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CLARKE MARINE INSURANCE
CLARKE GARVEY INSURANCE SERVICES
3188 B AIRWAY AVE
COSTA MESA, CALWORNIA 926U
(800) 695.19951(949) 444 -2679
FAX (714) 444. 0176!(714) 444-0126
FACSXWLR TRANSM1SMN
SEPTEMBER 28, 1998
NUMBER OF PAGES (INCLUDING TRANSMrrTAL) a�
TO: TONY MELLUM
CITY OF NEWPORT BEACH
RE: THE GALLEY CAFE
LIABILITY INSURANCE
MR. MELLUM,
AT THE REQUEST OF MR. FLACH OF THE GALLEY CAFE, WE ARE
ENCLOSING A COPY OF THE 51098 CERTIFICATE OF INSURANCE SENT TO
THE CITY OF NEWPORT BEACH. IF WE CAN HELP IN ANY FURTHER WAY,
PLEASE FEEL FREE TO CALL.
THANK YOU.
BEST REGARIDS
t0'd 0000000000 Nor 411+ T£:ii NOU 86- BZ -43S
SEP -29 -1998 14:17 P.01
GALLEY CAFE
829 HARBOR ISLAND DRIVE • NEWPORT BEACH. CA 92662 • (714) 673 -4110
April 15, 1995
fear 'cony:
As per our conversation, enclosed is a copy of the transfer of the Galley Cafe from the
Flach Family Trust to Edward H. Flach, Jr. Also enclosed is a copy of the page of the
lease that allows the change with no contest.
If you need any further information please contact me a 673 -4110.
Thank you,
Ed Flach, Jr.
� I
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GiVY COUNCIL
Gill' OF NEWPORT BEACH
JAN 2 5 1988
APPROVED
CITY OF NEWPORT BEACH
Marine Department
January 11, 1988
TO: MAYOR AND CITY COUNCIL
FROM: Tideland Affairs Committee
SUBJECT: GALLEY CAFE (BALBOA YACHT BASIN)
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Agenda Item No. -R� -c-
F-3 (Q)
BY THE CITY COUNCIL
CITY OF NEWPORT BEACH
JAN 111988
LEASE
RECOMMENDATION: If desired, authorize the Mayor and City Clerk to
execute the attached lease with Myrtle Flach and Edward H. Flach,
Jr., owners of the Galley Cafe Restaurant.
BACKGROUND:
Myrtle Flach and Edward H. Flach, Jr., owners of the Galley Cafe,
located at the Balboa Yacht Basin, by letter dated May 1986,
requested the City to commence lease negotiations for the purpose
of entering into a new lease with the Galley Cafe. The existing
lease with the Galley Cafe restaurant expires on December 31,
1987.
George Hamilton Jones, MAI, Appraisal Consultants
the City of Newport Beach to prepare a Fair Re
the Galley Cafe Restaurant. The appraisal report
May of 1987 and has been reviewed by the
Committee and the lessee on several occasions
three months.
EXISTING LEASE SITE AND SYNOPSIS:
------------------------ - - - - --
were retained by
ital Valuation of
was completed in
Tideland Affairs
during the last
The Galley Cafe Cafe is located at 829 Harbor Island Drive,
Newport Beach, California. The Galley cafe consists of a 902
square foot structure plus 400 square feet of garage storage
space. The structure leased to the Galley Cafe is constructed of
wood frame on a concrete foundation. There are ten counter stools
and seven booths to serve a total of 38 customers.
The following tables are an existing lease synopsis and rent
history:
Dated: 9/30/71
Lessor: TIC(assigned to City of N.B. in July, 1981)
Lessee: Edward H. Flach and Myrtle E. Flach
Property: Galley Cafe at 829 Bayside Drive, N.B.
1. A term of ten years with three five year options at Fair
Market Rent, to be set by appraisal.
2. Minimum guaranteed rent of $17,500 per year paid monthly
in advance. In addition, a Percentage Rental in a sum equal
to 68 of all gross sales, less the amount of the monthly
minimum guaranteed rent paid in advance.
3. Premises will include 902 square foot restaurant building
and two garage spaces of 200 square feet each.
4. Property expenses, including utilities, interior
maintenance and property and liability insurance will be at
the expense of the Lessee, excepting structural maintenance
and taxes, which will be at the expense of the Lessor.
5. Parking will be permitted within designated areas within
the Balboa Yacht Basin, as available, subject to the control
of Lessor.
6. The Lessee will have the right to assign the lease
subject to the approval of the Lessor, not to be
unreasonably withheld.
7. Permitted uses will include restaurant purposes only,
without prior written consent of Lessor.
8. Minimum rent to be adjusted after five years to 758 of
average of the yearly three prior years of total rents
paid to the City.
PROPOSED _IMPROVEMENTS�_TO_LEASE_SITE�
Orange County Health Department has requested that the Galley Cafe
enclose a small breezeway between the restaurant building and the
storage garages. The City is proposing to do this work during the
1988 -89 fiscal year. No drawings or estimates of construction
costs are available at this time. It appears that the cost will
be less than $10,000.
OTHER LEASE CONDITIONS:
--------------- - - - - --
The remaining conditions of the lease are considered typical. The
lease negotations were conducted by the Marine Director in
conjunction with the Tideland Affairs Committee, comprised of
Chairman Ruthelyn Plummer and Councilman Phil Maurer. The City
Attorney's office prepared the lease based on the Fair Rental
Valuation Appraisal prepared by George H. Jones.
David Harshbarger f
Marine Director
Attachment: Lease (Council only)
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LEASE BETWEEN THE CITY OF NEWPORT BEACH AND
EDWARD HOFFMAN FLACH AND MYRTLE ELIZABETH FLACH,
TRUSTEES OF THE FLACH FAMILY TRUST,
U /T /A DATED 10/18/82,
DOING BUSINESS AS THE GALLEY
•� J
INDEX
ARTICLE
PAGE
1.
LEASED PREMISES
1
2.
TERM
2
3.
RENTAL
2
4.
TAXES
7
5.
USE OF PREMISES
8
6.
ALTERATIONS
9
(a) Lessor's Approval
9
(b) Repairs by Lessee
10
(c) No Eviction
11
7.
REPAIRS
11
8.
UTILITIES
13
9.
LIABILITY INSURANCE
13
A. Liability Insurance
14
B. Workers' Compensation
14
C. Property Insurance
14
D. Subrogation Waiver
15
E. Failure to Secure
15
F. Additional Insured
15
10.
RECONSTRUCTION
16
11.
RIGHT OF ENTRY
18
12.
SIGNS
19
13.
SALES RESTRICTIONS
19
14.
ASSIGNMENTS AND SUBLETTING
20
15.
BANKRUPTCY- INSOLVENCY
22
16.
HOLD HARMLESS
22
17.
LIENS
24
18.
LESSOR PAYING CLAIMS
25
19.
DEFAULTS
26
20.
TERMINATION
27
21.
ATTORNEY'S FEES
27
22.
REMOVAL
27
23.
PAYMENTS AND NOTICES
28
24.
EMINENT DOMAIN
29
(a) Definition of Terms
29
(b) Total Taking
30
(c) Partial Taking
30
(d) Allocation of Award
30
(e) Effect of Termination
31
(f) Voluntary Sales
31
25.
HOLDING OVER
31
26.
ACCEPTANCE OF PREMISES BY LESSEE
32
27.
SCOPE OF THE AGREEMENT
32
28.
AMENDMENT OF LEASE
32
29.
CONSTRUCTION AND EFFECT
32
LEASE
THIS LEASE, executed this day of
198, by and between the CITY OF NEWPORT BEACH, a municipal
corporation, hereinafter referred to as "LESSOR ", EDWARD HOFFMAN
FLACH and MYRTLE ELIZABETH FLACH, TRUSTEES OF THE FLACH FAMILY
TRUST, U /T /A DATED 10/18/82, DOING BUSINESS AS THE GALLEY,
hereinafter referred to as "LESSEE ".
1. LEASED PREMISES: In consideration of the rent herein
specified to be paid and the covenants and conditions to be
observed and performed by LESSEE, LESSOR does hereby lease to
LESSEE that certain space (hereinafter referred to as the "said
Premises ") delineated in red on the attached Exhibit "A ", with
dimensions as shown thereon, known as the Galley Cafe, located at
829 Harbor Island Drive, in the City of Newport Beach, County of
Orange, State of California, said building being a part of the
development known as "Balboa Yacht Basin," and two (2) garage
spaces of approximately two hundred (200) square feet each
together with the non - exclusive right, in common with other
LESSEES and tenants of LESSOR, to the use of any parking area(s)
in the Balboa Yacht Basin which LESSOR may from time to time
designate for patron and employee parking.
-1-
2. TERM: The initial term of this Lease shall be for a
period of ten (10) years, commencing on the first day of January,
1988, ( "Commencement Date ") and ending on the 31st day of
December, 1998, subject, however, to earlier termination as
hereinafter provided.
LESSEE may, at his option, extend the term of this Lease to
three (3) additional periods of five (5) years each provided that
LESSEE notifies the LESSOR in writing of his election to extend
at least six (6) months prior to expiration of the term of this
Lease ( "Extended Term ") and execute a Modification of this Lease
to increase the rent during the Extended Term to the current fair
market rent. LESSOR, at its sole discretion, will determine the
current fair market rent. Nothwithstanding anything to the
contrary herein, if LESSEE is in default of their obligation
under this Lease on the date the Notice to Extend is given or the
date the Extended Term is to commence, the Extended Term shall
not commence and this Lease shall expire at the end of the last
term in effect.
3. RENTAL:
(a) Minimum Rent: LESSEE agrees to pay to LESSOR as
rental for the use and occupancy of the said Premises the sum of
seventeen thousand five hundred dollars ($17,500) per year
-2-
payable in monthly installments in advance on or before the first
day of each month according to the following schedule:
January $ 1,308.33
February $ 1,308.33
March $ 1,308.33
April $ 1,608.33
May $ 1,608.33
June $ 1,608.33
July $ 1,608.33
August $ 1,608.33
September $ 1,608.33
October $ 1,308.33
November $ 1,308.33
December $ 1,308.33
Total: $17,500.00
The yearly rent and monthly payment shall be
adjusted during the Initial Term on the fifth (5th) year
following the Commencement Date. The adjusted minimum yearly
rent shall be set as the sum equal to seventy -five percent (75 %)
of the average of the prior three (3) years of the total rent
(Minimum Rent and Percentage Rental) paid to LESSOR under
Paragraph 3 of this Lease. In no event shall the adjusted
minimum rent be set at an amount less than $17,500.00.
(b) Percentage Rental: In addition to the minimum
guaranteed rental hereinabove provided, LESSEE shall pay to
LESSOR at the time and in the manner herein specified a
percentage rental of six percent (6 %) of the amount of all Gross
Sales made in, upon or from said Premises during each calendar
-3-
year of the term hereof, less the aggregate amount of the minimum
guaranteed rental previously paid by LESSEE during said calendar
year.
Within thirty (30) days after the end of each
calendar month of the term hereof LESSEE shall furnish to LESSOR
a statement in writing, certified by LESSEE to be correct,
showing the total gross sales made in, upon or from said Premises
during the preceding calendar month, and on the first day of that
calendar month next succeeding, LESSEE shall pay to LESSOR the
percentage rent due.
Within twenty (20) days after the end of each
calendar year of the term hereof, LESSEE shall furnish to LESSOR
a statement in writing, certified by LESSEE to be correct,
showing the total gross sales by months made in, upon or from
said Premises during the preceding calendar year. At that time
any adjustment necessary shall be made between LESSOR and LESSEE,
so that the percentage rental, although payable monthly, shall be
computed on an annual basis. Any overpayment by LESSEE upon such
adjustment shall be credited by LESSOR on the monthly
installments of the minimum guaranteed rental falling due
thereafter, and with respect to the last month of the term of the
Lease if there is any overpayment LESSOR shall promptly reimburse
-4-
the same to LESSEE, and any underpayment by LESSEE shall be paid
to LESSOR with the installment of minimum guaranteed rental next
falling due after notice of such underpayment to LESSEE.
(c) Gross Sales: The term "gross sales" of the LESSEE
as used in this Lease is defined to be the gross selling price of
all merchandise, or services sold in or from the Premises by the
LESSEE, its subtenants, licensees and concessionaires, whether
for cash or on credit and whether made by store personnel or by
vending machines, excluding therefrom the following:
(i) The selling price of all merchandise returned
by customers and accepted for full credit or the amount of
discounts and allowances made thereon;
(ii) Goods returned to sources or transferred to
another store or warehouse owned by or affiliated with LESSEE;
(iii) Sums and credits received in the settlement
of claims for loss of or damage to merchandise;
(iv) The price allowed on all merchandise traded
in by customers for credit or the amount of credit for discounts
and allowances made in lieu of acceptance thereof;
(v) Cash refunds made to customers in the ordinary
course of business, but this exclusion shall not include any
amount paid or payable for trading stamps;
(vi) Receipts from public telephones, stamp
machines or public toilet locks;
-5-
(vii) Sales taxes, luxury taxes, consumers' excise
taxes, gross receipts taxes and other similar taxes now or
hereafter imposed upon the sale of merchandise or services, but
only if collected separately from the selling price of
merchandise or services and collected from customers.
All sales originating at the Premises shall be
considered as made and completed therein, even though bookkeeping
and collection of the account may be transferred to another place
and even though actual filling of the sale or service order and
actual delivery of the merchandise may be made from a place other
than the Premises.
(d) LESSEE shall keep and maintain and shall cause each
of its sublessees and concessionaires, if any, to keep and
maintain on the Premises full, complete and accurate books,
records and accounts of all daily gross sales, both for cash and
on credit. LESSOR and its agents and employees shall have the
right at any and all times during regular business hours to
examine and inspect all of said books, records and accounts,
including all sales tax reports and Federal and State Income Tax
Returns pertaining to that business conducted in, upon or from
said Premises, for the purpose of investigating and verifying the
accuracy of any statement of gross sales hereinabove provided for
in Subparagraph (c). If such inspection shall disclose a
liability for rent to the extent of two percent (2 %) or more of
gross sales theretofore computed and reported by LESSEE, LESSEE
shall promptly pay to LESSOR the cost of such inspection and the
amount of any deficiency in rent. Any information gained by
LESSOR from such statements or inspection shall be confidential
and shall not be disclosed except to carry out the purposes
hereof, providing, however, the LESSOR shall be permitted to
divulge such information in connection with any financing
arrangements or sale or exchange of said Premises by LESSOR.
(e) Any payment due from LESSEE to LESSOR under the
provisions of this Lease which shall not be paid when due shall
be subject to a late charge at the rate of ten percent (10 %) per
annum from the date due and payable by the terms of this Lease
until the same shall be paid. All payments hereunder shall be
paid in lawful money of the United States.
4. TAXES:
(a) LESSOR shall pay and discharge all taxes, general
and special assessments which during the term of this Lease may
be levied upon or assessed against the said Premises and all
interest therein and all improvements and other property thereon.
(b) During the term hereof LESSEE shall pay prior to
delinquency all taxes assessed against and levied upon fixtures,
furnishings, equipment and all other personal property of LESSEE
contained in said Premises, and when possible LESSEE shall cause
said fixtures, furnishings, equipment and other personal property
-7-
0 9
to be assessed and billed separately from the real property of
LESSOR. In the event any or all of the LESSEE'S fixtures,
furnishings, equipment and other personal property shall be
assessed and taxed with the LESSOR'S real property, the LESSEE
shall pay to LESSOR its share of such taxes within ten (10) days
after delivery to LESSEE by LESSOR of a statement in writing
setting forth the amount of such taxes applicable to LESSEE's
property.
5. USE OF PREMISES:
(a) During the term hereof LESSEE shall use and occupy
said Premises for the operation of a restaurant business and for
no other use or purpose, except by and with the prior written
consent of LESSOR.
(b) No use shall be made or permitted of said Premises
or any part thereof, nor any acts done which shall constitute a
nuisance or unreasonable annoyance to other LESSEES in the Balboa
Yacht Basin or which shall violate, make inoperative or increase
the existing rate of any insurance policy held by or for the
benefit of LESSOR. LESSEE shall not sell, or suffer or permit to
be kept, used or sold in, upon or about said Premises, any
gasoline, distillate or other petroleum or nuclear product, or
any substance or material of an explosive, inflammable or
radiological nature which may be prohibited by any insurance
policy held by or for the benefit of LESSOR, or which may
ME
endanger any part of the Balboa Yacht Basin or its occupants,
business patrons or invitees, without the written consent of
LESSOR and all insurance companies carrying public liability,
rental income, fire, extended coverage, plate glass or other
casualty insurance pursuant to any provision hereof.
(c) LESSEE shall not commit or suffer to be committed
any waste upon said Premises, or any nuisance or act or thing
which may disturb the quiet enjoyment of any other LESSEE,
concessionaire, licensee or occupant in the Balboa Yacht Basin.
(d) LESSEE shall at all times comply with all
governmental rules, regulations, ordinances, statutes and laws
now in force or which may hereafter be in force pertaining to
said Premises and to LESSEE's use thereof, and a finding of
guilty by a competent court for any violation thereof shall be
conclusively deemed a default under this Subparagraph (d).
(e) Occupancy of said Premises after the date of
commencement of the term hereof shall constitute the acceptance
by LESSEE of the safety and good order and condition thereof.
6. ALTERATIONS:
(a) Lessor's Approval. No repairs, alterations,
changes or additions shall be made to said Premises without
LESSEES prior written consent and LESSOR'S approval of the plans
-9-
t •
and specifications therefor. All such work which may be done
within said Premises by LESSEE shall be done pursuant to LESSOR'S
directions.
LESSOR agrees to physically connect one (1) of the
garage spaces with the restaurant structure subject to securing
all appropriate permits and licenses and in accordance with
approval of the Newport Beach Building Department.
(b) Repairs by Lessee. LESSEE shall keep all of said
Premises in such repair, order and condition as the same are in
on the commencement of the Lease Term or may be put in by
subsequent changes, alterations, additions and repairs during the
Lease Term, except such damages as shall be due to reasonable use
and wear and /or damage by fire or unavoidable casualty. LESSEE
shall make such repairs as are required of LESSEE under the
foregoing sentence in and about said Premises necessary to
preserve said Premises in such repair, order and condition;
provided, however, that LESSOR may elect to make any such repairs
at the expense of LESSEE, which expense shall be due and payable
upon demand therefor by LESSOR and thereupon become a charge
under this Lease. Notwithstanding the foregoing, LESSOR shall
make, at its expense, all repairs to said Premises occasioned by
the act or neglect of LESSOR, its agents or employees. All
repairs shall be of the quality and class equal to the original
work. LESSEE expressly waives all right to make repairs at
-10-
LESSOR'S expense under the provision of Sections 1041 and 1042 of
the Civil Code of the State of California. Any alterations,
improvements, changes or repairs to said Premises shall become
the property of LESSOR and shall remain upon and be surrendered
with said Premises subject to any rights of removal contained in
this Lease. LESSEE shall, at the expiration of earlier
termination of this Lease, surrender said premises to LESSOR in
as good condition and repair as reasonable and proper use thereof
will permit.
(c) No Eviction. Except as otherwise provided in
Paragraph 10, there shall be no allowance to LESSEE for
dimunition of rental value and no claim by LESSEE for eviction
from said Premises by reasons of inconvenience, annoyance or
injury to LESSEE arising from any repairs, alterations,
replacements or improvements made to said Premises. LESSOR shall
not be liable to LESSEE for failure to make repairs to said
Premises occasioned by the act or neglect of LESSOR or its
employees unless LESSOR has received from LESSEE written notice
of the need for such repairs and has failed to commence and
diligently complete such repairs within a reasonable time
thereafter.
7. REPAIRS: LESSOR agrees, at its sole cost and expense,
to keep and maintain in good order, condition and repair the
foundations, roof, exterior walls and structural portions of the
- 11 -
building in which said Premises are located. LESSOR reserves the
right at any time and from time to time without the same
constituting an actual or constructive eviction and without
incurring any liability to LESSEE therefor or otherwise affecting
LESSEE'S obligations under this Lease, to make such changes,
alterations, additions, improvements, repairs or replacements in
or to the building (including said Premises if required so to do
by any law or regulation) and the fixtures and equipment thereof,
as well as in or to the street entrances, halls, passages, and
stairways thereof, or after reasonable notice, to change the
name, number and designation by which the building is commonly
known, as LESSOR may deem necessary or desirable, and to change
the arrangement or location of entrances or passageways, doors
and doorways and corridors, provided, however, that there be no
unreasonable obstruction of the right of access to, or
unreasonable interference with the use and enjoyment of, said
Premises by LESSEE. Nothing contained in this Paragraph shall be
deemed to relieve LESSEE of any duty, obligation or liability of
LESSEE with respect to making any repair, replacement or
improvement or complying with any law, order or requirement of
any government or other authority and nothing contained in this
Paragraph shall be deemed or construed to impose upon LESSOR any
-12-
obligation, responsibility or liability whatsoever, for the care,
supervision or repair of the building or any part thereof other
than as otherwise provided in this Lease.
8. UTILITIES: LESSEE shall pay for all water, gas, heat,
light, power and trash removal services and shall provide minimal
interior maintenance service.
9. LIABILITY INSURANCE. Prior to the Commencement Date of
this Lease, LESSEE shall furnish the LESSOR with certificates
showing the type, amount, class of operations covered, effective
dates and dates of expiration of insurance policies. Such
certificates, which do not limit LESSEES' indemnification, shall
also contain substantially the following statement:
"The Insurance covered by this certificate
will not be cancelled or materially altered,
except after thirty (30) days' written notice
has been received by the LESSOR."
It is agreed that LESSEE shall maintain in force at all time
during the performance of this Lease all appropriate policies of
insurance, and that said policies shall be secured from a good
and responsible company or companies, acceptable to LESSOR, doing
insurance business in the State of California.
-13-
LESSEES shall maintain the following insurance coverage:
A. Liability Insurance. The general liability coverage
shall provide the following minimum limits:
Bodily Injury $250,000 each person
$500,000 each occurrence
$500,000 aggregate
Property Damage $100,000 each occurrence
$250,000 aggregate
A combined single limit policy with aggregate limits in the
amount of one million dollars ($1,000,000) will be considered
equivalent to the required minimum limits. All said coverage to
include liability for occurrences on the Premises.
B. Workers' Compensation. All employees of the LESSEE must
be included under such policy in an amount and with coverage to
meet all requirements of the Labor Code of the State of
California.
C. Property Insurance. LESSEE shall obtain and keep in
force during the term of this Lease a policy of policies of
insurance covering loss or damage to the Premises, and covering
loss or damage to LESSEE'S fixtures, equipment, improvements and
personal property ( "personal property ") in the amount of at least
eighty percent (80 %) of the full replacement value thereof, as
the same may exist from time to time, against all perils included
within the classification of fire, extended coverage, vandalism
and malicious mischief.
-14-
Each year during the term of this Lease, LESSEE shall provide
LESSOR with appropriate amended insurance endorsement which
reflects eighty percent (80 %) of the current replacement value of
the Premises and the full replacement value of LESSEE'S personal
property. Said insurance under this Subsection C shall provide
for payment of all structural loss or structural damage to the
Premises directly to LESSOR and all other payments directly to
LESSEE.
D. Subrogation Waiver. LESSEE hereby waives any and all
rights of recovery against LESSOR, or against the employees,
agents and representatives of LESSOR, for loss of or damage to
LESSEE or its property or the property of others under its
control, where such loss or damage is insured against under any
insurance policy, whether or not required by this Lease, in force
at the time of such loss or damage.
E. Failure to Secure. If LESSEE at anytime during the term
hereof, should fail to secure or maintain the foregoing
insurance, LESSOR shall, after two (2) days' notice, be permitted
to obtain such insurance in the LESSEE'S name or as an agent of
the LESSEE and shall be compensated by the LESSEE for the costs
of the insurance premiums. LESSEE shall pay LESSOR interest on
paid insurance premiums at the maximum rate permitted by law
computed from the date written notice is received that the
premiums have been paid.
-15-
F. Additional Insured. LESSOR, its City Council, boards
and commissions, officers, agents, servants, and employees shall
be named as an additional insured under the policies of insurance
required by this Lease. The naming of an additional insured
shall not affect any recovery to which such additional insured
would be entitled under this policy if not named as such
additional insured; and an additional insured named herein shall
not be held liable for any premium or expense of any nature on
this policy or any extension thereof.
10. RECONSTRUCTION:
(a) In the event the building in which the said
Premises are located is damaged by fire, or perils covered by
extended coverage insurance, the LESSOR shall:
(1) In the event of total destruction, within a
period of ninety (90) days thereafter, commence repair,
reconstruction and restoration of said building and prosecute the
same diligently to completion in which event this Lease shall
continue in full force and effect; or within said ninety (90) day
period elect not to so repair, reconstruct or restore said
building, in which event this Lease shall cease and terminate.
In either event, LESSOR shall give the LESSEE written notice of
its intention within said ninety (90) day period.
-16-
(2) In the event of a partial destruction of the
building to an extent not exceeding twenty -five percent (25 %) of
the full insurable value thereof and if the damage thereto is
such that the building may be repaired, reconstructed or restored
within a period of ninety (90) days from the date of the
happening of such casualty, the LESSOR shall commence and proceed
diligently with the work of repair, reconstruction and
restoration and the Lease shall continue in full force and
effect; or if such work of repair, reconstruction and restoration
is such as to require a period longer than ninety (90) days or
exceed twenty -five percent (25 %) of the full insurable value
thereof, the LESSOR may either elect to so repair, reconstruct
and restore and the Lease shall continue in full force and effect
or said LESSOR may elect not to repair, reconstruct or restore
and the Lease shall in such event terminate. Under any of the
conditions of this subparagraph provided, the LESSOR shall give
written notice to the LESSEE of its intention within the period
of ninety (90) days.
(3) In the event that a partial or total
destruction (as described in (1) and (2) above) of the building
takes place during the term hereof, either the LESSOR or LESSEE,
at its option, may elect to terminate this Lease upon written
notice within thirty (30) days after such destruction.
-17-
(b) In the event of repair, reconstruction and
restoration as herein provided, the rental provided to be paid
under Paragraph 3 hereof shall be abated proportionately in the
ratio which the LESSEE'S use of the Premises is impaired during
the period of such repair, reconstruction or restoration. The
LESSEE shall continue the operation of its business on the
Premises during any such period to the extent reasonably
practicable from the standpoint of prudent business management.
The LESSEE shall not be entitled to any compensation or damages
for loss in the use of the whole or any part of the Premises
and /or any inconvenience or annoyance occasioned by any such
damage, repair, reconstruction or restoration.
11. RIGHT OF ENTRY: LESSEE shall permit LESSOR and its
agents to enter upon said Premises at all reasonable times for
the purpose of inspecting the same and for the purpose of posting
any notice deemed necessary by LESSOR for the protection of its
interest, and for making any repairs or alterations provided for
in this Lease. During the last ninety (90) days of the term
hereof and at any time after notice of termination of this Lease
has been given as provided in this Lease, LESSOR may place and
maintain on said Premises customary "For Sale" and /or "For Lease"
signs and may, at all reasonable times, enter said Premises for
the purpose of displaying said Premises to prospective lessees.
-18-
LESSOR or its agents may, during the progress of any work on
the Premises, keep and store upon the Premises all necessary
materials, tools and equipment and LESSOR shall not in any such
event be liable for inconvenience, annoyance, disturbance, loss
of business or other damage to LESSEE and the obligations of
LESSEE under this Lease shall not be affected.
12. SIGNS: LESSEE shall not erect or maintain or permit to
be erected or maintained any sign, marquee or awning on said
Premises without the prior written consent of LESSOR. LESSOR
shall have the right to approve the type and size, location and
color of all signs which LESSEE desires to use or place in or
upon said Premises. The LESSEE shall affix and maintain upon the
glass panes and supports of the show windows and within twelve
(12) inches of any windows or upon the exterior walls of the
building only such signs, advertising placards, names, insignia,
trademarks and descriptive material as shall have first received
the written approval of the LESSOR as to size, type, color,
location, copy, nature and display qualities.
13. SALES RESTRICTIONS: Excepting normal sales of moored
boats, LESSEE shall not display, sell or store merchandise
outside the defined exterior walls and permanent doorways of said
Premises, and no sale by auction in, upon or from said Premises,
whether said auction be voluntary, involuntary, pursuant to any
-19-
assignment for benefit of creditors or pursuant to any bankruptcy
or other insolvency proceedings, shall be conducted.
14. ASSIGNMENTS AND SUBLETTING: (a) LESSEE may transfer or
assign this Lease, or any right or interest hereunder, or sublet
the Leased Premises or any part thereof, after first obtaining
the prior written consent and approval of LESSOR. However,
assignment of this Lease to Edward H. Flach, Jr. shall be allowed
unconditionally without consent of LESSOR upon transfer of
LESSEE'S business interest to Edward H. Flach, Jr. Such consent
will not be unreasonably withheld. LESSOR hereby reserves the
right to condition any such approval upon LESSOR'S determination
that the assignee or sublessee is (i) as financially responsible
as LESSEE and (ii) has demonstrated an ability and willingness to
pay or to operate a similar business generating a sales volume
sufficient to pay the yearly rent and make the monthly payments
as defined in Paragraph 3. No transfer or assignment, whether
voluntary or involuntary, by operation of law, under legal
process or proceedings, by receivership, in bankruptcy, or
otherwise, and no subletting, shall be valid or effective without
such prior written consent and approval. Should LESSEE attempt
to make or suffer to be made any such transfer, assignment or
subletting, except as aforesaid, or should any of LESSEE'S rights
under this Lease be sold or otherwise transferred by or under
court order or legal process or otherwise, or should LESSEE be
-20-
•
adjudged insolvent or bankrupt, then and in any of the foregoing
events LESSOR may, at its option, terminate this Lease forthwith
by written notice thereof to LESSEE. Should LESSOR consent to
any such transfer, assignment or subletting, such consent shall
not constitute a waiver of any of the restrictions of this
paragraph and the same shall apply to each successive transfer,
assignment or subletting hereunder, if any.
(b) If the LESSEE hereunder is a corporation, an
unincorporated association, or a partnership, the transfer,
assignment or hypothecation of any stock or interest in such
corporation, association or partnership in the aggregate in
excess of twenty -five percent (25 %) shall be deemed an assignment
within the meaning and provisions of this Paragraph; provided,
however, a transfer or assignment or any such stock or interest
by a shareholder or member to his spouse, children or
grandchildren is excepted from the foregoing provision.
(c) If the LESSOR consents to an assignment or transfer by
LESSEE of all or a portion of LESSEE'S interest under this Lease,
LESSEE shall pay, or cause to be paid, a transfer fee of one
hundred dollars ($100); provided, however, that such transfer fee
shall not be payable upon LESSOR'S consent to a transfer or
assignment of LESSEE'S interest hereunder as security for a loan.
-21-
15. BANKRUPTCY- INSOLVENCY: The LESSEE agrees that in the
event all or substantially all of the LESSEE's assets are placed
in the hands of a receiver or trustee, and such receivership or
trusteeship continues for a period of thirty (30) days, or should
the LESSEE make an assignment for the benefit of creditors or be
adjudicated a bankrupt, or should the LESSEE institute any
proceedings under the Bankruptcy Act or under any amendment
thereof which may hereafter be enacted, or under any other act
relating to the subject of bankruptcy wherein the LESSEE seeks to
be adjudicated a bankrupt, or to be discharged of its debts, or
to effect a plan of liquidation, composition or reorganization,
or should any involuntary proceeding be filed against the LESSEE
under any such bankruptcy laws and the LESSEE consent thereto or
acquiesce therein by pleading or default, then this Lease or any
interest in and to the said Premises shall not become an asset in
any of such proceedings and, in any such event and in addition to
any and all rights or remedies of the LESSOR hereunder or by law
provided, it shall be lawful for the LESSOR to declare the term
hereof ended and to re -enter the said Premises and take
possession thereof and remove all persons therefrom, and the
LESSEE shall have no further claim thereon or hereunder.
16. HOLD HARMLESS: LESSEE shall indemnify and hold harmless
LESSOR, its City Council, boards and commissions, officers,
agents, servants and employees from and against any and all
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0 0
actions, causes of action, obligations, costs, damages, losses,
claims, liabilities and demands of any nature whatsoever,
including reasonable attorneys' fees, regardless of the merit or
outcome of any such claim or suit, arising from or in any manner
connected to the use or possession of the Premises by LESSEE
conducted pursuant to this Lease.
LESSEE shall indemnify and hold harmless LESSOR, its City
Council, boards and commissions, officers, agents, servants and
employees from and against any and all actions, causes of action,
obligations, costs, damages, losses, claims, liabilities and
demands of any nature whatsoever, including reasonable attorneys'
fees, accruing or resulting to any and all persons, firms, or
corporations furnishing or supplying work, services, materials,
equipment or supplies in connection with services, materials,
equipment or supplies in connection with services or work
conducted or performed pursuant to this Lease by LESSEE and
arising out of such activities or work, and from any and all
claims and losses whatsoever, including reasonable attorneys'
fees, accruing or resulting to any person, firm or corporation
for damage, injury or death arising out of LESSEE'S use and
possession of the Premises.
Without limiting the generality of the foregoing, LESSEE
hereby agrees that the LESSOR, its City Council, boards and
commissions, officers, agents, servants and employees, shall not
-23-
be liable for injury to LESSEE'S business or any loss of income
therefrom or for damage to the goods, wares, merchandise,
improvements or other property of LESSEE, LESSEE'S employees,
invitees, customers, or any other person in or about the
Premises, nor shall LESSOR, its City Council, boards and
commissions, officers, agents, servants and employees be liable
for injury to the person of LESSEE, LESSEE'S employees, agents or
contractors, whether such damage or injury is caused by or
results from fire, steam, electricity, gas, water or rain, or
from the breakage, leakage, obstruction or other defects of
pipes, sprinklers, wires, appliances, plumbing, air conditioning
or lighting fixtures, crime, or from any other cause, whether the
said damage or injury results of the building of which the
Premises are a part, or from other sources or places and
regardless of whether the cause of such damage or injury or the
means of repairing the same is inaccessible to LESSEE. LESSOR,
its City Council, boards and commissions, officers, agents,
servants and employees shall not be liable for any damages
arising from or any act or neglect of any other LESSEE, if any,
of the building in which the Premises are located.
17. LIENS: LESSEE shall not permit to be enforced against
said Premises, or any part thereof, any mechanics',
materialmen's, contractors' or other liens arising from, or any
claims for damages growing out of, any work of repair or
-24-
0 0
alteration as herein authorized or otherwise arising (except from
the actions of LESSOR), and LESSEE shall pay or cause to be paid
all of said liens and claims before any action is brought to
enforce the same against LESSOR or said Premises; and LESSEE
agrees to indemnify and hold LESSOR and said Premises free and
harmless from all liability for any and all such liens and claims
and all costs and expenses in connection therewith. LESSEE shall
give LESSOR no less than twenty (20) days' prior notice in
writing before commencing construction of any kind on the
Premises so that LESSOR may post notices of non - responsibility.
18. LESSOR PAYING CLAIMS: Should LESSEE fail to pay and
discharge, when due and payable, any tax or assessment, or any
premium or other charge in connection with any insurance policy
or policies which LESSEE is obligated to pay, or any lien or
claim for labor or material employed or used in, or any claim for
damages arising out of the repair, alterations, maintenance and
use of said Premises, as provided in this Lease, after ten (10)
days' written notice from LESSOR, then LESSOR may, at its option,
and without waiving or releasing LESSEE from any of LESSEE's
obligations hereunder, pay any such tax, assessment, lien, claim,
insurance premium or charge, or settle or discharge any action
therefor or satisfy any judgment thereon. All costs, expenses
and other sums, incurred or paid by LESSOR in connection
therewith, together with interest at the rate of ten percent
-25-
0 0
(10 %) per annum on such costs, expenses and sums from the date
incurred or paid by LESSOR, shall be deemed to be additional rent
hereunder and shall be paid by LESSEE with and at the same time
as the next installment of rent hereunder, and any default
therein shall constitute a breach of the covenants and conditions
of this Lease.
19. DEFAULTS: The occurrence of any one (1) or more of the
following events shall constitute a material default and breach
of this Lease by LESSEE.
A. The vacating or abandonment of the Premises by
LESSEE.
B. The failure by LESSEE to make any payment of rent
required to be made by LESSEE hereunder, as and when due, where
such failure shall continue for a period of three (3) business
days after written notice thereof from LESSOR to LESSEE.
C. Except as specified in Subsection B, the failure by
LESSEE to observe or perform any of the covenants, conditions or
provisions of this Lease to be observed or performed by LESSEE
where such failure shall continue for a period of ten (10) days
after written notice hereon from LESSOR to LESSEE; provided,
however, that if the nature of LESSEE'S default is such that more
than ten (10) days are reasonable required for its cure, then
LESSEE shall not be deemed to be in default if LESSEE commenced
-26-
actions, causes of action, obligations, costs, damages, losses,
claims, liabilities and demands of any nature whatsoever,
including reasonable attorneys' fees, regardless of the merit or
outcome of any such claim or suit, arising from or in any manner
connected to the use or possession of the Premises by LESSEE
conducted pursuant to this Lease.
LESSEE shall indemnify and hold harmless LESSOR, its City
Council, boards and commissions, officers, agents, servants and
employees from and against any and all actions, causes of action,
obligations, costs, damages, losses, claims, liabilities and
demands of any nature whatsoever, including reasonable attorneys'
fees, accruing or resulting to any and all persons, firms, or
corporations furnishing or supplying work, services, materials,
equipment or supplies in connection with services, materials,
equipment or supplies in connection with services or work
conducted or performed pursuant to this Lease by LESSEE and
arising out of such activities or work, and from any and all
claims and losses whatsoever, including reasonable attorneys'
fees, accruing or resulting to any person, firm or corporation
for damage, injury or death arising out of LESSEE'S use and
possession of the Premises.
Without limiting the generality of the foregoing, LESSEE
hereby agrees that the LESSOR, its City Council, boards and
commissions, officers, agents, servants and employees, shall not
-23-
be liable for injury to LESSEE'S business or any loss of income
therefrom or for damage to the goods, wares, merchandise,
improvements or other property of LESSEE, LESSEE'S employees,
invitees, customers, or any other person in or about the
Premises, nor shall LESSOR, its City Council, boards and
commissions, officers, agents, servants and employees be liable
for injury to the person of LESSEE, LESSEE'S employees, agents or
contractors, whether such damage or injury is caused by or
results from fire, steam, electricity, gas, water or rain, or
from the breakage, leakage, obstruction or other defects of
pipes, sprinklers, wires, appliances, plumbing, air conditioning
or lighting fixtures, crime, or from any other cause, whether the
said damage or injury results of the building of which the
Premises are a part, or from other sources or places and
regardless of whether the cause of such damage or injury or the
means of repairing the same is inaccessible to LESSEE. LESSOR,
its City Council, boards and commissions, officers, agents,
servants and employees shall not be liable for any damages
arising from or any act or neglect of any other LESSEE, if any,
of the building in which the Premises are located.
17. LIENS: LESSEE shall not permit to be enforced against
said Premises, or any part thereof, any mechanics',
materialmen's, contractors' or other liens arising from, or any
claims for damages growing out of, any work of repair or
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• 0
alteration as herein authorized or otherwise arising (except from
the actions of LESSOR), and LESSEE shall pay or cause to be paid
all of said liens and claims before any action is brought to
enforce the same against LESSOR or said Premises; and LESSEE
agrees to indemnify and hold LESSOR and said Premises free and
harmless from all liability for any and all such liens and claims
and all costs and expenses in connection therewith. LESSEE shall
give LESSOR no less than twenty (20) days' prior notice in
writing before commencing construction of any kind on the
Premises so that LESSOR may post notices of non - responsibility.
18. LESSOR PAYING CLAIMS: Should LESSEE fail to pay and
discharge, when due and payable, any tax or assessment, or any
premium or other charge in connection with any insurance policy
or policies which LESSEE is obligated to pay, or any lien or
claim for labor or material employed or used in, or any claim for
damages arising out of the repair, alterations, maintenance and
use of said Premises, as provided in this Lease, after ten (10)
days' written notice from LESSOR, then LESSOR may, at its option,
and without waiving or releasing LESSEE from any of LESSEE's
obligations hereunder, pay any such tax, assessment, lien, claim,
insurance premium or charge, or settle or discharge any action
therefor or satisfy any judgment thereon. All costs, expenses
and other sums, incurred or paid by LESSOR in connection
therewith, together with interest at the rate of ten percent
-25-
(10 %) per annum on such costs, expenses and sums from the date
incurred or paid by LESSOR, shall be deemed to be additional rent
hereunder and shall be paid by LESSEE with and at the same time
as the next installment of rent hereunder, and any default
therein shall constitute a breach of the covenants and conditions
of this Lease.
19. DEFAULTS: The occurrence of any one (1) or more of the
following events shall constitute a material default and breach
of this Lease by LESSEE.
A. The vacating or abandonment of the Premises by
LESSEE.
B. The failure by LESSEE to make any payment of rent
required to be made by LESSEE hereunder, as and when due, where
such failure shall continue for a period of three (3) business
days after written notice thereof from LESSOR to LESSEE.
C. Except as specified in Subsection B, the failure by
LESSEE to observe or perform any of the covenants, conditions or
provisions of this Lease to be observed or performed by LESSEE
where such failure shall continue for a period of ten (10) days
after written notice hereon from LESSOR to LESSEE; provided,
however, that if the nature of LESSEE'S default is such that more
than ten (10) days are reasonable required for its cure, then
LESSEE shall not be deemed to be in default if LESSEE commenced
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0 0
such cure within said ten (10) day period and thereafter
diligently prosecutes such cure to completion.
20. TERMINATION: LESSEE shall have the option to terminate
this Lease upon adjustment of the yearly rent and monthly payment
under Section 3a of this Lease by giving sixty (60) days' prior
written notice to LESSOR as provided herein. Upon termination of
this Lease, LESSEE shall pay to LESSOR that portion of the rent
that is due and unpaid prior to the effective date of
termination.
21. ATTORNEY'S FEES: LESSEE shall pay to LESSOR such
amounts for resonable attorney's fees incurred by LESSOR in
connection with LESSEE'S breach or default under this Lease. In
addition, in the event that any action shall be instituted by
either of the parties hereto for the enforcement of any of its
rights or remedies in and under this Lease, the party in whose
favor judgment shall be rendered therein shall be entitled to
recover from the other party all costs incurred by said
prevailing party in said action, including reasonable attorney's
fees to be fixed by the court therein.
22. REMOVAL: Upon the expiration of the term of this Lease,
or upon any earlier termination of this Lease, LESSEE shall quit
and surrender possession of the said Premises to LESSOR in the
same condition as upon delivery of possession to LESSEE
hereunder, reasonable wear and tear and damage by fire, acts of
-27-
God, the elements and unavoidable casualty excepted. Before
surrendering possession of said Premises as aforesaid, LESSEE
shall without expense to LESSOR, remove or cause to be removed
from said Premises all signs, furnishings, equipment, trade
fixtures, merchandise and other personal property installed or
placed therein, and all debris and rubbish, and LESSEE shall
repair all damage to said Premises resulting from such removal.
If LESSEE fails to remove any of its signs, furnishings,
equipment, trade fixtures, merchandise or other personal property
within ten (10) days after the expiration or termination of this
Lease, then LESSEE may, at its sole option (a) treat LESSEE as a
holdover in which event the provisions of Paragraph 24 shall
apply; or (b) deem any or all of such items abandoned and the
sole property of LESSOR; or (c) remove any or all of such items
and dispose of same in any manner or store same for LESSEE, in
which event the expense of such disposition or storage shall be
borne by LESSEE and shall be immediately due and payble.
23. PAYMENTS AND NOTICES: All rents and other sums payable
by LESSEE to LESSOR hereunder shall be paid to LESSOR at its
business office at CITY OF NEWPORT BEACH, FINANCE DEPARTMENT,
3300 NEWPORT BOULEVARD, P.O. BOX 1768 NEWPORT BEACH, CALIFORNIA,
92658 -8915, or at such other place as LESSOR may hereafter
designate in writing.
-28-
Any notice to be given or other document to be delivered
by either party to the other hereunder may be delivered in person
to an officer of LESSOR or to LESSEE or any officer of LESSEE, if
a corporation, or may be deposited in the United States mail in
Orange County, State of California, duly registered or certified,
postage prepaid, and addressed to LESSOR at its said business
office and to LESSEE at the addresses designated below. Either
party hereto may from time to time, by written notice to the
other, served in the manner herein provided, designate a
different address. If any notice or other document is sent by
mail, as aforesaid, the same shall be deemed served or delivered
twenty -four (24) hours after the mailing thereof. If more than
one (1) lessee is named under this Lease, service of any notice
upon any one of said lessees shall be deemed as service upon all
of said lessees.
Address of LESSEE: THE GALLEY, 829 HARBOR ISLAND DRIVE,
NEWPORT BEACH, CALIFORNIA 92662.
24. EMINENT DOMAIN:
(a) Definition of Terms: The term "total taking" as
used in this Paragraph means the taking of the entire Premises
under the power of eminent domain or a taking of so much of said
Premises as to prevent or substantially impair the conduct of
LESSEE's business therein. The term "partial taking" means the
-29-
taking of a portion only of said Premises which does not
constitute a total taking as above defined.
(b) Total Taking: If during the term hereof there
shall be a total taking by public authority under the power of
eminent domain, then the leasehold estate of LESSEE in and to
said Premises shall cease and terminate as of the date actual
physical possession thereof shall be so taken.
(c) Partial Taking: If during said term there shall be
a partial taking of said Premises, this Lease shall terminate as
to the portion of said Premises taken upon the date upon which
actual possession of said portion of said Premises is taken
pursuant to said eminent domain proceedings, but said Lease shall
continue in force and effect as to the remainder of said
Premises. The yearly rent and monthly payment by LESSEE for the
balance of said term shall be abated in the ratio that the square
footage of floor area of said Premises taken bears to the total
floor area of said Premises at the time of such taking.
(d) Allocation of Award: All compensation and damages
awarded for the taking of said Premises or any portion or
portions thereof, shall, except as otherwise herein provided,
belong to and be the sole property of LESSOR. LESSEE shall be
entitled to any award based upon value of its leasehold hereunder
and LESSEE shall be entitled to any award that may be made for
the taking of or injury to on account of any cost or loss LESSEE
-30-
may sustain in the removal of LESSEE's fixtures, equipment and
furnishings.
(e) Effect of Termination: If this Lease is
terminated, in whole or in part, pursuant to any of the
provisions of this Paragraph, all rentals and other charges
payable by LESSEE to LESSOR hereunder and attributable to the
Premises taken, shall be paid up to the date upon which actual
physical possession shall be taken by the condemnor, and the
parties shall thereupon be released from all further liability in
relation thereto.
(f) Voluntary Sales: A voluntary sale by LESSOR to any
public body or agency having the power of eminent domain, either
under threat of condemnation or while condemnation proceedings
are pending, shall be deemed to be a taking under the power of
eminent domain for the purposes of this Paragraph.
25. HOLDING OVER: This Lease shall terminate and become
null and void without further notice upon the expiration of the
term herein specified, and any holding over by LESSEE after such
expiration shall not constitute a renewal hereof or give LESSEE
any rights under this Lease, except as otherwise herein provided,
LESSOR and LESSEE understand and agree that this Lease cannot be
renewed, extended or in any manner modified except in writing
signed by both parties hereto; provided, however, that nothing in
this Paragraph shall be construed to alter or impair the
-31-
provisions of Paragraph 21 hereof. If LESSEE shall hold over for
any period after the expiration of said term, LESSOR may, at its
option, exercised by written notice to LESSEE, treat LESSEE as a
tenant from month -to -month commencing on the first day following
the expiration of this Lease and subject to the terms and
conditions herein contained except that the monthly payments,
which shall be payable in advance, shall be one hundred fifty
percent (150 %) of said monthly payments applicable at the date of
expiration. If LESSEE fails to surrender the Premises upon the
expiration of this Lease despite demand to do so by LESSOR,
LESSEE shall indemnify and hold LESSOR harmless from all loss or
liability, including without limitation, any claims made by any
succeeding LESSEE founded on or resulting from such failure to
surrender.
26. ACCEPTANCE OF PREMISES BY LESSEE: By taking possession
of the said Premises, LESSEE accepts the improvements in the
condition in which they may then be, and waives any right or
claim against LESSOR arising out of the condition of the said
Premises, including the improvements thereon, the appurtenances
thereto, and the equipment thereof.
27. SCOPE OF THE AGREEMENT: This Lease is and shall be
considered to be the only agreement between the parties hereto.
All negotiations and oral agreements acceptable to both parties
are included herein.
-32-
28. AMENDMENT OF LEASE: No amendment or other ratification
of this Lease shall be effective unless in a writing signed by
all parties to this Lease.
29. CONSTRUCTION AND EFFECT: Time is of the essence of this
Lease. The Paragraph headings herein are used only for the
purpose of convenience and shall not be deemed to contain or
limit the subject matter of the Paragraphs hereof, nor to be
considered in the construction thereof. Each and all of the
obligations, convenants, conditions and restrictions of this
Lease shall insure to the benefit of and be binding upon and
enforceable against, as the case may require, the successors and
assigns of LESSOR, and subject to the restrictions of Paragraph
14 hereof, any authorized assignee, transferee, sublessee and
other successor in interest of LESSEE.
In this Lease the neuter gender includes the feminine and
masculine and the singular number includes the plural wherever
the context so requires. If more than one LESSEE is named above,
the obligation of each of such LESSEES hereunder shall be and is
joint and several.
-33-
4 '
IN WITNESS WHEREOF, each of the parties hereto has
caused this Lease to be executed on the day and year first above
written.
APPROVED AS TO FORM:
e �
CM ATTORNEY
ATTEST:
'1
CITY CLERK
-34-
LESSOR:
Cl
a
EWO
LESSEE:
EDWARD HOFFMAN FLACH and
MYRTLE ELIZABETH FLACH,
TRUSTEES OF THE FLACH FAMILY
TRUST, U /T /A DATED 10/18/82,
DOING BUSINESS AS THE GALLEY
EDWARD gHOFjjjjFffffR N,FLL/ACH, TRUSTEE Aw
LE E I ETH FLACH,
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