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HomeMy WebLinkAboutAgreement - Gilroy Gardens Familty Theme Park - 12th Amendment - Single TenantTWELFTH AMENDEMENT TO SINGLE TENANT LEASE BETWEEN GILROY GARDENS FAMILY THEME PARK AND THE CITY OF GILROY This Twelfth Amendment to Single Tenant Lease (“Eleventh Amendment”) is made and entered into as of February 28, 2023 (“Effective Date”), by and between GILROY GARDENS FAMILY THEME PARK, a Delaware nonprofit corporation, formerly known as Bonfante Gardens, Inc., (“Tenant”) and the CITY OF GILROY, a California municipal corporation (“Landlord”). Recitals WHEREAS, Landlord and Tenant are parties to that certain Single Tenant Lease, dated as of February 28, 2002, (“Original Lease”), as amended by that certain First Amendment to Single Tenant Lease, dated as of July 21, 2008 ("First Amendment'), as amended by that certain Second Amendment to Single Tenant Lease, dated as of July 28, 2009 ("Second Amendment'), as amended by that certain Third Amendment to Single Tenant Lease, dated as of April 6, 2010 ("Third Amendment'), as amended by that certain Fourth Amendment to Single Tenant Lease, dated as of June 5, 2012 ("Fourth Amendment'), as amended by that certain Fifth Amendment to Single Tenant Lease, dated as of November 4, 2014 ("Fifth Amendment'), as amended by that certain Sixth Amendment to Single Tenant Lease, dated as of September 21, 2016 ("Sixth Amendment'), as amended by that certain Seventh Amendment to Single Tenant Lease, having an effective date of February 28, 2018 ("Seventh Amendment'), as amended by that certain Eighth Amendment to Single Tenant Lease, dated as of February 28, 2019 (“Eighth Amendment”), as amended by that certain Ninth Amendment to Single Tenant Lease, having an effective date of February 29, 2020 (“Ninth Amendment”); as amended by that certain Tenth Amendment to Single Tenant Lease, having an effective date of February 28, 2021 (“Tenth Amendment”); as amended by that certain Eleventh Amendment to Single Tenant Lease, having an effective date of February 28, 2022 (“Eleventh Amendment”); and, WHEREAS, The Original Lease, First Amendment, Second Amendment, Third Amendment, Fourth Amendment, Fifth Amendment, Sixth Amendment, Seventh Amendment, Eighth Amendment, Ninth Amendment, Tenth Amendment, and Eleventh Amendment shall sometimes hereinafter be collectively referred to as the "Lease". Pursuant to the terms and conditions of the Lease, Landlord leases to Tenant, and Tenant leases from Landlord certain real property located in Gilroy, California, which is improved with a horticultural education and theme park known as "Gilroy Gardens", which was developed and constructed by Tenant and is more particularly described in the Lease; and, WHEREAS, The Tenth Extension Term (as defined in Section 2 of the Eleventh Amendment) was scheduled to expire on February 28, 2023; and, WHEREAS, Landlord and Tenant desire to extend the Term of the Lease for a one (1) year period through and including February 29, 2024; and, WHEREAS, to extend the agreement, certain updates to the agreement, including but not limited to changes in levels of insurance, are required. NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth below and for other valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties hereto agree as follows: 1. Defined Terms. All capitalized terms used herein, except as otherwise expressly provided herein, shall have the meanings ascribed to them in the Lease. 2. Extension of Lease Term. The Term of the Lease is hereby extended for a period of one (1) year, and shall expire on February 29, 2024 ("Eleventh Extension Term"), unless sooner terminated in accordance with the terms of the Lease. 3. Insurance. Section 7.1 Tenant to Maintain, is hereby amended to read as follows: 7.1 Tenant to Maintain. Tenant shall at all times maintain insurance coverage providing coverage at least as broad as the existing insurance coverage maintained by Tenant that is described in the schedule attached hereto as Exhibit C. Without limiting the scope of the insurance requirements of Exhibit C, but as a supplement to the requirements thereof, Tenant shall maintain in full force throughout the Term, commercial general liability insurance providing coverage on an occurrence form basis with limits of not less than Ten Million and No/100ths Dollars ($10,000,000.00) each occurrence for bodily injury and property damage combined, Ten Million and No/100ths Dollars ($10,000,000.00) annual general aggregate, and Ten Million and No/100ths Dollars ($10,000,000.00) products and completed operations annual aggregate. Tenant's liability insurance policy or policies shall: (i) include premises and operations liability coverage, products and completed operations liability coverage, broad form property damage coverage including completed operations, blanket contractual liability coverage including, to the maximum extent possible, coverage for the indemnification obligations of Tenant under this Lease, and personal and advertising injury coverage; (ii) provide that the insurance company has the duty to defend all insureds under the policy; (iii) provide that defense costs are paid in addition to and do not deplete any of the policy limits; (iv) cover liabilities arising out of or incurred in connection with Tenant' s use or occupancy of the Premises or the Property; and (v) extend coverage to cover liability for the actions of Tenant' s Representatives. 4. Counterparts; Facsimile Signatures. This Twelfth Amendment maybe executed in counterparts, each of which shall be deemed an original and which together shall constitute one instrument. The signatures of any party or parties on this Twelfth Amendment transmitted by facsimile or electronic mail shall be deemed the same as an original signature and shall be binding on the party transmitting the same. 5. Lease Status. Tenant warrants, represents and certifies to Landlord that, to the best of Tenant's actual knowledge, as of the date of this Twelfth Amendment: (a) Landlord is not in default under the Lease; and (b) Tenant does not have any defenses or offsets to payment of rent and performance of its obligations under the Lease as and when same becomes due. 6. Certified Access Specialist Disclosure. Landlord hereby makes the certified access specialist disclosure required under California Civil Code Section 1938, which disclosure is more particularly set forth in Exhibit “A” attached hereto. Exhibit “A” is incorporated into this Twelfth Amendment by reference and made a part hereto. 7. Modification. Except as modified above the terms and conditions of the Lease shall remain unmodified and in full force and effect. In the event of any conflict or inconsistency between the terms of this Twelfth Amendment and the terms of the Lease the terms of this Twelfth Amendment shall control. IN WITNESS WHEREOF, the parties have caused this Twelfth Amendment to be executed as of the dates set forth besides their signatures below. LANDLORD:TENANT: CITY OF GILROY GILROY GARDENS FAMILY THEME PARK By: _________________________________By: _________________________________ City Administrator Board Chair Date: ________________________________Date: ________________________________ ATTEST By: _________________________________ City Clerk APPROVED AS TO FORM By: _________________________________ City Attorney Exhibit “A” Certified Access Specialist Disclosure For purposes of California Civil Code Section 1938, Landlord hereby discloses to Tenant that, as of the Effective Date, to Landlord’s actual knowledge, the Premises have not undergone inspection by a Certified Access Specialist (“CASp”). Pursuant to California Civil Code Section 1938(e), Landlord hereby further discloses to Tenant the following: “A Certified Access Specialist (CASp) can inspect the subject premises and determine whether the subject premises comply with all of the applicable construction-related accessibility standards under state law. Although state law does not require a CASp inspection of the subject premises, the commercial property owner or lessor may not prohibit the lessee or tenant from obtaining a CASp inspection of the subject premises for the occupancy or potential occupancy of the lessee or tenant, if requested by the lessee or tenant. The parties shall mutually agree on the arrangements for the time and manner of the CASp inspection, the payment of the fee for the CASp inspection, and the cost of making any repairs necessary to correct violations of construction-related accessibility standards within the premises.” Notwithstanding the foregoing and/or anything to the contrary contained in the Lease (as amended), Landlord and Tenant hereby agree and acknowledge that, in the event Tenant desires to obtain a CASp inspection, then: (a) Tenant shall provide Landlord with no less than twenty (20) business days’ prior written notice and, upon receipt of such notice, Landlord shall have the right to, among other things, (i) select the date and time at which such inspection shall occur, and (ii) have one (1) or more representatives present during such inspection. (b) Tenant hereby agrees and acknowledges that it shall (i) provide Landlord with a copy of any and all findings, reports and/or other materials (collectively, the “CASp Report”) provided by the CASp immediately following Tenant’s receipt thereof, (ii) at all times maintain (and cause to be maintained) the CASp Report and its findings (and any and all other materials related thereto) confidential and (iii) pay for the CASp inspection and CASp Report at Tenant’s sole cost and expense. If Tenant receives a disability access inspection certificate, as described in subdivision (e) of California Civil Code Section 55.53, in connection with or following any CASp inspection undertaken on behalf, or for the benefit, of Tenant, then Tenant shall cause such certificate to be provided immediately to Landlord. (c) If the CASp Report identifies any violation(s) of applicable construction-related accessibility standards (“CASp Violation(s)”), Tenant shall immediately provide written notice to Landlord of any and all such CASp Violation(s). In such event, Tenant shall, at Tenant’s sole cost and expense, perform, or cause to be performed, any repairs, modifications and/or other work necessary to correct such the CASp Violation(s) (any such repairs, modifications and/or other work being collectively referred to herein as the “CASp Work”). Tenant shall commence (or cause the commencement of) such CASp Work no later than fifteen (15) business days after Landlord’s receipt of the CASp Report in accordance with the terms and conditions of the Lease (as amended). Tenant shall diligently prosecute (or cause to be diligently prosecuted) to completion all such CASp Work in a lien free, good and workmanlike manner, and, upon completion, obtain an updated CASp Report showing that the Premises then comply with all applicable construction-related accessibility standards. Any and all cost and expense associated with the CASp Work and/or the updated CASp Report (which Tenant shall provide to Landlord immediately upon Tenant’s receipt thereof) shall be at Tenant’s sole cost and expense. Without limiting the generality of the foregoing, Tenant hereby agrees and acknowledges that: (i) Tenant assumes all risk of, and agrees that Landlord shall not be liable for, any and all loss, cost, damage, expense and liability (including, without limitation, court costs and reasonable attorneys' fees) sustained as a result of the Premises not having been inspected by a Certified Access Specialist (CASp); (ii) Tenant's indemnity obligations set forth in the Lease (as amended) shall include any and all claims relating to or arising as a result of the Premises not having been inspected by a Certified Access Specialist (CASp); and (iii) Landlord may require, as a condition to its consent to any alterations, additions or improvements, that the same be inspected and certified by a Certified Access Specialist (CASp) (following completion) as meeting all applicable construction-related accessibility standards pursuant to California Civil Code Section 55.53.