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HomeMy WebLinkAboutContracts & Agreements_77B-2023FIFTH AMENDMENT TO MULTI -TENANT OFFICE LEASE — GROSS This Fifth Amendment ("Fifth Amendment") to the Multi -Tenant Office Lease -Gross ("Lease"), dated September 3, 2009, is made and entered into this 1 S th day ofniaii 2023 by and between the City of Redlands, a municipal corporation and a general law city ("City"), and Betty Auton-Beck, a Professional Law Corporation ("Lessee"). City and Lessee are sometimes herein referred to individually as a "Party" and collectively as the "Parties." RECITALS WHEREAS, on September 3, 2009, Lessee entered into a Multi -Tenant Office Lease -Gross with Redlands Community Investment Corporation, a California Corporation for the lease of approximately 2,577 square feet of space at 300 East State Street, Suite 600, Redlands, California; and WHEREAS, Lessee and Redlands Community Investment Corporation amended that certain Lease Agreement with the First Addendum dated September 3, 2009, Second Addendum dated January 27, 2011, Third Addendum dated August 25, 2011, Fourth Addendum dated November 7, 2012, Fifth Addendum dated April 29, 2013, First Amendment dated October 1, 2013, Second Amendment dated November 19, 2013, and Third Amendment dated August 30, 2019; and WHEREAS, on September 21, 2021, City and Redlands Community Investment Corporation entered into an Assignment and Assumption Agreement, wherein, Redlands Community Investment Corporation assigned and transferred to City of Redlands all right title and interest in, to and under the leases for 300 East State Street; and WHEREAS, Lessee and City amended that certain Lease Agreement with the Fourth Amendment dated September 15, 2022; and WHEREAS, Lessee wishes to vacate Suite 600 and relocate to Suite 520 containing approximately 1,227 rentable square feet and City consents to said relocation; and WHEREAS, it is the desire of the City and Lessee to amend the existing Lease, specifically with regard to the Lease Term and Base Rent; NOW, THEREFORE, for good and valuable consideration in the receipt of which is hereby acknowledge City and. Lessee agree as follows: AGREEMENT Section 1. Paragraph 1.3 of the Lease, entitled "Term" is hereby deleted and replaced with the following: "1.3 Term. Three Years and one (1) month commencing on January 1, 2024 ("Commencement Date") and ending on January 31, 2027 ("Extension Term")." 1 C:\Users\lstinson\Appbata\Local\Microsoft\Windows\INetCache\Content.Outlook\56AQMX2Y\Betty Auton Beck Ste 600 - 5th Amendment to Lease.City.2023 (003).docx Section 2. Paragraph 1.5 of the Lease, entitled "Base Rent" is hereby amended to read as follows: "1.5 Base Rent. Effective January 1, 2024, (the Lease Renewal Commencement Date"), the monthly Base Rate during the Renewal Lease Term shall be as follows. Base rate shall be adjusted at the rate of Three Percent (3%) every Twelve (12) months. Month(s) January 1, 2024 January 1, 2025 January 1, 2026 January 1, 2027 — December 31, 2024 — December 31, 2025 — December 31, 2026 — January 31, 2027 Monthly Base Rent $3,681.00 $3,785.25 $3,905.17 Rent Abated Rate $3.00 per SF $3.09 per SF $3.18 per SF $0.00 Section 3. Possessory Interest Assessment. Lease of said property is subject to annual possessory interest assessment from the San Bernardino County Assessor's Office. Lessee shall pay all such fees directly to the San Bernardino County. Monthly Base Rent of January, 2027 will be abated in lieu of Lessee's payment of the possessory interest assessments. Section 4. Furniture, Fixtures & Equipment. Lessee shall be entitled to utilize any and all furniture, fixtures, equipment and other property (collectively "FF&E") that maybe upon Premises in its "as -is, where is" condition. Lessee shall be solely responsible for the maintenance, repair, and replacement of said FF&E. Lessor makes no representations, warranties, or guarantees either express or implied regarding any of the FF&E whether with respect to quality, condition, fitness for particular purposes or otherwise and Lessee is not relying upon the same. This paragraph is intended to clarify rights in and to all equipment, fixtures and furniture owned by Lessor and referenced in this Lease. Section 5. Termination Option. Lessor and Lessee confirm and agree that Lessee shall have the right to terminate this Lease at any time during the Renewal Lease Term with thirty (30) days prior written notice to Lessor. Lessor and Lessee further confirm and agree that Lessee is not be required to pay a termination fee in connection with this Termination Option. Section 6. No Broker Involvement. City and Lessee each represent and warrant to the other that is has not employed any broker in connection with this Amendment. Section 7. Integration of this Amendment and the Lease. This Amendment and the Lease shall, for all purposes, be deemed to be one instrument. In the event of any conflict between the terms and provisions of this Amendment and the terms and provisions of the Lease or other amendments, the terms and provisions of this Amendment shall, in all instances, control and prevail. Except as expressly defined herein, all words and phrases which are defined in the Lease shall have the same meaning in this Amendment as are ascribed to said words and phrases in the Lease. Section 8. Authority. Lessee represents and warrants to City that each individual executing this Amendment on behalf of Lessee is authorized to do so. Lessee also represents and warrants to 2 C:\Users\lstinson\AppData\Local\Microsoft\Windows\INetCache\Content.Outlook\56AQMX2Y\Betty Auton Beck Ste 600 - 5th Amendment to Lease.City.2023 (003).docx City that neither Lessee nor the entities or individuals constituting, owning or controlling Lessee or which may be owned or controlled by Lessee are among the individuals or entities identified on any list compiled pursuant to Executive Order 13224 for the purpose of identifying suspected terrorists. Section 9. Effect of this Amendment. Except as expressly modified or amended by this Amendment, the Lease and all terms, covenants and conditions contained therein shall remain unchanged an in full force and effect. IN WITNESS WHEREOF, the parties have executed this Fifth Amendment, to be effective as of May 15, 2023. CITY OF REDLANDS Chris Boatman, Assistant City Manager ATTEST: Donaldson, City Clerk BETTY AUTON-BECK A PROFESSIONAL LAW CORP. By: Betty Auto, -Beck, President 3 C:\Users\Istinson\AppData\Local\Microsoft\Windows\INetCache\Content.Outlook\56AQMX2Y\Betty Auton Beck Ste 600 - 5th Amendment to Lease.City.2023 (003).docx