HomeMy WebLinkAboutDAY, WILLIAM LARRY 2 - 2001
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LEASE AGREEMENT BETWEEN
THE CITY OF SANTA ANA AND
WILLIAM LARRY DAY
1. PARTIES
This Lease is made and entered into this tt!I: of J/ ~{ 2001 by and between William
Larry Day (hereinafter referred to as "Landlord") and the City of Santa Ana, a charter city and
municipal corporation duly organized and existing under the Constitution and laws of the state of
California (hereinafter referred to as "Tenant").
2. PREMISES
Landlord does hereby lease to Tenant and Tenant hereby leases from Landlord on the terms
and conditions hereinafter set forth that certain real property and the building and other
improvements located thereon situated in the City of Santa Ana, County of Orange, State of
California, commonly known as 1602 N. Grand Avenue, and described as all the premises shown
crosshatched on a plot plan attached hereto as Exhibit 1, and incorporated herein, being that certain
three (3) story building located at 1602 N. Grand Avenue, Santa Ana, California (said real property
is hereinafter called the "Premises") together with the non-exclusive use of Landlord's elevator, and
common use of stairways, washrooms, hallways, driveways for vehicles ingress and egress,
pedestrian walkways, other facilities and common areas appurtenant to the Premises created by this
Lease. Said Premises must be delivered to Tenant in full compliance with all federal, state and
loca11aws and regulations.
3. TERM
The term of this Lease shall be for two years commencing on Jan. 1, 2002. This lease may
be terminated, anytime after the first year of the lease, upon 90 days written notice to the other
party.
4. OPTION TO EXTEND TERM
The Tenant shall have the option to extend the term of this Lease for four one-yearperiod(s)
on the same terms and conditions. Notification of said exercise of such option shall be done in
writing at least sixty (60) days prior to said termination date.
5. RENT
a. Standard Rental Payments: Tenant shall pay to Landlord as rent for the Premises the sum of
seven thousand four hundred and fifty dollars ($7,450.00) per month, on or before the fifth day of
the first full calendar month of the term hereof and like sum on or before the first day of each and
every successive calendar month thereafter during the term hereof. The rental sum includes one
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thousand three hundred and eighty dollars ($1,380.00) calculated as a base monthly rate for utilities
including, electricity, gas, water, trash and disposal. Future adjustments in utilities shall be
calculated in accordance with section 11 of this agreement. Rent for any period during the term of
this Lease which is for less than one (1) month shall be a pro-rata portion of the monthly
installment, based upon a thirty (30) day month. Rent shall be payable without notice or demand
and without any deduction, offset or abatement in lawful money of the United States to the
Landlord at the address stated herein for notices or to such other persons or such other places as the
Landlord may designate to Tenant in writing.
b. cpr Adjustment: The rent, required pursuant to Sea) above, shall be subject to automatic
adjustment at the beginning of the second year of the least term. Said adjustment shall be based on
the Consumer Price Index for Los Angeles-Anaheim-Riverside (All Urban Consumers-All Items
1982-84=100) promulgated by the Bureau of Labor Statistics of the U.S. Department of Labor or
any replacement index hereto.
6. PARKING
Landlord shall provide common area parking spaces for the Tenant's use, and in addition,
provide parking for disabled persons in accordance with the American Disabilities Act, Section
7102 of the California Uniform Building Code and the applicable codes and/or ordinances relating
to parking for disabled persons as established by the local jurisdiction in which the Premises is
located where the provisions of such local codes and/or ordinances exceed or supersede the State
requirements. Landlord shall re-stripe the disabled parking stalls prior to Tenant's occupation of
said premises. Landlord shall, after the first year of tenancy, if not completed before, re-surface the
parking lot, including any re-striping necessary. Tenant will continue use of that portion of the
parking lot containing a freezer, while adding to the Premises a chain link fence area for placement
of a storage unit and a get acquainted area for animal adoption.
7. USE.
Tenant shall use the Premises only for an animal shelter and for no other purpose without
the Landlord's prior written consent.
8. ALTERATIONS
Tenant may make improvements and changes in the Premises, including but not limited
to the installation of fixtures, partitions, counters, shelving, and equipment as deemed necessary
or appropriate. Tenant agrees that the Premises shall be left in as good condition as when
received, reasonable wear and tear accepted. Landlord agrees to re-install grooming equipment
(tub and table) in the designated grooming area prior to Tenant's occupancy.
9. REPAIR AND MAINTENANCE
Tenant shall, at Tenant's sole cost and expense, keep the Premises and every part thereof
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in good condition and repair, damage thereto from causes beyond the reasonable control of
Tenant and ordinary wear and tear excepted. Tenant shall upon the expiration or sooner
termination of this Lease, surrender the Premises to the Landlord in good condition, ordinary
wear and tear and damage from causes beyond the reasonable control of Ten ant excepted.
Not withstanding the provisions contained herein, Landlord shall repair and maintain the
structural portions of the Property, including the basic plumbing, air conditioning, heating and
electrical systems, installed or furnished by Landlord, unless such maintenance and repairs are
caused in whole or in part by the act, neglect, fault or omission of any duty by the Tenant, its
agents, employees or invitees, in which case Tenant shall pay to Landlord the reasonable cost of
such maintenance and repairs.
Landlord shall not be in breach of its obligations under this article unless Landlord fails to
make repairs or perform maintenance which Landlord is obligated to perform hereunder, and
such failure persists for an unreasonable time after written notice of the need for such repairs or
maintenance is given to Landlord by Tenant.
10. ASSIGNMENT AND SUBLETTING
Tenant shall not, either voluntarily or by operation of law, 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.
11. UTILITIES
Landlord shall be responsible for and pay, prior to the delinquency date, all charges for
utilities (including, if applicable, electricity, gas, water, sewer, refuse collection and cable
services) supplied to the Premises, except telephone, which shall be the obligation of Tenant.
Should Landlord fail to provide utility service to the Premises, Tenant may provide such service
and deduct the cost thereof, including overhead, from any rent payable.
Landlord shall pay the cost of providing the above utilities, and shall determine the
amount expended in the first twelve months of the Lease. Commencing in the second (2nd) Lease
Year, the Tenant shall pay the Tenant's pro-rata cost (one-third) of all such utilities to the extent
such exceed the base included utilities amount of $1,380.00 per month. Landlord shall bill
Tenant for such additional utility cost as additional rent, on a quarterly or other convenient basis,
which shall be due and payable by Tenant within thirty (30) days after receipt. To the extent, if
any, the base utility amount decreases after the first twelve months, Tenant shall be entitled to an
adjustment of the base utility amount included in the rental sum. Tenant shall be entitled to
accounting records to confirm the cost of utilities over or under the Base Year cost.
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12. RULES AND REGULATIONS
Tenant shall faithfully observe and comply with the rules and regulations that Landlord
shall from time to time promulgate. Landlord reserves the right from time to time to make all
reasonable modifications to said rules. The additions and modifications to those rules shall be
binding upon Tenant upon delivery of a copy ofthem to Tenant.
13. ENTRY BY LANDLORD
Landlord reserves and shall at any and all times have the right to enter the Premises, with
reasonable notice to Tenant, for the purposes of inspection, supplying janitorial service and any
other service to be provided by Landlord to Tenant hereunder, and to alter, improve, or repair the
Premises, providing that the business of the Tenant shall not be interfered with unreasonably.
14. TAXES.
a) Real Property Taxes.
Landlord shall pay all real property taxes and general assessments levied and assessed
against the Premises during the term ofthis Lease.
15. lNSURANCE; INDEMNITY.
(a) Fire Insurance.
Landlord at its cost shall maintain during the term of this Lease on the Premises a policy or
policies of standard fire and extended coverage insurance to the extent of at least ninety (90%)
percent of full replacement value thereof. Said insurance policies shall be issued in the names of
Landlord and Tenant as their interests may appear.
Tenant at its cost shall maintain during the term of this Lease on all its personal property,
Tenant's improvements and alterations in or about the Premises, a current policy of standard fire
and extended coverage insurance or self-insurance, with vandalism and malicious mischief
endorsements to the extent of their full replacement value. The proceeds from any such policy shall
be used by Tenant for the replacement of personal property or the restoration of Tenant's
improvements or alterations.
(b) Liability Insurance.
Tenant at its sole cost and expense shall maintain during the term of this Lease current
public liability and property damage insurance or program of self-insurance.
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(c) Waiver of Subrogation.
As long as their respective insurers so permit, Landlord and Tenant hereby mutually
waive their respective rights of recovery against each other for any loss insured by fire, extended
coverage and other property insurance policies existing for the benefit of the respective parties.
Each party shall obtain any special endorsements, if required by their insurer to evidence
compliance with the aforementioned waiver.
(d) Hold Harmless.
Tenant shall indemnify Landlord against all claims, damages, losses, costs, liabilities and
expenses, arising from Tenant's use of the Premises for the conduct of its business, or from any
activity, work, or other thing done, permitted, or suffered by the Tenant in or about the building,
and shall further indemnify and hold harmless Landlord against and from any and all claims
arising from any breach or default in the performance or any obligation on Tenant's part to be
performed under the terms of this Lease, or arising from any act or negligence of the Tenant, or
any officer, agent, employee, guest, or invitee of Tenant, and from and against all costs, attorney's
fees, expenses and liabilities incurred by any such claim or any action or proceeding brought
thereon and, in any case, action, or proceeding brought against Landlord by reason of any such
claim.
Landlord or its agents shall not be liable for any damage to property entrusted to
employees of the building, nor for loss or damage to any property by theft or otherwise, nor for
any injury to or damage to persons or property resulting from fire, explosion, falling plaster,
steam, gas, electricity, water, or rain which may leak from any part of the building or from the
pipes, appliances, or plumbing works therein or from the roof of any structure on the Property, or
from any other place resulting from dampness or any other cause whatsoever, unless caused by or
due to negligence of Landlord, its agents, servants or employees for failing to repair such
condition(s) within a reasonable time after written notice of the need for such repair is given to
Landlord by Tenant.
Tenant shall give prompt notice to Landlord with respect to any defects, fire or accidents
observed by Tenant on the Premises, or on the Property, or of defects therein, or in the fixtures or
equipment.
16. RECONSTRUCTION
In the event that the Premises or the building of which the Premises are a part are
damaged by fire or other perils covered by extended coverage insurance, Landlord agrees to
forthwith repair the same; and this Lease shall remain in full force and effect, except that Tenant
shall be entitled to a proportionate reduction, to be based upon the extent to which the making of
such repair shall materially interfere with the business carried on by the Tenant in the Premises.
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In the event that the Premises or the building of which the Premises are a part are
damaged as a result of any cause other than the perils covered by fire and extended coverage
insurance, then Landlord shall repair the same, provided the extent of the destruction be less than
ten percent (10%) of the then full replacement cost of the Premises or the building of which the
Premises are a part. In the event the destruction of the Premises or the building is greater than
ten percent (10%) of the full replacement cost, then Landlord shall have the option: (1) to repair
or restore such damage, this Lease continuing in full force and effect, but the rent to be
proportionately reduced as hereinabove in this article provided; or (2) give notice to Tenant
within sixty days (60) of the damage, at which time this Lease shall expire and all interests of the
Tenant in the Premises shall terminate on the date so specified in such notice and the rent,
reduced by a proportionate amount based upon the extent, if any, to which such damage
materially interfered with the business carried on by the Tenant in the Premises, shall be paid up
to the date of such termination.
The Tenant shall not be entitled to any compensation or damages from Landlord for loss
of the use of the whole or any part of the Premises, Tenant's personal property, or any
inconvenience or annoyance occasioned by such damage, repair, reconstruction, restoration, or by
such termination of the Lease.
17. DEFAULT.
A. Default. The occurrence of anyone or more ofthe following events shall constitute a
default under this Lease by Tenant: .
1. Non-curable defaults:
a) The vacating or abandonment ofthe Premises by Tenant.
b) Any attempted or involnntary transfer of Tenant's interest in this Lease without Landlord's
prior consent.
c) If Tenant makes, or has made, or furnishes any warranty, representation or statement to
Landlord in connection with the Lease which is or was false or misleading in any material
respect when made or furnished.
2. Curable defaults:
a) The failure by Tenant to make any payment of rent or any other payment required to be made
by Tenant hereunder, as and when due, where such failure shall continue for a period of three
(3) days after written notice thereof by Landlord to Tenant, this Lease shall be terminable at
Owner's option, in accordance with the procedures established in the Code of Civil
Procedure, section 1161.
b) The failure by Tenant to observe or perform any of the covenants, conditions, or provisions
of this Lease to be observed or performed by the Tenant, other than the payment of rent,
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where such failure shall continue for a period of thirty (30) days after written notice thereof
by Landlord to Tenant; provided; however, that if the nature of Tenant's default is such that
more than thirty (30) days was reasonably required for its cure, then Tenant shall not be
deemed to be in default if Tenant commences such cure within said thirty (30) day period,
and thereafter diligently prosecutes such cure to completion.
B. Remedies.
In the event of any non-curable default or breach by Tenant, or a curable default which is not
timely cured, Landlord shall have the right to terminate this Lease and Tenant's right to
possession of the Premises, and Tenant shall immediately surrender possession of the Premises to
Landlord. If Landlord terminates this Lease and Tenant's right to possession for the Premises,
Landlord may recover the following from Tenant:
a) The worth at the time of award of the unpaid rent which was due, owing and unpaid by
Tenant to Owner at the time of termination;
b) The worth at the time of the award of the amount by which the unpaid rent for the balance of
the Lease term after the time of award exceeds the amount of rental loss which Tenant proves
could be reasonably avoided;
c) Pursuing any other remedies now or hereafter available to Landlord under the laws or any
judicial decision of the state in which the Premises are located. Landlord shall also have the
remedies provided in Civil Code sections 1951.2 and 1951.4.
18. BUILDING AND SAFETY REQUIREMENTS
During the full term of this Lease, Landlord, at Landlord's sole cost, agrees to maintain
the Premises in compliance with all applicable laws, rules, regulations, building codes, statutes,
and orders as they are applicable on the date of this Lease, and as they may be subsequently
amended.
The Landlord shall comply with the Americans with Disabilities Act (ADA) and all other
federal state, and local codes, statutes, and orders relating to disabled access as they are
applicable on the dates of this Lease, and as they may be subsequently amended. Due to the costs
associated with retrofitting the elevator to comply with ADA, Tenant agrees to install a doorbell
to allow customers to summon assistance when needed to open the elevator door. Landlord
agrees to make restrooms compliant with ADA requirements. If Landlord fails to do so, Tenant
make the improvements and deduct from the lease payment.
Landlord further agrees to maintain the Premises as a "safe place of employment," as
defined in the California Occupational Safety and Health Act (California Labor Code, Division 5,
Part 1, Chapter 3, beginning with Section 6400) and the Federal Occupational Safety and Health
Act, where the provisions of such Act exceed, or supersede, the California Act. as the provisions
of such Act are applicable on the date of this Lease, and as they may be subsequently amended.
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In the event Landlord neglects, fails, or refuses to maintain said Premises as aforesaid,
Tenant may, notwithstanding any other termination provisions contained herein:
A. Terminate this Lease; or
B. At Tenant's sole option, cure any such default by performance of any act, including
payment of money, and subtract the cost thereof plus reasonable administrative costs
from the rent.
19. HOLDING OVER.
If the Tenant with the Landlord's consent, remains in possession of the Premises after the
expiration or termination of the term of this Lease, such possession by Tenant shall be deemed to be
a tenancy from month-to-month at a rental in the amount of the last monthly rental plus all other
charges payable hereunder, upon all the provisions of this Lease applicable to month-to-month
tenancy.
20. NOTICES.
Whenever under this Lease a provision is made for any demand, notice or declaration of any
kind, it shall be in writing and served either personally or sent by registered or certified United
States mail, postage prepaid, addressed at the addresses as set forth below:
TO LANDLORD AT: William Larry Day
Grand Pet Care Center, Inc.
1602 N. Grand Avenue
Santa Ana, CA
TO TENANT AT:
City of Santa Ana
20 Civic Center Plaza M-36
P.O. Box 1988
Santa Ana, CA 92702
Attn:
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
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above. For purposes of calculating these time frames, weekends, federal, state, County or City
holidays shall be excluded.
21. GENERAL PROVISIONS
Waiver. The waiver by Landlord of any term, covenant or condition herein contained shall not be
deemed to be a waiver of such term, covenant, or condition on any subsequent breach of the
same or any other term, covenant, or condition herein contained. The subsequent acceptance of
rent hereunder by Landlord shall not be deemed to be a waiver of any preceding breach by
Tenant of any term, covenant, or condition of this lease, other than the failure of the Tenant to
pay the particular rental so accepted, regardless of Landlord's knowledge of such preceding
breach at the time of the acceptance of such rent.
Time. Time is of the essence of this Lease, and each and all of its provisions in which
performance is a factor.
Successors and Assigns. The covenants and conditions herein contained, subject to the
provisions as to assignment, apply to and bind the heirs, successors, executors, administrators,
and assigns of the parties hereto.
Quiet Possession. Upon Tenant paying the rent reserved hereunder, and observing and
performing all of the covenants, conditions, and provisions on Tenant's part to be observed and
performed hereunder, Tenant shall have quiet possession of the Premises for the entire term
hereof, subject to all the provisions of this Lease.
Prior Agreements. This Lease contains all of the agreements of the parties hereto with respect to
any matter covered or mentioned in this Lease, and no prior agreements or understanding
pertaining to any such matters shall be effective for any purpose; no provision of this lease may
be amended or added to except by an agreement in writing signed by the parties hereto or their
respective successors-in-interest. This Lease shall not be effective or binding on any party until
fully executed by both parties hereto.
Inability to Peiform. This Lease and the obligations of the Tenant hereunder shall not be affected
or impaired because the Landlord is unable to fulfill any of its obligations hereunder, or is
delayed on doing so, if such inability or delay is caused by reason of strike, labor troubles, acts of
God, or any other cause beyond the reasonable control of the Landlord.
Severability. Any provision of this lease which shall prove to be invalid, void, or illegal shall in
no way affect, impair, or invalidate any other provision hereof, and such other provision shall
remain in full force and effect.
Cumulative Remedies. No remedy or election hereunder shall be deemed exclusive but shall,
wherever possible, be cumulative with all other remedies at law or in equity.
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Choice of Law. This Lease shall be governed by the laws of the state of California, with venue in
the courts of Orange County.
22. ADDENDUM.
Any addendum attached hereto and either signed or initialed by the parties shall be deemed
a part hereof and shall supersede any conflicting terms or provisions contained in this Lease.
IN WITNESS WHEREOF, the parties hereto have executed this Lease Agreement on this
theMdayof p/o~ ,2001.
ATTEST:
CITY OF SANTA ANA
Patricia E. Healy
Clerk of the Council
APPROVED AS TO FORM:
Joseph W. Fletcher
City Attorney
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Assistant City Attorney
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David N. Ream
City Manager
RECOMMENDED FOR APPROVAL:
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Paul M. Walters
Chief of Police
William Larry Day
BY: LarryDay
TITLE: Owner
TAX ill # 557-72-9850
"Tenant"
"Landlord"
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EXHIBIT 1
ANIMAL SHEL TEA AT
1602 N. GRAND AVE.
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