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HomeMy WebLinkAboutContracts & Agreements_35A-2025FIRST AMENDMENT TO MULTI -TENANT OFFICE LEASE- GROSS This First Amendment ("First Amendment'l to the Multi -Tenant Office Lease -Gross ("Lease"), dated May 24, 2021, is made and entered into this ,24thday of February 2025 by and between the City of Redlands, a municipal corporation, and a general law city ("City"), and Atlas Crown Financial, Inc., a California corporation ("Lessee"). City and Lessee are sometimes herein referred to individually as a "Party" and collectively as the ",Parties. RECITALS WHEREAS, on May 24, 2021, Lessee entered into a Multi -Tenant Office Leaser.Gross with Redlands Community Investment Corporation, a California Corporation for the lease of approximately 866 rentable square feet of space at 300 East State Street, Suite 460, Redlands, California,, 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 all right title and interest in, to and under the leases for 300 East State Street; :and WHEREAS, Lessee wishes to vacate Suite 460 and relocate to Suite 502 containing approximately 1,400 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 the receipt and agfficiency of which are hereby acknowledged, the Parties agree as follows: AGREEMENT Section 1. Paragraph 1,3 of the:Lease, entitled "Term'' is hereby amended to the following: "1.3 Tenn. Term commences on June 1, 2025 ("Commencement,Date") and ends on July. 31, 2027 ("First Extension Term")." If Lessee exercises their option to extend the Lease for an additional three (3) years, the Second Extension Term shall Commence on August 1, 2027, and end on July 31, 2030. The base rent during each Extension Tenn shall increase annually at a rate of three (3%) percent over the prior year's Base Rent. Sectiog 2. Paragraph 1.5 of the Lease, entitled `Base Rent" is hereby amended to read as follows: 1:\Citrus Center -39D.E State Stmet\Tenant Lease Agreements\Atlas Crown Flnandaf\Atlas Cmwn First Amendment to Lease.Clty.2025.dom 1 9.5 Base Rent. The monthly Base Rate during the First Extension Term shall be as follows, Base rate shall be adjusted at the rate of Three Percent (3%) every Twelve (12) months. Months Monthly Base Rent Rate June 1, 2025 —July 31, 2025 $2;604.58 $1.86 per SF August 1, 2025 —July 31, 2026 $2,682.72 $1.92 per SF August 1, 2026 — July 31, 2027 $2,763.20 $1.97 per SF Rent for any partial month shall be prorated based on the number of days of Lessee's occupancy during such month." Section 3. Paragraph 53 of the Lease, entitled "Tenant Improvements" is hereby added as follows: "53. Tenant Improvements. Lessor, at Lessor's expense, shall provide Lessee the Premises based on,a mutually acceptable space plan as per the attached Exhibit "A," which will include a newly constructed conference; room in addition to existing improvements Notwithstanding the foregoing, nothing in this Agreement shall be construed to include with the meaning of Tenant Improvements, any kitchen appliances including but not limited to, a dishwasher or garbage disposal, any office furniture including but not limited to desks, conference tables, chairs, cubicles or file storage, or any additional cabinets in the kitchen/break area. The building standard specification materials shall be used with Building -consistent finish selections! Section 4. No Broker involvement. City and Lessee each represent and warrant to the other that it has not employed any broker in connection with this Amendment. Section S. Lrggegration 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 terns 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 6. 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 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. 1ACitrus Center- 300 E State Street\Tenant Lease Agneements\Atias Crown FinancioNAtfas Crown First Amendment to Lease.CiLy.2025.dam 2 Section 7. 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 and in full force and effect. - IN WITNESS WHEREOF, the parties have executed this First Amendment, to be effective as of the date first written above. CITY OF REDLANDS ATLAS CROWN FINANCIAL, INC. By: Chris Boatman, Assistant City Manager Daniel Isham, Chief Executive Officer ATTEST: Je&A Donaldson, City Clerk 4 1 i `s 1.%Citrus Center- 300 F State Street\Tenant Lease Agreements44tlas Grown FinanciaMtlas Crown First Amendment to Lease.City.2025.docx 3 EXHIBIT"A" LESSOR'S WORT{ LETTER 1, Completion of Lessee Improvements. A. As used herein, "Lessor's Work" shall mean (i) the Substantial Completion, as hereinafter defined, of the work called for by the plans approved by both Lessor and Lessee as of the date of the execution of this First Amendment to the Lease (collectively, the "Plan') and attached as Schedule I and in conformity with the Landlord's building standards. Lessor and Lease agree that Lessor is obligated to pay for the cost of Lessor's Work (inclusive of the cost of design, engineering, architectural, construction management, preliminary spaoe;plan, and all revisions thereto, and costs of obtaining permits) to the extent it conforms to the Plan and Landlord's building standard. 2. No.Other Work. This Lessor's Work Letter shall not be deemed applicable to any additional space added to the Premises at any time or from tithe to time, whether by any options or rights under the Lease or otherwise, or to any portion of the original Premises or any additions to the Premises in the event of a renewal or extension of the Term, whether by any options under the Lease or otherwise, unless expressly so provided in Lease or any amendment or supplement to the Lease. 1ACitrus Center- 300 E State Street\Tenant Lease Agreements\Atlas crown FlnandaMtlas Crown First Amendment to Lease.City.2025.dorar 4 SCHEDULEI Construction of a Conference Room in approximate location depicted in Rendering 1. Rending 1 �. �� -h6. IACitrus Center - 300 E State Street\Tenant Lease A@reements\Atlas Croon Financial\Attar Crown First Amendment to Lease.City.2025.docx 5 _ t