GALLEGOS BROTHERS LLC - Laserfiche WebLink

Home Browse Search

A-2012-206 RENTAL AGREEMENT (Loss of Rents) d This AGREEMENT, made and entered into this 1st day of August, 2012 b and between the property �. Y g Y p p Y owner, Gallegos Brothers, LLC, a California Limited Liability Company (the "Owner"), and the CITY CrV OF SANTA ANA, a charter city and municipal corporation duly organized under the Constitution and laws of the State of California ("City"). 1kL WHEREAS, Owner and City are in negotiations for City's acquisition of certain real property of Owner located in the City of Santa Ana, which is legally described in Exhibit A, attached hereto and incorporated herein ("Property"). WHEREAS, the Property consists of two lots of real property commonly known as 202 North Grand Avenue (APN Nos. 398-453-05 & 398-453-06). WHEREAS, the Property is currently used for commercial purposes. WHEREAS, it is City's desire to minimize or avoid incurring costs, damages, obligations or liabilities C) pursuant to any applicable federal, state or local relocation laws or regulations, including without limitation, the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, 42 U.S.C. 4201-4655, the implementing regulation thereto set forth in 49 CFR Part 24, Government Code Section 7260, et seq. and/or the implementing regulations thereto set forth in Title 25, section 6000, et seq. of the Code of Regulations (collectively "Relocation Costs") due to City's possible acquisition of the Property, or any portion thereof, and Owner desires not to lose rental income due to. the City's potential acquisition of the Property. WHEREAS, Owner and City agree to the accomplishment of this objective by allowing City to undertake lease obligations of those tenants that have or may vacate the Property before the City takes title to the Property or before the City takes possession of the Property, whichever is earlier. NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, City and Owner agree as follows: 1. The term of this Agreement ("Term") shall be for a period commencing on August 1, 2012 ("Commencement Date") and shall terminate automatically on the earlier of (a) the date City acquires legal title to the Property or (b) the date City acquires legal possession to the Property by means of a court.order of pre judgment possession in an eminent domain proceeding or (c) the date ninety days after City notifies Owner in writing that it will not seek acquisition of the Property for purposes of the Grand Avenue Widening project. 2. During the Term, City will pay to Owner on the first of each month following the Commencement Date, the monthly rental rate shown below as each unit is vacated, plus any utilities, services, operating expenses, taxes and rental adjustments as provided in the existing leases (the "Substitute Rent"), in consideration for Owner's agreement not to rent the vacant unit to any other person or entity and for performance of Owner's other obligations under this Agreement. City will pay a 10% late fee on the Substitute Rent if it is received after the tenth of each month. (00029870.2 )