECTION 28. ATTORNEYS' FEES In any dispute between Lessor and Lessee, whether or not resulting in litigation, the prevailing party shall be entitled to recover from the other party a11 reasonable costs, including without limitation, reasonable attorney's fees and experts' fees. "Prevailing party" shall include without limitation, a party who dismisses an action for specific performance or for damages in exchange for sums allegedly due, performance for covenants allegedly breached or consideration substantially equal to the relief sought in the action,or which receives from the other party,in connection with any dispute,performance substantially equivalent to any of these. No sum for attorney fees shall be included in calculating the amount of a judgment for purposes of deciding whether a party is entitled to its costs or attorney fees. SECTION 29. BINDING ON SUCCESSORS Subject to the provisions in this Lease Agreement respecting assignment or subletting, a11 covenants, terms and conditions in this Lease Agreement sha11 extend to and bind the successors,heirs, and assigns of the respective parties to this Lease Agreement. SECTION 30. TIME OF ESSENCE Time is of the essence of this Lease Agreement and of each and every provision in this Lease Agreement. SECTION 31. SURVNAL Sections 3 and 14 shall survive termination of�he Lease. IN WITNESS WHEREOF, the parties hereto have executed this Lease Agreement in the presence of their respective officers duly authorized in that behalf on the day and year set forth above. CITY OF REDDING, A Municipal Corporation Dated: , 2025 JACK 1VIUNNS, Mayor ATTEST: APPROVED AS TO FORM: CHRISTIAN M. CURTIS City Attorney SHARLENE TIPTON, City Clerk By: SHASTA REGIONAL SOCCER ASSOCIATION Dated: , 2025 BRIAN SALADO, President � }'` K Yi�3.' �`bd � e ,., r� &tR`�°: �,p�,t` .7�'�."''�,',3y�,r't � fi ' :4!a d,t i, ,b7°§ ,. �� � ������� �� � '.M �,..,x ,:, � � „.,. ';;��`�{�� , x,r''�7�� '. �1 't, � �s� � , rv.� �,. , 4 >, x,� d. -� �q� �'r { " ,. . « , � . ... �y4 4„ +� .� �� � .. ... . . .... . � � . a. {�,Ki t. , ... . �4 y' Y�x � - " ��=t, s.� �< <, � "' "„ � .. jt ,t�; ti , ,, b, �l ek�� ;.�j3 �, }$ ���<' ,}� .f4i @k, �f �<Y �„ l I���� `br,Y ti" ,i4K y3hM1 h x j�,, `' { �t.` k {� ��p i Yj, P, i ��� � � ���� � ��� , � Ar. � � ��� � � 3� ; #'� ,, j� � ,�,� �z�, �,� �;� � � � �a F.; � 4'a yha� ; i w si , �, ,, . ,. krb �tf S �� � i� .��� ,� )r`���t q S. � g i,d �� � i t` � � . §,� y ���, .�� BI tgk���� `� ,�� �{` ,aii ``�'s��t ., 3 t�',.� F ft4 ����Y��'� ( ! � � . �`. � 1�r1 '� '} Y �, � ��.„ r �� y '��:�x+� � � p � Y� ��� � t ��`t 1 �3 p"* f 4 � ia� � �!6.°�'�r���S��jS i�z t� � �k, �t��;j}�'£!j � t,�'�� " � „ ir,,. � � 4 � $ kt i $ i q "�( ` �� �� "`,�g�j��r ,. C�� ��{ �{N�A4� �� �� � �V'i � / S ; . ��! +`��'� (� ��� ��•�� � {ut �� �'1 tt�t�J��'��i°' t� t` �,i '�t �u�} i�a II k t ut'A� ,�"��.} � � i 1��. � a� t Y }6 �z'' �`� � ��(��Sh 5 �g�-t 1 j rc� tj 4�r;�t��S �rc� � �,j. i't��zS �S{ i i '��<� �� �'d�.� �.����,.�� {�s���f,� �� ���'S' �t, r= ��J �'���,}��a n t:��t� {�'�,r t , � � �.� �, �S} a s. i s � � s � , , 4}���' '" � �i �. yi I" ��!„;�.,�y,� j t { '+�i�. 4 �.`if'1` �h� � � y( ii � � �r � � < <s �� ��'t � �� s e� �wtu� �� 3 , � � c � � �i ' �V � {j y E�R � i„ § {g �., ' t r.��f � ^" C � t '`�". �� ;,t{�� � � � , ��� � � ��� � ; � ��; � B s;u., r S ) : ✓, x Qt. ni �� ...�. ' � 1 i� ��$ S r� 4' 1 t 4 �i� �� �t�r �W VP yj �; '�� �F' t i:y ,�, �y��j�� .P Nu 1 � � � � F � ����' . . � +�y� � ,,. f ir` +�p i •. y ?o\i � � � �'�� �st� ���J� � �� � � � � . � � '�, � ��� � � ; �"�"'� 1' b �� k� ;�}�: ��'si, ti� �, � ;€' �}��i,r� t` Str�t`s . t � � , � , � s� »? ,,�i ;s > � i „ � � �.,. 1. ,,� #�''� t '��4 r�t{r ,� "` �� � ,,t a Uy ��c ; � `���� + ,� �,t v � � �,� +��� � �� fi �; �� , p, �t ..�,r +t��� '�� � ��` ��tr � ��r. .. i {� ,��; � 6` �� � E i `�j ^�" 3�i �f � i � +� ' S�°�t� t �Yc . �{ x � ,M4 ,%,� { ���r ,4 ��Y,; #x ? �s ��tfi 't� . '�t. ,t4 ?� b. %�m li`?�; �2} �3 p��a� t 1.�'. � �ktvi�t���k�?+3,saf�� � #� 'y;.:�{ ;. �,b f ��. r ��^ KY,� ,; y �S } f �t � �� ���' a�. � �;, � � �. �� .. r, ,. ,y Y� e , � `� a ;, ,�. .., ¢ iv�k.� �,; ��'' ;a£� � ',i,�.� 4'E r" �C .r !t ,��<;,1' � s��i, ro a * �T�.Ct y"��y"'%��4��u,}� �'t � . � r ,,n ., „ <.^ `, � � w ; ^ ' �. . ��� � < a,n ,. � «� �� s., kr��i�� '� ° .,z�. ... . „ :. � � » , ,,. � ' .. '� � , � . �.s.�„�..�r.� �,.� � .. .. . . . .. .. .. . ...... . . .... ... . ...... . . .. .... ,., .... . .... .. ......... . t�S�,�,.. 1���Id��� �p���� �'���C ��� �1� �c�r�����i�r� �r�� �.��s��r�� �. a�� �� t �: Fc�r ����ris�r� �.���� s��c� Q �� ��� �Q� F��t ���.�� �l��i�g �11�� R��di��, ����� Exhibit B � , f� _�____ _. � �: _ e. _.�x�. _._ � _�� __-__ __. _ � ��_ :�_��___ �-�� �.�.���..�� � �r, �; � � �---•______ _ ___ _ __�_— =_ __ -�-v__._____ �.--� ;,� , ���'�``�� _ ���� � ���� t � � � �� ,� °.� y, � � � ,�� `�� ���� � ,�� r�,�_ �I` z �, �� � � � � J ``��- w' �� � � � e� ..�� � -� ; ,� �� t' �- �--. � ..� � ��w � `` ,z .���._��.�:��_��:��_`� � , � ` �"`�, r� �� ,= v � � � � , a#, �, .��, � � , `' �� �� �y 1��,.�"� ,�..�.... �� °l*� '`� � r, . � . � � if � � f € � i � � � �� � �� . ��� � ' ��.. E �.. . r�� n ` r� � , ��' �� � � �- ���" * . . _ �_ f� . � a�'� �' � ._� _�w.�m ` �_ '� � � ���� ` � � � ����� ������� �, � ;m � �� � �r = � �" � � �� � � � � � :{ � ��� t�a��� ma w � ��� t� � f ..__� �_..�__._. t =�� �_ _...._.._. ...�,_w.r� .� „„.�, °i .� T .�....,...._._..�.., _, �.,� � � � �t ,, � �� � �i-� �auzauxcraue.mu � ��� ���. . � t�5 m�a an una wx rema wwxa�. �,�e ma�ieuz�au� s �( �{ ���t7 . M�# � ... .. . . ��„ . � � ��sc.a tn�cn.�ti w�.ti ep� F � E. eC � t ? ...�J 3 .��.+ � ....♦ �����i � � � '� .tl� J�� �� ,........ '� � . � y' . �� �(. �. i � s. � � i �.�.i �.� �t;.. 5^ ,,�" �Y �,r� J� . " ��4 t i � � �`� �� � �� �i � � �� _ � � � _. � �� ° _� __..,..� � :�. � �, q �� �i .. '�, y�--• . , . . .. .. . . ... . —�=�' r'`F .��. � ��;,t , �_ —� �.. �...__ _"_-... .. _ .w.m.. .{ � 1 � � �����. e `. . .1�,. �.,.� ,� � � �, � .. �� .��.,..a.,w,.,.�m.�.a..�... . . . � .���... _.., � .. _�__. ,...�.�.. ....„_ . w�..,..,.�, .,�,....,., .�w.�.. �.....�.�.. � _....�.._ � �" � 1 � �� ,� _�5�--- � -�-� � � , �-- g ,,'« ._.;� .., �t ... cut ar�wav w � k' N,�. `� ���[w so�ae� �`:� 7 � � a�uu suvat�ea�u,�r .. a�ue�re�mae.�+a . � � #'#�AtG q�fSkWb .. L�t�:w...,,,�...... "�,.a...�..tL..,...z..,...,..,. .a:.u- ...�... �.. . ....w_.. «_ �.G'`f *,,..�---�—�—�a---�---�.�_.�-m..-.::»'. J�.-:. , m...,.;�-,w�`..:',;.:.,�................�W........._..._........�_..,,,..........,ww.�°r.,........:,:w";.w.�'���=.-"=__`=.... � ...�,..�,�.—._.;:.,.....�r._,..,.�,.....�.,...,:....,.,,�.�,.,.,,.! r�. Redding Sports Park MOU Lease Area 2 20155 Viking Way Redding, CA 96003