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HomeMy WebLinkAboutContracts & Agreements_59A-2026MULTI -TENANT OFFICE LEASE — GROSS This Multi -Tenant Office Lease -Gross ("Lease") is made and entered into this 1st day of May 2026 by and between the City of Redlands, a municipal corporation, and a general law city ("City"), and Redlands City Employees Federal Credit Union ("RCEFCU"), a Federal Credit Union ("Lessee"). City and Lessee are sometimes herein referred to individually as a "Party" and collectively as the "Parties." RECITALS WHEREAS, RCEFCU currently occupies office space with the City Hall Facility located at 35 Cajon Street, Suite 14, Redlands, CA 92373 (Cajon Street City Hall). 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, it is the intent of the City to relocate all personnel from the Cajon Street City Hall to the facility located at 300 East State Street (to be known as State Street City Hall Facility, "SSCH") no later than May 2027; and WHEREAS, it is the desire of the City and Lessee to enter into this Lease to allow the Lessee to use and occupy the Premises as hereinafter specified; NOW, THEREFORE, for good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: AGREEMENT Section 1. Premises. That certain portion of SSCH commonly known as 300 E. State Street, Suite M-120 ('Premises'). The Premises are located in the County of San Bernardino, City of Redlands, and consist of approximately four hundred thirteen (413) square feet of office space. In addition to Lessee's rights to use and occupy the Premises as hereinafter specified, Lessee shall have non -exclude rights to the Common Areas (as defined in Section _ below) as hereinafter specified, but shall not have any rights to the roof, the exterior walls, the area above the dropped ceilings, or the utility raceways of the building containing the Premises ("Building") or to any other building in the SSCH Facility. Section 2. Term. Term commences on May 1, 2026 ("Commencement Date") and ends on June 30, 2036 ("Original Term")." Provided Lessee is not in default under the Lease, Lessee shall have the right to renew the Lease for the Premises upon the same terms and conditions of the Original Term for an additional period of nine (9). In order to exercise Lessee's Option herein, Lessee shall provide a minimum of three (3) months written notice prior to the then expiring lease term. I:\Citrus Center- 300 E State Street\Tenant Lease Agreements\Redlands City Employees Federal Credit Union\RCEFCU LEASE Suite M-120.CIty 2025.docx Section 3. Rent. The monthly Base Rent shall be One Dollar ($1.00) per month. As Lessor is required to perform improvements to the Premises, the Rent will commence on the first day of the first full month after Lessee occupies the Premises (anticipated to be between December 2026 and May 2027). 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 5. Use of Premises. 5.1 The Premises shall be used for the exclusive purpose of providing office space for administrative work and for the conduct of the normal daily business of RCEFCU, including customary credit union operations and member services. RCEFCU shall not use or permit the Premises to be used for any other purpose without the prior written consent of City. 5.2 During the term of this Agreement, RCEFCU shall, unless prevented by conditions beyond its control, conduct business on the Premises in a safe and business -like manner. RCEFCU shall assume full responsibility for its personal property used at the Premises, and shall hold City harmless for any theft or damage relating to RCEFCU's personal property. 5.3 RCEFCU shall maintain the Premises in a clean and litter -free manner. 5.4 RCEFCU shall not commit, or permit the commission of, any acts on the Premises, or useor permit the use of the Premises, in any manner that will increase the existing rates for, or cause the cancellation of, any fire, liability, or other insurance policy insuring the Premises or the improvements on the Premises. RCEFCU shall, at its own cost and expense, maintain insurance for all personal property and improvements on the Premises. 5.5 RCEFCU shall not commit, or permit the commission by others, of any waste on the Premises. RCEFCU shall not maintain, commit, or permit the maintenance or commission of any nuisance on the Premises, and RCEFCU shall not use or permit the use of the Premises for any unlawful purpose. Section 6. Compliance with Laws. RCEFCU shall, at RCEFCU's sole cost and expense, comply with all statutes, ordinances, regulations, and requirements of all govermnental entities, federal, state and county or municipal, relating to RCEFCU's use and occupancy of the Premises for RCEFCU's operation of business whether those statutes, ordinances, regulations, and requirements are now in force or are subsequently enacted. The judgment of any court of competent jurisdiction, or the admission by RCEFCU in a proceeding brought against RCEFCU by any government entity that RCEFCU has violated any such statute, ordinance, regulation, or requirement shall be conclusive as between City and RCEFCU and shall constitute grounds for termination of this Agreement byCity. Section 7. Indemnity and Insurance. 7.1 RCEFCU shall defend, indemnify and hold harmless City, and its elected I:\Citrus Center- 300 E State Street\Tenant Lease Agreements\Redlands City Employees Federal Credit Union\RCEFCU LEASE Suite M-120. City 2026.docx officials, officers, employees and agents from and against any and all claims, causes of action, damages and liability resulting from RCEFCU's negligent acts or omissions, and the willful misconduct of RCEFCU, and that of RCEFCU's agents, employees and invitees, during RCEFCU's occupation and use of the Premises during the term of this Agreement. This section shall survive any termination or expiration of this Agreement. A. Comprehensive general liability insurance, with carriers acceptable to City, with minimum coverage of One Million Dollars ($1,000,000) per occurrence, and Two Million Dollars ($2,000,000) aggregate for public liability, property damage and personal injury. City shall be named as an additional insured and such insurance shall be primary and non- contributing to any insurance or self-insurance maintained by City. A certificate of insurance with endorsements evidencing such coverage shall be provided to City prior to RCEFCU's occupancy of the Premises. B. Workers' Compensation and Employer's Liability insurance in the amount that meets statutory requirements with an insurance carrier acceptable to City, or certification to City that RCEFCU is self -insured or exempt from the worker's compensation laws of the State of California. RCEFCU shall provide City with Exhibit "A," titled "Workers' Compensation Insurance Certification," which is attached hereto and incorporated herein by this reference prior to occupancy of the Premises. C. RCEFCU shall defend, indemnify and hold harmless City, and its elected officials, officers, employees, agents, and volunteers, from any and all damages, costs, suits, claims, losses and liability for injury to persons including death, and damage to property, arising out of, or in connection with, any act or omission of RCEFCU or its officers, employees, agents or volunteers, in connection with operation of its business at the Premises. Section 8. Utilities and Taxes 8.1 City shall pay, and hold RCEFCU free and harmless from, all charges for the furnishing of gas, water, sewer, electricity, solid waste disposal and other public utilities provided to the Premises during the term of this Agreement. RCEFCU shall pay, and hold City free and harmless from, all charges for telephone usage by RCEFCU at the Premises. 8.2 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. Upon satisfactory receipt of payment confirmation, City shall reimburse Lessee for possessory interest assessment. Section 9. Attorneys' Fees. In the event any action is commenced to enforce or interpret the terms or conditions of this Agreement, the prevailing Party shall, in addition to any costs and other relief, be entitled to the recovery of its reasonable attorneys' fees, including fees for use of in- house counsel by a Party. Section 10. Notices. Any notice or other communication required, or which maybe given, pursuant to this Agreement, shall be in writing. Any such notice shall be deemed delivered (i) on I:\Citrus Center -300 E State Street\Tenant Lease Agreements\Redlands City Employees Federal Credit Union\RCEFCU LEASE Suite M-120.City 2026.docx 3 the date of delivery in person; (ii) five (5) days after deposit in first class registered mail, with return receipt requested; (iii) on the actual delivery date if deposited with an overnight courier; or (iv) on the date sent by facsimile, if confirmed with a copy sent contemporaneously by first class, certified, registered or express mail; in each case properly posted and fully prepaid to the appropriate address set forth below, or such other address as a party may provide notice in accordance with this section: CITY: City Cleric City of Redlands 35 Cajon Street P.O. Box 3005 (mailing) Redlands, CA 92373 jdonadlson@cityofredlands.org (909)798-7531 RCEFCU Heather Jedinak, Manager Redlands City Employee Federal Credit Union 35 Cajon Street, Suite 14 Redlands, CA 92373 heather@redlandsfcu.org (909)798-7626 Section 11. 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. Section 12. Miscellaneous 12.1 RCEFCU shall not encumber, assign, or otherwise transfer this Agreement, any right or interest in this Agreement, or any right or interest in the Premises or any improvements that may now or hereafter be constructed or installed on the Premises. Any encumbrance, assignment, transfer or subletting by RCEFCU without the prior written consent of City, whether voluntary or involuntary, by operation of law or otherwise, is void and shall, at the option of the City, result in immediate termination of this Agreement. 12.2 This Agreement constitutes the entire agreement between City and RCEFCU respecting RCEFCU's use of the Premises, and correctly sets forth the obligations of City and RCEFCU to each other as of its Effective Date. Any agreements or representations between the Parties respecting the Premises not expressly set forth in this Agreement are null and void. 12.3 This Agreement may be terminated by either Party by giving twelve (12) months prior written notice to the other Party. Signatures on following page I:\Citrus Center 300 E State Street\Tenant Lease Agreements\Redlands City Employees Federal Credit Union\RCEFCU LEASE Suite M-120.City 2026.docx CITY OF EDLANDS Danielle Garcia, Interim Assistant City Manager ATTEST: e nne Donaldson, City Clerk RCEFCU Heather Jedinak, Manager Redlands City Employees Federal Credit Union L\Citrus Center - 300 E State Street\Tenant Lease Agree ments\Redlands City Employees Federal Credit Union\RCEFCU LEASE Suite M-120.City 2026.docx EXHIBIT "A" WORKERS' COMPENSATION INSURANCE CERTIFICATION Every employer, except the State, shall secure the payment of compensation in one or more of the following ways: (a) By being insured against liability to pay compensation by one or more insurers duly authorized to write compensation insurance in this State. (b) By securing from the Director of Industrial Relations, a certificate of consent to self -insure, either as an individual employer, or as one employer in a group of employers, which may be given upon furnishing proof satisfactory to the Director of Industrial Relations of ability to self -insure and to pay any compensation that may become due to his or her employees. CHECK ONE -I am aware of the provisions of Section 3700 of the Labor Code which requires every employer to be insured against liability for Workers' Compensation or to undertake self- insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the work and activities required or permitted under this Agreement. (Labor Code §1861). I affirm that at all times, in performing the work and activities required or permitted under this Agreement, I shall not employ any person in any manner such that I become subject to the workers' compensation laws of California. However, at any time, if I employ any person such that I become subject to the workers' compensation laws of California, immediately I shall provide the City with a certificate of consent to self -insure, or a certification of workers' compensation insurance. I certify under penalty of perjury under the laws of the State of California that the information and representations made in this certificate are true and correct. RCEFCU Date: a 0•J�� By: Heather Jedinak, anager Redlands City Employees Federal Credit Union I:\Citrus Center - 300 E State Street\Tenant Lease Agreements\Redlands City Employees Federal Credit Union\RCEFCU LEASE Suite M-120. City 2026.docx