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HomeMy WebLinkAbout0140.091February 7, 1991 HONORABLE CITY COUNCIL Palo Alto, California 7 U!!-1lW! LEME 07 '1'IIE PALO ALTO LA1!!! BOWL FACILITX TO 1'I!J p~ AL'1'O Ll\!rJI B9!!LB CLUB. iNC. Members of the council: Report ill Brier This report requests Council approval of a ten-year lease agreement between the Palo Alto Lawn Bowls Club, Inc. (Tenant) and the City of Palo Alto {Lessor) fo~ the Palo Alto Lawn Bowl facility at 474 Emoarcadero Road. Backqro~ On April 14, 1964, council approved the first ten-year lease with the Palo Alto Lawn Bowls Club for the lawn bowl facility located at .74 Embarcade~o Road. On January 14, 1974, Council approved a $30,000 eXpansion of the B<>vling Green Clubhouse. The pt'"oject was financed by three participating agencies: the city, Lucie stern Found,)tion, and the Bowling Club; each provided one-third of the project costs. On April 18, 1974, council approved a new ten-year lease for the lawn beNl facility .. si~ce 1984, due to the pending development of the adjacent Gamble property 'Which might ha ..... e affected the lawn bowl fa.cility, the City and. the Lawn Bo..,ls Club have entered into a series of one-year leases rather than a new ten-year lease. The Gamble leased site has ~ been established. "!:'he L-awn Bowls Club'S relationship with both the public and the City has continued to be very favorable. ~ccordingly, the club has requested & new ten-year lease. CMR: 140:91 • o Attached is a proposed ten-year lease. Attachment A summarizes the major lease provisions. Except for the tax provision, all provisions are substantially the same as in the p~evlous ten year lease. The tax provision in the attached lease requires the City rather than the tenant to pay the possessory interest tax assessed on the property. After discussions with the Lawn Bowls Club, they have agreed to pay the increase in liability insurance coveraqe required by the City, but because of their limited budget, staff p~oposes to fund the annual possessory interest tax of approxi­ mately $250.00. ~irona'Dt.l IMpact Asse .... A' This lease represents continued use of ;an existing facility; there~ore, it carri~s a Class r -existing facility exemption from requirements of CEQA. 'taff Raco .. endatioB Staff recommends that the Council authorize the Mayor tv executs the attached tQn-year lease with the Palo Alto Lawn Bowls Club, Inc. for the Palo Alto La~n Bowl facility at 494 Embarcadero Road. ReSPe.ctfully ~pbmitted, (",>,/ " /,//\ /~;'"r., .. ".17<;"--,- MARTHA £. ~E¥LzGRrNI Real Property Analyst 01l,uU1D IL"l HARHSON rector of F Y e Attachments: Attachment A Lease Agreement cc: Lester Briqqs -Palo Alto Lawn Bowls Club, Inc~ Paul Dias Director or Parks , Golf CHR: 140: 91 2 Leasor: PUrpos.: 1:'ara: aent; 1l&1nteD&nce aDd a.~ir:l COBstructioD and/or Alterat.ions: CI!R: 140: 91 LI!ASE SlJMl!AltY ?alo Alto LaWD 80wl. Club, rncorporated city of Pal~ ~lto P~lo Alto Lawn Bowls Club, Incorporated Palo Alto La.~ Bowl clubhouse Facility located at 474 Embarcadero Road. To provide for a general meeting place for tenant?s members for games and recreational activities. The term. is ten (10) years, commencinq the first day of the month following execution of the lease by the city. In consideration of Tenant's performing the follow­ ing services or providifjq the following public benefits on behalf of Lessor, Tenant shall not be required to pay rent: Tenant shall publicly en­ courage and offer membership in the Palo Alto Bowling Club to Palo Alto residents, provide lessons in lawn bowlinq to non-member residents and p40vide City and other Community groups access to Premises, subject to rules and regulations est~b­ lished by Director of Recreation~ Lessor shall be responsible for Maintenance and repair of the structure and main support systems~ Tenant sball be responsible for JIIaintaining the premises in a safe and sanitary condition and fo~ makinq minor repairs~ Any proposed construction or alteration must be apprOVed by Lessor. 1 otiliUu, I..a iqa inq. alllllettill9 ....s BDCUllberi.a; : CMR:HO:91 o Tenant shall pay for utilities supplied to the premises except tor yater~ wbich shall be paid by LeS8or~ Tenant shall provide st~ndard insurance coverage as required by Le.Bor. Tenant shall pay ill1 taxes and assessments {except possessory intere.t taxj which become due and payable upon the Pre~ises or upon fixtures, equip­ ment on other property installed or constructed upon the premises. Lessor-shall pay possessory interest tax. Assigning, subletting and encumbering of the lease are prohIbited. 2 Project: P.l~to lawn Bowlers Project Number: 1.LW~-90 Dr.ft Requested By: Marth. Pellegrini lEASE THIS LEASE is lOad. this day of • 1990 by and between the City of Palo ~lto ••• unicip~por.tfon (lESSOR). and Palo Alto la.n Sowls Club, lnc., a non-profft corporatfor. (f£NANT). R£CITMS ]. On Apr; 1 14. 1964, LESSOR and TENANT entered into , lease 'greement for TENAKT'S use of t~.t cert,fn building known as the P,lo Alto lawn Bowling Clubhouse located at 474 Embarcadero Road. PaTa Alto, California. 2. r. "ay, 1974, lfSSOR and TENANT entered into a lea .. agreement which peroitted continued ose of tne property until Harch 30. 1964. 3. On ",y 17, 1964, LESSOR and TENANT entered fnto , Ie ... agreement wIlich pereitt!d cont~nued use of the property until Harch 30. 1985. 4. On March 27. 1985 LESSOR and TENANT entered into' 1 .... which permitted continl1ed u.se of the property untn Marc" 30. 1987. 5. Since March 30. 1987 lESSOR and TE/iNn have agreed to • montn to month holdover of the lease, pending de'.elopment ().f the adjoining property (Gamble House). 6. LESSOR and TENAHT now desire to enter illto ;, new 12'ase which will permit continued us-e of the property until ________________ 1 2000. NOW, THEREFORE, in cQnsiderat'~n of these premises. the parties hereto mutually agre! as follows: I. PREMISES (RL 3.0} HS A. Subject to the terms and conditions set forth i. this a~reem.nt. LESSOR le.ses to TENANT that certain property (PREMISES) described and shown i. ·EXHIBIT B·. fXHIBIT B is attached to and. by this reference, .ade a part of this lease. \ \ B. It Is understood and agreed that supervision .Ad control of the are. outlf .. d by a ~roke. line on $Old <xhlbit S (hereln.fter 'bowling gr •• n') shall remain in LESSOR and that the use thereof shall not be if_fled to ~mb.r. of lESS[£ but shall extend to a., resident of LESSOR il confo~ance with rules Ind regulations whtch may he instituted from time t. time by LESSOR', Of recto. of Recr •• tion. II. PURPOSE (Rl 4.0} S The purpose of this Le.se i. t~ provide for. general meeting place f.r tenant's members for games and recreit;onal activities. [II. REQUIRED ANO Q?TIONAL SERVICES AND USES (Rl 5.0) I. furtherance of the purposes stated aboye, the following required and optlon.1 service. and .'.s shall be provided, permitted or prohibited. A. ~~ Servjce. and Uses. Throughout t~e term of this lea •• lE~HT shall provide the follOWing serv1ces and acti~itfes: 1. TEHANT shall with regularity publiclJ encourage and offer membersbip i. the Palo Alto lawn Ba.1ing Club to residEnts of LESSOR during the tena of this agreement. TEHANT .hall pro_Me lesson, i. lawn howling to non·memb.r residents of LrSSOR ot r.asonable times which "'Y be set by agreements between TENANT and the Cirector of Recr-ea.tioD. 2~ T£NANT shall, at its own cost and expense, conform in ever1 respect to all l~s, statutes. ordin3nces and regulatfons now'" force and that •• y be enacted here.fter affecting the us. or occup.ncy af the PREMISES. T[NAHT sh.ll use the PREMISES as • general meeting place for its members and for ~~S and recreational a(tiYitie5~ 3. TENANT agree, t ... ai.hi. i. H. by-laws the provision tbat LESSOR's Director of Recreation or.~is nominee shall be an ex-offiCio member of the TENANT's Soard of Directors, with full right to participate h the deHberat ions of Hie Board witho.ut the r~ght to vote~ 4. TEMANT .gr.e. that when the PREMIS£S are "at used for its no""al1y scheduled actlvities, the PREMlS£S ... , be made availibl. t. the City by LESSOR's Director of Rocr •• tlon or other community users subject to r.le. and regulations established by LESSOR's Director of Recreation .. 8. Optional Servlcts and Uses. Subject to the prior written approval of L£SSOR'. tity "iRaq_, or desIgnee, TENANT may >1so us. th_ PREMISES t. provfde add1tionzl services and uses ~hi'~ are antillir) to and c~.tibl. with the required uses. Approval of optional uses shall be withi. the sole discretion of LESSOR'. City "anagoT. 2 C. B!!1ricted Uses. The above listed se~ices and uses, botM required and optional. shall be the only s~ryjces and uses permitted upon or from the PREMISES. TEKANl agre.s not to uS! the PREMISES for allY other pur,.. .. nor to engage in. or per~it, any other busfness activity wlthiD or from the PREMISES. In the event that TENAHT should fall to use s.id PREMISES fQ~ the p~rpose herein created, then this lease shall tfnMinate at t~e option of the LESSOR. It is further understood and agreed that at all times during the term of this l,.se $Oid PREMISES shll be subj.ct to and under the gener.l supervision of the Cit, of Pilo Alto, either through its City Manager or its Director of Recre.tlon. IV. TERM (RL 6.0) S The term of this Lease shall be ten [10) ye.~., comencing ______ , 1990. ,. TERMINATION Of PRIOR AGREEMENTS (RL 6.1) S leis lease supersedes any and all p~ior Teases or aQ;eem~nts entered into by LESSOR for use of the PREMISES. All such prior leases or agreements o1re null and void. YI. OPTION TO EXTEND [RL 6.1) S TErtAHT shaH have the option til extend tMs lease tern for an .. ddltional five years if t~e following conditions have been satjsfie~: A. HNANT has, to the satisfactioo of lESSOR'S City Manager, faithfully performed eac~ and ever~ conditiDn of this lease thrDughout the primary lease tenm. LESSORtS City Manager's issessment of TENANT'S performance s~all be final and concl~s~~e and sha11 be based on infonnation received from LESSOR'S staff and others that my have knowl edge of TENANT'S performance; and B. TENAHT has submitted to LESSOR. written notice of TENANT'S intent to extend t~e lease in accordance with this clause, on or before 5 mont~s pri~r to the end of the Lea" term set forth in (l.use IV (TERM). LESSOR shall notify TENANT if its performance has not be.n acceptable In accordance wlt~ subparagraph A of t~is cla~se withln two montns of rec~ipt of TENANT'S notice of intent to extend this leas~. VII. CONSIDERATION/RENT (RL 7,2) S TENAHT shall perform the following services Dr provide the folTowing public benefits on behalf of LESSOR in consideration for the rent-free Lise of the PREMISES: I. TENANT s~.ll publicly encourage and offer ;nembershlp in the Palo Alto Bowlins Clob to reSidents of LESSOR. 3 • o o 2. TENANT s.hilH proylde lessons in hwn bowHng to non-member residents of lESSOR. 3. TENANT shall provide City and other Coao.nity groups acces. to PREMISES .s specIfied In subparagraph A of Claus. III (REQUIRED AND OPTIONAL SERVICES AND USES). VIII. RENEGOTIATlOH Of RENT (Rl 1.S), S 13 the event that TENANT change. or l.ses its status as , non·profit organ1ution , ttle above IIOnetuy cClllsideration shall, it LESSOR'S opUon, be reVised. effective upDn the date of such change in status, t~ reflect the fiir .arket rental of the PREMISES os det.noined by • mutually agreeable deSignated appri,iser. suc~ determination shan als.o include a ltechanism for subsequent rental adjustments to ke~p the lIuket rental current. Acceptance of any re'V'lsed rental ~ereunder shall not be deemed I watver of any provision of this lease~ specific,III Including but not limited to tne provision of ei.us. II (PURPOSE), Claus. [II (REQUIRED and OPTIONAL SERVICES and USES) and thuse YII (CONSIDERATlOHjREIfr) . Should USSOR and TENANT not agree on a designated appraiser,one shall be appointed by the presiding Judge of the Superior Court of Santa Clara County. IX. NOH·PROfIT COMMUNITY ORGANIZATION BYLAWS' MfMBERSHIP (Rl 1.6) !!etober;hlp 10 TENANT'S organl .. tlo" ,h.lI b. open to anyone meeH'g the requiretlents of its rules and bylaws. All restrictions. r;,les, bylaws, and fees., if any, and chang •• thereto proposed by TENANT shall, prior to being put ioto effect, be reviewed .nd .pproved by lESSOR'S City Nanager or his designee. Said rule., bylaws and fee schedules sh.ll be on file with lESSOR'S Real Property "an.ageT~ I. MAINTENANCE (Rl 14.0) S LESSOR shall be responsibTI!' fGf maintenance and repair of the structure located on the PREMlSES t and ~a;n support syst~s n~t exclusively serving the PRE~rS[S inc11Jding reof ~pair, electrical systell repair, exterior pa1nting and structural repairs. TeNANT express1y agrees to maintain the PREMISES In I safe, clean, wholesome. arId sanitary condition and substanthl repair, to the cOllli>lete satisfaction of lESSOR and I. coopliance wit~ all applicable laws. TENANT further agrees to provide approved containers for trash and garbige and t!) keep the PREMISES free and clear of I"1Jbblsh and 1 itter. lESSOR shall ha •• the rlgM to enter upon and insp.ct the PREMISES ot any tl,.. for cleanHne .. Ind safety. Notwit~standing the abo •• proYlslOns'iTENANT shall be responsibl. for damage or repair to PREMISES or any of it. support .yst .... resulting froe TEN.4KI'S use of the PREMISES and not occasioned by normal wear and tear. 1ncT~df"g plW!bing and glass breakage~ 4 '" .- • TENANT sh,ll design,te I. writing to LESSOR an on-site be responsible for tne day-to-day operation and cleanliness. a~ generil ord~r. representative who ,naIl Tellel of maintenance, ]f TENANT fafTs to maintain Dr make repilTs or replacements as requtred hereiD, LESSOR "'1 notify TENANT in "riting of said fiilure_ Should TENAIIT hi! to correct the $~t14atfa.n within I reasonable time thereafter, as establhhed by LESSOR'S City Manager Dr desfgnee, lfSSOR'S Real Property Manager may ~ake, or cause to be made. the r.ecessary correctfQns and the cost thereof, includ,ng but not li~ited to the cost of labor, materials, and equfpment and a 15% charge for admlohtration ."d overhead, shall be paid by TENAIIT within 10 days of receipt of • statement of s,ld cost from LESSOR'S Real Property Manager. LESSOR may also. at its opt1oi1, choose other remedies available here-it'l, or i'Vailable by law. 11. CONSTRUCTION AND/OR ALTERATION BY TENAnT {RL IS_I) S A. LfSSQRrs CQ~$ent. No structures, fmprovements, or facilities shall be constructed, erected~ altered, Dr made withfn the PREMISES without prior written consent of lESSOR'S City Council if required by City of P,lo Alto procedures or ordir,ances. or otherwise by lESSOR'S City Manager. AIIY conditions re1at~ng t<l the manner, metllDd. deSign) and construction of said structures, improvements, or facilities established by LESSOR shall be c~~djtions of this clause as thoug~ originally stated here;~. TENANT may. at any tia:t and It its sCile expense. install and place business fixtures and equipment withiA any building constructed by LESSOR, provided such fixt~res and fnsta11ation have been reviewed and approvEd by lESSOR'S CitJ Manager, 0' ~.signee. B. StrJct Compljance with Plans ilnd SDec!ftcations. An lr.1provements constructed by TENANT withi. the ?REMISES shall be constructed io an e-fftc1ent CI_nd worbtan1 ike manner and in strict compl i ance wit" deta; le<! plans and specifications approved by LESSOR'S City Council if required by City of Palo Alto procedures or o~inances or otherwise by LESSOR'S Cit] Hanager, Dr 4esignee, and. appllcable City of Palo Alto codes and ordinance'S .. c. ill1.ificate Of Inspection. Upon completion of cOilstruction of any building, TENANT shall submit to LESSOR'S Real Property Manager, , Certifica.te of Jnspectior'!, verifying that the construction ~a5 compTeted in confo~nce with Title 20 of the California ~iDistratiYe Code (or residential construction, or ir:l confonnance with Title Z4 of tne Caltforaia Administrative Code for non-residential construction. XII. DAMAGE TO OR 0E5TRUCTION Of IMPROVEMENTS (RL 15.4) NS A. Total Qestruction. IA the ev!nt the PR~ISfS or a $ubstantli1 portion thereof are destroyed by '01 cause that renders the PREMISES unfit for the purposes design,ted io Clouse III (REQUIRED & OPTIONAL USES), and if tne PREMISES are so badly d.maged tnat they cannot b. repaired withi. olnetl (!Ie) d,ys fro. the date of such damage, either party may ten.inate thfs Leile by giving to the other party written notice wlt~in te. (10) diY. of the occurrence of such damage. S • o o B. Insured Parthl Destruct jon. If the PRE1USES are ~.rt;aJJl destroyed by any cause i"surable under fire insurance with il standard extended coverage (Isualty endorseaent and the destroyed portfon can be rebuilt Dr repaired within 90 day, frON the date of de,truetion, LESSOR .hall repair the dimago or de.tructton with reasunable diligence. In such event, this Leise s~ll1 reMlia in full force and effect; however. ~ntil the de,troyed PREMISES are repaIred, rental (If any) paid by TENANT to LESSOR shall be reduced by such d.,tructloo. However there shall be no rent Jbatement Qr offset sho~ld the damage or destruction be caused by TENANT, 1ts employe-el j agents or co~tractor$. C. Non-Insured partIal Destruction. If the PREMISES are partially destroyed by any cause not insurable by fire insurance with an extended coverage casu.lty endors ... nt bot the PREMISES can still be used for the purposes deSignated je (lause II! (REQUIRED & OPTIONAL USES), lENAftT .iIi)'. it its option, terminate tnis leise unless lESSOR cor.merlces rebuilding or repair of lhe destroyed porlion of the PREMISES wit~i. 90 days from the date of destructi'On~ Hawever, theTIt'! shall be no rent abatement ar offset should the damage or destruct jon be caused by TENANT, its e.ployees, agents or contractors. Such terminatlon by TENANT sh.l1 be accomplished by giving LESSOR written notice of tefJIinat10n not sooner than gO days nor later than 100 days ifter the occurrence Df such damage or destruction. Ttlis lease sflall teminate on the date sud! notice of termination 'is. given to LESSOR. If LESSOR accompli.hes such repair or if TENANT fails to exercise Its option to termfnate J t"is Lease shall remal~ iA full force and effect, however, until the destroyed PREMISES .re repaired; rental paid by TENANT to L[SSOR (if any} shall be reduced I. tne same proportion that TENANT'S square (ootage leased i. reduced by suc~ destruction. However there shall b! no rent abatement or offset should the damagE or destruction be caused by TENANT, its employees, agents or contractors. Glass breakage shall not be deemed a partial destructian ~thiD the meaning of this clause. m 1. OIlHERSHIP OF IMPROVEMENIS (RL IS.0) S All i-.pr.v .... nt. constructed, erected or installed upon the PREMISES mu.t be free and clear of 111 l1er.i. claims, or liability for labor or mater;,l and shall become the property of LESSOR upon tenoinati,n or .arller expiration of this l.ase and s;"ll r ... in upon the PREMISES upon termination of this leose. Title to 111 equipment t fUTniture, rurAisi'!ings and trade-fixtures placed by TENANT upon the PREMISES shall remain I. TENANT, and replacements, substitutions 004 lIKXiificotions thereof oay be .. ade by TENANT throughout the ten. of this lease. TENANT ~y relOve suc~ fixtures and fUTctshings upon teraination of this Lease if TENANT is not then in default under this Lease, provided that TENANT 6 . ,;.- ) , , ' , • -, ,holl repair to the satisfaction of tne LESSOR any damage to tne PRE~ISES and improvements caused by ~uch reflOval and provided that usua.l and custOllary Ilghtfrlg, pl"""'.g and he.ting fixtures shall rema;n u~on the PREMISES upoo term~niltion of thfs lease. XIY. UTll!TIES (RL 17.0) S TENAnT shall be responsible for and shall pay, prior to delinquency, ,II c~.rg.s for .tilltle. supplied to the PREMISES. LESSOR shall p.y for w.t~r furnished to the preaises. n. INSUIWitE (RL 18.0) S TENANT shall maintain insurance .ccept,bTe to LESSOR in full force ,nd effect throlJghout the ter'll of this Lease. The policy aT' pcl'fcies of insurance ~aintained by TENANT shall provlde the following limits and coverages~ Pat leY MINI~ LIMITS OF LIABilITY (I) IIORKERS' {2} COMPENSATION Statutory CO!\PREHENS lYE GENERAl LIABILITY includll1g products and completed oper~t;ons, broad form contractual, and personal frtjury. Bodily Injury Proporty Damage Personal Injury 11,000,000 $1,000,000 $1,000,000 $1,000,000 11,000,000 ea. person ea. occurrence aggregate ea. occurrence ea. occUrrenc! Insurance s11a11 be in fiJll force and effect t:OOITIer.c;ng: on the first day of the term of Ulis lease. Each insurance poTTi::y required by this Lease shall contain the following claus!s: 1. -Tnis insurance shall not be cancelled, limited is scope of coverage or non renewed until .fter t~lrtl (30) d.ys written notic' has been given to the: CITY OF PALO ALTO/Real Estite DIYision, PO Box 10250, Pilo Alto, CA 94303', 2. 'All rights of subrog,tion are hereby waived against the cln OF PALO ALTO and the ... mbers of the tlty Council and elective or appointive officers or e.pToyees, when acting within the scope of their employment or iilppof ntment.· . 3, 'The Cln OF PALO ALTO Is added is an addition,1 insured as respects operatfons af the named insured at or fr~ th€ premises leased fr~ the CITT OF PALO ALTO,' 7 , ).' . ".' o o 4. "It is agreed that .ny insunnce maintained by the CITI or P4l0 ALTO will apply in exc~ss of, and not contribute to insuranc! provided by this policy," XYI. INSU~Cf (RL 18.2) R TENANT agrees. tc deposit with LESSOR'S Real Property Manager. on or IJ.erore the effecihe date of t"1s lease, certificitu (If insurance necessary to satisfy LESSOR that the insuranee provisions of tnis Lease have been c~~lied wlth~ and to r.eep S~th insurance in effect and the certificates therefore on deposit wit~ LESSOR during the entire term of this lease~ Should iENAHT not provide evfdenc~ of such requfred coverage at least thre! (3) days prior to t~e expiration of any existing insurance coverage, LESSOR lIay pLiTchase stich 1nstlrance~ on behalf of and at the expense of TENANT to prov;d~ six-months coverage. l[SSOR shall retain the right of any time to review the coyerage, f~rm) and amount of the insurance required hereby. Jf, in t~e opinion of LESs()R'S Risk Manager t the insuranc~ provisions in this tease do r.ot provide adequate protettiDa for ttSSO~ and for .ember. of the public ,sing the PREMISES, LESSOR'S Real Property Man.g.r .ay require TE~~ to obtaiu insurance sufficient in coverage, form, and amount to provide .dequat. protection as dehrmi .. d by LESSOR'S RiSk Manager, lESSCR'S requirements shall be rea~onabTe and s~a'l be d~signed to issure protection from and ;.gainst the .ind a"d ext2'nt of risk. which: exish at the time a change in insurance is reQuired. LESSOR'S Real Prop.rty lIan.ger s~.ll notify TENANT in writing of changes In the insurance requirements; and if TEHAHT dop.s not depodt copies of acceptable I.suranee polfcle. ~ith LESSOR incorporating suc~ c~anges wit~in sixty (60) days of receipt of suc~ notice, or in the event TENANT fails to maintain in effett any required insuri!r.ce coverage, this Leise s~al1 be in default without further notice to TfNANT. Such hilure .shall cor.stitute , ~.terhl breach ond shall be ground. for inmedlate termination of th5s lease at the option o~ l£SSOR~ Ttle prCKuring of such required p~lic.y ~r poHcles of insurifH:e shall not be constrU'ed to limH TEHA.IH'S Habllity hereunder nor to fulfill the ind-emnifjcation provision and requirements of this leas!. N{jtwithstanding said policy aT PQlicies. of insura.nce. TENANT shall be obligated for the f~ll and total iliY.JUnt of any daaage, injury, or loss caused by or connected 'With this teas.e or 'Eith use or occupancy of the FREMISES. [YII. ASSIGNING, SUBLETTING, AND ENCUMBERING PROHI8ITED (RL 19.1) S Since LfSSOR bas relied on the speCifIc background lnd capabilities of TENP~T in awarding this lEase. any ~rtgaqe, pledge, hYPQt~ecat;on, encumbrance, transfer. suble .. e, or .ss;g ..... nt (collectiv.ly referred to is fNCUltBRAIICf} of TENANT'S interest in the PRfM1SES , or irlY part or portioD thereof, is prohibited. Any atteapted EHCUMBRAKCf sh.ll be null .nd void and shall confer no right, title, or interest 1~ or to this lease. e , . , If the TEMANT hereunder 15 i corporitfon or an unincorporit!'d iSSGCiation or partners?lip. the EHCUMBRAHCE of ilny stock or interest in $lid corporation. aSSoc1itfon, or partnership which. in the aggregate over iny consecutive two-year period. exceeds twenty five percent {l5~~ shall be deemed an assignment withi~ the .. an log of this cliu,e. XVIII. NOTICES All notices pursuant to this lease shall be addressed as set forth below or as elther party..., subseQuently ~e'ign.te by written notice an~ s~.l1 t. sent through the United States regular ~ail. To: ~ City Clerk City of Pil. Alto P.O. Box IOZ50 Palo Alto. CA 94303 and City of P.l0 Ait. Aeal Estate Division P.O. 8<>x J0250 250 Hamilton Avenue P.l. Alto, CA C4303 IU. An~.CHHEIIT TO LEASE (Rt 24.0) S To; TENANT P.10 Alto lawn Bowls Club 414 Embarcadero Road P.10 Alto, CA 9430; This leas. includes the followIng exhIbits, which are attached hereto and by this reference incorporated into this Leise; £x~ibjt A . General CondItions Exhibit B . Descr!ption of leased Premises T~e inclusion of clause. in Exhibit A (GENERAL CONDiTIONS) is not in any way i~tend&d to lessen t~e iMportance Df t~ese clauses, but is merely done to enhance the Q~anizat1on of various clauses and this t!ise. g IN WrTHESS WHEREOf, the partie. , ••• Ixecuted this L.'s. the day ,nd year first .bove ..,.ttten. LtSSO/l: CITY Of PALO ALTO (LESSOR) 8Y'== _________ _ Mayor ATTEST: 8Y'==== _______ _ City Clerk APP1Ill'ffi) AS n FORI!: BY, Assistant City Attorney P1IOI'EltTY DESCRI pn 011 API'RQVEI): I[COIII£MDED FOR APPROVAL: BY '---::-1===---­Director, Recreation BY: -M~an~a~g-e~r.~R~ •• ~l'"P~ro~p~e~rt~,~---- BV:=~oc-_-__ -----­Risk ~.n ager TEIWIT: PALO ALTO LAR'H BOWlS CLUB, lHe. ITS: Treasurer 10 o I. DEFIHlllOHS {RL 27.1) S EXHl8lT A GENERAL CONDITIONS LESSCR sh.lI me .. the City Council of the City of Palo AltG, • municipal corporation~ The City Manager is hereby ,authorized to take any actions under this lease on behalf of LESSOR except for termination of this l.ase. Clauo.s ;0 this l.as. refer to specific officers or eMployees of LESSCR. Should these positions be e-liminated or the title dlange.s. it is understood and agree-d that such references shall be consid.red to be to the new tltl. for r.n .... d positions or to the r~placement officfal deSignated with the responsibilities of .ny eliminat.d position. Z. PARTN[~SHIP/CORPCAATE AUTHORITY I lIA81111Y (RL 27.1) S If TENANT is i partners~;p eath general partner. A. represents and warrants that said partnership 1s a duly qualified partnership aut~orized to do business in Santa Ctara CountYi and S. shall be JOintly and severally liable for performance of the tenns and proYis~Q~s of this l~IS!. If TENANT is • corporation, each individual signing t~is lease on benalf of TENANT represents and ~arrants thatj A. he is duly authorized to do so in accordance with in adopted ResoTutfon of TENANT'S Board of Directors or in a(cordar.c~ with the Bylaws of the corpont;on; ilnd 81, TEHANT is I duly qualified corporation authorized to do business in Sarita C.lara County. 3. TIME (RL Z7.3) S Time is of the essence of tnis lease. (. SIGNS (Rl 27.4) S TENANT agrees not to construct. aai~taln, or allow any sign to be placed upon the PREMISES except is ea~ be approved by LESSOR. Unapproved signs, banners, flags, etc., ~ay be removed by LESSOR. II o 5. PERMITS AND liCENSES (RL 27.5) S TEHANT shill be reqoirod to obtai. ".1 ond .11 permits and/or licenses ~hlch may be required In cOII""ction With the operotlon of, and any approved TEHANT constructi •• upon, the FRENISfS as set fort. in this Le.se. &. "ECHAHICS LIENS (RL 21.5) S TENANT shall .t ,II time indemnify ond sove LESSOR hanoless frOM .11 claims for labor Dr materials suppl!ed in connection ~1th cO"5truction, repair, alteration, or instal lit i on of structures. illlpr-ove.ents, equfpsent, or fae il it 1 es wi tf'li n the PRrMISrS, and fro. the cost of defending against such cl.;~', including attorney f •• s. TEHAHT shall provide LESSOR .it •• t least 10 diY' _ritten notice prior to c~ncement of iny work wh;c~ could g1~e rise to i BCchanics lfen or stop notjce~ lESSOR re •• rve. the right to enter upon PRrMlSES for the purposes of posting Notices of Non·Responslbility. [n t~e event i l1en is imposed upon the PREMISES as a res~'t of such construction, repair, alteration, or install it lon, TENANT shall either: A4 Record I valid Release of lieni or B. Deposit sufficient c.s~ wit~ lfSSOR to cover the amount of the cl.i. on tne lien l~ qUfstfon and authorize payment to the extent of said deposit to any subsequent judgORent holder th.t .,y arise os I ~.tt.r of public record from litigation with regard to lienholder claim; or (4 Procure and record I bond In accordance with Sectfon 3143 of the C;~ic Code, .hich frees the PR,"ISES from the cl.ia of the lien frOM any .ction broug~t to foreclose the lien. Should TENANT f,ll to accaapllsh one of t~" three optional actions within 15 d.ys ,fter the flling of such. 1 ien, the Lea.e sllall be in default and may be subject to illlRedJ,ate terDIination. . 7. lEAH ORGAIIIZATlOH ANO RUnS Of COHSTRIiCTION {Rl 27.1) S WOrds of the .. scullne gonder sh.ll be deemed and coostrued to include correlotive wc~s of the feMinine and neuter gend.rs. Unless the context otherwise indicates t word, llq)orting the sfnguhr number Shill jnc'!ude th!!' plural number and Vlee versa, and words importing persons shall i~clude corporltion$ and assoei~t;onst fncluding publlc bodies, as ~ll is natural persons. The tenls -hereby-, -hereof-, -hereto-.. -nereiD·, -.hereundp.-r" and ilny similar tenls, IS used in t~is agreeMent, refer to t~is agreement. All t~e teMAs o.d provisions hereof sholl be constru.t to effectuate the purposes set forth hereia, and to susta~. the validity n!!'reof. 12 • '" '. /' The t~t~es and headings of the sect{Qns of t~is agreement have been 1~serted for convenience of reference only, are not to be cctns.fdered a part hereof and shall not 11'\ Iny way IDCIdify or restrict any of th.e tenns of prol(isions hereof or be considered or gf'W~r) any effect i" constl"1.ling this agreement or any provision, hereof t" iscertaining intent, if any questfon of i~tent shall arise. s. AM£HOH£NTS (Rl 27.8) S This lease set. fortn all of the agreement, and understanding' of the parties and any aodifications .ust be wrjtte~ and properl, exec~ted by botn parties. 9. UNLAWFUL USE (Rl l7.9) S TENANT agrees t~at no i~roye~nts s~al1 be erected, placed upon, operated, nor maintiined wTthiA the PREMISES. nor any business conducte~ or carried on therein or t~erefrom; i~ violation of the terms of tAis lease, or Df any regulation, order of law. statute. Dr ordinance of a governmental agency ~aving jurtsdfction o~er TENANI' 5 use of the PREMJ SES. 10. NONDISCRIMINATION (RL 27.10) S TENANT and its e~loyees shall not discriminate against any person !x!cause of race. color. ances~rYt age. sex. national OYlgiD or physl(al handicap. TENAN1 shall not discriminate against any employee or appl feant for employment because of rac.e. color, religlon l ancestry. sex, age. national origin or physica) ~and],a9. lEWANT covenants to aeet all require~nts. of the P,.lo Alto Municipal Code pertaiAing tli nondiscriminition in emplo}'lDent. If laWn is found in violi,tion of the nondiscrimination prGvision af the State of California Fair fmployment Practices Act or Si.nir pl'1rwisiol'ls of federal law or executive orde'T in the conduc.t of their activities under t~fs lease by the Stat~ of CaliforDTl, fair Employment Practices CQmmission cr the equ1va1ent federal igency Dr officer, it shall th2'Teby be fo~nd i ... ter;.l breac~ ~f this lease. LESSOR 'hall then have the power to cancel or ~uspend this t~a$e in whole or i~ part. 11. IHSPECTION (Rl 27.IJ) S LfSSOP'S employee, and agent, shall ~oye the right at .11 reasonab1. time. t. inspect the PRElIISES t. dete",'ne if the pro.;'io", of this lease ore being c""",Hod with. 12. HOlD HARMlESS (RL 27.12) S TENANT hereby waive~ a11 clai~s. liab11ity and recourse against lfSSOR iocluding the right of contribution f~r loss or damage of or to persons ~r property arising from~ qrowin9 out of or in any way co"nected with or related to thi£ agreement. TENANT hereby ogr •• , to indemnify, hold hano"" and defend LESSOR, its officers, agents, and eaployees against any and all clafms, liability. demands, daruges .. 13 .. I '. o cost. expenses Dr Ittorneys' fees arising out of the operation or ~aintenance of t~e property described herein or TEHAHT/S perfonaance or non performance of the terms of t~fs Le.se. I. t~e eyent LESSOR fs named as co·defend.nt, TENANT shall notify lESSOR of s"c~ fact and shill repre •• nt LESSOR in s"c~ legal action unless LESSOR undertake. to represent Itself as co·defendant io such leg.l action, in which event TfNANT shall pay to LESSOR Hs litlg.tfon costs, expenses and attorneys' fees~ 13. TAXES AND ASSESSHf~TS (RL 27.13) NS T,fs LeiS. MOY cre.te a possess.ry fnte,,'t which fs subject to payment of taxes levied on s!ldi interest. rt is understca-d l!.~d iiigreoed that an taxes and assessments (except said possessory interest tu) whfch become dtJ!' and payable upon the PREMISES or upon fI.tures, equipment on other property Instolled Dr constructed thereon, shan be the f.ll responsibility of tenant and ten.nt sh.ll p.y said taxes and assessments pr10r to delinquency. City wfll pay for any possessory Tnterest tax levied agal"'! TENANf'S.lea,eh.ld interest. 14. SUCCESSORS IN INTEREST (RL 21.14) S Unless otheMllse prOVided in t~fs lease, the terms, covenants, and conditions contlined herein shall apply tel and bfnd tfle tJeirs J successors~ 2XeClJtors, adllhistritors. and aSSigns of an the parties lIereto, illl of whom shall be jofntly .nd severally lIable hereunder. IS. CIRCUMSTANCES VHICH EXCUSE PERfORMAHCE (FORCE MAJEURE) (RL 21.15) S If either party herot. shall be del.yed or prevented from the perfonoanc. of any act required here~nd!r by reason of acts of God, restrictive govern~ntal laws or reql11ations~ Dr otber (aUsl!' without ,fault and beyond the control of the party obligatEd (fin.ncial in.bility excepted), porfo .. an,. of suc~ act ,~al1 be excused for the period of the delay and the period for the porfonn.nc. of any such act 'hall be extended for a period eQui •• lent to the period of such delay. 16. PARTIAL INVALIDITY (RL l1.1~) S If any ten.. coye"iI~t, canditlon, Dr proviSion of this lease is deter.ined to be iDvaltd l VOid .. or IInenfQrc~able. by I court of competent juriSdiction, the remaiP'ider of the prcarisions hereof shall reaaiPI ia full force and I!.ffect and shan in no way be affected, iapaired, rr inVilfdated thereby. 17. WAIVER OF RIGHTS (RL 27.17) S ne failure of lESSOR or TEIWIT to insist upon strict perform.""e of any of the ten.s, coYenants , Dr conditions of tAis leas! s~al1 not be deeaed I waiver of any rIght or remedy that LESSOR or TENANT may have, and shall not be dee.ed • waiver of the right to reQuire strict perforaance of all the tenrs, covenants. and 14 • ::-' o condttions of the Leise thereaft!r, nor I waiver of any remedy for the subsequent breach or default of any teMa, cove~ant, or condition of the lelse. 18. COSTS OF SUSTAINING Aft ACTIQH FOR BREACH OR DEFAULT [RL 27.le) S In the event either LESSOR or TENANT COlll1lEnces leg.1 action against the other c1li.ing i b ... "h or default of tMs Lease, the prevail ing party in such litigation sf'lall be entitled to re-cover frOG the Dther cost of sustaining suet! action, including ~isona~le .ttorney f.es, .s ~ b. fixed by the Court. 19. RESERVATIONS TO LESSOR (RL 27.19) S The PREMISES are .ccepted IS i, and where is by TENANT subject to any and ill eXistfn9 easements, and e"{UEbrlnCes~ LESSOR reserves the right to fRstal'. lay, construct, ma~ntafn, repair, and ope rite such sa~itlry s~wers, drains, storm water sewerl., pipe' ines, manholes, and connections; water, oil, and gas pipelines; telep~one and teleqrilph power lines; and the applfcat10ns and appurtenances necessary or convenient for connection therewith. in, ever. upon, t~rough. across and along the PRE~ISES Dr any part t~.reof, and to enter the PREMISES for any ind all such purposes. LeSSOR Ilso reserves the Tjgbt to grant franchises. easem!nts rights of way. and permits, 19 over, upon, through. icross, and alang any and III portions of the PREMiSES. No right reserved by LESSOR in this clau,. shall be so exerclsed is to interfere unreasonably ~th TENAHT/S ~peritiofl hereunder~ LESSOR agrees that rights 9ranted to third parties by r.as.n of tkis clause shall tonta;~ provisions that the surface of the land shall be restored is nearly as practlcable to t~e origtnal co~dit;on upon the completion of any construttfon. 20. HOLDING OYER {RL 27.20j S r. the event TENANT shall continue in poss.ssion of the PREMISES after the teno of the lease, such possession sh~11 not be cor.sidered a renewal of t~is tease but a tenancy fro~ month tG mont~ and shall be governed by the conditions. and covenants contiined in this Lease. 21. CONOITlOlf Of PREMISES UPON TERMINATIOIf (RL 27.21} S Upon teneination of th1s lease, except as Dtherwise agre~d to h~rein, TEHANl shall rodeiiver possession of t~e PREMISES to LESSOR 1. substant;.ll~ the same conditIon til at existed il!SlOedi i.te 11 pri or to TENANT' 5 occtJpancy, r2i:soflab 1 e wear and tear, flQod, earthquake, war, and any act of war excepted. 22. DISPOSITJOIf Of ABANDONED PERSONAL PROP£RTY (RL 27.22) S If TElWIl abandons the PRENISES or is dispossessed thereof by process of law or otnendse, title to iny personal property be' .0glng to TENANT and left on the 15 o o PREMISES forty·five (45) day •• ftor such abandonment or dispossession ,nall be det .. ct to have be.n transferred to LESSOR. LESSOR sh.ll h.ve the 'ight to remove and to dispose of such prop.rty wlthout liability ther.for to TENANr or to .ny person claf.fr.g under TENANT, and shall ~ive no need tc account therefore. 23. QUITCLA1~ Of TENANT'S I~£REST U~ TERMINATION (RL 27.23) S Upon tenil.ation of this lease for .ny r ... on, includIng but not limited to t .... ln.tlon because of def~u1t by TEIW!T, TENANT sh11, ot LESSOR'S requEst execut., Icknowledge .nd deliver t. LESSOR within five (S) days after ,.:eipt of written d .. and thereof, , good and sufficient deed wher.by all rights, title, and Interest of TENANT in the PREMISES, Is Quitclaimed to lESSOR. Sho"ld TENANT fail or r.f.se to deliver the required deed to LESSOR, LESSOR may prepare and record 0 notic~ reciting the failure of TENANT to execute, ad:nowledge and deliver such deed and s~id notice shall be conclusfve evidence of the terminatjon of this Lease~ and of III rIght of TEMAHT or those Clll.log under TENANT i. and to tne PREMISES. 24. LESSOR'S RIGHT TO x[·ENTER (Rl 27.24) S TENANT .grees to yield .nd ~e,ce,bl} deliver possession of the PREMISES to LESSOR en the date of termini!ticn of this lease, whatsoever the reason for such ter~lnation. Up~n giving wrltten notice of ter.lnat;on to TENANT, lESSOR shall hive the right to re-enter and tate possess.ion of tlle PREMISES on the date sud! tennination becomes effective wi thout further notic!!' [If a!"lY tfnd and w,thout lnstitut1cn regular legal proceedings. Terminati~n Qf the Leise and re-entry of the PREMfSES by LESSOR sn,l1 in no way ,I ter or diminish any obligation of TEMAHT under the lease terms and s~al1 constitute an acceptance or surrender~ T8NANT ~aiyes_any and ill rightof. ~demptlon under any eXlsting or f~ture l~w or statute in the event of eviction from or dispossession of the PRE~IS£S for any reason or in the event lESSOR re-enters and lawfully re-takes Poss!ssion of the PREMISES. 2S. CONfLICT Of INTEREST (RL 27.25) S TENAN1 war-rants and covenants that no official or eaployee-of l[SSOR nor any business e"tlty i. which any offici.l or eepl.y •• of LESSOR is interested: II) has been employed or retained te solicit or aide iR the proturing of this agreement; (2) wIll be eeployed In the perfonoanc. of t~js .gr .... nt without the dIvulgence of soch fact to lESSOR. In tne event that LESSOR determine, that the 'mployment of any such Dffichl, etaployee or bustness entU, is not compatible witk such officill's or employee', duties .s in offlcl.l or employe. of LESSOR, TEK~T upon request of LESSOR shall immediately termInate such employment. Violation of tois provision c.onst;tutes I serious bread. of. this lease ilind lESSOR mal' terminate t"is lease is ~ resijlt of such violation. 16 • 26. EMINENT DOMAIH (RL 27.26) HS In t~e eyent t~e w~ol. or ""Y part of t~. PREMISES are condeMed by • publlc entity f~ the lawful exercise of its power Qf eminent domai~. t~is leise shall cease as to t~e part condeaned. The d.te of such termlnition sh.ll be the effectiYo date of possession of the whole or part of the PREMISES by the condemning public entity. If onlJ a part is condemned and the '-iii .. jeiiinaiion of tnat part does not sub$tantflliy impair the capacity Df tbe re;ainoer to be us~ for the purposes required by this leise, TENANT sha11 CQnt~nue to be bound by the terms, covenants and condition of this tease. However, the then current mi~imUQ annual rent shall be roduced in proportion to the relationship that the compensation paid by the cDnde.."Ing public entity for the portion condel1llled be.rs to the yalues of the entire PREMISES as of the date of posseSSion of the part cond_ed. If. the condemnation of • part of the PREMISES substantially Impair. the c.pacity of the remainder to be used for the purposes required by this Leas., TENANT may: A. re ... l"te t~h le .. e and thereby be absolved of obligations under this Le.s. whlc~ have not accrued as af the date of possession by the condemning public entity. or B. Continue to occupy the remafning PREJ;U-SEC) and t~ereby continue to be bound by the tems, covenants and conditions of tflis lease. If T€HANT elects to continue in posseSSion of tne remainder of the PREHIStS~ the then cu:rrent annual .iai.u~ rental shall be red~ed in proportion to the relationship that the c~e~satfon paid by tne ccndemni~g public e~tity for tne part condemned bears to the ~alue of the entire leased PREHrSES as of the date of possession by the condemning publIc entity. TENANT shall proYide LESSOR written notice .dy; sing LESSOR of TENANT'S choice .it~In 30 days of possession of the part condemned by the condemning public entity. LESSOR sh.ll be entitled to and. shall reCEive .11 compens.tion reTited to. the cond..."tlon of ,11 or p.rt of the PREMISES by the exercise of [minent Gomaln except that TENANT sh.ll be entitled to tn,t portion of the compensation whic~ represents the value ~f the TENANT constructed improvements. Z7. POST-ACQUISITIOH T[NANCY (RL 27.2S} S TENANT hereby acknowledges that its occup.ncy of the PREMISES is subsequent to .cquisitlon of the PREMIS[S by LESSOR. TENANT further underst"ds and agrees that is ill PQst·acquis.ition tenant, TEHAKT is not el1g1ble and furthermore 'Wahes all ciaims for relocation assistance and benefits under federal, state or local law. 2S. HAZARDOUS SUBSTANCES (RL 27.29) S No goods, merch.ndls. or •• teri,l sh.ll be kept, stored or sold in PREMISES which IF'!' in any way explosive or hazardous; ilnd :no offensive or dangerDus trade, business or occupation shall be carr1~ on tnerefn or thereon. and nothing shall 17 • o o be don. on or TrOt!! PREI!IS£S other tI,," .. provided for in this agr •• "",t which will 1ncreasE' tht rate of Dr suspend the insurance upon, the-PREMiSES or upon aljjacent buildings or other struetures of LESSOR. No .ac~jnefY or apparatus ,h.ll be used or oper.ted on the PRB1ISES whIch WIll I» any way InJure the PREMISES or adjacent buildings, provided, however, thot nothIng In tM. parograph contained shall preclude rEfCAHT fr .. bringing, keeping or using on or about the PRE~ISES and bYild~ngs SUt~ ~atertals, supplfes, equ1~nt Ind ~ac~fnery as are necessary or c.,tOBir; In carrying out the required or opprDved option,l use. of the Lease. In the event such wso. Include the keeping or storo;e of I.n .... ble Dr explosive substances t such 5ubsta"tlJ s~al1 be stored fn closed cont&iners, and shall be slo.ed, .sed ., dlspon.ed I. the aln.er prescribed by the r09ul.tlon. of lESSOR or other public body ~.Ylng authority In the .. tter, ond In .ny event, In the safest PQ.sl~'e "n"er. • 29, ALL COVEHAftTS ARE tONDITIONS (Rl 27.30) 5 All provision. of the l.u. are expre.,l, made conditions. 30. PARTIES Of IHTEREST (Rl 27.31) 5 Nothing 1'" this agree.ent, expreued or illtplied, is intended to, or shall be construed to, confer upon or to give to any person or PiTty other than LESSOR and TENANT the covena"ts, c~nd1t1on Dr stipulations here~f. ~ll covenaMts, st1puldlO1lS, profl!~ses and IgreeRlE!flts in this Lf!ase sf\all be for the saTe and exclvslve benefit of LESSOR and TENANT. 31. RECORDATION Of ·lEAS< (Rl 17.ll) S Heidler LESSOR nor TOWn shall record tftis Lease; however. a short-form llernorandua of lea.e __ , be recorded at lESSOR'S request. i8 -.. -' -.' ~ EXHIIIT • . ,'. . ' ' .. ", : -, •