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HomeMy WebLinkAboutC-1931 - Lease 5th & Marguerite, Corona del Mar - City-owned propertyTO: FINANCE DIRECTOR FROM: City Clerk SUBJECT: Contract No. C -1931 A CITY OF NEWPORT BEACH CALIFORNIA DATE Jung 22, 1977 City Halt 3300 W, Newport Blvd. Area Code 714 Description of Contract Carden School Lemm /Sth 6 ljarrtaerite, CdM Authorized by Resolution No. 9092 , adopted on 5 -23-77 Effective date of Contract 6-7 -77 Contract with John D. 6 Judith A. Wilson Address 2017 Miroar Dr., Balboa, CA 92661 Amount of Contract $1,563,43 /u mth t_ City Clerc June 21, 1977 Copy of Carden School Lease dated June 7, 1977 given to the City Manager to be given to John Wilson this date. D. George ��. _ �� r ri_, r, �: ._. _. _ �� r �� ._ "� dl's.. ....�...�:...v, ...ti. -ffs:�"sa. a:3G��... ' °= �.. >s _,y � ..., LJ _L_E A_S_E_ (5th & Marguerite Site) E The Carden School of Corona del Mar THIS LEASE is made and entered into this day of 1977, by and between the CITY OF NEWPORT BEACH, a municipal corporation, hereinafter referred to as "City" and JOHN D. WILSON and JUDITH A. WILSON, husband and wife, doing business as The Carden School of Corona del Mar, hereinafter referred to as "Lessee ". W I T N E S S E T H: A. City holds title to that certain real property consisting of two classroom buildings and one administrative building in the City of Newport Beach, County of Orange, State of California, located at the northeast corner of the inter- section of 5th Avenue and Marguerite Avenue and which is described as: A portion of Block 96 of the Irvine Subdivision, recorded in Book 1, Page 88, Official Records of Orange County, more particularly described as follows: Beginning at a point on the northeasterly right -of -way line of Fifth Avenue, which point is at the beginning of the right -of- way line radius at the northeasterly intersection of Fifth Avenue and Marguerite Avenue; thence southeasterly along said northeasterly right -of -way line a distance of 514.63 feet; thence northeasterly, along a line lying S 40 °03'56" W a distance of 313.75 feet; thence northwesterly, along a line lying S 59 °25'16" E to the intersection of said line with the southeasterly right -of- way line of Marguerite Avenue; thence south- westerly along said right -of -way line and following the right -of -way line radius at the northeasterly intersection of Fifth Avenue and Marguerite Avenue back to the point of beginning. • • B. City proposes to lease to Lessee portions of the premises described hereinabove and the structures located thereon, and Lessee proposes to lease from City portions of the real property and buildings, consistent with the terms, covenants and conditions contained hereinafter. C. City desires to retain controls over the use of said property, which controls are expressed by the terms, covenants and conditions contained hereinafter to protect the public interest in and to said property. NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth, it is agreed as follows: 1. Leased Premises. City hereby leases to and Lessee does hereby lease from City that portion of the property and structures located thereon as generally described as the south wing and the most westerly building (Administration Building) and as depicted on the attached map marked Exhibit "A" which is made a part herein by this reference. 2. Term. The term of this lease shall commence August 1, 1977, and terminate June 30, 1978, unless sooner terminated in the manner hereinafter provided. 3. Rental. Lessee shall pay to City and City shall accept as rental for said demised premises the sum of One Thousand Five Hundred and Sixty -Three Dollars and Forty -Three Cents ($1,563.43) per month during each month or portion thereof this lease remains in effect, payable on the first day of each month. Said amount is based on 5,126 square feet of building area at 30.5 cents per square foot. 4. Use. Lessee shall use its portion of the demised premises for the purpose of operating a private day school. 5. Cooperative Use. Senior Citizens shall have: -2- 0 (a) The exclusive use of the North Wing; (b) Right to construct and use parking area accommodating approximately thirty (30) cars; area; (c) Right to use and maintain a garden plot (d) Permission to construct an auditorium and cafeteria building; and (e) Right to erect a temporary activity building and necessary ramps, hand rails, and construction of a small kitchen area. Cooperative uses as herein described are depicted on Exhibit "A ". 6. Right of Entry. Effective June 18, 1977, Lessee shall grant to City a right of entry to go on said leased premises for the purpose of commencing construction of the Cooperative Use Plan. 7. Alternate Business Activities. Lessee shall not grant any concession, license, permit or privilege to conduct any business or other operation for profit or alter the use or type of service on the demised premises without the prior written approval of the City Manager. 8. Supervisory Control. City retains the power to exercise such supervisory control over the use and operation of the demised premises by Lessee., with the right to enforce such rules, regulations and orders as may be deemed necessary by City in order to obtain compliance by Lessee with the terms and conditions contained herein. Lessee agrees to comply with any such rules, regulations and orders. Any breach by Lessee of the terms and conditions of this lease shall constitute grounds for termination. 9. Utilities and Maintenance. The payment for water, gas and electricity shall be apportioned between Lessee and City with Lessee paying sixty percent (60 %) of the total utility -3- charges and the City paying forty percent (40%) of the total utility charges. Said percentages are based on Lessee leasing 5,125 square feet and Senior Citizens using 3,696 square feet. Lessee shall be responsible for providing the day -to -day maintenance service for its portion of the leased premises. 10. Taxes. Lessee recognizes and understands that in accepting this lease that his interest in the demised premises may be subject to a possible possessory interest tax that may be imposed by County authority, and Lessee shall pay said tax, should it be imposed, and such tax payment shall not reduce any rent due hereunder. 11. No Assignment or Subletting. Lessee shall not assign or sublet this lease, or any portion thereof, nor make or suffer any alteration to be made in or on said property, other than the maintenance required hereinabove, without the prior written consent of the City Manager. 12. Assumption of Tenant Ability. Pursuant to Section 1942.1 of the California Civil Code, Lessee specifically waives his rights under Section 1941 and 1942 of the California Civil Code, and Lessee agrees that any improvements, repairs or maintenance of all or portions of the buildings, required to be done by Lessee, are a part of the consideration for the rental hereunder, and the rental payments hereinbefore set forth, shall not be reduced. Lessee covenants and agrees to assume all of the obligations and conditions under Section 1941 and 1942 of the California Civil Code, which read as follows: "91941. [Lessor to make dwelling -house fit for its purpose]. The Lessor of a building intended for the occupation of human beings must, in the absence of an agreement to the contrary, put it into a condition fit for such occupation, and repair all subsequent dilapidations thereof, which render it untenantable, except such as are mentioned in section nineteen hundred and twenty - nine. 91942. [When Lessee may make repairs, etc.] (a) If within a reasonable time after notice to the -4- lessor, of dilapidations which he ought to repair, he neglects to do so, the Lessee may repair the same himself, where the cost of such repairs does not require an expenditure greater than one month's rent of the premises, and deduct the expenses of such repairs from the rent, or the Lessee may vacate the premises, in which case he shall be discharged from further payment of rent, or performance of other conditions. This remedy shall not be available to the Lessee more than once in any 12 -month period. (b) For the purposes of this section, if a Lessee acts to repair and deduct after the 30th day following notice, he is presumed to have acted after a reasonable time. The presumption established by this subdivision is a presumption affecting the burden of producing evidence." 13. Permits and Licenses. Lessee is using the demised premises for the operation of a private school. Prior to commencement of said operation, Lessee shall obtain, and keep in force and effect during the term hereof, all permits, licenses or other entitlements to be used issued by any City, County, State, Federal or other governmental jurisdiction. Should any permit, license or other entitlement to use be lost or modified, Lessee shall forthwith terminate his operation or if necessary, a part thereof as is required by the loss and reduction of a license, permit, or entitlement to use. 14. Insurance - Hold Harmless. Lessee shall save and keep City, its officers, agents and employees, free and 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 premises herein demised. In partial performance of this obligation by Lessee, Lessee shall procure and at all time during the term of this lease, maintain in full force and effect, a policy or policies of public liability and property damage insurance protecting the City of Newport Beach, its officers, agents and employees from all claims or demands for damages. The policy, or policies shall provide for not less than Two Hundred Thousand Dollars ($200,000.00) for injury or death of one person; Five Hundred Thousand Dollars ($500,000.00) for injury or death of two or more persons; and Fifty Thousand Dollars ($50,000.00) for damages to property. The City Manager may require an increase in the amount of insurance from time -5- 0 0 to time in accordance with the changes and economic conditions. Said policy or policies shall contain an endorsement which shall provide as follows: "within the limits set forth in this policy, to indemnify and save the City of Newport Beach, its officers, agents and employees free and harmless from any damages, claims, loss or liability of any kind or nature whatsoever which the City of Newport Beach, its officers, agents or employees may hereafter sustain or suffer, or may be imposed upon them, arising out of, or any way connected with, the use or occupancy by the insured, its servants, agents and employees, of the premises described in a lease granted to the insured by the City of Newport Beach, the City of Newport Beach is named an additional insured under this policy. It is further agreed that said insurance shall be primary insurance and shall not contribute with any other third party liability insurance available to the City of Newport Beach and will include a severability of interest clause." Also, Lessee shall obtain and maintain any necessary workers' compensation insurance for all employees of Lessee. Lessee shall furnish, and maintain with City, either the original policy or policies, or a certified copy or copies thereof. The policy or policies shall be approved as to sufficiency by the City Manager and as to form by the City Attorney and shall be submitted to City concurrently with the execution of this lease. Said policy or policies shall further contain a provision that they may not be terminated without prior thirty (30) days written notice to City. 15. City's Right of Inspection. City reserves the right by its authorized agents, employees or representatives to enter the leased premises at any reasonable time to inspect the same or any part thereof and to attend to or protect the City's interest under this lease. 16. Compliance with Laws. Lessee covenants and agrees to comply with all of the rules, regulations, statutes, ordinances and laws of the State of California, County of Orange, City of Newport Beach, and any other governmental body or agency having a lawful jurisdiction over the demised premises • • or the business, enterprise or activities conducted thereon. 17. Non - Compliance. If Lessee fails to comply with any of the terms and conditions of this lease, City may give to Lessee a notice in writing of such failure and specify therein the particulars in which Lessee has failed to comply with the provisions of this lease. If Lessee fails for a period of ten (10) days after the giving of such notice to comply with the provisions of this lease, the City may, at its option, terminate this lease, and all rights of Lessee herein shall cease and terminate and Lessee shall immediately thereafter peacefully deliver possession of the premises to City. 18. Default and Termination of Lease. (a) Default. Time and each term, covenant and condition hereof are expressly made the essence of this lease. If Lessee fails to comply with any of the terms, covenants, or conditions of this lease, including the payment of rental herein reserved, at the time and in the amount herein required, and shall fail to remedy such default within thirty (30) days after service of a written notice from City so to do, or to commence in good faith to remedy any other default within thirty (30) days and thereafter diligently prosecute the same to completion, or if Lessee shall abandon or vacate the leased premises, City may, at its option, without further notice or demand, terminate this lease and enter upon the leased premises and take possession thereof and remove any and all persons therefrom with or without process of law. (b) Termination. City and Lessee each respectively reserve the right to terminate this lease for any reason, and without cause, at any time by giving the other party ninety (90) days'prior written notice of its intention to terminate. (c) Surrender of Possession Upon Termination. Lessee covenants and agrees that upon the expiration or sooner -7- 0 0 termination of this lease, Lessee will peacefully surrender the leased premises with all buildings and improvements, in the same condition as when received, and as maintained and improved by Lessee as required herein, less reasonable use and wear thereof, any damage by fire, act of God, or by the elements. Lessee expressly waives any right which it may have to relocation assistance or other costs in vacating the demised premises under the relocation law of the State of California, Section 7260, et sec. California Government Code. Any improvements built, constructed or placed upon the demised premises by the Lessee, or anyone holding by, under or through it, shall remain on the leased premises and become the property of the City without any costs to City upon termina- tion of this lease, whether by lapse of time or by reason of default, unless the Lessee elects, removes said improvements within sixty (60) days following the expiration or termination hereof. (d) 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 exclusive of the other or exclusive of any rights or remedies allowed by law, in the exercise of one or more rights, powers, elections or remedies shall not appear or be deemed a waiver of City's right to exercise any other. (e) No Waiver. No delay or omission of the City to exercise the right or power arising from any omission, neglect, or default of the Lessee 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 Lessee or any acquiescence therein. No waiver of any breach of any of the terms, covenants, agreements, restrictions or conditions of this lease shall be construed as a waiver of any succeeding breach of the same or ME 0 0 of any of the terms, covenants, agreements, restrictions or conditions of this lease. (f) HUD Acceptance. This lease is subject to automatic termination if, when and at such time, as the Department of Housing and Urban Development finds the Coopera- tive Use Plan between lessee and the Senior Citizens is unacceptable. (g) Liquidated Damages. Should Lessee hold over after receipt of notice from City to terminate the lease as provided hereinabove, and not with the consent of City, it is agreed that the damages suffered by City are extremely difficult to ascertain and the parties hereto agree that liquidated damages will accrue to the City in the amount of Sixty Dollars ($60.00) per day held over, in addition to rental charge payable on a per diem basis for each day held over by Lessee. 19. Attorneys' Fees. Should the City be required to commence any legal proceedings to enforce a term, covenant or condition of this lease, the prevailing party shall be compensated by the other for all costs and attorneys' fees incurred by the prevailing party in prosecuting an action hereunder. 20. Notices. It is mutually agreed that any notice or notices provided for by this lease or by law, to be given or served upon the Lessee, may be given or served by mail, registered or certified, with postage prepaid, and if intended for the City of Newport Beach, addressed to: City Manager City of Newport Beach 3300 Newport Boulevard Newport Beach, California 92663 or at such other address as may hereafter be furnished to Lessee in writing, and if intended for Lessee, addressed to Lessee at: -9- 2017 Miramar Drive Balboa, California 92661 Said notice may also be served personally from the other party, and such service shall be deemed complete at the expiration of forty -eight (48) hours from and after the deposit in the United States Mail of such notice, demand or communication. 21. Existing Lease. The terms of this lease supersede and take precedent over the terms and conditions of the existing lease between the City of Newport Beach and Lessee dated July 21, 1975, as extended for one year by Resolution No. 8735. IN WITNESS WHEREOF, the parties hereto have executed this lease as of the day and year first above written. ATTEST: c City Clerk APPROVED AS TO FORM: City Attorney CITY OF NEWPORT BEACH, A THE CARDEN SCHOOL OF CORONA DEL MAR By 4, G 76hn . Wilson By .�Gci a�J Judith A. Wilson -10- DDO /bc 5/31/77 lk I k (OD this is to 9trtifg to INSURANCE COMPANY OF NORTH AMERICA AND PACIFIC &LOYERS GROUP OF INSURANCE C &ANTES CERTIFICATE-OF INSURANCE (This Certificate of Insurance neither affirmatively nor negatively amends, extends or alters the coverage, limits, terms or conditions of the policies it certificates.) F CITY OF NEWPORT BEACH, CALIFORNIA Newport Beach, California COMPANY CODES © ALLIED INSURANCE ❑3 PACIFIC 30 day notice of cancellation and /or changes in © PACIFIC EMI L policy limits shall be mailed to the certificate) ® INSURANCE holder shown above OF NORTH that the following described policy or policies, issued by The Company as coded below, providing insurance only for hazards checked by "X" below, have been issued to: Name and AddressCardon School of Corona del Mar of Insured— 3300 Fifth Avenue, Corona del Mar, California 92625 covering in accordance with the terms thereof, at the following location(s): PEG F 797? MNITY COO.. 4 V. N21 City of ,er�,,Fer P-"b .< TYPE OF POLICY HAZARDS CO. CODE POLICY NUMBER POLICY PERIOD - LIMITS OF LIABILITY (a) Standard Workmen's W. C. Compensation & El El OStatutory E One Accident and Employers Liability Aggregate Disease (b) General Lia ' Ity Premises - -Operations (including "In- ® ❑g SP50785 9/12/76 to 500,000. Each Person cidental Contracts' as defined below) 9/12/79 $ ` Elevators ❑ ❑ C )❑ Accident Independent Contractors ❑ ❑ $500,000 Each 1 Occurrence °mo Completed Operations/Products ❑ ❑ Contractual, (Specific type as de- ❑ ❑ $500,000 Aggregate— Completed scribed in footnote below) — — — Operations /Products — — — — Premises - Operations, (Including "Incidental ❑ ''`cadent 50,000 Contracts" as defined $ below) ❑ ❑ $ Each �® Occurrence 8 Elevators ❑ ❑ $ 50,000 Aggregate —Prem. /Oyer, Independent Contractors ❑ $ 50,000 Aggregate— Protective xCompleted Operations /Products ❑ ❑ $ Aggregate--Completed a Operations /Products Contractual, (Specific type as de- ❑ ❑ scribed in footnote below) $ 50,000 Aggregate -- Contractual (c) Automobile Liability Owned Automobiles El El $ Each Person 1.3 Hired Automobiles ❑ ❑ /// El $ Each m c Non-owned Autoobiles El 1:1 C1 Occurrence Occurrence t'8 Owned Automobiles ❑ ❑ S❑ Accident Hired Automobiles ❑ ❑ $ Each )❑ Occurrence l as Non-owned Automobiles (d) IT IS HEREBY UNDERSTOOD AND A REED T THE CITY F NEWPORT BEACH, ITS OFFICERS, AGENTS AND EMPLOYEES ARE HEREBY N D AS ADDIT ONAL NAMED IN URED'S AS RES ECTS TO THE PREMISES OF 3300FIFTH AVENUE, CORONI DEL , IF., WHICH IE OWNED BY THE CITY OF NEWPORT BEACH AND LEASED BY THE NAMED INS RED. Contractual Footnote: Subject to all the policy terms applicable, specific contractual liability coverage is provided as respects (R a contract / Q purchase order agreements / ❑ all contracts (check applicable blocks) between the Insured and: _ Name of Other Party: Dated (if applicable): CONTRACT OF 7/14/75 _Contract No. (if any): Description (or Job): Definitions: "Incidental contract" means any written (1) lease of premises (2) easement agreement, except in connection with construction or demolition.-,'i-.: operations on or adjacent to a railroad, (3) undertaking to indemnity a municipality required by municipal ordinance, except in c °^ - with work for the municipality, (4) sidetrack agreement, or (5) elevator maintenance agreement. -; It is the intention of the company that in the event of cancelation of the policy or policies by the company, ten (10) days' written notice of such {�ROrtq tanulation will be given to you at the address stated above. � tesentative � S,C —tiD Pt 1-14 PRINTED IN UHA,,. .> i 1)•} <'( INSLIKANCE CUMPANT UP NUKIM AMERICA AND PACIFIC f�LOYERS GROUP OF INSURANCE C ANIES CERTIFICATE OF INSURANCE (This Certificate of Insurance neither affirmatively nor negatively amends, extends or alters the coverage, limits, terms or conditions of the policies it certificates.) 'ellis is to Illertik to COMPANY CODES CITY OF NEWPORT BEACH, CALIFORNIA Newport Beach, California © ALLIED INSURANCE CO. ® PACIFIC EMPLOYERSyIC 30 Day notice of cancellation and/or changes in © PACIFIC EMPL SURANCE v policy limits shall be mailed to the certificate \ , L holder shown above. –J ® INSURAN NO TCE RIC ' r W " n that the following described policy or policies, issued by The Company as coded below, providing insurance only for AP'V.J F .:_� hazards checked by ­X­ below, have been issued to: - R Name and Address Cardin School of Corona Del Mar city cry M 19�% is of Insured -- 3300 Fifth Avenue, Corona Del Mar, California 92625 of Ne aoai)er wcort Beazh covering in accordance with the terms thereof, at the folkswirg location(s): h � TY PE Of POLICY - HAZARDS CO. CODE POLICY NUMBER POLICY PERIoD lIM (a) Standard Workmen's C. Compensation & El El 5 One Accident and Employen' Liability Aggregate Disease (b) General Liability Premises - -Operations (including "In- 179 ® SP50785 - 9/12/76 to cidental Contracts' as defined below) - $500,000 Each Person N 3 Elevators ❑ ❑ 9/12/77 �❑ Accident 3 „ Independent Contractors ❑ ❑ $500,000 Each l� Occurreme Completed Operations/Products ❑ ❑ - - - - ME Contractual, (Specific type as de- ❑ F1 $500,000 Aggregate — Completed scribed in footnote below) — — — — — Operations/Products — Premises - Operations, (Including — — `[]-'ant "Incidental Contracts" as defined a ❑ ❑ $ 50,000 Each j (� Occurrence a Elevarors ❑E $ 50,000 Ag9ragata ---0xm. /Oyer. Inde Independent Contractors ❑ ❑ $ 50,000 Aggregate- - Protective 8 Completed Operations/Products ❑ ❑ - - $ Aggregate--Completed u` Contr,ctual, (Specific type as de- ❑ ❑ Operations/Products scribed in footnote below) $ 50,000 Aggregate— Contractual (e) Automobile Liability Automobiles El El _ S Each Person Hired Automobiles ( S❑ Accident _ Non -owned Automobiles — — E] El — — — $ Each 11 ?❑ Occurrence — —. t'OO Owned Automobiles ❑ ❑ 1 (❑ Accident u� Hired Automobiles ❑ ❑ $ � \ ❑ Occurrence M Non owned Automobiles WIT IS HEREBY UNDERSTOOD PND AG ED THAT THE CITY OF NEWPORT BEACH, ITS OFFICERS, AGENTS AND EMPLOYEES ARE HEREBY NAME1 AS AEDITIOISAL NAMED INSU D'S AS RESPECTS TO THE PREMISES OF 3300 FIFTH AVENUE, CORONA LEASED BY THE NAMD INSUIUD. DEL M R, CAIIF., WHICH IS OWNED BY THE CITY OF NEWPORT BEACH AND Contractual FootnoN: Subject to all the policy terms applicable, specific contractual liability coverage is provided as respect= a contract / Q purchase order agreements / Q all contracts (check applicable blocks) between the Insured and: - Name of Other Parry: Dated (if applicable): contract of 7/14/7$ Contract No. (if any): Description (or Job): Definitioas: "Incidental contract' means any written (1) lease of premises (2) easement agreement, except in connection with construction or demolition operation% on or adjacent to a railroad, (3) undertaking to indemnify a municipality requirreeddenbyy/Jmunicipal o inisme, except in connection with work for the municipality, (4) sidetrack agreement, or (5) elevator maintenance agre� "(./`. It is the intention of the company that in the event of cancelation of the policy or policies by the company, ten (10) days' written notice of such cancelation will be given to you at the address stated above. AWhorized Representative LC —I389a 1 -14 PRINTED IN t .S.A. 1. ORNi1NAL 9 6 RESOLUTION NO. O �7 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A LEASE AGREEMENT WITH THE CARDEN SCHOOL OF CORONA DEL MAR FOR THE FIFTH AND MARGUERITE PROPERTY WHEREAS, there has been presented to the City Council of the City of Newport Beach a Lease Agreement between the City of Newport Beach and John D. Wilson and Judith A. Wilson, dba The Carden School of Corona del Mar; and WHEREAS, the City Council has reviewed the terms and conditions of said Lease Agreement and finds them to be fair and equitable and that it .would be in the best interest of the City to authorize the Mayor and City Clerk to execute said Lease Agreement; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Newport Beach that said Lease Agreement above described is approved, and the Mayor and City Clerk are hereby authorized and directed to execute the same on behalf of the City of Newport Beach but not until such time as Lessees file a certificate of insurance as required by the Lease Agreement with the City Manager. ATTEST: City Clerk ADOPTED this 23rd day of May , 1977. Mayor DDO /bc 5/21/77