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HomeMy WebLinkAboutSanta Clara County Library - 1969 Library Lease I ".. . . ~ # ~ :.",);f.. ~-7~$? , . .. LEASE AG~EE}mNT FOR GtLfilY JlANCH LII~~Y The following is a lease agreement between the COUNTY OF SANTA CLARA, State of California, hereinafter referred to as "Lessee," and the CITY OF GILROY, a municipal corporation, hereinafter referred to as "Lessor." WHEREAS, Lessor proposes to lease to Lessee real property in the City of Gilroy, California at a site mutually to be agreed upon by the parties hereto; and HHEHEAS, Lessor proposes to construct on the aforesaid renl property (1) a 15,000 square foot building and (2) a vehicle parking area, both to be utili~ed as and for a branch library of the County of Santa Clara, all in accordance with the plans anu specifications to be approved by the parties hereto; and \~lEREAS, Lessor has offered to lease said building and improvements to Lessee and Lessee desires to rent the same from Lessor; NOH, THEREFIJ{E, in consideration of. and subj ect to, the terms and conditi.ns hereinafter set forth, LESSOR AND LESSEE AGREE AS FOLLOHS: 1. pescripti.n.f Pr.operty. Lessor .hereby agrees to lease to Lessee, and Lessee hereby agrees to rent from Lessor the aforesaid real property sufficient to supply a 15,000 square foot building, at least 30.000 sqUflre feet of: parking space, and such additional land as is necessary to the use of such building and parking space; and the hereinafter. described building and improvements which arc to be erected and constructed by Lessor, at Lessor's sole cost and e~.pense" 2. Use.f !remis~s. Said l)remlses shall be used by Lessee for the mainte~ance and operation of a branch library for the County of Santa Clara. ~ The term "premisesll 1.s de~ined to mean the said portion of real ;}j::OpC'l:ty [,hove c1cSCLiJJ(I(l and the bl.l1.1c~ins rind all improvements .. 1 .. V II~ 11, I (4) erected thereon by ~ess6r. 3. Term of Lease A. The term of this lease shall be for a period of twenty~five (25) years beginnig when the premises are ready for occupancy and ending on the last day of the twenty,'fifth (25th) year following the date of occupancy. Lessor hereby grants to Lessee the sole a~d exclusive option to renew said lease for an auditionsl twenty~~lve (25) year period, which option shall be : I exercised by Lesse, by the giving of one.year's advance written notice of Lessee's intention to renew said lease. In th~ event Lessee does not exercise its option within the term prescribed hereunder, the I lease shall terminate ipso facto upon the expiration of the original twenty-five (25) year term hereof, and no notice shall be required to effectuate said termination. B. The effective date of this lease for the commenoement of the term provided for herein shall be the first business day of the month following receipt by Lessee of written notice that Lessor has completed the construction of the building and improvements and that the same are in condition and ready for occupancy, all in accordance with the said plans and specifications. Provided that, as a condition precedent to the giving of said notice of completion by Lessor, the County Executive of the County of Santa Clara shall be permitted to inspect the premises and shall be satisfied that the plans and specifications for construction of said premises have been fully complied with. 4. Rental I" .I A. Lessor shall acquire land sufficient for the con" struction of a building and improvements as pr.ovided herein and shall construct said building and improveffientE with moneys received .. from the sale of Lessor' 6 ItHenty-five year general obligati.on bonds, and rental hereunder is predicated on this understanding. It is further understood that Lessor. shall expend from the sale of said bondr. a sum not to exceed $600,000 for the acquisition of said lvno .. 2 .. construction of said building and parking facilities, landscaping of tho. premi ses, and all other -related improve~nent~. li. Lessor ~lall pres1nt to Lessee for Lea~ee's approval the bond 1l\aturity acheclulc for' the retirement of Lessor' 8 twenty.. rive year general obligation bonds used to acquire said land, lmprove the premi s(.~ s, and cons truct said building. Thereafter, on i,r before Hay 1st of c:[lch year of the tcrm hereof, Lessor 'vil] i compute tho totEll all10unt of said general obligation bond principv.l I f.1ncl lnten.>st which ~vil1 be needed in the next fiscal year follo~~ing I I MDY 1st to redeem the maturing bonds and pay the bond interest I directly allocated ~o the acquisitibn of said land, construction of said building, landscaping and other related improvements. Lessee arJces to reiml1'l.n:se Lessor for saic1 bond payments as ane1 for. rent. C. For purposes of this agreement, as used in Paragraph I~ A, the term "the acquisition of said land, construction of said building and parking fflcilities, landscaping of the premises, and all OlI1C'l: 1:e1atecl improvements" sholl !nenn tho EHllOllnt paid by Les sor l.mc1cr 'ilt i tten contr act for acquisitIon of land, f;lrchi tecttlr a 1 fees, site preparation \vork, construction of a building and parking f~cilities. and landscaping under this agree~ent. Lessor shall provide Lessee 'vith duplicate original copies of all contracts, chan~e orders, and progress billings executed by Lessor for any work described in Paragraph 5 hereof. Lessor shall permit Lessee to inspect and make copies of all books of account, ledgers, warrants, invoices, and all other documents and letters relating to the payP1ents mndc by Lessor fo~ any of said work. D. The rental provided for herein shall be paid by Lessee to Lcsoor annually on the first business c1ElY of June of each year of .. the term hereof, or as the parties hereto may agree in writ:l.ng. E. In the event Lessee exercises the option provided for in Paragraph 3 A above to lease the premises for an f;ldditional period of twenty~five years, there shall be no rental for such ac~ca t ional per ioci. .. 3 .. 5. pon~trllct:i.on..of Building and I~~rovome{lts. A. The huilding to be constructed by Lessor shall comprise approximately 15.000 square feet and shall be according to the schematic design studies, design development doouments and con" strllctlon documents, as described in Paragraph 5 B. whtch hAve boen approved by Lessor and Lessee. Said premises shall include ill improvements reasonably necessary to the use of laid building. includin~, but not limited to, landscaping, parking sp~ce. and walkwnys as described heteln, B, Within the time limits prescribed in Paragraphs 5 C and 5 D, Lessor shall provide the following to Lessee: i. Schematic Design Studies This shall consist of schematic design studies and site utilization plans together with a general description of the structure for approval by fhe Lessee. This general description shall inclucle the 111cchanical and electr.ical features proposed find a general indication of the size of all areas in the atructure and the estimated str.ucture construction cost. ii. Design Development Documenta. Lessor shall prepare from the schematic documents Dpproved by Lessee the design development doct~ents consisting of site and floor plans, elevations. cros8~sections and other approved dra\11ngs, and flhall outline specifications to fix and !lluatrate the size, character and quality of the entire atructure in its essentials as to the kinds of materiala, type of structure, mechanical ancl electd.cal systems and such other worl" as may be required, Lessor shall ~ubmit in writing to Lessee the e$timateo $tructure construction cost. .. iii. Construction Documents, Upon receipt of instructions from Lessee to proceed \~ith the preparation of construction documenta, ~easor shall prepar.e from the approved design developinent documenta, working arm'lings ane1 sped.flcations setting forth in detail and prescribing the "'lork to be c1on(~>> and the materials, 'Horkmanship>> fint shes, and ~ 4 .. equ~pment required for the arch~tectural, structural, mechanical electr~cal. service-connected equ~pment. and s~te work. tessor shall not~fy Lessee in writing whether or not there is any indicated adjustment in previous estimates of the structure construction cost. C. Not later than one month after the execution of this agreement, the County Librarian shall provide Lessor!with a "Program of the Funct~onal Deta~ls of a Library for the Architect". There- after, ~n the event of an application for a grant for construction funds from the federal or state government, Lessor shall, on the request of Lessee, supply as part of the cost of construction any schematic des~gn studies which may be required incident to such application. tf, for any reason, the proposed building'and improve- ments are not constructed. Lessee will reimburse tessor for the cost of any studies provided: pursuant to this paragraph. D. Not later than two months after the site acquisition, Lessor shall furnish to Lessee for approval a comple~e set of design development documents. Upon receipt of the approval of the design development documents, Lessor shall furnish to Lessee a complete set of construction documents within five months for approval by Lessee. Not later than two months after approval by Lessee of the construction documents, the Lessor shall approve such documents , I and sign a contract for the construction of the library building. Not later than twelve months after the award of the contract. the Lessor shall complete the construction of the building and improve- ments of the premises and deliver same to Lessee for occupancy. Upon failure ,to complete the construction of said building within the time specified herein. Lessee shall have the sole option to cancel and terminate this lease agreement upon written notice to Lessor without any cost or expense to Lessee whatsoever, Lessee shall grant a reasonable extension of time for completion of the structure when delay.~s caused by circumstances beyond the control of Lessor. E. At any time pr~or to the award by Lessor of a contract -5- for the constrl1ctlon of fJnlcl building. Lessee haa the option to tcrli11nntc thia agreement by notice in writ:J.ng to Lessor and shall pay Le~sor, as and for the privilege of terminating this agreement as of the uate of said written Inotice, the fees ~mlch Lessor is I oblicatccl t1l1c1er "7rltten contract to ptly for architectural services pcrforn~d in providing for Lessee schematic design studies, design slevelopmcnt documents and construction documents, F. A rec'Ormendtltion to the City Council of Gilroy as to tho selection of ani architect by the City councl~ shall be made by u corllmittee com;:>pscc1 of th,~ follO\l7ing mernbeT.A or thei.r c.1es:l.gnated rC:,JJ:,c'cntatives: aha member of th~. C:I.ty CQ\incil of GU.l.'oy; one I r.1clF;)0'.L of the Oi11.'oy Libj;[l,ry and Culture C(Jmmisston; t~he Gilroy I City Admini~trator; and the County Librarian, 6, Maintenance and Utilities '" _ , T _----.. ~ ............ A. Lessee shall make all repairs during the term as are necessnry to keep and maintain said premi~es in good and tenantable condition, except repairs to the sidewalks adjacent to said premises, and such other repairs as may be necessary by reason of dan1age by fire, the elements, casualty or other cause or happening not clue to the negligence of Lessee, ,~hich repairs te~sor hereby agrees to Tl1fl.ke . i. If the site selected by the parties is located as a part of. the civic center of Lessor, or if it directly adjoins the civic center, although consioered not a part of the civic center. then Lessor shall mainta5.n laL1dscaping and parking for the premises, and shall install changes ano additions to the lan2scaplng (but not to the parking facillti~a) as required subsequent to the original installation . thereof, all at Lessor's sole cost and expense; if , the site selected by the parties ia located elee~V'hero, then Lessee shall maintain landsoaping and parking for said prcmi~es at ~easec's sole cost and expense. .. 6 .. B. Lessee shall not make any alterations, ch~nges, or additions to said premises without obtaining prior written consent of Lessor, which consent, however, shall not be unreasonably with~ held. Any such alterations. changes, or additions made by Lessee shall be at the cost and expense of Lessee, and, upon termination hereof, said alterations, changes or additions shall inure to the benefit of Lessor, except. however, trade tixtures, lighting fixtures, partitions, appliances, equipment, furniture. and other improvements placed on said premises by Lessee; and upon termination of t~is lease, Lessee shall have a reasonable length of time in which to remove said trade fixtures, lighting fixtures, partitions, appliances, equipment, furniture, and other improvements installed by it on said premises. C, Lessee shall pay for the furnishing of all water and all other utilities necessary or required for use in or upon the premises during the term of this lease or any extension thereof. Lessee shall pay tor all janitorial services. D. Lessee, at its own cost and expense, shall take out and maintain during the term of this lease casualty and fire insurance to the extent of the insurable value of the premises including provision for payments to cover bonding costs abated as a result of damage by fire, the elements, casualty or other c~use or happening not due to the negligence of Lessee. Lessee shall further take out and maintain during the term of this lease public liability and property damage insurance, naming Lessor thereon as additional insured under the terms of said policy, 7. Damage to fremises If said premises are totally destroyed by fire, casualty, or other cause or happening, or if said premises are only partially . destroyeq by fire, casualty, or other cause or happening, said premises shall be promptly restored by Lessor to their previous -7- .' . . ' . . ~ " - ~ condition and made safe. and a just proportion of the rent herein provided for, according to the extent to which said premises have been rendered untenantable or declared unsafe, shall abate until said premises have been restored and put in proper condition for use and occupancy; provided, however, that (a) if said building is sub- stantially destroyed to the extent of fifty percent (50%) or more of its then current value, then upon receipt of insurance proceeds by the ~essor, ~essor shall proceed with reconstruction and shall with all due diligence attempt to complete said reconstructi~n within twelve (12) months after the receipt of said insurance proceeds, or (b) if said building is partially destroyed to the extent of less than fifty percent (50%) of its then current value. then upon receipt of insurance proceeds by Lessor. Lessor shall proceed with recon~ struction and shall with all due diligence attempt to complete said reconstruction within six (6) months after the receipt of said insurance proceeds. then in the event that Lessor fails to comply with the provisions of either (a) or (b) above. Lessee may at its sole option, cancel and terminate this lease in its entirety, and should Lessee exercise its option to cancel and terminate, any unearned rent paid in advance by ~essee shall be refunded to it. The determination of whether the casualty has caused substantial or partial destruction shall be made mutually by Lessor and Lessee within ten (10) days after the date of said casualty. In the event I of a disagreement between Lessor and Lessee as to the determination of the amount of destruction. the parties shall submit the matter to arbitration and the rules and procedures of the American Arbitration Association shall apply. 8. Condition of fre~ises A. The enjoyment and use of all entrances, exits and approaches, and means of entrance and approach then existing in favor I af said future premises shall not be unreasonably interfered with or -8- . ". . ~ .' '<.,. . .. inte~~upted by any act or assent of Lessor du~1ng the term of this l.ease. B. Lessor covenants and agrees that said premises will be delive~ed to Lessee free ~~om all tenanoies an~ oooupancies and free from all orde~s, notices, and violations filed or entered I by any public or quasi-public authority and free from complaints and/or ~eports of violations noted or existing in, or filed with, any governmental authority, C. Lessor further covenants that all electrical, plumbing and heating equipm~nt and all doors and windows ~n said premises shall, upon the date of occupancy, be in first class wor~ing orqer and repair. 9. liot~ces All notices required or permitted to be given hereunder or by any provisions of law shall be given to the party to be notified PI personal delivery or sent by registe~ed or oertified mail addressed to Lesso~ at City Hall, Gilroy, CaU,fornia. and addressed to Le.see to the attention of the County Librarian at 70 West Redding Street, San Jose. California 95110. All notioes given as aforesaid shall be sufficient service thereof, and if sent by mail, shall be deemed given as of the date of deposit in the mails. 10. termination A. It is mutually agreed that this lease may be cancelled and terminated by Lessee if the whole or any part of the City of Gilroy se~ved by the branch library oooupying the said premises withdraws from the Santa Clara County Library System for any reason or purpose whatsoever, provided. however, the Lessor shall give Lessee written notice, in the manner hereinabove specified, at least one (1) year prior to Lessor's intention to withdraw from the Santa Clara County Lib;ary System. -9- .. I,:' J/ .... . -: ~'t'~ ~ . .. ~~: , B. It is understood by the parties hereto that Lessor intends to call, hold and conduct an election on April 8, 1969, for the approval to issue and sell general obligation bonds to finance the acquisition of land, construction of said building and the improvement of said premises. It is further understood and agreed by the parties hereto that, in the event that the approval of the bonds fails at said election for any reason, this agreement shall ipso facto become null and void, and the rights and obligations of the parties hereto shall cease and terminate, l1. End of Term Upon termination of this lease or any extension there- of, Lessee shall surrender said premises in as good condition as the same were in when Lessee took possession, reasonable wear and tear, damage from the elements, fire, Acts of God, structural deficiencies and repairs, and exterior deficiencies and repairs, or other casualty beyond the reasonable control of Lessee, excepted. l2. Successors and Assigns The foregoing covenants and conditions shall be binding upon the parties hereto and their respective heirs, successors, executors, administrators, legal representatives, and assigns. IN WITNESS WHEREOF, the parties hereto have subscribed JAN 13 1969 their names this ATTEST: JEAN PULLAN, Clerk ~~~s COUNTY OF SANTA CLARA ~~ By ..J / a n, oar 0 . upervisors "LESSEE" CITY OF GILROY By /;/7 '2/" "/... . /~. t-:%.. . 9' // . ,./~2W'~./L?d:f:::;-154:;"T7'-d'.-<..A-<>I./~"''''/ ( "LESSOR'".. . 1.. . ~ ti'Counse 1 -10- . " C/, /" ~/V'tct.;A'~1 ... .' ". LEAS}; i~C)n:m\[GJ:.r'r nE'LUEEH COLl!'}.':! OJ SANTA CLAR.A At-W CI',t! e? GJ.L1~O.:t FO:'.. mUlt1Cn l.D.:nli1,lY ---.-....-----.--.-.-"'-~......---.__...__,__._____.._..._<.HO_.._~._"_......_.....__....-..._ tl"11co ;s n lc.no,:"" 'lr"-'c:e~'l"~l}t br:.t-"'l''''-:'l1. t-''}"" Cf)'14'">f-y or. ~L t:) _ ~I ~~....e (.bf., JL....-. )\.'._",;.....1.,_ Mh..~t.... J.. Santa Clara) Cnlifo~nia (Lessee), ond the City of Gilroy, Califo~nia (Lessor,) 1. I.ess01: hc:ccby..lenscD to Lessee find Lessee hC:J:ehy rents froE! L(~ 8 so:;: 1-1-) "11- cn.,.~.;.li.l 'j ']'1',"1' C',)'ld l,'11 J (1'; ""0 l""t'\{"\")-'l ~:' re. .....t .(_v _.r.. i......~.3. J~(..~ ...t. ~;..,_ J. '-......., J...6,.iu ""' i.'L.I .1_ (;...V Santa Clara County AGscssor's Parcel No. 803-6-39 in the Cft'y of G.~1~n~ C'J'1~(1~111.'n .J.. J. J...,_ _,) , .. _..... _. .:;.,. 2. ':.\:'ho tOi:rfl. of thin lcas(~ 811E111 COTcm~nce on Suly 1) 1968.' Eithc~ party has the option to t8~minate this lco~8 at any time thercnfte~ by giving not less than thirty (30) dnys notice :$n u:d.i.:i.n.g to tho (lthc:c pn~~ty of :U:s elact:T.cm to do so. 3. ~~ ^ncl ~o~ ~n~~~1 ~~ ~~l.' ~~....t. .1. _ ~. ....~At:..\......, 1.. t, 1.8 nr'''i''I'.'~d .t:!S ...... (.-~~h~'"h>. ... fol1m';,s: (8.) 1...':~r,SC8 wIll k0'21' tl1":-: p:::C'2U5.S2S in gooo T.(:~p.;?~7y) r ":)')l"'f"..! no- ~, 1 t.,....o'..::-.r Gi Q-~. 0 ~-~ D_ ~~ll '1'~ C<' ~l,.',."j" J..,..., g. n.>->, ....n...! "])0_1 .'..:\~p t'1-,,:-. .L.\.,..J prem:tser,; and apptH~tena1C(1S and ~11 th1.ngG connected thm:c\'Tlth) -J.n n clean nnd healthy conciitlon and in 0' '" "", c' ..- f"~) .,.. -7 "" ~ t. 0\....' V j - "-\.l (,;....... '"'-~, (;..~.,.. i.ts ornl expense. And on the te:.:min<J.t:tOrl of thIs lcnf.lc in any \'my, I..ossce ';'l.tl1 yleld up thE': premi.fl8S to IJcssm: in g(J[)d cm:';I.(1:tt:i.o!:l m~d r.epaik~ clam~ge by sct of God OK oth8Z un- ">. avoiclnhle cncunltj7, en: .o):dil1t1-ry weHr and teuX' eXCI~l)tf;d. " (b) On at lc~st a quctto:rly bnsis,. Lensee \11.11 rcimbm: sc l.cs sor .LJ::vor' q..-ir! n.r: .-..".... J.' ~"'~q ''l;h, 1 J. /.11 '-'o.l.b.1 cJ, I....... (..1.\.....,....> , 1969 fm: }.e s sc)':-< f S C{\;~ 'i: ':1'1 1" ,,',"i n ~ p 'c ,"." 'Jl~ '-" fo" , """" C' .. ... ~ - ~ h I:,C...:.............lo..,t:? ~.~../l\...~ "L..~\ - i.. '~""'::'~O"'::'~I" <lor-i"'l .;' :>At--.-; "'Y cr"1~"'-"'~1'p"-" C"l" ......r' \<,....,,'~ "1-- "S .;J -..~... IL-:t,....... tL ~l.. \..uL...,.....:. .,I,".l..l...:.~ ..>)...b 'C>'d....t',.J..:-..L'..J: ~;.~1.1. . ......- ......... :")""" ..... 'It-~ Cl)in.l....c..Lt;.,~, ...I.0n. p~cmlums fo~ Mnry Ann Prien DO long ..,2.... VI (.fl. t. Ct.. ) ""'...,.""...._,__".....'_<,....,"'"..,_,..!~,...~cii"",..."'_l0t~""'..~~~,..'t,Y<~~'b.,,,,-."t.;"~."'A.~.."'_"',,,..,,""'~,.,'04.._...._'''''',"~,,,C".","" _...-+~_.,,-"'-- .~ .. .. ~.....",f#h..,,_~1 J,"'lj!(jI_JW~ ,'";-:IlI!i.,'-;,-,, . ~ ,. . ... as she is cluployed during the term of this lease at the lea sod premises as museum attend,,~n.t . (c) Lessor. mny continue to occupy and use that portion of the leased premises presently used by Lessor 8S a museum end Lessee will provide full utility service therefor, and will mainta:i.n such prem1.s€s as pro'\r:tdcd in paragraph 3 (8) hereof, all at Lessee's sole expense. ..4. On at least a qum:tcrly basis, Lessee will reimbur se Lessor f:l:om and after .r!mt1~rry 1, 1969 for Lessor's cost .in making p.r!y.nents for wages, social security con.. tributions and worl~acntB compensation premit~s for Esther Cra~'7ford Hent't'lort.h so long as she is employed duri.ng the term of this lease at the lOBBea premises as library aS$ist~nt. 5. It is e~p:cessly covcnaJ.lted and agreed that th~ l.e8GOr shall not be li.nble to the I.essec, or to any other person whomsoevex for any injury or damage that may result to any person or 'propc:cty, in or about said leased premises bY' reason of the condition or want of xcpair of said premises, or f:com plumbillg or heuting app.:n:ntus the:ceon; or on, account of any injury or dam.nge to ~.my person or property caused by gas, fire, oil, steam or electricity, or fr.om any other cause ~mntsoever arising on pa~d premises; and Lessee expresaly covenants as a material consideration for this lease to hold the Lessor har.mless and to defend the Lessor against any and nll claims for injuries to persons or da~age to propcr.ty, in, upon, or about said leased pr{~mises from any cause 'tV'hntsoevcr during the tenn hereof. 6. The Lessee llgrees, durlng the term of this lease, to insure all of the above described equipment, buildings and ..2- x. ,t.!"",. ,II,~llI ,. I. I 1'1 ,"", '- '? ~ .. property againct all 103s or dam~gl..; by fire m: other casualty t , on the same terms and conditions and limits as said property is now insured by Lessor; with" Lessee to pay all premiums. 7. Books, materials and equipment located in the museum at the leased premises remoil1 the property of the City of Gilroy. Booka aud materials located in the library portion of the building at the leased premises which lTcre o~med by the City of Gilroy upon the consolidation of the Gilroy Public Library with the Santa Clara County Free Library on July 1, 1968 remain the property of the City of Gilroy until such time as the County Libxarian declares them -to be w'ori1 out:, obsolete or Ullusnblc. this agreement: as of__ IN WIi~ESS tnlmlEOF~ the parties hereto have executed JAN 2 0 1969 --.....-...-~~,.-------...... . ,*__4 COl.rN'fY OF S/I.NtI'A CLARA A1~.rEST : JEAN PUi,,J..AN, Clerk Boaxd of Supervisors ~-J Q::~ CITY OF GILROY By2(~45~ Mayor APPROVED liS TO FORN: ls/ Don~ld J. Fallon neputy C-ounty Counser--- ,.'. -3...