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HomeMy WebLinkAbout05- Development Department DEVELOPMENT DEPARTMENT OF THE CITY OF SAN BERNARDINO REQUEST FOR COMMISSION/COUNCIL ACTION FROM: KENNETH J. HENDERSON SUBJECT: LEASE SUBSTITUTION- Executive Director 5055 HALLMARK PARKWAY DATE: November 9, 1993 --------------------------------------------------------------------------------------------------------------------------------------------- S_ynopsis of Previous Commission/Council/Committee Action(s): On November 4, 1993 the Redevelopment Committee recommended to the Community Development Commission that the Executive Director be authorized to execute a lease and all other necessary documents for a substitution of lessee at Suites A and B of 5055 Hallmark Parkway involving current lessee,Northcutt Manufacturing, and proposed lessee, Riverside Civic Light Opera. ---------------------------------------------------------------------------------------------------------------------------------------- Recommended Motion(s): (Community Development Commission) MOTION: That the Community Development Commission authorize the Executive Director to execute a lease and all other necessary documents for a substitution of lessee at Suites A and B of 5055 Hallmark Parkway involving current lessee,Northcutt Manufacturing, and proposed lessee, Riverside Civic Light Opera. 1'0 I C1Z V1�jL Administrator KENNETH J. HENIbERSON Executive Director ------------------------------------------------------------------------------------------------------------------------------------- Contact Person(s): Kenneth J. Henderson/David Norman Phone: 5081 Project Area(s): State College Ward(s): Six (6) Supporting Data Attached: Staff Report FUNDING REQUIREMENTS: Amount: N/A Source: N/A Budget Authority: N/A -------------------------------------------------------------------------------------------------------------------------- Commission/Council Notes: --------------------------------------------------------------------------------------------------------------------- KJH:DJN:nml:5055hall.edc COMMISSION MEETING AGENDA MEETING DATE: 11/15/1993 J Agenda Item Number: _°) DEVELOPMENT DEPARTN, ENT STAFF REPORT --------------------------------------------------------------------------------------------------------------------- Lease Substitution - 5055 Hallmark Parkway This staff report seeks authorization for the Executive Director to execute a lease and all other necessary documents for a substitution of lessee from an Agency owned building at 5055 Hallmark Parkway (see Exhibit "A"). Northcutt Manufacturing desires to terminate its lease prior to the end of its term and has offered the Agency the Riverside Civic Light Opera (RCLO), a quality tenant, with which the Agency can execute a new agreement, thereby fulfilling Mr. Northcutt's obligation. BACKGROUND In February 1993, Mr. Carl Northcutt, d/b/a Northcutt Manufacturing, executed a lease with the Redevelopment Agency for industrial space at 5055 Hallmark Parkway for the manufacturing of trailer components. The lease allows Mr. Northcutt to terminate same on April 1, 1994. Unfortunately, Northcutt Manufacturing was unable to utilize its leased space and needed to sublease the space to cover his leasing obligation. Mr. Northcutt has faithfully paid his monthly lease payments, but does not want to continue paying for space he cannot use. Since June 1993, the Riverside Civic Light Opera has subleased the manufacturing space from Mr. Northcutt for the purpose of assembling stage scenery for its many productions. To this date, RCLO has been a good subtenant with whom staff recommends the Agency sign a lease in substitution for Mr. Northcutt's lease. RCLO LEASE TERMS The proposed lease with the Riverside Civic Light Opera (see Exhibit "B") is for one year with an option to renew for two (2) one-year terms. The rent for option years one and two will be adjusted to market value, but not to exceed six percent (6%) of the original term's rent. The tenant can terminate its lease after six (6) months with a sixty (60) day notice. This provision was granted to the lessee due to its concerns over security, which staff is addressing. With improved security, the tenant will be more than likely to remain. It should be noted that this six (6) month period extends two months beyond Mr. Northcutt's termination date of April 1, 1994, thereby giving the Agency two (2) months additional rent which would have otherwise been lost if staff could not find another tenant. I ------------------------------------------------------------------------------------------------------------------ KJH:DJN:nm1:5055ha11.cdc COMMISSION MEETING AGENDA MEETING DATE: 11/15/1993 Agenda Item Number: I DEVELOPMENT DEPARTMENT STAFF REPORT Lease Substitution - 5055 Hallmark Parkway November 8, 1993 Page -2- --------------------------------7------------------------------------------------------------------------------------ The tenant will lease Suites A and B, a space of approximately 6,120 square feet at $.15 per square foot, or $918 per month. Northcutt Manufacturing is currently renting Suites A, B and C, a space of approximately 7,500 square feet at a rate of $.15 per square foot, or $1,125 per month. RCLO does not need Suite C, a small office and storage room. This space, however, will be merged with Don's (EIlectric, allowing staff to provide more efficient space allocations for future tenant use and iZove security for both RCLO and Don's Electric. In connection with required base building improvements and the tenancy of Don's Electric, staff is proposing additional security measures which are the subject of a related agenda item. The tenant will not require any tenant improvement allowance, and no brokerage commission will be paid by the Agency. Rent will be paid upon execution of the lease, and a security deposit is also required of the lessee. RECOMMENDATION Staff has been fortunate to secure a high quality tenant for the Northcutt Manufacturing Lease. Without this lessee, the building may once again have significant vacant space allowing opportunities for vandalism and vagrancy. Staff is taking measures to increase the building's security to retain quality tenants, without whom the Agency would not be able to recover its investment. It is, therefore, the recommendation of staff that the Agency execute a lease with the Riverside Civic Light Opera for Suites A and B of 5055 Hallmark Parkway and to execute all other agreements as necessary. Based upon the foregoing, staff recommends adoption of the form motion. ��iv41 KENNETH J. HE, DERSON, Executive Director Development Department I ------------------------------------------------------------------------------------------------------------ KJH:DJN:nm1:5055hall.cdc COMMISSION MEETING AGENDA MEETING DATE: 11/15/1993 Agenda Item Number: 6 0 u \ 13 a j r: � n. m� c •I � w a N a aG � I i 2 n_ i Y : I i a _ F � F > u n• 4 Bp _I I rY I ( I oW CA C4 I Q iI � v c V A w - \� \� _ AdM Hd00NbN3HS A l � 4 S `}v❑. 3E F-1 s •-•--- m II ` kVM NOIDNIX31 _ r h »3a.od cn Q EXHIBIT "Ayy r, DRAFT OFFICE LEASE 1. PARTIES. This Lease,dated for reference purposes only, as of ,made by and between the Redevelopment Agency of the City of San Bemardino("Lessor") and RIVERSIDE CIVIC LIGHT OPERA("Lessee"). 2. PREMISES. Lessor hereby leases to Lessee and Lessee leases from Lessor for the term, at the rental, and upon all of the conditions set forth herein,that certain real property situated in the County of San Bernardino, State of California, with an address of 5055 Hallmark Padcway, Suites A and B,property is herein called the "Premises". 3. TERM. 3.1 Term. The term of this lease shall be for a period of one(1)year commencing on and terminating at midnight on , unless sooner terminated and/or adjusted pursuant to any provision hereof. Lessee shall have the right to tenninate this lease 180 days from the conunencement date provided Lessee gives Lessor 60-day notice of such termination. In addition, Lessee retains the right and option to renew lease for a period of two (2) one-year terms. Said options to renew the tern of the lease shall be delivered to Lessor, in writing, no later than sixty (60)days prior to the end of the original lease. 4. RENT. 4.1 Rent Lessee shall pay to Lessor as rent for the Premises,the following amounts: (a) Lessee agrees to pay to Lessor as Minimum Rent, without notice or demand during the term of the lease, the monthly sutra of Nine Hundred Eighteen($918.00)Dollars, commencing in advance on or before the first day of each and every successive calendar month thereafter during the tern hereof, except that the first month's and all rent shall be paid to Landlord, without deduction or offset, in lawful money of the United States of America, at such place as Landlord may from time to time designate in writing. (b) If and when Lessee notifies Lessor of Lessee's request to extend lease during.the Option Years One and Two following the original three year temm, Lessee's base rent shall be adjusted to the market value at the time of request to extend the option. Adjusted "Market" rent shall not exceed an increase of six percent(6%) of the base rent for the original ten-n. (c) Lessee hereby agrees that Lessee waives any and all rights,payments and reimbursements, which Lessee may be,under certain circumstances, applicable and qualified, under the Articles of Redevelopment and Relocation within the Redevelopment Project Area. 4.2 Utilities. Lessee shall be responsible for the payment of Lessee's individually ! metered utilities to its suite(s) and Premises. Lessor shall provide utilities such as landscape and irrigation,parking lot lighting, and building fire sprinkler monitoring to Lessor's portion of ! conunon areas and building. Unmetered utility services that service Lessee's occupied premises shall be paid by Lessor. EXHIBIT "B" - 1 - f� 5. SECURITY DEPOSIT. Lessee shall deposit with lessor upon execution hereof$918.00 as security for Lessee's faithful performance of Lessee's obligations hereunder. If Lessee fails to pay rent or other charges due hereunder, or otherwise defaults with respect to any provision of this lease, Lessor may use, apply or retain all or any portion of said deposit for the payment of any rent or other charge in default or for the payment of any other sum to which Lessor may become obligated by reason of Lessee's default, or to compensate Lessor for any loss or damage which Lessor may suffer thereby. If Lessor so uses or applies all or any portion of said deposit,Lessee shall within ten (10) days after written demand therefore deposit cash with Lessor in an amount sufficient to restore said deposit to the full amount hereinabove stated and Lessee's failure to do so shall be a material breach of this Lease. If the monthly rent shall, from time to time, increase during the term of this Lease, Lessee shall thereupon deposit with Lessor additional security deposit so that the amount of security deposit held by Lessor shall at all times bear the same proportion to current rent as the original security deposit bears to the original monthly rent set forth in paragraph 4 hereof. Lessor shall not be required to keep said deposit separate from its general accounts. If Lessee performs all of Lessee's obligations hereunder, said deposit,or so much thereof as has not theretofore been applied by Lessor, shall be returned, without payment of interest or other increment for its use,to Lessee (or, at Lessor's option,to the last assignee, if any, of Lessee's interest hereunder) at the expiration of the term hereof, and after Lessee has vacated the Premises. No trust relationship is created herein between Lessor and Lessee with respect to said Security Deposit. 6. USE OF THE PREARSES. The Premises shall be used and occupied only for the purpose of manufacturing scenery and/or sets for theatrical production and storage in support of theatrical production, or other uses which are reasonably comparable. The Premises shall not be used for any purpose other than those set forth herein. 7. CON MN OF FREM SES. Lessee has received a Certificate of Occupancy from the City of San Bernardino as a sublessee of the subject premises under a separate agreement and has enjoyed use of the premises for more than six (6)months. As such Lessee accepts the premises as is, except that Lessor shall be obligated to perform the following: 7.1. Install and maintain an alarm system for Lessee's leased premises. Lessor shall be responsible for the payment of monitoring said alarm system. 7.2. Lessor shall replace or repair all doors which are inoperable or insecure at the time of commencement of this lease as requested by Lessee and agreed to by Lessor. Lessor shall replace or repair said doors in a type and fashion agreed to by Lessee and Lessor and as necessitated by Lessee's security and program needs and Lessor's economic and future use needs. However, the parties may agree to remove any damaged doors and, at Lessor's expense,enclose the vacated door jamb in such a manner as to create an exterior wall. i 8. MAINTENANCE,REPAIRS AND ALTERATIONS 8.1 Lessee's Obligations. Lessee shall keep in good order, condition and repair the Premises, and every part thereof,the interior improvements including without limituig the generality of the foregoing, fixtures,walls, ceilings, floors,windows and doors, except in the case of ensuring the integrity of the building's structural components and systems, which shall be the obligation of the Lessor. - 2 - r_ 8.2 Surrender. On the last day of the tenn hereof, or on any sooner termination, Lessee shall surrender the premises to Lessor in the sarne condition as when received, ordinary wear and tear excepted, clean and free of debris. Lessee shall repair any damage to the premises occasioned by the installation or removal of Lessee's trade fixtures, furnishings and equipment. 8.3 Lessor's Obligations. Subject to the obligation of Lessee to contribute to the cost thereof if Lessee is found to have caused by its actions the deficient condition, Lessor shall be obligated to maintain,without cost to the Lessee,the exterior portions of the premises, including all structural systems and components including roof, walls, flooring,plumbing, (excluding fixtures) and heating and air conditioning systems and security alarrn systems. Lessor shall be obligated to maintain the grounds and all landscaping and irrigation on the premises. Lessor shall be responsible for weekly refuse service and shall cause to have placed on site a refuse container for Lessee's shared use with other tenants. However, in the event Lessee's activities require refuse service beyond the capacity of the refuse container, Lessee shall be responsible for the disposal of all such excess refuse. 8.4 Alterations and Additions. (a) Lessee shall not, without Lessor's prior written consent, make any alterations, improvements or additions in, on or about the Premises,except for non-structural alterations not exceeding One Thousand($1,000.00)Dollars in cumulative costs during the tern of this Lease without written consent. This limitation upon Lessee shall apply,without limitation, to lighting fixtures, space heaters, air conditioning,plumbing and electrical. Lessor may require that Lessee remove any or all of said alterations, improvements or additions at the expiration of the term to restore the Premises to its prior condition. Lessor may require Lessee to provide Lessor, at Lessee's sole cost and expense, a lien and completion bond in an amount equal to one and one-half (1-1/2)times the estimated cost of any improvements proposed by Lessee, for the purposes of insuring Lessor against any liability for mechanics' and materials' liens and to insure completion of the work. Should Lessee make any alterations, improvements or additions without the prior written approval of Lessor, Lessor may require that Lessee remove any or all of the same and restore the Premises to its condition prior to said installation. (b) Any alterations, improvements or additions in, on or about the Premises that Lessee shall desire to make and which require the consent of Lessor shall be presented to Lessor in written form, with proposed detailed plans. If Lessor shall give its consent,the consent shall be deemed conditioned upon Lessee acquiring a permit from an appropriate governmental agency or agencies if required by law and the furnishing of a copy thereof to Lessor prior to the commencement of the work. (c) Lessee shall pay,when due, all claims for labor or materials furnished or alleged to have been furnished to or for Lessee at or for use in the Premises,which claims are or may be secured by any mechanics' or materials' liens against the Premises or any interest therein. Lessee i shall give Lessor not less than ten(10) days' written notice prior to commencement of any work in the Premises, and Lessor shall have the right to post notices of non-responsibility in or on the premises as provided by law. If Lessee shall, in good faith, contest the validity of any such lien, claim or demand, then Lessee shall, at its sole expense, defend itself and Lessor against the same and shall pay and satisfy any such adverse judgment which may be rendered thereon before the enforcement thereof against the lessor of the Premises,except that Lessor may require that Lessee furnish to Lessor an surety bond satisfactory to Lessor in an amount equal to such contested lien, claim or demand, which shall indemnify Lessor against liability for the sarne and holding the premises free from the effect of such lien or claim. - 3 - r In addition, Lessor may require Lessee to pay Lessor's attorneys' fees and costs in participating in such action if Lessor shall decide it is in its best interests to do so. (d) Unless Lessor requires their removal, all alterations,improvements or additions, whether or not they constitute trade fixtures,which may be made on the Premises, shall become the property of Lessor and remain upon and be surrendered with the Premises at the expiration of the term. Notwithstanding the provisions of this paragraph, Lessee's machinery and equipment, other than that which is affixed to the premises so that it cannot be removed without material damage to the Premises, shall remain the property of Lessee and may be removed by Lessee subject to the provision of this Paragraph 7. 9. INSURANCE. 9.1 Liability Insurance_ Lessee shall, at Lessee's expense,obtain and keep in force during the term of this Lease a policy of Combined Single Limit, Bodily Injury and Property Damage insurance, insuring Lessor and Lessee against any liability arising our of the ownership, use, occupancy or maintenance of the Premises and all areas appurtenant thereto. Such insurance shall be a combined single limit policy in an amount not less than $500,000.00 per occurrence. The limits of said insurance shall not limit the liability of Lessee hereunder. 9.2 Property Insurance. Lessee shall obtain and keep in force during the term of this Lease a policy or policies of insurance covering loss or damage to the Premises and to the contents thereof, in the amount of the full replacement value thereof, as the same may exist from time to time,but in an amount not less than $500,000.00 Such insurance shall insure against all perils included within the classification of fire, extended coverage,vandalism,malicious mischief and special extended perils ("all-risk", as such terms is used in the insurance industry). Such insurance shall provide for payment of loss thereunder to Lessor. If Lessee should fail to procure and maintain said coverage, Lessor may, but shall not be required to,procure and maintain the saine, at the expense of Lessee. If such insurance coverage has a deductible clause,the deductible amount shall not exceed$1,000.00 per occurrence, and Lessee shall be liable for such deductible amount. 9.3 Insurance Policies. Insurance required hereunder shall be in companies holding a "General Policyholders' Rating" of at least B Plus, as set forth in the most current issue of "Best's Insurance Guide". Lessee shall deliver to Lessor copies of such policies or certificates evidencing the existence and amounts of same, with loss payable clauses as required by this Paragraph 8. No such policy shall be cancellable or subject to reduction of coverage or other modification except after thirty (30) days' prior written notice to Lessor. At least thirty (30) days prior to the expiration of each of such policies, Lessee shall furnish Lessor with renewals or "binders' thereof, or Lessor may order such insurance and charge the cost thereof to Lessee,which amounts shall be payable by Lessee upon demand. 9.4 Waiver of Subrogation_ Lessee and Lessor each hereby release and relieve the other, and waive their entire right of recovery against the other for loss or damage arising out of or incident to the perils insured against under Paragraph 8.1, which perils occur in, on or about the Premises, whether due to the negligence of Lessor or Lessee, or their agents,employees, contractors and/or invitees. ! -4 - r' 9.5 Indemnity. Lessee shall indemnify and hold harmless Lessor from and against any and all claims arising from Lessee's use of the Premises, or from the conduct of Lessee's business or from any activity, work or things done,permitted or suffered by Lessee in or about the Premises or elsewhere, and shall further indemnify and hold harmless Lessor from and against any and all claims arising from any breach or default in the performance of any obligation on Lessee's part to be performed under the terms of this Lease, or arising from any negligence of the Lessee, or any of Lessee's agents, contractors, or employees, and from and against all costs, attorneys' fees,expenses and liabilities incurred in the defense of any such claim,or any action or proceeding brought thereon; in any case or proceeding brought against Lessor by reason of any such claim, Lessee upon notice from Lessor shall defend the same at Lessee's expense by counsel satisfactory to Lessor/Lessee, as a material part of the consideration to Lessor, hereby assumes all risk of damage to property or injury to persons in, on or about the Premises arising from any cause, and Lessee hereby waives all claims in respect thereof against Lessor. 9.6 Exemption of Lessor from Liability. Lessee hereby agrees that Lessor shall not be liable for injury to Lessee's business or any loss of income therefrom or for damage to the goods,wares,merchandise or other property of Lessee, Lessee's employees, invitees,customers, or any other person in or about the Premises,nor shall Lessor be liable for injury to Lessee,or the person of Lessee's employees, agents or contractors,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, appliances,plumbing, air conditioning or lighting fixtures, or from any other cause,whether said damage or injury results from conditions arising upon the Premises, or upon other portions of the building of which the Premises are a part, (W or from other sources or places and regardless of whether the cause of such damage or injury or the means or repairing the same is inaccessible to Lessee. Lessor shall not be liable for any damages arising from any act or neglect of any other tenant,if any, of the building in which the Premises are located. 10. DAMAGE OR DESTRUCITON OF PRIIVIISES In the event that the Premises are partially damaged,this Lease shall continue and Lessee shall continue to pay the rent called for in the Lease, reduced by the amount, if any, that the use of the Premises is denied to Lessee. In the event of total destruction, Lessee shall be released from further obligation to perform under this Lease. The proceeds of any insurance which might be payable with regard to the Premises as a result of the total or partial destruction or damage thereof, shall be paid to Lessor for Lessor's use in restoration of the Premises. 11. REAL PROPERTY TAXES. 11.1 Payment of Taxes. In the event that real property taxes are assessed or assessable against the building in which the Premises is located, Lessee shall pay the proportion of said property tax which it would pay of the Operating Expenses according to its ratio of occupancy and use to the whole of the assessed parcel. Such payments shall be made to Lessor. If said tax assessment is a"possessory interest" tax as defined in Section 107 et. seq. of the State of California revenue and tax code, or any other code, the assessment shall be paid to the entity claiming the assessment. Any such tax payment shall be prorated to cover only the period of time within the tax fiscal year during which the Lease in in effect. - 5 - 11.2 Definition of'Real Property Tax". As used herein,the term "real property tax" shall include any form of real estate tax or assessment, general, special, ordinary or extraordinary, and any license fee, commercial rental tax, improvement bond or bonds,levy or tax (other than inheritance,personal income or estate taxes), imposed on the Premises by any authority having the direct or indirect power to tax, including any city, state or federal government, or any school, agricultural, sanitary, fire, street, drainage or other improvement district thereof, as against any legal or equitable interest of Lessor in the Premises or in the real property of which the Premises are a part, as against Lessor's right to rent or other income therefrom, and as against Lessor's business of leasing the Premises. The term "real property tax" shall also include any tax, fee,levy, assessment or charge (i)in substitution of,partially or totally, any tax fee,levy, assessment or charge hereinabove included within the definition of"real property tax", or(ii)the nature of which was hereinabove included within the definition of"real property tax", or(iii)which is imposed for a service or right not charged prior to the execution date hereof, or(iv)which is imposed as a result of a transfer, wither partial or total, of Lessor's interest in the Premises or which is added to a tax charge hereinabove included within the definition of real property tax by reason of such transfer, or(v) which is imposed by reason of this transaction, any modifications or changes hereto or any transfers hereof. 11.3 Personal Property Taxes. Lessee shall pay prior to delinquency all taxes, if any, properly due against and levied upon trade fixtures, furnishings,equipment or other personal property of Lessee contained in the Premises or elsewhere. When possible, Lessee shall cause said trade fixtures, furnishing,equipment and all other personal property to be assessed and billed separately from the real property of Lessor. 12. ASSIGNMII�'T AND SUBLEI'I�TG. Lessee shall not voluntarily or by operation of law assign, transfer,mortgage, sublet, or otherwise transfer or encumber any or all of Lessee's interest in this Lease or in the Premises, without Lessor's prior written consent, which Lessor shall not unreasonable withhold. Lessor shall respond to Lessee's request for consent hereunder in a timely manner and any attempted assignment,transfer, mortgage,encumbrance or subletting without such consent shall be void and shall constitute a breach of this Lease. Regardless of Lessor's consent,no subletting or assignment shall release Lessee of Lessee's obligations or alter the primary liability of Lessee to pay the rent and perform all other obligations to be performed by Lessee hereunder. Acceptance of rent by Lessor from any other person shall not be deemed to be a waiver by Lessor of any provision hereof. Consent to one assignment or subletting shall not be deemed to be consent to any subsequent assignment or subletting. In the event of default by any assignee of Lessee or any successor of Lessee, in the performance of any of the terms hereof, Lessor may proceed directly against Lessee, without the necessity of exhausting the remedies against said assignee. 13. DEFAULT;REMEDIES 13.1 Default. The occurrence of any one or more of the following events shall constitute a material default and breach of this Lease by the Lessee: (a) The vacating or abandonment of the Premises by Lessee. -6 - 1 (b) The failure by Lessee to make any payment or rent or any other payment required to be made by Lessee hereunder, including payments of Operating Expenses, as and when due, where such failure shall continue for a period of seven(7)days after written notice thereof from Lessor to Lessee. (c) The failure by Lessee to observe or perform any of the covenants, conditions or provision of this Lease to be observed or performed by Lessee, other than described in Paragraph (a) above, where such failure shall continue for a period of thirty (30) days after written motive thereof from Lessor to Lessee;provided,however,that if the nature of Lessee's default is such that more than thirty (30)days are reasonably required for its cure,then Lessee shall not be deemed to be in default if Lessee commences such cure within said thirty (30)days period and thereafter diligently prosecutes such cure to completion. 13.2 Remedies. In the event of any such material default or breach Lessee, Lessor may at any time thereafter,with or without motive or demand and without limiting Lessor in the exercise of any right or remedy which Lessor may have be reason of such default or breach. (a) Terminate Lessee's right to possession of the Premises by any lawful means,in which case this Lease shall terminate and Lessee shall immediately surrender possession of the Premises to Lessor. In such event, Lessor shall be entitled to recover from Lessee all damages incurred by Lessor by reason of Lessee's default, including, but not limited to: the cost of recovering possession of the Premises; expenses of re-letting, including necessary renovation and alternation of the Premises; reasonable attorneys' fees, any real estate coininission actually paid; the worth at the time to award by the court having jurisdiction thereof of the amount by which the unpaid rent for the balance of the term after the tune of such award exceeds the amount of such rental loss for the same period that Lessee proves could be reasonably avoided. (b) Maintain Lessee's right to possession in which case this Lease shall continue in effect whether or not Lessee shall have abandoned the Premises. In such event, Lessor shall be entitled to enforce all or Lessor's rights and remedies under this Lease, including the right to recover the rent as it becomes due hereunder. (c) Pursue any other remedy now or hereafter available to Lessor under the laws or judicial decisions of the State of California. Unpaid installments of rent or other unpaid monetary obligations of Lessee under the terms of this Lease shall bear interest from the date due at the maximum rate then allowed by law. 13.3 Default by Lessor. Lessor shall not be in default unless Lessor fails to perform obligations required of Lessor within a reasonable time, but in no event later than thirty (30) days after written notice by Lessee to Lessor. If the nature of Lessor's obligation is such that more than thirty (30) days are required for performance, then Lessor shall not be in default if Lessor commences performance within such thirty (30) day period and thereafter diligently prosecutes the same to completion. - 7 - G 0 13.4 Late Charges. Lessee hereby acknowledges that late payment by Lessee to Lessor of rent, or any other sums due hereunder will cause Lessor to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. Accordingly,if any installment of rent or any other sum due from Lessee shall not be received by Lessor or Lessor's designee within ten(10)days after such amount shall be due, then, without any requirement for notice to Lessee, Lessee shall pay to Lessor a late charge equal to six percent(6%) of such overdue amount. The parties hereby agree that such late charge represents a fair and reasonable estimate of the costs Lessor will incur by reason of the late payment by Lessee. 14. TERMIIVATION. Either party shall have the right to terminate this agreement, with or without cause, with 60-day written notice given to the other, but in no case shall Lessee terminate this agreement within 180 days from the commencement of this agreement as specified in Section 3 above. 15. CONDEMNATION. If the Premises or any portion thereof are taken under the power of eminent domain, or sold under the threat of the exercise of said power (all of which are herein called "condemnation"), this Lease shall terminate as to the part so taken as the date the condemning authority takes title or possession, whichever first occurs. If more than ten percent (10%) of the floor area of the Premises is taken by condemnation, Lessee may, at Lessee's option, to be exercised in writing only within ten(10)days after Lessor shall have given Lessee written notice of such taking (or in the absence of such notice within ten (10)days after the condemning authority shall have taken possession)terminate this Lease as of the date the condemning authority takes possession. Ar If Lessee does not terminate this Lease in accordance with the foregoing, this Lease shall remain in full force and effect as to the portion of the Premises remaining,except that the rent and Operating Expenses shall be reduced in the proportion that the floor area of the Premises taken bears to the total floor area of the Premises. Any award for the taking of all or any part of the Premises under the power of eminent domain or any payment made under threat of exercise of such power shall be the property of Lessor,whether such award shall be made as compensation for diminution in value of the leasehold or for the taking of the fee, or as severance damages; provided,however, that Lessee shall be entitled to any award for loss or damage to Lessee's trade fixtures and removable personal property. 16. LESSOR'S LIABII.TI'Y. The term "Lessor" as used herein shall mean only the owner or owners at the time in question of the fee title or of a Master lease of the entire building wherein the Premises is located, and in the event of any transfer of such title or interest, Lessor herein named (and in case of any subsequent transfers then the grantors) shall be relieved from and after the date of such transfer of all liability as respects Lessor's obligations thereafter to be performed,provided that any funds in the hands of Lessor or the then grantor at the time of such transfer, in which Lessee has an interest, shall be delivered to the grantee. The obligations contained in this Lease to be performed in this Lease by Lessor shall, subject as aforesaid,be binding on Lessor's successors and assigns, only during their respective periods of ownership. 17. SEVERABHJTY. The invalidity of any provision of this Lease as determined by a court of competent jurisdiction shall in no way affect the validity of other provisions hereof. - 8 - r-- 18. ADDITIONAL RENT. Any monetary obligations of Lessee to Lessor under the terms of this Lease shall be deemed to be rent. 19. INCORPORATION OF PRIOR AGREEIVIEN -A ffWD H'IS This Lease contains all agreements of the parties with respect to any matter mentioned herein. No prior agreement or understanding pertaining to any such matters shall be effective. This Lease may be modified only in writing, signed by the parties in interest at the time of the modification. 20. NOTICES. Any notice required or permitted to be given hereunder shall be in writing and may be given by personal delivery or by certified mail, and if given personally or by mail, shall be deemed sufficiently given if addressed to Lessee or to Lessor at the address as follows: If to Lessor: Economic Development Agency of The City of San Bernardino Attention: Agency Administrator 201 North "E" Street,Third Floor San Bernardino, California 92401 If to Lessee: Mr. Allan Evenson Riverside Civic Light Opera 4800 Magnolia Avenue Riverside, CA 92506 Either party may, by written notice to the other party, specify a different address for notice purposes, except that Lessee's address for notice purposes shall remain as above stated, so long as Lessee is in the possession of the Premises. 21. WAIVERS. No waiver by Lessor of any provision hereof shall be deemed a waiver of any other provision hereof or of any subsequent breach by Lessee of the same or any other provision. Lessor's consent to, or approval of, any act shall not be deemed to render unnecessary the obtaining of Lessor's consent to or approval of any subsequent act by Lessee. The acceptance of rent hereunder by Lessor shall not be a waiver of any preceding breach by Lessee of any provision hereof, other than the failure of Lessee to pay the particular rent so accepted,regardless of Lessor's knowledge of such preceding breach at the time of acceptance of such rent. 22. HOLDING OVER_ If Lessee,with Lessor's consent,remains in possession of the Premises or any part thereof after the expiration of the term hereof, such occupancy shall be a tenancy from month to month upon all the provisions of this Lease pertaining to the obligations of the Lessee, but all options and rights of first refusal, if any, granted under the terms of this Lease shall be deemed terminated and be of no further effect during said month to month tenancy. Said month to month tenancy may be terminated by either party upon thirty(30)days' written notice. 23. SUBORDINATION This Lease, at Lessor's option, shall be subordinate to any ground lease,mortgage, deed of trust or any other hypothecation or 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. Notwithstanding such subordination, Lessee's right to quiet possession of the Premises shall not be disturbed if Lessee is not in default and so long as Lessee shall pay the rent and observe and perform all of the provisions of this Lease, unless this Lease is otherwise terminated pursuant to its terms. Lessee agrees to execute any documents required to affectuate an attornment, a subordination or to make this Lease prior to the lien of any mortgage, deed of trust or ground lease, as the case may be. -9 - Lessee's failure to execute such documents within ten (10) days after written demand shall constitute a material default by Lessee hereunder or, at Lessor's option, Lessor shall execute such documents on behalf of Lessee as Lessee's attomey-in-fact. Lessee does hereby make, constitute and irrevocably appoint Lessor as Lessee's attorney-in-fact and in Lessee's name,place and stead, to execute such documents in accordance with this paragraph. 24. ATTORNEYS'FEES. If either party to this Lease brings an action to enforce the terms hereof or declare rights hereunder, the prevailing party in any such action, on trial or appeal, shall be entitled to its reasonable attorneys' fees to be paid by the losing party as fixed by the court. 25. LESSOR'S ACCESS Lessor and Lessor's agents shall have the right to enter the premises at reasonable tunes for the purpose of inspecting the same, showing the same to prospective purchasers,lenders or lessees, and making such alterations,repairs, improvements or additions to the Premises or to the building of which they are a part as Lessor may deem necessary or desirable. 26. SIGNS Lessee shall not place any sign upon the Premises without Lessor'prior written consent. 27. MERGER. The voluntary or other surrender of this Lease by Lessee, or a mutual cancellation thereof, or a termination by Lessor, shall not work a merger, and shall, at the option of the Lessor, terminate all or any existing subtenancies or may, at the option of Lessor, operate as an assigmnent to Lessor of any or all of such subtenancies. 28. QUIET POSE ION. Upon Lessee paying the rent for the Premises and observing and performing all of the covenants, conditions and provisions on Lessee's part to be observed and perfonned hereunder, Lessee shall have quiet possession of the Premises for the entire term hereof, subject to all of the provisions of this Lease. The individuals executing this Lease on behalf of Lessor represent and warrant to Lessee that they are fully authorized and legally capable of executing this Lease on behalf of Lessor and that such execution is binding upon all parties holding an ownership interest in the Premises. 29. PARKING. Lessor agrees to provide access to parking for Lessee and its employees proportional and equal to the same terms regarding location and reserved spaces as said Lessor's parking entitlements. 30. FAC X]rY ACCESS• USE OF FA .S. Lessee shall have the right of access and entry onto the premises twenty four(24)hours per day during the entire calendar year and term of this lease. Lessor shall reserve the right to limit said access only in the event of emergencies and/or maintenance,emergency or otherwise. Denial of access shall only be partial and shall not constitute a breach of terms and/or conditions of Lessee's lease agreement. Lessor shall provide diligent and adequate repairs to limit any excessive liability for the restriction of access. 31. BUII.DING REGULATIONS Lessee agrees that it will abide by,keep and observe all reasonable rules and regulations which Lessor may make, from time to time, for the management, safety, care and cleanliness of the building and the grounds, including regulations regarding parking, if applicable, which regulations are for the preservation of good order in the building and for the convenience of other occupants and tenants of the building, as well as Lessee. The violation of any such rules and regulations shall be deemed a material breach of this Lease by Lessee. - 10- r. 32. AUTHORITY TO ACT FOR LESSOR. It is understood and acknowledged that Lessor shall act by and through the authority of, and actions taken on behalf of Lessor shall be exercised by, the Executive Director of the Redevelopment Agency of the City of San Bernardino. All approvals, consents and other actions, required by Lessor hereunder shall be taken by the Executive Director in his sole discretion. 33. APPROVAL OF LEASE. It is understood and agreed that this Lease is subject to the approval of the respective legislative bodies of the parties hereto. 34. TELEPHONE AND COMPUTER CABLIN G. Lessee shall, at its own expense, cause the installation of all necessary telephone and computer cabling. Lessee shall be solely responsible for obtaining its own telephone and computer systems,which shall be purchased,installed and generated at Lessee's sole expense. i 35. KEY TO BUILDING. Lessee shall be provided with only one (1)key to each door of the Premises. Lessor retains the right to retain, in a locked file, additional copies of original keys for emergency access to Premises. Said key shall be maintained in the possession of the Executive Director of Lessee or his or her designee. WHEREFORE, the parties hereto, in consideration of the conditions, covenants and promises contained herein,vabe executed this Agreement as indicated. REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO Executive Director By: ATTEST: Agency Secretary BY: Allen Evenson General Manager Riverside Civic Light Opera APPROVED AS TO FORM: Agency Council 2973J r.