HomeMy WebLinkAboutCOMMUNITY REDEVELOPMENT AGENCY A-2_o01 _ 0 (p (o
SECOND LEASE AMENDMENT 1
THIS LEASE AMENDMENT is made and entered into this day of /r f{i.I ,
2004,by and between the COMMUNITY REDEVELOPMENT AGENCY OF THE
CITY OF SANTA ANA, a public body, corporate and politic("Lessor"), and
CALIFORNIA STATE UNIVERSITY,FULLERTON FOUNDATION,a California
non-profit public benefit corporation("Lessee"), in reference to that certain LEASE
AGREEMENT between the parties hereto dated June 19, 1995,as amended on or about
July 20, 1998 (the"Lease").
RECITALS
A. Landlord and Lessee entered into the Lease for the purpose of rehabilitating the
Premises to be used as an arts facility for the Cal State Fullerton graduate arts
program.
B. Landlord and Lessee desire to amend the Lease to clarify the commencement date
and add twenty(20)years to the term of the Lease.
C. Landlord desires to provide an additional subsidy to Lessee in return for its
agreement to extend the Lease term.
D. Landlord and Lessee desire and to add to the Lessee additional rights to request a
termination of the Lease.
E. Landlord desires to assign the fee simple interest in the Premises to the City of
Santa Ana("City"), and Lessee consents to this assignment subject to the City's
assumption of all the Landlord's obligations and compliance with all terms and
conditions of this Lease.
Now therefore, the Parties agree as follows:
1. Clarification of Commencement Date and Modification of Lease Term.
Section 4(a)of the Lease is hereby amended in its entirety to read as follows:
"Commencement Date. The Commencement Date of this Lease shall be January 1,
1999."
Section 4(b) of the Lease is hereby amended in its entirety to read as follows:
"The initial term("Initial Term") of this Lease shall be for thirty(30)years,
commencing on the Commencement Date, and ending on the date thirty(30)years
thereafter,unless sooner terminated as hereinafter provided."
2. Additional Operating Subsidy.
Paragraph 16(h)is added to the Lease to read as follows:
"(h)Additional Assistance in payment of Operating Losses.
"Each calendar year beginning with 2003,Landlord shall pay Lessee the following
additional operating subsidy:
"2003 $80,000
"2004$75,000
"2005 $70,000
"2006 $65,000
"2007 $60,000
"This additional subsidy shall be paid not later than December 1 of each year
specified above,and shall be deposited by Lessee in the Special Account specified in
paragraph 16(c), above.Notwithstanding the foregoing,the subsidy for 2003 will be paid
to Lessee on or before May 1,2004.
"Landlord and Lessee further agree to meet and confer to discuss whether this
provision should be further amended upon written request of Lessee made on the grounds
that support given to Lessee by the Trustees of the California State University, or the
administration of California State University at Fullerton,has materially diminished or
been eliminated; or the Lessee's costs associated with the Premises have materially
increased."
3. Early Termination of the Lease.
Section 4(d)(ii)of the Lease is hereby amended to add the following to the end of this
paragraph:
"Commencing in Year 16 (i.e.,on January 1,2015)through Year 30 (i.e., January 1,
2029)Lessee may request that the Landlord's executive body(i.e.,the Agency Board or
City Council if the Lease has been assigned pursuant to paragraph 4 below)terminate this
lease upon one year's notice due to economic hardship or other unforeseen circumstances,
which request shall not be unreasonably denied."
4. Consent To Assignment to City of Santa Ana.
Landlord and Lessee agree that the Landlord may assign this Lease to the City of Santa
Ana("City")as part of the City's acquisition of the Premises without any further
approval by Lessee;provided,however,that the City shall assume all of Landlord's
obligations and comply with all terms and conditions of this Lease. Landlord agrees that
upon such assignment to the City,a copy of the assignment will be provided to the
Lessee.
5. Effect of Amendment.
Except as necessary to implement the intent of this Lease Amendment,this Lease shall
remain in full force and effect.
IN WITNESS WHEREOF,LESSOR and LESSEE have executed this Lease Amendment
the day and year first above written.
COMMUNITY REDEVELOPMENT
AGENC OF THE CITY OF SANTA ANA
Patricia E. Healy
Secretary By
Jo . Reekstin
1 E ecutive Director
APPJtOVE AS O FORM:
Jcis1�h W. etch
cy Legal Council
CALIFORNIA STATE UNIVERSITY,
FULLERTON FOUNDATION,a California
non-profit public benefit corporation
BY: (11S, 414.
William M. Dickerson
Executive Director