HomeMy WebLinkAboutPA2022-0207_20220921_Leasing AgreementBayside Village Mobile Home Park
300 East Coast Highway
Newport Beach, CA 92660
MANUFACTURED HOME STORAGE AGREEMENT
This Manufactured Home Storage Agreement (hereinafter referred to as the "Agreement")
is made and entered into this 2nd day of March, 2022 ("Effective Date") by and between Bayside
MHP LLC, a California limited liability company dba Bayside Village Mobilehome Park
Community (hereinafter "Community") and NuTrends Homes, LLC, DBA PL Whittenton, Inc
(hereinafter "Dealer"), with regard to Space 207 Tremont ("Space") within the Community,
located at 300 East Coast Highway, Newport Beach, CA 92660.
WHEREAS, Dealer will, at Dealer's expense, acquire a new manufactured home
("Home") for the purpose of sale by Dealer to a third party approved by the Community for
tenancy in the Community;
WHEREAS, Dealer desires to store the Home, at Dealer's expense, in place at the Space
within the Community, but agrees not to occupy, and agrees not to allow anyone else to occupy,
the Home unless and until it is sold to a buyer approved by the Community; and
WHEREAS, Community has agreed to permit Dealer to store the Home at the Space if
Dealer pays to the Community storage fees and utility charges and otherwise complies with this
Agreement, as provided herein;
THEREFORE, both Community and Dealer agree to the following terms and conditions:
1. PLACEMENT OF NEW MANUFACTURED HOME.
Dealer shall place the Home on the Space for purposes of resale. The Home shall be
installed on the Space by a properly licensed and fully insured contractor, approved by Community
("Contractor"), in compliance with all applicable codes and regulations, and the requirements of
Community, including the Community Standards ("Rules and Regulations"). Dealer and
Contractor shall comply with the insurance requirements set forth on Exhibit B, attached and
incorporated by reference. Dealer must obtain the written approval of the Community of the Home
prior to ordering the Home. Community shall also pre-approve the placement of the Home on the
Space.
2. TERM AND TERMINATION.
The term of this Agreement shall commence on the Effective Date and shall end on the
earlier of the removal of the Home from the Community, or the sale or transfer of the Home to a
third-party purchaser approved for tenancy by the Community, that has executed all necessary
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residency documents as required by the Community m its sole discretion ("Approved
Purchaser").
Notwithstanding the foregoing, Community may terminate this Agreement if Dealer is in
default of any term or condition of this Agreement, including any representations and warranties
provided herein, and fails to cure such default within ten (10) days of receipt of written notice of
default from Community.
3. STORAGE FEE AND UTILITIES.
a. Commencing on the Effective Date, Dealer agrees to pay to the Community the
sum of $2,488.03 per month, as and for a storage fee ("Storage Fee(s)"), payable
monthly in advance on the first day of each month of the term hereof. The Storage
Fee may be increased at any time upon 30 days written notice. Dealer shall also be
responsible for arranging hook-up of gas and electric utilities and for the payment
of any associated charges. The Storage Fees include the cost of water and sewer
and trash service.
b. If payment of the storage fee is not made by the fifth of each month, a late charge
of Fifty Dollars ($50) shall be charged to cover the Community's cost of additional
accounting/management expense. Additionally, a handling charge of Fifty Dollars
($50) shall be charged for any and all checks returned by a bank due to insufficient
funds or for any other reason. Any payment not received when due will accrue
interest on the outstanding amount at a rate of one percent (I%) per month or the
highest rate allowed by applicable law, whichever is lower. Dealer will pay to
Community all expenses incurred by Community in collecting or otherwise
exercising its rights to payments under this Agreement, including, but not limited
to, reasonable attorneys' fees and the fees of any collection agency retained by
Community.
4. INSTALLATION OF HOME, MAINTENANCE OF HOME AND SPACE, AND
SALE OF HOME.
Dealer shall comply with the requirements and ensure that the installation of the Home is
in accordance with the obligations and installation timeline set forth on Exhibit A, attached and
incorporated by reference. Dealer also agrees to ensure that the installation of the Home complies
with the State of California, Department of Housing and Community Development ("HCD")
regulations, and Community requirements.
Dealer shall remove any construction waste from the Space, and maintain the Home and
Space in good condition, in compliance with the Community's Rules and Regulations and
applicable law. In the event Dealer fails to maintain the Space as provided in the Rules and
Regulations, the management of the Community may perform any required maintenance and
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charge Dealer a reasonable fee for said maintenance.
Dealer shall engage a real estate agent licensed by the HCD for the sale of the Home to an
Approved Purchaser.
5. FORM OF PAYMENT.
All payments made by Dealer shall be made payable to Bayside MHP LLC. The payments
shall be made directly to the office of the Community manager.
6. NO RIGHTS OF OCCUPANCY.
The Community and Dealer agree that Dealer has no rights of tenancy in the Community.
Unless and until there is a sale of the Home to an Approved Purchaser, the Home is not and will
not be occupied by any person at any time. In addition, Dealer agrees that the Home may not be
subleased, and this Agreement may not be assigned by Dealer.
7. LIEN ON HOME AND PAYMENT FROM ESCROW.
The parties agree that the Community shall have a lien ("Lien") against the Home for the
value of all accrued Storage Fees and other charges attributable to Dealer or to the Home, if any.
In addition, the parties agree that any accrued Storage Fees and accrued utilities charges, if any,
shall be paid out of the escrow of the sale of the Home to an Approved Purchaser.
The parties agree that the Community's Lien shall be enforceable as a "warehouseman's
lien" in accordance with Section 7209 of the California Commercial Code against the Home for
the costs of dismantling and moving, if appropriate, as well as storage fees and accrued utility
charges, that shall be superior to all other liens, except the lien provided for in Section 18116.1 of
the California Health and Safety Code, and may enforce the Lien pursuant to Section 7210 of the
California Commercial Code upon five (5) day's written notice to Dealer to cure.
8. INDEMNIFICATION.
The Community shall not be liable for any loss, damage or injury of any kind whatsoever
to the person or property of Dealer or to any agents, contractors, employees, guests, invitees,
permitees or licensees of Dealer (Dealer's "Guests") or to any other person whomsoever, caused
by the use of the Community by Dealer or Dealer's Guests, including, but not limited to, any
damage caused to or by the Home or arising from any accident in the Community resulting from
the installation, storage, maintenance or sale of the Home, including without limitation any fire or
other casualty thereon, theft, vandalism, or any physical damage. As a material part of the
consideration of Community entering into this Agreement, Dealer hereby waives and releases
Community from any and all past, present, and future claims and demands that Dealer has or may
have against the Community and hereby agrees to indemnify and hold the Community free and
harmless from liability for all claims and demands for any such loss, damage or injury, together
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with all costs and expenses arising therefrom or in connection therewith, other than to the extent
such claim, demand, loss, damage or injury arises out of the gross negligence or intentional
misconduct of the Community. Dealer further agrees to maintain the insurance required by Exhibit
B. Prior to Community's execution of this Agreement, and within three (3) days' of notice, Dealer
will provide Community with proof of insurance as required in Exhibit B.
9. W AIYER OF TENANCY RIGHTS.
In consideration of the covenants described herein, Dealer agrees that by executing this
Agreement, Dealer is waiving any and all rights of tenancy that Dealer may have or might possess
at the Community. Without limitation, Dealer acknowledges that the provisions of the
Mobilehome Residency Law, California Civil Code Section 798 et seq., shall not apply to this
Agreement.
10. REPRESENTATIONS AND WARRANTIES
a. Representations and Warranties of Dealer. Dealer represents and warrants to
Community that: (i) it has all necessary power and authority to enter into this
Agreement and to perform all of its obligations hereunder; (ii) it possesses and will
maintain any and all licenses, permits and/or authorizations required for its
operations in connection with the purchase, transportation, installation and sale of
the Home and the use of the Space; and (iii) it understands that Community does
not provide any security for the Home or the Space and Dealer accepts the risks of
installing and locating the Home on the Space in the Community.
b. Representations and Warranties of Community. Community represents and
warrants to Dealer that it has all necessary power and authority to enter into this
Agreement and to perform all of its obligations hereunder.
11. INVALIDITY OF PROVISIONS.
If any term or provision of this Agreement, or the application thereof to any person or
circumstances shall, to any extent, be invalid or unenforceable, the remainder of this Agreement
or the application of such term or provision to persons or circumstances other than those as to
which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision
of this Agreement shall be valid and be enforced to the fullest extent provided by law.
12. GENERAL PROVISIONS.
a. All notices, under this Agreement ( other than routine operational communications)
shall be in writing and will be deemed duly given (i) when delivered personally, or
delivered via email, (ii) five (5) days from the date of delivery or refusal, if sent by
certified mail, postage prepaid and return receipt requested, or (iii) one ( 1) business
day after being given to an overnight courier with a reliable system for tracking
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delivery.
b. This Agreement and each and all its terms, provisions, covenants, conditions,
rights, and obligations shall be binding upon and inure to the benefit of the parties
hereto and their respective permitted successors and assigns.
c. Time is of the essence of this Agreement and the waiver of any breach or default in
one instance shall not be deemed a waiver of the same or any other breach or default
in any other instance.
d. This Agreement may be executed in any number of counterparts, each of which
shall be deemed an original and all of which together shall constitute one and the
same instrument. Facsimile and electronic signatures, such as PDF, will be deemed
original signatures for purposes of this Agreement.
e. Each of the parties shall execute and deliver or cause to be executed and delivered
such other instruments and documents and take such other action as may be
necessary or proper and lawful to fully perform this Agreement.
f. This instrument contains the entire Agreement of the parties with respect to the
subject matter thereof and shall be construed and enforced in accordance with the
laws of the State of California.
g. Except as expressly provided in this Agreement, any controversy or dispute arising
out of this Agreement, the interpretation of any of the provisions hereof, or the
action or inaction of any person or entity bound by our entitled to any benefits under
this Agreement shall be submitted to arbitration pursuant to the commercial
arbitration rules of JAMS, Judicate West or ADR Services, Inc. ( collectively
"Approved Service"), or any other recognized arbitration service selected by the
party instituting such action provided if any other party objects to the selection of
a service other than an Approved Service, the arbitration shall be moved to an
Approved Service selected by the party objecting. Any award or decision obtained
from any such arbitration proceeding shall be final and binding on the parties, and
judgment upon any award thus obtained may be entered in any court having
jurisdiction thereof. No action at law or in equity based upon any claim arising out
of or related to this Agreement shall be instituted in any court by any party except:
(i) an action to compel arbitration pursuant hereto, (ii) an action for injunctive relief,
or (iii) an action to enforce an award obtained in an arbitration proceeding in
accordance with the terms of this section. The arbitration shall take place in the
County of Orange.
h. In the event of any dispute among the parties, whether based on contract, tort or
other cause of action, in any way related to this Agreement, the non-prevailing party
shall pay to the prevailing party all its reasonable attorneys' fees and costs and
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expenses of any type, without restriction by statute, court rule or otherwise, incurred
by the prevailing party in connection with any action or proceeding (including
arbitration proceedings, any appeals and the enforcement of any judgment or
award), whether or not the dispute is litigated or prosecuted to final judgment. The
"prevailing" party shall be determined based upon an assessment of which party's
major arguments or positions taken in the action or proceeding could fairly be said
to have prevailed (whether by compromise, settlement, abandonment by the other
party of its claim or defense, final decision, after any appeals, or otherwise) over
the other party's major arguments or positions.
i. This Agreement may not be changed orally but only by a writing signed by the
party against whom any waiver, change, modification, extension, or discharge is
sought to be enforced.
J. In the event of a breach of this Agreement (including without limitation of the
Community Rules and Regulations) by Dealer that is not cured withing ten (10)
days of notice, in addition to any other remedy Community may have, the parties
agree that the Community may immediately terminate Dealer's storage rights and
the Community may remove the Home from the Community, the cost of which will
be the sole responsibility of Dealer. The parties further agree that injunctive relief
may be sought to remedy such a breach of this Agreement.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective as of
the Effective Date set forth above.
List of Dealer's License(s)
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Dated: ____,,3~/c...c.J;q..j-"")-J./.r __
NuTrends Homes, LLC, DBA PL Whittenton, Inc.
Bayside MHP LLC
dba Bayside Village Mobileho
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General Manager
Address: 300 East Coast Highway
Newport Beach, CA 92660
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Exhibit A
• Dealer must submit the Home plans to Community within eight weeks of the Effective
Date of this Agreement, for review and approval or disapproval.
• Dealer must order the Home within one week of Community written approval of the Home
plans and provide Community with a copy of the confirmed order and estimated delivery
date.
• Dealer must obtain Certificate of Occupancy ("COO") from The State of California,
Housing and Community Development (HCD) no later than three months following the
delivery/installation of the Home on the Space.
• Dealer must submit to Community a landscape plan for the Space for written approval by
Community in its sole discretion.
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Exhibit B
Insurance Requirements of Dealer
1. Dealer must provide Certificates of Insurance for the insurance described in this Exhibit.
Similarly, any contractor, sub-contractor, or third party vendor (such as a transport
company) who comes on site must provide Certificates of Insurance for the insurance
described in this Exhibit. The coverage provided shall be primary over any other
collectible insurance in place by the Community or its affiliates.
2. Certificates oflnsurance must evidence the following:
a. Comprehensive General Liability Insurance: including coverage for
premises/operation, products/completed operations, personal injury or death,
blanket contractual liability, independent contractors, broad form property
damage. The insurer should delete any exclusion pertaining to explosion,
collapse and underground hazards. The limit of such coverage shall be in an
amount not less than $2,000,000 combined single limit per occurrence for
bodily injury and property damage. The maximum deductible is to be $10,000.
The $2,000,000 coverage requirement can be met with a primary liability and
an umbrella policy combined. The policy must be on an "Occurrence" basis.
b. Workers' Compensation Insurance according to statutory limits. Employer's
liability: $1,000,000 each accident. Independent contractors with no
employees do not need to provide evidence of workers' compensation
insurance. The policy should contain a ''waiver of subrogation" in favor of
Bayside MHP LLC, De Anza Bayside Village, LLC and Terra Vista
Management, Inc.
c. Automobile Liability: owned, non-owned, and hired. Limits $1,000,000
combined single limit for bodily injury, death and property damage.
d. Causes of Loss-Special Form Property Insurance on Dealer's insurable property
(including the Home) in an amount to cover 100 percent (100%) of the
replacement cost.
All Certificates of Insurance (other than Workers Compensation) must include as additional
insureds: (a) Bayside MHP LLC; (b )De Anza Bayside Village, LLC; (c) Terra Vista Management,
Inc., (d) Gelfand Properties Bayside, LLC and a policy endorsement indicating Additional Insured-
Designated Person or Organization Status must be obtained and provided.
3. Insurance companies must carry an A.M. Best rating of A-6 or better and be qualified in
California.
4. Certificates/endorsement must provide 30 days pnor written notice of cancellation,
material alteration, or non-renewal.
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