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HomeMy WebLinkAboutC-3057 - Bayside Drive, 1601 - Tidelands Lease 1998 (BCYC)• FIRST AMENDMENT TO LEASE THIS FIRST AMEND TO LEASE (this "Amendment"), made this day of , 1998, by and between the City of Newport Beach, a municipa corporation and Charter City ("Lessor"), and Bahia Corinthian Yacht Club, a California non- profit corporation ("Lessee"), is made with reference to the following recitals: RECITALS A. Lessor and Lessee have entered into, or conc nt herewith are entering into, that certain Lease dated 1998 (the "Lease"). B. Lessor and Lessee desire to supplement and amend the Lease as hereinafter set forth. NOW, THEREFOR, Lessor and Lessee agree that the Lease is supplemented and amended as follows: 1. Add the word "Beach" to the name of the Lessor in the preamble to the Lease. 2. Add the phrase "Except as contemplated by Section 22 of this Lease," to the beginning of Section 18 of the Lease. 3. Add a new Section 22 to the Lease as follows: 22. PROVISIONS RELATING TO LEASEHOLD MORTGAGES A. Rights of Leasehold Mortgagees. (1) Definitions.' (a) The term "Leasehold Mortgage" as used herein shall include a mortgage, a deed of trust, a deed to secure debt, or other security instrument by which Lessee's interest under this Lease and the leasehold estate created thereby is mortgaged, encumbered, conveyed, assigned, or otherwise transferred, to secure a debt or other obligation, and any and all amendments, modifications, supplements, extensions and renewals thereof. (b) The term "Leasehold Mortgagee" as used therein shall refer to a holder of a Leasehold Mortgage in respect to which the notice provided for by Section 22A(3) has been given. (2) Leasehold Mortgage Authorized. On one or more occasions, without Lessor's prior consent, Lessee may mortgage or otherwise encumber Lessee's Leasehold Estate, JEKUK, 30277 389686 2 under one or more Leasehold Mortgages and assign this Lease as security for such Leasehold Mortgage or Mortgages. (3) Notice to Lessor. (a) If the holder of a Leasehold Mortgage shall provide Lessor with notice of such Leasehold Mortgage together with a true copy of such Leasehold Mortgage and the name and address of the Leasehold Mortgagee, Lessor and Lessee agree that, following receipt of such notice by Lessor, the provisions of this Section 22 shall apply in respect to such Leasehold Mortgage and Leasehold Mortgagee. In the event of any assignment of a Leasehold Mortgage or in the event of a change of address of a Leasehold Mortgagee or of an assignee of such Leasehold Mortgagee, notice of the new name and address shall be provided to Lessor. (4). Notices to Leasehold Mortgagees. Lessor, upon providing Lessee with any notice of: (i) default under this Lease, or (ii) a termination of this Lease, or (iii) a matter on which Lessor may predicate or claim such a default or termination, shall at the same time provide a copy of such notice to any Leasehold Mortgagee. No such notice by Lessor to Lessee shall be deemed to have been duly given unless and until a copy thereof has been so provided to any Leasehold Mortgagee. From and after the date such notice has been given to Lessee and any Leasehold Mortgagee, any Leasehold Mortgagee shall have the right to remedy, commence remedying or cause to be remedied any default or acts or omissions which are the subject matter of such notice, within the same cure period as is given Lessee, plus in each instance, the additional periods of time specified in this Section 22. Lessee authorizes each Leasehold Mortgagee to take any such action at such Leasehold Mortgagee's option and does hereby authorize entry upon the Premises by the Leasehold Mortgagee for such purpose. (5) Leasehold Mortgagee's Election to Cure. Anything contained in this Lease to the contrary notwithstanding, if any breach or default shall occur and remain uncured, Lessor shall have no right to terminate this Lease or exercise any other remedy unless, following the expiration of the period of time given Lessee to cure such breach or default, or the act or omission which gave rise to such breach or default, Lessor shall first notify any Leasehold Mortgagee of Lessor's intent to so exercise such remedy, such notice to be given at least thirty (30) days in advance of the proposed effective date of such exercise if such default is capable of being cured by the payment of money, and at least sixty (60) days in advance of the proposed effective date of such exercise if such default is not capable of being cured by the payment of money. The provisions of Section 22A(6) shall apply if, during such thirty (30) or sixty (60) day period, any Leasehold JHKUHL 30277 389686 2 -2- • • Mortgagee shall notify Lessor of such Leasehold Mortgagee's desire to exercise its rights to perform under Section 22A(6) and shall: (a) pay or cause to be paid all rent, and other paymentsmthen due and in arrears as specified in such notice and which may become due during such thirty (30) or sixty (60) day period; and (b) comply or in good faith, with reasonable diligence and continuity, commence to comply with all non -monetary requirements of this Lease then in default and reasonably susceptible of being complied with by such Leasehold Mortgagee. (6) Procedure on Default. (a) If any Leasehold Mortgagee shall have proceeded in the manner provided Section 22A(5), the period specified in Section 22A(5) during which Lessor may not terminate this Lease or exercise any other remedy shall be extended for a period of six (6) additional months, provided that such Leasehold Mortgagee shall, during such additional six (6) month period: (i) pay or cause to be paidall rent, and other monetary obligations of Lessee under this Lease as the same become due, and continue its good faith efforts to perform all of Lessee's other obligationsunder this Lease, excepting non -monetary obligations not reasonably susceptible of being cured or performed by such Leasehold Mortgagee; and (ii) if not enjoined or stayed, take steps to acquire or sell Lessee's interest in this Lease by foreclosure of the Leasehold Mortgage or other appropriate means and prosecute the same to completion with reasonable diligence. (b) If at the end of such additional six (6) month period such Leasehold Mortgagee is complying with Section 22A(6)(a), this Lease shall not then terminate, and the time for completion by such Leasehold Mortgagee of its. proceedings shall continue so long as such Leasehold Mortgagee is enjoined or stayed and thereafter for so long as such Leasehold Mortgagee proceeds to complete steps to acquire or sell Lessee's interest in this Lease by foreclosure of the Leasehold Mortgage or by other appropriate means with reasonable diligence and continuity. Nothing in this Section 22A(6)(b), however, shall be construed to extend this Lease beyond the original term hereof as extended by any exercised options; nor to require a Leasehold Mortgagee to continue such foreclosure proceedings after a breach or default has been cured. If THKUHL 30277 389686 2 -3- the Lessee's breach or default is cured and the Leasehold Mortgagee discontinues such foreclosure proceedings, this Lease shall continue in full force and effect as if no breach or default under this Lease has occurred. (c) The making of a Leasehold Mortgage shall not impose personal liability or any Leasehold Mortgagee for the performance of any of the terms, covenants or conditions on the part of the Lessee to be performed hereunder. Nothing contained herein shall require a Leasehold Mortgagee to commence any cure or performance on behalf of Lessee or, once having commenced such a cure or performance, to continue or complete such cure or performance or require a Leasehold Mortgagee to commence any remedy or exercise any right under its Leasehold Mortgage or once having commenced such remedy or exercise to continue or complete such remedy or exercise. (d) The purchaser at any sale of this Lease and of the leasehold estate hereby created in any proceedings for the foreclosure of or trustee's sale under any Leasehold Mortgage, or pursuant to any deed in lieu of foreclosure, shall be deemed to be an assignee or transferee of this Lease, and shall be deemed to have agreed to perform all of the terms, covenants and conditions on the part of the Lessee to be performed hereunder, but only from and after the date of such purchase and assignment, and only for so long as such purchaser or assignee is the owner of the leasehold estate created hereby. Any such purchaser or assignee shall not have any personal liability for any obligations of the Lessee accruing either before or after such purchaser's period of ownership. (e) Notwithstanding any other provision of this Lease, any sale of this Lease and of the leasehold estate hereby created in any proceedings for the foreclosure of or Trustee's sale under any Leasehold Mortgage, or the assignment or transfer of this Lease and of the leasehold estate hereby created in lieu of the foreclosure of any Leasehold Mortgage, shall be deemed to be a permitted sale, transfer or assignment of this Lease and of the leasehold estate hereby created, not requiring any consent or approval of Lessor. B. Termination and New Lease. (1) New Lease. In the event this Lease is terminated by reason of the happening of any breach or default under this Lease which is not cured by Lessee or a Leasehold Mortgagee under the provisions and within the time limits set forth above, or in the event of rejection or disaffirmance of this Lease pursuant to bankruptcy or insolvency law or other law affecting creditors rights, Lessor shall give prompt notice thereof to any Leasehold IHKUHL 30277 389686 2 -4- Mortgagee. Lessor shall, on written request of any Leasehold Mortgagee, made at any time within sixty (60) days after the giving of such notice by Lessor, enter into a new lease of the Premises with such Leasehold Mortgagee within thirty (30) days after receipt of such request, which new lease shall be effective as of the date of such termination of this Lease for the remainder of the term of this Lease, at the rent provided for herein, and upon the same terms, covenants, conditions and agreements as are herein contained; provided that such Leasehold Mortgagee shall: (a) pay to Lessor at the time of the execu- tion and delivery of said new lease any and all unpaid sums for rent and other charges payable by Lessee hereunder to and including the date thereof, less the net amount of all sums received by Lessor from any subtenants in occupancy of any part or parts of the Premises or improvements thereon up to the date of commencement of such new lease; and (b) on or prior to the execution and delivery of said new lease, agree in writing that promptly following the delivery of such new lease, such Leasehold Mortgagee will perform or cause to be performed all of the other covenants and agreements herein contained on Lessee's part to be performed to the extent that Lessee shall have failed to perform the same to the date of delivery of such new lease except such covenants and agreements which are not reasonably susceptible of performance by such Leasehold Mortgagee. (2) New Lease Priority. Any new lease made pursuant to Section 22B(1) and any renewal Lease entered into with a Leasehold Mortgagee pursuant to this Lease shall be prior to any mortgage or other lien, charge or encumbrance on the fee interest in the Premises and the tenant under such new lease shall have the same right, title and interest in and to the Premises and the improvements located thereon as Lessee had under this Lease. (3) Liability of New Lessee. The tenant under any such new lease shall be liable to perform the obli- gations imposed on the tenant by such new lease only during the period such person has ownership of the leasehold estate created thereby, subject to the possibility of exculpation noted in Section 22B(1). (4) Subleases and Rents. After the termination of this Lease and during the period thereafter during which any Leasehold Mortgagee shall be entitled to enter into a new lease of the Premises, Lessor shall not terminate any sublease or the rights of the subtenant thereunder unless such subtenant shall be in default under such sublease. During such period Lessor shall receive all rent and other payments due from subtenants, including subtenants whose SHKUHL 30277 389686 2 -5- attornment Lessor shall have agreed to accept, as agent of such Leasehold Mortgagee and shall deposit such rents and payments in a separate and segregated account in trust for the Premises, but may withdraw such sums, from time to time, to pay necessary operating expenses and carrying charges of the Premises; and, upon the execution and delivery of such new lease, shall account to the tenant under the said new lease for the balance, if any, (after application as aforesaid) of the basic rent, additional rents and other payments made under said subleases, and said tenant shall thereupon assign the basic rent, additional rents and other payments due under said subleases to any Leasehold Mortgagees of the new lease in the same manner as such rentals and other payments had been assigned to the Leasehold Mortgagees under this Lease. The collection of rent by the Lessor acting as an agent pursuant to this subparagraph shall not be deemed an acceptance by Lessor for its own account of the attornment of any subtenant unless Lessor shall have agreed in writing with such subtenant that its tenancy shall be continued following the expiration of any period during which a Leasehold Mortgagee may be granted a new lease in which case such attornment shall take place upon such expiration but not before. C. Miscellaneous Provisions for Leasehold Mortgagees. (1) Leasehold Mortgagee Need Not Cure Specified Defaults. Nothing herein contained shall require any Leasehold Mortgagee, as a condition to the exercise of any of its rights hereunder, to cure any breach or default of Lessee not reasonably susceptible of being cured by such Leasehold Mortgagee, including without limitation any breach or default under Sections 19(a)(iii), (iv) and (v). (2) Consent of Leasehold Mortgagee Required. No cancellation, termination, surrender or modification of this Lease shall be effective as to any Leasehold Mortgagee unless either consented to in writing by such Leasehold Mortgagee or made pursuant to and in compliance with this Section 22. (3) Eminent Domain. So long as any Leasehold Mortgagee shall exist, the proceeds arising from a condemnation shall be disposed of as provided for in such Leasehold Mortgage. (4) Casualty Loss. A standard Lender's Loss Payable endorsement naming each Leasehold Mortgagee may be added to any and all insurance policies required to be carried by Lessee hereunder. Nevertheless, the provisions in any Leasehold Mortgage for the application of insurance proceeds shall be subject to the provisions of this Lease with respect thereto and, in the event of any conflict between the provisions of this Lease and the provisions of IHKUHL 30277 389686 2 -6- any Leasehold Mortgage with respect thereto, the provisions of this Lease shall control. (5) Arbitration and Legal Proceedings. Lessor shall give any Leasehold Mortgagee prompt notice of any arbitration or legal proceedings between Lessor and Lessee involving obligations under this Lease. Any Leasehold Mortgagee shall have the right to intervene in any such proceedings and be made a party to such proceedings, and the parties hereto do hereby consent to such intervention. Lessor shall also give any Leasehold Mortgagee notice of, and a copy of, any award or decision made in any such proceedings. Anything contained in this Lease to the contrary notwithstanding, in the event Lessee shall fail to appoint an arbitrator under circumstances where Tenant is required or authorized to do so, a Leasehold Mortgagee shall have an additional period of thirty (30) days, after notice by Lessor that Lessee has failed to appoint such arbitrator, to make such appointment, and the arbitrator so appointed shall thereupon be recognized in all respects as if he had been appointed by Lessee. (6) Notices. No notice to be given by Lessor to any Leasehold Mortgagee or by any Leasehold Mortgagee to Lessor shall be effective unless in writing and, if to any Leasehold Mortgagee, sent by registered mail to the most recent address furnished Lessor pursuant to Section 22A(2), and if to Lessor, sent by registered mail to the address set forth in Section 21(c). (7) Erroneous Payments. A Leasehold Mortgagee making any payment to Lessor in error or pursuant to Lessor's wrongful, improper or mistaken notice or demand shall be entitled to the return of any such payment or portion thereof. If, after any such payment by a Leasehold Mortgagee, the Lessee pays the same or any part thereof to Lessor, Lessor shall promptly refund said payment or portion thereof to such Leasehold Mortgagee. (8) Limitation on Lessor's Right to Encumber Fee. Any mortgage now or hereafter placed on Lessor's fee interest in the Premises shall be subject to this Lease, to any new lease created pursuant to Section 22B, to any mortgage now in existence on the leasehold estate as permitted by this Lease or such new lease, and to Lessee's right, as permitted by this Lease or such new lease, subsequently to encumber the leasehold estate created hereby or thereby. (9) No Rights to Encumber Fee of Lessor. The provisions of this Section do not give to any person whatsoever the right to mortgage, hypothecate or otherwise to encumber or to cause any liens to be placed against the freehold estate of Lessor, nor shall said provisions be JRKTJTIL 30277 389686 2 -7- construed as resulting in a subordination in whole or in part of the freehold estate of Lessor to any indebtedness of Lessee. (10) Performance by Leasehold Mortgagee. Any Leasehold Mortgagee shall have the right, but not the obligation, to make any payment, perform or cause to be performed any act, or otherwise comply or cause compliance with any and all terms, covenants and provisions of this Lease to be complied with by Lessee, and Lessor shall accept any such payment, performance or compliance by any Leasehold Mortgagee as if such payment, performance or compliance had been made by Lessee. (11) Rights of Leasehold Mortgagees. The exercise by any Leasehold Mortgagee of its rights to obtain possession of the Premises, including without limitation the right to commence an action against the Lessee for the appointment of a receiver, shall not constitute a breach or default under this Lease. (12) Non -Merger. So long as any Leasehold Mortgage is in existence, unless the Leasehold Mortgagee thereof shall otherwise expressly consent in writing, the fee title to the. Premises and the leasehold estate therein created by this Lease shall not merge but shall remain separate and distinct, notwithstanding the acquisition of both said fee title and said leasehold estate by Lessor, Lessee or by a third party, by purchase or otherwise. (13) Estoppel Certificate. Lessor shall, without charge, at any time and from time to time within ten (10) days after written request of Lessee or any Leasehold Mortgagee to do so, certify by written instrument duly executed and acknowledged to any Leasehold Mortgagee or purchaser, or proposed Leasehold Mortgagee or purchaser, or any other person, firm or corporation specified in such request: (a) as to whether this Lease has been modified, supplemented, amended, extended or renewed and if so, the substance and manner of such modification, supplement, amendment, extension or renewal; (b) as to the validity and force and effect of this Lease in accordance with its provisions; (c) as to the existence of any breach or default hereunder or any circumstance which, with the giving of notice or the passage of time, or both, would constitute a breach or default hereunder; (d) as to the existence of any offsets, counterclaims or defenses to the enforcement of this Lease on the part of either Lessor or Lessee; (e) as to the commencement and expiration dates of the term of this Lease; and (f) as to any other matters as may be reasonably so requested. Any such certificate may be relied upon by Lessee and any other person, firm or corporation to whom the same may be exhibited or delivered, and the contents of such certificate shall be binding upon Lessor. JHKUHL 30277 389686 2 -8- (14) Survival. The provisions of this Section 22 shall survive the termination, rejection or disaffirmance of this Lease and shall continue in full force and effect thereafter to the same extent as if this Section 22 was a separate and independent contract made by Lessor and any Leasehold Mortgagee and, from the effective date of such termination, rejection or disaffirmance of this Lease to the date of execution and delivery of any new lease pursuant to Section 22B, such Leasehold Mortgagee may use and enjoy the Premises without hindrance by Lessor or any person claiming by, through or under Lessor so long as such Leasehold Mortgagee or any person claiming by, through or under such Leasehold Mortgagee complies with the terms of this Lease except as otherwise provided in Section 22C(1). 4. Except as expressly set forth herein, the Lease remains unmodified and in full force and effect. IN WITNESS WHEREOF, the parties have executed this Amendment effective as of the date first written above. LESSOR LESSEE City of Newgort Bpach Bahia Corinthian Yacht Club Attest: pqm City Clerk Appr to form: As_t. _ y Attorney By: Its: JHKIJHL 30277 389686 2 -9- • LEASE THIS LEASE, made this 7th day of May, 1998, by and between the City of Newport, a municipal corporation, and Charter City, hereinafter, "Lessor" and the Bahia Corinthian Yacht Club, a California, non-profit Corporation, hereinafter, "Lessee", is made with reference to the following recitals: RECITALS A. Under the provisions of the Beacon Bay Bill (Chapter 740 of the Statues of 1978), Lessor is the grantee of certain harbor tidelands, located in the City of Newport Beach, County of Orange, ("Tidelands Grant"); B. Lessee currently operates a marina in and over a portion of those tidelands under Harbor Permit 0101-1801-1; C. Harbor Permit 0101-1801-1 is issued to Califomia Recreation, a dba of The Irvine company, the owner of the upland property adjacent to the tidelands; D. Lessee has acquired the upland property adjacent to the tidelands; E. The parties desire to enter into a long-term lease in lieu of a City Harbor Permit, and F. The Marina use to be made of these tidelands, and the terms and conditions in this lease are consistent with the provisions of the City Charter and Ordinances of Lessor, and are consistent with the provisions of the Tideland's Grant; and G. Lessor and Lessee entered into that certain Option Agreement for the Lease of Real Property dated as of October 4, 1995 (the "Option Agreement") granting Lessee the right to enter into a lease for the premises on the terms and conditions set forth herein. Lessee has duly exercised such option, all conditions precedent to such exercise have been satisfied, and there exists no event of default by Lessee under the Option Agreement as of the date of the exercise of the option by Lessee or the date hereof. NOW THEREFORE, THE PARTIES AGREE: 1. LEASED PREMISES In consideration of the rent to be paid and the covenants and conditions to be observed and performed by Lessee, Lessor leases to the Lessee those tidelands described in Exhibit "A"and depicted on the map attached, as Exhibit "B" (the "Premises"). Lessor reserves all oil, oil rights, gas, minerals, mineral rights, natural gas rights and other hydrocarbon substances in and under the Premises and the right to grant and transfer the same, together with all necessary and convenient rights to explore for, develop, produce and extract and take the same, subject to the express limitation that any and all operations for the exploration, development, production, extraction and taking of any such substance shall be carried on at levels below the depth of five hundred feet (500') from the surface of the land by means of wells, derricks and other equipment from surface locations on adjoining or neighboring land, and subject further to all restrictions and regulations concerning the drilling for, and production of, oil, gas, minerals, petroleum and other hydrocarbon substances specified in the Newport Beach City Charter or the Newport Beach Municipal Code. 2 2. TERM The Term shall commence on the date first written above, and shall expire upon the thirty-fifth (35) anniversary thereof (the "Expiration Date"), unless sooner terminated as provided in this Agreement. 3. QUIET POSSESSION So long as no default by Lessee has occurred under this Lease, Lessee shall peaceably and quietly use and enjoy the Premises for the Term, without hindrance or interruption by Lessor or any other person or persons claiming by, through or under Lessor. Lessor shall in no event be liable in damages or otherwise, nor shall Lessee be released from any obligations hereunder, because of the interruption or termination of any service provided by the Lessor (such as, water or sewer service), or a termination, interruption or disturbance of any service attributable to any act or neglect of Lessor or its servants, agents, employees, licensees, business invitees, or any person claiming by, through or under Lessee. 4. IMPROVEMENTS TO LEASED PREMISES Lessor and Lessee acknowledge that Lessee has constructed major improvements on and adjacent to the Premises. These improvements include, but are not necessarily limited to, bulkheads, piers, docks, floats and related improvements which comprise a marina consisting of 2,504 lineal feet of slips for docking of boats, (collectively, the "Marina improvements") as shown on Exhibit "B." Of the 2,504 lineal feet of slips for docking boats, 2,079 lineal feet of such slips are located on State Tidelands, which are 3 the subject of this Lease and shall serve as the basis for calculating rent herein below. 5. RENT Upon execution of this lease Lessee shall pay to Lessor the sum of twenty-nine thousand, two hundred, fifty-six dollars and fifty-one cents ($29,256.51), in twelve (12) equal monthly installments of two thousand four hundred and thirty-eight dollars and four cents ($2,438.04) payable on the first of each month, and every year thereafter. Lessee shall pay rent which sum is equal to nine percent (9%) of the annual gross receipts from slip rentals generated by 2,079 lineal feet of marina slips at a rental rate of thirteen dollars and three cents ($13.03) per lineal foot, the ("rental rate") or such rental rate as may be adjusted as provided in Paragraph 6 below. 6. RENT ADJUSTMENT/MINIMUM RENT Every year, on the anniversary date of the Lease, the rental rate shall be adjusted upwards or downwards in direct proportion to the weighted average increase or decrease in the rate per lineal foot of slips in the "comparable marinas" described below, but in no event shall the rent adjust below the then prevailing commercial harbor permit fee paid by other commercial users within lower Newport Harbor. The weighted average rate per lineal foot of slips shall be determined by the following "comparable marinas.": Bayside Marina, Villa Cove Marina, Balboa Yacht Basin, Balboa Marina and Bayshores Marina. From the list of "comparable marinas" the following size categories shall be excluded from the weighted average calculations: Bayside Marina, forty sixt foot (46') to seventy four foot (74'); Bayshores Marina, sixty eight foot (68') to eighty two foot (82'). If the method of 4 determining rental rates in the comparable marinas should change, Lessor agrees to consult with Lessee to establish a comparable method to determine the future rental rates. 7. ALTERATIONS Lessee shall have the right to make, at its sole expense, such nonstructural changes, alterations, improvements and additions in and to the marina improvements, but such changes shall conform to the City's Harbor Permit Policies and Exhibit "B". Structural changes shall not be made to any marina improvement without first submitting written plans and specifications of the proposed change, alteration or addition to the Lessor and obtaining Lessor's written approval. Lessee shall make, at its expense, such changes, alterations or additions in and to structures on the Premises that may be required by any public law ordinance from time to time, applicable to Lessee's use and occupancy of the Premises. 8. MARINA MAINTENANCE Lessee at its sole cost and expense, shall keep and maintain all marina improvements and related fixtures and personal property in first class order, condition and repair. Lessee shall maintain and operate not less than 2,079 lineal feet of slips available for rent. Maintenance dredging bayward of the property line, between the bulkhead line and the pierhead line, shall be the responsibility of the Lessee for the zone delineated by bayward prolongations of upland side property lines out to the U.S. project line. The Lessee agrees that the Lessor may go upon the leased Premises and make any i necessary repairs to the Premises, and perform any work therein: (i) Which may be necessary to comply with any laws, ordinances, rules or regulations of any public entity; (ii) That Lessor is obligated to make, under the terms of this Lease; or (iii) That the Lessor may deem necessary to prevent waste or deterioration of the Premises, if the Lessee does not make or cause such work to be performed promptly and diligently after receipt of written demand, therefore from the Lessor. Nothing herein contained shall apply any duty on the part of the Lessor to do any work which the Lessee may be required to do, nor shall it constitute a waiver of Lessee's default. No exercise by the Lessor of any rights reserved, shall entitle the Lessee to any damage for any injury or inconvenience occasioned thereby, or to any abatement of rent, however, such repairs once commenced, shall be completed in a timely manner. In the event that Lessor makes, or causes to be made, any repairs, within the Term of this Lease that is Lessee's obligation to make, Lessee shall upon demand, pay to the Lessor the cost of such repairs, which amounts shall be due and payable upon demand and shall bear interest from the date of demand, until totally paid at the rate of nine percent (9%) per annum. • • 9. USE OF THE PREMISES During the Term of this Lease, Lessee shall use and occupy the Premises, principally for the operation of a marina. The marina use shall be limited to the rental of boat slips, dock lockers, dry storage and related uses. Lessee shall not commit or permit the commission by others of any waste on the Premises. Lessee shall not maintain any nuisance, as defined in Section 3479 of the California Civil Code on the leased Premises. Lessee shall not unreasonably interfere with the rights of other harbor permittees or nearby residents, and Lessee shall not use or permit the use of the Premises for any unlawful purpose, or in violation of any provision of law. 10. UTILITIES Lessee shall be solely responsible for obtaining and shall promptly pay for all water, power, sewer, and other utility services provided to the Premises. 11. RIGHT TO ENTER Lessor expressly reserves the right to enter the Premises and all improvements for any purpose associated with this Lease or for carrying out any function required by law, or the rules, regulations or management policies of Lessor. Lessor shall have a right of reasonable access to the Premises across Lessee owned or occupied lands adjacent to the Premises for any purpose associated with this Lease. 12. RULES, REGULATIONS AND TAXES (a) Lessee shall comply with and be bound by all presently existing or subsequently enacted policies, regulations, statutes or ordinances of Lessor, including, 7 but not limited to, rules and regulations prescribed under Council Policy H-1 (Harbor Permit Policies), or any other government agency or entity having lawful authority and jurisdiction. (b) Lessee understands and agrees that a necessary condition for the granting and continued existence of this Lease is that Lessee obtain and maintain all permits or other entitlements. (c) During the Term of this lease, Lessee shall pay, prior to delinquency, any and all taxes assessed against Lessee's possessory interest under this Lease and all other taxes, assessments, user fees or service charges imposed on or associated with the leasehold interest, or personal property or improvements on the Premises, and such payment shall not reduce rent due Lessor under this Lease, and Lessor shall have no liability for such payment. 13: ENVIRONMENTAL REQUIREMENTS (a) Lessee shall practice conservation of water, energy, and other natural resources and shall prevent pollution and harm to the environment. Lessee shall not violate any law or regulation whose purpose is to conserve resources or to protect the environment. (b) Lessee shall not use, nor permit the use of, any hazardous wastes or materials in the construction, reconstruction or renovations of or use of the marina improvements in violation of any applicable law, regulation, code or ordinance. Lessee shall, at its expense, comply, and cause each of its members, licensees and/or concessionaires of space in the marina or elsewhere adjacent to the Premises to comply with all applicable laws, regulations, codes and ordinances relating to any hazardous regulated material, including obtaining and filing all applicable notices, permits, licenses and similar authorizations. Lessee shall be fully responsible to clean up any hazardous wastes, substances or materials as may be required under Federal, State or local law, regulation, code or ordinance that are manufactured, generated, used, placed, disposed, stored, or transported on the Premises by Lessee, its members, licensees and concessionaires during the Lease Term and shall comply with and be bound by all applicable provisions of such Federal, State or local law, regulation, code or ordinance dealing with such wastes, substances or materials. Lessee shall notify Lessor and the appropriate governmental emergency response agency(ies) immediately in the event of any release or threatened release of any such wastes, substances or materials. 14. INDEMNITY (a) Lessee agrees to defend, indemnify, protect and hold Lessor harmless from and against any and all liability, claims, damages, penalties, actions, demands or expenses of any kind or nature, including damage to any property and injury (including death) to any person (collectively, "Claims"), arising from Lessee's use or occupation of the Premises of from any activity, work or things done, permitted or suffered by Lessee, or from any activity, work or things done, permitted or suffered by Lessee or any omission of Lessee on or about the Premises or from any litigation concerning any of the foregoing in which Lessor is made a party Defendant. Lessee shall not be required hereunder to defend, indemnify or hold Landlord or any other person or entity indemnified under this Section harmless from or against any of the Claims to the extent such Claim arises solely out of the negligence or willful misconduct of Lessor. This obligation to indemnify shall include reasonable_ attorneys' fees and investigation costs and all other reasonable costs, expenses and liabilities incurred by Lessor or its counsel from the first notice that any claim or demand is to be made or may be made. (b) Upon receiving knowledge of any Claim that Lessor believes is covered by this indemnity, Lessor shall give Lessee notice of the matter and an opportunity to defend it, at Lessee's sole cost and expense, with legal counsel satisfactory to Lessor in its sole and absolute discretion. Lessor may also require Lessee to so defend the matter. So long as Lessee shall be defending any such Claim, Lessor shall not settle such claim without the consent of Lessee. (c) Lessee shall notify Lessor immediately in case of any accident, injury or casualty on the Premises. 15. INSURANCE (a) Lessee shall obtain and maintain in full force and effect during the Term of this Lease, comprehensive general liability insurance and property damage insurance, with such coverage and limits as may be reasonably requested by the Lessor from time to time, but in no event for less than the sum(s) specified below, insuring Lessee and Lessor against any and all claims or liability arising out of the ownership, use, occupancy, condition or maintenance of the Premises and all improvements. 10 (i) Comprehensive General Liability Insurance. Lessee shall maintain Comprehensive General Liability Insurance with a combined single limit for bodily injury and property damages of Two Million Dollars ($2,000,000), (which amount shall be subject to periodic adjustment as may be determined by Lessor upon one hundred eighty days (180) prior notice. The limits of liability of the insurance coverage specified in this paragraph may be provided by any combination of primary and excess liability insurance policies. (ii) Property Insurance -Construction. During construction of any improvements on the Premises, Lessee shall maintain builder's risk insurance against "all risk" or physical loss, including without limitation the perils of flood, collapse and transit, with deductibles acceptable to Lessor, covering the total cost of work performed, equipment, supplies and materials furnished on a replacement cost basis. Lessee shall be permitted to obtain and maintain flood insurance in such amounts and forms as are available, from time to time, under National Flood Insurance Program. (iii) Property Insurance. Lessee shall obtain insurance on the marina improvements and shall maintain insurance continuously during the Term, against "all risk" perils of physical loss, including, but not limited to, flood, fire, lightning, riot and civil commotion, vandalism 11 and malicious mischief. Such insurance shall be in amounts not less than the then full replacement cost of the marina improvements, without deduction for depreciation. Such policies of insurance shall contain the "Replacement Cost Endorsement." Such full replacement cost shall pertain to the Project and Furnishings and be determined not less often than each two (2) years during the Term. (b) Insurance carriers shall be licensed and approved to do business in California having a general policyholders' rating of not less than B+ and financial rating or not less than "VII" in the most current Best's Key Rating Guide. (c) The insurance policy or policies shall name the Lessor, its officers, agents and employees as additional insureds. Lessee shall provide Lessor with a certificate of such insurance and shall keep such certificate current. The policy (or endorsement) must provide that the insurer will not cancel the Lessee's coverage without thirty (30) days prior written notice to the Lessor. The Lessor will not be responsible for any premiums or other assessments on the policy. The coverage provided by the Lessee shall be primary and non-contributing. (d) The insurance coverage specified in this Lease shall be in effect at all times during the Lease Term and subsequently until all of the Premises have been either accepted as improved, by Lessor, or restored by Lessee. (e) Lessee shall not commit or permit the commission of any acts on the Premises that would cause the cancellation of any liability or other insurance policy, 12 insuring either the Premises or the improvements on the Premises. Lessee shall, at its own cost and expense, comply with any and all requirements imposed by insurance companies that carry the policies described above. (f) either. Each policy of insurance procured pursuant to the Section shall contain, (i) A waiver by the insurer of the right of subrogation against either party hereto for negligence of such party; or (ii) A statement that the insurance shall not be invalidated should any insured waive in writing prior to a loss any or all right of recovery against any party for loss described in the insurance policy. Lessor and Lessee each hereby waives any and all rights of recovery against the other, and against it shareholders, officers, directors, employees, subsidiaries, partners, servants, agents and representatives, for loss or damage arising from any cause insured against under the form of insurance policies required to be carried pursuant to this Section or under any other policy of insurance carried by either Lessor or Lessee. Lessee and Lessor each agrees to use reasonable efforts to obtain its liability insurance carriers' permission as to the waiver of subrogation described above in this Section. 13 (g) Lessee shall at all times observe and comply with the requirements of all policies of insurance° in force with respect to the Premises or any part thereof, and Lessee shall so perform and satisfy the requirements of the companies writing such policies so that, at all times, companies of good standing reasonably satisfactory to Lessor shall be willing to write or to continue such insurance. Lessee shall, if any member, licensee, concessionaire or other user of any portion of the Premises engages in any activity in violation of the requirements of all policies of insurance in force with respect to the Premises, or any party thereof, take steps, immediately upon knowledge of such activity, to remedy or prevent the same, as the case may be. 16. CASUALTY Lessee shall promptly cause the marina improvements, or any part, thereof, which is damaged or destroyed, to be repaired and restored to its original condition whether or not required to be insured against, at Lessee's sole cost and expense. Such repair and restoration shall be commenced in good faith and with all reasonable diligence within a reasonable diligence within a reasonable period of time following casualty and shall be completed with due diligence. 17. NO ABATEMENT OF RENT Throughout the Term, no direct or indirect destruction of or damage to the marina improvements or any other personal property on the Premises or any part thereof or elsewhere by fire or other casualty whatsoever, whether such damage or destruction be partial or total, shall permit Lessee to surrender or terminate the Lease or relieve Lessee 14 from its obligation to pay in full the rent and other sums and charges payable by Lessee hereunder or from any other obligation under the Lease, except as otherwise expressly set forth herein. 18. ASSIGNMENT, ENCUMBRANCING OR SUBLETTING (a) Lessee shall not either voluntarily or by operation of law, assign, transfer, mortgage, pledge, hypothecate or encumber this Lease and shall not sublet the Premises, in whole or in part, or allow any person other than the Lessee's employees, members, agents, servants and invitees to occupy or use all or any portion of the Premises without the prior written consent of Lessor which consent shall not be unreasonably withheld. (b) The following shall be deemed to be an assignment or transfer within the meaning of this Lease: (i) If Lessee is a corporation, any dissolution, merger, consolidation or other reorganization of Lessee or sale or other transfer of a percentage of capital stock of Lessee which results in a change of controlling persons, or the sale or other transfer of substantially all the assets of Lessee. (ii) If Lessee is a partnership, a transfer of any interest of a general partner, a withdrawal of any general partner from the partnership, or the dissolution of the partnership. 15 • • (c) This Lease is appurtenant to adjoining littoral or riparian land and/or uplands, and Lessee shall not transfer or assign its ownership interest or use rights in such adjoining land separately from the leasehold rights granted by this Agreement without the prior written consent of Lessor. 19. DEFAULT AND REMEDIES (a) The occurrence of any one or more of the following shall constitute a default by Lessee: (i) Failure of Lessee to pay rent due hereunder within thirty (30) days after written notice from Lessor; or (ii) Any failure by Lessee to perform any of the other terms, conditions or covenants of this Lease to be observed or performed by Lessee after thirty (30) days written notice from Lessor, or (iii) Lessee becoming insolvent or filing any debtor proceedings, or should any adjudications in bankruptcy be rendered against Lessee, or should Lessee take or have taken against it, in any court pursuant to any statute either of the United States or of any State, a petition in bankruptcy or insolvency or for reorganization or for the appointment of a receiver or trustee of all or a portion of Lessee's property, and should the same not be discharged within one hundred twenty (120) days thereafter; or 16 (iv) Lessee permitting the Premises to become vacant or unoccupied for fifteen (15) consecutive days after written notice to Lessee (except for vacancies caused by any Force Majeure or by remodeling, reconstruction, alterations or repairs permitted under this Lease); or (v) The appointment of a trustee or receiver to take possession of substantially all of the assets of Lessee located at the Premises or Tenant's interest in this Lease or the Premises, where possession is not restored within thirty (30) days. (b) Except for the payment of rent, if the nature of Lessee's default or breach under this paragraph is such that more than thirty (30) days are reasonably required for its cure, then Lessee shall not be deemed to be in default or breach if Lessee commences such cure within such thirty (30) day period and diligently proceeds with such cure to completion. (c) Remedies In the event of a default or breach by Lessee and Lessee's failure to cure such default or breach, Lessor may at any time and with or without notice do any one or more of the following: (i) Re-enter the Lease Premises, remove all persons and property, and repossess and enjoy such Premises. (ii) Terminate this Lease and Lessee's right of possession of the Lease Premises. Such termination shall be effective upon Lessor's giving written notice and upon receipt of such notice, Lessee shall 17 immediately surrender possession of the Lease Premises to Lessor. (iii) Maintain this Lease in full force and effect and recover any rental, royalty, or other consideration as it becomes due, without terminating Lessee's right of possession, regardless of whether Lessee shall have abandoned the Lease Premises. (vi) Exercise any other right or remedy which Lessor may have at law or equity. 20. RESTORATION OF PREMISES (a) Upon expiration or sooner termination of this Lease, Lessor upon written notice, may take title to any or all improvements, including fills, or Lessor may require Lessee to remove all or any such improvements at its sole expense and risk; or Lessor may itself remove or have removed all or any portion of such improvements at Lessee's sole expense. Lessee shall deliver to Lessor such documentation as may be necessary to convey title to such improvements to Lessor, free and clear of any liens, mortgages, loans or any other encumbrances. (b) In removing any such improvements, Lessee shall restore the Premises as nearly as possible to the conditions existing prior to their installation or construction. (c) All plans for and subsequent removal and restoration shall be to the satisfaction of Lessor and shall be completed within ninety (90) days after the expiration or sooner termination of this Lease. 18 4 (d) In removing any or all the improvements, Lessee shall be required to obtain any permits or other governmental approvals as may then be required by lawful authority. 21. ADDITIONAL PROVISIONS (a) Waiver (i) No term, covenant, or condition of this Lease and no default or breach of any such term, or condition shall be deemed to have waived by Lessor's acceptance of a late nonconforming performance or otherwise, such a waiver is expressly acknowledged Lessor in writing. (ii) Such waiver shall not be deemed to be a of any other term, covenant or condition this Lease. (b) Time Time is of the essence of this Lease and each and all its terms, covenants or conditions in which is a factor. (c) Notice All notices required to be given under this Lease be given in writing, sent by U.S. Mail, to Lessor at: City of Newport Beach 3300 Newport Boulevard Newport Beach, Califomia, 92658 Attention: City Manager 19 • and the Lessee at the address specified in this Lease. Lessee shall give Lessor notice of any change in its name, address or telephone number. Until such notice of change, all notices to Lessee shall be sent to: BAHIA CORINTHIAN YACHT CLUB, 1600 Bayside Drive Corona del Mar, CA 92625 Attn: Commodor (d) Consent Where Lessor's consent is required under this Lease, its consent for one transaction or event shall not be deemed to be a consent to any subsequent occurrence of the same or any other transaction or event. (e) Changes This Lease may be terminated and its term, covenants and conditions amended, revised or supplemented only by mutual written agreement of the parties. (f) Successors The terms, covenants and conditions of this Lease shall extend to and be binding upon and inure to the benefit of the heirs, successors, and assigns of the respective parties. (g) Joint and Several Obligation If more than one Lessee is a party to this Lease, the obligations of the Lessees shall be joint and several. 20 4 • • (h) Captions The captions of this Lease are not controlling and shall have no effect upon its construction or interpretation. (i) Severabilitv If any term, covenant or condition of this Lease is determined by a court of competent jurisdiction to be invalid, it shall be considered deleted and shall not invalidate any of the remaining terms, covenants and conditions. IN WITNESS WHEREOF, THE PARTIES HAVE EXECUTED THIS AGREEMENT EFFECTIVE AS OF THE DATE FIRST WRITTEN ABOVE. LESSOR LESSEE CITY OF j / -ORT BEACH BAHIA CORINTHIAN YACT CLUB Th as Cole Edwards, Mayor ATTEST: DCRAI U�'v City Clerk APP' +V D AS TO FORM: Robin L. Clauson, Assistant City Attorney af-j/ r%" airmendefor F:1cafda\AglBahia\050698.doc 21 r coastal business p grou , M V ' June 30, 2023 City of Newport Beach 100 Civic Center Drive Newport Beach, California 92660 RE: CPUC Letter of Notification for New T-Mobile Wireless Facility Administrative Wireless Communication Facilities Permit: PA2022-0163, Resolution No. ZA2023-041 Address: 1601 Bayside Drive, Corona Del Mar, CA 92625 T-Mobile Site: LA02868G/Bahia Corinthian Yacht Club Dear City of Newport Beach, Please find three (3) enclosed copies of the CPUC Letter of Notification and deliver to the following persons: City Manager: Grace Leung Community Development Manager: Seimone Jurjis City Clerk: Leilani Brown Please feel free to reach out to me with any questions regarding this matter at (949) 336-1550 or via email at dpichardo@coastalbusinessgroup.net. Regards, COASTAL BUSINESS GROUP Damien M. Pichardo 24310 Moulton Pkwy Suite 0 #1009 • Laguna Hills, CA 92637 • Phone: 949.336.1550 • Fax: 949.446.6465 www.coastalbusinessgroup.net DocuSign Envelope ID: DF8DFD78-A78D-4EFA-B906-D49B14CACB2B T-MOBILE LON ATTACHMENT A 1. Proiect Location Site Identification Number: LA02868G Site Name: Bahia Corinthian Yacht Club Site Address: 1601 Bayside Drive, Corona Del Mar, California 92625 County: Orange County Assessor's Parcel Number: 050-401-30 Latitude: 33.607006 Longitude:-117.885403 2. Proiect Description Number of Antemias to be installed: 6 antemlas Tower Design: Faux Clunuley Tower Appearance: Panel antennas will be mounted inside Faux Chimney Tower Height: 27' Size of Buildings: 27' 3. Business Addresses of Governmental Agencies ter` -ace- —e-ung — Cf City be- r 10- n Ch,ic Center Driv e-, N ewpo ft Rah r e 91660 Leilani Brown — City Clerk —100 Civic Center Drive, Newport Beach, CA 92660 Seimone Jurjis— Community Development Director —100 Civic Center Drive, Newport Beach, CA 92660 4. Land Use Approvals a. Date Land Use Approval Issued: 6-15-2023, takes effect 6-30-2023 b. Land Use Permit Number: PA2022-0163, Resolution No ZA2023-041 c. If Land Use Approval was not required: N/A