HomeMy WebLinkAboutReso 8-1983 RESOLUTION NO. 8-83
CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA
A RESOLUTION AUTHORIZING EXECUTION
OF A THREE YEAR LEASE AGREEMENT FOR
230-232 GRAND AVENUE
that'
BE IT RESOLVED by the City Council of the City of South San Francisco
1. Execution.
Execution of a three year Lease Agreement between the City of South
San Francisco and Frank Giffra Enterprises entitled "Lease" is hereby author-
ized, and a copy of said Lease Agreement is attached hereto as Exhibit "A."
2. Signature.
The City Manager is authorized to execute said Lease Agreement on
behalf of the City, and the City Clerk attest his signature thereto.
I hereby certify that the foregoing Resolution was regularly introduced
and adopted by the City Council of the City of South San Francisco at a regular
meeting held on the 5th day of January , 19 83 , by the following vote'
AYES' Councilmembers Ronald G. Acosta, Mark N. Addiego, Emanuele N. Damonte,
Gus Nicolopulos; and Roberta Cerri Teglia
NOES' None
ABSENT' None
ATTEST'
City Clerk
LEASE
THIS LEASE AGREEMENT made and entered into this 5th day of January,
1983 by and between the Frank Giffra Enterprises, LESSORS, and the City of
South San Francisco, a California municipality, LESSEES, City Hall, Grand
Avenue, South San Francisco, California 94080.
WITNESSETH:
That LESSORS hereby lease to LESSEES, and LESSEES hereby rent from
LESSORS,
1) That certain real property commonly known and designated as 230
Grand Avenue, in the City of South San Francisco being limited to the store
building thereon, approximately twenty seven feet (27') in width and one hundred
ten feet (110') in length, excluding the garage situated at the rear of said
-- property and opening onto Fourth Lane; and
2) That certain real property adjacent to the premises at 230 Grand
Avenue and designated as 232 Grand Avenue, being limited to the store premises
thereon, approximately twenty seven feet (27') in width and one hundred feet
(100') in length, including parking area in the rear and opening onto Fourth
Lane, except that a ten foot (10') wide rear passageway shall be reserved for
the Edwin Hotel and West Hotel rear entrances; that said property is hereby
leased for the purpose of conducting therein an adult recreation center, known
as "THE SOUTH SAN FRANCISCO SENIOR CITIZENS CLUB" and other municipal purposes,
but for no other purpose whatsoever without the written consent of the LESSORS
first having been had and obtained.
TO HAVE AND TO HOLD said premises unto LESSEES for a continuous term of
__ three (3) years, commencing on the 5th day of January, 1983 and concluding on
the 31st day of December, 1984, yielding and paying to LESSORS In rental as and
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fo.r a monthly rent of ONE THOUSAND DOLLARS ($1,000.00) for a period of two {2)
years from the signing of this lease, and after the two (2) year period, an
additional monthly rental adjustment may be assessed to the existing rental
amount based upon the Consumer Price Index for Urban Wage Earners and Clerical
Workers (CPI-W) San Francisco-Oakland (1967=100).
1. The monthly rental for the period January 1, 1983 to December 31,
1984 shall be at the rate of ONE THOUSAND DOLLARS ($1,000.00) per month.
2. The-first and last month's rent in the amount of TWO THOUSAND
DOLLARS ($2,000.00) shall be paid by the LESSEES on the execution of this lease.
3. All of said rent shall be paid at the office of the LESSORS located
at 240 Grand Avenue, South San Francisco, CA. 94080 on the 1st day of each and
every month in advance.
4. For the third year of this three (3) year lease, the monthly rental
of ONE THOUSAND DOLLARS ($1,000.00) per month, shall be adjusted pursuant to the
Consumer Price Index for Urban'Wage Earners and Clerical Workers (CPI-W), for
the San Francisco-Oakland area, all items (1967:100) published by the U.S.
Department of Labor, Bureau of Labor Statistics, as peridocially released by the
San Francisco office.
The specific determination shall use as the base the CPI-W San
Francisco-Oakland (1967=100) all items as is certified by the Bureau of Labor
Statistics for December, 1983 as the base index. The percent increase shall
then be determined by the perCentage movement from December, 1983 to December,
1984, The rent increase shall increase the monthly rent by the same percentage
(to tenths of a percent) increase to a maximum of 8%.
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If the LESSEES exercise the option of renewing this Lease Agreement
pursuant to Section 27 herein, the same procedure using the immediately prior
December index and the December index one year prior to that, as the base, shall
be used annually to determine an increase to take effect accordingly.
IT IS MUTUALLY AGREED BETWEEN THE PARTIES HERETO AS FOLLOWS:
The terms "LESSORS" and "LESSEES' respectively, as employed in this
Lease Agreement are employed without distinction as to number or gender, and
shall include, whenever the context shall permit, all agents, representatives,
employees, servants, contractors, and business or social invitees.
.1. At all times during the continuance of this Lease Agreement,
LESSEES shall, at their own expense, keep in good condition the demised premi-
ses, including all improvements now located thereon or which may hereafter be
added. Further, LESSEES shall, also at their own expense, make all necessary
repairs to said premises, usual wear, tear, and damage by the elements excepted.
2. LESSORS have installed a 16 x 8 foot reinforced archway passage
with rolling fire doors between the two store premises at the sole expense of
the LESSORS. The passageway was installed in such a manner to meet local engi-
.
neering requirements and fire ordinances as necessary.
3. LESSEES agree to examine the premises hereby demised prior to the
commencement of the use and occupancy of the premises by LESSEES, their repre-
sentatives, agents, or employees, shall conclusively constitute an admission and
agreement on their part that the same are, at such time in good condition and
repair.
4. LESSORS shall not be obligated in any way to make any changes,
repairs or improvements to the demised premises during the continuance of this
Lease Agreement or during any renewal term or extension hereof. LESSEES hereby
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expressly waive the right to make any repairs on said premises at the expense of
LESSORS under the provisions of Section 1941 and 1942 of the Civil Code of the
State of California, or under any application provision of law or otherwise.
5. LESSEES shall pay and bear the cost of all utilities, including,
but not limited to, fuel, water, gas, heat, light, power, electricity and
telephone utilities, furnished or supplied to the Leased premises during the
Basic Term and any Extended Term of this Lease. LESSEES shall provide for, and '
shall pay and bear all of the costs of, janitorial, disposal and all other ser-
vices in and upon the Leased premises.
6. In the event that LESSEES shall do any act or thing on or about
said premises, or any part thereof, or cause the same to be done, or cause any
labor to be performed on or about said premises, by virtue of which there shall
be a claim or lien established against said land and premises by any laborer,
workman, mechanic, or materialman, this Lease shall be and become immediately
void at the election of LESSORS, and'LESSEES shall at once vacate said premises
on demand of LESSORS, unless LESSEE within 30 days satisfied said claim or lien
or posts a security satisfactory to LESSORS.
7. LESSORS shall not be liable for any loss or damage to the property
on said premises from any cause or source whatsoever, including leakage of
water, defective plumbing, defective electrical wiring, defective sewers, et
cetera unless such loss or damage is caused by the acts or omissions of LESSORS,
LESSORS' agents, employees, or guests. In addition, LESSORS shall not be liable
for any damage or injury to persons or property occurring or arising upon said
premises, or upon the sidewalk area surrounding said premises, irrespective of
what may be the cause of such damage or injury unless such damage or injury is
caused by the acts or omissions of the LESSORS, LESSORS' agents, employees or
guests. In this connection, LESSEES agree to defend LESSORS against all
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expenses, liability, and claims for damage to property, or injury to or death
· .__ of, persons, from any cause whatsoever arising out of or during LESSEES' obliga-
tions or permitted acts hereunder and LESSEE shall provide an adequate insurance
policy therefor. It is understood that LESSEES shall be and remain liable under
the terms of this paragraph whether the premises are subleased to or contracted
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for operation by, any third party.
8. LESSEES shall not assign this Lease, or any interest therein, and
shall not sublet said premises, or any part thereof, or any right or privilege
appurtenant thereto, or suffer any other person {the agents and servants of
LESSEES excepted) to occupy or use said premises, or any portion thereof,
without the written consent of LESSORS first had and obtained, and a consent to
one assignment, subletting, occupation or use by any other person shall not be
deemed to be a consent to any subsequent asSignment, subletting, occupation, or
.use by another person. Any such assignment without such consent shall be void,
and, in the event thereof, LESSORS may, at their option, terminate this Lease.
This Lease shall not, or shall any interest therein, be assignable, as to the
interest of LESSEES, by operation of law, without the written consent of
LESSORS.
9. In the event LESSEES, their successors, or assigns, shall be
adjudged to be bankrupt, or become insolvent, or in the event LESSEES, their
successors, or assigns, may make an assignment for the benefit of creditors,
this Lease, at the option of LESSORS, shall immediately end and terminate, and
shall nowise be treated as an asset of LESSEES after the exercise of the afore-
said option, and LESSORS shall have the right forthwith to re-enter said premi-
ses as of their former and original state.
10. LESSEES shall permit LESSORS and their agents to enter into and
upon said premises at all reasonable times for the purpose of inspection of same
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or for the purpose of maintaining the building in which said premises are'
situated, or for the purpose of making repairs, alterations or additions to any
other portion of said building, including the erection and maintenance of such
scaffolding canopies, fences, and props as may be required for such purposes or
for' the purpose of posting notices of non-liability for alterations, additions,
or repairs or for the purpose of placing upon the property in which said premi-
ses are located any usual or ordinary "FOR LEASE" signs.
11. In the event of the destruction of said premises by fire, except
that caused by the negligence or carelessness of LESSEES, their agents,
employees, contractors, or invitees, earthquake, or Act of God, or any substan-
tial part thereof, so as to make them unfit for the purpose for which they are
hereby leased, this Lease shall terminate and all rights and obligations
hereunder shall cease, provided, however, that LESSORS shall have the right and
option to maintain this Lease in full force and effect, upon giving written
notice to LESSEES of their intention so to do within thirty (30} days after such
destruction. In the event of such election by LESSORS, they shall proceed with
the restoration and reconstruction of the premises with all reasonable dili-
gence, and during such restoration and reconstruction, the rent herein reserved,
or a prorata thereof, according to the damage done, shall be suspended. In the
event of the inability of the parties hereto to agree as to the extent of the
reduction of said rent of said premises, on the partial destruction thereof, the
matter shall be submitted to arbitration, said arbitrators to be selected in the
usual manner,~that is to say: One by the LESSORS and One by the LESSEES. In
the event said arbitrators are unable to determine the amount of said redUction
of rent, they shall select a third disinterested person to act with them, and
the decision of a majority of said arbitrators so selected shall be binding upon
'-- LESSORS and LESSEES. The arbitrators shall render this report in writing within
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fifteen (15) days after the matter in controversy shall have been submitted to
them, and each party hereto shall be furnished with a true and correct copy of
such written report. Each party hereto shall be responsible for payment of the
fees and expenses of the arbitrator being borne equally by said parties. Each
party's share of Such fees and expenses shall become immediately due and payable
upon the completion of the arbitration.
In the event that the premises, or any substantial part thereof,
shall be destroyed through the negligence or carelessness of the LESSEES, their
representatives, agents, employees, contractors, or invitee$, then there shall
be no abatement or reduction in rent; provided, however, that under such cir-
'cumstances LESSORS shall have the option to cancel this Agreement.
12. If LESSEES shall fail or neglect to perform any of the covenants,
conditions, or agreements herein contained to be kept or performed by them,
LESSORS or their personal representatives may, at any time thereafter, without
--- notice or demand, lawfully declare said term ended and re-enter said demised
premises, or any part thereof, either with or without process of law, and expel,
remove and put out LESSEES or any person or persons occupying said premises and
may remove all persons' property therefrom, using such force as may be necessary
to again repossess and enjoy said premises as before this demise, without preju-
dice to any remedies which might otherwise be used for arrears of rent or pre-
ceding breach of the covenants, and without liability to any person for damages
sustained by reason of such removal.
13. This Lease shall not be surrendered, whether by delivery of keys or
in any other manner whatsoever, nor shall said premises be abandoned so as to
effect a cancellation or rescission of this Lease, except with the previous
written consent of LESSORS. Upon any attempted abandonment of said premises or
--- surrender of said Lease by the tenants, LESSORS shall have the right to enter
into possession of said premises without prejudice to this Lease or any rights
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against LESSEES. In the event of LESSORS re-entry of the premises by reason of
the failure of LESSEES to pay the rent or by reason of any violation of any
covenant or condition of this Lease, or any attempted abandonment or surrender
thereof, or by reason of anything whatsoever, LESSORS shall have the right to
sublet said premises, or a part thereof, for the balance of the term or a term
in excess thereof, either for LESSORS or for LESSEES as LESSEES' agent and to
hold LESSEES responsible for the difference between the rent reserved and the
rent obtained from said premises upon reletting same.
14. No' waiver by LESSORS of anything, covenant, or condition herein
contained shall be construed as a waiver of future performance thereof. The
.subsequent acceptance of rent hereunder shall not be deemed as a waiver of any
preceding breach of any covenant or condition by LESSEES.
15. LESSEES shall, at their own cost and expense, at all times comply
with any and all Federal and State Laws and Statutes, and any and all ordinan-
ces, rules, regulations, and laws of the City of South San Francisco, or any of
its boards, officers, servants', or employees, now or hereafter to be enacted,
passed, or adopted with reference to maintenance, use, or occupation of said
premises, or, in the conduct of any business therein carried on.
16. In the event any suit is brought by either LESSORS or LESSEES
under this Lease, the prevailing party therein shall be entitled to the fees of
its attorneys in such suit, Which fees shall.become due and payable at the time
of filing suit, and the amount so allowed for fees shall be taxed as part of the
cost of such suit.
17. LESSEES shall not make any alterations to or upon said premises
except as contemplated for the adult recreation center, without the consent of
the LESSORS first having been obtained which shall not be unreasonably withheld.
The cost of such alterations rebuilding or improvements shall be paid by LESSEES
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to LESSORS. Whenever LESSORS undertake improvements at the request of LESSEES,
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the estimated cost thereof shall be paid before any of the work is commenced,
and if by reason of any strike, lockout, or other labor controversy, by reason
of the inability of LESSORS to obtain materials or necessary labor, by reason of
anY accident or casualty whatsoever, or by reason of causes beyond the control
of LESSORS, the work requested cannot be contemplated within the time originally
specified or at the cost originally estimated, LESSORS shall not be held respon-,
sible for any delay and shall be paid by the LESSEES for any additional cost
resulting.
18. LESSEES agree to install necessary lighting on said premises,
paint entire interior and carpet floors of store premises. LESSEES also agree
to install an acoustic ceiling covering the entire premises to reduce noise
level. Other remodeling and new improvements to the premises shall be made by
LESSEES only with the written consent of LESSORS first having been obtained,
which shall not be unreasonably withheld. All of these new improvements will be
accomplished at LESSEES expense.
19. At the end of the lease term or when the tenancy or right of occu-
pancy of LESSEES in the demised premises is otherwise terminated, said premises
shall be delivered without delay to LESSORS in good repair as LESSEES obtained
the same at the commencement of the Lease term, excepting any damage caused by
the direct act or wilfull neglect of LESSORS or by his carelessness or negli-
gence and damage caused by reasonable wear, natural, decay, the elements Act of
God, insurrection, riot, invasion, or by military or usurped power; and all
structures of every kind and fixtures attached to said premises by LESSEES
during the continuance of this Lease except trade fixtures, shall be the pro-
perty of LESSORS provided, however, that, in the absence of an agreement to the
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contrary, LESSORS shall have the option, upon the expiration or sooner ter-
mination of this Lease Agreement, to require LESSEES to remove any such struc-
tures or fixtures, and to restore the premises to their original conditon all at
LESSEES' own expense, and should LESSEES fail to so remove any such structures
or fixtures and to restore said premises. LESSORS may do the same at LESSEES'
expense.
20. Any holding over after the expiration of the term hereof, with the'
consent of LESSORS, shall be subject to the terms and provisions of this lease
and shall be construed to be a tenancy from month to month, at a rental of ONE
THOUSAND..DOLLARS ($1,000.00) a month, with the addition of any adjustments in
monthly rent pursuant to CP index (CPI-W) for San Francisco-Oakland.
21. The covenants and conditions herein contained shall, subject to
the provisions with respect to assignment, apply to and bind the heirs, suc-
cessors, executors, administrators, and assigns of all the parties hereto; and
all the parties hereto shall be jointly and severally liable hereunder.
22. LESSEES shall not use the premises in Whole or in part for any
immoral purpose, or in violation of any Federal, State, or Municipal Law or
ordinance, now in force, or which may hereafter be enacted.
23. At all times during the Basic Term and any Extended Term of this
Lease, LESSEES at their sole cost and expense, shall provide and keep in force
comprehensive liability insurance, normally covered by a standard comprehensive ~
liability policy, insuring LESSEES and LESSORS against liability, loss and
expense for death or injuries to persons and damage to property caused by any
happening, accident or disaster occurring in or upon or in connection with the
leased premises in an amount of not less than FIVE HUNDRED THOUSAND DOLLARS
($500,000.00) with respect to injury or death to any one person and in an amount
of not less than ONE MILLION DOLLARS ($1,000,000.00) with respect to injuries or
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death to more than one person in any one such happening, accident or disaster
and in an amount of not lesS than FIVE HUNDRED THOUSAND DOLLARS ($500,000.00)
with respect to property damage resulting from any one such happening, accident
or disaster.
24. LESSEES shall be responsible for all plate glass installed on the
demised premises, and in this connection they shall at their own expense, pro-
cure plate glass insurance, the policy of insurance therefore to name LESSORS as
a co-insured. LESSEES' insurance carrier shall issue its certificate agreeing
to give LESSORS'at least twenty (20) days advance written notice prior to per-
mitting such insurance to be cancelled, to be modified, or to become expired.
25. LESSEES shall have access to a thoroughfare from the rear of store
premises to Fourth Lane for the purpose of parking, loading and unloading via
exitway situated at No. 232 Grand Avenue.
26. During the term of this Lease, if the City and County Taxes on
said premises are increased by any amount over the base year July, 1979 to
June, 1980.tax bill due to LESSEES' remodeling and constructing, new improve-
ments to said premises, then the LESSEE shall pay the entire amount of said tax
increase levied against the buildings situated at 230 and 232 Grand Avenue, in
the City of South San Francisco. Said tax assessment shall be in addition to
the amount of rental specified herein and shall be paid to LESSOR on demand.
In the event that the City and County Taxes on the building situated at 230-232
Grand Avenue are reduced by any amount over the base year 1982-83, then the
LESSOR shall .return to LESSEE an amount equal to eighty (80) percent of
LESSEE'S proportionate share of the property tax reduction. One-half of the
tax reduction will be reimbursed to the City on December 1st and the second
half on July 1st. However, if any taxes are imposed on this property then the
reimbusement shall be reduced accordingly.
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27. LESSEES shall have the opti.on and privilege of renewing this Lease
Agreement for three (3) additional years, or for each of three successive one-
year terms at the expiration of the term hereby granted, provided that they
shall have fully and faithfully performed all the terms and conditions hereof
to be performed by them and provided, further, that they shall give to the
LESSORS written notice of their election to exercise this option at least ninety
(90) days before the expiration of the original term hereof. LESSEES shall not
be entitled to exercise such option until after the commencement of the sixth
month immediately preceding the expiration of said original term.
This Lease for such additional term shall be identical with this
Lease in all respects, except that the monthly rental shall be subject to rent
adjustments pursuant to the Consumer Price Index for Urban Wage Earners and
Clerical Workers (CPI-W), for San Francisco-Oakland (1967:100) as discussed
above.
28. Any notice required to be given hereunder shall be given to
LESSEES at the demised premises and to LESSORS at their place of business,
namely No. 240 Grand Avenue, South San Francisco, unless LESSORS shall otherwise
notify LESSEES in writing. ~
29. Time shall be of the essence of this Lease Agreement.
IN WITNESS WHEREOF LESSORS AND LESSEES have executed this Lease
Agreement as of the day and year first hereinabove written.
ATTEST-
~ity Clerk
--- City of South San Francisco
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