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CC - Item 4G - Consideration Of Opetion To lease Agreement For Freweay Sign At The 60 Freeway And San Gabrile BoulevardTO: HONORABLE MAYOR AND MEMBERS ROSEMEADDCCITY COUNCIL FROM: BILL CRODWE, CITY MANAGER DATE: AUGUST 7, 2002 RE: CONSIDERATION OF OPTION TO LEASE AGREEMENT FOR FREEWAY SIGN AT THE 60 FREEWAY AND SAN GABRIEL BOULEVARD Staff has negotiated an option agreement for leasing a freeway sign location on property adjacent to the 60 Freeway that is owned by the Perlin Trust and improved with Charley Brown's Restaurant, a Motel 6 and a coffee shop. The City's sign would be located near, or in place of the existing Motel 6 sign on the property and would be visible from both directions of the freeway. State law allows freeway signs to be erected within a redevelopment project area. Those signs may advertise businesses located anywhere within the project area. An interested developer has advised us that their plan to develop a "big box" store within Project Area No. I is contingent r upon securing freeway signage pursuant to that law. The basic terms of the option agreement are: `- 1. The City pays $7,500 for the option to enter into the lease. It has until December 31, 2003, to exercise the option. If the option is exercised, the $7,500 is applied to the first three months of rent. If it is not, the property owner keeps the option payment and the City has no obligation to lease the location. 2. The rent is $2,500 per month. The rent is adjusted annually, beginning January 1, 2004, by the greater of 3.0% or the percentage increase in the cost of living index. 3 The term of the lease is 10 years with a 10 year renewal option. The City is allowed to advertise up to four businesses on the sign. However, the lessor's approval is required for any business that competes with the restaurant, motel and coffee shop uses on the property. — G<1UNClt AGENDA AUG 13 2002 ��R A�1• - Tr . CL' -. 1044 MONTEGO DRIVE July 17, 2002 LOS ANGELES. CALIFORNIA 90049 Mr. Peter Wallin, Esq. WALLIN, KRESS, REISMAN & KRANITZ 280028 TH Street, Suite 315 Santa Monica, CA 90405 -6205 BERNARD PERLIN • 13jo1 472 -6454 Fax: (310) 476 -3858 Subject: Freeway Sign — Pomona Freeway @ San Gabriel Blvd., Rosemead Dear Mr. Wallin: Enclosed are two executed and notarized copies of the Option to Lease Agreement covering the subject freeway sign. These leases are tendered to you with the understanding that to be effective, a fully executed copy along with the required consideration are to be received by us prior to 30 days after the date of this letter. Thank you for your efficient and pleasant service. Very truly yours, Recording Requested by: City of Rosemead After Recordation, Mail to: Rosemead City Clerk Space above this line for recorder's use OPTION TO LEASE AGREEMENT Preamble .This Option Agreement is made 2002, at Rosemead, California ,by Bernard Perlin and Adele Perlin, trustees under Trust Agreement Dated April 4, 1986, as Restated April 17, 1991 ( "Optionor ") and the City of Rosemead, a municipal corporation ( "Optionee "). Recitals WHEREAS, Optionors are the owners of certain improved real property referred to in this Agreement as "the Property," legally described as: Parcel 4 of Parcel Map 3559 in the City of Rosemead, County of Los Angeles, State of California, as per map recorded in Book 43, Page 15 of Parcel Maps in the Office of the County Recorder of said County. WHEREAS, Optionee desires to acquire the right to lease a 25 foot by 5 foot portion of the Property (the "Premises ") for the purpose of erecting and maintaining an advertising sign thereon, without becoming obligated to lease the Property, at an agreed rent and under specified terms and conditions; NOW, THEREFORE, it is agreed as follows: Grant of Option 1. Optionors hereby grant to Optionee the exclusive right to lease the Premises at a price and under the terms and conditions set forth in Exhibit A. Option Period 2. This option will commence on the day and year first above written and will remain in effect until December 31, 2003, at 5:00 p.m. Consideration 3. This option is granted in consideration of Optionee's payment to Optionors of the sum of $7,500.00, receipt of which is hereby acknowledged. Application of Consideration to First Three Months' Rent 4. if this option is exercised in accordance with its tenns, then the consideration paid Optionors by Optionee will apply to payment of the first three months' rent under the lease. Retention of Consideration 5. In the event this option or any extension thereof is not exercised, all sums paid and services rendered to Optionors by Optionee will be retained by Optionors in consideration of the granting of this option. Exercise of Option 6. If Optionee is not in breach of this Agreement it may exercise this option by execution and tender to Optionors of an instrument in the form of Exhibit A with the desired Commencement Date inserted therein, which said Commencement Date shall be the date of exercise of the option. Optionors must then, with due diligence, execute, acknowledge, and deliver to Optionees an executed copy of the instrument. Automatic Termination 7. If Optionees fail to exercise this option in accordance with its terms and within the option period, then this option and the rights of Optionees will automatically and immediately terminate without notice. Thereafter, Optionees must properly execute, acknowledge, and deliver to Optionors within ten days of a request therefor, a release, quitclaim deed, or any other document required by Optionors or a title insurance company to verify the termination of this Agreement. Assignment 8. Optionees may assign this Agreement on condition that the written consent of Optionors is first obtained. Notices 9. Unless otherwise provided in this Agreement, any notice, tender, or delivery to be given under this Agreement by either parry to the other may be effected by personal delivery in writing or by registered or certified mail, postage prepaid, return receipt requested, and will be deemed communicated as of mailing. Mailed notices must be addressed as set forth below, but each party may change its address by written notice in .accordance with this paragraph. To Optionors: Bernard Perlin and Adele Perlin, trustees 1044 Montego Drive, Los Angeles, CA 90049 To Optionees: City of Rosemead 8838 E Valley Blvd. Rosemead, CA 91770 Entire Agreement 10. This instrument and the attached Exhibit A constitute the entire agreement between the parties relating to the option. Any prior agreements, promises, negotiations, or representations not expressly set forth in this Agreement are of no force and effect. Any amendment to this Agreement will be of no force and effect unless it is in writing and signed by the Optionors and Optionees. Attorneys' Fees 11. If any legal action or proceeding arising out of or relating to this Agreement is brought by either party to this Agreement, the prevailing party will be entitled to receive from the other parry, in addition to any other relief that may be granted, the reasonable attorneys' fees, costs, and expenses incurred in the action or proceeding by the prevailing 'fir' J Binding Effect 12. This Agreement will be binding on and inure to the benefit of the parties to this Agreement and their heirs, personal representatives, successors, and assigns. . Executed on 12002, at Rosemead, California. 0 OPTIONORS Bernard Perlin, Trustee Adele Perlin, Trustee CITY OF ROSEMEAD, OPTIONEE Bill Crowe, City Manager Acknowledgment State of California County of Los Angeles On July is, 2002 [date], before me, Nancy P. Carlson [name and title of officer taking acknowledgment], personally appeared Bernard Perlin and [name(s) of person(s) signing instrument], Adele Perlin [personally known, to me or proved to me on the basis of satisfactory evidence] to be the person[s] whose name [s] are [is or are] subscribed to the within instrument and acknowledged to me that they [he or she or they] executed the same in their [his or her or their] authorized capacities [capacity or capacities], and that by their instrument the person [s], or the entity upon executed the instrument. WITNESS my hand and 4ficial seal. Signature [his or her or their] signature [s] on the behalf of which the person [s] acted, 8 7 1 ee r L !, L.V - ..arc.. re c.ipr Pa:v : -:� ::ve:., rye +Sta.�.v�.•..�.�- ,�,�.,.....;z Exhibit A to Option to Lease Agreement Lease Agreement 1. Agreement to Lease. Bernard Perlin and Adele Perlin, trustees under Trust Agreement Dated April 4, 1986, as Restated April 17, 1991, ( "Lessors ") bereby lease and grant to The City of Rosemead, ( "Lessee ") a portion of that certain real property located in the City of Rosemead, County of Los Angeles, State of California, (the "Property") legally described as: Parcel 4 of Parcel Map 3559 in the City of Rosemead, County of Los Angeles, State of California, as per map recorded in Book 43, Page 15 of Parcel Maps in the Office of the County Recorder of said County. The portion leased consists of that 25 foot by 5 foot area (excepting that area now utilized by the existing "Motel 6" sign) depicted on Exhibit A attached hereto (the "Premises"), - together with free access to and upon the same. The installations, as defined in Paragraph 3, may overhang (cantilever beyond) the 25 by 5 foot area provided said overhang is over the Property and the bottom of the sign is at least 70 feet above the ground level existing below said sign. 2. Term. The lease shall be for a term of ten (10) years, commencing on the date of exercise of the option (the "Commencement Date "). Lessors grant Lessee a one -time option to extend this lease for a period of ten years (the "extended term ") from the original expiration date of this lease. The extended term of this lease, if any, shall be subject to all of the terns and conditions contained in this lease. To exercise this option, Lessee must not be in default of any of the provisions of this lease and must deliver written notice of its exercise of the option to Lessor a minimum of 120 days prior to expiration of the term of this lease. 3. Use of Premises. The Premises shall be used solely for the purpose of erecting and maintaining an advertising sign thereon, including necessary supporting structures, devices and connections, service ladders and other appurtenances (the "Installations "). The Installations may be used to advertise up to a maximum of four business located and doing businesses in the City of Rosemead. Said Installations shall be constructed at Lessee's expense substantially in conformity with the concept drawing attached hereto as Exhibit B. No business which directly competes with the restaurant, motel or coffee - shop uses on or adjacent to the Property may be advertised on the Installations without the written approval'of Lessors. 1 4. Rent a. Lessee shall pay to the Lessors rental in the amount of Thirty Thousand Dollars ($30,000.00) per year, payable monthly in advance on the first day of each month at $2,500.00 per month commencing upon the Commencement Date. b. Commencing on January 1, 2004, and continuing on the same day of each year thereafter ( "the Rent Adjustment Date"), the rent set forth in Section 4(a) shall be subject to adjustment as follows: The Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics, United States Department of Labor for Los Angeles- Riverside -Orange County, California, all items ( "Index ") in effect on January 1, 2003, shall be the Base Index. For each Rent Adjustment Date, the Index in effect on that Rent Adjustment Date -( "the Adjustment Index ") shall be used for purposes of calculating the amount of adjustment. If the Adjustment Index has increased over the previous year's Adjustment Index (or over the Base Index for the first Rent Adjustment Date),_the rent payable for the following year and until the next Rent Adjustment Date shall be increased by the same percentage as the Adjustment Index bears to the to the previous year's Index. C. In no event shall the annual rent adjustment be less than three percent nor more than seven percent of the previous year's rent. - d. If the Consumer Price Index, as now constituted, compiled, and published shall cease to be compiled and published during the term of this lease, or is calculated on a significantly different basis following the date of this lease, the most comprehensive official Index published that most closely approximates the rate of inflation shall be used for purposes of computing . adjustments under this lease. 5. Maintenance. Lessee shall, at all times, at Lessee's sole cost, maintain the sign, its foundations, structure and electrical in a structurally sound, good, safe, clean and fully operational condition. 6. Taxes. Lessee shall pay, when due, all taxes and assessments assessed upon or attributable to the Installations. Utilities. Lessee shall provide a separate meter for its Installations. 2. 8. Lease Non- Exclusive As To Motel 6 Sim. Lessee's rights in and to the Premises shall be non - exclusive with respect to a Motel 6 pylon sign on the Premises, and the Installations shall be constructed in a manner that will not interfere with the maintenance or obstruct the freeway view of the existing Motel 6 pylon -sign on the Premises. 9. Sim Obstruction /Relocation. Lessee shall be responsible, at Lessee's expense, for keeping any trees on the Property that hinder the freeway visibility of the signs on the Property trimmed or removed. Lessors agree that they, their tenants, agents, employees, or other persons acting on their behalf shall not place or maintain any other object on the Property which would in any way obstruct or impair the view of Lessee's sign. Should all or a portion of the Property be redeveloped by Lessors, resulting in the obstruction or required relocation of the subject Installations, Lessors will not be deemed to be in default of their obligations under this Paragraph 9 if Lessors relocate said Installations, at their expense, to another location on the Property, provided that said location.has equal or better freeway visibility than the Premises. 10. Termination of Lease. If the view of Lessee's signs is substantially obstructed or impaired, or if the value of such signs is diminished by reason of diversion or reduction of vehicular traffic for a period in excess of six months, or if the use of any such signs is prevented or restricted by law, or if for any reason a permit for erection, modification or maintenance of any such signs is refused, terminated or expires, the Lessee may, at its option, terminate the lease upon 30 days written notice to Lessors. 11. Indemnification. Lessee agrees to indemnify and hold Lessors harmless from any liability, loss, cost or damage resulting from the construction and/or use of the Installations and the related rights granted herein. In the event that any action.or proceeding be brought against Lessors, Lessee, upon notice from Lessors, shall defend the Lessors at Lessee's expense by counsel reasonably satisfactory to,Lessors. Lessee shall save the Lessors harmless from all damage to persons or property.by reason of accidents resulting from the Installations on the Property. 12. Extension of Lease. This Lease shall continue in full force and effect for its term, the extended term if applicable, and thereafter for subsequent successive annual terms. This Lease may be terminated at the end of the initial tern by Lessee, or the extended term or a successive term by Lessors or Lessee, upon written notice by the Lessors or Lessee served sixty (60) days before the end of such term. 3 13. Removal Upon Expiration. Any Installations made by Lessee pursuant to this Lease shall at once become a part of the realty and belong to Lessors. On expiration or earlier termination of this lease, Lessee shall surrender the Premises and all improvements thereon to Lessors in good, sanitary, and neat order, condition, and repair, excluding ordinary wear and tear. It is agreed between the parties that upon expiration of the Lease, Lessee shall remain the owner of all advertising sign faces and that, notwithstanding the fact that the same may constitute real estate fixtures, the Lessee shall have the right to remove advertising signs faces at any time during the term of the Lease, and shall have the duty to remove advertising sign faces, and replace the faces with no- copy white plastic faces or provide a white canvas prefabricated cover over its signs, upon expiration of this Lease. 14. Miscellaneous Provisions. a. This lease shall constitute the sole agreements of the parties relating to the lease of the above described Premises. Neither party will be bound by any = statements, warranties, or promises, oral or written, unless such statements, warranties or promises are set forth specifically in this Lease,. b. In the event of any litigation to determine the rights or obligations of either party under this lease or to construe said lease, the prevailing party shall be entitled to such reasonable attorney's fees and all court costs as shall be awarded by a court of competent jurisdiction. C. This lease is binding upon, and inures to the benefit of the heirs, executors, successors, and assigns of Lessee and Lessors. - d. Lessors represents that they are the owner(s) of the Property and have the authority to execute this Leaser e. All rents to be paid pursuant to this Lease, and all notices are to be . forwarded to the undersigned Lessors at the address noted below the Lessors's signature. f Lessee shall perform all work in a professional and workmanlike manner and in accordance with all applicable ordinance, rules and regulations. g. The parties shall execute in recordable form, and cause to be recorded, a memorandum of this lease agreement. 4 It. Should the Installations be completed prior to the date of opening for a business advertised on the sign, the sign faces shall be covered until the uses advertised are open for business. Said cover may advertise the pending opening of the business: "[name of business] coming soon, call " In Witness Whereof, duly authorized representatives of the parties have executed this Agreement on the dates below indicated. Date Lessee City of Rosemead, 8838 E Valley Blvd. Rosemead, CA 91770 By: City Manager Lessors Bernard Perlin and Adele Perlin, trustees under Trust Agreement Dated April 4, 1986, as Restated April 17, 1991, 1044 Montego Drive Los Angeles, CA 90049 Date By: Bernard Perlin Date By: Adele Perlin 5 a , ,e IA •ill � I 3 { .- . ? d�RIGY S[GVIJy [:-Ta tu.T : t I 7' _PO40H� PAWT F; W _ b -x 0 Fuo . it tSe JECT SIGN t ExlsT�uv M -c� SIGN .. EASQMOUT AC{A I� s �.1 •• 'PROPOSED FREEWAY SIGN - POMO"A FReEway $ JAN GA62tEL I LJD, 20CEME1i0I LAIIL, ` I I Yes: Imperial, Taylor, Bruesch, Clark, Vasquez No: None Absent: None Abstain: None The Mayor declared said motion duly carried and so ordered. • CC -G CONSIDERATION OF OPTION TO LEASE AGREEMENT FOR FREEWAY SIGN AT THE 60 FREEWAY AND SAN GABRIEL BOULEVARD Councilman Taylor stated that he will vote No on this item as this is a $1 million cost over the 10 year term. Juan Nunez, 2702 Del Mar, Rosemead, stated that the City should not be paying that amount of money. Mayor Bruesch stated that most communities with freeway frontage are erecting these types of signs. MOTION BY COUNCILMAN' IMPERIAL, SECOND BY MAYOR PRO TEM VASQUEZ that the Council approve the Option to Lease Agreement, authorize the Mayor to execute the document on behalf of the City: and instruct the City Manager to deliver the signed agreement to the lessor with the $7,500.00 option payment. Vote resulted: Yes: Imperial, Bruesch, Clark, Vasquez No: Taylor Absent: None Abstain: None The Mayor declared said motion duly carried and so ordered. V. MATTERS FOR DISCUSSION AND ACTION VI. STATUS REPORTS VII. MATTERS FROM OFFICIALS A. SEPTEMBER 11TH OBSERVANCE Mayor Bruesch opened up discussion regarding the type of observance or tribute the City might want to consider. COMIN:8 -13 -02 Page 46 Recording Requested by: City of Rosemead COPY of Document Recorded Has not been compared with original. Original will is ^e returned when 0 r� r ��j Aen completed. 1701 I Lf.`At1%;01't "c—iS, A"2V After Recordation, Mail to:��® Rosemead City C1eCITY OF ROSEMEAD - - - -- SEP 17 2002 CITY CLERK'S OFFIC7 Space above this line for recorder's use OPTION TO LEASE AGREEMENT Preamble SEP 1022 This Option Agreement is made i 2002, at Rosemead, Califorriia_,by Bernard Perlin and Adele Perlin, trustees unde Trust Agreement Dated April 4, 1986, as Restated April 17, 1991 ( "Optionor ") and the City of Rosemead, a municipal corporation ( "Optionee "). Recitals WHEREAS, Optionors are the owners of certain improved real property referred to in this Agreement as "the:-Property," legally described as: Parcel 4 of Parcel Map 3559 in the City of Rosemead, County of Los Angeles, State of California, as per map recorded in Book 43, Page 15 of Parcel Maps in the Office of the. County Recorder of said County. WHEREAS, Optionee desires to acquire the right to lease a 25 foot by 5 foot portion of the Property (the "Premises ") for the purpose of erecting and maintaining an advertising sign thereon, without becoming obligated to lease the Property, at an agreed rent and under specified terms and conditions; NOW, THEREFORE, it is agreed as follows: Grant of Option 1. Optionors hereby grant to Optionee-the exclusive right to lease the Premises at a price and under the terms and conditions set forth in Exhibit A. Option Period 2. This option will commence on the day and year first above written and will remain in effect until December 31, 2003, at 5:00 p.m. Consideration 3. This option is granted in consideration of Optionee's payment to Optionors of the sum of $7,500.00, receipt of which is hereby acknowledged. Application of Consideration to First Three Months' Rent 4. If this option is exercised in accordance with its terms, then the consideration paid Optionors by Optionee will apply to payment of the first three months' `rent under the lease. Retention of Consideration 5. In the event this option or any extension thereof is not exercised, all sums paid and services rendered to Optionors by Optionee will be retained by Optionors in consideration of the granting of this option. Exercise of Option 6. If Optionee is not in breach of this Agreement it may. exercise this option by execution and tender to Optionors of an instrument, in the form of Exhibit A with the. desired Commencement Date inserted therein, which said Commencement Date shall be the date of exercise of the option. Optionors must then, with due diligence, execute, acknowledge, and deliver to Optionees an executed copy of the.instrument. Automatic Termination 7. If Optionees fail to exercise this option in accordance with its terms and within the option period, then this option and the rights of Optionees will automatically and 2 immediately terminate without notice. Thereafter, Optionees must properly execute, acknowledge, and deliver to Optionors within ten days of a request therefor, a release, quitclaim deed, or any other document required by Optionors or a title insurance company to verify the termination of this Agreement. __. Assignment 8. Optionees may assign this Agreement on condition that the written consent of Optionors is first obtained. Notices 9. Unless otherwise provided in this Agreement, any notice, tender, or delivery to be given under this Agreement by either party to the other may be effected by personal delivery in writing or by registered or certified mail, postage prepaid, return receipt requested, and will be deemed communicated as of mailing. Mailed notices must be addressed as forth below, but each party may change its address by written notice in accordance with this paragraph. To Optionors: Bernard Perlin and Adele Perlin, trustees 1044 Montego Drive, Los Angeles, CA 90049 To Optionees: City of Rosemead 8838 E Valley Blvd. Rosemead, CA 91770 Entire Agreement 10. This instrument and the attached Exhibit A constitute the entire agreement between the parties relating to the option. Any prior agreements, promises, negotiations, or representations not expressly set forth in this Agreement are of no force and effect. Any amendment to this Agreement will be of no force and effect unless it is in writing and signed by the Optionors and Optionees. Attorneys' Fees 11. If any legal action or proceeding arising out of or relating to this Agreement is brought by either party to this Agreement, the prevailing party will be entitled to receive 3 from the other party, in addition to any other relief that may be granted, the reasonable attorneys' fees, costs, and expenses incurred in the action or proceeding by the prevailing party. Binding Effect 12, This Agreement will be binding on and inure to the benefit of the parties to _ this Agreement and their heirs, personal representatives, successors, and assigns. Executed on -/Y—, 2002, at Rosemead, California. M OPTIONORS Bernard Perlin; Trustee Adele Perlin, Trustee CITY- OFROSEMEAD, OPTIONEE Bill Crowe, City Manager Acknowledgment State of California County of Los Angeles notary On July 18, 2002 [date], before me, Nancy P. Carlson, [name and title of officer taking acknowledgment], personally appeared Bernard Perlin [name(s) of person(s) signing instrument], and Adele Perlin [personally known to me or proved to me on the basis of satisfactory evidence] to be the person[s] whose name [s] are [is or are] subscribed to the within instrument and acknowledged to me that they [he or she or they] executed the same in their [his or her or their] authorized capacities [capacity or capacities], and that by their [his or her or their] signature [s] on the instrument the person [s], or the entity upon behalf of which the person [s] acted, executed the instrument. WI S my hand a�d official seal. Signature 072873 dp C E vs rr NOT A' Y YUC!' C.A NIINIA 1" s M} ComR ExuTa Aug. !P,2004 & >cs�osiaro�arm+.ors��v Exhibit A to Option to Lease Agreement Lease Agreement 1. Agreement to Lease. Bernard Perlin and Adele Perlin, trustees undef Trust Agreement Dated April 4, 1986, as Restated April 17, 1991, ( "Lessors ") hereby lease and grant to The City of Rosemead, ( "Lessee ") a portion of that certain real property located in the City of Rosemead, County of Los Angeles, State of California, (the "Property") legally described as: Parcel 4 of Parcel Map 3559 in the City of Rosemead, County of Los Angeles, State of California, as per map recorded in Book 43, Page 15 of Parcel Maps in the Office of the County Recorder of said County. The portion leased consists of that 25 foot by 5 foot area (excepting that area now utilized by the existing "Motel 6" sign) depicted on Exhibit A attached hereto (the "Premises "), together with free access to and upon the same. The installations, as defined in Paragraph 3, may overhang (cantilever beyond) the 25 by 5 foot area provided said overhang is over the Property and the bottom of the sign is at least 70 feet above the ground level existing below said sign. 2. Term. The lease shall be for a term of ten (10) years, commencing on the date of exercise of the option (the "Commencement Date "). Lessors grant Lessee a one -time option to extend this lease for a period of ten years (the "extended term ") from-the original expiration date of this lease. The extended terni of this lease, if any, shall be subject to all of the terms and conditions contained in this lease. To exercise this option, Lessee must not be in default of any of the provisions of this lease and must deliver written notice of its exercise of the option to Lessor a minimum of 120 days prior to expiration of the term of this lease. 3. Use of Premises. The Premises shall be used solely for the purpose of erecting and maintaining an advertising sign thereon, including necessary supporting structures, devices and connections, service ladders and other appurtenances (the "Installations "). The Installations may be used to advertise up to a maximum of four business located and doing businesses in the City of Rosemead. Said Installations shall be constructed at Lessee's expense substantially in conformity with the concept drawing attached hereto as Exhibit B. No business which directly competes with the restaurant, motel or coffee - shop uses on or adjacent to the Property may be advertised on the Installations without the written approval of Lessors. 1 4. Rent a. Lessee shall pay to the Lessors rental in the amount of Thirty Thousand Dollars ($30,000.00) per year, payable monthly in advance on the first day of each month at $2,500.00 per month commencing upon the Commencement Date. b. commencing on January 1, 2004, and continuing on the same day of each year thereafter ( "the Rent Adjustment Date "), the rent set forth in Section 4(a) shall be subject to adjustment as follows: The Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics, United States Department of Labor. for Los Angeles- Riverside -Orange County, California, all items ( "Index ") in effect on January 1, 2003, shall be the Base Index. For each Rent Adjustment Date, the Index in effect on that Rent Adjustment Date ( "the Adjustment Index ") shall be used for purposes of calculating the amount of adjustment. If the Adjustment Index has- increased over the previous year's Adjustment Index (or over the Base Index for the first Rent Adjustment Date),-the rent payable for the following year and until the next Rent Adjustment Date shall be increased by the same percentage as the Adjustment Index bears to the to the previous year's Index. C. In no event shall the annual rent adjustment be less than three percent nor more than seven percent of the previous year's rent. d. If the Consumer Price Index, as now constituted, compiled, and published shall cease to be compiled and published during the term of this lease, or is calculated on a significantly. different basis following the date of this lease, the most comprehensive official Index published that most closely approximates the rate of inflation shall be used for purposes of computing adjustments under this lease. 5. Maintenance. Lessee shall, at all times, at Lessee's sole cost, maintain the sign, its foundations, structure and electrical in a structurally sound, good, safe, clean and fully operational condition. 6. Taxes. Lessee shall pay, when due, all taxes and assessments assessed upon or attributable to the Installations. 7. Utilities. Lessee shall provide a separate meter for its Installations. 2 8. Lease Non - Exclusive As To Motel 6 Sign. Lessee's rights in and to the Premises shall be non - exclusive with respect to a Motel 6 pylon sign on the Premises, and the Installations shall be constructed in a manner that will not interfere with the maintenance or obstruct the freeway view of the existing Motel 6 pylon -sign on the Premises. 9. Sign Obstruction/Relocation. Lessee shall be responsible, at Lessee's expense, for keeping any trees on the Property that hinder the freeway visibility of the signs on the Property trimmed or removed. Lessors agree that they, their tenants, agents, employees, or other persons acting on their behalf shall not place or maintain.any other object on the Property which would in any way obstruct or impair the view of Lessee's sign. Should all or a portion of the Property be redeveloped by Lessors, resulting in the obstruction or required relocation of the subject Installations, Lessors will not be deemed to be in default of their obligations under this Paragraph 9 if Lessors relocate said Installations, at their expense, to another location on the Property, provided that said location has equal or better freeway visibility than the Premises. 10. Termination of Lease. If the view of Lessee's signs is substantially. obstructed or. . impaired, or if the value of such signs is diminished by reason of diversion or reduction of vehicular traffic for a period in excess of six months, or if the use of any such signs is prevented or restricted by law, or if for any reason a permit for erection, modification or maintenance of any such signs is refused, terminated or expires, the Lessee may, at its option, terminate the lease upon 30 days written notice to Lessors. 11. Indemnification. Lessee agrees to indemnify and hold Lessors harmless from any liability, loss, cost or damage resulting from the construction and/or use of the Installations and the related rights granted herein. In the event that any action or proceeding be brought against Lessors, Lessee, upon notice from-Lessors, shall defend the Lessors at Lessee's expense by counsel reasonably satisfactory to Lessors. Lessee shall save the Lessors harmless from all damage to persons or property by reason of accidents resulting from the Installations on the Property. 12. Extension of Lease. This Lease shall continue in full force.and.effect for its term, the extended term if applicable, and thereafter for subsequent successive, annual terms. This Lease may be terminated at the end of the initial term by Lessee, or the extended tern or a successive term by Lessors or Lessee, upon written notice by the Lessors or Lessee served sixty (60) days before the end of such tern. 3 13. Removal Upon Expiration. Any Installations made by Lessee pursuant to this Lease shall at once become a part of the realty and belong to Lessors. On expiration or earlier termination of this lease, Lessee shall surrender the Premises and all improvements thereon to Lessors in good, sanitary, and neat order, condition, and repair, excluding ordinary wear and tear. It is agreed between the parties that upon expiration of the Lease, Lessee shall remain the owner of all advertising sign faces and that, notwithstanding the fact that the same may constitute real estate fixtures, the Lessee shall have the right to remove advertising signs faces at any time during the term of the Lease, ` and shall have the duty to remove advertising sign faces, and replace the faces with no- copy white plastic faces or provide a white canvas prefabricated cover over its signs, upon expiration of this Lease. 14. Miscellaneous Provisions. a. This lease shall constitute the sole, agreements of the parties relating to the lease of the above described Premises. Neither party will be bound by any statements, warranties, or promises, oral or written, unless such statements, 'warranties or promises are set forth specifically in this Lease. b. In the event of any litigation to determine the rights or obligations of either -- party under this lease or to construe said lease, the prevailing party shall be entitled to such reasonable attorney's fees and all court costs as shall be awarded by a court of competent jurisdiction. C. This lease is binding upon, and inures to the benefit of the heirs, executors, successors, and assigns of Lessee and Lessors. d. Lessors represents that they are the owner(s) of the Property and have the authority to execute this Lease. e. All rents to be paid pursuant to this Lease, and all notices are to be forwarded to the undersigned Lessors at the address noted below the °- Lessors's signature. f. Lessee shall perform all work in a professional and workmanlike manner and in accordance with all applicable ordinance, rules and regulations. g. The parties shall execute in recordable form, and cause to be recorded, a memorandum of this lease agreement. 2 h. Should the Installations be completed prior to the date of opening for a business advertised on the sign, the sign faces shall be covered until the uses advertised are open for business. Said cover may advertise the pending opening of the business: "[name of business] coming soon, call " In Witness Whereof, duly authorized representatives of the parties have executed this Agreement on the dates below indicated. k Lessee City of Rosemead,. 8838 E Valley Blvd. - Rosemead, CA 91770 Date By: City Manager. .._ Lessors Bernard Perlin and Adele Perlin, trustees under Trust Agreement Dated April 4, 1986, as Restated April 17, 1991, .1044 Montego. Drive:,., Los Angeles, CA 90049 Date By: Bernard Perlin Date By: Adele Perlin ° Y i I. Elm, r i JQ v A �A „ T02S�o w," Co ` OI.6Z # Fuo . To Re IECT SIGN ExtsT�tK, M -c�' St4n� EPISOMQ.rr At4l I ° ol" 'PROPOSED FREEWAY SIGN romoNa FREEWAY GAeR.IEC. t LJD, ``OCEME1i0� CALtG. ` - Lease Agreement August 7, 2002 Page 2 Last November the City Council authorized the City Manager to negotiate a lease at not to exceed $2,200 per month and in a manner that should the developer not build a store the lease would be null and void. At that time a different sign location on the property was being considered. That location would have yielded a smaller sign face and would have required the City to replace the existing sign for Charley Brown's Restaurant. While the property owner's $2,500 /month asking price is more than the Council anticipated and authorized, the City now will not have to replace the restaurant sign under the attached agreement. More significantly, the City will have a larger sign on which it can advertise up to four businesses within the project area upon terms and for compensation dictated by the City. Nine years ago the Community Development Commission's Counsel represented an auto dealers association that leased a freeway sign location for $5,000 /month. Unless the market has dramatically changed, the Trust's demand for $2,500 /month does not appear to exceed market value. By making this an option to lease, the City will be able to avoid the lease if the developer does not build. By providing for a 10 year term with a 10 year option, the City will be obligated for a shorter term should the developer build, but close at some time in the future. In such an event the City would also have the ability to lease space on the sign to other businesses and mitigate any losses. Once the option agreement is in place staff can commence negotiations with the developer and other businesses with respect to leasing space on the sign, commence engineering the sign structure and commence the CalTrans permitting process. Recommendation Approve the Option to Lease Agreement; authorize the Mayor to execute the document on behalf of the City; and instruct the City Manager to deliver the signed agreement to the lessor with the $7,500.00 option payment. ccstaffleaseagreementfreewaysign .Q Recording Requested by: City of Rosemead After Recordation, Mail to: Rosemead City Clerk Space above this line for recorder's use OPTION TO LEASE AGREEMENT Preamble This Option Agreement is made , 2002, at Rosemead, California ,by Bernard Perlin and Adele Perlin, trustees unde f Trust Agreement Dated April 4, 1986, as Restated April 17, 1991 ( "Optionor ") and the City of Rosemead, a municipal corporation ( "Optionee "). Recitals WHEREAS, Optionors are the owners of certain improved real property referred to in this Agreement as "the Property," legally described as: Parcel 4 of Parcel Map 3559 in the City of Rosemead, County of Los Angeles, State of California, as per map recorded in Book 43, Page 15 of Parcel Maps in the Office of the County Recorder of said County. WHEREAS, Optionee desires to acquire the right to lease a 25 foot by 5 foot portion of the Property (the "Premises ") for the purpose of erecting and maintaining an advertising sign thereon, without becoming obligated to lease the Property, at an agreed rent and under specified terms and conditions; NOW, THEREFORE, it is agreed as follows: Grant of Option 1. Optionors hereby grant to Optionee the exclusive right to lease the Premises at a price and under the terms and conditions set forth in Exhibit A. Option Period 2. This option will commence on the day and year first above written and will remain in effect until December 31, 2003, at 5:00 p.m. Consideration 3. This option is granted in consideration of Optionee's payment to Optionors of the sum of $7,500.00, receipt of which is hereby acknowledged. Application of Consideration to First Three Months' Rent 4. If this option is exercised in accordance with its terms, then the consideration paid Optionors by Optionee will apply to payment of the first three months' rent under the lease. Retention of Consideration 5. In the event this option or any extension thereof is not exercised, all sums paid and services rendered to Optionors by Optionee will be retained by Optionors in consideration of the granting of this option. Exercise of Option 6. If Optionee is not in breach of this Agreement it may exercise this option by execution and tender to Optionors of an instrument in the form of Exhibit A with the desired Commencement Date inserted therein, which said Commencement Date shall be the date of exercise of the option. Optionors must then, with due diligence, execute, acknowledge, and deliver to Optionees an executed copy of the instrument. Automatic Termination 7. If Optionees fail to exercise this option in accordance with its terms and within the option period, then this option and the rights of Optionees will automatically and immediately terminate without notice. Thereafter, Optionees must properly execute, acknowledge, and deliver to Optionors within ten days of a request therefor, a release, quitclaim deed, or any other document required by Optionors or a title insurance company to verify the termination of this Agreement. Assignment 8. Optionees may assign this Agreement on condition that the written consent of Optionors is first obtained. Notices 9. Unless otherwise provided in this Agreement, any notice, tender, or delivery to be given under this Agreement by either party to the other may be effected by personal delivery in writing or by registered or certified mail, postage prepaid, return receipt requested, and will be deemed communicated as of mailing. Mailed notices must be addressed as set forth below, but each party may change its address by written notice in accordance with this paragraph. To Optionors: Bernard Perlin and Adele Perlin, trustees 1044 Montego Drive, Los Angeles, CA 90049 To Optionees: City of Rosemead 8838 E Valley Blvd. Rosemead, CA 91770 Entire Agreement 10. This instrument and the attached Exhibit A constitute the entire agreement between the parties relating to the option. Any prior agreements, promises, negotiations, or representations not expressly set forth in this Agreement are of no force and effect. Any amendment to this Agreement will be of no force and effect unless it is in writing - and signed by the Optionors and Optionees. Attorneys' Fees 11. If any legal action or proceeding arising out of or relating to this Agreement is brought by either party to this Agreement, the prevailing party will be entitled to receive from the other party, in addition to any other relief that may be granted, the reasonable attorneys' fees, costs, and expenses incurred in the action or proceeding by the prevailing UM Binding Effect 12. This Agreement will be binding on and inure to the benefit of the parties to this Agreement and their heirs, personal representatives, successors, and assigns. Executed on rj / , 2002, at Rosemead, California. OPTIONORS Bernard Perlin, Trustee Adele Perlin, Trustee CITY OF ROSEMEAD, OPTIONEE . Bill Crowe, City Manager ff] Acknowledgment State of California County of Los Angeles notary On July 18, 2002 [date], before me, Nancy P. Carlson, [name and title Of officer taking acknowledgment], personally appeared Bernard Perlin_ . " [name(s) of person(s) signing instrument], and Adele Perlin [personally ]mown to me or proved to me on the basis of satisfactory evidence].to be the person[s] whose name [s] are [is or are] subscribed to the within instrument and acknowledged to me that they [he or she or they] executed the same in their [his or her or their] authorized capacities [capacity or capacities], and that by their [his or her or their] signature [s] on the instrument the person [s], or the entity upon behalf of which the person [s] acted, executed the instrument. WI S my hand a}�d official seal. IuIAN Y r t r'U H , Signature l C V .l c��L 3 n rr.p .7fR,3 NU6luL:'_IFVHMA ,, t+4yCemn,.E"pi?ns Aug. I5,Zutl ;wr+ raatro+=as�.aca.avc•a+vm^ 5 Exhibit A to Option to Lease Agreement Lease Agreement 1. Agreement to Lease. Bernard Perlin and Adele Perlin,. trustees under Trust Agreement Dated April 4, 1986, as Restated April 17, 1991, ( "Lessors ") hereby lease and grant to The City of Rosemead, ( "Lessee ") a portion of that certain real property located in the City of Rosemead, County of Los Angeles, State of California, (the "Property") legally described as: Parcel 4 of Parcel Map 3559 in the City of Rosemead, County of Los Angeles, State of California, as per map recorded in Book 43, Page 15 of Parcel Maps in the Office of the County Recorder of said County. The portion leased consists of that 25 foot by 5 foot area (excepting that area now utilized by the existing "Motel 6" sign) depicted on Exhibit A attached hereto (the "Premises "), together with free access to and upon the same. The installations, as defined in Paragraph 3, may overhang (cantilever beyond) the 25 by 5 foot area provided said overhang is over the Property and the bottom of the sign is at least 70 feet above the ground level existing below said sign. 2. Tenn. The lease shall be for a term of ten (10) years, commencing on the date of exercise of the option (the "Commencement Date "). Lessors grant Lessee a one -time option to extend this lease for a period of ten years (the "extended term ") from the original expiration date of this lease. The extended tern of this lease, if any, shall be subject to all of the terms and conditions contained in this lease. To exercise this option, Lessee must not be in default of any of the provisions of this lease and must deliver written notice of its exercise of the option to Lessor a minimum of 120 days prior to expiration of the term of this lease. 3. Use of Premises. The Premises shall be used solely for the purpose of erecting and maintaining an advertising sign thereon, including necessary supporting structures, devices and connections, service ladders and other appurtenances (the "Installations "). The Installations may be used to advertise up to a maximum of four business located and doing businesses in the City of Rosemead. Said Installations shall be constructed at Lessee's expense substantially in conformity with the concept drawing attached hereto as Exhibit B. No business which directly competes with the restaurant, motel or coffee - shop uses on or adjacent to the Property may be advertised on the Installations without the written approval of Lessors. 1 4. Rent a. Lessee shall pay to, the Lessors rental in the amount of Thirty Thousand Dollars ($30,000.00) per year, payable monthly in advance on the first day of each month at $2,500.00 per month commencing upon the Commencement Date. Commencing on January 1, 2004, and continuing on the same day of each year thereafter ( "the Rent Adjustment Date "), the rent set forth in Section 4(a) shall be subject to adjustment as follows: The Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics, United States Department of Labor for Los Angeles- Riverside -Orange County, California, all items ( "Index ") in effect on January 1, 2003, shall be the Base Index. For each Rent Adjustment Date, the Index in effect on that Rent Adjustment Date ( "the Adjustment Index ") shall be used for purposes of calculating the amount of adjustment. If the Adjustment Index has increased over the previous year's Adjustment Index (or over the Base Index for the first Rent Adjustment Date), the rent payable for the following year and until the'next Rent Adjustment Date shall be increased by the same percentage as theAdjustment Index bears to the to the previous year's Index. - C. In no event shall the annual rent adjustment be less than three percent nor more than seven=pe'rcent of the previous year's rent. d. If the Consumer Price Index, as now constituted, compiled, and-published shall cease to be compiled.and published during the term of this lease, or is calculated on a significantly different basis following the date of this lease, the most comprehensive official Index published that most closely approximates the rate of inflation shall be used for purposes of computing adjustments under this lease. 5. Maintenance. Lessee shall, at all times at Lessee's sole cost, maintain the sign, its foundations, structure and electrical in a structurally sound, good, safe, clean and fully operational condition. 6. Taxes. Lessee shall pay, when due, all taxes and assessments assessed upon or attributable to the Installations. Utilities. Lessee shall provide a separate meter for its Installations. 8. Lease Non - Exclusive As To Motel 6 Sigh. Lessee's rights in and to the Premises shall be non - exclusive with respect to a Motel 6 pylon sign on the Premises, and the Installations shall be constructed in a manner that will not interfere with the maintenance or obstruct the freeway view of the existing Motel 6 pylon -sign on the Premises. 9. Sign Obstruction/Relocation. Lessee shall be responsible, at Lessee's expense, for keeping any trees on the Property that hinder the freeway visibility of the signs on the Property trimmed or removed. Lessors agree that they, their tenants, agents, employees, or other persons acting on their behalf shall not place or maintain any other object on the Property which would in any way obstruct or impair the view of Lessee's sign. Should - all or a portion of the Property be redeveloped by Lessors, resulting in the obstruction or required relocation of the subject Installations, Lessors will not.be deemed to be in default of their obligations under this Paragraph 9 if Lessors relocate said Installations, at their expense, to another location on the Property, provided that said location has equal or . better freeway visibility than the Premises. 10. Termination of Lease.. If the view of-Lessee's'signs is. substantially obstructed or impaired; or if the value of such signs is diminished by reason of diversion or reduction of vehicular traffic for a period in excess of six months, or if the use of any such signs is prevented or restricted by law, or if for any reason a permit for erection, modification or maintenance of any such signs is refused, terminated or expires, the Lessee may, at its option, terminate the lease upon 30 days writtennotice -to. Lessors:. ... 11. Indemnification. Lessee agrees to indemnify and hold -Lessors harmless from any liability, loss, cost or damage resulting from the construction and/or use of the Installations and the related rights granted Herein. In the event that any action or proceeding be brought against Lessors, Lessee, upon notice from Lessors, shall defend the Lessors at Lessee's expense by counsel reasonably satisfactory to Lessors. Lessee shall save the Lessors harmless from all damage to persons'or property by reason of accidents resulting from the Installations on the Property. 12. Extension of Lease. This Lease shall continue in full force and effect for its term, the extended term if applicable, and thereafter for subsequent successive annual terms. This Lease may be terminated at the end of the initial term by Lessee, or the extended term or a successive term by Lessors or Lessee, upon written notice by the Lessors or Lessee served sixty (60) days before the end of such term. 3 _ 13. Removal Upon Expiration. Any Installations made by Lessee pursuant to this Lease shall at once become a part of the realty and belong to Lessors. On expiration or earlier termination of this lease, Lessee shall surrender the Premises and all improvements thereon to Lessors in good, sanitary, and neat order, condition, and repair, excluding ordinary wear and tear. It is agreed between the parties that upon expiration of the Lease, Lessee shall remain the owner of all advertising sign faces and that. notwithstanding the fact that the same may constitute real estate-fixtures, the Lessee shall have the right to remove advertising signs faces at any time during the term of the Lease, and shall have the duty to remove advertising sign faces, and replace the faces with no- copy white plastic faces or provide a white canvas prefabricated cover over its signs, upon expiration of this Lease. 14. Miscellaneous Provisions. a. This lease shall constitute the sol' agreements-of the parties relating to the lease of the above described Premises. Neither party will be bound by any statements, warranties, or promises, oral or written, unless such statements, warranties or promises are set forth s ecificall'.`in tfiis'Lease: =`` b. In the event of any litigation to determine the rights or obligations of either party under this lease or to construe said lease, the prevailing party shall be entitled to such reasonable attorney's fees and all court costs as shall be awarded by a court of competent jurisdiction.---: "`- C. This lease is binding upon, and inures to the benefit of the heirs, executors, successors, and assigns of Lessee and Lessors.' d. Lessors represents that they are the-owner(s) of the-Property and have the authority to execute this Lease. e. All rents to be paid pursuant to this Lease, and all noiices are to be forwarded to the undersigned Lessors at the address noted below the Lessors's signature. f. Lessee shall perform all work in a professional and workmanlike manner and in accordance with all applicable ordinance, rules and regulations. g. The parties shall execute in recordable form, and cause to be recorded, a memorandum of this lease agreement. 4 h. Should the Installations be completed prior to the date of opening for a business advertised on the sign, the sign faces shall be covered until the uses advertised are open for business. Said cover may advertise the pending opening of the business: "[name of business] coming soon, call " In Witness Whereof, duly authorized representatives of the parties have executed this Agreement on the dates below indicated. Lessee City of Rosemead, 8838 E Valley Blvd: Rosemead, CA 91770 Date By: City Manager Lessors Bernard Perlin and Adele Perlin, trustees under Trust Agreement Dated April 4, 1986, as.Restated April 17, 1991, - - 1044 Montego Drive Los Angeles, CA 90049 Date By: Bernard Perlin Date By: Adele Perlin - 5 t �� E f• �: � r4 �;a _ I i K 00 J" ol. ' Q� � ♦ w.. v.m wue f tp.. '{� -' � o I i i _ ... _P04044 C J pyLW _ d N N -x U lO II•V =HM , 1 = ,a -- - .tK 1 1 1 I A 0' I 1. I Al ; t �� E f• �: � r4 �;a _ I i K 00 J" ol. ' Q� � ♦ w.. v.m wue f tp.. '{� -' � o I i i _ ... _P04044 C J pyLW _ d N N -x U lO II•V =HM , 1 = ,a 1 1 A 1. ; 00 J" ol. ' Q� � ♦ w.. v.m wue f tp.. '{� -' � o I i i _ ... _P04044 C J pyLW _ d N N -x U w To 2SIO �..'� IA UUFC7 "^ IEG I SIGN E Exls•r�uv M -c, SIGN I o�6t t Fw�o Tb RC wi�uia ilri i.Cl . "-PROPOSED FREEWAY SIGN Yomonia FREk'WAY 2� �QN (yA32lEC. I��JD, 20CEMFAO, L.RI.ICr ` I ='v'.i,. .— L 1 / •I THE THEASURER OF THE 8838 EAST VALLEY BLVD. s CITY OF ROSEMEAD ROSEMEAD. CALIFORNIA DESCRIPTION LEASE AGREEMENT /60 FWY SIGN 626 -288 -6671 4200 - 6475 -01 033753 AMOUNT ,500.00 v THE TREASURER OF THE NOT NEGOTIABLE SIX MONTHS FROM DATE OF CHECK " o- CITY OF ROSEMEAD UNITED CALIFORNIA 03.516 0 3 8 7 5 3' 8838 EAST VALLEY BOULEVARD - BANK - � —` 1220 _ - - " " "' ROSEMEAD, CALIFORNIA. 91770 ROSEMEAD. C6RYO ;. 00 _ SOW EAST Y BLVD 91]]0 $ 626 - 2886671 - - - DATE - PAY EXACTLY ' 08 -14 -2002 7,500.00 * * * * * * * * *i* PAY TO THE ORDER-OF: BERNARD PERLIN AND - ADELE. PERLIN, TRUSTEES , 1044 MONTEGO DR." :LOS ANGELES, CA 90049 u•0387S311, 13122003'S161:- ,26 12-0 l6 704• MAYOR: ROBERT W. BRUESCH MAYOR PRO TEM: JOE VASQUEZ COUNCILMEMBERS: MARGARET CLARK JAY T. IMPERIAL GARY A. TAYLOR August 14, 2002 Bernard and Adele Perlin, Trustees 1044 Montego Drive Los Angeles, CA 90049 Dear Bernard and Adele Perlin: �if�Poscmcad 8838 E. VALLEY BOULEVARD • P.O. BOX 399 ROSEMEAD, CALIFORNIA 91770 TELEPHONE (626) 569 -2100 FAX (626) 307 -9218 Attached is your copy of the executed Option to Lease Agreement along with a City of Rosemead check in the amount of $7,500.00. The second executed Agreement will be submitted to the Los Angeles County Registrar/Recorder's office for recordation. After recordation, a copy will be forwarded to you. If you have any questions, please give me a call at 626/569 - 2171. Sincerely, NANCY VALDERRAMA City Clerk City of Rosemead Attch. Recording Requested by: City of Rosemead After Recordation, Mail to: Rosemead City Clerk Space above this line for recorder's use OPTION TO LEASE AGREEMENT Preamble This Option Agreement is made . / Y , 2002, at Rosemead, California by Bernard Perlin and Adele Perlin, trustees under Trust Agreement Dated April 4, 1986, as Restated April 17, 1991 ( "Optionor ") and the City of Rosemead, a municipal corporation ( "Optionee "). Recitals WHEREAS, Optionors are the owners of certain improved real property referred to in this Agreement as "the Property," legally described as: Parcel 4 of Parcel Map 3559 in the City of Rosemead, County of Los Angeles, State of California, as per map recorded in Book 43, Page 15 of Parcel Maps in the Office of the County Recorder of said County. WHEREAS, Optionee desires to acquire the right to lease a 25 foot by 5 foot portion of the Property (the "Premises ") for the purpose of erecting and maintaining an advertising sign thereon, without becoming obligated to lease the Property, at an agreed rent and under specified terms and conditions; NOW, THEREFORE, it is agreed as follows: Grant of Option 1. Optionors hereby grant to Optionee the exclusive right to lease the Premises at a price and under the terms and conditions set forth in Exhibit A. Option Period 2. This option will commence on the day and year first above written and will remain in effect until December 31, 2003, at 5:00 p.m. Consideration 3. This option is granted in consideration of Optionee's payment to Optionors of the sum of $7,500.00, receipt of which is hereby acknowledged. Application of Consideration to First Three Months' Rent 4. If this option is exercised in accordance with its terms, then the consideration paid Optionors by Optionee will apply to payment of the first three months' rent under the lease. -- Retention of Consideration 5. In the event this option or any extension thereof is not exercised, all sums paid and services rendered to Optionors by Optionee will be retained by Optionors in consideration of the granting of this option. Exercise of Option 6. If Optionee is not in breach of this Agreement it may exercise this option by execution and tender to Optionors of an instrument in the form of Exhibit A with the desired Commencement Date inserted therein, which said Commencement Date shall be the date of exercise of the option. Optionors must then, with due diligence, execute, acknowledge, and deliver to Optionees an executed copy of the instrument. Automatic Termination 7. If Optionees fail to exercise this option in accordance with its terms and within the option period, then this option and the rights of Optionees will automatically and 2 immediately terminate without notice. Thereafter, Optionees must properly execute, acknowledge, and deliver to Optionors within ten days of a request therefor, a release, quitclaim deed, or any other document required by Optionors or a title insurance company to verify the termination of this Agreement. Assignment 8. Optionees may assign this Agreement on condition that the written consent of Optionors is first obtained. Notices 9. Unless otherwise provided in this Agreement, any notice, tender, or delivery to be given under this Agreement by either party to the other may be effected by personal delivery in writing or by registered or certified mail, postage prepaid, return receipt requested, and will be deemed communicated as of mailing. Mailed notices must be addressed as set forth below, but each party may change its address by written notice in accordance with this paragraph. To Optionors: Bernard Perlin and Adele Perlin, trustees ..1044 Montego Drive, Los Angeles, CA 90049 To Option_ees: City of Rosemead 8838 E Valley Blvd. Rosemead, CA 91770 Entire Agreement 10. This instrument and the attached Exhibit ,A constitute the entire agreement between the parties relating to the option. Any prior agreements, promises, negotiations, or representations not expressly set forth in this Agreement are of no force and effect. Any amendment to this Agreement will be of no force and effect unless it is in writing and signed by the Optionors and Optionees. Attorneys' Fees 11. If any legal action or proceeding arising out of or relating to this Agreement is brought by either party to this Agreement, the prevailing party will be entitled to receive from the other party, in addition to any other relief that may be granted, the reasonable attorneys' fees, costs, and expenses incurred in the action or proceeding by the prevailing party. Binding Effect 12. This Agreement will be binding on and inure to the benefit of the parties to this Agreement and their heirs, personal representatives, successors, and assigns. Executed on 2002, at Rosemead, California. OPTIONORS Bernard Perlin, Trustee Adele Perlin, Trustee CITY OF ROSEMEAD, OPTIONEE - -- Bill Crowe, City Manager n Acknowledgment State of California County of Los Angeles On July 18, 2002 [date], before me, Nancy P. Carlson [name and title of officer taking acknowledgment], personally appeared Bernard Perlin and [name(s) of person(s) signing instrument], Adele Perlin [personally known to me or proved to me on the basis of satisfactory evidence] to be the person[s] whose name [s] are [is or are] subscribed to the within instrument and acknowledged to me that they [he or she or they] executed the same in their [his or her or their] authorized capacities. [capacity or capacities], and that by their [his or her or their] signature [s] on the instrument the person [s], or the entity upon behalf of which the person [s] acted, executed the instrument. WITNESS, my hand and facial seal Y K. C1'1Ry�0N , Signature ' C i�� s r "r � �� f �,s !� I�•2C73 y L; i.4r:YN UIC U.UkORNIA 4 ? Las fwgeles Cow;ty P`It'TiL'4R°P':RC °b�' W.M1ayy WS!`Y'4.0i ^!$Yi`4W'ti't0.^�'. Exhibit A to Option to Lease Agreement Lease Agreement 1. Agreement to Lease. Bernard Perlin and Adele Perlin, trustees undef Trust Agreement Dated April 4, 1986, as Restated April 17,"1991, ( "Lessors ") hereby 1 -ease and grant to The City of Rosemead, ( "Lessee ") a portion of that certain real property located in the City of Rosemead, County of Los Angeles, State of California, (the "Property") legally described as: Parcel 4 of Parcel Map 3559 in the City of Rosemead, County of Los Angeles, State of California, as per map'recorded in Book 43, Page 15 of Parcel Maps in the Office of the County Recorder of said County. The portion leased consists of that 25 foot by 5 foot area (excepting that area now utilized by the existing "Motel 6" sign) depicted on Exhibit A attached hereto (the "Premises "), together with free access to and upon the same. The installations, as defined in Paragraph 3, may overhang (cantilever beyond) the 25 by 5 foot area provided said overhang is over the Property and the bottom of the sign is at least 70 feet above the ground level existing below said sign. 2. Term. The lease shall be for a term of ten (10) years, commencing on the date of exercise of the option (the "Commencement Date "). Lessors grant Lessee a one -time option to extend this lease for a period of ten years (the "extended term ") from the original expiration date of this lease. The extended term of this lease, if any, shall be subject to all of the terms and conditions contained in this lease. To exercise this option, Lessee must not be in default of any of the provisions of this lease and must deliver written notice of its exercise of the option to Lessor a minimum of 120 days prior to expiration of the term of this lease. 3. Use of Premises. The Premises shall be used solely for the purpose of erecting and maintaining an advertising sign thereon, including necessary supporting structures, devices and connections, service ladders and other appurtenances (the "Installations "). The Installations may be used to advertise up to a maximum of four business located and doing businesses in the City of Rosemead. Said Installations shall be constructed at Lessee's expense substantially in conformity with the concept drawing attached hereto as Exhibit B. No business which directly competes with the restaurant, motel or coffee - shop uses on or adjacent to the Property may be advertised on the Installations without the written approval of Lessors. 1 4. Rent a. Lessee shall pay to the Lessors rental in the amount of Thirty Thousand Dollars ($30,000.00) per year, payable monthly in advance on the first day of each month at $2,500.00 per month commencing upon the Commencement Date. b. Commencing on January 1, 2004, and continuing on-the-same day of each year thereafter ( "the Rent Adjustment Date "), the rent set forth in Section 4(a) shall be subject to adjustment as follows: The Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics, United States Department of Labor for Los Angeles- Riverside -Orange County, California, all items ( "Index ") in effect on January 1, 2003, shall be the Base Index. For each Rent Adjustment Date, the Index in effect on that Rent Adjustment Date ( "the Adjustment Index ") shall be used for purposes of calculating the amount of adjustment.. If the Adjustment Index has increased over the previous year's Adjustment Index .(or over the Base Index for the first Rent Adjustment Date), the rent.payable for the following year and until the next Rent Adjustment Date:shall.be increased by the same percentage as the Adjustment Index bears to the to the previous year's Index. C. In no event shall the annual rent adjustment be, less than three percent nor. more than seven percent of the previous year's rent. d. If the Consumer Price Index, as now constituted, compiled,-and published shall cease to be compiled and published during the term of this lease, or is calculated on a significantly different basis following the date of this lease, the most comprehensive official Index published that most closely approximates the rate of inflation shall be used for purposes of computing adjustments under this lease. 5. Maintenance. Lessee shall, at all times, at Lessee's sole cost, maintain the sign, its foundations, structure and electrical in a structurally sound, good, safe, clean and fully operational condition. 6. Taxes. Lessee shall pay, when due, all taxes and assessments assessed upon or attributable to the Installations. Utilities. Lessee shall provide a separate meter for its Installations. r 8. Lease Non - Exclusive As To Motel 6 Sign. Lessee's rights in and to the Premises shall be non- exclusive with respect to a Motel 6 pylon sign on the Premises, and the Installations shall be constructed in a manner that will not interfere with the maintenance or obstruct the freeway view of the existing Motel 6 pylon -sign on the Premises. 9. Sign Obstruction/Relocation. Lessee shall be responsible, at Lessee's expense, for keeping any trees on the Property that hinder the freeway visibility of the signs on the Property trimmed or removed. Lessors agree that they, their tenants, agents, employees, or other persons acting on their behalf shall not place or maintain any other object on the Property which would in any way obstruct or impair the view of Lessee's sign. Should all or a portion of the Property be redeveloped by Lessors, resulting in the obstruction or required relocation of the subject Installations, Lessors will not be deemed to be in default of their obligations under this Paragraph 9 if Lessors relocate said Installations, at their expense, to another location on the Property, provided that said location has equal.or better freeway visibility than the Premises. 10. Termination of Lease. If the view of Lessee's signs is substantially obstructed or ;. impaired, or if the value of such signs is diminished by reason of diversion or reduction of vehicular traffic for a period in excess of six months, or if the use of any such signs is prevented or restricted by law, or if for any reason a permit for erection, modification or maintenance of any such signs is refused, terminated or expires, the Lessee may, at its option, terminate the lease upon 30 days written notice to Lessors. 11. Indemnification. Lessee agrees to indemnify and hold Lessors harmless from any liability, loss, cost or damage resulting from the construction and /or use of the. _ Installations and the related rights granted herein. In the event that any action or proceeding be brought against Lessors, Lessee, upon notice from Lessors, shall defend . the Lessors at Lessee's expense by counsel reasonably satisfactory to Lessors. Lessee shall save the Lessors harmless from all damage to persons or property by reason of accidents resulting from the Installations'on the Property. 12. Extension of Lease. This Lease shall continue in full force and effect for its term, the extended term if applicable, and thereafter for subsequent successive annual terms. This Lease may be terminated at the end of the initial term by Lessee, or the extended term or a successive term by Lessors or Lessee, upon written notice by the Lessors or Lessee served sixty (60) days before the end of such term. 13. Removal Upon Expiration. Any Installations made by Lessee pursuant to this Lease shall at once become a part of the realty and belong to Lessors. On expiration or earlier termination of this lease, Lessee shall surrender the Premises and all improvements thereon to Lessors in good, sanitary, and neat order, condition, and repair, excluding ordinary wear and tear. It is agreed between the parties that upon expiration of the Lease, Lessee shall remain the owner of all advertising sign faces and that, notwithstanding the-fact that the same may constitute real estate fixtures, the Lessee shall have the right to remove advertising signs faces at any time during the term of the Lease, and shall have the duty to remove advertising sign faces, and replace the faces with no- copy white plastic faces or provide a white canvas prefabricated cover over its signs, upon expiration of this Lease. 14. Miscellaneous- Provisions. a. This lease shall constitute the sole agreements of the parties relating to the lease of the .above described Premises. Neither party will be bound by any statements, warranties, or promises, oral or written, unless such statements, warranties or promises are set forth specifically in this Lease.. b. In the.event of any litigation to determine the rights or obligations of either party under this lease or to construe said lease, the prevailing party shall be entitled to such reasonable attorney's fees and all court costs as shall be awarded by a court of competent jurisdiction. C. This lease is binding upon, and inures to the benefit of the heirs, executors, successors, and assigns of Lessee and Lessors. d. Lessors represents that they are the owner(s) of the Property and have the authority to execute this Lease. e. All rents to be paid pursuant to this Lease, and all notices are to be forwarded to the undersigned Lessors at the address noted below the Lessors's signature. f Lessee shall perform all work in a professional and workmanlike manner and in accordance with all applicable ordinance, rules and regulations. g. The parties shall execute in recordable form, and cause to be recorded, memorandum of this lease agreement. 0 h. Should the Installations be completed prior to the date of opening for a business advertised on the sign, the sign faces shall be covered until the uses advertised are open for business. Said cover may advertise the pending opening of the business: "[name of business] coming soon, call " In Witness Whereof, duly- authorized.representatives of the parties have executed this Agreement on the dates below indicated. Lessee City of Rosemead, 8838 E Valley Blvd. Rosemead, CA 91770 Date By: City Manager Lessors Bernard Perlin and Adele Perlin, trustees under Trust Agreement Dated April 4, 1986, as Restated April 17, 1991, 1044 Montego Drive Los Angeles, CA 90049 Date By: Bernard Perlin Date 5 By: Adele Perlin 3 � i a Q �JQI SUBJECT SIGN *7o't . Ex�sT�uc. M -c,' - . I SIC z Fuc . To Re w«Wia T,x'Lc". c -Mama UT 'PROPOSED FREEWAY SIGN - %kvmor�la FREEWAY l Atj (yARRIEC �L�JD, 20CEME11ol l AIIC• ` 'K I lisirs I C;F provided) q� MAI F N; roomerstic, Mail Only; No Insurance Coverage L A U E -J J.j C3 W A. Signature CI rij Postage $ Agent M I X ❑ AddnessiIEL —0 Certil Fee Postmark ru se B Received by (Printed Name) C. Date of Delivery Here P,bmi Receipt F. I "el (Endorsement Required) C3 Ile"V41 D. Is delivery address different from item 1? ❑ Yes R"sontitod = (Endorsement 8 UZ if YES, enter delivery address below: ❑ No C3 $ Total Postage & Fees Ind M Sent Toj'�9 ------ ---- ------------------ - W- 0 — ; ----- ---- ------- - - -- -- 16�q -------------- (::3 orP0BoxN0 C3 -- -- --- G% ------ Service Type It ❑Express Mail Certified Mail - If' T3. Registered ❑ Return Receipt for Merchandise ❑ insured Mail ❑ C.C.D. Yes 4. Restricted Delivery?�(Extra Fee) ❑ Yes Pesaro a D I'v (Extra se) 2. Article Number 7001 0320 0001 2632 0760 (Transfer from se,, PS Form 3811, August 2001 Domestic Return Receipt 10259SO4-M.0381 "-777777777;-77r7'7-777777777777�; 0 O CD Ir CD I. 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"@.•i]^ -3.��, '�`•E'S ¢�++�A"; � �i uw., Y^ -d -�-. n`[�k 3.n d �' •.t kt 4f' Y Ays` x w wx i. �� w.?c J"5 �r''i. ? v s x y s s 1' .,.ri k'ts�+�,s ,t` ,a x- r• i s r'-4 ' 5 f 2S s ,s L'` +r K`• ..,6.� w r ii`i _ t r zr :n r fro ✓ttt xl v" S �%t�Y }ss`.7.1paa -� r � .:( f �!� .jA a «" `• ( r ,, 4 + ; .:n& t 7f i d s`�`'+,•.' ( s' r f N « i >.. t� .� •L_ __�bv��ca.�" -f �3�^'�^ u�� ._� . "..L. �.��. w:'..J"Jf _ c.. �t 1 L.�� , a. _ rrt b f _ T rr.. F U Y .i(«v '+fYYfv n yr 3�[ t ^, } t t. r" .FL, f•„ r S + 7a* � •'`F 1 o d a , n s,n s+r.^' �,�ap � y °t-�. A r rr` .h t :.,� ..� _ _.,. ��..._.�._�..: ;_.�_...___ ^' `- �� -�..- r n•. -'•`' +� - �..,... r_,.:... iw+. �.J..:. � :.�.e.as�ix�.;�..w.,...r..,:_._ � '• =� ....M ....i.... - .,= ...�..,�... %mot MAYOR: ROBERT W. BRUESCH MAYOR PRO TEM: JOE VASQUEZ COUNCILMEMBERS: MARGARETCLARK JAY T. IMPERIAL GARYA.TAYLOR August 15, 2002 scff2cad 8838 E. VALLEY BOULEVARD • P.O. BOX 399 ROSEMEAD, CALIFORNIA 91770 TELEPHONE (626) 569 -2100 FAX (626) 307 -9218 D.A.R Los Angeles County Registrar Recorder /County Clerk P.O. box 115 Los Angeles, CA 90053 -0115 DUt- 'L�Li -1 Attached please find an original Option to Lease Agreement and one copy with a self - addressed, stamped envelope. Please mail the copy back with the document number. Please return the original when recordation is completed. If you have any questions, please call me at.626 569 -2171. Thank you. /f NANCY VALDERRAMA, CMC City Clerk. City of Rosemead Attachments CIk:123