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HomeMy WebLinkAbout00159C - THEODORE HOLMQUIST CASA DEL CAMINO LEASE 1447 NPC PA6 • Theodore W. Holmquist, dba LEASE Casa del Camino, 1447 N. Palm CASA DEL CAMINO Canyon, PA6 AGREEiENT ;#159 Resolution 466, 4-1-87 THIS LEASE, dated June 1 1987, between Community Redevelopment Agency of the City of Palm Springs "CRA" (Lessor) , and THEODORE W. HOLMQUIST, doing business as Casa del Camino (Lessee) , is based upon the following; RECITALS OF FACT: A. Lessor is the owner of certain premises and improvements in the City of Palm Springs, County of Riverside, State of California, located at 1447 North Palm Canyon Drive, (which said premises are known as the Casa del Camino; ) and B. Lessee desires to lease said premises and improvements for the purpose of conducting therein a day and weekly hotel rental , and for no other purpose. AGREEMENT: Lessor, in consideration of the covenants herein contained hereby agrees to lease the building UPON THE FOLLOWING TERMS AND CONDITIONS: 1. TERM - This lease shall be for a term of four (4) years commencing on June 1, 1987, and terminating on May 31, 1991. 2. RENTAL - In return for making approximately $50,000 of improvements to the property, a rental fee of $35,000/year shall be charged to the Lessee for the term of this lease, payable on a monthly basis. 3. BUSINESS HOURS - Lessee will operate the property on a full time basis. 4. REIMBURSEMENT FOR WORK PERFORMED - The Lessor agrees to reimburse Lessee 20,000 to compensate for the amount of improvements made to the property and lost income for each year this Agreement is reduced from the four year term should it become necessary to redevelop the property earlier than anticipated. 5. RENEWAL - The Lessee may continue on a month to month basis after the term of this lease expires, if he so chooses, and shall submit to the Community Redevelopment Agency in writing at least ninety (90) days prior to the termination of the Agreement, a statement of intent to continue. Continuation of this Agreement shall be subject to the approval of the Community Redevelopment Agency and shall not be construed as an automatic right. 6. CONDUCT BUSINESS - Lessee agrees at all times to maintain and conduct lessee's business in a lawful manner and in strict compliance with and observance of all Government rules, regulations, ordinances and laws. Lessee will so conduct its business so as not to invalidate or increase the cost of any policy of insurance carried by Lessor on -the premises, improvements and equipment. 7. ASSIGNMENT AND SUBLETTING - The premises shall be used for no other purpose than as above specified without the written consent of Lessor, and Lessee shall not sublet the premises or any part thereof, nor assign nor hypothecate this lease nor any rights therein nor in the leasehold premises without such written consent being first obtained. Any sublet- ting, assignment or hypothecation without such written consent shall be void and shall be cause for cancellation of this lease by Lessor at its option. Consent to a sublease will not be unreasonably withheld. 8. ALTERATIONS - Lessee agrees to make approximately $50,000 in improvements to the property. All such alterations shall be made by Lessee at its own expense and Lessor shall be held harmless from any costs or liens as a result of such alterations or improvements. �f� /9 - 9. FIXTURES - Lessee shall furnish all fixtures, equipment and furniture necessary to conduct and operate its business except those specifically agreed to be provided by Lessor. Lessee 's fixtures, equipment and furni- ture shall not nor shall any part thereof be permanently affixed to the buildings or to the floors or walls of the demised premises. At any time prior to expiration or termination of this lease, Lessee may remove said fixtures, however, such removal shall not in any way damage the walls, floors, ceilings, doors or any other part of the demised premises belonging to the Lessor. Any injury to the premises caused by such removal shall be repaired by Lessee. 10. CONDITION OF PREMISES AND REPAIRS - The premises are accepted by Lessee in their present condition, and Lessee will at all times keep the interior and the premises neat, clean and in a sanitary condition. Lessee, at its expense, shall repair and maintain the mechanical equipment and shall maintain outside walls, roof and foundation in a reasonable condi- tion. Lessee, at its expense, shall make all other repairs and maintain the premises in a good repair as they now are or may be hereafter. 11. HOLD HARMLESS - Lessee agrees to indemnify, defend and save Community Redevelopment Agency and its agents and employees harmless from any and all liability, claims, damages or injuries to any person, including injury to Lessee' s employees and all claims which arise from or are connected with the negligent performance of or failure to perform the work or other obligations of this agreement, or are caused or claim to be caused by the negligent acts of Lessee, its agents or employees, and all expenses of investigating and defending against same; provided, however, that this indemnification and hold harmless shall not include any claim arising from the sole negligence or willful misconduct of the Agency, its agents or employees. 12. LIABILITY INSURANCE - During the entire term of this Agreement, Lessee agrees to procure and maintain public liability insurance at its sole expense to protect against loss from liability imposed by law for damages on account of bodily injury, including death therefrom, suffered or alleged to be suffered by any person or persons whomsoever, resulting directly or indirectly from any act or activities of Lessee, or any person acting for Lessee or under its control or direction, and also to protect against loss from liability imposed by law for damages to any property of any person caused directly or indirectly by or from acts or activities of Lessee, or any person acting for Lessee, or under its control or direction. Such public liability and property damage insurance shall also provide for and protect the City against incurring any legal cost in defending claims for alleged loss. Such public liability and property damage insurance shall be maintained in full force and effect throughout the term of the Agreement and any extension thereof in the following minimum limits: Bodily Injury $ 500,000 each person $1,000,000 each occurrence $1,000,000 aggregate products & completed operations Property Damage $ 500,000 each occurrence $ 500,000 aggregate A combined single limit policy with aggregate limits in the amount of $1,000,000 will be considered equivalent to the required minimum limits. All of such insurance shall be primary insurance and shall name the Community Redevelopment Agency of 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 Executive Director, then Lessee agrees that 2 Itl ei/�� /'✓�� 7 the minimum limits hereinabove designated shall be changed accordingly upon request by the Executive Director; provided, however, that Lessee may appeal to the Redevelopment Agency within 10 days after any increase is requested and such requirement for increased coverage shall be subject to determination by the Redevelopment Agency. Lessee agrees that provisions of this paragraph as to maintenance of insurance shall not be construed as limiting in any way the extent to which Lessee may be held responsible for the payment of damages to persons or property resulting from Lessee's activities, or the activities of any person or persons for which Lessee is otherwise responsible. 13. WORKER'S COMPENSATION INSURANCE - Lessee shall procure and maintain, at its sole expense, Worker' s Compensation Insurance in such amount as will fully comply with the laws of the State of California and which shall indemnify, insure and provide legal defense for both Lessee and the CRA against any loss, claim, or damage arising from any injuries or occupational diseases happening to any worker employed by Lessee in the course of carrying out the within Agreement. 14. 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 CRA prior to execution of this Agreement on behalf of the CRA. 15. 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 written notice of amendments or cancellation to the City. In the event the said insurance is cancelled, Lessee shall , prior to the cancellation date, submit to the City Clerk new evidence of insurance in the amounts heretofore established. 16. FIRE & EXTENDED COVERAGE INSURANCE - Community Redevelopment Agency ✓ agrees to procure and maintain, at its sole expense, during the term of this Agreement, and any extension thereof, a policy of fire, extended coverage and vandalism insurance on all buildings, structures and permanent property, of Lessor's (CRA) , of an insurable nature located upon the lease premises. Lessee shall be financially responsible for the first $5,000, per loss. In the event of damage or loss, resulting from insured perils to the permanent structure and fixtures, payment of such loss shall be made to the Agency for the replacement or repair of damages, at the discretion of the Agency. Lessee ' s personal property shall be insured at its sole expense, the nature and extent of such insurance shall be determined by lessee. 17. TAXES - Lessee agrees to pay when due all business, personal property and possessory interest taxes levied against its personal property located on the demised premises and any taxes levied against Lessee by reason of the operation of its business on the demised premises. In no event shall Lessor be held liable for payment of such taxes. 18. AN INDEPENDENT CONTRACTOR - It is understood and agreed that the Lessee is, and at all times shall be, an independent contractor and nothing contained herein shall be construed as making the Lessee, or any indivi- dual whose compensation for services is paid by the Lessee, an agent 3 or employee of the CRA, or authorizing the Lessee to create or assume any obligation or liability for or on behalf of the CRA. 19. BANKRUPTCY - If any adjudication of bankruptcy or insolvency be rendered against Lessee, or if a receiver of the business or of the assets of Lessee be appointed, or if any writ of attachment of execution should be levied on any property of Lessee on the demised premises and not removed within forty-eight (48) hours, or if any sale or attempted sale of the leasehold interest hereby created should be made under or by virtue of any execution or other judicial process, Lessor may at its option immediately terminate this Lease, and no person shall have the right to use, possess or occupy the premises by virture thereof. 20. DEFAULT - Should default be made by Lessee in payment of the rent herein- above specified to be paid, or in performance of the agreements and covenants herein contained, it shall be lawful for Lessor at its option to declare the term of this Lease ended and to re-enter the demised premises or any part thereof, and to expel or remove Lessee or any other person who may be upon the demised premises, together with all goods and chattels found therein, and to repossess and enjoy said premises again as in its former estate. If at any time said term shall be ended at the election of Lessor as aforesaid, or in any other way, Lessee hereby covenants and agrees to surrender and deliver up the demised premises to Lessor immediately upon such termination. 21. ATTORNEY'S FEES - Lessee agrees to pay and discharge all costs and expenses including reasonable attorney's fees that may be incurred by Lessor in enforcing the covenants of this lease or the rights of Lessor in the demised premises. Lessee agrees at the termination of this Lease for any reason to quietly vacate and surrender the demised premises in good condition, reasonable wear and tear excepted. 22. HEIRS AND ASSIGNS - Each and all of the provisions hereof shall be binding upon and inure to the benefit of the successors and assigns of Lessor, the heirs and executors of Lessee, and assigns of Lessee if any assign- ments be made with the written consent of Lessor. 23. WAIVER BY LESSEE - Lessee waives all rights under Section 1942 of the Civil Code of the State of California, and agrees not to deduct the expenses of any repairs from rental payable to Lessor. 24. UTILITIES - Lessee agrees to pay promptly all continuing charges against the leased premises for public utilities, including but not limited to the electricity, waste disposal , gas, water and security alarm. Lessee agrees at its expense to keep the surrounding garden, walks and lawn in good condition. 25. POSSESSORY INTEREST - Lessee recognizes and understands that this Lease may create a possessory interest subject to property taxation and that the Lessee may be subject to the payment of property taxes levied on such interest. IN WITNESS WHEREOF the parties have executed this Lease on the day and year first above written. AC=RB'C:9r1'€::�n3`a T���� ��y�'`:�CJ`n �,..�" d:f;RIGH AGEMIC"V' UY h:E:Ie �� k G-/-�7 @EODORE W. HOLMQUIS� ATTEST: COMMUNITY REDEVELOPMENT AGENCY CITY OF PALM SPRINGS, CALIFORNIA �J r I_�ASSISTANT SECRETARY �a �z CHAI AN REVIEWED AND APPROVED: / izlj, 4