TO:
FROM:
FOR:
SUBJECT:
Agenda Item No.
CITY OF YUCAIPA
AGENDA REPORT
Honorable Mayor and City Council
Fermin Preciado, Director of Development ServiceVCity Engin .rF(' Ryan Miller, Housing and Economic Development Analyst q) City Council Meeting of April 8,2024
Facility Lease Agreement - Big Time Design LLC.
RECOMMENDATION
That the City Council authorize the City Manager to execute a Facility Lease Agreement with Big Time Design LLC, for the lease of the city-owned building and property located at 35157 Yucaipa Boulevard.
DISCUSSION
Big Time Design LLC (BTD), a clothing and apparel company specializing in screen-printing and embroidery, had expressed an interest in leasing the building and property located at 35157 Yucaipa Boulevard in the Uptown District to provide their services to Yucaipa residents, visitors, small businesses and non-profit organizations in Yucaipa and the surrounding region. BTD is expanding its operations to include a brick-and-mortar location in the City of Yucaipa that will better serve the local community and their partners. BTD is also committed to partnering with the City to provide "Yucaipa" branded clothing and apparel, to promote shopping local, Yucaipa brand recognition, and enhancing economic activity in the Uptown District.
The subject city-owned property was vacated by the prior tenant after their lease expired on December 31,2023. BTD approached the City in November 2023 and inquired about available commercial zoned properties that may be for lease in the Uptown District. City staff met with BTD on multiple occasions to identi$ potential properties that suited their requirements. On January 24,2024, BTD provided the city with a letter of intent that stated their desire to lease the city- owned property located at 35157 Yucaipa Boulevard.
Staff recognizes the advantages of having occupied commercial buildings in the Uptown District and leasing those owned by the city. In addition, BTD's presence would contribute to the ongoing economic development initiatives in the Uptown District. The lease of the property supports the City Council's adopted 2024 goals towards addressing the structural budget imbalance. 12 FISCAL IMPACT
Under terms of the one-year lease, BTD will pay the City a total of $20, I 60 for the lease of the Facility.
Attachment:
l. Facility Lease Agreement
Approved By:
ATTACHMENT NO. I
FACILITY LEASE AGREEMENT
RECORDING REQUESTE,D BY
AND WHEN RECORDED MAIL TO:
City Clerk
City of Yucaipa
3 427 2 Y ucaipa Boulevard
Yucaipd, CA 92399
EXEMPT FROM FEES PER G.C. 6I 03
SPACE ABOVE FOR RECORDERS USE ONLY
FACILITY LEASE AGREEMENT
35157 Yucaipa Boulevard
This lease agreement ("Lease") is made and entered into this _day of .2024 (the "Lease") by and between the CITY OF YUCAIPA, a municipal corporation ("Landlord" or "City") and the BIG TIME DESIGN, SP ("Tenant" or "BTD"). The parties to this Lease may be referred to herein as "party" or collectively as the "parties." I. SCOPE OF AGREE,MENT
The City grants to BTD and BTD accepts from City a lease to use the 35157 Yucaipa Boulevard Yucaipa, CA 92399, also known as Assessor's Parcel 319-061-05, which includes the building thereon (hereinafter referred to as "the leased premises") on the terms and conditions set forth herein.
II. ENTIRE AGREE,MENT
This Lease is the complete agreement of the parties with respect to the subject matter hereof.
III. TERM OF LEASE; EXTENSION; TERMINATION
The initial term of this Lease shall be for a period of (12) month commencing on March Lst,2024, and ending on February 28,2025, provided that this Lease may be extended by agreement of both parties up to (l) time for one (l) additional year. This Lease may be terminated by either party, with or without cause, upon thirty (30) days written notice to the other party. The City shall provide such notice only after specific action as directed by the City Manager.
IV. LEASING OF FACILITY; RENT
In consideration of the mutual covenants contained herein and the payment by BTD to City the fee of $1680 per month, by the 5th day of each calendar month, without prior notice or demand, and without offset or deduction, City hereby leases to BTD, and BTD hereby leases from the City, the facility located at 35157 Yucaipa Boulevard, Yucaipa, California.
I
V. UTILITIES AND MAINTENANCE
Te nant Re spons ibilitie s
l. BTD shall pay for all utilities except water and sewer, but including gas, electricity, alarm, and telephone service necessitated by BTD's use of the leased premises.
2. BTD, as the tenant, shall be responsible for providing and paying for trash removal and disposal services for the leased premises. This includes arranging for regular trash pickup and ensuring that all waste generated by BTD's use of the premises is properly disposed of in compliance with local regulations.
3. During the term of this Lease, BTD shall conduct routine maintenance at its cost.
The parties agree that the term "routine maintenance" shall include the day-to-day or periodic maintenance activities, such as janitorial services, and intemal cosmetic repairs i.e., painting, replacement of lighting bulbs, which are intended to maintain the premises in a manner such that it will not deteriorate from its condition before leased, normal wear and tear excluded.
C i ty Re spons ibil it ie s :
l. The City is responsible for utilities defined as water usage and sewer usage. a. The City is not responsible for providing the cost of said utilities.
2. The City agrees to perform and pay for front yard landscaping and any major or structural maintenance of the building excluding damage caused by Tenant, in addition to the cost of irrigation water for the front yard.
VII. USE OF LEASED PREMISES
l. The BTD will utilize the leased property for showcasing and vending clothing, uniforms, and apparel. They also offer screen-printing and embroidery services.
2. BTD agrees to sell "Yucaipa" logoed clothing to promote the community through branding providing the city with economic engagement and activity in the Uptown District.
a. "Yucaipa Branded Clothing Display", BTD agrees to display a minimum of one (l) rack or one (l) section to display Yucaipa branded clothing.
Said Display shall be prominently featured within BTD's place of business.
b. BTD agrees to work with the City of Yucaipa's Economic Development Department to create four (4) seasonal logos to incorporate in the City Clothing Display. Such logos shall be featured on the Products sold by 2 BTD.
c. All current City employees (the "Employees") shall be entitled to a lUoh discount on the purchase of clothing and apparel for work uniforms. BTD shall communicate with the HR Director to verifu current employees.
3. Modifications to the leased premises may be made by the BTD, subject to prior written approval by the City and at no cost to the City.
4. The BTD agrees that it will, upon termination of this lease, retum the lease premises to the same condition as at the commencement of the term of the lease, reasonable wear and tear excluded.
VIII. INSURANCE, REQUIREMENTS
BTD shall procure and maintain, for the duration of the Lease, insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the BTD's operation and use of said premises:
l. Commercial General Liability: $1,000,000 per occurrence for bodily injury, personal injury, and property damage. If Commercial General Liability or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/ location or the general aggregate limit shall be twice the required occurrence limit. Coverage shall be at least as broad as ISO CGL occurrence form GC 0001.
2. Workers' Compensation as required by the Labor Code of the State of California and Employers' Liability Insurance.
3. Automotive Liability: $1,000,000 per occurrence for bodily injury and property damage. This shall include owned, hired, and non-owned automobiles. Coverage shall be as broad as ISO CGL occurrence form CG 0001. Auto liability is required only if autos will be used in performance of this contract.
4. All policies, except for Workers' Compensation (requires Certificate of Insurance only), shall name, by endorsement, the City of Yucaipa, its employees, officers, agents, and volunteers as additional insurers. This endorsement shall be provided to the City prior to or concurrent with the Tenant's execution of this Lease.
5. The endorsement shall provide that such insurance afforded to the additional insureds shall be primary, but only as respects to this Lease, and insurance maintained by the City, its employees, officers, agents, and volunteers shall be non-contributing.
6. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, cancelled, reduced in coverage or in limits except after thirty (30) days prior written notice has been given to the City. .lJ
IX. INDEMNIFICATION AND HOLD HARMLESS
BTD shall indemnifu, defend (with legal counsel approved by City, which such approval by City shall not be unreasonably withheld) and hold harmless City and its elected and appointed officials, officers, employees, servants and agents from and against all claims, actions, liabilities, losses, damages, costs, attorneys' fees and other expense(s) of any nature for loss or damage to property, or injury to or death of persons, arising in any manner whatsoever, directly or indirectly, by reason of this Lease or the use or occupancy of the Premises by BTD (collectively "Claim(s)"), whether the Claim be made during the Lease term or thereafter, except such loss, damage, injury or death caused by the sole negligence or willful misconduct of the City. The liability of BTD hereunder shall not be limited by the insurance provisions of this Lease. The indemnification, legal defense and hold harmless provisions of this Section shall survive the expiration or termination of this Lease and shall relate back to all periods of BTD's previous possession of the Premises.
X. DESTRUCTION OF PREMISES
Should said Premises be damaged or destroyed by any cause not the fault of the BTD, City may, at City's sole option, repair the same.
XI. MORTGAGES AND OTHER ENCUMBRANCES
Tenant shall not mortgage, hypothecate or otherwise encumber or cause any liens to be placed upon the Premises or the freehold estate of City.
XII. ASSIGNABILITY
Tenant shall not sub-lease the premises, and any attempt to do so shall terminate this Lease without further action from the part of the City.
XIII. DEFAULT
L Except as otherwise provided in this Lease, at any time one party is in default or breach of any provision of this Lease, the other party may give written notice to remedy such default or breach. If the default or breach is remedied within thirty (30) days following such notice, then this Lease shall continue in full force and effect. If, (l) such default or breach is not remedied within said thirty (30) day period, or (2) the nature of the default or breach is such that it cannot reasonably be cured within thirty (30) days and the defaulting party fails to commence to cure within the thirty (30) day period and thereafter diligently prosecute the cure to completion, then the non- defaulting party may, at its option, terminate this Lease and, if terminated by City, take possession of the Premises without further notice and shall also be entitled to such damages or other remedies at law or in equity are available to either party because of such default or breach. Termination of this Lease pursuant to this Section shall not be considered a waiver of damages or other remedies at law or in equity available to either party because of such default or breach. Each term and condition 4 of this Lease shall also be deemed to be a covenant.
2. A waiver by either party of any default or breach by the other party of any provision of this Lease shall not constitute or be deemed to be a waiver of any subsequent or other default or breach. No waiver shall be binding, unless executed in writing by the party making the waiver; waivers on behalf of City shall only be given by resolution of the City Council. No waiver, benefit, privilege, or service voluntarily given or performed by either party shall give the other party any contractual right by custom, estoppel, or otherwise. The subsequent acceptance of rent pursuant to this Lease shall not constitute a waiver of any preceding default by Tenant other than default in the payment of the particular rental payment so accepted, regardless of City's knowledge of the preceding breach at the time of accepting the rent; nor shall acceptance of rent or any other payment after expiration or termination constitute a reinstatement, extension, or renewal of the Lease or revocation of any notice or other act by City.
3. The making by Tenant by any general assignment, or general assignment for the benefit of creditors; the filing by or against Tenant of a petition to have Tenant adjudged a bankrupt or a petition for reorganization or iurangement under any law relating to bankruptcy unless the same is dismissed within sixty (60) days; the appointment of a trustee or receiver to take possession of substantially all of Tenant's assets located at the Premises or of Tenant's interest in the Lease, where possession is not restored to Tenant within thirty (30) days; or the attachment, execution or other judicial seizure of substantially all of Tenant's assets located at the Premises or of Tenant's interests in the Lease, where such seizure is not discharged within thirty (30) days; shall constitute a default under this Lease.
4. City's Remedies. City shall have the following remedies if Tenant is in default or breach of the Lease, following notice and opportunity to cure, as set forth above:
a. City may continue this Lease in full force and effect, and the Lease will continue in effect so long as City does not terminate Tenant's right to possession, and the City shall have the right to the continued performance of Tenant of all of Tenant's obligations and duties under this Lease, and to collect rent when due. Following Tenant's default and for so long as City has not terminated Tenant's right to possession on the Premises, if Tenant obtains the consent of the City Council given at an open and public meeting, Tenant shall have the right to sublet the leased premises or assign this Lease with the City's consent which will not be unreasonably withheld.
b. In the event that the Lease is validly terminated in accordance with the terms of the Agreement, the Tenant shall not be held accountable for any outstanding default payments for the duration of the Agreement until its termination. c. If the Tenant is in default under terms of this Lease, City may, after thirty (30) days' written notice of default, terminate Tenant's right to possession of the Premises by written notice to Tenant. No act by the City other than giving written notice to the Tenant shall terminate this Lease.
5 XIV. GENERAL PROVISIONS
l. Attomeys' Fees. In the event that any action is brought by either party hereto as against the other party hereto for the enforcement or declaration of any right or remedy in or under this Lease or for the breach or enforcement of any covenant or condition of this Lease, the prevailing party shall be entitled to recover reasonable attorneys' fees and litigation costs from the other party.
2. Waiver.
a. No waiver of any breach of any of the terms, covenants, agreements, restrictions or conditions of this Lease shall be construed as a waiver of any succeeding breach of the same or other covenants, agreements, restrictions and conditions hereof.
b. The City's consent to or approval of any act shall not be deemed to render unnecessary the obtaining ofCity's consent to or approval ofany subsequent act by Tenant. The acceptance of rent hereunder by City shall not constitute a waiver of any preceding breach by Tenant of any provision hereofl, other than the failure of Tenant to pay the particular rent so accepted, regardless of City's knowledge of such preceding breach at the time of its acceptance of such rent.
3. Entry by City: Inspection. City reserves the right for City and City's agents and representatives to enter upon the Premises at any reasonable time and after reasonable notice to Tenant for the purpose of inspecting the Premises, to examine the condition thereof, including their environmental condition; showing the same to prospective purchasers, tenants or lenders; making such alterations, repairs, improvements or additions to the Premises, as City deems reasonable or necessary; or attending to City's business and City's interest hereunder, as City may deem necessary or desirable.
4. Relationship of the Parties. The relationship of the parties hereto is that of landlord and tenant, and it is expressly understood and agreed that City does not in any way, nor for any purpose, become a partner of Tenant or a joint venturer with Tenant in the conduct of Tenant's business, or otherwise.
5. Incomoration of Prior Agreements: Modifications. This Lease contains all agreements of the parties with respect to any matter mentioned herein. No prior agreement or understanding pertaining to any such matter shall be effective. This Lease may be modified only in writing, and signed by the parties in interest at the time of such modification.
6. Time of Essence. Time is expressly declared to be of the essence of this Lease. Each term and each provision of this Lease, performable by Tenant, shall be construed to be both a covenant and a condition.
7. Ouitclaim. At the expiration or earlier termination of this Lease, Tenant shall execute, 6 acknowledge and deliver to City, within five (5) days after written demand from City to Tenant, a quitclaim deed or other document deemed necessary or desirable by City's counsel to remove any cloud of this Lease from the real property subject hereto.
8. Construction of Lease. The language in all parts of this Lease shall, in all cases, be construed as a whole and in accordance with its fair meaning and not restricted for or against either City or Tenant. The captions of the sections and subsections of this Lease are for convenience only and shall not be considered or referred to in resolving questions of construction.
9. "Cit)r" and "Tenant". The words "City" and "Tenant," wherever used herein, shall be applicable to one or more persons, as the case may be; the singular shall include the plural; the neuter shall include the masculine and feminine; and, if there be more than one, obligations thereof shall be joint and several. The word "person," whenever used herein, shall include individuals, firms, associations and corporations. Whenever in this Lease any words denoting undertaking, covenant or duty are used, such words shall have the same force and effect as though made in the form of conditions.
10. Choice of Law: Venue. This Lease shall be governed by the laws of the State of California, with venue for any legal actions, which may be brought by either party against the other party in the County of San Bemardino, California.
XIV. NOTICES
Any notice to be given or other document to be delivered by either party to the other hereunder may be delivered in person to either party, or may be deposited in the United States mail, in the State of California, duly registered or certified, with postage fully prepaid and addressed to the party for whom intended as follows:
TO CITY:City Manager
City of Yucaipa
34272 Yucaipa Blvd.
Yucaip&, CA 92399
(909) 797 -2489, Ext. 253
TO TENANT:Big Time Design
35157 Yucaipa Blvd
Yucaip&, CA 92399
Attn: Chris Deleon
Either party hereto may, from time to time, by written notice to the other party, designate a different address, which shall be substituted for the one above specified. If any notice or other document is sent by registered or certified mail, as aforesaid, the same shall be deemed served or delivered on the third business day after the mailing thereof, as above 7 provided
XVI. SEVERABILITY
If any provision of this Lease shall be adjudged to be invalid, void or illegal, it shall in no way affect, impair or invalidate any other provision(s) hereof, the parties hereby agreeing that they would have entered into the remaining portion of this Lease notwithstanding the omission of the portion or portions adjudged invalid, void or illegal.
XVII. COUNTERPARTS
This Lease may be executed in any number of counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which, taken together, shall be deemed to be one and the same instrument.
IN WITNESS WHEREOF, the parties hereto have executed this Lease on the date and year first above written.
CITY OF YUCAIPA
Chris Mann, City Manager
ATTEST:
Ana V. Sauseda, MMC
Director of General Services / City Clerk
APPROVED AS TO FORM:
Steven Pacifico, City Attorney
BIG TIME DESIGN,
a Sole rietor,
By
Name. 0ltr,-51<(lter ,il{rrt De (ron
8 Title: