AGENDA REPORT
Meeting Date: June 27, 2024
Item Number:
To: Board of Directors, The Parking Authority of the City of Beverly Hills From: Logan Phillippo, Real Property Development Manager Jonathan Gernes, Senior Management Analyst
Subject: APPROVAL OF LEASE MODIFICATION AGREEMENT (TENTH
AMENDMENT OF LEASE) BY AND BETWEEN THE PARKING
AUTHORITY OF THE CITY OF BEVERLY HILLS AND MARGARET
KEVORKIAN (DBA “BEVERLY CLEANERS”) AT 309 NORTH
CRESCENT DRIVE
Attachment: 1. Lease Modification Agreement (Tenth Amendment of Lease)
RECOMMENDATION
Staff recommends The Parking Authority Board of Directors approve the Lease Modification Agreement (Tenth Amendment of Lease) by and between The Parking Authority of the City of Beverly Hills and Margaret Kevorkian (DBA “Beverly Cleaners”) for the property located at 309 North Crescent Drive.
INTRODUCTION
The proposed amendment would extend the term of the lease by two years and increase the monthly rent beginning January 1, 2025.
DISCUSSION
The City entered into a lease agreement with Margaret Kevorkian’s predecessor-ininterest Iraj Aziz-Lavi at 309 North Crescent Drive in November 1983. The lease was subsequently assigned to Ms. Kevorkian in December 1988. Ms. Kevorkian operates Beverly Custom Cleaners, a dry cleaning and clothing alterations business.
The proposed Tenth Amendment of Lease provides the following key terms:
• Extension of the Term: The lease shall expire December 31, 2026; and • Base Rent: The monthly base rent shall be $3,302.83 beginning January 1, 2025.
Meeting Date: June 27, 2024
FISCAL IMPACT
The proposed lease amendment extends the term of the lease through December 31, 2026, and increases the rent payable from $3,175.80 to $3,302.83 per month beginning January 1, 2025. In total, $79,267.92 would be collected in base rent over the two-year extension, an increase of $3,048.72 over the prior two-year period.
There are no broker’s commissions associated with this lease amendment.
Ryan Gohlich,
Assistant City Manager
Approved By
Attachment 1
LEASE MODIFICATiON AGREEMENT (TENTH AMENDMENT OF LEASE)
THIS LEASE MODIFICATION AGREEMENT (TENTH AMENDMENT OF LEASE) (this “Agreement”) is dated as of , 2024 (the “Effective Date”), and is entered into by and between MARGARET KEVORKIAN (dba “Beverly Cleaners”) (“Lessee”), and THEPARKING AUTHORITY OF THE CITY OF BEVERLY HILLS, a California municipalcorporation, as successor-in-interest to the City of Beverly Hills (“Authority”).
RECITALS
A. The City of Beverly Hills (“City”) and Iraj Aziz-Lavi, as lessee, entered into that certain Lease dated November 1, 1983 (the “Original Lease”), for a portion ofthe building located at 309 North Crescent Drive, Beverly Hills, California (the “Premises”).
B. The Original Lease was subsequently modified by that certain Amendment dated June 5, 1984, executed by City and Iraj Aziz-Lavi (the “First Amendment”).
C. The lessee’s interest in the Original Lease (as modified by the First Amendment) was subsequently assigned pursuant to that certain Modification, Extension, Assignment, Assumption and Consent Agreement dated as of December 13, 1988, executed by City, IrajAziz-Lavi and Beverly Cleaners, Inc., as assignee (the “Second Amendment”).
D. The Original Lease (as modified by the First Amendment and the Second Amendment) was subsequently modified by that certain Modification and Extension Agreement dated as of December 7, 1993, executed by the City and Beverly Cleaners, Inc. (the “Third Amendment”).
E. The Original Lease, as amended by the First Amendment, Second Amendment and Third Amendment was then assigned to Lessee and modified by that certain Assignment, Assumption Consent and Modification Agreement dated March 18, 2004 recorded in the OfficialRecords of Los Angeles County as Document No. 041278642 (the “Fourth Amendment”) and a Lease Modification Agreement dated as of December 2, 2008 recorded in said Official Recordsas Document No. 20090038952 (the “Fifth Amendment”), a Lease Modification Agreementdated as ofNovember 16, 2010 recorded in said Official Records as Document No. 20110008259 (the “Sixth Amendment”), a Lease Modification Agreement dated August 20, 2013 recorded in the Official Records as Document 20131396685 (the “Seventh Amendment”),and a Lease Modification Agreement dated November 6, 2018 recorded in the Official Recordsas Document No. 20181236501 (“Eighth Amendment”); and a Lease Modification Agreementdated November 19, 2019 recorded in the Official Records as Document No. 20200115272 (“Ninth Amendment”). The Premises are described on Exhibit “A” to the Fourth Amendment.
F. The Original Lease, as modified and assigned pursuant to the First Amendment, the Second Amendment, the Third Amendment, the Fourth Amendment, the Fifth Amendment, the Sixth Amendment, the Seventh Amendment, the Eighth Amendment and the Ninth Amendment is hereinafter referred to as the “Lease.”
G. The Premises have been conveyed by the City to the Authority (subject to the Lease).
B0785-0001\2924667v1 .doc
H. Authority and Lessee desire to further extend the term ofthe Lease and modify certain other provisions of the Lease, all as more particularly provided herein.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing recitals and for other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the parties hereto agree as follows:
I. Monthly Rent. Commencing on January 1,2025, the monthly rent payable under the Lease shall be Three Thousand Three Hundred Two and 83/100 Dollars ($3,302.83) per month.
2. Extension of Term. The term ofthe Lease is hereby extended to December 31, 2026. Tenant shall have no right to further extend the term.
3. No Assignment or Subletting. Lessee shall not assign the Lease or sublet the Premises without the Authority’s prior written consent, in its sole and absolute discretion.
4. Waiver of Relocation Benefits. Lessee reaffirms that pursuant to Section 4 of the Ninth Amendment, Lessee shall take full responsibility for moving all personal and business assets, furnishings, fixtures, equipment and personal property, from the leased premises upon theexpiration of the Term or any earlier termination of the Lease pursuant to the terms hereof, and for any resulting loss of business goodwill and going out of business expenses (the “Relocation”). Lessor shall not have any obligation to provide assistance to Lessee in connection therewith under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. 4601 et seq.), if applicable, or under Title 1 , Division 7, Chapter 1 of theGovernment Code of the State of California (Section 7260 et seq.), or any similar and applicable local laws or regulations. In connection therewith, and to the fullest extent permitted by law,Lessee further agrees that, effective upon the expiration of the Term or any earlier termination of this Lease pursuant to the terms hereof Lessor shall be, and hereby is, fully and forever released from any and all claims and liabilities, whether direct or indirect, known or unknown, foreseen or unforeseen, that have arisen, or that may arise, in connection with the Relocation. By suchrelease, Lessee expressly waives the provisions of California Civil Code Section 1542 that provide:
“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THECREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXISTiN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE ANDTHAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTEDHIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.”Lessee understands that, by waiving these provisions, Lessee waives the right to make claims against Lessor for matters pertaining to the Relocation that are presently unknown or unanticipated.
-2-
B0785-0001\2924667v1 .doc
se’sInitials
/ . Estoppel. Lessee hereby represents and warrants the following to Authority as of the Effective Date:
5.1 Entire Agreement. The Lease has not been modified, supplemented or amended.
5.2 Security Deposit. Authority is holding Five Thousand Three Hundred Four Dollars ($5,304) as a security deposit in accordance with Section 5 of the SecondAmendment.
5.3 Default. Lessee has not given written notice to Authority of any dispute or default under the Lease and no event has occurred that, with the giving of notice, the passage of time or both, would constitute a default under the Lease.
6. Conflict. In the event of a conflict or inconsistency between the terms and conditions of the Lease and the terms and conditions ofthis Agreement, the terms and conditionsof this Agreement shall prevail and control.
7. Continuing Effect. Except as specifically modified hereby, the Lease shall remain unaffected and unchanged by reason of this Agreement. The Lease is ratified and affirmed by Lessee and remains in full force and effect as modified hereby.
8. Authority. Each party hereto represents and warrants to the other parties hereto that it has all requisite power and authority to execute and deliver, and to perform all of itsobligations under, this Agreement, and that nothing prohibits or restricts its right or ability toclose the transactions contemplated hereunder and carry out the terms hereof.
9. Attorneys’ Fees. In the event of any litigation between the parties hereto arising out of this Agreement, the losing party shall pay the prevailing party’s costs and expenses of such litigation, including, without limitation, reasonable attorneys’ fees.
10. Successors and Assigns. This Agreement shall be binding on and inure to the benefit of the parties hereto and their successors and assigns.
11. Governing Law. This Agreement shall be governed by and construed and enforced in accordance with the laws ofthe State of California.
12. Memorandum of Amendment of Lease. Upon its execution and delivery of this Agreement, Lessee shall concurrently execute and deliver a duly acknowledged counterpart of the Memorandum of Amendment of Lease in the form attached hereto as Exhibit “A”. The ExecutiveDirector of the Authority may execute said Memorandum on behalf of the Authority.
13. DocuSign. The parties may use DocuSign to execute and deliver this Agreement, but Lessee must deliver an executed original of the Memorandum of Amendment of Lease toAuthority, duly acknowledged, so that it can be executed and recorded by the Authority. -3-
B0785-0001\2924667v1 .doc
14. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which, together, shall constitute one and the sameinstrument.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year first above written.
LESSEE:
MARGA ET KEVORKIAN
AUTHORITY: THE PARKING AUTHORITY OF THE CITY OF
BEVERLY HILLSBy:
Lester J. Friedman, Chairperson
ATTEST:
Huma Ahmed, Secretary
APPROVED AS TO CONTENT:
Nancy Hunt-Coffey, Executive Director
APPROVED AS TO FORM:
Laurence S. Wiener, General Counsel
-4-
B0785-000 1\2924667v1 .doc
EXHIBIT “A”
FORM OF MEMORANDUM OF AMENDMENT OF LEASE
(Attached.)
-5-
B0785-000 I 2924667v1 .doc
-6-
B0785-0001\2924667v1.doc
RECORDING REQUESTED BY, AND
WHEN RECORDED MAIL TO:
The Parking Authority of the
City of Beverly Hills
Office of the City Manager
455 North Rexford Drive
Beverly Hills, California 90210
Attn: Secretary
(Space Above Line For Recorder’s Use)
Exempt from Recording Fees under California Government Code 27383.
MEMORANDUM OF TENTH AMENDMENT OF LEASE
THIS MEMORANDUM OF TENTH AMENDMENT OF LEASE (this “Memorandum”) is dated as of _______________, 2024, and is entered into by and between THE PARKING AUTHORITY OF THE CITY OF BEVERLY HILLS (“Landlord”), and MARGARET KEVORKIAN, an individual (“Tenant”).
R E C I T A L S
A. The City of Beverly Hills (“City”) and Iraj Aziz-Lavi, as lessee, entered into that certain Lease dated November 1, 1983 (the “Original Lease”), for a portion of the building located at 309 North Crescent Drive, Beverly Hills, California (the “Premises”).
B. The Original Lease was subsequently modified by that certain Amendment dated June 5, 1984, executed by City and Iraj Aziz-Lavi (the “First Amendment”).
C. The lessee’s interest in the Original Lease (as modified by the First Amendment) was subsequently assigned pursuant to that certain Modification, Extension, Assignment, Assumption and Consent Agreement dated as of December 13, 1988, executed by City, Iraj Aziz-Lavi and Beverly Cleaners, Inc., as assignee (the “Second Amendment”).
D. The Original Lease (as modified by the First Amendment and the Second Amendment) was subsequently modified by that certain Modification and Extension Agreement dated as of December 7, 1993, executed by the City and Beverly Cleaners, Inc. (the “Third Amendment”).
E. The Original Lease, as amended by the First Amendment, Second Amendment and Third Amendment was then assigned to Lessee and modified by that certain Assignment, Assumption Consent and Modification Agreement dated March 18, 2004 recorded in the Official Records of Los Angeles County as Document No. 041278642 (the “Fourth Amendment”) and a Lease Modification Agreement dated as of December 2, 2008 recorded in said Official Records as Document No. 20090038952 (the “Fifth Amendment”), a Lease Modification Agreement dated as of November 16, 2010 recorded in said Official Records as Document No. 20110008259 (the “Sixth Amendment”), a Lease Modification Agreement dated August 20, 2013 recorded in the Official Records as Document 20131396685 (the “Seventh Amendment”), -7-
B0785-0001\2924667v1.doc
and a Lease Modification Agreement dated November 6, 2018 recorded in the Official Records as Document No. 20181236501 (“Eighth Amendment”); and a Lease Modification Agreement dated November 19, 2019 recorded in the Official Records as Document No. 20200115272 (“Ninth Amendment”). The Premises are described on Exhibit “A” to the Fourth Amendment.
F. The Original Lease, as modified and assigned pursuant to the First Amendment, the Second Amendment, the Third Amendment, the Fourth Amendment, the Fifth Amendment, the Sixth Amendment, the Seventh Amendment, the Eighth Amendment and the Ninth Amendment is hereinafter referred to as the “Lease.”
G. The Premises have been conveyed by the City to the Authority (subject to the Lease).
H. Landlord and Tenant have entered into a Lease Modification Agreement (Tenth Amendment of Lease) (“Tenth Lease Amendment”) and consequently, Landlord and Tenant desire to further amend the Lease of record.
A G R E E M E N T
NOW, THEREFORE, Landlord and Tenant hereby amend the Lease to reflect that the Lease has been amended as set forth in the Tenth Lease Amendment, the terms of which are incorporated herein.
IN WITNESS WHEREOF, Landlord and Tenant have executed this Memorandum.
THE PARKING AUTHORITY OF THE
CITY OF BEVERLY HILLS
By: _________________________
Nancy Hunt-Coffey, Executive Director
________________________________
MARGARET KEVORKIAN
-8-
B0785-0001\2924667v1.doc
State of California )
County of ______________ )
On _________________________, before me,
,
(insert name and title of the officer)
Notary Public, personally appeared
, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
A notary public or other officer
completing this certificate verifies only
the identity of the individual who signed
the document to which this certificate is
attached, and not the truthfulness,
accuracy, or validity of that document.