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HomeMy WebLinkAbout12-01-2016 Lease of a portion of the real property located at 43 Prado road for the Prado Day CenterLEASE OF A PORTION OF REAL PROPERTY LOCATED AT 43 PRADO ROAD FOR THE PRADO DAY CENTER APN 053-051-045 This lease is made and entered into this 1St day of December , 2016 by and between the CITY OF SAN LUIS OBISPO (hereinafter "CITY"), a municipal corporation, and the COMMUNITY ACTION PARTNERSHIP OF SAN LUIS OBISPO (hereinafter "CAPSLO"), a community based non-profit organization. WITNESSETH: WHEREAS, the CITY entered into a lease with CAPSLO on November 17, 2007, for the operation of a homeless services day center (Prado Day Center) located on 43 Prado Road and known as a portion of APN 053-051-045, San Luis Obispo County, California; and WHEREAS, CAPSLO is the County's Head Start and Community Action program agency and the administrator of the Maxine Lewis Memorial Shelter and has administered the Prado Day Center for the last nineteen (19) years; and WHEREAS, CAPSLO has the expertise, service agreements, and work force required to provide the necessary services to run the Prado Day Center; and WHEREAS, CAPSLO's previous lease offered two, three year extensions which expired on November 30, 2016; and WHEREAS, CAPSLO is in the process of constructing a new homeless care facility located at 40 Prado Road ("40 Prado"). Likewise, the CITY is in the process of upgrading its Water Resource Recovery Facility ("WRFF") which will require demolition and use of the Prado Day Center site; and WHEREAS, CAPSLO has requested a new lease, not to exceed thirteen (13) months, expiring on December 31, 2017, with no option for renewal. It is the intention of the parties for 1 Prado Day Center Lease this lease term to coincide with the completion of the new facility at 40 Prado and/or the need for the Prado Day Center location for the CITY's WRRF upgrade project. 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 CAPSLO that portion of APN #053-051-045, real property as shown on Exhibit A to this lease, subject to any rights and/or easements as may be legally recorded with the County Recorder's Office for the County of San Luis Obispo. 2. TERM The term of this lease shall commence on December 1, 2016 and extend for a period until December 31, 2017. Prior to that date, CAPSLO may terminate lease with thirty (30) days' notice. 3. RENEWAL This new lease agreement shall not exceed thirteen months, expiring on December 31, 2017 with no option to extend due to the start of construction of the City's WRRF Project in early 2018. However, should 40 Prado and the WRRF Project both be delayed, the City and CAPSLO may discuss a month to month lease agreement subject to the approval of the City Manager. CAPSLO acknowledges that any month to month arrangement is expressly subject to the timing and status of the City's WRFF upgrade project. CAPSLO 4. RENTAL Lease of this property for the purposes described herein shall be at no charge to the CAPSLO. CAPSLO agrees to provide homeless services at no charge to the City and community as a public benefit. 2 Prado Day Center Lease 5. UTILITIES CAPSLO shall make all arrangements for any payment due for all utilities and services furnished to or used by it on the leased premises. However, the City shall provide water, sewer, and trash services at no cost to CAPSLO. The City assumes no responsibility and makes no warranties regarding any utilities, and CAPSLO hereby releases from liability and holds the City harmless in this regard. 6. PROPERTY OR POSSESSORY INTEREST TAX If this lease should result in the assessment of taxes for this real property, including, but not limited to, possessory interest taxes, CAPSLO agrees that any tax liability will result in an increase in the amount of rent due to the City, equal to the amount of any such tax liability. 7. USE OF PROPERTY CAPSLO shall be entitled to use said property for the purpose of operation of a homeless day services center, and for no other purpose. Operation of the center shall consist of the provision of social services to the homeless, including food services. CAPSLO agrees that the use of said property as described shall be for the sole purpose of supporting CAPSLO's non-profit homeless services and programs and in no way shall be used for "for profit" activities. CAPSLO further agrees that a full description of the use of said property, and activities and improvements occurring on the property will be provided to the City Administrative Officer annually, and, any change in use will be submitted to the City for approval prior to commencement of that use or improvement. CAPSLO acknowledges that it is currently in possession of the premises and accepts them "as -is." Pursuant to California Civil Code section 1938, City hereby states that the premises has not undergone an inspection by a Certified Access Specialist (CASp). 8. ALTERATIONS AND REPAIRS CAPSLO shall be responsible for any and all alterations, improvements, or repairs to the property necessary for the orderly conduct of CAPSLO's operations. CAPSLO shall provide to the City for approval, prior to commencement of any work or activity, a complete description of any physical alteration of the property. CAPSLO further agrees to remove and return to original, any alterations to said property made by CAPSLO as requested by the City upon termination of 3 Prado Day Center Lease this Lease at CAPSLO's sole cost. CAPSLO shall be responsible for any and all repairs of said property and improvements there -on. Any and all improvements and alterations to said property shall be made in conformance to applicable laws and requirements. CAPSLO shall be responsible for obtaining any necessary permits and the cost of such permits as may be necessary to complete the improvements and/or alterations. 9. MAINTENANCE OF PROPERTY CAPSLO shall maintain property in an orderly and first class condition at all times, satisfactory to the City Administrative Officer or his/her designee. CAPSLO shall maintain adjacent properties free of litter resulting from CAPSLO's activities. CAPSLO shall at all items maintain property in a manner consistent with any applicable Federal, State, or City laws, regulations, or grant requirements and in such a manner as to ensure the protection of the public, CAPSLO's employees, volunteers, invitees, and the environment. 10. TRAFFIC CONTROL CAPSLO shall be responsible for control of traffic related to CAPSLO's operations. CAPSLO shall establish adequate controls, traffic flow, parking locations and procedures so as not to interfere with the flow of traffic on Prado Road and the Water Reclamation Facility (WRF) access road. CAPSLO shall provide and maintain the controls, clearances and visibility necessary to ensure the safe and orderly ingress and egress of the public, employees, volunteers and invitees to and from the property. All vehicles shall be properly parked within the boundaries of the leased property. No vehicles shall be parked on the WRF access road. CAPSLO shall at all times ensure a minimum clearance of twenty (20) feet of available roadway for Fire access on the WRF access road. 11. COORDINATION WITH CITY CAPSLO shall coordinate with the City any activities which have potential to impact in any way City operations. Upon notification by the City, CAPSLO shall immediately cease any operation deemed to interfere with the conduct of the orderly business of the City in its operations. El Prado Day Center Lease 12. PERMITS CAPSLO shall maintain any and all permits necessary for the conduct of the CAPSLO's business at the site as required by Law. 13. INDEPENDENT CONTRACTOR CAPSLO and all of its agents, representatives, and participants in any manner connected with CAPSLO's operations shall be independent contractors or volunteers for CAPSLO and shall not for any purpose be considered as employees or agents of City. 14. SUBJECT TO ALL LAWS AND BINDING This lease shall be subject to and subordinate to all Federal, State and City laws, rules, regulations and grant requirements, including any and all conditions imposed by the City Council. 15. TERMINATION FOR CAUSE Each of the terms, covenants and 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. 16. INDEMNIFICATION CAPSLO shall defend, indemnify and save harmless the City and its agents, officers and employees against any and all claims, demands, damages or liabilities (whether or not caused by negligence) including civil or criminal fines, arising out of or relating to any of the following: a) any damage, injury or death suffered by any person or corporation and caused by any act or omission of CAPSLO, its agents, employees, volunteers, tenants, invitees or assigns under this agreement; b) any damage caused by any act or omission of CAPSLO, its agents, employees, volunteers, 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 CAPSLO, its agents, employees, volunteers, tenants, invitees or assigns under this agreement, except for claims and demands 5 Prado Day Center Lease resulting from the proven sole gross negligence or willful misconduct of the City and its agents, officers, and employees; d) CAPSLO's violation of any law, any regulation or any term or condition of any permit. CAPSLO 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. 17. INSURANCE CAPSLO shall provide insurance, including but not limited to workers compensation insurance, including additional coverage for Automobiles. CITY shall be named as an additional insured. 18. ASSIGNMENT CAPSLO shall not assign this lease in whole or in part nor sublet the premises in whole or in part without the prior written consent of the City. If the City consents to a sublease, CAPSLO shall remain responsible for the performance of all the terms, covenants and conditions of this lease including and in particular the use of the property as described in Paragraph 7 of this agreement. If CAPSLO assigns or subleases said lease or any portion thereof without the prior written consent of the City, then said sublease or assignment shall be void, and the option of the City, this lease shall immediately cease and terminate. No interest of CAPSLO in this lease shall be assignable by operation of law. Each of the following acts shall be considered an involuntary assignment: a) If CAPSLO is or becomes bankrupt or insolvent, makes an assignment for the benefit of creditors; b) If, in any proceeding or action in which CAPSLO is a party, a receiver is appointed with authority to take possession of the premises. Any involuntary assignment shall constitute a default by CAPSLO and City shall have the right to elect to terminate this lease. 2 Prado Day Center Lease 19. INSPECTION The City shall have the right at all reasonable times to enter upon the property for the purpose of inspecting the same, determining that all the terms, covenants and conditions of this lease are being kept and performed by CAPSLO. 20. ENFORCEMENT The City Manager or his/her designee shall have all necessary authority to enforce the terms, covenants and conditions of this lease. Upon notice of violation of any of the terms, covenants and conditions of this lease, CAPSLO shall take whatever actions are necessary to correct the violation. All violations shall be corrected within thirty (30) days from the date of Notice and CAPSLO shall provide to the City a report outlining the cause of the violation and corrective measures taken to remedy the violation and prevent its recurrence. Significant violation shall be defined as any violation of the terms, covenants and conditions of this lease occurring and noticed more than two times in any calendar year, or, violation and notice of violation of any three terms, covenants and conditions of this lease occurring within an calendar ear, or, failure to correct a violation of any of the terms, covenants and conditions of this lease within 90 days from the date of Notice. Significant violations as defined herein will result in a hearing before the Council of the City of San Luis Obispo to determine appropriate remedies up to and including termination of this lease as defined under Paragraph 15 of this agreement. 21. LIENS CAPSLO shall keep the premises free from any liens arising out of any work performed for, materials furnished to, or obligations incurred by CAPSLO and shall hold City harmless against the same. 22. APPEALS Actions and determinations by the City Manager or his/her designee, relative to the terms, covenants and conditions of this lease may be appealed to the City Council pursuant to the provisions of Municipal Code Chapter 1.20. 7 Prado Day Center Lease 23. 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: City City Manager City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 24. ENTIRE AGREEMENT CAPSLO Community Action Partnership of San Luis Obispo County, Inc. 1030 Southwood Drive San Luis Obispo, CA 93401 This lease and attached Exhibit A contains the entire agreement of the parties on the matters covered and it may not be modified except by written agreement. Prado Day Center Lease IN WITNESS WHEREOF, the parties hereto have executed this agreement on the date first above written. CITY OF SAN LUIS OBISPO A Municipal MIA Heidi Harmon, Mayor ATTEST: `f Carrie Gallagher, City Clerk Christine Dietrick, City Attorney COMMUNITY ACTION PARTNERSHIP OF SAN LUIS OBISPO COUNTY, INC. By: Elizabeth Steinberg, CEO 6 Prado Day Center Lease Exhibit A z LL AL 0 lcb so W Ci i IZ 0 r- L 71 1 I 10