HomeMy WebLinkAbout0221.095.'
FROM:
City oCPalo Alto
City Manager's Summary Report
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HONORABLE ('lTV COUNCU,
CITY MANAGER DEPARTMENT: FINANCE
AGENDA DATE: MAY 1,1995 CMR:211 ,95
SVBJECr: AWARDOFOYnONTOLL~ETHE~SFACa~
LOCATED AT 3005 MIDDLEFIELD ROAD (funner Chuck
ThompsoB site) 1'0 COMMUNITY SKATING, INC.
REOUEST:
This report transmils the response ofCommwrlty Skatlng.ln<:. (CSl) 10 Cooocil direction of
'une 6, 1995 "'garding the lOrmer Chuck Thompson faCIlity located at 3005 Middlefield
lload, and requests the awanl of the attache<! option-to-lease 10< the site \0 C<xn:munily
Sbling, In<:. (CSI}
SEmMMENJ)AIIONS:
SIaff~!hat Council autborize the Mayor 10 execute the attacbed opIion-lo-lease
betweca the CIIy of Palo Alto ancI CSI for the develcpm<nt and operation of ~ \emUs facility
a! 3005 Middlefield Road.
POllCY IMPLICATIONS:
This agreement doe> !lOt represent any chang .. 10 elcisting City policy.
EXE(JJ]1YE SUMMARY:
In response 10 Council direction given on June 6, 1994, CSI bas ... bmitted the attache<!
~ 10 Council Motion", which descnbes • two-phased de>-elopment fur the fOOner
Chuck Thompson site. Phase I includes upgrading and operating the IOU< elcisting tennis
courts and completing the landscaped parking \0(. Phase II includes the addition of. fifth
t.ennis wort lind possible restroom.s, snack bar and special event seating. The Ph ... n plans
hpl.n
an: coocq>tuaI and will depend upoo pr-actkalily. feasibility and additional City review and
approvals required during til< option period. Tho attached optioo-to-lease plO'ides fOr. two
year option period. in wbkh CS1 is required \0 00Ialn approval of its plans for 1he
developmenl ar.,d operation of til< site and show eviden<:e r;,{ suffkicnt finances prior \0
mtering inIo1be lease. Major1enDS o[!he lease include. IS-year Ierm and. 5100 one-time
payment fOr rent. The IIOI!lOO!lCIary consideration is 1he deve!.>pment and opeAtion of •
n:aeational kIInis facility at no cost \0 the City. ReIIIled staff reports: CMR:426:6.
CMR:376:9. CMR:52S:O. CMR:547:O. CMR:5I3:O. CMR:248:93. CMR;29J:94_
FISCAl. IMPACT:
None.
ENVIRONMENTAL IMPACT ASSESSMENT:
The Enviroomenta.l Assessment, as may be required under the California Envlroomental
QuaIlty Act (CEQA), will be prepared during til< opticn period, in coojunction with 1he
opIionee's applicatioo and approval of. condltiooal use pennit for !he p"'posed use and
""Pn?vCmenIS.
AUACHMFbTSIFXHIBTTIi:
AItlichment A {.ite plan)
AIIacbment B (CSI ~ ic C<luncil Motioo)
AIIachmenl C {LeUer from MorIon &: Associates)
AnaclJ~ D (Swnroary of Optioo \0 Lease)
Attachment E (Optioo to Lease)
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CiTY MANAGER Al'PROV AL:
IX: Coo:\InuniIy Skating. )""_
Palo Alto Tennis Club
Middlefield Homeownets Association
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City of Palo Alto
City Manager's Report
AWARD or OPTION TO LEASE THE TENNIS FACILITIES
LOCATED AT 300$ MlDDLEFlELD ROAD (rormer a..ok
TIIompsmllite) TO COMMmoo'ITY SKA TL"G, INC.
BF£t}MMENPATIONS:
Authorize the: Mayor 10 execute the attaohed option 10 lease betweeo the City of Palo Alto
and CSi for the operation and deYek>pmcnt of a tennls facility at 3005 Middlefield Road.
BACKGROUl'<1)
In November 1985, the citizens of Palo Alto approved haIloc measures authorizing the City
to exchange public land b a 3.74-""", site on Middlefield Road. The Middlefield Road sire
included the: outdoor ice sbting rink commonly \ncwn as the W-1lI~ LOOge; a swimming
pool. • small gym and five l<mlis C<lurfs, commonly looWD as the $ormer Chuck Thompson
swim and tennis center site; and. va<anl Ioc at the ftoot of!he site, formerly occupied by.
8beIl gas sIalioo (see Attacbmenr A). The land exdlaoge was completed in September 1986.
011 June 19. 1989, !he Council apptoved Ihe ~bange of the C<>mprehensive Land Use
designation /tom Multiple Family Resideo!iallio Majo< InstitutionISpccial Faculties and the
dlaoge of the zoning Ji'om RM-I S (Low Density Multiple Family Residential) 10 PF (Publi<:
Facilities). In July 1989,1he Council approved a twenty-year Jease of the WIll!er LOOge
po<tioo of!he site 10 Community Skating. Inc.
00 April 26. 1993, Council apptoved • Request for Proposal (RFP) b the long-term lease
of the swim and Iemlis court facility and dire<:Ied stafflo solicit proposals. 00 July 20, 1993,
two proposals were received from the Palo Tennis Club (P A TC) and Community Skating.
~. (CS!). 00 June 6. 1994, the Council approved. motionlO cftrcct s\affl<> I) proceed Vlltit
Phase I of the CSI proposal. with the participation and Issistance of the P ,lTC, as
appropriate; 2) explore with CSI and PA rc, as appropriole, &:velopmenl of the remainder
of the site wi.th \ow intensity reaeational uses !hat are compatible with the surr<lWlding
neigbborfloocls. not including. swimming pool use, that there be 00 cost 10 the City, that the
tennis courts not be Iigbled, and retum 10 the C.ooncil with recommendations; and 3) adopt
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!he Budge! Amendment Ordinance establi&Iing a CapitBl L'11provement Program (CIP)
proj¢ct in the omounl of 530,000 to remove and baci fin Ihe swimming pool. The pool is
scheduled for removal1his S1llIlI'OCI'.
POI.ICV IMPIJCAIIQNS
This agreement docs not rep.~ any chang. 10 existing policies.
CSI RESPONSE TO COUNCIL MOTION
In accordance with CounciI'. nu-ectioo, CSI has had a number of """,tings with tlJe PA TC
10 discuss implemenlalion of Phase I approved by Council and the deveklprnen! of the
remalndeI of lh. sile. M. ~ of these meetings and QISCussioos with staff, CS! has
submiUed the attached 'Respoose 10 Council Motioo· (Attachm<nt B), which is sun:II18riz.cd
as foIWws:
CSl proposes I two-ph:sed development. with Phase I consisting of upgrading and openIting
tlJ. lOu£ existing tennis courts (the upgrade may include re-aligning two O£ rom ~ 10
mjnjm1~ the effects oflho sun), completing the Jandsc"Pfd parking lot and developing site
drainage and landscaping. as necessary. CSl proposes 10 operate • lennis program
empbasizIng skill development in I ntlItUring, non<OOlp<1itive environment. The primary
fucus of the program will be summer grc.up lessons, althoogh private Iessoos will be
avBllable from lenni. pros. CoorIs will Iho be ,vIll1ab!e during scheduled public use times
10 players who have purcbasod keys. CoorIs also may be ....."ed lOr toumaruent ploy. The
summer progmm will operate Sour days I week. from mjll-June 10 the end of August.
Lessons will be twice I week lOr SO nUullles, between the hours of i 0:00 a.m. and 12:00 p.rn.
and 2:00 p.m.1O 4:00 p.m. lCeys Wlll be sold 10 the poblic lOr awroxiroate1y $100 per tey
per year. Keyed players may use the coutU during scheduled public use times, (Refer 10
page 6 of Attachment B for more defluls of the proposed schedule.) The winter operation
will coosisl ofkeyed entry 10 the courts ooIy. from tlJe hours of 1:30 a.m. 10 sunset.
The !'base IT proposal CCflSists of the development of the remainder oCtlJe ,ile with I fifth
Iennis court and, possibly, restrooms, I SDack bar and spetial_en1 seating. Au open area
would remain lOr • parl</baIbecue...... Please refer 10 Ihe ~ site plans 00 pages 10
and II of Attach .. nenl B.
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PA TC has asked CSIIO supplement Phase r of its propos!! with the lOIIowing: f'res,,-ntation
ofa summer skill development kssoo series, coosidernfion ofre-oligning the existing courts
to minimize the sun', effect, eventual addition of. fifth C<lW'I, lighted courts. restroom
facilities, and spc<:ial-event seating. CSI bas agreed 10 implement the requested items as is
practicable, financiaJIy feasible and pennitled by cootractual obligations with the City. CSf
oo!eS!hat aItI>ough PATC had hoped lOr additionalJigh!ed cootIs at the site. Cowlcil bas
approved !'base r with unlighted courts and. tberelOre, csr bas suggested !hat P A TC consider
fundiDg 6gb!ing on courts al cther City or School District sites 10 enable the community 10
benefit &rom exteaded cCourt usc.
CST, estimated cost lOr Phase r is $134,000, which includes $60,000 lOr upgrading the !Our
existing tennis C<;Urts; S5O.000 ror «>nS1ru<.-ting the new Iandscoped pamng 101 (in the
location of the bmer Shell ,1ation); and $24.000 \0 develop site drainage and landscaping
plans. wbiclI will be implemented <luring Ph ... n development. The estimated cost lOr
Phase II is $73,000. whlcl! includes SS,OOO foe storm drains, 520,000 lOr regrlding, S! 0,000
lOr landscaping and S3S,OOO lOr construction of the fifth tennis coorl
ANALYSiS
Ymancial F=ibllity
CSI plans 10 finance lite Phase r capital impro,'ements fi'om its curren! operating surplus. As
staled in lite attached IeUer fi'om MorIoo &; AssOOates (A=1unertt C), CSI has an existing
SIOO,OOO reserve lOr this J>IIIPOSe and, based on the operating surplus generated by the
program during the 1iscal year ended April 30, 1994, CSI shoold be in the positioolo fund
!he IemIis court refurbishing fi'om lite operating surplus projeclcd during the upcoming lease
cp6<m period. AL"O, ifnecessary, CSl could negotiate an extcruion of!he S25O,OOO nne of
credit,..nidI it put in place 10 fund • portion of the costs of the recenllycoostrucled \e3Cbing
rink.
The projeclcd revenue and expenses lOr the tennis program are included on page 14 of
AtIa<:bmenl B. The figures lOr the ongoing costs of operating the facility show an annual
deficit of 59.500, whlcl! is the annual amortization of the S95,OOO cost lOr tennis coort
upgrade ($60,000) and the addition of the fifth court (S3S,OOO). CSI plans 10 cover the
AIllicil'ated $9,500 annual q>erating deficit wilh q>erating surplus from the Wmler lOOge
program. Staff has some coocem that CSl's projecled revenues may be high. The marl<ec
lOr OOUII keys at $100 per year may be limited, coosidering the numbec of free jlUblic courts
and priVllle IenIlis club> in the area; alld the proposed tournament court fees of $2S per day
CMIl:21I:95 ..... , ... ,
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per coort OR hi6b (C;CY wurt fees are $16 pet day per coort). CS! is aware of Slaffs tooeemS
and is rooficknllllat it can suppon die tennis program ""ficit
Q)nsisla\cy of Proposal with CcunciI Direction
CSls Phase I proposal is cooslstent wilh Council's June 6, 1994 approval O(dIe upgrade and
cpemiOII of the tour existing I<mnis coorts. Coontl1 clireclion 10< !be remainder o(the site
was 10 expkxe developmenl wid! low inleosity recreational uses !hal are compatible with the
surroooding neighborhoods .. csr. Phase II propcsaI is coocep!Ual at this stage, and DO
environmental assessment has ~ dOI!e to identify impacts whicb the proposed
improvem<1IIs and uses might have OIl the nelghbodwod. Once the option is 5warded. CSI
will devekip and submit site and deVelopment plans which will undago exlensive review by
the City fa> !be emiroomental impact assessment. the COIlditional ~.., permit and approvals
by the Arohitec!umI Review Board (ARB), Planning Ccmmlssion and City Council.
PROPOSED OPTION TO LEASE
The attached Optioo-IO-Lease is ronsistent with the !mnS 0( the RFP approved on April 26,
1993 and with subsequent direction of Cooncil. Un&T die option-IO-lease agreement, CSt
is granted a two-year op6on, during v.1tich time CSI must satisfy !be specified cooditions
prior 10 exen:ising the option and entering into the lease. No ""velopmcnl or 1I5e 0( the site
will take place WlIilthe option COIlditioos are mel, !be optioo is ex=ised and !be lease is in
e&ct The option 10 1ease allows CSIIo de\'elop and opetaie in pba.<es; however, it should
be noted Ihat !be development plans approved during !be option period must inc!udc bodJ
phases and wm constitute a master plan f<it !be site.
Major cooditions w!tich CSI. as optionee. mu.<I meet prior to entering into the lease are as
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I. Pay the optioo Purchase Price {S1_000).
2. Obtain • conditional use permit IOc the proposed deve10pmenl and operation !rom the
C"lIy's Zoning Administrator.
3. ConwIY with the CalilOmia FavironmcntaI Quality Act (CEQA) 10 allow the project
to be implemented.
4. Obtain approval 0( its development plans (fur bodJ phases 0( the project) from the
ARB, Planning Commission and City Cooncil.
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Satisfy the Director of finance that CSl bas sufficient fllllUl¢eS or financial
i:OIIIltUtments 10 implemenlthe plans approved by the City and furnish the D'.recIor
ofrmance evidence 1bsI sufficient fin.ancial scaaity will be aV1ll1able 10 <OOlplek the
proposed construclion. (This condition will ~pply 10 PMs.e I only.)
6. Submit \0 the Real Property Manager a se<.1lrity deposit. as r<:quired by the !ease
($5,000).
The 0p000 may be e><er<:ised any time wilhln two yun, upon CGmpIeOOn of the cooditioos
outlined in !he opticn agreement. Upon exercise oflhe option, the Counci1 must award !he
Lease, ...mel! is auached 10 lIle Option ag=men! as Exhibit I. The purpose and r<:q.med use
m>der the lease is the <levcl<Jpment and operation of a recreatiooaI facility offmng tmnis for
public play and iDstructioo. Major tenns of the lease include • IS-year!Clm and • $100 """
lime payment for rcnl The oon-mooetaI)I considoration is the developmenl and operation
of • recrea60Dal :ennis facility at no rost 10 lhc: City. The City bas !he right 10 reveiw
operating boors, procedures and prices \0 assure that !hey are fair and reasonable \0 the
public. & requested by CSI, a1!be 1i'IlC the option is exercised, th. I S-year term will be
ad")US!ed downward \0 matclIlh. Ieml then remaining on csr. lease for !be W mler Lodge
(current tenn remaining 00 the Wm!er Lodge 2O-year lease is 14.15 years). Required
improvements are the improv=ents approved by the City during !he option period.
At1acbmeot D summarizes !be <""diDons of the option and lbe terms of the proposed Lease.
ALTERNATIVES:
Sinoe the agreement is C<HlSistent with prioc Counci1 direction, no altematives 10 awarding
the option 10 lease are addressed in this repor'_
FISCAL IMPACf:
None.
ENVIRONMENTAL ASSESSMF.NT:
The Enviroomental Impact Assessment (EIA), as may be required under the Califoroia
&Mrotum:nfal QIlality Act (CEQA), will beprepered during !he opticn period in conjunction
with !he opIiooee'. applic&ion and approval of a corn!itional use permit for the proposed use
and improvemcn~
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STEPS toU,oWING APPROVAL:
Thetw<>-y_cp600peri<xl wiU begin upon lhecxecutionofthe opOOn by IbeCity. andCSl
will begin tb<: process of fulfilling option cooditicns.. Wben the ccndilions bave been met,
!he Ieasc: will be executed; and coostru..-tion of the approved improvements ar:d operation of
the appNved recteatiooai facility will commence.
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COMMUNITY SKATING, INC.
USPONSE TO COUNCIL MOTION
FORMEIlCHtICK THOMPSON FACIUTY • MIDTOWN
1 COUNCIL ACTION
A8STllACT
n. I'HASS I· ESTIMATED COSTS "
ID. lNPtJT BOM mE PnA) ALTO tENNIs <UJB
IV. PROGRAM DESCJJPTJON
Y. fENTATIVE Pll.0P0SALS FOR mE REMAINDER {)F nlE SUE
Vl 1':EJWS Of I'HE l..EASE
vn. SUPl'OkTINGMATElUALS
COUNCIL ACTION
AI ill June u. 1m meotmg. !he CouncilIlDlllimously passed. motiOJ> praeo!ed by
Coun<:iI MedJer McCowa 10 proooecI with !'We I of the prC>pOSIIIlIlblDitted by
Conwurity SbM& Ino. b-.... cl'!he bmor CbuckThompSOli site. The motiou abo
iDItnIded CiIy IWt"lc explore witb CSl ODd !he Pal<> Alto TeoniJ Club !he 'deveIopmeI>l
of!he I-mder of!he siI. with low inlensity reaalional u ... tIlat .,. c:ompoIibk with
!he ~ ~ "'" incIudin& • rwlmmins pocIwcOo
Ia .......sance with cowx:iI'J instnIcIicnJ, CSI has met wiIfI PA TC 10 diocuss !he
""'~ of!he remaiDder of!he lite MIll !he litmtatioo ofllOll-lighted cowu and
. ......,.mon!li!he IOOIDd oemiIi\Oity ofDOigb!xn
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Comcwoi!y SUJma. IDe. (CSI) is pleasod to subnm Ibis "'PI'lem<nI to irs orijinaI
p«>po<a!liJ< t1l= ~ &tiel ~ o/'!be rom-Omt ThoInpsoo focili!y in
MidIowIL h dn<:te4 by <OUD<iI in '-1994,. when it IJlIlro""d csr. P!>ase J proposal.
roflhe_<lftfle facility, CSI boomct "","'0.\,,,<1 with the PaloMo Teonb Club
(PATe) 10 outline p. for ll:"'~. w! .... <If!be ~ of1l>e si!~.
MIDTOWN RECREA TIONA!.. CENTER COST ESTIMATES
INITIAL DEYf' opyfW COST ESTIMATES (PHASE n
I. DEVELoP SITE DRAINAGE PLAN S, .. oro
TO BE IMPU.MENTED AS SITE IS DEVELOPED
2. CQMPLETELANDSCAFEDPARKINGLOT AREA sso,oro
3. TENNIS COUIlT UPGRADE S60,oro
MAY INCLUDE ROTATION 01' 2 OR C COUIlTS IN-PLACE
4. DEVELOP SITE LANDSCAPE PLAN $I 0,000
TO BE IMPU:MENTED AS SITE IS DEVELOPED
TOT.o\I. S 134. oro
AOO!TJQNt.L sm PfVFI9PMfiNT COST ESTIMATES NOT 5PEC1FlC TO
PIIASJ); ONE -TO BE IMPLEMENTED Dl!!UNG PHASE D DOE QPMfNT
I. ADOITIONAL STORM DRAINS FOR NEW DEVELOPMENT
AREA BEHIND WINTER LODGE sa.oro
2. JtE.GRADING NEW DEVELOPMENT AREA BEHIND THE.
WINTER LODGE m.oro .
J. LANDSCAPING 01' NEW DEVELOPMENT AREA BEHIND
'ilIE WINTER LODGE S I a.oro
TOTAL
PHASE U DEYf' mfEN'T COST ESTIMATES
1. DEVELOPMENT 01' FlF1H TENr>.1S COURT
COST TO BE ASSUMED BY CSt AND/OR PATC
Sl8,oro
S3S.000
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PJ!.OGRA." DESCIUPTION
The -.;. program like the Wmter Loclge iee-skoting pr_ will emplwiu oIrilI
devcIopmenl in • 1IUlturing, IlOIl-COI%Ipetitivc environment. TIle program', prim>!} roc:u.
will be IIWDIIItI' group lessons, ohhous/l privotelessons will be lvailable tram tennis 1"'0$.
The IIUmIIIOr prognm will opera:e lOur do)'> • week &om mid-June throus/l the end of
August. l.eosoos will be twice • week lOr SO mimrt .. between tho boon 0(10:00 ..".12
.PM IlKIl:OO PM-4:00 PM.
Kry Elill')' Procnm
CSI pions I<> sell ke)'11o the public lOr ~e1y 5100.00 per tty, per year
Purchase of I kty will enable tenni. play,," 10 use the courts during scheduled pubI& use
lime.. K~ player. will be informecI wIleR keys ore purchased 0( tbese public use hlJUn.
II is important to DOle tl!a! this leMiI program serve> the entire community of Palo Alto
csr ,...:11 m.ur. that lbe use 0( keys does notlest6d usage 10 I p.m.::uIar dull ..
ocganizatiou. KO}"1 ... :n be purcl>ased at the Wint", Lodge and kty holden will receive •
sIaIemenI of the rules and regulations. Ktyoc! COUtU,. in this instance, are • method of
cootrolllDg the ~ of the courts IlKI DOIIimitins !bose seeking rec:reatioa
WIater: (SepI_ber -May)
There .. 11: be ktyoc! mil)' into the courts IlKI fo<iIities
The boon will be approlCimate1y 8:30am -1:00pm (or dark)'
Loeb wiII,...t &om both inside In<! outside.
Keys wiD be !OIdia the general public
Plio Alto Tennis Club will pub!iciu keys to dub members.
WIIll .. Lodge will pub/iciu keys and lesson program 10 ice skating customer •.
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The summer IenlIH lesson prosnm 81 !be MidI""", Ilecreation sit. will be designed roc
8IWP IeamiDg in & I!U1Iurin& IIOlI-COIllp<ti environment lust like the Willie< 1.<><18"
ice obIins prOgrams. tbe IW!imer Iemis program .. iD WlX$Ilate on skiD dcvdopmeat
"'")IOUDSSI<n ~ and his!> level play will !lOt be ofierocl in jp'0IIp lessoos
MaR speciIical!y.1ltis pWmod lenrU proanm will o!fer classa during the 5WI1I1lC5' IDOIlths
ot 1Ime,1uly. and August. A..ne. of ......... wilIlasI roor ..... Jcs and children will !lave
(2) ~ minutolaoons per week, wilD S ohildrea per class. IIlIo!lll,...,h lesson se:i<s will
olfer <IaJ>t cIassea roc 111 estimated cost ot $~J)O per~. Wtth!bur tennis <XlWti
....nable roc !bur houn per day. fOur days per week, """ bundreckixly childrea can
participate per IeuoD ...nco.
PrMt.leoscm may be offered 10 higher levd payers at & hig!>er price. TenrU pros would
work roc !he W~ I.<><Ig. 011 I COIIIn<;Iual basi.
Thi. modo! roc lesson stN<:ture 1Ia. pro~ highly ~ II !he ice IkaIing facility and
,.,lI ............ to !be 1emis coon
':00· 10:00 AM
;0:00· 12:00 AM
11:00 ·1:00 PM
2:00 -4:00 PM
4:00 • 9:00 PM
Friday • AI Day
TERMS OF THE LEASE
The lenDS Irid lXJIICIi60m of'the lease fur the proposed I""';, fIclity should eoincide 'O'ith
the.........,. Wmter Lodse lease. The tcnninati<>c dale Illd op!ion Ie extend en both 1e&s<o
IIlouId alto be icIemicoIle tho eurreot 1eue.
SlJPPOIt11NG MATERIALS
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INPI1T fROM PALO AL TO TENl'o~ CLUB
In ~ .. ilk the ~ of the City Council, {'S,t bas bad • ouml>e< ofmeetings
Mlh!be Palo Aha TO!rls Club 10 cliscuss imp1ernentanoo ofPbase J 1J>I>T<>'.'Od by Council
I<:tion tnd!be dMdopment of the remair1<16 of the sit •.
PATC bas asied CS[ to IUppIemen! PIwe I of its proposal MIl the Ibllowing.
• • • • • •
Pro:semarlon 0(. !IIlmIIler skill developlllOllllesSOd series
Comidemioa of re-alisning the Cl<isting coon. 10 minimize !be sun', etl'ect
E~ additioD 0(. Iit\h court
Ughted QlUrtS
llesI room fio<iIitieo
Special evenS -mg
Willi respocIlo CSf. pbn 10 ~ the rour existing <ourta. the PATC bas requeoIed
thai CS[ consid" re-orienting the <CUrtS by 90 degrees 10 minimize sun-sJarc PATC lias
olto asied CSlIO eansidc.-Idcfins :lCating fa< pll)'<fS anc! a obade.: pBtio 1rOI. PATC bad
bopod 10 pin a<IditioDol ~ghtod cowts. Construction 0(. fiflII court 10 make • more
alIl'toIive _ ficiIity y, .. also requested by PATC.
CSI ... ogroocf 10 impkmenl the requeoI<d ~ems as pnctic;ab1e. Iinan<:W feasible. as is
permitted by ill previouJ COII!rK!uII obIigatioos MIh the City. CSI ... also obligJIed 10
compIeIe the COIICIitiom 0( Ill< Ieaoe sovemins opemions of the WlIIter Lodge snd 10
must oompIote the iii. porking im;pro •• ", .. n" .. well as !be lenni. improvement •.
Oae o!PATC's hOpe. bad beea fa< additional Ighted cowts at the Middle!ie!d Road site.
CSI hu ougg<sted thall' ATC comides I\mding lighting DO cowts at otber City Courts ()(
Scl>ooI District cowts 10 eDIble !be comrntmity 10 benefit from extend<d <ourt u ...
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I'08IIIBLI
IlIloOIIIBHTEO
COURT
CONPIGURATIONS
"1?".-r.c..
11toj. • ..wHlaTlIOOIIa
AND
COYEII&D PATIO AIlIA
FIGURE 1
CONCEPTUAL RENDERING
MIDTOWN RECREATIONAL FACILITY
DEVELOPMENT OPTIONS
, '
1l..'o\.I... ITH
TeN". OOURT AII&A 811AL~ p"nJ(/BIIQ AIIBA
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IIIDDLEPlEI,D
ROAD
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EXlSTlNG PI\RKING -r WINTER LODGE
EXISTING PARKING
NEW PARKING
FIGURE 2 POTENTIAl FUTURE DEVElOPMENTS
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. r-l(;,'!"':k"'~~\ ~:::-:;,tt.ft5;!:~~/. -Y~i!r,~
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FUTURE RESTROOM AND COVERED PATIO/SNACKBAR LOCATION
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--:. .. "'.~"""-~"-:' ~ .. ,,-., :.::,'I'r;! .~~.~:'>"(""';: ;':'!~'f""ff!~f-\~ (·t::~,\':t-:-~~-' "?'~J !";'~;~":">t,~~a;~~ .. ...,.\::,~~r"r ?'.t,~\.'7""_f\'~'_~'_~'I);~ 7":':.1".' ~"<''':~''' :"t'f~: f<":'C<\" }.
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.\ , CONCEPTUAL VIEW OF RESTROOM AND COVERED PATIOISNACKBAR FACILITY
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.... ,'.,
Pro -tfl.SOO$:
Tournaments:
e Commllnq-Skating. Inc.. ®
P,Ojected Tlnnis "ogI'''"TI lneome
Thrft 3-WHk skill de.:elt;pmeni: s.euions t.runl! 1~ to August 25thf
Fifty mlnutelessons. twice • -.nek
F"~ shJOents per i"lstr.JClot"
four avdable courts
lesson FiN: $50 P'2' session
ll$$Otl im" t~OOam '10 12:OOpm, 2:00pm unti 4:00pm
MaUnurn St'.;dents p ... $um"t: 1 SO
Ma.lYmum l.tlSstm Revenue: 3@(16O!<$SOJ=$.24.OCoO
~d fievlilnu8: $.24,000" 75% = $18,000
OuOng:1he non-s;ummQ( sease-n. Ies.on.s wili be offered O~.
demand basis 10 irldMduals Ot SlTIalI eTasses.
Esrimated RevQnue: SlOfpriYafe lesson;
$5OJgroup 'tes$on. twi~ iii. Wri!c for" 'llJr3.
ecp.ctsd Revenue: $2,000
Key -er\try s~{Qm
Fall. Winter '-Spring Hours: 6:30am to f:3Opm '7 day$/wfl:
$.oJmmer Weekend HOl.Irs~ Same
Summer-Weekday Hours.: 8: OO;£:m to cfartt.
Es'funa1e-d' Re\lenue: 100 k'5YS @ S 1 DO/kay
Expected Fleveune: $1-0,000
.Focr eourts are riot an kfeaT eonfiglJtaliol'l but until SEJC:~
time as the fifth !:Our! is buitt. Jour .::::ourts wiII be reservabie
fortcumam~;lay_
Tournament Fee; 525/ per court/per iJa,
Expec.led R.eYenue~ S1.00Q.
Community Skating t~.
Ptoiect!!!d Tennis P;ogram 1n~me
P~oIecte-d Revenue:
Slimmer l@$$ons
Other Lesions
Keys
Toumarnants
Total R evenLle
ProJected Expe!lu
Teaching Satarie-s
FIR Tax .. & v.'C Ins.
P,a-Fee:;.
Key Syslem
Annual Court Upkeep
Annuo1 Lo! Up~eep
Offlce Experlse
Annual Arr..ortizaoon
r olal Anua! Costs
Esfimate-d Oeftcit
Court Refurbishing
FotI1 Co .. "
r otal ~efrb Costs
Ann .... al A.'1'IorUz.ation
1 MOO
2,000
1'),000
11,500
3,000
2,000
2,500
2,000
3,orJO
1,000
9,500
~O,SOO
19.5OO!
60.000
35,000
95,000
9500
.:.>;--
~ "
AllACHllENl t o MORTON
&-A~50CIATfS
• • •
I'Jo1 SHE"\4"~ II. Iii.
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r,o,lO ,o,\.TO C,", H"",
r"J: of I' l! J ) I H
41' llJ '''Ii~
NO'I{ell\be.t 17. 1.9 94
Board Of Directors
Community Skating, inc.
300S ~~ddlefield Road
Palo Alto. CA 94303
Dea r Soard Mem:be rs :
At your request:. I am responding to a q.lestion raised by City staff
regarding the f!nanciGg of ~he costs for the park~ng and la&dscap~
improvements plus the financing cf the addit[o~al costs needed to
~efurbish the existing tennis courts at the former Chuck Thompson
S-.. im a. .... d Tennis Club~
Community Skating, Inc. pres~Dtly has the capability of firuL~cins
the site ~05tS from its current operating surplus. Per the ~ion
approve~ by ~he Board at its Nov~~~er 17~ 1994 s Board ~~eting. CSI
will purchase a $10'0.,0'0:0 six month T-Bill to provide a reserve for
th06e site costs.
Based -on tiie operating surplus generated by t.he p:r-ogram during
fiscal year ended April 30 .. 19.94 .. Comrnunity Skating .. Inc. should ~e
in t.he position to fund the tennis court refurbishing frOOl. the
operating surplus projecc.ed during the up.ccming lease option
period. If &ecessary, the Board could negotiate an extension of
the $25~~OOO line of credit it put in place to fund a portion of
the costs of the en-closed teaching x'ink.
At the Bcard"s request, I have drafted this
with the Board's application to lease
~~lefield site.
letter to be submitted
the balance of tbe
The financial statements of Comur.rrdty SX:at.ing~ Inc. for fiscal year
ended J.,pril 30 .. 1994 will also be submitt.ed in coajun-ction with
this letter to support of Community Skating. Inc."s financial
ability to -complete the lien conditior~.
RegardS'~
.Jack Morton
Certifi~ ?~lic Accountant
, : '
.>,:.-.
~~~ITY SKATING, INC.
(.'CMPILID FIIIANCIAL STATEMElIT S
April )0, ·1994
Board of Directors
Community skating~ Inc~
Palo Alto, California
---,
o MORTON
... "-SSOCIATfS
"'CCO",' ~ T .... 'i c.,. '::0 l ~o. A TtO!lll
• • •
"tI '}lEIWAN AVI
5 tll T Ii I
PAl.O .UTO C" 9+'()1Ii
fAI 411 llJ JJZ4i
4IS]Z].CIIIJ.
We have compiled the accompanying statement of asset~~ liabilities
and fund balances of Community Skating~ Inc. as of ApLil 30, 1994,
and the. related statement of rev-:.n,ues and expenses for the t'Welve
months then ended in accordanca ~ith statements cn Standards for
Accounting and Review Services issued by the American Instit~te of
CertifieQ Public Accountants. We have also compiled the
aCCQmpanling comparative state~ents of revenue and expenses and
variable boOget state~ent ot income which are presented only for
supplementary ~~alysis purposes~
A compilation is liDited to presenting in the form of financial
statU!ents and suppleme."ltary statements info,rmatio-n that is the.
representation of ~anagement. We have not audited or revie~ed the
accompanying financial statements and supplementary statements and~
accordingly, do not express an opinio~ or any other f~rm of
assurance on them. A principal of Mo-rtcn , Associates is a
volunteer director of Cc~unity Skatin9. Inc~ but his se~ice to the
organization in this cap~city does not impair his independence~
~~/~c'ad:a
Morten , Associates
Certified Pu~lic Accountants
)fay 17# 1994
m CQIIMUNIT'{ SJ<ATING. INCA STAT~OP ASSBTS, LIUILITIES AND'.:fuNo BALA.'lCES
April 30. 199(
ASSETS
Operat;ing Asse.ts
Cash in BaM -B of A
Cash in Chec:kill9 -UniY N.t Bank
Pett7 Cosh
Cash In lIc>ney lIarkot
Inventory -Nota l
Total Operat1ll9 ~sets
Fixed Assets -Note 4
OU i ce EqU iPl'ent
Refri9.r&ti~n EqUIPl'ent
Ice Cleaning Equipment
Sound System
Bleachers.
Leasehold Improvement
Rinl< Expans ien
Total Fi~ed Aseets
Less Accumulated Cepreciation
Book Value ~f Fixed Assets
Other Assets
Casb in UNS -Lease Deposi t
Caeb in ~~ -In~~ance Deposit
Water Hete," Deposit
Total other Assets
TOTAL ASSETS
$ S8L 92
144,143.74
BOO.OO
152,.232 .... 5
6,0-0-0.00
9,213.56
2 ..... 996.80
17,.949 .. (10
4,,707 .. 91
9,,381 .. 60
3!"OB1.34
505,584.(8
S·09 .. 914 .. 69i
(122.525.88)
S.( 0·00.0·0
11,. 5·0'0 .. 00
36.49
LIABILITIES , FL~D BALANCE
Operating Liabilities
Line of credit -Note S
Total Operating LiabIlities
Operating Fund
Opening Fund Balance
CUrrent.Depreciation Adjustment
current Earnill9s (Loss)
Operatiog FUnd-Closiog Balance
Fixed Asset FUnd:
Open 1ng Fund sal ance
CUrrent Depreciation
Fixed Asset Fund-Closing Balance
'l'O'rAL L~ABILlTIES , FUlI1) BAU.NCE
$109,166.51
74,,1aC~82
27.636.0'0
.10B#710~21
515.,024.81
(21.636.01l)
'The Accompanying ~pil&ti~n Report and the
Attached Nctes are Integral to These Statements.
"-"
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$303.161.11
487,388.81
$109,166.57
$801,686.(1
0 aMUtl!l' sa:Al'tN .... t.e. ..Q. (CMpAllAT 1\4 IHATEXOr 01' REVfJi'"ES JlIItI
'or the r.-I,... 1Korlti'1I1 ~ Ifrll :sa, ,,..
et.rrllOt ~t1I C\Trtnt lIb"ltfl lIiff .... ent_ Tut-to-!)atl
TIIfl leAr Wt Tev ni. Tn,.
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~~Tarw; S .... S 5<6.00 • (56.Lil.OD) S ".00
IuM ""HI" S .. ,o,.0!11 !>S." 112.00 '.587.00
.',.te .ldlI:uim '.4060.CC' '.n1.OC (1 .. 261.80) 1.23,Z97.t5
It'-.coo.m Adatss, an t95.QIl "0.00. as.OO D.nI.!KI
Slut. kntats 1.17J.OO t,506.DO (D3.1O) :9,290.4'
teuon rIteS '~Gt1.25 '.m.oo 1,D4.~ :16,763.7.:5
Party 'ftS Z.041.GG '.2P1.OD (2.8i04.OCJ 101.751.29
~ "tu :i:n.::o. . .,.'" (1,712.!9> 1:665.;" U,067.all) Z .. li'iiO.1J.
~~1'nJ. .,c . il4.DG 209 ... .... ' .. 100.71
....... 'Ucdor (20.'X)) .... (lO.OD) (S1'O.bt.)
:;:"tertSt. ,!1'S.65 3 ..... C1U.Ul 2.Y5.J6
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fonl I<vcnuo lO.2.6d.1!1 2l .. J19.M 0,19.15) 526 .. 0G1I. 3a
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'~ff CCIIP'f"I'lriar. 111 .. ISIJ.4! 19.016 •• ' 6".1.7 lQ9,5U.51
~Hu -S<::M:du~. ~.'O ~~".oo. (1.~1_1OQ) &,~.t.9
.f-rr~ t E~K • $died' J .. 376.91 l.5501!1.3a (t8t .45') 27.60Z.?4
tltTHtfes S,2lO.'N. , ... 7tI.~ "".SO 26,S06.41
luflcfil1Gl C~tI -SdJed .... H.~'.'~) 1.""'.'5 f,S91.06
t'lfipt'lelrt C~t5 -'Sdl~ J .. lSZ.9CI '.1!9J .~ (1.S4!1.7'I!) ~.JO';I.69
AdYe.'"tisT., l'roalOtl!r. .... .. " t." ' .. Q6I.3Cl
.Print"ir.cl .US .. ,. SI.tS ',OJ.9.Z2
P3~"" .& lIl.ili." .... .... S.'" !Sa.co ..... ..,,, '.IJ!I .... ',m.il!
lr'l5'laN:. -~~. .... .... ,.,. 17.!i99.9Q
FH$ ..., s-rvica -S.:fot6 S.6$.~ 1,332.0 ',.lS130 18 ... ~S.307
~r~ -Sc:fled.l!. 1-.~51 S .. 441.!1 [4,1aJi.2'} '6.~.36
.1W'1d •• 'fur ~ .. ,. .... .... .. '"
'ir.t.uat £~ 611.\.1 1,QS4.n t3,.'"7.60) 1(1 .. lQQ.16
r.·ttpliant 813.«2 J1'2,~ .... 11 '.Sl1.~ -----
Taul iJrper'$o.& 4C1,563.a5 4!.'1~Jl'S.tIZ 1;'3.13 3IJ9.~.17
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hpr'eci.ciQrl (I,W.DO} a . .4C9.DD) !06.oo (27'.636.DIlJ
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EJltist. Of" RE'lE~ tJw"U; ElO' "t{22 .. ~.!.4} S-t'4.\UO.'6} , ("&."t4'.~} S·,OS,7'ilJ.2'
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Tear;ta·~'I. "fhranc.~
lut Ta>""
I "".00 S (t.11.oo);
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ft.1:45.t2 2S.'t4.!I.a
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2!i.m.:lO ' .. 511.4.
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99 .. 222.25 2 .. S29.~ '.152."" 1!31 ...
2.7U.tS 159.56 ..,,, 61'O.64J
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423."'5.25 )1.9063. '!3
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202:,887...36 ' .. 69&.9S
6.90.2.78 {ZSI!!.~
J4.414....R (',EH.SII)
39,5><;.17 (13,1)I',].1't»
1.7. cas . &I! (10 .. 497.6Z:>
25~ t79~ ~5 HI,13lJ.54
1.112. Hl d,D60.8U,
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143.97 ,!1".09
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n..~.2& '.Dn.62
10 .. 2.77.$2 ',267.45
2l.m.Z2 cS"m.lI6}
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' .. 420,1(,.4: 161.26
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S 57,494.'" S. 5! .. 2'S.n
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t) CXMUtIT' SlCAllkC. flii:. ~
SlATDIEXT or I£'\I£)Q .up P.PE~sa U~T MEOl.4J!
For tM r~t ..... ",,"".fit. E/'J6e.d .4p-i t 3'1,. 1m
t~r.nt fIont!l CUrrri ...,tII D[ffl1"ll"C4' Tu".· to-llate
TIlls r..,.. Lan .1ur rhf' "'ar
W£S IItCOE
Ibt .. $411" • 115.01 • ".00 • 118.CG • 1'~l¥.&S
COllI' of 1Ut.s (Z,I63."J4) (1,«30.84J (1.1ll.5O} "' .. '11 .1S)
In Rite 'Cal .. ~.67a.:54} ,95'.14) ,'.m.so, ''',19:. 27J -----
Ac:cftI:cry s..t_ 945.45 1.~1.71 (298.D) l,l9S. \7
'«It cf AcI:IssGrfH .... (PS2,.~) 95> ... O .. C32.9C)
-..:~s.rn ...... S m.8J .... 6l 5,165 .27
y..n,. to.luTan .... .... .... Z,317.l"3
Je.1; 'd .... 't_ ,.eo .... t.,. 2.117.n
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lift--s.1 .. I~ S ('1.7l2.8'Q). • (US.I)' ) I (T,W.Be) • 02,690.71
IfNE1n,
10\'& ~vc. • .... '" • -... • (V'.90) • S .. Q'''_~
truu:.I"EiI(iIDYH • .,.ffc. .. ., ...... <Q'90.CiJJ '.'7'0.09
Toat ~u. • 361.1' • ... ~1'6.oa • C'l,OG7.90) • 6 .. 6&4.49
'AYItl..1 EQlEMSU
$oc;;ai $eCW'fty • JJ 31!." • J.!5&.Je • <181.'S} S 16.Q2,f06
VOrbrs-' -t0Cllll' .. '" ..... .... n.1oSa.45
T~\ 1lrytoU ......... J~J76.93. • J~5S1.31 • (IEU.5) S l7~6(l2'.94
The Aa:~i ... Ca.piLatiO!", 'epGr1. II"d the
"n~ lot .. U'. Int...".~1 to Tt..e$C' St .. t.,...-,t ••
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, '''.142.91 S t3.M.OS)
iUI, '03.~J n.D77.72)
"'.so ('.aM.m
1,344.60 (~.43)
CI,OC'.34} S..,391'.44
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(95.74] 5.25-;.C1
' .. 7'58.28 SSt.4S ._----
'.151.21 559.45-
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• 1.7'52.04 • 9J.8 .f9
• S.ZZ'.3l • t204.92)
'.1'2'l.l.6 CST .31) ----• 1 .. 942.711 • (25S.29}
• lZ.?23.7'6 I U.SCrt.SO)
15~fl90,56 ,4.51C,06)
S 34.41'.32 • C'i!i .. EoH.3&l
MLl:flfG OXT'
lKfUt)' t .... • 'l1p!r , _fnt~
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trUlPIEJrf CDilS
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Diffet"~.
.... • .... • .... .... 10";'.'-6 (t.91.46) .... (2. t31.P1) Z. t31.91 .. ,. s ,1,e.U.4S: • 1~6(1.'5
..... • .... a93.M , ~4,asa.8Q)
rur· u-I)st.e
This 'fur
• '.000.00
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• '~591.06
s tS~%l~94
r,..,....to·g .. r.
last hoar
• .. .,
M,9l.L91
O~151.~J
• 17 .. C8S.68
I l5~tn.u
Equf.s:-"l C .. ir/MItlU:r.nIi1C ",3T!I.~ .... J~3U!.D4 19~Jt.l.~ ....
-ht.1 ~~ CcsQ •
:1UWA»Ci
"illbiH~ I~e •
11r-.ctCM"'. rrw:ur..-.:e
li.n , CKlAI ty Ir"IIO\I";nc1t
Tot.1 tnlur .... e: •
lEU IdG satVttU
"~~l;_ • ~0U'rt ing Fees .... .,.,.....
rUA r ...
~t~ 'NS
Totat 'ftS .-.f Servie-t S
-". CffJ-e. I[JIpIftse • "l'OliiI~ s...wtia.
ap.r.t"int ~ fes
liSCl'l[...-
lohl ~les •
----------
:J.lS.2.90 • '.&13.66 f (",~.1b) S 35,309.69
.. '" • .... • '.00 I t2~I!54.30
t." '.00 .... 4(, ~!t
t.'" '.00 t . .., '.7D',~
'.00 • .... • '.00 .. V~599.';O
172:.60 • '~.1l • ..... • l~&.;a.6Z' .... . ... 1.00 2,&15.1iIl"
'.1'99..21 .... 30 J~1P9.95 1.211.73
7 .... 1.'92 .... 7t1.9Z 6".610.c,z .... &!a'.r. CW.D1) '.00 ----------
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765 .... 641.12 12'-''' '~5:;tl.66
49r4.tS 19C.7? 303." J,.!2t..25
l.~.S1 , 5.'-42.11 J. C4.1C.2Co) , 16.2&1.36
The ,I«CIIIIp5t'I)-II'S CCIIJI.t .. tiW1 lII~rt and the
,lttacfl~ 'CI~n Irll! Intag"t tCl rhtsr SUtll5ller"la.
• 25. ~?9.15
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, 22~fI32".22
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.. 10, no. 54
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• 288.111
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V .... IAJi..E Il.l.lIi£l STAT~ .. r Oi' 1.aME
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kt .. l ..... ' Act.,.,
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.>KCP\t """"Ton 195 .• ..'" 115.00 !l.DI:.D9
Sbt ••• "u(. I. \:"3.GI .. " '.17J.OD 53,290.41
tll'UM fll'ft IZ,e21.25 .... 12.Cli.i5 216.76].21
Party 1 ... I.W. !JCI .... 2.W.OO 1(l1.7'5'.~
In SIotes lncC81' ~ SdIecr (t .. 132.M'l '.00 <,,-i"302.8'9) 2.~.T.!
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-----
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luff CaupenllltflP. 19.m.a ,.s.~.oo (697.48) 21)9.~.51
1000fi u -khe6.lfc 360. " .... (W.lO) '.634.1,9
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lui l d'i,.,. c"s<:s. -Sefteo6 .... 1,663.00 1~iS6..."'l(lo 6.S91.0:S
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~f" • ScM4It. '~.s.7" ~,a37.OQ W.U 16,260.36
Intlf'est Expense 6n.17 I .. ~.OO 572.53 'H! ... 390.16
ht~ 'n.w. m ... (536.<12) ','5-8' .7'It
T .. utE~ 48 .. 541.15 55, Ta5.DG (S.3S3.!!!=) 389 .. U2'.17
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TaUl Otflv I~ I bp (iI.5!3.QOJ .... (2~3Ct3. 00 J t21,61O.00l
-----
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The It:t;~i,... CDllflHatlOtl lepcr-t and V\e
attACfled lote:< .... Integ:rlt! to The"i-e Stetl!'lfltl'1ts.
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3:,000.00 1.na.~
l5 .. 000.00 1 .. 290.'1
2OI:I.DOC .04 16,763.21
tOO, 100.1);) J.1'5'-~
:,000.00 61'OL7J
2.SOO.Q.iI .... n .... (S?G.64)
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1 .. &00.00 2,f3I. ;ov
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'.000.00 (lS.OO)
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-----.... (21 ... 636.00)
• 49 .. SOII.nII I 59.:i:iG.Z1
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Co5t Df st.t. C2 .. a63.)4} '.00 <1,86).34) (H'.1!t~1SJ
-----
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.~ Si!'tHI~ S U,13.l.!9) S .... 'J O.~.avJ I 2.1.90.73
IEJlEFIlS
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",4,niOi.l ~S
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·~1C~ .. ,. .... .... 11.180).4.5
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FiR W 'IDVl-CES
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ISU Fee 111.92: .. ,. (7t1.9%:> 6,"~.G2 -----
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Atudled .O'tH '-l1li lntew-.t to These St.~eIW'IU.
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0.0<1 (2: .. 111.29)
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i
!
o 0
NOTES TO FINANCIAL STATEHElITS
April 3." 1994
NOTE 1: OR<:HNIZATION AND HISTORY
community Skatlnqr Inc. was incorporated as a California
non-profit corporation on Nove~er 18~ 1965 in order to
~tinue the Educational and recreational ice skating
p?oqrams offered to Peninsula children and adults at the
Winter Lodge.
This u.,...,lque recrE:ational facility, formerly l'"~med the Winter
ClUb, was constructe~ in 1955 by Duncan Williams, a
professc~ cf e~inee?ing at San Jose State and a native of
wisconsin. Th.e facility incl'ildes two separate ice. surfaces,
an outdoor-public session rink and an indoor lesson rin):. A
large overhanq roof I stretching between the ·club house' and
the retriqeration machine loom, shelters the outdoor ice
rink, for part, if not all of the day. and permits the rink
to be cpen seven days a ~eek from September through early
May.
community Skating r Inc. ~as the successor ~rganizatior~ to
the Trust tor Community Skating. a volunteer group formed
April 11. 19B3 to prevent the demolition of this popular
family-oriented recreation environment. After neqotiating a
postponement of the demolition, the Trust acquired the
facility aDd equipment from Hr. Williams and, t~o years
later, in February ~9aSI qualified a ballot initiative
authorizinq the City of Palo Alto to enter into a lan~
exChange for the facility. Tbe ~llot measure was
Clverwhelminqly approved by voters in November 1.985 'With the
provision that the program continue Yithout city funds.
After ~e exchange vas completed in the spring of 1$87, the
Palo Alto city Council changed the land llSe. zoning of the
~inter Lodge parcel to that of a public facility and fo~ a
Oi.,e-tille pap.ent c! $10,0, appr-oved a 20-year lease with
Communtly Sk6ting, Inc~ to operate the Winter Lodge as a
community iee-skating facility in conc~rrence vith tne
voters' mandate.
Public skating admissions from allover the Peninsula exceed
20.000 per se.ason and each year some 3,~OO preschoolers
through seniors fr-om S~n Carlos to San Jose enroll in a vide
range of classes from beginniT~ to advanced. There are more
than 12.00'0 dedicated ice-time adJ!issions annually vhich
include $pecial needs groups (such as the emotionally,
developmentally" or phy'sically handicappe<j], school physical
"'.'
'.
COKMUNIT¥ S~ATIN~" INC.
BOTE'S TO Fl.NANCIAL S'I'ATDlEN'l'S
April 30, 1994
!lOT!! 1: ORGAIIlZATIC'!f Ml!) HISTORY
educat.ion clllsses" brownies" scouts" and other youth o~
church !jt"<'IJPS.
NOTE 2: SOHKARY OF S!GN!FICANT ACCOUNTING POLICIES
The Corporation operates on a fiscal year ending April 30
and records incooe and expenses on the cash basis of
accounting in aocOraance with the principles of fund
accounting. All t~ansactions are in the tollowinq funds:
The Operating Fund vhich consists of unrest~icted current
funds over ~hlch the Beard of Directors has discretionary
oontrGl and with vhich the organlzatior. carries out tha
ac~lvltles described in its bylaws_
Restricte~ yunas vhicb represent resources expendable only
for the purposes specified by the do-nor.
The Fixed Asset Fund which records the cost of the land,
building-and: equipment" net of accumulated depreciat.ion_
NOTE 3: XIfVEN'l'ORY
The Winter Lodge maint~ins a CQnstant inventory of rental
skates and a small inventory of new sk~tes arA accessories
whicb is reoorded at management's esti~ate of the aggregate
aoquisition cost.
NOTE ,: FlXEP ASSETS
Office equIpment" refrigeration arA other equipment plus the
leasebold improve_ents are recorded at cost and depr~cioted
on a straight-line basis over 10 years. During the S~mer
of 1991, the indoor lesson rink vas demolished and replaced
with an expanded" e""lClosed structure and the office space
and re&trooms in the club h~~s~ vere re~eled and en1arged.
The rink expansion was funded by funds; accumulated in the
rink expansion fund and by a line of credit from the Sank of
America (See Note 5., below). The cost of tha rink expansio..'"l
is ~1ng depreciated en a straight-line basis over an
estilDatec.! 30 year life. Onder the terJiDs of t..""le lease with
the City of Palo Alto" the fixed a$Sets become the'property
ot the city but th~ obligation to ~aintain the facility
re~ains the Obligati~~ of Co~~unity Skating~ Inc .
. ,
· .
COMMUNITY SKATING, rNC.
NOTES ~~ FINA.~CIAL STATEMENTS
April 30, 1994
NOTE S, LINE OF CREDIT
The Corporation has a note payable to the Bank of America in
60 monthly p~incipal installments of $4,166.67, plus
intere$t at prime plus 2.5 percent. The note is personally
9Uara~teed, 00 a pro-rata basis, by five individuals who are
either members o~ the Board or resid~nts of Palo Alto~
NOTE 6: COMMITMENTS
In accordance with the intent of Measure A, passed by t~e
voters in ~ovemher 19S5~ community Skating, Inc. has a
twenty yaar6 no cost, lease vitb the City of Palo Alto. The
lease, wbich expires in May 2G09, contains a 10 year renewal
~ion and requires CSI to Eaintain a security deposit of
$5~O~. This deposit is beld by Universi~y Nati~nal ~nk
and is reoorde4 on the balance sheet under other assets.
The terms of the lease comait Community Skating, Inc. t.o
operate a public skating program and maintain the Winter
Lodge without the use of any funas from the City of Palo
Alto~
NO'l'E 1! nlCOKE TAXES
comm~~ity Skatinq, Inc. is e~empt from federal and state
income taxes under section SOl(C) (3) of the Internal Revenue
Code. and under the related state provisions4
':.-,,..
AlTACHMENT 0
SUMMAR¥OF ontQN TO LEASE
between Ihe City of Palo AlIo and Community Skating, Inc.
Co< th< fo<mer Cb!IC1i: Tbo!JlP'lOll 'fir at 3005 Mi<ldIefiold Rood
Cgnditjpp, of die Ogtina
l'rio< II> exerc'.sing its opIloo 10 Ir= Ihe property. Communi~ Skating, Inc. (CS!) mllst satisfy
Ihe following condition.:
i. Pay th< option pu!clIase price ($1,000)
2. Submit schematic p1.ans Co< the project wi1llin six (6) monlhs .rth< eommencement of til<
cp6on.
1. Obtain approval of. conditiooal .... permit {or th< ~ cicvelopmeDt and operatioo
from !he CiIy's Zcolng Administrator.
4. Comply with all requiremeDts of the Cafuomia Environmental Quality Act (CEQA).
s. Obtain "l'Prova! of its development plans b: Ihe enIize project from the Arobite<tural
Review Board (ARB), P1snnIDg C<Jmmlssion an<l City Council.
6. Obtain approvals from the City .EngiDeer and Chief Building Official of C<lnslzuc1ioa
dnIwings., inc~.oling Ihe C<lfISIrUCtion r.ootract b:m and proposed eonstruction ""heduJc.
l! property is p1wed. d>is req-.nr.m.mt &ban apply only 10 PIwe I improvements.
,. Provide evideoce 10 Real Property Manager 1baI ;my and all permits from my agetl¢ies
having pre-<:onstructin jurisdiction over the proposed development have been aut!rorized
and arc available.
I. Saiisly !be Dir<ctor of rmaacc \bat optionee has sufficient finances oc financial
commitmeDts 10 implernenltil< project .. approved by th< City and furnish 10 Ihe
o;.rocto< of Fwance ~ 1h&l suffieienllinancia! se<Urity will !>e "".nable 10
eonsInIct the project Ifproje<:! is p/lased, lhis r<qUirement shall apply ooIy 10 Phase I
improvements.
9. Optionee shall enter into lease wilh Ihe City {or the poBinll ar<as \0 be lISed in common
by patrons dille proposed tennis f8cility and 1he cxi<ting icc shting rink.
..
-,!,,"~'
ICf'PH of i\c , Use
IEMQR' City of Palo Aha
l}'NANT' Coa>.munity Skating, Inc.
PIIEM!SF.S· 3005 Middlefield Road (fonnes Chuck ThomJ"lOll site)
p]lRPQSE:
The pu<pOSe of !he lease is 10 provide lOr !be development and operation of. recrtationaI !ac11ity
offering II:nnis lOr public play and instruction.
The term oflbc lease is 15 years; however. at !he time the <>:>600 is e.e",is«!, term "ill be
adjusled downWllld '" mat<:h the remaining !em> then r<maining "" Tcrumfs lease fOr !be WInter
Lodge .Ite (current W"mter Lodge leaset.:ml is 14.75 years. renanthss an option 10 extend the
term of the lease fOr 10 Y""" under certain rondItions.
REQUIRED: Throughou!!be \em! of !be lease TENA."''T slJalI provide tlJe
fullcwing services and activities:
... pubiic recreational tennis factlity including tennis instnJction (group and private
lessons) andfor scheduled pubiic lISe.
B. PERMllTED: In addItion 10 !be required uses, the IOIIowillg uses shall oIso be
permitted.. but only os m.:identallo the required uses:
I. Scll<duIed pubiic IlSC: of courts may be tl!roo~h • key entry program
wherein keys 10 the COW1S are leased 10 the public fOr. fee.
2. P<riodic US<' of the Pmniscs fOr tennis !oUmamenIS and other orgaw7,ed
tennis events..
3. Fund ralsing activities ooJy 10 support the required semce.. activlti"" and
ll><S, m.:1udi.'18 but not limited 10 !he hosting ofbenefits and so.."iaI
a...-ti\oities...
C. OPTIONAL: Subject 10 ihe prior ...ntten approval of the City Manager. tenant
may pro>ide additional services and uses which arc anc{]lary 10 and compatible
wlth the n:qui=! uses above.
," .
.. -.
~-
D. PROHIBITED: Any """ not1isted .bove under teqtili<d, l"'"llitted 0< optional
uses.
mNSIPEB A DON/RENT·
A. MooeIaI)': Upon <XOCUJion oflbe lase. TeDAnt shan pay City SIOO for the entire Iem1
of!be lease.
8. Non-mooetary: TenanI ~ 10 operate at not cost 10 the City & publi< tennis facili.ty
CODSlstenI with the pu<pOSe5 and mjuired and permitted uses culli=! in Clouse D and
Clause ill of this lease.
SEQ!IUJY pEPOSIT' SS;oC>OO.
CONTROl· OF HOURS, PgICES AND PBOCf-P! /RES'
CiIy may _ operaIing hour.!, procedures and prices 10 ~ that they are fair and
reasonable 10 :he public.
BFlllIIRFD IMPgQ\'EMENTS m BE MADE By TENANT·
Required impro~ L'"C those improvements MUck are identified and shewn in the plans
awro"'Od by !be City :luring !be option period. Improvements may be pbased. ~rmimum vahle
oldie improvement. ill $100,000.
CONSTBJ rTfQN' OR ALTER AnoN By TENANT:
TenaJJI may DOl make any chlmges 10 the property without prior City review and approval.
T_ sbaIi be responsible for all mainIerumce and ropair> including all tbe parking areas.
ASSIGNMfNTSISUBl.fTIINCr:
Any ossignmeut 01: """,.unbraoce of the Ieasc must recei.-. prior City approval.
!NS! !RANCE;
Tho _ sbalI m.mtain ir15urance meeting lbe City's standan:I require"'eots for m:,"urance
protection.
TeoanI sbalI be responsible for all costs for utilities and taxes and assessments lOr the property.
AIT ACIHJIT E
Proi~t:3Qn, Middlefield Road· Tennjs Center,
Community S~atlng, Inc.'
. This ~ is made this __ <lay of ___ , 199_ by an.j between the City
of Palo Altl), a lII.IDicipal corporatj<>n, ("C[n") and Community Skating. Inc,. a
California non·profit corporation {"ueTIONEE").
RECITALS
A. tlTY owns property loc.ted in the City of Palo Altl), Santa Ciara County
coomonly referred to as the former O'UCk ~soo site (" PROPfRTY') more
specifically described and sha.Tl in the lease atta~hed hereto as Exhibit
!. ""'kft (><hi Pi! 1s made a part he!'€Of.
8, tITY. in CCI'l>1iance 'tIith Its Policy and Pr~res 1·11. iSsU€<l • Request
for Proposals for an option to lease Property and received a prllpO$<ll fran
OPfHlH£E ""'fch has been sel~ted by the City Council.
C. OPTIONEE desires tl) obtain an exclusive Qptioo tl) lease PROPERTY, in
accordance ,.;th U.e tenllS and cooditioos of t~.e Lease attached hereto as
ExI1ibit I.
D. CITY desires to grant an excl".,;ive option to OPTIONEE during ""'ich time
OPTIONEE shall develop »;>eeif;c plans, obtain financir,g, and Silt!sf] <>tree
conditions set forth prior to the leasing aM de"ellJlllllellt of PR(»ERTY,
Nl)i TH£RfFffi£, in consi6erat'or of the premises set f()l'th above. the parties
hereto I31Jtua 11:; agree as fo 11"'5:
L 6RA'iT fF OPHON {Q 4 0) S
erPI hereO) grants to OPTIONEE an excIus"" optIon to le~se the ffiQp(RT't and tn
develop aM operate PROPfRrt upon the ter"llS and subject to the covenants aM
Rfl!ASO 7111 'IDfrjIS 1
conditions set fifth !leI"" and in the lease attached to this Option ,!q<-eeI1>ent as
[x.~ibit I.
2. TERM Of OPTION (0. S.C) S
The tena Of til! s opt i 00 s~a 11 ~ 24 months and sha 11 cc:mnenc€ upon executl an
. cf tIlis agreement by CITY.
3. PURCHASE PRlCE Of OPTION (0. 6.0) 5
The ptJf'Chase price of this option shall ~ S1.000.00 (One Thous.Jnd Dollars) due
and payable to CITY within ten He) days of the 5i9ning of this ~tion by CITY.
4. CONDITIONS PRECEDENT (0. J. OJ S
This option my not !le er.ercised by OPTlCtlEE un'.ess and until eaer, and every
follow1ng conditiOn has been satisfied:
A. ()PTlONH shall t,a"e IIIolde the payment{s) required in accordance ",;t!! Clause
3 (I'l./RCHASE PRIc[ Of OPTION) abolle.
8. 0PI10Nf[ shaH have suomitted schematic plans (the 'Schematic Plans') to
erN within 6 ronths of the ccmnencernent of this option. Schematic Plans
shall include a site layout of all buildings. landscape developments.
schematic floor plans for all structures. si~le elevations of all
structures. i plan for fulfilling parting requ1rements. identification of
proposed architectural theme 01" style. a detailed description of all
proposed i"""ovemenls (inc Iud i nq proposed uses a nd methods of q;erat i on
and a jleneral outline speciflcation Io!flich ldenti fies pl"CJIlOS€d construction
material and methods). and an estimate of the total construction cost for
~11 pi"oposed illlpfo.ements. ["en if the dev~lopment of PROPfRT'i is
intended to be pel'"formed in pIlases. the Schematic Plans shall irclude all
planned phases of the PROPERTY·sQevelopment.
C. OPT!Ct<£E s~allhave applied for aoo received a conditional use peN'it fO("
tt.e proposed development and operation from CITY'S Zonir~ Administrator.
D. OPIiOOEE shall have submitted to. and shall have received approval of its
development plans (the "Development Plans') for PROPERTY from CI1'Cs
Arc~itectural Review Board, Planning COfII1iissian and City {ouncil. The
Devel<>pment Plans shall include the ScfJematic Plans. jnteriO(" plans.
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structural plans. exterior elevations. and lands.:aplng plans and ~hal\
indicate specific plans and cetails of the resource conservation features
tt) be ir.clOOe<f. If the devel"",rent of the PRO!'£RTY is intended to !;e
perfOf1red In pIlases. the Development Plans sl-<ll1 1nelude and describe a11
the p>-.ases of the PROP8l.T/' s deve 1 oprent. PhaS<! I sha 11 at 1 east inc 1 ude
the i!!pl'o"erents neces5ary to lllake the PROPtRII usable for the required
uses under the teaS<!.
£. O'T1CtH s!la1l have c<Jlillle(j IoIith the California Environmental Quality Act
(CEOO, os amended, and all related CITY proceOOres for i:1l'lernet1tlng CE()/<o
to .11c>< the PROJECt to be i~lemented.
f. MI()l£[ s}.all have pr",~Ged to CIT/'s ~a1 Prq;erty !\aoage.' eV1dence that
any and ill permits (roo any and all agencies t,avlng prE-construction
pisdlction over the propos-ad develop!TEf1t including. but not lireited to.
building peMlits, street opening permits. gr.ding permits and health
permits Mve been Buthorized and are available.
G. OPTIONfE shall have submitted to CIT/'s (tief Building Official
certifi.c.tjon that the plans for any proposed building construction
C<Jll1l1y. i. ill respects. with current !lojilding codes. the federal
Americans vith Visabilities Act of 1990. as amended. including any
impleoonting regulations. and energy cC>nSenation requirerrents as set
forth in Ciliformla Code of Regulations. Title 24 for non-residential
con,tructlon. The form and cootent {)f said certifications shall be in
confonnance vith the requiranents <ltC.lifem;a Code of Regulat ions. Tit Ie
24 for non·residential corstrtiCtion. Should the development of the
PROP£RTY be pIlases. the requHement of this subpilragraph G shall awly
oo1y to Phase I int><"O'Ieme!1ts.
H. QPT!ON(E shall have obtained approval of the constructioo drawings for the
pI'(llOSed develqJOre1t (t~e "Construction Dr''''ngs·) from the City Engineer
and Chief Building Official. Construction Ofalolings shall include:
I. CooJllete ard1ltectura], ·l.tldscape and engineering 'working &-awings;
2_ Ccnt>iete construction spec; fic.lions;
3. Coo;ll ete construct; 00 contract f 0<111: and
4. F reposed construct i on s.:hedu 1 e.
Should the devE10jllr.ent of the PROP£Rn be performed in phases. the
OPTIONEE r.eed onll to obtain appro,,] of the Constructlon Drawings for
Phase I of :he develO\J11lE'nt to €<ercise the option to leaS<! the PROPfRTY.
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l. OPTlOOEE shall ha,e satisfied the Director of Finance or his or te<'
successor position that OPTICt.jEE h.s sufficient finances or financial
COIlJl!itments to i"lllement the pl~ns appr~ed by CITY in accordance with the
abolle. Should the develCJll!lleflt Of the PRYERTY be perfonred in phases. the
requirement of this subparagraph I shall appl, onlJ to Phase I
lcprovements.
J. {flJ(INEf. in a<:cordance wi th Clause r'i nOlA .. '!"' S ASSURANCE (F CONSTRUCTION
C()tl'UTJON) or the attached lease. shaH have furnished to the Directe<>
of fInance or his or her successor position. satisfactory evidence that
asSl.lf'es tHY that sufficient finor.cia' security will be aval1able to
complete t~.e proposed constructioo, as set forth in the approved
Oeveloprrent Plans and Coostruction Drawings, Should the development of
the f>RI)lg(11' be perfC<"1l'led in pI1ases, the requi rement of thi S subparagraph
J ~11 apply 001, to Phase I i'p.-ovements,
~. OPTlOllEE slla 11 ha',e stIDmi tted tc the Rea 1 Pr~rty Mar,ager. a security
deposit in 'accordance with Clause Xl (SECURITY OCPOSlTl of the attached
lease.
l. . if OPTIONEE Jlfoposes to hypothecate the leaseholc1 as security for a loan
in accordance 1iith Clat.'Se XXII (ASSIGNiNG. SIJ8lHTlNG & ENCll".B(RING) of
the attached lease. OPTIONEE shall have submitted to the Real Property
Kanager. any and .11 docLJmef1ts related te> such h,ypothecotlOil and shaH pay
the necessary processing (~S as set forU, in the attached lease,
]>f. OPTlOOEE 5~.an have entered into tease 1iith CITY for the parHng areas to
be used io cooroon by tne patrons of the prQo;>osed tennis facility and the
existing ice sl:ating facilit,. These parking areas are sr.own on the map
CIl pag~ :I (If f.A1ibit B to the tease attached to thi s ~ion Agreement as
Exhibit I.
J.t aOJ time during t~.e opt;oo term t~.at O!'TlONfE has satisfied each and every
coodition precedent set fOfth in Clause 4 (CONDITIONS I'RECEOCNTl above. to the
satisfaction of CITY. OPTIONEE NY exercise this option by 9i.ing the Real
Property Manager ''Titt"n notice nf its election to do so. accOf1I\Janied by two
JlfOllEr71 executed copies of t~e attached lease. CiTY shan execute the Lease
1iithin ooe month of receipt of the request to exercise option in accordance with
thi s' <:1 ause,
1IElDSf.l. T 1\1. TDliIS (
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6. R£T£~ION 0' OIlTION 0' PURO!4.SE PRICE eel 9.0) S
In the event that OPTI()jH does not exerci se thi s opti on 1 n accordance with the
tef1llS hereof. all optfon lOOIlies paid to CITY s.~all be retained by CITY in consid
eration for the granting of this option.
A. Review by City eel 10.11 S
OPTIONEE herebjl aclrnowledges thilt ooe of the purposes of thlS option is to
afford CIfY the opportunity to dete",,;oe ""ether or not OPTIONEE is able to
reet tI-.e ¥arjous condiUons and obtain the required appcovals as set forth in
this optfon. Several of those conditions involve obtaining re,jew and
approval froo officers. l!I!t>loyees or agents of CITY. Each of those re,jews
shall be coodiJcted in an i~t renner ard nothIng contained herein shall
be deemed to limit the jurisdictioo 0'-authority othe",1 se possessed by the
officers. l!I!t>lbyees or agents in the conduct of such re·"ew. Nothing
contair.ed in this option shill1 be deemed to illpl] that the approvals will be
fortocoofng. and the fanure to issue any such approva1 or permit by any
offfcer. l!I!t>loyee 0;-agent of CITY shall not be deemed in .fIY manTer i breach
of this eption. nor shall any such denial give raise to any eTai"'. liability.
obl1gatlon. or cause of action with respect to this option or t"" attached
teii5e.
CITY agrees to consent t~ any appiic,tion by OPTIONEE .. ith respect to any
permits or approvals related to acti.ities or improvements approved by CITY
in acco;-dance witn the option .,t,\ich may be required ~J any 9O'Iernmental or
other regulatory agencies aside froo {;ITY.
B. Assignment Prollibited (ex. IO.2} S
This option has been awarded based on the bac~ground and preposals of
OPTIOO£E; therefore. tois CiXion cannot be sc1d. assigned or ot~erw1se trans
ferred without tile p<"ior written coosent of CITY. Failure to obtain ClTY's
required written consent Shilll render said sale. aSSignment. or transfer
vOid.
C. Extension of Option (1!.3} S
.Upor. "ritter. request of OPTIONEE stating the reasors therefore. the City
Manager. or designee. may. at Ilis or Iler saTe discreti()(l. extend the tero of
1Ifl.E.ISt5.1iIX.ID'fG
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toi5 option as follows:
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1. City Manager or <lesigne€ .,ay g .. ant an extension of the term of this option
for i rea 501lab 1 e per i od of t i • ..,. as deteemi ned by the City "anager or
designee in the event llI'TION£E is <!elayed in fulfilling the conditions
(l(ecedent to the exercise of this option ty reason of anj cause not tOe
fau1t of. or lo1thin the reasonab1e control of. OPTIONfE or its agentscor
employees; or c
2. City Manager or designee may grant an extension of the term of the option
for a period not to exceed ninety (90) &!ys. in the event OPTIONEE is
~elayed in fulfi11ing the conditions precedent to the exercise of this
option for any other reason. lIow<e.er. the City Manager or desig_ 1\131
grant such extension only upon the follcrwlr>g conditions:
a. Wrltten request for such extensioo shall ha;e been delivered by
llI'TI()IH to the Peal Property Manager at least fi fteen OS) days prior
to the 'e"Piratioo of the option terti;
b. Payment in an alllOUf.t equal to $5(lO.O~ (five hundred dollars) shaH
be su!lmitted t(} CITY lIfith the request fO<' extension referred to above
(in the event an extension is denjed. CITY shall refund said amount
to OPTHJNEf c ); aoo
c. llI'TI~H shall submit. toget~.er with its request for extensioo. evt·
dence cf its (l(ogress tMrcl fulfill i119 the conditiors precedent to
the e><erclse of tMs opt;(.(I. docurentation of its (l(oposed actions 000
feasi~ll!tl of satlsfyfr>g the conditions within the tern <If the
e.<tef!.sloo requested anJ such other infonnation aoo IIlaterfal as may be
required by the City Manager or designee.
D. Terllinatlon of ~ion {CI.. 10.4) S
Failure of ()IlT!()IE[ t~ satisfy the terms and conditions of this option f,;l1J
100 satisfactori11 lIfithin the time li~its stated shan absolutely aod
conc1U$I~lJ terortnate OPJJONEE'S ,-;gIlts 11ereunder. Upon tel"1lljnatioo !-.ereof
lo1thout exercise Of. the option by OPTIONEL llI'TI()IEE shall. lIfit~in 5 business
<lays of receipt of req.JeSt from CITY'S Real Property Manager. deli."r to CITY
a properl1 executed Quitclaim Deed ~uitcla;mi119 anj and .11 interest io and
to PROP£RTY.
Executlon of the lease by CITY arod OPTIONEE substantially in the for.o of
'.
o
£XI1ibit I. attoched l1ereto. shall be de_d a termination of this Option
Agreement.
E. OPTIONEE'S Right to Enter (OL 10.5) S
CITYl1ereby grants to OPllONEf. its agents. eo;Jl oyees , and assigns. durlrl9 the
te ... of this opt>on or any extension therevf, the right to enter said pr~rty
0<' any portion thereof at reasoratlle times fOl' the purposes of coroductfng, at
OPTIONEE'S .ann c~t arod expense. such sei!. geologic. and engitleering
investigations is my be required by any ~Jblic agency required to approv2 aflY
subdiYfS!OI1 or development of PROPERTY by OPTIilNfE. OPTJOOE( hereby agrees
to indemify CITY arod hold CITY. CiTY's agents and employees, free and
han&less from any loss ()I' liabllHy incurred by feasor of such investfgation.
Should this {)9tion be termir>ated, cpnONEE agrees to repair any and al1
damages cause<l to the PROPERTY by reason of an;! such Investigatioo 01'
investigatfons.
CIH. at the sol. discretion of the (ity roanager or designee, ray revlre that
OPTIONH provide evidence of insurance coverage in the amounts set forth in
Clause XXI (lN5URAHCEl andfor a securlty deposit tI,) to one·half <>f the amount
set forth in Clause XI (SECLRIT'I DEPOSIT) prior to an;! sell. geologic or <>t~.er
tests Of' investigations 011 PROPERTY by DPTlCtH. its agents, ~loyees or
assignees.
L Notices W .. iD.6) S
MY notice. tender. or delivery to be given in accOl'd.nce IoIith this option by
e\ther party to the other sl1all be given in .ccordance vlth <:lause HIll
(NOTICES) of tile ilUached lease.
G. Ilep<'eselltiltion. (I) .. lU) S
£ach party represents to tlu! <>ther that it nas eo;Jlllyed no rea1 estate tl'a<.er
or finder in coonection IoIith tn1S agreement and hereb:; agrees to hold the
other harmless. and free from any liability in corr.ecticn vlth any ccmissirn
or finder"s fee alleged to be incurred by it.
Ii. Entire ~~ «J.. lG.S) 50
This instrument ~ontains the entire agreement between the parties relating to
&.e ClptiCf1 gf'art<:o by this agreement. ,"'y oral rep!'esent.tions or modifica·
tions concernir~ this instrument snall be of no force and effect except in a
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subsequent modiHcatloo ..tllch Is made 1" l<Iriting. and signed by both parties.
L Rec~very of Attorne~'s feES (ct 10.9) S
In the eVe!1t of any cootroversl. ela!It. or dispute bet_ the parties Ilereto.
arls!ng out (If or relating to this agreement or the breach tllereof. the
preval Hog party sl\a1l be e!\tit1ed to recO'ler froo the losing p&rty r.easooat:le
expenses, including attorney's fees. and other 109alcosts.
J. Binding on Successors (Ct 10.10) S
This agreement shall bind and ir)(.!"E to the benefit of the respective heirs .
personal representatives. successors. and assigns of the parties hereto except
as ~"1 be exp<"essly provided elsewhere In this agreement.
IN 'OIMSS IoIH(REOf. the parties Ilereto hlve executed this Optior Agreement ()r\
the day and year first above written.
(ITY: a>TlONEE:
CITY Of P.6J..O .6J..TO COttIJNITY SI'.AIlNG. l~.
l1ayor
ATIEST: ,
Its&-ItrtWrlt
City Clerk
APPROVED /IS TO fOOl!:
City Attorney
B
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RECIJt!tND£l> fOR APm'llll.:
Ilir-€ctor. Planning and
Community £nvironment
l)"irectOl' <If finance
01" l1is 0(' her succesSO(' POSitIon
Ofrector. Social &. Coooonlty
ser_j,ce~
R1 slc II/mager
EX1UlHT I
ProJect: Cootrunity Stating. roc.
Tennis Center
3QO>niddlefield Road
This lease is maOe this day of • 19 by and between t~e Cit] of·
Palv Alto. iI municipal cQ(poratioo.(C1rl) and-Coomunlty S~ating. loc .. a
California non-profit corpor-atior, (TENANT).
~CITAlS
Ibi. therefore. in consideration of these ccvenants. terms and conditloos. the
parties hereto mutually agree as foliows:
A. In accordance "Oith i voter-appro·,ed measure. 00 April 28. 19\37. (11)"
a.:quired a 3.73 acre parcel on MiddlP.field Roao. cOOJOOnlylnoo.!1 as "liinter
lodge" site. for the purpose <Jf cootintIing its use as an ice s~ating
facl1lty.
B. On Januar)' 26. 1990. cln entered into a 2O·year lease with CoimPJnity
Stating. Inc. for the invov_nt and contl",.Je(! eperation of the Ice
sKating facility.
C. The ;,'inter lodge" site also includes a fonner swi. aod tennis facility
Which is not included in the lease for the ice skatir~ facility.
O. On • 1m. CiTY enterea iroto an ~tion to lease Agreement with
rr~ (the "Cpt;",,"). uooer wt'.ich TENANT agreed to secure all necessary
CITY approvals and peM1its in O<'6er te> exercise its option to lellS<! the
PPiMISES. construct il1Jlfovements and operate the PREMISES as a
recreational tennis facility.
L TE~T has satisfied all v.e cooditions cf. and now desires to exercise.
the Cptior aoo to lease the ffi£MlSES frm eln in order to corstr.x:t
i~ .... o,ements ana operate the PREMISES as a recreational tennis facil it)'.
U-1S\$£S. '!1..Z'tEIIlnS 1
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f. CITY aM TEtW.'1 desire th.t the ,-.ill and tennis facllity be impro.ed and
operateaby the TENANT as a recreationa' facility j~ accordance with the
. terms and coflditlons set forth belo.'.
Subject to the terms and conditions set forth in this lease. CITY lease~ to
TEHANT t~at celta;" property (PR£ltlSES) ~ribed and sho.'n in "Exhibit B".
ExIIibit·'8 is attac1led tc and. by this ceference. w.ade a part of this lease.
U11ess spedficall] provided else;,here in this lease. TENANT accepts the PR£JoIISES
"as-is" en the date ~f execution of this lease.
If. PURPOSE (Rt. 4.D} 5
The purpose of this tease Is tc p<"O\'ide for the cjevelOjJment and operation of a
recreational facilit, offering tennis for publfc play ar~ instruction.
III. REOOlRE() AND OPTIONAl. SERVICES AAD USES (Rt. S.O) NS
!n for1:herance of the pllI·poses stated abolle. the fonawing requfred and optional
services and uses shaH be prcwided. permitted or prohibited:
A.. ReQujred Sgryj<:es and Uses. Throoghout U.e term of this teise TENANT
shall prcwide the follawing services. acthlties and uses on the PR£ltlSES:
"public ,ecreatiooal tennis faCility includi"9 tennis i%truction {g<'oup
and private lessons) aoo/or sched'Jled public U$P..
B~ PerJIjttM services smd uSfs In additioo to. the required services.
acth1tles and uses set fO<"th above. the follawing uses shaH .1so be
per'llitted. but orly as incidental to the required ser,ices activities and
uses:
1. Schec!<Jled publ ic use cf Court5 may be through a tey entry progra~
-.herein keys to the courts are leased to the public for a fee.
2. Periodic use c( the Premises for tennis tournaments and other
o
organized teonis e,ents.
a. fund ~ij~ing acthities or,1y to support the required ser',ices.
activities and uses. inc,uding but not n~ited to the hosting of
benefits and social activities.
4. Other low intensity recreational uses permitted by conditfO<lill .use
pel"2i t.
C. !!It; ona} $POI; ru and Uses. Subject to the prior \oIritten approya 1 M t;/'e
Cit1 ~.anager. TEtV'.'IT may also use the PRE~ISES to provide additlooal
services. actil'ities and uses whfcrl are anci llary to and compatible with
the required ser.ices and uses stated aboy~ and not in conflict 1iith the
required uses. Approyal of optional uses shaH be within the sole
disaetfon of tee Cit] Manager and subject to any other re(fJired CITY
awoval.
O. Prohi bited Usgs. The above listed required. peNilitted and optlooal
ser,ices. acthitles, and uses shall be t'e only sec.ices and uses
pef"itted upon Qr from the PRUlISES. TfliANT agrees not to use the
PREMI~iS fO<' any other purpose nor to engage in. or per"'it. any other
business activit] within or from the PREMISES.
The term of this Lease shall be a maximum of fifteen OS) years. coomer.cing Cfl
tr.e 51gn1r<9 of lEAS<: by City. The specific tern shall be estahlfshect upon the
signing Qf LEASE by CITY and shall be coextensive and cotenllinous ""th the
existing lease between TEMANl and CITY dated January 26. 1990 for tre adjacent
site commonly lr~ at the 'Winter lodge site."
TENANT shall have the Oo)tion to exteno this lease term for an additiooa' ten (10)
years If the follt><ing conditions have been satisfied:
A. iINANT has. to t~e satisfaction of the City Manager. faithfully perfor.ed
e~ch and every condition Qf this lease throughout the Lease terJI. The
City Manager's assesstrErlt of TEAA~T'S performance shall be final and
col1<:lusive and s!!all be based 00 info,"mation received from CITY'S staff.
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i",d others that may have tnvwledge of TE"""T'S performance; and
B. TENANT has S'mitted to CITY. a >lritten notice of TENAIIT'S intent to
extend the lase In ~ccordance with the terms of ttlis <:1ause. 00 or before
sIx {6} IlIOI1ti1s p!'iO<' t() the end of the teass term set forth in Clause IV
lTER/n.
CITY may not; f1 rEIWIT If TENAIIT'S performance has not been acceptable in
accordance 'W1th subparagl"aph A of this clause Within two (2) months of receIpt
of TENANT'S r.otlce of intent to extend this lease. CITY'S failure to notify
shaH not be deeDed or CCfiStrued as CITY'S approval of T£"""1'5 optiO<l to exter.d,
YI. CONSJDERAJIQIIJRENT (Rl 1.0) NS
A. Croslilerat;QO of em. In consideratioo fOl' mW/T'S use of the Premises
provided by CITY. TENANT shall pay to CUY. upOI1 the executioo of this
tease by CITY. 5100,00 (One Hundred Dollars) for the entire term of this
lease.
s+ Noo-!TIQ!'letary 'Consjdpratj.on~ In addition to the rent set forth in
faragrap/1 A above, TfHANT agrees to OpErate at no cost to CITY a public
temls facl11ty conSistent ""ttl Clal.oSe II (PlRPOSn and Clause III
(RECVIRtI:t AND OPHONAl. Sf~VlCf:S AND USES) .
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VI L RENEIiOTlAJlOII 0' RENT CRt. 7.5}
In the event tr.at TENAIIf changes 0.-loses its status as a non-profit organization
ur.der the la-.s of t~e State of (ali forn1 •• the abcve lIlOI1etar1 coosideration
shall. at CITY'S option. 'be revise<!. effective upon the date of such c~anges in
status. to reflect t~oe fair market rental of the PREMISES as determined hy a
llUtual1, agl"eeab1e KA I designated appriiser. Soct, deteMlination shall also
include a mechanism fO( s,l>sequent renta) adjusbrents te> te<'!P the ... rket rental
current. Acceptance of any raised rental hereuooer 511a11 not be deemed a waiver
of any provision of this lEASE. specificaHJ including, but not limited' to. the
provisions of Clause II (Pl\1POSO. Clause III (Rf()J1REO J.Il() OPTIOtW. Sf~~lCtS J.Il()
USES) and Para.nph 8 ()f Clause ~l (WNSIO€RATIC\'I!RENT). SI10uld CITY and TENANT
roc agl"ee on en M.A.!. deSignated appra; ser. one shall be appointed by the
presiding judge ~f the Superior CCJ(Jft of Santa ellra COUIlty.
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~III. CHARGE FOP. IJIIAtiTIiORilED SERVICES AND USES (Rl 7.4) ~S
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TENMr shall pay CIT'( a s..rn eQ'Jal to one hundred percent (lOOn of the gf"OSS
receipts for any ser,ice or use that is not penlitted or authorized by Clause I II
(REI)JIRfi) & OPT\()iAl USES), lhe existence of such <-harge or the payment or
receipt of rone)' under this clause. does not constitlJte an authorization of a
particular ser,1ce cr use and does not constitute a waiver of CiTY'S rlit,t. to
terminate such ser,ice or use.
lX. C(Jf,'TRO, Of f!U<S. PRICES AN!) PROCWJRfS (Rl a.G) NS
TBWif shall at all til!'eS lnaintain a written schedule setting forth the operating
hours and operating proc~es (0<' the required, permitted and optional uses
proyi <led on or frail the PR9'IISES. A sche<lul e of prices charged for all services
related to the required and optiona1 uses of this Lease 5<'<111 'lsc be ~.aintained.
Upon written rejliesl. TEW<N1 shall fU!'nlsh the City MoMger or designee. a copy
of tJ-e schedules and procedures. ShOuld the City Manager or des!gr.ee decide that
any part of these sc1ledu1es or procedures is not justified lo'ith regard to fairly
satisfying the needs of t~e public. TEAA'IT. upon written notice from the City
Manager. sM 1l lllOdi fl t~ese schedu 1 E'S or procedures to t~.e sat i sfacti 00 of the
City Manager. PriOt" to issuing such a notice. the City Manager or designee.
shall personally reviet and confer -nth TENANT or its represent,tive.
Primary consideration shall be given to the puhlic's benefit in implementing this
clause. An prices charged for goods and/or servIces supplied to the public on
tlr troo the PR£M1SES shall be fair and reasenable. b.se<l upon the f01100ng
~O!lSiderations:
A.. The degree of pub1 ic service involved in the sale of tr.e goods and/or
serwlces;
S. The <.arket prices c!1arge<l by ot,ier cOIl{leting and/or c"'P'rable ooslnesses;
and
C. The re.sonableness {)f the ""oject~ income and expenses: including the
need to accumulate funds for continued mairltenance and capita1
; mprlWements.
TENANT'S failure comvly .1th the provisions of this clause shall constitute a
material breach of this lease and may be grounds for termin,tion of this lease.
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TENANl agrees that it wi 11 opE1"ate and ,,,mage the ser.; ces and fac; I; t1 es offered
in a compet~ and effici.nt ~r~~r at least comparable to other well managed
operations of a similar type.
T£NAIiT s~all at .all times r~ta!n active. qualified, Wllpetent. and e><perienced
personnel t~ super~ise TErt/oKI·S operation and to rEpresent and act to!' TENANT.
TOI.AKT s~.all f<'q'Jire its atterMots and ""9loyees to be pror>erly dressed. cleao.
courteous. effiefent. and neat in appearance at all times. TE~'T shall not
allow any person{s) t~ 01' arolt the PR81ISES.no shall use offensive language
and/or act In a boisterous 01' otherwise irrvoper manner, TE~'T shall maintain
.a clese ChecK over atte!'.dants and €!ll>loyees to insure the maintenance of a hf~
standa rd of ser';i ce to the JJ(lb 1i c.
If tr~ City Manager. on behalf of CITY. detenoines that the quality of ser.ice
rendered by TENANT. includirl9. without limitation. a determination that the
standard of ser>ifce prD,ided by any €!ll>loyee of TE~T is not satisfactory under
tlle provis;""s of this lease. TElWIT shall act illInediately to remedy any and all
such detera:jnatioils ;,ft~r receipt of notice from the City /ianager.
(ITY reserves t.lle right to <lisqua1ify from providing ser>iices to the public
errployees of TENANT '000 do not meet the standards of service specified in this
paragraph. tHY may require TENANT to re<OO .. e any erployees frm the provislor of
Ser'ffces to the pu!llic pursuant to the te.-..s and cooditioos of this tease.
,tNANT·S (.i1ure to effectivel, remedy any ..,.itten notice of determinatior to t~.e
satIsfaction of the City .nth;" five (5) days of receipt of such POtiee snail
constitute a default by TENAIi ••
I. ~·PRCfIT WiHlJNITY ~lZ"'T1C!1 BI'LAWS & M8'&RSHIP (RL ] .6) S
l'oe!ltlers~iJl in TENANT'S organization shall be open to anyooe meetir.g the
req<.iirements of its rules and bylaws. ,~l1 restrictions. rules. bylaws. and fees.
and changes thereto prq>OSed by TENANT snail. prior to being put into effect. be
reviewed and approved by the City /ianager. Tr.ese rules. bylaws and fee schedJles
s1>311 be or (,Ie .nth the Real Property .'1,mager throughout the tee. of this
tease.
XI. SECL!<lTY Df.POSlT (Rl l3.1) S
A security deposit in the sum of five thousand dollars ($5.000.00) shall be
provided to (ITY by TENAIiT. The security ~it s.'Jan take one of the forms set
out bel"" and shall guarantee TENANT'S full and faithful performaoce of 0111 the
tenns. covenants. and conditions of this lease.
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8. The ilssignment to CIII of I savings deposit ~~1d in jJ financial
Institution in Santa Clara or San ""teo County acceptable to (III. At a
lIi~I_. such assignment shall be Evic!enced by the delivery to (III of the
orIginal passbook reflecting tlJe savings deposit and a written assigrroent
of the deposit to (III In a form approved by tile Rea, PrOlJerty Kanager·
C. I>.. Time CertIficate of Oepcsit frm a financial institution 'in Santa C]"a
or San Kateo COUIlty ...t1erein the principal Sin is made payable to (III or
order. Both the financial institution and the form of the certificate
IIlUSt be approved by the ~eal Property ""nager.
0. I>.. letter of Credit or other instrument of credit frOO! a financial
fnstitution. subj<!ct to regulation by the state or federal 9O.ernment.
pledging that funds necessary to ~ure perfonnance of tile tease terms.
eoverants. and conditions. are on deposit and guaranteed for paymert. and
agreeing that said funds s~all be trust funds securing TENi'NT'S
perfonnance and that all or any part shall be paid to (III or ocder up<:.1
demand by CITY. lloth the finar.cial institution(s) and the forn of the
fnstrunert(s) rust be approved by the Real Property I'.anager.
ReganfJess of the fona in ..micn TElWIT elects to ma.e said 5eCUf'ity d€posit, all
or any portion of the principal sum shall be available unconditionallJ to (III
for correcting any default or breach of this lease incurred by CITY as a resuit
of the faH\lI'£ by TENANT. Its successors or .551905, to hitM'.ll) perfDnll .n
of .tlle tenns. covenants. and conditiors of this lease. Sh<l<J1d TENANT elect to
provlde a Time Certificate of Oepcsit. letter of Credit. or other instrument of
credit. hereinafter eollect1'lely referred to as 'ItOSTRtKNT". to fulfill the
securfty deposit reQ<iirerrents of this leaS<'. the INSTRl.t1£JoT shall cortain a
pro>ision whereby the irstitutio" issuing the INSTRMI'T ag<'eES to provide CITY
with written !'lOtice of its intent r<:.t to renew the HlSffiiJMENT at least thirty
130) days prior to expiratioo or tenoination of the INSiIMlENT. If TENA~T has
!'lOt provided elll with an acceptab1e alternate fora of security deposit at least
ten {leI days prior to expiration or termination of the INSTRll'IENT. CITY may
demand and OOtain from the institution issuing tile ltOSTPMNT. the amount ~ured
by the INSTRUMENT as satisfiKtior of tile security deposit provlsiO!1 of this
lease.
Should TENMI elect to assign the savings deposit to CIII, or prOVide an
.Tterr",te INSTRL"'OIT. to fulfill the security deposit requirements of this lease.
the aSSignment. or issuance of the INSTRMtff s!1all have tile effect af re1easing
the depositor or ered1 tor therein fran lia1lilit1 on account of the payment of any
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or all of the priOClpa1 SlJ1I to CITY or order upon demand of CITY. The agl"eement
entere<;l Into by TE'I."XT ..-ith i financ!a1 institutfoo to Establish the deposit
ne<:~ssarJ to peMlit assignrent or issuance (,f a certificate as provided a\xNe.
rey 111(>01 the pa)l1leflt of interest accruing on account cf the deposit to TENANT.
or order.
T£rwrJ shall rnintaln. the required security deposit throoghout the teaSE tel1ll.
fill1ure to do so shall be deeme1 a default and l113y be grourds fer irrmediate
te".in.atlon ilf this lease. The security deposit shall be rebated. reassf9l1E1.
re1ease<;l. or endorsed to T£IWIT or order. as applicahle. at the end of the lease
teM!. provided TENANT or order. as applicable. at the erod of the lease te .....
provided ITHANT has fully and faithfully perf\lf'llled e.c~ and ever:! tel1ll. cove<1ant.
and condition of this tease.
()1 each five·year anniversary date of the coomer.cement of this leaSE. t~.e aroooot
cf the seoJf"itl deposit set forth above s~al1 be adjusted according to the
folloong fonrula:
1/here:
R • SD(lB • 0.850' -8l/B)
R • Revise<;! security deposit.
SO -Initial security deposit.
~ -Alierage ronth1y index for the 12 calendar mooths eMing
'Iilth and including tr<! index pub1ishe<;l just prior to the
II100th in ..t1ich each security deposit adjust""",t is to
become effective.
B -AYerage ronthly index for t~.e 12 calerdar Ii1Of1ths ending
..-ith and including the inde.~ publishe<;l ,iust pt'ior t(}
ccmnencement of this lease.
In no evert ~al1 t."" amount of the revi SEd security de~it be less tha" the
initfa1 security deposit. The djff~rence bet"een the initial security deposit
and tfle revIse<;! security deposit ~al1 be due a.nd payable to CIT~ 'Iilthin ten (0)
days cf receipt <Jot' a notice of revision of the security de~it frQlll t~.e Real
Property llanaget'.
XII. MAlNTENAIIC£ AND R£PAIR CRt 14.1) ~S
TENANT at lts EXperSE. shall perform .11 maintenance and rep.irs. including ail
painting .• nd .n .... interanee of landscaped areas necessary to keep the PRElI1SES
and all 'llVo';ements thereto in first-class order. repair and <:ondit;on
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t~"0U9hc~ the term of this LEASE. In addttion. TENA~T shall maintain. at its
e.<penSe. a 11 equi.,.,ent. furn; shings and trade fi .tures upoo the PR£I1ISfS requi red
for t.'le malnte'lance and operation of a first-class operation of the type to be
conducted pursuant to Clause III (RfQlJIRfO AND OPflONAL SERVICES AND uSES).
lENA~1 \liilves the right to OI3~e repairs at the expense of CITt and the benefit
of the p-oviSiDnS of Sections 1941 and 1941 of the Civil Code of CalifOfnia
relating thereto; aoo further agrees thilt if and .. tJen any f"'Pairs. alterations.
additiOns or betterments shan be made by It as requi red by thi 0; paragrap/l; it
shall promptly ~ for .11 labor done or materials furnished and shall keep tt~
PR£ItISES free aod i:lear o·f any lien or encUlllbrance of any tind ..t1atsoever.
S1loutd TEI/AIIT fail to make any repairs or perfon> any roaintenance IooQI'\: for ..t1icl1
it is 11ab1e. CiTt sl1al1 have t~,e option to make the repairs and TENANT within
ten nO) dajs of receipt of a bill therefor frOOl the Real Property Manager.
re1mbc~se CITY for lr,e cost of such r~pairs. including a fifteen percent (15%)
administrati"e overhead fee. The NHng of such repairs or perfonnance (If
Nintenance by (ITt sh.ll in 00 eve~t be construed as a waiver of the My of
TENANT to make repairs or perfOfll maintenance as provi.:fed in this clouse.
TENANT shall be responsible for the maintenance and repair of al1 the parling
area of the City·owned 3.73 acre parcel.
XIII. INJTLAL CONSTRUCTION BY TENANT (Rt 15.0) S
A. Jo!j!J)jmum f.oostrqction and Tfming, TENANT shall tn an efficient and
wor[man 1 ike Nnner. cause tc> be des i gned. coostructed. and I nsta 11 ed
vlthin the PREMISES. at 00 cost to CfTY. appropriate improvements to
adequately acc(lll'll1()date these ser.ice; and uses required by Clau~ III
(REQlJIRfD & lJ'TlOlW. SERVICES AND USES), The plans prepared by TE~'/T and
awoved by CITY durj~g the option period proceeding executioo of this
lease s1\a11 be a master plan fO<' develOjl1llent of the PR£I11SES. and the
construction drawings pr"'P'red by TENANT and 'pproved by the City Engineer
liuring the same perlOO snall be the plans. specificatfons. and ti~e
schedule for constructing such iIlVOVemel1tS.· Development proposed by
lENANl in the !laster plan may be scheduled i"increments approved by the
Ci ty Manager or des i gr.ee .
B. Qeyelr;gneot plan and CDrjStCix:;t-;oo Standgrd:;. All design arKf construction
shall confCnl with the construction and arcMtectural standards contained
in (ITt-approved plans and cCt1Struction drawings and sr,all meet all other
requirements contained i~ this Let5e.
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C. jo1inlmurn Cost of !nproy~ts. The minf""'" cost of R~T COflstructed
improvements shall be One WJndred Thousand Oollars ($100.000).
)l~. COOTROCTlOO AND/OR AlT£AAJI';:lI SY mwrr (1<1. 15.1) 5
A. Clll'S Coofent. No structures. improvements. ()(' facilities shall.be
constructed. erected. altered. or ... de vit;,;n the PRfltlSES "ithcut the
prj"" written consent of City CouncH if requfred by City of Palo Alto
procedures ()(' ordinances. or cthervise by the City Xanager. MY
conditIons relatfng to the manner. method. design. and· construction of
the structures. imprOV~1tS. or facilitfes establi~~ by CITY shall be
cor.aitions of this clause as thoogh original 1, stated herein. lENNI. may.
at any 'time and at its sale expense. install and place ~JSine5S fixtures
and equiPl"€nt wlthin any bUi16ing coostructed by tlll. pro,ided such
fixtures and installation have been reviewed and awaved cy the City
Manager. or desi~nee.
B. -Strict Compliance Witfl plans and Speci fjcatjoos. All fmprovements
constructed by TEIIANT vithin the PR£~ISES shall be constructed in an
efficIent and workmanlike manner and in strict compliance vith detailed
plans ard specificatloos awoved by the City Council if required by City
of Pall> ... 1 to procedures or ordinances or cthervise by the City Manager. or
deslgnee. and applicable City of Palo Alto codes and ordinances.
C. (ert! fi cate of InSl!ecti OG. IJpoo <:OfI4lT et i 0<1 of coostructi on of any
building. TENAAl s~an suroit to the Real Property Manager. a Certificate
of Inspect10f1. .erHying that the constroction '""s cOlT!lleted in
corformaoce vith Title 20 ilf the Cali fornia Code of Regulations for
residential construction. or in cooft.'<1llacce with Title 24 of the
California Code of Regulatioos for non·residentia1 constructior.
n. TENA~T'S ASSURANCE If.CONSTR\JCTION CCl'PLEHON (Rl 152) S
Prior ta cOIII1'el1Cement of constructioo of approved facilities. or any phase
thereof. vit;,;n the P1IDHSES by TENANT. TEIlAAT shaH furnish the REal Property
Manager. evidence that assures CITY that sufficient monies .011 be available to
cOlT!llete the proposed coostructior. The amount ()f such assurance shan be at
least tr~ tot.l estimated construction cost that was submitted to and approved
by CITl in ar..cordance with this lease and the (date of Ogtjoo) . Opti""
.>,gresrent. {vidence of such assurance shall take one or 1IlOf€ of the forJl1S set
out below and shall ~"arantee TENANT'S full and faithful perfermance of all of
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the terms. co-<enants. and conditioos of this lease:
A. Coopletlon Bood;
a. Performance. labor aoo material bonds. SUWlfed by TEAANT'S cOl1tractO(' ()('
cantractors. provided the boods are Issued jointly t() TENNIT aoo CITY;
(. Irrevocable letter of credit from a financial institution; or
V. Ar.y ~OIlt>inatfon of the above.
All bards aoo letters of credit I!I.JSt be ISsued by a surety cOll1p<iny qualified to
tnnsact surety bosiness ir. t11e State of Califorr,ja and be acc .... ,>tab1e to t11e
Director of finance ()(' his or her successor position 000 City Attorney. All
!londs aoo letters {If credit shall be in a fonl acceptable to the Oi rector of
finance or Ms {)r her successor positioo aoo City Attorney. and shall insUf'e
faithful and full ooservance and performance by T£'IANT {If all of the terms.
cooditiQrlS. coven.nts. and agreements relating to the cCl1structioo of
invoverrents In accorcaoce with plans approved by CITY as set forth in this
lease.
xv I. OAI'AGE TIl OR DESTRUCTION 0" IMPROVEMENTS (Rl 15.3) S
In the event of damage to or destriJCtian cf TE'IANT-constructed buildings.
facilities. C<' irrprovenents located .. 1tMn the PRa1ISES 0(' in tr.e event TENANT
{;oostructed llui ldings. faci lIties. ()4'" ill¥(Ne<rents located wit~in the PR!:KlSES
are declared lJnsafe <If" unfit to(' "se 0<' occupaocy by a public entity with the
3Uthcritl' to ma~e and erforce such declaration.TE'IANT shall. within thirty (3D)
(fays. carmence and dil fgentl, pursue to c~letion the repair. replacement. {},"
reconstruction of iIlVO·,arents necessary to pennit full use and occupaocy of the
PR9IISB to(" the P'Jf1'05es required ~y this tease. Repair. replacement. Of"
recOilstructier cf illVOVemer1ts within the PREMISES shall be acc~lished in a
~amer and according to plans .pproved by the Chief Bulldiog Official and the
Real Property Ma~. Except as otherwise provided hereIn. terminatier of this
lease shall not reduce Of" nullify TENANT'S obligation under this paragraph.
Not""thstaooiog the above. should' the TENM'T-cerstructed ill'!)fovements 00 the
PR£MlSES be lOOfe than se,entY'five percent (lSI) ~troyed or da~.aged ~y an
insured' Joss duriog the last five (5) years cf the term of this lease. TE~T
shall ha<e the q>tion of rebuilding or repairing Hr:h damage or terminating this
lease. TEIIANT shall notify t11e Real Property Manager in .. riting of its declsion
.nthin ten (10) days of the occurrence of such damage Of" destruction. In t~.e
event that TENANT elects to terminate this lease aoo not rebuild 0(' repair such
damage. lEIlMT shall demo1 ish any remainiog structures or portions of structures
not desired by CITY and clean up any aoo all debris and shall pay to CiTY i pre-
U--l.u.s£S. ,r....rrmarrs
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rata portion of the proceeds of insurance required in accordance with Clause
nlll UNStJRANC£J. The pro-rata portion 511all be based on the following formula:
1/here:
l -. P(RlT)
l -£ITt'S portion of inSurance proceeds.
P -Total insurance proceeds P<li~ exclusive of dellOl ition
and debri S rerna"a 1 expenses_
R -Remaining tern of the lease.
1 -The total lease term. includ;ng any el'tens;OfIs made in
accordance with this Lease.
XVll. AS BUILT PL.a.NS (Rt 155) S
Upon COOlP 1 et i 0fI of an1 ""'.]or TE~.NT -C()(iS tructed i llipfovement s. TENANT sha 11
provide the Real Property Manager with a cOITl?lete set of feprOOucible "as built
plans" reflecting actual c<n>tructioo within or upoo the PRrJollSES_ TENANT snaH
also provide the Reil Property Manager with a statement signed by TE~~T L'f1der
penalty of perjury certified as to accuracy and of actual coostructiOfl costs for
ill sue~ igprovements.
XVllL GlNERSHIP (F IHPROVfllENTS (Rt IS.O} S
All l'VOvemE!f1ts constructed. erected or installed upon the PRf];lSfS IilUSt be free
and clear of all liens. claims. or liability for labor or materfal and snan
become the property of UTt. at its election. upon expiratiOfl or earlier
terllinatioo. of tOls lease and. upon City's election. st·al1 remain <.lpon the
PRE/USES upor termination of th:s tease.
Title tt) ill equipllef1t. furniture. furnishings and trade fixtures placed by
TENANT IJllOfI the f'R8'!ISES shall remain in TENANT. and replacements. substitutiOfls
and lIIOdificatlons therecf IIla.Y be made by TEN.""IT tr.roug11out the te .... of this
tease. TENANT roay relOOVe suen fixtu<es and furnishings up;>1 termination of this
lease if TENANT is not then in default under th;. lease. provided that TENA,~
shall repair to the satisfaction of CITt any damage to tne PR£KlSES and
i """OyeJlet1ts caused by such re<ooval and proyi ded thilt usua 1 and custorna ry
11911tir.g. pllJlt,lng and heating fixtures shall remain upon the PREMISES upon
tenojnation of this tease_
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XII. l~llITIES (Rl 11.Q) S
TElW/T s~ 11 be respoos i tol e for and s~ 11 pa.r. prlQl" to de 1 i flql;€f"oCY, ill 1 charges
tor utlHties soppHe<! tc the PREM1SES.
XX, llolSliAANCE (Rl 18, l) S
TENANT sIla11 roafntaln insurance acceptable to CITY in full force and effect
througlloot the terw of thi s lea se.
MilJ..i1q.8 y-poe Of (nslKanc:e
Coverage shall be at least as broad as:
I} Insurance Ser.ices Office Commercia) General liability coverage
(occurrence ferm CG 0001).
2) InslM'ance Senices Office form nunt.er CA 0001 (Eel. 1187) covering
Autorndbile liability, code 1 (any auto).
3) \larters' Coopensation insurance as required by the State of CalifONlia
and Employer's tiabilitJ lr.surar~e.
4) Course of Construction insurance fors pro,iCing coverage fe .. "all
rists" of Joss.
The policy 01' j)Olicies of i~surance maintained by T£NMT sIlall provide the
following lfmits and coverages:
e.:u.a JHNlfUI lIMITS 0' LIABILITY
(1) IoORKERS'
W'J'ENSATla. Statutory
(2) W'.PmlENS!VE Bodily Injury Sl.OOO.OOO ea. person
}J.JH)l00 Il E Sl.OOO.uOO ea. occurrence
lIABILITY , PropertJ Damage S1.000.000 ea. OCCUf'reoc-e
including o.Tled.
hired. and r.on-~d
aut~iles
{31 CCJoIPR£HENS I VE Bodily Injury Sl.OOO.OOO ea. person
GOIEIW. SI.000.000 ea. occurrence
l Ift.8 I LI TY SI.000.000 aggregate
including Property Oamage SI.000,000 ea. occurrence
'll<'ooucts and Persona l Injury 51.000.000 ea. occurrence
111:--t.IASI.S:. "T/I.Z'!I'lCKU 13
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completed ~r.t\ons.
broaq fOl'1li c()()~roctual.
and personal i~Jury.
(4) fiR£: • OTENDEO
CO'IER.'G:
~ot less Han rinety percent (90t) of the
replac~nt cost of all insur.~le irrprovements
.;thin 01" ~'POO the PREMISES. StJch policiEs .... st
ir.clu<fe .-atec damaQt and debris cleanup provisions.
Additional fire and extended cCilerage ~t be
OOtai'l€d in ilccordance with this clause upon
completion of construction or installatior, of any
IOajor insurable inproveme<lt.
Completed value Qf the pro~t.
l)edll!-tibles and self-Tnsured Retentions
A.~1 deOOc\ibles or self·insured retentions rust be declared to and app.-oved by the
CiTY. At the option "f the CITY either; the insU<'er shall reduce or eliminate such
deductibles ()(' self·insU<'ed rete!1tions as respects the CITY. its officers.
officii 1 s. e:J'Q 1 ayees and volunteers: {)(" the TENANT st-.a 11 proC! .... e a !>and
guaranteeing payment of losses and related investigatIons. elai" acbinistratioo and
defE."lSe expenses.
InsU<'ance s.'lall be in full force and effect ccmrencing on the first day of the te~
of this tease. £ach insurance pollcy required by this lease shall contain t~.e
follOloir,g clauses:
1. "Each insurance policy required by this clause shall be endorsed to
state that coverage shall not be suspended. voided. canceled by either
party. reduced in cover~e or in limits except after thirty (30) days'
prier wTltten notice by certified mail. return rece;pt requested. has
been given to the CITY."
2. "All ~i'ghts ()f subrogation are hereby waived against the CITY fF PAll)
AlTO and tl1E members of tl1E City Council ancl elective or appointf,.
officers or e<l9 1 0yees. Iootoen acting .. ithiM the scope of their e<llIlloytre!1t
or appointment. "
3. "The CITY ~ PALO ALTO is named as a loSS payee on the property and
ccurse of construction insurance policies desCribed .!love."
· " ..... --~
>. --";'::;';;~<'.~-:.
, _:.:. ;' ,-;'.-.r
4. "The ClTr. its officers. cffjcial s. ~lcyees. agtrlts and volU!1teers
are to be covered is insured. as respects: liability arising out of
acthities performed by 0<" on be/lalf of the TEli'.XT; products and
cC<'()leted ~rat'ons of the IEIW!T; pl'e<I\lses owned. occupled or usec
by the TENANT: or a"toodJlles Mled, leased. hired or borrcwed by tN!
TEIW!T. The coverage shall contain no special limitations 00 the scope
of protection affO<'ded to the CITY. its officers. off1cials. enployees.
agents or volunteers."
S. "For any claims related to this lease. the TENANTs insurance coverage
sh.all be primary ins\...-ance as respects the CITY. its officers.
offichls. ~loyees. agl!f1ts and volU!1teers. MY insurance or self·
insurance maintiined by the CITY. its officers. offtc!als. ~loyees,
agents 01' volunteers shall be e.xcess of the TENANT's insurance and
shall r.ot cOIltribute with it."
6. "My failure to c~1y wit" reporting or other provislO1ls of the
~1ides including breaches of warr."tles shall not affect coverage
jl<"o\ilded to the CITY. its officers. officia's. errp1oyees. agtrlts or
vol "nteers. ". .
1. "The TENANT's insurance shan apply separately to eoch insured against
..nc.. c1aim is ,.ade or suit is brooght. ~xc~pt with respect to the
lillits of the insurer's 1 iabilitJ. "
Acceptahiljty c,t Insurers
Insurance 1s to be placed ~.th insurers 'otitJ1 a current ~.II. Best's ~aUng of no
less than A:'II.
PI. Ii6URANCE (Rt. 18.2)
TENMIT i!9<'ees to deposit wit~ the Rea1 Property i'!anager. on or before the effective
~ate of t~ls lease. certificates of insurance necessary to satlsfJ CITY that the
insw.ance jl<"ovisiOflS of this tease have be€11 c~lied vitti. and to teep such
insurance In effect and t~e certificates tllerefore OIl deposit .. ith (In' during the
entire term of thfs tease. S/'.ould TENMT r.at p<"ovide evidence of such required
coverage at Teast three (3) days prior to the explr~tioo of any existing insurance
coverage, e{TY may pu<'chase such insurance. on behalf of >OM at t~.e expense af
fEl.ANT to pl'ovi de s i. IOOflths of coverage.
CITY sn.,1 retain the ri9ht at any time to revfew the coverage. form •• nd .mount .. -~ . .,~ 15
'.
' ..
. '.
-. .--' .-,
. ~'---.
"'-,; --.. '.
t .
of the insUf"ance required hereby_ If. in the opi nj on of the Ri st MaNger. the
insurance provisions in t~.ls lease do not provide adequate protection for CITY and
for IIIP.I1t>ers of the ptblic usif'9 the PREMISES. the Real Property Manager may requi re
TENANT to obtain insurance ~ufficient in coverage. for~. and amount to provide
adequate protectIon as detenrined by the Ris~ Mana9~r. CITY'S requirements shall
be rea'iOOab1e and shall t-e deSigned to assure prot€<:tioo from and against the lind
and e>tent of r1sk which exists at tt~ time a chaf'ge in insurance is r~jired_
The Real Property Manager shall notify TENANT in writif'9 of cnaf'ges in the
insueance reqJirernents. If TENANT does not deposit COP1es of acceptable insurance
policies with CITY incorporatif'9 such changes within sixty (60) days of receipt of
soch notice. or in t!>e event TENANT fails to maintain in effect any required
fnsurance co,erage. T£~T shall be in default under this lease without further
notice t() JEIWIT. Such failure shall constitute a lllaterial hreach and shall be
grounds far intnediate teMlination of tnis lease at the option ()f CITY.
The procurir.g of such requi red pol i cy Of pol i ci es of i r.suraoce sha 11 not be
construed t~ limit J[~1'S liability hereunder nor to fulfill the indemnification
pro~isioo and requirements of this lease. Notwithstanding the policy Of policies
of Insurance. J[NAAT shaH he obligated fOf' the full and total amount of any
damage. injury. or loss caused bj Of CO!1l1€Cted IoIith t'is lease Of with use Of
occupancy of t~~ PREMISES.
XXII. ASSIGNING, SUBlETTING. AND fNCUMBERli'6 (Rl ]g.O) S
!fly trortgage. pledge. hypothecatioo. encwbrance. transfer. sublease. Of assi9ffi'!!lt
. {co, lectfve1y raferred to as ENC\.f1I3RANCEl of TENANT'S interest in the PREMISES. or
any part Of' portion there of. shall first be awoved in writing by the City
Manager Of desi~e_ kly ENCl.I'1BRMICE ""ich has rot been aweved by CITY in
writing snall be void. Occupancy of the PREMISES by a prospective transferee.
subtenant. cr .ssignee before awova1 of the transfer. sublease. Of assignment by
CITY shall coostitute a breach of this Lease.
If TENANT is i corporation. an unincorporated associaUoo Of partnersMp. the
ENCI1tBRANCE Of transfer {)f any stock ar interest ie cOfporation. associatioo. or
partnership in the aggregate exceedif'9 twenty· five percent {2SI) shall be deemed
an issignment within the meaning of this tease.
Shoule CITY consent to any ENCUMBRAt'a. such consent sha 11 not canst i tute a wa i ver
of an} of the ter-ms. co;enants. or con6itioos of this lease_ such terms.
covenants. or canditlons shall apply to each and every ENCUMB~~CE hereunder and
shall ~ severan! bfndif'9 upon each and every assignee. transferee. subte<1ant. or
other Succ<!SS<lr i/\ interest of TENANT. My docc.rnent to encll1fber. transfer. ~ub1et.
or assign the PR9I1SfS "" an)' part thereof shaH incorporate directly or by
reference lIl1 t~.e j)ro\'isions of this lease.
CHY agrees that it 0111 not arbitrarily vithhOld coosent to ani encuoOOrance. but
CHY may ,..;thhOllf consent at its sole discretion if any of the foi1oong conditiCl'1s
exist:
A.. TENM'T or any of its successors or assigns is in default of any tenn.
covenant. or cor.ditioo tf this lease. wther notice of default has or /las
not been given by CITY: '
B. The pr()SlJeCtive EN".,\.I'\BAANCER does not indicate in writing t~.at such
UC\H!IiAIlcr Is subject to all tl·.e t~nns. covenants. and conditions of this
te.~;
C. All the terms. cover.ants. aM conditions of the propose<:! ENClI'ISP.ANC£
including t~.e consideration therefore ()f any and every Hnd. have not been
re..ea 1 ell in writ ing to CHY:
!), My construction requi relf of IT~b,Nf as a condi t i on of th is lease has not !leen
completell to the satisfactlcn of CITY;
L The processing fee required by CITY and set forth in the then current Palo
Alto .Municipal Fee Schedule b~ not bee" paid to-CITY:
f. If an assfgnnent or sublease !s .... ~, and TENANT has not provided CITY
vit". sufficient infonnation to pefEit CITY to conpletely e".luate the
background. s](l11s. ffnancia1 positioo. prO!'QSed operating plan c~anges and
refereroees c.f t~ prospE'C\ive assignee « subtenant; or
6, If the pr~ assignee does not have the required sl<i115. experience 01'
'flnancial standing to provioo tt least tee same level of ,;ery'ce as TEOWIT
"Men detenlfnation shaH be 'oiti1in the sele discretfoo of the Cit] }\dnager_
The above list is not incl~ .. ive b<Jt is intended to g;"e TENANT wne idea of the
types of situatIon "".ere CITY ""y withI>:Jld its consent to any ENCiJHBRANCE. CITY
reserves the right to withhOld its consent te> any fNUttBRANCE tnat will. in CITY'S
sole opir.ion. a1versely affect the provision (Of service reqlfireJ by this lease 01'
adversely affect CITY'S inter .. t in and to the land and structures covered by this
lease. Hypothecatico of the leasehold interest created by this lease is express1]
prohibited aM any att~ted hypothecation shall be null and void.
17
X"tlIl. DEffi,lT IN TERMS r1' THE LEASE BY TE~T (Rt. 2(1.0) S
Should rEM.~T defa~lt in the perfonr.ance ()f any cov~nant. condiUon. ()<' a9l'eerent
cOi1talr.ea in this tease and sucr. default is rot correcte1 .,;thin 3{l days of receipt
of a notl<e of default fren USSOR. LESSOR may:
A.. !ertllnate this lease and all rights of TE'Wff and those w!1o chi~ ,under
TDWIT. steming frOOl this tease. shaH end at the time of such termilliltiO<I:
B, At lESSOR'S sole ~ion. cure any such default ~y performance of any act,
iocludir>g payTlle!'lt of lOOney. and the C()l;t thereof. plus reasonable
aa.lnlstrative cost. Shall beeo",e Ill'1Tl€(jiately due ane! payable by TENMIl' tt>
US5OR:
C. ~k an actioo or suit in equity to enjoin any acts or things Ioflicn 1Ila1 be
Ul"lawful or in .;ol.tioo of tll<! rigllts of tESSOR:
G. Seel: manaamiJS 01' other suit. action of proceeding at la ... or in equity to
enforci! its rights.gainst l£AANT and i t5 and any of its officers. agents.
and enployees and its assigns. and to c"",e1 it to perfor1ll and carry O',t its
duties ane! obligations uncler the 1 ... and lis covenants and agre€!Jlel1ts with
LESSOR is provided herein: or
L Pursue any other rerne<ly a',.i1able by liN or speclficall, provided in other
<hus-",; iJ·f this lease.
However. In the .!vent llf a default ..t1ich can not reasonabl] be l:ured 'oIithin 30
daj'S. TEIfIoKT Shall have a reasooable period <If time <as deteMlline;j by LESSOrS City
Manager) to cU<'e the default. Each and all of the remedies given to LESSCR
lY.!!'e<)!'lder or by any 131< now 01' hereafter enacted, are cumulative and the exercise
of one r>ght or remedy shail rot ill\)air the rigllt to LlSSOR to e><ercise any Of' all
other remedies. In ca!e any suit. actiOli 01" proceeding to enforce any right or
e_eise any reoely shall be bl'ought or taken and then discontinued 01" abandoned.
then. ane! in every soch case. LESSOR and TENM'T SfW.L be restore([ to its ane! their
former poSition and rights and remedies 'as if no such suit. action or proci!edings
had ~ brOO9ht Cf tale",
In addiUon to. violatiOll or bl'each of any otll<!r provisioo of this le,se, TE),ANT
shall be coosidered to be in default under this lease should I£AANT:
,~. 'lOiuntari1y file or have ,r,voluntar;ly filed against 1t any petitioo uruler
any bankruptcy or i nso 1-,eney act 01" low:
B. be a d,llidi ca ted a banir~;
C. ittetlllt to roa~e it general .assigrnr.ent fO<' the benefit of creditO<'s.
nr~. tmlCES (RL 23.0) S
All notiCes. stat~ts. demands. requests. corsents. a~ovals. authorizations.
offers. agreements. appointments 0<' designations hereunder gi'ie by either party to
the other. shall be in 10Iriting and s!>all be sufHCiently given and seryed!.pan the
ocher party If H) personall, served. {2) sent by IJr1lted Stat~s Certified mail.
postage. prepaid. (3) sent by express deliyery service. 0<' (4) ir. the case of a
facsilAne. If sent to the telephone n~r(s} set forth below during normal
business hours of the recelving party and foll~ .nthin 48 hours by delivery of
hard copy of the material sent by facsimile. in accordance .nth (I). (2) or (3)
a!love. Personal service shall include. without lfmHatior. s~ ... ice by delivery
service and service by facsimile transmission. Delivery of rmices properly
add!'essed shall be deened ~ooplete """" t~,e notice is ~ysically deHvered ro the
1lea 1 Propertl Manager 0<' the
An notices pursuant to U,; s lease shall be addressed as set forth below or as
eitner party ~ subsequently designate by written notice.
TO: ru:x
Real Property Manager
eHy of Pillo Alto
. P.O. 80)( 10250
250 f'.alllil too AYenue
Fa,o Alto. CA 943m
FAJ.: (US) 329-2468
.nth a copy to:
CityOer\. City of Pal,CI Alto
P.O. So,,-10250
250 Hamll tan Avenue
Palo Alt~. CA 94JC3
FAJ.: (415) 328·3631
and
19
CcImlJr,ity ~ating. Inc.
3009 Middlefield Road
Pa 1<) "1 to CA 943()5
.. ""
C1ty Attorney. City ()f Palo Alto
p,O, Box 10250
2SO Ha~11eon Avenue
Palo ~lto CA 94303
f}.1.: HIS) 329·2645
Th!s tea~ Includes the follo-ing exhibits. lJlich are attactJed hereto and by this
refereoce incorporated into this lease:
Exhibit A • Ge<1eraJ Conditions
Exhibit S • Oescriptic<! ~f leased Premises
The inclusion of clauses in E"'~ibit ). (G£NERAl CONDITIONS} is not f~ any >la]
Intended to lessen ti'oe l"J'O"tance of these clauses. b~t is merely done to enhance
the organization Of .ariaus clauses and this lease.
1M lo'ITlIESS lmERffJ'. the parties have executed t~i s lease the day and year first
above ""I Hen .
TEIiAliT :
aTY a= PALO ALTO (LESSOR)
BV::---:,:~~ ___ _
~yor/Citj Manager
BY:
Its:
U:-~'J:/~ 20
ATTEST:
BI" _________ _
City Clert
APPROYEll AS TO fCl!!l:
By' ___________ _
SenIor Asst. Cit! Attorney
PRCJI>[J(TY llESCRlPTlOli APf'ROYEl):
~::~~--~~~----
pubHc ',IOrislEngineerlng
RECOIt£lIlEO feR APPROVAL:
By:--------
{)irecta<'. Socl il1 and Camluni ty
Services
By::----:-:---
Ili rectO<' of finance
or hi S or her successor po5 it; on
BY:::-~_-:--:-:-___ _
Real Property lIanager
6y;::-:--_______ _
Ri sk lIanager
:U-U!IIS8S"/~
'k·:-./ ... ;;
":---.c
By: __________ ~ ____ _
Its:...,.. ___ ~,,_,_---
(Corporate Seal)
21
... -," ....
1. OCfINlTIONS (Rt 27.1) S
CITY sllall rean the Ctty Cooncil of the Cit] of Palo Alto. a l!lII1icipal corporaUon.
The Cft] .'tanager is here!ly al<thorized to ta~e any actions oroer this lease Ofl
behalf of (ITt except (0<" termir,ation of this lease.
Clauses in this lease refer to specific officers Of' employees of (ITt. 5OO;,d
these po$itloos be eliminated 0<' the title changes. It Is understood and agreed
tllat such references ~all be cC<lSidered to be to the new title for renarocd
positions or to the replacement official designated .nth the responsibilities of
any eliminated position. kly refereoce to a City officer or employee includes a
refereoce to tr~ officer's or employee's designated representative.
2. PAR-rn~lP/C®'OAATE AlIIlfJ<lTY & lWHLlTi (RL ~) .2) 5 _
If TBW!T is • partnerShip. each general partner:
A. represents and ,,-arrants tr.at the partnerShip is it duly qualified partnerShip
authorized to do business In Santa Clara Couoty: and
S. slla11 be Jointly and severally liable fO<' perf<><'ll\ance of the tet'l1S and
provi s for,s of th i s tease.
If TENANT 1S a corporation. ead! individual signing this lease 0<1 behalf of TO/ANT
represents and ~arrants that:
A. he is duly authorized to do so in accOl"dance Wltil an adopted Resolution of'
TE~.A!I1·S Board I)f llirectors or in bccordance .nth the BJlaws of the
cOI"poration: and
8. TENANT is • dulJ qualified cocporatroo authorized to do tx.'Siness in State cf
Califocnia.
As ~ in this tease. the term ·TE.'!-'IW shaH include TENANT. its
agents. sub1esSC'es~ {;oncessi'OfIaires. Dr licen~. Of' any person atti"ng under
cOfltract ~ith TENANT: 1Jo;;ever. tne definition of TENlWT used herein. shall not be
construed to authorize or pennit any sublease 01" licenses not authorized or
22
~-.
pennitted else..tlere in this lease.
3. TIME (Rl 27.3) S
Time is {If the ~sence ()f this lease.
4. SIGNS {Rl 27.~) S
TENAi(f agrees not to construct. maintain. or anew any si9l' to be placed upon the
PRfMISCS except as may be approved by un. Unapproved signs. b-lr0i""2rs. etc .. NY
be l'€Il!Cived by (In.
5. I'ER'1ITS AAD liCENSES (Rl 27.5) S
TEAA'rr sha 11 be requ; red to rota i n any and a 11 penni t 5 andlor 1 i censes ..nl etl .. ay
be required in :comection with the operation' llf. and any approved TENANT
construction upon. the PR9IISES as set forth in this tease.
6. MECHAIHC'S HENS {Rl 27.6} S
ITNAIfi shall at all times irn!enr,ify and save (In harmless from all daims fO<'
labor 01' ... terials supplied in connection vith constn.'Ction. repair. alteratioo.
()(' installation of structures. l"l"'OVeme'lts. equipment, 01' fOCi li ties within the
PRflHSCS. and from the cost of <lefending against such claims. including attorneJ
fees. IT!W(f 511a11 provide cln with at least ten nO) days written !lOtice priO<'
to commencement cf anJ wort ~ich could give rise to a mechanics lien or stop
notice. cln reserves the r,gIlt to enter upon PIl£KlSES f.'Y the purposes of posting
lIotices of Non-Responsibility_
In the event l lien is i~ upoo the PREMISES as a result ~f such construction.
repair. ilter.tion. or installation. TENANT shall either:
A. Record a .alid Release of Lien; or
S. lleposit sufficient cash ><ith ern to cover the alllliJnt of the claim 00 the
lien in question and aut~orile ~ayrrent to the e><tent cf said <1.0p0sit to) any
subsequefit juclgmen.t hillder that may arise as a matter of public record frem
litigation ><ith regard to lienhillder claim: or
t. Procure and record a bord in accordance ><i th Sect; on 31 ~ of the Ci vi I COOe .
• -'
.--. '. ., ~
•. >
•
.' , ,,--.
. .
-"< :--..,-
whlch releas.es the PR£~ISl:S feCAll the cloim of th~ ,ien from any action
brought to foree lose the II en.
ShOuld TEtWIT fan tl) ac<:~1ish ore of the three optiOl1al ~ctions .,;thin fj fteen
(15) dajS after the filing of such a lien, the lease shaH be in default and may
be subject tG il1l1lediate tenllinatian.
7. tEASE ~!lAJII)j AND RIUS OF CONSTRIXTION (Rt V.I) 5
IiOrds of the ... sculil1e <:lender shall be deemed and c<:>1Str'.l_"<f tQ include correlative
1oIOI"ds of the feminine and neuter genders. !Jnless the cOfltext otherwise indicates.
-..or0s ill\lOrting the singular nUlltPJ' shan ir<:1ude the plural n\J1W and vice versa.
and words inQOrti.ng perSOIlS shaH include corporations and associatiOflS. ineludinjj
public bodies. as well as natural persons.
The terms "hereby". "hereof". "hereto". "herein". "hereunder" and anj Similar
teM1S. as used in' this agreement. refer to this agreenent.
All the renos and pro.lSions hereof shall be construed to effectuate the purposes
set forth herein. and to sustain the vaHditJ hereof.
The titles and headings of the sections <Jf tMs agf'eenent have been inse,ted for
cooYe!1ience of reference wIy. are not to be c'l!1sidered a part hereof and s~all not
in any "'Y rodif1 or restrict any of the te<1!>S of p<"O'iisions herecf or be
consIdered or given any effect in cQIlstruing tois agreement or any proviSion hereof
In .kertaininjj intent. if any questiQll of intent shall arise.
8. AltENJ)t£NTS (Rt 27.8) S
This lease sets forth all of tr.e agreements and undErstandings of the parties and
any lIOdiffcations 1IlJst be written and p<"operly executed by both parties.
9. UUWflA.;r~ (Rt 27.9) S
TENMT agrees that no irrprovements shall be erected. plaCed ujXlr1. operated. nOf
"aintalned 'llithi~ the PRfMlSl:S. nor anj busir\eSS conducted or carried 00 therein
or therefrom. in "olaUon Gf the terms of this lease. or of any regulation. ord.er
of law. statute. Dr ordiMoce of a government.~ agency havinjj jurisdiction over
TENANT'S use of the PRE.~ISl:S.
24
II ,.'
IS. NOODISClUMIAATION (Rt 21.10) S
TE1WIT and Its efI!lloyee$ sha1J not discrimi""te against any pef'S<)(1 because of race.
color. religion. ancestry. age. sex. national orIgin or pIlysical handicap. TENA'IT
shall not ~i5':ri.minate against an) e<l"()loyee 01" applicant fO\"' e<l91cyment re:ause of
race. color. rellgfon. ancestry. sex. age. ~atjcnal origin or physIcal handicap.
TEPIAHT covenants to meet all requir€lll€nts of the Pilo Alto MunicIpal .. Code
pertaining to noodiscrfmir<itfon in ~loyment. If T£N.AHT is (OI.'flo:l in .iolatlon {)f
the noodiscr!mination provision of the State of Califomiil fair El!ployment
PracticES A..-t 01" Similar proviSions cf federal 1 .... 01" executhe onier in the
conduct of its acthitfes under thIs lease by the Sute of CalifOl"nfa Fair
~lPlqyment Practices Commission 01" the equi.alent federal .gerC! 01" officer. it
shaH thereby be found in default under this lease. and such default sh.lll
corrStltute a I1i!terial breach of this lease. CITY shall then t,ave the power to
cancel 04" suspend this tease in -.hole 04" in part.
11. INSPECTION (RL 27.11) S
tITY'S e<l"()loyees and agents shall ~a"e tl'e right at all ri!asooable times to inspect
the PREI'IiSfS to <letenoine if the provisior.s of this tease are being c~1ied IoIith.
12. !nD HAA:'ilESS (RL 27.12) S
TEIiAH1 flerelly waives all claims. liability and recourse against CITY including the
right of contribuUOi1 for Joss or damage of or to persons or jlf'operty arising frOOl.
9l'o..'ing out of or in any way cOfll1eCted ..-ith or related to this a!)f"eerent. TENANT
hereby agrees to indeilr.ifl. floJd hanoless and defend CITY. its officers. agents.
and el!ployees against any and all ciail!lS. liabl1lty. demands. damages. cost.
expenses or attorneys' fees arising Ot.t of the operation or maintenance of the
property described her.in or WWWS performance 01" non perfon-oance of the terms
of this tease. In the event cln is named as co-defendant. TEN!\NT shall ret!fy
CITY of such fact and shall re;;reSJ!nt C1rt in such legal action unless CITY
urnlerta;;es to represent itself as co·defendant in such 1egal adior. in 'ollich evert
fENAKT shaH pay to CITY its litigation costs. expenses and attorneys' fees.
13: TAXES A.~!}}'SS£SSM£»"rS (Rt 27.13) S
This lease ""'1 create a possessory lJ1terest .,hich is subject to the payment of
taxes levled on such interest. It is understood and agreed that all taxes and
assessments (i~luding but not limited to the possessor)' interest tal<) 'o<hich re:ome
oS
I
I
I
I
•
due and payable upon tf1e PREMISES or upon fixtures. eQuiporent. or other p!"operty
irn;tal led or constrloCted tf1ere<)fl. snall be the fun respoosibll ity of TEAAN! and
ITNA.n shall pay the taxes and assessments priO<" to delin'P'ocy.
14. SOCCESsa;s l~ INTEREST (Rt. 27.1H S
Unless otherwise provided in this lease, the terms. co~enants. and conditions
conhioed herei~ slla11 apply to and bind the ,""irs. successof"S. executors.
a.",jnistrators. and assigns of all the perUes ~eret(). an of whorn 50all be jointl,
and severally liable hereunder.
15. CIRClJISlAIUS ",HO! EXCUSE
11.1S} S
PERfOPJlANCE (Foo(E MAJEURE) (Rt.
If ei ther party hereto sha 11 be delayed or p<"evented from the performaoce of any
act required hereUnder by reason llf acts of Goo. restrictive goverrvrental laws or
rl!glJlatiOllS. or {)ther cause >litOOut faolt and beyond the cootr01 of the party
obligated {financial inability excepted). perf~T1Ce of sloCh act sllall be excused
for the period of the de1.y and the period [0<" the performance of any such act
sha 11 be ext enaed for i peri od equiv a I ent to the per i ocf 0 f such ae 1 ay.
16. PARTIAl INVAl!DI'y CRt. 27.16) S
If any term. covenant. condition. or p<"ovisiOl1 {)f t~is lease is determined to be
jr.v3lia. voio. or unenforceable. by i court of coo.petent jll<isdictian. the
remaincfer {)f the provisions Mr€Of shall remain in full fO!'ce and effect and shall
in no way be affected. impaired. or invalidated tMereby.
The fiilure of CITY or TENANT to insist upon strict performance of any of the
tenos. covenants. or conditions of this Lease st,all not be deemed a waiver of any
rlght or remedy that Clit or TENA.'IT "'Y h"e. and shall not be deemed i waiver of
the right to require strict performance of all the terms. coverants. and conditions
of the Lease thereafter. nor a ·.ai.er of any remedy for the subsequent breach or
default of any term. covenant. or Condltion of the Lease.
26
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18. COSTS fF SUSTArNI~ .Ali ACTlOO
(RL 27.1S} S
" "
OR OCfALU
In the event either CITY 01" TENANT CGIl1lleflCes legal actiQl1 agajnst the other
cla!mln,n breach Q/" def;wlt of this tease. the prevailing part)' in such l!tlgatioo
shaH be entitled to recover from the other cost cf sustaining such action.
including reaSOl'lable attorne), fees. as rna) be fixed by the eourt.
19. RES€RI'ATlO!lS TO CITY (Rl. 27.19) S
The PRE.~1SE5 are accepted "as 15" and "..nere is' by TENANT sUbJect to any and all
existing easements. and encumbrances. CITY reser,es the right to install. lay.
construct. minta1M. repair. and operate such sanital)' sewers. drains. stana water
se.oers. pipelines. manholes. and coonectiOflS: water. oil. and gas pipelines:
telephone and telegraph power lines: and the applications and appurtenances
necessary or convenient for coonection therewith. in. "".r. upon. t~.rough. across
and 11009 the P?£JoIIS£S or any part thereof. and to enter the PR£IIIS£S for any and
all such purposes. en)' also reser.es the right to yrant franchises. easements •
.rights of way. and permits. i~. ",er. li!lOO. thro.ljl. across. and along any and all
portIons of the PREMISES. No rig/lt reser·,ed by CITY in this clalJse shall be so
exercised itS to interfere ur.reasonablJ .. ith T£HANT'S operation hereunder.
(ITY agrees that rights granted to third parties by reason of this clause shall
contafnp.-ovisioos that the surface of the land shaH be restored as r.early as
practiC4ble to the 0I"19inal condition lJ!XlI1 the c~letion c( any construction.
In the e~em. TE'W'IT sf,all c(JIlti,,,e in possession of the PRDlIS£S after the term of
the lease. such possession shall not be considered <I rere.oal af this lease but a
tenancy frOll! ronth to month and shall be governed by the conditiOflS. and covenants
contaIned in tI1is lease.
21. CONDlTIOO fF PREMISES UPOO TERMINATION (Ri.. 21.2U S
Upon te .... ;naUQl1 of this lease. except as otherwise agreed to herein. TENANT shall
redeliver possession af the PREMISES to CITY in substantially the same condition
that existed iJllllediateiJ prior to TEtWlT'S occupancy. reasonable -.rear and tear.
flood. earthqual;e. war. and any act of war excepted.
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22. DISPOSITION if ABl>NW<E!l PERSONAL PROP£RTY (Rl 27.22) 5
If TENM. abandons the PR£~JSES or i s dispos~ssed thereof by process of law or
otheN"ise. title to any personal property be11Yl!ling to TE~T and left 011 the
Pili/USES forty·flve (45) days after such aba~ment or dispossession s~an be
<leemed to ~ave ~ transferred to {ITY. CITY shall hay. the right to rerro,e and
to dispose of suc1l pmpertj witf100t lfability therefor to TE~ or to any person
claiming under TE~. and shaJ1 have no need to account therefor.
n. \lU1TCI..tJ~ OF TElW.T'S INTEREST UPON TERMINATION (Rl 27.n) S
Upoo tenoinaticn of thls tease for any reason. including but not limited to
te('IJinat;O!l beca~ of default by TENANT. TENANT Shall. at CITY'S request execLite .
• c"""'ledge and deliver to CITY within five (5) days after receipt of written
demand thereof. a good and sufficient deed .mereby all rights. title. and interest
of TENPNT in the l'REl'!iSES. is q<litclaimed to CITY. Sf1oo1d TENANT fail or refuse
to c!e1iver tne r'€qUired deed to {ITY. CITY rey prepare and record a rot;ce reciting
the failure of TENANT to execute. aC~nNledge and del ivY such deed and the rotice
shall be conclusive evidence of the termir,ation of this tease. and of .n rigrot of
TENANT or tho<..e clai'ing under TENANT in ana to the PPEl'!ISES.
24. CITY'S RIGHT TO RE·ENTER (RL 27.24) S
TENANT agrees to yield and peaceably deliver possessfon of the Wil1ISES to CITY on
the date of t....,in,tion of this tease. whatsoever the reason for such terminat;O!l_
Upoo givi.ng ""itten rotlce of termination to TENANT. CITY shall have the right to
re-enter and take jlO5sessior of the PREllISES on the date such teMllinatfon become,;
effective "ithout further notice of any kind and without institLition of regular
legal proceedings. Termination of the lease and re·entryof the PREM1SES by CITY
shall i.n roO way alter or diminish any obligation of TEN,t..~T under the Lea~ terms
and shall constftute an acceptance or surrender.
TEw.lIT waives any and all rights of redel!ption "",ler af1jl existing or future law or
statute in the event of eviction from or dispossession of the PREMISES for any
reason or in the event CITY re-enters and , ... fu11y fe-takes possession of the
PRE~JSES.
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25. CONFliCT OF INTER!:ST (Rl 27.25) S
TEWINT ...arrants and covenants that no officU' or ~loyee of CITY nor a~y business
entity in .. Men any ofHcial or e<rployee of CITY is interested: (l) has been
€I!Jlloyed"or retained to solicit or aid in the procuring of this agreement: or (2)
will be employed in the performance of this ag<eemeI1t without the dlvulgence of
such fact to CITY. In the e",ent t~at CITY detenoines that the e!Illl<:>yment of any
slJCll offIcial. employee or business entity is not wrpatib1e 'oith such C>ffici~l's
or e<l'ployee's &'tles as an official or employee of CITY. TENANT upon request (if
CITY sI-.. n inmedlately terminate such emplo)'lM1t. Violation of this provision
constitutes a serious breach of this tease and CITY may tel'llinate this tease as a
result (if suc~ violatioo"
26. OUNEIIT COlAIK (Rl 27.26) S
In the event the ..nole or aref part of t~oe PRE/USES are condelmed by a public entity
in the lawful exercise ()f its power of eminent domain. this lease shall cease as
to the part coodelllled. The date of such termination shall be the effective date
of possession of the "".ole or part of the Pil9IISES by the coodellrling pcbHc entity.
If 001J • part is conderrned and the coode<rni!tion of tMat part does rot
s~tant!al1y illpOir" the capaclt] (if the remainder to be lJSed for the purpos.es
required by this lease. TENANT sl1aH continue to be lJoor.d by the tenns, covelli!nts
ard conditions of this lease. l1co.ever. the then current o;ni_ amual rent shall
be reduce<! tn p<"opoI'tion to the relationship tr.at the cOf19<!!1satloo paid !ly the
condenrling public entity for the portion cC<ldenrled bears to the nlue of the ertir.
PReUSES as of the dote of possession of the part coodellrled. If the condemnation
()f a part of the PR9IISES 5uDstantial1, impairs the capacit! of the remainder to
be used for the purposes require<! by this lease. TENANT may:
A. Tenninate th;s lease and therety be absolved of obligations under this lease
..nien ha.e not accrue<l as of the <late of possession tl the condemning public
entitl: or _
B. Continue to occupy the remaining PR9IISES and thereby cor,tinue to be bound
by the terms. cover",nts and cOilditions of this lease. If TENANT elects to
continue in possession o·f the remair,<l€r of the PREMISES. the then currert
annual .inillUO rental sI1dH be reduced in proportion to the relatiorship that
the c~sation pid by the conde!lJ1ing public entity for the "part cOfldellroed
bears to the .alue of the entire leased PR!:M1SES is of the date <:Jf possession
by t~oe cOl'l<lel1rling pOOl;c entIty.
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TOIANT shall pl"O'Iide CITY '':th written notice advising CITY of TENANT'S choice
wit11lr. tMrty (30) days of possession of the part condemn~.j by the con.:lern!1ing
poIl!ic entity:
CITY shall be entitled to and snaH receive all compensation related to the
conderr",tion of all or part of the PREi'!ISES by the exercise {)f eminent domain
except thilt TENANT shall be entitled to tr.at portion of the c()IIl>ensation ..mfcn
represents the va1ue of the TEl\.o\NT coostructed i"""o,_nts for the remainder 'Of
the lease term. The a:oount to ..mien lENA 'IT shilll be entitled shall not exceed the
actual cost of lnvO'lernents coostrocted by TENANT reduced in proportion to the
relationship of the ranainlng lease term to the 0.-igina1 tease tera. USil19 a
strilfgllt line approach.
27. owas IN PRIC!: INDICES (Rl 27.27) S
<lauses c()(!tained in this lease may pl"ovide for adjustmeflt based 00 the Consumer
Price Index. component indices. Of' other indices_ 5hoold these indices be changed.
a1tered or cease to be published. the f0110wing conditions shall apply:
A. If the subject index is changed so that the base year differs frac thilt used
as of the month in ..mien the teflll COl1l1lences. the subject index shall be
converted in accordance with the cooversion factO<' published by the publisher
of that index:
8. If the subject index is ~iscontinued or ,e.,sed during the Lease term. such
index shilll be replaced by another govemnent i n<lex or c~a t ion -.t" eh wi 11
ootal~ substantially the same result as would be obtained if the subject
Index had not been discontinued 0<' revised.
28. PCST-ALOOIS!TlOl TEAANCY CRt. 27 _28) S
TENANT hereby aek"",,'ledges that its occupancy af troe PRE~ISfS is subsequent to
acquisitioo of the PR£JoI1SfS by CITY. TENANT f'-"'thee understands .nd a!l"ees that
as a jlO$t-acquisitioo tenant. TENAlH is not eligible and furthertJ1O<'e waives .11
claIms for relocation assistance and benefits Uf'.der federaL state or local Jaw_
29. IW.ARWJS SUBSTANCES (Rt. 27.29) S
A. !lefi!Jill.Qll-As used herei n. the term "Hazardous ilater! a 1 s· means any
subst"",e 0<' material ..mien has been oetermjr,e1 bj or,), st.te. federal ()f
local govemr.ental authoritJ to be capable of posing risk of injUf'Y to
health. safet). and pl"operty. inclllding yetrele"" and petroletn products and
30
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all of those materials and substances designated as hazardous or toxic bJ t~.e
U.S. £nvirormental Protection Agency. the California liater ()Jal1t~ Cootra)
Boar<1. the lI.S. Department of labOr. t~e Cal; fornia Oepartll'ent of Industrial
Relatfons. the California !Jepartment of Health Services. the California
~alth and llelfare ~y ir. connection ..nth the Safe Water and Toxic
fnforcemef1t Act of 1986. the U.S. Department of Transportation. the U.S.
Department of ,lQrlculture. the U.S. Corsuner Product Safety Comission. the
1./.S. Department of Health and Human Services. the U.S. food and {)rug
Mninistratlon or any other governmental agency now or hereafter authorized
to regulate ~oiIterhl$ and sc.tstances in the enviroonent .. Ioiithout limiting
the general1ty of the fore9Qing. the term "Hazardous Mdteria15" shall inclLK1e
all of those materials and substances defined as "toxic materials' in
SectiOf1s 6668(J through 6OQ85 of Title 22 of the California Code of
Regulations. Division 4. Chapter 20. as the same ilia] lle arended from time to
time.
8. ID{W'S LIse Qf P!If~!SI;S-{)Jfir>:l the ter:l of this leaS<!. TEW-ill shall abide
and be boona by all of the follo'oling requirements:
1. TowrT shaH cOl1l'l, ..nth a1 \ 1aws now or hereafte<' i. effect relating
to the ",se of Hazardous Mdterlals on. under or about the PRelISES. and
T'tN.ANJ shall not contaminate the ~ISES. or its subsurfaces. with any
~azardol!s l"aterlals.
H. TENANT s~all restrict its use of Hazafdous Haterials at the PREMISES
to those kinds of materials that are oon>Jlb used in constructIng th<i
Project. Oisposal of any Haz3rdous ~ateria1s at the Premises are
str.ctly po-OOibited. storage of suc~ persfSsible ~azardous Materials
is illo.ed only in ~cordance -.nth all applicable laws new or hereafter
in effect. 1,11 safety and l!1O!litorlng features "f any storage
facilities ~all be approved by CfTf'S fire Chief in accordance with
an laws.
11i. TEHAI<'T shaH lle SOlely and f.11y reslXJ!1Sible fO<' the fe:x>rting of all
!{aza~ llateriah releases to the app<'Op<iate publ ie agencies. ,.t,en
such releases are caused by or result from TENANT'S activities on the
PREMISES. TENAIofT shall inrrediate1, infors ern of any release of
P.azardous Materfals . ..r.ether or not the release is in QUantities t~..lt
\!-'OUlii othe....r!e be repC<"table to a public agEnCy.
fY-TENM-'T shall be solely and fully responsible and liable fO<' such
releases at the I'remlses. or into tln's sewage or stO<1ll dralnage
systems. rE~T shall take all necessary precautions to prevent any
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of its Hazardous Materials from enteri~ fnto any stono 0<' sewage drain
system 0<' frOl1 t>ein<] released on the Premises. TENANT shall remove
releases {)f as ~.azardous Materials in accordance ",ith all laws. In
addi t Ion to ~ 11 other ri ghts and remedi es of CITY hereunder. if the
I'elelse of Hazardous Materials caused by TENANT is not removed by
TENANT -.nthln ninety (90) days after discovery by TENANT. CITY OI'·.ny
ot~er third party, CITY may pay to have the same removed and TENANT
shall rei'llburse CITY fO<' sUch costs -.nthin five (5) days of CITt'S
de<oand for P<l)1re!1t.
TENANT shall protect, defend, ii1den>'!ify and hold harmless CiTY from and
against all loss. d~~ge, or liability (including all foreseeable and
Uf1foreseeoble consequential damages} and expenses (including. ",.;thout
limitation, the cost of any cleanup and remediation of Hazardous
Materials) .mien CITY may sustain as a result of the presence or
cleanc'P of Hazarlloos l!aterials on the pp,£lnSES.
JT.,NANT'S ooligatlon under this Clause shan survive the expiration or
I?arlier tereinahon of V,is lea~.
30. All CIl'IENANTS AAE COOD!TIONS (Rt 21.30} S
An provisions <l-f the lease are expressly made conditioos.
31. PAATIlS ~ I~'TER£ST (Rt 2,.31) S
Fiot~~ing in thYs agreement. expressed 0<' implied. is intended to. 0<' snall t>e
construed to, confer upon if to gi~e to any person or party other than crn and
TeNANT the covenants. condition or stipulations hereof. All covenants.
stipulations. p,-OIl'ises and agreerner,ts in this lease shdll be fO<' the scl~ and
extlusi •• terefit of tITY and Tt~,.
32. Ill:CORDATION ~ tEASE (RL 27.32) S
Neitr"", CITY nor TENANT shall record this lease; however. a short·fonli memo<'dndum
of lease .,ay be recorded at CITY'S reque,t.
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A.P.NO. 127-53-15
PRE FARE BY: J. ~IEHL
CHEC~ED BY: J. BOIJRQUIN
APPRO\'ED BY: J. REMLEY
DATE: JULY 13, 1~92
8eqinnlnq at the centerline of Matedero creek; said point being
Korth 41 0 13' 54" East, 261.62 feet trom th& inter~ection of the
lIortheastsrly line of lIiddleUeld Road vit!> the centerline of
Matadero creek as shown on that certain .ap entitled ·Parcel Hap
Being • R""u!>division of • Portion of Lot 74 of C.II. wooster
COapanY'a Subdivision-recorded Y.arch 29, 1973 in Book 32-G of Haps
on Paqe " Santa Clara eocnty Official Records:
Thence alonq the centerline of said Matadero creek North 41~13' 54"
~st. 2~1.91 feetJ
Thence SOUth 520 00' 00-Eest, 32-8.21 feet:
Renee SOUth 38" 00' 00' West, 162.00 feet:
Thence North 52° 00' 00' West ... 197.86 fectl
Thene. SOUth 380. 00' 00" West, 96.59 feet;
Thence Korth 52" 00' 00' I!est. 172.38 feet 1:0 th .. Point Of
Beginning.
containing 1. 634 acres IIOre or less of land .. nd Being .. portIon of
Lou 74 and 75 as shovn OIl tIlat certain lUp "ntitled ·C.II. wooster
Company'. SUbdlvisioa of the Clarks Ranch-recor4ed Rov2aber 11,
1912, in Boolt '0' of Kaps on Poqe 16 of sant .. Clara. county Official
Records,. together with the use of a COIIJIWn drive described as
fOllOWS:
Beqlnning at .. point on tll .. ~rth .. asterly line of lIiddlefielc! Road,
.. dd pol"t being SC .. th 52-00' O<l" East 206.85 feet frOll !:he
inters~lon of the centerline .of Mata4aro creek with the
aortbeasterly line of lIiddlefielc! Road,
Thence North 38° 00· 00" East... 153 .. 00 feet:
2 .. 50 feet~
Thence North lSO 00' 00· East, 22].82 feet:
UHIiII B
(I of 3)
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,
'1'llence SOUth 520. 00'
TIl..,..,. South 38° OG'
'l'ber.ee lIorth 520' CO'
Thence SOUth 38'" 00'
'l'henca Sout.h 3<:0 52'
00· East,
00· West,
00· West.
00· West,
30· West.
85.00
20.00
65.00
151. 82
20.16
A.P.MO. ~27-53-15
PREJ'ARl! BY, J. Jl:IERL
C!lECKE~ BY: J. BOU'RQQIII
APPi10VED BY: J. REMLEY
PAT!: Jt~Y 13, )992
reetl
t.et:
teet;
feet;
teEt:
ft.."..,., South 3(> 00' 00· West, 183.00 f"6t to the Point on We
lIortllaasterly line of sdd Kiddlefield Road:
~tlence JIortll sf' 00' 00· lIest, 20.00 feet to the point of
Be91nr.i h9. "
EXcept1h9 there frca a po.-tion of that certain Flood Control and
Stan Eas_nt ae..."'Orded in Book U65 on P.ge 1 of ~ta Clara
OOWtty Official Reoor6s and lyih9 SOUtheasterly of the
JIortbVesterly line of the ",bOvs described parcel.
E3It) OF DESCRIPTIOII
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