HomeMy WebLinkAboutMINUTES - 06242003 - C.88 TO: BOARD OF SUPERVISORS �. CONTRA
FROM: BARTON J. GILBERT, DIRECTOR OF GENERAL SERVICES COSTA
DATE: JUNE 24, 2003 COUNTY
SUBJECT: RENEWAL LEASE FOR THE PREMISES AT 2366 STANIWELL ov
CIRCLE, CONCORD FOR THE GENERAL SERVICES AND
AGRICULTURE DEPARTMENTS
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION
1. APPROVE a Renewal Lease, commencing June 1, 2003, with the Holmgren Partnership for the
premises at 2366 Stanwell Circle, Concord for continued occupancy by the General Services
and Agriculture Departments, under the terms and conditions more particularly set forth in the
Lease.
2. AUTHORIZE the Director of General Services, or designee, to execute the Lease on behalf of
the County and to EXERCISE any options to extend the Lease.
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FINANCIAL IMPACT
Renewal of this lease was anticipated and budgeted in the approved FY 2002/2003 budget and the
FY 2003/04 budget. The rent from June 1, 2003 through May 31, 2004 is approximately $154,000,
based on 21,355 square feet at $.60 per square foot for office and warehouse space. The lease
payments are budgeted in the General Services and Agriculture Department budgets.
BACKGROUND
Approval of the renewal lease will provide for continued use of office and warehouse space, as
requested by the General Services and Agriculture Departments. The County has occupied the
space since 1977. The required lease payments total approximately $816,000 for the five year lease
term.
CONTINUED ON ATTACHMENT: YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
PPROVE OTHER
t
SIGNATURE(S): J2��
ACTION OF BO D ME 24, 2003 APPROVED AS RECOMMENDED X OTHER
VOT OF SUPERVISORS
UNA S
(ABSENT )
AYES: NOES:
ABSENT: ABSTAIN:
DISTRICT III SEAT VACANT
MEDIA CONTACT:BARTON J.GILBERT(313-7100)
Originating Dept.:General Services Department t HEREBY CERTIFY THAT THIS IS A TRUE
cc: General Services Department AND CORRECT COPY OF AN ACTION TAKEN
Lease Management Division AND ENTERED ON THE MINUTES OF THE BOARD
Accounting OF SUPERVISORS ON THE DATE SHOWN.
Auditor-Controller(via LIM)
Risk Management(via LIM) AT'T'ESTED_ j=_?,4. 2CX13
Agriculture Department(vie L/M) JOHN SWEETEN,CLERK OF THE BOARD OF SUPERVISORS
Holmgren Partnership(via L/M) ND jCOUNTY ADMINISTRATOR
BY DEPUTY {
- don- TH-S
1:\LeaseMgt\STEVE\2366BDO4.DOC SBV:tb Page 1 of 1 M382(10/68)
LEASE
2366 STANWELL CIRCLE
CONCORD, CALIFORNIA
CONTRA COSTA COUNTY
GENERAL SERVICES ANE► AGRICULTURE DEPARTMENTS
TABLE OF CONTENTS
SECTION A: BASIC TERMS ANIS CONDITIONS
A.l. PARTIES .......................................................................................................... 1
A.2. LEASE OF PREMISES........ .............................. ............................................ 1
A.3. TERM................................................................................................................ 1
AA. RENT ................................................................................................................ I
A.5. ADDITIONAL RENT ......................................................................................2
A.6. EXTENSION....................................................................................................2
A.7. USE OF PREMISES.........................................................................................4
A.8. UTILITIES........................................................................................................4
A9. MAINTENANCE AND REPAIRS ..................................................................4
A.10. NOTICES..........................................................................................................4
A.11. EXHIBITS AND ATTACHMENTS................................................................5
A.12. WRITTEN AGREEMENT...............................................................................5
A.13. TIME IS OF THE ESSENCE...........................................................................5
A.14. SIGNATURE BLOCK .....................................................................................6
SECTION B: STANDARD PROVISIONS
B.I. HOLDING OVER................................... .........................................................7
B.2. HOLD HARMLESS .........................................................................................7
B.3. ALTERATIONS, FIXTURES, AND SIGNS...................................................7
B.4. DESTRUCTION...............................................................................................8
B.5. QUIET ENJOYMENT......................................................................................8
B.6. DEFAULTS ......................................................................................................8
B.7. SURRENDER OF PREMISES....................................................................... 10
B.8. SUCCESSORS AND ASSIGNS .................................................................... 10
B.9. SEVERABILITY............................................................................................ 10
B.10. WASTE, NUISANCE..................................................................................... 10
B.11. INSPECTION ................................................................................................. 10
SECTION C: SPECIAL PROVISIONS
C.I. ASSIGNMENT OR SUBLEASE................................................................... 12
C.2. INSURANCE.................................................................................................. 12
C.3. SERVICE BY LESSOR.................................................................................. 13
C.4. HAZARDOUS MATERIALS........................................................................ 13
C.5. CANCELLATION.......................................................................................... 14
C.6. PROPERTY TAXES ...................................................................................... 14
C.7. RIGHT OF FIRST REFUSAL TO BUY........................................................ 15
C.8. RIGHT TO LEASE ADDITIONAL PARKING............................................ 15
C.9. TERMINATION OF PRESENT LEASE....................................................... 16
EXHIBITS
EXHIBIT A: PREMISES
EXHIBIT B: ADDITIONAL PARKING LOT
LEASE
2366 STANWELL CIRCLE
CONCORD, CALIFORNIA
FOR THE
CONTRA COSTA COUNTY
GENERAL SERVICES AND AGRICULTURE DEPARTMENTS
SECTION A: BASIC TERMS AND CONDITIONS
A.1. PARTIES: Effective on JUN 2 4 2003 THE HOLMOREN
PARTNERSHIP, hereinafter called "LESSOR", and the COUNTY OF CONTRA
COSTA, a political subdivision of the State of California, hereinafter called "COUNTY",
mutually agree and promise as follows:
A.2. LEASE OF PREMISES: LESSOR, for and in consideration of the rents, hereby
leases to COUNTY, and COUNTY leases from LESSOR those certain premises
described as follows: Parcels 13, 14 and 15 as said parcels are described on Subdivision
Tract Map 3564, Map Book 112-29 Official Records of Contra Costa County and shown
in Exhibit A --- Premises, attached hereto and made a part hereof, together with
improvements consisting of an approximately 21,355 square foot building comprised of
warehouse and office space ("Premises"). The Premises are commonly known and
designated as 2366 Stanwell Circle, Concord, California.
A.3. TERM: The term of this Lease shall be five (5) years, commencing June 1, 2003
and ending May 31, 2008.
A.4. RENT: COUNTY shall pay to LESSOR as rent for the use of the Premises a
monthly rental, payable in advance on the tenth day of each month during the term of this
Lease as follows:
1. TWELVE THOUSAND EIGHT HUNDRED FIFTEEN AND NO/100
DOLLARS ($12,815.00)per month commencing June 1, 2003 through May
31, 2004.
1
2. THIRTEEN THOUSAND ONE HUNDRED NINETY FIVE AND NO/100
DOLLARS ($13,195.00) per month commencing June 1, 2004 through May
31, 2005.
3. THIRTEEN THOUSAND FIVE HUNDRED NINETY FIVE AND
NO/100 DOLLARS ($13,595.00) per month commencing June 1, 2005
through May 31, 2006.
4. FOURTEEN THOUSAND AND NO/100 DOLLARS ($14,000.00) per
month commencing June 1, 2006 through May 31, 2007.
5. FOURTEEN THOUSAND FOUR HUNDRED TWENTY AND NO/100
DOLLARS ($14,420.00) per month commencing June 1, 2007 through May
31, 2008.
Payments shall be mailed to: The Holmgren Partnership, P. O. Box 815, St. Helena, CA
94574 or any other location as designated by LESSOR from time to time.
A.S. ADDITIONAL RENT: As part of the consideration for the lease for the
Premises dated April 21, 1992 between COUNTY and LESSOR, LESSOR agreed to and
installed a new roof required by COUNTY for the use and occupancy of the Premises.
The cost for said roof was THIRTY NINE THOUSAND EIGHT HUNDRED SIXTY
AND NOI100 DOLLARS ($39,860.00), which LESSOR amortized over a fifteen (15)
year period at nine percent (9%) interest which equaled a monthly reimbursement due to
the LESSOR of FOUR HUNDRED FIVE AND NO/100 DOLLARS ($405.00). It is
understood and agreed that COUNTY shall continue to pay as additional rent the monthly
sum of $405.00 required to fully amortize the remaining balance over the original
reimbursement period which expires October, 2007, as long as COUNTY continues to
occupy the Premises. However, COUNTY shall not be responsible for any unamortized
amount remaining at the end of COUNTYY'S occupancy of the Premises.
A.6, EXTENSION: This Lease may, at the option of the COUNTY, be extended upon
the same terms and conditions, except the rental shall be adjusted as follows:
2
a. First Option: For a two (2) year term, commencing June 1, 2008 and ending
May 31, 2010 at a monthly rental as follows:
1. FOURTEEN THOUSAND EIGHT HUNDRED FIFTY FIVE AND
NO/100 DOLLARS ($14,$55.40) per month from June 1, 2008
through May 31, 2009.
2. FIFTEEN THOUSAND THREE HUNDRED AND NO/100
DOLLARS ($15,300.00) per month from June 1, 2009 through May
31, 2010.
b. Second Option: For a two (2) year term, commencing June 1, 2010 and
ending May 31, 2012 at a monthly rental as follows:
1. FIFTEEN THOUSAND SEVEN HUNDRED SIXTY AND NO/100
DOLLARS ($15,760.00) per month from June 1, 2010 through May
31, 2011.
2. SIXTEEN THOUSAND TWO HUNDRED THIRTY AND NO/100
DOLLARS ($16,230.00) per month from. June 1, 2011 through May
31, 2012.
C. Third Option: For a two (2) year term, commencing June 1, 2012 and
ending May 31, 2014 at a monthly rental as follows:
1. SIXTEEN THOUSAND SEVEN HUNDRED TWENTY AND
N0/100 DOLLARS ($16,720.00) per month from June 1, 2012
through May 31, 2013.
2. SEVENTEEN THOUSAND TWO HUNDRED 'TWENTY AND
NO/100 DOLLARS ($17,220.00) per month from June 1, 2013
through May 31, 2014.
It is understood and agreed COUNTY shall give LESSOR thirty (30) days prior
written notice of its intention to exercise any option to extend this Lease. However, in the
event COUNTY does not give such written notice, its right to exercise any option before
3
termination of the Lease shall not expire until fifteen (15) working days after receipt of
LESSOR'S written demand to exercise or forfeit said option.
A.7. USE OF PREMISES. The Premises shall be used during the term or extension
thereof for purposes of conducting various functions of COUNTY.
A.B. UTILITIES AND JANITORIAL: COUNTY shall pay for all gas, electric,
water, sewer,janitorial and refuse collection services provided to the Premises.
A.9. MAINTENANCE AND REPAIRS:
a. COUNTY, at its sole cost and expense, shall keep and maintain the
Premises and every part thereof in good order, condition, and repair,
including, but not limited to, the roof and exterior walls, parking lot,
sprinkler system, exterior lighting system, glass and glazing, doors and their
fixtures, closers and hinges, locks and key system, and all electrical,
lighting, water, plumbing, sewer, heating, ventilating and air-conditioning
systems.
b. COUNTY shall be responsible for the correction of any code violations.
C. LESSOR shall maintain the structural integrity of the building.
d. COUNTY shall not suffer any waste on or to the Premises.
A.10. NOTICES: All notices given hereunder shall be in writing and shall be deemed to
have been given if personally delivered or deposited in the United States mail postage
prepaid, certified or registered, return receipt requested, and addressed to the other party
as follows or as otherwise designated by written notice hereunder from time to time:
To LESSOR. The Holmgren Partnership
c/o Larry Holmgren
P. 4. Box 1087
Telluride, CO 81435
To COUNTY: Contra Costa County
General Services Department
Lease Management Division
1220 Morello Avenue, Suite 100
Martinez, CA 94553-4711
4
A.11. EXHIBITS AND ATTACHMENTS: Section B, Standard Provisions, Section C,
Special Provisions, Exhibit A — Site Plan and Exhibit B — Additional Parking Lot are
attached to this Lease and are made a part hereof.
A.12. WRITTEN AGREEMENT: Neither party has relied on any promise or
representation not contained in this Lease. All previous conversations, negotiations, and
understandings are of no further force or effect. This Lease may be modified only by a
writing signed by both parties. The headings of the paragraphs and pages are for
convenience only and are not a part of this Lease, nor shall they be considered in
construing the intent of this Lease.
A.B. TIME IS OF THE ESSENCE of each and all of the terms and provisions of this
Lease.
(Remainder of page intentionally left blank.)
5
_
A.14. SIGNATURE BLOCK
COUNTY LESSOR
COUNTY OF CONTRA COSTA, a THE HI ON PARTNERSHIP
Political subdivision of the State of
California `
By _-
Stan .X gren, Jr.
By _� ,3 i
Director of General Services I
RECOMMENDED FOR APPROVAL:
By } `
Die for of Capital f acilities and
Debt Management
ByaW
Lease Manager
By _. t t
Agriculture Department R6presentative
APPROVED AS TO FORM:
SILVANO B. MARCHESI, County
Counsel
By d ,
Deputy
ay
6
LEASE
2366 STANWELL CIRCLE
CONCORD, CALIFORNIA
FOR THE
CONTRA COSTA COUNTY
GENERAL SERVICES AND AGRICULTURE DEPARTMENTS
SECTION B: STANDARD PROVISIONS
B.I. HOLDING OVER: Any holding over after the term or extension of this Lease as
provided hereinabove shall be construed to be a tenancy from month to month, subject to
the terms of this Lease so far as applicable.
B.2. HOLD HARMLESS: COUNTY agrees to defend, indemnify, and hold harmless
the LESSOR from the COUNTY'S share of any and all claims, costs and liability for any
damage, injury or death of or to any person or the property of any person arising out of
negligent or intentional acts, errors or omissions of the COUNTY, its officers, agents or
employees. COUNTY shall not be liable in the case of any structural, mechanical or
other failure of equipment and/or building owned and maintained by the LESSOR. or for
other liability which is attributable, in whole or in part, to the negligence, willful
misconduct, or other intentional act, error or omission of LESSOR, which results in
damage to any person or property.
LESSOR agrees to defend, indemnify and hold harmless the COUNTY from the
LESSOR'S share of any and all claims, costs and liability for any damages, injury or death
of any person or the property of any person arising out of the negligent or intentional acts,
errors or omissions of the LESSOR., its officers, agents or employees.
B.3. ALTERATIONS, FIXTURES, AND SIGNS: COUNTY may make any lawful
and proper minor alterations, attach fixtures and signs in or upon the Premises, which
shall remain COUNTY property and may be removed therefrom by COUNTY prior to the
termination of this Lease. Any such alterations, signs or fixtures shall be at COUNTY'S
sole cost and expense, and all signs shall meet with existing code requirements and
LESSOR'S approval.
7
B.4. DESTRUCTION:
a. In the event of damage causing a partial destruction of the Premises during
the term of this Lease or extension thereof from any cause, and repairs can
be made within sixty (60) days from the date of the damage under the
applicable laws and regulations of governmental authorities, LESSOR shall
repair the damage promptly and within a reasonable time, but such partial
destruction shall not void this Lease, except that COUNTY shall be entitled
to a proportionate reduction of rent while such repairs are being made, such
proportionate reduction to be based upon the extent to which the Premises
are unusable by COUNTY.
b. If such repairs cannot be made in sixty (60) days, LESSOR may, at its
option, make the same within a reasonable time, the rent to be
proportionately reduced as provided in the previous subparagraph. In the
event LESSOR. does not so elect to make such repairs (which cannot be
made in sixty (60) days), or such repairs cannot be made under such laws
and regulations, this Lease may be terminated at the option of either party.
C. A total destruction of the Premises shall terminate this Lease.
B.5. QUIET ENJOYMENT: LESSOR. covenants that COUNTY shall at all times
during the term of this Lease or extension thereof peaceably and quietly have, hold, and
enjoy the Premises without suit, trouble or hindrance from or on account of LESSOR as
long as COUNTY fully performs hereunder.
B.6. DEFAULTS: The occurrence of any of the following shall constitute an Event of
Default under this Agreement.
a. Event of Default by COUNTY
1. CONY'S failure to pay any Rental within ten (10) business days after
written notice of failure from LESSOR to COUNTY. If, however, payment is
not made within ten (10) business days of said written notice due to
circumstances beyond the reasonable control of COUNTY, which
8
circumstances may, without limitation hereby, include failure of COUNTY to
adopt a budget, then COUNTY shall make such payment within such
additional time [but not to exceed a total of seventy five (75) days from
LESSOR'S notice to COUNTY.]
2. COUNTY'S failure to comply with any other material term or provision of this
Lease if such failure continues thirty (30) days after written notice of failure
from LESSOR to COUNTY specifying in reasonably sufficient detail the
nature of said breach. If the required cure of the noticed default cannot be
completed within thirty (30) days, COUNTY'S failure to perform shall
constitute a default under the Lease unless COUNTY has attempted to cure the
default within said thirty (30) day period and has diligently and continuously
attempted to complete the cure as soon as reasonably possible.
On the occurrence of an Event of Default by COUNTY, LESSOR may reenter and
repossess the Premises and remove all persons and property therefrom after giving
COUNTY written notice of such default and in accordance with due process of law.
b. Event of Default by LESSOR
LESSOR'S failure to perform any of its obligations under this Lease shall
constitute a default by LESSOR if the failure continues for thirty (30) days after
written notice of the failure from COUNTY to LESSOR. If the required cure of
the noticed default cannot be completed within thirty (30) days, LESSOR'S failure
to perform shall constitute a default under the Lease unless LESSOR has attempted
to cure the default within said thirty (30) day period and has diligently and
continuously attempted to complete the cure as soon as reasonably possible.
Notwithstanding the foregoing, in the event of a situation creating a
perilous condition on the Premises which substantially and significantly threatens
the health and safety of COUNTY and/or its invitees, LESSOR shall use
reasonable efforts to immediately address the situation and shall use diligent
efforts to correct the perilous condition.
9
On the occurrence of an Event of Default by LESSOR, COUNTY may terminate this
Lease and quit the Premises without further cost or obligation or may proceed to repair or
correct the failure and either deduct the cost thereof from rental payments due to
LESSOR, or at COUNTY'S option, invoice LESSOR for the cost of repair, which
invoice LESSOR shall pay promptly upon receipt.
B.7. SURRENDER OF PREMISES: On the last day of the term., or sooner
termination of this Lease, COUNTY will peaceably and quietly leave and surrender to
LESSOR these Premises with their appurtenances and fixtures (except signs and fixtures
referred to hereinabove) in good order, condition, and repair, excepting for reasonable use
and wear thereof and damage by earthquake, fire, public calamity, by the elements, by Act
of God, or by circumstances over which COUNTY has no control. COUNTY shall not be
liable for painting the interior of the Premises upon termination of this Lease.
B.8. SUCCESSORS ANIS ASSIGNS: The terms and provisions of this Lease shall
extend to and be binding upon and inure to the benefit of the heirs, successors, and
assigns of the respective parties hereto.
B.9. SEVERABILITY: In the event that any provision herein contained is held to be
invalid by any court of competent jurisdiction, the invalidity of any such provision does
not materially prejudice either the COUNTY or LESSOR. in its respective rights and
obligations contained in the valid provisions of this Lease.
B.10. WASTE, NUISANCE: COUNTY shall not commit, or suffer to be committed,
any waste upon the Premises, or any nuisance or other act or thing which may disturb the
quiet enjoyment of any other occupant of the industrial park in which the Premises are
located.
COUNTY shall conform its use and occupancy of the Premises to the standards
and modes of use applicable to a first-class warehouse and office building.
B.11. INSPECTION: The LESSON. reserves the right to enter the Premises by prior
appointment only between the hours of 9:00 a.m. and 4:30 p.m., Monday through Friday,
holidays excepted, and to employ the proper representative or contractor in order to see
10
that the property is being reasonably cared for, that no waste is being made, and that all
things are done in the manner best calculated for the preservation of the property, and in
full compliance with the terms and conditions of this Lease.
(Remainder of page intentionally left blank)
11
LEASE
2366 STANWELL CIRCLE
CONCORDS CALIFORNIA
FOR THE
CONTRA COSTA COUNTY
GENERAL SERVICES AND AGRICULTURE DEPARTMENTS
SECTION C: SPECIAL PROVISIONS
C.1. ASSIGNMENT OR SUBLEASE: COUNTY shall not have the right to assign
this Lease or sublease the Premises or any part thereof at any time during the term of this
Lease or extension thereof without the written consent of LESSOR, which shall not be
unreasonably withheld.
C.2. INSURANCE:
a. Throughout the term of this Lease and any extension thereof, COUNTY, at
its sole cost and expense, shall maintain for its benefit, as well as for the
LESSOR, a general self-insurance program covering bodily injury
(including death), personal injury, property damage including loss of use
and insurance against loss or damage to any part of the Premises by fire and
lightning, with extended coverage insurance, vandalism and malicious
mischief insurance. Said extended coverage insurance shall cover loss or
damage by explosion, windstorm, riot, aircraft, vehicle damage, smoke and
such other hazards as are normally covered by such. insurance. COUNTY
shall provide LESSOR a letter of self-insurance indicating the
aforementioned provisions and. naming LESSOR as an additional insured.
COUNTY'S S insurance shall not extend to those items that are maintained
or are the responsibility of LESSOR, including LESSOR'S liability
insurance.
b. COUNTY shall provide fire insurance on its own contents, improvements
and betterments and personal property contained within or on the Premises
under a standard all-risk policy excluding earthquake and flood.
12
c. LESSOR shall have no interest in the insurance upon COUNTY'S
equipment and fixtures not attached to the Premises and will sign all
documents reasonably necessary or proper in connection with the settlement
of any claim or loss by COUNTY.
d. COUNTY shall provide rental interruption insurance for loss of rental
income for up to 18 months naming LESSOR as insured.
e. COUNTY shall maintain insurance for all plate glass upon the Premises.
C.3. SERVICE BY LESSOR: It is understood and agreed LESSOR shall provide
certain janitorial services, landscaping, maintenance, construction, remodeling or like
services beyond those which are the LESSOR'S responsibilities as specified in Paragraph
A.9., as requested by COUNTY from time to time during the term of this Lease or
extension thereof. COUNTY shall pay to LESSOR. as additional rental one hundred
percent (100%) of the costs of the service.
LESSOR shall consult with COUNTY and select either licensed, insured
contractors or employees of LESSOR to provide the service. LESSOR shall obtain
COUNTY'S prior approval on the scope, term, and cost of the contracts. COUNTY shall
have the right to change the level of service from time to time by giving LESSOR thirty
(30) days' prior written notice, including the right to terminate any or all service, or to
require different contractors to provide the service.
CA. HAZARDOUS MATERIALS: LESSOR warrants to COUNTY that LESSOR
does not have any knowledge of the presence of hazardous materials or contamination of
the Building or Premises in violation of environmental laws. LESSOR agrees to defend,
save, protect and hold harmless COUNTY from any loss arising out of the presence of
any hazardous materials on the Premises which is not a result of the COUNTY'S use and
occupancy of the Premises. LESSOR acknowledges and agrees that COUNTY shall have
no obligation to clean up or remediate, or to contribute towards the cost of clean up or
remediation, of any hazardous materials that is not caused to be present, released,
discharged or spilled on or about the Premises by COUNTY or any of its agents,
13
employees, contractors, invitees or other representatives. The obligations of this
paragraph shall survive the termination of this Lease.
COUNTY agrees to defend, save, protect and hold LESSOR harmless from and
against all liabilities, claims, actions, foreseeable and unforeseeable consequential
damages, costs and expenses (including sums paid in settlement or claims and all
consultant, expert and legal fees and expenses of LESSOR'S counsel) or loss directly or
indirectly arising out of or resulting from the presence of any hazardous materials as a
result of COUNTY'S activities, in or around any part of the property, including those
incurred in connection with any investigation or site conditions or any clean-up, remedial,
removal or restoration work, or any resulting damages or injuries to the person or
property of any third party or to any natural resources.
"Hazardous Materials" is defined to mean any substance, material or waste,
including lead based paint, asbestos and petroleum (including crude oil or any fraction
thereof), which is or becomes designated as a hazardous substance, hazardous waste,
hazardous material, toxic substance or material under any federal, state or local law,
regulation or ordinance.
C.5. CANCELLATION: In the event the COUNTY is unable to occupy the Premises
or prevented from fully utilizing the Premises for its primary purpose as a warehouse and
office due to the enforcement of Airport Clear Zone restrictions or Airport related health
and safety factors, COUNTY shall have the right to terminate this Lease on nine (9)
months prior written notice to LESSOR.
C.6. PROPERTY TAXES: COUNTY shall, during the term of this Lease or any
extension thereof, pay all City and County taxes levied against land and improvements
that form the Premises, but excluding any penalties or special assessments which may
hereafter be levied against the Premises, except COUNTY shall not pay any increase
resulting from a change in ownership of the property.
14
It is understood and agreed that during the last year of occupancy, said taxes shall
be prorated between LESSOR and COUNTY according to the number of full months the
COUNTY shall have possession of the Premises.
C.7. RIGHT 4F FIRST REFUSAL TO BUY: Should LESSOR or his successor in
interest during the term of this lease or any extension thereof, elect to sell the Premises,
LESSOR shall give COUNTY a written ninety (90) day right of first refusal in which to
meet the terms and conditions of such sales offer and COUNTY shall respond to said
Right of First Refusal to Buy in a timely fashion. If COUNTY does not act within said
ninety (90) day period, LESSOR shall be free to sell the Premises in accordance with the
terms and conditions of said offer, subject to the terms of this Lease. This Right of First
Refusal to Buy shall also include the property (APN 112-252-006) outlined in paragraph
C.8. RIGHT TO LEASE ADDITIONAL PARKING below.
C.8. FLIGHT TO LEASE ADDITIONAL PARKING: As part of the consideration
for this Lease, LESSOR hereby grants to COUNTY the exclusive right and privilege to
lease the parking lot situated on Parcel 22 of Tract 3564, Map Book 112-29 Official
Records of Contra Costa County(APN 112-252-006) described in Exhibit B — Additional
Parking Lot, attached hereto and made a part hereof. Currently, COUNTY leases from
LESSOR the parking lot under a lease dated September 25, 2001 for the premises at 2355
Stanwell Circle, Concord. Should COUNTY terminate its lease for 2355 Stanwell Circle,
Concord, at any time during the term or extension of this Lease, COUNTY shall have the
right to lease said parking lot at a fair and reasonable rate to be determined between
LESSOR and COUNTY. Upon the termination of the lease for 2355 Stanwell Circle,
Concord, COUNTY shall notify LESSOR, in writing, should COUNTY intend to proceed
with the leasing of the parking lot. COUNTY shall have forty-five (45) from the date of
COUNTY'S notification to LESSOR to complete the lease or forfeit its right to the
parking lot.
15
C.9. TERMINATION OF PRESENT LEASE: It is understood and agreed that
COUNTY now leases the Premises under the terms of a lease dated April 21, 1992. Upon
commencement of this Lease, said lease dated April 21, 1992 shall terminate.
(Remainder of page intentionally left blank)
16
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