STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION EXHIBIT LEASE AGREEMENT 11-EX-B (REV 1/2021)
LEASE AGREEMENT
Tenancy Number 11-011004-0001-01
THIS LEASE is made and entered into this 1st day of September 2025, at San Diego , California, by and between the State of California, Department of Transportation, hereinafter known as Department, and the City of Chula Vista, hereinafter known as Lessee, whose address is 276 Fourth Avenue, Chula Vista, California, 91910.
WITNESSETH
1) DESCRIPTION: The Department, in consideration of the payment of the rent hereinafter specified to be paid by the Lessee(s), and the covenants and agreements herein contained, does hereby lease, demise, and let unto Lessee(s) that certain property in the County of San Diego, State of California, the address of which is 415 East J Street, Chula Vista, Ca, 91910, and legally described as: McCandliss Park, a community park.
A visual representation of the lease area is indicated on the map attached hereto as Exhibits A and Exhibit B.
2) TERM: This lease shall initially be for (5) years commencing on the 1st day of September 2025, after which, and beginning September 1, 2030, shall be on a month-to-month basis, with the right of cancellation and termination in both Department and Lessee(s) as hereinafter set forth. 3) RENT: The rent shall be paid by the Lessee(s) annually, in advance, on the first (1st) day of each September during said term, in lawful money of the United States, as follows:
Rent payable or refundable hereunder for any period of time less than one year shall be determined by prorating the monthly rental herein specified based on a thirty-day (30-day) month
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LEASE AGREEMENT (Cont.) 11-EX-B (REV 1/2021)
4) RECEIPT OF MONIES PAID: Department acknowledges receipt of monies paid by Lessee(s) in the amount of $5.00, for the following purposes:
Rent $ 5.00/month or $60.00/year
Security $ N/A
5) SECURITY DEPOSIT: Lessee(s) shall deposit with Department $N/A as a guarantee for faithful performance of the conditions of this Lease. Department may use such amounts as ar
e reasonably necessary to remedy Lessee(s) default in the payment of rent; to repair damages caused by Lessee(s); and to clean the premises, if necessary, upon termination of tenancy. If used toward rent or damages during the term of tenancy, Lessee(s) agrees to reinstate said total security deposit upon five (5) days’ written notice delivered to Lessee(s) in person or by mail. Department shall return any remaining portion of the security to Lessee(s) in accordance with California Civil Code Section 1950.7. 6) PAYMENTS: All rental payments shall be made payable to the Department of Transportation. Lessee(s) shall make payment to Department’s mailing address or street location as indicated below:
Department of Transportation Department of Transportation Attention: Cashier Attention: Cashier
P.O. Box 168019 1820 Alhambra Boulevard, 2nd
Floor
Sacramento, CA 95816-8019 Sacramento, CA 95816
Lessee(s) shall include the complete Tenancy Number, 11-011004-0001- 01, on the
check or other form of payment.
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LEASE AGREEMENT (Cont.) 11-EX-B (REV 1/2021)
7) LATE PAYMENT CHARGE: Lessee(s) hereby acknowledges that late payment by Lessee(s) to Department of rent and other sums due hereunder will cause Department to incur costs not contemplated by this lease, the exact amount of which will be extremely difficult to ascertain. Such costs include, but are not limited to, processing and accounting charges. Accordingly, if any installment of rent or any other sum due from Lessee(s) shall not be received by Department within ten (10) days after such amount shall be due, Lessee(s) shall pay to Department a late charge of $90.00. In no event shall the late charge exceed the maximum allowable by law. The parties hereby agree that such late charge represents a fair and reasonable estimate of the costs Department will incur by reason of Lessee’s late payment. Acceptance of such late charge by Department shall in no event constitute a waiver of Lessee’s default with respect to such overdue amount, nor prevent Department from exercising any of the other rights and remedies granted hereunder.
8) DISHONORED CHECK CHARGE: Lessee(s) hereby agrees:
a) That Lessee(s) shall pay to Department a fee of $25.00 for the first dishonored check and $35.00 for a second dishonored check.
b) That if Lessee(s) has two (2) dishonor ed checks within any twelve (12) month period, the Department will no longer accept personal checks for payments due under this Lease.
9) UTILITIES: Lessee(s) shall pay when due all utility and other charges accruing or payable, including utility deposits, in connection with Lessee(s) use of the property during the term of this lease. Lessee(s) shall contact utility providers to request that utility service be established in Lessee’s name by November 1, 2022.
In the event Lessee(s) fails to establish service in Lessee(s) name by above-mentioned date, this Lease will be terminated.
If the Department is paying any or all utility charges, and passing those costs on the Lessee(s), the Department will review the utility charges at least annually, or more often if needed, and with a sixty-day (60-day) notice adjust the amount being charged to Lessee for utilities accordingly.
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LEASE AGREEMENT (Cont.) 11-EX-B (REV 1/2021)
10) NOTICES:
All Notices herein provided to be given, or which may be given, by either party to the other, shall be deemed to have been fully given when served personally, or when made in writing and mailed addressed as follows: To Lessee(s) at the above-stated and to Department at:
Department of Transportation
Property Management/Right of Way
4050 Taylor St, MS 310
San Diego, CA 92110
619-961-0298
(Telephone Number)
The address to which the notices shall be mailed to either party shall be changed by written notice by either party to the other, but nothing herein shall preclude the giving of notice by personal service. Department shall also be able to serve notices by posting and subsequent mailing to Lessee(s). 11) USE: Lessee(s) shall use the property for the following purposes only:
a) Community Park
b) Lessee(s) shall not commit, suff er, or permit any waste on said property. c) Lessee(s) shall comply with all Federa l, State, and local laws and ordinances concerning said property and the use thereof.
d) Lessee shall not allow vehicle or equi pment washing, fueling, maintenance or repair on the property, unless separately authorized by this lease agreement for industrial activity.
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LEASE AGREEMENT (Cont.) 11-EX-B (REV 1/2021)
12)
ASSIGNMENT AND SUBLETTING: Lessee(s) shall not assign or sublet this lease without Department’s written consent. This includes, but is not limited to, room rentals, short term rentals, and vacation rentals. The Department has not consented to any assignments or sublets as of the date of this lease.
Any request by Lessee(s) to assign this lease shall be subject to the following:
a) An assignment will only be allowed to a person or entity of equal or greater financial responsibility than Lessee(s).
b) The proposed use must be the same or similar to that employed by Lessee(s). c) A written application from the propos ed assignee is required. Lessee(s) will pay all charges incurred for verifying information in the application process. d) Department has the right to raise the rent to current market value upon Lessee’s exercise of a right to assign.
e) Assignment does not relieve the Lessee(s) of any duties or obligations under the lease.
f) Any assignment is not deemed a consent to any subsequent assignment. g) Lessee(s) shall pay to Department an amount equal to fifty percent (50%) of the gross sales price agreed upon by the parties in connection with any assignment.
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LEASE AGREEMENT (Cont.) 11-EX-B (REV 1/2021)
13) PETS: No b irds, animals, or other pets shall be kept on the premises without the Department’s prior written consent.
The Department has approved no birds, animals, or other pets. 14) MAINTENANCE: Lessee(s) shall keep property in a neat, clean, and orderly condition at all times during occupancy, including watering of shrubs and lawns (if applicable), and shall not permit rubbish, weeds, garbage, etc., to accumulate at any time. Lessee(s) shall not permit or allow any graffiti to be placed upon or remain upon any surface located on the leased property for longer than 48 hours.
15) CONDITIONS AND REPAIRS: Lessee(s) shall not call on Department to make any improvements or repairs on the property, but Lessee(s) hereby specifically covenants and agrees to keep the property including furnishings and equipment, if applicable, in good order and condition at Lessee’s cost and expense. Lessee(s) further agrees to provide an adequate number of garbage and trash receptacles in clean condition and good repair subject to ordinary wear and tear. Department agrees to maintain the exterior walls, roof, main sewer and water service lines to building, and any other major repairs in good repair and orderly condition at all times during the term . Landlord warrants that, to the best of Landlord’s knowledge, the Property, and the path of travel to the Property at the time of the term commencement are not in violation with the current Americans with Disabilities Act (“ADA”).
16) ALTERATIONS: Lessee(s) shall not make or suffer any alteration to be made in or on the property without Department’s written consent. 17) OWNERSHIP OF IMPROVEMENTS : All alterations made or added to the leased property by Lessee(s) pursuant to Clause 16, except the Lessee(s) inventory, equipment, movable furniture, wall decorations, and trade fixtures, shall be deemed real property and a part of the leased property, but shall remain the
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LEASE AGREEMENT (Cont.) 11-EX-B (REV 1/2021)
property of the Lessee during the term of this lease. Lessee hereby covenants and agrees not to grant a security interest in any such items to any party other than Department. Lessee may remove from the leased property any alterations it makes to the property during the term of this lease without notice to the Department. At the expiration of the term, or any sooner termination of this lease, all such alterations other than Lessee(s) inventory, equipment, movable furniture, wall decorations, and trade fixtures, shall automatically become property of Department and shall be surrendered to Department as part of the leased property unless Department shall require Lessee(s) to remove any such alterations in which case Lessee(s) shall so remove same. Department shall have no obligations to reimburse Lessee(s) for all or any portion of the cost or value of any such alterations so surrendered to Department. Lessee(s) shall be responsible for any damage caused to the leased property for the removal of such alterations at Department’s demand.
18) TERMINATION: This lease shall be subject to cancellation or termination by either party at any time during the term hereof by giving the other party notice in writing at least _30_ days next prior to the date when such termination shall become effective. The Department will refund to Lessee(s) any unused rent upon termination by either party prior to the Lease expiration date in Clause 2. 19) VACATING THE PROPERTY: At the expiration of the term, or any sooner termination of this lease, Lessee(s) agrees to quit and surrender possession of the property and its appurtenances to Department in as good order and condition as the property was delivered to the Lessee(s). Prior to the expiration of the term, or any sooner termination of this lease, Lessee(s) shall notify Department to perform a move-out inspection. Lessee(s) agrees to reimburse the Department for any damage done to the property caused by Lessee(s) occupation or tenancy excepting reasonable wear and tear and damage by the elements.
Lessee(s) shall not leave or allow to remain on the property any garbage, refuse, debris, or personal property. Lessee(s) will pay Department any removal costs incurred by Department. On the date the property is vacated, Lessee(s) agrees to deliver the property keys to the Department in person or at: _N/A_______________________.
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LEASE AGREEMENT (Cont.) 11-EX-B (REV 1/2021)
20) RELOCATION PAYMENT: Lessee(s) acknowledges the following: Lessee(s) commenced occupancy of the premises after Department acquired title to it, Department acquired the premises for a public
project, Lessee(s) may be
required to vacate the premises to allow construction of the public project, and Lessee(s) is not entitled to receive any payments under either the State or the Federal Uniform Relocation Assistance Act. (Government Code, Section 7260, et seq.; 42 United States Code, Section 4601, et seq.)
21) POSSESSORY INTEREST: Tax bills inadvertently received by Lessee(s) should be forwarded to Department for processing.
22) RIGHT OF ENTRY: Lessee(s) shall permit Department or its authorized agent to enter into and upon the property, with or without the Lessee’s presence, during normal business hours, subject to a twenty-four hour (24-hour) notice, for the following purposes: performing routine inspections, maintaining the property, installing protective or conservation devices and for showing the property to prospective purchasers and/or lessees. Department reserves its right, without notice, to enter property in case of emergency or to prevent imminent harm to persons or property.
23) INSURANCE: Department is self-insured and will not keep the property insured against fire or any other insurable risk, and Lessee(s) will make no claim of any nature against Department by reason of any damage to Lessee’s property in the event it is damaged or destroyed by fire or by any other cause. 24) LIABILITY AND PROPERTY DAMAGE INSURANCE: Department shall accept Tenant’s qualified self-insurance or risk pool insurance in lieu of the insurance policies set forth below. Otherwise, Lessee(s) shall, at Lessee’s expense, obtain and keep in force during the full term of the tenancy:
General liability insurance providing coverage in the amount of one million dollars ($1,000,000) per occurrence for Bodily Injury and Property Liability
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LEASE AGREEMENT (Cont.) 11-EX-B (REV 1/2021)
combined, in a company or companies to be approved by the Department, to protect Department, its officers, agents and employees against all claims, suits or actions of every name, kind, and description brought forth, or on account of, injuries to or death of any person occurring in or about the property or on account of damage to property incident to the use of, or resulting from, any and every cause occurring in or about the property which is the subject of this lease, including any and all claims, suits or actions for damage to vehicles on the property.
With respect to third-party claims against Lessee(s), Lessee(s) waives any and all rights to any type of express or implied indemnity against Department, its officers or employees.
It is the intent of the parties that Lessee(s) will indemnify, defend and hold harmless the Department, its officers and employees from any and all claims, suits or actions as set forth above regardless of the existence or degree of fault or negligence on the part of Department, Lessee(s), the officers or employees of either of these, other than the sole negligence of Department, its officers and employees.
Nothing in this lease is intended to create the public or any member thereof a third-party beneficiary hereunder, nor is any term or condition or other provision of the lease intended to establish a standard of care owed to the public or any member thereof.
Said policies shall name Department as an additional insured and shall inure to the contingent liabilities, if any, of Department and the officers, agents and employees of Department and shall obligate the insurance carriers to notify Department, in writing, not less than thirty (30) days prior to the cancellation thereof, or any other change affecting the coverage of the policies. Lessee(s) shall furnish to Department either a certified copy of each and every such policy or a fully executed “CERTIFICATE OF INSURANCE WITH ENDORSEMENT FOR LEASE OF STATE-OWNED PROPERTY” within not more than ten (10) days after the
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LEASE AGREEMENT (Cont.) 11-EX-B (REV 1/2021)
effective date of the policy. Lessee(s) agrees that if Lessee(s) does not keep such insurance in full force and effect, Department shall have the right to immediately terminate this lease.
25) INDEMNIFICATION: Lessee(s) shall indemnify, defend, and hold the Department, its officers, agents and employees harmless from and against any loss, cost, or expense, including, but not limited to, attorney fees and court costs, resulting from any claim by any third party arising out of or connected to the actions of Lessee(s), notwithstanding Department’s, its officers’, agents’ and employees’ active or passive negligence, and/or regarding all acts and omission, including but not limited, to the willful misconduct or negligence of the Lessee(s).
Further, it is the parties’ intent that the indemnity provisions stated herein, apply to losses resulting from Lessee’s negligence or any cause other than the willful misconduct or sole negligence of Department, its officers, agents or employees. 26) HAZARDOUS MATERIALS: Hazardous materials are those substances listed in California Code of Regulations, Title 22, Division 4.5, Chapter 11, Articles 4 through 5, or those which meet the toxicity, reactivity, corrosivity or ignitability criteria of California Code of Regulations, Title 22, Division 4.5, Chapter 11, Article 3, as well as any other substance which poses a hazard to health or environment.
Except as otherwise permitted in this lease, Lessee(s) shall not use, create, store or allow any such substances on the premises. Fuel stored in a motor vehicle for the exclusive use in such vehicle is excepted.
In no case shall Lessee(s) cause or allow the deposit or disposal of any such substance on the leased property. However, household products necessary for routine cleaning and maintenance of the property may be kept on the leased premises in quantities reasonable for current needs.
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LEASE AGREEMENT (Cont.) 11-EX-B (REV 1/2021)
Department, or its agents or contractors shall at all times have the right to go upon and inspect the leased premises and the operations conducted thereon to assure compliance with the requirements herein stated. This inspection may include taking samples of substances and material
s present for testing, and/or
testing soils or underground tanks on the premises.
Lessee(s) shall further hold the State, and any officer or employee, harmless from all responsibility, liability and claim for damages resulting from the presence or use of hazardous materials on the premises during Lessee’s period of use and possession.
Notwithstanding anything to the contrary contained in this lease Lessee shall not be required to remediate or pay for the removal of Hazardous Materials, to the extent that such Hazardous Materials existed (I) and were present on the premises prior to the commencement of the term or (II) are placed in, on, or under about the premises by the Department or any of the Department’s agents or contractors.
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LEASE AGREEMENT (Cont.) 11-EX-B (REV 1/2021)
27) WATER POLLUTION CONTROL: Lessee shall not allow discharge of contaminated stor
m water runoff or unauthorized non-storm water discharges to private or public storm water drainage systems. Lessee shall comply with State and Federal water pollution control requirements, and those of municipalities, counties, drainage districts, and other local agencies regarding discharges of storm water and non-storm water to sewer systems, storm drain systems, or any watercourses under jurisdiction of the above agencies.
Lessee shall implement and maintain the best management practices (BMPs) shown in the attached Stormwater Pollution Prevention Fact Sheet(s), attached hereto as Exhibit ___ and incorporated herein by this reference, for: Parks, parking lot, storage, etc. See attached.
Lessee shall identify any other potential sources of storm water and non-storm water pollution resulting from Lessee’s activities on the premises, which are not addressed by the BMPs contained in the attached Fact Sheet(s) and shall implement additional BMPs to prevent pollution from those sources. Additional BMPs may be obtained from the Right-of-Way Property Management and Airspace Storm Water Guidance Manual (RW Storm Water Manual) available for review at the Department’s District Right of Way office or online at the RW Storm Water website. In the event of conflict between the attached Fact Sheet(s) and this Lease, this Lease shall control.
Lessee shall provide Department with the Standard Industrial Classification (SIC) code applicable to Lessee’s facilities and activities on the lease premises. A list of regulated SIC codes may be found at the State Water Resources Control Board (SWRCB)’s website. Other SIC codes may be found at the US Labor Department’s website.
Department, or its agents or contractors, shall at all times have the right to go upon and inspect the premises and the operations conducted thereon to assure compliance with the requirements herein stated. This inspection may include
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LEASE AGREEMENT (Cont.) 11-EX-B (REV 1/2021)
taking samples of substances and materials present for testing, and/or testing of sewer systems, storm drains, or watercourses on the premises. 28) INDUSTRIAL GENERAL PERMIT: For any activities conducted on the lease premises listed in Attachment A to General Permit Order 2014-0057-DWQ (Industrial General Permit) issued by the State Water Resources Control Board (SWRCB), Lessee shall develop, implement and maintain a Storm Water Pollution Prevention Plan (SWPPP) covering those activities. Information on the Industrial General Permit is electronically available at the SWRCB website. Lessee will address storm water and water quality protection by implementing appropriate best management practices (BMPs) described in the SWPPP. A copy of the SWPPP, including any updates, will be provided to the Department and also maintained on the lease premises.
Lessee shall also provide a copy of the following: Notice of Intent (NOI) or No Exposure Certification (NEC) filed with the SWRCB; Receipt Letter from SWRCB showing Waste Discharge Identification (WDID) Number; and Notice of Termination (NOT), if applicable. Lessee is solely responsible for compliance with the General Industrial Permit.
Lessee(s) is solely responsible for compliance with the Industrial General Permit and SWPPP and shall indemnify, defend, and hold Department, its officers, agents, and employees harmless from all responsibility, liability, and claims for damages resulting from the performance or nonperformance of Lessee(s) obligations under the Industrial General Permit and SWPPP. 29) WAIVER: If any part of this Lease is invalid by reason of law or governmental regulation, or if any provisions hereof are waived by Department, the remaining portions of this lease shall remain in full force and effect. Department’s receipt of rent with the knowledge of any breach of a provision of this lease shall not constitute a waiver of such breach.
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LEASE AGREEMENT (Cont.) 11-EX-B (REV 1/2021)
30) AMENDMENTS:
The terms of the lease may be, in writing, amended, revised, altered, or changed, by mutual consent of the parties hereto upon thirty (30) days’ written notice. Any amendment, revision, alteration, or change shall operate with the same force and effect as the original agreement. 31) PREVIOUS AGREEMENTS: Any existing lease or rental agreement between Lessee(s) and Department (or its predecessor in interest) covering this property are terminated as of the effective date of this lease.
32) LITIGATION COSTS: In the event that a suit is necessary to enforce any of the provisions herein contained, or to recover possession of the premises, the prevailing party shall be entitled to reasonable attorney’s fees in addition to costs and necessary disbursements.
33) HOLD OVER: Should Lessee(s) hold over after the expiration of the term of this lease with Department’s consent, express or implied, the tenancy shall be deemed to be a tenancy only from month to month, subject otherwise to all the terms and conditions of this lease so far as applicable.
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34) NONDISCRIMINATION: The Lessee(s), for themselves, their heirs, personal representatives, suc
cessors in interest, and assigns as a part of the consideration hereof, does hereby covenant and agree, as a covenant running with the land, that Lessee(s) shall maintain and operate any facilities on the land or services offered thereon in compliance with all other requirements imposed pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in federally assisted programs of the Department of Transportation-Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended.
Lessee(s) also agrees that in the event of breach of any of the above nondiscrimination covenants, the State of California shall have the right to terminate the lease and to reenter and repossess said land and the facilities thereon and hold the same as if said lease had never been made or issued.
All services and/or benefits to be derived from any right of way activity undertaken by the Department, including the leasing and management of this property, will be administered without regard to race, color, national origin, sex, disability, religion, sexual orientation, and age under any program or activity receiving federal financial assistance in compliance with Title VI of the 1964 Civil Rights Act and related federal statutes and state law.
35) ENCUMBRANCES: Lessee(s) shall not encumber the rented premises in any manner whatsoever.
36) ASSIGNMENT FOR BENEFIT OF CREDITORS, INSOLVENCY, OR BANKRUPTCY: Appointment of a receiver to take possession of Lessee’s assets, Lessee’s general assignment for benefit of creditors, or Lessee’s insolvency or taking or suffering action under the Bankruptcy Act is a breach of this lease and this lease shall terminate.
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LEASE AGREEMENT (Cont.) 11-EX-B (REV 1/2021)
37) POSTING OF PROPERTY: Department or its agents shall at all times have the right to serve or to post thereon any notice required or permitted by law for protection of any right or interest of the Department.
38) HEADINGS:
The marginal or clause headings of this lease are not a part of this lease and shall have no effect upon the construction or interpretation of any part hereof.
39) COUNTERPARTS: This Lease may be executed in any number of counterparts, each of which shall be deemed an original, but all of which, together, shall constitute one and the same Lease. In order to expedite the transaction contemplated herein, to the extent allowable under applicable Law, telecopied signature or signatures transmitted by electronic mail in so-called “pdf” format may be used in place of original signatures on this Lease. Department and Lessee intend to be bound by the signatures on the telecopied or electronic mailed document, are aware that the other party will rely on the telecopied or electronic mailed signatures which shall be of the same force and effect as hand-written signatures, and hereby waive any defenses to the enforcement of the terms of this Lease based on telecopied or electronic mailed signatures. 40) GOVERNING LAW AND VENUE . This Lease Agreement shall be governed by the laws of the State of California. Any action to interpret or enforce this Lease Agreement shall be brought and maintained exclusively in the courts of and for San Diego County, California.
BREACH OF ANY OF THE ABOVE COVENANTS, TERMS, AND CONDITIONS SHALL GIVE EITHER PARTY AUTHORITY TO IMMEDIATELY TERMINATE THIS LEASE.
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LEASE AGREEMENT (Cont.) 11-EX-B (REV 1/2021)
STATE OF CALIFORNIA
DEPARTMENT OF TRANSPORTATION Tiffany Allen,
Chula Vista City Manager
APPROVAL RECOMMENDED
Rich Covey
Deputy District Director
Right of Way