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HomeMy WebLinkAboutContracts & Agreements_226-2024LEASE THIS LEASE, referred to herein as the "Lease," is made and entered into as of February 4, 2025 (the "Effective Date") by and between REDLANDS HISTORICAL MUSEUM ASSOCIATION, a California nonprofit public benefit corporation (which is also a 501(c)(3) corporation), hereafter referred to as "Landlord" and THE CITY OF REDLANDS, a California Municipal Corporation and General Law City, hereafter referred to as "Tenant". Landlord and Tenant may be referred to as each a "Party" or collectively as the "Parties". RECITALS A. Landlord is the owner of the real property located in Redlands, California, commonly referred to as 1 North Center Street, Redlands, CA (APN 0 1711913 00000) consisting of a parcel of land together with all easements and appurtenances thereto, and a recently constructed multi -purpose event and exhibition building and related offices (the `Building") and all other improvements located thereon ("Premises"). B. Lessor and Lessee wish to enter this Lease to provide access to the Premises to Lessee and in anticipation of a contemplated donation of the Premises to Lessee while allowing for Lessee to assume the costs of maintenance and operations prior to donation. AGREEMENT NOW, THEREFORE, the Parties agree as follows: 1.0 LEASE AND USE OF PREMISES 1.1 In consideration of the provisions of this Lease, Landlord leases to Tenant and Tenant leases from Landlord, the Premises, together with all easements and appurtenances thereto. The uses Tenant may make of the Premises during the term of the Lease shall be limited exclusively to the following: a. Staging and installation of exhibits related to the museum's collections or other city - approved cultural displays. b. Storage of museum exhibits, artifacts, and related materials. c. Setting up and configuring offices for potential fiiture use, including administrative planning and preparation for full operations. d. Other activities related to preparation for full operations and promotion of the Premises (such as tours). e. Other activities (other than as set forth in paragraphs a-d above) only with the express written permission of Landlord which shall not be unreasonably withheld, conditioned or delayed. f. Tenant shall not make any structural alterations or significant improvements or changes to the Premises without written consent of Landlord. Any such alterations must comply with all relevant laws, building codes and regulations. 1.2 With the prior Notice to AK Smiley Library Director Don McCue, or the City Manager or his designee, Landlord shall have access to the Premises during the Lease term to complete 2 l:\cmo\Agreements\Redlands Historical Musa" Lease FY24-0088.doex-ins any ongoing construction and for inspections, social events, fundraising and donor outreach functions and tours, and other administrative uses. Landlord currently has events scheduled in 2025 on the following dates: January 15, 16, 25, and February 2. Landlord shall submit to City a special event application, consistent with City's standard requirements for such events a minimum of four weeks in advance. City shall review the special event application and either approve or provide comment on the application within one week following submittal. Approval for events shall not be unreasonably withheld by City. Landlord may also provide tours consisting of less than 15 attendees with a minimum of 48 hours advanced notice. No such events shall take place until a Certificate of Occupancy for the Premises suitable to Tenant is in place. Notwithstanding anything herein to the contrary, Landlord shall be in compliance with Section 10 prior to any access and use of the Premises by Landlord or any employee, agent or contractor of Landlord, and any such use shall be subject to the terms of Section 12.2. 2.0 RENT AND TERM 2.1 Term. The Lease shall commence on February 4, 2025, and continue for four (4) months until and including June 30, 2025 (the "Term"). Tenant shall have the right to extend the Term of this Lease, at its option, for two additional months on the same terms as contained herein upon providing Landlord with thirty (30) days' notice in writing prior to the end of the original term. Subsequent terms may be agreed upon by the Parties in writing. The Lease shall be automatically terminated in the event the Premises are transferred to Tenant prior to the expiration of the Lease. 2.2 Rent. Tenant agrees to pay to Landlord monthly, on or before the first day of each month, the sum of $6,000.00 as rent. Rent shall be paid in immediately available funds to "Redlands Historical Museum Association." In addition to this sum, Tenant shall be responsible during the Term of this Lease to pay directly all costs for electricity, gas, water, internet, telephone service, waste disposal, and sewer that relate to the Premises. Tenant shall also be responsible for all janitorial services within the Premises during the Term of the Lease. Landlord shall be responsible for all maintenance, other than janitorial services, of the interior and exterior of the Premises, including all landscaping. 3.0 PROPERTY TAXES 3.1 Landlord and Tenant acknowledge that no property taxes are expected to be owing or payable as to the Premises during the Term of this Lease. If any property taxes are payable during the Term of this Lease, Landlord shall be responsible for payment. 4.0 WORK OF IMPROVEMENT 4.1 Landlord shall have no obligation to perform any work with respect to the Premises except as needed to obtain a Certificate of Occupancy (the "Work"). Following completion of such. Work, Tenant shalt accept the Premises in a strictly "AS -IS" condition, provided, however, that Landlord shall deliver: the structural components of the Building and building systems (pl unbing, electrical, HVAC, fire/life/safety) in good working order as of the date of completion of the Work and the roof and Building envelope water tight. Unless otherwise specified herein, no promise of Landlord to alter, remodel, repair or improve the Premises has been made to Tenant by Landlord. 19cmo\Agreements\Red1ands Historical Musemn Lease FY24-0088.doex-ins 5.0 LEASEHOLD IMPROVEMENTS: TENANT'S PROPERTY 5.1 All movable partitions, business and trade fixtures, machinery and equipment, communications equipment and office equipment located in the Premises and acquired by or for the account of Tenant, which can be removed without structural damage to the Building, and all furniture, furnishings and other articles of movable personal property owned by Tenant and located in the Premises (collectively "Tenant's Property") shall be and shall remain the property of Tenant and may be removed by Tenant at any time during the Term; provided that if any of Tenant's Property is removed, Tenant shall promptly repair any damage to the Premises or to the Building resulting from such removal. 6.0 ASSIGNMENT AND SUBLETTING 6.1 No assignment or hypothecation of this Lease and no subletting of all or any part of the Premises shall be permitted, without the prior written consent of Landlord. Any of the foregoing acts without Landlord's consent shall be void and shall, at the option of Landlord, terminate this Lease. 7.0 HOLDING OVER 7.1 If after expiration of the Term, as such Term may have been extended as provided in Section 2.1 of this Lease, Tenant remains in possession of the Premises with Landlord's permission (express or implied), Tenant shall become a tenant from month to month only, upon all the provisions of this Lease (except as to term), and unless otherwise specified herein, such tenancy shall (a) have a rent of one hundred percent (100%) of the rent payable during the last month of the Term; and (b) Tenant shall otherwise continue to be subject to all of Tenant's obligations under this Lease. Such rent shall be payable in advance on or before the first day of each month. If either Party desires to terminate such month -to -month tenancy, it shall give the other Party not less than thirty (30) days advance written notice of the date of termination; provided that in such event Tenant shall have up to ninety (90) days following the termination of this Lease to remove all personal property from the Premises and make any repairs to the Premises as may be required pursuant to Section 5.1 of this Lease. 8.0 SURRENDER OF PREMISES 8.1 No act by Landlord shall be deemed an acceptance of a surrender of the Premises, and no agreement to accept a surrender of the Premises shall be valid unless it is in writing and signed by Landlord. 9.0 REPRESENTATIONS AND WARRANTIES 9.1 Tenant represents and warrants to Landlord as follows: a. That the execution and delivery of this Lease by Tenant does not contravene, result in a breach of, or constitute a default under any contract or agreement to which Tenant is a party or by which Tenant may be bound and does not violate or contravene any law, order, decree, rule or regulation to which Tenant is subject. b. There are no judicial or administrative actions, suits, or proceedings pending or to Tenant's knowledge threatened against or affecting Tenant. lAcmo\Agrcements\Redlands Historical Museum Lease PY24-0088.docx-ms c. Tenant, upon Landlord's request, will deliver evidence satisfactory to Landlord that the execution and delivery of this Lease has been duly authorized and properly executed by Tenant. d. Where applicable, Tenant has obtained all licenses, permits and certificates necessary for the use and operation of the Premises, except where the failure to have such licenses, permits and certificates would not materially and adversely affect the value, use or operation of the Premises. 9.2 Landlord represents and warrants to Tenant as follows: a. Landlord is the sole and exclusive owner of fee simple title to the Premises and has the full right and power to grant to Tenant the leasehold interest created by this Lease. b. Landlord has no written or oral agreement or contractual or other restrictions which would materially and adversely affect the use of the Premises by Tenant. c. That the execution and delivery of this Lease by Landlord does not contravene, result in a breach of, or constitute a default under any contract or agreement to which Landlord is a party or by which Landlord may be bound and does not violate or contravene any law, order, decree, rule or regulation to which Landlord is subject. d. Landlord, upon Tenant's request, will deliver evidence satisfactory to Tenant that the execution and delivery of this Lease has been duly authorized and properly executed by Landlord. e. No claims, lawsuits or allegations of any kind, are pending, or to the best of Landlord's knowledge, threatened or asserted, against or affecting the Premises. f. No eminent domain proceedings for the condemnation of the Premises are pending or, to the best of Landlord's knowledge, threatened. g. To the best of Landlord's knowledge, there are no design, material or structural defects in the improvements situated on the Premises. h. Landlord and its tenants of the Premises have access to and a valid right to utilize all access roads, easements and rights -of -way serving the Premises. 10.0 INSURANCE 10.1 Liability Insurance. Tenant shall, at its sole cost and expense, maintain comprehensive public liability insurance with combined single limits of liability of not less than two million dollars ($2,000,000.00) per occurrence, for bodily injury or property damage, insuring against any and all liability of Tenant with respect to the Premises or arising out of the maintenance, use or occupancy of the Premises by Tenant. Annually, during the term of this Lease. Landlord shall review such limits of liability and if Landlord determines in its reasonable discretion, that such limits are inadequate, then the limits of liability which Tenant shall be required to maintain under this Section shall be increased to an amount which Landlord reasonably determines is adequate. 1Acino\Agreements\Redlands Historical Museum Lease RY24-0088.docx-ras 10.2 Property Insurance. Tenant, at its sole cost and expense, shall keep the Premises insured against loss or damage by fire and other risks embraced by coverage of the type now known as extended coverage (excluding flood and earthquake coverage, except for sprinkler leakage caused by earthquake, and insurance covering loss of rents by Landlord for a minimum period of one (1) year), and against such other risks or hazards as Landlord may from time to time designate, in an amount not less than one hundred percent (100%) of the then fill replacement cost of the Premises without deduction for physical depreciation. Such policy or policies shall contain a replacement cost endorsement and full replacement cost shall be determined from time to time by the insurance carrier, upon the request of Landlord or Tenant. 10.3 Other Types of Insurance. Tenant, at its sole cost and expense, shall maintain such other insurance in such amounts, as may from time to time be required by Landlord, against other insurable hazards which at the time are commonly insured against in the case of premises similarly situated, due regard being given to the height and type of buildings thereon and their construction, use and occupancy. Without limiting the effect of the forgoing, Tenant, at its sole cost and expense, shall maintain the following insurance: a. Workers compensation insurance covering all persons employed by Tenant and with respect to whom death or bodily injury claims could be asserted against Landlord, Tenant or the Premises, with statutory limits as then required under the laws of the State of California; and b. Automobile Liability insurance covering all owned, non -owned, and hired vehicles with a $1,000,000 per accident limit for bodily injury and property damage; and c. Umbrella liability policy "following form" of not less than Two Million Dollars ($2,000,000), including a "drop down" feature in case the limits of the primary policy are exhausted; and d. In the event Tenant will generate, handle, use, or store Hazardous Substances at the Premises, pollution legal liability insurance of not less than One Million Dollars ($1,000,000). 10.4 Nature of Policies. All insurance which Tenant maintains shall be affected under valid and enforceable policies issued by insurers of recognized responsibility which are admitted to transact business in California and which have a rating of B+5 or better in the then current edition of Bests Key Rating Guide. Upon execution of this Lease and thereafter, not less than thirty (30) days prior to the expiration date of each policy furnished by Tenant, the original of each policy (or with Landlord's consent, a certificate of the insurance carrier which is reasonably satisfactory to Landlord) bearing a notation evidencing the payment of the premium or accompanied by other evidence reasonably satisfactory to Landlord of such payment, shall be delivered to Landlord. At all times, Landlord shall have the right to require duplicate certified copies of all policies of insurance required to maintained by Tenant as provided in this Lease. In addition, each policy of insurance which is maintained by Tenant, shall contain (a) a provision that no act or omission of Tenant which would otherwise result in forfeiture or reduction of the insurance, shall affect or limit the obligation of the insurance carrier to pay the amount of any loss sustained, (b) a provision waiving subrogation against Landlord and (c) an agreement by the insurance carrier that such policy shall not be modified or cancelled without at least thirty (30) days prior notice, in writing, to Landlord. Notwithstanding anything in this Section 10 to the contrary, Tenant 6 I:\croo\Agreements\Redlands Historical Museum Lease FY24-0088.docx-ms may self -insure for the Tenant insurance coverages stated above by notifying Landlord that Tenant has elected to self -insure for such coverages. 10.5 Landlord as Additional Insured and Adjustment of Loss. All policies of insurance maintained by Tenant shall name Landlord as an additional insured and shall provide for loss under any such policy of insurance, to be adjusted by Landlord. 10.6 Tenant Compliance with Policies. Tenant shall observe and comply with the requirements of all policies of insurance at any time in force with respect to the Premises and Tenant shall also perform and satisfy the requirements of the insurance carriers of such policies, so at all times companies of good standing which are satisfactory to Landlord shall be willing to write or to continue such insurance. 10.7 Tenant's Certification of Insurance. Tenant shall furnish Landlord annually, or more often in the event that Landlord requires, a certificate signed by an authorized officer of Tenant containing a detailed list of the insurance policies maintained by Tenant which are then outstanding and in force with respect to the Premises and stating that such insurance complies with the requirements of this Section 10. Such certificates shall also be provided in the event Tenant has elected to meet its insurance obligations with self-insurance in accordance with Section 10.4, above. 10.8 Landlord's Insurance. Landlord shall maintain and cause any contractor performing services at the Premises to maintain, as applicable, the following insurance: (a) Commercial General liability insurance. Landlord shall maintain, and cause any contractor performing services at the Premises to maintain, commercial general liability insurance with combined single limits of liability of not less than $2,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. (b) Workers Compensation. Workers compensation insurance covering all persons employed Landlord, and any persons employed by any contractor performing services at the Premises (or cause such contractor to maintain workers compensation insurance with respect to such contractor's employees), and with respect to whom death or bodily injury claims could be asserted against Landlord, Tenant or the Premises, with statutory limits as then required under the laws of the State of California. (c) Automobile Liability. Automobile liability insurance covering all owned, non - owned, and hired vehicles with a $1,000,000per accident limit for bodily injury and property damage. (d) Umbrella Liability. Umbrella liability policy "following form" of not less than Two Million Dollars ($2,000,000), including a "drop down" feature in case the limits of the primary policy are exhausted. 7 1:\cma\Agreements\Red1ands Flislolical Musenm Lease FY24-0088.doex-ins 11.0 DESTRUCTION OR DAMAGE 11.1 If the Premises or any portion thereof are destroyed or damaged, Tenant shall at its own expense, promptly repair the damage, and Landlord shall make any applicable and available insurance proceeds available for such purpose. 11.2 In the event that then existing laws do not permit the restoration of the Premises to substantially the same nature as they we immediately before any such destruction or damage or in the event that the Premises are, in Landlord's opinion, substantially or totally destroyed, then at Landlord's sole election, this Lease shall terminate as of the date of such destruction or damage and all insurance proceeds for damage or loss to the Premises shall be paid to Landlord and all insurance proceeds for damage or loss to the leasehold improvements and to Tenant's property shall be retained by Tenant. 12.0 INDEMNIFICATION 12.1 Without limiting Tenant's obligation to maintain insurance under Section 10 hereof, Tenant shall indemnify and hold Landlord harmless against and from liability and claims of any kind for loss or damage to property of Tenant or any other person, or for any injury to or death of any person, arising out of. (1) Tenant's use and occupancy of the Premises, or any work, activity or other thing allowed or suffered by Tenant to be done in, on or about the Premises; (2) any breach or default by Tenant of any of Tenant's obligations under this Lease; or (3) any negligent or otherwise tortious act or omission of Tenant, its agents, employees, invitees or contractors; provided that such indemnity shall not extend to any liability or claim to the extent arising from the occurrence of any event or circumstance for which indemnity by the Landlord is provided for pursuant to Section 12.2. Tenant shall, at Tenant's expense, and by counsel reasonably satisfactory to Landlord, defend Landlord in any action or proceeding arising from any such claim and shall indemnify Landlord against all costs, reasonable attorneys' fees, expert witness fees and any other reasonable expenses incurred in such action or proceeding. As a material part of the consideration for Landlord's execution of this Lease, Tenant hereby assumes all risk of damage or injury to any person or property in, on or about the Premises from any cause. 12.2 Landlord shall indernify and hold Tenant harmless against and from liability and claims of any kind for loss or damage to properly of Landlord or any other person, or for any injury to or death of any person, arising out of. (1) Landlord's use of the Premises, or any work, activity or other thing allowed or suffered by Landlord to be done in, on or about the Premises; (2) any breach or default by Landlord of any of Landlord's obligations under this Lease; or (3) any negligent or otherwise tortious act or omission of Landlord, its agents, employees, invitees or contractors; provided that such indemnity shall not extend to any liability or claim to the extent arising from the occurrence of any event or eircrunstance for which indemnity by the Tenant is provided for pursuant to Section 12.1. Landlord shall, at Landlord's expense, and by counsel reasonably satisfactory to Tenant, defend Tenant in any action or proceeding arising from any such claim and shall indemnify Tenant against all costs, reasonable attorneys' fees, expert witness fees and any other reasonable expenses incurred in such action or proceeding. As a material part of the consideration for Landlord's use of the Premises for special events and tours as set forth in Section 1.2, Landlord hereby assumes all risk of damage or injury to any person or property in, on or about the Premises from any cause. 13.0 WAIVER OF SUBROGATION 13.1 Landlord and Tenant each hereby waive all rights of recovery against the other and against the officers, employees, agents and representatives of the other, on account of loss by or damage to the waiving party or its property or the property of others under its control, to the extent that l:\cmo\Ageements\Redlands Historical Musemn Lease FY24-0088.doex-ms such loss or damage is insured against under any insurance policy which either may have in force at the time of the loss or damage. 14.0 TENANT ESTOPPEL CERTIFICATES 14.1 Within ten (10) days after written request from Landlord, Tenant shall execute and deliver to Land- lord or Landlord's designee, a written statement certifying (a) that this Lease is unmodified and in full force and effect, or is in full force and effect as modified and stating the modifications; (b) the amount of rent and the date to which rent and any additional rent have been paid in advance; and (c) that Landlord is not in default hereunder or, if Landlord is claimed to be in default, stating the nature of any claimed default. Any such statement may be relied upon by a purchaser, assignee or lender. Tenant's failure to execute and deliver such statement within the time required shall be conclusive upon Tenant that: (1) this Lease is in fill force and effect and has not been modified except as represented by Landlord; (2) there are no uncured defaults in Landlord's performance and that Tenant has no right of offset, counterclaim or deduction against Rent; and (3) not more than one (1) month's Rent has been paid in advance. 15.0 TRANSFER OF LANDLORD'S INTEREST 15.1 In the event of any sale or transfer by Landlord of the Premises, Landlord shall be and is hereby entirely freed and relieved of any and all liability and obligations contained in or derived from this Lease arising out of any act, occurrence or omission relating to the Premises occurring after the consummation of such sale or transfer. If any security deposit or prepaid rent has been paid by Tenant, Landlord may transfer the security deposit or prepaid rent to Landlord's successor and upon such transfer, Landlord shall be relieved of any and all further liability with respect thereto. In such event, Tenant shall attorn to the purchaser, transferee or assignee as the case may be, and recognize that party as Landlord under this Lease. 15.2 Notwithstanding anything herein to the contrary, no assignment, transfer or conveyance of the Premises by Landlord shall be permitted without the prior written consent of Tenant, which consent may be withheld in Tenant's sole and absolute discretion, and any such transfer or conveyance without Tenant's consent shall be a breach of this Lease, In the event of any such assignment, transfer or conveyance without Tenant's consent, Tenant may, at the option of Tenant, terminate this Lease upon written notice to Landlord. 16.0 DEFAULT 16.1 Tenant's Default. The occurrence of any one or more of the following events shall constitute a default and breach of this Lease by Tenant: a. If Tenant abandons or vacates the Premises; or b. If Tenant fails to pay any rent or any other charges required to be paid by Tenant under this Lease and such failure continues for ten (10) days after written notice thereof from Landlord to Tenant, provided that Landlord shall no longer be required to give such notice if the payment is late more than one time in any calendar year; or c. If Tenant fails to promptly and fully perform any other covenant, condition or agreement contained in this Lease and such failure continues for thirty (30) days after written notice thereof from Landlord to Tenant; provided if such default cannot reasonably be cured within such thirty (30) days period, and Tenant has commenced curing that default within that thirty (30) day period and thereafter diligently and expeditiously proceeds to cure that default, then that thirty (30) day period will be extended for so long as reasonably required by Tenant in the exercise of due diligence to cure that default, tip to a maximum of 90 days after the notice to Tenant of the default; or 9 I:\cmo\Agreements\Redlands nistorieal Museum Loose FY24-0088.docx-ins d. If a writ of attachment or execution is levied on this Lease or on any of Tenant's property and is not satisfied or released within fifteen (15) days of such levy; or e. If Tenant makes a general assignment for the benefit of creditors, or provides for an arrangement, composition, extension or adjustment with its creditors; or If Tenant files a voluntary petition for relief or if a petition against Tenant in a proceeding under the federal bankruptcy laws is filed and not withdrawn or dismissed within sixty (60) days thereafter, or if under the provisions of any law pro- viding for reorganization or winding up of corporations, any court of competent jurisdiction assumes jurisdiction, custody or control of Tenant or any substantial part of its property and such jurisdiction, custody or control remains in force relinquished, unstayed or unterminated for a period of sixty (60) days. 16.2 Remedies. In the event of Tenant's default hereunder, then in addition to any other rights or remedies Landlord may have under any law and at equity, Landlord shall have the right, at Landlord's option, without further notice or demand of any kind to do the following: a. Terminate this Lease and Tenant's right to possession of the Premises, and reenter the Premises and take possession thereof, and Tenant shall have no further claim to the Premises under this Lease; or b. Continue this Lease in effect, reenter and occupy the Premises for the account of Tenant; or c. Continue this Lease in effect, reenter and occupy the Premises for the account of Tenant and collect any unpaid rent or other charges which have or thereafter become due and payable. 16.3 Waiver. The waiver by Landlord of any breach of any term, covenant or condition of this Lease shall not be deemed a waiver of such term, covenant or condition or of any subsequent breach of the same or any other term, covenant or condition. Acceptance of rent by Landlord subsequent to any breach hereof shall not be deemed a waiver of any preceding breach other than the failure to pay the particular rent so accepted, regardless of Landlord's knowledge of any breach at the time of such acceptance of rent. Landlord shall not be deemed to have waived any term, covenant or condition unless Landlord gives Tenant written notice of such waiver. 16.4 Landlord's Default. If Landlord fails to perform any covenant, condition or agreement contained in this Lease within thirty (30) days after receipt of written notice from Tenant specifying such default, provided if such default cannot reasonably be cured within such thirty (30) days period, and Landlord has commenced curing that default within that thirty (30) day period and thereafter diligently and expeditiously proceeds to cure that default, then that thirty (30) day period will be extended for so long as reasonably required by Landlord in the exercise of due diligence to cure that default, up to a maximum of 90 days after the notice to Landlord of the default, then Landlord shall be liable to Tenant for any damages sustained by Tenant as a result of Landlord's breach. If, after notice to Landlord of default, Landlord (or any mortgage or deed of trust beneficiary of Landlord) fails to cure the default as provided herein, then Tenant shall have the right to cure that default at Landlord's expense. 16.5 Remedies Cumulative. The various rights and remedies reserved to Landlord in this Lease, including those not specifically described in this Lease, shall be cumulative and Landlord may pursue any or all of such rights and remedies, whether at the same time or otherwise. 10 1:\ano\Ageeements\Redlands Historical Museum Leaso FY24-0088.docx-ms 16.6 Late Charge. WITHOUT LIMITING THE EFFECT OF ANY OTHER PROVISION IN THIS LEASE, IF TENANT IS FIFTEEN (15) DAYS OR LATER IN THE PAYMENT OF ANY SUM DUE LANDLORD UNDER THIS LEASE, LANDLORD AND TENANT AGREE THAT IT WOULD BE IMPRACTICABLE AND EXTREMELY DIFFICULT TO ASCERTAIN THE ACTUAL RESULTING DAMAGES TO LANDLORD. ACCORDINGLY, LANDLORD AND TENANT AGREE THAT FIVE PERCENT (5%) OF THE LATE PAYMENT IS A REASONABLE ESTIMATE OF SUCH DAMAGES AND SHALL CONSTITUTE LIQUIDATED DAMAGES PAYABLE BY TENANT TO LANDLORD IN EACH SUCH VENT. Landl rd Initials Tenant (Initials 17.0 CURING TENANT'S DEFAULTS 17.1 If Tenant defaults in the performance of any of its obligations under this Lease, Landlord may (but shall not be obligated to) without waiving such default, perform the same for the account and at the expense of Tenant. Tenant shall pay Landlord all reasonable costs of such performance promptly upon receipt of an itemized bill therefor. 18.0 MISCELLANEOUS 18.1 Accord and Satisfaction, Allocation of Payments. No payment by Tenant or receipt by Landlord of a lesser amount than the rent provided for in this Lease shall be deemed to be other than on account of the earliest due rent, nor shall any endorsement or statement on any check or letter accompanying any check or payment as rent be deemed an accord and satisfaction, and Landlord's right to recover the balance of the rent or pursue any other remedy provided for in this Lease. In connection with the foregoing, Landlord shall have the absolute right in its sole discretion to apply any payment received from Tenant to any account or other payment of Tenant then not current and due or delinquent. 18.2 All provisions of this Lease to be performed by Tenant, whether covenants or conditions on the part of Tenant, shall be deemed to be both covenants and conditions. 18.3 Attorneys' Fees. If any action or proceeding is brought by either party against the other pertaining to or arising out of this Lease, the finally prevailing party shall be entitled to recover all costs and expenses, including reasonable attorneys' fees, incurred on account of such action or proceeding. 18.4 Waiver of Jury Trial. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, LANDLORD AND TENANT HEREBY AGREE NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVE ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT NOW OR HEREAFTER EXISTS WITH REGARD TO THIS LEASE. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY BY LANDLORD AND TENANT, AND IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY JURY WOULD OTHERWISE ACCRUE. LANDLORD OR TENANT IS HEREBY AUTHORIZED TO FILE A COPY OF THIS SECTION IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER. 11 I:lcmolAgreementsaedlands Historical Museum Lease FY24-0088.docx ms 18.5 motions Articles and Section Numbers. The captions appearing within the body of this Lease have been inserted as a matter of convenience and for reference only and in no way define, limit or enlarge the scope or meaning of this Lease. 18.6 Choice of Law and Forum. This Lease shall be construed and enforced in accordance with the laws of the State of California. Any action with respect to this Lease shall be brought in any court with jurisdiction in the County of San Bernardino. 18.7 Counterparts, This Lease may be executed in multiple counterparts, all of which shall constitute one and the same Lease. 18.8 Force Maieure. If due to acts of God, governmental restrictions or regulations or controls, judicial orders, enemy or hostile government actions, civil commotion, or other causes beyond the reasonable control of the Parties hereto, a Party shall fail to perform any of the terms of this Lease, such failure and performance shall be excused for a period equal to the duration of that prevention, delay or stoppage, and such prevention, delay or stoppage shall not constitute an event of default under this Lease. Market factors or economic factors shall not under any circumstances be deemed to excuse Landlord's or Tenant's performance of any of the terms of this Lease. 18.9 Further Assurances. The Parties agree to promptly sign all documents reasonably requested to give effect to the provisions of this Lease. 18.10 Prior Agreements; Amendments. This Lease contains all of the agreements of the Parties with respect to any matter covered or mentioned in this Lease, and no prior agreement or understanding pertaining to any such matter 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 or their respective successors in interest. 18.11 Severability. In the event that any term or provision of this Lease or the application of the same to any person or circumstance is, to any extent, invalid or unenforceable, the remainder of this Lease or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby and each term and provision of this Lease shall be valid and be enforced to the fullest extent permitted by law. 18.12 Successors and Assigns. This Lease shall apply to and buid the heirs, personal representatives, and permitted successors and assigns of the Parties. 18.13 Time of the Essence. Time is of the essence of this Lease. 18.14 Waiver. No failure in the exercise of any right or remedy provided for herein shall impair such right or remedy or be construed as a waiver. The receipt and acceptance by Landlord of delinquent rent shall not constitute a waiver of any other default; it shall constitute only a waiver of timely payment for the particular rent payment involved. No act or conduct of Landlord, including, without limitation, the acceptance of keys to the Premises, shall constitute an acceptance of the surrender of the Premises by Tenant before the expiration of the Term. Only a written notice from Landlord to Tenant shall constitute acceptance of the surrender of the Premises and accomplish a termination of the Lease. Landlord's consent to or approval of any act by Tenant requiring Landlord's consent or approval shall not be deemed to waive or render unnecessary Landlord's consent to or approval of any subsequent act by Tenant. Any 12 1:\cnank tvements\Redlands Histodcal Museinn Lease FY24-0088.doex-ms waiver of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provisions of the Lease. 18.15 Notices. All notices required or permitted to be given under this Lease shall be in writing and shall be deemed to have been given and received (a) when personally delivered, or delivered by same -day courier; or (b) on the third business day after mailing by registered or certified mail, postage prepaid, return receipt requested; or (c) upon delivery when sent by prepaid overnight express delivery service (e.g., FedEx, UPS); or (d) when sent by email or facsimile and upon the receipt by the sending party of written confirmation by the receiving party; provided, however, that an automated facsimile or email confirmation of delivery or read receipt shall not constitute such confirmation. 18.15.1 If to Landlord: Email: 18.15.2 If to Tenant: Email: IN WITNESS HEREOF, Parties hereto have executed this Lease as of the date set forth on page 1. Redlands Historical Museum Association By: �. Name: S hen . Stnol on Title: resident 13 I: lcmo\AgreementslRedlands Historical Museum Lease FY24-0088.docx-ms City of Redlands By: �,_Ak_ V_/1 Name: Ni Rib ivc�� Title: Maw ATTEST: C), ek � A QX'. �� nne Donaldson, City Clerk