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Home My WebLink AboutVICALE, LLC AND ALDA SOUTH, LLC (2)-2016°�N-2416-179 �, qQ 2 i 2018 RENTAL AGREEMENT Or. ,,._/„ . (Loss of Rents) This AGREEMENT, made and entered into this /stday of Nupernber , 2016 by and between the property owners VICALE LLC, and ALDA SOUTH, LLC (together as "Owner"), and the CITY OF SANTA ANA, a charter city and municipal corporation duly organized under the Constitution and laws of the State of California ("City"). WHEREAS, Owner and City are in negotiations for City's acquisition from Owner of certain real property located in the City, which is legally described in Exhibit A, attached hereto and incorporated herein ("Subject Property"), WHEREAS, the Subject Property consists of two lots of real property commonly known as 2240 S. Bristol Street (408-471-06). WHEREAS, 2240 S. Bristol Street is a commercial property operated by Conroy's Flowers. WHEREAS, Owner and City desire to agree that, in the event the tenant occupying the Subject Property vacates that property, Owner will not re -rent that property and City will make a monthly payment to Owner to compensate Owner for Owner's loss of rents, in the amount of $8,432 per the current lease agreement between the Owner and the tenant. WHEREAS, it is the desire of the City to minimize or avoid incurring costs, damages, obligations or liabilities 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 'C1.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 seg. of the Code of Regulations (collectively "Relocation Costs") as a result of City's acquisition of the Subject Property, or any portion thereof, and Owner desires not to lose rental income during the period of negotiations between Owner and City for City's acquisition of the Subject Property. NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, the City and the Owner agree as follows: I. The City will pay directly to Owner on the first of each month in the event the Subject Property becomes and remains vacant, the amount of $8,432. No "Lost rent" compensation will be payable to Owner unless and until the Subject Property becomes and remains vacant, Owner is not otherwise receiving rent from its tenant(s) or otherwise, and Owner complies with the notice provisions set forth herein. "Vacation Date" is the date upon which Conroys Flowers legally and physically vacates the Subject Property, and the Owner no longer receives compensation for rent for the Subject Property The payment provided to Owner pursuant to this agreement is intended to compensate Owner for the Owner's lost rents from 2240 S. Bristol Street beginning on the Vacation Date stated in Section I above and ending on the termination of this Agreement as stated in Section 9 below. 2. Owner will promptly notify the City, in writing, if the tenant occupying the Subject Property provides notice to Owner of such tenant's intent to terminate its rental agreement and/or vacate Subject Property and/or if such tenant actually vacates Subject Property. 3. In consideration for the payments to be made under this Agreement, Owner will hold the Subject Property vacant and not re -rent or allow any occupancy of the Subject Property. 4. Should Owner, in violation of Section 4 herein, re -rent or allow any occupancy of Subject Property, City shall not be liable or responsible for any lost rents with respect to the Subject Property, and Owner shall be liable to the City and shall indemnify the City and hold the City harmless for and against any and all costs, damages, liabilities and/or expenses, including attorneys' fees and expert witness fees, incurred by the City in enforcing the terms of this Agreement, including any and all Relocation Costs incurred by the City as a result of Owner's breach of this Agreement and/or City's obligation to relocate any tenants of the Subject Property. 5. The City shall not call on Owner to make any special improvements to the Subject Property, but Owner hereby specifically covenants and agrees to keep the property in good order and condition, in compliance with all applicable federal, state and local laws, including the City of Santa Ana Municipal Code, at Owner's cost and expense. 6. Owner reserves the right to enter onto and inspect the Subject Property, and to make any necessary repairs to the Subject Property, in accordance with tenant's lease, as applicable. 7. Any payment payable hereunder for any period of time less than one (1) month shall be determined by prorating the monthly rental rates set forth in Section 1, based on the actual number of days in the month. 8. All notices required herein, or which may otherwise be given by either party to the other, shall be deemed to have been fully given when made in writing and deposited in the United States mail, certified and postage prepaid, and addressed as follows: To the Owner at: VICALE LLC and ALDA SOUTH, LLC 6625 Zumirez Drive Malibu CA 90265 cc: Chris Peterson Peterson Law Group 19800 MacArthur Blvd. Irvine CA 92613 To the City at: City of Santa Ana 20 Civic Center Plaza Santa Ana, CA 92701 Attn: Jason Gabriel, Principal Civil Engineer Nothing shall preclude the giving of such written notice by personal service. 9. This Agreement shall terminate automatically on the earlier to occur of (a) the date the City acquires legal title to the Subject Property or (b) the date the City acquires legal possession to the Subject Property by means of a court order of pre -judgment possession in an eminent domain proceeding or (c) thirty (30) days following either party's written notice to the other party terminating this Agreement. 10. No amendments or modifications to the terms of this Agreement shall be valid unless made in writing and signed by the parties hereto, and no oral understanding or agreement not incorporated herein shall be binding on either of the parties hereto. 11. The terms and conditions of this agreement shall be binding upon the heirs, assigns; successors and personal representatives of the parties hereto. IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto as of the date first above written. RS CITY E LLC CITY OF SANTA ANA, a charter city By: rName: municipal corporation duly organized under the C titution and laws of the State of California OBERT ADLER t^ a vid Cavazos, City Manager AT�4T: ALDA SCIUTIi By: aria D. Iiuizar, City Clerk Approved as to Form: Name: ROBERT ADLER Its: 44 City Attorney Recommend dt ,SRkti@ Chief Assistant i Attorney 4oFred usavipour Executive Director of Public Works Agency EXHIBIT A LEGAL DESCRIPTION Real property in the City of Santa Ana, County of Orange, State of California, described as follows: THAT PORTION OF SECTION 23, TOWNSHIP 5 SOUTH, RANGE 10 WEST IN THE LAND ALLOTTED TO F.W. KOLL IN DECREE OF PARTITION OF THE RANCHO SANTIAGO DE SANTA ANA, RECORDED IN BOOK B OF JUDGEMENTS OF THE 17TH JUDICIAL DISTRICT COURT OF CALIFORNIA, IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT ON A LINE PARALLEL WITH AND NORTHERLY 52.00 FEET FROM THE SOUTH LINE OF SAID SECTION 23, AS SHOWN ON A MAP TRACT NO. 2207, RECORDED IN BOOK 62 PAGES 23 AND 24, OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, SOUTH 89° 48' 45" WEST 192.00 FEET THEREON FROM THE EAST LINE OF SAID SECTION AS SHOWN ON SAID MAP; THENCE NORTH 00 10'45" EAST 150.00 FEET PARALLEL WITH SAID EAST LINE; THENCE NORTH 890 48' 45" EAST 150.00 FEET PARALLEL WITH SAID SOUTH LINE TO A LINE PARALLEL WITH AND WESTERLY 42.00 FEET FROM SAID EAST LINE; THENCE SOUTH 00 10' 45" WEST 125.16 FEET ALONG SAID LAST MENTIONED PARALLEL LINE TO THE BEGINNING OF A TANGENT CURVE CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 25.00 FEET; THENCE SOUTHWESTERLY 39.11 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 890 38'00" TO THE POINT OF TANGENCY WITH SAID FIRST MENTIONED PARALLEL LINE; THENCE SOUTH 890 48' 45" WEST 125.16 FEET TO THE POINT OF BEGINNING. EXCEPT THEREFROM THE INTEREST RESERVED TO THE CITY OF SANTA ANA OF THE ADJOINING STREETS BY GRANT DEED RECORDED JUNE 13, 1980 AS INSTRUMENT NO. 13622 IN BOOK 13634, PAGE 170 OF OFFICIAL RECORDS. ALSO EXCEPT THEREFROM ALL OIL, GAS, WATER AND MINERAL RIGHTS WITHOUT, HOWEVER, THE RIGHT TO USE THE SURFACE OF SAID LAND OR ANY PORTION THEREOF TO A DEPTH OF 500 FEET BELOW THE SURFACE THEREOF FOR THE EXTRACTION OF SUCH OIL, GAS, WATER OR MINERALS, AS RESERVED TO THE CITY OF LOS ANGELES BY GRANT DEED RECORDED JUNE 13, 1980 AS INSTRUMENT NO. 13622 IN BOOK 13634, PAGE 170 OF OFFICIAL RECORDS. APN: 408-471-06 4