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Home My WebLink AboutEUSEBIO SANTIAGO ANTONIO AND JUDITH SANTIAGOG CORPS 2-2015N-2015-022 FEB 9 2915 0, PWXC-) 9g� RENTAL AGREEMENT 0 (Loss of Rents) This AGREEMENT, made and entered into this 4/4 day of &L4 2015, by and between the property owner, EUSEBIO SANTIAGO ANTONIO AN JUDITH SANTIAGO, Husband and Wife as joint tenants (the "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 of certain real property of Owner located in the City of Santa Ana, which is legally described in Exhibit A, attached hereto and incorporated herein ("Property") WHEREAS, the Property consists of real property commonly known as 1725 & 1727 N. Bristol Street, Santa Ana, CA 92706 (APN No. 399-085-11). WHEREAS, the Property is currently used for residential purposes. WHEREAS, it is City's desire 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 U.S.C. 4201-4655, the implementing regulations 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 seq. of the Code of Regulations (collectively "Relocation Costs") due to City's possible acquisition of the Property, or any portion thereof, and Owner desires not to lose rental income due to the City's potential acquisition of the Property. WHEREAS, Owner and City agree to the accomplishment of this objective by allowing City to undertake lease obligations of those tenants that have or may vacate the Property before the City takes title to the Property or before the City takes possession of the Property; whichever is earlier. NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, City and Owner agree as follows: 1. The term of this Agreement ("Term") shall be for a period cornmencing on January 7, 2015 ("Commencement Date") and shall terminate automatically on the earlier of (a) the date City acquires legal title to the Property or ('h) the date City acquires legal possession to the Property by means of a court order of pre judgment possession in an eminent domain proceeding or (C) the date ninety days atter City notifies Owner in writing that it will not seek acquisition of the Property for purposes of the Bristol Street Widening Phase III -B project. 2. During the Term, City will pay to Owner on the first of each month following the Commencement Date, the monthly rental rate shown below as each unit is vacated, plus any utilities, services, operating expenses, taxes and rental adjustments as provided in the existing leases (the "Substitute Rent"), in consideration for Owner's agreement not to rent the vacant unit to any other person or entity and for performance of Owner's other obligations under this Agreement. City will pay a 10% late fee on the Substitute Rent if it is received after the tenth of each month. Unit Identification Rental hate Vacation Date 1725 N. Bristol Street (Studio) $550.00 per month 01/07/2015 1727 N. Bristol Street $1,600.00 per month Currently Occupied 3. In addition to the amounts set forth in section 2, within thirty business days following the full execution of this Agreement, City will pay the following amounts to Owner: a. An amount determined by dividing $550.00 by thirty (3 0) days to calculate a daily rental rate and multiplying the daily rate by the actual number of days in each partial month that 1725 N. Bristol Street (Studio) was vacant prior to the execution of this Agreement. b. The payment provided to Owner pursuant to this Section 3 is intended to compensate Owner for the Owner's lost rents beginning on the Vacation Dates stated in Section 2 above and ending on the Commencement Date. 4. Owner will promptly notify the City, in writing if any tenants occupying the Property provide notice to Owner of such tenant's intent to tenninate its rental agreement and/or vacate the Property and/or if such tenant actually vacates the Property. The City agrees to pay Owner the Substitute Rent defined in Section 2 above for vacant units. The written notification to City of any additional vacancy shall constitute a mutually acceptable addendum to this Agreement. 5. In consideration for the payments to be made under this Agreement, Owner shall not rent or allow any re -occupancy of a vacated unit by any persons or business entities, unless Owner receives notice from City under paragraph 1 (c) above that it will not seek acquisition of the Property for purposes of the Bristol Street Widening Phase III -B project. 6. Should Owner, in violation of Section 5 herein, re -rent or allow any occupancy of Property, Owner shall be liable to the City and shall indemnify the City and hold the City harmless for and against any and all costs, damages, liabilities and/or expenses, including attorneys' fees and expert witness fees, incurred by the City in enforcing the terms of this Agreement, including any and all Relocation Costs incurred by the City as a result of Owner's breach of this Agreement and/or City's obligation to relocate any tenants of the Property. 7. The City shall not call on Owner to make any improvements to the Property, but Owner hereby specifically covenants and agrees to keep the property in good order and condition. The City will maintain any vacant emits consistent with what the tenants have agreed to in their respective leases, including maintenance of tenant's insurance obligations. The City shall also maintain at its expense electricity to any vacated units to facilitate any necessary repairs, and for safety and security purposes. If City obtains possession of the Property before title passes to the City, the City covenants and agrees to keep the Property in good order and condition at its expense until title of the Property is conveyed to the City. 8. Owner reserves the right to enter onto and inspect the Property and to make any necessary repairs to the Property, in accordance with tenant leases, as applicable. 9. Any payment payable hereunder for any period of time less than one (1) month shall be determined by prorating the monthly rental rates set forth in Section 1, based on thirty (30) days in the month. 10. All notices required herein, or which may otherwise be given by either party to the other, shall be deemed to have been fully given when made in writing and deposited in the United States mail, certified and postage prepaid, and addressed as follows: To the Owner at: Eusebio Santiago Antonio & Judith Santiago 1725 N. Bristol Street Santa Ana, CA 92706 cc: Menan Semercian Tarbell Realtors 1403 N. Tustin Avenue, Suite 340 Santa Ana, CA 92705 To the City at: City of Santa Ana Public Works Department 20 Civic Center Plaza, 3rd Floor Santa Ana, CA 92701 Attn: Jason Gabriel, Principal Civil Engineer Nothing shall preclude the giving of such written notice by personal service. 11. Except as provided in Section 4, above, no amendments or modifications to the terms of this Agreement shall be valid unless made in writing and signed by the parties hereto, and no oral understanding or agreement not incorporated herein shall be binding on either of the parties hereto. 12. The terms and conditions of this agreement shall be binding upon the heirs, assigns, successors and personal representatives of the parties hereto. IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto as of the date first above written. OWNER CITY EUSEBIO SANTIAGO ANTONIO AND CITY OF SANTA ANA, a charter city and JUDITH SANTIAGO, Husband and Wife municipal corporation duly organized as joint tenants under the Constitution and laws of the State of California ✓�V �Y-�✓EUSEBIO I SANTIAGO ANTONIO _ David Cavazos City Maager JXUDITH SANTIAC&Y ATTEST: Maria D. Huizar, City Cleri Approved as to Form: qosa%'dov4a1qf Assistant City Attorney EXHIBIT "A" LEGAL DESCRIPTION Real property in the City of Santa Ana, County of Orange, State of California, described as follows: LOT 25 OF TRACT NO. 1572, AS SHOWN ON A MAP RECORDED IN BOOK 48, PAGE 16 OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF ORANGE COUNTY, CALIFORNIA. APN: 399-085-11