CITY OF BELL GARDENS
CITY COUNCIL / SUCCESSORAGENCY TO THE COMMUNITY
DEVELOPMENT COMMISSION
JOINT MEETING
MONDAY, OCTOBER 9, 2023, 6:00 PM
AGENDA
LOCATION: CITY COUNCIL CHAMBERS, 7100 GARFIELD AVENUE, BELL GARDENS, CA90201 The meeting will be held at Bell Gardens City Hall in the Council Chambers. The public may attend the meeting in -person or virtually as instructed below. You may view the meeting live on the City's website at https://www.bellgardens.org/i-want-to/watch-city-council-meetings .
ACCESSIBILITY: If requested, the agenda and backup materials will be made available in appropriate alternative formats to persons with a disability, as required by Section 202 of the Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12132), and the federal rules and regulations adopted in implementation thereof. Any person who requires a disability -related modification or accommodation, in order to observe and/or offer public comment may request such reasonable modification, accommodation, aid, or service by contacting the City Clerk's office by telephone at 562-806-7704 or via email to CityClerkDesk; bellgardens.org no later than 72 -hours before the scheduled meeting.
PUBLIC PARTICIPATION: The members of the public may address the City Council / Agency Members on any item listed on the agenda or on matters which are not listed on the agenda but are within the subject matter jurisdiction of the City Council / Successor Agency. Public comments are limited to three (3) minutes per person for each designated public comment period(s). Public comments for non - agenda items will be limited to a total of 30 minutes. Public comments can be made by any of the following ways:
IN -PERSON: Members of the public can provide in -person comments at the podium in the Council Chamber. The Council Chambers will have seating available for members of the public to attend the meeting in person, subject to capacity limits. Public comments are limited to three (3) minutes for each designated public comment period(s) per speaker, unless a different time is announced by the presiding chair. Speakers who wish to address the City Council / Agency Members should do so by submitting a "Public Comment Card" card by 5:00 p.m. for Closed Session items and by 6:00 p.m. for all other designated public comment periods as listed.
BY TELEPHONE: Phone Number: (669)900-9128 Webinar ID: 813 3236 4343# Passcode: 2021# To address the City Council press *9 to raise your hand then *6 to unmute yourself when instructed.
VIRTUALLY LIVE: Members of the public may participate via Zoom by https://zoom.us/join and entering the Zoom Meeting I D: 813 3236 4343 Passcode: 2021
Comments may also be made via the Zoom app by using the "Raise Hand" feature when it is your turn to speak the host will unmute you. Comments will not be accepted in the QandA Chat function of the zoom app.
WRITTEN COMMENTS: Public comments may be emailed to [email protected] or mailed to: City Clerk's Office, 7100 Garfield Ave., Bell Gardens, CA 90201. To ensure distribution to the members of the City Council / Agency Members prior to consideration of the agenda, please submit
comments no later than one (1) hour prior to the meeting. Those comments, as well as any comments received after, will be distributed to the members of the City Council / Successor Agency and will be part of the official public record of this meeting.
For more information, you may contact the City Clerk's office during regular business hours 7:30 a.m. to 6:00 p.m., Monday through Thursday at (562) 806-7704.
PUBLIC HEARING: Public participation will be separately called for the public to provide comments at the time of each public hearing item. Speakers who wish to provide a comment should do so by submitting a "Public Comment Card" to the staff liaison, clerk, prior to the designated public comment period.
CALL TO ORDER
INVOCATION
PLEDGE OF ALLEGIANCE
ROLL CALL OF CITY COUNCIL MEMBERS / SUCCESSOR AGENCY TO THE COMMUNITY
DEVELOPMENT COMMISSION MEMBERS
Marco Barcena, Council Member/Agency Member
Gabriela Gomez, Council Member / Agency Member
Maria Pulido, Council Member/Agency Member
Jorge) Chavez, Mayor Pro Tem / Vice Chair
Francis De Leon Sanchez, Mayor/ Chair
PUBLIC HEARING (Item No. 1)
1. ORDINANCE NO. 937, AMENDING BELL GARDENS MUNICIPAL CODE TITLE 9 (ZONING AND PLANNING REGULATIONS) TO EXPAND DEFINITIONS OF
AUTOMOBILE BODY SHOP AND REPAIR USES AND ADD PROVISIONS FOR
AUTOMOBILE STORAGE
Introduction and first reading of Ordinance No. 937, amending Title 17, Zoning Code, of the Bell Gardens Municipal Code to accommodate vehicle parking/storage for automobile repair facilities as stand-alone parking lots when in connection to, or in the vicinity of, automobile repair facilities.
Recommendation:
It is staff's recommendation that the City Council:
1. Conduct a duly noticed public hearing;
2. Waive full reading and introduce Ordinance No. 937 (Exhibit 1) by title only, amending Title 9 (Zoning and Planning Regulations) of the Bell Gardens Municipal Code ("BGMC"); and
3. Find the proposed ordinance is exempt from the provisions of the California Environmental Quality Act ("CEQA") pursuant to State CEQA Guidelines Section 15061.
PUBLIC COMMENTS ON NON -AGENDA ITEMS UNDER THE SUBJECT MATTER
JURISDICTION OF THE CITY COUNCIL / SUCCESSOR AGENCY
During this time, the members of the public may address the City Council / Successor Agency regarding any items within the subject matter jurisdiction of the City Council / Successor Agency. Public comments are limited to 3 minutes per person subject to an overall 30 -minute period for non -agenda items.
Government Code Section 54590 prohibits the City Council / Successor Agency from taking action or 2 engaging in discussion on a specific item unless it appears on the agenda.
PUBLIC COMMENTS ON AGENDA ITEMS ONLY
During this time, the members of the public may address the City Council /Agency Members regarding any items listed on the agenda. Public comments are limited to 3 minutes per person.
CITY MANAGER'S REPORT
CONSENT CALENDAR (Item Nos. 2 - 13)
All matters listed under the Consent Calendar are considered to be routine and can be acted on by one roll call vote. There will be no separate discussion of these items unless members of the City Council / Successor Agency request specific items to be removed from the Consent Calendar for separate action.
Items called for separate discussion will be heard as the next order of business.
2. GENERAL MOTION TO WAIVE FULL READING AND APPROVE ORDINANCES BY TITLE ONLY PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 36934 In order to expedite the conduct of business at City Council meetings, California State Law (California Government Code Section 36934) allows Ordinances to be read by title if a majority of the legislative body supports the motion to waive the full reading.
Recommendation:
It is staffs recommendation that the City Council approve a general motion to waive full reading and approve Ordinances by title only pursuant to California Government Code Section 36934.
3. APPROVAL MINUTES OF SEPTEMBER 25, 2023 CITY / SUCCESSOR AGENCY JOINT
MEETINGS
Approve the minutes of the September 25, 2023 City/Successor Agency Joint Meetings.
Recommendation:
It is staff's recommendation that the City Council approve the minutes of the September 25, 2023 City/Successor Agency Joint Meeting.
4. WARRANT REGISTERS AND WIRE TRANSFERS
In approving the action of receiving and filing the warrant registers, the official minutes of the Bell Gardens City Council should state that each individual member of the City Council is not voting on, influencing the outcome of, or participating in approving, accepting, receiving or filing any warrant which bears the name of the same council member, or pays for any costs or expenses, or otherwise benefits the same named council member. Each council member will not be participating, influencing or voting on any such warrant bearing their name or which benefits the same named council member, but with that exception is voting in favor of receiving and filing all other warrants contained in this report, unless otherwise noted on the record at the time of the approval of the action required by this report.
Recommendation:
It is staff's recommendation that the City Council receive and file the warrant registers, wire transfers, and net payrolls dated 08/30/23, 09/07/23, 09/12/23 and 09/19/23.
5. WARRANT REGISTER SUCCESSOR AGENCY
In approving the action of receiving and filing the warrant registers, the official minutes of the Successor Agency should state that each individual member of the Successor Agency is not voting on, influencing the outcome of, or participating in approving, accepting, receiving or filing any 3 warrant which bears the name of the same Successor Agency Member, or pays for any costs or expenses, or otherwise benefits the same named Successor Agency Member. Each Successor Agency Member will not be participating, influencing or voting on any such warrant bearing their name or which benefits the same named Successor Agency Member, but with that exception is voting in favor of receiving and filing all other warrants contained in this report, unless otherwise noted on the record at the time of the approval of the action required by this report.
Recommendation:
It is staff's recommendation that the Successor Agency Members receive and file the warrant registers dated 09/12/23 and 09/19/23.
6. CLAIM REJECTION
A claim was filed with the City by the following claimants. Staff directed the claims to the City's general liability claims administrator Carl Warren & Company for processing, review, and investigation. Following the investigation, Carl Warren & Company and City staff determined that the City is not liable for the claims.
Recommendation:
It is staff's recommendation that the City Council reject the following claims and the claimants and/or their representatives be notified:
• Cesar Mejia v. City of Bell Gardens (DOE 7/11/2023; DOR 7/11/2023) • Ruben Martinez v. City of Bell Gardens (DOE 6/27/2023; DOR 6/27/2023) • Verny Omar Garcia v. City of Bell Gardens (DOE 7/25/2023; DOR 7/26/2023) The City's general liability claims administrator, Carl Warren & Company, recommends that the claims be rejected. The claimants, subject to certain exceptions, shall have up to six (6) months to file a court action subsequent to the City Council's rejection. 7 A RESOLUTION APPROVING A REIMBURSEMENT AGREEMENT WITH THE
CALIFORNIA STATE WATER RESOURCES CONTROL BOARD
Approval of a Reimbursement Agreement between the State Regional Water Quality Control Board and the City of Bell Gardens for required review and recommendations pertaining to the investigation and cleanup of the contaminated former Berk Oil and Pacific Metal Craft property located at 5600-5636 Shull Street ("Subject Site") as funded through the Department of Toxic Substances Control (DTSC) Equitable Communities Revitalization Grant (ECRG).
Recommendation:
It is staffs recommendation that the City Council:
1. Approve a Reimbursement Agreement with the California State Water Resources Control Board ("SWRCB") for their review and recommendations pertaining to the investigation and cleanup of the contaminated former Berk Oil and Pacific Metal Craft property located at 5600-5636 Shull Street ("Subject Site"), subject to City Attorney approval, as to form; and
2. Adopt a resolution authorizing the City Manager to execute a Reimbursement Agreement with SWRCB.
8. RESOLUTION APPROVING A SIXTH AMENDMENT TO THE BELL GARDENS
MARKETPLACE GROUND LEASE EXERCISING A FIRST EXTENSION OF THE LEASE TERM OPTION FOR AN ADDITIONAL TEN (10) YEARS
Sixth Amendment to the Bell Gardens Marketplace Ground Lease between the City of Bell Gardens and Prime / FRIT Bell Gardens, LLC exercising a first extension of the lease term option for an additional ten (10) years.
4 Recommendation:
It is staff's recommendation that the City Council adopt a Resolution approving a Sixth Amendment to the Bell Gardens Marketplace Ground Lease between the City of Bell Gardens and Prime / FRIT Bell Gardens, LLC exercising a first extension of the lease term for an additional ten (10) years.
9. CONSIDERATION OF A RESOLUTION AUTHORIZING ACCEPTANCE OF THE
CALIFORNIA DEPARTMENT OF TRANSPORTATION SUSTAINABLE
TRANSPORTATION PLANNING GRANT FUNDING
Consideration of a resolution authorizing acceptance of the California Department of Transportation Sustainable Transportation Planning Grant funding.
Recommendation:
It is staff's recommendation that the City Council adopt a Resolution authorizing acceptance of the California Department of Transportation Sustainable Transportation Planning Grant funding.
10. ADOPTION OF RESOLUTION AUTHORIZING THE TERMINATION OF ECO-RAPID
TRANSIT (ERT)
Eco-Rapid Transit ("ERT") is a Joint Powers Authority formed in 2003 to pursue development of a transit system along the Gateway Cities Corridor. The City of Bell Gardens ("City") became a member of ERT on September 24, 2012. In part due to ERT's advocacy, Los Angeles County Metropolitan Transportation Authority ("LA Metro") has resolved to develop the West Santa Ana Branch Transit Corridor ("WSAB") project — a light rail transit line that will connect southeast LA County to downtown Los Angeles. ERT has therefore served its purpose. The ERT Board of Directors unanimously voted in support of the formal termination of the Joint Powers Authority on September 13, 2023. Every member agency will need to formally adopt a resolution that authorizes its ERT representative to vote to terminate ERT at their last ERT Boarding meeting on November 8, 2023.
Recommendation:
It is staff's recommendation that the City Council adopt the attached resolution which authorizes its ERT representative to vote to terminate ERT and directs the City Manager and staff to take all needed actions to complete the City's withdrawal from ERT.
11. ACCEPTANCE OF ABC GRANT FUNDING
The Bell Gardens Police Department applied for, and has been awarded, $34,000 in grant funding from the Department of Alcoholic Beverage Control. The funds are to be used to support enforcement and education efforts of alcohol abuse.
Recommendation:
It is staff recommendation that the City Council adopt the attached Resolution accepting funds and entering into Agreement No. 23-APP05 with the Department of Alcoholic Beverage Control (ABC) Grant Acceptance Program and appropriate these funds for use by the BeII Gardens Police Department.
12. INSTALLATION OF RED CURB 'NO PARKING' RESTRICTIONS ADJACENT TO 6021
FLORENCE AVENUE
Consideration of a resolution to authorize the installation of seven (7) feet of red curb `no parking' restrictions adjacent to 6021 Florence Avenue to improve sight distance for vehicles exiting the commercial center onto Jaboneria Road.
Recommendation:
5 It is staff's recommendation that the City Council adopt the attached Resolution authorizing seven (7) feet of red curb 'no parking' restrictions along the east side of Jaboneria Road, north of the northerly driveway adjacent to the commercial facility at 6021 Florence Avenue.
13. MEMORANDUM OF UNDERSTANDING WITH THE LOS ANGELES COUNTY
METROPOLITAN TRANSPORTATION AUTHORITY FOR COLLECTING AND
REPORTING DATA FOR THE NATIONAL TRANSIT DATABASE FOR REPORT YEAR 2021
Consideration of a Resolution authorizing the City Manager to execute the Proposition A Discretionary Incentive Grant Program Memorandum of Understanding for Collecting and Reporting Data for the National Transit Database for Report Year 2021.
Recommendation:
It is staff's recommendation that the City Council adopt the attached Resolution authorizing the City Manager to execute the Proposition A Discretionary Incentive Grant Program Memorandum of Understanding for Collecting and Reporting Data for the National Transit Database for Report Year 2021.
DISCUSSION (Item Nos. 14 - 15)
14. LOCAL COMMISSIONS APPOINTMENT LIST
The Local Commissions Appointments List outlines the City of Bell Gardens Commissions and Commissioners. Per the Bell Gardens Municipal Code, City Commissions consist of Bell Gardens residents appointed by each member of the City Council. Council Members may remove commissioners during any regular City Council meeting and may appoint commissioners following 10 working days after the posting of the vacancy notice.
Recommendation:
It is staff's recommendation that the City Council review the Commissions Appointments List and by motion, remove commissioners and/or make appointments to the posted vacancies.
15. UPDATED INVENTORY FOR VACANT AND/OR ABANDONED PROPERTY CITYWIDE TO INCLUDE VACANT LEASE SPACE AND PARTIALLY VACANT PROPERTY OVER 5,000 SF
Discussion of updated vacant/abandoned land and/or building registration inventory with added vacant lease spaces and partially vacant property as requested by City Council on September 25, 2023.
Recommendation:
It is staff's recommendation that the City Council take one of the following actions:
1. Receive and file this report and take no further action;
2. Direct staff to prepare a vacant property registration ordinance for consideration at a future public hearing; or
3. Provide staff with other direction.
CITY COUNCIL / SUCCESSORAGENCY MEMBER COMMENTS
ADJOURNMENT
Daisy Gomez, City Clerk
Agenda posted on October 5, 2023.
6 CITY OF BELL GARDENS
OFFICE OF THE CITY MANAGER
AGENDA REPORT
Item 1.
TO:
FROM:
BY:
SUBJECT:
Honorable Mayor and City Council Members
Michael B. O'Kelly, City Manager
Gustavo Romo, Community Development Director
ORDINANCE NO. 937, AMENDING BELL GARDENS MUNICIPAL CODE TITLE 9 (ZONING AND PLANNING REGULATIONS) TO EXPAND DEFINITIONS OF
AUTOMOBILE BODY SHOP AND REPAIR USES AND ADD PROVISIONS FOR
AUTOMOBILE STORAGE
DATE: October 9, 2023
RECOMMENDATION:
It is staff's recommendation that the City Council:
1. Conduct a duly noticed public hearing;
2. Waive full reading and introduce Ordinance No. 937 (Exhibit 1) by title only, amending Title 9 (Zoning and Planning Regulations) of the Bell Gardens Municipal Code ("BGMC"); and
3. Find the proposed ordinance is exempt from the provisions of the California Environmental Quality Act ("CEQA") pursuant to State CEQA Guidelines Section 15061.
BACKGROUND/DISCUSSION:
On September 20, 2023, the Planning Commission adopted PC Resolution #PC 2023-06 recommending to the City Council approval of Zoning Code Amendment ("ZCA") No. 2023-062 and adoption of Ordinance No. 937 (Exhibit 1) amending the Bell Gardens Municipal Code ("BGMC") to allow overflow vehicle parking/storage for automobile repair facilities on off -site parcels.
Current Zoning Code provisions regulate truck and automotive sales, rental, and/or storage traditionally intended for fleet vehicles, with limitations on minor repairs which are required to be conducted within enclosed spaces. Overflow vehicle parking/storage for automobile repair facilities is only provided as accessory, or ancillary to, where automobile repair facilities and automobile sales dealerships, rental agencies, and sightseeing agencies are permitted as principal uses. As such, automobile repair businesses are challenged in utilizing this standard to alleviate parking and temporary storage area shortfalls for vehicles queuing. The proposed draft ordinance would conditionally permit overflow vehicle parking/storage for automobile repair facilities as a primary use as long as it is connected to an automobile service use in the certain commercial/industrial zones, with specialized development standards added when adjacent to other zones and/or residential uses.
Automobile repair uses and facilities within the City of Bell Gardens are required to conduct all repairs within an enclosed building. Unenclosed areas are meant for parking and incidental storage to accommodate the safety and comfort of customers as well as the efficient movement of vehicles. These facilities are often overburdened with automobiles queueing for service or temporary storage and parking. In many cases, the overflow vehicle parking/storage for automobile repair facilities component of a business is a major portion of, and frequently greater than, the facility itself can accommodate, thereby overflowing onto the public streets and impacting the immediate neighborhood. Often, these facilities are adjacent to a residential neighborhood and customer vehicles awaiting 7 repair end up parked on the residential streets. Although the limitation of on -street parking in residential areas is also the result of dense neighborhoods, crowded living situations, collection and storage of multiple personal vehicles, and un-/underutilized parking garages, residents get upset when these businesses do not adhere to the spirit of the law and conduct all business within their own parcels. This ordinance is intended to provide an option to mitigate this impact.
PROJECT/SITE DESCRIPTION:
To accommodate overflow vehicle parking/storage for automobile repair, the ordinance proposes to clarify overflow vehicle parking/storage for automobile repair facilities as an accessory or primary use when connected to, or in the vicinity of, existing or proposed automobile repair facilities.
The proposed ordinance language also expands the definitions of automobile body shop and automobile repair, major and minor, to include locational criteria when an overflow vehicle parking/storage for automobile repair facilities area is proposed where there is no building in which activity or repair could be conducted. Language revisions and added provisions are proposed as identified in the draft ordinance attached as Exhibit 2.
Ordinance No. 937 proposes the following amendments:
1. Bell Gardens Municipal Code Title 9, Planning and Zoning, Chapter 9.04, "Definitions," Section 9.04.010 "A" definitions," is amended as follows (underlining denotes additions; strikethrough denotes deletions):"Automobile body shop" shall mean a building wherein repair to the body of an automobile takes place, including painting but excluding engine repair or other maintenance services. "Automobile body repair" shall mean collision repair or reconstruction of automobile or truck bodies within an enclosed building, including painting, but no work defined as "major automobile repair," and may include outdoor storage of vehicles where no re Dair is done as an offsite primary use if within 500 feet of and ancillary to the repair site, excluding inoperable, impounded and salvage vehicles. "Automobile repair, major" shall mean engine rebuilding or major reconditioning of work or damages to motor vehicles or trailers, excluding auto body/collision service, frame or fender straightening, or repair and painting of vchicics "automobile body repair," and may include outdoor storage of vehicles where no repair is done as an offsite primary use if within 500 feet of and ancillary to the repair site. excluding inoperable. impounded and salvage vehicles.
"Automobile repair, minor" shall mean incidental repairs, replacement of parts, motor service to automobiles, smog state inspection, but not including any operation specified under "automobile repair, major," and may include outdoor storage of vehicles where no repair is done as an offsite primary use if within 500 feet of and ancillary to the repair site, excluding inoperable, impounded and salvage vehicles.
2. Bell Gardens Municipal Code Title 9, Planning and Zoning, Chapter 9.12.030,"Permitted land uses," "Table 9.12A: Commercial Land Use Matrix*," is amended as follows (underlining denotes additions):
Uses
-U C -S
Zone Zone
C-3
Zone
C C -
Zone Zone
Special Requirements
A: Accessory UseC: Conditional UseP: Principal UseS: Site Plan Review(PC)T Temporary Use
Automobile general
repair
P
P
P
Includes brake repair shops, engine
and mechanical repair, muffler shops,
tire repair and sales (new tires only),
but excludes complete engineer
8 Uses
M -U
Zone
C -S
Zone
C-3
Zone
C-4
Zone
C -M
Zone
buildin. macJii °.f9,..or.weldinfgiall
opera I. _9`% t TtiNr nn vithin
A: Accessory UseC:
Conditional
L
TEmporary
seP:
Prince
U
P * ":= • :'• '' ' Review (PC)T:
�;`fer to Division 4 of this title,
SuJp ernes a Deve uprnen
Standards 9.28.010.
3. Bell Gardens Municipal Code Title 9, Planning and Zoning, Chapter 9.14.030, "Permitted land uses," "Table 9.14A: Industrial Land Use Matrix*," is amended as follows (underlining denotes additions; strikethrough denotes deletions):
Uses
M
1 Special Requirements
A: Accessory UseC: Conditional UseP: Principal UseS: Site Plan Review(PC)T.• Temporary Use
Automobile uses: Including brake repair shops, body
and fender repair shops, muffler shops, paint spray
booths, repair garages, radiator shops, seat covers
manufacturing, assembly, rentals, painting, and sales
P
Refer to Division 3 of this title,
Special Uses; also see
Footnote Nos. 1 2
and at end
of table.
Standards 9.28.010.
4. Bell Gardens Municipal Code Title 9, Planning and Zoning, Chapter 9.28, "Automobile and Outdoor Storage," Section 9.28.020 "Outdoor Storage," is amend as follows (underlining denotes additions; strikethrough denotes deletions):
9.28.020 Outdoor storage.
The maintenance of an open storage area is permitted at the rear of the property, or as a primary use that is an offsite ancillary to an automobile repair site. in connection with the operation of a business otherwise required to be within an enclosed building is permittcd, provided the following standards are complied with:
G. All inspection, repair. servicing. and testing of automobiles outside of an enclosed building is prohibited.
5. Bell Gardens Municipal Code Title 9, Planning and Zoning, Chapter 9.38, "Parking & Loading (Off - Street)," Section 9.38.050"Required parking and loading spaces", Items 2 and 3 (Commercial Uses and Industrial Uses, respectively) of part C (Parking and Loading Facilities Matrix) is amended and enacted to add the standard as follows:
Use
Parking Spaces or Facilities
Required
2.Commercial Uses
Automobile general repair
1. One parking space for each two
employees on the largest shift or for
each 250 square feet of floor area,
whichever is greater;
2. One parking space for each
vehicle operated or kept in
connection with the use;
3. One parking space for each
1.000 square feet of open area
9 Use
de 's• : r, .:.IS{ • iles agities
provided, ho . ri --,; where such
area exceeds ' 0,000 square -eet,
only one barking space need be
provided for each 5,000 square feet
of such area in excess of the first
10,000 square feet contained in
such area, or one space for each
two employees, whichever is
greater.
3.1 ndustrial Uses
Automobile uses: Including brake repair shops, body
and fender repair shops, muffler shops, paint spray
booths, repair garages, radiator shops, seat covers
manufacturing, assembly, rentals, painting, and sales
1. One parking space for each two
employees on the largest shift or for
each 250 square feet of floor area,
whichever is greater;
2. One parking space for each
vehicle operated or kept in
connection with the use;
3. One parking space for each
1,000 se uare feet of o Den area
devoted to automobile storage:
provided, however, that where such
area exceeds 10,000 square feet,
only one barking space need be
provided for each 5,000 square feet
of such area in excess of the first
10,000 square feet contained in
such area, or one space for each
two employees, whichever is
greater.
General Plan Consistency:
The proposed ordinance is consistent with the Bell Gardens General Plan Land Use Element:
• Policy No. 3, as it would promote compatible commercial development to emphasize commercial identity and enhance the appearance, potential economic vitality, and revitalization of commercial areas in the City since projects would be encouraged to invest in elegant solutions to effectively program private property space for reduced traffic; and
• Policy No. 5, as it advances the provision to stimulate local employment, property values, community stability, and the economic vitality of existing local businesses because codified subjective development standards streamline review of alternatives to reduce congested public rights -of -way and grow private enterprise, saving time and money.
The proposed ordinance would also be consistent with Bell Gardens General Plan Circulation Element Policy M 2.6 and Program M2.b. Policy M 2.6 emphasizes the City's Commitment to place safety and reduction of collisions on high priority and Program M 2.b states the City will assist applicants with demonstrating compliance with mobility policies. The proposed draft ordinance would achieve Policy M 2.6 and Program M 2.b of the Circulation Element by ensuring overflow vehicle parking/storage for automobile repair facilities uses implement standards that 10 accommodate business expansion, safe and shared use of the public right-of-way, and neighborhood compatibility because fewer automobile repair facilities and automobiles would be temporarily stored in front of Americans with Disabilities Act ("ADA") access, fire hydrants, and driveway aprons, and line of sight distance visibility would be increased.
Connection to Bell Gardens Municipal Code:
During the regularly scheduled Planning Commission meeting on September 20, 2023, the Planning Commission voiced concern over applicability of current regulations on proposed projects to ensure development standards are met to maintain compatibility with and blending into the existing neighborhoods. Ordinance No. 937 implementation would rely upon the foundation of the existing municipal code.
BGMC Section 9.58.040.
Current Zoning Code regulations contain language that subject the special use of automobile storage to discretionary review by the Planning Commission where contents of a site plan require depictions of all existing and proposed site improvements, including landscaping and pavement. The Planning Commission has discretion to conditionally approve proposed uses and require reasonable additions to requirements based on impacts to the surrounding community.
BGMC Chapter 9.04.
Current Zoning Code definitions prohibit the maintenance, retention, and/or storage of all inoperable vehicles and the proposed ordinance provisions support development standards and other requirements to avoid the appearance or perception an automobile impound yards since landscaping and site improvements would be subject to Planning Commission discretion.
BGMC Section 9.28.010.
Current Zoning Code regulations contain language that requires certain solid masonry fence, wall, and gate height requirements that would completely enclose a proposed automobile storage /outdoor storage area.
BGMC Section 9.34.030.
All required setback areas in nonresidential zones would continue to be required to be completely landscaped and irrigated. In addition to the setback areas, a minimum of five percent (5%) of the parking area, which includes all required drive aisles, would also be required to be landscaped. In areas where the parking is not visible from the street or surrounding properties, the Planning Commission would continue to have the discretion to require and conditionally approve the parking area landscaping concentration in areas visible from the street through a site plan review application. Current development standards contained within the Zoning Code would apply to all proposed projects.
BGMC Section 9.38.070.
Customer parking spaces would still be required for overflow vehicle parking/storage for automobile repair facilities unless expanded exceptions are authorized based on proximity to major transit route corridors.
ENVIRONMENTAL REVIEW:
Staff recommended to the Planning Commission that proposed Ordinance No. 937 be found exempt from the California Environmental Quality Act ("CEQA") pursuant to CEQA Guidelines General Rule Section 15061(b)(3) in that there is no possibility that the proposed amendment may have significant effects upon the environment since no specific activity would be authorized and individual projects would be analyzed prior to issuance of any permit for activity that may cause either a direct, or a reasonably foreseeable indirect physical change in the environment.
After the Planning Commission heard, and deliberated on, the analysis and public testimony, it was recommended 11 that the proposed ordinance be found exempt from CEQA.
CONCLUSION:
The Planning Commission found that proposed provisions contained in Ordinance No. 937 are necessary to allow property owners alternatives to establishing compatible development that utilizes effective standards to decrease impacts to existing neighborhoods and expand business prospects. Ordinance No. 937 would allow the conditional permitting of overflow vehicle parking/storage for automobile repair facilities as a use connected to automobile service uses in the Commercial/Manufacturing Zone and the Light Industrial Zone. Ordinance implementation would assist in the reduction of on -street parking impacts to include the increase of the distance a motorist could see approaching vehicles, bicyclists, and pedestrians, enable resident and visitor drivers to access the multi -modal network promoted in the City's Circulation Element, and maintain viable business alternatives that create opportunity for participation in area economic vitality, investment, revitalization, and uplift of existing neighborhoods. As such, staff finds that the proposed ordinance merits adoption.
Pursuant to public noticing requirement provisions contained in BGMC Section 9.54.010, the community was properly notified of the public hearing to consider Ordinance No. 937 and options for participation were provided by posting and advertisement in the Bell Gardens Review, a Daily Journal Corporation newspaper. On September 28, 2023, a public hearing notice was published in the newspaper and copies were posted at the City Hall, John Anson Ford Park, Veterans Park— Ross Hall Auditorium and the City Department of Public Works.
FISCAL IMPACT:
The proposed ordinance would be incorporated into the existing Zoning Code framework and would require staff oversight and management. However, the application of the ordinance would occur along with other current services already provided by the Community Development Department. Therefore, no fiscal impact is anticipated.
ATTACHMENTS:
Exhibit 1 - Ordinance No. 937
Exhibit 2 - Resolution #PC 2023-06
Exhibit 3 - Public Hearing Notice
APPROVED ELECTRONICALLY BY:
Michael B. O'Kelly, City Manager
Stephanie Vasquez, City Attorney and/or Susie Altamirano, Assistant City Attorney Manuel Carrillo, Director of Finance and Administrative Services 12 DRAFT ORDINANCE NO. 937
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BELL
GARDENS, CALIFORNIA, AMENDING BELL GARDENS MUNICIPAL
CODE TITLE 9 (ZONING AND PLANNING REGULATIONS) TO EXPAND
DEFINITIONS OF AUTOMOBILE BODY SHOP AND REPAIR USES AND
ADD PROVISIONS FOR AUTOMOBILE STORAGE
WHEREAS, the City of Bell Gardens ("City") is a general law city, incorporated under the laws of the State of California;
WHEREAS, pursuant to its police power, the City may enact and enforce laws within its boundaries which promote the public health, morals, safety, or general welfare of the community, and are not in conflict with general laws; WHEREAS, California Constitution Article XI, Section 7, enables cities to make and enforce local land use regulations;
WHEREAS, the General Plan's Land Use Element Policy 3 emphasizes the City's commitments to promote compatible commercial development to emphasize commercial identity and to enhance the appearance, potential economic vitality, and revitalization; WHEREAS, the General Plan's Land Use Element Policy 4 promotes the City's encouragement to maintain and rehabilitate existing industrial uses and private investment in the City's industrial economic base while ensuring compliance with necessary environmental requirements;
WHEREAS, the General Plan's Land Use Element Policy 5 acknowledges the City's support of providing an environment to stimulate local employment, property values, community stability, and the economic vitality of existing local businesses; WHEREAS, historically, residential neighborhoods in the City of Bell Gardens adjacent to automobile body shop and repair uses have experienced limited, unattractive, and unsafe on -street parking availability; WHEREAS, the City seeks to amend land use matrices and development standards in certain zones to minimize the impact of public, on -street parking utilization that encourages developers and businesses to design and build to incorporate compatible development for the City's various land use categories; WHEREAS, the proposed amendment would streamline review and processing of entitlement requests;
WHEREAS, the City finds it necessary to amend the BeII Gardens Municipal Code ("BGMC") to add language to expand definitions for automobile body shop and repair uses and add provisions for automobile storage to address potential neighborhood Exhibit 1 13
Ordinance No. 937
Page No. 2
impacts, and provide a framework for determination of compliance with applicable development standards through proposed Ordinance No. 937 ("Ordinance") to relieve limited on -street parking availability and to express the community's vision for long-term resilient and sustainable development;
WHEREAS, it can be seen with certainty that the action on the proposed Ordinance will cause no direct or indirect impact on the environment pursuant to the California Environmental Quality Act ("CEQA") (Pub. Res. Code § 21000 et seq.) and the CEQA Guidelines (Cal. Code Regs., Title 14, § 15000 et seq.) WHEREAS, pursuant to California Government Code Sections 65854 and 65090, the Planning Commission conducted a duly noticed public hearing on September 20, 2023, and considered and reviewed all facts and evidence, both written and testimonial, and all other pertinent documents pertaining to this proposed Ordinance and zoning Code amendment; and
WHEREAS, after the close of such public hearing, the Planning Commission adopted Planning Commission Resolution #2023-06 recommending to the City Council the approval of Zoning Code Amendment No 2023-062.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BELL GARDENS DOES ORDAIN AS FOLLOWS:
SECTION 1. Findings and Purpose. In adopting this Ordinance, the City Council finds and declares as follows:
The above recitals are true and correct and incorporated. ii. Ordinance No. 937 serves the public health, safety, and welfare of the residents and businesses within the City by establishing a framework for review and determination.
iii. Ordinance No. 937 is consistent with the City's General Plan and state law. iv. Ordinance No. 937, amending the City of Bell Gardens Municipal Code, presents no risk to the public health and safety.
SECTION 2. Bell Gardens Municipal Code Title 9, Planning and Zoning, Chapter
9.04, "Definitions," Section 9.04.010 "A" definitions," is amended as follows (underlining denotes additions; strikethrough denotes deletions):
"Automobile body shop" shall mean a building wherein repair to the body of an automobi e tales p ace, inc uding painting but exc uding engine repair or other maintenance services.
Exhibit 1 14
Ordinance No. 937
Page No. 3
"Automobile body repair" shall mean collision repair or reconstruction of automobile or truck bodies within an enclosed building, including painting, but no work defined as "major automobile repair," and may include outdoor storage of vehicles where no repair is done as an offsite primary use if within 500 feet of and ancillary to the repair site. excluding inoperable, impounded and salvage vehicles.
"Automobile repair, major" shall mean engine rebuilding or major reconditioning of work or damages to motor vehicles or trailers, excluding auto body/co ision service, frame or fender straightening or repair and Asir,+ing of vehicles "automobile body repair," and may include outdoor storage of vehicles where no repair is done as an offsite primary use if within 500 feet of and ancillary to the repair site, excluding inoperable, impounded and salvage vehicles.
"Automobile repair, minor" shall mean incidental repairs, replacement of parts, motor service to automobiles, smog state inspection, but not including any operation specified under "automobile repair, major," and may include outdoor storage of vehicles where no repair is done as an offsite primary use if within 500 feet of and ancillary to the repair site, excluding inoperable, impounded and salvage vehicles.
SECTION 3. Bell Gardens Municipal Code Title 9, Planning and Zoning, Chapter
9.12.030, "Permitted land uses," "Table 9.12A: Commercial Land Use Matrix*," is amended as follows (underlining denotes additions):
Uses
M -U
Zone
C -S
Zone
C-3
Zone
C-4
Zone
C -M
Zone
Special Requirements
A: Accessory Use C: Conditional Use P: Principal Use S: Site Plan Review (PC) T: Temporary Use Automobile
general repair
P
P
P
P
Includes brake repair shops, engine and mechanical repair, muffler shops, tire repair and sales (new tires only), but excludes_complete engine rebuilding, machining, or welding; all operations must be conducted within an enclosed building.
Refer to Division 4 of this title, Supplemental Development Standards 9.28.010.
SECTION 4. Bell Gardens Municipal Code Title 9, Planning and Zoning, Chapter
9.14.030, "Permitted land uses," "Table 9.14A: Industrial Land Use Matrix*," is amended as follows (underlining denotes additions; strikethrough denotes deletions):
Uses
M-1
Special Requirements
A: Accessory Use C: Conditional Use P: Principal Use S: Site Plan Review (PC) T: Temporary Use Automobile uses: Including brake repair shops, body and fender repair shops, muffler shops, paint spray booths, repair garages, radiator shops, seat covers manufacturing,
assembly, rentals, painting, and sales
P
Refer to Division 3 of this title, Special
Uses; also see Footnote Nos. 1 and 2 at
end of table.
Refer to Division 4 of this title
Supplemental Development Standards
9.28O 1 Q_
Exhibit 1 15
Ordinance No. 937
Page No. 4
SECTION 5. Bell Gardens Municipal Code Title 9, Planning and Zoning, Chapter
9.28, "Automobile and Outdoor Storage," Section 9.28.020 "Outdoor storage," is amended as follows (underlining denotes additions; strikethrough denotes deletions):
9.28.020 Outdoor storage.
The maintenance of an open storage area is permitted at the rear of the property, or as a primary use that is an offsite ancillary to an automobile repair site. in connection with the operation of a business otherwise required to be within an enclosed building is permitted, provided the following standards are complied with:
G. All inspection, repair, servicing, and testing of automobiles outside of an enclosed building is prohibited.
SECTION 6. Bell Gardens Municipal Code Title 9, Planning and Zoning, Chapter
9.38, "Parking & Loading (Off -Street)," Section 9.38.050 "Required parking and loading spaces", Items 2 and 3 (Commercial Uses and Industrial Uses, respectively) of part C (Parking and Loading Facilities Matrix) is amended and enacted to add the standard as follows:
Use
Parking Spaces or Facilities Required
2. Commercial Uses
Automobile general repair
1. One parking space for each two employees on the largest shift or for each 250 square feet of floor area, whichever is greater;
2. One parking space for each vehicle operated or kept in connection with the use;
3. One parking space for each 1 COO scuare feet of open area devoted to automobile storace: provided, however, that where such area exceecs 10 000 scuare feet only one parking space neec Pe provided for each 5,000 scuare feet of such area in excess of the first 10.000 scuare feet containec in such area. or one space for each two employees, whichever is greater.
3. Industrial Uses
Automobile uses: Including brake repair
shops, body and fender repair shops,
muffler shops, paint spray booths, repair
garages, radiator shops, seat covers
manufacturing, assembly, rentals, painting,
and sales
1. One parking space for each two employees on the largest shift or for each 250 square feet of floor area, whichever is greater;
2. One parking space for each vehicle operated or kept in connection with the use;
3. One parking space for each 1.000 scuare feet of open area devoted to automobile storage; provided, however, that where such area exceeds 10,000 scuare feet, only one parking space need be provided for each 5,000 square feet of such area in excess of the first 10,000 square feet contained in such area, or one space for each two employees, whichever is greater.
Exhibit 1 16
Ordinance No. 937
Page No. 5
SECTION 7. Compliance with California Environmental Quality Act. The City Council finds that Ordinance No. 937 amending the Bell Gardens Zoning Code is exempt from the California Environmental Quality Act (CEQA) under the following provisions of the CEQA Guidelines: Section 15061(b)(3) because there is no possibility that it may have a significant effect upon the environment; and under Section 15378, this Ordinance is not a project under CEQA because it will not cause a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment because it does not authorize any specific activity.
SECTION 8. If any section, subsection, sentence, clause, phrase, or portion of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance, and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions might subsequently be declared invalid or unconstitutional.
SECTION 9. The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause this Ordinance to be published or posted as required by law, which shall take full force and effect thirty (30) days from its adoption.
PASSED, APPROVED AND ADOPTED this
day of , 2023.
THE CITY OF BELL GARDENS
Francis De Leon Sanchez, Mayor
APPROVED AS TO FORM: ATTEST:
Exhibit 1 17
Ordinance No. 937
Page No. 6
Stephanie Vasquez
City Attorney
Daisy Gomez
City Clerk
Exhibit 1 18
RESOLUTION #PC 2023-06
A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF
BELL GARDENS RECOMMENDING CITY COUNCIL APPROVAL AND
ADOPTION OF ZONING CODE AMENDMENT 2023-062 TO AMEND
BELL GARDENS MUNICIPAL CODE TITLE 9 (ZONING AND PLANNING
REGULATIONS) TO EXPAND DEFINITIONS OF AUTOMOBILE BODY
SHOP AND REPAIR USES AND ADD PROVISIONS FOR AUTOMOBILE
STORAGE
WHEREAS, the City of BeII Gardens ("City") is a general law city, incorporated under the laws of the State of California;
WHEREAS, California Constitution Article XI, Section 7, enables cities to make and enforce local land use regulations;
WHEREAS, the BeII Gardens General Plan ("Plan") articulates the community's vision and is implemented by an effective Zoning Code;
WHEREAS, the proposed zoning text amendment is consistent with furthering the goals and objectives of the Plan to ensure the needs of the residents are met; WHEREAS, the City seeks to expand the definitions of automobile body shop and automobile repair, major and minor to clarify permissible activity that may occur relative to automobile storage;
WHEREAS, provisions that allow and regulate automobile storage relative to automobile repair facilities accommodates viable business expansion alternatives, orderly development, and addresses limited public right-of-way parking availability; WHEREAS, the City finds it necessary to amend the BeII Gardens Municipal Code ("BGMC") to add language to permit and conditionally permit automobile storage in certain zones through proposed Ordinance No. 937 ("Ordinance"); WHEREAS, the proposed Ordinance would streamline review and processing of entitlement requests and ensure community compatibility to express the community's vision for long term resilient and sustainable development; WHEREAS, the proposed ordinance would implement Policy No. 3 of the General Plan's Land Use Element to promote compatible commercial development to emphasize commercial identity and enhance the appearance, potential economic vitality, and revitalization of commercial areas in the City since projects would be encouraged to invest in elegant solutions to effectively program private property space for reduced traffic;
WHEREAS, the proposed ordinance would implement Policy No. 5 of the General Plan's Land Use Element to promote the provision of an environment to stimulate local employment, property values, community stability, and the economic vitality of existing Exhibit 2 19
Resolution #PC 2023-06
Local businesses because codified subjective development standards streamline review of alternatives to reduce congested public rights -of -way and expand private enterprise, saving time and money;
WHEREAS, the Bell Gardens General Plan Circulation Element Policy M 2.6 and Program M 2.b that emphasizes the City's Commitment to place safety and reduction of collisions on high priority and states the City will assist applicants with demonstrating compliance with mobility policies would be promoted by ensuring automobile storage uses implement standards that accommodate business expansion, safe and shared use of the public right-of-way and existing neighborhood compatibility ; WHEREAS, pursuant to California Government Code Sections 65854 and 65090, the Planning Commission duly noticed, agendized, and conducted the public hearing on this matter on August 16, 2023;
WHEREAS, the Planning Commission considered all public comments received both before and during the public hearing, the presentation by City staff, the relevant staff report, and all other pertinent documents regarding the proposed Zoning Code Amendment No. 2023-062; and
WHEREAS, after the close of such public hearing, the Planning Commission adopted Planning Commission Resolution #2023-06 recommending to the City Council the approval of Zoning Code Amendment No 2023-062.
NOW, THEREFORE, THE PLANNING COMMISSION OF THE CITY OF BELL GARDENS HEREBY RESOLVES AND DETERMINES AS FOLLOWS:
SECTION 1. The recitals set forth above are hereby incorporated by this reference as if set forth in full herein.
SECTION 2. In recommending approval of Zoning Code Amendment No. 2023- 062 and adoption of Ordinance No. 937 the Planning Commission finds as follows:
The above recitals are true and correct and hereby incorporate them herein by this reference.
ii. Ordinance No. 937 serves the public health, safety, and welfare of the residents and businesses within the City by encouraging the innovative use of alternative options for automobile storage relative to automobile repair businesses and facilities.
iii. Ordinance No. 937 is consistent with the City's General Plan. iv. Ordinance No. 937 amending the BGMC presents no reasonably foreseeable risk to the public health and safety.
Exhibit 2 20
Resolution #PC 2023-06
SECTION 3. The Planning Commission hereby adopts this Resolution recommending to the City Council the approval of Zoning Code Amendment No. 2023- 062 and adoption of Ordinance No. 937.
SECTION 4. Action on Zoning Code Amendment No. 2023-062 recommending City Council adopt Ordinance No. 937, is exempt from the California Environmental Quality Act ("CEQA") pursuant the following provisions of the CEQA Guidelines: Section 15061(b)(3) because there is no possibility that it may have a significant effect upon the environment; and under Section 15378, this Ordinance is not a project under CEQA because it will not cause a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment because it does not authorize any specific activity.
SECTION 5. The Planning Commission of the City of Bell Gardens hereby transmits and recommends to the City Council approval of Zoning Code Amendment No. 2023-062 and adoption of Ordinance No. 937 amending the Bell Gardens Municipal Code (Zoning and Planning).
PASSED, APPROVED AND ADOPTED this 20th day of September 2023.
T6NY RIVE CHAIRPERSON
ATTEST:
{
ERIKA GUTIERREZ, PLANNING E ETARY
APPROVED AS TO FORM:
LLOYD PILCHEN
ASSISTANT CITY ATTORNEY
Exhibit 2 21
NOTICE OF PUBLIC HEARING
CONSIDERATION OF ADOPTION OF ORDINANCE NO. 937 AMENDING BELL GARDENS MUNICIPAL CODE TITLE 9 "ZONING AND PLANNING REGULATIONS"
TO EXPAND DEFINITIONS OF AUTOMOBILE BODY SHOP AND REPAIR USES AND
ADD PROVISIONS FOR AUTOMOBILE STORAGE
NOTICE IS HEREBY GIVEN, the City Council of the City of Bell Gardens will conduct a public hearing to consider the adoption of a resolution and approval of Ordinance No. 937 to clarify Chapter 9.04.010 "Definitions," Chapter 9.12.030 "Commercial Zones Permitted Land Use," Chapter 9.14.030 "Industrial Zones Permitted Land Use," and to add provisions for automobile storage in Chapter 9.28 "Automobile and Outdoor Storage." Copies of the proposed changes are available for review at Bell Gardens City Hall and on our website at https://www.bellgardens.org/government/city-departments/public- notifications.
DATE OF HEARING: Monday, October 9, 2023
TIME OF HEARING: 6:00 P.M., or as soon thereafter as possible.
ENVIRONMENTAL DETERMINATIONS: The proposed ordinance is exempt from the California Environmental Quality Act ("CEQA") (Pub. Res. Code § 21000 et seq.) under the common sense exemption set forth at California Code of Regulations, Title 14, § 15061(b)(3) ("CEQA Guidelines") because it can be seen with certainty that there is no possibility that the adoption of this proposed resolution recommending approval of an ordinance accommodating parking would have a significant effect on the environment and the proposed ordinance constitutes an activity not considered a project according to section 15060(c) (3) since there is no anticipation of a direct or reasonably foreseeable indirect physical change in the environment pursuant to section 15060(c)(2).
INVITATION TO BE HEARD/PUBLIC PARTICIPATION: The public hearing will be held before the City of Bell Gardens City Council on Monday, October 9, 2023, at 6:00 p.m.
The public may attend the meeting in person or may view the meeting online. The meeting will be recorded and live streamed on the City's website at https://www.bellgardeins.org/i-waint-to/watch-city-couincil-meetings . Public comments for the public hearing are limited to three (3) minutes per person. Members of the public can access and participate in the meetings as follows:
IN -PERSON: Members of the public can provide in -person comments at the podium in the Council Chamber. The Council Chamber will have seating available for members of the public to attend the meeting in -person, subject to capacity limits. Public comments for the public hearing are limited to three (3) minutes per speaker. Speakers who wish to address the City Council should do so by submitting a "Public Comment Card" by 6:00 p.m. for all other designated public comment periods as listed.
BY TELEPHONE: Phone Number: (669) 900-9128 Webinar ID: 813 3236 4343# Passcode: 2021# to address the City Council press *9 to raise your hand then *6 to unmute yourself when instructed.
Exhibit 3 22
VIRTUALLY LIVE: Members of the public may participate via Zoom by clicking here https://zoom.us/join and entering the Zoom Meeting ID: 813 3236 4343 Passcode:
2021 Comments may also be made via the Zoom app by using the "Raise Hand" feature when it is your turn to speak the host will unmute you. Comments will not be accepted in the Q and A Chat function of the Zoom app.
WRITTEN COMMENTS: Public comments may be emailed to
Publ'[email protected] or mailed to the City Clerk's Office. To ensure distribution to the members of the City Council prior to consideration of the agenda, please submit comments no later than one (1) hour prior to the meeting. Those comments, as well as any comments received after, will be distributed to the members of the City Council and will be part of the official public record of this meeting.
If requested, the agenda and backup materials will be made available in appropriate alternative formats to persons with a disability, as required by Section 202 of the Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12132), and the federal rules and regulations adopted in implementation thereof. Any person who requires a disability - related modification or accommodation, to observe and/or offer public comment may request such reasonable modification, accommodation, aid, or service by contacting the City Clerk's Office by telephone at (562) 806-7704 or via email to [email protected] no later than 72 -hours before the scheduled meeting.
The City Council staff report will be available in the City Clerk's Office and posted on the City's website at https://www.bellgardens.org/i-want-to/view-agendas 72 -hours prior to the meeting.
For more information, you may contact the City Clerk's Office located at 7100 Garfield Avenue, Bell Gardens, CA 90201 during regular business hours 7:30 a.m. to 6:00 p.m., Monday through Thursday at (562) 806-7704 or via email to [email protected].
Daisy Gomez
City Clerk
Posted: September 28, 2023
Bell Gardens City Hall
Bell Gardens John Anson Ford Park
Bell Gardens Veterans Park - Ross Hall Auditorium
Bell Gardens Department of Public Works
Daily Journal Corporation (Bell Gardens News Paper) — General Circulation Exhibit 3 23
CITY OF BELL GARDENS
OFFICE OF THE CITY MANAGER
AGENDA REPORT
Item 2.
TO:
FROM:
BY:
SUBJECT:
Honorable Mayor and City Council Members
Michael B. O'Kelly, City Manager
Daisy Gomez, City Clerk
GENERAL MOTION TO WAIVE FULL READING AND APPROVE ORDINANCES BY TITLE ONLY PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 36934 DATE: October 9, 2023
RECOMMENDATION:
It is staff's recommendation that the City Council approve a general motion to waive full reading and approve Ordinances by title only pursuant to California Government Code Section 36934.
BACKGROUND/DISCUSSION:
In order to expedite the conduct of business at Council meetings, California State Law (California Government Code Section 36934) allows Ordinances to be read by title if a majority of the Council supports the motion waiving the full reading. Most California cities adopt a standard motion at the beginning of each meeting in order to effectuate this waiver.
Since most of the Ordinances introduced and adopted consist of multiple pages of technical language, reading by title only allows the Council to eliminate the communication of redundant information and attend to other matters during the meetings. Otherwise, the entire Ordinance language will have to be read in full.
CONCLUSION:
Allowing ordinances to be read by title only, according to California State Law, will expedite the conduct of business at Council Meetings.
FISCAL IMPACT:
No fiscal impact.
APPROVED ELECTRONICALLY BY:
Michael B. O'Kelly, City Manager
Stephanie Vasquez, City Attorney and/or Susie Altamirano, Assistant City Attorney Manuel Carrillo, Director of Finance and Administrative Services 24 CITY OF BELL GARDENS
OFFICE OF THE CITY MANAGER
AGENDA REPORT
Item 3.
TO: Honorable Mayor and City Council Members
FROM: Michael B. O'Kelly, Executive Director
BY: Daisy Gomez, City Clerk
SUBJECT: APPROVAL MINUTES OF SEPTEMBER 25, 2023 CITY /SUCCESSORAGENCYJOINT
MEETINGS
DATE: October 9, 2023
RECOMMENDATION:
It is staff's recommendation that the City Council approve the minutes of the September 25, 2023 City/Successor Agency Joint Meeting.
BACKGROUND/DISCUSSION:
Every City/Successor Agency Joint Meeting the City Clerk documents the actions made by the Agency Members/City Council.
CONCLUSION:
If approved, the minutes of the City/Successor Agency Joint Meetings will be archived in the City Clerk's Office.
FISCAL IMPACT:
No fiscal impact.
ATTACHMENTS:
Exhibit 1 - Minutes of September 25, 2023
APPROVED ELECTRONICALLY BY:
Michael B. O'Kelly, City Manager
Stephanie Vasquez, City Attorney and/or Susie Altamirano, Assistant City Attorney Manuel Carrillo, Director of Finance and Administrative Services 25 CITY OF BELL GARDENS
CITY COUNCIL / SUCCESSOR AGENCY TO THE COMMUNITY
DEVELOPMENT COMMISSION
JOINT MEETING
MONDAY, SEPTEMBER25, 2023, 6:00 PM
MINUTES
LOCATION: CITY COUNCIL CHAMBERS, 7100 GARFIELD AVENUE, BELL GARDENS, CA90201 PUBLIC PARTICIPATION: The members of the public may address the City Council / Agency Members on any item listed on the agenda or on matters which are not listed on the agenda but are within the subject matter jurisdiction of the City Council / Successor Agency. Public comments are limited to three (3) minutes per person for each designated public comment period(s). Public comments for non - agenda items will be limited to a total of 30 minutes. Public comments can be made by any of the following ways:
IN -PERSON: Members of the public can provide in -person comments at the podium in the Council Chamber. The Council Chambers will have seating available for members of the public to attend the meeting in person, subject to capacity limits. Public comments are limited to three (3) minutes for each designated public comment period(s) per speaker, unless a different time is announced by the presiding chair. Speakers who wish to address the City Council / Agency Members should do so by submitting a "Public Comment Card" card by 5:00 p.m. for Closed Session items and by 6:00 p.m. for all other designated public comment periods as listed.
BY TELEPHONE: Phone Number: (669)900-9128 Webinar ID: 813 3236 4343# Passcode: 2021# To address the City Council press *9 to raise your hand then *6 to unmute yourself when instructed.
VIRTUALLY LIVE: Members of the public may participate via Zoom by https://zoom.us/join and entering the Zoom Meeting I D: 813 3236 4343 Passcode: 2021
Comments may also be made via the Zoom app by using the "Raise Hand" feature when it is your turn to speak the host will unmute you. Comments will not be accepted in the QandA Chat function of the zoom app.
WRITTEN COMMENTS: Public comments may be emailed to [email protected] or mailed to: City Clerk's Office, 7100 Garfield Ave., Bell Gardens, CA 90201. To ensure distribution to the members of the City Council / Agency Members prior to consideration of the agenda, please submit comments no later than one (1) hour prior to the meeting. Those comments, as well as any comments received after, will be distributed to the members of the City Council / Successor Agency and will be part of the official public record of this meeting.
For more information, you may contact the City Clerk's office during regular business hours 7:30 a.m. to 6:00 p.m., Monday through Thursday at (562) 806-7704.
PUBLIC HEARING: Public participation will be separately called for the public to provide comments at the time of each public hearing item. Speakers who wish to provide a comment should do so by submitting a "Public Comment Card" to the staff liaison, clerk, prior to the designated public comment period.
Exhibit 1 26
CALL TO ORDER
The Council Members of the City of Bell Gardens City Council/Successor Agency held a Joint Regular meeting on September 25, 2023, in the Council Chambers, 7100 Garfield Avenue, BeII Gardens, CA with Mayor Francis de Leon Sanchez presiding. Mayor Francis de Leon Sanchez called the joint meeting to order at 6:05 p.m.
INVOCATION
The invocation was given by Gustavo Romo, Community Development Director.
PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Girl Scout Brownie Troop #2543.
ROLL CALL OF CITY COUNCIL MEMBERS / SUCCESSOR AGENCY TO THE COMMUNITY
DEVELOPMENT COMMISSION MEMBERS
Present:
Marco Barcena, Agency Member/Council Member
Gabriela Gomez, Agency Member/Council Member
Maria Pulido, Agency Member/Council Member
Jorgel Chavez, Vice Chair/Mayor Pro Tem
Francis De Leon Sanchez, Chair/Mayor
Absent:
None
PRESENTATIONS
• NATIONAL COMMUNITY PLANNING MONTH PROCLAMATION
Councilmember Maria Pulido read the certificate of recognition and presented it to the Community Development Department staff.
• NATIONAL BREAST CANCER AWARENESS MONTH
Mayor Frances de Leon Sanchez read the certificate of recognition. • DOMESTIC VIOLENCE AWARENESS MONTH
Councilmember Marco Barcena read the certificate of recognition and presented it to Norma Yoguez and Evelyn Casimiro, with SPIRITT Family Services.
PUBLIC COMMENTS ON NON -AGENDA ITEMS UNDER THE SUBJECT MATTER
JURISDICTION OF THE CITY COUNCIL / SUCCESSORAGENCY
City Clerk Daisy Gomez announced that there was one written comment received and distributed to the City Council.
Bruce Crow spoke regarding various topics.
Exhibit 1 27
Rogelio Rodriguez spoke regarding various topics.
Ruben Hoyos spoke regarding the "Ponte Las Pilas, Sela!" event.
PUBLIC COMMENTS ON AGENDA ITEMS ONLY
City Clerk Daisy Gomez announced that there were no written comments received.
Bruce Crow spoke regarding item numbers 7 and 17.
Rogelio Rodriguez spoke regarding item number 7.
CITY MANAGER'S REPORT
City Manager Michael O'Kelly provided a brief report.
CONSENT CALENDAR (Item Nos. 1 - 12)
All matters listed under the Consent Calendar are considered to be routine and can be acted on by one roll call vote. There will be no separate discussion of these items unless members of the City Council / Successor Agency request specific items to be removed from the Consent Calendar for separate action.
Items called for separate discussion will be heard as the next order of business.
A motion was made by Councilmember Marco Barcena, seconded by Councilmember Gabriela Gomez to approve Consent Calendar Item Nos. 1 - 12.
The motion carried 5-0 with the following vote for Item Nos. 1 - 12:
AYES: Barcena, Gomez, Pulido, Chavez, De Leon Sanchez
NOES: None
ABSENT: None
ABSTAIN: None
1 GENERAL MOTION TO WAIVE FULL READING AND APPROVE ORDINANCES BY TITLE ONLY PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 36934 In order to expedite the conduct of business at City Council meetings, California State Law (California Government Code Section 36934) allows Ordinances to be read by title if a majority of the legislative body supports the motion to waive the full reading.
Recommendation:
It is staff's recommendation that the City Council approve a general motion to waive full reading and approve Ordinances by title only pursuant to California Government Code Section 36934.
2. APPROVAL MINUTES OF SEPTEMBER 11, 2023 CLOSED SESSION AND CITY /
SUCCESSOR AGENCY JOINT MEETINGS
Approve the minutes of the September 11, 2023 Closed Session and City/Successor Agency Exhibit 1 28
Joint Meetings.
Recommendation:
It is staff's recommendation that the City Council approve the minutes of the September 11, 2023 Closed Session and City/Successor Agency Joint Meeting.
3. WARRANT REGISTERS AND WIRE TRANSFERS
In approving the action of receiving and filing the warrant registers, the official minutes of the Bell Gardens City Council should state that each individual member of the City Council is not voting on, influencing the outcome of, or participating in approving, accepting, receiving or filing any warrant which bears the name of the same council member, or pays for any costs or expenses, or otherwise benefits the same named council member. Each council member will not be participating, influencing or voting on any such warrant bearing their name or which benefits the same named council member, but with that exception is voting in favor of receiving and filing all other warrants contained in this report, unless otherwise noted on the record at the time of the approval of the action required by this report.
Recommendation:
It is staffs recommendation that the City Council receive and file the warrant registers, wire transfers, and net payrolls dated 08/24/23, 08/29/23 and 09/05/23.
4. WARRANT REGISTER SUCCESSOR AGENCY
In approving the action of receiving and filing the warrant registers, the official minutes of the Successor Agency should state that each individual member of the Successor Agency is not voting on, influencing the outcome of, or participating in approving, accepting, receiving or filing any warrant which bears the name of the same Successor Agency Member, or pays for any costs or expenses, or otherwise benefits the same named Successor Agency Member. Each Successor Agency Member will not be participating, influencing or voting on any such warrant bearing their name or which benefits the same named Successor Agency Member, but with that exception is voting in favor of receiving and filing all other warrants contained in this report, unless otherwise noted on the record at the time of the approval of the action required by this report.
Recommendation:
It is staff's recommendation that the Successor Agency Members receive and file the warrant register dated 08/29/23.
5. JULY 2023 TREASURER'S REPORT
The Treasurer's Report is a list of cash, investment portfolio and restricted bond cash held by the City.
Recommendation:
It is recommended that the City Council receive, approve, and file the July 2023 Treasurer's Report.
6. AUGUST 2023 TREASURER'S REPORT
The Treasurer's Report is a list of cash, investment portfolio and restricted bond cash held by the City.
Recommendation:
It is recommended that the City Council receive, approve, and file the August 2023 Treasurer's Exhibit 1 29
Report.
7 SECOND READING OF ORDINANCE NO. 938, EXCEPTIONS TO REQUIRED PARKING Second Reading of Ordinance No. 938 (Parking Exceptions) amending Title 9 (Zoning and Planning Regulations) of the Bell Gardens Municipal Code ("BGMC") to comply with required state legislation and the Bell Gardens General Plan.
Recommendation:
It is staff's recommendation that the City Council waive the full reading and adopt Ordinance No. 938 to comply with required state legislation and Bell Gardens General Plan.
Ordinance No. 938 was adopted.
8. CONSIDERATION OF A RESOLUTION AUTHORIZING ACCEPTANCE OF THE UNITED
STATES FEDERAL COMMUNICATIONS COMMISSION AFFORDABLE CONNECTIVITY
PROGRAM GRANT FUNDING
The Affordable Connectivity Program is a federal government program that helps ensure that eligible households can afford the broadband they need for work, school, healthcare, and more.
Recommendation:
It is staff's recommendation that the City Council by motion adopt a Resolution authorizing acceptance of the United States Federal Communications Commission Broadband Affordable Connectivity Program grant funding.
Resolution No. 2023-74 was approved.
9. ADOPTION OF RESOLUTION ACCEPTING FUNDING FROM THE UNITED WAY OF
GREATER LOS ANGELES EMERGENCY FOOD AND SHELTER PROGRAM (EFSP) GRANT
Adoption of a resolution accepting funding for the United Way Emergency Food and Shelter Program Grant.
Recommendation:
It is staff's recommendation that the City Council by motion adopt the attached resolution accepting funding for the United Way Emergency Food and Shelter Program (EFSP) grant.
Resolution No. 2023-75 was approved.
10. ADOPTION OF RESOLUTION ACCEPTING GRANT FUNDING FROM CALIFORNIA
PHYSICIANS' SERVICE D/B/A BLUE SHIELD OF CALIFORNIA PROMISE HEALTH PLAN
Adoption of a Resolution approving an agreement with Blue Shield of California Recommendation:
It is staff's recommendation that the City Council by motion:
1. Adopt the attached resolution approving an agreement, subject to City Attorney approval as to form, with Blue Shield of California.
Resolution No. 2023-76 was approved.
11. ADOPTION OF RESOLUTION ACCEPTING FUNDING FROM THE LA84 FOUNDATION Exhibit 1 30
Adopt a resolution accepting grant funds from the LA84 Foundation for a Learn to Swim Program.
Recommendation:
It is staff's recommendation that the City Council by motion:
1. Adopt the attached resolution approving an agreement with the LA84 Foundation.
Resolution No. 2023-77 was approved.
12. APPROVAL OF CONTRACT SERVICES AGREEMENT WITH BRIGHTVIEW GOLF MAINTENANCE, INC. FOR BELL GARDENS GOLF COURSE LANDSCAPE AND
MAINTENANCE SERVICES
Adoption of a Resolution and approval of a Contract Services Agreement with Brightview Golf Maintenance, Inc. for a three-year term with the option of two one-year extensions.
Recommendation:
It is staff's recommendation that the City Council by motion:
1. Adopt the attached resolution; and
2. Approve a Contract Services Agreement with Brightview Golf Maintenance, Inc. for the City of BeII Gardens Golf Course landscape and maintenance services for a three-year term with the option of two one-year extensions.
Resolution No. 2023-78 was approved.
DISCUSSION (Item Nos. 13 - 18)
13. LOCAL COMMISSIONS APPOINTMENT LIST
The Local Commissions Appointments List outlines the City of BeII Gardens Commissions and Commissioners. Per the BeII Gardens Municipal Code, City Commissions consist of BeII Gardens residents appointed by each member of the City Council. Council Members may remove commissioners during any regular City Council meeting and may appoint commissioners following 10 working days after the posting of the vacancy notice.
Recommendation:
It is staff's recommendation that the City Council review the Commissions Appointments List and by motion, remove commissioners and/or make appointments to the posted vacancies.
No action was taken.
14. CONSIDERATION OF A PROFESSIONAL SERVICES AGREEMENT WITH GOGOV FOR
THE CITY MOBILE APP
Adoption of resolution and award of professional services agreement with GOGov for the City mobile app.
Recommendation:
It is staff's recommendation that the City Council adopt the attached resolution and authorize the City Manager to execute a Professional Services Agreement with GOGov for the City mobile app, subject to approval by the City Attorney.
Hailes Soto, Assistant to the City Manager provided a presentation.
A motion was made by Mayor Frances de Leon Sanchez, seconded by Councilmember Marco Barcena to approve Resolution No. 2023-79.
Exhibit 1 31
The motion carried 5-0 with the following vote:
AYES: Barcena, Gomez, Pulido, Chavez, De Leon Sanchez.
NOES: None
ABSENT: None
ABSTAIN: None
15. CONSIDERATION AND APPROVAL OF A RESOLUTION TO FORM THE SIDEWALK
VENDING AD HOC COMMITTEE AND MAKE APPOINTMENTS
Consider the adoption of a Resolution to form a new Sidewalk Vending Ad Hoc Committee and appointments for purpose of addressing current and future concerns associated with unpermitted sidewalk vending and compliance options.
Recommendation:
It is staff's recommendation that the City Council approve the attached resolution and appoint two Council members, subject to such direction as may be provided by the City Council.
Gustavo Romo, Director of Community Development, provided a presentation.
A motion was made by Mayor Francis De Leon Sanchez, seconded by Councilmember Marco Barcena to table this item. Resolution No. 2023-80 was not approved.
The motion carried 5-0 with the following vote:
AYES: Barcena, Gomez, Pulido, Chavez, De Leon Sanchez.
NOES: None
ABSENT: None
ABSTAIN: None
16. VACANT AND/OR ABANDONED PROPERTY INVENTORY
City Council directed inventory of all existing vacant/abandoned land and/or buildings for the purpose of determining if a registration program and/or tax measure is warranted.
Recommendation:
It is staff's recommendation that the City Council receive and file this report or provide staff with further direction.
Gustavo Romo, Director of Community Development, provided a presentation.
A motion was made by Mayor Pro Tem Jorgel Chavez, seconded by Mayor Frances de Leon Sanchez to bring back this item with a complete list of all vacant/partially vacant properties within five thousand square feet and identify the timeframe of when that parcel has been underdeveloped.
The motion carried 5-0 with the following vote:
AYES: Barcena, Gomez, Pulido, Chavez, De Leon Sanchez.
NOES: None
ABSENT: None
Exhibit 1 32
ABSTAIN: None
17. RENT STABILIZATION ORDINANCE COST OF SERVICES STUDY City Council -directed Cost Study to implement the City's new Rent Stabilization and Tenant Eviction Protections Ordinance, which was adopted in October of 2022. The Cost Study accounts for all costs associated with administering the ordinance, including staffing, rental registry fees, software, and legal.
Recommendation:
It is staffs recommendation that the City Council select one of the two cost options and associated rental registration fee proposed by the subject Cost Study, accept the Cost Study, and direct staff to move forward with the implementation of the rental registry, proposed staffing, and software solutions, which will result in a revised city fee schedule to be presented to the City Council for adoption at a future meeting as well as future position creations and budget allocations for personnel and software costs.
As a third option, the City Council may direct staff to proceed with the creation of a rent stabilization board as a component of the City's rent stabilization program, which would require an amendment to the Ordinance and an increase to the rental registration fees for either of the cost options selected.
Gustavo Romo, Director of Community Development, and Chu Thai, Partner of Revenue Cost Specialist (RCS), provided a presentation.
A motion was made by Councilmember Marco Barcena, seconded by Mayor Pro Tem Jorgel Chavez to approve the best practices staffing plan for an annual registry fee per unit of $156.
The motion carried 3-2 with the following vote:
AYES: Barcena, Gomez, Chavez.
NOES: Pulido, De Leon Sanchez.
ABSENT: None
ABSTAIN: None
18. INDOOR MURAL ARTWORK APPROVAL FOR VETERANS PARK ADMINISTRATION
BUILDING HALLWAY
Staff is looking for Council's approval for an indoor mural at the Bell Gardens Veterans Park Administration building.
Recommendation:
It is staff's recommendation that the City Council by motion select and approve an art concept for the indoor mural to be painted at Veterans Park Administration Building Hallway, subject to agreement from the Latino Equality Alliance that the City will not be held responsible for any damage to the mural, and that the City reserves the right to remove or modify the mural as it may deem necessary, at any time, without notice.
Elizabeth Nava, Director of Recreation Community Services, provided a presentation.
A motion was made by Councilmember Marco Barcena, seconded by Mayor Pro Tem Jorgel Chavez to Exhibit 1 33
approve option one (1) and return to Council with a final version.
The motion carried 5-0 with the following vote:
AYES: Barcena, Gomez, Pulido, Chavez, De Leon Sanchez.
NOES: None
ABSENT: None
ABSTAIN: None
CITY COUNCIL/ SUCCESSOR AGENCY MEMBER COMMENTS
Members of the Council and Successor Agency made community announcements and comments.
ADJOURNMENT
Mayor Francis de Leon Sanchez adjourned the meeting at 7:51 p.m.
Daisy Gomez, City Clerk
Agenda was posted on September 21, 2023.
Exhibit 1 34
CITY OF BELL GARDENS
OFFICE OF THE CITY MANAGER
AGENDA REPORT
Item4.
TO: Honorable Mayor and City Council Members
FROM: Michael B. O'Kelly, City Manager
BY: Manuel Carrillo, Director of Finance & Administrative Services SUBJECT: WARRANT REGISTERS AND WIRE TRANSFERS
DATE: October 9, 2023
RECOMMENDATION:
It is staff's recommendation that the City Council receive and file the warrant registers, wire transfers, and net payrolls dated 08/30/23, 09/07/23, 09/12/23 and 09/19/23.
BACKGROUND/DISCUSSION:
The attached warrant registers, wire transfers, and net payrolls are for 08/30/23, 09/07/23, 09/12/23 and 09/19/23.
The warrant registers, wire transfers, and net payrolls reflect the financial obligations of the City for the above referenced dates.
CONCLUSION:
If the recommendation to the City Council is approved, then the warrant registers, wire transfers, and net payrolls dated 08/30/23, 09/07/23, 09/12/23 and 09/19/23 will be received and filed.
FISCAL IMPACT:
e cransrer
Ire transfer
arrant re_ ester
nayrolP transfe
08/30/2
09/07/2
09/12/23 187391 187456
85 854
09/07/2
Total Vouche
arrant re Ister 09/12/23
arrant reglister 09/19/23
arrant reglster 09/19/23
arrant re sister 09/19/23
To ank
87457 - 18746
Total ank
87462 - 187566
Total Bank
87567- 18757
Total Voucher
87572 - 18757
$377 844.85
$286,444.41
164 6.93
$829,116.19
$538,745.16
6'7,861835
X18,53
1 ,537x18
X1,211,039.48
1,211,039.48
69,078
69,878.33
$50,015.49
7.18 Total Voucher $50,015 49
Grand Total Vouchers $2,716,631.83
35 ATTACHMENTS:
Exhibit 1- Warrant Register
APPROVED ELECTRONICALLY BY:
Michael B. O'Kelly, City Manager
Stephanie Vasquez, City Attorney and/or Susie Altamirano, Assistant City Attorney Manuel Carrillo, Director of Finance and Administrative Services
Voucher List
09/13/2023 5:15:37PM CITY OF BELL GARDENS
Bank code : common
Voucher
Date Vendor
Page: 1
Invoice PO # Description/Account Amount
1845 -WIRE 8/30/2023 005981 US BANK 2375258
1851 -WIRE 9/7/2023 003359 BANK OF THE WEST Ben593828
1852 -WIRE 9/7/2023 003358 BANK OF THE WEST Ben593832
1853 -WIRE 9/7/2023 001725 CALPERS Ben593830
1854 -WIRE 9/7/2023 009439 MASS MUTUAL Ben593834
187391 9/12/2023 007599 4IMPRINT, INC 11562800
187392 9/12/2023 008604 ACCOUNT 6746022400, U.S. BANK PARS Ben593818 187393 9/12/2023 000148 AMTECH ELEVATOR SERVICES 151401289669 187394 9/12/2023 010840 ANDRION, ALEAH 000000
187395 9/12/2023 010641 ARAMARK 2570194924
187396 9/12/2023 009752 ARTE PRINTING, SAEED RADMEHR 30198 187397 9/12/2023 000284 ASSOC., BELL GARDENS POLICE Ben593822 187398 9/12/2023 010690 AV GRAPHICS PS101698
WATER REF BONDS 04 PRINCIPAL
Total :
FEDERAL INCOME TAX: PAYMENT
Total :
STATE INCOME TAX: PAYMENT
Total :
P/R 09/07/23
MASS MUTUAL: PAYMENT
Total :
Total :
RCS DEPT PROMOTIONAL ITEMS
Total :
PARS: PAYMENT
Total :
PD ELEVATOR MAINT SEPT 2023
Total :
PD JAILER ACADEMY UNIFORM
Total :
RCS AQUATICS SRVCS
PD CITATION BOOKS QTY 77
Total :
Total :
NON -SWORN POA MEMBER -DUES.
Total :
COUNCIL BUS CARDS
377,844.85
377,844.85
90,046.43
90,046.43
28,449.08
28,449.08
143,748.86
143,748.86
24, 200.04
24,200.04
425.89
425.89
6,022.25
6,022.25
232.35
232.35
122.61
122.61
90.62 90.62
999.18
999.18
2,752.50
2,752.50
93.74 Exhibit 1 37
Voucher List
09/13/2023 5:15:37PM CITY OF BELL GARDENS
Bank code : common
Voucher
Date Vendor
Page: 2
Invoice PO # Description/Account Amount
187398 9/12/2023 010690 010690 AV GRAPHICS (Continued)
Total : 93.74
187399 9/12/2023 004626 BANKCARD CENTER 2050-AUG23 FA BACKCARD EXPENSES AUG202 29,259.79 Total : 29,259.79
187400 9/12/2023 009389 BRIGHTVIEW GOLF MAINTENANCE 8589273 05486 RCS GC MAINT SEPT 13,000.00 Total : 13,000.00
187401 9/12/2023 005910 BRIGHTVIEW LANDSCAPE SRVCS INC 8559750 05487 RCS SP CNTR LANDSCAPE SEPT 11 6,754.65 Total : 6,754.65
187402 9/12/2023 000313 BRITE WHITE, ELISEO RODRIGUEZ 25635 PD UNIT#240 TIRES,MOUNT, BALA 980.00 25636 PD UNIT #240 FRONT WHEEL,ALIG 370.00
Total : 1,350.00
187403 9/12/2023 001775 CALPERS FISCAL SERVICES DIV. 100000017250608 FA GASB 68 REPORTS/SCHEDULE 2,100.00 Total : 2,100.00
187404 9/12/2023 003938 CCAC 300002550 CCL CCAC MEMBER REGIST D.GOI 250.00 Total: 250.00
187405 9/12/2023 010839 CHAMO FRUIT, URBANO ANTILLON JR. 5866 RCS SR CTR FIESTAS PATRIAS 9/1 305.00 Total : 305.00
187406 9/12/2023 008611 CHAVEZ, JORGEL CCCA 2023FALLSUh CA CONTRACT CITIES 23 9/8-10 RE 682.68 Total : 682.68
187407 9/12/2023 009417 CINTAS CORPORATION 5167343455 PW FIRSTAID/MEDICA KIT SRVC P 814.33 Total : 814.33
187408 9/12/2023 010396 CURIEL, DOMINGO 09162023 05526 RCS FIESTAS PATRIAS LIVE MUSIC 4,000.00 Total : 4,000.00
187409 9/12/2023 010286 CWE 23339 05406 PW ADDITIONAL ENGINEERING SU 15,991.74 Total : 15,991.74
187410 9/12/2023 004588 DAILY JOURNAL CORPORATION 1124142401 CD PUBLICATIONS 945.00 B3724721 ORD SUMMARY REAR YARD REQ 215.00
Exhibit 1 38
Voucher List
09/13/2023 5:15:37PM CITY OF BELL GARDENS
Page: 3
Bank code : common
Voucher Date Vendor Invoice PO # Description/Account Amount 187410 9/12/2023 004588 004588 DAILY JOURNAL CORPORAL (Continued) Total : 1,160.00 187411 9/12/2023 004807 DAPEER,ROSENBLIT & LITVAK 21776 CD LEGAL MUNI CODE 7/2023 1,969.75 21777 PD LEGAL 7/2023 1,380.83
Total : 3,350.58
187412 9/12/2023 003917 DIAL COMMUNICATIONS 52669 PW 2 WAY RADIO CITY VEH 579.26 52716 PW SC 2201 2 WAY RADIO 607.59
52717 PW SC3 2 WAY VEH RADIO 607.59
52718 PW SC 4 2 WAY VEH RADIO 607.59
Total : 2,402.03
187413 9/12/2023 008668 DIAMOND CLEANING SERVICES, DORA G chbg08013 FA CLEANING SRVCS AUG 2023 100.00 Total : 100.00
187414 9/12/2023 008098 DIRECTV, INC. 057628772X230820 RCS GC SRVCS 8/19-9/18 101.24 Total : 101.24
187415 9/12/2023 000713 DOWNEY VENDORS 18743 CD COFFEE SUPPLIES 132.00 Total : 132.00
187416 9/12/2023 008258 ECOFERT, INC 5712 PW FIELD FERTIGATION AUG 724.00 Total: 724.00
187417 9/12/2023 000775 ENTENMANN ROVIN CO 017588IN PD RETIERED FLAT BADGE CHIEF 136.97 0175946IN PD DOME BADGE REPAIR OFC NE 49.97
Total : 186.94
187418 9/12/2023 006521 FRANCHISE TAX BOARD Ben593824 GARNISHMENT: PAYMENT 1,145.05 Total : 1,145.05
187419 9/12/2023 004594 FUN EXPRESS 72602774201 RCS SR CTR PRGM SUPPLIES 45.13 72602774202 RCS SR CTR OFFICE SUPPLIES 37.47
72604271601 RCS KARAOKE DAY EVENT 68.92
72604285401 RCS STAR PRGM 9/22 EVENT 136.50
742604279701 RCS FIESTAS PATRIAS 9/15 49.34
Total: 337.36
187420 9/12/2023 006112 GALLS LLC 025406750 PD UNIFORM OFC DIAZ 377.08 Exhibit 1 39
Voucher List
09/13/2023 5:15:37PM CITY OF BELL GARDENS
Page: 4
Bank code : common
Voucher
Date Vendor
Invoice PO # Description/Account Amount
187420 9/12/2023 006112 GALLS LLC (Continued)
025406761 PD UNIFORM OFFICER DIAZ 221.28
Total : 598.36
187421 9/12/2023 007015 HARRAHS RESORT SO. CALIFORNIA 854752 RCS SR REFUNDABL DEP FOR TR/ 600.00 Total : 600.00
187422 9/12/2023 007015 HARRAHS RESORT SO. CALIFORNIA 854889 RCS SR NONREFUNDABLE CASIN( 50.00 Total : 50.00
187423 9/12/2023 002607 HERC RENTALS INC. 33923528001 RCS SUMMER MOVIE #4 715.36 Total : 715.36
187424 9/12/2023 001025 HOME DEPOT 7513676 CD TAPE MEASURES 72.53 Total : 72.53
187425 9/12/2023 009566 HYDRO POINT DATA SYSTEMS INC. 146315 RCS RENEWAL SUBSCRIP SRVC 498.00 Total : 498.00
187426 9/12/2023 009579 J THAYER COMPANY LLC 16593960 PW OFC SUPPLIES 47.59 Total : 47.59
187427 9/12/2023 010284 JOHN L. HUNTER & ASSOC., INC. BG1 FPP12307 05407 PW ADDTL PROJ& CONST MANAGE 39,350.00 Total : 39,350.00
187428 9/12/2023 006145 LAN WAN ENTERPRISE, INC. 74396 05462 PD MAINT CONTRACT 8/21 -24TH 4,800.00 Total : 4,800.00
187429 9/12/2023 007252 LEAF 15235982 RCS HP L365 COPIER SYSTEM 388.97 Total : 388.97
187430 9/12/2023 010017 LEFTA SYSTEMS INV002223 PD ANNUAL SUBSCRIP SOTFWARE 2,057.15 Total : 2,057.15
187431 9/12/2023 001318 LOOMIS 13302865 FA ARMORED SRVCS SEPT 2023 239.95 Total : 239.95
187432 9/12/2023 009542 MARTINEZ AGUILAR, XIOMARA C. 1014518.002 RCS SHELTER DEP REFUND 8/26 125.00 Exhibit 1 40
Voucher List
09/13/2023 5:15:37PM CITY OF BELL GARDENS
Page: 5
Bank code : common
Voucher Date Vendor
Invoice PO # Description/Account Amount
187432 9/12/2023 009542 009542 MARTINEZAGUILAR, XIOMP (Continued) 187433 9/12/2023 006285 MARTINEZ, LAURA AUG2023
187434 9/12/2023 010759 MEAL KIT SUPPLY, LLC 38218
187435 9/12/2023 001491 MOBILE MINI INC. 9018655910
187436 9/12/2023 001552 NADA BUS INC. 51487
187437 9/12/2023 001562 NATIONAL CONSTRUCTION RENTALS 7115293 187438 9/12/2023 010576 ORTIZ, JOSE C. J082123
187439 9/12/2023 007668 PACIFIC TELEMANAGEMENT SRVCS 2109522LF 2110883
187440 9/12/2023 008044 PAL PROGRAM
Ben593820
187441 9/12/2023 006904 PIONEER MANUFACTURING COMPANY inv896880 187442 9/12/2023 007759 PLS, ARTURO H ADORNO,
Total : 125.00
TRNG MILEAGE REIM 8/24 -25TH 98.16
Total :: 98.16
RCS EFSP FOOD PANTRY MEALS
Total :
PD CONTRACT SRVCS 8/24-9/20
Total :
793.76
793.76
78.28 78.28
05527 RCS TRANSPORTAION FOR YOUTI 1,430.00
Total : 1,430.00
PD STRINGER POLE 8/17-9/13
Total :
42.45 42.45
RCS YTH SOFTBALL UPIRE 8/21-9/. 200.00
Total : 200.00
PD PUBLIC PAY TELEPHONE LATE
PD PUBLIC PAY TELEPHONE SEPT
Total :
8.59 85.87
94.46 PAL PROGRAM: PAYMENT 225.00
Total : 225.00
RCS SPRT CTR FIELD PAINT 751.91
Total : 751.91
020 05528 RCS FIESTAS PATRIAS SOUND AN( 9,000.00
Total : 9,000.00
187443 9/12/2023 010552 POLYGRAPH LLC, HEARD'S INVESTIGATI( 8235A PD POLYGRAPHS 4
8235B PD POLYGRAPHS 3
187444 9/12/2023 006189 PROFORCE LAW ENFORCEMENT 526867 526875
Total :
800.00
600.00
1,400.00
PD 9 TASER BATTERIES 946.08
PD TASER CARTRIDGES 963.43
Exhibit 1 41
Voucher List
09/13/2023 5:15:37PM CITY OF BELL GARDENS
Page: 6
Bank code : common
Voucher
187444
187445
187446
187447
187448
187449
187450
187451
Date Vendor
Invoice PO # Description/Account Amount
9/12/2023 006189 006189 PROFORCE LAW ENFORCE (Continued) 9/12/2023 009820 PROSEGUR SERVICES GROUP, INC. 680219
9/12/2023 008858 PULIDO, MARIA
ICASUMMER2023
9/12/2023 004661 QUILL CORPORATION 34061540
9/12/2023 007642 SKYLINE SAFETY & SUPPLY, PATRICIA SC 7811 9/12/2023 002105 SPARKLETTS 9232598090223
9/12/2023 000594 STATE DISBURSEMENT UNIT Ben593826
9/12/2023 002169 SUPER A FOODS 0935-082823
1394
5093
8714
8826
187452 9/12/2023 010634 ULINE, INC. 167521221
187453 9/12/2023 005879 UNITED SITE SERVICES INV01990415 187454 9/12/2023 010353 VARGAS CERVANTES, MIRIAM 014
187455 9/12/2023 006130 VERIZON WIRELESS 9942388739
Total : 1,909.51
RCS SPRTS CTR SEC 8/21 -27TH 1,599.92
Total : 1,599.92
ICA SUMMER SEMINAR 120.52
Total: 120.52
PD OFC SUPPLIES DEPT TONER 300.93
Total : 300.93
PW CUSTODIAL
CD WATER SRVC 8/23
GARNISHMENT: PAYMENT
452.13
Total : 452.13
92.39 Total : 92.39
1,005.22
Total : 1,005.22
RCS STAR KARAOKE EVENT 9/1
RCS STAR SUMMER LUAU FOOD 8,
RCS NYC AFTER SCHOOL SUPPLIE
RCS EMPLOYEE WELLNESS FAIR
RCS STAR LUAU EVENT 8/25
Total :
RCS STAR PRGM SCIENCE DAY 8/'
Total :
RCS PORTABLE RESTROOMS 9/14
Total :
RCS FIESTAS PATRIAS PATRIOTIC
Total :
CD CELL SRVC 7/20-8/19
Total :
17.05 87.53
51.64 9.89
88.65 254.76
68.12 68.12
159.10
159.10
31.35 31.35
203.85
203.85
Exhibit 1 42
Voucher List
09/13/2023 5:15:37PM CITY OF BELL GARDENS
Page: 7
Bank code : common
Voucher
Date Vendor
187456 9/12/2023 009769 WEINRICH, MICHAEL
71 Vouchers for bank code : common
TRANSFER 9!7/2023 BANK OF THE WEST
71 Vouchers in this report
Invoice PO # Description/Account Amount
AUG2023
P/R
PD TRNG MILEAGE REIM 85.67
Total : 85.67
Bank total : 829,116.19
NET PAYROLL 538,745.16
Total vouchers : 1,367,861.35
Exhibit 1 43
Voucher List
09/13/2023 5:26:09PM CITY OF BELL GARDENS
Page: 1
Bank code : common
Voucher Date Vendor
Invoice PO # Description/Account Amount
187457 9/12/2023 002092 GOLDEN STATE WATER COMPANY 57710200007-06142:
PW 6547 EASTERN
57710200007-07172: PW 6547 EASTERN
187458 9/12/2023 010748 QUESTAR SOLUTIONS, LLC, CIO BANK O1 5316366 187459 9/12/2023 002129 STANDARD INSURANCE CO. JUNE 2023 187460 9/12/2023 002129 STANDARD INSURANCE CO. MAY2023
187461 9/12/2023 002383 VORTEX INDUSTRIES INC. 031679552 Total :
71.27 71.27
142.54
PW 55 GALLONS BLUE DRUMS OIL 766.50
Total : 766.50
STANDARD LIFE & ADD 6/2023 8,410.11
Total : 8,410.11
STANDARD LIFE&ADD 5/2023 8,305.46
Total : 8,305.46
PW REPAIRS TO HORIZONTAL
Total :
5 Vouchers for bank code : common Bank total :
5 Vouchers in this report
912.57
912.57
18,537.18
Total vouchers : 18,537.18
Exhibit 1 44
Voucher List
09/20/2023 12:06:54PM CITY OF BELL GARDENS
Bank code : common
Voucher
187462
Date Vendor
9/19/2023 000015 AY NURSERY
Invoice
174563
187463 9/19/2023 010275 ALADDIN LOCK & KEY, BENITO ROBERTC 33360 33370
187464 9/19/2023 000098 ALIN PARTY SUPPLY
187465 9/19/2023 000106 ALL CITY MANAGEMENT SERVICES
187466 9/19/2023 010693 ALVARADO, HUGO ISAIAS
187467 9/19/2023 010833 AMAZON CAPITAL SERVICES, INC.
187468
9/19/2023 002946 AMERICAN PLANNING ASSOCIATION
187469 9/19/2023 004556 AMERICAN WELDING, RAMIRO PACHECC 187470
9/19/2023 000148 AMTECH ELEVATOR SERVICES
187471 9/19/2023 000150 ANAYA'S SERVICE CENTER
187472 9/19/2023 000301 ANTHEM BLUE CROSS
PO #
Description/Account
PW TREE STAKES
Total :
05533 PW NEW -KEYS FOR FORD PARK S
PW REKEYED CYLINDER
Total :
532531 RCS STAR FIESTAS PATRIAS DECC
Total :
87108 05473 PW CROSSING GUARD AUG 6-23R
Total :
90523 PW TRAFFIC/SAFETY COMM MTG
Total :
1GJ7TQXVXFTP
1 PXVL77C6QNK
1X3TR/74R4QC
1 YXQFVGRT4XW
179674202310
15560
151401290116
38688
5982
000296051292
001540086G
RCS OFFICE SUPPLIES
RCS OFFICE SUPPLIES
RCS OFFICE SUPPLIES
RCS 9/16 FUN ZONE SUPPLIES
Total
CD APAANNUAUCHAPT/CAL MEME
Total :
PW BANNER POLES
Total :
PW MNTHLY SRVC FEE SEPT 2023
Total :
PW VEH REPAIR P171
PW VEH REPAIR VOLT BATTERY
Total :
RET HEALTH INS SEPT 23RD
FA HEALTH INS SEPT 2023
Page: 1
Amount
130.50
130.50
1,106.35
263.33
1,369.68
89.08 89.08
8,260.63
8,260.63
100.00
100.00
30.85 8.39
85.35 141.69
266.28
628.00
628.00
940.00
940.00
224.92
224.92
411.16
260.13
671.29
16, 023.41
205,305.44
Exhibit 1
45 187484
Voucher List
09/20/2023 12:06:54PM CITY OF BELL GARDENS
Bank code : common
Voucher
Date Vendor
Invoice
PO #
Description/Account
Page: 2
Amount
187472 9/19/2023 000301 000301 ANTHEM BLUE CROSS (Continued) 187473
9/19/2023 010641 ARAMARK
187474 9/19/2023 006800 ATHENS SERVICES
187475 9/19/2023 010231 BARRERA, CARLOS
187476 9/19/2023 010845 BAUTISTA, JARED
187477 9/19/2023 006666 BEITH, TORBEN
187478 9/19/2023 000302 BLUE DIAMOND MATERIALS
187479 9/19/2023 000313 BRITE WHITE, ELISEO RODRIGUEZ
187480 9/19/2023 008203 C.A.T. SPECIALTIES, INC
187481 9/19/2023 008114 CALIFORNIA CLEANING SUPPLIES
187482 9/19/2023 000452 CENTRAL BASIN MWD
187483 9/19/2023 001447 CHARTER COMMUNICATIONS
9/19/2023 001447 CHARTER COMMUNICATIONS
2570196965
923121115
90523
090723.1
20230912
3300787
25638
39347
39349
39481
39482
56679
BGJUL23
0689734091523
0672896091723
RCS AQUATICS SRVCS
Total : 221,328.85
Total :
90.62 90.62
05490 PW RESID TRASH SERVICE SEPT 307,879.22
Total : 307,879.22
PW TRAFFIC/SAFETY COMM SEPT
Total :
100.00
100.00
RCS 2ND PL BG SENIOR SCHOLAR 2,000.00
Total :
05460 PD ADMIN SUPP SRVCS 8/29-9/11/2
Total :
PW CONCRETE/ASPHALT DUMP FE
Total :
PW NEW TIRES SANDBLASTER UN
Total :
PW STAFF UNIFORMS
PW STAFF UNIFORMS
PW STAFF UNIFORMS
PW STAFF UNIFORMS
PW MOP BUCKETS
Total :
Total :
PW MNTHLY WATER SRVC JULY 2C
Total :
ITFDPK WIFI 9/15-10/14
Total :
2,000.00
1,595.00
1,595.00
400.00
400.00
260.49
260.49
998.29
992.25
992.25
992.25
3,975.04
606.32
606.32
121,562.81
121,562.81
1,150.00
1,150.00
IT PUBLIC WORKS WIFI 9/17/10/16 309.98
Exhibit 1 46
Voucher List
09/20/2023 12:06:54PM CITY OF BELL G ,' DENS
Page: 3
Bank code : common
Voucher
187484
187485
187486
187487
187488
187489
187490
187491
187492
187493
187494
Date Vendor
Invoice
9/19/2023 001447 001447 CHARTER COMMUNICATION (Continued) 9/19/2023 001447 CHARTER COMMUNICATIONS
9/19/2023 001447 CHARTER COMMUNICATIONS
9/19/2023 001447 CHARTER COMMUNICATIONS
9/19/2023 001447 CHARTER COMMUNICATIONS
9/19/2023 001447 CHARTER COMMUNICATIONS
9/19/2023 001447 CHARTER COMMUNICATIONS
9/19/2023 005654 CSULB FOUNDATION
9/19/2023 000659 DELTA DENTAL OF CALIFORNIA
0646155091523
06461140991423
0646130091523
0010037082523
0685153091723
3506081623
SEPT 2023
BE005660407
9/19/2023 000658 DELTA DENTAL INSURANCE COMPANY BE005657822 9/19/2023 003917 DIAL COMMUNICATIONS
PO #
Description/Account
IT YTH CNTR WIFI 9/15-10/14
Total :
Total :
IT SENIOR CNTR WIFI 9/14-10/13
Total :
IT VET PARK WIFI 9/15-10/14
Total :
PD CONTRACT SRVC 8/16-9/15
Total :
IT CITY HALL WIFI 9/17-10/16
CABLE SRVCS CH AUG 2023
Total :
Total :
PD TRNG MISCALCU REMAINING B
Total :
Total :
Total :
FA DENTAL INS SEPT 2023
FA DENTAL INS SEPT 2023
52649 PW 5 AIRTIME MT WILSON AUG20';
52709 PW 5 AIRTIME MT. WILSON
52724 PW 2 WAY RADIO INSTALL SC3
52725 PW 2 WAY RADIO INSTALLATION
Total :
187495 9/19/2023 010331 DIMEX PROFESSIONAL, ISRAEL HERNAN 1231 1232
1233
1234
RCS CFSC JANITORIAL SRVC 8/5-3
RCS FP JANITORIAL SRVCS 8/5-30'
RCS SPRT CNTR JANITORIAL SRVC
RCS SR CTR JANITOIRAL SRVCS 8
Amount
309.98
309.98
309.98
309.98
309.98
309.98
309.98
281.18
281.18
199.98
199.98
121.03
121.03
100.00
100.00
17,053.54
17,053.54
1,428.86
1,428.86
190.00
190.00
789.31
529.05
1,698.36
360.00
200.00
375.00
170.00
Exhibit 1
47 Voucher List
09/20/2023 12:06:54PM CITY OF BELL GARDENS
Page: 4
Bank code : common
Voucher
Date Vendor
Invoice PO # Description/Account Amount
187495 9/19/2023 010331 DIMEX PROFESSIONAL, ISRAEL HERNAN (Continued) 1235 RCS GC JANITORIAL SRVCS 8/5-30 170.00
1236 RCS NYC JANITORIAL SRVCS 8/5-3 170.00
Total : 1,445.00
187496 9/19/2023 008493 DUNN EDWARDS CORPORATION 2009A15976 05523 PW GRAFFITI PAINT AND SUPPLIE: 2,120.96 2009A16108 05523 PW GRAFFITI PAINT AND SUPPLIE: 198.05
Total : 2,319.01
187497 9/19/2023 008128 ECONOLITE SYSTEMS 41236 05509 PW TRAFFIC SIGNAL MAINT 10,805.75 41372 05509 PW EXTRAORD INSTALL RADAR SI 22,490.00
Total : 33,295.75
187498 9/19/2023 006944 ENTERPRISE FLEET MANAGEMENT FBN4842514 05461 PD MNTHLY LEASE PD& DETECTIV 2,833.83 Total : 2,833.83
187499 9/19/2023 006424 FERNANDO'S HARDWARE & LUMBER 473 PW CONCRETE MIX QTY 7 53.95 487 PW CONCRETE MIX QTY 3 23.12
91204 PW WATER FOUNTAIN REPAIR 12.11
91221 PW 35-90LBS CEMENT BAGS 269.73
Total : 358.91
187500 9/19/2023 004594 FUN EXPRESS 72613158901 RCS AFTERSCHOOL PRGM 72.39 Total : 72.39
187501 9/19/2023 006112 GALLS LLC 025515726 PD UNIFORM EXPLORER D.SANCI- 30.83 Total : 30.83
187502 9/19/2023 006100 GARCIA, MARIA DEL ROSARIO 190725 RCS AEROBICS CLASS VIDA SANA 920.00 Total : 920.00
187503 9/19/2023 009734 GOLD COAST K9, K-9 SERVICES LLC BGPD187 PD K9 FOOD 75.08 Total : 75.08
187504 9/19/2023 002092 GOLDEN STATE WATER COMPANY 21744100005-08282: PW 6221 FLORENCE AVE. 1,426.85 22744100003-08232: PW 8327 GARFIELD AVE. 336.69
24412200008-0823Z PW 8000 SCOUT IRRIG 62.26
31145100009-08232; PW 8000 SCOUT IRRIG 1,676.21
32916100004-08222: PW 8000 SCOUT 6 IRRIG 11,938.35
Exhibit 1 48
Voucher List
09/20/2023 12:06:54PM CITY OF BELL GARDENS
Bank code : common
Voucher
Date Vendor
Invoice
187504 9/19/2023 002092 GOLDEN STATE WATER COMPANY (Continued) 40584200006-08182:
49226200001-08232:
49644100007-08232:
50744100004-08232:
52151200004-08222:
52744100000-08232:
56810300006-0822Z
56943418386-08212:
57319200002-08232:
59644100006-08252:
65551868949-07202:
65551868949-08172:
76132100009-08222:
80824200002-08222:
81145100004=08232
81916100001-08222:
84655100000-08172:
187505 9/19/2023 006097 GOLDEN WEST COLLEGE RCJTC
187506 9/19/2023 000938 GRAINGER
187507 9/19/2023 009785 GREENTECH LANDSCAPE INC.
187508 9/19/2023 010202 HEREDIA, DAVID E.
187509 9/19/2023 008072 HF & H CONSULTANTS, LLC
187510 9/19/2023 001025 HOME DEPOT
AUG2023
9809867261
56431
90523
9720465
005229/4023683
006485/3013922
008189/2081417
029364/1013934
Description/Account
Page: 5
Amount
PW 8323 GARFIELD 70.42
PW 8000 SCOUT BTHROOMS 1,199.39
PW CLARA ST/IN SIDEWK IRRIG 74.07
PW NEC AJAX& FLORENCE IRRIG 519.19
PW 5856 LUDELL ST 1 OF 2 241.02
PW GARFEILD AVE. & EASTERN Ab 277.58
PW 8341 EASTERN IRRIG 169.02
PW 6626 MARLOW 38.22
PW GAGE AVE.& SPECHT 206.67
PW EASTERN 5/O LIVE OAK IRRIG 230.84
PW 7800 SCOUT IRRIG 2,665.60
PW 7800 SCOUT IRRIG 2,627.17
PW 5856 LUDELL ST 2 OF 2 7.10
PW 8321 JABONERIA RD 274.92
PW 8327 GARFIELD AVE. 39.70
PW 8000 SCOUT IRRIG 7,609.32
PW 5619 CLARA ST IRRIG 188.77
Total: 31,879.36
PD TRNG SWAT 9/12 -23RD TUITIOls 702.00
Total : 702.00
05524 PW ELKAY DRINKING FOUNTAIN W 1,454.52
Total : 1,454.52
05510 PW CITYWIDE LANDSCAPE MAINZ 9,607.83
Total : 9,607.83
PW TRAFFIC/SAFETY COMM MTG : 100.00
Total : 100.00
05535 PW RESID WASTE CONSUL JULY 8,338.00
Total : 8,338.00
PW SM EQUIP /TOOLS 189.09
PW FACILITIES SUPPLIES 437.09
PW ST SUPPLIES 88.80
PW SUPPLIES 200.82
Exhibit 1 49
Voucher List
09/20/2023 12:06:54PM CITY OF BELL GARDENS
Page: 6
Bank code : common
Voucher Date Vendor
187510
9/19/2023 001025 HOME DEPOT
Invoice PO # Description/Account Amount
(Continued)
030370/540313
030711/0013475
030915/0022897
187511 9/19/2023 008722 HOPE & FAITH MINISTRIES 1015119002 187512 9/19/2023 009818 IBE DIGITAL 458740
187513 9/19/2023 005177 INFRASTRUCTURE ENGINEERS 28710
28766
28767
28768
28775
28777
28778
PW SM EQUIP /TOOLS
PW STREET SUPPLIES
PW FACILITIES SUPPLIES
Total :
RCS SHELTER DEP REFUND 9/2
Total :
131.89
413.64
442.08
1,903.41
125.00
125.00
PD COPIER LEAST 8/15-9/14/23 336.71
Total : 336.71
CD PL&DEVT ENG FEES 7/31/23 1,192.00
05347 PW INDUSTRIAUCOMM FACILITIES 10,360.30
05298 PW FORD PARK MAINTENANCE YA 2,971.25
05353 PW VARIOUS RESID ST IMPROV Al 13,075.00
05299 PW ATP CYCLE 5 CITYWIDE COMP 3,067.50
05451 PW CITYWIDE STRIPING PROJECT 1,486.60
PW NPDES MANAGMNT PRGM AUC 84.00
Total : 32,236.65
187514 9/19/2023 008730 JHM SUPPLY 900373 PW IRRIG SUPPLIES PARTS 579.35 Total : 579.35
187515 9/19/2023 010284 JOHN L. HUNTER & ASSOC., INC. BG1 FPP12306 PW PROJ MANAGMNT CONST FDP 49,182.50 Total : 49,182.50
187516 9/19/2023 004019 KAISER FOUNDATION HEALTH PLAN SEPT 2023 FA HEALTH INS SEPT 122,501.35 Total : 122,501.35
187517 9/19/2023 009397 KRAMER, KELLEN 090723 PD TRNG MILEAGE REIM 9/6/23 74.61 Total : 74.61
187518 9/19/2023 010498 LACHER, DONALD CHISTOPHER BG2023006 05506 PD APPLICANT BACKGRND INVES" 1,150.00 BG2023008 05506 PD PD APPLICANT BACKGRND INV 1,150.00
Total : 2,300.00
187519 9/19/2023 006145 LAN WAN ENTERPRISE, INC. 74402 05462 PD MAINT 8/28 -31ST 4,800.00 Exhibit 1 50
Voucher List
09/20/2023 12:06:54PM CITY OF BELL GARDENS
Bank code : common
Voucher
Date Vendor
Invoice
187519 9/19/2023 006145 006145 LAN WAN ENTERPRISE, INC (Continued) 187520 9/19/2023 008684 LGP EQUIPMENT RENTALS INC 128080 187521
9/19/2023 001695 LIBERTY UTILITIES CORP
PO # Description/Account
PW 6508 TOLER AVE.
128099 PW 5855 WATCHER ST
200006892000
200006892059-0830:
200006892125
187522 9/19/2023 010842 LOPEZ MONTELLANO, ELSA J. 1014208002 187523 9/19/2023 003249 LUBRANI, SAMANTHA L. CC23007
CC23008
187524 9/19/2023 006556 MAJESTIC TROPHY & AWARD 023712
187525 9/19/2023 010554 MEDICO HEALTHCARE LINEN SRVCS. 20876928 187526 9/19/2023 003123 MENDOZAS LAWNMOWER'S, ROSALINDF 4771 4772
4773
187527 9/19/2023 001474 MIDTOWN PLUMBING, INC. IN00060128 187528 9/19/2023 001491 MOBILE MINI INC. 9018704712
187529 9/19/2023 008796 MONROY, MONICA LISBETH 00019
187530 9/19/2023 001569 NATIONAL LEAGUE OF CITIES 183684 PW 6218 EASTERN AVE.
PW IRRIG GAGE/PERRY RD
PW 6662 LOVELAND ST
Total :
Total :
Total :
RCS SHELTER DEP REFUND 9/2
Total :
CCL CC MTG 7/24/23
CCL-CC MTGS AUGUST
Total :
PW PERPETUAL PLATE ENGRAVE[
Total :
PD JAIL UNIFORM/LINEN CLEANINI
Total :
PW NEW CHAINS FOR CHAINSAW:
PW EQUIPMENT REPAIRS
PW EQUIPMNT REPAIRS
Total :
PW DOWNSTAIRS RESTROOMS
Total :
PD CONTRACT SRVCS
Total :
RCS AUG BALLET FOLKLORICO
Total :
MEMBERSHIP DUES 9/23-8/2024
Page: 7
Amount
4,800.00
636.58
636.58
1,273.16
416.55
1,804.03
1,717.20
3,937.78
125.00
125.00
550.00
1,100.00
1,650.00
8.80 8.80
52.05 52.05
49.62 310.91
276.73
637.26
738.55
738.55
187.20
187.20
230.00
230.00
4,229.00
Exhibit 1 51
Voucher List
09/20/2023 12:06:54PM CITY OF BELL GARDENS
Bank code : common
Voucher
Date Vendor Invoice
187530 9/19/2023 001569 001569 NATIONAL LEAGUE OF CITII (Continued) 187531
9/19/2023 001576 NATIONWIDE ENVIRONMENTAL SRVCS 33440
187532 9/19/2023 010561 NWESTCO,LLC
INV468796
187533 9/19/2023 002293 OF SO. CALIF., UNDERGRND SRVC ALER 23240485 820230053
187534 9/19/2023 004060 ORNELAS, GERARDO 080323 TRNG REIM! 187535 9/19/2023 001697 PARKHOUSE TIRE, INC. 1010942320 Description/Account
Total :
05474 PW STREET SWEEPING SEPT
Total :
187536 9/19/2023 007292 PARKING CO. OF AMERICA, PCAM,LLC INVM0017964 -05476 187537 9/19/2023 001707 PDQ RENTAL CENTER
187538 9/19/2023 010687 PEREZ, STEPHANIE
W16910
2023.8.9
187539 9/19/2023 010812 PLUMBING HEATING & NC, NORWALK LA 328574CHRIS 328577CHRIS
187540 9/19/2023 010841 POLICE ASSOC., LA COUNTY CANINE 09/25 -28TH 187541 9/19/2023 009820 PROSEGUR SERVICES GROUP, INC. 680738 187542 9/19/2023 004930 QUINN COMPANY WO370169497
PW AUG 2023 DO INSPECTION
Total :
PW CALIFORNIA STATE FEE REG C
PW UNDERGRND TICKET INSPAU(
Total :
PD -LODGING 3 NIGHTS OCT 5 -7TH
Total :
PW DISPOSAL/ENVIROMENTAL FEI
Total :
PW DIAL ARIDE
PW TOW HITCH FOR SC3
Total :
Total :
RCS SR CITIZEN COMM AUG MTG
Total :
PW EMERGENCY CALL OUT BGPD
PW EMERGENCY CALL OUT BGPD
Total :
PD TRNG ADV K9 9/25 -28TH
RCS SPRT GTR SEC 8/28-9/3
Total :
Total :
05544 PW REPAIR/SERVICES - EMERGEN
Page: 8
Amount
4,229.00
17, 737.46
17,737.46
120.00
120.00
41.25 92.25
133.50
632.70
632.70
129.50
129.50
73,469.01
73,469.01
283.84
283.84
100.00
100.00
243.00
223.00
466.00
400.00
400.00
1,599.92
1,599.92
5,814.28
Exhibit 1 52
Voucher List
09/20/2023 12:06:54PM CITY OF BELL GARDENS
Page: 9
Bank code : common
Voucher Date Vendor
Invoice PO # Description/Account Amount
187542 9/19/2023 004930 004930 QUINN COMPANY (Continued) 187543 9/19/2023 000186 READYREFRESH BY NESTLE
03H0033108044
03H0033 108135
13H0022262984
Total : 5,814.28
PD WATER SRVC 7/11-8/10
PD WATER SRVC 7/11-8/10/23
PD WATER SRVC 7/21-8/20/23
Total :
75.11 75.11
115.01
265.23
187544 9/19/2023 003631 RELX, INC. 140988520230831 PD ADV SEARCHES SOFTWARE 50.50 Total: 50.50
187545 9/19/2023 010817 REVENUE & COST SPECIALIST, LLC 9159 05518 CD CONSUL RENT STABILIZATION 10,520.00 Total : 10,520.00
187546 9/19/2023 008332 RICARDO EXTERMINATOR 0138130 PW EXTERMIN SRVC 6662 LOVELP 170.00 0138131 PW EXTERMINATOR SRVC 6423 FL 100.00
0138133 PW EXTERMIN SRVC 8027 GARFIE 100.00
Total : 370.00
187547 9/19/2023 010685 RIVERA, DIANA
187548 9/19/2023 001885 ROADLINE PRODUCTS,INC
2023.8.9 RCS SR CITIZEN COMM AUG MTG 100.00
Total : 100.00
18408 PW T171 MAINT 964.69
18413 PW T171 MAINT 972.96
18756 PW OBL YELLOW STENCIL NEW 992.25
18757 PW 8 STNECIL NEW 981.23
19074 05511 PW FAST DRY YELLOW PAINT - 5 G 3,994.00
Total : 7,905.13
187549 9/19/2023 008637 ROBERTSON'S READY MIX LTD 315126 05539 PW PSI READY MIX CONCRETE 1,980.10 317152 05538 PW PSI READY MIX CONCRETE 1,368.35
Total : 3,348.45
187550 9/19/2023 005465 RPW SERVICES INC. 35867 PW INSPEC/TREAT GOPHERS BG , 462.00 Total : 462.00
187551 9/19/2023 010475 SANCHEZ FLORES, ANA M. 2023.8.9 RCS SR CITIZEN COMM AUG MTG 100.00 Total : 100.00
187552 9/19/2023 008861 SHARE CORPORATION 244183 PW CUSTODIAL SUPPLIES 1,022.17 Exhibit 1 53
Voucher List
09/20/2023 12:06:54PM CITY OF BELL GARDENS
Page: 10
Bank code : common
Voucher Date Vendor
Invoice PO # Description/Account Amount
187552 9/19/2023 008861 008861 SHARE CORPORATION (Continued) 187553 9/19/2023 007642 SKYLINE SAFETY & SUPPLY, PATRICIA SC 7752 187554 9/19/2023 002063 SMART & FINAL
187555 9/19/2023 002088 SOCALGAS
567455
980200
03560611000-08282:
06477094269-08242:
09650638001-08282:
11300697007-08240:
12170673003-08232:
12560694098-08240:
13010672007-08292:
187556 9/19/2023 002087 SOUTHERN CALIFORNIA EDISON 600001511489-0905; 700020728641-0906:
700143043419-0817:
700173489897-0818;
700379113430-0817;
700394307872-0808:
700436447302-0818:
700443430692-0824:
187557 9/19/2023 007554 STEAMX,LLC, MIKE J. MANCE
187558 9/19/2023 002169 SUPER A FOODS
66590
PW LATEX GLOVES
Total :
Total :
RCS STAR FIESTAS PATRIAS 9/15
RCS SR CTR BIRTHDAY EVENT SU
Total :
PW 8327 GARFIELD AVE.
PW 8100 PARK LANE
PW 5856 LUDELL ST
PW 8110 PARK LANE
PW 6662 LOVELAND ST
PW 8000 PARK LANE
PW 7100 GARFIELD AVE
Total :
PW VARIOUS LOCATIONS
PW 8120 EASTERN AVE. PED
PW VARIOUS LOCATIONS
PW 8000 PK LANE UNIT A
PW 7907 EASTERN AVE.
PW 6722 CLARA ST
PW 6208 LOVELAND ST
PW 6515 SCOUT AVE PED
PW EQUIPMNT REPAIR
66696 PW EQUIP REPAIR FDPK
3109-090123
6114
6139
6140
6141
6143
Total :
Total :
RCS STORYTIME AT PK SUPPLIES
RCS NYC BAKING CLASS 9/7
RCS SUNDAE TREASURE HUNT SE
RCS KIDS COOKING MONTH OF SE
RCS FLOUR POWER SEPT
RCS VOLUNTEEN BEACH DAY 9/2
1,022.17
897.55
897.55
149.89
182.11
332.00
65.78 14.53
14.30 71.36
28.54 92.82
156.64
443.97
5,681.96
14.46 33,241.39
10,484.24
14.47 1,900.16
117.88
17.79 51,472.35
570.69
249.99
820.68
36.71 36.44
47.90 126.00
34.91 173.02
Exhibit 1 54
Voucher List
09/20/2023 12:06:54PM CITY OF BELL GARDENS
Page: 11
Bank code : common
Voucher
Date Vendor
187558 9/19/2023 002169 002169 SUPER A FOODS
187559 9/19/2023 006443 TOTAL EXTERMINATING INC.
187560 9/19/2023 002262 TRIANGLE SPORTS, INC
187561 9/19/2023 005879 UNITED SITE SERVICES
187562 9/19/2023 006130 VERIZON WIRELESS
187563 9/19/2023 010481 VICENCIO, EDGAR
187564 9/19/2023 002380 VISION SERVICE PLAN
187565 9/19/2023 002383 VORTEX INDUSTRIES INC.
187566 9/19/2023 002427 WHITTIER FERTILIZER
Invoice
(Continued)
89748
89749-090723
89750-090723
89751-090723
89752-090723
89754-090723
89755-090723
89756-090723
PO #
Description/Account
Total :
PW MNTHLY SRVC CH/BGPD SEPT
PW MNTHLY SRVC FDPK SPORTS
PW MNTHLY SRVC 7104 PERRY RC
PW MNTHLY SRVC AT PWS
PW MNTHLY SRVC AT SIERRA BLD,
PW MNTHLY SRVCS BGVP
PW MNTHLY SRVC AT NYC SEPT
PW MNTHLY SRVC CH/PD SEPT
Total :
42103 RCS YTH SOFTBALL AWARDS
42104 RCS SENIOR SOCCER AWARDS
42109 RCS SMALL FRY TBALL AWARDS
Total :
11413683842
9942768407
190723
818733186
818733189
031698661
402776
403330
PW SEWAGE TANK SRVC FDPK 8/:
Total :
PW MNTHLY SRVC FEES 7/24-8/23
Total :
RCS HIP HOP INSTRUCTOR SEPT
Total :
FA VISION INS SEPT 23
RET VISION INS SEPT 2023
Total :
PW PD ROLLING GATE EQUIPMEN'
Total :
PW TURF SEED PARKS
PW TURF SEED VETERANS PARK
Total :
Amount
454.98
195.00
100.00
70.00 50.00
60.00 125.00
98.00 170.00
868.00
767.81
676.71
972.36
2,416.88
579.95
579.95
1,132.34
1,132.34
870.00
870.00
5,610.20
2,056.03
7,666.23
785.00
785.00
562.28
415.09
977.37
105 Vouchers for bank code : common Bank total : 1,211,039.48 Exhibit 1
55 Voucher List
09/20/2023 12:06:54PM CITY OF BELL GARDENS
Page: 12
Bank code : common
Voucher Date Vendor Invoice PO # Description/Account Amount 105 Vouchers in this report
Total vouchers : 1,211,039.48
Voucher List
09/20/2023 12:56:29PM CITY OF BELL GARDENS
Bank code : common
Voucher
Date Vendor
Page: 1
Invoice PO # Description/Account Amount
187567 9/19/2023 008453 BLACK & WHITE EMERGENCY VEH 5184 05373 PD UNIT 279 EMERG VEH COMM E, 22,234.12 5185 05373 PD UNIT#280 EMERG VEH COMM E 22,234.12
5186 05373 PD UNIT 281 EMER VEH COMM EQI 21,335.03
Total : 65,803.27
187568 9/19/2023 003917 DIAL COMMUNICATIONS 52599 PW RADIO INSTALL UNIT G 2201 JI. 541.91 Total : 541.91
187569 9/19/2023 008637 ROBERTSON'S READY MIX LTD 281758 05541 PW PSI READY MIX CONCRETE 1,669.85 Total : 1,669.85
187570 9/19/2023 010848 SEIU 2015 101150800 RCS BGVP SENIOR CNTR 200.00 Total : 200.00
187571 9/19/2023 007642 SKYLINE SAFETY & SUPPLY, PATRICIA SC 7672 PW SAFETY LIGHTS/UTILITY CRE P 863.30 Total : 863.30
5 Vouchers for bank code : common Bank total : 69,078.33 5 Vouchers in this report
Total vouchers : 69,078.33
Exhibit 1 57
Voucher List
09/20/2023 4:41:58PM CITY OF BELL GARDENS
Page: 1
Bank code : common
Voucher
Date Vendor
187572 9/19/2023 001293 LIEBERT CASSIDY WHITMORE
187573 9/19/2023 009690 WEX BANK
2 Vouchers for bank code : common
2 Vouchers in this report
Invoice PO # Description/Account Amount
250614
250621
250623
PROFESSIONAL SRVCS THRU 8/31
PROFESSIONAL SRVCS THRU 8/31
PROFESSIONAL SRVCS THRU 8/31
Total :
43.50 4,977.50
1,530.64
6,551.64
91656812 FUEL EXPALL DEPTS 8/7-9/6 43,463.85
Total : 43,463.85
Bank total : 50,015.49
Total vouchers : 50,015.49
Exhibit 1 58
CITY OF BELL GARDENS
OFFICE OF THE CITY MANAGER
AGENDA REPORT
Item 5.
TO: Honorable Mayor and City Council Members
FROM: Michael B. O'Kelly, City Manager
BY: Manuel Carrillo, Director of Finance & Administrative Services SUBJECT: WARRANT REGISTER SUCCESSORAGENCY
DATE: October 9, 2023
RECOMMENDATION:
It is staff's recommendation that the Successor Agency Members receive and file the warrant registers dated 09/12/23 and 09/19/23.
BACKGROUND/DISCUSSION:
The attached warrant registers are for 09/12/23 and 09/19/23. The warrant registers reflect the obligation of the Successor Agency to the Community Development Commission (Successor Agency) for the above referenced date.
CONCLUSION:
If the recommendation to the Successor Agency Members is approved, then the warrant registers dated 09/12/23 and 09/19/23 will be received and filed.
FISCAL IMPACT:
Warrant register
Warrant registe
09/12/23
09/19/23
12934
Total Voucher
12935
$11,412.50
$11,412.50
$3,124.82
Total Voucher
3,124.82
Grand Total Voucher
ATTACHMENTS:
Exhibit 1- Warrant Register
4,537.32
APPROVED ELECTRONICALLY BY:
Michael B. O'Kelly, City Manager
Stephanie Vasquez, City Attorney and/or Susie Altamirano, Assistant City Attorney Manuel Carrillo, Director of Finance and Administrative Services 59 Voucher List
09/13/2023 5:43:08PM CITY OF BELL GARDENS
Bank code : cdcckg
Voucher Date Vendor
12934 9/12/2023 002624 US BANK
1 Vouchers for bank code : cdcckg
1 Vouchers in this report
Page: 1
Invoice PO # Description/Account Amount
6998160
6998161
7003358
FA 22/23 ADMIN FEE TARRB 14B
FA 22/23 ADMIN FEE TARRB 14C
FA 22/23 ADMIN FEE BGFA 2005
Total :
3,575.00
3,575.00
4,262.50
11,412.50
Bank total : 11,412.50
Total vouchers : 11,412.50
Exhibit 1 60
Voucher List
09/20/2023 1:03:37PM CITY OF BELL GARDENS
Page: 1
Bank code : cdcckg
Voucher
Date Vendor
12935
9/19/2023 000497 CITY OF BELL GARDENS
1 Vouchers for bank code : cdcckg
1 Vouchers in this report
Invoice PO # Description/Account Amount
JAN -JUNE 2023 FA BURK OIL REIM JAN -JUNE 2023
Total :
3,124.82
3,124.82
Bank total : 3,124.82
Total vouchers : 3,124.82
Exhibit 1 61
CITY OF BELL GARDENS
OFFICE OF THE CITY MANAGER
AGENDA REPORT
Item 6.
TO: Honorable Mayor and City Council Members
FROM: Michael B. O'Kelly, City Manager
BY: Manuel Carrillo, Director of Finance and Administrative Services Cathy R. Thompson, Interim Human Resources Manager
SUBJECT: CLAIM REJECTION
DATE: October 9, 2023
RECOMMENDATION:
It is staff's recommendation that the City Council reject the following claims and the claimants and/or their representatives be notified:
• Cesar Mejia v. City of Bell Gardens (DOE 7/11/2023; DOR 7/11/2023) • Ruben Martinez v. City of Bell Gardens (DOE 6/27/2023; DOR 6/27/2023) • Verny Omar Garcia v. City of Bell Gardens (DOE 7/25/2023; DOR 7/26/2023) The City's general liability claims administrator, Carl Warren & Company, recommends that the claims be rejected.
The claimants, subject to certain exceptions, shall have up to six (6) months to file a court action subsequent to the City Council's rejection.
BACKGROUND/DISCUSSION:
The City Clerk's Office received the claims and City staff directed the claims to the City's general liability claims administrator Carl Warren & Company for processing, review, and investigation.
CONCLUSION:
After carefully reviewing and investigating the claims, Carl Warren & Company and City staff determined that the City is not liable for the claims and recommend rejection.
FISCAL IMPACT:
No fiscal impact.
APPROVED ELECTRONICALLY BY:
Michael B. O'Kelly, City Manager
Stephanie Vasquez, City Attorney and/or Susie Altamirano, Assistant City Attorney Manuel Carrillo, Director of Finance and Administrative Services 62 CITY OF BELL GARDENS
OFFICE OF THE CITY MANAGER
AGENDA REPORT
Item 7.
TO: Honorable Mayor and City Council Members
FROM: Michael B. O'Kelly, City Manager
BY: Gustavo Romo, Community Development Director
SUBJECT: A RESOLUTION APPROVING A REIMBURSEMENT AGREEMENT WITH THE
CALIFORNIA STATE WATER RESOURCES CONTROL BOARD
DATE: October 9, 2023
RECOMMENDATION:
It is staff's recommendation that the City Council:
1. Approve a Reimbursement Agreement with the California State Water Resources Control Board ("SWRCB") for their review and recommendations pertaining to the investigation and cleanup of the contaminated former Berk Oil and Pacific Metal Craft property located at 5600-5636 Shull Street ("Subject Site"), subject to City Attorney approval, as to form; and
2. Adopt a resolution authorizing the City Manager to execute a Reimbursement Agreement with SWRCB.
BACKGROUND/DISCUSSION:
On January 1, 2021, Senate Bill 158 ("SB 158") authorized the California Department of Toxic Substance Control ("DTSC") to implement a grant program known as the Equitable Community Revitalization Grant ("ECRG") to provide financial assistance to communities via reimbursable grants to investigate and clean brownfield sites.
Brownfields are properties that are contaminated, or thought to be contaminated, with hazardous waste, and are underutilized due to perceived remediation cost and liability concerns. Many brownfield sites are in the urban core, near transit, and often in underserved communities with housing and economic development needs due to availability of existing infrastructure and hazardous waste businesses operating in older and more established areas of the region, and implications of environmental justice issues. Cleaning up brownfield properties not only eliminates the threat to residents and neighborhoods from hazardous substances, but it also frees abandoned or underutilized land for productive reuse.
The ECRG is an unprecedented opportunity to address the historically disproportionate impacts to communities and to revitalize land for public benefit. On June 6, 2022, DTSC's Office of Brownfields used the ECRG to award the City of Bell Gardens ("City") an amount of $6,495,000.00 for the cleanup activities at the Subject Site.
On October 14, 2022, City Council adopted Resolution 2022-108 approving a Professional Services Agreement ("PSA") with WSP USA Environment & Infrastructure Inc. ("WSP") — formerly Woods Environment & Infrastructure Solutions, Inc. — for remediation consulting services for 5600-5636 Shull Street / Former Berk Oil Site funded by the ECRG. WSP was selected to identify data gaps in previous site investigation work and to develop a preliminary scope of work and budget to address each data gap identified, prepare a Remedial Action Plan ("RAP") to include refinement, planning, and design of the remedial actions, and conduct actions to comply with the California Environmental Quality Act ("CEQA") and grant reporting requirements.
The SWRCB was required to review the work of the consultant and ensure proposed mitigation would be in line with 63 the protocols and provisions established by the State as it relates to water quality. The ECRG agreement provides that the City as grantee will carry out ECRG activities in accordance with all applicable state and local laws and that DTSC will disburse the approved amount to the City. The SWRCB and partner agencies are charged with protecting California from the effects of chemical contamination. The SW RC investigates and/or remediates harm or threat to human health, safety, or the environment caused by existing or threatened surface of groundwater. In collaboration with DTSC, SWRCB will be acting as an oversight agency for the environmental cleanup activities at the Subject Site. The Porter -Cologne Water Quality Control Act (Section 13365) allows the SWRCB to recover reasonable expenses from the responsible party for overseeing cleanup of illegal discharges, contaminated properties, and other unregulated releases adversely affecting the State's waters. Invoices to date total $162,914.86 for work done from July 1, 2022 — June 30, 2023.
This Agreement will allow the ECRG to reimburse the City for all invoices submitted by the SCRCB to the City for review associated with the subject property clean-up.
CONCLUSION:
Approval of the Reimbursement Agreement with the SWRCB will allow the ECRG to reimburse the City for all invoices submitted by the SW RCB to the City for review associated with the subject property clean-up.
FISCAL IMPACT:
Invoices for the work done for the previous fiscal year totaled $162,914.86 and work has begun for the current fiscal year. The authority to use grant funds and be reimbursed for expenditures is anticipated to expire June 30, 2024.
There are sufficient funds from the ECRG to authorize payment of SWRCB invoices from Berk Oil account, 115- 4777-3927, and reimbursement from DTSC.
ATTACHMENTS:
Exhibit 1 - Resolution No. 2023-81
Exhibit 2 - SW RCB Consulting Services Reimbursement Agreement APPROVED ELECTRONICALLY BY:
Michael B. O'Kelly, City Manager
Stephanie Vasquez, City Attorney and/or Susie Altamirano, Assistant City Attorney Manuel Carrillo, Director of Finance and Administrative Services 64 RESOLUTION NO. 2023-81
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELL
GARDENS, CALIFORNIA, APPROVING REIMBURSEMENT
AGREEMENT WITH STATE WATER REGIONAL CONTROL BOARD
FOR THE OVERSIGHT SERVICES OF THE REMEDITATION
ACTIVITIES AT THE FORMER BERK OIL AND PACIFIC METAL
CRAFT SITE LOCATED AT 5600-5636 SHULL STREET.
WHEREAS, the City of Bell Gardens ("City") required the State Water Regional Control Board ("State Water Board") to provide review and recommendations pertaining to the investigation and cleanup of the contaminated former Berk Oil and Pacific Metal Craft Property located at 5600-5636 Shull Street ("Subject Site"); and WHEREAS, in collaboration with California Department of Toxic Substance Control, the State Water Board will be acting as an oversight agency for the environmental cleanup activities at the Subject Site; and
WHEREAS, the State Water Board reviewed the work of the City's remediation consultant to ensure proposed mitigation would be in line with the protocols and provisions established by the State as it relates to water quality; and WHEREAS, the State Water Board investigated and/or remediates harm or threat to human health, safety, or the environment caused by existing or threatened surface of groundwater; and
WHEREAS, the Porter -Cologne Water Quality Control Act (Section 13365) allows the State Water Board to recover reasonable expenses from the responsible party for overseeing cleanup of illegal discharges, contaminated properties, and other unregulated releases adversely affecting the State's waters; and
WHEREAS, a reimbursement agreement will allow the City to be reimbursed for payment to the State Water Board.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Bell Gardens as follows:
SECTION 1. The City Council hereby finds and determines that the foregoing recitals are true and correct, constitute a material part of this Resolution, and therefore incorporate them herein in their entirety as part of the findings.
SECTION 2. The City Council of the City of Bell Gardens hereby approves the Reimbursement Agreement by and between the City of Bell Gardens and State Water Board.
SECTION 3. The City Council further authorizes and directs the City Manager to execute the Reimbursement Agreement on the City's behalf along with any other ancillary Exhibit 1 65
Resolution 2023-81
documents relating thereto, including any other documents consistent with and necessary to the implementation of the intent of the City Council as set forth in this Resolution.
SECTION 4. The approval of the Reimbursement Services Agreement is exempt from the California Environmental Quality Act ("CEQA") under the following provisions of the CEQA Guidelines: Section 15060(c)(3) because the activity is not a project.
SECTION 5. The City Clerk shall attest and certify to the passage and adoption of this Resolution and enter it into the book of original resolutions, and it shall become effective immediately upon its approval.
PASSED, APPROVED and ADOPTED this 9th day of October, 2023.
THE CITY OF BELL GARDENS
Francis De Leon, Mayor
APPROVED AS TO FORM: ATTEST:
Stephanie Vasquez
City Attorney
Daisy Gomez
City Clerk
[Signatures on the following page]
Exhibit 1
2643
Resolution 2023-81
I, , City Clerk of the City of Bell Gardens, hereby CERTIFY that City Council Resolution No. was adopted by the Bell Gardens City Council at a regular meeting of the City Council held on , and was approved and passed by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Daisy Gomez
City Clerk
Exhibit 1
363
2023
REIMBURSEMENT AGREEMENT
(Engagement: Site Cleanup Program)
(Parties: State Water Resources Control Board and City of Bell Gardens) THIS REIMBURSEMENT AGREEMENT ("Agreement") is made and entered into this day of 2023 (hereinafter, the "Effective Date"), by and between the CITY OF BELL GARDENS, a municipal corporation (hereinafter, "City") and STATE WATER RESOURCES CONTROL BOARD (hereinafter, "State Water Board"). For purposes of this Agreement, the capitalized term "Parties" shall be a collective reference to City and State Water Board. The capitalized term "Party" may refer to either City or State Water Board interchangeably as reasonably appropriate.
RECITALS
WHEREAS, City required the State Water Board to provide review and recommendations pertaining to the investigation and cleanup of the contaminated former Berk Oil and Pacific Metal Craft Property located at 5600-5636 Shull Street ("Subject Site"); and
WHEREAS, in collaboration with California Department of Toxic Substance Control, the State Water Board will be acting as an oversight agency for the environmental cleanup activities at the Subject Site; and
WHEREAS, the State Water Board reviewed the work of the City's remediation consultant to ensure proposed mitigation would be in line with the protocols and provisions established by the State as it relates to water quality; and WHEREAS, the State Water Board investigated and/or remediates harm or threat to human health, safety, or the environment caused by existing or threatened surface of groundwater; and
WHEREAS, the Porter -Cologne Water Quality Control Act (Section 13365) allows the State Water Board to recover reasonable expenses from the responsible party for overseeing cleanup of illegal discharges, contaminated properties, and other unregulated releases adversely affecting the State's waters; and
WHEREAS, this Agreement will allow the City to be reimbursed for payment to the State Water Board.
NOW THEREFORE, in consideration of mutual covenants and conditions herein contained, the Parties agree as follows:
I .
ENGAGEMENT TERMS
1 1 SCOPE OF WORK: Subject to the terms and conditions of this Agreement, State Water Board provided the services required as an oversight agency as referenced 1 Exhibit 2 68
in that Final Collection Notice, Invoice No. SC -134851, Account No. 2040193, (hereinafter, the "Invoices") which is attached and incorporated hereto as "Exhibit A".
1.2 COMPENSATION: In consideration for the State Water Board's review associated with the Subject Site, City will reimburse State Water Board a lump sum payment of ONE HUNDRED SIXTY-TWO THOUSAND NINE HUNDRED
FOURTEEN DOLLARS AND EIGHTY-SIX CENT ($162,914.86) (the "Reimbursement Sum").
1.3 PAYMENT OF COMPENSATION: The Parties agree that the Reimbursement Sum will be paid in a single lump sum payment to State Water Board within sixty (60) days from the Effective Date of this Agreement.
II.
TERMINATION
2.1 TERMINATION WITHOUT CAUSE: Notwithstanding any other provision of this Agreement, either Party may terminate this Agreement at any time for convenience and without cause, provided that notice of such termination is made in writing issued not less than ninety (90) calendar days prior to the effective date of any such termination.
III.
MUTUAL RELEASE OF LIABILITY
3.1 State Water Board shall defend, indemnify and hold City and its directors, officers, employees, partners, contractors or agents, harmless from and against any and all claims, actions, causes of actions, demands, or liabilities of whatsoever kind and nature, including judgments, interest, reasonable attorneys' fees, and all other costs, fees, expenses, and charges to the extent that such claims arise out of, were caused by, or result from any breach of the performance of this Agreement or the negligence, gross negligence, or willful misconduct of State Water Board, its directors, officers, employees, partners, or agents.
3.2 State Water Board shall defend, indemnify and hold State Water Board and its directors, officers, employees, partners, or agents, harmless from and against any and all claims, actions, causes of actions, demands, or liabilities of whatsoever kind and nature, including judgments, interest, reasonable attorneys' fees, and all other costs, fees, expenses, and charges to the extent that such claims arise out of, were caused by, or result from any breach of the performance of this Agreement or the negligence, gross negligence, or willful misconduct of City, its directors, officers, employees, partners, or agents.
IV.
MISCELLANEOUS PROVISIONS
4.1 NOTICES: Notice given pursuant to this Agreement shall be served upon the person to be notified by personal service upon such party, or by the deposit of such 2 Exhibit 2 69
written notice in the care and custody of the United States Postal Service, postage prepaid, addressed as follows:
If to STATE WATER BOARD:
State Water Resources Control Board
SCP Program
P.O. Box 1888
Sacramento, CA 95812
If to CITY:
City of Bell Gardens
7100 S. Garfield Avenue
Bell Gardens, CA 90201
Attn: Director of Community
Development
Phone: 562-806-7700
Such notices will be deemed effective when personally delivered or successfully transmitted by facsimile as evidenced by a fax confirmation slip or when mailed, forty-eight (48) hours after deposit with the United States Postal Service, first class postage prepaid and addressed to the Party at its applicable address.
4.2 EVENT OF DEFAULT; BREACH OF AGREEMENT
A. In the event either Party fails to perform any duty, obligation, service, or task set forth under this Agreement (or fails to timely perform or properly perform any such duty, obligation, service, or task set forth under this Agreement), an event of default (hereinafter, "Event of Default") shall occur. For all Events of Default, the Party alleging an Event of Default shall give written notice to the defaulting Party (hereinafter referred to as a "Default Notice") which shall specify: (i) the nature of the Event of Default; (ii) the action required to cure the Event of Default; (iii) a date by which the Event of Default shall be cured. The Event of Default shall constitute a breach of this Agreement, if the defaulting Party fails to cure the Event of Default within the applicable cure period or any extended cure period allowed under this Agreement.
B. No waiver of any Event of Default or breach under this Agreement shall constitute a waiver of any other or subsequent Event of Default or breach.
No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise.
C. The duties and obligations imposed under this Agreement and the rights and remedies available hereunder shall be in addition to and not a limitation of any duties, obligations, rights, and remedies otherwise imposed or available by law. In addition to any other remedies available to City at law or under this Agreement in the event of any breach of this Agreement, City, in its sole and absolute discretion, may also pursue any one or more of the following remedies:
Upon written notice to State Water Board, the City may immediately terminate this Agreement in whole or in part;
3 Exhibit 2 70
ii. Upon written notice to State Water Board, the City may extend the time of performance;
iii. The City or State Water Board may proceed by appropriate court action to enforce the terms of the Agreement to recover damages for breach of the Agreement or to terminate the Agreement; or The City and/or State Water Board may exercise any other available and lawful right or remedy.
4.3 ACCOUNTING RECORDS: State Water Board shall maintain complete and accurate records with respect to all matters covered under this Agreement for a period of three (3) years after the expiration or termination of this Agreement. City shall have the right to access and examine such records, without charge, during normal business hours. City shall further have the right to audit such records, to make transcripts therefrom and to inspect all program data, documents, proceedings, and activities.
4.5 GOVERNING LAW AND VENUE: This Agreement shall be interpreted and governed according to the laws of the State of California. In the event of litigation between the Parties, venue, without exception, shall be in the part of any such litigation be tried exclusively in federal court, venue, without exception, shall be in the Central District of California located in the City of Los Angeles, California.
4.6 ATTORNEY'S FEES: If either Party commences an action against the other Party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing Party in such litigation shall be entitled to have and recover from the losing Party reasonable attorney's fees and all other costs of such action.
4.7 SUCCESSORS AND ASSIGNS: This Agreement shall be binding on the successors and assigns of the Parties.
4.8 NO THIRD -PARTY BENEFIT: There are no intended third -party beneficiaries of any right or obligation assumed by the Parties. All rights and benefits under this Agreement inure exclusively to the Parties.
4.9 FURTHER ASSURANCES: Each Party covenants, on behalf of itself and its successors and assigns, to take all actions and do all things, and to execute, with acknowledgment or affidavit if required, any and all documents, instruments and writings as may be necessary or proper to achieve the purposes and objectives of the Agreement.
4.10 CONSTRUCTION OF AGREEMENT: This Agreement shall not be construed in favor of, or against, either Party but shall be construed as if the Parties prepared this Agreement together through a process of negotiation and with the advice of their respective attorneys.
4 Exhibit 2 71
4.11 SEVERABILITY: If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.
4.12 AMENDMENT; MODIFICATIONS: No amendment, modification or supplement of this Agreement shall be valid or binding unless executed in writing and signed by both Parties, subject to City Council approval. The requirement for written amendments, modifications or supplements cannot be waived and any attempted waiver shall be void and invalid.
4.13 CAPTIONS: The captions of the various sections and subsections are for convenience and ease of reference only, and do not define, limits, augment, or describe the scope, content, or intent of this Agreement.
4.14 ENTIRE AGREEMENT: This Agreement shall constitute the entire, complete, final and exclusive expression of the parties with respect to the matters addressed herein and supersedes all other Agreements or understandings, whether oral or written, or entered into between City and State Water Board prior to the execution of this Agreement. No statements, representations or other Agreements, whether oral or written, made by any Party which are not embodied herein shall be valid or binding. No amendment, modification or supplement to this Agreement shall be valid and binding unless in writing and duly executed by the parties pursuant to Section 4.12, above.
4.15 COUNTERPARTS: This Agreement shall be executed in three (3) original counterparts each of which shall be of equal force and effect. No handwritten or typewritten amendment, modification or supplement to any one counterpart shall be valid or binding unless made to all counterparts in conformity with Section 4.12, above. One fully executed original counterpart will be delivered to State Water Board and the remaining two original counterparts will be retained by City. (SIGNATURES ON NEXT PAGE)
5 Exhibit 2 72
IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed the day and year first appearing in this Agreement, above.
CITY OF BELL GARDENS: STATE WATER RESOURCES CONTROL
BOARD:
By: By:
Name: Name:
Title: Title:
Date: Date:
APPROVED AS TO FORM:
By:
Stephanie Vasquez, City Attorney
6 Exhibit 2 73
EXHIBIT "A"
INVOICES
7 Exhibit 2 74
Water Boards
August 2, 2023
CITY OF BELL GARDENS
Responsible Party No.: 667
Attn: Gustavo Romo
7100 GARFIELD AVE S
BELL GARDENS, CA 90201
FINAL COLLECTION NOTICE
GAVIN NEWSOM
n otti-I4Nort
YANA GARCIA
Ivor FOR
NVIflCNMENTAL RRUTE;TION
SITE CLEANUP PROGRAM: INVOICE NO. SC -134851, ACCOUNT NO. 2040193, FOR SITE ADDRESS: 5614 Shull Street
Per California Water Code section 13365, you were sent an invoice for oversight costs for the site listed above. In addition, you were sent a First Past Due Notice and a Second Past Due Notice regarding the above outstanding invoice. Our records indicate that payment has not been received.
If a ment for this invoice is not received b Se tember 2 2023 our invoice will be referred to a private collection acency for further collection action.
To ensure proper crediting of your account, include the invoice number on your check. If paying multiple invoices, all invoice numbers must be listed on your check. Additional payment options can be found at: https://www.waterboards.ca.gov/make_a_payment .
Mail payment to:
State Water Resources Control Board
Site Cleanup Program
PO Box 1888
Sacramento, CA 95812-1888
If you have any questions or need a copy of the original invoice, please contact us at [email protected] or (916) 341-5643.
Sincerely,
Site Cleanup Program
Division of Administrative Services
1001
Exhibit 2
ej kr,..:lv:d, PAVER 75
STATE WATER RESOURCES CONTROL BOARD
SITE CLEANUP PROGRAM
INVOICE FOR OVERSIGHT COSTS
FOR THE PERIOD ENDING: 12/31/22
Date: 02/01/2023
Account Number: 2040193
Regional Board: Los Angeles Region f, p� ,: '�- Invoice Number: SC -136151
CITY OF BELL GARDENS
Gustavo Romo
7100 GARFIELD AVE S
BELL GARDENS, CA 90201
Responsible Party #: 667
Past Due Amount
RECEIVED °
n APR 1 1 2023
Billing Period Charges: 10/01/22-12/31/22
Invoice Amount:
Site Location:
Former Berk Oil & Pacific Metal Craft
5614 Shull Street
Bell Gardens CA
$39,692.00
$33,821.01
** Itemized list of new charges on reverse or subsequent page(s) Visit https://www.waterboards.ca.gov/make_a_payment/ for additional payment methods. Payments may take two weeks to post to an account. For questions regarding invoices and payments, please contact the SCP Message Line at (916) 341-5643 or email [email protected]
The Porter -Cologne Water Quality Control Act (Section 13365) allows the Regional Water Quality Control Board to recover reasonable expenses from the responsible party for overseeing cleanup of illegal discharges, contaminated properties, and other unregulated releases adversely affecting the State's waters. When your slte was put in the cost recovery program, you received a letter explaining that the State Water Resources Control Board would bill you for the Regional Board's costs of cleanup oversight.
To request a detailed explanation of the hours expended by any Regional Board staff member on the reverse side, please contact Arthur Heath at (213) 576-6725. If there are disputed charges for activities which you cannot resolve with the program manager, you should discuss them with the Executive Officer of the Regional Board.
PAYMENT IS DUE IN 30 DAYS
Dr EeeE RETURN CHECK -IN CK-IN ENVELOPE PROVIDED
rte. -...r ...: i vftn aai
TO ENSURE PROPER CREDITING OF YOUR ACCOUNT: INCLUDE YOUR RESPONSIBLE PARTY NUMBER, ACCOUNT NUMBER AND INVOICE NUMBER ON YOUR CHECK. IF PAYING MULTIPLE INVOICES, ALL ACCOUNT NUMBERS MUST BE LISTED ON YOUR CHECK. MAKE CHECKS PAYABLE TO: SWRCB RP #: 667 Account Number: 2040193
SEND PAYMENTS TO:
Invoice Number: SC -136151 Invoice Amount: $33,821.01
Net Past Due Amount: $39,692.00
State Water Resources Control Board
SCP Program
P. O. Box 1888
Sacramento, CA 95812-1888
Total Due: $73,513.01
Enclosed:
Wk.()
Exhibit 2 76
STATE WATER RESOURCES CONTROL BOARD
SITE CLEANUP PROGRAM
INVOICE FOR OVERSIGHT COSTS
FOR THE PERIOD ENDING: 03/31/23
Date: 05/02/2023
Regional Board: Los Angeles Region
Account Number: 2040193
Invoice Number: SC -137457
CITY OF BELL GARDENS
Gustavo Romo
7100 GARFIELD AVE S
BELL GARDENS, CA 90201
Responsible Party #: 667 i.
Past Due Amount
Billing Period Charges: ©1/01/23-03/31/23
invoice Amount:
Site Location:
Former Berk Oil & Paciflc Metal Craft
5614 Shull Street
Bell Gardens CA
$73,513.01
$41,365.20
** Itemized list of new charges on reverse or subsequent page(s) Visit https://www.waterboards.ca.gov/make_a_payment/ for additional payment methods. Payments may take two weeks to post to an account. For questions regarding invoices and payments, please contact the SCP Message Line at (916) 341-5643 or email [email protected]
The Porter -Cologne Water Quality Control Act (Section 13365) allows the Regional Water Quality Control Board to recover reasonable expenses from the responsible party for overseeing cleanup of illegal discharges, contaminated properties, and other unregulated releases adversely affecting the State's waters. When your site was put in the cost recovery program, you received a letter explaining that the State Water Resources Control Board would bill you for the Regional Board's costs of cleanup oversight.
To request a detailed explanation of the hours expended by any Regional Board staff member on the reverse side, please contact Arthur Heath at (213) 576-6725. If there are disputed charges for activities which you cannot resolve with the program manager, you should discuss them with the Executive Officer of the Regional Board.
PAYMENT IS DUE IN 30 DAYS
PLEASE RETURN CHECK IN ENVELOPE PROVIDED
TO ENSURE PROPER CREDITING OF YOUR ACCOUNT:INCLUDE YOUR RESPONSIBLE PARTY NUMBER, ACCOUNT NUMBER AND INVOICE NUMBER ON YOUR CHECK. IF PAYING MULTIPLE INVOICES, ALL ACCOUNT NUMBERS MUST 8E LISTED ON YOUR CHECK. MAKE CHECKS PAYABLE TO: SWRCB RP #: 667 Account Number: 2040193 Invoice Number: SC -137457 Invoice Amount: $41,365.20 Net Past Due Amount: $73,513.01
SEND PAYMENTS TO:
State Water Resources Control Board
SCP Program
P. O. Box 1888
Sacramento, CA 95812-1888
Total Due: $114,878.21
Enclosed:
4-1,9345 .
Exhibit 2
77 STATE WATER RESOURCES CONTROL BOARD
SITE CLEANUP PROGRAM
INVOICE FOR OVERSIGHT COSTS
FOR THE PERIOD ENDING: 09/30/22
Date: 11/01/2022
Regional Board: Los Angeles Region
CITY OF BELL GARDENS
Gustavo Romo
7100 GARFIELD AVE S
BELL GARDENS, CA 90201
Responsible Party #: 667
Past Due Amount
Account Number: 2040193
Invoice Number: SC -134851
Site Location:
Former Berk Oil & Pacific Metal Craft
5614 Shull Street
BeII Gardens CA
Billing Period Charges: 07/01/22-09/30/22
Invoice Amount:
$0.00
$39,692.00
** Itemized list of new charges on reverse or subsequent page(s) Visit https://www.waterboards.ca.gov/make_a_payment/ for additional payment methods. Payments may take two weeks to post to an account. For questions regarding invoices and payments, please contact the SCP Message Line at (916) 341-5643 or email [email protected]
The Porter -Cologne Water Quality Control Act (Section 13365) allows the Regional Water Quality Control Board to recover reasonable expenses from the responsible party for overseeing cleanup of illegal discharges, contaminated properties, and other unregulated releases adversely affecting the State's waters. When your site was put in the cost recovery program, you received a letter explaining that the State Water Resources Control Board would bill you for the Regional Board's costs of cleanup oversight.
To request a detailed explanation of the hours expended by any Regional Board staff member on the reverse side, please contact Arthur Heath at (213) 576-6725. If there are disputed charges for activities which you cannot resolve with the program manager, you should discuss them with the Executive Officer of the Regional Board.
PAYMENT IS DUE IN 30 DAYS
PLEASE RETURN C-Ed's--C--K !N-ENvELOOPE PROVIDED
TO ENSURE PROPER CREDITING OF YOUR ACCOUNT: INCLUDE YOUR RESPONSIBLE PARTY NUMBER, ACCOUNT NUMBER AND INVOICE NUMBER ON YOUR CHECK. IF PAYING MULTIPLE INVOICES, ALL ACCOUNT NUMBERS MUST BE LISTED ON YOUR CHECK. MAKE CHECKS PAYABLE TO: SWRCB RP #: 667 Account Number: 2040193 Invoice Number:
SEND PAYMENTS TO:
State Water Resources Control Board
SCP Program
P. O. Box 1888
Sacramento, CA 95812-1888
SC -134851 Invoice Amount: $39,692.00
Net Past Due Amount: $0.00
Total Due:
Enclosed:
$39,692.00
$ 361, (1161
Exhibit 2 78
STATE WATER RESOURCES CONTROL BOARD
SITE CLEANUP PROGRAM
INVOICE FOR OVERSIGHT COSTS
FOR THE PERIOD ENDING: 06/30/23
Date: 08/15/2023
Regional Board: Los Angeles Region
CITY OF BELL GARDENS
Gustavo Romo
7100 GARFIELD AVE S
BELL GARDENS, CA 90201
Responsible Party #: 667
Past Due Amount
4"2
Account Number: 2040193
Invoice Number: SC -138904
Site Location:
Former Berk Oil & Pacific Metal Craft
5614 Shull Street
BeII Gardens CA
Billing Period Charges: 04/01/23-06/30/23
Invoice Amount:
$114,878.21
$48,036.65
** Itemized list of new charges on reverse or subsequent page(s) Visit https://www.waterboards.ca.gov/make_a_payment/ for additional payment methods. Payments may take two weeks to post to an account. For questions regarding invoices and payments, please contact the SCP Message Line at (916) 341-5643 or email [email protected]
The Porter -Cologne Water Quality Control Act (Section 13365) allows the Regional Water Quality Control Board to recover reasonable expenses from the responsible party for overseeing cleanup of illegal discharges, contaminated properties, and other unregulated releases adversely affecting the State's waters. When your site was put in the cost recovery program, you received a letter explaining that the State Water Resources Control Board would bill you for the Regional Board's costs of cleanup oversight.
To request a detailed explanation of the hours expended by any Regional Board staff member on the reverse side, please contact Arthur Heath at (213) 576-6725. If there are disputed charges for activities which you cannot resolve with the program manager, you should discuss them with the Executive Officer of the Regional Board.
PAYMENT IS DUE IN 30 DAYS
PLEASE RETURN CHECK IN ENVELOPE PROVIDED
TO ENSURE PROPER CREDITING OF YOUR ACCOUNT: INCLUDE YOUR RESPONSIBLE PARTY NUMBER, ACCOUNT NUMBER AND INVOICE NUMBER ON YOUR CHECK. IF PAYING MULTIPLE INVOICES, ALL ACCOUNT NUMBERS MUST BE LISTED ON YOUR CHECK. MAKE CHECKS PAYABLE TO: SWRCB RP #: 667 Account Number: 2040193 Invoice Number: SC -138904 SEND PAYMENTS TO:
State Water Resources Control Board
SCP Program
P. O. Box 1888
Sacramento, CA 95812-1888
Invoice Amount: $48,036.65
Net Past Due Amount: $114,878.21
Total Due: $162,914.86
Enclosed: $
Exhibit 2 79
CITY OF BELL GARDENS
OFFICE OF THE CITY MANAGER
AGENDA REPORT
Item 8.
TO:
FROM:
BY:
SUBJECT:
Honorable Mayor and City Council Members
Michael B. O'Kelly, City Manager
Gustavo Romo, Community Development Director
RESOLUTION APPROVING A SIXTH AMENDMENT TO THE BELL GARDENS
MARKETPLACE GROUND LEASE EXERCISING A FIRST EXTENSION OF THE LEASE TERM OPTION FORAN ADDITIONAL TEN (10) YEARS
DATE: October 9, 2023
RECOMMENDATION:
It is staffs recommendation that the City Council adopt a Resolution approving a Sixth Amendment to the Bell Gardens Marketplace Ground Lease between the City of Bell Gardens and Prime / FRIT Bell Gardens, LLC exercising a first extension of the lease term for an additional ten (10) years.
BACKGROUND/DISCUSSION:
Bell Gardens Marketplace Shopping Center is located at 6801 Eastern Avenue in the City of Bell Gardens and is comprised of 16 parcels with a combined area of approximately 167,815 square feet. The shopping center was constructed in 1990 and is home to over 20 retail and office businesses, including the anchor tenant, Food 4 Less supermarket.
The shopping center has been leased by Primestor Development for over 15 years, with an assignment to Prime / FRIT Bell Gardens LLC ("Lessee") on January 15, 2013. The lease agreement has an option to extend for an additional ten (10) years upon expiration. Lessee is exercising its first lease extension for an additional ten (10) -year term.
CONCLUSION:
Staff recommends approval of the Sixth Amendment to the Bell Gardens Marketplace Ground Lease.
FISCAL IMPACT:
None.
ATTACHMENTS:
Exhibit 1 - Resolution No. 2023-82
Exhibit 2 - Sixth Amendment with Exhibits
APPROVED ELECTRONICALLY BY:
Michael B. O'Kelly, City Manager
Stephanie Vasquez, City Attorney and/or Susie Altamirano, Assistant City Attorney Manuel Carrillo, Director of Finance and Administrative Services 80 RESOLUTION NO. 2023-82
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELL
GARDENS, CALIFORNIA, APPROVING AND AUTHORIZING A SIXTH
AMENDMENT TO THE SHOPPING CENTER GROUND LEASE BY AND
BETWEEN THE CITY OF BELL GARDENS AND PRIME / FRIT BELL
GARDENS, LLC.
WHEREAS, the Bell Gardens Community Development Commission F/K/A The Bell Gardens Redevelopment Agency (the "Commission") and Bell Gardens Associates, a California general partnership entered into that certain Bell Gardens Shopping Center Ground Lease dated as of September 1, 1989; and
WHEREAS, the Ground Lease was amended by a First Amendment to Bell Gardens Shopping Center Ground Lease and Disposition and Development Agreement dated March 20, 1992, and was further amended by a Third Amendment to Shopping Center Ground Lease, dated March 19, 2002, and was further amended by a Fourth Amendment to Shopping Center Ground Lease, dated May 23, 2002, and was further amended by a Fifth Amendment to Shopping Center Ground Lease, dated September 25, 2006, and was assigned pursuant to an Assignment of Ground Lease, dated January 15, 2013 (all amendments and assignments referred to as "Ground Lease"); and WHEREAS, through full conveyance from the Commission to the City of Bell Gardens, through Grant Deed recorded on July 5, 2011, in the Official Records of Los Angeles County, California as Instrument No. 11-0903756, the City of Bell Gardens is the owner and lessor of that certain real property commonly known as Bell Gardens Shopping Center, located in Bell Gardens, California; and
WHEREAS, on November 27, 2012, the City of Bell Gardens and Prime / FRIT Bell Gardens, LLC ("Prime / FRIT") entered into the Ground Lease, through an assignment to Prime / FRIT from the previous lessee, Florence Eastern Marketplace, LLC; and
WHEREAS, the Ground Lease, as amended, allows for seven (7) additional extension periods of ten (10) years each; and
WHEREAS, the Ground Lease expired on September 1, 2023, and prior to the expiration, the Parties expressed their mutual intent to extend the Ground Lease with mutual sufficiency and acceptance, and notwithstanding the expiration, all Parties intend to be bound by the terms and conditions of the Ground Lease; and WHEREAS, a Sixth Amendment to the Ground Lease will extend the term to August 31, 2033, in the first extension period.
Exhibit 1 81
Resolution No. 2023-82
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Bell Gardens as follows:
SECTION 1. The City Council of the City of Bell Gardens hereby finds that the above recitals are true and correct and incorporated them herein by this reference.
SECTION 2. Based upon the above recitals, the staff report accompanying this Resolution and such other oral and written evidence, the City Council authorizes the City Manager to execute a Sixth Amendment to the Shopping Center Ground Lease with Prime / FRIT.
SECTION 3. The City Clerk shall attest and certify to the passage and adoption of this Resolution and enter it into the book of original resolutions, and it shall become effective immediately upon its approval.
PASSED, APPROVED, and ADOPTED this 9th day of October 2023.
THE CITY OF BELL GARDENS
Francis De Leon Sanchez,
Mayor
APPROVED AS TO FORM: ATTEST:
Stephanie Vasquez
City Attorney
Daisy Gomez
City Clerk
[Signatures on the following page]
2 of 3
Exhibit 1 82
Resolution No. 2023-82
I, , City Clerk of the City of Bell Gardens, hereby CERTIFY that City Council Resolution No. was adopted by the Bell Gardens City Council at a regular meeting of the City Council held on , and was approved and passed by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Daisy Gomez
City Clerk
3 of 3
Exhibit 1 83
2023
SIXTH AMENDMENT TO BELL GARDENS
SHOPPING CENTER GROUND LEASE
(Parties: City of Bell Gardens and Prime / FRIT Bell Gardens, LLC)
THIS SIXTH AMENDMENT TO BELL GARDENS SHOPPING CENTER GROUND LEASE ("Sixth Amendment"), is made and entered into as of the date of last execution by both parties (the "Effective Date") by and between THE CITY OF BELL GARDENS, a municipal corporation (hereinafter "Landlord"), and PRIME / FRIT BELL GARDENS, LLC, a Delaware limited liability company (hereinafter, "Tenant"). For purposes of this Sixth Amendment, the capitalized term "Parties" shall be a collective reference to both Landlord and Tenant. The capitalized term "Party" may refer to either Landlord or Tenant interchangeably, as appropriate.
RECITALS
This Sixth Amendment is made and entered into with respect to the following facts:
WHEREAS, the Bell Gardens Community Development Commission f/k/a the Bell Gardens Redevelopment Agency (the "Commission") and Bell Gardens Associates, a California general partnership entered into that certain Bell Gardens Shopping Center Ground Lease dated as of September 1, 1989, as evidenced by that certain Memorandum of Lease by and between the Commission and Original Tenant and recorded on December 20, 1989 in the Official Records of Los Angeles County, California as Instrument No. 89-2048053, as amended by that certain First Amendment to Bell Gardens Shopping Center Ground Lease and Disposition and Development Agreement dated as of March 20, 1992, by and between the Commission and Original. Tenant, as assigned by that certain Trustee's Deed Upon Sale pursuant to the terms and provisions of that certain Deed of Trust executed by Original Tenant and Lennar Northeast XI Partners Limited Partnership, a Delaware limited partnership ("Lennar"), dated November 17, 1995 and recorded as Instrument No. 95-1899787, as assigned by that certain Assignment of Seller's Interest in Lease and Assumption Agreement by and between Lennar and HPBA II - Bell Gardens Associates LLC, a Delaware limited liability company ("HPBA"), as recorded August 13, 1997 as Instrument No. 97-1247115 as further amended by that certain unrecorded Second Amendment to Bell Gardens Shopping Center Ground Lease by and between the Commission and HPBA, as further assigned by that certain.
Assignment and Assumption of Seller's Interest in Ground Lease dated December 31, 1997 by and between HPBA and Burnham Pacific Operating Partnership, L.P. ("Burnham"), as further amended by that certain Lessor Consent and Estoppel Certificate and Amendment to Ground Lease dated as of March, 2000, by and between Landlord and Burnham, as further amended by that certain Third Amendment to Bell Gardens Shopping Center Ground Lease dated April 9, 2002 by and between the Commission and Burnham, as assigned by that certain Assignment and Assumption of Leases executed between Burnham and Florence Eastern Marketplace, LLC, dated April 9, 2002, and as Exhibit 2 84
further amended by that certain Fourth Amendment to Bell Gardens Shopping Center Ground Lease dated as of May 23, 2002, and as further amended by that certain unrecorded Fifth Amendment to Bell Gardens Shopping Center Ground Lease dated September 27, 2006 by and between the Commission and Florence Eastern Marketplace, LLC, (as amended and assigned, the "Ground Lease"); and WHEREAS, through full conveyance from Bell Gardens Community Development Commission f/k/a the Bell Gardens Redevelopment Agency (the "Commission") to Landlord, through Grant Deed recorded on July 5, 2011, in the Official Records of Los Angeles County, California as Instrument No. 11-0903756, Landlord is the owner and lessor of that certain real property commonly known as Bell Gardens Shopping Center, located in Bell Gardens, California and as more particularly described therein (the "Premises"); and
WHEREAS, Florence Eastern Marketplace, LLC assigned the Ground Lease to Tenant by and through that certain Assignment of Ground Lease executed between Florence Eastern Marketplace, LLC and Tenant, dated January 15, 2013, and recorded in the Official Records of Los Angeles County, California as Instrument No. 20130078498, and with consent of Landlord pursuant to the Lessor Consent and Estoppel Certificate (Bell Gardens Marketplace), dated November 27, 2012 (collectively referred to as the "Ground Lease"). The Ground Lease is incorporated by reference and attached hereto as Exhibit "A"; and
WHEREAS, prior to the expiration of the Ground Lease on September 1, 2023, the Parties expressed their mutual intent to extend the Ground Lease with mutual sufficiency and acceptance, and notwithstanding the expiration, all Parties intend to be bound by the terms and conditions of the Ground Lease as extended by this Sixth Amendment, as if the Sixth Amendment had been executed upon the initial September 1, 2023 expiration date; and
WHEREAS, between the September 1, 2023 expiration date of the Ground Lease and the execution date of this Sixth Amendment, the Parties have performed in compliance with the terms of the Ground Lease and intend all rights, responsibilities, and procedures set forth under the Ground Lease to have been in full force and effect during this interim period; and
WHEREAS, under the terms of Section 2.2 of the Ground Lease, and pursuant to the Third Amendment, Tenant had the option to extend the Ground Lease for seven (7) additional periods of ten (10) years each; and
WHEREAS, Tenant duly notified Landlord of Tenant's intent to exercise the first option to extend the Ground Lease for a period of ten years ("First Extension") to an expiration date of August 31, 2033, to Landlord's consent and satisfaction and with Landlord's waiver of any claim for breach caused by insufficiency of notice. 2 Exhibit 2 85
NOW, THEREFORE, in consideration of the mutual agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, the Parties agree as follows:
SECTION 1. The Parties agree that such First Extension shall be deemed to have become effective as of September 1, 2023, and that the performance of the Parties from September 1, 2023, to the execution date of this Sixth Amendment and beyond for the remainder of the Term, shall be governed by the terms and conditions of the Ground Lease by way of this Sixth Amendment.
SECTION 2. Section 2.1 (Term) of the Ground Lease is hereby amended in its entirety to state as follows:
The term of this Lease ("Term") shall begin on September 1, 1989 ("Effective Date"), and shall end at midnight on August 31, 2033, unless the Term of this Lease is sooner terminated or extended as provided for herein.
SECTION 3. Except as otherwise set forth in this Sixth Amendment, the Ground Lease shall remain binding, controlling, and in full force and effect. This Sixth Amendment, together with the Ground Lease, shall constitute the entire, complete, final, and exclusive expression of the Parties with respect to the matters addressed in all documents.
SECTION 4. The provisions of this Sixth Amendment shall be deemed a part of the Ground Lease and except, as otherwise provided under this Sixth Amendment, the Ground Lease and all provisions contained therein shall remain binding and enforceable.
In the event of any conflict or inconsistency between the provisions of this Sixth Amendment and the provisions of the Ground Lease, the provisions of this Sixth Amendment shall control, but only in so far as such provisions conflict with the Ground Lease and no further.
SECTION 5. This Amendment may be executed in any number of counterparts, provided each of the parties hereto executes at least one counterpart; each such counterpart hereof shall be deemed to be an original instrument, but all such counterparts together shall constitute but one Amendment. [Signatures on the following page]
3 Exhibit 2 86
IN WITNESS WHEREOF, the Parties hereto have caused this Sixth Amendment to be executed on the day and year first appearing above.
LANDLORD: TENANT:
CITY OF BELL GARDENS PRIME / FRIT BELL GARDENS, LLC
By: By:
Michael B. O'Kelly, City Manager
Date:
APPROVED AS TO FORM:
By:
Stephanie Vasquez, City Attorney
Date:
4 Name:
Title: _
Date:
Exhibit 2 87
EXHIBIT "A"
GROUND LEASE
5 Exhibit 2 88
FIFTH AMENDMENT TO BELL GARDENS
SHOPPING CENTER GROUND LEASE
THIS FIFTH AMENDMENT TO BELL GARDENS SHOPPING CENTER GROUND LEASE ("Amendment"), is made and entered into as of the date of last execution by both parties (the "Effective Date") by and between. BELL GARDENS COMMUNITY DEVELOPMENT COMMISSION F/K/A THE BELL GARDENS REDEVELOPMENT AGENCY, a public body corporate and politic (hereinafter "Landlord"), and FLORENCE EASTERN MARKETPLACE LLC, a Delaware limited liability company (hereinafter, "Tenant").
RECITALS:
A. Landlord and Be11 Gardens Associates, a California general partnership ("Original Tenant") entered into that certain Be11 Gardens Shopping Center Ground Lease dated as of September 1, 1989, as evidenced by that certain Memorandum of Lease by and between Landlord and Original Tenant and recorded on December 20, 1989 in the Official Records of Los Angeles County, California as Instrument No. 89-2048053, as amended by that certain First Amendment to Bell Gardens Shopping Center Ground Lease and Disposition and Development Agreement dated as of March 20, 1992, by and between Landlord and Original. Tenant, as assigned by that certain Trustee's Deed Upon Sale pursuant to the terms and provisions of that certain Deed of Trust executed by Original Tenant and Lennar Northeast XI Partners Limited Partnership, a Delaware limited partnership ("Lennar"), dated November 17, 1995 and recorded as Instrument No. 95-1899787, as assigned by that certain Assignment of Seller's Interest in Lease and Assumption Agreement by and between Lennar and HPBA II — Bell Gardens Associates LLC, a Delaware limited liability company ("HPBA"), as recorded August 13, 1997 as Instrument No. 97-1247115 as further amended by that certain unrecorded Second Amendment to Bell Gardens Shopping Center Ground Lease by and between Landlord and HPBA, as further assigned by that certain. Assignment and Assumption of Seller's Interest in Ground Lease dated December 31, 1997 by and between HPBA and Burnham Pacific Operating Partnership, L.P. ("Burnham"), as further amended by that certain Lessor Consent and Estoppel Certificate and Amendment to Ground Lease dated as of March, 2000, by and between Landlord and Burnham, as further amended by that certain Third Amendment to Be11 Gardens Shopping Center Ground Lease dated April 9, 2002 by and between Landlord and Burnham, as assigned by that certain Assignment and Assumption of Leases executed between Burnham and Tenant dated April 9, 2002, and as further amended by that certain Fourth Amendment to Be11 Gardens Shopping Center Ground Lease dated as of May 23, 2002 (as amended and assigned, the "Ground Lease"), which Ground Lease respects certain real property commonly known as Bell Gardens Shopping Center, located in Bell Gardens, California and as more particularly described therein (the "Premises"). Unless otherwise defined herein, each capitalized term used herein shall have the meaning ascribed thereto in the Ground Lease.
B. Landlord and Tenant desire to amend the Ground Lease, on the terms and subject to the conditions set forth below.
Exhibit 2 89
NOW, THEREFORE, in consideration of the foregoing premises, the mutual covenants and conditions contained herein, and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Landlord and Tenant hereby agree as follows:
1. Operation Period: Annual Minimum Rent and Annual Percentage Rent (a) Effective on the execution and delivery of this Amendment, the first paragraph of Section 3.2.1 of the Ground Lease, as heretofore amended by the Third Amendment to Ground Lease, is hereby deleted in its entirety and the following language is substituted in lieu thereof to read as follows:
`Section 3.2.1: Annual Minimum Rent: The Annual Minimum Rent payable for each Lease Year, or any portion thereof, during the Operation Period commencing April 1 2002, shall be $1,135,000.00, with such amount to be thereafter increased every five years on the first day of April of such year (e.g., April 1, 2007; April 1, 2012, etc.) (each, an "Adjustment Date") by the greater of (1) ten percent (10%) over the Annual Minimum Rent in effect as of the date immediately preceding the Adjustment Date, or (ii) the lesser of (x) the rate of increase in the total base rental (`Tenant Base Rental') paid by all of the tenants at the Leased Premises for the fifth (5th) year of the Measurement Period (as such term is defined below) over the Total Base Rental for the first (1St) year of the Measurement Period or (y) the rate of growth of the Leased Premises' Net Operating Income (as such term is defined below) for the fifth (5th) year of the Measurement Period over the Net Operating Income for the first (1St) year of the Measurement Period. For purposes hereof, "Measurement Period" shall mean the five (5) full calendar year period (commencing on a January 1 and ending on a December 31) immediately preceding an Adjustment Date; provided however, that because accounting information is not available for a portion of calendar year 2002, the parties agree that the first Measurement Period shall commence on January 1, 2001 and end on December 31, 2006, so that the comparison years for the first Adjustment shall be calendar years 2001 and 2006 (rather than 2002 and 2006). For example: (1) if over the first Measurement Period, the Tenant Base Rental increases by 15% and the Net Operating Income increases by 12% then the Annual Minimum Rent hereunder would increase as of the first Adjustment Date by 12%; (2) if over such first Measurement Period the Tenant Base Rental increases by 11% and Net Operating Income increases by 13%, then the Annual Minimum Rent hereunder would increase as of the first Adjustment Date by 11%; and (3) if over such first Measurement Period the Tenant Base Rental increases by 9% and Net Operating Income increases by 9%, the Annual Minimum Rent hereunder would increase as of the first Adjustment Date by 10%. Provided, however, that if during any such Measurement Period the rate of growth of Tenant Base Rental and Net Operating Income are both less than 10%, then for purposes of the subsequent Measurement Period, Tenant may "look back" to the previous Measurement Period so that the cumulative increase in Annual Minimum Rent does not exceed the actual growth in Tenant Base Rental and Net Operating Income for those two (2) Measurement Periods. As an example, if over the first Measurement Period, Tenant Base Rental and Net Operating Income growth were -2-
G,Directo6Merkelplace,Marketplace Filth Amendment 5-15-06 redline. WC Exhibit 2
90 both 0% (which resulted in an increase of 10% in Annual Minimum Rent in accordance with the formula set forth above), but during the next Measurement Period the lesser of the growth in Tenant Base Rental or Net Operating Income was 15%, then the adjustment of Annual Minimum Rent as of the second Adjustment Date would only be 10% as opposed to 15%. For purposes of this provision, the term Net Operating Income' shall mean the sum of Gross Annual Revenue (as herein defined) less Operating Expenses (as herein defined). `Gross Annual Revenues' shall include cash or in kind payments received by Tenant from all sources related to the ownership and operation of the Premises, including, but not limited to, the Tenant Base Rental, license income, concessions, forfeited deposits and proceeds of rental interruption insurance, but shall exclude any reimbursement by a tenant of capital improvements made specifically for such tenant's premises. `Operating Expenses' shall include all customary and usual costs of operating the Leased Premises, including, but not limited to, taxes, insurance, maintenance, utilities, promotion management fees and similar costs of operation, as well as the Annual Minimum Rent payable to Landlord by Tenant hereunder. The calculation of Operating Expenses shall exclude debt service of any kind, return of equity or capital costs (i.e., capital replacements, subsequent tenant improvements, leasing commissions or other costs that may be amortized or depreciated under the provisions of federal tax law). The State of Net Operating Income of the Premises for calendar year 2001, which has been approved and accepted by Landlord, is attached hereto as Exhibit A and is incorporated herein by this reference.
2. Other Terms Unmodified. Except as otherwise expressly set forth herein, all terms and conditions of the Ground Lease are ratified, and remain unchanged and in effect.
3. Counterparts. This Amendment may be executed in any number of counterparts, provided each of the parties hereto executes at least one counterpart; each such counterpart hereof shall be deemed to be an original instrument, but all such counterparts together shall constitute but one Amendment.
[remainder of page intentionally blank]
-3-
O:tDirectorWorkelrlacethlerketplece Fifth Amendment 5-15-04 redline.DOC Exhibit 2
91 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Effective Date.
LANDLORD:
BELL GARDENS COMMUNITY
DEVELOPMENT COMMISSION F/K/A THE
BELL GARDENS REDEVELOPMENT
AGENCY, a public body corporate and politic
APPROVED AS TO FORM:
Arnold AlvarezfGlasman, City Attorney
ALA
MARTA C r 4°, crr1 c t R.v
By:
a.,./
Name: _'/Ivy /7 - dj ", & t A-5
Title: 6/-7 011,4-0
Date: -27
TENANT:
FLORENCE EASTERN ! . TPLACE LLC
a Delaware limited liab pany
By:
Name:
Title: 41/btajeD
Date: 9- le it
-4-
O:�DircnoAMukelplacetAfukeMlece Filth AmenJmeM 5-15A6 reJline.DOC Exhibit 2
92 LESSOR CONSENT AND ESTOPPEL CERTIFICATE
THIS LESSOR CONSENT AND ESTOPPEL CERTIFICATE (the "Consent and Estoppel") is made as of this 2+h. day of 5cpt-e,— 2006 ("Effective Date"), by the BELL GARDENS COMMUNITY DEVELOPMENT COMMISSION, a public body corporate and politic, previously known as the BELL GARDENS REDEVELOPMENT AGENCY ("Ground Lessor" or "Lessor") to and for the benefit of Florence Eastern Marketplace LLC. its successor and assigns ("Assignee").
RECITALS
A. Ground Lessor is the owner of that certain real property described in Exhibit A attached hereto together with all easements appurtenant thereto, and commonly known as the Bell Gardens Shopping Center, which is located on that portion of Lot A Tract No. 3562 in the City of Bell Gardens (the "Site").
B. Ground Lessor and Bell Gardens Associates, a California general partnership ("Associates"), as lessee, entered into that certain Ground Lease, dated as of September 1, 1989 as amended pursuant to Amendments listed on Exhibit B attached hereto, restated, renewed, modified or supplemented from time to time, pursuant to which Associates leased the Site from Ground Lessor.
C. Ground Lessor and Associates, as Developer, entered into that certain Disposition and Development Agreement, dated as of May 23, 1988 ("DDA").
D. BELL GARDENS ASSOCIATES, LLC a California limited liability company ("Assignor") and Florence Eastern Marketplace LLC ("Assignee") will be entering into a certain Assignment and Assumption of Ground Lease, pursuant to which Assignor will assign the Ground Lease to Assignee.
NOW THEREFORE, Ground Lessor hereby states, certifies, confirms, acknowledges, represents, warrants and agrees as follows:
1. Consent. Ground Lessor hereby consents to the assignment referenced above, of Assignor's right, title and interest in the Ground Lease to Assignee and the corresponding acceptance thereof and assumption of the Assignor's obligations, terms, covenants, conditions and agreements made under the Ground Lease by Assignee subject to all the terms, covenants, conditions and agreements set forth in the Assignment and Assumption Agreement and provided that Assignor shall not default in the performance of its obligations, terms, covenants, conditions and agreements under the Ground Lease at any time prior to the Effective Date.
2. No Waiver. Ground Lessor's consent to the assignment of Assignor's right, title and interest in and to the Lease set forth herein shall not be construed as a waiver of Ground Lessor's right to reasonably refuse consent to any future proposed assignment nor as a waiver of any other rights which Ground Lessor has under the terms of the Ground Lease upon the occurrence of any proposed or purported future assignments of the Ground Lease. 1 Exhibit 2 93
3. Validity of Ground Lease. The Ground Lease is valid and in full force and effect, in accordance with its terms. The Ground Lease has not been surrendered, canceled, terminated or abandoned, whether in writing or pursuant to a purported oral surrender, cancellation, termination or abandonment.
4. Lease Amendment. The Ground Lease has not been supplemented, modified or amended (orally or in writing) other than as disclosed on Exhibit B attached hereto. Attached hereto as Exhibit B is a true and complete copy of the Ground Lease and all modifications, amendments and supplements thereto.
5. No Assignment of Lease by Ground Lessor. Ground Lessor is presently the lessor under the Lease and, except for pledging the Site for financing purposes, has not assigned its fee estate or any right, title or interest therein. Ground Lessor recognizes Assignor as lessee under the Lease, and Ground Lessor has not received notice of any assignment of the Lease by Assignor.
6. No Termination. Ground Lessor has not commenced any pending action or sent any presently effective notices to Assignor (or received any presently effective notices from Assignor) for the purpose of terminating the Lease. Lessor is not presently entitled to terminate the Lease.
7. No Defaults. Ground Lessor has not given any notice of default of Assignor, other than as to any default(s) that have been cured. Lessor is not presently aware of any fact or circumstance that, with the passage of time or the giving of notice, or both, would constitute a default under the Ground Lease or the DDA.
8. Rent. All rent and other current charges, if any, have been paid under the Lease through and including the rent payable for each rent payment period that includes the Effective Date. As of the Effective Date, no rent or any other payments are presently due under the Lease.
The Annual Minimum Rent as defined in Article 3 of the Lease currently is $1,135,000.00.
Ground Lessor has not exercised its rights under Section 3.2.2.6 of the Ground Lease to conduct an audit of the Records to determine if all sums due under the Ground Lease have been paid. At such a time as Ground Lessor conducts such an audit, a determination may be made about sums that may be due under the Ground Lease and remain unpaid. Ground Lessor does not waive any rights to such additional sums by entering into this Consent. Ground Lessor further agrees that the non-payment of such additional sums, if any, does not constitute an event of default under the Ground Lease unless and until Ground Lessor has made a demand for such payment and there has been a refusal to pay such sums pursuant to the terms of the Ground Lease.
9. Term. The primary term of the Ground Lease expires September 1, 2023; the Ground Lease provides seven (7) options to extend such term for additional periods of ten (10) years each which shall remain available to Ground Lessee and no days of Default have been accumulated by Ground Lessee pursuant to Section 2.2 of the Ground Lease. 2 Exhibit 2 94
10. Loan. The Loan secured by the Ground Lessee interest complies with the terms of the Ground Lease.
11. Easements. All easements now in effect comply with Section 4.2 of the Ground Lease.
12. Agency Loan. The Agency Loan (as defined in the Ground Lease) has been paid in full and cancelled.
13. Assignee's Improvement Obligations. In consideration of Ground Lessor's consent to the assignment of the Ground Lease to the Assignee, the Assignee shall perform or cause to be performed certain improvements ("Assignee's Improvements") to the Leased Premises as more particularly defined herein. The Assignee's Improvements shall include some, but not necessarily all of the following: improved stonework to the buildings and structures, new paint to the buildings and structures, improvements to the existing parking facilities, or improvements to the landscaping at and around the Leased Premises, as determined by Assignee.
Assignee may hereafter propose other types of improvements that would constitute an Assignee Improvement by delivering written notice thereof to Lessor (an "Improvement Proposal"), which Improvement Proposal shall be subject to Lessor's consent, which consent shall not be unreasonably withheld or denied. In the event that Lessor does not respond to Assignee's Improvement Proposal within ten (10) days after receipt thereof, Lessor shall be deemed to have approved such Improvement Proposal. The cost of the Assignee's Improvements in the aggregate shall not be less than Two Hundred Fifty Thousand Dollars ($250,000.00) ("Assignee's Improvement Contribution"). Assignee shall provide copies of contracts and/or receipts for the work constituting Assignee's Improvements to the City's Community Development Director or his designee. Assignee's Improvements shall be constructed in compliance with all applicable local, state and federal codes, laws, ordinances and regulations.
Assignee intends to make more substantial improvements ("Major Improvements") in lieu of the Assignee Improvement Contribution provided solely if Assignee is able to relocate and or replace some of the current tenants of the Shopping Center with other tenants which have National or Regional brand -name recognition and which might help create more commercial activity at the Shopping Center. Ground Lessor and Assignee agree that such a change in the tenancy would be in the best interest of the Assignee and the Ground Lessor and both parties understand that in order to achieve this, a significant amount of time, money and other resources will be required. Cooperation from a few of the current Shopping Center tenants would be required and Ground Lessor acknowledges that such tenants may ultimately be unwilling to cooperate in order to effectuate such changes in the tenancy and/or the Shopping Center. The exact nature and extent of the Major Improvements shall be presented to Ground Lessor in writing ("Major Improvements Proposal") and shall be subject to Ground Lessor's consent, which consent shall not be unreasonably withheld or denied. Assignee shall have a period of twelve (12) months from the date of the Assignee actually taking title to the Ground Lessee's interest in and to the Ground Lease (the "12 Month Period") to construct or cause to be constructed the Assignee's Improvements or Major Improvements. In the event that Assignee fails to perform or cause to be performed either the Major Improvements or the Assignee's 3 Exhibit 2 95
Improvements to the full extent of the Assignee's Improvement Contribution amount, the Assignee shall pay to the Lessor a penalty equal to a) $250,000.00 less b) the amount actually expended by Assignee for Assignee's Improvements or Major Improvements during the 12 Month Period as and for the breach of terms of this Paragraph 2 ("Assignee's Penalty"), as Lessor's sole and exclusive remedy for such breach. The payment of Assignee's Penalty, if due, shall be paid to Lessor within thirty (30) days after expiration of the 12 Month Period. The Assignee's Penalty shall be in addition to any other damages, causes of action, or other available remedies afforded to the Lessor pursuant to the terms of the Ground Lease or available at law or equity for any other breach by the Assignee to the terms of the Ground Lease.
14. Defined Terms. All items not defined in this Consent shall have the same meaning ascribed to them in the Ground Lease.
15. Due Authorization, Execution, and Delivery. Ground Lessor is duly authorized to execute this Consent and Estoppel, and this Consent and Estoppel has been duly executed and delivered by Ground Lessor. No consent by any court, agency, bureau or other third party, governmental or non -governmental (other than any such consents that have been actually obtained), is required for Ground Lessor to execute and deliver this Consent and Estoppel.
16. Governing Law. This Consent and Estoppel Certificate shall in all respects be governed by, and construed in accordance with, the laws of the State of California. [END OF TEXT. SIGNATURES APPEAR ON FOLLOWING PAGES]
4 Exhibit 2 96
IN WITNESS WHEREOF, Ground Lessor has executed and delivered this Consent and Estoppel as of the Effective Date.
"Ground Lessor"
�2.
BELL GARDENS COMMUNITY
DEVELOPMENT COMMISSION
By: John Ornelas, Executive Director
By: Gilbert Livas, Community Development
Director
"Lessee/Assignee"
By:
APPROVED AS TO FORM:
Arnold Alvarez-G/lasman, City Attorney
ATTEST:
Marta Zer'eno, City Clerk
5 Exhibit 2 97
EXHIBIT A
The land referred to in this policy is situated in the State of California, County of Los Angeles, and is described as follows:
Parcels 1 thru 15 inclusive of Parcel Map No. 20044 in the City of Bell Gardens, County of Los Angeles, State of California, as recorded in Book 244, Pages 18 through 23 inclusive of Parcel Maps, in the Office of the County Recorder of said county.
Except therefrom all oil, gases, minerals and hydrocarbon substances in and under said land as reserved in various deeds of record, one of them being registered on June 14, 1945 as Document No. 10090-N of Torrens.
Also except therefrom any and all oil, gases, minerals and hydrocarbons rights previously reserved in deeds.
6 Exhibit 2 98
THIRD AMENDMENT TO BELL GARDENS
SHOPPING CENTER GROUND LEASE
THIS THIRD AMENDMENT TO BELL GARDENS SHOPPING CENTER GROUND LEASE ("Amendment"), is made and entered into as of March 19, 2002, by and between BELL
GARDENS COMMUNITY DEVELOPMENT COMMISSION F/K/A THE BELL GARDENS REDEVELOPMENT AGENCY, a public body corporate and politic (hereinafter "Landlord"), and BURNHAM PACIFIC OPERATING PARTNERSHIP, L.P., a Delaware limited partnership (hereinafter, "Tenant").
RECITALS:
A. Landlord and Bell Gardens Associates, a California general partnership ("Original Tenant") entered into that certain Bell Gardens Shopping Center Ground Lease dated as of September 1, 1989, as evidenced by that certain Memorandum of Lease by and between Landlord and Original Tenant and recorded on December 20, 1989 in the Official Records of Los Angeles County, California as Instrument No. 89-2048053, as amended by that certain First Amendment to Bell Gardens Shopping Center Ground Lease and Disposition and Development Agreement dated as of March 20, 1992, by and between Landlord and Original Tenant, as assigned by that certain Assignment of Seller's Interest in Lease and Assumption Agreement dated by and between Original Tenant and HPBA II - Bell Gardens Associates, L.L.C. ("HPBA"), as further amended by that certain Second Amendment to Bell Gardens Shopping Center Ground Lease dated as of , 1997, by and between Landlord and HPBA, and as further assigned by that certain Assignment and Assumption of Seller's Interest in Ground Lease dated December 31, 1997 by and between HPBA and Tenant, as further amended by that certain Lessor Consent and Estoppel Certificate and Amendment to Ground Lease dated as of March _, 2000, by and between Landlord and Tenant (as amended and assigned, the "Ground Lease"), which Ground Lease respects certain real property commonly known as Bell Gardens Shopping Center, located in Bell Gardens, California and as more particularly described therein (the "Premises"). Unless otherwise defined herein, each capitalized term used herein shall have the meaning ascribed thereto in the Ground Lease.
B. Landlord and Tenant desire to amend the Ground Lease, on the terms and subject to the conditions set forth below.
NOW, THEREFORE, in consideration of the foregoing premises, the mutual covenants and conditions contained herein, and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Landlord and Tenant hereby agree as follows:
1. Operation Period: Annual Minimum Rent and Annual Percentage Rent. (a) Effective on the execution and delivery of this Amendment, the first paragraph of Section 3.2.1 of the Ground Lease is hereby deleted in its entirety and the following language is substituted in lieu thereof to read as follows:
I)allas4 553859 v 4, 46405.00003
Exhibit 2 99
'Section 3.2A: Annual Minimum Rent. The Annual Minimum Rent payable for each Lease Year, or any portion thereof, during the Operation Period shall be $1,135,000.00, with such amount to be thereafter increased every five years on the first day of April of such year (e.g., April 1, 2007; April 1, 2012, etc.) by the greater of (i) ten percent (10%) over the annual amount for the then ending 5 -year period or (ii) the lesser of (x) the rate of increase in the total base rental ('Tenant Base Rental') paid by all of the tenants at the Leased Premises for the then ending 5 -year period or (y) the rate of growth of the Leased Premises' Net Operating Income (as such term is herein defined) for the then ending 5 -year period. For example: (1) if over a 5 -year period the Tenant Base Rental increases by 15% and the Net Operating Income increases by 12% then the Annual Minimum Rent hereunder would increase by 12%; (2) if over a 5 -year period the Tenant Base Rental increases by 11% and Net Operating Income increases by 13%, then the Annual Minimum Rent hereunder would increase by 11%; and (3) if over a 5 -year period the Tenant Base Rental increasesby 8% and Net Operating Income increases by 9%, the Annual Minimum Rent hereunder would increase by 10%. Provided, however, that if during any 5 -year period the rate of growth of Tenant Base Rental and Net Operating Income are both less than 10%, then for purposes of the subsequent 5 -year period Tenant may "look back" to the earlier 5 -year period so that the cumulative increase in Annual Minimum Rent does not exceed the actual growth in Tenant Base Rental and Net Operating Income for that 10 -year period. As an example, if over the initial 5 -year period Tenant Base Rental and Net Operating Income growth were both 0% (which resulted in an increase of 10% in Annual Minimum Rent in accordance with the formula set forth above), but during the next 5 -year period the lesser of the growth in Tenant Base Rental or Net Operating Income was 15%, then the second escalation for the 11th year of the Lease Term would only be 10% as opposed to 15%. For purposes of this provision, the term Net Operating Income' shall mean the sum of Crross Annual Revenue (as herein defined) less Operating Expenses (as herein defined). 'Gross Annual Revenues' shall include cash or in kind payments received by Tenant from all sources related to the ownership and operation of the Premises, including, but not limited to, the Tenant Base Rental, license income, concessions, forfeited deposits and proceeds of rental interruption insurance, but shall exclude any reimbursement by a tenant of capital improvements made specifically for such tenant's premises.
Operating Expenses' shall include all customary and usual costs of operating the Leased Premises, including, but not limited to, taxes, insurance, maintenance, utilities,'promotion, management fees and similar costs of operation, as well as the Annual Minimum Rent payable to Landlord by Tenant hereunder. The calculation of Operating Expenses shall exclude debt service of any kind, return of equity or capital costs (i.e., capital replacements, subsequent tenant improvements, leasing commissions or other costs that may be amortized or depreciated under the provisions of federal tax law).'
(b) Following the execution and delivery of this Amendment, Section 3.2.2 of the Ground Leas•
e (and all subsections of Section 3.2.2 of the Ground Lease) regarding Annual Percentage Rent is hereby deleted in its entirety. Accordingly, all other references in the Ground Lease to Annual Percentage Rent are hereby deleted in their entirety.
Dallas4 553859 v 4, 46405,00003
Exhibit 2
100 2
2. Option to Purchase. Following the execution and delivery of this Amendment, Tenant shall no longer have the option to purchase the fee title to the Leased Premises as set forth in Section 16.19 of the Ground Lease, and such section is hereby deleted in its entirety.
3. Maintenance of the Premises. Following the execution and delivery of this Amendment and as a clarification to Section 6.2 of the Ground Lease, Tenant covenants to maintain the Premises in a manner consistent with the maintenance standards of other first-class shopping centers in comparable markets.
4. Options to Extend. Following the execution and delivery of this Amendment, Section 2.2 of the Ground Lease is hereby amended to provided that Tenant shall have the option to extend the original term of the Ground Lease for "seven (7) additional periods of ten years each" as opposed to "six (6) additional periods of ten years each". All other terms and provisions of Section 2.2 shall remain as originally set forth therein.
5. Tenant Participation in Condemnation Proceedings. Following the execution and delivery of this Amendment, Section 12.3 of the Ground Lease is hereby amended to add the following sentence directly after the first sentence therein: "In the event of a Total Taking or Substantial Taking, Tenant shall have the right to participate in any condemnation proceedings relating thereto as a party in interest, subject to applicable law." All other terms and provisions of Section 12.3 shall remain as originally set forth therein.
6. Other Terms Unmodified. Except as otherwise expressly set forth herein, all terms and conditions of the Ground Lease are ratified, and remain unchanged and in effect.
7. Counterparts. This Amendment may be executed in any number of counterparts, provided each of the parties hereto executes at least one counterpart; each such counterpart hereof shall be deemed to be an original instrument, but all such counterparts together shall constitute but one Amendment.
[remainder of page intentionally blank]
Dallas4 553659 v 4, 46405.00003
Exhibit 2
3 101
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.
LANDLORD:
BELL GARDENS COMMUNITY
DEVELOPMENT COMMISSION F/K/A THE BELL
GARDENS REDEVELOPMENT AGENCY,
a public body corporate and politic
By:
Nam
Title:
TENANT:
r,e4� 4etEs'
BURNHAM PACIFIC OPERATING
PARTNERSHIP, L.P., a Delaware limited partnership
By: Burnham Pacific Properties, Inc.,
its general partner
By:
Name:
Title:
APPROVED AS TO FORM:
LEAL & OLIVAS
►A. 1
Juan Ca ez, Commission Counsel
Dallas4 553859 v 4, 46405.00003
Exhibit 2 102 4
GROUND LESSOR ESTOPPEL CERTIFICATE
JULY 30, 1997
Deutsche Bank AG, New York Branch
31 West 52nd Street
New York, NY 10019
HPBA II - Bell Gardens Associates, L.L.C.
c/o Summit Commercial Properties, Inc.
300 Continental Blvd, Suite 565
El Segundo, CA 90245
Attention: Mr. Jack Mahoney
Subject: Bell Gardens Ground Lease dated as of September 1, 1989 by and between the Bell Gardens Redevelopment Agency, as lessor, and Bell Gardens Associates, a California general partnership, as lessee ("Ground Lessee"), as amended by First Amendment to Bell Gardens Shopping Center Ground Lease and Disposition and Development Agreement dated as of March 20, 1992 (as so amended, the "Ground Lease"), with respect to the premises commonly known as "Bell Gardens Shopping Center" (the "Property").
Gentlemen:
The undersigned ("Ground Lessor") understands that (I) HPBA II - Bell Gardens Associates, L.L.C. ("Buyer"), shall be acquiring the leasehold interest under the Ground Lease, and (ii) Deutsche Bank AG, New York Branch ("Lender") shall be making a loan (the "Loan") to Buyer in connection with such acquisition. Ground Lessor hereby acknowledges that, as collateral security for the Loan, Buyer has or will mortgage, transfer and assign to Lender all of Buyer's right, title and interest in and to the Ground Lease pursuant to a certain First Deed of Trust, Assignment of Rents, Fixture Filing and Security Agreement (the "Deed of Trust").
In connection therewith, Ground Lessor hereby acknowledges and agrees as follows:
1. The Ground Lease has not been amended, modified, assigned or extended, and no mortgages or deeds of trust currently encumber the Ground Lessor's fee interest in the Property except as follows: First Amendment to Bell Gardens Shopping Center Ground Lease and Disposition and Development Agreement dated as of March 20, 1992, by and among Ground Lessor and BeII Gardens Associates, a California general partnership, and Memorandum of Lease recorded on December 20, 1989 in the Official Records of Los Angeles County, California as Instrument No. 89-2048053.
2. The Ground Lease does not contain any options to purchase, rights of first refusal to purchase or any similar provisions regarding Ground Lessor's acquisition of Ground Lessee's interest in the Property. Except as set forth in Section 16.19 of the Ground Lease, the Ground Lease does not contain any options to purchase, rights of first refusal to purchase Exhibit 2
103
Estoppel Certificate
July 30, 1997
or any similar provisions regarding Ground Lessee's acquisition of Ground Lessor's interest in the Property.
3. The initial term of the Ground Lease commenced on September 1, 1989 and will terminate on September 1, 2023, subject to Ground Lessee's option to extend the term for six (6) additional periods of ten (10) years each. Annual rent during each option period shall increase commencing on September 1, 2023, and on every fifth anniversary of such date thereafter by an amount equal to the cumulative total resulting from a four percent (4%) per year increase since the last such increase.
4. The current monthly rent payment under the Ground Lease is SEVENTY
THREE THOUSAND SIX HUNDRED EIGHTY THREE DOLLARS AND NO CENTS ($73,683.00.) No advance rents have been prepaid. In addition to the monthly rent payments, percentage rent is payable on a quarterly basis. As of the date of execution of their Estoppel Certificate, the following sums are due and payable under the terms of the Ground Lease or the Disposition and Development Agreement:
a. As of August 5, 1997, the sum of FIVE HUNDRED SIXTEEN THOUSAND FIVE HUNDRED FIFTY EIGHT AND TWENTY-THREE CENTS ($516,558.23) and as for past due rent and other charges.
b. As of June 30, 1997, the sum of ONE MILLION THREE HUNDRED
FIFTY THREE THOUSAND TWO HUNDRED SIXTY-SEVEN DOLLARS AND NO CENTS ($1,353,267.00) which consists of the Agency's Loan, as defined in Section 5.7 of the Ground Lease and Section 6.6 of the Disposition and Development Agreement, plus accrued interest at the annual rate of six percent (6%). Daily interest will continue to accumulate at the stated rate until said sum is paid in full. Upon payment to Ground Lessor of $1,353,267 plus interest at the annual rate of six percent (6%) from June 30, 1997 through the date of such payment, the Agency's Loan shall be deemed paid in full and discharged, and no other sums shall be or become payable in connection with the Agency's Loan.
5. Except for the obligations set forth in paragraph 4, above, Ground Lessee's obligations under that certain Disposition and Development Agreement dated as of May 23, 1988 by and between the undersigned and Ground Lessee (as successor -in -interest to Hopkins Development Co., L.P., a Delaware limited partnership) have been satisfied in full.
Ground Lessee's construction and development obligations under the Ground Lease, including, but not limited to, the obligations set forth in Exhibit "C" to the Ground Lease entitled "Scope of Development," and Exhibit "D" to the Ground Lease entitled "Schedule of Performance," have been satisfied in full. The Property is in full compliance with that certain Site Plan attached to the Ground Lease as Exhibit "B". Grounds Lessee and the Property are in full compliance with all of the measures set forth in Exhibit "H" to the Ground Lease entitled "Mitigating Measures." The 'Cessation Event' has occurred and the 'Sales Tax Payment' is no longer required under Section 9.30 of the Disposition and Development Agreement. Section
9.30 of the Disposition and Development Agreement is no longer of any force and effect.
Exhibit 2
104
Estoppel Certificate
July 30, 1997
6. The Certificate of Completion referenced in Section 7.2 of the Ground Lease and Section 6.5 of the Disposition and Development Agreement has heretofore been issued.
7. The acquisition by Buyer and the imposition of the Deed of Trust as a lien, junior to the Ground Lessor's interest in the underline fee, on the leasehold interest under the Ground Lease does not constitute a default under the Ground Lease, and the undersigned hereby consents thereto provided all sums set forth in paragraph 4, above, are paid in full prior to the acquisition by Buyer.
8. The Disposition and Development Agreement has been terminated and is of no force and effect, except as expressly provided in Section 7.5 of the Disposition and Development Agreement.
9. The Ground Lease is in full force and effect, and to the best of Ground Lessor's knowledge, Ground Lessor has no existing claims, defenses or offsets under the Ground Lease against Buyer, as lessee under the Ground Lease, no uncured default exists under the Ground Lease, and no event has occurred that would, except for the lapse of time, the giving of notice or both, constitute a default under the Ground Lease except for the monetary defaults set forth in paragraph 4, above.
10. The Ground Lessor's approval rights over any Leasehold Mortgage under Section 7.2 of the Ground Lease are limited to the matters expressly described in clauses (a) through (e) of said Section 7.2.
11. Ground Lessor will deliver to Lender at the address listed above, or at any address delivered in wiring to Ground Lessor by Lender, a copy of all default notices Ground Lessor delivers to or receives from Buyer.
The statements contained herein are made for the purposes of inducing (I) Buyer to acquire the leasehold interest under the Ground Lease, and (ii) Lender to make the Loan, and may be relied upon for such purpose by Buyer, Lender and their respective successors and assigns. Nothing contained in this document amends or supersedes the provisions of the Ground Lease. In the event of conflict between the provisions of this document and the Ground Lease, the provisions of the Ground Lease shall control.
Very Truly Yours,
THE BELL GARDENS REDEVELOPMENT AGENCY, a
public body c•rporate and public
By:
Nabar Enrique a Inez
Executive Director
Exhibit 2
105
07/30/97 WED 22:03 FAX 648 7251
SUMMIT COMM
LEASE TBIS SECOND AMENDMENT TO BELL GARDEN SHOPPING CENTER GROUND1997, by and Amtm�mt )• is made and entered into as of etween BELL GARDENS REDEVELOPMENT AGENCY a public body
corporate and politic (hereinaft rd"), and HFBA II -
ASSOCIATES, L.L.C., a Delaware limited liability company (h� Tenant 8ECLtALA
A. Landlord and Bell Glens Associates, a California general ("Original Tenant") entered into that certain Bell Gardens Shopping partnership dated as of September I, 1989, as amended by that
. oPP�$ Center Ground Lease
Shopping Center Ground Lta:se eta First Amendment � Bell Garden March �. 1992, by and
� • tuod Disposition and Development � �� as of
teen Landlord and Original Tenant, and that certain
Memorandum of Lease by and between Landlord and Original December 20, 1989 in the Official Records of Los Tgoaat and recorded on Records") as Instrument No. 89-204853, Angeles County, California (the �0�� Seller's Interest in Lease and and as assigned by that coin Assignment of Original Tenant and T Assumption Agreement of even date herewith by Tenant (as amended and assigned, the "Ground Lease), and between Lease respects certain ,� property. commonly l�wu as Bell Shopping ")i which Ground
located in Bell Gardens, California and as more particularly Gaie described Serein (the Center.
"Premises"). Unless otherwise defined herein, each capitalized therein the weaning ascribed thereto in the Ground IPge. term used herein shall have B. Landlord and Tenant desire CO amend the Ground tea
subject to the conditions set forth below. qe, on the reline and NOW, THEREFORE, in consideration of the foregoing premises, the mutual covenants and conditions contained herein, and other
receipt and adequacy of which are good and valuable consideration, the as follows: hereby aclmoarledged. Landlord and Tenant hereby agree con 1. II� ions Lioensac nd Subleam Notes' fag to
in co the Ground Lease, including, without limitation,anything p y� o set forth
Section 8.2 of the Ground Lease, Landlord and Tenant hereby a m entitled at any time to enter into licenses, subleases and that Tenant sra be "Subleases") of any contiguous space at the Remises on its (collectively, en
thousand (15,000) square feet without the necessity of flu o not more � sn
thereto; provided. however, that is no event shall Tenant obtaining landlord's consent the sublessee thereunder engages in caret into any Sublease in which in sublessee
with S any of the activities which are prohibited at the Premises Section 7 of that certain Declaration of Covenants, Conditions and •
770651_!
1. Exhibit 2
106
• 07/30/97 WED 22:04 FAX 648 7251
SUMMIT COMM
PAGE 3.,q
Establishment of Restrictions and Grants of
recorded in the Official Records a �talis dated as of September 1, 1989 and 'Instrument No. 89-2048054.
2. a to t �
of the Ground Lease to Tenant. Landlord hereby consents to the assignment
3. Qber____Terins Litaggdifiecl. E tcept as otherwise
terms and conditions of the Ground Lease exp sly set forth herein, all are ratified, and ' mtnain unchanged and in effect.
4. cluaram. This Amendment may be wed is any cotmterpsres, provided each of the parties hereto executes at least one her of counterpart hereof shall be deemed m be an original instrument, but all such counterpartscounterpart; such
together shall aonstinare but one Amendment.
IN WITNESS WHEREOF, the parties hereto have executed this date first above written. Agreement as of the
BELL GARDENS REDEVELOPMENT AGENCY.
a public body corporate and politic
By:
Name:
Tide:
7f30/17
[SIGNATURE BLOCK CONTINUED ON NEXT PAGE]
2. Exhibit 2
107
1.tiSTAMERICAN TITLE COMPMY OF LA.
"SUBDIVISION" . •
RECORDING REQUESTED BY, AND
WHEN RECORDED MAIL TO:
Brown, Winfield & Canzoneri, Inc.
300 S. Grand Ave, Suite 1500
Los Angeles, California 90071
Attn: Steven Abram, Esq.
92- 9342'7 L RECORos
RECD J 01N OffiCIoFFicF
RECON E S COUNT
O
LOS ANG
CALIFORNIA
tMN. 4 P.M. MAY 221992
31 PAST.
SPACE ABOVE FOR RECORDER'S USE
FIRST AMENDMENT TO BELL GARDENS SHOPPING CENTER GROUND LEASE
AND DISPOSITION AND DEVELOPMENT AGREEMENT
This First Amendment ("First Amendment") to Bell Gardens Shopping Center Ground Lease and Disposition and Development Agreement is dated for identification purposes as of March 20, 1992, and is entered into by and between the following
(collectively, the "Parties"): THE BELL GARDENS REDEVELOPMENT AGENCY, a public body corporate and politic ("Landlord"), and BELL GARDENS ASSOCIATES, a California general partnership ("Tenant").
This First Amendment is made and entered into with reference to the following facts:
RECITALS
A. The Parties have previously entered into that certain Bell Gardens Shopping Center Ground Lease, dated for identification purposes as of September 1, 1989 (the "Ground Lease"), a memorandum of which was recorded in the Official Records of Los Angeles County, California, on December 20, 1989 as Instrument No. 89- 2048053. The Ground Lease covers that certain real property in the County of Los Angeles, State of California legally described on Exhibit "1" attached hereto, together with all buildings, structures, improvements and fixtures now or hereafter erected thereon ("Shopping Center").
B. All of the property subject to the Ground Lease is also subject to that certain Disposition and Development Agreement dated as of May 23, 1988 for identification purposes ("DDA") entered into by and between Landlord and Hopkins Development Co., L.P., a Delaware limited partnership ("Hopkins"). Tenant acquired Hopkins' rights and obligations under the DDA by means of that certain Assignment and Assumption of Disposition and Development Agreement and Consent of Agency, dated as of September 1, 1989, and recorded in the Official Records of Los Angeles County, California on December 20, 1989 as Instrument No. 89-2048052.
C. Pursuant to Section 5.7 of the Ground Lease and Section
6.6 of the DDA, Landlord has made a loan to Tenant in the current outstanding principal amount of Nine Hundred Thousand Dollars ($900,000) ("Agency's Loan"). Both the Ground Lease and the DDA 1:\DOCS\SEC\ABRAM\0580AABG.ALG
—1-
05/21/92-1
Exhibit 2 108
provide that until the entire outstanding balance of the Agency's Loan, with interest as provided therein, is repaid in full, the Agency is entitled to participate in any Net Sale Proceeds and Net Refinancing Proceeds (the "Agency Participation") as more particularly described in the Ground Lease and the DDA.
D. The Chase Manhattan Bank, N.A., a national banking
association ("Chase"), has, as of the date of this First Amendment, advanced Ten Million Four Hundred Seventy -Eight Thousand Five Hundred and Twenty -Two Dollars ($10,478,522) to Tenant pursuant to a loan ("Project Loan") made to Tenant by Chase. The terms of the Project Loan provide for a maximum principal amount outstanding of Eleven Million Eight Hundred Ninety -Six Thousand Dollars ($11,896,000). The DDA and Ground Lease require that the proceeds of the Project Loan are to be used by Tenant to fund construction of the Improvements on the Leased Premises and related costs and for no other purposes. The Project Loan is secured by, inter alia, that certain Leasehold Deed of Trust, Assignment of Rents and Security Agreement dated September 29, 1989, and recorded on December 20, 1989, as instrument No. 89-2048055 of the Official Records of Los Angeles County, California ("First Trust Deed").
Tenant and Chase have executed, delivered and recorded, or intend in the next. several weeks to execute, deliver and record that certain First Modification to Leasehold Deed of Trust, Assignment of Rents and Security Agreement dated as of February 28, 1992 ("First Trust Deed Modification").
E. Tenant is currently in default of its obligations under the Ground Lease, the DDA and the Project Loan.
F. Chase and Tenant are considering restructuring the
Project Loan and other financings in effect between Chase and entities affiliated with Tenant. The proposed refinancing would involve (i) additional advances by Chase to Tenant under the Project Loan, a portion of which are to be used by Tenant to fund costs and obligations of affiliates of Tenant in connection with other projects, and (ii) the recordation against the Leased Premises by Chase of (x) a second leasehold deed of trust (the "Second Trust Deed") as additional security for the obligations of San Pablo Associates ("San Pablo"), an affiliate of Tenant, to Chase under a revolving construction loan (maximum principal amount outstanding not to exceed $15,226,275.19) made by Chase to San Pablo in connection with that certain shopping center project constructed and operated by San Pablo and located in the City of San Pablo, Contra Costa County, California, and (y) a third leasehold deed of trust (the "Third Trust Deed") as additional security for a $700,000 operating loan made by Chase to Tenant.
G. The discharge ("Discharge") of petroleum from gasoline tanks which were previously located under that portion of the Leased Premises depicted on the Site Plan as Pad "A" ("Pad A") has been discovered under Pad A.
I:\DOCS\SEC\ABRAM\0580AABG.ALG
—2— 05/21/92-1
Exhibit 2
109 92_ .93642
H. The Parties wish to amend the Ground Lease and the DDA, as provided hereinbelow, to (i) permit the advance of funds to Tenant under' the Project Loan for certain limited expenditures other than the construction of the Improvements on the Leased Premises, (ii) permit recordation of the First Trust Deed Modification, Second Trust Deed and Third Trust Deed, (iii) provide certain limited exceptions to Tenant's obligation to pay Landlord a percentage of the Net Sale Proceeds and the Net Refinancing Proceeds which may accrue in connection with the execution, delivery and recordation of the First Trust Deed Modification, Second Trust Deed and the Third Trust Deed and certain other permitted transfers and refinancings as expressly specified hereinbelow, (iv) provide for the implementation of certain specified soil remediation measures on Pad A, (v) reflect the agreement between the Parties respecting Tenant's obligation to pay rent on Pad A in light of the remediation work to be performed as provided in (iv) above, and (vi) provide a schedule for payment by Tenant of all due and unpaid Rent under the Ground Lease.
NOW, THEREFORE, for valuable consideration, the receipt of which is hereby acknowledged, the Parties hereby supplement and amend the Ground Lease and the DDA as provided hereinbelow.
AGREEMENT
1. Consent to First Trust Deed Modification, Second Trust Deed and Third Trust Deed; Landlord's Priority. Landlord hereby consents to recordation of the First Trust Deed Modification, the Second Trust Deed and the Third Trust Deed, on the condition that:
(i) each such instrument shall expressly acknowledge that it encumbers only the Tenant'sinterest under the Ground Lease and does not encumber or constitute any sort of lien upon Landlord's fee interest in the Leased Premises, and each such instrument shall further expressly acknowledge that Chase's rights under such instrument are subject to the terms of the Ground Lease and the DDA, as amended by this First Amendment, including without limitation Landlord's rights thereunder to receive the Agency Participation, and (ii) Landlord shall have received a letter from Chase executed by an authorized representative of Chase (x) consenting to this First Amendment and acknowledging each of the above matters, and (y) representing to Landlord the "Sale Deduction Amount" (as defined in Section 3 below) as of the date of this First Amendment. Reference is hereby made to that certain Collateral Assignment of Development and Disposition Agreement dated as of September 29, 1989 (the "DDA Assignment") made by Tenant to Chase pursuant to which Tenant collaterally assigned to Chase all of its right, title and interest in and to the DDA as additional security for the Project Loan. Landlord consented to the DDA Assignment pursuant to the Consent and Agreement dated September 7, 1989 (the "Agency Consent"). Landlord hereby reaffirms its consent to Tenant's collateral assignment of the DDA, as amended by this First Amendment, to Chase as additional security I:\DOCS\SEC\ABRAM\0580AABG.ALG —3-
92- 936427
05/21/92-1
Exhibit 2
110
for the Project Loan subject to the terms and conditions set forth in the Agency Consent excepting Sections ld and le thereof.
Landlord hereby further consents to Tenant's collateral assignment of the DDA, as amended by this First Amendment, to Chase as additional security for the obligations of Tenant secured by the Second. Trust Deed and the Third Trust Deed, subject to the terms and conditions set forth in the Agency Consent excepting Sections ld and le thereof.
2. Exempt Transfers. Notwithstanding the provisions of
Section 5.7 of the Ground Lease and Section 6.6 of the DDA, Tenant shall not be obligated to pay to Landlord any portion of any Net Sale Proceeds or Net Refinancing Proceeds which result from the following transfers and refinancings ("Exempt Transfers"):
(a) execution, delivery and recordation of the First
Trust Deed Modification;
(b) execution, delivery and recordation of the Second
Trust Deed;
(c) execution, delivery and recordation of the Third
Trust Deed; and
(d) the transfer to Chase or any wholly -owned subsidiary of Chase of Tenant's rights and interest under the Ground Lease, as amended by this First Amendment, by reason of any judicial or non - judicial foreclosure of the First Trust Deed (as amended by the First Trust Deed Modification if and when the same is executed, delivered and recorded), the Second Trust Deed or the Third Trust Deed, or pursuant to any bona fide deed -in -lieu executed by Tenant and delivered to Chase or any wholly -owned subsidiary of Chase in connection with the loans secured by the above -referenced Trust Deeds.
3. Non -Exempt Sale. For purposes of Section 5.7.3(c) of the Ground Lease and the first paragraph of Section 6.6.3(c) of the DDA, the phrase "financing secured by the Leased Premises" and the phrase "financing secured by the Site" shall be deemed not to refer to any of the following:
(a) any amounts, obligations or monies secured by the First Trust Deed, as may be amended by the First Trust Deed Modification, to the extent that the proceeds of such funds are not used for the construction of the initial Improvements within the Shopping Center;
(b) any amounts, obligations or monies secured by the Second Trust Deed; or
(c) any amounts, obligations or monies secured by the Third Trust Deed.
I:\DOGS\SEC\ABRAM\0580AABG.ALG — 4 —
05/21/92-1
Exhibit 2
111 92- 936427
Tenant hereby represents and warrants to Landlord that as of the date of this First Amendment the outstanding principal balance of the loan secured by the First Trust Deed is Ten Million Four Hundred Seventy -Eight Thousand Five Hundred and Twenty -Two Dollars ($10,478,522) (the "Sale Deduction Amount"), and the entire amount of such loan has been applied to project costs incurred in connection with construction of the initial Improvements within the Shopping Center. The only additional advances contemplated by the parties with respect to construction of the initial Improvements within the Shopping Center after the date of this First Amendment are: (i) advances used to construct additional tenant improvements within certain space within the Shopping Center which has yet to be occupied and the construction of the Improvements to be located on Pad A, (ii) advances used to pay certain outstanding mechanics' liens recorded against the Shopping Center or Tenant's interest therein by contractors and/or subcontractors performing improvement work on the Shopping Center, which advances may be up to the amount of Three Hundred and Seventy Five Thousand Dollars ($375,000), and (iii) advances to be used to cure delinquent interest payments in the loan secured by the First Trust Deed, which are in the approximate amount of Five Hundred and Twenty Five Thousand Dollars ($525,000). Tenant recognizes and agrees that the advances described in (iii) in the preceding sentence are not funds used in construction of the Improvements within the Shopping Center and will not constitute a deduction from gross sale proceeds or gross refinancing proceeds for purposes of calculating the Agency Participation. Landlord agrees not to unreasonably withhold its consent to any further modification of the First Trust Deed required by Chase to secure reasonable advances to be made by Chase to fund construction of the Improvements to be located on Pad A.
4. Non -Exempt Refinancing. Notwithstanding any definition in the Ground Lease to the contrary, the term "Leasehold Mortgage" as used in Section 5.7.3(h) of the Ground Lease and Section
6.6.3(h) of the DDA shall be deemed not to refer to any of the following:
(a) any amounts, obligations or monies secured by the First Trust Deed, as it may be amended by the First Trust Deed Modification, to the extent that the proceeds of such funds are not used for the construction of the initial Improvements within the Shopping Center;
(b) any amounts, obligations or monies secured by the Second Trust Deed; or
(c) any amounts, obligations or monies secured by the Third Trust Deed.
This paragraph 4 affects the term "Leasehold Mortgage" only as it is used in Section 5.7.3(h) of the Ground Lease and Section
6.6.3(h) of the DDA, and shall not affect the meaning of the term I:\DOCS\SEC\ABRAM\0580AABG.ALH -5— 05/21/92-1
92- 936427
Exhibit 2
112
"Leasehold Mortgage" as such term is used elsewhere in the Ground Lease or the DDA.
5. Carry -Forward of Chase Financing. Upon a sale or
refinancing by Chase or any wholly -owned subsidiary of Chase following any Exempt Transfer described in Section 2(d) hereof, Chase or such wholly -owned subsidiary, as Tenant, shall be entitled to deduct an amount equal to the Total Project Loan (as hereinafter defined) for purposes of computing "Net Sale Proceeds" or "Net Refinancing Proceeds" in lieu of the amounts specified in Sections
5.7.3 (c) (1) and 5.7.3 (h) (ii) (A) of the Ground Lease and Sections
6.6.3(c) (1) and 6.6.3(h) (2) (A) of the DDA, inasmuch as the First Trust Deed (as amended by the First Trust Deed Modification) may have been satisfied or otherwise deemed to have been discharged by virtue of any Exempt Transfer described in Section 2(d) hereof. As used herein, "Total Project Loan" shall mean the Sale Deduction Amount plus the sum of the advances described in clauses (i) and (ii) of the next to last sentence of Section 3 hereof. "Total Project Loan" shall not include any advances made pursuant to clause (iii) of the next to last sentence of Section 3 hereof.
6. Payment re Delinquent Rent and Interest. /Upon the
earlier of: (i) recordation of the First Trust Deed Mod fication, Second Trust Deed and/or the Third Trust Deed, or (ii) June i, 1992, Tenant shall pay to Landlord the amount of Forty -Two Thousand Three Hundred and Forty -Three Dollars and Thirty -Five Cents ($42,343.35) (the "Delinquency Amount"), which Landlord shall accept as payment in full for all due and unpaid Annual Minimum Rent and Annual Percentage Rent ("Unpaid Rent") and interest on delinquent Unpaid Rent which is due under the Ground Lease as of May 31, 1992 ("Reference Date"). The Delinquency Amount includes (i) Annual Percentage Rent due as of the Reference Date, in the amount of $18,104, and (ii) Annual Minimum Rent due for Pad A as of the Reference Date, in the stipulated amount of Eighteen Thousand Four Hundred Twenty Dollars and Eighty -Five Cents ($18,420.85).
Nothing in this paragraph shall be deemed to waive or otherwise affect Landlord's right to collect Rent, interest on delinquent Rent, or other obligations accruing or payable after the Reference Date. The Delinquency Amount does not include late charges owing pursuant to Section 3.3 of the Ground Lease as of the Reference Date.
7. Payment re Late Charges. Landlord and Tenant agree that the amount of unpaid and accrued late charges owing pursuant to Section 3.3 of the Ground Lease is Forty -Four Thousand Three Hundred and Fifty -Nine Dollars ($44,359.) (the "Late Charge Obligation") as of the Reference Date. Tenant shall satisfy the Late Charge Obligation by payment to Landlord, in eighteen equal monthly installments, due on the first day of each month, commencing on June 1, 1992; provided, that if any such monthly installment or other payment of Rent required under the Ground Lease, as amended, is not paid when due, then the entire unpaid I:\DOCS\SEC\ABRAM\0580AABG.ALG
- 6 - 05/21/92-1
Exhibit 2
113 92- 936427
balance of the Late Charge Obligation shall become immediately due and payable and the failure to pay the same shall constitute an Event of Default under the Ground Lease. Nothing in this paragraph shall be deemed to waive or otherwise affect Landlord's right to collect late charges accruing after the Reference Date.
8. Pad A Releases. Except as to the payments specified in paragraphs 5 and 6 above, Landlord hereby releases Tenant from any obligation to pay any Unpaid Rent, interest or late charges accruing prior to the Reference Date with respect to Pad A. Except with respect to Landlord's obligations under paragraph 9 hereinbelow, Tenant hereby releases Landlord from any Losses and Liabilities which may have arisen or which may arise from or relate to (i) the condition of Pad A, or (ii) construction or remediation activities on Pad A undertaken prior to the date hereof. The foregoing releases shall apply to both known and unknown obligations, and known and unknown Losses and Liabilities with respect to the Pad A obligations described above, and, with respect to these specific releases (but not other matters), the Parties hereby waive the application, if any, of Section 1542 of the California Civil Code which provides:
A general release does not extend to claims which the
creditor does not now or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the
debtor.
9. Soil Remediation on Pad A. Landlord shall at no cost to Tenant install or cause to be installed on Pad A a vapor extraction system ("VES") of a type and scope which substantially conforms to the VES detailed in that certain document entitled "Notice Inviting Bids for Soil Remediation Using Vapor Extraction System at Former Thrifty Oil Site in the City of Bell Gardens -- Fiscal Year 1992," prepared for Tenant by The Earth Technology Corporation and presented to Landlord in January, 1992("Notice Inviting Bids"), as such Notice Inviting Bids may be amended from time to time with the mutual consent of the Parties, which consent shall not be unreasonably withheld. Landlord shall be responsible for all costs of installation and maintenance of the VES, and shall cause the VES to be operated until such time as Landlord's environmental consultant certifies that the necessary state and federal agencies no longer require such operation in connection with remediation of Pad A. Tenant shall cooperate reasonably in allowing access to Landlord and its agents for the purpose of installing and maintaining the VES. Except as expressly provided above, Tenant acknowledges that it has accepted possession of the Leased Premises (including Pad A) in accordance with and subject to the provisions of the Ground Lease and the DDA, including without limitation Section 2.3 of the Ground Lease and Section 1.2.2 of the. DDA.
10. Rent Holiday for Pad A. No Annual Minimum Rent shall I:\DOCS\SEC\ABRAM\0580AABG.AL-G
—7-
92- 936427
05/21/92-1
Exhibit 2
114
accrue with respect to Pad A ("Pad A Rent Holiday") for the period ("Pad A Rent Holiday Period") commencing upon the date of this First Amendment and ending on the date ("Lapse Date") which is six months following the date on which installation of the VES is certified as complete by Landlord's Environmental Consultant.
Provided, however, that in the event that Tenant demonstrates, to Landlord's reasonable satisfaction, that notwithstanding the installation of the VES, Tenant remains unable to secure, because of the presence of the contaminants being remediated by the VES, the permits necessary to legally permit it to proceed with the construction of the Improvements required to be installed by Tenant on Pad A (the "Required Permits"), the Pad A Rent Holiday Period shall continue beyond the Lapse Date until the earlier of (i) the date on which Tenant secures the Required Permits, or (ii) the date which is six months following the date on which Landlord's environmental consultant certifies (the "Certification") that the soil remediation on Pad A for which the VES was installed (the "Remediation") has been completed. Landlord shall, upon Landlord's receipt of the Certification, deliver written notice (the "Completion Notice") to Tenant stating that the Remediation has been completed, together with a copy of the Certification. The Remediation shall be conclusively deemed to have been accomplished unless Tenant, in its reasonable discretion, determines that the Remediation has not been completed and delivers written notice (the "Contest Notice") to Landlord contesting the Certification within fourteen (14) calendar days following delivery of the Completion Notice. Such Contest Notice shall specify the grounds upon which Tenant objects to the Completion Notice and the Certification.
In the event Tenant delivers the Contest Notice, Landlord may elect to either (i) perform further Remediation on Pad A in which event Annual Minimum Rent for Pad A shall continue to be waived until delivery of a new Certification and Completion Notice pursuant to the procedure set forth in the preceding paragraph, or, (ii) submit the determination of whether the Remediation has been completed to a judicial reference proceeding conducted pursuant to Section 638 et. seq. of the California Code of Civil Procedure (or such successor statute or amendment thereto as may hereafter be enacted). Landlord and Tenant agree that such reference shall be maintained in Los Angeles County and that the Superior Court of the State of California for Los Angeles County shall have personal jurisdiction over it in any such action or proceeding. Such reference shall be ordered by said Court to any member of the Los Angeles County trial panel of retired judges, promptly upon commencement of such action or proceeding, by agreement of Landlord and Tenant or (failing such agreement) upon motion brought by either of the Parties. The prevailing party in any such proceeding, including appeal, shall be entitled to its reasonable legal fees and costs incurred in respect thereto. During the pendency of any judicial reference action and any appeal therefrom respecting whether the Remediation of Pad A has been completed, Tenant shall not be obligated to pay to Landlord Annual Minimum I:\DOCS\SEC\ABRAM\0580AABG.ALG
-8- 05/21/92-1
Exhibit 2
115 92- 936427
Rent for Pad A but shall instead pay into an escrow account (the "Escrow") established by Landlord with a title company or independent escrow holder selected by Landlord, all Annual Minimum Rent which would be owing Landlord with respect to Pad A if a Contest Notice had not been delivered by Tenant to Landlord. The Annual Minimum Rent held in the Escrow shall earn interest and all amounts deposited in Escrow, including interest, shall be immediately disbursed to Landlord or Tenant as determined by the reference judge following conclusion of that proceeding and any appeal therefrom.
11. Resumption of Pad A Rent Obligation. From and after the expiration of the Pad A Rent Holiday Period, Rent (including Annual Minimum Rent, Annual Percentage Rent, late charges and interest) shall accrue with respect to Pad A at the rates specified in the Ground Lease. The timing of periodic increases and adjustments in Rent for Pad A shall not be affected by the Pad A Rent Holiday Period, and shall occur at the time they would have occurred in the absence of the Pad A Rent Holiday. The Pad A Rent Holiday shall apply only to Annual Minimum Rent, and shall not apply to other sums required to be paid by Tenant as additional Rent pursuant to provisions of the Ground Lease, including without limitation the provisions of Sections 5.3, 9.1, 9.7 and 13.3 of the Ground Lease.
12. Schedule of Performance for Pad A Improvements. Tenant shall without cost to Landlord construct certain restaurant and related Improvements as described in the Ground Lease and the DDA on and around Pad A within the times specified on the Supplemental Schedule of Performance attached hereto as Exhibit "2", which Exhibit supplements the Schedule of Performance attached as Exhibit "D" to the Ground Lease. The failure to timely commence and complete these Improvements shall constitute an Event of Default under the Ground Lease and the DDA .
13. Reaffirmation of Ground Lease and DDA; Conflicting Terms.
Except to the extent such terms and provisions are modified by this First Amendment, the terms and provisions of the Ground Lease and of the DDA are hereby reaffirmed by Landlord and Tenant, including without limitation the restrictions on Tenant's right to transfer and assign its interest thereunder. The conditional approval given in paragraph 1 hereinabove to certain loans and transfers shall not constitute a waiver of any such restrictions, and shall not constitute approval of any loans or transfers other than those contemplated by the form of First Trust Deed Modification, Second Trust Deed, Third Trust Deed and related loan documentation provided by Chase and Tenant to Landlord prior to the date hereof.
In the event any term or provision hereof is inconsistent with a term or provision of the Ground Lease or of the DDA, the term or provision hereof shall govern.
14. Confirmation of Agency's Loan Outstanding. Tenant and the Agency hereby confirm that, as of the Reference Date, the total I:\DOCS\SEC\ABRAM\0580AABG.ACG
—9— 05/21/92-1
92- 936427
Exhibit 2
116
principal and accrued interest outstanding on the Agency's Loan is Nine Hundred Ninety -Three Thousand Four Hundred and Thirty -Five Dollars and Thirty -Six Cents ($993,435.36).
15. Incorporation of Exhibits. The exhibits attached to this First Amendment are hereby incorporated by reference into the body of this First Amendment as if set forth in full herein.
16. Incorporation of Defined Terms. Unless otherwise defined in this First Amendment, all defined terms herein shall have the definitions assigned to them in the Ground Lease, which definitions are hereby incorporated into this First Amendment to the extent they are not inconsistent with the terms hereof.
17. Incorporation of First Amendment into Ground Lease. The provisions hereof are hereby incorporated into the Ground Lease.
Except to the extent that such provisions of the Ground Lease are amended by this First Amendment, the terms and provisions hereof shall be subject to the notice, default, cure, remedy and .other provisions of the Ground Lease.
18. Guaranty of Lease. Concurrently with its execution of this First Amendment, and as a condition precedent to the effectiveness thereof, Tenant shall secure and deliver to Landlord an executed Consent to Amendment and Affirmation of Guaranty in the form attached hereto as Exhibit "3".
19. Recordation. Upon the execution and delivery of this First Amendment by Landlord and Tenant, Landlord shall cause this First Amendment to be recorded in the Official Records of Los Angeles County, California.
20. Counterparts. This Agreement may be executed in
counterparts, each of which shall constitute an original document, and all of which together shall constitute one and the same instrument. In the event of counterpart execution, all original signature pages may be attached to one original text for purposes of recordation.
I:\DOCS\SEC\ABRAM\0580AABG.ALG
-10- 05/21/92-1
Exhibit 2
117 92- 936427
IN WITNESS WHEREOF, the Parties have executed this First Amendment as of the date first above written.
TENANT:
BELL GARDENS ASSOCIATES,
a California general partnership
By: HOPKINS DEVELOPMENT COMPANY, L.P.,
a Delaware limited partnership
General Partner
By: STEPHEN HOPKINS DEVELOPMENT
COMPANY OF NEWPORT BEACH,
a California corporation,
General Partner
By:
By:
By:
Ste h h C. Hopkins,
Pre dent
hn D. Hopkins,
ice President
Thomas D. Lenny, an individual,
General Partner
LANDLORD:
ATTEST: BELL GARDENS REDEVELOPMENT AGENCY
By:
William Vasquez,
Agency Secretary Executive Director
APPROVED AS TO FORM:
BROWN, WINFIELD & CANZONERI, INC.
Landlord Attorney
By:
Dennis Roy, Esq.
I:\DOCS\SEC\ABRAM\0580AABG.ALG
-11- 05/21/92-1
Exhibit 2
92- 936427
118
IN WITNESS WHEREOF, the Parties have executed this First Amendment as of the date first above written.
TENANT:
BELL GARDENS ASSOCIATES,
a California general partnership
By: HOPKINS DEVELOPMENT COMPANY, L.P.,
a Delaware limited partnership
General Partner
By: STEPHEN HOPKINS DEVELOPMENT
COMPANY OF NEWPORT BEACH,
a California corporation,
General Partner
By:
Stephen C. Hopkins,
President
By:
John D. Hopkins,
Vice President
By:
Thomas D. Lenny, an individual,
General Partner
LANDLORD:
ATTEST: BELL GARDENS REDEVELOPMENT AGENCY
°A±an-("o. BY:
Agency Secretary
illiam Vasquez
Executive Direct
APPROVED AS TO FORM:
BROWN, WINFIELD & CANZONERI, INC.
Landlord Attorney
By:
Den
I:\DOCS\SEC\ABRAM\0580AABG.ALG•
-11-
05/21/92-1
Exhibit 2
119 92- 936427
I:\DOCS\SEC\ABRAM\0580AABG.ALG
STATE OF CALIFORNIA
SS.
COUNTY OF
HOPKINS DEVELOPMENT
COMPANY, L.P.
On 1;L 91i 1992, before me, ro r (a � 7i1mp�f r�Ct� a
Notary Public, personally appeared Stephen . Hopkins, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the person, or the entity on behalf of which the person acted, executed the instrument.
WITNESS my hand and official seal.
STATE OF CALIFORNIA
COUNTY OF
Notary P .I jc/
SS.
HOPKINS DEVELOPMENT
COMPANY, L.P.
On J/27*jZ , 1992, before me, 1(11/ im ►� (:rma k_- , a Notary Public, personally appeared John Hopkins, personally known to me (or proved to me on the basis o satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the person, or the entity on behalf of which the person acted, executed the instrument.
WITNESS my hand and official seal.
Notary Puzr
-12-
92- 936427
05/21/92-1
Exhibit 2
120
STATE OF CALIFORNIA ) THOMAS D. LENNY
SS.
COUNTY OF C( )
On 51'i'2 , 1992, before me, '�►rcu.( ?rI YY1G( n, a
Notary Public, personally appeared Thomas 1'YlYY11'.t�
D. Lenny, personally
known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the person, or the entity on behalf of which the person acted, executed the instrument.
WITNESS my hand and official seal.
STATE OF CALIFORNIA
COUNTY OF
SS.
BELL GARDENS
REDEVELOPMENT AGENCY
On , 1992, before me, , a
Notary Public, personally appeared William Vasquez, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the person, or the entity on behalf of which the person acted, executed the instrument.
WITNESS my hand and official seal.
I:\DOCS\SEC\ABRAM\0580AABG.ACG
Notary Public
-13- 05/21/92-1
Exhibit 2
1292- 936427
I:\DOCS\SEC\ABRAM\0580AABG.ALG
STATE OF CALIFORNIA
COUNTY OF Los Angeles
SS.
THOMAS D. LENNY
On May 21, , 1992, before me, Nancy A. Higham , a
Notary Public, personally appeared Thomas D. Lenny, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the person, or the entity on behalf of which the person acted, executed the instrument.
WITNESS my hand and official seal.
Notary Public
STATE OF CALIFORNIA
SS.
COUNTY OF Los Angeles
BELL GARDENS
REDEVELOPMENT AGENCY
On May 21, , 1992, before me, Nancy A. Higbam , a
Notary Public, personally appeared William Vasquez, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the person, or the entity on behalf of which the person acted, executed the instrument.
WITNESS my hand and official seal.
Notary Public
-13- 92- 936427
05/21/92-1
Exhibit 2
122
TABLE OF EXHIBITS
EXHIBIT "1"
EXHIBIT "2"
EXHIBIT "3"
I:\DOCS\SEC\ABRAM\0580AABG.ALG
LEGAL DESCRIPTION OF PROPERTY
SUBJECT TO GROUND LEASE
SUPPLEMENTARY SCHEDULE OF
PERFORMANCE
CONSENT TO AMENDMENT AND
AFFIRMATION OF GUARANTY
—14— 05/21/92-1
Exhibit 2
12'92- 936427
EXHIBIT "1
"
LEGAL DESCRIPTION
Real Proc•rty
That certain real property situated in the State
of California, County of Los Angeles, City of Bell Gardens, and legally described as follows:
PARCELS 1 THROUGH 15 INCLUSIVE OF PARCEL MAP NO.
20044, IN THE CITY OF BELL GARDENS, COUNTY OF LOS
ANGELES, STATE OF CALIFORNIA, AS PER PARCEL MAP
FILED IN BOOK 244, PAGES 18 THROUGH 23 INCLUSIVE
OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY
RECORDER OF LOS ANGELES COUNTY.
EXCEPT THEREFROM, ALL OIL, GASES, MINERALS AND
HYDROCARBON SUBSTANCES IN AND UNDER SAID REAL
PROPERTY AS RESERVED IN VARIOUS DEEDS OF RECORD
ONE OF THEM BEING REGISTERED ON JUNE 14, 1945, AS
DOCUMENT NO. 10090-N OF TORRENS.
92- 936427
Exhibit 2
124
EXHIBIT "2"
SCHEDULE OF PERFORMANCE
ACTION
1. Execution and Delivery of
First Amendment to Bell
Gardens Shopping Center Ground
Lease and Disposition and
Development Agreement.
2. Tenant delivers as -built plans
for all off -site improvements
previously constructed by or
on behalf of Tenant in
connection with the Shopping
Center.
3. Submission -- Construction
Drawings, Landscape and
Grading Plans. Tenant shall
prepare and submit to Landlord
construction drawings, and
landscape and grading plans
for the Pad A Improvements.
4. Approval -- Construction
Drawings, Landscape and
Grading Plans. Landlord shall
approve or disapprove the
construction drawings,
landscape and grading plans.
5. Submission -- Construction
Contract and General Contrac-
tor. Tenant shall submit a
binding Construction Contract
with a General Contractor for
construction of the Pad A
Improvements.
6. Approval -- Construction Con-
tract and General Contractor.
Landlord shall approve, or
disapprove Tenant's
Construction Contract and
General Contractor.
K:\DOCS\SEC\ROY\0580AACE.JZ/3' - 1 -
DATE
Within 30 days after
Landlord execution of
First Amendment. (Event
1)
Within 45 days after
Agency execution of the
First Amendment.
(Event 1)
Within 30 days after
receipt by Landlord.
(Event 3)
Within 30 days after
Landlord approves Final
Construction Drawings.
(Event 4)
Within 30 days of receipt
by Landlord. (Event 5)
05/21/92-3
Exhibit 2
202- 936427
ACTION
7. Commencement of Construction.
Tenant shall commence
construction of the Pad A
Improvements.
8. Completion of Construction.
Tenant shall complete
construction of the
improvements on the Leased
Premises, including Pad A.
9. Issuance -- Certificate of
Completion. Landlord shall
furnish Tenant with a Certifi-
cate of Completion in accor-
dance with the requirements of
the DDA and the Lease.
K:\DOCS\SEC\ROY\0580AACE.JZ/3
-2-
DATE
Within 30 days after
approval of Construction
Contract and General
Contractor by Agency;
provided that, in no
event shall Tenant be
required to commence
construction of the Pad A
Improvements so long as
Tenant demonstrates, to
Landlord's reasonable
satisfaction, that
notwithstanding Land-
lord's installation of
the Vapor Extraction
System ("VES") upon
Pad A, Tenant remains
unable to secure, because
of the presence of the
contaminants being
remediated by the VES,
the permits necessary to
legally permit it to
proceed with construction
of the Pad A Improve-
ments. (Event 6)
Within 6 months after
commencement of
construction. (Event 7)
Promptly after
satisfactory completion
of all construction
required to be completed
by Tenant on the Leased
Premises and upon written
request therefor by
Tenant. (Event 8)
92- 936427
05/21/92-3
Exhibit 2
126
EXHIBIT "3"
CONStNT TO AMENDMENT AND AFFIRMATION OF GUARANTY
As an inducement for the Landlord executing and
delivering the foregoing First Amendment to Bell Gardens Shopping Center Lease and Disposition and Development Agreement (the "First Amendment"), the undersigned, being the guarantor of Tenant's obligations under the Ground Lease pursuant to that certain Guaranty of Lease dated as of September 1, 1989 (the "Guaranty"), hereby consents to the First Amendment and agrees that the modifications effected by the First Amendment shall not affect or limit in any way his obligations under the Guaranty. The undersigned hereby reaffirms all of his obligations under the Guaranty.
Dated as of: March 20, 1992
Stephen C. Hopkins
I:\DOCS\SEC\ABRAM\0580AABG.ACG
—1-
05/21/92-1
Exhibit 2
127 92- 936427
i
SPOUSE'S CONSENT AND AFFIRMATION OF WAIVER
• OF COMMUNITY PROPERTY RIGHTS
I hereby acknowledge that I have read and understand the contents of that certain First Amendment to Bell Gardens Shopping Center Ground Lease and Disposition and Development Agreement (the "First Amendment") and that certain Consent to Amendment and Affirmation of Guaranty (the "Consent") dated as of March 20, 1992, given by my spouse, Stephen C. Hopkins, to the Redevelopment Agency of City of Bell Gardens ("Landlord") in connection with that certain Guaranty of Ground Lease ("Guaranty") dated as of September 1, 1989 executed by my spouse to secure that certain Ground Lease (the "Lease") dated as of September 1, 1989, between Landlord and Bell Gardens Associates, a California general partnership.
I hereby give my full, unconditional and unequivocal
consent to the First Amendment and my spouse's execution of the Consent and agree that the Spouse's Consent and Waiver of Community Property Rights with Respect to Guaranty of Lease executed by me in connection with the Guaranty is not affected or limited in any way by the First Amendment and I hereby reaffirm my spousal consent to the Guaranty and my waiver of any and all rights that I might have to object to the Landlord executing on our community property in connection with any lawsuit brought or judgment obtained by the Landlord in connection with the Guaranty.
Dated as of: March 20, 1992
Denise F. Hopkins
92- 936427
I:\DOCS\SEC\ABRAM\0580AABG.ALG
-2- 05/21/92-1
Exhibit 2
128
SHOPPING CENTER
GROUND LEASE
THE BELI. GARDENS REDEVELOPMENT AGENCY
LANDLORD
BELL GARDENS ASSOCIATES,
a California general partnership'
TENANT -
0580D050.051/003[94]
CM8 9043 1175.
. CONFTDLNTIAL
4od -
No .l;•.(v-•
W •.•...y 0.,. A's l,.l LO& --?
. 091389-14
Exhibit 2.
129
TABLE OF CONTENTS
Page
ARTICLE'1. LEASED PREMISES 1
1.1 Leased Premises 1
1.2 City 1
1.3 Default Rate 1
1.4 Encumbrance 2
1.5 Governmental Restrictions 2
1.6 Improvements 2
1.7 Losses and Liabilities 2
1.8 Person 2
1.9 Redevelopment Plan 2
1.10 Rent 2
1.11 Representatives 3
1.12 Transfer/Transferee 3
1.13 Ownership and/or Control.., 3
1.14 CC&Rs 3
1.15 Site Plan....... .. 3
1.16 Scope of Development 3
1.17 Schedule of Performance 4
1.18 Plans 4
ARTICLE 2. TERM 4
2.1 --Term 4•
2.2 Options to Extend 4
2.3 Possession; Risk of Loss; Covenant
of Quiet Enjoyment; Condition of Title 5
ARTICLE 3. RENT PAYMENTS 6
3.1 Construction Period Rent 6
3.2 Operation Period: Annual Minimum
Rent and Annual Percentage Rent 7
3.2.1 Operation Period: Annual
Minimum Rent 7
3.2.2 Operation Period: Annu.1
Percentage Rent 7
3.2.2.1 AnnualPircentage Rent 7
3.2.2.2 Gross Revenues 8
3.2.2.3 Exclusions Tram Gross
Revenues 9
3.2.2.4 Quarterly Installments of
Annual Percentage Rent 9
3.2.2.5 Annual Adjustment 9
0580D030.051/003[95] -i- 091389-15
CMB 9043 1176
CONFIDENTIAL
Exhibit 2
130
TABLE OF CONTENTS
a
3.2.2.6 Maintenance. of Books and
• Records; Inspection and
Audit 10
3.3 Late Charge; Miscellaneous .11
3.4 Negation of Partnership 11
ARTICLE 4. USES 11
4.1 Use of the Leased Premises 11
4.2 Grant Easements 12
4.3 Non -Discrimination 12
ARTICLE 5. CONSTRUCTION BY TENANT 14
5.1 Duty to Construct 14
5.2 Conditions to Construction of
Improvements 14
5-.2.1 Submission and Approval of
Plans and, Specifications
and Other Required Matters 14
5.2.2 Builder's Risk and Other Insurance 15
5.2.3 No Construction Before Notice;
= Notice of Nonresponsibility 15
5.2.4 Completion of Improvements and
Other. Work; Compliance With Law
and Quality 15
5.3 Mechanic's, Materialman's, Contractor's,
or Subcontractor's Liens 16
5.4 Alterations, Modifications or Replacements of Improvements; All Work on Written Contract; Approval of General Contractor;
Performance and Payment Bond 17
5.5 Ownership of Improvements 18
5.6 Certificate of Completion 19
5.7 Development Loan 19
5.7.1 Disbursement Procedures 19
5.7.2 Interest Rate and Payments 20
5.7.3 Definitions 20
5.7.4 Disputes Concerning Net Sale
Proceeds and Net Refinancing
Proceeds 24
0580D050.051/003[96] -ii- • 091389-15
CMS 9043 1177
CONFIDENTIAL
Exhibit2 131
TABLE- OT CONTINTs
5.7.5 Exercise of Option to Purchase- 24
5.7.6 Application of Governmental Grant • 25
5.7.7 Landlord/City's Installation of
Developer's Offsite Improvements 25
ARTICLE 6. REPAIRS AND MAINTENANCE 25
6.1 Landlord's Nonresponsibility 25
6.2 Tenant's Duty -to Maintain Premises 25
6.3 Repair; Destruction 26
ARTICLE 7. LEASEHOLD FINANCING 26
7.1 Definitions: Leasehold Mortgage; Lender 26
7.2 Conditions To Obtaining Leasehold
Mortgage 27
7.3 Lender's Rights 28
7.4 ,Obligations of Construction Lender 30
7.5 Right of the Landlord to Cure Defaults
Under' Encumbrances - 30
ARTICLE 8. ASSIGNMENT AND TRANSFER 31
8.1 -=Assignment of. Landlord's Interest
in Lease or the Leased Premises;
Recoupment Fee 3.1
8.2 Transfer of Lease:or Leased Premises by
Tenant; 'transfer of. Beneficial Interest or
Ownership of .Tenant;. Selection of
•Management Entity and Assignment of
Beneficial Interest in or Ownership of
Entity; Subleases, Licenses or. Concession
Agreements 31
8.2.1 ..Transfer of the Lease, the Leased
Premises,.. or. the Improvements to
be Constructed Thereon 31
8.2.2 Transfer of Ownership and/or
Control of Tenant; Retention
of Management Entity and
Transfer of Interest Thetain 32
8.2.3 Concessions, Licenses and Subleases • • 34
8.3 Investigation of Proposed Transferee; Costs • • 36
0580D050.051/003[97]
CM8 9043 1178
CONFIDENTIAL
-iii- 091389-15
Exhibit 2 132
TABLE OF CONTENT5
ARTICLE 9.
TAXES AND IMPOSITIONS
9.1 Tenant To Pay Impositions
9.2. Proration of Impositions
9.3 Payment Before Delinquency
9.4 Contest of Imposition
9.5 Tax Returns and Statements
9.6 Indemnification
9.7 Payment by Landlord
ARTICLE 10. UTILITY SERVICES
10.1 Tenant's Responsibility
10.2 Landlord Has No Responsibility
ARTICLE 11. INSURANCE
11.1 Fire and Extended Coverage Insurance
11.2. Cooperation in Obtaining Proceeds of
Fiie and Extended Coverage
11.3 Builder's Risk and Worker's
Compensation Insurance
11.4 „Public Liability Insurance
11.5 Policy Fors, Content and Insurer
11.6 Indemnification
ARTICLE 12. CONDEMNATION
37 38
38 38
39 39
39 40
40 40
40 40
40 40
41 41
42 43
12.1 Definitions: Award; Taking; Taking Data;
Total Taking; Substantial Taking; Partial
Taking; Notice of .Intended Taking 43
12.2. Total or Substantial Taking of
Leased Premises 44
12.3. Apportionment. and Distribution of Award
for Total Taking and Substantial Taking 44
12.4 Partial Taking; Abatement and
Restoration 44
12.5 Apportionment and Distribution of
Award For Partial Taking 45
12.6 Taking for Temporary Use 45
ARTICLE 13. DEFAULT 46
13.1 Events of Default 46
13.2 Notice of Default_; ?anant's Right to Cure 47
13.3 Landlord's Right to Curs Tenant's Default 48
13.4 Notice of Landlord's Default; Tenant Waiver 48
0580D050.051/003[98]
-iv- 091389-15
CMB 9943 1179
CONFIDENTIAL
Exhibit 2
133
TABLE OF CONTENTI
Page
13.5 Landlord's Remedies 49
13.5.1 Right to Terminate 49
13_.5.2 Right to Reenter 49
13.5.3 Right to Relet on Tenant's
Account 50
13.5.4 Effect of Reentry 51
13.6 51
13.7 No Waiver - 51
13.8 Delays in Performance 51
ARTICLE 14. EXPIRATION; TERMINATION 52
14.1' Tenant's Duty To Surrender 52
ARTICLE 15. TENANT'S REPRESENTATIONS AND WARRANTIES 53
15.1 Tenant's Representations and Warranties 53
ARTICLE 16. MISCELLANEOUS 55
16.1 Estoppel Certificate 55
16.2 Notices 56
16.3 Attorneys' Fees 56
16.4 Headings 57
16;5 Rights of Successors 57
16.6 Amendments in Writing 57
16.7 Time of Essence 57
16.8 Interpretation 57
16.9 Applicable Law; Severability 57
16.10 Exhibits - 58
16.11 Waiver of Subrogation 58
16.12 Attornment by Tenant 58
16.13 Short For of Lease 58
16.14. Landlord's Rights of Inspection S8
16.15 Nonmerger of Fee and Leasehold Estates S9
16.16 Nonliability of Landlord and
City Representatives 59
16.17 Counterparts 59
16.18 Authority S9
16.19 Option to Purchase S9
16.20 Guaranty of Tenant's Obligations 61
16.21 Gas Station Parcel Easements 61
16.22 Boy's Market Relocation 62
Remedies Cumulative
0580D050.051/003[99] •v=
• 091389.15
CMB 9043 1180
. CONFIDENTIAL
Exhibit 2
134
, Table of Exhibits
A Legal Description of Leased Premises
8 Site Plan
C Scope of Development
D Schedule of Performance
E Estoppel Certificate
F Guaranty of Tencnt's Obligations
G Grant Deed
H List of Mitigating Measures
0580DQ50.051/003•[100] • -vi- 091389-14
CMB 9043 1181
CONFIDENTIAL
Exhibit 2 135
DELL GARDENS GROUND LEASE
This Ground Lease ("Lase") is dated for identification
purposes as of the lst.day of September,
into by and between the.following. 1989, and is
THE DELL GARDENS REDEVELOPMENT ACENCTl�ctivaly, the corporate orp rate and politic. ("Landlord"); and , a public body co California general partnership ("Tenant").
GARDENS ASSOCIATES,
( Tenant ).
and the covenants consideration s agreecof the
containe
•
payments to be made hereunder
d herein and as provid-
ed to Lease ("DDA") between the Parti i"or. the th
predeces-
sors', .dated as of May
and Tedate has y 23,. 1988, Landlord hereby leases tender na t herebys from Landlord the. real Tenant and conditions. he Leased Premises" property herein -
upon the following terms
The terms and conditions. of this Lease hereby superce
and cancel the terms and conditions of that certain Croun dated as of September.l; de
Landlord and Tenant 1989. entered :into by end between
Least"),. which Prior Lea a is of no further force exequtioh of or document identification number of ('Prior
located in the the Prior Lease, hich t. The
0 O.OS1t003lower left hand corner of is
.the Prior Lease, is
ARTICLE 1. DEFINITIONS
1.1 Leased Premises.
The term "Leased Premieei"
demised and leased hereunder, together with ail buildin means the real. property
tures, improvements. and fixtures now or hereafte.r..erected on. The Leased Premises are located in the City of Bell sGard Gardens, County of � Los there-
Eahly described gia athe State
Legal Description
are more ens,
Exhibit A.l
attached hereto
1.2 C_i_1.
The tern "City" means the City of Dell Gardens, a Cali- fornia municipal corporation.
1.3 Default Rate.
est equal thetterm "Default Rate" means.an annual rate of inter - es interest charted seror ott(1) three
eime b
National Percent (ez) above the rate
said bank Trust' and. Savings Association by the Bank of Amein the event rica ceases operations;. then another establi hed and finan- cially eecure institutional lender designated by Agency) on short g
term loans to large businesses having a high credit standing 0S80D0S0.0Si/003
M8 9043 1182
. CCONFIDENTIAL
•
091389-14
Exhibit 2
136
(which rate is commonly referred to as the prime or reference rate), or (ii) the highest lawful rate.
1.4 Encumbrance.
The term "encumbrance" means and includes any mortgage, deed of trust, encumbrance, lien, security instrument or financ- ing conveyance of any kind, including a sale and lease -back.
1.3 Governmental Restrictions.
The term "Governmental Restrictions" means any and all
laws, statutes, ordinances, codes, rules, regulations, writs, in- junctions, orders, decrees,` rulings, conditions of approval, or authorizations, now in force or which may hereafter be in force, of any governmental entity, agency'or political subdivision.
1.6 Improvements.
The term "Improvements" means all grading and excava-
tion to be done on the Leased Premises by Tenint as well as all buildings,. structures', fixtures, parking, landscaping, and other work, construction, alterations and improvements of whatsoever character to be done by Tenant on, around, under or over the Leased Premises pursuant to the DDA or this Lease.
1.7 Losses and Liabilities.
TR4 term "Losses and Liabilities" means all claims,
causes of action, liabilities, loses, damages, injuries, expens- es, charges, penalties or. costs incurred by the. indemnified party with respect to counsel of its. choice (including without limita- tion reaseznable attorney!' fees and costs), ofwhatsoever charac- ter, nature and kind, whether to property or to person, and whether by direct or derivative action, knownorunknown, sus- pected or unsuspected, latent or patent, existing or contingent.
1.8 Person.
"Person" means an individual, corporation, partnership, joint venture, association, firm, joint stock company, trust. unincorporated association or other entity.
1.9 Redevelopment Plan.
The.term "Redevelopment Plan" means the "Redevelopment
Plan for the Central City Redevelopment Project Area," adopted by Ordinance No. 399 of the City Council of the City of Dell Gardens on June 11, 1979, as it may from time to time be amended.
1.10 Rent.
The term "Ren.t" means the "Construction Period Rent",
"Annual Minimum Rent" and "Annual Percentage Rent" (as defined in 0580D050..051/003
-2- 091389-14
CM8 9043 1183
.CONFIDENTIAL
Exhibit 2 137
Article 3) and all other sums .required to be paid by Tenant as additional rent pursuant to the terms of this Lease.
1.11. Representatives.
• .The term "Representatives", as used with respect to any person or.entity, means any or all of such person's or entity's respective .predecessors, successors, assigns, .agents, officials, employees; members, independent contractors, affiliates, princi- pals, officers, directors,'..attorneys, accountants, representa- tives, staff, council members, board 4members, and planning com- missioners.
1.12 Transfer/Transferee.
The term "Transfer" means any transfer, sale, assign-
ment, lease, sublease, license. franchise, concession, operating agreement, gift._hypothecation, mortgage. pledge or Encumbrance, or the like, to any person or entity ("Transferee").
1.13 Ownership and/or Control.
The term ."Ownership, and/or Control" means, without
limitation, all voting rights and beneficial' ownership with respect to all classes of stock, interests in partnerships and/or beneficial interests. under a trust. as may be applicable to the type of entity in question.
1144 CC&Rs.
The term "CC&Rs" means .that certain Declaration of
Covenants. Conditions and Restrictions dated as of September 1, 1989, .and recorded on _, , in the Office of
the Los Angeles County Recorder as Instrument No. , and such other covenants, conditions and restrictions as are recorded in connection with the development or use of the Leased Premises by Tenant.
The CC&Rs are to be recorded. following execution of
this. Lease and the recordation information. referenced above shall, promptly upon recordation of the CC&Rs, be confirmed in writing by the Parties and inserted in all execution copies of this Lease.
1.13 Site Plan.
The term "Site Plan" means the Site Plan for develop-
ment of the Leased Premises, a copy of which is attached hereto as Exhibit S, as it may be amended from time to time.
1.16 Scope of Development..
The term "Scope of Development" means the Scope of
Development attached hereto as Exhibit C, as it may be amended frog time to time.
OS80DOSO.OS1/003
CMS 9043 1184
CONFIDENTIAL
-3- 091389-14
Exhibit 2
138
1.17 Schedule of Performance.
The term "Schedule of Performance" means the Schedule
of Performance attached hereto as Exhibit D, as it may be amended from time to time.
1.18 Plans:
The term "Plans" means all preliminary and final con-
struction drawings and specifications, grading plans, landscape plans, Site development plans, plot plans, architectural render- ings and elevations, material'specifications, parking plans and all other approved plans for the Improvements to be constructed on the Leased Premises. .
ARTICLE 2. TERM
2.1 Term.
The term of this Lease.("Tern.") shall begin on the date ("Effective Date") upon which Tenant rs.ceivia..a fully executed copy of this Lease from Landlord, and shall end st midnight. on the date which is thirty-four '(34) years 'from the Effective Date-, unless the Term of this Leese ii sooner terminated *or extended as provided for herein.
When the Effective Date has been determined, such date
shall be inserted in the blink provided at the end of this sen- tence and Landlord and Tenant shall, following .such insertion, initial each copy of this Lease in the margin opposite said insertion.
Effective Date: September 1, 1989 1 . -.7„o •.
2.2 Options to Extend.
Tenant shall have the option to extend the original
term of this Lease,. subject .to all the provisions of this Lease, including, but not limited to.provisions for increases in Rent, for six (6) additional p.riods.of ten (10) -years each, each such period commencing.upon the expirition'of the.term of the immedi- staly preceding period. With resp.ct to each such extended term, Tenant may exercise its option. hereunder by giving Landlord written notice (in the manner prescribed by Section 16.2) of Tenant's irrevocable exerciss'of said option not less than six (6) months and not more than_one (1).year t,efore the end of the Term then in effect.' Failure to,ixercisa..ths:option for any such ten (10) year period shell automatically. terminate and nullify the options for all subsequent periods. After the.exercis.s of any option_ to extend,. all. references. in. this Lease to the Term _e.reof shall, be considered to Mean the.Term as extended, and all references.to the end of the Term shall be considered to mean the end of the Term as extended.
O58ODOSO.O51!OO3
-4- 091389-14
CMS 9043 1185
CONFIDENTIAL
Exhibit 2 139
Lessee's right to exercise. the option to extend for
each period is subject'to sat.isfaction.of the following ng condi- tions (i) this Lease .hall be in effect at the time
notice of exercise of an option to extend is given and on the last day of the Term.of the Lease prior. to its extension; (ii) Tenant shall not be in Default under any. provision of this Lease at the.time notice of exercise of the option is given or on the last day of the Term prior.to its extension, or at any time during the Term for a' cumulative, period .of sore than one hundred (100) days, and (iii)..the notice of exercise the.option to extend shall be delivered in strict compliance with the requirements and limitations set forth in, this Section. The option to extend the Termprovided in this Section shall immediately and automatically terminate and shall be of no further force or effect in the event that the Lease is terminated.
2..3 .Possession; Risk of Loss; Covenant of Quiet Endo? ment;*Condition of Title.
Possession of the Leased Premise; shall be delivered to Tenant on the Effective .Date and Tenant shall take possession and all risk of.loas shall pass as of that date.
Landlord covenants that, subject. to the limitations
expressly set forth herein Tenint y payment
herein, ..upon Tenant's timely
of the Rent and: performance of Tenant'i covenants and obligations under this Lease, 'may quietly have; hold', and enjoy the Leased Premises during the Term of this Lease;,without hindrance or interruption by Landlord; subject .to thi Landlord's, right to enter upoethe Leased. Premises as provided herein.
Except as expressly provided in the DDA, Landlord has
made no representations or warranties, express or implied, with respect to the Leased Premises and :Tenant shall acquire no rights, easements or licenses in or to the Leased Premises by implication or _otherwise except as expressly set forth herein.
Landlord shall_ not be responsible for any latent defect or change of condttiori in the Leased Premises and the Rent hereunder shall in no case be.withheld.or di*inished.on account of any defect in the Leased" Premises or for any change of . condition, or for any damage occurring thereto.
Tenant hereby accepts the Leased Premises in their
current condition and state, "as is" and without recourse to Landlord as to the title, nature, condition, or'usability there- of. Tenant does hereby represent and warrant to Landlord that Tenant is fully acquainted with the nature and condition, in all respect", of the Leased Preaises,.inc.ludtng,*without limitation. the title of Landlord, .the soil' and geology of the Leased Premis- es, the sidewalks and structures adjoining the same 'matters or states of fact .reflected on any tentative or final parcel or subdivision map or concerning or related.to the zoning, subdivi- sion, permitted uses on or physical condition of the Leased 0580D050.031/003
-s- 091389-14
CMS 9043 1186
CONFIDENTIAL
Exhibit 2
140
Premises, and the nature and extent of the rights of others with respect to the Leased.Premises,whether by way of easement, right of way, lease, sublease, possession, lien, encumbrance, license, reservation, condition, covenant,.. restriction or otherwise.
Tenant agrees that this Lease and its interest thereunder are subject to.(i) the CC&Rs and all other matters provided for or recorded. in. connection with the. DDA .and/or the' development of the Leased Premises by Tenant, and (ii) any and all other exceptions, .reservations, liens, encumbrances, qualifications, covenants, conditions, restrictions, easements, rights of way, or matters or states of fact related to. or concerning the Leased Premises or the''title thereto; including.., any matters or states. of fact reflected, on any tentative or'final parcel or subdivision map obtained by Tenant and any other'predevelopment or development activities of Tenant (the'items listed in (i).and (ii) above are collectively'refe'rred to as, "The Lxcept::ions"). Landlord agrees that its : fee 'interest . in the Leased Premises will not be encum- bered. by a mortgage, deed 'of truit or other like security instru- ment at the time of the conveyance of the Leased Premises to Tenant under this Lease.
ARTICLE 3. RENT PAYMENTS-
3.1 Construction Period Rent.
The term "Construction Period" means that portion of
the Term, if any, beginning on the Effective Data and ending on the .date which is twelve (12), iaonths 'from. 'the Effective Date.
The "Construction Period Rent" shall be $14,430 per month, pay- able in advance; provided, .however.. that the Construction Period Rent $hallbe.increased to $15,351 per month payable in advance in the -event that the Agency elects to -include the parcel desig- nated in the DDA as -the Thrifty Parcel'(hereinifter "Gas Station Parcel") pursuant to Section 1.2.2 of the 'DDA or in the event that the Gas. Station Parcel is.otherwise included in the Leased Premiaes"by the agreement of the Parties. The One Hundred and Fifty Thousand Dollar ($150,000) Developer's"Fee paid by Tenant to Landlord. pursuant to Section 3.1 of the DDA shall be credited against Tenant's Construction Period. Rent obligation so long as and to the extent that such Developer's Fee remains available, and, thereafter, Tenant shall pay. such Construction Period Rent out of its own funds as and when such' Construction Period Rent becomes due;. Construction Period Rent for the first month or portion thereof during the Construction Period shall be paid on the. day the Construction Period commences and the Construction Period Rent for each subsequent month or portion thereof during the Construction Period' shall- be .paid on the first day of such month.. Construction Period Rent. for sny partial month in the Construction Period shall be prorated based on a thirty (30) day month. ,
0380D050.051/003'
CMS 9043 1187
CONFIDENTIAL
-6- 091389-14
Exhibit 2
141
3.2 Operation Period: Annual Minimum Rent and Annual
Percentage Rent.
The term "O►peration.Period" means that portion of the
Term .beginning on expiration ..of the Construction Period and • continuing until. the expiration of earlier termination of this Leave. During: the. Operation Period; Tenant, ;hall ' pay to Landlord. .p (i) R., an. A.nnust. Mthirnua>., Rerit as = defined :=in:. Section ,-3:2:1 : below;;.:; an 'Annual :Percentage Relit as 'defined ` in Section `3 2. .
3.2.1. Operation Period: Annual Minimum Rent.
The Annual Minimum Rent payable for -each Lease Tear. or portion thereo:f,...durin the .0 oration Period shall be * ss The Annual Hini a Rent fo -the firs fiv follows.
r.
Op rations P rfo� 'shalr `be S692 620 psov d. Lhowo'
the: .vent that. tiffs. Agency.: elects • to include'. the Cas Station Parcel in the Leased.: .Premises pursuant:: to -Siction:.t.2.2 of .. the .:
DDA, or in the event that the Cis. .Station Parcel.. is otherwise {fop . included in the Leaaedf.Ptemises. by the agreement a t, -,--1;„;,c,-04 - .
the ' Annual Minimum Rent •shill be itiereasid to 736 830 ,A&.o.f. the fitst day- of the sixth (6eh)'''Lease..Tear :and eves, fiva..(3) -•_years. .thereetter. ( the. ustmen . i e ;
Rent then in effect shil _i increased --by atr amount --equal- toythe) cumulative total resulting, frost a four percent '
Tear.,. increase. in. .Annual Ksr►l PA �� per t.eafe
...the ..
'',"'"' ` 1"--Ad)ustment� Date (or; for the iirst-J(djustment Date since the commencement of the . ° Operation Period).
The Annual. Minimum Rent shall be..paid -in' advance'. in 12 equal monthly :instailmenti.. payable on or bsfori the first .day of •• each calendar..:month (luting the Operation Period._ Annual Minimum . Rent foi the first month Or' portion•thereof. during the Operation er. P i,od •shall be paid on. the day the Operation Period commences. • *Annul Miniinw Rent payable 'for any partial Lease Tsar or partial month during the Operation Period shall be prorated based on a 360 day"year and. thirty(30) day Month.. Each of the consecutive twelve (12) calendar:m,onth,piriods beginning' on e
the calendar month during..which the Uperstion Period commences` shall -lee. re end to as a "Leash Taar" or " ease Tears'' or fie purposes of thisLease, except that, if the term of the Operation Period commences .on a day other .than the first day of a month, the first Lease Year shall be deemed to be._the first eleven full calendar months. after the .commencement of the Operation Period, .plus any partial month between the.commencement of the Operation Period and the first full calendar month thereafter.
3.2.2. Operation Period: Annual Percentage Rant.
7.2.2..1. Annual Percentage Rent. In addi-
tion to the Annual.Hinimum Rent, Tenant shall pay to Landlord, as additional rent hereunder, and without any reduction, for Annual. • 0S80D050.05t/003
-7- 091389-14
CM8 9043 1188
CONFIDENTIAL
�a
Exhibit.2
142
BELL GARDENS MARKETPLACE
GROUND LEASE
,.TERM: September 1, 1989 - August 31, 2023
OPTIONS: Six (6) ten (10) year options with 6-12 months notice
MONTHLY MINIMUM REN
9/1/1989-8/31/1994
9/1/19941.-3/31/1995
4/1/1995-8/31/1999 '
9/1/1999-8/31/2004
9/1/2004-8/31/2009
9/1/2009-8/31/2014
9/1/2014-8/31/2019
• 9/1/2019-8/31/2023
57,718.33.
• 70,223.18
73,907.35'�
• 89,919.59
•'109;400:93
133,102.96
161,940.11
197,024.90
4% cumulative annual increase
'add I -HOP pact :}
4% cumulative annual increase
4% cumulative annual increase
4% cumulative annual increase
4% cumulative annual increase
4% cumulative annual increase
PERCENTAGE RENT: 1% of gross revenues paid quarterly. 15 days after the last day of the darter. Annual adjustment 30 days after the end of the Lease Year.
O mho.- pc
1ai5oLI.gs f rn
N.
i rt GL c_.c_ cL-c..
Oil
al rzir. + hq - l O 31 plc
X Iq me 1JJ D _ 4 n 5,cv),90
c:viles\belilgrdleaseAs
Exhibit 2
143
3.2 Operation Period: Annual Minimum Rent and Annual
percentage Rent.
The tart "Operation Period" weans that portion of the
Tern beginning on expiration. of the Construction Period and continuing until the expiration or sirlier termination of this Lease. During the Operation Period, Tenant shall pay to Landlord (i) an Anriva•1 Minimum Rant as defined .in Section 3.2.1 below, .(ii) an Annual Percentage Rent as defined'in Section 3.2.2.
3.2.1. Operation Period: Annual Minimum Rent.
The Annual Minimum Rent payable for each Lease Year. or portion thereof, during the Operation Period shall be as follows.
The Annual Mini -:n Rent for she first five (5) Laasa Tsars of t :a . operation. Perin ... shall be S692,6201 provided:, however, • that in the Avant .that the Agency elects to. include 'the Cas Station Parcel in the Leased Pramises•pursuant to Section 1.2.2 of the DDA, or in the -event that the Gas Station -Parcel is otherwise included in the Leased Premises by e th a seem.nt,of-t - " g Aga .x-ies_.- ,,•-
the Annual Minimum Rent shell ba increased to '$736,830 the. first day' of. the sixth (6th). Lease' Tear .an five (5) years thereafter (the "Adjustment "Dates"), ' the : annual Minimum Rent then in effect shall be increased by en amount equal to thi- -cm_+uTative total- ie`suIting fro* a four percent (4Z)-per-teaaic- Year --increiie in-' the Annual Minimum Rent -lance- the last Adjustment' Dante (or, for the first Adjustment Date,- since--- the commencement of the•Operation Period).
The Annual Minimum Rent shall be paid in advance in 12
equal Monthly installments payable on or before the first day of each calendar month during the Operation Period. Annual Minimum Rent for the first month or portion thereof_ -during the Operation Period Shall be paid on the day the operation Period commences.
Annual Minimum Rent payable for any partial Lease Year or partial month during the Operation Period shall be prorated based on a 360 day year and thirty (30) day month. Each of the consecutive twelve (12) calendar month periods beginning on the first day of the calendar month during which the Operation Period commences shall ba referred to as a "Lease Tear" or "Lease Years" for the purposes of this'Lease, except that, if the term of the Operation Period Commences on a day other than the first day of a month, the first Lease Tear shall be deemed to be the first eleven full calendar months' after the commencement of the Operation Period, plus any partial. month between the .commencement of the Operation Period and the first full calendar month thereafter.
- 3.2.2. Operation Period: Annual Percentage Rant.
3.2.2.1. Annual Percentage Rent. In addi-
tion to the Annual Minimum Rent, Tenant shall pay to Landlord, as additional rent hereunder, and without any reduction•for Annual 05S0D050.05 1/003 -7-
CM8 9043 1188
CONFIDENTIAL
091389-14
Exhibit 2
144
Minimum Rent paid or payable, a percentage rent ("Annual Percent- age Rent") equsl to One Percent.(1%) of the "Cross Revenues" (as hereinafter defined) for the preceding Lease Tear.
3.2.2.2. Cross Revenues. "Cross Revenues"
shall mean all gross income, rental's, revenues, payments and consideration; of whatever form or nature, whether direct or indirect, received by or paid to or for the account or benefit of Tenant or any Affiliate of Tenant or any of their agents, repre- sentatives, or employees, from any and all sources, resulting from or attributable to the ownership;. operation, leasing: and occupancy of the- Leased Premises';• determined on the basis of sourid*.cash basis accounting. 'practice' applied on a consistent basis, and shall include,. but not be limited ' to, any and all of the 'following (but'. without duplication of any item): (i) gross fixed, .minimum and guaranteed rentals paid by occupancy tenants .of the'Leased Premises under occupancy'leaies, end any similar rentals paid by -occupancy tenant* under occupancy leases; (ii) Overage, additional, participation, percentage and similar rentals paid by occupancy tenants under' occupancy leases; (iii). late charges, and interest -payable on rentals; (iv) amounts paid as a re.sult•of provisions in'occupancy leaseslper*itting the landlord thereunder to receive' or share in receipts from the subleasing of space, or assignment of such occupancy lease; (v) rents and .receipts frole..licanse, concessions, vending ma- -chines and similar. items; "(vi) other fees, charges or payments not denominated as rental but payable for'or.'in connection with the rental of 'office, retail, .storagi-, of "other space in the Leased.Presiisea; (vii)- donside-ration received in'whole or in part for the cancellation, modification, extension or renewal of an occupancy lease; and (viii) proceeds of any rental or business interruption insurance,. or any.. other revenues or proceeds of a similar nature or character to the revenues described above.
If Tenant or any other Person is occupying or using the Leased Premises or'a portion. thereof without payment of rent or at a rate less than the fair market recital for the space at issue, then the rents received by Tenant from that space shall, for purposes of determining Gross Revenues, be deemed to be an amount equal to the.. average • rint for comparable space on the Leased Premises. In the event that Landlord and Tenant are unable to agree on the fair market rental of the apace at issue, or thi average rent for.comparable space, then ,1t}e matter shall be resolved by 'an appraisal conducted in accordance with the procedure set forth in Section 16.19 of this Lease.
Any non -cash consideration received for or on account
of any of.the-foregoin1 shall, for the purposes hereof, be valued at its fair value when received and included in Cross Revenues at the time it is received. Any dispute concerning the fair market 0380D050.031/003
-8- 091389-14
CM8 9043 1189
CONFIDENTIAL
Exhibit 2
145
value of such non -cash consideration shall be resolved by an appraisal. conducted in accordance with the procedure set forth in Section 16.19 of this Lease. Any payments under or with respect to any promissory note or an assignment,tharaof (including with- out limitation -assignments for security purposes) shall b. in- cluded .in Cross. Revenues at the time received, provided that if, as'of the maturity of the notes (whether'by passage of the fixed maturity date .or by acceleration' or, otherwise) any suss shall remain owing under any such note or *alignment of note, then in 'such case the discounted value'of'such note based on the remain- ing principal balance thereof and.using a discount rata reason- ably. satisfactory. to Landlord shall be included with Cross Rave- . nues for the .Lease Year during which the maturity of the notes shall occur.. With respect to any .Lease made .between Tenant. as lessor. *.and. any Affiliate of Tenant, as lessee, if the lessee .thereunder does not itself occupy or use all such leased property but instead assigns or subleases. all or' any portion of those leased premises, then any. rental. or other consideration derived from such sublease or assignment ,in. excess• of the rental payable by such lessee to Tenant .(which shall ba allocated to such sub- • leased space, if •applicable,'on a square.footage basis) shall be included within "Gross Revenues" in addition to all rental pay- able by such lessee under its lease.
3.2.2.3. Exclusions From Cross Revenues.
Notwithstanding anything 'included in the above definition of "Cross Revenues" there shall *be excluded -from Cross Revenues:
(1) Any security or other. deposits of Ten-
ant's lessees unless and until they are actually lip -- plied to rental owed.
(2) Amounts paid by occupancy tenants pursu-
ant to escalation provisions in occupancy leases or on
account of taxes, utilities, air conditioning, heating
and other pass through.expenses for the Leased Premis-
es.
(3) Proceeds from the sale or refinancing of
the Leased Premises.
3.2.2.4. Quarterly Installments of Annual
Percentage Rent. The Annual Percentage Rent shall be payable in quarterly installments due fifteen (15) days after the last day of each quarter (i.e., three (3) month period) of each Lease Year during the,Operation Period. Each quarterly installment shall be equal to One Percent (Mai the Cross Revenues for the preceding quarter of the applicable Lease Year.
3.2.2.5. Annual Adiustaent. Within thirty
(30) days after the close of each•Laase Year during the Operation Period, Tenant shall pay to _Landlord an amount equal to the excess of the Annual Percentage Rent for the previous Lease Year 05800030.031/003
CMS 9043 1190
CONFIDENTIAL
-9-
091389-14
Exhibit 2
146
over the sum of the quarterly installments of Annual Percentage Rent, paid by Tenant for the , first three quarters of such Lease Year. At the tine of making said payment, Tenant shall submit to Landlords written statement, prepared at Tenant's expense and verified by a certified .public accountant to be true and correct, showing th. amount of Great Revenues riceived.,during such Lease Year and .ach quarter' thereof. Within thirty (30) days after each such return is tiled or required to be filed with the appro- priate governmental agency, Tenant shall provide Landlord with a true and. correct copy of its: state • and local sales and use tax returns and state and Federal income tax returns for each Lease Year during the Operation Period.
•3.2.2.6. Maintenance of Books and Records:
Inspection and Audit. Tenant. shall keep full:! .true and correct records and shall require its iubtenanta, concessionaires, and licensees to keep full, true and correct records of all Cross Revenues and other revenues. Thi racords.to be kept shall in- clude but not belimited to all .sales slip', unbilled accounting document', ledgers, cash•regist.r tapes,, bank deposit receipts, sales tax returns, sales books, • bank books,, bank statements, federal,' state and local.ta* returns, .and other records reason- ably -necessary to...verify Cross.Revonues••and other revenues re- ceived to each Lease Year (collectively, "Records")-. A11 Records shall be*.kept at. Tenant's principal•placi of business for not less -than three (3) years —after after the close of the Lease Year to which they relate; provided;:"that itch. party say at reasonable times remove any: .or all Records; or permit'or cause them to be removed for_ legai.or..accountin; purposes or for other purposes consistent with these provisions and this Lease.
Landlord shall have the right, .during..regulsr business hours and from time to time.Lft.r giving reasonable notice, to do any or all of the following:. to audit: the• Records; to cause an audit of the Records to bt made; to make abstracts from the Records; to make copies'of any or all of the Records; to examine any or all subleases, licenses, and concession agreements; and to make copies of any or all subleases, licenses, and concession agreements. Tenant shall..uke.. all Records 'specified in the notice available et.the•tine specified in the notice; if reasona- ble, end it the place where 'the Records are to be kept; in addi- tion, Landlord• may remove any or 411 Records to a place or places for the purpose.'at inspection. Tenant agrees that it will, within a reasonable .time after any requests by Landlord, furnish or cause to be furnished to; Landlord, such other information with respect to the Leased Premises as Landlord may, from time to time, reasonably request, All..inforaation•so obtained by Land- lord shall be treated as confidential except in any.litigstion or arbitration. proceedings between the..parties and in any tax pro- ceeding,- And except,, further,: that Landlord .may divulge the information to's prospective buyer or encumbrancer of the Leased Premises or of . Landlord's interest in the Lease or to a govern- mental landlord or employee properly demanding the information. 05800030.051/003
-10- 091389-14
CMS 9043 1191
CONFIDENTIAL
Exhibit 2
147
If an audit discloses that the Cross Revenues were
understated by more than three percent (yZ) of their actual amount, Tenant shall pay the cost of that audit and investi- gation; otherwise, Landlord shall bear the cost of such audit and investigation... If an audit.. or 'investigation reveals that the Cress Revenuer have been.misstated for any reason, the amount due Shall be adjusted as•appropriate, and the Party, indebted, if any, shall, promptly after the correction, pay any difference for the period affected by said adjustment.
3.3 Late Charge; Miscellaneous.
If Tenant fails to make any Rent payment within five
.(S.) days after the same is due, then. Tenant shall pay to Landlord an additional five percents(5i) of the amount of such,Rent due as liquidated damages, it being agreed that aueh amount represents a reasonable estimate.of the losses, costa and expenses (other than Landlord's foregone interest on the Rent due' *which shall accrue at the'Default rate from "the,.data such payment is due until the date of payment) that Landlord will suffer in such circumstances.
Acceptance of the Rent without the late charge will not con•
stitute ,a waiver of Tenant'.s default. -with respect to such nonpayment of the late charge by• Tenant, nor prevent Landlord from exercising all other rights and resiediesfavailable under the Lease. Landlord's failure to require'or.collect thi late charge in any one or more instances shall not constitute a.waiver of the right to coilect subsequent late charges. The .Rent shall be paid without deduction, abatement, offset, prior notice or demand.
A11 payments of Rent shall be 'made t..o Landlord as they become due..in lawful.money of the United States of America at such place as is deiignated'herein.by'Lindlord for the receipt of notices or Such 'other place as shall be designated to Tenant by Landlord in writing from time to time.
3.4 Negation of Partnership.
Nothing in
Landlord, a partner,
tionship or for any
landlord and Tenant,
ize either to act as
ARTICLE 4. USES
this Lease shall be construed to render
joint venturer, or associate in any rela-
purpose with Tenant, other than that of
nor shall this tease be construed to author -
agent for the other.
4.1 Use of the Leased Premises.
Tenant covenants and agrees for itself, its successors
and assigns, which covenants shall run with the land and bind every successor or assign in interest, of Tenant, that during development .and use of the Leased Premises pursuant to this Lease, neither the Leased Premises nor any portion thereof shall 05800050.051/003
-11- 091389-14
CMS 9043 1192
CONFIDENTIAL
Exhibit 2
148
be improved, used or occupied. in substantial violation of any . Governmental Restrictions, the CCiRs,, the Scope.of Development, the Sits P.lan.; or any final, duly 'approvid. and effective Plan . applicable to .the Lased : Premises, or -any portion, thereof•. In thi'event.that the above documents iapost.irreconcilable require- ments on. the Tenant with respect, to the'Leasid Premises, Landlord and Tenant agree t'o.•work together.to reconcile any such conflict; provided,. however, that nothing' in this sentence shall be con- strued or understood to excuse Developer's compliance with any applicable Governmental Restrictions or the other documents described above. Furthermore., Tenant shill not.maintain, commit, or permit the maintenance or commission on is Leased Premises, or any portion thereof, ofany*nuisance, public or private, as, now or hereafter defined by- any statutory or decisional law applicable to -the Leased 'Premises, or any. portion thereof.
Notwithstanding anything that is or appears to be to
the contrary in.the general".provisions of: Sections 4.1 through
4.3 hereof, Tonant'agre.es for itself; itt successors and assigns, which covenants. shall run with the land and bind every successor and assign in interest of Tenant.; that:Tenant'and such successors and:. such . assigns shall vie the Leased Premises. solely for the purpose of constructing:, operating, -owning, using and maintaining a shopping center andassociated'iaprovements ("Shopping Center" thereon,. in accordance with. and .oi the quality prescribed by the DDA, this Lease, and the Scope of.Development.
4.2 Grant Easements.
•
'tenant may enter into agreements granting easements
over the Leased Premises, provided. they are limited .to the expi- ration or sooner .termir4ation. of this Lease,. tr. subordinate to Landlord's. fee interest, and will not interferi-with any rights and .remedies of Landlord hereunder: Tenant must obtain Land- lord's prior'written consent to any agreement that would grant an eisement extending.beyond. the Teri hereof, or that would inter- fere with any .of Landlo.rd's sights and remedies hereunder.
Landlord agrees that it will not unreasonably withhold its con- sent to and will join.in the execution of such easements over the Leased Premises as may be necessary to provide utilities to the Leased Premises; provided, .that Landlord shall not be obligated to incur any cost or expense in connection with such an easement and Tenant shall indemnify, defend and hold Landlord. City and their Representatives harmless from any Losses and Liabilities in connection with the creation or use of such easements.
4.3 Non -Discrimination.
Tenant, for itself, its successors and assigns and all
Persons claiming under. or through it,.covenants that there shall be :no. diserjmination against or segregation. of any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin or ancestry, in the leasing, 0380D030.031/003
CM8 9043 1193
CONFIDENTIAL
-12- 091389-14
Exhibit 2
149
subleasing, transferring, use, occupancy, tenure or enjoyment of the Leased Premises, .nor .shall Tenant or any person claiming under or through it. establish or permit any practice or prac- tices of discrimination or segregation with reference to the selection, location, number, use o'r 'occupancy of tenants, licensees, employees or vendee' in the Leased Premises or the improvements thereon. The foregoing covenants shall run with the land.
Tenant, for itself,. its .successors and assigns and all persons claiming under or through it,.covenants that there shall be no. discrimination against or. segregation of any person or group.of-persons on account of race,:color,.creed, religion, sex, marital status, national origin or ancestry in the construction of.any improvements on the Site.
The Tenant shall refrain from restricting the rental or lease of the Leased.Premises on the basis. of. ride, color, creed, religion, sex, marital status, ancestry or.national origin of any person. All such leases, deeds.or contracts which Tenant pro- poses, to. enter into with respect to the. less., subbase, trans- fer, occupancy... tenure or enjoyment:of ,any ,land in the Leased Premises shall contain .or -ba .subject to substantially the following nondiscrimination or;nonsegregation claOses which shall be binding on all contracting parties or transferees:-- (a). In deeds: "The grantee herein covenants by
and for himself or herself, his or her. heirs, executors, adminiatritors and assigns, 'and all perions claiming under or .through them, that them shall 'be no discrimination against or segregation_of any person or group of persons on account of race, color.' creed; religion, sex, marital sta- .tus, national origin.:or ancestry in the sale, lease, sub- lease-.. transfer, use, occupancy,• tenure or. enjoyment of the premises herein conveyed, nor shall the grantee himself or herself, or my person claiming under or.through him.or her, establish or permit any such practice or practices of dis- crimination or segregation.with reference to the selection, location,, number,_ use•or occupancy: of- tenants, lessees, subtenants, sublessees or vendees in the premises herein conveyed. The foregoing covenants shall run with the land;" (b) In leases: "The tenant herein covenants by
and for himself or herself,, his or her .he;.rs, executors, administrators and assigns, and all persons claiming under or through him or: her; and. this lease is made and accepted upon and subject to the following conditions:
'That there shall be. no discrimination against or
segregation .of any person'or group of persons on account of race. color, creed, religion, sex. marital status, national origin. or ancestry, in the leasing. subleasing. transfer- ring, use, occupancy. tenure or' enjoyment of the premises 05800050.051/003
-13- 091389-14
CMB 9043 1194
CONFIDENTIAL
Exhibit 2
150
herein leased, nor shall the tenant himself or herself, or any person. claiming under or through him or her, establish or permit any .such practice ..or practices of discrimination or segregation with reference to the 'selection,•locatson, huiaber,• use or occupancy of tenants, lessees, subtenants, sublessees or vendees in the premises.harein leased;'".and • (c). In contracts: "Thera shall be no dis-
crimination against'or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, 'national origin or.incestry in the sale, lease,.sublsase, transfer, use, occupant!, tenure or enjoy- ment of the premises, nor shall any party to this contract, or any' person. claiming, under or through him or her, estab- lish or permit any.such practice or practices of discrimina- tion .or segregation with reference 'to the selection, loca- tion, number, use or .occupancy.of tenants, lessees, sub- tenants, sublessees or vendees of the land."
ARTICLE 5. CONSTRUCTION BY TENANT
5.1 Duty to Construct.
Following the Effective. Date of this Lase, Tenant
shall construct upon the Leased. Premises those Improvements required to be constructed on, above, under and around the Leased Premises by the DDA, this Lease and the .Scope of Development.
The Improvements shall be constructed and completed within the time period --sat • forth in. the Schedule . of • Performsnce, and in accordance with the terms and provisions of the DDA, this Lease, all applicable. Governmental *Restrictions, the 'CC&Rs, the Site Plan, the Scrape 'of Development, and all- final Plans for the Leased Premises which are duly approved by Landlord and City.
Said Improvements are generally' depicted on the Site Plan at- tached hereto as Exhibit D.
5.2 Conditions to Construction of Improvements.
Before Tenant begins construction of the Improvements
on the Leased Premises, and before eny building materials are delivered to the Leased Premises by Tenant or under Tenant's authority, and as a condition to Tenant's right to proceed with the construction of those Improvements,. Tenant shall have com- plied with all of the conditions sat forth in thi4 Section 5.2.
5.2.1. Submission and Approval of Plans. Specifica-
tions and Other Required Matters.
By the deadlines set forth in the Schedule of Perfor-
mance, Tenant shall have submitted to. City., and Landlord and obtained their approval of all submissions specified in the DDA and the Schedule of Performance, including all Plans for the Improvements to be constructed on the Leased Premises.
0580D050.051/003
-14- 091389-14 .
CMS 9043 1195
CONFIDENTIAL
Exhibit2 151
Any changes in such Plans or other submissions request- ed by Tenant crust be acceptable to and approved by City and Land- lord,. .in their sole discretion, as required under the DDA.
Landlord and City, as appropriate, shall approve or disapprove any proposed. -changes to ' the•Flans. and any other' submissions by Tenant within thirty (30) days of their submission.
In the event of any disapproval, Landlord or City shall inform Tenant in writing of the reasons for disapproval and•the required changes to.the Plans or other submissions and such Plans or other submissions shall- be revised in accordance with the procedures and by the times required in Article 4 of the DDA.
5.2.2. Builder's Risk and Other Insurance.
Prior to the Effective Date of this Lease, Tenant shall have obtained (and delivered insurance. certificates therefor to Landlord) for all insurance required under Article 11 of this Lease, including the "builder's. risk" and worker's compensation insurance .prescribed by Sections •11.3' and 11:6 of this Lease in connection with any work on the Leased Premises.
5.2.3. No Construction Before Notices Notice of
Nonresponsibilit,.
Tenant shall have provided Landlord.with written notice of the intended coinmencement-of construction'of any improvements or delivery.of building materiala.to the Leased Premises at least ten (10) .days prior to .the. earliir,. of Commencement, of construc- tion underthi Lease of those improvements or commencement of the delivery of those building materials .to the Leased Premises.
Landlord shall,_ at any and all times during the Term of this Lease, have the right to post and.miintain on the Leased Premises and . to.. record' as, required: by .law any notice or notices of nonresponsibility provided for by the' mechanics', -lien laws of the State of California. The work for which .said ten (10) days written notice is required shall include, in addition to actual construction work, any site preparation work, installation of utilities, street construction or improvement, or any grading or filling of the. Leased Premises.
5.2.4. Completion of Improvements and Other Work:
Compliance With Law And.Quality.
Tenant represents and warrants that the Improvements on the .Leased Premises',' and all other construction thereon, when .undertaken, while in progress and, as completed (i) will comply with all Governmental Ristrictions, including; without limits- tion, all laws and ordinances necessary to permit the lease and development' of the Leased Premises pursuant to this Lease, (ii) will be entirely on the•Leased Premises and will not en- croach. upon the land of others Or any easement or right-of-way, (iii) will be consistent with all enforceable building
0580D050.051/003 .-15- 091389-14
CMB 9043 1196
CONFIDENTIAL
Exhibit 2
152
restriction laws, whenever established, and will not violate any applicable use, easement,. license, covenant, condition or re- striction, and (iv) will .comply in. all respects with the final Plans approved.for the Improvaments or such other work. All work performed on the Leased Premises pursuant- to this Lease, or authorize& by this Lease, shall be done. in a good workmanlike manner.and only with materialI of good.quality. The -Improvements snd_ other construction work —Undertaken on the Leased Premises shall be completed promptly and without delay. Tenant specifi- 'cally agrees that, prior to commencement of construction it will impose or take all stepsr required by Landlord to assure the timely implementation; at Tenant's sole expense, of all of the mitigating measures (the "Mitigating. Measures") set forth as Exhibit H attached hereto. Tenant further agrees to take all of the steps required by -Landlord to insure that the Mitigating Measures will continue to be followed and implemented throughout the Term.
5.3 Mechanic's. Materialman's. Contractor's. or Sub-
contractor's Liens.
Subject to Tenant's right to contest as hereinafter
provided, at all times during the Term of this Lease. Tenant shall keep the "Leased Premises, including .all buildings and improvements now or hereafter located on the Leased ?remises, free and clear of all liens and claims of liens for labor, ser- vices, materials, supplies, equipment .or other like matters performed on or furnished to the Leased Premises'. Tenant shall (i) promptly pay and discharge. o'r cause the -Leased Premises to be released, from, any such lien or claim of lien, ° or, if Tenant decides to contest said lien,(ii)"furnish Landlord such bond as may be required by law to free the Leased Premises from the affect of such a lien and to secure Landlord against payment of such lien.
Should Tenant fail to pay and discharge, or cause the
Leased Premises to be relsaaed.from any such lien or claim of lien or to provide a 'bond as permitted hereunder within fifteen (15) days after suchlien or claim of limn irises, Landlord may pay, adjust, compro.ise'and discharge any such lien or claim of lien on such terms' and in such manner as Landlord may deem appro- priate. In such event, Tenant shall, on or before the first day of the next calendar month following any such payment by Land- lord, reimburse Landlord for the.full.amount so paid by Landlord, includint any actual attorneys' fees or other costs expended by Landlord, together with'interett thereon at the,Default Rate from the date of payment by Landlord to the .date of Tenant's reia- burseaant of Landlord, and:such.amount shell constitute addition al rent and become' a part of Tenant's obligation to pay Rent hereunder.
On completion of any work of improvement during the
Tern, Tenant shall file or cause to be filed a notice of 0580O050.051/003
-16- 091389-14
CM8 9043 1197
CONFIDENTIAL
Exhibit 2
153
r
Completion. Tenant' hereby appoints.Landlord as Tenant's attor- ney -in -fact to file the notice of.compl.tion on Tenant's failure to do so, upon ten (10) day*.no.tic. fro■ Landlord, after the work of improvement has been substantially completed; provided, that Landlord shall not be obligated:t.o file such a notice of comple- tion and the failure of.Landlord to file. that notice shall not excuse the failure of Tenant to discharge its obligation to file said notice of completion.
3.4 Alterations. Modifications or Replacements of
Improvements; A11 Work .on Written Contract;_ Ap-
proval of General Contractor; Performance and
Payment Bond.
Following completion of all Improvements on the Leased
Premises pursuant to the DDA;.this_.Lessa,;all Plans, the Scope of Development and the SchedUlil of .Performance,_ Tenant shall not cause or permit.any .demolition, removal, alteration, modifica- tion, replacement or addition 1(co/lictively, "Change") to. the Improveme.nts.on the Leased Premisesduring the.Term unless Tenant secures the prior.written approval Of Landlord to such Change, and the Landlord's written approval ".of, all plans and specifica- tions therefor, which approval ihall'not be unreasonably with-, 'held. It shall'not be unreasonable for Landlord'to Withhold its approval if the proposed Chang' will, -ih Landlo_rd's opinion, (i) result in a reduction in the Rent received by_Landlord from the Leased .Premises, or (ii):_ resultin, s reduction in the value of the. Leased Premises. or the .Landlord's. interest therein, or _result in.s.reduction of the revenues derived by the Land lord and thh City from the Leased "resiis's, -or (iv) involve a change in the use of'the.Leased Premises. Any such approved Change shall'be commencedand completed in accordance with all of the requirements imposed in connection with construction of the initial Improvements in Sections 5.2 and 5.3 of this Lease, and any such Change shall be coimienced and completed in accordance with the plins and specifications approved therefor.
A11 work required in connection with any Changes to any Improvements, including. 'any. site preparation, landscaping or utility installation, aa.well;as actual construction work on said Improvements, or any other construction Work performed at any time on the Leased Premises, shall be performed only by competent and financially responsible contractors,' duly. licensed as such under the laws of the State of California, and shall be performed pursuant to written contracts with such contractors.
For all Changes to be performed on the Leased Premises, Tenant .shall furnish Landlord with. a true copy of Tenant's con- tract with the general contractor. performing such Changes and obtain Landlord's approval og. that contpactor and the contract.
Said'' construction contract shall be a maximum cost contract obligating the contractor thereunder. to complete the described changes for a'specified price; subject to reasonable adjustment 03800050.031/003
-17- 091389-14
CMS 9043 1198
CONFIDENTIAL
Exhibit 2
154
for certain customary exceptions such es change orders or other .like tatters.. The construction contract shall further obligate a reputable and financially' responsible contractor, who is fully bonded and licensed in California, and. who has experience in ..completing the type of improvements contemplated.by the Changes, to comMence and complete the Changes. Said contract shall give Landlord the right but not the obligation: to assume Tenant's obligations and righti under that contract if Tenant should default;. provided. that such right to, assuhe that•.contract shall .be subject to the right, if any,:of a "Lender" under a "Leasehold Mortgage" (as those terms are defined in Section 7.1) financing the construction of such:improvements to in assignment of said contract. Prior to the commencement of.any changes to bi per- formed on the Leased Premises, Tenant shall furnish Landlord with .a true copy of and obtain Landlord's approval of Tenant's Lease- hold Mortgage, financing. the.construction' of .such Changes, which shall cosaply with Section. 7.2, and which *shill. be in an amount not less than (i) the amount.of the contract with the general contractor performing such Changes, plus (ii) an amount equal to all consultant and loan fees, "points,." commissions, charges, furnishings, .fixtures, taxis,' interest, start-up and other costs and expanses of developing and completing such Changes, less (iii) the amount of Developer's" equity'contribution to the cost of constructing such Changes.
In connection with any Changes, and before construction thereof commences,,. Tenant shall .furnish ' Landlord with a perfor- mance bond in an mount not less. than'orts hundred percent (100%) of the anticipated costa of, such 'construction work on the Leased Premises,, and' a payment bond..guaranteeing , the completion of the improvements free from liens of miterialmen, contractors, subcon- tractors, mechanics, laborers, and other similar liens. Said bonds shall be bonds of ' a 'responsible surety company, licensed to do business in California with a financial. strength and credit rating reasonably acceptable to Landlord, and shall remain in effect until the entire cost of the work has been paid in full and the new improvements have been insured as'provided in this Lease. Any such bonds shall be in a form reasonably'satisfactory to Landlord.
5.5 Ownership Of Improvements.
Any and. all Improvements erected on the Leased Premises as permitted by this Lease, as well as any and all alterations or additions thereto or any'other improvements or fixtures on the Leased Premises shall bs owned by Tenant until the expiration or sooner, termination of this.Lease; provided, Tenant shall not waste.or destroy any_. of. the above improvements or Change any ihprovem_ents on the Leased Premises', except. as permitted by this Lease. Upon the expiration or sooner termination of this Lease, all Improvements described above°and all alterations, additions or. improvements thereto (except furniture and trade fixtures) that are made to or placed on the Leased Premises by Tenant or 05800050.051/003
CMS 9043 1199
CONFIDENTIAL
-18- 091389-14
Exhibit 2
155
any other person shall be considered part of the real property of the Leased Premises and shall regain on the Leased Premises and become the property of Landlord; . Lkcept as otherwise expressly provided in this Leas*, said..inprovements shill become Landlord's property fres .and clear'of any and a11'rights to possession and all claims to or against them. by Tenant or any third person or entity, and Tenant shall 'in'demnify, defend and hold Landlord, City and their.Representatives 'harmless against all Losses and Liabilities arising from such claims.
5.6 Certificate of Completion.
Promptly after completion by Tenant of all the Improve- ments to be constructed on the teased Premises pursuant to the DDA and this Lease, Landlord shall furnish Tenant with a Certi- ficate of Completion for the Leased Premises in accordance with. the terms andprovisions of the DDA.
5.7 Development Loan
In order to induce. Tenant and the developer under the
DDA.("Developer.") to develop .the miss and quality,of the Shopping Center desired by: Landlord,_.Landlord agrees to lend Tenant and Developer sn amount (the "Agency's'Losn ) equal to —the excess of Nine Hundred Thousand Dollars.($900,000) over the sum of (i) the ".Govarnmentsl Grant" described in. Section 3.7.6 below and (ii) the "Agency/City Offsite Expenditures" described in 5.7.7 below, on the following terms and conditions:
5.7.1. Disbursement Procedures.
The Agency's Loan,shall be disbursed at the time of and applied.toward the last direct,. out•of-pocket hard construction costa incurred by Tenant.. with.resPect to the Improvements upon the Leased Premises: The' Agency.'s Loan shall:_be disbursed in accordance with" the disbursement procedures for -the construction 'loan ("Construction Loan") described in Section 4.4.1 of the DDA, as the construction costs to which,she-Agency's Loan is applica- ble araoincurred'; provided that such. disbursements procedures are determined adequate by Landlord and its" lssal. counsel, in their reasonable discretion. It thoiie- disbursement procedures are considered by Landlord and its legal counsel to provide adequate protection for the interests of Landlord, or if Developer or Tenant funds the construction. of the Improvements upon the Leased Premises solely with an equity contribution in the manner provid- ed for in Section 4.4.1 of.ths DDA, .then the Agency's Loan shall be - disbursed .in accordance with reasonable --and customary procedures employed by 'established .institutional lenders in connection with construction loans. made by such lenders. 0380D050.05t/003
-19- 091389-14
CMB 9043 1200
CONFIDENTIAL
Exhibit 2
156
5.7.2. Interest Rate and Payments.
Agency's Loan (including any partial disbursement
thereof) shall bear interest from the date of disbursement until the date of repayment at the rate'of six percent (61) per annum, compounded annually.: Until the entire outstanding balance of the Agency's •Loan,. including all accrued -Interest t. �rfi eon, t 'twpzid in full, the Developer,' Tenant, and their respective successors and assigns, shall be jointly and severally responsible for payment to the Agency, within ten (10) days after occurrence of an event'giving rise to the'"Nat Sale Proceeds".or "Net Refinanc- ing Proceeds" (as defined below), of an amount equal to fifteen percent (151) of such "Net Sale Proceeds" or "Net Refinancing Proceeds," as applicable.
5.7.3. Definitions.
As used in this Section 5.7, the following terns shall
have the meanings set forth below:
_(a) Net.. Sale Proceeds. The terse "Net Sale Pro-
ceeds" shall mean: (1).the "CroisProctids" received from any' voluntary or involuntary: safe,'': trantli r•, assignment, sublease., license,.. concession,. conveyance:. or other disposi- tion. of the: Leased Premises or=•any part thereof or any direct :or indirect beneficial 'intsrest therein, including, Without. limi'tation,.. any conveyance as. a result of or in lieu :; Of _condemnation,' any Transfer 14 Tenant, of all or any por- tion of its . rights under or interest in. this Lease, the • Leased -Premises or the..Tmpiovesunts thereon, any,?rsnsfer of the -Ownership grid/or Control :of Tenant, * and any foreclosure of Tenant's. interest in the' Leastid ud . Premises,. whether by icialprocess, exefcisa of power of ss1e; Or any"assigsr- ment or trans fear .^in lieu of .toric-iosure-dr other proceeding •in the nature - t.hereo " jbut-excluding.. standard subleases -or ground leases Which ate feat -:-occupancy purposes only, and the granting.of a .security interest in..connection with the creation of the' Construction Lean Or. Permanent Loan
permitted by: this Lsa nd _ t 8VA) (the above Matters are hereinafter collectively referred' to as a "Sale of the Leased Prenisia") or 'iron, the recovery .of any damages or other coa<pensation'froa any third party for or on account of any of the following with respect to the Leased Premises or any of the Improvements: any loos, damage or injury to the Leased Premises or the Improvements; any fails re of title or other defect or impairment of title; any loss of or
restriction on use,. ope,rstion or' occupancy; and any
diminution in 'value;` including:without. limitation with respect to any of. the foregoing, recoveries under any
property ..damage. insurancs� policies. (excluding rental or business interruption insurance),. under 'any judgments or awards made by any court, arbitrator or other .authority, and under any indemnities'or other suns paid under any leases or • 0580D030•.051/003
-20- 0913$9-14
CMS 9043 1201
CONFIDENTIAL
Exhibit 2 157
.other agreements relating to the Leased Premises (such events are .hereinafter collectively referred to as a
"Lacovery"); (2)'reduced by the sus of the "Approved
Deductions" (as.hsrsinafter defined) related to the Leased Premises or.tha applicably portion thereof plus Ito "Closing Costs" (as hereinafter defined).- Notwithstanding anything above which is or appears to be to the contrary, "Net Salt Proceeds" can'never be less than zero. A "Sal* of the
Leased also be deemed to have occurred upon
any transfer which we* motivated by. 'the .purpose of, which has' the effect of. or which is intended to avoid the
payments contemplated by this Section 5.7.
(b) Gross Proceeds. The term "Gross Proceeds"
shall mean.: In the event of.a Sale of the Lased Premises, the gross proceeds of whatever. fore or" nature (including without .liaitatien cash. the outstanding balance of any financing then encumbering .the liaised. ?remises which will remain as a lien on 'the Leased Premises .following such Sale, land the fair market value ofd not c*sh _.conitsleration I received -in .lieu of cash including the ppresent value of aany, promissory note received ai, part" of_the 'proceeds of such sale) payable directly. or. indirectly,to.or for the benefit or account. of. Tenant or Developer, or • aniy Affiliate of Tenant or Developer. 'or of any -.constituent' partners of Tenant or Developer_.. and including with iespect'to a condem- nation or taking in eminent domain o.f. any part. of the Leased Premises or.any :interest therein.; or a conveyance in lieu thereof,' the ..entire condemnation award :or compensation payable 'in connection ,witlt...such. taking or conveyance (in- . c1uding without limitation , any mounts attributable to the .value -of any unexpired leaf which' are. otherwise payable to an Affiliate of :Tenant or.Deveioper or for any constituent partner of .Tenant or" Developer); or: (2). in the event of a Recovery, the trees- proceeds. of whatever- form or nature received by Tenant or Developer or an Affiliate of Tenant or Developer,, or the agents or amp/oyees of Tsnint or Developer or of an Affiliateof Tenant or Developer, from such Recov- ery. If it is necesssry.to determine the fair market value of any non -cash Consideration in. conniction•with a Sale of the Leased Iv:miss:it and if Landlord and Tenant are unable to agree upon the•fsir market value of such non -cash consid- eration within. ten (10) days. following the date of such Sale. then the fair Market value of suchnon-cash considera- tion shall be determined.by an independent certified public accountant acceptable to.both parties, and either party may petition. the Superior Court of Los Angeles County to appoint such an accountant. The fees of"such.'accountant shall be shared equally by Landlord and Tenant.
(c) Approved Deductions. .The term "Approved
Deductions" shall mean:: (1) In.the event of a Sale of the Leased Premises,, the sum of the outstanding principal
0580D050.051/003
CMB 9043 1202
CONFIDENTIAL
-21- 091389-14
Exhibit 2 158
balance of any then existing financing secured by the Leased Premises whether or not assumed or•aaid off; and (2) in the event of I Recovery, the 'reasonable documented out-of-pocket costs incurred in thi repairing,. restoring or replacing of the damage to or destruction of the Leased Premises or of remedying such other loss, damage or injury to the extent such costs are actually incurred, excluding any "Ineligible Deductions"'(as hereinafter defined) with respect thereto.
In the event of a Sale of the Leased Premises involving less than all of the Leased. Premises ..or Tenant's interest therein, or less than all 'of -Tenant's Ownership and/or Control, the Approved Deductions shall be reduced propor- tionally.to the percentage of the portion of the Leased Premises or the :interest' in the Leased' Premises or the Tenant which is the subject of the Sale,. which amount shall be .dete.rained and allocated on a fair and equitable basis by Landlord and Tenant in accordance with.*the intent of the Parties sit forth above, or upon their failure to agree upon such' allocation within ten (10) days after any Sale of the Leased Premises' requiring . that .allocation, by judicial reference .in..accordance with Section 638 et seq. of the California Code of Civil Procedure.
(d)' Closing Costs. "Closing Costs" shall mean:
(1) In the case of a Sale of the Leased
Premises,. reasonable. documented out-bf-pocket broker- age commissions payable to a .third -party which is not -en Affiliate of Tenant or a constituent partner of
,Tenant al a result of the Sale, provided that such
commissions shall not in any event exceed four percent
(4T) of the sales price,. costs of title insurance
premiums, documentary stamp taxes, escrow fees and
recording charges, reasonable attorneys' fees and
costs, and other customary, reasonable and documented
costs, in each case actually paid or payable by Tenant
in connection with the Sale of the Leased Premises, but excluding any foreign, U.S., state or local income
taxes, franchise taxes or other taxes based on income;
or
(2) in the event of a Recovery, all
reasonable, documented out-of-pocket costs incurred by
Tenant in obtaining such Recovery,_ including without
limitation court costs and reasonable Lttbrneys' fees
and costs.
(e) Ineligible Deductions. As used herein, the
term "Ineligible Deductions" shall mean: With respect to costs incurred for repair, restoration or replacement fol- lowing any damage, destruction or loss, the sum of (i) the amounts, if any, reimbursed by any lessee of the Leased 0S80D050.051/003
-22- 091389-14
CMS 9043 1203
CONFIDENTIAL
Exhibit 2
159
Premises or any other Person (excluding any sums included as the gross proceeds of such, Recovery), plus (ii) the portion of such costs, if any, which are paid or payable to or for the account or benefit of any Affiliate of Tenant or Devel- oper or of any.constituent.partner of Tenant or Developer and which are in excess of the. costs which would be reason- ably payable for the same or .equivalent work, materials or services in an arms' length transactions between unrelated parties in the aret.
(f) Determination of Fair Market Value. At any
time when it shall be necessary to..determine the fair market value of the Leased Premises under.this Section, Tenant and Landlord may by written ageement.determine the fair market value, provided that_if Tenant.and Landlord. are unwilling or .unabli to make such a determination within thirty (30) days after .Landlord receives notice' of .the' occurrence of any event requiring the determination of fair market value, the Landlord' and Tenant shall Submit 'such dispute to arbitra- tion, which arbitration shal/ be performed 'by appraisers in accordance with the procedures hereinafter described in Section 16.19. .
(g) Landlord Not Responsible. If, at any time it
.is .calculated, the.Net Sa/es.Ptoceeds shall. be a negative amount, Landlord shall in no wey be, liable. for Such amount and there shall be no deduction. from or offset against Rent or any subsequentl,Lcalculated Net Sale Proceeds.
(h) Refinancintt Net Refinancing .Proceeds. The
term "Refinancing"_shall. mean and.* "Refinancing" shall be deemed to have'occuried upon the creation of a -loan secured in whole or in part_ by an Encumbrance on this Lease on the Leased Premises, or any -interest therein. The term "Net Refinancing Proceeds shall mean Ai) the gross _principal &mount of any disbursed loans) which is. secured in whole or in part by. the .Leased- Premises aa of the data such Net Refinancing. Proceeds are being';.meesured; (ii) reduced by the sum o.f (A) the amount of .the outstanding .. principal •balance of any Leasehold Mortgaga.repaid at the time of and from the proceeds of the Refinanci-i vine rise tQ measurement of Net Refinancing Proceeds, to the extent the Leasehold Mort- gage is. actually repaid, and (B) the actual, reasonable and documented out-of-pocket expenses of 'such Refinancing, including loan fees or points, escrow fees, title policy expenies, legal fees,, survey fees, recording fees, or other usuel.and reasonable expenses of any such. Refinancing. No deduction ' shall be allowed for paysent to any Affiliate of Tenant or Developer in connection with such Refinancing to the -extent such .payments are in excess of the reasonable amount that. would be paid for the sails or. equivalent servic- es in an'arms' length transaction between unrelated parties. 0580D050.051/003
-23- 091389-14
CMS 9043 1204
CONFIDENTIAL
Exhibit 2 160
5.7.4. Disputes Concernint Ne Sa es Proceeds and
Net Refinancinx Proceeds.
(a) Statements. With each, payment of Net Sale
Proceeds. or Net Refinancing Proceeds, Tenant shall furnish to -Landlord a .statement, certified by its managing' general partner, which statement shal], show•a detailed breakdown of all items necessary for the calculation of .each component thereof, including, with respect to Net Sale Proceeds, the Gross Proceeds, Approved Deductions, and Closing Costs used in calculating such Net Sale Proceeds. Tenant shall keep and maintain at all times full and accurate books and
records adequate to correctly reflect each such item, which books and records shall be kept by Tenant as required by Section 3.2.2.6 and shall b. available for Landlord's
inspection, copying and review as provided in such Sec- tion 3.2.2.6.
• (b) Dispute Notification and Resolution. Land-
lord may notify Tenant within ninety, (90) days after Land- lord's receipt of its shari.of any. let Sale Proceeds or Net Refinancing.Proceeds.that the Landlord. disputes any computa- tion or item. contained 'in any portion. Of • the statement submitted with such Proceeds.. In,'th. event Landlord so notifies Tenant; the Parties shall meet.snd attempt in good faith . to resolve such. disputed items within ten (10) days.
If the Parties are unable to resolve ,such disputed items, the dispuxe shill be.submitted to an :independent certified public .accountant for .'resolutions which 'r*solution shall be finer. The independent certified publi�c'accountant shall be .selected in the manner provided .for selection of such an accountant under Section.5.7.3(b) above". The fees of such accountant shall be .paid.. by Landlord' unless such review shall indicate that the computation.'resulted .in an underpay- ment of the Nit.Sale Proceeds or the Refinancing Proceeds in an amount exceeding three percent (3) of the amount actual- ly owing to Landlord, in which case Tenant shall pay all such fees.. Tenant shall pay .any additional amount due to Tenant within ten (10) days after they resolution of such dispute, together with interest thereon from the date such payment was originally due until the date paid at the De- fault Rate.
5.7.5. Exercise of Option to Purchase.
If the "Option to Purchase" the Leased Premises pursu-
ant to.the provisions of Section 1619 is exercised prior to the repayment -of the outstanding balance of the Agency's -Loan (to- gether with all iccrued-and unpaid interest thereon), then such outstanding balance (together with all accrued and unpaid inter- est•thereon) shall become immediately .dui"and payable and shall be added to the "Purchase Price" .determined pursuant to the 0580D050.051/003
CM8 9043 1205
CONFIDENTIAL
-24- 091389-.14
Exhibit 2
161
connection with the provisions of Section 16.19 and paid in payment thereof.
5.7.6. Application of Governmental Grant.
Notwithstanding anything in this Lease to the contrary, the amount of the Agency's Loan to be ,disbursed to Develop- er/Tenant shall be reduced by the amount of any grant(s) ("Gov- ernmental Grant"), if any, .which Landlord secures from any gov- ernmental body in connection with the..implementation of the DDA, to the extent that such grant- is to be applied and is thereafter applied directly or indirectly to payment of the costs of con- structing .any of the offsite improvements for which Tenant is responsible under the terms of this Lease ("Developer's Offsite Improvements").
5.7.7. Landlord/City's Installation of Developer's
.Offsite Improvements.
..In addition to the reduction provided for under Section
5.7.6 above the amount of the Agency.' s Loan to be disbursed to Developer. Ind Tenant shall also be reduced by the amount of any direct,. documented expenditures (the "Offsite Expenditures") Landlord or City may -incur in designing, constructing, engineer- ing.or-installing any of the'Developer's .Offsets Improveaents.
It is currently contemplated by the Parties that, at the least, certain traffic control and- signal modification improvements comprised within Developer's Offsiti Improvements will be per- formed by the Landlord/City on behalf -of Developer and,Tenant.
ARTICLE 6. REPAIRS AND MAINTENANCE
6.1 Landlord's Nonresvonsibility.
. During the Tern of this. Lease, Landlord shall not be required to maintain or make any repairs or replacements of any nature or description whatsoever to the Leased Premises or the improvements thereon.. Tenant hereby expressly waives the right to require. Landlord to makeany such repairs or to make any such repairs,at the expense of Landlord ti provided for in'any statute or law in effect-at..the time of execution of this Lease, or in any other statute or law which may hereafter be enacted.
6.2 Tenant's Duty to Maintain Premises.
Except as specifically otherwise provided for herein.
throughout the.Tera of.this..Leass Tenant shall, at Tenant's sole cost' and expanse, maintain 'the Leased Preaiiises ,and the= iaprove- meats now or hereafter located on the Leased Premises in first class condition and repair and .in. eccordance.with (i) all appli- cable" Governmental Restrictions' and (ii) all applicable rules, laws,. ordinances, ordeis,.znd regulations of any insurance compa- ny insuring all or any part of the 'Leased Premises or the 0580D050.031/003
-25- 091389-14
CMS 9043 1206
CONFIDENTIAL
Exhibit 2 162
improvements thereon or both, and Tenant shall make whatever re- pairs and replacements art required by such enactments.
6.3 Repair: Destruction.
Tenant shall promptly and diligently repair, replace or restore all damage.to or destruction of all or any part of the improvements on the Leased Premises resulting from any cause.
Said. repair, replacement or restoration shall be commenced as soon•as reasonably possible,., but in no. event later than ninety (90).days from. the date of such damage. or destruction, and shall thereafter be pursued to.completion with diligence. The comple- ted work of repair, restoration. or replacement shall be equal in value, quality, and use - to the' condition , of , the. improvements before the event giving rise t� such work. Landlord.shall not be required to furnish any servicea or facilities- or to make any repairs' or alterations of my . kind in .or on :the Leased Premises in connection .with such work by Tenant. Landlord say elect to perform any obligation of Tenant under this.Sect.ion.upon Tenant's failure or refusal to do'so.. following thirty_(30) days written notice. Such an:election by. Landlord to perform any obligation of Tenant:under this Section shall not.constitute a waiver of any right or remedy for tenant's: default, aitd: Tarrant shall promptly reimburse Landlord.for all expenditures.incurred.by Landlord_in performing. Tenant's `ob ligitions,_.,together:with interest thereon at the Default Rate from the ditt of disbursement by Landlord until the date ..of repayment by Tenant. Tenant shall indemnify, defend, and hold Landlord and.Citj;- and their.Representatives, harmless against all Losses and Liabilities reiultirtg from Land lord's performance. of Tenant's covenants. iii such work of repair, replacement or. restoration performed by Tenant shall comply with all o -f the requirements imposed with respect to Changes to improvements' sit forth in Section 5.4 of this Lease.
No deprivation, impairment, or limitation.of use resul- ting from any damage., destruction, event or work contemplated by this Section shall entitle Tenant to any -offset, abatement. or reduction in Rent, nor to any termination or extension of the Term hereof.
ARTICLE 7. LEASEHOLD FINANCING
7.1 Definitions: Leasehold Morttage: Lender.
The term "Leasehold Mortgage" means any note and the
mortgage, deed of trust, or other security instrument securing such note and constituting a li.n., on theestate created by this Lease. The Construction Loan(s) and the _Permanent Loans) de- scribed in. Sections 4.4.1 and 4.4.2 of the DDA are included withinthe definition of a Leasehold Mortgage, and any reference to a Leasehold Mortgage shall include a reference to such Con- struction Loan(s) and Permanent Loan(s). The term "Lender" shall mean the owner and holder of the Leasehold Mortgage.
0580D050.051/003.
-26- 091389.-14
CM8 9043 1207
CONFIDENTIAL
Exhibit 2 163
7.2 Conditions To Obtainint Leasehold Mort:a...
Notwithstanding anything which is or appears to be to
the contrary in this Lease, Tenant shall not encumber the.est.ate crea,ted.by this- Lease except as expressly provided in this Arti-. cle 7.
Pursuant to Sections 4.4.1 and 4.4.2 of the.DDA, and in accordance with the. requirements set forth therein, Tenant has obtained. or will obtain Construction Loan(s) end Permanent Loan(s) for the purpose of financing construction of the Improve- ments upon the Leased Premises' by .Tenant. .Prior to issuance,; of a Certificate of Completion for all. of those !improvements, Tenant shall notencumber the: estate•created by this Lease by any other Encumbrance unless'such Encumbrance is first approved in writing by Landlord. :Tenant shall utilize the proceeds of the Construc- tion Loan solely for payment of the "Development Costs" (as defined in Section 4.4 of the DDA).
Subsequent to issuance of a
for the Leased Premises, Tenant•shall'
the estate created by this Lease: with
gage 'acceptable to Landlord; .provided,
gage shall comply with the following
quirements:
Certificate. of Completion
have the right to encumber
any other Leasehold Mort-
that such -Leasehold Mort,'
'terms, conditions and re -
(a) The Leasehold.Mortgage shall provide that any
proceeds from fire and 'extended coverage insurance shall be used fqr repair. or reconstruction of,,the leasehold improve- ments and not to repay all or a part of the Leasehold Mort- gage;
(b) The Leasehold Mortgage shall contain pro-
visions requiring that all notices of default under said' Leasehold Mortgage must be sent.to Landlord and Tenant and' that Landlord shall have the right. but trot the obligation,, to cure any default if Tenant fails to.. do so;• that neither, Landlo.rd'a right to cure any default nor any exercise of such a right shall constitute an assumption of liability under the Leasehold Mortgage;
(c) Promptly upon the recording of the Leasehold
Mortgage, Tenant shall, at its.own expense, cause a copy of the Leasehold Mortgage to .be delivered to Landlord and shall cause to be recorded in the Office of the County Recorder of Los Angeles County. a:written request executed and acknowl- edged by Landlord for a copy of all notices of default and all notices'of sale under the Leasehold'Mortgage as provided by applicable lay. .Inclusion. Of a request for notice having the effect described above in the body of the recorded
Leaiehold"Mortgage shall constitute compliance with this provision;
0580D050.051/003
CMS 9043 1208
CONFIDENTIAL
-21- •091389-14
Exhibit 2 164
(d) The Leasehold Mortgage shall be subordinate
to the Landlord's fie interest -in the Leased Premises and the Landlord's interest under this Lease, and shall not CoVer-WITtfireiTest in real property other than the leasehold estate created by this Lease; and
(e) .The Leasehold Mortgage shall not permit or
authorize-, or be construed to -permit or authorize, any Lender to devote the Leased Premises to any uses, or to con- struct any improvements thereon.. other than those uses and improvements provided for and authorized.by this Lease.
7.3 Lender's RiRhts,.
During the continuance of any Leasehold Mortgage per-
mitted by this. Lease and the DDA, including any.Construction Loan or. Permanent Loin, and until such time ai the lien of any Lease- hold Mortgage has been extinguished:
(a) Landlord shall not agree to any mutual termi-
nation nor accept any surrender or termination of this
Lease, nor shall Landlord 'consent to any material amendment or .modification..of this Lease without the prior written consent of Lender; provided, thatthe provisions of this subsection shall riot apply if such -cancellation or surrender is .the result -of -action taken. pursuant to the provisions of the United States •Eankruptcy Code, 11 U.S.C. 6101, it seg; • (b) Notwithstanding,that an Event of Default, as
defined .in Section 13:1 of this. Lease,' shall have occurred.
Landlord. shall not have. s. right to terminate this. Lease unless (i) Landlord shall have given.written notice of such Event of Default' to any Lender"who has.requested such notice under. this provision and (-ii) Lender_ shall have failed, within sixty:(60) days after-servici of such notice. to cure said .Default; provided, that if said .Default concerns the payment of any. monetary obligations of Tenant under this Lease; Lender shall 'remedy said Default, within twenty (20) dayi: after ,service of such notice. If. the Default is such that it cannot reasonably be cured. within said sixty (60) day period or is'such that possession of the -Leased Premises is necessary to remedy the Default, Lender shall be allowed a reasonable time after the. expiration of said sixty (60) day period within which to remedy such default if-(i) Lender shall .have fully cured any. default . in the ,payment of any monetary obligations of Tenant. under this Lease within twenty (20) days after.notice of the Default and shall
continue to.pay currently. such monetary obligations as and when the same.are due, and (ii)_Lender shall have acquired Tenant's estate in the Leased Preaises..created hereby or commenced foreclostire or' other appropriate proceedings in the nature thereof within:sa.id sixty (60) day period and is diligently prosecuting any such proceedings to completion; 0580D050.051/003 ,
-28- • 091389-14 .
CMB 9043 1209
CONFIDENTIAL.
Exhibit 2 165
(c) Any Event of Default under this Lease which
in the nature thereof cannot be remedied by Lander shall be .dined -'to be remedied if (i) within sixty (40) days after receiving * written .notice fro■ 'Landlord setting forth the *natuis. of_.such Event of Default, or prior thereto, Lender shall have acquired Tenant's estate.in the Leased Premises created hereby or..shall have commenced foreclosura.or•other appropriate proceedings in* the -nature thereof, (ii) Lender shall diligertly prosecute.any.su.ch proceedings to comple-• tion, (iii)_Lendar shall have fully cured any default in the payment of any monetary. obligations of Tenant hereunder within twenty (20) dayt after notice of the Event of Default and shill thereafter cottia_ue.to;faithfully perform all such monetary obligations, a'nd (iv) miter wining possession of the.Leased Premises.,. Lender parforas.all other obligations of Tenant hereunder as and whenthe same are due;
(d) In the event Lender acquires Tenant's estate
in the .Leased. Premises, Lender's assumptions of Tenant's obligations and liabilities hereunder shall continue only for the Period of time that Lender remains Tenant hereunder. .During such period of time.,.Lender,shsll, subject to perfor- mance of all of la - obligation* :is a .Tenant, be entitled to all of the rights. of .a Tenant under this Lea#e. following .Lenders..acquisition of Tenant's interest in this Lease, the Lender shall be entitled: 'to . assign; , its * interest in this Lease;. provided, that it shall..first.secure Landlord's prior written consent to...Such Transfer. .Landlord agrees not to unreasonably withhold its conssnt'to' such.. a.Transfer so long' as the proposed Transferee -is (i) financially• responsible, (ii) of good standing. and' repute and (iii) able to demon- strate the capabi.lity.to. manage. developments of the size and character of the improvements located on the Leased Premises (Collectively the "Transfer Criteria"). Landlord shall
approve or .disapprove any. Transferee -.proposed by Lender within fifteen (15) days of 'a request Med. by Lender for such approval or disapproval and Lender's submission to landlord of al-I.financial.information considered necessary by Landlord to assess whether the proposed Transferee meats the Transfer Criteria;
(e) On Lender's acquisition of the Tenant's
interest in this.Lease by foreclosure,_or assignment in lieu of foreclosure, Landlord shall enter into a new Lease with Lender covering the premises covered by the foreclosed Leese it Lender (1) gives Notice of request within thirty (30) days after .foreclosure, (2) pays all costs resulting from the 'preparation Ind. execution of. such'. new Lease, and (3)* remedies all defaults of Tenant under .this `Lease prior to* execution of the. new Lease. .The. n.w Leas, shall be for the remainder of the term of the foreclosed: Lease, effective at the date of foriclosurs,'at the -rent and on the covenants agreements, conditions, provisions, restrictions, and
0580D050.051/003
-29- 091389-14
CMB 9043 1210
CONFIDENTIAL
Exhibit 2
166
limitations contained in the foreclosed Lease. Upon
subsequent assignment by Lender of the new Lease, Lender shall be released from all liability under the new Lease; and
(f) If, is _connection with the-_fintacing by
Tenant of the Improveitentf-and- this. ' Lease, Lender or Ten- ant's joint venture partner approved by Landlord pursuant to Section 2.4 of the DDA requests an amendment of this Section
7.3 relating.to Lenders 'rights, Landlord agrees not to unreasonably withhold its. consent to any Such amendment; provided, that Landlord Shall not be required to consent to an amendment or. addition. if it. would imp;ir Landlord's rights or increase Landlord's obligations under this Lease, or if such .amendment•or. addition would decrease the value of Landlord's interest :in this Lease or the value of the Leased Premises'or Landlord's fee or reversionary interest therein.
7.4 Obligations of Construction Lender.
Notwithstanding anything. that is or appears to be to
the contrary in this Lease, the Construction Loan lender ("Con- struction Lender") shail.also be subject to the following obliga- tion and restriction. th.theesvent of -a Default by Tenant in the .construction of any. of the Improvements' on the Leased Premises, the.. Construction Lender's _ right to curl' such' Default shall be conditioned upon the Construction Lender's express assumption, by a written agreement satisfactory -.to Landlord, of Tenant's obliga- tions to Landlord'to construct the Improvements in accordance with the DDA and this Lease.
7.5 Right of the Landlord to Cure Defaults Under
Encumbrances.
In the event of a default or breach bythe Tenant under
any Encumbrance, including the Construction Loan, Permanent Loan and any other Leasehold Mortgage affecting all Or. any portion of the Leased Premises'or*Tenant's leasehold interest in the Leased Premises, the Landlord may, but is not obligated to, cure such default prior to the (i) completion of any foreclosure, (ii,) termination of any lease,. or (iii) completion of any pro- ceedings b.y which such Encumbrance is retained or granted back.
In such event, Tenant shall immediately reimburse Landlord for all costs and expanses incurred by the Landlord in curing the default, together with"interest thereon at the Default Rata from the date of payment by Landlord until the date of repayment by Tenant, and such amount shall be a lien upon Tenant's leasehold interest in the Leased Premises pursuant to this Lease, with power of sale.
05800050.051/003
CM8 9043 1211
CONFIDENTIAL
-30- 091389-14
Exhibit 2 167
ARTICLE 8. ASSIGNMENT AND TRANSFER
8.1 Assignment of Landlord's Interest in Lease or the
Leased Premises; Recoupment Fee.
It is anticipated that the. Landlord .may Transfer the
Leased Premises, this 'lease, all or a .portion of its interest thereunder, and/or all or•a portion° of the 'payments that are payable to it by Tenant pursuant to this Lease. Tenant hereby consents and agrees to any such Transfer which Landlord considers necessary or proper, regardless of tha.•reason or reasons for which .Landlord makes such Transfer and _'regardless of the entity that is the Transferee.thereunder.. Tenant specifically agrees to such a Transfer to the San Antonio Services Corporation, Inc., a California non-profit corporation. •
As additional consideration for its. development oppor- tunity under this Lease; tenant. agrees to. Pay a recoupment fee ("Recoupment Fee") to Landlord's Transferee in lieu of the amount of any..paynaents due under this Lease to the extent that Landlord Transfers _ or attempts to .Trans.fer such payments to mother person or. entity but it is.detetmined.that Such parson or entity is restricted by law from receiving:any or all. of. such payments. In .the event that Tenant*ig required 'to pay. the Recoupment Fes, Tenant Shall receive & credit ajisinst the riot due under this Lease in the amount of the Recoupment Fee paid to such other person or entity.
8.2 Transfer of Beneficial Interest. or Ownership of
• - Tenant,* Selection Of Management Entity and Assign- ment of Beneficial Interest An -or Ownership of
Entity: Subleases, Licenses or Concession Agree-
ments.
The restrictions contained in this Section 8.2 upon any Transfer to any Transferee are imposed because Tenant's qualifi- cations are of particular concern to Landlord, and Landlord has entered into this*Lease.in reliance upon Tenant's qualifications, skill, reputation and experience. Any purported. Transfer which is prohibited by this Section 8.2 or Section .7.2 shall be ipso facto null and void,. and:no voluntary or involuntary successor to. any interest of Tenant under such a Transfer shall acquire any rights pursuant to this Lease. • These restrictions on Transfer shall be binding on any successors, heirs or permitted Transferee of Tenant.
8.2.1. Transfer of the. Lease, the Leased Premises.
or the Improvements to be Constructed There-
on.
Except as otherwise provided in this .Lease or the DDA. prior to recordation of a Certificate of Completion pursuant to 0580D050.051/003
-31- 091389-14
CMB 9043 1212
CONFIDENTIAL.
Exhibit 2
168
Section 6.5 of the DDA and issuance of Certificate; of Occupancy for all the. Improvements to be constructed on the Leased Premises in accordance with the DDA.and this. Lease, Tenant shall not Transfer all. -or any "portion of its rights under or interest in thii Lease, the_ Leased Premises, or the iaip.rovements constructed thereon without- the- Landlords prior written consent, which consent may be granted or withheld in Landlord's sole discretion. .After recordation of a Certificate of,Completion pursu- ant to Section 6.S.of the DDA and issuance of Certificates of - Occupancy for of all the Improvements to be constructed on the Leased Premises in accordance.with the DDA and this Lease. Tenant shall not Transfer all or any portion of".the.Leased Premises, the •_improveiaents constructed thereon, or its rights under or interest .in this Lease, without the prior written consent:.of.Landlord in each instance, which consent shall not beLunreasonablp withheld.
The failure of the Landlord to consent to anY proposed Transfer of. Tenant's rights under or interest in: Leese, the Leased Premises'or the improvements constructed thereon shall be deemed to be reasonable if the proposed"Transferee is not (i)_ as finan- cially responsible al Tenant was at the tine_ of . i,ts execution of this. Lease, (ii) of good "standing and repute, and (iii) as asps- rienced as Tenant . in Managing -developments of the -size and char acter of. the Improvements to be`construetid on the Leased Premis- es. :Landlord shall not be.required to consent to Any Transfer if Tenant is then in Default under this Lease.
If Landlord approves an assignment of Tenant's rights
under or interest in the -Lease,- the Leased Premises, or the improvements constructed thereon, at a. condition"to such approv- al:
(a) any assigneeapproved pursuant to this Sec-
tion shall expressly assume liability with Tenant under this Lease for all of Tenant's obligations; and
(b) notwithstanding any such assignment, Tenant
shall remain fully responsible to Landlord in accordance with the terms and provisions of this Lease.
8.2.2. Transfer of Ownership and/or Control of
Tenant.: Retention of Hanaxement Entity and
Transfer of Interest Therein.
For purposes of this Section 8.2.2, the term "Third
Party' shall mean and include "any person or entity that-IMF'acq ed or hereafter acquires any interest in Tenant, or any person or entity. that is a, joint. venturer or affiliate of Tenant with respect to all dr any portion of the Leased Premises and/or this Lease, or any person or entity that"is or becomes a limited and/or general partner of any such joint venturer or affiliate of Tenant with respect to all or any portion' of the Leased Premises and/or this Agreement.
0580D030.0S1/003
-32- 091389-14
CMB 9043 1213
CONFIDENTIAL
Exhibit 2 169
(a) Except as otherwise provided in the DDA,
prior to.recordation of a Certificate of Completion and issuance of Certificates of Occupancy for the Improvements constructed on the Leased Premises in accordance with this Lease, Tenant shall, not suffer or. permit the Transfer of ■ ore'than twenty=fivepercent (25x) of its present Ownership and/or Control. .in the aggregate taking all Transfers into account -on a cumulative basis- (but without, double counting of successive transfers by: Third Parties of the same inter- e st in the Ownership. and/or Control of_Tenant) nor allow the removal, change,or 'replacement of kits general partner(s), without the prior written consent of Landlord, which consent may be granted or withheld in the sole discretion of Land- lord.
(1) In the event that any Transferee of
Tenant is a corporation,'partnirship or trust, unless
the prior written 'Consent of- Landlord is obtained,
Tenant shall 'not suffer or. permit 'any Transferee to
Transfer more than forty-nine (49%) of such Transfer-
ee's Ownership' and/or* Control existing at the time it became a Transferee of Tenant, in'the aggregate taking
all Transfers into account on-i cumulative basis.
(2) In the .event that. any Third Party is a
corporation:, partnership 'or trust, unless the prior
written.consen.t .of Landlord:is obtained,_ Tenant shall not suffer oil permit any Third 'Party. to Transfer more than. fortynine (49Z).. of such :Third: Party's Ownership and/o=Control existing at the tisis it became a Third
Party, in the aggregate taking all Transfers into
account on a cumulative basis.
.(b) After recordation.of.a Certificate of Comple-
tion pursuant•to Section 6.5 of.the DDA and the issuance of Certificates of Occupancy for all' of the Improvements to be constructed" on the Leased Premises in accordance with the DDA and this Lease, Tenant shall flot Transfer more than forty-nine percent._(49%) of its present Ownership and/or Control,.in.tha aggregate taking all Transfers into,account .on a cumulative basis, without. the prior written consent of Landlord, which consent shall not be unreasonably withheld. (1) In the event that any Transferee -of
Tenant is a corporation, partnership. or trust, unless
the prior written consent of Landlord is obtained,
which. consent. shall not be unreasonably withheld,
Tenant shall not suffer or permit any Transferee to
*Transfer.more than forty-nine percent .(49x) of such
Transferei'.s,ownership and/or.control existing at the
'time it became a Transferee of Tenant; in the aggregate taking all Transfers into "account on a cumulative
basis.
0580D030.051/003
CMS 9043 1214
CONFIDENTIAL
-33- 091389-14
Exhibit 2 170
(2) In the went that any Third Party is a
corporation,. partnership or trust, unless the prior
written consent of Landlord'is obtained, which consent
shs11 not be unreasonably withheld, Tenant shall not
suffer or .permit any. Third Party to. Transfer more than forty-nine percent (49x) of Stich Third Party's owner-
ship...and/or control existing at the time it became a
Third Party, in the aggregate taking all Transfers into account on a cumulative basis.
(3) The failure of .the Landlord to consent
to. any proposed Transfer of the 0wnership and/or Con-
trol of Tenant shall be deemed to be reasonable if the
proposed Transferee is not (i) es financially responsi- ble as Tenant was at the tine of its iiecution of this
'Lease,.(ii) of good standing end. impute, and (iii) as experienced as•Tenantinaanajing developments of the
size and character of thi isprovements located on the
Leased Premises.
(c) Unless the prior written.consent.Of Landlord
is obtained,. Tenant shall not, retain or authorize any person or "entity. to- perform •any management. aitd/or'.supervisory func- tions. („Management .EntityN)with r.speet .to ,the development and/or operation of the Leased Preai$es or any of the Ia- provements thereon. 'In the. event that. Tenant retains a Management Entity., Tenant shall not pszai.t said Management Entity to assign any interest. in or 'rights under any agree- ment. sxid Management Entity. may have' concerning or relating .to the Leased -Premises, nor shall Tenant.perait Said Manage- ment Entity, or any person or entitywhich is a stockholder or or a generat or limited partner i. s n aid- Management Enti- ty., or any person or entity . which "Cs a. Joint venturer or affiliate of said Management Entity':'to .Transfer more than forty-nine percent (49x) of its present Ownership and/or Control in the aggregate, unless the prior written consent of Landlord is obtained.
8.2.3. Concessions_, Licenses and Subleases.
Notwithstanding anything above which is or appears to
be to the contrary, including any restrictions on Transfer con- tained in Section 8.2 of this Lease, subject to Landlord's prior written consent, Tenant shall be entitled at any time to enter into licenses, subleases and concession agreements (collectively, "Subleases") concerning the Leased Premises.
Any such Subleases shall be in writing, and, in order
to obtain. Landlord's approval, Tenant must submit copies of all written,agreements proposed.to be entered into between Tenant and the proposed licensee, concessionaire or sublessee and any other documents relevant thereto. In addition, Tenant shall provide Landlord with that information regarding the proposed licensee, 05800050.051/003 .
-34- 091389-14
CMB 9043 1215
CONFIDENTIAL
Exhibit 2
171
concessionaire or sublessee sat forth in Section $.3, and any other inforaation Landlord may reasonably request.'
• Each Sublease .shall explicitly provide that it is
subject and subordirste .to.the provisions of this Lease; provided that, with Landlord's written consent and subject to -Landlord's• reasonable determination that such provisions could'not have an adverse impact. on Landlord's. revenues under this Lease, or the value of this Leas. cal. the Leased Premises to the'Landlord, a Sublease of any contiguous, space containing net less than four thousand (4,000) square feet _or a..Sublease of any free-standing pad may contain provisions.; in a form satisfactory to Landlord and Lender(s), providing that such licenee'si.concessionaire's or sublessee'$ possession and use shall not :be disturbed by Landlord or Lender(s) so long as (i) the licensas.concessionaire or . sub.Ieisee performs the 'provisions of, the Sublease and is not in default under the terms.of ths'Sublease, and.(ii) the licens- ee, concessionaire or sublessee attorns to Landlord or Landar(s). according to their respective interests.
Each Sublease shall further provide that any percentage. rents .to be paid to ;the sublessor under the terms of that Sub- lease shall be -based upon. the. gross proceeds of the licensee's, concessionaire'$ .or .sublesses`s businesses. and .shall .be subject to• such other provisions as are necessary to ensure that the character of such _per.centage rents will not result in the Rent-. due .hereunder being treated as.unrelat.d businiss.taxable income under Internal Revenue Coda 'Section 912 and any regulations applicable thereto, or under any successor statute or regula- tions.
Landlord's refusal to consent to a proposed Sublease or the proposed licensee,..concessionaire. or Sublessee thereunder shall be. considered to be reasonable it based on any of the • following grounds (as determined by Landlord in its reasonable discretion):
(a) The proposed licensee, concessionaire or
sublessee does not, in Landlord's reasonable opinion, pos- sess adequate financial resources or adequate business
acumen and experience;
(b) The term .of the Sublease would extend beyond
the Term of this Lease, or otherwise limit, restrict or impede Landlord's exercise of any of its rights and remedies hereunder;
(c) The proposed Sublease does not contain the
non-discrimination provisions set forth in Section 4.4
hereof;
(d) The proposed Sublease does not contain a
provision satisfactory to both. Landlord and all Landers 0580D050.051/003
-35- 091389-14
CMB 9043 1216
CONFIDENTIAL
Exhibit 2
172
requiring the sublessee, concessionaire or licensee, in the .vent that Tenant. Defaults under this Leas., to 'attorn to Landlord .or Landlords successors or assigns, or, in the event of a foreclosure of the L.asehold•Mortgage, to the Lander an that Leasehold Mortgage;•
(s) ..The execution of 'or operation under any pro-
posed Sublease would result in the violation of any applic- able Governmental Restrictions;
(f) The proposed. Sublease is not in writing or
does not provide that, after execution, it will be repro- duced and supplied to Landlord on demand;
(g) The .proposed Sublease fails. to.provid. that
Tenant shall not accept, directly or indirectly, more than three (3) _months prepaid rent from any licenses, conces- sionaire or sublessee,- not including *any good faith bona -fide security deposit or' other security deposited with Tenant at the time of the execution of such Sublease;
(h) The proposed Subl.as..fails to include provi-
sions prohibiting._.its Transfer or the Transfer of any inter-. est therein or thereunder without -the consent of Landlord, which consent shall not be unreasonably withheld;
(i) The proposed_ Sublease fails to explicitly
provide.that it shall not be amended or altered without Landlord's prior written consent;
(j) The proposed licensee, concessionaire or
sublessee would have .a materially adverse impact on the quality or ambience of the Shopping Center; or
(k) .The. proposed licensee, concessionaire or'
sublessee would have an edverse impact On the Annual Per- centage Rent and/or profits generated by the operation of the Shopping Center.
In the. event that Tenant submits, a written. request to Landlord for its approval of.(i) a Sublease, or (ii) a Transfer .pursuant to .Section 8.2.3(h), laindlord shall approve or disap- prove said Sublease or Transfer, and the proposed sublessee, licensee or concessionaire thereunder, in writing within ten (10) working days after Tenant's written request.
8.3 Investis;ation of Proposed Transferee: Costs.
In the event that Tenant requests -Landlord's written
consent to 4. proposed Transfer pursuant.to Section 8.2 of this Lease; Tenant agrees to. Provide Landlord with such. information, including.financial'statements and tax returns, as Landlord may reasonably require in order to evaluate tha'solvency, financial 0580D050.05.t/003
CMB 9043 1217
CONFIDENTIAL
-36- 091389-14
Exhibit 2 173
responsibility and relevant business acumen and experience of any proposed Transferee.
At the tine of any request by Tenant for consent to a
Transfer pursuant to.Section 8.2, Tenant shall make such request in writing and shall submit to ,Landlord (1.) all bindini agree- ments and documents evidencing and/or relating to. the the circum- stances.surrounding such Transfer, and (ii) a certificate setting forth representations and warranties by Tenant and the Transferee to Landlord sufficient to a.tabliah and insure that all require- ments.of Section 8.2 have been and will be met. With respect to a proposed assignment pursuant to Section 8.2.1 or 8.2.2, .land- lord agrees' to make..its decision on Tenant's request for consent to such an assignment., .as promptly as possible, and, in any event, not.later than thirty (30) day's after Landlord receives the last of the items required by the preceding sentence.
Except as otherwise provided in Section 8.2, if Land-
lord consents to any Transfer 'pursuant to that Section, such consent shall not be effective unless and until Tenant gives notice of the Transfer and a copy of any documents effecting and/.or.evidencing such Transfer to.Landlord, end unless and until any such.Transferee (other than a sublessee, licensee or cancel. sionaire) assumes all of the obligations and liabilities of Tenant under this Lease. .
In order to enable Landlord to adequately investigate
the proposed Transferee's `qualifications, Tenant shall pay within five (5) days of Lartdlord'S.writtanrequest therefor, all actual expenses incurred by Landlord and City in connection with the investigation of the proposed Transferee, including attorneys' fees and costs and all consultant fees.
ARTICLE 9. TAXES AND IMPOSITIONS
9.1 • • Tenant To Pay Impositions.
In addition to all other payments required to be paid
under this Lease, Tenant'shall pay any and all taxes, assess- ments, and other charges of any .description including, without limitation, any..possessory ". interest tsz..and any 'assessment or Charge (collectively, "Impositions"). levied or assessed from the Effective Date until the termination of this Lease by any govern- mental agency or.entity on or against the Leased Premises or any portion, thereof, or on or against any interest in the Leased Premises (including the leasehold. interest created by this Lease), or on'or against any .improvements„or other property in or on the Leased Premises. The .timely payment of the above Imposi- tions is'a material tar. of this'Lease, and shall constitute an additional Rent obligation hereunder.
If, by law, any such Imposition is payable, or may, at
the option of Tenant be paid, in installments. Tenant may pay the 0380D030.051/003
-37- 091389-14
CMS 9043 1218
CONFIDENTIAL
Exhibit 2 174
sage, together with any accrued interest
such Imposition, in such installments
respectively become due and before any
or cost say be added thereto for the
installment and_interest.
9.2 Proration
of Impositions.
on the unpaid balance of
as those installments
fine, penalty, interest,
nonpayment of any such
A11 Impositions levied.or assessed on or against the
Leased Premises during a .tax year (commencing on July 1 and ending on'June 30) which is partially included within the term of this' Lease shall be prorated. based on a 365 day year. between Landlord and Tenant as if Landlord were a'private party; so that Landlord shall be ' responsible for the portion, if any-, of such Imposition attributable to any period'prior to. the commencement or subsequent to..the expiration or termination of this Lease, and Tenant shall pay the portion thereof attributable to any period during -the term of this Lease. Ofl service .of- a written request by Landlord, Tenant shall" promptly pay to -Landlord Tenant's share of such Impositions paid by Landlord on Tenant's behalf.
9.3 Payment Before Delinquency.
Subject to Tenant's.ri4ht. to contest under Section 9.4. any end.all Impositions and installments of -Impositions required to be paid by Tenant midst" this. Lease shall be paid by Tenant prior_to.delinquency. and copiel.of the official and original receipt for the payment of such Imposition or installment thereof shall immediately be given to Landlord.
9.4 Contest of Imposition.
Tenant shall have the right to contest, oppose, or
object to the amount or validity of any Imposition levied on or assessed against .the.Leasad /kemises or any portion thereof and may in good faith diligently conduct any necessary proceeding to prevent or void or reduce the -same; provided, however, that the contest, opposition, or objection must be filed.before the Impo- sition at which At. is directed becomes delinquent if such con- test, opposition or objictio —As required to be made or filed prior to payment of the'Imposition being, challenged, and written notice of the contest, opposition, or objection must be given to Landlord at least thirty (30) days before the date the Imposition becomes delinquent. No such contest, opposition. or objection shall be continued or maintained. after the date on which the Imposition at which it is directed .becomes 'delinquent unless Tenant has mat one of the following conditions:
(a) Paid such Imposition under protest prior to
its becoming delinquent; or
(b) Posted such bond or other security, satis-
factory to Landlord, as is necessary to protect Landlord and 0580D050.031/003
-38- 091389-14
CMS 9043 1219
CONFIDENTIAL
Exhibit 2 175
the Lased Premises from any lien arising from such Im-
position.
Landlord shall not be required to join in any pro-.
ceding or contest birought by Tenant unles* the provisions. of any law require that the proceeding or contest be brought ' by or in the nazi* of .Landlord or any owner of .the Leased Premises. In thit case, Landlord shall 'join in the proceeding or contest or permit it to be brought in Landlord's name but such action shall be without cost to Landlord.
9.5 Tax Returns And Statements.
Tenant shall, as between Landlord -and Tenant, have the duty of attending to, preparing -,.making, and filing any state- ment, return, report, or Other instrument- required or permitted by law_in Connection with the determination,. equalisation, reduc- tion, or payment of any.Impositi'on that is or may be levied on or assessed against the'Leased Premises, or any portion thereof, or any .interest therein, or any improvements or other property on the Leased Premises.
9.6 Indemnification.
Tenant shall indemnify, defend and hold Landlord and
City, and their Representatives,, and Landlord's -property (includ- ing the. Leased Premises and any' improvements now or hereafter located on the Leased Premises) free and harmless 'from any Losses and Liabilities resulting frog any Ispositions. required by this Article to- be paid by Tenant, and; frogs all" interest, penalties, and other sums imposed thereon, and froi any sale or other pro- ceeding to enforce collection of any such Imposition.
9.7 Payment By Landlord.
Should. Tenant fail to pay within the.:time specified in this Article any Impositions required by this -Article to be paid by Tenant, Landlord -may, without notice to or demand on Tenant, pay,' discharge, or adjust such Imposition for the benefit of Tenant. In_"such.event, Tenant shall, on or before the first day of the next calendar. month following' any such payment by Land- lord, reimburse Landlord forth* full amount incurred.by Landlord in so paying, discharging, or adjusting. such Imposition, together with interest thereon at the Default Rate from the date of pay- ment by Landlord until the date of repayment by Tenant, and the above obligation'of Tenant -to reimburse Landlord shall be treated as and become a part of tenant's obligation to pay Rent under this Lease.
0580D050.051/003
CMB 9043 1220
CONFIDENTIAL
-39- 091389-14
Exhibit 2 176
ARTICLE 10. UTILITY SERVICES
10.1 Tenant's Responsibility.
During. the term of this Lease, Tenant shall pay, or
cause to be - paid. and shall indemnify, defend and hold Landlord and the property of Landlord harmless from all charges for water, sewage, gas, heat. air conditioning, light, power, steam, tele- phone service and a1_1 other services and utilities used, rendered or supplied to, on or in the Leased Premises.
10.2 Landlord Has No Responsibility.
Landlord shall not be required to furnish to Tenant or
any other occupant of the Leased Premises during the term of this Lease, any water, sewage, :gas, heat, air conditioning, light, power, steam, telephone, or any other utilities. equipment, labor, materials or services of any kind whatsoever.
ARTICLE 11. INSURANCE
11.1' Fire and Extended Coverage Insurance.
Throughout .the term of this Lease., Tenant, at no cost or expense to Landlord, shall keep or 'caul* to .be kept. for the mutual benefit of .Landlord and: Tenant,, a .policy of standard fire .insurance., with. es:tended. coverage and vandalism sad malicious 'mischief endorsements, insuring' all improvements located on or used in 'connection .with and appurtenant to the Lt,ssed Presises.
The amount _of. insurance required hereunder 'shall in no event be less than one hundred.percent (100%) of the full replacement cost of the improvements on the Leased Premises.
11.2 Cooperation in Obtaining Proceeds of Fire and
Extended Coverage.
Landlord shall, at no cost or. expense to Landlord,
cooperate fully with Tenant to obtain the largest possible recov- ery under all policies. required by Section 11.1._. The proceeds shall -be deemed to be held intrust by the recipient to the extent of the uses and purposes prescribed by this Lease.
11.3 Builder's Risk and Worker's Compensation Insur-
ance.
Before commencement of any demolition or construction
work on the Leased Premsiies, Tenant shall procure or cause to be procured,. and shall maintain or cause .to be.maintained in force until coapletion. and' .acceptance ot''thi" work (i) "ale risks" builder's risk insurance, including; coverage for vandalism and malicious mischief,_ in a form and amount and with a company reasonably•acceptable to.Landlord,.and (ii) worker's compensation insurance covering all persons employed in connection with work 0580D050.051/003
-40- 091389-14
CMB 9043 1221
CONFIDENTIAL
Exhibit 2
177
on the Leased Premises and with respect to whom death or bodily injury claims could be asserted against Landlord or the Leased Premises. Said builder's` risk insurance shall cover improvements in place and all material and equipment at the job site furnished under contract.
11.4 Public Liability Insurance.
Tenant, commencing on the Effective Date and continuing throughout the Term hereof, shall. maintain-, at no cost or expense to Landlord, with a reputable and financially responsible insur- ance company acceptable to Landlord, for the mutual benefit of Landlord and Tenant, comprehensive broad form general
ublic
liability insurance against claims. and- liability for personal injury, death, or property damage :arising from' the use, occu- pancy, misuse or condition of the Leased Premises, the improve- ments thereon, or any'adjoining areas or ways, which insurance shall.:provide combined single limit protection: of at least Five Million Dollars. ($5,000,000) for bodily injury or death to one or more persons-, and at, least One Million.Dollars ($1,000,000) for property damage;- provided, that, on the fifthanniversary of the Effective Date of.this Lease and eve five - S
("Insurance Coverage Adjustment. Dates" (.)above ptrescribed minimum coverages shall be, increased:to)pant aaount'e prescribl to ee d
greater of (i) the sumfof the required insuranc limits asp specified above, plus the product of those required: coverages aultiplied by the -percentage increase, if any,.in._the Consumer Price Index, all Urban' Consumers, for the Los Angeles -Long Reach -Anaheim Metropolitan area as published by ,the United:States Department of Labor between the'Effective Date of'thig Leese: and the applicable Insurance' Coverage Adjustment Date or (ii) the amounts customarily carried by developments of the size, character and nature of the development on the1Leased_Premises; provided, that in no event shall the above described -Minimum coverages be. reduced. •
11.5 Policy Form. Content And Insurer.
A11 insurance required by the provisions of this Lease
shall be carried -only with responsible insurance companies li- censed to do business in this state that are acceptable to Land- lord.
A11 such policies required by the provisions of this
Lease shall be nonassessable and shall contain. language to the effect that (i) any loss shall be payable notwithstanding any act or negligence of Landlord or City that might. otherwise result in a forfeiter. -of the insurance, (ii) the insurer waives the right of. subrogation against Landlord and City. and against Landlord's and City's:Representatives, (iii). the policies are primary and noncontributing with any insurance that say be carried by Land- lord or City,: (iv) the policies cannot be cancelled or materially changed except after thirty (30) days notice by the insurer to 0580D050.051/003
-41- 091389-14
CM8 9043 1222
CONFIDENTIAL
Exhibit 2
178
Landlord and City and (v) neither Landlord nor City shall be liable for any premiums or assessments.
Upon Tenant's execution and delivery of this Lease,
Tenant shall deliver to Landlord certificates of insurance evi- dencing the insurance coverages specified in this Article.
Tenant shall thereafter deliver to Landlord certificates of insurance evidencing the insurance coverages required by this Article upon renewal of any insurance policy. Tenant may provide any insurance required under this Lease by 'blanket insurance covering the Leased Premises end any other location or locations, provided that the specific. Policy of blanket insurance proposed by Tenant .is reasonably acceptable to Landlord. Landlord's review of such policy of blanket insurance shall be for the purpose of determining •if.it-provides the coverages required by this Agreement and does not adversely affect Landlord's interest in the Leased Premises or its: riihts hereunder. All policies shall neme.Landlord and its •successors and assigns and each Lender as an additional insured as.their interests may appear and shall have deductibility limits acceptable to Landlord, in its reasonable discretion.
11.6 Indemnification.
Tenant shall indemnify, defend and. hold Landlord, City and their Representatives; and_tha property of Landlord and City, including the teased Premises and'any improvements thereon, free and harmless from' any and all .Lossea and Liabilities • resulting from the use, occupancy or enjoyaent of the•Leased Premises by Tenant or any person thereon Or holding. under Tenant arising from any cause. The above indemnification includes, without limi- tation, any Liabilities arising'by reason of: .
(a) The death or injury of any person, including
Tenant or any person who is'an.employee or agent of Tenant, or damage to or destruction of any -property, including prop- erty owned by Tenant or by any. person .who is an eaployee or agent of Tenant, frail any cause whatever while such person or , property _ is in . or on the Leasid Premises or in any way connected with the Leased Premises or with any of the im- provements or personal property on said premises;
(b) The death or injury of any person, including
Tenant or any person who is an employee or agent of Tenant, or damage_to.or destruction of any property, including prop- erty owned by Tenant or'any person who is an employee or agent -of Tenant, caused or 'allegedly caused by either (i) the condition of the Leis"ed Premises_ or 'some improvement on said prewiies,'or (Li) set or omission on the Leased Premises by Tenant or.any person in, on, or about the Leased Premises with the permission 'and consent of Tenant;
0580D050.051/003
CMB 9043 1223
CONFIDENTIAL
-42- 091389-14
Exhibit 2
179
(c) Any work performed on the Leased Premises
materials furnished to said premises at 'the instance
request of Tenant or any person or entity acting for or behalf of Tenant; or
(d) Tenant's, failure to perform any provision of
this Lease or to comply with any applicable Governmental Restriction.
or
or
on
(e) Tenant's failure to insure that any percent-
age rents 'received by Tenant or its subtenants from. any 'licensees, concessionaires, or sublessees of the Leased Premises are structured. as necessary to insure that the character of such percentage rents•will .not result in the Rent' due' hereunder being. treated as unrelated business taxable income under -internal Revenue Code Section S12 and any regulations applicable thereto, or under any successor statute or regulations.
ARTICLE 12. CONDEMIATION
12.1 Definitions: Award: Taking: Taking Date: Total
Taking: Substantial Taking: Partial ?skint: Notice
of Intended Taking.
The term "Award" means the compensation paid for the
Taking, as hereinafter defined, whether by.judgment, agreement or otherwise.
The term "Taking" means the taking or -damaging of . the Leased Premises or any portion thereof as thi result of the exercise of the power of eminent domain, .or for any public or quasi -public use under any statute. Taking also includes a voluntary. transfer ':or conveyance to the condemning landlord or entity under threat 'of condemnation, in 'avoidance of an exercise of eminent domain, or while condemnation proceedings are pending.
The tern "Taking -Date" means the later of (i) the date on which the condemning. authority takes actual physical pos- session of the Leased ...Pravda** or any portion thereof, as the case may be, or.(ii) the date on which the right.to compensation and damages accrues under the law applicable to the Leased Prem- ises.
The term "Total Taking" means the taking of the fee
title to all the Leased Premises and the improvements thereon.
The ter* "Substantial Taking" .means the taking of so
much .of the Leased Premises or improvements thereon or both that the conduct of Tenant's business on the Leased Premises would be rendered economically infeasible.
OS80DOSO.OS1/003
-43- 091389-14
CMS 9043 1224
CONFIDENTIAL
Exhibit 2 180
The term "Partial Taking" means any Taking of the fee
title that is not either a Total or a Substantial Taking.
The term "Notice of Intended Taking" means an* notice
or notification on which a prudent person would rely as express- ing an existing intention of taking .as distinguished from a mire preliminary inquiry or proposal. It includes but is not limited to the service of a condemnation summons and complaint on a party to this Lease.
12.2 Total or Substantial Taking of Leased Premises.
In the, event of a Total Taking; except for a Taking for temporary use, Tenant's obligation to pay rent_shall terminate on, and Tenant's interest in the Lsased.Prenises shall terminate on, the Taking Date.
In the event of a' Taking, except for a Taking for
temporary use, which Tenant.considers to be a Substantial Taking, Tenant may, by notice to Landlord. given. within sixty (60) days after Tenant receives Notice of Intended Taking, notify Landlord of the Substantial..Takin6:•-- If 'Tenant doss. not so notify Land- lord, the Taking shall b. deceased a .Partial .Taking. If Tenant gives such notice and, within ten.(10).days._following Tenant's notice, Landlord gives Tenant notice disputing Tenants conten- tion that. there has been a'Substantial Taking, th..Parties shall resolve their dispute.before 'a court of.competent-jurisdiction or in _such other manner as the Parties: say mutually agree. If .
Landlord does not dispute Tsnant.'s contention that thers has been a Substantial Taking, or if it is detertained,•by order of the Court, that there has been a Substantial Taking., then the Taking shall be considered a Substantial Taking;. and Tenant shall be entitled to. terminate thii. Leas* :effective.ai of, the Taking Date if (i) Tenant delivers possession` of the' Leased Premises to Landlord within thirty (30) days after determination that the Taking was a Substantial .Taking, and (ii) Tenant was not in default on the Taking Date under this Lease and has complied with all Lease provisions concerning apportionment of_ths Award. If these conditions are not met, the Taking shall be treated as a Partial Taking.
12.3 Apportionment And Distribution of Award for Total
Taking and Substantial Taking.
In the event of a Total Taking or Substantial Taking.
all sums, including damages and intsrast, awarded for the fee or the'leaiehold or both shall be distributed according to the law in effect at the time of the Taking.
12.4 Partial Takinz: Abatement and Restoration.
If there is a Partial Taking of the Leased Premises.
except for a Taking for temporary use, the following shall apply. 05$0D030.031/003
-44- 091389-14
CMB 9043 1225
CONFIDENTIAL
Exhibit 2
181
This. Lease shall remain in full .force and effect on the portion of the Leased Preaie.es not Taken. Notwithstanding anything:in this lease which is or appears to be to the contrary, the portion of the ]tent payable under this Lease as Annual Minimum Rent shall be .reduced in -the same ratio that the. market value of the Ten- ant's interest in the Leased Premised .aa 'improved immediately prior to. the Taking .is , reduced by the Taking. The reduction in market value of the Leased Premises shall take into account and shall be determined subject to all subleases, licenses, and concession agreements then in. effect, and shall be determined upon completion of any repairs, modifications, or alterations to the Improvements on the Leased.Premises necessary to restore them to functional and useable condition following the Partial Taking.
The reduction in that portion of the Rent payable under .this Lease as Annual Percentage Rent shall be measured solely by 'the reduction, if any, in the revenues, receipts or other like measure, upon which said Annual -Percentage Rent is based.
Promptly after a Partial Taking,. at Tenant's expense
and in, the mariner specified in' the provisions of this Lease relating to construction, maintenance, repairs,.and alterations., .Tenant shall reconstruct, repair,. alter,,.ot *edify the improve- ments on the Leased Premises so. as to: lake they an operable whole. If Tenant does'not.repair, alter., aodify,.or reconstruct as required above, the cost ef_such repair shall"be deducted from Tenant's share, if any, of the Award and paid .to. Landlord. Any such constructioP, repairs, alterations or.modifications shall be undertaken -.and completed in compliance with all of the provisions of Section S.S. of this. Lease applicable. to Changes to the Improvements, including all provisions contained therein relating to consent of or approval by Landlord.
12.5 Apportionment and Distribution of Award For Par-
tial Taking.
On a Partial Taking, all sums, including damages and
interest, awarded for the fee title or the.leasehold or both, shall be.distributed and disbursed, first, to the cost of restor- ing the leasehold improvements, and thereafter in accordance with the law in effect at the time of the Taking.
12.6 Taking for Temporary Use.
If there is a Taking of the Leased Premises for tempo-
rary use, this Lease shall continue in full force and effect, Tenant shall continue to comply with Tenant's obligations under this Lease, neither.the'Tera nos the Rent shall be reduced or affected in any way, but Shall continue at'the level of the last annual rental (regardless of whether computed on s fixed or percentage basis) paid prior to the Taking (including any subse- quent increases in such annual rental provided for under this 0580D050.051/003
CMS 9043 1226
CONFIDENTIAL
-45- 091389-14
Exhibit 2
182
Lease), and Tenant shall be entitled to any Award for the use or estate taken.
ARTICLE 13. -*DEFAULT
13.•1 Events of Default.
The occurrence of. any one or more of the following
events shall constitute a default and breach of this Lease by Tenant or Landlord ("Default(s)" or "Event(s).of Default"):
(a) Any failure by Tenant to pay the Rent -e ke
any other payment. required to be made by Tenant hereunder, o -n EherEate the payment is due;
.(b) The abandonment or surrender of the Leased
Premises by Tenant;
(c) A failure by Tenant or Landlord to observe
and perform any -other provision.of this Lease to be observed or performed by Tenant or Landlord;
. (d) An event of _insolvency occurs, which event
shall be any of thafollowing: ._Tenant:shall make an assign- ment for. the benefit*of creditors; Tenant shall file or acquiesce in a petition'in any. court (whether or not pursu- ant to any statute of thl-United.States or of any state) in any —bankruptcy,. reorganization, composition. extension, arrangement or insolvency proceeding:; Tenant shall sake an application in any. such_ proceeding>i.:for., or acquiesce in,- the "appointment of. ' a trustee or receiver.. for. it of all or any portion of its property; any, petition shall be filed against Tenant to which_ it. doss not acquiesce in any court (whether or not pursuant to. any statute of the United States or 'any state): in any bankruptcy, reorganization, composi- tiori, extension, arrangement or. insolvency proceedings, and the. proceedings shall not, bi diiaissed, .discontinued or vacated within ninety (90) days; any proceeding pursuant to' the application, of any .parson other than Tenant to which Tenant does not acquiesce. in which a receiver or trustee shill.be appointed for Tenant or for all or any' portion of the .property of Tenant, and the receivership or trusteeship shall not be 'set aside within ninety (90) days after such appointment; or any.judgment, writ, warrant. .attachment or :execution or similar process .shall bit. issued or levied against s substantial. part_.of the property of Tenant and such judRssnt, writ or. similar process shall not be re- leased, vacated or fully,bonded-within.ninety (90) days of its issue or levy; provided, that if*it is determined that this Wise may be assumed by. the .Tenant.'s. trustee in bank- ruptcy notwithstanding the above provision-and:notwithstand- ing.Landlord's reliance, on Tenant's particular skill. exper- tise and character 'in entering this Lease, said trustee in 0380D050.051/003
-46- 091389-14
CMS 9043 1227
CONFIDENTIAL
Exhibit 2 183
bankruptcy may not assign.this i!,41114 unless (i) said pro- posed assignee has a. net worth at least equal to that of Tenant at the time of execution of this Lease, (ii) the business of the asluning third party is.consistent with the character and concept 'of the prescribed use of the Leased Premises, and (iii).all other provisions of 11 U.S.C. Sec- tion 365.(f)(2)(B).,, as well as other applicable bankruptcy .law_provisions for Landlord's benefit.and'protection, are satisfied.befcre my assignment of Tenant's rights or as. sumption of Tenant's obligations under this Lease. .This _paragraph shall not be'deemed to waive any of Landlord's rights under bankruptcy law or otherwise;
(e) A failure by Tenant to perform its obli-
gations under, or a failure"by Tenant to observe. Article 8 with respect to Transfer Ot thi Lease. or any interest there- in, or ear other Trans.fir prohibited therein; or if Tenant shall.suifer or permit any Of the foregoing, other than as specifically approved in -writing by Landlord;
(f) A default_ _by ' Taunt under the .provisions,/
any Encumbrance pace on a ased !remises pursuant -7i
.•
Article 7 hereof;
(g) A failure by Tenant to pay or discharge any
liens or claims of .liens or to provide a bond therefor in accordance with Section 5.4 hereof;
(h) A. failure by.Tenant.to perform its obliga-
tions under Section 5.2.4'hereof with respect to implementa- tion of certain mitigating measures;
(i) A failure by Tenant to puke any payment
required by this Lease to be made by Tenant with respect to the Agency's Loan*or the SaIis Tar Payment; and
(J) A default by Tenant under any of the provi-
sions of the DDA applicable to Tenant.
13.2 Notice of Default: Tenant's Right to Cure.
If Tenant is in Default under this Lease, as defined in Section 13.1, as a precondition to pursuing any remedy for an alleged Default by Tenant,. Landlord shall give notice of said Default ("Notice of Default".) to Tenant .and any Lender who has delivered a written request to Landlord for such notice and has registered its address with Landlord.
If the alleged Default is nonpayment of Rent, Impo-
sitions -or other .sued to . be paid by Tenant. as provided in this Lease, Tenant.shall have, fifteen (15) days after notice is given to cure the Default. For any other Default, Tenant shall, after notice, promptly and diligently comaence.curing the Default and 0580D030.051/003
-47- • 091389-14
CMS 9043 1228
CONFIDENTIAL
Exhibit 2 184
shall have thirty (30) days after notice is given to complete the cure of said Default; provided,, however, that if the nature of .said Default is ' such..that the same cannot reasonably be cured' within'said thirty -t30) day period.:Tinant shall hay. .such addi- '•tional tine. as ii nscess.ary. to .curs such Default, provided' Tenant is e*ercising reasonable• diligence in 'its efforts to cute the Default.
13.3 Landlord's Right to Cure Tenant's Defaults.
After expiration of the applicable time for curing a
particular Default, or before the -expiration of that time in the event of'an emergency, Landlord may, at Landlord's election, make any payment required of Tenant under this Lease or under any note or other document pertaining to the financing of improvements or fixtures' on tht .:Leased Premises;_: or *perform or comply with any covenant'or condition imposed, on Tenant under. .this Lease or any such note or document, and the amount so paid, plus the reasona- ble cost.of any such.performance or'compliance.,plus interest on such sum'at the Default- Rate,` from ,the date of payment, perfor- mance, or compliance until the date of repayment by Tenant, shall. be due: and' payable. by' Tenant"on the first—day. of. the next calen- dar month following any •such . payment. performance of compliance by Landlord "as. additional tent hereunder. No such -act shall constitute a waiver of any Default `or -of any remedy for Default or render Landlord liable for any lose or damage resulting from any such act.
13.4` Notice of Landlord's Default: Tenant Waiver.
If Landlord is in Default under this Lease, as defined
in Section 13.1, as.a precondition'to.pursuing any remedy for an alleged. Default by Landlotd,'Tenant shall deliver a Notice of Default 'to Landlord. Each. Notice .of Default shall specify the alleged Event of Default. Landlord'shall, after notice, promptly and diligently commence curing the Default and shall have thirty (30) days after notice is given to complete the cure of said Default; provided, however,. that if the nature of said Default is such that the'samn.cannot reasonably be cured within said thirty (30) day period, Landlord shall. have suchtime'as is necessary to complete the cure of laid Default, provided Landlord is exercis- ing reasonable diligence in its efforts to cure the Default.
Tenant hereby waives the protections. of 'California Civil Code Sections 1932 and 1933, or any other successor statute containing like protections.
Notwithstanding any assignment of the original Land-
. lord'srig .. hts under this Lease to any.other entity, in the event 'of.a Default bysuch other entity under. this Lease.. Tenant shall deliver a. Notice of Default to . the original Landlord concerning said Default, and the original Landlord shall have the right to cure said Default so long -as it undertakes and completes said cure prior to expiration of the'applicable cure period. 0580D050.051/003
CMS 9043 1229
CONFIDENTIAL
-48- 091389-14
Exhibit 2
185
13.5 Landlord's Remedies.
13.5.1. Right to Terminate.
Zf any : Default'. by' Tenant shall 'continue uncured, fbl•- lowing Notice.of Default as. required by this Lease. .for the cure period applicable to that. Default under the provisions of this Lease ("Uncured Default"), then -in. addition to any -other remedies available to Landlord at'law or in equity, and subject to the rights. of a Lender expressly see '..forth' in this Lease, Landlord shill have the immediate option -to terminate this' Lease and all rights of Tenant hereunder :by living written notice of such termination. In the event that Landlord'shall to elect to termi- nate this Lease then sndlord may`recovir from Tenant:
(a) The worth at the time of award. of any unpaid
Rent which had been earned'at.the-tier of such termination; plus
(b) The worth at the time of .award of the amount
by which'the unpaid Rent which' would hava..beenearned after termination until the` ties -of. award ixeetds .the amount of such rental loss that Tenant .prove Could have been reason- ably avoided; plus
(c) The worth at .the time of award of the amount
by which the unpaid. pent for the balance.of the Term after the timp of award exceeds 'the ;imoutst ..of such rental loss that Tenant proves could be reasonablj avoided; plus
(d) Any other amount. necessary to .compensate
Landlord for all the detriment. proximately caused by Ten- ant.'s failure to perform its obligations under this Lease -or which in thi 'ordinary 'course of things would be likely to result therefrom; and
. (e) At Landlord's ,alection,.such.other amounts in
addition to or in lieu of the foregoing as may be permitted from time to:time by applicable California law.
As used in subsections (a) and (b) above, the "worth at the time of award is computed 'by allowing 'interest at the Default Rata. As used in subparagraph (c) 'above, the.,"worth at the time of award" is, computed by, discounting such amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of award plus one percent (1%).
13.5.2. Right to Reenter.
Subject to Tenant's and its Lender's right to cure
Tenant's Default under this. •Le•as•e pursuant to Section 13, in the ••
event of such.. a Default by Tenant, Landlord shall also have the right, with or without terminating this Lease, to reenter the 0580D030.051/003
-49- 091389-14
CMS 9043 1230
CONFIDENTIAL
Exhibit 2 186
Leased Premises and remove all persons and property therefrom by summary proceedings or .otherwise. Such property on the Leased Piemises. sty be remove and stored .in a public warehouse'• or elsewhere at.the cost of:And for the account of Tenant. Notwith- standing any *provis.ion of..this :Lease which. may be or appears .to be to"the Contrary, in. the event of any such Uncured Default Landlord may also_ elect to. retain all of Tenant's fixtures, furniture, equipment, improvements., additions;. alterations, and any -Other personal property ("fixtures, furniture and equipment") on the Leased Premises and, in that event., end continuing during the length of said Uncured Default.. Landlord shall have the. right to take the exclusive possession ..of. same .and to use same, rent free and. without. charge ,therefor. The.election.,of one remedy for any oni item of 'property should not foreclose an election of any other remedy for another item or for the same item at a later time.
13.5.3. Riftht to Relet on Tenant's Account.
In the event of abandonment of the Leased Premises by
.Tenant, or in the event . that. Landlord'shall elect to reenter - as provided in Section 13.5.:2 above.: without :exercising its option to . terminate the Lease, then. Landlord may, pursuant to Section 1951.4 -of the: Civil. Code -of the State of California, either recover`all rental as it'becomes due..(the Annual Percentage Rent for the year or years after:the Leased Premiaei,are abandoned or vacated by Tenant shall he equal..each year.to.the Annual Percent- .age.Regt patd.for the last year prior to -the vacation or abandon went of the Leased Premises. by Tenant) of relet.for Tenant's account the Leased 'Premises or :any part thereof for such term or terms and at..such rentil•or rentals and upon such other terms and conditions as Landlord in_its sole discretion may deem advisable and, in- connection therewith-,. Landlord shall have the right to make alterations and repairs to the Leased Premises.
In the event .that Landlord shall so elect to relet,
then rentals received by Landlord from such reletting shall be *applied: first, to the paylept of any indebtedness, other than Rent due hereunder, owed by Tenant to Landlord; second, to the payment of the cost of such reletting; third, to the payment of the cost of repairs to the Leased Premises made by Landlord; fourth, to the payment of Rant due and unpaid hereunder; and the residue, if any, shall be held by Landlord and applied in payment of future Rent as the same :may become due and payable hereunder.
Should that portion of such .rentals received from such reletting during any month which, ii applied to the - payment of Rant hereun- der be less than the'Rint payable. during that month by Tenant hereunder, than Tenant shall pay such deficiency to Landlord.
Such deficiency .shall be calculated and .paid monthly. Tenant shall also. pay . to Landlord, as soon as: ascertained, any costs and expenses incurred by Landlord in such relettin% or in making such alterations and repairs not covered by the rentals received from such reletting.
0380D050.051/003
-50- 091389-14
CMS 9043 1231
• CONFIDENTIAL
Exhibit 2 187
13.5.4. Effect of Reentry.
No re ntr7 or taking possession of the Leased Premises
by Landlord pursuant to this Section 13.S shall be construed as an election to terminate this Lease unless a written notice of such intention be given to Tenant by Landlord or unless the termination thereof be decreed by a court- of competent jurisdic- tion. Landlord may at any time after' such reletting elect to terminate this Lease for any Default by Tenant, and may thereaf- ter pursue any and all remedies available. to Landlord upon such termination.
13.6 Remedies Cumulative.
Each .right and remedy of Landlord and Tenant provided
for in this Lease shall be cumulative.and shall'b. in addition to every other right or remedy.provided for in this Lease or now or hereafter existing at law. or in equity or by statute or other- _ wise, and the exercise. or the beginning.of the exercise by Land- lord or.. Tenant of any one or more of..the rights or remedies provided for in'this Lease or now'or hereafter existing at law or in equity' or.•by statute :Or otherwise shall not preclude the simultaneous or later .exercise by, Landlord or Tenant of any or all other rights or remedies.provided_for in this Lease or now or hereafter existing at law or in.equity-or by -statute or other- wise.
13.7 No Waiver.
Landlord's or Tenant.' failure to enforce any provision of this tease with respect to a .Default hereunder shall not constitute a waiver of Landlord's or. Tenant's right to enforce such provision or any other provision with' respect to any future Default.. The acceptance Of Rent_by Landlord- shall not be deemed a -waiver of Landlord's right-to'enforce any term or provision hereof including the right to collect a late charge. The waiver of any term or 'condition of this Lease must be in writing and shall not be deemed to bi a waiver of any ether term or condition hereof or of any subsequent failure' of any teas or condition hereof. Landlord's failure to require or collect the late charge in any. one or more instances shall not constitute a waiver of the right to collect any subsequent late charge or charges. .13.8 Delays in Performance.
The time within which the Parties hereto shall be
required to perform any act under this Lease, other than the payment of Rent and:Impositions,, shelI'be extended .by a period of time equal to the number of days during which performance of such act is .delayed due to an act - o:f Cod., supernatural causes, strikes, lockouts, earthquake, flood, explosion, war, invasion, insurrection, riot, mob violence, -eats of the public enemy, epidemics, quarantine restrictions, freight embargoes, unusually •0580D050.051/003
CMS 9043 1232
CONFIDENTIAL
-51- 091389-14
Exhibit 2
188
•
•
severe weather, acts of another party in violation of this Agreement; or similar sventl which would constitute an excuse for performance under. the doctrines of frustration of purpose or Impassibility of perfo•rmance.. • The. additional grace period or 'extensian.of tiia.provided above shall be equal to the period of delay caused by, the above -described event, which period shall commence to run from the time. of the commencement of the cause for'dslay and shall terminate upon termination of that cause. A.
Party wishing'.to invoke thii Section shall notify ,in writing the other Party. to this Agreement .-of. that intention within thirty (30) days of the commencement of 'any such cause for delay and shall,: at that tile, specify the reasons therefor. The failure to so notify the other Party.within that period_ as to the cause for delay_ .shall constitute a waiver of any right to later rely upo4 this. Section.with respect to that cause. In no avant shall any.extension of. time provided to Tenant pursuant' to this Section extend the deadline_ for comlencsment of construction of the Shapping Center by a cumulative total of more than twelve (12) months without Agency's consent,: after which time this Agreement shall be subject to termination by Agency.: In the event of such termination and. provided .that Developer is not ,then in Default hereundsz, the Developer's Fit shall be.returned to Developer and.:
the Pasties shall'have no further liability to each other under this Agreement.
ARTICLE 14. EXPIRATION; TERMINATION
14.1 _Tenant's Duty To Surrender.
At the expiration or..sarlisr termination of this Lease, .Tenant shall surrender to Landlord the 'possession. of the Leased Premises free and clear of all liens and Encumbrances other than those, if any, created by Landlord. Surrender or removal of improvements, fixtures and tied* fixtures shall be as directed•in the provisions of this Lease on ownership of improvements at termination or expiration of the Term: Tenant shall leave the Leased Premises and any other property surrendered in good condition and repair; A11 property that Tenant is' required to _surrender. shall. bsca.e Landlord's property .at termination or expiration 'of this .Lease. A11 .property that Tenant is not required. to surrender but thst.Tenant does abandon by failure to remove said property within thirty (30) days after the expiration or eaclier termination of this Lease shall, at Landlord's election; become Landlord's property.
Subject to the rights, if any,,of.a subtenant under a
nondisturbance asreelent approved by Landlord in. accordance with Section 8.2.3; at the expiration or.earli r termination of this Lease, Landlord shall have the right to demand the removal from .the Leased -Premises of all:improvements or. of 'certain specified improvements thereon..at Tenant's sole cost and expense. A demand for the removal of 'said improvement(s). shall be made by notice given within six (6) months before the expiration, or at the time 0580D050.031/003
•S2- 091389-14
CMS 9043 1233
CONFIDENTIAL
Exhibit 2' 189
of the earlier termination, of this Lease. Tenant shall.comply with said notice prior to expiration' of this Lease, or, in the event of earlier termination, not later than ninety (90) days after such earlier termination of this Lease. The duty imposed by.thia provi.iion includes, but is not limited to, the duty to demolish and remove all buildings in compliance with applicable demolition permits.
If Tenant fails to surrender the Leased Premises at the expiration or sooner termination of this :Lease in .the condition required by this Lease, Tenant shall indemnify, 'defend and hold Landlord, City and their' Representatives; and the property of Landlord 'and: City, harmless from all•Losses and Liabilities resulting from the delay .br failure to juirrendar. including, .without limitation, claims made by any succe.ding tenant founded On or'resulting from Tenant's failure to surrender.
If requested to do so. Tenant shall, upon the
expiration or earlier termination of thin Lease, execute, acknowledge and deliver to Landlord and/.or City:such instruments of further assurance as in the opinion of: Landlord and/or City ari necessary at deairata4 . to canfirs< "or. perfect Landlord's right, title and interest in and to the.Liased'preliser. and any other property surrendered to'Landlord-pursuant'to this Lease, free and clear of any claim by Tenant.
ARTICLE 13. TENANT'S REPRESENTATIONS AND WARRANTIES.
15:1 Tenant's Representations and Warranties
Tenant covenants, represents and warrants to Landlord,
as of the date of execution of this Lease,. as follows:
(a) Tenant. is a California general partnership,.
duly organized, qualified -And validly existing and in good standing- under the laws.. of California and each other jurisdiction where the operation of its.busineas or its .ownership of property makes such qualification necessary, and has all' requisite poWar and authority to own and operate its properties- and to carry on its businessr as now and Whenever_ conducted and to enter into and perform its
obligations under this Lease; .
(b) The execution, delivery and performance of
this Lease.ia consistent, with 'Tenant's general partnership agreement. and has been duly .authorized by all necessary action of Tenant's partners. A1,1 co..nsents, approvals and authorizations of -all applicable governmental authorities (including, without limitation; ,all. consents or approvals, if any. required under applicable securities laws), and all consents or approvals of Tenant's partners required in
connection with the execution. delivery and performance by 05800050.051/003
-33= '091389-14
CMS 9043 1234
CONFIDENTIAL
Exhibit 2
190
Tenant of this Lease have been obtained and delivered to the Landlord on or before the Effective Date of this Lease;• (c) Tenant has duly obtained and maintained, .and •
will continue to obtain.and maintain.•.a11 material licenses, permits, consents aiid approvals .required by all applicable governmental authorities to own and'operate its respective businesses and properties as now owned and hereafter owned. (d) With respect to the financial condition of
Tenant:
(1) Tenant .has. furnished Landlord and will,
upon request. by Landlord,'furniah Landlord with true
and correct copies .of its. balance Sheets and the
related Statements of Income (Loss), and Statements of
Change's in Financial Position (collectively, the
"Financial Statements");
• (2) .The Financial .Statements have been and
will .be preparid .in accordance. vit$ generally accepted accounting principlea consistently applied .throughout
the .periods indics d.. ' the' . Balance Sheets fairly
present financ te
ial conditions as ofthe date indicated,
and the Statements of .Income:. (Loss)_ and Statements of Changes in Financial Condition, fairly present, in
'accordance with:_such accounting principles, the results of ' operations, the' application' of funds, and the
changes in shareholders equity for the respective.
periods indicated;
(3) There have been no changes in the
assets, liabilities, financial condition or affairs of
Tenant set forth '-or' reflected' in the most recent
•
Financial Statements supplied to Landlord, which either in any one ease or in. the aggregate,' would materially or adversely affect Tenant's ability to perform its
obligations hereunder; and
(4) The charges, accruals and. reserves in
the books of Tenant, if any, since inception of Tenant
to the date hereof are adequate in accordance with
generally accepted accounting principles to reflect any changes in the financial condition of Tenant since its
inception;
(e) A11 filings, reports and tax returns of
Tenant which are required to be made or filed with any
.governmental authority have been and will continue to be duly made. and filed, and all taxes, assessments, fees and other governmental charges upon Tenant, or upon any of its respective properties, assets, inco5S or. franchises, which are due and' payable, have been, and will continue to be, 0S80D0S0.051/003
CMB 9043 1235
CONFIDENTIAL
-54- 091389-14
Exhibit 2 191
paid when due, other than those which are presently payable without penalty or interest, or which Tenant is contesting in good faith;
•
(f) Theis are not suits, ..other proceedings .or
investigations pending or threatened'against, or affecting the�.buiiness or the properties of Tenant, other than as previously dii.closed .to..Landlord, which would materially impair Tenant's ability to pe.rfora under this Lease nor is .Tenant nor any of Tenant's general partners in violation of any laws or ordinances;"
(g) There are no facts now in existence which
would,'with the giving of notice or the' lapse of time, or both, 'constitute. an "Event of Default" hereunder;
(h) Tenant has not received any notice from any
governing Jurisdiction. of any 'violation of laws or
ordinances, nor any notice.. requiring any improvements or alterations to be madmen connection with the.Improvements to be constructed on the Leased Premises;
(i) Tenant does not. know or have any reason to
know of any adverse conditions, .circumstances,. or pending or threatened litigation, governmental action,.'or other condi- tion which could 'prevent" or . -Materially ippair Tenant's ability to develop the Leased Premises'as contemplated by the terms of.this Lease; and
(J) This Lease and all .other..instruments to be
executed in connection herewith will, as of the date of their execution, have been duly and validly. executed by Tenant, and each such document' constitutes, or will, as of the data executed, constitute; a legally valid, binding and fully enforceable obligation of the --Parties thereto, in accordance with each and every term and condition stated therein.
ARTICLE 16. MISCELLANEOUS
16.1 Estoppel Certificate.
Within. ten (.10) days after request by Landlord or
Tenant. (which request may be from time to time as often as reasonably required -by Landlord or Tenant) Landlord or Tenant shall execute and deliver to the other, without. charge, a statement 'in: the .fora of Exhibit E, attached hereto; or in such "other similar ford `as Landlord or: Tenant may be reasonably request. Any such statement may. bi conclusively relied upon by any prospective purchases or -encumbrancer of .the Leased Premises:
Tenant's or Landlord's failure to deliver such statement within tan (10) days of a written request therefor shall be a binding agreement 'of Tenant or Landlord (i) that this Lease is in full 05800050.051/003
-SS- 091389-14
CMS 9043 1236
CONFIDENTIAL
Exhibit 2
192
force and effect without codification except as may be
represented by the Party requesting said statement, (ii) that there are no Uncured Defaults in the requesting. Party's performance *hereunder, and (iii) that there have .not been any payments of advance Rent other than as.provided in the provisions of this Lease.
16.2 Notices.
Any notice provided for herein shall be given by
(i) personal._ service, (ii):Federal Express, Express Mail, or another like courier service, or -(iii) registered or certified first class United States Mail, postage prepaid, returned receipt requested, addressed as follows:
If to Landlord:
Bell Gardens Redevelopment Agency
7100 S. Garfield `Avenue
Bell Gardens, California 90201
Attn: Executive Director
With a copy to: Brown. Winfield & Cansoneri, Inc.
300 South Grand Avenue, Suite 1300
Los Angel.s,.California 90071-3125
Attn: Dennis Roy, Esq.
If to City: • City of Ball Gardens
7100 S. Garfield Avenue
Bell Gardens, California 90201
Attn: City Manager
With a copy to: Brown, Winfield & Canzoneri, Inc.
300 South Grand Avenue, Suite 1500
Los 'Angeles, California .90071-3125
Attn: Dennis Roy, Esq.
and, If to Tenant: BELL GARDENS ASSOCIATES,
a California general partnership
#13 Corporate Plass, Suite 200
Newport Beach, California 92660
Attn: Fred Stesseler, Esq.
Any such notices shall be deemed received upon the earlier of (i) actual receipt or (ii) twenty-four (24) hours after being depositedwith the courier service or the United States mail as provided above. The person and the place to which notices are to be mailed may be changed by either party by notice to the other.
16.3 Attorneys' Fees.
'In the event that either Party brings any action or
files any proceeding in connection with the enforcement of its respective rights under this Lease or as .a consequence of any breach by the other Party of its obligations under this Lease, 0380D050.031/003
-56- 091389-14
CMB 9043 1237
CONFIDENTIAL
Exhibit 2
193
the .prevailing Party in such action or proceeding shall be entitled to have. its reasonable attorneys' fees and out-of-pocket expenditures paid by the losing Party.
16.4 Headings.
The headings used in this Lease are inserted for
reference purposes only and do not affect the interpretation of the terms and conditions hereof.
16.5 Rights of Successors.
All.of the rights and obligations of the Parties under
this Lease shall bind and inure. to the benefit of their respective heirs, successors and assigns; provided, however, that nothing in. this Section 16.5 shall be- construed or understood to limit'the provisions concerning restrictions' on Transfer set forth in Article 8 hereof.
16.6 Amendments in Writing.
This Lease cannot be orally amended or modified. Any
modification Or amendment hereof must be in writing and signed by the Party to be charged.
16.7 Time of Essence.
Time is of the essence of each provision in this Lease.
16.8 Interpretation.
When the context and construction so require, ell words used in the singular herein shall be -deemed to hive been used in 'the plural, and the Masculine Shall include:.the feminine and neuter and vice versa. The term p.rson.as used in -this Agreement means a natural person, corporation, association, partnership, organization,' business, trust, individual, or a governmental authority, agency, instrumentality or political subdivision, and whenever the word."day" or "days`' is used herein, such shall refer .to calendar day. or days; unlesi otherwise specifically provided herein. Whenever a reference is made herein to a particular Section of this Agreement, it shall mean and include all subsections and subparts thereof.
16.9 Avolicable Law: Severability.
The interpretation and enforcement of this Lease shall
be governed by the laws of ,the State of California. Should any part; term, portion. or provision of - this, Leal., or the applica- tion thereof to any person or circumstances be held -to be illegal or in conflict -with any Governmental. Restrictions, or otherwise be rendered unenforceable or ineffectual, the validity of the remaining parts, terms, portions or provisions, or the
05800050.051/003'
CMB 9043 1238
CONFIDENTIAL
-S7- 091389-14
Exhibit 2
194
application thereof to other persona or circumstances, shall be deemed severable and the same shall remain enforceable and valid to the fullest extent permitted by law.
16.10 Exhibits.
A11 exhibits referred to in this Lease are attached
hereto and incorporated herein by reference.
16.11 Waiver of Subrottation.
Landlord, City, and Tenant hereby release the other 'and their Representatives from anyand all liability_or responsibil- ity to the other or anyone claiming through or under then by way of subrogation or otherwise for any Losses and Liabilities with respect to which.insuranca coverage is actually provided, even if such Losses and Liabilities shall have been.causedby the fault or negligence of the other Party, or anyone for whom such Party may be responsible.
16.12 Attornment by Tenant.
In the event that -.Landlord assigns its, interest in the Leased Premises or the Lease. Tenet* shall attorn to the assignee of Landlord, and shall recognize sane as Landlord under this Lease.
16.13 Short Form of Lease.
Concurrently with -the execution of this Lease, the
Parties shall execute and theisafter; record with. the County Recorder of Los Angeles County. a short for lease giving notice of the existence of this Lease acid the term hereof.
16.14 Landlord's Rights of Inspection.
Landlord and its authorized.agents and representatives
shall have the right. at any time arid, frosi time to time to enter upon the'Leased Premises for purposes of (1) inspecting the same, (ii).making any necessary repairs thereto pursuant. to this Lease or taking -such . other -act-ions as may - be, authorized by the provi- sioni hereof, or -(iii) posting notices of non -responsibility in accordance with its rights under this Lease. If Landlord, in itt reasonable discretion,, determines that any work,or materials are not in conformity with any Plans approved pursuant to this Lease, any applicable Governmental Restrictions, or any -other provisions of this Lease, Landlord say stop thi work and order.correction of any such work or Materials.._ Inspection b-y:.Landlord of.the Leased Premises or any.: improvems .:s thereon. is for the :sole purpose of protecting the rights of :andlord ' and is not to be construed as an acknowledgment, acceptance or. representation by Landlord that there has been compliance with any Plans, or the DDA, or that the Leased Premises or any:* improvements thereon' will be free of 0580D050.051/003
-58- 091389-I4
CHB 9043 1239
CONFIDENTIAL
Exhibit 2
195
'faulty.aaterials or workmanship. Any holder of any encumbrance 'on any portion of the. Leased /restipet shall make or cause to be made such other. independent inspections 'as permitted by this Lease and .at it deans necessary for its own protection, and nothing contained herein shall be construed as.requirins•Landlord to construct or supervl.ii construction of any improvements on the • Leased Premises or any portion thereof.
16.15 Nonmerier of Fee and Leasehold tstates.
If both Landlord's and Tenant's estates in the Leased
Premises become .vested in the same owner other than by termination •of this Lease by .Landlord, this Lease shall not be .terminated by application.of the.doctrine of merger except at the express election_ of the owner and with the consent of any Lend- sr(s) on a Leasehold Mortgage.
16.16 Nonliabilitl of Landlord and City Representatives.
Neither the City nor any Landlord or City
Representatives shall be.porsanally. liable to Tenant, or any successor in'interest, in the. ventof any default or breach by the Landlord, or for , aeiy. am► unt which may 'become, due to the Tenant"0r successor, or on any obligation under the terms of this Lease.
16.17 Counterparts.
This Lease may be executed is any number of coun-
terparts,. each of which shall be deemed an original, and all of which shall constitute one "and -the same'instrument.
16.18 Authority.
Each person executing this Agreement on behalf of
Tenant and Landlord hereby represents and warrants (i) his authority to do so on behalf of that Party, (ii) that such authority has been duly and validly conferred by Tenant's partners or Landlord's. officers, and (iii) that Tenant or Landlord, is appropriate, has'full right and authority to enter into this Lease.
16.19 Option to Purchase.
Subject to the following terms and conditions, Landlord grants to Tenant the option to purchase ("Option to Purchase") the fee title to the Leased Premises. .The Option to Purchase may only be exercised if the.Tenant'is not _then in Default of any of its obligations hereunder and if this Leese is in full force and effect. Tenant shall have the .right to exercise the Option to Purchase" at any time during the first six months of the Fifteenth (15th) Lease Year of the original Tara (the "Option Period"). 05800050.051/003
-59-, 091389-14
CMS 9043 1240
CONFIDENTIAL
Exhibit 2 196
Tenant shall exercise the Option by giving written notice ("Option Notice") to Landlord within the Option Period. • Landlord and Tenant shall .have thirty (30) days after Landlord: receives •the Option Notice in which to agree on'the purchase price. for .the.. Leased . Premises•• '("Purchase •Price"). If the Parties ar• •unable_ .to agree on' the. Purchase . Pri•ce within the above thirty (30).day period, then within twenty -(20) days after the expiration .of that period each Party.,. at its respective cost and by giving notice to the other party, shall appoint a qualified real estate appraiser with at least ten (10) years' full-time commercial appraisal experience in the Los Angeles area to .appraise and set ..the Purchase Price. If • Party does not appoint an appraiser within twenty .(20). days after the other party has given notice of the name of its appraiser, the single .appraiser,.appointed shall be the sole appraiser and shall set the Purchase Price. If the. two apprsi;ers are. appointed by the Parties as . stated in this S.ttion, .they. .shall meat promptly and attempt to set the Purchase Pride. It they are unable to agree on the. Purchase Price within thirty (30) days after the second appraiser has1been appointed,_they shall attempt to elect a third appraiser meeting the qualifications., stated io - this Section within ten (10) days after the list day the two .appraisers are - given to sat . the Purchase Pride. ' If they are .unable. to agree on the third .appraiser, either. of the Parties..to' this Lease by giving ten (10) days' notice to the..other Party can apply to the superior court.of Los Angeles County,.. for the selection of a `third appraiser .who meets .the. qualifications. :stated in this Section'... Each Of. the Parties shall bier ' one hall of .the cost of appointing ehe third appraiser and'. of. Paying the third appraisers fee. The third appraiser, however selected, shall be •a -person who has not previously.acted in any capacity for either party.
Within thirty (30) days after the selection of the
third appraiser, the apprsisers.shall complete their appraisal of the fair market value of .Leased Premises and a majority of the appraisers shall. set the Purchase Price. If. a majority of the appraisers are unable to set the .Purchase .Price within the 'stipulated. period' of time, the three appraisals shall be added together and their total divided by three;- the. resulting quotient shall be the Purchase Price; provided that, if the low appraisal and/or the high appraisal are/is More than fifteen percent (1SI) lower and/or higher than the middle appraisal, the low appraisal and/or. the high appraisal shall be disregarded. If only one appraisal is disregarded, the remaining two appraisals shall be added together and their total divided by two; the resulting 'quotient shall bi the Purchase Price. If'both. the low appraisal 'and the high appraisal are disregarded as stated in this Section, the middle appraisal shall be the Purchase Price.
In appraising the Leased Premises as provided in this
Section, the appraisers shall not take into consideration the 05800050.051/003
CMB 9043 1241
CONFIDENTIAL
-60_ 091389-14
Exhibit 2
197
•
BY: G. .0 , ...I, C_____
/J D. Hopkins/,
..,4ice President •
By: MATTSHAN•CORPORATION
.a California corporation
General Partner
John D. Hopkini President
LANDLORD:
BELL GARDENS REDEVELOPMENT AGENCY
By:
Claude L. Booker
Executive Director
ATTEST:
1 '_ /✓ L ) 1
APPROVED AS TO FORM:
BROWN, WINFIELD & CANZONERI, INC.
Landlord Attorney
/`
is S. JEsq.
0580D050.051/003
CMB 9043 1244
CONFIDENTIAL
-63- 091389-14
Exhibit 2 198
LESSOR CONSENT AND ESTOPPEL CERTIFICATE
(Bell Gardens Marketplace)
THIS LESSOR CONSENT AND ESTOPPEL CERTIFICATE (this "Consent and Estoppel") is made as of June 15 , 2017 {the "Effective Date"), by the CITY OF BELL GARDENS, a municipal corporation ("Ground Lessor"), to and for the benefit of FEDERAL REALTY INVESTMENT TRUST, a Maryland real estate investment trust ("Assignee"), and PRIME/CRDF BELL GARDENS, LLC, a Delaware limited liability company ("Current Lessee").
RECITALS
A. Ground Lessor is the owner of that certain real property described in Exhibit A attached hereto, together with all easements appurtenant thereto, and commonly known as the Bell Gardens Shopping Center (the "Site").
B. Ground Lessor's predecessor in interest (i.e. The Bell Gardens Redevelopment Agency) and Bell Gardens Associates, a California general partnership ("Associates"), entered into that certain Ground Lease dated as of September 1, 1989, pursuant to which Associates leased the Site from Ground Lessor's predecessor in interest (as amended as described on Exhibit B attached hereto, the "Ground Lease").
C. Ground Lessor' s predecessor in interest and Associates entered into that certain Disposition and Development Agreement dated as of May 23, 1988, as amended by that certain First Amendment to Bell Gardens Shopping Center Ground Lease and Disposition and Development Agreement dated as of March 20, 1992 by and between The Bell Gardens Redevelopment Agency and Associates (collectively, the "DDA"), pursuant to which Associates developed the Site with a shopping center.
D. On August 20, 1991, the Ground Lessor' s predecessor in interest transferred all of its rights and interest in the Site to the City of Bell Gardens as partial repayment of loans made by the City's General Fund to the Ground Lessor's predecessor in interest used for land acquisitions and other redevelopment related activities.
E. As of the Effective Date, Current Lessee is the tenant under the Ground Lease pursuant to that certain Assignment of Ground Lease by and between Florence Eastern Marketplace, LLC (the "2012 Assignor"), as assignor, and Current Lessee, as assignee, dated as of January 15, 2013 (the "2013 Assignment"), and recorded in the Official Records of Los Angeles County, California (the "Official Records") on January 16, 2013 as Document No. 20130078498.
F. The Ground Lessor consented to the assignment of the Ground Lease by 2012 Assignor to Prime/CRDF Florence Eastern Marketplace, LLC pursuant to the Lessor Consent and Estoppel Certificate (Bell Gardens Marketplace) dated as of November 27, 2012 (the "2012 Lessor Consent"). After the date of the 2012 Lessor Consent but before the 2013 8943904.3
Exhibit 2 199
Assignment was executed and recorded, Prime/CRDF Florence Eastern Marketplace, LLC changed its name to Prirne/CRDF Bell Gardens, LLC.
G. The sole member of the Current Lessee is Primestor/CRDF, LLC, a Delaware limited liability company (the "Primestor/CRDF"). The sole members of Primestor/CRDF are Community Retail Development Fund, LLC, a Delaware limited liability company ("Assignor") and Primestor Pathfinder, L.P., a California limited partnership. Assignor has agreed to sell, transfer and assign to Assignee, and Assignee has agreed to purchase, accept, and assume, all of Assignor's right, title and interest in and to Assignor's interests as a member of Primestor/CRDF (the "Transfer"). Simultaneously with the closing of the Transfer, the name of the Current Lessee will be changed to Prime/FRIT Bell Gardens, LLC (the "Name Change").
H. Ground Lessor has agreed to consent to such Transfer and Name Change and to ratify and confirm the 2012 Lessor Consent as set forth below.
NOW THEREFORE, Ground Lessor hereby states, certifies, confirms, acknowledges, represents, warrants and agrees as follows:
1. Consent. Ground Lessor hereby consents to the Transfer and Name Change referenced above.
2. 2012 Lessor Consent. Notwithstanding anything to the contrary in the 2012 Lessor Consent, Ground Lessor hereby ratifies and confirms its consent to the assignment of 2012 Assignor's right, title and interest in the Ground Lease to the Current Lessee and the corresponding acceptance thereof and assumption by the Current Lessee of 2012 Assignor's obligations, terms, covenants, conditions and agreements made under the Ground Lease.
3. No Waiver. Ground Lessor's consent to the Transfer set forth herein shall not be construed as a waiver of Ground Lessor's right to reasonably refuse consent to any future proposed transfer nor as a waiver of any other rights which Ground Lessor has under the terms of the Ground Lease upon the occurrence of any proposed or purported future transfer subject to Ground Lessor's consent pursuant to the terms of the Ground Lease.
4. Validity of Ground Lease. The Ground Lease is valid and in full force and effect, in accordance with its terms. The Ground Lease has not been surrendered, canceled, terminated or abandoned, whether in writing or pursuant to a purported oral surrender, cancellation, termination or abandonment.
5. Lease Amendment. The Ground Lease has not been supplemented, modified or amended (orally or in writing) other than as disclosed in Exhibit B attached hereto.
6. No Assignment of Lease by Ground Lessor. Ground Lessor is presently the "Landlord" under the Ground Lease and has not assigned its fee estate or any right, title or interest therein. Ground Lessor recognizes Current Lessee as the "Tenant" under the Ground Lease, and Ground Lessor has not received notice of any assignment of the Ground Lease by Current Lessee. 2 8943904.3
Exhibit 2 200
7. No Termination, Ground Lessor has not commenced any pending action or sent any presently effective notices to Current Lessee (or received any presently effective notices from Current Lessee) for the purpose of terminating the Ground Lease. Ground Lessor is not presently entitled to terminate the Ground Lease.
8. No Defaults. Ground Lessor has not given any notice of default of Current Lessee, other than as to any default(s) that have been cured. Ground Lessor is not presently aware of any fact or circumstance that, with the passage of time or the giving of notice, or both, would constitute a default under the Ground Lease. Current Lessee has no offsets, counterclaims, defenses, deductions or credits whatsoever with respect to the Ground Lease, or any amounts owing under any other agreement.
9. Rent. All rent and other current charges, if any, have been paid under the Ground Lease through and including the rent payable for each rent payment period that includes the Effective Date. As of the Effective Date, no rent or any other payments are presently due under the Ground Lease. The Annual Minimum Rent as of the date hereof through March 31, 2018 is S 1,510,685.09
10. Term. The primary term of the Ground Lease expires August 31, 2023; the Ground Lease provides seven (7) options to extend such term for additional periods of ten (10) years each which shall remain available to the "Tenant" under the Ground Lease and no days of Default have been accumulated by the "Tenant" under the Ground Lease pursuant to Section 2.2 of the Ground Lease.
11. DDA. The DDA was not modified or amended except as set forth above and the DDA is no longer operative and all references in the Ground Lease to the DDA shall be null and void and of no force or effect.
12. Easements. All easements now in effect comply with Section 4.2 of the Ground Lease and the "Tenant" under the Ground Lease has no obligation to grant easements pursuant to Section 16.21 of the Ground Lease.
13. Agency's Loan. The Agency's Loan has been paid in full and cancelled and the "Tenant" under the Ground Lease has no obligation to make the Sales Tax Payment pursuant to Section 16.22 of the Ground Lease.
14. Assignee Improvement Obligations. Reference is hereby made to the "Assignee's Improvements", as that term is defined in Section 13 of that certain Lessor Consent and Estoppel Certificate dated as of September 25, 2006 by the Bell Gardens Community Development Commission to and for the benefit of Florence Eastern Marketplace LLC (the "2006 Lessor Consent"). The undersigned hereby certifies that the "Assignee's Improvements" and any and all other obligations set forth in Section 13 of the 2006 Lessor Consent have been satisfactorily performed and completed in full compliance with the terms and conditions set forth therein. There are no sums which the undersigned is entitled to receive or demand under the 2006 Lessor Consent that remain unpaid. None of the Current Lessee, Assignor, or the "Tenant" under the Ground 3 8943904.3
Exhibit 2 201
Lease have any outstanding, ongoing or future obligations with respect thereto and the terms of Section 13 of the 2006 Lessor Consent are hereby null and void and of no further force or effect.
15. Guarantor. Notwithstanding anything to the contrary in the Ground Lease, including, without limitation, Section 16.20 thereof, there is currently no Guarantor under the Ground Lease and no Guarantor is required under the Ground Lease.
16. Declaration of Covenants, Conditions and Establishment of Restrictions and Grants of Easements. Reference is hereby made to that certain Declaration of Covenants, Conditions and Establishment of Restrictions and Grants of Easements dated as of September 1, 1989 by and between Bell Gardens Associates and the Bell Gardens Redevelopment Agency, recorded on December 20, 1989 in the Official Records as Document No. 892048054; as amended by that First Amendment to Declaration of Covenants, Conditions, and Establishment of Restrictions and Grants of Easements dated as of November 17, 2010, and recorded on December 21, 2010 in the Official Records as Document No. 20101891678; that Second Amendment to Declaration of Covenants, Conditions, and Establishment of Restrictions and Grants of Easements dated as of March 24, 2011, and recorded on March 29, 2011 in the Official Records as Document No. 20110463814; and that Third Amendment to Declaration of Covenants, Conditions, and Establishment of Restrictions and Grants of Easements dated as of March 30, 2015, and recorded on April 1, 2015 in the Official Records as Document No. 20150354880 (collectively, the "Declaration"). Ground Lessor hereby certifies that as of the Effective Date, (i) the Declaration is in full force and effect and has not been modified or amended, except as set forth above; (ii) to the best of the undersigned's knowledge, there is no existing default or violation under the Declaration (nor any grounds therefor after the passage of time or the giving of notice thereunder, or both) by any of the parties to the Declaration; and (iii) there are no sums which Ground Lessor is entitled to receive or demand under the Declaration that remain unpaid.
17. Defined Terms. All terms not defined in this Consent and Estoppel shall have the same meaning ascribed to them in the Ground Lease.
18. Due Authorization, Execution, and Delivery. Ground Lessor is duly authorized to execute this Consent and Estoppel, and this Consent and Estoppel has been duly executed and delivered by Ground Lessor. No consent by any court, agency, bureau or other third party, governmental or non -governmental (other than any such consents that have been actually obtained), is required. for Ground Lessor to execute and deliver this Consent and Estoppel.
19. Governing Law. This Consent and Estoppel shall in all respects be governed by, and construed in accordance with, the laws of the State of California. [END OF TEXT. SIGNATURES APPEAR ON FOLLOWING PAGE]
4 5943904.3
Exhibit 2 202
N WITNESS WHEREOF, Ground Lessor has executed and delivered this Consent and Estoppel as of the Effective Date.
GROUND LESSOR: CITY OF BELL GARDENS, a municipal
corporation
By:
Gagner City N aYTager
APPROVED AS TO FORM:
A i old, . Alvarez-Glasman, Cl j Attorney
ATTEST
Kristina Santana, City Clerk
89439043
Exhibit 2 203
EXHIBIT A
Legal Description
PARCELS 1 TO 15 INCLUSIVE OF PARCEL MAP NO. 20044, IN THE CITY OF BELL
GARDENS, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS FILED IN BOOK 244, PAGES 18 TO 23 INCLUSIVE OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.
PARCELS 9 AND 10 ABOVE ARE ALSO SHOWN AS PARCEL A OF CERTIFICATE OF COMPLIANCE NO. 2010-008 RECORDED NOVEMBER 03, 2011 AS INSTRUMENT NO. 20111493134 OF OFFICIAL RECORDS.
EXCEPT THEREFROM ALL OIL, GASES, MINERALS AND HYDROCARBON
SUBSTANCES IN AND UNDER SAID LAND AS RESERVED IN VARIOUS DEED OF RECORD, ONE OF THEM BEING REGISTERED ON JUNE 14, 1945 AS DOCUMENT NO. 10090-N OF TORRENS.
ALSO EXCEPT THEREFROM ANY AND ALL OIL, GASES, MINERALS AND HYDROCARBON SUBSTANCES RIGHTS PREVIOUSLY RESERVED IN DEEDS. 8943904.3
Exhibit 2 204
EXHIBIT B
Bell Gardens Shopping Center Ground Lease dated September 1, 1989, executed by The Bell Gardens Redevelopment Agency, a public body corporate and politic, as Landlord, and Bell Gardens Associates, a California general pal .riership, as Tenant, a memorandum of which was recorded in the Official Records of Los Angeles County, California, on December 20, 1989 as Document No. 89-2048053.
First Amendment to Bell Gardens Shopping Center Ground Lease and Disposition and Development Agreement dated March 20, 1992, executed by The Bell Gardens Redevelopment Agency, a public body corporate and politic, as Landlord, and Bell Gardens Associates, a California general partnership, as Tenant, and recorded in the Official Records of Los Angeles County, California, on May 22, 1992 as Document No. 92-936427.
Third Amendment to Bell Gardens Shopping Center Ground Lease dated March 19, 2002, executed by Bell Gardens Community Development Commission F/K/A The Bell Gardens Redevelopment Agency, a public body corporate and politic, as Landlord, and Burnham Pacific Operating Partnership, L.P., a Delaware limited partnership, as Tenant.
Fourth Amendment to Bell Gardens Shopping Center Ground Lease dated on or about May 23, 2002, executed by Bell Gardens Community Development Commission F/K/A The Bell Gardens Redevelopment Agency, a public body corporate and politic, as Landlord, and POB Apollo Bell Gardens, L.P., a Delaware limited partnership, as Tenant, and recorded in the Official Records of Los Angeles County, California, on November 12, 2002 as Document No. 02-2718505.
Fifth Amendment to Bell Gardens Shopping Center Ground Lease dated on or about September 25, 2006, executed by Bell Gardens Community Development Commission F/K/A The Bell Gardens Redevelopment Agency, a public body corporate and politic, as Landlord, and Florence Eastern Marketplace LLC, a Delaware limited liability company, as Tenant (provided, however, that Exhibit A was never attached thereto).
Assignment and Assumption of Seller's Interest in Ground Lease dated December 31, 1997, executed by HPBA II -Bell Gardens Associates, L.L.C., a Delaware limited liability company, as Assignor, and Burnham Pacific Operating Partnership, L.P., a Delaware limited partnership, as Assignee, and recorded in the Official Records of Los Angeles County, California, on January 6, 1998 as Document No. 98-15923.
Assignment and Assumption of Ground Lease dated April 9, 2002, executed by Burnham Pacific Operating Partnership, L.P., a Delaware limited partnership, as Assignor, and POB Apollo Bell Gardens, L.P., a Delaware limited partnership, as Assignee, and recorded in the Official Records of Los Angeles County, California, on April 22, 2002 as Document No. 02-928715.
Assignment and Assumption of Ground Lease dated December 24, 2002, executed by POB Apollo Bell Gardens, L.P., a Delaware limited partnership, as Assignor, and Bell Gardens Associates, LLC, a California limited liability company, as Assignee, and recorded in the Official Records of Los Angeles County, California, on December 24, 2002 as Document No. 02-3164931. 8943904.3
Exhibit 2 205
Assignment and Assumption of Ground Lease dated January 4; 2007, executed by Bell Gardens Associates, LLC, a California limited liability company, as Assignor, and 1832 Durfee, LLC, a California limited liability company, and Florence Eastern Marketplace LLC, a Delaware limited liability company, collectively as Assignee, and recorded in the Official Records of Los Angeles County, California, on January 5, 2007 as Document No. 20070025914.
Assignment and Assumption of Ground Lease dated January 4, 2007, executed by 1832 Durfee, LLC, a California limited liability company, as Assignor, and Florence Eastern Marketplace LLC, a Delaware limited liability company, as Assignee, and recorded in the Official Records of Los Angeles County, California, on January 5, 2007 as Document No. 20070025915.
Assignment and Assumption of Ground Lease dated January 15, 2013, executed by Florence Eastern Marketplace, LLC, a Delaware limited liability company, as Assignor, and Prime/CRDF Bell Gardens, LLC, a Delaware limited liability company, as Assignee, and recorded in the Official Records of Los Angeles County, California, as Document No. 20130078498. 5 8943904,3
Exhibit 2 206
SHOPPING CENTER
GROUND LEASE
THE BELL GARDENS REDEVELOPMENT AGENCT
LANDLORD
BELL GARDENS ASSOCIATES,
a Cali,forni'a general partnership
TENANT
PrN
LAN".-Xt2I-A
41 D D/0 '
05800050.051/003[94]
CMO 9043 1175
CONF f.DLNI IAL
Exhibit 2
207
(loc., acA oi2L, Lo-„„
7c. .[
a� to C --1 ro'"
091389-14
erDjt.
TABLE OF CONTENT�
?exe
ARTICLE 1. LEASED PREMISES 1
1.1 Leased Premises
1.2 City
1.3 Default Rate 1
1.4 Encumbrance. 2
1.5 Governmental Restrictions 2
1.6 Improvements 2
1.7 Losses and Liabilities.
1.8 Person
1.9 Redevelopment Plan 2
1.10 Rent 2
1.11 Representatives 3
1.12 Transfer/Transferee 3
1.13 Ownership and/or Control.., 3
1.14 CC&Rs 3
1.15 Site Plan 3
1.16 Scope of Development 3
1.17 Schedule of Performance
1.18 Plans
ARTICLE 2. TERM 4
1 1
2 2
4 4
2.1 Term 4.
2.2 Options to Extend 4
2.3 Possession; Risk of Loss; Covenant
of Quiet Enjoyment; Condition of Title 5
ARTICLE 3. RENT PAYMENTS
3.1 Construction Period Rent 6
3.2 Operation Period: Annual Minimum
Rent and Annual Percentage Rent
3.2.1 Operation Period: Annual
Minimum Rant
3.2.2 Operation Period: Annu^.1
Percentage Rent 7
3.2.2.1 AnnualPar:.entage Rent 7
3.2.2.2 Gross Revenues 8
3.2.2.3 Exclusions From Gross
Revenues 9
3.2.2.4 Quarterly Installments of
Annual Percentage Rent 9
3.2.2.5 Annual Adjustment 9
0580D050.051/003[93]
Exhibit 2
CHB 9043 1176
CONFIDENTIAL
208
6 7
091389-15
TABLE OF CONTENTS
3.2.2.6 Maintenance of books and
Records; Inspection tnd
Audit 10
3.3 Late Charge; Miscellaneous 11
3.4 Negation of Partnership 11
ARTICLE 4. USES 11
4.1 Use of the Leased Premises 11
4.2 Crant Easements 12
4.3 Non -Discrimination 12
ARTICLE 5. CONSTRUCTION BY TENANT 14
5.1 Duty to Construct 14
5.2 Conditions to Construction of
Improvements 14
5-.2.1 Submission and Approval of
Plans and, Specifications
and Other Required. Natters 14
5.2.2 'Builder's Risk and Other Insurance 13
5.2.3 No Construction."Before Notice;
Notice of Nonresponsibility 15
5.2.4 Completion of. Improvements and
Other Work; Compliance With Law
and Quality 13
5.3 Mechanic's, Haterialcsan's, Contractor's,
or Subcontractor's Liens 16
5.4. Alterations, Modifications or Replacements
of Improvements; All Work on Written
Contract; Approval of General Contractor;
Performance and Payment Bond 17
3.3 Ownership of Improvements 18
3.6 Certificate of Completion 19
5.7 Development Laan 19
5.7.1 Disbursement Procedures 19
5.7.2 Interest Rata and Payments 20
5.7.3 Definitions 20
5.7.4 Disputes Concerning Net Sale
Proceeds and Net Refinancing
Proceeds 24
0580DO5O.051/003(96] -ii- O91389-15
Exhibit 2
209
CH8 9043 1177
CONFIDENTIAL
TASL8 OT CONTEN3'S
Page
5.7.3 Exercise of Option to Purchase 24
5.7.6 Application of Governmental Grant 25
5.7.7 Landlord/City's Installation of
Developer's Offsite Improvement' 25
ARTICLE 6. REPAIRS AND MAINTENANCE 25
6.1 Landlord's Nonresponsibility 25
' 6.2 Tenant's Duty" to Maintain Premises 25
6.3 Repair; Destruction 26
ARTICLE 7. LEASEHOLD FINANCING 26
7.1 Definitions: Leasehold Mortgage; Lender 26
7.2 Conditions To 'Obtaining Leasehold _
Mortgage 27
7.3. Lender's Rights 28
7.4 Obligations.of Construction Lender 30
7.5 Right of the Landlord to Cure D:faults .
Under -Encumbrances 30
ARTICLE 8. ASSIGNMENT AND TRANSFER 31
8.1 Assignment of Landlord's Interest
in Lease or the Leased Premises;
Recoupment Fee 3,1
8.2 Transfer of Lease .or Leased Premises by
Tenant; Transfer of beneficial Interest or
Ownership oi_ Tenant;.. Selection of
Management Entity and Assignment of
Beneficial Interest in or Ownership of
Entity; Subleases, Licenses or. Concession
Agreements 31
8.2.1 Transfer of the Lease, the Leased
Pre*isas, .or the Improvements to
be' Constructed Thereon 31
8.2.2 Transfer of Ownership and/or
Control of Tenant; Retention
of Management Entity and
Transfer of Interest Thaz'ein 32
8.2.3 Concessions, Licenses and Subleases 34
8.3 Investigation of Proposed Transferee; Costs 36
O580D050.051/003[97)
-iii- 091389-15
;M8 9043 1178
C t ENTIAL
210
TABLE OT CONTENTS
Page
ARTICLE 9. TAXES AND IMPOSITIONS 37
9.1 Tenant To Pay Impositions 37
9.2. Proration of Iispositions 38
9.3 Payment Before Delinquency 38
9.14 Contest of Imposition 38
9.5 Tax Returns and Statements 39
9.6 Indemnification 39
9.7 Payrnent,by Landlord 39
ARTICLE 10. UTILITY SERVICES 40
10.1 Tenant's Responsibility 40
10.2 Landlord Has Ho Responsibility 40
ARTICLE 11. INSURANCE 40
11.1 Fire and Extended Coverage Insurance 40
11.2. Cooperatidn.in.Obtaining Proceeds of,
Fire and Extended Coverage 40
11,3 Builder'! Risk and Worker's
Compensation Insurance 40
11.4 Public Liability Insurance 41
11.5 . Policy Form, Content and Insurer 41
11.6 Indemnification 42
ARTICLE 12. CONDEMNATION 43
12.1 Definitionx.: Award; Taking; Taking Date;
Total Taking; Substantial Taking; Partial
Taking; Notice of Intended_ Taking 43
12.2. Total or Substantial Taking of
Leased Premises 44
12.3. - Apportionment -and Distribution of Award
for Total Taking and Substantial Taking 44
12.4 - Partial Taking; Abatement and
Restoration - 44
12.5 ' Apportior ent and Distribution of
Award -For Partial taking 45
-12.6 Taking for Teeparary Use 45
ARTICLE 13. DEFAULT 46
13.1 Events of Default 46
13.2 Notice of Default; Tenant's Right to Cure 47
13.3. Landlord's Right. to Cure Tenant's Default 48
13.4 Notice of Landlord's Default; Tenant Waiver 48
058ODO50.051/003(98]
-iv- 091389-15
Exhibit2 CMB 9644) 1179
CONFIDENTIAL
TABLE OF CONTENTS
13.5 Landlord's Remedies 49
13.5.1 Right to Terminate 49
13_.5.2 Right to Reenter 49
13.5.3 Right to Relet on Tenant's
Account 30
13.5.4 Effect of Reentry 51
13.6 Remedies Cumulative 51
13.7 No Waiver 51
13.-8 Delays in Performance 51
ARTICLE 14. EXPIRATION; TERMINATION 5.2
14.1 Tenant's Duty To Surrender 52
ARTICLE 15. TENANT'S REPRESENTATIONS AND WARRANTIES 53
15.1 Tenant's Representations and Warranties 53
ARTICLE 16. MISCELLANEOUS 55
16.1 Estoppel Certificate 55
16.2 Notices 56
16.3 Attorneys' Fees 56
16.4_ Headings 57
16;5_ Rights of Successors 57
16.6 Amendments in Writing 57
16.7 Time of Essence 57
16.8 Interpretation 57
16.9 Applicable Law; Severability 57
16.10 Exhibits 58
16.11 Waiver of Subrogation 58
16012 Attornment by Tenant 58
16.13 Short Fora of Lease 58
.16.14 Landlord's Rights ,of Inspection 58
16.15' Nonmerger of Yee and Leasehold Estates 59
16.16 Nonliability of Landlord and
City Reprejentatives 59
16.17 Counterparts 59
_16.18 Authority 59
16.19 _Option to Purchase 59
16.20 Guaranty of Tenant's Obligations 61
16.21 Cis Station, Parcel Easements 61
16.22 boy's Market Relocation 62
0580D050.051/003(99)
-v- 091389-15
Exhibit 2
212 CM8 9043 1180
CONFIDENTIAL
Table of Exhibits
A Legal Description of Leased Premises
site Plan
C Scope.of Development
D Schedule of ' Perfortanc.
E Estoppel .Certificate
Guaranty of Tencnt's Obligations
G Grant Deed
H List of Mitigating Measures
0580D0so.o3L/003{100]
-vi- 091389-14
CM8 9043 1181
ExI pft IDENT IAL
213
BELL GARDENS GROVWD LEASE -
This Ground Leaaa ("L,ea=a"
purpose's as of the 1st:day of Sept ) is dated for identification into by and bttwcan the fallowing embar, 1989, and is entered E BELL GARDENS �REi=VELCP'f?, * (callactiv:jy, the "Parties and politic. ("i.andlard" NT AGENCY, a public bod „)'
THE
}, and BELL GARDENS ASSOCIATES rat
general partnership ("Tenant"),'
and the In consideration of the
ed under that
cos and a payments to be made hereunder
that greements contained herein, and as
Option ro certain Disposition and Developctent Agreementovi Lease ( DDA") between the with
sore, .dated as of May Ptrtiea-or their and Tenant hereby 7 23,. 1988, Landlord 7 ' to Teases. herein-
after y leases from Li hereby' passes to ereint
defined' as the "Leased Premd+jo"rd'`tiie: real prollowi, ttrm- and conditions. see" upon the following tarma
The terms and conditions of this Lease h_treby superctde and a:Heel the kerms and dated as of conditions of that-cert~afn Ground Lta9t darned and Se tember 1, 1187.. enured :into' ' b
Leaati" Tenant prior .to'. the execution of this Lease between },_ which Prior Lease is of no further fore. or effect. 'docUmen.t identif'jcatia {"Prior
located in the n number of the Prior Lease t' The
0580C0S0.051/0Q3lower ,Ieft hand corner of the Prior Least, is is
ARTICLE 1. DEFINITIONS
1.1 Leased Premises.
demised The term "Leased
and leased hereunder,Poraises" means the real property
tyres, land leas gether.with all buildings, struc-
on' The L=aced ntseand fixtures now -or hereafter erected .there- on. Prezjses are located in the City of Bell Gardens,
COuCarl r of Loa Angeles,, State of California .and are more 7 described in the Legal Description attached hereto
Exhibit A. Particu-
aa
1.2 Cites.
forma municipal The term "City mean the City of Bell Gardens a , Cali -
i.3 Default Rata.
est equal The
term "Default Rate" _
g to the lesser of means.an annual rite of -inter-
est interest cthe led from (i) three percent
lYatian:j karma to time b 3X) above the rate
said bankTrust' and Savings _Association o' the Bank of America ceases operations;.then in- the event that cia117.secur: ,.then another eat:bliatied and fjnan-
ter=cial jeans institutional. lender -designated by
to large businesses C havin Agency) nn short
i a high credit standing
0380DOso.O.51./o03
-I-
Exhibit 2 -
CcohFxarvTz 14
091389-14
(which rate is commonly referred to as the prime or reference rate), or (ii) the hight.at lawful rate.
1.4 tncumbrance.
The term "'ncumbrance" means and includes any mortgage, deed -of trust, encumbrance, lien, security instrument or financ- ing conveyance of any kind, including a mile and leave -back.
1.5 Governmental Restrictions.
The term."Covernmental Restrictions" means any and all
Iaus,. statutes, ordinances,. codes:, rules, regulations, writs, in. ..junctions, orders, decrees,' rulings', conditions of approval, or authorizations, now in .force or whichnay hereafter be in force, of "any gove rnmental entity, agency'or political subdivision.
1.6 Improvements. -
The term "Improvements" means all grading and excava-
tion to be done on .the Leased Premises .,by. Tenant is well as all buildings, structures, fixtures, parking, landscaping, and other Work, " constructions al"terations end improvements of whatsoever character to bee done by Tenant on; 'around, under or over the Leased Premises pursuant to the DDA or this Lease.
1.7 Losses and Liabilities.
The term .Losses and Liabilities" means all claims,
causes of action,, liabilities, losses,'.damages, injuries, expens- es, charges, penalties or costa incurred by the.indcmnified party with respect to counsel of its. choice (including without limita- tion re.as':nable attorneys' fees and coats.), ot whatsoever charac- ter, nature and kind, whether to property or to person, and whether by direct or derivative action, known or unknown, sus- pected or unsuspected, latent or patent, existing or contingent.
1.8 Person.
"Person" means an individual, corporation, partnership, joint venture, association, fire, Joint stock company, trust, unincorporated association or other entity.
1.9 Redevelopment Plan.
The.term "Redev.elopment Plan" means the "Redevelopment Plan for the Centre]. City Redevelopment Project.Area," adopted by Ordinance N.o. 399 of the City Council of_the City -of Bell Gardens on' June 11, 1979, as it -may from time to time be amended.
1.10 Rent.
The term , means t "Construction
"Annual Minimum Rent" and"AnnualPercentage eRent" as de Rent", ( as defined in 0580D050.051/003
-2-
091389-14
Exhibit 2
215
cme 9043 1183
COhlF zrr .._
Article 3) and all other sums required to be paid by Tenant as additional rent pursuant to the terms of this Lease.
1.11 Representatives.
.The term "Representatives", as used with respect to any person or.entity, wane any or ill of such person's or entity's respective predecessors, successors, assigns, _agents, officials, employees,' members, independent contractors, affiliates, princi- pals, officers, directors, attorneyi, accountants, representa- tives, staff, council members, board 'Members, and planning com- missioners.
1.12 Transfers Transferee.
The. term "Transfer" means any transfer, sale, assign-
ment, lease., sublease, license, franchise, concession, operating agreement, pift',.hypothecation, mortgage, pledge or Encumbrance, or the like, to any person or entity ("Transferee").
1.13 Ownership and/or Control.
The terra ."Ownership and/or Control" means, without
_limitation, all voting rights and beneficial' ownership with respect to all classes of stock, , interests in partnerships and/or beneficial interests -under a trust, as May be applicable to the type of entity in question.
1.14 CC&Rs.•.
The terra "CC&Rs" means .that certain Declaration of
.Covenants, Conditions and Restrictions dated as- of September 1, 1989, .and recorded on in the Office of
• the Los Angeles County Recorder as Instrument No. , and such other covenants, conditionA and restrictions as ars recorded in connection with the development or use of the Leased Premises by Tenant.
The CC&Rs are to be recorded following execution of
thin Lease and the recordation information referenced above shall, promptly upon recordation of the CC&Rs, be confirmed in writing by the Parties and inserted in all execution copies of this Lease.
1.15 Site Plan.
The terra "Site Plan" means the Site Plan for -develop- ment of the Leased Premises, a copy of which is attached hereto as Exhibit 25, as it may be amended from time. to time.
1.16 Scope of Development..
The term "Scope of Development" means the Scope of
Development attached hereto 13 Exhibit C, as it may be amended from time to time.
0580D050.051/003
-3- 091389-14
. CMBtv9O43 1184
Ex�t�blt5IDENTIAL
216
1.17 Schedule of Performance.
The terra "Schedule of Performance leans _-the Schedule of Performance attached hereto as Exhibit D, ai it may be amended from time to time.
1.18 Plans.
• The term "Plans" means all preliminary and final con- struction drawings and specifications, grading plane, landscape plans; site development plans, plat plans, architectural render- ings and elevations, material'specifications;"parking plans and all Other approved plans for the Irnproverzsenta to be constructed on the Leased Premises.
ARTICLE 2. TERM
2.1 Terra.
The terra of this Lease. ("Teri.."') shall begin on the date ("Effective Date") upon_ which_Tenant recaivis_.a fully executed copy of this Lease from - Landlord, and sha11 end at midnight on _the date which is thirty-four'(34) years'-frori the Effective bate, unlesi the Terra of this Lease ii -sooner terminated 'or extended as provided for herein.
When the Effective Date has been _determined, such data sha11 be inserted in=the blank provided at the end of this sen- tence and Landlord and Tenant -shall, -following .ouch insert,;on, initial each copy of this Lease in the margin opposite said insertion.
Effective Date: September 1, 1989
2.2 Options to Extend.
`tenant' sha11` .h:ev thewoption-rte, ;eztcttid the:-- on"g"ina'1 terei ;ofr:this. Legs a,, subjact='to�'i13=_'tha'D,rovisione of �thisr°Le se, inc1uding:° bus::;-not:Iieited'.-to:=:p i'a
rov ioris= ease for= incr sea in Rent,
for', -(.6):7'additional::�psriod nf.: ten-:(1Q,).,-'years;;:e"ach,- each such period-coarmencing upon the expiration' of the, term of the immedi- ately preceding period. With respect to each such extended terns; Tenant •may• exercise its option hereunder b7 'giving Landlord written notice- (in thc: manner, prescribtd•by Section 16.2) of tenant's irravocabl-e exerciie'of said —option not less than six - (6) �aonths and not more thara_'one .(1) year uefore the end of the Term then in effect.' Failure to,Exerciss the'option for 'any such ten (10) year period -shill •automatic:111 -.terminate and nullify the options for all subsequent periods. After the exercise of my option to extend,.:11. references its. this Leese to the Term ereof shall_ be considered to 'mean" the. ':err as extended, and all references -to the end of the Terra shall be considered to mean the end of the Term -as extended.
05803050.051!003
-4- 091389-14
Exhibit 2
CMB 9043 1185
CONFIo8WIRL
Lessee's right to exercise the option to extend for
each period is sub3ect ' to satisfaction of the following condi- tions precedent: (i) this Lease _shall be in effect -t the time notice of exercise of an option to extend is' gi�an and on the .last day of the Term of. the Leese prior. to its extension; (ii) Tenant shall not be in Default under any provision of this Least at the time notice of exercise of the option is given or on the last day of the Term prior - to. its. extension, or at any time during the Term for .a. cumulative period of 'more than one hundred (100) days, and (-iii)-the natite of exercise the.option to extend shall be delivered in strict corrtplianre with_the requirements and limitations set forth in -this Section. Th. option to extend the Term provided in this Section shall immediately and automatically terminate and shall ba of no further force or effect in the event that the Lease is terminated.
2.3 .Possession; Risk of Loss; Covenant of Quiet Ert'oY-' rent; Condition of Title.
Possession of the Leased Premises shall be delivered to Tenant on the Effective Date and Tenant shall "take possession and all risk of -loss shall pass ai 'of that date.
Landlord covenants that, subject_ to t_he limitations
expressly, set forth herein, Tenant, upon Tenant's timely payment of the Rent and:performance-of Tenaitt's'covenantz and obligations 'index this Lease, -may quietly have; hold, arid enjoy the Leased 'remises during the _Term of this Lease; without hindrance or interruption by Landord, sublitt :to the Landlord's_ right to enter upon the L'eai'e'd Premises as provided herein.
Except as expressly provided in the DDA, Landlord has
made no representation* or warranties, express or implied, with respect to the Leased Prei'xises and -Tenant shall acquire no rights, -easements or licenses in -or to the Leased Premises by implication or otherwise except as expressly set forth herein. .Landlord shall not be responsible for any latent defect or change of condition in the Leased Premises and the Rent hereunder shall in no case be' withheld- or diminiihed .on account of any defect in the Leased Premises or for any change of condition, or for any damage occurring thereto.
Tenant hereby accepts the Leased Pr2mi-ses in their
current condition and 'tate, "as ii", and' without recourse to Landlord es -to the title,. nature,_ condition, or -usability there- of. 'Tenant does hereby represent and warrant to Landlord that Tenant is fulls► acquainted with the.. -nature .and condition,. in all respects, of the Leiied Preiniaea; _ inc.ludin , without li*itation, the title of Landlord, the soil:ard geoldb7 of the Leased Premis- es, the -sidewalks and structcires adjoining the same, matters or states of fact reflected 'on any tentative or final parcel or subdivision snap or concerning or related_to th'4 zoning, subdivi-. lion, permitted uses on or physical condition of the Leased 0380D030.031/003
-3- 091389-14
Exhibit 2
218
CMS 9043 1186
Premises, and the nature and extent of the rights of others with respect to the Leaaa_d- Premia.es whether by way of easement of way, lease, sublease, pgssession,._-iien, encumbrance ' right reservation, condition, ' covenant restriction ° license, Tenant agrees that this . Lease ' and its iteres t_ there ndelr tare subject to (i) the CC&Rs and all other nattera.provided•for or recorded_ in connection with the. DDA .and/or the -development of the Leased Premises *by Tenant, and (ii) any And all other exceptions, .reservation:, liens, encumbrances, qualifications, covenants, -
conditions, restrictions, easements, rithti'of war, or matters or states of fact related to. or concerning the Leased Premises or the' 'title thereto; including„ ,_ -any raatte-rs or states of fact reflected on any tentative Or -final parcel. or subdivision map obtained by Tenant and ..any _other'predevelopmant. or development activi.ti.ei of Tenant (the' items listed in (i) - and (ii) above art Collectively 'referred- to as, "The Exceptions"). Landlord agrees that iti' fee 'interest in 'the. Leased Premises will not be encun- bered' by a mortgage, deed :of trust .or other like security instru- ment at the time of the conveyance of the Leased Premises to Tenant under this Lease.
ARTICLE 3.
RENT PAYMENTS
3.1 Construction Period Rent.
The terra "Construction Period" means that portion of
the Term, if any, b'egtnning on ,the'Effective Date and ending on the .date which is twelve .(12) iaonths - f_rora. "the Effective Date.
The "Construction.Period Rent" shall be $14,430 per month, pay- able in advance;' 'provided, _however, that the Construction Period Rent shall be. increased to $1543.51 per month payable in advance in. the 'event that the Agency, elects to 'include the parcel desig- nated in the DDA as'the Thrifty Parcel"(hereinafter "Gas Station Parcel") pursuant to Section 1.2.2' of the 'DDA or in the event that the Gas_ Station Parcel - is ..otherwise included in the Leased .Premises -by the agreement o f the Parties. The One Hundred and Fifty Thousand Dollar ($150,000) Developer's Fee paid by Tenant to Landlord pursuant to Section 3.1 of the DDA shall be credited against Tenant', Construction Period. Rent obligation so long as and to the extent that s,uch Developer's Fee remains available, and, 'thereafter, Tenant _shall Far_. Such Construction Period Rent out of its oun funds a1 and' when such' Construction- Period Rent becomes due. Construction Period Rent for the first month or portion thereof during the Construction Period shall be paid on the, day the Construction 'Period: :corrrmences and the Construction Period Rent for etch 'subsequent month or portion thereof during the Construction Period' shall" be._paid On the first day of such month. • " Construction Period Rent for any partial month in the Construction Period Shall be prorated based on t thirty (30) day month.
0380D050.0511003 -b-
•091389-I4
3.904 1187
3tDb RT IAL
219
3.2 Operation Period: Annua1_ Minimum, Rent and Annual
Percentage Rent.
The tern "Operation Period" meta, thEt pr!ftion of the
.Tarn beginning on expiration. of the Construction Period and continuing until the expiration or earlier termination of this Lease. During the Operation Period; Tenant shall pay to Landlord '(i) an Annual Hinimum Rent as. defined -in Section 3.2.1 below, (ii) an Annual Percentage Rent as defined in Section 3.2.2.
3.2.1. Operation Period: Annual Minimum Rent.
The Annual Minimum Rent payable for each Lass Tear, or
portion thereof, during the -Operation period sha11 be follows.
The Annual Mini• -•-m Rent for the first five -(3) Lease Tears of the Operation.-Perioc shall be $692,6208 -provided., however, that in the .event that.. the Agency eleota to include the Gas Station' Parcel in the Leased .Premises, pursuant : to 'Section /.2.2 of the DDA, or in the event - that the Gas Station Parcel is otherwise included in the .Lessed,Premis-es- by the agreement of the Pa .ties, .the.Annual Minimum Rent -shill 'be increased 'to $736,830r.— As of the first dayof the sixth'. (6th). `Lsass sar -and every five (5) year day:
of
'thereafter. (the "AdjustMent -Dates"), the: mutual Minimum Rent then in effect shill be - increased by stn aaount equal to the cumulative total. resulting.: fro, z four` percent (4%) per Lease Year increase in' the -Annual Hinimua Rent since the last Adjustment' Date (or,;' for the first Adjustment Data, since the commencement of the Operation Period).
•
The Annual Hinimum Rent shall be paid in advance in 12
equal monthly installments payable on or before the first day of each calendar month during the Operation Period.; Annual Minimum Rent for the first month or' portion thereof. -during the Operation Period 'shall be paid on the. day the Operation Period commences.
Annual Minimum. Rent payable --for any partial Lease Year or partial month during the Operation Period shall be prorated based on a 360 day'year and thirty"(30) day month. Each of the consecutive •twelve'(12) calendar.month.parioda beginning on the first day of the calendar month durin=:which the Operation Period commences shall be. referred to as a "Lease Year" or "Lease Years" for the purposes of this -Lease, except that, if the term of the Operation Period Commences ,on - a day other .than the first day of a month, the first Lease Year shall be deemed to bathe first eleven full calendar rsontha- after the.Commencement of the Operation Period, plus any partial. month between the .commencement of the Operation Period and the first full calendar month thereafter.
3.2.2. Operation Period: Annual Percentage Rent.
3.2.2.,1. Annual Percentage Rent-. In addi-
tion to the Annual Minimum Rent,- Tenant shill pay to Landlord, as additional rent hereunder, ins without any reduction for Annual -0380D050.051/003 -7-
091389.;14
Exhibit 2
C 6 9O432288
CONFIDENTIAL
Minimum Rant paid or payable, a percentage rent ("Annual Percent- age Rant") aqu:1 to One Percent. (1X) -of -the "Gross Revenues" (as hereinafter defined) for the preceding Lease Tear.
3.2.2.2. Cross Revenues. "Gross Revenues"
shall mean all gross inccme, rentals, revenues, payments and consideration, of whatever form or nature,' whether direct or indirect, received by or paid to or for the account or benefit of Tenant or any Affiliate.of Tenant or any o.f their agents, repre- sentatives, or eruployees, from any and all sources, resulting from or attributable to the. ownership; operation, leasing occupancy of the. Leased P'rernises;- determined on the bass and sound",cash basis accountiri n of
basis, and shall include.,. but pnot tbeelimitedrto o any consistent the"".� fcsllouin � � .,� T and all of
j (but` without duplication of any item): (i) gross
fixed, .arinimunt and guaranteed rentals paid by. occupancy tenants ,of the `Leased Premises under occupancy ' leases, and any similar rentals paid by' -`occupancy 'tenant; under occupancy -leases; •
(ii)'0verage, additional, participation,. percentage. and similar rentals . paid by occupancy' tenenta under' occupancy leases; • (iii.) late charges{ and interest payable .on rentals; (iv) amounts .paid as. a result• of :provision! in -dccupincy'leaasi 1peraaitting the landlord thereunder "to receive` or share' in'receipt• from the subleasing of' space of assignment of Such occupancy lease;(v) rents and receipt; frori_, license,. c©rices=fops, 'vending ma- chines and similar items; '(vi) other fees_, charges or payments not denominated as rental but payable for or'in connection with the rental of office,. retail, .storage, or ''other space in the Leased Premises; (vii) 'consideration `received in'whols or in part for the cancellation, modification, extension or renewal of an occupancy lease; and (viii) proceeds of any rental or business interruption "insurance,. or any._:other revenues or proceeds of a similar nature or character to the revenues described above.
If Tenant or any other Person is occupying or using the Leased Premises or'a portion, thereof Without payment of rent or at a . rate less than the fair market rental . for the space at issue, then the rents received.by Tenant from that space shall, for purposes of determining Gross Revenues, be deemed to be an amount equal' to the average'rent for comparable apace' on the Leased Premises. In the event that. Landlord and Tenant are unable to'agree on the fair market rental of the..ipace at issue, or th. average.rent for, comparable'space, then P. matter shall be resolved by -an appraisal conducted in accordance with the procedure set forth in Section 16.19 of this Lease.
Any non -cash consideration received for or on &ccount
of any of'the foregoing shall, for the purposes hereof, be valued at its fair value when received and included in Gross 'Revenues at the time it iz received. 'Any dispute concerning the fair market 05800050.051/003
091389-14
- Exhibit 2
221
CMS 9043 11,89
CONFTDFNTTAL-
value of such non -cash consideration shill be resolved by an appraisal.canducted in acCordtnce with the procedure set forth in Section 16.1! of this Lease. Any payments.under or -with respect to any promissory note or an assignment thereof (including -with- out limitation assignments for security purposes) shall be in cluded lin Cross Revenues at the time teceived", provided that if, as of the'ssaturi'ty Of the notes (whether' by passage of the fixed maturity date .or by acceleration -or. otherwise) any sums shall remain owing under my Such note or assignment of note, then in such case" the discounted val'us'of such note based on the remain- ing .principal_balance thereof end ,using a discount rate reason- _ab-ly sati afactbry,to Landlord shell be included with Cross Reve- nues for tht .Lease. Tear during which the maturity of the notes shall occur... With respect_ to any .lease made _between Tenant, as lessor, '.and any Affiliate of Tenant, as lessee, if the lessee .thereunder does not itself occupy or se all such -leased property but .instea u
d assigns 'or subleases. all or' any :portion of those
leased premises , then any, rental or other consideration derived from such sublease or assignMent.in excess. of the rental payable by such leased to Tenant' .(which shall .b.' allocated to such sub- leased space, if applicable,'on a square footage basis) shall be included within "Gros? Revenues"'fh addition to all rental pay- able by such lessee under its lease.
3.2.2.3. Exclusions From Gross Revenues.
Notwithstanding anyt:hing'inciuded in the above definition of °'Gross 'Revenues" . there shall be excluded from Gross Revenues:
(1) Any security or other deposits of Ten-
ant's lessees unless and until they are actually ap-•
plied to rental owed.
(2) Amounts paid by occupancy tenants pursu-
ant to eacxl'ation provisions in occupancy leases or on account -of taxes, utilities, air conditioning, heating and other pass through.expenses for the Leased Premis-
es.
(3) Proceeds from the sale or refinancing of
the Leased Premises.
3.2..2,.4. Quarterly Installments of Annual
Percentage Rent. Thi Annual Percentage Rent shall be payable in -quarterly installments due fifteen (15) days. saner• the last day pf each quarter (i.e., three.(3) month period) of etch Lease Tear .during the. Operation Period. Each quarterly installment shall be equal -to One Percent (1X)•of.the Gross Revenues for the preceding quarter of,the applicable Lease Year.
• 3.2.2.5. Annual Adjustment. Within thirty
(30) days after the close of each -Lease Year during the Operation Period, Tenant 'shall pal to.._Landlord an amount equal to the excess of the Annual Percentage Rent for the previous Lease Tear O580O050.051/003
-9-
091389-14
CMB 9043 1190
EIM2IDENT I AL
222
over the sum of the quarterly installments of Annual Percentage Rent. paid by Tenant for the first three quarters of such Lease Year. At the time of making laid papaent, Tenant shall submit to Landlord's written statement, prepared at Tenant's:expense and verified by a certified.public accountant to be true and correct, showing -:the amount of Cross Revenues received during such Lease Year and each 'quarter- thereof. Within'thirty (30) days after each such return -is filed or required to be filed With the appro- priate governmental agency, Tenant.shall provide Landlord with a true and- correct copy of itx.state and local sales and use tax returns and state and federal income tax returns for each Lease Year during the Operation Period.
-3.2.2.6. Maintenance of books and Records:
Inspection and Audit. Tenant.'shall keep _full; ,true and correct records and shall require -.its subtenants; concessionaires, and licensee: to keep full, true and correct record: of tll Cross Revenues and other revenues. The records -to be kept shall in- clude but not be-1i>;aited to all .sales slip:o unbilled accounting documents, ledgers, cash-iregi=ter tapes, bank deposit receipts, sales- tag, returns, sales books, 'bank books, bank statements, federal; state and local-tak. returns, .and other records reason- - ably -neces;sa'ry to verify-. Gross Revenues - and other revenues - re- ceived in each Lease_Year (collectively, "Records"). All Records shallrhe kept at. Tenant's principal -place of business for not less -than three (3) yep=rs- after the close of the Lease Year to d,
which they relate; provide ,that each party may at reasonable times remove any.' or ell Records: or Permit-Cr 'cause then to be removed for legal or accounting purposes or for other purposes consistent with these provision: xnd this Lease.
Landlord shall have the right, -during regular business hours and from .time to time .after giving reasonable notice, to do any or all of the following:• to audit: the- Records; to cause an audit of the Records to be made; to make abstracts from the Records; to make copies of any or all of 'the Records; to examine any or all subleases, licensee, and concession agreements; and to make'copies of any or all subleases, licenses, and concession agreements. Tenant shi.11'.m&ke all Records -specified in the notici available at. the' tisxe specified in the notice, if reasona- ble, .and it the place whe=e the Records are 'to be kept;' in addi- tion, Landlord may remove any or all Records to a place or places for the-puzpose.'of inspection. Tenant agrees that it will, within a reasonable .time after any requests by Landlord, furnish or cause to be furnished to- Landlord, such other information with respect to the -Leased Premises as Landlord may, from time to time, riaioriably request, A11. .as
so obtained by Land-
lord shall ,be treated as confidential except ire any- litigation or arbitration. proceedings between the parties and in any tax pro- ceeding,- and except_, further, thtt Landlord .may divulge the information to -a prospective buyer or encumbrancer of -the Leased Premises or of.Landlord's interest in the Lease or to a govern- mentil landlord or employee properly deminding the information, 0580DO50.051/003
-10- 091389-14
Exhibit 2
CMB 904,0 4191
CONFIDENTIAL
If an audit discloses that the Cross Revenues were
understated by more than three percent (3Z) of their actual mount, Tenant _shall pay the cost of that audit and investi- gation;'otherwise, Landlord shall bear the colt of such audit and investigation. If an"audit.or 'investigation reveals that the Grose Revenues have. been' misstated for any reason, the amount due shall be"adjusted as appropriate, and the Party indebted, if any, shill, promptly after the correction, ,pay any difference for the period affected by said adjustment.
3.3 Late Charge; Miscellaneous:
If Tenant fails to make any Rent payment within five
(5) days after the same is du.e, then Tenant ''shall pay to Landlord an additional five percent: (51) of the amount cf such .Rant due as liquidated damages, it.being.agreed:that such eleount rapreients a reasonable, estimate of the losses, costa -and expense= (other than Landlord's foregone interest on the Rent dui,"which shall accrue at the Default rite from 'the_,date such payment is due until the data of.payeaent) that Landlord will suffer in such circumstances.
Acceptance of the Rent without the late charge will not constitute'.a. waiver "o.f. Tenant `s . dsftult __-with. respect to such nonpayment of the rate .charge by 'Tenant; nor —prevent Landlord .from exercising all other rights and reaiedisi" available under the Lease. Landlord `s failure to . require' or 'collect thi late charge in any one or more 'instances. ,shell not coni.titute a Waiver of the 'right to collect subsequent late charges:. The Rent shall be paid without deduction, abatement, offset, prior notice -or demand.
All payments..,of Rent shall be made to Landlord as they become due. in lawful money of the linited States_ of America at _such place as is designated -herein br'Lindlord for the receipt of notices or such other. place ai shall be' designated to Tenant by Landlord in writing from time to time.
3.4 Negation of Partnership.
Nothing in this Lease shall be construed to render
Landlord, a partner..joint.venturer, or associate in any rela- tionship or for any purpose with Tenant, other_ .than that of Landlord and Tenant, norshill this Lesse-bt construed to author- ize either -to act as agent for the other.
ARTICLE 4. USES
4.1 Use of the Leased Premises.
Tenant covenants and agrees for itself, its successors
and. assigns, which covenants shall run with the land and bind every successor or assign -in interest,_ of Tenant, that during development .and use' of the Leased Premises pursuant to this Lease, neither the" Leased Premises nor any portion thereof shall 0580D050.051/003
-11- 091389-14
Exhibit 2
224
CM8 9043 1192
CONFIDENTIAL
be improved, used or occupied. in substantial violation of any Governmental Restrictions, the CC&Rs, the Scope•of Development, the Site Plan, or any final, duly •approvid and effective Plan applicable to the heated Premises, or any portion -thereof. In the event that the above documents impose irreconcilable require- ment s on ,the Tenant with . respect to -the' Leased Premises, Landlord and Tenant agree to work together -to reconcile any such conflict; provided, however, that nothing in this sentence shall be con- strued or understood to excuse Developer's compliance with any applicable Governmental Restrictions or the other documents described above. Furthermore, Tenant shall not aintain, commit,or permit, the maintenance or commission on the asLaased Premises, or any portion thereof, of.any'nuiaance, public or private, as now or hereafter defined by any statutory or decisional law applicable to'the Leased Premises, or any portion thereof.
Notwithstanding anythin:.that is or appears to be to
the contrary in the general provisions of. Sections 4.1 through
4.3 hereof, Tenant agrees for itself; its successors and assigns, which covenants.shall run with the land and bind every successor and Assign in interest of Tenant,' that,Tena.nt.and such successors and.such.assigns 3hali .use the Leired'Premises solely for the purpose- of Constructing', operating,' owning,: tieing and maintaining a shopping center and-aasociated`irnprovementi ("Shopping Center") thereon, in accordance.With and of the quality prescribed by the DDA, this Least, and the 'Scope of'Develogment.
4.2 Grant Easements.
Tenant may enter into agreements granting taserne:•`s
over the Leased Prernis,es,'provided.they Are limited to the expi- ration or sooner 'termination of this _Lease;. ire subordinate to -Landlord's fee interest, and will not interfere with any rights and remedies of Landlord hereundar: Tenant must obtain Land- lord's prior'written consent to any agreement that would grant an easement extending. beyond, the Terns hereof,. or that would inter- fere with any of Landlord's -rights and remedies hereunder.
Landlord agrees that it will not unreasonably withhold its con- sent to and will join -in the execution of such easements over the Leased Premises as may be necessary.to provide utilities to the Leased Premises; provided* ,that Landlord shall not be obligated to incur any cost or expense in connection with such an easement and'Tenant shall•indimnify, defend and hold Landlord, City and their Reprts.ntitives harmless from any Louses and Liabilities in connection Kith the creatibn'or usi of stich easement:.
4.3 Eton -Discrimination.
Tenant, for itself, its _successors and assigns and all persons claiming under. Or through it,,covenants that there shall -'be :no discrimination' against ' or. Segregation' of any person or group of persona on account of race, color, creed, religion, sex, marital status, national origin or 'ancestry, in the leasing, 0580D050.031/003
-12- 091359-14
crioB 9043 1193
EXh b t iDENTIAL
225
subleasing, transferring, use, occupancy, tenure or enjoyment of the .Leiaaed Premises, .nor .shall Tenant or Any person claiming under or' through it, establish .or permit any practice or prac- tical Of'discrimination. or segregation with refer4Pce to the selection, location, 'number, uae or 'occupancy of tenants, licensees, e>irployees or 'vendeea- in the Leased Premises or the improvements thereon. The foregoing covenants shall run with the land.
Tenant, for itself,_it3 successors and assigns and.all
persons claiming under or through it,.covenants that there shall be no_ discrimination against -or- segregation of any person or grpup of•persona on account of race,:color..creed, religion, sex, :marital status, national origin or' ancestry in the construction of -any improvements on the Site.
The Tenant shall refrain. from restricting the rental or lease of the Leased-Premises'on the'basis'of rice, color, creed, religion, sex, marital status, ancestry Or national origin of any person. A11 such leases, deeds :or contracts which ' Tenant . pro- poses_ to, enter into with' re pect to the' lease, sublease, trans- fer, ' use,. .occupancy,, tenure 'or enjoyment.' of my _land in the Leased Premises shall contain 'or -ba _subject to substantially .the following nondiscrimination or,.nonse$regation ClaZuses which shall be binding on'a11 contracting partial Or transferees:
(a) In -deeds: "The grantee herein.. covenants by
and for himself Or herself, hii or her hairs, executors, administrators and assigns, and all .persons'claiming under or through them, -.that there ,shall -be no di'acristination against .or segregation' of any peraon or group of -persons on account of race, color," creed; religion, sex, marital sta- tus, national origin_ .or ancestry` in the sale, lease, sub- leaar, . transfer, use, occupancy,. tenure or. enjoyment of the premises herein conveyed, 'nor -shell the grantee himself or herself, or any person claiming under or through him.or her, establish or permit i.ny such practice or practices of dis- criatination or segregation.with reference to the selection, location, number, use 'or occupancy: of'tenants, lassoes, subtenants, aublessies or vendeea in the premise= herein conveyed. The foregoing covenants shall run with the land;" (b) In leases: "The tenant herein covenants by
and for himself or herself, his or her he:.rs; executors, administrators and assigns, and allpersons claiming under pr through him' or her.; and this lease is made and accepted upon and subject to thee'following conditions:
'That there shall be.no.discrimination against or
segregation .of'any parson'or group of persona an account of race, color, creed, roli'gidri, silk, marital status, national origin. or ancestry, in the leasing, Subleasing, transfer- ring, use, occupancy, tenure or enjoyment of the premises •
0580D050.051/003
-13- 091389-14
Exhibit 2
CHB 9049,e1194
CONF IDSN I AL
herein leased, nor shall the tenant himself or herself, or s.xy person claiming under or through hie or her, establish or permit any .such practice or practices of discrimination 'or segregation with reference to the selection, location, number, use or oc'cupancy o•! tenants, lessees, subtenants, sublessees or vendtes in the preeisei herein leastd;'" and (c) .In contracts; "There shall be no dis-
crimination against or segregation of _any person or group of persons on account of race, color, creed, religion, stz, marital status, 'national origin or.ancestry in the sale, lease,.sublease, transfer, uSe, occupincy,.tenure or enjoy- ment of the, premises,. nor shall any party to -this contract, or ;ny'_ person. claming .under or through him or her, estab- lish or permit any_such practice' or practices of discrimina- tion .or segregation with reference 'to the selection, loca- tion, number, use or occupancy:. of tenants, lessees, sub- tenants, sublessees or vendee' of the land."
ARTICLE 5.
CONSTRUCTION ET TENANT
5.1 Duty to Construct.
Following the Effective. Date of this Lease, .Tenant
shall construct upon the Leased. Premises ''those' Improvements required to be constructed 'on', above, under and around the Leased Premises by the DDA,: this Lease end the .Scope of 'Development. 'he Improvements shall be 'constructed and"completed within the Limn period set = forth in the Schedule . of 'Performance, and in accordance with the terms and provisions of the DDA, this Lease," all applicable Covernmentatl RestrictionY,. the CC&Rs, the Site Plan, the Scope 'of 'evelopment, and all final'Plens for the Leased Premises which ere duly -Approved by Landlord and City.
Said Improvements are generally''depicted on the Site Plan at- tached hereto as Exhibit B.
5.2 Conditions to Construction of Improvements.
Before Tenant _begins construction of the Improvements
on the Leased Premises, and before any building materials are ,.delivered to the Leased. Premises' by Tenant or under Tenant's authority, and as a condition to Tenant's right -to proceed with the construction' of thoa• I>sprovements,.. Tenant shall have co -- rifled with all of the conditions set forth ire this Section 5.2,
5.2.1. Submission and Approval of Plans, Specifica-
-tions and Other'Requixed Hatters.
8y. the deadlines ' set forth _ in the, Schedule of Perfor- • mance, Tenant shall have submitted to. City..xnd Landlord and obtained their approval.of all submissions specified in the DDA and the Schedule of PerforMance, including .i11 Plans for the Improvements to be constructed on the Leased Premises.
05801)050.051/003 -14-
091389-14
Exhibit 2
227
CMS 9043 1195
CONFIDENTIAL
Any changes in such Plans or other submissions request- ed by Tenant must be acceptable to And approved by City and Land- lord, .in their sole discretion, as required under the DDA.
Landlord and City, as appropriate, -;hall .approve ox disapprove any propoied. changes to'the-Plans and any other aubnissio'ns by Tenant within thirty (30) days of their submission.
In the event of any disapproval, Landlord or•City shall inform Tenant in writing of the reasons for disapproval and .the required changes to the 'Plans or other- submissions and such Plans or other submissions shall' be revised in accordance with the procedures and by the times. required in Article 4 of the DDA. • 5.2.2. Builder's Risk and Other Insurance,
Prior to the Effective Date of this Lease, Tenant shall have obtained (and delivered insurance -certificates therefor to Landlord) for all insurance required under Article 11 of this Lease, inciuding'the "builder's risk" and worker's compensation insurance prescribed by Sections 11,3' and 11'.6 of this Lease in connection with any work on the Leased Premixes.
5.2.3. Ho Construction Before Notice; Notice of
Nonresponsibilit7.
Tenant shall have provided Landlord with written notice of the intended commencement' of construction of 'any issprovements or delivery of building materials to th* Leased Premises at least, ten (10) days prior to the earlier.. of Commencement of construc- tion under-, the Lease of those improvements 'or commencement of the delivery of those building -materials to the Leased Premises.
Landlord shall,_ at any and ..all times 'during the Tern of this Lease, have the right t� post ind_maintain on the Leased Premises and to.. record as 'required• by 'law any notice or notices of nonresponsib ility provided for by the mechanics' lien laws of the State of California, The work for which.said ten (10) days written notice is required shall include, in addition to actual construction work, tny,..site preparation work, installation of utilities, street construction or improvesaent, or any grading or filling of the.Leased Premises.
5.2.4 Completion of Improvements and Other Work;
Compliance With Law And.Quality.
Tenant represents and warrants that the Improvements on the .Leased Preseisei,' and all 'other construction thereon, when .undertaken, while in progress and,as-completed (i) will comply with 'a11 Governmental Rest'ric'tions'; ' including; without limita- tion, all 1awa and ordinances necessary to permit the lease and development of the Leased Premises pursuant to this Lease, (ii) Will be entirely .on thi. Lea'ied Presises and will not en- croach.upon the land of others' or .any easement or right-of-way, (iii) will be' consistent with all enforceable building 0580D050.051/003
-15- 091389-14
CM8 9043 1196
CONFIDENTIAL
Exhibit 2
228
restriction Iaws, whenever established, and will not violate any applicable use,' easement,. license, covenant, condition or re- striction, and (iv) will. comply in' -all respects with the final Plans approved. for .th.a Improvemetitx or such other work. All work performed on the Leased Praxises pursuant -to this Leese, or authorized by this Lease, .shall be done in a good workmanlike .manner .and only with materials of good -quality. The -Improvements and other construction work -undertaken 'on the.Letaed Premises shill be completed promptly and without delay. _Tenant specifi- cally agrees tha.t,.prior to coMmenCement-.of construction it will impose or take all steps, required by -Landlord to assure the timely implementation; at Tenant's sole expense, of all of the mitigating measures (the "Mitigating. Measures") set fo1•th as •Exhibit H. attached hereto. Tenant fcirther itrees to take all of the steps required by' Landlord -to -insure that the Mitigating 'Measures will continue to be `followed -and implemented throughout the Term.
5.3 Mechanic's, Materitlmtn's, �,ontractor's. or Sub-
contractor's Liens.
Subject to Tenant's right to .contest as hereinafter
provided, at all times during the . Terse 'of this _ Lease, Tenant shall keep the'-Lease.d 'Premises•, including all buildings. and improvements now or hereafter`locat*d on the Leased Premises, free and clear of OA- liens 'and 'claims of liens for -labor, ser- vice:, materials, supp1'ies; equipment'.ar other like matters performed on , or _furnished to the Leased Promise.i. Tenant shall (i) promptly. Pay..and::discharge; ,,or cause the'Leased-,Premises to be' released_ from, any such lien. or claim _cif "lien, or, if Tenant decides to. content said lien, (ii) -furnish Landlord such bond as may be required by lam to free the Leaie.d Premises from the ,affect of such a lien and to secure Landlord against payment of such lien.
Should Tenant fail to pay and discharge, or cause the
Leased Premises to be released . from any such lien or claim of lien or to provide a.bond as permitted hereunder within fifteen (15) days after such lien or 'claiac. of. lien 'arises, _Landlord stay pays -adjust, compromise and discharge any such lien or claim of lien on such teams 'artdin such Manner as Landlord may deers appro- priate. In such event., , Tenannt shill, on or' before the first day of the next calendar month following any' such payment by Land- lord;.reimburse Landlord for the -full & ount..:o paid by Landlord, including, any actual attorneys' fees or other .costs expended by Landlord, together with'interait thereon at the Default Rata from the date 'of payment by Landlord to the _date . of Tenant's reim- bursaaint of Landlord, and such, amount shall constitute addition- • al rentt-end become' a part of Tenant's obligation to pay Rent hereunder.
On completion of any work of improvement during the
Terns, Tenant shall file or cause to be filed a notice of 0580D050.051/003
Exhibit 2
-16-
CM$ 9043 1197
CONF2 ENTIAL
091389-14
completion. Tenant hereby appointi_L:ndlord as Tenant's attor- ney -in -fact to file the notice of 'completion on Tenant's failure to do to, upon ten (10) day* .nootice from Landlord, after the work of .improvement has bean substantially completed; provided, that Landlord shill not be obli*aced : to file such a• notice of co'rssple- tion and the failure. of -Landlord to file that notice :hall not ekcut* the failure of Tenant to discharge its obligation to file said notice of completion.
5,4 Alterations, Modifications. or Replacements of
-Improvements; A11 ' Ltork on .Written Contract L Ap .
proval of General 'Contractor; Performance and
Payment Bond.
Following completion of all Improvements on the Leased
Premise's pursuant to the DDA`; .this_ Le&ss,' .a11 Plans, the Scope of Development and the Schedule of Perfo:rmance,_ Tenant shall not cause or. permit . any .denialition, removal, alteration, modifica- tion, replacement or addition .(coll,ectively, "Change") to. the Ictproveme.nts .on .the Leased Preraise1< during. the •Ter* unless Tenant secures the 'prior, written' appro.vtl .of Landlord to such Change, and the .Landlord's written approva1";of - all 'plans and specifica- tions therefor, -which approval 41.411 'not bi unreasonably with- held. .It shall'not'be`unreasonab;_e for Landlord to Withhold'its approval if the proposed Change wi11;:-fn Landlord's opinion, (i) result in a reduction in the Rent received by Landlord fro* the Leased Prerdises, or (ii)' result 'iri a -reduction in the value of the' Leased Premises or'th, Landlord's_ interest therein, or (iii) - ,result in.a reduction of the revenues derived by the Landes lord and the City from the Leased' Premises, or (iv) involve a change in the use of'the.Leiaed Premises. Any such approved Change shall-be.commenced-:and core feted in accordance with all of the requirements imposed -in connection_ with construction of the initial Improvements in Sections 5,2 —and antd 5.3 of this Leas*, and any such Change shan't:), Commenced and completed in accordance with the plans and specifications approved therefor.
All work. required in. connection with any Changes to any Improvements, including any-,siti preparation, landscaping or utility installation, as.w*ll:as actual construction work on said Improvements,. or any other -construction Work performed at any time on the Leased Premises; shall be perforated only by competent and financially_ responsible_ contractors, - duly, licensed as such under the laws'of the State of California, and Shall. be performed pursuant to written contracts with such contractors.
For all Changes to .be performed on the_ Leased Premises, Tenant .shall furniih tandlo-td 'with a true copy of Tenant's con- tract' _ with. thi general- contractor p*rforsiins such Changes and obtain Landlord's approval o_f that co;it,tactor and the contract. .Said''construction contract shall .be a maximum cost contract obligating the contractor 'thereunder- to complete the described changes for a -specified price, subject to reasonable adjustment 05800050.051/003
17- 091389-14
Exhibit 2
230
Ci1B 9043 1198
CONFIDENTIAL
far certain customary exceptions such as change orders or other .like tatters. The construction contract shall further obligate a reputable and financially rt sponsible contractor, who is fully bonded and licensed in California;- and. who has experience in cocipleting the type of improvements conteapisred- oy the Changes, to commence and complete the Changes. Said contract shall give Landlord the right but not the obligation: to assume Tenant's 'obligations and rights under that contract if Tenant should default;.provided,.that such right_to assume that•contract shall -be .sub,ject to the right, if any,:of a "Lender" under s, "Leasehold tortgage (as those terns are' defined in Section 7.1) financing the construction of such:improvements to in assignment of said contract. Prior to the commencement of. any. changes to he per- _ formed on -the Lased Premises, Tenant shall f,urniih Landlord with a true copy of and obtain Landlord's approval Of Tenant's Lease- hold Mortgage, financing- the construction of .such Changes, which sha/1 comply with Section -7:2, and which Shill. be in an amount not leas than (i) the amount . cf the contract With the general contractor performing such Changes., plus (ii) an amount equal to all consultant _and loan fees, "points," commissions, charges, furnishings, fixtures,' taxes, -:interest, start-up and other costs and .expenses. of 'developing and coarpliting such Changes, less (iii) the amount of Developer's- equity'ccntribution to the cost of constructing such Changes. In connection with any Changes, and before construction thereof commences, Tenant Shall furnish -Landlord with a perfor- -mance bond In an amount riot less -than -One' hundred percent (100%) of "the anticipated cost...of. such -construction work on the Leased Premises_, and' a payment bond.. guaranteeing _ the completion of the improvements free from liens of materialMeri, contractors, subcon- tractors, mechanics, laborers, and Other similar liens. Said -bonds shall l be boridi of'a -responsible surety -company, licensed to do business in California with a financial, strength and credit rating reasonably acceptable to Landlord, and shall remain in effect until the entire cost of the work has been paid in full and the new improvements have been insured as'provided in this Lease. Any such bonds Shall be in a form reasonably satisfactory to Landlord.
5.5 Ownership Of Improvements.
Any and. all Improvements erected on the Leased Premises as permitted by this Lease, as well as any and all alterations or additions thereto or any -other improvements or fixtures on the Leaned Premises shall-bo ownsd.by Tenant until the expiration or sooner, .termination of,this'Lease;'provided, Tenant shall not waste :or destroy any,of.. the "above improvements or Change any improvements on the Leased ?resides', ixcept.. as permitted by this Lease. Upon the expiration or sooner'termination of this Lease, all Improvements described above -:and all alterations, additions or. improvements thereto (except furniture and trade fixtures) that are made to or placed on the Leased Premises by Tenant or 0580D050.051/003
-18- 091389-14
CMB 9043 1199
Exhibit EIDENT IAL
231
any other person shall be conaidered part of the real praperty.of the Lased Premise! and shall rami_in .on the Leased Premises and become the .property of Landlord: . Except is otherwise expressly provided in this Lease, said..i nlo 's
eprove�aents ihall_beec�e Landlord's
property free',and clear'of any and all" rights to possession and all claime to or against them by Tenant or any third 'person or entity, and'Tenant shall 'indemnify, defend and hold Landlord, City - and -their. Representatives 'harmless against all Losses and Liabilities Arising front such claims.
5.6 Certificate of Completion.
Promptly after completion by Tenant of all the I
ve-
rents to be constructed' on the Leiled Preaiiis pursuant to othe DDA and this Lease,. Landlord shall furnish Tenant with a Certi- ficate of Completion for.the Leafed Premises in accordance with the'terSis and provisions of the DDA. -
5.7 Development Loam
In order to induce Tenant and. the developer under the
DDA. (°'Developer") to develop .the size and qualityof the Shopping Center desired: by- Landlord, .Landlord ;grace to lend Tenant 'and Devcloper.an amount (th'e "Agency's. -Loan°
) Nine Hundred Thousand Dollars over e equal to' "the fxcess of the
".Governmental , Grant" :described in. Sect ion 5.7.6 below and)(ii) the "Agency/City Offiite 'Expenditures" described in 5.7.7 below, on the following temps:.and- conditions:
5.7.1. Disbursement Procedures.
The Agency's Loan shall be disbursed at the time of and applied.toward the last direct,_out-of-pocket hard construction cost's incurred' by Tenant with . respect to the_ Improvements upon the Leased Premises: .The Agency's Loan shill 'be disbursed in accordance with -the disbursement procedures for the construction loan ("Construction Loan") described in Section 4.4.1 of the'DDA, as the construction coats to which the Agency's Loan is applica- ble are'incurred; provided that such disbursements procedures are determined adequate by Landlord and its- legal, counsel, in their reasonable discretion. If those disbursement
.considered by Landlord and its legal counsel to procedures are .protection for .the interests. of Landlord, or irof Develpevide 9r adequate Tenant funds the construction of 'th'e Icxpreve_ r tints upon the Leased Premises solely with an equity contribution in the ,canner provid- ed fare .iii .Section 4..4.1 of -the DDA, then the Agency ° s Loan shall be .disburste.d in accordance. With reasonable -_and
ry
_procedures_ , employed 'by established institution 1 le dersma in connection with construction loans. made by such lenders. 0580DD50.051/003
-19- 09133914
Exhibit 2
CCONFIDENTTAL
5.7.2. Interest Rate and Ftymsnt;.
. Agency's Loan (including_ any partial -disbursement
,thereof) shall bear interest from the date of disbursement until the date of repayment at the rate'of six percent (61) per.annum, compounded Annually. ntil the entire outstanding balance of the Agency's Loan, including all accrue: nter,ts ereon, s r d in full, the Developer,' Tenant, and their respective successors and assigns, shall be jointly and severally responsible for. payment to the Agency, within tern (10) days after occurrence of an event giving rise to the'"Net Sale Proceeds" or "Het Refinanc- ing Proceeds" ' (as defined below) , of an ' amount equal to fifteen percent (15%) of such "Het Sale Proceeds" or "Net Refinancing .Proceeds," as applicable.
5.7.3. Definitions.
As used in this Section 5.7, the following terms shall
have the meanings set forth below:
�o .(a) Net. Sale Proceeds. The term "Net Sale Pro-
ceeds shall mean: (1).the "Cross'Proceids" received from any* voluntary or involuntary- sax.e,7 tranifer-, assignment, sublease, license,.concession;.,conveyance_or other disposi- tion of 'the. Leased .Premises oz any part thereof or any direct , or _indirect beneficial ' iritereit therein, .including, without_ limitation,_ a.ny conveyance is.* result of or in lieu of._condemnation, any Transfer -by Tenant of all or any por- tion of its.ri_ghts under or interest in. this Lease, the Leased Premises Or the..'Improvements thereon, Any Transfer ,f the •0wnership and/or Control of .Tenant, ' and .Any foreclosure of Tenant's intere!t in the,' Leased 'Premise=, wfietfier by judicial Tra`c`es:, exercise of power of sileTbr~•any-assigrr- as merit al- transfer -in lieu of .foraCZosure`deother proceeding -111 he nature- thereof-tbut`excludina. _stindard subleases -or ground -.leases w is are fob-:-.accupanc.r purposes only, and the granting.., -of a security interest in connection with the creation of 'the' Construction Loan or Permanent Loan
permitted by this Lta and EFTA) (thiAbove matters are
hereinafter collectively referred' to as a "Sale of the Leased Prearises") or from. the recovery of any damages or other compensation from any third -party for or on account of any of the following with respect to the Leased Premises or any of the Improvements:: any loss, damage or injury to the Leased PreMise_s or the Impravereents; any failure of title or -other defect or 'impairment of title; any loss of or
restriction on' use,.- operation or- occupancy; and any diminution in 'value;' including ,without: limitation with respect to any of :the foregoing, recoveries under any
property _damage .insurance policias (excluding rental or business interruption inaurence)f. under Any judgments or awards made by my court, arbitrator or other.authority, and under any indemnities'or ;Cher su*s paid under any leases or 05800050.031/003
'20- 091359-14
Exhibit 2
233
CMB 9043 1201
CONFIDENTIAL
other agreements relating to the Leased Premises (such
events are hereinafter _collectively referred to as a
"Recovery"); (2)-re.ducad by -the sum of the "Approved
Deductions" (as hereinafter defined) related to the Leased Premises or the applicable"portion thereof ply's -the "Closing Costa" (as hereinafter defined). Notwithstanding anything above which is or appears to be to the 'contrary, "Met Sale Proceeds" can' never b. 1.11'than zero. A "Sale of the
Leased Pre liar shall al�ao be deemed to have occurred upon any transfer Which was .motivated by-the.purpose of, which has- the effect of, or:which is intended to avoid the
payments contemplated by this Section 5.7.
(b) Gross Proceeds._ The teak "Gross Proceeds"
shall mean,: In the: event of a Sale of th_e Leased Premises, the gross proceeds of whatever. fora or- nature. (including .without liaiitatio.n cash, the ' autstanding balance of any financing then encumbering .the ' .t eased : Premises Which will remain as a Tien-.on'the Leased Prexises•following such Sale, and the fair market' value df non.:_eash.:.consideretion r received in -lieu 'of cashr including -thi. present value of ny 1 promissory note received as part- of :the 'proceeds of such Sale) payable directly: or indirectly,to or for the benefit or account of Tenant or `Developer, or - ariy Affiliate of Tenant or Developer, "Cr ..of any cons'titunt: partners of Tenant' or Developer, and 'including with respect -to a condem- nation or _taking .i,n eminent domain of any. part of the Leased Premises or' any ;interest therein., or i conveyance in lieu thereof,- the .,entire condemnation award or compensation payable.' in cc'r.nection -with such__ taking -or 'conveyance (in- cluding without Limitation any aaaunts attributable to the value -of any unexpired lees. which are, otherwise payable to an Affiliate of ,Tenant or..Developer or for any- constituent partner of .Tenant or Developer).; or (2).in the event of a Recovery, the gross` proceeds of whatever• fora or nature received by Tenant or Developer or an Affiliate of Tenant or Developer, or the agents or mployees of Tenant or Developer or of an Affiliate of Tenant or Developer, from such Recov- ery. If it is nicessary,to determine the fair market value of any non -cash consideration in. connection with a Sale of the Leased_premiseit and if Landlord and Tenant ire unable to agree upon the fair 'market value of such non -cash consid- eration sri.thin ten (10) . days. s following the date of such Sale, than the fair Market value of such".non-cash considera- tion shall be deterrined.by'an independent certified public accountant acceptable 'to .troth parties, and either party may petitioa,the Superior Court of Los Angeles County to appoint such an accountant.. The. ' fees of "'such accountant shall be shared equally by Landlord and Tenant.
(c) Approved Deductions. .The term "Approved
Deductions" -shall mean:, (1) In•the event of a Sale of the Leased Premises,, the sum of the outstanding. principal 0580D050.031/003
-21- - 091389-14
CMH 9043 1202
EA0bikaIDENTIAL
234
balance of any then existing financing secured by the Leased Pre isr sea whether or not_assuated or a off; and (2) in the event of s Recovery, the reasonable documented out-of-pocket Costs incurred in the repairing,. restoring or -replacing of the damage to or destruction of the -Leased Praxises or of remedying such' other lois, damage or injury to the extent such costs are actually incurred, excluding any "Ineligible Deductions"'(as hereinafter defined) with respect thereto.
In the event of a Sale of the Leased Precaises.involving less than all of the Leased Pre ises"or Tenant's interest therein, or less than all -of "Tenant's Ownership and/or Control, the Approved Deductions shall be reduced propor- tiona/ly to the percentage of thae portion of the Leased Praxises or the' 'interest' in 'th. Leased' Premises or the Tenant .which ii.the subject of the Sale,. which amount shall be.deterasined and allocated on a fair anal equitable basis by Landlord.'and Tenant in accordance with the intent of the Parties set'forth above, or upon their failure to agree upon. such allocation' within ten (10) days after any Sala of the Leased _Preatis'es- requiring .that .allocation, by judicial reference . in .accordance with Section 638 et seq. of the California Code of Civil Procedure.
(d)- Closing Costs. "Closing Costs" shall mein:
(1) In the case of a Sale of the Leased
Premises, reasonable, documented out-of-pocket broker-
age_commissions payable; to. a third -party which is not an Affiliate of.Tenant 'or a constituent partner of
Tenant as, s result of the Sale, provided that such
commissions Shall -not in any _event exceed four percent (4%) of the sales price, costs of .title insurance
premiums, docuetentary stamp taxes, escrow fees and
recording charges, reasonable attorneys' fees and
costs,'ind other customary, reasonable and documented
costs, in each cage actually paid or payable by Tenant
in connection with the Sala of the Leased Premises, but excluding any foreign, U.S., state or local income
taxes, franchise taxes or other taxes based on income;
.or
(2) in the event of a Recovery, all
reasonable, documented cut -of -pocket costs incurred by Tenant in obtaining such Recovery,_ including without
liirtitation court costa and reasonable Lttorneya' fees and costs.
(e) Ineligible Deductions. As used herein, the
terms."Iriellgible Deduction="*shall mean: With respect to costs incurred 'for repair,.restvration or replacement fog- losring' any damage, destruction or lots, the asum of (i) the amounts, if any; reimbursed by any lessee of the Leased 0580D030.051/003 -22-
091389-14
Exhibit 2
CMS 9043 1203
CONFID TIAL
Premises or any other Person (excluding any sums included as the gross proceeds of such .Recovery), plus (ii) the portion of such costs, if any, which are paid or payable to or for the account or b.nefit of any Affiliate of Tp:;ant or Devel- oper or of a.n7..constituent ' partner of Tenant or Developer and Which are in excess of the costs which would be reason_ ably payable for the same or . squivalent work, materials or services in an arms' length transactions between unrelated parties in the arel..
(f) Determination of Fair Market Value. At any
time when it shall be necessary to_..determine the fair market value of the Leased Premises under this Section, Tenant and Landlord may by written agreement datermini the fair market value, provided that if Tenant.end Landlord. are unwilling or unable to make much a determination within thirty (30) days fter .Landlord' receives notice- of , the' occurrence of any event r.equiring the determination of fair market value, the Landlord and Tenant shall iubMit`such dispute to arbitra- tion, which arbitration shall be performed by appraisers in accordance with the procedures hereinafter described in Section 16.19.
•
(g) Landlord Not Responsible. If, at any time it
is ...calculated,, the .Net Sales , Proceeds shall. be a negative amount, Landlord . shaI1 in -no Wei tla. liab'1e..far Such amount and there shall be no deduction from Or offset against Rent or any subsequently calculated Net Sale Proceeds.
(h) Refinancing Net Refinancing.Proceeds. The
term "Refinancing". shall mean and.a "Refinancing" shall be deemed to lhave 'dccurred upon the creation of a `loan secured in whole or In part_ by an Encumbranct on this Lease on the Leased Premises, r any -interest therein. The term "Net Refinancing , a
Proceeds" shall mean (i) the gross .principal
amount of any disbursed loan(s) which is. secured in whole or in part by the .Leased Premises ai of the data such Net Refinancing Proceeds art being:raafsured; (ii) reduced by the sum of -(A) the amount of.tha outstanding. principal balance of any Leasehold -Sortiege 'repaid at the time of and from the pzoceeds of'the Refinancing giving rise to measurement of Net Refinancing Proceeds, to the extant the Leasehold Mort- gage. is. actually repaid, and (B) the actual, reasonable and documented out-of-pocket expenses of Such. Refinancing, including loan feel or points, escrow fees, title policy expenses, legal fees, survey fee's, recording fees, or other usual.and reasonable expenses of any such Refinancing. No deduction shall be allowed for 04 -Merit to any Affiliate of Tenant -or Devc1opsr iii connection with such Refinancing to .the 'extent such payments are in excess of.the reasonable :
Amount that. would)). paid for -the ;lie or equivalent servic- e1 in an'=rms' length transaction between unrelated parties. 0580D050.051/003
-23- 091389614
Exhibit 2
236
CHB 9043 1204
CONFIDENTIAL
3.7.4. D s utes Concernini Nst Sagas Prncaads and
Nit Refinancing Proceeds.
(a) Statements. With each payment- of Net Sale
Proceeds or Net _Refinancing Proceeds, Tenant shall furnish to Landlord a statement, certified by its managing general partner, which statement shall show a detailed breakdown of all items necesaar-y for the calculation of each component thereof, including, with respect to Net Sale Proceeds, the Cross Proceeds, Approved Deductions,' and Closing Coats used in calculating such Net -Sale Proceeds. Tenant shall keep and maintain et all times full and accurate books and
records adequate to correctly relict each such item, which 'books and records shall be kept by Tenant as required by Section 3.2.2.6 and shall -be available for Landlord's
inspection, copying and review as provided in such Sec- tion 3.2.2.6.
(b), Dispute Notification and Resolution. Land-
. lord may 'notify Tenant within ninety (90) days after Land- ' lord's receipt of it.3 share'of any'Net Sale Proceeds Or Net Refinincins-Proceeds'that the Landlord disputes any computa- tion or item contained : 'in any portion. of .'the statement submitted with such Proceeds._ In'th, event' Landlord. so notifies Tenant; the Partiei shall meet and attesrpt.in good. _ faith.to 'resolve Such disputed itamt within ten (10) days.
If the Parties, are unable to resolve .such- disputed items, the dispute shill be. submitted• to an .independent certified public .accountant for resolution which "resolution shall be' final.. Thee independent certified public'accountant shall be .selected in the manner provided for selection of such an accountant under Section.3.7.3(b) above. The fees of such account -ant Shall be paid, by. Landlord' unless such review" 'shall indicate that the'computation r esulted in in underpay- ment of the Net_Sale Proceeds cr the Refinancing Proceeds in an amount exceeding three percent (3Z) of the &mount actual- ly owing to Landlord, in which case Tenant shall pay all such fees. Tenant shall pay ,any additional amount due to Tenant within ten (10) days after the resolution of such dispute, together with interest thereon from the ,date such payment was originally dui until the date paid at the De- fault Rate.
3.7.3. Exercise of Option to Purchase.
If the "Opti.on to Purchase" the Leased Premises pursu- ant to,the provisions'of Section 16..19 is exercised prior to the repayment -of -the :outstanding balance.of the Agency's Loin (to- gether with all accrued •and Unpaid intaras.t thereon) , then such outstanding balance (together with all accrued and unpaid inter- est'thereon) shall become immediately due -end payable and shall be added to the "Purchase -Price" _determined pursuant to the 03800030.031/003
-24- 091389-14
CM8 9043 1205
ExlUiit 7IDEt4T IAL
237
provisions of Section 16.19 and paid in connection with the payment thereof.
5.7.6. Application of Governmental Grant.
Notwithsta_rding anything in this Lease to the contrary, the amount of the Agency.'s Loan to be disbursed to Develop- er/Tenant shall be reduced by the amount of any grant(s).("Gov- ernmental Grant"), if sny, which Landlord secures from any gov- ernmental body in connection with the implementation of the DDA, to the extent that such grant is to bit eppliid and is thereafter applied directly or indirectly .to' payment of the costs of con- structing sny of the offsite improvements for which Tenant is responsible under the terms of this Lease ("Developer's Offsite Improvements").
3.7.7. Landlord/City's Installation of Developer's
Offsite Improvements.
.In addition to the reduction provided for under Section
5.7.6 above, the amount of the Agency's Loan t_o be disbursed to Developer and Tenant .sha11 al:io -b4 reduced by the mount of any direct, .documented expenditures -(the "Offsite Expenditures") Landlord or City may'.incur in designing, constructing, engineer- ing' or- installing ariy of the 'Developer's Offrite Improvements, It is currently contemplated bay the Parties that, _at the least, certain traffic control and signal modification improvements comprised within Developer's 0ffsite Improvements will be per- formed by the Landlord/City on behalf of Developer and Tenant.
ARTICLE 6. REPAIRS AND MAINTENANCE
6.1 Landlord's Nonresponsibility.
During the Term of this Lease, Landlord shall not be
required to maintain or wake any repairs or replacements of any nature or description' Whatsoever to the Leased Premises or the improvements thereon, Tenant hereby expressly waives the right to require Landlord to rixke any such repairs or to make any such repairs at the expense of Landlord as provided for in -any -statute or law in effect" at. the time of exacution of this Lease, or in any other statute or law which may hereafter be enacted.
6.2 Tenant's Duty to Maintain Premises.
Except as specifically otherwise provided for herein,
throughout the Terra of thii_Lease Tenant shall, at Tenant'.s sole cost' and expentse, maintain the Leased Premises 'and the improve- ments now or. hereafter located on the Leased Premises in first class candition and -repair ind,in accordance with (i) all spplt- cable- Governmental Reatricti-ona and (ii) all applicable rules, laws ,. ordinances , orders, and 'regulations of any insurance compa- ny insuring all or any part of the 'Leased. Premises or the 0380D050.0311003 -23-
091389-1G
Exhibit 2
CMS 9043 1206
CONF1DENTTa,
improvements. thereon or both, and Tenant shall make whatever re- pairs and replacements are required..by such enactments.
6.3 Repairz Destruction.
Tenant shall promptly and diligently repair, replace or restore ail dasaage . to or destruction of all or any part of the improvements .on .the Leased Premises resulting from any cause.
Said. repair, replacement or restoration • shill be commenced as soon' as reasonably possible, but in._no event later than ninety (90).days from_the date of such damage. or destruction, and shall thereifter be pursued to'completion with diligence. The cornple- bed work of repair, restoration, or replacement shall be equal in value,. quality, and use to the condition of the improvements before the event giving rise to such -work. . Landlord.shall not be required to _furnish any services or facilities- or to make any rep'airs'' or alterations of any kind in or on .the Leased Premises in connection with such work "by Tenant. Landlord -may elect to perform any obligation of Tenant Linder this Section.upon Tenant's failure or refusal to do'sc, following thirty.(30) days written notice. Such in. election by -Landlord to perform any obligation 'of Tenant under this Section ah'all..nat constitute a waiver of any right or remedy far Tenant' a, default, and :Tenant Shall -reimburse Landlord . for all expenditures' incurred' by Landlord tin .performing Tenant's `obl agate ons; .to=ether .with interest thereon • at the 'Default Rate from the date of disbursement by Landlord until the date . of repayment by Tenant. "' Tenant shall indemnify, defend, and hold Landlord and .City;: irtd their.. Representatives, harmless against all Lasses and Liabilities 'resulting from Land- lord',s performance. of Tenant's 'covenants. All such work of repair, replacement or'.reatoratiori performed by- Tenant shall comply with all - of the requirements imposed with respect to Changes to improvements sat forth in Section 5.4 of this Lease.
No deprivation, impairment, or Iimitation.of use resul- ting from ' any damage, destruction, event or work contemplated by this Section shall entitle Tenant to any 'offset, abatement, or reduction in Rent, nor to any termination or extension of the Term hereof.
ARTICLE 7. LEASEHOLD FINANCING
7.1 Definitions: Leasehold HortRaee. Lender.
mortg• The term "Leasehold Mortgage" .means any note and the age, deed of trust, .or other security instrument securing such note and constituting a. lien _ on. thy' estate created by this Leese. Thi Construction Loans) and. the _Permanent Loan(s) de- scribed in, Sections 4.4.1 and 4.4.2 of the DDA are included within, the definition of a Leasehold Mortgage and any reference to a- Leasehold Mortgage shall include i reference to such Con- struction Loan(s)and Permanent Loan(s). The terra "Lender" shall mean the owner and holder of the Leasehold Mortgage.
0580D050.051/003 -26-
091389-14
Exhibit 2
239
CMB 9043 1207
CONFTOFNTTro
7.2 Conditions To Obtaining Leasehold Mort e,
Notwithsttnding anything which is or appears to be to
the contrary in this Lease, Tenant shall not encumber the estate created by this Lease except as expressly provided in this Arti- cle 7.
Pursuant to Sections 4.4.1 and 4.4.2 of the DDA, and in accordance with _ requirementa'se.t forth therein, Tenant has obtained or will obtain- Construction Loan(s) and Permanent . Loan(s) for the purpose of financing construction of the Improve-' -rents upon the Leased Premises by.Tenant. .Prior to issuance of a Certificate of Completion for all.of thole Improvements, Tenant shell not -encumber the estate'created by this Lease by any other 'Encumbrance unless 'such Encumbrance is first approved in writing -by 'Landlord. .Tenant shall utilize the proceeds Of the Construc- tion Loan solely for 'payment of the "Development Costs" (as defined in Section 4.4 of the DDA).
Subsequent to issuance of a Certificate. Of Completion
_for. the Leased Premises, Tenant-•shall.haye the right to encumber the estate created .by this Lease: with any other Leasehold Mort- gage 'acceptable to Landlord; provided,.that such. Leasehoid Mort- gage shall comply with the following -terms, conditions and re- quirements:
(a) The Leasehold Mortgage shall provide that any
proceeds from fire and -extended coverage insurance shall be used for repair or reconstruction -of the leasehold improve- ments and not to repay all or a part of the Leasehold Mort- gage;
(b) The Leasehold Mortgage shall contain pro-
visions requiring .that i11 notices .of default under said-- Lease_hold Mortgage emit be sent'to Ltndlor.d and Tenant and' that Landlord shall have the right, brut sot the obli
to cure any default if Tintnt ails to do so; that neither, Landlord's right to cure any: default nor any exercise of such a' right -shall constitute an assumption of liability under the Leasehold Mortgage;
(c) Promptly upon the recording of the Leasehold
Mortgage, Tenant shall, at its.owrt expense, cause a copy of the Leasehold Mortgage to..be delivered to Landlord -and shall cause to be recorded in..the Office of the County Recorder of Lga Angeles County. a::written request executed and acknowl- edged by Landlord for a copy of all notices of default and all notices.of isle'under the Leasehold'Mortaage as provided by applicable 1atir. .Inclusion Of a, request for notice having the effect described above in the body of the recorded Leasehold Mortgage shall constitute compliance with this provision;
0580D050.051/003
-27- 091389-14
=MB 9043 1208.
'CONFIDENTIAL
Exhibit 2
240
(d) The Leasehold Mortgage shall be subordinate
to the Landlord's fee interest Tin the Leased _Premises and the Landlord's interest under -'this Lase, and shall not cover n yes in real property othtr-thr.n-the leasehold
.state created by this Lease; and
(s) The Leasehold Mortgage Shall not permit or
authorize, or be construed to. Permit or authorize, any Lender to devote the Leased premises. to_any uses, or to con- struct Any improvements. t'hereon;, -other ' than those uses and improvements provided for and authorized -by this Lease.
7.3 Lender's Rights.
During the continuance of any..Leasehold Mortgage per-
mitted by this.Lease'ind the DDA, including any Construction Loan or. Permanent Loin, and until Such time as the lien of any Lease- hold Mortgage has been extinguished:
(a) Landlord shall not agree to any mutual termi-
nation nor accept any surrender or termination of this
Lease, nor shall Landlord 'consent to any material amendment .or .modification of this Lease without the prior written consent of . Lender; ' provided; that the 'provisions of this subsection shall not apply if such —Cancellation or surrender is . th. result ' of action taken pursuant to. the provisions of the United State'. 'Bankruptcy Code, 11 U.S.C. 5101, Al saga (b) Hctwithstanding.that an Event of Default, as
defined .in Section 13 1 of this Lease,' shall have occurred, Landlord. shi11 not have a right to terminate this Lease unless (i) Landlord shall have given written notice of such Event of Defatilt to any Lender 'who has . requested such notice under. this.. provision and (-ii) Lender_ :hail have failed, within sixty' (60) dais after- service of such notice, to cure said Default provided, that if said Default concerns the payment' of Any tnenetar7r obligations of Tenant under this Lease, Lender shall remedy said Default, within twenty (20) days, after .service of such natic.. If the Default is such that it cannot reasanabl7 be cured, within said sixty (60) day period or ii.such that possession of the Leased Premises .is necessary to remedy the Default, Lender shell be allowed .a reasonable time after the. expiration of said sixty (60) day period within_ which to remedy such default if-(i) Lender . shall.have fully cured any default In the -payment of any -monetary obligations of Tenant.. under. this Lease within twenty (20) day! after ,notice of the Default and shall continua to . pay currently, such monetary obligations 'as And than .the same: are due, acid (ii) Lender shall have acquired Tenant's estate in the Leased Presiise:.-created hereby or commenced for.closure or- other appropriate proceedings in the nature thereof within'said sixty (60) day period and is diligently prosecuting my Such -proceedings to completion; 0580D050.051/003 ,
-28- 091389-14
Exhibit2 CMS 9b43 1209
CONE.IDENTIAL
(c) Any !vent of Default under this.Laase which
in the nature ther.sof.cinnot ba.'remedied by Lander shall be deeaed—to be remedied if (i) "within sixty (60) days after receiving ,written ,notice fro. 'L_-ndlord-setting forth the .nature. of .such (vent of Default, or prior thereto, Lender shill have acquired Tenant's estate in the Leased Premises created hereby or..sha11 have commenced foreclosure or other .appropriate proceedings in. the nature -thereof, (ii) Lender shall diligertly prosecute..any ."mush. proceedings to comple_ tion, (iii)_Lendar shall have fully cured any default in the payment of any monetary obligetions- of Tenant hereunder within twenty (20) days after notice_of the Event of Default and shall.thereafter continue to fiithfully perform all such monetary obligatioriy,' and (iv) after gaining possession of the_Leased Premises,. Lender perforas,all other obligations of Tenant hereunder as• and when 'the same are due;
(d) In the event Lender acquires Tenant's estate
in the Leased. Premises, LendWA 'assumptions of Tenant's obligations end -liabilities hereunder -shall continue only far the period 'ot. 'time thit Lender remain;. Tenant hereunder. _During such period.of time.,_Lender.shal1, subject to perfor- mance of all of 'its ' ablfgitions `as -a :Tenant; be entitled to all of the righta:.cf 'a Tenant under this .Lease. Following Lender,'s-,acquisition of Tinintls interest in this Lease, the Lender'shall- be entitled'to ass ign- its' interest in this Lease; provided, that: it ahall,firit secure Landlord's prior written consent to.-.auch Transfer: .Landlord agrees not to unreasonably withhold its Consent -to: such. a.Trenefer so long as the proposed Transferee -is (i) financially responsible., (ii) of good standing.and. repute'- and (iii) able to demon- strate the capability to'asanage,developments.of the size and character of the—improvementslocated'an the Leased Premises _ (collectively the ."Transfer Criteria"). Landlord shall -approve or .disapprove any. Transferee -.proposed by Lender within fifteen (15) days of 'a request `made by Lender.for such approval or .disapproval and Lender's submission to Landlord of al -I financial. information considered necessary by Landlord to asae-ss whether the proposed Transferee meets the Transfer Criteria;
(e) On Lender's . acquisition of the Tenant's
.interest in this ..Lease by foreclosure„or assignment in lieu of foreclosure, Landlord shall._ -enter into a new Lease with -Lender' covering the' premises covered .by the foreclosed Lease if' Lender (1) gives notice of request within thirty (30) days after .foreclosure,- (2) pays all. costs resulting from the "prep&ration*'ind, execution of such. new Lesko, -and (3) -remedies all defaults of Tenant under this,Lease prior tv' execution of the new Lease. The new Leas. shall be for the remainder'bf the term of the farecloi3ed Lea:e, effective at the date of foreclOs'ure,'at the -rent and an the covenants agreements', conditions, provisions, restrictions, and
05800050.051/003
-29- - 091389-14
Exhibit 2
242
CMB 9043 1210
CONFIDENTIAL
iinitations contained in the foreclosed Laase. Upon
subsequent assignment by Lender of the new Lease, Lender shall be released frost all liability under the new Lease; and -
(f) If, it_..connection with tis..--fin,sgi-ing .by
Tenant of the i prove-Qentr`and this -Lease, Lender or Ten- ant's joint venture partner Approved by Landlord pursuant to Section 2.4 of the DDA requests an amendment of this Section
7.3 relating:to Linders rights, Landlord agrees not to
Unreasonably withhold its consent to any Such amendment; provided, that Landlord shall not be required to consent to to amendment or. addition. if it would impair Landlord's rights or..increase Landlord's obligations under this Lease, or if such amendment- or. iddit.ion would decrease the value of Landlord's interest :in this Leis: or the value of the Leased Premises..or Landlord's fee or reversionary interest therein.
7.4• Obligations of Construction Lender.
Notwithstanding anything. that is or appears to -be to
the contrary in this Lease, the Construction Loan lender ("Con- struct'fon Lender") sha1i-also be. Subject to the following obliga- tion and restriction... In -the' event of .a Default .by Tenant in. the construction of Any of .tree Irrrproversents- on" the Let'sed Premises, the_. Construction'.Lender's right- to cuvra such Default shall be conditioned upon the -Construction Lender's .xp.r'ess assumption, by written agreement aatiafactory.to Landlord, of Tenant's obliga- tions to Landlord to.- construct the Improvements in accordance with the DDA and this Lease.
7.3 Right of the Landlord to Cure Defaults Under
Encumbrances.
In the event of a default or breach by the Tenant under any Encumbrance, including -the- Construction Loan, Permanent Loan and any other Leasehold Mortgage affecting all -or. any portion of the Leased Premises' or Tenant's leasehold interest in the Leased Premises, the Landlord may, but is not obligated to, cure such default prior to the (i) completion of any foreclosure, (ii.) tertination of any lease,- or '(iii) completion of any pro- ceedings by which, such Encumbrance is -retained. or granted back.
In such event, Tenant. shall immediately reimburse Landlord for all costa and eacpenses- incurred by 'the' Landlord in curing the default, together with -interest thereon at the Default Rate'from the date of payment by Landlord until the date of repayment by Tenant, and such mount shall be i lien upon Tenant's leasehold interest in the Leased Premises pursuant to this Leased with power of sale.
•
-0801)050.051/003
-30- 091389-14
:MB 99i3�i6E 1211
ENTTAL
243
ARTICLE 8.
AS S IGNKENT )JD TEA 1s TEI
8.1. Assignment of Landlord's Interest in Leese or the
Leased ?remises'; Recoupuent Fee. It is anticipated that the Landlord may Transfer the Leased Premises, this Least, all or a portion of its interest .thereunder, and/or all or:a:portion of the payments that are payable to it by Tenant pursuant to this Lease. Tenant hereby consents and 'agrees to any.'such Transfer Which Landlord considers necessary' or. proper, regardless of the.' reason or reasons for which _Landlord makes Such Transfer and:regardless regardless of the entity that _i.i the Transferee thereunder. Tenant specifically agrees to such a Transfer to the San Antonio Services Corporation, Inc., a California non-profit corporation.
As additional consideration for its development oppor-
tunity under this Lease.; Tenant agrees to par a recoupment fee .("Recoupment Fee'.'). to Landlord's Transferee in lieu of the amount of any..payments due under . this Lease to the extent that Landlord Transfers or attempts. to Transfer such paiaents to another .person or entity but it ii _determined that .fueh. parson or entity is restricted by law from receiving any dr all af.such payments. In the 'event that Tenant ia. required -to par, the Recoup*ent .Fell, Tenant shall'receive a- credit `against the'rint due under this Lease in the 'amount of the Recoupment Fee paid to such other. person or entity.
8.2 Transfer of Beneficial Interest or Ownership of
Tenantz'Selectian Of Management Entity and Assign-
ment of Beneficial'Interest In or Ownership of
Entity', Subleases, License's or Concession Agree-
ments.
The restrictions contained in this Section 8.2 upon any Transfer to any Transferee are imposed because Tenant's qutlifi- cations are of particular concern to Landlord, and Landlord has entered into this -Lease in reliance upon Tenant's qualifications, skill, reputation and experience. Any purported Transfer which is prohibited,by this Section 8.2 or Section 7.2 shall be ipso facto null and vo_id., and no voluntary or'involuntary successor to any interest of Tenant under such a Transfer .shall acquire any rights pursuant to this Lease. These restrictions on Transfer shall be binding on any successors, heirs or permitted Transferee of Tenant.
8.2.1. Transfer of the. Lease, the Leased Premises,
or the Improvements to be Constructed -There-
on.
Except as otherwise provided in this Lease or .the DDA, prior to recordation of -a Certificate of Completion pursuant to 0380D050.051/003
-31" 091389-14
Exhibit 2
CMB 92843 1212
CONFIDENTIAL
Section 6.5 of the DDA anal issuance of Certificates of Occupancy for all the Improvements to be constructed on the Leased Premises in accordance with the DDA and ,this. Lease-, Tenant- shell not Transfer all or any portion of its rights under or -interest in this Lease, the Leased Premises, or the improvements constructed thereon without the Landlord's prior written consent, which consent may be granted or withheld in Landlord's sole discretion.
After recordation of a Certificate of,Completion pur*u.- ant to Section '6:S• of the DOA and issuance of Certificates or - Occupancy for of all the Improvements to be constructed on the Leased Premises in accordance.with the DDA and this Lease, Tenant shall not Transfer all or any portion of . the . Leased Premises, the :improvements constru ctedrthereon, or its rights under or interest .in this Leaa.e, without the prior written consent:- of. Landlord in each instance, which consent shall not be unreasonably withheld.
The failure of the Landlord to consent to.any proposed Transfer _ of- Tenant's rights -under or ihtereit iri the Lease, the Leased .Premises or the iaiprovernenta. constructed thereon- shall be deemed to be reasonable if the proposed Transferee is not (i) as finan- cially responsible . as Tenant was at the. time- of. its execution of this Lease, (ii) of good -standing and repute;. and (iii) as expo- .. rienced is -Tenant in managing:- developments of the size and char- . actor of. the Ie proverrrents to be `constructed on the Leased Praxis- es. :Landlord shall not be: required to consent to any Transfer if Tenant is then in Default 'under this Leash.
If Landlord approves an_ersignrnent of Tenant's rights
under or interest in the .Lease, the Leased Premises, or the improvements constructed thereon, is : condition to such approv- al:
(a) any assignee approved pursuant to this Sec-
tion shall expressly assume liability with Tenant under this Lease for all of Tenant's obligations; and
(b) notwithstanding any such assignment, Tenant
shall remain fully responsible to Landlord in accordance with the terms and provisions of this Lease.
8.2.2. Transfer of Ownership andfor Control of
Tenant; Retention of Management Entity and
Transfer of Interest Therein.
For purposes, of this Section 8.2.2, the term "Third
Party. shall. mean and include any person or entity that —WWI acq ed or hereafter' acquires any interest ..in Tenant, or any person or entiyty. that is a .Joint venturer 'or affiliate of. Tenant with respect to all ar any portion of the- Leased Prsmises and/or this Lease., or any. person or .entity that'is or becomes a limited 'and/or general partner of any such Joint venturer ar affiliate of Tenant with respect to all or any portion -of the Leased Premises and/or this Agreement.
05801)050.051/003
-32- 091389-14
Exhibit 2
245 CM° 9043 1213
CONFIDENTIAL
(a) Except as otherwise provided in the DDA,
prior to .recordation of a Certificate of Completion and . issuance of Certificate; of Occupancy for the_Improvements constructed on the Leased Premises in accordance with this Lease, Tenant shall not suffer or permit the Transfer of wore.than twen.t74-fiva'percent (25%) o1 its present Ownership and/or Control, .in the aggregate taking all Transfers into account on.* ,cumulative basis (but without double counting of successive Transfers by Third Parties of the same inter- est in the'Ownership,and/or Control of Tenant) nor allow the reMoval, change or 'repl.acetnent of ..its general partner(s) without the prior written consent of Landlord, which consent may be granted or withheld in the sole discretion of Land- lord.
(1) In the event that any Transferee of
Tenant is a corporation, -Partnership or trust, unless
the prior .Written 'Consent of- Landlord is obtained,
Tenant shall not suffer or' permit 'any .Transferee to
Transfer more than foty=nine (49i),of such Transfer-
ee's OwnerShip'and/or'Control existing at the time it
became s. Transferee of Tenant, in'the aggregate taking all Transfer's into account on.a cumulative basis.
(2) In the event that. any Third Party is a
corporation, partnership ' or ' trust, unless the prior written.. consent ,of Landlord is obtained,. Tenant shall not suffer or permit iny' Third 'Party. to Transfer more than. forty=sine (49Z),of such Third'Party's Ownership
and/or Control existing at the time it became a T'a—rd
Party, in the aggregate taking all Transfers into
account on a cumulative basis.
(b) After recordation ef_a Certificate of Comple-
tion pursuant to. Section 6.5'of.the DDA and the issuance o£ Certificates of Occupancy for all" of the Improvements to be constructed' on the Leased Premises in accordance with the DDA' and this Lease, Tenant shall not Transfer more than forty-nine percent _(49%) _of its present Ownership and/or Control; In _the aggregate taking all Transfers into account .on a cumulative basis, without. theprior written consent' of Landlord, Which consent shall not be unreasonably withheld. - (1,) In the event that any Transferee -of
?anent is a corporation, partnership, or trust, unless
the prior written consent of Landlord is obtained,
which consent shell not. ba unreasonably withheld,
Tenant shall not suffer or permit any Transferee to
',Transfer.wore than..forty-nini- percent (49%) of such Transferei3..ownership and/or control existing at the
'time it became a Transferee of Tenant; in the aggregate taking all Transfers into - account on a cumulative
basis.
0580D050.051/003
-33- 091389-14
CMS 9043 1214
E®Nb'1U ENTIAL
246
(2) In the event that any Third Party is a
corporation,. partnership or trust, unless the prior
written consent of Landlord:is obtained, which consent
shall not be unreasonably .withheld,.Teuent shall not
suffer or permit any, Third Party to. Transfer more than forty-nine percent (491) of. such Third Party's owner-
ahip...and/or control existing at the time it became a
Third Party, in the aggregate taking all Transfers into Account on a cumulative basis.
(3) The failure o#.the Landlord to consent
to any proposed Transfer of the Ownership and/or Con-
trol of Tenant shall be deemed _ to 'be reasonable ' if the proposed Transferee "is not.(i) as financially responsi-- b la as ..Tenant wal at the time'of Sty iiecution of this Lease, (ii) of good*stsnding and: reputes and (iii) as
experienced as ' Tenant' in managing developments of the size and character of the' i..provezaents located on the Leased Premises.
(e) Unless the prior written.consent of Landlord
is obtained,. Tenant .shall .not retain. ox authorize any person or entity_ to- perforr .any manasetaent. "and/or'.supervisory func- tions. ("rtanagemcrit Entity") . with re=pent .to .the development 'and/or operation cf the Leased Px'iiaiies or any of the Is- proveMents thereon.. :In .the ' event that. Tenant retains a Management Entity; Tenant'shall not pirmit isid.Management Entity .to assign any interest in or'rights under any agree- ment said tanagement Entity may have - concerning or relating ._.to the Ceased -Premises, nor shall Tenant ,permit said Manage- rrrent Entity, or any 'person or entity ,which is a stockholder of or a general or limited partner i_n'.iaid ?ianagement Enti- ty, or any .pers.on or entity which is a Joint venturer or affiliate of said Management Entity to.Transfer more than forty-nine percent (49x) 'of its present Ownership and/or Control in the aggregate, unless the prior written consent of Landlord is obtained.
8.2.3. Concessions. Licenses. and Subleases.
Notwithstanding anything above which is or appears to
be to the contrary, including. any restrictions. on .Transfer con- tained' in Section 8..Z of this Lease, subject to Landlord's prior written consent, Tenant Shall be entitled at any time to enter into licenses, subleases and concession agreements (collectively, "Subleases") concerning the Leased -Premises.
Any such Sublease: shall be in writing, and, fin" order to obtain.Landlord'i approval, Tenant Must submit copies of all written agreements proposed to be entered into between Tenant and 'the proposed licensee, concessionaire or.sublessee and any other documents relevant thereto, In addition, Tenant shall provide Landlord with that .information regarding the proposed licensee, 05801)050.051/003
-34- 091369-14
Exhibit2 CM8 W43 1215
CONFIDENTIAL_
concessionaire or sublessee ■et forth in Section 8.3, and any other information Landlord may reasonably request.
Each Sublease shall explicitly provide that it is
subject and subordinate .to. the provisions of this Lease; provided that, with Landlord's written consent and subject to Landlord's reasonable deterainLrion'that such provisions could not have an adverse ia-p'act. on Landlord's revenues under this Lease, or the __value of this Lease or the Leased Premises. to the Landlord, a Sublease'of :fly contiguous_ space containing not less than four thousand (4,000) squire feet or ' e .Sublease of any free-standing pad may. contain provisions, in a i≤oria satiafactor-y 'to Landlord and Lender.(s), providing. that such liceniae'Si.concessionaire's or, sublessee'a possession and use shall not be disturbed by Landlord or Lenders) so long as (i)' the licensee,'.concessionaire :or .sub.Ieisee performs the 'provisions. of the -Sublease and is not in default under the terms of the'Sub.leisa, and_(ii) the licens- ee, concessionaire or sublessee attcrns to Landlord or Lander(s) *ccording to their respective interests.
Each Sublease .shall further provide that any percentage. rents ,to be paid -to : the sublessor under the terms of that Sub- leas shall be based upoti
Sub-
lease .'the f gross proceedi of. the licensee's,
concessionaire'.x .ar sublesiee`i busirieises. and shad .be subject to.440i 'other provisions as ate necessary to ensura that the character of such'_perce,ntage rents will :not result in the Rent. due hereunder being treated as_unrelated•businass taxable income under Internal Rave nue Code 'Section 512. and any regulations applicable thereto, or under any successor statute or regula- tions.
Landlord's refusal to consent to a proposed Sublease or the proposed licensee,`. concessionaire. or sublessee thereunder shall bt considered to , b,e ' rea'sonabla if based on any of the following grounds (is determined by Landlord in its reasonable discretion):
(a) The proposed licensee, concessionaire or
sublessee does not, in Landlord's reasonable opinion, pos- sess adequate financial resources or adequate business
acumen and experience;
(b) The term .of the Sublease would extend beyond
the Terse of this Lease, or otherwise limit, restrict or impede Landlord's exercise of any of its rights and remedies hereunder;
(c) The proposed Sublease does not contain the
non-discrimination provisions set forth in Section 4.4
hereof;
(d) The proposed Sublease does not contain a
provision satisfactory to both- Landlord and all Lenders 0580D050.051/003 -35-
091389-14
Exhibit 2
248
CMS 9043 1216
CONFIDENTIAL
requiring the sublessee, concessionaire or licensee, in the •vent that Tenant Defaults under this Lessa, to attorn to Landlord..or Landlord's successors or assigns, or, in the event .of a foreclosure of the Ihsasehold Mortgage, to the Lender an that Leasehold Mortgage; -
(e) The execution of or operation under any rro-
pored Sublease would result in the violation of any applic- able Governmental Restrictions;
(f) The proposed. Sublease is not in writing or
does not provide that, after execution, it will be repro- duced and supplied to Landlord on demand;
(g) The proposed Sublease fails_to provide that
Tenant sha11 net accept, directly or indirectly, more than three (3) ..months prepaid rent from any licensee, conces- 'sionaire or sublessee,' not including any good faith bona -fide security deposit or other ec..iri.ty deposited with Tenant at the time of the execution of such Sublease;
(h) The proposed Subleass_f ails t9 include provi-
sions prohibiting_.its.Transfer.or the Transfer of any inter- est therein or --thereunder without- thi consent of Landlord, which consent shall not be unreasonably withheld;
(i) The proposed. Sublease fails to explicitly
provide that it. shall not be ascended or altered without Landlord's ,prior written consent;
(J) The proposed licensee, concessionaire or
sublessee would have ,a Materially adverse impact on the quality or ambience of the Shopping Center; or
(k) .The. proposed licensee, concessionaire or'
sublessee would have an 4dverse impact, on the Annual Per- centage -Rent and/or 'profits generated by the operation of the Shopping Center.
In the_ event.that Tenant submits a written request to
Landlord for its approval of (i) a Sublease, or (ii) a Transfer ,.pursuant to Section 8.2.3(h),'Llindlord shall approve or disap- p-rova said Sublease . or ._Transfer, . and the proposed sublessee, licensee or concessionaire thereunder, in 'writing within tan (10). working days after Tenant's written request.
8.3 Investigation of Proposed Transferee; Costs.
In the event that Tenant requests -Landlord's written
consent to —s, proposed Transfer pursusnt.to.Section 8.2 of this Lease; Tenant agrees to provide Landlord with such. information, including. financial atatements and tax returns, as Landlord may reasonably require; in order to evaluate the'solvency, financial 0580D050.051/003
-36- 091389-14
Eiil lit11D43 1217 249
CONFIDENTIAL
responsibility and relevant business acumen and experience of any proposed Transferee.
At the time of any request by Tens.nt for: consent to a Transfer pursuant to,S.ction 6.2, Tenant shall asa�e such request in writing and shall submit to Landlord (i) all binding agree- ments and documents evidencing and/or relating to the the circum- stances -surrounding such Transfer, and (ii),a certificate setting forth.representatlans and. warranties by Tenant and the Transferee to Landlord sufficient -to establish and insure that all require- ments. of Section 8.2 have been and will be met. With respect to a proposed assignment pursuant to Section 8.2.1 or 8.Z.2, Land- lord agrees" to make its decision on Tenant's request for consent to such an .assignment, as promptly as possible, and, in any event, not later than -thirty (30) day's .after Landlord receives the last of the items required by the preceding sentence.
Except as otherwise provided in Section 8.2, if Land-
lord consents to any Transfer "pursuant to that Section, such consent shall not be effective unless and until Tenant gives notice of the Transfer and a copy of any documents effecting and/.or.evidencing such Transfer to -Landlord, and unless and until any such.Transferee (other' than a sublessee, licensee or conces- sionaire) Assumes all of this —obligations and liabilities of Tenant under this Lease.
In order to enable Landlord to adequately investigate
the proposed Transferee's —qualifications, Tenant shall pay within five (5) days "of Landlard'i -written request therefor, all actual expenses incurred by -Landlord and City in connection with the investigation of the proposed Transferee, including attorneys' fees and costs and all consultant fees.
ARTICLE 9. TAXES AND IMPOSITIONS
9.1 Tenant To Pay Impositions.
In addition to all other payments required to be paid
under this Lease, Tenant'ahall pay any and all taxes, assess.- ments, and other charges of any .description including, without limitation, any..poasessory interest tax .and any "assessment or charge (collectively,,"Impos'itions") levied or assessed from the Effective Date until the termination of this Lease by any govern- mental agency or.entity on or against the Leased Premises or any . portion. thereof, or on "or against any interest in the Leased Prem.iais (including.__ the leasehold. interest created by this Lease), or "on -or against:. any .improvernents..or. other property in or on the Leased Premises.. The .timely payment of the above - Imposi- tions is a material terse of this 'Lease, and shall constitute an additional Rent obligation hereunder.
If, by law, any such Imposition is payable, or may, at
the option of Tenant be paid, in installments, Tenant may pay the O58ODO50.O51/O03
-37- 091389-14
Exhibit 2
CHB 40, 43 1218
CarIDENTIAL
sane, together with any accrued interest on the unpaid balance of such Imposition, in such installments as those installments respectively become due and before .any fine, penalty, interest, or cost may be added thereto for the nonpay!.ent o -f any such installment and interast.
9.2 Proration of Impositions.
All Impositions levied or assessed an or against the
r eased Premises during a .tax year (commencing on July 1 and ending on -June 30) Which is partially included within the terra of this' Lease shall be prorated, based on a 365 day year, between Landlord and Tenant as if Landlord Were a 'private party; so that Landlord shall be: responsible for the 'portion, if any, of such Imposition attributable to any period -prior to. the commencement or subsequent to..the expiration or termination of this Lease, and Tenant shall pay the portion thereof attributable to any period during" the. terra of this Lease. On service . of a w-r'itten request by Landlord, Tenant shall -promptly pay to Landlord Tenant's share of such Irnpoiitions paid -by Landlord -on Tenant's behalf.
9.3 Payment Before Delinquency.
Subject to Tenant°s right to contest under Section 9.4, any and.all Impositions andinstalIments of Impositions required to be paid by Tenant under- this. Lease shall be paid by Tenant prior_to.delinquency, and copies.of the official and original receipt for'the payment of such Imposition or installment thereof shall immediately be given to Landlord.
9.4 Contest of Imposition.
Tenant shall have the right to contest, oppose, or
object .to the amount or' validity of any Imposition levied on or assessed against .the _ Leaa_ed Premises or any' portion thereof and may -•in_ good faith diligently conduct any necessary proceeding to prevent or void or reduci the.same; provided, however, that the contest, opposition, or objection mutt be filed before the Impo- sition at which .it, is. directed become -I delinquent if such con- test,.opposition or objection is required to be grade or filed prior to payment of the'Imrporition being challenged, and written notice .of the' contest, opposition,, or.objection must be given to Landlord at least thirty.(_30) days before the date the Imposition becomes delinquent. = No such.contest, opposition, or objection shall bi continued or maintained. after the. data on which the Imposition at Which it is directed 'becomes delinquent unless Tenant has met one of the following conditions:
(a) Paid such Imposition under protest prior to
its becoming delinquent; or
(b) Posted .such bond or other security, satis-
factory to Landlord, as is necessary to protect Landlord and 0580D050.031/003
-38- 091389-14
Exhibit 2
251
CMS 9043 1219
CONFIDENT IAL
t
In-
position.
an.ed Praaisas fray any lien arising fro* such In -
Landlord shill not be required to .Join -in any ceedin. or contest brought by Tenant unless the provisionsopro- lew require that thn proceeding or. contest be brought by or sin _the- name• of Landlord or any -owner of .the Leased Premises. In thit case,, Landlord shall join in the proceeding or contest or permit it to be brought in Landlord's name but such action shall be without cost to Landlord. .
9.5 Tax Returns And Statements,
Tenant Shall, as between Landlord -and Tenant, have the duty of attending. t.o, preparing', making, and filing any state- ment, return, report, or other .instru ent required or permitted by law_ in connection with .the' determination, equalization, reduc- tion, or payment of any 'I position that is' or may be levied on or aeseised against the' Leased Premises, or any portion thereof, or any interest therein, or any'improvements or other property on the Leased Premises.
9.6 Indemnification.
Tenant shall.indemnify, defend and hold Landlord and
qty, and their Representatives_, and Landlord`s"'property (includ- ing the. Leased Premises and eny ' arprovesaents 'now or hereafter located on the. Leased Premises)_tree and hatmlese.frou any Losses and Liabilities resulting from, any Impositions. required 'by this Article to' be paid- by -Tenant., and fro rx tn.-interest, penalties, and other sums imposed -.thereon, And from any sale or other pro- ceeding to enforce collection of any such Imposition.
9.7 Payment By Landlord.
Should Tenant fail to pay within the time specified in
this Article any Impositions required by this Article to be paid by Tenant, Landlord'may, without notice to or demand on Tenant, pay,' discharge, or adjust such Imposition for the benefit of Tenant. In such event, Tenant shall, on or before the first day of the .next calendar month following any such payment'by Land- lord, reimburse Landlord for'the full amount incurred, by Landlord in so payin;i discharging, Or adjusting.' such Imposition, together with interest thereon at the Default.Rate from the date of pay- ment by Landlord until the date of repayment by Tenant, and the above:•obligation of Tenant:to reimburse Landlord shall be treated ae and become a part of Tenant's oblfgation to pay Rent under - this Lease.
580D050.051/003 _39-
091389-14
8 9043 122O
0nh' R TIAL
252
ARTICLE 10. UTILITY SE-F.vICE8
10.1 Tenant's Responsiblllt,.
During the term of thia -Leaee, Tenant shall pay
cause to be • paid,- and shall indemnify, defend and hold landlord and the property of Landlord harmless from all charges for water, sewage, gas, heat,' air conditioning, light, power, steam tale phone service and ill other services and utilities used, rendered or supplied to, on or in the Leased Premises.
10.2 Landlord Has No Responsibilit7.
Landlord sha11 not be required to furnish to Tenant it
any other occupant of the Leased Premises during the term of Le:se,.any water, sewage, ;gas, heat,' air conditionin this power, steam, telephone, -'or' any other utilities, quipment, labor, materials or services of any kind whatsoever.
ARTICLE 11. .INSURANCE
11.1 Fire and Extended Coverage Insurance.
Throughout , the term of this Lease. Tenant, at no_ cost or expanse to Landlord, shall -keep or -cause to .be kept, for the mutual benefit of 'Landlord and Tenant,. _ a policy of standard firs .insurance-, with': extended -coverage. and -vandalism and malicious mischief endorsements, insuring- a11' improvements located on or used 'in -connection .with and appurtenant to the Leased Premises.
The amount of insurance' required hereunder shill in no evert be less than one hundred percent (100x) of the full 'replacement coat of the improvements on the Leased Premises.
11.2 Cooperation in Obtaining Proceeds of Fire and .
Extended Coverage.
Landlord shall, at no cost pr expense to Landlord,
cooperate fully with Tenant to obtain the largest possible recov- ery under all policies required_ by Section 11.1._- The proceeds shall .be deemed to be held in -trust by the recipient to the extent of the uses and- purposes prescribed by this Least.
11.3 Builder's Risk and Worker's Compensation Insur-
ance.
Before commencement of any demolition or construction
work -on the Leased Premises, Tenant shall procure or cause to be procured; . arid shall maintain or ' caust to . be . maintained in force until' completion'. and acceptance of the work (i) "all risk:" builder's..risk insurance, including. Coverage for vandalism and malicious tiichief,_in a form and amount and with a company reasonably acceptable to.Lindlord, and (ii) worker's compensation insurance covering all persons' employed in connection with work 0580D050.031/003 -40-
091389-14
Exhibit 2
CI'18 9043 1221
CONFIDENTIAL
253
on the Leased Premises and with respect to r'ho-a death or bodily injury claims could be asserted against Landlord or the Leased Premises. Said buildtr's'risk insurance than cover improvements in place and all material and. equipment at the job site furnished under contract.
11.4 Public Liability Insurance.
Tenant, commencing on the Effective Data and continuing throughout, the Term hereof, shall. maintain,. at no cost or expense to Landlord, with a reputable and financially responsible insur- ance comptny acceptable to Landlord, for the mutual benefit of Landlord and Tenant, cc prehensive..broad form general public liability insurance against clairn3 and' liability for personal injury, death, or property damage :arising from- the' use, occu- pancy, misuse or condition of the Leased Premises, the improve- ments thereon, or any adjoining •areas or ways, which insurance shall provide combined .single` limit protection, of it least Five Million Dollars. ($3,b00,000) -far bodily'injury cr death to one or more persons, and at least One 'Million 'Dollars -($1,000,000) for property damage; provided, that, on the 'fifth anniversary of the Effective Ditt 'of this Lease and every five .(5) 'years thereafter ("Insurance Coverage Adjustment Dates"), the.'.above prescribed minimum coverages shall be increased to an'amount'equal to -the greater of (i) the sum -of the required insurancg limits specified above, plus the product of th'oee'r'equired coverages multiplied by the'percentage increase, if any, iii_the Consumer Price Index, all Urban- Consumers, 'for the 'Los Angeles -Long beach-Aneheisr Metropolitan area as published by the United Stites Department of Labor" between the Effective Date of'this Lease and the applicable Insurance Coverage Adjustment bate or (ii) the amounts
customarily carried by .developments of the size, character and nature of the development on the-Leaied Premises; provided,' that in no event shall the above 'described -minimum coverages be reduced.
11.5 Policy Form, Content And Insurer.
All insurance required by the provisions of this Lease
shall be carried only with responsible insurance companies li- censed to do business in this state that are acceptable to Land- lord.
. All such policies required by the provisions .of this:
Lease shall be nonassess'able and shall contain, language to the effect -that (i) any loss shill 'be payable notwithstanding any act or negligence of Landlord dr City:.that might,otherwise result in a forfeiture of the insurance, (ii) the insurer waives the right of, subrogation "against Landlord and City and against Landlord's .and City's: Representatives, (iii) -the policies ar*
noncontributing with any insurance that may be carriei
dby maLand
.lord or City,: (iv) the policies cannot be cancelled or materially changed except after thirty (30) days notice by. the insurer to 0380D050.051/003
-41- 091389-14
Exhibit 2
254
CMB 9043 1222
CONFIDENTIAL
Landlord and City and (v) neither Landlord nor City shall he liable for try premiums or assessments,
Tenant :haldeliverto Landlord Certificates ofinsurance o t e and deliver7 xecution Lease,
denting the insurance coverages' specified in this
Article.
Tenant shall thereafter deliver to Landlord certificates of insurance evidencing the insurance coverages required by this Article upon renewal of any.inaurance policy. Tenant may any insurance required under. this Lease' by 'blanket insurance covering the Leased Premises and any•o•ther location or locations, provided that the specific. policy'of blanket insurance proposed by Tenant .ii. reasonably- acceptable to, Landlord. Landlord'sreview of such policy' 'of blanket insurance shall be for the purpose of determining •if _ it provides. the 'coverages required by this Agreement and does not adversely affect Landlord's interest in th_e Leased Pre/Mises or its- 'rights •hirscinder. All policies shall name. Landlord • and its successors' and assigns and each Lender as an"additional insured as•their interests may appear and shall have deductibility lirait•s acceptable to Landlord, in its reasonable discretion.
11.6 Indemnification.
Tenant :hall indemnify, defend anal. hold Landlord, City .and their Representat•iveso.and:the property of Landlord and City, including the -Leased :premises and' an_ y improvements thereon, free and harmles.a froes` any and ell. 1.os4es and Liabilities • r*sulting from the use, occupancy"or enjoyment of the•Leased Premises by Tenant or any person thereon or holding, under Tenant arising from any cause. 'The aL.ve 'indemnification includes, without limi- tation, any Liabilities arisjn6 by reason of: .
(a) The death or injury of any person, including
Tenant or any person who. .is.an,employee or agent of Tenant, or damage to or destruction of any property, includin.any who ix an'empl prop- erty owned by Tenant or b t oee
or
agent of Tenant, f=ort any causeerson whatever while such person or.property is in•or or the Leased Premises or in any way connected with the Leased Premises or with any of,the im- provements or personal property on said premises;
Tenant or (b) The death or injury of any person, including ]' person Who is an employee or agent of Tenant,
or damage to. or desti-i,iction of any property, including arty owned. by Tenant or*an prop -
r person who is an employee or
agent "of Tenant, caused -or 'allegedly caused by .either (i) the condition of the Leased Premlaes or 'some improvement on -said premises, Or (ii)" .:o a act or•o*iission on the Leased Premises. by Tenant or'any person in, on, or about the Leased Premises with thi permission end consent of Tenant;
058013050.051/003 -42-
091389-14
MB 9043 1223
CE 1ffkhIEE N T I A L
255
(c) Any work performed on the Leased Premises
materials furnished to said premises at -the instance
request of Tenant or any parson or entity acting for or behalf of Tenant; or
(d) Tenant's failure to perform any provision of
this Lease or to cc ply with any applicable. Governmental Restriction.
or
or
on
(e) Tenant's failure to insure that any percent-
age rents 'received by Tenant or its subtenants from- any licensees, concessionaires, or sublessees of the Leased Premises are structured.- as neceasiry *to insure that the character of such percentage rents_will .not result in the Rent' due• hereunder being-- treated 'as' unrelated business taxable income under -Internal Revenue .Code Section 512 and any regulations applicable thereto, ar under any successor statute or regulations.
ARTICLE 12. CONDEMNATION
12.1 Definitions:- Award: Taking: Taking Date: Total
Taken Substantial T=kin Partin Taken Kotice
of Intended Takinm.
The term "Award" means the compensation paid for the
Taking, es hereinafter defined, whether by judgment, agreement or otherwise.
The term "Taking" means the taking or -damaging of , the Leased Premises or any_ portion thereof as the result of the exercise of the power of eminent -domain; or for any public or quasi -public use under .any statute. Taking 'also includes a voluntary. transfer :or conveyance td the condemning landlord or entity under threat -of' condemnation, in -avoidance of an exercise of eminent domain, or while condemnation'proceedings are pending.
The terse "Taking Date" means the later of (i) the date on which the condemning - authority takes actual physical pos- session of the Le ased,Premi=es or any portion thereof, as the case may be, or -(ii) the date 'on which the 'right to compensation and damages accrues under the law applicable to the Leased Prem- ises.
The terms "Total Taking" means the taking of the fee
titla,to i11 the Leased Premises -and the improvements thereon.
The test "Substantial Taking" means the taking•of so
much of the Leased Premises or improvements. thereon or both that .the conduct of Tenant's business on the Leased Premises would.be rendered economically infeasible.
0580D050.031/003
-43- 091389-14
Exhibit 2
CM8 9O43 1224
COt5IDENTIAL
The tern "Partial Taking" means any Taking of the fee
title that is not either a Total or:a Substantial Taking, The term "Notice of Intended Taking" means any notice
or notification on which a prudent person would rely as express- ing an existing intention of taking .as distinguished from a mere preliminary inquiry or proposal. .It includes but is not limited to the service of a condemnation summons and complaint on a party to this Lease.
12.2 Total or Substantial Taking of Leased Premises.
In the, event of a Total Taking; except for a Taking
temporary use. Tenant's obii-gition to pay rent _ shall terminate on; and Tenant's interest in the Leased-Preaiises shall terminate on. the,Taking Data.
In the event of a' Taking, except for a Taking for
temporary use, which Tenant.considers to be a Substantial Taking, Tenant may, by notice to Landlord.given.within sixty (60) days after Tenant receives Notice of Intended Taking, notify Landlord of -the Substantial. Taking: /f Tenant does -not so notify Land- lord, the Taking shall be deemed' :Partial .Taking. If Tenant gives such notice and, within term_ CIO).'day! following Tenant's notice, Landlord gives Tenant'notics dizputing Tenant s-conteno tion that there has been a Substantial Taking,. the .Parties shall .resolve their dispute before -a court Of ore _a court of competent_Jurisdiction or in such other, manner, as the parties rear mutually .agree. If Landlord does 'not dispute Tenant's contention this there has been a Substantial Taking, .or if it ii detemined,.by order of the Court, that theca has been a SubstantialTakins, then the Taking shall be. considered a Substantial Taking, and Tenant shall be 'entitled to. terminate this Lease effective. ai of_ the Taking Date if (i) Tenant deliveri possession: of 'th...Leised Premises to Landlord within thirty (30) days after determination that the _
Taking was a Substantial Taking, and (ii) Tenant was not in default on the Taking Date under this Lease and.has complied with all Les;se previsions concerning apportionment of. the Award. If these conditions are not met, the Taking shall be treated as a Partial Taking.
-12,3 Apportionment And Distribution of Award for Total Taking and Substantial Taking.
In the event of a Total Taking or Substantial Taking,
all 'sums, including damage:.and interest, awarded for the fee or the ' leasehold or both shall be distributed according to .the law - in effect at' the time of the Taking.
12.4 Partial Takinv, Abatement and Restoration.
If there is a Partial Taking of the Leased Premises,
except for a Taking for temporary use, the following shall apply. 0580D050.051/OO3
-44- 091389-14
Exhibit 2
257
CMS 9043 1225