HomeMy WebLinkAbout7/2/2003 - STAFF REPORTS (3) DATE: July 2, 2003
TO: City Council
FROM: Executive Director- Airports
HANGAR LEASE WITH PALM SPRINGS UNIFIED SCHOOL DISTRICT
RECOMMENDATION:
It is recommended that the City Council approve a hangar lease between the Palm
Springs Unified School District and the City of Palm Springs.
SUMMARY:
The term for existing hangar lease between the Palm Springs Unified School District and
the City of Palm Springs is ending on June 30, 2003. A new lease agreement which
incorporates the same provisions of the previous lease is scheduled to be effective July
1, 2003 and is submitted for City Council consideration.
BACKGROUND:
The Palm Springs Unified School District has leased the old bird hangar for storage of
school supplies and equipment for the last 5 years. The lease is scheduled to expire on
June 30, 2003. The term of the new lease will be July 1, 2003 through June 30, 2005
with 3 one year renewal options. The base monthly rental amount is $1,993.95. The
Airport Commission has reviewed this agreement and recommends City Council
approval.
Oil --
—BARRY GRIFFITN ALLEN F SMO T, A.A.E.
Assista t'Dire'ctor of Aviation Executive Director - Airports
APPROVED'
G ryty Mangij r N
J'
Attachments: 1. Hangar Lease Agreement
2. Minute Order
REVIEWED BY DEPT.OF FINANCE
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HANGAR LEASE WITH PALM SPRINGS UNIFED SCHOOL DISTRICT
THIS LEASE ("Lease") is made and entered into this 1st day of July, 2003, by
and between the CITY OF PALM SPRINGS, a municipal corporation ("City"), and PALM
SPRINGS UNIFIED SCHOOL DISTRICT, (`Tenant').
1. LEASE SUMMARY.
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. References to specific Sections are for convenience only
and designate some of the Sections where references to the particular fundamental
lease provisions may appear.
1.1 Demised Premises. The "Demised Premises" shall refer to that certain
real property located in the County of Riverside, State of California, as more particularly
described in Exhibit "A" hereof together with the improvements located thereon and as
depicted as the cross-hatched portions on the Plot Plan attached as Exhibit "B" hereof.
1.2 Lease. Commencement Date. The term of this Lease shall commence
on July 1, 2003 and shall terminate on June 30, 2005.
1.3 Extension Option. Three (3) one-year options. (See Section 2.2).
1AMonthly Rental. Base Rental - $1,993.95 (See Section 3.1).
1.5Security Deposit. None.
1.6Use of Demised Premises. Tenant desires to warehouse school
district furniture and office equipment for internal school usage. Other items will include
books, supplies and miscellaneous paper materials. Items specifically prohibited from
storage include, but are not limited to, flammable liquids, hazardous materials and
machinery powered by combustible fuel. The facility is to be used only for the long-term
warehousing of acceptable materials. Materials may not be stacked higher than eight
(8) feet. Tenant will use its best efforts to restrict the use of the facility to School District
employees and shall ensure that there is little or no occupancy of the building on a daily
basis.
1.7Termination. Landlord shall have the express right to terminate this
Lease upon providing Tenant one hundred twenty (120) days written notice of such
intent if Landlord requires the premises for an aviation-related use.
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1.8Tenant's Address for Notices.
William J. Schmidt, Director
Facilities, Planning & Development
Palm Springs Unified School District
980 E. Tahquitz Canyon Way
Palm Springs, CA 92262-0119
2. TERM.
2.1 Initial Term. The initial term of this Lease shall commence on the date
specified in Section 1.2 ("Commencement Date") and shall continue for the period
specified therein unless earlier terminated as provided herein.
2.2Option 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 ("extended
term") following the expiration of the initial term or any other extended term properly
exercised hereunder, by giving notice of exercise of the option ("option notice") to City at
least one hundred twenty (120) days but not more than six (6) months before the
expiration of the initial term or any other extended term properly exercised hereunder;
provided that, if Tenant is in default on the date of giving the option notice the option
notice shall be totally ineffective or, if Tenant is in default on the date the extended term
is to commence, the extended term shall not commence and this Lease shall expire at
the and of the initial term or properly exercised extended term.
2.3Time. Time is of the essence of this Lease.
2AForce Maieure. If either party hereto shall be delayed or prevented
from the performance of any act required hereunder by reason of acts of God, strikes,
lockouts, labor troubles, inability to procure materials, restrictive governmental laws or
regulations or other cause without fault and beyond the control of the party obligated
(financial inability excepted), performance of such act shall be excused for the period of
the delay and the period for the performance of any such act shall be extended for a
period equivalent to the period of such delay, provided such party provides the other
party written notice of such event within ten (10) days of the commencement of the
delay; provided, however, nothing in this Section shall excuse Tenant from the prompt
payment of any rental or other charge required of Tenant hereunder except as may be
expressly provided elsewhere in this Lease.
2.5Holdina Over. Any holding over after the expiration of the term of this
lease, with the consent of City, express or implied, shall be construed to be a tenancy
from month to month, cancelable upon thirty (30) days written notice, and at a rental
equal to one hundred fifty percent (150%) of the last applicable Monthly Rental and
upon terms and conditions as existed during the, last year of the term hereof.
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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 ("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. In the event the Commencement
Date does not occur on the first day of a calendar month, the Tenant shall pay the rental
for the fractional month on the Commencement Date on a per them basis (calculated on
a thirty-day 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 13.10 hereof.
3.2Costs of Living Adjustment. Upon each fifth year anniversary date of
the Commencement Date or if the Commencement Date is not an the first day of a
month, then on the first day of the next calendar month, the Monthly Rental shall be
adjusted in proportion to changes in the Consumer Price Index except that no five (5)
year adjustment shall exceed 25%. Such adjustment shall be made by multiplying the
original Monthly Rental by a fraction, the numerator of which is the value of the
Consumer Price Index for the calendar month three (3) months preceding the calendar
month for which such adjustment is to be made and the denominator of which is the
value of the Consumer Price Index for the some calendar month immediately prior to
Commencement Date. For example, if the adjustment is to occur effective June 1,
2006, the index to be used for the numerator is the index for the month of March 2006
and the index to be used for the denominator is the index for the month of March
preceding the Commencement Date. However, in no event shall the rent be reduced
below the Monthly Rental in effect immediately preceding such adjustment. The
"Consumer Price Index" to be used in such calculation is the Consumer Price Index, All
Urban Consumers (All Items) for the Los Angeles-Anaheim-Riverside Metropolitan
Area, published by the United States Department of Labor, Bureau of Labor Statistics
(1982-84 = 100). If both an official index and one or more unofficial indices are
published, the official index shall be used. If said Consumer Price Index is no longer
published at the adjustment date, it shall be constructed by conversion tables included
in such new index.
3.3Additional Rental. For purposes of this Lease, all monetary obligations
of Tenant under this Lease, including, but not limited to, insurance premiums, property
taxes, maintenance expenses, late charges and utility costs shall be deemed to be
additional rental.
3.4Real 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, annual
real estate taxes and assessments levied upon the Demised Premises (including 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.
Such amount shall be paid on the date that is twenty (20) days prior to the delinquent
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date or, if City receives the tax bill, thirty (30) 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 Promises, when the final determination is made of
Tenant's share of such taxes and assessments, Tenant shall immediately pay to City
the amount of any additional sum owed.
3.5Personal Property Taxes. During the term hereof Tenant shall pay
prior to delinquency all taxes assessed against and levied upon fixtures, furnishings,
equipment and all 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.
3.6Utilities. Tenant shall pay before delinquency all charges for water,
gas, and heat. Electricity, power, sewer, telephone service, trash removal and all other
services and utilities used in, upon, or about the Demised Premises by Tenant or any of
its subtenants, licensees, or concessionaires during the term of this Lease.
3.7Late 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 when
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.
3.81nterest. 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.
4. USE OF THE PREMISES.
4.1 Permitted Use. The City hereby leases to Tenant and Tenant hires
from City the Demised Premises with appurtenances as defined herein, for the purpose
of conducting thereon only the use specified in Section 1.7 of this Lease and for no
other use.
4.2Compliance 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 and zoning ordinances, state and federal statutes, or other
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governmental regulations now in force or which shall hereinafter be in force. Tenant's
violation of law shall constitute an admission of Tenant in any action or proceeding
against Tenant, whether City is a party thereto or not, that Tenant has violated any such
order or statute in said use, shall be conclusive of that fact as between the City and
Tenant.
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 et seq.; (ii) the Resource
Conservation and Recovery, Act of 1976 ("RCRA"), 42 U.S.C. Sections 6901 et seq.;
(iii) California Health and Safety Code Sections 25100 et seq.; (iv) the Safe Drinking
Water and Toxic Enforcement Act of 1986. California Health and Safety Code Section
25249.5 et sec.; (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 et seq.; (viii) California Water Code 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; (iii)
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 25249.5 et sec . 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,
4.3Non-Discrimination & FAA Required Clauses.
(a) Tenant, in the operations to be conducted pursuant to the
provisions of this Lease and otherwise in the use or the Airport, shall not discriminate
against any person or class of persons by reason of race, color, sex, creed or national
origin as in any manner prohibited by Part 15 of the Federal Aviation regulations or any
amendments thereto.
(b) Tenant shall furnish its accommodations and/or services on a
fair, equal and not unjustly discriminatory basis to all users thereof. It shall charge fair,
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equal and not unjustly discriminatory prices for each unit or service; provided, however,
that the tenant may be allowed to make reasonable and non-discriminatory discounts,
rebates or other similar types of price reductions to volume purchasers in accordance
with the other provisions of this Lease with regard to discounts and rebates.
(c) The Tenant agrees to insert the anti-discrimination provisions
hereinabove enumerated in any agreement by which said Tenant grants a right or
privilege to any person, firm or corporation to render accommodations and/or services
to the public on the Demised Premises.
(d) City also reserves the right, but shall not be obligated to Tenant,
to maintain and keep in repair the landing area of the Airport, as well as publicly owned
facilities of the Airport, together with the right to direct and control the activities of the
Tenant in this regard.
(e) Tenant hereby agrees to comply with the notification and review
requirements covered in Part 77 of the Federal Aviation regulations in the event any
future structure or building is planned or in the event of any planned modification or
alteration of any present or future building or structure situated on the Demised
Premises.
(f) City hereby reserves a right of flight for the passage of aircraft in
the airspace above the surface of the Demised Premises together with the right to
create in said airspace such noise as is or shall become inherent in the operation of
aircraft. Operating on the Airport.
(g) Tenant, by accepting the Lease, expressly agrees for itself, its
successors and assigns that it shall not erect nor permit the erection of any structure or
object nor permit the growth of any tree on the land leased hereunder above the mean
sea level elevation of five hundred (600) feet. In such an event, City reserves the right to
enter upon the Demised Premises and cause the abatement of the interference or
hazard at the expense of the Tenant.
(h) Tenant, by accepting this Lease, expressly agrees for itself, its
successors and assigns that it shall not use the Demised Premises in any manner
which might interfere with the landing and taking off of aircraft from on or off the Airport
or otherwise create a hazard. In such an event, City reserves the right to enter upon the
Demised Premises and cause the abatement of the interference or hazard at the
expense of the Tenant.
(i) This agreement and all the 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 or commandeering of the Airport or
the exclusive or non-exclusive use of the Airport by the United States during the time of
war or national emergency.
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Q) Operations for Benefit of Public. Tenant agrees to operate the
Demised Premises for the use and benefit of the public, to make available all Tenant's
airport facilities to the public, other than office or restricted areas. Without discrimination
an the grounds of sex, race, color or national origin and to refrain from imposing or
levying excessive discriminatory or otherwise unreasonable charges or fees for any use
of its facilities or otherwise unreasonable charges or fees for any use of its facilities for
services. 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. Other Tenants or aircraft shall have the right to cross over
taxiway/ramp areas of the Leasehold.
4.4Signs. Tenant shall not place or permit to be placed any sign that is
not in compliance with the sign ordinance of the City upon the exterior or in the windows
of the Demised Premises. Any sign not constructed in accordance therewith shall be
immediately removed by Tenant and, if said sign is not removed by Tenant within ten
(10) days of written notice from City to Tenant, then City may remove said sign without
Tenant's approval and without any liability to Tenant.
4.5Public Facilities, Ingress, Egress and Quiet Enioyment. 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, expressly including access to runways and
taxiways, from the Demised Premises and other public facilities.
4.6Rules and Regulations. Tenant shall faithfully observe and comply
with the rules and regulations that City shall from time to time promulgate and/or modify.
The current Rules and Regualations are set forth in Exhibit "C" hereof. Any amendment
or modification of the Rules and Regulations shall be binding upon the Tenant within a
reasonable period following delivery of a copy of such amendment or modification to
Tenant. City shall not be responsible to Tenant for the nonperformance of any said
rules and regulations by any other tenants or occupants. The Rules and Regulations
shall apply and be enforced as to all tenants in the Demised Premises on a uniform
basis.
5. ALTERATIONS AND REPAIRS
5.1 Improvements, 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, which consent shall not be
unreasonably withheld or delayed, and any alterations or improvements to the Demised
Premises, except movable furniture, trade fixtures, equipment, and items of personal
property 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
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Premises, if any. Any such alterations or improvements shall be in conformance with
the requirement of all municipal, state, federal, and other governmental 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 improvements be removed prior to the expiration of
the term hereof provided City has notified Tenant of such requirement at the time
alterations or improvements are approved. Any removal of alterations or improvements
or furniture and trade fixture shall be at Tenant's 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 surrendered in a good, clean
and sanitary condition as required by Section 5.2 hereof, reasonable wear and tear
excepted. Any and 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.
5.2Maintenance 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,
reasonable wear and tear excepted (except as hereinafter provided) including without
limitation, the maintenance and repair of any store front, doors, window easements,
glazing, heating and air conditioning system, plumbing, pipes, electrical wiring and
conduits. Tenant shall also at its sole cost and expense is 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. 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 of 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 and subject to any alterations or improvements approved by
City as provided herein. Tenant shall periodically sweep and clean the sidewalks
adjacent to the Demised premises, as needed.
5.3Free 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.
5ACity's 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 with the right to prevent Tenant
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from erecting or permitting 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 provided, if such developments or improvements
materially impair Tenant's use of the Demised Premises, Tenant can terminate this
lease without any further liability therefore.
(b) 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 the 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 shall be added to
the term of this Lease so as to extend and postpone the expiration thereof unless the
Tenant otherwise elects to terminate the Lease.
6. INSURANCE AND INDEMNIFICATION.
6.1 Insurance Provided by Tenant.
(a) Food Preparation. Tenant, if involved in food preparation and
sales as a cafe, restaurant, or similar use, and/or food takeout service, shall install at
Tenant s expense any fire protective systems in grill, deep fry, and cooking areas which
are required by city, county, and state fire ordinances, and such system when installed
shall qualify for full fire protective credits allowed by the fire insurance rating and
regulatory body in whose jurisdiction the Demised Promises are located.
(b) Tenant to Provide Personal Property Insurance. Tenant, at its
expense, shall maintain fire and extended coverage insurance written on a per
occurrence basis on its trade fixtures, equipment, personal property and inventory within
the Demised Premises from loss or damage to the extent of their full replacement value
and shall provide plate glass coverage.
(c) Tenant to Provide Liability Insurance. During the entire term of
this Lease, the Tenant shall, at the Tenant's sole Cost and expense, but for the mutual
benefit of City and Tenant, maintain comprehensive general liability insurance insuring
against claims for bodily injury, death or property damage occurring in, upon or about
the Demised Premises and an any sidewalks directly adjacent to -the Demised
Premises written on a per occurrence basis in an amount not less than either (i) a
combined single limit of FIVE MILLION DOLLARS ($5,000,000.00) for bodily injury,
death, and property damage or (ii) bodily injury limits of $1,000,000.00 per person,
$2,000,000.00 per occurrence and $2,000,000.00 products and completed operations
and property damage limits of $500,000.00 per occurrence and $1,000,000.00 in the
aggregate; provided, however, if City so elects City may provide such insurance and, In
such event, Tenant agrees to pay its pro rata share of the cost of said insurance on the
same basis as provided in Section 6.1 above.
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(d) Tenant to Provide Worker's Compensation Insurance. Tenant
shall, at the Tenant's sole cost and expense, maintain a policy of worker's
compensation insurance in an amount as will fully comply with the laws of the State of
California and which shall indemnify, insure and provide legal defense for both the
Tenant and the City against any loss, claim or damage arising from any injuries or
occupational diseases occurring to any worker employed by or, any persons retained by
the Tenant in the course of conducting Tenant's business in the Demised Premises.
(e) General Provisions Applicable to Tenant's Insurance. All of the
policies of insurance required to be, procured by Tenant pursuant to this Section 6.1
shall be primary insurance and shall name the City, its officers, employees and agents
as additional insured's. The insured's shall waive all rights of contribution they may have
against the City, its officers, employees and agents and their respective insurers. All of
said policies of insurance shall provide that said insurance may not be amended or
canceled without providing 30 days prior written notice by registered mail to, the City.
Prior to the Commencement Date or such earlier date as Tenant takes possession of
the Demised Premises for any purpose; and at least 30 days prior to the expiration of
any insurance policy, Tenant shall provide City with certificates of insurance or
appropriate insurance binders evidencing the above insurance coverage's written by
insurance companies acceptable to City, licensed to -do business in the state where the
Demised Premises are located and rated A:VII or, better by Beat's Insurance Guide. In
the event the Risk Manager of City ("Risk Manager") determines that (i) the Tenant's
activities in the Demised Premises creates an increased or decreased risk of loss to the
City, (H) greater insurance coverage 13 required due to the passage of time, or (iii)
changes in the industry require different coverage's be obtained, Tenant agrees that the
minimum limits of any insurance policy required To be obtained by Tenant may be
changed accordingly upon receipt of written notice from the Risk Manager; provided that
Tenant shall have the right to appeal a determination of increased coverage by the Risk
Manager to the City Council of City within ten (10) days of receipt of notice from the
Risk Manager. City and Tenant hereby waive any rights each may have against the
other on account of any loss or damage occasioned by property damage to the
Demised Premises, its contents, or Tenant's trade fixtures, equipment, personal
property or inventory arising from any risk generally covered by insurance against the
perils of fire, extended coverage, vandalism, malicious mischief, theft, sprinkler damage,
and earthquake sprinkler leakage. Each of the parties, on behalf of their respective
insurance companies insuring such property of either City or Tenant against such loss,
waives any right of subrogation that it may have against the other. The foregoing
waivers of subrogation shall be operative only so long as available in California and
provided further that no policy is invalidated thereby.
6.2Tenant to Provide Fire and Extended Coverage Insurance. Tenant, at
its expense, shall maintain fire and extended coverage insurance throughout the term of
this Lease written on a per occurrence basis on the Demised Premises, its trade
fixtures, equipment, personal property and inventory within the Demised Premises from
loss or damage to the extent of the full replacement value.
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6.3Indemnification of City. Tenant, as a material part of the consideration
to be rendered to City under this Lease, hereby waives all claims against City for
damage to equipment or other personal property, trade fixtures, leasehold
improvements, goods, wares, inventory, and merchandise, in, upon or about the
Demised Premises and for injuries to persons in or about the Demised Promises, from
any cause arising at any time, other than claims and injuries caused by the gross
negligence or willful misconduct of City or its agents, employees or invitees. Tenant
agrees to indemnify the City, its officers, agents and employees against, and will hold
and save them and each of them harmless from, any and all actions, suits, claims,
damages to persons or property, losses, costs, penalties, obligations, errors, omissions
or liabilities, (herein "claims or liabilities:") that may be asserted or claimed by any
person, firm or entity arising out of or in connection with (i) the negligent performance of
the work, operations or activities of Tenant, its agents, employees, subcontractors, or
invitees, provided for herein, or (ii) arising from the use of the Demised Premises or the
parking and common areas by Tenant or its employees and customers, (iii) or arising
from the failure of Tenant to keep the Demised Premises in good condition and repair,
as herein provided, or (iv) arising from the negligent acts or omissions of Tenant
hereunder, or (v) arising from Tenant's negligent performance of or failure to perform
any term, provision covenant or condition of this Lease, but excluding such claims or
liabilities arising from the sole negligence or willful misconduct of the City, its officers,
agents or employees, who are directly responsible to the City, and in connection
therewith:
(a) Tenant will defend any action or actions filed in connection with
any of said claims or liabilities and will pay all costs and expenses, including legal costs
and attorneys' fees incurred in connection therewith;
(b) Tenant will promptly pay any judgment rendered against the
City, its officers, agents or employees for any such claims or liabilities arising out of or in
connection with the negligent performance of or failure to perform such work, operations
or activities of Tenant hereunder, other than claims and injuries, caused by the gross
negligence or willful misconduct of City or its agents, employees or invitees; and Tenant
agrees to save and hold the City, its officers, agents, and employees harmless there
from,
(c) In the event The City, its officers, agents or employees is made
a party to any action or proceeding filed or prosecuted against Tenant for such
damages or other claims arising out of or in connection with the negligent performance
of or failure to perform the work, operation or activities of Tenant hereunder, other than
claims and injuries caused by the gross negligence or willful misconduct of City or its
agents, employees or invitees, Tenant agrees to pay to the City, Its officers, agents or
employees, any and all costs and expenses incurred by the City, its officers, agents or
employees in such action or proceeding, including but not limited to, reasonable legal
costs and attorneys' fees.
Palm Spungs Unified School District Page It of 11
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7. ABANDONMENT AND SURRENDER.
7.1 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 Demised Premises shall be
deemed to be abandoned, at the option of City, except such property as may be
mortgaged to City.
7.2Surrender 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 or any existing subleases or subtenancies, or may, at the
option of City, operate as an assignment to it of any or all of such subleases or
subtenancies.
8. DAMAGE AND DESTRUCTION OF 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 Promises, 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. 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 improvements shall be restored within a
reasonable time thereafter. The Demised Premises shall be restored to the condition
they existed immediately before said casualty. Notwithstanding the foregoing in the
event of total destruction of the Demised Promised (in Tenant's sole opinion), Tenant
shall have the right to terminate this lease without any further liability therefore.
9. ASSIGNMENT AND SUBLETTING,
Tenant shall not assign this Lease or sublet the Demised Premises, or any
interest therein, without the prior written consent of City, which consent shall not be
unreasonably withheld. Tenant may assign this Lease or sublet the Demised Premises
to any affiliate, parent or subsidiary of Tenant with prior written notification to City and
provision of a copy the assumption and assignment agreement. For purposes of this
Lease, an assignment shall be deemed to include the transfer to any person or group of
persons acting in concert of more than twenty five percent (25%) of the present
ownership and/or control of Tenant, taking all transfers into account on a cumulative
basis. Any such assignment or subletting shall be subject to all of the terms and
conditions of this Lease and proposed assignee shall assume the obligations of Tenant
under this Lease in writing in form satisfactory to City. The proposed assignee shall
simultaneously provide to City an estoppel certificate in the form described in Section
13.2 hereafter. Consent by City to one assignment, subletting, occupation or use by
Palm Springs Unified School District Page 12 of 12
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another person shall not be deemed to be consent to any subsequent assignment,
subletting, occupation or use by another person. Any assignment or subletting 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. Neither this Lease nor any
interest therein shall be assignable as to the interest of Tenant by operation of law.
City shall be under no obligation to consider a request for City's consent to
an assignment until Tenant shall have Submitted in writing to City a request for City's
consent to such assignment together with audited financial statements of the proposed
assignee, a history of the proposed assignee's business experience and such other
information as required by City the criteria for assignment as set forth herein are met. In
information as required by City the criteria for assignment as set forth herein are met. In
addition, if City determines that the Monthly Rent payable to City under this Lease is
less than the fair market rental value, as determined by City, City shall have the right to
condition its approval to an assignment or subletting on the increase of Monthly Rent to
the fair market rental value.
10.ENCUMBRANCE.
(a) 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, which shall not be unreasonably withheld. No such encumbrance or addition
thereto or extension thereof shall be valid without said approval. Any such approved
encumbrance shall be Subject to the covenants, conditions and restrictions set forth
herein and to all rights of City.
(b) Any encumbrance must be confined to the leasehold interest of
Tenant or the sub-leasehold interest of a subtenant, and shall not affect in any way the
landlord'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
leasehold improvements and riot to repay any part of the outstanding mortgage. Tenant
agrees to furnish, as requested, any financial statements or analysis pertinent to the
encumbrance that City may deem necessary to justify the amount, purpose and terms
of said encumbrance.
(c) 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 after the time for tenant to cure
has expired.
(d) 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 the Lease without any further consent of City
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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 the
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 conditions of the Lease and the purchaser shall
assume in writing the obligations of Tenant hereunder.
(e) 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.
(f) "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 lender on additions, betterments and
rehabilitations of improvements on the property encumbered pursuant to plans
approved by landlord, 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 as set forth in said note.
(g) 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 days, encumbrancer shall have a reasonable time to cure such default
provided that encumbrancer commences to cure within said forty-five days and
diligently prosecutes the cure to completion. Such period of time shall include the time
to complete a foreclosure action if encumbrancer needs to gain possession of the
Demise Premises to cure said default by Tenant.
11.DEFAULT AND REMEDIES.
11.1 Default by Tenant. In addition to the defaults described in Section
9.0 hereinabove, the occurrence of any one or more of the following events shall
constitute a default and breach of this Lease by Tenant; (a) the failure to pay any rental
or other payment required hereunder to or on behalf of City more than five (5) days after
written notice from City to Tenant that Tenant has failed to pay rent when due; (b) the
failure to perform any of Tenant's agreements or obligations hereunder (exclusive of a
default in the payment of money) where such default shall continue for a period of thirty
(30) days after written notice thereof from City to Tenant which notice shall be deemed
to be the statutory notice so long as such notice complies with statutory requirements,
or in the event such failure cannot be cured within such 30 day period, Tenant has not
Palm Springs Unified School District Page 14 of 14
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commenced curative measures within such period and Tenant is not diligently pursuing
same; (c) the vacation or abandonment of the Demised Promises by Tenant; (d) the
making by Tenant of a general assignment for the benefit of creditors; (e) the filing by
Tenant of a voluntary petition in bankruptcy or the adjudication of Tenant as a bankrupt;
(f) the appointment of a receiver to take possession of all or substantially all the assets
of Tenant located at the Demised Premises or of Tenant's leasehold interest in the
Demised Premises; (g) the filing by any creditor of Tenant of an involuntary petition in
bankruptcy which is-not dismissed within sixty (60) days after filing; or (h) the
attachment, execution or other judicial seizure of all or substantially all of the assets of
Tenant or Tenant's leasehold where such an attachment, execution or seizure is not
discharged within sixty (60) days. Any repetitive failure by Tenant to perform its
agreements and obligations hereunder, though intermittently cured, shall be deemed an
incurable default. Two (2) breaches of the same Covenant within a sixty (60) day
period, a notice having been given pursuant to (a) or (b) above for the first breach, or
three (3) of the same or different breaches at any time during the term of this Lease for
which notices pursuant to (a) or (b) above were given for tile first two (2) breaches shall
conclusively be deemed to be an incurable repetitive failure by Tenant to perform its
obligations hereunder.
In the event of any such default or breach by Tenant, City may at any time
thereafter, without further notice or demand, rectify or cure such default, and any sums
expended by City for such purposes shall be paid by Tenant to City upon demand and
as additional rental hereunder. In the event of any such default or breach by Tenant,
City shall have the right (i) to continue the lease in full force and effect and enforce all of
its rights and remedies under this Lease, including the right to recover the rental as it
becomes due under this Lease, or (ii) City shall have the right at any time thereafter to
elect to terminate the Lease and Tenant's right to possession there under. Upon such
termination, City shall have the right to recover from Tenant:
(a) The worth at the time of award of the unpaid rental which had
been earned at the time of termination;
(b) The worth at the time of award of the amount by which the
unpaid rental which would have been earned after termination until the time of award
exceeds the amount of such rental loss that the Tenant proves could have been
reasonably avoided;
(c) The worth at the time of award of the amount by which the
unpaid rental for the balance of the term after the time of award exceeds the amount of
such rental loss that the Tenant proves could be reasonably avoided; and
(d) Any other amount necessary to compensate the City for all the
detriment proximately caused by Tenant's failure to perform its obligations under the
lease or which in the ordinary course of things would be likely to result there from.
The "worth at the time of award" of the amounts ref erred to in
subparagraphs (i) and (ii) above shall be computed by allowing interest at three percent
Palm Springs Unified School District Page 15 of 15
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(3%) over the prime rate then being charged by Bank of America, N.A. but in no event
greater than the maximum rate permitted by law. The worth at the time of award of the
amount referred to in subparagraph (iii) above shall be computed by discounting such
amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of
award plus one percent (1%), but in no event greater than ten percent (10%).
As used herein "rental" shall include the Monthly Rental, percentage rental
equal to the average percentage rental paid or payable by Tenant for the last twelve
(12) months or such lesser period as Tenant has been open for business, other sums
payable hereunder which are designated "rental" or "additional rental" and any other
sums payable hereunder on a regular basis such as reimbursement for real estate
taxes.
Such efforts as City may make to mitigate the damages caused by
Tenant's breach of this Lease shall not constitute a waiver of City's right to recover
damages against Tenant hereunder, nor shall anything herein contained affect City's
right to indemnification against Tenant for any liability arising prior to the termination of
this Lease for personal injuries or property damage, and Tenant hereby agrees to
indemnify and hold City harmless from any such injuries and damages, including all
attorney's fees and costs incurred by City in defending any action brought against City
for any recovery thereof, and in enforcing the terms and provisions of this
indemnification against Tenant.
Notwithstanding any of the foregoing, the breach of this Lease by Tenant,
or an abandonment of the Demised Premises by Tenant, shall hot constitute a
termination of this Lease, or of Tenant's right of possession hereunder, unless and until
City elects to do so, and until such time City shall have the right to enforce all of its
rights and remedies under this Lease, including the right to recover rent, and all other
payments to be made by Tenant hereunder, as they become due. Failure of City to
terminate this Lease shall not prevent City from later terminating this Lease or constitute
a waiver of City's right to do so.
11.2 No Waiver. Acceptance of rental hereunder shall not be deemed a
waiver of any default or a waiver of any of City's remedies.
11.3 City's Default. City shall not be in default unless City f ails to
perform obligations required of City within a reasonable time, but In no event later than
thirty (30) days after written notice by Tenant to City and to the holder of any first
mortgage or deed of trust covering the Premises whose name and address shall have
theretofore been furnished to Tenant in writing, specifying wherein City has failed to
perform such obligation; provided, however, that if the nature of City's obligation is such
that more than thirty (30) days are required for performance then City shall not be
deemed in default if City commences performance within a (30) day period and
thereafter diligently prosecutes the same to completion. In no event shall Tenant have
the right to terminate this Lease as a result of City's default and Tenant's remedies shall
be limited to damages and/or an injunction.
Palm Springs Unified School District Rage 16 of 16
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12.CONDEMNATION.
In the event a condemnation or a transfer in lieu thereof results in a taking
of any portion of the Demised Premises. City may, or in the event a condemnation or a
transfer in lieu thereof results in a taking of ten percent (10%) or more of the Demised
Premises, Tenant may, upon written notice given within thirty (30) days after such taking
or transfer in lieu thereof, terminate this Lease. Tenant shall not be entitled to share in
any portion of the award and Tenant hereby expressly waives any right or claim to any
part thereof. Tenant shall, however, have the right to claim and recover, only from the
condemning authority (but not from City), any amounts necessary to reimburse Tenant
for the cost of removing stock and fixtures. If this Lease is not terminated as above
provided, City shall use a portion of the condemnation award to restore the Demised
Premises.
13.MISCELLANEOUS.
13.1 Entry and Inspection. Tenant shall permit City and his agents to
enter into and upon the Demised Premises at all reasonable times following prior notice
by City (except in emergencies) for the purpose of inspecting the same or for the
purpose of maintaining the Demised Premises as required by the terms of this Lease or
for tile purpose of posting notices of non-liability for alterations, additions or repairs, or
for the purpose of placing upon the property in which the Demised Premises are located
any usual or ordinary "For Sale" signs or any signs for public safety as determined by
City. City shall be permitted to do any of the above without any rebate of rent and
without any liability to Tenant for any loss of occupation or quiet enjoyment of the
Demised Premises thereby occasioned. Tenant shall permit City, at any time within six
(6) months prior to the expiration of this Lease, to place upon the Demised Premises
any usual or ordinary "For Lease" signs, and during such six (6) month period City or his
agents may, during normal business hours, enter upon said Demised Premises and
exhibit same to prospective tenants.
13.2 Estoppel Certificate. If, as a result of a proposed sale, assignment,
or hypothecation of the Demised Premises or the land there under by City, or at any
other time, an estoppel certificate shall be requested of Tenant, Tenant agrees, within
ten (10) days thereafter, to deliver such estoppel certificate in the form attached hereto
as Exhibit "D', addressed to any existing or proposed mortgagee or proposed
purchaser, and to the City provided, and only to the extent, the statements in such letter
are accurate at such time. Tenant shall be liable for any loss or liability resulting from
any incorrect information certified, and such mortgagee and purchaser shall have the
right to rely on such estoppel certificate and financial statement.
13.3 Jurisdiction and Venue. The parties hereto agree that the State of
California is the proper jurisdiction for litigation of any matters relating to this Lease and
service mailed to the address of tenants set forth herein shall be adequate service for
such litigation. The parties further agree that Riverside County, California is the proper
place for venue as to any such litigation and Tenant agrees to submit to the personal
jurisdiction of such court in the event of such litigation.
Palm Springs Unified School District Page 17 of 17
Hangar Lease Agreement 2
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13.4 Partial Invalidity. If any term, covenant, condition or provision of
this Lease is held by a court of competent jurisdiction to be invalid, void, or
unenforceable, the remainder of the provisions hereof shall remain in full force and
effect and shall in no way be affected, impaired or invalidated thereof.
13.5 Successors in Interest. The covenants herein contained shall,
subject to the provisions as to assignment, apply to and bind the heirs, successors,
executors, administrators and assigns of all the parties hereto; and all of the parties
hereto shall be jointly and severally liable hereunder,
13.6 No Oral Agreements. This (i) Lease covers in full each and every
agreement of every kind or nature whatsoever between the parties hereto concerning
this Lease, (ii) supersedes any and all previous obligations, agreements and
understandings, if any, between the parties, oral or written, and (iii) merges all
preliminary negotiations and agreements of whatsoever kind or nature herein. Tenant
acknowledges that no representations or warranties of any kind or nature not
specifically set forth herein have been made by City or its agents or representatives.
13.7 Authority. In the event that either party is a corporation or a
partnership, each individual executing this Lease on behalf of said corporation or said
partnership, as the case may be, represents and warrants that he or she is duly
authorized to execute and deliver this Lease on behalf of said corporation or
partnership, in accordance with a duly adopted resolution of the Board of Directors, if a
corporation, or in accordance with the Partnership Agreement, if a partnership, and that
this Lease is binding upon said corporation or partnership in accordance with its terms.
Each party represents and warrants to the other that the entering into this Lease does
not violate any provisions of any other agreement to which such party is bound.
13.8 Relationship of Parties. The relationship of the parties hereto is
that of City and Tenant, and it is expressly understood and agreed that City does not in
any way or for any purpose become a partner of Tenant in the conduct of Tenant's
business or otherwise, or a joint venturer with Tenant, and that the provisions of this
Lease and the agreements relating to rent payable hereunder are included solely for
The purpose of providing a method whereby rental payments are to be measured and
ascertained.
13.9 Nondiscrimination. Tenant herein covenants by and for itself, its
heirs, executors, administrators and assigns and all persons claiming under or through
it, and this Lease is made and accepted upon and subject to the following conditions:
That there shall be no discrimination against or segregation of any person or group of
persons on account of race, sex, marital status, color, creed, national origin or ancestry,
in the leasing, subleasing, transferring, use, occupancy, tenure or enjoyment of the
Demised Premises herein leased, nor shall the Tenant itself, or any person claiming
under or through it, establish or permit any such practice or practices. of discrimination
or segregation with reference to the selection, location, number, use or occupancy of
tenants, lessees, sublessees, subtenants or vendees in the Demised Premises.
Pahn Springs Unified School District Page 18 of 18
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13.10 Notice. Wherever in this Lease it shall be required or permitted that
notice and demand be given or served by either party to this Lease to or on the other,
such notice or demand shall be given or served in writing and shall nor be deemed to
have been duly given or served unless in writing, and personally served or forwarded by
certified mail, postage prepaid, addressed, if to City, to City of Palm Springs, P.O. Box
2743, Palm Springs, California, 92263, Attn: City Manager, and if -to Tenant, as
specified in Section 1.7. Either party may change the address set forth herein by written
notice by certified mail to the other. Any notice or demand given by certified mail shall
be effective one (1) day subsequent to mailing.
13.11 Waiver. No delay or omission in the exercise of any right or
remedy by a non-defaulting party shall impair such right or remedy or be construed as a
waiver. A party's consent to or approval of any act by the other party requiring the
party's consent or approval shall not be deemed to waive or render unnecessary the
other party's consent to or approval of any subsequent act. Any waiver by either party
of any default must be in writing and shall not be a waiver of any other default
concerning the same or any other provision of this Lease.
13.12 Exhibits and Addenda. The Exhibits and Addenda attached to this
Lease are made a part hereof as if fully set forth herein. In the event of a conflict
between the terms and provisions of an Addenda and the terms and provisions of this
Lease, the terms and provisions of the Addenda shall prevail.
13.13 At Expiration of Termination of Lease. Upon the expiration or
sooner termination of this Lease, Tenant shall promptly deliver to City a quitclaim deed
conveying its interest in the Demised Premises to City.
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Hangar Lease Agi cement I /, �
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EXHIBIT"A"
LEASE PARCEL NO. 13
A portion of Lot 2 in Section 13 of Palm Valley Colony Lands, as shown by map on file in Book
14, page 652 of Maps, Records of San Diego County, California, in the City of Palm Springs,
County of Riverside, State of California; described as follows:
Commencing at the northeast corner of Lot 1 of said Palm Valley Colony Lands, being the
northeast corner of Section 13, Township 4 South, Range 4 East, San Bernardino Meridian;
Thence South 8902720" West, a distance of 1237.82 feet along the North line of said Section 13;
Thence South 00°40'40" East, a distance of 357.98 feet to the point of beginning.
Thence South 00°40'40" East, a distance of 247.01 feet;
Thence North 89053'08" East, a distance of 427.00 feet;
Thence North 00006'52" West, a distance of 247.00 feet;
Thence South 89"53'08" West, a distance of 429.43 feet to the point of beginning.
Contains 2.43 Acres, more or less.
EXHIBIT"A"
EXHIBIT"B"
PLOT PLAN OF DEMISED PREMISES
School District Parcel
r 2.43 ACRE 1
I I O LE A�
o NOT T SCALE
O
I
N89053'08"E 427.00'
I
Tenant Leasehold shall consist of those areas
Parcel i of the building outlined above (grey shaded area).
I I
-------------------------------------
I I
I I
I I j
I I
---------------'
j Parcel
I
Parcel
I I
I
I I I
I
I
EXHIBIT"B"
TO LEASE G
EXHIBIT "C"
RULES AND REGULATIONS
1. All loading and unloading of goods shall be done only at the times, in the areas and
through the entrances reasonably designated for such purposes by Landlord.
2. The delivery or shipping of merchandise, supplies and fixtures to and from the
Demised Premises shall be subject to such rules and regulations as in the reasonable
judgment of Landlord are necessary for the proper operations of the Demised Premises
or of the Property generally.
3. All of Tenant's refuse and rubbish shall be removed to central trash bins located in
the Property, at Tenant's sole cost and expense.
4. No radio or television or other similar device audible outside the Demised Premises
shall be installed without obtaining in each instance the written consent of Landlord. No
aerial shall be erected on the roof or exterior walls of the Demised Premises or on the
grounds of the Property without first obtaining in each instance the written consent of
Landlord which consent shall not be unreasonably withheld or delayed. Any aerial so
installed without such written consent shall be subject to removal without notice at any
time.
5. No loudspeakers, televisions, phonographs, radios or other devices shall be used in a
manner, so as to be heard or seen outside of the Demised Premises without first
obtaining in each instance written consent of Landlord.
6. The outside sidewalks and loading areas immediately adjoining the Demised
Premises shall be kept clean and free from dirt and rubbish by Tenant to the reasonable
satisfaction of Landlord, and Tenant shall not place or permit any obstructions or
merchandise in such areas, except to the extent specifically permitted by the provisions
of Tenant's Lease.
7. Tenant shall not burn any trash or garbage of any kind in or about the Demised
Premises or the Property generally.
8. Tenant will not allow animals, except seeing-eye dogs, in, about or upon the Demised
Premises.
9. Tenant shall not use, and shall not allow anyone else to use, the Demised Premises
as a habitation. Such prohibition shall include, without limitation, sleeping, eating or
bathing.
10. Tenant shall not place any rubbish or other matter outside any building within the
Property, except in such containers as are authorized from time to time by Landlord.
Palm Springs Unified School Dishiet Page 23 of 23
Hangar Lease Agreement
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EXHIBIT "D"
ESTOPPEL CERTIFICATE
Tenant: Palm Springs Unified School District
Landlord: City of Palm Springs, a municipal corporation
Date of Lease: July 1 , 2003
Demised Premises: Per Exhibit "A" & "B" herein — Hangar Lease
To:
The undersigned hereby certifies as follows:
1. The undersigned is the tenant ("Tenant") under the above-referenced lease ("Lease")
covering the above-referenced premises ("Demised Premises").
2. The Lease constitutes the entire agreement between landlord under the Lease
("Landlord") and Tenant with respect to the Demised Premises and the Lease has
not been modified, changed, altered or amended in any respect except as set forth
above.
3. The term of the lease commenced on July 1, 2003 and including any presently
exercised option or renewal term, will expire on
Tenant has accepted possession of the
Demised Premises and is the actual occupant in possession thereof and has not
sublet, assigned or hypothecated its leasehold interest. All improvements to be
constructed on the Demised Premises by Landlord have been completed and
accepted by Tenant and any tenant construction allowances have been paid in full.
4. As of this date, to the best of Tenant's knowledge, there exists no breach or default,
nor state of facts which, with notice, the passage of time, or both, would result in a
breach or default on the part of either Tenant or Landlord. To the best of Tenant's
knowledge, no claim, controversy, dispute, quarrel or disagreement exists between
Tenant and Landlord.
Palm Springs Unified School District Page 24 Of 24
Hangar Lease Agreement
5. Tenant is currently obligated to pay Monthly Rent in installments of $
per month, and such monthly installments have been paid not
more than one month in advance. To the best of Tenant's knowledge, no other rent
has been paid in advance and tenant has no claim or defense against Landlord
under the Lease and is asserting no offsets or credits against either the rent or
Landlord.
6. Tenant has no option or preferential right to lease or occupy additional space within
the Property of which the Demised Premises are a part. Tenant has no option or
preferential right to purchase all or any part of the Demised Premises nor any right
or interest with respect to the Demised Premises other than as tenant under the
Lease. Tenant has no right to renew or extend the term of the Lease except as set
forth in the Lease.
7. Tenant has made no agreements with Landlord or its agent or employees
concerning free rent, partial rent, rebate of rental payments or any other type of rent
or other concession except as expressly set forth in the Lease.
8. There has not been filed by or against Tenant a petition in bankruptcy, voluntary or
otherwise, any assignment for the benefit of creditors, any petition seeking
reorganization or arrangement under the bankruptcy laws of the United States, or
any state thereof, or any other action brought under said bankruptcy laws with
respect to Tenant.
9. All insurance, which Tenant is required to maintain under the Lease, has been
obtained by Tenant and is in full force and effect and all premiums with respect
thereto have been paid.
Dated this day of 20_
Palm Springs Unified School District Page 25 of 25
Hangar Lease Agreement g
C;Z
MINUTE ORDER NO.
APPROVING LEASE NO. BETWEEN THE PALM
SPRINGS UNIFIED SCHOOL DISTRICT AND THE CITY OF
PALM SPRINGS FOR A HANGAR LEASE AT THE PALM
SPRINGS INTERNATIONAL AIRPORT.
I HEREBY CERTIFY that this Minute Order, approving Lease No.
between the Palm Springs Unified School District and the City of Palm Springs
for a Hangar Lease at the Palm Springs International Airport,was adopted by the
City Council of the City of Palm Springs, California, in a meeting thereof held on
the 21" day of July, 2003.
PATRICA A SANDERS
City Clerk