HomeMy WebLinkAboutContracts & Agreements_68-1997_CCv0001.pdf PROPERTY NO. 13958
60000 No. 60504
SUFFIX/LEASE NO.
NET SUBLEASE SLR
LEASE AGREEMENT
I PARTIES. This LEASE AGREEMENT is between THE SOUTHLAND CORPORATION,
a Texas Corporation, herein referred to as "Landlord", and City of Redlands
herein referred to as "Tenant".
2. PREMISES. Landlord hereby leases to Tenant and Tenant leases from Landlord, for the terms and
upon the terms and conditions hereinafter set forth, the premises described in Exhibit A and outlined in red on Ex-
hibit B. located at 1381 East Citrus Avenue Redlands, CA
' which are attached hereto and made a pan hereof, together with
the building and other improvements thereon (herein the "Leased Premises").
3. CONSTRUCTION. The Tenant accepts the Leased Premises in"AS IS"condition and shall do all things
necessary to prepare the Leased Premises for its use. No representation or agreement to perform any work,except
as specifically provided for herein, is made by Landlord. Furthermore, Landlord assumes no liability for Tenant's
failure or inability to obtain any permits, authorization, licenses or any other governmental approvals necessary for
Tenant to occupy the Leased Premises for the purpose herein stated.
4. TERM. The term of this lease shall commence on the first day of September
19Y1
, and shall continue for a period of two years thereafter, ending on - August 31
19 , unless sooner terminated or extended as hereinafter provided. Should Tenant actually take possession of
the Leased Premises on other than the first day of a calendar month, Tenant agrees to pay a proportionate pan of
the monthly rental and any other amounts as herein provided for that month only.
S. RENT. Tenant agrees to pay to Landlord or its designee a rental of Five Hundred and no/100
dollars ($ 500.00---------) plus rent tax, if any, per month for each and every month during the term of this
lease, such monthly rental to be paid in advance on or before the first day of each calendar month.
Not later-than- end of-each calendar year-,Tenant-sha4thmish-Landlord a s%t�t
showing the gross sales (computed as hereinafter provided) made in the store on the Leased Pmmiseg'diiring such
calendar year. At the time such statement is furnished Tenant agrees to pay�to La itional rent due hereunder,
i
an amount of money equal to percent( sales� uc sates, the total of the monthly rentals
f
or e nur"",
paid during the preceding calendar year. 1 �2 fet this compo g sales for the purposes of this provision, Tenant shall take
the total amount of all salesil made in the store on the Leased Premises and deduct therefrom the follow-
ing to the-Catent that same are included in such total amount: (1) refunds made to customers and (2) sales, excise
owti64-reeeipts tones. such —Wal payments may be paid by ebeek and sent to Laridle d by e4inery fir-svelaS*meil.
Landlord acknowledges receipt of the SUM of Five Hundred and no/100----------------------------
----------------.dollars ($ 500.00_-------- ) in payment of the rent due for the first month.and the sum of
as a deposit(herein the"Depocit")to scc-i;&ps&faFm_n__aLt
- ------ his learis Notwithstanding anything contained herein
to the contrary or any legal requirement to the contrary, (i) Landlord may commingle the Deposit with any other
funds of Landlord whether such funds are of similar or dissimilar origin or purpose, and (ii) no interest shall be
earned, paid, payable or owing to Tenant with respect to the Deposit.
6. USE. The Leased Premises are to be used for Redlands' Pol ice bep�,,. �ub, Station
and for no other purpose whatsoever.Tenant shall at its own cost and expense n any and all lic6scs and permits
necessary for such use.In no event shall the Leased Premises be used for the storage or sale of Motor fuels or petroleum
products.
7. UTILITIES. Tenant agrees to pay,before delinquency,all charges for gas,electricity,telephone,water
and sewer, refuse collection, and any other utilities used by it.
8. TAXES. Landlord agrees to pay or cause to be paid all taxes levied against the Leased Premises.
Tenant agrees to pay all taxes levied upon personal property, including trade fixtures and inventory, kept on the
Leased Premises by Tenant. Tenant agrees to reimburse Landlord for the real estate taxes levied against the Leased
Premises.Tenant agrees that such reimbursement shall be received by Landlord within thirty(30)days after Landlord
sends to Tenant a statement showing the amount of taxes due. If the Leased Premises is pan of a shopping center,
the amount of taxes for which Tenant is liable shall be a percentage of the total amount of said taxes determined
by dividing the amount of square feet of floor space leased under this lease by the total amount of square feet of
floor space in the said center.
9. MAINTENANCE. Landlord agrees to maintain or cause to be maintained the structural soundness of
the building.Tenant agrees to repair and maintain in good tenantable condition the Leased Premises and its fixtures.
It I-- !-..... . -
10. ALTERATIONS. Tenant shall not make any alterations,additions or improvements,including any sip,
marquee, or awning, without securing Landlord's prior written consent. Any such alterations. additions or im-
provements shall be made by Tenant in a good wqrkmanlike manner without cost to Landlord and free and clear
of mechanics' and materialmen's liens. All alterations, additions or improvements shall become the property of
Landlord; however,on written notice to Tenant prior to the expiration of this lease,Tenant agrees to remove said
alterations, additions, or improvements and to restore the Leased Premises to their original condition, at Tenant's
expense.
I I. TRADE AND OTHER FIXTURES. Tenant may install or cause to be installed such equipment and
trade or other fixtures as are reasonably necessary for the operation of its business. Such equipment and trade or
other fixtures shall remain personal property. Upon Tenant's removal of the trade or other fixtures, Tenant shall
repair any damage to the Leased Premises caused by such removal.
12. CASUALTY INSURANCE. During the complete term of this lease, Tenant agrees at Tenant's ex-
pense to procure and maintain a standard "all risk" property insurance policy covering the Leased Premises in an
amount not less than 100% of its replacement value and that, subject to the rights of any bona fide first mortgage
of the Leased Premises, the proceeds of said insurance shall, at Landlord's option,be used to repair or restore the
Leased Premises in the event of damage by fire or other insured peril, or paid directly to Landlord if Landlord
exercises its option not to repair or restore the Leased Premises.The policy shall name Landlord and its mortgagee,
if applicable, as loss payees under the policy. At the inception of this lease and at least annually thereafter Tenant
shall furnish Landlord with a certificate of insurance evidencing the required insurance is in full force and effect
and providing that thirty(30)days prior written notice will be given to Landlord before the policy may be cancelled
or materially changed.
Upon the occurre'hci"ol Ay casualty or peril, Tenant shall give immediate notice to Landlord, If, in the
opinion of Landlord, the Leased Premises are rendered substantially unfit for occupancy or use by any casualty
or peril and the Landlord shall decide not to repair or restore the Leased Premises, this lease shall cease and rent
shall abate from the occurrence of such casualty or vacation of the Leased Premises, whichever is later. If, in the
opinion of Landlord, the Leased Premises are not thereby rendered substantially unfit for occupancy or use, or if
rendered substantially unfit for occupancy or use and Landlord has so elected to repair or restore, Landlord shall
promptly and diligently cause the premises to be repaired or restored and rent shall equitably abate from the occur-
rence of such casualty until completion of such repair or restoration.
13. HOLD HARMLESS. Landlord shall not be liable to Tenant or Tenant's employees,patrons or visitors
for any damage to persons or property caused by any action,omission or negligence of Tenant,its employees,patrons
and visitors, and Tenant agrees to hold Landlord harmless from all claims for any such damage; nor shall Landlord
be liable for any damage to persons or property due to the Leased Premises or any part or appurtenance thereof
being improperly constructed,or being or becoming out of repair.and Tenant accepts said Leased Premises as suitable
for the purposes for which the same are leased,and accepts the said Leased Premises and each and every appurtenance
thereof and waives defects therein.
14. LIABILITY INSURANCE. Tenant agrees at Tenant's expense to procure and maintain continuously
throughout the term of this lease, commercial general liability insurance covering the Leased Premises with limits
not less than $1.000,000 combined single limit per occurrence for bodily injury and property damage and subject
to a policy aggregate of not less than $2,000,000 for all occurrences during the policy period. The policy shall be
endorsed to include contractual liability for Tenant's indemnity obligations to Landlord as set out in this lease and
shall also name Landlord, and its Lessor, if applicable, as additional insureds. If Tenant is engaged in the selling
or distributing of alcoholic beverages, the policy shall include coverage for standard liquor liability subject to the
same limits as mentioned above. At the inception of this lease and at least annually thereafter, Tenant shall furnish
Landlord with a certificate of insurance evidencing the required insurance is in full force and effect and providing
that thirty (30)days prior written notice will be given to Landlord before the policy may be cancelled or materially
changed.
15. WAIVER OF SUBROGATION. Tenant hereby waives on behalf of itself and its insurers(none of which
shall ever acquire any claim by subrogation or otherwise), all claims and causes of action against Landlord and
its employees for any loss or damage that could be covered by insurance even if not actually so covered. All of
Tenant's insurance policies shall contain (and Tenant shall furnish Landlord satisfactory evidence that the policies
actually do contain) appropriate provisions or endorsements effectuating the foregoing waiver.
16. COMPLIANCE WITH LAWS. Tenant agrees to promptly comply with all applicable and valid laws,
18. BANKRUPTCY. Should Tenant make an assignment for
or which Landlord,at option,may terminateaH rights of Tenant
such action shall constitute a breach of this lease f 'benefit of creditors,or be adjudicated bankrupt,
under this lease. Y
19. EMINENT DOMAIN. If all or any part of the Leased Premises is taken under the power of eminent
domain or conveyed under threat of condemnation proceedings and Landlord shall determine that the remainder
is inadequate or unsatisfactory for the purposes of this lease,which dete
made, rmination shall to be arbitrarily or capriciously
then this lease shall terminate effective as of the date Tenant is required to give up the right to occupy or
use the Leased Premises.Tenant*shall have no right to make any Claim against Landlord because of such termination.
20. ATTORNEYS' FEES. Tenant hereby covenants and agrees to pay Landlord, within ten(10)days of
receipt of a statement from Landlord,the amount Landlord has PAW or will pay for legal fees,court costs,investigative
and related expenses arising from under or relating to any default or alleged default by Tenant under this lease,
whether or not Landlord elects to terminate the lease and whether or not a legal Proceeding is filed or an action
commenced. It is the intent of the parties that the provisions of this paragraph continue after the expiration or earlier
termination of this lease.
21. DEFAULT. (a) In case of default by the Tenant in any payment of otmonetary obligation,
Landlord may enforce performance of this lease in any manner provided by law, orrent ator theher option of the Landlord,
this lease may be forfeited. In the event of any default other than Payment of any rent or other monetary obligation
and such default continues for a period of ten(10)days after Landlord notifies the Tenant of such default.Landlord
may enforce performance of this lease in any manner provided by law, or, at the option of Landlord, declare in
the notice that this lease will be forfeited, and upon the expiration of said ten(10)day,period (unless Tenant shall
have within such period commenced the removal of such default and thereafter shall proceed with due diligence
until the default complained of has been removed or cured)this lease shall cease and come to an end as if that were
the day originally fixed for the expiration of the term thereof,and Landlord's agent or attorney Shall have the right
without further notice or demand to re-enter and remove all persons from the Leased Premises without being deemed
guilty of any manner of trespass and without prejudice to any remedies for arrears Of rent and/or any other amounts
due from Tenant,or breach of covenant,or Landlord's agent or attorney may resume ion of
and islet the same for the remainder of the term at the best renattorney
Possess the Leased premises such agent or a m y y in r e account
deficiency, and Landlord shall have a lien as security for the rent
of the Tenant, who shall pay to the Landlord any def UO e may obtain far th cco
reserved upon all the goods, wares, chattels, implements, machinery,equipment, fixtures,tools and other personal
property belonging to Tenant which are or may be put upon the Leased Premises.
Rent or any other amounts payable to Landlord not paid when due shall bear interest from the date due until
paid at 10% per annum or the maximum rate then permitted by law.
(b) Chronic Delinquency. In the event the Tenant defaults in its obligations under this lease more than
three(3)times in any twelve-month period at any time during the term or any extended term Of this lease,and based
upon at least three (3) of any such defaults in any twelve-month period Landlord serves Tenant with a notice or
notices pursuant to civil procedures prescribed by law,then(i)upon the service of the third such notice,any option
to extend the term of this least granted to Tenant shall become automatically null and void and of no further force
or effect, and 00 upon the occurrence of any additional default within such twelve-month period that results in the
service of an additional notice by Landlord, the minimum=tidily rent and n e rant payable by Tenant shall
immediately become due and payable quarterly in advance,throug"t the pej�Ve tag re
h remaindr Of the term and any extended
term hereof.
subhMe T,
conditions of the underlying lease attached hereto as Exhibit C under which Landlord holds the Leased ses
as lessee. Tenant covenants that it will do no act or thing which shall constitute a violation by Landlo its obliga-
tions under such underlying lease.
(a) It is expressly understood and agreed that, as this is a sublease, the obl' ons of Landlord are merely
those of the tenant under the underlying lease and are assumed only to the exte t the lessor wider the underlying
lease (the "Lessor") shall duly perform its covenants and obligations under. So long as Landlord shall not
be in default under any of the covenants or obligations of the under i g lease,Landlord shall not be liable to Tenant
for any default or failure on behalf of the Lessor in the perfo ce by the Lessor of its covenants and obligations
under the underlying lease and Tenant agrees to look sol the Lessor for the Performance of any Lessor covenants,
agreements or obligations contained in the under/ *
SAM. and Landlord shall have no duty or obligation to perform
(b) The obligations of Itwd tvnA.. *L.*- s----
23. HOLDING OVER. Should Tenant hold over the Leased Premises, or any part thereof, after the ex-
piration of the term of this lease,unless otherwise agreed in writing,such holding over(except when any underlying
lease shall have expired, in which event such holding over shall not be permitted)shall constitute and be construed
as a tenancy from month to month only, at a monthly rental equal to the rent paid for the last month of the term
Of this lease plus two hundred percent (200%) of such amount.
24. NOTICES. Any notices required or permitted hereunder shall be in writing and delivered either in per-
son to the other party or the other party's authorized agent,or by United States Certified Mad, Return Receipt Re-
quested, Postage fully prepaid, to the addressee set forth hereinafter, or to such other address as the parties may
mutually agree by amendment of this lease.
LANDLORD: THE SOUTHLAND CORPORATION
Attn: Real Estate Services
2711 North Haskell Avenue
Dallas, Texas 75204
TENANT: City of Redlands
35 Cajon Street, P. 0. Box 3005
Redlands, CA 92373
SS#/Tax I.D.
25. COMPLETE AGREEMENT. This lease contains a complete expression of the agreement between e
parties and there are no promises, representations or inducements except e e betw th
such as are herein provided. This lease
merges all prior negotiations and understandings between the parties and constitutes their entire contract which is
binding upon Tenant and the heirs, executors, administrators, successors and assigns of Tenant when executed by
Tenant,and is binding upon Landlord, its successors and assigns,only if executed by a Vice President or Attorney-
in-Fact of Landlord, regardless of any written or verbal representation of any agent, manager or other employee
of Landlord to the contrary.
26. NON-WAIVER. The waiver by Landlord of any breach of any term, covenant, or condition herein
contained shall not be deemed to be a waiver of such term, covenant of condition or 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 byTenant of any term,covenant,or condition
of this lease, other than the failure of Tenant to pay the particular rental,so accepted, regardless of the Landlord's
knowledge of such preceding breach at the time Of acceptance of such rent.
27. Tenant and Landlord covenant, warrant and represent that to their knowledge, there is no broker other
than Infit-pen(itmi r)tjvtjl()()11,en,
, i.(_11:1)df)y (herein the "Broker") involved in the negotiations or
consummation of this lease. Landlord shall pay the commission in accordance with a separate agreement between
Landlord and Broker. Tenant and Landlord agree to hold the other harmless against any claim by another broker
for a commission resulting from any act of it.
EXECUTED by LANDLORD this day of 19_ .
THE SOUTHLAND CORPORATION
Assistant Secretary By (sea])
Vice President or
Attornev-in-Fact
be ie
,
EXH1b1*1' A
1'al"Cul "E "
1� 1 that portion of clock "0" Of L ucjonia it) the
Ci :}, of Rcdlands , County of San Barna.—,1ino, State of
Calviornia, as per plat raco:;ded in Book 4 of 1-,ops , fare
50, racords of said County, morn particularly da,cribed
as 'ollows ;
CO?:•).EtNOIN'G at the Wortheast corner of said
Block "0" of Lugonia Nark being also the r'orth- '
east, corner of Woeh;: 'Tract, being a replat of °v
Lots 41 to 19, inclusive, of srid Block 110" of
Lugonia Par): as per plat recorded in Book 1-) of
taps, page 15 , records of said Count),; thence
�Nlorth 09000 ' 00'; West, ulottg the Oorth lige of
said Block 110" a distance of 241 . 12 feet to a '
Point in a line parallel witit and distant 530 . 00
feet Easterly, treasured at right angles from the
most Westerly line of Lots 4 and 19 of said
Block "0" ; thence South 0°13115" 49est, along
said parallel lige, a distance of 335 . 20 feet
4o the True Point of Beginning; thence continu-
ing South 00131151, West, along said parallel
lige, a distance of 150 . 00 r"eLL• to a uoill on a
line parallel ti:itl� and distant of 44 , U0 feet
,,L):•therly, measured at riobt, ano'las from the
line of Citrus lhvenuc, thance ilortlt
ua °34 ' 15" East, along said parallel litre, a dis-
w.,r,cu of 93 . 20 feet to a po;:It; on. a litre parallel
4,ith and distant of 181 . 75 ::eet Wasteriv, measured
e;t right- angles ::rout %-11(i canter line of Judson
S: ree;. ; thence North 001,4 ' 15" West, along said
~".rallel line a distance: of 1,:9. 69 feet; thence
S ,uth 69045 ' 415" i,est, a distance' ,of 92 . 00 ,feet;
Lo t);a '1'a.•ue I'o:int of Beginning.
THE LEASED PREMISES DESCRIBED IN THE LEASE ATTACHED
HERETO IS THAT PORTION OF THE ABOVE DESCRIBED PItOPEtt'1"Y
AS OUTLINED IN "RED" ON ATTACHED • rgUl s--u :: EXHIBIT "B".
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Property #60504
ADDENDUM
ATTACHED HERETO and made a part thereof, of that certain lease agreement dated 8 l 5 J 97
by and between THE SOUTHLAND CORPORATION, a Texas corporation, referred to as
LANDLORD and City of Redlands, referred to hereinafter as TENANT.
29. CALIFORNIA CIVIL CODE 0 179 BAD CHECKS - PUNITIVE DAMAGES.
Notwithstanding any penal sanctions which may apply, any person who makes, utters,
draws, or delivers any check, or draft, or order upon any bank or depository, or person,
or firm, or corporation, for the payment of money, which refuses to honor the same for
lack of funds or credit to pay, or because the maker has no account with the drawee, and
who fails to pay same amount in cash to payee within 30 days following a written
demand therefor delivered to the maker by certified mail, shall be liable to the payee, in
addition to the amount owing, but in no case less than one hundred dollar ($100.00) and
in no case more than five hundred dollars ($500.00).
A cause of action under this section may be brought in small claims court, if it does not
exceed the jurisdiction of that court, or in any other appropriate court.
30. EXCLUSIVE. TENANT agrees that during the term of this lease and extensions hereof
no occupant of the herein Ieased building shall operate pinball machines and electronic
games or shall be allowed to sell any item offered for sale in a 7-Eleven store.
TENANT agrees to protect LANDLORD'S exclusive right to sell such items in any
future sales of his business or assignment of his interest in this lease agreement to
another party. If a court shall find theses covenants unenforceable in any way, they shall
remain in effect as enforceable.
31. EXCLUSIVE PARKING. The parking spaces located directly in front of the 7-Eleven
Store, as outlined in green on Exhibit B attached hereto shall be for the exclusive use of
LANDLORD and LANDLORD'S franchisees, employees, customers and invitees. All
remaining parking stalls shall be for the non-exclusive use of LANDLORD and
TENANT.
INIi l
INITIAI.