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HomeMy WebLinkAboutMINUTES - 01122010 - C.29RECOMMENDATION(S): APPROVE and AUTHORIZE the Director of Airports, or designee, to EXECUTE, on behalf of the County, a Lease Termination Agreement between the County, as landlord, and the JR Leasing, Inc., for 5400 Marsh Drive, Buchanan Field Airport. Concord Area FISCAL IMPACT: There is no fiscal impact on the General Fund. BACKGROUND: The County and JR Leasing, Inc. are parties to a lease dated December 20, 1994 under which JR Leasing has leased the property located at 5400 Marsh Drive in Concord, California (the “Lease”). Under its terms, the Lease will terminate on March 31, 2012. JR Leasing has conducted the sale of used cars from the site. Due to the adverse economic impacts on car companies, JR Leasing, Inc. has had two years of significant financial loss and is no longer able to stay in business. As a result, JR Leasing, Inc. closed their business in November 2009 and then asked the County to terminate the Lease effective December 1, 2009. In consideration for early lease termination, JR Leasing, Inc. has offered to assign the two commercial modular units located on the site, and all contents of those units, to the County in accordance with the attached Bill of Sale. By agreeing to the early termination of the Lease, the County will be able to proceed to identify other potential lessees of the site and to enter into a replacement lease. APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 01/12/2010 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYES 5 NOES ____ ABSENT ____ ABSTAIN ____ RECUSE ____ Contact: Beth Lee (925) 646-5722 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: January 12, 2010 David J. Twa, County Administrator and Clerk of the Board of Supervisors By: EMY L. SHARP, Deputy cc: C. 29 To:Board of Supervisors From:Keith Freitas, Airports Director Date:January 12, 2010 Contra Costa County Subject:APPROVE AND AUTHORIZE LEASE TERMINATION AGREEMENT BILL OF SALE J R Leasing, Inc., a California corporation (“Seller”), in the County of Contra Costa, State of California, for adequate consideration, receipt of which is acknowledged, received from the County of Contra Costa (“Buyer”) does hereby sell, transfer and assign to Buyer the following: Two commercial modular units located at 5400 Marsh Drive, Concord, California (Serial Nos. 88115368 and MSWP286572), and all contents of the commercial modular units, including desks, chairs, a table, a refrigerator, and a photocopier (together, the “Purchased Assets”). Seller hereby covenants with Buyer that it is the lawful owner of the Purchased Assets, that the Purchased Assets are free from all encumbrances, that it has good right to sell, transfer, and assign the same, and that it will warrant and defend the same against the lawful claims and demands of all persons. J R Leasing, Inc. By: _____________________ Rawland R. Graybehl President Date: ________________ BILL OF SALE J R Leasing, Inc., a California corporation (“Seller”), in the County of Contra Costa, State of California, for adequate consideration, receipt of which is acknowledged, received from the County of Contra Costa (“Buyer”) does hereby sell, transfer and assign to Buyer the following: Two commercial modular units located at 5400 Marsh Drive, Concord, California (Serial Nos. 88115368 and MSWP286572), and all contents of the commercial modular units, including desks, chairs, a table, a refrigerator, and a photocopier (together, the “Purchased Assets”). Seller hereby covenants with Buyer that it is the lawful owner of the Purchased Assets, that the Purchased Assets are free from all encumbrances, that it has good right to sell, transfer, and assign the same, and that it will warrant and defend the same against the lawful claims and demands of all persons. J R Leasing, Inc. By: _____________________ Rawland R. Graybehl President Date: ________________ 1 LEASE TERMINATION AGREEMENT This agreement is dated ______________, 2010 and is between JR Leasing, Inc., a California corporation (the “Tenant”) and the County of Contra Costa, a political subdivision of the State of California (the “County”). RECITALS A. Tenant and County are parties to a lease dated December 20, 1994 (the “Lease”). Under the Lease, County leased to Tenant a parcel of land near and to the north of the Buchanan Field Airport in Concord, California for non-aviation commercial development (the “Premises”). B. By its terms, the Lease will terminate March 31, 2012. C. Tenant has requested that County agree to terminate the Lease effective December 1, 2009. Upon the satisfaction of the conditions set forth herein, County has agreed to permit the early termination of the Lease. The parties therefore agree as follows: AGREEMENT 1. All terms used but not defined herein have the definitions ascribed to them in the Lease. 2. The last day of the Lease is December 1, 2009. 3. Tenant hereby forfeits its Security Deposit. 4. Tenant hereby assigns all of its rights, title and interest in any Improvements, including all buildings and structures on the Premises, to County, free and clear of any encumbrances. 5. In accordance with a bill of sale being executed simultaneously with this agreement, Tenant shall convey all personal property located on the Premises, including the commercial modular units with serial numbers 88115368 and MSWP286572 (the “Modular Units”), along with the contents of the Modular Units, to County, free and clear of any encumbrances. In conjunction with the transfer of the Modular Units, Tenant shall execute and deliver to County all documents required by the State of California – Department of Housing and Community Development. 6. Tenant warrants it has provided County with the keys to all buildings and structures on the Premises. 2 7. This agreement contains the entire agreement between the parties with respect to its subject matter and supersedes all prior agreements between the parties, whether oral or written. 8. This agreement binds and inures to the benefit of the parties and their respective successors and assigns. The parties are signing this agreement as of the date stated in the introductory clause. TENANT COUNTY J R LEASING, INC., a COUNTY OF CONTRA COSTA, a California corporation political subdivision of the State of California By_______________________ By_______________________ Rawland R. Graybehl Keith Freitas President Director of Airports 1 LEASE TERMINATION AGREEMENT This agreement is dated ______________, 2010 and is between JR Leasing, Inc., a California corporation (the “Tenant”) and the County of Contra Costa, a political subdivision of the State of California (the “County”). RECITALS A. Tenant and County are parties to a lease dated December 20, 1994 (the “Lease”). Under the Lease, County leased to Tenant a parcel of land near and to the north of the Buchanan Field Airport in Concord, California for non-aviation commercial development (the “Premises”). B. By its terms, the Lease will terminate March 31, 2012. C. Tenant has requested that County agree to terminate the Lease effective December 1, 2009. Upon the satisfaction of the conditions set forth herein, County has agreed to permit the early termination of the Lease. The parties therefore agree as follows: AGREEMENT 1. All terms used but not defined herein have the definitions ascribed to them in the Lease. 2. The last day of the Lease is December 1, 2009. 3. Tenant hereby forfeits its Security Deposit. 4. Tenant hereby assigns all of its rights, title and interest in any Improvements, including all buildings and structures on the Premises, to County, free and clear of any encumbrances. 5. In accordance with a bill of sale being executed simultaneously with this agreement, Tenant shall convey all personal property located on the Premises, including the commercial modular units with serial numbers 88115368 and MSWP286572 (the “Modular Units”), along with the contents of the Modular Units, to County, free and clear of any encumbrances. In conjunction with the transfer of the Modular Units, Tenant shall execute and deliver to County all documents required by the State of California – Department of Housing and Community Development. 6. Tenant warrants it has provided County with the keys to all buildings and structures on the Premises. 2 7. This agreement contains the entire agreement between the parties with respect to its subject matter and supersedes all prior agreements between the parties, whether oral or written. 8. This agreement binds and inures to the benefit of the parties and their respective successors and assigns. The parties are signing this agreement as of the date stated in the introductory clause. TENANT COUNTY J R LEASING, INC., a COUNTY OF CONTRA COSTA, a California corporation political subdivision of the State of California By_______________________ By_______________________ Rawland R. Graybehl Keith Freitas President Director of Airports