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HomeMy WebLinkAboutOld Civic Center Site Project - Lease Agreement File 0/1/n From TO Title /P Year -Year • _ • • Subject ��✓plillwp � ■ ■ter CITY OF HUNTINGTON BEACH 2000 MAIN STREET CALIFORNIA 92648 P.O. Box 190 HOUSING AND COMMUNITY DEVELOPMENT August- 4, .1981 Mr. 80ian:Norkaitis Regional Manager Wi I I i al i Lyon Cowny 19 Corporate PI&Z's Newport Beach, California 92660 SUBJECT: HUNTINGTON SEAVIEM Dear Brian: Thank you for your letter.of July 31, 1981 on the su6ject.-MAtter. , As you. know, the:-worki-ng drawings_for the .huntington .Seaview protect-were submitted to' the Building; Division of the tkpartment of. 0evelopoent Services -on- August 3; 1981. Richard'.Luke, of. Kamnitter, Cotton, Weal and 9 delivered the drawings and building permit application along rlth the plan check fee of.$9,218. 'As-we' have. previously. stated, it is t#re Ci ty'S ggoaaal to accompl i sh 00, ini tlal elan check for .this project within. tw6 weeks to.permst. the architect.. boo we to remaify any discrepancies identified in the plan check procedure, and to lssue- a building permit by Auggust 29, 1981 At the time the bull ding.pemi t is issued, all -other' City' fees wi 11 -be due and payable. '. I have requested that the.$uilding Di-viston calculate these fees and I will transmit them- to you as soon as they art known. (At you know,. .the Lease Agreement wasnot presented to the City:-Coukil- at its. August meeting. Our records ir<dicate that .the- Lease Agreement was. transmitted to the ity' Attorneys office On July 7, and -it was assigned to_ A "deputy ©n:July S. 'As et, no woe-d has been forthtaning fry the City Attorneys office rEgarding. thi 's greement. If you should. have any questions, please contact mre at the nuaber below. truly y, rs,. Stephen-V. Ko lee Senior Community vel:opment Specialist SVK:jb Telephone(714)536-5542 -t'N iR'`•'tC"i� '3't(�74rrla' -vY,'S3. ,p,r.,N.. r�ra-_trN t�.•xc.tr.r aq: ._.,.. a .-., nr.,...,.fir.,., h�..... ... ..r,,,{... , r •S X WILLIAM LV0N 19 CORPORATE PLAZA; NEWPORT BEACH, CA 92660 (714) 833-3600 July 31, 1981 Mr. Stephen V.- Kohler Senior Community Dev.lopment Specialist City of. Huntington Beach P.O. Box 190 Hun ting ton .Beach, . Ca. 92648 Re: Huntington Seaview . Dear Steve: I recently received a copy of Mr:. Palin's letter of. July 22nd.;.. directing the various plan checking departments to cooperate in expediting the plan check. process. for our development. We certainly- appreciate. everyone who is working with us within the city to make that August 31st building permit deadline a, reality.. I spoke with our architect today and he has assured me that they will .have the plans completed and to the city, , along. with .our plan: check .fee of. $8,218., for first check on Monday, _August 3, 1981. Our closing with CHFA is scheduled for on or about September 28, 1981, which we have been told by CHFA is a very firm date. If you become aware of any problems in meeting the above dates I would appreciate hearing from you right away. I have noticed that: the city. has now had-.the lease for the subject,.property pp y - fora rox�matel= 1 month_ and trust .that all concerned parties., have :now: had an opportunity to ,review this. lease so that it might be approved for execution at the August 3rd meeting of the City Council: As'.,you are aware, this document, along with our building permits, is an essential part of our CHFA closing. Thanks for your help. Sincerely, THE WILLIAM LYON COMPAY Y Brian V itis Regional nag r BVN:ss cc: Charles W. Thompson - REAL W4TE DEVELOPMENT CITY OF HUNTINGTON BEACH INTER-DEPARTMENT COMMUNICATION HUNTINGTON BEACH : To -Gai 1' Hutton From James W. Pal i n, Director City Attorney Development;.Services t Subject : , PROPOSED LEASE' AGREEMENT : Date July+'.7, 1981 ,;' : HUNTINGTON SEAVIEW ELDERLY HOUSING y' +• PROJECT, OLD CIVIC CENTER SITE. As you know, the City Council has previously approved -a Participation Agreement with the William Lyon Company for .the provision of a 155-unit Section 8 New Con- struction for the Elderly project on .the O1d "Civic Center site.' One-of'the pro-. �. ... : ., visions of the Participation Agreement was a statement of the CityyIs intention z to enter into a l.ease of real property for the- Huntington Seaview_ project to the Wil.11am Lyon Com an for, a.:term of 55 ears.: r Attached please find a ,copy of the proposed Lease Agreement as prepared -by the r�yr William Lyon Company.s_ consulting attorney ', . UESTION: Please review the attached proposed Lease Agreement -and, when approved and executed, please return it to this office so that we may arrange the execution ,by the corporate officers of the-William Lyon Company. This item is scheduled for the consideration of the City Council on August 3, 1981, and the agenda deadline for this Council meeting is July 24, 1981. As always, we ' }+ appreciate your review in sufficient time to accommodate this deadline. `: If you should have any questions, please contact me at extension 5275. L JWP:SVK:jb attachments: proposed Lease Agreement - participation Agreement _4V4 Sn 1 I .. new•rehabilitation seniors-families Housing Concepts REED FLORY MICHAEL A.CASCIOLA July 1, 1981 Stephen V: Kohler City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 Re: Huntington Seaview Dear Steve, Enclosed please find a copy of a proposed lease agreement for the Huntington Seaview elderly site. After you have had an opportunity to review it we suggest a meeting to. discuss it and at the same time coordinate a develop- ment processing schedule and to finalize any remaining items concerning the construction of the project. Thank you very much for your prompt attention to this matter. Very truly yours , *-ichael A. Casciola MC/am enclosure 17895 Sky Park Circle 0 Suite A 0 Irvine, California 92714 0 (714) 540-8245 T LEl This Lease entered into this clay of 1981 , by and between THE CI`.`'Y OF HUNTINGTON REACH , a MUNICIPAL CORP- ORATION having its office at 2000 Main Street, P .O. Be,,: 190 , Huntington Beach, California 92649 , (hereinafter_ called "Lessor" ) , and the WILLIAM .LYON COMPANY, a CA.LIFORNIA CORPORATION having its principal office at 19 Corporate Plaza , Newoo.rt Beach , California 92660 , (hereinafter called "Lessee" ) . WITNESSETH, Lessor hereby leases to Lessee, and Lessee her_ehy rents from Lessor, upon the mutual agreements and covenants and subject to the terms and conditions herein contained , certain real property (hereinafter , "Leased Property" ) , in the CITY OF IIUNTINGTON BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA, described asfollows : See Exhibit "A" Together with all appurtenances thereto, and the right to use any and all facilities adjacent to the premises , all adjoining sidewalks , .roads , alleys , means of ingress anal egress , - utility lines , pipes and connections appurteni'ng to said premises , insofar as Lessor has the power to lease or license the use , of said appurtenances . . It is further mutually agreed between the parties hereto as follows : 1 . The term of this _lease shalt be fifty-five (55) years commencing on the day of and expiring on the day of. inclusive . 2 . Lessee shall pay, or cause to be pnifi , to Los sor .is fixed rent for the Leased Property the sum of -One Dollar. ($1_00). per annum payable in advance on the first -day of each year during the term hereof . DEPOSIT 3 . There shall be no deposits , prepayment, or security deposit required under the terms of this Lease . DISPOSITION 4 . The parties agree that upon the expiration of. the initial lease term that the Lessee shall be entitled to four (4) , five (5) year extensions of the lease at a fair market rent to be determined by capitalizing the then Fair Market Value' of land at ten percent (10%) to be negotiate:l and agrecd on by parties , 90 days prior to the expiration of the initial lease term. If. at the end of the initial lease term of fifty-five (55) years the .Lessor proposed to dispose of the property by sale , the Lessee shall have tine first riqht of refund to purchase the property. MAINTAINING 5 . In the .event that at any time within fifty-five (55) RENT LEVELS years after the execution of this lease agreement, housing subsidies are not available , the Lessee , or its successor shall maintain rental levels for these units at amounts no higher than those that would otherwise be the maximum for Section 8 or comparable HUD/CHFA housing units. Provided further that these units may be converted to other forms of tenancy and/or_ ownership so long as such change continues to provide these units as compC-irable housing opportunities for low and moderate -2- income , persons for at le,�st the full fifty-five (55) year period. QUIET 6. Lessor warrants that it is the owner_ of the Leased ENJOYDIENT Property and has full right and authority to enter into this lease : and Lessor covenants that, for and during the term of this lease and anv er.tensions or renewals thereof_, it will not cause or suffer anything to be done which will impair Lessee ' s lease- hold interest and rights hereunder . Lessor shall defend .the .Lessee in the en-joymont and Peaceful possession' of the..premises durinci . the term. aforesaid. USE OF 7 . Lessee leases the property for the primary purpose PREMISES for use in the construction and OPerati_on of a senior citizens housing development. Lessor represents and warrants that .such uses of the Teased premises are not prohibited or limite:l by any zoninq. or other restrictions concerning the use of swirl . premises or any part thereof: , imposed by any law, statute ,. ordinances , regulation of any govern- mental authority , or an-v deec_l or covenant affectinn said premises . In the event that. the use of the premises for the above stated primary purpose shall hereafter he prohibited or restricted by any t: ordinance , re.c3ulations o.r order of: govern.iiental ciui_hority ,. Lessee shall have the rinlht to terminate this .le ise by giving Lessor thirty (30) d I V S notice in writing. 7C`CUPIINCY 8 . Pursuant to that certain nartici_pation Agreement \ND USE for the Leasing of Certairi. Land for Private Develop- -3- ment by and between TH:r CITY O'' HUI•TINHITMT BEACH and THE WILLIAM LYON COMPANY plated , (hereinafter "The Agreement")., the Lessee agrees for itself and its successor and assigns , and every successor .in interest to the nroperty that the developer of the property shall : (i ) Devote the Property to , and only to, and in accordance with, the uses specified in The Agreement mentioned above and (ii ) mot discriminate upon the basis of race, color, marital status , religion , sex or national origin in the sale, lease , or rental or in the use or occupancv of the Property of an improve- ments erected or to be erecte,.3 thereon, or any .part thereof . (iii) Inclule the legend, "An Open Occupancy Build- ing" in type or lettering of easily legible size and design in a'l.l advertising (including signs) for the sale and/or. .rental of the whole or anv part of the Property. i'he word "Project or "Development" may be substituted fo-r_ the word "Building" where circumstances require substitution . (:.iv ) Comply with the regulat-ion's issued by the Mor. tgaaee an3 al]_ au"licable rules and r.equ- lat.ions issued Pertaining to affirmative mar- keting , affirmative action , leasing and employment standards . -4- (v ) Not se the 1:'ro u pc.rt.y for :any purpose other than for low and moderAte income housing of senior citizens and handicappccl persons Cor a period of fifty-five (55) years from the date of the Lease , or until maturity date of the mortgage pertaining thereto, whichever_ is longer , V the period in which Section 8 or a substantially equivalent successor Program is in effect. The mortgage on the Property may not be prepaid without the prior_ written approval of the City and Mortgagee. For any. unit .rented with sub- silly assistance, senior citizens are defined as single individuals over the age of 62 years , or married couples , i.n. which case at least one spouse is over the acre of 62 .year_ s or as HUD may subsequently re:lefine it. For any unit rented at market rates , senior citizens are defined as single individuals over the aqe of 58 years, or married couples , ' in which case at least one spouse is over .the age of 58 years . If Lessee prepays . the mortgage or transfers the property before the final .mortgage debt' has been pail , all other documents relative to the prepayment, or transfer shall contain appropriate covenants requiring such parcel to be used for low and moderate income provided for in the preceding paragraph. -5- COVENANTS 9 . The agreements and covenants provided in paragraph 7 RUN SOITH above shall be covenants runn.inq with the land and LAND they shall , in any event, and without regard, to technical classification or designation, legal or otherwise, and except only as otherwise specifically provided in the Agreement , be binding , to the fullest extent permitted by law and equity , for .the benefit and in favor of , and enforceable by , the Lessor and any. successor in interest to the Property, or . any part . the.reo.f , against the, Lesser.'. , its successor and assigns and every successor in interest .L-o th^ Property, or any part thereof or any interest therein , and any pa.r_ ty in posses��ion or occu}_�ancy of t_:he Property or any. part thereof . EXCLUSIVE 10.. Lessor hereby agrees .and covenants that no other part USE of the Property , owned or otherwise controlled by Lessor, shall be leased and that Lessee shall. have the exclusive right to said. pr_operty to construct and. operate a senior citizens apartment complex. pu.r- suant to the terms of the Agreement. STATUTES 11 . Lessee shall , in the construction of the structure AND and in the conduct of it busi.ncss on and in the use ORDINANCES of the . leased Property , at Lessee ' s ex.)ons.(,- , comply with and carry out a.l_]_ appl.ic.ab]_e laws ; ordinances , regulations :and orders nf public authority . Lessor shall , at its expense , comply with and carry out.. all applicable laws , ordinances , requlations and order of public authority respecting the conditions of the Property, not resulting from any act of Lessee . -6- 'ONDITIONS 12 . Prior to Lessee ' s construction of improvements to )F the property , the Lessor shall prepare the Property )ROPERTY for development by Lessor in accordance with the terms of the Acfreement. Such preparation shall consist of the following, .un- less the City and the Developer hereafter agree in writing that any of the preparation shall not be done , or that--it shall. be done subsequent to the conveyance. of the Property: (].) Survey. The City at its own cost anal expenses shall initiate an ALTA survey on , the entire site . The survey shall establish boun,iary lines for the housing site and such boundary: .lines shall be .ut.i_.lized for determining the area of responsibility of the Lessee with . the respect to Ian-iscapinq and maintenance duties . (2) Soils Report. The Lessor at its own cost and expense shall furnish the. Lessee with a copy of the . .soils report prepared by Associated Soils rngi,nee.rs , Inc. - of Long Beach, California, dated November 2.2 ,.` 1978 . (3) General Plan Amendment. A Gener.al. Plan Amend- ment _shall be initiated encomnassina the concept of Lessee'-s proposal and r)rocessed by Lessor for re- commendation by the Planniiic7 Commission to the City Council for adoption at no cost or expense to the Lessee (4 ) Specific Pla..n. Stull be initiated by Lessor ' s staff at no cost to Lessee . The Lessee shall cooperate and su?.�ply whatever inf_o.rmatiori ,may be required by ' -7- Lessor staff with respect to the housing development . (5) Environmental Impact Report. The Lessor shall have authorized Pacific Fnvi.ronmental Services of Santa Monica as outside consultants to conduct an EIR study for the proposed development on the Property. The, Lessee shall pay a pro r.ata share of the cost. of the 1IR study for the housing site. (6) Coastal Commission . The Lessor shall initiate at .no cost to Lessee an application to the Coastal Commission , for its approval of the proposed develop-- ment. The Lessee agrees to cooperate and provide _ necessary dor_ument.atio.n r_egtiired by Lessorstaff and to be available for all conferences , presentation and hearings as is required . (7) Demolition and Removal . All existing buildings , surface and below grade structures and other improve- ments on the Property, such as but riot limited to , foundations., cesspits , wells, . b_3sements , debris , paving all vegetation and deleterious material shall be demolished and removed in their entirety . The cavities 'left by .such removal shall be back-filled and compacted according to the recommendations .of a licensed soils engineer, who shall i-nspect .arid certify as to the satisfactory completion of the work , which shall also comply with. the .latest requirements of. HUD ' s data sheet: 79 G as it may be amende,l . (8). Removal and Relocation of Public; Utility Lines . The removal., relocation or abandonment by the Lessor or. by the appropriate public body or. puhlic utility lines , installations , facilities and related equipment_ within or on the Property , as necessary for the construction of the Project. (9) - Filling and Grading . The Lessor . shal_l only be responsible for soil conditions and the olacement of: fill on the Property as hercinabove set forth. (a) Fxpenses , Incolne and Sa.lvago . All expenses-, including current taxes , if any , relating to buildings or other structures demolished. or to be lemolished in accordance with this Section 11 Hereof shall be , horn by , and all income or ,salvage received as a result of the demolition of such bui-ldings or structures shall belong to the Le_ssor.. . (b) Lessor ' s .Responsibilities for Certain Other.. Actions . The L^ssor, without expense to the Lessee or assessment. or claim .,against the Property :an(l pri.or to completion of the Improvements or at such .earlier time -or times as the Lessee and the Lessor may agree in writing , shall , in accordance with the Development Plan, provide or .secure or cause to be provided or secured , the following : (i_ ) VaCat .i011 of Streets , Etc . '"he closing and vacation of all existing streets , alleys , and other public rights-of--way within or abutting on the t'roper.ty. (ii ) Replatting, Resubdivision , Rezoninq -or Zoning Variances . The replattinq , re- subdivision-, rezoning or obtaining of zoni_na variances , if necessary for the conveyance of the Property (iii) Installation of_ . Piihl.ic Utilities. The installation or relocation (bv the City . or by the appropriate public body or public utility company) of such sewers , Ir.: water and gas distribution lines , . electric, telephone, and telegraph lines , and all other. public .utility lines., in- stallations , and facilities as are -necessary to be installed or rel.ocatecl on or in connection �zith .the property at a point to be. designated by Developer by reason of the Development Plan and the development of the Property . Lessee ' s entry i_nt.o possession of the. Property shall be deemed its acceptance of the premises in good order condition and repair , excerpt insofar as specified by written. notice to Lessor, within fifteen (15) days from the date of entev , or as to latent defects . UTILITIES 12 . Lessee shall nay for all water , fuel , gas , light, power, heat and telephone service separately supplied or separately metered to said property . LESSOR' S (1) Right of Entry for Utility Service The Lessor RIGHT. OF. reserves. for itself , and any public utility company , ACCESS TO as may be appropriate , the unquiAi. Ei,ed ' right to. enter PROPERTY upon the Property at .all reason_ible times for the purpose of r_.econstructincT , .maintaining , repairing , or ,ser_vicing t.lac public utilities located within the -10- Property boundary lines .. (2) Lessee Not to Construct over Utility Casements . Provided hat the .Lessor and utility companies do not construct in conflict with structures delineated on plans of Lessee unless said construction takes place on recorded easements referred to in the preliminary title report, the Lessee shall. not construct any building or other structure or improvement on , . over_ , or within the boundary _ lines of any easement ..for public Utilities described .or. referred to in Paragraph (a) hereof, unless such construction is provided f_or i.n such easement or. has been. approved by the holder of such easement. If approval. for such construction is requ�stea by the Lessee , the Lessor .shall use its best efforts to assure that such appr.ov--a.l shall not be withheld Unreasonable. (3) Access to Property. After the developme-Tit of the Property by Lfissee , the Less)ee ,. shall permit the r_epresentatives. of the Lessor_ access to the Property t all reasonable times which it deems necessary for the pur.poso of the Agreement, incl_ulinq but .not limited to,. inspection of all work being performed in connection with the construction of the i riprov eTits . No compensation shall be payable nor shall any charge be made in any form by any party for the access provided for in this Section . REPAIR AND 14 . Lessee shall , at its expense , keep and maintain the MAIP]TENANCE leased Property in a clean , sightly , sanitary order and in good conclit_ion ,and repair , .except as to damage due .to fire, earthquake, flood, windstorm and other -1 l.- casualty or other causes beyond Lessee ' s control . The Lessee shall maintain the cleared land it leases within the Project Area in a neat and .orderl.y condition between the date of possession and the commencement of construction. LINES. 15 . . Lessee- agrees and .covenants that it will not cause or suffer the creation of any mechanic ' s liens , or other liens , for any labor performed or_ materials furnished for or on behalf of T.,essee, which may cl.oud or impair. Lessor_ ' s title to the leased premises and. . that if any such lien sha.l•1 arise due to. an act or ommission of Lessee, Lessee shall promptly remove the'. same at its own expense. DESTRUCTION 16 In the event that the Leased property shall be. rendered OF u.nf_it to a material extent [or use by Lessee due to PREMISES fire, earthquake, flood, windstorm or other casualty, the rent payable under_ this lease shall abate during the time such damage remains unrepaired. Lessee shall promptly proceed to repair the dair.age clue to such casualty. If such _damage " cannot be repaired within One hundred and fifty (1.50) days from the date of damage because of its extent or the impossibility to obtain materials , labor, or due to government restrictions , strikes or other events beyond the control of Lessee , Lessee shall promptly notify Lessor in writing of such. fact and Lessee shall then have the option to terminate this lease forthi,7ith. If Lessee notifies Lessor than it does not elect to exercise this option to terminate , Lessee shall arrange and nroceed to rep•;a".i.i. such damage.. as soon _ s reasonably possible If such damage . sh�i 1.1. .not have been reraired, regardless . of the cause of inability to repair, within Two. hundred and seventy (270) days from the .date of damage , Lessee shall have the option to terminate this lease forthwith. If such event shall occur within six (6) months prior to the. ti_2rmination of this lease , including any optional extensions of the term of .this lease, causing the closing. of the building on the Leased, Property, then this lease sh-ill be terminated thereby. CONDEMNATION 17 . In the event that the Leased Property , or a substantial part thereof , shall "be condemned or, taken by public authority,. Lessee shall have the election to terminate. this ,lease .. In . the event of a t?art_i.al. condemnation or taking , and if Lessee cont.i_nues its use and occupancy of: the portion not so condemned or taken, th-e fixed rent payable her. cun:lcr "shall be .reduced by the proportion that the value of the condemned portion of the Property. bears to the total value of the Property. Lessee shall , in any event , be entitled. to claim compensation from the "public authority concerned for the loss. o.f.. , , or do -acte to, its leasehold interests hereunder and its equipment and other property on the Leased Property , either by seeking a separate award of compensation or' by claiming a share in a single award compensation. f.or .the land and. other Droperty taken , to the extent of Lessee ' s interest. ASSIGNMENT 18 . Lessee repr..esents. and agrees for itsc2lf , and its -1.3- " successors and assi_cgns , th,_it the Lessee will note transfer the Lease to the Property nor assign any of its obligations undertakdh by :this Agreement except that: (1) For security purposes to obt�jin f:i_nancinc7 necessary to- enable the Lessee , or. any .successor_ in interest . to the Pr.oper.ty , or any part thereof , to 'perform its oblic�ati_ons with .respect. to making the improve- ments under the Agreement, and (2) Prior to :the initial endorsement of_ the mortgage by Mortgagee ; Lessee m•ay assi.cin a.11.-or. a portion of its rights and obligations under this Agreement to a joint ventul-e , limit(-,-]. or general partnership for the purpose or, acgui..r. i ng and developing the Property oro.vi_led that Mortgagee approves the transfer and the sail joint venture , limited or. general partnership or other..- entity agrees. in wr_it.:inq to be bound by all of the provisions of this Lease. INSURANCE 1.9. Lessee and/or its assignees or successors shall furnish a n and maintain i force policies of insura:nce anJ executed and maintained _on file with the Lessor, the Lessor ' s prescribed "Certificate. of Insurance and Hold Harmless Agreement" . The required coverage is as follows : one million dollars per occurrence for liability and indemnification. The Lessor is to be an additional insured by Lessee ' s "et al" policy. Before commenccmrnt of any work :of improvement upon the . Pr_operty, the Lessee shall furnish or cause to be. furnished to the Lessor_ duplicate originals or . . appropriate certificates of boci.ily i_njur.y and property caamage ins Lira nce r>olicies in the ,a.mount of at. least . $500 , 000 for any person, $1 , 000 , 000 for any oc.curence and $100 , 000 property damage , the Lessor. 'to. be named as coinsured. SEAL ESTATE 20 . The .Pr_operty shall not be removed from the property CAXES tax rolls and shall not be . exempt.ed from property tax payments , except under programs now or hereafter enacted by the State of California for the general relief of homeowners. Lessee for itself and for its successors and assignS agrees to pay .taxes attributable to the leasehold improvements and not to file an application for exemption from propert - y tax assessment and payment, except for those exemptions which may not now .exist or hereafter_ be enacted by the State of California ,for the cTeneral relief- of home- owners . This in no wiy limits LOSsee ' s right to question or seek reduction of any assessed valuation of the Property. =ORNEY' s 21 . In the event .of any court action between Lessor_ and ?EES Lessee or a sublease to enforce any of the provisions or rights hereunder, the prevailing party shall' be entitled to recover :from the other all costs and expenses, including reasonable attor_ney ' s fees , in such amount as the .cou.r.t may determine . {OLDING 22 . In the event Lessee continues to occupy the Lease ER Property after the:. last day of tho term of this lease , or the extended term and Lessor elects to accept rent thereafter , or otherwise consents in such continued occupancy a tenancy from mon.�h to month shall be created at the same .rental as herein provided, computed on a monthly basis , and on the terms and conditions of this lease so far as applicable . SURRENDER 23 . Upon .termination of this base, whether by lapse of time or otherwise, Lessee shall immediately yiel.] tip. possession and surrender. to Lessor the Leased Property in the condition specified herein . Each narty . acirees to perform any and ..il_1. obligations which un Ier the terms of this lease shall survive . termination. of Lessee ' s leasehold interest. APPLICABLE 24 . The Law of: the State of Cali_f.ornia is hereby declared LAW . to be the law that noverns' the rights of the parties respecting the performance ana enforcement of the obligations of the lease . NOTICE 25 . All payments of 'r_ent, and any notices or .demands to Lessor , under or in connection with the .lease , shall be sent to : The City Treasurer P.O. Box .190 Huntington Beach, California . 92648 or such other places as Lessor may :Greet in wr_itino , from time to time . Anv notices or leniand. to Lessee , under or in connection with this lease shall be sent to Lessee at 19 Corporate Plaza , Newport Beach , California 92660 , or such other place as Lessee may direct, in wr.iti.nq , from time to time . A notice shall be deemed to have been given on the date o.f_ delivery, or if sent' either by registered or certified mail with return receipt request, properly addressed . and postage prepaid , on the date delivered or deposited at a United States Post Office during. its business hours . CONSTRUCTION 26 . The covenants and agreements herein contained shall OF LEASE extend to , enure for the benefit of , and he binding upon the heirs , executors , administr.ato.rs , successors aW assigns of the parties hereto. No captions , title? or heading on this lease shall be. consilered in the interpretation or .construction of any of the provisions hereof . -17- Ifi wigs :rsS v.m.-cm-m-, the Lessor and Lessee. have sicined this lease as of. the dates _set bt)pc s-I.to thclr s. gri,Atures . Lessol,., City Of Itunt.incft:on Beach Date:. ^Mavor Attest : Approved as .to Form By :. City ClcrTc-- City Attorney Lessee,, William Lyon Company Date : By PIILLIi\"1 I,Yr1 , Pr_es-id ent Attest: Secretary Initiated and Approved: Director of Development Services