HomeMy WebLinkAboutContracts & Agreements_42-2015_CCv0001.pdf REAL ESTATE LEASE
ARTICLE ONE: BASIC TERMS
This Article One contains the Basic Terms of this Lease between the Landlord and Tenant
named below. Other Articles, Sections and Paragraphs of the Lease referred to in this Article One
explain and define the Basic Terms and are to be read in conjunction with the Basic Terms.
Section 1.01. Date of Lease: March 17, 2015
Section 1.02. Landlord: Brookside San Mateo Partners,LP
Address of Landlord: 1399 W.Colton Avenue Suite 5
Redlands, CA 92374-4536 (909) 793-3806
Section 1.03. Tenant(s) CITY OF REDLANDS,
Address of Tenant: 1270 W.Park Ave,Building C.Redlands ,CA 92373
Phone: (909) 798-7681
Section 1.04. Property: (Include street address,approximate square footage and description)
Plaza Las Palmas 1150 Brookside Ave., Suite L-1A,Redlands, CA 92373 Approx. 800 sq.ft.
Section 1.05. Lease Term: Month to Month beginning on 07/01/15 or such other
date as is specified in this Lease,and ending on TBD
Section 1.06. Permitted Uses: (See Section 5.01) Police Sub Station
Section 1.07. Tenant's Guarantor: (If none,so state) None
Section 1.08. Landlord's Broker: (See Article Fourteen) (If none,so state) None
Section 1.09. Tenant's Broker: (If none,so state) None
Section 1.10. Commission Payable to Landlord's Broker: (See Article Fourteen)
$ -0-
Section 1.11. Initial Security Deposit: (See Paragraphs 3.02 and 13.03 [c])
$ See Rider 1
Section 1.12. Vehicle Parking Space Allocated to Tenant: None
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Section 1.13. Rent and Other Charges Payable by Tenant:
(a) RENT: $ 450.00 per month for Month to Month
(Rent shall be made payable to Plaza Las Palmas and may be mailed or delivered in person to
1399 West Colton Ave., Suite 5,Redlands, California 92374-4536.)
Section 1.14. Riders: The following Riders are attached to and made a part of this Lease:
(if none, so state) Rider 1
ARTICLE TWO: LEASE TERM
Section 2.01. Lease of Property for Lease Term. Landlord leases the Property
to Tenant and Tenant leases the Property from Landlord for the Lease Term. The Lease Term
is for the period stated in Section 1.05 above and shall begin and end on the dates specified in
Section 1.05 above, unless the beginning or end of the Lease Term is changed under any provision
of this Lease. The "Commencement Date" shall be specified in Section 1.05 above for the
beginning of the Lease Term,unless advanced or delayed under any provision of this Lease.
Refer to Rider 1,Item G.
Section 2.02. Delay in Commencement. Landlord shall not be liable to Tenant if
Landlord does not deliver possession of the Property to Tenant on the first date specified in
Section 1:05 above. Landlord's non-delivery of the Property to Tenant on that date shall not
effect this Lease or the obligations of Tenant under this Lease. However,the Commencement
Date shall be delayed until possession of the Property is delivered to Tenant. The Lease Term
shall be extended for a period equal to the delay in delivery of possession of the Property to
Tenant,plus the number of days necessary to end the Lease Term on the last day of a month.
If Landlord does not deliver possession of the Property to Tenant within sixty(60) days after the
first date specified in Section 1.05 above. Tenant may elect to cancel this Lease by giving written
notice to Landlord within ten (10) days after the 60-day period ends. If Tenant gives such notice,the
Lease shall be canceled and neither Landlord nor Tenant shall have any further obligations to
the other. If Tenant does not give such notice, Tenant's right to cancel the Lease shall expire and
the Lease Term shall commence upon the delivery of possession of the Property to Tenant. If
delivery of possession of the Property to Tenant is delayed,Landlord and Tenant shall upon such
delivery,execute an amendment to this Lease setting forth the Commencement Date and expiration
date of the Lease.
Section 2.03. Early Occupancy. If Tenant occupies the Property prior to the
Commencement Date,Tenant's occupancy of the Property shall be subject to all of the provisions
of this Lease. Early occupancy of the Property shall not advance the expiration date of this Lease.
Tenant shall pay Rent and all other charges specified in this Lease for the early occupancy period.
Tenant shall be entitled to have,at not cost to Tenant,access to the premises and the right to
commence Tenant improvements for a period of not less that 30 days prior to the commencement
date of this lease.
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Section 2.04. Holding Over. Tenant shall vacate the Property upon the expiration or
earlier termination of this Lease. Tenant shall reimburse Landlord for and indemnify Landlord
against all damages incurred by Landlord from any delay by Tenant in vacating the Property. If
Tenant does not vacate the Property upon the expiration or earlier termination of the Lease and
Landlord thereafter accepts rent from Tenant, Tenant's occupancy of the Property shall be a
"month to month" tenancy, subject to all of the terms of this Lease applicable to month-to-month
tenancy.
ARTICLE THREE: RENT
Section 3.01. Time and Manner of Payment. Upon execution of this Lease,Tenant
shall pay Landlord the Rent in the amount stated in Paragraph 1.13 (a) above for the fust month
of the Lease Term. On the first day of the second month of the Lease Term and each month
thereafter,Tenant shall pay Landlord the Rent, in advance,without offset,deduction or prior
demand. The Rent shall be payable at Landlord's address or at such other place as Landlord may
designate in writing.
Section 3.02. Termination;Advance Payments. Upon termination of this Lease under
Article Seven{Damage or Destruction),Article Eight(Condemnation) or any other termination not
resulting from Tenant's default,and after Tenant has vacated the Property in the
manner required by this Lease, and equitable adjustment shall be made concerning advance rent,
and other advance payments made by Tenant to Landlord, and accrued real property taxes,and
Landlord shall refund the unused portion of the Security Deposit to Tenant or Tenant's successor
within 15 working days.
ARTICLE FOUR: OTHER CHARGES PAYABLE BY TENANT
Section 4.01. Real Property Taxes.
(a) Personal Property Taxes.
(I) Tenant shall pay all taxes charged against trade fixtures,furnishings,equipment
or any other personal property belonging to Tenant. Tenants shall try to have personal
property taxed separately from Property.
(u) If any Tenant's personal property is taxed with the Property,Tenant shall pay
Landlord the taxes for the personal propertywithin fifteen(15) days after Tenant receives
a written statement from Landlord for such personal property taxes.
Section 4.02. Utilities. Tenant shall pay,directly to the appropriate supplier,the cost
of all natural gas, heat, light, power,se— ^_-.__c,telephone,w ae;-ef..se dispesal and other
utilities and services supplied to the Property. However, if any services or utilities are jointly
metered with other property, Landlord shall make a reasonable determination of Tenant's
proportionate share of the cost of such utilities and services and Tenant shall pay such share to
Landlord within fifteen(15) days after receipt of Landlord's written statement.
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Section 4.03. Insurance Premiums.
(a) Liability Insurance. During the Lease Term, Landlord shall insure entire property
under his general liability insurance policy. Tenant shall be obligated to cant'his own liability policy
in the amount of$1,000,000.00,and name owner as additional insured. Tenant shall maintain such
other insurance as he deems necessary including content insurance,etc. The policy shall contain
cross-liability endorsements,if applicable,and shall insure Tenant's performance of the indemnity
provisions of Paragraphs 5.04. Tenant shall,at Tenant's expenses, maintain such other liability
insurance as Tenant deems necessary to protect Tenant.
(b) Hazard and Rental Insurance. During the Lease Term,Landlord shall maintain
policies of insurance covering loss of damage to the Property in the full amount of its replacement
value. Such policies shall provide protection against all perils included within the classification of
fire,extended coverage,vandalism, malicious mischief, special extended perils (all risk), sprinkler
leakage,earthquake sprinkler leakage,and Inflation Guard endorsement,and any other perils (except
flood and earthquake,unless required by any lender holding a security interest in the
Property) which Landlord deems necessary. During the Lease Term,Landlord shall also maintain a
rental income insurance policy with loss payable to Landlord in an amount equal to one year's Rent,
estimated real property taxes and insurance premiums. Tenant shall not do or permit to be done
anything which invalidates any such insurance policies.
Section 4.04. Late Charges. Tenant's failure to pay rent promptly may cause Landlord
to incur unanticipated costs. Such costs may include,but are not limited to processing and
accounting charges and late charges which may be imposed on Landlord by any ground lease,
mortgage or trust deed encumbering the Property. Therefore,if Landlord does not receive any
rent payment within ten (10) days after it becomes due,Tenant shall pay Landlord a late charge
equal to ten percent(10%) of the overdue amount.
Section 4.05. Interest on Past Due Obligations. Anyamount owed by Tenant to
Landlord which is not paid when due shall bear interest at the rate of fifteen percent (150/0) per
annum from the due date of such amount. However,interest shall not be payable on late charges to
be paid by Tenant under this Lease. The payment of interest on such amounts shall not excuse or
cure any default by Tenant under this Lease. If the interest rate specified in this Lease is higher than
the rate pemnitted by law,the interest rate is hereby decreased to the maximum legal interest rate
permitted bylaw.
ARTICLE FIVE: USE OF PROPERTY
Section 5.01. Permitted Uses. Tenant may use the Property only for the Permitted Uses
set forth in Section 1.06 above
Section 5.02. Manner of Use. Tenant shall not cause or permit the Property to be used in anyway
which constitutes a violation of any law, ordinance,or governmental regulation or order,which
annoys or interferes with the rights of tenants of the development of which the Property is part,o
which constitutes a nuisance or waste.
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Tenant shall obtain and pay for all permits,including a Certificate of Occupancy,required for
Tenant's occupancy of the Property and shall promptly take all substantial and non-substantial
actions necessary to complywith all applicable statues,ordinances, rules,regulations, orders and
requirements regulating the use by Tenant of the Property, including the Occupational Safety and
Health Act.
Section 5.03. Signs and Auctions. Tenant shall not place any signs on the Property
without Landlord's prior written consent. Tenant shall not conduct or permit any auctions or
sheriff's sales at the Property.
Section 5.04. Indemnity. Tenant shall hold Landlord harmless from all damages arising
out of any damages to any person or property occurring in, on,or about the premises in which
the premises are located except that Landlord shall be liable to Tenant for damage resulting from
acts or omissions of Landlord for its authorized representatives. Landlord shall hold Tenant
harmless from all damages arising out of such damage. Tenant shall defend Landlord against any
cost,claim or liability at Tenant's expense with counsel reasonably acceptable to Landlord or, at
Landlord's election,Tenant shall reimburse Landlord for any legal fees or costs incurred by
Landlord in connection with any such claim.
Section 5.05. Landlord's Access. Landlord or its agents may enter the Property at
reasonable times upon notice to show the Property to potential buyers,investors or tenants or
other parties,or for any other purpose Landlord deems necessary. Landlord shall give Tenant prior
notice of such entry, except in the case of emergency. Landlord may place customary"For Sale" or
"For Lease" signs on the Property.
Section 5.06. Quiet Possession. If Tenant pays the rent and complies with all other terms
of this Lease,Tenant may occupy and peaceably enjoy the Property for the full Lease Term,subject
to the provisions of this Lease.
ARTICLE SIX: CONDITION OF PROPERTY; MAINTENANCE,
REPAIRS AND ALTERATIONS
Section 6.01. Existing Conditions. Except as set forth in any rider requiring Landlord to
perform work on the Property prior to the Commencement Date,Tenant accepts the Property in
its condition as of the date of occupancy, subject to all recorded matters,laws, ordinances,and
governmental regulations and orders. Tenant acknowledges that neither Landlord nor any agent of
Landlord has made any representation as to the condition of the Property or the suitability of the
Property for Tenant's intended use.
Section 6.02. Exemption of Landlord from Liability. Landlord shall not be liable for
any damage or injury to the person,business (or any loss of income therefrom),goods,wares,
merchandise or other property of Tenant, Tenant's employees, invitees,customers or any other
person in or about the Property,whether such damage or injury is caused by or results from:
(a) fire, steam electricity,water,gas or rain; (b) the breakage,leakage,obstruction of other def?nit
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of pipes, sprinklers,wires, appliances,plumbing, air conditioning or lighting fixtures or any other
cause; (c) conditions arising in or about the Property or upon other portions of any building of
which the Property is a part or from other sources or places; or(d) any act or omission of any
other tenant of the building of which the Property is a part. Landlord shall not be liable for any
such damage or injury even though the cause of or the means of repairing such damage or injury
are not accessible to Tenant. The provisions of this Section 6.02 shall not, however,exempt
Landlord from liability for Landlord's gross negligence or willful misconduct.
Section 6.03. Alterations,Additions and Improvements.
(a) Tenant shall not make any alterations,additions, or improvements to the property
without Landlord's prior written consent,except for non structural alterations which do not
exceed Five Thousand Dollars ($5,000) in cost cumulatively over the Lease Term and which are
not visible from the outside of any building of which the Property is part. Landlord may require
Tenant to provide demolition and/or lien and completion bonds in form and amount satisfactory to
Landlord. Tenant shall promptly remove any alterations, additions, or improvements constructed in
violation of this Paragraph 6.03 (a) upon Landlord's written request. All alterations,additions and
improvements will be accomplished in good and workmanlike manner,in conformity with all
applicable laws and regulations, and by contractor approved by Landlord. Upon completion of any
such work,Tenant shall provide Landlord with"as built" plans,copies of all construction contracts,
and proof of payment for all labor and materials.
(b) Tenant shall pay when due all claims for labor and material furnished to the Property.
Tenant shall give Landlord at least ten(10) days'prior written notice of the commencement of any
work on the Property. Landlord may elect to record and post notices of non-responsibility on the
Property.
Section 6.04. Condition upon Termination. Upon the termination of the Lease,Tenant
shall surrender the Property to Landlord,broom clean and in the same condition as received except
for ordinary wear and tear which Tenant was not otherwise obligated to remedy under any provision
of this Lease. However,Tenant shall not be obligated to repair any damage which Landlord is
required to repair under Article Seven (Damage or Destruction). All alterations,
additions and improvements shall become Landlord's property and shall be surrendered to Landlord
upon termination of the Lease, except that Tenant may remove any of Tenant's
machinery or equipment which can be removed without material damage to the Property. In no
event,however, shall Tenant remove any of the following materials or equipment without
Landlord's prior written consent: any power wiring or power panels; lighting or lighting fixtures;
wall coverings; drapes,blinds or other window coverings;carpets or other floor coverings;fencing
or security gates;or other similar building operation equipment and decorations.
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ARTICLE SEVEN: DAMAGE OR DESTRUCTION
Section 7.07. Partial Damage to Property. Tenant shall notify Landlord in writing
immediately upon the occurrence of any damage to the Property. If the Property is only partially
damaged and if the proceeds received by landlord from the insurance policies described in
Paragraph 4.03 (b) are sufficient to pay for the necessary repairs,this Lease shall remain in effect and
Landlord shall repairthe damage as soon as reasonably possible. If the insurance proceeds received
by Landlord are not sufficient to pay the entire cost of repair,or if the cause of the damage is not
covered by the insurance policies which Landlord maintains under Paragraph 4.03 (b),Landlord may
elect either to (a) repair the damage as soon as reasonably possible in which case this Lease shall
remain in full force and effect,or(b) terminate this Lease as of the date the damage occurred.
Landlord shall notify Tenant within thirty(30) days after receipt of notice of the occurrence of the
damage,whether Landlord elects to repair the damage or terminate the Lease.
Tenant shall pay Landlord,if the damage was due to an act or omission of Tenant,the difference
between the actual cost of repair and insurance proceeds received by Landlord. If Landlord elects
to terminate this Lease,Tenant may elect to continue this Lease in full force and effect,in which
case Tenant shall repair any damage to the Property and any building in which the Property is
located, if damage was due to an act or omission of Tenant. Tenant shall pay the cost of such
repairs,except that,upon satisfactory completion of such repairs,Landlord shall deliver to Tenant
any insurance proceeds received by Landlord for the damage repaired by Tenant. Tenant shall give
Landlord written notice of such election within ten (10) days after receiving Landlord's termination
notice. If the damage to the Property occurs during the last six(6) months of the Lease term,
Landlord may elect to terminate this Lease as of the date the damage occurred,regardless of the
sufficiency of any insurance proceeds. In such event,Landlord shall not be obligated to repair or
restore the Property and Tenant shall have no right to continue this Lease. Landlord shall notify
Tenant of its election within thirty 930) days after receipt of notice of the occurrence of the damage.
Section 7.42 Total or Substantial Destruction.. If the Property is totally or substantially
destroyed by any cause whatsoever,or if the property is in a building which is substantially destroyed
(even though the Property is not totally or substantially destroyed),this Lease shall terminate as of
the date the destruction occurred regardless of whether Landlord receives and insurance proceeds.
However,if the Property can be rebuilt within 3 months after the date of destruction,Landlord may
elect to rebuild the Property at Landlord's own expense, in which
case,. this Lease shall remain in full force and effect. Landlord shall notify Tenant of such election
within thirty(30) days after the occurrence of total or substantial destruction. if the destruction was
caused by an act or omission of Tenant,Tenant shall pay Landlord the difference between the actual
cost of rebuilding and any insurance proceeds received by Landlord.
Section 7.03 Temporary Reduction of Rent. If the Property is destroyed or damaged
and Landlord or Tenant repairs or restores the Property pursuant to the provisions of this Article
Seven,any rent payable during the period of such damage,repair and/or restoration shall be
reduced according to the degree, if any,to which Tenant's use of the Property is impaired.
However,the reduction shall not exceed the sum of one year's payment of Rent. Except for such
possible reduction of Rent, Tenant shall not be entitled to any compensation,reduction,or
reimbursement from Landlord as a result of damage,destruction,repair,or restoration of or to the
Property.
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Section 7.04. Waiver. Tenant agrees that the provisions of Section 7.02 above shall govern
the rights and obligations of Landlord and Tenant in the event of any substantial or total destruction
to the Property.
ARTICLE EIGHT: CONDEMNATION
If all or any portion of the Property is taken under the power of eminent domain or sold
under the threat of that power(all of which are called"Condemnation"),this Lease shall terminate
as to the part taken or sold on the date the condemning authority takes title or possession,
whichever occurs first. If more than twenty percent(20%) of the floor area of the building in which
the Property is located,or which is located on the Property, is taken, either Landlord or Tenant may
terminate this Lease as of the date the condemning authority takes title or possession,by delivering
written notice to the other within (10) days after receipt of written notice of such taking(or in the
absence of such notice,within ten(10) days after the condemning authority takes possession). If
neither Landlord nor Tenant terminates this Lease,This Lease shall remain in effect as to the
portion of the Property not taken,except that the Base Rent shall be reduced in proportion to the
reduction in the floor area of the Property. Any Condemnation award or payment shall be
distributed in the following order: (a) first,to any ground lessor, mortgagee or beneficiary under a
deed of trust encumbering the Property,the amount of its interest in the Property; (b) second,to
Tenant,only the amount of any award specifically designated for loss of or damage to Tenant's trade
fixtures or removable personal property; and(c) third,to Landlord,the remainder of such award,
whether as compensation for reduction in the value of the leasehold,the taking of the fee, or
otherwise. if this Lease is not terminated, Landlord shall repair any damage to the Property caused
by the Condemnation, except that Landlord shall not be obligated to repair any damage for which
Tenant has been reimbursed by the condemning authority. If the severance damages received by
Landlord are not sufficient to pay for such repair,Landlord shall have the right to either terminate
this Lease or make such repair at Landlord's expense.
ARTICLE NINE: ASSIGNMENT AND SUBLETTING
Section 9.01. Landlord's Consent Required. No portion of the Property or Tenant's
interest in this Lease may be acquired by any other person or entity,whether by assignment,
mortgage,sublease,transfer,operation of law, or act of Tenant,without Landlord's prior written
consent,except as provided in Section 9.02 below.
Landlord shall grant or withhold its consent as provided in Section 9.04 below. Any attempted
transfer without consent shall be void and shall constitute a non-curable breach of this Lease. If
Tenant is a partnership,any cumulative transfer of more than 20% of the partnership interests shall
require Landlord's consent. If Tenant is a corporation,any change in a controlling interest of the
voting stock of the corporation shall require notification to Landlord.
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Section 9.02. Tenant Affiliate. Tenant may assign this Lease or sublease the Property,
without Landlord's consent,to any corporation which controls,is controlled by or is under common
control with Tenant,or to any corporation resulting from the merger of or consolidation with
Tenant's {"Tenant's Affiliate"). In such case,any Tenant's Affiliate shall assume in writing of
Tenant's obligations under this Lease.
Section 9.03. No Release of Tenant. No transfer permitted by this Article Nine,whether
with or without Landlord's consent,shall release Tenant or change Tenant's primary
liability to pay the rent and to perform all other obligations of Tenant under this Lease. Landlord's
acceptance of rent from any other person is not a waiver of any provision of this Article Nine.
Consent to one transfer is not a consent to any subsequent transfer. If Tenant's transferee defaults
under this Lease. Landlord may proceed directly against Tenant without pursuing remedies against
the transferee. Landlord may consent to subsequent assignments or modifications of this Lease by
Tenant's transferee,without notifying Tenant or obtaining its consent. Such action shall not relieve
Tenant's liability under this Lease.
Section 9.04. LandIord's Election. Tenant's request for consent to any transfer described
in Section 9.01 above shall be accompanied by written statement setting forth the details of the
proposed transfer, including the name,business and financial condition of the prospective
transferee,financial details of the proposed transfer(e.g.,the term of and rent and security deposit
payable under any assignment or sublease),and any other information Landlord
deems relevant. Landlord shall have the right (a) to withhold consent,if reasonable; (b)to grant
consent; or(c) if the transfer is a sublease of the Property or an assignment of this Lease,to
terminate this Lease as of the effective date of such sublease or assignment, in which case Landlord
may elect to enter into a direct lease with the proposed assignee or subtenant.
Section 9.05. No Merger. No merger shall result from Tenant's sublease of the Property
under this Article Nine,Tenant's surrender of this Lease or the termination of this Lease in any
other manner. In any such event,Landlord may terminate any or all subtenancies or succeed to the
interest of Tenant as sublandlord thereunder.
ARTICLE TEN: DEFAULTS; REMEDIES
Section 10.01. Covenants and Conditions. Tenant's performance of each Tenant's
obligations under this Lease is a condition as well as a covenant. Tenant's right to continue in
possession of the Property is conditioned upon such performance. Time is of the essence in the
performance of all covenants and conditions.
Section 10.02. Defaults. Tenant shall be in material default under this Lease:
(a) If Tenant abandons the Property or if Tenant's vacation of the Property results in the
cancellation of any insurance described in Section 4.04;
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(b) If Tenant fails to pay rent or any other charges required to be paid by Tenant;as and
when due;
(c) If Tenant fails to perform any of Tenant's non monetary obligations under this Lease for
a period of thirty(30) days after written notice from Landlord'provided that if more than thirty(30)
days are required to complete such performance,Tenant shall not be in default if Tenant
commences such performance within the thirty(30) day period and thereafter diligently pursues its
completion. However,Landlord shall not be required to give such notice if Tenant's failure to
perform constitutes a non-curable breach of this Lease. The notice required by this Paragraph is
intended to satisfy any and all notice requirements imposed bylaw on Landlord and is not in
addition to any such requirement.
(d) (I) If Tenant makes a general assignment or general arrangement for the benefit of
creditors; (iii) if a petition for adjudication of bankruptcy or for reorganization or rearrangement is
filed by or against tenant and is not dismissed within thirty(30) days; (iii) if a trustee or receiver is
appointed to take possession of substantially all Tenant's assets located at the Property or of
Tenant's interest in this Lease and possession is not restored to Tenant within.thirty(30) days; or(iv)
if substantially all Tenant's assets located at property or of Tenant's interest in this Lease is
subjected to attachment,execution or other judicial seizure which is not discharged within thirty
(30) days. If a court of competent jurisdiction determines that any of the acts described in this
subparagraph (d) is not a default under this lease,and a trustee is appointed to take possession
(or if Tenant remains a debtor in possession) and such trustee or Tenant transfers Tenant's interest
hereunder,the Landlord shall receive,as Additional Rent,the difference between the rent (or any
other consideration) paid in connection with such assignment or sublease and the rent payable by
Tenant hereunder.
Section 10.03. Remedies. On the occurrence of any material default by Tenant, Landlord
may,at time thereafter,with or without notice or demand and without limiting Landlord in the
exercise of any right or remedy which Landlord may have:
(a) Terminate Tenant's right to possession of the Property by any lawful means, in which
case this Lease shall terminate and Tenant shall immediately surrender possession of the Property
to Landlord. In such event,Landlord shall be entitled to recover from Tenant all damages incurred
by Landlord by reason of Tenant's default,including (I) the worth at the time of the award of the
unpaid Rent,Additional Rent and other charges which had been earned at the time of the
termination; (iii) the worth at the time of the award of the amount by which the unpaid Rent,
Additional Rent and other charges which would have been earned after termination until the time of
the award exceeds the amount of such rental loss that Tenant proves could have been reasonably
avoided;
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(P the worth at the time of the award of the amount by which the unpaid Base Rent,Additional
Rent and other charges which would have been paid for the balance of the term after the time of
award exceeds the amount of such rental loss that Tenant proves could have been reasonably
avoided;and(iv) any other amount necessary to compensate Landlord for all the detriment
proximately caused by Tenant's failure to perform its obligations under the Lease or which in the
ordinary course of things would be likely to result therefrom, including,but not limited to,any costs
or expenses incurred by Landlord in maintaining or preserving the Property after such default,the
cost of recovering possession of Property, expenses of reletting,including necessary renovations or
alteration of the Property,Landlord's reasonable attorneys'feeds incurred in connection therewith
and any real estate commission paid or payable. As used in subparts(I) and (h) above the "worth at
the time of the award" is computed by allowing interest on unpaid amounts at the rate of fifteen
(15%) per annum,or such lesser amount as may then be the maximum lawful rate. As used in
subparts (1) above,the "worth at the time of the award" is computed by discounting such amount
at the discount rate of the Federal Reserve Bank of San Francisco at the time of the award, plus 1%.
If Tenant shall have abandoned the Property,Landlord shall have the option of() retaking
possession of the Property and recovering from Tenant the amount specified in this Paragraph
(10.03 (a), or(ii) proceeding under Paragraph 10.03(b);
(b) Maintain Tenant's right to possession,in which case this Lease shall continue in effect
whether or not Tenant shall have abandoned the Property. In such event,Landlord shall be entitled
to enforce all of Landlord's rights and remedies under this Lease, including the right to recover the
rent as it becomes due hereunder,
(c) Pursue any other remedy now or hereafter or becoming available to Landlord during the
period of the Lease under the laws of judicial decisions of the state in which the Property is located.
Section 10.04. Cumulative Remedies. Landlord's exercise of any right or remedy shall
not prevent it from exercising any other right or remedy.
ARTICLE ELEVEN: PROTECTION OF LENDERS
Section 11.01 Subordination. Landlord shall have the right to subordinate this lease to any
ground lease, deed of trust on mortgage encumbering the Property,and advances made on the
security thereof and any renewals, modifications,consolidations, replacements or extensions
thereof,whenever made or recorded. However, Tenant's right to quiet possession of the Property
during the Lease Term shall not be disturbed if Tenant pays the rent and performs all of Tenant's
obligations under this Lease and is not otherwise in default.If any ground lessor,beneficiary or
mortgagee elects to have this Lease prior to the lien of its ground lease,deed of trust or mortgage
and gives written notice thereof to Tenant,this Lease shall be deemed prior to such ground lease,
deed of trust or mortgage whether this Lease is dated prior to subsequent to the date of said ground
lease, deed of trust or mortgage or the date of recording thereof.
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Section 11.02 Attornment. If Landlord's interest in the Property is acquired by any ground
lessor,beneficiary under a deed of trust, mortgagee,or purchaser at a foreclosure sale,
Tenant shall attorn to the transferee of our successor to landlord's interest in the Property and
recognize such transferee or successor as Landlord under this Lease. Tenant waives the protection
of any statue or rule of law which gives or purports to give Tenant any right to terminate this lease
or surrender possession of the Property upon the transfer of Landlord's interest.
Section 11.03. Signing of Documents. Tenant shall sign and deliver any instrument or
documents necessary or appropriate to evidence any such attornment or subordination or agreement
to do so as referred to in Sections 11.01 and 11.02. Such subordination and attornment documents
may contain such provisions as are customarily required by any ground lessor,beneficiary under a
deed of trust or mortgagee. If Tenant fails to do so within ten (10) days after written request,
Landlord may, at this option, cancel Lease.
Section 11.04. Estoppel Certificates.
(a) Upon Landlord's written request,Tenant shall execute,acknowledge and deliver to
Landlord a written statement certifying: (t) that none of the terms or provisions of this Lease have
been changed(or if they have been changed,stating how they have been changed); (u) that this
Lease has not been cancelled or terminated; (1) that the last date of payment of the Rent and other
charges and the time period covered by such payment; (iv) that Landlord is not in default under this
Lease (or,if Landlord is claimed to be in default, stating why);and (v) such other matters as maybe
reasonably required by Landlord or the holder of a mortgage, deed of trust or lien to which the
Property is or become subject. Tenant shall deliver such statement to Landlord within 30 days
after Landlord's request. Any such statement by Tenant may be given by Landlord to any
prospective purchaser or encumbrancer of the Property. Such purchaser or encumbrancer may rely
conclusively upon such statement as true and correct.
(b) If Tenant does not deliver such statement to Landlord within such 30 day period,
Landlord,and any prospective purchaser or encumbrancer, may conclusively presume and relay
upon the following facts: (i) that the terns and provisions of this Lease have not been changed
except as otherwise represented by Landlord;(u) that this Lease has not been cancelled or
terminated except as otherwise represented by Landlord; (1)that not more than one month's Rent
or other charges have been paid in advance;and(iv) that Landlord is not in default under the Lease.
In such event,Tenant shall be estopped from denying the truth of such facts.
Section 11.05. Tenant's Financial Condition. Within 30 days after written request from
Landlord,Tenant shall deliver to Landlord such financial statements as are reasonably required by
Landlord to verify the net worth of Tenant,or any assignee,subtenant, or guarantor of Tenant. In
addition, Tenant shall deliver to any lender designated by Landlord any financial statements,
required by such lender to facilitate the financing or refinancing of the Property. Tenant represents
and warrants to Landlord that each such financial statement is a true and accurate statement as of
the date of such statement. All financial statements shall be confidential and shall be used only for
the purposes set forth herein.
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ARTICLE TWELVE: LEGAL COSTS
Section 12.01. Legal Proceedings. Such costs shall include legal fees and cost incurred
from the negotiation of a settlement, enforcement of rights or otherwise. Furthermore,if any action
for breach of or to enforce the provisions of this Lease is commenced,the court in such action shall
award to the party in whose favor a judgment is entered,a reasonable sum as attorney's fees and
costs. Such attorney's fees and costs shall be paid by the losing party in such action. Tenant shall
also indemnify Landlord against and hold Landlord harmless from all costs, expenses,demands and
liability incurred by Landlord if Landlord becomes or is made a party to any claim or action(a)
instituted by Tenant,or by any third party against Tenant, or by or against any person holding any
interest under or using the Property by license of or agreement with Tenant; (b) for
foreclosure of any lien for labor or material furnished to or for Tenant or such other person; (c)
otherwise arising out of our resulting from any act or transaction of Tenant or such other person; or
(d) necessary to protect Landlord's interest under this Lease in bankruptcy proceeding, or other
proceeding under Title 11 of the United States Code,as amended. Tenant shall defend Landlord
against any such claim or action at Tenant's expense with counsel reasonably acceptable to Landlord
or, at Landlord's election,Tenant shall reimburse Landlord for any legal fees or costs incurred by
Landlord in any such claim or action.
Section 12.02. Landlord's Consent. Tenant shall pay Landlord's reasonable attorney's
fees incurred in connection with Tenant's request for Landlord's consent under Article Nine
(Assignment and Subletting),or in connection with any other act which Tenant proposes to do and
which requires Landlord's consent.
ARTICLE THIRTEEN: MISCELLANEOUS PROVISIONS
Section 13.01. Non-Discrimination. Tenant promises,and it is a condition to the
continuance of this Lease,that there will be no discrimination against,or segregation of,any person
or group of persons on the basis of race,color,sex, creed,national origin or ancestry in leasing,
subleasing,transferring,occupancy,tenure or use of the Property or any portion thereof.
Section 12.03. Waiver of Subrogation. Landlord and Tenant each hereby waive any and
all rights of recovery against the other,or against the officers, employees,agents or representatives
of the other,for loss of or damage to its property or the property of others under its control,if such
loss or damage is covered by any insurance policy in force (whether or not described in this Lease)
at the time of such loss or damage. Upon obtaining the policies of insurance described herein,
Landlord and Tenant shall give notice to the insurance carrier or carriers of the foregoing mutual
waiver of subrogation.
Section 13.03. Landlord's Liability; Certain Duties
(a) As used in this Lease,the term"Landlord" means only the current owner or owners of
the fee title to the Property or the leasehold estate under a ground lease of the Property at the time
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in question. Each Landlord is obligated to perform the obligations of Landlord under this Lease
only during the time such Landlord owns such interest or title. Any Landlord who transfers it title
or interest is relieved of all liability with respect to the obligations of Landlord under this Lease to be
performed on or after the date of transfer. However, each Landlord shall deliver to its transferee all
funds previously paid by Tenant if such funds have not yet been applied under the terms of this
Lease.
(b) Tenant shall give written notice of any failure by Landlord to perform any of its
obligations under this Lease to Landlord and to any ground lessor, mortgagee or beneficiary under
any deed of trust encumbering the Property whose name and address have been furnished to Tenant
in writing. Landlord shall not be in default under this Lease unless Landlord(or such ground lessor,
mortgagee or beneficiary) fails to cure such non-performance within thirty(30) days after receipt of
Tenant's notice. However, if such non performance reasonably requires more than thirty(30) days
to cure, Landlord shall not be in default if such cure is commence within such thirty(30) day period
and thereafter diligently pursued to completion.
(c) Upon the execution of this Lease,Tenant shall deposit with Landlord a cash Security
Deposit in the amount set forth in Section 1.11 above. Landlord may apply all or part of the
Security deposit to any unpaid rent or other charges due from Tenant or to cure any other defaults
of Tenant. If Landlord uses any part of the Security Deposit, Tenant shall restore the Security
Deposit to its full amount within(10) days after Landlord's written request. Tenant's failure to do
so shall be material default under this Lease. No interest shall be paid on the Security Deposit.
Landlord shall not be required to keep the Security Deposit separate from its other accounts and no
trust relationship is created with respect to the Security Deposit.
Section 13.04. Severability. A determination by a court of competent jurisdiction that
any provision of this lease or any party thereof is illegal or unenforceable shall not cancel or
invalidate the remainder of such provision of this Lease,which shall remain in full force and effect.
Section 13.05. Interpretation. The captions of the Article or Sections of this Lease are to
assist the parties in reading this Lease and are not a part of the terms or provisions of this Lease.
Whenever required by the context of this Lease,the singular shall include the plural and the plural
shall include the singular. The masculine,feminine and neuter genders shall each include the other.
In any provision relating to the conduct,acts or omissions of Tenant,the term"Tenant" shall
include Tenant's agents, employees,contractors,invitees,successors or others using the Property
with Tenant's expressed or implied permission.
Section 13.06 Incorporation of Phot Agreements; Modifications. This Lease is the only
agreement between the parties pertaining to the Lease of the Property and no other agreements are
effective. All amendments to this lease shall be in writing and signed by all parties. Any other
attempted amendment shall be void.
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Section 13.07 Notices. All notices required or permitted under this Lease shall be in
writing and shall be personally delivered or sent by certified mail,return receipt requested,postage
prepaid. Notices to Tenant shall be delivered to the address specified in Section 1.03 above, except
that upon Tenant's taking possession of the Property,the Property shall be Tenant's address for
notice purposes. Notices to Landlord shall be delivered to the address specified in Section 1.02
above. All notices shall be effective upon delivery or attempted delivery in accordance with this
Section 13.07. Either party may change its notice address upon written notice to the other party.
Section 13.08 Waivers. All waivers must be in writing and signed by the waiving party.
Landlord's failure to enforce any provision of this Lease or its acceptance of rent shall not be a
waiver and shall not prevent Landlord from enforcing that provision or any other provision of this
Lease in the future. No statement on a payment check from Tenant or in a letter accompanying a
payment check shall be binding on Landlord. Landlord may,with or without notice to Tenant,
negotiate such check without being bound to the conditions of such statement.
Section 13.09. No Recordation. Tenant shall not record this Lease without prior written
consent from Landlord. However, either Landlord or Tenant may require that a"Short Form"
memorandum of this Lease executed by both parties be recorded.
Section 13.10. Binding Effect; Choice of Lave. This Lease binds any party who legally
acquires any rights or interest in this Lease from Landlord or Tenant. However,Landlord shall have
no obligation to Tenant's successor unless the rights or interests of Tenant's successor are acquired
in accordance with the terms of this Lease. The laws of the state in which the Property is located
shall govern this Lease.
Section 13.11. Corporate Authority; Partnership Authority. If Tenant is a corporation,
each person signing this Lease on behalf of Tenant represents and warrants that he has full authority
to do so and that his Lease binds the corporation. Within thirty(30) days after this Lease is signed,.
Tenant shall deliver to Landlord a certified copy of a resolution of Tenant's Board of Directors
authorizing the execution of this Lease or other evidence of such authority reasonably acceptable to
Landlord. If Tenant is a partnership, each person signing this Lease for Tenant represents and
warrants that he is a general partner of the partnership,that he has full authority to sign for the
partnership and that this Lease binds the partnership and all general partners of the partnership.
Tenant shall give written notice or Landlord of any general partner's withdrawal or addition. Within
thirty(30) days after this Lease is signed, Tenant shall deliver to Landlord a copy of Tenant's
recorded statement of partnership or certificate of limited partnership.
Section 13.12. Joint Several Liability. All parties signing this Lease as Tenant shall be
jointly and severally liable for obligations of Tenant.
Section 13.13. Force Majeure. If Landlord cannot perform any of its obligations due to
events beyond Landlord's control,the time provided for performing such obligations shall be
extended by a period of time equal to the duration of such events. Events beyond Landlord's
control include,but are not limited to,acts of God,war, civil commotion,labor disputes,strikes,
fire,flood to other casualty, shortages of labor or material,government regulation or restricti d
weather conditions.
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Section 1.3.14. Execution of Lease. This Lease maybe executed in counterparts,and
when all counterparts documents are executed,the counterparts shall constitute a single binding
instrument. The delivery of this Lease by landlord to Tenant shall not be deemed to be an offer and
shall not be binding upon either party until executed and delivered by both parties.
ARTICLE FOURTEEN: BROKERS
Section 14.01. Broker's Fee. 3 e^ this Lease is sigfieElby atid delivered to both x,,.,aL.r
and Tenant, landleFd shaH pay a real estate eemRissien te Laa&r,4's BEeker named in Seetien I.G8-
is ne sueh vffittea agreement, T=aa&r,4 shag pay4ie swn stated in Seetion !A0 above fer-sefvie
is the Pfe i U ef any ether lease er-sale enter-e4 inte between lnafAeti and Tenant eeven'Fig
— ffi egeet as ef tke exeetttieii ef this Lease. if a Tenant's Br-eker-is named in
Section 14.02. Protection of Brokers. If baaE lera sans the Pr-e .en) er-assigns r.,-„11,...,14.imei5est in this .
Lease, >
--teh action shag be entided to reasonable aneme)4 fees te be paid by the les4t pan)..
T e e--- the benefit of r..mfle..,1'.. u...,ke
Section 14.03. No Other Brokers etrepresents and w ms to r,.ndle..,1 ,.ha
Br-eken named in Seetiens 1.08 and 1.09 above are the ei4y agems, brelfefs,findevs or-other-parties
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ADDITIONAL PROVISIONS ARE SET FORTH IN RIDER OR RIDERS
ATTACHED HERETO.
Landlord and Tenant have signed this Lease at the place and on the dates specified
adjacent to their signatures below and have initialed all Riders which are attached to or
incorporated by reference in this Lease.
City of Redlands Police Department Brookside San Mateo Partners, LP
By By
Print Name&Title Wm C.Buster,Jr.
"Landlord"
By
Print Name&Title Date
By
Print Name&Title
By
Print Name&Title
Signed on
Date
at Redlands,California
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ADDITIONAL PROVISIONS ARE SET FORTH IN RIDER OR RIDERS
ATTACHED HERETO.
Landlord and Tenant have signed this Lease at the place and on the dates specified
adjacent to their signatures below and have initialed all Riders which are attached to or
incorporated by reference in this Lease.
Citv of Redlands Brookside San Mateo Partners, LP
By, � By
Paul W. Foster, Mayor
Print N. e&Title Wm.C.Baster,Jr.
"Landlord"
ATTEST: /
Sam Irwin,
City Clerk
Print Name &Title Date
By
Print Name&Title
By,
Print Name&Title
Signed on 3_17-15
Date
at Redlands,California
-17-
RIDER 1
ADDENDUM TO LEASE DATED March 17, 2015 BY AND BEnVEEN
Brookside San Mateo Partners,LP LANDLORD AND City of Redlands Tenant(s)
ITEM A
Lessee herein agrees to pay any fee,license fee,license tax relative to their business and
obtain all city approvals for occupancy.
ITEM B
Tenant shall pay directly to Landlord each month the amount of $ -0-
which represents their share of water,trash and sewer costs.
l� al.
ITEM C
During the term of the Lease,if the city,county or public utilities increase fee the
structures or taxes,said increase would be pro-rated to Tenant on a square footage
basis. Evidence of said increase would accompany any change
In ial.
ITEM D
Landlord herein acknowledges receipt of deposit if First months rent in the amount of
$ -0- and last months rent in the amount of S-0-
hr'i, s
ITEM E
No vending machines by Tenant.
itial
ITEM F
Lessee to maintain air conditioning and heating unit. Lessee to maintain toilet,and basins
against clogging.Major air conditioning repairs will be borne by Lessor.
nitials
ITEM G
Lessee herein agrees to provide his/her own sign per existing center signs. All signs must be
approved by the City of Redlands and by the Landlord prior to installation.
itia s
ITEM H
Tenant leasing unit "As Is"condition.Tenant to do any and all tenant improvements. Landlord
do no improvements to the unit.
In ti
Plaza Las Palmas
Ridcr 1
ITEM I
Tenant shall have the right to extend this Lease for an additional n a year period
beginning on n/a and ending on n a . All terms and Conditions
contained herein shall remain the same except for the Rent,which may be adjusted.
Upon Landlord receiving the below thirty (30)day notice from Tenant,"the thirty(30)
Day negotiable period" shall begin. A "'Market Rent"is to be determined and agreed to
By both parties. In the event a Negotiated"'Market rent"cannot be agreed to during the
Thirty (30) day period,this option shall become void and there will be no further obligation
on behalf of the Lessor to extend the lease.
Tenant shall notify Landlord in writing no less than thirty days prior to the original expiration
date of lease of Tenant's intent to exercise such option to extend lease.
Initials
Brookside San Mateo Partners 1.11 City of Redlands Police Department
Business Dame
By Y By
Win. C.Buster,Landlord
Zai
Date: Print Namc&Title
By
Print Name&'Citle
By
Print Namc&'Title
Date:
Plaza Las Palmas
Rider 1
ITEM I
Tenant shall have the right to extend this Lease for an additional n/a year period
beginning on n/a and ending on n/a . All terms and Conditions
contained herein shall remain the same except for the Rent,which may be adjusted.
Upon Landlord receiving the below thirty(30)day notice from"Tenant,"the thirty(30)
Day negotiable period"shall begin.A "Market Rent"is to be determined and agreed to
By both parties. In the event a Negotiated"_Market rent"cannot be agreed to during the
'Iliirty(30) dal-period,this option shall become void and there xyill be no further obligation
on behalf of the Lessor to extend the lease.
Tenant shall notify Landlord in writing no less than thirty days prior to the original expiration
date of lease of'1'enant's intent to exercise such option to extend lease.
I itials
_Brookside San Mateo Partners,IT t;itri of Redlands _ r __—
Bu>incss Nanw
Bv
Wm. C.Buster,Landlord
Paul W. Foster, Mayor
Date: Prim NaA7� itle
ATTEST:
Sam Irwin, City Clerk
Print Nar.ic&Title
By
Print Name&Title
Date: 3-17-15