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Home My WebLink About15-Public Works L LLt nu. 1,.J.VU-VJ.L CITY OF SAN BERNJODINO - REQUEST FM COUNCIL ACTION Date: Novpmber 29, 1988 Resolution authorizing and directing execution of Second Amendment to Lease and Conspnt to assignment for property on Northeast coroner of Waterlllun and G i 1 bed S t ,-eet. From: ROGER G. HARDGRAVE, Director ~O"'\'" off. RE.C'O. -.. ,., n. Subject: Publ ie Wo,-ks /Enginee,-iug " n" ~: QS Isea Ote -0 I.. ,,.,..~... ~: Synopsis of Previous Council action: 06-21-76 --- Resolution No. 12/'>'<7 was adopted iluthorizing the "xecution of as Lease Agreement. 12-22-81> --- Resolution No. 86-521 was adopted. "u\horizing 11Ip execution 01 First Amendment to Lease. Recommended motion: - Adopt Rpso I 'Iii nn ;/ / / ___ _~~~._'L-_~ / r. / ~-~_. ,~~ (/.-- Signature cc: Jim Robhitls, Acting Cit~' Adlllinistrntor _Jilm~s PPfllll~rl, Cit~. Attor-ney Phone: ))14 Le'; Fogassv Contact person:___ - Supporting data attached: Staff Repor-t, Hesolution Ward: FUNDING REQUIREMENTS: A NONE mount:_ ~/A Source: (AccL No.) ________________ (Acct. Description) _~ Finance: CAuncil Notes: '- 75-0262 Agenda Item No. /s CITY OF SAN BERNaDINO - REQUEST:~OI COUNCIL ACTION STAFF REPORT ..- "- , On J\mC' '21, 1976, Hesulution No. 12467 was ,1dopted, authorizing the eXL'cutioll of lease agreement between the City, as Lessor, illld Albert M. Gallo. as Lessee, for old fil'e stntion building located at th" ~orlhpilst cor-nero 01 liaterman Avenue Gi 11)/.'r1. Sh'eel. a the and Thut lease was for a term of ten years. Pur~llant to said dgreel1ll'nt, lessee has the option 01 renewing the lease for" an addi I i Olla I thr"ec five yell! terms. Lessee has exer'cised hi s option fm" the 1 irst r'enewa 1, and Reso I u ti on No. 86-521. adopted on December 22, 1986, authorized lhe pxecution a First Amendment 10 Lease, extending the lease for an additional five years. Two additional renewal terms of fivp years pilch, remain on this lease. The current r'cnewrtl term expires on June 30, 1991, thus, Lessee has lhe option at leasing the premis"s unti 1 the year 20tH. Th.. rental payments are set forth in the original lease dgr"Cemenl. Th" currpnl rilte is S',OO.OO a month, wi.lh each rellPwal increasing the payment hy S'iIJ.OO per month. The lessee reccntly contacted this department, and advispd us of his intention to sell his flori sl business, and request"d thaI an assignment 01 the lease be granted. In r:onsideral ion of the Cit y gr"ant. ing approva l for the assignment, tlIe lessee submitted a propus," I 10f" an amendm<,nt to the I ease, short.ening the 1 case to five years with no renewal options, and the increase of rental payment.s to Sl,OOO.uO per month. This depar'tmenl hilS obtained a li.n<1ncial statement from t.he proposed <lssignee, a copy of which is allached heret.o. - Hasen on and tha t hut il150 thaI I lIe Amendment the ftlet. t.hat the Cllrrent lease enculllber-s the pro pert) f or another 13 years the assignmen1 oJ Lhe lease not oIlly shortens this encumbrance to 5 years, slJIJst antially increases the renta 1. pdyments for the prcnlises, we r'ecommend iot I dcbed r'esolution , authorizing and directing the execut.ion of a Second tC) LPdSP, and Conspnt to Assignment, be approved. "-- 11-'-9-88 75-0264 OPERSONAL FINANCIAL ST A TEME~ IDO NOT USE F'OR BUSJNESS) c 1.801. (1('t. '?? 19 RR __ at II...... _. Yonsuk Son 11213 D. Oxford Employed by TOlAn1 P. <ihnn!1~ T.; q1Jt"'l~ ~JJ N...o' .&9.~Spou.. Year. 1 -- Dr. . Redl1'1nds. CA PO.W.OII HIUln Tn U "~I ,od IAoa n.- 1 y.... Previoua a.pIoyor owner 0 f Se~ '1"",,,,..,,,-,, rr1c'l- on.. UDdenICM4. for tbe IMIf'PMI: of DI'OCUI'IDC &ad ...bllllhln. credit Irani. time to time with you and to Induce you to "l'IIIlt the uadenlped to be- .... lDdebted to JOU on DOt... en4onernenta. paraDteu. overclrath or atherwlM. tumiahe. the followtna: (or in lieu thereof the attached) whleh I. tile 1D08t receDe .tat....nt prepared by or for me undenlcned. ... belll&' . full. true and correct atatement of the ftnanclaJ condition of tbe uRcleralenecl on tbe elate ladleated. .... ...... to notl,,. )fOU tallnedla'ely of the extent and character of any matert&) chanle In said ftn&llclaJ cODdIUaD. and a&.o....... that If tile ...........! or any endoner or auanntor of any of the abU..tlona of the under_laned. at any time faU. in bu.ln... or become. (n80lvent. or com. 11I.I".. act of .......PkY. or diu, 01' If. wrtt of attachment, pmlallment, execution or other le.a.1 proce.. be luued a.alnat property of the undent...... 01' If &IIJ'.~ lilt for taze. _Iut the ununlp", other than taxea on real property, ia made by the tederal or state pvernme.t or any department . tIIenof. or If ..p of t.be repreeentaUolq made below prove to be untrue. or It the undeniped tail. to notify you of any matertal cbanp .. above acned. or It lIUCb ~ OCCUl'll. Gr If tile bualr.=s. cr L"I~ Iftt~l'ut the,...in, of the un(ller.llmed la eold. then and In such ca.., all of t.he obllptlon. of the under. ...... to 70U or held by you .u.u IIDlllediately be due and payaole, without de.m&ftd or notice. Thl. statement snail be eon.trued by you to be & contlnuln; atateateat of tbe eondltloa of tlte uDderaJped.. aDela new and ort~nal atatement of all ....t. a.nd lIabUltle. upon euh and. eve..,. traa.aaeUon ID. and by wblcb tbII UDdrtniped.......ter becomH ladebted to you, untU tbe und.maned adVisee In wrtUnc to the contrary ASSETS DOl.LARS cent. LIABILITIES DOLLARS c_ta c.... I.. . o. nK 0 AIller~ca LZ uuu Not.. payabl. B ot I_hI (Branch) I ea";n n"""'''~~ 1 "'''Vi ~~o lnn nnn Not.. payable (Otber.vh'. n_. (Oth.r) Account. Rec.i.eb1e-aood Accoynt. payable Dept. stores 60c Stoe.... .11I ""'IIds...I. at rnle, Ta... payable N~.. R_....W"COOd Grand terrace 10 000 Contract. payabl. ITo who.) ....'_. <; !nnll ~ Irr..d.r Velu. Lil. In.unntc. Contracta payabl. ...... nl,," ' I< <; Pro "" '1<'<; 1 <; 1(1(1(1 ITo wh_' R.al Eatat. ind.bt.da.aa ISch.dul. A) tV..,....ak., (y...........) """,i "",n",,_ ~ A(11) 000 I Oth.r L.iabillti.. (d..cri.b.) ".... Eatot. (Seb.cAul. A) Other As..ta (tMIIHrib.) \.,;UI;Hlit'.L-I"O..Ld,.i. Autos Q OO() .f',,_~' +",.." 1<; O()O 1. I. 2. z. ".111 rl ",i 1 'Ie'" 40 000 ,. J. .: .. TOTAL LIABILITIES q 60r ,. NET WORTH 1 00';1 400 TOTAL ASSETS .$ 1,017 000 I TOTAL I "1"", 10 000 R.al Eatat. pCly_.t (.) selory (wU. .r huait-dl ".nt h <;1) c lecuriU.. Inco.. 1-<; ()()() Inc..... To... Rental. In.urcmc. Pr..iu.. ., 1 A(' Oth.r (d..crib., PropeI'ty T.... 1. Oth.r (d..crib.-inc1 ud. in.t.L.ent pay_ent. 2. oth.r than r.al ..tat.1 J. 1. car navments <; 2?r .. z. s. ,. TOTAL INCOME 45 000 TOT AL EXPENDITURES llJ. anc - ............ L.eSS-TOTAL. EXPENDITURES NET CA.SH INCOME 30 095 leacluab. .1 orcliftary U.tnt ..p.n...) ANNUAL INCOME and ANNUAL EXPENDITURES (E.c1udinv Ordinary lirinv ..,.....) f't1fANaAL. STATEMENT _ Individual - WOLCOTTS Yo.. 2000 ., '"-~ '8 ,-"'r-~ ' - -~ '-' ... .... AD.... - . . _la jalat~, y~~ '-' _01_"-7 Huan In ..... J'OU 111M L 1 .at c... · ...._.L - -,-... 4WIt, no u _. ..... ..... Ift_...- .' ...-........___ladl_, no JI_.llI-t_ ~""''''_ty Do ,.. ..... '-7 .... "'_1 T 1 ocmnecti.ana? no D _. "... cletail. ,.. _ _ _... ~1a -">at "",? no """ .........? - "'" -....... ~.. yes ..... . debt? no _""'......wID? ~of.. ..I ta , one SCHEDULE A-REAL ESTATE ~... typa Uti. EaU..t.. -'1 To_~ 01........ I 1n_0I Valu. Owlnv ",$~g~~^; b\9r~~o . . Roo nnn n ~DULE B-STOCICS AND BONDS --.-..- -....... eun..t _ot _Val... _01""" ...Uol'" .. twt.ed . . U ...."--1. ....18..... for ~ L i,M. A eUor Sch.lIWe a l1et an ..... ..... ... .... INSURANCE L.II.~ . NmDaof t: . T .J -"..., .. ~1_ """"'''1 PuIoUc UabUhy - YO. 0 IlO 0 ,... . . -.. peraana1 UaWlJ.tr-ya [] ...0 ~~-,... 0 _0 1TA'IDIDlT OF BANK 0FF1CER: luof. _ our NOOI'da ......., thl. FbuInc:lal ,...1 .t ia occurate .... tn.. 'Dlo loro9oInI_It. la copy of) the Cllialnal,oI""... by tho "'_, In tho _I Woo oIlhl. bank, Tho ..-...... __ _ the ..... _ II .. In U.. th_, tho _ at_I, aatho _ _ loal'" ~ __. _ pdnlad ... Milia.... a full. tn.. ... _ __I" tho -.0 II... 01 tho _...... aa 01 tho data tndIcatad. --.. " __, Cooh1.. ...._ :',:-; -.2." 1r;'J 1 Data 01...... a_ r- '-' 1 2 3 -., ,"'-..., ......~) '- RESOLUTION NO. A RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A SECOND AMENDMENT TO LEASE AND CONSENT TO ASSIGNMENT RELATIVE TO A LEASE WITII ALBERT M. GALLO AND KATIlRYN C. GALLO. 4 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 8 9 10 11 12 13 14 -- 15 '-- 16 17 18 19 20 21 22 23 24 25 26 27 28 5 The Mayor of the City of San Bernardino is hereby SECTION 1. 6 authorized and directed to execute on behalf of said City, a Second 7 Amendment to Lease with Albert M. Gallo and Kathryn C. Gallo for the City owned property located on the Northeast corner of Waterman Avenue and Gilbert Street, and a Consent to Assignment. copies of which are attached hereto, marked Exhibit "A" and Exhibit "B" respectively, and incorporated herein by reference as fully as though set forth at length. I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and Common Council of the City of San Bernardino at a _~________ meeting thereof held on the day of ~ ____~_________, 19___~_, by the following vote, to-wit: AYES: Council Members -~---------~--~~_._------------------- NAYS: --~.__._,---------------------------_.__._--_._-----------.--.----- ABSENT: ----~---------~cH:yc I eri<----~---- The foregoing resolution is hereby approved this ___ day of . 19 ----------------------- Evlyn Wilcox. Mayor City of San Bernardino Approved as to form and legal content: 11 '"10 co '-' SECOND AMENDMENT TO LEASE ,- - (Fire Station - Waterman and Gilbert) THIS SECOND AMENDMENT TO LEASE, effective January 1, 1989, is entered into between the CITY OF SAN BERNARDINO, a municipal corporation, hereinafter called "Lessor", and ALBERT M. GALLO and KATHRYN C. GALLO, hereinafter called "Lessee". The parties agree as follows: 1. Recitals. WHEREAS: A. On July 7, 1975, Lessor and Lessee entered into a ten-year lease for premises located at 1505 North Waterman Avenue, San Bernardino ("premises"). B. Pursuant to the terms of the lease, Lessee had ~ the option of renewing the lease for an additional five-year period for a total rent of $400.00 per month and said option was exercised by Lessee, as evidenced by First Amendment to Lease, effective July 1, 1986. C. Lessee currently has the option of two additional renewals for a period of five years each, upon fulfilling each renewal term. Subsequent rents are to be $450.00 per month and $500.00 per month, respectively, during each five- year period. D. Pursuant to paragraph 19 of s"aid Lease Agreement, Lessee shall not assign this lease or sublet the said premises or any part thereof without obtaining the prior written consent of the Lessor. "'- JFW:ss December 8, 1988 1 EXHIBIT "A" ",." v ~ ,~ E. Lessee wishes to assign the Lease Agreement. ,- '- THEREFORE, it is agreed that the Lease Agreement shall be amended as follows: 2. Insurance. Paragraph 16 of said Lease Agreement is amended to read as follows: "16. Insurance. Lessee agrees to procure and maintain in force during the term of this lease and any extension thereof, at its expense, a policy or policies of insurance against loss or damage to he leased premises, and appurtenances and permanent equipment, resulting from fire, lightning, vandalism, malicious mischief, and such perils ordinarily defined as "extended coverage" and other perils in a minimum amount of $100,000. Lessee agrees to procure and maintain in force during the term of this lease and any extension thereof, at its expense, public - liability and property damage insurance in companies and through brokers approved by lessor, adequate to protect against liability for damage claims through public use of or arising out of accidents occurring in or around the leased premises, and property damage in a minimum amount of $500,000 combined single limit. Such insurance policies shall name the Lessor, its officers, agents and employees as additional insureds. Lessor shall furnish Lessee, concurrently with the execution hereof, with satisfactory evidence of the insurance required, and evidence that each carrier is required to give City at least ten (10) days' prior notice of the cancellation or reduction in coverage of any pOlicy during the effective period of this lease. Lessee agrees that, if such insurance pOlicies are not kept in "'- JFW:sS December 8, 1988 2 ,,,,,"""'. ~ ..'.. -- '-' ..,-. ,forqe during the entire term of this lease and any extension "'- thereof, Lessor may 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 premiums are paid." 3 . Amendments. Paragraph 19 of said Lease Agreement is amended to read: "19. Assignment. Lessee shall not assign this lease or sublet said premises or any part thereof, without obtaining prior written consent of the Lessor. The parties agree that in consideration of an agreement to the assignment of said Lease by the -, Lessor, the terms of the lease shall be first amended as follows: 1. The term of the Lease shall be for a period of 60-months commencing upon the execution of an assignment of said lease. 2. Rent for the 60-month Lease term shall be for the amount of $60,000.00, payable at a rate of $1,000.00 per month, commencing on the day of the execution of said assignment, and payable by the first day of each month thereafter. 3. Lessee, or any assignee, shall have no options to extend the Lease term beyond '- JFW:ss December 8, 1988 3 ,;....... ""' '- -' the 60-month period, but rather the terms of - '-' any tenancy beyond the 60-month period shall be negotiated by the parties. This provision does not require the Lessor to enter into any further Lease Agreements following the expiration of this agreement. 4. If, after a completed assignment of this lease, Lessee recovers possession of the florist business from the Assignee, then this Lease shall continue as amended. By such repossession, Lessee shall be deemed to have taken a reassignment of the Lease under the terms as amended by this Second Amendment to the Lease. Nothing contained herein shall be '-' construed as preventing the Lessor from discontinuing this Lease for breach of the covenant to make timely payment of the rental fees, or for breach of any other covenant contained in the Lease, without prior notice to Lessee." 5. If this lease is not assigned on or before December 31, 1989, the provisions of this Paragraph 3 of the Second Amendment to lease shall be of no further force and effect and the applicable provisions shall be those found in the Lease and the First Amendment to Lease. "- JFW:ss December 8, 1988 4 f- -'.. ~ "'." 4. Other Provisions. -- ~ herein are hereby deemed to be in full force and effect as to any All amendments as set forth assignee of said Lease and are a part of any Lease assigned by the present Lessee. All other terms and conditions of the First Amended Lease shall remain in full force and effect, except for those conditions and terms superseded by this Second Amendment. IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment to Lease, this ____________day of , 19 "Lessor" CITY OF SAN BERNARDINO - "- ATTEST: BY: Evlyn Wilcox, Mayor City of San Bernardino City Clerk "Lessee" Albert M. Gallo Kathryn C. Gallo Approved as to form and legal content: ~Attorn.Y '"- JFW:ss December 8, 1988 5 - - - ...,"' " "-" ,",,1 ;.,.-. ...... ASSIGNMENT O~ INTEREST IN LEASE AGREEMENT (Fire Station --- Waterman and Gilbert) Albert M. Gallo and Kathryn C. Gallo, being the Lessees under that certain Lease Agreement entered into on the 7th day of July, 1976, and all amendments thereto, between Lessee and the City of San Bernardino as Lessor, do hereby assign, set over and transfer unto Yonsuk Son, all right, title and interest which they have or may claim to have in and under by virtue of said Lease Agreement. Yonsuk Son shall hereafter be the sole Lessee. Yonsuk Son, by acceptance of this assignment, does agree to hold harmless Albert M. Gallo and Kathryn C. Gallo from all further responsibility and liability under said Lease Agreement. - This Assignment is subject to approval by the Mayor and Common Council of the City of San Bernardino, and this assignment is not valid until consent to this agreement is obtained in writing from the City of San Bernardino. IN WITNESS WHEREOF, the parties have executed this Assignment this day of _________________________, 19 ACCEPTED: Albert M. Gallo, Assignor Kathryn C. Gallo, Assignor Yonsuk Son, Assignee - JFW:ss November 29, 1988 1 EXtiUlT "8" --- - - --- ....~..._" '-' '-i - CONSENT TO ASSIGNMENT BY CITY OF SAN BERNARDINO "-' (Fire Station --- Waterman and Gilbert) PURSUANT TO A RESOLUTION by the City of San Bernardino heretofore duly adopted, the City of San Bernardino hereby consents to the Assignment and transfer Of all right, title and interest as set forth above, this day of 19 CITY OF SAN BERNARDINO ATTEST: Evlyn Wilcox, Mayor City of San Bernardino City Clerk Approved as to form and legal content: - m~' ~ ' 'ty Atto)ey BY: <:# (... / -- ''"- JFW:ss November 29, 1988 2