2002 09 17 RDATit,, 4 4 Qu&Z
Redevelopment Agency Agendas are
available on the City's Web Page
@ www.la-quinta.org
Redevelopment Agency
Agenda
CITY COUNCIL CHAMBER
78-495 Calle Tampico
La Quinta, California 92253
Regular Meeting
Tuesday, September 17 - 2:00 P.M.
CALL TO ORDER
Beginning Res. No. RA 2002-17
Roll Call:
Board Members: Adolph, Pena, Perkins, Sniff, Chairperson Henderson
II. PUBLIC COMMENT
At this time, members of the public may address the Redevelopment Agency on any matter not
listed on the agenda. Please complete a "request to speak" form and limit your comments to
three minutes. Please watch the timing device on the podium.
III. CLOSED SESSION
CONFERENCE WITH AGENCY'S REAL PROPERTY NEGOTIATOR, JERRY HERMAN,
PURSUANT TO GOVERNMENT CODE SECTION 54956.8 CONCERNING POTENTIAL
TERMS AND CONDITIONS OF ACQUISITION AND/OR DISPOSITION OF REAL PROPERTY
LOCATED WEST OF MONTEZUMA, EAST OF THE COACHELLA VALLEY WATER
DISTRICT STORM WATER CHANNEL, SOUTH OF CALLE ENSENADA AND NORTH OF
CALLE CHILLON. ASSESSORS PARCEL NUMBERS: 773-245-020, 773-311-027, 773-
190,003, AND 773-030-006, PROPERTY OWNER/NEGOTIATOR: C. BYRON
MURPHY/RICK MORRIS.
2. CONFERENCE WITH AGENCY'S LEGAL COUNSEL IN REGARD TO RONALD W.
YONEKURA AND DEBORAH L. YONEKURA AND N.L. HANOVER, CASE NO. RS-02-
21329-MG, PURSUANT TO GOVERNMENT CODE SECTION 54956.9(a).
3. CONFERENCE WITH AGENCY'S REAL PROPERTY NEGOTIATOR, MARK WEISS,
PURSUANT TO GOVERNMENT CODE SECTION 54956.8 CONCERNING POTENTIAL
TERMS AND CONDITIONS OF ACQUISITION AND/OR DISPOSITION OF REAL PROPERTY
LOCATED AT THE SOUTHEAST CORNER OF HIGHWAY 111 AND WASHINGTON
STREET (APN'S 643-020-017/018/023), WASHINGTON SQUARE. PROPERTY
OWNER/NEGOTIATOR: DALE FRANK.
RDA Agenda
September 17, 2002
4. CONFERENCE WITH AGENCY'S REAL PROPERTY NEGOTIATOR, JERRY HERMAN,
PURSUANT TO GOVERNMENT CODE SECTION 54956.8 CONCERNING POTENTIAL
TERMS AND CONDITIONS OF ACQUISITION AND/OR DISPOSITION OF REAL PROPERTY
LOCATED SOUTHEAST OF THE MILES AVENUE AND WASHINGTON STREET
INTERSECTION AND NORTH OF THE WHITEWATER CHANNEL (APN's 604-040-012/013
AND 604-040-022/023). PROPERTY OWNER/NEGOTIATOR: RICHARD OLIPHANT,
CALIFORNIA INTELLIGENT COMMUNITIES.
NOTE: Time permitting, the Redevelopment Agency Board may conduct Closed Session
discussions during the dinner recess. In addition, when the Agency is considering acquisition
of property, persons identified as negotiating parties are not invited into the Closed Session
Meeting.
RECONVENE AT 3:00 PM
IV. PUBLIC COMMENT
At this time members of the public may address the Agency Board on items that appear within
the Consent Calendar or matters that are not listed on the agenda. Please complete a "request
to speak" form and limit your comments to three minutes. When you are called to speak,
please come forward and state your name for the record. Please watch the timing device on
the podium.
For all Agency Business Session matters or Public Hearings on the agenda, a completed
"request to speak" form should be filed with the City Clerk prior to the Agency beginning
consideration of that item.
V. CONFIRMATION OF AGENDA
VI. APPROVAL OF MINUTES
1 . APPROVAL OF THE MINUTES OF AUGUST 6, 2002.
VII. CONSENT CALENDAR
Note: Consent Calendar items are considered to be routine in nature and will be approved by
one motion.
TRANSMITTAL OF DEMAND REGISTER DATED AUGUST 20, 2002, SEPTEMBER 3,
2002, AND SEPTEMBER 17, 2002.
2. TRANSMITTAL OF TREASURER'S REPORT DATED JUNE 30, 2002, AND JULY 31,
2002.
3. TRANSMITTAL OF REVENUE AND EXPENDITURES REPORT DATED JUNE 30, 2002,
AND JULY 31, 2002.
4. APPROVAL OF AN APPROPRIATION OF UP TO $15,000 FROM PROJECT AREA NO. 2,
LOW/MOD INCOME HOUSING AFFORDABLE FUND TO CURE A LOAN FOR AN AGENCY
AFFORDABILITY COVENANT ON A HOME LOCATED AT 47-875 SILVERBERRY.
RDA Agenda -2- September 17, 2002
APPROVAL OF A ONE-YEAR LEASE BY AND BETWEEN THE LA QUINTA
REDEVELOPMENT AGENCY AND MDS CONSULTING FOR AGENCY -OWNED PROPERTY
LOCATED A 79-799 OLD AVENUE 52.
VIII. BUSINESS SESSION - None
IX. CHAIR AND BOARD MEMBERS' ITEMS
X. PUBLIC HEARINGS
XI. ADJOURNMENT - Adjourn to a regularly scheduled Meeting of the Redevelopment Agency to
be held on October 1, 2002, commencing with closed session at 2:00 p.m. and open session
at the conclusion of the 3:00 p.m. City Council business session in the City Council Chambers,
78-495 Calle Tampico, CA 92253.
RDA Agenda -3- September 17, 2002
DECLARATION OF POSTING
I, June S. Greek, Secretary of the La Quinta Redevelopment Agency, do hereby declare that the
foregoing agenda for the La Quinta Redevelopment Agency meeting of Tuesday, September 17, 2002,
was posted on the outside entry to the Council Chambers, 78-495 Calle Tampico and on the bulletin
board at the La Quinta Chamber of Commerce and at Stater Bros. 78-630 Highway 1 1 1, on Friday,
September 13, 2002.
DATED: September 13, 2002
JUN S. GREEK, CIVIC
Agency Secretary, City of La Quinta, California
PUBLIC NOTICES
The La Quinta City Council Chamber is handicapped accessible. If special equipment is needed for the
hearing impaired, please call the City Clerk's Office at 777-7025, 24-hours in advance of the meeting
and accommodations will be made
RDA Agenda -4- September 17, 2002
TWY/ 4 4 QuAto
AGENDA CATEGORY:
BUSINESS SESSION
COUNCIL/RDA MEETING DATE: SEPTEMBER 17, 2002
CONSENT CALENDAR
ITEM TITLE:
STUDY SESSION
Demand Register Dated August 20, 2002 PUBLIC HEARING
RECOMMENDATION:
It is recommended the Redevelopment Agency Board:
Receive and File the Demand Register Dated August 20, 2002 of which $5,367,534.95
represents Redevelopment Agency Expenditures.
PLEASE SEE CONSENT CALENDAR ITEM NUMBER 1 ON CITY COUNCIL AGENDA
T4ht 4 4 Q"
COUNCIL/RDA MEETING DATE: SEPTEMBER 17, 2002
ITEM TITLE:
Demand Register Dated September 3, 2002
AGENDA CATEGORY:
BUSINESS SESSION
CONSENT CALENDAR
STUDY SESSION
PUBLIC HEARING
RECOMMENDATION:
It is recommended the Redevelopment Agency Board:
Receive and File the Demand Register Dated September 3, 2002 of which $207,636.12
represents Redevelopment Agency Expenditures.
PLEASE SEE CONSENT CALENDAR ITEM NUMBER 1 ON CITY COUNCIL AGENDA
Lrymmez, 0 Eff I P2,
COUNCIL/RDA MEETING DATE: SEPTEMBER 17, 2002
ITEM TITLE:
Demand Register Dated September 17, 2002
AGENDA CATEGORY:
BUSINESS SESSION
CONSENT CALENDAR
STUDY SESSION
PUBLIC HEARING
RECOMMENDATION:
It is recommended the Redevelopment Agency Board:
Receive and File the Demand Register Dated September 17, 2002 of which $116,729.42
represents Redevelopment Agency Expenditures.
PLEASE SEE CONSENT CALENDAR ITEM NUMBER 1 ON CITY COUNCIL AGENDA
T4tyl 4 4 Q"
COUNCIL/RDA MEETING DATE: September 17, 2002
ITEM TITLE:
Transmittal of Treasurer's Report
as of June 30, 2002 and July 31, 2002
RECOMMENDATION:
It is recommended the Redevelopment Agency Board:
Receive and file.
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
PLEASE SEE RELATED BUSINESS SESSION ITEM ON CITY COUNCIL AGENDA
Titit 4 4 Q"
AGENDA CATEGORY:
BUSINESS SESSION: _
COUNCIL/RDA MEETING DATE: September 17, 2002 CONSENT CALENDAR: 3
ITEM TITLE: STUDY SESSION:
PUBLIC HEARING:
Transmittal of Revenue and Expenditure
Reports dated June 30, 2002 and July 31, 2002
RECOMMENDATION:
Receive and File
BACKGROUND AND OVERVIEW:
Transmittal of the June 30, 2002 and July 31, 2002 Statements of Revenue and
Expenditures for the La Quinta Redevelopment Agency.
Respecffplly submitte
hn M. Falco0er, Finance Director
Approved for submission by -
Thomas P. Genovese, City Manager
Attachments 1 : Revenue and Expenditures and Report, June 30, 2002
2: Revenue and Expenditures and Report, July 31, 2002
ATTACHMENT 1
LA QUINTA REDEVELOPMENT AGENCY
REMAINING
%
REVENUE SUMMARY
BUDGET
RECEIVED
BUDGET
RECEIVED
PROJECTAREA NO..1_:
DEBT SERVICE FUND:
Tax Increment
16,822,503.00
17,953,948.93
(1,131,445.931
106.730%
Allocated Interest
118,612.08
(118,612.08)
0.000%
Non Allocated Interest
95,538.44
99,441.39
(3,902.95)
104.090%
Interst - County Loan
0.00
0.00
0.000%
Interest Advance Proceeds
446,142.00
0.00
446,142.00
0.000%
Transfers In
11,109,589.00
11,090,290.75
19,298.25
99.830%
TOTAL DEBT SERVICE
28,4731772.44
_29,262,293.15
(788 520.71) _
102 770%0
CAPITAL IMPROVEMENT FUND:
Pooled Cash Allocated Interest
39,661.10
(39,661.10)
0.000%
Non Allocated Interest
125,000.00
688,997.31
(563,997.31)
551.200%
Litigation Settlement Revenue
0.00
0.00
0.000%
Bond Proceeds
88,000,000.00
88,000,000.00
0.00
100.000%
Transfers In
0.00
0.00
0.000%
TOTAL CAPITAL IMPROVEMENT
88 125,000 00
88,728,658.41
(603,658.41)
100 690%_____
LOW/MODERATE TAX FUND:
Tax Increment
4,205,626.00
4,488,487.24
(282,861.24)
106.730%
Allocated Interest
50,000.00
36,663.88
13,336.12
73.330%
Non Allocated Interest
229,638.24
(229,638.24)
0.000%
Miscellaneous revenue
1.00
(1.00)
0.000%
Non Allocated Interest
0.00
0.00
0.000%
LQRP-Rent Revenue
341,000.00
321,144.66
19,855.34
94.180%
Home Sales Proceeds
150,000.00
146,603.10
3,396.90
97.740%
Sale of Land
0.00
0.00
0.000%
Sewer Subsidy Reimbursements
48,583.90
(48,583.90)
0.000%
Rehabilitation Loan Repayments
25,416.65
(25,416.65)
0.000%
Transfer In
0.00
0.00
0.000%
TOTAL LOW/MOD TAX
4,746,626.00
5,296,538.67
549 912.67)_11-1
590%0 _
LOW/MODERATE BOND FUND:
Allocated Interest
0.00
0.00
0.000%
Home Sale Proceeds
0.00
0.00
0.000%
Non Allocated Interest
62,674.10
(62,674.10)
0.000%
Transfer In
0.00
0.00
0.000%
TOTAL LOW/MOD BOND
0:00_
62,674.10
(62,674.10) __
0 000%0
LA QUINTA REDEVELOPMENT AGENCY
07/01/2001 - 06/30/2002
REMAINING
%
EXPENDITURE SUMMARY
BUDGET
EXPENDITURES
ENCUMBERED
BUDGET
EXPENDED
PROJECT_. AREA NO 1-
DEBT SERVICE FUND:
SERVICES
249,834.00
285,551.30
0.00
(35,717.30)
114.3 %
BOND PRINCIPAL
1,486,277.00
10,098,859.88
0.00
(8,612,582.88)
679.5%
BOND INTEREST
4,623,726.00
4,481,934.00
0.00
141,792.00
96.9%
INTEREST - ERAF LOAN
511,903.00
0.00
0.00
511,903.00
0.0%
INTEREST CITY ADVANCE
446,142.00
446,142.00
0.00
0.00
100.0%
INTEREST - ERAF LOAN
248,097.00
228,799.00
0.00
19,298.00
92.2%
PASS THROUGH PAYMENTS
16,759,956.00
8,194,448.65
0.00
8,565,507.35
48.9%
TRANSFERS OUT
0.00
0.00
0.00
0.0%
TOTAL DEBT SERVICE
24,325,935.00
- _ 23,735,734.83
0.00
590,200 17
97.60/
CAPITAL IMPROVEMENT FUND:
PERSONNEL
10,050.00
6,847.14
0.00
3,202.86
68.1%
SERVICES
191,079.00
196,775.93
0.00
(5,696.93)
103.0°%
SEWER ASSESSMENTS
50,000.00
0.00
0.00
50,000.00
0.0%
LAND ACQUISITION
0.00
0.00
0.00
0.00
0.0%
ASSESSMENT DISTRICT
0.00
0.00
0.00
0.00
0.0%
ECONOMIC DEVELOPMENT
339,558.00
53,793.78
0.00
285,764.22
15.8%
CAPITAL - BUILDING
0.00
0.00
0.00
0.00
0.0%
BOND ISSUANCE COSTS
3,577,801.40
3,549,821.19
0.00
27,980.21
99.2%
REIMBURSEMENT TO GEN FUND
1,085,485.00
1,085,481.48
0.00
3.52
100.0%
TRANSFERS OUT
58,611,734.00
54,289,301.78
0.00
4,322,432.22
92.6%
TOTAL CAPITAL IMPROVEMENT
63,865 707.40
_59,182,021.30
.__ 0.00
4,683,686.10
LOW/MODERATE TAX FUND:
PERSONNEL
10,050.00
6,847.14
0.00
3,202.86
68.1%
SERVICES
239,315.00
224,343.29
0.00
14,971.71
93.7%
ASSESSMENT SUBSIDY PROGRAM
445,000.00
116,015.27
0.00
328,984.73
26.1%
UNDERGROUND UTILITY SUBSIDY
71,000.00
0.00
0.00
71,000.00
0.0%
BUILDING HORIZONS
210,000.00
137,750.00
0.00
72,250.00
65.6%
LQ RENTAL PROGRAM
829,000.00
422,208.76
0.00
406,791.24
50.9%
LQ HOUSING PROGRAM
2,785,077.00
2,522,648.00
0.00
262,429.00
90.6%
LQ REHABILITATION
200,000.00
17,603.50
0.00
182,396.50
8.8%
APARTMENT REHABILITATION
350,000.00
73,589.42
0.00
276,410.58
21.0%
REIMBURSEMENT TO GEN FUND
206,366.00
206,365.92
0.00
0.08
100.0%
TRANSFERS OUT
3,951,649.00
1,737,006.27
0.00
2,214,642.73
44.0%
TOTAL LOW/MOD TAX
9,297,457.00
5,464,377.57
0.00
3,833,079 43
58 8%
LOW/MODERATE BOND FUND
PERSONNEL
0.00
0.00
0.00
0.0%
SERVICES
0.00
0.00
0.00
0.0%
REIMBURSEMENT TO GEN FUND
0.00
0.00
0.00
0.0%
HOUSING PROJECTS
0.00
0.00
0.00
0.0%
TRANSFERS OUT
832,930.46
832,930.46
0.00
0.00
100.0%
TOTAL LOW/MOD BOND
832,930.48
832,930.46
_ _- 0.00
0.00
_ 100.0%
LA QUINTA REDEVELOPMENT AGENCY
REVENUE SUMMARY
PROJECT AREA NO. 2:
DEBT SERVICE FUND:
Tax Increment
Allocated Interest
Non Allocated Interest
Interest Advance Proceeds
Transfer In
TOTAL DEBT SERVICE
CAPITAL IMPROVEMENT FUND:
Allocated Interest
Non Allocated Interest
Developer Agreement
Transfers In
Proceeds from City Loan
TOTAL CAPITAL IMPROVEMENT
LOW/MODERATE TAX FUND:
Tax Increment
Developer Funding
Allocated Interest
Non Allocated Interest
Sale of Land
Transfer In
TOTAL LOW/MOD TAX
LOW/MODERATE BOND FUND:
Allocated Interest
Non Allocated Interest
Transfer In
TOTAL LOW/MOD BOND
REMAINING %
BUDGET RECEIVED BUDGET RECEIVED
7,364,440.00
8,100,847.40
(736,407.40)
110.000%
28,370.60
(28,370.60)
0.000%
397.96
(397.96)
0.000%
692,211.00
0.00
692,211.00
0.000%
338,442.00
338,442.00
0.00
100.000%
8,395,093.00_
8,468,057.96 _
(72,964.96)
100870%
70,440.16
(70,440.16)
0.000%
20,000.00 2,181.23
17,818.77
10.910%
0.00
0.00
0.000%
0.00
0.00
0.000%
1,100, 000.00 0.00
1,100, 000.00
0.000%
1,120,000.00 72,621.39
1,047,378_61
6.480% ___- _
1,841,110.00 2,025,211.82
(184,101.82)
110.000%
0.00
0.00
0.000%
20,700.00 115,747.29
(95,047.29)
559.170%
0.00
0.00
0.000%
0.00
0.00
0.000%
0.00
0.00
0.000%
1,861,810.00 2,140,959.11
__ (279,149.1
114.990%
0.00
0.00
0.000%
16,963.20
(16,963.20)
0.000%
0.00
0.00
0.000%
0.00 16,963.20
_(16,963.20)
0.000% 000%
LA QUINTA REDEVELOPMENT AGENCY
07/01/2001 - 06/3012002
REMAINING
%
EXPENDITURE SUMMARY
BUDGET EXPENDITURES
ENCUMBERED
BUDGET
EXPENDED
PROJECT AREA NQ, 2:
DEBT SERVICE FUND:
SERVICES
94,120.00
123,146.00
0.00
(29,026.00)
130.8%
BOND PRINCIPAL
163,723.00
163,723.00
0.00
0.00
100.0%
BOND INTEREST
593,968.00
593,967.75
0.00
0.25
100.0%
INTEREST CITY ADVANCE
692,211.00
692,211.00
0.00
0.00
100.0%
INTEREST - ERAF LOAN
0.00
0.00
0.00
0.00
0.0%
PASS THROUGH PAYMENTS
6.257,252.00
6,258,950.83
0.00
(1,698.83)
100.0%
TRANSFERS OUT
0.00
0.00
0.00
0.00
0.0%
_._ _ _--
TOTAL DEBT SERVICE
7,801 274 00
7,831,998.58
_ 0.00
�,724 58)__
100.4°/a
CAPITAL IMPROVEMENT FUND:
PERSONNEL
5,950.00
4,143.66
0.00
1,806.34
69.6%
SERVICES
119,164.00
69,556.41
0.00
49,607.59
58.4%
ECONOMIC DEVELOPMENT ACTIVITY
130,072.00
118,864.90
4,870.00
6,337.10
91.4%
REIMBURSEMENT TO GEN FUND
34,092.00
34,090.68
0.00
1.32
100.0%
TRANSFERS OUT
1,353,442.00
1,481,875.38
0.00
(128,433.38)
109.5% -
TOTAL CAPITAL IMPROVEMENT
1,642,720.00
1.708,531.03
4,870.00
(70,681 OL
104.0%
LOW/MODERATE TAX FUND:
PERSONNEL
5,950.00
4,143.66
0.00
1,806.34
69.6%
SERVICES
159,959.00
389,506.19
0.00
(229,547.19)
243.5%
SEWER SUBSIDIES
85,000.00
16,846.64
0.00
68,153.36
19.8%
LQ RENTAL PROGRAM
949,923.00
53,525.00
0.00
896,398.00
5.6%
LOW MOD HOUSING PROJECTS
755,806.00
144,999.65
0.00
610,806.35
19.2%
REIMBURSEMENT TO GEN FUND
71,258.00
71,257.92
0.00
0.08
100.0%
TRANSFERS OUT
2,787,701.44
503,009.75
0.00
2,284,691.69
18.0%
TOTAL LOW/MOD TAX
4,815,597.44
1,183,288.81
- 0.00
3,632,308.63
-__24.6/0
LOW/MODERATE BOND FUND
PERSONNEL
0.00
0.00
0.00
0.0%
SERVICES
0.00
0.00
0.00
0.0%
REIMBURSEMENT TO GEN FUND
0.00
0.00
0.00
0.0%
TRANSFERS OUT
2,582,881.00
223,916.54
0.00
2,358,964.46
8.7% -
TOTAL LOW/MOD BOND
2,582,881.00
_ 223,916.54
0.00
2 3581964.46
8.7%
(I 1.3
��s
ATTACHMENT 2
LA QUINTA REDEVELOPMENT AGENCY
REVENUE SUMMARY
PROJECT AREA NO. 1:
DEBT SERVICE FUND:
Tax Increment
Allocated Interest
Non Allocated Interest
Interst - County Loan
Interest Advance Proceeds
Transfers In
TOTAL DEBT SERVICE
CAPITAL IMPROVEMENT FUND:
Pooled Cash Allocated Interest
Non Allocated Interest
Litigation Settlement Revenue
Loan Proceeds
Transfers In
TOTAL CAPITAL IMPROVEMENT
LOW/MODERATE TAX FUND:
Tax Increment
Allocated Interest
Non Allocated Interest
Miscellaneous revenue
Non Allocated Interest
LQRP-Rent Revenue
Home Sales Proceeds
Sale of Land
Sewer Subsidy Reimbursements
Rehabilitation Loan Repayments
Transfer In
TOTAL LOW/MOD TAX
LOW/MODERATE BOND FUND:
Allocated Interest
Home Sale Proceeds
Non Allocated Interest
Transfer In
TOTAL LOW/MOD BOND
REMAINING %
BUDGET RECEIVED BUDGET RECEIVED
18,048,724.00
0.00
18,048,724.00
0.000%
0.00
0.00
0.000%
3,250.45
(3,250.45)
0.000%
0.00
0.00
0.000%
490,757.00
0.00
490,757.00
0.000%
1,738,783.00
0.00
1,738,783.00
0.000%
20,278,264.00
3,250.45
20,275,013.55
0.020%
0.00
0.00
0.000%
125,000.00 91,492.23
33,507.77
73.190%
0.00
0.00
0.000%
0.00
0.00
0.000%
0.00
0.00
0.000%
125,000.00 91,492.23
33,507.77
73.190%
4,512,181.00
0.00
4,512,181.00
0.000%
200,000.00
0.00
200,000.00
0.000%
0.00
0.00
0.000%
0.00
0.00
0.000%
0.00
0.00
0.000%
341,000.00
31,848.00
309,152.00
9.340%
150,000.00
56,931.05
93,068.95
37.950%
0.00
0.00
0.000%
3,839.42
(3,839.42)
0.000%
313.06
(313.06)
0.000%
0.00
0.00
0.000%
5,203,181.00
92,931.53
5,110,249.47
1.790%
0.00
0.00
0.000%
0.00
0.00
0,000%
1,925.53
(1,925.53)
0.000%
0.00
0.00
0.000%
0.00 1,925.53
(1,925.53)
0.000%
(I UJ
QG7
LA QUINTA REDEVELOPMENT AGENCY
EXPENDITURE SUMMARY
PROJECT AREA NO. 1:
DEBT SERVICE FUND:
07/01/2002 - 07/31/2002 REMAINING %
BUDGET EXPENDITURES ENCUMBERED BUDGET EXPENDED
SERVICES
586,870.00
0.00
0.00
586,870.00
0.0%
BOND PRINCIPAL
1,567,022.00
0.00
0.00
1,567,022.00
0.0%
BOND INTEREST
6,991,075.00
0.00
0.00
6,991,075.00
0.0%
INTEREST CITY ADVANCE
490,757.00
40,896.49
0.00
449,860.51
8.3%
PASS THROUGH PAYMENTS
8,418,042.00
0.00
0.00
8,418,042.00
0.0%
TRANSFERS OUT
0.00
0.00
0.00
0.0%
TOTAL DEBT SERVICE
18,053,766.00
40,896.49
0.00
18,012,869.51
0.2%
CAPITAL IMPROVEMENT FUND:
PERSONNEL
SERVICES
LAND ACQUISITION
ASSESSMENT DISTRICT
ECONOMIC DEVELOPMENT
BOND ISSUANCE COSTS
CAPITAL - BUILDING
REIMBURSEMENT TO GEN FUND
TRANSFERS OUT
TOTAL CAPITAL IMPROVEMENT
LOW/MODERATE TAX FUND:
PERSONNEL
SERVICES
BUILDING HORIZONS
LQ RENTAL PROGRAM
LQ HOUSING PROGRAM
APARTMENT REHABILITATION
REIMBURSEMENT TO GEN FUND
TRANSFERS OUT
TOTAL LOW/MOD TAX
LOW/MODERATE BOND FUND
PERSONNEL
SERVICES
REIMBURSEMENT TO GEN FUND
HOUSING PROJECTS
TRANSFERS OUT
TOTAL LOW/MOD BOND
4,900.00
569.66
0.00
4,330.34
11.6%
214,379.00
5,997.00
0.00
208,382.00
2.8%
0.00
0.00
0.00
0.00
0.0%
0.00
0.00
0.00
0.00
0.0%
569,382.00
10,000.00
0.00
559,382.00
1.8%
199,880.00
16,459.51
0.00
183,420.49
8.2 %
0.00
0.00
0.00
0.00
0.0%
1,086,106.00
90,508B4
0.00
995,597.16
8.3%
9,315,509.77
37,638.54
0.00
9,277,871.23
0.4 %
11,390,156.77
161,173.55
0.00
11,228,983.22
1A
4,900.00
569.66
0.00
4,330.34
11.6 %
239,315.00
2,850.00
0.00
236,465.00
1.2 %
210,000.00
0.00
0.00
210,000.00
0.0%
829,000.00
40,788.94
0.00
788,211.06
4.9%
2,500,000.00
25,000.00
0.00
2,475,000.00
1.0%
626.000.00
0.00
0.00
626,000.00
0.0%
206,485.00
17,207.07
0.00
189,277.93
8.3%
3,953,426.00
0.00
0.00
3,953,426.00
0.0%
8,569,126.00
86,415.67
0.00
8,482,710.33
1.0%
0.00
0.00
0.00
0.0%
0.00
0.00
0.00
0.0°%
0.00
0.00
0.00
0.0%
0.00
0.00
0.00
0.0%
0.00
0.00
0.00
0.00
0.0%
0.00
0.00
0.00
0.00
0.0%
LA QUINTA REDEVELOPMENT AGENCY
REMAINING
%
REVENUE SUMMARY
BUDGET
RECEIVED
BUDGET
RECEIVED
PROJECT AREA NO. 2:
DEBT SERVICE FUND:
Tax Increment
7,585,373.00
0.00
7,585,373.00
0.000%
Allocated Interest
0.00
0.00
0.000%
Non Allocated Interest
0.00
0.00
0.000%
Interest Advance Proceeds
882,433.00
0.00
882,433.00
0.000%
Transfer In
338,895.00
0.00
338,895.00
0.000%
TOTAL DEBT SERVICE
8,806,701.00
0.00
8,806,701.00
0.000%
CAPITAL IMPROVEMENT FUND:
Allocated Interest
0.00
0.00
0.000%
Non Allocated Interest
20,000.00
1.03
19,998.97
0.010%
Developer Agreement
0.00
0.00
0.000%
Transfers In
0.00
0.00
0.000%
Proceeds from City Loan
1,100,000.00
0.00
1,100,000.00
0.000%
TOTAL CAPITAL IMPROVEMENT
1,120,000.00
1.03
1,119,998.97
0.000%
LOW/MODERATE TAX FUND:
Tax Increment
1,896,343.00
0.00
1,896,343.00
0.000%
Developer Funding
0.00
0.00
0.000%
Allocated Interest
20,700.00
0.00
20,700.00
0.000%
Non Allocated Interest
0.00
0.00
0.000%
Sale of Land
0.00
0.00
0.000%
Transfer In
0.00
0.00
0.000%
TOTAL LOW/MOD TAX
1,917,043.00
0.00
1,917,043.00
0.000%
LOW/MODERATE BOND FUND:
Allocated Interest
0.00
0.00
0.000%
Non Allocated Interest
514.32
(514.32)
0.000%
Transfer In
0.00
0.00
0.000%
TOTAL LOW/MOD BOND
0.00
514.32
(514.32)
0.000%
LA QUINTA REDEVELOPMENT AGENCY
EXPENDITURE SUMMARY
PROJECT AREA NO. 2:
DEBT SERVICE FUND:
SERVICES
BOND PRINCIPAL
BONDINTEREST
INTEREST CITY ADVANCE
PASS THROUGH PAYMENTS
TRANSFERS OUT
TOTAL DEBT SERVICE
07/01/2002 •07131/2002 REMAINING %
BUDGET_XPENDITURES ENCUMBERED BUDGET EXPENDED
161,020.00
0.00
0.00
161,020.00
0.0%
172,978.00
0.00
0.00
172,978.00
0.0%
586,665.00
0.00
0.00
586,665.00
0.0%
761,433.00
63,452.75
0.00
697,980.25
8.3%
6,440,423.00
0.00
0.00
6,440,423.00
0.0%
0.00
0.00
0.00
0.00
0.0%
8,122,519.00
63,452.75
0.00
8,059,066.25
0.8%
CAPITAL IMPROVEMENT FUND:
PERSONNEL
2,900.00
344.72
0.00
2,555.28
11.9%
SERVICES
158,774.00
2,112.00
0.00
156,662.00
1.3%
ECONOMIC DEVELOPMENT ACTIVITY
126,725.00
0.00
4,870.00
121,855.00
0.0%
REIMBURSEMENT TO GEN FUND
34,111.00
2,842.60
0.00
31,268.40
8.3 %
TRANSFERS OUT
(128,433.14)
0.00
0.00
(128,433.14)
0.0%
TOTAL CAPITAL IMPROVEMENT
194,076.86
5,299.32
4,870.00
183,907.54
2.7 %
LOW/MODERATE TAX FUND:
PERSONNEL
SERVICES
SEWER SUBSIDIES
LQ RENTAL PROGRAM
ADAMS 48TH PLANNING
LOW MOD HOUSING PROJECTS
REIMBURSEMENT TO GEN FUND
TRANSFERS OUT
TOTAL LOWIMOD TAX
LOW/MODERATE BOND FUND
PERSONNEL
SERVICES
REIMBURSEMENT TO GEN FUND
TRANSFERS OUT
TOTAL LOW/MOD BOND
2,900.00
344.72
0.00
2,555.28
11.9%
197,049.00
1,650.00
0.00
195,399.00
0.8%
0.00
0.00
0.00
0.0%
500,000.00
0.00
0.00
500,000.00
0.0%
50,000.00
0.00
0.00
50,000.00
0.0%
1,598,000.00
0.00
0.00
1,598,000.00
0.0%
71,298.00
5,941.49
0.00
65,356.51
8.3%
2,623,586.69
87,612.76
0.00
2,535,973.93
3.3%
5,042,833.69
95,548.97
0.00
4,947,284.72
1.9 %
0.00
0.00
0.00
0.0%
0.00
0.00
0.00
0.0%
0.00
0.00
0.00
0.0%
2,358,964.46 0.00
0.00
2,358,964.46
0.0%
2,358,964.46 0.00
0.00
2,358,964.46
0.0%
v�o
TWYI 4 4 Q"
COUNCIL/RDA MEETING DATE: September 17, 2002
ITEM TITLE:
Approval of an Appropriation of up to $15,000 from
Project Area No. 2 Low Mod Income Housing
Affordable Fund to Cure a Loan for an Agency
Affordability Covenant on a Home Located at 47-875
Silverberry
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Approve the appropriation of funds from the Project Area No. 2 Low Mod Housing
Fund in an amount not to exceed $15,000 and authorize Rosenow Spevacek Group
to act on the Agency's behalf to cure the loan.
FISCAL IMPLICATIONS:
The process to cure the loan will require an expenditure from the Project Area No. 2
Low Mod Housing Fund in an amount not to exceed $15,000 from the Unallocated
Fund Reserves (246-000-300-290). Adequate funds are available for the appropriation
and subsequent expenditure.
BACKGROUND AND OVERVIEW:
A Notice of Bankruptcy has been received notifying the Agency that the owners of the
single family home located at 47-875 Silverberry have filed bankruptcy. This house
was originally sold in November 1998, with a second trust deed amount of $8,719
to a moderate income household; this unit is part of the Miraflores project.
In order to protect the Agency's per unit investment of $86,000, the Agency needs
to cure the Senior Lienholder and, after court approval, start default and foreclosure
proceedings to acquire the property. If the Agency does not elect to cure the Senior
Lienholder, the affordability covenant would be extinguished.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Redevelopment Agency include:
(J s,
G:\WPDOCS\CC SO Rpts\RDABankYonek.wpd
Approve the appropriation of funds from the Project Area No. 2 Low Mod
Housing Fund in an amount not to exceed $15,000 and authorize Rosenow
Spevacek Group to act on the Agency's behalf to cure the loan; or
2. Do not approve the appropriation of funds from the Project Area No. 2 Low Mod
Housing Fund in an amount not to exceed $15,000 to cure the loan; or
3. Provide staff with alternative direction.
Respectfully submitted,
rry Human
immunity Development Director
Approved for submission by:
Thomas P. Genovese, Executive Director
G:\WPDOCS\CC Stf Rpts\RDABankYonek.wpd
c&4 4:FQ"
AGENDA CATEGORY:
BUSINESS SESSION:
COUNCIL/RDA MEETING DATE: September 17, 2002 CONSENT CALENDAR: 5
ITEM TITLE:
STUDY SESSION:
Approval of a One -Year Lease by and Between the La PUBLIC HEARING:
Quinta Redevelopment Agency and MDS Consulting
for Agency -Owned Property Located at 79-799 Old
Avenue 52
RECOMMENDATION:
That the Agency Board approve a one-year lease by and between the La Quinta
Redevelopment Agency and MDS Consulting for Agency -owned property located at
79-799 Old Avenue 52, and authorize the appropriate parties to execute
documents.
FISCAL IMPLICATIONS:
During the 12-month term of the lease, the Agency will receive approximately
$13,500 in net rental income. The lease is structured so that MDS Consulting
would be responsible for facility operational expenses (utilities, building and
landscape maintenance, and minor building repairs). The Agency would be
responsible for major building repairs.
CHARTER CITY IMPLICATIONS:
None.
BACKGROUND AND OVERVIEW:
MDS Consulting occupies a 1,670 square foot structure located on the Agency's
Ranch property. The company maintains offices in both La Quinta and Irvine, and
provides primarily civil engineering services at the La Quinta office. When the La
Quinta office was established, MDS worked exclusively for KSL Recreation. As
KSL land planning activities subsided, MDS provided civil engineering services for
clients throughout the Coachella Valley. The facility was once the Ahmanson
Ranch bull barn but was converted into office space in the early 1990's. MDS has
occupied these offices for the past five years and desires to continue at this
location until the final disposition of the facility is determined.
When the Agency acquired The Ranch, it inherited a month -to -month lease with
MDS. Staff subsequently initiated discussions with MDS regarding continuing their
occupancy and instituting a one-year lease. Staff recommends that the Agency
enter into a one-year lease with MDS because:
• the Agency does not have any immediate use for this structure that would
be better than having MDS continue their occupancy;
• the Agency is embarking on a master planning process that will determine
the disposition of this property during the next year;
• MDS is a viable tenant that desires to remain at this location; and
• MDS has assisted KSL Recreation on past planning efforts involving The
Ranch, and has a wealth of engineering data that could assist the Agency
with future planning activities.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Agency Board include:
1. Approve a one-year lease by and between the La Quinta Redevelopment Agency
and MDS Consulting for certain Agency -owned property located at 79-799 Old
Avenue 52, and authorize the appropriate parties to execute documents; or
2. Do not approve the one-year lease by and between the La Quinta
Redevelopment Agency and MDS Consulting, and do not authorize the
appropriate parties to execute documents; or
3. Provide staff with alternative direction.
Respectfully submitted,
Mark Weiss, Assistant Executive Director
g:k'sdoc/mw/mdsconsent91702
Approved for submission by:
Thomas P. Genovese, Executive Director
Attachment: 1 . Lease Agreement
003
g: k'sdoc/mw/mdsconsent91702
ATTACHMENT 1
LEASE AGREEMENT
BULL BARN
THIS LEASE AGREEMENT (the "Lease") is made effective the day of
2002 (the "Effective Date"), by and between THE LA QUINTA
REDEVELOPMENT AGENCY, a public body, corporate and politic ("Landlord") and MDS
CONSULTING, a California corporation, whose principal place of business is located at 17320
Redhill Avenue, Suite 350, Irvine, California 92614 ("Tenant").
RECITALS
A. Landlord is the owner of that certain real property located in the City of La
Quinta, County of Riverside, State of California, more commonly known as 79-799 Old Avenue
52, located in the City of La Quinta, County of Riverside, State of California and more
particularly set forth in Exhibit "A", attached hereto and incorporated herein (the "Land"); and
(ii) certain improvements on the Land consisting of a building containing 1,670 square feet of
space, commonly known as the "Ahmanson Ranch Bull Barn", located on the Land, and the non-
exclusive right to use in common with others, various associated parking areas, driveways and
walkways on the Land (the "Improvements"). The Land and the Improvements may hereinafter
be referred to together as the "Leased Premises" and the Leased Premises are more particularly
depicted on Exhibit `B", attached hereto and incorporated herein.
B. Tenant is engaged in the business of mapping, surveying and other land planning
services.
C. Landlord desires to lease to Tenant and Tenant desires to lease from Landlord the
Leased Premises on the terms and conditions hereinafter set forth.
AGREEMENT
NOW, THEREFORE, in consideration of the mutual agreements set forth herein,
Landlord and Tenant agree as follows:
ARTICLE I
Leased Premises
1.1 Leased Premises. Landlord hereby leases to Tenant, and Tenant hereby leases
from Landlord, the Leased Premises, together with the right to use in common with others the
parking areas, driveways and walkways located on the Land, upon the terms and conditions
stated in this Lease. Tenant hereby covenants and warrants that Tenant shall comply with all
applicable laws, rules and regulations, including, without limitation, Landlord's and the City of
La Quinta's rules and regulations, in connection with its operations on the Land.
619/015610-0048 �
304265.06 AM02 li 0 J
1.2 Conditions of Leased Premises; "AS -IS" Provision. Tenant acknowledges that it
has had an adequate opportunity to inspect the Leased Premises and to investigate its physical
characteristics and conditions, and hereby waives any and all objections to the physical
characteristics and conditions of the Leased Premises. Tenant acknowledges that Landlord has
not made any representations, warranties or agreements to or with Tenant as to any matters
concerning the Leased Premises, the present use thereof, or the suitability of Tenant's intended
use of the Leased Premises. The foregoing disclaimer includes, without limitation, topography,
climate, air, water rights, utilities, present and future zoning, soil, subsoil, existence of hazardous
waste or similar substances, purposes to which the Leased Premises is suited, drainage or access
to public roads. Tenant further acknowledges and agrees that the Leased Premises is to be leased
and accepted by Tenant in its present condition, "AS -IS", and that no patent or latent physical
condition of the Leased Premises, whether or not known or discovered, shall affect the rights of
either party hereto. Tenant has investigated and has knowledge of operative or imposed
governmental laws and regulations (including, but not limited to, zoning, environmental,
including specifically the regulations of the Environmental Protection Agency, and land use laws
and regulations) to which the Leased Premises may be subject, and is leasing the Leased
Premises on the basis of its review and determination of the application and effect of such laws
and regulations. Tenant has neither received nor relied upon any representations concerning
such laws and regulations made by Landlord or any person acting under or on behalf of
Landlord. Any agreements, warranties or representations not expressly contained in this Lease
shall in no way bind Landlord.
1.3 "Post -Acquisition" Status of Tenant. Tenant acknowledges that it is a post -
acquisition tenant, and that further acknowledges that the Landlord plans to redevelop the subject
property. Tenant hereby waives, relinquishes, and discharges any and all rights or claims for
relocation assistance or related benefits or loss of goodwill under any applicable law, including,
but not limited to California Government Code Section 7260 et seq. and the State Relocation
Assistance and Real Property Acquisition, 25 C.F.R. 6000 et seq., or the comparable federal
relocation laws and regulations, or for inverse condemnation.
ARTICLE II
Lease Term
2.1 Term. The Term of this Lease shall commence on October 1, 2002 and shall end
on August 31, 2003, unless sooner terminated as provided herein (the "Term"). Notwithstanding
the foregoing and anything contained herein to the contrary, Landlord shall have the right to
terminate this Lease, with or without cause, by providing Tenant with thirty (30) days written
notice to cancel. Upon such termination, Tenant shall surrender the Leased Premises, in
accordance with the provisions contained in Section 8.1 hereof, no later than the effective date of
termination.
619/015610-0048 -2_ �f i�
304265.06 AM02 i V
ARTICLE III
Rent and Operating Expenses
3.1 Rent. Beginning October 1, 2002 and continuing throughout the Term, Tenant
shall pay to Landlord Net Rent in the amount of One Thousand Thirty Two and 40/100 Dollars
($1,132.40) (the "Net Rent") at Landlord's address as provided by Section 15.7 below. Net Rent
and Deductible Operating Expenses for any period during the term hereof which is for less than
one full calendar month shall be prorated based upon the actual number of days of said month.
Lessee shall pay to Landlord the Net Rent in advance on the first (1") day of each month without
notice or demand from Landlord.
Landlord and Lessee hereby acknowledge and agree that the Net Rent is
calculated based on the following calculations. The monthly "Gross Rent" equals the product of
One Dollar and Thirty Cents ($1.30) for every square foot of Leased Premises, for a total of Two
Thousand One Hundred Seventy One Dollars ($2,171.00). The "Net Rent" is equal to the sum of
the Gross Rent, minus Deductible Operating Expenses (as hereinafter defined). Tenant shall be
entitled to deduct from the monthly Gross Rent payable to Landlord those Deductible Operating
Expenses reasonably expended by Tenant for electricity, solid waste disposal, pest control,
landscaping, and weekly cleaning expenses (collectively, "Deductible Operating Expenses"), in
an amount not to exceed One Thousand Thirty Eight and 60/100 Dollars ($1,038.60).
Accordingly, Net Rent equals the sum of $2,171.00, minus $1,038.60, or the amount of
$1,132.40.
3.2 Late Charges. Tenant hereby acknowledges that late payment by Tenant of Net
Rent will cause Landlord to incur costs not contemplated by this Lease, the exact amount of
which will be extremely difficult to ascertain. Such costs include, but are not limited to,
processing and accounting charges, and late charges which may be imposed upon Landlord by
any lender. Accordingly, if any Net Rent shall not be received by Landlord within fifteen (15)
days after such amount shall be due, then, without any requirement for notice by Landlord,
Tenant shall pay to Landlord a one-time late charge equal to ten percent (10%) of each such
overdue amount or One Hundred Dollars ($100.00), whichever is greater. The parties hereby
agree that such late charge represents a fair and reasonable estimate of the costs Landlord will
incur by reason of such late payment. Acceptance of such late charge by Landlord shall in no
event constitute a waiver of Tenant's default or breach with respect to such overdue amount, nor
prevent the exercise of any other rights or remedies granted hereunder. In the event a late charge
is payable hereunder, whether or not collected, for three (3) consecutive installments of Net
Rent, then notwithstanding any other provision of this Lease to the contrary, Gross Rent, shall, at
Landlord's option, become due and payable quarterly in advance, with subsequent abatement of
Deductible Operating Expenses.
3.3 Operating Expenses. Tenant shall be responsible for payment of any and all
costs, charges and expenses for all utilities and related services provided to or for the Leased
Premises, whether billed directly or indirectly to Tenant or Landlord including, but not limited
to, telephone, water, gas, electricity, cable television, landscaping, cleaning expenses, solid waste
disposal, and pest control (collectively, the "Operating Expenses"). In addition to the indemnity
619/015610-0048 _3_ f1
304265.06 AM02 007
provided to Landlord in Section 14.1 herein, Tenant shall indemnify and hold Landlord harmless
from and against any loss, cost, charge, expense or damage with respect thereto.
3.4 Personal Property Taxes; Possessory Interest Tax. During the Term, Tenant shall
pay all taxes assessed against and levied upon fixtures, furnishings, equipment, and all other
personal property of Tenant contained on the Land or in the Leased Premises prior to
delinquency, and when possible Tenant shall cause these fixtures, furnishings, equipment, and
other personal property to be assessed and billed separately from the real property of Landlord.
If any of Tenant's fixtures, furnishings, equipment, and other personal property is assessed and
taxed with Landlord's real property, Tenant shall pay to Landlord Tenant's share of the taxes
within ten (10) days after delivery to Tenant by Landlord of a statement in writing setting forth
the amount of the taxes applicable to Tenant's property. Furthermore, in accordance with
California Revenue & Taxation Code § 107.6, Tenant hereby acknowledges that the possessory
interest granted herein may be a taxable interest and, Tenant's obligations with respect to the
payment of any and all costs associated with Tenant's use of the Leased Premises shall include,
without limitation, the obligation to pay any such possessory interest tax.
3.5 Landlord Contact Person. During the Term, Tenant shall direct all questions,
concerns, and correspondence regarding repairs or other issues relating to this Lease to
Landlord's representative, Frank J. Spevacek, at the address set forth in Section 15.7 herein.
ARTICLE IV
Occupancy
4.1 Quiet Enjoyment. Provided that no default or condition described in Section 13.1
has occurred and is continuing, and subject to performance by Tenant of all of the covenants and
provisions of this Lease to be performed by Tenant, Tenant shall have during the Term peaceful
and quiet use and possession of the Leased Premises without hindrance on the part of Landlord.
4.2 Use of Leased Premises. Tenant may use the Leased Premises for general office
purposes and for no other purpose unless approved in writing by Landlord, which approval may
be granted or denied in Landlord's sole and absolute discretion.
4.3 Compliance with Law. Tenant shall not at any time use or occupy the Leased
Premises, or permit any act or omission in or about the Leased Premises in violation of any law,
statute, ordinance or any governmental rule, regulation or order (collectively, "Law") and Tenant
shall, upon written notice from Landlord, discontinue any use of the Leased Premises or the
Land which is a violation of Law. At all times during the Term, at Tenant's own expense,
Tenant shall conform to and comply with the Law and any requirements of applicable insurance
policies now or hereafter in force, affecting the use or occupancy of all or any part of the Leased
Premises or the Land. Without limiting the foregoing, there shall be no discrimination against or
segregation of any person or group of persons on account of race, color, creed, religion, sex,
marital status, national origin, or ancestry in the use, occupancy, tenure, or enjoyment of the
Leased Premises, nor shall Tenant, or any person claiming under or through Tenant, establish or
permit any such practice or practices of discrimination or segregation with reference to the
selection, location, number, use, or occupancy of any persons in the Leased Premises.
619/015610-0048 (� (1
304265.06 AM02 -4- 1 0 8
4.4 Hazardous Materials. As used herein, the term "Hazardous Material" means any
hazardous or toxic substance, material or waste which is or becomes regulated by any local
governmental authority, the State of California or the United States Government, including,
without limitation, (i) any material or substance which is defined or listed as a "hazardous waste,
extremely hazardous waste, restricted hazardous waste," "hazardous substance" or "hazardous
material" under any federal, state or local law, statute, ordinance or any governmental rule,
regulation or order governing or in any way relating to the release, use, generation, handling,
leakage, dumping, discharge or disposal of any of the above (collectively, "Hazardous Material
Laws") (ii) petroleum or any petroleum derivative, (iii) any flammable explosive or radioactive
material, (iv) any polychlorinated biphenyl and (v) asbestos or any asbestos containing material
or derivative. Tenant hereby agrees that (i) Tenant and each of its affiliates, assignees,
subtenants, and their respective agents, servants, employees, representatives and contractors shall
not bring onto the Leased Premises or the Land any Hazardous Material, (ii) Tenant shall
immediately notify Landlord in writing in the event Tenant becomes aware of or suspects that
there has been any release of any Hazardous Material in, on or about the Leased Premises or the
Land or that any person has stored or otherwise brought onto the Leased Premises or the Land or
any portion thereof any Hazardous Material. Tenant agrees to indemnify, defend (with counsel
reasonably approved by Landlord), protect and hold Landlord and each of its affiliates, and each
and every officer, director, employee, attorney, agent and representative of Landlord
(collectively, the "Landlord Parties") harmless from and against any and all claims, actions,
administrative proceedings (including informal proceedings), judgments, damages to person or
property, punitive damages, penalties, fines, costs, liabilities, interest or losses, including
reasonable attorneys' fees and expenses, consultant fees, and expert fees, together with all other
costs and expenses of any kind or nature (hereinafter collectively "Claims") resulting directly or
indirectly from or in connection with the presence, handling, storage, release or discharge of any
Hazardous Material that (i) first occurred after Landlord's delivery of possession of the Leased
Premises to Tenant and prior to expiration or sooner termination of the Lease term; or (ii) was
caused or contributed to by Tenant, its affiliates and/or their respective agents, servants,
employees, representatives and/or contractors. Each of the covenants and agreements of the
parties set forth in this Section 4.4 shall survive the expiration or earlier termination of this
Lease.
4.5 Conduct on Leased Premises. Tenant shall not do, or permit anything to be done,
in or on the Leased Premises, which in any way will (a) increase the rate of fire insurance on the
Leased Premises; (b) invalidate or conflict with the fire insurance policies on the Leased
Premises or fixtures or on personal property kept therein; (c) obstruct or interfere with the rights
of Landlord or Landlord's other tenants on the Land; (d) subject Landlord to any liability for
injury to persons or damage to property; or (e) interfere with the good order of the Leased
Premises or the Land.
4.6 Leased Premises - Loss, Damage. Landlord shall not be liable under this Lease to
Tenant for injuries to person or damage to property occurring an the Land and the Leased
Premises or to any persons thereon, including, without limitation: (a) a loss of property by theft
or burglary, including property placed in the custody of Landlord's employees; (b) damage or
injury to person or property on the Leased Premises from the use of any utility on the Leased
Premises; (c) any damage or injury caused by action of the natural elements; or (d) damage or
injury resulting from (i) the conduct of Tenant, Tenant's contractors, licensees or invitees,
619/015610-0048
304265.06 AM02 -5
whether negligent or otherwise, or (ii) any other act, event or occurrence in or about the Leased
Premises other than the grossly negligent or intentional acts of Landlord or Landlord's
employees, contractors, licensees or invitees. Tenant shall not make any claim against Landlord
for any loss or damage described in this Section.
ARTICLE V
Trnn c ferc
5.1 Assignment and Subletting. Tenant shall not have the right to sublet the Leased
Premises, or any portion thereof, or to assign or mortgage Tenant's interest in this Lease, or any
portion thereof, without the prior written consent of Landlord, which consent may be withheld in
Landlord's sole and absolute discretion. In the case of any such subletting or assignment
approved by Landlord, Tenant shall remain fully obligated to Landlord for the performance of all
terms and conditions of this Lease. Notwithstanding the foregoing, Landlord may, without
Tenant's consent, assign this lease to any of its affiliates, successors or assigns.
ARTICLE VI
Parkin
6.1 Parkin . Tenant's lease of the Leased Premises includes the non-exclusive right
to use, in common with others, the adjacent automobile parking areas, driveways, access roads
and footways.
ARTICLE VII
Maintenance and Alterations
7.1 Maintenance by Tenant. Tenant, at its expense, will be responsible for the routine
maintenance and upkeep of the Leased Premises, including but not limited to, maintenance of
indoor sprinklers, plumbing, HVAC equipment and other appliances, electrical, lighting facilities
(including the replacement of light bulbs), boilers, pressure vessels, fixtures, interior walls,
interior surfaces of exterior walls, ceilings, floors, windows, doors, plate glass, skylights, and
other minor building repairs. In addition, Tenant shall paint the exterior or interior surfaces of
exterior walls, when necessary, as determined by Landlord in its reasonable discretion. Tenant
shall keep the Leased Premises in good and clean order and reasonable condition, fit for its
intended use. Tenant will not do, and will take reasonable steps to prevent Tenant's employees,
contractors, invitees and guests from doing, any act or things which might in any manner impair
the value or usefulness of the Leased Premises or any part thereof, or commit or permit any
waste of the Leased Premises or any part thereof.
7.2 Maintenance by Landlord. Landlord agrees to make all major repairs to the
Leased Premises, including maintenance of the foundations, exterior walls, structural condition
of interior bearing walls, exterior roof, fire sprinkler system, fire alarms and smoke detection
systems not located on or in the Leased Premises, fire hydrants, parking lots, walkways,
replacement of HVAC and utility systems, repair of the well and septic system, and other major
619/015610-0048 _ 0r1 O
304265.06 AM02 -6
building repairs beyond normal maintenance, to be determined by Landlord in its reasonable
discretion. Notwithstanding the foregoing, any major repair that is necessitated by the negligent
or intentional act(s) of Tenant, its affiliates, invitees, guests, agents, employees, or contractors
shall be repaired or maintained by Tenant or its designee at Tenant's sole cost and expense. If
Tenant does not commence and complete such repairs within a reasonable time frame, Landlord
may commence, continue, or complete such repairs at Tenant's cost and expense, payable by
Tenant upon demand therefor by Landlord.
7.3 Alterations by Tenant. Tenant may not make any additions, alterations or changes
to the Leased Premises without the prior written consent of Landlord, which consent may be
withheld in Landlord's sole and absolute discretion.
ARTICLE V1II
Surrender of Leased Premises
8.1 Surrender. Upon expiration of the Term, or any earlier termination of this Lease,
Tenant shall surrender to Landlord the Leased Premises, including all alterations, improvements
and other additions made by Landlord or Tenant, in good order, condition, and repair, reasonable
wear and tear excepted. Notwithstanding the foregoing, upon Landlord's written request
therefor, which request will itemize the articles to be removed, Tenant shall at Tenant's expense
promptly remove or cause to be removed from the Leased Premises or the Land all debris, along
with only those articles of furniture, equipment, and trade fixtures, free-standing cabinet work
and other articles of any other persons claiming under Tenant, itemized on Landlord's written
request for removal, subject to the provisions of Section 8.2 below. Tenant shall repair all
damage to the Leased Premises or the Land resulting from such removal, which repair shall
include the patching and filling of holes and repair of structural damage. In the event that Tenant
shall fail to comply with the provisions of this Section 8.1, Landlord may make such repairs and
the cost thereof shall be payable by Tenant upon demand. If requested by Landlord, Tenant shall
execute, acknowledge and deliver to Landlord an instrument in writing releasing and
quitclaiming to Landlord all right, title and interest of Tenant in and to the Leased Premises by
reason of this Lease or otherwise.
8.2 Affixed Property. All fixtures, equipment, alterations, additions, improvements
and/or appurtenances attached to or built into the Leased Premises prior to or during the term
hereof, whether by Landlord at its expense or at the expense of Tenant or both, shall be and
remain part of the Leased Premises and shall belong to Landlord unless otherwise expressly
provided for in this Lease or unless such removal is required and designated in writing by
Landlord pursuant to the provisions of Section 8.1 hereof. Such fixtures, equipment, alterations,
additions, improvements and/or appurtenances shall include, without limitation, floor coverings,
drapes, paneling, molding, built-in cabinets, doors, vaults, (exclusive of vault doors), plumbing,
electrical communications and lighting systems, silencing equipment, all fixtures and outlets for
the systems mentioned above and for all telephone, radio, telegraph and television purposes, and
any special flooring or ceiling installations.
8.3 Hold -Over. Tenant shall have no right to occupy the Leased Premises or any
portion thereof after expiration of this Lease or Tenant's right to possession of the Leased
619/015610-0048 n
304265.06 AM02 -7 Oil l
Premises. In the event Tenant or any party claiming by, through or under Tenant, retains
possession of the Leased Premises after the expiration or earlier termination of this Lease, such
possession shall constitute and be construed as a tenancy at will only, subject, however, to all of
the terms, provisions, covenants and agreements of Tenant hereunder. Tenant or any such party
shall pay Landlord, as rent for the entire period of any hold -over tenancy, One Hundred Dollars
($100) per day. In the event of such hold -over, Landlord may immediately exercise all remedies
available to Landlord at law or in equity to recover possession of the Leased Premises and for
damages. Tenant shall be liable to Landlord for any loss or damage Landlord may sustain by
reason of Tenant's failure to surrender possession of the Leased Premises immediately upon the
expiration or termination of this Lease. If Tenant shall fail to surrender possession of the Leased
Premises immediately upon the expiration or earlier termination of this Lease, Tenant hereby
agrees that all the obligations of Tenant and all rights of Landlord applicable during the term of
this Lease shall be equally applicable during such period of subsequent occupancy, whether or
not a tenancy shall have been created as aforesaid.
ARTICLE IX
Liens
9.1 Lien. Tenant warrants that no person or entity furnishing any improvement,
fixture, equipment or facilities in connection with any improvement or construction within or on
the Leased Premises shall have any right to a lien upon the Leased Premises or the Land by
virtue of any security interest in such improvement, fixture, equipment or facilities. Tenant shall
promptly cause any claim, stop notice, lis pendens, lien or claim of lien asserted against Landlord
or the Leased Premises or the Land by reason of the furnishing of any improvement, fixture,
equipment or facilities in connection with any improvement or construction within or on the
Leased Premises or the Land, or any activity of Tenant, to be promptly discharged or paid.
Tenant shall defend, indemnify and hold harmless Landlord from and against any such claim,
stop notice, lis pendens, lien or claim of lien.
ARTICLE X
Insurance
10.1 Tenant's Insurance.
(a) Types. Tenant, at no cost and expense to Landlord, shall procure and keep
in full force and effect during the Term or case to be procured and kept in full force and effect
for the mutual benefit of Landlord and Tenant, insurance policies meeting the minimum
requirements set forth below or such greater requirements that are generally obtained from time
to time for properties, improvements, activities, and operations similar to those on the Leased
Premises in the Southern California area:
(i) comprehensive general liability insurance with respect to the
Leased Premises and the operations of or on behalf of Tenant or its agents, officers, directors,
and employees in, on or about the Leased Premises in an amount not less than One Million
Dollars ($1,000,000) per occurrence combined single limit bodily injury, personal injury, death
619/015610-0048 304265.06 AM02 -g 02
and property damage liability per occurrence, subject to such increases in amount as Landlord
may reasonably require from time to time. Coverage shall include, but not be limited to personal
injury liability, premises and operation, blanket contractual, cross liability, severability of
interest, broad form property damage, and independent contractors. The policy or policies shall
include that Landlord and its officers, employees, and agents shall be additional insureds under
such policy or policies;
(ii) worker's compensation coverage as required by the laws of the
State of California together with employer's liability coverage;
(iii) with respect to the improvements, fixtures, furnishings, equipment
and other items of personal property location on or in the Leased Premises, insurance against
fire, peril of flood, extended coverage, vandalism and malicious mischief, and such other
additional perils, hazards and risk as now are or may be included in standard "all risk" forms in
general use in Riverside County, California, for an amount equal to not less than the full current
actual replacement cost thereof. Landlord shall be an additional insured under such policy or
policies and such insurance shall contain a replacement cost endorsement.
(b) Standard. All policies of insurance required to be carried by Tenant under
this Lease shall be written by responsible and solvent insurance companies authorized to do
business in the State of California. Any such insurance required of Tenant hereunder may be
furnished by Tenant under any blanket policy carried by it or under a separate policy therefor. A
copy of each paid -up policy evidencing such insurance (appropriately authenticated by the
insurer) or a certificate of the insurer, certifying that such policy has been issued, providing the
coverage required by this Section and containing provisions specified herein, shall be delivered
to Landlord prior to the date Tenant is given the right of possession of the Leased Premises or as
Landlord may otherwise require, and upon renewals, not less than thirty (30) days prior to the
expiration of such coverage. Landlord may, at any time, and .from time to time, inspect and/or
copy any and all insurance policies required to be procured by Tenant hereunder. In no event
shall the limits of any policy by considered as limiting the liability of Tenant under this Lease.
(c) Specific Provisions in Policy. Each policy evidencing insurance required
to be carried by Tenant pursuant to this Article shall contain the following provisions or clauses:
(i) a provision that the insurer will not cancel or materially change the
coverage provided by such policy without first giving Landlord thirty (30) days prior written
notice; and
(ii) a waiver by the Tenant's insurer of any right to subrogation against
Landlord, its agents, employees or representatives which arises or might arise by reason of any
payment under such policy or policies or by reason of any act or omission of Landlord, its
agents, employees or representatives.
(d) Landlord's Substitute Performance. In the event that Tenant fails to
procure, maintain and/or pay for at the times and for the durations specified in this Section, any
insurance required by this Section, or fails to carry insurance required by law or governmental
regulation, Landlord may (but without obligation to do so) at any time or from time to time, after
. A 3
619/015610-0048 -9- IJ
304265.06 AM02
thirty (30) days written notice to Tenant, procure such insurance and pay the premiums therefor,
in which event Tenant shall repay Landlord all sums so paid by Landlord together with interest
thereon as provided elsewhere herein, within fifteen (15) days following Landlord's written
demand to Tenant for such payment.
ARTICLE XI
Eminent Domain
11.1 Total Taking. If the entire Leased Premises be taken under the power of eminent
domain or by purchase in place thereof (herein together called "Eminent Domain"), this lease
shall terminate as of the date possession is taken.
11.2 Partial Taking. If any portion of the Leased Premises shall be taken under the
power of eminent domain, and the remaining portion would not, in the reasonable judgment of
Tenant be adequate for the continued occupancy of the Leased Premises, either unrestored or
restored, or if Tenant deems such restoration to be impractical, Tenant may terminate this Lease
immediately by giving notice thereof to Landlord within thirty (30) days after such taking. If
this Lease is not terminated pursuant to this Section 11.2, Landlord shall have no obligation to
restore the Leased Premises, and Tenant shall continue to pay rent in full and to utilize the
Leased Premises.
11.3 Damages. All damages awarded for any such taking under the power of eminent
domain shall be paid to Landlord, except damages, if any, specifically allocated by the
condemning authority, for fixtures and equipment of Tenant used in operation of the Leased
Premises.
11.4 Rent. If Tenant elects to terminate this Lease as provided by this Article, Tenant
shall pay Rent up to the date that possession is taken by the condemning authority, and Landlord
shall make a proportional refund to Tenant of any Rent paid by Tenant which is applicable to any
period after that date and not yet earned.
ARTICLE XII
Casualty
1.2.1 Casualty to Leased Premises.
(a) Definitions.
(i) "Leased Premises Partial Damage" shall mean damage or
destruction to the Leased Premises, the repair of which will cost $5,000.00 or less, as determined
by Landlord.
(ii) "Leased Premises Total Destruction" shall mean damage or
destruction to the Leased Premises, the repair of which will cost more than $5,000.00 as
reasonably determined by Landlord.
619/015610-0048 10- 014
304265.06 "02 _
(iii) "Insured Loss" shall mean damage or destruction to the Leased
Premises where full insurance proceeds are paid to Landlord.
(b) Partial Damage. If a Leased Premises Partial Damage occurs, then
Landlord shall repair such damage as soon as reasonable possibly and this Lease shall continue
in full force and effect. Tenant shall pay any deductibles payable in connection with such Loss.
(c) Total Destruction -Insured Loss. If a Leased Premises Total Destruction
that is an Insured Loss occurs, either party may cancel this Lease by delivery of a Notice to the
other party within sixty (60) days of the occurrence of such event, effective as of the date of such
Notice. If neither party cancels this Lease, then such Total Destruction shall be deemed a Leased
Premises Partial Damage and the repair of the Leased Premises shall be governed by the terms of
Paragraph 12.1(b) above.
(d) Total Destruction -Uninsured Loss. If a Leased Premises Total Destruction
that is not an Insured Loss occurs, either party may cancel this Lease by delivery of a Notice to
the other party within sixty (60) days of the occurrence of such event, effective as of the date of
such Notice. If neither party cancels this Lease, then Landlord shall commence to repair such
damage as soon as reasonably possible thereafter at Landlord's expense, in which event this
Lease shall continue in full force and effect. In the event Landlord elects to give Notice of
Landlord's intention to terminate this Lease, Tenant shall have the right within ten (10) days
after the receipt of such Notice to give written notice to Landlord of Tenant's commitment to pay
Or the repair of such damage totally at Tenant's expense and without reimbursement from
Landlord. Tenant shall provide Landlord with the required fiends or satisfactory assurance
thereof within thirty (30) days following Tenant's said commitment. In such event this Lease
shall continue in full force and effect, and Landlord shall proceed to make such repairs as soon as
reasonably possible. If Tenant does not give such Notice and provide the funds or assurance
thereof within the times specified above, this Lease shall terminate as of the date specified in
Landlord's Notice of termination.
12.2 Abatement.
(a) In the event of damage where this Lease is not terminated, whether or not
Landlord or Tenant repairs or restores the Leased Premises, the Rent and other charges, if any,
payable by Tenant hereunder shall be abated in proportion to the degree to which Tenant's use of
the Leased Premises is impaired for the period during which such damage, its repair or the
restoration continues. Except for abatement of Rent and other charges, if any, as aforesaid, all
other obligations of Tenant hereunder shall be performed by Tenant with respect to the
undamaged portions of the Leased Premises. Tenant shall have no claim against Landlord for
any damage suffered by reason of any such repair or restoration, except for claims arising from a
default by Landlord in the performance of its. repair and restoration obligations.
(b) If Landlord shall be obligated to or elects to repair or restore the Leased
Premises under the provisions of Section 12.1 and shall not commence the repair or restoration
of the Leased Premises within forty-five (45) days after such obligation shall accrue, or the repair
and restoration work is not completed within ninety (90) days of the date of the casualty, Tenant
may, at any time prior to the commencement of such repair or restoration, as the case may be,
619/015610-0049 013
304265.06 A-M02 -1 1-
give Notice to Landlord and to any lenders of which Tenant has actual notice of Tenant's
election to terminate this Lease, effective as of the date of such Notice. "Commencement" as
used in this Paragraph shall mean the beginning of the actual constriction work on the Leased
Premises.
12.3 Waiver of Statutory Rights. Landlord and Tenant agree that the terms of this
Lease shall govern the effect of any damage to or destruction of the Leased Premises with
respect to the termination of this Lease and hereby waive the provisions of any present or future
statute (including without limitation Sections 1931,1932 and 1933 of the California Civil Code
and any successor statutes) to the extent inconsistent herewith.
ARTICLE XI1I
Defaults and Remedies
13.1 Events of Default. An event of default (an "Event of Default") shall occur under
this Lease if:
(a) Tenant shall fail to perform any of the terms, conditions or covenants of
this Lease to be observed or performed by Tenant and such failure shall continue for more than
thirty (30) days after Landlord gives Tenant Notice thereof, unless such default is of a nature that
it cannot practically be cured within such thirty (30) day period but can be cured within a
reasonable time but in no event later than ninety (90) days, and Tenant is proceeding with due
diligence to cure such default;
(b) the abandonment of the Leased Premises; or the vacating of the Leased
Premises without providing a commercially reasonable level of security, or where the coverage
of the property insurance described in Section 10.1 herein is jeopardized as a result thereof, or
without providing reasonable assurances to minimize potential vandalism; or
(c) the occurrence of any of the following events: (a) the making of any
general assignment for the benefit of creditors; (b) becoming a "debtor" as defined in 11 U.S.C.
Section 101 or any successor statute thereto (unless, in the case of a petition filed against Tenant,
the same is dismissed within sixty (60) days; (c) the appointment of a trustee or receive to take
possession of substantially all of Tenant's assets located at the Leased Premises or of Tenant's
interest in this Lease, where possession is not restored to Tenant within thirty (30) days; or (d)
the attachment, execution, or other judicial seizure of substantially all of Tenant's assets located
at the Leased Premises or of Tenant's interest in this Lease, where such seizure is not discharged
within thirty (30) days; provided, however, in the event that any provision of this Section 13.1(c)
is contrary to any applicable law, such provision shall be of no force or effect, and not effect the
validity of the remaining provisions.
Upon the occurrence of any of the foregoing, Landlord may, without limiting Landlord in
the exercise of any other right or remedy Landlord may have in law or equity or account of such
default, including without limitation, those remedies afforded Landlord pursuant to California
Civil Code Section 1951.4, and without any further demand or notice, Landlord may exercise
any of the remedies set forth in Section 13.2.
F if
619/015610-0048 -12- V b
304265.06 AM02
13.2 Remedies. Upon the occurrence of an Event of Default, then at Landlord's option
and without limiting Landlord in the exercise of any other right or remedy Landlord may have in
law or equity on account of such default, including without limitation, those remedies afforded
Landlord pursuant to California Civil Code Section 1951.4, and without any further demand or
Notice, Landlord may exercise either of the following remedies:
(a) Re-enter the Leased Premises with process of law, take possession thereof
and of all improvements, additions, alterations, equipment and fixtures thereon, and eject all
parties in possession thereof Landlord may, without terminating this Lease, relet the Leased
Premises or any part thereof for the accounts of Landlord or Tenant, receive and collect the rents
therefor, applying the rents first to the payment of such expenses as Landlord may have incurred
in recovering possession of the Leased Premises, including costs, expenses and reasonable
attorney's fees, and for placing the Leased Premises in good order and condition or preparing or
altering the Leased Premises for reletting, and all other, expenses, commission and charges
incurred by Landlord in connection with reletting the Leased Premises, and then to the
fulfillment of the covenants of Tenant. Any such reletting may be for the remainder of the Term
or for a longer or shorter period. Landlord may execute any lease made pursuant to the terms
hereof either in Landlord's name or in the name of Tenant, as Landlord may see fit, and the
subtenant therein shall be under no obligation whatsoever for the application by Landlord of any
rent collected by Landlord from such subtenant to any and all sums, due and owing or which
may become due and owing under the provisions of this Lease. Tenant shall have no right or
authority to collect any rent from such subtenant. In any case and whether or not the Leased
Premises or any part thereof be relet, Tenant shall pay to Landlord all Rent required to be paid by
Tenant up to the time of re-entry by Landlord. Thereafter, Tenant, if required by Landlord, shall
pay to Landlord, until the end of the Term, the equivalent of the amount of all Rent, less the net
proceeds of a reletting, if any, during the Term, after payment of the expenses of Landlord. Such
rent shall be due and payable at the times provided for installments of Rent, and Landlord need
not wait until the termination of this Lease to recover any Rent by legal action or otherwise. Re-
entry by Landlord shall not constitute an election to terminate this Lease unless Landlord gives
Tenant Notice of Landlord's election to terminate. Landlord shall not be responsible or liable for
any failure to relet the Leased Premises, or any part thereof, or for any failure to collect any rent
due upon such reletting; or
(b) Declare this Lease terminated, re-enter the Leased Premises with process
of law, eject all parties in possession thereof and repossess and enjoy the Leased Premises, and
Landlord shall thereupon be entitled to recover from Tenant the present value, at the time of such
termination, of the amount of Rent for the balance of the Term at an annual capitalization rate of
eight percent (8%).
13.3 Remedies Not Exclusive; No Waiver; Specific Performance. The remedies of
Landlord set forth in this Lease are in addition to and not exclusive of any other remedy of
Landlord which may be permitted at law or in equity, and if any breach or threatened breach of
this Lease by Tenant occurs, Landlord shall be entitled to enjoin such breach or threatened
breach and shall have the right to invoke any right and remedy allowed at law or in equity or by
statute or otherwise in addition to rights set forth in this Lease. Tenant shall permit any re-entry
without hindrance to Landlord, and Landlord shall not be liable in damages or guilty of trespass
or eviction because of such re-entry. The failure of Landlord to insist, in any one or more
619/015610-0048 -13 -
304265.06 AM02
instances, upon a strict performance of any of the covenants of this Lease or to exercise any right
or remedy contained herein, shall not be construed as a waiver or a relinquishment for the future
of such covenant or option. A receipt by Landlord of any installment of Net Rent with
knowledge of the breach of any covenant of this Lease shall not be deemed a waiver of such
breach. No waiver by Landlord of any provision of this Lease shall be deemed to have been
made unless expressed in writing and signed by Landlord. In addition to the other remedies
contained in this Lease and by law provided, Landlord shall be entitled to the restraint by
injunction of the violation or attempted or threatened violation of any of the provisions of this
Lease or to a decree compelling performance of any of such covenants, conditions or provisions.
ARTICLE XIV
Indemnity
14.1 Tenant's Indemnity. Tenant shall defend, indemnify and hold harmless Landlord,
its agents, and any and all affiliates of Landlord, including, without limitation, any public agency
or other entities controlling, controlled by or under common control with Landlord, from and
against any and all claims or liabilities arising from Tenant's use or occupancy of the Leased
Premises or the Land or the conduct of its business or from any activity, work, or thing done,
permitted or suffered by Tenant in or about the Leased Premises and the Land, and shall further
defend, indemnify and hold harmless Landlord, its agents and affiliates against and from any and
all claims or liabilities arising from any breach or default in the performance of any obligation on
Tenant's part to be performed hereunder, or arising from any act or negligence of Tenant, or of
its agents, employees, visitors, patrons, guests, invitees or licensees, including vendors, servicing
Tenant at its request, and from and against all costs, attorneys' fees, expenses and liabilities
incurred in or about any such claims or liabilities or any actions or proceedings brought thereon.
Notwithstanding the foregoing, Tenant shall not be liable for damage or injury occasioned by the
gross negligence or willful misconduct of Landlord or its designated agents, servants or
employees, unless covered by insurance Tenant is required to provide. This obligation to
indemnify shall include Tenant's payment of reasonable attorneys' fees and investigation costs
and all other reasonable costs, expenses and liabilities incurred or suffered by Landlord from
Landlord's receipt of the first notice that any claim or demand is to be made or may be made.
Landlord may, at its option, require Tenant to assume Landlord's defense in any action covered
by this Section 14.1 through counsel satisfactory to Landlord. As used in this Lease, the term
"gross negligence" shall mean the failure to perform a manifest duty in reckless disregard of the
consequences as affecting the life or property of another.
ARTICLE XV
Miscellaneous
15.1 Recording. Landlord and Tenant each covenant to the other not to record, or
cause to be recorded, this Lease or any short form thereof.
15.2 Estoppel Certificates. Each party agrees at reasonable intervals and from time to
time upon not fewer than ten (10) business days' prior written Notice by the other to execute,
acknowledge and deliver a statement in writing certifying (a) that this Lease is unmodified and in
619/015610-0048 -14- 018
304265.06 AM02
full force and effect (or if there have been modifications, that this Lease is in full force and effect
as modified and stating the modifications), (b) the dates to which the installments of Rent have
been paid in advance, if any, and (c) stating whether or not, to the best knowledge of the signer
of such certificate, the other party is in default in performance of any covenant, agreement or
condition contained in this Lease and, if so, specifying each such default of which the signer may
have knowledge. Each party acknowledges that any such statement delivered under this Lease
may be relied upon by third parties.
15.3 Right to Enter. Landlord shall have the right to enter the Leased Premises (a) at
reasonable hours upon prior reasonable notice to Tenant (verbal or written) for any purpose
permitted or required by thus Lease; or (b) at any time that an emergency exists, to examine the
Leased Premises or to make such repairs and alterations as shall be reasonably necessary for the
safety and preservation of the Leased Premises.
15.4 Governing Law. This Lease shall be construed and applied in accordance with
the laws of the State of California.
15.5 Severability. Any provision or provisions of this Lease which shall prove to be
invalid, void, or illegal shall in no way affect or impair or invalidate any other provision, and the
remaining provisions shall remain in full force and effect.
15.6 Headings. The headings of the various Articles and Sections of this Lease are
inserted for reference only and shall not to any extent have the effect of modifying, amending or
changing the express terms and provisions of this Lease.
15.7 Notices. All notices, demands, elections, deliveries and other communications
between Landlord and Tenant required or desired to be given in connection with this Lease
("Notices"), to be effective hereunder, shall, except as otherwise expressly provided in this
Lease, be in writing, and shall be deemed to be given and received (a) when delivered
personally; or (b) two (2) days after being deposited with a national overnight courier service
(e.g., Federal Express) or with the United States Postal Service as certified mail, return receipt
requested, in either event with all charges or postage prepaid and addressed as follows:
If to Landlord,
La Quinta Redevelopment Agency
78-495 Calle Tampico
P.O. Box 1504
La Quinta, CA 92253
Attention: Frank J. Spevacek
With a Copy to:
Rutan & Tucker, LLP
611 Anton Boulevard, 14t" Floor
Costa Mesa, CA 92626
Attention: M. Katherine Jenson, Esq.
619/015610-0048 -15 - 019
304265.06 AM02
And if to Tenant,
MDS Consulting
17320 Redhill Avenue, Suite 350
Irvine, California 92714-5644
Attention: Stan Morse
With a Copy to:
Attention:
Either Landlord or Tenant may from time to time designate another address for the
receipt of future Notices by a Notice given as provided in this Section 15.7 to the other party at
the address set forth in, or as last provided by such other party in accordance with, this Section
15.7.
15.8 Amendments and Waivers. Neither this lease nor any term or provision hereof
may be changed, waived, or discharged orally, but only by an instrument in writing signed by the
party against which the enforcement of the change, waiver, or discharge is sought.
15.9 Successors and Assigns. Notwithstanding anything contained herein to the
contrary, this Lease shall be binding upon and inure to the benefit, as the case may require, of the
parties hereto and their respective heirs, executors, administrators, successors and assigns.
15.1.0 Subordination. This Lease shall be subject and subordinate at all times to the lien
of any mortgage or deed of trust, which may now or at any time hereafter be alien upon the
Land. Tenant shall execute and deliver such further instrument or instruments subordinating this
Lease to the lien of any such mortgage or deed of trust as shall be reasonably requested by any
mortgagee or party secured or proposed mortgagee or party proposed to be secured. Tenant shall
attorn to any successor to Landlord by foreclosure or deed in lieu thereof or to any purchaser at a
foreclosure sale of the Leased Premises.
15.11 Assignment of Landlord's Interest. If Landlord should ever assign this Lease or
the rents hereunder to a creditor as security for a debt, Tenant shall, after Notice of such
assignment and upon demand by Landlord or the assignee, pay all sums thereafter becoming due
Landlord hereunder to the assignee and give all Notices required to be given Landlord hereunder
both to Landlord and the assignee. Landlord may assign this Lease, by direct assignment or
merger, to an affiliate of Landlord without the approval of Tenant. Landlord shall also have the
right to make a collateral assignment of this Lease to its lender without the approval of Tenant.
15.12 Transfer by Landlord. If Landlord sells, leases or in any manner transfers title to
the Leased Premises, including foreclosure sale by judicial proceeding or otherwise, the
Landlord shall be relieved of all covenants and obligations arising hereunder after the date of
such sale, lease or other transfer, provided that such transferee shall agree, in a writing delivered �.
to Tenant, to assume all covenants and obligations of the Landlord hereunder. Tenant agrees that
020
619/015610-0048
304265.06 A-M02 -16-
it will attorn to such transferee upon the satisfaction of such conditions, and Tenant shall
continue to perform all of the terms, covenants, conditions, and obligations of this Lease.
15.13 Rules and Regulations. Landlord shall have the right, from time to time, to issue
reasonable rules and regulations regarding the use of the Leased Premises. When so issued, such
rules and regulations shall be considered a part of this Lease. Landlord shall not be liable to
Tenant in the violation of any rules and regulations or the breach of any covenant or condition in
any lease by any other tenant of the Land.
15.14 Entire Agreement. This Lease contains the entire agreement of the parties with
regard to the matters set forth herein. Any other agreements, promises or representations, oral or
written, between the parties with respect to such matters are hereby superseded and merged into
this Lease.
15.15 Time of Essence. Time is of the essence of this Lease.
15.16 Execution of Counterparts. This Lease may be executed in several counterparts,
each of which shall be an original but all of which shall constitute one and the same instrument.
619/015610-0048 0 1 1
304265.06 AM02 -1
15.17 Relationship Between the Parties. Notwithstanding the existence of other
relationships between the parties to this Lease, this Lease only controls the relationship between
Landlord, as landlord under this Lease, and Tenant, as tenant under this Lease.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed
to be effective as of the date first written above.
ATTEST:
June S. Greek, Agency Clerk
APPROVED AS TO FORM:
M. Katherine Jenson
Agency Attorney
THE LA QUINTA REDEVELOPMENT
AGENCY, a public body, corporate and politic
Thomas P. Genovese
Executive Director
MDS CONSULTING,
a California corporation
Title:
"Landlord"
"Tenant"
619/015610-0048
304265.06 AM02
EXHIBIT "A"
DESCRIPTION OF THE LAND
619/015610-0048 0 2 3
304265.06 AM02
EXHIBIT `B"
DEPICTION OF THE LEASED PREMISES
EXHIBIT "B" ( ^
il
619/015610-0048 i,) 2 `1
304265.06 AM02 TO LEASE