HomeMy WebLinkAboutC-7352-1 - Beacon Bay, Lot A (Harbor Island Road, 115) - Agreement to Lease 1987AGREEMENT TO LEASE
THIS AGREEMENT TO LEASE, made and entered into on
the qday of OG oiiR, 1987, by and between the CITY OF NEWPORT
BEACH, a chartered municipal corporation, hereinafter "City,"
and __ e. Y -M km S-videR 111,cK hereinafter
"Sublessee."
RECITALS
A. City holds t it le to and is the owner of certa in
harbor frontage and tidelands, together with certain uplands
abutting thereon known as Beacon Bay and more particularly
de scr ibed in Exh ib it "1 " at tached here to and made a par t hereo f
by this reference.
B. Carroll B. Beek, Barton Beek, Joseph AllAn Beek,
Jr., and Seymour Beek jointly hold a Master Lease to said proper-
ty dated January 9. 1950, which Master Lease expires on December
31, 1987.
C. The "Westerly Portion" of the Beacon Bay property
has been divided into individual lots and subleased for
resident ial purposes.
D. All of said subleases expire on the same date as
the Master Lease, to wit: December 311 1987.
E. City believes it to be in the best interest and
welfare of City: (1) that the portion of Beacon Bay which is
currently leased for residential purposes remain residential in
-1-
character; and (2) to enter into new agreements to lease with
the sublessees under the terms, conditions and for the considera-
tion as hereinafter set forth.
F. It is the judgment of City that the leasing of the
property hereinafter described is consistent with the trust pur-
poses imposed upon such portions of the leased land which may
constitute tidelands as authorized by Chapter 749 Statutes of
1978.
G. It is further the judgment of City that in entering
into this Agreement to Lease in the future, City is acting pur-
suant to its proprietary powers.
NOW, THEREFORE, IN CONSIDERATION OF THE FOREGOING
RECITALS AND THE MUTUAL COVENANTS set forth below, City and Sub-
lessee hereby agree as follows:
1. City hereby agrees to lease to Sublessee and Sub-
lessee hereby agrees to lease from City the real property
described in Exhibit 112" attached hereto and by this reference
made a part hereof (hereinafter the "Leased Land") pursuant to a
lease substantially in the form of Lease which is attached hereto
marked Exhibit "C" and by this reference made a part hereof, and
under the terms and conditions as set forth below.
2. The Base Rental under Paragraph 3 of the Lease,
Exhibit "C" attached hereto, shall be the sum described by
Alternate 4- , hereby selected by the Sublessee as described on
the Schedule of Fees attached hereto as Exhibit "A."
3. Should any Sublessee not execute this Agreement on
or pr for to the October 3 1, 1987, but execute th is Agreement
-2-
after October 31, 1987, and prior to December 31, 1987, the
renta)= sum to be used in paragraph 2 hereof and the Base Rental
under Paragraph 3 of the Lease, Exhib it "C" a ttached hereto,
shall be the total of the fair market rental value of the land as
established by the Appraisal Report prepared by George Hamilton
Jones, M.A.I., dated November 5, 1980, plus an amount equal to
the L.A. - Long Beach Consumer Price Index (C.P.I.) increase,
from July 1, 1981 to the date of execution, or 1% per month
increase from July 1, 1981, whichever is greater, plus an amount
equal to the increase in rental value change due to the reduced
lease advantage, as of the date of execution, as set forth in the
effective rental value change sheet attached hereto as Exhibit
"D", said total rental rate shall be referred to as Adjusted Base
Rental. The different Adjusted. Base Rental provided for in this
paragraph is imposed unilaterally by the City out of what is
deemed to be fair and equitable to those Sublessees who choose to
enter into this Agreement on its Effective Da to . Sa id d i fference
in Adjusted Base Rentals is in no manner to be considered a
penalty but moreover a procedure developed solely by City to pro-
vide the incentive to enter into this Agreement of Lease at the
earliest date possible. Commencing January 1, 1988 City is under
no obligation to enter into this Agreement or a Lease in the form
of Exhib it "C" attached hereto with any sublessee who has not
executed this Agreement and shall be free to deal with respect to
the lease of any unleased portions of Beacon Bay on any terms and
conditions it deems f it, e i ther w ith third part ies or pr for
sublessees.
4. Sublessee may sell, assign, exchange or convey his
interest in this Agreement without prior written consent of the
City, provided that upon any such transfer the provisions of
Section 4 of the Lease Exhibit "C" attached hereto, shall
Ma
determine the Base Rental to be paid by assignee to City, and
further provided that the assignee execute an acceptance of the
assignment and an agreement to be bound by all the terms of this
Agreement and to make the payments provided for hereunder which
Assignment and acceptance shall be delivered to and accepted by
City. Upon such assignment and acceptance, Sublessee shall be
released of any further obligation and liabilities under this
Agreement to Lease.
5.
The parties agree
to execute
the Lease, Exhibit "C"
hereto, dur
ing the
month of
December,
1987 and concurrently
therewith to
execute
and record
a short form
memorandum thereof.
6.
Time
and each
of the
terms, covenants and
conditions
hereof
are expressly
made
the essence of th is
Agreement.
If Sublessee shall fail to comply with any of the
terms, covenants or conditions of this Agreement, including
making the payments prov ided for here in at the t ime and in the
amount herein required, and shall fail to remedy such default
within sixty (60) days and thereafter diligently prosecute the
same to completion, or if a Sublessee shall abandon or vacate the
Leased Land, City may, at its option and without further demand,
terminate this Agreement. Upon service by City on Sublessee of
Notice of Termination of this Agreement to Lease, notice being
given in the same manner as provided in paragraph 19 of the Lease
appended hereto as Exhibit "C" this Agreement to Lease shall be
terminated as to Sublessee and City's obligation to enter into
the Lease appended hereto as Exhibit "C" is likewise terminated
and City is under no obligation whatsoever to enter into said
Lease with Sublessee.
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Should either City or Sublessee be required to
employ counsel to enforce the terms, conditions and covenants of
this Agreement to Lease, the prevailing party shall recover all
reasonable attorney's fees (and court costs if applicable)
incurred therein whether or not court proceedings were commenced.
7. Sublessee agrees that he will hold and save City,
its officers, agents and employees harmless from any and all
claims or demands of any kind or nature whatsoever arising out
of, or incident to, the use and occupancy of the Leased Land, and
to indemnify City for any cost, liability or expense caused by or
ar is ing out of any injury or death of persons or damage to
property which may occur upon or about the Leased Land or caused
by or arising out of any activities or omission of Sublessee, his
agents, employees, licensees, and/or invitees, including, without
limitation, injury or death of Sublessee, his agents, employees,
licensees and invitees and damage to his property or Sublessee's
property; except for any damage or injury of any kind arising
out of the negligence of City, its agents or employees.
8. Each and every covenant, condition and agreement
hereof, in accordance with the context, shall inure to the
benefit of City and apply to and bind Sublessee, their respective
heirs, legatees, devisees, executors, administrators, successors,
assigns, licensees, permittees, or any person who may come into
-5-
In
add it ion to
termina t ion of this Agreement to
Lease=
City may
recover from
Sublessee
all damages incurred by
City by
reason of
said breach,
including,
without limitation, any
payments due and
owing from Sublessee
to
City and any other costs
due and
owing from Sublessee
to City at
the date of termination
of this
Agreement
to Lease.
Should either City or Sublessee be required to
employ counsel to enforce the terms, conditions and covenants of
this Agreement to Lease, the prevailing party shall recover all
reasonable attorney's fees (and court costs if applicable)
incurred therein whether or not court proceedings were commenced.
7. Sublessee agrees that he will hold and save City,
its officers, agents and employees harmless from any and all
claims or demands of any kind or nature whatsoever arising out
of, or incident to, the use and occupancy of the Leased Land, and
to indemnify City for any cost, liability or expense caused by or
ar is ing out of any injury or death of persons or damage to
property which may occur upon or about the Leased Land or caused
by or arising out of any activities or omission of Sublessee, his
agents, employees, licensees, and/or invitees, including, without
limitation, injury or death of Sublessee, his agents, employees,
licensees and invitees and damage to his property or Sublessee's
property; except for any damage or injury of any kind arising
out of the negligence of City, its agents or employees.
8. Each and every covenant, condition and agreement
hereof, in accordance with the context, shall inure to the
benefit of City and apply to and bind Sublessee, their respective
heirs, legatees, devisees, executors, administrators, successors,
assigns, licensees, permittees, or any person who may come into
-5-
Possession or occupancy of the Leased Land, or any part thereof
in any manner whatsoever.
IN WITNESS WHEREOF, the parties have caused this Ao ree-
ment to Lease to be executed on the date first above written.
ATTEST:
City Cler
APPR ED AS TO FORM:
ity Attornbyl
-6-
Sub 1 sse
5 SNi�E2vtc.r. A.N)
Alternate 1
Lot
A
17
31
63
Alternate 2
Lot
A
17
31
63
Alternate 3
Lot
A
17
31
63
Alternate 4
Lot
A
17
31
63
SCHEDULE OF FEES
EXHIBIT A
Lump Sum Payment
$ 110,468
$ 64,442
$ 27,390
$ 60,370
Base Rental
$ 2,072.92
$ 1,354.17
$ 729.17
$ 1,354.17
and Base Rental
$
2,072.92
$
1,354.17
$
729.17
$
1,354.17
Constant Addit ional
and Payment
$ 1,104.50
$ 644 .17
$ 297. 50
$ 668.42
Lump Sum Payment
$ 110,468
$ 64,442
$ 27,390
$ 60,370
Constant Add it ionaI
Payment
$ 1,104.50
$ 644.17
$ 297.50
$ 668.42
and Base Rental
2.5% of City approved
appraisal divided by 12
2.5% of City
appraisal divided by 12
2.5% of City approved
appraisal divided by 12
2.5% of City approved
appraisal divided by 12
and Base Rental
2.5% of City approved
appra isa 1 divided by 12
2.5% of City approved
appra isa 1 divided by 12
2.5% of City approved
appraisal divided by 12
2.5% of City approved
appraisal divided by 12
a
AGREEMENT TO LEASE
THIS AGREEMENT TO LEASE, made and entered into on
the day of , 1987, by and between the CITY OF NE`SPORT
BEACH, a chartered municipal corporation, hereinafter "City, it
and hereinafter
"Sublessee."
RECITALS
A. City holds t it le to and is the owner of certa in
harbor frontage and t idelands, together with certain uplands
abutting thereon known as Beacon Bay and more particularly
described in Exhibit "I" attached hereto and made a part hereof
by this reference.
B. Carroll B. Beek, Barton Beek, Joseph ' A> I n Beek,
Jr., and Seymour Beek jointly hold a Master Lease to said proper-
ty dated January 9. 1950, which blaster Lease expires on December
31, 1987.
C. The "Westerly Portion" of the Beacon Bay property
has been divided into individual lots and subleased for
resident ial purposes.
D. All of said subleases expire on the same date as
the Master Lease, to wit: December 31, 1987.
E. City believes it to be in the best interest and
welfare of City: (1) that the portion of Beacon Bay which is
currently leased for residential purposes remain residential in
-1 -
v
character; and (2) to enter into new agreements to lease with
the ;sublessees under the terms, conditions and for the considera-
;:
tion as hereinafter set forth.
F. It is the judgment of City that the leasing of the
property hereinafter described is consistent with the trust pur-
poses imposed upon such portions of the leased land which may
constitute tidelands as authorized by Chapter 74, Statutes of
1978.
G. It is further the judgment of City that in entering
into this Agreement to Lease in the future, City is acting pur-
suant to its proprietary powers.
NOW, THEREFORE, IN CONSIDERATION OF THE` FOREGOING
RECITALS AND THE MUTUAL COVENANTS set forth below, City and Sub-
lessee hereby agree as follows:
1. City hereby agrees to lease to Sublessee and Sub-
lessee hereby agrees to lease from City the real property
described in Exhibit 112" attached hereto and by this reference
made a part hereof (hereinafter the "Leased Land") pursuant to a
lease substantially in the form of Lease which is attached hereto
marked Exhibit "C" and by this reference made a part hereof, and
under the terms and conditions as set forth below.
2. The Base Rental under Paragraph 3 of the Lease,
Exhibit "C" attached hereto, shall be the sum described by
Alternate , hereby selected by the Sublessee as described on
the Schedule of Fees attached hereto as Exhibit "A."
3. Should any Sublessee not execute this Agreement on
or pr for to the Oc tober 3 1, 1987, but execute this Agreement
-2-
after October 31, 1987, and prior to December 31, 1987) the
ren tai° sum to be used in paragraph 2 hereof and the Base Rental
under Paragraph 3 of the Lease, Exhibit "C" attached hereto,
shall be the total of the fair market rental value of the land as
established by the Appraisal Report prepared by George Hamilton
Jones, M.A.I., dated November 5, 1980, plus an amount equal to
the L.A. - Long Beach Consumer Price Index (C.P.I.) increase,
from July 1, 1981 to the date of execution, or 1% per month
increase from July 1, 1981, whichever is greater, plus an amount
equal to the increase in rental value change due to the reduced
lease advantage, as of the date of execution, as set forth in the
effective rental value change sheet attached hereto as Exhibit
"D", said total rental rate shall be referred to as Adjusted Base
Ren taI . The different Ad jus.ted. Ba se Renta 1 provided for in this
paragraph is imposed unilaterally by the City out of what is
deemed to be fair and equitable to those Sublessees who choose to
enter into this Agreement on its Effective Date. Said difference
in Adjusted Base Rentals is in no manner to be considered a
penalty but moreover a procedure developed solely by City to pro-
vide the incentive to enter into this Agreement of Lease at the
earliest date possible. Commencing January 1, 1988 City is under
no obligation to enter into this Agreement or a Lease in the form
of Exhibit "C" attached hereto with any sublessee who has not
executed this Agreement and shall be free to deal with respect to
the lease of any unleased portions of Beacon Bay on any terms and
conditions it deems fit, either with third parties or prior
sublessees.
4. Sublessee may sell, assign, exchange or convey his
interest in this Agreement without prior written consent of the
City, provided that upon any such transfer the provisions of
Sect ion 4 of the Lease Exhibit "C" attached hereto, sisal l
ORB
V
determine the Base Rental to be paid by assignee to City, and
further;- provided that the assignee execute an acceptance of the
assignment and an agreement to be bound by all the terms of this
Agreement and to make the payments provided for hereunder which
Assignment and acceptance shall be delivered to and accepted by
City. Upon such assignment and acceptance, Sublessee shall be
released of any further obligation and liabilities under this
Agreement to Lease.
S.
The parties
agree
to execute
the Lease, Exhibit "C"
hereto, dur
ing the
month of
December,
1987 and concurrent ly
therewith to
execute
and
record
a short form
memorandum thereof.
6.
Time
and
each .
of the :
terms, covenants and
conditions
hereof
are
expressly
made
the essence of th is
Agreement.
If Sublessee shall fail to comply with any of the
terms, covenants or conditions of this Agreement, including
making the payment s prov ided for here in a t the t ime and in the
amount herein required, and shall fa i 1 to remedy such default
within sixty (60) days and thereafter diligently prosecute the
same to completion, or if a Sublessee shall abandon or vacate the
Leased Land, City may, at its option and without further demand,
terminate this Agreement. Upon service by City on Sublessee of
Notice of Termination of this Agreement to Lease, notice being
given in the same manner as provided in paragraph 19 of the Lease
appended hereto as Exhibit "C" this Agreement to Lease shall be
terminated as to Sublessee and City's obligation to enter in to
the Lease appended hereto as Exhibit "C" is likewise terminated
and City is under no obligation whatsoever to enter into said
Lease with Sublessee.
-4-
Should either City or Sublessee be required to
employ counsel to enforce the terms, conditions and covenants of
this Agreement to Lease, the prevailing party shall recover all
reasonable attorney's fees (and court costs if applicable)
incurred therein whether or not court proceedings were comnenced.
7. Sublessee agrees _that he will hold and, save City,
its officers, agents and employees harmless from any and all
claims or demands of any kind or nature whatsoever arising out
of, or incident to, the use and occupancy of the Leased Land, and
to indemnify City for any cost, liability or expense caused by or
ar is ing out of any in jury or death of persons or damage to
property which may occur upon or about the Leased Land or caused
by or arising out of any activities or omission of Sublessee, his
agents, employees, licensees, and/or invitees, including, without
limitation, injury or death of Sublessee, his agents, employees,
licensees and invitees and damage to his property or Sublessee's
property; except for any damage or injury of any kind arising
out of the negligence of City, its agents or employees.
8. Each and every covenant, cond it ion and aU reement
hereof, in accordance with the context, shall inure to the
benefit of City and apply to and bind Sublessee, their respective
heirs, legatees, devisees, executors, administrators, successors,
assigns, licensees, permittees, or any person who may come into
-5-
In
add it ion to
termination of th is Agreement to
Leasee=
City may
recover from
Sublessee
all damages incurred by
City by
reason of
said breach,
including,
without limitation, any
payments
due and
owing from Sublessee
to
City and any other costs
due and
owing from Sublessee
to City at
the date of termination
of this
Agreement
to Lease.
Should either City or Sublessee be required to
employ counsel to enforce the terms, conditions and covenants of
this Agreement to Lease, the prevailing party shall recover all
reasonable attorney's fees (and court costs if applicable)
incurred therein whether or not court proceedings were comnenced.
7. Sublessee agrees _that he will hold and, save City,
its officers, agents and employees harmless from any and all
claims or demands of any kind or nature whatsoever arising out
of, or incident to, the use and occupancy of the Leased Land, and
to indemnify City for any cost, liability or expense caused by or
ar is ing out of any in jury or death of persons or damage to
property which may occur upon or about the Leased Land or caused
by or arising out of any activities or omission of Sublessee, his
agents, employees, licensees, and/or invitees, including, without
limitation, injury or death of Sublessee, his agents, employees,
licensees and invitees and damage to his property or Sublessee's
property; except for any damage or injury of any kind arising
out of the negligence of City, its agents or employees.
8. Each and every covenant, cond it ion and aU reement
hereof, in accordance with the context, shall inure to the
benefit of City and apply to and bind Sublessee, their respective
heirs, legatees, devisees, executors, administrators, successors,
assigns, licensees, permittees, or any person who may come into
-5-
Possession or occupancy of the Leased Land, or any part thereof
in any manner whatsoever.
IN WITNESS
WHEREOF,
the parties
have
caused
this Agree-
ment to Lease to be
executed
on the date
first
above
written.
ATTEST:
City Clerk
APPROVED AS TO FORM:
City Attorney
CITY OF NEWPORT BEACH
By
Mayor
-6-
Sublessee
Alternate 1
Lo t
A
17
31
63
Alternate 2
Lot
A
17
31
63
Alternate 3
Lot
A
17
31
63
Alternate 4
Lot
A
17
31
63
SCHEDULE OF FEES
EXHIBIT A
Lump Sum Payment
$ 110,468
$ 64,442
$ 27,390
$ 60,370
Base Rental
$ 2,072.92
$ 1,354.17
$ 729.17
$ 1,354.17
and Base Rental
$
2,072.92
$
1,354.17
$
729.17
$
1,354.17
Constant
Addit ional
and Payment
$
1,104.50
$
644.17
$
297.50
$
668.42
Lump Sum Payment
$ 110,468
$ 64,442
$ 27,390
$ 60,370
Constant Add it ionaI
Payment.
$ 1,104.50
$ 644.17
$ 29 7.50
$ 668.42
and Base Rental
2.5% of City approved
appraisal divided by 12
2.5% of City
appraisal divided by 12
2.5% of City approved
appraisal divided by 12
2.5% of City approved
appraisal divided by 12
and Base Rental
2.5% of City approved
appraisal divided by 12
2.5% of City approved
appraisal divided by 12
2.590 of Ci ty approved
appraisal divided by 12
2.5% of City approved
appra isa 1 divided by 12