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HomeMy WebLinkAbout1996-065 ~,~ . 96~~.5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 15.06-051 02/26/96 RESOLUTION NO. 96-65 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF LEASE WITH OPTION TO PURCHASE, RELATING TO CERTAIN CITY-OWNED REAL PROP- ~:RTY SITUATED AT THE NORTHEAST CORNER OF WATElU1AN AVENUE AND GILBERT STREET (1505 NORTH WATElU1AN AVENUE). BE IT RESOLVED BY THE lfAYOR AND connON COUNC1L OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The nayor of the City of San Bernardino is hereby authorized and directed to execute on behalf of said City, a Lease with Option to Purchase relating to that certain City-owned real property located at the Northeast corner of Waterman Avenue and Gilbert Street, a copy of which is attached hereto, marked Exhibit "A" and incorporated herein by reference as fully as though set forth at length. SECTION 2. The authorization to execute the above-referenced agreement is rescinded if the parties to the agreement fail to execute it within sixty (60) days of the passage of this resolution. / 1 1 1 1 1 1 1 1 / 1 1 1 / 1 / / / 1 / / 1 1 1 / 1 -1- RES 96-65 , , LEASE WITH OPT,ION TO PURCHASE - AYALA FA1lILY -, 1505 .NORTH WATER1IAN AVENUE 1 I HEREBY CERTIFY that the foregoing resolution was duly adopted by 2 the nayor and Common Council of the City of San Bernardino at a 3 regular meeting thereof held on the l8th day of March 4 1996, by the following vote, to-wit: 02/26/96 5 6 7 8 9 10 11 12 13 14 15 16 17 18 The 19 of March 20 21 22 23 24 25 26 27 28 foregoing resolution is hereby approved this ~~ day 1996. f~~4J~ T6n nINOR, nayor ' City of San Bernardino Approved as to form and legal content: JAnES F. PENnAN, City A~torney !I By: ~> 7- o /1 (e~ -2- IUI:i !Ifo-6:) 15.06-51 ' ilafMI/96hv 1 2 LEASE VIm OPTIOlf TO .rWMIASE of this ;ulL This LMse with Option to PurclIase (Agr_nt) is -.de as 3 day of ~ , 1996, by and between the CITY OF SAN BER!lJUU)INO, 4 a lIunicipal corporation, hereinafter referred to as "Lessor", and SALVADOR 5 AYALA, SALVADOR AYALA, JR., ID\RIA C. AYALA, ID\RIA E. AYALA, FRANK HALSTEAD, 6 ~ o. LOPEZ and CARLOS E. LOPEZ, hereinafter referred to as "Lessee". 7 Recitals 8 This Agreelllent is lIIllde and entered into with respect to the fOllowing 9 facts : 10 lInuuS. Lessor is the owner of the property and structure (Proises) 11 I!ttrein l~~ed at 1505 Korth Water'En Avenu~;ua.nd 12 lIl11S1WlS, said PreII1ses are not now needed for lIunicipal use and are not 13 considered for lI1lI1icipal use during the tena hereof; and 14 ""~N~.~, Lessee desires the use of said Prellises, 15 NOW, THEREFORE, in consideration of the rental hereafter reserved and 16 agreed to be paid to Lessor by Lessee and the lIutual promises, obligations. 17 agreements and covenants hereinafter set forth and the faithful performance 18 thereof, the parties hereby mutually agree as follows: 19 20 21 22 23 24 25 26 27 28 1. Property Leased. Lessor hereby leases to Lessee, and Lesaee hereby leases froll Lessor, those certain Prelll1ses located at 1505 North Watel'lla.Il Avenue, in the City of San Bernardino, County of San Bernardino, State of California. Said Premises are outlined in red in attached Exhibit "A" and more particularly described as followis: The South 100 feet of the West 150 feet of Lot 3, Block 40, Rancho San Bernardiuo, as per plat thereof recorded in Book 7 of !laps, Page 2, records of the County Recorder of said County, EXCEPTING therefrOll that portion de- scribed in document recorded September 18, 1970 in Book 7519, Page 252, Official Records of said County, and dOCUMnt recorded !lay 28, 1971 in Book 7677, Page 383, Official Records of saiclCounty. '-1- EXHIBIT "A" .....-... 15.06-51 a3/06/96rev LEllSE WITH OPTION TO PURCHASE: 1505 NORTH IlATERlDlN AVENUE ,- AYALA 1 2 2. Term. This Agreement shall be for a term of two (2) years, beginning lIarch 18, 3 1996, and ending lIarch 17, 1998, providing that Lessee has the right and 4 option to purchase said Premises at anytime within said two (2) year lease 5 6 7 8 9 10 tenn at a sales price of One Hundred Twenty Thousand Dollars ($120,000). 3. Extension of Lease Tenn. If at the end of the initial two (2) year lease term, the Lessee has not exercised its option to purchase the Premises as stated in Paragraph No. 2 above, then Lessee shall have the option to renew the Lease portion of the Agreement for two (2) five (5) year terms by written notification to Lessor 11 _no later than ninety (90) days prior to expiration of the original--Agreelllellt 12 or any extension of the Agreement, subject to acceptance by Lessor. The 13 monthly rental shall be One Thousand Six Hundred Dollars ($1,600.00) for the 14 first five (5) year extension, and One Thousand Seven Hundred Dollars 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ($1,700.00) for the second five (5) year term extension. All other tenns and conditions shall remain the same. 4. Lease Payments/Option to Purchase. Lessee agrees to pay, and Lessor agrees to accept as lease payments for said Premises, a monthly rental of One Thousand Five Hundred Dollars ($1,500.00). Said total monthly rental is to be paid on or before the first day of each month, made payable to the Lessor, and sent to: City of San Bernardino Real Property Section 300 lforth "D" Street, 3rd Floor San Bernardino, CA 92418. The Lease payments of One Thousand Five Hundred Dollars ($1,500) per month shall not commence until the first (1st) day of the fifth (5th) month follow- ing the commencement of the Agreement or August 1, 1996. Each month, Five Hundred Dollars ly lease payment of One Thousand 'lllfl/3 ~~lf- ~--7U'""':U.::J 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 <J:1 28 15.06-51 D3/06/96rev LEASE VITH OPTION TO PURCHASE: 1505 NORTH VJl.TEIUmN AVENUE.- ADLA Five Hundred Dollars ($1500.00) shall be set aside to be credited towards the down pa}'llent for the purchase of said Premises. Said Five Hundred Dollars ($500.00) credit shall extend to the end of the two (2) year Option to Pur- chase the Premises, with a total credit of Ten Thousand Five Hundred Dollars ($10,500) accruing towards the purchase of said Premises. In the event Lessee does not exercise said Option to Purchase the Premises within the two year option period, the Ten Thousand Five Hundred Dollars ($10,500) shall be considered a portion of the Lease payments and shall not accrue to the bene- fit of the Lessee. In the event Lessee does exercise the Option to Purchase, the Five Thousand Dollar ($5,000) deposit made at the co_encement of the Lease shall also be credited to the pUrchase of the Premises _lllllong as _.all lease payments are current and the Lessee is in good standing with the Lessor. If the Lessee does not exercise said Option to Purchase, the Five Thousand Dollar ($5,000) shall be considered a security deposit for the Lease and shall not be refunded, but may be used by Lessee for regular lease pay- ments at the end of the two (2) year option term. 5. Late Payments: In the event the monthly rental is paid later than the fifth day of any month, a late payment penalty of One Hundred Dollars ($100) shall be as- sessed. .6. Use of Premises. The Premises are leased to the Lessee for use as an insurance office, beauty salonjbeauty supplies, and/or educational training facility, and related uses. Lessee agrees not to use the Premises, nor to permit their use or the use of any part of them, for any other purpose, without the prior written consent of the Lessor. 7. Improvements. Lessee shall .:;a~ ",. ""--,;':'.~' -.' not~, ~.~. l made, any alterations to the / ~"",:'-_'I,:,,, 'i.": '~(Q. A- 15.06-51 02/26/96rev LEASE WITH OPTION TO PURCHASE: 1505 NORTH WATERlIAN AVENUE, - AYALA 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 leased Premises, or any part thereof, without the prior written consent of Lessor. Any and all alterations and/or improvements made to the demised Premises pursuant to this section shall, upon termination of this Agreement, remain as a part of the Premises and at no cost or obligation to the Lessor. As a matter of this Lease, Lessee shall be permitted to make any and all repairs and improvements, major or minor, to the Premises to make them hab- itable. Lessee will commence with said repairs no later than ~ch 31, 1996. Lessee will provide Real Property Staff an accurate accounting of all the above repair expenses. These repairs and improvements may include, but are not limited to, the repair or replacement of the roof of the building, the interior ceiling and lighting, any flooring, painting of. the_. .:interior and exterior of the building, any necessary electrical, plumbing ana heating and air conditioning repair, addition of a security system, repair or replacement of the existing signage, and any tenant improvements the Lessee requires to begin operation. The repairs to the roof, ceiling and flooring shall be completed within ninety (90) days of the commencement of this Agreement and all repairs and improvements shall be done in accordance with applicable current City and state code requirements under the supervision of the Facili- ties nanager of the Lessor. Prior to the Lessee's occupation of the Premis- es, Lessor shall remove, or have removed, all remaining equipment, trash, broken glass, fallen ceiling panels, etc., in the interior of the building. The exterior landscaping shall be trimmed and cleaned or removed as needed. The roof shall be swept and all foreign materials removed from gutters, etc. B. naintenance and Operation. Lessee is familiar with the leased Premises and has knowledge of the present conditions that exist thereon. Lessee shall, at .Lessee's own cost and expense, keep and maintain all improvements thereon in geed condi- tion' and repair, both as to the exterior and interior portions thereof. -4- .am ,11-0> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 15.06-51 J2/26/96"v LEASE \lITH OPTION TO PURCHASE: 1505 NORTH WATERrlAN A\tENUE - AYALA Lessee shall provide or cause to be provided, all services which are required for the proper care and use of the Premises. Lessee shall use all reasonable precaution to prevent waste, damage or injury to the Premises, Lessor, shall at any reasonable time, have the right to enter the Premises and inspect a~d examine the same relative to such maintenance and upkeep. The Lessee shall keep the leased Premises and any and all improvements thereon free and clear of all liens, charges, and encumbrances, 9. utilities. Lessee shall pay for all electricity, gas, water, refuse service, tele- phone service, and all other services and utilities, including service in- s:tallation fees and charges for such utilities which are nOli or may.hereafter be provided to the leased Premises as to any charges or fees accruing during the term of this Agreement. If Lessee desires additional utilities and/or utility services to the Premises. Lessee must first obtain written consent from Lessor. 10. Ownership. Lessee acknowledges Lessor's title, paramount interest and ownership of the subject Premises, and Lessee agrees never to claim, challenge, or con- test said title, ownership or interest of Lessor. 11. Taxes!possessory Interest. Lessee covenants during the term of this Agreement to pay, when due, all taxes and assessments that may be assessed or imposed upon the Lessee's possessory interest in and to the Premises and upon personal property located on the leased Premises. During Lessee's possession and use of the leased Premises, should any taxes thereon be assessed against Lessor, Lessee agrees to indemnify Lessor thereon. 12. Amendment, This Agreement may be amended or modified only by written agreement -5- n!!: ~.. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 .,.. :5.06-51 ( 12/26/96rev .. LEASE WITH OPTION TO PURCHASE: 1505 NORTH llATERmIN AVENUE, - AYALA signed by both parties. 13. Insurance. (a) Fire. Lessee agrees to procure and maintain in force during the term of this Agreement and any extension thereof, at its expense, a policy or policies of insurance whereby the CITY OF SAN BERNARDINO will be named as the primary insured against loss or damage to the leased Premises, appurtenances and permanent equipment therein, resulting from fire, windstorm and extended perils, in a minimum amount of Two Hundred Thousand Dollars ($200,000). Damage from lightning, vandalism, malicious mischief and such perils ordinar- ily defined as "extended coverage" shall be included in such coverage. The insurance policy shall be. issued in the names of Lessor and LesseeL _ The . insurance policy shall provide that any proceeds shall be made payable solely to the Lessor, or, alternatively, to Lessor and Lessee, as their interests may appear. (b) Liability. Lessee agrees to procure and maintain in force during the term of this Agreement and any extension thereof. at Lessee's expense, public liability insurance in companies approved by Lesser through its Risk ftanager, adequate to protect against liability for damage claims through the Lessee's use of or arising out of the use of the leased Premises, in a mini- mum amount of ONE nILLION DOLLARS ($1,000,000.00) combined single limit. Lessee shall provide to Lessor's Risk nanagement Division, an annual policy of insurance which includes: 1. The City of San Bernardino as an additional named insured; 2. The insurance company name, policy number, period of coverage and the amount of insurance; 3. That the Real Property Section of the City of San Bernardino must be given notice, in writing, at least thirty (30) days prior to cancella- tion. material change or refusal to renew policy; and -6- .. 1>"" 0: .5.06'7S1 '2/2ri~r.ev LEASE WITH OPTION TO PURCHASE: 1505 NORTH llATERm\N A1/ENUR - AYALA 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 4. Condition that Lessee's insurance will be primary to any cover- age that Lessor may have in effect. Lessee agrees that, if such insurance policies are not kept in force during the term of this Agreement, and any extension thereof, Lessor may have the option of one of the following: (a) Procure the necessary insurance, pay the premium therefor, and that such premium shall be repaid to Lessor as an additional rent installment for the month following the date on which such premium is paid. (b) Immediately declare this Agreement in default, and terminate this Agreement forthwith. 14. DaJnaqe by Fire, Earthquake' or Calamity. If by earthquake, flood or other similar calamity or act of God, or if by fire, act of war or other similar cause, any existing improvements, or any improvements constructed by Lessee on the leased Premises are destroyed or damaged to a substantial degree, Lessee shall repair them when such repairs can be made in conformity with any applicable law, and if, within ninety (90) days after the date when such destruct:on or damage occurs, Lessee has not commenced repair or reconstruction, the Lessor may terminate this Agreement upon forty-five (45) days' written notice to Lessee. If so terminated, then Lessee shall, at its own expense, and upon election by Lessor, forthwith remove any or all of the damaged improvements. 15. Indemnification. Lessee shall exercise its privileges under this Agreement at its own risk. Lessee shall indemnify and hold harmless Lessor, its elective and appointive boards, commissions, officers, agents and employees from liability resulting from, arising out of, or in any way connected with, the Lessee's operations under this Agreement or Lessee's occupation of the Prem- ises, including claims resulting from the conduct of Lessee, its emplpyees, -7- ...-- --,---- 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ~5.()6-51 J2/26/96rev LEll.SE !lITH OPTION TO PURCHlISE: 1505 NORTH llATERrrnN AVENUE. - AYALA 1 2 invitees, guests or agents of Lessee, or Lessee's failure to perform its promises in connection herewith. Lessee shall defend Lessor, its elective 3 and appointive boards, commissions, officers, agents, and employees from any 4 suits or actions at law or in equity for damages caused, or alleged to have 5 been caused, by reason of any of Lessee's operations under this Agreement. Lessor shall not be liable to Lessee if Lessee's occupation or use af the Premises is hindered or disturbed. 16. Notices. All' .notices, herein required 'shall be .in writing and delivered in .~ ,. . person or sent by certified mail, postage prepaid, addressed as follows: LESSOR: LESSEE: CITY OF SAN BERNARDINO Real Property Section 300 North "D" street, 3rd Floor San Bernardino, CA 92418 (909) 384-5328 ROSEllEllD INSURANCE AGENCY c/o Salvador Ayala, Jr. 1505 N. !laterman Avenue San Bernardino, CA 92404 (909) 17. Condition of Property Upon Surrender. In the event the Option to Purahase the Premises is not exercised and the Lease is terminated, Lessee agrees to surrender the said Premises occu- pied under the Agreement herein granted, in as good condition as same was on the date of completion of all repairs and improvements to the Premises as set forth .in Paragraph 7 above. Lessor may elect to tak8' possession of and appropriate to itself without payment any property of Lessee, or anyone claiming under Lessee, which Lessee fails to remove after notice. 18. Severability. In the event this Agreement, or any portion thereof, should be deter- mined to be void, illegal or improper, for any reason whatever, all other portions of the Agreement shall remain fully enforceable to the extent possible after such determinations. 19. Default. -8- c.~~,;--,. - ---'---'---'-".----'-',----. .us~ 1 2 3 4 5 6 7 8 9 10 ll. 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 l5 .06-51.~~fIc J2/26/96nV,:':C;; LEASE llITH OPTION TO PURCHASE: 1505 NORTH WATERmIN AllENUE - AYALA In the event Lessee shall be in default in the payment of rentals, , taxes, or other charges hereunder, or shall otherwise breach its covenants or obligations hereunder, and shall be and remain in default for a period of ten (10) days after written notice from Lessor to it of such default, Lessor shall have the right and privilege of terminating this Agreement and declaring the same at an end, and of entering upon and taking possession of said Premises, and shall have the remedies now or hereafter provided by law for recovery of rent and/or taxes, repossession of the Premises and damages occasioned by. such default. If such default should occur, then Lessor shall have the right to take possession of and appropriate to itself without pay_ ment__t!1e~efor, any property of Lessee or anyone claiming:.under- Mil" .-then remaining on said Premises. 20. Effect of Lessor's llaiver. Lessor's waiver of breach of one term, covenant, or condition of this Agreement is not a waiver of breach of others, nor of subsequent breach of the one waived. Lessor's acceptance of rent installments after breach is not a waiver of the breach, except of breach of the covenant to pay the rent installment or installments accepted. 21. Duty to ~ake Alterations, Additions, or Changes Required by Law. If, during the term of this Agreement. any law, regulation, or rule requires that an alteration. addition, or other change be made to the leased Premises. the parties agree as follows: (a) If the alterations. additions, or changes are required as a result of Lessee's use of the Premises, Lessee will make them and bear all expense connected therewith. (b) If the alterations. additions. or changes are required as a result of the condition or nature of the Premises after the completion of the re- pairs and tenant improvements constructed under this Agreement, and not -9- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 l5.OQ:-51' J2/26m,rey LEASE IIITH OPTION TO PURCHASE: 1505 NORTH WATERllAN AVENUE - AYALA caused by use of the Premises by Lessee, Lessor will make them and bear all expense connected therewith. 22. Inspections. Lessor, its agents, officers, or employees may enter upon the leased Premises at such reasonable times during Lessor's normal business hours as it deems necessary for the purpose of inspection of the Premises to determine whether the terms and conditions of this Agreement are being performed and kept by Lessee. 23. , Non-Discrimination. The Lessee hereby covenants by and for itself, its heirs, executors, ad- minist.z:ators, employees, agents, and assigns, and all persons cl"i..ing _. under or through it, that there shall be no discrimination against or segregation of any person or group of persons, on account of race, color, religion, sex, national origin, ancestry, age, or handicap, in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the Premises herein leased, nor shall the Lessor itself, or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occu- pancy of lessees, sublessees, tenants, subtenants, agents, employees, as- signs, or vendees in the Premises herein leased. 24. Assiqnments: Sole Occupancy. Lessee shall not assign this Agreement or sublet the leased Premises or any part thereof without obtaining the prior written consent of the Lessor. The parties contemplate that Lessee shall be the sole occupant of these Premises, and the rental rate is established based in part thereon. Any change in occupancy constitutes a material breach of this Agreement. 25. Agreement Breached bv Lessee's Receivership, Assiqmnent for Bene- fit of Creditors, Insolvency, or Bankruptcy. -10- as !Jfa-65 ; !~.'" LEASE WITH OPTION TO PURCHASE: 1505 NORTH WATER1Il\N AVENUE - AYALA 1 Appointment of a receiver to take possession of Lessee's assets, Less- 2 ee's general assignment for benefit of creditors, or Lessee's insolvency or 3 taking or suffering action under the Bankruptcy Act is a breach of this 4 Agreement and shall terminate same. 5 26. Agreement Applicable to Successors, Etc. 6 This Agreement and the terms, covenants and conditions hereof apply to, 7 and are binding on the heirs, successors, executors, administrators and 8 assigns of the parties hereto. 9 27. Entire Agreement. 10 This document represents the entire, total, and complete Agreement and 11 :.c~ other,~itten and/or oral agreements ~~~t.inthis_r~egard. 12 If 13 I I 14 If 15 II 16 I I 17 I I 18 I I 19 II 20 IJ 21 II 22 II 23 / I 24 I / 25 I I 26 / I 27 II :.S.~__51 J2(J>!>/96rev.. , -11- LEASE WITH OPTION TO PURCHASE: 1505 NORTH WATElUDUl AVENUE - AYALA 1 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on 2 the date first above written. 3 10 ull 12 13 14 15 16 17 18 4 5 6 7 8 9 DATED: -/J{ aJ- ,d-& d11. h , ATTEST: N" . . _:_'~ ~,: D~';;: ~ ~, 1116 DATED: r-7-,r;?~-q ~ ~~at,. 19 'i;;--l2~ c9:, Ox- Q:J 20 (j 21 22 23 24 25 26 27 28 l;,_:,_..:,"_'_ 15.06:"51 "o;~ ,,_' ",' i.',". 02/2,fJ/96rev"," ',--- ~<~ .,' -~i::m.':';::~"'~' Approved as to form and legal content: JAl:lES F. PENIfAN , City Attorney J. LESSOR: CITY OF SAN BERNARDINO ~' y: ~ T n nlOOR, lfayor - . I. . , f' .1 ") ,'.' , I ,,\ ! ;j' ,- " ) /' J !. ,"\;/}J )./ By'~~~' . RA CLARK, City ,CJ k ., ) . , ) ,", I ,'.-' LESSEE: ROSEltEllD INSURANCE AGENCY lmRIA C. HALSTEAD tS CARLOS E. LOPEZ -12- r I .....a.,." I w ::) z w ~ I , 44 o I'l .- EVANS o f') . . . ' , f>c0 ~'f..' o"l.. ~ ~o ~ :J ~o"'- \,..0 '?>~~~~ ~~~'o ~ 11'Z- . , ~v~ ~,?>' ~ , . -STREET- '; 1 \ . t i I I I , . . I t , I t t RES9,6-65 1/.5 ,.----r.- . . .;' 6 ,.--: !.fh_ . 4-.5 ~ -. _,-:':,:, .h ,. 3.$. ..I-~'. -,,:. -: ... .-. --.- . .,~ -1- ~1t. ., ~ ~j ,.s~~--.:.~.__ ., '~1' 1'~]'_~:'.::z.;C{ - -- :-.~'.l . . --.-.._.~- 6 J,s. f4 10 9 4- 6 32 , '~ IX. )~ ..--.-.---------...-- --- 2 5 ~ <-f. 10 c; J 2y.. 3 1/ 10 AREA CALcULATIONS :1'+ I I 16' 24' 384 . x = / 2' x 10' = 20 3.5' x 42' = l47 I 11.5 x 48' = 552 4.5 x 44.5' 200 6.5 x 46.5 ' 302 24' x 43' = 1,032 6 ' x 46.5' 279 6 ' x 18' = 108 j 4' x 9' X 2 = 72 Total S.F. 3,096 16 Say 3,100 ....~ca.-.""'~1'"