HomeMy WebLinkAboutZACKS TOO - 2002-10-21CITY OF HUNTINGTON BEACH
2000 MAIN STREET
CALIFORNIA 92648
OFFICE OF THE CITY CLERK
` CONNIE BROCKWAY
CRY CLERK
LETTER OF TRANSMITTAL OF ITEM APPROVED BY THE CITY COUNCIL/
REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH
DATE: Qc/ob� 0?8, )Cyoa.
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See Attached Action Agenda Item
Date of Approval /o -dl 2-
Enclosed For Your Records Is. An°Executed Copy Of The Above Referenced Agenda Item.
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Connie Brockway
City Clerk
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Council/Agency Meeting Held:
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City Clerk's Signature
Approved 0 Conditionally Approved ❑ Denied
Council Meeting Date: October 21, 2002
Department ID Number: AS 02-38
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CITY OF HUNTINGTON BEACH
REQUEST FOR COUNCIL ACTION a =-
SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
SUBMITTED BY: RAY SILVER, City AdministratoraW r,
PREPARED BY: CLAY MARTIN, Director of Administrative Services �7
JIM B. ENGLE, Acting Director of Community Servic
SUBJECT: APPROVE STANDARD LEASE WITH MICHAEL ALI AR THE
ZACK'S TOO BEACH CONCESSION
Fs-t,t,me,-t,f
Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s)
Statement of Issue: Staff has negotiated a new lease with Michael Ali for the Zack's Too
beach concession, using the City's standard concession lease.
Funding Source: Not applicable.
Recommended Action: Authorize the Mayor and City Clerk to execute a lease between
the City of Huntington Beach and Michael Ali for the Zack's Too beach concession, based on
the terms and conditions presented herein.
Alternative Action(s):
1. Do hot approve the lease with Michael Ali for the Zack's Too beach concession based
on the terms and conditions presented herein.
2. Approve a lease agreement with Michael Ali for the Zack's Too beach concession based
on modified terms and conditions.
Analysis: On January 1, 1995, the City entered into a lease agreement with Michael Ali to
operate a beach concession at 405 Pacific Coast Highway. The concession, known as
Zack's Too, is popular with beach patrons and is considered a well run, highly successful
concession operation. This lease has since expired and Mr. Ali has been operating on a
month -to -month tenancy as provided for in the original lease.
In February 2002, the City Council approved the form of a standard lease agreement and
directed staff to use this standard lease for all new or renewed beach and park concessions.
Mr. Ali has agreed to all the terms and conditions set forth in the standard lease agreement
(attached).
REQUEST FOR COUNCIL ACTIC3N
MEETING DATE: October 21, 2002 DEPARTMENT ID NUMBER: AS 02-38
The Community Services Department, which oversees the operation of all beach
concessions, along with the Real Estate Division and the City Attorney's Office, recommend
approval of this lease.
Environmental Status: N/A
Attachment(s):
RCA Author: BODEK 5445
D:\Documents and Settings\bodeka\My Documents\RCA Letters\ZacksToo.doc -2-
10/1 /2002 11:52 AM
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LEASE BETWEEN
THE CITY OF HUNTINGTON BEACH
AND MICHAEL ALI
FOR ZACK'S TOO
Table of Contents
PA('.F
Superseding of Prior Lease......................................................................................
I
Grant of Concession on the Premises......................................................................I
Reservations, Encumbrances and Rights-of-Way....................................................2
Timeof Essence.......................................................................................................3
Term..........................................................................................................................�
Conditions of Premises as Is....................................................................................3
Duration of Public Facilities....................................................................................4
Additions, Alterations and Removal........................................................................4
City's Contract Administrator..................................................................................4
Rent..............................................................................................................
5
LateCharge and Penalty..........................................................................................5
Gross Sales Defined.................................................................................................6
Gross Sales Exclusions............................................................................................7
Booksand Records..................................................................................................8
Statement of Gross Sales/Audit...............................................................................9
SecurityDeposit.......................................................................................................10
Use of Coca-Cola Products......................................................................................I
I
Quality of Sales, Rentals and Services....................................................................I
I
Indemnification, Defense and Hold Harmless Agreement......................................12
Workers' Compensation and Employers' Liability Insurance..................................1.)
General Public Liability Insurance.....•.....................................................................13
PropertyInsurance...................................................................................................14
Increase in Amount of General Public Liability and Property Insurance................16
Certificates of Insurance; Additional Insured Endorsements..................................16
Insurance Hazards....................................................................................................17
Maintenance of Premises.........................................................................................17
RentCredit...............................................................................................................19
Damage, Destruction or Nuisance...........................................................................20
Taxes........................................................................................................................20
Payments of Obligations..........................................................................................20
Utilities and Services...............................................................................................21
BusinessLicense......................................................................................................21
Signs, Advertising and Approval of Name..............................................................21
No Assigning, Subleasing or Encumbering.............................................................22
Terms Binding on Successors..................................................................................24
Default......................................................................................................................24
Remedies..................................................................................................................26
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38 Cumulative Remedies..............................................................................................30
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Waiver of Default....................................................................................................31
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City's Defaults/Lessee's Remedy.............................................................................31
41
Consent....................................................................................................................31
42
Holdover..................................................................................................................31
43
Waiver of Claims.....................................................................................................32
44
Inspection of Premises.........................................................................................:...32
45
City's Right to Lease Buyout...................................................................................33
46
Photography.............................................................................................................36
47
Hazardous Substances..............................................................................................36
48
Nondiscrimination....................................................................................................37
49
Sale of Alcoholic Beverages and Entertainment Prohibited....................................38
50
Liens.........................................................................................................................39
51
Installation and Removal of Trade Fixtures.............................................................39
52
Destruction...............................................................................................................)
53
No Abatement of Rent During Repair Work...........................................................41
54
Eminent Domain
55
Relocation and Assistance, Business Goodwill and Leasehold Bonus Value .........
42
56
Quitclaim Deed........................................................................................................42
57
Restoration and Surrender of Premises/Title to Improvements...............................43
58
Force Majeure - Unavoidable Delays......................................................................44
59
City's Option to Close the Premises.........................................................................44
60
Deliveries of Supplies..............................................................................................45
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Employee Parking....................................................................................................45
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Conflict of Interest...................................................................................................45
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Notice.......................................................................................................................46
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Compliance with Laws............................................................................................46
65
Interpretation of this Lease......................................................................................47
66
Survival....................................................................................................................47
67
Modification.............................................................................................................47
68
Section Headings.....................................................................................................48
69
Brokers.....................................................................................................................48
70
Independent Contractor............................................................................................48
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Attorney's Fees.........................................................................................................48
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Legal Services Subcontracting Prohibited...............................................................49
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Governing Law........................................................................................................49
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Duplicate Original....................................................................................................49
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Entirety.....................................................................................................................49
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LEASE BETWEEN
THE CITY OF HUNTINGTON BEACH
AND MICHAEL ALI
FOR ZACK' S TOO
THIS LEASE (the "Lease") is made and entered into effective May 1, 2002 by and
between the CITY OF HUNTINGTON BEACH, a municipal corporation of the State of
California ("City") and Michael Ali, a sole proprietor ("Lessee").
WHEREAS, City wishes to lease certain real property (the "Property"), also known as
Zack's Too, whose address is 405 Pacific Coast Highway, Huntington Beach, California 92648,
together with a building and other related improvements (collectively referred to as the
"Improvements"). The term "Premises" as used in this Lease shall mean both the Property and
the Improvements. Lessee desires to lease the Premises in the manner set forth below.
NOW, THEREFORE, the parties covenant and agree as follows:
SECTION 1. SUPERSEDING OF PRIOR LEASE
This Lease shall supersede and replace any existing lease agreement(s) for the Premises
currently entered into by and between the parties and all supplemental agreement(s) entered into
by and between the parties regarding the existing lease agreement(s).
SECTION 2. GRANT OF CONCESSION ON THE PREMISES
City, pursuant to the terms of this Lease, grants to Lessee for the purposes stated herein,
the right, privilege and duty to equip, operate and maintain a concession open to the public
located on the Premises (hereinafter sometimes referred to as the "Concession"). Lessee shall
not use the Premises for any other purpose or business. A map depicting the Premises is set forth
in Exhibit "A", which is attached hereto and incorporated herein by this reference. This Lease
is not intended to confer third -party beneficiary status to anyone.
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SECTION 3. RESERVATIONS, ENCUMBRANCES AND RIGHTS -OF -WAY
(a) City expressly reserves all natural resources in, on, or two hundred fifty (250) feet
under the Premises, including, without limitation, oil, coal, natural gas and other
hydrocarbons, minerals, aggregates, timber and other geothermal resources, as
well as the right to grant leases or other contractual arrangements in and over the
Premises for the extraction of such natural resources. However, such leasing or
other arrangement shall be neither inconsistent nor incompatible with the rights or
privileges of Lessee under this Lease.
(b) City expressly reserves a right to enter upon the Premises with as much advance
written, verbal or electronic notice as possible to Lessee for any reason associated
with public health, safety or welfare, or for the protection of life, limb or property.
In all other cases unless otherwise specifically set forth herein, City reserves the
right for such entry but City shall give Lessee at least twenty-four (24) hours
advance written, verbal or electronic notice. City shall have a right of reasonable
access to the Premises across Lessee owned, controlled or occupied lands adjacent
to the Premises, if any, for any purpose associated with this Lease.
(c) City expressly reserves the right to lease, convey, or encumber the Premises, in
whole or in part, for any purpose not inconsistent or incompatible with the rights
or privileges of Lessee under this Lease. In addition, Lessee agrees to subordinate
the Lease to any existing or future City financing regarding the Premises or any
portion thereof. Lessee also agrees to cooperate and provide any documentation
necessary for City to obtain any such financing.
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(d) This Lease is subject to pre-existing contracts, leases, licenses, easements,
encumbrances and claims affecting the Premises and it is made without warranty
by City of title, condition or fitness of the land for the stated or intended use.
SECTION 4. TIME OF ESSENCE
Time shall be of the essence of this Lease and each and all of its terms, covenants or
conditions in which performance is a factor.
SECTION 5. TERM
This Lease shall commence at 12:01 a.m. on May 1, 2002, for a ten (10) year term, which
shall end at 11:59 p.m. on April 30, 2012, unless extended, or sooner terminated, as provided for
herein. For every Ten Thousand Dollars ($10,000.00) of improvements which Lessee makes to
the Premises, which improvements must be made pursuant to the terms of this Lease, including,
without limitation, obtaining City's approval pursuant to Section 8 of this Lease, Lessee shall be
granted a one (1) year extension to the term of the Lease up to a maximum of five (5) years.
SECTION 6. CONDITIONS OF PREMISES AS IS
The taking of possession of the Premises by Lessee shall, in itself, constitute
acknowledgment that the Premises are in good and tenantable condition. Upon taking possession
of the Premises, Lessee agrees to accept the Premises in their presently existing condition, "as
is", and agrees that City shall not be obligated to make any alterations, additions or betterments
thereto.
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SECTION 7. DURATION OF PUBLIC FACILITIES
By entering into this Lease, City makes no stipulation as to the type, size, location or
duration of public facilities (excluding the Premises), including, without limitation, any City
parking lots to be maintained on property owned, controlled or occupied by City.
SECTION 8. ADDITIONS, ALTERATIONS AND REMOVAL
(a) No modifications, alterations or additions to the Premises, including, without
limitation, construction of Improvements or changes to structural design,
landscape design, or interior or exterior furnishings, shall be constructed or made
by Lessee without Lessee first obtaining the prior written approval of City, which
will not be unreasonably withheld.
(b) Except as provided under this Lease, no alteration or removal of existing
Improvements on or natural features of the Premises shall be undertaken without
Lessee first obtaining the prior written approval of City.
(c) Lessee's obligation to obtain City's prior written approval is separate and
independent of Lessee's obligation to obtain any permits from City, such as,
without limitation, a building permit.
SECTION 9. CITY'S CONTRACT ADMINISTRATOR
City's Director of Community Services, or his or her designee, shall be City's Contract
Administrator for this Lease with the authority to act on behalf of City for the purposes of this
Lease, and all City approvals and notices required to be given herein to City shall be so directed
and addressed.
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SECTION 10. RENT
Lessee agrees to pay to City as rent (the "Rent") for the use and occupancy of the
Premises a sum equal to the following percentages of the amount of "Gross Sales", as defined in
Section 12 below:
$0 - $100,000.00 of Gross Sales = 7.5%;
$100,000.01 - $150,000.00 of Gross Sales = 8.5%;
Over $150,000.00 of Gross Sales = 10.5%.
Lessee shall pay the Rent monthly to City at the City Treasurer's Office, P.O. Box 711,
Huntington Beach, California, 92648, or at such other place or places as City may from time -to -
time designate by written notice delivered to Lessee. Lessee shall pay the Rent, which must be
received by the City Treasurer within fifteen (15) calendar days after the end of the month for
which the Rent is being paid, or on the next business day if the fifteenth day falls on a weekend
or holiday.
SECTION 11. LATE CHARGE AND PENALTY
If the Rent is not received by the City Treasurer within twenty (20) calendar days after
the end of the month for which the Rent is being paid, or the next business day if the twentieth
day falls on a weekend or holiday, Lessee shall pay the following late charge and penalty: (1) a
late charge of ten percent (10%) shall be applied to any outstanding balance after any payment
hereunder is due but unpaid; and (2) one and a half percent (1 ``/z%) penalty per month shall be
added for each month the Rent is due but unpaid. With respect to any other payments required
by Lessee, a one and a half percent (1 '/2%) penalty per month shall be added for each month
such payment hereunder is due but unpaid.
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SECTION 12. GROSS SALES DEFINED
For the purpose of this Lease, the term "Gross Sales" shall mean the total price of all
merchandise, food and beverages, or services sold or rendered, or equipment rented, in, on, or
from the Premises by Lessee, or anyone contracting .with Lessee, including, without limitation,
its agents or sublessees (collectively or individually, "Lessee Party(ies)"), whether wholesale or
retail, whether for cash or on credit, and if on credit whether or not paid, and whether in
exchange for any other product, commodity, service, commercial paper or forbearance, and shall
include, without limitation, the following:
(a) All revenues, receipts, commissions or proceeds from on-line sales by Lessee
Party(ies), and/or from all public telephones, vending, weighing and all other
machines owned, operated, or leased to or by Lessee Party(ies) in, on, or from the
Premises;
(b) All revenues, receipts, commissions or proceeds from sales based on orders
solicited or taken, in, on, or from the Premises for merchandise, food and
beverages, or services to be delivered or rendered off, or from sources outside, the
Premises, including, without limitation, all orders taken in, on, or from the
Premises although the orders may be filled elsewhere;
(c) All revenues, receipts, commissions or proceeds from the renting of equipment of
any kind in, on, or from the Premises; and
(d) All revenues, receipts, commissions or proceeds generated from offsite but
delivered through the Concession.
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(e) All revenues, receipts, commissions or proceeds made by Lessee Party(ies) or
their employees or others acting on their behalf for the rendition of services of any
kind whatsoever, made in, on, or from the Premises.
(f) All other revenues, receipts, commissions or proceeds generated by, arising or
derived whatsoever from the use of the Premises or derived whatsoever from any
business conducted in, on, or from the Premises.
For purposes of computing the Gross Sales figure on which to calculate the Rent, the
amount of Gross Sales shall start over at zero dollars on January 1 of each year. If the Lease
commences on any date other than January 1, the Gross Sales calculation begins from such
commencement date and runs through December 31 of such Lease commencement year.
SECTION 13. GROSS SALES EXCLUSIONS
Gross Sales shall not include the following items, and Lessee may deduct such items
from Gross Sales to the extent they have been included therein or have been included in a prior
computation of Gross Sales on which the Rent has been paid under this Lease to City:
(a) Any sales, excise or other taxes otherwise includable in Gross Sales and which
become part of the total price of merchandise, food and beverages, or services
sold or rendered, or equipment rented, in, on, or from the Premises where Lessee
must account for and remit the taxes to the government entity or entities which
impose them, but only if such taxes are added to the total price and collected from
customers;
(b) Any transfer of trade inventory from the Premises to the manufacturer or supplier
from whom it was obtained by Lessee;
(c) Sales of Trade Fixtures (as defined in Section 51 below);
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(d) Sums and credits received in the settlement of claims for loss of or damage to
trade inventory or Trade Fixtures; and
(e) Any sales resulting in a cash or credit refund to a customer in the ordinary course
of business.
SECTION 14. BOOKS AND RECORDS
Lessee shall keep true and accurate books and records showing all of its business
transactions in separate records of account for the Concession in a manner acceptable to City,
and City and/or its designated representatives shall have the right, at all reasonable times, to
inspect such books and records including, without limitation, State of California sales or use tax
returns or other State return records, and Lessee hereby agrees that all such records and
instruments shall promptly be delivered and made available to City and/or its designated
representatives within thirty (30) days of receiving written request therefor. Lessee shall furnish
to City and/or its designated representatives copies of its quarterly California sales and use tax
returns at the time each is filed with the State of California.
The books and records shall show the total amount of Gross Sales made each calendar
month in, on, or from the Premises and any exclusions listed in Section 13 above. All sales and
charges shall be recorded by means of cash registers which display the amount of the transaction
certifying the amount recorded. The register shall be equipped with devices which log in daily
sales totals and which shall record on tapes the transaction numbers and sales details. At the end
of each day the tape shall record the total sales for that day. Lessee agrees to maintain on the
Premises, or another location subject to the prior written approval of City, all records, books of
account and cash register tapes, showing, or in any way pertaining to the Gross Sales made in,
on, or from the Premises during such calendar month, including, without limitation, State of
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California sales or use tax returns or other State tax returns, for a period of five (5) years
following the close of each calendar month.
SECTION 15. STATEMENT OF GROSS SALES/AUDIT
At the time specified in Section 10 of this Lease for the payment of the Rent, Lessee shall
deliver to City a true and accurate statement signed by Lessee or by an authorized employee of
Lessee showing the total Gross Sales and any exclusions listed in Section 13 above made during
the preceding calendar month and the amount of the Rent then being paid calculated on such
Gross Sales pursuant to this Lease. The acceptance by City of any monies paid to City by Lessee
as the Rent, as shown by any statement furnished by Lessee, shall not be construed as an
admission of the accuracy of the statement, or of the sufficiency of the amount of the Rent
payment, and City shall be entitled to review the adequacy of such payment as set forth herein.
By the end of each January, Lessee shall deliver to City a year-end statement showing the total
amount of Gross Sales made in, on, or from the Premises in each month of the preceding year,
the total of any exclusions, the total Rent paid to City for each of those months, all with year-end
totals. City may at any time within three (3) years after receiving the year-end statement, at its
sole cost and expense, cause all records, books of account and cash register tapes for the year
purportedly covered by the statement, to be audited by City or an accountant selected by City.
Lessee shall, within thirty (30) days of receiving written notice of City's desire for such an audit,
deliver and make available all such records, books of account and cash register tapes to City or
its designated representative for City's use in the audit and/or for copying. If the audit discloses
that Gross Sales were understated and/or exclusions overstated, Lessee shall immediately pay the
additional Rent, together with a penalty thereon from the date it was due at the penalty rate set
forth in Section 11 above. Furthermore, Lessee shall promptly on demand reimburse City for the
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full cost and expense of the audit should the audit disclose that the questioned year-end statement
understated Gross Sales (including an overstatement of exclusions) or the Rent by any amount
greater than Two Hundred Fifty Dollars ($250.00). City further reserves the right to examine
and audit all such records, books of account and cash register tapes at any time during the three
(3) year period following the expiration or termination of this Lease. In addition, City shall have
the right to enter upon the Premises during business hours and with two (2) hours advance
written, verbal or electronic notice to Lessee to perform any audit or inspection function with
respect to this Lease.
Lessee, its bookkeeper and/or accountant shall respond to all questions and inquiries of
City with respect to the books, records, statements and other documentation being examined, and
shall promptly provide other further documentation as may be required by City. City is entitled
to take statements by deposition under oath of Lessee, its officers, bookkeepers and/or
accountants or any person who prepared the books, records, statements and other documentation
required to be provided by Lessee under this Lease.
SECTION 16. SECURITY DEPOSIT
Upon execution hereof, Lessee shall pay and maintain at all times during the entire term
of this Lease or any renewals or extensions thereof or during any holdover period, a security
deposit with City in a sum of not less than Two Thousand Five Hundred Dollars ($2,500.00) to
guarantee all of Lessee's obligations, liabilities, duties and responsibilities under the Lease,
including, without limitation, the repair and maintenance of the Premises as provided herein.
Such deposit shall be in the form of a cash bond or an assignment of certificate of deposit (the
"CD") or savings account to City, and shall be provided to the City Treasurer. The form of any
such security deposit shall be approved by the City Attorney and the City Treasurer. No interest
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shall accrue on cash deposits to the benefit of Lessee, but interest shall accrue on a CD or
savings account and shall be paid to Lessee under the terms of the CD or savings account.
Lessee shall send a copy of each renewal of the CD to the City Treasurer to ensure that City has
the records of each active deposit account.
SECTION 17. USE OF COCA -COLA PRODUCTS
Beginning January 1, 2004, Lessee shall comply with City's exclusivity agreement with
the Coca-Cola Bottling Company of Southern California ("Coca-Cola") by doing the following:
only Coca-Cola fountain and bottling products shall be bought and sold in, on, or from the
Premises for the term of the City's agreement with Coca-Cola. This includes all carbonated and
non -carbonated, non-alcoholic beverages defined as soft drinks, juices, juice drinks, teas,
isotonics, water and frozen beverages. Frozen beverages shall not include ice creams and frozen
yogurts. Lessee's failure to adhere to the Coca-Cola exclusivity clause shall constitute a Default
of this Lease as defined in Section 36 below. This exclusivity shall not apply to third -party
rentals that bring their own drink products.
SECTION 18. QUALITY OF SALES, RENTALS AND SERVICES
Lessee, at its sole cost and expense, shall equip, operate, manage and maintain the
Premises and Concession and shall keep the same equipped and maintained in a manner
acceptable to City during the entire tern of this Lease or any renewals or extensions thereof or
during any holdover period. It is the intent of City that the Concession's services be provided in
a manner to meet the needs of the visiting public, and should City deem the Concession's hours
of operation and/or food, merchandise, services or rentals inadequate to meet such needs, City
may require Lessee to make such changes requested by City. Lessee shall not use or permit the
Premises to be used, in whole or in part, during the entire term of this Lease or any renewals or
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extensions thereof or during any holdover period for any purpose other than as herein set forth,
without the prior written consent of City.
Except as permitted in advance in writing by City, all foods and beverages shall be sold
in disposable paper or plastic containers. No pull -top cans or styrofoam containers are to be
vended or dispensed from the Premises unless pre -approved in writing by City. Lessee,
wherever feasible, shall eliminate the use of non -recyclable containers and plastics. City may
from time to time review the items sold and containers or utensils used or dispensed by Lessee.
City reserves the right to prohibit the sale or use of non -recyclable containers or plastics.
City in its sole discretion reserves the right to prohibit Lessee's sale, provision or rental
of any item or service rendered or performed, which it deems objectionable or offensive, beyond
the scope deemed necessary for proper service to the public, inappropriate for sale, provision or
rental by the Concession, or of inferior quality.
SECTION 19. INDEMNIFICATION, DEFENSE AND HOLD HARMLESS AGREEMENT
Lessee hereby agrees to protect, defend, indemnify and hold harmless City, its officers,
elected or appointed officials, employees, agents and volunteers from and against any and all
claims, damages, losses, expenses, judgments, demands and defense costs (including, without
limitation, costs and fees of litigation (including arbitration) of every nature or liability of any
kind or nature) arising out of or in connection with (1) the use or occupancy of the Premises by
Lessee, its officers, employees or agents, or (2) the death or injury of any person or the damage
to property caused by a condition of the Premises, or (3) the death or injury of any person or the
damage to property caused by any act or omission of Lessee, its officers, employees or agents, or
(4) any failure by Lessee to keep the Premises in a safe condition, or (5) Lessee's (or Lessee's
agents and/or sublessees, if any) performance of this Lease or its failure to comply with any of its
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obligations contained in this Lease by Lessee, its officers, agents or employees except such loss
or damage which was caused by the sole negligence or willful misconduct of City. Lessee shall
hold all Trade Fixtures, personal property and trade inventory on the Premises at the sole risk of
Lessee and save City harmless from any loss or damage thereto by any cause whatsoever, except
such loss or damage which was caused by the sole negligence or willful misconduct of City.
Lessee will conduct all defense at its sole cost and expense and City shall approve selection of
Lessee's counsel. This indemnity shall apply to all claims and liability regardless of whether any
insurance policies are applicable. The policy limits do not act as limitation upon the amount of
indemnification to be provided by Lessee.
SECTION 20. WORKERS' COMPENSATION AND EMPLOYERS' LIABILITY
INSURANCE
Lessee acknowledges awareness of Section 3700 et seq. of the California Labor Code,
which requires every employer to be insured against liability for workers' compensation. Lessee
covenants that it shall comply with such provisions prior to the commencement of this .Lease.
Lessee shall obtain and furnish to City workers' compensation and employers' liability insurance
in amounts not less than the State statutory limits. Lessee shall require all sublessees and
contractors to provide such workers' compensation and employers' liability insurance for all of the
sublessees' and contractors' employees. Lessee shall furnish to City a certificate of waiver of
subrogation under the terms of the workers' compensation and employers' liability insurance and
Lessee shall similarly require all sublessees and contractors to waive subrogation.
SECTION 21. GENERAL PUBLIC LIABILITY INSURANCE
In addition to the workers' compensation and employers' liability insurance and Lessee's
covenant to defend, hold harmless and indemnify City, Lessee shall obtain and furnish to City, a
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policy of general public liability insurance, including motor vehicle coverage against any and all
claims arising out of or in connection with the Premises. This policy shall indemnify Lessee, its
officers, employees and agents, while acting within the scope of their duties, against any and all
claims arising out of or in connection with the Premises, and shall provide coverage in not less
than the following amount.: combined single limit bodily injury and property damage, including
products/completed operations liability and blanket contractual liability, of One Million Dollars
($1,000,000.00) per occurrence. If coverage is provided under a form which includes a
designated general aggregate limit, the aggregate limit must be no less than One Million Dollars
($1,000,000.00) for the Premises. This policy shall name City, its officers, elected or appointed
officials, employees, agents, and volunteers as Additional Insureds, and shall specifically provide
that any other insurance coverage which may be applicable to the Lease shall be deemed excess
coverage and that Lessee's insurance shall be primary.
Under no circumstances shall said above -mentioned insurance contain a self -insured
retention, or a "deductible" or any other similar form of limitation on the required coverage.
SECTION 22. PROPERTY INSURANCE
Lessee shall provide before commencement of this Lease and shall obtain and furnish to
City, at Lessee's sole cost and expense, property and fire insurance with extended coverage
endorsements thereon, by a company acceptable to City authorized to conduct insurance business
in California, in an amount insuring for the full insurable value of all Improvements, Trade
Fixtures, personal property whether or not owned or leased by Lessee, and all trade inventory in
or on the Premises against damage or destruction by fire, theft or the elements. This policy shall
contain a full replacement cost endorsement naming Lessee as the insured and shall not contain a
coinsurance penalty provision. The policy shall also contain an endorsement naming City as an
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Additional Insured. The policy shall contain a special endorsement that such proceeds shall be
used to repair, rebuild or replace any such Improvements, Trade Fixtures, personal property
whether or not owned or leased by Lessee, and all trade inventory so damaged or destroyed; and
if not so used, such proceeds (excluding any insurance proceeds for Trade Fixtures, personal
property whether or not owned or leased by Lessee, and trade inventory, but only to the extent
the insurance proceeds specifically cover those items) shall be paid to City. The policy shall also
contain a special endorsement that if the Premises are so destroyed triggering the parties' ability
to terminate as set forth in Section 52 (Destruction) below, and either party elects to terminate
the Lease, the entire amount of any insurance proceeds (excluding such proceeds for Trade
Fixtures, personal property whether or not owned or leased by Lessee and trade inventory, but
only to the extent the insurance proceeds specifically cover those items) shall be paid to City.
The proceeds of any such insurance payable to City may be used, in the sole discretion of City,
for rebuilding or repair as necessary to restore the Premises or for any such other purpose(s) as
City sees fit.
This policy shall also contain the following endorsements:
(a) The insurer shall not cancel or reduce the insured's coverage without (30)
days prior written notice to City;
(b) City shall not be responsible for premiums or assessments on the policy.
A complete and signed certificate of insurance with all endorsements required by this
Section shall be filed with City prior to the execution of this Lease. At least thirty (30) days
prior to the expiration or termination of any such policy, a signed and complete certificate of
insurance showing that coverage has been renewed shall be filed with City.
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SECTION 23. INCREASE IN AMOUNT OF GENERAL PUBLIC LIABILITY
AND PROPERTY INSURANCE
Not more frequently than once every two (2) years, if, in the sole opinion of City, the
amount and/or scope of general public liability insurance in Section 21 above and/or property
insurance coverage in Section 22 above at that time is not adequate, Lessee shall increase the
insurance coverage as reasonably required by City.
SECTION 24. CERTIFICATES OF INSURANCE; ADDITIONAL INSURED
ENDORSEMENTS
Prior to commencement of this Lease, Lessee shall furnish to City certificates of
insurance subject to approval of the City Attorney evidencing the foregoing insurance coverages
as required by this Lease; these certificates shall:
(a) provide the name and policy number of each carrier and policy;
(b) shall state that the policy is currently in force; and
(c) shall promise to provide that such policies shall not be canceled or
modified without thirty (30) days' prior written notice of City; however ten (10)
days' prior written notice in the event of cancellation for nonpayment of
premium, which 10-day notice provision shall not apply to property insurance in
Section 22 above.
Lessee shall maintain the foregoing insurance coverages in force during the entire term of
the Lease or any renewals or extensions thereof or during any holdover period.
The requirement for carrying the foregoing insurance coverages shall not derogate from
Lessee's defense, hold harmless and indemnification obligations as set forth in this Lease. City
or its representatives shall at all times have the right to demand the original or a copy of any or
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all the policies of insurance. Lessee shall pay, in a prompt and timely manner, the premiums on
all insurance hereinabove required.
SECTION 25. INSURANCE HAZARDS
Lessee shall not commit or permit the commission of any acts on the Premises nor use or
permit the use of the Premises in any manner that will increase the existing rates for, or cause the
cancellation of any liability, property, or other insurance policy for the Premises or required by
this Lease. Lessee shall, at its sole cost and expense, comply with all requirements of any
insurance carrier providing any insurance policy for the Premises or required by this Lease
necessary for the continued maintenance of these policies at reasonable rates.
SECTION 26. MAINTENANCE OF PREMISES
City's maintenance responsibilities of the Premises shall be limited to maintaining all
sewers and drain lines, roofs and attached public restrooms (if they exist). Except as set forth in
the preceding sentence, Lessee agrees to maintain the Premises in good order and repair, at
Lessee's sole cost and expense, during the entire term of this Lease or any renewals or
extensions thereof or during any holdover period, pursuant to the City's maintenance standards.
A copy of the quarterly evaluation summary sheet setting forth the City's maintenance checklist
is attached as Exhibit "B", and incorporated herein by this reference. Except as provided above,
Lessee, at its sole cost and expense, shall perform any maintenance and repairs including,
without limitation, facility maintenance and landscape maintenance on the Premises.
Lessee's obligation includes, without limitation, maintaining and operating the Premises
and adjacent areas to a distance of not more than fifty (50) feet, in a clean, safe, wholesome and
sanitary condition free of trash, garbage or obstructions of any kind and in compliance with any
and all present and future laws, general rules or regulations of any governmental authority now,
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or at any time during the entire term of this Lease or any renewals or extensions thereof or during
any holdover period, in force, relating to sanitation or public health, safety or welfare, or for the
protection of life, limb or property; and Lessee shall at all times faithfully obey and comply with
all laws, rules and regulations applicable thereto. Lessee, at its sole cost and expense, shall
remedy without delay any defective, dangerous or unsanitary condition(s) caused by Lessee or
anyone related thereto. Provided, however, that Lessee shall have no obligation to repair or
maintain sewer lines or respond to sewer leaks.
Lessee shall paint, stain or seal the Premises' exterior surfaces a minimum of every three
(3) years, unless City determines in its sole discretion that such work shall be done on a more
frequent basis. All exterior metal surfaces, except the roof, shall be painted with rust resistant
paint no less than once every other year. Any and all graffiti on the Premises shall be removed
by Lessee, at its sole cost and expense, within forty-eight (48) hours of Lessee receiving notice
thereof or of Lessee becoming aware of such graffiti. In addition, with or without notice from
City, Lessee shall, at its sole cost and expense, repair and/or replace any broken glass within
forty-eight (48) hours of its becoming broken, regardless of cause, except by fault of City.
Except as provided above for graffiti and broken glass, Lessee, at its sole cost and expense and
with or without notice from City, shall repair and/or replace all damage or destruction to the
Premises caused by act(s) of vandalism as soon as possible but in no event later than fourteen
(14) days after the date such damage or destruction occurred. Lessee, at its sole cost and
expense, shall repair and/or replace all other damage or destruction to the Premises, regardless of
cause, except by fault of City.
Lessee shall comply with all written notices served by City with regard to the care and
maintenance of the Premises. Any written notice hereunder shall specify the work to be done
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and the period of time deemed to be reasonably necessary for completion of such work. Should
Lessee fail to commence making the necessary repairs within seven (7) days after receiving such
notice, or within twenty-four (24) hours of the glass becoming broken in the case of broken
glass, or fail to diligently proceed to complete the necessary repairs within the period of time
reasonably specified in the City's notice, or within forty-eight (48) hours of the glass becoming
broken in the case of broken glass, or within the forty-eight (48) hour time period for removing
graffiti, or within fourteen (14) days of the date that the vandalism damage or destruction
occurred, City shall proceed to cause the required work to be performed, and Lessee shall
promptly reimburse City for the cost of labor and materials thereof and pay City a penalty on
such costs at the penalty rate set forth in Section 11 above from the date the costs were incurred
by City to the date they are reimbursed to City by Lessee.
Lessee hereby expressly waives the right to make repairs at the expense of City and the
benefit, if any, of the provisions of Sections 1941 and 1942 of the California Civil Code relating
thereto.
SECTION 27. RENT CREDIT
City in its sole discretion may decide to give Lessee rent credit if Lessee undertakes
(1) any repair or maintenance obligation of City under this Lease, (2) any work City in its sole
discretion deems necessary and appropriate or (3) any Lessee improvements. Prior to Lessee
undertaking any such work, City must agree in writing to the amount of and procedures for the
rent credit, the work to be done by Lessee and the cost of such work.
SECTION 28. DAMAGE, DESTRUCTION OR NUISANCE
Lessee shall not commit or permit the commission by others of any damage or
destruction of, on, or to the Premises and/or Concession. Lessee shall not maintain, commit or
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permit the maintenance or commission of any nuisance as defined in Section 3479 and/or Section
3480 of the California Civil Code on the Premises; and Lessee shall not use or permit the use of
the Premises for any unlawful purpose.
SECTION 29. TAXES
This Lease may create a possessory interest in property, which is subject to taxation. In
the event that such possessory interest is created, Lessee agrees to be subject to the payment of
and to pay taxes levied on such interest, at its sole cost and expense. Lessee also agrees to pay,
at its sole cost and expense, before they become delinquent all other lawful taxes, assessments or
charges, which at any time may be levied by any governmental agency including, without
limitation, the State, County, City or any tax or assessment levying body upon any interest in this
Lease, or any possessory right which Lessee may have in or to the Premises, by reason of
Lessee's use or occupancy thereof or otherwise, as well as all taxes, assessments, and charges on
Trade Fixtures, personal property and trade inventory in, on, or about the Premises. Upon
request, Lessee shall promptly furnish to City satisfactory evidence establishing such ?payment.
Lessee shall comply with all laws, regulations and ordinances regarding the collection of taxes
due a government agency.
SECTION 30. PAYMENT OF OBLIGATIONS
Lessee shall promptly pay, at its sole cost and expense, before they become delinquent,
any and all bills, debts, liabilities and obligations incurred by Lessee in connection with Lessee's
occupation and use of the Premises and/or operation of the Concession. Upon request, Lessee
shall promptly furnish to City satisfactory evidence establishing such payment.
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•
SECTION 31. UTILITIES AND SERVICES
Excluding any attached public restrooms, if they exist, Lessee shall be responsible for the
payment of all utility charges, including, without limitation, gas, electricity, water, telephone
service, cable TV service, and the furnishing of all necessary refuse and garbage containers and
the removal and disposal of all rubbish, refuse and garbage resulting from the operation of the
Premises and/or the Concession. All such rubbish, refuse and garbage removed shall be disposed
of in accordance with applicable laws and local ordinances. All trash containers and/or trash
bins shall be adequately screened and located to the satisfaction of City. For the purposes of this
Section, sewage disposal shall be construed as a utility. All such charges shall be paid by Lessee
directly to the provider of the service and shall be paid as they become due and payable. Upon
request, Lessee shall promptly furnish to City satisfactory evidence establishing such payment.
SECTION 32. BUSINESS LICENSE
Lessee shall maintain a business license from City during the entire terns of this Lease or
any renewals or extensions thereof or during any holdover period.
SECTION 33. SIGNS. ADVERTISING AND APPROVAL OF NAME
City shall have the right to approve in its sole discretion and at any time require Lessee to
change or remove signs, names, placards, decorations or advertising placed on, or inscribed,
painted or affixed upon the Premises. Should City approve of any sign, name, placard,
decoration or advertising, Lessee shall maintain the same at all times during the entire term of
this Lease or any renewals or extensions thereof or during any holdover period in good
appearance and repair. All signs, names, placards, decorations or advertising must comply with
all requirements of any governmental authority with jurisdiction.
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u
SECTION 34. NO ASSIGNING, SUBLEASING OR ENCUMBERING
(a) Prohibition of Assignment. The parties acknowledge that City is entering into
the Lease in reliance upon the experience and abilities of Lessee and its
principals. Consequently, Lessee shall not voluntarily assign, encumber or
otherwise transfer its interest in the Lease or in the Premises, or sublease all or
any part of the Premises, or allow any other person or entity (except Lessee's
authorized representatives) to occupy or use all or any part of the Premises
without the prior written consent of City, which consent shall not be unreasonably
withheld. Provided, however, that City's consent shall not relieve Lessee from
any and all of its obligations, liabilities, duties or responsibilities under this Lease.
Any assignment, encumbrance, occupation or use, sublease or other transfer
without such consent shall be voidable and, at City's sole discretion, shall
constitute a Default of this Lease.
(b) Consent to Transfer. City's consent to any assignment, encumbrance, occupation
or use, sublease or other transfer is subject to Lessee providing City with evidence
satisfactory to City that the proposed, assignee, encumbrancer, occupier or user,
sublessee or other transferee has suitable financial strength, experience and
character for operation and control of the Premises and the Concession and that
the use of the Premises by the proposed assignee, encumbrancer, occupier or user,
sublessee or other transferee is consistent with that specified herein, and is
commercially reasonable. Any proposed assignee, encumbrancer, occupier or
user, sublessee or other transferee shall agree to abide by the terms and conditions
of the Lease including, without limitation, all the obligations, liabilities, duties
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and responsibilities of Lessee, and other conditions imposed upon it pursuant to
law. An approval by City to one assignment, encumbrance, occupation or use,
sublease or other transfer shall not be deemed to be an approval to any other
assignment, encumbrance, occupation or use, sublease or other transfer.
(c) Voluntary assignment defined. Except as otherwise expressly provided herein,
any dissolution, merger, consolidation or reorganization of Lessee, or the sale or
other transfer resulting in a transfer of a controlling percentage of the capital stock
of Lessee (other than a transfer by will, devise, bequest, intestate succession, a
transfer to or between the family members of Lessee, or a transfer to or between
one or more trusts for the benefit of Lessee and/or Lessee's family members,
where applicable) shall be deemed a voluntary assignment.
(d) Exceptions. Notwithstanding the foregoing paragraphs or anything to the
contrary contained herein, City's consent shall not be required for an assignment
or subleasing to an Affiliate, Subsidiary or Successor of Lessee (for purposes
hereof, an "Affiliate," a "Subsidiary" and a "Successor" of Lessee are defined as
follows: (a) an "Affiliate" is any corporation which directly or indirectly controls
or is controlled or is under common control with Lessee (for this purpose,
"control" shall mean the possession, directly or indirectly, of the power to direct
or cause the direction of the management and policies of such corporation,
whether through the ownership of voting securities or by contract or otherwise),
(b) a "Subsidiary" shall mean any corporation or partnership not less than twenty-
five percent (25%) of whose outstanding stock shall, at the time, be owned
directly or indirectly by Lessee and which is at least as creditworthy as Lessee,
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and (c) a "Successor" shall mean a corporation or partnership in which or with
which Lessee is merged or consolidated, in accordance with applicable statutory
provisions for merger or consolidation of corporations, or a corporation or
partnership acquiring a substantial portion of the property and assets of Lessee.
SECTION 35. TERMS BINDING ON SUCCESSO
All the terms, covenants and conditions of this Lease shall inure to the benefit of and be
binding upon the parties and their successors, including, without limitation, their assignees,
encumbrancers, occupiers or users, sublessees or other transferees. The provisions of this
Section shall not be deemed as a (1) waiver of any of the prohibitions and conditions against
assignments, encumbrances, occupations or uses, subleases or other transfers hereinbefore set forth,
or (2) City's consent thereto. If more than one lessee is a party to this Lease, the obligations of the
lessees shall be joint and several. Even if City's consent is not required, Lessee shall immediately
provide City with written notice of any, assignment, encumbrance, occupation or use, sublease or
other transfer.
SECTION 36. DEFAULT
The occurrence of any one or more of the following events shall constitute a material default
and breach ("Default") of this Lease by Lessee:
(a) Lessee's failure to make any payment of the Rent or other payment required to be
made by Lessee at the time required for payment under this Lease.
(b) Lessee's failure to obtain or maintain the insurances and/or the security deposit as
required under this Lease.
(c) Lessee's vacating or abandonment of the Premises during the entire term of this
Lease or any renewals or extensions thereof or during any holdover period.
Closure of the Concession for more than a combined total of one hundred eighty
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0 •
(180) days in a calendar year, minus any days of closure of the Concession caused
by City, shall be deemed an abandonment of the Premises.
(d) Lessee's violation of Section 19 (Indemnification, Defense and Hold Harmless
Agreement), Section 34 (No Assigning, Subleasing or Encumbering), Section 47
(Hazardous Substances), Section 48 (Nondiscrimination), Section 49 (Sale of
Alcoholic Beverages and Entertainment Prohibited), Section 62 (Conflict of
Interest) or Section 64 (Compliance with Laws).
(e) The insolvency of Lessee as evidenced by a receiver being appointed to take
possession of all or substantially all of Lessee's assets located at or ,on the
Premises or of Lessee's interest in this Lease, or the making by Lessee of a
general arrangement or assignment for the benefit of creditors, or Lessee's filing a
petition in bankruptcy, whether voluntary or involuntary, or the attachment,
execution or the judicial seizure of substantially all of Lessee's assets located at or
on the Premises or of Lessee's interest in the Lease.
(f) Lessee's failure to observe or perform any other term, covenant, obligation, duty,
responsibility or condition of this Lease to be observed or performed by Lessee
when such failure shall continue for a period of thirty (30) days after City's giving
written notice to Lessee, or such earlier period if specifically set forth in this
Lease; however, if the nature of such failure is such that more than thirty (30)
days are reasonably required for its cure, then Lessee shall not be deemed to be in
Default if Lessee notifies City of the length of the additional time required to cure
and receives City's written approval of the additional time required, which
approval will not be unreasonably withheld, and commences such cure within
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such thirty (30) day period and diligently proceeds with such cure to completion
during such additional time period approved by City.
SECTION 37. REMEDIES
(a) Cumulative Nature of Remedies. In the event of any Default by Lessee, City
shall have the remedies described in this Section in addition to all other rights and
remedies provided by law or equity, to which City may resort cumulatively or in
the alternative:
(1) Reentry without Termination. City may at City's sole discretion reenter
the Premises, and, without terminating the Lease, at any time and from
time to time relet the Premises or any part or parts of them for the account
and inthe name of Lessee or otherwise. Any reletting may be for the
remainder of the term or for a longer or shorter period. City may in City's
sole discretion eject all persons or eject some and not others or eject none.
In addition, City may in its sole discretion remove some or all of the Trade
Fixtures, personal property and trade inventory from the Premises. City
may store such removed Trade Fixtures, personal property and trade
inventory in a public warehouse or other location at the sole cost, expense
and risk of Lessee, and for the account of and in the name of Lessee. City
shall apply all rents from reletting as follows: first, to the payment of
reasonable expenses (including brokers' commissions) paid or incurred by
or on behalf of City in recovering possession, placing the Premises in
good condition, and preparing or altering the Premises for reletting;
second, to the reasonable expense of securing new subtenants; third, to the
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fulfillment of Lessee's covenants to the end of the term. City may execute
any leases or subleases made under this provision either in City's name or
in Lessee's name and City shall be entitled to all rents from the use,
operation or occupancy of the Premises. Lessee shall nevertheless pay to
City on the dates specified in this Lease the equivalent of all sums
required of Lessee under this Lease, plus 'City's expenses, less the
proceeds of any reletting or attornment.
(2) Termination. In the event of a Default by Lessee. City may at City's
sole discretion terminate this Lease by giving Lessee written notice of
termination. In the event City terminates this Lease, City may recover
possession of the Premises (which. Lessee shall immediately surrender and
vacate upon demand) and remove all persons therefrom, and Lessee shall
comply with, without limitation, Sections 56 and 57 below. City also shall
be entitled to recover as damages all of the following:
(A) The worth at the time of the award of any unpaid Rent or other
charges which have been earned at the time of termination;
(B) The worth at the time of the award of the amount by which the
unpaid Rent (each month's Rent would be calculated as the
average Rent for that same month in the preceding years, or if
Lessee did own/operate the Concession in the preceding years,
then each month's Rent would be calculated as the average of all
months Lessee owned/operated the Concession) and other charges
which would have been earned after termination until the time of
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•
0
the award exceeds the amount of the loss of such rental and other
charges that Lessee proves could have been reasonably avoided;
(C) The worth at the time of the award of the amount by which the
unpaid Rent (each month's Rent would be calculated as the
average Rent for that same month in the preceding years, or if
Lessee did not own/operate the Concession in the preceding years,
then each month's Rent would be calculated as the average of all
months Lessee owned/operated the Concession) and other charges
for the balance of the term after the time of the award exceeds the
amount of the loss of such rental and other charges that Lessee
proves could have been reasonably avoided;
(D) Any other amount necessary to compensate City for the detriment
proximately caused by Lessee's failure to perform its obligations,
liabilities, duties or responsibilities under this Lease; and
(E) At City's sole discretion, such other amounts in addition to or in
lieu of the foregoing as may be permitted from time to time by
applicable California law.
As used in Sections 37(a)(2)(A) and (B) above, the "worth at the time of the
award" shall be computed by allowing interest at the rate of twelve percent (12%) per
annum. As used in Section 37(a)(2)(C) above, the "worth at the time of the award" shall
be computed by discounting such amount at the discount rate of the Federal Reserve
Bank of San Francisco at the time of the award, plus one percent (1%). The amount
recoverable by City pursuant to Section 37(a)(2)(D) above shall include, without
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0
limitation, any costs or expenses incurred by City in maintaining or preserving the
Premises after such Default.
(3) Use of Personal Property. City may at City's sole discretion use the
Trade Fixtures, personnel property and/or trade inventory located on,
about or appurtenant to the Premises without compensation and without
liability for use or damage, or store them in a public warehouse or other
location at the sole cost, expense and risk of Lessee, and for the account of
and in the name of Lessee.
(b) Election of Remedy. The election of one remedy for any one item shall not
foreclose an election of any other remedy for another item or for the same item at
a later time.
(c) City's Righture .Lessee's Default.. Upon continuance of any Default, City
may in its sole discretion, but is not obligated to, cure such Default at Lessee's
sole cost and expense. If City at any time, by reason of such Default by Lessee,
pays any sum or does any act, the sum paid by City plus the reasonable cost of
performing such act, together with a penalty thereon at the penalty rate set forth in
Section 11 above from the date the costs were incurred or the act performed by
City to the date they are reimbursed to City by Lessee, shall be due as additional
rent not later than five (5) days after service of a written demand therefor on
Lessee, including reasonably detailed documentation of the amount owed. No
such payment or act shall constitute a waiver of Default or of any remedy for
Default or render City liable for any loss or damage resulting from any such act.
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(d) Waiver of Ri hg_ts. Lessee hereby waives any right of redemption or relief
from forfeiture under California Code of Civil Procedure Sections 1174 or 1179,
or under any other present or future law, in the event Lessee is evicted or City
takes possession of the Premises by reason of any Default by Lessee hereunder.
(e) Other Rights of City. No act of City, including, without limitation, City's entry
on the Premises, efforts to relet the Premises, or maintenance of the Premises,
shall be construed as an election to terminate this Lease unless a written notice of
such intention is given to Lessee by City or unless the termination thereof is
decreed by a court of competent jurisdiction. Notwithstanding if City elects to
continue the Lease in full force and effect after a Default by Lessee and to relet
the Premises, City may at any time after such reletting elect to terminate this
Lease for any such Default.
SECTION 38. CUMULATIVE REMEDIES
The remedies given to City in this Lease shall not be exclusive but shall be cumulative
and in addition to all remedies now or hereafter allowed by law or elsewhere provided in this
Lease. City shall have the right to exercise any other right or remedy which City may have at
law or in equity including, without limitation, City's rights under the unlawful detainer laws.
SECTION 39. WAIVER OF DEFAULT
The waiver by City of any Default by Lessee of any of the provisions of this Lease shall
not constitute a continuing waiver or a waiver of any subsequent Default by Lessee either of the
same or another provision of this Lease.
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SECTION 40. CITY'S DEFAULTS/LESSEE'S REMEDY
In the event City fails to perform any material obligation of City under the Lease within
ninety (90) days after receiving written notice from Lessee specifying the nature of such default,
or, if the nature of City's obligation is such that more than ninety (90) days are required for its
performance, if City fails to commence such performance within such ninety (90) day period and
thereafter diligently prosecute the same to completion, then City shall be in default of. this
obligation. If City's default materially interferes with Lessee's use of the Premises for its
intended purpose, Lessee shall have the option to terminate the Lease by giving City at least
sixty (60) days' written notice of its intent to terminate. In such a situation, Lessee must still
comply with all of its obligations, liabilities, duties and responsibilities under the Lease,
including, without limitation, paying any Rent due up to the time of termination and surrendering
the Premises pursuant to Sections 56 and 57 below. This remedy of termination is Lessee's sole
and exclusive remedy for a default by City.
SECTION 41. CONSENT
When City's consent/approval is required under this Lease, its consent/approval for one
transaction or event shall not be deemed to be a consent/approval to any subsequent occurrence
of the same or any other transaction or event.
SECTION 42. HOLDOVER
Should Lessee hold over and continue in possession of the Premises after expiration or
termination of this Lease, with or without the express prior written consent of City, Lessee's
continued occupancy of the Premises shall constitute a month -to -month tenancy, subject to all
the terms and conditions of this Lease, at a monthly rent of one hundred ten percent (110%) of
the previous calendar year's annual Rent divided by twelve (12) (or the average monthly Rent
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for all months Lessee owned/operated the Concession if Lessee has owned/operated the
Concession for less than one (1) year) or that month's actual Rent, whichever is greater, and shall
not constitute a renewal or extension of the Lease term.
SECTION 43. WAIVER OF CLAIMS
Lessee hereby waives any claim against City, its officers, elected or appointed officials,
employees, agents or volunteers for damage or loss caused by any suit or proceeding directly or
indirectly attacking the validity of this Lease, or any part thereof, or caused by any judgment or
award in any suit or proceeding declaring this Lease null, void or voidable, or delaying the Lease
or any part thereof from being carried out.
SECTION 44. INSPECTION OF PREMISE
Upon at least twenty-four (24) hours advance written, verbal or electronic notice given by
City to Lessee, Lessee shall permit City or City's agents, representatives or employees to enter
the Premises at all reasonable times for the purpose of inspecting, investigating and surveying
the Premises to determine whether Lessee is complying with the terms of this Lease and for the
purpose of doing other lawful acts that may be necessary to protect City's interest in the
Premises or to perform City's duties under this Lease. City also shall have the right in its sole
discretion to do any and all work of any nature necessary for the preservation, maintenance and
operation of property owned, controlled or occupied by City. Lessee shall be given reasonable
notice when such work becomes necessary, and Lessee shall adjust the operation of the
Concession in such a manner that City may proceed expeditiously.
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SECTION 45. CITY'S RIGHT TO LEASE BUYOUT
City shall have the right at any time during the entire term of this Lease or any renewals
or extensions thereof to buyout the remaining years of the Lease and Lessee's interest in this
Lease based upon the following buyout formula:
Average of the most recent two (2) years (preceding the date of the notice
of buyout) annual Gross Sales under this .Lease or a prior lease multiplied
by a twelve and one-half percent (12.5%) profit margin multiplied by the
number of years remaining on the Lease discounted by twelve and one-
halfpercent (12.5%) to present value.
For example:
The annual Gross Sales for the most recent two (2) years of the Concession are
$335,000.00 and $350,000.00. If City gives Lessee notice of its buyout intention in September,
the preceding two (2) years would be the preceding twenty-four (24) months ending in August.
There are three (3) years remaining in the Lease.
The average of the Gross Sales of the most recent two (2) years is $342,500.00
($335,000.00 + $350,000.00/2).
The profit margin is 12.5% of the most recent two (2) year average which is $42,812.50
($342,500.00 x 0.125).
The profit margin is then discounted at the rate of 12.5% to present value over the
remaining years of the Lease:
Year 1: $42,812.50 / 1.125 = $38,055.56
Year 2: $42,812.50 / 1.125 / 1.125 = $33,827.16
Year 3: $42,812.50 / 1.125 / 1.125 / 1.125 = $30,068.59
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All of the discounted cash flows for the remaining years of the Lease are totaled and the
result is the buyout price of the Lease. In this case, the City's buyout price is $101,951.31.
If Lessee has owned/operated the Concession for less than two (2) years, the City's
buyout price will be the greater of (1) the amount calculated under the Gross Sales formula
above or (2) all reasonable and provable start-up costs, which start-up costs will be determined
by City in its sole discretion. The annual Gross Sales figure on which to calculate the buyout
amount shall be calculated as follows:
The average monthly Gross Sales for all months up to twenty-three (23)
months converted into an annual Gross Sales figure.
For example, if City decides to buyout the Lease of a new Lessee who has
owned/operated the Concession for fifteen (15) months, with an average monthly Gross Sales
figure of Five Thousand Dollars ($5,000.00), the annual Gross Sales figure for the option to
buyout would be Sixty Thousand Dollars ($60,000.00).
For purposes of this calculation, a Lessee shall not be considered a new lessee if the
Concession was previously owned/operated by a lessee, whose assignment, encumbrance,
occupation or use, sublease or other transfer to Lessee did not require City approval in Section
34 above.
At City's sole option, City shall have the right, but not the obligation, to purchase any or
all of Lessee's Trade Fixtures (defined in Section 51 below), based on the appraised fair value
market of the Trade Fixtures.
If City desires to purchase any or all of Lessee's Trade Fixtures, City shall select an
appraiser to provide an appraisal of such Trade Fixtures. If Lessee disagrees with City's
appraisal, Lessee, at its sole cost and expense, shall select another appraiser to provide an
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appraisal. If City disagrees with Lessee's appraisal, City shall select another appraiser to
perform an appraisal. In such case, the parties agree that the price for the Trade Fixtures will be
the average of these three (3) appraisals. All appraisers must be members in good standing in the
American Society of Appraisers. Notwithstanding the foregoing, at any time, City may elect not
to purchase any or all of Lessee's Trade Fixtures.
Upon City's request, Lessee shall provide City with proof of lien free, good and
merchantable title to any such Trade Fixtures City desires to purchase. Lessee shall protect,
defend, indemnify, and hold harmless City, its officers, elected and appointed officials,
employees, agents and volunteers from and against any and all liens, claims, damages, losses,
expenses, judgments, demands and defense costs (including, without limitation, costs and fees of
litigation (including arbitration) of every nature or liability of any kind or nature) arising out of
or in connection with Lessee's fraud, omission or negligence regarding any purchase of Lessee's
Trade Fixtures by City. Lessee will conduct all defense at its sole cost and expense. and City
shall approve selection of Lessee's counsel. This indemnity shall apply to all claims and liability
regardless of whether any insurance policies are applicable. The policy limits do not act as
limitation upon the amount of indemnification to be provided by Lessee.
Lessee acknowledges and agrees that this Lease buyout option of City has been
negotiated at arms -length and does not constitute nor does Lessee construe this to be an act of
eminent domain or inverse condemnation. In the event City exercises this buyout option, Lessee
waives any and all claims of loss of business goodwill and relocation rights or benefits. Lessee
also shall immediately surrender the Premises as set forth herein and comply with, without
limitation, Sections 56 and 57 below.
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SECTION 46. PHOTOGRAPHY
Lessee acknowledges and agrees that City may grant permits to third parties engaged in
the production of still and motion pictures and related activities to take photographs
or videos of or on the Premises when such permission shall not interfere with the primary
business of Lessee, all without providing Lessee with notice or requiring consent by Lessee.
SECTION 47. HAZARDOUS SUBSTANCES
Lessee represents and warrants that its use or occupation of the Premises shall not
generate any Hazardous Substance (as defined below in this Section), and it shall not store or
dispose on the Premises nor transport to or over the Premises any Hazardous Substance during
the entire term of this Lease or any renewals or extensions thereof or during any holdover period.
The foregoing restrictions shall not be deemed to restrict or prohibit the use by Lessee of
ordinary cleaning products as customarily used in Lessee's ordinary course of business at the
Concession, provided that Lessee complies with all provisions of law as to the use, storage and
disposal of such products. Lessee further agrees to clean up and remediate any such Hazardous
Substance on the Premises, and agrees to protect, defend, indemnify and hold harmless City, its
officers, elected or appointed officials, employees, agents and volunteers from and against any
and all claims, damages, losses, expenses, judgments, demands and defense costs (including,
without limitation, costs and fees of litigation (including arbitration) of every nature or liability
of any kind or nature) arising out of or in connection with any such Hazardous Substance and
any damage, loss, or expense or liability resulting from any such Hazardous Substance including,
without limitation, all attorney's fees, costs and penalties incurred as a result thereof except any
release caused by the sole negligence or willful misconduct of City. Lessee will conduct all
defense at its sole cost and expense and City shall approve selection of Lessee's counsel. This
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indemnity shall apply to all claims and liability regardless of whether any insurance policies are
applicable. The policy limits do not act as limitation upon the amount of indemnification to be
provided by Lessee. "Hazardous substance" shall be interpreted broadly to mean any substance
or material defined or designated as a hazardous or toxic waste, hazardous or toxic material,
hazardous or toxic or radioactive substance, or other similar term, by any.Federal, State or local
environmental law, regulation or .rule presently in effect or promulgated in the future, as such
law, regulation or rule may be amended from time to time; and it shall be interpreted to include,
without limitation, any substance which after release into the enviromnent will or may
reasonably be anticipated to cause sickness, death or disease.
SECTION 48. NONDISCRIMINATION
Lessee and its employees shall not discriminate because of race, religion, color, ancestry,
sex, age, national origin or physical handicap against any person by refusing to furnish such
'person any accommodation, facility, rental, service or privilege offered to or enjoyed by the
general public. Nor shall Lessee or its employees publicize the accommodation, facilities,
rentals, services or privileges in any manner that would directly or inferentially reflect upon or
question the acceptability of the patronage of any person because of race, religion, color,
ancestry, sex, age, national origin or physical handicap.
In the performance of this Lease, Lessee shall not discriminate against any employee or
applicant for employment, because of race, religion, color, ancestry, sex, age, national origin or
physical handicap. Lessee shall take affirmative action to ensure that applicants are employed
and that employees are treated during employment, without regard to their race, religion, color,
ancestry, sex, age, national origin or physical handicap. Such action shall include, without
limitation, the following: employment, upgrading, demotion or transfer; recruitment or
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recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and
selection for training, including, without limitation, apprenticeship. Lessee shall post in
conspicuous places, available to all employees and applicants for employment, notices setting
forth the provisions of this Section.
Lessee shall permit access to its records of employment, employment advertisements,
application forms, and other pertinent data and records by City, the State Fair Employment
Practices Commission or any other agency with jurisdiction over these matters, for the purpose
of investigation to ascertain compliance with this Section.
City may determine a violation of this Section to have occurred upon receipt of a final
judgment having that effect from a court in an action to which Lessee was a party, or upon
receipt of a written notice from the State Fair Employment Practices Commission or other
government agency with jurisdiction over these matters that it has investigated and determined
that Lessee has violated the Fair Employment Practices Act or other applicable discrimination
law and has issued an order which has become final, or obtained an injunction. In the event of
violation of this Section, City shall have the right to terminate this Lease, and any loss of revenue
sustained by City by reason thereof shall be borne and paid for by Lessee, at its sole cost and
expense.
SECTION 49. SALE OF ALCOHOLIC BEVERAGES AND ENTERTAINMENT
PROHIBITED
Notwithstanding anything to the contrary, the sale or provision of alcoholic beverages
and/or live entertainment in, on, or from the Premises is expressly forbidden, unless expressly
permitted in writing by City in advance. For any proposed sale or provision of alcoholic
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beverages, Lessee must first obtain written City approval prior to submitting any request for
approval to the Alcohol Beverage Commission.
SECTION 50. LIENS
Lessee shall keep the Premises free and clear from any and all liens, including, without
limitation, mechanics' or materialmens' liens, claims and demands for work performed,
materials furnished, or operations conducted on or about the Premises or by reason of any use or
occupancy by Lessee, or any person claiming under .Lessee. When applicable, Lessee shall
cause a notice of nonresponsibility to be posted and recorded pursuant to California Civil Code
Section 3094.
SECTION 51. INSTALLATION AND REMOVAL OF TRADE FIXTURES
Lessee shall have the right during the entire term of this Lease or any renewals or
extensions .thereof, at Lessee's sole cost and expense, to install or affix in, to, or on the Premises
any machinery, equipment and other objects (the "Trade Fixtures"), for use in Lessee's trade or
business as Lessee may deem advisable. Any and all such Trade Fixtures that can be removed
without structural damage to the Premises shall, subject to Section 57 below, remain the property
of Lessee and may be removed by Lessee at any time prior to the expiration or termination of
this Lease, provided Lessee repairs any damage caused by the removal. Upon execution of this
Lease and every anniversary, Lessee shall provide City with a list of all Trade Fixtures on the
Premises.
SECTION 52. DESTRUCTION
Should the Premises be partially destroyed, this Lease shall continue in full force and
effect, and Lessee, at Lessee's sole cost and expense, shall complete the work of repairing and
restoring the Premises to their prior condition providing such work can be accomplished under
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all applicable governmental laws and regulations within one hundred eighty (180) days. Should
the Premises be so far destroyed that in City's reasonable judgment they cannot be repaired or
restored to their former condition within one hundred eighty (180) days, City shall give Lessee
notice of such determination in writing and each party may, in that party's sole discretion:
(a) Continue this Lease in full force and effect in which case Lessee shall repair and
restore, at Lessee's sole cost and expense, the Premises to their former condition;
or
(b) Terminate this Lease by giving the other party thirty (30) days' written notice of
such termination within sixty (60) days after the date that City gives Lessee notice
that the Premises cannot be repaired or restored to their former condition within
one hundred eighty (180) days. In the event that either party elects to terminate
this Lease, the entire amount of any insurance proceeds (excluding such proceeds
for Trade Fixtures, personal property whether or not owned or leased by Lessee
and trade inventory, but only to the extent that the insurance proceeds specifically
cover those items) shall be paid to City. The proceeds of any such insurance
payable to City may be used, in the sole discretion of City, for rebuilding or repair
as necessary to restore the Premises or for any other such purpose(s) as City sees
fit. In addition, if Lessee elects to terminate the Lease, Lessee must still comply
with all of its obligations, liabilities, duties and responsibilities under the Lease,
including, without limitation, paying any Rent due up to the time of termination
and surrendering the Premises, pursuant to Sections 56 and 57 below.
In the event of the damage or destruction of Improvements, Trade Fixtures and/or
personal property located on the Premises not giving rise to a termination of this Lease, Lessee
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shall, at its sole cost and expense, replace and repair the same as soon as reasonably possible to
permit the prompt continuation of Lessee's business at the Premises.
SECTION 53. NO ABATEMENT OF RENT DURING REPAIR WORK
The Rent shall not be abated for the time Lessee is prevented from using the whole or a
portion of the Premises. In addition, Lessee shall not be excused from the payment of taxes,
insurance or any other obligations for the time Lessee is prevented from using the whole or a
portion of the Premises.
SECTION 54. EMINENT DOMAIN
If, during the term of this Lease or any renewals or extensions thereof or during any
holdover period, City's real property (whether held by City in fee simple, an easement interest or
otherwise) and/or the Premises is taken in eminent domain, the entire award (that is, all forms) of
compensation, other than as provided herein, shall belong to and be paid to City. In the event of
condemnation, Lessee shall be entitled to an award of only the following forms of compensation,
if any, from the condemning authority: compensation for loss of . business goodwill;
compensation for the value of any of Lessee's Trade Fixtures; compensation for the value of any
of Lessee's personal property; compensation for the value of any of Lessee's trade inventory;
and compensation for relocation benefits as authorized by law. All other forms of compensation,
such as, for example, but not by way of limitation, any bonus value of Lessee's interest in this
Lease, shall belong to and be paid to City. In the event of condemnation, unless Lessee is
allowed by the condemning authority to continue its operations on the Premises, the Lease shall
terminate on the earliest of the following dates: the date the condemning authority obtains a
prejudgment order for possession; the date title to the Premises vests in the condemning
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authority; or the date when Lessee is required by the condemning authority to cease its
operations.
SECTION 55. RELOCATION AND ASSISTANCE, BUSINESS GOODWILL AND
LEASEHOLD BONUS VALUE
Upon expiration or termination of this Lease for any reason, including, without
limitation, if City exercises its Lease buyout option, but excluding eminent domain, Lessee shall
not be entitled to any relocation rights or benefits, business goodwill or bonus value attributable
to this Lease, and Lessee expressly waives any claim to the same.
SECTION 56. OUITCLAIM DEED
Upon expiration or termination of this Lease as provided for herein, including, without
limitation, in the event City exercises its Lease buyout option, Lessee shall execute and deliver to
City within thirty (30) days thereof, a good and sufficient quitclaim deed to the rights and
interests of Lessee in the Premises and the Lease. Should Lessee fail or refuse to deliver to City
this quitclaim deed, City may record in the Orange County Recorder's Office a written notice
reciting the failure of Lessee to execute and deliver this quitclaim deed. The date of recordation
of this notice by City shall be conclusive evidence against Lessee and all persons claiming under
Lessee of the expiration or termination of this Lease and any rights or interests of Lessee in the
Premises and/or the Lease. Lessee also agrees to execute, acknowledge, and deliver to City any
other instrument requested by City as necessary to perfect City's right, title and interest to the
Premises.
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SECTION 57. RESTORATION AND SURRENDER OF PREMISES/TITLE TO
IMPROVEMENTS
On expiration or termination of this Lease, including, without limitation, in the event City
exercises its Lease buyout option, Lessee shall, without compensation to Lessee, promptly
surrender and deliver the Premises to City in as good condition as such were at the
commencement date of this Lease, reasonable wear and tear excepted. Lessee also shall, without
compensation to Lessee, surrender all Improvements to City in good condition and repair,
ordinary wear and tear excepted, free and clear of all liens and encumbrances. Lessee also shall
remove all Trade Fixtures, personal property and trade inventory. City may in its sole discretion
accept all or any portion of the Premises, as then improved with Improvements and no sum
whatsoever shall be paid to Lessee or any other person; or City may require Lessee to remove all
or any portion of such Improvements, at Lessee's own risk and cost and expense; or City may
itself remove or have removed all or any portion of such Improvements, at Lessee's own risk and
cost and expense. If required by City to do so, in removing any such Improvements, Lessee shall
restore the Premises as nearly as possible to the conditions existing prior to their installation or
construction. All such removal and restoration shall be to the satisfaction of City and shall be
completed within thirty (30) days of the expiration or termination of this Lease; provided,
however, that Lessee shall be considered a holdover tenant (pursuant to Section 42 above) after
expiration or termination of the Lease until the time Lessee completes this removal and
restoration work, including, without limitation, the removal of any Trade Fixtures, personal
property and trade inventory left on the Premises. In addition, any Trade Fixtures, personal
property or trade inventory left on the Premises after the expiration of this 30-day period,
regardless of cause, shall be deemed abandoned by Lessee. In City's sole discretion, it may
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choose to do one or more of the following: (1) take any or all of such Trade Fixtures, personal
property and trade inventory as City property; (2) store any or all of such Trade Fixtures,
personal property and trade inventory in a public warehouse or other location at the sole cost,
expense and risk of Lessee, and for the account and in the name of Lessee; or (3) dispose of any
or all of such Trade Fixtures, personal property and trade inventory without any liability to
Lessee. In addition, Lessee's indemnification, hold harmless and defense obligations set forth in
this Lease shall apply to such Trade Fixtures, personal property and/or trade inventory, and to
City's actions with respect thereto.
SECTION 58. FORCE MAJEURE - UNAVOIDABLE D
Should the performance of any act required by this Lease to be performed by either City
or Lessee be prevented or delayed by reason of an act of God, strike, lockout, labor troubles,
inability to secure materials, restrictive governmental laws or regulations, or any other cause
except financial inability not the fault of the party required to perform the act, the time for
performance of the act shall be extended for a period equivalent to the period of delay and
performance of the act during the period of delay shall be excused. Provided, however, that
nothing contained in this Section shall excuse the prompt payment of the Rent or other
consideration by Lessee as required by this Lease or the performance of any act rendered
difficult solely because of the financial condition of the party, City or Lessee, required to
perform the act.
SECTION 59. CITY'S OPTION TO CLOSE THE PREMISES
City may close the Premises without liability and without advance notice to Lessee
therefor at any time as City in its sole discretion deems necessary for the protection of life, limb
or property, or for public health, safety or welfare purposes, or upon reasonable notice to effect
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any repair, remodeling or rebuilding deemed necessary by City in its sole discretion. The length
of time of any closing of the Premises by City longer than two (2) weeks during a period when
the Concession would otherwise be open shall extend the term of the Lease by the same amount
of time. If this occurs, Lessee and City shall memorialize this extension in writing.
SECTION 60. DELIVERIES OF SUPPLIES
City may establish the days and times deliveries of supplies may be made and advise
Lessee in writing thereof.
SECTION 61. EMPLOYEE PARKING
City shall establish the days, times and locations where Lessee and Lessee's employees
may park, and the number of automobiles, trucks, and other motorized and non -motorized
vehicles that Lessee and Lessee's employees may park, and advise Lessee in writing thereof.
SECTION 62. CONFLICT OF INTEREST
Lessee warrants and covenants that no official or employee of City, nor any business
entity in which an official or employee of City is interested, (l.) has been employed or retained
by Lessee to solicit or aid in the procuring of this Lease; or (2) shall be employed by Lessee in
the performance of this Lease without the immediate written divulgence of such fact to City. In
the event City determines that the employment of any such official, employee or business entity
is not compatible with such official's or employee's duties as an official or employee of City,
Lessee, upon request of City, shall terminate such employment immediately. For breaches or
violation of this Section, City shall have the right both to terminate this Lease without liability
and, in its discretion, recover the full amount of any such compensation paid to such official,
employee or business entity. No official or employee of City shall have any financial interest in
this Lease in violation of the applicable provisions of the California Government Code.
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SECTION 63. NOTICE
Unless specifically providing for verbal or electronic notice, all notices, certificates, or other
communications required to be given hereunder shall be in writing and made in the following
manner, and shall be sufficiently given and deemed received when (a) personally delivered; or (b)
three (3) business days after being sent via United States certified mail — return receipt requested; or
(c) one (1) business day after being sent by reputable overnight courier, in each case to the
addresses specified below; provided that City and Lessee, by notice given hereunder, may designate
different addresses to which subsequent notices, certificates or other communications will be sent:
CITY:
City of Huntington Beach
ATTN: Director of Community Services
2000 Main Street, P.O. Box 190
Huntington Beach, CA 92648
SECTION 64. COMPLIANCE WITH LAWS
LESSEE:
Michael Ali
8181 Deauville Drive
Huntington Beach, CA 92646
Lessee, at its sole cost and expense, shall comply with all statutes, ordinances, regulations
and requirements of all governmental entities, including, without limitation, Federal, State,
county or municipal, relating to Lessee's use and occupancy of the Premises and/or operation of
the Concession whether such statutes, ordinances, regulations and requirements be now in force
or hereinafter enacted. This Lease is expressly subject to the laws, regulations and policies of
City. Lessee shall deliver to City a copy of any notice from any governmental entity received by
Lessee regarding any alleged violation of law regarding the Lease, Premises or the Concession or
from any person allegedly entitled to give notice under any conditions, covenants, or restrictions
binding or affecting the Premises. The judgment of any court of competent jurisdiction, or the
admission by Lessee in a proceeding brought against Lessee by any government entity, that
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Lessee has violated any such statute, ordinance, regulation or requirement shall be conclusive as
between City and Lessee and shall be grounds for termination of this Lease by City.
SECTION 65. INTERPRETATION OF THIS LEASE
The language of all parts of this Lease shall in all cases be construed as a whole,
according to its fair meaning, and not strictly for or against any of the parties. If any provision of
this Lease is held by an arbitrator or court of competent jurisdiction to be unenforceable, void,
illegal or invalid, such holding shall not invalidate or affect the remaining covenants and
provisions of this Lease. No covenant or provision shall be deemed dependent upon any other
unless so expressly provided here. As used in this Lease, the masculine or neuter gender and
singular or plural number shall be deemed to include the other whenever the context so indicates
or requires. Nothing contained herein shall be construed so as to require the commission of any
act contrary to law, and wherever there is any conflict between any provision contained herein
and any present or future statute, law, ordinance or regulation contrary to which the parties have
no right to contract, then the latter shall prevail, and the provision of this Lease which is hereby
affected shall be curtailed and limited only to the extent necessary to bring it within the
requirements of the law.
SECTION 66. SURVIVAL
Terms and conditions of this Lease, which by their sense and context survive the
expiration or termination of this Lease, shall so survive.
SECTION 67. MODIFICATION
No waiver or modification of any language in this Lease shall be valid unless in writing
and duly executed by both parties.
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SECTION 68. SECTION HEADINGS
The titles, captions, section, paragraph and subject headings, and descriptive phrases at
the beginning of the various sections in this Lease are merely descriptive and are included solely
for convenience of reference only and are not representative of matters included or excluded
from such provisions, and do not interpret, define, limit or describe, or construe the intent of the
parties or affect the construction or interpretation of any provision of this Lease.
SECTION 69. BROKERS
Each party warrants to and for the benefit of the other that it has had no dealings with any
real estate broker or other agent (attorneys excepted) in connection with the negotiation or
making of this Lease.
SECTION 70. INDEPENDENT CONTRACTOR
Lessee is, and shall . be, acting at all times in the performance of this Agreement as an
independent contractor herein and not as an employee of City. Lessee shall secure at its own
cost and expense, and be responsible for any and all payment of all taxes, social security, state
disability insurance compensation, unemployment compensation and other payroll deductions for
Lessee and its officers, agents and employees and all business licenses, if any, in connection with
the Lease and/or any services to be performed hereunder.
SECTION 71. ATTORNEY' S FEES
In the event suit is brought by either party to construe, interpret and/or enforce the terms
and/or provisions of this Lease or to secure the performance hereof, each party shall bear its own
attorney's fees, such that the prevailing party shall not be entitled to recover its attorney's fees
from the non -prevailing party.
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SECTION 72. LEGAL SERVICES SUBCONTRACTING PROHIBITED
Lessee and City agree that City is not liable for payment of any subcontractor work
involving legal services, and that such legal services are expressly outside the scope of services
contemplated hereunder. Lessee understands that pursuant to Huntington Beach City Charter
Section 309, the City Attorney is the exclusive legal counsel for City; and City shall not be liable
for payment of any legal services expenses incurred by Lessee.
SECTION 73. GOVERNING LAW
This Lease shall be governed and construed in accordance with the laws of the State of
California.
SECTION 74. DUPLICATE ORIGINAL
The original of this Lease and one or more copies hereto have been prepared and signed
in counterparts as duplicate originals, each of which so executed shall, irrespective of the date of
its execution and delivery, be deemed an original. Each duplicate original shall be deemed an
original instrument as against any party who signed it.
SECTION 75. ENTIRETY
The parties acknowledge and agree that they are entering into this Lease freely and
voluntarily following extensive arm's length negotiations, and that each has had the opportunity to
consult with legal counsel prior to executing this Lease. The parties also acknowledge and agree
that no representations, inducements, promises, agreements or warranties, oral or otherwise, have
been made by that party, or anyone acting on that party's behalf, which are not embodied in this
Lease, and that that party has not executed this Lease in reliance on any representation, inducement,
promise, agreement, warranty, fact or circumstance not expressly set forth in this Lease. The Lease,
and the attached exhibits, contain the entire agreement between the parties respecting the subject
49
02agree/Zack's Too Lease/jmf/jn/9/20/2002
matter of this Lease, the Premises, the leasing of the Premises to Lessee, or the lease term created
under this Lease and supercede all prior understandings and agreements, whether oral or in writing
between the parties respecting the subject matter hereof.
IN WITNESS WHEREOF, the parties hereto have caused this Lease to be executed by and
through their authorized officers the day, month and year first above written.
MICHAEL ALI, CITY OF HUNTINGTON BEACH,
a sole proprietor a municipal corporation of the
State of C i or is
By: -41 N ichael Ali Mayor
ATTEST:," -'-
City Clerk
APPROVED AS TO FORM:
�City Attorney A 01, �Jp-dam'
INITIATED AND APPRO
Acting i ector of Commu ty Services
APPROVED
Director Administrative Services
REVIEWED AND APPROVED:
Cffy Administrator
50
02agree/Zack's Too Lease/jmfJn/9/20/2002
EXHIBIT "A"
AKE AVE. HUNTINGTON AVE. :,`; BEACH . BLVD,
Q PIERSIDE .VILLAGE Q HIGHWAY C
COAST G 4
ZL,
PACIFIC G3 7E
GI G2 JAC S BC6 R6 BC7 P KMAJCNBR3C4BR4 BC5RI BCBC HDOS BR2 BC3 ZA K'S
SERVICE ROAD ZACK'S BEACHTOO
DHIGIIT'S VIC'S ( CA[7.AAfAfA) HUT
' 15
L5 LT L9 II BC - BEACH CONCESSION
L 11 FL - BR- BEACH RESTROOM
LEGEND •G-GATE
• PD -POLICE
PIER L -LIFEGUARD TOWER
HDQS-HARBORS & BEACHES HD(
_g P A C I F.I C; C ST H I G H WAY
o
c
r
v a
Lys � vi
.O FC/ w Om� 4-4
o
�O CC) a kD N O
Z��,a J
o R/w
P. E. R. R. �y; \
A N Z 'n
14.75'
i� SL°C1�1 y N
i N tic H
CQ
x
.t X
N 520 05' 0 9" W I� � W
v LEASE Q r
!n
Inc)'
0
0
Month
Inspected By:
CITY OF HUNTINGTON BEACH
Quarterly Evaluation
Year Today's Date
Area
Doors & Locks
Exterior Walls
Exterior Area
Graffiti Removal
Grease Trap
Hood Grease Filters
Interior Walls
Removal of Bird Droppings
Rest Room
Roof
Rust
Signage
Trash
Trim
Windows
COMMENTS:
ACTION REQUIRED:
AGREED TO:
O.K. Needs Attention:
EXHIBIT "B"
Page 1 of 2
0-
'01
DEFINITIONS
Doors and Locks
Clean and in operable position and condition.
All locks shall be regularly checked and
maintained. Absolutely no chain locks are
allowed. Locks shall only be used on
authorized locations.
Exterior Walls
dean and smooth, void of rust, graffiti, stickers,
etching, or other materials or marks that were
not originally placed on the walls.
Graffiti Removal
All graffiti shall be removed within forty-eight
hours including painted or sprayed graffiti,
magic markers, stickers, etching, and surf wax.
The building shall be kept free of graffiti.
Interior rest room graffiti shall be removed on a
regular basis not to exceed forty-eight hours.
Grease Trap
Free and clear flowing with regularly scheduled
maintenance to prevent buildup or clogging.
Hood Grease Filter
Removed and cleaned a minimum of every
three months, and checked regularly and
cleaned more often if necessary. Filters shall
be replaced at such time as required where
volumes are no longer maintained.
Interior Walls
Clean and smooth, void of dirt or corrosion. All
fire -rated walls shall be solid and unpenetrated.
Removal of Bird Droppings
the building in its entirety shall be cleaned a
minimum of every three months to remove all
bird droppings. If bird droppings present a
health problem, they shall be removed prior to
the minimum three month periods.
Rest Rooms (Plumbing)
Entry mats, floors and carpets shall be kept
clean. Walls shall be kept fingermark free. Tile
and wall surfaces shall be kept clean. Toilet
bowls, rims, tank tops, and bodies shall be kept
clean. Mirrors shall be kept clean and streak
free. Soap dispensers clean and full. Paper
towel dispensers clean and full. Toilet paper
dispensers clean and full. All sink and faucet
fixtures clean and rust free. Light fixtures dean
and functioning. Air fresheners functioning.
Trash receptacles clean, lined and emptied
regularly.
Roof
Free of debris and cleaned regularly as needed
to remove bird droppings, graffiti or vandalism.
Roof leaks shall be reported immediately to the
Community Services Department.
Rust
No accumulation or degeneration to interior or
exterior surfaces. Rusted areas shall be
cleaned and painted on a regular basis to avoid
long term damage.
Signag_e
Clean, readable and in good condition. Bulbs in
lighted signs shall be replaced as needed
within twenty-four hours. No unauthorized
signs shall be posted.
Trash
Deposited in designated containers. There shall
be no buildup of cardboard boxes, unused
equipment, unwanted decorator items, etc.
within the trash areas. Trash areas shall be
secured from public use to avoid deposit of fish
remains.
Trim
Dean and smooth, void of corrosion and rust.
Windows
Clean and void of cracks. No commercial
stickers shall be used on windows.
Exterior Area
Outside area around concession building that is
utilized by the concessionaire.
EXHIBIT "B"
Page 2 of 2
�GfCc s %v c C PS.S'. c1.1 —
AC R L CERTIFICATE OF LIABILITY INSURANCE wzooz
PRoDUM (310) 393-947 FAX ( ) 393-71M
White A Coepallly Iasnrapce Inc �l�kv,v�r,
P 0 Boot 70 C
'J t <l j 3 � 3 �'t'}-�
saata Monica. CA 90406-0070 I `�- {
Tewmaa Nude CISR
TM16 CEIRTURCATE fS KWIFA—SA MATTER OF 1INFORUATM
ONLY AND CONFERS NO RIGHTS UPON THE cEwnFICATE
ALTERRTTHE COYCE�RAW BY � POLIG�DBIIAAW.
COVERAGE
etmm Zm* Beach Resort locoqwmtod
9131 Deauville Dr.
Hnatitgton Beach. CA 92646
INSUAMA: Penn =rica
NSUMMa
evsvltMc
INSURM E
TW POI LIES OP INSURAMM LISTED BELOW HRM WPH IMIM TO TM8 VMff ED NAMED ABOVE FOFt TMR PCX= PP'ERIM INDICATED. INOTWRMSTANOING
ANT ANT, TERM 0R COMnOH OF AHY COWRACT OR ORMM OOOLBENP WITH RESPECT Ta WMICH Tft CERTW=E WY IN ISSUED OR
MAY PERTABI. THE NSURANCE AFFORDED HY THE POLICES OESCMW MERE N M SLgk=T TOALL TMS TERMS. EXCLUSK M6 AHD OONOI CM OF SUCH
POLICIES. AGATE LS M S"OM MAY HAVE BED' I REDUCED BY PAW CLAi6.
Tye OF a15YRABCE
FDtICT IMilie31FAIlm"mUwTA
06/04
ZW3
A
LN„L„Y
X CeNWVt0ALoEN&MLVMUTY
C."MMAm Q CECUR
MaS6617
EAo, occLwmlm
s 1 000.Oo
RRG AKWV%wcw
s 200,0001
M®FW(AnroME!!e!!j
:s s.
PVWQ V-&J VftA tT
s 1 GOO 00
GO&-RALa06REDATr[
s 11000 00
GENLAGGRE"'MLWAPPLES PM
F%cr LOC
PRODUCTS.ODLWVPAOG
s 1.000.
AvroMoeueLwum
ANY AUTO
All.owNl:DAuros
ULWA�
HMAUTM
D„�
IHE PARTIES SI
AGREE THAT
ARE THE' RE
"C07iAPAP1IES AF
THE AGENT AND
AN AUTHORIZED
NOT, WARS
EMED KE
REQUIRED
DII�tGG CDES"
NSI81LtTkT
13ROKERHER
REPRESEN
(tNDr-R
NOTICES
THE
OR
���
_
mm
>
eAlumumm"
;WY NOTICE
wroowY-EAACLmE14T
S
RMMAUM
OTNIm TNAN EA ACC
auto ONLY A=
5
S
ex ULaaun
oaxrtt CLamas MADE
MDUCMLE
FMTEM lON S
ATF'RUM AS TO
-161L HUTTOY,
FORUM
tT Attu
EACH o�ulalENcE
s
AGGREGATE
i
s
s
s
wola®les CoIIPEMDATION Ale)
91PLOIIF718`LWtIiT
/V
_
.
of
.. •'a;�+.. i
ML EM N ACCIDSHT
s
_ELAtllFJl9E.ILA EJAP
S
EL D1SEJM- POLICv Umff
S
OTHER
imscmS
REPLACES ALL
QR CER
CATES
. AlrD RAM® AS ADDMONAL AS REPECTS PREMISE
EASED TO NAMED INSURID AT 21003 PACIFIC COYEST IM - PER E DORSMIT CG2026 ATTACH®
EXCEPT.10 DAY NOTICE OF CANCELLATION SHALL APPLY FOR NON-PATPMT OF PRMIUPI
9WWLDMVmTWAMW MOM TIECANCELLIM8rOe6"M
ao•wAT1w1 v� TIC, Tee Isaatlels vaM�As+r s>sti 1B�B110[tauL
CM OF NUNTZNGTON BEACH 30* oAvs+l®TToI IlaneE ro T11E oralTureATo No>.ame wrsEo to Tire I err,
ATM: RISK PIANAGEMENT
C01*001ITY SERVICES OEPARTPENT no xx
2000 MAIN STREET
HUKTBWM BEACH, CA 92646 AInH01d>!eO Ra ITATHe �j
.Pie 75 1 n Fir 1 I e-_ l calN/+� �� �Y cJc p� bi --oc.Al
POLICY NUMBER: NC186617 COMMERCIAL GENERAL LIABILITY
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
ADDITIONAL INSURED - DESIGNATED PERSON OR
ORGANIZATION
This endorsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE PART.
a SCHEDULE
Name of Person or Organization:
CITY OF HUNTINGTON BEACH ITS AGENTS, OFFICERS AND EMPLOYEES
ATTN: RISK MANAGEMENT
C0194UNITY SERVICES DEPARTMENT
2000 MAIN STREET
HUNTINGTON BEACH, CA 92648
Y
(If no entry appears above, information required to complete this endorsement will be -shown in the Declarations
as applicable to this endorsement)
WHO IS AN INSURED (Section It) is amended to include as an insured the person or organization shown in the
Schedule as an insured but only with respect to liability arising out of your operations or premises owned by or
rented to you.
A-PPRO'VND AS TO FORM :i
GAIL IFGTTON, City L.ttorue
By: Depuiy
(O/ ' U/ —
Gt/�1
CG 20 2611 85 Copyright, Insurance Services Office, Inc., 1984 Page 1 of 1 0
OCT. 9. 2002 E:38AM •i NO. 8402 1 /1
6ROKER COPY
i
STATI=' P.O. Box 42dev, SAN FRANasco, CA 94142-0307
eoMPe es,•ai eN '
Pu N ® CERTIFICI M OF WORKERV COMPENSATION INSURANCE
Ii
OCT0EM 9, 2CO2 GROUP.
FOUCY NUMBER lsia9as-aooa
CER"MCATS 10: 6
CER ICATEEXPlRE& 06-01-20a3
08-01-2002/06-01-2003
CI�`SC GF ><i0N'CTi?1CTtt� ItiEllC.S
ATMTc Rxsx XRNAOUGET (Aky)
2000 FAIN STREET
I3tAt 119CMN BERM CA 926i48 21003 PACIFIC Q0A9T HWY
i
Th% is to oew-ly that we have issued a valid Worker's Compensation insurancepollcy In a Born: approved by the Caftnia
insuwce below far i}te poW pored indoel ed
This Policy is not suNed to cancellation by the Fund except upon SO dap advance wedm node to the employer.
We wil also give you 30 days advance notice should this policy be cancelled prior to itf ftam"i expirtdon-
lhla rartMicate of lneurasrxse in cat art insurance policy and does not amend. extend or sitar the eevclsage efferde,M by the
pofldes IlstEd herelm NotwilhatandirG any requirement, terra or conMk3n of any Cvntrael yr other document wbh
rasped to whloh this caMeate et Insurance may be Issued or may pertain, the insursr4e afforded by the policles
deaoribad herein is ssuk4wA to ad "tsarrrsa, ejovs ono. end conodiona. or 6Ud1 pafi 4gL
i
vn:esr�n rrrr:swe I
=WLOY=' $ LIABILITY LIMIT INCLUDINU AEMSE COSTS 1.$1,000,000 PER OCCORRBNCE
i
8140018MC Ti' 02065 ZNTX*LED CERTIFICATE AOLDER.S' NOTICH EFFECTIV:2 uc.-01-2002 Is
ATTAC1-= TQ Am roRks A PART OF THIS POLICY.
I
QVLOY2A
ALI, MIICS Da,A,; ZACK'S Too
8191 nBATYVXs,i.B =;:IM
1tVt+Nl'INOTM Eli CA 92936
1
I
1
SCEF 10285
DBA& 88.A= CA IMM
&PPROVED .LS TO FORM:
GAIL HUTTON, CitY AttOrne3r
13v: Daput.T City LttorneY
12 " to/ %/O/Oz
rEPF-UI: LY I
�4
�Z
4
44
k -e
1. 4-18
J.
5Stiy
14
Z
44, 'lakl
ALI, ml gE
50ach CO'xvqsion 7ACK S Too
(Pormrly ftf_, rt Mayor -Waterfront)
lFormrly cocil & Vlr,3in ia Wheat)
(Formrly Pcorces lca,jj)
n,
vr
V.
170
Y
�jy
e,
%
—J.
0 D, I
AtPtOVED BY C1VlUE� FOR CITY.. COUNCIACTION �'ti'n��•:!``
Dsts .. M rch • L. 1991
Wl Z.[ l�
Submits to: Thr, Honorable Mayor and City' Council t/
Submitted by: M: -hae1 T. Uberuaga, City Administrators: 1
Prope'edby: Ron Hagan, Director, Community Service
f4, ..;
Subject AASIOP`MENT OF LEASE - ZACR'9 TOO 1
Consistent with Council Policy? I 1 Yes I 1 New Polley or Exception
Statement of Niue, Recommendation, Analysis, Funding Source, Alternative Actions, Attachn*ntt:
STATEMENT —Or —ISSUE s'
Mr. Mike Ali wishes to assume the lease of Zack's Too•concessiou
? on the city beech and the present lessees. Mr. 6 Mrs. Cecil Nheet •:' �.
wish to relinquish this lease to.Mr. Ali The current lease has
;.",.four years remaining on its.term
RECOMMENDATION
Adopt the attached Resolution providing consent to assignmontJof'
the lease betwaen the city and Mr. 6 Mrs. Cecil wheat, A nssees of
Zack's Too, to Mike All. -
• ,1 AHALY828 � ,
After nearly 25 year is as a city -lessee, the Wheat's have decided <�,- tE
to retire. They assigned Zack's beach concession to The Meyer .
Corporation last year. There a.•e four years remaining on the
E' Zack'■ Too lease which Mr. Ali will be assuming. Mr. Ali has two:
successful businesses in the downtown area and wishes to expand
into the fast food businers on the.beach. ^
FUND: 40
None
ALTERNATIVE -ACTIONS
Request staff to solicit propcsaIa for the oper/tion of the beach
concession.
ATTACHMENTS
Resolution of Assignment of Lessee's Interest
RHrce ,
}5 "- •+ Y.. dt .fie h'� ti. '` ,�,�i��sY', .� y ..•� xY.a��'yti••vS�'SR����i�'y�`3tr�a���SA: +�#,
.* 7'i Ary i i ,y'i+S*4r.. f d k .'t ra, 4 f ..• #• K , M4 4'.d i' 4•k
Yd r4. .X . +YJr n k 'h--c C ,iJ ♦ Yr a. { t ad, niY �l r r+ S.
�r - '` P •n.Y� '? + as '13,ia. s t ��srF1v . dr;r •mot Nt.
c t s : A- 'k• � •a `r.,i� �i �!• �. .. `��� Cr•� �t t � ,rd rg-r- �. l 1 -.y •
ti r . y a. r•, .. � T • 'V,� �, 2r t, a`��' 44--t"� � m '` ��!
r � 1k�
' t,n'! e ':t � .a���u t .x,k k�;, � ��'1<'�•sk: r *xF C°�,;,�A'ty`4.::r.
ffJ�111• �d � �4
r V - � � tY�M1 �'• s,,7 �) st S, • J
�t' P �• ply, L,•„`rr.���F�k°i"��::.
..ti �,�� � � .{ t �.rt r t,f .•�,� y
t may'
{ r
��ry. V'N r �� � r r, � 1 � i•� � FM �. r F�.'1
q • Y t
kt i Y
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E^1 ♦!ham
'6.i i it yp ��.ti '`.�r' i� rl yCg.�a iv"•;ye
v t: •� 1 ' §fir
^ r5, rsxht ck } ,:
.l u r +r
w t _
iStroats 1-1 P� ry r`A Ste'�>I P. I •1�u�
month by,LESSEE in, on, or.from said premises, The rent specMed
in this section shall be pa1d.by,LESSEC-i.,) LESSOR at '2000 M a I n
Huntington Beach, }hY+tl R3 `yi} •s.r..
o places as LESSOR may from time to time desiqrzte by written- -
notice delivered to
within fifteen (15) dAys after the c
nd
r��V t'•N.'•s• •.
a fif
i.. •d 1 . t -)mputed were made. A late fa ty.`r 1•t' *:• r n
g ♦ Jrt � } r
r�s;s Y aC�
charge
{ Bznk of America shall be added on
1� to 4YS' G'�•;
Ajyf""'A}�hr' `.tt f�•the 10thFor the purposes of this '.rticle, the term 'gross sales*
Section 2.02.
�� � ors � `�� : a. ��+ �14 i -.. :x '�'t•'
r,�l� F+ � y�.... � .� o ••� f�• 1. dti t•2*yt ). '�is� -.
Rs'^'y .• 4 :t. a - ; . . � �t °�} K+f •a' -fir 7 c �, �•
1 •"�" • ��� yT. i .� d err+ :k: •, it i4 k•, ��+4 a i4f'... ?'Yp:.t;..v
Y , .a• ire a rhrt� v.M1 •. r. ypi�r, s i tt r���,�
- +2"'.�•i35' h� 4•t .. z.x ty„tl�ii 7tr. �.. .iii.yt4 i `f-` r I:,y ti . rc ?�ii+'`ih�`9�Xtly t-•�ti` a•`��j *s1 r • '
��,�•a.. r{{7 Y•^t^dt:-�o'�iR-•i!+.:3^,-rt`J'.•: t- •F« Ay,F�L�J • 4,}rr,. t<f.i�. 7Xr... Y, t� 4',{,ft., t',#�'• ,•
i a•r•",. � a f v 2' Y 9. 2.� � � 1 �' f! 3� � sY" tr r.
�. ,ly.r t�.'� �.�•#�+•L"lr ft', rr�`+,�:'"�, rt�0�',�;,,� ♦ y, - +���.7"� T' • �� C t, #'4+� ��, �, 4'��'ry�'�'1�^��'' cif �' „c r:,T i• ..,� =J ;•E�
•, ^9 >. 1 t� ) •r ^� •� it ���y`�+•cs �• .<.i-t.�'}r. 6i i r I�r.
• r' Y r s .,� ^ r a •� 4`�-r {•� - ''i '7 +,r t�!• � •,i:,T• i l•
v: e t i `r s d ? F f• a.s� i' 1 £ s tS»i 1
:t r V .t i '•1 ,T }•^, +'+�. 3�, ap" .fir '•i -{ L 3 -}�; Yr
i': t. t,e R • ;fit t.r?„4 `'t i° ��+>;r -^` aa^'• •.1y`''vt,+. �'. %r. 'ii ,�;• ry - �', ::'r ,.�F. ••S
'-�t� r ;#�fft�ii'.r'��'''r� .}"�+''i+<.+. fi ��`•?tRi.�«3r�s�:� �J�t�- �'•i'4:����� 5t.'�ti.o-; s.:< ''i- 'i _ .•.}�
it+$ x`. J�'�W �a d.r :� k a� .:E K �< ► .� +• r,�tk i_c ,•;e • r , a f 7! • �/ . • { !' `< • s
t •wi. .n !•',,, #�y r� i • � �� w .t • `:�.� " �.:ti�i"+t L;ti�•� �e� f'p` r .;� •� .� � �+.t" .rs `pp w ! S +'r �'.:• M`' 7 . > RR
c:� • "ta �-'�*. ' :" w•J, 13. «,x*�cj 1,. t' ti.,;,.:r� •� '�� •�' i � �` ?�c�'��!yi.l . t �:yt �zf 3'- !'iY . _yl,�.:.•, t. < .r...J,
� < 3,. -., x qa t�,�. i �• � a' .,,� •�S � T�• a •s isr +•tr. s.h ► r. k � j..iEr '�_ a '� r•
i t � n �tk� + ti h � ! rz :<e 1..�. �.•y tf r s ,r n .� �Sm3, '"' i +•' �.; i r."
r�5aafa.
, •y..• `�• }'+t)iM ��,c+ SF t r• 9 n ,,��'r.,a. .•,y,� '� •,i �s 4r r� •r�'¢.ihr�• 'i���!' .. �, �, er y. r ..,t '•7
i�,." ..;+ � Zrir. .'�a # ��Y+C° 'c9•,� �r. �E;' 'r^.� � a'�;aa r "�r:.,r,. C �d �•4 �E^r �1L•. rin w.G Yti � !•fay+ X'.. !'_ e'" �Y 1 ,. r; .
q •S •ss•. 4 { � tx � �` t i �T�y '�r��'yy- '�3 C +�ri. � C i?': �r�X •
��: � i�r� sr'r,. - � -•r ._ `^ '` C�� !t w•3 �� •I•,.A• �� �1':. s ti. 3 r� r .4 �.
r
p'' 7 tfli. r,;.�r t'�s`� �� r� `t � t tY+ • a•••• � z•r r T �• Jr
6 \� JT >'sJ 1 ' •t ,L.. .► 1 '• ti Xt .f i _' •• j h I .'s-`•:"�; •, ! { t r
3�T••� ,�. 1 S- , y^ �+ mot'. t r � jr.
i. 1 O
��•
{`e
- � r
` S
1g'l �y.-
lJ'1.(,. `�,�. '�
.. ,i fir.
the
shall mean total selling price
of, all merchandise or oervicea.
sold or rendered in, or property
r
rented on, of from a a id. premises + by s"
t LESSEE, his sublessees, licensees,
or concessionaires, whether for
r }W,-
' (b) Commissions received by LESSEE from such automaf�ic
vending, weighing, and other machines not owned by
NZ
Y
✓ si LESSEE but operated in or
p on said promises; , --
., '*4.1,`.:.t•,fi°5:. ,cat deli r. !n1 rn,ere1-4— ....,.. I,,.,A ►,.. •�nn�� r_�_ `�- -----.. _., ..
-
rF?�§ from, in, or on.said promises for merchandise or
services to be delivered or rendered of; or from
yF� F
1
sources outside, said premises; and ,
(a) Proceeds from the beach
renting of oquipment of any
kind from said promises. tP"
`
Section 2.07: 4RQSq SALES-ZXCLUSIONS
i� have been
included therein or have been included in a prior•
' computation
of "gross sales' on which a percentage rental has been
+
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paid under
f
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t y .y iC iY ♦3 •' !-. I1 y4 .,r � r' 'Q : r ,t� z.J �• •
.• � FY Ste_ 1 � Y .. � r '� �. 1
p.a .*'+. .��., �'. .\" }. .S• a r s is -
K'A �10
' to LESSOR a true and accurate statement signed by LESSEE or by
authorized employee of LESSEE showing the total groaa sales made
during the preceding calendar month.in, on, or from said premises
s-` and the amount of rent then being paid calculated on such gross- ,.
sales pu:suant to this lease. LESSOR.may at any time within "three-
((3) years after receiving any such statement, at his own coct and F
expense, cause all books, records, and cash register tapes described
{ •r
,. in Section :.04 of this lease for the calendec.month purportedly h ,'
covered by the statement to be audited by a public.or certified
r. -
4r public accountant selected by LESSOR. LESSEE shall on receiving +
nritten notice of LESSOR13 desires for•such an audit deliver: end
make available all such books,•records, and cash -register tapes.to
er the public or certified public accountant selected by LESSOR '
a1 Furthermore, LESSEE shall promptly on demand reimburse LESSOR for
the full cost and expense of the audit should the audit disclose
that the questioned statement understated groan sales or the rent
payable because of gross sales by five (5t).percont or more `
ARTICLE 3. USE OF PREMISES
Section 3.01. PERMITTED USE
�t`i.Sf� ;icti Thn nrwrnlene ern lot fnr tha nurnnan of nnnretinn of a hnerh .
��� 'pYti�s wryi 8iy��6yy a �� �i •• •�.
��• �5dthe public or public safety. The prices for the merchandise sold♦��}J i a{ q..
��ff•• }J• k ; } S[ I
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Section 4.03. REAL PROPERTY TAXES
All real property taxes or possessory interest taxes and
•assessments levied or assessed against•sai.d promises by any,..t
governmental entity, shall be paid before they become delinquent by; 4
LESSEE.
ARTICLE 5. MAIQTENANCE, ALTERATIONS AND REPAIRS
t �w:
Section 5,01. MAj=HIf3CZ_2YLUSEE
LESSEE shall, at his own cost and expense, maintain in good"
l =3"
condition and repair the exterior roof, exterior. walls, structural',:.
supports, and the foundation of said premises including window'
• ..r
glace.. •In the event that LESSEE !ails to so maintain such. items,
',.
' LESSOR -shall promptly be reimbursed.by LESSEE for the full 'coat•of.:.-.
any such repairs made by LESSOR. r W
Except as otherwise expressly provided in Section 5.02 of
this lease, LESSEE shall at his own coat and expense keep and
maintain all portions of said premises as well es'.a11 improvements.,_:;
on said premises and all facilities appurtenant to said premises 'in +'
good order and repair and in as safe and clean a condition as they'.
were when received by LESSEE from LESSOR, reasonable weer;and tear.•
3. also excepted.
Section 5.02. MdINTENANCE GiQN wINDON GLaiS
LESSEE shall, at his own cost and expense, repair and replace,
any glass in any show window on said premises that becomes broken
regardless of cause, including show window glass that is broken by.
4 fire, by act of Cod, except by fault of LESSOR, -or by fault 'of -•st .ie
employee or agent of.LESSOR. Furttermore, LESSEE shall at his owns-'-
J:. cost and expense at all times durinq the term of this lease carry,r Y'
- 7 - e
=f.
Kq
w. adequate plate glasR insurance on the glass in all show windows on.
said premises to rerforn the repair and replacement requirementsof,.
this section. Shuuld LESSEEfailto repair or replace any -glass
insurance on the glass in show windows on said promises, LESSOR
replace or repair the broken glass or secure such insurance and
LESSEE will promptly reimburse LESSOR for the cosh thereof .and ,pay.,>,.
at the rate of ten percent
-LESSOR interest on such costs .(10%) pe rc per
annurdat-i from the date the costs were incurred by LESSOR to, the e,
they are reimbursed to LESSOR by LESSER.
Section 5.03.
LESSEE shall not make or permit any other person to make any5t,
Ai
alterations to said premises or to any improvement thereon or
A
first had and obtained. LESSEE shall keep the premises free and
'N
;clear from any and all lions, clotimat and demands for work
performed, materials furnished, or operations conducted on Raid
V premises at the instance or request of LESSEE. Furthermore
any -and
all alterations, additions, improvements, and fixtures, xcept
furniture and trade fixtures, made or placed in or on said' prerrises
by LESSER or any other person shall on expiration or sooner
r>R
termination of this lease become the property of LESSOR and rema i n
A .7,
on said premisen, provided, however, that LESSOR shall,have the
option on expiration or sooner termination of this lease of
A requiring LESSEE, at LESSEE'S sole.cost and expense, to.remove any,
m
or all a uch alt arations,.additions, improvements,• or fixtur es fro
�j
said premises.
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Section 55.04. 1H5MCWAJM--LE2=
permit LESSOR or LESSOR'S agents,
LESSEE Shall
representatives, or employee$ to enter said premises at 811 till.
reasonAble times for the purpose of inspecting said premises to
determine whether LESSEE is complying with the terms of this lease r", W A
6L,
and for the purpose of doing other.lawful acts that may be
-Z
.0 protect LESSOR'S interest in said promises under this leage. or to
-Q
9 under this lease.
verfnrm LESSOR'S dutie
Section 5.05. SUM,11DER
on expiration or sooner termination of this lease, or any.:
extensions or renewals of this lease, LESSEE shall promptly
surrender and deliver said promises to LESSOR in as good condition
asonable wear and teat
as they are now at the date of this lease. Re
and repairs herein required to be made by LES=�'. excepted.
ARTICLE 6. ZNDEMNITY AND INSLYRANCE
Section 6.01. UQLD--11AMP-RR QAUSR
LESSEE agrees to indemnify, defend and hold LESSOR, its
officers, agerts and employees, and the property of LESSOR,
including Said promises free and harmless from any and all claims,
liability, loss, damage, or expenans resulting from LESSEE'S
occupation and use of saiti promises, specifically including, without
limitation, any claim, liability, lose, or damage arising from the
passive, concurrent negligence of LESSOR, but save and except those 3
whi6h arise from the active concurrent negligence, sole negligence,
or sole willful misconduct of LESSOR, and including those arising by
reason of:
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r -Y sit�C, f t 7 r ' �, � - i •,rr �l `.= S• tf i • � S'
M 1
iffiv"WO NO
(b) Terminate this lease by 'giving LESUE written
notice of such termination..
Q. N
Section 8.0. 1Li51U1AXCZ_P.R==
Any insurance proceeds received by LESSOR because of the
total or partial destruction of' said premises or the building wit
4
said premises shall be the sole, property of LESSOR, free from any
CleIme of LESSEE, except any and all insurance proceeds, including
-
11N,
business interruption insurance which would ordinar
ily flow to the.',
b�,nefit of LESSEE.
f4v,
Section 8.04. ABATEMF RENT -Ia QY,
ti thould LESSOR elect under Section 8.02 of this leas
e or". PC:
required under Section 8.01 of this lease to repair'and restore sald,'
premises to their former condition following partial or full
(a) LESSOR shall have full right to enter sala,
f
remises and t
P ake possession of so much of.said 'q
premilles'. Including the whola'af-said premises,
an may be reasonably, necessary- to enable LESSOR.
promptly and efficiently to carLy.out the worh of 4c;z�..
repair and restoration; and (b)The percentage
rent described In Section 2.01 of this lease
shall not be abated for the time LESSEE is e -1 .4; -
N f eat
prevented from using the whole o d promises.
r
Section 8.05 ATIO11
4� Should, during the term of this leate or any, renewal or
r.r.
extension thernof, title and possession of all of said premises be
taken under the power of eminent domain by any public or
17
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\7 •'�•. J ,• a'J00.1 J••� �. •\. R _ .. '.fir -A•
' C - i•~ a p i
''.
r
-
not encumber, assign, or otherwise transfer this
interest in this lease, or any right or interest,�-
any of the improvements that may now or 4
icted or installed on said promimes without the
tent of LESSOR first had and obtained. Neither.
said premises or any part thereof or allow any
than LESSEE'S agents, servants, and employees to
i or any part thereof without the.prior written' --
A consent by LESSOR.to one assignment, one
)ccupation of Raid promises by another person,
to be a consent to any subsequent assignment.
pation of said premises by another person. Any
nent, transfer, or subletting without the prior
'.ESSOR, whether it be voluntary or involuntary, --
or otherwise. Is void and shall. at the option.'.'
a this lease. The consent of LESSOR to any
mnt including occupation or transfer hereof.of'
a this leaso or the subletting by LESSEE of said
f said premises shall not be unreasonably
�ESSOR shall have ti: right of first refusal. In
assignment. sale, sublease or transfet hereof
ise o: refuse such right in writing within thirty
r LESSEE. Such right shall not apply, however,
%afers, or sublettings to immediate family
i family trust. or to any corporate entity of
F of LESSER'S immediate family, are sole
21
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:a waiver of any subsequent breach by LESSEE either. of the same -or
another provision of this lease.�y ;
ARTICLE 10. MISCELLANEOUS
Section 10.01. FORCE MA,7EURE—ILi1AV01DABLE QZLUS
Should the performance of any act required. by this lease to:
be performed by either LESSOR or LESSEE be prevented or delayed by
reason of an act of God, strike, lockout, lei>or troubles, inebilily� � .
+ �c
to secure materiels, restrictive governmontal:laws or reguletions�
or any other cause except financial inability not the fault of the 4>
party required to perform the act, the time for performance of the air
act will be extended for a period equivalent toq.the period of:delsy Y
and performance of the act during the period of dolay will bo
excused, provided, however, that nothing contained in this section Y°
shall excuse the prompt payment of rentby LESSEE se required by:, y^�
this loose or the performance of any act rendorod difficult solely
because of the financial condition of the party, LESSOR or LESSEE,
required to perform the r.
Section 10.02. £r•.r OF PREMISES — MAINTE6tAN(;E�EF'Sl$iT Y�
(a) LESSEE shall paint, stein or seal the preiniaos• stucco, .
trim, etc., a minimum or every two years, unless it is F
determined by LESSOR in its sole discretion, that such
work shall be done once every year. All exterior motel
surfaces shall be painted no less than once each year
except the roof. 4 '�
(b) Any and all graffiti shell be removed by LESSEE at'it's ;
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ant is required to maintain the-concessi6n roof
luding all materials,and repairs to,LESSOR'S
XAR—S-ERVI-CE.6
the event the Mayer Corporation requests that
:essioneire provide goods and/or services,-thi.co
any such request shall be charged to and,gaid b�
MAyer Corporation on a *cost-plus" basis'."P
ERIOR MIFICATIONS
the event the LKSSOR requests exterior me
w
Lhe building on the premises, any such ork shal
ar during the off season and inevery way..se k. to:�',:
imize any disruption in LESSEE'S business .:ny and
costs for such modifications shall be pai#3.,by the,-..
SOR or its n6mineei No such cost shall be paid.by.:.
nesionsire.
L11HATION
addition, the five rear term is subject to
Tkinstion by Lessor upon one hundred eighty (180)
a written notice, if during the term hereof, the-..:
lementation of a revitalization plan affecting the
Bela operation occurs. Lessee is hereby granted the
it to participate in such revitalization pro . cessi,
will be afforded the.opportunity to continue to,"
pursuant hereto so long as Lessee meets
torls reasonable requirements pursuant to su h
,talization plan.
30
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lid premiceai
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t following , items, • and
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,uded in:a:prior ,�.
ventage rental has been � i.,
y t4.
wise includable
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Ida
OR may at any time within three
statement,. at his own cost end
and cash register tepee,describedN'
:
he calendar month purportedlyz.
ted by a public or certitied�
IR.. LESSEE shall on receiving"',
for such an audit deliver and
rds, and cash register tapes 'o
untant selected by LESSOR
on demand reimburse LESSOR
dit should the audit- discloW-,, :,',
ate[ed gross sales of the rent
{ d V .
ive (51).petcent or more.
c
i OF PREMISES
t 'c of r YY v'
purpose of operation of a beach
4y f`
iae, food, rental of beach`
"
ay from time to time be:approveC'
Yes the right to prohibit the
le which is objectionable. or °r_'<< `a'`'
,x
necessary for proper service to.
rites for the merchandise sold
beach and water equipment shall`t: `
rves the right to establish and""
a•
for any or all items sold or `" s
vided, however, that such.'1 '
ied by LESSOR shall be re aaonable,r ,
rr
s '
7 tT !
i�
I
s�I,
V I
A
A.,
he beat interests of the jpublic,'the.LESSEE,
-
fg,
.E 4. TAXES AND -UTILITIES
ME14T OF UTILITY CHAR
GES
and hold LESSOR and ihe"6ope.rty of LESSOR
all charges for the fuFnishing.o
phone service, end other
publi 4ti
.term 0! this lease or.any ,extens
arbage and rubbish from said.pri ise url
r any extensions
, RSONAL PROPERTY TAXES TNV
" before they become delinquent *.,'-all f'taxes,
arges levied or imposed by any go i'r'nment,',
trade fixtures, appliancesand Pxo
by LESSEE inp.on,,orabout-saidmpremise-s
Ing the generality of the other"ter . ma
'yault doors; wj Ives, counter a vau Its 11
res, Machinery, plant iquipment, ."offici tP
radio antennas, or. communication equipment,
by LESSEE. YvA,
4
AL PROPERTY TAXES
taxes or possessory Interest taxes ,and
Bessed against said preminia 6
11 be paid before they become,
..........
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onaire of LESSEE On said
1 r
said premises Yor material8 oJj
ises.; at the• instence.3or i
ny agent •or. employee=ofti
4#T R
rform any, provision',of thus dry'
' ... . • i.i 1 3 of 'iiJZiy {
h any requirement of;law or,�g�
d on LESSOR or the leaaed,
uthorized governmental
bdivision r fsl+,skE'�
his sole cost and expense hr
is or. attorney fees: sy
}
sation insurance and, ft '
SSEE shall; obtain and
policy covering the said
4 4�?
lacy of: general' public' -#yp
cle coverage. Said.policy�a g.
nta and employees, while
against any and all claims l '
he said premises, and ahall'
lowing amount:, combined 0,
amage, including
nd blanket' contractual,,,
if a designated aggregates
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0
f
jr
4
}
'
a r
i.1-aw `�' t ^,•..ra. rra,• l '`Qs: - r wKf `
i a tihrY d$ r W sr � =• �c.. ±.�15?.dr, � a r
ng for, the purchaee,of
on oP'said�premisesi".
nterest in all, tiede.<.:, ,
1 .y
now or.hereafter placed''
the ,faithfu].perfor mance;xrr
of this,:lesee'to Des.
.t
! removal 6f trade..
Section 7 016f-,this:
time for remove],LBBSSS:
ase.;.LESSE mey,; -
n pecfocmance,oL thio
it free of the security '
ecurity interest will
trade flxture.�4 On ill ° 4j
this lease,to be €
ly have, as to the t de 6
d party4 under the Uniform
RCS , r
Article that are not ';�.5` fYe.
thirty.(30).-deys altar�x
dless o!'cauee, of,thisy!�
nd shall automatically
he real, propertyito whichvh '?,
�J,
the lien described in�r �r aSr
nor permit any Othe[w"
xterior door,
J
ti
a
QN
n t
;;
A'4 +!+ 9 it � L♦ fa� 4 H+A 't: 'F.s t?•A-A3.`.
y!'S
xe7TA 4
'+ + � e� + a \ % tin � ei T +�•� � r .E � � r,
• '',Y� +�1 , t rr w Syr �t y �'R ti P.
0 7 _
person in or About said premises with the
implied, of LESSEE that kthey'cannot' be
. �"�''. ..'fir"', Ytk _r'.�`,S `h-f �1 �'•... f.
o their former condltion`within one _hundred ,
aye, LESSOR may, at IE8SOR'S.option!',�:'
tom; *�Wt .
tinuo this lease in full forceA,I and effect Dy`r 1
' of +; b-tom �r�k•. • '
a{.ring and.restoring,,at LESSOR'S own cost and
ence, said premises to theirs ormer condition] f.
'.
minete.thls lease by -giving LESSEEMritten
ice -of such .termination
INSURANCE PROCEEDS
roceeds received by ,LESSOR because. o the ,t� '.,
uction- of said premises or the building on`
the sole property of LESSOR, free from any C
pt,any end,all insurance proceeds,,�includinq, '
insurance which would ordinarily flow, to the�3
r
h
�v4 �.
ABATEMP•NT OF RENT ,N 1 L
+ T
lect under Section 8 02 of this lease or�be
8.61 of this lease to repair and restdre'asid ,
er condition following partial or full �:,?�
emiaes or the building on said premisesi n
.+ [� G
SOR shall have full.right to enter said 3.
nines and take possession of'so much of ebid�;{
nixes, including the whole of aaidrypremises,ae/,
be reasonablynecessaryto enable LESSOR
nptly and efficiently. to carry out-the,work
iir and restoration) and
16 - '" y ( j
���
1 3 �
1
S
- 4 .
a
i
e
M � Y
p �6 }
(b) The percentage rent described in -Section 2.01',6f-'14 yr
this lease shall not be abated for the time
LESSEE is prevented from using the who
premises. y
Section 8.05 TOTAL CONDEMNATION
Should; during the term of this lease'or any,renewal,or,F
nsion thereof, title and possession of. all of, said ,premises_be'`'�
n under the power of eminent domain by any public
i-public agency or entity, this lease shell terminate:ee oiry �.t
1 a.m. of.the date -actual physical:possedsion',of aaid;premiaesa'?'r
aken by.the aqency or entity.exercising..the power of'eminent��f,
in and both LESSOR and LESSEE shall thereafter. be reIeaaed lro� .,�
obligations, except those specified in Section 8 09 of this
3
e, under this lease. Am
SectionS.06.' TERMINATION OPTION FOR PARTIALCONDEMNA_�
`r n.:
Should, during the term of this lease orany renewal
nsion thereof, title and possession of only a portion.of said
ieea be taken untler the power of eminent_domaln by any puor4
i-public agency or entity, LESSEE may, at LESSEE'S option,+A.'
iinate this. lease if more than five percent,(5t)'.o! the ground a,
(or floor apace) or more than 10 percent (101) in value o!'said :
iises if taken under the power of eminent domain LESSEE hall`
case his option by giving written notice to LESSOR within
after actual physical possession of the portion subject to .theme
ant domain is taken by the agency or entity exercising therR_.�
r. This lease shall terminate as of 12:01 a.m. of the date'ther�,,# "
ce if deemed given to LESSOR. r
�vk
- 17
c.
•^ �...'i �,l - err•, :+. 'd. :r- :.
'� w L, +�t•a t a �.L v! kt.. Qrr Fi,{ �_�♦�3'F,S�a• ♦i-.,
i t :/'• .i SS i rid•'!'.
i 4 y y. iT `xr. wh 3 J F !
! % tx
4..s
,a �' '� f}1 t".+ d,'.d:t sc*eFly 'a'�"7 a.i"at3-'�r•.�r 1C,, ,�
FL`s'a�vS.p x F,t3A''•
t ••. ti ittg � � i
t
4r •' s?.1 �� a
1 r 'lt'Yd
4X
�r e4ai3 ytfilr�
Tr
r •`i'K �k fry 1 A�) �^ t F ,��'t
Y a . !A ri45 ' yY�•�1`�`irf �7 bI
iu+td�' eEa„
r
� y � Y• • ��; �✓`.per ^�� `�. S'S �
t1z r,.l
Atl
f.Xy
{Ll
a `} l i,, x4 • .i „mili promises
r x .7.'a'�
ilt'� 4' ''f r1�T
i1, i w Ab
Ask -'s- compensation
Fit
4`
{ , ! era ,r��,.'•) rc'"'� �A?! i^-r{}:��" 't, M�
✓ II � i •�y� jk� ��y�� ��T. r ; f$ �'
�.^� 1 Jt' t .J F i } lr."•. ���^� V.
14.- �.•� t i f �+�
3� 1• Otis A
R• 1 ���
s C b ` '
t*• Ii ri
r
Orr
04
D7. PARTIAL CONDEMNATION WITHOUT TERMINATION "as Li!
SEE fail to exercise the option described !n ?a *}F-
his lease or should the .portion of said premi�eaj
111
S •'.t:C
Dwer of eminent domain be insufficient to yive rise
cribed in Section 8.06 of thia lease, then,'in the ,*
This lease shall terminate'as=to the portion of- ,
i yyx 2 Yr
said promises taken by eminent domain as,o! 12:OL
a.m. of the. day, herein called the .*date, of`, "
taking,''. actual physical posaession'o! that
portion of maid premises la'Aaken by the'agency.
or entity exercising the power of.','eminent domain.
LESSOR,. at LESSOR'S own cost and, expense,. -shall=
remodel or reconstruct the building remeinington
the portion of. said premises'not taken by a ine a r� `
.domain into a single efficient e[chitectural unit 'io
as sooa.after.the date of taking, o[ before,'as',. t
can be reasonably done, provided, ''-howeo v` rill ),at.
the percentage rent, specified in this leasr sha114
.be abated o.r reduced during such remodeling andx}.•_
reconstruction.`
Y r �
V
)8.CONDEMNATION AWARD
ring the term of thislease or.any.renews I or x" .�" #
title and possession of all or any, pot tion, of
y�i
:aken under the power of eminent domain by`any x
iblic agency or entity,, the portion of 1the 4,7'1 `1
images for the taking awarded to each of the;;
' - - "• ''. .•; F.J 'tom . ;r 11` ? .:. � � P� .
Lase, . L►.SSOR and LESSEE,' shall beloug,tor paand be` they
•
T +
sole property of the party LESSOR or LESSEE, to.whom it is awarded.
LESSEE shall be entitled to that portion of the compenaation.or�
'i-
+� damages awarded for the eminent domain taking that.repreaenta,,,(1),
'r the 'reasonable value'•'of LESSEE'S rights under this lease for.,the
iM unexpired term of this lease, (2) the coat or loss sustained by
,LESSEE because of the removal of LESSEE'S,merchandise,-'grade a
{fixtures, equipment, and furnishings from the portion of,said.,
premises taken by eminent domain, and.(3) whatever other �,-,4��,
compensation end/or damages which may be,usual end customary,tb-
.a �'V �y� LESSEES. under .the circumstances. ,lF''•f�3z�, �"
Section 0.09. ARBITRATION OF CONDEMNATION AWARD';
Should separate awards not be made to LESSOR and LESSEE l,:c,
{ the taking b eminent domain of all or an portion of said g y y �• presiisea
'. and should LESSOR end LESSEE be unable to agree on the manna h e
<<s r .. ,q
TP
total award is to be divided between them, pursuant to Section.6.08.'
of this lease the proper division of the award between LESSOR and"'
LESSEE shall be settled by arbitration in accordance with the ruler
�'•` •promulgated by the American Arbitration Association `Each petty �
,shall appoint an arbitrator and the two arbitrators so appointedy `
[ shall, within a month after both have been appointed, select agyy�`t.hiri
,•'L T�
.,,...arbitrator. The decision of any two of the three arbitratora-in11,
writing shall be binding on both LESSOR and LESSEE. `Should no.. W0
arbitrators be able to agree within one month after appointment of,,'
?:r ,.the third arbitrator, the report of the arbitrator most favorable tc
M
.LESSOR and the report of the arbitrator moat favorable to.LEBSEEu
shall both be disregarded and the report of the remaining arbitratoe
shall be binding on both LESSOR and LESSEE. Should either LESSOR oe
,+.
LESSEE fail to appoint an arbitrator within fifteen (15) days after
TT R y f
i -19- `1!i
IM
r � • j 4 YI L ' to
. .r
sfk
-
4-
c,
.� r� _ 1;. •• p
1
} s la�•�, f
4 it \ ,",f � �;• '�.:
SSEE. = Such right shall not .apply,,, owev.er,
7+ ; .^I [•'.�� sw yNj "Sid �: .
!ra, or. sublettings to immediate
mily trust,,or to any, corporate'entity'of
LESSEE'S immediate familyi1are sole
,BANDONMENT BY LESSEE
each'this lease. and .abandon" said.premises
r>4�'
:piration ofthe term of t is lease; LESSOR,
inue this lease in effect.,by not terminating;
Ws right to possession 6f..'said premises,
!h event LESSOR shall 5betentitled .to enforce "
his rights and remedies under this leaea,�
• ."w r ,.„. .. :.
uding,the right to recoverthe rent specified_,
his lease as it becomes duaeg.unde(E,r`this leaser ?
inate this lease and recover from- LESSEESr$"�`�.
The _worth' at the time of`award of Ahe.
unpaid rent. 'which had been earned at ths�
time of termination of the leaser,y
The worth at tho.time of 'awardA:o! the
amount by which the unpaid rentlwhich would„ 'rt;
have been earned otter termination of the is
lease until. the time of award exceeds Ahe
amount of rental ,loss 'that LESSBB''�
proves,
could have been reesonebly avoiEedr
The worth at the time of award
amount by which the unpaid rent.for
r r 2A 4�x'
21
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�{ �• N ; • •t �•: v Y ka. � Y / 4. t�,ry' .ley c,� 'd�rTir�� 2 3�a r �y �' tom. YJ t ,� a- 'L�- • ♦'
• � �`- sz i rfy a1 . ` + •t� 7 1 ' + � z -r,; '�e • a.. • ayj �� ti �. � t s "`' ¢, k. �� _
•, a Y y f { r. �-.. w- 'ti• ,r t Yk - _ 'a -r r \ ,'
'� \ -yet. •' i `- y y ..Y�V 1'", r!i1.� �: to V� rip �y .} iZ 1l' S � . f J y•. + 1 >•
`� 'r' �s tS: a�'� 11 •lit' �'�•.+.',s+,r,13`�, ¢���'7r7� Kr.��h ,'��=r �}�•t, e. rtf.�,4 .A '«-.��' 3r�r, ••) '+'.ey!.+�:�. �', sC �-r r ,ttiK. �-y,}`s'�'••, 1�'1 "Mt p N� �` •. tta •' - . .v
provisions' of' this . lease shall not constitute a continuing waiver lors X.l
a waiver of any.subsequent breach by LESSEE eitherofAhe same
4
another provision of this lease
LE 10.'MISCELLANEOUS':,
ARTIC
Section 10.01. FORCE MAJEURE . UNAVOIDABLEDELAYS R
Should the performance.of any act'required byth ii'liiai*1"'i
be 'performed by either LESSOR or'LESSEE.be prevented ,'-,or,delayed .by
reason of an act of God, strike, lockout, -labor ttoublei,.'in'a+'bi'li'ty
Lto secure materials, restrictive governmental laws or regulations"
,.or any other cause except financial inability not , the fault
party requirid.01 perform; the act, the.time.forperformance oi-the `6g
act will be extended for a period equivalent.,to the period of delay��;.
and performance of the act during the,period.of..delay -will
excused,"provided, however, that nothing contained ln'ltbii
shall excuse the prompt payment of rent by LESSEE as required
this lease or tie performance of any act rendered difficult
because of the financial condition of the party, LESSOR or LESSEE, ,',,,�,�,4
required to perform the act.
.1
Section 10.02. CARE OF PREMISES MAINTENANCE -DEPOSI
(a). LESSEE shall paint, stain or real the premises! stucco,"`Jlp-
-'
trim, etc., a minimum of every two yearer'it Je'..unlees,
determined by LESSOR In its sole discretLon,'that a u c'h
work shall be done once every year. All exterior metal -
surfaces shall be painted no less than.once each' ,year
except the roof.
(b) Any and all graffiti shall be removed by LESSEE
own expense from the leased premises within' forty
notice thereof. (46) hours' 4-
23
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(�) V.
K' LESSEE'S RIGHT TO RENEGOTIATE LEASE y4rh, y
RY' Y e,
If, ,in the event, ,LESSOR shall at some future lime-+
• s .fir , ,�-� .y .�„�. _- : y "r..: a'�,>�x r° ,. -_� ,�•� . Cy
* ' *within the term of this lease oc'eny extension_4thereof,
sredevelop the immediate ,area on which •aid prremieee'is
situated#'or the .immediate adJacent surrounding area..
' thereto, . to. the extent that one or more new eating;
facilities are constructed and situated either on'said>
• £ V ANY A ye
4 mmediete area or. adjacent thereto, and, in such event,
LESSEE can demonatrate the! such' hat or will}ca�usse him, 'r
r to be detrimentally affected thereby, then,'.infRue
h
ti
F'event, LESSEB shall have the right to'iequest that the
YV
torms; eonditionsi-and provisions of�.this lease beR'
renegotietedV. -iln that event end upon such request by
LESSEE, LESSOR will respond and act reasonablyand in
fv� J jiy�4 v, _
good faith !n the renegotiation -of this lease y
z n:°
(k) ,;INSURANCE HAZARDS o-.y
LESSEE shall.not commit or permit the commission of;any
> acts on'said u premises,nor se of permit the .'use Wsiid
premises -in any manner that will increase the existing
rates for or.cause the cancell6tion of 'an lire,,��
liability, or.other insurance policy insuring said
premises or the improvements on said premises 'tLESS66:'
shall, at his own cost and expense, comply with any,.and
all. requirements of LESSOR'S insurenre:carriecsk
necessary for the continued maintenance at reasonable,
rates of fire and liability insurance policies on esid�"'
premisea and the improvements on said premises "W 0
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e1 t
^ - '�� x •^owurt
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of compete nt.Jurisdiction to be either.invalid,
r or unenforceable, the provisio! this-
: ..
UF
Tease shall remain in full im �ll force and,e!lecL unpaired
h i ri by the holding': o;long.ae the•reasonable ezpectatione
ot.the parties hereto,'are ;nof'."i 'materiellympaired.
,(p) SOLE AND ONLY AGREEMENT'
s� { {`�Thie instrument conetitutee,the sole and+onlytegreement
between LESSOR and LESSEE respecting said premises, tfia
leasing of said.premiees to LESSBE,ror the lease �tt'rm
wherein specified, and correctly seta' Earth the
�f ram.✓2',, obligatlone of LESSOR enTd'YLBSSBBpayto each other'''eB. o!
ite� dote: ` Any agreements or. representations respecting '
laid premises or their leasing by:LESBOR-to LESSEE not
expressly set forth in, this instrument are.null"`and
i, ,
void. -is
TIME OP ESSENCE
7 In Time is expressly declared to be the essence o! this.
Ott
:t. lease.'
(r) S2N3ESSION ROOF �}
Tenant is required to,maintain the•conceseion roaf
including all �naterieU and`repairs-,.to;LE880R'S
ait#•�xr
satisfaction sty
(8) GOODS OR SERVICES
•6 In the event the Mayer' Corporation requests thatx
``• •., concessionaire provide .goods and/or,iservI con tho' cost
OR
ez
J ram.
4
the Mayer Corporation.on &.*cost-pIus"-bas1s'.' ,
4 } r. y•
29
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i f+e t � :� +b• S � , .mot .� ,
:`�'�'1t.r ►a���;tkq.]' : ,f � M ;ti: a r{ �xt; s '"' ;,ii ` • � t \ x �'•�'•• . '` .., y ^ ] . � +' :,f
67>�Le� } ��ti tiu'".Li�B�- r `tea."h►- i • - '+ y JA r. s a r
_
Z.
vent the LESSOR requej
wor
XJ
X.
or its nominee..,
INGI READ THE FOLLOWING PARA
-pro Go area,
Government Code.$ 7260 at. seq. provides foijelocation benerLts for --
:'displaced pe isons. However!
entitled- to relocation bene fits b the 'feet 't.h'at-,041.
h . eve hereto - fore been acquired and are being hold I by . L SsiO
premises
LESSEE HEREBY ACKNOWLEDGES
VAILARTN AND EXPRESSLY WAIVES ANY CLAIM TO RELOCATION BENEFITS
13.
PURSUANT TO -C-ZV;& CODE 135
-IN WITNESS WHEREOF,the parties -hereto have a - xecuted this
agreement -on the -ek day.of
Huntington Beach,. California.
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REQUE,9131�'* FOR CITY COUNCYACTIO.
Data
ubmitted to, Honorable Mayor and City Council MenI
ubmlttsd by: Paul E. Cook, City Administrator
rapandby. Robert 'I'llrant, DepUty,C,Ity Administrator
ubjwtOne Year Lease rxienslont "ZACK*IS TOO", eac
:, :`A�:
C lit11 WoRn5 M-7
onsistent with Coundl Polky?%,. Yet Now Policy or Ex'
CTT
Y.
Statement of Issue, Recommendation, AnI Funding Sourco, Alternative Actions. Atft�taKcfimI
,Statement of Issues 'Council requested staff to prepare r.� . ensi;S- I the beach
....conceision agreementso mended Actlont Approve the attached agreement `extending ;the` tubleet hV
lease to
A elysbt The exhtlnR beech conce�sloneiree have operated tAe batch coneesalons, tnderileasel.
with the Clty. for many yeers..Most of the current leases expired uilry 1989 has
Indicated a -0eslre .to solicit proposals prior to comideretlon•. of :mult�-year,6agreemerI
Therefore, a one year extension of the existing agreemenp. will allow,City thetime to sollcitVir-.
proposals.
Alterro Ire Action'
enT t leases for a length of time other than one year'.
2..: - Solicit proposals prIoI to lease renewal
chmeritt Lease agreement
k.
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