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Sea Country Homes-2006-10 I i I ' INTEROFFICE MEMORANDUM TO: Tom Schwab, City Manager FROM: Richard Shields,Building and Safety/Public Works �— DATE: March 29,2006 SUBJECT: Lease Agreement for 22293 Barton Road, Grand Terrace, Ca 92313 Tom: Attached is the Lease Agreement for 22293 Barton Road. Please sign the agreement and I will forward it to Jeff Schaffer at Sea County Homes for signature. Thanks You Richard Shields LEASE AGREEMENT City of Grand Terrace Redevelopment Agency and Sea Country Homes,Inc. Date: April 1, 2006, at Grand Terrace, California. 1. FACTS: 1.1 The Landlord the City of Grand Terrace leases to Sea Country Homes the rear portion of 22293 Barton Road(Assessor's Parcel 1167-231-01). 1.2 The Landlord acknowledges receipt of$2,000.00 to be applied as follows: Last month's rent $1,000.00 First month's rent $1,000.00 1.3 The attached Exhibit"A"identifies the leased area. 2. TERM OF LEASE: 2.1 The lease commences April 1,2006, and expires April 1, 2007, and is a month to month tenancy. 2.2 The lease terminates on the last day of the term without further notice,but may be .extended for an additional 30 days with written notice from Tenant. 2.3 If Tenant holds over,.Tenant to be liable for damages at the daily rate of$100.00. 2.4 Cancellation. This agreement may be cancelled by either party with (30) days written notice to responding party. 3. RENT: 3.1 Tenant shall pay rent monthly, in advance, on the first day of each month including rent for any partial month prorated at 1/30th of the monthly rent per day. 3.2 Rent shall be paid in U.S. dollars by cash, check, or cashier's check, at,Landlord's address. Payable to the City of Grand Terrace Redevelopment Agency 22795 Barton Road, Grand Terrace, CA 92313. 3.3 Tent shall be tendered by mail or personal delivery. Page 1 of 5 I I 3.4 Tenant shall pay a late charge of$100.00 in the event rent is not received within five days of the due date. 3.5 Tenant shall pay$ 50.00 for each rent check returned for insufficient funds, and thereafter to pay rent by cash or cashier's check. 4. POSSESSION: 4.1 ` If Landlord is unable to deliver possession of the premises, Landlord will not be liable for any damage. 5. USE OF THE PREMISES: 5.1 The Tenant's use of the premises shall be for storage of residential construction materials, storage containers,and miscellaneous equipment for security. 5.2 No other use of the premises is permitted.Tenant may not conduct any activity which increases Landlord's insurance premiums. 5.3 Tenant will not use the premises for any unlawful purpose, violate any, government ordinance or building and tenant association rules, or create any nuisance. 5.4 Tenant shall deliver up the premises on expiration of the lease in as good a condition as when Tenant took possession. 5.5 Tenant shall fence area and install green screen coverings on fence. 5.6 Tenant shall install rock in storage area to control dust and erosion. 5.7 Tenant shall remove rock and fencing at,end of lease. i 6. APPURTENANCES: 6.1 Tenant shall have the right to use Landlord's access of ingress and egress. 7. SIGNS AND ADVERTISING: 7.1 Tenant will not constrict any sign or other advertising on the premises without the prior consent of Landlord. i Page 2 of 5 J I i 8. TENANT EVIPROVEMENTS/ALTERATIONS: 8.1 Tenant may not alter or improve the real estate without Landlord's prior consent.Tenant will keep the real estate free of all claims for any improvements and will timely notify Landlord to permit posting of notices for non-responsibility.. i 9. RIGHT TO ENTER 9.1 Tenant agrees to make the premises available on 24 hours'notice for entry by Landlord for necessary repairs, alterations, or inspection of the premises. 10. WASTE: 10.1 Tenant will not destroy, damage, or commit waste, or permit any person to do so on the property. 11. LIABILITY INSURANCE: 11.1 Tenant shall obtain and maintain commercial general liability insurance covering both personal injury and property damage to cover Tenant's use of the premises insuring Tenant and Landlord. 11.2 Tenant shall obtain insurance for this purpose in the minimum amount of $ 500,000.00. 11.3 Tenant shall provide Landlord with a Certificate of Insurance naming the Landlord as an additional.insured. The Certificate shall provide for written notice to Landlord should a change or zancellation of the policy occur. 11.4 'Each party waives all insurance subrogation rights it may have. 12. HOLD HARMLESS: 12.1 Tenant shall hold Landlord harmless for all claims, damages or liability arising out of the premises caused by Tenant or its employees or patrons. 13. DESTRUCTION: 13.1 In the event the premises.are totally or partially destroyed, Tenant agrees to repair the premises if the destruction is caused by Tenant or covered by its insurance. 13.2 Landlord shall repair the premises if the cause is not covered by insurance or is covered by Landlord's policy only. Page 3 of 5 14. ASSIGNMENT, SUBLETTING AND ENCUMBRANCE: 14.1 Tenant may not assign this lease onsublet any part of the premises, or further encumber the leasehold. 15. SURRENDER: 15.1 Tenant may surrender this lease only'by a written cancellation and waiver agreement with Landlord.. 16. EMINENT DOMAIN: 16.1 Should a portion or all of the premises be condemned for public use,Landlord may terminate the lease and Tenant's possession. If the lease is not terminated, 16.2 Any Tenant's damages shall come solely from the condemning authority. 17. WAIVER: 17.1 Waiver of a breach of any provision in this lease shall not constitute a waiver of any subsequent breach. Landlord's receipt of rent with knowledge of Tenant's breach does not waive Landlord's right to enforce the breach. 18. DEFAULT REMEDIES: 18.1 If Tenant breaches any provision of this lease, Landlord may exercise its rights, including the right to collect future rental losses after forfeiture of possession. 19. MISCELLANEOUS: 19.1 If an action is instituted to enforce this agreement,the prevailing party shall receive reasonable attorneys fees. 19.2 This lease shall be binding on all heirs,.assigns and successors. 19.3 This lease shall be enforced under California law. 19.4 This lease reflects the entire agreement between the parties. 19.5 This lease is not secured by a trust deed. Page 4 of 5 i i I agree to let the premises on the terms stated above. Date: April 1, 2006 Landlord: City of Grand Terrace Community Redevelopment Agency Address: 22795 Barton Road Grand Terrace, CA 92313-5295 Day Phone: (909) 430-2245 Fax: (909) 783-2600 Signature: Thomas Schwab, Executive Director-Redevelopment Agency I agree to occupy the premises on the terms stated above. Date: April 1, 2006 Tenant: Sea Country Homes Address: 2451 Impala Drive, Suite A Carlsbad, CA 92009 Day Phone: (858) 487-1429 Fax: (858) 487-7034 Signature: Jeff Schaffer Page 5,of 5