AMENDMENT TO LEASE
WHEREAS the STATE OF CALIFORNIA, acting by and through its DEPARTMENT OF TRANSPORTATION (“Caltrans”), hereinafter called “Landlord,” is the owner of that certain real property on which the CITY OF STOCKTON, hereinafter called “Tenant” has leased to build and operate a shelter and feeding program for the homeless; WHEREAS a shelter has existed onsite since 1987 pursuant to Streets and Highways Code 104.17; WHEREAS the most current lease was signed January 1, 2018, and expiring on December 31, 2027, (the “Lease”); WHEREAS the City of Stockton would like to expand the capacity for services at 411 S. Harrison St., Stockton, CA 95203; WHEREAS Caltrans seeks to be a good partner in this endeavor; WHEREAS the City of Stockton has found an expansion of the shelter to be necessary and has adopted Shelter Crisis Declaration Resolution No. 2018-08021-1402-02; NOW, THEREFORE, Landlord and Tenant do enter into this Amendment of the Right of Way Use Agreement dated ____________________, pursuant to Streets and Highways Code 104.17.
TERM. The Lease term shall be extended for a period of 15 years and shall now expire on December 31, 2042. The additional rent required for the 15-year period is $7,680.00, payable in advance.
TENANT OPTION TO EXTEND. Tenant may extend the term of the Lease for an additional period of 10 years by written notice to Landlord sent prior to the end of the term, which shall cause the lease to expire on December 31, 2052. Such written notification must be accompanied by additional rent in the amount of $5,120.00 for the 10-year period.
FHWA APPROVAL This Lease Amendment is subject to approval by the Federal Highway Administration (FHWA), since Premises are located on an Interstate, and rent is less than fair market value.
ARTICLE 5 IS AMENDED TO INCLUDE No new vertical improvements of any kind shall be placed in, on, or upon the Premises, and no alterations to vertical improvements shall be made in, on, or upon the Premises without the prior written consent of Landlord and the concurrence of FHWA.
ARTICLE 6, SECOND SENTENCE OF LEADING PARAGRAPH, IS AMENDED TO READ, “Existing Improvements include: the CMU facility with metal roof as the men’s sleeping dormitory; two metal buildings that are the Family Clothing, Hygiene Center, and Donation Intake; a dental clinic that is modular construction; an administration building that is modular construction; a social services building that is modular construction; an Early Head Start Program with a Preschool that is modular construction; and a kitchen and dining room that is brick construction; landscaping, trees, bushes and asphalt driveway/parking lot within the lease area.
Improvements to be built and maintained through this amendment include a pre-fab, 3-story building to be used as Navigation Center, exam area, case management, counseling rooms, executive and administrative offices, dormitory, isolation, couples sleeping area, laundry, bathrooms, and showers.” PURSUANT TO ARTICLE 7.2 Any improvements, signs, or other appurtenances placed on the Premises by Tenant under this lease are the personal property of Tenant and shall be removed at the expiration or earlier termination of this Lease.
ARTICLE 7.2 IS AMENDED TO INCLUDE Removal of Tenant’s personal property and improvements shall be at no cost to FHWA.
SECTION 9.1 IS AMENDED TO INDEMNIFY FHWA in equal effect and force to Landlord and all of its officers and employees SECTION 9.2.B IS AMENDED TO READ The parties to the original agreement and this written amendment do hereby agree that Comprehensive General Liability Insurance coverage amount shall be increased to $20 million per occurrence and aggregate limits as a result of the increased size, capacity, and height of the expansion. The Tenant will provide insurance for bodily injury liability and property damage liability, and including but not limited to coverage for:
1. Premises, operations and mobile equipment
2. Products and completed operations
3. Broad form property damage (including completed operations)
4. Explosions, collapse, and underground hazards
5. Personal Injury
6. Contractual liability
SECTION 9.2.C. IS AMENDED TO READ The Landlord acknowledges that Tenant may desire to self-insure, which may be approved with the prior written agreement of Landlord. If such approval is given, the letter documenting Tenant’s self-insurance will appear as an exhibit to this Amendment. Reasonable self-insurance programs and self-insured retentions in insurance policies are permitted by Landlord. If Tenant uses a self-insurance program or self-insured retention, Tenant must provide Landlord with the same protection from liability and defense of suits as would be afforded by first-dollar insurance. Tenant shall certify its intent to self-insure, in writing, in amounts meeting the requirements of this Lease prior to execution of this Lease. The certification does not negate or override Tenant’s responsibility to provide insurance or self-insurance coverage in the amounts set forth in Article 9.2 of the Lease, nor shall it operate or be interpreted to limit in any way Tenant’s indemnification obligations in this Lease. Further, execution of this Agreement is Tenant’s acknowledgment that Tenant will be bound by all laws as if Tenant were an insurer as defined under Insurance Code Section 23 and Tenant’s self-insurance program or self-insured retention shall operate as insurance as defined under Insurance Code Section 22. Tenant shall notify Landlord in writing not less than thirty (30) days prior to the effective date of the termination of its self-insurance coverage and shall obtain the insurance coverage required by Article 9.2 effective on that termination date.
Other Sections of Article 9 not addressed in this amendment remain in full force and effect.
ARTICLE 18 IS AMENDED TO INCLUDE This Amendment along with the Right of Way Use Agreement signed January 1, 2018, and any exhibits and attachments hereto constitutes the entire Agreement between Landlord and Tenant relative to the Premises. No prior promises or agreements have been made by Landlord and Tenant which are not referenced in this Lease, and no evidence of prior agreements shall be admissible to prove the respective obligations under this Lease.
ARTICLE 18 IS AMENDED TO INCLUDE This agreement, including all the exhibits and attachments hereto, may be altered, amended or revoked only by an instrument in writing signed by both Landlord and Tenant which specifically references this Lease and states the intention to alter or amend its terms. Landlord and Tenant agree that all prior or contemporaneous oral agreements between and among themselves and their agents and representatives relative to the leasing of the Premises are merged in or revoked by this agreement.
ARTICLE 18 IS AMENDED TO INCLUDE The remainder of this Lease shall not be affected thereby, and each term and provision of this Lease shall be valid and enforceable to the fullest extent permitted by law.
In Witness Whereof Landlord and Tenant have executed this Amendment as of the date first written above.
Dated: Dated:
LANDLORD TENANT
STATE OF CALIFORNIA
BY AND THROUGH THE
DEPARTMENT OF TRANSPORTATION
By: _______________________________ By ____________________________
HARRY BLACK
Title City Manager
4 EXHIBIT 1
Caltrans: 10-SJX005-0100-01
EXHIBIT 1
Caltrans: 10-SJX005-0100-01