HomeMy WebLinkAboutBericon Partners, LLC - Lease Agreement - 6-30-2022UUI;UJIIy. I I CI IVU1UFIC IU. UJrUUUU 1-UDr:Y'4 I DU-DJUr-UUDLUDUUI.UC I
LEASE AGREEMENT
5051-5059 E. McKinley
THIS LEASE AGREEMENT ("Lessee") is made and entered into this 30 day
of June, 2022, by and between BERICON PARTNERS, LLC, a California limited
liability company, 4955 E. Yale Ave. , Fresno, California 93727 (hereinafter
"LESSOR"), and the CITY OF FRESNO, a municipal corporation, 2600 Fresno
Street, Fresno, California 93721 (hereinafter "LESEEE").
1. LEASED PREMISES. LESSOR hereby leases to LESSEE approximately
7,246 square feet office space more particularly illustrated on Exhibit A, attached hereto
and incorporated by this reference, at the location commonly known as 5051-5059 E.
McKinley Avenue, Fresno, California 93727, together with the common area parking
that shall be accessible to LESSEE at all times (hereinafter, "Premises").
2. TERM. The term of this LEASE shall begin on July 1, 2022 and terminate
on June 30, 2025. Except as otherwise set forth herein, this LEASE, after the first full
year of occupancy, may be terminated by LESSEE without cause at any time by
providing LESSOR with one hundred eighty (180) days prior written notice.
3. RENT. LESSEE agrees to pay rent to LESSOR for the Premises
beginning June 30, 2022, a monthly rental payment of Five Thousand Seven Hundred
Ninety -Six dollars and Eighty cents (5796.80) flat rate per month ending June 30, 2025.
All monthly rent payments shall be payable in advance at the LESSOR'S address set
forth in this LEASE.
4. UTILITIES. Electricity, natural gas, water, garbage and sewer services
for the Premises are in addition to the rent. LESSOR shall pay the cost of for the
electricity, natural gas, water garbage and sewer services, and LESSOR shall submit to
LESSEE a monthly statement for its proportionate share of such utility costs based
upon the proportionate square footage of the Premises to the total rentable square
footage of the LESSOR's propertyof which the Premises is a part. LESSEE shall pay
to LESSOR the proportionate share of the utility costs. LESSEE shall pay all costs
associated with its use of telephone service.
5. USE. LESSEE shall use the Premises as office space and LESSEE
agrees to comply with all applicable laws, ordinances and regulations in connections
with such use.
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LESSOR covenants that the Premises are suitable for the intended use.
LESSOR further covenants that the Premises are in compliance with all applicable laws,
ordinances and regulations, including but not limited to safety regulations, health and
building codes, and that the Premises shall remain in such compliance throughout the
term of the LEASE.
6. MAINTENANCE. Exceptfor damage caused by the negligent orwillful
acts of LESSEE, its agents or employees, LESSOR shall be responsible for the
structural condition of the Premises and for all exterior and interior maintenance,
including but not limited to the air conditioning, heating, roof, paint6ing, landscaping and
parking lot. LESSOR shall make any repairs promptly, with first class materials, in a
good and workmanlike manner, and in compliance with all applicable laws of all
governmental authorities and in a style, character, and quality conforming to the existing
construction. LESSOR covenants that the Premises shall be maintained in substantially
the same condition as that existing at the commencement of this LEASE.
LESSEE shall during the term of this LEASE maintain the Premises in a good,
clean and safe condition. LESSEE shall be responsible for janitorial services, including
paper supplies, at the premises.
7. RADIO ANTENNA. LESSEE shall have the right to install and operate
radio transmission devices on the roof of the Premises. Upon termination of this
LEASE, LESSEE will remove such device and have the roof repaired at such sites as
necessary.
8. BREACH OF OBLIGATION TO MAINTAIN. In the event LESSOR
breaches its obligation to maintain the Premises as herein provided. LESSEE shall give
written notice to LESSOR within fifteen (15) days of the discovery of such breach.
LESSOR shall then have fifteen (15) days from the date of notice to cure its breach. If
the period for cure expires and if, in LESSEE'S sole determination, LESSOR has failed
to cure, then LESSEE may, at its election:
(A) Terminate this LEASE immediately upon written notice to LESSOR.
In such case, LESSEE shall have the right to demand LESSOR
refund any monies which, in the judgement of LESSEE, were paid
to LESSOR pursuant to the LEASE but which were not earned by
LESSOR by consequence of its breach. Upon receipt of such
demand, Lessor shall promptly refund all such monies.
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(8) Cure LESSOR'S breach and deduct the cost of such cure, together
with reasonable administrative costs, from LESSEE'S future rent
obligation. LESSEE'S decision to cure LESSOR'S breach shall not
constitute a waiver of any rights or remedies that LESSEE may
have arising from this LEASE or by operation of law.
9. DESTRUCTION OR DAMAGE FROM CASUALTY. If the Premise are
damaged or destroyed as a result of fire, earthquake, act of God, or any other
identifiable event of a sudden, unexpected, or unusual nature (hereinafter referred to as
"Casualty"), then LESSOR shall either promptly and diligently repair the damage at its
own cost, or terminate the LEASE as hereinafter provided.
(A) LESSOR'S Election to Repair: If a LESSOR elects to repairthe
Casualty damage to the Premises, then it shall within fifteen (15)
days after the date of Casualty provided written notice (hereinafter
"Notice of Repair") to LESSEE indicating the anticipated time
required to repair. LESSOR shall bear the cost of all repairs to the
Premises, including the cost to repair any alterations or fixtures
installed or attached thereto by LESSEE. Such repairs shall
restore the Premises to substantially the same condition as that
existing at the commencement of this LEASE; such repairs shall
also be made in compliance with all applicable state and local
building cost. LESSOR shall not be liable to LESSEE for
compensation for any loss of business, or any inconvenience or
annoyance arising from repair of the Premises as a result of
Casualty except for rent reduction as hereinafter provided.
LESSEE shall be responsible at its sole cost and expense for the
replacement of its personal property.
(8) LESSOR'S election to Terminate Due to Casualty: LESSOR may
only elect to terminate the LEASE due to casualty if: the Premises
have been destroyed or substantially destroyed by said casualty;
and the estimated time to repair the Premises exceeds sixty (60)
days from the date of Casualty. LESSOR shall provide LESSEE
with written notice of its election to terminate within fifteen (15) days
after the date of Casualty.
(C) Rent Reduction Due to Casualty: In the event of Casualty,
LESSEE'S obligation to pay rent shall be reduced beginning on
date of the Casualty.
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Such reduction shall be proportional to damage caused to the
Premises bythe Casualtyas determined by LESSEE. If LESSOR
elects to repairthe Premises pursuant to the term of this LEASE
then the rent reduction shall continue until the date of substantial
completion of repair.
(D) LESSEE'S Election to Terminate Due to Casualty. If LESSEE does
not receive a Note of Repairfrom LESSOR within fifteen (15) days
after a Casualty, or if the anticipated period of repair contained in
the Notice of Repair exceeds sixty (60) days, then LESSEE may
elect to immediately terminate this LEASE upon written notification
to LESSOR. In such case, LESSEE shall have the right to demand
that LESSOR refund any monies which, in the judgement of
LESSEE, were paid to LESSOR pursuant to the LEASE but which
were not earned by LESSOR by consequence of the Casualty.
Upon receipt of such demand, LESSOR shall promptly refund all
such monies.
10. NOTICE OF TERMINATION. If pursuant to the terms provided herein,
either LESSOR or LESSEE has an election to terminate the LEASE and so elects, then
notice of such termination shall be made in writing to the non -terminating party. In the
case of LESSEE, the City Manager or or their designee, shall have the power to provide
such notice.
11. HOLD HARMLESS. Each party agrees to indemnify, save, hold
harmless, and at other party's request, defend the other party, its officers, agents and
employees from any and all costs and expenses, damages, liabilities, claims, and loses
occurring or resulting to the other party in connection with performance, or failure to
perform, by the indemnifying party, its damages liabilities, claims, and losses occurring
or resulting to any persons, firm, or corporation who may be injured or damaged by the
performance, or failure to perform of the indemnifying party, its officers, agents or
employee under the LEASE. The LEASE is made upon the expressed condition that
the LESSEE is to be free of all liability, damages or injury arising from structural failures
of the Premises, including, but not limited to external walls, glass, doors, roof and floor.
The parties acknowledge that as between LESSOR and LESSEE, each is responsible
for the negligence of its own employees and invitees.
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LESSOR shall not be responsible for any injury or damaged to any person or
property in or about the Premises caused by any act, neglect, fault of, or omission of
any duty by LESSEE, its officers, agents, employees or invitees.
12. INSURANCE. LESSOR shall, at its sole cost and expense, maintain
in full force and effect during the term of this LEASE the following policies of insurance:
(A) Commercial General liability insurance with limits of not less than
One Million Dollars ($1,000,000) per occurrence and annual aggregate
limit of not less than Two Million Dollars ($2,000,000). This policy shall be
issued on an occurrence basis; and
(8) Fire Insurance and extended Coverage.
LESSOR shall provide to LESSEE a Certificate of Insurance describing the
coverage shown above within thirty (30) days from the date LESSOR executes this
LEASE and naming the certificate holders as the City of Fresno, and mailing or
otherwise delivering copies of the Certificate of Insurance to the City of Fresno, c/o Real
Estate, 2600 Fresno Street, Room 4019, Fresno, California 93721.
LESSEE shall maintain during the term of this lease the following policies of
insurance, which coverage's may be provided in whole or in part through one or more
program of self-insurance:
(A) Commercial General liability insurance with limits of not less than
One Million Dollars ($1,000,000) per occurrence and an annual aggregate
of not less than Two Million Dollars ($2,000,000). This policy shall be
issued on an occurrence basis.
(8) All' -Risk property insurance covering the personal property owned
by LESSEE.
13. NON -FUNDING TERMINATION. This LEASE is contingent on the
appropriation of funds bythe LESSEE'S governing body. Should funds not be
appropriated sufficient for LESSEE'S continued performance under this LEASE, this
LEASE may be terminated by the City Manager or their designee, at any time, after the
first full year of occupancy, by giving at least ninety (90) days prior written notice to
LESSOR.
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14. SURRENDER OF POSSESION. Upon the expiration of termination of
this LEASE, LESSEE will surrenderthe Premises to LESSOR in such condition as
existing at the commencement of this LEASE less reasonable wear and tear, less the
effects of any Casualty as herein defined, and less the effects of any breach of
LESSOR'S covenant to maintain. LESSEE will not be responsible for any damage
which LESSEE was not obligated hereunder to repair.
15. FIXTURES. LESSOR agrees that any equipment, fixtures or apparatus
installed in or about the Premises by LESSEE shall continue to be property of LESSEE
and may be removed by LESSEE at anytime. LESSOR may by written notice within
thirty (30) days of the termination of the LEASE require LESSEE to remove any such
equipment, fixtures or apparatus in or about the Premises by LESSEE. LESSEE shall
repair any damage caused by the removal of fixtures. Any fixtures not required to be
removed when LESSEE surrenders possession shall become the property of LESSOR.
16. RIGHT OF ENTRY. LESSOR, or its representative(s), upon giving 24
hours written notice, shall have the right to enter the Premises at any time during
business hours, or at such other time as LESSEE deems appropriate, to make any
altercations, repairs or improvements to the Premise. The normal business of LESSEE
or its invitees shall not be unnecessarily inconvenienced.
17. ADMENDMENT. This LEASE may be amended in writing by the mutual
consent of the parties without in any way affecting the remainder.
18. NON -ASSIGNMENT. LESSEE shall not assign, transfer, or sub-
lease this LEASE, or the rights or duties under this LEASE, without the prior written
consent of LESSOR, which consent will not be unreasonably withheld.
19. GOVERNING LAW. Venue for any action arising out of or relating to this
LEASE shall be in Fresno County, California. This LEASE shall be governed bythe
laws of the State of California.
20. ATTORNEY'S FEES. In the event of a claim by either party for breach of,
or failure to perform, or any inaccuracy in, any of the representations, warranties,
covenants, or agreements contained in this Lease, then in any action or proceeding the
prevailing party shall be entitled to be reimbursed for all costs, fees, and expenses
incurred in connection with prosecuting or defending such claim, including reasonable
attorneys' fees.
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21. NOTICES. All notices, demands, requests, exercise, and other
communications under this LEASE by either party shall be in writing and:
(A) Sent by United States Certified Mail, return receipt requested, in
which case notice shall be deemed delivered three (3) business days
after deposit, postage prepaid in the United States mail, or
(8) Sent by a nationally recognized overnight courier, in which case
notice shall be deemed delivered one (1) business day after deposit with
that courier, as follows:
LESSEE:
City of Fresno,
Attn: Business Manager
2326 Fresno Street
Fresno, CA 93721
LESSOR:
BERICON PARTNERS, LLC
ATTN: Ronald Stover
4955 E. Yale Ave.
Fresno, CA 93727
Or to such person or at such other place as either Party may from time to time
designate by written notice to the other Party.
22. EXHIBITS. Each exhibit and attachment referenced in this LEASE is
incorporated into and made a part of this LEASE.
23. BINDING ON SUCCESSORS. All rights and obligations herein given to,
or imposed upon, the respective parties hereto shall extend to and bind the respective
heirs, executors, administrators, successors and assignees of said parties; and if there
shall be more than one LESSEE, they shall all be bound jointly and severally by the
terms, covenants and agreements herein.
24. QUIET POSSESSION. Upon LESSEE keeping, observing and
performing all of the covenants, conditions, promises and provisions on LESSEE'S part
to be kept, observed or performed hereunder, LESSEE shall have quiet possession of
the Premise during the term hereof and any extensions thereto subject to all of the
provisions of this LEASE.
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25. HOLDING OVER. Should LESSEE retain possession after any
termination of this LEASE, LESSEE shall become a tenant on a month to month basis
on the same terms and conditions s herein provided and the leasehold may be
terminated by either party giving at least thirty (30) days prior written notice.
26. ENTIRE LEASE. This LEASE constitutes the entire LEASE between
the LESSOR and LESSEE with respect to the subject matter hereof and supersedes all
prior leases, negotiations, proposals, commitments, writings, advertisements,
publications and understandings of any nature whatsoever unless expressly referenced
in this LEASE.
27. CONDITION OF PREMISES: The EXISTING space, as referenced in
EXHIBIT "A" , currently occupied of 5,498 square feet shall be "AS IS", except that the
existing wall highlighted and "X"ed out will be removed by LESSOR.
28. PARKING: LESSOR shall provide non-exclusive parking for all tenants
of this building as part of the LEASE as referenced in EXHIBIT "B". LESSOR currently
leases, from the adjacent property owner, the eleven parking spaces on the East end of
the building. LESSOR will use its best efforts to maintain this lease provided the rental
rate does not increase by more than ten (10%) in anyone given year.
THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK.
SIGNATURES APPEAR ON NEXT PAGE.
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IN WITNESS WHEREOF, the parties have caused this LEASE to be executed by their
authorized representatives as of the date first above written.
LESSOR:
BERICON PARTNERS, LLC.
A California limited liability
Kllxw/z� -�-4 ,{
Ronald Stover, Member
"-, /By:
Robert A. Be , M mber
LESSEE:
CITY OF FRESNO
A municipal corporation
BYEDocuSigned by:
, g'a-�-1- 1/19/2023
Brian Barr, Director of General
Services
ATTEST:
City Clerk
DocuSigned by:
B Y _I 'ram 10.
1/19/2023
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APPROVED AS TO FORM:
City Attorney