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HomeMy WebLinkAbout2006 CON Mossy Nissan - Lease National City Train Depot SiteLEASE AGREEMENT By and between the COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY and MOSSY NISSAN, INC This Lease, made and entered into this 46' day of April 2006 by and between the Community Development Commission of the City of National City ("CDC"), hereinafter designated as "Lessor," and Mossy Nissan, 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 southern portion of the parking lot (all real property 185 feet north of southern property boundary) located at 922 West 23th Street in National City, California ("Vehicle Storage") to facilitate vehicle storage for automobile dealers on the Mile of Cars in National City, California. "Vehicle Storage" is more fully described as Lessee's exclusive use of a 15,500 square feet area on Exhibit "A" as Vehicle Storage. 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. LEGAL STATUS OF OPERATOR: Operator warrants that it is a legal corporation, incorporated render the laws of the State of California. 2. 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 Califomia, commonly described as westem portion of the lot located at 900 West 23'd Street, otherwise known as the National City Depot site and whose legal description is attached hereto as Exhibit "B." 3. Term. The term of this lease shill be a month -to -month lease, but no longer than five (5) months, beginning on the date first above written. Lessee acknowledges that the use of the site is temporary and agrees t, diligently seek an alternative method of vehicle storage. Lessee to initial here date 4. Rent. ssee shall pay as rent for the leased premises ten ($.10) cents per square foot for approximately 15,500 square feet of space, or One Thousand Five Hundred Fifty and 00/100 Dollars ($1,550.00) per month for the term of this lease, payable on the of each month commencing on the date of signing by the Lessor. Page 1 of 5 5. Mailings & 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 earlier of (i) if personally delivered, the date of delivery to the address of the person to receive such notice, (ii) if sent by overnight mail, the business day following its deposit in such overnight mail facility, (iii) if mailed by registered, certified or ordinary mail, five (5) days (ten (10) 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: To the Lessor: To the Lessee: Chris Zapata Executive Director Community Development Commission of the City of National City 1243 National City Boulevard National City, CA 91950-4397 Mossy Nissan Inc. Attention: Philip E. Mossy, President 4555 Mission Bay Drive San Diego, CA 92109 6. Ese. The above -described premises are leased to Lessee by Lessor for the purpose of providing vehicle storage. 7. 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. 8. Improvements. 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, 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 maintenance and repair, and the costs of all utilities on the leased premises. Lessee shall keep the leased premises in as good order, condition and repair as reasonable use and wear thereof will permit. Lessor shall cause the landscaped areas to be cared for, trimmed, mowed, and weeded as necessary to maintain an attractive property. I0. 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, loss, 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 Leap, 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. Page 2 of 5 This policy chart 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 cha11 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. Lessee shall keep the improvements loeated on the leased premises insured against loss or damage by fire in the amounts not less 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 T ease. 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 1 ease 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 by either party (without cause) upon thirty (30) days written notice. 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 ibis Lease tb-reafter, either for such or for any subsequent violation of any such term, condition or covenant. 16. Sims. 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. Lessee also agrees to pay for and obtain all required regulatory approvals (permits) for any signage deemed necessary for the property. Page 3 of 5 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. 18. 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 may otherwise be entitled under federal, state, or local law or regulations, upon vacation of the premises. 19. Termination by Lessor. Notwithstanding any other provision of this lease to the contrary, Lessor may terminate the Parking Premises lease upon thirty (30) days written notice to Lessee in the event Lessor determines the leased parking premises are uniquely suited for public, municipal or redevelopment purposes. In the event of such a temrination Lessor agrees to work with Lessee to seek reasonable alternative parking arrangements for the Project, and Lessee shall limit all of its claims for damages against Lessor to require Lessor's good faith assistance in relocating the parking for the Project. The burden of securing adequate parking for the Project, in any case, is on Lessee. 20. Environmental Compliance. Lessee shall not engage in, nor shall it permit any third party to engage in, activities upon the 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. Lessee shall be, and remain for the term of this License, in full compliance with all applicable laws governing the use and occupancy of the 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 (hereinafter collectively referred to as "Standards"). In addition, Lessee has been advised that this site has been impacted with an environmental condition, and soils at this site are therefore considered regulated materials, which cannot be excavated or disposed of of site without appropriate oversight and adherence to state and federal environmental laws. Lessee has been advised that additional information about the nature of the environmental impacts at this site is available through a review of material in the possession of Environmental Business Solutions, which company has acted as Lessor's environmental consultant for these Premises, and that no digging or excavation at the site will be authorized without appropriate environmental oversight. Lessee shall not create nor permit to be created, nor permit to exist (except for those Harmful Conditions preexisting the term of this lease) upon the Premises any non-compliance with Standards or any condition which could be alleged to create a nuisance, public, private or mixed, or to otherwise present a threat to health or property by any unhealthful, hazardous or dangerous condition (herein collectively referred to as "Harmful Conditions"). Except for those Harmful Conditions preexisting the term of this lease, Lessee shall contain any Harmful Condition to prevent it from deteriorating. Lease shall notify Lessor immediately of any Harmful Condition or non-compliance with any Standard and Lessee shall notify all responsible local, state, or federal agencies as required by local, state or federal regulations. Page 4 of 5 In the event Lessee fails to be in full compliance with the obligations assumed by Lessee herein and Lessee does not correct such non-compliance within three (3) days of written notice of such failure given by Lessor, Lessor may, but shall not be obligated to, take whatever action is necessary to bring the Premises into compliance. If however, Lessee has begun compliance within the allowed three (3) days of written notice, but such compliance cannot be accomplished with the allowed time frame, Lessor shall not interfere with Lessee's good faith efforts. If compliance has not been accomplished within fifteen (15) days, Lessor may, but shall not be obligated to, take whatever action is necessary. Lessee shall reimburse Lessor for all costs (including, but not limited to, consulting, engineering, clean up, containment, disposal, and legal costs) incurred by Lessor as a result of Lessee's failure to comply with the foregoing obligations assumed by Lessee, and also such costs as may be incurred by Lessor in abating or protecting against Harmful Conditions and/or a violation of Standards. Lessee shall indemnify, defend and hold Lessor, its employees and agents, harmless from and against any claim or lawsuit, local, state or federal enforcement action, or civil or criminal claims, which arise from or relate to any actual or alleged Harmful Conditions, actual or alleged violation of Standards, or actual or alleged injuries to or death of any persons and loss of or damages to property, including without limitation, employees and property of Lessor and Lessee, which arise during Lessee's presence on, or negligent use of, Premises. Except for those Harmful Conditions preexisting the term of this lease, Lessee expressly agrees that the indemnification, and hold harmless obligations assumed by Lessee with regard to abatement of Harmful Conditions and violations of Standards in this Article, shall survive expiration or termination of this Lease. 20. Obstruction. Except as permitted by this Lease, Lessee shall not place, install, maintain, or allow any combustible materials (except gasoline and petroleum products in automobiles parked on the premises), buildings, structures, or other improvements upon the Licensed Premises and shall not cause or allow the surface elevation therein to be changed in any way whatsoever, without Lessor prior written approval. 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 Mossy Nissan, Inc., has caused this instrument to be executed by its proper representatives thereon to duly authorized. Community Development Commission Mossy Nissan, Incorporated Of the City of National City By: Nick APPROVED AS TO FORM: By: /fr.-4f George E, CDC Attorney Tg By: Page 5 of 5 Philip o - , President John E Secre 4 fl. 760-O94-07 POR.y4' W.R. 3 WIC. MAP 304-37-2011 MIN. an, ONLY 111111111 1-800-345-7334 111111111 2 I11111111 3 11/111111 4 11.11111.1 5 11/111111 semi 111 one or lu ire1E 234.2 AC PAq. 24 4se 4 0 2. YIN, N 0..1MNP 30<-37-20+16 SSA 34 PAR. 73 58E NAP 004-37- 23AJ .33N85 .151 3 3370 1°Ic so•: 4 SHT 1 A. 5 OO°57'34•W B. 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MAP 904-37-2493 M'N. 373. 0?&Y Y 200 r. moo b VEI it EXHIBIT "B" RESOLUTION NO. 2006 — 66 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY AUTHORIZING THE CHAIRMAN TO EXECUTE A LEASE WITH MOSSY NISSAN, INCORPORATED FOR THE USE OF THE SOUTHERN PORTION OF THE NATIONAL CITY TRAIN DEPOT SITE (922 WEST 23RD STREET) FOR VEHICLE STORAGE AS A SHORT-TERM/INTERIM USE PRIOR TO THE OPENING OF THE MARINA GATEWAY HOTEL WHEREAS, the Community Development Commission is engaged in activities necessary to execute and implement the Redevelopment Plan for the National City Redevelopment Project; and WHEREAS, in furtherance of the objectives of the California Community Redevelopment Law (California Health and Safety Code Section 33000 et seq.), the Community Development Commission desires to facilitate redevelopment of the Marina Gateway sites in the National City Harbor District; and WHEREAS, Mossy Nissan, Incorporated desires to use facilities at the National City Train Depot site to provide vehicle storage, facilitating re -use of an underutilized property; and WHEREAS, Lease revenue is not less than fair -market for the prescribed terms of the Lease; and WHEREAS, Lease revenue will provide funding for on -going redevelopment activities to assist in the elimination of blight; and WHEREAS, on April 4, 2006, the Community Development Commission held a noticed public hearing, at which oral and documentary evidence was received concerning the proposed lease. NOW, THEREFORE, BE IT RESOLVED that the Community Development Commission of the City of National City hereby authorizes the Chairman to execute the lease with Mossy Nissan, Incorporated for the use of the southern portion of the National City Train Depot site in consideration of fair market value. ATTEST: Chri PASSED and ADOPTED this 4th day of April, 2006. ick q%"f:'r a, Chairman APPROVED AS TO FORM: George H. Eiser, III Legal Counsel Passed and adopted by the Community Development Commission of the City of National City, California, on April 4, 2006, by the following vote, to -wit: Ayes: Councilmembers Inzunza, Morrison, Natividad, Parra, Zarate. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: NICK INZUNZA Chairman Community Development Commission CHRIS ZAPATA Secretary Community Development Commission By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2006-66 of the Community Development Commission of the City of National City, California, passed and adopted on April 4, 2006. Secretary Commyrnjhy,evelopment Commission By: Deputy City of National City, California COMMUNITY DEVELOPMENT COMMISSION AGENDA STATEMENT MEETING DATE April 4, 7006 AGENDA ITEM NO. 18 1 ITEM TITLE Resolution — Consideration of a lease with Mossy Nissan Incorporated to use the southern portion of the National City Train Depot Site (922 West 23ra Street) for vehicle storage as a short-term interim use, prior to opening of the Marina Gateway Hotel and authorizing the Chairman to execute the lease. PREPARED BY DEPARTMENT David Parsons Community Development Commission CDC Project Manager (619) 336-4297 EXPLANATION The southern portion of the Train Depot parking lot is underutilized at this time. Prior to its need for Hotel overflow parking, staff proposes leasing the southern parking lot to Mossy Nissan Inc. for vehicle storage. There are two major benefits; first the City of National City should realize additional sales tax revenue from local car dealers having improved local inventories. Also, the CDC will realize additional revenue that will be used to promote redevelopment objectives in the National City Redevelopment Project Area. Environmental Review The proposed agreement is exempt from CEQA review. Financial Statement There are no costs to the CDC for entering into the lease. The CDC purchased the property in 1995 for $1,200,000. Rental for vehicle storage will be $1,550 per month, which will be used to facilitate on -going redevelopment activities. Mossy Nissan Inc. will be responsible for any improvements and maintenance of the premises. Account No STAFF RECOMMENDATION Adopt resolution authorizing the Chairman to execute the lease. BOARD / COMMISSION RECOMMENDATION Adopt resolution approving the lease with Mossy Nissan Inc., to use the southern portion of the National City Train Depot Site (922 West 23ra Street) for vehicle storage as a short-term interim use, prior to opening of the Marina Gateway Hotel and authorizing the Chairman to execute the lease. rATTACHMENTS Resolution No. 1c c 6 • A-200 (9/80) RESOLUTION NO. 2006- A RESOLUTION OF THE NATIONAL CITY COMMUNITY DEVELOPMENT COMMISSION APPROVING A LEASE WITH MOSSY NISSAN, INCORPORATED TO USE THE SOUTHERN PORTION OF THE NATIONAL CITY TRAIN DEPOT SITE (922 WEST 23RD STREET) FOR VEHICLE STORAGE AS A SHORT-TERM/INTERIM USE, PRIOR TO THE OPENING OF THE MARINA GATEWAY HOTEL AND AUTHORIZING THE CHAIRMAN TO EXECUTE THE LEASE WHEREAS, the Community Development Commission of the City of National City is engaged in activities necessary to execute and implement the Redevelopment Plan for the National City Redevelopment Project; and, WHEREAS, in furtherance of the objectives of ,the California Community Redevelopment Law (California Health and Safety Code Section 33000 et seq.), the Community Development Commission desires to facilitate redevelopment of the Marina Gateway sites in the National City Harbor District; and, WHEREAS, Mossy Nissan, Incorporated desires to use facilities at the National City Train Depot site to provide vehicle storage, facilitating re -use of an underutilized property; and, WHEREAS, Lease revenue is not Tess than fair -market for the prescribed terms of the Lease; and WHEREAS, Lease revenue will provide funding for on -going redevelopment activities to assist in the elimination of blight; and, WHEREAS, on April 4, 2006 the Community Development Commission held a noticed public hearing, at which oral and documentary evidence was received concerning the proposed lease. NOW, THEREFORE, BE IT RESOLVED THAT the Community Development Commission of National City hereby approves a lease with Mossy Nissan, Incorporated for the use of the southern portion of the National City Train Depot site in consideration of fair market value; and, BE IT FURTHERED RESOLVED THAT the Community Development Commission of National City authorizes the Chairman to execute the lease. PASSED AND ADOPTED this 4th day of April 2006. Nick Inzunza, Chairman ATTEST: Chris Zapata, Executive Director APPROVED AS TO FORM: George H. Eiser, III, City -CDC Attorney -2- STATE OF CALIFORNIA COUNTY OF SAN DIEGO CITY OF NATIONAL CITY ) ss. I, Chris Zapata, Executive Director of the Community Development Commission of National City, do hereby certify that the foregoing Resolution No. 2006-XX was adopted at a regular meeting of the Community Development Commission of National City held on April 4, 2006, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Chris Zapata, Executive Director -3- LEASE AGREEMENT By and between the COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY and MOSSY NISSAN, INC This Lease, made and entered into this 4th day of April 2006 by and between the Community Development Commission of the City of National City ("CDC"), hereinafter designated as "Lessor," and Mossy Nissan, 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 southern portion of the parking lot (all real property 185 feet north of southern property boundary) located at 922 West 23`d Street. in National City, California ("Vehicle Storage") to facilitate vehicle storage for automobile dealers on the Mile of Cars in National City, California.. "Vehicle Storage" is more fully described as Lessee's exclusive use of a 15,500 square feet area on Exhibit "A" as Vehicle Storage. 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. LEGAL STATUS OF OPERATOR: Operator warrants that it is a legal corporation, incorporated under the laws of the State of California. 2. 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 western portion of the lot located at 900 West 23`d Street, otherwise known as the National City Depot site and whose legal description is attached hereto as Exhibit "B." 3. Term. The term of this lease shall be a month -to -month lease, but no longer than five (5) months, beginning on the date first above written. Lessee acknowledges that the use of the site is temporary and agrees to diligently seek an alternative method of vehicle storage. Lessee to initial here date 4. Rent. Lessee shall pay as rent for the leased premises ten ($.10) cents per square foot for approximately 15,500 square feet of space, or One Thousand Five Hundred Fifty and 00/100 Dollars ($1,550.00) per month for the term of this lease, payable on the ls` of each month commencing on the date of signing by the Lessor. Page 1 of 5 5. Mailings & 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 earlier of (i) if personally delivered, the date of delivery to the address of the person to receive such notice, (ii) if sent by overnight mail, the business day following its deposit in such overnight mail facility, (iii) if mailed by registered, certified or ordinary mail, five (5) days (ten (10) 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: To the Lessor: To the Lessee: Chris Zapata Executive Director Community Development Commission of the City of National City 1243 National City Boulevard National City, CA 91950-4397 Mossy Nissan Inc. Attention: Philip E Mossy, President 4555 Mission Bay Drive San Diego, CA 92109 6. Use. The above -described premises are leased to Lessee by Lessor for the purpose of providing vehicle storage. 7. 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. 8. Improvements. 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. 9. Revak. 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 maintenance and repair, and the costs of all utilities on the leased premises. Lessee shall keep the leased premises in as good order, condition and repair as reasonable use and wear thereof will permit. Lessor shall cause the landscaped areas to be cared for, trimmed, mowed, and weeded as necessary to maintain an attractive property. 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, loss, 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. Page 2 of 5 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. Lessee shall keep the improvements located on the leased premises insured against loss or damage by fire in the amounts not less 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 by either party (without cause) upon thirty (30) days written notice. 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 tern, condition or covenant. 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. Lessee also agrees to pay for and obtain all required regulatory approvals (permits) for any signage deemed necessary for the property. Page 3 of 5 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. 18. 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 may otherwise be entitled under federal, state, or local law or regulations, upon vacation of the premises. 19. Termination by Lessor. Notwithstanding any other provision of this lease to the contrary, Lessor may terminate the Parking Premises lease upon thirty (30) days written notice to Lessee in the event Lessor determines the leased parking premises are uniquely suited for public, municipal or redevelopment purposes. In the event of such a termination Lessor agrees to work with Lessee to seek reasonable alternative parking arrangements for the Project, and Lessee shall limit all of its claims for damages against Lessor to require Lessor's good faith assistance in relocating the parking for the Project. The burden of securing adequate parking for the Project, in any case, is on Lessee. 20. Environmental Compliance. Lessee shall not engage in, nor shall it permit any third party to engage in, activities upon the 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. Lessee shall be, and remain for the term of this License, in full compliance with all applicable laws governing the use and occupancy of the 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 (hereinafter collectively referred to as "Standards"). In addition, Lessee has been advised that this site has been impacted with an environmental condition, and soils at this site are therefore considered regulated materials, which cannot be excavated or disposed of off -site without appropriate oversight and adherence to state and federal environmental laws. Lessee has been advised that additional information about the nature of the environmental impacts at this site is available through a review of material in the possession of Environmental Business Solutions, which company has acted as Lessor's environmental consultant for these Premises, and that no digging or excavation at the site will be authorized without appropriate environmental oversight. Lessee shall not create nor permit to be created, nor permit to exist (except for those Harmful Conditions preexisting the term of this lease) upon the Premises any non-compliance with Standards or any condition which could be alleged to create a nuisance, public, private or mixed, or to otherwise present a threat to health or property by any unhealthful, hazardous or dangerous condition (herein collectively referred to as "Harmful Conditions"). Except for those Harmful Conditions preexisting the term of this lease, Lessee shall contain any Harmful Condition to prevent it from deteriorating. Lease shall notify Lessor immediately of any Harmful Condition or non-compliance with any Standard and Lessee shall notify all responsible local, state, or federal agencies as required by local, state or federal regulations. Page 4 of 5 In the event Lessee fails to be in full compliance with the obligations assumed by Lessee herein and Lessee does not correct such non-compliance within three (3) days of written notice of such failure given by Lessor, Lessor may, but shall not be obligated to, take whatever action is necessary to bring the Premises into compliance. If however, Lessee has begun compliance within the allowed three (3) days of written notice, but such compliance cannot be accomplished with the allowed time frame, Lessor shall not interfere with Lessee's good faith efforts. If compliance has not been accomplished within fifteen (15) days, Lessor may, but shall not be obligated to, take whatever action is necessary. Lessee shall reimburse Lessor for all costs (including, but not limited to, consulting, engineering, clean up, containment, disposal, and legal costs) incurred by Lessor as a result of Lessee's failure to comply with the foregoing obligations assumed by Lessee, and also such costs as may be incurred by Lessor in abating or protecting against Harmful Conditions and/or a violation of Standards. Lessee shall indemnify, defend and hold Lessor, its employees and agents, harmless from and against any claim or lawsuit, local, state or federal enforcement action, or civil or criminal claims, which arise from or relate to any actual or alleged Harmful Conditions, actual or alleged violation of Standards, or actual or alleged injuries to or death of any persons and loss of or damages to property, including without limitation, employees and property of Lessor and Lessee, which arise during Lessee's presence on, or negligent use of, Premises. Except for those Harmful Conditions preexisting the term of this lease, Lessee expressly agrees that the indemnification, and hold harmless obligations assumed by Lessee with regard to abatement of Harmful Conditions and violations of Standards in this Article, shall survive expiration or termination of this Lease. 20. Obstruction. Except as permitted by this Lease, Lessee shall not place, install, maintain, or allow any combustible materials (except gasoline and petroleum products in automobiles parked on the premises), buildings, structures, or other improvements upon the Licensed Premises and shall not cause or allow the surface elevation therein to be changed in any way whatsoever, without Lessor prior written approval. 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 Mossy Nissan, Inc., has caused this instrument to be executed by its proper representatives thereon to duly authorized. Community Development Commission Mossy Nissan, Incorporated Of the City of National City By: By: Nick Inzunza, Chairman Philip E. Mossy, President APPROVED AS TO FORM: By: George Eiser, III, CDC Attorney By: John Epps, Secretary Page 5 of 5 1-800-345-7334 1 2 1{11.1111 3 IIIIIII 111111111 5 1111111 8 SCALE 1N 7l1a Of AM INCH I• EXHIBIT "A" 3.93 AC 4j�•\ LOCATION AC PAR. 74 38E AMP 804-37-284J `12 . S/� t'i6g y 4.4TAC. V.• TA4 0 r PAR.72 58E. MAP iO4 RAJ 4. 0 a .273 HARq gl oN I.3�1 AO 80a 37 26N P .GkIFr :746rcp7_r 3!i• 7 5.40.0 . 11.314C. t N 3 ti 'r •44 cso s 5.1.0. 20- 3BC. MAP 304-37-24P MIN. R13. ONLY - L. 760-044-07 PO0.4. •mil%. 14 S.I.D. 20-PAR.3RTSOS. OE. NM6-37-20V .• MIN. LYMM 544 1►' 2s 3.1.0.02 -PAR. 6R4TS.ONSBE. l44 404-37-26AC MIN. LY 3RPAR. 73 56E. MAP 604-37-26.4J cs ,A• !J' %tiy1.v A,� 6 .. J 1i 1 SHT 1 A. S 06•37'54 W 112.73 8. N63•02066W 25.10 C. N 03.42'O0' E 123.62 D R•346.12 44.63 E. 0 0402'06 C 44.64 F. S23'37.54E 65.22 G R-610.00 151.62 H s,f5J'SI'w 30.63 J. P-670.36 63.65 0 0.3."GE 04 :6f Y•• 9YAPPED Ms 1S[C51NE4! ."••0SES :.L,pp.550 .94 4 Y ;•i 4771111 i1 11 n�i1 InonI NT 1- 276 r+ "'x'RirX 38E. 'i•004-37 21 Ay 1 Ga4 L • 4.6v 0 ii iR .. � ' ;L S F O PAR E rrP.e6.�.� R. 4.21 AC 0SJ 10 - S.I.D.93-303. PAL 4 MMIIN. RTS. ONLY 26P .4.754C • < P. 0 HAFF�EY 3- 4.4 4.r 0 2.27 AC. 4- I ♦ 6 1 5 '.•. 6 .iryr•� `,7rOY + A Ln AC. 44 SHT. 2 0 it 020.0 1.3114.4 382. 604--3�OPx WIN. NNTS. O 3 ♦ OSLD.Q S 2.MAC K sl.DJ-PA16.4 "SBE. MAPM4-37-26w MIN. 415. ONLY ' a4 3131.Dp 3AOAG 559-04 AA N 68 N7.4'42'Dem 141.71 CC OPP01.41'+/ 3C-4f OD 1114•37'4Y4 77.14 231` '4P 26 S.I.D. 20-PAR.43 AIN. MMS. ONLY 7.26AA 11S4 3•l.P2 93.1.0.0 2.334C 3,13.0 - PM.36 SEE. MAP 604-37-26Y MIN. R73. ONLY 74 f. P1 PAR 77 SBE, 44P 604.37-zer A.T. Qs.r RR.©6AC J: >c .y MAP 348 - v4TIC`JAL CITY RE -FILED - TS.MPL&L GRCVIDS "44 185,219 ROS 10499 F AVE 4♦ 3.1250 sarizsYy 1.124C .Ma1 O. sx3.M-1•44.44 seE. MAP n M'N. RTS. ONLY 7-26AA '9 0 n .0♦ AVE. 4♦ ,0 51.0.0 2.064C 76 4,0.0.4.14 5 •lSBE. MAP 1304-37-2T4 MIN. R75. ONLY JI 1.0e i MN 0 5 2000 cr•3 4rnII �H( F- 07 EXHIBIT "B" City of National City Office of the City Clerk 1243 National City Boulevard, National City, CA 91950-4397 (619) 336-4226 June 15, 2006 Philip E. Mossy, President Mossy Nissan, Inc. 4555 Mission Bay Drive San Diego, CA 92109 Project: National City — Lease 922 West 23rtl St Parking Lot. Dear Mr. Mossy: On April 4, 2006, the City Council of the City of National City adopted Resolution No. 2006 - 66, executing a lease agreement City and Mossy Nissan, Inc. We are pleased to enclose one fully executed original contract and copy of the Resolution for your records. Sincerely, Michael R."Dalla City Clerk MRD Enclosure cc: CDC File 1001-1-2 passed and between the one certified Recycled Paper