LEASE AGREEMENT
This Lease Agreement is made as of February 17, 2026, by and between Beach Cities Health District (BCHD), a California Health District (" Landlord") and the City of Redondo Beach, a California charter city and municipal corporation (" Tenant"), who agree as follows:
RECITALS:
WHEREAS, the City of Redondo Beach desires to lease office space from the District, as described in Section 1.1, for use by its alternative crisis response team for administrative and related purposes when not in the field.
NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth and for other good and valuable consideration, the parties hereto agree as follows:
1. Basic Lease Terms.
1.1 Premises. The Premises consist of approximately 135 rentable square feet known as Suite # 324 of the Building ( as defined in Section 1.2) together with one ( 1) desk, one ( 1) table, two ( 2) chairs, and one ( 1) filing cabinet ( Collectively, the “ Landlord Furniture”) and attached hereto as Exhibit A the "Premises"). The address of the Premises is 514 N. Prospect Avenue, Redondo Beach, CA 90277.
1.2 Building. The Premises are contained in a building located at 514 N. Prospect Avenue, Redondo Beach, CA 90277 ( the "Building").
1.3 Site. The Building and the Premises are located at a medical office campus on North Prospect Avenue between Diamond Street and Beryl Street in the City of Redondo Beach. which contains approximately 9.362 acres (the "Site").
1.4 Term. The term of the Lease is through September 9, 2026, beginning on the Commencement Date" as defined in Section 5. The estimated delivery date is February 17, 2026. There are no options to extend unless an agreement is reached between Landlord and Tenant to continue the term of this Lease.
1.5 Rent. The value of the rent for the Premises is $405 per month beginning on the Rent Commencement Date through September 9, 2026.
1.6 Commencement Date. The Commencement Date is the date of the mutual execution of this Lease.
1.7 Rent Commencement Date. The Commencement Date of the Rent is the date possession of the Premises is delivered to Tenant pursuant to Section 5.2.2 hereof.
1.8 Use. The Premises shall be used for office space, and related uses.
1.9 Notice Address:
Landlord: Monica Suua, CPA, CIA
1200 Del Amo Street
Redondo Beach, CA 90277
Tenant: City of Redondo Beach
Attn: Mike Witzansky, City Manager
2 415 Diamond Street
Redondo Beach, CA 90277
1.10 Building Operating Hours. Operating hours shall be the hours of 5:00 a.m. to 8:00 p.m.
Monday through Sunday ( except Building Holidays). " Building Holidays" shall mean the dates of observation of New Year' s Day, President' s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, Christmas Day, and Martin Luther King Jr. Day. These hours could change based on need. If changed, Tenant will be notified with 30 days’ notice.
1.11 Tenant Operating Hours. The Tenant Operating hours shall be per Tenant requirements that may require uses outside of Building Operating Hours.
1.12 Parking Spaces. Parking is open and non-exclusive.
1.13 Lease Exhibits. The Exhibits are attached to and made a part of this Lease.
1.14 Lease Controls. If there is any conflict between the Basic Lease Terms and the remaining provisions of the Lease, the remaining provisions of the Lease shall control.
2. The Premises. Landlord hereby leases to Tenant and Tenant hereby leases from Landlord the Premises as is.
3. Common Areas. The Premises shall include the appurtenant right to use, in common with others, lobbies, conference rooms, entrances, stairs, elevators and other public areas and facilities outside the Premises that are provided and designated by Landlord from time to time for the general use and convenience of Tenant and of other tenants of the Building and their respective authorized representatives, employees, invitees, licensees and other visitors (“ Common Areas”). Landlord shall not alter the Common Areas in a way which interferes with the normal conduct of Tenant’ s business or in any other manner that may adversely affect any of Tenant’ s rights under this Lease.
4. Use. Tenant may use the Premises for the purpose specified in Section 1.8 and any related uses, for any other purposes consistent with the use made by other tenants in the Building, for any use permitted by law or for any other purpose for which Landlord gives its reasonable consent.
5. Term
5.1 The term of this Lease extends until the date specified in Section 1.4 beginning on the Commencement Date as defined in Section 1.6, unless sooner terminated or extended by mutual agreement of the Parties.
5.2.2 Delivery of the Premises shall be deemed to occur when: ( a) Landlord delivers exclusive possession of the Premises to Tenant under this Lease in vacant as is condition, provided that Landlord shall broom- sweep the Premises, remove personal property and trash debris prior to delivery thereof; and b) Tenant has full access to the Premises, including without limitation all Building systems, including, without limitation, gas, electrical, water and sewer and other mechanical, electrical, and communication systems ( collectively, “ Building Systems”) have been connected to the Premises and are ready for use in the Premises.
5.3 If the Commencement Date is other than the first (1st) day of a calendar month, the term shall be extended by the minimum number of days necessary to allow the Lease term to expire on the last day of a calendar month. Once the Commencement Date is determined under this Section 5, Landlord and Tenant shall immediately execute Exhibit B, Confirmation of Lease Terms, to confirm the Commencement Date and the expiration date. The failure by either Landlord or Tenant to execute Exhibit B shall not be a default or otherwise affect any of the other obligations of the parties under this Lease. 3 6. Early Possession - Intentionally deleted.
7. Options to Extend Term - Intentionally deleted.
8. Rent.
8.1 During the term of this Lease, Tenant shall pay to Landlord without prior notice or demand, Rent in the amount specified in Section 1.5 (“Rent”), payable in lawful money of the United States. The Rent for the first partial month of the Term shall be prorated and shall be payable on or before February 17, 2026, and the Rent payable for all subsequent months of the Term shall be due on or before the first ( 1st) day of each calendar month. The Rent Commencement Date is specified in Section 1.7 hereof.
8.2 Rent for any period during the term which is less than one (1) month shall be prorated based on the number of days in that month. Rent shall be paid to Landlord at the address specified in Section 1.7 or at such other place as Landlord may from time to time designate in writing.
9. Full-Service Gross Lease. This Lease shall be a full-service gross lease with no annual true-up costs and Tenant shall have the option to receive janitorial services based on a mutually agreed upon price and scope of services.
10. Signs. Landlord shall, at its cost, maintain a directory per Landlord custom in the lobby of the Building exclusively for the display of the names of tenants in the Building and their respective suite numbers. Tenant may, at Tenant’ s cost, paint, attach, or affix reasonable signs identifying Tenant to the exterior of the Building and to the entrances to the Building and the Premises reasonably approved by the Landlord. These signs may include directional and identifying signs in the interior of the Building. Any sign must comply with all applicable laws, regulations, and ordinances. Landlord will cooperate with and assist Tenant in obtaining all necessary governmental permits and approvals.
11. Condition of Premises and Building - Intentionally Left Blank
12. Compliance with Laws
12.1 Tenant shall not use the Premises for any purpose that is prohibited by any law, statute, ordinance or governmental rule or regulation now in force, or that may be enacted or promulgated in the future. Tenant shall, at its expense, comply with all laws, statutes, ordinances, rules, regulations, or requirements of any duly constituted governmental or public authority now in force and with the requirements of any board of fire underwriters or other similar body now or hereafter constituted ( collectively laws”) relating to the operation of Tenant’ s business at the Premises; provided that Tenant shall not be required to comply with any laws requiring structural modifications, seismic upgrades, removal, remediation, or other actions with respect to Hazardous Material, capital repairs or capital expenditures to the Premises, Building, or Site. Landlord, at its expense and cost, shall: ( 1) comply with the requirements of the Americans with Disabilities Act (“ADA”) or other laws relating to handicapped access, except that Tenant shall comply with ADA requirements within the Premises resulting from Tenant’ s alterations, additions or improvements; and ( 2) comply with all laws requiring: capital repairs or improvements; structural modifications; seismic or life safety additions, improvements or upgrades; the removal, remediation and other actions related to Hazardous Materials, except to the extent that such Hazardous Materials have been first released into the environment by Tenant.
13. Utilities and Services
13.1 Landlord shall, at its expense, furnish the following services to the Premises during operating hours: elevator service, electricity for customary lighting and commercially reasonable business 4 machines and such additional electrical requirements as Tenant may require for its use; lighting replacement for all lights located within the Premises and Common Areas; customary and reasonable janitorial services for common areas only unless agreed to in writing by both Landlord and Tenant pursuant to the terms of this Lease; customary and reasonable life safety and security system; heat and air conditioning, water and sewer required for the comfortable use and occupancy of the Premises, and to the extent consistent with other first-class medical and office buildings in the area in which the Building is located, all subject to any applicable policies or regulations adopted by any utility or governmental agency.
Landlord also shall maintain and keep lighted the parking lot and the common stairs, entries and restrooms in the Building. Landlord shall be solely responsible, at its sole cost and expense, for all Operating Costs.
Operating Costs” shall mean all costs of operation and maintenance of the Building and Site, including maintenance, security guard and other service contracts; charges for heat, ventilation and air conditioning, light, power, water, sewer and waste disposal and other utilities furnished by Landlord and not furnished by Tenant or not otherwise billed directly to Tenant or to other tenants by Landlord; Real Property Taxes; materials, supplies, equipment; maintenance and repairs; insurance premiums related to the operation and maintenance of the Building and Site; license, permit and inspection fees; management fees, wages, salaries, and payroll of personnel engaged in the direct management, operation and maintenance of the Building. “ Real Property Tax,” as used in this Lease, shall include any and all real property taxes on the Site, Building and the land on which the Building is situated, general and special assessments, license fees, or any tax imposed in substitution, partially or totally, for any tax previously included within the definition of Real Property Tax and any increases in Real Property Taxes, during the term, that result from reassessment caused by any changes in ownership of the Building or other improvements, and/or land of which the Premises are a part or due to an expansion, renovation or redesign of the Common Areas and the Building or improvements made by other tenants in the Building. For purposes of this Lease, “ change in ownership” has the same definition as in California Revenue and Taxation Code, Sections 60 through 62, or any amendments or successor statutes to those Sections.
13.2 Operating hours are specified in Section 1.10. Tenant may elect to extend operating hours to meet Tenant’ s needs to any schedule including twenty-four (24) hours per day, seven ( 7) days per week, three hundred sixty-five (365) days per year.
13.3 Landlord shall not be liable for failure to furnish utilities or other services to the Premises when such failure is caused by casualties, accidents, breakage, repairs, strikes, lockouts or other labor disturbances of any character, or other events beyond the reasonable control of Landlord and not caused by the act or omission of Landlord, but in case of such failure, Landlord will take all reasonable steps to restore the interrupted utilities and services as soon as possible. Notwithstanding any other provision of this Lease, if any utility or other service to the Premises described in this Section 13 is interrupted due to the act or omission of Landlord, its agents, contractors, or employees, or if any utility service is interrupted due to any cause for more than two ( 2) business days, then Rent, and other charges payable under the Lease shall abate during any period that Tenant’ s use of the Premises is interrupted in proportion to the interference with Tenant’ s use and enjoyment of the Premises.
14. Maintenance and Repair
14.1 During the term of this Lease, Tenant shall, at Tenant’ s expense, maintain the Premises in a neat and orderly condition, ordinary wear and tear and damage from any casualty excepted.
14.2 Landlord, at its expense, shall: repair and maintain the exterior of the Building, including without limitation, the roof, floors, structural portions of the Building, including exterior walls ( including painting), foundations, exterior glass, exterior drainage systems, all exterior walkways and Common Areas, parking facilities and landscaped areas surrounding the Building, private roads and other avenues of ingress and egress, interior and exterior structural portions of the Premises, windows, heating, ventilating and air conditioning systems ( whether installed by Landlord or Tenant), plumbing, electrical and lighting systems, fire and life safety systems, and fixtures and all other mechanical portions of the Premises and Building. Landlord warrants that possession of the Premises shall be delivered to Tenant in good order, condition, and repair, broom- clean, watertight, and leak free. If repair or replacement is caused by the gross negligence of Tenant, then Tenant will be billed.
5 14.3 Landlord shall repair the Premises if they are damaged by: 1) causes outside the Premises over which Tenant has no control; 2) acts or omissions of Landlord, its employees, agents or authorized representatives; or 3) Landlord’ s failure to perform its obligations under this Section 14. All repairs which Landlord is required to make shall be prosecuted diligently, continuously, and as speedily as possible.
14.4 Tenant shall give Landlord notice of any repairs as may be required under the terms of this Section 14, and Landlord shall immediately commence to affect the same with reasonable diligence, but in no event later than two (2) days after having received notice. If there is an “emergency” ( as defined below), Tenant may make immediate repairs of such nature as would normally be Landlord’ s responsibility and notify Landlord promptly after such repairs have been undertaken. If Landlord fails to repair or maintain the Premises within the two ( 2) day period, or in the case of any emergency, Tenant may, but shall have no obligation to do so, perform the repairs or maintenance and deduct the cost thereof from the Rent next coming due. The term “ emergency” means those situations which, in Tenant’ s good faith judgment, represent a threat to the life, health, safety, or property of Tenant or Tenant’ s employees or invitees of such significance that immediate steps are necessary to remove the threat.
14.5 Landlord shall adequately secure the Building and properly light and landscape the same in accordance with first-class office/medical office buildings in the immediate area in which the Building is located and shall properly repair any damage to the Building.
14.6 Landlord shall use its best efforts to make any repairs, additions, or alterations to, about, or affecting the Premises or adjoining premises, during non-business hours and with as little interference to Tenant as practicable and shall promptly restore the Premises following any such work or activity.
Notwithstanding any other provision of this Lease, Rent shall abate during any period that Tenant’ s use of the Premises is interrupted in proportion to the interference with Tenant’ s use and enjoyment of the Premises taking into account the interference with Tenant’ s normal conduct of business and loss of profit resulting therefrom.
14.7 Except as otherwise provided, upon the expiration or earlier termination of this Lease, Tenant shall surrender the Premises in neat and orderly condition, ordinary wear and tear and damage by casualty, acts of God, or the elements and taking by condemnation excepted.
15. Alterations and Modifications
15.1 Tenant shall not make any alteration or modification to the Premises after the Commencement Date that substantially affects the structural, electrical, mechanical or life safety systems of the Building, without Landlord’ s prior written consent. Landlord’ s consent shall not be withheld if the proposed alterations or modifications are consistent with Tenant’ s permitted use under the Lease and are consistent with the structural, electrical, mechanical or life safety systems of the Building. All Tenant Improvements, alterations, additions or improvements installed by Landlord or Tenant shall be the property of Landlord and, at the expiration or earlier termination of this Lease, shall remain upon and be surrendered with the Premises. Alterations and modifications shall be done in a good and workmanlike manner, and diligently prosecuted to completion. Landlord, at Tenant’ s cost, shall cooperate with Tenant in securing building or other permits or authorizations required from time to time for any work permitted under this Lease.
15.2 During the term of this Lease, title to all alterations or improvements constructed or placed on the Premises by Landlord or Tenant, including but not limited to any tenant improvements, is and shall be vested in Landlord. All such alterations or improvements are deemed real property. Notwithstanding any other provision of this Lease, at the expiration or termination of this Lease, Tenant may remove all trade fixtures and other items including, but not limited to, computer terminals and equipment, telephone, telecommunications, life safety and security equipment, custom cabinetry, lockers, signage, medical equipment, systems or modular furniture ( e.g. Steelcase™ furniture, partitions) whether or not bolted or otherwise attached to the Premises, provided all resultant damage or injury to the Premises is repaired. 6 16. Liens
16.1 Tenant shall keep the Premises and the Building free of all liens resulting from or arising out of construction or other work done, materials furnished, or obligations incurred by or for Tenant. This obligation does not apply to Tenant Improvements to be constructed by Landlord or to any other work performed on the Premises by or for Landlord. Tenant shall give Landlord at least five (5) days’ notice prior to commencing any work in the Premises and Landlord shall have the right to post notices of nonresponsibility in or upon the Premises, as provided by law. If a mechanic’ s or other lien is filed against the Premises or the Building as a result of a claim arising through Tenant’ s own activities, Tenant shall promptly cause such lien to be released of record or diligently contest the validity of the claim.
16.2 Landlord represents and warrants to Tenant that Landlord will pay each of its subcontractors, materialmen and suppliers all amounts due to them, when due, for any labor, materials or equipment provided by each such subcontractor, materialman or supplier on account of the Tenant Improvements or other work by Landlord and Landlord agrees to indemnify and hold Tenant harmless from and to defend Tenant against any liabilities, liens, claims, demands, costs or expenses, including court costs and attorneys’ fees, arising out of or connected with Landlord’ s construction of the Tenant Improvements or other work performed by Landlord.
17. Assignment and Subletting
17.1 Tenant may, without Landlord’ s consent, license or sublease all or a portion of the Premises to Clear Recovery Center LLC or its affiliate, or otherwise allow Clear Recovery Center LLC or its affiliate to occupy or use all or any part of the Premises.
17.2 Except as provided in paragraph 17.1, Tenant shall not voluntarily assign or encumber its interest in this Lease or in the Premises, or sublease all of any part of the Premises, or allow any other person or entity to occupy or use all or any part of the Premises without Landlord’ s prior written consent, which consent shall not be unreasonably withheld. Consent to any such assignment or subletting shall not operate as a waiver of the necessity for a consent to any subsequent assignment or subletting.
17.3 Landlord shall respond to Tenant’ s request for any required consent in a timely manner.
18. Holding Over. If Tenant holds possession of the Premises or any portion thereof after the date upon which the Premises are to be surrendered, Tenant will become a tenant on a month-to-month basis upon all the terms, covenants and conditions of this Lease until the tenancy is terminated by either Landlord or Tenant upon thirty ( 30) days’ prior written notice given at any time to the other party and pay Rent at 125% of the rate set forth in Section 1.5 hereof.
19. Insurance.
19.1 Insurance Premiums. The cost of the premiums for the insurance policies maintained by Landlord pursuant to this Section 19 are paid for by Landlord.
19.2 General Liability Insurance.
a) Carried by Tenant. Tenant shall keep the Premises adequately insured at all times during the term of the Lease and will carry and maintain such General Liability insurance in with limits no less than $2,000,000 per occurrence including products and completed operations, property damage, bodily injury. This insurance may include alternative risk management programs, including self-insurance and Landlord hereby consents thereto.
Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:
Additional Insured Status
7 The Landlord, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Tenant including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Tenant’ s insurance ( at least as broad as ISO Form CG 20 10 or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 if a later edition is used).
Notice of Cancellation
Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the Landlord unless replaced with similar coverage.
Waiver of Subrogation
Lessee hereby grants to Landlord a waiver of any right to subrogation which any insurer of said Lessee may acquire against the Landlord by virtue of the payment of any loss under such insurance. Lessee agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the Entity has received a waiver of subrogation endorsement from the insurer.
b) Carried by Landlord. Landlord shall maintain liability insurance as described in Paragraph
19.2(a), in addition to, and not in lieu of, the insurance required to be maintained by Tenant.
Tenant shall not be named as an additional insured therein.
19.3 Property Insurance - Building, Improvements and Rental Value. a) Building and Improvements. Landlord shall obtain and keep in force a policy or policies of insurance in the name of Landlord, with loss payable to Landlord, any ground- Landlord, and to any Lender insuring loss or damage to the Building and/or Project. The amount of such insurance shall be equal to the full insurable replacement cost of the Building and/or Project, as the same shall exist from time to time, or the amount required by any Lender, but in no event more than the commercially reasonable and available insurable value thereof. Tenant Owned Alterations and Utility Installations, Trade Fixtures, and Tenant' s personal property shall be insured by Tenant not by Landlord. If the coverage is available and commercially appropriate, such policy or policies shall insure against all risks of direct physical loss or damage ( except the perils of flood and/or earthquake unless required by a Lender), including coverage for debris removal and the enforcement of any Applicable Requirements requiring the upgrading, demolition, reconstruction or replacement of any portion of the Premises as the result of a covered loss. Said policy or policies shall also contain an agreed valuation provision in lieu of any coinsurance clause, waiver of subrogation, and inflation guard protection causing an increase in the annual property insurance coverage amount by a factor of not less than the adjusted U.S. Department of Labor Consumer Price Index for All Urban Consumers for the city nearest to where the Premises are located.
b) Rental Value. Landlord shall also obtain and keep in force a policy or policies in the name of Landlord with loss payable to Landlord and any Lender, insuring the loss of the full Rent for one year with an extended period of indemnity for an additional 180 days (" Rental Value insurance"). Said insurance shall contain an agreed valuation provision in lieu of any coinsurance clause, and the amount of coverage shall be adjusted annually to reflect the projected Rent otherwise payable by Tenant, for the next 12-month period. c) Adjacent Premises. Tenant shall pay for any increase in the premiums for the property insurance of the Building and for the Common Areas or other buildings in the Project if said increase is caused by Tenant' s acts, omissions, use or occupancy of the Premises.
19.4 Insurance Policies. Insurance required herein shall be by companies maintaining during the policy term a "General Policyholders Rating" of at least A-, VII, as set forth in the most current issue of "Best's Insurance Guide", or such other rating as may be required by a Lender. Tenant shall not do or permit to be done anything which invalidates the required insurance policies. Tenant shall, prior to the Start Date, 8 deliver to Landlord or certificates with copies of the required endorsements evidencing the existence and amounts of the required insurance.
19.5 Landlord and its insurers waive as against Tenant all claims and demands for damage, loss, or injury to the Premises, or to furnishings, business machines, equipment, and other property in the Premises and the Building, which damage results from fire and other perils, events or happenings to the extent of the insurance coverage required under this Lease.
20. Indemnity. Tenant shall indemnify, defend and hold Landlord harmless from all liabilities, claims, demands, losses, costs, and expenses, including reasonable attorneys’ fees, arising out of injuries to any person or damage to property occurring on the Premises or the Building arising from the negligent acts or omissions of Tenant, its agents or contractors. Landlord shall indemnify, defend and hold Tenant, and its officers, directors, and employees, harmless from and against any and all liabilities, claims, demands, losses, costs and expenses, including reasonable attorneys’ fees which arise out of injuries to any person or property damage occurring on the Premises or the Building arising from the acts or omissions of Landlord, its agents, employees, or contractors, occurring on or about the Premises or the Building, Landlord’ s ownership of the Building or Landlord’ s breach of the covenants or warranties contained in the Lease.
21. Entry by Landlord. Landlord may enter the Premises, except for Tenant’ s security areas and patient treatment areas in use, at all reasonable times, and upon reasonable prior notice to: ( a) perform maintenance or repairs required by the Lease; ( b) post notices to protect Landlord’ s rights; and ( c) show the Premises to prospective purchasers, lenders, or tenants during the last six ( 6) months of the term or any extension thereof. Landlord entry under this Section 21 will be made with minimum interference with Tenant’ s use of the Premises.
22. Quiet Enjoyment. Tenant, by paying Rent and performing all terms and conditions of this Lease, shall peaceably and quietly have, hold, and enjoy the Premises with all appurtenances thereto for the term of this Lease and any extensions thereof, without any manner of hindrance of or interference with its quiet possession, enjoyment, or use by Landlord or any other party, whether or not claiming under or through Landlord. Landlord warrants that as of the date of this Lease, the rights of any other party to possess the Premises shall have been terminated.
23. Nondisturbance and Subordination. If a lender requires that this Lease be subordinate, then upon Landlord' s delivery to Tenant of an executed nondisturbance agreement in the form approved by Tenant shall be subordinated to such lender.
24. Transfer of Landlord' s Interest. If Landlord sells or conveys its interest in the Premises or the Building, this Lease shall not be affected by any such sale and Tenant shall attorn to any purchaser or assignee. Landlord shall be relieved from and after the date specified in any notice of transfer of all obligations and liabilities accruing thereafter on the part of Landlord. This Section 24 is contingent upon the assumption by such purchaser or transferee of all of Landlord' s obligations under the Lease and Landlord' s delivery of all funds in which Tenant has an interest to the transferee and does not apply to a transfer for security purposes only.
25. Estoppel Certificate. Landlord or Tenant, as the case may be, shall from time to time within thirty 30) days after receipt of request from the other party, execute, acknowledge, and deliver to such party a statement in writing, in the form mutually agreed to by the parties, certifying that: (a) this Lease is unmodified and in full force and effect ( or, if modified, stating the date and nature of such modification and certifying that this Lease, as so modified, is in full force and effect); ( b) the date to which the Rent and other sums payable under the Lease, have been paid; and ( c) acknowledging that there are not, to the knowledge of the party delivering the certificate, any uncured defaults on the part of the other party, or specifying such defaults if any are claimed. Any such statement may be relied upon by the party requesting the certificate and by any prospective purchaser or encumbrancer of the Building or the Premises. 9 26. Default. Any of the following shall constitute a material default and breach of this Lease by Tenant:
26.1 Tenant' s failure to pay Rent or to make any payment of money required under this Lease within thirty (30) business days after Tenant' s receipt of written notice from Landlord specifying such failure.
26.2 Tenant' s abandonment or vacation of the Premises for more than thirty (30) days without payment of Rent.
26.3 Tenant' s failure to observe and perform any other provision of this Lease to be observed or performed by Tenant where such failure continues for thirty ( 30) days after written notice thereof by Landlord to Tenant except that if the nature of the default is such that the same cannot be reasonably be cured within thirty (30) days, Tenant shall not be deemed to be in default if Tenant shall within such period commence such cure and thereafter diligently prosecute the same to completion.
27. Remedies On Default
If Tenant defaults, in addition to any other remedies available to Landlord herein or at law or in equity, Landlord shall have the option to:
27.1 Maintain this Lease in full effect and recover the Rent and other monetary charges as they become due, without terminating Tenant' s right to possession. If Landlord elects not to terminate this Lease, Landlord may attempt to relet the Premises at such Rent and upon such conditions and for such a term and to do all acts necessary to relet the Premises, including removal of all persons and property from the Premises, without being deemed to have elected to terminate this Lease; such property may be removed and stored in a public warehouse or elsewhere at the cost of and for the account of Tenant. If any such reletting occurs, this Lease shall terminate automatically at the time the new tenant takes possession of the Premises.
27.2 Terminate this Lease by any lawful means, in which case this Lease shall terminate, and Tenant shall surrender possession of the Premises to Landlord. If Landlord elects to terminate this Lease, then Landlord may recover from Tenant:
27.2.1 The worth at the time of award of any unpaid Rent which had been earned at the time of such termination; plus
27.2.2 The worth at the time of award of the amount by which any unpaid Rent which had been earned after termination until the time of the award exceeds the amount of such rental loss that Tenant proves could have been reasonably avoided.
27.2.3 The worth at the time of award of the amount by which the unpaid Rent for the balance of the term after the time of award exceeds the amount of such rental loss that Tenant proves could be reasonably avoided.
27.2.4 As used in this Lease the "worth at the time of the award" is computed by allowing interest at the legal rate and by discounting such amount at the discount rate of the Federal Reserve Bank for the region in which the Building is located at the time of award plus one percent ( 1%).
27.2.5 The term "rent” used in this Section shall be deemed to mean the set Rent and all other sums required to be paid by Tenant pursuant to the terms of this Lease.
28. Damage or Destruction
28.1 Except as otherwise provided in this Section 28, if the Premises or Building are totally or partially destroyed from any cause, rendering the Premises totally or partially inaccessible or unusable, 10 Landlord shall promptly restore the Premises and the Building (including without limitation any parking areas or facilities, whether or not a part of the Building) and Tenant Improvements to substantially the same condition as they were in immediately before the destruction including modifications required to comply with then effective building codes and other applicable laws and regulations and such destruction shall not terminate this Lease.
28.2 Within thirty (30) days after the occurrence of any destruction, Landlord shall notify Tenant of the estimated time required for the restoration of the Premises and the portion of the Building necessary for Tenant' s occupancy and all parking to which Tenant is entitled under the Lease. Landlord' s estimate shall be made in good faith and based upon reasonable estimates and contractors' bids. If the estimated time for restoration is in excess of ninety ( 90) days after the date of destruction, Tenant may terminate this Lease effective as of the date of destruction by giving written notice to Landlord. If Tenant does not terminate this Lease and if restoration is permitted under the existing laws, Landlord shall restore the Premises and the Building within a reasonable time not to exceed one hundred eighty ( 180) days after the date of destruction and this Lease shall continue in full force and effect. If Landlord does not complete the restoration of the Premises and Building within one hundred eighty ( 180) days after the date of destruction, then Tenant may terminate this Lease as of the date of destruction by written notice given to Landlord at any time thereafter.
28.3 If the Lease is terminated under this Section 28, Landlord shall, within thirty (30) days after the termination date, refund to Tenant the prorated Rent for the remainder of the month in which the destruction occurred, any prepaid Rent and all other monies advanced by Tenant.
28.4 In all cases of damage or destruction to the Premises or Building, Tenant shall be entitled to a proportionate reduction of Rent, Real Property Taxes, and all other charges under the Lease until the Premises are restored. The reduction shall be based on the extent to which the Premises, Building and parking, in Tenant' s reasonable judgment, are unusable or inaccessible by Tenant, including without limitation, Tenant' s parking rights.
28.5 Notwithstanding anything to the contrary contained in this Section 28, Landlord shall not be obligated to repair, reconstruct or restore the Premises or Building when the damage or destruction occurs during the last twelve ( 12) months of the term of this Lease and Tenant does not elect to exercise any option to extend the Lease term.
28.7 If Landlord is required or elects to restore the Premises as provided in this Section 28, Landlord shall, at its expense, restore the Tenant Improvements and other alterations to the Premises, but shall not be required to restore Tenant' s trade fixtures, and Tenant' s personal property.
28.8 Landlord and Tenant hereby waive the provisions of California Civil Code Sections 1932( 2) and 1933( 4) or any successor statute relating to termination of leases when the thing leased is destroyed and agree that such event shall be governed by the terms of this Lease. If the Building or the Premises are destroyed, this Lease shall terminate automatically, effective as of the date of destruction.
29. Condemnation
29.1 If the Premises or parking spaces under this Lease are taken for any public or quasi-public use under any statute or by right of eminent domain, then this Lease shall terminate as of the date of such taking. If there is a partial taking of the Premises or of the Building and the area remaining cannot be reasonably used by Tenant without frustrating or impeding Tenant' s intended use of the Premises, including parking areas, in Tenant' s reasonable judgment, Tenant may, within thirty (30) days after receipt of notice of such taking, terminate this Lease as of the date on which possession is taken by the condemning authority. If Tenant does not exercise its right to terminate, then this Lease shall remain in full force and effect except that Tenant' s Rent, Real Property Taxes, and other charges under this Lease shall be reduced proportionately due to any partial or temporary taking which does not result in termination of this Lease. 11 29.2 Tenant shall be entitled to receive the part of the award attributable to or prosecute a direct claim against the condemning authority, if necessary, for: a) Tenant' s loss of business; b) the cost of Tenant financed alterations or improvements paid for by Tenant in excess of any Tenant Improvement Allowance or other amounts paid by Landlord for alterations or improvements; c) the cost of removal of improvements, trade fixtures, furniture and other personal property belonging to Tenant; d) relocation costs; e) the market value of the Lease, including the excess of the fair rental value of the Premises over the actual net received under the Lease; f) compensation for loss of goodwill; and g) any other amounts to which Tenant is entitled under applicable law.
30. Attorney Fees and Costs. If either party commences an action or proceeding to determine or enforce its rights under this Lease, the prevailing party shall be entitled to recover from the losing party all expenses reasonably incurred, including court costs, reasonable attorneys' and accountant' s fees and costs of suit as determined by the court.
31. Remedies Cumulative. All remedies of Landlord and Tenant under this Lease are cumulative.
32. Time of the Essence. Time is of the essence of this Lease and of each covenant, term, and condition hereof.
33. Brokers. There is no brokerage fee or commissions arising from this Lease.
34. Notices. All notices or demands to be given by either party to the other shall be in writing and shall be deemed sufficiently given either when delivered in person, two (2) business days after emailing, provided that no “ bounce- back” or similar message indicating non-delivery is received, or two ( 2) days after being sent by certified mail, return receipt requested, postage prepaid, or by a national air courier company that provides signature verification of delivery to recipient, to the respective parties at the addresses provided in above in this Lease. The address to which any notice or demand may be given to either party may be changed from time to time by written notice to the other.
35. Reasonableness. The parties shall always act prudently, fairly, equitably, reasonably, promptly and in good faith in dealing with one another under this Lease and shall not unreasonably withhold or delay any consents, approvals, authorizations, exercises of discretion, exercises of judgment or the like provided in this Lease.
36. Waiver. No covenant, term, or condition of this Lease may be waived except by written consent of the party against whom the waiver is claimed and the waiver of any term, covenant, or condition of this Lease shall not be deemed a waiver of any subsequent breach of the same or any other term, covenant, or condition of this Lease.
37. Days. As used in this Lease, the term " day" shall mean calendar day unless specifically indicated otherwise.
38. Binding on Successors. Except as otherwise provided, this Lease is binding on and will inure to the benefit of the respective successors and assigns of Landlord and Tenant.
39. Rules of Construction. This Lease is to be construed as a whole, according to its fair meaning, and not strictly for or against either Tenant or Landlord. The Section headings are for convenience only and are not a part of this Lease and do not limit or amplify its provisions. The invalidity of any provision of this Lease, as determined by a court of competent jurisdiction, shall not affect the validity of any other provision hereof.
40. Applicable Law. The existence, validity, and construction of this Lease shall be determined in accordance with the laws of the state of California.
41. Counterparts; Electronic Delivery. This Lease may be executed in several counterparts and all such executed counterparts shall constitute one ( 1) agreement binding on all of the parties in spite of the 12 fact that all of the parties have not signed the same counterpart. This Lease may be delivered via facsimile transmission or in electronic " pdf" or similar format with the same force and effect as if originally executed copies of it were delivered to all parties.
42. Representations of Authority. The execution, delivery and performance of this Lease by Landlord and Tenant have been duly and validly authorized by all necessary action and proceedings, and no further action or authorization is necessary on the part of either Landlord or Tenant in order to consummate the transactions contemplated herein.
43. Cumulative Remedies. The various rights, options, elections, powers and remedies contained in this Lease shall be construed as cumulative, and no one of them shall be exclusive of any of the others or of any other legal or equitable remedy which either party might otherwise have in the event of a breach or default in the terms of this Lease. The exercise of one right or remedy by such party shall not impair its right to any other right or remedy until all obligations imposed on the other party have been fully performed.
44. Complete Agreement. This Lease and the attached exhibits contain the entire agreement between the parties and supersede all prior agreements or understandings between the parties and may not be amended except by a written agreement signed by the parties.
Signatures to follow on the next page)
13 IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease on the day and year indicated.
AGREED:
Beach Cities Health District ( BCHD),
a California Health District
By: ________
Name: Tom Bakaly
Its: Chief Executive Officer
AGREED:
City of Redondo Beach,
a California charter city and municipal corporation
By:
Name:
Its:
ATTEST:
Eleanor Manzano, City Clerk
APPROVED:
Diane Strickfaden, Risk Manager
APPROVED AS TO FORM:
Joy A. Ford, City Attorney
2/ 3/ 2026 | 6: 43 PM PST
2/ 10/ 2026 | 9: 36 AM PST
2/ 25/ 2026 | 2: 32 PM PST
2/ 26/ 2026 | 7: 53 PM PST
Mayor
James A. Light
2/ 27/ 2026 | 8: 05 AM PST
Exhibit A
EXHIBIT A
PREMISES
FLOOR PLAN
INCLUDES LANDLORD FURNITURE
EXHIBIT B
EXHIBIT B
CONFIRMATION OF LEASE TERMS
This Confirmation of Lease Terms is made as of February 17, 2026, by and between Beach Cities Health District ( BCHD), a California Health District (" Landlord"), and the City of Redondo Beach, a California charter city and municipal corporation, (" Tenant") who agree as follows:
1. Landlord and Tenant entered into a Lease dated February 17, 2026 ( the " Lease"), for the Premises.
All terms not defined herein shall have the meanings as set forth in the Lease.
2. Landlord and Tenant confirm the items marked below:
a. The Commencement Date is February 17, 2026.
b. The Rent Commencement Date is February 17, 2026.
c. The Lease term will expire on September 9, 2026, unless terminated or extended by mutual agreement of the Parties.
AGREED:
Beach Cities Health District ( BCHD),
a California Health District
By:______________________________
Name: Tom Bakaly
Its: Chief Executive Officer
AGREED:
City of Redondo Beach,
a California charter city and municipal corporation
By:
Name:
Its:
2/ 3/ 2026 | 6: 43 PM PST
James A. Light
2/ 27/ 2026 | 4: 58 PM PST
Mayor