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HomeMy WebLinkAbout05356 - MARRIOTT VACATION CLUB INT'L OP/LEASE AGR TERMINAL COUNTER PROMO SPACE Cindy Berardi From: Mark Jucht Sent: Monday, March 26, 2018 12:21 PM To: Cindy Berardi Subject: RE: Marriott Ownership Resorts A5356 Yes, Certainly Mark lucht Airport Administration Manager Palm Springs International Airport 3400 E. Tahquitz Canyon Way Palm Springs, CA 92262 mark.jucht@palmspringsca.gov (760)318-3808 From: Cindy Berardi Sent: Monday, March 26, 2018 11:50 AM To:Suzanne Seymour<Suzanne.Seymour@palmspringsca.gov> Cc: Marklucht<Mark.Jucht@palmspringsca.gov> Subject: Marriott Ownership Resorts A5356 Is it okay to close this out? t ��QALM SAP • • City of Palm . , prings v` Office of the City Clerl� ` * 3200 E. Tahquitz Canyon Way • Palm Springs, CA 92262 Tw -� Tel-(760)323-8204 • Pax: (76o) 322-8332 • TDD:(760)964-�127 • Web: www.palmspringsca.gov cq�i�oaN1 - . May 24, 2014 Marriott Ownership Resorts Mr. Anthony Brick, Marketing Mgr 9000 Shadow Ridge Road Palm Desert, CA 92211 Re: Certificate of Insurance City of Palm Springs Agreement No. A5356 Dear Mr. Brick: During a review of the agreement file, it has been noted there are discrepancies relating to the certificate of insurance on file as listed below: The General Liability policy expired on 10101/2011. The Workers Comp policy expired on 10/01/2011. The Automobile policy expired on 10/01/2011. Please contact your insurance office and request a current Certificate of Insurance and corresponding endorsements be sent to: Kathie Hart, CIVIC City of Palm Springs 3200 E Tahquitz Canyon Way Palm Springs, CA 92262 Please email the requested document(s) to me at Kathie.Hart@PaimSpringsCA.gov. If you fax or email the certificate there is no need to forward a paper copy via the U.S. Mail. This will avoid duplication. Sincerely, Kathie Hart, CIVIC Chief Deputy City Clerk Post Office Box 2 •743 Palm Springs, California 92263-2743 Aarnottt `),flm Sh uhI, I�icl�;c,� m 92 I',ilni I)rsc�rl,(alilnrnci�)';?1 1 SHADOW RIDGE r,1 7h(16' -7811i I,ix A Marriott Vacation Club Resort t� August S, 2010 W VIA HAND DELIVERY c. Palen Springs International Airport -' Attn: Thomas Nolan. Executive Director 3400 East Tahquitz Canyon Way, Suite OFC ; Palm Springs, California 92262-6966 Re: Renewal Notice--Non-Exclusive Operating and Lease Agreement for Terminal Counter Promotional Space at Palm Springs International Airport between the City of Palm Springs ("City") and Marriott Ownership Resorts, Inc. ("MORI") dated September 1, 2006 ("Lease") Dear Mr. Nolan: Pursuant to Section 2.2 of the above-referenced Lease, MORI hereby provides notice that it is exercising its second one-year Extension Option, extending the term of the Lease through August 31, 2011. Please feel free to contact me if you have any questions. Sincerely, J �•2(/y1.E�i Charisse Dahlke Director of Finance, Shadow Ridge cc: Kathi Borkholder, Esq. ``++arnotB - BUIIU Shaduw Ridge Road m .�� Palm Disci 1.California 92260 SHADow RIDGE ;l,0/!„4-291 Salrs x�nd Po6ac2:elino 7GU/674-2 U fax A Manioa Vacation Chic Rcwr! August 3, 2009 -, VIA HAND DELIVER Palm Springs International Airport CD Attn: Director of Aviation 3400 East Tahquitz Canyon Way, Suite OPC Palm Springs, California 92262-6966 Re: Renewal Notice—Non-Exclusive Operating and Lease Agreement for Terminal Counter Promotional Space at Palm Springs International Airport between the City of Palm Springs ("City") and Marriott Ownership Resorts, Inc. ("MORI") dated September 1, 2006 ("Lease") Dear Mr. Walsh: Pursuant to Section 2.2 of the above-referenced Lease, MORI hereby provides notice that it is exercising its first one-year Extension Option, extending the term of the Lease through August '0 1, 2010. Please feel fzee to contact nee if you bave any questions. Sincerely, Gary Ardrey Director of Finance, Shadow Ridge cc: Kathi Borkholder, Esq. MARRIOTT OWNERSHIP RESORTS, INC D/B/A MARRIOTT VACATION CLUB INTERNATIONAL NON-EXCLUSIVE OPERATING AND LEASE AGREEMENT FOR TERMINAL COUNTER PROMOTIONAL SPACE AT PALM SPRINGS INTERNATIONAL AIRPORT THIS LEASE ("Lease") is made and entered into this 1st day of September 2006, by and between the CITY OF PALM SPRINGS, a charter city and California municipal corporation ("City"), and MARRIOTT OWNERSHIP RESORTS, INC DIB/A MARRIOTT VACATION CLUB INTERNATIONAL, a Delaware corporation ("Tenant"). City and Tenant may hereinafter be referred to individually as a "Party" j and collectively as"Parties". 'I RECITALS A. Tenant desires to lease and operate a promotional terminal taunter space at Palm Springs International Airport("Airport"). I B. City believes that travelers and visitors using the City's airport terminal would benefit from the convenience and accessibility of such promotional space. i NOW THEREFORE, City and Tenant mutually agree as follows: AGREEMENT Section 1. LEASE SUMMARY i Certain fundamental Lease provisions are presented in this Section and represent the agreement of the parties hereto, subject to further definition and elaboration in the respective referenced Sections and elsewhere in this Lease. In the event of any conflict between any fundamental Lease provision and the balance of this Lease,the latter shall control. 1.1 Demised Premises. The "Demised Premises" shall refer to Terminal Counter Space #1 located-in-hc-airport-terminal--and-more-particularly~described-in-Exhibit--'A' attached I hereto. 1.2 Lease Term. The term of this Lease shall commence on September 1, 2006 and shall terminate on August 31, 2009, unless extended as provided herein. i 1.3 Extension Opl'ions. Two (2) one-year options. I 1.4 Lease Rental Payments. $2,69024 per month due on the first or each month. $32,282.88 per annum. 1.5 Security Deposit. $5380.48 1.6 Use of Demised Premises. Demised Premises may be utilized for the display of Promotional material permitted under the City zoning Ordinances of the City applicable to the Demised Premises and the Airport Rules and Regulations. i 1.7 Datis_/_Hours of Operation: Seven days per week,a minimum of six(6) hours per day. Marriott Ownership Resorts, Inc. Page 1 of 17 d/b/a Marriott Vacation Club International Non-Exclusive Operating&Lease Agreement i Palm Springs international Airport li i Section 2. TERM 2.1 Initial Term. The Initial term of this Lease shall commence on the date specified in Section .I 1.2 ("Commencement Date") and shall continue for the period specified therein unless earlier terminated as provided herein. 2.2 Option Term. Tenant is given the option(s) to extend the term on all of the provisions contained in this Lease for the period specified in Section 1.3("Extension Options")_ Upon exercise of each and every Option Term, the monthly,and annual rent shall be automatically adjusted in an amount equal to the increase in the Consumer Price Index published by the United States Department of Labor. Bureau of Labor Statistics (1982- 1984 = 100) [the "CPI"] for "All Items - All Urban Consumers", for the Los Angeles- Anaheim-Riverside Metropolitan Statistical Area, during the preceding term. City shall send Tenant written notice of the applicable Rent increase for the term of each Option Term along with documentation evidencing the calculation used to arrive at that figure no less than thirty(30)days prior to the date the increase becomes effective. i 2.3 Tenant's Termination Right. Tenant shall have the right to terminate this Lease, with or without cause, by giving City thirty(30) days' prior written notice. In the event that Tenant terminates this Lease as provided in this Section 2.3, City shall retain the Security Deposit as its remedy hereunder, and upon payment by Tenant to City of all amounts otherwise due under this Lease through the date of termination,Tenant and City shall thereafter have no rights or obligations under this Lease. Section 3. RENTAL. 3.1 Monthly Rental. Tenant shall pay to City, during the term of this Lease from and after the Commencement Date as monthly rental for the Demised Premises the sum specified in Section 1.4 hereof, which sum shall be paid in advance on the first day of each calendar month. All rental to be paid by Tenant to City shall be in lawful money of the United States of America and shall be paid without deduction or offset, prior notice or demand at the address designated in Section 15-12 hereof. 3.2 Additional Rental_ For purposes of this Lease, all monetary obligations of Tenant under this Lease, including, but not limited to, insurance premiums, property taxes (if any), maintenance expenses, late charges and utility costs shall be deemed additional rental. 3.3 Real Property Taxes. In addition to all rentals herein reserved, Tenant shall pay, at the election of City, either directly to the taxing authority or to City, any annual real estate taxes and assessments levied upon the Demised Premises (including any possessory interest taxes), as 'well as taxes of every kind and nature levied and assessed in lieu of, in substitution for, or in addition to, existing real property taxes, if any. (Tenant specifically acknowledges that the interest granted under this Lease may be subject to possessory interest taxes.) Such amount shall be paid on the date that is twenty(20) days prior to the delinquent date or, if City receives the tax bill, ten (10) days after receipt of a copy of the tax bill from City, whichever is later. Even though the term of this Lease has expired and Tenant has vacated the Demised Premises, when the final determination is made of I Tenant's share of such taxes and assessments, Tenant shall immediately pay to City the amount of any additional sum owed. Marriott Ownership Resorts, Inc. Page 2 of 17 d/b/a Marriott Vacation Club International Non-Exclusive Operating&Lease Agreement Palm Springs International Airport i 3.4 Personal Prope&Taxes- During the term hereof Tenant shall pay prior to delinquency all taxes (if any) assessed against and levied upon fixtures, furnishings„ equipment and al€ other personal property of Tenant contained in the Demised Premises, and when possible tenant shall cause said fixtures, furnishings, equipment and other personal property to be assessed and billed separately from the real property of City. 3.5 Utilities- All cost for water, gas, heat or electricity used in connection with the heating or air conditioning furnished to the Demised Premises shall be paid by City, Tenant shall pay before delinquency all charges for telephone service, trash removal and all other services and utilities used in, upon, or about the Demised Premises by Tenant. 3.6 Late Payment. Tenant hereby acknowledges that late payment by Tenant to City of rental or other sums due hereunder will cause City to incur costs not contemplated by this Lease, the exact amount of which is extremely difficult to ascertain. Such costs include, but are not limited to, processing and accounting charges. Accordingly, any payment of any sum to be paid by Tenant not paid within five (5) days of its due date shall be subject to a five percent (5%) late charge. City and Tenant agree that this late charge represents a reasonable estimate of such costs and expenses and is fair compensation to City for its loss suffered by such late payment by Tenant- 3-7 Interest. Any sum to be paid pursuant to the terms of this Lease not paid when due shall bear interest from and after the due date until paid at a rate equal to three percent (3%) over the reference rate being charged by Bank of America, N.A. from time to time during such period so long as the rate does not exceed the maximum non-usurious rate permitted by law in which case interest shall be at the maximum non-usurious rate allowed by law at the time the sum became due. 3.8 Security Deposit. Tenant shall provide a security deposit in the amount specified in Section 1.5 hereto. Said deposit shall be paid at the commencement of Lease Term. Upon termination of this Lease and provided that all amounts due to the City are paid, and the Demised Premises has been returned to the City in the same condition as received by the Tenant, the deposit shall be returned to the Tenant. In the event fees are not paid or if the Dcmised Premises are damaged, City shall have the right, but not the obligation to raw -upnrrtheF-deposit'to c'oveT-said-costs-tlpon-termination-ofthis-L-ease-any-balance-of-- the deposit not drawn against shall be paid to the Tenant. Section 4- USE OF THE PREMISES, 4.1 Permitted Uses- Promotional services displayed shall be limited to the Demised Premises. No signs, posters or similar devices shall be erected or displayed by Tenant without prior written approval of the Director of Aviation. Merchandise or services shall not be sold from 1 the Demised Premises, but Tenant and its employees shall be permitted to greet and converse with members of the public who approach the Demised Premises (or otherwise initiate the contact) and only from the Demised Premises, The Director of Aviation must approve the initial list of promotional services displayed on or from the Demised Premises and any subsequent changes to the list of promotional services displayed. 4.2 Operational Standards. The operations of the Tenant, its employees, invitees and those doing business with it shall be conducted in an orderly and proper manner and so not to annoy, disturb, or be offensive to others at the Airport. No solicitation of the public outside the Demised Premises is allowed, Tenant shall provide and its employees shall wear or i Marriott Ownership Resorts, Inc. Page 3 of 17 d/b/a Marriott Vacation Club International Non-Exclusive Operating& Lease Agreement Palm Springs International Airport I carry badges or other suitable means of identification. The badges or means of identification shall be subject to the written approval of the Airport Director. The City shall have the right to object to Tenant regarding the demeanor, conduct or appearance of Tenant's employees, invitees and those doing business with it, whereupon Tenant will take steps necessary to remove the cause of objection. Tenant shall select and appoint a manager for its operation within the Demised Premises. Said person must be a qualified and experienced manager, vested with full power and authority, and shall so inform City in respect to the method, manner and conduct of the operation al the Airport The manager shall be available during regular business hours and at all times during his/her absence, a subordinate shall be in charge and available at the Demised Premises. Tenant shall be responsible for the conduct, demeanor and appearance of its officers, agents, employees and representatives- Customer service personnel and attendants shall be trained by Tenant to render a high degree of courteous and efficient service, and it shall be the responsibility of the Tenant to maintain close supervision over said personnel to assure the rendering of a high standard of service to the public and the patrons of the Counter concession. Upon objection from the Director of Aviation concerning the conduct, demeanor or appearance of such persons, Operator shall take all steps necessary to j remove the cause of the objection. Tenant, its agents and employees shall conduct and maintain a friendly, cooperative, though competitive relationship with its competitors operating in the Airport. Tenant shall not engage in open, notorious and public disputes, disagreements or conflicts tending to deteriorate the quality of service of its competitor or be incompatible to the best interest of the public at the Airport. The City shall have the right to resolve all such disputes, disagreements, or conflicts and its determination shall be final- 4.2 Compliance with Laws- Tenant shall, at its sole cost and expense, comply with all of the requirements of all municipal, state, and federal authorities now in force or which may hereafter be in force pertaining to the use of the Demised Premises, and shall faithfully observe in said use all municipal ordinances, including, but not limited to,the General Plan end-zoning-ordinances state-and-federal-statutes—orothergovemmental-regulations-now in force or which shall hereinafter be in force. Tenant shall not engage in any activity on or about the Demised Premises that violates any Environmental Law, and shall promptly, at Tenant's sole cost and expense, take all investigatory and/or remedial action required or ordered by any governmental agency or Environmental Law for clean-up and removal of any contamination involving any Hazardous Material created or caused directly or indirectly by Tenant. The term "Environmental Law" shall mean any federal, state or local law, statute, ordinance or regulation pertaining to health, industrial hygiene or the environmental conditions on, under or about the Demised Premises, including, without limitation, (i) the Comprehensive Environmental Response, Compensation and Liability Act of 1980 ("CERCLA"), 42 U-S-C. Sections 9601 at seq.; (ii) the Resource Conservation and Recovery Act of 1976, ("RCRA"), 42 U.S.C. Sections 6901 at M.; (iii) California Health and Safety Code Sections 25 100 at seq.; (iv)the Safe Drinking Water and Toxic Enforcement Act of 1986, California Health and SafetyCode Section 25249.5 et seq,; q.: (v) California Health and Safety Code Section 25359.7; (vi) California Health and Safety Code Section 25915; (vii) the Federal Water Pollution Control Act, 33 U.S.C. Sections 1317 at Seq-; (viii) California Water Code Marriott Ownership Resorts, Inc- Page 4 of 17 d/b/a Marriott Vacation Club International Non-5xclusive Operating&Lease Agreement Palm Springs International Airport I i i I Section 1300 et seq.; and (ix) California Civil Code Section 3479 et seq., as such laws are amended and the regulations and administrative codes applicable thereto. The term "Hazardous Material" includes, without limitation, any material or substance which is (i) defined or listed as a "hazardous waste", "extremely hazardous waste", "restrictive hazardous waste" or"hazardous substance" or considered a waste, condition of pollution or nuisance under the Environmental Laws; (ii) petroleum or a petroleum product or fraction thereof; (Ili) asbestos; and/or (iv) substances known by the State of California to cause cancer and/or reproductive toxicity. It is the intent of the parties hereto to construe the terms "Hazardous Materials" and "Environmental Laws" in their broadest sense. Tenant shall provide all notices required pursuant to the Safe Drinking Water and Toxic Enforcement Act of 1986, California Health and Safety Code Section 26249.6 et seq. Tenant shall provide prompt written notice to City of the existence of Hazardous Substances on the premises and all notices of violation of the Environmental Laws received by Tenant. 4.3 Operat ons for Beneft of Public Tenant agrees to operate the Demised Premises for the use and benefit of the public, to make available all Tenants' airport facilities to the public, without discrimination on the grounds of sex, race, color or national origin. Nothing herein contained shall be construed to grant or authorize the granting of an exclusive right within the meaning of Section 308 of the Federal Aviation Act of 1958, as amended. 4-4 Public Facilities Ingress, Egress and Quiet En'o menf- City agrees That Tenant, upon payment of the rental hereunder and performing the covenants of the Lease, may quietly have, hold and enjoy the Demised Premises during the term of the Lease, and that Tenant shall have the non-exclusive right to use, in common with others, the public facilities at the Airport and Tenant shall have a reasonable right of ingress to and egress from the Demised Premises and the public facilities for its employees, visitors and customers. City shall provide parking at no cost for two (2) Tenant employee vehicles in the Airport Employee Parking Lot. 4-5 Rules and Regulations. Tenant shall faithfully observe and comply with the any rules and regulations that City shall from time to time promulgate and/or modify. Any amendment or modification of the Airport Rules and Regulations shall be binding upon the Tenant upon delivery-of--a-copy-of-such-amendment-ormodification to Tenant eity--shall-not-be responsible to Tenant for the nonperformance of any said rules and regulations by any other tenants or occupants. The Airport Rules and Regulations shall apply and be enforced ' as to all tenants in the Demised Premises on a uniform basis- Section 5. ALTERATIONS AND REPAIRS. 5.1 Imi3rovements. Alterations and Fixtures. Tenant shall not make or suffer to be made, any alterations or improvements to the Demised Premises, or any part thereof,without the prior written consent of City, and any alterations or improvements to the Demised Premises, except movable furniture, and trade fixtures, shall become at once a part of the realty and shall at the expiration or earlier termination of this Lease belong to City free and clear of ! any liens or encumbrances. Tenant shall not in any event make any changes to the exterior of the Demised Premises, if any-Any such alterations or improvements shall be in f conformance with the requirement of all municipal, state, federal, and other governmental j authorities, Including requirements pertaining to the health, welfare or safety of employees of the public and in conformance with reasonable rules and regulations of City. City may require that any such alterations or improvementi be removed prior to the expiration of the Marriott Ownership Resorts, Inc. Page 5 of 17 d/b/a Marriott Vacation Club International Non-Exclusive Operating& Lease Agreement . Palm Springs International Airport i ' term hereof.Any removal of alterations or improvements or furniture and trade fixture shall be at Tenants expense and accomplished in a good and workmanlike manner_ Any damage occasioned by such removal shall be repaired at Tenant's expense so that the Demised Premises can surrender in a good, clean and sanitary condition as required by Section. 5.2 hereof.All fixtures, improvements and appurtenances installed by Tenant shall conform with the requirements of all municipal, state, federal, and governmental authorities including requirements pertaining to the health, welfare, or safety of employees or the public, 5.2 Maintenance and Repair.Tenant shall, subject to City's obligations hereinafter provided, at all times during the term hereof, and at Tenant's sole cost and expense, keep, maintain and repair the Demised Premises and other improvements within the Demised Premises in good and sanitary order, condition, and repair (except as hercinafler provided).. Tenant shall also at its sole cost and expense be responsible for any alterations or improvements to the Demised Premises necessitated as a result of the requirement of any municipal, state or federal authority.Tenant hereby waives all right to make repairs at the expense of the State of California to make said repairs. By entering into the Demised Premises, Tenant shall be deemed to have accepted the Demised Premises as being in good and sanitary order, condition and repair, and Tenant agrees on the last day of said term or sooner termination or this Lease to surrender the Demised Premises with appurtenances, In the same condition as when received and in a good, clean and sanitary condition, reasonable use and wear thereof and damage by fire, act of God or by the elements _ excepted. 5.3 Free From Liens. Tenant shall keep the Demised Premises free from any liens arising out of any work performed, material furnished, or obligation incurred by Tenant or alleged to have been incurred by Tenant. 5.4 CiWs Reserved Rights. (a) Airport Development and Safety. City reserves the right to further develop or improve the aircraft operating area of the Airport as it sees fit, and City reserves the right to take any action it considers necessary to protect the aerial approaches of the Airport against -- obstruction;together-tivithi-rthe-right-to-prevent Tenant-from erecting-ar-perrnitdrg--to-be---'-- erected any building or other Structure of the Demised premises which, in the opinion of City,would limit the usefulness of the Airport or constitute a hazard to aircraft. (b) Right to Relocate Customer Service Counter. City reserves the right to relocate all of the Customer Service Counter Space within the Terminal Building if required to ensure the operational effectiveness of the Terminal Building and concourses and if City agrees to reimburse such Relocation Costs to Tenant through Concession Fee credits. Said relocation shall be in order of original counter selection to an area of comparable size and quality as is reasonably practicable. "Relocation Costs" shall mean the reasonable and actual out-of-pocket expenses incurred by Tenant to move from the existing assigned Customer Service Counter Space to a substituted area (Substituted Premises) and the unamortized cost of Customer Service counter improvements made by Tenant, if any, that cannot be relocated to the Substituted Premises. The unamortized cost of the improvements shall be determined In accordance with Generally Accepted Accounting Principles with a useful life not to exceed the term of the this Lease. Marriott Ownership Resorts, Inc. _ Page 6 of 17 d/b/a Marriott Vacation Club international Non-Exclusive Operating&Cease Agreement Palm.Spdngs International Airport i 'i Upon completion of such relocation, Tenant shall provide City with a statement certified by a financial officer of Tenant: (1)setting out Tenant's Relocation Costs; and (2) itemizing the- improvements made by Tenant that cannot be relocated to the Substituted Premises and showing the calculation of the unamortized value of such improvements_ Copies of invoices shall accompany said statement for such Relocation Costs. City shall thereafter reimburse Tenant for such Relocation Costs by crediting the Privilege Fee thereafter due until the Relocation Costs are reimbursed. Notwithstanding the foregoing, in the event the Substituted Premises is unsatisfaotory to Tenant in its reasonable discretion, Tenant shall give Landlord written notice thereof ("Tenant's Objection Notice") within ten (10) days following Tenant's receipt of notice of Such relocation, following which Tenant and Landlord shall work in good faith to resolve Tenant's objections to the Substituted Premises or to locate alternate Substituted Premises reasonably acceptable to Tenant. In the event that Landlord and Tenant are unable to reach agreement within thirty (30) days following Landlord's receipt of Tenant's Objection Notice, Tenant may terminate this Lease by giving written notice thereof to City, which termination shall be effective the date relocation is required by the City, In the event of termination by Tenant under this paragraph, the Security Deposit shall be returned to Tenant upon payment by Tenant to City of all amounts otherwise due under this Lease through the date of termination. Tenant and City shall thereafter have no rights or obligations under this Lease. (c) Termination By City For Airport Related Purpose_ In the event City should require the Demised Premises, or any portion thereof, for any Airport related purpose whatsoever, Tenant agrees that City may terminate this Lease by giving Tenant one hundred twenty (120) days written notice, If this Lease is terminated under the provisions of this Section 5.4(c), City shall reimburse Tenant for Tenant's actual construction cast of any new improvements installed subsequent to the execution of this Lease and pursuant to the provisions of Section 5.1 of this Lease, less depreciation at the rate of 20% per year from date of this Lease, regardless of when such improvements are installed. The reimbursement provided above shall be Tenant's sole and exclusive remedy and form of compensation, costs or damages, including Relocation Assistance benefits (Sec, 7260 _seer.—ofthe C'alifomfa-(3overnment-Gode)-due-torterminatiorrria-entry-or- cgoisition by City. j (d) Lease to United States. During the time of war or national emergency, City shall have the right to lease the landing area or any part thereof to the United States Government for military or naval use, and, if such lease is executed, the provisions of this Lease insofar as they are inconsistent with the provisions of the lease to the Government shall be suspended and, in that event, a just and proportionate part of the rent hereunder shall be abated, and the period of such closure shalt be added to the term of this Lease so as to extend and postpone the expiration thereof unless the Tenant otherwise elects to terminate this Lease, I Section 6. INSURANCE AND INDEMNIFICATION. I 6.1 Insurance. Prior to its ability to access the Demised Premises, Tenant will provide City with proof of insurance, at Tenant's sole cost and expense, to remain in full force and effect during the entire term of this Lease. The following policies of insurance shall be maintained: Marriott Ownership Resorts, Inc. Page 7 of 17 d/b/a Marriott Vacation Club International Non-Exclusive Operating&Lease Agreement Palm Springs International Airport i I 6.1,1 W_ orkers' Compensation Insurance. Workers' Compensation Insurance in an amount required by the laws of California and Employer's Liability Insurance in an amount not less that ONE MILLION DOLLARS ($1,000,000) combined single limit for all damages iarising from each accident or occupational disease. i 6,1.2 Commercial General Liabift.Commercial General Liability Insurance written on a per-occurrence and not a claims-made basis with a combined single limit of at least ONE j MILLION DOLLARS ($1,000,000) bodily injury and property damage including coverages for contractual liability, personal injury, independent contractors, broad form property damage, products and completed operations. 6.1.3 Automobile Liability Insurance. A policy of comprehensive automobile liability insurance written on a per-occurrence basis in an amount not less than ONE MILLION DOLLARS ($1,000,000) combined single limit covering all awned, non-owned, leased, and hired vehicles used in connection with operations occurring on the Demised Premises. 6.1.4 Other Insurance. Such other policies of insurance Including, but not limited to, casualty insurance, business interruption insurance, and fidelity insurance, as may be required by the nature of operations. 6.1.5 General Provisions. The above insurance shall be primary and no other insurance maintained by the City will be called upon to contribute to a loss. All polices except Workers Compensation shall have the City named as an additional insured. Workers Compensation insurance of the Tenant shall contain a waiver-of-subrogation clause in favor of the City, its officers, directors, officials, agents, employees, volunteers, and representatives. All policies of insurance required to be obtained by Tenant hereunder shall be issued by insurance companies authorized to do business in California and must be rated no less than A-, VII or better in Best's Insurance Guide_ Prior to engaging in any operations hereunder, Tenant shall deliver to City ,Gertificate(s) of insurance and endorsements evidencing the coverages Specified above. Such policies shall not be cancelled or materially altered to the detriment of City or Tenant without the insurer providing City with thirty(30)days'written notice. 6.2 Indemnification by Tenant. Tenant shall indemnify, defend (with counsel designated by City), protect and hold harmless City, City's Parties and the Releasing Parties from and against any and all claims, demands, judgments, actions, damages, losses, penalties, liabilities, costs and expenses(including,without limitation, attorney's fees and court costs) arising at any time directly or indirectly from or in connection with (i) any default in the performance of any obligation by Tenant to be performed under the terms of this Lease, (ii) Tenant's use of the Demised Premises, or (ill) the conduct of Tenant's business or any activity, work or things done, permitted or suffered by Tenant in or about the Demised Premises, except to the extent caused by City's negligence or willful misconduct. The obligations of Tenant under this Article 6 shall survive the expiration or earlier termination of this Lease. i Tenant, as a material part of the consideration to City, hereby assumes all risk of damage to the Demised Premises, including, without limitation, injury to persons in, upon or about the demised Premises during Tenant's use of the Demised Premises, except where such damage or injury is caused solely by the negligence or willful misconduct of the City or the City's Parties. Tenant hereby waives all claims with respect thereof against City_ City shall Marriott Ownership Resorts, Inc. Page 8 of 17 d/b!a Marriott Vacation Club International Non-Exclusive Operating&Lease Agreement Palm'Springs International Airport i not be liable for any injury to the Tenant, or injury to or death of any of Tenant's Parties, or injury to or death of any other person in or about the Demised Premises from any cause except to the extent caused by the negligence or willful misconduct of the City or the City's Parties. 6.3 Assum ticn of All Risks and Liabilttles. Tenant assumes all risks and liabilities arising out of any and all use of the Demised Premises by Tenant or Tenant's Parties, except where such damage or injury is caused solely by the negligence or willful misconduct of the City or the Citys Parties. -I Section 7. ABANDONMENT AND SURRENDER. 7A Abandonment. Tenant shall not vacate or abandon the Demised Premises at any time during the term of this Lease; and if Tenant shall abandon, vacate or surrender the Demised Premises or be dispossessed by process of law, or otherwise, any personal property belonging to Tenant and left on the t7emised Premises shall be deemed to be abandoned,at the option of City, except such property as may be mortgaged to City. 7.2 Surrender of Lease. The voluntary or other surrender of this Lease by Tenant or a mutual cancellation thereof, shall not work a merger, and shall, at the option of City, terminate all provisions of existing lease_Tenant shall not assign or sublease. Section S. DAMAGE AND DESTRUCTION OF DEMISED PREMISES. In the event of(a) partial or total destruction of the Demised Premises during the term of this Lease, which requires repairs to the Demised Premises, or (b)the demised Premises being declared unsafe or unfit for occupancy by any authorized public authority for any reason, which declaration requires repairs to the Demised Premises, Tenant shall forthwith make said repairs, except where such damage or injury is caused solely by the negligence or willful misconduct of the City or the City's Parties_ No such damage or destruction (including any destruction necessary in order to make repairs required by any declaration made by any public authority) shall in any way annul or void this Lease. Tenant shall promptly clean and remove all debris resulting from said damage or destruction.Tenant shall take preliminary steps toward restoring the improvements with thirty (30) days of the casualty and such —�"- im-prave-rrerst�shall—be fesCo��d within�r�a�6riable�tirisc�th�l'zaftel'-Thy[)emise�i �' Premises shall be restored to the condition they existed immediately before said casualty. Section 9. ASSIGNMENT. Tenant shall not assign this Lease the.Demised Premises, or any interest therein. Any assignment without the prior written consent of City shall be void, shall constitute a material breach of this Lease,and shall,at the option of City,terminate this Lease. Section 10. ENCUMBRANCE. 10.1 This Lease, or any right to or interest in, or any of the improvements on the Demised premises, may be encumbered with the written approval of City, Any such approved j encumbrance shall be subject to the covenants, conditions and restrictions set forth herein and to all rights of City. 102 Any encumbrance must be confined to the leasehold interest of Tenant and shall not affect in any way the City's interest in the land. The encumbrance shall provide that the proceeds from fire or extended coverage insurance shall be used for the repair or rebuilding of the Marriott Ownership Resorts, Inc. Page 9 of 17 dfb!a Marriott Vacation Club International Non-Exclusive Operating&Lease Agreement Palm Springs International Airport leasehold improvements and not to repay any part of the outstanding mortgage. Tenant agrees to furnish, as requested, any financial statements or analyses pertinent to the encumbrance that City may deem necessary to justify the amount, purpose and terns of said encumbrance. 10.3 In the event of default by the Tenant of the terms of an approved encumbrance, the encumbrancer may exercise any rights provided in such approved encumbrance provided that, before any sale of the Leasehold estate, whether by power of sale or foreclosure,the encumbrancer shall give to City notice of the same character as is required to be given to Tenant by such encumbrancer pursuant to the loan documents and/or the laws of the State of California and City shall be given an additional thirty (30) days in which to cure the default afterthe time for Tenant to cure has expired. 10.4 If any sale under the approved encumbrance occurs, whether by power of sale or foreclosure, and the purchaser at such sale is the encumbrancer, the encumbrancer may sell and assign this Lease without any further consent of City provided that the assignee shall agree in such assumption by the assignee, the encumbrancer shall be released from all future obligations of the Tenant under this Lease. If a sale under the approved encumbrance occurs, and the purchaser is a party other than the encumbrancer, said purchaser, as successor in interest to the Tenant shall be bound by all the terms and ,I conditions of this Lease and the purchaser shall assume in writing the obligations of Tenant hereunder. 10.5 If notice of such sale shall be given and the defaults or any of them upon which such notice of sale is based shall then continue, City shall have the right to correct such defaults at any time prior to the date of sale or foreclosure, and to terminate such leasehold upon paying to the encumbrancer the balance of the encumbrance as hereinafter defined. 10.6 "Balance of encumbrance" shall mean the amount of principal remaining unpaid on a note secured by a trust deed or mortgage of an interest plus accrued and past due interest thereon and expenses incurred by the lender in connection with foreclosure including by not limited to, fire insurance premiums, title insurance expenses, recording fees, appraisal fees, credit reports and any tax reporting services and additional expenditures paid by the 'ender-on—additions;betterments--and—rehabilitatiorrs—ot impmveomts or the taotsertF--' ------' encumbered pursuant to plans approved by City, which consent may not be unreasonably withheld, and other expenses necessary to place the improvements in marketable condition, such adjusted principal to be paid in case or, at the option of City, amortized over the term and in accordance with the schedule set forth in said note, the interest rate on the unpaid balance thereto to be asset forth in said note. I 10.7 City agrees to provide encumbrancer written notice of any default by Tenant under this Lease and an opportunity to cure at the time notice of such default is provided to Tenant and give encumbrancer thirty(30) days to cure a monetary default or forty-rive (45)days to cure a non-monetary default; provide, however, that if such non-monetary default cannot be cured within such period of forty-five (45) days, encumbrancer shall have a reasonable time to cure such default provided that encumbrancer commences to cure within said forty- five (45) days and diligently prosecutes the cure to completion. Such period shall include the time to complete a foreclosure action if encumbrancer needs to gain possession of the Demised Premises to cure said default by Tenant. Marriott Ownership Resorts, Inc. Page 10 of 17 d/b/a Marriott Vacation Club International Non-Exclusive Operating&Lease Agreement Palm Springs International Airport Section I. DEFAULT AND REMEDIES, 11.1 -in the event Tenant fails to perform any obligations under this Lease and after the expiration of any cure period, City may terminate Tenant's right to possession of the Demised Premises by any lawrul means, in which case this Lease shall terminate. 112 Neither party shall be deemed to be in default in the performance of any obligation required to be performed by it hereunder unless and until it has failed to perform such obligation within thirty (30) days after written notice by the other party specifying in reasonable detail the nature and extent of any such failure; provided, however, that if the nature of the obligation is such that-more than thirty (30) days are required for its performance, then the party shall not be deemed to be in default if it shall commence such performance within such thirty (30) day period and thereafter diligently prosecutes the same to completion. Section 12 ENFORCEMENT OF LAW 12.1 Governing Law- This Lease shall be governed by, interpreted under, and construed and enforced in accordance with the laws of the State of California. 12.2 Compliance with Law. All services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules, and regulations of the City and any Federal, State,.or local governmental agency having jurisdiction in effect at the time service is rendered. 12.3 Waiver. The waiver of any breach of any provision hereunder by City or Tenant shall not be deemed a waiver of any preceding or subsequent breach hereunder. No failure or delay of any Party in the exercise of any right given hereunder shall constitute a waiver thereof nor shall any partial exercise of any right preclude further exercise thereof. 12A Severabilay. If any paragraph, section, sentence, clause or phrase contained in this Lease shall become illegal, null or void, against public policy, or otherwise unenforceable, for any reason, or held by any court of competent jurisdiction to be illegal, null or void, —against-public-policy,-orotherwise-unenforceable-the-remairring-paragraphs;-sections-,— sentences, clauses or phrases contained in this Lease shall not be affected thereby. 12-5 Termination Prior to Expiration of Term. The parties agree that if Tenant: (i)files a petition in bankruptcy, (ii) is adjudicated bankrupt, (iii) if a petition in bankruptcy is filed against Tenant and not discharged within thirty (30) days, (iv) if Tenant becomes insolvent or makes an assignment for the benefit of its creditors or an arrangement pursuant to any bankruptcy law, or(v) if a receiver is appointed for Tenant or its business during the Term of this Lease, City may terminate this Lease upon twenty-four (24) hours' written notice to Tenant, 12.6 Attorneys Fees. If either party to this Lease is required to initiate or defend or made a party to any action or proceeding in any way connected with this Lease, the prevailing party in such action or proceeding in addition to any other relief, which may be granted, shall be entitled to reasonable attorney's fees and costs. i Marriott Ownership Resorts, Inc. Page 11 of 17 d/b/a Marriott Vacation Club International Nan-Exclusive Operating&Lease Agreement Palm Springs International Airport I i Section 13. CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION. 13.1 Non-liabllity of City Officers and Employees.No officer or employee of the City shall be personally liable to the Tenant, or any successor in interest, in the event of any default or breach by the City or for any amount, which may become due to the Tenant or to its successor, orfor breach of any obligation of the terms of this Lease. 13.2 Conflict of Interest. No officer or employee of the City shall have any financial interest, direct or indirect, in this Lease nor shall any such officer or employee participate in any decision relating to this Lease which effects his financial interest or the financial interest of any corporation, partnership or association in which he is, directly or indirectly, interested, in violation of any State statute or regulation. Tenant warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Lease. 13.3 Standard Covenant Against Discrimination- Tenant covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin, or ancestry in the 1 performance of this Lease. Tenant shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion,sex, marital status, national origin,or ancestry. 13,4 Americans With Disabilities Act. In its operation of Demised Premises, Tenant shall comply with the Americans with Disabilities Act and all federal regulations applicable under the Act. Section 14. FAA REQUIRED PROVISIONS. 14,1 Tenant, as a part of the consideration for this Lease, covenants and agrees"as a covenant running with its interest in property" that in the event facilities are constructed, maintained, or otherwise operated on the Airport or the Demised Premisess for a purpose for which a Department of Transportation ("DOT') program or activity is extended or for another purpose-involving-thei-provision ot-dmitarse7vices or benefits;tff�Terlar5ti shall marnitair and operate such facilities and services in compliance with all other requirements imposed pursuant to Title 49, Code of Federal_Regulations DOT, Part 23, Nondiscrimination in :i Federally Assisted Programs of the Department of Transportation-Effectuation of Title VI of the Civil Rights Act of 1964, as such regulations may be amended from time to time. 14.2 This Lease is subject to the requirements of the U-S_ Department of Transportation's regulations, 49 CFR part 23. The Tenant or contractor agrees that it will not discriminate against any business owner because of the owners race, color, national origin or sex in connection with the award or performance of any concession agreement, management contract, or subcontract, purchase or lease agreement or other agreement covered by 49 CFR part 23. 14.3 The Tenant or contractor agrees to include the above statements in any subsequent concession agreement or contract covered by 49 CFR part 23, that it enters and causes those businesses to similarly include the statements in further agreements. i Marriott Ownership Resorts, Inc. Page 12 of 17. d/b/a Marriott Vacation Club International Nan-Exclusive Operating l,Lease Agreement Palm Springs International Airport i 14A In the event of a breach of the.covenants specified in Subsection 14.1 and 14.2 of this Lease, City shall have the right to terminate this Lease and to reenter and repossess the Demised Premisess and the facilities thereon and hold the same as if said Lease had never been made or issued. This provision does not become effective until the procedures of Title 49, Code of Federal Regulations, Part 23 are followed and completed, including the expiration of any appeal rights, 14Z Tenant shall furnish its services on a fair, equal, and not unjustly discriminatory basis to all users thereof and it shall charge fair, reasonable, and not unjustly discriminatory prices for its services; provided that Tenant may be allowed to make reasonable and nondiscriminatory discounts, rebates, or other similar type of price reductions to volume purchases or other rational, reasonable basis. Non-compliance with this provision shall constitute a material breach of this Lease and in the event of such non-compliance, City shall have the right to terminate this Lease and any interest in property created without liability or at the election of the City or the United States either or both Governments shall have the right to judicially enforce this provision. 14.6 Tenant agrees that it shall insert the above five provisions in any lease or contract by which Tenant grants a right or privilege to any person, partnership, or corporation to render services to the public on the Demised Premises pursuant to this Lease. Nothing in this provision shall be construed as waiving any obligations or requirements of the Tenant pursuant to Subsection 4.3 of this Lea-so or abrogate the rights of the City pursuant to such subsection. 14.7 This Lease shall be subordinate to the provisions and requirements of any existing or future agreement between the City and the United States relative to the development, operation,or maintenance of the Airport. 14.8 This Lease, and all provisions hereof, shall be subject to whatever right the United States Government now has or in the future may have or acquire, affecting the control, operation, regulation, and taking over of the Airport or the exclusive or non-exclusive use of the Airport by the United States during a time of war or national emergency_ �----------Section 5�MI5( ELL-ANEOUSPROVISIONS 15.1 Headings. The headings of this Lease are for purposes of reference only and shall not limit or define the meaning of the provisions of this Lease. 15.2 Counteparts. This Lease may be signed in any number of counterparts, each of which will be deemed an original, but all of which together will constitute one instrument. i 15.3 Labor Disputes. Tenant shall give prompt notice to City of any actual or potential labor dispute which delays or may delay performance of this Lease, I 16.4 California Law. This Lease shall be construed and interpreted both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Lease shall be instituted in the Superior Court of the County of Riverside, State of California, or any other appropriate court in such county, and Tenant covenants and agrees to submit to the personal jurisdiction of such court in the event of such aotlon. Marriott Ownership Resorts, Inc. Page 13 of 17 i d/b/a Marriott Vacation Club International Nan-Exclusive Operating&Lease Agreement Palm Springs International Airport i 15.5 Disoutes. In the event of any dispute arising under this Lease, the injured party shall notify the injuring party in writing of its contentions by submitting a claim therefore. The injured party shall continue performing its obligations hereunder so long as the injuring party commences to cure such default within ten (10) days of service of such notice and a completes the cure of such default within forty-five (45) days after service of the notice, or such longer period as may be permitted by the injured party; provided that if the default is an immediate danger to the health, safety and general welfare, such immediate action may be necessary, Compliance with the provisions of this Section shall be a condition precedent to termination of this Lease for cause and to any legal action, and such compliance shall not be a waiver of any party's right to take legal action in the event that the dispute is not cured, provided that nothing herein shall limit City's or the Tenant's right to terminate this Lease without cause pursuant to Subsection 5.4(c). 15.6 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Lease,the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. 15.7 Legal Action. In addition to any other rights or remedies, either, party may take legal action, in law or in equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Lease, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Lease. 15.8 Reservation of City Rights. City reserves the right, but shall not be obligated to Tenant,to maintain the Demised Premises and keep in good repair the Airport or the Demised Premises. The City further reserves the right to direct and control all activities of Tenant consistent with the provisions of this Lease. 15.9 Interpretation. The terms of this Lease shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Lease or any other rule of construction which might otherwise apply. I 1-5-10--I nteg ratio n-Amendment-lt-is-understood-that-there-a re-no-oral-leases-betwecn-the-parties hereto affecting this Lease and this Lease supersedes and cancels all previous negotiations, arrangements, leases and understandings, if any, between the parties, and none shall be used to interpret this Lease.This Lease may be amended at any time by the mutual consent of the parties by an instrument in writing. 15.11 Corporate Authority. The persons executing this Lease on behalf of the parties hereto warrant that (1) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Lease on behalf of said party, (iii) by so executing this Lease, such party is formally bound to the provisions of this Lease, and (iv)the entering into this Lease does not violate any provision of any other Lease to which said party is bound. 15.12 Notice.Any notice required or permitted to be given hereunder shall be in writing and signed by the Party, officer or agent of the Party tG whom it is to be sent, and shall be either. (1) personally delivered to the Party to wham it is to be sent, or (2) sent via overnight courier services, or (3) sent via certified or registered mail, return receipt requested, postage prepaid to the respective addresses, or such other addresses as the i Parties may specify in writing: Marriott Ownership Resorts, Inc. Page 14 of 17 d/b/a Marriott Vacation Club International Non-Exclusive Operating&Lease Agreement Palm Springs International Airport i To City: Palm Springs International Airport Attn: Director of Aviation 3400 East Tahquitz Canyon Way, Suite OFC Palm Springs, California 92262-6966 '•i To Tenant: Marriott Vacation Club International j Attn: Ryan Caress/Marketing Manager '.i 9000 Shadow Ridge Road, Palm Desert, CA 92211 i i i Marriott Ownership Resorts, Inc. Page 15 of 17 d/b/a Marriott Vacation Club International Nan-Exclusive Operating&Lease Agreement J Palm Springs International Airport i , I IN WITNESS WHEREOF, the parties have executed and entered into this Lease as of the date first written above. - - - CITY Or PALM SPRINGS - ATTEST: a municipal corporation t City Manager APPROVED A %dFORM: APPROVED BY CITY COUNCIL By ��!!/��/1��1/ hro 'V l� Io•ISS�b P�rlh�b City Attorney "I CONTRACTOR: Marriott Ownership Resorts, Inc.d/b/a Marriott Vacation Club International Check one:—individual Partnership X Corporation Corporations regpi two notarized signatures:one from each of the follov�nng:A Chairman of Board,Preside r aVice President AND 8. _ Secretary,, siSC+n ecretary.Treasurer,Assistant Treasurer,or Chief Fnancial Odlcer r 1 i, Signature(n tariaedp Signature(no[ 'zed) Names Peter J Watzka Name: Daniel B. Zan ini Tulle: Vir•e VrPcidenr Title: Assistant Secretary i State of F kit L A 0 State of & t r4n i �p Ir j County of�' f- cjE o,s "� County of Ass onPgl G before me, �YrE - J UuA( an to bet; t �• -�/ ✓l Personally appeared Personally appeared personally known to me(or proved to me on the basis'of personally known to me(or proved to me on the basis of satisfactory satisfactory evidence)to be the person(s)whose name(s) evidence)to be the person(s)whose name(s)is/are subscribed to islare subscribed to the within instrument and acknowledged the within instrument and acknowledged to me that he/she/Ihey to me that he/she/they executed the same in his/her/their executed the same In hls/herltheirauthartzed capaoity(ies) and that authorized capacityQes),and that by hlslher/their signature(s) by his/her/their signature(s)on the instrument the person(s),or the on the instrument the person(s),or the entity upon behalf of entity upon behalf of which the person(s)acted.exeouted the which the person(s)acted,executed the inz-tumenl_ Instrument. WITNESS my hand d offici al seal. , WITNESS my hand and oofficial—seal. ,�n q�/` Notary Signatu - , J'�r^—i� l.L (rQ-�`^'I L Notary Signature: `n� 6 Notary5eal; Notary Sea[; U NOTARY PUBLIC-STATE OF FLORIDA ;ef. w Beatrice A.vanek Mary Anne Douglass i My Commission n033%08 g Commission#➢➢546877 Nei M1d° Expires September 10,2003 Expires: JUNE 01, 2010 Bonded Thnt Auntie Bonding Co,,InC. Marriott Ownership Resorts, Inc. page 16 of 17 d/b/a Marriott Vacation Club International Nan-Exclusive Operating&Lease Agreement Palm Springs International Airport Exhibit W Terminal Counter Space#1 See Attached r I I II i I I i I r i I I ,I Marriott Ownership Resorts, Inc. Page 17 of 17 d/b/a Marriott Vacation Club International Non-Exclusive Operating&Lease Agreement Palm Springs International Airport i r f EXHIBIT"A" Palm Spr[nUs Internat anal Airport Marriott Terminal Counter Space Termina[ Counter Spa ;a#1 1 l T ` NOTE: SHADED AREA REPRESENTS LEASED SPACE \ OF 84 SQUARE FEET. 12 x 7 SQ. FT. � r 12 Boa -u.. AREA OF B LOW[JP h� � � ni