Ord. 2547 - Laserfiche WebLink

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E. The City and Owner now wish to enter into a lease agreement, with terms that are in substantial compliance with the Sections 2.3(A) and 2.3(B) of the Development Agreement, in order to: 1) provide for the design and improvement of the Teen Center; 2) allow for the City’s exclusive use of the Teen Center during designated hours and time periods; and, 3) to set forth the respective obligations of the parties in scheduling the use and maintenance of the Teen Center. NOW THEREFORE, and in consideration of the promises, covenants, conditions and agreements contained herein, the parties agree as follows: LEASE AGREEMENT SECTION 1. GENERAL TERMS 1.1 Recitals, Exhibits and Defined Terms. The Recitals above and Exhibits attached hereto are incorporated herein by reference. Terms are defined throughout this Lease as indicated in bold language. 1.2 Parties to the Lease; Assignees or Transfers of Ownership. As contemplated by the Development Agreement and subject to its terms, Owner may sell, assign or transfer in whole or in part its rights, duties and obligations under the Development Agreement. Accordingly, it is the Parties’ intent and understanding that the obligations and duties that arise as part of this Lease shall apply and bind any successors or assignees of Owner ’s rights, duties and obligations under the Development Agreement. Owner also agrees to notify City in writing of any such proposed transfer at least thirty (30) days prior to completing such transfer, as provided for in Section 10.1(B) of the Development Agreement. The parties also agree that if the ownership of the Property is transferred or assigned to a third party, the term “Owner” as used in this Lease shall refer to any subsequent owners, assignees or transferees of the Property, or to any agent or representative designated by Owner. SECTION 2. TERM 2.1 Term of Lease. This Lease and its terms shall be binding on the parties upon the Effective Date. The term of this Lease shall commence upon the date that the City has a right to occupy and takes possession of the Teen Center following Owner’s construction of the Teen Center pursuant to Section 3 below (“Term Commencement Date”) and shall continue for a period of twenty-five (25) years (“Term”), unless otherwise terminated or extended as provided herein. Contemporaneously with the issuance of the first certificate of occupancy (temporary or final) for the Teen Center, the Parties shall execute the “Confirmation of Term of Lease” form attached to this Lease as Exhibit 2, in order to confirm the Term Commencement Date of the Lease. 2.2. Term Extension. In order to mitigate any potential interruptions with programming that may occur at the end of the Term, the City may request one (1) five (5)-year extension of the ATTY/ORD.0002/CC ORD APPROVING DEVELOPMENT AGREEMENT (901 EL CAMINO REAL) - EXHIBIT A REV: 04-23-25 VR Page 319 of 336