2026 COMMERCIAL LEASE AGREEMENT
FOR LINDEN LIBRARY
This Lease ("Agreement") is made and entered into on _______________________ by and between the City of Stockton, a municipal corporation organized and existing under the laws of the State of California on behalf of the Stockton -San Joaquin County Public Library System (Lessee) and Magnasco Investments , a California General Partnership ("Lessor") for the purpose and use as a library facility. The Lessor and Lessee may be referred to collectively as "Parties" or in the singular as "Party" as the context requires.
ARTICLE 1: PREMISES
Lessor is the owner of land and improvements of the commercial property know and numbered as 19059 E. Main Street (Highway 26 ) in Linden, San Joaquin County, California ("Premises"). Lessee shall use the Premises for operating a public library.
ARTICLE 2: TERM, TERMINATION, AND DEFAULT
2.1 Initial Term. Parties agree the Lessor will lease the Premises to the Lessee for an Initial Term of three (3) years beginning on the date attested above and ending on August 31, 202 9, unless terminated in accordance with Section 2. 4 or a mutual option is exercised in accordance with Section 2.2.
2.2 Mutual Option for Renewal Term. If Lessee elects, and Lessor agrees, this Lease will extend for a Renewal Term of three (3) years, beginning on September 1, 2029, and terminating on August 31, 2032, provided that:
2.2.1 No material default or breach of this Lease has occurred and continues uncured for more than fifteen (15) days after written notice of default or breach, and
2.2.2 Lessee provides a written notice of Lessee's request to exercise the renewal option on or before May 1, 2029, and
2.2.3 The Renewal Term is subject to the same terms and conditions as are contained in this Lease, except that the monthly lease payment for the Renewal Term shall be specified in Article 3 Lease Payments below, and
2.3 Holdover. If at the expiration of the Term, including the Renewal Term, Lessee continues to use the Premises and follow the terms of this Lease with the consent of the Lessor, the Lease shall continue on a month-to-month basis, subject to all terms and
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conditions of the Lease. During the month-to-month operation , the Lease shall be terminable by either Party upon thirty (30) days' written notice.
2.4 Termination of Lease . This Lease can be terminated in accordance with the following provisions:
2.4.1 Breach. This Agreement may be terminated for breach according to Articles
2.5 through 2.10.
2.4.2 Mutual renewa l is not executed. If a mutual option for renewal i s not executed, the Lease shall terminate without further obligation by either Party on the last day of the term or another date as mutually agreed upon in writing.
2.4.3 Holdover. The Agreement may be terminated in the holdover term according to Article 2.3.
2.4.4 Mutual Agreement. Upon mutual agreement by the parties, and sixty (60) day written notice.
2.4.5 Damage and Destruction. In the event the Premises become unusable for the intended purpose because of dilapidation, condemnation, fire, or other casualty, Lessee shall have the right to terminate the lease thirty (30) days from date of damage.
2.4.6 Surrender. Upon expiration or other termination of this Lease, Lessee shall surrender Premises in good order as reasonable use and normal wear are accepted.
2.5 Lessee’s Default. Each of the following events shall be a default by Lessee and a breach of this Agreement:
2.5.1 Abandonment or surrender of the Premises or of the leasehold estate, or failure or refusal to pay when due any installment of rent or any other sum required by this Agreement to be paid by Lessee, or failure to perform as required or conditioned by any oth er covenant or condition of this Agreement;
2.5.2 The subjection of any right or interest of Lessee to attachment, execution, or other levy, or to seizure under legal process, if not released within 30 days, provided that the foreclosure of any mortgage permitted by provisions of this Agreement relating to purchase or construction of improvements shall not be construed as a default within the meaning of this paragraph;
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2.5.3 The appointment of a receiver to take possession of the Premises or improvements or of Lessee's interest in the leasehold estate or of Lessee's operations on the Premises for any reason, including but not limited to, assignment for benefit of creditors or voluntary or involuntary bankruptcy proceedings, but not including receivership (i) pursuant to administration of the estate of any deceased or incompetent Lessee, or of any deceased or incompetent individual member of any Lessee, or (ii) pursuant to any m ortgage permitted by provisions of
this Agreement relating to purchase or construction of improvements, or (iii) instituted by Lessor, the event of default being not the appointment of a receiver at Lessor's instance but the event justifying the receiversh ip, if any;
2.5.4 An assignment by Lessee for the benefit of creditors or the filing of a voluntary or involuntary petition by or against Lessee under any law for the purpose of adjudicating Lessee a bankrupt; or for extending time for payment, adjustment, or satisfaction o f Lessee's liabilities; or for reorganization, dissolution, or arrangement on account of or to prevent bankruptcy or insolvency; unless the assignment or proceeding, and all consequent orders, adjudications, custodies, and supervisions are dismissed, vacated, or otherwise permanently stayed or terminated within 30 days after the assignment, filing, or other initial event.
2.6 Notice of Default. As a precondition to pursuing any remedy for an alleged default by Lessee, Lessor shall, before pursuing any remedy, give notice of default to Lessee and to all qualifying sublessees or assignees whose names and addresses were previously given to Lessor in a notice or notices from Lessee or any sublessee or assignee stating that the notice was for the purpose of notice under this provision. A qualifying sublessee or assignee is a sublessee or assignee in possession under an existing sublease or assignment which is proper under this Agreement and approved in advance and in writing by Lessor. Each notice of default shall specify in detail the alleged event of default and the intended remedy.
2.7 Lessee’s Right to Cure Defaults . If the alleged default is nonpayment of rent, taxes, or other sums to be paid by Lessee as provided in Article 3, or elsewhere in this Agreement directed to be paid as rent, Lessee shall have 10 days after notice is given to cure the default. For the cu re of any other default if it is curable, Lessee shall promptly and diligently after the notice commence curing the default and shall have 30 days after notice is given to complete the cure, provided, however, that if the nature of Lessee’s Default is such that more than 30 days are reasonably required for its cure, then it shall not be deemed to be a breach if Lessee commences such cure within said 30 day period and thereafter diligently prosecutes such cure to completion. The Parties may agree, in
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writing, to an additional period for curing of the default if it is reasonably required, but never more than an additional 180 days.
2.8 Lessor’s Remedies . If any default by Lessee shall continue uncured, following notice of default as required by this Agreement, for the period applicable to the default under the applicable provision of this Agreement, or if Lessee has committed a non - curable lease violati on, Lessor has the following remedies in addition to all other rights and remedies provided by law or equity, to which Lessor may resort cumulatively or in the alternative:
2.8.1 Lessor may at Lessor's election terminate this Agreement by giving Lessee notice of termination. On the giving of the notice, all Lessee's rights in the Premises and in all improvements shall terminate. Within thirty (30) days after notice of termination, Lessee shall surrender and vacate the Premises and all improvements in broom -clean condition, and Lessor may reenter and take possession of the Premises and all remaining improvements and equipment and trade fixtures and eject all parties in possession or eject some and not others or eject none. Termination under this paragraph shall not relieve Lessee from the payment of any sum then due to Lessor or from any claim for damages previously accrued or then accruing against Lessee.
2.9 Notice of Lessor’s Default – Lessee’s Waiver. Lessor will not be in default under this Agreement unless (1) Lessee has given notice specifying the default and (2) Lessor has failed for 30 days to cure the default, if it is curable or to institute and diligently pursue reasonable corrective or ameliorative acts for non-curable defaults. Lessee shall have the right of termination for Lessor's default only after notice and Lessor’s failure to cure the default or implement reasonable corrective or ameliorative acts for non -curable defaults, within 30 days of the notice.
2.10 Unavoidable Default or Delay. Any prevention, delay, nonperformance, or stoppage due to any of the following causes shall excuse nonperformance for a period equal to any such prevention, delay, nonperformance, or stoppage, except the obligations imposed by this Agreement for the paym ent of rent, taxes, insurance, or obligations to pay money that are treated as rent. The causes referred to above are: strikes, lockouts, labor disputes, failure of power, irresistible superhuman cause, acts of public enemies of this state or of the United States, riots, insurrections, civil commotion, inability to obtain labor or materials or reasonable substitutes for either, governmental restrictions or regulations or controls (except those reasonably foreseeable in connection with the uses contemplated by this Agreement), casualties not contemplated by insurance provisions of this Agreement, or other causes beyond the reasonable control of the Party obligated to perform.
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ARTICLE 3: LEASE PAYMENTS
3.1 Initial Term Lease Payments . For the Initial Term, Lessee will pay Lessor a monthly amount in advance, on the first day of each calendar month, and no later than the seventh day of each month according to the following payment schedule in accordance with Section 3.3, Section 3.4, and Section 3.5.
Year 1 : $3,452.00 from above listed attest date to August 31, 2027 Year 2: $3,660.00 September 1, 2027 to August 31, 2028 Year 3: $3,880.00 September 1, 2028 to August 31, 2029
3.2 Renewal Term Lease Payments. For the Renewal Term, the payment schedule is listed below. Lessee will pay Lessor the identified monthly amount in advance, on the first day of each calendar month, and no later than the seventh day of each month according to the following payment schedule and in accordance with Section 3.3 and Section 3.4 below.
Year 4 $4,113.00 September 1, 2029 to August 31, 2030 Year 5 $4,360.00 September 1, 2030 to August 31, 2031 Year 6 $4,622.00 September 1, 2031 to August 31, 2032 and during a holdover term.
3.3 Delivery of Lease Payment . Each monthly payment will be delivered to Lessor 's Agent, Boysen Realty, located at 10933 E. Main Street (Highway 26), Linden, California 95236, or delivered to other such places designated via written notice by Lessor.
3.4 Delayed Lease Payment. Any payment received after the tenth of any month will be considered late and subject to a late payment penalty of $1 10.00 for each calendar month until cured.
3.5 Security Deposit. Under a prior Lease, Lessee made a security deposit and Lessor continues to hold the $2,300 security deposit. The security deposit will be held by Lessor without interest as security for performance of Lessee’s obligations under this Lease , including without limitation, surrender of possession of Premises to Lessor as herein provided. If Lessor applies any part of the deposit to cure any default of Lessee, Lessee shall on demand, deposit with Lessor the amount so applied so that the Lessor shall have the full deposit on hand at all times during the term of this Lease.
3.6 Damage or Destruction. If required, Lessee shall be relieved from payment of rent and other charges for any portion of time the Premises are unfit for use or occupancy.
ARTICLE 4: LEASE AGREEMENT AND RESPONSIBILITIES
The following expenses are the responsibility of the identified parties below:
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4.1 Lessee Responsibilities. The Lessee shall have sole responsibility for providing and paying for the following services , and those services shall be in the name of the Lessee:
4.1.1 Interior Pest Control
4.1.2 Internet service, internet equipment and internal network and external wiring if needed for connection.
4.1.3 Computers and related Information Technology services
4.1.4 Daily janitorial services, daily maintenance, and cleaning supplies to keep Premises in clean and sanitary order and condition.
4.1.5 Operational supplies
4.1.6 Garbage service
4.1.7 Security, security monitoring equipment.
4.1.8 Telephone equipment and monthly telephone service
4.1.9 Maintenance and repair according to 5.4 Repairs and Maintenance of Tenant Improvements and Article 5.6: Lessee Contribution to Repairs and Maintenance.
4.2 Lessor Responsibilities. The Lessor shall have the sole responsibility for providing and paying for the following services and equipment, and service contracts shall be in the name of the Lessor:
4.2.1 Telephone and communication equipment from utility distribution poles, conduits, right of way, and utility lines to the inside telephone panel,
4.2.2 Exterior pest control
4.2.3 Foundation, exterior walls of the building, and load-bearing walls
4.2.5 Maintenance and repair according to Article 5.3: Repairs and Maintenance by Lessor
4.2.6 Fire monitoring system, annual fire system inspection , and permit costs as required
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4.2.7 Building systems providing services and utilities, including e lectrical and gas connections, HVAC, wiring, plumbing, conduits, utility lines, and pipes
4.2.8 Adequate hot and cold water, sewer service , wastewater, stormwater drainage permit activities in the standard and customary manner
4.2.9 Maintenance and repair of the parking lot. One dedicated space directly behind the Library building exit door with additional shared parking for patrons and part time staff
4.2.10 Landscaping, hardscape, planting, and irrigation
4.2.11 Interior and exterior lighting, fixtures, and wiring.
4.2.12 Structural soundness of roof (both structure and membrane)
4.2.13 Installation of Keys according to Article 5.2: Right of Entry, Keys, and Security Codes.
4.2.14 Exterior lighting, fixtures (power, electric charges, installation, and repairs),
ARTICLE 5: FACILITY REPAIRS AND IMPROVEMENTS
5.1 Emergency Contacts. Parties will provide emergency phone numbers of key staff for issues at Premises. Parties will have the ability to communicate twenty-four hours a day when emergency maintenance or conditions occur. For non-urgent issues, Lessee will communicate with Lessor's Agent during regular business hours.
5.2 Right of Entry, Keys, and Security Codes. Lessee will have the right to access the building at all times during the Lease. Installation of locks and keys will be the responsibility of the Lessor except for two exterior doors (located along the sidewalk and rear gate area ) which are the responsibility of the Lessee . Lessee will provide a list of keyholders and phone numbers of persons eligible for security codes and keys to Lessor Agent. Upon termination of the Agreement, Lessee shall surrender all sets of keys to the Premises.
5.3 Repairs by Lessor . By taking possession of the Premises, Lessee shall be deemed to have accepted the Premises as being in acceptable sanitary order, condition, and repair. Lessor will be responsible for maintaining and repairing the Premises fixed structures, including but not limited to, HVAC system (heating cooling, ventilation), water for reasonable and everyday drinking, lavatory, plumbing including fixtures, water, wastewater, stormwater connections , electrical equipment and lines , windows, doors,
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built-ins, fencing, gates, electrical and mechanical systems, walkways, irrigation, graffiti removal, and vandalism repair. Lessor shall address health and safety repairs within 48 hours.
5.4 Repairs and Maintenance of Tenant Improvements. Lessee will request in writing or via email permission to make minor repairs, alterations, changes, or improvements.
Lessor will not be responsible for any tenant improvements, or repairs, alterations, or changes to tenant improvements within the Premises during the term of the Lease. Within 10 days of receipt of request, Lessor will notify Lesse e if there are objections to the request> Without objections, Lessee will move forward with the repair
5.5 Furniture, Fixtures, and Equipment . Lessee has supplied and furnished the Premises with the following tenant improvements: shelves, cabinets, countertops, display cases, display racks, office equipment, computer equipment, signage, and other furniture, fixtures, equipment, appliances , and materials for the operation of a public library that Lessee in its discretion elects to purchase for the Premises. Said items shall remain the property of Lessee, and Lessee shall immediately remove such personal property at the expiration or termination of this Lease.
5.6 Lessee Contribution to Repairs and Maintenance.
(a) Lessee is and will remain responsible for daily maintenance and janitorial costs of except for items identified in Section 5.3.
(b) Lessee shall , from time to time make expenditures for daily repairs and maintenance for tenant improvements or general repairs in accordance with good library standards, for the first $1,000 in repairs and maintenance for each year, from September 1 through August 31.
(c) Lessee expenditures shall not be for any invoice in excess of $200 or any repair(s) to structural and building systems that cannot be resolved for the "not to exceed" from September 1 to August 31 of any Lease term year.
ARTICLE 6: GENERAL AND SPECIAL TERMS AND CONDITIONS
6.1 Waiver. In the event either Lessor or Lessee at any time waive any breach of this Lease, by the other, such waiver shall not constitute a waiver of any other or succeeding breach of this Lease, whether of the same or of any other covenant, condition, or obligation.
6.2 Insurance Requirements. During the term of this Lease, Parties shall maintain in full force and effect at each Party 's own cost and expense the insurance coverage appropriate to this Lease . City will provide a copy of self -insurance letter upon attest of Lease.
6.3 Notices. The mailing address for Parties for all required notices is as follows:
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Lessor:
Magnasco Investments
3200 Synder
Stockton, CA 95215
Lessor Agent:
Peter Boysen Realty
10933 E. Main Street (Highway 26)
Linden, CA 95236
(209) 887-3391
Lessee:
Stockton- San Joaquin County Public Library System
City of Stockton
605 N. El Dorado Street
Stockton, CA 95202
(209) 937-8206
6.4 Heading Not Controlling. Headings used in this Lease are for reference purposes only and shall not be considered in construing this Lease.
6.5 Severability. If any portion of this Lease thereof to any person or circumstance shall be declared invalid by a court of competent jurisdiction or if it is found in contravention of any federal, state, or city statute, ordinance, or regulation, the remaining provisions of the Lease shall remain in full force and effect to the extent that the provisions of the Lease are severable.
6.6 No Personal Liability . No official or employee of the City of Stockton and the Stockton San Joaquin County Public Library Syste m shall be personally liable to Lessor in the event of any default or breach by the City or for any amount due to the Lessor.
6.7 Applicable Law, Resolutions of Disputes, Forum, and Attorney Fees . California law shall govern any legal action pursuant to this Lease with venue for all claims in the Superior Court of the County of San Joaquin, Stockton Branch , or where applicable, in the Federal District Court of California, Eastern District, Sacramento Division. The prevailing Party in any action brought to enforce or construe the terms of this Lease may recover from the other Party its reasonable costs and attorney 's fees expended in connection with such action.
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6.8 Force Majeure. Neither Party shall be responsible for delays or failures in performance resulting from acts of God, acts of civil or military authority, terrorism, fire, flood, strikes, war, epidemics, pandemics, shortage of power , or other acts or causes reasonably beyond the control of that Party. The Party experiencing the force majeure event agrees to give the other party notice promptly following the occurrence of a force majeure event and diligent efforts to re -commence performance as promptly as commercially practicable.
6.9 Assignment. Parties shall not assign, sublet, or transfer this Lease without the other Party's prior written consent , which shall not be unreasonably withheld, and then only upon such terms and conditions as Parties may set forth in writing.
6.10 Lessor Agent. Lessor assigned the obligations of Lease to an agent, Peter Boysen Realty and that relationship exists during the term of this Lease . The a gent's contact information is identified in Section 6.4 Notices. If this assignment changes, Lessor will immediately notify Lessee of change of Agent.
6.11 Possessory Interest and Real Estate Taxes. Lessor shall pay, prior to delinquency, all general real estate taxes and installments of special assessments coming due during the Lease Term on the Premises, and all personal property taxes with respect to Lessor’s personal property, if any, on the Premises. Lessee will be responsible to pay for all personal property taxes with respect to Lessee’s personal property, if any, on Premises. If the State of California or County of San Joaquin changes the manner in which property taxes are assessed, Lessor and Lessee shall met and confirm to review evidence of increase to Lessee and discuss and mutually agree upon the proportional share of the property tax increase resulting from new Legislation.
6.12 Entire Agreement, Integration, and Modification. This Lease represents the entire integrated Agreement between Lessor and the Lessee; supersedes all prior negotiations, representations, agreements, prior leases, either written or oral between the parties and may be amended only by a written Amendment signed by the Lessor and Lessee.
6.14 Authority and Execution. The undersigned hereby represent and warrant that they are authorized by the parties to execute this Lease. This Lease may be executed in counterparts, by fax, pdf, email, electronic copy, or digital signature, each of which shall be deemed to be an original, and such counterparts constitute one and the same Instrument.
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IN WITNESS WHEREOF, the Parties hereto have executed this Lease the day and first year hereinabove written.
ATTEST: CITY OF STOCKTON
________________________ BY: ______________________________
KATHERINE ROLAND, CMC, CPMC JOHNNY FORD
CITY CLERK CITY MANAGER
APPROVED AS TO FORM MAGNASCO INVESTMENTS
CITY ATTORNEY
BY: ______________________ BY: ______________________________
DONALD LARKIN
INTERIM CITY ATTORNEY
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