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HomeMy WebLinkAbout2007 CON CDC Frank Motors, Inc. - Amendment Lease AgreementAMENDMENT TO LEASE AGREEMENT BETWEEN THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY NATIONAL CITY AND FRANK MOTORS, INCORPORATED This Amendment, effective as of May 15, 2007, is made by and among the COMMUNITY DEVELOPMENT COMMISSION OF NATIONAL CITY ("LESSOR"), a community development commission and FRANK MOTORS, INCORPORATED, a California corporation ("T.ESSEE"). RECITALS A. On October 3, 2006, the Lessor and Lessee entered into a Lease Agreement ("AGREEMENT") for vehicle storage use on the real property located at 922 West 23`d Street in National City, CA, otherwise known as the National City Train Depot and whose legal description is attached to Agreement. B. Lessor and Lessee desire to extend the Agreement to allow Lessee an adequate period of time to seek an alternative means for vehicle storage once the Lessor exercises its right to terminate said Agreement. AGREEMENT NOW THEREFORE, the parties agree to amend the Agreement as follows: 1. Recitals. The forgoing recitals are true and correct and are incorporated herein by this reference. 2. Term. Section B3 on Page 1 of the Agreement is amended in its entirety to read as follows: 3. Term. The term of this Agreement shall be ninety (90) beginning on the executed date of this Agreement. Lessee acknowledges that the use of the site is temporary and agrees to diligently seek an alternative means for vehicle storage once the CDC exercises its right to terminate said Agreement. 3. No Other Modifications; Amendment Controls. Except as modified by this Amendment, the terms and conditions of the Agreement remain unchanged and in full force and effect. In the event of a conflict in the terms and conditions of the Agreement and this Amendment, the teens and conditions of this Amendment shall control. All references to the Agreement in any document shall he deemed to mean the Agreement as herein modified. Page 1of2 Amendment to Agreement IN WITNESS WHEREOF, this Amendment is executed by the parties, intending to be legally bound, as of the date first written above. Community Development Commission Of the City of National City By:_ Ron Morrison, Chairman APPROVED AS TO FORM: By: --4164:— George Eiser, III, CDC Attorney Frank Motors, Incorporated By: Page 2 of 2 Amendment to Agreement ?fie- ca, President General Manager RESOLUTION NO. 2007 — 105 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY APPROVING AN AMENDMENT TO THE LEASE AGREEMENT BETWEEN FRANK MOTORS, INC. AND THE COMMUNITY DEVELOPMENT COMMISSION OF NATIONAL CITY FOR REAL PROPERTY LOCATED AT 922 WEST 23RD STREET WHEREAS, on October 3, 2006, Frank Motors and the Community Development Commission of the City of National City ("CDC") entered into a Lease Agreement for vehicle storage use on the CDC -owned parcel located at 922 West 23`d Street in National City; and WHEREAS, Frank Motors and the CDC desire to extend the Agreement to allow Frank Motors an adequate period of time to seek an altemative means for vehicle storage once the CDC exercises its right to terminate said Agreement; and WHEREAS, the term of the Amendment shall be ninety (90) days beginning on the executed date of the Amendment. NOW, THEREFORE, BE IT RESOLVED that the Community Development Commission of the City of National City hereby approves an Amendment to the Lease Agreement between Frank Motors and the CDC for real property located at 922 West 23`d Street in National City. Said Agreement in on file in the office of the City Clerk. PASSED and ADOPTED this 15th day of May, 20, Morrison, Chairman ATTEST: APPROVED AS TO FORM: Jo 1 George H.-Eiser, I11 Legal Counsel Passed and adopted by the Community Development Commission of the City of National City, California, on May 15, 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, ,,�;!r evelopment Commission By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2007-105 of the Community Development Commission of the City of National City, California, passed and adopted on May 15, 2007. Secretary, Community Development Commission By: Deputy City of National City, California COMMUNITY DEVELOPMENT COMMISSION AGENDA STATEMENT MEETING DATE May 15 2007 AGENDA ITEM NO 27 ITEM TITLE Resolution approving an Amendment to the Lease Agreement between Frank Motors, Incorporated and the Community Development Commission (CDC) of National City for real property located at 922 West 23rd Street in National City, CA, and authorizing the Chairman to execute said Agreement. PREPARED BY Xavier Del Valle Senior Project Manager DEPARTMENT ?�� Community Development Commission EXPLANATION On October 3, 2006, Frank Motors and the CDC entered into a Lease Agreement for vehicle storage use on the CDC -owned parcel located at 922 West 23rd Street in National City, CA, otherwise known as the National City Train Depot. Frank Motors and the CDC desire to extend the Agreement to allow Frank Motors an adequate period of time to seek an alternative means for vehicle storage once the CDC exercises its right to tenninate said Agreement. The term of the proposed Amendment shall be ninety (90) days beginning on the executed date of the Amendment. Rent for the leased premises shall not change from the Agreement that was entered into by both parties on October 3, 2006. Per the Agreement, Frank Motors shall pay the CDC rent in the amount of $1,860 per month for approximately 1 5,500-sfof space. Environmental Review The proposed Agreement is exempt from CEQA review. Financial Statement Frank Motors shall pay the CDC rent in the amount of $1,860 per month for approximately 15,500-sf of space. The rent shall be payable on the 1" of each month beginning on the executed dated of the Agreement. STAFF RECOMMENDATION Adopt resolution approving an Amendment to the Lease Agreement between Frank Motors, Incorporated and the Community Development Commission (CDC) of National City for real property located at 922 West 23`d Street in National City, CA, and authorizing the Chairman to execute said Agreement BOARD / COMMISSION RECOMMENDATION N/A ATTACHMENTS 1. Resolution 2. Amendment to Lease Agreement 3. Lease Agreement (October 3, 2006) Resolution No. `C' o ° ' t o 5 A-200 (9/80) AMENDMENT TO LEASE AGREEMENT BETWEEN THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY NATIONAL CITY AND FRANK MOTORS, INCORPORATED This Amendment, effective as of May 15, 2007, is made by and among the COMMUNITY DEVELOPMENT COMMISSION OF NATIONAL CITY ("LESSOR"), a community development commission and FRANK MOTORS, INCORPORATED, a California corporation ("LESSEE"). RECITALS A. On October 3, 2006, the Lessor and Lessee entered into a Lease Agreement ("AGREEMENT") for vehicle storage use on the real property located at 922 West 23rd Street in National City, CA, otherwise known as the National City Train Depot and whose legal description is attached to Agreement. B. Lessor and Lessee desire to extend the Agreement to allow Lessee an adequate period of time to seek an alternative means for vehicle storage once the Lessor exercises its right to terminate said Agreement. AGREEMENT NOW THEREFORE, the parties agree to amend the Agreement as follows: 1. Recitals. The forgoing recitals are true and correct and are incorporated herein by this reference. 2. "rum. Section B3 on Page 1 of the Agreement is amended in its entirety to read as follows: 3. Term. The term of this Agreement shall be ninety (90) beginning on the executed date of this Agreement. Lessee acknowledges that the use of the site is temporary and agrees to diligently seek an alternative means for vehicle storage once the CDC exercises its right to terminate said Agreement. 3. No Other Modifications; Amendment Controls. Except as modified by this Amendment, the terms and conditions of the Agreement remain unchanged and in full force and effect. In the event of a conflict in the terms and conditions of the Agreement and this Amendment, the terms and conditions of this Amendment shall control. All references to the Agreement in any document shall be deemed to mean the Agreement as herein modified. Page 1 of 2 Amendment to Agreement IN WITNESS WHEREOF, this Amendment is executed by the parties, intending to be legally bound, as of the date first writtcn above. Community Development Commission Frank Motors, Incorporated Of the City of National City By: By: Ron Morrison, Chairman J • - Forn : a, President APPROVED AS TO FORM: By: George Eiser, III, CDC Attorney Page 2 of 2 Amendment to Agreement General Manager 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 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 922 West 23nd Street, otherwise known as the National City Train Depot site and whose legal description is attached hereto as Exhibit "B." 3. Term. The tenn 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. �D .{� Lessee to initial here -/1 iql 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 1' 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 trailed 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 G. Use. The above -described premises are leased to Lessee by Lessor for the purpose of providing vehicle storage. 7. Assigrunent. 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. l0. 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 lxxlily 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 1 pose. If Lessee does not keep an insurance policy in full force and effect at all times during the tenn of this Lease, Lessor may elect to treat the failure to maintain the requisite insurance as a breach of the contract and tenninate 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 1 P,ase 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 inay 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 properly. Page 3of5 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"). Lcassee 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 teen of this lease, Lessee expressly agrees that the indemnification, and hold harmless obligations assumed by Lessee with regard to abatetnent 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: .,110 .. Nic r�1*�:amnan APPROVED AS TO FORM: By: George Fiser, Ill, CDC Attorney Frank Motors, Incorporated By By: Page 5 of 5 Ro President (' ry enell' Ge "' al Manager i RAIL LINE SDERA OUTDOOR STORAGE z0 1-w 0 Exhibit "A" MOTIVATIONAL SYSTEMS INC. i 23RD STREET TRAIN DEPOT ACCESS REMAINING HANDICAPPED PARKING VEHICLE OLSON STORAGE FRANK MOTORS NEW FENCE FRANK MOTORS ACCESS • DEVELOPMENT BAY MARINA DRIVE MARINA GATEWAY HOTEL DEVELOPMENT WOW . inAtotip, • .-_THERt „ ---,TitTE9.059,1,117:Xcf!'1. io PRN * • DB SANA RIGBTSBY• :44 OF ThF SUR}ACE OF . . ` SA lifi.icoV X • . . RESOLUTION NO. 2007 — 105 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY APPROVING AN AMENDMENT TO THE LEASE AGREEMENT BETWEEN FRANK MOTORS, INC. AND THE COMMUNITY DEVELOPMENT COMMISSION OF NATIONAL CITY FOR REAL PROPERTY LOCATED AT 922 WEST 23RD STREET WHEREAS, on October 3, 2006, Frank Motors and the Community Development Commission of the City of National City ("CDC") entered into a Lease Agreement for vehicle storage use on the CDC -owned parcel located at 922 West 23`d Street in National City; and WHEREAS, Frank Motors and the CDC desire to extend the Agreement to allow Frank Motors an adequate period of time to seek an altemative means for vehicle storage once the CDC exercises its right to terminate said Agreement; and WHEREAS, the term of the Amendment shall be ninety (90) days beginning on the executed date of the Amendment. NOW, THEREFORE, BE IT RESOLVED that the Community Development Commission of the City of National City hereby approves an Amendment to the Lease Agreement between Frank Motors and the CDC for real property located at 922 West 23`d Street in National City. Said Agreement in on file in the office of the City Clerk. PASSED and ADOPTED this 15th day of May, 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. Della, CMC - City Clerk (619) 336-4228 Fax: (619) 336-4229 May 22, 2007 Mr. James Fornaca Frank Motors, Inc. 2400 National City Blvd. National City, CA 91950 Dear Mr. Fomaca, On May 15, 2007, Resolution No. 2007-105 was passed and adopted by the Community Development Commission of National City, approving amendment to lease agreement with Frank Motors, Inc. We are enclosing for your records a certified copy of the above Resolution and a fully executed original lease agreement. Sincerely, 'Vop. Michael R. Dalla, CMC City Clerk Enclosure cc: Community Development Commission ® Recycled Paper