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HomeMy WebLinkAbout85-69 - Marinapark Mobilehome Park Long Term LeasesRESOLUTION NO„ 85 -69 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AUTHORIZING THE MAYOR AND THE CITY CLERK TO EXECUTE NEW LONG TERM LEASES WITH EXISTING TENANTS OF THE MARINAPARK MOBILEHOME PARK WHEREAS, City is the owner, and is in possession and control, of a parcel of real property, consisting of tidelands and uplands, located northerly of Balboa Boulevard and between Fifteenth Street and Nineteenth Street in Newport Beach, commonly known as Marinapark and generally described on the plot plan attached as Exhibit "A" (hereinafter "plot plan "); WHEREAS, the property within Marinapark was under lease prior to the effective date of the Charter of the City of Newport Beach and, pursuant to the provisions of Section 1402 of the City Charter, the City Council is empowered to release the property; WHEREAS, pursuant to a lease dated March 24, 1976, (hereinafter 111976 Lease "), the City leased 58 trailer park spaces in Marinapark as shown on the plot plan, under a standard lease which would have expired on the 30th day of September, 1985, subject to the right of the Lessee to extend the term of the lease for a five (5) year period should the City Council determine, prior to that date, Marinapark was not required for any trust, or any public, purpose; WHEREAS, the existing tenants of Marinapark have asked the City Council to enter into a long -term lease with the understanding the City would have the right to convert Marinapark • to a public recreation area upon expiration of the lease; -1- WHEREAS, the Marinapark Ad Hoc Committee recommends the City Council authorize the Mayor and the City Clerk to execute the long -term lease (attached as Exhibit "A," hereinafter referred to as the "Lease "), which provides for increased rents and a waiver of relocation assistance to which tenants may otherwise be entitled upon conversion of Marinapark to a public recreation area; WHEREAS, the City Council finds that it is in the best interests of the City of Newport Beach to enter into the Lease because of the increased revenue derived by the City and the right to convert Marinapark into a public recreation area upon the expiration of the Lease, or shortly thereafter, without payment of relocation benefits or other forms of assistance to persons displaced due to the conversion; WHEREAS, the City Council finds and declares that the Lease operates to preserve an important and unique housing resource to be occupied by permanent residents and affordable to persons of low and moderate income. As such, the lease of space within Marinapark confers a substantial benefit upon the citizens of Newport Beach and is consistent with, and furthers the objectives of, the 1984 Housing Element of the General Plan of the City of Newport Beach; WHEREAS, the City Council finds and declares that the terms and conditions of the Lease are not inconsistent with the provisions of the public trust imposed upon those portions of Marinapark which constitute tidelands in that: (1) the preservation of a significant amount of rental housing affordable to persons of low and moderate income is a matter of general state -wide interest; (2) the revenue generated by that portion of Marinapark consisting of tidelands is utilized by the City to enhance public use of tidelands :in the immediate vicinity of Marinapark; and (3) the City has, through the lease, established -2- its right to convert the property to public recreational use upon expiration of the Lease without obligation to pay relocation benefits, or provide other forms of assistance, to displaced tenants; • WHEREAS, the City Council finds and declares that the terms and conditions of the Lease, as they relate to tidelands and uplands, do not constitute a violation of the gift clause of the Constitution of the State of California, in that the preservation of affordable housing stock is of significant public benefit and the revenues generated by the terms of the Lease are effectively and efficiently used to enhance the public recreational use of nearby tidelands; WHEREAS, the City Council finds and declares that the terms and conditions of the Lease comply, and are consistent, with the Charter of the City of Newport Beach including, without limitation, the provisions of Section 200 and 1402 of the Charter; WHEREAS, the City Council also finds and declares that the provisions of the Lease are consistent with the plans, policies, rules and ordinances of the City of Newport Beach and, more specifically, are consistent with the General Plan, which provides that the mobilehome park may be continued until phased out, and the Land Use Plan of the Local Coastal Program which specifies that it is the intent of the City to preserve the mobilehome park as a means of providing a variety of housing opportunities within the City; and WHEREAS, the terms and conditions of the Lease are in compliance, and consistent, with the! provisions of the Mobilehome Residency Law (Section 798, et seq. of the Civil Code) and the State Zoning and Planning Act (Sections 65863.7 and 65863.8 of the Government Code). -3- NOW, THEREFORE, BE IT RESOLVED that the Mayor and City Clerk are hereby authorized to execute a Lease with each of the existing Marinapark tenants, the form and content of the Lease to be substantially identical to Exhibit "A." 0 ADOPTED this 9th day c %!mil ✓_ �:�%!l�I City Clerk • -4- LEASE This Lease, entered into this day of , • 1985 by and between the CITY OF NEWPORT BEACH, a municipal corpo- ration and charter city (hereinafter "City") and (hereinafter "Lessee "), is made with reference to the following facts, the materiality and existence of which is stipulated and agreed by the parties: A. City is the owner, and is in possession and control, of a parcel of real property, consisting of tidelands and uplands, located northerly of Balboa Boulevard and between Fifteenth Street and Nineteenth Street in Newport Beach, commonly known as Marinapark and generally described on the plot plan attached as Exhibit "A" (hereinafter "plot plan "); B. The property within Marinapark was under lease prior to the effective date of the Charter of the City of Newport Beach and, pursuant to the provisions of Section 1402 of the City Charter, the City Council is empowered to authorize execution of this Agreement by the Mayor; C. Prior to the effective date of this lease, and pursu- ant to a lease dated March 24, 1976, (hereinafter 111976 Lease "), the City leased 58 trailer park spaces in Marinapark as shown on the plot plan, under a standard lease which would have expired on the 30th day of September, 1985, subject to the right of the Lessee to extend the term of the lease for a five (5) year period should the City Council determine, prior to that date, Marinapark was not required for any trust, or any public, purpose; D. The City Council presently intends to convert Marina - park to a public recreation area upon expiration of this lease; E. The City Council finds that it is in the best interests of the City of Newport Beach to enter into this Lease because Lessees have agreed that City has the right to convert Marinapark into a public recreation area upon the expiration of • this Lease, or shortly thereafter, without payment of relocation benefits or other forms of assistance to persons displaced due to the conversion; -1- F. The City-Council finds and declares that this Lease operates to preserve an important and unique housing resource to be occupied by permanent residents and affordable to persons of low and moderate income. As such, the lease of space within Marinapark confers a substantial benefit upon the citizens of Newport Beach and is consistent with, and furthers the objectives of, the 1984 Housing Element of the General Plan of the City of Newport Beach; G. The City Council finds and declares that the terms and conditions of this Lease are not inconsistent with the provi- sions of the public trust imposed upon those portions of Marina- park which constitute tidelands in that: (1) the preservation of a significant amount of rental housing affordable to persons of low and moderate income is a matter of general state -wide interest; (2) the revenue generated by that portion of Marinapark consisting of tidelands is utilized by the City to enhance public use of tidelands in the immediate vicinity of Marinapark; and (3) the City has, through this lease;, established its right to convert the property to public recreational use upon expiration of this Lease without obligation to pay relocation benefits, or provide other forms of assistance, to displaced tenants; H. The City Council finds and declares that the terms and conditions of this Lease, as they relate to tidelands and uplands, do not constitute a violation of the gift clause of the Constitution of the State of California, in that the preservation of affordable housing stock is of significant public benefit and the revenues generated by the terms of this Lease are effectively and efficiently used to enhance the public recreational use of nearby tidelands; I. The City Council finds and declares that the terms and conditions of this Lease comply, and are consistent, with the Charter of the City of Newport Beach including, without limitation, the provisions of Section 200 and 1402 of the Charter; J. The City Council also rinds and declares that the provisions of this Lease are consistent with the plans, policies, rules and ordinances of the City of Newport Beach and, more • specifically,' are consistent with the General Plan, which provides that the mobilehome park may be continued until phased out, and the Land Use Plan of the Local Coastal Program which specifies that it is the intent of the City to preserve the mobilehome park as a means of providing a variety, of housing opportunities within the City; and -2- K. The terms and conditions of this Lease are in compli- ance, and consistent, with the provisions of the Mobilehome Residency Law (Section 798, et seq. of the Civil Code) and the State Zoning and Planning Act (Sections 65863.7 and 65863.8 of the Government Code). NOW, THEREFORE, the undersigned parties do hereby mutually agree as follows: 1. DESCRIPTION OF PREMISES. The City leases, and Lessee accepts the lease of, the property described as space as shown on the plot plan, attached as Exhibit "A ", (hereinafter "Premises "). 2. TERM. The tenancy created by this Lease shall commence as of the date on which the Lease is signed by Lessee and shall expire on March 15, 2000, unless earlier terminated in accordance with the terms of this Lease. 3. USE OF PREMISES. A. The Premises shall be used only for residential purposes, and no business or comnerciial activity shall be conduc- ted on the Premises. No persons other than Lessee, a person in addition to Lessee if Lessee is living alone, and the short term guests (a guest who does not stay with Lessee for more than a total of 20 consecutive days or a total of 30 days in any calen- dar year) of Lessee, may reside or occupy the Premises without the prior written consent of the City. B. The City has found and determined this Lease is consistent with the provisions of the 1984 Housing Element and other relevant state and local laws, policies and plans primarily because it preserves a significant amount of housing affordable to persons of low and moderate income. The finding is based on the assumption that the premises shall serve as the primary resi- dence of Lessee, not as a second, or vacation, home. Lessee agrees that the primary residence requirement is fundamental to this lease, stipulates that the residency requirement will not constitute an undue burden or hardship on Lessee in light of the • time allowed for compliance, and Lessee agrees that, on or before October 1, 1990, the Premises shall be Lessee's primary residence unless this requirement is waived by the City Council due to hardship. Lessee shall provide satisfactory proof of residence to the City. -3- C. Lessee agrees to comply with the rules and regulations of Marinapark (Exhibit 111311) and further agrees these rules and regulations may be amended as provided in the Mobilehome Residency Law or other relevant statute. 4. FUNDAMENTAL CONSIDERATION AND ESSENTIAL TERMS: A. Introduction The City and Lessee! agree that the terms and conditions of this Lease grant, to both parties, substantial and important rights and advantages, economic and personal, that each would not otherwise be entitled to receive. These economic and personal rights and benefits Are the essence of, and constitute the fundamental consideration for, this Lease. The more impor- tant rights and benefits gained and given up by each party are specified in this paragraph and the parties agree that this Lease should be interpreted such that each party receives the benefits and advantages identified in this paragraph. B. Fundamental Interests of Lessee - Rights and Benefits Given Up by City. The overriding motivation for Lessee's approval of this Lease is the commitment by City to maintain the property as a mobilehome park until March 15, 2000, and the long -term nature of the tenancy created by this lease. These commitments of City operate to insure long -term occupancy, protect the finan- cial interest and investment of Lessee in the Premises, and significantly increase the value, and transferability, of that interest or investment. The most significant rights obtained by Lessee, and given up by City, are as follows: (1) Lessee obtains the long -term right to occupy the Premises while City commits to preserve the mobilehome park use until March 15, 2000 and approves a long -term tenancy instead of invoking its right to grant no more than a one year tenancy as provided by the Mobilehome Residency Law; (2) Lessee's right to occupy the Premises is subject to the payment of the moderate rent specified in this Lease and Lessee also obtains the advantage of limited rental increases in the future, while City gives up the right to charge higher rents initially and the right to impose future rental increases in excess of the cost -of- living index; and (3) The value and transferability .of Lessees interest is preserved by the long term nature of the tenancy -4- • created by this lease and limitations on the amount of rent a buyer or transferee of Lessee's interest could be charged, while City gives up the right to substantially increase rent for the Premises in the event of a transfer. C. Fundamental Interest of City - Rights and Benefits Given Up by Lessee. The fundamental reason for City to enter into this Lease is the right to convert Marinapark to a public recrea- tional use upon expiration of this Lease, or shortly thereafter, without obligation to pay relocation benefits, or provide other forms of relocation assistance. In consideration of the rights and benefits given up by City, and in addition to the obligation to pay rent and comply with the other terms and conditions of this Lease, Lessee stipulates and agrees as follows: (1) The terms and conditions of this Lease, specifically the commitment of City, to grant long -term tenancy rights and to preserve the current use of the Premises until March 15, 2000, constitute full and adequate mitigation of any adverse impact of the proposed conversion on Lessee and the extended term of the Lease gives Lessee sufficient time to secure adequate replacement space in another mobilehome park or other alternative housing; (2) The terms and conditions of the Lease, specifically the extended term of the Lease, is of far greater value to Lessee than any relocation benefits or other form of assistance could be granted to Lessee by City at or near the expiration of the Lease and the conversion of the Premises to public recreational use. The extended term of the Lease signifi- cantly increases the market value of Lessee's interest in the Premises and substantially improves the ability of Lessee to locate potential purchasers or transferees of Lessee's interest; (3) LESSEE HEREBY WAIVES, GIVES UP THE RIGHT TO RECEIVE, AND RELEASES CITY FROM ANY OBLIGATION TO PAY, RELOCATION BENEFITS, OR ANY OTHER FORM OF RELOCATION ASSISTANCE OR OTHER PAYMENT OR CONSIDERATION THAT ARISE OUT OF, OR ARE IN ANY WAY RELATED TO: (A) THIS LEASE OR ANIr FUTURE TENANCY; (B) THE ULTIMATE TERMINATION OF LESSEE'S TENANCY PURSUANT TO THIS LEASE OR THE TERMINATION OF EXPIRATION OF ANY SUBSEQUENT TENANCY HOWEVER CREATED; (C) THE CONVERSION OF THE PREMISES TO A PUBLIC RECREATION USE, (D) THE DISPLACEMENT OF LESSEE FROM HIS AND /Oft HER PRIMARY RESIDENCE; (E) ANY FEDERAL, STATE OR LOCAL LAW, PLAN, POLICY OR RULE WHICH RELATES TO SUCIH DISPLACEMENT, OR REQUIRES -5- THE MITIGATION OF THE IMPACTS CAUSED BY DISPLACEMENT. THIS RELEASE BY LESSEE, NOTWITHSTANDING SECTION 1542 OF THE CALIFORNIA CIVIL CODE, WHICH PROVIDES THAT: "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERI- ALLY AFFECTED THE SETTLEMENT WITH THE DEBTOR," RELEASES ALL CLAIMS OR LOSSES, WHETHER KNOWN, UNKNOWN, FORESEEN OR UNFORESEN, WHICH LESSEE MAY HAVE AGAINST CITY. LESSEE UNDER- STANDS AND ACKNOWLEDGES THE SIGNIFICANCE AND CONSEQUENCE OF THIS RELEASE AND OF THIS SPECIFIC WAIVER OF SECTION 1542 AND ASSUMES FULL RESPONSIBILIITY FOR ANY DAMAGES, LOSS OR CLAIM THAT LESSEE MAY INCUR AS A RESULT OF THE CONVERSION, TERMINATION, AND /OR DISPLACEMENT REFERRED TO ABOVE. LESSEE IS FREELY AND VOLUNTARILY EXECUTING THIS LEASE AND LESSEE, AND IN EXECUTING THIS RELEASE, HAS NOT RELIED UPON ANY INDUCEMENTS, PROMISES OR REPRESENTATIONS MADE BY CITY OR ITS OFFICERS OR EMPLOYEES, OTHER THAN THE COMMIT- MENTS AND COVENANTS CONTAINED WITHIN THIS LEASE. (4) Lessee agrees that City's right to convert the premises to a public recreation area upon expiration of this lease, is now believed to be in the best interests of the citizens of, and visitors to, the City of Newport Beach. (5) This Lease constitutes notice that City reserves the right to convert the Premises to public recreational use on or about March 16, 2000. (6) Upon expiration of the term of this Lease, Lessee shall, within sixty (60) days, remove any mobilehome or recreational vehicle, structure, improvement, personal property or equipment located upon the Premises. Upon the expiration of this sixty (60) day period, the City shall have the right to remove and dispose of any and all property improvement structures or equipment which remain on the Premises without prior notice or judicial action. (7) If, subsequent to the expiration of this Lease, Marinapark is still to be operated as a mobilehome park, the City shall be under no obligation to offer written rental agreements or leases other than as may then be required by the Mobilehome Residency Law, specifically the provisions of Section 798.18 of the Civil Code or such laws as may• be enacted subsequent to the effective date of this Lease. The Mobilehome -6- Residency Law currently obligates the City to offer a twelve (12) month lease or a lesser term if requested by Lessee. 5. RENT. • Lessee shall pay as rent, without deduction or offset, on the 1st day of October, 1985, and on the first day of each month thereafter during the term of this lease, the sum of $732.00, provided, however, in the event this lease is signed after the lst day of November, 1985, and prior to December 1, 1985, rent shall be $769.00, and provided further, that in the event this lease is signed after December 19 1985, and prior to January 1, 1986, the rent shall be $807.00 and in each case rent shall be subject to increase as specified in this paragraph. The monthly rental shall be subject to adjustment as of October 1, 1986 and as of October 1st of each year thereafter during the term of this Lease. In no case shall the adjusted rent be less than the current rent. The adjustment shall be equal to the increase in the Consumer Price Index for the twelve month period (commencing May 1 and ending April 30, hereinafter the "adjustment period ") prior to the date of adjustment. The rental adjustment shall be calculated by adding each monthly percentage increase during the adjustment period, subtracting any decreases and multiplying the total by the monthly rent in effect prior to the adjustment. The Consumer Price Index (All Urban Consumers -All Items) for the Los Angeles -Long Beach - Anaheim, California area as published and released by the Bureau of Statistics for the United States Department of Labor shall be the index utilized for calculating rental adjustments. If the Consumer Price Index, as now compiled and published, is superseded by another index, then the new index shall be used to calculate the increase in rent provided that an appropriate conversion from the old index to the new can feasibly be made. If such conversion cannot be made, or if no such index is published, then another index generally recognized as authori- tative shall be substituted by agreement. Rent for any fractional part of any month between the commencement date and the first date of the first full calendar month within the Term shall be prorated, and paid by Lessees to City along with the first full month of rent due hereunder. Lessee stipulates and agrees that this lease constitutes the sixty (60) days' written notice of rental increases required by the Mobilehome Residency Law and Lessee acknowledges that no additional written notice need be given by City; provided, -7- however, City may provide Lessee with sixty (60) days' written notice of the precise amount of any rental increase authorized by this paragraph and City and Lessee agree that such notice shall not constitute a waiver of City's right to rely upon the adequacy of the notice provisions in this paragraph. 6. RELEVANT STATUTES AND RULES. The Mobilehome Residency Law requires this Lease to contain, among other things, the rules and regulations of Marina - park and the language of the Mobilehome Residency Law. The rules and regulations of Marinapark are attached as Exhibit 1113," the provisions of the . Mobilehome Residency Law are attached as Exhibit "C," and both documents are incorporated into this Lease by reference. The Marinapark rules and regulations and the Mobilehome Residency Law may be amended or modified from time to time, and these amendments and modifications shall be deemed to be incorporated into the documents attached as Exhibits 1113" and "C" when effective. 7. LATE CHARGE. If the entire rent owed by Lessee is not received by City by the 10th day following its due date, then, without any requirement for notice to Lessee, Lessee shall pay to City a late charge of $35.00. The parties agree that such a late charge represents a fair and reasonable estimate of the costs City will incur by reason of any late payment of rent. An acceptance of a late charge by City shall not constitute a waiver of Lessee's default with respect to rent, nor prevent City from exercising any of the rights or remedies granted by this Lease. 8. SALE OR ASSIGNMENT. Lessee may sell the mobilehome located on the premises pursuant to the rights, and subject to the obligations, of Lessee under the Mobilehome Residency Law and any other appli- cable statutes. If the mobilehome that is the subject of the sale or transfer, is to remain in the park, or if Lessee proposes to assign Lessee's interest in this Lease to any person or persons who is (are) to reside on the premises, Lessee and /or the proposed transferee must do the following: A. Lessee must give notice of the sale or assignment to City prior to close of escrow; -8- B. The sale or assignment shall not be effective unless the City has given prior written approval, the transferee has executed the assignment of lease form provided by City, and the transferee has expressly agreed to be bound by the waivers and releases provided In the Lease. C. Lessee, In view of the requirement that the Premises shall constitute Lessee's primary residence, agrees not to sublease or otherwise transfer any partial interest in this Lease, except to the extent that the right to sublet or transfer Is specifically provided by law and, in no event to a person or persons not using the premises as a primary residence. D. City shall approve any such transfer, if the transferee has the financial ability to pay the rent and charges and otherwise comply with the terms and conditions of this Lease, provided, however, City may withhold approval if it determines that, based upon the transferee's prior tenancies, the transferee will not comply, with the rules or regulations of Marinapark (Exhibit "B "). E. The City, in the event of a sale of a mobilehome to a third party, and in order to upgrade the quality of the park, may require that a mobilehome be removed from the park, whent (1) It is .less than ten feet wide; (2) It is more than ".:twenty (20) years old, or more than twenty -five (25) years old If manufactured after September 15, 1971, and is twenty (20) feet wide or more, and the mobilehome does not comply with the health and safety standards provided In Section 18550, 18552 and 18605 of the Health do Safety Code and the regulations established thereunder; (3) the mobilehome Is more than seventeen (17) years old, or more than twenty -five (25) years old if manufactured after September 15, 1971, and is less than twenty (20) feet wide and the mobilehome does not comply with the construction safety standards under Sections 18850, 18852 and 18605 of the Health do Safety Code and the regulations establlished thereunder; or (4) it Is in a significantly run down condition or in disrepair, as determined by the general condition of the mobilehome and its acceptability of the health and safety of the occupants and the public exclusive of its age. • Pc.. Should ;Lessee$­- during '`the term of this 'Lease, elect - to` sell" or assign its :.interest In this Lease, City shall have the.rigW.of first refusal -to acquire the interest on such .terms and conditions'.as may be acceptable to Lessee, and on failure-of the'partles to agree on terms within ten (10) days after written notice thereof from Lessee, Lessee shall be free to -0- Y sell or assign Lessee's interest in this Lease, subject to the terms and conditions of this Lease. G. Notwithstanding any other provision in this Lease, Lessee shall have the right to assign its interest in this Lease to a spouse, son and /or daughter without any requirement that City be given the right of first refusal to acquire the interest and without payment of the transfer fee specified in paragraph 10, provided, however, the premises shall be used as the primary residence of the assignee and the assignee shall be bound by all provisions of this Lease, including, without limitation, the waiver of relocation assistance. 9. ITI'ILITIES. A. The City shall not provide electricity or tele- phone service. Lessee shall make arrangements directly with the utilities furnishing the services and promptly pay all charges; B. The City shall provide Lessee with water and gas service. The initial charge to Lessee for such service shall be based upon the expenses incurred by City for gas and water utili- zed within Marinapark, for all purposes, ( "total cost ") for the period commencing August 1, 1984 and ending July 31, 1985 (rating period). The initial monthly charge to Lessee shall be calcula- ted by dividing the "total cost" by twelve (monthly cost) and then dividing the monthly cost by the number of tenancies with Marinapark (total tenancies). Charges for gas and water service shall be increased or decreased on. the first day of October, 1986, and on the first day of October during each subsequent year of this Lease in accordance with increases or decreases in "total cost" or "total tenancies" during the preceding rating period (August 1st through July 31st). C. The charges for gas and water service shall be paid when rent is due, and is in audition to the obligation to pay rent. In the event Lessee fails to pay charges for water or gas service within ten days after the amount is due, Lessee shall pay to City a late charge of $35.00; D. In the event City provides both master meter and • submeter service of utilities to Lessee, the cost of the charges for each billing period shall be separately stated and. shall contain opening and closing readings of the meter. In such event, City shall post rates charged by the appropriate utility in a conspicuous place;. -10- E. City shall not be injury and Lessee shall not be reduction of rent, by reason of utility or service if the failure age, repairs, maintenance, or any • able control of City. 10. TRANSFER FEE. liable for any loss, damage or entitled to any abatement or City's failure to furnish any is caused by accident, break- other cause beyond the reason- Lessee requests that City perform certain services in connection with the sale of any mobilehome to remain within the Park, and /or the sale or assignment of Lessee's interest in this Lease. The services to be performed by City, at Lessee's request, include, but are not necessarily limited to, the prepar- ation of the documents by which the leasehold interest is assigned and the inspection of the property to be transferred. The City and Lessee agree that a reasonable fee for the perfor- mance of these services is the sum of $2,500.00. 11. MAINTENANCE OF LANDSCAPING AND IMPROVEMENTS. City agrees to maintain, in good working order and conditions, the grounds, common areas, common facilities, streets, City -owned buildings, and any other publicly -owned improvements on the Marinapark property. Lessee shall, at their cost and expense, maintain, in goad order and condition, any mobilehome, cabana, or other improvement located on the premises. Lessees also agree that all landscaping on the premises shall be limited to three (3) feet in height to preserve views and open space. The City may charge a reasonable fee for services relating to the maintenance! of the premises upon which the mobilehome is located in the event Lessee fails to maintain the property in accordance with the provisions of this Lease and the rules and regulations of Marinapark (Exhibit "B") after giving written notification to Lessee and Lessee's failure to comply within fourteen (14) days from the date of notice. The notice shall contain all information required by the Mobilehome Residency Law. 12. PHYSICAL IMPROVEMENTS AND SERVICES. • The physical improvements to be provided Lessee during the term of this Lease include the nonexclusive right to use all of the common areas and common facilities located within Marinapark, such as streets, nonrestricted parking areas, recrea- tional facilities and equipment, laundry facilities and other -11- facilities, equipment and conveniences located in the common areas and common facilities and designated for use by residents. The services to be provided by City during the term of this Agreement include the services to be provided by the Marinapark manager and other employees and officers of City, the utilities to be provided by City specified in Paragraph 9, and the maintenance of all common areas and common facilities in good working order and condition. 13. CHANGES IN MARINAPARK RULES AND REGULATIONS, PHYSICAL IMPROVEMENTS AND SERVICES. The City retains the right to amend or modify the Marinapark rules and regulations, the terms of this Lease, and the nature of the physical improvements for services to be provi- ded, after complying with the provisions of the Mobilehome Resi- dency Law and other applicable law. The right to amend the terms of this Lease, the Marinapark rules and regulations, and the physical improvements and services to be provided by City, include, without limitation, the right to reduce the size of, or eliminate, any physical improvement, common area, common facility, or equipment, provided, however, no changes shall be made to the provisions of this Lease,, specifying the term of the Lease or the rent to be charged unless those changes or amendments are permitted by other provisions of this Lease. 14. RIGHT OF ENTRY. A. Lessee, subject to the right of revocation as set forth in the Mobilehome Residency Law, hereby grants written consent to City to enter the premises and Lessee's mobilehome for the purpose of improving, maintaining, repairing or replacing gas, water and sewage systems owned and maintained by City. Any damage, loss or injury to Lessee's home, property of Lessee, or the premises which results from efforts of City to maintain, repair, improve or replace the gas, water or sewage systems, shall be the sole responsibility of Lessee, and City shall not be responsible for reimbursing any cost or expense incurred by Lessee as a result of such efforts, nor shall City be responsible • for repairing, replacing or otherwise restoring the mobilehome, the premises or any improvements thereon, to the state or condition immediately prior to the maintenance, replacement or -12- repair efforts. The City also reserves the right to enter the premises for other purposes as specified in the Mobilehome Residency Law. B. City is contemplating; widening the public walkway • located along the easterly boundary of Marinapark. In order to accomplish this widening it may be necessary to relocate existing improvements on the premises a distance of five feet (51) to the west. City hereby reserves the right to relocate mobilehome and other improvements on the premises a distance of five feet (51) to the west of its current location, the relocation to be at City expense, provided, however, Lessee shall bear any expense incurred by City in excess of the sum of $10,000.00. C J 15. HOLD HARMLESS. Lessees covenant that they will indemnify, defend and hold City, its officers, agents and employees harmless from any and all claims or demands of any name or nature whatsoever arising out of, or incident to, the use and occupancy of the Premises, and to indemnify City for any cost, liability, or expense caused by or arising out of any injury or death of persons or damage to property which may occur upon or about the leased premises or caused by or arising out of any activities or omission of Lessees, their agents, employees, licensees and /or invitees, including, without limitation, injury or death of Lessees, their agents, employees, licensees and invitees and damage to their property or Lessee's property, except for any damage or injury of any kind arising out of the negligence of City, its officers, agents, or employees. Lessees, as a material part of the consideration under this Lease, hereby waive all claims against City for any damage or loss from any cause arising at any time, including, but not limited to fire, theft, Acts of God, vandalism or any physi- cal damage while the coach remains in the mobilehome park, other than the negligence of City's agents, officers or employees. Lessees do hereby agree to indemnify and hold City, its officers, agents and employees harmless from and on account of any damage or injury to any person or equipment on the coach arising from -13- any cause or from the negligence of a Lessee, his or her family or guests. Since a substantial portion of the present value of Lessee's mobilehome or coach is attributable to the value of the premises and the and the proximity of the premises to lower Newport Bay, and not the value of the structural improvement, Lessee, in addition to the other conmitment specified in paragraph 4, agrees to indemnify and hold City, its officers agents, and employees harmless from any and all loss or injury of any nature whatsoever arising out of or attributable to such a change of use and the requirement that Lessee remove his home and other property from the Marinapark. 16. TERMINATION. A. Lessee may terminate this Lease without any further liability to City, upon sixty (60) days' written notice to City and upon condition that all persons occupying the premises terminate their tenancy within that period and remove the mobilehome or recreational vehicle and all other improvements, from the premises. B. The City may terminate this Lease for the reasons specified, and according to the procedures set forth, in the Mobilehome Residency Law. C. In addition to the rights specified in subpara- graph B, the City reserves the right to terminate this Lease in the event: (1) a court of competent jurisdiction determines that residential use of the property is inconsistent, or in conflict, with the provisions of the public trust imposed upon those por- tions in Marinapark that constitute state tideland, or that the residential use is inconsistent with any provision of the state constitution or state law; (2) there is a major failure in one or more of the public utilities furnished Lessee by City, and, in the opinion of City, the cost of repairing the system is exces- sive when viewed in light of the contemplated conversion to public recreation use at the expiration of this Lease. D. The waivers and releases relative to relocation • benefits or assistance shall operate to preclude recovery of same by Lessee in the event this Lease is terminated pursuant to the provisions of this paragraph. -14- 17. ATTORNEYS' FEES. Should either City or Lessees be required to employ counsel to enforce the terms, conditions and covenants of this Lease, the prevailing party shall recover all reasonable . attorneys' fees (and court fees if applicable) incurred therein whether or not court proceedings were commenced. 18. REMEDIES CUMULATIVE. The rights, powers, elections and remedies of the City contained in this Lease shall be construed as cumulative and no one of them shall be considered exclusive of the other or exclusive of any rights or remedies allowed by law, and the exercise of one or more rights, powers, elections or remedies shall not impair or be deemed a waiver of City's right to exer- cise any other. 19. NO WAIVER. No delay or omission of the City to exercise any right or power arising from any omission, neglect or default of the Lessees shall impair any such right or power or shall be construed as a waiver of any such omission, neglect or default on the part of the Lessees or any acquiescence therein. No waiver of any breach of any of the terms, cove- nants, agreements, restrictions or conditions of this lease shall be construed as a waiver of any succeeding breach of the same or of any of the terms, covenants, agreements, restrictions or conditions of this lease. 20. COMPLIANCE WITH LAWS. Lessees covenant and agree to 'comply with all rules, regulations, statutes, ordinances and laws of the State of California and the City of Newport Beach or any other governmental body or agency having lawful jurisdiction over the leased property; and Lessee further agrees to comply with all the Rules and Regulations of Marinapark. 21. MOBILEHOME RESIDENCY LAW /ZONING AND USE PERMIT • INFORMATION• A. Lessee acknowledges having received and read a copy of this Lease, the provisions of the Mobilehome Residency Law (Exhibit 11 _11) as presently constituted, and the Marinapark Rules and Regulations (Exhibit 11_11). -15- • B. Marinapark is currently zoned unclassified and there are no conditional use permits or other permits required to operate Marinapark as a mobilehome park. The City of Newport Beach owns the ground on which Marinapark is located except to the extent the property is subject to the public trust applicable to tidelands. 22. ENTIRE AGREEMENT. This Lease and the documents referred to herein constitute the entire agreement between City and Lessee and terminates and supersedes all prior and contemporaneous agreements, representations and understandings of the parties, whether written or oral, including, without limitation, the termination of any rights of either party under the 1976 Lease. 23. NOTICES. It is mutually agreed that any notice or notices provided for by this lease or by law, to be given or served by Lessees, may be given or served by mail, registered or certified, with postage prepaid, on the City of Newport Beach, addressed to the Mayor, City Manager, or City Clerk, 3300 Newport Boulevard, Newport Beach, California 92663, or at such other address as may be hereafter furnished to the Lessee in writing. If notice is intended to be served by City on Lessees, It may be served either: A. By delivering a copy to the Lessee personally; and B. If he be absent from the mobilehome, by leaving a copy with some person of suitable age and discretion who may be occupying the mobilehome; or C. If no one can be found, then by affixing a copy of the notice in a conspicuous place on the premises or mobilehome and also sending a copy through the mail addressed to the Lessee. Such service upon the City or Lessee complete at the expiration of seventy -two (72) • after the deposit in the United States mail demand or communication. -16 shall be deemed hours from and of such notice, IN WITNESS WHEREOF, the parties have caused this Lease to be executed the day and year first above written. CITY OF NEWPORT BEACH • a municipal corporation By APPROVED AS TO FORM: City Attorney • -17- LESSEE: M u M $732.00 1 - A B 2 - A B 3 - A B 4 - A B 5 - A B 6 - A B 7 - A B F 8 - A B 9 - A B 10 - A B 11 - A B 12 - A B $550.00 1 - C D 2 - C D 3 - C D 4 - C D 5 - C D 6 - C D 8 - C D 9 - C D 10 - C D 11 - C D 12 - C D $516.00 1 - E 2 - E 3 - E 4 - E 5 - E 6 - E 8 - E 9 - E 10 - E 11 - E 12 _ E • IQ 37'3" h � h o_ �. ♦ \ li �., \3 7 oll •r 9;. ^ ..Lai `�..� —'p'.R :.. .l'.'r'�� �'1- ..�8.�*+e':- vy.,,j�.Jd♦ ,� .�"l� CITY OF NEWPORT BEACH DRAWN G'EW DATE 4- -CoU PUBLIC WORKS DEPARTMENT APPROVED G /� -7� PUBLIC WORKS DIRECTOR V SE / 1Q41 R.E. NO. DRAWINO N0. 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