HomeMy WebLinkAboutPhan Property Management - 2022-05-17 2000 Main Street,
Huntington Beach, CA
92648
City of Huntington Beach � D 9-0
File #: 22-410 MEETING DATE: 5/17/2022
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Sean Joyce, Interim City Manager
VIA: Eric Parra, Chief of Police
PREPARED BY: Ingrid C. Ono
Subject:
Approve and authorize a month-to-month rental agreement with Phan Property Management
to continue leasing the Oak View Police Substation on 17477 Beach Boulevard
Statement of Issue:
The City Council is requested to approve a month-to-month rental agreement with Phan Property
Management (PPM) for the continued lease of real property located at 17477 Beach Blvd, also
known as the Oak View Police Substation. The new month-to-month agreement will allow the
Huntington Beach Police Department (HBPD) sufficient time to conduct a real estate search for
alternate substation locations before deciding whether to pursue a longer term lease with PPM.
Financial Impact:
There is a potential impact of$15,000 for the monthly rental of$2,600/mo. over a four to six month
period and a $2,600 security deposit as the Police Department evaluates other locations for the
substation. The department has identified funds and the fiscal impact will be absorbed within the
department's existing budget.
Recommended Action:
Approve and authorize the Mayor and City Clerk to execute the month-to-month "Vista Beach &
Slater Centre" lease agreement with Phan Property Management for the continued lease of 17477
Beach Blvd.
Alternative Action(s):
Do not approve the agreement and direct staff accordingly.
Analysis:
The HBPD has operated a police substation at 17477 Beach Blvd since 1996. The substation is vital
to daily police operations for report writing, citizen interviews, and investigation follow-up. It is also
regularly utilized by residents and businesses throughout the surrounding community.
City of Huntington Beach Page 1 of 2 Printed on 5/11/2022
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File #: 22-410 MEETING DATE: 5/17/2022
Since 1996, the City leased the location for $1 annually. However, a new property manager has
recently notified HBPD that a rental fee of $2,600 per month will be imposed on June 1, 2022, or the
HBPD must vacate. It is not feasible to acquire a new location and vacate the property in such a
short amount of time. As such, a month-to-month agreement would provide the department time to
evaluate its options. It is expected to use this proposed lease agreement for a four to six month
period for an estimated amount of$15,000.
Environmental Status:
Not applicable.
Strategic Plan Goal:
Financial Sustainability, Public Safety or Other
Attachment(s):
1. Lease Agreement with Phan Property Management for 17477 Beach Blvd.
2. Notice from Phan Property Management
City of Huntington Beach Page 2 of 2 Printed on 5/11/2022
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VIS TA BEACH & S TE-iR CENTRE
THIS LEASE, executed this April 28th, 2022, by and between Phan Property Management at
17473 Beach Boulevard, Huntington Beach, CA 92647, hereinafter called "Lessor" and City of
Huntington Beach hereinafter called "Lessee".
Property Address: 17477 Beach Blvd.,Huntington Beach,CA 92647
— v
WITNESSETH:
That for and in consideration of the covenants and agreements hereinafter set forth to be kept
and performed by Lessee, Lessor hereby leases to Lessee and Lessee does hereby take, accept and
hire from Lessor the leased premises hereinafter described for the period,and at the rental,subject to,
and upon the terms and conditions herein set forth as follows.
1. LEASED PREMISES. The premises ("leased premises') leased hereunder are located
in the City of Huntington Beach, County of Orange, State of California, and shall consist of the
building space hatch marked on the plan attached hereto as Exhibit"A-1". Said Wilding spaee te be
+ + a +r Ah if n„« .... ph45.The leased premises shall have a frontage of approximately
wrrusz-uvcvc.zcr— na" r
feet (said measurement being from the center of partition or outside dimensions in the
case of end space) and a depth of approximately feet (outside dimensions) or a total
square footage of approximately square feet 1030 s ft.
It is expressly understood that the leased premises do not include the roof or exterior face of
walls(except store fronts), and the use of the foregoing is expressly reserved to Lessor.
The leased premises, together with and including other property owned, leased or optioned
by Lessor referred to hereinafter and throughout this Lease as the"shopping center", is now devoted
to, or contemplated for development as a shopping center. The shopping center both present and
proposed is depicted on Exhibit"A"and is legally described in Exhibit"B";both attached hereto and
made a part hereof by this reference.
2. TERM. The term of this Lease shall be for a period of MONTH TO MONTH
commencing on June Is',2022.
3. PAYMENT OF RENT.Lessee hereby covenants and agrees to pay rent to Lessor in the
form of"fixed minimum rent", "persefftage-mat-"and "additional rent" all as hereinafter provided.
The payment of all rents hereinafter set forth shall begin on the commencement date. All rents shall
be paid at the office of Lessor. Time is of the essence in the payment of all forms of rent payable
hereunder.
309
VISTA BEACH/SLATER CENTRE LEASE
4. RENT, Lessee shall pay to Lessor, as rental hereunder, the aggregate of the following:
A. An annual fixed minimum rent of Thirty-One Thousand Two Hundred Dollars
($31,200,00) subject to adjustment as provided in Paragraph 5, payable in 12 equal monthly
installments of Two Thousand Six Hundred Dollars($2,600,00),each payable in advance on the first
day of each month throughout the term. Should the term of this Lease commence on a day other than
the first day of a month, the first monthly installment of fixed minimum rent shall be prorated on the
basis of a 30-day month and shall be paid on the date the term commences.
B. o of gr-ess sales
C. Additional rent(monthly or quarterly as Lessor shall designate) Lessee's share
of the aggregate of the following: (1) Estimated annual taxes and assessments as defined in
Paragraph 1 l; (2)Estimated annual premiums for insurance carried by Lessor pursuant to Paragraph
13; and (3)Estimated common area charges as defined in Paragraph 12 incurred or to be incurred in
connection with the operation of the shopping center. It is understood that the foregoing charges
shall be paid in estimated amounts determined periodically by Lessor. When the actual amounts of
such charges are determined, an appropriate lump sum adjustment shall be made between Lessor and
Lessee.
5. ADJUSTMENT OF FIXED MINIMUM RENT, Commencing at the expiration of the
first year and each year thereafter(`adjustment date"),fixed minimum rent shall be increased,but in
no event decreased, in accordance with the increase,if any,in the cost of living.The fixed minimum
rent, as so adjusted, shall be paid in accordance with Paragraph 4.A. until the next adjustment date.
The adjusted fixed minimum rent shall be determined on each adjustment date by
multiplying the fixed minimum rent set forth in Paragraph 4.A, by a fraction, the denominator of
which is the index figure for the month immediately preceding the "commencement date' of this
Lease as published in the U.S. Department of Labor, Bureau of Labor Statistics, Consumer Price
Index for Urban Wage Earners and Clerical Workers, Los Angeles/Long Beach, Anaheim, all items
(1967-100) ("the CPI") and the numerator of which is the CPI index figure for the month
immediately preceding the month during which the particular adjustment occurs.
The index for the adjustment date shall be the one reported in the U.S.Department of Labor's
most comprehensive official index then in use and most nearly answering the foregoing description
of the index to be used. If it is calculated from a base different from the base period 1967-100.
Figures used for calculating the adjustment shall first be converted under a formula supplied by the
Bureau. If the described index shall no longer be published, another index generally recognized as
authoritative shall be substituted by Lessor.
6. GROSS SALES AND ECORDS The iefm "gresstos+ ams-used in this Lean, shall
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VISTA BEACH/SLATER CENTRE LEASE
eoneessionaires and an), other par-son in er frern the !eased prernises inoluding witheut limitation, (1)
All sales made in, eF upen orders plaeed at er oempleted by delivery in, threugh, or-f+efn the !eased
; (2)All eharges, inealudifig membership fees,made for-seniee, rendered in er fi;em er upen
eed at the !eased premise; and (3) All sales and ehaFges made in eenneratien with busifless
transaeted in whole or in part in, upen, or from the !eased premises. Gross sales shall inolude sales
and ehar-ges made for eash, eredit eaFd er upon eredit ef partly fer eash and partly fer eredit,without
regard te whether or fiet eelleetien is made ef the amounts fer whie-h ered-it is given, and shall alse
inolude� (4) Sales and -11--ges, ther made by Lessee or any ether oeeupant ef oorsuparits of the
!eased premises or so pa-fl., ef part, thereef-, Effid (5) Sales made by means of meehemieal er- ether
sales; allewanees er adjustments granted te eusteffieFs whiGh were previeusly inelude
gfess sajes; transfers-ef mereharidise froFa the !eased premises te any ether- store er stefes,
war-eheuse or wareheuses ef Lessee; frierehandise returned +--- venders; -arid sales, e*oise and Inike
pefeeritage r-efit due hereunder. Lessee shall install ene er mere r-eraerding-eash registers en which all
register tapes shall be retained as part of the r-eeeEds. Lesser-, er its duly authorized repfeseatatives5
shall have aeeess thereta eA all reaseriable times fer the purpese ef e*amining the sarne arid, if Lesser
eleets, of auditing the same, in the frianner hereinafl@r- . .
essee shall keep all feeerds at
Hear the leased Pre—s-es r-- - _l;ed of fiet less than 4 years follewing the date en y4firah Lessee
Lessee shall prepafe and deliver to Lesser within 20 days after the end of eaeb Galendar
month at the plare WheFe r-ent is then required to be paid hereunder-, a true written state erit signed
by Lessee-er Lessee's dt4y aut ized effleer or- agent shewifig in sueb farm and detail as Lesser
fiuc4ien the-feel.r. With said 'l-tement f eaeh menth, Lessee shall pay to Lesser the affleent e
pereentage feat due fer such month. in addition, Lessee shall further prepare and deliver to Lesser en
or befere the thirtieth eetlendaf-year during the term ef this Lea e and
on er befere the d4deth day-after the end of the term ef this Lease, a raeraplete, audited annual
statement, prepared and signed by a aeftified publie areeuritant and signed by Lessee A-;: Lessee!-&
duly authefized effieer ar representative, showing in stieh tail be—or shall speeify the elerne
if Lessee shaii fail to prepare and EWiver, withifl-4he time heroin b --r--_e_i
slatem ties r-equired hereunder-,Lesser-may eleet te trea4 Lessee's failure as a b-fe-RA af:
this Lease, entitling Lesser te terminate this Lease or to &Eereise a y ether remedy provided for i
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VISTA BEACH/SLATER CENTRE LEASE
Lessee'sstatement stibmiRed Lessee, Lesser may, at any time ,Mthin 4 yeafs fbilewing Lessee's failur-e te
submit a statement er fellewing the submittal ef any statement eleet to eendurat an audit ef all beeks
representative.A statement pfepared as a result of sueh audit shall be eenelusively binding on Lesse
the east ef the audit in any ease wher-e the amount of gross sales shewn by sueh a+Wit-is equal to or-Iff
any way ortain te er-show gr-ess sales. Surah audit Fnay be ee-Aueted by Lesser er by any authorized
sales e*eeed oLessee'safneui
reantal the entire peried ba6k te the last audit er eammeneement of the lease, at eptien of Lessen
7. USE. Lessee shall occupy and use the leased premises only for the operation of
Huntington Beach Police Department and for no other purpose whatsoever without the prior
written consent of Lessor.
Lessee shall not:
A. Use or permit the leased premises to be used for any purpose other than that set
forth in this Paragraph and further covenants and agrees to comply promptly with all statutes,
ordinances, rules, orders or regulations of any governmental authority regulating the use or
occupation of the leased premises.
B, Use or permit the use of the leased premises in any manner that wilt tend to
create a nuisance or disturb other tenants or occupants of the shopping center or tend to injure the
reputation of the shopping center,
C. Conduct or permit to be conducted in the leased premises any fire sale, auction,
bankruptcy sale, second-hand sale, going-out-of-business sale or other promotions or sales without
Lessor's prior written consent, except for periodic sales in the normal course of business.
D. Allow any activity to be conducted on the leased premises or store any material
on the leased premises which will increase premiums for or violate the terms of any insurance policy
maintained by or for the benefit of Lessor or the shopping center, in no event shall any explosive,
radioactive or dangerous materials be stored at the leased premises.
E. Use or allow the premises to be used for sleeping quarters, dwelling rooms or
for any unlawful purpose or permit any cooking on the leased premises without Lessor's prior
written consent.
F. SoIicit business, distribute advertising, obstruct, place any merchandise,
vending or amusement machines on, or other use in the conduct of its business, any part of the
common area of the shopping center, including the sidewalks in front of the leased premises wise.
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VISTA BEACHISLATER CENTRE LEASE
G. Erect or install any exterior signs or window or door signs, advertising media or
window or door lettering or placards; install any exterior lighting or plumbing fixtures, shades or
awnings; make any exterior decoration or painting; build any fences, walls, barricades or other
obstructions; or, install any radio, television, phonograph, antenna, loud speakers, sound amplifiers,
flashing or revolving lights, or similar devices on the roof, exterior walls or in the windows of the
leased premises, or make any changes to the store front without Lessor's prior written consent Any
signs, lights, advertising material, loud speakers or anything installed by Lessee on the leased
premises which may be seen, heard or experienced outside the leased premises must be designed or
approved by Lessor. Lessee shall not display, paint or place, or cause to be displayed, painted or
placed any handbills, bumper stickers, or other advertising devices on any vehicles parked in the
common area of the shopping center, nor shall Lessee distribute or cause to be distributed in the
shopping center any handbills or other advertising devices.
H. Interfere with any other tenant's use of the common area or cause or permit any
waste on the leased premises or in the shopping center.
1. >
eperate or- have afty interest in the owner-ship ef
eperatien of any business similar in eahararater- te thm eaeadueted by Lessee in the le
within di f five (5) .,..:le f em the l opt premises.
Lessee shall:
A. Warehouse, store and/or stock in the leased premises only such goods, wares
and merchandise as Lessee intends to offer for sale at retail in, from or upon the leased premises.
Lessee shall use for office, clerical or other non-selling purposes only such space in the leased
premises as it from time to time reasonably required for Lessee's business in the leased premises.
B. Operate all of the leased p---:--- efthiS leaSe-wjdj--�
___A,iee the maximum gross sales. Lessee shall keep the
quality as shall be r-ease ably
leased _�fl far- business during all r-effdlaf ettstefaafy days and hours as is r-easellably
lee-ated
C. install and maintain at all times, displays ef fnerehandise in the Elisplay
signs,windews, if any, ef the demised pfemises. Lessee shall kieep the display wifidews And
If
in the d@fnised pfefni well 1; d during the heurs f+efa Sundown to ;GO p.m. unless pr-evented
herein pfevided, the right at its eptien to eellee
but fiifthpw via,
.--- tent at the rate ef 1/30th ef the fi*ed minimum rent hefein provided fef eaeh afid every
day that Lessee shall fail to eenduet its business as herein provided; said f6i4her rent shaH be deein
PAGE 5 OF 23
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VISTA BEACH/SLATER CENTRE LEASE
to be in lieu anly ef per-eentage Fent as set fefds in Paragfaph 4 B,that might have been earned dufing
D. Keep the leased premises, entrances thereto, walkways adjacent thereto,
loading platforms, service areas, garbage and refuse storage areas free from obstruction and clean
and neat, and arrange for the prompt and frequent pickup of rubbish at such intervals a Lessor may
direct.
8. UTILITIES. Lessee agrees to pay before delinquency all charges for gas, heat, sewer,
power, electricity,telephone, storm drain,water service and water meter charges and all other utility
charges including any hook up or connection fees or charges which may accrue with respect to the
Leased premises during the term of this Lease whether the same be charged or assessed at flat rates,
measured by separate meters or prorated by the utility company or Lessor. Lessor shall in no event
be liable to Lessee for any interruption on the service of any such utilities to the leased premises,
howsoever such interruption may be caused; and this Lease shall continue on full force and effect
despite any such interruptions.
9 REPAIRS. Lessee agrees that its acceptance of the leased premises evidenced by
Lessee's entry into possession thereof shall constitute unqualified proof that the leased premises are,
as of the commencement date of the term, in a tenantable and good condition; that Lessee will take
good care thereof; and Lessee hereby waives the right to make repairs at Lessor's expense under the
provisions of Sections 1941 and 1942 of the Civil Code of California. Any partial destruction which
Lessor is obligated to repair or may repair under any of the provisions of Section 1932, Subdivision
2 and Section 1933, Subdivision 4 of the Civil Code of California are hereby waived by Lessee.
Lessee covenant and agrees at Lessee's own cost and expense to keep the leased premises,
and each and every part thereof including without limitation, all plumbing and electrical conduits,
wiring, fixtures and pipes and all sewers,floors,flooring,walls, lighting, store fronts,plate glass and
glazing, air conditioning and heating systems, ceiling and all other parts thereof in good condition
and repair at all times during the term hereof and to make promptly any and all repairs,renewals and
replacements which may at any time be necessary or proper to put and keep the leased premises in
good condition and repair, and to keep the leased premises and all appurtenances thereto in a good,
clean, safe and wholesome condition at all times during said term. In the event that the leased
premises contain air conditioning and/or elevators, Lessee's said obligation shall also include the
retaining by Lessee of an air conditioning service company and/or an elevator service company
approved by Lessor, which approval Lessor will not unreasonably or arbitrarily withhold, to service
and to maintain the air conditioning equipment and/or the elevator equipment on a regular periodic
inspection and service basis calling for inspection and servicing not less frequently than once
quarterly and provide Lessor with copy of this contract. Lessee expressly agrees to pay promptly for
any and all labor done or material furnished for any work or repair, maintenance, improvements,
alteration or addition done by the Lessee in connection with these items.
Notwithstanding the fact that some of the following items are not part of the leased premises
hereunder and shall be maintained by Lessor, Lessee shall nevertheless reimburse Lessor for
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VISTA BEACH/SLATER CENTRE LEASE
Lessee's pro rate share of the cost of maintenance and repair thereof within 10 days following receipt
of Lessor's statement therefore: roof, exterior walls, foundations and structural portions of the
building exterior trim, all underground and overhead utilities and service lines and drops located
outside the perimeter of the leased premises, and painting or staining of exterior walls, trim or
accessories at such intervals as Lessor shall determine and which work shall be performed by Lessor.
Lessee's pro rata share of such costs shall be determined in accordance with Paragraph 12,
except that the denominator for computing pro rata share shall be the ground floor area of the portion
of the building to which such service pertains as is then leased,open for business and as to which rent
is being paid.
Lessee shall promptly notify Lessor in writing of the need for any of the foregoing repairs to
be performed by Lessor at Lessee's expense and Lessor shall have the right to enter the leased
premises at any time with men and equipment as may be deemed necessary by Lessor to make such
repairs. In no event shall Lessor be liable to any person,including Lessee, its agent or employees for
any loss, damage (including water damage), theft, or destruction of or to any merchandise, fixtures,
money or other property belonging to any person as a result of Lessor's failure promptly or correctly
to perform any of the foregoing repairs or occasioned by acts of Lessor or its agents or employees
while making such repairs. In no event shall Lessee be entitled to any offset, abatement or reduction
in rent during periods of such repair.
In the event Lessee fails or refuses to perform any repairs required of it hereunder, in addition
to all other remedies available hereunder or at law for Lessee's default, Lessor may, but shall not be
obligated to, enter the leased premises,with men and equipment and perform such repairs on behalf
and at the expense of Lessee.
10. ALTERATIONS. Lessee shall not make any alterations, additions, modifications, or
changes ("alterations")to the leased premises without first procuring Lessor's written consent.
Any alterations to the leased premises or the building of which they are a part which are
required by reason of any present or future law, ordinance, rule, regulation or order of any
governmental authority having jurisdiction over the leased premises or the shopping center or of any
insurance company insuring the leased premises, and regardless of whether or not such alteration
pertains to the nature, construction or structure of the building or to the use made thereof by Lessee,
shall be at the sole cost of Lessee regardless of whether the work is performed by Lessor or Lessee.
All alterations, to or upon the leased premises, except removable trade fixtures, shall at once when
made or installed be deemed to have attached to the freehold and to have become the property of
Lessor at the option of Lessor.
11. TAXES AND ASSESSMENTS. Lessee shall be responsible for and shall pay to Lessor
all real property taxes, assessments (whether special or general), fees, rental business tax, (the term
"rental business tax"as used herein,shall include any business tax imposed upon Lessor by the State
of California, or any political subdivision thereof, which is based upon or measured in whole or in
part by amounts charged or received by Lessor under this Lease,provided that Lessee shall only pay
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VISTA BEACH/SLATER CENTRE LEASE
the amount of such rental business tax that would be payable by Lessor if the leased premises were
the only property of Lessor) or surcharges including without limitation any tax, excise on rent, or
levy for parking privileges or in any way relating to environmental protection, or any other tax, levy,
assessment or other charge of any nature whatsoever imposed by any governmental authority having
jurisdiction over the shopping center and levied upon or payable in connection with the shopping
center, leased premises, the operation thereof, or business conducted therein including any such tax,
fee or assessment levied or assessed in lieu of such real property taxes (all of which are herein
referred to as "taxes and assessments"). If the leased premises are not separately assessed, Lessee
shall be responsible for a pro rats share (as defined in Paragraph 12) of all taxes and assessments
except that for purposes of this Paragraph, the denominator for computing pro rate share shall be the
ground floor area of such buildings as are then leased, open for business, and as to which rent is
being paid, as are included in such tax bill. In the event said taxes and/or assessments are not paid in
accordance with Paragraph 4.C.Lessor may, in addition to all other remedies permitted in this Lease,
add an additional charge to the penalty and interest that would have been due if Lessee had failed to
make timely payments directly to the tax collector.
Lessee shall pay, before delinquency, all property taxes and assessments on the furniture,
fixtures, equipment,merchandise and other property of Lessee at any time situated or installed in the
leased premises, and, in addition, on improvements in the leased premises made or installed by
Lessee subsequent to the commencement date. If at any time during the term of this Lease any of the
foregoing are assessed as a part of the real property of which the leased premises are a part, Lessee
shall pay to Lessor upon demand the amount of such additional taxes as may be levied against said
real property by reason thereof. For the purpose of determining said amount, figures supplied by the
County Assessor as to the amount so assessed shall be conclusive.
12. COMMON AREA. Lessor hereby grants to Lessee the non-exclusive right in common
with others during the term of this Lease to use the common area (as hereinafter defined) of the
shopping center for itself, its employees, agents, customers, invitees and licensees.
The common area shall be subject to the exclusive control and management of Lessor or such
other persons or nominees as Lessor may designate to exercise such management or control, in
whole or in part over the common area, in Lessor's place and stead. And Lessor, and Lessor's
nominees and assignees shall have the right to establish,modify,amend and enforce reasonable rules
and regulations with respect to the common area. Lessee agrees to abide by and conform with such
rules and regulations: to cause its concessionaires, and its and their employees and agents, so to
abide and conform; and to use its best efforts to cause its customers, invitees and licensees so to
abide and conform.
Lessor shall have the right to dose, if necessary,all or any portion of the common area to such
extent as may in the opinion of Lessor's counsel be necessary or desirable in order to prevent a
dedication thereof or the accrual of any rights of any person or of the public therein; to close
temporarily all or any portion of the common area to discourage non-customer use;to use portions of
the common area while engaged in making additional improvements or repairs or alterations to the
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VISTA BEACWSLATER CENTRE LEASE
shopping center;and to do and perform such other acts in,to, and with respect to the common area as
Lessor, in its sole judgment, shall determine to be appropriate for the shopping center.
Lessor shall have the unqualified right to increase or reduce the common area, and to
rearrange the parking spaces, driveways and improvements on the common area.
Lessor shall have the sole right to place vending or amusement devices and public telephones
on the common area.
Lessee agrees that its officers, agents, employees, vendors, suppliers and other independent
contractors will use such access roads and will operate trucks and trailers in delivering merchandise
to and from the leased premises at such days and hours upon and over mach access roads as are
designated therefore by Lessor a means of ingress to and egress from the leased premises.The use of
such access roads by Lessee and Lessee's officers, agents, employees, vendors, suppliers and other
independent contractors shall be subject to the rules and regulations established by Lessor with
respect to the use thereof.
All automobiles, trucks and other vehicles of Lessee shall be parked only where and as
permitted by Lessor from time to time, and officers, agents and employees of Lessee shall park their
vehicles only in such places or in such particular area, if any, as may be designated by Lessor as
employee parking area. Lessee agrees that when and if requested by Lessor so to do, Lessee will
furnish Lessor with the license numbers of the vehicles of Lessee and other respective officers,
agents and employees.
If any vehicle of Lessee or any concessionaire or any of their respective officers, agents or
employees, is parked in any part of the shopping center other than the employee parking areas,
Lessee hereby authorizes Lessor to engage a towing service to remove such vehicle at Lessee's
expense.
As used herein, "common area" means all areas of the shopping center(as the same may be
expanded or decreased at Lessor's option) except those areas, which from time to time are
designated by Lessor as being outside the common area or are leased to or within the exclusive
control of a tenant of the shopping center. The common area includes, without limitation, the land
and facilities utilized for or as parking areas, access and perimeter roads, truck passageways (which
may be elevated or subsurface in whole or in part,)and platforms therein(including,notwithstanding
anything herein contained, any such platform as is for the use of Lessee or concessionaire); service
corridors and stairways providing access from store premises to such platforms and truck
passageways; loading docks, landscape areas, exterior walks, arcades and / or balconies; sign and
directory equipment;wash rooms comfort room,drinking fountain,toilets and other public facilities,
bus station, taxi stands and the like; areas devoted to or for maintenance purpose or equipment
including management offices; and any areas dedicated or belonging to the public or any
government authority,which are contiguous or near to the shopping center and which are required to
be maintained by or the cost of maintenance required to be borne by Lessor.
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VISTA BEACH/SLATER CENTRE LEASE
Lessee shall pay to Lessor in the manner set forth in Paragraph 4.C. Lessee's pro rata share of
all charges of any kind or nature incurred or paid by Lessor in connection with the maintenance,
repair, operation or ownership of the common area, which charges shall include but not necessarily
be limited to the expense of the following:
Repair, replacement, and maintenance, surfacing, resurfacing, painting, restriping. cleaning,
sweeping, window washing, janitorial services, planting, and landscaping, signs and markers,
lighting and other utilities, parking control and security guards and fire protection or detection
service, all real property and personal property taxes and assessments (as defined in Paragraph 11),
levied or assessed again the common area, premiums for all forms of insurance described in
Paragraph 13, covering the common area as well as Workmen's Compensation Insurance and any
other insurance carried by and deemed advisable by Lessor, wages and salaries for personnel
employed to operate the common area, cost of machinery and equipment used for common area
maintenance or rental thereof,plus 15%of all the foregoing charges to cover Lessor's overhead.
Lessee's pro rata share of common area expenses shall be determined by multiplying such
expenses by a fraction, the numerator of which is the total number of square feet of floor area in the
leased premises and the denominator of which is the total number of square feet of floor area of
buildings located in the shopping center and which is then leased,open for business and as to which
rent is being paid, at the time the proration is made. Lessor shall periodically determine ground floor
area for purposes of the above calculation and Lessor's determination shall be conclusive.
13. INSURANCE. At all times during the term of this Lease, Lessor shall maintain in full
force and effect with insurance companies licensed to do business in the State of California and
otherwise satisfactory to Lessor in its sole discretion one or more policies including the following
coverage's:
A. A. General public liability insurance against claims for bodily injury, death or
property damage occurring in or upon the common area with limits of coverage of not less than
$500,000 for death or injury to one person,$1,000,000 for death or injury to more than one person in
a common accident or occurrence, and $50,000 for damage or injury to property. Lessor may
increase the foregoing limits if it deems such increase desirable to protect Lessor and Lessee.
B Fire, extended coverage, vandalism, malicious mischief, earthquake, flood, fire
rental and sprinkler leakage (if building contains sprinklers) insurance in such form and with such
covered perils as Lessor deems appropriate in its sole discretion insuring the building and other
improvements on the leased premises in an amount equal to the full replacement value thereof. All
proceeds shall belong to and be the sole property of Lessor and Lessee hereby assigns to Lessor or its
nominee all of Lessee's right, title and interest thereto.
Lessee shall pay its pro rata share of such premiums (said pro rate share being the same as
defined in Paragraph 12 above) in the manner provided in Paragraph 4.Lessor shall have the right to
maintain blanket policies with the foregoing limits provided that the amount of insurance premium
payable by Lessee hereunder shall be determined as the premium Lessee would have been required
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VISTA BEACH/SLATER CENTRE LEASE
to pay if Lessor had caused to be issued a separate policy of the particular insurance on the leased
premises in accordance with applicable tariff rules and rates duly promulgated by same by the
Insurance Service Bureau or any successor insurance industry rating authority.
At all times during the term of this Lease, Lessee shall maintain in full force and effect with
insurance companies licensed to do business in the State of California and otherwise satisfactory to
Lessor in its sole discretion one or more policies evidencing the following coverage;
1 General public liability and workmen's compensation insurance against claims
for bodily injury, death or property damage occurring within the leased premises with limits of
coverage of not less than $500,000 for death or injury to one person, $1,000,000 for death or injury
to more than one person in a common accident or occurrence and $50,000 for damage or injury to
property. Lessee shall increase the foregoing limits if Lessor deems such increase desirable to
protect Lessor and Lessee.
2. Plate glass insurance on the leased premises and policies of fire insurance,
including extended coverage and such other insurance as Lessor may require, on all fixtures and
equipment installed by Lessee and contents in the leased premises,such insurance to be in an amount
equal to 100% of the insurable value thereof.
All proceeds of such property insurance shall be paid to Lessor and held in trust to be used for
the repair or replacement of the plate glass fixtures, equipment or contents so insured. A duplicate
original of all such policies shall be delivered to Master Lessor at least 15 days prior to the time such
insurance is first required to be carried by Lessee, and thereafter at least 15 days prior to the ex-
piration or cancellation of any such policy. In the event Lessee fails at any time during the term of
this Lease to obtain such insurance or to provide such evidence thereof, Lessor shall have the right
but not the duty to procure such insurance and Lessee shall pay to Lessor the costs and expenses
thereof as additional rent when the next payment of fixed minimum rent is required to be made.
Lessor and Lessee agree that all insurance policies shall contain a clause permitting the
insured to waive the insurance carrier right of subrogation against the other arising out of the
occurrence of any casualty insured against Lessee and Lessor hereby waive any such right of
subrogation against the other party hereto.
14. DAMAGE AND DESTRUCTION. In the event the leased premises, or any part
thereof, shall be damaged by any casualty,this Lease shall remain in full force and effect, and Lessor
shall repair such damage and put the leased premises in good condition as rapidly as reasonably
possible. Provided such damage was not caused or contributed to by the act of negligence of Lessee,
its agents or employees, Lessee shall be entitled to an equitable abatement of the fixed minimum rent
during periods of such restoration, but Lessee shall remain liable for all other charges hereunder
including, without limitation, percentage rent.
Notwithstanding any other provisions of this Paragraph 14 to the contrary, if the leased
premises shall be damaged and such damage shall be to the extent of more than 15% of the
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replacement value of the leased premises at the time of such damage,then Lessor may at its election
upon notice to Lessee,within 90 days after such damage,terminate this Lease as of the date of such
damage.
In the event that 25% or more of the building area or common area of the shopping center
shall be damaged or destroyed by casualty, notwithstanding that the leased premises may be
unaffected by such casualty, Lessor may terminate this Lease and the tenancy hereby created by
giving to Lessee written notice of Lessor's election so to do, within 90 days following the date of
said occurrence. Rent shall be adjusted as of the date of such termination.
15. EMINENT DOMAIN. If there is any taking of or damage to all or any part of the leased
premises or any interest therein because of the exercise of the power of eminent domain,whether by
condemnation proceedings or otherwise, or any transfer of any part of the leased premises or any
interest therein made in avoidance of the exercise of the power of eminent domain (all of the
foregoing being hereinafter referred to as "taking") prior to or during the term hereof, the rights and
obligations of the Lessor and Lessee with respect to such taking shall be as follows:
A. If there is a taking of all of the leased premises, this Lease shall terminate as of
the date of such taking.
B. If 25%or more of the ground floor area of the leased premises shall be taken, or
25% of the land area described in Exhibit `B" (as the same may be amended) shall be taken
(regardless of whether or not any part of the leased premises is taken)then, in that event,Lessor shall
be entitled to elect either to terminate this Lease or to rebuild the remainder of the leased premises or
the shopping center. Lessor shall give written notice to Lessee of its election no later than 90 days
after the date Lessor receives notice that possession or title to the portion of the leased premises or
shopping center taken has vested in the condemner.
If this Lease is terminated in accordance with the provisions of this Paragraph 15 such
termination shall become effective as of the date physical possession of the particular portion is
taken or immediate possession is ordered. The parties shall be released from all further liability
hereunder. If this Lease is not terminated as provided in this Paragraph 15, Lessor shall restore the
remainder of the improvements occupied by Lessee so far as practicable to a complete unit of like
quality, character, and condition as that which existed immediately prior to the taking.
If this Lease is not terminated as provided in this Paragraph 15, the annual fixed minimum
rent only set forth in Article 4A for the remainder of the term shall be reduced by the proportion
which the number of square feet of ground floor area of the leased premises taken bears to the total
ground floor area of the leased premises immediately before the taking.
The entire award or compensation in such proceedings,whether for a total or partial taking or
for diminution in the value of the leasehold or for the fee shall belong to and be the property of
Lessor, and Lessee hereby assigns to Lessor all of Lessee's interest in any award.
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16, ASSIGNMENT AND SUBLEASE. Lessee shall not assign this Lease or any interest
therein whether voluntarily, by operation of law, or otherwise, and shall not sublet the leased
premises or any part thereof, except by written permission and consent of Lessor being first had and
obtained. Consent of Lessor to any such assignment shall not be unreasonably withheld if: (1)At the
time of such assignment or transfer Lessee is not in default in the performance and observance of any
of the covenants and conditions of this Lease; (2)The assignee or subtenant of Lessee shall expressly
assume in writing all of Lessee's obligations hereunder; (3)Lessee shall provide proof to Lessor that
the assignee or subtenant has a financial condition which is satisfactory to Lessor and Lessor's
lender and (4)The leased premises continue to be used solely for the purposes set forth in Paragraph
land the assignee or subtenant is, in Lessor's opinion, capable of operating such business. In
connection with any such assignment or sublease, Lessee or the assignee of Lessee shall pay to
Lessor a fee of$250. However, prior to Lessor's consent for such assignment or subletting, Lessor
shall have the right to terminate this Lease upon written notice to Lessee and upon such termination
Lessee shall have no further obligation to Lessor by reason of this Lease.
Any such subleasing or assignment,even with the approval of Lessor shall not relieve Lessee
from liability for payment of all forms of rental and other charges herein provided or from the
obligations to keep and be bound by the terms, conditions and covenants of this Lease. The
acceptance of rent from any other person shall not be deemed to be a waiver of any of the provisions
of this Lease, or consent to the assignment or subletting of the leased premises. Consent to any
assignment or subletting shall not be deemed consent to any future assignment or subletting, Any
merger, consolidation or transfer of corporate shares of Lessee, if Lessee is a corporation, so as to
result in a change in the present voting control of the Lessee by the person or person owning a
majority of said corporate shares on the date of this Lease, shall constitute an assignment and be
subject to the conditions of this paragraph.
17. LESSEE'S DEFAULT. The following shall be deemed to be acts of default under this
Lease;
A. Lessee shall fail, neglect or refuse to pay any installment of fixed minimum
rent, additional rent, percentage rent or any other charge including, without limitation, penalty
charges, required to be paid by Lessee hereunder at the time and in the amount as herein provided,or
pay any moneys agreed by it to be paid promptly when and as the same shall become due and
payable under the terms hereof and such default shall continue for a period of more than 5 days after
notice thereof in writing given to Lessee by Lessor.
B. Lessee shall fail, neglect or refuse to keep and perform any of the other
covenants, conditions, stipulations or agreements herein contained and covenanted and agreed to be
kept and performed by Lessee and such default shall continue for a period of more than 15 days after
notice thereof in writing given to Lessee by Lessor; provided, however that if the cause for giving
such notice involves the making of repairs or other matters reasonably requiring a longer period of
time than the period of such notice, Lessee shall be deemed to have complied with such notice if
Lessee has commenced and is diligently prosecuting compliance therewith.
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VISTA BEACH/SLATER CENTRE LEASE
C. Any attachment or levy of execution or similar seizure of the leased premises or
Lessees merchandise, fixtures or other property at the leased premises or any foreclosure,
repossession, or sale under any chattel mortgage, security agreement or conditional sales contract
covering Lessee's merchandise, fixtures or other property at the leased premises; or the filing of any
petition by or against Lessee under any chapter of the Bankruptcy Act, or the adjudication of Lessee
as a bankrupt or insolvent; or the appointment of a receiver or trustee to take possession of all or
substantially all of the assets of Lessee or a general assignment by Lessee for the benefit of creditors;
or any other action taken or suffered by Lessee under any State or Federal insolvency or bankruptcy
act and the continuation thereof for more than 20 days.
In the event of an act of default by Lessee, Lessor may, at its option: (1) Terminate Lessees
right to possession of the leased premises because of such breach and recover from Lessee all
damages allowed under Section 1951.2 of the California Civil Code, including, without limitation,
the worth at the time of the award of the amount by which the unpaid rent for the balance of the term
after the time of award exceeds the amount of such rental loss that Lessee proves could be
reasonably avoided, or; (2) Not terminate Lessee's right to possession because of such breach, but
continue this Lease in full force and effect and in that event (a) Lessor may enforce all rights and
remedies under this Lease, including the right to recover the rent and all other charges due hereunder
as such rent and other charges become due, and (b) Lessee may assign its interest in this Lease with
Lessor's prior written consent,which consent shall not be unreasonably withheld in accordance with
Paragraph 16.
In the event of any reentry, Lessor may remove all persons from the leased premises and all
property and any signs located in or about the leased premises and place such property in storage in
a public warehouse at the cost and risk of Lessee.
No reentry or reletting of the leased premises of any nature served under unlawful detainer
action or the filing of any unlawful detainer or similar action shall be construed as an election by
Lessor to terminate this Lease unless a written notice of such intention is given by Lessor to Lessee;
and notwithstanding any such reletting without such termination, Lessor may at any time thereafter
elect to terminate this Lease.
Except in the case of Lessor's willful misconduct, Lessee hereby waives all claims or
demands for damages that may be caused by Lessor in reentering and taking possession of the leased
premises as hereinabove provided and all claims or demands for damages which may result from the
destruction of or injury to the leased premises and all claims or demands for damages or loss of
property belonging to Lessee or to any other person or firm that may be in or about the leased
premises at the time of such reentry.
Nothing contained in this Lease shall limit Lessor to the remedies set forth in this Paragraph
17; and upon Lessee's default Lessor shall be entitled to exercise any right or remedy then provided
by law, including, but without limitation,the right to obtain injunctive relief and the right to recover
all damages caused by Lessee's default in the performance of any of its obligations under this Lease.
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VISTA BEACWSLATER CENTRE LEASE
Neither this Lease nor any interest heroin nor any estate created hereby shall pass by
operation of law under any State or Federal insolvency or bankruptcy act to any trustee, receiver,
assignee for the benefit of creditors or any other person whatsoever without the prior written consent
of Lessor.
In computing damages or rental due under this Lease, the value of percentage rent for any
period subsequent to the termination of this Lease or the termination of Lessee's right of possession
shall be an amount per year equal to 1/3 of the total percentage rent paid by Lessee for the last 3 full
years, provided that if 3 full years have not elapsed at the time of such default,such value shall be an
amount per year equal to the average yearly percentage rent theretofore paid by Lessee.
If any payment of rent or other payment is not paid when due,the Lessee shall, as a penalty
for such delinquency, pay to Lessor a $75 late charge if payment is not received within 5 days of
due date. It is further agreed that in the event Lessor shall receive two (2) consecutive rental
payments after the above referenced due date, Lessor shall have the option, at its sole discretion,to
require that the rent as set forth in Paragraph 4 herein shall no longer be paid monthly in advance but
shall be paid quarterly in advance. This provision shall not be construed to relieve Lessee from any
default hereunder arising through the failure on the part of Lessee to make any payment at the time
and in the manner specified, in addition any sum accruing to Lessor under the terms and provisions
of this Lease which shall not be paid when due shall bear interest at the highest lawful rate from the
date the same becomes due and payable by the terms and provisions of this Lease until paid.
18. DEFAULT BY LESSOR. Lessor shall in no event be charged with default in the
performance of any of its obligations hereunder unless and until Lessor shall have failed to perform
such obligations within 30 days(or such additional time as is reasonably required to correct any such
defaults) after written notice by Lessee to Lessor properly specifying wherein Lessor has failed to
perform any such obligation.Notwithstanding any default by Lessor, Lessee shall not have the right
to exercise any remedy provided for herein or at law unless and until Lessee shall have delivered a
written notice to any lender holding a trust deed against the leased premises or the shopping center or
portion thereof specifying wherein Lessor has failed to correct or remedy such default, which such
notice may not be delivered until after the expiration of the period set forth herein for Lessor to
remedy such default and shall grant to the lender an additional equal period within which to cure
such default.
19. SURRENDER OF PREMISES. At the expiration of the tenancy hereby created, Lessee
shall surrender the leased premises in the same condition as the leased premises were in upon
delivery of possession thereto under this Lease, in addition to any alterations or additions which
Lessor elect to keep pursuant to Paragraph 10, reasonable wear and tear excepted, and shall
surrender all keys for the leased premises to Lessor at the place then fixed for the payment of rent
and shall inform Lessor of all combinations on locks, safes and vaults, if any, in the Ieased promises.
No act or conduct of Lessor,except a written acknowledgement of acceptance of surrender signed by
Lessor, shall be deemed to be or constitute an acceptance of the surrender of the leased premises by
Lessee prior to the expiration of the term of this Lease.
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If prior to the termination of this Lease or within 15 days thereafter,Lessor elects,by written
notice to Lessee, Lessee shall promptly remove the additions, improvement, fixtures, trade fixtures
and installations which were placed in the leased premises by Lessee and which are designated in
said notice, and shall repair any damage occasioned by such removal; and in default thereof Lessor
may effect said removals and repairs at Lessee's expense. The covenant of Lessee contained herein
shall survive the expiration or termination of the Lease term.
20. INDEMNIFICATION, RELEASE AND LIENS. Lessee agrees and this Lease is made
upon the express condition that Lessor shall not be liable, responsible, or in any way accountable,to
Lessee, Lessee's agents,employees,servants, customers or invitees,or to any person whomever, foe
any loss, theft or destruction of or damage (including but not limited to any damage caused by rain
storm or other water damage) to any goods, wares, merchandise, fixtures or other property stored,
kept,maintained,or displayed in,on or about the leased premises,or in,on or about the facilities,the
use of which Lessee may have in conjunction with this Lease,nor for injury to or death of any person
or persons who may at any time be using,occupying or visiting the leased premises or thereabout re-
gardless of the nature or cause of such injury,damage or destruction including without limitation,the
negligence of Lessor.
Lessee agrees to indemnify,defend and hold harmless Lessor, its agents and employees from
and against any and all expense, liability and claims for damage to or loss of property (including
Lessee's property) or injury to or death of persons(including Lessee, it agents, employees, visitors,
or invitees) directly or indirectly resulting from anything occurring from any cause on or about the
leased promises, in connection with the maintenance or operation of Lessee's business, or Lessee's
occupation or use of the leased premises. Lessee shall discharge any judgment or compromise
rendered against or suffered by Lessor, as a result of anything indemnified against hereunder and
shall reimburse Lessor,for any and all costs,fees,or expenses incurred or paid by Lessor,(including,
without limitation,reasonable attorneys' fees)in connection with the defense of any action or claim.
Lessee shall keep the leased promises and any buildings located thereon and all of the right,
title and interest of Lessee and Lessor, therein free and clear of all liens or claims, which may ripen
into such a lien or encumbrance, and in the event Lessee fails to do. Lessor may pay such lien or
encumbrance or claim, and on or before the I Oth day of the month following the month during which
such payment is made, Lessee shall pay to Lessor such sums so paid, plus such reasonable costs and
attorneys' fees as may have been incurred by Lessor;provided, however,that in the event Lessee in
good faith disputes such lien or encumbrance and with reasonable promptness furnishes an
indemnity bond or such undertaking in an amount sufficient either to procure the release of such lien
or encumbrance or to indemnify against the principal amounts thereof, together with such costs or
attorneys' fees may be covered by said lien or encumbrance, then the furnishing of such bond or
undertaking shall be deemed due compliance with the foregoing provision.
21 SUBORDINATION AND FINANCING. This Lease shall in all respect be junior and
subordinate to any ground lease or other matters of record and all of the provisions contained therein.
In the event of any conflict between the terms hereof and any of the foregoing,the provisions of the
foregoing shall prevail. Subject to the foregoing, and upon payment by Lessee of all of the rents
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VISTA BEACFYSLATER CENTRE LEASE
herein provided, and upon the observation and performance of all of the covenants, terms and
conditions on Lessee's part to be observed and performed, Lessee shall quietly hold and enjoy the
leased premises for the term hereby leased without hindrance or interruption by Lessor or any other
person or persons lawfully or equitably claiming by,through or under Lessor, subject nevertheless to
the terms and conditions of this Lease.
Lessee covenants and agrees that upon written request of Lessor, Lessee will make,execute,
acknowledge and deliver any and all instruments requested by Lessor Which are necessary or proper
to effect the subordination of this Lease to any mortgage, deed of trust, indenture or other
encumbrance, and hereby irrevocably appoints Lessor as Lessee's attorney-in-fact to make, execute,
acknowledge and deliver any such instruments in the name and on behalf of Lessee, or to
subordinate any such mortgage, deed of trust, indenture or other encumbrance, such person may
elect to continue this Lease in full force and effect in the same manner and with like effect as if such
person had been named as Lessor herein, and in the event of such election, this Lease shall continue
in full force and effect, as aforesaid and Lessee hereby attorns and agrees to attorn to such person.
At any time and from time to time, upon request in writing from Lessor, Lessee agrees to
execute, acknowledge and deliver to Lessor a statement in writing certifying that this Lease is
unmodified and in full force and effect (or if there have been modifications that the same is in full
force and effect as modified and stating the modifications) and the dates to which fixed minimum
rent, additional rent, percentage rent and other charges have been paid. It is understood and agreed
that any such statement may be relied upon by any prospective purchaser of the leasehold or the
mortgagee, beneficiary or grantee of any security or interest, or any assignee of any thereof, under
any mortgage or deed of trust now or hereafter made covering any leasehold interest in the leased
premises or the real property covered by this Lease.
It is understood and agreed that Lessor may he required to obtain financing in connection
with the purchase, construction and / or operation of the shopping center and the lender or lenders
providing such financing may require modifications or amendments to this Lease. In the event
Lessee does not agree to such amendments or modifications of this Lease, may be required by such
lender or lenders a condition to providing such financing, then in either of these event Lessor may
cancel this Lease on 30 days written notice to Lessee without liability to either party.
Lessee agrees to furnish such financial statements, balance sheets or operating statements as
may be required and which Lessor is authorized to use or furnish to any lender or lenders. Any
financial statements submitted to Lessor by Lessee prior to or after execution of this Lease are
warranted by Lessee to be true and correct.
If during the term of this Lease, Lessor sells, assigns, subleases or otherwise transfers or
conveys it interest in the leased premises, or this Lease, or all or any portion of the shopping center,
then all rights and obligations of Lessee hereunder, shall remain in full force and effect as though
there had been no such sale, transfer, assignment or sublease. Upon such transfer and conveyance
Lessor shall be unconditionally absolved and released of all obligations of Lessor accruing
hereunder from the date of such sale or transfer.
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VISTA BEACH/SLATER CENTRE LEASE
This Lease, or a short form thereof shall not be recorded without the prior written consent of
Lessor and if Lessor so requests, Lessee agrees to execute and deliver a short form of this Lease for
recordation.
TrL. Q'RT^ -TLJI"O—ZTl—GTCSeSRit Tshall be brought ferthis ea
Lease, se
jr-
due.under-the Previsions of this
the paft of Lessee te be kept er- or beeai of the br-eaeh of any oevenant herein e-entaintOd- An
ney's fee whieh shall be fixed by the ,
shall be deemed to have aeer-ued on the eemmeneement of sueh aefien and shall be paid whether e+
23. NOTICES. Whenever under this Lease a provision is made for any demand, notice or
declaration of any kind or where it is deemed desirable or necessary by either party to give or serve
any such notice, demand or declaration to the other it shall be in writing delivered personally or by
certified mail with postage prepaid addressed to Lessee or to Lessor at the address appearing
opposite their signatures at the end of this Lease. Either party may, by like notice, at any time and
from time to time designate a different address or a different person to whom or in care of who
notices shall be sent. Notices delivered by mail shall be deemed delivered 48 hours after deposit
thereof in a U.S. Mail Post Box located in California, postage prepaid and addressed as required
herein. Lessee shall post in a conspicuous place on the front of leased premises an emergency
telephone number where Lessee may be reached after business hours.
24. SECURITY DEPOSIT. Lessee, contemporaneously with the execution of this Lease,
has deposited with Lessor the sum of Two Thousand Six Hundred Dollars ($2,600.00), plus the
first months rent in the amount of Two Thousand Sig Hundred Dollars ($2,600.00), receipt of
which is hereby acknowledged by Lessor. Said deposit shall be held by Lessor,without interest, and
deposited with other funds of Lessor, security for the faithful performance by Lessee of all of the
terms, covenants, and conditions of this Lease by Lessee to be kept and performed during the term
hereof. The first months rent shall be kept as security under this article until store opens for business
then be applied against rent due.
In the event of the failure of Lessee to keep and perform any of the terms, covenants and
conditions of this Lease to be kept and performed by Lessee then Lessor, at its option may, with or
without terminating this Lease appropriate and apply said entire deposit, or so much thereof as may
be necessary, to compensate Lessor for all loss or damage sustained or suffered by Lessor due to
such breach on the part of Lessee. Should the entire deposit, or any portion thereof be appropriated
and applied by Lessor for the payment of overdue rent or other sums due and payable to Lessor by
Lessee hereunder,then Lessee shall,upon the written demand of Lessor,forthwith remit to Lessor in
cash an amount sufficient to restore said security to the original sum deposited, and Lessee's failure
to do so within 10 days after receipt of such demand shall constitute a breach of this Lease. Should
Lessee comply with all of said terms, covenants and conditions and promptly pay all the rental
herein provided for as it falls due, and all other sums payable by Lessee to Lessor hereunder, the
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VISTA BEACH/SLATER CENTRE LEASE
deposit or so much thereof a may remain,shall be returned in full to Lessee at the end of the term of
this Lease, or upon the earlier termination of this Lease.
25. CONSTRUCTION OF LEASED PREMISES. Lessor shall complete, at it own
expense,the work designated as "Lessor's Construction"on Exhibit"C"attached hereto and made a
part hereof. All other work of any character, whether performed by Lessor or Lessee shall be at
Lessee's sole expense including, without limitation, work designated as "Lessee's Construction"
and "Lessor's Optional Construction"on Exhibit"C". All work to be performed by either party shall
be done in accordance with plans and specifications to be approved by Lessor and in accordance
with all applicable building codes and regulations governing said construction and in accordance
with Exhibit"C"and same shall become the property of Lessor upon termination of this Lease.
Upon execution of this Lease, Lessee will have prepared at its expense plans and
specifications for the work designated as "Lessee's Work" and "Lessor's Optional Work" and shall
deliver a full set of plans to Lessor within 30 days following notice from Lessor that said plans are
required. Lessor shall have the right to approve,disapprove or require modification of said plans and
specifications which changes shall be made by Lessee and revised plans submitted promptly to
Lessor for approval. The foregoing procedure shall be followed until a satisfactory set of plans and
specifications have been prepared. The interior design of the leased premises shall be consistent with
the overall theme and design of the shopping center.
Lessor shall perform for Lessee such of"Lessor's Optional Work"as Lessor elect to perform
and Lessee shall perform the remainder thereof. In any event, such work shall be at Lessee's sole
expense.
Any changes in the work described in Exhibit "C" or the plans and specifications requested
by Lessee or required by any Governmental authority shall be at Lessee's sole expense. Lessee shall
pay Lessor any cost,which Lessee is required to pay pursuant to this article within 5 day's following
Lessor's periodic billings therefore. No changes in the work described in Exhibit "C" shall be valid
unless they are approved by Lessor in writing.
In order to expedite the commencement of Lessee's business in the leased premises, Lessee,
upon receipt of notice from Lessor that Lessee may enter to perform its work, may enter upon the
leased premises for the purpose of performing "Lessee's Work" and installing trade fixtures and
furnishings during the construction period; provided, however, that such activity on the part of
Lessee shall be done only in such manner as not to interfere with Lessor's construction and Lessor
shall not be liable to Lessee for damages to or Ioss of such fixtures,equipment or furnishings. Lessee
agrees to comply with any union labor provisions of any Contractor's Agreement made with Lessor.
Lessee agrees to promptly after notice commence and diligently prosecute its work to completion so
that Lessee's business will be ready to open as soon as possible.
In the event Lessee shall not have completed it construction at the time any other shops in the
shopping center are ready to open, Lessee shall temporarily enclose and paint its store front to a
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VISTA BEACH/SLATER CENTRE LEASE
minimum height of 10 feet and any material or construction deliveries shall be made through the rear
entrance.
26.
-d ef at least 0 ef the tenants at any time eper-ating business establishment inAe- sherpPring
promptly to > >
an aefive member- in 98E)d standing of
o pt n a el Meer-basis.
27. DEVELOPMENT OF SHOPPING CENTER. It is expressly understood and agreed
that Lessor may at it sole option and without Lessee's consent (1) (but shall not be obligated to),
develop that portion of the shopping center situated outside of the area outlined in red on Exhibit
"A"; (2) Increase the size of the shopping center by addition of contiguous property, or decrease the
size of the shopping center or modify Exhibit"A"by adding,deleting or changing the building areas,
common area,parking layout. Ingress or egress of the shopping center; in any of which event.Lessor
shall deliver to Lessee revised Exhibit "A" and "B" which shall be substituted in and automatically
become part of this Lease; (3) Vary the plan, location or dimensions of the leased premises at any
time prior to the time Lessee commences its construction pursuant to Paragraph 25,provided that the
approximate size and general location of the leased premises will not be changed without Lessee's
consent, and provided further that if a material change of location or dimensions of the leased
premises is requested by Lessor and Lessee does not consent to such change then Lessor may, at its
option,terminate this Lease;(4)Build additional stories on any building or buildings in the shopping
center and construct double-deck, subterranean, or elevated parking facilities. Lessor makes no
warranty or representation whatever regarding the names or character of businesses to be conducted
or the size or location of any spec.to be occupied by any tenant of the shopping center. The building
use designation, if any, set forth on Exhibit"A" is for convenience only,and is not to be construed as
a representation that the proposed building will be put to such use; and Lessee does not rely on any
such representation in entering into this Lease.
28. MISCELLANEOUS. Lessor and its agent shall have free access to the leased premises
during all reasonable hours for the purpose of examining the same and to ascertain if Lessee is in
compliance with the terms of this Lease, to exhibit the same to prospective purchasers or tenants
pursuant to this Lease and to post such notices as may be desirable or necessary in Lessor's sole
judgment.
Lessor shall have the right to designate any five named individuals who may purchase from
Lessee any product or services sold by Lessee at Lessee's cost plus ten per cent.
As used in this Lease and whenever required by the context thereof, each number, both
singular and plural, shall include all numbers, and each gender shall include all genders. Lessor and
PAGE 20 OF 23
328
VISTA BEACH/SLATER CENTRE LEASE
Lessee as used in this Lease or in any other instrument referred to in or made a part of this Lease shall
likewise include both the singular and the plural,a corporation, co-.partnership, individual or person
acting in any fiduciary capacity as executor, administrator, trustee, or in any other representative
capacity. All covenants herein contained on the part of Lessee shall be joint and several.
All of the terms hereof shell apply to,run in favor of and shall be binding upon arid inure to
the benefit of, as the case may require, the parties hereto, and also their respective heirs, executors,
administrators, personal representatives and assigns and successors in interest, subject at all times
nevertheless to the provisions of Paragraph 16 of this Lease relating to restrictions upon assignment
or subletting this Lease or the Leased premises.
One or more waivers of any covenant,term or condition of this Lease by either party shall not
be construed by the other party as a waiver of a subsequent breach of the same or any other covenant,
term or condition. The consent or approval of either party to or of any act by the other party of a
nature requiring consent or approval shall not be deemed to waive or render unnecessary consent to
or approval of any subsequent act.
Nothing contained in this Lease shall be deemed or construed by the parties hereto or by any
third party to create the relationship of principal and agent or of partnership or of joint venture or of
any association whatsoever between Lessor and Lessee, it being expressly understood and agreed
that neither the method of computation of rent nor any other provisions contained in this Lease nor
any act or act of the parties hereto shall be deemed to create any relationship between Lessor and
Lessee other than the relationship of landlord and tenant.
The laws of the State of California shall govern the validity, construction, performance and
enforcement of this Lease.
Each of the parties represents and warrant that it has engaged no broker or finder and that no
claims for brokerage commissions or finder's fees will arise in connection with the execution of this
Lease and each of the parties agrees to indemnify the other against, hold it harmless from, all
liabilities arising from any such claim (including, without limitation, the cost of attorney's fees in
connection therewith).
The submission of this Lease for examination does not constitute a reservation of or option
for the leased premises and this Lease becomes effective as a Lease only upon execution thereof by
Lessor and Lessee.
It is understood that there are no oral agreement between the parties affecting this Lease and
this Lease supersedes and cancels any and all previous negotiations, arrangements, brochures,
agreements, representations, and understanding, if any, between the parties hereto or displayed by
Lessor to Lessee with respect to the subject matter thereof and none thereof shall be used to interpret
or construe this Lease.
PAGE 21 OF 23
329
VISTA BEACH/SLATER CENTRE LEASE
If a corporation executes this Lease as a Lessee, Lessee shall promptly furnish Lessor
certified corporate resolutions attesting to the authority of the officers to execute the Lease on behalf
of such corporation.
The Paragraph titles herein are for convenience only and do not define, limit or construe the
contents of such Paragraphs,
Lessee hereby grants to Lessor such licenses or easements in, under or over the leased
premises or any portion or portions thereof as shall be reasonably required for the installation or
maintenance of mains, conduits, pipes or other facilities to serve the shopping center or any part
thereof, including but not by way of limitation the premises of any occupant.
It is specifically understood and agreed that this lease is subject to conditions, covenants,
restrictions,grants of easement and/or restrictions and easement agreements and any master leases if
Lessors are master Lessees and not fee owners.
in the event the Lessee shall hold ever- the leased pfemises afler the expirAien of the ter-ffi
hereof with the eensent of the Lesser either-expfess er-implied,sueh helding ever shall be eenstmed
her-eef and the Lessee hereby agrees to pa-y the Lesser-the same f enials provided feF by this Lease fer
sueh additional tifnes as Lessee shall hold sueh pfepet4y,or Lesser-Fflay 64 its sole dis
said Fentals te an amount equal te !50,04e of that set fefth in AFtiele 4.
(Signature Page Follows)
PAGE 22 OF 23
330
VISTA BEACH/SLATER CENTRE LEASE
IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the day and year first
above written.
LESSOR'S BUSINESS ADDRESS: 11oL''ESSOR
Cl�zpv`—
17473 Beach Blvd
Huntington Beach, CA 92647
LESSEE'S BUSINESS ADDRESS: LESSE
2 0 OD m m 13 T-P-� --T
Mayor
City Clerk S12g122
LESSEE'S HOME ADDRESS: HOME PHONE
OFFICE PHONE
APPROVFD t,"
MIC AEL ': 7 ES
CITY ATTORNEY
CITY OF HUNTINGTON BEACH
PAGE 23 OF 23
Su 'ry City of Huntington Beach
2000 Main Street
Hw a Huntington Beach, California 92648
Certificate of Self Insurance
Memorandum Number: FY 21/22, No. 041
This evidence of coverage is used as a matter of information only and confers no rights upon the
Certificate Holder. This evidence of coverage does not amend, extend or alter the coverage
afforded by the memoranda listed below.
Certificate Holder: Phan Property Management, 17477 Beach Blvd., Huntington Beach, CA
92647
Coverage Effective: 06/06/22 Coverage Expires: 06/30/22
This is to certify that the City of Huntington Beach is self-insured for general liability claims.
Sufficient cash reserves to afford coverage for uninsured losses are maintained at $ 1,000,000.
Type of Coverage: General Liability, Comprehensive Auto Liability, Employer's Liability,
Workers' Compensation Coverage
Limit of Liability/Coverage: $ 1,000,000 Combined Single Limit per Occurrence
Certificate Requested By: Kristin Miller, Police Department
Description of Operation, Vehicle or Property: This certificate is issued to and additonally insures
the Certificate Holder, its agents, officers, representatives and employees as proof of the City of
Huntington Beach's self-insurance status in conjuction with the Vista Beach &Slater Center lease
between the Phan Property Management and the Huntington Beach Police Department. It is
provided to Kristin Miller of the City of Huntington Beach Police Department at 2000 Main
Street, Huntington Beach, CA (92648).
Should any of the above coverage for the Covered Party be changed or withdrawn prior to the
expiration date issued above, the City of Huntington Beach will mail a 30-day written notice to
the Certificate Holder but, failure to mail such notice shall impose no obligation or liability of any
kind upon the City of Huntington Beach, its agents, officers or employees. If you have any
questions, contact:
DeAnna Soria, Risk Manager
(714) 536-5519
Authorized Representative: �--
PHAN PROPERTY MANAGEMENT
1209 E.71h Street, Long Beach, CA 90813
562-218-7601 (office) 562-218-7609(fax)
April 7, 2022
Attention: Captain Svendbo
Huntington Beach Police
2000 Main Street
Huntington Beach, CA 92648
SUBJECT: 17477 Beach Blvd., Huntington Beach
Dear Mr. Svendbo:
My name is Julieanne Phan, property owner of Vista Centre in Huntington Beach. We
are writing this letter in regard to your Huntington Beach sub-station office space.
Due to financial hardship from Covid-19 and on-site security guard expense at Vista
Centre, we can no longer offer complimentary rent to your sub-station office space.
Effective June 1, 2022, sub-station office space will be rented at $2,600.00/month
(1,030sf x $2.52/sf) if you choose to continue your operation. If you do not wish to
operate the current office space, you can terminate with written 30-days accordingly.
Should you have any questions, please do not hesitate to contact me at 714-655-1434
or phanpropertymgmt@gmail.com.
Thank you for your cooperation.
Regards,
t "
Julieanne Phan, Owner
332
' .• City of Huntington Beach
r 2000 Main Street ♦ Huntington Beach, CA 92648
(714) 536-5227 ♦ www.huntingtonbeachca.gov
r �
e•17,19D9P• �
Office of the City Clerk
Robin Estanislau, City Clerk
May 24, 2022
Phan Property Management
17473 Beach Blvd
Huntington Beach, CA 92647
Dear Mr. Phan:
Enclosed is a fully executed copy of the Vista Beach & Slater Centre Lease approved
by City Council on May 17, 2022.
Sincerely,
Robin Estanislau, CMC
City Clerk
RE:ds
Enclosure
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