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HomeMy WebLinkAbout2010-002 RDA 6907 ECR Lease Agrmt LEASE AGREEMENT FOR THE CITY OF ATASCADERO 6907 EL CAMINO REAL THIS LEASE AGREEMENT is entered into on this Q?3 day of i brcar , 2010, by and between the Atascadero Community Redevelopment Agency, Californi , a municipal corporation (hereinafter referred to as "Agency"), and the City of Atascadero, California, a municipal corporation (hereinafter referred to as "City") RECITALS WHEREAS, City desires to operate a City Hall out of an Agency owned property, and has agreed to rent said space from Agency; and WHEREAS, the Agency, in consideration of the promises and covenants of City set forth herein, agrees to rent said property to City for the purpose of operating a City Hall, and for no other purpose NOW, THEREFORE, the parties hereto agree as follows 1 Premises The Agency will rent to City the premises located at 6907 EI Camino Real, Atascadero, California, (hereinafter referred to as "Premises"), for City Hall activities within the City of Atascadero 2 Term The term of this Lease Agreement (hereinafter referred to as "Lease") shall have a period of thirty-four (34) months beginning on March 1, 2010 and ending December 31, 2012, unless sooner termination is provided herein In the event the City shall continue in possession of the premises after the expiration of the Lease term, such possession shall not be considered a renewal of this Lease but a month to month agreement which shall be governed by the terms of this Lease and which may be terminated at any time 3 Option to Terminate City shall have the option to terminate this Lease if the premises are destroyed or damaged to the extent that they cannot be repaired within sixty (60) days If the damage can be repaired with sixty (60) days, it shall be the duty of the Agency to make such repairs promptly Agency and City shall have the right to terminate this Agreement without cause 4 Alterations to Agency's Facilities Improvements/Alterations by Agency- a Agency recognizes and understands that any tenant improvements requested by the City may be subject to the provisions contained in the California Labor 1 Code (commencing with Section 1720) relating to general prevailing wage rates and other pertinent provisions therein b Agency shall comply and stay current with all applicable building standards, which may change from time to time c The Agency and/or its authorized agents shall have the right to enter the premises at all reasonable times to inspect the condition of the premises, and to make necessary repairs d The Agency is committed to the revitalization and enhancement of Downtown, to this end, the Agency reserves the right to enter and improve the Agency- owned property, excluding the interior space leased by the City The Agency will notify the City of any improvement to the property and will not impact entrances and exits of the building The Agency is involved in a comprehensive revitalization program for Downtown, which will include improvements on this property as well as surrounding property Improvements may include building facade improvements, landscape, parking, access, lighting, creek stabilization, and/or any other activity/action that is benefiting of the Agency and/or the real property, or address health and safety issues and concerns Improvements/Alterations by City- a Any alterations, improvements or installation of fixtures to be undertaken by City shall have the prior written consent of Agency after City has provided plans for any such proposed alterations, improvements or fixtures to Agency in writing Agency shall not unreasonably withhold such consent. b City recognizes and understands that any renovation work and/or improvements undertaken by the City may be subject to the provisions contained in the California Labor Code (commencing with Section 1720) relating to general prevailing wage rates and other pertinent provisions therein c Any and all alterations or improvements made to the leased premises by City shall become the property of Agency upon expiration or terminating of this lease d All fixtures installed by the City shall remain City property, and may be removed by City at or prior to the expiration of this lease, provided, however, that such removal does not cause injury or damage to the leased premises, or in the event it does, the City shall restore the premises 5 Rental City shall pay Thirty-One Thousand One Hundred Thirty-three Dollars and No Cents ($31,133 00) rent per month to the Agency commencing March 1, 2010 through December 31, 2012, on the first day of each month At the option of the City, advance monthly rental payments may be made for any period through 2 the term of this Agreement (e g , quarterly), provided, however, in the event of holding over, this sentence shall have no force or effect and payments shall be made on the first day of each month Agency reserves the right to renegotiate this paragraph (section) subject to 60 days written notice 6 Telephone, Utilities & Custodial Services City will install and pay for telephone service, electric power, gas and heat, water and sewer service, trash collection, and all other services and utilities supplied to the leased premises during the entire term of this Lease, and shall promptly pay all connection and termination charges therefore, and shall provide custodial services for the interior and exterior, to include any landscaping, of the facility at its expense 7 Maintenance of Facility Agency shall keep the leased premises in such condition, and in compliance with federal, state, and local laws, ordinance, rules and regulations relating to fire, health, and safety City shall, during the term of this lease, maintain the interior portions of the leased space in a good, clean and safe condition City, at its own expense, shall repair all deteriorations or damage to the leased space or building as a result of lack of ordinary care Except as otherwise provided in this lease, Agency shall perform, at Agency's sole expense, all repairs and maintenance for roof, exterior, and plumbing for the building Any repairs by Agency shall be made promptly with first-class materials, in a good and workmanlike manner Except in the case of an emergency, Agency shall give City twenty-four (24) hours notice of its intention to enter the building for the purpose of making necessary repairs Except for cases of emergency, Agency shall make all repairs required hereunder as soon as is practical In the event Agency has not made a repair referred to in a written notice from City to Agency within thirty (30) days after the date of that notice, City shall have the right to make the repair and be reimbursed by the Agency if the full amount of the reimbursement is not delivered by Agency to City within ten (10) days after City's delivery to Agency of a written statement or bill evidencing the cost of the repair, City shall have the right to deduct the cost of the repair from the next monthly rent payable to Agency City shall notify Agency promptly of any damage to the leased premises resulting from or attributable to the acts or omissions of City, its invitees or its authorized representatives, and thereafter promptly repair all such damage at City's sole cost and expense 8 Insurance Coverage City will provide public liability coverage, property damage and insurance in the amount of One Million Dollars and No Cents ($1,000,000 00), in both City's and the Agency's name City shall file with the Secretary of the Redevelopment Agency copies of the Certificates of Insurance for said insurance coverage indicating that the City of Atascadero, its agents, 3 officers, and employees are additionally insured under said policies Said Certificate shall state that the policy(s) will not be terminated or cancelled without thirty (30) days advance written notice to Agency of termination or cancellation thereof Agency reserves the right to renegotiate this paragraph (section) subject to 30 days written notice 9 No Joint Venture Nothing in the Agreement is intended nor shall create between Agency and City an employer/employee relationship, a principal/agent relationship, or a joint venture relationship Agency shall neither have nor exercise any control or direction over the methods by which City shall perform functions and/or provide services City shall have no claim under this Agreement or otherwise against Agency for worker's compensation, unemployment compensation, vacation pay, sick leave, retirement benefits, Social Security benefits, disability insurance benefits, unemployment insurance benefits, or any other employee benefits, all of which shall be the sole responsibility of City City shall indemnify and hold Agency, its members, agents, or employees, harmless from any and all cost (including attorney's fees), loss, or liability by or on behalf of any member, agent, or employee of City, or by any government entity The occupancy of the premises by City shall be subject to reasonable rules and regulations of Agency, and City shall be subject to all provisions of applicable local, state and federal law 10 Parking City acknowledges and agrees that any parking spaces provided by Agency in and around the leased premises are solely for the convenience of the customers and employees of City, unless otherwise specifically designated by the Agency in writing Agency shall have the right to establish and enforce reasonable rules and regulations concerning the use of the parking area 11 Default: In the event that City shall become delinquent in payment of rent or shall City fail to keep or perform any of the terms or conditions of this Agreement, Agency shall give City thirty (30) days written notice of default, at the expiration of which period or at any time thereafter while such default continues, Agency may terminate this Agreement and exercise such remedies as Agency may have at law 12 Governing Law- The parties agree that the laws of the State of California shall govern this Agreement. Agency and City agree that any suit brought by either party against the other arising out of the performance of this Agreement shall be brought and maintained in the Superior Court of San Luis Obispo County 13 Disabilities Act: City agrees to comply with all applicable provisions of the Americans with Disabilities Act, with regard to alterations, maintenance, or restoration to the Premises 14 Voluntary Transfers City shall not sell, transfer or assign this Lease, or any part thereof, or interest therein, or hypothecate or grant any rights hereunder, or create or permit any subleases for the leased premises 4 15 Nondiscrimination City shall not discriminate, in any way, against any person on the basis of age, sex, race, color, creed, national origin or disability in connection with or related to the performance of this Lease 16 Mutual Indemnification It is mutually understood and agreed that: a Neither City, nor any officer or employee thereof, shall be responsible for any damage or liability occurring by reason of anything done or omitted to be done by Agency under or in connection with any work, authority or jurisdiction delegated to Agency under this agreement. It is also understood and agreed that, pursuant to Government Code Section 895 4, Agency shall fully indemnify and hold City harmless from any liability imposed for injury (as defined by Government Code Section 810 8) occurring by reasons of anything done or omitted to be done by Agency under or in connection with any work, authority or jurisdiction delegated to Agency under this agreement. b Neither Agency nor any officer or employee thereof, shall be responsible for any damage or liability occurring by reason of anything done or omitted to be done by City under or in connection with any work, authority or jurisdiction delegated to City under this agreement. It is also understood and agreed that, pursuant to government Code Section 895 4, City fully indemnify and hold Agency harmless from any liability imposed for injury (as defined by Government Code Section 810 8) occurring by reasons of anything done or omitted to be done by City under or in connection with any work, authority or jurisdiction delegated City under this agreement. 17 Binding on Successors City and Agency agree that each of the terms, conditions, and obligations of this Lease Agreement shall extend to and bind, or inure to the benefit of the respective parties hereto, and each and very one of their respective heirs, executors, administrators, representatives, successors and assigns 18 Notices. Any notices, payments or consents required or desired to be served or given by either party upon the other shall be addressed to the respective parties as set forth below- Agency- City- Executive Director City Manager Community Redevelopment Agency City of Atascadero 6907 EI Camino Real 6907 El Camino Real Atascadero, CA 93422 Atascadero, CA 93422 or, the respective parties shall designate such addresses as necessary from time to time 19 Heading Not Controlling Headings used in this Agreement are for reference purposes only and shall not be considered in construing this Agreement. 5 20 Entire Lease Agreement: This Lease Agreement contains the entire agreement between Agency and City All previous proposals and communications relative to this Agreement, whether oral or written, are hereby superseded except to the extent that they have been incorporated into this Agreement. No future waiver of, or exception to any of the terms, conditions, and provisions of this Agreement shall be considered valid unless specifically agreed to in writing by all parties 21 Partial Invalidity' If any provision in this Lease Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall nevertheless continue in full force without being impaired or invalidated in any way 22 Waiver' The waiver by any party to this Lease Agreement of a breach of any provision hereof, shall be in writing and shall not operate or be construed as a waiver of any other or subsequent breach hereof, unless specifically stated in writing 23 Execution The undersigned acknowledge having read and understood the foregoing IN WITNESS WHEREFORE, the parties hereto have executed this agreement on the day and year above and below written Community Redevelopment Agency City of Atasca//dero Date �� 3 , 2010 Date ala ' 2010 rill By. V&U �n � By' tMv Bob Kelley, Bo,6rd Chairperson Wade G McKinney, City anager ATTEST APPROVED AS T/QfORM e � By A4, By. Marcia Torgerson, A ncy Secretary General Counsel 6 • ITEM NUMBER. A- 5 DATE 02/23110 r-Fr t es r c'D�o;' Atascadero City Council Staff Report — City Manager Lease Agreement with Community Redevelopment Agency RECOMMENDATION Council authorize City Manager to execute the renewed Lease Agreement between the City of Atascadero and the Atascadero Community Redevelopment Agency DISCUSSION Background. The original City Hall was severely damaged as a result of the San Simeon earthquake on December 22, 2003, which made it necessary for City operations to relocate into a temporary facility When the temporary facility became slated for demolition to make way for the new Colony Square development, the only large building available for lease was the Creekside building, which had recently been purchased by the Redevelopment Agency When the City began negotiations with the Redevelopment Agency for the original lease, it was, of course, with the intent to keep the lease payment as small as possible At the time, it was determined that the average market rate was approximately $1 00 per square foot. Therefore, at 31,133 square feet, the City's monthly lease payment to the Redevelopment Agency has been $31,133 00, and this rate remains the same in the renewed lease agreement. During the four years that the City has been leasing the Creekside building, staff has been in negotiations with FEMA regarding the scope of work that would be funded by FEMA for the repair of the historic City Hall Meanwhile, the City's architect has been moving ahead toward completing construction documents, and construction work is scheduled to begin this summer The reconstruction work is projected to be complete in September 2012, however, the ending date of the renewed Lease Agreement has been extended to December 31, 2012, to provide ample time for possible delays Redevelopment law requires the Agency to charge the market rate to lease the Creekside building to the City Currently, FEMA has agreed to reimburse the City for lease payments through October 31, 2010 Staff is working with FEMA to extend that reimbursement time period through the life of the Historic City Hall Reconstruction project. ITEM NUMBER. A- 5 DATE 02/23110 The original Lease Agreement was for a four (4) year term, which expired June 1, 2009 Since that time, the City has occupied the building on a month to month basis, as the lease stipulates, "In the event the City shall continue in possession of the premises after the expiration of the Lease term, such possession shall not be considered a renewal of this Lease but a month to month agreement which shall be governed by the terms of this Lease " Because the City is still in need of a temporary facility, possibly until December 2012, a renewed Lease Agreement is desirable The terms of the renewed Lease Agreement are nearly identical to the original terms, with the exception that the renewed lease will cover a period of 34 months, from March 1, 2010 to December 31, 2012 In addition, both parties will have the right to terminate the lease without notice All other key features of the renewed Lease Agreement remain the same as the original agreement. Conclusion. Staff recommends approval of said Lease Agreement. FISCAL IMPACT The City of Atascadero will tender $31,133 00 each month of the Agreement for a total of $1,058,522 00 over the term of the lease The City expects to be reimbursed by FEMA for the lease payments made during the term ALTERNATIVES 1 The City Council may alter the terms and conditions of the Lease Agreement 2 The City Council may decline to renew the lease The terms of the renewed Lease Agreement are identical to the original terms, with the exception that the renewed agreement covers a period of 34 months and the notice period has been removed from the termination clause Alternative 2 is also not recommended, because it is unlikely that the City would be able find an alternate facility site, and the cost to move City operations would be an unnecessary expenditure ATTACHMENT Lease Agreement for the City of Atascadero, 6907 El Camino Real