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OSB 14-022RESOLUTION NO. OSB -14 -022 A RESOLUTION OF THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE POWAY REDEVELOPMENT AGENCY AUTHORIZING THE FIRST AMENDMENT TO THE LEASE AGREEMENT WITH HORIZON HOSPICE, INC. WHEREAS, pursuant to Health and Safety Code Section 34181(e), the Successor Agency shall determine whether any contracts, agreements, or arrangements between the dissolved redevelopment agency and any private parties should be terminated or renegotiated to reduce liabilities and increase net revenues to the taxing entities, and present proposed termination or amendment agreements to the Oversight Board for its approval; and WHEREAS, Horizon Hospice, Inc. leases the former Redevelopment Agency property located at 13053 Poway Road, Poway, California; and WHEREAS, the Successor Agency authorized a Lease Agreement (Lease) with the current tenant for a one -year term beginning October 1, 2013; and WHEREAS, in accordance with the provisions of the Lease, both parties would like to extend the term of the Lease for an additional one -year period beginning October 1, 2014; and WHEREAS, Horizon Hospice, Inc. has agreed to take over responsibility for roof repair, maintenance, and related costs during the term of the Lease; and WHEREAS, Horizon Hospice, Inc. may deduct the cost of roof repair, maintenance, and related costs from the monthly rent up to an annual maximum amount of $5,000 during the term of the Lease; and WHEREAS, Horizon Hospice, Inc. will be solely responsible for the cost of roof repair, maintenance, and related costs once the $5,000 maximum has been reached; and WHEREAS, the Successor Agency and Horizon Hospice, Inc. would like to extend the term of the Lease for an additional one -year period beginning October 1, 2014, and amend Section 6(a) of the Lease regarding maintenance and repairs by executing the First Amendment to the Lease Agreement (Exhibit A); and WHEREAS, the Lease is a "triple net" lease that generates $51,363.84 net revenue annually to the Successor Agency, which is used to offset obligations of the former Redevelopment Agency and increases the funds available for distribution to the other taxing entities. NOW, THEREFORE, the Oversight Board of the Successor Agency to the Poway Redevelopment Agency does hereby resolve as follows: Section 1. The Oversight Board hereby finds and determines that the foregoing recitals are true and correct. Section 2. A duly noticed public meeting having been held, the Oversight Board hereby authorizes the Successor Agency to execute the First Amendment to the Lease Agreement. Resolution No. OSB -14 -022 Page 2 Section 3. This Resolution shall take effect immediately upon its adoption. PASSED, ADOPTED and APPROVED by the Oversight Board to the Successor Agency of the Poway Redevelopment Agency at a regular meeting this 24th day of September, 2014. Bruce Tarzy Chair ATTEST: �asi �� Sheila R. Cobian, CMC, Secretary Resolution No. OSB -14 -022 Page 3 STATE OF CALIFORNIA ) ) ss. COUNTY OF SAN DIEGO) I, Sheila R. Cobian, CIVIC, Secretary, Successor Agency to the Poway Redevelopment Agency, do hereby certify under penalty of perjury that the foregoing Resolution No. OSB -14 -022 was duly adopted by the Oversight Board to the Successor Agency of the Poway Redevelopment Agency at a meeting of said Oversight Board held on the 24th day of September, 2014 and that it was so adopted by the following vote: AYES: TARZY, FONG- SAKAI, LYON, SCOTT, LADERMAN, THOLANDI NOES: NONE ABSENT: TAM DISQUALIFIED: NONE 'zJQ Sheila )R-. Cobian, CIVIC, Secretary Resolution No. OSB -14 -022 Page 4 Exhibit A FIRST AMENDMENT TO LEASE AGREEMENT This FIRST AMENDMENT TO LEASE AGREEMENT ( "First Amendment "), by and between the City of Poway, solely in its capacity as successor agency to the Poway Redevelopment Agency ( "Successor Agency "), a public body, corporate and politic, and Horizon Hospice, Inc., a California corporation ( "Tenant "), is entered into effective this I" day of October, 2014. RECITALS 1. The City of Poway solely in its capacity as Successor Agency to the former Poway Redevelopment Agency ( "Successor Agency ") and Horizon Hospice, Inc., a California corporation (Tenant "), entered into that certain Lease Agreement ( "Lease ") with a term beginning October 1, 2013, by which the Successor Agency and Tenant established the terms and conditions for use of the real property located at 13053 Poway Road, Poway, California ( "Leased Premises "); and 2. Section 26 of the Lease allows for the Lease to be altered, amended, or repealed only by a writing signed by all parties; and 3. Successor Agency and Tenant now wish to extend the term of the Lease for a one -year period beginning October 1, 2014; and 4. Tenant has agreed to take over responsibility for roof repair, maintenance, and related costs during the term of the Lease; and 5. Tenant may deduct the cost of roof repair, maintenance, and related costs from the monthly rent up to an annual maximum amount of $5,000 during the term of the Lease; and 6. Tenant will be solely responsible for the cost of roof repair, maintenance, and related costs once the $5,000 maximum has been reached; and 7. This First Amendment is necessary to extend the term of the lease for a one -year period commencing October 1, 2014, and to amend Section 6(a) of the Lease to include Tenant repair and maintenance of the roof and related costs. NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS: Section 1. Section 1 of the Lease is hereby amended to read as follows: 1. Lease Term. Successor Agency hereby leases to Tenant the Leased Premises, and Tenant hereby leases the same from Successor Agency, for a two -year term commencing on October 1, 2013 ( "Commencement Date "). This lease can be terminated by either party with 60- days prior written notice. Beginning October 1, 2015, the Lease will continue on a month -to- month basis upon agreement of both parties. Resolution No. OSB -14 -022 Page 5 Section 2. Section 6 (a) of the Lease is hereby amended to read as follows: (a) Maintenance and Repairs. During the Lease Term, Tenant shall make all necessary repairs and maintenance to the Leased Premises at Tenant's own expense, including such things as routine repairs of floors, walls, plumbing, ceilings, and other parts of the Leased Premises damaged or worn through normal occupancy. Tenant shall also make any and all repairs relating to the Tenant's specific use of the Leased Premises at Tenant's expense. Tenant shall maintain all exterior portions of the Leased Premises that are visible to the public in good condition, including the fencing, landscaping, building exteriors, and paint. Tenant shall be responsible for roof repair, maintenance, and related costs. Tenant may deduct the cost of roof repair, maintenance, and related costs from the monthly rent up to an annual maximum amount of $5,000 during the term of the Lease. Support documentation for these costs must be submitted to the Successor Agency for review prior to the deduction of rent. Tenant will be solely responsible for the cost of roof repair, maintenance, and related costs once the $5,000 maximum has been reached. Graffiti on the Leased Premises shall be removed by Tenant within seventy -two (72) hours. In no event shall this Lease be interpreted to require Successor Agency to expend funds for the purpose of conducting repairs or maintenance of the Leased Premises, other than to conduct repairs to plumbing or electrical system infrastructure up to the point of entry into the building. Tenant acknowledges and agrees that Tenant is familiar with the condition of the Leased Premises and is aware of the adequacy and fitness of the Leased Premises for Tenant's intended use thereof for the operation of the Business. SUCCESSOR AGENCY EXPRESSLY DISCLAIMS ANY WARRANTY OF HABITABILITY, WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE, OR ANY COVENANT OF QUIET ENJOYMENT WITH RESPECT TO THE LEASED PREMISES AND /OR TENANT'S USE THEREOF PURSUANT TO THIS LEASE. In addition to maintaining the Leased Premises in the condition required by all applicable laws, rules, and regulations as set forth above, Tenant shall also be responsible for maintaining any alarm system, fire system, smoke detectors, and backflow prevention devices as may exist on the Leased Premises, and for providing pest control as needed on the Leased Premises. Section 3. Except as otherwise amended by this First Amendment, all other terms and conditions of the Lease shall remain in full force and effect. (SIGNATURES ON FOLLOWING PAGE) IN WITNESS WHEREOF, the Parties have caused this First Amendment to be Resolution No. OSB -14 -022 Page 6 IN WITNESS WHEREOF, the Parties have caused this First Amendment to be signed and executed the day and year first above written. CITY OF POWAY SOLELY IN ITS CAPACITY AS SUCCESSOR AGENCY, a separate public entity By: ; Daniel Singer, Exe utive Dire DATED: — t 4 HORIZON HOSPICE, INC., a California corporation Ay: DATED: erger, Trea er APPROVED AS TO FORM: 64, �', Morgy6 L. le Succes or Agency General Cou el ATTEST: � D`� c - Sheila R. obian, CMC, Secretary