HomeMy WebLinkAboutCABAN, GEORGE & ANCA 1-2005
N-2005-100
INSURANCE HOl 0;; FILE
WORK MAY rial P,<OCEEO
CLERK OF COUNCIL
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LICENSE AGREEMENT
BETWEEN
THE CITY OF SANTA ANA
AND GEORGE AND ANCA CABAN
dba CAFE EXPRESS
THIS AGREEMENT ("Agreement") is made and entered into this / gth- day of
1"~L1ST , 2005, by and between the City of Santa Ana, a charter city and municipal
corporation, duly organized and exiting under the constitution and laws of the State of
California, herein referred to as "Licensor", and George and Anca Caban, doing business
as the Cafe Express, herein referred to as "Licensee".
The parties hereto agree as follows:
ARTICLE 1 - TERM OF LICENSE
Section 1.01 Premises and Use
(a) Licensor owns the real property described in Exhibit "A" attached hereto and
made a part hereof (the "Property"), commonly know as The Depot at Santa
Ana located at 1000 East Santa Ana Boulevard, Santa Ana, California.
Licensor hereby grants to Licensee the privilege of a personal, non-exclusive,
revocable license for use of the area designated as Suite 102 (the "Premises")
for Licensee's business purpose of running a restaurant type facility for the
patrons of The Depot.
(b) Licensee's use of the Premises shall be comprised of the normal business
hours of The Depot, Monday through Sunday.
(c) Licensee hereby accepts the Premises in their condition existing as of the
Commencement Date of this Agreement.
(d) Any signage Licensee intends to place upon the Premises is subject to prior
approval of the Licensor, and must be compliant with The Depot guidelines as
well as City of Santa Ana local regulations.
(e) Upon the expiration or termination of this Agreement, Licensee shall
surrender the Premises to Licensor in good and clean condition, less ordinary
wear and tear.
Section 1.02 Term
(a) The term of this Agreement shall be on a month-to-month basis.
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(b) Notice of intent to vacate or termination of the Licensor-Licensee
relationship is only valid with at least ninety (90) days prior written notice
to the other party.
Section 1.03 Compensation/Security Deposit
(a) Upon the Commencement Date, Licensee shall pay to Licensor monthly
compensation in the amount of$2178.00 per month for use of the Premises.
Said amount consists of$1485.00 for monthly compensation and $693.00 for
Common Area Maintenance fees. Payments will be due upon execution of
this Agreement and thereafter on or before the 5th of each month, payable to
"The City of Santa Ana" and remitted to: The Depot at Santa Ana, 1000 East
Santa Ana Blvd., Suite 108, Santa Ana, CA 92701. A late charge often
percent (10%) shall be applied after any payment hereunder is due but unpaid.
In addition, one and a half percent (1 Yz%) interest per month shall be added
for each month that payment hereunder is due but unpaid.
(b) Licensee has previously deposited with Licensor the sum of$I,OOO.OO as a
security deposit. The deposit will be held without liability for interest as
security for faithful performance by Licensee.
( c) Compensation for any period during the License term which is less than one
(1) month shall be a prorated portion of the monthly installment herein, based
upon a thirty (30) day month.
Section 1.04 Non-Recording
Neither party shall record this Agreement.
ARTICLE 2 - TAXES AND UTILITIES
Section 2.01 Taxes
Licensee shall pay before they become delinquent all taxes, assessments or other charges
levied or imposed by any governmental entity on Licensee's Premises. If such taxes are
not assessed separately to Licensee, Licensor shall provide Licensee with evidence,
reasonably acceptable to Licensee, of such tax assessment and the amount due, which is
attributable to Licensee.
Section 2.02 Utilities
(a) Licensor shall pay for all electricity, gas, water sewer and janitorial services
furnished to the Premises for the use, operation and maintenance of Licensee's premises
during the Term ofthis Agreement, or any extension thereof, and for the removal of trash
from the Premises during the Term of this Agreement, or any extension thereof
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(b) Licensee shall have the right to improve the present electrical and
telecommunication cabling and outlets and any other such infrastructure that would
reasonably be associated with Licensee's intended use of the Premises, all at Licensee's
sole cost and expense. Any communication and/or computer lines brought in by Licensee
must be reviewed and approved by City staff; Licensee cannot splice into Licensor's
existing City telephone or computer lines.
ARTICLE 3 - IMPROVEMENTS AND ACCESS
Section 3.01 The Premises/Miscellaneons
(a) Licensee shall repair any damage to the Premises and will leave the
Premises in satisfactory condition as approved in writing by Licensor.
Licensee shall be required to remove all its fixtures upon
expiration/termination of the Agreement, and if Licensee fails to do so
within thirty (30) days, Licensor may elect to do so at Licensee's sole cost
and expense, or elect to not remove such fixtures, in which case, such
fixtures shall become the property of Licensor, at Licensor's option. Any
personal property, equipment or other improvements that are not removed
within said thirty-day period shall become the property of Licensor, at
Licensor's option. Licensee's obligation to pay compensation to Licensor
shall not cease, unless and until the fixtures that Licensee must remove,
are removed to Licensor's approval.
(b) Licensee shall provide access to the Premises to the Licensor, and its
employees, agents, contractors and subcontractors, twenty-four (24)
hours a day, seven (7) days a week. Except in the case of
emergencies, Licensor shall give Licensee twenty-four (24) hours
notice prior to entry into the Premises.
(c) Licensee shall, at its sole cost and expense, maintain and repair the
Premises including, but not limited to, the removal of all trash, debris,
graffiti, as well as any special intensive cleaning. If Licensee causes
any damage to the Property, to the Premises or to access roadways or
other nearby facilities, it shall properly repair same as specified by
Licensor.
(d) Upon the expiration or termination of this Agreement, Licensor shall
approve in writing the surrender ofthe Premises by Licensee only after
being satisfied that the Premises has been left in good and clean condition,
less ordinary wear and tear.
(d) Quiet Enjoyment. Licensee shall have quiet possession of the
Premises for the entire term hereof, subject to all the provisions of this
Agreement.
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Section 3.02 Liens
Licensee will not permit any mechanics' or materialmens' or other liens to stand against
the Premises by reason of any use or occupancy by Licensee, or any person claiming
under Licensee.
ARTICLE 4 - INDEMNITY AND INSURANCE
Section 4.01 Indemnification, Defense, Hold Harmless
Licensee shall protect, defend, indemnify and save and hold harmless Licensor, its
officers, officials, employees, and agents from and against any and all liability, loss,
damage, expenses, costs (including without limitation costs and fees of litigation of any
nature) arising out of or in connection with Licensee's performance of this Agreement or
Licensee's failure to comply with any of Licensee' s obligations contained in the
Agreement by Licensee, its officers, agents or employees except such loss or damage
which was caused by the sole negligence or willful misconduct of Licensor. In the event
Licensor is named as codefendant, Licensee shall notify Licensor of such fact and shall
represent Licensor in such legal action unless Licensor undertakes to represent itself as
codefendant in such legal action, in which event Licensor shall bear its own litigation
costs, expenses and attorney's fees. Licensee further agrees to indemnify, hold harmless,
and pay all costs for the defense of the Licensor, including fees and costs for special
counsel to be selected by Licensor, regarding any action by a third party challenging the
validity of this Agreement, or asserting that personal injury, damages, just compensation,
restitution, judicial or equitable relief due to personal or property rights arises by reason
of the terms of, or effects arising from this Agreement. Licensor may make all
reasonable decisions with respect to its representation in any legal proceeding.
Section 4.02 Insurance
In addition to the Licensee's covenant to indemnify and hold harmless Licensor, Licensee
shall obtain and furnish to Licensor, a policy of general public liability insurance,
commercial general liability, covering the Premises. The policy shall indemnify Licensee
and Licensor, their officers, agents and employees, while acting within the scope oftheir
duties, against any and all claims arising out of or in connection with the Premises and
shall provide coverage in not less than the following amount: combined single limit
bodily injury, personal injury and property damage, liability, of$I,OOO,OOO per
occurrence. The City also requires an Additional Insured Endorsement, as attached and
incorporated herein as Exhibit B. The policy shall name the City of Santa Ana, its
agents, officers, employees and volunteers as Additional Insureds, and shall specifically
provide that any insurance coverage which may be applicable to the Premises shall be
deemed excess coverage and that Licensee's insurance shall be primary. Under no
circumstances shall the above-mentioned insurance contain a "deductible" or any other
similar form of limitation on the required coverage. Licensee is required to give the
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Licensor no less than thirty (30) days notice of cancellation or reduction in coverage. No
cancellation provision in any insurance policy shall be construed in derogation of the
continuous duty of Licensee to furnish insurance during the term of this Agreement.
Section 4.03 Property Insurance
Licensee shall provide to Licensor, before entering the Premises, and shall maintain in
force during the entire term of this Agreement, property insurance with extended
coverage endorsements thereon, on the Premises in an amount equal to the full
replacement cost and/or value thereof; this policy shall contain a replacement cost
endorsement naming Licensee as the insured and shall not contain a co-insurance penalty
provision. The policy shall contain a special endorsement that such proceeds shall be
used to repair or rebuild any such improvements so damaged or destroyed; and if not so
used, such proceeds shall be paid to Licensor. The proceeds of any such insurance
payable to Licensor shall be used for rebuilding or repair as necessary to restore the
Premises at the discretion of Licensor. The policy shall name Licensor as an Additional
Insured.
The policy or policies shall also contain the following endorsements:
I. The insurer will not cancel or reduce the insured's coverage without
thirty (30) days prior written notice to Licensor; and
2. Licensor will not be responsible for premiums or assessments on the
policy.
A complete and signed certificate of insurance with all endorsements required by this
Section shall be filed with Licensor prior to the execution of this Agreement. At least
thirty (30) days prior to the expiration of any such policy, a signed and complete
certification of insurance showing that coverage has been renewed, shall be filed with
Licensor.
Section 4.04 Certificates of Insurance; Additional Insured Endorsements
Prior to execution of this Agreement, Licensee shall furnish to Licensor certificates of
insurance and additional insured endorsements to each of Licensee's insurance policies,
subject to approval of the City Attorney, evidencing the foregoing insurance coverages as
required by this Agreement; these certificates shall:
I. provide the name and policy number of each carrier and policy;
2. shall state that the policy is currently in force; and
3. shall promise to provide that such policies will not be canceled, suspended,
voided, reduced in coverage or in limits, or modified without thirty (30) days
prior written notice of Licensor.
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Licensee shall maintain the foregoing insurance coverages in force throughout the term of
this Agreement. The requirement for carrying the foregoing insurance coverages shall
not derogate from the provisions for indemnification of Licensor by Licensee under the
Agreement. Licensor or its representatives shall at all times have the right to demand the
original or a copy of all these policies of insurance, which Licensee shall provide within
fifteen (15) days of Licensor's request.
ARTICLE 5 - TERMINATION AND DEFAULT
Section 5.01 Termination in the Event of Casualty or Condemnation
(a) In the event of any damage, destruction or condemnation of the Premises,
which renders the Premises unusable or inoperable in Licensor's judgment,
Licensee shall have the right, but not the obligation, to terminate the
Agreement with respect to the subject Premises by giving written notice to
Licensor within thirty (30) days after such damage, destruction or
condemnation. If by virtue of such casualty or condemnation, Licensor
determines that the Premises is no longer adequate for Licensee to continue
its operations, or any repairs to the Premises have not been completed or
cannot reasonably be completed within sixty (60) days from the date of the
damage, destruction or condemnation. This Agreement will become null and
void.
(b) In the event of condemnation, unless Licensee is allowed by the condemning
authority to continue its operations in the Premises, this Agreement shall
terminate as of the date title to the Property vests in the condemning
authority or Licensee is required to cease its operations, whichever is earlier.
If any property described herein or hereinafter added hereto is taken in
eminent domain, the entire award shall be paid to Licensor.
Section 5.02 Termination
This Agreement may be terminated by either party on thirty (30) days prior written
notice, after the initial six-month term has expired.
ARTICLE 6 -ASSIGNMENT, ABANDONMENT, DEFAULT, INSOLVENCY
Section 6.01 Assignment
Licensee shall not, either voluntarily or by operation of law, assign, transfer, mortgage,
pledge, or encumber this License or any interest therein, and shall not sublet said
Premises or any part thereof, or any right or privilege appurLicensee thereto, or allow any
other person (the employees, agents, servants, and invitees of Licensee excepted) to
occupy or use said Premises, or any portion thereof, without the prior written consent of
the Licensor.
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Section 6.02 Abandonment by Licensee
Should Licensee breach this Agreement and abandon the Premises prior to the expiration
of the Term, Licensor may recover at least one month's compensation for Licensee's
failure to give notice of such termination/vacation of the Premises.
Section 6.03 Default by Licensee
Should Licensee default in the performance of any of the terms, conditions, or obligations
contained in this Agreement, Licensor may, in addition to the remedies specified in
Section 6.02 ofthis Agreement, re-enter and regain possession ofthe Premises in the
manner provided by the laws of unlawful detainer of the State of California then in effect.
Section 6.04 Insolvency of Licensee
The insolvency of Licensee as evidenced by a receiver being appointed to take possession
of all or substantially all of the property of Licensee, or the making ofa general
assignment for the benefit of creditors by Licensee, or the filing of a petition in
bankruptcy shall terminate this Agreement and entitle Licensor to re-enter and regain
possession ofthe Premises.
Section 6.05 Cumulative Remedies
The remedies given to Licensor in this Agreement shall not be exclusive, but shall be
cumulative and in addition to all remedies now and hereafter allowed by law or elsewhere
provided in this Agreement.
Section 6.06 Waiver of Breach
The waiver by Licensor of any breach by Licensee of any ofthe provisions of this
Agreement shall not constitute a continuing waiver or a waiver of any subsequent breach
by Licensee either of the same or another provision of this Agreement.
ARTICLE 7 -HAZARDOUS MATERIALS
Section 7.01
At the time of execution of this Agreement, Licensor warrants that the Premises is clean
and contains no known hazardous materials. Licensee represents and warrants that it will
comply with all environmental laws during the term of this Agreement; its use ofthe
Premises herein will not generate any hazardous substance, and it will not store or
dispose on the Premises nor transport to or over the Premises any hazardous substance.
Licensee further agrees to clean-up and remediate any hazardous substance on the
Premises and Property, and hold Licensor harmless from and indemnify Licensor against
any reLicense of any such hazardous substance and any damage, loss, or expense or
liability resulting from such reLicense including all attorneys' fees, costs and penalties
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incurred as a result thereof except any reLicense caused by the negligence of Licensor, its
employees or agents. "Hazardous substance" shall be interpreted broadly to mean any
substance or material defined or designated as hazardous or toxic waste, hazardous or
toxic material, hazardous or toxic or radioactive substance, or other similar term by any
federal, state or local environmental law, regulation or rule presently in effect or
promulgated in the future, as such laws, regulations or rules may be amended from time
to time; and it shall be interpreted to include, but not be limited to, any substance which
after reLicense into the environment will or may reasonably be anticipated to cause
sickness, death or disease.
ARTICLE 8 - MISCELLANEOUS
Section 8.01 Force Majeure - Unavoidable Delays
Should the performance of any act required by this Agreement to be performed by either
Licensor or Licensee be prevented or delayed by reason of an act of God, strike, lockout,
labor troubles, inability to secure materials, restrictive govemmentallaws or regulations,
or any other cause except financial inability not the fault of the party required to perform
the act, the time for performance of the act will be extended for a period equivalent to the
period of delay, and performance of the act during the period of delay will be excused,
provided, however, that nothing contained in this section shall excuse the prompt
payment of compensation by Licensee as required by this Agreement or the performance
of any act rendered difficult solely because ofthe financial condition ofthe party,
Licensor or Licensee, required to perform the act.
Section 8.02 Notice
Any written notice or required submittals, given under the terms of this Agreement, shall
be delivered personally, or mailed, certified mail, postage prepaid, addressed to the party
concerned as follows:
To Licensor:
Clerk of the City Council
City of Santa Ana
20 Civic Center Plaza (M-30)
P.O. Box 1988
Santa Ana, CA 92702-1988
Telefacsimile (714) 647-6956
With courtesy copies to:
Executive Director of the Community Development Agency
City of Santa Ana
20 Civic Center Plaza (M-25)
P.O. Box 1988
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Santa Ana, CA 92702
Telefacsimile (714) 647-6549
and,
City Attorney
City of Santa Ana
20 Civic Center Plaza (M-29)
P.O. Box 1988
Santa Ana, CA 92702
Telefacsimile (714) 647-6515
To Licensee:
and AnGlk~
e Express
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a, CA 921(}1
A party may change its address by giving notice in writing to the other party. Thereafter,
any notice, tender, demand, delivery, or other communication shall be addressed and
transmitted to the new address. If sent by mail, any notice, tender, demand, delivery, or
other communication shall be effective or deemed to have been given three (3) days after
it has been deposited in the United States mail, duly registered or certified, with postage
prepaid, and addressed as set forth above. If sent by telefacsimile, any notice, tender,
demand, delivery, or other communication shall be effective or deemed to have been
given twenty-four (24) hours after the time set forth on the transmission report issued by
the transmitting facsimile machine, addressed as set forth above. For purposes of
calculating these time frames, weekends, federal, state, County or City holidays shall be
excluded.
Section 8.03 Contract Administrator
The Executive Director ofthe Community Development Agency, or his/her designee,
shall be City's Administrator for this Agreement and all approval and notices required to
be given herein shall be so directed and addressed.
Section 8.04 Compliance with Laws
Licensee shall at Licensee's own cost and expense comply with all statutes, ordinances,
regulations, and requirements of all governmental entities, including federal and state,
county and municipal, relating to Licensee's use and occupancy of the Premises whether
such statute, ordinances, regulations, and requirements be now in force or hereinafter
enacted. The judgment of any court of competent jurisdiction, or the admission by
Licensee in a proceeding brought against Licensee by any government entity, that
Licensee has violated any such statute, ordinance, regulation, or requirement shall be
conclusive as between Licensor and Licensee and shall be considered grounds for
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governmental approvals, required in connection with Licensee's activities hereunder, and
update such permits/approvals as necessary.
Section 8.05 Binding on Heirs and Successors
This Agreement shall be binding on and shall inure to the benefit of the heirs, executors,
administrators, successors, and assigns of the parties hereto. The provisions ofthis
Section shall not be deemed to be a waiver of any of the conditions against assignment
set forth herein.
Section 8.06 Partial Invalidity
Should any provision of this Agreement be held by a court of competent jurisdiction to be
either invalid, void, or unenforceable, the remaining provisions of this Agreement shall
remain in full force and effect unimpaired by the holding, so long as the reasonable
expectations of the parties hereto are not materially impaired.
Section 8.07 Waste or Nuisance
Licensee shall not cornmit or permit the commission by others of any waste on the
Premises. Licensee shall not maintain, commit, or permit the maintenance or
commission of any nuisance as defined in Section 3479 and/or Section 3480 of the
California Civil Code on the Premises; and Licensee shall not use or permit the use of the
Premises for any unlawful purpose.
Section 8.08 Repairs
Licensee shall be required to make any repairs to the Premises occurring from damages
caused by Licensee, its employees, agents, contractors, and subcontractors.
Section 8.09 Time of Essence
Time is expressly declared to be of the essence in this Agreement.
Section 8.10 Governing Law
This Agreement has been executed and delivered in the State of California and the
validity, interpretation, performance, and enforcement of any of the clauses of this
Agreement shall be determined and governed by the laws of the State of California. Both
parties further agree that Orange County, California, shall be the venue for any action or
proceeding that may be brought or arise out of, in connection with or by reason ofthis
Agreement.
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Section 8.11 Survival
Terms and conditions of this Agreement which by their sense and context survive the
termination or expiration of this Agreement, shall so survive.
Section 8.12 State of Emergency/Public Necessity
Due to the fact that The Depot has been designated a Homeland Security Evacuation
Center, upon the declaration of a state of emergency/public necessity, Licensor may, give
immediate notice in writing to Licensee to suspend or revoke normal operation under this
Agreement without liability to Licensee when the emergency/public necessity so
requires, or to suspend operation immediately hereunder temporarily in the event of such
public emergency, as may be determined by the City Manager. Such suspension will
terminate as soon as the public necessity or emergency no longer exists. Licensee shall
be compensated for any time of suspended use or operation by Licensor in the form of an
equal amount of time added onto the term of the Agreement by Licensor (i.e. Licensee
suspends operation for 2 months due to state of emergency, Agreement Term is extended
an additional 2 months).
Section 8.13 Conflict ofInterest
Licensee covenants that it presently has no interest and shall not have interests, direct or
indirect, which would conflict in any manner with performance of this Agreement.
Section 8.14 Attorney's Fees
In the event suit is brought by either party to enforce the terms and provisions of this
Agreement or to secure the performance hereof, each party shall bear its own attorney's
fees.
Section 8.15 Exclusivity and Amendment
This Agreement constitutes the entire agreement and understanding between Licensor
and Licensee respecting the Premises and correctly sets forth the obligations of Licensor
and Licensee to each other as of such date. Any agreements or representations respecting
the Premises or their licensing between the parties not expressly set forth in this
instrument are null and void. This Agreement or any part of it may not be changed,
altered, modified, limited or extended orally or by any Agreement between the parties,
unless such Agreement is expressed in writing, signed and acknowledged by Licensor
and Licensee, or their successors in interest.
Section 8.16 Captions
Captions used in this Agreement are for ease of reference only and shall not affect the
construction or interpretation of this Agreement.
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Section 8.17 Non-Discrimination
Licensee shall not discriminate because ofrace, color, creed, religion, sex, marital status,
sexual orientation, age, national origin, ancestry, or disability, as defined and prohibited
by applicable law, in the recruitment, selection, training, utilization, promotion,
termination or other employment related activities. Licensee affirms that it is an equal
opportunity employer and shall comply with all applicable federal, state and local laws
and regulations.
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SIGNATURES ON NEXT PAGE
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by and through their authorized officers the day, month and year first written above.
ATTEST:
CITY OF SANTA ANA
(2~
DAVIDN. REA
City Manager
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PATRICIAE. HEALY
Clerk ofthe Council
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APPROVED AS TO FORM:
Joseph W. Fletcher, City Attorney
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BY: Lisa E. Storck
Assistant City Attorney
LICENSEE- "Cafe Express"
RECO MENDED FOR APPROVAL:
Patricia C. Whitaker, Executive Director
Community Development Agency
George Caban:
v0--
Anca Caban: C~'
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