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Attachment 3- Second Amendment to SBCS Lease Agreement.pdf

Chula Vista City Council
April 1, 2025

Document
Attachment 3- Second Amendment to SBCS Lease Agreement.pdf
Meeting
April 1, 2025
Body
Chula Vista City Council
Pages
4
Original file
154 KB
Text extracted from the city's file for reading and search. Open the original on pub-chulavista.escribemeetings.com. That file is the official record.

SECOND AMENDMENT TO STANDARD INDUSTRIAL/COMMERCIAL

SINGLE-TENANT LEASE -- GROSS

This Second Amendment (“Second Amendment”) to the Standard Industrial/Commercial Single-Tenant Lease -- Gross dated June 5, 2012 (“Lease”) is entered into by and between the City of Chula Vista (“City” or “Lessor”), a chartered municipal corporation, and SBCS Corporation, formerly South Bay Community Services (“Lessee”), a California nonprofit corporation. Lessor and Lessee may be referred to herein collectively as the “parties” and individually as a “party”.

Recitals

WHEREAS, Lessor is the owner of all interests in the real property and current improvements at 430 F Street, Chula Vista, California (“Premises”); and

WHEREAS, the parties entered into the Lease for the Premises dated June 5, 2012; and

WHEREAS, the parties amended the Lease under that certain first amendment to the Lease effective June 30, 2017 (“First Amendment”); and

WHEREAS, under the First Amendment, the parties extended the Lease term to expire on June 30, 2023 (“Expiration Date”), and authorized certain improvements to the Premises; and

WHEREAS, Lessee has informed Lessor of its desire to continue to rent the Premises beyond the Expiration Date; and

WHEREAS, Lessee agrees to vacate the Premises within 45 days following issuance of certificate of occupancy for Lessee’s new office building, located at 318 Fourth Avenue, Chula Vista, California (corner of Fourth Avenue and F Street), but no later than June 30, 2026; and

WHEREAS, pursuant to the Lease, as amended by the First Amendment, the monthly Base Rent, effective as of April 1, 2025 is $5,990 and adjusted annually according to Paragraph 51 (A)(I)(a) of the Lease; and

WHEREAS, the parties desire to extend and amend the Lease on the terms and conditions provided herein.

NOW THEREFORE, for good and valuable consideration, the adequacy of which the parties hereby acknowledge, the parties agree to amend the Lease as follows:

Amendment

1. Extension of Amended Term. Paragraph 1.3 of the Lease is deleted in its entirely and replaced with the following:

“Term: Fourteen (14) years and 0 months (“Original Term”) commencing on July 1, 2012 (“Commencement Date”) and ending June 30, 2026 or 45 days after issuance of certificate of occupancy, whichever is earlier (“Expiration Date”) .”

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2. Extension of Rent Adjustment for Original Term. Paragraph 51 (A)(I)(a) of the Lease is deleted in its entirely and replaced with the following:

“On: July 1 2013; July 1 2014; July 1 2015; July 1 2016; July 1 2017; July 1 2018; July 1 2019 ; July 1 2020; July 1 2021; July 1 2022; July 1, 2023; July 1, 2024; and July 1, 2025

the Base Rent shall be adjusted by the change, if any, from the first month of the term of this Lease as set forth in paragraph 1.3 in the Consumer Price Index of the Bureau of Labor Statistics of the U.S. Department of Labor for CPI U (All Urban Consumers) for San Diego (All Items1982-1984 = 100), herein referred to as “CPI”.”

3. Option to Extend. Paragraph 52 (A) of the Lease is deleted in its entirety and replaced with the following.

“A. NO OPTION TO EXTEND

Lessee has no right to extend this Lease or retain possession of the Premises or any part thereof beyond the expiration or termination of this Lease without the written consent of Lessor.”

4. No Right of Offer. Section 6 “Right of First Offer” of the First Amendment to Lease is deleted in its entirety and no longer has any force or effect.

5. Broker Fees. Notwithstanding any obligation of Lessor to make payments to Brokers for services rendered pursuant to the original Lease, Lessor has no further obligations to make any payments to Brokers and Lessee will be solely responsible for and make all payments to Brokers as necessitated by the parties entering into this Second Amendment.

6. Clarification of “Premises”. For the avoidance of doubt, the parties hereby agree that the term “Premises” under the Lease shall include all real property, buildings, parking facilities, and improvements currently located at 430 F Street, Chula Vista, California, 91911.

7. Parking. Lessee shall have exclusive access to parking facilities on the Premises during business hours, Monday to Friday, 7 a.m. to 5 p.m. The City reserves the right to use the Premises parking facilities for parking for public and/or City events outside of normal business hours and on weekends as needed. The City will notify Lessee of any scheduled events where overflow parking is likely.

8. Supersedes Prior Agreements. As of the effective date of this Second Amendment, the Lease shall supersede any and all other agreements between the parties related to all or any portion of the Premises, including without limitation that certain Property License Agreement dated March 28, 2023.

9. Additional Breach. Failure to comply with any terms, conditions, or covenants of the Lease as amended by this Second Amendment, shall constitute a material Breach under the Lease.

10. No Other Changes. This Second Amendment incorporates only the changes identified above. No other changes to the Lease are contemplated or intended by this Second Amendment. The remainder of the Lease shall remain unchanged and continue in full force and effect.

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THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.

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SIGNATURE PAGE
TO

SECOND AMENDMENT TO STANDARD INDUSTRIAL/COMMERCIAL
SINGLE-TENANT LEASE – GROSS

The parties hereto have executed this Second Amendment in Chula Vista, California effective as of June 30, 2023.

Dated: ___________________, 2025 CITY OF CHULA VISTA

______________________
Maria V. Kachadoorian, City Manager

APPROVED AS TO FORM:

__________________________
MARCO A. VERDUGO

CITY ATTORNEY

Dated: ___________________, 2025 SBCS CORPORATION

______________________
Kathryn Lembo, CEO

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