HomeMy WebLinkAbout11-05-2013 ac codron c1R EiVED
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DATE: October 30,2013
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TO:
FROM:
VIA:
SUBJECT
City Council
Michael Codron, A ager
Katie Lichtig, City
Item C10: Attachm endment (837 Marsh Street)
At the time of publication of the agenda, Attachment I was not ready to be attached to the
agenda report for this item. The final lease amendment recommended for approval is now being
distributed to the City Council and is posted on the City's website.
Attachment I
FIRST AMENDMENT TO BUILDING AGREEMENT AND LEASE
FOR 837 MARSH STREET
THIS FIRST AMENDMENT TO BUILDING AGREEMENT AND LEASE (.'FiTst AmendMCNt'') iS MAdC ANd
entered into this Day Of November, 20l3, by and between THE CITY OF SAN LUIS OBISPO ("City" or
"Landlord") and JAMESTOWN PREMIER SLO RETAIL, L.P., as successor in interest to COPELANDS'
PROPERTIES, LLC, which was the successor in interest to CHARLES FORD COMPANY, INC., ("Tenant"), with
respect to that certain Building Agreement and Lease, dated May 15, 1989 (the "Original Lease") between Landlord
and Tenant, relating to the retail commercial space çommonly known at 837 Marsh Street, San Luis Obispo,
California ("Premises"). All capitalized terms not otherwise defTned in this First Amendment shall have the
meaning given in the Original Lease.
AGREEMENT:
V/HEREAS, on May l5'h, 1989 the City entered into a building and lease agreement with Contractor to
build the Marsh Street parking structure and a 15,000 square foot retail space at 837 Marsh Street; and
)
V/HEREAS, the City and Tenant desire to amend the existing lease as set forlh herein
NOW THEREFORE, the City and Tenant, in consideration of the mutual representations, warranties and
covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, subject to the terms and conditions hereinaÍïer set forth, and intending to be legally bound,
do hereby mutually agree as follows:
1. Article I -Term, Section 2 of the Original Lease shall be deleted in its entirety and shall be replaced as
follows
2, TO HAVE AND TO HOLD said premises with all the rights, privileges, appurtenances thereunto
beginning and attaching, unto the Tenant, its successors and assigns for the term of approximately thirty-
five (35) years commencing as set in the Original Lease and terminating on January 31,2024. Said initial
term shall be followed by one five (5) year option term, with the continuation of the lease and any
modifications or amendments to terms subject to mutual negotiation and agreement of the parties.
2. Article V - Rent, Scctions 1,2 and 3 shall be deleted in their entirety and shall be replaces as follows:
A. Rental rate during the initial term shall be as follows:
L From February l,20l4,to January 37,2015, rent shall be $l 1,330 a month.
2. Thereafter, from February l, 2015, to January 31, 2024, rent shall increase on
February I ofeach year by 3%o.
B. The rent rate for the five (5) year option shall be as mutually agreed upon by the parties.
837 Marsh Street Lease Modifìcation Attachment I
November 5,2013
Page 2 of3
3. Article VII - Maintenance and Repairs, a new Section 6 shall be added to the Original Lease as follows:
6. Improvements and repairs to be completed by Tenaht prior to re-opening for business:
A. Replace or modif, corner display window.
B, Update corner planter area.
C. Update or repair floor tile entry area to retail entrance and elevator and stair
entrance.
D. Clean and repair brick on both the Marsh and Chorro Street sides of the
building.
E. Repair and repaint lower wall molding at sidewalk level surrounding building
on both Marsh and Chorro Streets.
F, Update exterior lighting under awnings on both Marsh and Chorro Streets.
G. Replace or repair windows that have been etched.
H. Repair or replace the back delivery door on Chorro Street.
Tenant shall be solely responsible for obtaining any and:ìäll permits or approvals required and for
compliance with all applicable laws relating to any work to be performed pursuant to this Agreement,
including but not limited to Section 1720 of the California Labor Code. Tenant expressly agrees that any
failure or alleged failure to do so constitutes an act, omission or negligence of tenant and/or a claim, cost,
expense or liability incurred in connection with a claim arising by reason of use, occupancy or enjoyment
of premises by Tenant and, as such, shall entitle the City to be held harmless, defended and indemnified by
Tenant pursuant to Arlicle XIX of the Original Lease.
4. As additional consideration for the execution of this First Amendment, Tenant shall promptly pay to
Landlord the sum of $9,000 upon the full execution of this First Amendment. Additionally, Tenant agrees, upon
execution of a sublease, to make or cause its subtenant to make, such tenant improvements and repairs and as may
be deemed by Tenant to be necessary and convenient to the occupancy, including but not limited to replacement or
repair of the HVAC system, in an approximate value of $300,000.00.
5. Except for the amendments set forth above, the Original Lease shall remain in full force and effect.
6, This First Amendment may be executed in one or more counterparts, each of which shall for all purposes
be deemed to be an original and all of which shall constitute one and the same agreement,
837 Marsh Street Lease Modification
November 5,2013
Page 3 of3
Anthony Mejia
City Clerk
TENANT:
JAMESTOWN PREMIER SLO RETAIL, L,P.,
a Delaware limitcd partnership
By: JAMESTOWN Premier SLO RetailGP, LL C,
a Delaware limited liability company,
its general partner
Attachment I
IN WITNESS V/HEREOF, the pa.rties hereto have caused this instrument to be executed the day and year
first written above.
LANDLORD:
CITY OF SAN LUIS OBISPO,
a municipal corporation and Chartet City
By:
Katie Lichtig
City Manager
ATTEST:APPROVED AS TO FORM;
By
J, Christine Dietrick
City Attorney
By:
Its: