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CITY OF HUNTINGTON BEACH
2000 MAIN STREET
July 14, 1999
A -Creative Property Management
438 Main Street, Suite C
Huntington Beach, CA 92648
MEAL ESTATE SERVICES
Re: Lease RenewaVExtension — 438 Main Street
Dear Norman & Sharon Harboldt:
CALIFORNIA 92648
The Economic Development Agency instructed me on Juiy 12, 1999 to inform you that,
in conformance with your lease agreement with the Agency and your letter of intent dated
May 5, I 999; you are approved as Lessee of the above referenced property for the
additional three (3) years option at $1,600.00 per month.
The term of this extension is June 7, 1999 through June 6, 2002; this is the last extension
under the current lease agreement with the Agency.
LESSEE may initiate negotiations for a new lease by giving LESSOR written notice of
' LESSEE'S desire to do so, at least six (6) months prior to expiration of the term specified
above.
If you have any questions, please call Michael L. Heineke at (714) 536-5544.
Respectfully,
waz-4 L - •
Michael L. Heineke
Real Property Agent
cc: David Biggs, Director
Stephen Kohler, Project Manager
DRUG USE
IS
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�, CITY OF HUNTINGTON , BEACH
2000 MAIN STREET CALIFORNIA 92648
REAL ESTATE SERVICES
September 26, 1996
A -Creative Property
438 Main Street, Suite C
Huntington Beach, California 92648
Reference: Lease RenewalXxtension for 3 years - 438 Main St.
Dear Norman & Sharon Harboldt
The Economic Development Agency instructed us on September 20, 1996 to inform you that, in
conformance with your lease agreement with the Agency and your letter of intent to us dated
January 5, 1996, you are approved as Lessie of the above referenced property for the additional 3
years option at $1,600.00 per month. The term of this extension is June 7, 1996 through June 6,
1999.
If you have any questions, please calf Paul Larldn at 536-5445..
Respectfully,
t
DAN NL BRENNAN
Director Real Estate Services
cc: David Biggs, Director
Stephen Kohler; Project Manager
IW it P
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IN
LEASE AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF
I THE CITY OF HUNTINGTON BEACH AND
NORMAN & SHARON HARBOLDT, JR.,
dba A -CREATIVE PROPERTY MANAGEMENT
FOR THE PREMISES AT 438 MAIN IN THE CITY OF HUNTINGTON BEACH
The REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH,
hereinafter referred -to as "LESSOR", hereby leases to NORMAN &
SHARON HARBOLDT, JR., dba A -CREATIVE PROPERTY MANAGEMENT, a
general partnership, hereinafter referred to as "LESSEE", those
certain premises, herein called "premises," in the County of
Orange, State of California, described more particularly in
Exhibit "A", attached hereto and incorporated herein by this
reference, upon the following terns and conditions:
ARTICLE 1. TERM OF LEASE
Section 1.01. OriginalTerm. This lease shall be for a
term of three (3) year(s) commencing at 12:01 a.m.
on June 7, 1993 and ending at 12 : 01 a.m.
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on June 6 1996 unless sooner terminated as herein
provided. Should LESSEE fully and faithfully perform all the
terms and conditions of this lease for the full term specified
in this Section, LESSEE may extend this lease with the written
consent of LESSOR for two further successive terms of three (3)
years, each commencing on expiration of the full term specified
above, by giving LESSOR written notice of LESSEE'S desire to do
so at least six (6) months prior to expiration of the term
specified above or any extension thereof.
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LESSOR may, however, upon six (6) months notice in writing
to LESSEE, suspend or revoke this lease agreement without
liability to the City when public necessity so requires, or to
suspend operation immediately hereunder temporarily in the event
of public emergency, as may be reasonably determined by the City
Administrator.
Such suspension will terminate when the public necessity no
longer exists.
Section 1.02. Hold Over. Should LESSEE hold over and
continue in possession of said premises after expiration of the
term of this lease or any extension thereof, LESSEE'S continued
occupancy of said premises shall be considered a month -to -month
tenancy subject to all the terms and conditions of this lease.
Section 1.03. Term Reimbursement. It is agreed between
LESSOR and LESSEE that the Rehabilitation costs of $17,624.00
identified in Article 5, Section 5.01, paragraph 3 of this lease
are to be AMORTIZED over the term of this three (3) year lease
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as follows:
$ 5,874.66 Applied to year ONE
$ 5,874.67 Applied to year TWO
S 5.874.67 Applied to year THREE
$17,624.00 Total Amount to AMORTIZE
In the event LESSOR cancels prior to the entire three (3)
year term of this lease, LESSOR agrees to reimburse LESSEE for
any unamortized portion of the above mentioned Rehabilitation
costs.
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IN
ARTICLE 2. RENT
Section 2.01. gQntal. LESSEE agrees to pay to LESSOR as
rent for the use and occupancy of said premises the sum as
follows, due each month on or before the first day of each month
hereof:
Month Monthly Rental
01-06 0
07-12 $ 500.00
13-24 $1,200.00
25-36 $1,600.00
Rehabilitation Period -
rent free
Any subsequent period beyond the 3rd year to be at $1,600
per month. The rent specified in this section shall be paid by
LESSEE to LESSOR at 2000 Main Street, Huntington Beach,
California 92648, or at such other place or places as LESSOR may
from time to time designate by written notice delivered to
LESSEE. A late charge equal to the prime commercial interest
rate established by the Bank of America shall be added on the
loth day after any payment hereunder is due, but unpaid.
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ARTICLE 3. USE OF PREMISES
Section 3.01. Permitted Use. The premises are let for the
purpose of operation of a Property Management/Maintenance and
Real Estate Investment business and other such uses as may from
time to time be approved in writing by LESSOR. LESSOR reserves
the right to prohibit the sale or rental of any item or article
which is objectionable on the basis of public welfare or beyond
the scope of the merchandise necessary for proper service to the
public.
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1) Tenant shall have the right to sublet any part of the
building tenant does not occupy, provided, however,
that the sublease is approved by the LESSOR. LESSOR
shall approve or deny the SUBLESSOR within seven (7)
business days from the date of LESSOR'S submittal of
the proposed sublease agreement to LESSOR. Failure to
respond within seven (7) working days shall be deemed
approval.
2) Tenant shall have the right to alter the interior walls
of said building, at tenants sole expense, should such
alterations be necessary, subject to the provisions of
§ 5.02 herein.
Section 3.02. ZgblCasinq or AssigningBreach. LESSEE
shall not encumber, assign, or otherwise transfer this lease,
any right or interest in this lease, or any right or interest in
said premises or any of the improvements that may now or
hereafter be constructed or installed on said premises without
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the express written consent of the EXECUTIVE DIRECTOR OF THE
REDEVELOPMENT AGENCY (-the DIRECTOR") first had and obtained.
Neither shall LESSEE sublet said premises or any part thereof or
allow any other person, other than LESSEE'S agents, servants,
and employees, to occupy said premises or any part thereof
without the prior written consent of the DIRECTOR. A consent by
the DIRECTOR to one assignment, one subletting, or one
occupation of said premises by another person shall not be
deemed to be a consent to any subsequent assignment, subletting,
or occupation of said premises by another person. Any
encumbrance, assignment, transfer, or subletting without the
05/04/93:s - 4 -
prior written consent of the DIRECTOR, whether it be voluntary
or involuntary, by operation of law or otherwise, is void and
shall, at the option of the DIRECTOR, terminate this lease. The
consent of the DIRECTOR to any encumbrance, assignment including
occupation or transfer hereof of LESSEE'S interest in this lease
or the subletting by LESSEE of said premises or parts of said
premises shall not be unreasonably withheld; however, the
DIRECTOR shall have the right of first refusal in connection
with any assignment, sale, sublease or transfer hereof and
agrees to exercise or refuse such right in writing within thirty
(30) days of notice by LESSEE. Such right shall not apply,
however, to assignments, transfers, or sublettings to immediate
family members of LESSEE, a family trust, or to any corporate
entity of which LESSEE, or any of LESSEE'S immediate family, are
sole stockholders.
ARTICLE 4. TAXES AND UTILITIES
Section 4.01.Payment-ofi LESSEE shall
pay, and hold LESSOR and the property of LESSOR free and
harmless from, all charges for the furnishing of gas, water,
electricity, telephone services, and other public utilities to
said premises during the term of this lease or any extension
thereof and for the removal of garbage and rubbish from said
premises during the term of this lease or any extensions thereof.
Section 4.02. Property Taxes. LESSEE shall pay before they
become delinquent all taxes, assessments, or other charges
levied or imposed by any governmental entity on the furniture,
trade fixtures, appliances, and other personal property placed
by LESSEE in, on, or about said premises including, without
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limiting the generality of the other terms used in this section,
any shelves, counters, vaults, vault doors, wall safes,
partitions, fixtures, machinery, plant equipment, office
equipment, television or radio antennas, or communication
equipment brought on said premises by LESSEE.
All real property taxes or possessory interest taxes and
assessments levied or assessed against said premises by any
governmental entity, shall be paid, before they become
delinquent by LESSEE.
ARTICLE 5. MAINTENANCE, ALTERATIONS AND REPAIRS
Section 5.01. Maintenance by Lessor. LESSOR shall maintain
in good condition and repair the exterior roof, exterior walls,
structural supports, and the foundation of said premises
including heating/air conditioning and plumbing.
Except as otherwise expressly provided in Section 5.02 of
this lease, LESSEE shall at his own cost and expense keep and
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maintain all portions of said premises as well as all
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 wear and tear excepted.
A -Creative -Property Maintenance will rehabilitate the entire
building in the amount of $17,624 within a six (6) week period
of occupancy. A copy of the rehabilitation agreement is
attached hereto as Exhibit "B" and incorporated herein by this
reference.
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Section 5.02. Alterations_ and Liens,, LESSEE shall not make
or permit any other person to make any alterations to said
premises or to any improvement thereon or facility appurtenant
hereto without the written consent of LESSOR first had and
obtained. LESSEE shall keep the premises free and clear from
any and all liens, claims, and demands for work performed,
materials furnished, or operations conducted on said premises at
the instance or request of LESSEE. Furthermore, any and all
alterations, additions, improvements, and fixtures, except
furniture and trade fixtures, made or placed in or on said
premises by LESSEE or any other person shall on expiration or
sooner termination of this lease become the property of LESSOR
and remain on said premises; provided, however, that LESSOR
shall have the option on expiration or sooner termination of
this lease of requiring LESSEE, at LESSEE'S sole cost and
expense, to remove any or all such alterations, additions,
improvements or fixtures from said premises.
f
Section 5.03. Inspection by Lessor. LESSEE shall permit
LESSOR or LESSOR'S agents, representatives, or employees to
enter said premises at all reasonable times, with notice, for
the purpose of inspecting said 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 LESSOR'S interest in said premises under this lease or
to perform LESSOR'S duties under this lease.
Section 5.04. Surrender of PrCm_ises. On expiration or
sooner termination of this lease, or any extensions or renewals
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of this lease, LESSEE shall promptly surrender and deliver said
premises to LESSOR in as good condition as they are now at the
date of this lease, reasonable wear and tear and repairs herein
required to be made by LESSOR excepted.
ARTICLE 6. INDEMNITY AND EXCULPATION INSURANCE
Section 6.01 Hold -Harmless Clause. LESSEE agrees to
indemnify, defend and hold City and Agency and the property of
City and Agency, including the premises free and harmless from
any and all claims, liability, loss, damage, or expenses
resulting from any tenant's occupation and use of the premises
or LESSEE's use or occupation of the premises, specifically
including, without limitation, any claim, liability, loss, or
damage arising by reason of:
(a) The death or injury of any person or persons, including
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tenants or any person who is an employee or agent of
any tenant, or by reason of the damage to or
destruction of any property, including property owned
by a tenant or LESSEE or any person who is an employee
or agent of LESSEE or tenant, and caused or allegedly
caused by either the condition of the premises, or some
act or omission of LESSEE or of as agent, contractor,
employee, servant, sublessee, or concessionaire of
LESSEE on the Premises;
(b) Any work performed on the premises or materials
furnished to the premises at the instance or request of
LESSEE or any agent or employee of LESSEE, with the
exception of maintenance performed by City and Agency.
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(c) LESSEE's failure to perform any provision of this Lease
or to comply with any requirement of law or any
requirement imposed on City and Agency or the leased
premises by any duly authorized governmental agency or
political subdivision.
Section 6.03. Comprehensive Coverage, LESSEE shall, at his
own cost and expense, thirty (30) days prior to possession,
secure and then maintain during the entire term of this Lease
and any renewals or extensions of such term, a broad form
comprehensive coverage policy of public liability insurance
issued by an insurance company acceptable to city and insuring
City and Agency, its officers, employees and agents, against
loss or liability caused by or connected with LESSEE's
occupation and use of the premises under this Lease in amounts
not less than: combined single limit bodily injury and property
damage, including products/ completed operations liability and
blanket contractual liability, of $1,000,000 per occurrence. if
I
coverage -is provided under a form which includes a designated
general aggregate limit, the aggregate limit must be no less
than $1,000,000. The policy shall name City and Agency, its
officers, and employees as additional insureds, and shall
specifically provide that any other insurance coverage which may
be applicable to the premises shall be deemed excess coverage
and the LESSEE's insurance shall be primary.
Section 6.04 , Inc-rease in AMguntwof-Publ c Liability and
PropertyDamagQ Insurance. Not more frequently than every three
years, if, in the opinion of the Risk Manager or consultant
retained by City, the amount of public liability and property
05/04/93 : s -- 9 --
damage insurance coverage at that time is not adequate, LESSEE
shall increase the insurance coverage as reasonably required by
City's Risk Manager.
Section 6.05. Eire Insurance Qn BUilding gna Qthgr
ImRroveMentZ. LESSEE, at its own cost, shall maintain on the
buildings and other improvements that are or become a part of
the Premises a policy of standard fire and extended coverage
insurance, with vandalism and malicious mischief endorsements,
to the extent of at least full replacement value, in a form
acceptable to the City Attorney.
The insurance policy shall be issued in the names of Agency
and LESSEE, as their interest appear. The insurance policy
shall provide that any proceeds shall be made payable to City
and LESSEE jointly.
Section 6.06. Determina-tion of__ReplaCpment Value. The
"full replacement value" of the buildings and other improvements
to be insured shall be determined by the company issuing the
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insurance policy at the time the policy is initially obtained.
Not more frequently than once each year, either Party shall have
the right to notify the other Party that it elects to have the
replacement value redetermined by an insurance company. The
redetermination shall be made promptly and in accordance with
the rules and practices of the Board of Fire Underwriters, or a
like board recognized and generally accepted by,the insurance
company, and each Party shall be promptly notified of the
results by the company. The insurance policy shall be adjusted
according to the redetermination.
05/04/43:s - 10 -
Section 6.07. Loss of Rent Insurance. LESSEE at its cost
shall maintain loss of rent insurance insuring that the minimum
rent will be paid to LESSOR for a period up to six months if the
premises are destroyed or rendered inaccessible by a risk
insured against by a policy of standard fire and extended
coverage insurance with vandalism and malicious mischief
endorsements.
Section 6.08. Jlorkeg52 Comnengption. LESSEE shall supply
Workers' Compensation Certificate with statutory limits and
employers liability in the amounts of
$500,000/$1,000,000/500,000. LESSEE shall comply with all of
the provisions of the Workers' Compensation Insurance and Safety
Acts of the State of California, the applicable provisions of
Divisions 4 and 5 of the California Labor Code and all
amendments thereto; and all similar state or federal acts or
laws applicable; and shall indemnify, defend and hold harmless
City and Agency from and against all claims, demands, payments,
I
suits, actions, proceedings and judgments of every nature and
description, including attorney's fees and costs, presented,
brought or recovered against City and Agency, for or on account
of any liability under any of the acts which may be incurred by
reason of any activity performed by LESSEE under this agreement.
Section 6.09. Waiver of Subrogation. The parties release
each other, and their respective authorized representatives,
from any claims for damage to any person or to the premises and
to the fixtures, personal property, and alterations of either in
or on the Premises that are caused by or result from risks
insured against under any insurance policies carried by the
05/04/93:s - 11 -
parties and in force at the time of any such damage.
Each party shall cause each insurance policy obtained by it
to provide that the insurance company waives all rights of
recovery by way of subrogation against either party in
connection with any damage covered by any policy. Neither party
shall be liable to the other for any damage caused by fire or
any of the risks insured against under any insurance policy
required by this Lease. If any insurance policy cannot be
obtained with a waiver of subrogation, or is obtainable only by
the payment of an additional premium charge above that charged
by insurance companies issuing policies without waiver of
subrogation, the party undertaking to obtain the insurance shall
notify the other party of this fact. The other party shall have
a period of 20 days after receiving the notice either to place
the insurance with a company that is reasonably satisfactory to
the other Party and that will carry the insurance with a waiver
of subrogation, or to agree to pay the additional premium if
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such a policy is obtainable at additional cost. If the
insurance cannot be obtained or the party in whose favor a
waiver or subrogation is desired refused to pay the additional
premium charged, the other party is relieved of the obligation
to obtain a waiver of subrogation rights with respect to the
particular insurance involved.
Section 6.10. Q.tber Insurance Matters. All the insurance
required under this Lease shall:
(1) Be issued by insurance companies authorized to do
business in the State of California, acceptable to
Agency;
05/04/93:s — 12 —
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(2) Be issued as a primary policy;
(3) Be noncontributing with any insurance that may be
carried by Agency or City;
(4) Contain an endorsement requiring 30 days' written
notice from the insurance company to both parties
before cancellation or change in the coverage,
scope, or amount of the policy.
Each policy, or a certificate of the policy, together with
evidence of payment of premiums, shall be deposited with Agency
before LESSEE's entry on the premises, and on renewal of the
policy not less than 30 days before expiration of the term of
the policy. At the election of Agency upon the expiration of
the term, Agency shall reimburse LESSEE pro rata for all prepaid
premiums on insurance required to be maintained by LESSEE, and
LESSEE shall assign all LESSEE's right, title, and interest in
that insurance to Agency; in the event of earlier termination of
this Lease Agency shall, at its election, have the right to
1
require LESSEE to make such assignment to Agency upon Agency's
pro rata reimbursement to LESSEE for prepaid premiums. The
provisions of the preceding sentence shall be applicable only to
the extent that LESSEE's insurance carrier permits assignment to
be made to Agency. LESSEE shall use its best efforts to secure
the prior consent of the carriers to such assignment whenever
LESSEE obtains, renews or replaces any of the insurance required
by this section.
Either Party may effect for its own account any insurance
not required under this Lease.
05/04/93 : s -- 13 -
ARTICLE 7. SIGNS AND TRADE FIXTURES
Section 7.01. Installation and Rgmoval'x .
LESSEE shall have the right at any time and from time to time
during the term of this lease and any renewal or extension of
such term, at LESSEE"S sole cost and expense, to install and
affix in, to, or on said premises such items, herein called
"trade fixture", for use in LESSEE'S trade or business as LESSEE
may, in his sole discretion, deem advisable subject to city
ordinances and permits and S 7.03 below. Any and all such trade
fixtures that can be removed without structural damage to said
premises or any building or improvements on said premises shall,
subject to Section 7.02 of this lease, remain the property of
the LESSEE and may be removed by LESSEE at any time prior to the
expiration or sooner termination of this lease.
Section 7.02. Unremovgd Trade Fixtures. Any trade fixtures
described in this Article that are not removed from said
premises by LESSEE within thirty (30) days after the expiration
I
or sooner termination, regardless of cause, of this lease shall
be deemed abandoned by LESSEE and shall automatically become the
property of LESSOR as owner of the real property to which they
are affixed and not simply because of the lien described in
Section 7.02 of this lease.
Section 7.03. Signs. LESSEE ;hall not place and maintain,
nor permit any other person to place or maintain, on or in any
exterior door, wall, or window of said premises any sign,
awning, canopy, marquee, or other advertising without the
express written consent and approval of LESSOR. Furthermore,
LESSEE shall not place any decoration, lettering, or advertising
05/04/93:s - 14 -
matter on the glass of any interior or exterior shop window of
said premises without the written approval and consent of
LESSOR. Should LESSOR consent to any such sign, awning, canopy,
marquee, decoration, or advertising matter, LESSEE shall
maintain it at all times during this lease in good appearance
and repair. On expiration or sooner termination of this lease,
any of the items mentioned in this section not removed from said
premises by LESSEE on such expiration or termination of this
lease may, without damage or liability, be destroyed by LESSOR.
This lease is expressly contingent upon approval of all signs by
both LESSOR and LESSEE and the City of Huntington Beach.
ARTICLE B.
Section 8.01. Partial-Pestruction. Should premises or the
building on premises be partially destroyed by any cause not the
fault of LESSEE or any person in or about said premises with the
consent, express or implied, of LESSEE, this lease shall
continue in full force and effect and LESSOR, at LESSOR'S own
cost and expense, shall promptly commence and diligently
continue and complete the work of repairing and restoring said
premises to their prior condition providing such work can be
accomplished under all applicable governmental laws and
regulations within one hundred eighty (180) working days.
Section 8.02. 2:otpl Destruction. Should said premises or
the building on said premises be so far destroyed by any cause
not the fault of LESSEE or any person in or about said premises
with the consent, express or implied, of LESSEE that they cannot
be repaired or restored to their former condition within
05/04/93:s - 15 -
one -hundred eighty (180) working days, LESSOR may, at LESSOR'S
option:
(a) Continue this lease in full force and effect by
repairing and restoring, at LESSOR'S own cost and
expense, said premises to their former condition;
or
(b) Terminate this lease by giving LESSEE written notice of
such'termination.
Section 8.03. XDspranae Proceeds. Any insurance proceeds
received by LESSOR because of the total or partial destruction
of said premises or the building on said premises shall be the
sole property of LESSOR, free from any claims of LESSEE, except
any and all insurance proceeds, including business interruption
insurance which would ordinarily flow to the benefit of LESSEE.
Section 8.04. Abatement of Rent. Should LESSOR elect under
Section 8.02 of this lease or be required under Section 8.01 of
this lease to repair and restore said premises to their former
condition following partial or full destruction of said premises
or the building on said premises:
(a) LESSOR shall have full right to enter said premises and
take possession of so much of said premises, including
the whole of said premises, as may be reasonably
necessary to enable LESSOR promptly and efficiently to
carry out the work of repair and restoration; and
(b) The percentage rent described in Section 2.01 of this
lease shall be not abated for the time LESSEE is
prevented from using the whole of said premises.
05/04/93:s - 16 -
Section 8.05. Total Condemnation. Should, during the term
of this lease or any renewal or extension thereof, title and
possession of all of said premises be taken under the power of
eminent domain by any public or quasi -public agency or entity,
this lease shall terminate as of 12:01 a.m., of the date actual
physical possession of said premises is taken by the agency or
entity exercising the power of eminent domain and both LESSOR
and LESSEE shall thereafter be released from all obligations,
except those specified in Section 8.08 of this lease, under this
lease.
Should, during the term of this lease or any renewal or
extension thereof, title and possession of only a portion of
said premises be taken under the power of eminent domain by any
public or quasi -public agency or entity, LESSEE may, at LESSEE'S
option, terminate this lease if more than five percent (5%) of
the ground area (or floor space) or more than 10 percent (10%)
in value of said premises if taken under the power of eminent.
domain. LESSEE shall exercise his option by giving written
notice to LESSOR within 30 days after actual physical possession
of the portion subject to the eminent domain is taken by the
agency or entity exercising the power. This lease shall
terminate as of 12:01 a.m. of the date the notice if deemed
given to LESSOR.
Section 8.07. Paltial CondemnationWithgMt-Tgrmination.
Should LESSEE fail to exercise the option described in Section
8.06 of this lease or should the portion of said premises taken
under the power of eminent domain be insufficient to give rise
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to the option described in Section 8.06 of this lease, then, in
the event:
(a) This lease shall terminate as to the portion of said
premises taken by eminent domain as of 12:01 a.m. of
the day, herein called the "date of taking", actual
physical possession of that portion of said premises is
taken by the agency or entity exercising the power of
eminent domain.
(b) LESSOR, at LESSOR'S own cost and expense, will
remodel/reconstruct the building remaining on the
portion of said premises not taken by eminent domain
into a single efficient architectural unit as soon
after the date of taking, or before, as can be
reasonably done; provided, however, that the percentage
rent specified in this lease shall be abated or reduced
during such remodeling and reconstruction.
S?ction 8.08. w Should,..during the term
of this lease or any renewal or extension thereof, title and
possession of all or any portion of said premises be taken under
the power of eminent domain by any public or quasi -public agency
or entity, the portion of the compensation or damages for the
taking awarded to each of the parties to this lease, LESSOR and
LESSEE, shall belong to and be the sole property of the party
LESSOR or LESSEE, to whom it is awarded. LESSEE shall be
entitled to that portion of the compensation or damages awarded
for the eminent domain taking that represents (1) the reasonable
value of LESSEE'S rights under this lease for the unexpired term
of this lease and (2) the cost or loss sustained by LESSEE
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because of the removal of LESSEE'S merchandise, trade fixtures,
equipment, and furnishings from the portion of said premises
taken by eminent domain, and (3) whatever other compensation and
or damages which may be usual and customary to LESSEES under the
circumstances.
Section 8.09. &rb-itrp-tIgn gf rondemnation Award, Should
separate awards not be made to LESSOR and LESSEE for the taking
by eminent domain of all or any portion of said premises, and
should LESSOR and LESSEE be unable to agree on the manner the
total award is to be divided between them pursuant to Section
8.08 of this lease, the proper division of the award between
LESSOR and LESSEE shall be settled by arbitration in accordance
with the rules promulgated by the American Arbitration
Association. Each party shall appoint an arbitrator and the two
arbitrators so appointed shall, within a month after both have
been appointed, select a third arbitrator. The decision of any
two of the three arbitrators in writing shall be binding on both
LESSOR and LESSEE. Should no two arbitrators be able to agree
within one month after appointment of the third arbitrator, the
report of the arbitrator most favorable to LESSOR and the report
of the arbitrator most favorable to LESSEE shall both be
disregarded and the report of the remaining arbitrator shall be
binding on both LESSOR and LESSEE. Should either LESSOR or
LESSEE fail to appoint an arbitrator within fifteen (15) days
after receiving written notice from the other to so do, the
arbitrator selected by the other party shall act for both and
his decision in writing shall be binding on both LESSOR and
LESSEE.
05/04/93:s - 19 -
Section 8.10. Relocation and Assistance. In the event this
lease is terminated for any reason by LESSOR, LESSEE shall not
be entitled to any relocation rights or benefits and expressly
waives such benefits and rights under City, State or Federal
Relocation Assistance Plans.
ARTICLE 9. DEFAULT, ASSIGNMENT, AND
TERMINATION OF MASTER LEASE
Section 9.01. Abandonment by� LESSEE. Abandonment is
defined as should LESSEE breach this lease and abandon said
premises prior to the natural expiration of the term of this
lease, LESSOR may:
(a) Continue this lease in effect by not terminating
LESSEE'S right to possession of said premises, in which
event LESSOR shall be entitled to enforce all his right
and remedies under this lease, including the right to
recover the rent specified in this lease as it becomes
due under this lease, or
(b) Terminate this lease and recover from LESSEE:
(1) The worth at the time of award of the unpaid rent
which had been earned at the time of termination
of the lease;
(2) The worth at the time of award of the amount by
which the unpaid rent which would have been earned
after termination of the lease until the time of
award exceeds the amount of rental loss that
LESSEE proves could have been reasonably avoided;
05/04/93:s - 20 -
(3) The worth at the time of award of the amount by
which the unpaid rent for the balance of the term
of this lease after the time of award exceeds the
amount of rental loss that LESSEE proves could be
reasonably avoided; and
(4) Any other amount necessary to compensate LESSOR
for all detriment proximately caused by LESSEE'S
failure to perform his obligations under this
lease.
Section 9.03. Default by LESSEE. Should LESSEE default in
the performance of any of the covenants, conditions, or
agreements contained in this lease, LESSEE shall have breached
the lease and LESSOR may, in addition to the remedy specified in
the subparagraph (b) of Section 9.02 of this lease, re-enter and
regain possession of said premises in the manner provided by the
laws of unlawful detainer of the State of California then in
effect .
Section 9.04. jnsojvCnCM_gf LUSE The insolvency of
LESSEE as evidenced by a receiver being appointed to take
possession of all or substantially all of the.property of
LESSEE, or the making of a general assignment for the benefit of
creditors by LESSEE, or filing a petition in bankruptcy shall
terminate this lease and entitle LESSOR to re-enter and regain
possession of said premises.
Section 9.05. Cumulative Remedied. The remedies given to
LESSOR in this Article 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.
05/04/93:s - 21 -
Section 9.06. Waiver of_areach. The waiver by LESSOR of
any breach by LESSEE of any of the provisions of this lease
shall not constitute a continuing waiver or a waiver of any
subsequent breach by LESSEE either of the same or another
provision of this lease.
ARTICLE 10. MISCELLANEOUS
Section 10.01. Forcg Maieurg - Unavoidable Delays. 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, labor troubles,
inability to secure materials, laws or regulations, or any other
cause outside of the control of either party except financial
inability not the fault of the party required to perform the
act, the time for performance of the act will be extended for a
period equivalent to the period of delay and performance of the
act dyring the period of delay will be excused; provided,
however, that nothing contained in this section shall excuse the
prompt.payment of rent by LESSEE as required by this lease or
the performance of any act rendered difficult solely because of
the financial condition of the party, LESSOR or LESSEE, required
to perform the act.
Section 10.02. Cale of Premises Maintenance DeRosit.
(a) LESSEE shall paint, stain or seal the premises' stucco,
trim, etc., a minimum of every two years, unless it is
determined by LESSOR in its sole discretion, that such
work shall be done once every year. All exterior metal
05/04/93:s
- 22 -
u
surfaces shall be painted no less than once each year
except the roof.
(b) Any and all graffiti shall be removed by LESSEE at it's
own expense from the leased premises within forty-eight
(48) hours of notice thereof.
(c) LESSEE shall not obstruct, cause or permit any
obstruction surrounding the premises or any part
thereof in any manner whatsoever.
(d) LESSEE shall comply with all written notice served by
t
LESSOR with regard to the care and maintenance of the
premises. Any written notice hereunder shall specify
the work to be done, the estimated cost thereof, and
the period of titre deemed to be reasonably necessary
for completion of such work. Should LESSEE fail to
comply with LESSOR'S written notice within fifteen (15)
days, or within a time deemed reasonably necessary of
the time specified therein, LESSEE shall pay over to
LESSOR the estimated cost of such work as set forth in
the notice. Upon receipt of such sum, LESSOR shall
then proceed to cause the required work to be performed.
(e) Notice. Any written notice, given under the terms of
this agreement, shall be either delivered personally or
mailed, certified mail, postage prepaid, addressed to
the party concerned, as follows:
City of Huntington Beach: LESSEE:
Mr. Robert Franz
Deputy City Administrator
City of Huntington Beach
2000 Main Street
P.O. Box 190
Huntington Beach, CA 92648
A -Creative Property Management
Norm and Sharon Harboldt, Jr.
43B Main Street
Huntington Beach, CA 92648
05/04/93:s - 23 -
(f) Insurance Hazards. LESSEE shall not commit or permit the
commission of any acts on said premises nor use or permit
the use of said premises in any manner that will increase
the existing rates for or cause the cancellation of any
fire, liability, or other insurance policy insuring said
premises or the improvements on said premises. LESSEE
shall, at his own cost and expense, comply with any and
all requirements of LESSORS insurance carriers necessary
for the continued maintenance at reasonable rates of fire
and liability insurance policies on said premises and the
improvements on said premises.
(g) Hastg oz_Nui�ance. LESSEE shall not commit or permit the
commission by others of any waste on said premises;
LESSEE shall not maintain, commit, or permit the
maintenance or commission of any nuisance as defined in
Section 3479 of the California Civil Code on said
t premises; and LESSEE shall not use or permit the use of
said premises for any unlawful purpose.
(h) Compliance with L . LESSEE shall at LESSEE'S own cost
and expense•comply with all statutes, ordinances,
regulations, and requirements of all governmental
entities, federal, state, county and municipal, relating
to LESSEE'S use and occupancy of said premises whether
such statutes, ordinances, regulations, and requirements
be now in force or hereinafter enacted. The judgment of
any court of competent jurisdiction, or the admission by
LESSEE in a proceeding brought against LESSEE by any
government entity, that LESSEE has violated any such
05/04/93:s
- 24 -
statute, ordinance, regulation, or requirement shall be
conclusive as between LESSOR and LESSEE and shall be
ground for termination of this lease by LESSOR.
(i) Bind-inc3�on_Heirs and-SucCeSgors. This lease shall be
binding on and shall inure to the benefit of the heirs,
executors, administrators, successors, and assigns of the
parties hereto.
(j) Part l-I Invalidity. Should any provision of this lease
be held by a court of competent jurisdiction to be either
invalid, void, or unenforceable, the remaining provisions
of this lease shall remain in full force and effect
unimpaired by the holding, so long as the reasonable
expectations of the parties hereto are not materially
impaired.
(k) SoIC and Only Agreement. This instrument constitutes the
t
sole and only agreement between LESSOR and LESSEE
respecting said premises, the leasing of said premises to
LESSEE, or the lease term herein specified, and correctly
sets forth the obligations of LESSOR and LESSEE to each
other as of its date. Any agreements or representations
respecting said premises or their leasing by LESSOR to
LESSEE not expressly set forth in this instrument are
null and void.
(1) Non -Discrimination —The LESSOR, on behalf of itself and
its successors, assigns, and each successor in interest
to the Site or any part thereof, hereby covenants and
agrees:
05/04/93:s
- 25 -
k.. )
(a) Not to discriminate upon the basis of sex, marital
status, race,.color, creed, religion, national origin, or ancestry
in the sale, lease, sublease, transfer or rental, or in the use,
occupancy, tenure, or enjoyment of the Site or any improvements
thereon, or of any part thereof. Each and every deed, lease, and
contract entered into with respect to the Site shall contain or be
subject -to substantially the following nondiscrimination or
nonsegregation clauses:
(1) In deeds: "The grantee herein covenants by and
for itself, its successors and assigns, and all
persons claiming under through them, that there
shall be no discrimination against or
segregation of any person or group of persons
on account of sex, marital status, race, color,
creed, religion, national origin, or ancestry
f in the sale, lease, rental, sublease, transfer,
use occupancy, tenure, or enjoyment of the land
herein conveyed, nor shall the grantee itself
or any persons claiming under or through it,
establish or permit any such practice or -
practices of discrimination or segregation with
reference to the selection, location, number,
use or occupancy of tenants, lessees,
subtenants, sublessees, or vendees in the land
05/04/93:s - 26 -
V
herein conveyed. The foregoing covenants shall
run with the land."
(2) In leases: "The lessee herein covenants by and
for itself, its successors and assigns, and all
persons claiming under or through them, and
this lease is made and accepted upon and
subject to the following conditions:
That there shall be no discrimination against
or segregation or any person or group of
persons, on acccunt of sea, marital status,
race, color, creed, religion, national origin,
or ancestry, in the leasing, renting,
subleasing, transferring, use, occupancy,
tenure, or enjoyment of the land herein leased
f nor shall the lessee itself, or any person
claiming under or through it, establish or
permit such practice or practices of
discrimination or segregation with reference to
the selection, location, number, use or
occupancy of tenants, lessees, sublessees,
subtenants, or vendees in the land herein
leased."
05/09/93:s - 27 -
(3) In contracts: "There shall be no
discrimination against or segregation of, any
persons, or group of persons on account of sea,
marital status, race, color, creed, religion,
national origin, or ancestry in the sale,
lease, rental, sublease, transfer, use,
occupancy, tenure or enjoyment of the land, nor
shall the transferee itself or any person
claiming under or through it, establish or
permit any such practice or practices of
discrimination or segregation with references
to the 'selection, location, number, use or
occupancy of tenants, lessees, subtenants,
sublessees or vendees of the land."
I
ARTICLE 11. LESSEE'S NON -ELIGIBILITY FOR RELOCATION ASSISTANCE
The leased PREMISES is within a redevelopment project area.
Government Code Section 7260 et seq. provides for relocation
benefits for displaced persons. However, the LESSEE, if
displaced, would not be entitled to relocation benefits by virtue
of the fact that the premises have heretofore been acquired and
are being held by LESSOR expressly for redevelopment purposes. IN
05/04/93:s - 28 -
CONSIDERATION OF THIS INTERIM LEASE, LESSEE HEREBY ACKNOWLEDGES
THAT NO BENEFITS ARE AVAILABLE AND EXPRESSLY WAIVES ANY CLAIM TO
RELOCATION BENEFITS PURSUANT TO CIVIL CODE Section 3513.
In the event of Subleasing, this paragraph must be inserted in
the contract, initialed and dated by the sublessee.
Executed on August 17, 1993
Huntington Beach or Orange County, California.
LESSEE:
A -Creative Property Management,
a general partnership,
Signature f�G�
LESSOR:
Redevelopment Agency of the
City of Huntington Beach
Qj
Chairman
at
G/f1/LnJ Z. L:� 7 Z,Q j V? ATTEST:
Name (type or print)
Its : /,l.P �w.1�4z:_
Title (type or print) Agency Clerk
,% } r, f�.'���3 APPROVED AS TO FORM:
Signature
fI
Agenc�.0
y Counsel
Na e t e_or print) -9-`�3
Its: _ Ef��'r A-
Title (type or print)
REV-JIMD AND APP �,�
Executive i ector
INITIATED AND APPROVED:
Depu
S it 11.3
n*�Qw�
tr r/
ra is
beputy Cit Ad�inistrpeor
Administrative Serv' es
05/09/93:s - 29 -
Q
. 4
s
•
..46
A
tfl
i
' EHIiiBIT B •
A-CI*EATIVE REAL ESTATE & PROPERPY -MANAGEMENT
Residenriol • Commercial, • lndusrr&
r•
November 23, 1992`*
ATTENTION: Paul Larkin,.City of Huntington Beach,
Re-devopement Dept,
RE: Bid for 438 Main St., Huntington Beach, Ca.
CARPET: $5076.00
%%% Includes removing existing carpet, repair floors where needed,
install new commercial grade carpet thru-out, including stairs.
Without carpeting back room of unit A 7..44300.00
INTERIOR PAINTING: $7630.00 VERTICAL BLINDS WHERE NEEDED: $818.00
Repair ceilings, patch & fill holes in wails, do necessary repairs
to woodwork and trim, spray new acoustic on ceilings where needed.
Includes 2 coats of paint on ceilings, walls, and 2 coats of enamel
on all woodwork, including bathrooms and bath cabinets. Tile 4 bathro,
EXTERIOR: $3600.00
Remove cetainic tile on front & back, install wire and -brown coat
and apply finish stucco, install new -wood trim on front where
needed, replace pall window in front of building, paint 2 coats
of paint on all wood trim.
Sand & prime and paint wrought iron with 2 coats of paint.
LANDSCAPE: $500.00
Clean up & trim in front and add some flowering plants. Remove wood
fence on property line in back and replace with steel poles, remove
tree under stairs, and replace with low -maintenance plants, includes
All clean-itp and haul away debris.
Upon acceptance of bid, paint colors and carpet samples to be presented
for choice of colors.
Norman X. Harboldt Jr.'
A -Creative Property Maintenance
19400 BEACH BLVD. • SUITE 50 . HUNTINGTON BEACH CALIFOPNIA 92646
5.,076.00 +
7F 630.00 t
818.00 t
31600.00 t
500.00 +
.1.7.1624.00
v
(714J 964-6774-
' 1 RV�..1� IIVJVRHIr\.G G/�L,1'7MIVVG
s
- IT DIM CERTIFICATE AS TVEVIDENCE NSURANCE
THh IS NOT AN INSURANCE POLICY. 1I4AW4NLY A VERIFICATION OF INSURANCE. IT DOES N0,.N1 ANY WAY AMEND. EXTEND OR ALTER THE
COVERAGE PROVIDED BY THE POLICIES LISTED BELOW.
Named
insured . SHARON & NORMAN HARBOLDT
Address . DBA : A CREATIVE PROPERTY MGMT 9 M'cy" 4 u664+
• 19400 BEACH BLVD #5B
x HUNTINGTON BEACH, CA 92647 Agent Pa.cya•Auto WD.
alcy i . CARGO
This is to certify that policies for the above named insured are in force as follows:
polcy 0 • work Comp.
ThisInterim Certificate As To Evidence of Insurance shall expire sixty days from 12 - 01 A M•,
J UNE 15 , :_ , 19 9 U, unless cancelled prior to such date by written notice to the named insured.
f A Plence issue n Permnnenl Cprtifirntw
COVERAGE
COMBINED LIMITS OF LIABILITY
COVERED
CONOT AUTO
VERED LIABILITY
❑
®
Owned
Bodily Injury
$
,000 each person
❑
®
Hired
$
,000 each occurrence
❑
❑X
❑
❑
Non -Owned
Employer's Non -Ownership
Property Damage
$
.000 each occurrence
Contingent liability
Single Limil Liability for Coverages checked ® above
$ 1 , 000 r,,000
each occurrence
GENERAL LIABILITY
M&C - OLT
Bodily Injury
�_.�
,000 each person +•
Owners & Contractors
$
,000 each occurrence
[R
❑
Contractual *
$
,000 annual „ :;;Qoie
❑
Elevators
Products and/or
Property Damage
$
,000 each occurrence
annual oggrlgal!
Completed Operations
,000 products***
Single Limit Liability for Coverages checked ® above
$ 1, 000
000 each occurrence
APPRO
AS TO FORK:
: City Attorney $
annual agQrlgm!
.000 produm as e
❑
(
CARGO By:, De
-a+ City Attorney
��� D1 �qA
f"
$�
.000 each vehicle
$
.000 each occurrence
❑
❑
WORKERS•
COMPENSATION
; I r _
Statutory
+ Inciudes Gooas or Products Warranty, Written Lecse of Premises, Easement Agreement, Municipal Ordinance
Agreement, Sidetrack Agreement, Elevator or Escalator Maintenance Agreement only, unless accompanied b•_
s¢ecific endorsement providing additional Contractual Coverage.
w.c,.h.a a..a.P�..,, ... ..
❑ filar ❑ ..a,..e
OWNED YEAR. MAKE. TYPE OF BODY, LOAD CAPACITY • IDENTIFICATION NUMBER
AUTO-
MOBILES, LAST
IF
. DIGIT
COVERED SHOW I
Umbrella Liability $ ,000 retained limit
POLICY NUMBER $ each occurrence
$, Aggregate
If this Interim Certificate As To Evidence Of Insurance is to be cancelled prior to the expiration date, we shall
• . provide 30 days advance notice in writing to whom this certificate is issued.
FS ADDITIONAL INSURED: THE CITY OF HUNTINGTON BEACH, ITS AGENTS, OFFICERS,
Certificate issued to,
AND EMt.LOYESSy .Y ` '-.1 ...1
i Name , My + 3r� AsNase/Loon .
And • CITY OF HUNTINGTON BEACH Number
• Address . ITS AGENTS, OFFICERS, 14UP,EMPLOYEES+
2000 MAIN ST 1d C. .1 .. •
A z
HUNTINGTON BEACH, CA 92648 Countersign
j * Not Applicable in Texas_ 't� Q p� T� T N T� Aulhor ! slnloliv!
s t * In Texas�lt Q�g e ls� l� av +brs d ron ocT3r �p•o�e }co 1roctua"f onaTo�c o ated Opero+ ons. 9 214 8
%4- M1/ 1.0717151 W11M r../17MPftvmn% irlt& ¢91 11301
4f
STATE P.O. EOX 420807, SAN FRANCISCO. CA 94142-0807
COMPZNSATIO14
INSURANCI!
FUND CERTIFICATE OF WORKERS' COMPENSATION INSURANCE
JULY 16, 1993 POLICYNUMSER: 1362035 - 93
CERTIFICATE EXPIRES: 7-1 —94
r
CITY OF HUNTINGTON BEACH
REDEVELOPMENT DEPT./ATTN: PAUL LARKIN
2000 MAIN STREET
HUNTINGTON BEACH, CA 92648 JOB: ALL OPERATIONS
L
This is to certify that we have issued a valid Workers' Compensation insurance policy in a form approved by the California
Insurarce Commissioner to the employer named below for the policy period indicated_
30
This pclicy is not subject to cancellation by the Fund except uponXe;Q days' advance written notice to the employer.
30
We will alio give you Tjlr days' advance notice should this policy be cancelled prior to its normal expiration.
This ee-tificate of insurance is not an insurance policy and does not amend, extend or alter the coverage afforded by the
policies listed herein. Notwithstanding any requirement, term, or condition of any contract or other document with
respect to which this certificate of insurance may be issued or may pertain, the insurance afforded by the policies
describ!d herein is subject to all the terms, exclusions and conditions of such policies.
X. V-10"
PRESIDENT
EMPLOYER'S LIABILITY LIMIT: $3,000,000 PER OCCURRENCE.
ENDORSEVENT #2065 ENTITLED CERTIFICATE HOLDERS' NOTICE EFFECTIVE
07/16/93 IS ATTACHED TO AND FORMS A PART OF THIS POLICY.
t
A.PPRaTtEET AS. TO roR:t:
GAIL Ela OIN, City ;; ttOrray
B7 : ).•o��tY Cit;r : t'60rnr'y
EMPLOYER
r • F :+ 1 I 14� 2.i •Jv
NORMAN HARBOLDT AND SHARON HARBOLDT DBA: A
CREATIVE PROPERTY 14ANAGEMENT AND
438 MAIN STREET, SUITE C
HUNTINGTON BEACH, CA 92648
L
.k./
j, CITY OF HUNTINGTON BEACH
k� 2000 MAIN STREET CALIFORNIA 92648
OFFICE OF THE CITY CLERK
CONNIE BROCKWAY
CITY CLERK
August 17, 1993
Sharon Harboldt _
A -Creative Management
438 Main Street - "C"
Huntington Beach, CA 92648
The City Council of the City of Huntington Beach at the regular meeting
held June 7, 1993 approved a Lease Agreement between the Redevelopment
Agency of the City of Huntington Beach and Norman & Sharon Harboldt, Jr
dba A -Creative Property Management for the premises at 438 Main Street
In the City of Huntington Beach.
Enclosed is an executed copy of the agreement for your records.
Connie Brockway
City Clerk
CB:bt
Enc.
(Telephone: 71453"2Z7i
(� I )_1
REQUEST FG..,l REDEVELOPMENT�GENCY
ACTION
APPROVED 33Y CITY COUNCIL
ate une 7. 1993
CITY CLERK
STATEMENT OF I E: 438 Main Street, a commercial two story building currently vacant
was acquired as part of the Town Square Redevelopment Project. Though structurally sound
and with a new roof, the building is in need of cosmetic refurbishing. The firm of
"A -Creative", at no cost to the Agency, will refurbish this building and return it to an
income producing property for the Agency .until such time as it may be needed for a
Redevelopment Project.
RECOMMENDATION: Approve the Lease Agreement with A -Creative Property
Management for the Agency -owned property at 438 Main Street.
ANALYSIS: Bids for refurbishing this building were solicited from several firms.
A -Creative Property Management presented the most viable and attractive program for
refurbishing and leasing the property. The Agreement has a term of three (3) years with
possible successive three (3) year terms by mutual agreement. Lessee will refurbish the
entire building at a cost of $17,625 within a six (6) week period of occupancy by painting
Interior and exterior, carpeting and making minor cosmetic repairs. Lessee will pay all
taxes, utilities and upkeep with the Agency responsible only for the structure itself. This
will effectively remove the burden of day to day management from the City staff while
providing an income stream to the Agency.
Schedule -of Rents:
First 6 Months Rehabilitation Period - No Rent
Second 6 Months $ 500 per month
Year 2 1,200 per month
Year 3 1,600 per month
A -Creative will occupy the property and may sublease with the Agency's permission.
Under the terms of this lease, the Lessee , or its subleasees, are not eligible for relocation
benefits.
FUNDING SOURCE: No cost to the Agency.
ALTERNATE ACTION: Demolish the building.
ATTACHMENT: Lease Agreement
v
0099U /
P1o11185
LEASE AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF
THE CITY OF HUNTINGTON BEACH AND
NORMAN & SHARON HARBOLDT, JR.,
dba A -CREATIVE PROPERTY MANAGEMENT
FOR THE PREMISES AT 438 MAIN IN THE CITY OF HUNTINGTON BEACH
The REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH,
hereinafter referred -to as "LESSOR", hereby leases to NORMAN &
SHARON HARBOLDT, JR., dba A -CREATIVE PROPERTY MANAGEMENT, a
general partnership, hereinafter referred to as "LESSEE", those
certain premises, herein called "premises," in the County of
Orange, State of California, described more particularly in
Exhibit "A", attached hereto and incorporated herein by this
reference, upon the following terms and conditions:
ARTICLE I. TERM OF LEASE
Section 1.01. Original Term. This lease shall be for a
term of three (3) year(s) commencing at 12:01 a.m.
on June 7, 1993 and ending at 12:01 a.m.
on June 6 199E unless sooner terminated as herein
provided. Should LESSEE fully and faithfully perform all the
terms and conditions of this lease for the full term specified
in this Section, LESSEE may extend this lease with the written
consent of LESSOR for two further successive terms of three (3)
years, each commencing on expiration of the full term specified
above, by giving LESSOR written notice of LESSEE'S desire to do
so at least six (6) months prior to expiration of the term
specified above or any extension thereof.
05/04/93:s - 1 -
�i
P.
LESSOR may, however, upon six (6) months notice in writing
to LESSEE, suspend or revoke this lease agreement without
liability to the City when public necessity so requires, or to
suspend operation immediately hereunder temporarily in the event
of public emergency, as may be reasonably determined by the City
Administrator.
Such suspension will terminate when the public necessity no
longer exists.
Section 1.02. Hold Over. Should LESSEE hold over and
continue in possession of said premises after expiration of the
term of this lease or any extension thereof, LESSEE'S continued
occupancy of said premises shall be considered a month -to -month
tenancy subject to all the terms and conditions of this lease.
Section 1.03. berm Reimbursement. It is agreed between
LESSOR and LESSEE that the Rehabilitation costs of $17,624.00
identified in Article 5, Section 5.01, paragraph 3 of this lease
are to be AMORTIZED over the term of this three (3) year lease
as follows:
$ 5,874.66 Applied to year ONE
$ 5,874.67 Applied to year TWO
$ 5.674.67 Applied to year THREE
$17,624.00 Total Amount to AMORTIZE
In the event LESSOR cancels prior to the entire three (3)
year term of this lease, LESSOR agrees to reimburse LESSEE for
any unamortized portion of the above mentioned Rehabilitation
costs.
05/04/93:s
- 2 -
`'l
ARTICLE 2. RENT
Section 2.01. Rental. LESSEE agrees to pay to LESSOR as
rent for the use and occupancy of said premises the sum as
follows, due each month on or before the first day of each month
hereof:
07-12 $ 500.00
13-24 $1,200.00
25-36 $1,600.00
Rehabilitation Period -
rent free
Any subsequent period beyond the 3rd year to be at $1,600
per month. The rent specified in this section shall be paid by
LESSEE to LESSOR at 2000 Main Street, Huntington Beach,
California 92648, or at such other place or places as LESSOR may
from time to time designate by written notice delivered to
LESSEE. A late charge equal to the prime commercial interest
rate established by the Bank of America shall be added on the
loth day after any payment hereunder is due, but unpaid.
ARTICLE 3. USE OF PREMISES
Section 3.01. Permitted Use. The premises are let for the
purpose of operation of a Property Management/Maintenance and
Real Estate Investment business and other such uses as may from
time to time be approved in writing by LESSOR. LESSOR reserves
the right to prohibit the sale or rental of any item or article
which is objectionable on the basis of public welfare or beyond
the scope of the merchandise necessary for proper service to the
public.
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a
1) Tenant shall have the right to sublet any part of the
building tenant does not occupy, provided, however,
that the sublease is approved by the LESSOR. LESSOR
shall approve or deny the SUBLESSOR within seven (7)
business days from the date of LESSOR'S submittal of
the proposed sublease agreement to LESSOR. Failure to
respond within seven (7) working days shall be deemed
approval.
2) Tenant shall have the right to alter the interior walls
of said building, at tenants sole expense, should such
alterations be necessary, subject to the provisions of
S 5.02 herein.
Section 3.02. Subleasing or Arzsigninng as Breach. LESSEE
shall not encumber, assign, or otherwise transfer this lease,
any right or interest in this lease, or any right or interest in
said premises or any of the improvements that may now or
hereafter be constructed or installed on said premises without
the express written consent of the EXECUTIVE DIRECTOR OF THE
REDEVELOPMENT AGENCY ("the DIRECTOR") first had and obtained.
Neither shall LESSEE sublet said premises or any part thereof or
allow any other person, other than LESSEE'S agents, servants,
and employees, to occupy said premises or any part thereof
without the prior written consent of the DIRECTOR. A consent by
the DIRECTOR to one assignment, one subletting, or one
occupation of said premises by another person shall not be
deemed to be a consent to any subsequent assignment, subletting,
or occupation of said premises by another person. Any
encumbrance, assignment, transfer, or subletting without the
05/04/93:s
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prior written consent of the DIRECTOR, whether it be voluntary
or involuntary, by operation of law or otherwise, is void and
shall, at the option of the DIRECTOR, terminate this lease. The
consent of the DIRECTOR to any encumbrance, assignment including
occupation or transfer hereof of LESSEE'S interest in this lease
or the Subletting by LESSEE of said premises or parts of said
premises shall not be unreasonably withheld; however, the
DIRECTOR shall have the right of first refusal in connection
with any assignment, sale, sublease or transfer hereof and
agrees to exercise or refuse such right in writing within thirty
(30) days of notice by LESSEE. Such right shall not apply,
however, to assignments, transfers, or sublettings to immediate
family members of LESSEE, a family trust, or to any corporate
entity of which LESSEE, or any of LESSEE'S immediate family, are
sole stockholders.
ARTICLE 4. TAXES AND UTILITIES
Section 4.01. Payment -of ]Utility Charges. LESSEE shall
pay, and hold LESSOR and the property of LESSOR free and
harmless from, all charges for the furnishing of gas, water,
electricity, telephone services, and other public utilities to
said premises during the term of this lease or any extension
thereof and for the removal of garbage and rubbish from said
premises during the term of this lease or any extensions thereof.
Section 4.02. Pronertv__Taxgs. LESSEE shall pay before they
become delinquent all taxes, assessments, or other charges
levied or imposed by any governmental entity on the furniture,
trade fixtures, appliances, and other personal property placed
by LESSEE in, on, or about said premises including, without
05/04/93:s
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limiting the generality of the other terms used in this section,
any shelves, counters, vaults, vault doors, wall safes,
partitions, fixtures, machinery, plant equipment, office
equipment, television or radio antennas, or communication
equipment brought on said premises by LESSEE.
All real property taxes or possessory interest taxes and
assessments levied or assessed against said premises by any
governmental entity, shall be paid, before they become
delinquent by LESSEE.
ARTICLE 5. MAINTENANCE, ALTERATIONS AND REPAIRS
Section 5.01. Maintenance by Lessor. LESSOR shall maintain
in good condition and repair the exterior roof, exterior walls,
structural supports, and the foundation of said premises
including heating/air conditioning and plumbing.
Except as otherwise expressly provided in Section 5.02 of
this lease, LESSEE shall at his own cost and expense keep and
maintain all portions of said premises as well as all
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 wear and tear excepted.
A -Creative Property Maintenance will rehabilitate the entire
building in the amount of $17,624 within a six (6) week period
of occupancy. A copy of the rehabilitation agreement is
attached hereto as Exhibit "B" and incorporated herein by this
reference.
05/04/93:s
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Section 5.02. Alterations -and -Liens. LESSEE shall not make
or permit any other person to make any alterations to said
premises or to any improvement thereon or facility appurtenant
hereto without the written consent of LESSOR first had and
obtained. LESSEE shall keep the premises free and clear from
any and all liens, claims, and demands for work performed,
materials furnished, or operations conducted on said premises at
the instance or request of LESSEE. Furthermore, any and all
alterations, additions, improvements, and fixtures, except
furniture and trade fixtures, made or placed in or on said
premises by LESSEE or any other person shall on expiration or
sooner termination of this lease become the property of LESSOR
and remain on said premises; provided, however, that LESSOR
shall have the option on expiration or sooner termination of
this lease of requiring LESSEE, at LESSEE'S sole cost and
expense, to remove any or all such alterations, additions,
improvements or fixtures from said premises.
Section 5.03. Xnspection,by_Lessor. LESSEE shall permit
LESSOR or LESSOR'S agents, representatives, or employees to
enter said premises at all reasonable times, with notice, for
the purpose of inspecting said 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 LESSOR'S interest in said premises under this lease or
to perform LESSOR'S duties under this lease.
Section 5.04. Surrender of Premises. On expiration or
sooner termination of this lease, or any extensions or renewals
05/04/93:s
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of this lease, LESSEE shall promptly surrender and deliver said
premises to LESSOR in as good condition as they are now at the
date of this lease, reasonable wear and tear and repairs herein
required to be made by LESSOR excepted.
ARTICLE 6. INDEMNITY AND EXCULPATION INSURANCE
Section 6.02 - laase. LESSEE agrees to
indemnify, defend and hold City and Agency and the property of
City and Agency, including the premises free and harmless from
any and all claims, liability, loss, damage, or expenses
resulting from any tenant's occupation and use of the premises
or LESSEE's use or occupation of the premises, specifically
including, without limitation, any claim, liability, loss, or
damage arising by reason of:
(a) The death or injury of any person or persons, including
tenants or any person who is an employee or agent of
any tenant, or by reason of the damage to or
destruction of any property, including property owned
by a tenant or LESSEE or any person who is an employee
or agent of LESSEE or tenant, and caused or allegedly
caused by either the condition of the premises, or some
act or omission of LESSEE or of as agent, contractor,
employee, servant, sublessee, or concessionaire of
LESSEE on the Premises;
(b) Any work performed on the premises or materials
furnished to the premises at the instance or request of
LESSEE or any agent or employee of LESSEE, with the
exception of maintenance performed by City and Agency.
05/04/93:s
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(c) LESSEE's failure to perform any provision of this Lease
or to comply with any requirement of law or any
requirement imposed on City and Agency or the leased
premises by any duly authorized governmental agency or
political subdivision.
Section 6.03. Comprehensive Coverage. LESSEE shall, at his
own cost and expense, thirty (30) days prior to possession,
secure and then maintain during the entire term of this Lease
and any renewals or extensions of such term, a broad form
comprehensive coverage policy of public liability insurance
issued by an insurance company acceptable to city and insuring
City and Agency, its officers, employees and agents, against
loss or liability caused by or connected with LESSEE's
occupation and use of the premises under this Lease in amounts
not less than: combined single limit bodily injury and property
damage, including products/ completed operations liability and
blanket contractual liability, of $1,000,000 per occurrence. If
coverage is provided under a fora which includes a designated
general aggregate limit, the aggregate limit must be no less
than $1,000,000. The policy shall name City and Agency, its
officers, and employees as additional insureds, and shall
specifically provide that any other insurance coverage which may
be applicable to the premises shall be deemed excess coverage
and the LESSEE's insurance shall be primary.
i
Section 6.04 Increase -in_Amount_of,Public_Liability and
Property Damage Insurance. Not more frequently than every three
years, if, in the opinion of the Risk Manager or consultant
retained by City, the amount of public liability and property
05/04/93:s - 9 -
damage insurance coverage at that time is not adequate, LESSEE
shall increase the insurance coverage as reasonably required by
City's Risk Manager.
Section 6.05. Fire Insurance on ppilainu and Other
Improvements. LESSEE, at its own cost, shall maintain on the
buildings and other improvements that are or become a part of
the Premises a policy of standard fire and extended coverage
insurance, with vandalism and malicious mischief endorsements,
to the extent of at least full replacement value, in a form
acceptable to the City Attorney.
The insurance policy shall be issued in the names of Agency
and LESSEE, as their interest appear. The insurance policy
shall provide that any proceeds shall be made payable to City
and LESSEE jointly.
Section 6.06. patermination of Replacement Value. The
"full replacement value" of the buildings and other improvements
to be insured shall be determined by the company issuing the
insurance policy at the time the policy is initially obtained.
Not more frequently than once each year, either Party shall have
the right to notify the other Party that it elects to have the
replacement value redetermined by an insurance company. The
redetermination shall be made promptly and in accordance with
the rules and practices of the Board of Fire Underwriters, or a
like board recognized and generally accepted by the insurance
company, and each Party shall be promptly notified of the
results by the company. The insurance policy shall be adjusted
according to the redetermination.
05/04/93:s
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Section 6.07. Loss -of_ Rent Insurance. LESSEE at its cost
shall maintain loss of rent insurance insuring that the minimum
rent will be paid to LESSOR for a period up to six months if the
premises are destroyed or rendered inaccessible by a risk
insured against by a policy of standard fire and extended
coverage insurance with vandalism and malicious mischief
endorsements.
Section 6.08. Workers' Comnensation. LESSEE shall supply
Workers• Compensation Certificate with statutory limits and
employers liability in the amounts of
$500,000/$1,000,000/500,000. LESSEE shall comply with all of
the provisions of the Workers' Compensation Insurance and Safety
Acts of the State of California, the applicable provisions of
Divisions 4 and 5 of the California Labor Code and all
amendments thereto; and all similar state or federal acts or
laws applicable; and shall indemnify, defend and hold harmless
City and Agency from and against all claims, demands, payments,
suits, actions, proceedings and judgments of every nature and
description, including attorney's fees and costs, presented,
brought or recovered against City and Agency, for or on account
of any liability under any of the acts which may be incurred by
reason of any activity performed by LESSEE under this agreement.
Section 6.09. 'Kaivgr of Eubroagtio . The parties release
each other, and their respective authorized representatives,
from any claims for damage to any person or to the premises and
to the fixtures, personal property, and alterations of either in
or on the Premises that are caused by or result from risks
insured against under any insurance policies carried by the
05/04/93:s - 11 -
parties and in force at the time of any such damage.
Each party shall cause each insurance policy obtained by it
to provide that the insurance company waives all rights of
recovery by way of subrogation against either party in
connection with any damage covered by any policy. Neither party
shall be liable to the other for any damage caused by fire or
any of the risks insured against under any insurance policy
required by this Lease. If any insurance policy cannot be
obtained with a waiver of subrogation, or is obtainable only by
the payment of an additional premium charge above that charged
by insurance companies issuing policies without waiver of
subrogation, the party undertaking to obtain the insurance shall
notify the other party of this fact. The other party shall have
a period of 20 days after receiving the notice either to place
the insurance with a company that is reasonably satisfactory to
the other Party and that will carry the insurance with a waiver
of subrogation, or to agree to pay the additional premium if
such a policy is obtainable at additional cost. If the
insurance cannot be obtained or the party in whose favor a
waiver or subrogation is desired refused to pay the additional
premium charged, the other party is relieved of the obligation
to obtain a waiver of subrogation rights with respect to the
particular insurance involved.
Section 6.10. Other _Insurance _Matters. All the insurance
required under this Lease shall:
(1) Be issued by insurance companies authorized to do
business in the State of California, acceptable to
Agency;
05J04/93:s - 12 -
(2) Be issued as a primary policy;
(3) Be noncontributing with any insurance that may be
carried by Agency or City;
(4) Contain an endorsement requiring 30 days' written
notice from the insurance company to both parties
before cancellation or change in the coverage,
scope, or amount of the policy.
Each policy, or a certificate of the policy, together with
evidence of payment of premiums, shall be deposited with Agency
before LESSEE's entry on the premises, and on renewal of the
policy not less than 30 days before expiration of the term of
the policy. At the election of Agency upon the expiration of
the term, Agency shall reimburse LESSEE pro rata for all prepaid
premiums on insurance required to be maintained by LESSEE, and
LESSEE shall assign all LESSEE's right, title, and interest in
that insurance to Agency; in the event of earlier termination of
this Lease Agency shall, at its election, have the right to
require LESSEE to make such assignment to Agency upon Agency's
pro rata reimbursement to LESSEE for prepaid premiums. The
provisions of the preceding sentence shall be applicable only to
the extent that LESSEE's insurance carrier permits assignment to
be made to Agency. LESSEE shall use its best efforts to secure
the prior consent of the carriers to such assignment whenever
LESSEE obtains, renews or replaces any of the insurance required
by this section.
Either Party may effect for its own account any insurance
not required under this Lease.
05/04/93:s - 13 -
k".rl
ARTICLE 7. SIGNS AND TRADE FIXTURES
Section 7.01. Installation antiRgmgyal gf Traft EiXtures.
LESSEE shall have the right at any time and from time to time
during the term of this lease and any renewal or extension of
such term, at LESSEE"S sole cost and expense, to install and
affix in, to, or on said premises such items, herein called
"trade fixture", for use in LESSEE'S trade or business as LESSEE
may, in his sole discretion, deem advisable subject to city
ordinances and permits and S 7.03 below. Any and all such trade
fixtures that can be removed without structural damage to said
premises or any building or improvements on said premises shall,
subject to Section 7.02 of this lease, remain the property of
the LESSEE and may be removed by LESSEE at any time prior to the
expiration or sooner termination of this lease.
Section 7.02. Unrem2ved Trade ,Fixtures. Any trade fixtures
described in this Article that are not removed from said
premises by LESSEE within thirty (30) days after the expiration
or sooner termination, regardless of cause, of this lease shall
be deemed abandoned by LESSEE and shall automatically become the
property of LESSOR as owner of the real property to which they
are affixed and not simply because of the lien described in
Section 7.02 of this lease.
Section 7.03. Eigns. LESSEE shall not place and maintain,
nor permit any other person to place or maintain, on or in any
exterior door, wall, or window of said premises any sign,
awning, canopy, marquee, or other advertising without the
express written consent and approval of LESSOR. Furthermore,
LESSEE shall not place any decoration, lettering, or advertising
05/04/93:s - 14 -
M
matter on the glass of any interior or exterior shop window of
said premises without the written approval and consent of
LESSOR. Should LESSOR consent to any such sign, awning, canopy, -
marquee, decoration, or advertising matter, LESSEE shall
maintain it at all times during this lease in good appearance
and repair. On expiration or sooner termination of this lease,
any of the items mentioned in this section not removed from said
premises by LESSEE on such expiration or termination of this
lease may, without damage or liability, be destroyed by LESSOR.
This lease is expressly contingent upon approval of all signs by
both LESSOR and LESSEE and the City of Huntington Beach.
ARTICLE 8.
Section 8.01. Partial --Destruction. Should premises or the
building on premises be partially destroyed by any cause not the
fault of LESSEE or any person in or about said premises with the
consent, express or implied, of LESSEE, this lease shall
continue in full force and effect and LESSOR, at LESSOR'S own
cost and expense, shall promptly commence and diligently
continue and complete the work of repairing and restoring said
premises to their prior condition providing such work can be
accomplished under all applicable governmental laws and
regulations within one hundred eighty (180) working days.
Section 8.02. Total Destruction. Should said premises or
the building on said premises be so far destroyed by any cause
not the fault of LESSEE or any person in or about said premises
with the consent, express or implied, of LESSEE that they cannot
be repaired or restored to their former condition within
05/09/93:s - 15 -
LVE
one -hundred eighty (180) working days, LESSOR may, at LESSOR'S
option:
(a) Continue this lease in full force and effect by
repairing and restoring, at LESSOR'S own cost and
expense, said premises to their former condition;
or
(b) Terminate this lease by giving LESSEE written notice of
such termination.
Section 8.03. Insurance_Proceeda. Any insurance proceeds
received by LESSOR because of the total or partial destruction
of said premises or the building on said premises shall be the
sole property of LESSOR, free from any claims of LESSEE, except
any and all insurance proceeds, including business interruption
insurance which would ordinarily flow to the benefit of LESSEE.
Section 8.04. Abatement-ofRent. Should LESSOR elect under
Section 8.02 of this lease or be required under Section 8.01 of
this lease to repair and restore said premises to their former
condition following partial or full destruction of said premises
or the building on said premises:
(a) LESSOR shall have full right to enter said premises and
take possession of so much of said premises, including
the whole of said premises, as may be reasonably
necessary to enable LESSOR promptly and efficiently to
carry out the work of repair and restoration; and
(b) The percentage rent described in Section 2.01 of this
lease shall be not abated for the time LESSEE.is
prevented from using the whole of said premises.
05/04/43:s - 16 -
Section 8.05. TotalCondemnaU2n. Should, during the term
of this lease or any renewal or extension thereof, title and
possession of all of said premises be taken under the power of
eminent domain by any public or quasi --public agency or entity,
this lease shall terminate as of 12:01 a.m., of the date actual
physical possession of said premises is taken by the agency or
entity exercising the power of eminent domain and both LESSOR
and LESSEE shall thereafter be released from all obligations,
except those specified in Section 8.08 of this lease, under this
lease.
Section 8.06. Termination Option for Partial Condemnation.
Should, during the term of this lease or any renewal or
extension thereof, title and possession of only a portion of
said premises be taken under the power of eminent domain by any
public or quasi -public agency or entity, LESSEE may, at LESSEE'S
option, terminate this lease if more than five percent (5%) of
the ground area (or floor space) or more than 10 percent (10%)
in value of said premises if taken under the power of eminent
domain. LESSEE shall exercise his option by giving written
notice to LESSOR within 30 days after actual physical possession
of the portion subject to the eminent domain is taken by the
agency or entity exercising the power. This lease shall
terminate as of 12:01 a.m. of the date the notice if deemed
given to LESSOR.
Section 8.07. Partial !CondemnatiQn Without rmin n.
Should LESSEE fail to exercise the option described in Section
8.06 of this lease or should the portion of said premises taken
under the power of eminent domain be insufficient to give rise
05/04/93:s - 17 --
to the option described in Section 8.06 of this lease, then, in
the event:
(a) This lease shall terminate as to the portion of said
premises taken by eminent domain as of 12:01 a.m. of
the day, herein called the "date of taking", actual
physical possession of that portion of said premises is
taken by the agency or entity exercising the power of
eminent domain.
(b) LESSOR, at LESSOR'S own cost and expense, will
remodel/reconstruct the building remaining on the
portion of said premises not taken by eminent domain
into a single efficient architectural unit as soon
after the date of taking, or before, as can be
reasonably done; provided, however, that the percentage
rent specified in this lease shall be abated or reduced
during such remodeling and reconstruction.
Section 8.08. CQDdemnation Away Should, during the term
of this lease or any renewal or extension thereof, title and
possession of all or any portion of said premises be taken under
the power of eminent domain by any public or quasi -public agency
or entity, the portion of the compensation or damages for the
taking awarded to each of the parties to this lease, LESSOR and
LESSEE, shall belong to and be the sole property of the party
LESSOR or LESSEE, to whom it is awarded. LESSEE shall be
entitled to that portion of the compensation or damages awarded
for the eminent domain taking that represents (1) the reasonable
value of LESSEE'S rights under this lease for the unexpired term
of this lease and (2) the cost or loss sustained by LESSEE
05/04/93:s
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because of the removal of LESSEE'S merchandise, trade fixtures,
equipment, and furnishings from the portion of said premises
taken by eminent domain, and (3) whatever other compensation and
or damages which may be usual and customary to LESSEES under the
circumstances.
Section 8.09. Arbitration Qf !CgndemnatiQnAward-,Should
separate awards not be made to LESSOR and LESSEE for the taking
by eminent domain of all or any portion of said premises, and
should LESSOR and LESSEE be unable to agree on the manner the
total award is to be divided between them pursuant to Section
8.08 of this lease, the proper division of the award between
LESSOR and LESSEE shall be settled by arbitration in accordance
with the rules promulgated by the American Arbitration
Association. Each party shall appoint an arbitrator and the two
arbitrators so appointed shall, within a month after both have
been appointed, select a third arbitrator. The decision of any
two of the three arbitrators in writing shall be binding on both
LESSOR and LESSEE. Should no two arbitrators be able to agree
within one month after appointment of the third arbitrator, the
report of the arbitrator most favorable to LESSOR and the report
of the arbitrator most favorable to LESSEE shall both be
disregarded and the report of the remaining arbitrator shall be
binding on both LESSOR and LESSEE. Should either LESSOR or
LESSEE fail to appoint an arbitrator within fifteen (15) days
after receiving written notice from the other to so do, the
arbitrator selected by the other party shall act for both and
his decision in writing shall be binding on both LESSOR and
LESSEE.
05/04/93:s - 19 -
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Section 8.10. Relocation and Assistance. In the event this
lease is terminated for any reason by LESSOR, LESSEE shall not
be entitled to any relocation rights or benefits and expressly
waives such benefits and rights under City, State or Federal
Relocation Assistance Plans.
ARTICLE 9. DEFAULT, ASSIGNMENT, AND
TERMINATION OF MASTER LEASE
Section 9.01. Abaindonment by__I,ESSEE. Abandonment is
defined as should LESSEE breach this lease and abandon said
premises prior to the natural expiration of the term of this
lease, LESSOR may:
(a) Continue this lease in effect by not terminating
LESSEE'S right to possession of said premises, in which
event LESSOR shall be entitled to enforce all his right
and remedies under this lease, including the right to
recover the rent specified in this lease as it becomes
due under this lease; or
(b) Terminate this lease and recover from LESSEE:
(1) The worth at the time of award of the unpaid rent
which had been earned at the time of termination
of the lease;
(2) The worth at the time of award of the amount by
which the unpaid rent which would have been earned
after termination of the lease until the time of
award exceeds the amount of rental loss that
LESSEE proves could have been reasonably avoided;
45/04/93:s - 20 -
(3) The worth at the time of award of the amount by
which the unpaid rent for the balance of the term
of this lease after the time of award exceeds the
amount of rental loss that LESSEE proves could be
reasonably avoided; and
(4) Any other amount necessary to compensate LESSOR
for all detriment proximately caused by LESSEE'S
failure to perform his obligations under this
lease.
Section 9.03. DefamIt by LESSEE. Should LESSEE default in
the performance of any of the covenants, conditions, or
agreements contained in this lease, LESSEE shall have breached
the lease and LESSOR may, in addition to the remedy specified in
the subparagraph (b) of Section 9.02 of this lease, re-enter and
regain possession of said premises in the manner provided by the
laws of unlawful detainer of the State of California then in
effect.
Section 9.04. InggIvency gf ESSEE. The insolvency of
LESSEE as evidenced by a receiver being appointed to take
possession of all or substantially all of the property of
LESSEE, or the making of a general assignment for the benefit of
creditors by LESSEE, or filing a petition in bankruptcy shall
terminate this lease and entitle LESSOR to re-enter and regain
possession of said premises.
Section 9.05. (';emulative Remedies. The remedies given to
LESSOR in this Article 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.
05/04/93:s
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Section 9.06. waiver -of _Breach. The waiver by LESSOR of
any breach by LESSEE of any of the provisions of this lease
shall not constitute a continuing waiver or a waiver of any
subsequent breach by LESSEE either of the same or another
provision of this lease.
ARTICLE 10. MISCELLANEOUS
Section 10.01. Eoroe Majeure,- Unavoidable -Delays. 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, labor troubles,
inability to secure materials, laws or regulations, or any other
cause outside of the control of either party except financial
inability not the fault of the party required to perform the
act, the time for performance of the act will be extended for a
period equivalent to the period of delay and performance of the
act during the period of delay will be excused; provided,
however, that nothing contained in this section shall excuse the
prompt payment of rent by LESSEE as required by this lease or
the performance of any act rendered difficult solely because of
the financial condition of the party, LESSOR or LESSEE, required
to perform the act.
Section 10.02. Sere of Premises - MaintCnance Deposit.
(a) LESSEE shall paint, stain or seal the premises- stucco,
trim, etc., a minimum of every two years, unless it is
determined by LESSOR in its sole discretion, that such
work shall be done once every year. All exterior metal
05/04/93:s - 22 -
surfaces shall be painted no less than once each year
except the roof.
(b) Any and all graffiti shall be removed by LESSEE at it's
own expense from the leased premises within forty-eight
(48) hours of notice thereof.
(c) LESSEE shall not obstruct, cause or permit any
obstruction surrounding the premises or any part
thereof in any manner whatsoever.
(d) LESSEE shall comply with all written notice served by
LESSOR with regard to the care and maintenance of the
premises. Any written notice hereunder shall specify
the work to be done, the estimated cost thereof, and
the period of time deemed to be reasonably necessary
for completion of such work. Should LESSEE fail to
comply with LESSOR'S written notice within fifteen (15)
days, or within a time deemed reasonably necessary of
the time specified therein, LESSEE shall pay over to
LESSOR the estimated cost of such work as set forth in
the notice. Upon receipt of such sum, LESSOR shall
then proceed to cause the required work to be performed.
(e) ]Motice. Any written notice, given under the terms of
this agreement, shall be either delivered personally or
mailed, certified mail, postage prepaid, addressed to
the party concerned, as follows:
City of Huntington Beach:
Mr. Robert Franz
Deputy City Administrator
City of Huntington Beach
2000 Main Street
P.O. Box 190
Huntington Beach, CA 92648
LESSEE:
A -Creative Property Management
Norm and Sharon Harboldt, Jr.
438 Main Street
Huntington Beach, CA 92648
05/04/93:s
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(f) Insurance Hazards. LESSEE shall not commit or permit the
commission of any acts on said premises nor use or permit
the use of said premises in any manner that will increase
the existing rates for or cause the cancellation of any
fire, liability, or other insurance policy insuring said
premises or the improvements on said premises. LESSEE
shall, at his own cost and expense, comply with any and
all requirements of LESSOR'S insurance carriers necessary
for the continued maintenance at reasonable rates of fire
and liability insurance policies on said premises and the
improvements on said premises.
(g) Waste or Nuisance. LESSEE shall not commit or permit the
commission by others of any waste on said premises;
LESSEE shall not maintain, commit, or permit the
maintenance or commission of any nuisance as defined in
Section 3479 of the California Civil Code on said
premises; and LESSEE shall not use or permit the use of
said premises for any unlawful purpose.
(h) Compliance With Law. LESSEE shall at LESSEE'S own cost
and expense comply with all statutes, ordinances,
regulations, and requirements of all governmental
entities, federal, state, county and municipal, relating
to LESSEE'S use and occupancy of said premises whether
such statutes, ordinances, regulations, and requirements
be now in force or hereinafter enacted. The judgment of
any court of competent jurisdiction, or the admission by
LESSEE in a proceeding brought against LESSEE by any
government entity, that LESSEE has violated any such
05/04/93:s
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statute, ordinance, regulation, or requirement shall be
conclusive as between LESSOR and LESSEE and shall be
ground for termination of this lease by LESSOR.
(i) Binding on Heirs and_Successors. This lease shall be
binding on and shall inure to the benefit of the heirs,
executors, administrators, successors, and assigns of the
parties hereto.
(j) Partial Invalidity. Should any provision of this lease
be held by a court of competent jurisdiction to be either
invalid, void, or unenforceable, the remaining provisions
of this lease shall remain in full force and effect
unimpaired by the holding, so long as the reasonable
expectations of the parties hereto are not materially
impaired.
M Sole and Only Agreement. This instrument constitutes the
sole and only agreement between LESSOR and LESSEE
respecting said premises, the leasing of said premises to
LESSEE, or the lease term herein specified, and correctly
sets forth the obligations of LESSOR and LESSEE to each
other as of its date. Any agreements or representations
respecting said premises or their leasing by LESSOR to
LESSEE not expressly set forth in this instrument are
null and void.
(1) Non=piscr3mination. The LESSOR, on behalf of itself and
its successors, assigns, and each successor in interest
to the Site or any part thereof, hereby covenants and
agrees:
05/04/43:s
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L✓ V
(a) Not to discriminate upon the basis of sex, marital
status, race, color, creed, religion, national origin, or ancestry
in the sale, lease, sublease, transfer or rental, or in the use,
occupancy, tenure, or enjoyment of the Site or any improvements
thereon, or of any part thereof. Each and every deed, lease, and
contract entered into with respect to the Site shall contain or be
subject to substantially the following nondiscrimination or
nonsegregation clauses:
(1) In deeds: "The grantee herein covenants by and
for itself, its successors and assigns, and all
persons claiming under through them, that there
shall be no discrimination against or
segregation of any person or group of persons
on account of sex, marital status, race, color,
creed, religion, national origin, or ancestry
in the sale, lease, rental, sublease, transfer,
use occupancy, tenure, or enjoyment of the land
herein conveyed, nor shall the grantee itself
or any persons claiming under or through it,
establish or permit any such practice or -
practices of discrimination or segregation with
reference to the selection, location, number,
use or occupancy of tenants, lessees,
subtenants, sublessees, or vendees in the land
05/04/93:s
26
W
herein conveyed. The foregoing covenants shall
run with the land."
(2) In leases: "The lessee herein covenants by and
for itself, its successors and assigns, and all
persons claiming under or through them, and
this lease is made and accepted upon and
subject to the following conditions:
That there shall be no discrimination against
or segregation or any person or group of
persons, on account of sex, marital status,
race, color, creed, religion, national origin,
or ancestry, in the leasing, renting,
subleasing, transferring, use, occupancy,
tenure, or enjoyment of the land herein leased
nor shall the lessee itself, or any person
claiming under or through it, establish or
permit such practice or practices of
discrimination or segregation with reference to
the selection, location, number, use or
occupancy of tenants, lessees, sublessees,
subtenants, or vendees in the land herein
leased."
05/04/93:s
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�r
(3) In contracts: "There shall be no
discrimination against or segregation of, any
persons, or group of persons on account of sea,
marital status, race, color, creed, religion,
national origin, or ancestry in the sale,
lease, rental, sublease, transfer, use,
occupancy, tenure or enjoyment of the land, nor
shall the transferee itself or any person
claiming under or through it, establish or
permit any such practice or practices of
discrimination or segregation with references
to the'selection, location, number, use or
occupancy of tenants, lessees, subtenants,
sublessees or vendees of the land."
WARNING: READ THE FOLLOWING PARAGRAPH BEFORE
P► M A1, • -
ARTICLE 21. LESSEE'S NON -ELIGIBILITY FOR RELOCATION ASSISTANCE
The leased PREMISES is within a redevelopment project area.
Government Code Section 7260 et seq. provides for relocation
benefits for displaced persons. However, the LESSEE, if
displaced, would not be entitled to relocation benefits by virtue
of the fact that the premises have heretofore been acquired and
are being held by LESSOR expressly for redevelopment purposes. IN
05/04/93:s
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V
CONSIDERATION OF THIS INTERIM LEASE, LESSEE HEREBY ACKNOWLEDGES
THAT NO BENEFITS ARE AVAILABLE AND EXPRESSLY WAIVES ANY CLAIM TO
RELOCATION BENEFITS PURSUANT TO CIVIL CODE Section 3513.
In the event of Subleasing, this paragraph must be inserted in
the contract, initialed and dated by the sublessee.
Executed on August 17, 1993 at
Huntington Beach or Orange County, California.
LESSEE:
LESSOR:
A -Creative Property Management, Redevelopment Agency of the
a general partnership, City of Huntington Beach
By
Signatur r X'A" Chairman
/YOG/1lQ�JZI•��.�1��1/2r ATTEST:
Name (type or print) . t
Its: .P�.•l r. r ?
Title (type or print) Agency -Clerk
BL q� APPROVED. AS TO -'-FORM:-
Y: VLjjjJ_ .
Signature
10/1k. ir' K/ 1111, 904.DT - c Agency Counsel , H 3 3
rpyypp�� �
Its:
Nt li TAU F print) 6 g' l3
Title (type or print)
REV D AND APP E ,.
Executive i ector
INITIATED AND APPROVED:
Deputy Citt.Ad�inistrj&,6or
Administraltive Sery es
05/04/93:s
29
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41
• EXiIBIT B
A•CREATIVE REAL ESTATE & PROPERTY -MANAGEMENT
Residenriol • Commercial, • Indusrr ol•
November 23, 1992`'
• ti
ATTENTION: Paul Larkin,.City of Huntington Beach,
Re-devopement Dept.
RE: Bid for 438 Main St., Huntington Beach,, Ca.
CARPET: $5076.00
�i%Includes removing existing carpet,, repair floors where needed,
install new commercial grade carpet thru-out, including stairs.
Without carpeting back room of unit A 7eee$4300.00
INTERIOR PAINTING: $7630.00. VERTICAL BLINDS WHERE NEEDED: $818.00
Repair ceilings, patch & fill holes in walls, do necessary repairs
to woodwork and trim, spray new acoustic on ceilings where needed.
Includes 2 coats of paint on ceilings, walls, and 2 coats of enamel
on all woodwork, including bathrooms and bath cabinets. Tile 4 bathroon
EXTERIOR: $3600.00
Remove cerainic tile on front & back, install wire and brown coat
and apply finish stucco, install new -wood trim on front where
needed, replace pall window in front of building, paint 2 coats
of paint on all wood trim.
Sand & prime and paint wrought iron with 2 coats of paint.
LANDSCAPE: $500.00
Clean up & trim in front and add some flowering plants. Remove wood
fence on property line in back and replace with steel poles, remove
tree under stairs, and replace with low -maintenance plants,, includes
all clean-iip and haul away debris.
Upon acceptance of bid, paint colors and carpet samples to be presented
for choice of colors.
.
Norman x. Harboldt Jr.'
.A -Creative Property Maintenance ..
• •e
19400 BEACH DLW. • 5LMTE 50 0 HUNTINGTON DEACK CALIFORNIA 92646
5,076.00 t
71650.00 +
818.00 +
31600.00 +
5Q0.00 + t
MY
v -
(714) 964.6774!
. 0 0
TRUCK INSURANCE EXCHANGE
,-RIM CERTIFICATE AS TO -EVIDENCE ~ " INSURANCE
`1
THG.IS NOT AN INSURANCE POLICY. THIS IS ONLY A VERIFICATION OF INSURANCE. IT DOES OT IN ANY WAY AMEND. EXTEND OR ALTER THE
COVERAGE PROVIDED BY THE POLICIES LISTED BELOW.
Named
Insured , SHARON & NORMAN HARBOLDT
Address . DBA: A CREATIVE PROPERTY MGMT
• 19400 BEACH BLVD 15B
HUNTINGTON BEACH, CA 92647
This is to certify that policies for the above named insured are in force as follows:
OWNED
MOBILES,
IF
COVERED
99 60084 66 44
pdrey e - Gen. Lre0.
4
Agent Parcy e • Avto Liao.
Pdrey e -CARGO
porky e - Work Comp.
This Interim Certificate As To Evidence of Insurance shall expire sixty days from17- 01 A M.,
,TUNE 15 - , 19 93 , unless cancelled prior to such date by written notice to the named insured.
JD 54 Please issue a Permanent Certificate
COVERAGE
COMBINED LIMITS OF LIABILITY
COVERED
NOT
COVERED
AuTO
LIABILITY
❑
❑
Owned
Bodily Injury
$
,000 each person
❑
®
Hired
$
,000 each occurrence
❑
ER
®
❑
Non -Owned
Employer's Non -Ownership
Property Damage
$
,000 eoch occurrence
Contingent Liability -
Single limit liability for Coverages checked N above
$ 1 0000 `,000
each occurrence
GENERAL LIABILITY
M8C - OLT
Bodily Injury
$
,000 each person • #
❑
Owners & Contractors
Contractual
$
$
,000 each occurrence
annual o9greQore
L][
*
OOQ products e * e
,,000
❑
Elevators
Products and/or
Property Damage
$
each occurrence
o„nuola47Nare
Completed Operations
,000 products ee e
Single Limit Liability for Coverages checked IA: above
APPRO
D AS TO FORM:
$ 11000 000
000 each occurrence
'
11.111. 1
r' -. City Attcrne), $
annualeggregore
-COG products ee e
❑
�
CARGO $.Vr DO
City Attorney
f
I
,OOQ each vehicle
$
,000 each occurrence
❑
❑
WORKERS'
ComptNSATION
f -
1 C' E
Statutory
• Includes caoocis or Products Warranty, Written Lease of Premises, Casement Agreement, Municipal Ordinance
Agreement, Sidetrack Agreement, Elevator or Escalator Maintenance Agreement only, unless accompanied by
specific endorsement providing additional Contractual Coverage.
T*urrbed Deurrprron .. �•
r ❑ below ❑ wem ed
` YEAR, MAKE, TYPE OF BODY, LOAD CAPACITY I IDENTIFICATION NUMBER
LAST 3
DIGITS
SHOWN
Umbrella Liability $ ,000 retained limit
POLICY NUMBER
$ each occurrence
E aggregate
If this Interim Certificate As To Evidence Of Insurance is to be cancelled prior to the expiration date, we shall
provide 30 days advance notice in writing to whom this certificate is issued.
AS ADDITIONAL INSURED: THE CITY OF HUNTINGTON BEACH, ITS AGENTS, OFFICERS,
Certificate issued to: AND EMt:LOIYE S f) y :3 ��
Name r- AL
And CITY OF HUNTINGTON BEACH Number
• Address . ITS AGENTS, OFFICERS, ND EMPLOYEES ,
�'�c t. 1, r : -3 - - r r
2000 MAIN ST :�rt�
HUNTINGTON BEACH, CA 92648
Countersign
Aurhor
* *# Applicable
tAI3T,iIUiTIIGT�a Wive
0 Not Applicablein Texas_ a
IN BACHC 92148
* In Tews2q FeZ150�M� T�Brs Camp operations. 56-05141-92i22SiWt2oDC/i2ODprsN, owizk 0-91 11301
STATE P.O. BOX 420807. SAN FRANCISCO, CA 94142-0807
COMPENSATION
IN SURAMCE
FUND CERTIFICATE OF WORKERS' COMPENSATION INSURANCE
JULY 16, 1993 POLICYNUMSER: 1362035 - 93
CERTIFICATE EXPIRES: 7-1 -94
CITY OF HUNTINGTON BEACH
REDEVELOPMENT DEPT./ATTN: PAUL LARKIN
2000 MAIII STREET
HUNTINGTON BEACH, CA 92648
L
JOB: ALL OPERATIOPS
This is to certify that we have issued a valid Workers' Compensation inSurance policy in a form approved by the California
Insurance Commissioner to the employer named below for the policy period indicated.
30
This policy is not subject to cancellation by the Fund except upon Xep days' advance written notice to the employer.
30
We will also give you Tf)] days' advance notice should this policy be cancelled prior to its normal expiration.
This certificate of insurance is not an insurance policy and does not amend, extend or alter the coverage afforded by the
policies listed herein. Notwithstanding any requirement, term, or condition of any contract or other document with
respect to which this certificate of insurance may be issued or may pertain, the insurance afforded by the policies
described herein is subject to all the terms, exclusions and conditions of such policies.
X. V-14"
PRESIDENT
EMPLOYER'S LIABILITY LIMIT: $3,000,000 PER OCCURRENCE.
ENDORSEMENT #2065 ENTITLED CERTIFICATE HOLDERS' NOTICE EFFECTIVE
07/16/93 IS ATTACHED TO AND FORMS A PART OF THIS POLICY.
APPROVED As _ TO FOR:d :
GAIL EUTTON, City rttorreY
By: Doput;t City Attorney
01,
EMPLOYER
!r'o °II! {{�
r
NORMAN':HARBOLDT AND SHARON HARBOLDT DBA: .A
CREATIVE PROPERTY I-ANAGEMENT AND
438 MAIN°STREET, SUITE C
HUNTINGTON BEACH, CA 92648
L
SGIF 10262 (REV. 10.861