HomeMy WebLinkAboutLENNAR HOMES, INC. 1
INSURANCE NUT ON fiLE
WORK MAytiOI PROCEED
CLERK OF COUNCIL
DATE~ 8-4-05
A-2005-034
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D: Ct>A-
(C.I1.JI~)
LEASE AGREEMENT
BETWEEN
THE CITY OF SANTA ANA
AND
LENNAR HOMES, INC.
THIS AGREEMENT ("Agreement") is made and entered into this ~ day of
February, 2005, by and between the City of Santa Ana, a charter city and municipal
corporation, duly organized and exiting under the constitution and laws of the State of
California, herein referred to as "Landlord", and Lennar Homes of California, Inc, a
California Corporation, herein referred to as "Tenant".
The parties hereto agree as follows:
ARTICLE 1 - TERM OF LEASE
Section 1.01 Premises and Use
(a) Landlord owns the real property described in Exhibit "A" attached hereto and
made a part hereof (the "Property"), commonly know as The Depot at Santa
Ana located at 1000 East Santa Ana Boulevard, Santa Ana, California.
Landlord hereby rents to Tenant sole use of the area designated as the 5th
Floor of The Depot (the "Premises") for Tenant's business purposes. Tenant
shall have the right to alter the Premises to accommodate Tenant's intended
use which includes, but is not limited to painting the interior and replacing
carpeting per Tenant's management requirements, at Tenant's sole cost,
subject to Landlord's prior approval, which shall not be unreasonably
withheld. Tenant's modifications shall to comply with all local permit
requirements.
(b) Tenant's use of the Premises shall be comprised of office hours of 10:00 a.m.
until 6 p.m., Monday through Sunday. For any use exceeding such hours shall
be subject to 7 days prior notice to Landlord, with Tenant required to pay
Landlord's costs for such extended usage.
(c) Tenant hereby accepts the Premises in their condition existing as of the
Commencement Date ofthis Agreement.
(d) Any signage Tenant intends to place upon the Premises is subject to prior
approval ofthe Landlord, and must be compliant with The Depot guidelines
as well as City of Santa Ana local regulations.
(e) Upon the expiration or termination of this Agreement, Tenant shall surrender
the Premises to Landlord in good and clean condition, less ordinary wear and
tear.
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Section 1.02 Term
(a) The term ofthe Agreement for renting the Premises ("Term") shall be an
initial six (6) month period commencing on FeJOn.<bYLj :2.2. ,2005
("Commencement Date"). After expiration of the initial six-month period,
this Agreement shall continue on a month-to-month basis for a period of
up to six months.
(b) Notice of intent to vacate or termination ofthe landlord-tenant relationship
is only valid with thirty (30) days prior written notice to the other party.
Section 1.03 Rent/Security Deposit
(a) Upon the Commencement Date, Tenant shall pay to Landlord monthly
compensation in the amount of $21 00.00 per month for use ofthe Premises.
Rent payments will be due upon execution of this Agreement and thereafter
on or before the 5th of each month, payable to "The City of Santa Ana" and
remitted to: The Depot at Santa Ana, 1000 East Santa Ana Blvd., Suite 108,
Santa Ana, CA 92701. A late charge often percent (10%) shall be applied
after any payment hereunder is due but unpaid. In addition, one and a half
percent (1 Y2%) interest per month shall be added for each month that payment
hereunder is due but unpaid.
(b) Contemporaneously with the execution of this Agreement, Tenant shall
deposit with Landlord the sum of $2100.00 as a security deposit. The deposit
will be held without liability for interest as security for faithful performance
by Tenant.
(c) Rent for any period during the rental term which is less than one (1) month
shall be a prorated portion ofthe monthly installment herein, based upon a
thirty (30) day month.
(d) Any holding over after the expiration ofthe Term, with the consent of
Landlord, shall be construed to be an extension from month to month at two
(2) times the compensation herein specified and shall otherwise be consistent
with the conditions herein specified, so far as applicable.
Section 1.04 Non-Recording
Neither party shall record this Agreement.
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ARTICLE 2 - TAXES AND UTILITIES
Section 2.01 Taxes
Tenant shall pay before they become delinquent all taxes, assessments or other charges
levied or imposed by any governmental entity on Tenant's Premises. If such taxes are
not assessed separately to Tenant, Landlord shall provide Tenant with evidence,
reasonably acceptable to Tenant, of such tax assessment and the amount due, which is
attributable to Tenant.
Section 2.02 Utilities
(a) Landlord shall pay for all electricity, gas, water sewer and janitorial services
furnished to the Premises for the use, operation and maintenance of Tenant's premises
during the Term of this Agreement, or any extension thereof, and for the removal of trash
from the Premises during the Term of this Agreement, or any extension thereof.
(b) Tenant shall have the right to improve the present electrical and
telecommunication cabling and outlets and any other such infrastructure that would
reasonably be associated with Tenant's intended use of the Premises, all at Tenant's sole
cost and expense. Any communication and/or computer lines brought in by Tenant must
be reviewed and approved by City staff; Tenant cannot splice into Landlord's existing
City telephone or computer lines.
ARTICLE 3 - IMPROVEMENTS AND ACCESS
Section 3.01 The Premises/Miscellaneous
(a) Tenant shall repair any damage to the Premises and will leave the
Premises in satisfactory condition as approved in writing by Landlord.
Tenant shall be required to remove all its fixtures upon
expiration/termination of the Agreement, and if Tenant fails to do so
within thirty (30) days, Landlord may elect to do so at Tenant's sole cost
and expense, or elect to not remove such fixtures, in which case, such
fixtures shall become the property of Landlord, at Landlord's option. Any
personal property, equipment or other improvements that are not removed
within said thirty-day period shall become the property of Landlord, at
Landlord's option. Tenant's obligation to pay compensation to Landlord
shall not cease, unless and until the fixtures that Tenant must remove, are
removed to Landlord's approval.
(b) Tenant shall provide access to the Premises to the Landlord, and its
employees, agents, contractors and subcontractors, twenty-four (24)
hours a day, seven (7) days a week. Except in the case of
emergencies, Landlord shall give Tenant twenty-four (24) hours notice
prior to entry into the Premises.
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(c) Tenant shall, at its sole cost and expense, maintain and repair the
Premises including, but not limited to, the removal of all trash, debris,
graffiti, as well as any special intensive cleaning. If Tenant causes any
damage to the Property, to the Premises or to access roadways or other
nearby facilities, it shall properly repair same as specified by Landlord.
(d) Upon the expiration or termination of this Agreement, Landlord shall
approve in writing the surrender of the Premises by Tenant only after
being satisfied that the Premises has been left in good and clean condition,
less ordinary wear and tear.
(e) Quiet Enjoyment. Tenant shall have quiet possession of the
Premises for the entire term hereof, subject to all the provisions of this
Agreement.
Section 3.02 Liens
Tenant will not permit any mechanics' or materialmens' or other liens to stand against the
Premises by reason of any use or occupancy by Tenant, or any person claiming under
Tenant.
ARTICLE 4 - INDEMNITY AND INSURANCE
Section 4.01 Indemnification, Defense, Hold Harmless
Tenant shall protect, defend, indemnify and save and hold harmless Landlord, its officers,
officials, employees, and agents from and against any and all liability, loss, damage,
expenses, costs (including without limitation costs and fees oflitigation of any nature)
arising out of or in connection with Tenant's performance ofthis Agreement or Tenant's
failure to comply with any of Tenant's obligations contained in the Agreement by Tenant,
its officers, agents or employees except such loss or damage which was caused by the
sole negligence or willful misconduct of Landlord. In the event Landlord is named as
codefendant, Tenant shall notify Landlord of such fact and shall represent Landlord in
such legal action unless Landlord undertakes to represent itself as codefendant in such
legal action, in which event Landlord shall bear its own litigation costs, expenses and
attorney's fees. Tenant further agrees to indemnify, hold harmless, and pay all costs for
the defense of the Landlord, including fees and costs for special counsel to be selected by
Landlord, regarding any action by a third party challenging the validity of this
Agreement, or asserting that personal injury, damages, just compensation, restitution,
judicial or equitable relief due to personal or property rights arises by reason of the terms
of, or effects arising from this Agreement. Landlord may make all reasonable decisions
with respect to its representation in any legal proceeding.
Section 4.02 Insurance
In addition to the Tenant's covenant to indemnify and hold harmless Landlord, Tenant
shall obtain and furnish to Landlord, a policy of general public liability insurance,
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commercial general liability, covering the Premises. The policy shall indemnify Tenant
and Landlord, their officers, agents and employees, while acting within the scope oftheir
duties, against any and all claims arising out of or in connection with the Premises and
shall provide coverage in not less than the following amount: combined single limit
bodily injury, personal injury and property damage, liability, of $1 ,000,000 per
occurrence. The City also requires an Additional Insured Endorsement, as attached and
incorporated herein as Exhibit B. The policy shall name the City of Santa Ana, its
agents, officers, employees and volunteers as Additional Insureds, and shall specifically
provide that any insurance coverage which may be applicable to the Premises shall be
deemed excess coverage and that Tenant's insurance shall be primary. Under no
circumstances shall the above-mentioned insurance contain a "deductible" or any other
similar form of limitation on the required coverage. Tenant is required to give the
Landlord no less than thirty (30) days notice of cancellation or reduction in coverage. No
cancellation provision in any insurance policy shall be construed in derogation ofthe
continuous duty of Tenant to furnish insurance during the term of this Agreement.
Section 4.03 Property Insurance
Tenant shall provide to Landlord, before entering the Premises, and shall maintain in
force during the entire term of this Agreement, property insurance with extended
coverage endorsements thereon, on the Premises in an amount equal to the full
replacement cost and/or value thereof; this policy shall contain a replacement cost
endorsement naming Tenant as the insured and shall not contain a co-insurance penalty
provision. The policy shall contain a special endorsement that such proceeds shall be
used to repair or rebuild any such improvements so damaged or destroyed; and if not so
used, such proceeds shall be paid to Landlord. The proceeds of any such insurance
payable to Landlord shall be used for rebuilding or repair as necessary to restore the
Premises at the discretion of Landlord. The policy shall name Landlord as an Additional
Insured.
The policy or policies shall also contain the following endorsements:
1. The insurer will not cancel or reduce the insured's coverage without
thirty (30) days prior written notice to Landlord; and
2. Landlord will not be responsible for premiums or assessments on the
policy.
A complete and signed certificate of insurance with all endorsements required by this
Section shall be filed with Landlord prior to the execution of this Agreement. At least
thirty (30) days prior to the expiration of any such policy, a signed and complete
certification of insurance showing that coverage has been renewed, shall be filed with
Landlord.
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Section 4.04 Certificates of Insurance; Additional Insured Endorsements
Prior to execution ofthis Agreement, Tenant shall furnish to Landlord certificates of
insurance and additional insured endorsements to each of Tenant' s insurance policies,
subject to approval of the City Attorney, evidencing the foregoing insurance coverages as
required by this Agreement; these certificates shall:
1. provide the name and policy number of each carrier and policy;
2. shall state that the policy is currently in force; and
3. shall promise to provide that such policies will not be canceled, suspended,
voided, reduced in coverage or in limits, or modified without thirty (30) days
prior written notice of Landlord.
Tenant shall maintain the foregoing insurance coverages in force throughout the term of
this Agreement. The requirement for carrying the foregoing insurance coverages shall
not derogate from the provisions for indemnification of Landlord by Tenant under the
Agreement. Landlord or its representatives shall at all times have the right to demand the
original or a copy of all these policies of insurance, which Tenant shall provide within
fifteen (15) days of Landlord's request.
ARTICLE 5 - TERMINATION AND DEFAULT
Section 5.01 Termination in the Event of Casualty or Condemnation
(a) In the event of any damage, destruction or condemnation of the Premises,
which renders the Premises unusable or inoperable in Landlord's judgment,
Tenant shall have the right, but not the obligation, to terminate the
Agreement with respect to the subject Premises by giving written notice to
Landlord within thirty (30) days after such damage, destruction or
condemnation. If by virtue of such casualty or condemnation, Landlord
determines that the Premises is no longer adequate for Tenant to continue its
operations, or any repairs to the Premises have not been completed or cannot
reasonably be completed within sixty (60) days from the date of the damage,
destruction or condemnation. This Agreement will become null and void.
(b) In the event of condemnation, unless Tenant is allowed by the condemning
authority to continue its operations in the Premises, this Agreement shall
terminate as of the date title to the Property vests in the condemning
authority or Tenant is required to cease its operations, whichever is earlier. If
any property described herein or hereinafter added hereto is taken in eminent
domain, the entire award shall be paid to Landlord.
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Section 5.02 Termination
This Agreement may be terminated by either party on thirty (30) days prior written
notice, after the initial six-month term has expired.
ARTICLE 6 - ASSIGNMENT, ABANDONMENT, DEFAULT, INSOLVENCY
Section 6.01 Assignment
Tenant shall not, either voluntarily or by operation oflaw, assign, transfer, mortgage,
pledge, or encumber this lease or any interest therein, and shall not sublet said Premises
or any part thereof, or any right or privilege appurtenant thereto, or allow any other
person (the employees, agents, servants, and invitees of Tenant excepted) to occupy or
use said Premises, or any portion thereof, without the prior written consent of the
Landlord.
Section 6.02 Abandonment by Tenant
Should Tenant breach this Agreement and abandon the Premises prior to the expiration of
the Term, Landlord may recover at least one month's rental compensation for Tenant's
failure to give notice of such termination/vacation of the Premises.
Section 6.03 Default by Tenant
Should Tenant default in the performance of any of the terms, conditions, or obligations
contained in this Agreement, Landlord may, in addition to the remedies specified in
Section 6.02 of this Agreement, re-enter and regain possession ofthe Premises in the
manner provided by the laws of unlawful detainer of the State of California then in effect.
Section 6.04 Insolvency of Tenant
The insolvency of Tenant as evidenced by a receiver being appointed to take possession
of all or substantially all ofthe property of Tenant, or the making of a general assignment
for the benefit of creditors by Tenant, or the filing of a petition in bankruptcy shall
terminate this Agreement and entitle Landlord to re-enter and regain possession of the
Premises.
Section 6.05 Cumulative Remedies
The remedies given to Landlord in this Agreement shall not be exclusive, but shall be
cumulative and in addition to all remedies now and hereafter allowed by law or elsewhere
provided in this Agreement.
Section 6.06 Waiver of Breach
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The waiver by Landlord of any breach by Tenant of any of the provisions of this
Agreement shall not constitute a continuing waiver or a waiver of any subsequent breach
by Tenant either of the same or another provision of this Agreement.
ARTICLE 7 -HAZARDOUS MATERIALS
Section 7.01
At the time of execution ofthis Agreement, Landlord warrants that the Premises is clean
and contains no known hazardous materials. Tenant represents and warrants that it will
comply with all environmental laws during the term of this Agreement; its use of the
Premises herein will not generate any hazardous substance, and it will not store or
dispose on the Premises nor transport to or over the Premises any hazardous substance.
Tenant further agrees to clean-up and remediate any hazardous substance on the Premises
and Property, and hold Landlord harmless from and indemnify Landlord against any
release of any such hazardous substance and any damage, loss, or expense or liability
resulting from such release including all attorneys' fees, costs and penalties incurred as a
result thereof except any release caused by the negligence of Landlord, its employees or
agents. "Hazardous substance" shall be interpreted broadly to mean any substance or
material defined or designated as hazardous or toxic waste, hazardous or toxic material,
hazardous or toxic or radioactive substance, or other similar term by any federal, state or
local environmental law, regulation or rule presently in effect or promulgated in the
future, as such laws, regulations or rules may be amended from time to time; and it shall
be interpreted to include, but not be limited to, any substance which after release into the
environment will or may reasonably be anticipated to cause sickness, death or disease.
ARTICLE 8 - MISCELLANEOUS
Section 8.01 Force Majeure - Unavoidable Delays
Should the performance of any act required by this Agreement to be performed by either
Landlord or Tenant be prevented or delayed by reason of an act of God, strike, lockout,
labor troubles, inability to secure materials, restrictive governmental laws or regulations,
or any other cause except financial inability not the fault ofthe party required to perform
the act, the time for performance of the act will be extended for a period equivalent to the
period of delay, and performance ofthe act during the period of delay will be excused,
provided, however, that nothing contained in this section shall excuse the prompt
payment of compensation by Tenant as required by this Agreement or the performance of
any act rendered difficult solely because of the financial condition of the party, Landlord
or Tenant, required to perform the act.
Section 8.02 Notice
Any written notice or required submittals, given under the terms of this Agreement, shall
be delivered personally, or mailed, certified mail, postage prepaid, addressed to the party
concerned as follows:
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To Landlord:
Clerk of the City Council
City of Santa Ana
20 Civic Center Plaza (M-30)
P.O. Box 1988
Santa Ana, CA 92702-1988
Telefacsimile (714) 647-6956
With courtesy copies to:
Executive Director of the Community Development Agency
City of Santa Ana
20 Civic Center Plaza (M-25)
P.O. Box 1988
Santa Ana, CA 92702
Telefacsimile (714) 647-6549
and,
City Attorney
City of Santa Ana
20 Civic Center Plaza (M-29)
P.O. Box 1988
Santa Ana, CA 92702
Telefacsimile (714) 647-6515
To Tenant:
Lennar Homes, Inc.
25 Enterpirse, Suite 250
Aliso Viejo, CA 92656
Telefacsimi1e (949) 349-0956
A party may change its address by giving notice in writing to the other party. Thereafter,
any notice, tender, demand, delivery, or other communication shall be addressed and
transmitted to the new address. If sent by mail, any notice, tender, demand, delivery, or
other communication shall be effective or deemed to have been given three (3) days after
it has been deposited in the United States mail, duly registered or certified, with postage
prepaid, and addressed as set forth above. If sent by telefacsimile, any notice, tender,
demand, delivery, or other communication shall be effective or deemed to have been
given twenty-four (24) hours after the time set forth on the transmission report issued by
the transmitting facsimile machine, addressed as set forth above. For purposes of
calculating these time frames, weekends, federal, state, County or City holidays shan be
excluded.
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Section 8.03 Contract Administrator
The Executive Director of the Community Development Agency, or hislher designee,
shall be City's Administrator for this Agreement and all approval and notices required to
be given herein shall be so directed and addressed.
Section 8.04 Compliance with Laws
Tenant shall at Tenant's own cost and expense comply with all statutes, ordinances,
regulations, and requirements of all governmental entities, including federal and state,
county and municipal, relating to Tenant's use and occupancy of the Premises whether
such statute, ordinances, regulations, and requirements be now in force or hereinafter
enacted. The judgment of any court of competent jurisdiction, or the admission by
Tenant in a proceeding brought against Tenant by any government entity, that Tenant has
violated any such statute, ordinance, regulation, or requirement shall be conclusive as
between Landlord and Tenant and shall be considered grounds for termination of this
Agreement by Landlord. Tenant will obtain all permits and other governmental
approvals, required in connection with Tenant's activities hereunder, and update such
permits/approvals as necessary.
Section 8.05 Binding on Heirs and Successors
This Agreement shall be binding on and shall inure to the benefit ofthe heirs, executors,
administrators, successors, and assigns ofthe parties hereto. The provisions of this
Section shall not be deemed to be a waiver of any of the conditions against assignment
set forth herein.
Section 8.06 Partial Invalidity
Should any provision ofthis Agreement be held by a court of competent jurisdiction to be
either invalid, void, or unenforceable, the remaining provisions of this Agreement shall
remain in full force and effect unimpaired by the holding, so long as the reasonable
expectations of the parties hereto are not materially impaired.
Section 8.07 Waste or Nuisance
Tenant shall not commit or permit the commission by others of any waste on the
Premises. Tenant shall not maintain, commit, or permit the maintenance or commission
of any nuisance as defined in Section 3479 and/or Section 3480 of the California Civil
Code on the Premises; and Tenant shall not use or permit the use ofthe Premises for any
unlawful purpose.
Section 8.08 Repairs
Tenant shall be required to make any repairs to the Premises occurring from damages
caused by Tenant, its employees, agents, contractors, and subcontractors.
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Section 8.09 Time of Essence
Time is expressly declared to be of the essence in this Agreement.
Section 8.10 Governing Law
This Agreement has been executed and delivered in the State of California and the
validity, interpretation, performance, and enforcement of any of the clauses of this
Agreement shall be determined and governed by the laws of the State of California. Both
parties further agree that Orange County, California, shall be the venue for any action or
proceeding that may be brought or arise out of, in connection with or by reason ofthis
Agreement.
Section 8.11 Survival
Terms and conditions ofthis Agreement which by their sense and context survive the
termination or expiration of this Agreement, shall so survive.
Section 8.12 State of Emergency/Public Necessity
Due to the fact that The Depot has been designated a Homeland Security Evacuation
Center, upon the declaration of a state of emergency/public necessity, Landlord may, give
immediate notice in writing to Tenant to suspend or revoke normal operation under this
Agreement without liability to Tenant when the emergency/public necessity so requires,
or to suspend operation immediately hereunder temporarily in the event of such public
emergency, as may be determined by the City Manager. Such suspension will terminate
as soon as the public necessity or emergency no longer exists. Tenant shall be
compensated for any time of suspended use or operation by Landlord in the form of an
equal amount oftime added onto the term ofthe Agreement by Landlord (i.e. Tenant
suspends operation for 2 months due to state of emergency, Agreement Term is extended
an additional 2 months).
Section 8.13 Conflict of Interest
Tenant covenants that it presently has no interest and shall not have interests, direct or
indirect, which would conflict in any manner with performance of this Agreement.
Section 8.14 Attorney's Fees
In the event suit is brought by either party to enforce the terms and provisions of this
Agreement or to secure the performance hereof, each party shall bear its own attorney's
fees.
Section 8.15 Exclusivity and Amendment
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This Agreement constitutes the entire agreement and understanding between Landlord
and Tenant respecting the Premises and correctly sets forth the obligations of Landlord
and Tenant to each other as of such date. Any agreements or representations respecting
the Premises or their licensing between the parties not expressly set forth in this
instrument are null and void. This Agreement or any part of it may not be changed,
altered, modified, limited or extended orally or by any Agreement between the parties,
unless such Agreement is expressed in writing, signed and acknowledged by Landlord
and Tenant, or their successors in interest.
Section 8.16 Captions
Captions used in this Agreement are for ease of reference only and shall not affect the
construction or interpretation of this Agreement.
Section 8.17 Non-Discrimination
Tenant shall not discriminate because of race, color, creed, religion, sex, marital status,
sexual orientation, age, national origin, ancestry, or disability, as defined and prohibited
by applicable law, in the recruitment, selection, training, utilization, promotion,
termination or other employment related activities. Tenant affirms that it is an equal
opportunity employer and shall comply with all applicable federal, state and local laws
and regulations.
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by and through their authorized officers the day, month and year first written above.
ATTEST:
PATRICIA E. HEALY
Clerk of the Council
APPROVED AS TO FORM:
Joseph W. Fletcher, City Attorney
d, y- .2J;r~ ,
BY: Lisa E. Storck
Assistant City Attorney
NDED FOR APPROVAL:
t-~
Patricia C. Whitaker, Executive Director
Community Development Agency
CITY OF SANTA ANA
/
/ y/;/uZ,.
DAVID N. AM
City Manager
TENANT:
Qr1lJ--
Douglas Woodward, Division President
Lennar Homes of California, Inc.
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