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HomeMy WebLinkAboutAHS Lease Agreement 2012 (2) LEASE AGREEMENT BETWEEN CITY OF ATASCADERO AND THE ATASCADERO HISTORICAL SOCIETY This Lease Agreement is entered into on this _f�i' day ofL�� s 'r v 2012, by and between the City of Atascadero, a municipal corporation, hereinafter after referred to as "City", and the Atascadero Historical Society, (formerly The Treasure of EI Camino Real), a non-profit corporation, hereinafter after referred to as "Society." The City and Society may be referred to collectively as the "Parties." SECTION 1: RECITALS 1. On October 11, 1965, the Atascadero School District, a public corporation, hereinafter called "District", and the Society, entered into a Lease Agreement for Atascadero Creek Reservations #2 & #3 (hereafter "1965 Lease"). 2. In February 2002, the owner of Creekside Lanes filed a lawsuit involving several entities including the District and the City, regarding damages his property received. As a result, all the involved parties entered into the Creekside Settlement Agreement in August 2004. 3. In August 2004, the District conveyed Atascadero Creek Reservation #3 to the City, in compliance with the Creekside Settlement Agreement. 4. In June 2009, the District executed a QuitClaim Deed to the City for Creek Reservation #2. 5. The City is the successor in interest to the District for the 1965 Lease. 6. The Society Board notified the City by a letter dated April 2, 2010 that they are in favor of the following: a) No longer wish to lease Creek Reservation #2 from the City, provided that if the Scout Cabin is determined to be on City property, the Society will be retained to supervise the eventual use and protection of the Cabin. b) Continue to lease Creek Reservation #3 until such time as they have clarification and commitment as to the disposition of the brick building (HVAC), acceptable to the Society Board, and contingent upon an improved East Mail orientation for the Colony House. c) Grant the City the right to work in the creek and adjoining park for the purposes of maintenance and upkeep of the creekbed and improvement to the Creekside Park, 7. The Society has agreed to no longer lease Atascadero Creek Reservation #2 from the City. 8. The Society desires to continue to lease Atascadero Creek Reservation #3, and has agreed to lease said property from the City. 9. The Society acknowledges and agrees that the Colony House and Rose Garden are located entirely on the Atascadero Creek Reservation #3, owned by the City. 10. The City, in consideration of the promises and covenants of Society set forth herein, agrees to lease Creek Reservation #3 to the Society for the purposes listed herein. 11. The Society is interested in preserving the Scout Cabin that is located on School District property. The City supports the preservation of historical structures, and will support the Society in its efforts to make sure the Scout Cabin ultimately is protected, retained, and ultimately under the protection, supervision and use of the Society. SECTION 2: LEASE TERMS 1. The Parties agree that the foregoing Recitals are true and correct and are hereby incorporated by reference. 2. The 1965 Lease Agreement is hereby terminated. 3. This Lease Agreement is entered into for the property known as Atascadero Creek Reservation #3 (more fully described as #3-A1, 3-A2, & 3-13). The Assessor's Parcel Numbers (APN) for Creek Reservation #3 are as follows: 029-361-003, 029-361-024, & 029-361-025 4. The Society will be accountable to fulfill the lease requirements, which include keeping Creek Reservation #3 in good order and free from all refuse, and shall promptly remove all ashes, garbage and refuse of any kind from the property during the term of this Lease. These are the same terms as the 1965 Lease, the previous lease on this property. 5. Premises. That the City hereby leases unto the Society, and Society hereby leases from the City, the property listed above in Section 2:3, located in the City of Atascadero, State of California. 6. Term. The term of this Lease Agreement, hereinafter referred to as "Lease," shall have a period of fifty-two (52) years beginning on July 1, 2012, and ending on June 30, 2064, unless sooner termination is provided herein. In the event the Society 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 upon 30 days written notice by either Party. Lease Agreement City of Atascadero 1 Atascadero Historical Society Page 2of7 7. The Society shall pay the sum of One Dollar and no cents ($1.00) per year payable at the commencement of each Lease year. 8. The Society may use the premises for the following purposes only: recreation, park, museum, rental for events, education and historic purposes only, including allowance for a live-in caretaker. SECTION 3: GENERAL PROVISIONS 1. Lease may not be assigned, sublet or transferred by the Society unless the City first gives its written consent. 2. The City will not be responsible to the Society for any loss of property from said premises, or for any injury, loss or damage to the Colony House or the contents thereof, placed on said real property as provided herein by the Society, however occurring. 3. The City shall have the right to enter said premises, upon reasonable notice to Society, at all reasonable hours to examine the same. 4. The Society hereby waives all claims for damages that may be caused by the City in re-entering and taking possession of the premises as herein provided, and all claims for damages that may result from the destruction of or injury to the premises thereby; and all claims for damages to or loss of such property belonging to the Society as may be in or upon the premises at the time of such re-entering, except for claims for damages arising directly from the gross negligence, wanton recklessness or intentional misconduct of the City. The Society also waives all claims against the City for damages to any property of the Society from any cause arising at any time, except for damages arising directly from the gross negligence, wanton recklessness or intentional misconduct of the City. 5. The City reserves the right at any time to make such reasonable rules and regulations as in its judgment may from time to time be necessary for the safety, care, and cleanliness of the premises, and for the preservation of good order therein. 6. The Society hereby agrees to indemnify and save harmless the City from any and all manner of damages, charges, suits, costs and expenses which it may sustain or be put to by reason of the Society's use of the said premises or by reason of anything relating thereto or by reason of this Lease or any of the provisions hereof, except for damages, charges, suits, costs and expenses arising directly from the gross negligence, wanton recklessness or intentional misconduct of the City. Lease Agreement City of Atascadero 1 Atascadero Historical Society Page 3 of 7 7. Nothing in this Lease shall obligate to the City the duty to comply with any law, including but not limited to, the American with Disabilities Act, which requires alteration, maintenance, or restoration to the Premises. 8. The City and the Society agree that each of the terms, conditions, and obligations of this Lease shall extend to and bind, or inure to the benefit of the respective parties hereto, and each and every one of their respective heirs, executors, administrators, representatives, successors and assigns. 9. The Society further agrees, prior to the commencement of this Lease, to purchase and maintain adequate insurance coverage in the name of the Society and in the name of the City in the amounts specified in Exhibit A attached to and part of this agreement. 10.The Society shall arrange for and pay for all of the utility hookups to said premises and shall pay all bills for water, gas, electrical service, and other public utility services used in, on or about said premises during the period of this Lease. 11.The Society agrees and promises that it will comply with and observe all applicable statutes, ordinances, rules and regulations of the Federal, State, Municipal, County or other public authority. 12.The City may terminate this Lease if the Society shall fail, neglect or refuse to perform and obey any term or condition set forth in this Lease; within thirty (30) days after the City has given to Society written notice of such a default, unless such failure, neglect or refusal by nature cannot be remedied within thirty (30) days of said notice and the Society has within thirty (30) days of the notice commenced and does thereafter continue diligent efforts to remedy such failure, neglect or refusal. 13.A waiver by the City of any failure or omission by the Society to comply with any of the terms and conditions of this Lease shall not constitute a waiver by the City of any other such failure or omission. 14.The Society shall have the right during the term of this Lease to place on the above described real property the Colony House, which is suitable to carry out the purposes of this Lease set out in Section 2, paragraph 8 herein above. Said building shall be the property of and belong exclusively to the Society, who shall at its own sole cost and expense pay for any and all repairs, maintenance and custodial care in, on and around said building. The Society shall at its own sole cost and expense pay for any and all insurance on said building. 15.The Society agrees to keep said real property in good order and free from all refuse, and shall promptly remove all garbage and refuse of any kind from said real property during the term of this Lease. Lease Agreement City of Atascadero I Atascadero Historical Society Page 4 of 7 16.At the end of this Lease term, or at any sooner termination of this Lease as provided herein, the Society agrees to surrender the above described real property to the City in as good condition as received, reasonable wear and tear excepted. The Society shall at its own sole cost and expense remove from said real property upon said end or termination the building placed thereon by the Society pursuant to this Lease, within sixty (60) days after said end or termination. If the building is not so removed by the Society from said real property by the end of said sixty (60) days, then the City shall have the right either to keep the building on said premises in which case said building shall automatically belong to and become the property of the City or of removing in any manner deemed appropriate to the City said building from said premises at the sole cost and expense of the Society in which event the Society shall pay to the City the cost thereof within sixty (60) days after the mailing by the City to the Society, postage prepaid, of an itemized bill which sets out the cost of said removal. 17.This Lease and exhibit contains the entire agreement with the City and the Society. All previous proposals and communications relative to this Lease, whether oral or written, are hereby superseded except to the extent that they have been incorporated into this Lease. No future waiver of, or exception to any of the terms, conditions, and provisions of this Lease shall be considered valid unless specifically agreed to in writing by all the parties. 18.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: CITY: LEASEE: City of Atascadero Atascadero Historical Society 6907 EI Camino Real 6600 Lewis Ave. Atascadero, CA 93422 Atascadero, CA 93422 ATTN: Wade McKinney, City Manager ATTN: Jim Wilkins, President IN WITNESS WHEREOF, the parties hereto have executed this Lease on the day and year first above written. CITY OF ATASCADERO ATASCADERO HISTORICAL SOCIETY a Wade G. McKinney �, ames Wilkins City Manager President Lease Agreement City of Atascadero 1 Atascadero Historical Society Page 5of7 EXHIBIT A INSURANCE REQUIREMENTS FOR LESSEE Lessee shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the Lessee's operation and use of the leased premises. The cost of such insurance shall be borne by the Lessee. Minimum Scope of Insurance Coverage shall be at least as broad as- 1, s:1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001). 2. Workers' Compensation insurance as required by the State of California and Employer's Liability insurance (for lessees with employees). 3. Property insurance against all risks of loss to any tenant improvements or betterments. Minimum Limits of Insurance Lessee shall maintain limits no less than: 1. General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance 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. 2. Employer's Liability: $1,000,000 per accident for bodily injury or disease. 3. Property Insurance: Full replacement cost with no coinsurance penalty provision. Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to and approved by the Entity. At the option of the Entity, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the Entity, its officers, officials, employees and volunteers; or the Lessee shall provide a financial guarantee satisfactory to the Entity guaranteeing payment of losses and related investigations, claim administration and defense expenses. Lease Agreement City of Atascadero 1 Atascadero Historical Society Page 6of7 Other Insurance Provisions The general liability policy is to contain, or be endorsed to contain, the following provisions: 1. The Entity, its officers, officials, employees and volunteers are to be covered as insureds with respect to liability arising out of ownership, maintenance or use of that part of the premises leased to the lessee. 2. The Lessee's insurance coverage shall be primary insurance as respects the Entity, its officers, officials, employees and volunteers. Any insurance or self- insurance maintained by the Entity, its officers, officials, employees or volunteers shall be excess of the Lessee's insurance and shall not contribute with it. 3. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled, except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the Entity. Acceptability of Insurers Insurance is to be placed with insurers with a current A.M. Best's rating of no less than ANI 1. Verification of Coverage Lessee shall furnish the Entity with original certificates and amendatory endorsements effecting coverage required by this clause. The endorsements should be on forms provided by the Entity or on other than the Entity's forms, provided those endorsements or policies conform to the requirements. All certificates and endorsements are to be received and approved by the Entity before work commences. The Entity reserves the right to require complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications at any time. Lease Agreement City of Atascadero 1 Atascadero Historical Society Page 7 of 7