AGENDA
ITEM
16 AGENDA
CALEXICO California ITEM
WHERE CALIFORNIA AND
16 CITY COUNCIL
AGENDA STAFF REPORT
DATE: October 7, 2026
TO: Mayor and City Council
APPROVED BY: Benjamin Martinez, City Manager
PREPARED BY: Laura Estrada, City Attorney < E
SUBJECT: Authorization for the City Manager to Execute an Addendum Extending the Existing Lease Agreement with the Mexican Consulate for a Period of One (1) Year.
Recommendation:
Authorize the City Manager to execute an addendum extending the current lease with the Mexican Consulate for one year.
Background:
On January 1, 2021, the City of Calexico and the Consulate of Mexico entered into a one-year agreement for the use of the property located at 408 Heber Avenue, Calexico, California. The agreement included an option for renewal for up to five additional one-year terms.
Under the terms of the lease, the Consulate of Mexico agreed to pay monthly rent of $5,507.00 for the duration of the lease.
The parties subsequently entered into an extension of the lease to allow the Consulate to continue occupying the property.
The Consulate has requested an additional one-year extension of the existing lease. The proposed extension would allow the Consulate to continue its operations at 408 Heber Avenue while the City and the Consulate evaluate and negotiate the terms for a new lease agreement.
Discussion and Analysis:
City Council authorization is required for the City Manager to execute an addendum extending the existing lease term.
The proposed one-year extension would provide continuity of occupancy for the Consulate of Mexico and allow the City and the Consulate.
All other terms and conditions of the existing lease would remain in effect unless specifically modified by the proposed Addendum.
Staff recommends that the City Council authorize the City Manager to execute the Addendum to the Commercial Lease Agreement.
Fiscal Impact:
The proposed lease extension will continue to generate rental revenue for the City in accordance with the terms of the existing lease.
Coordinated With:
City Manager
Attachment(s):
1. Commercial Lease Agreement 2021
2. Addendum to Commercial Lease agreement
2 ATTACHMENT NO.1
COPIA FIEL
DEL ORIGINAL
COMMERCIAL LEASE AGREEMENT
Pe rebease Agreement is intended to memorialize the terms of a Commercial Lease cale, ene been the CITY OF CALEXICO, represented by Miguel Figueros, City Manager (hereinafter referred to as "Landlord"') and the UNITED MEXICAN STATES, acting through its Consulate in Calexico, duly represented by the Consul, Ricardo Tarcisio Navarrete Montes de Oca (hereinafter referred to as "Tenant"'), to lease certain real property owned by the City of Calexico.
IT IS HEREBY AGREED THAT:
1. Lease Premises: Landlord and Tenant hereby agree that in consideration of terms, conditions and covenants herein contained, Tenant shall lease from Landlord that certain land generally located at 408 Heber Avenue, Calexico California (hereinafter referred to as "Premises") which was the previous City Hall for City of Calexico. A more specific description of these Premises is shown on the map attached hereto as Exhibit "A" attached hereto.
2 Purpose: It is intended by the parties that the Tenant use said Premises for the purpose of a Mexican Consulate. Using the Premises for any other purpose than that specified above, shall constitute a material breach of the terms of this Lease. Any use of the Premises that is unlawful, or is in the conflict with the Calexico Municipal Code, shall be a material breach of the terms of this Lease.
3. • Vienna Convention: According with the 29th Article of the Vienna Convention on Consular Relations the parties agree with the prerogative to place the Mexican Flag and Cónsul Titular National Emblem in a visible place.
4. Term: The term of this Lease is one (1) year from 01-01-2021 to 12-31-2021, which will be renewed automatically, unless otherwise notified 60 days Tarcisio Navarrete Montes de Oca before the expiration date. For up to 5 periods of one year, without increase for rent. Should Tenant wish to continue the Lease, the request must be presented to the Calexico City Council and approved by it before any extension will be effective and binding on the City of Calexico.
Rent: Tenant agrees to pay $5,507.00 (Five Thousand Five Hundred and Seven dollars 00/100) per month until expiration of the Lease Agreement. This rent payment shall be due on the tent day of each month.
: Tenant Leases Premises "As Is": Landlord makes no warranty, guarantee, or covenant including but not limited to covenants of title and quiet enjoyment, or averment of any nature concerning the condition of the Premises, including the physical condition thereof or any condition, which may affect the Premises. Property owner shall not be responsible for any loss, damage or cost, which may be incurred by Tenant because of any such condition or conditions. Tenant has inspected this Premises and agrees to lease the Premises "As Is"
7. Compliance with all City, State and Federal Laws: Tenant hereby agrees to comply with all City, County, State and Federal ordinances and statutes that are applicable to this Lease Agreement and the purposes outlined above.
& Licenses and Certification: Tenant will not conduct any business activity, nor offer any services without obtaining, and maintaining in current status at all times, all licensing /or certification as may be required by applicable Federal, State, and local authorities. Tenant will satisfy all of the requirements of the City of Calexico.
9. Assignment and Subletting: Tenant shall not sublet the Premises or any part thereof, nor assign this Lease or any rights therein, without first obtaining the written consent of the Landlord. Any sublease or assignment of this Lease without first obtaining the written consent of Landlord shall allow Landlord the option of canceling this Lease; however, Landlord's consent shall not be unreasonably withheld.
10. Liability of Landlord: Tenant agrees to save and hold harmless from any injury to person or damage to property arising out of or in connection with Tenant's occupancy, and/ or use of the Premises covered by this Lease. Tenant agrees to indemnify Landlord for all damage that may result to Landlord from Tenant's use of the Premises pursuant to this Lease Agreement.
Tenant agrees to save and hold Landlord harmless from any injury to person or damage to property excepting where the injury of damage is cause by the negligence or misconduct of Landlord.
11. Fire and Casualty Insurance: Tenant shall provide public liability insurance or its equivalent, for personal injury and / or property damage arising out of or in connection with Tenant's occupancy of the Premises. The Tenant shall provide the Landlord with proof satisfactory to the City Manager, that Tenant will hold Landlord harmiess and will defend Landlord with respect to any claims that may arise in connection with the leased Premises.
12. Public Liability Insurance: Tenant shall provide public liability insurance or its equivalent, for personal injury and / or property damage arising out of or in connection with Tenant's occupancy of the Premises. The Tenant shall provide the Landlord with proof satisfactory to the City Manager, that Tenant will hold Landlord harmless and will defend Landlord with respect to any claims that may arise in connection with the lease Premises.
Likewise, thae exists an insurance policy contracted by Secretary of Foreign Relations ex- process for all representation of the government of Mexico in the United States of America, with a policy insurance number 2520030023849 with INBURSA (Inbursa Seguros S.A., Grupo Financiero Inbursa).
13. Maintenance: Tenant agrees to keep the Premises of this Lease including all improvements there on clean, neat, painted and otherwise reasonably maintained.
14. Maintenance and Repairs: The Tenant agrees to keep the Premises clean, neat, painted and otherwise well maintained. All major repairs to the Premises and improvements including those related to its conservation, structure, function, security and accessories replacement, shall be at the Landlord's expense,
15. Utilities: Tenant agrees to pay for all utilities and services furnished to said Premises. 16 Alterations: Tenant must receive prior written confirmation from Landlord before any alterations or additional improvements are made to the Premises. A violation of this section of the Lease shall be cause for the default by the Tenant.
17. Attorney's Fees: Should Landlord be compelled to institute any legal action to enforce any of the terms, covenants or conditions hereof, in the event of the termination of said proceedings in the Landlord's favor, the Tenant hereby agrees to pay such sums as the court may deem reasonable on account of the Landlord's attorney's fees. 18 Possessory interest: California Revenue and Taxation Code Section 107.6 requires that every City lease include a paragraph that states that Tenant recognizes and understands that this Lease may create a possessory interest subject to property taxation and the Tenant may be subject to the payment of property taxes levied on such interest. Tenant is correct in saying that no tax may be assessed against its consular post because itis exempt, based on the Vienna Convention on Consular Relations Article 32 subsection (I), which is related to the tax exemption of consular premises.
19. Binding upon Heirs: The covenants and agreements contained in this Lease shall inure to the benefit of and be binding on the parties hereto, theirs heirs, legal representatives, successors or assigns.
20 Notice: Notices between the parties hereto may be served by mailing in the United States mail to the following addresses:
Landlord: City of Calexico, 608 Heber Avenue, Calexico, CA 92231 Tenant: 408 Heber Avenue, Calexico, CA 92231
21. Modification: This Lease Agreement constitutes the leasing contract between the parties.
Any modification must be in writing and shall be signed by both parties and authorized by the Calexico City Council.
22. Severance: If any provision of this Lease is determined to be void by a court of competent jurisdiction, then such determination shall not affect any other provision of this Lease, and all such other provisions shall remain in full force and effect. It is the intention of the parties hereto that if any provision of this Lease is capable of two constructions, one of which would render the provision void and the other of which would render the provision valid, then the provision shall have the meaning that renders it valid.
23. Early Termination Clause: Due to the consular nature of its own functions, the Tenant keeps the right to terminate this Lease Agreement at any time, without further responsibility, and by communicating it in writing in no less than 30 (thirty) days. At the end of the aforesaid notification, this Lease Agreement, and all herein contained will be automatically terminated.
In case of fire, flooding, storm, earthquake, war, riot, or any other causes of force majeure, which would cause the premises to be damaged or destroyed as to render them unusable, the Landlord and Tenant shall have the right to terminate this Agreement through written notice. Upon such termination, Tenant shall be entitled to a refund of the accommodation fee prepaid for the period in which Tenant cannot use the Premises and of the deposit in the terms of this Agreement,
24. Conflict with the Vienna Convention on Consular Relations: Nothing in this Lease shall be construed as a waiver or a surrender of the rights and privileges afforded to Tennant under the Convention. To the extent that the provisions of this Lease conflict with the provisions of the Convention, the terms of the Convention shall govern and override the conflicting provisions of this Lease.
25. Applicable Laws: The parties hereto agree that the laws of the State of California, United States of America, shall govern this Lease Agreement and that venue shall be the Superior Court of the State of California, County of Imperial.
26. Negotiations in Good Faith: Landlord and Tenant shall endeavor to settle any dispute or difference concerning the interpretation or implementation of this Lease Agreement, as well as any other linked to the same, through negotiations conducted in good faith.
27. Difference of Opinion; Foy any dispute of difference of opinion unsettled through good- faith negotiations after reasonable period of time, the dispute shall be referred to the tribunals of the state in which the Premises are located.
28. Notice of Entry: Landlord and/or its agents or designees shall have the right to ender or pass through the Premises at all times after sending a written notice to Tenant with 48 (forty-eight) hours of anticipation of such entry. In case of fire, flooding, storm, earthquake, war, riot or any other causes of force majeure, notwithstanding the above, Lessor shall exhaust reasonable efforts and possibilities to seek immediate consent by Lessee prior gain access to the Premises,
IN WITNESS WHEREFORE, the parties hereto have executed this Lease Agreement on the day year above written.
Landlord: CITY OF CALEXICO
By: Miguel Figueroa, City Manager,__ , 2021
Tenant: UNITED MEXICAN STATES
Tarcisio Navarrete Montes de Oca._
Tyco
ATTACHMENT NO.2
ADDENDUM TO LEASE AGREEMENT
This Addendum ("Addendum") is entered into by and between the CITY OF CALEXICO, hereinafter referred to as the "Landlord," and the CONSULATE OF MEXICO IN CALEXICO, hereinafter referred to as the "Tenant," and is intended to supplement and clarify the terms and conditions of the Lease Agreement entered into by the parties.
1. PURPOSE. - The purpose of this Addendum is to clarify the applicability and continued effect of Clause 4 - Term of the Lease Agreement, which provides as follows:
"4. Term: The term of this Lease is one (1) year from 01-01-2021 to 12-31-2021, which will be renewed automatically, unless otherwise notified 60 days before the expiration date. For up to 5 periods of one year, without increase for rent. Should Tenant wish to continue the Lease, the request must be presented to the Calexico City Council and approved by it before any extension will be effective and binding on the City of Calexico."
2. APPLICABILITY OF CLAUSE 4.- The parties acknowledge and agree that Clause 4 of the Lease Agreement remains applicable and shall govern the term and renewal of the Lease, including the conditions and requirements established therein.
Accordingly, the Lease shall continue to be subject to the renewal provisions set forth in Clause 4, including the requirement that any continuation of the Lease beyond the applicable renewal periods be presented to and approved by the Calexico City Council prior to becoming effective and binding upon the City of Calexico.
3. FIFTH-YEAR EXTENSION OF THE LEASE. - Subject to the terms and conditions of the Lease Agreement and the requirements established in Clause 4, the parties agree to extend the Lease for its fifth one-year renewal period, effective January 1, 2026 through December 31, 2026, without any increase in rent, in accordance with the terms of Clause 4.
This Addendum is intended to document and confirm the applicability of Clause 4 to the fifth one-year renewal period and the continuation of the Lease under the terms and conditions originally agreed upon by the parties.
The parties further acknowledge that the execution of this Addendum does not modify any other provision of the Lease Agreement unless expressly stated herein.
4. NO OTHER MODIFICATIONS. - Except as expressly modified or clarified by this Addendum, all other terms, conditions, covenants, and provisions of the original Lease Agreement shall remain unchanged and in full force and effect.
In the event of any inconsistency between this Addendum and the Lease Agreement, the provisions of this Addendum shall govern solely with respect to the matters expressly addressed herein.
IN WITNESS WHEREOF, the parties have executed this Addendum as of the dates indicated below.
Landlord: CITY OF CALEXICO
By: Benjamin Martinez, City Manager, _
Date: _January_, 2026.
Tenant: UNITED MEXICAN STATES
By: acting through its Consulate in Calexico, California, duly represented by Consul María del Rocío Vázquez Álvarez, _
Date: _ January _ 2026.