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HomeMy WebLinkAbout08.L- Public Works RESOLUTION (ID # 1884) DOC ID: 1884 CITY OF SAN BERNARDINO—REQUEST FOR COUNCIL ACTION Lease From: Jim Smith M/CC Meeting Date: 07/16/2012 Prepared by: Ryan Sandoval, (909) 384-5140 Dept: Public Works Ward(s): 1 Subject: Resolution of the Mayor and Common Council of the City of San Bernardino Terminating the Lease between the City of San Bernardino and Easter Seals Southern California, Inc., for City- Owned Property located at 241 E. 9th Street, San Bernardino, CA. Financial Impact: A source of funding will need to be identified to pay for the up-front costs if the option to sell is chosen. These costs are anticipated not to exceed$7,500 including title report, appraisal and advertising costs. These costs could potentially be recovered from the sale proceeds. Motion: Adopt Resolution; and authorize the Director of Public Works to proceed with the sale of City property located at 241 E. Stn Street, and also known as Assessor's Parcel Numbers 0140-241-45 & 54. Synopsis of Previous Council Action: 06/18/1963 Resolution No. 6809 - Authorizing the execution of a 50-year lease with the San Bernardino County Society for Crippled Children and Adults, Inc. (Easter Seals), from 06/20/1963 through 06/20/2013. 07/21/2008 Resolution No. 2008-291 was adopted, terminating the current lease with San Bernardino County Society for Crippled Children and Adults, Inc., and authorizing the execution of a new 50-year lease with Easter Seals Southern California. Background: On June 18, 1963, a lease was executed between the City of San Bernardino and the San Bernardino County Society for Crippled Children and Adults, Inc., now known as Easter Seals Southern California (Easter Seals) for a portion of City-owned parcels located on the south side of 90' Street, west of Waterman Avenue (see attached maps). The lease was for the land only (approx. 83,952 sq. ft.) with the lessee responsible for the construction of the building. The original lease term was for 50 years with a rent payment of$1 per year. The lease was to expire June 20,2013, with the option to renew and extend the lease for another 50-year term beyond the expiration date. Packet Pg. 977 ilndated- 7/12/2012 by Genmeann"Giei"Hanna Pawc 1 1884 In 2008, Mark Whitley, President of Easter Seals, requested that the lease term be extended for an additional 50 years from the expiration date of the original lease. After review, staff determined that instead of an amendment being prepared, a new lease was needed to bring the Lease Agreement to the current standards and requirements. On July 21, 2008, Resolution No. 2008-291 was approved terminating the original lease with the San Bernardino County Society for Crippled Children and Adults, Inc. (Easter Seals) and authorized the execution of a new lease with Easter Seals of Southern California. The lease is a term of 50 years, commencing on July 7, 2008, and terminating on June 6, 2058, with the rent payment continuing to be $1 per year. The area being leased was also increased to include an additional 31,187 square feet South of the currently improved area, to be used for future expansion of the facility. As a condition of the Lease, Easter Seals agreed to make certain improvements, which were to be completed in two phases by certain dates as described in the timeline created by Easter Seals. Phase One included improvements to the existing building and was to be completed by December 31, 2009. Phase Two included the construction of additional structures and a playground area within the unimproved expanded area, and was to be completed by December 31, 2015. Easter Seals advised us that they were unable to complete the improvements by the deadlines, due to the current economy and the loss of funding from various sources. At that time, Easter Seals indicated they were still committed to completing the project and expected new funding would be available through multiple sources. Unfortunately, the funding was never received and Easter Seals has since indicated that they will be unable to follow through with their commitment to complete the project and do not anticipate their funding situation to change in the near future. On March 14, 2012, a letter was received from Easter Seals, requesting to terminate the current lease as they are unable to complete the proposed renovations of the site or provide child development services at this location. The lease agreement indicates that termination of the lease is by mutual consent. The attached resolution acknowledges and accepts the termination of the lease with Easter Seals. Easter Seals was only leasing the land from the City and they constructed all improvements at their cost. However, per the lease agreement, all improvements on the premises revert to City ownership, at no cost to the City at the termination of the lease. As part of the proposed action to Packet Pg. 978 1884 accept the termination, it is recommend that authorization be given to the Public Works Director to initiate selling the property "as-is." As-part of those proceedings, all City departments will be notified of the proposal and will be requested to comment for possible conflicts or potential City use. The other options would be for the City to retain the property for future City use or sell in a better market; however, the City would have to secure the site and assume all responsibility for the property. Entering into another lease with an interested party is a third option; however, the site would need to be brought to current code and compliance standards. The costs of completing the required improvements have not yet been estimated. Before receiving the termination letter from Easter Seals, the City was recently contacted by two separate parties interested in purchasing the site for development. One of the parties represents the adjacent owner to the east, with an interest in expanding the existing adjacent shopping center. The other party did not indicate a specific development or use. Sale of this property would require several steps including securing a title report and an appraisal. The sale would be subject to a bidding process, if the property is valued over $25,000, which is anticipated. The minimum bid will be the appraised fair market value. A source of funding will need to be identified to pay for the upfront costs, which are anticipated not to exceed $7,500, including costs of title report, appraisal and advertising costs. These costs could be recovered from the sale proceeds. City Attorney Review: .SuAQOrtin2 Documents: RCA Attach-Vicinity Map (PDF) RCA Attach- Plat (PDF) Resolution-Termination (PDF) Reso Exhibit 1 -Lease Agreement-Easter Seals (PDF) Reso Exhibit 2 -Letter (PDF) i O I i Packet Pg. 979 r a.a...oa. on o nn ro U­0 e,..,.e-------------- d d N � v F N d Q y t1 c O a` 215 oa. e9aav op o� O, 40th St 330 N a to Marshall Blvd. 9 N M W 210 r 2M Highland Ave. ; d N m r Base Line St. m h � O 0 p 9th St R i m C 5th St. E Rialto Ave. m E S i Mill St. R o d U Orange how Rd. r W m r o C r0 D LOCATION OF LEASED AREA r VICINITY MAP a NTS U K C d E r v m CITY OF SAN DEPARTMENT T IN PUBLIC WORKS DEPARTMENT Lease Agreement with Easter Seals of Southern Q ttw REAL PROPERTY SECTION California, Inc., for a portion of City owned property located south of 9th Street, west of Waterman Avenue - 241 E. 9th Street. ® Indicates un-incorporated areas within City's Sphere of Influence Created by: Ryan Sandoval paeg 9$Qt` i i I NWC LOT 4 9TH POB STREET NEC LOT 5 36.5 _ 50 86.5 200 (455.0) in I 55 0 N I I v m W0 0' o I U 0140-241-45 ry I O p_ z I Z o wy Q o �qa0 0:� 66.5_ a _/LLyp 114:8 m ���•�/, > I'l r n� ■ O I �N 9;K N 0 a 5 R.S.BIw w0 10 3° fm 4 I; 5 229 Q '3 140-241-5/ I� ,40-z41-49 N � ol4o-za-i3 I w m 41.251 ' � I 0140-zp-11 o O I I I � E 1 \ I 0 \ I 0140 241-b 55' � I \ I a I m4o-za-ss \ I � a a r I @ Ar a a U . c d E 01-12 r U A Q CITY OF SAN BERNARDINO LEASE OF CITY PROPERTY (LAND ONLY)WITH EASTER SEAL PUBLIC WORKS DEPARTMENT SOUTHERN CALIFORNIA, INC., -241 E. 9TH STREET SaoNeraar 110 REAL PROPERTY SECTION APN'S: 0140-241-45& 54 Prepared by: Ryan Sandoval Date: 08/18/2010 Legend: r---k `--J =CITY OWNED PROPERTY FILE NO.: 15.06-057 ® =LEASE AREA PaCketPg.9SY 8.L.c 1 RESOLUTION NO. m 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY c OF SAN BERNARDINO TERMINATING THE LEASE BETWEEN THE CITY OF 3 SAN BERNARDINO AND EASTER SEALS SOUTHERN CALIFORNIA, INC., FOR CITY-OWNED PROPERTY LOCATED AT 241 E. 9T11 STREET, SAN 0 4 BERNARDINO,CA. 0. 0 5 r WHEREAS, Resolution No. 2008-291 was adopted on July 21, 2008, approving a a 6 06 Lease Agreement between the City of San Bernardino and Easter Seals Southern California, T d 8 Inc., relating to City owned property located at 241 E. 9'h Street, San Bernardino, CA (copy of `m N R 9 Lease Agreement is attached as Exhibit"I" and incorporated herein); and r 10 3 WHEREAS, Section 8 of the Lease Agreement, states that the Lease may be N cc 11 terminated by mutual consent of the Lessor and Lessee within a thirty (30) day written c 12 C notification by either party; and 00 13 WHEREAS, written notification dated March 14, 2012, was given by Easter Seals d 14 ` 15 Southern California, Inc, requesting that the Lease be terminated, letter attached as Exhibit a. 16 "2" and incorporated herein. � 00 17 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE 18 CITY OF SAN BERNARDINO AS FOLLOWS: 0 19 Mn 20 SECTION 1. The current Lease Agreement, dated July 21, 2008, between the City of XM a 0 21 San Bernardino and Easter Seals Southern California, Inc., relating to City-owned property % 22 located at 241 E. 9`h Street, is hereby terminated. d 23 `o 24 0 25 26 E L 27 8 28 a 8.L.c 1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO TERMINATING THE LEASE BETWEEN THE CITY OF SAN BERNARDINO AND — EASTER SEALS SOUTHERN CALIFORNIA, INC, FOR CITY OWNED PROPERTY LOCATED AT 2 241 E.9"STREET,SAN BERNARDINO,CA. o 3 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor c 4 a` and Common Council of the City of San Bernardino at a meeting o 5 r 6 thereof,held on the_day of 2012,by the following vote,to wit: a' �e N 7 Council Members: AYES NAYS ABSTAIN ABSENT m m 8 MARQUEZ y A 9 w JENKINS Z 10 ; d 11 VALDIVIA R d J w 12 SHORETT c 0 13 KELLEY E 14 JOHNSON 15 MCCAMMACK a 16 v 17 00 18 Georgeann Hanna, City Clerk N 0 0 19 The foregoing resolution is hereby approved this day of 2012. d 20 C 0 21 Patrick J. Morris, Mayor S 22 City of San Bernardino £ d 23 Approved as to form: c 24 JAMES F. PENMAN, City Attorney —0 25 By' 26 E 27 r v R 28 a 8.L.d 2009-291 EXHIBIT "1" 0 v U LEASE 0 a- 0 THIS LEASE AGREEMENT,made and entered into this o7/sr day of L 2008, by and between the CITY OF SAN BERNARDINO, a N municipal corporation,hereinafter referred to as "Lessor", and EASTER SEALS SOUTHERN m CALIFORNIA, INC., a corporation, hereinafter referred to as "Lessee". w RECITALS t 0 This lease is made and entered into with respect to the following facts: v J (a) Lessor is the owner of the property herein described. o c 0 (b) Lessor is willing to lease the property to Lessee upon the terms and E conditions hereinafter set forth. F U) (c) Lessee desires the use of said land, a x NOW THEREFORE,the parties hereto agree as follows: 1. Property Leased. N Lessor hereby leases to Lessee, and the Lessee hereby leases from Lessor, a parcel of ur land located on the south side of Ninth Street between Sierra Way and Waterman Avenue in the City of San Bernardino, County of San Bernardino, State of California, generally referenced to as Assessor's Parcel Nos. 0140-241-45 and 0140-241-54,and more particularly described as w follows: m E All that portion of Lot 4, Block 3, Rancho San Bernardino, as per plat thereof, m recorded in Book 7 of Maps, Page 2, records of the County Recorder of San a Bernardino County, State of California, described as follows: N m Beginning at a point on the North line of said Lot 4, which is 455 feet West of the Northeast comer of Lot 5 in said Block 3, said point being on the Westerly line of property conveyed by the City of San Bernardino, in a Corporation Quitclaim Deed recorded November 17, 1983,as Instrument No, 1983-0272008,Official w Records of said County;thence along said line described in said Quit Claim Deed 0 and following its various courses and distances as follows: South a distance of 200 d feet;thence West, a distance of 114.58 feet; thence South 14°23' 20' East to a point that is 485 feet South of and measured at right angles to said North line of Lot 4; thence Westerly and leaving said line described in said Quit Claim Deed E z v m Packet Pg.984 8.L.d 2008-291 0 v m 0 0 along a line that is parallel with said North line, to the East line of the West 2-acres - a of said Lot 4; thence North along the said East line,a distance of 485 feet more or 0 less to said North line of Lot 4;thence Easterly along said North line, to the Point s of Beginning. a oa Reserving to the Grantor a 30.00 foot easement for the operation and maintenance of a 30 inch pipe line, said easement to be 15.00 feet on each side of the following rn described center line: `m N R Commencing at a point which is 117.94 feet west of the Northeast comer of the w s above described property; thence South 01' 07' East, a distance of 485 feet to the 3 South line of the above described property, said point being the taste point of d beginning; thence Course No. 1,North Ol° 07' West to a point which is 19.78 feet South of the North line of said I.ot 4, said point being Point"A"; thence Course - w No. 2 from said Point "A",North 45°East to the North line of said Lot 4;thence 0 c Course No. 3 from said Point"A",North 45°West to the North line of said Lot 4. g c The side lines of said easement shall be extended or shortened as to terminate at E their point of intersection. F Said property is shown on the attached plat marked as Exhibit"A". a CL 2. Use. The leased premises shall be used for a child day care center/child development center. a m 0 Lessee agrees to use the premises for such purposes, and not to use or permit the use of the iu property for any other purpose unless the Lessor has previously approved such use in writing. w Lessee further understands and agrees that there shall be no restriction of admission of children v E d to the center on the basis of race, color,creed, religion, disability, ancestry, sex,or national d rn origin, and Lessee further understands and agrees that there shall be no religious teaching, N m m indoctrination, or reference to religion in any way, manner, or form whatsoever inasmuch as J Lessor is a public entity and subject to constitutional prohibitions concerning religious °- s X w activities. Lessee agrees to conduct its child day care/child development center in such a 0 d rr manner as to not violate any such constitutional restrictions. Lessee shall not commit, or allow c d to be committed, any waste or nuisance in the leased premises, nor shall it use or allow the E U N a 07/17/08 2 PacketPg. 985 B.L.d 2008-291 6 co O v d 0 U premises to be used for an unlawful purpose. Lessee shall at all times possess all necessary ° a 0 licenses and approvals for the operation of a day care center and shall immediately notify z Lessor, through its City Clerk, at any time that such licenses or approvals have been revoked or as N A modified. L 0 3. Term. N 0 w The term of this lease shall be for a period of fifty(50)years commencing July 7, 2008, £ .3 v and terminating on June 6,2058,unless terminated at an earlier date as provided in paragraph J w g O C O 4. Lease Payments. M E Lessee agrees to pay and Lessor agrees to accept as rental for said premises, for the a N tern hereof,a yearly rental of ONE DOLLAR($1.00)per year for each and every year of the a o: term of the lease, which rental shall be paid annually in advance commencing on the 71h day of _m July, 2008,and thereafter on or before the first day of July of each and every year of the term N m herein. Payments shall be directed to: rn v City of San Bernardino w Real Property Section 300 North"D" Street r d San Bernardino, CA 92418 v m 5. Utilities. 0 a d N Lessee shall pay for all electricity, gas,water,telephone service, and all other services J and utilities, including service installation fees and charges for such utilities during the term of a this Lease. If Lessee desires additional utilities and/or utility services to the premises, Lessee w 0 must first obtain written consent from Lessor. All additional utility connections for the facility shall be placed underground. E L U F a 07/17/08 3 Packet Pg. 986 8.L.d 2008-291 U) 0 m 0 U O 6. Taxes/Possessory Interest. a` 0 Lessee covenants during the term of this Lease to pay, when due, all taxes and s assessments that may be assessed or imposed upon the Lessee's possessory interest in and to xt m the premises and upon personal property located on the premises. During Lessee's possession rn d and use of the leased premises,should any taxes thereon be assessed against Lessor, Lessee m W r agrees to indemnify Lessor thereon. Lessee agrees to, and shall hold harmless, Lessor from any 3 m and all liability for any such taxes due by virtue of Lessee's improvements, equipment, v w furniture, fixtures,or other personal property. 0 0 7. Insurance. c E Lessee agrees to procure and maintain in force during the term of this Lease and any extension,at its own expense, a policy or policies of insurance against lass or damage to the a Of leased premises, appurtenances and permanent equipment, resulting from fire, in a minimum co amount of$100,000.00; and from lightning, vandalism,malicious mischief, and such other N m d perils ordinarily defined as"extended coverage" and other perils in a minimum amount of N d $100,000.00. The fire and extended coverage insurance policy shall name Lessor as an w additional insured,and shall contain a provision that loss shall be payable to Lessee and Lessor d E m as their interests may appear. Lessee agrees to procure and maintain in force during the term of rn this lease and any extension thereof,at its expense,public liability insurance in companies and a m v through brokers approved by Lessor,adequate to protect against liability for damage claims arising in or around the Leased premises in a minimum amount of at least three million dollars 9 L X W ($3,000,000.00) for each person injured, six million dollars($6,000,000.00) in the aggregate, 0 d one hundred thousand($100,000.00)for property damage. Lessee shall provide to Lessor a c m certificate of insurance and an additional insured endorsement that provides: t U Q 07/17/08 4 Packet Pg. 987 8.L.d 2008-291 In 0 m 0 U (a) The City of San Bernardino named as an additional insured. 0 a 0 (b) The insurance company name,policy number, period of coverage, and the L amount of insurance. 06 N (c) That the Real Property Section of the Development Services Department of the n 0 City of San Bernardino must be given notice in writing at least thirty(3)days w prior to cancellation, material change, or refusal to renew the policy. r 3 d (d) That Lessee's insurance will be primary to any coverage the City of San m J Bernardino may have in effect. o c 0 Lessee agrees that, if such insurance policies are not kept in force during the term of the c E lease and any extension thereof, Lessor may have the option to immediately declare this Lease Cn in default, and to terminate said Lease. a 8. Termination. v CO CO This Lease may be terminated by mutual consent of the Lessor and Lessee within a N R thirty (30)day written notification by either party. Upon termination of this Lease, Lessee shall (n d surrender the property occupied by this Lease in as good condition as it was at the time of w Lessee's entry thereof subject to the conditions herein set forth. E 9. Maintenance and Operation. d The Lessee is familiar with the leased premises and has knowledge of the present N m 0 conditions that exist thereon. Lessee shall, at its own expense, maintain the leased premises and all improvements thereon in good order, condition,and repair. Lessee shall provide or z X cause to be provided all security services, maintenance services, and janitorial services, which o N d are required for the proper care and use of the premises. c m E L U 07/17/08 S Packet P9. 988 8.L.d 2008-291 d 0 a d m U (a) Licenses. Lessee shall post in a prominent place and manner in the 0 a. 0 demised premises all business licenses, certificates, a copy of this Lease, and all permits that r are required to do Lessee's business in the City of San Bernardino. at N (b) Vendors. Lessee shall not permit vendors to display wares, n L d materials,or advertisements inside or outside the demised premises unless prior written w permission is secured from Lessor and such written permission is posted in a prominent place 3 d and manner in the premises. J w 10. Improvements. 0 C 0 Lessee shall not make or suffer to he made any alterations to the demised premises or E any part thereof, without the prior written consent of Lessor.Any and all alterations and/or F W improvements made to the demised premises pursuant to this section shall, upon termination of rr IL rr this Lease, remain as a part of the premises and at no cost or obligation to the Lessor. v m 11. Construction Costs and Timeline of Work. N m (a) All construction work shall be done in conformity with applicable building laws, Un iv ordinances, and regulations. Lessee agrees not to request additional funding,or w waiver of any fees associated with development and shall bear and pay the cost d E of all improvements,building fees, permit fees, including but not limited to d M Development Permit or Conditional Use Permit, inspections and development N @ d impact fees. (b) Lessee agrees to construct, improve and/or renovate the leased property in two .0 r X (2)phases, which shall include,but not be limited to,the renovation of the o N d existing structure by December 31, 2009, and the construction and/or c 0 improvement of additional structures and playgrounds on the unimproved area E U @ r 07/17/08 6 Packet Pg.989 S.L.d 2008-291 U) 0 d m U of the leased property by December 31, 2015, and as more fully described in 0 CL 0 attached Exhibit`B". z (c) Lessee agrees that if the construction and/or improvements of Phase 2 are not �a N completed by the date set forth above, Lessee consents to amend the Lease to m exclude all that portion of land lying south of the north 200 feet of the leased W area from the lease,which is the area proposed for Phase 2 improvements. v (d) Lessee agrees that it will apply for and pay all applicable fees for a General Plan J Amendment for the parcel of land included in Phase 2 of the development o C 0 (APN: 0140-24-54), currently zoned as PF(Public Facility) to CG-I E (Commercial General),before any construction and/or improvements take place. F Cn (e) Lessee agrees that it will keep the leased premises free from any liens and that it 1� a will fully pay and discharge all labor and material bills arising from v CO W constriction, repair or alteration work. The Lessor shall at all times have the N M right to enter upon the leased premises and to post and maintain notices thereon rn d of non-responsibility for the cost of any construction, repair or alteration by W Lessee of any structures or improvements at any time upon said premises. E 12.Alterations Additions,or Changes Required by. Law. d rn If, during the term of this lease, any law, regulation, or rule requires that an alteration, w m m addition,or other change be made to the demised premises,the parties agree as follows: (a) If the alterations, additions,or changes are required as a result of Lessee's use of .2 s X the premises, Lessee will make them and bear all expense. o N d (b) If the alterations, additions, or changes are required as a result of the condition c ar or nature of the premises at the time of execution of this Lease, and are not z U 07/17/08 7 Packet Pg. 990 8.L.d 2008-291 v 0 v m m U caused by use of the premises by Lessee, Lessor will make them and bear all a 0 expenses. L 13.Default. m N In the event Lessee is in default in the payment of rentals or other charges hereunder or n m is otherwise in breach of its covenants or obligations hereunder, and such default exists for a w period of thirty days after notice from Lessor to Lessee of such default, Lessor shall have the r 3 d right and privilege of terminating this Lease and declaring the same at an end, and of entering m J upon and taking possession of said premises, and shall have the remedies now or hereafter o C O provided by law for recovery of rent,repossession of the premises and damages occasioned by m such default. If such default should occur then Lessor shall have the right to take possession of U) and appropriate to itself without payment therefor,any property of Lessee or anyone claiming � CL under it,then remaining on said premises. v m ar 14. Inspections. N R Lessor, it agents, officers,or employees may enter upon the demised premises at such iu reasonable times during Lessor's normal business hours as it deems necessary for the purpose R w of inspection of the premises to determine whether the terms and conditions of this Lease are c d E being performed and kept by Lessee. m m ¢ 15. Effect of Lessor's Waiver. w R m Lessor's waiver of a breach of any term, covenant, or condition of this Lease is not a waiver of a breach of any other term, covenant, or condition,nor of any subsequent breach of s X the term,covenant, or condition previously waived. c N v 16.Non-Discrimination. c d Lessee hereby covenants by and for itself,its successors,executors, administrators, and E U R a 07/17/08 s Packet Pg.991 8.L.d 2008-291 d W 0 v v m 0 assigns,all persons under or through it, and this Lease is made and accepted upon and subject 0 to the following conditions: r That there shall be no discrimination against or segregation of any person or group of Oa N R persons, on account of race,color, creed, religion, disability, sex,national origin, ancestry,or d any other category protected by State or Federal law, in the leasing, sub-leasing,transferring, w r use, occupancy,tenure, or enjoyment of the premises here leased nor shall the Lessee itself, or 3 d any person claiming under or through it, establish or permit any such practice or practices of w discrimination or segregation with reference to the selection, location, number,use,or 0 c 0 occupancy,of tenants, lessees, subleases, subtenants, or vendees on the premises herein leased. 17.Assignments. F Lessee shall not assign this lease or sublet the said premises or any part thereof without a obtaining the prior written consent of the Lessor. m 18. Validity. N t6 d If any one or more of the terms, provisions, promises,covenants,or conditions, of this N L d Lease shall, to any extent, be adjudged invalid, unenforceable, void,or voidable for any reason w whatsoever by a court of competent jurisdiction, each and all the remaining terms,provisions, d E d promises,covenants, and conditions of this Lease shall not be affected thereby and shall be m a enforceable to the fullest extent permitted by law. N m m 19. Lease Applicable to Successors, Etc. J This Lease and the terms,covenants, and conditions hereof apply to and are binding on a L X w the successors, executors,administrators, and assigns of the parties hereto. o N d 20. Lease Breached by Lessee's Receivership, Assignment for the Benefit of Creditors, c v Insolvency, or Bankruptcy. E Q 07/17/08 9 Packet Pg. 992 B.L.d 2008-291 d 0 a d U v The appointment of a receiver to take possession of Lessee's assets, Lessee's general 0. 0 assignment for the benefit of creditors,or Lessee's insolvency or taking or suffering action = under the Bankruptcy Act is a breach of this Lease and shall terminate same. N A 21. Eminent Domain. rn d If the whole of the leased premises, or so much thereof as to render the remainder W unusable for the purpose for which the same was leased, shall be taken under the power of Y 3 m eminent domain, then this Lease shall terminate as of the date possession shall be so taken. If m v J less than the whole of the leased premises shall be taken under the power of eminent domain, `0 C 0 and the remainder is usable for the leased purpose,then this Lease shall continue in full force E and effect and shall not be terminated by virtue of such taking and the parties may waive the N benefit of any law to the contrary, in which event there shall be partial abatement of the rent 1� Cl- hereunder in an amount equivalent to the prorated use of the remaining premises. Any award made in eminent domain proceedings for the taking or damaging of the leased premises in N 10 whole or in part shall be paid to the Lessor(together with any other money which shall be or to d may be made available for such purpose). m w 22.Indemnification and Hold Harmless. c N E Lessee shall indemnify and hold harmless Lessor, its elective and appointive boards, d a� commissions,officers, agents, and employees from any liability for damage or claims for d N m m damage for personal injury, including death, as well as from claims for property arising from or related to Lessee's operations under this Lease,whether such operations be by Lessee or by 72 z x any one or more persons directly or indirectly employed by or acting as agent for Lessee. w 0 N v Lessee agrees to and shall defend Lessor and its elective and appointive boards, commissions, d officers,agents and employees from any suits or actions at law or in equity for damages caused, E U R a 07/17/08 10 Packet Pg. 993 8.L.d 2008-291 0 v v m U or alleged to have been caused,by reason of any of Lessee's operations under this lease. a 0 23.Amendment. r This Lease may be amended or modified only by written agreement signed by both on A M parties hereto. Failure on the part of either party to enforce any provision of this Lease shall n `m not be construed as a waiver of the right to compel enforcement of such provision or w s provisions, nor act to release any party from its obligations under this Lease. 3 d 24. Notices. J w All notices given in connection with this Lease shall be in writing and delivered in 0 c 0 person or sent by certified mail,postage prepaid, addressed as follows: E LESSOR LESSEE F City of San Bernardino Easter Seals Southern California, Inc. W Development Services Department ATTN: Coordinator of Administration a Real Property Section 1801 E. Edinger Avenue, Suite 190 300 North"D" Street Santa Ana, CA 92708 San Bernardino, CA 92418 N 16 U 25. Time of Essence. U) m Time is of the essence herein. o W 26. Compliance with Laws. d E Lessee shall not violate, nor allow the violation of,any City, State or Federal law, in v P rn conducting its operations under this Lease. w A d 27. Option to Renew. -7i If Lessee has fully performed all of the terms, conditions,and covenants of this Lease L2 L X for the term hereof,then upon mutual consent by both the Lessor and Lessee, the Lessee shall o N d have the right to extend the term of this Lease for an additional term of fifty(50)years c v ("Renewal Term"). The Renewal Term shall be on the terms and conditions set forth herein, or E U m a 07/17/08 11 Packet Pg. 994 8.L.d 2008-291 w 0 n 0 U U as may be amended. Said renewal shall be at a total rent to be negotiated by the Lessor and - n. 0 Lessee. To exercise the option to renew, Lessee must give Lessor written notice of Lessee's s a intention to do so at least one hundred-twenty(120)days prior to the expiration of this Lease. «t N R 28.Covenants. (n d There are no covenants or warranties other than those expressed in this Lease. w t 29. Entire Agreement. 3 0 This agreement constitutes the entire Agreement between the parties and may be J w modified only by further written agreement between parties. 0 c 0 30, Attorneys' Fees, E The prevailing party in any legal action to enforce or interpret any provision of this F U) Lease will be entitled to recover from the losing party all attorneys' fees, court costs, and q� EL Of necessary disbursements in connection with that action. The costs, salary, and expenses of the v City Attorney,and members of his office, in connection with that action shall be considered as N 10 attorneys' fees for the purpose of this Lease. U) d w E d m s a d N N d J Q L X W O N d r N >_ L U O a 07/17/08 12 Packet Pg. 995 2009-291 d V) 0 (D d v IN WITNESS WHEREOF,the parties have executed this Lease on the day and year set 0 a. 0 forth at the beginning of this Lease. r �o CITY OF S N B RNARDINO m d N m By: F LSON,City Manager w t Y 3 v N A ATTEST: 0 0 C l..K.�r 4A k t O By: �e.Q. C RA HEL CLARK,City Clerk E d U) Of EASTER SEALS SOUTHERN X CALIFORNIA,INC. v 00 m A By: C J MARK S. WHITLEY,President m w c Approved as to form: E m m a� By: J -S F. PENMAN, City Attorney a s X w 0 W N i+ E O C d L V R Y Q 07/17/08 13 Packet¢g.99firy B.L.d 2008-291 Z EXHIBIT 'A " o v v 0 0 o_ 0 — — — —t — s Hmc Lot a : 9TN PO° STREET N6c Lor e Q n !O !iD (7001 — .0 u»m N I »' m I I � I - °" I W v r z 0 m OLK Y � G � I ,oa41• n' ( O I w 3 rg� 4 I s 220 E r -],I aus I d' 9 I iam-]ai-n o_ I � I v I � I � 1 I I w uo 2W 1367 1 � I C E I � Q N ✓, A d J r a.r.ima t x w 0 N CITY OF SAN BERNARDINO LEASE OF CITY PROPERTY(LAND ONLY)WITH EASTER SEALS w DEVELOPMENT SERVICES DEPARTMENT SOUTHERN CALIFORNIA, INC., -241 E.9TH STREET pi REAL PROPERTY SECTION APN'S:0140-241-45&54 E r v Prepared by-. Ryan Sandoval Date: 04121/2006 Legend:`_=j -CITY OWNED PROPERTY a FILE NO.: 15.06-057 ® •LEASE AREA �'Packet�g.997 2008-291 v 0 EXHIBIT`B" v m 0 PHASE ONE: (Existiog Building Renovation) 0 IL 0 Our Timeline r The current timeline for the renovation of the existing building for the Easter Scals Child Development :3 Center in San Bernardino is as follows: Q aiS V ._ N Augwt 2008 Complete Architectural Drawings v to September 2008 _ City Approvals and Budding Permit d November 2008 Begin Renovation Work N R February 2009 Renovation Continues w Begin Playground Work 3 r March 2009 Renovation Continues d _ Begin Landscaping Work m April 2009 Com lete Renovation June 2009 60 Day Licensing Period o ul X 21709 Grand Opening c 0 A c Inycatment Required: d Easter Scals needs approximately$1.25 million dollars to carry out the renovation of the existing ~ building and start-up of the center. 6: h= Sub-Total Total v Renovation Coats Interior Renovation $750,000 N (plumbing,electrical,kitchen, lighting,carpentry,HVAC,etc.) L Exterior Renovation $100,000 (roof,parking lot,lighting,etc.) w Playgrounds $100,000 Landscaping $25,000 c Miscellaneous $25,000 S E Renovation Costs Subtotal $1,000,000 m L Equipment& Furnishings Furniture&Equipment $100,000 Kitchen Supplies $15,000 Classroom Supplies $60,000 Equipment&Furnishings Subtotal $175,000 a r Start-Up w Staffing $50,000 0 Other Operating Costs $25,000 m Stan-Up Subtotal $75,000 c v GRAND TOTAL $1,250,000 r v m a 07/17/08 15 B.L.d 2008-291 o n m m 0 Proposed PHASE TWO: (Modulars) ° Easter Seals hopes to implement a second phase to this project after the renovation of the existing c building is complete. In Phase Two,we plan to revitalize dirt lots to the rear of the property by adding s landscaping,playground areas,two classroom modular;and increased parking capacity. Presently,this C land sits vacant and is an attractive spot for the homeless,illegal dumping,d rug dealing and other criminal activity. These additional modulars will nearly double the capacity of our center. m v Our Time t: Phase Two will be implemented after Phase 1. Start-up of Phase Two will depend on financing, H fundraising and the availability of program slots from Head Start and the Department of Education. w Phase Two could start as early as 2010 but no later than 2015. $ 3 Investment Required(Estimated): w Easter Seals needs approximately$1.5 million dollars to carry out the proposed second phase of this project. c c Item ub�-T SHI T W m c Modular Costs E Site Preparation&Parking Lot $200,000 F Modulars (x2) $800,000 y t Playgrounds $100,000 Q. Parking Lot $100,000 Landscaping $25,000 v Miscellaneous $25,000 °D ao Renovation Costs Subtotal $1,250,000 N Equipment&Furnishings Furniture&Equipment $125,000 Classroom Supplies $75,000 H Equipment&Furnishings Subtotal $200,000 w 75 Start-up y Staffing $50,000 m Stan-Up Subtotal $50,000 rn Q GRAND TOTAL $1,500,000 y R m J r L X W O W d O C d E L V W Q 07/17/08 16 _ B.L.e -� i EXHIBIT "2" Creating solutions, changing lives. Easter Seals • - - • Services for,children and adults with Southorn California disabilities in Southern California 1570 E.17'"Street k Santa Ana,California S 92705-4770 0 #1 714.834.1111 phone f i 714.834.1128 fax m March 14, 2012 0 www.essc.org a z 1 Laszlo "Les" Fogassy Assessment District/Real Property Manager a 4 CITY OF SAN BERNARDINO a R Public Works Department rn Real Property Section d 300 N. "D" Street, 3rd Floor V A ' LU San Bernardino, CA 92418 i RE: Lease agreement-241 E. 9`h Street,San Bernardino N m j Dear Mr. Fogassy, J I o c o I 1 regret to inform you that, despite our best efforts, Easter Seals Southern California will not be able to complete the proposed renovations to the above referenced property per the timeline outlined in our c E lease agreement. As a result,we will be unable to provide child development services(or any other services) at this location. Accordingly, we would like to formally request that our lease agreement be rn terminated at the earliest possible date. a , to We appreciate your patience and support over the past year. We will be happy to work with your co office regarding the appropriate disposition of the building and personal property located on-site and other logistics. As always, we are open to suggestions as to how Easter Seals might maintain a presence in the community to provide services for the residents of San Bernardino. J Should you have any questions or concerns, please don't hesitate to contact me or our Facilities r Management Consultant Mike Flory at (714) 834-111 extension 229(mike.florv@essc.ore). a r X W Sincerely, N d C d E Mark Whitley President A Q Cc: Ryan Sandoval