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