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HomeMy WebLinkAbout2007 CON CDC MRW Group, Inc. - Office SpaceLEASE 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 , 2007 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. Lessee is desirous of leasing from Lessor, and Lessor is desirous of leasing to Lessee, for the benefit of the Marina Gateway Hotel and Commercial Project, in which, per the Disposition and Development Agreement, MRW Group, Inc. is the managing member. C. 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: A. OFFICE SPACE: 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 23`d Street, otherwise known as the National City Depot. 2. Term. The term of this lease shall be for a period of one (1) year, beginning on the date first above written, unless sooner terminated as provided herein, with an option to the Lessee to renew for two (2) additional six (6) month terms. Pagc 1 of 5 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 by April 12, 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. GENERAL PROVISIONS APPLICABLE TO OFFICE SPACE 1. LEGAL STATUS OF OPERATOR: Operator warrants that it is a legal corporation, incorporated under the laws of the State of Nevada. 2. 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. 3. Improvements. The property contains office space and Parking Premises. 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. 4. Common areas and Utilities. Exhibit A, 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. 5. 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. 6. 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. 7. 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 2of 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. 5. 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. 6. 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, or failure to comply with terms of this Lease. 7. 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 Page 3 of 5 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. 8. 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. 9. 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. 10. 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. 11. Termination by Lessor. Notwithstanding any other provision of this lease to the contrary, Lessor may terminate the office portion of this lease without penalty upon thirty (30) days written notice to Lessee in the event Lessor determines the leased premises are needed for public, municipal, or redevelopment purposes. Signature Page to Follow Page 4 of 5 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 authorized. Community Development Commission MRW GRO P, INC. Of the Cityf National City By: Ron Morrison, Char an "tichael R. Weber, President APPROVED AS TO FORM: By: % %.) �da.A- ,tEF George Eiser, III, CDC Attorney Page 5of5 Ivar Leetma, Chief Operating Officer RESOLUTION NO. 2007 — 52 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY AUTHORIZING THE CHAIRMAN TO EXECUTE AN AGREEMENT WITH MRW GROUP, INC. TO LEASE OFFICE SPACE AT THE NATIONAL CITY DEPOT WHILE WORKING ON THE MARINA GATEWAY HOTEL AND COMMERCIAL REDEVELOPMENT PROJECT WHEREAS, on May 18, 2004, Community Development Commission of the City of National City (CDC) approved a Disposition and Development Agreement with MRW, Inc., to develop the Marina Gateway Hotel and Commercial Redevelopment Project; and WHEREAS, MRW, Inc. is the managing partner of the Marina Gateway Development Company, LLC; and WHEREAS, to be in close proximity to the project, on May 18, 2004, MRW, Inc. leased the corner office of the second floor of the National City Depot located at 922 West 23rd Street, at the cost of $100 a month. Said lease Agreement expires April 11, 2007; and WHEREAS, the CDC and MRW Group, Inc. desire to execute a Lease Agreement for said office space for a term of one year, which will expire on April 11, 2008. NOW, THEREFORE, BE IT RESOLVED that the Community Development Commission of National City hereby authorizes the Chairman to execute a Lease Agreement with MRW Group, Inc. for the corner office of the second floor of the National City Depot located at 922 West 23rd Street, at the cost of $100 a month, from April 12, 2007 to April 11, 2008. Said Lease Agreement in on the in the office of the City Clerk. PASSED and ADOPTED this 20th day of March, 2 n Morrl§on, C airman - ATTEST: Brad Ram •,,s$? etary APPROVED AS TO FORM: io 7�vt,. ac George H. Eiser, III Legal Counsel Passed and adopted by the Community Development Commission of the City of National City, California, on March 20, 2007, by the following vote, to -wit: Ayes: Commissioners Morrison, Natividad, Parra, Ungab, Zarate. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: RON MORRISON Chairman, Community Development Commission Secretary( Development Commission By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2007-52 of the Community Development Commission of the City of National City, Califomia, passed and adopted on March 20, 2007. Secretary, Community Development Commission By: Deputy City of National City, California COMMUNITY DEVELOPMENT COMMISSION AGENDA STATEMENT MEETING DATE March 20, 2007 AGENDA ITEM NO. 26 ITEM TITLE Resolution of the Community Development Commission authorizing the Chairman to execute a one year lease with MRW GROUP, INC. for office space at the National City Depot located at 922 West 23rd Street PREPARED BY Colby Young (Ext. 4297) Redevelopment Intern DEPARTMENT Community Development Commiss EXPLANATION MRW Group Incorporated, developer of Marina Gateway Hotel and Commercial Project seeks to renew their lease for the office they currently occupy, located in close proximity to the project site. The CDC wishes to rent the southwest comer 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 space to MRW Group Incorporated. Providing the developer with working office space close to the project site will expedite the development process. The term of the lease is for one year with the option to renew for two additional six month leases. Environmental Review Not applicable. Financial Statement MRW GROUP, INC. shall pay one hundred dollars ($100) per month for the term of this lease, prepaid at the beginning of each month. Account No STAFF RECOMMENDATION Adopt the resolution. BOARD / COMMISSION RECOMMENDATION Not applicable. ATTACHMENTS 1. Proposed lease with MRW Group, Inc. ^ °0°' - a Resolution No. 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 12u' day of April , 2007 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, Califomia, (Office Space) for the purpose of providing one office working space. B. Lessee is desirous of leasing from Lessor, and Lessor is desirous of leasing to Lessee, for the benefit of the Marina Gateway Hotel and Commercial Project, in which, per the Disposition and Development Agreement, MRW Group, Inc. is the managing member. C. 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: A. OFFICE SPACE: 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 comer office of the second floor located at 922 West 23rd Street, otherwise known as the National City Depot. 2. Term. The term of this lease shall be for a period of one (1) year, beginning on the date first above written, unless sooner terminated as provided herein, with an option to the Lessee to renew for two (2) additional six (6) month terms. Page 1 of 5 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 by April 12, 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. GENERAL PROVISIONS APPLICABLE TO OFFICE SPACE 1. LEGAL STATUS OF OPERATOR: Operator warrants that it is a legal corporation, incorporated under the Taws of the State of Nevada. 2. 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. 3. Improvements. The property contains office space and Parking Premises. 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. 4. Common areas and Utilities. Exhibit A, 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. 5. 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. 6. 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. 7. 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 Toss 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. 5. 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. 6. 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, or failure to comply with terms of this Lease. 7. 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 Page 3 of 5 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. 8. 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. 9. 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. 10. 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. 11. Termination by Lessor. Notwithstanding any other provision of this lease to the contrary, Lessor may terminate the office portion of this lease without penalty upon thirty (30) days written notice to Lessee in the event Lessor determines the leased premises are needed for public, municipal, or redevelopment purposes. Signature Page to Follow Page 4 of 5 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 authorized. Community Development Commission MRW GRO P, INC. Of the City of National City By: Ron Morrison, Chairman APPROVED AS TO FORM: By: George Eiser, III, CDC Attorney Page 5 of 5 Bv: 1IiI(1A �� ichael R. Weber, President Ivar Leetma, Chief Operating Officer RESOLUTION NO. 2007 — RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY AUTHORIZING THE CHAIRMAN TO EXECUTE AN AGREEMENT WITH MRW GROUP, INC. TO LEASE OFFICE SPACE AT THE NATIONAL CITY DEPOT WHILE WORKING ON THE MARINA GATEWAY HOTEL AND COMMERCIAL REDEVELOPMENT PROJECT WHEREAS, on May 18, 2004, Community Development Commission of the City of National City (CDC) approved a Disposition and Development Agreement with MRW, Inc., to develop the Marina Gateway Hotel and Commercial Redevelopment Project; and WHEREAS, MRW, Inc. is the managing partner of the Marina Gateway Development Company, LLC; and WHEREAS, to be in close proximity to the project, on May 18, 2004, MRW, Inc. leased the corner office of the second floor of the National City Depot located at 922 West 23rd Street, at the cost of $100 a month. Said lease Agreement expires April 11, 2007; and WHEREAS, the CDC and MRW Group, Inc. desire to execute a Lease Agreement for said office space for a term of one year, which will expire on April 11, 2008. NOW, THEREFORE, BE IT RESOLVED that the Community Development Commission of National City hereby authorizes the Chairman to execute a Lease Agreement with MRW Group, Inc. for the corner office of the second floor of the National City Depot located at 922 West 23rd Street, at the cost of $100 a month, from April 12, 2007 to April 11, 2008. Said Lease Agreement in on file in the office of the City Clerk. PASSED AND ADOPTED this 20th day of March, 2007. Ron Morrison, Chairman ATTEST: Brad Raulston, Secretary APPROVED AS TO FORM: George H. Eiser, III Legal Counsel City of National City Office of the City Clerk 1243 National City Boulevard, National City, CA 91950-4397 Michael R. Delia, CMC - City Clerk (619) 336-4228 Fax: (619) 336-4229 March 27, 2007 Mr. Michael Weber President MRW Group, Inc. Historic Train Depot 922 West 23rd Street, Suite 200 National City, CA 91950 Dear Mr. Weber, On March 20, 2007, Resolution No. 2007-52 was passed and adopted by the Community Development Commission of National City, authorizing execution of a lease agreement with MRW Group, Inc. We are enclosing for your records a certified copy of the above Resolution and a fully executed original lease agreement. Sincerely, Michael R. Della, CMC City Clerk Enclosures cc: Community Development Commission ® Recycles Paper