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HomeMy WebLinkAboutC-5567(C) - Newport Boulevard, 3300 - Assignment and Assumption of Ground Lease for the Former City Hall Property 2016ASSIGNMENT AND ASSUMPTION OF GROUND LEASE This ASSIGNMENT AND ASSUMPTION OF GROUND LEASE ("Assignment") is made as of May 3, 2016 by and between Olson Real Estate Group, Inc., a California corporation, doing business as R.D. Olson Development ("Assignor"), and Lido House, LLC, a California limited liability company ("Assignee"). 1. Assignor, pursuant to Section 11. 1.2 of the Lease (as defined below), permitting certain transfers of Assignor's interest in the Lease, for valuable consideration, grants, transfers and assigns to Assignee all of Assignor's right, title and interest, as lessee ("Lessee"), in and to that certain Ground Lease dated as of September 9, 2014 made and entered into with the City of Newport Beach, a California municipal corporation and charter city, as lessor ("Lessor"), and any further amendment or modification thereof ("Lease") with regard to the ground lease of that certain parcel of land situated in the City of Newport Beach, County of Orange, State of California, and more particularly described in the Lease ("Property"). 2. This Assignment constitutes a permitted Transfer, as defined in the Lease, under which Assignee assumes and agrees in writing to perforin and be subject to all of the Assignor's obligations as set forth in the Lease, which Assignment is approved as to form by Lessor's counsel, as evidenced by the respective parties' signatures hereto. 3. Assignor does also assign to Assignee all of its rights and interest in and to any deposits or credits, if any, paid by or due to Assignor under the Lease. 4. Assignor does also assign to Assignee all of its rights and interest in and to any and all easements appurtenant and entitlements, permits and governmental approvals related to the Property. 5. This Assignment shall be effective as of May 3 , 2016. 6. As of the effective date of this Assignment, Assignee assumes all of the duties and obligations of Assignor under the Lease accruing from and after the effective date of the Assignment, and shall indemnify and hold Assignor harmless in connection therewith. In addition to the indemnification provisions under the Lease, both Assignor and Assignee shall indemnify and hold Lessor harmless under the terms of this Assignment. 7. Pursuant to Section 11.1.3 of the Lease, this Assignment is being made prior to the completion of the Hotel and Improvements on the Premises and the opening of the Hotel for business to the general public. 8. Pursuant to Section 11.1.5 of the Lease, Lessor's consent to the transfer contemplated hereunder shall not be effective until the delivery of a fully executed copy of this Assignment to Lessor by Lessee or Assignee, which shall serve as the written notice by Lessee or Assignee. 9. Conflicts or Inconsistencies. In the event there are any conflicts or inconsistencies between this Assignment and the Lease and any attachments thereto, the terms of the Lease shall govern. 10. This Agreement may be executed in several counterparts, each of which shall be fully effective as an original and all of which together shall constitute one and the same instrument. [REMAINDER OF THE PAGE INTENTIONALLY LEFT BLANK] [SIGNATURES ON THE FOLLOWING PAGES] 2 IN WITNESS WHEREOF, intending this instrument under seal, this Assignment has been executed under seal by Assignor as of the day and year first above written. ASSIGNOR: OLSON REAL ESTATE GROUP, INC., a California corporation 444 -'Lk ff)� Robert D. Olson President Signature Page for Assignment Agreement IN WITNESS WHEREOF, intending this instrument under seal, this Assignment has been executed under seal by Assignee as of the day and year first above written. ASSIGNEE: LIDO HOUSE, LLC a California limited liability company By: Olson Real Estate Group, Inc., a California corporation, its Manager By: U Robert D. Olson President Signature Page for Assignment Agreement 11. PURSUANT to Lease Section 11.1.2, the City Attorney's Office has reviewed and approved the form of this Assignment. CITY OF NEWPORT BEACH a California municipal corporation and charter city APPROVED AS TO FORM: CITY ATT FSS OFFICE By: Aaron- . Harp City Attorney Signature Page for Assignment Agreement 5