THIRD AMENDMENT TO LEASE AGREEMENT
BY AND BETWEEN
THE CITY OF RIVERSIDE AND
NEWMAN BROS. OF CALIFORNIA, INC., dba
A-1 GRIT COMPANY
(1901 Massachusetts)
THIS THIRD AMENDMENT TO LEASE ("Third Amendment"), is made and entered into this day of _ 2023, by and between the CITY OF
RIVERSIDE, a California charter city and municipal corporation, hereinafter referred to as "Lessor" and NEWMAN BROS. OF CALIFORNIA, INC, a California corporation dba A-1 GRIT COMPANY, herein referred to as "Lessee" with respect to the following facts:
RECITALS
WHEREAS, on or about September 20, 2006, Gaylor W. Singletary and A-1-GRIT COMPANY entered into that certain Lease Agreement ("Lease") for a portion of the property at 1901 Massachusetts Avenue through October 31, 2016 with one five-year option to extend the lease term ("Renewal Term"); and
WHEREAS, on or about February 21, 2007, G.W. Singletary, Trustee of the G.W., Singletary 1998 Living Trust, assigned said Lease to the City of Riverside; and WHEREAS, on or about May 19, 2011, the parties entered into a First Amendment to Lease Agreement ("First Amendment") to amend the Lease to include an additional Renewal Term, on the same terms and conditions as set forth in the Lease; and WHEREAS, on or about December 8, 2016, the parties entered into a Second Amendment to Lease Agreement ("Second Amendment") to amend the Lease to include an additional Renewal Term, on the same terms and conditions as set forth in the Original Lease, and to amend the monthly rent amount; and
WHEREAS, the parties desire to amend the Lease to add five additional Renewal Terms, on the same terms and conditions as set forth in the Original Lease.
NOW, THEREFORE, in consideration of the foregoing recitals which are incorporated herein by this reference, Lessor and Lessee agree as follows:
1. Section 2 of the Original Lease entitled "Term" is amended to strike the existing subparagraph (a) and replace with the following subparagraph (a):
"(a) Lessee is hereby granted an exclusive option to extend this Lease for Nine (9) Renewal Terms of five (5) years each, as follows;
Renewal Term 1: November 1, 2016 - October 31, 2021
Renewal Term 2: November 1, 2021 - October 31, 2026
Renewal Term 3: November 1, 2026 - October 31, 2031
Renewal Term 4: November 1, 2031 - October 31, 2036
Renewal Term 5: November 1, 2036 - October 31, 2041
Renewal Term 6: November 1, 2041 - October 31, 2046
Renewal Term 7: November 1, 2046 - October 31, 2051
Renewal Term 8: November 1, 2051 - October 31, 2056
Renewal Term 9: November 1, 2056 - October 31, 2061
The Renewal Terms shall be governed by the same terms as set forth in this Lease. This Lease shall automatically renew, and the Term shall renew automatically without any further action by the parties hereto, unless Lessee provides Lessor with prior written notice of Lessee's election not to renew the Lease for the Renewal Term at least sixty (60) days prior to the expiration of the Term."
2. Paragraph 4 of the Lease entitled "Consideration" is amended to replace "Los Angeles-Anaheim-Riverside area index" with "Riverside-San Bernardino-Ontario, CA area index," as of the effective date of that index.
3. Paragraph 22 of the Lease entitled "Consumer Price Index Increase" is amended to add the following new paragraph:
"For the time period beginning November 1, 2026 through October 31, 2031, and every subsequent Renewal Term thereafter, the Lessee shall pay each year to Lessor, in addition to the monthly rental payment provided for herein, and for each twelve (12) months thereafter, increased rental shall be based on an annual two percent (2%) increase."
4. Paragraph 23 of the Lease entitled "Transfer by Lessee" is amended to strike "that purchases all or substantially all if the assets or business of Lessee." The parties acknowledge that Renewal Term 2 has been triggered, extending the Lease term to October 31, 2026.
All terms and conditions of the aforementioned Lease, as amended, not inconsistent with this Third Amendment, shall remain in full force and effect and are incorporated herein by this reference as if set forth in full. [signatures on next page]
2 IN WITNESS WHEREOF, Lessor and Lessee have caused this Third Amendment to Lease to be duly executed on the day and year first above written.
CITY OF RIVERSIDE, a California NEWMAN BROS. OF CALIFORNIA, charter city and municipal corporation INC., a California corporation dba A-1 GRIT COMPANY
By: vans A Mechnice 9/29/23
City Manager
[Name and Title]
Attest:
City Clerk
APPROVED AS TO FORM: Brad dune C70
Susan Hebra C.7.0. 9/29/23
By:
Susan Wilson
Assistant City Attorney
CA 06-1921.6 SDW/jv 9/27/23
IIRc-citylawlcycom\WPDOCS\D020\P039\00747267.DOC
CERTIFIED AS TO FUNDS AVAILABILITY:
BY: _ ISSANCHE
CHIEF FINANCIAL OFFICER
3