Loading...
CC Resolution 1992-016^!AW# I RESOLUTION NO. 92-16 A RESOLUTION OF THE CITY OF LA QUINTA RELATING TO DISPOSITION OF CITY PROPERTY PURSUANT TO A LEASE WITH BOYS AND GIRLS CLUB OF COACHELLA VALLEY WHEREAS, the City of La Quinta the City") has authority to lease its real property and dispose of it for the common benefit pursuant to Government Code Section 37350; and WHEREAS, the proposed lease between the City and the Boys and Girls Club of Coachella Valley the Lease") attached hereto is to provide for the operation of a youth center for the purpose of providing recreational opportunities geared towards school aged children and to allow for use of the center by other nonprofit community organizations on an as available basis; and WHEREAS, the Planning Commission of the City of La Quinta has approved Public Use Permit No. 91-012 for the proposed facility to be built pursuant to the Lease and thereby has determined the proposed project to be consistent with the City*s general plan. NOW, THEREFORE, the City Council of the City of La Quinta hereby finds and resolves as follows: 1. Environmental Assessment 91-220 and the finding of a negative declaration for the proposed project by the planning commission as confirmed by the City Council in conjunction with approval of Public Use Permit No. 91-012 adequately addresses any potential environmental impacts of the project as there has been no change in circumstances or the scope of the project since the approval of the PUP. 2. The proposed lease of City property to the Boys and Girls Club pursuant to the Lease attached hereto provides for the recreational use of youth and other community groups thereby providing a specific and unique public benefit to the community. 3. The proposed Boys and Girls Club project is a use that has been found to be consistent with the City*s general plan by the Planning Commission pursuant to their approval of Public Use Permit No. 91-012. 4. The Mayor and City Manager are authorized to execute the attached Lease and any other documents necessary to effectuate the intent encompassed thereby. BIB] 08-03-1998-U01 03:04:20PM-U01 ADMIN-U01 CCRES-U02 92-U02 16-U02 ^!AW# PASSED, APPROVED AND ADOPTED this 4th day of February 1992 by the following vote: AYES: Council Members Bohnenberqer, Franklin, Rushworth, Sniff & Mayor Pena NOES: None ABSENT: None ABSTAIN: None JOHN PENA, ayor City of La Quinta, California UNDRA L. JUHOL City Clerk, City of La Quinta, California APPROVED AS TO FORM: DAWN HONEYWELL, City Attorney STRADLING, YOCCA, CARLSON & RAUTH 01/28/92 BIB] 08-03-1998-U01 03:04:20PM-U01 ADMIN-U01 CCRES-U02 92-U02 16-U02 ^!AW# I LEASE AGREEMENT by and between CITY OF LA QUINTA Lessor* arid BOYS AND GIRLS CLUB OF COACHELLA VALLEY Lessee'1 BIB] 08-03-1998-U01 03:04:20PM-U01 ADMIN-U01 CCRES-U02 92-U02 16-U02 ^!AW# TABLE OF CONTENTS Page ARTICLE I. TERM OF LEASE 1.1 Premises........................................1 1.2 Reservation.....................................1 1.3 Exceptions to Leasehold Estate..................1 1.4 Term............................................1 1.5 Date of Lease and Legal Effect..................1 ARTICLE II. DEVELOPMENT AND OWNERSHIP OF IMPROVEMENTS 2.1 Construction, Inspection by Lessor and Right to Improvements.....................2 2.2 Cost and Expense of Improvements................2 2.3 Lessor Assistance...............................3 ARTICLE III. RENT 3.1 Net Lease.......................................3 3.2 Minimum Rent....................................4 3.3 Additional Payments.............................4 3.4 Place of Payment; Late Payments.................4 ARTICLE IV. USE OF PREMISES AND COMPLIANCE WITH LAW 4.1 Permitted Uses..................................4 4.2 Nondiscrimination...............................5 ARTICLE V. PAYMENT OF EXPENSES.............................S ARTICLE VI. MAINTENANCE OF PREMISES 6.1 Obligations for Maintenance.....................5 6.2 Standard of Maintenance........................6 6.3 Liens..........................................6 6.4 Lessor's Substitute Performance................6 ARTICLE VII. INSURANCE AND INDEMNITY 7.1 Lessee's Insurance..............................7 7.2 Cost of Living Ad*ustment.......................9 7.3 Covenant to Indemnify and Hold Harmless 10 7.4 Waiver of Subrogation..........................11 i) BIB] 08-03-1998-U01 03:04:20PM-U01 ADMIN-U01 CCRES-U02 92-U02 16-U02 ^!AW# 5 Page ARTICLE VIII. UTILITY CHARGES................................11 ARTICLE IX. ALTERATIONS AND ADDITIONS......................11 ARTICLE X. CASUALTY LOSS AND RESTORATION 10.1 Non-Termination................................12 10.2 Damage and Duty to Restore.....................12 10.3 Right to Terminate Lease.......................12 10.4 No Obligation of Lessor to Restore.............13 10.s Continued Operations...........................13 ARTICLE XI. ASSIGNMENT AND SUBLETTING 11.1 Agency's Consent Required......................13 11.2 Lessee Remains Obligated.......................13 ARTICLE XII. DEFAULT 12.1 Events of Default..............................14 12.2 Remedies.......................................14 12.3 De*ault by Lessor..............................17 12.4 Legal Expenses and Collection Costs............17 ARTICLE XIII. HOLDING OVER...................................17 ARTICLE XIV. ACCESS BY LESSOR...............................17 ARTICLE XV. QUIET ENJOYMENT................................18 ARTICLE XVI. TAXES..........................................ia ARTICLE XVII. FORCE MAJEURE..................................18 ARTICLE XVIII FINANCING/HYPOTHECATION........................19 18.1 Mortgages......................................19 18.2 No Settlement Without Mortgagee Consent 23 16.3 No Subordination...............................23 ii) BIB] 08-03-1998-U01 03:04:20PM-U01 ADMIN-U01 CCRES-U02 92-U02 16-U02 ^!AW# 5 Page ARTICLE XIX RENEWAL OPTION 19.1 Option to Extend 23 19.2 Continuation of Terms 23 ARTICLE XX. MISCELLANEOUS 20.1 Press Releases..................................24 20.2 Waiver..........................................24 20.3 Notices.........................................24 20.4 Relationship of Parties.........................24 20.5 Accord and Satisfaction.........................24 20.6 Time of Essence.................................25 20.7 Remedies Cumulative.............................25 20.8 Effect of Invalidity............................25 20.9 Successors and Assigns.........................25 20.10 Entire Agreement................................25 20.11 Interest on Past-Due Obligations...............26 20J12 Execution of Lease; No Option..................26 20.13 Corporate Authority............................26 20.14 Controlling Law................................26 20.15 Specific Performance...........................26 20.16 Survival of Indemnities and Warranties.........26 20.17 Estoppel Certificate...........................27 EXHIBIT A Description of Premises EXHIBIT B Scope of Development iii) BIB] 08-03-1998-U01 03:04:20PM-U01 ADMIN-U01 CCRES-U02 92-U02 16-U02 ^!AW# LEASE AGREEMENT THIS LEASE AGREEMENT the Lease") is entered into this day of 1992, by and between the CITY OF LA QUINTA Lessor"), a municipal corporation formed under the laws of the State of California, and the BOYS AND GIRLS CLUB OF COACHELLA VALLEY, a California Lessee"). In consideration of the payments to be made hereunder and the covenants and agreements contained herein, the parties hereto agree as follows: ARTICLE I. TERM OF LEASE 1.1 Premises. Lessor is currently the owner of that parcel of real property located in the City of La Quinta, legally described in Exhibit A" attached hereto and incorporated herein by this reference the Premises"). The address of the Premises is La Quinta, California. Lessor agrees to lease to Lessee and Lessee agrees to lease from Lessor the Premises upon the terms and conditions expressed herein. 1.2 Reservation. Lessor reserves to itself, its successors, and assigns, together with the right to grant and transfer all or a portion of the same, the non-exclusive right to enter upon the Premises in accordance with any rights of Lessor set forth in this Lease. 1.3 Exceptions to Leasehold Estate. This Lease is made subject to all covenants, conditions, restrictions, reservations, rights, rights*of*way, easements, and all other matters of record or apparent upon a visual inspection of the Premises affecting the Premises or the use thereof on the date this Lease is executed by Lessee. 1.4 Term. The Term" of this Lease shall be forty 40) years, commencing on the date the Term Commencement Date") that Lessor has obtained a building permit for the Improvements as herein defined) to be constructed by Lessee on the Premises. 1.5 Date of Lease and Legal Effect. The terms, covenants and conditions of this Lease shall become legally binding on the Term Commencement Date. BIB] 08-03-1998-U01 03:04:20PM-U01 ADMIN-U01 CCRES-U02 92-U02 16-U02 ^!AW# ARTICLE II. DEVELOPMENT AND OWNERSHIP OF IMPROVEMENTS 2.1 Construction, Inspection by Lessor and Right to Improvements. Lessee shall construct or cause to be constructed the improvements on the Premises as set forth in the Scope of Development attached hereto as Exhibit B" and made a part hereof t1lmprovements") which Improvements shall include a youth center of approximately 24,000 square feet on the corner of Park Avenue and Avenue 50 in the City of La Quinta. Building permits shall be obtained and construction begun on the Improvements within one 1) year of the date of the execution of this Lease. Lessee shall provide status reports to Lessor concerning all actions taken towards commencing construction at six 6)-month intervals from the date of execution of this Lease by the Lessor until a certificate of occupancy has been issued for the Improvements. Completion of construction shall be within eighteen 18) months of the issuance of building permits for the Improvements. Lessee covenants with Lessor that the Improvements of whatsoever nature constructed by Lessee on the Premises shall be constructed at Lessee's sole cost and expense in a good workmanlike manner according to and in conformity with plans and specifications to be submitted to Lessor pursuant to Section 2.2 below and in compliance with all applicable municipal building and zoning laws and with all other laws, ordinances, orders, rules, regulations and requirements of federal, state and municipal governments and appropriate departments, commissions, boards and officers thereof. At all times during construction, and prior to completion, of the Improvements, Lessor shall have the right, after not less than twenty-four 24) hours notice to Lessee, to enter upon the Premises in the company of a representative of Lessee for the purpose of inspecting the same, provided that such entry and inspection shall not unreasonably interfere with Lessee's construction of the Improvements. Any and all Improvements which are made by Lessee to the Premises shall be owned by Lessee during the Term but shall remain a part of the Premises and be surrendered therewith at the end of the Term or sooner termination of this Lease, at which time the same shall become the property of Lessor. 2.2 Cost and Expense of Improvements. Except as set forth in Section 2.3 hereof, the entire cost and expense of constructing any and all Improvements on the Premises shall be borne and paid by Lessee, and Lessee shall hold and save Lessor and the Premises harmless from any liability whatsoever on account thereof. Before commencement of the construction of any Improvements, and before any materials in connection with such construction are delivered to the Premises, Lessee shall comply with the following conditions: 01/24/92 8817u/2588/00 2- BIB] 08-03-1998-U01 03:04:20PM-U01 ADMIN-U01 CCRES-U02 92-U02 16-U02 ^!AW# I a) Notify Lessor of Lessee's intention to commence a work of improvement at least fifteen 15) days before commencement of any such work or delivery of any materials in connection therewith to the Premises. The notice shall specify the approximate location and nature of the intended Improvements. Lessor shall have the right to post and maintain on the Premises any notices of nonresponsibility provided for under applicable law, and, after not less than twenty-four 24) hours notice to Lessee, to inspect the Premises, at all reasonable times and in the company of a representative of Lessee, in relation to such construction, provided that such entry shall not unreasonably interfere with such demolition and/or construction. b) Deliver to Lessor for Lessor s approval, which approval shall not be unreasonably withheld, a set of final construction plans and specifications prepared by a licensed architect or engineer as approved by all appropriate governmental agencies and authorities. 2.3 Lessor Assistance. Lessor shall assist Lessee in the amount equal to the costs of payment of all required municipal permit fees collectively, the Lessor Assistance"). ARTICLE III. RENT 3.1 Net Lease. It is the intent of the parties hereto that the rent provided herein shall be absolutely net to Lessor and that Lessee shall pay all costs, charges and expenses of every kind and nature against the Premises and any Improvements which may arise or become due during the Term and which, except for execution and delivery hereof, would or could have been payable by Lessor. 3.2 Minimum Rent. During the Term of this Lease, Lessee shall pay to Lessor as rental for the use and occupancy of the Premises, ground rental for each year from the Term Commencement Date of One Dollar $1.00) the Rent"). The Rent owing for the full Term of the Lease shall be payable in advance of the Term Commencement Date. 3.3 Additional Payments. Except as otherwise provided in this Lease, all sums of money or charges whatsoever required to be paid by Lessee to Lessor under this Lease other than Rent shall be due and payable fifteen 15) days after demand, presented in writing by certified mail, without any deductions or offsets whatsoever. Lessor shall have no obligation to bill Lessee for annual Rent, security charges, or other operational expenses. Lessee s failure to pay any such amounts or charges 01/24/92 BIB] 08-03-1998-U01 03:04:20PM-U01 ADMIN-U01 CCRES-U02 92-U02 16-U02 ^!AW#when due shall carry with it the same consequences as Lessee's failure to pay Rent and shall be deemed to be additional *ent. 3.4 Place of Payment; Late Payments. Lessee agrees to pay the rental and other charges herein reserved to Lessor at 78-105 Calle Estado, La Quinta, California 92253, payable to Lessor or to such other person and/or at such other location as Lessor may from time to time designate in writing. All payments shall be made by check for an account in lawful money of the United States. All payments requiring proration shall be prorated on the basis of a thirty 30) day month. ARTICLE IV. USE OF PREMISES AND COMPLIANCE WITH LAW 4.1 Permitted Uses. Lessor 5 primary purpose for entering into this Lease is to provide for the operation of the Improvements as a youth center for providing a variety of quality programs for children between the ages of 7 and 18. Included within the youth center shall be a gymnasium, an education center for reading and computers, a multipurpose room, a kitchen, a weight room, an exercise room, a games room for junior and senior members, locker rooms, a clinic, administrative offices, an outdoor play area, and a swimming pool. Lessee shall not use the Premises for any other purposes without prior written consent of the Lessor. Lessor and other nonprofit community organizations shall have the right from time to time to utilize the premises or appropriate portions thereof in connection with official city functions and/or other community programs, provided, however, that Lessor shall have first requested and obtained the consent of Lessee to such use, which consent Lessee shall not unreasonably withhold. Lessee, at Lessee 5 expense, shall promptly comply with all present and future laws, ordinances, orders, rules, regulations and requirements of all governmental authorities having jurisdiction affecting the Premises and Improvements or the cleanliness, safety, occupancy and use of same, whether or not any such law, ordinance, order, rule, regulation or requirement is substantial1 or foreseen or unforeseen, or ordinary or extraordinary or shall necessitate structural changes of the Improvements or interfere with the use and enjoyment of the Premises. 4.2 Nondiscrimination. Lessee covenants for itself, its heirs, executors, administrators, and assigns, and all persons claiming under or through it, that this Lease is made and accepted upon and subject to the condition that there shall be no discrimination against or segregation of any person or group of 01/24/92 8817u/2588/00 4- BIB] 08-03-1998-U01 03:04:20PM-U01 ADMIN-U01 CCRES-U02 92-U02 16-U02 ^!AW# I persons on account of race, color, creed, religion, sex, national origin, ancestry, political affiliation or physical handicap associated with the construction, operation and maintenance of the Premises. ARTICLE V. PAYMENT OF EXPENSES Lessee shall pay all of the costs and expenses in the operation, management, and maintenance of the Improvements. Such expenses shall include, without limitation, the following: i) expenses incurred by Lessee for general maintenance, painting, lighting, cleaning, trash removal, security, fire protection; and ii) the actual cost of repairs to the Improvements. ARTICLE VI. MAINTENANCE OF THE PREMISES 6.1 Obligations for Maintenance. Lessee, at Lessee s expense without cost to Lessor, shall maintain in good order, condition, quality, and repair, the Improvements and every part thereof and any and all appurtenances thereto wherever located, and all other repairs, replacements, renewals and restorations, ordinary and extraordinary, foreseen and unforeseen. 6.2 Standard of Maintenance. Lessee shall keep and maintain the Premises and the Improvements in a clean, sanitary and safe condition in accordance with the laws of the State of California and in accordance with all directions, rules and regulations of the health officer, fire marshall, building inspector or other proper officials of the governmental agencies having *urisdiction, and Lessee shall comply with all requirements of laws and ordinances affecting the Premises and the Improvements, all at the sole cost and expense of Lessee. At the time of the expiration of the tenancy created herein, Lessee shall surrender the Premises and the Improvements thereon in good order, condition and repair. 6.3 Liens. Lessee shall keep the Premises, the Improvements, or any part thereof free from any and all liens arising out of any work performed, materials furnished or obligations incurred by or for Lessee, and agrees to cause to be discharged any mechanic 5 or materialmen's lien of record within twenty 20) days after the lien has been filed or within ten 10) days after receipt of written request from Lessor, whichever shall be the sooner. Lessee shall give Lessor at least fifteen 15) days written notice prior to commencing or causing to be commenced any work on the Premises whether prior or subsequent to the commencement of the Term), SQ that Lessor shall have reasonable opportunity to file and post notices of non-responsibility for Lessee's work. Lessor may condition its consent to any work upon Lessee posting lien and material and/or 01/24/92 BIB] 08-03-1998-U01 03:04:20PM-U01 ADMIN-U01 CCRES-U02 92-U02 16-U02 ^!AW#completion bonds in amounts as may be necessary to cover the anticipated cost of such work and potential overruns. Lessee shall reimburse Lessor for any and all costs and expenses which may be incurred by Lessor by reason of the filing of any such liens and/or removal of same, such reimbursement to be made within then 10) days after receipt by Lessee from Lessor of a statement setting forth the amount of the costs and expenses. 6.4 Lessor's Substitute Performance. In the event Lessee fails, refuses or neglects to commence and complete promptly and adequately any of the required repairs or maintenance, to remove any lien, to pay any cost or expense relating to such matters, or to otherwise perform any act or fulfill any obligation required of Lessee pursuant to Section 6.1, Lessor may, but shall not be required to, make or complete any such repairs, remove such lien, or pay such cost and expense, and Lessee shall reimburse Lessor for all costs and expenses of Lessor thereby-incurred within fifteen 15) days after receipt by Lessee from Lessor of a statement setting forth the amount of such costs and expenses which shall be deemed to be additional Rent and subject to the same consequences as herein provided f6r failure to pay Rent. Any amounts owed to Lessor under this Article VI shall accrue interest at the rate of ten percent 10%) per annum until payment is received by Lessor. If reasonably possible under the circumstances, Lessor shall give Lessee written notice fifteen 15) days prior to commencement of any substitute performance. Any failure by Lessor to give such notice, however, shall not prejudice Lessor's rights hereunder or alter Lessee's obligations hereunder. Lessor's rights and remedies pursuant to this Section 6.4 shall be in addition to any and all other rights and remedies provided under this Lease or at law. ARTICLE VII. INSURANCE AND INDEMNITY 7.1 Lessee's Insurance. a) Types. Lessee, at no cost and expense to Lessor, shall procure and keep in full force and effect during the Term or cause to be procured and kept in full force and effect for the mutual benefit of Lessor and Lessee, 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 Premises in the Southern California area: 01/24/92 8817u/2588/O0 6- BIB] 08-03-1998-U01 03:04:20PM-U01 ADMIN-U01 CCRES-U02 92-U02 16-U02 ^!AW # I i) comprehensive general liability insurance with respect to the Premises and the operations of or on behalf of Lessee or its agents, officers, directors, and employees in, on or about the Premises in an amount not less than One Million Dollars $1,000,000) per occurrence combined single limit bodily injury, personal injury, death and property damage liability per occurrence, subject to such increases in amount as Lessor 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 Lessor and its officers, employees, and agents shall be additional insureds under such policy or policies. The adequacy of general liability coverage carried by Lessee may be reviewed and modified by Lessor to assure adequate liability coverage during the entire Term; provided, however, that the specified limits are not increased more frequently than once every three 3) years. Should Lessor and Lessee fail to agree on an appropriate adjustment to coverage, the increase if any shall be equal to the total percentage increase in the CPI as defined in Section 7.2 below from the time the limit then in effect was established to the date of Lessor s notice to Lessee to increase coverage limits, provided the cost for such increased coverage is either commercially reasonable or consistent with limits on insurance maintained for similar developments in the area for which the Leased Land is located; 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 located on or in the Premises, insurance against fire, peril of flood, earthquake, extended coverage, vandalism and malicious mischief, and such other additional perils, hazards and risks as now are or may be included in standard 1'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. Lessor 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 Lessee under this Lease shall be written by responsible and solvent insurance companies rated A or better 01/24/92 BIB] 08-03-1998-U01 03:04:20PM-U01 ADMIN-U01 CCRES-U02 92-U02 16-U02 ^!AW# I *- I by the Best Key Rating Guide and authorized to do business in the State of California. Any such insurance required of Lessee hereunder may be furnished by Lessee 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 Lessor prior to the date Lessee is given the right of possession of the Premises or as Lessor may otherwise require, and upon renewals, not less than thirty 30) days prior to the expiration of such coverage. Lessor may, at any time, and from time to time, inspect and/or copy any and all insurance policies required to be procured by Lessee hereunder. In no event shall the limits of any policy be considered as limiting the liability of Lessee under this Lease. c) Specific Provisions in Policy. Each policy evidencing insurance required to be carried by Lessee pursuant to this Article shall contain the following provisions or clauses: i) a provision specifying that the City of La Quinta shall be named as an additional insured under the policy; ii) a provision that the insurer will not cancel or materially change the coverage provided by such policy without first giving Lessor thirty 30) day*t prior written notice; and iii) a waiver by the Lessee 5 insurer of any right to subrogation against Lessor, 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 Lessor, its agents, employees or representatives. d) Lessor9s Substitute Performance. In the event that Lessee fails to procure, maintain and/or pay for at the times and for the durations specified in this Section 7.1, any insurance required by this Section, or fails to carry insurance required by law or governmental regulation, Lessor may but without obligation to do so) at any time or from time to time, after thirty 30) days written notice to Lessee, procure such insurance and pay the premiums therefor, in which event Lessee shall repay Lessor all sums so paid by Lessor together with ten percent 10%) interest per annum thereon. 01/24/92 8817u/2588/00 8- BIB] 08-03-1998-U01 03:04:20PM-U01 ADMIN-U01 CCRES-U02 92-U02 16-U02 ^!AW# I I 7.2 Cost of Living Adlustment. The cost of living adjustment to the amount of general liability insurance to be carried by Lessee to be made should Lessor and Lessee fail to agree on an appropriate adjustment shall be determined in the manner and pursuant to the following formula: 1= WxA P In such formula * represents the adjusted amount of general liability insurance to be held by Lessee during the Lease Years for which amount of insurance coverage is being computed under such formula; W" represents the amount of general liability coverage held by Lessee immediately prior to I, the adjustment being computed, A represents the Consumer Price Index CPI" herein) for All Urban Consumers, all items, most recently published and released prior to the adjustment date being computed, for the Riverside area as reported by the U.S. Department of Labor, Bureau of Labor Statistics based upon the establishment of one hundred 100) as the index for the year 1982/84; P" represents the CPI most recently published and released prior to the last adjustment date. If the CPI which is used or published for any relevant time as provided in this Lease is based upon the establishment of 100 as the price index for the year or a group of years other than 1982/84, the CPI to be substituted for VA11 in the above formula shall be*computed by converting the index as then issued or published to the basis of 100 as the price index for 1g82/84. In the event that no such index is issued or published within one 1) year previous to each period for which such amount of general liability insurance is being adjusted and computed hereunder or that said Bureau should cease to publish said index figure, then any similar index published by any other branch or department of the U. S. Government shall be used and if none is so published, then another index generally recognized as authoritative shall be substituted by agreement. In any event, the base used by any index shall be reconciled to the 1982/84 index. It shall be the duty and obligation of Lessor to make the computations and determinations pursuant to this Section and to communicate the results to Lessee, together with working papers to support the computation; 7.3 Covenant to Indemnify and Hold Harmless. Lessee covenants to defend and indemnify Lessor, its officers, directors, partners, representatives, agents and employees, and save them harmless from and against any and all claims, actions, losses, damages, liability, and expenses, including 01/24/92 * BIB] 08-03-1998-U01 03:04:20PM-U01 ADMIN-U01 CCRES-U02 92-U02 16-U02 ^!AW#attorneyst fees, in connection with the loss of life, bodily injury and/or damage to property arising from or out of or in connection with any occurrence in, upon or at the Premises, or the construction of improvements, the occupancy or use by Lessee of the Premises or any part thereof, or arising from or out of Lessee's failure to comply with any provision of this Lease or otherwise occasioned wholly or in part by any act or omission of Lessee, its agents, directors, representatives, contractors, employees, servants, invitees or licensees, excepting that the foregoing indemnification and hold harmless provision shall not apply in the event of any uninsured willful or actively negligent misconduct on behalf of Lessor or any of its agents, representatives, or employees, or in the event any such claims, actions, losses, damages, liability, costs, or expenses arise out of a breach by Lessor of its obligations under this Lease. If Lessor is made a party to any litigation commenced by or against Lessee, then Lessee shall protect, defend and hold Lessor harmless and shall pay all costs, expenses and reasonable attorneys' fees incurred or paid by Lessor in connection with such litigation. Lessor may, at its option, require Lessee to assume Lessor's defense in any action covered by this Section 7.3 through counsel selected by Lessor and reasonably satisfactory to Lessee. Lessee, as a material part of the consideration to Lessor, hereby assumes all risk of damage to property or injury to persons in, upon or about the Premises and Improvements from any cause whatsoever, and Lessee hereby waives all its claims in respect thereof against Lessor excepting only damage or injury arising out of i) the uninsured willful or actively negligent misconduct of Lessor or any of its agents, representatives, or employees, or ii) a breach by Lessor of its obligations under this Lease. 7.4 Waiver of Subrogation. Each party hereto does hereby waive, remise, release and discharge the other party hereto and any officer, director, shareholder, beneficiary, partner, agent, employee or representative of such other party, of and from any liability whatsoever hereafter arising from loss or damage for which insurance containing a waiver of subrogation is carried by the injured party under such insurance. Lessee shall, upon obtaining the policies of insurance required hereunder, give notice to the insurance carrier or carriers that the foregoing mutual waiver of subrogation is contained in this Lease. ARTICLE VIII. UTILITY CHARGES LeBsee shall pay all charges for gas, water, sewer, electricity, telephone and other utility services or franchise supplier used on or in the Premises. If any such charges are 01/24/92 8817u/2588/00 10- BIB] 08-03-1998-U01 03:04:20PM-U01 ADMIN-U01 CCRES-U02 92-U02 16-U02 ^!AW# I not paid when due, Lessor may pay the same after giving Lessee fifteen 15) days prior written notice, and any amount so paid by Lessor shall thereupon become due to Lessor from Lessee as additional Rent. ARTICLE IX. ALTERATIONS AND ADDITIONS Without Lessor 5 prior written consent, which consent may be withheld or granted in Lessor9s reasonable discretion, Lessee shall not have the right to make changes or alterations to the Improvements or the Premises, except on the following conditions: a) Lessee shall not make any alterations, whether structural or non-structural, which will decrease the value of the Premises or the Improvements. If the cost of such changes or alterations to the Improvements or the Premises exceeds Five Thousand Dollars $5,000), Lessee shall submit to Lessor plans and specifications for approval. b) Before the commencement of any work, Lessee shall pay the amount of any increased premiums on insurance policies provided for hereunder; c) Lessor shall in no event be required to make any alterations, rebuilding, replacement, changes, additions or Improvements or repairs to the Premises, except as specifically provided in this Lease; d) All such changes, alterations, rebuilding, replacements, additions, improvements and repairs to the Premises made by Lessee shall be deemed to have attached to the realty and to have become the property of Lessor upon the expiration of the Term or upon sooner termination of this Lease. ARTICLE X. CASUALTY LOSS AND RESTORATION 10.1 Non-Termination. Except as provided herein, no destruction or damage to the Improvements or the Premises by fire, windstorm or other casualty whether insured or uninsured shall entitle Lessee to terminate this Lease. 10.2 Damage and Duty to Restore. In case of damage to or destruction of the Improvements caused by an event required to be covered by insurance pursuant to Article 7 hereof, Lessee's rental obligations shall continue as provided in Article 3 above, and Lessee shall promptly, at its sole cost and expense, restore, repair, replace or rebuild improvements of comparable value as existed on the Premises immediately prior to such damage or destruction. Such restoration, repairs, replacements 01/24/92 BIB] 08-03-1998-U01 03:04:20PM-U01 ADMIN-U01 CCRES-U02 92-U02 16-U02 ^!AW#or rebuilding shall be commenced promptly and prosecuted with reasonable diligence. All work required to be performed by Lessee under this Section shall be performed pursuant to all of the provisions of Article 2. 10.3 *t to Terminate Lease. Notwithstanding the provisions of Section 10.1 above, a) if the damage to or destruction of the Improvements is caused by an event not required to be covered by insurance pursuant to Article 7 hereof, or b) if during the last ten 10) years of the Term as may be extended by the option provision in Article XIX herein, the Improvements shall be damaged or destroyed by fire or any other casualty whatsoever to the extent of fifty percent 50%) or more of the full replacement value of the Improvements existing on the Premises immediately prior to such damage or destruction, within ninety 90) days after such damage or destruction, Lessee shall have the right to terminate this Lease. Said right shall be exercised by serving written notice upon Lessor within sixty 60) days of such damage or destruction. Lessee shall continue to perform all obligations of the Lessee hereunder until such termination is effected, and Lessor shall be entitled to retain that portion of the insurance proceeds otherwise payable to Lessee pursuant to Article 13. In the event that Lessee elects not to rebuild, and to terminate this Lease as provided above, Lessee shall then be obligated to utilize such insurance proceeds as may have been received to remove any damaged or destroyed portions of the premises as Lessor may request to be removed and to restore the site upon which such removed premises or portions thereof previously were located to the general condition of such site prior to the commencement of construction of the improvements. 10.4 No Obligation of Lessor to Restore. Lessor shall in no event be under any duty or obligation to restore, replace or rebuild any building or improvement at any time on the Leased Land, except to the extent that the damage thereto or destruction thereof occurs as a result of the negligence of Lessor. 10.5 Continued Operations. During any period of repair, Lessee shall continue, or cause the continuation of, the operation of its programs on the Premises and use of the Facility by community groups to the extent reasonably practicable. However, irrespective of the continued operation during such period of repair, the Rent payable hereunder shall not be deferred and shall not be abated. Upon completion of such repair and restoration, Lessee shall promptly refixture and restock the Improvements, if necessary, substantially to the condition prior to the casualty, or as otherwise required by this Lease, whichever is greater, and shall reopen if closed by the casualty. 01/24/92 8817u/2568/00 12- BIB] 08-03-1998-U01 03:04:20PM-U01 ADMIN-U01 CCRES-U02 92-U02 16-U02 ^!AW# I ARTICLE XI. ASSIGNMENT AND SUBLETTING 11.1 Agency's Consent Required. Notwithstanding any provision herein to the contrary, Lessee agrees and covenants which covenants shall be binding upon the heirs, executors, and administrators of Lessee) that Lessee shall not, assign, sell, encumber, pledge or otherwise transfer all or any part of Lessee's leasehold estate hereunder, or permit the Premises to be occupied by anyone other than Lessee, Lessee's employees or invitees, or sublet the Premises, with the exception of the use for single occasions by other community groups as specified in Article IV, Section 4.1 and 4.2), or any portion thereof, without Lessor's prior written consent. No assignment, whether voluntary or involuntary, by operation of law, under legal process or proceedings, by receivership, in bankruptcy, or otherwise, and no subletting shall be valid or effective without such prior written consent, and at Lessor's election, shall constitute a default. 11.2 Lessee Remains Obligated. No subletting or assignment, even with the consent of Lessor, shall relieve Lessee of its obligation to pay Rent and all of its other obligations hereunder. The acceptance by Lessor of any payment due hereunder from any person or entity other than Lessee shall not be construed as a waiver by Lessor of any provision of this Lease or as a consent to any assignment or subletting. Consent by Lessor to an assignment of this Lease or to a subletting of the Premises shall not operate as a waiver or estoppel to the future enforcement by Lessor of its rights pursuant to this Lease. ARTICLE XII. DEFAULT 12.1 Events of Default. The word default," as used in this Section 12.1, shall mean and include any one or more of the following events or occurrences: a) The failure by Lessee to make any payment of rent, or other payment required to be made by Lessee hereunder, when due and the continuance of such failure for a period of fifteen 15) days after Lessor has given Lessee written notice specifying the same; b) The failure of Lessee to perform any term, condition, covenant or agreement of this Lease, excluding the payment of Rent, and the continuation of such failure for a period of thirty 30) days after Lessor shall have given Lessee written notice specifying the same, or in the case of a situation in which the default cannot reasonably be cured within thirty 30) days, if Lessee shall not promptly, within thirty 30) days after receipt of such notice, commence to remedy the situation by a means that can reasonably be expected 01/24/92 BIB] 08-03-1998-U01 03:04:20PM-U01 ADMIN-U01 CCRES-U02 92-U02 16-U02 ^!AW#to remedy the situation within a reasonable period of time, and diligently pursue the same to completion; c) The abandonment by Lessee of the Premises or a substantial portion thereof; d) Lesseets i) application for, consent to1 or suffering of, the appointment of a receiver, trustee or liquidator for all or for a substantial portion of its assets; ii) making a general assignment for the benefit of creditors; iii) being adjudged a bankrupt; iv) filing a voluntary petition or suffering an involuntary petition under any bankruptcy, arrangement, reorganization or insolvency law unless in the case of an involuntary petition, the same is dismissed within thirty 30) days of such filing); or v) suffering or permitting to continue unstayed and in effect for fifteen 15) consecutive days any attachment, levy, execution or seizure of all or a substantial portion of Lessee's assets or of Lessee's interest in this Lease; 12.2 Remedies. a) General. In the event of any default by Lessee, including the expiration of any applicable cure period, Lessor may: i) Terminate Lessee' 5 right to possession of the Premises by any lawful means, in which case this Lease shall terminate and Lessee shall immediately surrender possession of the Premises to Lessor. In such event Lessor shall be entitled to recover from Lessee: 1) The worth at the time of award of the unpaid Rent which had been earned at the time of termination; 2) The worth at the time of award of the amount by which the unpaid Rent which would have been earned after termination until the time of award exceeds the amount of such loss that Lessee proves could have been reasonably avoided; 3) The worth at the time of award of the amount by which the unpaid Rent for the balance of the Term after the time of award exceeds the amount of such loss that Lessee proves could be reasonably avoided; and 4) Any other amount deemed necessary and/or allowable by applicable statute or decision to O1/24/*2 aBl7u/2588/oo 14- BIB] 08-03-1998-U01 03:04:20PM-U01 ADMIN-U01 CCRES-U02 92-U02 16-U02 ^!AW# 1 compensate Lessor for all the detriment proximately caused by Lessee's failure to perform its obligations under this Lease or which, in the ordinary course of events, would be likely to result therefrom, including, but not limited to, the cost of recovering possession of the Premises, expenses of reletting, expenses of restoring the Premises to the condition required hereunder if applicable), reasonable attorneys fees, and any other reasonable costs. I The worth at the time of a*ard" of the amounts referred to in subparagraphs 1) and 2) above shall be computed by allowing interest at a rate equal to ten percent 10%). ii) Lessor may terminate this Lease for default by express written notice to Lessee of its election to do so. Such termination shall not relieve Lessee of any obligation hereunder which has accrued prior to the date of such termination. In the event of such termination, Lessor shall be entitled to recover from Lessee the amounts determined pursuant to paragraph i) above. b) Reasonable Rental Value. In any action for unlawful detainer commenced by Lessor against Lessee by reason of any default hereunder, the reasonable rental value of the Premises for the period of the unlawful detainer shall be deemed to be the amount of Rent and other charges reserved in this Lease for such period unless Lessor or Lessee shall prove to the contrary by competent evidence. c) Cumulative Remedies. Except as may be specifically provided herein, the rights and remedies reserved to Lessor and Lessee herein, including those not specifically described, shall be cumulative and, except as provided by California statutory or decisional law in effect at the time, either Lessor or Lessee may pursue any or all of such rights and remedies at the same time or otherwise. d) Lessor s Non-Waiver. No delay or omission of Lessor to exercise any right or remedy shall be construed as a waiver of any right or remedy or of any default by Lessee hereunder. The acceptance by Lessor of Rent or any additional Rent hereunder shall not be a waiver of any preceding breach or default by Lessee of any provision hereof, other than the failure of Lessee to pay the particular Rent accepted, regardless of Lessor's knowledge of such preceding breach or default at the time of acceptance of such rent, or a waiver of Lessor's right to exercise any remedy available to Lessor by virtue of such breach or default. The acceptance of any 01/24/92 BIB] 08-03-1998-U01 03:04:20PM-U01 ADMIN-U01 CCRES-U02 92-U02 16-U02 ^!AW# a payment from a debtor in possession, a trustee, a receiver or any other person acting on behalf of Lessee or Lessee's estate shall not waive or cure a default under Section 12.1. e) Lessor's Reentry. Lessee hereby irrevocably consents to Lessor' 5 peaceable reentry, if Lessor so elects, to the Premises upon the occurrence of any of the events of default specified in Section 12.2 a)(ii) above, including the expiration of any applicable cure period. f) Lessorts Advances. In the event of any default by Lessee in the payment of money, other than Rent, or the performance of Lessee's obligations required under this Lease, and the expiration of any period expressly provided for herein for Lessee to cure said default after the delivery of notice by Lessor, in addition to the other remedies herein granted to Lessor, Lessor may, but shall not be obligated to do so, and without waiving or releasing Lessee from any obligations of.this Lease, make any payment and perform any other act on Lessee's part to be made or performed as provided in this Lease. All sums paid by Lessor and all necessary incidental costs, together with interest thereon at the rate of ten percent 10%) per annum from the date of the payment by Lessor shall be payable by Lessee to Lessor on demand. The sums shall be deemed to be additional Rent and subject to the same consequences as herein provided for failure to pay Rent. 12.3 Default by Lessor. Lessor shall not be deemed to be in default in the performance of any obligation required to be performed by it hereunder unless and until it has failed to perform such obligation within thirty 30) days after written notice by Lessee to Lessor specifying in reasonable detail the nature and extent of any such failure; provided, however, that if the nature of Lessor' S obligation is such that more than thirty 30) days are required for its performance, then Lessor shall not be deemed to be in default if it shall commence such performance within such thirty 30) day period and thereafter diligently prosecutes the same to completion. 12.4 Legal Expenses and Collection Costs. If either party incurs any expense, including actual costs of collection, reasonable attorneys' fees, expenses of discovery, preparation for litigation1 expert witness fees and litigation expenses and costs, in connection with any action or proceeding instituted by either party by reason of any default or alleged default of the other party hereunder, the party prevailing in such action or proceeding shall be entitled to recover its reasonable expenses from the other party. For purposes of this provision, in any unlawful detainer or other action or proceeding instituted by Lessor based upon any default or alleged default by Lessee hereunder, Lessor shall be deemed the prevailing party if a) judgment is entered in favor of Lessor or b) 01/24/92 8617u/2588/00 16- BIB] 08-03-1998-U01 03:04:20PM-U01 ADMIN-U01 CCRES-U02 92-U02 16-U02 ^!AW# 5 prior to trial or judgment Lessee shall pay the Rent and charges claimed by Lessor, or eliminate the condition(s), cease the act(s) or otherwise cure the omission(s) claimed by Lessor to constitute a default by Lessee hereunder. ARTICLE XIII. HOLDING OVER This Lease shall terminate and become null and void without further notice upon the expiration of the Term herein specified, and any holding over by Lessee after such expiration shall not constitute a renewal or extension hereof or give Lessee any rights under this Lease, except when in writing signed by both parties hereto. ARTICLE XIV. ACCESS BY LESSOR In addition to the right of Lessor to reserve use of the Premises under Article IV, Section 4.1, Lessor and those agents, contractors, servants and employees of Lessor who are identified in writing to Lessee shall have the right, after reasonable notice to Lessee, to enter the Premises during normal business hours to examine the Premises, to perform any obligation of Lessor or to exercise any right or remedy reserved to Lessor in this Lease. ARTICLE XV. QUIET ENJOYMENT Upon payment by Lessee of the Rents provided herein, and upon the observance and performance of all of the covenants, terms and conditions on the part of Lessee to be performed hereunder, Lessor covenants and warrants that Lessee may peaceably and quietly hold and enjoy the Premises for the Term. ARTICLE XVI. TAXES Lessee shall be responsible for, and agrees to pay* prior to delinquency, any and all taxes* assessments, installments of taxes, levies, fees, and other governmental charges of every kind or nature hereinafter collectively called tiTaxes1?) in the event such Taxes are levied or assessed by municipal, county, state, federal, or other taxing or assessing authorities or governmental agencies or entities upon, against, or with respect to i) the Premises or any portion thereof; ii) all fixtures, equipment, and any other property of any kind owned by Lessee or placed, installed, or located within, upon, or about the Premises for which Lessor might be assessed or which might become a lien on the Premises if not paid by Lessee; iii) all alterations, additions, and improvements of 01/24/92 BIB] 08-03-1998-U01 03:04:20PM-U01 ADMIN-U01 CCRES-U02 92-U02 16-U02 ^!AW#whatsoever kind or nature, if any, made to the Premises or the Improvements; iv) rentals or other charges payable by Lessee to Lessor other than state and federal income taxes applicable to Lessor); and v) any other interest in the Premises including the leasehold interest created by this Lease), irrespective of whether any of the items described in clauses i) through v) above are assessed as real or personal property, and irrespective of whether any of such items are assessed to or against Lessor, Lessee or any other person. ARTICLE XVII. FORCE MAJEURE In the event the performance by either party of any of its obligations hereunder is delayed by reason of the act or neglect of the other party, act of God, stormy or inclement weather, strike, labor dispute, boycott, lockout or other like defensive action by such party, inability to obtain labor or materials, governmental restrictions, riot, insurrection, war, catastrophe, fire or other casualty, act of the public enemy, or any other cause, whether similar or dissimilar, beyond the reasonable control of the party from whom such performance is due unavoidable delays"), the period for the commencement or completion thereof shall be extended for a period equal to the period during which performance is so delayed. ARTICLE XVIII FINANCING/HYPOTHECATION 18.1 Mortgages. Lessee may, with notice to and the prior consent of Lessor, mortgage this Lease and the leasehold estate hereby created and Lessee0s interest in the Improvements. The execution and delivery of any Mortgage shall not be deemed to constitute an assignment or transfer of this Lease nor shall the owner of all the indebtedness secured by any Mortgage Mortgagee"), as such, be deemed an assignee or transferee of this Lease so as to require such holder to assume the performance hereunder. Lessor and Lessee agree to the following: a) If Lessee or any Mortgagee shall have delivered to Lessor prior written notice of the address of any Mortgagee, Lessor shall mail to such Mortgagee a copy of any notice or other communication required to be made by Lessor to Lessee under this Lease at the time of giving such notice or communication to Lessee. b) In the event of any default by Lessee under the provisions of this Lease, any Mortgagee shall have the same periods as are given Lessee for remedying such default or causing it to be remedied, plus, in each case, an additional period of thirty 30) days after the expiration thereof or 01/24/92 BIB] 08-03-1998-U01 03:04:20PM-U01 ADMIN-U01 CCRES-U02 92-U02 16-U02 ^!AW# I after Lessor has given notice of such default to the Mortgagee pursuant to subsection 18.2(a) above, whichever is later. In addition, in those instances which require any *ortgagee to be in Possession of the Premises to cure any default by Lessee, the time herein allowed any Mortgagee to cure any default by Lessee shall be deemed extended to include the period of time required by any Mortgagee to obtain such possession with due diligence, and in those instances in which any Mortgagee is prohibited by any process or injunction issued by any court or by reason of any action by any court having jurisdictio* of any bankruptcy or insolvency proceeding involving Lessee from commencing or prosecuting foreclosure or other appropriate proceedings in the nature thereof, the time herein allowed any Mortgagee to prosecute such foreclosure or other proceeding shall be extended for the period of such prohibition provided such Mortgagee makes payments of rent and performs all other monetary obligations of Lessee in accordance with the terms and within the time frames set forth in this Lease. In such event any Mortgagee, without prejudice to its rights against Lessee, shall have the right, but not the obligation, to cure such default within the applicable grace periods provided for herein whether such default consists of the failure to pay rent or any other monetary obligations to Lessor or the failure to perform any other matter or thing which Lessee is hereby required to do or perform, and Lessor shall accept such performance on the part of such Mortgagee as though the same had been done or performed by Lessee and for such purpose Lessor and Lessee hereby authorize such Mortgagee to enter upon the Premises and to exercise any of its rights and powers under this Lease and, subject to the provisions of this Lease, under the Mortgage. c) In the event of any default by Lessee, and if prior to the expiration of the applicable grace period specified in subsection 18.2(b) above, a Mortgagee shall give Lessor written notice that it intends to undertake the curing of such default, or to cause the same to be cured, or to exercise its rights to acquire the leasehold interest of Lessee by foreclosure or otherwise, and shall immediately commence and then proceed with all due diligence to do so, whether by performance on behalf of Lessee of its obligations under this Lease, or by entry on the Premises by foreclosure or otherwise, then Lessor shall not terminate or take any action to effect a termination of this Lease or reenter, take Possession of or sublet the Premises or similarly enforce performance of this Lease in a mode Provided by law so long as such Mortgagee is with all due diligence and in good faith engaged in the curing of such default and is otherwise making payments of all rent and performing all other monetary obligations of Lessee in accordance with the terms and within the time frames set forth in this Lease. If the default is not susceptible to being cured by Mortgagee, such default shall be deemed cured if Mortgagee shall promptly cure all curable defaults in 01/24/92 BIB] 08-03-1998-U01 03:04:20PM-U01 ADMIN-U01 CCRES-U02 92-U02 16-U02 ^!AW#accordance with the terms of this Article 18 and shall proceed in a timely and diligent manner to accomplish the foreclosure of Lessee' 5 interest d) In the event Lessee's interest under this Lease is terminated by Lessor for any reason including, without limitation, Lessee 5 default or rejection of the Lease by a trustee in bankruptcy or a debtor in possession and provided an unsatisfied Mortgage stands of record) or in the event Lessee's interest under this Lease shall be sold, assigned or transferred pursuant to the exercise of any remedy of any Mortgagee, or pursuant to judicial or other proceedings, Lessor shall execute and deliver a new lease of the Premises to such Mortgagee or its nominee, purchaser, assignee or transferee, upon written request by such Mortgagee or such nominee, purchaser, assignee or transferee given within sixty 60) days after such sale, assignment or transfer for the remainder of the term of the Lease with the same agreements, covenants and conditions except for any requirements which have been fulfilled by Lessee prior to termination) as were contained herein and with priority equal to that hereof; provided, however, that such Mortgagee shall promptly cure any default of Lessee susceptible to cure by such Mortgagee, and provided further that if more than one Mortgagee requests such new lease, the Mortgagee holding the most senior leasehold mortgage shall prevail. Upon execution and delivery of such new lease, Lessor shall cooperate with the new tenant, at the expense of the said new tenant, in taking such action as shall be necessary to cancel and discharge this Lease and to remove Lessee named herein from the Premises. In such event the ownership of the Improvements to the extent owned by Lessee shall be deemed to have been transferred directly to such transferee of Lessee's interest in this Lease. e) In the event of a default under a Mortgage, such Mortgagee may exercise with respect to the Premises any right, power or remedy under the Mortgage which is not in conflict with the provisions of this Lease. Further, in the event of a default under a Mortgage, such Mortgagee shall give the Lessor ninety 90) days notice to cure the default and/or purchase the Mortgagee's interest in the note prior to the institution of foreclosure proceedings. f) The Lessor shall have a first right of refusal to purchase the Mortgagee's interest in either the note and deed of trust or a sale of the building in the event of a foreclosure in which the City has chosen not to cure the default under e) above. g) Notwithstanding Article 11 hereof, this Lease may be assigned and subject to Lessor's first right of refusal in f) above, to any Mortgagee, pursuant to foreclosure or 01/24/92 8817u/258B/0O 20- BIB] 08-03-1998-U01 03:04:20PM-U01 ADMIN-U01 CCRES-U02 92-U02 16-U02 ^!AW# I similar proceedings, or pursuant to an assignment or other transfer of this Lease to such Mortgagee in lieu thereof, and may be thereafter assigned by such Mortgagee with Lessor's consent and any Mortgagee shall be liable to perform the obligations herein imposed on Lessee only for and during the period it is in possession or ownership of the leasehold estate created hereby; provided, however, that the foregoing shall not in any way limit the necessity of curing any default under this Lease, as provided elsewhere in this Article 18, in order to prevent termination of this Lease, or exercise of its other remedies, by Lessor. h) No surrender except a surrender upon the expiration of the Term of this Lease as extended or upon termination by Lessor pursuant and subject to the provisions of this Lease) by Lessee to Lessor of this Lease, or of the Premises, or any part thereof, or of any interest therein, and no termination of this Lease by Lessee shall be valid or effective, and-neither this Lease nor any of the terms hereof may be amended, modified, changed or cancelled and no consent of Lessee hereunder shall be valid or effective without the prior written consent of any Mortgagee. i) Subject to Lessor's rights in e) and f) above, Lessor consents to a provision in any Mortgage or otherwise for an assignment of rents from subleases of the Premises to the holder thereof, effective upon any default under such Mortgage, provided that all such assignments will, by their terms, terminate upon termination of this Lease. j) If at any time there shall be more than one Mortgage, the holder of the Mortgage prior in lien shall be vested with the rights under subsection 18.1(b) hereof other than the provisions for receipt of notices as provided herein) to the exclusion of the holder of any junior Mortgage; provided, however, that if the holder of a first lien Mortgage shall fail or refuse to exercise the rights set forth in said subsection 18.1(b), each holder of a Mortgage in the order of the priority of their respective liens shall have the right to exercise such rights provided that in no event shall the exercise of such rights by all such holders of a Mortgage extend the period for remedy or cure of defaults by more than thirty 30) days beyond the deadline for remedy or cure by the holder of the first lien Mortgage as provided herein, and provided further, however, that with respect to the right of the holder of a Mortgage under subsection 18.1(d) hereof to request a new lease, such right may, notwithstanding the limitation of time set forth in said Section, be exercised by the holder of any junior mortgage, in the event the holder of a prior Mortgage shall not have exercised such right within such sixty 60) day period after the receipt of Lessor's termination notice, provided that such junior Mortgagee must exercise such 01/24/92 RR17u*2S*R*OO BIB] 08-03-1998-U01 03:04:20PM-U01 ADMIN-U01 CCRES-U02 92-U02 16-U02 ^!AW#right by no later than seventy-five 75) days after the giving of notice by Lessor of termination of this Lease as provided in said Article 18. k) The foreclosure of a Mortgage, or any sale thereunder, whether by judicial proceedings or by virtue of any power contained in any Mortgage, or any conveyance of the leasehold estate created hereby from Lessee to any Mortgagee through, or in lieu of1 foreclosure or other appropriate proceedings in the nature thereof, shall not breach any provision of or constitute a default under this Lease, and upon such foreclosure, sale or conveyance Lessor shall recognize any Mortgagee, or any purchaser at such foreclosure sale, as Lessee hereunder. 18.2 No Settlement Without Mortgagee Consent. Lessor and Lessee shall not settle any condemnation proceeding or insurance claim with respect to the Premises and any Additional Improvements without any Mortgagee's prior written consent, provided such consent is not unreasonably withheld or delayed. 18.3 No Subordination. Notwithstanding anything else herein contained, Lessor and Lessee acknowledge and agree that neither Lessorts interest as fee owner of the Premises nor Lessor's reversionary interest in the Premises shall be subordinate to any Mortgage or any other lien, mortgage, deed of trust, pledge or other encumbrance of Lessee's leasehold estate and rights hereunder. ARTICLE XIX. RENEWAL OPTION 19.1 Option to Extend. Provided that Lessee is not otherwise in default under the terms of this Lease, and specifically provided that i) Lessee continues to qualify as a tax exempt nonprofit organization under Section 5.01(c) of the Internal Revenue Code, or its equivalent successor section1 ii) that Lessee continue to operate under the name of Boys and Girls Club of Coachella Valley" or other name acceptable to Lessor, and iii) that Lessee continues to comply with the terms of Article III of this Lease, then, Lessee may at Lessee's election, extend the term of this Lease by a ten 10) year period. Such election shall be exercised by Lessee giving written notice to Lessor of intent to do so no more than three 3) years, but no less than one 1) year, prior to the then scheduled expiration of the initial term of this Lease or any extension thereof. 19.2 Continuation of Terms. The terms and conditions of this Lease during any such extension, specifically including all obligations of the Lessor and Lessee hereunder, shall 01/24/92 BIB] 08-03-1998-U01 03:04:20PM-U01 ADMIN-U01 CCRES-U02 92-U02 16-U02 ^!AW# 5 continue in full force and effect except as may be expressly modified by subsequent written mutual agreement of Lessor and Lessee. ARTICLE XX. MISCELLANEOUS 20.1 Waiver. The waiver by either Lessor or Lessee of any breach of any term, condition or covenant contained herein shall not be deemed a waiver of such term, condition or covenant or any subsequent breach of the same or any other term, condition or covenant contained herein. 20.2 Notices. All notices, demands or other writings to be made, given or sent hereunder, or which may be so given or made or sent by either *essor or Lessee to the other shall be deemed to have been given when in writing and personally delivered or if mailed on the third 3rd) day after being deposited in the United States mail, certified or registered, postage prepaid, and addressed to the respective parties at their addresses set forth below: To Lessor: City of La Quinta 78-105 Calle Estado La Quinta, California 92253 To Lessee: Boys and Girls Club of Coachella Valley P.O. Box 188 Indio, California 92202 20.3 Relationship of Parties. Nothing contained herein shall be deemed or construed by the parties hereto, nor by any third party, as creating the relationship of principal and agent or of partnership or of joint venture between the parties hereto, it being understood and agreed that neither the method of computation of rent, nor any other provision contained herein, nor any acts of the parties herein, shall be deemed to create any relationship between the parties hereto other than the relationship of Lessor and Lessee. Nor shall anything herein be deemed or construed to imply financial support for Lessee s operation apart from the provisions of this Lease. 20.4 Accord and Satisfaction. No payment by Lessee or receipt by Lessor of a lesser amount than the Rent or other charges herein stipulated shall be deemed to be other than on account of the earliest due stipulated Rent or other charges, nor shall any endorsement or statement on any check or any letter accompanying any check or payment as Rent or other 01/24/92 8817u*2588/00 BIB] 08-03-1998-U01 03:04:20PM-U01 ADMIN-U01 CCRES-U02 92-U02 16-U02 ^!AW#charges be deemed an accord and satisfaction, and Lessor shall accept such check or payment without prejudice to Lessor's right to recover the balance of such Rent or other charges or pursue any other remedy in this Lease provided. 20.5 Time of Essence. Time is hereby expressly declared to be of the essence of this Lease and of each and every term, covenant and condition hereof which relates to a date or period of time. 20.6 Remedies Cumulative. The remedies herein given to Lessor and Lessee shall be cumulative and are given without impairing any other rights or remedies given Lessor and Lessee by statute or law now existing or hereafter enacted, and the exercise of any one 1) remedy by Lessor or Lessee shall not exclude the exercise of any other remedy. 20.7 Effect of Invalidity. If any term or provision of this Lease or the application thereof to any person or circumstances shall, to any extent, be invalid or unenforceable, the remainder of this Lease, or the application of its terms and provisions to persons and circumstances other than those to which it has been held invalid or unenforceable shall not be affected thereby, and each term and provision of this Lease shall be valid and enforceable to the fullest extent permitted by law. No acquisition by Lessor of all or any of the interest of Lessee in or to the Premises or the Improvements, and no acquisition by Lessee of all or any interest of Lessor in or to the Premises shall constitute or work a merger of the respective interest, unless expressly provided for. 20.8 Successors and Assigns. This Lease and the covenants and conditions contained herein shall be binding upon and inure to the benefit of and shall apply to the successors and assigns of Lessor and to the permitted successors and assigns of Lessee, and all references in this Lease to Lessee" or Lessor'1 shall be deemed to refer to and include all permitted successors and assigns of such party. 20.9 Entire Agreement. This Lease and the exhibits hereto contain the entire agreement of Lessor and Lessee with respect to the matters covered hereby, and no other agreement, statement of promise made by either Lessor or Lessee which is not contained herein, shall be valid or binding. No prior agreement, understanding or representation pertaining to any such matter shall be effective for any purpose. No provision of this Lease may be amended or added to except by an agreement in writing signed by Lessor and Lessee. 01/24/92 8817u/2598/00 24- BIB] 08-03-1998-U01 03:04:20PM-U01 ADMIN-U01 CCRES-U02 92-U02 16-U02 ^!AW# I 20.10 Interest on Past-Due Obligations. Any amount due from Lessee to Lessor hereunder which is not paid when due including, without limitation, amounts due as reimbursement to Lessor for costs incurred by Lessor in performing obligations of Lessee hereunder upon Lessee s failure to so perform) shall bear interest at the rate of ten 10%) percent per annum from the date due until paid, unless otherwise specifically provided herein, but the payment of the interest shall not excuse or cure any default by Lessee under this Lease. 20.11 Execution of Lease; No Option. The submission of this Lease to Lessee shall be for examination purposes only, and does not and shall not constitute a reservation of or option for Lessee to lease, or otherwise create any interest by Lessee in the Premises. Execution of this Lease by Lessee and return to Lessor shall not be binding upon Lessor notwithstanding any time interval, until Lessor has in fact executed and delivered this Lease to Lessee. 20.12 Corporate Authorit*. Each individual executing this Lease on behalf of a corporation, nonprofit corporation, partnership or other entity or organization, represents and warrants that he is duly authorized to execute and deliver this Lease on behalf of said corporation, partnership, entity or organization and that this Lease is binding Upon same in accordance with its terms. Lessee shall, at Lessor's reguest, deliver a certified copy of its board of directors resolution or certificate authorizing or evidencing such execution. 20.13 Controlling Law. This Lease shall be governed by and construed in accordance with the laws of the State of California. 20.14 Specific Performance. Nothing contained in this Lease shall be construed as or shall have the effect of abridging the right of either Lessor or Lessee to obtain specific performance of any and all of the covenants or obligations of the other party under this Lease. 20.15 Survival of Indemnities and Warranties. The obligations of the indemnifying party under each and every indemnification and hold harmless provision contained in this Lease shall survive the expiration or earlier termination of this Lease to and until the last to occur of a) the last date permitted by law for the bringing of any claim or action with respect to which indemnification may be claimed by the indemnified party against the indemnifying party under such provision or b) the date on which any claim or action for which indemnification may be claimed under such provision is fully and finally resolved, and, if applicable, any compromise thereof or judgment or award thereon is paid in full by the indemnifying party and the indemnified party is reimbursed by 01/24/92 8817u/2568/O0 2S- BIB] 08-03-1998-U01 03:04:20PM-U01 ADMIN-U01 CCRES-U02 92-U02 16-U02 ^!AW #the indemnifying party for any amounts paid by the indemnified party in compromise thereof or upon judgment or award thereon and in defense of such action or claim, including reasonable attorneys' fees incurred. The representations, warranties, and covenants of the parties contained herein shall survive the termination of this Lease without regard to any investigation made by the parties. 20.16 Estoppel Certificate. a) Each of the parties shall at any time and from time to time upon not less than twenty 20) days' prior notice by the other, execute, acknowledge and deliver to such other party a statement in writing certifying that this Lease is unmodified and is in full force and effect or if there shall have been modifications that this Lease is in full force and effect as modified and stating the modifications), and the dates to which the rent has been paid, and stating whether or not to the best knowledge of the signer of such certificate such other party is in default in performing or observing any provision of this Lease, and, if in default, specifying each such default of which the signer may have knowledge, and such other matters as such other party may reasonably request, it being intended that any such statement delivered by Lessee may be relied upon by Lessor or any prospective purchaser of the fee or any prospective mortgagee or encumbrancer thereof or any prospective assignee of any mortgage or trust deed upon the fee, and it being further intended that any such statement delivered by Lessor may be relied upon by any prospective assignee of Lessee's interest in this Lease, any prospective sublessee of all or part of the Premises or any prospective mortgagee of Lessee. Reliance on any such certificate may not extend to any default as to which the signer of the certificate shall have had no actual knowledge. b) If Lessor desires to refinance or transfer the Leased Premises, or any part thereof, Lessee hereby agrees to deliver to any lender or transferee designated by Lessor such financial information concerning Lessee as may be reasonably required by such lender or transferee and is reasonably available to Lessee. Such statements shall include, but shall not be limited to, the past three 3) years of financial statements of Lessee. All such financial information shall be received by Lessor in confidence and shall be used only for the purposes set forth herein. 01/24/92 8817u/2588/00 26- BIB] 08-03-1998-U01 03:04:20PM-U01 ADMIN-U01 CCRES-U02 92-U02 16-U02 ^!AW!# 5 IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the day and year first above written. LESSOR11 CITY OF LA QUINTA By: John Pena, Mayor Attest City Clerk Approved As to Form: Dawn C. Honeywell, City Attorney LESSEE" BOYS AND GIRLS CLUB OF COACHELLA VALLEY, a California By: Its: O1/24/*2 aal7u/2588/oo 27- BIB] 08-03-1998-U01 03:04:20PM-U01 ADMIN-U01 CCRES-U02 92-U02 16-U02 ^!AW"# I *--- EXHIBIT A" DESCRIPTION OF PREMISES The footprint of the proposed Improvements as designated on plan The preliminary legal description prepared by the City Engineer is as follows: In the event that the actual building footprint differs from the preliminary description, said description shall be deemed to conform to the actual building footprint. O1/24/g2 8817u/2588/OO Exhibit A BIB] 08-03-1998-U01 03:04:20PM-U01 ADMIN-U01 CCRES-U02 92-U02 16-U02 ^!AW## E EXHIBIT B" *COPE OF DEVELOPMENT To be Inserted) 01/24/92 8817u/2588/O0 Exhibit B BIB] 08-03-1998-U01 03:04:20PM-U01 ADMIN-U01 CCRES-U02 92-U02 16-U02