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Home My WebLink AboutReso 64-21.Ciano.Lease.AuthRESOLUTION NO. 64-21 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA APPROVING AMENDMENT 1 TO THE LEASE BETWEEN THE CITY OF MORRO BAY AND CIANO REAL ESTATE INC. EXTENDING THE LEASE FOR 3 YEARS FOR LEASE SPACE "A" AT 781 MARKET AVENUE THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay (City) is the lessor of the property at 781 Market Avenue, in the City of Morro; and WHEREAS, Ciano Real Estate, Inc. (Lessee) is proposing to lease Space A of the 781 Avenue Building; and WHEREAS, City and Lessee have agreed to an amendment of the lease agreement to increase the term by 3 years, for a portion of the building located at 781 Market Avenue identified as Space A. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, as follows: 1. The attached new Lease Amendment 1 for of Space A in the 781 Market Avenue Building Lease is hereby approved. 2. The Mayor is hereby authorized to execute said Lease Agreement. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 12th day of October 2021 on the following vote: AYES' Headding, Addis, Barton, Heller NOES° None ABSENT: None RECUSED: Ford ATTES��amew&J OAAStl- ANA SWANSON, City Clerk AMENDMENT #1 TO LEASE AGREEMENT FOR PORTION OF 781 MARKET AVENUE This Amendment (this "Amendment #1") is made and entered into as of the 13th day of October, 2021, by and among the City of Morro Bay, a municipal corporation of the State of California, hereinafter called "City,' and Ciano Real Estate Inc., a California corporation, hereinafter called 'Tenant." (Collectively, City and Tenant are sometimes referred to herein as the "Parties.") WHEREAS, City and Tenant are parties to the certain lease, effective as of December 11 2019 (the "Lease") for a portion of City -owned property at 781 Market Avenue, as further defined in the Lease (the ' Premises"); WHEREAS, the Lease term ended on December 10, 2020, and, pursuant to the provisions of the Lease has operated in a holdover state on a month -to -month basis since; and WHEREAS, City and Tenant desire to extend the term of the Lease with certain modifications. NOW THEREFORE, City, and Tenant agree as follows: 1. Unless expressly stated herein, words used in this Amendment #1 shall have the same meaning as stated in the Lease, except to the extent the context requires otherwise. 2. The foregoing recitals are incorporated into this Amendment #1 as true and correct. 3. Tenant confirms to City Tenant has no actual knowledge or reasonable cause to believe any release of hazardous substance has come to be located on/or beneath the real property during the term of Tenant s occupation of the Premises that has not been reported pursuant to Health & Safety Code Section 253597. 4. City and Tenant agree to amend the Lease as follows: a. The Term of the Lease shall be extended through October 12, 2024, unless otherwise terminated as permitted by the Lease. b. Section 2.3 of the Lease is amended to add the following: City shall have the right to terminate this Lease within the Term upon providing Tenant at least sixty -days' written notice City has entered into a purchase and sale agreement with any party for redevelopment of the Premises. c. As of November 1 2021, the monthly Rent is increased to Two Thousand Eighty Dollars ($2,080.00). As of October 13, 2022, and October 13, 2023, 01181.0001/742704.3 JPANNONE_ALWY 1 of 2 AMENDMENT #1 TO LEASE AGREEMENT FOR PORTION OF 781 MARKET AVENUE This Amendment (this "Amendment #1") is made and entered into as of the 13th day of October, 2021, by and among the City of Morro Bay, a municipal corporation of the State of California, hereinafter called "City," and Ciano Real Estate, Inc., a California corporation, hereinafter called "Tenant." (Collectively, City and Tenant are sometimes referred to herein as the "Parties.") WHEREAS, City and Tenant are parties to the certain lease, effective as of December 11, 2019 (the ' Lease") for a portion of City -owned property at 781 Market Avenue, as further defined in the Lease (the ' Premises"); WHEREAS, the Lease term ended on December 10, 2020, and, pursuant to the provisions of the Lease has operated in a holdover state on a month -to -month basis since; and WHEREAS, City and Tenant desire to extend the term of the Lease with certain modifications. NOW THEREFORE, City, and Tenant agree as follows: 1. Unless expressly stated herein, words used in this Amendment #1 shall have the same meaning as stated in the Lease, except to the extent the context requires otherwise. The foregoing recitals are incorporated into this Amendment #1 as true and correct. 3. Tenant confirms to City Tenant has no actual knowledge or reasonable cause to believe any release of hazardous substance has come to be located on/or beneath the real property during the term of Tenant's occupation of the Premises that has not been reported pursuant to Health & Safety Code Section 253597. 4. City and Tenant agree to amend the Lease as follows. a. The Term of the Lease shall be extended through October 12, 2024, unless otherwise terminated as permitted by the Lease. b. Section 2.3 of the Lease is amended to add the following: City shall have the right to terminate this Lease within the Term upon providing Tenant at least sixty -days' written notice City has entered Into a purchase and sale agreement with any party for redevelopment of the Premises. c. As of November 1 2021, the monthly Rent is increased to Two Thousand Eighty Dollars ($2,080.00). As of October 13, 2022, and October 13, 2023, 01181.0001/742704.31 PA N N O N E_A L W Y 1of2 the Rent shall be increased in an amount equal to the increase in the then applicable Consumer Price Index for the Los Angeles area (Los Angeles - Long Beach -Anaheim) (CPI) for the twelve-month period immediately preceding each of those dates. d. Section 27 of the Lease is amended so the Rent shall increase in an amount equal to the then annual applicable CPI for the twelve-month period immediately preceding each October 13th if a month -to -month holdover remains in effect. 5. Except as expressly stated herein, all provisions of the Lease shall remain in full force and effect. 6. The Effective Date of this Amendment #1 is the date first written above, as long as it has been signed by the Parties. IN WITNESS WHEREOF, the Parties have executed this Amendment #1 as of the date written above. CITY OF MORRO BAY By: APPROVED AS TO FORM: CIANO REAL ESTATE, INC., A CALIFORNIA CORPORATION By: Its By: Its S n'yvnte/PC ALC-2 By: Chris F. Neumeyer, City Attgfney ATTEST: akr- Dana Swanson, City Clerk 01181.0001/742704.3 JPANNONE_ALWY 2 of 2 the Rent shall be increased in an amount equal to the increase in the then applicable Consumer Price Index for the Los Angeles area (Los Angeles - Long Beach -Anaheim) (CPI) for the twelve-month period immediately preceding each of those dates. d. Section 27 of the Lease is amended so the Rent shall increase in an amount equal to the then annual applicable CPI for the twelve-month period immediately preceding each October 131" if a month -to -month holdover remains in effect. 5. Except as expressly stated herein, all provisions of the Lease shall remain in full force and effect. 6. The Effective Date of this Amendment #1 is the date first written above, as long as it has been signed by the Parties. IN WITNESS WHEREOF, the Parties have executed this Amendment #1 as of the date written above. CITY OF MORRO BAY CIANO REAL ESTATE, INC., A CALIFORNIA CORPORATION By: By: John Headding, Mayor APPROVED AS TO FORM: Chris F. Neumeyer, City Attorney ATTEST: Dana Swanson, City Clerk 01181.0001/742704.3 JPANNONE_ALWY 2of2 AA% Fth-74 /k/i Clvgi"to Its C_r D By: Its By: