HomeMy WebLinkAboutReso 124-2025 (25-918)
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July 12, 2021
Stacey S. Dobos, as Trustee of
the Stacey S. Dobos Trust Agreement dated November 26, 2003
City of South San Francisco
366 Grand Ave
South San Francisco CA 94080
San Mateo
an approximately 6,903 rentable
square foot building and attached parking lot, situated on Grand Avenue
Three (3) One (1)October 1, 2021
October 31, 2024
13,115.70 first
November 1, 2021
X 51
13,115.70 November 1, 2021 to November 30, 2021
12,000.00
NA
NA
25,115.70
The Premises shall be used for small business and entrepreneurship center or
related uses authorized by the City of South San Francisco and approved by Lessor
4,581.00
SC Properties
01383173 X
Bob Guglielmi
0064075 X
NA
NA
SC Properties, 311 South Ellsworth Avenue San Mateo CA 94401
(650)342-3030 (650)375-7781 Lindsey Baggetta 366 Grand- City of
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Stacey S. Dobos, as Trustee of
the Stacey S. Dobos Trust Agreement Dated 11/26/03
Stacey Dobos
Trustee
City of South San Francisco
366 Grand- City of
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SC Properties
Bob Guglielmi
311 S Ellsworth Ave
San Mateo, CA 94401
(650)398-0280
[email protected]
00642075
NA
NA
366 Grand- City of
ADDENDUM TO LEASE:
by and between Stacey S. Dobos, as Trustee of the Stacey S. Dobos Trust Agreement Dated
November 26, 2003 (hereafter referred to as “Lessor”) and the CITY OF SOUTH SAN FRANCISCO, a
California municipal corporation (hereafter referred to as “Lessee”).
This Addendum to Lease (“Addendum”) is incorporated into and made a part of that certain foregoing Standard
Industrial/Commercial Single-Tenant Lease – Gross (the “Lease”) for the premises commonly known as 366
Grand Ave, South San Francisco, CA 94080 (the “Premises”). In the event of any conflict between the terms of
the Lease and the terms of this Addendum, the terms of this Addendum shall prevail.
51. PAYMENT SCHEDULE: Commencing October 1, 2021 Base Rent shall be as follows:
October 1, 2021 to October 31, 2021: $13,115.70 (Abated)
November 1, 2021 to September 30, 2022: $13,115.70 per month
October 1, 2022 to September 30, 2023: $13,529.88 per month
October 1, 2023 to September 30, 2024: $13,944.06 per month
October 1, 2024 – October 31, 2024 $14,362.38 per month
Notwithstanding anything to the contrary in Paragraph 26 of the Lease, in the event that Lessee holds over
beyond the expiration or termination of the Lease, Base Rent shall not be increased by 150% and shall remain
$14,362.38 per month, and the tenancy shall continue on the same terms of the Lease, except that either Party
may terminate the tenancy by serving a written ninety (90) day notice to the other party. Nothing contained
herein shall be construed as consent by Lessor to any holding over by Lessee. Furthermore, if Lessee fails to
surrender the Premises to Lessor upon the expiration or termination of the Lease, Lessee shall hold Lessor
harmless from all damages resulting from Lessee’s failure to surrender the Premises, including but not limit ed
to claims made by succeeding tenant(s).
52. CONDITION OF THE PREMISES, LESSEE’S DUE DILIGENCE PERIOD, AND LESSEE’S
TERMINATION RIGHT.
(A) Notwithstanding anything to the contrary in the Lease, including but not limited to Paragraphs 2.2 and 2.3,
except for the Tenant Improvements identified below, Lessor shall deliver the Premises to Lessee, and Lessee
understands that it takes possession of the Premises, in its as-is-, where-is condition without representation or
warranty of any kind by Lessor. By entry hereunder, Lessee shall be deemed to have accepted the Premises as
being in good, sanitary order, condition, and repair. Notwithstanding the foregoing, Lessor shall ensure that, no
later than six (6) months after the Commencement Date, the parking at the Premises, the entrances to the
Premises, and the exterior signage at the Premises is compliant with the current requirements of the Americans
with Disabilities Act (42 U.S.C. chapter 126) (“ADA”). Lessor shall have no obligation to ensure that any
other portion of the Premises, including but not limited to the bathrooms at the Premises, are ADA-compliant;
should any alterations be necessary to any other portion of the Premises, including but not limited to the
bathrooms, to ensure ADA-compliance, Lessee shall undertake all necessary alterations at its sole cost and
expense.
(B) Lessee shall have thirty (30) business days from mutual execution of the Lease (the “Due Diligence Period”)
to satisfy itself as to the physical condition of the Premises. During the Due Diligence Period, Lessee and its
designated agents, contractors, engineers, architects, and consultants (collectively “Lessee’s Agents”) shall have
the right, at Lessee’s sole risk and liability, to enter onto and investigate the physical condition of the Premises.
All aspects of Lessee’s due diligence inspection and review of the Premises shall be performed at Lessee’s sole
expense, risk, and liability. To the extent permitted by law, information obtained by Lessee shall remain
confidential and shall not be furnished or disclosed to any third party (other than Buyer’s Agents) except that
any physical conditions discovered by Lessee shall be disclosed to Lessor.
(C) Lessee shall indemnify, defend, and hold Lessor harmless for, from, and against any and all claims, damages,
costs, liabilities, and losses that Lessor suffers arising out of any entry to the Premises or conduct taken by Lessee
or Lessee’s Agents during the Due Diligence Period. This indemnity provision shall survive the expiration or
termination of the Lease.
(D) If Lessee disapproves of any aspect of the physical condition of the Premises during the Due Diligence
Period, Lessee shall have the right to terminate the Lease by written notice to Lessor during the Due Diligence
Period. Such termination right is contingent upon Lessee repairing any damage to the Premises caused by Lessee
or Lessee’s Agents during the Due Diligence Period and restoring the Premises to the condition existing prior to
any testing or inspection by Lessee or Lessee’s Agents, all at Lessee’s sole cost and expense. If Lessee does not
notify Lessor in writing prior to the expiration of the Due Diligence Period of its disapproval of the physical
condition of the Premises and election to terminate the Lease, Lessee shall be deemed to have approved of the
physical condition of the Premises and shall have no further right to terminate the Lease.
53. EARLY POSSESSION: So long as Lessee does not interfere with Tenant Improvement work described
below, Lessee may enter Premises upon expiration of the Due Diligence Period for the sole purpose of installing
furniture, fixtures and equipment. Such early possession shall be at no cost to Lessee.
54. TENANT IMPROVEMENTS: Lessor, at Lessor’s sole cost and expense, shell deliver the Premises with all
building systems in good working order and shall complete the following Tenant Improvements (the “Tenant
Improvements”) prior to the Commencement Date:
x Furnish the Premises with a brand new, heating ventilation and air conditioning system (HVAC) in
amounts necessary for the use and occupancy of the Premises for normal office purposes.
Notwithstanding anything to the contrary herein, the Parties acknowledge that Lessor will not be able
to complete installation of a new HVAC prior to the Commencement Date. Lessor shall make all
reasonable efforts to complete installation of the HVAC by December 1, 2021 but shall not be subject
to any liability whatsoever if the installation of the HVAC is not completed prior to the Commencement
Date or December 1, 2021 and Lessee shall not be entitled to any offsets, abatement or reduction of Rent
if such installation is not completed by the Commencement Date or by December 1, 2021, nor shall
Lessee be entitled to any allowance for a dimunition of rental value or interruption of business if
installation of the HVAC occurs after the Commencement Date or December 1, 2021.
x Replace all existing carpet with new carpet throughout the Premises based on a mutually agreeable plan
with Lessee.
x Clean and paint all interior walls based on a mutually agreeable plan with Lessee.
In addition, Lessor shall provide Lessee a Tenant Improvement Allowance of up to ten thousand dollars
($10,000.00) to be applied towards the soft and hard costs of alterations to the Premises completed by Lessee
prior to the Commencement Date (the “Tenant Improvement Allowance”). The Tenant Improvement Allowance
shall be equal to the soft and hard costs of alterations to the Premises completed by Lessee prior to the
Commencement Date (though not to exceed $10,000) and provided to Lessee as a credit against a portion of one
(1) month’s Base Rent, to be applied following both (1) completion of such alterations by Lessee and (2) Lessor’s
receipt of receipts and paid bills covering the labor and materials for such alterations.
55. BONUS RENT: Any rent or other consideration paid to Lessee under any sublease or assignment in excess of
the Rent payable by Lessee to Lessor shall be split 50/50 between Lessor and Lessee. Such “bonus rent” shall
constitute Rent due from Lessee and shall be due and payable immediately upon receipt by Lessee.
56. ASSIGNMENT AND SUBLETTING: Lessor’s consent to any assignment or subletting shall not be
unreasonably withheld. Without limiting the other instances in which it may be reasonable for Lessor to
withhold Lessor’s consent to an assignment or subletting, Lessor and Lessee acknowledge that it shall be
reasonable for Lessor to withhold Lessor’s consent in the following instances: if the proposed assignee or
subtenant does not agree to be bound by and assume the obligations of Lessee under this Lease in form and
substance satisfactory to Lessor; the use of the Premises by such proposed assignee or subtenant is different than
the Agreed Use hereunder or would violate any laws; the proposed assignee or subtenant is not of sound financial
condition as determined by Lessor in Lessor’s sole and absolute discretion; the proposed assignee or subtenant
is a governmental agency; the proposed assignee or subtenant does not have a good reputation as a tenant of
property or a good business reputation; the assignment or subletting would entail any alterations which would
lessen the value of the leasehold improvements in the Premises or use of any Hazardous Substances or other
noxious use or use which may disturb other tenants; or Lessee is in default of any obligation of Lessee under the
Lease, or Lessee has defaulted under this Lease on three (3) or more separate occasions during any twelve (12)
months preceding the date that Lessee shall request consent. Failure by or refusal of Lessor to consent to a
proposed assignee or subtenant shall not cause a termination of the Lease.
57. FORCE MAJEURE:
(a) Definition. An event of “Force Majeure” is an event or circumstance which is beyond the control and
without the fault or negligence of the party affected and which by the exercise of reasonable diligence the
party affected was unable to prevent or foresee provided that event or circumstance is not preexisting as of the
execution of this Lease, and is limited to the following:
(a) riot, war, invasion, act of foreign enemies, hostilities (whether war be declared or not) acts of
terrorism, civil war, rebellion, revolution, insurrection of military or usurped power, requisition or
compulsory acquisition by any governmental or competent authority;
(b) ionizing radiation or contamination, radioactivity from any nuclear fuel or from any nuclear waste
from the combustion of nuclear fuel, radioactive toxic explosive, or other hazardous properties of any
explosive assembly or nuclear component;
(c) pressure waves caused by aircraft or other aerial devices traveling at sonic or supersonic speeds;
(d) earthquakes, flood, or fire or other physical natural disaster, but excluding weather conditions
regardless of severity;
(e) events of mass contagion that are classified as a pandemic by the World Heath Organization; and
(f) strikes at state or national level or industrial disputes at a state or national level, or strike or
industrial disputes by labor not employed by the affected party, its subcontractors, or its suppliers, and
which affect an essential portion of the obligation to be performed by the affected party but excluding
any industrial dispute which is specific to Tenant’s business or employees.
(b) Occurrence. Neither party is responsible for any failure to perform its obligations under this Lease, if it is
prevented or delayed in performing those obligations by an event of Force Majeure. Where there is an event of
Force Majeure, the party prevented from or delayed in performing its obligations under this Lease shall
immediately notify the other party giving full particulars of the event of Force Majeure and the reasons for the
event of Force Majeure preventing that party from, or delaying that party in performing its obligations under
this Lease and that party must use its reasonable efforts to mitigate the effect of the event of Force Majeure
upon its or their performance of the Lease and to fulfill its or their obligations under the Lease. Upon
completion of the event of Force Majeure the party affected must as soon as reasonably practicable
recommence the performance of its obligations under this Lease. An event of Force Majeure does not relieve a
party from liability for an obligation which arose before the occurrence of that event, nor does that event affect
the obligation to pay money in a timely manner which matured prior to the occurrence of that event.
Notwithstanding any of the foregoing, a Force Majeure event shall not excuse Lessee’s obligation to timely
pay Rent as and when required under this Lease. The Parties hereby waive the provisions of Civil Code
Section 1511 to the extent they are inconsistent with this Article 57.
58. INSURANCE: Lessee shall name both Lessor and SC Property Management Inc. as additional insured on the
Commercial General Liability insurance policy required to be obtained and kept in force by Lessee, as follows:
LESSOR:
Stacey S. Dobos, as Trustee of the Stacey S. Dobos Trust Agreement Dated November 26, 2003
c/o SC Property Management Inc.
311 S Ellsworth Ave
San Mateo, CA 94401
Management Company:
SC Property Management Inc.
311 S Ellsworth Ave
San Mateo, CA 94401
59. PARKING: Lessee shall have the right to utilize the entire parking lot on the Premises. Lessee is responsible,
at its sole cost and expense, for restricting access to the lot to Lessee and its invitees and installing any additional
gates, chains etc to restrict access. Lessee is also responsible, at its sole cost and expense, to maintain and repair
the parking lot, to install reserved parking signage in the lot, and to monitor access and towing cars.
60. JANITORIAL SERVICE: So long as Lessee is in not default of its Lease obligations, Lessor will credit
Lessee $500 per month against Base Rent for janitorial services. Lessee shall be responsible for contracting with
and overseeing their own janitorial service for the Premises.
61. SIGNS. Upon Lessor’s prior written consent, Lessee may install signage at the Premises, at its sole cost and
expense and in compliance with all Applicable Requirements. Lessee shall, at the expiration or earlier
termination of the Lease, remove its signage and repair any damage to the Premises caused by installation or
removal of signage at its sole cost and expense.
62. SECURITY DEPOSIT. The Security Deposit may, at the option of Lessor, be used for the payment of future
unpaid Rent, and the Parties waive the provisions of California Civil Code Section 1950.7 (or any similar statute
or regulation) which limits the sums to which the Security Deposit may be applied.
63. HVAC, WALLS, ROOF, EXTERIOR PAINT. Notwithstanding anything to the contrary in Section 7.1 of the
Lease, Lessor shall maintain the HVAC equipment and the exterior paint at the Premises in good order,
condition, and repair. Should Lessor procure a maintenance contract with a contractor for maintenance or repair
of the HVAC equipment, the building walls, the roof or for exterior paint, Lessee shall allow access to the
Premises by, and cooperate with, such contractor for any necessary inspection or maintenance.
64. BROKER. Lessee has not retained a broker, has not consulted with a Lessee-retainer broker, nor intends to pay
any broker fees.
By Lessor:
Stacey S. Dobos, as Trustee of the Stacey S. Dobos Trust Agreement Dated November 26, 2003
Name________________________________
Signature_____________________________
Date_________________________________
By Lessee:
City of South San Francisco, a California municipal corporation
Name_____________________________
Signature __________________________
Date______________________________
"
!
366 Grand Ave- Plot Plan
Exhibit B
1
THIRD AMENDMENT TO THE LEASE AGREEMENT BETWEEN THE CITY OF
SOUTH SAN FRANCISCO AND STACEY S. DOBOS TRUST FOR USE OF 366
GRAND AVENUE IN SOUTH SAN FRANCISCO
THIS THIRD AMENDMENT TO THE LEASE AGREEMENT is made at South San Francisco,
California, as of August 27, 2025 by and between THE CITY OF SOUTH SAN FRANCISCO
(“City”), a municipal corporation, and the Stacey S. Dobos Trust (“Property Owner”) (sometimes
referred together as the “Parties”) who agree as follows:
RECITALS
A. On July 12, 2021, City and Property Owner entered that certain Lease Agreement
(“Lease”) whereby Property Owner agreed to lease the commercial property at 366 Grand
Avenue to the City of South San Francisco for purposes of opening the Economic Advancement
Center. A true and correct copy of the Agreement is attached hereto and incorporated herein as
Exhibit A.
B. On July 24, 2024, City and Property Owner entered that certain First Amendment
to Lease Agreement (“First Amendment”) which in part, modified the term of the lease to
November 1, 2024 to April 30, 2025. A true and correct copy of the First Amendment is attached
hereto and incorporated herein as Exhibit B.
C. On January 8, 2025, City and Property Owner entered that certain Second
Amendment to Lease Agreement (“Second Amendment”) which in part, modified the term of
the lease to May 1, 2025, to August 31, 2025. A true and correct copy of the Second Amendment
is attached hereto and incorporated herein as Exhibit B.
D. City and Property Owner now desire to amend the Lease.
NOW, THEREFORE, for and in consideration of the promises and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, City and Property
Owner hereby agree as follows:
1. All terms which are defined in the Second Amendment shall have the same meaning when
used in the Third Amendment, unless specifically provided herein to the contrary.
2. Section 1.3: Term. The term of the Agreement shall be extended to expire on
August 31, 2027.
3. Section 51 of Addendum to Lease: PAYMENT SCHEDULE. The Base Rent shall
be abated for one month, from September 1, 2025 to September 30, 2025.
4. Section 54 of Addendum to Lease: TENANT IMPROVEMENTS. Under the
extended Term under this Third Amendment, Lessor is providing an additional
Tenant Improvement Allowance of up to ten thousand dollars ($10,000.00) to be
2
applied towards the soft and hard costs of alterations to the Premises completed by
Lessee during the Term of the Agreement, which shall be equal to the soft and hard
costs of alterations to the Premises completed by Lessee and provided to Lessee as
against a portion of one (1) month’s Base Rent, to be applied in the same manner
as set forth in the Agreement.
All other terms, conditions and provisions in the Lease remain in full force and effect. If there is a
conflict between the terms of this Amendment and the Lease, the terms of the Lease will control
unless specifically modified by this Second Amendment.
[SIGNATURES ON THE FOLLOWING PAGE]
3
Dated:
CITY OF SOUTH SAN FRANCISCO PROPERTY OWNER
By: By:
City Manager
ATTEST:
By: ___________________________
City Clerk
Approved as to Form:
By:
City Attorney