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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 -1- 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%. -2- 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 -3- 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 -4- 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 · · 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 -5- 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 -6- 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 -7- 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 -8- to LESSORS. Whenever LESSORS undertake improvements at the request of LESSEES, · 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 -9- 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 -10- 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. -11- 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 -12-