HomeMy WebLinkAboutSS2 - Balboa Theater Rehabilitation ProjectSTUDY SESSION AGENDA ITEM z
TO: Mayor and City Council
FROM: Sharon Wood, Assistant City Manager
SUBJECT: Balboa Theater Rehabilitation Project
Background
The Balboa Performing Arts Theater Foundation requested City assistance with
acquisition ($550,000) and renovation (5500,000) of the Balboa Theater in February
1998. After an appraisal, much City Council discussion, and negotiation with the
Foundation and the then owner of the Theater, the City purchased the Theater in October
1998, for the appraised value of S480,000, using Community Development Block Grant
funds.
The City entered into a lease with the Foundation in November 1998. The lease
(attached) allows the Foundation to occupy the Theater with no rent payments to the City.
The Foundation is required to make improvements to the Theater, including seismic
retrofit and renovation, required of a "first class community Theater." Renovation plans
were required to be prepared and submitted to the City in phases. Conceptual Design
Plans and Design Development Plans were to be reviewed by the City Council
Committee to Promote Revitalization of Our Peninsula (PROP), and Final Plans and
Specifications were to be submitted along with applications for building permits within
one year from the effective date of the lease. The Foundation is required to begin
construction within 60 days of approval of building permits, and complete construction
one year later.
The lease has been amended three times. The first amendment changed the amount of
comprehensive general liability insurance required. The second amendment provided
that the Guidelines for the Rehabilitation of Historic Structures published by the
Secretary of the Interior apply only to the exterior of the Theater. The third amendment
removes reference to these Guidelines, and requires that the improvements return the
exterior design and treatment of the front facade as close as possible to its original
appearance.
The latter two amendments were needed to accommodate the extensive rehabilitation
proposed by the Foundation to satisfy the lease requirement that that the improvements
be consistent with a first class community theater. In trying to meet this requirement, the
Foundation decided to use stadium seating, provide dressing rooms, expand the size of
the lobby and increase the number of restrooms. Because the existing Theater building
has insufficient space for all these features, the Foundation explored two options:
purchasing the building next door (111 Main Street), and expanding the Theater
rehabilitation to include demolishing the side and rear walls, excavating for a basement,
and rebuilding the side and rear walls and cladding them with original brick veneer.
Initially, the Foundation believed that the owner of the adjacent property was not
interested in selling. The City and the Foundation later learned that the property was
listed for $1.6 million. At that time, the cost estimate for constructing the basement was
$300,000, and the Foundation decided to proceed with that plan rather than spend the
time and money to redesign the project in a way that would make it more expensive
PROP approved Conceptual Design Plans in November 1999 and Design Development
Plans in April 2000. The City Council granted one extension of six months for the
submission of building permit applications, changing that deadline from November 1999
to May 2000. The Foundation did meet that deadline, and the plans are approximately
70% approved by the Building Department.
Discussion
The most difficult component of the Theater design for the Building Department to
approve is the basement. Shoring and dewatering must be planned properly so that
construction will not cause damage to adjacent buildings, the basement is kept dry and
usable, and the water is discharged properly. Such work can be done safely if designed
properly, but as owner of the Theater property, the City is being especially cautious about
protecting the adjacent properties from damage.
As the Foundation has done more detailed plans for the renovation and consulted with the
Building Department on dewatering and shoring concerns, the cost estimate for this part
of the project has increased to $1.7 million. This high cost, combined with concerns
about the basement construction, made it reasonable to consider acquisition of the
adjacent property.
1 I I Main Street
The property owner has an appraisal of $1.6 million, and that is her asking price. The
City also had the property appraised, and our appraiser's opinion of value is $1.4 million.
The building at I 1 I Main Street occupies three parcels of land (each 25 x 95 feet) shown
on the attached map. The first floor has three retail tenants, Orange Julius, Toys in the
Attic and J.J.'s Hair Cutting. The second floor has six apartments. There are eight
parking spaces off the alley in the rear.
2
The Foundation needs only the parcel closest to the Theater for its dressing rooms,
restrooms and offices. The building is constructed of reinforced concrete. It could be cut
in two, and the two lots at the comer of Main and Balboa could be sold to another party
to recoup some of the acquisition costs. Cutting the building likely would require
relocating a stairway and some bathrooms, which could result in the loss of one
apartment unit. The Building Director believes that the structure could be cut in two, but
cannot estimate the cost without more extensive study.
Financial Status of Theater Project
The City's contribution to the project so far is approximately $500,000, including
acquisition of the property and payment of plan check fees as provided in the lease.
Community Development Block Grant (CDBG) has been the funding source for all
expenditures. These funds are not available to purchase the adjacent property, because
the City has committed them to the Balboa Village streetscape improvement project.
Staff has not explored other funding sources.
The current cost estimate for the Theater renovation is $5.5 million. The Foundation has
received 52.2 million in donations, and has spent almost $500,000 on seismic retrofit,
design and constriction management. After these project costs and ongoing operational
costs, their fund balance is $1.2 million. The Foundation Board believes that their
fundraising would be more successful if the project were under construction.
Options
The City Council may wish to consider additional City participation in the Theater
project. Staff has outlined some options to help the Council's discussion of this matter.
1. Make no additional City investment in the project, but amend the lease to provide
additional time for construction to begin and to prohibit any demolition until the
Foundation has sufficient fmds to construct the basement and the new shell
building.
While this option would give the Foundation more time to raise the money needed
to complete the project, it would continue their heavy reliance on donations. If
fundraising is not successful, the City eventually would need to terminate the
lease and make decisions about the Theater's fixture.
Z. Direct staff to negotiate for purchase of the property at 111 Main Street. If
successful, amend the lease to (a) include the additional property, (b) provide for
cost sharing and project management if the building is to be divided, and (c) add
deadlines for specific milestones in the fundraising, design, permitting and
construction processes.
This option could serve as a catalyst for progress on renovation and increase
fundraising potential. Expanding the Theater to the side instead of into a
3
basement would be a less complicated construction project. However, cutting the
adjacent building in two and selling the portion not used by the Theater has
complexities of its own. Other concerns with this option include the investment
of more City money, and potential City responsibilities in relocating existing
tenants.
3. Direct the Foundation to negotiate with the owner of 111 Main Street to lease a
tenant space.
Staff recently learned from the listing real estate agent that the commercial tenant
closest to the Theater, Toys in the Attic, is leaving, making that space (1,438
square feet) available. This might provide offices for the Foundation, but it could
not satisfy their dressing room and restroom space needs.
4. Direct the Foundation to redesign the project within the existing Theater building.
This option would reduce construction costs by at least $1.7 million, eliminate the
potential for damage to adjacent properties, and preserve more of the historic
Theater. On the other hand, this option would not allow for live performances,
and the likelihood of success for a small film house may be limited (especially
since Newport Beach also has the Lido and Port Theaters).
5. Terminate the Foundation's lease.
t
The lease requires the Foundation to "diligently process any corrections and
changes to the submittals that are necessary to comply with State and local
law..." If the City Council is not satisfied that the Foundation has complied with
this provision of the lease, the City could invoke the default provisions, up to and
including termination. This would have very serious consequences for the
Foundation, which has raised over $2 million for the Theater project. Such an
action would return the Theater to the City, which would need to make decisions
about its future.
13
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RECORDING REQUESTED AND
WHEN R�9O. @ED RA,i?S �N TO:
City Clerk's Office
City of'NjyvO( rt,B6eh', ';
3300 Newdoit Boufevard"
P.O. Box 1768
Newport Beach, CA 92658 -8915
Space above this
Recorcea in the county of orange, caiifornia
Oar L. Granville, Clerk /Recorder
I �11111111111�lill�IIIIIIIIJIMIIIII No Fee
19996066742 1;10pm 01/29/99
005 11011852 11 19
L02 43 6.00 126.00 0.00 0.00 0.00 129.00
for Recorder's use only.
Exempt Recording Request per Government Code 6103
Contract No. 3248
LEASE
BY AND BETWEEN
THE CITY OF NEWPORT BEACH
AND
THE BALBOA PERFORMING ARTS
THEATRE FOUNDATION
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Table of Contents
Page
ARTICLE 2
LEASE OF PROPERTY ........................................... ...............................
2
2.1
Lease of Propertv ...................................................... ...............................
3
2.2
Condition of Title ....................................................... ...............................
3
ARTICLE 3
POSSESSION OF PROPERTY ................................ ...............................
3
3.1
Quiet Employment ..................................................... ...............................
3
3.2
Condition of Prooerty ................................................ ...............................
3
3.3
Ownership of Improvements ..................................... ...............................
3
3.4
Surrender of Property ................................................ ...............................
4
3.4.1 .......................................................................... ...............................
4
3. 4. 2 .......................................................................... ...............................
4
3. 4. 3 .......................................................................... ...............................
4
ARTICLE 4
TERWOPTION TO PURCHASE .............................. ...............................
4
4.1
Duration and Commencement ...............................
4
4.2
•
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Option to Extend ....................................................... ...............................
4
4.3
Option to Purchase ................................................... ...............................
4
4.3.1 .......................................................................... ...............................
5
4. 3. 2 .......................................................................... ...............................
5
4. 3. 3 .......................................................................... ...............................
5
4. 3. 4 .......................................................................... ...............................
5
4. 3. 5 .......................................................................... ...............................
5
4.4
Option - Purchase Price ............................................ ...............................
5
4.5
Right of First Refusal ................................................. ...............................
5
ARTICLE 6 CONTRIBUTIONS FUND ......................................... ............................... 6
9
Page
ARTICLE 7
ANNUAL BUDGET /OPERATION AND MARKETING PLAN . ...............
6
7.1
Budget/ Timing ........................................................... ...............................
6
7.1.1 Initial Budget ................................................... ...............................
6 •
7.1.2 Proposed Revision ......................................... ...............................
7
7.1:3 Year End Financial Statement ........................ ...............................
7
7.1.3 Proposed Revision ......................................... ...............................
7
7.1.4 Year End Financial Statement ........................ ...............................
7
7.2
Contents of Budget ................................................... ...............................
7
7.3
Operations and Marketing Plan ................................. ...............................
7
7.4
Records ..................................................................... ...............................
8
7.5
Audit .......................................................................... ...............................
8
ARTICLE8
USE OF PROPERTY ................................................. ...............................
8
8.1
Permitted Use ............................................................ ...............................
8
8.2
Performances/ Frequency ............................................. ..............................8
8.2.1 ........................................................................ ...............................
9
8.2.2 ........................................................................ ...............................
9
8.2.3 ........................................................................ ...............................
9
8.3
Program Standards .................................................... ...............................
9
8.3.1 ........................................................................ ...............................
9
8.3.2 ........................................................................ ...............................
9
8.3.3 ........................................................................ ...............................
9
8.3.4 ........................................................................ ...............................
9
8.4
Cooperation ............................................................... ...............................
9
8.5
Change of Use ......................................................... ...............................
10 •
8.6
Compliance with Laws ............................................. ...............................
10
8.7
Zoning and Planning ................................................ ...............................
10
8.8
Nondiscrimination ..................................................... ...............................
10
8.8.1 ...................................................................... ...............................
10
8.8.2 ...................................................................... ...............................
10
8.8.3 ...................................................................... ...............................
11
ARTICLE 9
REQUIRED IMPROVEMENTS ................................ ...............................
11
9.1
Lessee's Obligations ................................................ ...............................
11
9.2
Seismic Retrofit/ Remediation ................................... ...............................
11
9.3
Conceptual Design Plans ......................................... ...............................
12
9.4
Design Development Plan ........................................ ...............................
12
9.5
Final Plans and Specifications ................................. ...............................
13
9.6
Building Permits ....................................................... ...............................
13
9.7
Construction of Required Improvements .................. ...............................
13
9.8
General Requirements ............................................. ...............................
14
9.8.1 ......................................................................... ...............................
14
9. 8. 2 ......................................................................... ...............................
14
9.9
Extensions ............................................................... ...............................
14
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Page
ARTICLE 10 REPAIRS AND MAINTENANCE .................. ............................... 14
• ARTICLE 11 STATUS AND MANAGEMENT OF LESSEE .............................. 15
11.1 Nonprofit Status ....................................................... ............................... 15
11.2 Executive Committee and Advisory Committee ....... ............................... 15
11.3 Employment of Staff ................................................. ............................... 15
ARTICLE 12 ALTERATIONS ............................................. ............................... 16
12.1 Written Consent ....................................................... ............................... 16
12.2 Notice of Non - responsibility ..................................... ............................... 16
ARTICLE 13 PAYMENT OF UTILITIES, TAXES, CHARGES AND FEES ....... 16
13.1 Public and Private Utility Services ............................ ............................... 16
13.2 Taxes, Assessments, Fees and Charges ................ ............................... 16
13.3 Proof of Payment ..................................................... ............................... 17
13.4 Payment by Lessor .................................................. ............................... 17
13.5 Property Taxes not Valid .......................................... ............................... 17
13.6 Notice of Possessory Interest; Payment of Taxes and Assessments
on Value of Entire Lease Premises .......................... ............................... 17
ARTICLE 14
LIENS ............................................................ ...............................
17
14.1
Indemnification ......................................................... ...............................
17
14.2
Satisfaction of Liens ................................................. ...............................
18
• 14.3
14.4
Notice to Lessor ....................................................... ...............................
Notice of Non- Responsibility
18
18
.................................... ...............................
ARTICLE 15
INDEMNIFICATION ...................................... ...............................
18
15.1
Indemni ................................................................. ...............................
18
15.2
CERCLA Liability ...................................................... ...............................
19
15.3
Expense of Proceedings .......................................... ...............................
19
15.4
Release .................................................................... ...............................
19
15.5
Waiver of California Civil Code Section 1542 ........... ...............................
19
15.6
Definition of Hazardous Materials ............................ ...............................
20
ARTICLE 16
INSURANCE ................................................. ...............................
20
16.1
Insurance to be Maintained ...................................... ...............................
20
16.1.1 ....................................................................... ...............................
20
16. 1. 2 ....................................................................... ...............................
20
16. 1. 3 ....................................................................... ...............................
20
16. 1. 4 ....................................................................... ...............................
21
16.2
Acceptable Terms of Coverage ................................ ...............................
21
16.3
Index ........................................................................ ...............................
21
16.4
Waiver of Subrogation .............................................. ...............................
21
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Page
ARTICLE 17
DAMAGE BY FIRE OR CASUALTY ............. ...............................
22
17.1
Lessee to Give Notice ............................................... ...............................
22
•
17.2
Restoration ................................................................. .............................22
17.3
Casualty Late in Term .............................................. ...............................
22
17.4
Acceptable of Insurance Proceeds .......................... ...............................
23
17.4.1 ....................................................................... ...............................
23
17.4.2 ....................................................................... ...............................
23
17.4.3 ....................................................................... ......................
.......... 23
ARTICLE 18
EMINENT DOMAIN ....................................... ...............................
23
18.1
Lease Governs ......................................................... ...............................
23
18.2
Termination of Lease ............................................... ...............................
23
18.3
Partial Taking - Restoration ...................................... ...............................
24
18.4
Distribution of Award ................................................ ...............................
24
18.5
Allocation of Award - Partial Taking ......................... ...............................
24
18.5.1 ....................................................................... ...............................
24
18. 5. 2 ....................................................................... ...............................
24
18. 5. 3 ....................................................................... ...............................
24
18.6
Allocation of Award - Temporary Taking .................. ...............................
24
18.7
Allocation of Award - Total Taking ........................... ...............................
24
18.7.1 ....................................................................... ...............................
25
18. 7. 2 ....................................................................... ...............................
25
18.8
Conduct of Proceedings ........................................... ...............................
25
18.9
Notices ..................................................................... ...............................
25
•
ARTICLE 19
ASSIGNMENT AND SUBLETTING .............. ...............................
25
ARTICLE 20
LEASEHOLD MORTGAGES ........................ ...............................
25
ARTICLE 21
PERFORMANCE OF LESSEE'S COVENANTS ..........................
25
21.1
Right of Performance ............................................... ...............................
25
21.1.1 ....................................................................... ...............................
26
21. 1. 2 ....................................................................... ...............................
26
21. 1. 3 ....................................................................... ...............................
26
21.2
Reimbursement and Damages ................................ ...............................
26
ARTICLE 22
REPRESENTATIONS ................................... ........................:......
26
22.1
Lessor's Representations ......................................... ...............................
26
22.1.1 ....................................................................... ...............................
26
22. 1. 2 ....................................................................... ...............................
26
22.2
Lessee's Representations ........................................ ...............................
26
22.2.1 ........................................................................ ...............................
26
22. 2. 2 ....................................................................... ...............................
26
22. 2. 3 ....................................................................... ...............................
27
22. 2. 4 ....................................................................... ...............................
27
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ARTICLE 23
DEFAULTS, REMEDIES AND TERMINATION ...........................
27
23.1
Legal Actions ........................................................... ...............................
27
23.1.1 Institution of Legal Actions .................. ...............................
27
23.1.2 Applicable Law ................................... ...............................
27
23.2
Rights and Remedies are Cumulative ...................... ...............................
27
23.3
Occurrence of Default .............................................. ...............................
27
23.3.1 ............................................................ ...............................
27
23.3.2 ............................................................ ...............................
28
23.3.3 ............................................................ ...............................
28
23.3.4 ............................................................ ...............................
28
23.3.5 ............................................................ ...............................
28
23.4
Remedies ................................................................... .............................28
23.4.1 ............................................................ ...............................
28
23.4.2 ............................................................ ...............................
28
23.4.3 ............................................................ ...............................
28
ARTICLE 24
PERMITTED CONTESTS ............................. ...............................
29
ARTICLE 25
ENTRY BY LESSOR ..................................... ...............................
29
ARTICLE 26
FORCE MAJEURE ....................................... ...............................
29
ARTICLE 27
MISCELLANEOUS ....................................... ...............................
29
27.1
Notices ....................................................................... .............................29
27.2
No Claims Against Lessor ........................................ ...............................
30
27.3
Integration ................................................................ ...............................
30
27.4
No Waiver By Lessor ............................................... ...............................
30
27.5
Severability ................................................................. .............................31
27.6
Holding Over .............................................................. .............................31
27.7
No Partnership ......................................................... ...............................
31
27.8
Federal Funds Provisions ........................................ ...............................
31
27.9
Time of the Essence ................................................ ...............................
32
zo
LEASE BY AND BETWEEN
THE CITY OF NEWPORT BEACH AND THE BALBOA PERFORMING ARTS
THEATRE FOUNDATION •
This Lease ( "Lease "), entered into as of November 23, 1998 (Effective Date) by
and between the City of Newport Beach, a Charter City and municipal corporation
( "Lessor') and the Balboa Performing Arts Theatre Foundation ( "Lessee "), is made with
reference to the following:
RECITALS
A. Lessor is the owner of the property, structures and improvements,
commonly known as the Balboa Theatre located at 707 E. Balboa Blvd in
the City of Newport Beach ( "Property ").
B. Lessee purchased the Property with Community Development Block
Grant (CDBG) funds ( "Federal Funds ") from the United States Department
of Housing and Urban Development. The Federal Funds were granted
pursuant to Title 1 of the Housing and Community Development Act of
1974 (42 U.S.C. 5301 et. seq.) as amended (Act) and the Regulations of •
24 C.F.R. Section 570 e. seq. (Regulations).
C. The Federal Funds were granted to Lessor, in part, to benefit low income
residents and households in the vicinity of the Property and to revitalize
the economy in the primary commercial area that serves these residents.
D. Lessee is a non - profit corporation organized pursuant to and in
compliance with the provisions of California law and is presently in good
standing. Lessee was organized by, and its members include, individuals
who reside in an around the Property and the area to be benefited by the
use of the Federal Funds.
E. The City Council of the City of Newport Beach (City Council) has
determined that this Lease and the use of the Property as a Theatre is
consistent with the City Charter, the Newport Beach General Plan and
Zoning Ordinance and all other applicable Federal, State and local laws.
F. The City Council has also determined that this Lease will benefit, and
serve the interests of, the low income residents and business owners in
the area for which the Federal Funds were granted.
NOW, THEREFORE, in consideration of the terms, covenants and conditions in •
this Lease, Lessor and Lessee hereby agree as follows:
1
• ARTICLE 1 SUBJECT OF LEASE
1.1 Purpose of the Lease
The purpose of this Lease is to require Lessee to renovate and rehabilitate the
Property consistent with its original design and architecture and, subsequent to
renovation, require Lessee to operate a first class community Theatre. The
renovation and operation of the Theatre is intended to serve the needs and
interests of the residents and business owners in the area to be benefited
through the use of the Federal Funds.
1.2 The Property
The term "Property" includes the land described in Exhibit A and depicted in
Exhibit B as well as the structure(s), any improvements and personal property.
The term "Theatre" generally refers to the use of the structure(s), improvements
and fixtures located on the Property as a non - profit cultural and performing arts
center.
1.3 Lessor
Lessor is the City of Newport Beach, a Charter City and municipal corporation.
• The principal office of Lessor is located at City Hall, 3300 Newport Boulevard,
Newport Beach, California 92658 -8915. For the purposes of this Lease, the term
"Lessor" shall include all officers, employees, agents or representatives of
Lessor.
1.4 Lessee
Lessee is the Balboa Performing Arts Theatre Foundation. Lessee is a
California non - profit public benefit corporation organized for the purpose of
renovating, operating and maintaining the Theatre and engaging in activities that
will, among other things, serve the interests of, and benefit, the area commonly
known as Central Balboa or Balboa Village. For the purposes of this Lease, the
term "Lessee" shall include all officers, employees, agents or representatives of
Lessee.
ARTICLE 2 LEASE OF PROPERTY
2.1 Lease of Property
Lessor leases the Property to Lessee, and Lessee leases the Property from
Lessor for the Term and pursuant to the terms, provisions, covenants and
conditions of this Lease. Lessor reserves all rights to substances below the
. 2
0
surface of the Property and the right to produce or take any of those substances •
so long as the activities do not impair or interfere with the operation or aesthetics
of the Theatre.
2.2 Condition of Title
The Property is leased subject to the Permitted Exceptions (Exhibit C) and other
matters affecting title which do not inhibit, prevent or impair the operation,
maintenance or use of the Theatre.
ARTICLE 3 POSSESSION OF PROPERTY
3.1 Quiet Enjoyment
Lessee shall be entitled to peaceably and quietly use and enjoy the Property for
the Term, without hindrance or interruption by Lessor except for the exercise of
Lessor's rights pursuant to this Lease. Lessor shall not be liable in damages or
otherwise, because of the interruption or termination of any service provided by
Lessor (such as, water or sewer service), or a termination, interruption or
disturbance of any service attributable to any act or omission of Lessee.
3.2 Condition of Property
Lessee has investigated and researched all physical conditions of the Property •
that could affect Lessee's use, enjoyment and improvement of the Property
including soil conditions, the condition of structures, and the condition of utilities.
By execution of this Lease, Lessee shall be deemed to have accepted the
Property in an "AS IS" condition. Lessor has provided Lessee with a report that
confirms the presence of lead -based paint on the Property and Lessee
acknowledges that substantial improvements, including seismic retrofit and
remediation of the lead -based paint, will be necessary before the Property can
be operated as a first -class community Theatre as required by this Lease.
3.3 Ownership of Improvements
During the Term of this Lease, Lessee shall hold title to the improvements and
personal property necessary or convenient to the operation or maintenance of
the Theatre, such as fixtures, machinery, rigging, lighting, staging, merchandise,
trade fixtures (collectively, Equipment) that have been constructed or placed on
the Property
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• 3.4 Surrender of Property
3.4.1 On expiration of the Term or termination of this Lease, Lessee shall
peaceably and quietly leave and surrender the Property and
Equipment to Lessor, in good order, condition and repair,
reasonable wear and tear and obsolescence excepted. Lessee
shall deliver to Lessor all contracts, agreements, books, records,
and other documents related to the operation, maintenance or use
of the Property.
3.4.2 Upon the expiration of the Term or termination of this Lease and
within ten (10) days of a written request by Lessor, Lessee shall
immediately deliver to Lessor the following:
(i) Documents reasonably necessary for Lessor's ownership of the
Property and Equipment to be clearly reflected of record.
(ii) Title insurance, surety bond, or other security reasonably
acceptable to Lessor insuring Lessor against all claims and liens
against the Property other than those incurred by Lessor or
accepted by Lessor in writing.
(iii) All plans, surveys, permits and other documents relating to the
• Property as may be in the possession of Lessee at the time.
3.4.3 All documents and instruments to be delivered pursuant to this
Subsection shall be in a form satisfactory to Lessor.
ARTICLE 4 TERMIOPTION TO PURCHASE
4.1 Duration and Commencement
The Term of this Lease shall commence on the Effective Date and shall expire
on the twenty -fifth (25') anniversary subject to early termination or Lessee's
exercise of the option to purchase as provided in Section 4.3.
4.2 Option to Extend
Any extension of this Lease, and the terms and conditions of the extension, shall
be at Lessor's option, in its sole and absolute discretion.
4.3 Option to Purchase
Lessee shall have the option to purchase the Property subject to satisfaction of
the following:
• 4
4.3.1 Lessee shall have completed the Required Improvements; and •
4.3.2 Lessee shall have operated the Theatre in full compliance with the
provisions of Article 8 for a period of five (5) years; and
4.3.3 Lessee has given Lessor thirty (30) days written notice of its
intention (notice of intent) to exercise the option to purchase; and
4.3.4 Lessee is not in default when the notice of intent is served or at
close of escrow; and
4.3.5 Lessee, within fifteen (15) days after service of the notice of intent,
opens an escrow for the purchase of the Property and deposits ten
percent (10 %) of the purchase price into escrow.
4.4 Option - Purchase Price
The purchase price of the Property shall be the sum of (1) the price paid by
Lessor ($480,000) and (2) an amount equal to $480,000 multiplied by the
cumulative percentage increase in the Consumer Price Index (All Urban
Consumers — Los Angeles, Anaheim Riverside — All Items) from the Effective
date to the date of the Notice of Intent. For example, if Lessee exercises the •
option nine (9) years after the Effective Date and the increase in the CPI during
that period is thirty percent (30 %), the purchase price would be $624,000.
($480,000 plus $144,000)
4.5 Riqht of First Refusal
Lessee shall have the right of first refusal to purchase the Property prior to the
sale to any third party. Lessor shall give Lessee sixty (60) days written notice of
its intent to sell the Property and Lessee's right to purchase during that period.
Lessee shall exercise the option by serving Lessor with written Notice of Intent to
purchase within sixty (60) days after receipt of the notice of intent to sell and
complying with Subsection 4.3.5. The purchase price for the Property shall be
as specified in Section 4.4.
ARTICLE 5 RENT /CONSIDERATION
5.1 No Money Payable by Lessee
Lessee shall not pay money as rent to Lessor.
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• 5.2 Other Consideration
In consideration for this Lease, Lessee covenants that, during the Term, it will:
5.2.1 Operate and maintain a Theatre on the Property in full compliance
with the terms and conditions of this Lease and at no cost to
Lessor.
5.2.2 Maintain its non - profit status.
5.2.3 Construct the Required Improvements in accordance with the
provisions of Article 9 and maintain the Property in accordance with
this Lease at no cost to Lessor.
5.2.4 Defend, indemnify and hold Lessor harmless with respect to the
renovation, use, maintenance and operation of the Property.
5.2.5 Use any excess revenue or funds for purposes related to the
operation of the Theatre or the revitalization of Central
Balboa /Balboa Village. The term "excess revenue or funds" means
any revenue or funds (other than the principal and interest of the
Contributions Fund) in excess of the amount projected in Lessee's
• then current Budget and which, in Lessee's reasonable
determination, are not needed for Lessee's reserve account(s).
ARTICLE 6 CONTRIBUTIONS FUND
Lessee shall establish and maintain, at a financial institution in an account insured by
FDIC, FSLIC or similar insurance, a separate fund (Contributions Fund) for the purpose
of accepting contributions from any source. Lessee shall use the Contributions Fund to
pay for the improvements required by this Lease and/or to support the operation and
maintenance of the Theatre. Lessee shall establish and maintain an on -going fund
raising program as part of its Operations and Marketing Operations Plan Article 7 and
use its best efforts to ensure the success of the program.
ARTICLE 7 ANNUAL BUDGET /OPERATION AND MARKETING PLAN
7.1 Budget/Timing
7.1.1 Initial Budget
Lessee shall prepare, and submit to the Lessor, an annual budget
for the renovation, maintenance and operation of the Theatre
(Budget). The first Budget shall be adopted, and submitted to
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Lessor, within sixty (60) days after the Effective Date. Subsequent •
annual Budgets shall be submitted to Lessor no later than fifteen
(15) days after adoption by Lessee.
7.1.2 Proposed Revision
Lessee shall provide Lessor with material modifications or revisions
to the Budget within fifteen (15) days after adoption by Lessee.
7.1.3 Year End Financial Statement
Within ninety (90) days after the last day of Lessee's fiscal year,
Lessee shall submit to Lessor a cash flow statement itemizing all of
its revenues and expenditures for that fiscal year.
7.2 Contents of Budget
The Budget shall specify in reasonable detail (as appropriate given the status of
renovation), (i) the proposed rates and charges for the use of the Theatre, (ii) the
balance in all funds and accounts maintained by Lessee, (iii) all projected
revenues and sources of funds for the fiscal year, (iv) the expenditures proposed
to be made by Lessee in fulfilling its obligations pursuant to this Lease, (v) •
marketing program and costs, (vi) all other proposed expenditures of Lessee,
(vii) the principal balance of the Contributions Fund, (viii) income from the
Contributions Fund, and (ix) cash reserves, if any.
7.3 Operations and Marketing Plan
Lessee shall prepare and adopt an Operations and Marketing Plan (Operations
Plan) during the Term. The initial Operations Plan shall be adopted one hundred
and eighty (180) days prior to anticipated completion of the Required
Improvements. The Operations Plan shall be revised from time to time to reflect
new performances /events, new fund - raising strategies and new or revised
marketing programs. The Operations Plan shall comply with, and provide
information relevant to, the provisions of Article 8 and specify in reasonable
detail (as appropriate given the status of renovation), (i) performances, meetings,
concerts and other events at the Theatre that have been, or are proposed to be,
scheduled (ii) performers and events which Lessee is actively seeking to
schedule at the Theatre, (iii) a marketing Plan for the Theatre including programs
for attracting attendees and efforts to integrate the operation of the Theatre into
efforts to revitalize the local economy, and (iv) fund raising efforts including a
report on fund raising efforts for the prior year. The Operations Plan shall be
submitted to Lessor within fifteen days after adoption or any material
modification. •
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• 7.4 Records
Lessee shall keep and maintain complete, accurate and customary records and
books of account on all sales, whether for cash or on credit, all business
transactions made with respect to the Property during each fiscal year, and the
principal and income of the Contributions Fund. These records shall be retained
intact for a period of not less than three (3) years after the end of each fiscal year
to which the records and books of account pertain. Lessor and representatives
of the United States Government shall be entitled, upon reasonable notice and
during business hours, to inspect and make copies of any and all of the records
and books of account.
7.5 Audit
Lessor and /or the United States Government shall, once per fiscal year, be
entitled to conduct an audit of all records and books of account that Lessee is
required to maintain.
ARTICLE 8 USE OF PROPERTY
8.1 Permitted Use
• The Property shall be used primarily for the operation of a first class cultural and
performing arts center (Theatre) open to the general public. Lessee shall
operate the Theatre in accordance with the standards specified in this Lease and
the relevant Operations Plan. Lessee may, in conjunction with performances,
events and fund - raising activities, conduct incidental operations such as limited
food service or catering, on premises sale of alcoholic beverages (provided
Lessee obtains all required governmental permits and approvals), concessions,
and retail sales directly related to performances or fund raising events.
(Permitted Uses). Lessee may conduct benefits, fund- raising events, previews,
receptions and similar activities where admission is restricted subject only to
compliance with this Lease. Lessee may allow nonprofit civic, charitable,
educational and community organizations to periodically use the Theatre for fund
raising, education or community events in accordance with this Lease and the
Operations Plan. Lessee may conduct fund - raising and similar events on the
Property after completion of the improvements contemplated by Section 9.2
(Seismic Retrofit) and before completion of Required Improvements subject to
issuance of a Special Events Permit by Lessor.
8.2 Performances /Frequency
Lessee shall operate the Theatre in a prudent and businesslike manner
reasonably calculated to assist in the efforts of Lessor and others to revitalize the
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local economy and in full compliance with the Operations Plan. •
8.2.1 Lessee shall schedule and present performances or cultural events
on at least one hundred (100) days of the twelve (12) month period
commencing sixty (60) days after completion of Required
Improvements.
8.2.2 Lessee shall, for each subsequent twelve (12) month period,
schedule and present performances or cultural events on at least
one hundred and fifty (150) days.
8.2.3 Operation of the Theatre is the fundamental consideration for this
Lease and Lessee shall ensure and promote the maximum
reasonable use of the Theatre by performers, artists, and
entertainers likely to attract patrons. The Theatre shall be operated
consistent with the standards, practices and procedures utilized by
first class community Theatres in other jurisdictions.
Program Standards
Lessee shall operate the Theatre in a manner reasonably calculated to achieve
the following objectives: •
8.3.1 Provide frequent and high quality performances and cultural events
to attract patrons to the Theatre and Central Balboa /Balboa Village.
8.3.2 To serve as a catalyst to the revitalization of the economy of the
area to be benefited by use of the Federal Funds.
8.3.3 To make the Theatre accessible to, and enjoyable by, as wide a
potential audience as possible including the low income residents
of the area to be benefited by the use of Federal Funds;
8.3.4 To utilize the skill, ability and energy of members of the community
in combination with a capable and experienced professional staff to
fund and complete the renovation as well as operate and maintain
a first class community Theatre.
Cooperation
Lessor and Lessee shall, at least ninety (90) days prior to completion of the
Required Improvements, commence discussion of a parking validation program
that would allow patrons of the Theatre to use public parking at reduced rates.
Lessor and Lessee shall also discuss ways to integrate operation of the Theatre •
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• into programs for the economic revitalization of Central Balboa /Balboa Village.
8.5 Change of Use
Lessee shall not use, or conduct any activities on, the Property except the
Permitted Uses without the prior written consent of Lessor, which consent may
be withheld at Lessor's sole discretion.
8.6 Compliance with Laws
Lessee shall not use the Property in a manner liable to create a public or private
nuisance or liable to cause structural injury to the Theatre. Lessee shall not
conduct any operation that would invalidate any insurance coverage required of
Lessee. Lessee shall not violate any local, state or federal law in the renovation,
maintenance, or operation of the Property or Theatre. Lessee shall obtain any
required permit(s) from the City and approval from the Department of Alcohol
Beverage Control prior to any sale of alcoholic beverages on or from the
Property.
8.7 Zoning and Planning
Lessor acknowledges that the use of the Property as a Theatre is a legal non-
conforming use as that term is defined in Title 20 of the Newport Beach
Municipal Code (Zoning Code). Lessee shall be entitled to repair, alter, and
modify the structures and improvements on the Property in accordance with the
provisions of the Zoning Code provided Lessee complies with the provisions of
this Lease. Lessee shall also use the Property in conformance with the
provisions of the Central Balboa Specific Plan.
8.8 Nondiscrimination
8.8.1 Lessee shall not discriminate against any person or group of
persons, on account of race, color, creed, religion, sex, marital
status, national origin, or ancestry, in the renovation, operation,
enjoyment or occupancy of the Property.
8.8.2 Lessee shall not discriminate against any employee or applicant for
employment because of race, color, religion, sex, national origin,
age or handicap. Lessee shall take positive steps to ensure that
applicants are employed, and that employees are treated during
employment, without regard to their race, color, religion, sex,
national origin, age or handicap. Lessee shall post in conspicuous
places, available to employees and applicants for employment,
notices specifying the non - discrimination provisions of this Lease.
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Lessee shall, in all solicitations or advertisements for employees •
placed by or on behalf of Lessee, state that all qualified applicants
will receive consideration for employment without regard to race,
color, religion, sex, national origin, age or handicap. Lessee shall
not discriminate on the basis of age in violation of any provision of
the Age Discrimination Act of 1975. Lessee shall not discriminate
against, or with respect to, any otherwise qualified handicapped
individual as provided in Section 504 of the Rehabilitation Act of
1973.
8.8.3 Lessee agrees not to discriminate on the basis of sex, marital
status, race, color, religion, creed, ancestry or national origin of any
person with respect to any agreement, license, contract related to
the renovation, operation, use or occupancy of the Property. All
such contracts, licenses, agreements shall contain non-
discrimination provisions substantially similar to this Lease.
ARTICLE 9 REQUIRED IMPROVEMENTS
9.1 Lessee's Obligations
The Property requires substantial renovation and rehabilitation to be used as, or •
considered, a first class community Theatre. Lessee shall design, obtain building
permits for, and then construct the improvements specified in this Article
(Required Improvements) at Lessee's sole cost and expense
9.2 Seismic Retrofit/Remediation.
The primary structure on the Property is an unreinforced masonry building
constructed prior to 1935 and is subject to the provisions of Chapter 15.07 of the
Newport Beach Municipal Code (Earthquake Hazard in Existing Buildings). In
addition, a preliminary investigation of the Property has revealed some lead -
based paint. Lessee shall submit to Lessor, plans and specifications for
improvements to the Property necessary to comply with the provisions of
Chapter 15.07 (Seismic Retrofit) and a plan to remediate the lead based paint
(Remediation). Lessee shall retain a licensed contractor to construct the Seismic
Retrofit and complete the Remediation. Lessee shall complete the Seismic
Retrofit and the Remediation no later than the date on which the Required
Improvements are required to be completed. Lessee shall be solely responsible
for all costs and expenses associated with the Seismic Retrofit and the
Remediation.
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• 9.3 Conceptual Design Plans
Lessee shall prepare, and submit to Lessor for approval, a proposed conceptual
Plan for the design, construction, furnishing and equipping of the Property for
use as a theatre (Conceptual Design Plan). The Conceptual Design Plan shall
be prepared by a licensed architect. The Conceptual Design Plan shall generally
describe those elements typically included in preliminary Conceptual Design
Plans for the renovation and rehabilitation of a theatre constructed in the 1920's.
The Conceptual Design Plans shall include, without limitation, (1) seating layout
and design; (2) stage and dressing room layout and design (3) lobby and
concession area design; (4) structural modifications necessary to comply with
uniform codes; (5) interior design elements and treatment; (6) exterior design
and treatment; (7) sound and projection systems; (8) lighting systems and
design; (9) public area layout, design and treatment; and (10) stage, orchestra
pit and roll -down backdrop design and treatment. Lessor's right to approve the
Conceptual Design Plan shall be limited to ensuring that the improvements
contemplated by the Conceptual Design Plan are consistent with a first class
community theatre and reasonably consistent with the Guidelines for the
Rehabilitation of Historic Structures published by the Secretary of Interior. The
Conceptual Design Plan shall be deemed approved if Lessor fails to serve
written notice of disapproval within thirty (30) days following submittal. Lessor's
approval shall not be unreasonably withheld and any disapproval by Lessor shall
• specify with particularity the components of the Conceptual Design Plan
disapproved, the reasons for disapproval and alternatives that Lessor would
approve. The Parties shall agree on a Conceptual Design Plan within sixty (60)
days of submittal.
9.4 Design Development Plan
Subsequent to approval of the Conceptual Design Plan, Lessee shall submit
Design Development Plans to Lessor for approval. The Design Development
Plans shall be based on, consistent with and amplify on the information provided
in the Conceptual Design Plan. The Design Development Plans shall include,
(1) specific interior and exterior lighting. Plans and design; (2) specific information
regarding the color, material, treatment and design of all interior and exterior
elements; and (3) schedules showing the principal stages, phases and timing of
construction. Lessor's right of approval, which shall not be unreasonably
withheld, shall be limited to a determination that the Design Development Plans
are based on and consistent with the approved Conceptual Design Plans. The
Design Development Plans shall be deemed approved if Lessor fails to give
written notice of disapproval within thirty (30) days after submittal. Lessor shall
specify with particularity those components of the Design Development Plans
disapproved, the reasons for disapproval and the alternative(s) Lessor would
approve. The Parties shall agree on design Development Plans within sixty (60)
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days after submittal. •
Final Plans and Specifications
Subsequent to approval of Design Development Plans, Lessee shall submit Final
Plans and Specifications. The Final Plans and Specifications shall be based on,
and consistent with, the Design Development Plans. The Final Plans and
Specifications shall be in sufficient detail to provide the information necessary to
obtain building permits from Lessor. Lessor's right of approval pursuant to this
Lease, (distinct from Lessor's rights and obligations as a Charter City and entity
responsible for administration and enforcement of Uniform Building Codes),
which shall not unreasonably be withheld, shall be limited to a determination that
the Final Plans and Specifications are based on and consistent with the
approved Design Development Plans. The Final Plans and Specifications shall
be deemed approved (as to consistency with Design Development Plans) unless
Lessor serves written notice of disapproval within thirty (30) days after submittal.
Lessor shall specify, in detail, each element of the Final Plans and
Specifications disapproved, the reason for disapproval, and alternative(s) that
Lessor would approve. The Parties shall reach agreement on the Final Plans
and Specifications within 60 days of submittal.
Building Permits •
Lessee shall apply for all necessary building permits from Lessor within one (1)
year after the Effective Date. Lessee shall diligently process any corrections and
changes to the submittals that are necessary to comply with State and local law
and to ensure consistency with approved Final Plans and Specifications. Lessee
shall have the option of submitting Final Plans and Specifications as the
documents necessary to obtain building permits assuming suitability for that
purpose. Lessee shall also obtain all permits or approvals required of any other
governmental entity having jurisdiction over the Property or any modification to
the Property. In the event that another governmental agency with jurisdiction
over the Property requires modification of the Final Plans and Specifications, the
modifications shall be submitted to Lessor for review and approval. Lessor shall
not unreasonably withhold or delay the issuance of building permits. Lessor
shall pay all building permit fees, planning fees and other fees and charges
normally imposed on similar projects.
Construction of Required Improvements
Lessee shall begin construction of Required Improvements within sixty (60) days
after approval of all required building permits by Lessor and approval of any
permit(s) required by other governmental agencies with jurisdiction over the
Property. Lessee shall diligently pursue construction of the .Required •
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• Improvements to completion. Lessee shall complete construction of Required
Improvements within one year and sixty (60) days after issuance of all necessary
permits and approvals. The Required Improvements shall be constructed by a
licensed contractor.
9.8 General Requirements
9.8.1 The Required Improvements shall be constructed in compliance
with the provisions of this Lease that regulate, or relate to, the
construction, alteration or maintenance of improvements on the
Property. Lessee acknowledges that the reviews and approvals
required by this Section, with the exception of the issuance of
building permits, are proprietary activities related to Lessor's
ownership of the Property and separate and distinct from any
review or approval conducted by Lessor in its municipal capacity.
Lessee also acknowledges that any approval given pursuant to this
Section, except the issuance of building permits, does not bind
Lessor when acting in its governmental capacity.
9.8.2 Lessor has designated the Committee to Promote Revitalization of
the Peninsula (PROP), or its successor, to review, and approve or
disapprove, the Conceptual Design Plan, the Design Development
• Plans and the Final Plans and Specifications. Lessee shall provide
PROP with bimonthly reports on the status of the renovation of the
Property. Lessee may request City Council review of any decision
by PROP disapproving submittals by serving a request for review
within fifteen days after receipt of the notice of disapproval.
9.9 Extensions
Lessee may request, and the City Manager of the City of Newport Beach may
grant, an extension of up to sixty (60) days with respect to any of the deadlines
specified in this Article. The City Council of the City of Newport Beach may,
upon a showing of good cause, grant extensions in excess of sixty (60) days.
The extensions authorized by this Section are in addition to any extension
resulting from force majeure.
ARTICLE 10 REPAIRS AND MAINTENANCE
Lessee recognizes that the Theatre is a designated local historical landmark and is to
be maintained as such. Lessee shall, at Lessee's expense, perform all routine and
recurring maintenance necessary to keep the Theatre in first class condition and in
accordance with the standards in this Lease. Lessee shall, at a minimum perform the
following: (i) the maintenance of the exterior surfaces of the Theatre (including patching
14
and resurfacing the roof membrane and painting or other protective treatment of the •
exterior wall of the Theatre); (ii) maintenance of the public rest rooms (including repairs
or replacements of tile or rest room fixtures); (iii) the maintenance of electrical systems
serving the Property and Theatre and the repair and replacement of components; (iv)
maintenance of all pipes and plumbing systems serving the Theatre and Property, and
the repair and replacement of components; and (v) the maintenance of all building
service equipment (including HVAC equipment, conveyancing systems, and fire, life
safety, and emergency equipment) and the repair and replacement of components. As
soon as reasonably practicable following the completion of Required Improvements,
Lessee shall prepare and submit to Lessor a schedule for the periodic inspection and
maintenance by Lessee of the Theatre. Lessee shall revise the schedule for
maintenance from time to time during the Term as necessary to maintain the Theatre to
the standards required by this Lease. Lessee shall have the benefit of all warranties
available to Lessor with respect to the Theatre or any component thereof. Lessee shall
not be responsible for the cost of and repair or maintenance required because of the
acts or omissions of Lessor. Lessee may terminate this Lease If the cost of repairing or
replacing any of the structural, roof, main electrical, plumbing, building service or fire /life
safety components of the Theatre would make continued operation of the Theatre
economically infeasible.
ARTICLE 11 STATUS AND MANAGEMENT OF LESSEE
11.1 Nonprofit Status •
During the Term, Lessee shall maintain its status as a California public benefit
nonprofit corporation in full compliance with the California Nonprofit Corporation
Law (California Corporation Code Section 5000 et seq.). Lessee shall also
maintain its qualification as a tax - exempt organization under 501(c)(3) of the
Internal Revenue Code (or any successor statute).
11.2 Executive Committee and Advisory Committee
During the Term, Lessee shall appoint an Executive Committee consisting of no
more than five (5) members. The Executive Committee shall be authorized by
Lessee to interact with Lessor and promptly respond to problems or concerns
expressed by Lessor or members of the general public relative to the operation
of the Theatre. Lessee shall also appoint an Advisory Board or Advisory
Committee that is responsible for fund - raising. Lessee may appoint or establish
other Boards or Committees to perform specific functions relative to the
renovation, maintenance or operation of the Property and Theatre.
11.3 Emplovment of Staff
During the Term, Lessee shall use its best efforts to employ a professional •
15
• Executive Director to manage the day to day renovation and /or operation of the
Theatre and perform such other duties as Lessee may assign. The Executive
Director shall be appointed at least ninety (90) days prior to anticipated
completion of Required Improvements.
ARTICLE 12 ALTERATIONS
12.1 Written Consent
Except as otherwise provided in this Article, Lessee shall obtain the written
consent of Lessor prior to making any structural or nonstructural alterations to
the Properly. All structural and nonstructural alterations to the Property shall
conform to the Theatre's designation as a local landmark and shall be consistent
with the original design and architecture of the Theatre as well as the Guidelines
for the Rehabilitation of Historic Structures published by the Secretary of the
Interior. Lessee shall be solely responsible for all costs and expenses incurred in
making any alteration. All alterations shall be surrendered with the Property
when this Lease expires or terminates.
12.2 Notice of Non - responsibility
Structural and nonstructural alterations shall not be commenced until ten (10)
is days after Lessor has received written notice from Lessee stating the date work
is to commence so that Lessor can post and record an appropriate Notice of
Non - Responsibility. Structural alterations shall be made by a licensed
contractor.
•
ARTICLE 13 PAYMENT OF UTILITIES, TAXES, CHARGES AND FEES
13.1 Public and Private Utility Services
Lessee will pay all charges for all public or private utility services and all sprinkler
systems and interior protective services provided to or for the Property. Lessee
will comply with the terms and conditions of contracts relating to such services.
Lessor shall not be liable for any failure or defect in the supply of any utility.
13.2 Taxes, Assessments. Fees and Charges
Lessee covenants to pay when due all applicable taxes, assessments, fees,
charges, and levies of every type and character, including all interest and
penalties, that are imposed, assessed or levied on the Property, any occupancy
or use of the Property, or any income derived from the Property.
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13.3 Proof of Payment •
Lessee agrees to furnish to Lessor, upon request, proof of the timely payment of
any tax, assessment, levy, fee or charge or other. Lessee may pay any
assessment or tax in installments if legally permissible to do so. In the event
Lessee elects to pay assessments or taxes in installments, Lessee shall be liable
only for those installments which become due and payable during the Term of
this Lease.
13.4 Payment by Lessor
Lessor shall have the right to pay any assessment, tax, fee or charge before the
due date if Lessor has an objectively reasonable belief that Lessee is unwilling or
unable to make the payment. in such event, Lessee shall fully reimburse Lessor
within ten (10) days of written notice of payment by Lessor.
13.5 Property Taxes not Valid
The obligation of Lessee to pay taxes shall not be construed as evidence that
Lessor or Lessee believe that any tax is legal. This Lease is intended only to
obligate Lessee to pay taxes if legally imposed.
13.6 Notice of Possessory Interest: Payment of Taxes and Assessments on Value of •
Entire Lease Premises
In accordance with California Revenue and Taxation Code Section 107.6(a) and
Health and Safety Code Section 33673, Lessor states that by entering into this
Lease, a possessory interest subject to property taxes may be created, and if so,
that Lessee shall pay taxes upon the assessed value of the entire property and
not merely the assessed value of its leasehold interest. Lessee or other party in
whom the possessory interest is vested may be subject to the payment of
property taxes levied on such interest.
ARTICLE 14 LIENS
14.1 Indemnification
Lessee shall indemnify, defend and hold Lessor and the Property free, clear and
harmless from any claims, liens, demands, charges, encumbrances or litigation
arising directly or indirectly out of (1) Lessee's use, occupancy or operation of
the Property or (2) any work performed on, material furnished to the Property.
Lessee shall pay, prior to.delinquency, for all work performed on, and material
furnished to, the Property which may result in a lien on the Property and shall
use its best efforts to keep the Property and Theatre free and clear of all •
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• mechanic's liens and similar liens.
14.2 Satisfaction of Liens
Lessee shall fully pay and discharge a judgment or lien affecting the Property
upon entry of final judgment in any action contesting any claim of lien (if final
judgment establishes the validity of all or a portion of the lien). Lessee shall also
pay any lien within fifteen (15) days after notice of the filing of any lien that
Lessee does not contest. Lessee shall reimburse Lessor upon demand for any
and all loss, damage and expense, including reasonable attorneys' fees, incurred
by Lessor with respect to any judgment or lien resulting from the acts or
omissions of Lessee related to the Property. Lessor shall have the right to
satisfy any judgment or lien if Lessee fails or refuses to do so and Lessee shall
fully reimburse Lessor in such event.
14.3 Notice to Lessor
Lessee shall give Lessor written notice of any claim or lien filed against the
Property and any action or proceeding instituted affecting the title to the
Property.
14.4 Notice of Non - Responsibility
• Lessor shall have the right to post and maintain on the Property any Notice of
Non - Responsibility authorized by law.
•
ARTICLE 15 INDEMNIFICATION
15.1 Indemnity
Lessee shall defend, indemnify and hold harmless Lessor from and against any
and all legal or administrative proceedings, claims, reasonable attorneys' fees
and costs, expenses, penalties, actual damages, punitive damages and losses,
including indemnity claims, in any way related to (1) the improvement, use,
maintenance, or operation of the Property (ii) this lease (iii) the use, release,
generation, storage or disposal of Hazardous Materials (as defined in Section
15.7 on the Property or Theatre, (iv) compliance or non - compliance with any
federal, state or local environmental law, ordinance, rule or regulation, (v) any
accident or injury to, or death of, persons or damage to property occurring on or
about the Property (vi) the removal, clean -up, encapsulation, detoxification or
any other action taken by Lessee or any other party, directly or indirectly arising
out of the presence of Hazardous Materials in, on or around the Property.
fiit]
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15.2 CERCLA Liability •
Lessee agrees that this Lease is intended to operate as an indemnification under
Section 9607(e)(1) of the Comprehensive Environmental Response,
Compensation and Liability Act ( CERCLA), as amended, and the California
Hazardous Substances Act (CHSA), as amended.
15.3 Expense of Proceedings
The defense of any suit, action, legal or administrative proceeding that may be
threatened, brought or instituted against Lessor that is the subject to the
indemnity provided in this Lease shall be conducted at Lessee's sole expense by
legal counsel selected and approved by Lessor.
15.4 Release
Lessee waives, releases and forever discharges Lessor from any and all suits,
causes of action, legal or administrative proceedings, claims, demands,
liabilities, losses, costs, interest, attorneys' fees, expenses, penalties, actual
damages, punitive damages and losses, known or unknown, which Lessee ever
had, now has, or may have in the future that are in any way related to (i) the
condition, status, quality, nature, contamination or environmental state of the
Property including Lessee's claims under the CERCLA, the Carpenter - Presley- •
Tanner Hazardous Substance Account Act and any other federal, state or local
law, ordinance or regulation, or common law theory of recovery, pertaining to the
presence, release, clean -up or containment of Hazardous Materials on the
Property.
15.5 Waiver of California Civil Code Section 1542
Section 1542 of the California Civil Code states:
A general release does not extend to claims which
the creditor does not know or suspect to exist in his
favor at the time of executing the release, which, if
known by him, must have materially affected his
settlement with the debtor.
Lessee knowingly and voluntarily waives its rights pursuant to California Civil
Code Section 1542. Lessee fully understands the consequences of this waiver
and has been advised of the consequences by legal counsel. The Parties intend
this Lease will be effective as a bar to Lessee's Claims.
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• 15.6 Definition of Hazardous Materials
The term "Hazardous Materials" means, without limitation, gasoline, petroleum
products, explosives, radioactive materials, hazardous materials, hazardous
wastes, hazardous or toxic substances, polychlorinated biphenyls or related or
similar materials, asbestos or any other substance or material that may be
defined as a hazardous, toxic or dangerous substance, material, waste, pollutant
or contaminant under any federal, state or local environmental law, ordinance,
rule or regulation as now or at any time hereafter in effect, including, without
limitation, (a) CERCLA, (b) the Federal Water Pollution Control Act, (c) the Clean
Air Act (d) the Resource Conservation and Recovery Act, (e) the Toxic
Substances Control Act, (r) the Hazardous Materials Transportation Act, (g) the
Carpenter - Presley- Tanner Hazardous Substance Account Act, (h) Hazardous
Waste Control Law, and the (i) the Porter - Cologne Water Quality Control Act
(California Water Code Section 13000 et seq).
ARTICLE 16 INSURANCE
16.1 Insurance to be Maintained
Lessee shall take out and maintain, no later than thirty (30) days after the
Effective Date and for the Term of this Lease, at Lessee's sole cost and
• expense, the following insurance.
16.1.1 Comprehensive General Liability in an amount not less than five
million dollars ($5,000,000) combined single limit per occurrence.
Lessor and its officials, employees and representatives shall be
covered as additional insureds with respect to liability arising out of
activities by or on behalf of Lessee or in connection with the use or
occupancy of the Property. Coverage shall be in a form acceptable
to Lessor and shall be primary and non - contributing with any
insurance or self- insurance maintained by Lessor or Lessee.
16.1.2 Workers' Compensation Insurance as required by the Labor Code
of the State of California.
16.1.3 "All Risk" Property Insurance (Operations) including coverage
against the perils of earthquake, fire, explosion of machinery or
equipment, and vandalism covering the full replacement cost of all
improvements and fixtures on the Property. Lessor shall be added
as insured under the standard loss payable endorsement. Lessee
waives all rights of subrogation against Lessor for any damage to
the improvements or fixtures covered by collectable commercial
insurance. Lessee's obligations to provide insurance under this
• 20
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paragraph shall apply to all improvements and fixtures on the •
Property without regard to the date of construction or installation.
Lessee's obligation to provide this coverage is contingent on the
availability of coverage at commercially reasonable rates.
16.1.4 Property Insurance - Construction. During construction of any
improvements on the Property, Lessee shall maintain Builder's Risk
Insurance against "all risk" of physical loss, including the perils of
fire, collapse and transit, with commercially reasonable deductibles,
covering the total cost of work performed, equipment, supplies and
materials furnished on a replacement cost basis. Lessee's
obligation to provide this coverage is contingent on the availability
of coverage at commercially reasonable rates.
16.2. Acceptable Terms of Coverage
Acceptable insurance coverage shall be placed with carriers admitted to write
insurance in California, or carriers with a rating of or equivalent to AVIII by A. M.
Best & Company. Any deviation from this standard shall require the specific
written approval by Lessor. Any deductibles or self- insured retentions must be
declared to and approved by Lessor. At the option of Lessor, Lessee may be
required to reduce or eliminate such deductibles or self- insured retentions or to •
procure a bond guaranteeing payment of losses and related expenses and
costs. Coverage under each policy shall not be suspended, avoided or canceled
by either party except after thirty (30) days prior written notice to Lessor. Lessee
shall furnish City and Lessor with certificates of insurance and with original
endorsements effecting coverage required by this Lease. The certificates and
endorsements for each insurance policy shall be signed by a person authorized
by the insurer to bind coverage on its behalf.
16.3 Index
The limits of insurance coverage required by this Article shall be adjusted on
each seven (7) year anniversary of the Effective Date. The adjustment shall
reflect the percentage increase for the preceding seven (7) years in the
Consumer Price Index for All Urban Consumers, Los Angeles- Anaheim-
Riverside. All Items (1982 -84 Base), published by the Bureau of Labor Statistics,
Department of Labor. Consumer Price Index.
16.4 Waiver of Subrogation
Each policy of insurance procured pursuant to this Article shall contain, if
feasible, either (i) a waiver by the insurer of the right of subrogation against
either party for negligence of such party, or (ii) a statement that the insurance •
21
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• shall not be invalidated should any insured waive, in writing prior to a loss, any or
all right of recovery against any party for loss accruing to the property described
in the insurance policy. Lessor and Lessee waive any and all rights of recovery
against the other for any loss or damage to that Party arising from any cause
insured against under the insurance policies required by this Article.
ARTICLE 17 DAMAGE BY FIRE OR CASUALTY
17.1 Lessee to give Notice
In case of any material damage to or destruction of the Property, Lessee will
promptly give written notice to Lessor generally describing the nature and extent
of the damage or destruction.
17.2 Restoration
Except as provided in Section 18.3, in the event of damage to or destruction of
the Property, Lessee shall repair and restore the Property to its original condition
(subject to changes necessary to comply with then existing laws and any
changes in design approved by Lessor), at Lessee's sole cost and expense. To
the extent the insurance proceeds are insufficient to cover the cost of such repair
and restoration, Lessee shall make up the deficiency out of Lessee's own funds.
• The repair and restoration shall be commenced within a reasonable period of
time following the casualty and shall be completed with due diligence. Lessee
shall have the option to terminate this Lease and surrender possession of the
Property to Lessor if the event the cost of such repair and restoration exceeds
the sum of (1) the amount of insurance proceeds available to Lessee plus (ii) the
amount of the deductible by an amount which Lessee reasonably determines
renders reconstruction of the Property economically infeasible. In the event of
such a termination, Lessee shall pay to Lessor the amount of the deductible and
assign to Lessor any and all rights Lessee may have to the insurance proceeds.
•
17.3 Casualty Late in Term
Lessee or Lessor shall have the right to terminate this Lease on ninety (90) days
written notice If (i) the Property is damaged or destroyed subsequent to the
fifteenth (15th) year of the Term, (ii) the costs of restoration and repair are
estimated to exceed fifty percent (50 %) of the then full replacement cost of the
Property (excluding land costs /value), and (iii) Lessee elects not to repair or
restore the Property. In such event, Lessor shall have the right to receive and
retain all insurance proceeds paid or payable to Lessee on account of any
damage or destruction to the Property.
22
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17.4 Application of Insurance Proceeds •
In the event that Lessee is required to restore the Property pursuant to Section
17.2, proceeds from policies of insurance required by Article 16 and which are
received on account of any damage to or destruction of the Property (less the
costs, fees and expenses incurred in the collection), shall be applied as follows:
17.4.1 Lessee shall furnish to Lessor satisfactory evidence to Lessor of
the total cost of Restoration pursuant to Section 17.2. Lessee shall
then furnish to Lessor satisfactory evidence that it has available the
total amount of money which, when added to the insurance
proceeds received, shall be sufficient to pay the cost of such
Restoration.
17.4.2 Assuming satisfaction of the conditions of subsection [17.4.1] net
insurance proceeds shall be paid to Lessee, unless Lessee is in
Default, to fund restoration. Payments. from the proceeds of
insurance for restoration shall be made only upon written request of
Lessee accompanied by a certificate of an architect to the effect
that the amount requested has been paid or is then due, is properly
a cost of restoration, and there are no mechanic's or similar liens
for labor or material supplied in connection with the restoration to •
date.
17.4.3 Upon completion of restoration and assuming Lessee is not in
default, excess insurance proceeds shall first be paid to Lessor to
the extent of its actual expenses incurred in the restoration, then to
Lessee as working capital
ARTICLE 18 EMINENT DOMAIN
18.1 Lease Governs
The rights and obligations of the Parties with respect to any Award shall be as
provided in this Article if there is any Taking during the Term of this Lease.
18.2 Termination of Lease
This Lease shall terminate effective on the date of surrender of possession of the
Property to the condemning authority in the event of a Total Taking. Lessee shall,
Continue to observe and perform all of the terms, covenants and conditions of
this Lease until the date of termination.
23 •
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• 18.3 Partial Taking — Restoration
If there is a Partial Taking, Lessee may, at its sole cost and expense, whether or
not the condemnation award is sufficient for the purpose, promptly commence
and diligently proceed to effect restoration of the Property as nearly as possible
to the condition and character immediately prior to such Taking.
18.4 Distribution of Award
All awards and damages received on account of any Taking, whether partial or
total, including interest received (Award), shall be paid promptly by the person(s)
receiving the same to an escrow agent mutually acceptable to Lessor and
Lessee to be distributed upon appropriate instruction from the Parties.
18.5 Allocation of Award — Partial Taking
Any Award in a Partial Taking shall be distributed by escrow in the following
order of priority:
18.5.1 First, to Lessor and Lessee to reimburse all costs and expense
incurred in the collection of the Award, including fees and expenses
incurred in the condemnation proceeding;
• 18.5.2 Second, to Lessor, as reimbursement for the costs and expenses
of restoration of the Property and as those costs and expenses are
incurred by Lessee;
18.5.3 Third, if Lessor and Lessee are unable to agree upon the allocation
of the balance of the Award, if any, it shall be deposited by escrow
into a court of competent jurisdiction to be equitably allocated by
the court.
18.6 Allocation of Award — Temporary Taking
In the event of a Taking for temporary use or occupancy, this Lease shall
continue in full force and effect and Lessee shall be entitled to claim, recover and
retain any Award made on account of such temporary Taking. However, if the
period of temporary Taking extends beyond the Term, the Award shall be
apportioned between Lessor and Lessee as of the date of expiration.
18.7 Allocation of Award — Total Taking
Any Award in a Total Taking shall be distributed by escrow in the following
priority:
• 24
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18.7.1 First, to Lessor and Lessee to reimburse for all costs and expenses •
incurred by each in the collection of the Award;
18.7.2 Second, if Lessor and Lessee are unable to agree upon the
allocation, the balance of the Award shall be deposited by escrow
into a court of competent jurisdiction to be equitably allocated by
the court. The determination of the value of Lessee's and Lessor's
respective interests in the Property shall be made as if the Lease
were to continue in full force and effect until the Expiration Date.
18.8 Conduct of Proceedings
Lessee and Lessor shall jointly participate in and prosecute /defend any action or
proceeding involving a Taking of the Property by condemnation or under the
power of eminent domain and shall jointly make any compromise or settlement.
18.9 Notices
Any Party receiving notice of or becoming aware of any condemnation
proceedings shall promptly give written notice to the other party.
ARTICLE 19 ASSIGNMENT AND SUBLETTING
Lessee may not assign or sublet this Lease or any portion of the Property, without •
Lessor's prior written consent which consent may be withheld in Lessor's sole
discretion. However, Lessee may grant such licenses, permits and concessions as are
reasonable, appropriate and customary to promote a Permitted Use and are in
accordance with the Operations Plan. Lessor may, at any time during the Term and in
its sole discretion, assign this Lease or its interest in the Property to a non - profit entity.
ARTICLE 20 LEASEHOLD MORTGAGES
Lessee shall have no right to encumber its interest in this Lease, the Property or the
Theatre without Lessor's prior written consent, which consent may be withheld in
Lessor's sole discretion.
ARTICLE 21 PERFORMANCE OF LESSEE'S COVENANTS
21.1 Right of Performance
If Lessee fails to pay any tax, fee or other charge in accordance with Article -13
within the time period required or shall fail to pay for or maintain any of the
insurance policies provided for in Article 17 within the time required, or to make
any other payment or perform any other act within the time required by this •
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• Lease, then Lessor may, after 30 days' written notice to Lessee (or without
notice in case of an emergency) and without waiving or releasing Lessee:
21.1.1 Pay the tax, assessment, fee or charge payable by Lessee
pursuant to this Lease; or
21.1.2 Pay for and maintain any insurance policies required by this Lease;
or
21.1.3 Make any other payment or perform any other act. that Lessee is
required to pay or perform pursuant to this Lease.
21.2 Reimbursement and Damages
Lessee shall reimburse Lessor for all costs and expenses incurred by Lessor in
the exercise of its rights pursuant to Section 21.1.
ARTICLE 22 REPRESENTATIONS
22.1 Lessor's Representations
Lessor represents to Lessee that:
• 22.1.1 Lessor owns the Property in fee simple subject only to the
Permitted Exceptions and other matters affecting title that do not
inhibit, prevent or impair the operation, maintenance or use of the
Theatre.
22.1.2 Lessor has the power and authority to enter into this Lease and
perform all the obligations of Lessor hereunder.
22.2 Lessee's Representations
Lessee represents to Lessor that:
22.2.1 Lessee has examined the Property and finds it will be fit for use as
a cultural and performing arts center in accordance with this Lease
and the Operations Plan upon completion of Required
Improvements.
22.2.2 Lessor has not made any representations or warranties regarding
the condition of the Property, or its suitability for the construction of
Required Improvements or the operation and maintenance of a
Theatre consistent with this Lease and the Operations Plan.
• 26
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22.2.3 Lessee has the right, power and authority to enter into this Lease •
and to perform all the obligations of Lessee.
22.2.4 Lessee is a California public benefit nonprofit corporation in full
compliance with the provision of the California Nonprofit
Corporation Law (California Corporation Code Section 5000 et
seq.), and is a tax exempt organization under 501(c)(3) of the
Internal Revenue Code.
ARTICLE 23 DEFAULTS, REMEDIES AND TERMINATION
23.1 Legal Actions
23.1.1 Institution of Legal Actions
In addition to any other rights or remedies, either Party may
institute legal action to cure, correct, or remedy any default, to
recover damages for any default, or to obtain any other remedy
consistent with the purpose of this Lease. Any legal action shall be
filed in the County of Orange, State of California.
23.1.2 Applicable Law •
The laws of the State of California shall govern the interpretation
and enforcement of this Lease.
23.2 Rights and Remedies are Cumulative
Except with respect to rights and remedies expressly declared to be exclusive in
this Lease, the rights and remedies of the Parties are cumulative.
23.3 Occurrence of Default
The following acts or omissions shall be considered material-breaches of this
Lease if Lessee fails to cure the default within thirty (30) days after written notice
of default from Lessor or, if cure is not feasible within thirty (30) days, Lessee
has failed to commence cure within thirty (30) days or fails to diligently complete
the cure:
23.3.1 The failure of Lessee to comply with the provisions of Article 9
related to the design and construction of Required Improvements.
27 •
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• 23.3.2 The failure of Lessee to operate the Theatre in compliance with the
provisions of Article 8 related to frequency and quality of
performances and events.
23.3.3 The failure of Lessee to maintain the Property as specified in
Article 10.
23.3.4 The failure of Lessee to restore or repair the Property in the event
of damage or destruction
23.3.5 The failure of Lessee to pay any fee, tax, charge, or assessment
when due or the failure to reimburse Lessor in the event Lessor
pays the fee, tax, charge or assessment.
23.4 Remedies
If Lessee has materially breached this Lease then a Default shall be deemed to
have occurred, Lessor may give written termination notice to Lessee, and on the
date specified in the notice this Lease shall terminate. In addition to the right of
termination, Lessor shall have the following additional rights and remedies:
23.4.1 Lessor shall have the immediate right to reenter the Property
• and /or the Theatre, take possession of the Property and /or
Theatre, any and all Equipment, books and records, contracts and
any other property.
u
23.4.2 Lessor may, at its option, enforce all of its rights and remedies
under this Lease, including the right to recover the consideration
and all other sums payable as they become due. Lessor shall also
be entitled to recover from Lessee all costs of maintenance and
preservation of the Property and /or the Theatre, and all costs,
including attorneys' and receiver's fees, incurred in connection with
the appointment of and performance by a receiver to protect the
Property.
23.4.3 Lessor shall be entitled to recover all money payable to Lessee
related to the operation and use of the Theatre, all bank accounts,
accounts receivable, working capital and cash reserves (if any after
payment of Lessee's debts), and the balance in the Contributions
Fund.
�5
ARTICLE 24 PERMITTED CONTESTS •
Lessee, at no cost or expense to Lessor, may contest (after prior written notice to
Lessor), by appropriate legal proceedings conducted with due diligence, the amount or
validity or application, of any Imposition or lien, provided that the proceedings suspend
collection from Lessor and any action against the Property. If Lessee fails to contest
the matter, or fails to protect Lessor and Lessor's interest in the Property, Lessor may
contest or settle the matter in its sole discretion and obtain reimbursement from Lessee.
ARTICLE 25 ENTRY BY LESSOR
Lessor may enter the Property at reasonable times for the purpose of inspecting,
servicing or posting notices, protecting the Property and /or the Theatre, or for any other
lawful purposes, including showing the Property to prospective purchasers or lessees.
ARTICLE 26 FORCE MAJEURE
Any prevention, delay, non - performance or stoppage due to any of the following causes
shall be excused: any regulation, order, act, restriction or requirement or limitation
imposed by any Federal, State or municipal government; acts of God; acts or omissions
of Lessor; fire, explosion or floods; strikes, walkouts or inability to obtain materials; war,
riots, sabotage or civil insurrection; or any other causes beyond the reasonable control •
of Lessee.
ARTICLE 27 MISCELLANEOUS
27.1 Notices.
All notices and other communications shall be in writing, shall be sent by first
class registered or certified United States mail, postage prepaid, and shall be
deemed to have been given two (2) days after the day of mailing, addressed:
To Lessor;
City Manager
City of Newport Beach
3300 Newport Blvd.
Newport Beach, CA, 92658 -8915
With a copy to:
City Attorney's Office
City of Newport Beach
3300 Newport Blvd. •
29
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• Newport Beach, CA, 92658 -8915
or at such other addresses as Lessor shall have furnished to Lessee; and
To Lessee;
Balboa Performing Arts Theatre Foundation
P.O. Box 752
Balboa, CA 92661
With a copy to:
Steve Bromberg
Bromberg & Yeager
620 Newport Center Drive
11' Floor
Newport Beach, CA, 92660
or at such other addresses as Lessee shall have furnished Lessor in writing.
27.2 No Claims Against Lessor
• Nothing in this Lease constitutes any consent or request by Lessor for the
performance of any labor or services or the furnishing of any materials to the
Property
27.3 Integration
This Lease, and the exhibits, are the entire Agreement between the Parties, and
there are no agreements or representations between the Parties except those
specified in this Lease. This Lease supersedes any prior negotiations,
representations, discussions or agreements between the Parties with respect to
the Property and /or the Theatre. Except as otherwise provided, no subsequent
change or addition to this Lease shall be binding unless in writing and signed by
the Parties.
27.4 No Waiver By Lessor
To the extent permitted by law, no failure by Lessor to insist upon the strict
performance of any term of this Lease, or to exercise any right, power or remedy
upon a Default under this Lease, shall constitute a waiver.
30
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27.5 Severability •
If any term of this Lease or any application thereof shall be declared invalid or
unenforceable by a court of competent jurisdiction, the remainder of this Lease
shall not be affected. Unless otherwise expressly provided, any approval or
consent of Lessor required shall not be unreasonably withheld or delayed. This
Lease shall be binding upon and inure to the benefit of and be enforceable by
the respective successors of the parties.
27.6 Holding Over
A tenancy for month to month shall result if Lessee remains in possession of the
Property or the Theatre with the consent of Lessor after the expiration of the
Term. The month to month tenancy shall be on the same terms and conditions
as contained in this Lease.
27.7 No Partnership
This Lease does not cause Lessor to be a partner of Lessee, a joint venturer
with Lessee, or a member of a joint enterprise of Lessee relative to the operation
of the Theatre or otherwise.
27.8 Federal Funds Provisions •
No Federal appropriated funds shall be paid, by or on behalf of Lessee to any
person for the purpose of influencing or attempting to influence an officer or
employee of any Federal agency, a Member of Congress, an officer or employee
of Congress, or an employee of a Member of Congress in connection with the
awarding of any Federal contract, the making of any Federal grant, the making of
any Federal loan, the entering into of any cooperative agreement, and the
extension, continuation, renewal, amendment, or modification of any Federal
contract, grant, loan, or cooperative agreement. If any funds other than Federal
appropriated funds have been paid or will be paid to any person for influencing
or attempting to influence an officer or employee of any agency, a Member of
Congress, and officer or employee of Congress or an employee of a Member of
Congress in connection with this Federal contract, grant, loan or cooperative
agreement, Lessee shall complete and submit Standard Form -LLL, "Disclosure
Form to Report Lobbying," in accordance with its instructions.
Lessee shall require that the language of this certification be included in the
award documents for all contracts, subcontracts, and agreements.
31 •
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Z7.9 Time of the Essence
Time is of the essence relative to all of the terms, provisions, covenants and
conditions of this Lease.
FOR LESSOR
CITY O EWPORT BEACH
ennis O'Neil
Mayor for City of Newport Beach
FOR LESSEE
BALBOA PERFORMING ARTS
/THEATRE FOUNDATION- --�-
Dayna Pettit
President of Balboa Performing Arts
Theatre Foundation
APPROVED AS TO FORM
C17OF NEWPORT BEACH:
%Robert H. Burnham
City Attorney for City of Newport Beach
ATTEST:
CITY OF NEWPORT BEACH
f.
Dated� Z62 - /
Dated /J-, l / J /
Dated !�
LaVonne Harkless
City Clerk for City of Newport Beach
F: \cat\ shared \da\ Projects \BalboaTheatre \Lease \FinalLease120398.doc
32
71
CALIFORNIA ALL - PURPOSE ACKNOWLEDGMENT
State of California l a
F`� J(` ss.
County of l ,, Gl�_v'1
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On —ii _C' beforeme,C� r� �t r t (ur��G-CL� v-�U:�
Date Name d dle of Officer (e.g., 'Jane Doe, Notary Public)
personally appeared
Name(s) of signer(s)
personally known to me
proved to me on the basis of satisfactory
evidence
rl =1S HER
Common >' 1174329 i
y - Notary PUDiic - California >_
Orange County
My Comm. Envies Feb 21,2M2
to be the personal whose nameW is are
subscribed to the wipQ Instrument and
acknowledged to me ha he he /they executed
the same n his erltheir -.ziuthorized
capacity(1901 and that by is her /their
signature(Won the instrument the person, or
the entity upon behalf of which the person( l
acted, executed the instrument.
NESS my hand and pfficial seal.
r`
Place Notary Seal Above Nun of Notky Public
OPTIONAL
Though the information below is not required by law. it may prove valuable to persons relying on the document
and could prevent fraudulent removal and reattachment of this form to another document.
Description of Attache
Title or Type of Document:
r
(l; Document Date: ` ` —� Number of Pages -,
r
� 1
Signers) Other Than Named Above:
r Capacity(ies) Claimed by Signer
Signer's Name:
�y _I Individual Top of thumb here
Ct Corporate Officer— Ttle(s):
` C Partner — ❑ Limited - General
0I Attorney in Fact
`Y ❑ Trustee
E. Guardian or Conservator
Other: �
5 '
V Signer Is Representing:
Q 1997 National Notary Association 9350 be Solo Ave.. P.O. Box 2402 Chatsworth. CA 91 313_402 Prod. No 5907 Reorder. Call Toll -Free 1 -800- 876 -682-
•
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CALIFORNIA ALL - PURPOSE ACKNOWLEDGMENT
State of California I
County of G-�d�, ss.
On ` - , \ - V i �j , before me,
Dale
personally appeared
CAi.,y -;SHER
t Commission � t 174329
i -s - tvorory PVafC - California
Orange County
MyC0mm.50 es Feb 21,2002
Y Nanneh) of Sign
personally known to me
proved to me on the basis of satisfactory
evidence
to be the person whose name(\KC•3yare
subscribed to the within strument and
acknowledged to me thVhaa he hey executed
the same in his )their authorized
capacity(i)W, and by W he /their
signature(on the instrument the person or
the entity upon behalf of which the person$)
acted, executed the instrument.
W ESS my hand and official seal.
Place Notary Seal Above
Sign ure of . otary AMC
OPTIONAL
.kA_
Though the information below is not required by law it may prove valuable to persons relying on the document
and could prevent fraudulent removal and reattachment of this form to another document.
Description of Attached ocument
Title or Type of Document:0.��n�
Document Date: "� r� 3 - °fIO Number of Pages.
Signer(s) Other Than Named Above: �.�� "���� U
A
Capacity(ies) Claimed by Signer
Signer's Name: a.
Individual '
ere
:numb h
Corporate Officer— Title(s): Top d
Partner Limited —_ General j
Attorney in Fact
Trustee
Guardian or Conservator
Other:
j
Signer Is Representing: I
1A 1997 National Notary Association - 9350 08 Solo Ave.. P.O. Box 2402 • Chatswo". CA 013132402 Prod. No 5907 Reorder: Call Toll Free 1- 800.876 -382-
Nl
CALIFORNIA ALL - PURPOSE ACKNOWLEDGMENT
State of California
County of �Ti�a 1yi,o (-1 I ss.
On (l (w t Itbefore me,
Date L y. Name arM role of officer le.g..'Jane Doe. N ary Public)
personally appeared �)y��� I °E_4'11'I
LDLANI V. INES
_
Commission � 1170960
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No:ary Puolic - California
Orange County
My C:.mm. Expires Jan 25.2 O2
iFlly known to me
to me on the basis of satisfactory
to be the person(a) whose name(&) is /are
subscribed to the within instrument and
acknowledged to me that he/she /they, executed
the same in his /her /their authorized
capacity(ies}, and that by his /her /their
signature(s) on the instrument the person(&), or
the entity upon behalf of which the persons)
acted. executed the instrument.
WITNESS my hand �nd offic'al seal.
Place Notary Seal Above signature of Notary Public
OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the document
and could prevent fraudulent removal and reattachment of this form to another document.
Description of Attached Document
Title or Type of Document: _
Document Date:
Signer(s) Other Than Named Above:
Capacity(ies) Claimed by Signer
Signer's Name:
C Individual
Corporate Officer —Title(s): _
Partner — = Limited General
Attorney in Fact
Trustee
Guardian or Conservator
Other:
Signer Is Representing:
Number of Pages:
RIGHfTHUMeF JNT
,- OF SIGNER'
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9 1997 National Notary gssoc aeon - 9050 Be Soto Fve.. PO Box 2402 - Cna1s onn. G 913 13.2,402 ProO. No 5907 Reorder Call Toll -free 1.800 876.6S--
41-
•
•
LEGAL DESCRIPTION
All that real property situated in the City of Newport Beach, County of Orange, State of California and
more particularly described as follows:
Lots 4 and 5, Block 10, Balboa Tract, in the City of Newport Beach, as shown
on a map recorded in Book 4, Page(s) 11, of Miscellaneous Maps, in the office
of the County Recorder of said County.
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2807239
Exhibit C
A. General and special taxes and assessments collected with taxes for the fiscal year
1998 -1999.
Total:
First Installment:
Second Installment:
Homeowners' Exemption:
Code:
Parcel:
$4,018.90
2,009.45 Open
2,009.45 Open
$0
07 -001
048 - 135 -02
B. The lien of supplemental taxes, if any, assessed pursuant to the provisions of Section
75, et seq. of the Revenue and Taxation Code of the State of California.
1. Covenants, conditions and restrictions (deleting any restrictions indicating any
preference, limitation or discrimination based on race, color, religion, sex, handicap,
familial status or national origin) as set forth in the document
Recorded: in book 153 page 225 of Deeds
2. Covenants, conditions and restrictions (deleting any restrictions indicating any
preference, limitation or discrimination based on race, color, religion, sex, handicap,
familial status or national origin) as set forth in the document
Recorded: in book 3377 page 501, Official Records
Said covenants, conditions and restrictions provide that a violation thereof shall not defeat
or render invalid the lien of any mortgage or deed of trust made in good faith and for
value.
3. Water rights, claims or title to water, whether or not shown by the public records.
4. Matters which may be disclosed by an inspection or by a survey of said land that is
satisfactory to this Company, or by inquiry of the parties in possession thereof.
An inspection of said land has been ordered; upon its completion we will advise you of our
findings. L6
CLTA Preliminary Repon Forth (Rw IMOS) Paae 1 of 2
2807239 •
5. Rights of the parties in possession of said land, under unrecorded leases. Please
submit copies of said leases for our examination.
6. Before issuing its policy of title insurance, this Company will require evidence,
satisfactory to the Company, that the vestee corporation named herein:
(a) was duly incorporated on the date of acquisition of title hereinafter set forth and
(b) is now of good standing in the state where it was formed:
Date of Acquisition: October 17, 1995
7. This Company will require a corporate resolution of the board of directors from the
corporation(s) vested herein, authorizing this transaction and the execution of the documents
necessary to complete it in accordance with instructions given to the Company.
Note No. 1: The only conveyances affecting said land recorded within six (6) months of
the date of this report are as follows: None.
Note No. 2: The premium for a policy of title insurance, if issued, will be based on 80%. .
Jp/lmk
cc: Land America Attn: Linda Hamilton
Page 2 of 2
CLTA Preliminary Repoa Forth (Rev. 1/1/95)
r 1
U
• RECORDING REQUESTED BY AND
WHEN RECORDED RETURN TO:
0
0
City Clerk
City of Newport Beach
P. O. Box 1768
Newport Beach, CA 92658 -8915
TITLE OF DOCUMENT:
Ka C EE1V E D
'Oftec8 &A 4n OfRclSft�Records, County of Orange
Gary GI'r�aaln'vi�llle�,, Clerk-Recorder
OFFICE NO Fee
CITY Or Nz.'WPNW# %109:54am 04110/00
116 16 A17 4
0.00 !Loll 0.00 0.00 9.00 0.011 0.00 0.00
THIS SPACE FOR
USE ONLY.
Exempt Recording Request per Government Code 6103
First Amendment to
Lease by and between the City of Newport Beach
and
the Balboa Performing Arts Theatre Foundation
I
If
�I
NF
q�
FIRST AMENDMENT TO •
LEASE BY AND BETWEEN THE CITY OF NEWPORT BEACH
AND
THE BALBOA PERFORMING ARTS THEATRE FOUNDATION
This Amendment, entered into as of September Q1 , 1999, (Effective Date) by
between the City of Newport Beach, a Charter City and municipal corporation ( "Lessor")
and Balboa Performing Arts Theatre Foundation ("Lessee"), is made with reference to
the following:
RECITALS
A. Lessor and Lessee entered into the subject lease as of November 23, 1998.
(Recorded in the County of Orange, California; 19990066742; 01/29/99)
B. The parties agree that the insurance requirements in the original Lease are
greater than needed for protection of the public interest, and desire to amend
those requirements so as to increase the Foundation's economic viability and
ability to meet the other requirements of the Lease. •
NOW, THEREFORE, Lessor and Lessee hereby agree as follows:
ARTICLE 1 AMENDMENT TO ARTICLE 16, INSURANCE
Paragraph 16.1.1 of the Lease is amended to read as follows:
16.1.1 Comprehensive General Liability in an amount not less than two
million dollars ($2,000,000) combined single limit per occurrence.
Lessor and its officials, employees and representatives shall be
covered as additional insureds with respect to liability arising out of
activities by or on behalf of Lessee or in connection with the use or
occupancy of the Property. Coverage shall be in a form acceptable
to Lessor and shall be primary and non - contributing with any
insurance or self - insurance maintained by Lessor or Lessee. Any
third party permitted to use the Property pursuant to Paragraph 8.1
of this Lease shall provide the same insurance, unless this
requirement is waived or modified, in writing, by Lessor's City
Manager.
•
M.
•
E
E
ARTICLE 2 NO AMENDMENTS TO REMAINDER OF LEASE
All other provisions of the Lease shall remain in force and effect in their original form.
FOR LESSOR
CITY OF NEWPORT BEACH
r
Dennis O'Neil
Mayor
FOR LESSEE
BALBOA PERFORMING ARTS
THEATRE FOUNDATION
Dayna Pettit
President
APPROVED AS TO FORM
CITY OF NEWPORT BEACH
art H. Burnham
Attorney
ATTEST:
CITY OF NEWPORT BEACH
,// w- Iro-
LaVonne Harkless
City Clerk
Dated
Dated .1D /
Dated ! C 4 11
Dated
2
CALIFORNIA ALL - PURPOSE ACKNOWLEDGMENT
State of California
County of t�Cx/u'� q>e� ss.
Cm t-A CL NP) , OO before me, a r"-
Dale Na Tqe ofO (e. me Ja Doe. Notary Pu�� +�
personally appeared0. _ice -�'��
CATHY FISHER
Commission # 1174329 a
Notary Public - California s
Orange County
My Comm. apires Feb21.2002
Place Notary Seal Above
personally known to me
❑ proved to me on the basis of satisfactory
evidence
to be the perso (s) whose nam� is/ re
subscribed to th within inst an a
acknowledged to me that he/ hey xecuted
the same� in his /he hei authori
capacity and that by his /he air
signatur s n the instrument the perso (s
the entity upon behalf of which the perso (s
acted, executed the instrument.
I SS my hand and Icia� I.
SIQIIZW Iotary Public
OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the document
and could prevent fraudulent removal and reattachment of this form to another document.
Description of Attached
Title or Type of Document: _
Document Date: 9� -a 1 ) - 1 1 Numberof Pages:
Signer(s) Other Than Named Above:
Capacity(ies) Claimed by Signer
Signer's Name:
• Individual
• Corporate Officer— Title(s):
• Partner —0 Limited ❑ General
• Attorney in Fact
❑ Trustee
• Guardian or Conservator
• Other:
Signer Is Representing:
RIGHT THUMBPRINT
OF SIGNER
®1997 Nabooal Notary Association • 9350 be Soto Ave., P.O. Box 2402 • Chatsworth, CA 91313 -2402 Prod. No. 5907 Reorder Cal TorWree 1800 - 876.8827
•
•
u
lJ
• RECORDING REQUESTED BY AND
WHEN RECORDED RETURN TO:
City Clerk
City of Newport Beach
P. O. Box 1768
Newport Beach, CA 92658 -8915
TITLE OF DOCUMENT:
�'E4 i-
•pp WR 14 89:03
Recorded in Official Records, County of Orange
Gary Granville, Clark r k
gum I ANN al No Fee
20000181652 09:54am 04110100
116 16 A1T S
0.00 0.00 0.00 12.00 0.00 0.00 0.00
THIS SPACE FOR RECORDER'S USE ONLY.
Exempt Recording Request per Government Code 6103
Second Amendment to
Lease by and between the City of Newport Beach
• and
the Balboa Performing Arts Theatre Foundation
0
1F
tT
NF
SECOND AMENDMENT TO •
LEASE BY AND BETWEEN THE CITY OF NEWPORT BEACH
AND
THE BALBOA PERFORMING ARTS THEATRE FOUNDATION
This Amendment, entered into as of December /3 , 1999, (Effective Date) by
between the City of Newport Beach, a Charter City and municipal corporation ( "Lessor")
and Balboa Performing Arts Theatre Foundation ( "Lessee "), is made with reference to
the following:
RECITALS
A. Lessor and Lessee entered into the subject lease as of November 23, 1998.
(Recorded in the County of Orange, California; 19990066742; 01/79/99)
B. Lessor and Lessee approved the First Amendment to the subject lease on
September 27, 1999, which amendment altered the insurance requirements of
Lessee.
C. The parties agree that the existing lease requirement for required improvements •
and other alterations to be consistent with the Guidelines for the Rehabilitation of
Historic Structures published by the Secretary of the Interior goes beyond the
goals of the parties.
NOW, THEREFORE, Lessor and Lessee hereby agree as follows:
ARTICLE 1 AMENDMENT TO ARTICLE 9, REQUIRED IMPROVEMENTS
Paragraph 9.3 of the Lease is amended to read as follows:
Lessee shall prepare, and submit to Lessor for approval, a proposed conceptual
plan for the design, construction, furnishing and equipping of the Property for use
as a theatre (Conceptual Design Plan). The Conceptual Design Plan shall be
prepared by a licensed architect. The Conceptual Design Plan shall generally
describe those elements typically included in preliminary Conceptual Design
Plans for the renovation and rehabilitation of a theatre constructed in the 1920's.
The Conceptual Design Plan shall include, without limitation, (1) seating layout
and design; (2) stage and dressing room layout and design; (3) lobby and
concession area design; (4) structural modifications necessary to comply with
uniform codes; (5) interior design elements and treatment; (6) exterior design
and treatment; (7) sound and projection systems; (8) lighting systems and •
design; (9) public area layout, design and treatment; and (10) stage, orchestra
• pit and roll -down backdrop design and treatment. Lessor's right to approve the
Conceptual Design Plan shall be limited to ensuring that the improvements
contemplated are consistent with a first class community theatre and that the
exterior design and treatment are reasonably consistent with the Guidelines for
the Rehabilitation of Historic Structures published by the Secretary of the Interior.
The Conceptual Design Plan shall be deemed approved if Lessor fails to serve
written notice of disapproval within thirty (30) days following submittal. Lessor's
approval shall not be unreasonably withheld and any disapproval by Lessor shall
specify with particularity the components of the Conceptual Design Plan
disapproved, the reasons for disapproval and alternatives that Lessor would
approve. The Parties shall agree on a Conceptual Design Plan within sixty (60)
days of submittal.
ARTICLE 2 AMENDMENT TO ARTICLE 12, ALTERATIONS
Paragraph 12.1 is amended to read as follows:
Except as otherwise provided in this Article, Lessee shall obtain the written
consent of Lessor prior to making any structural or nonstructural alterations to
the Property. All structural and nonstructural alterations to the exterior of the
Property shall conform to the Theatre's designation as a local landmark and shall
be consistent with the original design and architecture of the Theatre as well as
• the Guidelines for the Rehabilitation of Historic Structures published by the
Secretary of the Interior. Lessee shall be solely responsible for all costs and
expenses incurred in making any alteration. All alterations shall be surrendered
with the Property when this Lease expires or terminates.
ARTICLE 3 NO AMENDMENTS TO REMAINDER OF LEASE
All other provisions of the Lease shall remain in force and effect in their original form or
as amended by agreement of the Parties.
FOR LESSOR
CITY OF NEWPORT BEACH
E
Dated 3 l l q( c o
2
53
FOR LESSEE
BALBOA PERFORMING ARTS
THEATRE FOUNDATION
kj4, to, pe,�t�
Dayna P ttit
President
LOVED AS TO FORM
OF NEWPORT BEACH
Robert H. Burnham
City Attorney
ATTEST:
CITY OF NEWPORT BEACH
LaVonne Harkless
City Clerk
Dated
Dated / `F Od
Dated � 16, /c' C
•
•
,Ea
•
•
CALIFORNIA ALL - PURPOSE ACKNOWLEDGMENT
State of California
County of n ,� n ss. r 'r`'��v� --�
personally appeared
CATHY FISHER
Commission # 1171329
Notary Public - C0lifamia $
Orange County
My comm. mires Deb 21, 2002
ID proved
evidence
known to me
me on the basis
satisfactory
to be the perso (s whose nam (s is/ re
subscribed to th within In ent an
acknowledged to me that he/ the executed
the saner in histhe thei author'
capacity ' and that by his /he ei
signature n the instrument the rso s or
the entity upon behalf of which the perso s)
acted, executed the instrument.
W ESS my hand and offililial seal.
i
Place Notary seal Abwe sgna re of r eery P blic
OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the document
and could prevent fraudulent removal and reattachment of this form to another document.
Description of Attached Document
Title or Type of Document
��%C1f��
/�
`�'N�Y's.JG'�`a'�
_ .1 `q g � f—
`C7 e-t
T1 '
Document Date: ` d'
- `
o)
Number of Pages: 3
Signer(s) Other Than Named Above:
Capacity(ies) Claimed by Signer
Signer's Name:
i
Individual
Corporate Officer — Title(s):
Partner —❑ Limited ❑ General
Attorney in Fact
Trustee
❑ Guardian or Conservator
❑ Other:
Signer Is Representing:
. 0 7997 National Notary Assoclatim • 9350 De Soto Ave.. P.O, Bw 7402 • Chatsworth, CA 91313 -2402
RIGHT THUMBPRINT
OF SIGNER
Prod. No. 5907 Reorder Call Toll-Free 1A00-S786927
65
RECORDING REQUESVW
WHEN RECORDED RETURN TO:
'01 FEB 26 A8:46
City Clerk
City of Newport gBach
P.O. Box 1768 fFICE.OF_;THE C1:F�f. CLERK
CITY
Newport Beach, CA 9�6��8- hig`BEACH
TITLE OF DOCUMENT:
Recorded in Official Records, County of Orange
Gary Granville, Clerk - Recorder
IIMIJEJE1B181NBINDIIBIIIIINO FEE
2001008725912:35pm 02116101
114 27 A17 6
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
THIS SPACE FOR RECORDER'S USE ONLY.
i
Exempt Recording Request per Government Code 6103
Third Amendment to Lease By and Between the City of Newport Beach
and the Balboa Performing Arts Theatre Foundation
Recording Reference:
Lease: 19990066742, 1/29/99
First Amendment: 20000181651, 4/10/00
Second Amendment: 20000181652, 4/10/00
P
l'
�F
Cl
•
+r�
• THIRD AMENDMENT TO
LEASE BY AND BETWEEN THE CITY OF NEWPORT BEACH
AND
THE BALBOA PERFORMING ARTS THEATRE FOUNDATION
This Third Amendment to Lease, entered into as of December tk . 2000,
(Effective Date) by and between the City of Newport Beach, a Charter City and
municipal corporation ( "Lessor") and Balboa Performing Arts Theatre Foundation
( "Lessee "), is made with reference to the following:
RECITALS
A. Lessor and Lessee entered into a ground lease (Original Lease) on November
23, 1998.
B. Lessor and Lessee approved the First Amendment to the Original Lease on
September 27, 1999, modifying the insurance obligations of Lessee.
C. Lessor and Lessee approved the Second Amendment to the Original Lease on
• December 13, 1999, deleting the requirement for interior improvements to be
consistent with the Guidelines for the Rehabilitation of Historic Structures
( "Guidelines ") published by the Secretary of the Interior.
D. Lessor and Lessee agree that further amendments to the Original Lease are
necessary to modify provisions that require certain exterior improvements to be
consistent with the Guidelines.
E. Lessor and Lessee agree that the modifications to provisions related to exterior
improvements.are necessary. to.. achieve the primary goal of the lease-which Is
the reconstruction and use of the building as a venue for live theatre
performances and other events that require dressing rooms and related facilities.
NOW, THEREFORE, Lessor and Lessee hereby agree as follows:
ARTICLE 1 AMENDMENT TO ARTICLE 9, REQUIRED IMPROVEMENTS
Paragraph 9.3 of the Lease is amended to read as follows:
Lessee shall prepare, and submit to Lessor for approval, a proposed conceptual
plan for the design, construction, furnishing and equipping of the Property for use
as a theatre (Conceptual Design Plan). The Conceptual Design Plan shall be
prepared by a licensed architect. The Conceptual Design Plan shall generally
• describe those elements typically included in preliminary Conceptual Design
Plans for the renovation and rehabilitation of a theatre constructed in the 1920's.
The Conceptual Design Plan shall include, without limitation, (1) seating layout
1
5)
and design; (2) stage and dressing room layout and design; (3) lobby and •
concession area design; (4) structural modifications necessary to comply with
uniform codes; (5) interior design elements and treatment; (6) exterior design and
treatment; (7) sound and projection systems; (8) lighting systems and design; (9)
public area layout, design and treatment; and (10) stage, orchestra pit and roll -
down backdrop design and treatment. Lessor's right to approve the Conceptual
Design Plan shall be limited to ensuring that the improvements contemplated are
consistent with a first class community theatre and that the exterior design and
treatment of the front fagade return it as close as possible to its original
appearance. The Conceptual Design Plan shall be deemed approved if Lessor
fails to serve written notice of disapproval within thirty (30) days following
submittal. Lessor's approval shall not be unreasonably withheld and any
disapproval by Lessor shall specify with particularity the components of the
Conceptual Design Plan disapproved, the reasons for disapproval and
alternatives that Lessor would approve. The Parties shall agree. on a Conceptual
Design Plan within sixty (60) days of submittal.
ARTICLE 2 AMENDMENT TO ARTICLE 12, ALTERATIONS
Paragraph 12.1 is amended to read as follows:
Except as otherwise provided in this Article, Lessee shall obtain the written
consent of Lessor prior to making any structural or nonstructural alterations to the
Properly. All structural and nonstructural alterations to the exterior of the
Property, especially the front facade, shall conform to the Theatre's designation •
as a local landmark and shall be consistent with the original design and
architecture of the Theatre. Lessee shall be solely responsible for all costs and
expenses incurred in making any alteration. All alterations shall be surrendered
with the Property when this Lease expires or terminates.
ARTICLE 3 NO AMENDMENTS TO REMAINDER OF LEASE
All other provisions of the Lease shall remain in force and effect in their original form or
as amended by agreement of the Parties.
FOR LESSOR
CITY OF NEWPORT BEACH
c� --�-a Dated t2-- ' I — 0 0
Mayor
u
2
5
•
11
LJ
FOR LESSEE
BALBOA PERFORMING ARTS
THEATRE FOUNDATION
Dayna PCttit
President "TO APPRE M
CITY NEWPORT BEACH
Hobert H. Burnham
/City Attorney
ATTEST:
CITY OF NEWPORT BEACH
LaVonne Harkless
City Clerk
fir: x, Oran,
Dated'�� /
Dated 0 ! o�
mated /-) (`/ / C O
f Q, /
L]
CALIFORNIA ALL - PURPOSE ACKNOWLEDGMENT
State of California l
•� t1� } ss.
County of ))
O
On O U"�, before me.\ 0. t -^ L
personally appeared
CATHY FISHER
Commission # 1174329
Notary Public - California _
Orange County
My Comm.l50m Feb21,?m2
Place Notary Seel Above
.LLJ personally known to me
❑ proved to me on the basis of satisfactory
evidence
to be the person( whose name(6f is are
subscribed to the wit instrumen and
acknowledged to me tha hshe /they executed
the same in hi her /their thorized
capa city( 'lkfs), and that by his her/their
signature( on the instrument the personba, or
the entity upon behalf of which the persorl)
acted, executed the instrument.
M SS my, hand and offs ial se I.
sign re o Notary P D6c
OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the document
and could prevent fraudulent removal and reattachment of this form to another document.
Description of Attached DD current y
Title or Type of Document: \ c1l : i`� � l+�t vl LZC� J
Document Date: 1 j - ( Pf D� Number of Pages,
Signer(s) Other Than Named Above: 00.� k � ,C�X3 �O
Gil I
Capacity(ies) Claimed,by Signer
�ZYrnn',� i�eG{
Signer's Name:
El Jt�� :•
Individual Ir Top of thumb here
❑ Corporate Officer — Title(s):
❑ Partner — ❑Limited ❑General
❑ Attorney in Fact
• Trustee
• Guardian or Conservator
❑ Other.
Signer Is Representing:
•
•
- - ia - - - •
- - -_. -. . -. _.. ._ .. ... -. _ _ -.�.- _ rte,- z�?2c�:- -_• -�- _._.... ,
®19W National Notary 0.asocu8on • 935o De Solo Ave., P.O. Box 2402 • Chatsworth. CA 9131 &2402 Prod. No. 5907 Reorder: Call ToILFree 1400 -B78 -6827
UV
•
u
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of California
\ (. I ss. ��-
County of l _1
On
personally appeared
CATHY FISHBt
Commission # 1174329 a
Notory Public - CaRforrdo g
Orange County
My Comm. des Feb 21.2002
M personally known to me
❑ proved to me on the basis of satisfactory
evidence
to be the person(W whose named ll IS/ re
subscribed to the within trument and
acknowledged to me the sh hey executed
the same in his their authjqrized
capacity(), and that by hisQe their
signature on the instrument the person(V, or
the entity upon behalf of which the personj0
acted, executed the instrument.
ESS my hand and q fcial seal. eIr
Pi. Notary Seal Aln g DA��. of Not Pu61ic
OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the document
and could prevent fraudulent removal and reattachment of this form to another document.
Description of Attached Do ment r1VV`�rV
Title or Type of Document: i INV 7�1 Am �
Document Date: \ 9 -\a- J Q Number of Pages:
Signer(s) Other Than Named Above: _
Capacity(ies) Claimed.by Signer
Signer's Name:
❑ Individual '
• Corporate Officer — Title(s): Top of thumb here
_
• Partner —❑ Limited ❑ General
❑ Attorney in Fact
❑ Trustee
• Guardian or Conservator
• Other:
Signer Is Representing:
® 1997 Notbnel Notary Aesecia5011 - 9350 De Soto Ave.. P.O. aox 2602 • Chatsworth. CA 91313 -2402 Prod. M. 5907 Reorder. Call Toll -Free 1- 900.8766927
U(