THIRD AMENDMENT OF LEASE AGREEMENT BETWEEN
CITY OF FULLERTON
AND
CALVARY CHAPEL OPEN DOOR CHURCH
This Third Amendment of Lease Agreement ("Amendment") is made this [Day] of [Month], [Year], between the City of Fullerton, a California municipal corporation ("Lessor"), and Calvary Chapel Open Door Church, ("Lessee") in accordance with the California Government Code Sections 65864 through 65869.5 and Article XI, Section 7 of the California Constitution.
RECITALS
WHEREAS, reference is made to that certain document entitled "Lease Agreement – Main Plant Parking” between Calvary Chapel Open Door (“LESSEE”) and City of Fullerton (“LESSOR”), dated July 16, 2002, including any amendments and other modifications thereto (hereinafter “LEASE”), whereby LESSOR agreed to lease City property located in Anaheim (APN# 271-082-26 – Main Plant) to Lessee for use as a parking lot; and
WHEREAS, Amendment No. One, approved by the Fullerton City Council on or about August 19, 2004, the parties amended Section 19 by adding Section 19(p) regarding installation of an 8-inch storm drainpipe; and WHEREAS, in Amendment No. Two, approved by the Fullerton City Council on or about July 17th, 2007, the parties further amended the lease as follows: 1) Section 4 of the Lease (Term) was extended; and 2) Section 5 added a rent review provision using current fair market value analysis for comparable facilities in Orange County; and WHEREAS, Section 5 of the original Lease specifies the rental terms agreed upon by the parties; and
WHEREAS, the Lessee, a 501(c)(3) nonprofit organization has requested a 30% lease rate reduction because the church has experienced financial difficulties following the pandemic and as a result is experiencing a shortfall in revenue making monthly rent payments to Lessor a financial hardship; and
WHEREAS, although the 20% lease reduction would result in an approximately $6,557 reduction is city revenue per year, the likelihood of finding another feasible tenant for the property is extremely limited as the site is adjacent to a Public Works water operation and would not be suitable to serve any other commercial purpose for adjacent businesses or property owners. In addition, since the subject property is located within the jurisdiction of the City of Anaheim, the city’s flexibility on alternative uses for the property is limited; and
WHEREAS, the Agreement provides that such changes may be made by mutual written consent of the authorized representatives of both parties; and
NOW, THEREFORE, in consideration of the foregoing Recitals, the agreement of the parties as set forth herein and in consideration of the terms and conditions specified herein, the parties agree as follows:
1. This Third Amendment shall be effective upon execution.
2. The Lease (attached hereto), including the First and Second Amendment are hereby incorporated by reference, and all of its terms and conditions, including capitalized terms defined herein, shall be given full force and effect as if fully set forth herein.
3. Additionally, the City may utilize lessee space as necessary for the storage of city equipment and items on an as needed basis and Lessor will complete a good faith effort to collaborate where possible on community outreach.
4. The amount of monthly rent due under Section 5 (Rent) is amended to read as follows:
(a) Amount of Rent: On the effective date of this Third Amendment, the monthly rental amount payable by the Lessee, as stipulated in Section 5 of the Lease, shall be reduced by 20% and modified against a 3% escalator of the original lease amount each year. Rent shall be payable to: LESSOR: City of Fullerton, 303 West Commonwealth Avenue, Fullerton, CA 92832, Attention: Accounts Receivable.
(b) Duration of Modified Rent: The modified rental amount as specified in this Third Amendment shall be valid for the remainder of the lease.
4. Entire Agreement: Except as expressly provided in this Amendment, all other terms and conditions of the Lease, including all amendments thereto, shall remain in full force and effect.
In the event of any conflict between the terms of this Amendment and the Lease, the terms of this Amendment shall prevail.
5. Binding Effect: This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.
IN WITNESS WHEREOF, the parties have executed this Third Amendment of Lease Agreement as of the day and year first above written.
LESSOR: LESSEE:
CITY OF FULLERTON Calvary Chapel Open Door
_______________________ _______________________
By: Eric Levitt By: ____________________
Title: City Manager Title:___________________
APPROVED AS TO LEGAL FORM
___________________________
By: Richard D. Jones
Title: City Attorney
ATTEST:
_________________________
By: Lucinda Williams
Title: City Clerk