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HomeMy WebLinkAbout10/3/2001 - STAFF REPORTS (15) 7) DATE: October 3, 2001 TO: City Council FROM: Director of Public Works/City Engineer NEW LEASE OF REAL PROPERTY AGREEMENT BETWEEN CITY OF PALM SPRINGS AND BOYS' AND GIRLS' CLUB OF PALM SPRINGS, INC. RECOMMENDATION: That the City Council approve the attached resolution approving the new Lease of Real Property Agreement ('Agreement') between the City of Palm Springs and Boys' and Girls' Club of Palm Springs, Inc. SUMMARY: The Boys' and Girls' Club desires to construct a new structure to serve as a teen center. The additional building extends over the existing eastern most lease line. The proposed lease agreement revises the legal description from the existing 1990 agreement to include the land for the addition. BACKGROUND: City Council approved a Lease Agreement with the Boys' Club in 1958. The lease area was enlarged in 1961 for swimming pool purposes, in 1965 for recreation useage, and reduced in 1990 for improvements on City land. The Boys' and Girls' Club now desires to construct an additional building to serve as a teen center thereby requiring that an additional adjacent parcel be added to the current leasehold interests. The Parks and Recreation Commission reviewed the request for the proposed expansion and lease line adjustment at their September 20, 2000 meeting and approved it. Architectural approval was given by the Planning Commission on September 27, 2001. Sanborn A & E prepared the legal description and plat shown as Exhibit"A" and "B" in the attached 'Agreement'. Staff recommends that the Agreement be approved. DAVID J. BARAKIAN Director of Public W s/City Engineer APPROVED: City Manager ATTACHMENTS: 1. Lease Agreement 2. Resolution LEASE OF REAL PROPERTY BETWEEN CITY OF PALM SPRINGS, CALIFORNIA AND BOYS'AND GIRLS' CLUB OF PALM SPRINGS, INC. WHEREAS, on January 27, 1958, the City of Palm Springs leased a portion of the former Polo Grounds, now known as Sunrise Park, to the Boys Club of Palm Springs, Inc. for 25 years with an option to renew for 25 years; and WHEREAS, on December 5, 1961, additional land adjacent to the parcel leased above was leased to the Boys' Club to locate swimming pool equipment; and WHEREAS, on June 7, 1965, an additional adjacent parcel was leased to the Boys' Club for 10 years for general recreation usage; and WHEREAS, on June 20, 1990, the City of Palm Springs desired to make improvements on City land, including portions of the land leased to the Boys' Club and the Boys' Club had no need for those portions of the leasehold interests on which City improvements are planned; and WHEREAS, the Boys & Girls Club desires to put an addition onto an existing building thereby requiring that an additional adjacent parcel be added to the current leasehold interests. NOW THEREFORE, the Boys & Girls Club of Palm Springs, Inc., hereinafter referred to as "Boys' Club, " and the City of Palm Springs, hereinafter referred to as "City," agree as follows: 1. The leases between the Boys' Club and the City dated January 27, 1958, December 5, 1961, June 7, 1965 and June 20, 1990 are hereby actually cancelled. 2. The City hereby leases to the Boys' Club the real property hereinafter described under the following terms and conditions: a. PREMISES. City leases to Boys' Club a certain parcel of real property situated at 450 South Sunrise Way in the City of Palm Springs, County of Riverside, State of California. b. TERM. The term of this lease shall be for twenty-five (25) years with the option of a one-time renewal (twenty-five years) commencing on the day this Agreement is fully executed by all parties and terminating on the completion of the first twenty-five year time period. The time frame for each of the subsequent years shall be a similar time period as agreed to by the parties hereto. C. RENT. The Boys' Club agrees to pay to the City as rental for said premises the sum of One Dollar (51.00) per year, first payment / 74 BOYS' CLUB OF PALM SPRINGS, INC. LEASE AGREEMENT PAGE 2 payable on the date of execution of this lease agreement, and thereafter on the 15th day of January of each succeeding year. d. USE. The purpose of this lease is to provide for the use of said premises by Boys' Club for operating thereon a building and other facilities for use as a Boys' Club to promote the physical, mental and moral welfare of boys of the City of Palm Springs. No activities shall be conducted upon the leasehold by any minor at any time without adult supervision, said supervision being in accordance with rules and regulations of the Boys' Club of Palm Springs. e. MAINTENANCE. The facilities on the leasehold site shall be continually maintained by the Boys' Club at standards that will maintain the health and safety of the users of the facilities. In addition, the exterior portions of the building, and the appurtenances thereto, shall be maintained so as to show no signs of dilapidation. The Boys' Club shall immediately paint or make repairs in accordance with the written order of the City Manager and within the time prescribed by the City Manager. The Boys' Club reserves the right to appeal the written order given by the City Manager and to the City Council. The City Councils' finding shall be final. It is expressly understood that the City shall in no way be expected to contribute to the construction or other maintenance of the building facilities or appurtenances thereto. The ground on the west side of the building and lying north of the south curb line of the parking lot on the north side of the building within the leasehold premises will be maintained by the City. All remaining grounds within the leasehold premises will be maintained by the Boys' Club; in addition, the cost of operation of the facilities is solely that of the Boys' Club. f. HOLD HARMLESS. Boys' Club agrees to indenmify, defend and hold City harmless from and against all liability for injuries to persons or damage to property caused by Boys' Club's negligent use or occupancy of the premises; provided, however, that Boys' Club shall not be liable for any injury, damage or loss occasioned by the negligence of City, its agents or employees; and provided further that City shall give to Boys' Club prompt and l�,� 3 BOYS' CLUB OF PALM SPRINGS, INC. LEASE AGREEMENT PAGE 3 timely notice of any claim made or suit instituted which in any way directly or indirectly, contingently or otherwise, effects or might effect Boys' Club, and Boys' Club shall have the right to compromise and defend the same to the extent of its own interest. g. INSURANCE. Boys' Club shall maintain public liability insurance during the entire term of this lease covering the City as additional named insured. The limits of said policy shall be One Million Dollars ($1,000,000.00) for each person and each accident with a total aggregate coverage of the Million Dollars ($1,000,000.00) for each accident. Property damage liability insurance shall be provided in the amount of at least One Million Dollars ($1,000,000.00) for any one accident. All of such insurance shall be primary insurance and shall name the City of Palm Springs as an additional insured. If the operation under this Agreement results in an increased or decreased risk in the opinion of the City Manager, then Boys' Club agrees that the minimum limits hereinabove designated shall be changed accordingly upon request by the City Manager; provided, however, that the Boys' Club may appeal to the City Council within 10 days after any increase is requested and such requirement for increased coverage shall be subject to determination by the City Council. Boys' Club agrees that provisions of this paragraph as to maintenance of insurance shall not be construed as limiting in any way the extent to which the Boys' Club may be held responsible for the payment of damages to persons or property resulting from Boys' Chub activities, the activities of its lessees or the activities of any person or persons for which Boy's Club is otherwise responsible. h. NOTICE TO CITY. INSURANCE COVERAGE CHANGE. The terms of the insurance policy or policies issued to provide the above insurance coverage shall provide that said insurance may not be amended or cancelled by the carrier for non-payment of premiums or otherwise without thirty (30) days prior writtennotice of amendment or cancellation to the City. In the event the said insurance is cancelled, the Boys' Club shall, prior to the cancellation date, submit to the City Clerk new evidence of insurance in the amounts heretofore established. /�� BOYS' CLUB OF PALM SPRINGS, INC. LEASE AGREEMENT PAGE 4 i. EVIDENCE OF INSURANCE. A Certificate of Insurance, or an appropriate insurance binder, evidencing the above insurance coverage with a company acceptable to the City' s Risk Management Officer shall be submitted to the City prior to execution of this agreement on behalf of the City. j. THE BOYS' CLUB -AN INDEPENDENT CONTRACTOR. It is widerstood and agreed that the Boys' Club is, and at all time shall be, an independent contractor and nothing contained herein shall be construed as making the Boys ' Club, or any individual whose compensation for services is paid by the Boys' Club, an agent or employee of the City, or authorizing the Boys' Club to create or assume any obligation or liability for or on behalf of the City. k. RIGHT OF ENTRY. The premises shall at all reasonable times be open to proper governmental authorities and agents or employees of the City for inspection. I. ASSIGNMENT AND SUBLETTING. Boys' Club shall not assign this lease or any part thereof nor sublet said premises or any part thereof without the written consent of City first had and obtained. in. COMPLIANCE WITH LAWS AND PECULATIONS. Boys' Club agrees to maintain and operate the premises in compliance with all municipal, county and state laws applicable thereto. n. TERMINATION BY CITY. Time is the essence of this lease and in the event that the Boys' Chub fails to maintain or operate the premises thereon in strict accordance with the provisions of this lease, the said failure shall be cause for the City to terminate the lease and to take immediate possession of the building, facilities and appurtenances thereto. Prior to termination, the City shall first provide the Boys' Club with notice in writing stating the defects or omissions and giving Boys' Club thirty (30) days in which to commence to correct said defects or omissions. If such defects or omissions are not corrected within this timeframe, lease shall automatically terminate. Upon termination for cause, or at the expiration of this lease, the City shall be empowered to take immediate possession of the premises and remove all unauthorized persons therefrom. It is ?# BOYS' CLUB OF PALM SPRINGS, INC. LEASE AGREEMENT PAGE 5 expressly understood that upon termination the premises and improvements shall become the property of the City without payment to the Boys' Club. MADE AND ENTERED INTO by the parties hereto this 3rd day of October, 2001. ATTEST: CITY OF PALM SPRINGS By: City Clerk City Manager REVIEWED & APPROVED BOYS' AND GIRLS' CLUB OF PALM SPRINGS, INC. By: President By: Executive Director i7.9d EXHIBIT"A" LEASE ADDITION BOYS &GIRLS CLUB THAT PORTION OF LOT 25, IN SECTION 13, TAS, RAE, S.B.B.BM., AS SHOWN ON MAP OF PALM VALLEY COLONY LANDS,ACCORDING TO MAP THEREOF RECORDED IN BOOK 14, PAGE 652 OF MAPS, RECORDS OF SAN DIEGO COUNTY, CALIFORNIA. BEING IN THE CITY OF PALM SPRINGS, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHWEST CORNER OF SAID SECTION 13; THENCE NORTH 0003'45" EAST,ALONG THE WESTERLY LINE OF SAID SECTION 13, A DISTANCE OF 427.00 FEET; THENCE SOUTH 89056'15" EAST, A DISTANCE OF 50.00 FEET TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING SOUTH 89056'15" EAST, A DISTANCE OF 28.20 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE NORTHERLY, HAVING A RADIUS OF 100.00 FEET; THENCE EASTERLY, ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 17003'45", A DISTANCE OF 29.78 FEET; THENCE TANGENT TO SAID CURVE NORTH 73000'00" EAST, A DISTANCE OF 94.55 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE SOUTHERLY HAVING A RADIUS OF 52.00 FEET; THENCE NORTHEASTERLY, EASTERLY AND SOUTHEASTERLY, ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 50000'00", A DISTANCE OF 45.38 FEET; THENCE TANGENT TO SAID CURVE SOUTH 57000'00" EAST,A DISTANCE OF 13.24 FEET; THENCE SOUTH 89056'15" EAST A DISTANCE OF 97.02 FEET; THENCE SOUTH 00003'45"WEST A DISTANCE OF 128.31 FEET; THENCE NORTH 89056'15"WEST A DISTANCE OF 80.66 FEET; THENCE SOUTH 00003'45"WEST A DISTANCE OF 73.71 FEET; THENCE NORTH 89056'15"WEST, A DISTANCE OF 218.93 FEET TO A POINT ON A LINE THAT IS PARALLEL WITH AND 50.00 FEET EASTERLY OF THE WESTERLY LINE OF SAID SECTION 13; THENCE NORTH 0003'45" EAST, ALONG SAID PARALLEL LINE, A DISTANCE OF 183.15 FEET TO THE TRUE POINT OF BEGINNING. PREPARED BY s1ONAL SANBORN A/E, INC. ��5. �o ¢¢O � L.SA Nep d+G N� JOHN L. SANBORN PLS 4146 v W.O.00-182 08/27/01 OF�A L I Fn.�i��P f EXHIBI T "B" SCALE: 1" - 60' �— DATA DELTA/BEARING RADIUS LEN./DIST. TANGENT 1 N 57000'00"W 13.24 z 50000,00" 52.00 45.38 24.25 3 17603'45" 100.00 29.78 15.00 4 N 89056'15"W 28.20 N 00003'45"E 128.31 w 3 O N Onf 10 N � z + N 00°03'45"E z 73.71 rn PALM VALLEY COLONY LANDS M.B. 14/652 S.D. CO. 2 LOT 25 3 W $, 54,109.47 S.F. " cb 1.242 AC. °rn� m z .r ffi apL L AND Sp L. S4 9AF a L.S. 4146 N 00003'45"E 183.15 of w EXP. 6/30/04 _ Q R III oI � I S.W. COR T � SEC. 13 O CALI 9 I N 00°03'45"E 427.00 13 24 F F SUNRISE WAY 14 23 CITY OF PALM SPRINGS ENGINEERING DEPARTMENT LEASE PLAT JSANBORN AIE INC. 2 0/ THAT PORTION OF LOT 25, IN SECTION 13, T.4S, HN L. SANBORN DATE R.4F_, S.B.B.&M., AS SHOWN ON MAP OF PALM P.L.S. 4146 VALLEY COLONY LANDS, ACCORDING TO MAP DESIGN BY SCALE FILE N0. THEREOF RECORDED IN BOOK 14, PAGE 652 OF D.G.H. 1"--60' MAPS, RECORDS OF SAN DIEGO COUNTY, CALIFORNIA BEING IN THE CITY OF PALM SPRINGS, COUNTY OF CHECKED::: SHEET NO. RIVERSIDE, STATE OF CALIFORNIA. J.L. 1 OF 1 00-182 RESOLUTION NO. OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING A LEASE OF REAL PROPERTY AGREEMENT BETWEEN CITY OF PALM SPRINGS AND BOYS' AND GIRLS' CLUB OF PALM SPRINGS, INC. LOCATED AT 450 SUNRISE WAY SOUTH, O ZONE, SECTION 13-4-4. WHEREAS, the Boys' and Girls' Club of Palm Springs desires to construct a new structure to serve as a teen center thereby requiring that an additional adjacent parcel be added to the current leasehold interests; and WHEREAS, at the their meeting of September 20, 2000, the Parks and Recreation Commission reviewed the request for the proposed expansion and lease line adjustment and approved it; and WHEREAS, the City Council is in agreement that the City of Palm Springs should grant the Lease of Real Property. NOW THEREFORE BE IT RESOLVED that the City Council of the City of Palm Springs, California, does hereby approve the Lease of Real Property incorporating an additional parcel of land into that parcel leased to the Boys' and Girls' Club of Palm Springs, Inc. ADOPTED THIS day of 2001. AYES: NOES: ABSENT: ATTEST: CITY OF PALM SPRINGS, CALIFORNIA By City Clerk City Manager REVIEWED & APPROVED AS TO FORM: 740 f / "F �.,. LEASE OF REAL PROPERTY BETWEEN CITY OF PALM SPRINGS, CALIFORNIA AND BOYS' AND GIRLS' CLUB OF PALM SPRINGS, INC. WHEREAS, on January 27, 1958, the City of Palm Springs leased a portion of the former Polo Grounds, now known as Sunrise Park, to the Boys Club of Palm Springs, Inc. for 25 years with an option to renew for 25 years; and WHEREAS, on December 5, 1961, additional land adjacent to the parcel leased above was leased to the Boys' Club to locate swimming pool equipment; and WHEREAS, on June 7, 1965, an additional adjacent parcel was leased to the Boys' Club for 10 years for general recreation usage; and WHEREAS, on June 20, 1990, the City of Palm Springs desired to make improvements on City land, including portions of the land leased to the Boys' Club and the Boys' Club had no need for those portions of the leasehold interests on which City improvements are planned; and WHEREAS, the Boys & Girls Club desires to put an addition onto an existing building thereby requiring that an additional adjacent parcel be added to the current leasehold interests. NOW THEREFORE, the Boys & Girls Club of Palm Springs, Inc., hereinafter referred to as "Boys' Club, " and the City of Palm Springs, hereinafter referred to as "City," agree as follows: 1. The leases between the Boys' Club and the City dated January 27, 1958, December 5, 1961, June 7, 1965 and June 20, 1990 are hereby actually cancelled. 2. The City hereby leases to the Boys' Club the real property hereinafter described under the following terms and conditions: a. PREMISES. City leases to Boys' Club a certain parcel of real property situated at 450 South Sunrise Way in the City of Palm Springs, County of Riverside, State of California. The legal description of said parcel is attached hereto as Exhibit "A" and incorporated herein by this reference. b. TERM. The term of this lease shall be for fourteen (14) years with the option of a one-time renewal (twenty-five years) commencing on the day this Agreement is fully executed by all parties and terminating on the completion of the first twenty-five year time period. The time frame for each of the subsequent years shall be a similar time period as agreed to by the parties hereto. BOYS' CLUB OF PALM SPRINGS, INC. LEASE AGREEMENT PAGE 2 C. RENT. The Boys' Club agrees to pay to the City as rental for said premises the sum of One Dollar (S1.00) per year, first payment payable on the date of execution of this lease agreement, and thereafter on the 15th day of January of each succeeding year. d. USE. The purpose of this lease is to provide for the use of said premises by Boys' Club for operating thereon a building and other facilities for use as a Boys' Club to promote the physical, mental and moral welfare of boys of the City of Palm Springs. No activities shall be conducted upon the leasehold by any minor at any time without adult supervision, said supervision being in accordance with rules and regulations of the Boys' Club of Palm Springs. e. MAINTENANCE. The facilities on the leasehold site shall be continually maintained by the Boys' Club at standards that will maintain the health and safety of the users of the facilities. In addition, the exterior portions of the building, and the appurtenances thereto, shall be maintained so as to show no signs of dilapidation. The Boys' Club shall immediately paint or make repairs in accordance with the written order of the City Manager and within the time prescribed by the City Manager. The Boys' Club reserves the right to appeal the written order given by the City Manager and to the City Council. The City Councils' finding shall be final. It is expressly understood that the City shall in no way be expected to contribute to the construction or other maintenance of the building facilities or appurtenances thereto. The ground on the west side of the building and lying north of the south curb line of the parking lot on the north side of the building within the leasehold premises will be maintained by the City. All remaining grounds within the leasehold premises will be maintained by the Boys' Club; in addition, the cost of operation of the facilities is solely that of the Boys' Club. f. HOLD HARMLESS. Boys' Club agrees to indenmify, defend and hold City harmless from and against all liability for injuries to persons or damage to property caused by Boys' Club's negligent use or occupancy of the premises; provided, however, that Boys' Club shall not be liable for any injury, damage or loss occasioned BOYS' CLUB OF PALM SPRINGS, INC. LEASE AGREEMENT PAGE 3 by the negligence of City, its agents or employees; and provided further that City shall give to Boys' Club prompt and timely notice of any claim made or suit instituted which in any way directly or indirectly, contingently or otherwise, effects or might effect Boys' Club, and Boys' Club shall have the right to compromise and defend the same to the extent of its own interest. g. INSURANCE. Boys' Club shall rn ocure and maintain at its sole cost and expense, in a form and content satisfactory to City publie liability insurance during the entire term of this lease agreement including any extension thereof, the following policies of insurance; (a) Commercial General Liability Insurance. A policy of commercial general liability insurance written on a per occurance basis with a combined single limit of at least $2,000,000 bodily injury and property damage including coverages for contractual liability, personal injury, independent contractors, broadform property damage, products and completed operations. The General Liability Policy shall name to City of pam Springs as an additional insured in accordance with standard ISO additional insured endorsement from CG2010(1185) or equivalent language. (b) Worker's Compensation Insurance. A policy of worker's compensation insurance in such amount as will fully comply with the laws of the State of California and which will include $2,000,000 employer's liability. (c) Business Automobile Insurance. A policy of business automobile insurance written on a per occurance basis with a single limit liability in the amount of$2,000,000 bodily injury and property damage. covering the City as additional named insured. The limits of said policy shall be One Million Dollars ($1,000,000.00) for each person and each accident with a total aggregate coverage of the Million Dollars ($1,000,000.00) for each accident. Property damage liability insurance shall be provided in the amount of at least One Million Dollars ($1,000,000.00) for any one accident. All of such insurance shall be primary insurance mid shall name the City of Palm Springs as an additional insured. If the operation under this Agreement results in an increased or decreased risk in the opinion of the City Manager, then Boys' Club agrees that the minimum limits hcrcinabove designated shall be changed accordingly upon request by the City Manager; provided, however, that the Boys' Club may appeal to the City Council within 10 days after any increase is requested and such requirement for increased coverage shall be subject to determination by the City Council. Boys' Club agrees that provisions of this paragraph as to maintenance of insurance shall not be construed as limiting in any way the extent to which the Boys' Club may be held responsible for the payment of damages to persons or property resulting from Boys' Club activities, the activities of its lessees or the activities of any person or persons for which Boy's Club is otherwise responsible. All of the above policies of insurance shall be primary insurance and shall name the City, its officers, employees and agents as additional insureds. The insurer shall waive all rights of subrogation and contribution it may have against the City, its officers, employees and agents and their respective insurers. In the event any of said policies or insurance are canceled, the Contractor shall, prior to the cancellation date, submit new evidence of insurance in conformance with this Section 5.1 to the Contract Officer. No work or services under this Agreement shall commence until the Contractor has provided the City with Certificates of Insurance or appropriate insurance binders evidencing the above insurance coverages and said Certificates of Insurance or binders are approved by the City. The Contractor agrees that the provisions of this Section 5.1 shall not be construed as limiting in any way the extent to which the Contractor may be held responsible for the payment of damages to any persons or property resulting from the Contractor's activities or the activities of any person or persons for which the Contractor is otherwise responsible. In the event the Contractor subcontracts any portion of the work in compliance with Section 4.3 of this Agreement, the contract between the Contractor and such subcontractor shall require the subcontractor to maintain the same policies of insurance that the Contractor is required to maintain pursuant to this Section 5.1. BOYS' CLUB OF PALM SPRINGS, INC. LEASE AGREEMENT PAGE 4 h. NOTICE TO CITY, INSURANCE COVERAGE CHANGE. The terms of the insurance policy or policies issued to provide the above insurance coverage shall provide that said insurance may not be amended or cancelled by the carrier for non-payment of premiums or otherwise without thirty (30) days prior writtennotice of amendment or cancellation to the City. In the event the said insurance is cancelled,the Boys' Club shall,prior to the cancellation date, submit to the City Clerk new evidence of insurance in the amounts heretofore established. i. EVIDENCE OF INSURANCE. A Certificate of Insurance, or an appropriate insurance binder, evidencing the above insurance coverage with a company acceptable to the City' s Risk Management Officer shall be submitted to the City prior to execution of this agreement on behalf of the City. j. THE BOYS' CLUB -AN INDEPENDENT CONTRACTOR. It is understood and agreed that the Boys' Club is, and at all time shall be, an independent contractor and nothing contained herein shall be construed as making the Boys ' Club, or any individual whose compensation for services is paid by the Boys' Club, an agent or employee of the City, or authorizing the Boys' Club to create or assume any obligation or liability for or on behalf of the City. k. RIGHT OF ENTRY. The premises shall at all reasonable times be open to proper governmental authorities and agents or employees of the City for inspection. 1. ASSIGNMENT AND SUBLETTING. Boys' Club shall not assign this lease or any part thereof nor sublet said premises or any part thereof without the written consent of City first had and obtained. in. COMPLIANCE WITH LAWS AND PECULATIONS. Boys' Club agrees to maintain and operate the premises in compliance with all municipal, county and state laws applicable thereto. n. TERMINATION BY CITY. Time is the essence of this lease and in the event that the Boys' Club fails to maintain or operate the premises thereon in strict accordance with the provisions of this lease, the said failure shall be cause for the City to terminate the lease and to take immediate possession of the building, facilities and appurtenances thereto. Prior to termination, the City BOYS' CLUB OF PALM SPRINGS, INC. LEASE AGREEMENT PAGES shall first provide the Boys' Club with notice in writing stating the defects or omissions and giving Boys' Club thirty (30) days in which to commence to correct said defects or omissions. If such defects or omissions are not corrected within this timeframe, lease shall automatically terminate. Upon termination for cause, or at the expiration of this lease, the City shall be empowered to take immediate possession of the premises and remove all unauthorized persons therefrom. It is expressly understood that upon termination the premises and improvements shall become the property of the City without payment to the Boys' Club. o. NONDISCRIMIINATION. Lessee covenants for itself, it's heirs, executors, administrators, and defines, and all persons claiming wider or through it, that this lease is made and accepted upon and subject to the condition that there shall be no discrimination against or segregation of any person or group of persons on the account of race, color, creed, religion, sex, age, national origin, ancestry, political affiliation, or physical handicap associated with the constriction, operation, and maintenance of the premises. MADE AND ENTERED INTO by the parties hereto this 3rd day of October, 2001. ATTEST: CITY OF PALM SPRINGS By: City Clerk City Manager REVIEWED & APPROVED BOYS' AND GIRLS' CLUB OF PALM SPRINGS, INC. By: President By: Executive Director