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HomeMy WebLinkAboutSublease Episcopal Community ServicesAttachment 3 SUBLEASE This. Sublease ("Sublease") is dated May 1, 2014 and is effective as of the latter of the signature dates below ("Effective Date") between the BOYS & GIRLS CLUBS OF GREATER SAN DIEGO, a California nonprofit corporation (the "Club" or "Landlord") and EPISCOPAL COMMUNITY SERVICES, a California nonprofit corporation ("EC Services" or "Subtenant") (each a "party" and collectively the "parties"). Recitals A. The Club leases the real property located at 1430 "D" Avenue, National City, California 91950, County of San Diego, State of California. (the "Property" sometimes referred to as the "Payne Family Branch"), as more particularly described in Exhibit "A" attached hereto and incorporated herein by reference, from the City of National City ("City"), which property is improved with a `Building". A true and correct copy of' said Lease between the Club and the City of National City is attached hereto as Exhibit `B" and incorporated herein by reference. B. Pursuant to the Lease between the City and the Club dated August 16, 2011, Club is granted the right to sublet a portion of the Property, including the Building on the Property, only with the prior written consent of the City. Therefore, the effectiveness of this Sublease is expressly made contingent upon the Club's receipt of the City's written consent, if written consent is required by the City, as set forth below. C. EC Services desires to sublease a portion of the Property (the "Premises" as defined below) for the purpose of operating a Head Start Program but may not begin operating the Head Start Program until (i) certain improvements have been made to outfit the Premises for the Head Start Program, including the installation of a partition between the classrooms in the Premises and a door to provide access between the kitchen and the classrooms, as depicted on the Floor Plan attached hereto as Exhibit "C" ("Front -End Improvements") and (ii) all permits and licenses required to lawfully use the Premises for the head Start Program ("Program Approvals") have been obtained and are in force or waived by EC Services. Sublease -BOYS' AND GIRLS' CLUBS AND EC SERVICES NATIONAL CITY BRANCH 1 Attachment 3 D. The parties intend that EC Services have access to the Premises after the Effective Date of this Sublease to begin obtaining Program Approvals and readying the Premises for operation of the Head Start Program, but that Rent will not be payable or begin to accrue until the Commencement Date. E. The Club desires to sublease a portion of the Property to EC Services for said purpose. NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 1. Subleased Premises. 1.1 Sublease Contingent Upon and Subject to Approval by City. Subject to the written approval of this Sublease by the City, the written consent hereto by the City and to the provisions of the Lease between the City and the Club, the Club hereby subleases to EC Services and EC Services subleases from the Club, upon all of the terms and conditions set forth in this Sublease, exclusive use of the Youth Center, Youth Office, storage and restrooms as listed and/or depicted on the Floor Plan attached hereto as Exhibit "C" and incorporated herein by reference (the "Premises") as well as non-exclusive use of the common areas as described below. EC Services shall have no right of possession of any remaining portions of the real property or improvements located thereon. This Sublease subordinates to the applicable covenants and conditions of the Lease, as amended from time to time, between the City and the Club. In the event of conflict between the provisions of this Sublease and those of the Lease, as amended between the City and Club, the Lease, as amended between the City and the Club shall control. 1.2 Sublease Contingent Upon and Subject to EC Service's Ability to Obtain Required Licenses and Approvals. The effectiveness of this Sublease is contingent upon the ability of EC Services to obtain the required license and environmental approvals, clearances and certifications at the sole cost and expense of EC Services. In the event EC Services does not, after good faith attempts, obtain all required licences, environmental approvals, clearances and certifications, any rent payments made shall be reimbursed to EC Services and no further payments shall be required. Except, any modifications or alterations made to the Premises in anticipation of occupation by EC Services shall returned to the condition prior to the modification or alteration, at the sole and absolute discretion of the Club. Sublease -BOYS' AND GIRLS' CLUBS AND EC SERVICES NATIONAL CITY BRANCH 2 Attachment 3 1.2 Acceptance of Premises. 1.2.1 By signing this Sublease, EC Services represents and warrants that is has independently inspected the Premises and made or will make all tests, investigations, and observations necessary to satisfy itself of the condition of the real property. EC Services agrees it is relying solely on such independent inspection, tests, investigations, and observations in making this Sublease. EC Services further acknowledges that the Premises is in the condition called for by this Sublease and EC Services does not hold Club responsible for any defects in the real property. EC Services acknowledges that neither Landlord nor Landlord's agent, if any, has made any representation or warranty as to the present or future suitability of the Premises or the building for the conduct of EC Services' business. 1.2.2 California Civil Code Section 1983 Disclosure. EC Services further acknowledges that the Property has not been inspected by a Certified Access Specialist (CASp) and it has not been determined or reported whether the Property is in compliance with California Civil Code Section 55.53 to meet all applicable construction related access standards. The Property has not been reviewed for any ecologically sensitive areas including but not limited to wetlands, flood plains, aquifers or conservation areas. 2. Term; Commencement Date. 2.1 The term ("Term") of this Sublease is for a period of fifty-nine (59) months and shall commence on the commencement Date defined in Paragraph 2.2 below and shall expire on June 30, 2019 unless sooner terminated under the terns of this Sublease. 2.2 Commencement Date. The Commencement Date of this Sublease shall be the earlier of completion of the Front -End Improvements and Program Approvals or the date the Premises is delivered to EC Services, but in no event later than August 11, 2014. 2.3 Option to Extend Term. As long as EC Services is not in default of any material term or condition of this Sublease, upon written approval of both parties, EC is granted the option to extend the Term of this Sublease for an additional term of five (5) years ("Extended Term"), on the same terms and conditions as provided in this Sublease. EC Services shall exercise its option to extend, if at all, by delivering written notice to Club of such election ("Notice of Election") no later than December 31, 2018. The Extended Term shall become effective upon the written approval by the Club. In addition, the Extended Term shall be subject to renewal of the charter petition, which is controlled by the San Diego Unified School District. Sublease -BOYS' AND GIRLS' CLUBS AND EC SERVICES NATIONAL CITY BRANCH 3 Attachment 3 3. Rent. Rent and Additional Costs paid to the Club by EC Services shall be referred to as Monthly Consideration. 3.1 Base Rent. EC Services shall pay to Club a Base Rent as minimum monthly rent, without deduction, setoff, prior notice, or demand the sum of $3,534.30 per month ("Base Rent"). Monthly installments of Base Rent shall be payable monthly, in advance, on the first day of each month. The first month's rent shall be paid upon execution of this Sublease. The rent for any partial month shall be prorated on the basis of a thirty (30) day month. Rent shall be paid in lawful money of the United States to Club at the address set forth on the signature page of this Sublease or to such other person or at such other place as Club may designate in writing. 3.2 Rent Increase. The Base Rent shall be increased annually on the anniversary of the Commencement Date according to the All Urban Consumer Price Index for San Diego County, published by the United States Department of Labor, Bureau of Labor Statistics ("Index"), which is published for the date nearest the date of the anniversary of the Commencement Date of this Sublease as compared to the date immediately preceding the month in which the term of this Sublease commenced ("Beginning Index"). The Rent shall in no event ever decease below the prior year's Base Rent. 3.3 Additional Costs. In addition to the Base Rent, EC Services shall pay to the Club the following additional costs: 3.3.1 Utilities. EC Services shall pay to the Club 15% of the costs of the utilities, including water, gas and electrical for the Property. 3.3.2 Other Upkeep. EC Services shall pay to the club 18% of the cost of security, exterminator expenses and landscaping costs for the Property. 3.3.3 Payment of Additional Costs. Unless otherwise agreed in writing, EC Services shall pay all Additional Costs then due with the next monthly Rent installment. Additional Costs shall be estimated from the prior year's average monthly costs based on the Club's fiscal year which runs from July 1 through June 30 of each year ("Fiscal Year"). The difference between the estimated actual cost of utilities and the estimated paid per month will be reconciled by the Club quarterly and paid by or credited to EC Services on a quarterly basis, within thirty (30) days of the date of said bill. EC Services acknowledges and agrees that the Additional Costs after the Commencement Date may increase from the prior year's costs as the Premises where the Head Start Program will be operated may not have been used to the extent anticipated by this Sublease. Sublease -BOYS' AND GIRLS' CLUBS AND EC SERVICES NATIONAL CITY BRANCH 4 Attachment 3 3.3.4 EC Services shall be responsible for reimbursing the Club for the first $5,000 charged to the Club for architectural costs associated with redesigning plumbing for and the construction/replacement cost of the adult toilets with child toilets. 4. Use and Obligations of Parties. 4.1 Use. EC Services shall use those portion of the Club's Property subleased to EC Services herein solely for EC Services' Head Start Program, with a maximum limit of forty-five (45) pre-school children, Located on the subleased Premises at any one time, and for no other purpose. 4.2 Compliance With Law; Rules and Regulations. 4.2.1 Compliance with Law. EC Services shall comply with and observe all statutes, ordinances, regulations, orders and decrees of federal, state and city governments, or any departments, bureaus or agencies thereof, and all covenants and restrictions and requirements regulating the use of the Premises, whether now in force or promulgated in the future. Any and all expense resulting from such compliance shall be born by EC Services. EC Services shall not use nor permit the use of the Premises in any manner which will tend to create waste or a nuisance or shall tend to disturb any other Subtenants in the building in which the Premises is located (the "Building"). 4.2.2 Rules and Regulations. EC Services agrees that it will abide by, keep and observe all reasonable rules and regulations which the Club may make from time to time for the management, safety, care and cleanliness of the Premises, the Building and the surrounding areas as well as for the convenience of other occupants and Subtenants of the Building, if any. The violation of any such rules and regulations shall be deemed a material breach of this Agreement by EC Services. 4.3 Obligations of EC Services. 4.3.1 EC Services shall obtain all required regulatory certificates necessary for the operation of the Head Start Program on the Premises. 4.3.1.1 In addition to any other requirements hereunder, EC Services shall provide the Club with copies of all licenses, regulatory permits and the required documentation needed to maintain currency, including but not limited to proof of insurance and other documents reasonably required by the Club and/or by the City. Sublease -BOYS' AND GIRLS' CLUBS AND EC SERVICES NATIONAL CITY BRANCH 5 Attachment 3 4.3.1.2 EC Services shall comply with the regulations, policies, guidelines and requirements, including OMB Circulars No. A-95, A-110 and FMC 74-4, as they relate to the application, acceptance and use of federal funds for federally assisted projects. 4.3.1.3 EC Services shall comply with E.O. 11246, "Equal Employment Opportunity", as amended by E.O. 11375, "Amending Executive Order 11246 to Equal Employment Opportunity", and as supplemented by regulations at 41 CFR Part 60, "Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor". 4.3.1.4 Any contractor and subcontractor hired by EC Services shall fully comply with Title VII of the Civil Rights Act of 1964, as amended, the California Fair Employment Practices Act, and any other Federal and State laws and regulations hereinafter enacted. 4.3.1.5 EC Services shall comply with the Copeland "Anti - Kickback" Act (18 U.S.C. 874), as supplemented by the Department of Labor Regulations (29 CFR Part 3, "Contractors and subcontractors on public building or public work financed in whole or in part by loans or grants from the United States"). 4.3.1.6 EC Services shall comply with the provisions of the Hatch Act, which limits the political activity of employees. 4.3.2 EC Services shall provide all staff, equipment and supplies, including educational curriculum, required to meet the specified requirements of the Head Start Program. 4.3.3 EC Services shall, at EC Services' sole expense, provide janitorial services to and keep in good order and condition the Premises and all parts thereof. EC Services shall not cause or permit any waste or injury to the Premises and shall keep the Premises free from any and all objectionable noises, odors, rubbish and debris inconsistent with the proper operation of the Head Start Program. 4.3.4 EC Services shall provide meals and/or snacks for Head Start children in accordance with the Child and Adult Care Food Programs (CACFP). 4.3.5 EC Services shall provide the program resources necessary to maintain compliance of the Premises with Community Care Licensing (Title XXII of the Health and Safety Code) and Head Start Performance Standards. Sublease -BOYS' AND GIRLS' CLUBS AND EC SERVICES NATIONAL CITY BRANCH 6 Attachment 3 4.3.6 EC Services shall provide Head Start enrollment preference to the children or family of Club Members to the maximum extent allowed by the terms of its grants. 4.3.7 As a material condition of this Agreement, EC Services shall be subject to and abide by any requirements and provisions contained in the City Lease dated August 16, 2011. In addition, EC Services acknowledges that this Agreement is subject to the City's approval of the hours of operation of EC Services. 4.3.8 Taxes. 4.3.8.1 Taxes. Subtenant recognizes and understands that this Sublease may create a possessory interest subject to property taxation, and that Subtenant may be subject to the payment of real property taxes levied on such interest. EC Services further agrees to pay any and all property taxes assessed during the term of this Sublease, pursuant to Section 107 and 107.1 of the Revenue and Taxation Code, against Subtenant's possessory interest in the Premises. Provided, however, Subtenant shall have no obligation to pay taxes, whether real property or possessory interest, properly assessed to the owner of the Property, the Club or the Club's interest under the Lease. 4.3.8.2 Taxes. EC Services shall pay before delinquency all taxes, assessments, license fees, and other charges ("Taxes") that are levied and assessed against EC Services' personal property installed or located in or on the Premises, if any, and that become payable during the Term. EC Services shall furnish the Club with satisfactory evidence of these payments, if any. If any Taxes on EC Services' personal property are levied against the Club or the Club's property, or if the assessed value of the Premises or Building is increased by the inclusion of a value placed on EC Services' personal property, and if the Club pays the Taxes on any of these items or the Taxes based on the increased assessment of these items, EC Services, on demand, shall immediately reimburse the Club for the sum of the •Taxes levied against the Club and attributable to EC Services' personal property. The Club shall have the right to pay these Taxes regardless of the validity of the levy. 4.4 Responsibilities of the Parties Collectively. 4.4.1 The Parties shall work together toward the mutual goal of increasing the growth and development of pre-school age youth. 4.4.2 The Parties shall be responsible to ensure that prior to their individual performance of this Agreement, the Parties' employees, contractors and/or agents assigned to work at the Property are fingerprinted at a California State recognized facility for fingerprint clearance, as required by Title 22, community Care Licensing, State of California. Sublease -BOYS' AND GIRLS' CLUBS AND EC SERVICES NATIONAL CITY BRANCH 7 Attachment 3 The Parties agree not to place at the Property any of its employees, contractors or agents who have a conviction of a serious or violent felony, or sex offense, or controlled substance offense as defined by Title 22, Community Care Licensing, State of California. Upon request by either Party to the other, evidence of its compliance with this Section shall be provided in a commercially reasonable time frame. 4.4.3 Cooperate with the each other to ensure effective communication, optimum utilization of resources and the achievement of program goals and objectives. 4.4.4 Each Party shall establish safeguards to prohibit employees from using their positions for a purpose that is or gives the appearance of being motivated by a desire for private gain for themselves or others, particularly those with whom they have family, business or other ties. 4.4.5 The Parties acknowledge and agree that they shall not publish or use each other's name in any advertising, sales, promotional or other publicity materials without the prior written consent of the other party. 5. Maintenance, Repair and Alteration of Premises. No material alterations, improvements, installations or modifications may be made to the Premises without the prior written consent of the Club and if required, by the City. 5.1 Club's Obligations For Repair and Maintenance. Club shall repair and maintain in good condition those portions of the Premises as required by the Lease with the City of National City. To the fullest extent allowed by law, EC Services hereby expressly waives the benefits of any statute now or hereafter in effect including, but not limited to, Civil Code Sections 1941 and 1942, which would otherwise give EC Services the right to make repairs and deduct the cost thereof from rent or the right to terminate this Sublease because of Club's failure to keep the Premises in good order, condition and repair. 5.2 EC Services's Obligations For Repair and Maintenance. Subject to Club's obligations in Section 5.1 above and to the City's obligations under the Lease and ordinary wear and tear, damage due to casualty and condemnation as set forth below, at all times during the Term, EC Services' at 1C Services' sole expense, keep in good order, condition and repair the Premises. All operation, maintenance, repair and replacement shall be made in compliance with all applicable laws and governmental regulations. If EC Services fails to perform EC Services' obligations under this Section 5.2 the Club may, at Club's sole option, enter the Premises and perform such obligations on EC Services' behalf and put the Premises or any part thereof in good repair. The cost therefor, together with interest thereon at the maximum rate then allowed by law, shall be immediately due and payable by EC Services to the Club. Sublease -BOYS' AND GIRLS' CLUBS AND EC SERVICES NATIONAL CITY BRANCH 8 Attachment 3 5.3 Common Areas. Common areas ("Common Areas") means all areas and facilities outside the Premises and within the exterior boundaries of the real property on which the Building and Premises are located and which are for the general use and convenience of EC Services and other Subtenants of the Building. Common Areas include, without limitation, sidewalks, entrance ways, service areas, patios, landscaped areas, hallways, public restrooms, stairways, parking areas, driveways, roadways, loading areas, elevators, and hallways. Club shall repair and maintain the Common Areas in good condition. Club may establish and enforce reasonable rules and regulations concerning the Common Areas. Further, Club may temporarily close any of the Common Areas for maintenance or repair purposes. Club may select a person or organization to maintain and operate any of the Common Areas. Club shall also have the right to make changes to the Common Areas including, without limitation, changes in the location of driveways, entrances, exits and parking spaces. 5.5 Alterations, Additions and Improvements. EC Services shall not make any alterations, additions or improvements to the Premises or the Building without the prior written consent of Club and the City, if required under the Lease. If such consent is granted, any such alteration, addition or improvement shall be made in accordance with all applicable federal, state and municipal laws, rules and regulations as well as all covenants and restrictions. This Section shall specifically include carpeting, window coverings, air lines, power panels, electrical distribution systems, lighting fixtures, space heaters, air conditioning, plumbing, cabinets and fencing. If Club grants such consent, Club may require EC Services to remove any and all such alterations, additions or improvements at the expiration of the Term and restore the Premises and/or the Building to its condition as of this commencement of this Sublease. If Club does not require such removal and restoration, all alterations, additions and improvements shall become the property of Club and remain upon and be surrendered with the Premises at the expiration of the Term. EC Services shall pay, when due, all claims for labor or materials furnished or alleged to have been furnished to or for EC Services at or for use in the Premises or the Building, which claims are or may be secured by any mechanic's or materialmen's lien against the Premises, Building or any interest therein. Club may also require EC Services to provide Club, at EC Services' sole cost and expense, a lien and completion bond in an amount equal to 1 1/2 times the estimated cost of such alterations, additions or improvements to insure Club against any liability for mechanic's and materialmen's liens and to insure completion of the work. The bond shall meet the requirements of Civil Code Section 3143. If EC Services shall, in good faith, contest the validity of any such claim, lien or demand, then EC Services shall, at its sole expense, defend itself and Club against the same and shall pay and satisfy any such adverse judgement that may be -rendered thereon before the enforcement thereof against the Club or the Premises, upon the condition that if Club shall require, EC Services shall furnish to Club a surety bond satisfactory to Club in an amount equal to such contested lien, claim or demand indemnifying Club against Sublease -BOYS' AND GIRLS' CLUBS AND EC SERVICES NATIONAL CITY BRANCH 9 Attachment 3 liability for the same and holding the Premises free from the effect of such lien, claim or demand. In addition, Club may require EC Services to pay Club's attorneys fees and costs of participating in such action. EC Services shall give Club not less than ninety (9.0) days written notice prior to the commencement of any work in the Premises, and Club shall have the right to post notices of nonresponsibility in the Premises. Any proposed alterations, additions or improvements shall be presented to Club in written form with detailed plans. If EC Services makes any alteration, addition or improvement without the prior written consent of Club and the City, the Club may require EC Services to remove any or all of the same. 6. Insurance and Indemnity, 6.1 Insurance. 6.1.1 EC Services' Liability Insurance. EC Services shall, at EC Services' sole expense, obtain and keep in force during the Term of this Sublease a policy of public liability insurance including combined single limit bodily injury and property damage insurance insuring the Club, the City and EC Services against any liability arising out of theme. ownership, use, occupancy and maintenance of the Premises and all areas appurtenant thereto. Such insurance shall be a combined single limit policy in an amount not less than Two Million Dollars ($2,000,000.00) per occurrence. The policy shall insure performance by EC Services of the indemnity provisions of Section 6.2.Insurance required hereunder shall be with companies holding a general policy holders rating of at least A plus, or such other rating as may be required by the Club and the City. No policy shall be cancelable or subject to reduction in coverage or other modification except after thirty (30) days prior written notice to Club. EC Services shall not do or permit to be done anything which will invalidate any insurance policies required in this Section 6. All policies of insurance shall name Club and City (and at Club's option any additional parties designated by Club) as an additional insured. The limits of the insurance shall not, however, limit the liability of EC Services hereunder. Certificate of Insurance and such policy showing Club and the City as an additional insured shall be provided to Club and the City within ten (10) days of execution of this Sublease and each time said policy is renewed. 6.1.2 EC Services' Failure to Obtain Insurance. If EC Services fails to procure and maintain any insurance required by Section 6.1.1, CIub may, but shall not be required to, procure and maintain such insurance. EC Services shall immediately reimburse Club for all costs therefor together with interest thereon at the maximum rate then allowed by law. Sublease -BOYS' AND GIRLS' CLUBS AND EC SERVICES NATIONAL CITY BRANCH 10 Attachment 3 6.1.3 Increase of Insurance. EC Services shall not operate, occupy, maintain, or use the leased portions of the Property in such a manner as to result in cancellation of the Club's insurance or results in an increase of the Club's liability and/or property damage insurance. In the event that the Club's insurance is increased solely by reason of EC Services' use, occupancy, maintenance, or operation of the leased premises, then EC Services shall promptly reimburse the Club for such increased cost upon demand by the Club. EC Services acknowledges that it shall have the sole responsibility for maintaining property damage insurance on its fixtures and equipment and other personal property located at the Premises. 6.1.4 Club's surance. Club at its sole cost and expense shall procure and maintain during the Term, commercial General Liability Insurance in an amount not less than $2,000,000 per occurrence. Coverage shall include but shall not be limited to coverage for bodily injury, loss of life or property damage occurring in or about the Building, the Common Area or the Premises. The policy shall name EC Services as an additional insured and shall cover Club's indemnity obligations under Section 6.2.2 below. The Club shall deliver a copy of such policy with in ten (10) days of execution of this Sublease and each time said policy is renewed. 6.2 Indemnity. 6.2.1 EC Sevices' Indemnity.EC Services shall indemnify and hold the Club and the City harmless from and against any and all claims arising from EC Services' use of the Premises, or from the conduct of EC Services' business or from any activity, work or thing done, permitted or suffered by EC Services in or about the Premises and the Property. EC Services shall further indemnify and hold Club and the City harmless from andagainst any and all claims arising from any breach or default in the performance of any obligation of EC Services under this Sublease or arising from any negligence of the EC Services or any of EC Services' agents, contractors or employees and from and against all costs, attorney's fees, expenses and liabilities incurred in the defense of any such claim or any action or proceeding brought thereon. If any action or proceeding is brought against Club by reason of any such claim, EC Services, upon notice from Club, shall defend the same at EC Services' expense by counsel satisfactory to Club. EC Services, as a material part of the co sideration to Club, hereby assumes all risk of damage to property or injury to persons in, upon or about the Premises arising from any cause and EC Services hereby waives all claims in respect thereof against Club. The indemnification provisions contained herein shall survive the termination of this Sublease with respect to any claim or liability occurring prior to such termination. 6.2.2 Club's Indemnity. Club hereby indemnifies and agrees to hold EC Sublease -BOYS' AND GIRLS' CLUBS AND EC SERVICES NATIONAL CITY BRANCH 11 Attachment 3 Services harmless from, and to defend EC Services against any and all claims of liability for any injury or damage to any person or property occurring as a result of gross negligence or willful misconduct on the part of the Club, its agents, contractors or employees. The indemnification provisions contained herein shall survive the termination of this Sublease with respect to any claim or Iiability occurring prior to such termination. 6.3 Exemption of Club from Liability. EC Services hereby agrees that the Club and the City shall not be liable for injury to EC Services' business or for any loss of income therefrom or for damage to the goods, wares, merchandise or other property of EC Services, EC Services' employees, invitees, customers or any other person in or about the Premises and the Property. Further, the Club and the City shall not be liable for any injury to EC Services, EC Services' employees, agents or contractors whether such damage or injury is caused by or results from fire, steam, electricity, gas, water or rain or from breakage, leakage, obstruction or other defects of pipes, sprinklers, wires, appliances, plumbing, air conditioning or lighting fixtures, or from any other cause, whether the damage or injury results from conditions arising upon the Premises or upon other portions of the Property or from other sources or places and regardless of whether the cause of damage or injury or the means of repairing the same is inaccessible to EC Services. Club shall not be liable for any damages arising from any act or neglect of any other Subtenants of the Property. 7. Damage or Destruction. 7.1 Partial or Total Damage or Destruction of Premises. 7.1.1 Notwithstanding anything herein to the contrary, and subject to the cost requirements and City approval requirements under the Term of the Lease, in the event that the Premises or the Building are partially or totally damaged or destroyed, from any cause whatsoever, except through fault of EC Services, whether or not such damage or destruction is covered by the insurance required under Section 6, then Club may, at Club's sole option, either: 1) restore the Premises, Building, or improvements to the condition existing immediately prior to such damage or destruction and this Sublease shall remain in full force and effect; or 2) terminate this Sublease immediately; provided, however, that if the cost of restoration of the damage or destruction is Ten Thousand Dollars ($10,000.00) or less and insurance proceeds are available for such restoration, Club shall repair the Premises or Building to their condititn existing immediately prior to the damage or destruction. 7.1.2 Any damage caused through fault of the EC Services shall be repaired and restored to the condition existing immediately prior to such damage or destruction at the sole cost and expense of the EC Services; provided, however, in no event shall the obligation of EC Services with respect to such cost and expense exceed $500,000.00. EC Services agrees that Sublease -BOYS' AND GIRLS' CLUBS AND EC SERVICES NATIONAL CITY BRANCH 12 Attachment 3 preliminary steps toward performing repairs, restoration or replacement shall be commenced within thirty (30) days, and the required repairs, restoration, or replacement shall be completed within a reasonable time thereafter in a manner acceptable to Club, in Club's sole discretion. 7.2 Abatement of Rent. If the Premises are partially or totally damaged or destroyed, and if Club restores the Premises under the provisions of Section 7.1, monthly rent shall be abated proportionately with the degree to which EC Services' use of the Premises is impaired commencing from the date of damage or destruction and continuing during the period of such restoration until the restoration is completed so that EC Services may use the Premises for EC Services' usual business. 7.3 Waiver. EC Services waives the provisions of any statutes which relate to termination of leases when the thing leased is destroyed and agrees that such event shall be governed by the terms of this Sublease. 7.4 Waiver of Subrogation. The parties agree to have their respective property damage insurance carriers waive any right to subrogation that such companies may have against the Club or EC Services, as the case may be, so long a the insurance is not invalidated thereby. EC Services shall be responsible for and shall pay any increase in the Club's insurance premiums resulting from any loss or damage caused by EC Services, its officers, directors, employees, agents, guests, participants, invitees and the like, resulting from this waiver. EC Services shall pay said increase on an annual basis for a period of ten (10) years after such increase premium, if any, is charged to the Club. This obligation shall survive termination or expiration of this Sublease and any extension thereof. 8. Intentionally. Left Blank. 9. Licenses and Permits. It shall be the sole and full responsibility of EC Services, at its cost, to obtain all permits and licenses as are necessary to the use, operation, occupancy and/or maintenance of the Premises. The City has informed the Club that no Conditional Use Permit ("CUP") is required to operate the subject Head Start Program. However, should any CUP be required in the future to operate the EC Services' Head Start Program the cost of said CUP shall be paid for by the Club. The Club makes no representation or guarantee that a CUP can or will be Obtained if required in the future. However, in no event shall the Club be responsible for any damages to EC Services in connection with the failure or inability to obtain the CUP in the event one is required. 10. Hours of Operation. Subject to the written consent of the City, if required, EC Services shall conduct its operation of the Head Start Program on the Premises during the following hours: Monday through Friday, except holidays, 7:00 a.m. to 6:00 p.m. during the Sublease -BOYS' AND GIRLS' CLUBS AND EC SERVICES NATIONAL CITY BRANCH 13 Attachment 3 Head Start school year applicable to the Head Start Program operated at the Premises ("Operating Hours") and occasional evening or weekend use for Parent and/or Staff Meetings. Subject to the Lease and to any requirement by the City and/or the Club, EC Services may, in its reasonable discretion change the Operating Hours from time to time upon (i) two (2) weeks) written notice to the Club if such change is temporary or infrequent (e.g. special events, parent meetings, and other events not occurring regularly each month, or (ii) upon thirty (30) days written notice to Club if EC Services intends such change to be permanent or to last for more than one consecutive month. 11. Default. 11.1 EC Services's Default. The occurrence of any of the following shall constitute a default by EC Services: 11.1.1 Failure to pay rent or other sums when due. 11.1.2 Abandonment and vacation of the Premises (failure to occupy and operate the Premises for four (4) consecutive weeks, except for scheduled holidays or breaks shall be deemed an abandonment and vacation). 11.1.3 Failure to perform any other provision of this Sublease (a non - monetary default) if the failure to perform is not cured within thirty (30) days after notice has been given to EC Services. If the default cannot reasonably be cured within thirty (30) days, EC Services shall not be in default of this Sublease if EC Services commences to cure the default within the thirty (30) day period and diligently and in good faith continues to cure the default. Notices given under this Section 11.1.3 shall specify the alleged default and the applicable Sublease provisions, and shall demand that EC Services perform the provisions of this Sublease or pay the rent that is in arrears, as the case may be, within the applicable period of time, or quit the Premises. No such notice shall be deemed a forfeiture or a termination of this Sublease unless Club so elects in the notice. The purpose of the notice requirements set forth in this paragraph is to extend the notice requirements of the unlawful detainer statutes of California. Itlo notices shall be required to be given under Section 11.1.1 or 11.1.2. 11.1.4 Violation by EC Services of any provisions of covenants, conditions and restrictions ("CC&Rs") and/or any other recorded documents affecting the Premises. Sublease -BOYS' AND GIRLS' CLUBS AND EC SERVICES NATIONAL CITY BRANCH 14 Attachment 3 11.1.5 No interest of EC Services in this Sublease shall be assignable by operation of law. Each of the following acts shall be considered an involuntary assignment and a default hereunder: 11.1.5.1 If EC Services is or becomes bankrupt or insolvent or is unable to pay EC Services's debts as they become due, makes an assignment for the benefit of creditors, or institutes a proceeding under the Bankruptcy Act in which EC Services is the bankrupt; or, if EC Services is a partnership or consists of more than one person or entity, if any partner of the partnership or other person or entity is or becomes bankrupt or insolvent, or makes an assignment for the benefit of creditors; 11.1.5.2 If a writ of attachment or execution is levied on this Sublease; 11.1.5.3 If in any proceeding or action to which EC Services is a party, a receiver is appointed with authority to take possession of the Premises. An involuntary assignment shall constitute a default by EC Services and Club shall have the right to elect to terminate this Sublease, in which case this Sublease shall not be treated as an asset of EC Services. 12. Termination. This Sublease may be terminated as follows: 12.1 In the event that during the term of this Sublease, governmental funding is either eliminated or reduced to a point so as to render continued operation of the Head Start Program impractical or impossible, EC Services may terminate this Sublease upon ninety (90) days' written notice to the Club. 12.2 By Club, for EC Services's breach of any term, covenant or condition contained in this Sublease which is not cured within thirty (30) days immediately following written notice from the Club of such alleged breach. 12.3 By mutual agreement of the Parties hereto. 12.4 By Club in the event the Lease between the City and Club is terminated for any reason. 12.5 By the Club in the event EC Services fails to pay any monetary obligation under this Sublease within 30 days of the date due. Sublease -BOYS' AND GIRLS' CLUBS AND EC SERVICES NATIONAL CITY BRANCH 15 Attachment 3 12.6 By the Club in the event the Club finds it is practicably unable to continue operation of the Club at this Property and/or Premises. 12.7 Exception to Termination. Notwithstanding the above provisions regarding termination, this Sublease shall not be terminated by EC Services prior to June 30 in any year for which EC Services has received funding for its Head Start Program. 12.8 EC Services acknowledges and agrees that the Property is located on public parkland and therefore certain uses are not permitted. EC Services further acknowledges and agrees that this it shall not obtain any long term property interest in the Property or the Premises. EC Services further agrees that in the event there is any successful challenge to the use by EC Services, nothwithstanding any other provision of this Sublease, the City may cause EC Services to vacate the Premises and this Sublease shall be terminated. 12.9 Surrender: Termination. Upon termination of this Sublease, EC Services shall surrender the Premises to Landlord in the same condition as received, ordinary wear and tear excepted, clean and free of debris. EC Services shall repair any damage to the Premises occasioned by the installation or removal of its trade fixtures, furnishings and equipment. Unless Landlord requests the removal all alterations, improvements and additions shall become the property of the Club and remain upon and be surrendered with the Premises at the expiration of the Term. Provided, however, EC Services shall have the right to remove any improvements, alterations or restorations purchased or constructed by EC Services using federal or other grant funding (collectively, "EC Services -Retained Improvements"), unless Club elects no later than 10 days before the expiration of the Sublease term, at Club's sole discretion, to purchase any such EC Services Retained Improvements from EC Services for a price that shall not be less than the depreciated book value of the EC Services -Retained Improvements to be acquired by the Club. The sale of any EC Services -Retained Improvements to Club, and the price to be paid by Club, shall be subject to the approval, at the time of sale, of the federal agency or other grantor of the funds. In the absence of such an election by CIub and approval by the grantor of the funds, EC Services shall be entitled to remove the EC Services -Retained Improvements at the expiration or earlier termination of the Sublease and shall be responsible for restoration of the Premises to a condition, less reasonable wear and tear, prior to the occupation by EC Services. 12.10 In the event the Head Start Program is terminated hereunder, EC Services shall, subject to and upon the written consent of the parents or guardians of the children then enrolled in the program, provide to the Club a record of all students then participating in the program, which record shall include each student's name, the name of the student's parent(s) or guardian(s), address and telephone number. The purpose for providing said records shall be to allow the Club, in its sole discretion, to continue providing service similar in nature to the Head Sublease -BOYS' AND GIRLS' CLUBS AND EC SERVICES NATIONAL CITY BRANCH 16 Attachment 3 Start Program to said students. 12.11 Holding Over. Any holding over by EC Services after the expiration of the Term of this Sublease of any extension thereof, shall create a month -to -month tenancy, upon the same terms and conditions herein contained; provided, however, that so long as EC Services continues to pay all rent due under this Subleaseand comply with all other covenants, terms and conditions, Club shall not terminate such tenancy during the period from September 1 through June 30, except for such other termination rights expressly provided in this Sublease. 13. Late Charges. EC Services hereby acknowledges that late payment by EC Services to the Club of rent and other sums due under this Sublease will cause the Club to incur costs not contemplated by this Sublease, 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 on the Club by the terms of any mortgage or trust deed covering the Premises or charge by the City. Accordingly, if any installment of rent or any other sum due from EC Services is not received by the Club within ten (10) days after such amount is due then EC Services shall immediately pay to Club a late charge equal to six percent (6%) of the overdue amount. The parties agree that such late charge represents a fair and reasonable estimate of the costs the Club will incur by reason of late payment by EC Services. Acceptance of the late charge by the Club shall in no event constitute a waiver of EC Services's default with respect to such overdue amount, nor prevent the Club from exercising any of the other rights and remedies granted under this Sublease. If a late charge is payable hereunder, whether or not collected, for three (3) installments of rent, then rent shall automatically become due and payable quarterly in advance, rather than monthly, not withstanding any other provision of. this Sublease to the contrary. 14. Condemnation. 14.1 Definitions. "Condemnation" means: (a) the exercise of any governmental power, whether by legal proceedings or otherwise, by a condemnor; or (b) a voluntary sale or transfer by Club to any condemnor, either under threat of condemnation or while legal proceedings for condemnation are pending. "Date of Taking" means the date the condemnor has the right property being condemned. to possession of the "Award" means all compensation, sums, or anything of value awarded, paid or received on a total or partial condemnation. "Condemnor" means any public or quasi -public authority, or private corporation Sublease -BOYS' AND GIRLS' CLUBS AND EC SERVICES NATIONAL CITY BRANCH 17 Attachment 3 or individual, having the power of condemnation. If, during the Term or during the period of time between the execution of this Sublease and the date the Term commences, there is a taking of all or any part of the Premises, Building, other improvements or real property of which the Premises are a part or of any interest in this Sublease by condemnation, the rights and obligations of the parties shall be determined pursuant to this Section. 14.2 Total Taking. If all of the square footage in the Premises is taken by Condemnation, this Sublease shall terminate on the Date of Taking. 14.3 Partial Taking. If a portion of the square footage but Iess than all of the square footage of the Premises or of the Building or the real property of which the Premises are a part, is taken by condemnation, Landlord, within sixty (60) days after the Date of Taking, may terminate this Sublease as of a date specified in a written notice given to EC Services by Landlord within that sixty (60) day period. If Landlord does not give notice of termination to EC Services within that sixty (60) day period, then this Sublease shall continue in full force and effect; provided, however, that if a portion of the square footage but less than all of the square footage in the Premises is taken, monthly rent shall be reduced by an amount that is in the same ratio to monthly rent as the total square footage in the Premises taken bears to the total square footage in the Premises immediately before that Date of Taking. 14.4 Waiver of California Code of Civil Procedure Section 1265.130. EC Services waives the provisions of Code of Civil Procedure Section 1265.130 allowing a party to petition the superior court to terminate this Sublease in the event of a partial taking of the Premises. 14.5 Restoration of Premises. If there is a partial taking of the Premises and this Sublease remains in full force and effect EC Services at its cost shall accomplish all necessary restoration with no abatement of rent. 14.6 Award. The entire award shall belong to and be paid to Landlord except that EC Services shall receive from the award a sum attributable to EC Services's improvements or alterations made to the Premises by EC Services in accordance with this Sublease which EC Services has the right to remove from the Premises pursuant to the provisions of this Sublease but elects not to remove. 15. No Broker. EC Services represents that neither the Premises, nor any portion of the Building, was presented to it or to any person representing it by any broker or finder and that no broker or finder was involved in the leasing of the Premises. EC Services warrants that no claim for commission for the leasing shall be presented to Landlord. Further, EC Services agrees to Sublease -BOYS' AND GIRLS' CLUBS AND EC SERVICES NATIONAL CITY BRANCH 18 Attachment 3 indemnify and defend Landlord in the event of any such claims. 16. Assignment. 16.1 No Assignment. EC Services shall not voluntarily assign or encumber its interest in this Sublease or in the Premises, or sublease all or any part of the Premises, or allow any other person or entity to occupy or use all or any part of the Premises, without first obtaining Landlord's and the City's prior written consent which consent shall not be unreasonably withheld. Any assignment, encumbrance, or sublease without Landlord's prior written consent shall be voidable and, at Landlord's election,shall constitute a material default of this Sublease. No consent to any assignment, encumbrance, or sublease shall constitute a further waiver of the provisions of this Section. 16.2 If Consent is Given. If Landlord consents to a sublease or assignment of this Sublease, EC Services immediately and irrevocably assigns to Landlord, as security for EC Services's obligations under this Sublease, all rent from any subletting of all or any part of the Premises as permitted by this Sublease, and Landlord, as assignee and as attorney -in -fact for EC Services, may collect such rent and apply it towards EC Services's obligations under this Sublease; except that, until the occurrence of an act of default by EC Services, EC Services shall have the right to collect such rent. All rent received by EC Services from its sublease in excess of the rent payable by EC Services to Landlord under this Sublease shall be paid to Landlord, or any sums to be paid by an assignee to EC Services in consideration of the assignment of this Sublease shall be paid to Landlord if Landlord consents to a sublease or assignment. If EC Services requests Landlord to consent to a proposed assignment or subletting, EC Services shall pay to Landlord, whether or not consent is ultimately given, Landlord's reasonable attorney's fees incurred in connection with each such request. 16.3 Assignment by Operation of Law. No interest of EC Services in this Sublease shall be assignable by operation of law. Each of the following acts shall be considered an involuntary assignment: 16.3.1 If Subtenant is or becomes bankrupt or insolvent, makes an assignment for the benefit of creditors or institutes a proceeding under the Bankruptcy Act in which Subtenant is the bankrupt; or, if Subtenant is a partnership or consists of more than one person or entity, if any partner of the pa ership or other person or entity is or becomes bankrupt or insolvent, or makes an assignment for the benefit of creditors; 16.3.2 If a writ of attachment or execution is levied on this Sublease; 16.3.3 If, in any proceeding or action to which Subtenant is a party, a Sublease -BOYS' AND GIRLS' CLUBS AND EC SERVICES NATIONAL CITY BRANCH 19 Attachment 3 receiver is appointed with authority to take possession of the Premises. An involuntary assignment shall constitute a default by Subtenant and Landlord shall have the right to elect to terminate this Sublease, in which case this Sublease shall not be treated as an asset of EC Services. 17. Estoppel Certificate. Subtenant shall at any time and from time to time, upon not less than ten (10) days prior written notice from Landlord, execute, acknowledge, and deliver to Landlord a statement in writing certifying certain facts including, without limitation, that this Sublease is unmodified and in full force and effect (or, if modified, stating the nature of such modification and certifying that this Sublease, as so modified, is in full force and effect) and the dates to which the rental, the security deposit, and other charges, if any, are paid in advance, and acknowledging that there are not, to Subtenant's knowledge, any uncured defaults on the part of Landlord hereunder, and no events or conditions then in existence which, with the passage of time or notice or both, would constitute a default on the part of Landlord hereunder, or specifying such defaults, events, or conditions, if any are claimed. It is expressly understood and agreed that any prospective purchaser or encumbrancer of all or any portion of the Premises or the Building or of the real property of which they are a part shall be entitled to rely upon any such statement. Subtenant's failure to deliver such statement within such time shall, at the option of Landlord, constitute a breach or default under this Sublease. If such option is not so exercised by Landlord, Subtenant's failure shall be conclusive upon Subtenant that (I) this Sublease is in full force and effect without modification except as may be represented by Landlord; (ii) that there are no uncured defaults in Landlord's performance; and (iii) that not more than one (1) months' rental has been paid in advance. If Subtenant fails to deliver the certificate within ten (10) days of delivery of notice, Subtenant irrevocably constitutes and appoints Landlord as its special attorney -in -fact to execute and deliver the certificate to a third party. 18. Subordination. Subtenant agrees upon request of Landlord to subordinate this Sublease and its rights hereunder to the lien of any mortgage, deed of trust or other encumbrance, together with any conditions, renewals, extensions, or replacements thereof, now or hereafter placed, charged or enforced against the Landlord's interest in this Sublease and the leasehold estate thereby created, the Premises, the Building or improvements included therein or the real property of which the Premises are a part, and deliver at any time and from time to time upon dem d by Landlord any documents required to effectuate such subordination. In the event that Subtenant fails, neglects or refuses to execute and deliver any such document within ten (10) days after receipt of written notice to do so and the receipt by Subtenant of the document to be executed by it, Subtenant hereby appoints Landlord, its successors and assigns, the special attorney -in -fact of Subtenant irrevocably to execute and deliver any and all such documents for and on behalf of Subtenant; provided, however, that Subtenant shall not be required to effectuate such subordination, nor shall Landlord be authorized to effect such subordination on behalf of Sublease -BOYS' AND GIRLS' CLUBS AND EC SERVICES NATIONAL CITY BRANCH 20 Attachment 3 Subtenant, unless the mortgagee or beneficiary named in such mortgage, deed of trust or other encumbrance shall first agree in writing, for the benefit of Subtenant, that so long as Subtenant is not in default under any of the provisions, covenants or conditions of this Sublease on the part of Subtenant to be kept and performed, that Subtenant's quiet enjoyment of the Premises will not be disturbed or interfered with by any trustee's sale or by any action or proceeding to foreclose said mortgage, deed of trust or other encumbrance. In the event that the mortgagee or beneficiary of any such mortgage or deed of trust elects to have this Sublease a prior lien to its mortgage or deed of trust, then and in such event upon such mortgagee or beneficiary giving written notice to Subtenant to that effect, this Sublease shall be deemed a prior lien to such mortgage or deed of trust whether this Sublease- is dated or recorded prior to or subsequent to the date of recordation of such mortgage or deed of trust. 19. City's Liability. The City shall mean only the owner or owners, at the time in question, of the fee interest in the Premises. In the event of any transfer of such fee interest, City shall be relieved from and after the date of such transfer of all liability under this Sublease provided that any funds in the hands of City at the time of such transfer, in which Subtenant has an interest, shall be delivered to the grantee. The obligations in this Sublease to be performed by City, if any shall be binding on City's successors and assigns only during their respective periods of ownership. 20. Interest on Past Due Obligations. Except as expressly herein provided, any amount due to a party and not paid when due shall bear interest at 10% from the date due until paid. 21. Notices. Any notice, demand, request, consent, approval or communication that either party desires or is required to give to the other or any other person shall be in writing and either served personally or sent by prepaid certified mail, first class, and shall be addressed to the other party at the address set forth under its name on the signature page of this Sublease. Either party may change its address by notifying the other party of the change of address in accordance with this Section. Notice shall be deemed effective upon receipt if personally delivered or seventy- two (72) hours from the date of mailing if mailed as provided in this Section. 22. Sr n Subtenant shall not place any sign upon the Premises, the Building or any improvemen s or the real property of which the Premises are a part without the Club's and the City's prior written consent. 23. Recording/Quitclaim Deed. This Sublease shall not be recorded without City's and Landlord's prior written consent. Subtenant shall execute and deliver to Landlord on the expiration or termination of this Sublease, immediately on Landlord's request, a quitclaim deed Sublease -BOYS' AND GIRLS' CLUBS AND EC SERVICES NATIONAL CITY BRANCH 21 Attachment 3 to the Premises, in recordable form, designating Landlord as transferee. 24. Intentionally left blank. 25. Landlord's Right of Entry. Landlord, Landlord's agents and City shall have the right to enter the Premises at reasonable times for the purpose of inspecting the same, showing the Premises to prospective purchasers, lenders or Subtenants and making such alterations, repairs, improvements, or additions to the Premises or the Building as Landlord may deem necessary or desirable. City may at any time place on or about the Premises any ordinary "for sale" signs and Landlord may at any time during the last one hundred and eighty (180) days of the Term of the Sublease place on or about the Premises "For Lease" signs. 26. Attorney's Fees. If either party brings an action to enforce the terms of this Sublease or declare rights hereunder, the prevailing party in such action, arbitration or trial or appeal, shall be entitled to its reasonable attorney's fees and costs to be paid by the losing party as fixed by the court. 27. Security Measures. Subtenant hereby acknowledges that the rent payable to Landlord hereunder does not include the cost of guard service or other security measures and that Landlord shall have no obligation whatsoever to provide the same. Subtenant assumes all responsibility for the protection of Subtenant, its agents and invitees from acts of third parties. 28. Landlord's Right to Effect Performance. If Subtenant at any time fails to perform any covenant, term or condition of this Sublease, Landlord may after providing EC Services the notice and period for cure specified in Section 11.1.3, perform the same for the account of Subtenant, and any monies paid by Landlord on account thereof shall be deemed to be additional rent due under this Sublease, shall be immediately due and payable to Landlord and shall bear interest at the maximum rate allowable by law until paid by Subtenant to Landlord. 29. Intentionally Ieft blank. 30. Miscellaneous. 30.1 Time of Essence. Time is of the essence to this Sublease. 30.2 Amendments. This Sublease contains all agreements of the parties with respect to any matter mentioned herein. No prior agreement or understanding pertaining to any such matter shall be effective. This Sublease may be modified only in a writing signed by all parties hereto. Sublease -BOYS' AND GIRLS' CLUBS AND EC SERVICES NATIONAL CITY BRANCH 22 Attachment 3 30.3 Severability. The invalidity of any provision of this Sublease as determined by a court of competent jurisdiction, shall in no way affect the validity of any other provision hereof and it shall remain in full force and effect. 30.4 Waiver. No delay or omission in the exercise of any right or remedy of Landlord on any default by Subtenant shall impair such right or remedy or be construed as a waiver. No act or conduct of Landlord, including, without limitation, the acceptance of the keys to the Premises, shall constitute an acceptance of the surrender of the Premises by Subtenant before the expiration of the Term. Only a written notice from Landlord to Subtenant shall constitute an acceptance of the surrender of the Premises and accomplish a termination of the Sublease. Landlord's consent to or approval of any act by Subtenant requiring Landlord's consent or approval shall not be deemed to waive or render unnecessary Landlord's consent to or approval of any subsequent act by Subtenant. Any waiver by Landlord of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Sublease. 30.5 Cumulative Remedies. No remedy or election hereunder shall be deemed exclusive but shall, wherever possible, be cumulative with all other remedies at law or in equity. 30.6 Covenants and Conditions. Each provision of this Sublease to be performed by Subtenant shall be deemed both a covenant and a condition. 30.7 Governing Law. This Sublease shall be governed by the laws of the State of California. 30.8 Heirs, Successors and Assigns. Subject to the provisions restricting assignment or subletting by EC Services, or other provisions of this Sublease, this Sublease shall be binding on the parties, their respective heirs, personal representatives, successors and assigns. 30.9 Authority. Each individual executing this Sublease on behalf of such entity represents and warrants that he or she is duly authorized to execute and deliver this Sublease on behalf of that entity. Each party shall provide the other party with evidence of such authority satisfactory to Landlord. 30.10 Written Notice or Consent of Parties. Whenever a notice, consent or approval of either party is required, the notice, consent or approval shall be in writing. Sublease -BOYS' AND GIRLS' CLUBS AND EC SERVICES NATIONAL CITY BRANCH 23 Attachment 3 30.11 Captions. The captions of this Sublease shall have no effect on its interpretation. 30.12 Construction. As used in this Sublease, the masculine, feminine or neuter gender and the singular or plural numbers shall each be deemed to include the other whenever the context so indicates. This Sublease shall be construed in accordance with its fair meaning, the captions being for the convenience of the parties only and not intended to describe or define the provisions in the portions of the Sublease to which they pertain. The terms of this Sublease have been freely negotiated by the parties and this Sublease shall not be construed against the drafter. 30.13 Mediation, Arbitration and Attorney's Fees. 30.13.1 Mediation of Disputes. Except as otherwise provided herein, the parties agree to mediate any dispute or claim arising between them out of this Agreement, or any resulting transaction, before resorting to arbitration. Mediation fees, if any, shall be divided equally among the parties involved. If, for any dispute or claim to which this paragraph applies, any party commences arbitration without first attempting to resolve the matter through mediation, or refuses to mediate after a request has been made, then that party shall not be entitled to recover attorney's fees, even if they would otherwise be available to that party in any such arbitration. 30.13.2 Arbitration of Disputes. Except as otherwise provided herein, any action to enforce or interpret this instrument or to resolve disputes between the parties regarding this instrument, shall be settled by binding arbitration in accordance with California law. Any party may commence arbitration by sending a written demand for arbitration to the other parties. Such demand shall set forth the nature of the matter to be resolved by arbitration. Arbitration shall be conducted at San Diego, California. The substantive Iaw of the State of California shall be applied by the arbitrator to the resolution of the dispute. The parties shall share equally all initial costs of arbitration. The prevailing party shall be entitled to reimbursement of attorney fees, costs, and expenses incurred in connection with the arbitration. All decisions of the arbitrator shall be final, binding, and conclusive on all parties. Judgment may be entered upon any such decision in accordance with applicable law in any court having jurisdiction thereof. Sublease -BOYS' AND GIRLS' CLUBS AND EC SERVICES NATIONAL CITY BRANCH 24 Attachment 3 30.13.3 Exclusions from Mediation and Arbitration. The following matters are excluded from mediation and arbitration: (I) a judicial or non judicial foreclosure or other action or proceeding to enforce a deed of trust, mortgage or installment land sale contract as defined in California Civil Code §2985; (2) an unlawful detainer action; (3) the filing or enforcement of a mechanic's lien; and (4) any matter that is within the jurisdiction of a probate, small claims or bankruptcy court. The filing of a court action to enable the recording of a notice of pending action, for order of attachment, receivership, injunction, or other provisional remedies, shall not constitute a waiver of the mediation and arbitration provisions. Any party may commence arbitration by sending a written demand for arbitration to the other parties. Such demand shall set forth the nature of the matter to be resolved by arbitration. Arbitration shall be conducted at San Diego, California. The parties shall share equally all initial costs of arbitration. The prevailing party shall be entitled to reimbursement of attorney fees, costs, and expenses incurred in connection with the arbitration. All decisions of the arbitrator shall be fmal, binding, and conclusive on all parties. "NOTICE: BY INITIALING IN THE SPACE BELOW YOU ARE AGREEING TO HAVE ANY DISPUTE ARISING OUT OF THE MAFIERS INCLUDED IN THE `ARBITRATION OF DISPUTES' PROVISION DECIDED BY NEUTRAL ARBITRATION AS PROVIDED BY CALIFORNIA LAW AND YOU ARE GIVING UP ANY RIGHTS YOU MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED IN A COURT OR JURY TRIAL. BY INITIALING IN THE SPACE BELOW YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO DISCOVERY AND APPEAL, UNLESS THOSE RIGHTS ARE SPECIFICALLY INCLUDED IN THE `ARBITRATION OF DISPUTES' PROVISION. IF YOU REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS PROVISION, YOU MAY BE COMPELLED TO ARBITRATE UNDER THE AUTHORITY OF THE CALIFORNIA CODE OF CIVIL PROCEDURE. YOUR AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARY." WE HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES ARISING OUT OF THE MAFfhRS INCLUDED IN THE `ARBITRATION OF DISPUTES' PROVISION TO NEUTRBITRATION. INITIALS: <� 30.14 Incorporation of Recitals. Recital provisions set firth above are an integral part of this Agreement and are by this reference incorporated herein as though set forth in full. Sublease -BOYS' AND GIRLS' CLUBS AND EC SERVICES NATIONAL CITY BRANCH 25 Attachment 3 30.15 Counterparts. This Sublease may be executed in one or more counterparts, each of which shall be considered an original of this Agreement. LANDLORD: , Y s •:. S CLUB OF GREATER SAN DIEGO By: Danny riock, CEO Addre s: P.O. Box 178569 San Diego, CA 92177 Tel. #: 858-866-0591 Facsimile: 858-866-0595 E-mail: dsherlock@sdyouth.org Subtenant: EC Services By: Christop er J. Marics, Chief *nistrative Officer Address: 40 Mile of Cars Way, Suite 350 National City, CA 91950 Tel. #: 619-228-2800 Facsimile: 619-228-2801 E-mail: cmarics@ecscalifornia.org APPROVED AS TO FORM AND CONTENT CITY OF NATIONAL CITY By: (print name and title) \hvbsbs\client files 1.BBVeal estate 'Boys' and Girls Club\Episcopal Community Services1Subleas -revised 7-14-14.wpd Sublease -BOYS' AND GIRLS' CLUBS AND EC SERVICES NATIONAL CITY BRANCH 26 Attachment 3 Sublease -BOYS' AND GIRLS' CLUBS AND EC SERVICES NATIONAL CITY BRANCH EXHIBIT "A" Legal Description ofthe Property 27 Attachment 3 RECEIVED IN POOR CONDITIOI1d EXHIBIT "A" That portion of Blocks 3 and 4 per Map No. 552, Records of San Diego County, California, November 4, 1914, together with closed and vacated to public use portions of 14th Street, 15th Street and C Avenue, described as follows: COMMENCING at the Southeast corner of said Block 4; Thence along the Southerly prolongation of the Easterly line of said Block 4, South 17°47'04" East, 4.24 feet to the POINT OF BEGINNING; 1. Thence leaving said line, South 71° 56' 15" West, 249.51 feet; 2. Thence South 28° 47' 57" West, 16.17 feet; 3. Thence North 79° 32' 30" West, 9.76 feet; 4. Thence North 88° 10' 29" West, 10.10 feet; 5. Thence South 81 ° 39' 55" West, 10.18 feet; 6. Thence South 68° 32' 00" West, 48.87 feet; 7. Thence North 71 ° 20' 52" West, 29.69 feet; 8, Thence North 67° 43' 17" West, 19.80 feet; 9. Thence North 61 ° 15' 54" West, 39.52 feet; 10. Thence North 30° 13' 16" West, 15.13 feet; 11. Thence North 23° 22' 20" East, 37.88 feet; 12. Thence North 37° 26' 19" East, 69.13 feet; 13. Thence North 43° 43' 42" East, 79.18 feet; 14. Thence North 51 ° 18' 19" East, 19.29 feet; 15. Thence North 60° 34' 10" East, 128.19 feet; 16. Thence North 16° 40' 03" West, 41.65 feet; 17. Thence North 34° 52' 24" East, 27.92 feet; 18. Thence North 71 ° 34' 26" East, 89.80 feet to the Northerly prolongation of Easte y the of-saidBlock 4; 19, Thence along said line, South 17° 47' 04" East, 266.11 feet to the POINT OF BEGINNING. Said land contains 75, 760 S.F., rnore or less. This legal description has been prepared by me, or under my direction, in conformance with the Professional and urveyors Act. Signature: Jo n R. Berggren, L.S. 6000 r:•,'•'" ` ` %r�, Lic-nse Expires 12/31/2010 (-4 Date: January 4, 2009 ,``}}• fjJl� • <w- t Gn re%r 0 Attachment 3 LINE TABLE LINE BEARING DISTANCE LINE BEARING DISTANCE 11 S71'56'15"W 249.51' L11 S23'22'20"W 37.88' L2 S28'47'57"W 16.17' L12 137'26'19"E 69.13' L3 S79'32'30"E 9.76' L13 N43'43'42"E 79.18' L4 S88'10'29"E 10.10' L14 N51'18'19'E 19,28' L5 N81'39'55"E 10.18' L15 S60'34'10"W 128,19' L6 N68'32'00"E 48.87' L16 S16'40'03"E 41.65' L7 S71'20'52"E 29.69' L17 S34'52'24"W 27.92' L8 N67'43'17"W 19.80' L18 571'34'26"W 89.80' L9 N61`151540W 39.52' L19 S17'47'04"E 266,11' L10 S30'13'16"E 15.13' \a t111.0 MAP 55 ' BLOCK 3 L10 f.- '9 L8-"-Z 5 L2 L3 L1� SOUTHEAST CORNER OF BLOCK 4 4.242_,' / flr POINT OF BEGINNING NEW LEASE AREA = 75,670 SF Exhibit B SCALE 1"= 100' IN ASSOCIATION WITH: TETRA TECH BERGGREN & ASSOCIATES LAND SURVEYING AND RIGHT Of WAY MAPPING 6046 CORNERSTONE COURT WEST 11116 SAN DIEGO, CALIFORNIA 92121 (858) 824-0034 / (858) 824-0036 RECEIVED IN POOR COMMON Attachment 3 EXHIBIT "B" (Copy of the Club's Lease with the City of National City) Sublease -BOYS' AND GIRLS' CLUBS AND EC SERVICES NATIONAL CITY BRANCH 28 Atra_t meat 3 PLEASE COMPLETE THIS INFORMATION RECORDING REQUESTED BY: CITY CLERK OF NATIONAL CITY 1243 National City Blvd National City, CA 91950 AND WHEN RECORDED MAIL TO: CITY CLERK OF NATIONAL CITY 1243 National City Blvd National City, CA 91950 cbot, 1" Mr o ccs z0r ii ii 11 [II ii i '11'I!III Og70285 SEP 12, 2011 1:33 PM OFFICIAL RECORDS SAN DIEGO COUNTY RECORDER'S OFFICE Erne$R J. Dronenburg. Jr., COUNTY RECORDER FEES: 0.00 PAGES: 60 If IIIC�IIIU ll 011 'CRI 01111 10. 1N110 fl1ul 1 11I G0If10111 MS SPACE FOR RECORDER'S USE ONLY 20-YEAR LEASE AGREEMENT: WITH THE BOYS' AND GIRLS' CLUB OF GREATER SAN DIEGO, INC., FOR THE CITY -OWNED LAND AND BUILDING LOCATED AT 1430 D AVENUE (Please fill in document title(s) on this line) THIS PAGE ADDED TO PROVIDE ADEQUATE SPACE FOR RECORDING INFORMATION 1110011 F81 Attachmont 8 LEASE BY AND BETWEEN THE CITY OF NATIONAL CITY AND THE BOYS & GIRLS CLUBS OF GREATER SAN DIEGO, INC. This Lease is made and entered into this 16th day of August, 2011, (the "Commencement Date"), by and between the City of National City, a municipal corporation, hereinafter designated as "Lessor", and the Boys & Girls Clubs of Greater San Diego, Inc., hereinafter designated as "Lessee." RECITALS A. Lessee is desirous of leasing from Lessor certain real property, including a building and other improvements, for the purpose of maintaining a clubhouse thereon, and for promoting the physical, mental, and moral well-being of the boys and girls of the City of National City, and for boys and girls in the immediate vicinity thereof. B. Lessee has constructed and maintained the building and improvements on the Premises for many years with private funds raised from the community by the Boys' and Girls' Clubs. Said building and improvements, together with all appliances, fixtures, equipment and furniture (excluding the tables and chairs kept inside the building) were conveyed and transferred to Lessor on or about December 17, 2008. C. The use of said property for the purpose aforementioned will promote the general welfare of all the inhabitants of the City of National City. NOW, THEREFORE, the parties hereto agree as follows: 1. Leased Premises. Lessor does hereby lease, demise and let to Lessee the real property, building, and other improvements situated in the City of National City, County of San Diego, State of California, commonly known as 1430 "D" Avenue, as more specifically described in the attached Exhibit "A", and shown on the attached Exhibit "B", which are incorporated herein by reference (the "Leased Premises"). Lessee has constructed and maintained the building and improvements on the Premises for many years with private funds raised from the community by the Boys' and Girls' Clubs. Said building and improvements, together with all appliances, fixtures, equipment and furniture (excluding the tables and chairs kept December 17, 2008.inside the building) were conveyed and transferred to Lessor on or about 2. Term. The Term of the Lease shall be for a period of twenty (20) years from the date first written above. 3. Use. The above described premises are leased to Lessee by Lessor for the purpose of maintaining a Boys and Girls Club, and to be used exclusively and for no other purpose than to maintain said Boys & Girls Club, and to promote the physical, mental, and moral well-being of the boys and girls of the City of National City and territory adjacent thereto, and to provide such means of 1 2011 1 P.nW Between City of National City and Boys and Girls Clubs of Greater San Diego Attaohmont 3 education, wholesome recreation, and proper guidance as may seem most likely and desirable for the accomplishment of the purposes herein set forth. 4. Legal Status of Lease. Lessee warrants that it is a California nonprofit corporation. 5. Rent. Lessor and Lessee acknowledge that the consideration for this Lease and any option period shall be the annual sum of One Dollar ($1.00) and the mutual benefit to be derived from Lessee's uses of the Leased Premises, as specified herein. 6. Assignment and Subletting. This Lease shall not be assigned, sublet, hypothecated, leveraged, or transferred without the prior written consent of Lessor. 7. Repairs by Lessor. Lessor shall be required to make such repairs or replacements to the Leased Premises as may be required for normal maintenance and operation, which shall include the repairs and/or replacements to all structural portions of the building located on the Leased Premises, and all walls, floors, corridors, windows, HVAC, mechanical electrical, plumbing, paving and parking, exterior windows, and other structures and equipment within and serving the Leased Premises, and such additional maintenance as may be necessary because of damages by persons other than Lessee, its agents, employees, invitees, or visitors, all in accordance with standard practices for similar commercial buildings in the San Diego, California area. Lessor shall be responsible for extermination/pest control for the Leased Premises. Without limiting the foregoing, notwithstanding anything to the contrary set forth herein, if Lessor is required to make repairs to take other corrective action in the Leased Premises by reason of Lessee's negligent acts or negligent failure to act reasonably, Lessor shall have the right to recover from Lessee the reasonable cost of the repairs or other work. 8. Repairs by Lessee. Lessee agrees to repair or replace any damage or injury done to the Leased Premises, or any part thereof, caused by Lessee or Lessee's agents, employees, invitees, or visitors, at Lessee's own cost and expense within a reasonable time after written notice from Lessor. If Lessee fails to make such repairs or replacements within a reasonable time after written notice, Lessor may, at its option, make such repairs or replacements, and Lessee shall repay the cost thereof to the Lessor as additional rent within ten (10) days of written demand. However, for any repair work, other than repair work in emergency situations, costing over Five Thousand and no/100 Dollars ($5,000.00) to be performed by Lessee or Lessee's agents, Lessee shall not perform such repair work without the prior written consent of Lessor's City Manager or designee. Any repairs or replacements in or to the Leased Premises, other than repair work in emergency situations, which would require an expenditure exceeding Five Thousand and no/100 Dollars ($5,000.00) and which constitute a "public project" under Section 20161 of the California Public Contract Code, shall be contracted for/by Lessor and let to the lowest responsible bidder after notice. 2 2011 Lease Between City of National City and Boys and Girls Clubs of Greater San Diego 9. Routine Maintenance by Lessee. From and after the Commencement Date and during the Term, Lessee shall, at its own cost and expense, make all repairs and replacements required by this Lease, reasonable wear and use excepted, and excepting those repairs to be made by Lessor as set forth in Section 7 above. 10. Waste. Lessee shall not commit waste (property abuse, destruction, or damage) beyond normal wear and tear of the Leased Premises. 11. Improvements, Alterations, and Additions. Lessee shall not make or allow to be made any major alterations or physical additions in or to the Leased Premises which affect the structure or any other improvements and costing more than Five Thousand and no/100 Dollars ($5,000.00) without first obtaining the prior written consent of Lessor's City Manager or designee, which consent shall not be unreasonably withheld. All work shall be done by contractors approved by Lessor. Any alterations or physical additions in or to the Leased Premise that would require an expenditure exceeding Five Thousand and no/100 Dollars ($5,000.00), and which constitute a "public project" under Section 20161 of the California Public Contract Code, shall be contracted for/by Lessor and let to the lowest responsible bidder after notice. Any and all such alterations, physical additions, or improvements, when made to the Leased Premises by Lessee, shall at once become the property of Lessor and shall be surrendered to Lessor upon the termination of this Lease by lapse of time or otherwise; provided, however, this clause shall not apply to trade fixtures, equipment, or furniture owned by Lessee. Any Lessee improvements, alterations or additions shall comply with all government, local building code, permitting, and competitive bidding requirements. Lessee shall give Lessor written notice five (5) days prior to employing any laborer or contractor to perform major work on the Leased Premises so that Lessor may post a notice of non -responsibility, if allowed by law. Lessee shall not be required to remove alterations, physical additions, or improvements upon termination of this Lease 12. Utilities. Lessee will be responsible for payment of utilities, including but not limited to electric, gas, telephone, security, fire alarm, sewer, trash, and water. Lessee understands that it is responsible for the proper disposal of debris in the designated trash receptacles provided by the Lessor. No trash is to be plced in front of or on the sides of the container nor should any trash be placed ori top of the lids. Lessee further understands that it will be billed accordingly for not disposing of trash in the proper manner, which includes breaking down all boxes and containers prior to being placed in the trash bins. 13. Indemnity and Insurance. a. Disclaimer of Liability, Lessor shall not at any time be liable for injury or damage occurring to any person or property from any cause whatsoever arising out of Lessee's construction, maintenance, repair, use, operation, or dismantling of the Leased Premises except to the extent caused by Lessor's negligence or willful misconduct. 3 201 I Lease Between City of National City and Boys and Girls Clubs of Greater San Diego ntta hm nt 3 b. Indemnification. Lessee shall, at its sole cost and expense, defend, indemnify, and hold harmless Lessor and its officials, boards, commissions, employees, agents, attorneys, and contractors (hereinafter referred to as "indemnitees" ), from and against: i. Any and all liability, obligation, damages, penalties, claims, liens, costs, charges, losses and expenses, including without limitation, reasonable fees and expenses of attorneys, expert witnesses and consultants, which may arise out of or be in any way connected with Lessee's construction, maintenance, repair, use, operation, or dismantling of the Leased Premises or Lessee's failure to comply with any federal, state, or local statute, ordinance or regulation. ii. Lessee's obligations to indemnify indemnitees under this Lease shall not extend to claims, losses, and other matters covered hereunder to the extent such claims arise out of the negligence or willful misconduct of one or more indemnitees. c. Assumption ofRisk. Lessor warrants that it does not have knowledge that a dangerous condition exists at the Premises except as may be specifically set forth in this Lease. Lessee undertakes and assumes for its officers, agents, affiliates, contractors and subcontractors, and employees (collectively for the purpose of this section), all risks of unknown dangerous conditions, if any, on or about the Leased Premises, and Lessee hereby agrees to indemnify and hold harmless Lessor against and from any claim asserted or liability imposed upon the Indemnitiees for personal injury or property damage to any person (other than from Indemnitee's negligence or willful misconduct) arising out of Lessee's construction, maintenance, repair, use, operation or dismantling of the Leased Premises or Lessee's failure to comply with any federal, state, or local statute, ordinance or regulation. d. Defense of Lessor. In the event any action or proceeding shall be brought against Lessor by reason of any matter for which Lessor is indemnified hereunder, Lessee shall, upon notice from Lessor at Lessee's sole cost and expense, resist and defend the same with legal counsel mutually selected by Lessor and Lessee, provided however, that Lessee shall not admit liability in any such matter on behalf of Lessor without prior written consent of Lessor's City Manager or designee, which consent shall not be unreasonably withheld, and provided further that Lessee shall not admit liability for, nor enter into any compromise or settlement of, any claim for which it is indemnified hereunder, without the prior written consent of Lessor, which consent shall not be unreasonably withheld. e. Notice, Cooperation and Expenses. Lessee shall give Lessor prompt notice of the making of any claim or the commencement of any action, suit, or other proceeding covered by the provisions of this paragraph. Nothing herein shall be deemed to prevent Lessor from cooperating with 4 2011 Lease Between City of National City and Boys and Girls Clubs ofGrerler Sun Diego Attachmcnt 3 Lessee and participating in the defense of any litigation by Lessor's own counsel. f. Insurance. During the term of the Lease, Lessee shall maintain, or cause to be maintained, in full force and effect and at its sole cost and expense, the following types and limits of insurance: i. Worker's compensation insurance meeting applicable statutory requirements. ii. Commercial general liability insurance with minimum limits of Two Million and no/100 Dollars ($2,000,000.00) as the combined single Iimit for each occurrence of bodily injury, personal injury, and property damage. iii. At the start of and during the period of any construction by Lessee, builders all-risk insurance, together with an installation floater or equivalent property coverage covering cables, materials, machinery, and supplies of any nature whatsoever which are to be used in or incidental to the installation of improvements. iv. All policies other than for Worker's Compensation shall be written on an occurrence and not on claims made basis. v. The coverage amounts set forth above may be met by a combination of underlying and umbrella policies so long as in combination the limits equal or exceed those stated, vi. Lessee shall furnish certificates of insurance to Lessor before commencement of the Lease term. g. Named Insureds. All policies, except for worker's compensation policies, shall name Lessor and its officials, boards, commissions, employees, agents, and contractors, as their respective interests may appear, as additional insureds (herein referred to as the "Additional Insureds"), and a separate additional insured endorsement shall be provided. h. Evidence of Insurance. Certificates of Insurance of each insurance policy required to be obtained by Lessee in compliance with this paragraph, along with written evidence of payment of required premiums shall be filled and maintained with Lessor annually during the term of the Lease. Lessee shall immediately advise Lessor of any claim or litigation that may result in liability to Lessor. i, Cancellation of Policies of Insurance. All insurance policies maintained pursuant to this Lease shall contain the following endorsement: 5 201 I Lease Between City of National City and Boys and Girls Clubs of Greater San Diego nfmrt,r r t At least thirty (30) days ' prior written notice shall be given to Lessor by the insurer of any intention not to renew such policy or to cancel, replace, or materially alter same. Insurance Companies. All insurance shall be affected under valid and enforceable policies, insured by insurers licensed to do business by the State of California or surplus carriers on the State of California Insurance Commissioner's approval list of companies qualified to do business in the State of California. All insurance carriers and surplus line carriers shall be rated A+ or better by A.M. Best Company, or as otherwise approved by Lessor's Risk Manager. k. Deductibles. All insurance policies may be written with deductibles not to exceed $50,000 unless approved in advance by Lessor's Risk Manager. Lessee agrees to indemnify and save harmless Lessor, the indemnitees, and Additional Insureds from and against the payment deductible and from the payment of any premium on any insurance policy required to be famished by the Lease. Contractors. Lessee shall require that each and every one of its contractors and their subcontractors who perform work on the Leased Premises on behalf of Lessee to carry in full force and effect, workers' compensation, comprehensive commercial general liability, and automobile liability insurance coverages of the type which Lessee is required to obtain under the terms of this paragraph with appropriate limits of insurance. m. Responsibility after Termination. Upon termination of the Lease, each party shall remain responsible to the other for any and all liabilities, obligations, damages, penalties, claims, liens, costs, charges, fosses, and expenses arising under the Lease which arose out of the Lease and occurred prior to such date of termination. n. Review of Limits. Once during each calendar year during the term of the Lease, Lessor may review the insurance coverages to be carried by Lessee. If Lessor deteiiuines that higher limits of coverage are necessary to protect the interests of Lessor or the Additional Insureds, Lessee shall be so notified, and shall obtain the additional limits of insurance, at its sole cost and expense. 14. Inspection. Lessor, by and through its proper officers, reserves and shall always have the right, upon reasonable notice and at a reasonable time, to enter the Leased Premises for the purpose of viewing and ascertaining the conditions of the same and the operation and maintenance thereof. 6 201 I Lease Between City of National City and Boys and Girls Clubs of Greater San Diego Attachment 3 15. Removal of Personal Prqperty. At the termination or expiration of this Lease or any renewal thereof, Lessee shall, within ninety (90) days of written request by Lessor, remove any and all personal property not owned by Lessor, placed or erected on the premises during the term thereof, or any renewal thereof, and that all expense connected with such removal shall be borne by Lessee. Lessor shall have the right to sell, destroy, remove, or otherwise dispose of any such personal property Left on the premises longer than ninety (90) days after te,tliination of this Agreement. The premises shall be left by Lessee in a clean, neat, and safe condition, and the exclusive possession and use of the property shall revert to Lessor. 16. Non -Discrimination, Lessee agrees that there shall be no discrimination against or segregation of any person or group of persons because of race, color, creed, national origin, sex, sexual orientation, ancestry, marital status, physical handicap, or medical condition in the use occupancy or enjoyment of the property, nor shall Lessee, or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy of users of the property. 17. Waiver. The failure or omission of Lessor to terminate this Lease for any violations of any of its terms, conditions, or covenants shall in no way be deemed to be a consent by Lessor to such violation, and shall in no way bar, stop, or prevent Lessor from terminating this Lease thereafter, either for such or for any subsequent violation of any such term, condition, or covenant. 18. Signs. Lessee agrees that no sign, advertisement, or notices shall be inscribed, painted or affixed on or to any part or portion of the outside of the Leased Premises except to be of such type and color, size and style, and in such place as may be approved by Lessor. Any additional signage or changes to existing signage after the Commencement Date will require Lessee to pay for and obtain all regulatory approvals (permits) for the Leased Premises. 19. Waiver of Relocation Assistance. In consideration for the execution of this Lease by Lessor, Lessee hereby waives any claim for relocation assistance benefits to which it ay otherwise be entitled under federal, state, or local law or regulations, upon vac Lion of the Leased Premises. 20. Americans with Disabilities Act. Upon commencement of this Lease, Lessee shall comply, at its sole cost, with requirements of ADA which provides for the removal of architectural barriers that prevent equal access to disabled persons on the interior of the Leased Premises. Through the duration of the Lease, Lessor shall comply, at its sole cost, with requirements of the ADA which provides for the removal of architectural barriers that prevent equal access to disabled persons on the exterior of the Leased Premises. Lessor warrants that the Premises will be ADA compliant at the time possession is delivered to Lessee. 7 2011 Lease Between City of National City and Boys and Girls Clubs of Greater San Diego nttachmont 3 21. Compliance with Environmental and Other Laws. Lessee shall not engage in activities upon the Leased Premises, or any portion thereof, for the purpose of or anyway involving the handling, manufacturing, treatment, storage, use, transportation, spillage, leakage, dumping, discharge or disposal (whether legal or illegal, accidental or intentional), or any hazardous or toxic substances, materials or wastes, or any wastes regulated under any local, state, or federal law; provided, however, normal quantities and use of those hazardous or toxic substances or materials customarily used in the conduct of Lessee's permitted uses, such as paints, stains, solvents, and similar materials, may be used and stored by Lessee at the Leased Premises. Lessee shall be, and remain for the terra of this Lease, in full compliance with all applicable laws governing the use and occupancy of the Leased Premises including, without limitation, the handling, manufacturing, treatment, storage, disposal, discharge, use, and transportation of hazardous or toxic substances, materials or wastes, and any wastes regulated under any local, state, or federal law. Lessee has been advised that no digging or excavation at the site will be authorized without appropriate environmental oversight. 22. Obstruction. Except as permitted by this Lease, and except for those materials customarily used in the conduct of Lessee's permitted uses, Lessee shall not place, install, maintain, or allow any combustible materials in buildings, structures, or other improvements upon the Leased Premises, and shall not cause or allow the surface elevation therein to be changed in any way whatsoever, without prior written approval of Lessor's City Manager or designee. 23. Lessee's Obligation to Ouit. Lessee shall, upon termination of this Lease, leave and peaceably and quietly surrender and deliver to Lessor the Leased Premises and all improvements, buildings, and fixtures hereon or constituting a part thereof, and any replacements or renewals thereof in a good condition, order, and repair as the same were at the Commencement Date or thereafter may have been put, reasonable wear and use excepted. Notwithstanding the foregoing or anything in this Lease to the contrary, Lessee shall have the right at any time during this Lease to remove from the Leased Premises Lessee's trade fixtures, furniture, equipment, and personal property, provided that Lesseg repairs any damage caused by such removal. 24. Termination. This Lease may be terminated as follows: a. In the event that during the term of this Lease, funding to operate the Club is either eliminated or reduced to a point so as to render continued operation of the Club impractical or impossible, Lessee may terminate the Lease upon ninety (90) days' written notice to Lessor. b. By Lessor, in the event the Leased Premises must be reclaimed for public use due to the requirements of a governmental agency, such as the U.S. Army Corps of Engineers, upon one (1) year's notice. In the event the 8 2011 Lease Between City of National City and Boys and Girls Clubs of Greater San Diego Attachment 3 Leased Premises are reclaimed for public use due to the requirements of a governmental agency, Lessor will provide, to the extent it determines its resources will allow and without any financial obligation on Lessor's part, assistance to Lessee in the relocation of Lessee to an alternative site substantially the same as the Leased Premises and acceptable to the Lessee for the purposes and operation of the business of Lessee. c. By Lessor upon the occurrence of one or more of the following defaults ("Defaults"), and the failure of Lessee to cure any such Default within any applicable grace period. i. The failure of Lessee to provide reasonable evidence of insurance within thirty (30) days of the renewal of any policy required herein; ii. The failure of Lessee to fulfill any obligation of Lessee under this Lease which endangers or threatens life or property, where such failure continues for a period of five (5) business days following written notice from Lessor. iii. A failure by Lessee to perform any material obligation of Lessee (other than those described above), where such failure continues for a period of thirty (30) days after written notice from Lessor; provided, however, that if the nature of Lessee's failure to perform is such that more than thirty (30) days are reasonably required for its cure, then it shall not be deemed to be a Default if Lessee commences such cure within said thirty (30) day period, and thereafter diligently prosecutes such cure to completion. iv. The failure by Lessee in conducting its activities to adhere to the provisions of the Requirements for Membership as a Member Organization of the Boys and Girls Club of America, as amended from time to time, the current version of which is attached hereto as Exhibit "C" and incorporated herein by reference d. By Lessee, for Lessor's breach of any covenant, obligation, or condition contained in this Lease which is not cured within thirty (30) days immediately following written notice from the Lessee of such alleged breach, provided, however, that if the nature of Lessor's failure to perform is such that more than thirty (30) days are reasonably required for its cure, then it shall not be deemed to be a Default if Lessor commences such cure within said thirty (30) day period, and thereafter diligently prosecutes such cure to completion. e. By mutual agreement of the Parties hereto. f. By expiration of the Teiui. 9 2011 Lease Between City of National City and Boys and Girls Clubs of Greater San Diego Attachment 3 g. Notwithstanding anything in this Lease to the contrary, upon termination of the Lease, neither Lessor nor Lessee shall have any further obligations or responsibilities under the Lease or relating to the Leased Premises, and each party shall be deemed to have released the other from any such further obligations or responsibilities without the need for further action. Notwithstanding the foregoing, each party shall remain responsible to the other for any obligations arising under the Lease which occurred prior to such date of termination. 25. Lessor Remedies upon a Lessee Default. If Lessee is in Default and has failed to cure such Default within any applicable grace period, Lessor may, at its option, perform such duty or obligation giving rise to the Default on behalf or Lessee, including but no limited to the obtaining of reasonably required insurance policies, or government licenses, permits, or approvals. The costs and expenses of any such performance by Lessor shall be due and payable by Lessee within ten (10) days of receipt of invoice therefore. If any check given to Lessee shall not be honored by the bank upon which it is drawn, Lessor, at its option, may require all future payments to be made by Lessee to be by cashier's check. In the event of a Default which Lessee has failed to cure within any applicable grace period, or undertaken reasonable action to cure within any applicable grace period, Lessor may, with or without future notice or demand, and without limiting Lessor in the exercise of any right or remedy which Lessor may have by reason of such Default, terminate the Lessee's right to possession of the Leased Premises by any lawful means; continue the Lease; and for pursue any other remedy now or hereafter available under the laws or judicial decision of the State of California. 26. Lessee's Remedies Upon a Lessor Default. Lessor shall be in default under this Lease ("Lessor Default") if Lessor fails to perform any of the obligations of Lessor under this Lease, and such failure continues for a period of thirty (30) a days after written notice from Lessee; provided, however, that if the nature of Lessor's failure to perform is such that more than (30) days are reasonably required for its cure, then it shall not be deemed to be a Lessor Default if Lessor commences such cure within said thirty (30) day period and thereafter diligently prosecutes such cure to completion. The rights and remedies of Lessee upon a Lessor Default shall be cumulative, and upon a Lessor Default Lessee may pursue any and all rights and remedies at law or in equity, whether at the same time or otherwise. 27. Hazardous Substances. Lessee shall indemnify, protect, and hold harmless Lessor and each of its respective subsidiaries from and against all costs and damages incurred by Lessor in connection with the presence, emanation, migration, disposal, release, or threatened release of any oil or other petroleum products or hazardous materials or substances on, within, or to or from the Leased Premises as a result of (i) the operations of Lessee after the Commencement Date, and (ii) the activities of third parties affiliated with Lessee or invited on the Leased Premises by Lessee after the Commencement Date and during the term of this 10 201 I Lease Between City of National City and Boys and Girls Clubs of Greater San Diego nttachm nt 3 Lease, Each party agrees that such party will promptly give written notice to the other party of any investigation, claim, demand, lawsuit, or other action by any governmental or regulatory agency or private party involving the Leased Premises and any hazardous substance or environmental law of which such party has actual notice. 28. Taxes. Lessee recognizes and understands that this Lease may create a possessory interest subject to property taxation, and that Lessee may be subject to the payment of property taxes levied on such interest. Lessee further agrees to pay any and all property taxes, if any, assessed during the term of this Lease, pursuant to Section 107 and 1 07. 1 of the Revenue and Taxation Code, against Lessee's possessory interest in the Leased Premises. 29. Representations and Warranties. The parties represent and warrant that they have powers adequate for the execution, delivery, and performance of their obligations under this Lease; they have taken all necessary actions required to make this Lease the valid and enforceable obligation it purports to be, and this Lease has been duly executed and delivered. 30. Severability; Choice of Law. If any provision of this Lease shall be declared to be void or unenforceable either by law or by a court of competent jurisdiction, the validity or enforceability of remaining provisions shall not thereby be affected. 31. Brokers. Each party hereto represents and warrants to the other that it has not dealt with any broker in connection with the Leased Premises or this Lease. Each party hereto hereby indemnifies and holds the other harmless from and against any liability for commissions due any broker of finder with whom such party has dealt in connection with this Lease. 32. Mailings and Noticing. All notices or other communications required or permitted hereunder shall be in writing, and shall be personally delivered or sent by overnight mail (Federal Express or the like); or sent by registered or certified mail, postage prepaid, return receipt requested; or sent by ordinary mail, postage prepaid; or telegraphed or cabled; or delivered or sent by telex, telecopy, facsimile, fax or email; and shall be deemed received upon the earli of (i) if personally delivered, the date of delivery to the address of the persoto receive such notice; (ii) if sent by overnight mail, the business day following its depositin such overnight mail facility; (iii) if mailed by registered, certified, or ordinary mail, three (3) days (five (5) days if the address is outside the State of California) after the date of deposit in a post office, mailbox, mail chute, or other like facility regularly maintained by the United States Postal Service; (iv) if given by telegraph or cable, when delivered to the telegraph company with charges prepaid; or (v) if given by telex, telecopy, facsimile, fax, or email, when sent. Any payment, notice, request, demand, direction, or other communication delivered or sent as specified above shall be directed to the following persons: 11 2011 Lease Between City of National City and Boys and Girls Clubs of Greater San Diego Attachment To the Lessor: Chris Zapata City Manager City of National City 1243 National City Boulevard National City, California 91950-4301 Email: czapata@a,nationalcityca.gov Phone: 619-336-4240 Fax: 619-336-4327 To the Lessee: Danny Sherlock President Boys and Girls Clubs of Greater San Diego, Inc. 115 West Woodward Escondido, CA 92025 Email: dsherlock(a�sdvouth.org Phone: 760-746-3315 Fax: 760-740-0240 Withacopyto: Claudia G. Silva City Attomey City of National City 1243 National City Boulevard National City, California 91950-4301 Email: csilva@nationalcityca.gov Phone: 619-336-4220 Fax: 619-336-4327 With a copy to: Laura Bright, Esq. White and Bright, LLP 970 Canterbury Place Escondido, CA 92025 Email: lbright(aiwhiteandbright.com Phone: 760-747-3200 Fax: 760-747-5574 33. Entire Agreement. This Lease supersedes any prior agreements, negotiations, and communications, oral or written, and contains the entire agreement between the parties as to the subject matter hereof. No subsequent agreement, representation, or promise made by either party hereto, or by or to an employee, officer, agent, or representative of any party hereto shall be of any effect unless it is in writing and executed by the party to be bound thereby. 34. Construction. The parties acknowledge and agree that (i) each party is of equal bargaining strength; (ii) each party has actively participated in the drafting, preparation and negotiation of this Lease; (iii) each such party has consulted with or has had the opportunity to consultwith its own, independent counsel and such other professional advisors as such party has deemed appropriate, relative to any and all matters contemplated under this Lease; (iv) each party and such party's counsel and advisors have reviewed this Lease; (v) each party has agreed to enter into this Lease following such review and the rendering of such advice; and (vi) any rule or construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Lease, or any portions hereof, or any amendments hereto. 35. No Agency. Nothing in this Lease Agreement shall cause or imply any agency relationship or duty between Lessor and Lessee. 36. Counterparts. This Lease may be signed in counterparts. 12 2011 Lease Between City of National City and Boys and Girls Clubs of Greater San Diego nttachmont 3 37. Recordation. This Lease may be recorded by either party hereto. IN WITNESS WHEREOF, the parties hereto have caused this Lease Agreement to be executed by their duly authorized officers or representatives as of the day and year first above written. CITY OF NATIONAL CITY By: Ron Morrison, Mayor OVED AS TO FORM: audia .i1va City A :rney THE BOYS & GIRLS CLUBS OF GREATER SAN DIE (Corporation • its o ! • orate officers) anny Sherlock President and CEO By: iflityr-4,_ Robert Burson Board Chairman 13 2011 Lease Between City of National City and Boys and Girls Clubs of Greater San Diego Attarhmant CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California ) County of San Diego ) On August 22, 2011, before me, Virginia Miller, Notary Public, personally appeared Ron Morrison, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. 1 certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. 4 e o No a P ry VIRGINIA MILLER Commission 0 1874999 Ni: Notary Public - California Lc7, ►0' Rey Coon. EXRIMS Ow San Obago Cep Place Notary Seal Above Attachment 3 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of ;Vcfib On 7-a.7Da� 11 v personally appeared -ban 44 before me, Here insert Name and Title of th Officer l -r Name(s)oft Sfgner(s , Notary PubLicy LAURA 8. BRIGHT Commission 1a 1824911 Notary Public - California a San Diego County M Comm. res Doc 22, 2012 Place Notary Seal Above who proved to me on the basis of satisfactory evidence to be the person, -whose name ^is/a e- subscribed to the within instrument and acknowledged to me that he4bef[Ier executed the same in his/beP/thpir authorized capacity(iT ;, and that by his/l�(4r/t#la4ir signature 'J on the instrument the personf,,d), or the entity upon behalf of which the person acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. �,�y Signature:r OP/y' 1 BOI�AL Signature of Notary Publ,� is 1 Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached D ument Title or Type of Document: Document Date: Number of Pages: / J Signer(s) Other Than Named Above: Capaclty(Ies) Claimed by Signer(s) Signer's Name: —001, r'1, tV7 Signer's Name: ❑ Corporate Officer — Title(s): :J Corporate Officer — Title(s): 0 Individual 0 Partner — LJ Limited 0 General E. Attorney in Fact C Trustee fl Guardian or Conservator fl Other: fl Individual • Partner — 0 Limited General O Attomey in Fact ❑ Trustee 11 Guardian or Conservator • Other: Signer Is Representing: RICIiT THuLiBPRINT" 9F'SIGNER Signer Is Representing: ® 2009 Mahone) Notary Association • Nation&Notary.org • 1-800,US NOTARY (1-60-876-6827) RIGITT Tfiurv1BPRINTT` -R Top of thumb here N"5142T-V40C - t7 Alf-Tt$ W Item 05907 Attachment 3 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT .iCs�>;:?.N.:�a;:aa:�.��•;::BSc;a)i;:'�<:a3G..as�....s..vaa!�..i�S s„���s�<,�^-�C,: �c�c�S..„:=t.=.a`�,.+.S.rc�.z,�?\ram\a:y17,"rr, a�c�c�a�v1+�., \:'�e!c>y, �v �c..^•..g�?t i;;«f�ciC!:� Slate of California .3 County of t.•t h 1D Fes 0 on f 27-1?-C� l to personally appeared } before me, ('; 3� N of a�l�j ��.l t C , � ,�ere rt Name jr, of the Micas �J.J uas EMILY PIT COMM. #1938258 Notary Public - California c San Diego Coun Corm 24 2015 Place Notary Seal Above who proved to me on the basis of satisfactory evidence to be the person(al whose name(s) is/ar,s subscribed to the within instrument and acknowledged to me that he/she1tl ey executed the same in his/4ter><ttieir authorized capacity(ies), and that by his/Iterttreir signature(s) on the instrument the person(, or the entity upon behalf of which the person($)' acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature OPTIONAL Though the information below is not required by taw, It may prove valuable to persons retying on the document and could prevent fraudulent removal and reattachment of this form to another document, Description of Attached Document Title or Type of Document: Document Date: Numbe Signer(s) Other Than Named Above: Capacity(les) Claimed by Signer(s) Signer's Name: C Individual C Corporate Officer — Title(s): ❑ Partner — C Limited ❑ Gen fl Attorney in Fact ❑ Trustee D Guardian or Cons- ator O Other Signer Is - epresenting• 'RIGI T THUNIBPRINri OFSIGNEn' Top of thumb hore ages: Signer's Name: 0 Individual D Corporate Officer — Title(s): D Partner — O Limited L i General D Attorney in Fact ❑ Trustee 0 Guardian or Conservator D Other: Signer Is Representing: jRIGHTTHUMRPRINT:'! OF.SIGNER Top 01 thumb here 02007 National Notary Association • 9350 De Solo Ave., P.O.80(2402 •Chatsworth, CA 013i -2402 •.wvw.NatianelNotary.org Item 05907 Reorder: Cell Tolf-tree 1-800-876-6e27 Attachment 3 EXHIBIT "A" That portion of Blocks 3 and 4 per Map No. 552, Records of San Diego County, California, November 4, 1914, together with closed and vacated to public use portions of 14th Street, 15th Street and C Avenue, described as follows: COMNNIENCIfsiC at the Southeast corner of said Block 4; Thence along the Southerly prolongation of the Easterly line of said Block 4, South 17°47'04" East, 4.24 feet to the POINT OF BEGINNING; 1. Thence leaving said line, South 71° 56' 15" West; 249.51 feet; 2. Thence South 28° 47' 57" West, 16.17 feet; 3. Thence North 79° 32' 30" West, 9.76 feet; 4. Thence North 88° 10' 29" West, 10.10 feet; 5. Thence South 81° 39' 55" West, 10.18 feet; 6. Thence South 68° 32' 00" West, 48.87 feet; 7. Thence North 71° 20' 52" West, 29.69 feet; 8. Thence North 67" 43' 17" West, 19.80 feet; 9. Thence North 61 ° 15' 54" West, 39.52 feet; 10. Thence North 30° 13' 11. Thence North 23° 22° 12. Thence North 37° 26' 13. Thence North 43° 43' 14. Thence North 51 ° 18' 15. Thence North 60° 34' 16. Thence North 16° 40' 17. Thence North 34° 52' 18. Thence North 71° 34' fine of said Block4; 19. Thence along said line, South 17° 47' 04' East, 266.11 feet to the POINT OF BEGINNING. Said land contains 75, 760 S.F., more or less. This legal description has been prepared by me, or under my direction, in conformance with the Professional lrand urveyors Act. Signature: 16" West, 15.13 feet; 20" East, 37.88 feet; 19" East, 69.13 feet; 42" East, 79.18 feet; 19" East, 19.29 feet; 10" East, 128.19 feet; 03" West, 41.65 feet; 24" East, 27.92 feet; 26" East, 89.80 feet to the Northerly prolongation of Easterly Jo n R. Berggren, L.S. 6000 Lic nse Expires 12/31/2010 Date: January 4, 2009 Attachment 3 LINE TABLE LINE BEARING DISTANCE LINE BEARING DISTANCE 11 S71'56'15"W 249.51' Li S23'22'20"W 37.88' L2 S28'47'57"W 16.17' 1...12 N37'26'19"E 69.13' L3 S79'32'30"E 9.76' 113 N43'43'42"E 79.18' L4 S88'10'29"E 10.10' L14 N5118'19"E 19.28' L5 N81'39`55"E 10.18' L15 S60'34'10"W 12B.19' L6 N68'32'00"E 48.87' L16 S16'40'03"E 41.65' L7 S71'20'52"E 29.69' L17 S34'52'24"W 27.92' L8 1467'43'17"W 19.80' L18 . S71'34'26"W 89.80' L9 N6115'54"W 39.52' L19 S17'47'04"E 266.11' L10 S30'13'16"E 15.13' BLOCK 3 L10 1') / 0 1 CURRENT SOUTHEAST LEASE t;ORNER OF ( / n "IAA - AREA BLOCK 4 4.24' l� 1 _ 1' ✓ iii \ `� --...-- BEGINNING 0 POINT OF \\`i L4 j -%�� BEGINNING (9 r_'� ffYY�0 C V 5 L3 L2 NEW LEASE AREA = 75,670 SF Exhibit B SCALE 1"= 100' IN ASSOCIATION WITH: TETRA TECH BERGGREN & ASSOCIATES LAND SURVEYING AND RIGHT Of WAY MAPPING 6046 CORNERSTONE COURT WEST #116 SAN DIEGO, CALIFORNIA 92121 (858) 824-0034 / (858) 824-0036 Attachment 3 EXHIBIT "C" Depiction of the Premises Club hereby Subleases to EC Services that portion of the Club's Facility as follows: Sublease -BOYS' AND GIRLS' CLUBS AND EC SERVICES NATIONAL CITY BRANCH 29 1 • la 11, 0 TCODFPLAN 21.07 S.F. la.u.r.s.4 321101. an% U2.112 11111 tswe Leo IrD 16 ? Pee. . ler - rite • 6151 11. • • ED r 2T. 0.4. -14/ 11,2 2 • 1 1241344 1 I... e 612311.1t. 1/..11 r. par Viirtt efrala ant tZg mar arrl , II"' 'Ye:fri't r. a..4inv au/ se. 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