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HomeMy WebLinkAbout02/07/2006, C4 - ASSIGNMENT AND EXTENSION OF LEASE AGREEMENT WITH FRED GLICK FOR CITY OWNED PROPERTY IN STENNER CANY council 7 DC acEnaa Report CITY O F SAN LUIS O B I S P O FROM: Shelly Stanwyck,Assistant City Administrative Officer Prepared By: Neil Havlik,Natural Resources Manager SUBJECT: ASSIGNMENT AND EXTENSION OF LEASE AGREEMENT WITH FRED GLICK FOR CITY OWNED PROPERTY IN STENNER CANYON CAO RECOMMENDATION Approve assignment of, and extension to, the existing month-to-month lease with Mr. Ken Glick for rental of the city owned property in Stenner Creek Canyon, to his son Fred (Ken Glick's attorney in fact), for the period February 1, 2006 to July 31, 2006. DISCUSSION This 13 acre property in Stenrier Creek Canyon has been owned by City of San Luis Obispo (as part of the old water treatment plant) for a number of years. The property has been leased to Mr. Ken Glick, who owns an adjacent, 900 acre ranch, since at least 1993. A mobile home, once owned by the City and sold in 1993 to Mr. Glick, is on the premises. At the time of sale of the mobile home, the property was leased to Mr. Glick for a period of five years. At the end of that period, (1998) Mr. Glick was to remove the mobile home from the site and restore it to a natural condition. In March, 1998 Mr. Glick approached City staff about the possibility of his acquisition of the 13 acre property in exchange for a conservation easement on all or part of his adjacent ranch. Discussions about the possibility appeared promising enough that, in September 1998, the City Council approved an extension of the lease, anticipating that some mutually acceptable arrangement might be made during that time. For a variety of reasons, however, this did not occur. The lease term expired in September 2000, but neither party perceived a need to change the arrangement. This was due to the fact that there was the continued possibility of a trade with Mr. Glick, and later the possibility of a sale to Dennis and Sandra Ahearn as part of discussions with them regarding their property on the Cuesta Grade. Due, however, to Mr. Glick's failing health, replacement by his son Fred Glick as attorney in fact, and the ultimate cessation of trade or sale discussions in September of last year, staff feels that it is time to conclude this arrangement, and that is the purpose of this assignment and extension. At the conclusion of the term, the Glick family will remove the mobile home from the property and return the site to a more natural g/havlik/councilagenda/glick lease2 C�� Council Agenda Report—Assignment and Extension of Lease Agreement Page 2 condition therefore, a reasonable amount of time is included in the lease extension to prepare for the move. CONCURRENCES The Utilities Department, which administers the property, has been a party.to the discussions with Mr. Glick and concurs in this arrangement. FISCAL IMPACT Rental for the property will be $400 per month, for a total of$2,400 for six months. ALTERNATIVE The Council could reject the extension. This is not recommended as the extension represents a reasonable approach to concluding this long-standing arrangement which is no longer in either party's interest, and which does involve the need for certain logistical preparations. Attachments: 1: Assignment and Extension of Lease of Property 2: Extension of Lease of Property (1998) 3: Lease of Property (1993) cy2 Jan •26 . 2006 8 :56AM LAW OFFICE OF FRED K GLICK ESQ No -3689 P . 3 ATTACHMENT ASSIGNMENI'AND EXTENSION OF LEASE AGRF,FMENT This Assignment and Extension of Lease Agreement, made and entered into by and between the City of San Luis Obispo, Stale of California, hereinafter referred to as "Crl`Y", and Frederick Glick, hereinafter referred to as"LESSEE'; as made with regard to the following RECITALS WHEREAS, City is the owner of certain described real property located in the County of San Luis Obispo, State of California,identified as San Luis Obispo County APN 073-281-004;and WHEREAS, Kenneth L. Glick, the original Lessee; has been replaced by his son and attorney in fact Frederick Glick,in this matter, and WHEREAS, said real property has upon it a mobile home owned by Lessee;and WHEREAS, City and Lessee arc parties to a previous agreement, entitled "Lease of Property" dated October 14, 1998, and extended on September 1, 1999, and continuing on a month to month basis since the expiration of the term ofthc lease as extended;and WIIEItEAS, City and Lessee now wish to formalize and extend said lease to July 31,2006; NOW TItLREFORE, in consideration of the promises and agreements, covenants and conditions stated in said Lease dated October 14, 1998 and amended on September 1, 1999, the parties hereby agree as follows: 1. PREMISES: Lessee hereby rents from the City of San Luis Obispo the real property located on Stenner Canyon Road for purposes of maintaining the mobile home currently at that location and no other purpose. 2. ASSIGNMENT. City hereby consents to the assignment of this Lease Agreement from Kenneth L. Glick to Frederick Glick. 3. TERM. The term of this Agreement shall be six months, commencing on February 1,.2006 and terminating July 31, 2006. If lessee remains in possession of all or any part of the property after the expiration of the term hereof, with the express or implied consent of City, such tenancy shall be from month to month only, and not a renewal hereof or an extension for any further term, and in such case, monthly rent shall be payable in the amount specified in this Agreement. Such month-to-month tenancy shall be subject to every other provision, covenant and agreement contained herein. Acceptance by City of rent after such expiration or earlier termination shall not constitute a holdover hereunder or result in a renewal. The foregoing provisions are in addition to and do not allect the right of re-entry or any rights of City hereunder or as otherwise provided by law or in equity, and in no way shall affect any right which City may otherwise have to recover damages from Lessee for loss or liability incurred by City resulting from such failure by Lessee to surrender the Premises. Nothing contained in this section shall be construed as consent by City to any holding over by Lessee, and City expressly reserves the right to require Lessee to surrender possession of the Premises to City as provided in this Agreement upon the expiration or other termination of this Agroement. This Agreement may be renewed at the discretion of the City. 4. CONSIDERATION: Lessee shall pay the sum of$400.00 per month beginning February 1, 2006 with rent due on the first of each month. e y-3 Jan . 26 . 2006 8 : 56AM LAW OFFICE OF FRED K GLICK ESQ No -3689 P . 4 Assignment and Extension of Lease Agreement ATTACHMENT 1 Page 2 of 2 5. ALL OTHER CONDITIONS OF LEASE'DATED OCTOBER 14, 1998, OR AS AMENDED SEPTEMBER I, 1999, TO REMAIN IN EFFECT. .All other terms and conditions of the Lease dated October 14, 1998, between the City of San Luis Obispo and Kenneth L. Glick, except as said lease was amended on September 1, 1999, shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto set their hands the day and year opposite their signatures. CITY OF SAN LUIS OBISPO Date: __ By: Ken Hampien City Administrative Officer Irate: .Z� 2dVo!� Bly- FrAmiCk Click,Lessee, AAPPR ., S TO FO Jonathan P. Lowell C:IDxwerYrmd&•1N,Q.tYltimUpplro�lm ggqM,YNaU.wlxvaVa9I�'tatt'a9el-a!('s.osod.000uonRrCF7r}NMme1A7wmnoyearrih:foa3lest:@1v�,dRordAgaememy/dc/ ATTACHMENT 2 EXTENSION OF LEASE OF PROPERTY: �/.OG Stenner Canyon APN 073-281-004 This Extension of Lease, made and entered into this first day of September, 1999, by and between the City of San Luis Obispo (hereinafter, "City"), a Municipal Corporation, and Kenneth L. Glick (hereinafter "Lessee"), is made with regard to the following RECITALS: WHEREAS, the parties hereto are currently party to a Lease dated September 1, 1998 whereby the City has leased approximately 13.62 acres of real property known as APN 073-281-004 Stenner Canyon, San Luis Obispo County, California ("the premises") to Lessee and, WHEREAS, the parties now desire to extend said Lease for a period of up to eight (8) months to April 30, 2000. NOW, THEREFORE, in consideration of the promises and agreements, covenants and conditions stated in said Lease of September 1, 1998, and further to the conditions contained herein, the parties agree as follows: 1. INITIAL EXTENSION OF TERM The term of the existing Lease dated September 1, 1998 is hereby extended from September 1, 1999 to December 31, 1999. 2. FURTHER EXTENSION Provided that satisfactory progress is made on the possibility of a property interest trade between the two parties this lease may be extended by the City Administrative Officer for an additional four(4) months to April 30, 2000. f 3. ALL OTHER CONDITIONS OF LEASE DATED SEPTEMBER 1. 1998 TO REMAIN IN EFFECT All other terms and conditions of the Lease dated September 1, 1998 between the City of San Luis Obispo and Kenneth L. Glick for the premises shall remain in full force and effect except as expressly amended herein. In Witness whereof, the parties have executed this lease on the date first above .written. Cy�" EXTENSION OF LEAS"F PROPERTY: ATTACHMENT 2 Stenner Canyon APN 073-281-004 Page 2 CITY OF SAN LUIS OBISPO, KENNETH L. GLICK A municipal corporation Mayor, Allen Settle TTE APPROVED AS TO FORM: i lerk, Lee nce City Attom , Jeff Jorgens n N� City Administrative Officer, John Dunn C/-� ATTACIIMEIVT 3 LEASE OF PROPERTY: Stenner Canyon APN 073-281-004 This lease, made and entered into this 14th day of October , 1998, by and between the CITY OF SAN LUIS OBISPO (hereinafter, "City"), a Municipal Corporation, and KENNETH L. GLICK (hereinafter "Lessee"). WITNESSETH: WHEREAS, the parties hereto desire to enter into an agreement whereby the City will lease approximately 13.62 acres of the City's real property known as APN 073-281-004, Stenner Canyon, San Luis Obispo County, California. NOW, THEREFORE, in consideration of the promises and agreements, covenants and conditions stated herein, the parties agree as follows: 1 . PREMISES LEASED City leases to lessee the real property described, in Exhibit A to this lease, together with a double-wide garage thereon, subject to any rights and or easements as described in Schedule B of Exhibit A. 2. TERM The term of this lease shall commence on September 1, 1998, and terminate on August 31, 1999. 3. RENTAL Lessee shall pay to the City the sum of Three Hundred Seventy-five dollars $( 375) per month, which shall include the real property and fixtures described above, payable monthly in advance on the first day of each month. 4. SECURITY DEPOSIT Lessee shall deposit with. City upon execution hereof a security deposit in the amount of one month's rent as security for Lessee's faithful performance of obligations hereunder. If Lessee fails to pay rent or-other charges due hereunder, or otherwise defaults with respect to any provision of this Lease, City may use, apply or retain all or any portion of said deposit for the payment of any rent or other charge in ATTACHMENT 3 Lease of APN 073-281-004 Page 2 default for the payment of any other sum to which City may become obligated by reason of Lessee's default, or to compensate City for any loss or damage which City may suffer thereby. If City so uses or applies all or any portion of said deposit, Lessee shall within ten (10) days after written demand.therefor deposit cash with City in an amount sufficient to restore said deposit to the full amount then required of Lessee. If the monthly base rent shall, from time to time, increase during the term of this lease, Lessee shall, at the time of such increase, deposit with City additional money as a security deposit so that the total amount of the security deposit held by City shall at all times bear the same proportion to the then current base rent as the initial security deposit bears to the initial base rent. City shall not be required to keep said security deposit separate from its general accounts. If Lessee performs all of Lessee's obligations hereunder, said deposit, or so much thereof as has not heretofore been applied by City, shall be returned, without payment of interest or other increment for its use, to Lessee (or, at City's option, to the last assignee, if any, of Lessee's interest hereunder) at the expiration of the term hereof, and after Lessee has vacated the premises. 5. DEFAULT Lessee agrees to pay said rents to City at the time and in the manner herein provided, without any deduction whatever and keep the leased premises free from any and all claims and demands against City of any kind or character. Should Lessee fail to pay any part of the rent herein specified, at the times or in the manner herein provided, or fail faithfully to comply with or perform any other of the terms, conditions, covenants and agreements of this lease on the part of Lessee to be performed or complied with, then and in that event, City may terminate this lease or may pursue any remedy whatsoever provided for by law, and in any of said events, City shall be entitled to take possession of said leased property and may enter into and upon said leased premises, without notice to said Lessee, and exclude said Lessee therefrom and from in any manner having access thereto, and remove all persons and property therefrom, and by process of law, or otherwise, take and resume possession of said leased premises, and in the removal of such property, City shall in no way be responsible or liable either to Lessee or to any other person whomsoever for such property or the safekeeping thereof or for any damage. City is hereby further authorized to store such removed .property in any warehouse or other place at the expense and for the account of Lessee. 6. RIGHT-OF-WAY Nothing in this lease will prohibit City's continued access to its water lines and facilities adjacent to this property. Fencing or other obstruction of the cy- � - - -- ATTACHMENT 3 Lease of APN 073-281-004 Page 3 privately-maintained road is prohibited. 7. USE Lessee shall be entitled to use the property as the site for Lessee's mobilehome, grazing and other lawful uses, but this use is limited to activities that will have no detrimental impact on the area environment or the creek habitat or water quality. Lessee agrees to keep said premises in a clean, wholesome condition, free from rubbish, garbage and like accumulations of waste. 8. UTILITIES Lessee shall make all arrangements for any payment due for all utilities and services furnished to or used by it on the leased premises, including, without limitation, gas, electricity, water, telephone service, trash collection; and sanitation. This includes any and all costs for connection charges. The City assumes no responsibility and makes no warranties regarding any utilities, and Lessee hereby holds the City harmless in this regard. 9. ALTERATIONS AND REPAIRS Lessee agrees that the garage is now in tenantable and good order and condition and Lessee shall keep and maintain premises in good and sanitary order and condition, and that no alteration, repair or change shall made in or about leased premises without the written consent of the City, said Lessee hereby waiving all rights under the provisions of section 1942 of the Civil Code of the state of California to make repairs at the City's expense. Lessee shall not mar or deface in any manner any part of said leased premises. Lessee shall, at the termination of this lease, surrender leased premises to the City in as good order and condition as reasonable and proper use will permit. 10. PROPERTY TAX If this lease should result in the assessment of taxes for this real property, including, but not limited to, possessory interest taxes, Lessee agrees that any.tax liability will result in an increase in the amount of rent due the City, equal to the amount of any such tax liability. 11 . ASSIGNMENT Lessee shall not assign this lease in whole or in part nor sublet the premises in whole or in part without the written consent of City. Said consent shall C � 9 - - ATTACHMENT 3 Lease of APN 073-281-004 Page 4 not be unreasonably withheld. If the City consents to a sublease, Lessee shall remain responsible for the performance of all the terms, covenants and conditions of this Lease including financial obligations to the City. If Lessee assigns or subleases said Lease or any portion thereof without the prior written consent of the City, then said sublease or assignment shall, at the option of the City, immediately cease and terminate. No interest of Lessee in. this lease shall be assignable by operation of law. Each of the following acts shall be considered an involuntary assignment: a. If Lessee is or becomes bankrupt or insolvent, makes an assignment for benefit of creditors; b. If a writ of attachment or execution is levied on this lease; C. If, in any proceeding or action to which Lessee is a party, a receiver is appointed with authority to take possession of the premises. Any involuntary assignment.shall constitute a default by Lessee and City shall have the right to elect to terminate this lease. 12. INSPECTION The City shall have the right at all reasonable times to enter upon the premises for the purpose of inspecting the same, determining that all the terms, covenants and conditions of this lease are being kept and performed by Lessee. 13. HAZARDOUS WASTE Lessee agrees it will not, in violation of any applicable law, place, hold, or dispose of any hazardous material (defined hereinafter) on, under or at the premises, the building or the complex and that it will not, in violation of any applicable law, use the premises or any other portion of the building or the complex as a treatment, storage, or disposal (whether permanent or temporary) site for any hazardous material. Lessee further agrees that it will not cause or allow any asbestos tobe incorporated into any improvements or alternations which it makes or causes to be made to the premises. Lessee hereby indemnifies the Lessor against any all losses, liabilities, damages, injuries, costs, expenses and claims of any and every kind whatsoever (including without limitation, court costs and attorneys' fees) which at any time or from time to time may be paid, incurred or suffered by, or asserted against the City for, with respect to, or as a direct or indirect result of (a) breach by Lessee of the foregoing covenants, or, (b) to the extent caused or allowed by Lessee or any agent, employee; invitee, or licensee of leakage, spillage, discharge, emission c y�o ATTACHMENT 3 Lease of APN 073-28.1-004 Page 5 or release from, onto, or into the premises, the complex, the atmosphere, or any watercourse, body of water, or groundwater, or any hazardous material (including, without limitation, or any losses, liabilities, damages, injuries, costs, expenses or claims asserted or arising under the Comprehensive Environment Response, Compensation and Liability Act, any so-called "Superfund" or "Superlien" law, or any other federal, state, local or other statute, law, ordinance, code, rule, regulation, order or decree regulating to or imposing liability or standards of conduct concerning any hazardous material); and the provisions of and undertakings and indemnification set out in this paragraph shall survive the termination of this Lease, and shall continue to be the personal liability, obligation and indemnification of the Lessee, binding upon the Lessee, forever. 14. INDEMNIFICATION Lessee shall defend, indemnify and save harmless the City and its agents, officers and employees against any and all claims and demands made because of: (a) any damage, injury or death suffered by any person or corporation and caused by any negligent act or omission of Lessee, its agents; employees,tenants, or assigns under this agreement; (b) any damage caused by any negligent act or omission of Lessee, its agents, employees, tenants or assigns under this agreement to any property of the City and its agents, officers and employees; (c) any damage, injury or death suffered by any agent, tenant, or assign of Lessee under this agreement, except for claims and demands resulting from the negligence or willful misconduct of the City and its agents, officers and employees; (d) Lessee's negligent violation of any law, any regulation or any term or condition of any permit. Lessee shall also defend, indemnify and save harmless the City and its agents, officers and employees against any and all expense of investigating and defending against such claims and demands, including, but not limited to, attorney's fees and costs. C 171-11 -- - - ATTA9 Hfil,E NT 3 Lease of APN 073-281-004 Page 6 15. INSURANCE Lessee shall provide insurance as described in Exhibit B to this lease. 16. MODIFICATION OF THIS AGREEMENT Each of the terms, covenants, conditions of this lease are mutual and dependent, and any breach of any of the said terms, covenants or conditions shall constitute grounds for the termination, cancellation, or forfeiture of this lease. 17. ENFORCEMENT COSTS AND ATTORNEY'S FEES The prevailing party in any action between the parties to this agreement brought to enforce the terms of this agreement may recover from the other party its reasonable cost and attorneys fees in connection with such an action. 18. WAIVER OF RELOCATION ASSISTANCE In accordance with Civil Code Section 3513, Lessee hereby waives any rights to relocation assistance to which Lessee might otherwise be entitled, pursuant to Government Code Section 7260, et sea. Lessee shall indemnify and hold City harmless for any and all claims and demands which may be made against City in the event Lessee fails to include a waiver of relocation assistance clause in any lease, sublease, assignment or other agreement with respect to occupancy of the property .by any tenant, subtenant or assign. 19. REMOVAL OF MOBILE HOME At the end of the lease_term, Lessee shall, at his sole cost and expense, remove the existing mobile home from the leased premises and restore the mobile home site to an undeveloped condition acceptable to the City. Should Lessee fail to remove the mobile home within 60 days of the expiration of the lease term or sooner termination, at City's option: (1) said mobile home shall become the property of City; or (2) City may remove and dispose of said mobile home. Lessee shall indemnify and hold City harmless for all costs incurred, or claims, actions, liens or judgments arising as a result of the removal or disposal or City ownership of said mobile home on Lessee's failure to remove. ATTACHfi1,E 1r 3 Lease of APN 073-281-004 Page 7 20. SUBJECT TO ALL LAWS AND BINDING This lease shall be subject to and subordinate to all laws, rules and regulations of the State of California and City of San Luis Obispo, including any and all conditions imposed by the City Council. This lease shall extend to and be binding upon the parties hereto, their representatives, assigns and successors, whomsoever. 21 . NOTICE Any notice required or permitted to be given or served under the terms hereof shall be considered delivered when sent registered, return receipt requested, through the United States mail to: Citv Lessee Utilities Director . Kenneth L. Glick City of San Luis Obispo 1315 Santa Rosa Street 955 Morro Street San Luis Obispo, CA 93401 San Luis Obispo, CA 93401 805-781-7215 805-544-3282 22. ENTIRE AGREEMENT This lease contains the entire agreement of the parties on the matters covered and it may not be modified except by written agreement. IN WITNESS WHEREOF, the parties have executed this lease on the date first above written. CITY OF SAN LUIS OBISPO, KENNETH L. GLICK a municipal cor ion Mayor Allen S tle Lease of APN 073-281-004 Page 8 i ST: r APPROVED AS TO FORM: Cit Clerk Lee Price ty for ey , EXHIBIT B i� MURA\�CE REQUIREA/ENTS FOR LESSEES (NO AUTO RISKS) Lessee shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the Lessee's operation and use of the leased premises. The cost of such insurance shall be borne by the Lessee. Minimum Scope of Tnsurance Coverage shall be at least as broad as: 1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001). 2. Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance (for lessees with employees). 3. Property insurance against all risks of loss to any tenant improvements or betterments. Minimum Limits of Insurance Lessee shall maintain limits no less than: 1. General Liability: 51,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. 2. Employer's Liability: $1,000,000 per accident for bodily injury or disease. 3. Property Insurance: Full replacement cost with no coinsurance penalty provision. Deductibles and Self-Tasured Retentions Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either. the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers; or the Lessee shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. Other Insurance Provisions The general liability policy is to contain, or be endorsed to contain, the following provisions: 1. The City, its officers, officials,employees, agents and volunteers are to be covered as insureds as respects: liability arising out of premises owned, occupied or used by the Lessee. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officers, official, employees, agents or volunteers. 2. The Lessee's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, agents and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials,employees, agents or volunteers shall be excess of the Lessee's insurance and shall not contribute with it. 3. Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the City, its officers, officials, employees, agents or volunteers. 4. The Lessee's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 5. Each insurance policy required by this clause shall be endorsed to .state_that coverage shall not be suspended, voided,cancelled by either party, reduced in coverageor in limits except after thirty(30)days' prior written notice by certified mail, return receipt requested, has been given to the City. Acceptability of Insurers Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII. Verification of COTerne Lessee shall furnish the City with a certificate of insurance showing maintenance of the required insurance coverage. An original endorsement effecting general liability coverage required by this clause is also to be provided. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be received and approved by the City before the lease commences. 17