RENT WAIVER AND FACILITY EXPENSE AGREEMENT BETWEEN
THE CITY OF SAN MATEO
AND
PAR3SM, LLC
This Rent Waiver and Facility Expense Agreement (the “AGREEMENT”) is made on this day ______________ , by and between THE CITY OF SAN MATEO, a municipal corporation (“LANDLORD”) and PAR3SM, LLC, a limited liability company (“TENANT”). Collectively, LANDLORD and TENANT are referred to herein as the “PARTIES”, and this AGREEMENT is made to address lease obligations for the TENANT’S occupancy and leasing of real property known as Par 3 Restaurant located at the Poplar Creek Golf Course at 1700 Coyote Point Drive San Mateo, CA 94401 (the “PREMISES”).
RECITALS
A.WHEREAS, TENANT’S occupancy of the PREMISES is based upon a LEASE (the “LEASE”) executed on April 3, 2019; and
B.WHEREAS, on October 11, 2024, the LANDLORD red tagged the building the TENANT occupies on the PREMISES; and
C.WHEREAS, since October 11, 2024; the LANDLORD has deemed the building the TENANT occupies on the PREMISES to pose a public health emergency and unsafe to occupy; and D.WHEREAS, as a result of the public health emergency, indoor restaurant operations have been prohibited; and
E.WHEREAS, the TENANT is unable to pay base rent or utility and sewer service expenses based on its inability to conduct indoor restaurant operations; and F.WHEREAS, the LANDLORD recommends the utility services for the PREMISES remain on; and G.WHEREAS, the PARTIES desire to waive payment of base rent and for LANDLORD to reimburse TENANT for utility and sewer service expenses until the building on the PREMISES is safe to occupy again; and
NOW, THEREFORE, in consideration of the promises, terms, and conditions contained herein and such other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the PARTIES agree as follows:
1. Incorporation by Reference. Each and all of the Recitals are incorporated as terms of this AGREEMENT.
2. Rent Waiver and Facility Expenses.
a. Rent Payment October 2024. The payment of rent due for October 2024 will be pro-rated.
Rent payment will be subject to the terms in the lease executed on April 3, 2019. TENANT will pay rent on sales from October 1, 2024 to October 10, 2024 only. Rent for October 11, 2024 to October 31, 2024 will be waived.
b. Rent Payments Beginning November 1, 2024. Beginning November 1, 2024, TENANT’s payment of rent is waived until the indoor portion of the restaurant (including the bar, restaurant, and banquet facility) is authorized by LANDLORD as safe to occupy. (“Percentage Rent Trigger”). On the first day of the first month after the Percentage Rent Trigger, TENANT will pay percentage rent as described in the LEASE. c. Sewer Service Charges for 2024-2025. LANDLORD will pay 100% of the sewer service charges starting October 11, 2024, until TENANT is given the authorization to return for occupancy.
d. Utility Service Charges. LANDLORD will re-imburse TENANT 100% of the power, gas, and water service charges while the building is not able to be occupied by the TENANT.
3. Construction. This AGREEMENT shall not be construed against the party preparing it, but shall be construed as if all PARTIES jointly prepared this AGREEMENT without any uncertainty or ambiguity being interpreted against any one party.
4. Severability. If any provision of this AGREEMENT or its application to any party or circumstance is held invalid or unenforceable, the remaining provisions of this AGREEMENT and the application of such provisions to other parties or circumstances shall not be affected thereby, the provisions of this AGREEMENT being severable in any such instance.
IN WITNESS WHEREOF, the PARTIES have executed this AGREEMENT as of the day and year first above written.
LANDLORD:
THE CITY OF SAN MATEO,
a municipal corporation
TENANT:
PAR3SM, LLC
a California limited liability company
By: _________________________
Name: Alex Khojikian
Title: City Manager
By:
Name: Alicia Petrakis
Its: Owner
APPROVED AS TO FORM:
________________________________
Prasanna Rasiah
City Attorney