ACTION:
____________________________
Clerk/Secretary
Department: Economic Development Item No:
Prepared by: Kevin Ham, Director Meeting Date: February 22, 2022 Approved by: Patrick Johnson, City Manager Agenda Location: Consent Calendar SUBJECT: LEASE AGREEMENT WITH NORTH COUNTY LIFELINE
RECOMMENDATION: Adopt City Council Resolution No. 2022- , approving renewal of Lease Agreement with North County Lifeline, Inc.
CORRELATION TO CITY COUNCIL GOALS: Fiscal Responsibility.
PRIOR ACTION: On June 13, 2017, adopted City Council Resolution No. 2017-86, approving a Lease Agreement with North County Lifeline (Vote: 5-0).
On June 12, 2012, adopted City Council Resolution No. 2012-101, approving an Agreement with North County Lifeline (Vote: 5-0).
See Exhibit 5 for a complete list of prior City Council actions.
STATEMENT ON THE SUBJECT: North County Lifeline (Lifeline) provides youth resilience and mentoring programs, parent support services, homelessness prevention, employment services and skills training, fair housing services, and financial education services to individuals with low to moderate income.
Since 1983, Lifeline has leased the City-owned facility at 200 Michigan Avenue. In July 2017, Lifeline and the City entered into a five-year lease agreement for, 200 Michigan Avenue, 642 Vista Village Drive and 201 Washington Street, which sits on the same City-owned parcel (See Exhibit 2 for a vicinity map).
The current lease for all City-owned buildings and common areas is expiring on June 30, 2022. Lifeline desires to execute a new Lease Agreement (Exhibit 3). Lifeline will pay the City a monthly rental rate of $2,920 for the first year, and rent will increase by 3 percent each subsequent year: Year 2 $3,008, Year 3 $3,098, Year 4 $3,191, and Year 5 $3,287. Under the terms of the Agreement, Lifeline is responsible for all interior and exterior maintenance and upkeep for the campus, including maintaining landscaping and upkeep, repairs, and all capital improvements. An annual maintenance walk through will be conducted by the City to ensure compliance with the agreement’s maintenance provisions.
The current market rental value for the buildings on this site is estimated to be $1.45 per square foot.
Lifeline leases 13,426 square feet of building space. Facility maintenance cost savings are calculated by Public Works and equate to the approximate cost of maintenance the City would be responsible for if the property was leased to a private party and fully maintained by the City.
AGENDA
REPORT
CITY COUNCIL
COMMUNITY DEVELOPMENT COMMISSION
SUCCESSOR AGENCY
BUENA SANITATION DISTRICT
JOINT POWERS FINANCING AUTHORITY
C5
02/22/2022 C5 1 of 25
Approved above recommendation, adopted City Council Resolution No. 2022-20.
Vote: 5-0
MEETING DATE: February 22, 2022 PAGE 2
SUBJECT: LEASE AGREEMENT WITH NORTH COUNTY LIFELINE
City Council Policy 200-13 (Exhibit 4) outlines the process for providing reduced rental rates on City- owned property to non-profit organizations. Under this policy, Lifeline is eligible for up to a 30 percent reduction for the investment they have and will make in the property, up to a 20 percent reduction for the age of the building and up to a 50 percent reduction related to the number of Vista residents served.
Under the new lease, Lifeline will be receiving a 30 percent reduction for the investment in the property and 42 percent reduction for Vista residents served as approximately 80 percent of program participants are Vista residents as noted in communications from Lifeline, and a 13 percent reduction for the age of the building. This brings the total reduction of 85 percent reflecting a final price per square foot of$0.2175 or $2,920 per month. An estimated tally of these calculations can be seen in Exhibit 5 and are reflected in this chart.
Year 1 Year 2 Year 3 Year4 Years
Monthly Lease Income 2920 3009 3099 3191 3297 Total Lifeline Lease Income Annually $ 35,042 $ 36,093 $ 37,176 $ 39,291 $ 39,440 $ 186,042 Facility Maintenance Costs Saved $ 121,000 $ 121,000 121,000 $ 121,000 $ 121,000 $ 605,000 Potential Rent Less Reduced Rent S (198.571) 5 (197.519) 5 (196,436) S (195.321) 5 (194.172) 5 (982,020 Fiscal Impact to City $ (42,5291 $ (40,4261 $ (38,261) $ (36,0301 $ (33,7331 $ (190,9781 Additional Building Maintenance Savings $ 157,000 Final Net Fiscal Impactto City $ (33,97S) FISCAL IMPACT: Approval of the Lease Agreement will generate $186,042 over a five-year term. It is estimated that between the market rate rent and the site savings, there may be a net loss of$33,978 over the five-year period, however given Lifeline is responsible for all costs associated with upkeep and maintenance of the site, we expect this net loss to be negligible at the end of the agreement. Rental income will be deposited in the General Fund Lease Income Account (No. 0010055.455000).
EXHIBITS:
1. City Council Resolution No. 2022- , approving a Lease Agreement with North County Lifeline, Inc.
2. Lease Agreement with North County Lifeline
3. Vicinity Map
4. City Council Policy 200-13
5. Lifeline Rent Calculation
6. Prior City Council Actions
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RESOLUTION NO. 2022-
A RESOLUTION OF THE CITY COUNCIL OF THE CHARTERED CITY OF
VISTA, CALIFORNIA, APPROVING A LEASE AGREEMENT WITH NORTH COUNTY LIFELINE, INC.
The City Council the City of Vista does resolve as follows:
1. Findings. The City Council hereby finds and declares the following:
A. North County Lifeline, Inc., is a California nonprofit corporation which provides a wide range of services to the community.
B. North County Lifeline desires to enter into a lease agreement with the City of Vista ("City') for use of real property located at 642 Vista Village Drive (APN: 175-135-01-00) from which to provide their services.
C. The City Council desires to lease the property located at 642 Vista Village Drive to North County Lifeline, Inc.
2. Action.
A. The Lease Agreement between the City of Vista and North County Lifeline effective July 1, 2022, is approved.
B. The City Manager is authorized to execute the agreement on behalf of the City.
3. Adoption. PASSED AND ADOPTED at a meeting of the City Council of the City of Vista held on February 22, 2022, by the following vote:
AYES:
NOES:
ABSTAIN:
JUDY RITTER, MAYOR
APPROVED AS TO FORM: ATTEST:
DAROLD PIEPER, CITY ATTORNEY KATHY VALDEZ, CITY CLERK By: By:
APPROVED
Darold Pieper
20220214163400
001056023 EXHIBIT 1
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LEASE BETWEEN
THE CITY OF VISTA
AND NORTH COUNTY LIFELINE, INC.
(APN: 175-135-0100)
THIS LEASE is entered into as of July 1, 2022 ("Effective Date") between the City of Vista, a chartered municipal corporation ("Landlord") and North County Lifeline, Inc., a California nonprofit corporation ("Tenant") (this agreement is hereinafter referred to as the "Lease.")
Recitals
A. Landlord is the owner of real property ("Real Property") located at 642 Vista Village Drive, Vista, California, 92084 (APN: 175-135-01-00), all rights appurtenant to that Real Property, and all the improvements located on the Real Property, including portable buildings (collectively, "Property"). The Real Property is bounded by E. Washington St; Vista Village Dr; N. Indiana Ave; and N Michigan Ave, and a description of the Real Property is attached hereto as Exhibit A, Description of Real Property, which is incorporated herein by this reference.
B. The Property is improved with a buildings of approximately 13,426 square feet ("Buildings").
C. Tenant desires to lease from Landlord and Landlord desires to lease to Tenant, all of the property ("Leased Premises").
NOW THEREFORE, for good and valuable consideration the receipt and adequacy of which are acknowledged, the parties agree as follows:
Section 1. Lease of Premises
Landlord hereby leases to Tenant and Tenant hereby leases from Landlord for the Term (as defined in Section 3 below), at the rental, and upon all of the terms and conditions set forth herein, the Leased Premises. Tenant acknowledges that any reference to the square footage of the Leased Premises and Buildings set forth in the recitals is an approximation. Nevertheless, the parties agree that such approximation shall be final and binding for all purposes hereunder, and that no adjustment shall be made to rental amounts, rental rates, or the calculation of the Leased Area Ratio if the actual square footage of the Leased Premises or Buildings differs from any reference to square footage contained herein.
Section 2. Use
(A) The Leased Premises shall be used and occupied only for the Authorized Use as described in paragraph B below. Tenant, at its expense, shall promptly comply with all laws, ordinances, rules, regulations, requirements, or orders of municipal, state and federal authorities now in force or that may later be in force, including, but not limited to, all provisions of the Americans with Disabilities Act of 1990 (the "ADA") and Title 24 of the California Administrative Code ("Title 24") (collectively, "Legal Requirements") applicable to the Leased Premises or Tenant's use or occupancy thereof or alterations thereto. Tenant shall not cause or permit any hazardous material to be brought upon, kept, used, released, discharged, or disposed of in or about the Leased Premises; provided, however, that Tenant shall have the right to use and store reasonable and customary amounts of chemicals and/or solvents used for ordinary office EXHIBIT 2
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equipment, so long as such use and storage complies with all applicable laws, regulations, and ordinances.
(B) The Authorized Use consists of operation of a non-profit corporation providing services, which primarily benefit low-income residents of the City of Vista. The services are limited to youth resilience and mentoring programs, parent support services, homelessness prevention, employment services and skills training, financial education and such other services as the City may approve in writing from time to time. At no time shall the premises be used for housing or overnight accommodation.
Section 3. Term
A. The term (the "Term") of this Lease shall be for a period of sixty (60) months commencing on July 1, 2022 ("Commencement Date") and ending on June 30, 2027 ("Expiration Date"), unless terminated sooner in accordance with this Lease. For purposes of this Lease, the term "Lease Year" means the twelve month period during the Term beginning on each July 1 and ending on each June 30.
B. Upon commencement of the Term, any prior lease agreements between the parties for all or a portion of the Leased Premises, if any, shall terminate and be of no further force and effect except for the provisions of that agreement as they relate to insurance, indemnity, and representations or warranties.
C. At any time, the Landlord may serve a 9-month notice whereas the Tenant shall quit and surrender Landlord the specified buildings and/or property on the Leased Premises in good and orderly condition and repair and shall deliver and surrender the Leased Premises to the Landlord peaceably, together with all alterations, additions, and improvements in, to or on the Leased Premises made by Tenant which Landlord elects to retain. Landlord reserves the right to require Tenant, at Tenant's cost and expense, to remove any alterations or improvements installed by the Tenant and restore the Leased Premises to good condition, which right shall survive the surrender and the delivery of the Leased Premises as provided hereunder.
D. If Tenant is not in breach of any terms of this Lease, Tenant may terminate this Lease with 9-months written advance notice provided to Landlord. Upon the effective date of Tenant's termination of this Lease, Tenant shall quit and surrender to Landlord the specified buildings and/or property on the Leased Premises in good and orderly condition and repair and shall deliver and surrender the Leased Premises to the Landlord peaceably, together with all alterations, additions, and improvements in, to or on the Leased Premises made by Tenant which Landlord elects to retain. Landlord reserves the right to require Tenant, at Tenant's cost and expense, to remove any alterations or improvements installed by the Tenant and restore the Leased Premises to good condition, which right shall survive the surrender and the delivery of the Leased Premises as provided hereunder.
Section 4. As-Is Condition
Tenant agrees that it is leasing the Leased Premises on an "AS-IS" basis, with all defects, without any representation or warranty by Landlord or its agents as to the condition of the Leased Premises or their fitness for Tenant's use, and subject to all applicable zoning, municipal, county and state laws, ordinances and regulations governing and regulating the use 2 60� '/2022 C5 5 of 25
of the Leased Premises, and any easements, covenants or restrictions of record. Tenant acknowledges that Landlord and its agents have not made any representations or warranties that the Leased Premises or the Buildings comply with applicable laws, regulations, ordinances, and governmental mandates ("Legal Requirements"), including, but not limited to, the ADA, Title 24, any transportation management plans, or any laws relating to hazardous substances or materials, and as a material inducement to Landlord, Tenant assumes any and all responsibility for causing the Leased Premises to comply with all Legal Requirements throughout the Term, and will indemnify Landlord for any Claims (as defined below) alleging or establishing otherwise.
Tenant acknowledges that it has satisfied itself that the Leased Premises are suitable for its intended use. Landlord shall have no obligation to do any work in and to the Leased Premises in order to prepare the Leased Premises for occupancy or use by Tenant. Tenant agrees to protect, indemnify, defend and hold harmless the Landlord from all claims arising out of this lease and their use of the Buildings.
Section 5. Rent— Required Provision of Services and Space by Tenant (A) Monthly Rent-
(1) From the Commencement Date to Expiration Date, Tenant shall pay to Landlord a monthly rental for the Leased Premises in the amount set forth below ("Monthly Rent"), which shall increase during each Lease Year by three (3) percent, as follows:
First Lease Year $2,920 a month
Second Lease Year $3,007 a month
Third Lease Year $3,097 a month
Fourth Lease Year $3,190 a month
Fifth Lease Year $3,285 a month
All payments of Monthly Rent shall be paid in advance on the first day of each calendar month. (2) In addition to paying rent to Landlord for use and occupancy of the Leased Premises, Tenant shall: (a) maintain the Leased Premises as required by this Lease; and (b) provide space for designated users as described in Exhibit B, Space Provision Obligations, which is attached hereto and incorporated herein by this reference ("Space Provision Obligations").
(3) All rent to be paid by Tenant to Landlord shall be in lawful money of the United States of America and shall be paid without deduction or offset, prior notice or demand at the address designated herein for notices. Tenant agrees that it would be impracticable or extremely difficult to fix the actual damage to Landlord accustomed by the failure of Tenant to make any payment of rent within ten (10) days of the due date and, therefore, Tenant agrees that if any payment of rent is not made within ten (10) days of its due date, Tenant agrees to pay Landlord a ten percent (10%) late charge.
(C) Abatement
In the event of any casualty or condemnation affecting the Leased Premises, Rent shall be abated hereunder only as to the portion of the Leased Premises, and only to the extent that Rent is abated under the Master Lease.
�D1 Rent
For purposes of this Lease, the term "Rent," includes Monthly Rent. 3 dOnl/2022 C5 6 of 25
Section 6. Security Deposit
The Tenant shall deposit with Landlord the sum of one thousand dollars ($1,000.00) (the "Deposit"). The Deposit shall be maintained and held by Landlord as security for the faithful performance by Tenant of all of the provisions of this Lease to be performed or observed by Tenant. If Tenant fails to pay any Monthly Rent, Additional Rent or other charges due hereunder, or otherwise defaults with respect to any provision of this Lease, Landlord, may at its option, apply or retain all or any portion of the Deposit for the payment of any Monthly Rent, Additional Rent or other charge in default, or the payment of any other sum to which Landlord may become obligated by Tenant's default, or to compensate Landlord for any loss or damage which Landlord may suffer thereby. Tenant waives the provisions of California Civil Code § 1950.7, and all other provisions of law now in force or that become in force after the date of execution of this Lease, that provide that Landlord may claim from a security deposit only those sums reasonably necessary to remedy defaults in the payment of rent, to repair damage caused by Tenant, or to clean the Leased Premises. If Landlord so uses or applies all or any portion of the Deposit, then within ten (10) days after demand therefore, Tenant shall deposit cash with Landlord in an amount sufficient to restore the Deposit to the full amount thereof, and Tenant's failure to do so shall be a material breach of this Lease. Landlord's application or retention of the Deposit shall not constitute a waiver of Tenant's default to the extent that the Deposit does not fully compensate Landlord for all losses or damages incurred by Landlord in connection with such default and shall not prejudice any other rights or remedies available to Landlord under this Lease or by law. Landlord shall not be required to keep the deposit separate from its general accounts. If Tenant performs all of Tenant's obligations hereunder, the Deposit, or so much thereof as has not theretofore been applied by Landlord, shall be returned, without payment of interest or other increment for its use, to Tenant (or, at Landlord's option, to the last assignee, if any, of Tenant's interest hereunder) within thirty (30) days after the later of: (i) expiration of the Term of this Lease, or (ii) vacation of the Leased Premises by Tenant.
Section 7. Real Property Taxes; Possessory Interest (A) The terms of this Lease may result in the creation of a possessory interest. If such a possessory interest is vested in Tenant, Tenant may be subjected to the payment of personal property taxes levied on such interest. Tenant will be responsible for the payment of, and will pay before delinquent, all taxes, assessments, fees, permit, inspection, license and other public charges of whatever nature that are assessed against the Leased Premises or arise because of the occupancy, use, or possession of the Leased Premises. Tenant further agrees not to allow such taxes, assessments, fees, etc, to become a lien against the Leased Premise or any improvements thereon. Nothing herein contained shall be deemed to prevent or prohibit Tenant from contesting the validity or amount of any such tax, assessment, or fee in the manner authorized by law.
(B) Landlord agrees to give appropriate written instructions to public authorities for taxes, assessments, and public charges payable by Tenant to make sure that statements and billings will be mailed directly by public authorities to Tenant. Tenant shall deliver to Landlord, on demand, original receipts or photocopies evidencing payment of all taxes, assessments, and public charges payable by Tenant. If Tenant fails to pay taxes, assessments, and charges on or before the last day on which payment may be made without penalty or interest, Landlord may, but shall not be obligated to, pay those taxes, assessments, or charges, together with interest and penalties. Tenant shall repay any amounts that Landlord may pay pursuant to this 4 VMY2022 C5 7 of 25
provision, together with interest at a rate of ten percent (10%) per annum, to Landlord on demand as additional rent.
Section 8. Personal Property Taxes
During the Term, Tenant shall pay all taxes assessed against and levied upon fixtures, furnishings, equipment, and all other personal property of Tenant contained in the Leased Premises prior to delinquency, and when possible Tenant shall cause these fixtures, furnishings, equipment, and other personal property to be assessed and billed separately from the real property of Landlord. If any of Tenant's fixtures, furnishings, equipment, and other personal property is assessed and taxed with Landlord's real property, Tenant shall pay to Landlord Tenant's share of the taxes within thirty (30) days after delivery to Tenant by Landlord of a statement in writing setting forth the amount of the taxes applicable to Tenant's property.
Section 9. Alterations
Tenant shall not make or suffer to be made, any alterations of the Leased Premises, or any part of the Leased Premises, without the prior written consent of Landlord, and any additions to, or alterations of, the Leased Premises (except movable furniture and trade fixtures) shall become at once a part of the realty and belong to Landlord. Any alterations shall be in conformance with the requirements of all municipal, state, and federal authorities. Tenant shall not erect any wall or obstruction preventing full view in or out of any store window in the Leased Premises.
Section 10. Maintenance and Repair
(A) Tenant shall be responsible for all maintenance, upkeep and repairs to the Leased Premises. Tenant acknowledges that Tenant is leasing the Leased Premises on an "as is" basis. Tenant shall, subject to Landlord's obligations under this Lease, at all times during the Term, and at Tenant's sole cost and expense, keep, maintain, and repair the building and other improvements upon the Leased Premises in good and sanitary order and condition (except as otherwise provided in this Lease) including without limitation, the maintenance and repair of any store front, doors, window casements, glazing, plumbing, pipes, electrical wiring, and conduits, and the heating and air conditioning system (if any) including the maintenance of a service contract with a heating and air conditioning contractor approved by Landlord. Landlord will pass through all contractor's equipment warranties to Tenant for the term of those warranties. Tenant shall also at Tenant's sole cost be responsible for any alterations or improvements to the Leased Premises necessitated as a result of the requirement of any municipal, state, or federal authority. By entering into the Leased Premises, Tenant shall be deemed to have accepted the Leased Premises as being in good and sanitary order, condition, and repair, and Tenant agrees on the last day of the Term or on sooner termination of this Lease to surrender the Leased Premises with appurtenances, in the same condition as when received, reasonable use and wear and damage by fire, act of God, or by the elements excepted. Tenant shall regularly sweep and clean the sidewalks adjacent to the Leased Premises, as needed, and shall be responsible for keeping the Leased Premises' trash enclosure free of debris. Tenant shall be required to maintain landscaping levels at Mode II or better. (B) Tenant shall be responsible for making any and all necessary capital improvements or repairs to the Leased Premises, including, without limitation, the replacement of the roof, repair or other work on the foundation, earthquake retrofitting; repair or other work 021212Y2022 C5 8 of 25
required in connection with structural walls, re-plumbing or rewiring the Leased Premises or a larger portion of the Leased Premises, and the like.
(C) An annual City inspection of the Leased Premises will be conducted each June or on another date selected by the City. The inspection shall determine compliance with maintenance provision and identify potential future repairs.
Section 11. Compliance with Law
Tenant shall, at Tenant's sole cost, comply with all of the requirements of all municipal, state, and federal authorities now in force or that may later be in force pertaining to the use of the Leased Premises, and shall faithfully observe in this use all municipal ordinances and state and federal statutes now in force or that shall later be in force. The judgment of any court of competent jurisdiction, or the admission of Tenant in any action or proceeding against Tenant, whether Landlord be a party or not, that Tenant has violated any order or statute in this use, shall be conclusive of that fact as between Landlord and Tenant. Tenant shall not commit, or suffer to be committed, any waste upon the Leased Premises, or any nuisance or other act or thing that may disturb the quiet enjoyment of any other Tenant in the building in which the Leased Premises may be located.
Section 12. Landlord's Insurance
At its option, Landlord may maintain fire and extended coverage, and at Landlord's option, earthquake insurance, throughout the Term in an amount equal to at least ninety percent (90%) of the replacement value of the building that includes the Leased Premises, together with other insurance as may be required by Landlord's lender or by any governmental agency.
Tenant waives any right of recovery from Landlord, Landlord's officers and employees, and Landlord waives any right of recovery from Tenant, Tenant's officers or employees, for any loss or damage (including consequential loss) resulting from any of the perils insured against in the standard form fire insurance policy with extended coverage endorsement.
Section 13. Indemnity; Waiver of Liability; Insurance (A) Indemnity
Tenant shall protect, indemnify, defend and hold harmless Landlord and its directors, officers, partners, employees, agents, successors and assigns (collectively, "Indemnitees") from and against any and all claims, demands, obligations, damages (including consequential and/or punitive damages), costs, liabilities, actions and judgments (collectively, "Claims") including, without limitation, Claims for injury or damage to persons or property, Claims regarding the legality of the Lease, and Claims for penalties, fines and reasonable attorney's fees and costs (including attorney's fees and costs incurred to enforce this indemnity), incurred in connection with or arising from this Lease, however the same may have been caused (including, without limitation, if caused in whole or in part by the act, omission, or active or passive negligence of Indemnitees, except with respect to any Indemnitee, to the extent caused by criminal misconduct of such Indemnitee), and including, without limiting the generality of the foregoing, Claims arising out of or in connection with: (1) any default by Tenant in the observance or performance of any of the terms, covenants or conditions of this Lease on Tenant's part to be observed or performed, or (2) the use or occupancy or manner of use or occupancy of the Leased Premises by Tenant or any person or entity claiming through or under Tenant, or (3) the condition of the Leased Premises or any occurrence or happening on the Leased Premises from G
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any cause whatsoever, or (4) any act, omission or negligence of Tenant or any person or entity claiming through or under Tenant, or of any of Tenant's agents, employees, contractors, Tenants, licensees, invitees or visitors, occurring in, on or about the Leased Premises, either prior to the commencement of, during, or after the expiration of the Term, including without limitation any acts, omissions or negligence in the making or performing of any alterations, or (5) any failure by Tenant to surrender the Leased Premises at the end of the Term, including, without limitation, all rent and damages payable or (6) the legality of the Lease. In the event any action or proceeding is brought against any Indemnitee for any Claim against which Tenant is obligated to indemnify or provide a defense to an Indemnitee hereunder, Tenant upon notice from Landlord shall defend such action or proceeding at Tenant's sole expense by counsel approved by Landlord, which approval shall not be unreasonably withheld. The provisions of this Section shall survive the expiration or earlier termination or this Lease. In the event that this indemnity exceeds the indemnity permitted by law, the indemnity shall be curtailed only to the minimum extent to eliminate those portions of the indemnity which exceed what is legally allowed.
(B) Insurance
(1) During the entire Term of this Lease, Tenant shall, at Tenant's sole cost, but for the mutual benefit of Landlord and Tenant, maintain general public liability insurance against claims for personal injury, death, or property damage occurring in or about the Leased Premises and on any sidewalks directly adjacent to the Leased Premises. The limitation of liability of this insurance shall be not less than $1,000,000 in respect to injury or death of one person and to the limit of not less than $1,000,000 in respect to any one accident and to the limit of not less than $1,000,000 with respect to property damage, or other lesser amounts of coverage as approved by Landlord in its sole and absolute discretion. (2) Tenant agrees at all times during the Term and during any extension (if applicable),to maintain in force, at Tenant's sole cost and expense, insurance, insurance on the building and improvements that may be built or placed on the Premises, against the hazard of fire, with all standard extended coverage, including vandalism and malicious mischief, in an amount equal to their full insurable value, with a replacement cost endorsement, excluding the cost of excavation and of foundation below the level of the ground. Tenant further agrees that once every two years during the Term and any extension, Tenant will review with the insurance companies issuing the insurance the costs of building, labor and materials, and other pertinent factors to determine whether the stipulated value of the building and improvements stated in the insurance is adequate. If the stipulated value is determined by the insurance companies to be inadequate, Tenant agrees to immediately adjust aggregate amount of the insurance to the extent required to make the stipulated value adequate. Landlord agrees to cooperate fully with Tenant in making this determination for stipulated value and from time to time furnish to Tenant any pertinent facts and figures that Tenant requests, including but not limited to furnishing, on or before the Commencement Date, the cost of constructing the building and other improvements on the Premises. Tenant agrees to give prompt, written notification to the Landlord as to the results of these periodic determinations for stipulated value. Tenant agrees that if the building and improvements on the Premises are destroyed and the proceeds of the insurance policy and any policy carried by Landlord amount to less than the cost of rebuilding the building and improvements, Tenant will advance and pay any sum, which along with the insurance proceeds is necessary to meet the cost of rebuilding. No work or repair or reconstruction shall be undertaken until Tenant has delivered to Landlord plans and specifications for the work that are to be prepared by a competent architect, Landlord approves them (which approval will not be unreasonably withheld), and Tenant delivers to Landlord an estimate of the cost of the work to r
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be done in accordance with the plans; the estimate is to be prepared by a competent contractor.
If Tenant fails to commence the rebuilding, reconstruction, repair, or restoration of any building or improvement as required under this Lease, Landlord or any beneficiary under deed of trust covering the Premises, if permitted by the deed of trust, may, but shall not be obligated to enter the Premises and do whatever may be necessary for the rebuilding, reconstruction, repair, or restoration of any building or improvement as required of Tenant under the terms of this Lease. (3) Tenant's insurance policies shall contain the following clauses:
(i) Landlord is named as an additional insured as respects operations of the named insured performed under contract with the City. (ii) It is agreed that any insurance maintained by Landlord shall apply in excess of, and not contribute with insurance provided by this policy. (iii) This insurance shall not be canceled, limited or non-renewed unti after thirty (30) days written notice has been given to Landlord. (4) Certificates of insurance evidencing the coverages required by the clauses set forth shall be filed with Landlord prior to the Commencement Date of this Lease Agreement.
(5) Tenant agrees that upon the failure to insure as provided in this Lease, or to pay the premiums in the insurance, Landlord may contract for the insurance and pay the premiums, and all sums expended by Landlord for the insurance shall be considered additional rent under this Lease and shall be immediately repayable by Tenant. (6) So that the business of the Tenant may continue with as little interruption as possible, Tenant shall, during the Term and any renewals or extensions, maintain at Tenant's own cost and expense, an insurance policy insuring against damage or destruction by fire, theft, or the elements for their full insurable value all fixtures and equipment and, to the extent possible, all merchandise that is on the Premises at any time during the Term or any renewal or extension.
(7) At all times during the Term and any extensions or renewals, Tenant agrees to keep and maintain, or cause Tenant's agents, contractors, or subcontractors to keep and maintain workmen's compensation insurance and other forms of insurance as may from time to time be required by law or may otherwise be necessary to protect Landlord and the Premises from claims of any person who may at any time work on the Premises, whether as a servant, agent, or employee of Tenant or otherwise. This insurance shall be maintained at the expense of the Tenant or Tenant's agents, contractors, or subcontractors and not at the expense of Landlord.
(8) Landlord agrees that it will tender and turn over to Tenant or to Tenant's insurers the defense of any claims, demands, or suits instituted, made, or brought against Landlord or against Landlord and Tenant jointly within the scope of this Section. However, Landlord shall have the right to approve the selection of legal counsel, to the extent that selection is within Tenant's control, which approval shall not be unreasonably withheld or delayed. In addition, Landlord shall retain the right at Landlord's election to have Landlord's own legal counsel participate as co-counsel, to the extent that claims are made that may be covered by Tenant's insurers.
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(C) Waiver of Liability
(1) Landlord shall not be liable to Tenant, and Tenant hereby waives all claims against Landlord for any loss, injury, or other damage to person or property in or about the Leased Premises or the Buildings from any cause whatsoever, including without limitation, water leakage of any character from any walls, basement or other portion of the Leased Premises or the Buildings, or gas, fire, explosion or other electricity within the Leased Premises or the Buildings or acts of other tenants of the Buildings: provided, however, that the foregoing waiver shall be inapplicable to any loss, injury or damage resulting from the gross negligence or willful or criminal misconduct of Landlord or Landlord's breach of any covenant hereunder.
Tenant expressly assumes all responsibility for security, in, on or about the Leased Premises, and Landlord shall not be liable for any damage to goods, wares, merchandise or other property located in the Leased Premises, or injury or death to Tenant's employees, invitees, customers or any other person in or about the Leased Premises. The foregoing waiver includes criminal acts of third parties.
(2) Except as otherwise provided, Landlord shall not be in default hereunder or be liable for any damages directly or indirectly resulting from, nor shall it constitute a constructive eviction of tenant, nor shall the rental herein reserved be abated by reason of the limitation curtailment, rationing or restriction on use of water, electricity, gas or any other utility or similar company serving the Leased Premises or the Buildings.
Section 14. Free From Liens
Tenant shall keep the Leased Premises and the Property free from any liens arising out of any work performed, material furnished, or obligation incurred by Tenant.
Section 15. Condition at Termination; Abandonment
Prior to the expiration or earlier termination of this Lease, Tenant shall remove its trade fixtures, personal property and any alterations made in accordance with Section 9 and shall surrender the Leased Premises to Landlord in "broom clean" condition and in as good order, repair and condition as when the Leased Premises were delivered to Tenant, ordinary wear and damage and damage by fire and the elements excepted. Tenant shall not vacate or abandon the Leased Premises at any time during the Term, except in accordance with the provisions of Section 3(D).
Section 16. Signs
(A) Tenant shall not place or permit to be placed any sign or poster upon the exterior or in the windows of the Leased Premises without Landlord's prior written consent, nor shall Tenant change the color or exterior appearance of the Leased Premises without Landlord's prior written consent. Tenant's signs shall adhere to all City/Local sign ordinance laws. (B) Tenant shall not, without Landlord's prior written consent, display or sell merchandise outside the defined exterior walls and permanent doorways of the Leased Premises. Tenant shall not conduct or permit to be conducted any sale by auction in, upon, or from the Leased Premises, whether the auction is voluntary, involuntary, or some other solvency proceeding. Tenant shall not erect any visual barriers or walls within four (4) feet of all windows.
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Section 17. Utilities
Tenant shall pay before delinquency all charges for water, sewer, gas, heat, electricity, power, telephone service, and all other services of utilities used in, upon, or about the Leased Premises by Tenant or any of Tenant's subtenants, licensees, or concessionaires during the Term. If any utility is not separately metered, Tenant shall reimburse Landlord for a share of such overall costs based on an equitable formula developed by Landlord, after consultation with Tenant.
Section 18. Operations
Subject to the provisions of Sections 19 and 31, Tenant shall continuously during the entire Lease Term conduct Tenant's business in the Leased Premises and shall keep the Leased Premises open for business and cause Tenant's business to be conducted during the usual business hours of each business day as is customary for businesses of similar character in the city in which the Leased Premises are located to be open for business; provided, however, that this provision shall not apply if the Leased Premises should be closed and the business of Tenant temporarily discontinued on account of strikes, lockouts, or similar causes beyond the reasonable control of Tenant, or closed for not more than three (3) days out of respect to the memory of any deceased officer or employee of Tenant, or a deceased relative.
Tenant shall keep the Leased Premises adequately stocked with merchandise, and with sufficient sales personnel to care for the patronage, and to conduct the business in accordance with sound business practices.
Section 19. Entry
Subject to reasonable prior notice to Tenant, Tenant shall permit Landlord and Landlord's agents to enter into and upon the Leased Premises at all reasonable times to inspect them or to maintain the building in which the Leased Premises are situated, or for making repairs, alterations, or additions to any other portion of the building, including the erection and maintenance of scaffolding, canopy, fences, and props as may be required, or for posting notices of nonliability for alterations, additions, or repairs, or for placing any usual or ordinary "For Sale" signs upon the property in which the premises are located. Landlord shall be permitted to do any of these actions without any rebate of rent and without any liability to Tenant for any loss of occupation or quiet enjoyment of the Leased Premises they might cause. Tenant shall permit Landlord, at any time within sixty (60) days prior to the expiration of this Lease, to place upon the Leased Premises any usual or ordinary "For Lease" signs, and during the sixty (60) day period Landlord or Landlord's agents may, during normal business hours, enter upon the Leased Premises and exhibit them to prospective Tenants.
Section 20. Damage and Destruction
(A) Provided that the Lease is not first terminated, Landlord shall make necessary repairs upon the declaration of the Leased Premises or the building containing the Leased Premises as unsafe or unfit for occupancy by any authorized public authority for any reason other than Tenant's act, use, or occupation, which declaration requires repairs either to the Leased Premises or the building.
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Except as provided in subsection (C), no partial destruction, including any destruction necessary to make repairs required by any declaration made by any public authority, shall in any way void this Lease except that Tenant shall be entitled to a proportionate reduction of Monthly Rent while these repairs are being made, this proportionate reduction to be based upon the extent to which the making of these repairs shall interfere with the business carried on by Tenant in the Leased Premises.
(B) However, if the building in which the Leased Premises is located is damaged as a result of fire or any other insured casualty to an extent in excess of the greater of$10,000 (ten thousand dollars) or twenty percent (20%) of its then replacement cost (including foundations), Landlord may within thirty (30) days following the date the damage occurs elect not to repair the damage and terminate this Lease by written notice to Tenant. If Landlord elects to make the repairs, and provided Landlord uses due diligence in making the repairs, this Lease shall continue in full force, and the Monthly Rent shall be proportionately reduced as provided in this Lease. If Landlord elects to terminate this Lease, all rentals shall be prorated between Landlord and Tenant as of the date of destruction.
(C) If Landlord reasonably believes that the repairs required by this section will deprive Tenant of all or substantially all use of the Leased Premises for a period of sixty (60) or more days, Landlord shall provide written notice to Tenant. Within fourteen (14) days of such notice, Tenant may terminate the Lease upon thirty (30) days advance notice, or such longer period as may be agreed.
(D) Notwithstanding anything to the contrary, Landlord may determine to remove the shuffle board court building (Building C) at any time upon reasonable advance notice (not to exceed ten days) which is sufficient to permit Tenant to remove any stored items that may be present in the building. Tenant hereby grants Landlord the right to have its contractors, agents, and employees enter the Leased Premises with machinery, equipment, and personnel that may be required to remove the shuffle board court building, to perform any other work required under this Lease, or to conduct any testing or inspections that Landlord determines to be reasonable.
The Parties agree that the Monthly Rent owed pursuant to this Lease shall not be reduced in the event that Landlord elects to remove or does remove the shuffle board court building.
Section 21. Tenant's Performance
If Tenant shall fail, within any time limits that may be provided in this Lease, to complete any work or perform any other requirements to be performed by Tenant, or if Tenant shall cause a delay in the completion of any work, Landlord may send Tenant written notice of this default and if this default is not corrected within ten (10) days afterwards, Landlord may, by written notice prior to the curing of this default, terminate this Lease. Landlord shall be entitled to retain as liquidated damages all deposits made under this Lease and these improvements as Tenant may have annexed to the realty that cannot be removed without damage.
Section 22. Assignment and Subletting
A. Tenant may not sublease any part of the Leased Premises, or the entirety of the Leased Premises, without the prior written approval of Landlord. If Landlord approves a sublease, the sublease must provide for a waiver and release by the sublessee of any relocation benefits using language similar to that found in Section 24. In the event that a subleasee occupies any portion of the Leased Premises, Tenant shall indemnify Landlord and 11 %2022 C5 14 of 25
hold Landlord harmless from any claim or monetary obligation owed to sublessee for relocation benefits, which indemnity shall include payment of reasonable attorney fees and costs.
B. This section does not prevent Tenant from making space available within the Property on an hourly, daily, or occasional basis, with or without charge, provided that such usage does not interfere with Tenant's performance of its obligations under this Lease or established the rights of others to use the Property. Such usage shall be permitted only to the extent that Tenants indemnity obligations and insurance, as described in Section 12, covers such usage.
Section 23. Default
(A) Each of the following shall constitute an event of default ("Event of Default") under this Lease:
(i) if Tenant fails to make any payment required by the provisions of this Lease, when due;
(ii) if Tenant fails, within ten (10) days after written notice, to correct any breach or default of the other covenants, terms, and/or conditions of this Lease; (iii) if Tenant abandons the Leased Premises before the end of the Term; or (B) Upon the occurrence of an Event of Default, Landlord shall have the right at any time afterwards to elect to terminate the Lease and Tenant's right to possession under the Lease. Upon this termination, Landlord shall have the right to recover against Tenant:
(i) The value, at the time of award, of the unpaid rent that had been earned at the time of termination;
(ii) The value, at the time of award, of the amount by which the unpaid rent that would have been earned after termination until the time of award exceeds the amount of this rental loss that Tenant proves could have been reasonably avoided; (iii) The value, at the time of award, of the amount by which the unpaid rent for the balance of the Term after the time of award exceeds the amount of this rental loss that Tenant proves could be reasonably avoided; and
(iv) Any other amount necessary to compensate Landlord for all the detriment proximately caused by Tenant's failure to perform Tenant's obligations under the Lease or that in the ordinary course of things would be likely to result. The "value at the time of award" of the amounts referred to in the previous subsections shall be computed by allowing interest at six percent (6%) per annum. The "value at the time of award" of the amount referred to in subsection (iii) shall be computed by discounting this amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of award plus one percent (1%). (C) Efforts Landlord may make to mitigate the damages caused by Tenant's breach of this Lease shall not constitute a waiver of Landlord's right to recover damages against Tenant.
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(D) However, the breach of this Lease by Tenant, or an abandonment of the Leased Premises by Tenant, shall not constitute a termination of this Lease, nor of Tenant's right of possession under this Lease, unless and until Landlord elects to do so, and until that time Landlord shall have the right to recover rent and all other payments to be made by Tenant under this Lease as they become due; provided, that until Landlord elects to terminate this Lease and Tenant's right of possession under this Lease, Tenant shall have the right to sublet the Leased Premises or to assign interests in this Lease, or both, subject only to the requirements of this Agreement.
(E) As security for the performance by Tenant of all duties and obligations under the Lease, Tenant assigns to Landlord the right, power, and authority, during the continuance of this Lease, to collect the rents, issues, and profits of the Leased Premises, reserving to Tenant the right, prior to any breach or default by Tenant under this Lease, to collect and retain the rents, (solely in the case of a sublease previously approved by Landlord) issues, and profits, from the operation of Tenant's approved business use, as they become due and payable, and so long as payments to Landlord are also kept current. Upon any breach or default, Landlord shall have the right at any time afterward, without notice except as provided for previously, either in person, by agent, or by a receiver to be appointed by a court, enter and take possession of the Leased Premises and collect rents, issues, and profits, including those past due and unpaid, and apply the same, less costs and expenses of operation and collection, including reasonable attorney's fees, upon any secured indebtedness, and in an order as Landlord may determine. (F) The parties agree that acts of maintenance or preservation or efforts to release the premises, or the appointment of a receiver upon the initiative of Landlord to protect interests under this Lease shall not constitute a termination of Tenant's right of possession for the purposes of this section unless accompanied by a written notice from Landlord to Tenant of Landlord's election to so terminate.
Section 24. Surrender of Lease
The voluntary or other surrender of this Lease by Tenant, or a mutual cancellation of the Lease, shall not work a merger, and shall, at the option of Landlord, terminate all or any existing subleases or subtenancies, or may, at the option of Landlord, operate as an assignment to Landlord of any of the subleases or subtenancies.
Section 25. Sale of Property
If Landlord sells any of the Leased Premises, Landlord shall be and is entirely relieved of all liability under this Lease, and of all the covenants and obligations contained in or derived from this Lease arising out of any act, occurrence, or omission occurring after the consummation of the sale; and the purchaser, at the sale or any subsequent sale of the Leased Premises, shall be deemed to have assumed and agreed to carry out any of the covenants and obligations of Landlord under this Lease, including, without limitation, the return of the security deposit.
Section 26. Non-Discrimination
Lessee covenants by and for itself and its successors and assigns to refrain from restricting the rental, sale, or lease of the property on any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, ' 7
,J
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12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code.
Section 27. Attorney Fees
If either Landlord or Tenant shall commence any legal proceedings against the other with respect to any of the terms and conditions of this Lease the non-prevailing party shall pay to the other all expenses of the litigation, including reasonable attorney's fees as may be fixed by the court having jurisdiction over the matter. The parties agree that the State of California, County of San Diego, is the proper jurisdiction for litigation of any matters relating to this Lease, and service sent by certified mail to the address of the parties set forth in this Lease shall be adequate service for this litigation.
Section 28. Waiver of Relocation Benefits
Tenant has read and understood all of the provisions of Section 7260, et seq. of the California Government Code, which provides for relocation assistance to persons who are displaced from Leased Premises as a result of the actions of public agencies. Tenant acknowledges and agrees that neither Tenant nor its sublessees, assignees and/or licensees will not be entitled to relocation benefits pursuant to the foregoing upon the termination or expiration of the term of the Lease. Tenant covenants to include such provision in any sublease, assignment document and/or license agreement. Tenant fully releases and discharges Landlord and/or the City of Vista and its elected officials, employees, contractors and agents from any and all manner of rights, demands, liabilities, obligations, claims, or cause of actions, in law or equity, of whatever kind or nature, whether known or unknown, whether now existing or hereinafter arising, which arise from or relate in any manner to (i) the relocation of Tenant's Business or the relocation of any person or persons, business or businesses, or other occupant or occupants located on the Leased Premises, including the specific waiver and release of any right to any relocation benefits, assistance and/or payments under California Government Code Section 7260, et seq., notwithstanding that such relocation assistance, benefits and/or payments may be otherwise required under said sections or other state or federal law; and (ii) compensation for any interest in Tenant's business or the Leased Premises including, but not limited to, land and improvements, fixtures, furniture, or equipment thereon, goodwill, severance damage, attorneys' fees or any other compensation of any nature whatsoever.
It is hereby intended that the release contained in this Section relates to both known and unknown claims that the Tenant may have, or claim to have, against the Landlord and/or the City of Vista with respect to the subject matter contained herein or the events relating thereto.
By releasing and forever discharging claims both known and unknown which are related to or which arise under or in connection with, the items set out above, the Tenant to this Agreement expressly WAIVES any rights under California Civil Code Section 1542, which provides as follows:
A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE
CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT 1 61 nl/2022 C5 17 of 25
THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.
By initialing below, the Tenant acknowledges that Tenant has read the above waiver, understands its effect, has been advised by counsel regarding its effect, and agrees to it with the advic, - uihsel
Tent Landlord
Landlord and Tenant each agree, warrant and represent that they have carefully read the contents of this Section and that, in executing this Lease, they do so with full knowledge of any right which they may have, that they have received independent legal advice from their attorneys, or in the alternative, knowingly have determined not to seek legal advice with respect to the matters set forth herein, and that Tenant has freely signed this Lease without relying on any agreement, promise, statement or representation by or on behalf of either Landlord and/or the City of Vista, or its officers, agents, employees, attorneys except as specifically set forth in this Section.
Section 29. Holding Over
Any holding over after the expiration of the Term, with the consent of Landlord, shall be construed to be a tenancy from month-to-month, cancellable upon thirty (30) days' written notice, and a rental and upon terms and conditions as existing during the last year of the Term.
Any holding over after the expiration of the Term, without the consent of Landlord, shall be construed to be a tenancy-at-will at a Monthly Rent of two hundred percent (200%) of the Monthly Rent as existing during the last year of the Term, but otherwise on the terms and conditions in this Lease.
Section 30. Notices
Wherever in this Lease it shall be required or permitted that notice and demand be given or served by either party to the other, this notice or demand shall be given or served and shall not be deemed to have been given or served unless in writing and forwarded by certified mail, addressed as follows:
If to Landlord:
City of Vista
200 Civic Center Drive
Vista, CA 92084
Attn: Economic Development Director
If to Tenant:
North County Lifeline
Attn: Executive Director
200 Michigan Ave
Vista, CA 92084
Phone (760) 842-6250
Either party may change this address by written notice by certified mail to the other. 115
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Section 31. Successors in Interest
All of the rights and obligations of the parties under this Lease shall apply to (i) their respective heirs, executors, administrators and (ii) their permitted concessionaires, successors, subtenants and assignees. If there is more than one Tenant under this Lease, each shall be jointly and severally bound by all of the terms hereunder.
Section 32. Force Majeure
If either party shall be delayed or prevented from the performance of any act required under this Lease by reason of acts of God, strikes, lockouts, labor troubles, inability to procure materials, restrictive governmental laws or regulations, or other cause without fault and beyond the control of the party obligated, performance of this act shall be excused for the period of the deal and the period for the performance of any act shall be extended for a period equivalent to the period of the delay; provided, however, nothing in this Section shall excuse Tenant from the prompt payment of any rental or other charge required of Tenant except as may be provided elsewhere in this Lease.
Section 33. Partial Invalidity
If any term, covenant, condition, or provision of this Lease is held by a court of competent jurisdiction to be void or unenforceable, the remainder of the provisions of this Lease shall remain in full force and shall in no way be affected, impaired, or invalidated.
Section 34. Captions
The various headings and numbers in this Lease and the grouping of the provisions of this Lease into separate sections and paragraphs are for the purpose of convenience only and shall not be considered a part of this Lease.
Section 35. Time
Time is of the essence in this Lease.
Section 36. Subordination
(A) This Lease, at Landlord's option, shall be subordinate to the lien of any first deed of trust or first mortgage subsequently placed upon the real property of which the Leased Premises are a part, and to any advances made on the security of it, and to all renewals, modifications, consolidations, replacements, and extensions; provided, however, that as to the lien of any deed of trust or mortgage, Tenant's right to quiet possession of the premises shall not be disturbed if Tenant is not in default and so long as tenant shall pay the rent and observe and perform all of this Lease's provisions, unless this Lease is otherwise terminated pursuant to its terms. If any mortgagee, trustee, or ground landlord shall elect to have this Lease prior to the lien of its mortgage, deed of trust, or ground lease, and shall give written notice to Tenant, this Lease shall be deemed prior to that mortgage, deed of trust, or ground lease, whether this Lease is dated prior or subsequent to the date of this mortgage, deed of trust, or ground lease, or the date of recording.
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(B) If any foreclosure proceedings are brought, or if a power of sale under any mortgage or deed of trust made by Landlord covering Leased Premises is exercised, Tenant shall attorn to the purchaser upon any foreclosure or sale and recognize that purchaser as landlord under this Lease, provided that the purchaser shall agree that so long as no Event of Default exists under this Lease, Tenant's right to quiet possession shall not be disturbed. (C) If upon any sale, assignment, or hypothecation of the Leased Premises by Landlord, or at any other time, an estoppel certificate or financial statement shall be requested of Tenant, Tenant agrees, within twenty-one (21) days afterwards, to deliver the financial statement or the estoppel certificate addressed to any proposed mortgagee or purchaser to Landlord certifying the requested information, including the dates of commencement and termination of this Lease, the amounts of security deposits, if any, that the Lease is in full force, and that there are no differences, offsets, or defaults of Landlord, or noting these differences, offsets or defaults actually exist. Tenant acknowledges that the mortgagee or purchaser shall have the right to rely on the estoppel certificate or financial statement. Tenant shall in the same manner acknowledge and execute any assignment of rights to receive rents as required by any mortgagee of Landlord.
Section 37. No Oral Agreements
This Lease includes in full each agreement of every kind between the parties concerning the Leased Premises, and all preliminary negotiations and agreements of any kind or nature are merged in this Lease, and there are no oral agreements or implied covenants made in connection with this Lease.
Section 38. [Reserved]
Section 39. Governing Law; Venue
This Lease shall be governed by and construed in accordance with the laws of the State of California. Any legal action involving dispute under this contract, including an action for breach or enforcement of the contract, must be instituted in the Superior Court of the County of San Diego or the federal court in said county.
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Section 40. Counterparts
This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.
IN WITNESS WHEREOF, the parties have executed this Lease as of the Effective Date.
CITY OF VISTA, a chartered municipal NORTH COUNTY LIFELINE, INC., a corporation California ro ' or oration
�s
By: Signed: � .
PATRICK JOHNSON, CITY MANAGER
Name: (-
Title:
ATTEST:
KATHY VALDEZ, CITY CLERK
Signed:
By: Name:
APPROVED AS TO FORM: Title:
DAROLD PIEPER, CITY ATTORNEY
By:
RISK MANAGEMENT REVIEW:
DOLORES GASCON, RISK MANAGER
By:
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EXHIBIT 3
VICINITY MAP
e0 25 50 IN Feet
1 I 1
f
V t.
Wj
r
�4
Bldg Also Known As: SQF
Bldg A Train Station, former Chamber Offices 1,676 Bldg B Townsite Community Center 5,382
Bldg C Shuffleboard Court Building N/A
Bldg D Lifeline Offices (owned by Lifeline) 750 Bldg E Portable Building 1,768
Bldg F 200 Michigan addition, portables 1,700 Bldg G 200 Michigan, 200 Jefferson, 200 Vista Village, Lifeline 2,900 EXHIBIT 3
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Vista City Council Policy
200-13 RENTAL RATES FOR NON-PROFIT ORGANIZATIONS
PURPOSE
1. To provide criteria to establish rental rates for City-owned properties.
2. To ensure that all non-profit organizations are treated fairly.
POLICY
1. All requests for rentals of City facilities are to be negotiated by staff and presented to the City Council using a standard rental agreement form.
2. All rental rates will be based on the square footage cost for the year the agreement is approved.
3. The square footage costs will be reduced from the market rate based on the following rate factors:
a. Percentage of Vista residents served by the organization compared to other localities: weight of reduction up to 50 percent. b. Investment non-profit organization has made in rental property:
weight of reduction up to 30 percent.
C. Age and depreciated value of the rental property: weight of reduction up to 20 percent.
HISTORY
Adopted November 27, 2001.
200-12 (1)
EXHIBIT 4
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Year 1 Year 2 Year 3 Year 4 Year 5 Monthly Lease Income 2920 3008 3098 3191 3287 Total Lifeline Lease Income Annually $ 35,042 $ 36,093 $ 37,176 $ 38,291 $ 39,440 $ 186,042 Facility Maintenance Costs Saved $ 121,000 $ 121,000 $ 121,000 $ 121,000 $ 121,000 $ 605,000 Potential Rent Less Reduced Rent $ (198,571) $ (197,519) $ (196,436) $ (195,321) $ (194,172) $ (982,020) Fiscal Impact to City $ (42,529) $ (40,426) $ (38,261) $ (36,030) $ (33,733) $ (190,978) Additional Building Maintenance Savings $ 157,000 Final Net Fiscal Impact to City $ (33,978) Total Monthly Total Annual
Total Sq Ft Rent Rent
Brokers Opinion of Value Rent Per Sq F $ 1.45 13,426 $ 19,468 $ 233,612 30% Reduction for investment in props $ (0.435)
42% Reduction for#of Vista residents $ (0.609)
13%for Age and Depreciation $ (0.1885)
Total Rent after reduction $ 0.2175 13426 $ 2,920 $ 35,042 Final Rent Decision $ 0.2175 13426 $ 2,920.155 $ 35,041.86 3% Increase Annually Total Monthly
Rent @ Market Total Annual
Total Sq Ft Rate Rent
Market Rent Per Sq Ft $ 1.45 13426 $ 19,468 $ 233,612 EXHIBIT 5
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PRIOR LIFELINE CITY COUNCIL ACTIONS
On June 13, 2017, adopted City Council Resolution No. 2017-86, approving a Lease Agreement with North County Lifeline (Vote: 5-0).
On June 12, 2012, adopted City Council Resolution No. 2012 -101, approving an Agreement with North County Lifeline (Vote: 5-0).
On January 13, 2009, adopted City Council Resolution No. 2009-7, approving a Lease Agreement with North County Lifeline (Vote: 5-0).
On January 10, 2006, adopted City Council Resolution No. 2006-10, approving a Lease Agreement with North County Lifeline (Vote: 5-0).
On April 25, 2000, adopted City Council Resolution No. 2000-70, approving a Lease Agreement with Lifeline Community Services (Vote: 5-0).
EXHIBIT 6
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