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C~ Y OF SAN BERNARli.tjO - REQU~ JT FOR COUNCIL A' ..iON
From:
ROGER G. HARDGRAVE, Directorc ~'DU\U nFbf..
REef ." ~ "" n. Su Ject:
Public Works /Engineering \9aB nEe...8 p~ 4: oS
November 29, 1988
Resolution authorizing and directing
execution of Second Amendment to Lease
and Consent to assignment for property
on Northeast corner of Waterman ve.
and Gilbert Street.
...ept:
Date:
Synopsis of Previous Council action:
06-21-76 --- Resolution No. 12647 was adopted authorizing the execution of as
Lease Agreement.
12-22-86 --- Resolution No. 86-521 was adopted, authorizing the execution of
First Amendment to Lease.
Recommended motion:
Adopt Resolution
cc: Jim Robbins, Acting City Administrator
James Penman, City Attorney
, / 1%~
\~~UW/~
Signature
Contact person:
Les Fogassy
Phone:
5334
Supporting data attached:
staff Report, Resolution
Ward:
2
FUNDING REQUIREMENTS:
NONE
Amount:
Source: (Acct. No.)
N/A
(Acct. DescriPtion)
Finance:
"':ouncil Notes:
75-02b2
Agenda I tern No.
.2/
CI.~ ,. OF SAN BERNARD..40 - REQUl ;T FOR COUNCIL AC.. ,j'ON
STAFF REPORT
On June 21, 1976, Resolution No. 12467 was adopted, authorizing the execution of a
lease agreement between the City, as Lessor, and Albert M. Gallo, as Lessee, for the
old fire station building located at the Northeast corner of Waterman Avenue and
Gilbert street.
That lease was for a term of ten years. Pursuant to said agreement, lessee has the
option of renewing the lease for an additional three five year terms. Lessee has
exercised his option for the first renewal, and Resolution No. 86-521, adopted on
December 22, 1986, authorized the execution a First Amendment to Lease, extending the
lease for an additional five years.
Two additional renewal terms of five years each, remain on this lease. The current
renewai term expires on June 30, 1991, thus, Lessee has the option of leasing the
premises until the year 2001. The rental payments are set forth in the original lease
agreement. The current rate is $400.00 a month, with each renewal increasing the
payment by $50.00 per month.
The lessee recently contacted this department, and advised us of his intention to sell
his florist business, and requested that an assignment of the lease be granted. In
consideration of the City granting approval for the assignment, the lessee submitted a
proposal for an amendment to the lease, shortening the lease to five years with no
renewal options, and the increase of rental payments to $1,000.00 per month. This
department has obtained a financial statement from the proposed assignee, a copy of
which is attached hereto.
Based on
and that
but also
that the
Amendment
the fact that the current lease encumbers the property for another
the assignment of the lease not only shortens this encumbrance to
substantially increases the rental payments for the premises, we
attached resolution , authorizing and directing the execution of
to Lease, and Consent to Assignment, be approved.
13 years
5 years,
recommend
a Second
11-29..88
75-0264
PERSONAL FINANCIAL J (A TEMENT
(DO NOT USE FOR BUSINESS)
Aui n~t_
'??
I' RR
~.... at
IIr.u:tl
.....
Yonsuk Son
1128 D. Oxford Dr..
bployed by
To wn P.
.C:::hnT"l~~ T.; qlln'P"
t:!.J. N...of
&9.~Spou..
v.... 1
Ad*-.
Redlands.
CA
PooiU_
HUan Tn
U ~l ,ed Le.a on-
IY_.PNviouaElaployw owner of Sea Tp.l"''P''::I~~ I'(.k-+
TIle uncIenl..-l. for tbo purpoee of Proeurtnc and e.tabllolllnc credit from time to time wltll yoU and to Induce you to permit the underalped to be-
- IDdebted to ,ou on note.. endoreemenu. I'\I&I'Ult-. overdrafu or otlle",I... fuml.lle. tile followlnc (or In Il.u thereof tile attaclled) wlllcll I. tile
moat _at .tatomeat prepared by or for tile under.lcned .. belne a full. true and correct .tatement of tile ftnanclal condition of tile und,ralcned on the
date IDdbled. and -.reo. to notlf, you Immedlatel, 0' tile extent and cllaracter of any materl&l chance In aald ftnanclal condition. and &loo acree. tllat
If tile uDd...lcn.... or an, eadoreer or cuarantor of any of tile obllcatlon. of tile under.lcned. at any time fall. In bu.lne.a or becomea Inaolvent. or com-
mlto an act of bankruptcy. or die.. or If a writ of attachment. camlahment. execution or otller leclll proce.. be luued &calnat propert, of tile underalcned
or If an, ....'.....at for lase. acalnat the underalcned. otller tllaa tUea on real property. I. m.de by tile federal or atate COVemmeat or any department
tboreof. or If an, of tile repN..ntatlona made below prove to be untrue. or If tile underalcned faUa to notify )'ou of an, material cllaace .. above &Creed.
or If aucIa cbaace ocelU'll, Gr if tile bualr.cu. 01' any !ntere,t tlle,...!n. of the Un~el'alped I. aold. then and In .uch cue. all of tile obllcatlon. of the under-
IIlpled to you or held b, 'OU .1l&Il Immedlatel, bI due and payabl.. without demand or notice. Tille atatement all&1I be conetrued by you to be a conUnuin;
otat_t of tile conditloa of the uDdenlcned. and a now and orl&1nal atatement of all a...t. and lIabUltle. upon eacb and every traaaactlon In and by
willa tile UDdenlcned.lRil'fttter become. Indebted to 'ou. until the undenlped advl_ In wrltlnc to tile contrary.
ASSETS DOl.l..ARS c...t. LIABILITIES DOLLARS coni.
Co.. in II of BanK 0 I AIDe r~ ca .l.Z UUU Not.. payabl. B ot I
(Ikonch) IBranch) I
Co'" i 1 ~;;! vi Igq 1(')(') (')(')(') Not.. p.yabl.
(Other-9iv. n_.) (Oth.r)
Acc_t. Roc.iv.ltl.-Goocl Account. payaltl. Dept. Stores 60c
Stacka an. Bon.. (Sch.dul. II) T.... payable
Net.. R.oM ..Itl.-Goocl Grand terrace mk1 10 000 C_tract. payable
ITo wh_)
( a._.er V.lu. Ufo In.u_c. e; I()()() Contr.ct. payable
Auto. ()l n ~ ,,q c: F'1"'ll"''' tfi~ 1 c: I()()n (To wh_,
R..I E.tot. Ind.bt.cIn... (Schedul. Al
(V.......ak.) (V_-W..)
l"'o~;npnC'~ & IR()() In()() I Oth.r Li.biU ti.. I d.. crab.)
Real E.t.t. (Scb.dul. A)
Oth.r A...t. (deoorib.) ~ v,au,,,, .L-~.L d..L Autos Q oar
- . +1l'P"P. le; I()()() 1.
1. 2.
2. O'f"Iln .c:; lvp-r 40 000 3.
3. 4:
4. TOTAL UABIUTIES Q 60
5. NET WORTH 1 002 40
TOTAL ASSETS $ 1.017 000 TOTAL
ANNUAL INCOME
and ANNUAL EXPENDITURES (E.cludin9 Ordinary livin9 ..p......)
Salary 10 000 ".01 E.t... pay.ent 1.1
Sa!arv (wlf. or hu.bondl "...t ~ ~() l:
lecuriU.. Inc_. 1 e; ()()() Inc_. Ta...
Rental. In.ur_c. Pr.alu.. .., , Qt'
Oth.r (d..erilt.1 Property T....
1. Oth.r (d.acrib.-includ. inat.laent pay...ta .
2. oth.r thon r..1 .0tet.1
3. 1. car navments e; 2?r
4. 2.
S. 3.
TOT AL INCOME r~ 000 TOTAL EXPENDITURES ' LL Of') l:
-
LEU-TOTAL EXPENDITURES
NET CASH INCOME 30 '095
l...luoi.. of orclinary livln9 ..p.....)
nffANClAL STATEMENT - Individu.1 - WOLCOTTS Fo,. 2000
.:- Z~-BB
... _ia tIU ~ - T t _ia jalat ......"
YP~
N-.of etMrPwty Huan In
.... ,.. Well III all'"
~ ,.. . ...._ an .,...... ...., no
If _. ti... .-..0.
;.- -r ~... .... - ~ __ eIIDept _lMlc:atecn
no
If _. JM- 1--.. .., debt eel MQlrity
CD,....... My'" "-1_- -u.n., no
If _. ti... cletail.
An ~ My ault. _ j~ta CIfIIinat ,..,
no
Any.........'
.... ,.. __ a wW?
...... ,.. .... ~ banknlptay _ ~.. a debt?
yes
no
Numbar of dill InMilta
one
SCHEDULE A-REAL ESTATE
l.occItlan _ type Utl. E.U.at.d A.ount To -.-~.
of ~_t in N-. of Valu. Owint
"Seoul.,; ~9r~~onertv . .
R(')(') (')(')(') 0
SCHEDULE B-STOCKS AND BONOS
I'fwab. of ..... Dnc:ripu- o.n.at ....et Eau-t.cl Value
~t of 8Dnda an Ltllted an twlllted
. .
,
U .....tiGnal ..... 18 neaded lor ~ A _eII_ ScMdWe B. Uat an aeparat. ahMt ed attcIc:h.
INSURANCE
l..U. __ .
~ of (" -,,_y
s.nailcley
~.~cel
Publ1c Liability - Y.. 0 110 0
""1 41..Millll... perllCll'lCll LiaWllty-,... 0
no 0
PnIperty o-a.,. - ye. 0
1100
ST.A'l'DENr OF BANK OFftCER:
Inaofar .. _ ~ rwwal. thi. f\nanc:lal ~t i. accurat. _d
true. The fONlJlIin9 atat-.at i. (a CIllpy of) the OIialna1,_9'ed .., the maker,
ia the erMit m.. of thl. bank.
1M uncteral9led certlfi.. that the .... atat~t ( _ in U... th~. th
attachecI at~t, .. the c-. BIlly be) and ~ achecIul_, both print.
ed written, ti... a full, true, and ClOINCt atat-.at of the flnanclal condition
of the undara.. .. of the date lncIicatecL
Auiatant Caahl.. ManClger
.",:'"; - .2;; I~'.J 1
Dat. _..
1
RESOLUTION NO.
2 A RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND
DIRECTING THE EXECUTION OF A SECOND AMENDMENT TO LEASE AND CONSENT TO
3 ASSIGNMENT RELATIVE TO A LEASE WITH ALBERT M. GALLO AND KATHRYN C. GALLO.
4 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO AS FOLLOWS:
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
5
6
SECTI ON 1 .
The Mayor of the City of San Bernardino is hereby
authorized and directed to execute on behalf of said City, a Second
7
Amendment to Lease with Albert M. Gallo and Kathryn C. Gallo for the City
owned property located on the Northeast corner of Waterman Avenue and
Gilbert street, and a Consent to Assignment, copies of which are attached
hereto, marked Exhibit "A" and Exhibit "B" respectively, and incorporated
herein by reference as fully as though set forth at length.
I HEREBY CERTIFY that the foregoing resolution was duly adopted by
the Mayor and Common Council of the City of San Bernardino at a
_______________ meet ing
thereof
held
on the
day
of
, 19
, by the following vote, to-wit:
AYES: Council Members
_._---_._~----- _.... --------.-------.----.-- ---.-.--.----------------------- ,-----.---
NAYS:
_n_'_'___'_"" _._.___.... -- -...'--. -----------.------------.--..--..-----.---- ----------- .--. ---.---- -. --.----..---
ABSENT:
--..,-."-----.. ------ -_..~-. ---..-- - ---- ----..---.--------.---------------------------------
City Clerk
The
foregoing resolution is hereby approved this
day
of , 19
Evlyn Wilcox, Mayor
City of San Bernardino
Approved as to form
28 and I egal content:
SECOND AMENDMENT TO LEASE
(Fire Station - Waterman and Gilbert)
THIS SECOND AMENDMENT TO LEASE, effective January 1, 1989,
is entered into between the CITY OF SAN BERNARDINO, a municipal
corporation, hereinafter called "Lessor", and ALBERT M. GALLO and
KATHRYN C. GALLO, hereinafter called "Lessee".
The parties agree as follows:
1. Recitals.
WHEREAS:
A. On July 7, 1975, Lessor and Lessee entered
into a ten-year lease for premises located at 1505 North Waterman
Avenue, San Bernardino ("premises").
B. Pursuant to the terms of the lease, Lessee had
the option of renewing the lease for an additional five-year
period for a total rent of $400.00 per month and said option was
exercised by Lessee, as evidenced by First Amendment to Lease,
effective July 1, 1986.
C. Lessee currently has the option of two
additional renewals for a period of five years each, upon
fulfilling each renewal term. Subsequent rents are to be $450.00
per month and $500.00 per month, respectively, during each five-
year period.
D. Pursuant to paragraph 19 of said Lease
Agreement, Lessee shall not assign this lease or sublet the said
premises or any part thereof without obtaining the prior written
consent of the Lessor.
JFW:ss
December 8, 1988
1
EXHIBIT "A"
E. Lessee wishes to assign the Lease Agreement.
THEREFORE, it is agreed that the Lease Agreement
shall be amended as follows:
2. Insurance. Paragraph 16 of said Lease Agreement is
amended to read as follows:
"16. Insurance. Lessee agrees to procure and maintain
in force during the term of this lease and any extension thereof,
at its expense, a pOlicy or pOlicies of insurance against loss
or damage to he leased premises, and appurtenances and permanent
equipment, resulting from fire, lightning, vandalism, malicious
mischief, and such perils ordinarily defined as "extended
coverage" and other perils in a minimum amount of $100,000.
Lessee agrees to procure and maintain in force during the term of
this lease and any extension thereof, at its expense, public
liability and property damage insurance in companies and through
brokers approved by lessor, adequate to protect against liability
for damage claims through public use of or arising out of
accidents occurring in or around the leased premises, and
property damage in a minimum amount of $500,000 combined single
limit.
Such insurance pOlicies shall name the Lessor, its
officers, agents and employees as additional insureds.
Lessor
shall furnish Lessee, concurrently with the execution hereof,
with satisfactory evidence of the insurance required, and
evidence that each carrier is required to give City at least ten
(10) days' prior notice of the cancellation or reduction in
coverage of any policy during the effective period of this lease.
Lessee agrees that, if such insurance policies are not kept in
JFW:ss 2
December 8, 1988
force during the entire term of this lease and any extension
thereof, Lessor may procure the necessary insurance, pay the
premium therefor, and that such premium shall be repaid to Lessor
as an additional rent installment for the month following the
date on which such premiums are paid."
3. Amendments.
Paragraph 19 of said Lease Agreement is amended to
read:
"19.
Assignment.
Lessee shall not
assign this lease or sublet said premises or
any part thereof, without obtaining prior
written consent of the Lessor.
The parties
agree that in consideration of an agreement
to the assignment of said Lease by the
Lessor, the terms of the lease shall be
first amended as follows:
1. The term of the Lease shall be for a
period of 60-months commencing upon the
execution of an assignment of said lease.
2. Rent for the 60-month Lease term
shall be for the amount of $60,000.00,
payable at a rate of $1,000.00 per month,
commencing on the day of the execution of
said assignment, and payable by the first day
of each month thereafter.
3. Lessee, or any assignee, shall have
no options to extend the Lease term beyond
JFW:ss
December 8, 1988
3
the 60-month period, but rather the terms of
any tenancy beyond the 60-month period shall
be negotiated by the parties. This provision
does not require the Lessor to enter into
any further Lease Agreements following the
expiration of this agreement.
4. If, after a completed assignment of
this lease, Lessee recovers possession of the
florist business from the Assignee, then this
Lease shall continue as amended.
By such
repossession, Lessee shall be deemed to have
taken a reassignment of the Lease under the
terms as amended by this Second Amendment to
the Lease. Nothing contained herein shall be
construed as preventing the Lessor from
discontinuing this Lease for breach of the
covenant to make timely payment of the rental
fees, or for breach of any other covenant
contained in the Lease, without prior notice
to Lessee."
5. If this lease is not assigned on or
before December 31, 1989, the provisions of
this Paragraph 3 of the Second Amendment to
lease shall be of no further force and effect
and the applicable provisions shall be those
found in the Lease and the First Amendment to
Lease.
JFW:ss
December 8, 1988
4
4.
other Provisions.
All amendments as set forth
herein are hereby deemed to be in full force and effect as to any
assignee of said Lease and are a part of any Lease assigned by
the present Lessee.
All other terms and conditions of the First Amended
Lease shall remain in full force and effect, except for those
conditions and terms superseded by this Second Amendment.
IN WITNESS WHEREOF, the parties hereto have executed
this Second Amendment to
Lease,
this
day of
, 19
"Lessor"
CITY OF SAN BERNARDINO
ATTEST:
BY:
Evlyn Wilcox, Mayor
City of San Bernardino
City Clerk
"Lessee"
Albert M. Gallo
Kathryn C. Gallo
Approved as to form and
legal content:
~AttorneY
JFW:ss
December 8, 1988
5
ASSIGNMENT OF INTEREST IN LEASE AGREEMENT
(Fire Station --- Waterman and Gilbert)
Albert M. Gallo and Kathryn C. Gallo, being the Lessees
under that certain Lease Agreement entered into on the 7th day of
July, 1976, and all amendments thereto, between Lessee and the
City of San Bernardino as Lessor, do hereby assign, set over and
transfer unto Yonsuk Son, all right, title and interest which
they have or may claim to have in and under by virtue of said
Lease Agreement. Yonsuk Son shall hereafter be the sole Lessee.
Yonsuk Son, by acceptance of this assignment, does
agree to hold harmless Albert M. Gallo and Kathryn C. Gallo from
all further responsibility and liability under said Lease
Agreement.
This Assignment is subject to approval by the Mayor
and Common Council of the City of San Bernardino, and this
assignment is not valid until consent to this agreement is
obtained in writing from the City of San Bernardino.
IN WITNESS WHEREOF, the parties have executed this
Assignment this
day
of _________________________,
19
ACCEPTED:
Albert M. Gallo, Assignor
Yonsuk Son, Assignee
Kathryn C. Gallo, Assignor
JFW:ss
November 29, 1988
1
EXtllBI T "B"
CONSENT TO ASSIGNMENT BY CITY OF SAN BERNARDINO
(Fire Station --- Waterman and Gilbert)
PURSUANT TO A RESOLUTION by the City of San Bernardino
heretofore duly adopted, the City of San Bernardino hereby
consents to the Assignment and transfer of all right, title and
interest as set forth above, this __________day of
, 19
CITY OF SAN BERNARDINO
ATTEST:
Evlyn Wilcox, Mayor
City of San Bernardino
City Clerk
Approved as to form and
legal content:
JFW:ss
November 29, 1988
2