HomeMy WebLinkAbout05.H- Public Works 4.H
RESOLUTION (ID#2549) DOC ID: 2549
CITY OF SAN BERNARDINO—REQUEST FOR COUNCIL ACTION
Lease
From: Tony Frossard M/CC Meeting Date: 07/15/2013
Prepared by: Ryan Sandoval, (909) 384-5140
Dept: Public Works Ward(s): 1
Subject:
Resolution of the Mayor and Common Council of tie City of San Bernardino Authorizing the
Execution of a Lease Agreement Between the City f San Bernardino and Casa Ramona, Inc.,
for City-Owned Property Located at 1633 West Fifth Street in San Bernardino. (#2549)
Current Business Registration Certificate: Yes
Financial Impact:
The annual revenue from the lease will be $3,750.00 for the first year of the lease and an
additional 5% each consecutive year thereafter. Casa Ramona will maintain the facility and pay
all the utilities and other costs associated with the operation of the day care center.
Motion: Adopt the Resolution.
Synopsis of Previous Council Action:
AVON 07/06/2009 - Resolution No. 2009-183 was adopted, authorizing the execution of a Lease
Agreement with Casa Ramona, Inc., for City-owned property located at 1633
West Fifth Street.
06/06/2011 - Resolution No. 2011-120 was adopted, authorizing the execution of an
Amendment to the Lease Agreement with Casa Ramona, Inc., to extend the term
for one additional two-year term. i
Background:
On July 6, 2009, Resolution No. 2009-183 was adopted authorizing the execution of a Lease
Agreement with Casa Ramona, Inc., for three structures, playground equipment, and
appurtenances located at 1633 W. Fifth Street within.Nunez Park. The Lease Agreement was for
a two-year term, which commenced on July 23, 2009, with an option to renew the lease for an
additional two-year term upon mutual consent by b th parties. On June 6, 2011, Resolution No.
2011-120 was adopted, authorizing the execution of an amendment to the Lease Agreement to
extend the term of the Lease for one additional two-year term, commencing on July 23, 2011,
and set to terminate on July 22, 2013.
This location is being used as a temporary childcare center, while the Casa Ramona Community
Center located at 1524 W. 7th Street was being demolished and rebuilt. Due to unforeseen
circumstances, Casa Ramona is unable to complete the construction of the new facility at this
time and has requested that a new five-year Lease Agreement be entered to continue the use of
these facilities. If approved, the Lease would co ence on July 23, 2013, and terminate on July
22, 2018,with a renewal option of one(1) additiona two-year term.
Updated: 7/10/2013 by Georgeann"Gigi"Hanna Packet Pg. 295
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2549
Casa Ramona has agreed to the rent increase of twenty-five percent (25%) higher than the
current rate ($250 mo. + 25%= $312.50/month or $3,750/annually) for the first year of the five-
year term of the new Lease. The rent would then be increased on each yearly anniversary of the
Commencement Date by an amount equal to five I percent (5%) of the rent amount for the
previous year. Casa Ramona will continue to main�ain all leased facilities at their expense, as
well as pay all utilities used for the premises.
The attached resolution authorizes and directs the execution of a Lease Agreement with Casa
Ramona, Inc. for a five-year term commencing on July 23, 2013, and terminating on July 22,
2018, and also includes the option to renew the lease for an additional two-year term upon
mutual agreement by both parties.
City Attorney Review:
Supportina Documents:
Resolution (PDF)
agrmt 2549 (PDF)
Vicinity Map (PDF)
Plat (PDF)
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Updated:7/10/2013 by Georgeann"Gigi"Hanna Packet Pg. 296
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1 RESOLUTION NO.
2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF A LEASE
3 AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND CASA
4 RAMONA, INC., FOR CITY-OWNED PROPERTY LOCATED AT 1633 WEST
FIFTH STREET IN SAN BERNARDINO.
5
WHEREAS, on July 6, 2009, by Resolution No. 2009-183, the Mayor and Common
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Council authorized the execution of a Lease with Casa Ramona, Inc. for property located at
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1633 West Fifth Street within Nunez Park("Lease"); and J
9 WHEREAS, on June 6, 2011, by Resolution No. 2011-120, the Mayor and Common 0
10 Council authorized the execution of an Amendment to the Lease Agreement with Casa y
Ramona, Inc., to extend the term of the Lease for one additional two-year term, commencing
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on July 23,2011, and terminating on July 22,2013; and
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WHEREAS, Casa Ramona, Inc., wishes to enter into a new Lease Agreement for a N
15 five-year term commencing on July 23, 2013, and terminating on July 22, 2018. c
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16 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE a
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CITY OF SAN BERNARDINO AS FOLLOWS:
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18 SECTION 1. The City Manager is hereby authorized and directed to execute on o
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19 behalf of the City, a Lease Agreement with Casa Ramona, Inc., relating to City-owned
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20 property located at 1633 West Fifth Street, San Bernardino, CA, more specifically described s
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in the Lease Agreement, a copy of which is attached hereto as Exhibit "I", and incorporated a
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23 herein by reference.
24 SECTION 2. The authorization to execute the above-referenced Agreement is
25 rescinded if the parties to the Agreement fail to execute it within ninety (90) days of the
26 passage of this resolution.
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Racket fig.297
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
1 BERNARDINO AUTHORIZING THE EXECUTION OF A LEASE AGREEMENT BETWEEN THE
CITY OF SAN BERNARDINO AND CASA RAMONA, INC., FOR CITY-OWNED PROPERTY
2 LOCATED AT 1633 WEST FIFTH STREET IN SAN BERNARDINO.
3
T HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor
4
5 and Common Council of the City of San Bernardino at a meeting
6 thereof, held on the day of , 2013,by the following vote,to wit:
7 Council Members: AYES NAYS ABSTAIN ABSENT
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MARQUEZ =
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10 JENKINS
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11 VALDIVIA
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12 SHORETT a:
13 KELLEY
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JOHNSON N
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16 MCCAMMACK y
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18 Georgeann Hanna, City Clerk o
19 The foregoing resolution is hereby approved this day of 2013.
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Patrick J. Morris, Mayor a
22 City of San Bernardino
23 Approved as to form:
24 JAMES F. PENMAN,
City Attorney
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EXHIBIT "1"
LEASE
THIS LEASE AGREEMENT is made and entered into this day of
, 2013, by and between the CITY OF SAN BERNARDINO, a municipal
corporation, hereinafter referred to as "Lessor", and CASA RAMONA, INC., a nonprofit
corporation,hereinafter referred to as "Lessee".
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RECITALS o
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This lease is made and entered into with respect to the following facts: o
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(a) Lessor is the owner of the property herein described.
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(b) Lessor is willing to lease the property to Lessee.upon the terms and
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conditions hereinafter set forth. n
(c) Lessee desires the use of said structure, and appurtenant playground
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facilities.
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NOW THEREFORE, the parties hereto agree as follows: A
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1. Property Leased.
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Lessor hereby leases to Lessee, and the Lessee hereby leases from Lessor, a structure E
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consisting of three portable classrooms, bathroom facilities, playground equipment and
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appurtenances situated on approximately 15,615 sq. ft. of land, located in the City of San
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Bernardino, County of San Bernardino, State of California, described as follows: a
That portion of Lot 23, Block 24, Rancho San Bernardino, as per plat thereof recorded in
Book 7 of Maps, Page 2, records of the County Recorder of San Bernardino County,
State of California, described as follows:
Commencing at the northeast corner of said Lot 23; thence south along the cast line
thereof, a distance of 319 feet, more or less, to the north line of the south 320.62 feet of
said Lot; thence west along said north line, a distance of 129.00 feet to the True Point of
Beginning; thence continuing west along said north line of the south 320.62 feet of said
Lot, a distance of 83.50 feet; thence north and parallel with the east line of said Lot, a
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` distance of 170.30 feet; thence west and parallel with the north line of said Lot,a distance
of 56.00 feet; thence north and parallel with the east line of said Lot, a distance of 10.00
feet; thence east and parallel with the north line of said lot, a distance of 139.50 feet;
thence south a distance of 180.30 feet to the True Point of Beginning.
Said property is shown on the attached plat marked as Exhibit"A".
2. Use.
The leased premises shall be used for a child day care center/child development center.
Lessee agrees to use the premises for such purposes, and not to use or permit the use of the y
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property for any other purpose unless the Lessor has previously approved such use in writing.
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Lessee further understands and agrees that there shall be no restriction of admission of children E
to the center on the basis of race, color, creed, religion, disability, ancestry, sex, or national
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origin, and Lessee further understands and agrees that there shall be no religious teaching,
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indoctrination, or reference to religion in any way, manner, or form whatsoever inasmuch as
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Lessor is a public entity and subject to constitutional prohibitions concerning religious activities.
Lessee agrees to conduct its child day care/child development center in such a manner as to not 0_
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violate any such constitutional restrictions. Lessee shall not commit, or allow to be committed,
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any waste or nuisance in the leased premises,nor shall it use or allow the premises to be used for N
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an unlawful purpose. Lessee shall at all times possess all necessary licenses and approvals for
the operation of a day care center and shall immediately notify Lessor, through its City Clerk, at
any time that such licenses or approvals have been revoked or modified.
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3. Term.
The term of this Lease shall be five (5) years ("Initial Term), commencing on July 23,
2013 ("Commencement Date") and terminating on July 22, 2018, unless terminated at an earlier
date as provided in paragraph 9.
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4. Lease Payments.
(a) Upon the Commencement Date, Lessee shall pay Lessor as rent, the annual sum
of Three Thousand Seven Hundred Fifty and 00/100 Dollars ($3,750.00) "Rent", payable in
equal monthly installments commencing upon the Commencement Date ("Rent Start Date"),
which shall be paid within thirty (30) days after the Commencement Date. The monthly
installments shall be in the amount of Three Hundred Twelve and 50 1100 Dollars ($312.50) each
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month, due and payable on the Rent Start Date, and on the same date of each month thereafter.
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Payments shall be directed to: o
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City of San Bernardino
Public Works Department/Real Property Section
300 North"D" Street, 3rd Floor
San Bernardino, California 92418
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(b) Rent shall be increased on each yearly anniversary of the Rent Start Date by an
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amount equal to five percent(5%) of the rent then in effect for the previous year.
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5. Option to Renew.
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If Lessee has fully performed all of the terms, conditions, and covenants of this Lease N
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for the term hereof, then upon mutual consent by both the Lessor and Lessee, the Lessee shall E
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have the right to extend the term of this Lease for an additional term of two (2) years ("Renewal
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Term"). The Renewal Term shall be on the terms and conditions set forth herein, or as may be
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amended. Said renewal shall be at a total rent to be negotiated by the Lessor and Lessee, but at a
rate no less than the rent payment at the end of the term plus twenty-five percent (25%). To
exercise the option to renew, Lessee must give Lessor written notice of Lessee's intention to do
so at least one hundred-twenty(120) days prior to the expiration of this Lease.
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6. Utilities.
Lessee shall pay for all electricity, gas, water, telephone service, and all other services
and utilities, including service installation fees and charges for such utilities during the term of
this Lease. If Lessee desires additional utilities and/or utility services to the premises, Lessee
must first obtain written consent from Lessor. All additional utility connections for the facility
shall be placed underground.
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7. Taxes/Possessor
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Lessee covenants during the term of this Lease to pay, when due, all taxes and o
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assessments that may be assessed or imposed upon the Lessee's possessory interest in and to the
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premises and upon personal property located on the premises. During Lessee's possession and CO
use of the leased premises, should any taxes thereon be assessed against Lessor, Lessee agrees to W
indemnify Lessor thereon. Lessee agrees to, and shall hold harmless, Lessor from any and all N
liability for any such taxes due by virtue of Lessees improvements, equipment, furniture, _
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fixtures, or other personal property.
8. Insurance.
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Lessee agrees to procure and maintain in force during the term of this Lease and any E
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extension, at its own expense, a policy or policies of insurance against loss or damage to the
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leased premises, appurtenances and permanent equipment, resulting from fire, in a minimum
amount of$100,000.00; and from lightning, vandalism,malicious mischief, and such other perils a
ordinarily defined as "extended coverage" and other perils in a minimum amount of
$100,000.00. The fire and extended coverage insurance policy shall name Lessor as an
additional insured, and shall contain a provision that loss shall be payable to Lessee and Lessor
as their interests may appear. Lessee agrees to procure and maintain in force during the term of
this lease and any extension thereof, at its expense, public liability insurance in companies and
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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
($3,000,000.00) for each person for death or personal injury, six million dollars ($6,000,000.00)
in the aggregate, one hundred thousand($100,000.00) for property damage. Lessee shall provide
to Lessor a certificate of insurance and an additional insured endorsement that provides:
(a) The City of San Bernardino named as an additional insured.
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(b) The insurance company name,policy number,period of coverage, and the amount
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of insurance.
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(c) That the Real Property Section of the Development Services Department of the
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City of San Bernardino must be given notice in writing at least thirty (30) days v
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prior to cancellation, material change, or refusal to renew the policy. W
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(d) That Lessee's insurance will be primary to any coverage the City of San N
Bernardino may have in effect.
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Lessee agrees that, if such insurance policies are not kept in force during the term of the d
lease and any extension thereof, Lessor may have the option to immediately declare this Lease in
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default, and to terminate said Lease. £
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9. Termination.
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This Lease may be terminated by mutual consent of the Lessor and Lessee with sixty(60)
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day written notification by either party. Upon termination of this Lease, Lessee shall surrender a
the property occupied by this Lease in as good condition as it was at the time of Lessee's entry
thereof subject to the conditions herein set forth.
10. Maintenance and Operation.
The Lessee is familiar with the leased premises and has knowledge of the present
conditions that exist thereon. Lessee shall, at its own expense, maintain the leased premises and
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all improvements thereon in good order, condition, and repair. Lessee shall provide or cause to
be provided all security services, maintenance services, and janitorial services, which are
required for the proper care and use of the premises.
(a) Licenses. Lessee shall post in a prominent place and manner in the demised
premises all business licenses, certificates, a copy of this Lease, and all permits that are required
to do Lessee's business in the City of San Bernardino.
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(b) Vendors. Lessee shall not permit vendors to display wares, materials, or
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advertisements inside or outside the demised premises unless prior written permission is secured c
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from Lessor and such written permission is posted in a prominent place and manner in the
premises.
11. Improvements. °-
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Lessee shall not make or suffer to be made any alterations to the demised premises or any N
part thereof, without the prior written consent of Lessor. Any and all alterations and/or
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improvements made to the demised premises pursuant to this section shall, upon termination of
this Lease,remain as a part of the premises and at no cost or obligation to the Lessor.
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12. Alterations,Additions, or Changes Required by Law. E
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If, during the term of this lease, any law, regulation, or rule requires that an alteration,
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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 Q
the premises, Lessee will make them and bear all expense.
(b) If the alterations, additions, or changes are required as a result of the condition or
nature of the premises at the time of execution of this Lease, and are not caused by use of the
premises by Lessee, Lessor will make them and bear all expenses.
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13. Default.
In the event Lessee is in default in the payment of rentals or other charges hereunder or
is otherwise in breach of its covenants or obligations hereunder, and such default exists for a
period of thirty days after notice from Lessor to Lessee of such default, Lessor shall have the
right and privilege of terminating this Lease and declaring the same at an end, and of entering
upon and taking possession of said premises, and shall have the remedies now or hereafter
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provided by law for recovery of rent, repossession of the premises and damages occasioned by
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such default. If such default should occur then Lessor shall have the right to take possession of o
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and appropriate to itself without payment therefor, any property of Lessee or anyone claiming
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under it,then remaining on said premises. U
14. Inspections. a
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Lessor, it agents, officers, or employees may enter upon the demised premises at such N
reasonable times during Lessor's normal business hours as it deems necessary for the purpose of
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inspection of the premises to determine whether the terms and conditions of this Lease are being
performed and kept by Lessee.
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15. Effect of Lessor's Waiver. E
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Lessor's waiver of a breach of any term, covenant, or condition of this Lease is not a
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waiver of a breach of any other term, covenant, or condition, nor of any subsequent breach of the
term, covenant, or condition previously waived. Q
16. Non-Discrimination.
Lessee hereby covenants by and for itself, its successors, executors, administrators, and
assigns, all persons under or through it, and this Lease is made and accepted upon and subject to
the following conditions:
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That there shall be no discrimination against or segregation of any person or group of
persons, on account of race, color, creed, religion, disability, sex, national origin, ancestry, or
any other category protected by State or Federal law, in the leasing, sub-leasing, transferring,
use, occupancy, tenure, or enjoyment of the premises here leased nor shall the Lessee itself, or
any person claiming under or through it, establish or permit any such practice or practices of
discrimination or segregation with reference to the selection, location, number, use, or
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occupancy, of tenants, lessees, subleases, subtenants,or vendees on the premises herein leased.
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17. Assignments.
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Lessee shall not assign this lease or sublet the said premises or any part thereof without
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obtaining the prior written consent of the Lessor. v
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18. Validity.
If any one or more of the terms, provisions, promises, covenants, or conditions, of this N
Lease shall, to any extent, be adjudged invalid, unenforceable, void, or voidable for any reason
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whatsoever by a court of competent jurisdiction, each and all the remaining terms, provisions,
promises, covenants, and conditions of this Lease shall not be affected thereby and shall be
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enforceable to the fullest extent permitted by law. E
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19. Lease Applicable to Successors,Etc.
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This Lease and the terms, covenants, and conditions hereof apply to and are binding on
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the successors, executors, administrators, and assigns of the parties hereto. a
20. Lease Breached by Lessee's Receivership, Assignment for the Benefit of Creditors,
Insolvency, or Bankruptcy.
The appointment of a receiver to take possession of Lessee's assets, Lessee's general
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.
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21. Eminent Domain.
If the whole of the leased premises, or so much thereof as to render the remainder
unusable for the purpose for which the same was leased, shall be taken under the power of
eminent domain, then this Lease shall terminate as of the date possession shall be so taken. If
less than the whole of the leased premises shall be taken under the power of eminent domain, and
the remainder is usable for the leased purpose, then this Lease shall continue in full force and
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effect and shall not be terminated by virtue of such taking and the parties may waive the benefit
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of any law to the contrary, in which event there shall be partial abatement of the rent hereunder o
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in an amount equivalent to the prorated use of the remaining premises. Any award made in
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eminent domain proceedings for the taking or damaging of the leased premises in whole or in v
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part shall be paid to the Lessor (together with any other money which shall be or may be made
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available for such purpose). LO
22. Indemnification and Hold Harmless, r
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Lessee shall indemnify and hold harmless Lessor, its elective and appointive boards,
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commissions, officers, agents, and employees from any liability for damage or claims for M
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personal injury, including death, arising from or related to Lessee's operations under this Lease, E
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whether such operations be by Lessee or by any one or more persons directly or indirectly
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employed by or acting as agent for Lessee. Lessee agrees to and shall defend Lessor and its
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elective and appointive boards, commissions, officers, agents and employees from any suits or a
actions at law or in equity for damages, personal injuries, or death caused, or alleged to have
been caused,by reason of any of Lessee's operations under this lease.
23. Amendment.
This Lease may be amended or modified only by written agreement signed by both
parties hereto. Failure on the part of either party to enforce any provision of this Lease shall not
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be construed as a waiver of the right to compel enforcement of such provision or provisions, nor
act to release any party from its obligations under this Lease.
24. Notices.
All notices given in connection with this Lease shall be in writing and delivered in person
or sent by certified mail,postage prepaid, addressed as follows:
LESSOR LESSEE
City of San Bernardino Casa Ramona, Inc.
Public Works Department/Real Property Section 1524 W. 7th Street
300 North"D" Street, 3rd Floor San Bernardino, CA 92411
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San Bernardino, CA 92418 0
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25. Time of Essence.
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Time is of the essence herein.
26. Compliance with Laws. �
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Lessee shall not violate, nor allow the violation of, any City, State or Federal law, in
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conducting its operations under this Lease.
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27. Covenants.
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There are no covenants or warranties other than those expressed in this Lease. E
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28. Entire Agreement.
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This agreement constitutes the entire Agreement between the parties and may be
modified only by further written agreement between parties. a
29. Attorneys' Fees.
The prevailing party in any legal action to enforce or interpret any provision of this Lease
will be entitled to recover from the losing party all attorneys' fees, court costs, and necessary
disbursements in connection with that action. The costs, salary, and expenses of the City
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Attorney, and members of his office, in connection with that action shall be considered as
attorneys' fees for the purpose of this Lease.
IN WITNESS WHEREOF, the parties have executed this Lease on the day and year set
forth at the beginning of this Lease.
LESSOR: LESSEE:
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CITY OF SAN BERNARDINO CASA RAMONA, INC
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By: By:
ALLEN PARKER, City Manager JERRY CASILLAS, Board President N
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Date: Date: a
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ATTEST:
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By: N
GEORGEANN HANNA, City Clerk w
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Approved as to form: a
JAMES F. PENMAN, City Attorney
By: �•� C�ii�-ti"�-
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EXHIBIT "A"
PLAT MAP
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CITY CITY OF SAN BERNARDINO Sheet 1 of 1 PROPOSED AREA TO BE LEASED TO CASA RAMONA,INC.,
PUBLIC WORKS DIVISION FOR THE PURPOSE OF A CHILD CARE FACILITY-1633 W.
REAL PROPERTY SECTION STH STREET,SAN BERNARDINO(NUNEZ PARK).
LEGEND;
Created by: Ryan Sandoval � Date: &/s/.a'°I AREA TO BE LEASED BY
Checked by: Laszlo Fogassy pate; p CASA RAMONA,INC,
P File No.;15,08-172
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Location of a
Proposed Lease
Area
VICINITY MAP
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*1,ianBc�rnar CITY OF SAN BERNARDINO Pro osed Lease Agreement with Casa Ramona
PUBLIC WORKS DEPARTMENT Inc., located between 4th Street & 5th Street,
REAL PROPERTY SECTION
west of Tiajuana Street, known as 1633 W. 5th
Street (Nunez Park).
® Indicates un-incorporated areas within City's
Sphere of Influence
Created by: Ryan Sandoval Packet Pg. 311
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5TH STREET
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CITY OF SAN BERNARDINO Sheet 1 of 1 PROPOSED AREA TO BE LEASED TO CASA RAMONA,INC.,
PUBLIC WORKS DIVISION — — FOR THE PURPOSE OF A CHILD CARE FACILITY-1633 W.
REAL PROPERTY SECTION 5TH STREET,SAN BERNARDINO(NUNEZ PARK).
_ LEGEND:
Created by: Ryan Sandoval Date: & ��o�J AREA TO BE LEASED BY
Checked by: Laszlo Fogassy Date:Ofkq CASA RAMONA,INC.* File No. :15.06-172
Packet Pg. 312