1 LEASE AGREEMENT
THIS LEASE AGREEMENT (this “Lease”) is made as of September 9, 20 25, by and between the LANCASTER HOUSING AUTHORITY , a public body, corporate and politic (“Landlord”), and LANCASTER HOMELESS GROUP (DBA: S TREET COMPANY), (“Tenant”).
R E C I T A L S
A. Landlord is the owner of that certain real property located on Elm Avenue south of Milling St reet in the City of Lancaster, California (the “Premises”). The Premises is described in Exhibit “A” attached hereto and visually depicted in Exhibit “B” (the “Site Map”) attached hereto.
B. Subject to the terms of this Lease , Tenant has agreed to lease the Premises from Landlord in order to ope rate on the Premises a community garden (the “Community Garden”) that will offer certain services to the public.
C. Tenant desires to lease, occupy and use the Premises, subject to the terms and conditions set forth in this Lease.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:
1. Incorporation of Recitals. The foregoing recitals are incorporated herein and constitute a substantive part of this Lease.
2. Lease of Premises. Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, for the term, at the rental, and upon all of the conditions set forth herein, the Premises. Tenant’s lease, occupancy and use of the Premises is subject to and shall comply with the terms and conditions of this Lease.
3. Term. The term of this Lease shall commence on September 10, 20 25, and end September 9, 2028, unless terminated sooner pursuant to all terms of this Lease. This Lease shall be extended for two (2) consecutive one (1) year periods, unless Tenant gives notice of termination pursuant to all terms of this Lease. In the event Tenant holds over beyond the end of the term with the implied or express consent of the Landlord, such holding over shall be subject to all other terms and conditions of this Lease. Tenant may not hold over without the implied or express consent of Landlord. Notwithstanding any provision of this Lease, either party may terminate this Lease on thirty (30) days written notice to the other party.
4. Conditions Precedent. This Lease shall not become effective until and unless the parties hereto first approve and execute this Lease and Tenant has paid Landlord the first annual rent payment as provided in Section 5.
5. Rent. As rent for the Premises, Tenant agrees to pay to Landlord the sum of One Dollar ($1.00) per year for the term of this Lease, annually in advance. Any real property taxes and assessments in respect of the Premises are the sole responsibility of Landlord and are not part of the rent.
2 6. Utilities. During the term of this Lease, Tenant shall pay all utility charges required for the use of the Premises as the Community Garden, including without limitation, all charges for electricity, heating, air conditional, ventilation, water ( e.g., for drinking, lavatory, cleaning, washing and landscape and gardening needs), gas, sewer , storm drain, cable television and trash services.
7. Use. Tenant shall occupy and use the Premises exclusive for the purposing of operating the Community Garden pursuant and subject to the terms of this Lease, which shall not include overnight sleeping and/or the provision of overnight shelter . Tenant shall not use the Premises for any purpose other than as set forth in t his Section 7 without first obtaining the written consent of Landlord, which consent may be withheld at Landlord’s sole and absolute discretion. (a) Operating Plan; Audit. Upon written notice to Tenant, Landlor d may require Tenant to prepare and submit to Landlord an operating plan that describes the programs and services offered by the Community Garden. Additionally, Landlord shall have the right during normal business hours to inspect Tenant’s book s and other records, wherever located, concerning or related to Tenant’s operation of the Community Garden to ensure compliance with this Lease. (b) Nondiscrimination. Tenant shall not discriminate against any employee or applicant for employment because of sex, race, color, creed, or national origin, and shall not discriminate in the provision of service hereunder against any person on the basis of sex, race, color, creed, or national origin.
8. Maintenance, Repairs and Replacements. Landlord, at its sole expense, shall be responsible for maintaining in good condition at all times, for repairing and when needed, for replacing the building, fixtures, equipment and other improvements on the Premises, specifically including, without limitation, the roof, foundation and walls, the interior and exterior paint, the plate glass, the windows, the furniture and equipment installed or furnished by Landlord, the heating, ventilation and air conditioning systems, and all other mechanical, electrical, plumbing, drainage, irrigation and other facilities, fixtures or systems which are a part of or appurtenant to the Premises.
Tenant shall maintain the landscaping but otherwise have no maintenance repair or replacement obligation of any kind under this Lease, except as may subsequently be mutually agreed upon by Landlord and Tenant in writing.
9. Assignment. Tenant shall not assign this Lease, nor any interest therein, nor shall Tenant sublease the Premises or any part thereof without first obtaining the written consent of Landlord, it being expressly understood that such approval may be withheld at Landlord’s sole discretion. If Tenant assigns or subleases any interest herein to such an affiliated or subsidiary corporation, Tenant shall give written notice thereof to Landlord within thirty (30) days of the effective date of the assignment or sublease.
10. Casualty Insurance. Tenant, at its sole expense, shall maintain fire, extended coverage and all risk casualty insurance coverage on the building, the improvements and on all furniture, fixtures and equipment located in or on the Premises, in the amount of the full replacement value thereof. Tenant may elect to self -insure part of all of such responsibility.
Landlord shall be named under Tenant’s coverage as an additional insured as its interests may appear pursuant to Section 11.
11. Liability Insurance. Tenant, at its sole expense, shall secure and maintain general liability, and employers’ liability/workers compensation coverages, insuring against all liability 3 arising from the operation of the Community Garden under this Lease . The City of Lancaster, the City of Lancaster Successor Agency, the Lancaster Power Authority, the Lancaster Financing Authority, the Lancaster Housing Authority, the Lancaster Boulevard Corporation, the Lancaster Community Services Foundation, and the Lancaster Museum/Art Gallery Associates, as well as each of their respective officers, agents, servants and employees (collectively, the “City Entities”) are to be covered as certificate holder and as additional insured with respect to liability arising out of activities performed and products and completed operations by or on behalf of the Community Garden conducted by Tenant under this Agreement. All insurance shall be primary and non - contributory as respect to the City Entities. Any insurance or self -insurance maintained by the City Entities shall be in excess of Tenant’s insurance and shall not contribute with it. Tenant shall provide minimum insurance coverages consisting of the following:
(a) General Liability Insurance . Tenant, at its sole expense, shall maintain general liability insurance to include products/completed operations, contractual liability/independent contractors, broad form property damage, fire/legal, and medical expense insurance, with coverage of not less than Two Million Dollars ($2,000,000) aggregate, One Million Dollars ($1,000,000) per occurrence; Three Hundred Thousand Dollars ($300,000) fire/legal; and Ten Thousand Dollars ($10,000) medical expense.
(b) Employers’ Liability/Workers Compensation . Tenant, at its sole expense shall maintain employers’ liability insurance, with coverage of not less than One Million Dollars ($1,000,000) each accident per employee and One Million Dollars ($1,000,000) per bodily injury by disease, and workers compensation coverage shall meet state established statutory limits.
12. Waiver of Subrogation. Tenant shall and hereby does agree to waive all rights of subrogation against the City Entities for losses arising from work performed by Tenant on the Premises and/or related to its operation of the Community Garden.
13. Hold Harmless and Indemnification. Tenant agrees to indemnify and hold harmless the City Entities against all claims, damages, losses and expenses including attorney’s fees arising out of the operation of the Community Garden, caused in whole or in part by any negligent act or omission of Tenant, anyone directly or indirectly employed by Tenant or anyone for whose acts Tenant may be liable, except where cause by the active and sole negligence or willful misconduct of any of the City Entities.
14. Default. If any rent shall be due from Tenant hereunder and unpaid, or if Tenant shall breach any other covenant or provision of this Lease, then Landlord, after giving the proper notice required by law, may re -enter the Premises and remove any property and any and all persons therefrom in the manner allowed by law. Landlord may pursue any other rights and remedies which Landlord may have against Tenant by reason of such default, as provided by law, except that Landlord’s recovery of any damages shall be limited to the damages resulting from Tenant’s negligence of intentional misconduct and Landlord shall not be entitled to recovery of any punitive or exemplary damages.
15. Attorney’s Fees. In the event Landlord or Tenant shall bring an action or proceeding permitted by Section 14 of this Lease for an alleged breach of any provision of this Lease, or to enforce, protect or establish any right or remedy of either party under this Lease, the prevailing party shall be entitled to recovery as part of such action or proceeding reasonable attorney’s fees and costs.
4 16. Quiet Possession. Upon Tenant’s paying the rent for the Premises and observing and performing all of the covenants, conditions and provisions on Tenant’ part to be observed and performed hereunder, Tenant shall have quiet possession and use of the Premises of this Lease.
Tenant shall have exclusive use of the Premises for the entire term of this Lease, except for (i) incidental uses of the Premises by Landlord as to which Landlord and Tenant may mutually agree or (ii) Landlord’s reasonable performance of its duties pursuant to this Lease. Any individuals executing this Lease of behalf of Landlord represents and warrants to Tenant that he/she is fully authorized and legally capable of executing this Lease on behalf of Landlord and that such execution is binding upon all parties holding an ownership interest in the Premises.
17. Signs. Subject to applicable provisions of the Lancaster Municipal Code and/or any other applicable local, state or federal statute, ordinance or regulation, Tenant, at its sole expense, may place signs upon the Premises after first obtaining Landlord’s written consent, which shall not be unreasonably refused.
18. Compliance with Laws. Tenant warrants to Landlord that it shall comply, at its expense, with all statutes, ordinances, rules, orders, and regulations of the federal, state, county, and municipal authorities now in effect or which may hereafter come into effect, relating in any manner to Tenant’s use or occupancy of the Premises during the Term.
19. Notices. Any approval, disapproval, demand, document or other notice (“Notice”) which any party may desire to give to the other party under this Lease must be in writing and may be given either by (i) personal service, (ii) delivery by reputable document delivery service such as Federal Express that provides a receipt showing date and time of delivery, (iii) facsimile transmission, or (vi) mailing in the United States mail, certified mail, postage prepaid, return receipt requested, addressed to the address of the party as set forth below, or at any other address as that party may later designate by Notice. Service shall be deemed conclusively made at the time of service if personally served; upon confirmation of receipt if sent by facsimile transmission; the next business day if sent by overnight courier and receipt is confirmed by the signature of an agent or employee of the party served; the next business day after deposit in the United States mail, properly addressed and postage prepaid, return receipt requested, if served by express mail; and three (3) days after deposit thereof in the United States mail, properly addressed and postage prepaid, return receipt requested, if served by certified mail.
Tenant: Lancaster Homeless Group (DBA: Street Company)
104 E Avenue K4, Ste G,
Lancaster, CA 93535
Attn: Yongsuk (Jesse) Lee
Landlord: Lancaster Housing Authority
44933 North Fern Avenue
Lancaster, California 93534
Such addresses may be changed by Notice to the other party(ies) given in the same manner as provided above.
20. Amendment. This Lease may be amended but only by a writing signed by both parties hereto.
5 IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease as of the day and year above first written.
LANDLORD:
LANCASTER HOUSING AUTHORITY,
a public body, corporate and politic
By:
Name:
Its:
ATTEST:
By:
Authority Secretary
APPROVED AS TO FORM:
By:
Authority General Counsel
APPROVED BY EXECUTIVE DIRECTOR:
By:
Authority Executive Director
TENANT:
LANCASTER HOMELESS GROUP, DBA
STREET COMPANY,
By:
Name:
Its:
EXHIBIT A-1
EXHIBIT “A”
LEGAL DESCRIPTION OF PREMISES
LANCASTER S 59 FT OF N 177 FT OF W 150 FT KNOWN AS LOT 13 BLK 16 [APN: 3134-017-901 (Elm Avenue south of Milling Street)]
EXHIBIT B-1
EXHIBIT “B”
SITE MAP