Loading...
HomeMy WebLinkAboutA6167 - THE ABBEY COMPANY JOB CREATION REIMBURSEMENT AGR JOB CREATION REIMBURSEMENT AGREEMENT (THE CITY OF PALM SPRINGS, CALIFORNIA AND THE ABBEY COMPANY) JOB CREATION AGREEMENT NO. Ablbl This Job Creation Reimbursement Agreement("Agreement') made and entered into this day of tkyQMbJ.,( , 2011 ("Effective Date"), between the City of Palm Springs, California, a municipal corporation ("City")and The Abbey Company, ("Developer"). City and Developer may be referred to individually as 'Party' or collectively as "Parties". RECITALS WHEREAS, the City has established a Job Creation Incentive Program ('Program") that provides economic incentives that are tied to job creation in particular zones and in certain industries, as adopted by City Council Resolution No. 19542 and Resolution No. 22693, and the Palm Springs Municipal Code Chapter 3.38, as provided in Exhibit A (collectively, the 'Program Policies"); and WHEREAS, the Program Policies set forth the requirements for participation in the Program, including the minimum number of jobs created and the terms of economic incentives; and WHEREAS, pursuant to the Program Policies, the City Council may by resolution implement the Program, including the definition and adoption of Program loan terms and the forgiveness of any repayment upon compliance of certain Program conditions; and WHEREAS, the City finds that the total economic benefit of the new jobs to the community exceeds the private benefit to the Developer under the terms of this Agreement and that there are no other reasonable alternative measures available to the Developer to finance the improvements or create the public benefit; and WHEREAS, the City Council finds that implementing a reimbursement-type agreement is consistent with Program loan terms and repayment guidelines and is in furtherance of the Program Policies; and WHEREAS, Developer is the owner of the commercial or industrial property located at 265 N. El Cielo, Palm Springs, California and as further identified by legal description in Exhibit B ('Property'); and WHEREAS, Developer subsequently improved, renovated orotherwise modified the Property for the purpose of locating Desert Medical Group ("Company'), an eligible company that has created full-time jobs within the City; and WHEREAS, Developer has paid building and development fees to the City ("Fees") and the 1 ORIGINAL BID AND/OR AGREEMENT building improvements subject to the permit fees have been fully approved and released for occupancy by the City; and WHEREAS, Developer now seeks reimbursement totaling Fifty Three Thousand Forty One Dollars ($53,041.00) over the course of five years, subject to the terms and conditions set forth in this Agreement. NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, City and Developer agree as follows: AGREEMENT 1. Term. This agreement shall terminate five (5) years from the Effective Date, unless extended by mutual written consent by both Parties. 2. Reimbursement. A. Proof of Program Compliance. Prior to the execution of this Agreement, Developer shall submit: (1)verification of Fees paid by Developer,which shall be attached as Exhibit C, (2)the completed initial Certificate of Continuing Program Compliance, as set forth in Exhibit D, and (3) a Memorandum of Lease verifying the existence of a minimum five year lease term,which shall be attached as Exhibit E. Developer shall also provide any other proof of compliance as may be requested by the City for the implementation of the Program. B. Verification. Upon the City's verification of Developer's compliance with the Program, the City shall pay the Developer an Annual Reimbursable Payment, as further defined in subsection 2(C) and subject to any offset as set forth in Section 3. Any Annual Reimbursable Payment due to the Developer shall be sent to the Developer at the written address on file with City. If Developer does not have a written address on file with City or does not otherwise claim the Annual Reimbursable Payment, City may retain the Annual Reimbursable Payment interest-free. C. Annual Reimbursable Payment. The Annual Reimbursable Payment is the Total Reimbursable Amount, divided into five (5) equal payments, that is to be paid by the City annually over the course of five years. The Total Reimbursable Amount is calculated by taking the Benefit(as determined by the City to be$1,000 per certified job created, located or retained at the Property) multiplied by the number of full time jobs created, relocated or retained at the Property, as further described and certified in Exhibit D to this Agreement. Notwithstanding the above,the Total Reimbursable Amount shall not exceed the total amount of Fees set forth in Exhibit C. 3. Continuinq Compliance. All Certificates of Continuing Program Compliance shall be due on the anniversary date of the initial certification and must be provided to City by the Developer or Company during each year of the five year reimbursement period. It is the responsibility of the Developer as lessor and beneficiary underthis Agreement to ensure the cooperation and compliance of the Company. A. Adiustment. If the number of jobs created, relocated or retained in any of the 2 subsequent annual Certificates of Continuing Program Compliance fall short of the original number of jobs identified in the initial Certificate of Program Compliance,the City may adjust the Annual Reimbursable Payment according to the decrease of the current number of jobs created, relocated or retained with the original number of jobs created, relocated or retained. B. Termination. If Developer or Company fails to provide the City with the initial Certificate of Program Compliance, or the annual Certificate of Continuing Program Compliance, when due, City's obligation to reimburse Developer under this Agreement may terminate and the City shall have no further obligation to the Developer. The City shall have complete and absolute discretion in determining whether to terminate the Agreement for noncompliance with this Section 3 or any other term of this Agreement. 4. No Representations or Liability. Developer understands that Developer is solely responsible for complying with the requirements in this Agreement. City shall have no duty to compel the Company to provide the employment information requested in this Agreement, and City shall not be liable for if Company fails to provide any information required under this Agreement. 5. Non-transferability. The right of Developer to receive any payment stated in this Agreement shall not be transferable to successors and assigns. In addition, if Developer transfers any or all of its interest in this Agreement, City's obligation under the terms of this Agreement shall terminate. 6. Amendment. The Parties mutually agree that this Agreement may be amended at any time by the mutual written consent of the Developer and City. 7. Integration. This Agreement and other documents expressly incorporated herein by reference contain the entire and exclusive understanding and agreement between the Parties relating to the matters contemplated hereby and all prior or contemporaneous negotiations, agreements, understandings, representations and statements, oral or written, are merged herein and shall be of no further force or effect. 8. Modifications. Any alteration, change or modification of or to this Agreement, in orderto become effective, shall be made bywritten instrument orendorsement thereon and in each such instance executed on behalf of each Party hereto. 9. Signing Authority. The persons executing this Agreement on behalf of the Parties hereto warrant that(i)such Party is duly organized and existing, (ii)they are duly authorized to execute and deliver this Agreement on behalf of said Party, (iii) by so executing this Agreement, such Party is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other Agreement to which said Party is bound. 10. Non-Liability of Officers and Employees of the City. No councilmember, officer or employee of the City shall be personally liable to Developer, or any successor-in-interest, in the event of any default or breach by City, or for any amount which may become due to Developer, or for any breach of any obligation of the terms of this Agreement. 3 11 Exhibits. All exhibits referenced in this Agreement are attached to this Agreement and are incorporated herein by reference. 12. Indemnification. To the fullest extent permitted by law, Developer agrees to protect, defend and hold harmless City and its Council members, officers, agents and employees from any and all claims, liabilities, expenses or damages of any nature, including attorneys' fees, for injury or death of any person, or damages of any nature, including interference with use of property, arising out of, or in any way connected with the negligence, recklessness and/or intentional wrongful conduct of Developer arising from this Agreement. Developer's responsibility to protect, defend and hold harmless may be offset to the degree caused by the sole negligence, recklessness and/or wrongful conduct of City,or any of its Council members, officers, agents or employees. [SIGNATURES ON FOLLOWING PAGE] a In witness whereof, the City and Developer have hereunto caused this Agreement to be executed the day and year first above mentioned. DEVELOPER: By: Qlwlej Coo Its: By: Its: CITY OF PALM SPRINGS, CALIFORNIA / APPROVED BY CITY COUIXIL David Ready, City ager hA MM ATTEST: ?mes��Tho�—mps�onCity Clerk APP ASS =: Dougl s C. Holland, City Attorney 5 Exhibit A (Resolution Nos. 19542 and 22693; Palm Springs Municipal Code Chapter 3.38) 6 RESOLUTIONNO. 19542 OF THE CITY OF PALM SPRINGS, CALIFORNIA, ESTABLISHING - - - ' GUIDELINES FOR A JOB CREATION INCENTIVE PROGRAM IN PALM SPRINGS, CHAPTER 3.38 OF THE MUNICIPAL CODE. WHEREAS,private sector jobs,especially those in the manufacturing sector,are an important component of a diverse and vibrant economic base for the City;and WlMtEAS,attracting businesses to the City and encouraging existing manufacturing and other major businesses to undertake expansion that results in a significant number of new jobs or other economic benefits to the City provides a community benefit- and WHEREAS,development fees charged by the City for new construction or expansion of existing manufacturing,retail,or other commercial facilities are designed to offset the impact such new facilities have on the City and its residents. Such fees can also act as a disincentive for such businesses to locate in the City or for existing businesses to expand facilities in the City,and WfiEREAS,it is in the public interest and consistent with the City charter to implement economic incentive programs that would diminish the disincentive caused by the ' application of development fees to the construction and/or expansion of new and/or existing manufacturing or other commercial facilities;and WHERBAS,such economic incentive programs serve a public purpose and provide for the general welfare of the community by securing a diverse economic base for the City, and WJMREAS,the City Council established a Job Creation Incentive Program by adopting Chapter 3.38 of the Palm Springs Municipal Code,to be implemented by one or more resolutions of the City Council. NOW THEREFORE BE IT RESOLVED by the City Council of the City of Palm Springs, that the following guidelines for the Job Creation Incentive Program,are adopted: Section 1. The purpose of the program is to attract to the City eligible businesses and encourage significant expansion of eligible businesses already located in the. City in order to promote the creation of jobs in the private sector and other direct or indirect economic benefits to the City by waiving or subsidizing development fees for such businesses based on the number of new full-time jobs brought to the community. Section 2. Funds for this program shall be appropriated annually in an amount deemed necessary. Section 3. Businesses eligible for participation in the program shall be located in the "A,""M I,""M-1_P,""M-2,""GM"and"C-2"zones of the City. Section 4. The job-creating businesses,as defied by classifications established by the 91 North American Industry Classification System(NMCS)of the U.S.. Bureau of the Census(adopted April 9, 1997), eligible for the Program, are: . Res. No. 19542 Page 2 Category NAICS 2-digit code Manufacturing 31-33 Information 51 Professional, Scientific,and Technical Services 54 Management of Companies and Enterprises 55 ' Administrative and Support,Waste Management and Remediation Services 56 The Council may amend the list of eligible NAICS categories from time to time. Section 5. Certain non-manufacturing businesses not listed by category in Section 4 may also be eligible for participation in the program provided they meet the other eligibility criteria for participation and provide other significant, measurable economic benefits such as,but not limited to,increased sales tax and property tax,to the city. Section 6. The minimum number of new full-time jobs created by an eligible manufacturing company shall be no less than one hundred(100). The number of jobs created by another type of benefit-producing business shall be one hundred(100)nominal jobs,equivalent to no fewer than forty(40) full-time positions. These employment levels shall be agreed to in writing and remain in effect during the period of the agreement between the City and the business. Section 7. The maximum amount of assistance(the earned incentive credit)any one , business may receive from this program shall not exceed$1,000 per job created,with the total amount of assistance not to exceed the total dollar amount of development fees assessed. The business is responsible for payment of all fees that may exceed theamount of earned incentive credit. Section S. The eligible development fees to which the Program assistance may be applied,and the order in which they are applied,are: I Plan Check 2 Building Permit 3 Planning Fee 4 SM1P Tax 5 Microfilm 6 Construction Tax 7 Construction Permit S Dbl.FeeakmwWsc. 9 Misc.Filing Fee 10 Sewer Inspection 11 Sewer Main ' 12 Sewer Agreement 13 Sewer Connection Fee 14 Drainage Fee 15 Permit Issuance 16 Public Arts Fee 17 School Fee is, TUMF Fee Res. No. 19542 Page 3 The total dollar amount of fees owed by the business will be calculated by the City,and the Job Creation Incentive program benefit, based on the amber of pledged jobs,shall be applied toward the total fee amount in the order noted in this Section. ' Section 9. Other criteria for participation in the program may be established by separate resolutions of the City Council. Section 10. Prior to approving assistance to an eligible business under this program,the City Council must make the findings described in Section 3.38.040 of the Palm Springs Municipal Code. Section 11. The program assistance shall be in the form of a loan to an eligible business,made on the following terms: A The City and the eligible business will have a written agreement detailing the responsibilities of both parties,including but not limited to the waiver of certain development fees by the City and the maintenance of minimum employment levels by the business for the period of the agreement,but no fewer than five years,and B. The City may include repayment provisions that may or may not require monetary repayment,depending on the business' performance meeting criteria defined in Section 6;such agreement shall be secured by a lie against the business and/or the property at which the business is located;and C. The company shall attest that the minimmn number of new jobs created in Palm Springs meets the criteria established in Section 6 of this resolution,and that the business would not have located or expanded in the City without the benefit;and D. The City shall attest that the total economic benefit to the community of the new jobs,by its own calculations,exceeds the fee revenue lost,and that the broad public benefit created by the program in terms of payroll and taxes paid exceeds the private benefit(the amount of fee waiver),and that there are no other reasonable alternative measures available to the business to finance the improvements or create the public benefit;and B. The agreement shall assure that the business will remain in the City for a minimum of five(5)years at the established employment level, or repay the City based on a straight-line amortization of the assistance-,the job commitment"amortizes"the City s loan to the business at a rate of 20'/a of the dollar amount of the benefit per year. 1 � 3 Res. No. 19542 Page 4 Section 12. All allocation ofPrognrrn assistance to any applicant shalt be at the discretion of the City Counc-' Nothing herein shall require the City Council to allocate Program funds to any applicant. ADOPTEDthis 16th dayof_ June _ 1999. ' AYES: Members Barnes, Hodges, Oden, Reller-Spurgin and Mayor Kleindienst NOES: None ABSENT: None ATTEST: CITY P SPRING ORNIA By: ` City Clerk er REVIEWED.AND APPROVED AS TO FORM: ` RESOLUTION NO. 22693 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE ELIGIBILITY CRITERIA FOR THE JOB CREATION INCENTIVE PROGRAM, AND AMENDING RESOLUTION NO. 19542. THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY FIND AS FOLLOWS: A. The City Council established a Job Creation Incentive Program by adopting Chapter 3.38 of the Palm Springs Municipal Code, to be implemented by one or more resolutions of the City Council. B. The City Council adopted Resolution No_ 19542, establishing the criteria for the Job Creation Incentive Program, C. The City Council desires to amend the criteria as established in Resolution No. 19542. THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. Section 6 of Resolution No. 19542 is hereby amended to read: The minimum number. of new full-time jobs created by an eligible manufacturing company shall be no less than fifty (50). The number of jobs created by another type of benefit-{producing business shall be fifty (50) nominal jobs, equivalent to no fewer than fifty (50) full-time positions. These employment levels shall be agreed to in writing and remain in effect during the period of the agreement between the City and the business. SECTION 2. All other provisions of Resolution No. 19542 shall remain in full force and effect. ADOPTED THIS 7T" DAY OF APRIL, 2010. ATTEST: .Z David H. Re anager es Thompson, City Clerk Resolution No. 22693 Page 2 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Resolution No. 22693 is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on the 7th of April, 2010, by the following vote: AYES: Councilmember Foat, Councilmember Mills, Councilmember Weigel, Mayor Pro Tern Hutcheson, and Mayor Pougnet. NOES: None. ABSENT: None. ABSTAIN: None. mes Thompson, City Clerk � 616 CityofPlmSprings, Califonia6` Exhibit B (Legal Description of the Property) Legal Description for property at 265 N. El Cielo, Palm Springs, California 3.40 ACRES M/L IN LOT 1 MB 109/097 TR 14573 Exhibit C (Verification of Building fees paid for tenant improvements) s City of Palm Springs TENTATIVE BUILDING PERMIT Not a final or enforceable permit No rights conferred Permrcrechrcaan Angela LaFrance DATE PLAN CHECK PLw CHECK CASE B E M P EP HP seam TTE0 4/26/2010 NUMBER $$7$ FEE 4000 NUMBER 5. 0533 PERMfTS X X X X X X Owner Address Phone 5ttate Uc.Number The Abbey Co 340 S. Farrell, PS 760) 320-2050 Contractor Address Phone State UC.Number NL Services 2423 Winston Rd. Anaheim, Ca 714) 635-1788 704214 Architect Address Total value of work$ 500, 000 . 00 David Liang 2423 Winston Rd. Anaheim, Ca sewer ngreemer## meet 1 Address Sdxnl Fee Empire 3 7010 Arlington, Riverside, Ca FbdureUnits 53 to Is BWtlt# Trad Bullding Address Building Permit 2 + 14573 0265 EL CIELO ROAD NORTH W4W A 4, 271 . 31 Lot Size Zane Height Occupamy AA.No., Total Area Plan Check A B/A3 1 5 . 0533 001-34301 1, 177 . 74 Setbacks AS Rant side Side Rear Parcel Number SMIP Tax Constructed I 1 1 5 0 2-15 0-011 001-37112 105 . 00 Square euadng naraWCarport Roofed Pdta/PorCh Mgofilm Footage 1 1 001-3008 10 0 . 00 Use of building SMIPType Permit Type Carat.Type Fire sprinkler Units New Sew Cn Permit ISSIldI� Commercial 2 CMA VB Y 0 0 001-322M 104 . 44 Class of New Addmons Nkrabons Repair Remodel Remora[ Replace Constnrtbn Tax Work X 001-31601 0. 00 Describe work in detail: pW.F¢pJRmw/Miser. Interior tenant improvements at existing medical office 001-32210 0 . 00 building for Desert Oasis Healthcare. Construction Permit 001-3UO3 0 . 00 Sawa inspection 00132202 0 . 00 Spedal Conditions: Saver Main 420-38704 0 . 00 Sewn Agreement TaA 0. 00 sewer Connection Fee DO NOT CONCEALOR COVER ANY CONSTRUCTION UNTIL THE WORK IS INSPECTED 420.38703 16, 218 . 00 IMPORTANT Drainage Fee 0 . 00 TUMF Fee This Tentative Building Permitis provided solely for 0 . 0 0 for the convenience and information of the applicant Nnsc Filing Fee regarding identification of estimated fees,charges,and requirements that may be applicable to the proposed project. No rights are conferred on the applicant and the City reserves the right to modify DOI34210 104 . 00 any or all fees,charges,and requirements specified in this Tentative Building Permit prior to or at the Publk Arts Fee time a final Building Permit Is issued. 150-343% 2, 500 . 00 Manning Fee . - - 001-34303 0 . 00 Technology Fee 261-32214 650 . 00 - - General Plan MoInt.Fee 001-34310 0 . 00 001-3n19 20 . 00 TOTALFEE 25, 250.49 OWNER/CONTRACTOP4AGENT DATE ISSUED BY This Is a Building when properly filled out,signed and validated,and is not transferable. City of Palm Springs c TENTATIVE BUILDING PERMIT V N Not a final or enforceable permit No rights conferred Permit Tedmidan Angela LaFrance DATE PLAN CHECK PWl CHECK CASE B E M P EP HP sumn-r D 4/28/2ola NUMBER 8878 FEE 4000 NUMBER 5 . 0533 PERmris X X X X X X owner Address phone state Uc Number The Abbey Co 340 S. Farrell, PS 760) 320-2050 Contractor Addess Phone state Uc.Number NL Services 2423 Winston Rd. Anaheim, Ca 714) 635-1788 704214 ^"hilmt Aid"e Total value of work$ 500, 000 . 00 David Liang 2423 Winston Rd. Anaheim, Ca sewer Agreement Ergtea AddnM School Fee Empire 3 7010 Arlington, Riverside, Ca PotiveUnls 60 tM N Block A Tract BWIding Address safe permit 2 + 14573 0265 EL CIELO ROAD- NORTH AIM B 4 , 520 . 07 Lot SM1 Zone Height O=pancy AA No. Total Area plan Chad A B 5 . 0533 Igo= 00 1, 327. 00 Setbacks As rront side Side Rex Parcel Number SM1P Tax Constructed 5 02-15 0-011 001-37112 105 . 00 Square eulirkng Gerageicarport Roofed PatWlorrh MIr»Im Footage 0 0 0 001-34306 100 . 00 Use of building SMIP Type Perrot Type I Conk Type Fire Sprinkler Units New Sew Cn ponat lssoaree Commercial 2 CKA JVB IY 0 0 001-32204 104 .44 Class of New AddFJ= AltEratgns Repair Renoddl JFWenwwal Replan Cansbnaw Too, Work X 001-31a01 0 . 00 Oesote work in delall: Dbl.Fee7RnrftN Interior tenant improvements at existing medical office 001-32210 0 . 00 building for Desert. oasis Healthcare. corwtnxtnri Perndt _ 001-32m3 0 . 00 Sewer D*pecdon 001.32202 0. 00 SDedal condid0M15: Sewer Main 420-39704 0 • 00 sewer Agreement TPA 0 . 00 sewer Connection Fee DO Norr CONCEAL OH COVER ANY CONSmUCfION UNnLTHE WORK IS mSPECTED 420-38M 18, 360 . 00 IMPORTANT Drainage Fee 0 . 00 TUMF Fee This Tentative BuildingPermit is 134-33ng 0. 00 provided solely for the convenience and information of the applicant regarding identification of estimated fees,charges,and requirements that may be applicable to the Mir re"g Fee proposed project No rights are conferred on the applicant and the City reserves the right to modify 002-34220 104 . 00 arry or all fees,charges,and requirements specified in this Tentative Building Permit prior to or at the Public Arts fee time a final Building Permit is Issued. 150-34390 2, 500 . 00 Planning Fee . 001-34303 0• 00 Tedvelapy fee 261-32214 650 . 00 . General Plan MairR.Fee . 001-34310 0 . 00 001-32219 20. 00 TOTALFEE 27, 790 .51 OWNER/CONTRACrOR/AGENT DATE ISSUED BY This is a Building when properly filled out,signed and validated,and is not transferable. Exhibit D (Certificate of Program Compliance executed by Company) 9 3200 Tahquitz Canyon Way P.O. Box 2743 % gN; The City of Palm Springs Palm Springs60.z38259 Job Creation Incentive Program Certificate of Program Compliance Part A: Employer Information: Company Name: F 00 Address: ') ri (J ��. ' c, a(, City, State, Zip: Contact Name: e' ( Phone: �7(�� -32c)- � �C ��� " Email: t� N I fv ;kC_ - ) y--- Part B: Employee Information (to be verified by City of Palm Springs Staff) EMPLOY ENT CERTIFICATION Period Covered from �, I l l to ` �Ro I j 2 The undersigned, a I ice. �I QSt of the Company, has read and is thoroughly familiar with the provisions of the Job Creation Reimbursement Agreement ("JCRA") and documents referred to therein executed by the owner of the Property in the City of Palm Springs where the Company is located ("Developer") and the City of Palm Springs ("City"), as such terms are defined in Resolution No. 19542 of the City of Palm Springs. As of the date of this Certificate, for the period shown above, the following number of full-time employees employed at the Company is: Total full-time employees who worked during reporting period: — 6 Total new` full-time employees who worked during reporting period: ("Number of new employees as a result of expansion to 265 N. El Cielo, Palm Springs, CA) I have read the aforementioned statement and understand all of the items. I execute voluntarily, on the date listed below, with full knowledge of its significance. I certify under penalty of perjury under the laws of the State of California that the facts and statements presented in this Job Creation Incentive Program and Certificate of Program Compliance, as well as any attached documents,am true and accurate. Signature of Company's Representative Date' Verified by:d t1 /1 City of Palm Springs Date Note: City of Palm Springs Staff completing this Certificate has relied on the employment information supplied by the Company in determining the eligibility of the Employee. Exhibit E (Memorandum of Lease) 10 LEASE AGREEMENT MEMORANDUM BASIC LEASE INFORMATION Date: March 15,2010. Landlord: AP-PALM SPRINGS AIRPORT LLC,a Delaware limited liability company. Tenant: DESERT MEDICAL GROUP,INC., a California corporation. The Project: Palm Springs Airport Center,255-275 N. El Cielo Road, Palm Springs, Califomia. The Premises: 265 N. El Cielo Road, Buildings A&B, Palm Springs, California,containing approximately 33,724 rentable square feet of space, which area shall be measured and certified by Landlord's architect using BOMA standards, without modification, upon completion of the Initial Leasehold Improvements in the Premises and shall thereafter be the basis for all Rent and other obligations of Tenant hereunder. Tenant's Percentage Share: 100%. Term: Eighty-Seven(87)full calendar months. Option Term: Two (2) options to extend the initial Term of the Lease for an additional sixty (60) months each, pursuant to the terms and conditions of Section 4.6 below. Commencement Date: December 1,2010,subject to Sections 4.2 and 4.3 below. Base Rent: $65,761.80 per month,subject to increase in accordance with Exhibit"B"attached hereto. Security Deposit: $131,141.05. Use: General medical office use consistent with the character of a first class medical office building which includes pharmacy, immediate care,and general medical administration. Monthly Project Operating Costs Charge: $15,045.00 monthly, subject to adjustment as provided under Paragraph 5.3 below. Landlord's and Tenant's Address for Notices: If to Landlord: If to Tenant: AP-Palm Springs Airport LLC Desert Medical Group, Inc. c/o The Abbey Management Company LLC 265 N. El Cielo Road 310 Golden Shore,Suite 300 Palm Springs,California Long Beach, CA 90802 Phone:760.320.8814 ext 1004 Attn:Asset Manager Attn: Kay Etsell Phone: 562.435.2100 Fax: 562.435.2109 Brokers: None. Parking: One Hundred Twenty-two (122)total unreserved parking permits. This Basic Lease Information shall be a part of this Lease, provided that in the event of any conflict between any Basic Lease Information and the provisions contained in the body of this Lease,the latter shall control.