8F
Date: September 1, 2026
To: Honorable Mayor and Members of the City Council
From: Aram Chaparyan, City Manager
By: Carlos Huizar, Senior Management Associate | [email protected] Subject: City Manager – Adopt Categorical Exemption Under California Environmental Quality Act (CEQA) Section 15301, Adopt RESOLUTION Determining Certain City-Owned Property is Not Required for City Purposes and that Leasing the Property is in the Public Interest and Approve a Lease Agreement for City-Owned Property at 23860-3870 Madison Street. Expenditure: None.
RECOMMENDATION
Recommendation of the City Manager that City Council:
1. Adopt a California Environmental Quality Act (CEQA) Categorical Exemption pursuant to Guideline Section 15301 (Existing Facilities); and
2. Adopt a RESOLUTION determining certain City-owned property is not required for City purposes and that leasing the property is in the public interest; and
3. Approve a new lease agreement made by and between the City of Torrance and Coastline Covenant Church, for City-owned property located at 23860-3870 Madison Street for a three-year (3) period beginning September 1, 2026 and ending August 31, 2029 with an option to extend for an additional two-year (2) period.
FUNDING
None required.
DISCUSSION
The City of Torrance owns a 4.41-acre parcel of real property located at the southeast corner of Skypark Drive and Madison Street (APN 7377-010-900). Located on a portion of this property is an approximately 1,800-square-foot industrial building known as the “annex building”. Staff has determined that this facility is not currently required for municipal purposes, and that leasing the space will optimize City property assets while generating predictable ongoing revenue.
The City has negotiated a new three (3) year Lease Agreement with Coastline Covenant Church, effective September 1, 2026, with an option to extend for an additional two (2) years upon written notice. Under the terms of the Lease, Coastline Covenant Church intends to sublease the space to Skytron Aero, LLC for research and development, prototyping, testing, light assembly, storage, and manufacturing of aircraft and aircraft components.
1 City Council
September 1, 2026
Key business terms of the proposed Lease Agreement establish an initial base monthly rent of $2,340.00 ($28,080 annually) for Year 1, with annual CPI adjustments subject to a minimum of 3% and a maximum of 5%.
Under the triple-net (NNN) framework, the Tenant assumes full responsibility for all property repairs, maintenance, utility costs, public-facing upkeep, and local tax obligations, including possessory interest tax per Revenue and Taxation Code Section 107.6. Additionally, the lessee will maintain $2,000,000 in general liability insurance alongside required property and workers' compensation coverage, while waiving all claims to statutory relocation assistance under California Government Code Section 7260 et seq. upon lease expiration.
Pursuant to California Government Code Section 37380(b)(1), leasing this property responds to prevailing market conditions and serves the public interest by securing continuous capital investment into City assets and enhancing local economic development in aeronautical technology.
Approval of the proposed Lease Agreement maximizes the utility of underutilized City-owned property while securing guaranteed revenue and private capital improvements for the annex building. Therefore, staff recommends that the City Council adopt the CEQA Categorical Exemption, adopt the RESOLUTION declaring the property surplus to immediate City needs and finding the lease in the public interest, and authorize the Mayor to execute the Lease Agreement with Coastline Covenant Church.
ENVIRONMENTAL FINDINGS
Pursuant to the California Environmental Quality Act (CEQA), this new lease agreement is exempt under CEQA (2026) Categorical Exemption, Section 15301, Class 1 – Existing Facilities. The subject request is the letting of property involving existing facilities with no expansion of use.
ATTACHMENTS
1. Resolution
2. Lease Agreement
2 RESOLUTION NO. 2026-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TORRANCE, CALIFORNIA, DETERMINING CERTAIN CITY-OWNED
PROPERTY NOT REQUIRED FOR CITY PURPOSES AND THAT
LEASING THE PROPERTY IS IN THE PUBLIC INTEREST.
WHEREAS, the City of Torrance (“CITY”) is the owner in fee of approximately 4.41 acres of real property identified as Assessor’s Parcel Number (APN) 7377-010-900 (“PROPERTY”), which includes an approximately 1,800 square-foot industrial annex building (“ANNEX BUILDING”); and
WHEREAS , the City has negotiated a new lease agreement with Coastline Covenant Church (“LESSEE”) to occupy the ANNEX BUILDING for a three (3) year initial term, with a two (2) year option period to extend; an d
WHEREAS, the City Council finds that leasing the ANNEX BUILDING generates ongoing rental revenue and encourages private capital investment in the PROPERTY, thereby serving the public interest and benefiting the community;
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF TORRANCE HEREBY FIND AND DETERMINE AS FOLLOWS:
1. That, pursuant to the California Environmental Quality Act (CEQA), the First Amendment to Lease is exempt under CEQA Guidelines Section 15301, Class 1 - Existing Facilities, as it involves the leasing of an existing structure with no expansion of the existing or formal use; and
2. That the PROPERTY is not required for CITY purposes during the proposed lease term; and
3. The City Council finds that entering into the lease agreement with the LESSEE is in the best interest of the CITY and the public, as it optimizes municipal assets through rental revenue and tenant-funded property improvements; and
4. That the pursuant to CALIFORNIA GOVERNMENT CODE SECTION 37280 (b)(1) the subject lease agreement revenue responds to market conditions without the necessity of discretionary review by a city officer; and
5. That the Mayor is authorized to execute the lease agreement on behalf of the CITY and the City Clerk shall attest to the Mayor's signature and deliver the lease agreement to the LESSEE.
3 ATTACHMENT 1
INTRODUCED, APPROVED AND ADOPTED this 1st day of September 2026.
ATTEST:
____________________________ __________________________ Sharon Kalani Rebecca Poirier, MMC
Mayor City Clerk
APPROVED AS TO FORM
PATRICK Q. SULLIVAN
CITY ATTORNEY
________________________________
Patrick Q. Sullivan
City Attorney
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LEASE AGREEMENT
This LEASE AGREEMENT (“Lease”) is entered into as of September 1, 2026 (the “Effective Date”), by and between the CITY OF TORRANCE, a municipal corporation (“Landlord”), and Coastline Covenant Church, a California nonprofit corporation, and/or affiliated assignee (“Tenant”). The Landlord and the Tenant are at times referred to individually as a “Party,” or collectively as the “Parties.”
R E C I T A L S
WHEREAS, by this lease, Landlord desires to lease the property located at 23860-3870 Madison Street, Torrance, California consisting of an approximately 1,800 square foot industrial building (the “Annex Building”) located on a portion of Assessor’s Parcel Number (“APN”) 7377- 010-001 (“Leased Premises”), to the Tenant. The legal description and depiction of the Leased Premises is attached hereto as Exhibit A.
WHEREAS, the Tenant desires to lease the Leased Premises from the Landlord, upon the terms and conditions set forth herein.
WHEREAS, the Parties understand and agree that this Lease is what is commonly known as a “triple net” or “net-net-net” lease, except as otherwise provided herein, and Tenant acknowledges and agrees that the Landlord shall not be obligated by the terms of this Lease or otherwise to perform any maintenance or construct or repair any improvements at the Leased Premises. Additionally, Tenant acknowledges and agrees that (i) the Landlord has made no representation or warranty regarding the fitness of the Leased Premises for Tenant’s intended use thereof, and (ii) Tenant is familiar with the condition of the Leased Premises and the appropriateness of the Leased Premises for Tenant’s operation of its business thereon.
NOW, THEREFORE, the Landlord and Tenant hereby agree as follows:
1. Lease Term. The Landlord hereby leases to Tenant the Leased Premises, and Tenant hereby leases the same from the Landlord, for three (3) years (“Term”) commencing on the Effective Date of this Agreement (“Commencement Date”).
1.1. Term Extension Option. Tenant shall have the option to extend the Lease Term for an additional two (2) years (“Extension Option”), after termination of the initial Term.
To exercise such Extension Option, Tenant shall notify Landlord, in writing, at least six (6) months prior to the expiration of the Term.
2. Relocation Assistance. Tenant hereby acknowledges and agrees that Tenant shall not incur any right, interest, or claim in or to any benefits or assistance arising under Government Code Section 7260, et seq. or any other federal, state or local law, rule, or regulation relating to or arising from Tenant’s relocation from the Leased Premises or the termination of this Lease. To the extent Tenant is eligible for such benefits Tenant hereby voluntarily and expressly waives each and every right, title or interest in and to such benefits.
5 ATTACHMENT 2
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3. Rent.
3.1. Net Lease. It is the intent of the Parties that the Rent, as defined in Section
3.2 and provided herein, shall be absolutely net to the Landlord and that Tenant shall pay all costs, taxes, assessments, charges, and expenses of every kind and nature imposed on or against the Leased Premises which may arise or become due during the Lease Term, and which, except for execution hereof, would or could have been payable by the Landlord. Tenant recognizes and acknowledges that this Lease may create a “possessory interest” in the Leased Premises as defined in California Revenue and Taxation Code section 107, and that Tenant’s property interest may be subject to property taxation levied on the Tenant’s property interest. Tenant further acknowledges, and agrees, that this subdivision (a) meets the requirements set forth in Revenue and Taxation Code section 107.6(a).
3.2. Rent and Deposit. Tenant shall pay to the Landlord during the Lease Term the amount of Two Thousand Three Hundred Forty Dollars ($2,340.00) per month (“Rent”) for the first (1 st) year of the term. Thereafter, Rent shall increase annually, proportional to the cumulative increase in the annual consumer price index (“CPI”). For purposes of this Agreement, CPI means the United States Department of Labor, Bureau of Labor Statistics, All Cities Average Consumer Price Index, or if such index is no longer published, a successor or substitute index designated by the Landlord. Notwithstanding the foregoing, any annual Rent increase shall at least be three percent (3%) and shall not exceed five percent (5%). Tenant shall pay Rent in advance, on the 1st day of each calendar month (“Rent Due Date”), without offset, deduction, prior notice or demand, beginning on the Commencement Date. Tenant shall also provide a security deposit in the amount of Four Thousand Six Hundred Eighty Dollars ($4,680.00) to guarantee Tenant's obligations to the Landlord under this Lease. Tenant shall not be entitled to earn interest on the amount of the deposit. Tenant's deposit shall be refunded to Tenant within thirty (30) days of the date that Tenant vacates the Leased Premises, minus any appropriate deductions. Tenant shall not use the security deposit in lieu of payment of the last two (2) months’ rent.
3.3. Additional Charge for NSF Checks. Tenant shall pay to the Landlord the sum of $50 as a late payment charge for any check returned for non-sufficient funds.
3.4. Failure to Pay Base Monthly Rent. If Tenant fails to pay Rent due hereunder at the time it is due and payable, such unpaid amounts shall bear interest at the rate of ten percent (10%) per year from the Rent Due Date to the date of payment, computed on a monthly compounding basis with actual days elapsed compared to a 360-day year. Should Tenant fail to pay all outstanding Rent and interest within thirty (30) days of Rent Due Date, the Landlord may immediately terminate the Lease and issue Tenant notice to vacate the Leased Premises within five (5) days of receipt of said notice.
3.5. Delivery of Rent Payments. All Rent due under this Lease shall be made payable to the Landlord, and shall be considered paid when delivered to:
City of Torrance
Attn: Finance Department - Revenue
3031 Torrance Boulevard
Torrance, CA 90503
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The Landlord, at any time, by written notice to Tenant, may designate a different address to which Tenant shall deliver Rent payments. The Landlord may, but is not obligated to, send monthly Rent invoices to Tenant.
4. Use of Leased Premises.
4.1. Use. Tenant shall use the Leased Premises solely for the purpose of research and development, prototyping, testing, light assembly, storage and manufacturing of aircraft and aircraft components and for no other purposes without the prior approval of Landlord, which may be given or withheld in Landlord’s sole and absolute discretion.
4.2. Tenant Improvements. Tenant shall not make or install any improvements on the Leased Premises without the prior written consent and approval of Landlord, which shall not be unreasonably conditioned, withheld or delayed.
4.3. Compliance with Law. All uses of the Leased Premises shall be made in accordance with all ordinances, resolutions, statutes, rules, regulations and laws of the City of Torrance, and any federal, state or local governmental agency of competent jurisdiction.
4.4. Title to Improvements; Personal Property of Tenant; Removal of Property Upon Termination of Lease. Title in and to all fixtures and improvements to the Leased Premises (“Improvements”), excepting any trade fixtures, equipment or other property installed by Tenant, shall be vested in the Landlord. Upon the expiration of the Term or any earlier termination of this Lease, Tenant shall surrender to the Landlord possession of the Leased Premises and the Improvements then located thereon. Upon termination of the Lease, Tenant shall remove all of Tenant’s personal property, trade fixtures, equipment, and any rubbish or debris on the Leased Premises. Sixty (60) days following the expiration of the Term, or following any earlier termination thereof, the Landlord may remove from the Leased Premises all personal property, fixtures and equipment remaining on the Leased Premises that belongs to Tenant or any person or entity claiming by, through, or under Tenant, including, without limitation, all trade fixtures; provided, however, that upon the request of the Landlord, Tenant shall repair damage to the Leased Premises caused by such removal. Should Tenant fail to make such repairs following reasonable notice, the Landlord may make such repairs and the cost thereof shall be immediately due from Tenant to the Landlord with interest thereon at the maximum rate permitted by law.
4.5. Hazardous Materials. Tenant shall not use, handle, store or dispose of any hazardous, toxic, or radioactive matter at the Leased Premises or surrounding area, including, without limitation, those materials identified in Chapter 11, Division 4.5 of Title 22 of the California Code of Regulations (“Title 22”), as amended from time to time (collectively, “Hazardous Materials”). Notwithstanding the foregoing, Tenant may use, handle, and store Hazardous Materials in commercially reasonable quantities customary for and incidental to Tenant’s permitted use of the Leased Premises, provided that such use, handling, and storage is at all times conducted in compliance with all applicable federal, state, and local laws, regulations, and permit requirements, and in accordance with applicable manufacturer and regulatory handling, storage, and disposal standards. Tenant shall be solely responsible for, shall pay for, defend (with an attorney approved by Landlord, such approval not to be unreasonably withheld, conditioned or delayed), indemnify and hold the Landlord, its officials, officers, employees and agents, harmless 7 2979/062579-0170
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against and from all claims, judgments, liabilities, losses, liens, costs and expenses, arising out of or involving any Hazardous Materials brought onto the Leased Premises by or for Tenant or by any of Tenant’s employees, agents, contractors, visitors or invitees during the term of this Lease.
Tenant’s obligations hereunder shall include, but not be limited to, the investigation, removal, clean-up and/or restoration work as required by applicable law or ordered by any regulatory agency, including but not limited to the Los Angeles Regional Water Quality Control Board, the California Department of Toxic Substances Control, or the United States Environmental Protection Agency.
5. Sublease and Assignment. Landlord acknowledges and agrees that Tenant intends to sublease the Leased Premises to Skytron Aero, LLC. Except for the initial sublease to Skytron, Tenant shall not assign this Lease or sublease all or any portion of the Leased Premises to any other subtenant without Landlord’s prior written consent, which shall not be unreasonably withheld, conditioned, or delayed.
6. Alterations and Improvements.
6.1. Maintenance and Repairs. During and upon termination of the Lease Term, Tenant shall make all necessary repairs and maintenance to the Leased Premises, in so that the Leased Premises is returned to the Landlord in the manner of which it was leased, at Tenant's own expense. Tenant shall also make any and all repairs relating to the Tenant’s specific use of the Leased Premises at Tenant’s expense. Tenant shall maintain all portions of the Leased Premises that are visible to the public in good condition, including any fencing, ground maintenance, and landscaping. Tenant shall exercise due diligence to ensure any airborne dirt/gravel/dust is mitigated for surrounding private properties. Graffiti on the Leased Premises shall be removed by Tenant within seventy-two (72) hours. In no event shall this Lease be interpreted to require the Landlord to expend funds for the purpose of conducting repairs or maintenance of the Leased Premises. Tenant acknowledges and agrees that Tenant is familiar with the condition of the Leased Premises and is aware of the adequacy and fitness of the Leased Premises for Tenant’s intended use thereof for the operation of Tenant’s business. THE LANDLORD EXPRESSLY DISCLAIMS
ANY WARRANTY OF HABITABILITY, WARRANTY OF FITNESS FOR A PARTICULAR
PURPOSE, OR ANY COVENANT OF QUIET ENJOYMENT WITH RESPECT TO THE LEASED PREMISES AND/OR TENANT’S USE THEREOF PURSUANT TO THIS LEASE.
6.2. Alterations and Improvements. Tenant, at Tenant's expense, shall have the right, following Landlord’s reasonable consent, to make improvements to all or any part of the Leased Premises from time to time as Tenant may deem desirable, provided the same are made in a workmanlike manner, utilizing good quality materials, and in compliance with all applicable federal, state, and local statutes, rules, and regulations. Tenant shall have the right to place and install personal property, trade fixtures, equipment and other temporary installations in and upon the Leased Premises, and fasten the same to the Leased Premises. All personal property, equipment, machinery, trade fixtures and temporary installations, whether acquired by Tenant at the commencement of the Lease Term or placed or installed on the Leased Premises by Tenant thereafter, shall remain Tenant's property free and clear of any claim by the Landlord. Tenant shall have the right to remove the same at any time during the term of this Lease; provided that Tenant shall be responsible for the repair of any damage caused by such removal. 8 2979/062579-0170
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7. Liens. Tenant agrees that it will pay or cause to be paid costs for work done by it or caused to be done by it on the Leased Premises of a character which will or may result in liens on the Landlord’s reversionary estate therein, and Tenant shall keep the Leased Premises free and clear of all mechanics’ liens and other liens on account of work done for Tenant or persons claiming under it. If any such lien shall at any time be filed against the Leased Premises, Tenant shall either cause the same to be discharged within thirty (30) days after the recording thereof, or if Tenant, in Tenant’s discretion and in good faith, determines that such lien should be contested, shall furnish such security as may be reasonably required by the Landlord. If Tenant shall fail to furnish such security, then, in addition to any other right or remedy of the Landlord resulting from Tenant’s said default, the Landlord may, but shall not be obligated to, discharge the same either by paying the amount claimed to be due or by procuring the discharge of such lien by giving security or in such other manner as is, or may be, prescribed by law. Tenant shall repay to the Landlord, as “Additional Rent,” on demand, all sums disbursed or deposited by the Landlord pursuant to the provisions of this Section 7, including all costs, expenses and attorneys’ fees incurred by the Landlord in connection therewith. Nothing contained herein shall imply any consent or agreement on the part of the Landlord to assume any liability under any mechanics’ lien or other lien law.
Should any claims of lien be filed against the Leased Premises or any action affecting the title to the Leased Premises be commenced, the Party receiving notice of such lien or action shall forthwith use its commercially reasonable efforts to give the other Party written notice thereof within five (5) days after receipt. The Landlord or its representative(s) shall have the right to post and keep posted upon the Leased Premises notices of non-responsibility or such other notices that the Landlord may deem to be proper for the protection of the Landlord’s interest in the Leased Premises. Tenant shall, before the commencement of any work that might result in any such lien, give to the Landlord written notice of its intention to do so in sufficient time to enable the posting of such notices.
8. Insurance.
8.1. Property Insurance Coverage. Tenant shall, at its own cost and expense, maintain in full force and effect property insurance, including fire and extended coverage insurance, covering Tenant’s personal property, including removable trade fixtures, located in the Leased Premises, in such amounts as the Landlord shall deem appropriate.
8.2. General Liability Insurance. Tenant shall, at its own cost and expense, maintain a policy or policies of comprehensive general liability insurance with respect to the Leased Premises with the premiums thereon fully paid on or before the due date, which insurance shall afford minimum protection in the aggregate of not less than Two Million Dollars ($2,000,000) combined single limit coverage of bodily injury, property damage or combination thereof.
8.3. Workers’ Compensation Insurance. Tenant shall provide workers’ compensation insurance as required by law.
8.4. Additional Insurance Requirements. All liability insurance shall include, but not be limited to, personal injury, cross liability, and severability of interest clauses, 9 2979/062579-0170
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products/completed operations, broad form property damage, independent contractors, and owned, non-owned and hired vehicles. All insurance policies shall name the Landlord as an additional insured, shall provide for notice to the Landlord no later than thirty (30) days prior to any cancellation or modification of such policies, and shall be provided by Class A-VII rated insurance carriers reasonably acceptable to the Landlord. Tenant shall provide the Landlord with current Certificates of Insurance evidencing Tenant's compliance with this Section 8 no later than the Commencement Date and upon any subsequent request by the Landlord.
9. Indemnification. Tenant shall defend, indemnify and hold the Landlord, its elected and appointed officers, employees and agents, harmless from all liability whatsoever on account of any damage, injury or liability of any kind or for any injury to or death of persons or damage to property of Tenant or any other person occurring during the term of this Lease arising from any of the following (i) the use, occupancy or enjoyment of the Leased Premises or the surrounding area, or Tenant’s operations thereon, by Tenant or Tenant’s customers, employees, contractors, subcontractors, invitees, permittees, and assignees, or (ii) Tenant’s negligence or intentional misconduct, including any breach of this Lease beyond any applicable notice and cure period, or (iii) liens, claims and demands related to Tenant’s use of the Leased Premises or surrounding area.
Except to the extent arising due to Landlord’s negligence or intentional misconduct, Tenant shall in all cases accept any tender of the defense of any action or proceeding arising out of the foregoing in which Landlord is named or made party and shall defend the Landlord as provided herein with counsel reasonably selected by Tenant. Tenant shall not be liable for such damage or injury to the extent and in the proportion that the same is ultimately determined to be attributable to the negligence or misconduct of the Landlord or its officers, employees, agents or representatives, or the Landlord’s failure to perform its obligations pursuant to this Lease. Tenant’s obligation to indemnify shall include reasonable attorneys’ fees and investigation costs and all other reasonable costs, expenses and liabilities incurred by Landlord. This indemnity provision shall apply to all claims that accrued, or injuries that occurred, prior to Tenant vacating the Leased Premises, regardless of when such claims or injuries were discovered.
10. Assumption of Risk. Except for injuries to persons caused by the willful misconduct of Landlord, and not covered by insurance maintained, or required by this Lease to be maintained, by Tenant: (a) Tenant hereby assumes the risk of any and all injury and damage to the personnel (including death) and property of Tenant, including its employees, contractors and subcontractors, in or about the Leased Premises; and (b) the Parties hereby agree that the Landlord is not to be liable for any injury or damage which may be sustained by the person, goods or property of Tenant or its employees, contractors, subcontractors in or about the Leased Premises, whether said damage or injury results from conditions arising within the Leased Premises or from other sources.
11. Utilities. To the extent applicable, Tenant shall pay any and all charges for water, sewer, gas, electricity, telephone, and/or any other services and utilities used by Tenant on the Leased Premises during the term of this Lease unless otherwise expressly agreed in writing by the Landlord. Tenant shall indemnify and hold the Landlord harmless from and against any liability or damages resulting from, arising out of, or connected with, the provision of, or failure to provide or pay any charges assessed against the Leased Premises for such utility services; provided, however that Tenant shall not indemnify the Landlord for damages resulting from the loss of any 10 2979/062579-0170
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utility service which results from the Landlord’s conduct or the conduct of any contractors, engineers or third parties acting on behalf of the Landlord that are in the Landlord’s control.
12. Inspection. Landlord shall have the right to enter upon the Leased Premises at all reasonable hours to inspect the same upon twenty-four (24) hours’ notice to the Tenant, provided Landlord shall not thereby unreasonably interfere with Tenant’s business on the Leased Premises.
13. Damage and Destruction. If the Leased Premises or any part thereof or any appurtenance thereto is so damaged by fire, casualty or structural defects that the same cannot be used for Tenant’s purposes, or if the Leased Premises cannot be used for Tenant’s purposes for any other reason, then Tenant shall have the right within ninety (90) days following such damage to elect to terminate this Lease as of the date of such damage by providing written notice to the City. In the event of minor damage to any part of the Leased Premises, and if such damage does not render the Leased Premises unusable for Tenant’s purposes and subject to Section 6.1 above, Tenant shall promptly repair such damage at Tenant’s sole cost and expense. In making the repairs called for in this Section 13, Tenant shall not be liable for any delays resulting from strikes, governmental restrictions, inability to obtain necessary materials or labor or other matters which are beyond the reasonable control of Tenant.
14. Quiet Possession. The Landlord covenants and warrants that upon performance by Tenant of its obligations hereunder, the Landlord will keep and maintain Tenant in exclusive, quiet, peaceable, undisturbed and uninterrupted possession of the Leased Premises during the term of this Lease; provided that the Landlord shall have no obligation to expend funds to repair or maintain the Leased Premises to maintain compliance with applicable laws or to maintain the Leased Premises in the condition required for Tenant’s intended use and quiet enjoyment thereof.
15. Consent. The Landlord shall not unreasonably withhold or delay its consent with respect to any matter for which the Landlord’s consent is required or desirable under this Lease.
16. Material Breach. In addition to any other remedies available at law or in equity, any Party not in default hereunder may immediately terminate this Lease upon the breach of a material obligation under this Lease by the other Party that is not cured within thirty (30) days after written notice of the breach, by providing written notice of intent to terminate to all other Parties hereto.
17. Compliance with Law. Tenant shall comply with all federal, state, and local laws, orders, ordinances and other public requirements now or hereafter pertaining to Tenant’s operation of its business and its use of the Leased Premises. The Landlord shall comply with all federal, state, and local laws, orders, ordinances and other public requirements now or hereafter affecting the Leased Premises.
18. Mutual Representations. Each Party hereby represents and warrants (i) he or she is an individual or it is a duly organized entity, validly existing and in good standing under the laws of California; (ii) that the Party has the legal right and authority to enter into and perform its obligations under this Lease; and (iii) that the execution and performance of this Lease will not conflict with or violate any provision of any law having applicability to such Party; and (iv) that 11 2979/062579-0170
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this Lease, when executed and delivered, will constitute a valid and binding obligation of such Party and will be enforceable against such Party in accordance with its terms.
19. Waiver. No express waiver shall affect any default other than the default specified in the express waiver and any waiver shall be effective only for the time and to the extent therein stated. No waiver by the Landlord or Tenant shall be construed as a waiver of a subsequent breach of the same covenant, term or condition.
20. Intentionally Omitted.
21. Notices. All notices required by or relating to this Lease shall be in writing and shall be sent via certified mail, postage prepaid, return receipt requested, to each and every Party to this Lease and addressed as follows:
To Tenant: Coastline Covenant Church
23840 Madison Street
Torrance, CA 90505
To Landlord: City of Torrance
Attn: City Clerk
3031 Torrance Boulevard
Torrance, CA 90503
22. Counterparts. This Lease may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
23. Headings. The article, section, and paragraph titles and headings contained in this Lease are inserted as a matter of convenience and for ease of reference only and shall be disregarded for all other purposes, including the construction or enforcement of this Lease or any of its provisions.
24. Intentionally Omitted.
25. Pronouns. Whenever used in this Lease, the singular shall include the plural, the plural shall include the singular, and the neuter gender shall include the male and female as well as a trust, firm, company, or corporation, all as the context and meaning of this Lease may require.
26. Amendments. This Lease may be altered, amended, or repealed only by a writing signed by all of the Parties.
27. Additional Documents and Acts. The Parties to this Lease shall promptly execute and deliver any and all additional documents, instruments, notices, and other assurances, and shall do any and all other acts and things, reasonably necessary in connection with the performance of their respective obligations under this Lease and to carry out the intent of the Parties. 12 2979/062579-0170
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28. Severability. If any provision of this Lease is determined by any court of competent jurisdiction or arbitrator to be invalid, illegal, or unenforceable to any extent, that provision shall, if possible, be construed as though more narrowly drawn, if a narrower construction would avoid such invalidity, illegality, or unenforceability or, if that is not possible, such provision shall, to the extent of such invalidity, illegality, or unenforceability, be severed, and the remaining provisions of this Lease shall remain in effect.
29. Successors and Assigns. This Lease shall be binding on and inure to the benefit of the Parties and their heirs, personal representatives, and permitted successors and assigns.
30. Governing Law and Forum Selection. This Lease shall be governed by, and construed in accordance with, the laws of the State of California. The federal or state courts located in Los Angeles County, California shall have exclusive jurisdiction to hear any dispute arising under this Lease. Each Party hereto consents to personal jurisdiction in Los Angeles County, California, and hereby authorizes and accepts service of process sufficient for personal jurisdiction by first class mail, registered or certified, postage prepaid, to its address for giving notice as set forth herein. Tenant hereby waives any right to remove any action from Los Angeles County as is otherwise permitted by California Code of Civil Procedure section 394.
31. Attorneys’ Fees. In the event Landlord or Tenant commences any action or proceeding, including but not limited to the filing of a lawsuit, in connection with the enforcement of this Lease, then as between Landlord and Tenant, the prevailing Party shall be entitled to recover from the losing Party all of its costs and expenses, including court costs, arbitration costs, expert witness fees, and reasonable attorneys’ fees incurred in connection with such action, and all fees, costs and expenses incurred on any appeal or in collection of any judgment.
32. Entire Agreement. This Lease constitutes the whole and entire agreement of the Parties with respect to the subject matter of this Lease, and it shall not be modified or amended in any respect except by a written instrument executed by all the Parties. This Lease replaces and supersedes all prior written and oral agreements by and among the Parties or any of them.
[Signatures on Following Page]
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IN WITNESS WHEREOF the Parties hereto have executed this Agreement on the day and year first herein above written.
CITY OF TORRANCE, COASTLINE COVENANT CHURCH,
a municipal corporation a California nonprofit corporation
_______________________________ ________________________________ Sharon Kalani Name
Mayor Title
ATTEST:
________________________________
Rebecca Poirier
City Clerk
APPROVED AS TO FORM
PATRICK Q. SULLIVAN
CITY ATTORNEY
________________________________
Patrick Sullivan
City Attorney
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