Loading...
HomeMy WebLinkAbout19-Parks & Recreation ARDINO — RE UEST FOR COUNCIL ACON CITY OF SAN BERN G1NAL Q From: Kevin Hawkins, Director Subject: Resolution of the Mayor and Common Council authorizing the City Dept: Parks, Recreation& Community Manager to execute a Commercial Lease Services Department between the City of San Bernardino and the Redevelopment Agency of the City of San Date: August 2, 2007 Bernardino for the lease of property known as 201A North "E" Street, Suite 103 and the east half of Suite 106 on behalf of the City of San Bernardino Parks and Recreation Department. M/CC Meeting Date: September 17, 2007 Synopsis of Previous Council Action: Recommended Motion: 1. Adopt Resolution, and 2. Authorize the Director of Finance to amend the FY 2007/08 Budget to increase revenues in account number 001-000-4520-0000 in the amount of$44,000, appro riate $30,000 to account number 001-381-5502—Contractual Services, and ap ropriat $ 4,000 to account number 001-381-5706—Alterations and Reno ations I Signature Contact person: Kevin Hawkins Phone: 384-5030 Supporting data attached: staff Report Reso &Commercial Lease Ward: 1 FUNDING REQUIREMENTS: Amount: $3,300 per month Lease payment Source: (Acct. No.) Account Number 001-381-5502 (Acct. Description) Finance: Council Council Notes: 2�7^ 2F 7 Agenda Item No. 1 /111w CITY OF SAN BERNARDINO — REQUEST FOR COUNCIL ACTION Staff Report Subject: Resolution of the Mayor and Common Council authorizing the City Manager to execute a Commercial Lease between the City of San Bernardino and the Redevelopment Agency of the City of San Bernardino for the lease of property known as 201A North "E" Street, Suite 103 and the east half of Suite 106 on behalf of the City of San Bernardino Parks and Recreation Department. Background: During the past 12 months, the Parks, Recreation and Community Services Department has attempted to identify creative opportunities in order to maximize existing recreational facilities, while at the same time, facilitating a move of the main offices (located at 547 North Sierra Way) to 201A North `B" Street, in closer proximity to other municipal departments. The current facility is one of the City's older buildings, and is becoming cost prohibitive to maintain. Further, it is not large enough to adequately accommodate the department staff, which has necessitated the move of some staff members to satellite Parks facilities. The move from the current location will also serve to expedite the redevelopment of the Seccombe Lake Park area. Included as Attachment"A" is a rendering of the proposed Seccombe Lake Park development. There are a number of benefits inherent in the move closer to City Hall. The relocation will greatly improve access to other city services and functions. In addition, the department interactions will be enhanced, further facilitating the integration of quality of life goals. In a significant step toward that end, the Department entered into an agreement with the San Bernardino City Unified School District on behalf of the Public Safety Academy (PSA) for use of portions of the Galaxy Building and Norton Recreation Center Gymnasium. The lease revenue from that Agreement was identified as the funding mechanism for the lease payment to the Economic Development Agency. The PSA Lease document was approved by Council on August 6, 2007; however, the accompanying budget amendment to appropriate $30,000 to Account Number 001-381-5502 (Contractual Services) and $14,000 to Account Number 001- 381-5706 (Alterations and Renovations) was inadvertently omitted, and therefore, not authorized at that meeting. The Department has coordinated with the Economic Development Agency regarding the planned Seccombe Lake development and the need to vacate the current offices to allow for demolition of the site, which includes the YWCA building and Parks and Recreation main offices. As a result of this agreement, the Department has identified October 1, 2007 as a target relocation date. October 1, 2007 is the effective date of the attached month-to-month Commercial Lease with EDA. Financial Impact: The lease payment at the 201 N. "E" Street location is $3,300 per month. The cost for the nine months remaining in FY 07/08 will be $30,000. The remaining $14,000 in anticipated lease revenue from the PSA Agreement is to be used toward tenant improvements associated with the move to the new Parks Administrative Office. Recommendation: 1. Adopt Resolution, and 2. Authorize the Director of Finance to amend the FY 2007/08 Budget to increase revenues in account number 001-000-4520-0000 in the amount of$44,000, appropriate $30,000 to account number 001-381-5502—Contractual Services, and appropriate $14,000 to account number 001-381-5706—Alterations and Renovations. Attachment A THE PARK Renaissance Park will be surrounded by green space. As previously noted, the site is immediately adjacent and contiguous to two significant public park areas, Seccombe Lake Recreation Area and the new replacement park land to be provided by ANR through the land plan. The walkway at 7`h Street (please refer to color site plan below) will provide direct access to the replacement park ("Park') which in turn will be connected to the Seccombe Lake Recreation Area, giving the residents the feel of one extensive park. AM !A11 U4 i q ' 1 P a ;.._. •. ,, y` ,ems 1 , i + 3 ILLUSTRATIVE SITE PLAN 19 1 RESOLUTION NO. c (oply 2 RE SOLUTION OF THE MAYOR AND COMMON COUNCIL AUTHORIZING 3 THE CITY MANAGER TO EXECUTE A COMMERCIAL LEASE BETWEEN THE ! CITY OF SAN BERNARDINO AND THE REDEVELOPMENT AGENCY OF THE 1 4 CITY OF SAN BERNARDINO FOR THE LEASE OF PROPERTY KNOWN AS 201A NORTH "E" STREET, SUITE 103 AND THE EAST HALF OF SUITE 106 ON 5 BEHALF OF THE CITY OF SAN BERNNARDINO PARKS AND RECREATION DEPARTMENT. 6 ., I BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 8 SECTION 1. The City Manager is hereby authorized to execute a Commercial Lease between i the City of San Bernardino and the Redevelopment Agency of the City of San Bernardino for 10 I I the lease of property known as 201 A North "E" Street, Suite 103 and the east half of Suite 106 12 on behalf of the City of San Bernardino Parks and Recreation Department, a copy of which is 1311 attached hereto, marked Exhibit"A" and incorporated herein by reference as fully as though set All forth at length. 15� SECTION 2: The term of the Commercial Lease is month-to-month, commencing on 161 I October 1, 2007. This lease may remain in full force and effect month-to-month thereafter 1a1� 18 until either party shall deliver to the other party a termination notice at least thirty (30) days 19 prior to the termination date to be specified in such notice. 20 SECTION 3. The authorization granted hereunder shall expire and be void and of no 21 further effect if the agreement is not executed by both parties and returned to the office of the 22 City Clerk within sixty (60) days following the effective date of the resolution. 23 24 251 26 Ill Aon& 97 28 �/9 1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL AUTHORIZING 2 THE CITY MANAGER TO EXECUTE A COMMERCIAL LEASE BETWEEN THE CITY OF SAN BERNARDINO AND THE REDEVELOPMENT AGENCY OF THE 3 CITY OF SAN BERNARDINO FOR THE LEASE OF PROPERTY KNOWN AS 201A NORTH "E" STREET, SUITE 103 AND THE EAST HALF OF SUITE 106 ON 4 BEHALF OF THE CITY OF SAN BERNARDINO PARKS AND RECREATION DEPARTMENT. I 5 6 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor 7 and Common Council of the City of San Bernardino at a meeting thereof, held 8 on the day of , 2007, by the following vote, to wit: 9 Council Members: AYES NAYS ABSTAIN ABSENT 10 ESTRADA 11 BAXTER 12 BRINKER 13 14 DERRY 15 KELLEY 16 VAN JOHNSON 1 MC CAMMACK 18 19 Rachel G. Clark, City Clerk 20 21 The foregoing resolution is hereby approved this day of 12007. 22 23 Patrick J. Morris, Mayor City of San Bernardino 24 Approved as to form: 25 26 By: es F. Penman, City Attorney 27 28 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO COMMERCIAL LEASE (201 North "E" Street) 1. PARTIES. This Commercial Lease is made and entered into this 171h day of September 2007 (this "Lease"), by and between the Redevelopment Agency of the City of San Bernardino, a public body, corporate and politic (hereinafter referred to as "Landlord") and the City of San Bernardino ("City"), Parks and Recreation Department (hereinafter referred to as "Tenant"). 2. PREMISES. Landlord hereby leases to Tenant and Tenant hereby leases from Landlord, on the terms and conditions hereafter set forth the office portions of that certain real property and the building and other tenant improvements located thereon situated in the City, County of San Bernardino, State of California, commonly known as 201A North "E" Street, Suite 103 and the east half of Suite 106, as described in Exhibit "A" (see attached) (said portion of the real property to be leased and occupied by Tenant as office space within said Suite 103 and the applicable portion of Suite 106 is hereinafter called the "Premises"). 3. TERM. The term of this Lease shall be month-to-month, commencing on October 1, 2007, and shall expire and terminate as of the last calendar day of said month. This Lease may remain in full force and effect from and after said stated termination date and month-to-month thereafter until either party shall deliver to the other party a termination notice at least thirty (30) days prior to the termination date to be specified in such notice. Any such termination shall be effective as of the last calendar day of a month provided that the requisite notice has been duly given by the party then seeking to terminate this Lease. 4. RENT. Tenant shall pay Landlord as rent for the Premises the following sums per month, in advance on the first day of each calendar month during the term of this Lease: Tenant will be responsible for all costs associated with Tenant Improvements, phone, computer and communication installations within the Premises as leased pursuant to this Lease. Tenant shall pay Landlord monthly rent in the amount of Three Thousand Three Hundred Dollars (53,300) for the Premises. Rent for any period during the term of this Lease which is for less than one (1) month, shall be a pro rata portion of the monthly installment. Rent shall be payable without notice or demand and without any deduction, off-set or abatement in lawful money of the United States to the Landlord at the address stated herein for notices or to such other persons or such other places as the Landlord may designate to Tenant in writing. Landlord reserves the right to increase the rent at anytime after the initial term of this Lease upon the delivery of not less than thirty (30) calendar days' notice to Tenant. In the event Page ' of 6 Exhibit "A" Tenant should refuse to pay such increased rent or fail to pay the required increased rental amount when due and payable, such action of the Tenant shall be deemed to be an automatic termination of this Lease by Tenant. In the event Tenant holds over its tenancy after the period specified in any notice of termination duly delivered from Landlord to Tenant, Tenant shall be responsible for payment of rent for such holdover period equal to two (2) times the monthly rent then in effect immediately prior to such commencement of a holdover status under this Lease. 5. USE. Tenant shall use the Premises only for the general offices of the City, Parks and Recreation Department, and for no other purpose without the Landlord's prior written consent. Tenant shall not do, bring or keep anything in or about the Premises that will cause a cancellation of any insurance covering the Premises or the building in which the Premises are located. If the rate of any insurance carried by the Landlord is increased as result of Tenant's use of the Premises, Tenant shall pay to Landlord within ten (10) calendar days after written demand from Landlord, the amount of any such increase. Tenant shall comply with all laws concerning the Premises or Tenant's use of the Premises, including, without limitation, the obligation at Tenant's cost to alter, maintain or restore the Premises in compliance and conformity with all laws relating to the condition, use or occupancy of the Premises by Tenant during the term of this Lease. Tenant shall not use or permit the use of the Premises in any manner that will tend to cause waste or a nuisance or which may unreasonably disturb any other tenant or user of the Premises. Tenant hereby accepts the Premises in their condition existing as of the date that Tenant possesses the Premises. 6. UTILITIES. Landlord will pay for all water, gas, electricity, air conditioning, refuse and five (5) days per week janitorial service. Tenant shall pay for telephone, internet and other utility services supplied to the Premises together with any taxes thereon and for all connection charges. 7. MAINTENANCE AND REPAIRS. (a) Landlord's Obligations. Except as provided in Article 12, and except for damage caused by any negligent or intentional act or omission of Tenant, Tenant's agents, employees or invitees, Landlord, at its sole cost and expense, shall provide janitorial service, keep in good condition and repair, the foundations, exterior walls and exterior roof of the Premises. Landlord shall also maintain the unexposed electrical, plumbing and sewage systems including, without limitation, those improvements that are a part of the Premises or of which the Premises are a part. The Landlord shall also maintain the heating, ventilating and air conditioning systems servicing the Premises. Page 2 of 6 8. INSURANCE: INDEMNITY. (a) Hold Harmless. Tenant shall defend, indemnify and hold Landlord harmless from and against any and all claims arising from Tenant's use or occupancy of the Premises or from the conduct of its business or from any activity, work or things which may be permitted or suffered by Tenant in or about the Premises, including all damage, costs, attorney's fees, expenses and liabilities incurred in the defense of any claim or action or proceeding arising therefrom. Except for Landlord's willful or grossly negligent conduct, Tenant hereby assumes all risk of damage to property or injury to persons in or about the Premises from any cause, and Tenant hereby waives all claims in respect thereof against the Landlord. (b) Exemption of Landlord from Liability. Except for Landlord's willful or grossly negligent conduct, Tenant hereby agrees that Landlord shall not be liable for any injury to Tenant's business or loss of income therefrom or for damage to the goods, wares, merchandise or other property of Tenant, Tenant's employees, invitees, customers or any other person in or about the Premises; nor shall Landlord be liable for injury to the person of Tenant's employees, agents, contractors or invitees, whether such damage or injury is caused by or results from fire, steam, electricity, gas, water or rain, or from the breakage, leakage obstruction or other defects of pipes, sprinklers, wires, appliance, plumbing, air conditioning or lighting fixtures, or from any other cause, whether such damage results from conditions arising upon the Premises or upon other portions of the building in which the Premises are a part, or from any other sources or places. Landlord shall not be liable to Tenant for any damages arising from any act or neglect of any other tenant, if any, of the building in which the Premises are located. 9. ASSIGNMENT AND SUBLETTING. Tenant shall not voluntarily or by operation of law, assign, transfer, sublet, mortgage or otherwise transfer or encumber all or any part of Tenant's interest in this Lease or in the Premises without Landlord's prior written consent, which consent may be withheld at the sole and absolute discretion of the Landlord. Any attempted assignment, transfer, mortgage, encumbrance or subletting without such consent shall be void and shall constitute a breach of this Lease. Regardless of Landlord's consent, no subletting or assignment shall release Tenant of Tenant's obligation to pay the rent and to perform all other obligations to be performed by Tenant hereunder for the term of this Lease. The acceptance of rent by Landlord from any other person shall not be deemed a waiver by Landlord of anv provision hereof. Consent to one (1) assignment or subletting shall not be deemed consent to any subsequent assignment or subletting. 10. DEFAULT. (a) Events of Default. Page 3 of 6 The occurrence of any one (1) or more of the following events shall constitute a default and breach of this Lease by Tenant: (1) Failure to pay rent when due, if the failure continues for five (5) business days after written notice has been given to Tenant. (2) Abandonment and vacation of the Premises (failure to occupy the Premises for fourteen (14) consecutive calendar days shall be deemed an abandonment and vacation). 11. SIGNS. Tenant shall not have the right to place, construct or maintain any sign, advertisement, awning, banner, or other exterior decorations on the building or other improvements that are a part of the Premises without Landlord's prior written consent, which consent may be withheld by Landlord, at its sole and absolute discretion. 12. SUBORDINATION. This Lease, at Landlord's sole option and absolute discretion, may be subordinated to any ground lease, mortgage, deed of trust or any other hypothecation for security now or hereafter placed upon the real property of which the Premises are a part and to any and all advances made on the security thereof and to all renewal, modifications and extensions thereof. Notwithstanding any such subordination, Tenant's right to quiet possession of the Premises shall not be disturbed if Tenant is not in default and so long as Tenant shall pay the rent and obsen-e and perform all the other provisions of this Lease, unless this Lease is otherwise terminated pursuant to its terms. If any mortgagee, trustee or ground lessor shall elect to have this Lease prior to the lien of its mortgage or deed of trust or ground lease, and shall give written notice thereof to Tenant, this Lease shall be deemed prior to such mortgage, deed of trust or ground lease, whether this Lease is dated prior to or subsequent to the date of such mortgage, deed of trust or ground lease, or the date of recording thereof. Tenant agrees to execute any documents required to effect such subordination or to make this Lease prior to the lien of any mortgage, deed of trust or ground lease, as the case may be, and failing to do so within ten (10) calendar days after written demand from Landlord does hereby make, constitute and irrevocably appoint Landlord as Tenant's attorney in fact and in Tenant's name, place and stead to do so. 13. SURRENDER. On the last day of the term hereof, or on any sooner termination, Tenant shall surrender the Premises to Landlord in good condition, broom clean, subject to ordinary wear and tear upon the Premises which change in condition shall be accepted by Landlord. Tenant shall repair any damage to the Premises occasioned by its use thereof, or by the removal of Tenant's trade fixtures, furnishing and equipment which repair shall include the patching and filling of holes and repair of structural damage. Tenant shall remove all of its personal property and fixtures on the Premises prior to the expiration of the term of this Lease and if required by Landlord pursuant to Article 10(a) above, any alterations, improvements or additions made by Tenant to the Premises. If Tenant fails to surrender the Premises to Landlord on the expiration of the Page 4 of 6 Lease as required by this paragraph, Tenant shall defend, indemnify and hold Landlord harmless from all damages resulting from Tenant's failure to surrender the Premises. 14. HOLDING OVER. If the Tenant, with the Landlord's consent, remains in possession of the Premises after the expiration or termination of the term of this Lease, such possession by Tenant shall be deemed to be a tenancy from month-to-month at a rental in the amount equal to the last monthly rental plus all other charges payable hereunder, upon all the provisions of this Lease applicable to month-to-month tenancy. 15. BINDING ON SUCCESSORS AND ASSIGNS. The terms, conditions and covenants of this Lease shall be binding upon and shall inure to the benefit of each of the parties hereto, their heirs, personal representatives, successors and assigns. 16. NOTICES. Whenever under this Lease, a provision is made for any demand, notice or declaration of anv kind, it shall be in writing and served either personally or sent by registered or certified United States mail, postage prepaid, addressed at the addresses set forth below: TO LANDLORD: Redevelopment Agency of the City of San Bernardino Attention: Maggie Pacheco, Executive Director 201 North "E" Street, Suite 301 San Bernardino, California 92401 TO TENANT: City of San Bernardino Parks and Recreation Department Attention: Kevin Hawkins, Director 201 North "E" Street, Suite 103 San Bernardino, California 92401 Such notices shall be deemed to be received within forty-eight (48) hours from the time of mailing, if mailed as provided for in this paragraph or upon receipt if served personally upon the other party. 17. LANDLORD'S RIGHT TO INSPECTION. Landlord and Landlord's agents shall have the right to enter the Premises at any reasonable time for the purpose of inspecting same, showing the same to prospective purchasers or lenders, and making such alteration, repairs, improvements or additions to the Premises or to the building of which the Premises are a part as Landlord may deem necessary or desirable. Landlord may, at any time, place on or about the Premises, any ordinary "For Sale" signs and Landlord may, at any time during the term of this Lease, place on or about the Premises, any ordinary "For Sale or Lease" signs, all without rebate of rent or liability to Tenant. Page 5 of 6 18. CHOICE OF LAW. This Lease shall be governed by the laws of the State of California. 19. LANDLORD'S LIABILITY. The term "Landlord" as used in this Lease shall mean only the owner or owners at the time in question of the fee title or Lessee's interest in a ground lease of the Premises, and in the even, of any transfer of such title or interest, Landlord herein names such successor in interest, and in case of any subsequent transfers to the then successor in interest, as the real party in interest to this Lease and Landlord shall be relieved from and after the date of such transfer of all liability in respect to Landlord's obligations thereafter to be performed. The obligations contained in this Lease to be performed by Landlord shall be binding upon the Landlord's successors and assigns, only during their respective period of ownership. 20. INCORPORATION OF PRIOR AGREEMENTS. This Lease contains all agreements of the parties with respect to any matter mentioned herein. No prior agreement or understanding pertaining to any such matter shall be effective. This Lease may be modified only in writing. and signed by the parties in interest at the time of such modification. The parties hereto have executed this Lease on the date first above written. LANDLORD: TENANT: Redevelopment Agency City of San Bernardino of the City of San Bernardino By: By: Maggie Pacheco, Executive Director Fred Wilson, City Manager Approved as to Form and Legal Content: Approved as to Form: By: By: Agency Counsel James F. Penman, City Attorney Page 6 of 6 I'M MIA®RA Ipp MUNI ILI Mrs -IMANA, I IWA, 1404 MIA B,VIA, OOM 10111!�4 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO COMMERCIAL LEASE (201 North "E" Street) 1. PARTIES. This Commercial Lease is made and entered into this 17`Lh day of September 2007 (this "Lease"), by and between the Redevelopment Agency of the City of San Bernardino, a public body, corporate and politic (hereinafter referred to as "Landlord") and the City of San Bernardino ("City"), Parks and Recreation Department (hereinafter referred to as "Tenant"). 2. PREMISES. Landlord hereby leases to Tenant and Tenant hereby leases from Landlord, on the terms and conditions hereafter set forth the office portions of that certain real property and the building and other tenant improvements located thereon situated in the City, County of San Bernardino, State of California, commonly known as 201A North "E" Street, Suite 103 and the east half of Suite 106, as described in Exhibit "A" (see attached) (said portion of the real property to be leased and occupied by Tenant as office space within said Suite 103 and the applicable portion of Suite 106 is hereinafter called the "Premises"). 3. TERM. The term of this Lease shall be month-to-month, commencing on October 1, 2007, and shall expire and terminate as of the last calendar day of said month. This Lease may remain in full force and effect from and after said stated termination date and month-to-month thereafter until either party shall deliver to the other party a termination notice at least thirty (30) days prior to the termination date to be specified in such notice. Any such termination shall be effective as of the last calendar day of a month provided that the requisite notice has been duly given by the party then seeking to terminate this Lease. 4. RENT. Tenant shall pay Landlord as rent for the Premises the following sums per month, in advance on the first day of each calendar month during the term of this Lease: T enant will be responsible for all costs associated with Tenant Improvements, phone, computer and communication installations within the Premises as leased pursuant to this Lease. Tenant shall pay Landlord monthly rent in the amount of Three Thousand Three Hundred Dollars ($3,300) for the Premises. Rent for any period during the term of this Lease which is for less than one (1) month, shall be a pro rata portion of the monthly installment. Rent shall be payable without notice or demand and without any deduction, off-set or abatement in lawful money of the United States to the Landlord at the address stated herein for notices or to such other persons or such other places as the Landlord may designate to Tenant in writing. Landlord reserves the right to increase the rent at anytime after the initial term of this Lease upon the delivery of not less than thirty (30) calendar days' notice to Tenant. In the event Page 1 of 6 Tenant should refuse to pay such increased rent or fail to pay the required increased rental amount when due and payable, such action of the Tenant shall be deemed to be an automatic termination of this Lease by Tenant. In the event Tenant holds over its tenancy after the period specified in any notice of termination duly delivered from Landlord to Tenant, Tenant shall be responsible for payment of rent for such holdover period equal to two (2) times the monthly rent then in effect immediately prior to such commencement of a holdover status under this Lease. 5. USE. Tenant shall use the Premises only for the general offices of the City, Parks and Recreation Department, and for no other purpose without the Landlord's prior written consent. Tenant shall not do, bring or keep anything in or about the Premises that will cause a cancellation of any insurance covering the Premises or the building in which the Premises are located. If the rate of any insurance carried by the Landlord is increased as result of Tenant's use of the Premises, Tenant shall pay to Landlord within ten (10) calendar days after written demand from Landlord, the amount of any such increase. Tenant shall comply with all laws concerning the Premises or Tenant's use of the Premises, including, without limitation, the obligation at Tenant's cost to alter, maintain or restore the Premises in compliance and conformity with all laws relating to the condition, use or occupancy of the Premises by Tenant during the term of this Lease. Tenant shall not use or permit the use of the Premises in any manner that will tend to cause waste or a nuisance or which may unreasonably disturb any other tenant or user of the Premises. Tenant hereby accepts the Premises in their condition existing as of the date that Tenant possesses the Premises. 6. UTILITIES. Landlord will pay for all water, gas, electricity, air conditioning, refuse and five (5) days per week janitorial service. Tenant shall pay for telephone, internet and other utility services supplied to the Premises together with any taxes thereon and for all connection charges. 7. MAINTENANCE AND REPAIRS. (a) Landlord's Obligations. Except as provided in Article 12, and except for damage caused by any negligent or intentional act or omission of Tenant, Tenant's agents, employees or invitees, Landlord, at its sole cost and expense, shall provide janitorial service, keep in good condition and repair, the foundations, exterior walls and exterior roof of the Premises. Landlord shall also maintain the unexposed electrical, plumbing and sewage systems including, without limitation, those improvements that are a part of the Premises or of which the Premises are a part. The Landlord shall also maintain the heating, ventilating and air conditioning systems servicing the Premises. Page 2 of 6 8. INSURANCE: INDEMNITY. (a) Hold Harmless. Tenant shall defend, indemnify and hold Landlord harmless from and against any and all claims arising from Tenant's use or occupancy of the Premises or from the conduct of its business or from any activity, work or things which may be permitted or suffered by Tenant in or about the Premises, including all damage, costs, attorney's fees, expenses and liabilities incurred in the defense of any claim or action or proceeding arising therefrom. Except for Landlord's willful or grossly negligent conduct, Tenant hereby assumes all risk of damage to property or injury to persons in or about the Premises from any cause, and Tenant hereby waives all claims in respect thereof against the Landlord. (b) Exemption of Landlord from Liability. Except for Landlord's willful or grossly negligent conduct, Tenant hereby agrees that Landlord shall not be liable for any injury to Tenant's business or loss of income therefrom or for damage to the goods, wares, merchandise or other property of Tenant, Tenant's employees, invitees, customers or any other person in or about the Premises; nor shall Landlord be liable for injury to the person of Tenant's employees, agents, contractors or invitees, whether such damage or injury is caused by or results from fire, steam, electricity, gas, water or rain, or from the breakage, leakage obstruction or other defects of pipes, sprinklers, wires, appliance, plumbing, air conditioning or lighting fixtures, or from any other cause, whether such damage results from conditions arising upon the Premises or upon other portions of the building in which the Premises are a part, or from any other sources or places. Landlord shall not be liable to Tenant for any damages arising from any act or neglect of any other tenant, if any, of the building in which the Premises are located. 9. ASSIGNMENT AND SUBLETTING. Tenant shall not voluntarily or by operation of law, assign, transfer, sublet, mortgage or otherwise transfer or encumber all or any part of Tenant's interest in this Lease or in the Premises without Landlord's prior written consent, which consent may be withheld at the sole and absolute discretion of the Landlord. Any attempted assignment, transfer, mortgage, encumbrance or subletting without such consent shall be void and shall constitute a breach of this Lease. Regardless of Landlord's consent, no subletting or assignment shall release Tenant of Tenant's obligation to pay the rent and to perform all other obligations to be performed by Tenant hereunder for the term of this Lease. The acceptance of rent by Landlord from any other person shall not be deemed a waiver by Landlord of any provision hereof. Consent to one (1) assignment or subletting shall not be deemed consent to any subsequent assignment or subletting. 10. DEFAULT. (a) Events of Default. Page 3 of 6 The occurrence of any one (1) or more of the following events shall constitute a default and I breach of this Lease by Tenant: (1) Failure to pay rent when due, if the failure continues for five (5) business days after written notice has been given to Tenant. (2) Abandonment and vacation of the Premises (failure to occupy the Premises for fourteen (14) consecutive calendar days shall be deemed an abandonment and vacation). 11. SIGNS. Tenant shall not have the right to place, construct or maintain any sign, advertisement, awning, banner, or other exterior decorations on the building or other improvements that are a part of the Premises without Landlord's prior written consent, which consent may be withheld by Landlord, at its sole and absolute discretion. 12. SUBORDINATION. This Lease, at Landlord's sole option and absolute discretion, may be subordinated to any ground lease, mortgage, deed of trust or any other hypothecation for security now or hereafter placed upon the real property of which the Premises are a part and to any and all advances made on the security thereof and to all renewal, modifications and extensions thereof. Notwithstanding any such subordination, Tenant's right to quiet possession of the Premises shall not be disturbed if Tenant is not in default and so long as Tenant shall pay the rent and observe and perform all the other provisions of this Lease, unless this Lease is otherwise terminated pursuant to its terms. If any mortgagee, trustee or ground lessor shall elect to have this Lease prior to the lien of its mortgage or deed of trust or ground lease, and shall give written notice thereof to Tenant, this Lease shall be deemed prior to such mortgage, deed of trust or ground lease, whether this Lease is dated prior to or subsequent to the date of such mortgage, deed of trust or ground lease, or the date of recording thereof. Tenant agrees to execute any documents required to effect such subordination or to make this Lease prior to the lien of any mortgage, deed of trust or ground lease, as the case may be, and failing to do so within ten (10) calendar days after written demand from Landlord does hereby make, constitute and irrevocably appoint Landlord as Tenant's attorney in fact and in Tenant's name, place and stead to do so. 13. SURRENDER. On the last day of the term hereof, or on any sooner termination, Tenant shall surrender the Premises to Landlord in good condition, broom clean, subject to ordinary wear and tear upon the Premises which change in condition shall be accepted by Landlord. Tenant shall repair any damage to the Premises occasioned by its use thereof, or by the removal of Tenant's trade fixtures, furnishing and equipment which repair shall include the patching and filling of holes and repair of structural damage. Tenant shall remove all of its personal property and fixtures on the Premises prior to the expiration of the term of this Lease and if required by Landlord pursuant to Article 10(a) above, any alterations, improvements or additions made by Tenant to 4Dthe Premises. If Tenant fails to surrender the Premises to Landlord on the expiration of the Page 4 of 6 Lease as required by this paragraph, Tenant shall defend, indemnify and hold Landlord harmless from all damages resulting from Tenant's failure to surrender the Premises. 14. HOLDING OVER. If the Tenant, with the Landlord's consent, remains in possession of the Premises after the expiration or termination of the term of this Lease, such possession by Tenant shall be deemed to be a tenancy from month-to-month at a rental in the amount equal to the last monthly rental plus all other charges payable hereunder, upon all the provisions of this Lease applicable to month-to-month tenancy. 15. BINDING ON SUCCESSORS AND ASSIGNS. The terms, conditions and covenants of this Lease shall be binding upon and shall inure to the benefit of each of the parties hereto, their heirs, personal representatives, successors and assigns. 16. NOTICES. Whenever under this Lease, a provision is made for any demand, notice or declaration of any kind, it shall be in writing and served either personally or sent by registered or certified United States mail, postage prepaid, addressed at the addresses set forth below: TO LANDLORD: Redevelopment Agency of the City of San Bernardino Attention: Maggie Pacheco, Executive Director 201 North "E" Street, Suite 301 San Bernardino, California 92401 TO TENANT: City of San Bernardino Parks and Recreation Department Attention: Kevin Hawkins, Director 201 North "E" Street, Suite 103 San Bernardino, California 92401 Such notices shall be deemed to be received within forty-eight (48) hours from the time of mailing, if mailed as provided for in this paragraph or upon receipt if served personally upon the other party. 17. LANDLORD'S RIGHT TO INSPECTION. Landlord and Landlord's agents shall have the right to enter the Premises at any reasonable time for the purpose of inspecting same, showing the same to prospective purchasers or lenders, and making such alteration, repairs, improvements or additions to the Premises or to the building of which the Premises are a part as Landlord may deem necessary or desirable. Landlord may, at any time, place on or about the Premises, any ordinary "For Sale" signs and Landlord may, at any time during the term of this Lease, place on or about the Premises, any ordinary"For Sale or Lease" signs, all without rebate of rent or liability to Tenant. Page 5 of 6 18. CHOICE OF LAW. This Lease shall be governed by the laws of the State of California. 19. LANDLORD'S LIABILITY. The term "Landlord" as used in this Lease shall mean only the owner or owners at the time in question of the fee title or Lessee's interest in a ground lease of the Premises, and in the event of any transfer of such title or interest, Landlord herein names such successor in interest, and in case of any subsequent transfers to the then successor in interest, as the real party in interest to this Lease and Landlord shall be relieved from and after the date of such transfer of all liability in respect to Landlord's obligations thereafter to be performed. The obligations contained in this Lease to be performed by Landlord shall be binding upon the Landlord's successors and assigns, only during their respective period of ownership. 20. INCORPORATION OF PRIOR AGREEMENTS. This Lease contains all agreements of the parties with respect to any matter mentioned herein. No prior agreement or understanding pertaining to any such matter shall be effective. This Lease may be modified only in writing, and signed by the parties in interest at the time of such modification. The parties hereto have executed this Lease on the date first above written. LANDLORD: TENANT: Redevelopment Agency City of San Bernardino of the City of San Bernardino By: By: Maggie Pacheco, Executive Director Fred Wilson, City Manager Approved as to Form and Legal Content: Approved as to Form: By: By: L - Agency Counsel James F. Penman, City Attorney Page 6 of 6 :a EXHIBIT "A" w AREA PROPOSED TO BE f ' \ LEASED BY THE PARKS RECREATION AND COMM. k \ SERVICES DEPT. Page 7 of 7 I RESOLUTION NO. 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL AUTHORIZING 3 THE CITY MANAGER TO EXECUTE A COMMERCIAL LEASE BETWEEN THE CITY OF SAN BERNARDINO AND THE REDEVELOPMENT AGENCY OF THE 4 CITY OF SAN BERNARDINO FOR THE LEASE OF PROPERTY KNOWN AS 201A NORTH "E" STREET, SUITE 103 AND THE EAST HALF OF SUITE 106 ON 5 BEHALF OF THE CITY OF SAN BERNARDINO PARKS AND RECREATION DEPARTMENT. 6 7 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 8 SECTION 1. The City Manager is hereby authorized to execute a Commercial Lease between 9 the City of San Bernardino and the Redevelopment Agency of the City of San Bernardino for 10 11 the lease of property known as 201A North "E" Street, Suite 103 and the east half of Suite 106 12 on behalf of the City of San Bernardino Parks and Recreation Department, a copy of which is 13 attached hereto, marked Exhibit "A" and incorporated herein by reference as fully as though set 14 forth at length. 15 SECTION 2: The term of the Commercial Lease is month-to-month, commencing on 1s October 1, 2007. This lease may remain in full force and effect month-to-month thereafter 17 18 until either party shall deliver to the other party a termination notice at least thirty (30) days 19 prior to the termination date to be specified in such notice. 20 SECTION 3. The authorization granted hereunder shall expire and be void and of no 21 further effect if the agreement is not executed by both parties and returned to the office of the 22 City Clerk within sixty (60) days following the effective date of the resolution. 23 24 25 26 27 28 I 1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL AUTHORIZING 2 THE CITY MANAGER TO EXECUTE A COMMERCIAL LEASE BETWEEN THE CITY OF SAN BERNARDINO AND THE REDEVELOPMENT AGENCY OF THE 3 CITY OF SAN BERNARDINO FOR THE LEASE OF PROPERTY KNOWN AS 201A NORTH "E" STREET, SUITE 103 AND THE EAST HALF OF SUITE 106 ON 4 BEHALF OF THE CITY OF SAN BERNARDINO PARKS AND RECREATION DEPARTMENT. 5 6 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor 7 and Common Council of the City of San Bernardino at a meeting thereof, held 8 on the day of , 2007, by the following vote, to wit: 9 Council Members: AYES NAYS ABSTAIN ABSENT 10 ESTRADA 11 BAXTER 12 BRINKER 13 14 DERRY 15 KELLEY 16 VAN JOHNSON 17 MC CAMMACK 18 19 Rachel G. Clark, City Clerk 20 21 The foregoing resolution is hereby approved this day of 12007. 22 23 Patrick J. Morris, Mayor City of San Bernardino 24 Approved as to form: 25 26 By: James F. Penman, City Attorney 27 28 Exhibit A REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO COMMERCIAL LEASE (201 North "E" Street) 1. PARTIES. This Commercial Lease is made and entered into this 17`—" day of September 2007 (this "Lease"), by and between the Redevelopment Agency of the City of San Bernardino, a public body, corporate and politic (hereinafter referred to as "Landlord") and the City of San Bernardino ("City"), Parks and Recreation Department (hereinafter referred to as "Tenant"). 2. PREMISES. Landlord hereby leases to Tenant and Tenant hereby leases from Landlord, on the terms and conditions hereafter set forth that certain real property and the building and other improvements located thereon situated in the City, County of San Bernardino, State of California, commonly known as 201A North "E" Street, Suite 103 and the east half of Suite 106, as described in Exhibit"A" (see attached) (said real property is hereinafter called the "Premises"). 3. TERM. The term of this Lease shall be month-to-month, commencing on October 1, 2007, and shall expire and terminate as of the last calendar day of said month. This Lease may remain in full force and effect from and after said stated termination date and month-to-month thereafter until either party shall deliver to the other party a termination notice at least thirty (30) days prior to the termination date to be specified in such notice. Any such termination shall be effective as of the last calendar day of a month provided that the requisite notice has been duly given by the party then seeking to terminate this Lease. 4. RENT. Tenant shall pay Landlord as rent for the Premises the following sums per month, in advance on the first day of each calendar month during the term of this Lease: Tenant will be responsible for all costs associated with Tenant Improvements, phone, computer and communication installations within the Premises as leased pursuant to this Lease. Tenant shall pay Landlord monthly rent in the amount of Three Thousand Three Hundred Dollars ($3,300) for the Premises. Rent for any period during the term of this Lease which is for less than one (1) month, shall be a pro rata portion of the monthly installment. Rent shall be payable without notice or demand and without any deduction, off-set or abatement in lawful money of the United States to the Landlord at the address stated herein for notices or to such other persons or such other places as the Landlord may designate to Tenant in writing. Landlord reserves the right to increase the rent at anytime after the initial term of this Lease upon the deliver of not less than thirty (30) calendar days' notice to Tenant. In the event Tenant should refuse to pay such increased rent or fail to pay the required increased rental amount when due and payable, such action of the Tenant shall be deemed to be an automatic termination of this Lease by Tenant. Page 1 of 7 S:\Council Actions\Council Actions Jul-Sep 2007'Lease with EDA 201 N E St ste 103 and half of 106.doc In the event Tenant holdover its tenancy after the period specified in any notice of termination duly delivered from Landlord to Tenant, Tenant shall be responsible for payment of rent for such holdover period equal to two (2) times the monthly rent then in effect immediately prior to such commencement of a holdover status under this Lease. 5. USE. Tenant shall use the Premises only for the general offices of the City, Parks and Recreation Department, and for no other purpose without the Landlord's prior written consent. Tenant shall not do, bring or keep anything in or about the Premises that will cause a cancellation of any insurance covering the Premises or the building in which the Premises are located. If the rate of any insurance carried by the Landlord is increased as result of Tenant's use of the Premises, Tenant shall pay to Landlord within ten (10) calendar days after written demand from Landlord, the amount of any such increase. Tenant shall comply with all laws concerning the Premises or Tenant's use of the Premises, including, without limitation, the obligation at Tenant's cost to alter, maintain or restore the Premises in compliance and conformity with all laws relating to the condition, use or occupancy of the Premises by Tenant during the term of this Lease. Tenant shall not use or permit the use of the Premises in any manner that will tend to cause waste or a nuisance or which may unreasonably disturb any other tenant or user of the Premises. Tenant hereby accepts the Premises in their condition existing as of the date that Tenant possesses the Premises. 6. UTILITIES. Landlord will pay for all water, gas, electricity, air conditioning, refuse and five (5) days per week janitorial service. Tenant shall pay for telephone, internet and other utility services supplied to the Premises together with any taxes thereon and for all connection charges. 7. MAINTENANCE AND REPAIRS. (a) Landlord's Obligations. Except as provided in Article 12, and except for damage caused by any negligent or intentional act or omission of Tenant, Tenant's agents, employees or invitees, Landlord, as its sole cost and expense, shall provide janitorial service, keep in good condition and repair, the foundations, exterior walls and exterior roof of the Premises. Landlord shall also maintain the unexposed electrical, plumbing and sewage systems including, without limitation, those improvements that are a part of the Premises or of which the Premises are a part. The Landlord shall also maintain the heating, ventilating and air conditioning systems servicing the Premises. 8. INSURANCE: INDEMNITY. (a) Hold Harmless. Tenant shall defend, indemnify and hold Landlord harmless from and against any and all claims arising from Tenant's use or occupancy of the Premises or from the conduct of its Page 2 of 7 S:\Council Actions\Council Actions Jul-Sep 2007\Lease with EDA 201 N E St ste 103 and half of 106 doe business or from any activity, work or things which may be permitted or suffered by Tenant in or about the premises, including all damage, costs, attorney's fees, expenses and liabilities incurred in the defense of any claim or action or proceeding arising therefrom. Except for Landlord's willful or grossly negligent conduct, Tenant hereby assumes all risk of damage to property or injury to persons in or about the Premises from any cause, and Tenant hereby waives all claims in respect thereof against the Landlord. (b) Exemption of Landlord from Liability. Except for Landlord's willful or grossly negligent conduct, Tenant hereby agrees that Landlord shall not be liable for any injury to Tenant's business or loss of income therefrom or for damage to the goods, wares, merchandise or other property of Tenant, Tenant's employees, invitees, customers or any other person in or about the premises; nor shall Landlord be liable for injury to the person of Tenant's employees, agents, contractors or invitees, whether such damage or injury is caused by or results from fire, steam, electricity, gas, water or rain, or from the breakage, leakage obstruction or other defects of pipes, sprinklers, wires, appliance, plumbing, air conditioning or lighting fixtures, or from any other cause, whether such damage results from conditions arising upon the Premises or upon other portions of the building in which the Premises are a part, or from any other sources or places. Landlord shall not be liable to Tenant for any damages arising from any act or neglect of any other tenant, if any, of the building in which the Premises are located. 9. ASSIGNMENT AND SUBLETTING. Tenant shall not voluntarily or by operation of law, assign, transfer, sublet, mortgage or otherwise transfer or encumber all or any part of Tenant's interest in this Lease or in the Premises without Landlord's prior written consent, which consent may be withheld at the sole and absolute discretion of the Landlord. Any attempted assignment, transfer, mortgage, encumbrance or subletting without such consent shall be void and shall constitute a breach of this Lease. Regardless of Landlord's consent, no subletting or assignment shall release Tenant of Tenant's obligation to pay the rent and to perform all other obligations to be performed by Tenant hereunder for the term of this Lease. The acceptance of rent by Landlord from any other person shall not be deemed a waiver by Landlord of any provision hereof. Consent to one (1) assignment or subletting shall not be deemed consent to any subsequent assignment or subletting. 10. DEFAULT. (a) Events of Default. The occurrence of any one (1) or more of the following events shall constitute a default and breach of this Lease by Tenant: (1) Failure to pay rent when due, if the failure continues for five (5) business days after written notice has been given to Tenant. Page 3 of 7 Q ar. —il aetinns\Council Actions Jul-Sep 2007\Lease with EDA 201 N E St ste 103 and half of 106.doc (2) Abandonment and vacation of the Premises (failure to occupy the Premises for fourteen (14) consecutive calendar days shall be deemed an abandonment and vacation). 11. SIGNS. Tenant shall not have the right to place, construct or maintain any sign, advertisement, awning, banner, or other exterior decorations on the building or other improvements that are a part of the Premises without Landlord's prior written consent, which consent may be withheld by Landlord, at its sole and absolute discretion. 12. SUBORDINATION. This Lease, at Landlord's sole option and absolute discretion, may be subordinated to any ground lease, mortgage, deed of trust or any other hypothecation for security now or hereafter placed upon the real property of which the Premises are a part and to any and all advances made on the security thereof and to all renewal, modifications and extensions thereof. Notwithstanding any such subordination, Tenant's right to quiet possession of the Premises shall not be disturbed if Tenant is not in default and so long as Tenant shall pay the rent and observe and perform all the other provisions of this Lease, unless this Lease is otherwise terminated pursuant to its terms. If any mortgages, trustee or ground lessor shall elect to have this Lease prior to the lien of its mortgage or deed of trust or ground lease, and shall give written notice thereof to Tenant, this Lease shall be deemed prior to such mortgage, deed of trust or ground lease, whether this Lease is dated prior to or subsequent to the date of such mortgage, deed of trust or ground lease, or the date of recording thereof. Tenant agrees to execute any documents required to effect such subordination or to make this Lease prior to the lien of any mortgage, deed of trust or ground lease, as the case may be, and failing to do so within ten(10) calendar days after written demand from Landlord does hereby make, constitute and irrevocably appoint Landlord as Tenant's attorney in fact and in Tenant's name, place and stead to do so. 13. SURRENDER. On the last day of the term hereof, or on any sooner termination, Tenant shall surrender the Premises to Landlord in good condition, broom clean, subject to ordinary wear and tear upon the Premises which change in condition shall be accepted by Landlord. Tenant shall repair any damage to the Premises occasioned by its use thereof, or by the removal of Tenant's trade fixtures, furnishing and equipment which repair shall include the patching and filling of holes and repair of structural damage. Tenant shall remove all of its personal property and fixtures on the Premises prior to the expiration of the term of this Lease and if required by Landlord pursuant to Article 10(a) above, any alterations, improvements or additions made by Tenant to the Premises. If Tenant fails to surrender the Premises to Landlord on the expiration of the Lease as required by this paragraph, Tenant shall defend, indemnify and hold Landlord harmless from all damages resulting from Tenant's failure to surrender the Premises. 14. HOLDING OVER. If the Tenant, with the Landlord's consent, remains in possession of the Premises after the expiration or termination of the term of this Lease, such possession by Tenant shall be deemed to be a tenancy from month-to-month at a rental in the amount equal to the last monthly rental Page 4 of 7 S:\Council Actions\Council Actions Jul-Sep 2007\Lease with EDA 201 N E St ste 103 and half of 106 doc plus all other charges payable hereunder, upon all the provisions of this Lease applicable to month-to-month tenancy. 15. BINDING ON SUCCESSORS AND ASSIGNS. The terms, conditions and covenants of this Lease shall be binding upon and shall inure to the benefit of each of the parties hereto, their heirs, personal representatives, successors and assigns. 16. NOTICES. Whenever under this Lease, a provision is made for any demand, notice or declaration of any kind, it shall be in writing and served either personally or sent by registered or certified United States mail, postage prepaid, addressed at the addresses set forth below: TO LANDLORD: Redevelopment Agency of the City of San Bernardino Attention: Maggie Pacheco, Executive Director 201 North"E" Street, Suite 301 San Bernardino, California 92401 TO TENANT: City of San Bernardino Parks and Recreation Department Attention: Kevin Hawkins, Director 201 North"E" Street, Suite 103 San Bernardino, California 92401 Such notices shall be deemed to be received within forty-eight (48) hours from the time of mailing, if mailed as provided for in this paragraph or upon receipt if served personally upon the other party. 17. LANDLORD'S RIGHT TO INSPECTION. Landlord and Landlord's agents shall have the right to enter the Premises at any reasonable time for the purpose of inspecting same, showing the same to prospective purchasers or lenders, and making such alteration, repairs, improvements or additions to the Premises or to the building of which the Premises are a part as Landlord may deem necessary or desirable. Landlord may, at any time, place on or about the Premises, any ordinary "For Sale" signs and Landlord may, at any time during the term of this Lease, place on or about the Premises, any ordinary "For Sale or Lease" signs, all without rebate of rent or liability to Tenant. 18. CHOICE OF LAW. This Lease shall be governed by the laws of the State of California. 19. LANDLORD'S LIABILITY. The term "Landlord" as used in this Lease shall mean only the owner or owners at the time in question of the fee title or Lessee's interest in a ground lease of the Premises, and in the event of any transfer of such title or interest, Landlord herein names such successor in interest, and in case of any subsequent transfers to the then successor in interest, as the real party in interest to Page 5 of 7 SACouncil Actions\Council Actions Jul-Sep 2007\Lease with EDA 201 N E St ste 103 and half of 106.doc this Lease and Landlord shall be relieved from and after the date of such transfer of all liability in respect to Landlord's obligations thereafter to be performed. The obligations contained in this Lease to be performed by Landlord shall be binding upon the Landlord's successors and assigns, only during their respective period of ownership. 20. INCORPORATION OF PRIOR AGREEMENTS. This Lease contains all agreements of the parties with respect to any matter mentioned herein. No prior agreement or understanding pertaining to any such matter shall be effective. This Lease may be modified only in writing, and signed by the parties in interest at the time of such modification. The parties hereto have executed this Lease on the date first above written. LANDLORD: Redevelopment Agency of the City of San Bernardino By: Maggie Pacheco, Executive Director Approved as to Form and Legal Content: By: Agency Counsel TENANT: City of San Bernardino By: Fred Wilson, City Manager Approved as to Form: By: James F. Penman, City Attorney Page 6 of 7 S\Council Actions\Council Actions Jul-Sep 2007\Lease with EDA 201 N E St sic 103 and half of 106.doc EXHIBIT "A" FYJ FE VVviv 4 �r t I! � I \ t c v ,v t v v r i i \ \X •, ; AREA PROPOSED TO BE LEASED BY THE PARKS RECREATION AND COMM. SERVICES DEPT. Page 7 of 7 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO COMMERCIAL LEASE (201 North "E" Street) 1. PARTIES. This Commercial Lease is made and entered into this 17th- day of September 2007 (this "Lease"), by and between the Redevelopment Agency of the City of San Bernardino, a public body, corporate and politic (hereinafter referred to as "Landlord") and the City of San Bernardino ("City"), Parks and Recreation Department (hereinafter referred to as "Tenant"). 2. PREMISES. Landlord hereby leases to Tenant and Tenant hereby leases from Landlord, on the terms and conditions hereafter set forth that certain real property and the building and other improvements located thereon situated in the City, County of San Bernardino, State of California, commonly known as 201A North "E" Street, Suite 103 and the east half of Suite 106, as described in Exhibit"A" (see attached) (said real property is hereinafter called the "Premises"). 3. TERM. The term of this Lease shall be month-to-month, commencing on October 1, 2007, and shall expire and terminate as of the last calendar day of said month. This Lease may remain in full force and effect from and after said stated termination date and month-to-month thereafter until either party shall deliver to the other party a termination notice at least thirty (30) days prior to the termination date to be specified in such notice. Any such termination shall be effective as of the last calendar day of a month provided that the requisite notice has been duly given by the party then seeking to terminate this Lease. 4. RENT. Tenant shall pay Landlord as rent for the Premises the following sums per month, in advance on the first day of each calendar month during the term of this Lease: Tenant will be responsible for all costs associated with Tenant Improvements, phone, computer and communication installations within the Premises as leased pursuant to this Lease. Tenant shall pay Landlord monthly rent in the amount of Three Thousand Three Hundred Dollars ($3,300) for the Premises. Rent for any period during the term of this Lease which is for less than one (1) month, shall be a pro rata portion of the monthly installment. Rent shall be payable without notice or demand and without any deduction, off-set or abatement in lawful money of the United States to the Landlord at the address stated herein for notices or to such other persons or such other places as the Landlord may designate to Tenant in writing. Landlord reserves the right to increase the rent at anytime after the initial term of this Lease upon the deliver of not less than thirty (30) calendar days' notice to Tenant. In the event Tenant should refuse to pay such increased rent or fail to pay the required increased rental amount when due and payable, such action of the Tenant shall be deemed to be an automatic termination of this Lease by Tenant. Page 1 of 7 S:\Council Actions\Council Actions Jul-Sep 2007V-ease with EDA 201 N E St ste 103 and half of 106.doc In the event Tenant holdover its tenancy after the period specified in any notice of termination duly delivered from Landlord to Tenant, Tenant shall be responsible for payment of rent for such holdover period equal to two (2)times the monthly rent then in effect immediately prior to such commencement of a holdover status under this Lease. 5. USE. Tenant shall use the Premises only for the general offices of the City, Parks and Recreation Department, and for no other purpose without the Landlord's prior written consent. Tenant shall not do, bring or keep anything in or about the Premises that will cause a cancellation of any insurance covering the Premises or the building in which the Premises are located. If the rate of any insurance carried by the Landlord is increased as result of Tenant's use of the Premises, Tenant shall pay to Landlord within ten (10) calendar days after written demand from Landlord, the amount of any such increase. Tenant shall comply with all laws concerning the Premises or Tenant's use of the Premises, including, without limitation, the obligation at Tenant's cost to alter, maintain or restore the Premises in compliance and conformity with all laws relating to the condition, use or occupancy of the Premises by Tenant during the term of this Lease. Tenant shall not use or permit the use of the Premises in any manner that will tend to cause waste or a nuisance or which may unreasonably disturb any other tenant or user of the Premises. Tenant hereby accepts the Premises in their condition existing as of the date that Tenant possesses the Premises. 6. UTILITIES. Landlord will pay for all water, gas, electricity, air conditioning, refuse and five (5) days per week janitorial service. Tenant shall pay for telephone, internet and other utility services supplied to the Premises together with any taxes thereon and for all connection charges. 7. MAINTENANCE AND REPAIRS. (a) Landlord's Obligations. Except as provided in Article 12, and except for damage caused by any negligent or intentional act or omission of Tenant, Tenant's agents, employees or invitees, Landlord, as its sole cost and expense, shall provide janitorial service, keep in good condition and repair, the foundations, exterior walls and exterior roof of the Premises. Landlord shall also maintain the unexposed electrical, plumbing and sewage systems including, without limitation, those improvements that are a part of the Premises or of which the Premises are a part. The Landlord shall also maintain the heating, ventilating and air conditioning systems servicing the Premises. 8. INSURANCE: INDEMNITY. (a) Hold Harmless. Tenant shall defend, indemnify and hold Landlord harmless from and against any and all claims arising from Tenant's use or occupancy of the Premises or from the conduct of its Page 2 of 7 S,\Council Actions\Council Actions Jul-Sep 2007\Lease with EDA 201 N E St ste 103 and half of 106.doc business or from any activity, work or things which may be permitted or suffered by Tenant in or about the premises, including all damage, costs, attorney's fees, expenses and liabilities incurred in the defense of any claim or action or proceeding arising therefrom. Except for Landlord's willful or grossly negligent conduct, Tenant hereby assumes all risk of damage to property or injury to persons in or about the Premises from any cause, and Tenant hereby waives all claims in respect thereof against the Landlord. (b) Exemption of Landlord from Liability. Except for Landlord's willful or grossly negligent conduct, Tenant hereby agrees that Landlord shall not be liable for any injury to Tenant's business or loss of income therefrom or for damage to the goods, wares, merchandise or other property of Tenant, Tenant's employees, invitees, customers or any other person in or about the premises; nor shall Landlord be liable for injury to the person of Tenant's employees, agents, contractors or invitees, whether such damage or injury is caused by or results from fire, steam, electricity, gas, water or rain, or from the breakage, leakage obstruction or other defects of pipes, sprinklers, wires, appliance, plumbing, air conditioning or lighting fixtures, or from any other cause, whether such damage results from conditions arising upon the Premises or upon other portions of the building in which the Premises are a part, or from any other sources or places. Landlord shall not be liable to Tenant for any damages arising from any act or neglect of any other tenant, if any, of the building in which the Premises are located. 9. ASSIGNMENT AND SUBLETTING. Tenant shall not voluntarily or by operation of law, assign, transfer, sublet, mortgage or otherwise transfer or encumber all or any part of Tenant's interest in this Lease or in the Premises without Landlord's prior written consent, which consent may be withheld at the sole and absolute discretion of the Landlord. Any attempted assignment, transfer, mortgage, encumbrance or subletting without such consent shall be void and shall constitute a breach of this Lease. Regardless of Landlord's consent, no subletting or assignment shall release Tenant of Tenant's obligation to pay the rent and to perform all other obligations to be performed by Tenant hereunder for the term of this Lease. The acceptance of rent by Landlord from any other person shall not be deemed a waiver by Landlord of any provision hereof. Consent to one (1) assignment or subletting shall not be deemed consent to any subsequent assignment or subletting. 10. DEFAULT. (a) Events of Default. The occurrence of any one (1) or more of the following events shall constitute a default and breach of this Lease by Tenant: (1) Failure to pay rent when due, if the failure continues for five (5) business days after written notice has been given to Tenant. Page 3 of 7 SACouncil Actions\Council Actions Jul-Sep 2007\L.ease with EDA 201 N E St ste 103 and half of 106.doc (2) Abandonment and vacation of the Premises (failure to occupy the Premises for fourteen (14) consecutive calendar days shall be deemed an abandonment and vacation). 11. SIGNS. Tenant shall not have the right to place, construct or maintain any sign, advertisement, awning, banner, or other exterior decorations on the building or other improvements that are a part of the Premises without Landlord's prior written consent, which consent may be withheld by Landlord, at its sole and absolute discretion. 12. SUBORDINATION. This Lease, at Landlord's sole option and absolute discretion, may be subordinated to any ground lease, mortgage, deed of trust or any other hypothecation for security now or hereafter placed upon the real property of which the Premises are a part and to any and all advances made on the security thereof and to all renewal, modifications and extensions thereof. Notwithstanding any such subordination, Tenant's right to quiet possession of the Premises shall not be disturbed if Tenant is not in default and so long as Tenant shall pay the rent and observe and perform all the other provisions of this Lease, unless this Lease is otherwise terminated pursuant to its terms. If any mortgages, trustee or ground lessor shall elect to have this Lease prior to the lien of its mortgage or deed of trust or ground lease, and shall give written notice thereof to Tenant, this Lease shall be deemed prior to such mortgage, deed of trust or ground lease, whether this Lease is dated prior to or subsequent to the date of such mortgage, deed of trust or ground lease, or the date of recording thereof. Tenant agrees to execute any documents required to effect such subordination or to make this Lease prior to the lien of any mortgage, deed of trust or ground lease, as the case may be, and failing to do so within ten (10) calendar days after written demand from Landlord does hereby make, constitute and irrevocably appoint Landlord as Tenant's attorney in fact and in Tenant's name, place and stead to do so. 13. SURRENDER. On the last day of the term hereof, or on any sooner termination, Tenant shall surrender the Premises to Landlord in good condition, broom clean, subject to ordinary wear and tear upon the Premises which change in condition shall be accepted by Landlord. Tenant shall repair any damage to the Premises occasioned by its use thereof, or by the removal of Tenant's trade fixtures, furnishing and equipment which repair shall include the patching and filling of holes and repair of structural damage. Tenant shall remove all of its personal property and fixtures on the Premises prior to the expiration of the term of this Lease and if required by Landlord pursuant to Article 10(a) above, any alterations, improvements or additions made by Tenant to the Premises. If Tenant fails to surrender the Premises to Landlord on the expiration of the Lease as required by this paragraph, Tenant shall defend, indemnify and hold Landlord harmless from all damages resulting from Tenant's failure to surrender the Premises. 14. HOLDING OVER. If the Tenant, with the Landlord's consent, remains in possession of the Premises after the expiration or termination of the term of this Lease, such possession by Tenant shall be deemed to be a tenancy from month-to-month at a rental in the amount equal to the last monthly rental Page 4 of 7 S:\Council Actions\Council Actions Jul-Sep 2007\Lease with EDA 201 N E St ste 103 and half of 106.doc plus all other charges payable hereunder, upon all the provisions of this Lease applicable to month-to-month tenancy. 15. BINDING ON SUCCESSORS AND ASSIGNS. The terms, conditions and covenants of this Lease shall be binding upon and shall inure to the benefit of each of the parties hereto, their heirs, personal representatives, successors and assigns. 16. NOTICES. Whenever under this Lease, a provision is made for any demand, notice or declaration of any kind, it shall be in writing and served either personally or sent by registered or certified United States mail, postage prepaid, addressed at the addresses set forth below: TO LANDLORD: Redevelopment Agency of the City of San Bernardino Attention: Maggie Pacheco, Executive Director 201 North"E" Street, Suite 301 San Bernardino, California 92401 TO TENANT: City of San Bernardino Parks and Recreation Department Attention: Kevin Hawkins, Director 201 North"E" Street, Suite 103 San Bernardino, California 92401 Such notices shall be deemed to be received within forty-eight (48) hours from the time of mailing, if mailed as provided for in this paragraph or upon receipt if served personally upon the other party. 17. LANDLORD'S RIGHT TO INSPECTION. Landlord and Landlord's agents shall have the right to enter the Premises at any reasonable time for the purpose of inspecting same, showing the same to prospective purchasers or lenders, and making such alteration, repairs, improvements or additions to the Premises or to the building of which the Premises are a part as Landlord may deem necessary or desirable. Landlord may, at any time, place on or about the Premises, any ordinary "For Sale" signs and Landlord may, at any time during the term of this Lease, place on or about the Premises, any ordinary"For Sale or Lease" signs, all without rebate of rent or liability to Tenant. 18. CHOICE OF LAW. This Lease shall be governed by the laws of the State of California. 19. LANDLORD'S LIABILITY. The term "Landlord" as used in this Lease shall mean only the owner or owners at the time in question of the fee title or Lessee's interest in a ground lease of the Premises, and in the event of any transfer of such title or interest, Landlord herein names such successor in interest, and in case of any subsequent transfers to the then successor in interest, as the real party in interest to Page 5 of 7 S:\Council Actions\Council Actions Jul-Sep 2007\Lease with EDA 201 N E St ste 103 and half of 106,doe this Lease and Landlord shall be relieved from and after the date of such transfer of all liability in respect to Landlord's obligations thereafter to be performed. The obligations contained in this Lease to be performed by Landlord shall be binding upon the Landlord's successors and assigns, only during their respective period of ownership. 20. INCORPORATION OF PRIOR AGREEMENTS. This Lease contains all agreements of the parties with respect to any matter mentioned herein. No prior agreement or understanding pertaining to any such matter shall be effective. This Lease may be modified only in writing, and signed by the parties in interest at the time of such modification. The parties hereto have executed this Lease on the date first above written. LANDLORD: Redevelopment Agency of the City of San Bernardino By: Maggie Pacheco, Executive Director Approved as to Form and Legal Content: By: Agency Counsel TENANT: City of San Bernardino By: Fred Wilson, City Manager Approved as to Form: By: James F. Penman, City Attorney Page 6 of 7 S:\Council Actions\Council Actions Jul-Sep 2007\.ease with EDA 201 N E St ste 103 and half of 106 doe EXHIBIT "A" f �CJ tt1111LLL UUU AREA PROPOSED TO BE f , LEASED BY THE PARKS \` RECREATION AND COMM. SERVICES DEPT. Page 7 of 7