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Home My WebLink AboutG- 10 Commercial Property Gowan's Palm Nursery //:(...-0--!,0 r' o 44 fil * , ,,, 1City The of Azusa ___", i Nicoll ' February 11, 1997 TO: Honorable Mayor & Members of the City Council FROM: Joseph F. Hsu, Director of Utilities VIA: Henry Garcia, City Administrator RE: Commercial Property Lease Gowan's Palm Nursery AGENDA ITEM BACKGROUND The Water Division has been working on a program to clean up and maintain its many properties throughout the communities we serve. One of said properties, the Grandview Well Site, is located between the commercial area along Azusa Avenue and the residential area along Angeleno. The property is approximately two acres. This land is very important to the water utility in that under ground on the site is a large transmission main and a standby water well. In past years the property has been leased by the Church on Azusa Avenue for play areas for their day care center. The Church no longer operates a day care center and no longer wishes to lease said property. Presently, the property is flat, hard to maintain, dirt and seasonal weeds. It is surrounded by a new fence, however, without a major expenditure nothing else can be done to make the area aesthetically pleasing. Early this year the Water Division began exploring the opportunity of working with a plant nursery. The concerns being; aesthetics, temporary/compatible usage, reduced maintenance costs to the operation, and equitable arrangements for both parties. The Water Division made several inquiries and was able to negotiate a good deal with Gowan's Palm Nursery. The City has a good deal that improves our property at no cost, the Nursery has a fair lease, and the Community has a well landscaped area to view and appreciate. The City Attorney has reviewed and approved the Lease as to form. RECOMMENDATION I recommend City Council approve the Commercial Lease as presented and direct the Mayor and City Clerk to execute same. d)12#(2X- °9447 4 COMMERCIAL LEASE THIS LEASE is made on the eighteenth day of February 1997. The City of Azusa,hereinafter referred to as CITY,agrees to lease to Tye Gowan,dba:Gowan's Palm Nursery, hereinafter referred to as TENANT,and the TENANT hereby agrees to hire and take from the CITY,the Leased Premises described below pursuant to the terms and conditions specified herein: 1. LANDLORD: City of Azusa TENANT: Tye Gowan 729 N.Azusa Avenue Gowan's Palm Nursery Azusa,California 91702 9640 Birmingham Drive Riverside,California 92509 LEASED PREMISES: Unimproved Open Spaces at Grandview Drive&Paramount Street; Azusa,California. Approximately 2 acres. 2. TERM. The term of the Lease shall be for a period of five years commencing on the 1st day of April 1997 ending on the thirty-first day of December 2002 unless terminated sooner as hereinafter provided. At the end of this initial term, this lease maybe extended for such additional periods as are mutually agreeable, provided however,that nothing herein shall obligate TENANT or CITY to extend such term. The decision to extend such term shall be at the reasonable discretion of the TENANT and the CITY. 3. RENT. The TENANT agrees to pay the ANNUAL RENT of twelve hundred Dollars($1,200.00)[prorated in the sum of$800.00 for the year 1997],and thereafter no later than January 15 of each of the following years of the term of the Lease. 4. DELIVERY AND POSSESSION. If for any reason the CITY cannot deliver possession of the leased property to the TENANT when the lease term commences,this Lease shall not be void or voidable,nor shall the CITY be liable to the TENANT for any loss or damage resulting therefrom. However,there shall be an abatement of rent for the period between the commencement of the lease term and the time when the CITY delivers possession. 5. UTILITIES. The TENANT shall be responsible for all utilities and services that are furnished to the Leased Premises. The application for and connecting of utilities,as well as services,shall be made by and only in the name of the TENANT: 6. CONDITION OF LEASED PREMISES;MAINTENANCE AND REPAIR. The 1 ENANT acknowledges the unimproved condition of the leased Premises. The TENANT agrees to take good care of an maintain the Leased Premises in good condition throughout the term of the Lease. The TENANT, at his expense,shall make all necessary repairs,replacements and improvements to the Leased Premises,including pipes,electrical wiring, heating and plumbing systems,fixtures and all other systems and appliances and their appurtenances. The quality and class of all repairs,replacements and improvements shall be equal to original worth,within current building codes and standards. If the TENANT defaults in making said repairs or replacements,CITY may make them for the TENANT'S account,and such expense will be considered additional rent. 7. COMPLIANCE WITH LAWS AND REGULATIONS. TENANT,at its expense,shall promptly comply with all federal,state,and municipal laws,orders,and regulations and with all lawful directives of public officers, which impose any duty upon it or CITY with respect to the Leased Premises. The TENANT at its expense,shall obtain all required licenses or permits for the conduct of its business within the terms of this lease,or for the making of repairs,alterations,improvements,or additions. CITY,when necessary,will join with the TENANT in applying for all such permits or licenses. 8. ALTERATIONS AND IMPROVEMENTS. TENANT shall not make any alterations, additions, or improvements to,or install any fixtures on,the Leased Premises without CITY'S prior written consent. If such consent is given,all alterations,additions,and improvements made,and fixtures installed,by TENANT,shall remain TENANT'S property upon the expiration or sooner termination of this Lease. CITY will,however,require TENANT to remove such fixtures,at TENANT'S cost,upon the termination hereof. 9. ASSIGNMENT/SUBLETTING RESTRICTIONS. TENANT may not assign this agreement or sublet the I eased Premises without the prior written consent of the CITY,which may be given or withheld in the CITY'S sole and absolute digression. Any assignment,sublease or other purported license to use the Leased Premises by TENANT without the CI I Y'S consent shall be void and shall(at CITY'S option)terminate this Lease. 10. INSURANCE.TENANT shall,at its expense,during the term hereof,maintain and deliver to the CITY public liability, worker's compensation and property damage insurance policies with respect to the 1 eased Premises. Such policies shall name the CITY and TENAN f as insured,and have limits of at least one million dollars($1,000,000.00)for injury or death to any one person and one million dollars($1,000,000.00)for any one accident,and one million dollars($1,000,000.00)with respect to property damage. Such policies shall be in whatever form and with such insurance companies as are reasonably satisfactory to the CITY,shall name CITY as additional insured,and shall provide for at least thirty days'prior notice to the CITY of cancellation. 11. INDEMNIFICATION OF CITY. TENANT shall defend,indemnify,and hold CITY harmless from and against any claim,loss,expense or damage to any person or property in or upon the Leased Premises,arising out of TENANT'S use or occupancy of the Leased Premises,or arising out of any act or neglect of TENANT or its servants,employees,agents,or invitees. 12. DESTRUCTION OF PREMISES. If the property of the Leased Premises is damaged by fire or casualty, without TENANT'S fault,and damage is so extensive as to effectively constitute a total destruction of the property, this Lease shall terminate and rent shall be apportioned to the time of the damage. In all other cases of damage TENANT shall repair the damage with reasonable dispatch,and use his own funds or insurance proceeds for said repairs. 13. CITY'S RIGHTS UPON DEFAULT. In the event of any breach of this lease by the TENANT,which shall not have been cured within TEN(10)DAYS,then the CITY,besides other rights or remedies it may have shall have immediate right of reentry and may remove persons and property from the Leased Premises;such property may be removed and stored in a public warehouse or elsewhere at the cost of, and for the account of, the TENANT. If the CITY elects to reenter as herein provided,or should it take possession pursuant to any notice provided by law,it may either terminate the Lease or may,from time to time,without terminating the lease,relet the Leased Premise or any part thereof,for such term or terms and such rental or rentals and upon such other terms and conditions as the CITY in CITY'S own discretion may deem advisable. Should rentals received from such reletting during any month be less than that agreed to be paid during the month the TENANT hereunder, the TENANT shall pay such deficiency to the CITY. The TENANT shall also pay to the CITY, as soon as ascertained,the cost and expenses incurred by the CITY in such reletting. 14. QUIET ENJOYMENT. The CITY agrees that if the TENANT shall pay the rent as aforesaid and perform the covenants and agreements herein contained on its part to be performed,the TENANT shall peaceably hold and enjoy the said rented premises without hindrance or interruption by the CITY or by any other person or persons acting under or through the CITY. 15. CITY'S RIGHT TO ENTER. The CITY may,at reasonable times,enter the Leased Premises to inspect it, to make repairs or alterations,and to show it to potential buyers,lenders or tenants. Following CITY'S decision to sell Leased Premises,CITY shall negotiate in good faith with TENANT concerning TENANT'S possible purchase of the Leased Premises for a period of sixty days. Nothing herein shall be deemed to grant TENANT either an "option to purchase"or a"first-right-of-refusal". 16. SURRENDER UPON TERMINATION. At the expiration of the lease the TENANT shall surrender the property in as good condition as it was in at the beginning of the term,reasonable use and wear expected. 17. SUBORDINATION. this lease, and the TENANT'S leasehold interest, is and shall be subordinate, subject and inferior to any and all liens and encumbrances now and thereafter placed on the I eased Premises by the CITY,any and all extensions of such liens and encumbrances and all advances paid under such liens and encumbrances. 18. ADDITIONAL PROVISIONS: (I)TENANT agrees to maintain the landscaping around the perimeter of the premises. (ii)TENANT agrees to install and maintain a complete irrigation system for said plant material. (iii)TENANT will ingress and egress from Highway 39 through the northern most gateway. (iv)Exhibit"A"attached hereto denotes areas described by reference within this lease. (v)TENANT will use said Leased Premise to provide temporary storage of semi large palm trees and growing stock. 19. MISCELLANEOUS TERMS. (I)Notices. Any notice,statement,demand or other communication by one party to the other,shall be given by personal delivery or by U.S.Mail,postage prepaid,addressed to the TENANT at the premises or to the CITY at the address set forth above. (ii) Severability. If any clause or provision herein shall be adjudged invalid or unenforceable by a court of competent jurisdiction or by operation of any applicable law,it shall not affect the validity of any other clause or provision,which shall remain in full force and effect. (iii) Waiver. The failure of either party to enforce any of the provisions of this lease shall not be considered a waiver of that provision or the right of the party to thereafter enforce the provision. (iv) Complete Agreement. This Lease constitutes the entire understanding of the parties with respect to the subject matter hereof and may not be modified except by an instrument in writing and signed by the parties. (v) Successors. This Lease is binding on all parties who lawfully succeed to the rights or take the place of the CITY or TENANT. (vi)Liability. TENANTS are jointly and severally liable for the performance of obligations within this Lease. • (vii)Attorneys Fees. If the CITY is required to institute any action or proceeding to recover possession of the Leased Premises,or to recover damages for TENANT breach of this Lease,the CITY shall be entitledto recover its costs of litigation and attorneys fees incurred in such act or proceeding. (viii) Taxes/ Fees. TENANT shall pay any possessionary interest taxes assessed or levied against TENANTS lease hold interest. IN WITNESS WHEREOF the parties have set their hands and seals on this day of February 1997. 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