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HomeMy WebLinkAboutCC Resolution 11169 (Mitsubishi Rental Agreement)RESOLUTION NO. 11169 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL APPROVING A SHORT TERM RENTAL AGREEMENT WITH SAN RAFAEL MITSUBISHI FOR THE PROPERTY LOCATED AT 1000 EAST FRANCISCO BOULEVARD. WHEREAS, the City of San Rafael desires to rent the property located at 1000 East Francisco Blvd. for short term automobile storage; and WHEREAS, San Rafael Mitsubishi desires to use the property for short term auto storage; and WHEREAS, The San Rafael City Charter does not limit nor provide for the disposition of City property in any special manner other than by ordinance as specified in Article VII, Section 7; and WHEREAS, The approval of the rental of 1000 East Francisco Boulevard to San Rafael Mitsubishi is consistent with the policies of Resolution 5734; and WHEREAS, an appraisal of the property was prepared in 1998 to estimate the market value of the rental interest in the property as required by the City of San Rafael property disposition policy and the proposed rental of the property is generally consistent therewith; and WHEREAS, City staff invited sealed bids from all automobile dealerships with City business licenses as required by required by the City of San Rafael property disposition policy; and WHEREAS, San Rafael Mitsubishi submitted the only bid; NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL HEREBY RESOLVES AS FOLLOWS: To rent the property located at 1000 East Francisco Boulevard to San Rafael Mitsubishi in exchange for the payment of $2,038 per month. The ECONOMIC DEVELOPMENT DIRECTOR is hereby authorized to execute, on behalf of the City of San Rafael, a month to month rental agreement between the City of San Rafael and San Rafael Mitsubishi for an 11,662 square foot lot located at 1000 East Francisco Boulevard in San Rafael, CA. The form of the agreement shall be subject to the review and approval of the City Attorney. 0RIG` I, JEANNE M. LEONCI I, Clerk of the City of San Rafael, hereby certify that the foregoing Resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of said City held on the 3rd day of September 2002, by the following vote, to wit: AYES: COUNCILMEMBERS: Heller, Miller, Phillips and Vice -Mayor Cohen NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: Mayor Boro JEAWk M. LEONCINI, City Clerk RENTAL AGREEMENT 1000 East Francisco Boulevard APN 008-102-04 ivy)! SAN NAFAEL �., D'Dr ;r .NT AGENCY THIS RENTAL AGREEMENT ("Rental Agreement") is entered into as of this day ofby and between the City of San Rafael ("City ") as the landlord and �CG�TI�U►�Cfr �1��'',^ , a corporation ("Tenant") as the tenant, with reference to the following facts: fel ,4,p — $ fsv�- ?r'-�rL-z t�'/ - J 6, RECITALS A. The City owns certain real property located in the City of San Rafael, Marin County, California and more particularly described in the attached Exhibit A incorporated herein by reference ("Property"). B. The City wishes to rent the Property to the Tenant and the Tenant wishes to rent the Property from the City. NOW, THEREFORE, the parties agree as follows: ARTICLE 1 TERM OF RENTAL AGREEMENT City, for and in consideration of the covenants and agreements to be kept and performed by the Tenant, does now hereby rent the Property to Tenant, and in consideration thereof, Tenant does take, hire and rent the Property from the City pursuant to the terms of this Rental Agreement. The term of this Rental Agreement shall commence on7.1 C.' Z and continue on a month-to-month basis until terminated according to the terms of this Rental Agreement. Either party may terminate this Rental Agreement by giving the other party at least sixty (60) days prior written notice of termination to Tenant. ARTICLE 2 RENT hA> Mm— On or before the first day of each month during the term of this Rental Agreement, Tenant shall pay to City as rent, without offset or deduction of any kind, the amount of $ 2,038. No invoice or other notice shall be issued by the City or be required to be issued for payment of rent. 2.2 Interest. If any rent is not paid within fifteen (15) days following the date it is due, Tenant shall also pay interest on the unpaid rent from the date due until paid at an annual rate equal to the Bank of America prime or reference rate plus 2%. 2.3 Additional Rent. In addition to the rent specified in Section 2.1, Tenant shall also pay when due as additional rent all other amounts Tenant is required to pay under this Rental Agreement. ARTICLE 3 USE OF PREMISES Tenant may use the Property for auto storage only. Tenant must comply with the terms of the use permit issued by the City of San Rafael. The Tenant will not allow any waste, nuisance, or hazard to occur or exist on the Property. 3,3 A((P.CC by the C',ity of San Rafael The Tenant will provide the City of San Rafael access to the property and remove automobiles on certain portions of the property to allow the City or their consultants to conduct soils testing, etc. The City of San Rafael will give the Tenant seventy-two (72) hours notice and information on the portions of the property that need to be accessible. 3.4 Nnn-immiminatinn. There shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, age, handicap, marital status, sexual orientation, ancestry or national origin in the sale, lease, sublease Agreement, transfer, use, occupancy, tenure or enjoyment of the Property or the improvements thereon, or any part thereof, and the Tenant or any person claiming under or through it, shall not establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the Property or the improvements thereon, or any part thereof. The Tenant shall refrain from restricting the rental, sale or lease of the Property of the improvements thereon, or any portion thereof, on the basis of race, color, creed, religion, sex, age handicap, marital status, sexual orientation, ancestry or national origin of any person. All such deeds, leases or contracts shall contain or be subject to substantially the following nondiscrimination or nonsegregation clauses: (a) In deeds: "The grantee herein covenants by and for itself, its heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, age, handicap, marital status, sexual orientation, ancestry or national origin in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the premises herein conveyed, nor shall the grantee itself, or any person claiming or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in the premises herein conveyed. The foregoing covenants shall run with the land." (b) In leases and subleases: "The lessee herein covenants by and for itself, its heirs, executors, administrators and assigns, and all persons claiming under or through it, and this lease is made and accepted upon and subject to the following conditions: "That there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, age, handicap, marital status, sexual orientation, ancestry or national origin in the leasing, subleasing, transferring, use, occupancy, tenure or enjoyment of the premises herein leased, nor shall the lease itself, or any person 3 claiming under or through it, establish or pen -nit any such practice or practices or discrimination or segregation with reference to the selection, location, number, use or occupancy or tenants, lessees, subtenants, sublessees or vendees in the premises herein leased." (c) In contracts: "There shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, age, handicap, marital status, sexual orientation, ancestry or national origin in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the premises, nor shall the transferee itself, of any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the premises." ARTICLE 4 LAWS, TAXES AND UTILITIES The Tenant shall comply and cause subtenants and occupants to comply with all local, state, and federal laws and regulations including those laws whether existing or new which relate to use of the Property, the use, handling, treatment, or disposal of toxic or hazardous substances or relating to the control of rodents, other vermin, or noxious weeds on the Property. In no event shall the Tenant dispose or allow the disposal of any substance on the Property which has hazardous or toxic qualities. This Section 4.1 shall not prevent Tenant from contesting the application of any local, state or federal law, regulation or order or from refraining from compliance with any such local, state or federal law, regulation or order pending the determination of the Tenant's contest of the application thereof. The Tenant shall comply with each and every requirement of all policies of public liability, fire and other insurance which at any time may be in force with respect to the Property or the improvements thereon. The Tenant shall pay all taxes; assessments, fees or other government charges levied or assessed that become due and payable during the term hereof against the Property and any and all improvements which may be constructed by or for Tenant on the Property. The Tenant shall have the right, in the manner provided by law, to contest any tax or the amount of any tax it is required to pay pursuant to this Section or to seek a reduction in the assessed valuation of the Property. 0 The Tenant will pay and discharge all bills for labor and material furnished during the term hereof for use upon the Property and be solely liable and shall hold the City harmless from liability for any and all claims, demands and causes of action that are brought arising out of or in any way connected with any claims or liens for labor or materials or similar action; provided, however, that in no event shall Tenant be required to indemnify the City or discharge any bill if the labor and materials were furnished at the request of the City. The Tenant shall have the right to contest any bill for labor or materials or the amount thereof of any claims or liens for labor or materials or similar action, and shall have the right to refrain from the payment of any such bill, claim or lien pending the determination of the Tenant's obligation to pay such bill, claim or lien so long as the City does not incur any obligation or liability to pay the claim or lien. If the Tenant, in violation of the provisions of this Rental Agreement, shall fail to pay and to discharge any amount it is required to pay pursuant to Section 4.3 or Section 4.4, the City may (but shall not be obligated to) pay or discharge such amounts, and the amount paid by the City and the amount of all costs, expenses, interest and penalties connected therewith, including attorney's fees, together with interest at the rate set forth in Section 2.4 above, shall be deemed to be and shall, upon demand of the City, be payable by the Tenant as additional rent. ARTICLE 5 OWNERSHIP OF IMPROVEMENTS, STATUS OF IMPROVEMENTS AND SUBTENANTS Any improvements existing on the Property as of the commencement of this Rental Agreement or placed on the Property following the commencement of this Rental Agreement shall be the property of the Tenant. At the expiration or other termination of this Rental Agreement, the Tenant shall, at the request of the City, remove from the Property any improvements thereon; Tenant shall be permitted to remove any movable furniture, equipment or trade fixtures in any event. Any improvements remaining on the Property at the expiration or other termination of the Rental Agreement shall become the property of the City. 5.2 Constniction of Improvernents at Tenant Risk. Tenant acknowledges and understands that this Rental Agreement may be terminated by the City pursuant to Section 1.3 at any time with thirty (30) days notice. In such event, Tenant shall have no right to compensation or payment for any improvements Tenant makes on the Property pursuant to this Rental Agreement. 5 ARTICLE 6 ASSIGNMENT, SUBLETTING AND TRANSFERS The Tenant shall not make or attempt any total or partial sale, transfer, conveyance or assignment of this Rental Agreement. Tenant also shall not make or attempt any total or partial sublease of the Property. WANEPAVIMM, 1.0 NeYMMITIORM Tenant acknowledges and understands that the Property has been acquired by the City for a public use, that Tenant will not be entitled to payments or assistance under the Relocation Law (Government Code Sections 7260 eL seq.) in the event that this Rental Agreement is tenninated and Tenant is required to relocate from the Property, and that such termination may occur earlier than otherwise expected because of the City's development of the Property for the planned public use. ARTICLE 7 ENCUMBRANCE OF LEASEHOLD ESTATE The Tenant shall not have the right to encumber the leasehold estate created by this Rental Agreement or any improvements located on the Property. If any such encumbrance is created in violation of the prohibition in this Section 7. 1, it shall in no event constitute a lien or encumbrance on the fee interest in the Property. ARTICLE 8 REPAIRS AND RESTORATION At all times during the term of this Rental Agreement, the Tenant shall at the Tenant's own cost and expense, keep and maintain the Property and all improvements now or hereafter appurtenant to the Property in good order and repair and in a safe and clean condition. 6 A -. /. • • • 01114011141111 Should, at any time during the tenn of this Rental Agreement, the buildings or improvements now or hereafter on the Property be substantially damaged or destroyed in whole or in part by fire, the elements or any other cause, Tenant may terminate this Rental Agreement by giving written notice thereof within thirty (30) days following the event giving rise to the damage or destruction. ARTICLE 9 INSURANCE AND INDEMNIFICATION 9.1 Tnsnranre Recli,irements. During the term of this Rental Agreement Tenant shall maintain liability insurance in an amount not less than $2,000,000 per occurrence and $3,000,000 total liability limit. The City, its officers, agents, employees and volunteers shall be named as an additional insured on such liability policy. Tenants shall provide to the City evidence of such insurance and endorsement naming the City, its officers, agents, employees and volunteers as additional insured's. The Tenant shall indemnify, defend and hold the City and their respective officer, agents and employees harmless from and against all liabilities, obligations, damages, penalties, claims, costs, charges and expenses, including reasonable attorneys' fees arising out of the Tenant's operations (including, without limitation, operations by any of the Tenant's subtenants or other occupants on the Property) which may be imposed upon or incurred by or asserted against the City or their respective officers, agents or employees by reason of any of the following occurrences, unless caused by the negligence or willful misconduct of the City or their respective officer, agents or employees during the term of this Rental Agreement: (a) Any work or thing done in, on the Property and the improvements thereon or any part thereof, including, without limitation, the construction of improvements on the Property by any party whatsoever other than the City; or (b) Any use, non-use, possession, occupation, condition, operation, maintenance or management of the Property and the improvements thereon or any part thereof, or (c) Any negligence on the part of the Tenant or any of its agents, contractors, servants, employees, subtenants, operation, licensees or invitees; or (d) Any accident, injury or damage to any person or property occurring on the Property and the improvements thereon or any part thereof, or 7 (e) Any failure on the part of the Tenant to perform or comply with any of the terns, provisions, covenants and conditions contained in this Rental Agreement to be performed or complied with on its part. In case any action or proceeding is brought against the City or their respective officers, agents and employees by reason of any such claim, the Tenant, upon written notice from the City, shall, at the Tenant's expense, resist or defend such action or proceeding by counsel selected by the Tenant or the Tenant's insurance carrier and acceptable to the City. ARTICLE 10 DEFAULT 1 T -e.1 (a) Any of the following occurrences or acts shall constitute an "Event of Default" under this Rentg] Agreement: 1. If the Tenant at any time during the term (and regardless of the pendency of any bankruptcy, reorganization, receivership, insolvency or other proceedings in law, in equity or before any administrative tribunal which have or might have the effect of preventing the Tenant from complying with the terms of this Rental Agreement) shall fail to make payment, when such payment is due, of any payment the Tenant is required to pay pursuant to this Rental Agreement and such failure continues for fifteen (15) days following the date it was due. 2. The Tenant fails to observe or perform any of the covenants, agreements or obligations under this Rental Agreement other than those set forth in subsection (a) 1 above and such default is not cured within thirty (30) days after receipt of written notice thereof by the Tenant; or 3. If the Tenant or any one of them shall file a petition in bankruptcy or for reorganization of any arrangement pursuant to any present or future federal bankruptcy act or under any similar federal or state law, or shall be adjudicated a bankrupt or insolvent or shall make an assignment for the benefit of its creditors, or if a petition or answer proposing the adjudication of the Tenant or anyone of them as a bankrupt or its reorganization under any present or future federal bankruptcy act of any similar federal or state law shall be filed in any court and such petition or answer shall not be discharged or denied within one hundred twenty (120) days after the filing thereof; or (b) Upon the occurrence of any such Event of Default and as long as the Event of Default continues, in addition to any and all other rights or remedies of City under this Rental Agreement or by law or in equity, the City may have the sole option to exercise the following rights and remedies: I . The right of the City to declare the tern hereof ended and to tenninate this Rental Agreement, in which event the Tenant shall promptly surrender possession of the Property and the improvements thereon to the City, and pay to the City all payments due the City under this Rental Agreement and the damages specified in subsection (d) below. If the Tenant does not so promptly surrender the Property and the improvements thereon, the City shall have the immediate right to reenter the Property and take possession thereof and remove all persons therefrom. 2. The right of the City, without terminating this Rental Agreement, to enter the Property and the improvements thereon and occupy the whole or any part thereof for and on account of the Tenant and to collect rent and any other rent that may thereafter become payable until this Rental Agreement is terminated pursuant to subsection (b) 3 below. 3. The right of the City, even though it may have reentered the Property and the improvements thereon pursuant to subsection (b) 2 above, to thereafter elect to terminate this Rental Agreement and collect the damages specified in subsection (d) below. (c) h1 the event the City reenters the Property and the improvements thereon pursuant to the provisions of subsection (b) 2 above, the City shall not be deemed to have terminated this Rental Agreement, and the liability of the Tenant thereafter to pay sums payable under this Rental Agreement shall continue unless the City notifies the Tenant in writing that the City has so elected to terminate this Rental Agreement pursuant to subsection (b) 3 above. The Tenant further acknowledges and agrees that the service by the City of any notice pursuant to the unlawful detainer or similar such statute of the State of California and the surrender of possession pursuant to such notice shall not be deemed to be a termination of this Rental Agreement. (d) Upon termination of this Rental Agreement pursuant to subsection (b) above, the City shall be entitled to recover from the Tenant: (i) The worth at the time of the award of the unpaid rent, which had been earned as of the date of termination; (ii) The worth at the time of the award of the amount by which the unpaid rent which would have been earned after the date of termination until the time of the award exceeds the amount of rental loss the Tenant proves could have been reasonably avoided; (iii) The worth at the time of the award of the amount by which the unpaid rent for the balance of the term after the time of the award exceeds the amount of rental loss the Tenant proves could be reasonably avoided; and (iv) Any other amount necessary to compensate the City for all the detriment proximately caused by the Tenant's failure to perform its obligations under this Rental 6 Agreement or which in the ordinary course of things would be likely to result therefrom. The "worth at the time of the award" shall be computed under subparagraphs (i) and (ii) by allowing interest at ten percent (10%) per year and shall be computed under subparagraph (iii) by discounting the amount at the discount rate of the Federal Reserve Bank of San Francisco in effect as of the date of termination plus one percent (1%). No right or remedy herein conferred upon or reserved to the City or the Tenant is intended to be exclusive of any other right or remedy, except as expressly stated herein, and each and every right and remedy shall be cumulative and in addition to any other right or remedy given hereunder or now or hereafter existing at law or in equity or by statute, except such rights or remedies as are expressly limited herein. 10.3 Default by City. In the event the City shall fail to perform or observe any of the covenants or provisions contained in this Rental Agreement on the part of the City to be performed or observed within sixty (60) days after written notice from the Tenant to the City specifying the particulars of such default or breach of performance, or if more than sixty (60) days shall be reasonably required because of the nature of the default, if the City should fail to proceed diligently to cure such default after such notice, then in that event the City shall be responsible to the Tenant for any and all actual damages sustained by the Tenant as a direct result of the City's default, and in addition, the Tenant shall be entitled to terminate this Rental Agreement upon giving the City not less than ninety (90) days prior notice of its intention to terminate this Rental Agreement for such default. ARTICLE 11 CONDEMNATION During the term of this Rental Agreement, should title and possession of all or part of the Property be taken under the power of eminent domain by any public or quasi -public City or entity, the proceeds of any condemnation award shall be payable solely to the City except for any compensation for loss of goodwill or for trade fixtures of the Tenant or other occupants of the Property. 10 ARTICLE 12 MISCELLANEOUS 12.1 Force ,_e Mai .iir Except as otherwise expressly provided in this Rental Agreement, should the performance of any act required by this Rental Agreement to be performed by either the City or the Tenant be prevented or delayed by reason of any act of God, strike, lockout, labor trouble, inability to secure materials, restrictive government laws or regulations, or any other cause (except financial inability) not the fault of the party required to perform the act, the time for performance of the act will be extended for a period equivalent to the period of the delay and performance of the act during the period of delay will be excused; provided that nothing contained in this Section shall excuse the Tenant's prompt payment of any amounts Tenant is required to pay by this Rental Agreement or the performance of any act rendered difficult or impossible solely because of the financial condition of the party required to perform the act. • u�• .. The provisions of this Rental Agreement shall be governed by and construed according to the laws of the State of California. 12.3 Notices. All notices given pursuant to this shall be in writing and addressed as follows: if to the : City of San Rafael 1400 Fifth Avenue San Rafael, California 94901 Attn: if to the Tenant: or such other address as the parties may designate from time to time. Any such notices shall be either personally delivered or sent by certified or registered mail, return receipt requested, postage prepaid, to the parties at such addresses. The date of any such notice shall be the date of receipt if delivered personally or the date seventy-two (72) hours after posting if sent by certified or registered mail. WHEREFORE, the parties have executed this Rental Agreement on or as of the date first written above. City of San Rafael By: Name: Nancy Nancy Mai/ckle Title: Economic Development Director l Title: E7r?`L-ii nrj 12 EXHIBIT A (Legal Description of the Property) 1000 East Francisco Boulevard APN 008 -10? -04 All that certain real property situate in the City of San Rafael County of Marin, State of California, described as follows: BEGINNING for reference at a point on the general southwesterly line of Parcel 1, described in Deed No. 17035(17036) to the State of California, recorded July 6, 1956 in Volume 1040, page 386, of Official Records of the County of Marin, said point being the northwesterly terminus of the course described as "N.59032'42" W., 152.92 feet" in said Parcel 1 (1040 or 386); thence along said general southwesterly line S. 59032'42" E. 144.37 feet to the TRUE POINT OF COMMENCEMENT; thence S. 33050'18" W., 4.57 feet; thence South 560 09' 42" E., 190.95 feet; thence North 471 14' 18" E. 86.82 feet; thence N. 55117'48" W., 14.62 feet; thence from a tangent that bears N. 63039'28" W., along a curve to the left with a radius of 567.00 feet, through an angle of 8010'141,, an arc length of 80.86 feet; thence N. 71049'42" W., 121.84 feet; thence S. 33050'18" W., 30.98 feet to the true point of commencement. EXCEPTING THEREFROM that portion of land described in the Deed from Claire Engelberg to The City of San Rafael, a municipal corporation, recorded June 12, 1985 under Recorder's Serial No. 85-24439, Marin County Records and, more particularly, described as follows: BEING a portion of the parcel described in Director's Deed in Book 1570, Page 240, recorded May 15, 1962, Marin County Records, described as follows: COMMENCING at the most southerly corner of said parcel described in said Deed, said corner being at the intersection of the courses described as S.56009'42"E. 190.95 feet and N.47014'18" E., 86.82 feet; thence N. 47014'1811E., 72.80 feet along last said course, to the true point of beginning; thence on a non -tangent curve to the left, with a radial bearing of S.49052'4711 W., a radius of 35.00 feet, an arc length of 10.80 feet to a point of compound curvature; thence on a curve to the left, with a radial bearing of S.32011'43"W., a radius of 595.00 feet, an arc length of 121.24 feet; thence N.18010'08" E., 0.50 foot, to the Northerly line of said parcel as described in said Deed; thence along said northerly line, S.71°49'42"E., 42.60 feet; thence on a curve to the right, tangent to last said line, with a radius of 567.00 feet, through an angle of 8010'14", an arc length of 80.86 feet; thence S.55017'48" E., 14.62 feet; thence S.47014'18"W., 13.47 feet, to the true point of beginning.