Old City Hall - Saffron Restaurant Lease - Amendment No. 2
SECOND AMENDMENT TO SINGLE TENANT LEASE
This First Amendment to Lease ("Amendment"), is made and entered into as of March
28, 2011. ("Effective Date") by and between THE CITY OF GILROY, a California municipal
corporation f'Landlord") and SAFFRON RESTAURANT GROUP. LLC, a California limited
liability company ("Tenant").
RECITALS
A. Pursuant to that certain S' e Tenant Lease, dated for reference purposes only
May 6. 2003, between Landlord and Old Han, LLC, a California limited liability company,
("Original Tenant"), as amended by First Amendment to Lease dated as of September 30, 2008
between Landlord and tenant (collectively, the "Lease"), Landlord leased to Original Tenant
certain premises (''Premises'') commonly known as Old City Hall located at 7400 Monterey
Street, Gilroy, California (Assessor's Parcel No. 841-06-061 and 841-08-044) and more
particularly described in Exhibit "An to the Lease.
B. Original Tenant assigned all of its rights under the Lease to CHIPS N SALSA
INC., a. California corporation. ("First Assignee") pursuant to that certain Assignment and
Assumption of Lease dated April 28, 2005. Landlord consented to said assignment pursuant to
that certain Consent to Assignment and Assumption of Lease dated as of April 28, 2005 and
executed by Landlord, Original Tenant and First Assignee.
C. First Assignee assigned aU of its rights under the Lease to Tenant pursuant to that
certain Assignment and Assumption of Lease dated October 1,2008. Landlord consented to said
assignment pursuant to that certain Consent to Assignment and Assumption of Lease dated as of
October 1.2008 and executed by Landlord, First Assignee and Tenant
D. Tenant has failed to make the monthly rent payments beginning in November
2010 when the monthly payments pursuant to the Lease were increased from $1,245.00 to
$3,245.00, resulting in an outstanding balance as of February 7, 2011 of$11,735.oo.
E. Due to the difficult economy in the last two years, and due to the adverse effect
on economic development in the Downtown at this time if this business fails, the City Council
believes it is in the public interest to find a temporary settlement of this failure by Tenant to
fulfill the increased rent obligation that began in November 2010. Landlord and Tenant
therefore agreed that if Tenant paid $3,735.00 on or before February 22, 2011, then Tenant's
monthly lease payments would be temporarily reduced.
F. Landlord acknowledges receipt of $3,735.00 on February 22, 2011, from Tenant
fulfilling the condition precedent to the temporary reduction in monthly rent payments. Landlord
and Tenant desire to amend the terms of the Lease as set forth in this Second Amendment and
upon the terms and conditions set forth herein to reflect this change.
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NOW, THEREFORE, for valuable consideration, the parties agree as follows:
1. Effective Date of Amendment. This Amendment shall become effective upon
execution ofthis Amendment by Landlord and Tenant, said date of which is set forth above.
2. Rent. Paragraph 3 of the Lease entitled "RENT" shall remain in full force and
effect except that the monthly amount charged for the months of November 2010 through and
including October 2011 shall be $1,245.00 and the monthly amount charged for the months of
November 2011 through and including August 2012 shall be $2,045.00. All other terms and
provisions of Paragraph 3 remain unmodified and in fun force and effect. Beginning upon the
due date of the monthly rent in September 2012 and continuing for the term of the Lease, the
schedule of monthly rent payments set forth in Paragraph 3 of the Lease shall be in fun force and
effect.
3. Effect of Amendment. Except to the extent modified herein., the terms and
provisions of the Lease shall remain unmodified and continue in full force and effect.
Dated: -- 11-. - -~--
By:
Title: City Administrator
Dated:
'}/- 7- //
TENANT:
SAFFRON RESTAURANT GROUP, LLC
a California limited liability company
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By:
APPROVED AS TO FORM:
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Linda Callon, City Attorney
City of Gilroy
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