HomeMy WebLinkAboutResolution No. 5422RESOLUTION 5422
RESOLUTION AUTHORIZING AN AGREEMENT TO
RENT DURING PERIOD OF FIVE YEAR OPTION
WHEREAS, on November 5, 1962 the City of San Rafael, here-
inafter referred to as City, entered into a lease that is filed
with the City Clerk in file 2-8-12, hereinafter referred to as Lease,
with the Shell Oil Company, a Delaware Corporation, hereinafter re-
ferred to as Shell; and
WHEREAS, said Lease provides that Shell has an option to
renew the lease for a period of five (5) years past the expiration
date of March 16, 1978; and
WHEREAS, Shell notified City by certified mail dated Septem-
ber 8, 1977 that the option was being exercised; and
WHEREAS, the Lease provides, inter alia, that the monthly
rent during the option period shall be a sum equal to One -Twelfth
(1/12) of seven percent (7%) of the appraised value of the land
only as determined by three (3) disinterested appraisers, but in no
event shall the monthly rental be less than the rental paid during
the preceding original term; and
WHEREAS, City staff has reviewed the lease and land values
and recommends the City accept a rental for the option period based
on the rental paid during the original term, namely two cents (20
per gallon.
NOW, THEREFORE, BE IT RESOLVED the City Council does hereby
authorize the Mayor and City Clerk to notify Shell that the City
will accept rent at the rate of two cents (20 per gallon during
the five (5) year option period commencing March 16, 1978.
I, JEANNE M. LEONCINI, City Clerk for the City of San Rafael
hereby certify that the foregoing resolution was duly and regularly
introduced and adopted at a REGULAR meeting of the members of said
Agency on the 21st day of February 1978, by the following vote,
to wit:
AYES: MEMBERS: Mi skimen, Mul ryan, Nixon and Vice -Mayor Jensen
NOES: MEMBERS: None
ABSENT: MEMBERS: Mayor Betti ni
J NNE M. LEONCINI, City Clerk
L E A S E
THIS LE.ASE, dated November 5th, 1962, between THE CITY OF SAN RAFAEL of The Ci ty
Hall in San Rafael, Cdlifornia, (herein called "lessor", whether one or erre), and SHELL
OIL COMPANY, a Delaware corporation with offices at 100 Bush Street in San Francisco,
California, (herein calleJ "Shell"),
1+ITNESSETH:
1. DEMISE: Lessor hereby leases to Shell, and Shell hereby leases from Lessor,
the following described land (herein called "the premises") situdted at the Southeast
Corner of Second Street and Lincoln Avenue in San Rafael, County of Marin, State of
Cdlifornid, dnd more particularly described as follows:
PARCEL ONE
BEGINNING at a point on the Southerly line of Second Street distant thereon
South 831' 40' East 15.00 feet from the Westerly line of the lands described in
the Deed from John 14. Mackay, et al to City of San Rafael recorded October 26,
1898 in Book 53 of Deeds at page 282 in the office of the Recorder of the County
of Marin, State of California, said Westerly line being described In said Deed
as "the Easterly line of Petaluma Avenue"; running thence South 831, 40' East
along said line of Second Street 113.048 feet; thence leaving said line of
Second Street South 530 09' 30" East 53.981 feet; thence South 390 20' West
96.058 feet to a line drawn parallel with and perpendicularly distant 108.00
feet Southerly from said Southerly line of Second Street; thence North 830 40'
West along said parallel line so drawn 122.218 feet to a line drawn South 60 20'
West from the intersection of said line of Second Street with aforesaid Westerly
line so described in said Deed to City of San Rafael; thence North 60 20' East
93.00 feet to a point; thence Northerly, Northeasterly and Easterly along the arc
of a curve to the right tangent to the preceding course at last said point, having
a radius of 15 feet and a central angle of 900 00' a distance of 23.562 feet to
t;ie point of beginning.
RESERVING THEREFROM, an Easement unto the City of San Rafael for the main.
tenance of a sanitary sewer under a strip of land 10 feet wide, lying 5 feet on
each side of the following described center line: BEGINNING at a point on the
Southerly line of Second Street distant thereon South 830 40' East 86 feet from
the Westerly line of the lands described in the Deed from John W. Mackay, et al
to City of -an Rafael recorded October 26, 1898 in Book 53 of Deeds at page 282
in the office of the Recorder of the County of Marin, State of California, said
!westerly line being described in said Deed as "the Easterly line of Petaluma Avenue";
running thence South 530 09' East 89.4 feet more or less, to the Southeasterly
line of the lands above described.
PARCEL T.-10
An Easerent, for the -term of this lease, over the following described parcel:
BEGINNING at a point on the Southerly line of Second Street distant thereon
South 03" 40' East 128.048 feet from the 'Westerly line of the lands described in
the Deed from John W. Mackay, et al to the City of San Rafael recorded October 26,
1098 in Book 53 of Deeds at page 282 in the office of the Recorder of the County
of Marin_ State of California, said Westerly line being described in said Deed as
"the Easterly line of Petalurla Avenue"; running thence South 530 09' 30" East
53.981 feet; thence North 390 20' East 7 feet more or less to the Southwesterly
lisle of Francisco Blvd. (fornerly Toll Road); thence Northwesterly along saia line
of Francisco Blvd. 43 feet more or less to the Southerly line of Second Street;
thence Korth 3311 40' West along said line of Second Street 11.052 feel more or
less, to the point of beginning; for the purposes of ingress and egress, by Shell,
its lessees and its and their licensees and invitees, to and from the premises
adjoining the above described premises on the South; together with the right to
construct, naintain, replace and renove a floodlight pole and a drivl-w3y on the
ejseo.ent premises. Neither Lessor nor Shell shall park vehicles in or obstruct
the easement premises or permit the parking of vehicles in or any other obstruction
of the easement prenises by its lessees or licensees.
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2. TERM: The term of this lease shall begin on the date the premises
are delivered to Shell, cleared and with title satisfactory to Shell and all
licenses and permits in force and effect, as hereinafter provided, or on
Mdy 1, 1963, whichever shall first occur, and shall end fifteen (15) years
after the date of completion of Shell's construction of an automobile service
station on the premises, but not later than fifteen (15) years and ninety (90)
days after said beginning date. Shell shall have an option to extend the tern
of this lease for one (1) additional period of five (5) years on the same
covenants and conditions as herein provided except that the monthly rental
for such additional five (5) years' extension period shall be a sun to be
mutually agreed upon by Lessor and Shell _at least one hundred fifty (150)
d-ays prior to the expiration of the original term, and failing such agreement,
shall be a sum equal to One -Twelfth (1/12th) of Seven Percent (7%) of the
appraised value of the land only (such appraised value to be determined as
hereinafter provided), but in no event'shall the monthly rental be less than
the rental paid during the preceding original term. Shell -may exereise.its
option to extend this ie'ase-by--giving--Lessor notice at least one hundred
fFfty (150) days -prior to the -expiration of -the original -term of this lease.
If Snell does not exercise its option to extend, the term shall be automatically
extended from year to year, on the same covenants and conditions as herein
p rov i deJ, unless -and un t i 1 e i -the r 'Lesso-r -or-Shell terminates this lease at
the end of the original term or the then -current extension period or -any
subsequent year, by giving the other at least thirty (30) days' notice.
3. RENT: Shell shall pay, as rent for each calendar month during the
term of this lease, by check to the order of City of San Rafael: (a) the
sum of FIVE HUNDRED FIFTY AND NO/100 DOLLARS ($550.00), on or before the
first day of such month; and (b) an additional sum equal to Two Cents (21)
sum,
for each gallon (if any) in excess of Twenty-SeveThousand, Five Hundred
(27,500) gallons of gasoline delivered to. the premises during such month,
as shown by Shell's records, payable on or before the fifteenth day of the
following calendar month. Rent payments will begin upon the completion of
Shell's construction of an automobile service station on the premises or
May 1, 1963, whichever shall first occur.
4. APPRAISAL: The appraised value of the premises, exclusive of any
improvements located thereon, when and if required, for the purpose of deter-
mining the rent for the five (5) year option period referred to in Article 2,
shall be determined by three (3) disinterested appraisers not less than ninety
(-90) days prior to the beginning of the five (5) year option period. Lessor
shall appoint one (1) appraiser and Shell shall appoint one (1) appraiser
and a third appraiser shall be named by the two (2) so appointed. In the
event either party after demand by the other refuses, fails or neglcds to
appoint an appraiser in the manner hereinabove set forth, such failure by
either party shall be considered by the other party as an agreement on the
part of the failing party to allow the other Darty to make the appointment
of an appraiser for the other party. The appraised value of the premises
as so determined by a majority vote'of the three (3) appraisers shall be
conclusive and binding upon the Lessor and Shell. The expense incurred by
reason of_said appraisement shall be shared equally by the Lessor and Shell.
5. TITLE: Lessor's title to the premises shall be satisfactory to
Sh011 only if and when there has been issued by Title Insurance and Trust
Company a leasehold title insurance policy in favor of Shell in the araount
of FIFTY THOUSAND AND NO/100 DOLLARS ($50,000.00), guaranteeing Shell to be
vested with a good and valid leasehold estate hereunder, free and clear of all
prior liens, encumbrances and other charges, except current taxes and assess-
ments not delinquent. Shell, after its execution of this lease, shall apply
for such title policy; and Lessor shall, upon notice from Shell, do Whatever
may be necessary to clear Lessor's title to the premises so that such title
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policy may be issued. If such title policy is not issued within thirty (30)
days after the date of this lease, either Lessor or Shell at any time there-
after and before said title policy is issued may terminate this lease by
giving the other notice.
6. PERMITS--CLEARItIG--POSSESSIOPI: Shell, immediately after its execution
of this lease, shall apply for and endeavor to obtain from the proper public
authcrities all licenses and permits necessary to authorize the clearing of
the premises and the construction, in accordance with Shell's plans and specifi-
cations, and operation thereon of an automobile service station. If such
licenses and permits are not obtained within sixty (60) days after the date
of this lease, either Lessor or Shell at any time thereafter and before said
licenses and permits are issued may terminate this lease by giving the
other
notice. Lessor shall clear the premises of all structures, personal
perty
and rubbish, and deliver to Shell possession of the premises so cleared,
within fifteen (15) days after notice from Shell that the aforesaid licenses
and permits have been obtained; and if Lessor fails so to do, Shell may take
possession of the premises, clear the same and charge to Lessor the cost
thereof, or terminate this lease by notice to Lessor.
7. USE OF THE PREMISES: Shell shall have the rights, at Shell's exponse:
to enter the premises, at any time after the date of this lease,
for the purpose
of making investigations and surveys; to use the premises for an automobile
service station and usually related services and to construct and install on
the premises, and paint in colors of Shell's selection, an automobile service
station, and any additional buildings, improvements and equipment (including
advertising signs and billboards, that are permitted by law and ordinance,)
that Shell may desire; and to make any alterations that Shell may desire in
the premises and the buildings, improvements and equipment at any time located
thereon.
8. TAXES --LIENS: Shell shall pay (a) all taxes and other charges on
the premises which are allocable to the term of this lease and the bills for
which have been presented to Shell, and (b) all taxes on Shell's property
on the premises, and license, utilities, and other such charges incurred by
Shell's use of or operations on the premises. Shell shall have the right
to contest, in its and/or Lessor's name, any levy for any tax, or other charge
on the premises; and at Shell's request Lessor shall execute such documents,
make such appearances, and do such other things as Shell may reasonably request
in connection with the prosecution of any such contest. If Lessor defaults,
at any time, in the performance of the obligations of any mortgage or other
lien affecting the premises, Shell may remedy such default, in thole or in
part, charge to Lessor all costs incurred thereby, and be subrogated to the
rights of the holder of such mortgage or other lien.
9. ASSIGNMENT --SUBLEASING: Shell may at any time sublease all or any
part of the premises. Shell may at any time assign this lease with written
consent of the Lessor.
10. ACCESS: If, within the first five (5) years of the term of this
lease, Francisco Boulevard, Second Street or Lincoln Avenue is altered -or changed,
by any action of the City of San Rafael, in any way which would reduce the
usable frontage, as provided by the property description contained in this lease,
then the Lessor will provide Shell with comparable offsetting frontage on any
or all of these streets so altered. Additionally, if either Second Street or
r changed i n any �±anne r ";h! cn ;;cold alter i present
L i ncol r: Avenue is altered o
alignment, then the Lessor shall provide Shell with access to Second Street or
Lincoln Avenue as it is realigned.
11. TERMINATION: If, without Shell's fault, the operation on the premises
of an automobile service station, or the use of the premises therefor, is
prevented, limited or impaired by any act or omission of any governmental
authority, or becomes illegal, and such condition continues for thirty (30)
days; or if such operation or use is at any time impaired or affected by the
r
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closing, relocation, alteration or improvement of any street adjoining the premises;
or if any federal or state highway is re-routed from any such street; or if all or
any part of the premises is condemned for public or quasi-public use: Shell may
terminate this lease by giving Lessor at least thirty (30) days' notice. Shell may
terminate this lease at any time after completion of the service station improve-
ments as approved under City of San Rafael Use Permit No. 965 by giving Lessor at
least ninety (90) days' notice.
12. REMOVAL--SURRENDER--FORFEITURE: All buildings, improvements, equipment
and other property constructed, installed or placed on the premises by Shell or
acquired by Shell, at any time during the term of this or any previous lease or
any extension thereof or any tenancy thereafter, shall be and remain Shell's property,
and Shell shall remove any or all of the same from the premises at any time during,
and within fifteen (15) days after any termination of, this lease or any tenancy
thereafter. At the termination of this lease or any tenancy thereafter, Shell shall
surrender the premises to Lessor, subject to ordinary wear and tear and to Shell's
rights under Articles 7 and 12. Any holdover by Shell after any termination of this
lease shall create no more than a month-to-month tenancy at the rent and on all other
applicable conditions herein provided. If forfeiture of this lease be permitted
by law for Shell's default,, Lessor shall not be entitled to declare any such for-
feiture unless Lessor shall have given Shell notice of such default and Shell shall
have failed to remedy same within twenty (20) days after receipt of such notice.
13. WARRANTY OF TITLE: Lessor covenants that Lessor is well seized of and
has good right to lease the premises, will warrant and defend the title thereto, as
shown on Preliminary Title Report No. 69818 GH, dated October 26, 1962, issued to
Shell Oil Company by Title Insurance and Trust Company, 1200 Lincoln Avenue, da
California, and will indemnify Shell against any damage and expense which Shell may
suffer by reason of any lien, encumbrance, restriction or defect in the title to or
description herein of the premises, except to the extent as sho:•in in said Title Report.
If at any time, Lessor's title or right to receive rent hereunder is disputed, or there
is�a change of ownership of Lessor's estate by act of the parties or operation of lair,
Shell may withhold rent thereafter accruing until Shell is furnished proof satisfactory
to it as to the party entitled thereto.
14. NOTICES: Notices hereunder shall be given only by registered letter or
telegram and shall be deemed given when the letter is deposited in the nail or the
telegram filed with the telegraph company, postage or charges prepaid, and addressed
to the party for whom intended at such party's address first herein specified, or to
such other address as may be substituted therefor by proper notice hereunder.
15. ENTIRETY--EXECUTION--SUCCESSION: This lease merges and supersedes all -
prior negotiations, representations and agreements, and constitutes the entire
contract, between Lessor and Shell concerning the leasing of the premises and the
consideration therefor. Neither this lease nor any amendmment or supplement thereto shal'
be binding on Shell unless and until it is signed in Shell's behalf by a representative
duly authorized by its Board of Directors, and a copy thereof so signed is delivered to
Lessor. This lease shall be binding on and inure to the benefit of the heirs, adminis-
trators, executors, successors and assigns of Lessor, and the successors and assigns of
Shell.
IN WITNESS WHEREOF, this lease is executed as of the date first herein riritten.
CITY OF SAN RAFAEL 1S_ _
�e' so r"
APPP•OVED AS TO FORM: d
m a.�o r, C i ty of San Rafael
San Rafael
City At'to rney, �g i ty of San Rafael Ci ty Ele.rK, `C i ty. of'
SHELL 01 6Oft? N Y
SIJ-2�3-9 (4-69) PrE:.,.,? in IJ:+h. r
AGREEIW- INT SUPPLEMENTING LEASE
THIS IS AN AGREEMENT, dated April ist , 19 63 , between ilii~ CITY r SA;{ RUAFAa
of VE CITY PALL in SAN ?.A,rt"•.EL, CALIF011.41A
(herein called "Lessor", whether one or more), and SHELL OIL COMPANY, a Delaware corpora-
tion with offices at 1C0 CISH STREET in SAKI FRA,1ICISC0.
CA! IF ORM IA (herein called "Shell"), supplementing the Lease between Lessor and Shell dated
P,uJE:3.t 5th 19 3 , of premises situated at the soutfleast corner of Saeond Streat and
U n`ol n Avanue in San Rafal County of Var1 n State of
Gil i`ornIa4 , and fully described in the Lease, which, or a Memorandum of which, is
recorded in Book 1636 of Records , Page 117 , in the Office of �t a Racordar
of that County:
1. The construction of an automobile service station on the premises, as contemplated by
the Lease, was completed on , March z5th , 19 63 .
2. The primary term of the Lease began on the 17th day of K3reh , 19 63 , and
shall end on the I Gth day of March 19 78 (subject to any rights of termination or
extension provided in the Lease).
3. Rent commenced to accrue under the Lease on the 25th day of ILarch 11963.
4. The Leasa, as hereby supplemented, is ratified, confirmed and continued in all respects.
5. This Agreement shall bind and inure to the benefit of the heirs, administrators, executors,
successors and assigns of Lessor, and the successors and assigns of Shell.
EXECUTED as of the date first herein written.
Witnesses to execution by Lessor:
ti-'itnesses to execution by Shell:
�................:....•---•----------...-----r----...... ......---s"----------- -----:---- Y. (Seal )
1•'1AYOR
- -------------w-- ..a (Seal).
Deputy Ci y Clerk
........ SHEL I OMPANY
- `1
i7 �—
�
STATE OF CALIFORNIA,
Marin
--------------•----— On this___-----I--St _---day of-._... APl'-I l _ - .--_-_-__in lite year are thousand mine hundred
VIRGINIA H . CONGDON .......•-__---r...----, c Notary Public in and for lite._.—. ---•-------------County of
before me, --• ----------
-•..._.........................................._......._
filar i n _ _ _ �— _ Y, Slate of Cc!ifornia, duly commissioned and Sworn, personally appeared
John _F..--Mc!_nn.+..s.-.a.1.d_-W..-----------
known to tate to be the-.-_------------Nay.or.... and_.ileputy_.C.i ty_.Cl.er.!e---- ------- --------
of lite corporation described in and that executed the .t-•ithin insh-ttmenit, and aso l.,to en to me to be
lite person __--who exended lite wi.'Wn instrument on behalf of lite corporation therein ncmed, and
A reement Su Iementing
acknozoledged to the that sttrli corl!oratton executed lite same-_..-_.. g..._.. ---....-_—.__-.--PP—._------
IA' IVITA'ESS IVHERF_OF 1 hr. c hereunto set guy hand arid affixed my of.cial sect in the
Karin ' y '
---Counly of._..-,_..-%'..-----_-_--•----------------ti:c'day artd.�zar �n thu te11 'rhftcale
first above :Lriften. •� / / _ ��
- - -----
- -----
�1 7 Mari --- n / _
Notary Public in and for thy.._.. - - .Count} of ------ --- ---------------------------------- - • -- --.— _ —
/ Stale California_
A�l.uo•�.)r,!�.ncnl r'o7;�ratiun)• / February G IG54
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