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HomeMy WebLinkAboutLAN LE TRUSTEE - 2016RENTAL AGREEMENT (Loss of Rents) N-2016-165 .,r Linz This AGREEMENT is made and entered into this day of Linz , 2016 by and between the property owner 2115 Bristol Trust (Lan Le Trustee), ("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 escrow for City's acquisition from Owner of 2115-2123 S. Bristol Street (015-194-20,21,22) in the City, which is legally described in > xhibjt A, attached hereto and incorporated herein ("Subject Propctty3'). WHEREAS, the Subject Property Includes a lot of real property commonly known as 2123 S. Bristol Street ("Subject Premises") that is operated by the tenant known as Botanica Sol ("Tenant'). WHEREAS, Owner and City desire to agree that, since Tenant was relocated by the City on September 30, 2016, and prior to close of escrow„ Owner will not re -rent the Subject Premises , City will make a monthly payment to Owner to compensate Owner for Owner's loss of rents, in the amount of $2,200 per the former lease agreement between the Owner and the'1'enant. 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 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") 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 or escrow 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 the sum of $2,200 for each month, on a pro -rated basis if necessary, for the period beginning October I, 2016 through close of escrow on the Subject Property. The payment provided to Owner pursuant to this agreement is intended to compensate Owner for the Owner's lost rents from Tenant beginning on October 1, 2016 stated in Section 1 above and ending on the close of escrow.. 2. In consideration for the payments to be made under this Agreement, Owner will hold the Subject Premises vacant and not re -rent or allow any occupancy of the Subject Premises. 3. Should Owner, in violation of Section 3 herein, re -rent or allow any occupancy of Subject Premises , City shall not be liable or responsible for any lost rents with respect to the Subject Premises, 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 Premises . 4. The City shall not call on Owner to make any special improvements to the Subject Premises , 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. 5. Owner reserves the right to enter onto and inspect the Subject Premises , and to make any necessary repairs to the Subject Premises , in accordance with tenant's lease, as applicable. 6. Any payment payable hereunder for any period of time less than one (t) 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. 7. 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: 2115 Bristol Trust, Lan Le Trustee 18060 S 3rd Street Fountain Valley CA 92708 cc: Barry Ross 2 Venture Suite 450 Irvine CA 92618 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. 8. 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. 9. 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. 10. 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 paries hereto as of the date First above written. N-2016-165 OWNER CITY 2115 Bristol Trust CITY OF SANTA ANA, a charter city and municipal corporation duly organized under the By: o titution and laws of the State of California It r By: Its: Dav'd Cavazos, City Manager ATTESTc Maria D. Huizar, Ci Clerk Approved as to Form: Sonia Carvalho CityAttorneys d n /VV e T J M. Funk, Assistant City Attorney Re com ended for Approval: Fred Mousavipour Executive Director of Public Works Agency EXHIBIT "A" LEGAL DESRIPTION Real property In the City of Santa Ana, County of Orange, State of California, described as follows: PARCEL i AS SHOWN ON EXHIBIT A ATTACHED TO LOT LINE ADJUSTMENT N0. 2002.09 RECORDED JANUARY 30, 2003 AS INSTRUMENT NO. 03.113806 OF OFFICIAL RECORDS OF ORANGE COUNTY, CALIFORNIA. APN: 015.194-20 and 015.194.21 and 015-194.22