HomeMy WebLinkAboutFIESTA MARKETPLACE PARTNERS #1 -2009INSURANCE NOT REQUIRED
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1. PARTIES
LEASE AGREEMENT BETWEEN
THE CITY OF SANTA ANA AND
FIESTA MARKETPLACE PARTNERS #1
A-2009-108
This Lease is made and entered by and between Fiesta Marketplace Partners #1
("Landlord") and the City of Santa Ana, a charter city and municipal corporation duly
organized and existing under the Constitution and laws of the state of California
("Tenant").
2. PREMISES
Landlord does hereby lease to Tenant, and Tenant hereby leases from Landlord
that certain office space ("Premises") indicated on Exhibit A, attached hereto and
incorporated herein, said Premises being agreed, for purpose of this Lease, to have an
area of approximately Three Thousand Nine Hundred Ten (3,910) square feet, being
situated within that certain building known as 305 E. Fourth Street, Second Floor, in the
City of Santa Ana 92701 ("Property").
3. TERM OF LEASE
The term of this Lease shall be for one (1) year, commencing on the first (1St) day
of August 2009, and ending on the thirty-first (31St) day of July, 2010. Upon expiration
of said term, there shall be two 1-year options, each exercisable at the sole option of the
Tenant.
4. RENT/IMPROVEMENTS
(a) Rent. Tenant shall pay Landlord monthly rent in the amount of Five Thousand
Eight Hundred Sixty Five Dollars ($5,865.00) for the one-year term. Tenant agrees to pay
rent payments on or before the fifth (5th) day of each full calendar month during the term
hereof. Rent for any period during the rental 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.
(b) Annual Adjustment. There shall be a 2% annual increase in the rent amount at
the time each option to renew is exercised.
(c) Improvements. Landlord shall provide the following modifications to the
Property/Premises at no cost to the Tenant so long as Tenant exercises at least one 1-year
option. Should Tenant terminate this Lease after the one (1) year term, Tenant will be
required to reimburse Landlord for half of the Improvement costs. Landlord shall
provide Tenant with documentation pertaining to the cost of the Improvements prior to
the time of execution of this Agreement. The Improvements shall consist of the
following:
(1) construct a divider wall (L-shaped) to separate SAPD and front
reception area from Parking Meter operations;
(2) construct a divider wall between two restrooms and construct a
doorway opening on east side so each operation will have their own
restroom;
(3) reconfigure lights and switches;
(4) install locks on front office (#'s 5 & 6 in drawing) for SAPD security;
(5) either relocate cabinets or request new in file/storage area;
(6) replace metal industrial entry doors on east wall with doors that match
those on front;
(7) remove "Downtown Development" signage from the canopy on 4cn
Street.
5. USE
Tenant shall use the Premises for general office purposes, and shall not use or
permit the Premises to be used for any other purpose without the prior written consent of
Landlord.
Tenant shall be entitled to access and use of all facilities located on and within the
Property.
Tenant shall not do or permit anything to be done in or about the Premises, nor
bring or keep anything therein which will in any way increase the existing rate of, or
affect any fire or other insurance upon the building or any of its contents. Tenant shall
not do or permit anything to be done in or about the Premises which will in any way
obstruct or interfere with the rights of other tenants or occupants of the Property, or injure
or annoy them, or use or allow the Premises to be used for any improper, immoral
unlawful, or objectionable purpose, nor shall Tenant cause, maintain or permit any
nuisance in, on, or about the Premises.
6. COMPLIANCE WITH LAW
Tenant shall not use the Premises, or permit anything to be done in or about the
Premises, which will in any way conflict with any law, statute, ordinance, or
governmental rule or regulation now in force, or which may hereafter be enacted or
promulgated. Tenant shall, at its sole cost and expense, promptly comply with all laws,
statutes, ordinances, and governmental rules, regulations, or requirements now in force or
relating to, or affecting the condition, use, or occupancy of the Premises, excluding
structural changes not related to or affected by Tenant's improvements or acts.
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7. REPAIRS
Tenant shall, at Tenant's sole cost and expense, keep the Premises and every part
thereof in good condition and repair, damage thereto from causes beyond the reasonable
control of Tenant and ordinary wear and tear excepted. Tenant shal l upon the expiration
or sooner termination of this Lease, surrender the Premises to the Landlord in good
condition, ordinary wear and tear and damage from causes beyond the reasonable control
of Tenant excepted.
Not withstanding the provisions contained herein, Landlord shall repair and
maintain the structural portions of the Property, including the basic plumbing, air
conditioning, heating and electrical systems, installed or furnished by Landlord, unless
such maintenance and repairs are caused in whole or in part by the act, neglect, fault or
omission of any duty by the Tenant, its agents, employees or invitees, in which case
Tenant shall pay to Landlord the reasonable cost of such maintenance and repairs.
Landlord shall not be in breach of its obligations under this article unless
Landlord fails to make repairs or perform maintenance which Landlord is obligated to
perform hereunder, and such failure persists for an unreasonable time after written notice
of the need for such repairs or maintenance is given to Landlord by Tenant.
8. ASSIGNMENT AND SUBLETTING
Tenant shall not, either voluntarily or by operation of law, assign, transfer,
mortgage, pledge, or encumber this lease or any interest therein, and shall not sublet said
Premises or any part thereof, or any right or privilege appurtenant thereto, or allow any
other person (the employees, agents, servants, and invitees of Tenant excepted) to occupy
or use said Premises, or any portion thereof, without the prior written consent of the
Landlord.
9. HOLD HARMLESS
Tenant shall indemnify Landlord against all claims, damages, losses, costs,
liabilities and expenses, arising from Tenant's use of the Premises for the conduct of its
business, or from any activity, work, or other thing done, permitted, or suffered by the
Tenant in or about the building, and shall further indemnify and hold harmless Landlord
against and from any and all claims arising from any breach or default in the performance
or any obligation on Tenant's part to be performed under the terms of this Lease, or
arising from any act or negligence of the Tenant, or any officer, agent, employee, guest,
or invitee of Tenant, and from and against all costs, attorney's fees, expenses and
liabilities incurred by any such claim or any action or proceeding brought thereon and, in
any case, action, or proceeding brought against Landlord by reason of any such claim.
Landlord or its agents shall not be liable for any damage to property entrusted to
employees of the building, nor for loss or damage to any property by theft or otherwise,
nor for any injury to or damage to persons or property resulting from fire, explosion,
falling plaster, steam, gas, electricity, water, or rain which may leak from any part of the
building or from the pipes, appliances, or plumbing works therein or from the roof of any
structure on the Property, or from any other place resulting from dampness or any other
cause whatsoever, unless caused by or due to negligence of Landlord, its agents, servants
or employees for failing to repair such condition(s) within a reasonable time after written
notice of the need for such repair is given to Landlord by Tenant.
Tenant shall give prompt notice to Landlord with respect to any defects, fire or
accidents observed by Tenant on the Premises, or on the Property, or of defects therein,
or in the fixtures or equipment.
10. SUBROGATION
As long as their respective insurers so permit, Landlord and Tenant hereby
mutually waive their respective rights of recovery against each other for any loss insured
by fire, extended coverage and other property insurance policies existing for the benefit
of the respective parties. Each party shall obtain any special endorsements, if required by
their insurer to evidence compliance with the aforementioned waiver.
11. SERVICES AND UTILITIES
Landlord agrees to furnish to the Premises, on all days that the Property is open to
the public, subject to the rules and regulations of the Property, water and electricity
suitable for the intended use of the Premises, heat, ventilation and air conditioning
required for the comfortable use and occupation of the Premises. Landlord agrees to
provide janitorial services pursuant to Exhibit B, "Janitorial Specifications", a copy of
which is attached hereto and incorporated herein. The Landlord shall also maintain the
plumbing, gas, air conditioning and electrical systems on the Property, as well as the
common areas of the Property.
Landlord shall pay the cost of providing the above utilities, and shall determine
the amount expended in the first twelve months of the Lease as a "Base Year".
Assuming that the options to renew are exercised, the Tenant shall pay the cost of all
such utilities to the extent such exceed the cost in the Base Year. Landlord shall bill
Tenant for such additional utility costs as additional rent, on a quarterly or other
convenient basis, which shall be due and payable by Tenant within thirty (30) days after
receipt. Tenant shall be entitled to, and Landlord shall provide, accounting records to
confirm the cost of utilities over the Base Year cost.
12. RULES AND REGULATIONS
Tenant shall faithfully observe and comply with the rules and regulations that
Landlord shall from time to time promulgate. Landlord reserves the right from time to
time to make all reasonable modifications to said rules. The additions and modifications
to those rules shall be binding upon Tenant upon delivery of a copy of them to Tenant.
13. ENTRY BY LANDLORD
Landlord reserves and shall at any and all times have the right to enter the
Premises, with reasonable notice to Tenant, for the purposes of inspection, supplying
janitorial service and any other service to be provided by Landlord to Tenant hereunder,
and to alter, improve, or repair the Premises, providing that the business of the Tenant
shall not be interfered with unreasonably.
14. RECONSTRUCTION
In the event that the Premises or the building of which the Premises are a part are
damaged by fire or other perils covered by extended coverage insurance, Landlord agrees
to forthwith repair the same; and this Lease shall remain in full force and effect, except
that Tenant shall be entitled to a proportionate reduction, to be based upon the extent to
which the making of such repair shall materially interfere with the business carried on by
the Tenant in the Premises.
In the event that the Premises or the building of which the Premises are a part are
damaged as a result of any cause other than the perils covered by fire and extended
coverage insurance, then Landlord shall repair the same, provided the extent of the
destruction be less than ten percent (10%) of the then full replacement cost of the
Premises or the building of which the Premises are a part. In the event the destruction of
the Premises or the building is greater than ten percent (10%) of the full replacement cost,
then Landlord shall have the option: (1) to repair or restore such damage, this Lease
continuing in full force and effect, but the rent to be proportionately reduced as
hereinabove in this article provided; or (2) give notice to Tenant within sixty days (60) of
the damage, at which time this Lease shall expire and all interests of the Tenant in the
Premises shall terminate on the date so specified in such notice and the rent, reduced by a
proportionate amount based upon the extent, if any, to which such damage materially
interfered with the business carried on by the Tenant in the Premises, shall be paid up to
the date of such termination.
The Tenant shall not be entitled to any compensation or damages from Landlord
for loss of the use of the whole or any part of the Premises, Tenant's personal property, or
any inconvenience or annoyance occasioned by such damage, repair, reconstruction, or
restoration.
15. DEFAULT, REMEDIES
A. Default. The occurrence of any one or more of the following events shall
constitute a default under this Lease by Tenant:
1. Non-curable defaults:
(a) The vacating or abandonment of the Premises by Tenant.
(b) Any attempted or involuntary transfer of Tenant's interest in this Lease
without Landlord's prior consent.
(c) If Tenant makes, or has made, or furnishes any warranty, representation or
statement to Landlord in connection with the Lease which is or was false or
misleading in any material respect when made or furnished.
2. Curable defaults:
(a) The failure by Tenant to make any payment of rent or any other payment
required to be made by Tenant hereunder, as and when due, where such
failure shall continue for a period of three (3) days after written notice thereof
by Landlord to Tenant, this Lease shall be terminable at Landlord's option.
(b) The failure by Tenant to observe or perform any of the covenants, conditions,
or provisions of this Lease to be observed or performed by the Tenant, where
such failure shall continue for a period of thirty (30) days after written notice
thereof by Landlord to Tenant; provided; however, that if the nature of
Tenant's default is such that more than thirty (30) days was reasonably
required for its cure, then Tenant shall not be deemed to be in default if
Tenant commences such cure within said thirty (30) day period, and thereafter
diligently prosecutes such cure to completion.
B. Remedies. In the event of any non-curable default or breach by Tenant,
Landlord shall have the right to terminate this Lease and Tenant's right to possession of
the Premises, and Tenant shall immediately surrender possession of the Premises to
Landlord. If Landlord terminates this Lease and Tenant's right to possession for the
Premises, Landlord may recover the following from Tenant:
(a) The worth at the time of award of the unpaid rent which was due, owing and
unpaid by Tenant to Owner at the time of termination;
(b) The worthy at the time of the award of the amount by which the unpaid rent
for the balance of the Lease term after the time of award exceeds the amount
of rental loss which Tenant proves could be reasonably avoided;
(c) Pursuing any other remedies now or hereafter available to Landlord under the
laws or any judicial decision of the state in which the Premises are located.
16. PARKING
Tenant shall have the right to use the parking facilities of the building in common
with other tenants or occupants of the Property.
17. ATTORNEY FEES AND COSTS
In the event that any action is instituted to enforce payment or performance under
this Agreement, or otherwise in connection with this Agreement, the parties agree that the
prevailing party shall be reimbursed by the other party for all costs and attorneys' fees
incurred by the prevailing party in such action.
18. GENERAL PROVISIONS
Waiver. The waiver by Landlord of any term, covenant or condition herein
contained shall not be deemed to be a waiver of such term, covenant, or condition on any
subsequent breach of the same or any other term, covenant, or condition herein contained.
The subsequent acceptance of rent hereunder by Landlord shall not be deemed to be a
waiver of any preceding breach by Tenant of any term, covenant, or condition of this
lease, other than the failure of the Tenant to pay the particular rental so accepted,
regardless of Landlord's knowledge of such preceding breach at the time of the
acceptance of such rent.
Time. Time is of the essence of this Lease, and each and all of its provisions in
which performance is a factor.
Successors and Assigns. The covenants and conditions herein contained, subject
to the provisions as to assignment, apply to and bind the heirs, successors, executors,
administrators, and assigns of the parties hereto.
Quiet Possession. Upon Tenant paying the rent reserved hereunder, and
observing and performing all of the covenants, conditions, and provisions on Tenant's
part to be observed and performed hereunder, Tenant shall have quiet possession of the
Premises for the entire term hereof, subject to all the provisions of this Lease.
Prior Agreements. This Lease contains all of the agreements of the parties hereto
with respect to any matter covered or mentioned in this Lease, and no prior agreements or
understanding pertaining to any such matters shall be effective for any purpose; no
provision of this lease may be amended or added to except by an agreement in writing
signed by the parties hereto or their respective successors-in-interest. This Lease shall not
be effective or binding on any party until fully executed by both parties hereto.
Inability to Perform. This Lease and the obligations of the Tenant hereunder shall
not be affected or impaired because the Landlord is unable to fulfill any of its obligations
hereunder, or is delayed on doing so, if such inability or delay is caused by reason of
strike, labor troubles, acts of God, or any other cause beyond the reasonable control of the
Landlord.
Severability. Any provision of this lease which shal l prove to be invalid, void, or
illegal shall in no way affect, impair, or invalidate any other provision hereof, and such
other provision shall remain in full force and effect.
Cumulative Remedies. No remedy or election hereunder shall be deemed
exclusive but shall, wherever possible, be cumulative with all other remedies at law or in
equity.
Choice of Law. This Lease shall be governed by the laws of the State of
California, with venue in the courts of Orange County.
18. NOTICES
All such notices and demands which may or are to be required or permitted
to be given by either party to the other hereunder shall be in writing. All notices and
demands sent by either party shall be sent by United States Postal Service, postage
prepaid, addressed as follows:
To Tenant--
City of Santa Ana
Community Development Agency
20 Civic Center Plaza (M-25)
Santa Ana, CA 92701
ATTN: Cynthia J. Nelson
To Landlord--
S & A Properties
P.O. BOX 10728
Costa Mesa, CA 92627-0728
ATTN: Irving M. Chase
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.
ATTEST:
Patricia E. Healy
Clerk of the Council
APPROVED AS TO FORM:
Joseph W. Fletcher
City Attorney
BY: Lisa E. Storck
Assistant City Attorney
RECOMMENDED FOR APPROVAL:
"Tenant"
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Cyn is J. Nel n, Deputy City Manager
for Development Services
CITY OF SANTA ANA
David N. Ream
City Manager
"Landlord"
Fiesta Marketplace Partners # 1
BY: Irving M. Chase
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~ EXHIBIT A
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EXHIBIT B
JANITORIAL SPECIFICATIONS
It is the intent of this Exhibit to provide general guidelines for minimum janitorial service. Any
absence of a specific janitorial service from this Exhibit does not relieve Landlord of the
obligation to provide such service, should it become necessary.
"Three-days-per-work-week, Monday through Friday" janitorial service for Tenant as required in
Section 11 (SERVICES AND UTILITIES) of the Lease Agreement, shall be inclusive of, but not
limited to, the services as detailed below:
OFFICE AREAS
MONDAY, WEDNESDAY, FRIDAY (CITY OF SANTA ANA HOLIDAYS EXCEPTED):
1. Empty and clean all waste receptacles, supply liners for waste receptacles, replace light
bulbs and fluorescent tubes, remove waste materials from the Premises, and wash
receptacles as necessary.
2. Mop all uncarpeted areas.
Vacuum all carpeted areas in offices, lobby, and corridors.
4. Hand-dust all office furniture, fixtures, and all other horizontal surfaces.
Remove all finger marks and smudges from doors, door frames, around light switches, and
from private entry glass and partitions.
6. Spot-clean carpet as necessary.
7. Clean sink and wipe down tables and counter areas in all break areas and coffee bars.
WEEKLY:
Wipe clean and polish all metal and bright work.
2. Mop and polish all resilient flooring. Use "wet floor" signs to indicate wet areas.
3. Dust in place all picture frames, charts, graphs, and similar wall hangings.
4. Spot-clean all wall marks.
5. Sweep balcony.
6. Clean finger prints/markings from interior windows.
7. Clean and maintain balcony drainage.
MONTHLY.•
1. Dust all miniblinds with the Premises.
2. Vacuum all HVAC vents, high moldings and other areas not reached by nightly or weekly
cleaning.
3. Scrub and wax uncarpeted floors.
4. Clean exterior windows.
SEMIANNUALLY:
1. Clean ceiling light diffusers.
2. Clean carpet in high-traffic areas (corridors, near lunchroom, etc.) and other areas as
needed.
3. Clean interior walls as needed.
4. Strip and wax uncarpeted floors.
ANNUALLY.•
Clean carpet throughout Premises.
RESTROOMS
MONDAY, WEDNESDAY, FRIDAY (CITY OF SANTA ANA HOLIDAYS EXCEPTED):
1. Clean and damp-mop floors.
2. Wash all mirrors, bright work and enameled surfaces.
3. Wash and sanitize all basins, bowls, urinals, and toilet seats.
4. Clean, and wash down all partitions, the walls, dispensers and receptacles.
5. Empty and sanitize all receptacles and sanitary napkins disposals.
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6. Provide materials and fill all toilet tissue, towel, seat cover, sanitary napkin and soap
dispensers.
MONTHLY.•
1. Machine-strip restroom floors and apply finish sealer where applicable.
2. Wash all partitions, the walls, and enamel surfaces.
Vacuum all louvers and vents, and dust light fixtures.
MSCELLANEOUS SERVICES
Maintain building lobby, corridors, stairwell to space, and other public areas in a clean
condition.