VICALE, LLC AND ALDA SOUTH, LLC (2)-2016

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°�N-2416-179 �, qQ 2 i 2018 RENTAL AGREEMENT Or. ,,._/„ . (Loss of Rents) This AGREEMENT, made and entered into this /stday of Nupernber , 2016 by and between the property owners VICALE LLC, and ALDA SOUTH, LLC (together as "Owner"), and the CITY OF SANTA ANA, a charter city and municipal corporation duly organized under the Constitution and laws of the State of California ("City"). WHEREAS, Owner and City are in negotiations for City's acquisition from Owner of certain real property located in the City, which is legally described in Exhibit A, attached hereto and incorporated herein ("Subject Property"), WHEREAS, the Subject Property consists of two lots of real property commonly known as 2240 S. Bristol Street (408-471-06). WHEREAS, 2240 S. Bristol Street is a commercial property operated by Conroy's Flowers. WHEREAS, Owner and City desire to agree that, in the event the tenant occupying the Subject Property vacates that property, Owner will not re -rent that property and City will make a monthly payment to Owner to compensate Owner for Owner's loss of rents, in the amount of $8,432 per the current lease agreement between the Owner and the tenant. WHEREAS, it is the desire of the City to minimize or avoid incurring costs, damages, obligations or liabilities pursuant to any applicable federal, state or local relocation laws or regulations, including without limitation, the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, 42 'C1.S.C. 4201-4655, the implementing regulation thereto set forth in 49 CFR Part 24, Government Code Section 7260, et seq. and/or the implementing regulations thereto set forth in Title 25, section 6000, et seg. of the Code of Regulations (collectively "Relocation Costs") as a result of City's acquisition of the Subject Property, or any portion thereof, and Owner desires not to lose rental income during the period of negotiations between Owner and City for City's acquisition of the Subject Property. NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, the City and the Owner agree as follows: I. The City will pay directly to Owner on the first of each month in the event the Subject Property becomes and remains vacant, the amount of $8,432. No "Lost rent" compensation will be payable to Owner unless and until the Subject Property becomes and remains vacant, Owner is not otherwise receiving rent from its tenant(s) or otherwise, and Owner complies with the notice provisions set forth herein. "Vacation Date" is the date upon which Conroys Flowers legally and physically vacates the Subject Property, and the Owner no longer receives compensation for rent for the Subject Property The payment provided to Owner pursuant to this agreement is intended to compensate Owner for the Owner's lost rents from 2240 S. Bristol Street beginning on the Vacation Date stated in Section I above and ending on the termination of this Agreement as stated in Section 9 below. 2. Owner will promptly notify the City, in writing, if the tenant occupying the Subject Property provides notice to Owner of such tenant's intent to terminate its rental agreement and/or vacate Subject Property and/or if such tenant actually vacates Subject Property. 3. In consideration for the payments to be made under this Agreement, Owner will hold the Subject Property vacant and not re -rent or allow any occupancy of the Subject Property.