1 MUTUAL RESCISSION AND RELEASE AGREEMENT
This Mutual Rescission and Release Agreement (this “Agreement”) is entered into as of January 20, 2026 (the “Effective Date”), by and between the City of Redondo Beach, a chartered municipal corporation organized and existing under the laws of the State of California (“Tenant”), and Sunshine 11, L.P., a California limited partnership (“Landlord”), with reference to the following facts:
RECITALS
A. On or about October 18, 2025, Tenant and Landlord entered into a Residential Lease or Month-to-Month Rental Agreement (C.A.R. Form RLMM, Revised 12/24) for the premises located at 126 W. D Street, Unit 17, Wilmington, CA 90744 (the “Unit 17 Lease”), with a commencement date of October 18, 2025, and a termination date of June 30, 2026.
B. Pursuant to the Unit 17 Lease, Tenant paid a security deposit in the amount of $950.00 and prorated rent in the amount of $518.70 for the period from October 18, 2025, through October 31, 2025, with ongoing monthly rent of $1,037.40 thereafter.
C. On October 18, 2025, the parties agreed to substitute the leased premises from Unit 17 to Unit 23 at the same property address (126 W. D Street, Wilmington, CA 90744). Concurrently with the execution of this Agreement, Tenant and Landlord are entering into a separate lease agreement for Unit 23 (the “Unit 23 Lease”), which shall have a retroactive effective date of October 18, 2025, and otherwise incorporate substantially the same terms as the Unit 17 Lease, as modified solely to reflect the unit change and any expressly agreed revisions. Neither Tenant nor any individual designated by Tenant ever occupied or took possession of Unit 17.
D. The parties desire to mutually rescind the Unit 17 Lease retroactively to October 18, 2025, as if it had never been executed, with no obligations or liabilities arising thereunder, while confirming that the Unit 23 Lease is valid and enforceable solely with respect to Unit 23, and without affecting, superseding, or impairing any other existing or future lease agreements between the parties for other units or premises.
AGREEMENT
NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, the parties agree as follows:
1. RESCISSION OF UNIT 17 LEASE: The parties hereby mutually rescind, cancel, and terminate the Unit 17 Lease in its entirety, effective retroactively as of October 18, 2025 (the “Rescission Date”). The Unit 17 Lease shall be deemed null and void ab initio, as if it had never been executed. No rights, duties, obligations, or liabilities shall be deemed to have arisen under the Unit 17 Lease at any time. 2 2. TRANSFER AND CONTINUITY OF PAYMENTS: All amounts paid by Tenant in connection with the Unit 17 Lease, including the $950.00 security deposit and $518.70 prorated rent, shall be credited and applied without interruption to Tenant’s obligations under the Unit 23 Lease. No refund, deduction, offset, interest, or forfeiture shall apply.
The parties acknowledge and agree that the security deposit shall be deemed continuously held in compliance with California Civil Code § 1950.5, with no reset, forfeiture, or new accrual period triggered by this Agreement.
3. ESTABLISHMENT OF UNIT 23 LEASE; LIMITATION ON RETROACTIVITY: The Unit 23 Lease shall be effective retroactively as of October 18, 2025, solely for purposes of establishing continuity of tenancy and payment credits. No retroactive default, late fee, penalty, breach, or adverse consequence shall be deemed to have arisen prior to execution of the Unit 23 Lease, and Tenant shall be deemed in full compliance for all periods preceding execution.
4. MUTUAL RELEASE: Subject to the express limitations set forth herein, each party releases the other solely with respect to the Unit 17 Lease from any and all claims, demands, or causes of action, whether known or unknown, arising exclusively out of the Unit 17 Lease or the non-occupancy thereof, through the Effective Date.
This release does not apply to the Unit 23 Lease, and shall not impair any rights, remedies, or claims arising thereunder.
The parties do not waive any rights or protections that cannot be waived as a matter of law, including but not limited to rights under California Civil Code §§ 1940– 1954.06, applicable local tenant protection ordinances, or laws governing habitability, security deposits, retaliation, or unlawful eviction.
5. NO OCCUPANCY; NO DAMAGES: The parties acknowledge that Unit 17 was never occupied, no possession was taken, and no damage, wear, or condition arose.
Tenant has no obligation to surrender keys, perform cleaning, or restore Unit 17.
6. PRESERVATION OF UNIT 23 LEASE: This Agreement shall not affect the validity, enforceability, or operation of the Unit 23 Lease, which shall remain in full force and effect according to its terms.
7. NO ADMISSION OF LIABILITY: This Agreement constitutes a compromise and shall not be construed as an admission of liability, fault, or wrongdoing by any party.
8. GOVERNING LAW AND VENUE: This Agreement shall be governed by the laws of the State of California. Venue for any action arising hereunder shall lie exclusively in the courts of Los Angeles County, California.
9. NO WAIVER OF GOVERNMENTAL IMMUNITIES: Nothing in this Agreement shall be construed as a waiver of any governmental immunities, defenses, or limitations of liability available to Tenant as a municipal corporation under California law. 3 10. ENTIRE AGREEMENT: This Agreement constitutes the entire agreement regarding the subject matter herein and may be amended only by a writing signed by both parties.
11. COUNTERPARTS: This Agreement may be executed in counterparts and by electronic signature, each of which shall be deemed an original.
12. SEVERABILITY: If any provision is held unenforceable, the remainder shall remain in full force and effect.
13. AUTHORITY: Tenant warrants and represents that upon Tenant’s Council approval, the Mayor of the City of Redondo Beach is duly authorized to enter into and execute this Agreement on behalf of Tenant. The party signing on behalf of Landlord warrants and represents that he or she is duly authorized to enter into and execute this Agreement on behalf of Landlord, and shall be personally liable to Tenant if he or she is not duly authorized to enter into and execute this Agreement on behalf of Landlord.
IN WITNESS WHEREOF, the parties have executed this Agreement in Redondo Beach, California, as of this 20th day of January, 2026.
TENANT LANDLORD
CITY OF REDONDO BEACH SUNSHINE 11, L.P.
By: ____________________________ By: ____________________________ Name: James A. Light Name: _________________________
Title: Mayor Title: ___________________________
By:_____________________________
Name: Joy A. Ford
Title: City Attorney
ATTEST: APPROVED:
_____________________________ _______________________________ Eleanor Manzano, City Clerk Diane Strickfaden, Risk Manager