HomeMy WebLinkAbout2005 CON CDC MRW Group Inc - Lease Agreement DepotC 2oos -'1s
LEASE AGREEMENT
By and between the
COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF NATIONAL CITY
and
MRW GROUP, INC.
This Lease made and entered into this 12th day of April, 2005 by and between the
Community Development Commission of the City of National City, hereinafter designated
as "Lessor," and MRW Group, Inc., hereinafter designated as "Lessee."
RECITALS
A. Lessee is desirous of leasing from Lessor, and Lessor is desirous of leasing to
Lessee, certain real property identified as the Southwest corner office of the
second floor of the National City Depot located at 922 West 23rd Street, in National
City, California, (Office Space) for the purpose of providing one office working
space.
B. The use of said property for the purposes aforementioned will promote the general
welfare of all inhabitants in 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 situated in the City of National City, County of San Diego, State of
California, commonly described as the Southwest corner office of the second floor
located at 922 West 23rd Street, otherwise known as the National City Depot and
whose description is attached hereto as Exhibit "A".
2. Term. The term of this lease shall be for a period of six (6) months, beginning on
the date first above written, unless sooner terminated as provided herein, with an
option to the Lessee to renew for three (3) additional six (6) month terms.
3. Rent. Lessee shall pay as rent for the leased premises the sum of one hundred
and No/100 Dollars ($100.00) per month for the term of this lease, prepaid on
April 15 and October 1, as the Lease is executed and options are exercised.
4. Use. Lessor leases the above -described premises to Lessee for the purpose of
providing one office space.
5. Legal status of Lessee. Lessee warrants that it is a legal corporation, incorporated
under the laws of the State of Nevada.
Office Space Lease
6. Assignment. This Lease shall not be assigned, hypothecated, leveraged, or
transferred without the consent in writing of the CDC, evidenced by a resolution
hereof duly adopted for said purpose.
7. Improvements. The property contains office space. Lessee shall maintain all
improvements in conformance with the laws of the State of California and the
ordinances of the City of National City, in connection therewith and in the operation
and maintenance thereof.
8. Common areas and Utilities. Exhibit "B", signed by the parties, shall be attached
to this Lease and is the Agreement among the parties for cost sharing, access,
security and other Lessee logistics between MRW and the San Diego Electric
Railway Association, which is also a Lessee in the Depot.
9. Repair. Lessor shall not be liable for the repair or upkeep and/or maintenance of
any improvements located or to be located on the leased premises. Lessee shall
be responsible for all customary tenant maintenance and repair for leases of this
nature, and the pro -rated costs of all utilities for the leased premises. Lessee shall
keep the leased premises in as good order, condition and repair as reasonable
use and wear thereof will permit.
10. Hold Harmless. Lessee hereby agrees to indemnify, defend, and hold harmless
the Community Development Commission of the City of National City, the City of
National City and their officers and employees from all liability, Toss, costs, claims,
demands, suits, and defense costs arising out of the use and maintenance of the
leased premises and the improvements thereon by Lessee or any sub -lessee.
11. Insurance. Lessee shall take out and maintain, throughout the period of this
Lease, comprehensive general liability insurance with minimum limits of One
Million Dollars ($1,000,000.00) combined single limit per occurrence, covering all
bodily injury and property damage arising out of this Lease.
This policy shall name Lessor the Community Development Commission of the
City of National City, the City of National City, and their officers, agents, and
employees as additional insured, and shall constitute primary insurance as to
Lessor, its officers, agents and employees, so that any other policies held by
Lessor shall not contribute to any loss under said insurance. Said policy shall
provide for thirty (30) days' prior written, notice to Lessor of cancellation or material
change. Prior to commencement of this Lease, Lessee shall furnish Lessor a
certificate of insurance and with original endorsements affecting coverage required
by this clause.
The certificate and endorsements for the insurance policy are to be signed by a
person authorized by that insurer to bind coverage on its behalf. The certificate
and endorsements are to be received and approved by Lessor before this
Agreement is signed.
April 12, 2005
Page 2 of 4 MRW Depot Group Lease Agreement
Office Space Lease
Lessee shall keep the improvements located on the leased premises insured
against Toss or damage by fire in the amounts not Tess than eighty-five percent
(85%) replacement value.
If the required insurance coverage is provided on a "claims made" rather than
"occurrence" form, Lessee shall maintain such insurance coverage for three (3)
years after expiration of the term (and any extensions) of this Lease.
If Lessee does not keep an insurance policy in full force and effect at all times
during the term of this Lease, Lessor may elect to treat the failure to maintain the
requisite insurance as a breach of the contract and terminate this Lease forthwith.
12. Inspection. Lessor, by and through its proper officers, reserve 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.
13. Termination. This Lease may be terminated for cause by either party upon thirty
days written notice. Causes for termination shall include, but not be limited to,
failure to comply with the Disposition and Development Agreement for Marina
Gateway (DDA), failure to obtain a Building Permit to construct the Project within
terms specified within the DDA, failure to submit Parking Premises' improvement
plans or to construct the improvements, including landscaping, prior to the date an
Occupancy Permit is issued for the Project, failure to obtain an Occupancy Permit
for the Project within terms of the DDA, failure to comply with terms of this Lease,
or at such time the Lessee secures a mutually acceptable alternative resolution to
the parking requirements for the Project.
14. 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 leasing, subleasing, transferring, use, occupancy,
tenure, or enjoyment of the leased premises, 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 tenants, lessees, subleases, subtenants, or vendees in the
leased premises.
15. 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.
April 12, 2005
Page 3 of 4
MRW Depot Group Lease Agreement
Office Space Lease
16. 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 the CDC.
17. 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 all property taxes, if any, assessed during the term of this Lease pursuant to
Sections 107 and 107.1 of the Revenue and Taxation Code against Lessee's
possessory interest in the leased premises.
IN WITNESS WHEREOF, this Lease is executed by the Community Development
Commission of the City of National City, pursuant to resolution authorizing the Chairman
to execute the same for and on behalf of said CDC, and MRW, Inc. has caused this
instrument to be executed by its proper representatives thereon to duly authorize.
Community Development Commission MRW G • up , corporated
Of the City of National City
�I)
1
By:
APPROVED AS TO FORM:
By:
George Eiser, III
Legal Counsel
Bv:
c ae R. Weber, President
April 12, 2005
Page 4 of 4
MRW Depot Group Lease Agreement
Office Space Lease
EXLIIBIT A
SAN DIEGO ELECTRIC RAILWAY ASSOCIATION
IIAV. • �-... lill
R 507(013) Corpo,a ,,
P. 0_ Box 89068 • San Diego, Catitomia 92138 • Message Phone (819) 699-8690
February 13, 2006
Mr. Ivar Leetma, MRW
922 W. 23`d Street
National City, CA 91950
Dear Ivar,
In our previous discussions, you have agreed to pay a pro rata
share of some of the operating expenses for the National City
depot, commencing May 1, 2005. These expenses include such items
as utilities, security, and maintenance.
We sent you a letter dated October 20, 2005, which listed the
monthly recurring expenses for operating the depot of which we
requested that you a pay a portion. You indicated in subsequent
discussions that you wanted more information about the line item
"repairs and maintenance" at $300 per month. Unlike utilities and
security which are largely predictable, the depot requires a fair
amount of both scheduled and unscheduled maintenance and repairs.
Both you and we as tenants are beneficiaries of getting this type
of work done, The $300 figure is more of a budget number, based
on our experiences of the past two years, than an actual monthly
expense.
However we now ask that you agree to the following: pay 20i of
our average monthly costs for:
Gas & Electricity $200 x 0.2 = $40
Water $ 65 x 0.2 $13
Security $ 55 x 0.2 = $11
plus $36 per month for a share of repairs and maintenance. That
would be a total of $100 per month, $25 less than in our previous4-
letter.
Please pay to SDERA the sum of $900 at your earliest convenience -
$100 per month for the period of May 1, 2005 to Feb 1, 2006. And
then pay to SDERA the sum of $100 per month thereafter, through
the current duration of our maintenance and operating agreement
with National City, April 30, 2007.
Thanks in advance for your sharing with us in the depot
operations. Feel free to contact me if you have questions.
Cc: Tom Matson, Treasurer
For ride SpyRA Soard,
Price, President
Opera tors of
The National City Depot • 922 West 23rd Street • National City, California 91950 • (619) 474-4400
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