Agreement - Union Pacific Railroad Company - Lease of Parking Lot Property at Lewis and Monterey - Signed 2019-07-01769052* 1111111 1111 11111 11111 11111 11111 1111111
REMS FileNet Cover Sheet
AUDIT NUMBER S183439
FOLDER NUMBER 0149800
CITY GILROY
STATE CA
PARTY NAME GILROY, CITY OF
PRIMARY PURPOSE Lease: Public/Private Parking
EFF. DATE 7/1/2019
MP START 80.2
MP END
PRIMARY CIRC7 C0072
DESCRIPTION Rent Letter (07-01-2019)
BOX NUMBER 0
BATCH 00
April 25, 2019
Folder: 1498-00
U.S. CERTIFIED MAIL
RETURN RECEIPT REOUESTED
GILROY, CITY OF
7351 ROSANNA ST
GILROY, CA 95020
Greetings:
Reference is made to that certain Lease dated January 4, 2011, between UNION PACIFIC RAILROAD
COMPANY (Lessor) and GILROY, CITY OF (Lessee) covering a portion of the Lessor's property at
Gilroy, California. Said Lease is identified in the Lessor's records as Audit No. S183439.
Article III of this Lease provides for a periodic reevaluation of the lease rental. The Railroad Company
has established system wide procedures for assessing lease rentals and, as part of these procedures, we
have set a minimum rental charge of $5,000.00 per annum.
This letter is to advise you that effective July 1, 2019 ('Effective Date'), the rent shall be Five Thousand
Dollars ($5,000.00) annually. Commencing twelve (12) months from the Effective Date, the rent shall
automatically and without notice to the Lessee be adjusted by Three Percent (3%) annually cumulative
and compounded. You will be billed at your new lease rate on the next billing cycle.
Also, attached is a Real Estate Environmental Lessee Ouestionnaire for you to complete and return to
me.
Sincerely,
Peter Kenney
Senior Manager - Real Estate
402)544-8581
Union Pacific Railroad Real Estate 1400 Douglas Street Stop 1690 Omaha, Nebraska 68179-1690 fx. (402) 501-0340
SENDER: COMPLETE THIS SECTION COMPLETE THIS SECTION ON DELIVERY
Complete items 1, 2, and 3.
Print your name and address on the reverse
so that we can return the card to you.
Attach this card to the back of the mailpiece,
or on the front if space permits.
1. Article Addressed to:
GILROY, CITY OF
7351 ROSANNA ST
GILROY, CA 95020
1 L ill 11111111 11 1 111 11111 1111
9590 9402 3297 7196 4516 95
2 n.+ ..m ni, ,.ntior ?rancffr from service label)
7016 0910 0000 8120 7242
A. Signature
X
B. Received by (Printed Name)
Agent
Addressee
C. Date of Delivery
D. Is delivery address different from item 1? Yes
If YES, enter delivery address below: 0 No
3. Service Type
Adult Signature
dull Signature Restricted Delivery
edified Mail®
ertitled Mail Restricted Delivery
Collect on Delivery
Collect on Delivery Restricted Delivery
iiII Restricted Delivery
Priority Mall Express®
0 Registered Mail*"
Registered Mall Restricted
DeliveryRetum Receipt for
MerchandiseSignatureConfirmation"
Signature Confirmation
Restricted Delivery
PS Form 3811, July 2015 PSN 7530-02-000-9053 Domestic Return Receipt
FHP /jh,— VI — 5/10/77)
Approved as to form by General Counsel
June 1, 19671
COMMERCIAL LEASE
Terminates Lease 86706
04ill XPaSP, made this 30th day of June
5 -2252
L 9'13
AUDIT No, _______ —_
M.P. E- 80.23 —R
19 77
by and between SOUTHERN PACIFIC TRANSPORTATION COMPANY,
a corporation, herein called ''Railroad and CITY OF GILROY, a municipal corporation
of the State of California, mailing address: P.O. Box 66, Gilroy,
California 95020 herein called "Lessee".
Wituroort4: That Railroad hereby leases to Lessee the premises of Railroad at or near
Gilroy Station, County of Santa Clara
State of California , shown on attached print, of Railroad's Western
Division Drawing No. G -429, Sheet No. 1, revised October 11, 1976,
for the term of one (1) year from the 1st day of July 19 77,
upon the following terms and conditions
1. Railroad reserves for itself, its successors, assigns and licensees, the right to construct, maintain
and operate existing and new or additional pipe, telegraph, telephone and
power transmission lines upon, over and beneath the leased premises.
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3. Said premises shall be used by Lessee solely and exclusively for public parking of
vehicles.
Lessee agrees to comply with all applicable laws and regulations with respect to the use of the leased
premises.
es
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If the Lessee does not, within ninety (90) days, commence the use of the leased premises for the pur-
oses herein mentioned, or discontinues such use for a period of ninety (90).days, Railroad may terminate
this lease on fifteen (15) days' written notice.
Lessee agrees not to pile or store or permit to be piled or stored upon the leased premises, within 100
feet of the nearest railroad track, any gunpowder, dynamite, gasoline or other explosive substance or ma-
terial.
4. Lessee agrees to keep the leased premises and all buildings and structures thereon free from rubbish
and in a neat and safe condition and satisfactory to Railroad. Lessee shall maintain, at Lessee's sole cost and
expense, in good condition and repair, satisfactory to Railroad, all buildings and structures upon said leased
premises, except those owned by the Railroad. The leased premises and buildings and structures thereon
shall not be used for displaying signs and notices other than those connected with the business of Lessee
contemplated by this lease. Such notices and signs shall be neat and properly maintained. Railroad shall have
the right to enter the leased premises at reasonable times to inspect the same.
5. Lessee agrees to pay, before they become delinquent, all taxes and assessments against the leased
premises, or which might become a lien thereon, by reason of any buildings, structures or other property,
real or personal, on the leased premises (except those owned by Railroad), or by reason of Lessee's activi-
ties. Railroad may at its option pay such taxes or assessments, and such payments will be repaid by Le«ee
on demand.
b. In the event Lessee shall not promptly correct any default by Lessee hereunder after receipt of no-
tice of such default from Railroad, Railroad shall have the right to terminate this lease forthwith and to re-
take possession of the leased premises. Waiver of any default shall not be construed as a waiver of a subse-
quent or continuing default. Termination of this lease shall not affect any liability by reason of any act, de-
fault or occurrence prior to such termination.
7. Upon the expiration or termination of this lease, or any extension or renewal thereof, Lessee, with-
out further notice, shall deliver up to Railroad the possession of the leased premises. Lessee, if not in de-
fault hereunder, shall be entitled, at any time prior to such expiration or termination, to remove from the
leased premises any buildings or structures wholly owned by Lessee. Lessee shall restore said leased premises
to the condition in which they existed at the time Lessee took possession. Upon the failure or refusal of
Lessee to remove from the leased premises all buildings, structures and all personal property owned by
Lessee, prior to the expiration or termination of this lease, said buildings, structures and personal property
shall thereupon, at the option of Railroad, become the sole property of Railroad, or if Railroad so elects it
may remove from the leased premises any buildings, structures and other personal property owned by
Lessee, and Railroad may also restore the leased premises to substantially the condition in which they exist-
ed at the time Lessee took possession, all at the expense of Lessee, which expense Lessee agrees to pay
Railroad upon demand. In the event of such failure or refusal of Lessee to surrender possession of said
leased premises, Railroad shall have the right to re -enter upon said leased premises and remove Lessee, or
any person, firm or corporation claiming by, through or under Lessee, therefrom.
8. Lessee shall not construct, reconstruct or alter structures of any character upon the leased premises
without the prior written consent of Railroad. Lessee shall not commence any repairs (except emergency
repairs) until fifteen (15) days after written notice to Railroad.
Lessee further agrees not to install or extend any electrical wires in any Railroad - owned improvements
on the leased premises without the prior written consent of Railroad.
9. Lessee agrees to arrange and pay for all water, gas, electricity and other utilities used by Lessee on
the leased premises direct to the company providing such service.
10. Lessee will fully pay for all materials joined or affixed to the leased premises, and pay in full all
persons who perform labor upon the leased premises and will not suffer any mechanics' or materialmen's
liens of any kind to be enforced against the leased premises for any work done, or materials furnished, at
the Lessee's instance or request. If any such liens are filed thereon, Lessee agrees to remove the some at
Lessee's own cost and expense and to pay any judgment which may be entered thereon or thereunder.
2.
ihould the Lessee fail, neglect or refuse so to do, Railroad shall have the right to pay any amount required
to release any such lien or liens, or to defend any action brought thereon, and to pay any judgment entered
therein, and the Lessee shall be liable to the Railroad for all costs, damages, and reasonable attorney
fees, and any amounts expended in defending any proceedings, or in the payment of any of said liens or
any judgment obtained therefor. Railroad may post and maintain upon the leased premises notices of non -
responsibility as provided by law.
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to the extent permitted by law
12. Lessee agrees to release and indemnify Rai road from and against all liability, cost and expense for
loss of or damage to property and for injury to or deaths of persons (including, but not limited to the prop-
erty and employees of each party hereto), when arising or resulting from-
a) the use of said premises by lessee, its agents, employees or invitees, or
b) breach of provisions of this lease by Lessee
whether or not caused or contributed to by any act or omission of Railroad, its employees, agents, con-
tractors, subcontractors or their employees or agents, or any other person.
The term "Railroad" as used in this Section 12 shall include the successors, assigns and affiliated com-
panies of Railroad and any other railroad company operating upon Railroad's tracks.
if reqquested
LesseeAhalr provide gailroad satisfactory evidence of insurance covering Lessee's liability under this
lease in amounts not less than $300,000/750,000 Bodily Injury and $100,000 /100,000 Property Damage.
Except where prohibited by law, Lessee's Workmen's Compensation insurance covering operations on the
leased premises shall include a waiver of subrogation against Railroad.
It is agreed that the limits of insurance specified above are the minimum amounts required by Railroad
and shall be subject to revision from time to time.
of
13. In case xkxtxxom AkgkDiowsuit to compel performance of, or to recover for breach of,
any covenant, agreement or condition herein written, ee c l oilx eq
will
attorney fees
in addition to the amount of judgment and costs. osi g par y pay
14. In case Lessee shall (except by Railroad) be lawfully deprived of the possession of the leased prem-
ises or any part thereof, Lessee shall notify Railroad in writing, setting forth in full the circumstances in
relation thereto, whereupon Railroad may, at its option, either install Lessee in possession of the leased
premises, or terminate this lease and refund to Lessee the pro rata amount of the rental for the unexpired
term of the lease after the receipt of such notice, whereupon no claims for damages of whatsoever kind or
character incurred by Lessee by reason of such dispossession shall be chargeable against Railroad.
15. There is reserved to Railroad the title and exclusive right to all of the minerals and mineral ores
of every kind and character now known to exist or hereafter discovered upon, within or underlying said
premises, or that may be produced therefrom, including, without limiting the generality of the foregoing,
all petroleum, oil, natural gas and other hydro- carbon substances and products derived therefrom, together
with the exclusive and perpetual right thereto, without, however, the right to use or penetrate the surface
of, or to enter upon, said premises within five hundred (500) feet of the surface thereof, to extricate or
remove the same.
lb. Any notice to be given by Railroad to Lessee hereunder shall be deemed to be properly served if
delivered to Lessee, or if deposited in the post office, postpaid, addressed to Lessee at the leased premises or
to last known address.
3-
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17. Either party hereto may terminate this lease upon thirty (30) days' written notice to the other
darty. In the event of such termination by Railroad, the proportion of rent paid in advance allocable.to
any period after the termination date shall be refunded to Lessee.
18. In case Lessee holds over the term of this lease, with the consent of Railroad, such holding
over shall be deemed a tenancy only from month to month, and upon the some terms and conditions
as herein stated.
19. Time and specific performance are each of the essence of this lease.
20. Lessee, at Lessee's sole cost and expense, shall erect and
maintain a barricade of a size and form satisfactory to Railroad
along the northerly, track and southerly sides of the leased premises.
The barricade along the southerly (street) side of the leased premises
shall be for a distance of no less than 20' in a westerly direction,
commencing at the southeasterly corner of the leased premises.
21. In the event Railroad enters into an agreement with a utility
company providing service to Lessee at the leased premises for Lessee's
sole use, Lessee shall pay to Railroad a charge of Seventy -five Dollars
75) upon receipt of bill therefor to partially defray administrative
costs.
22. Absence of markers does not constitute a warranty by Railroad
of no subsurface installations.
23. Sections 24 to 26, inclusive, on the attached Insert are hereby
made parts of this lease.
THIS LEASE shall inure to the benefit of and be binding upon the heirs, administrators, executors,
successors and assigns of the parties hereto, but shall not be assigned or subleased by Lessee without
the prior written consent of Railroad.
IN WITNESS WHEREOF, the parties hereto have executed this lease in duplicate the day and year
first above written.
SOUTHERN PACIFIC TRANSPORTATION COMP Y
v
Y- .
WITNESSED BY:
R. E. 1 esi'_:; s.. :;fana,sr - ^ea1 issta 8
ITY OF ILROY
15Ve- Note) % / (lessee)
B
Mayor
C1
NOTE: - If an incorporated company, lease should be executed by an authorized officer thereof
and his title indicated; otherwise signature should be witnessed by an employee of Railroad, if prac-
ti661616 'if hot, by a disinterested party.
KIM
rQM
Gilroy, CA -City of Gilroy -L- 5/10/77)
I N S E R T
24. As rental for the leased premises and in addition to the
taxes specified in Section 5 hereof, Lessee shall reimburse Railroad
for all taxes levied against the land included in this lease during
the life thereof.
25. That certain agreement dated December 16, 1946, between
Railroad's corporate predecessor and Lessee, relating to the
construction, maintenance and use of a driveway upon Railroad's
corporate predecessor's premises at said Gilroy, California, as
illustrated on the print attached thereto, is hereby terminated
Railroad's Lease 86706).
26. Notwithstanding anything to the contrary above or elsewhere
in this lease, if improvements on the leased premises other than
those which are owned by Railroad are not removed and premises
restored prior to termination date, either by Lessee or by Railroad
at Lessee's expense, then this lease, with all terms contained
herein, shall, at Railroad's option, remain in effect until improvements
are removed and premises restored.
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of Gilrov
7351 Rosanna. Street
GILROY, CALIFORNIA
95020 -6141
July 18, 1995
S. J. Davies, Assistant Property Manager
Southern Pacific Real Estate Enterprises
One Market Plaza, Suite 912
San Francisco, CA 94105
Dear Mr., Davies:
Telephone (408) 848 -0450
FAX: (408) 842 -2409
NORMAN S. ALLEN, P.E.
DIRECTOR OF PUBLIC WORKS
HAPP`y 125th BIRTHDAY
I am writing in response to your letter of July 10 and our previous
telephone conversations regarding Lease nos. 183439 and 203893. I am
enclosing aerial photographs of the two lease areas and an overlay to the
same scale which shows property lines,
Our original letter of April 25, 1995 requesting termination of lease
no. 183439 was in error. We do not want to terminate that lease. The lease
area is paved for parking and it is used by the adjacent Gilroy Cannery for
parking during the summer processing season. The unpaved area immediately
north of the lease area is occupied by transients and is continually in an
unkempt condition. It is the desire of the city to not add to this unkempt
area by removing the improvements from Lease no. 183439.
The lease which we do wish to terminate is Lease no. 203893, for which
we have received your "Notice to Remove Improvements and Restore Premises ".
Per our telephone conversation, I am requesting that you review the enclosed
photo and overlay, both of which have been field checked and accurately
depict existing conditions, and consider leaving the existing pavement and
minimal landscaping intact. Blight is a growing issue in the downtown area
of Gilroy, as it is in many older cities, and we are reasonably certain that
the removal of these improvements will leave an area that will be frequented
by transients and become an "eyesore" due to lack of maintenance.
Please contact me when you have had an opportunity to review these
materials.
Sincerely,
f
Norman S. Allen
Director of Public Works
NSA
Encl (4)
July 10, 1995
coop
Gilroy- Gilroy
Mr. Jay Baksa
City Administrator
City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020 -6141
Dear Mr. Baksa:
In response to your letter of April 25, 1995 requesting termination of Lease
Audit No. 183439 SP sent you a "Notice to Remove Improvements and Restore
Premises ".
After speaking with you on June 30, 1995 it was discovered that the City of
Gilroy actually wished to terminate Lease No. 203893, not Lease No. 183439 as
indicated in your letter.
Enclosed you will find a print for Lease Nos. 183439 and 203893 in addition
to a "Notice to Remove Improvements and Restore Premises" for Lease Audit No.
203893. The notice will apply to any paving, curbing ... on the leased premises.
you had also mentioned the possibility of terminating Lease No. 183439. The same
stipulations would apply.
If you have any questions I may be reached at 415/541 -2406.
Very truly yours,
l:T 1 YNCN S. J. Davies
Assistant Property Manager
as Agent for Southern Pacific
Transportation Company
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April 25, 1995
AT RV of 61r
7351 Rosanna Street
GILROY, CALIFORNIA
95020 -6141
J.P. Mervin
Southern Pacific Lines
Southern Pacific Building
One Market Plaza, Suite 912
San Francisco, California 94105
Dear Mr. Mervin:
1.-( LYNCH
APR 28 1995
r
I`" h 1(4 8) 848 -0400t
Fax ( 8) 842 -2409
t I, LYNGH
jUN 10 1995
All I-
HAPPY 125th BIR'rIIDA V
Please accept this letter as authorization to terminate Lease #183434N, dated June 30, 1977,
between the City of Gilroy and Southern Pacific Transportation Company as outlined within the
attached agreement, page 4.
If you have any questions, please do not hesitate to call me at (408) 848 -0400.
SERVING OUR CITIZ ENS FOR 125 YEARS