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HomeMy WebLinkAbout2006 CON CDC Frank Motors - Lease Train DepotLEASE AGREEMENT By and between the COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY and FRANK MOTORS, INCORPORATED This Lease made and entered into this 3rd day of October 2006 by and between the Community Development Commission of the City of National City ("CDC"), hereinafter designated as "Lessor," and Frank Motors 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 southern portion of the parking lot (all real property 185 feet north of southern property boundary) located at 922 West 23111 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 922 West 2314 Street, otherwise known as the National City Train 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 six (6) 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. eLessee to initial here 7' ilc ate 4. Rent. Lessee shall pay as rent for the leased premises ten ($.12) cents per square foot for approximately 15,500 square feet of space, or One Thousand Eight Hundred Sixty and 00/100 Dollars ($1,860.00) per month for the term of this lease, payable on the 1st 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: Executive Director Community Development Commission of the City of National City 1243 National City Boulevard National City, CA 91950-4397 Frank Motors Inc. Attention: James Fomaca, President 2400 National City Boulevard National City, CA 91950 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. 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. 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, employees and agents 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 term, 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 approves (permit) 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 Vehicle Storage lease upon thirty (30) days written notice to Lessee in the event Lessor determines the leased Vehicle Storage 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 Vehicle Storage, and Lessee shall limit all of its claims for damages against Lessor to require Lessor's good faith assistance in relocating the Vehicle Storage. The burden of securing adequate Vehicle Storage, 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 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 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"). Leassee 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. 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. Page 4 of 5 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, 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 Frank Motors, Inc., has caused this instrument to be executed by its proper representatives thereon to duly authorized. Community Development Commission Of the City of National City By: APPROVED AS TO FORM: By: f /) George Eiser, III, CDC Attorney Frank Motors, Incorporated Page 5 of 5 Exhibit "A" i x w 09-I8-'06 13:39 FROM- T-206 P1M27QQ2 F-767 'CORD CERTIFICATE OF LIABILITY INSURANCE D NM >Iz OP I-4 DATE IMwODKYYY)02/22/06 PRODUCER Murria 6 Frick Inouronce 380 Stevens Ave. , First Floor Solana Beach CA 52075 Phone: 858-259-5800 Sax :858-259-6069 THIS CERTIFICATE 18 ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. • INSURERS AFFORDING COVERAGE NAM* INSURED Frank Motor's, Inc. Frank Motors -Tinto rank Motors if dai 400 National CAty1Blvd. NatiD(suaoR INSURER A[ :lea Sampan lam ialaDanCm Ca. IMSURER& Zonitb_ Insurance INSURER c; Federal. insurance Company INSURER ID: Undarwritors at Lloyds E: THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN. THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICI, S. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. LTN NUR° TYPE OF INSURANCEM POLICY NUBER DALfTE L EMM/OD/YTI • ATE IMNI/D'j 1 LIMITS X GENERAL LIABIUTY COMMERCIAL GENERAL LIABILITY An �\Q. V/x` EACH OCCURRENCE 3 OAMAUC HAVEN PREMISES (Es O1NN1o1J $ CLAIMS MADE OCCUR MeO EYR (Any arm paranrt) $ PERSONAL $ ADS INJURY $ OENERALAO0RECATE i GEN'L AGGREGATE LIMB APPLIES PER: PRODUCTS- COAT/DP AGO $ -1 POLICY 1 1 PecT LOC AUTOMOBILE LUHILIT Y ANY AUTO ALL OWNED AUTOS SCHEDULED AUTOS HIRED AUTOS NONAWNEDAUTOS ` \ O v� `` VVVV .\C' COMBINED SINGLE LIMIT (E4 EecieNA1) E —r BOOBY BDDILY INJURY parson) $ BODILY INJURY (Pei ectldenp = PROPERTY DAMAGE (Par wMdanl) E A 6ARAOE LIABILITY ANY AUTO 017JC06553151 09/30/05 09/30/06 AUTO ONLY - EA ACCIDENT $ 1000000 OTHERTHAM EAAcc s 1000000 H AuTOONm AGO s 31700000 C EXCEEBryMYRELLALIABILITY 79423850 09/30/05 09/30/06 EACH OCCURRENCE 6 9,000,000 X IDCcuR QCLAImsMACE AGGREGATE $9,000,000 _ RETENTION $ s s HDEDUCTIBLE t B INDEXERS COMPENSATION AND EMCLOYiRe'LIABAITv OFFICER MEEMBER EXCLUDED4 ECUTa/E R yyElt AL PR O UMOI DPEEU\L CROV161ONB baton Z046347404 07/01/05 07/01/06 X TOY LIM sI ER E.L,EACHACCIDEHT $1,000,000 E 1 , 000 , 0 00 e.L. DISEASE • EA EMPLOYEE E.L. DISEASE . POLICY LIMIT E 1 000 , 0 00 t D D OTHER Auto Physical Dmq Auto PD recess ADPD0117/05 A9P130117/Q5X$ 09/30/05 09/30/05 09/30/06 09/30/06 5CECR[PTN)N or OPERATIONS l LOCATIONS / VESICLES / BXCLYS/0NS ADDED ET ENDORSEMENT / DPEGIAL PROV161OMO * 10 days for non-payment of premium. Community DsVOlCpment Commission of the City of National City, the City or National City, and their officers, agents, and employees are liated an additional insureds. Re: 720 Neat 23rd Street, National City, CA. • CERTIFICATE MOLDER CANCELLATION COMILUNI Community Development Comma,aaion of National, City 1243 National City Blvd National City CA 91950-4397 B CORD 25 (29D1108) DHDDLD ANY or The ABOVE °ERMINED POLICIES SE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE PAWING INSURER WILL ENDEAVOR TO MAN. 30* OATS WRITTEN NOTICE TO THE OCRTIMCATE HOLDER NAMED TO THE LEFT, NUT FAILURC TO DO SO SHALL IMPOSE NO ONLIOATION OR LIAEIUTY OF MIT KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVES. 9 ACORD CORPORATION i$ 8 09/18/2006 MON 13:44 [JOB NO. 7759] fl002 RESOLUTION NO. 2006 — 219 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY AUTHORIZING THE CHAIRMAN TO EXECUTE A LEASE AGREEMENT WITH FRANK MOTORS, INCORPORATED FOR USE OF THE SOUTHERN PORTION OF THE NATIONAL CITY TRAIN DEPOT PARKING LOT LOCATED AT 922 WEST 23RD STREET FOR VEHICLE STORAGE ON A SHORT-TERM BASIS WHEREAS, the Community Development Commission (CDC) 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 CDC desires to facilitate redevelopment of the Marina Gateway sites in the National City Harbor District; and WHEREAS, Frank Motors, 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 Agreement; and WHEREAS, Lease revenue will provide funding for on -going redevelopment activities to assist in the elimination of blight; and WHEREAS, on October 3, 2006, the CDC 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 a Lease Agreement with Frank Motors, Incorporated for the use of the southern portion of the National City Train Depot site in consideration of fair market value. Said Lease Agreement is on file in the office of the City Clerk. PASSED and ADOPTED this 3rd day of October, 2006. ATTEST: Chris apat cretary Nick Inz nz hairman APPROVED AS TO FORM: George H. iser, III Legal Counsel Passed and adopted by the Community Development Commission of National City, California, on October 3, 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 Co unity Development Commission SecretarCommu it Development Commission By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2006-219 of the Community Development Commission of the City of National City, California, passed and adopted on October 3, 2006. Secretary Community Development Commission By: Deputy City of National City, California COMMUNITY DEVELOPMENT COMMISSION AGENDA STATEMENT MEETING DATE October 3, 2006 AGENDA ITEM NO 34 ITEM TITLE Resolution — APPROVING A LEASE WITH FRANK MOTORS INCORPORATED TO USE THE SOUTHERN PORTION OF THE NATIONAL CITY TRAIN DEPOT PARKING LOT (922 WEST 23RD STREET) FOR VEHICLE STORAGE AS A SHORT-TERM USE AND AUTHORIZING THE CHATRMAN T() RXF,CTITF THE TEASE. PREPARED BY DEPARTMENT CDC Staff Community Development Commission x4250 EXPLANATION The southern portion of the Train Depot parking lot is underutilized at this time. Prior to expanded activities at the Train Depot site, staff proposes leasing the southern parking lot to Frank Motors Inc. for up to six (6) months as short-term vehicle storage. Frank Motors Inc. currently leases a site two blocks away at the northeast corner of Bay Marina Drive and Cleveland Avenue (former Ace Metals property) for the same use. However, the Ace Metals site will undergo environmental remediati.on for soil contamination requiring Frank Motors Inc. to vacate the Ace Metals property. The National City Community Development Commission ("CDC") will realize additional revenue that will be used to promote redevelopment objectives in the National City Redevelopment Project Area and the City of National City may realize additional sales tax revenue from Frank Motors Inc. having improved local inventories. Environmental Review The proposed agreement is exempt from CEQA review. Financial Statement There are no costs to the CDC for entering into the lease. Rental for vehicle storage will be $1,860 per month, which will be used to facilitate on -going redevelopment activities. Frank Motors Inc. will be responsible for any improvements and maintenance of the premises. The CDC purchased the property in 1995 for $1,200,000 primarily with grant funding. Account No. STAFF RECOMMENDATION Adopt resolution authorizing the Chairman to execute the lease. BOARD / COMMISSION RECOMMENDATION None. ATTACHMENTS 1. Lease Agreement Resolution No. 00 A-200 (9/80) RESOLUTION NO. 2006 — RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY AUTHORIZING THE CHAIRMAN TO EXECUTE A LEASE AGREEMENT WITH FRANK MOTORS, INCORPORATED FOR USE OF THE SOUTHERN PORTION OF THE NATIONAL CITY TRAIN DEPOT PARKING LOT LOCATED AT 922 WEST 23RD STREET FOR VEHICLE STORAGE ON A SHORT-TERM BASIS WHEREAS, the Community Development Commission (CDC) 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 CDC desires to facilitate redevelopment of the Marina Gateway sites in the National City Harbor District; and WHEREAS, Frank Motors, 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 Agreement; and WHEREAS, Lease revenue will provide funding for on -going redevelopment activities to assist in the elimination of blight; and WHEREAS, on October 3, 2006, the CDC 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 a Lease Agreement with Frank Motors, Incorporated for the use of the southern portion of the National City Train Depot site in consideration of fair market value. Said Lease Agreement is on file in the office of the City Clerk. PASSED and ADOPTED this 3rd day of October, 2006. ATTEST: Chris Zapata, Secretary Nick Inzunza, Chairman APPROVED AS TO FORM: George H. Eiser, III Legal Counsel LEASE AGREEMENT By and between the COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY and FRANK MOTORS, INCORPORATED This Lease made and entered into this 3rd day of October 2006 by and between the Community Development Commission of the City of National City ("CDC"), hereinafter designated as "Lessor," and Frank Motors 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 southern portion of the parking lot (all real property 185 feet north of southern property boundary) located at 922 West 231"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 situa ed in the City of National City, County of San Diego, State of California, commonly described as western portion of the lot located at 922 West 23`1 Street, otherwise known as the National City Train 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 six (6) 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 9 (Qt t date 4. Rent. Lessee shall pay as rent for the leased premises ten ($.12) cents per square foot for approximately 15,500 square feet of space, or One Thousand Eight Hundred Sixty and 00/100 Dollars ($1,860.00) per month for the term of this lease, payable on the 15t 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: Executive Director Community Development Commission of the City of National City 1243 National City Boulevard National City, CA 91950-4397 Frank Motors Inc. Attention: James Fornaca, President 2400 National City Boulevard National City, CA 91950 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. 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. 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, employees and agents 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 term, 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 approves (permit) 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 Vehicle Storage lease upon thirty (30) days written notice to Lessee in the event Lessor determines the leased Vehicle Storage 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 Vehicle Storage, and Lessee shall limit all of its claims for damages against Lessor to require Lessor's good faith assistance in relocating the Vehicle Storage. The burden of securing adequate Vehicle Storage, 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 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 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"). Leassee 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. 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. Page 4 of 5 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, 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 T Anse 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 Frank Motors, Inc., has caused this instrument to be executed by its proper representatives thereon to duly authorized. Community Development Commission Frank Motors, Incorporated Of the City of National City By: Nick Inzunza, Chairman APPROVED AS TO FORM: By: George Eiser, 111, CDC Attorney Page 5 of 5 SDERA OUTDOOR STORAGE VEHICLE STORAGE FRANK MOTORS Exhibit "A" MOTIVATIONAL SYSTEMS INC. MOTIVATIONAL SYSTEMS INC. 23RD STREET TRAIN DEPOT ACCESS REMAINING HANDICAPPED PARKING OLSON NEW FENCE FRANK MOTORS ACCESS DEVELOPMENT BAY MARINA DRIVE MARINA GATEWAY HOTEL DEVELOPMENT EXHIBIT "B" ,," City of National City Office of the City Clerk 1243 National City Boulevard. National City, CA 919 97 Michael R. Dalla, CMG - City Clerk (619) 336-4228 Fax: (619) 336-4229 October 10, 2006 Mr. James Fornaca, President Frank Motors, Inc 2400 National City Boulevard National City, CA 91950 Project: National City — Lease Agreement for Use of the Southern Portion of •the National City Train Depot Parking Lot. Resolution No 2006- 219 Dear Mr. Fornaca: On October 3, 2006, the City Connell of the City of National City passed and adopted Resolution No. 2006.- 219 executing a tease agreement between Frank Motors, Incorporated and the City of National City, We are pleased to enclose one fully executed original agreement ancl one certified copy of the Resolution for your records. Should you have any questions, please contact Mr. Brad Raulston, Executive Director, Community Development Commission, at (619) 336-4250. Sincerely, 4 Michael R. Della City Clerk MRD Enclosure cc: CDC File C2006-54