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HomeMy WebLinkAboutAgenda Item No. 10 CITY OF LAKE LSINOR,E ♦ 1 DREAM EXTREME REPORT TO CITY COUNCIL TO: HONORABLE MAYOR AND COUNCILMEMBERS FROM: ROBERT A. BRADY, CITY MANAGER DATE: DECEMBER 13, 2011 SUBJECT: LEASE AGREEMENT FOR BUILDING AT 108 LIBRARY AVENUE Background The City owns a 254 square foot building located at 108 Library Avenue, just off Main Street. The City signed an agreement with Pedro Vasquez in 1992 for rental of this building at $127.50 ($0.50 /SF) per month. However, the current tenant is Mr. Vasquez's daughter, Gloria Jimenez. She is also the owner of El Unico Restaurant located in City Park. City Staff desires to terminate the old agreement with Mr. Vasquez and to enter into a new lease agreement with Gloria Jimenez. Discussion The new Lease Agreement is a month -to -month rental that would become effective on January 1, 2012. The monthly rental rate is $165 ($0.65/SF). A security deposit equal to the one month's rent will be held by the City. A late fee of $10 per day shall be charged to the tenant if the rent is not received by the City in three business days after the due date. Fiscal Impact The City will receive annual revenue from the Lease Agreement in the amount of $1,980. Recommendation Approve the Lease Agreement, subject to minor modifications as approved by the City Attorney and authorize the City Manager to execute the document. Approved by: Pat Kilroy, Director _--� Lake, Parks & Recreation Department 1 Approved by: Robert A. Brady, City Manager Attachment: Lease Agreement for Building at 108 Library Street AGENDA ITEM NO. 10 Page 1 of 10 Page 2 of 10 LEASE AGREEMENT (108 Library Avenue) THIS LEASE AGREEMENT (this "Lease "), is made as of January 1, 2012 ( "Effective Date ") by and between the City of Lake Elsinore, a municipal corporation ( "Landlord ") and Gloria Jimenez ( "Tenant "). Tenant and Landlord are hereinafter sometimes referred to individually as "Party" and collectively as the "Parties." RECITALS A. Landlord is the owner of certain real property and improvements commonly known and numbered as 108 Library Avenue, Lake Elsinore, California (the "Leased Premises "). B. The Leased Premises consists of approximately 254 square feet of rentable space and appurtenant parking and improvements. C. Tenant desires to lease the Leased Premises from Landlord for purposes of storage and small meetings of youth oriented organizations and Landlord desires to lease the Leased Premises to Tenant for such purposes in accordance with the terms and conditions set forth in this Lease. NOW, THEREFORE, in consideration of the foregoing and of the mutual promises and covenants hereinafter set forth, it is hereby agreed by and between the Parties that: 1. Term. Landlord hereby leases the Leased Premises to Tenant, and Tenant hereby leases the same from Landlord, on a month to month basis ( "Term ") beginning January 1, 2012 ( "Commencement Date "). Such month -to -month tenancy may be terminate by either Party giving written notice to the other Party at least thirty (30) days prior to the intended termination date subject to applicable laws. 2. Reserved. 3. Rent. A. Tenant shall pay monthly rent to Landlord in the amount of $0.65 per rentable square foot, or $165 per month ( "Rent "). B. The first month's Rent shall be shall be due on or before the Commencement Date. Thereafter each Rent payment shall be due in advance on the first day of each calendar month during the Term and shall be delinquent on the tenth. Page 3 of 10 C. If any installment of Rent due from Tenant is not received by Landlord within three business days of the due date, Tenant shall pay Landlord a Ten Dollar ($10) late fee for each and every day thereafter. D. Rent payments shall be made to Landlord at City Hall, 130 S. Main Street, Lake Elsinore 92530 or at such other place designated by written notice from Landlord. E. In the event that a check for Rent is returned to the City due to insufficient funds, Tenant shall also pay Landlord a Twenty -Five Dollar ($25) fee. 4. Security Deposit. Tenant agrees to pay Landlord a "Security Deposit" in the amount of One Hundred Sixty —Five Dollars ($165) due and payable on or before the Commencement Date. The Security Deposit shall be held by Landlord without liability for interest and as security for the performance by Tenant of Tenant's covenants and obligations under this Lease, it being expressly understood that the Security Deposit shall not be considered an advance payment of rental or a measure of Landlord's damages in case of default by Tenant. Landlord may, from time to time, without prejudice to any other remedy, use the Security Deposit to the extent necessary to make good any arrearages of rent or to satisfy any other covenant or obligation of Tenant hereunder. Following any such application of the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to restore the Security Deposit to its original amount. If Tenant is not in default at the termination of this Lease, the balance of the Security Deposit remaining after any such application shall be returned by Landlord to Tenant. If Landlord transfers its interest in the Premises during the term of this Lease, Landlord may assign the Security Deposit to the transferee and thereafter shall have no further liability for the return of such Security Deposit. 5. Use The Leased Premises shall be used by Tenant as provided in Recital C. Under no circumstances shall Tenant allow any person to use the Leased Premises for overnight habitation. 6. Sublease and Assignment. Tenant shall not sublease all or any part of the Leased Premises, or assign this Lease in whole or in part without Landlord's consent, such consent shall be subject to Landlord's sole and absolute discretion. Lease Agreement 108 Library 120211 2 Page 4 of 10 7. Repairs and Maintenance. A. During the Term, Landlord shall maintain the roof, foundation, exterior walls and the major building systems, including heating, air conditioning, electrical, plumbing and water systems. B. Notwithstanding the foregoing, during the Term, Tenant shall be responsible, at Tenant's expense, for: (1) maintaining the Leased Premises in clean and sanitary condition at all times. (2) non -major repairs (less than $1000.00) necessary to maintain and repair non -major systems and interior improvements, and (3) all damages caused by Tenant or Tenant's invitees. Upon the termination of the Term, Tenant shall surrender the Leased Premises in as good a condition as at the Commencement Date, ordinary wear excepted. 8. Alterations and Improvements. Except as may be consent to by Landlord, and at Tenant's sole cost and expense, Tenant shall not remodel, redecorate, and make additions, improvements and replacements of and to all or any part of the Leased Premises. In the event that Landlord does consent to such alterations, Tenant shall assure that the same are made in a workmanlike manner and utilizing good quality materials and such alterations shall not be removed but rather will become the property of Landlord for the expiration of the Term. 9. Insurance. A. Landlord shall maintain fire and extended coverage insurance on the Leased Premises in such amounts as Landlord shall deem appropriate. Tenant shall be responsible, at its expense, for fire and extended coverage insurance on all of its personal property, including removable trade fixtures, located in the Leased Premises. B. Tenant and Landlord shall, each at its own expense, maintain a policy or policies of comprehensive general liability insurance with respect to the respective activities of each on the Leased Premises with the premiums thereon fully paid on or before due date, issued by and binding upon some insurance company approved by Landlord, such insurance to afford minimum protection of not less than $1,000,000 combined single limit coverage of bodily injury, property damage or combination thereof. Landlord shall not be required to maintain insurance against thefts within the Leased Premises. 10. Utilities. Tenant shall pay all charges for water, sewer, gas, electricity, telephone, trash and other services and utilities used by Tenant on the Leased Premises during the Term unless otherwise expressly agreed in writing by Landlord. In the event that any utility or service provided to the Leased Premises is not separately metered, Landlord shall pay the amount due and separately invoice Tenant for Lease Agreement 108 Library 120211 3 Page 5 of 10 Tenant's pro rata share of the charges. Tenant shall pay such amounts within fifteen (15) days of invoice. 11. Signs. Following Landlord's consent, Tenant shall have the right to place on the Leased Premises, at locations selected by Tenant, any signs which are permitted by applicable zoning ordinances. Landlord may refuse consent to any proposed signage that is in Landlord's opinion too large, deceptive, unattractive or otherwise inconsistent with or inappropriate to the Leased Premises. Tenant shall repair all damage to the Leased Premises resulting from the removal of signs installed by Tenant. 12. Entry. Landlord shall have the right to enter upon the Leased Premises at reasonable hours to inspect the same, provided Landlord shall not thereby unreasonably interfere with Tenant's business on the Leased Premises. 13. Parking and Keys. A. During the Term, Tenant shall not have any exclusive parking privileges with respect to the Leased Property but shall have the non - exclusive use of the public automobile parking areas in or around the Leased Premises. B. Upon the Landlord's receipt the first payment of Rent, Landlord shall provide Tenant with two (2) sets of keys to the Lease Premises. Tenant covenants and agrees that Tenant shall not change the locks on the entry doors and /or mailbox without the written consent of Landlord. In the event that Landlord does consent, the Tenant shall provide Landlord with a duplicate key(s) and all cost and expense relating to the change of locks shall be borne by Tenant. 14. Damage and Destruction. If the Leased Premises or any part thereof or any appurtenance thereto is so damaged by fire, casualty or structural defects that the same cannot be used for Tenant's purposes, then Tenant shall have the right within ninety (90) days following damage to elect by notice to Landlord to terminate this Lease as of the date of such damage. Tenant shall be relieved from paying rent and other charges during any portion of the Term that the Leased Premises are inoperable or unfit for occupancy, or use, in whole, for Tenant's purposes. Tenant shall be relieved from paying rent and other charges during any portion of the Term that the Leased Premises are inoperable or unfit for occupancy, or use, in part, for Tenant's purposes for that portion of the Leased Premises that is inoperable or unfit. Rent and other charges paid in advance for any such periods shall be credited on the next ensuing payments, if any, but if no further payments are to be made, any such advance payments shall be refunded to Tenant. The provisions of this paragraph extend not only to the matters aforesaid, but also to Lease Agreement 108 Library 120211 4 Page 6 of 10 any occurrence which is beyond Tenant's reasonable control and which renders the Leased Premises, or any appurtenance thereto, inoperable or unfit for occupancy or use, in whole or in part, for Tenant's purposes. 15. Default. If default shall at any time be made by either Party, and if said default shall continue for three days (3) days after written notice thereof by the non - defaulting Party without correction thereof then having been commenced and thereafter diligently prosecuted, the non - defaulting Party may declare this Lease ended and terminated by giving written notice of such intention. The non - defaulting Party shall have, in addition to the remedy of termination, any other right or remedy available, either in law or equity, including the Tenant's right to cure a Landlord default deduct the cost thereof from the next accruing installment or installments of rent payable hereunder until Tenant shall have been fully reimbursed for such expenditures, together with interest thereon at a rate equal to the lesser of twelve percent (12 %) per annum or the then highest lawful rate. If this Lease terminates prior to Tenant's receiving full reimbursement, Landlord shall pay the unreimbursed balance plus accrued interest to Tenant on demand. The non - defaulting Party shall use reasonable efforts to mitigate its damages, provided, however, that if Tenant abandons or otherwise vacates the Leased Premises while in default of the payment of Rent, Landlord my consider any personal property left on the Leased Premises as abandoned and may dispose of such personal property in any manner allowed by law. 16. Quiet Possession. Landlord covenants and warrants that upon performance by Tenant of its obligations hereunder, Landlord will keep and maintain Tenant in exclusive, quiet, peaceable and undisturbed and uninterrupted possession of the Leased Premises during the Term. 17. Condemnation. If any legally, constituted authority condemns the Leased Premises which shall make the Leased Premises unsuitable for leasing, this Lease shall cease when the public authority takes possession, and Landlord and Tenant shall account for rental as of that date. Such termination shall be without prejudice to the rights of either party to recover compensation from the condemning authority for any Toss or damage caused by the condemnation. Neither party shall have any rights in or to any award made to the other by the condemning authority. Lease Agreement 108 Library 120211 5 Page 7 of 10 18. Notice. Any notice required or permitted under this Lease shall be deemed sufficiently given or served if sent by United States certified mail, return receipt requested, addressed as follows: If to Landlord to: City of Lake Elsinore 130 South Main Street Lake Elsinore, California 92530 Attn: City Manager If to Tenant to: Gloria Jimenez Lake Elsinore, California Landlord and Tenant shall each have the right from time to time to change the place notice is to be given under this paragraph by written notice thereof to the other party. 19. Brokers. Tenant represents that Tenant was not shown the Leased Premises by any real estate broker or agent and that Tenant has not otherwise engaged in, any activity which could form the basis for a claim for real estate commission, brokerage fee, finder's fee or other similar charge, in connection with this Lease. 20. Waiver. No waiver of any default of Landlord or Tenant hereunder shall be implied from any omission to take any action on account of such default if such default persists or is repeated, and no express waiver shall affect any default other than the default specified in the express waiver and that only for the time and to the extent therein stated. One or more waivers by Landlord or Tenant shall not be construed as a waiver of a subsequent breach of the same covenant, term or condition. 21. Memorandum of Lease. The Parties hereto contemplate that this Lease should not and shall not be filed for record, but in lieu thereof, at the request of either Party, Landlord and Tenant shall execute a Memorandum of Lease to be recorded for the purpose of giving record notice of the appropriate provisions of this Lease. Lease Agreement 108 Library 120211 6 Page 8 of 10 22. Headings. The headings used in this Lease are for convenience of the parties only and shall not be considered in interpreting the meaning of any provision of this Lease. 23. Successors. The provisions of this Lease shall extend to and be binding upon Landlord and Tenant and their respective legal representatives, successors and assigns. 24. Consent. Landlord shall not unreasonably withhold or delay its consent with respect to any matter for which Landlord's consent is required or desirable under this Lease. 25. Compliance with Law. Tenant shall comply with all laws, orders, ordinances and other public requirements now or hereafter pertaining to Tenant's use of the Leased Premises. Landlord shall comply with all laws, orders, ordinances and other public requirements now or hereafter affecting the Leased Premises. 26. Final Agreement. This Agreement terminates and supersedes all prior understandings or agreements whether verbal or written on the subject matter hereof, including but not limited to that certain City of Lake Elsinore California Agreement made and entered into on the 11th day of August, 1992 by and between the City of Lake Elsinore and Mr. Pedro Vasquez along with any amendments thereto. This Agreement may be modified only by a further writing that is duly executed by both Parties. 27. Governing Law. This Agreement shall be governed, construed and interpreted by, through and under the Laws of the State of California. [Signatures on Next Page] Lease Agreement 108 Library 120211 7 Page 9 of 10 IN WITNESS WHEREOF, the parties have executed this Lease as of the day and year first above written. TENANT: Dated: , 2011 Gloria Jimenez LANDLORD: CITY OF LAKE ELSINORE Dated: , 2011 By: Robert Brady, City Manager ATTEST By: Virginia Bloom, City Clerk APPROVED AS TO FORM Leibold McClendon & Mann, P.C. By: Barbara Zeid Leibold Lease Agreement 108 Library 120211 8 Page 10 of 10