HomeMy WebLinkAbout06 RENTAL AGMT BETWEEN THE CITY & NATIONAL OFFICE LIQUIDATORS FOR A PORTION OF THE BUILDING LOCATED AT 15171 DEL AMO AVE• Agenda Item 6
AGENDA REPORT Reviewed:
y . ~. Az~;
Finance Director
MEETING DATE: MARCH 15, 2011
TO: HONORABLE MAYOR AND COUNCIL MEMBERS
VIA: DAVID C. BIGGS, CITY MANAGER
FROM: CHRISTINE SHINGLETON, ASSISTANT CITY MANAGER
SUBJECT: RENTAL AGREEMENT BETWEEN THE CITY OF TUSTIN AND
NATIONAL OFFICE LIQUIDATORS FOR A PORTION OF THE
BUILDING LOCATED AT 15171 DEL AMO AVENUE
SUMMARY
Approval is requested for a Rental Agreement between the City and National Office
Liquidators, Inc. (Tenant), for aCity-owned property located at 15171 Del Amo Avenue.
RECOMMENDATION
It is recommended that the City Council authorize the Assistant City Manager to execute
the attached Rental Agreement with National Office Liquidator, Inc and to enter into any
extension periods as may be authorized under the Rental Agreement, subject to any non-
substantive modifications as may be deemed necessary by the City Attorney.
FISCAL IMPACT
The Rental Agreement requires the Tenant to pay rent an amount of $176,400 ($9,800 per
month) over an eighteen month term fora 28,000 square foot portion of the subject
building. This rental rate is competitive with market rents for similar types of premises
within the market area. Depending on market conditions for the full development of the
property, the City may extend the Rental Agreement up to six months for two consecutive
option periods to the Tenant. During the initial term of the Rental Agreement, the net rent
proceeds available to the City General Fund will be $162,851. The City will incur
approximately $2,965 in property management fees associated with managing the portion
of the property occupied by the Tenant and approximately $10,584 in brokerage fees.
BACKGROUND
The City recently acquired the property at 15171 Del Amo Avenue, as part of a larger
Agenda Report
Rental Agreement
March 15, 2011
Page 2
acquisition associated with the new construction of an on-ramp and an off-ramp providing
access to and from State Route 55 to Newport Avenue and Edinger Avenue. While the
building was occupied and rented when the City obtained possession of the property, it has
subsequently been vacated. Rather than demolishing the building and associated parking
improvements at a cost to the City, it was determined that rental of the premises in the
existing condition would provide interim rental revenue until such time as the City develops a
comprehensive strategy for marketing the property, market conditions warrant new
development, and the City is able to obtain an adequate financial return for its original
acquisition expenses. In January 2010, the City entered into a brokerage agreement with
Lee & Associates to seek tenants for the building as a light industrial use, distribution use, or
warehouse use (the legal non-conforming uses currently authorized on the property).
In February, 2011 Lee & Associates received a proposal from National Office Liquidators to
rent approximately one-third of the building or 28,000 square feet of the existing 85,000
square feet building. The proposed base term is 18 months. The negotiated rent rate is
proposed at $ .35 per square foot ($9,800 per month) and the premises would be rented on a
triple-net basis, meaning the Tenant would pay all real estate taxes, insurance, maintenance,
repairs, utilities and other items associated with tenancy. The Tenant would be responsible
for all capital expenses including tenant improvements and repairs to the facility and would
accept the property in its "AS-IS WHERE-IS" condition.
The Tenant would use the premises for the operation of an office furniture sale showroom
and warehouse. The proposed Tenant, Nation Office Liquidators, Inc., has similar premises
in Phoenix and Chicago. Most of the Tenant's sales are Internet based.
The City, under the proposed Agreement, shall reserve the right to terminate the month-to-
month tenancy by giving the Tenant a written ninety (90) day Notice of Termination. Upon
execution of the Agreement, the Tenant shall be required to pay, as a security deposit, the
equivalent of one month's rent and the first month's rent.
Should you have any questions, staff will be available to respond.
i
J
ristine A. Shinglet
Assistant City Mana r
Approved for Forwarding By:
~Y1/.G!/~ ~ .>9 e i/J, ~~~i n
I~'avid C. Biggs
City Manager
Attachment
~~~ : ~~~
Total Building 85,000 square feet
Space Rented from City 28,000 square feet
Percentage of Space for Tenant 33
Monthly Rent /psf $ 0.35 NNN
Rent /per month $ 9,800 NNN
Broker's Commission -Initial Term $ 10,584 6.00°~
Broker's Commission -First Extension $ 1,764 3.00%
Broker's Commission - 2nd Extension $ 1,764 3.00%
Property Mgmt Fees - 85,000 sf $ 500
Prop Mgmt Fees attributed to Tenant $ 165
Initial Term (18 months)
City 1st Extension (6 months
City 2nd Extension (6 month
MONTHLY
Month Gross Rent Broker's Property Net
fee Mgmt Monthly
1 $ 9,800 $ 10,584 $ 165 $ (949)
2 $ 9,800 $ - $ 165 $ 9,635
3 $ 9,800 $ - $ 165 $ 9,635
4 $ 9,800 $ - $ 165 $ 9,635
5 $ 9,800 $ - $ 165 $ 9,635
6 $ 9,800 $ - $ 165 $ 9,635
7 $ 9,800 $ - $ 165 $ 9,635
8 $ 9,800 $ - $ 165 $ 9,635
9 $ 9,800 $ - $ 165 $ 9,635
10 $ 9,800 $ - $ 165 $ 9,635
11 $ 9,800 $ - $ 165 $ 9,635
12 $ 9,800 $ - $ 165 $ 9,635
13 $ 9,800 $ - $ 165 $ 9,635
14 $ 9,800 $ - $ 165 $ 9,635
15 $ 9,800 $ - $ 165 $ 9,635
16 $ 9,800 $ - $ 165 $ 9,635
17 $ 9,800 $ - $ 165 $ 9,635
18 $ 9,800 $ - $ 165 $ 9,635
19 $ 9,800 $ 1,764 $ 165 $ 7,871
20 $ 9,800 $ - $ 165 $ 9,635
21 $ 9,800 $ - $ 165 $ 9,635
22 $ 9,800 $ - $ 165 $ 9,635
23 $ 9,800 $ - $ 165 $ 9,635
24 $ 9,800 $ - $ 165 $ 9,635
25 $ 9,800 $ 1,764 $ 165 $ 7,871
26 $ 9,800 $ - $ 165 $ 9,635
27 $ 9,800 $ - $ 165 $ 9,635
28 $ 9,800 $ - $ 165 $ 9,635
29 $ 9,800 $ - $ 165 $ 9,635
30 $ 9,800 $ - $ 165 $ 9,635
CUMULATIVE
Month Gross Rent Broker's Property Net
Fee Mgmt Monthly
1 $ 9,800 $ 10,584 $ 165 $ (949)
2 $ 19,600 $ 10,584 $ 329 $ 8,687
3 $ 29,400 $ 10,584 $ 494 $ 18,322
4 $ 39,200 $ 10,584 $ 659 $ 27,957
5 $ 49,000 $ 10,584 $ 824 $ 37,592
6 $ 58,800 $ 10,584 $ 988 $ 47,228
7 $ 68,600 $ 10,584 $ 1,153 $ 56,863
8 $ 78,400 $ 10,584 $ 1,318 $ 66,498
9 $ 88,200 $ 10,584 $ 1,482 $ 76,134
10 $ 98,000 $ 10,584 $ 1,647 $ 85,769
11 $ 107,800 $ 10,584 $ 1,812 $ 95,404
12 $ 117,600 $ 10,584 $ 1,976 $ 105,040
13 $ 127,400 $ 10,584 $ 2,141 $ 114,675
14 $ 137,200 $ 10,584 $ 2,306 $ 124,310
15 $ 147,000 $ 10,584 $ 2,471 $ 133,945
16 $ 156,800 $ 10,584 $ 2,635 $ 143,581
17 $ 166,600 $ 10,584 $ 2,800 $ 153,216
18 $ 176,400 $ 10,584 $ 2,965 $ 162,851
19 $ 186,200 $ 12,348 $ 3,129 $ 170,723
20 $ 196,000 $ 12,348 $ 3,294 $ 180,358
21 $ 205,800 $ 12,348 $ 3,459 $ 189,993
22 $ 215,600 $ 12,348 $ 3,624 $ 199,628
23 $ 225,400 $ 12,348 $ 3,788 $ 209,264
24 $ 235,200 $ 12,348 $ 3,953 $ 218,899
25 $ 245,000 $ 14,112 $ 4,118 $ 226,770
26 $ 254,800 $ 14,112 $ 4,282 $ 236,406
27 $ 264,600 $ 14,112 $ 4,447 $ 246,041
28 $ 274,400 $ 14,112 $ 4,612 $ 255,676
29 $ 284,200 $ 14,112 $ 4,776 $ 265,312
30 $ 294,000 $ 14,112 $ 4,941 $ 274,947
03/07/2011; 15171 Del Amo -Rental Agreement.xlsx
RENTAL AGREEMENT
1. PARTIES: The parties to this Rental Agreement are the City of Tustin, a municipal
corporation ("City"), and National Office Liquidators ,
("Tenant").
2. RECITALS: This Rental Agreement is made with reference to the following facts:
(a) The City has acquired the property commonly known as 15171 Del Amo Avenue,
Tustin, CA 92780 ("Premises") for a planned redevelopment project (the
"Project").
(b) Since Tenant chooses to occupy the Premises as a new tenant, Tenant understands it
will not be eligible for relocation payments or assistance under the California
Relocation Assistance and Real Property Acquisition Guidelines, Title 25,
California Code of Regulations, Chapter 6, Section 6000 et seq. (the
"Guidelines").
(c) Tenant has a desire to rent approximately 28,000 square feet of the Premises and
occupy the Premises for the purpose of a showroom for retail sales, distribution
and/or warehousing use only. Any other use of the Premises will constitute a
breach of this contract and may result in an eviction.
(d) By this Rental Agreement, the parties intend to establish alandlord/tenant
relationship between themselves and to specify the rights and duties of the
respective parties with reference to the Premises.
3. PREMISES: City does hereby rent to Tenant and Tenant hereby rents from City that
certain real property situated in the City of Tustin, County of Orange, State of California,
commonly known as 15171 Del Amo Avenue. The Land and Buildings are collectively referred
to as the "Premises"
4. TERM: The term of this Rental Agreement shall be eighteen months, commencing on
2011 (hereinafter "Commencement Date").. Tenant agrees to vacate the
Premises on or before the indicated date of termination. The City, at the City's option, may
extend this Rental Agreement up to two 6 (six) month terms, by providing the Tenant with notice
sixty (60) days prior to the expiration of the term an offer to extend tenancy.
5. RENT: For Purposes of this Rental Agreement, Base Rent and Cost Reimbursements are
hereinafter collectively referred to as Rent.
5.1 Base Rent. Tenant shall pay the City the monthly sum of Nine Thousand Eight
Hundred and no dollars ($9,800) payable in advance, commencing on the Commencement Date
and each subsequent month during the term of this Rental Agreement. If the Commencement
Date is other than the first day of a calendar month, the rent payable hereunder shall be prorated
by the City on the basis of a thirty (30) day month. Rental installments shall be paid by giving
such payments to Overland, Pacific & Cutler, Inc., acting as representatives of the City. Make
checks payable to: The City of Tustin c/o Overland, Pacific & Cutler, Inc., 10 Hughes, Suite A-
207, Irvine, CA 92618.
5.2 Cost Reimbursements. All sums payable by Tenant to City under this Rental
Agreement not otherwise required for Base Rent shall be deemed a Cost Reimbursement ("Cost
Reimbursement"), including any special costs incurred by City, which are specifically
attributable to an action (or inaction) of Tenant including without limitation Tenant's failure to
provide the protection and maintenance services required by Section 6 herein. The City will
notify the Tenant of such costs on a monthly basis and Tenant will be obligated to pay City
within thirty (30) calendar days of the date of an invoice for such costs.
5.3 Place of Payment. All payments due and owing shall be made by Tenant to
Overland, Pacific & Cutler, Inc., acting as representatives of the City, or to another party at such
other place as the City may designate in writing from time to time. Make checks payable to: The
City of Tustin c/o Overland, Pacific & Cutler, Inc., 10 Hughes, Suite A-207, Irvine, CA 92618.
5.4 Late Charge. If payment of or any part thereof to be made by Tenant to City
become overdue for a period in excess of ten (10) calendar days, a late charge equal to ten (10)
percent of such overdue amount shall be paid by Tenant for purposes of defraying the expense
incidental to handling such delinquent payment. Pursuant to California law, if Tenant passes a
check on insufficient funds, Tenant will be liable to the City for the amount of the check plus a
service charge of $25.00 for the first check passed on insufficient funds, and $35.00 for each
subsequent check passed on insufficient funds. City may require future payments to be in a form
other than a personal check in the event of a returned check, at City's sole discretion.
5.5 No City Responsibilities. The Tenant hereby acknowledges and agrees that this
Rental Agreement is intended to be a limited eighteen month rental agreement, as such City is
not responsible for any costs, charges, expenses, outlays or any nature whatsoever arising from
or relating to the Premises, or the use or occupancy thereof, of the contents thereof or the
business carried on therein, and that Tenant shall pay all charges, impositions, costs and
expenses of every nature and kind related to the Premises, including costs of maintenance and
repair of the Premises, all costs of insuring the Premises, and all taxes and assessments
attributable to the Premises and which might be associated with the possessory interest of said
Rental Agreement and personal property of the Tenant.
5.6 Security Deposit. Tenant shall provide a security deposit to City of $9,800 prior to
occupying said premises which shall be refundable upon termination of the Rental Agreement
provided that the Premises is returned to the City upon termination in the condition in which it
was first received. No part of this deposit is to be considered an advance payment of rent,
including last month's rent, nor is it to be used or refunded prior to the leased premises being
permanently and totally vacated by the Tenant.
6. PROTECTION, MAINTENANCE, AND REPAIRS: City will not make any
modifications, alterations, improvements or repairs to the Premises of any nature whatsoever and
the Premises is rented to Tenant in an As-IS,Where Is, With ALL Faults basis, in its present state
and condition with all faults. Tenant acknowledges that the City has made no representations or
warranties of any kind whatsoever, either express or implied in connection with any matters with
respect to the Premises, or any portion thereof. with no . Tenant shall be allowed no credit by the
City for costs of any repair work performed or ordered by Tenant to the Premises. Tenant shall,
at Tenant's own expense, maintain and repair the Premises in good order and condition as the
same were on commencement date. The degree of such maintenance and repair to be furnished
by Tenant shall be that which is sufficient to maintain weather tightness, structural stability,
protection from fire hazards, elimination of safety and health hazards which may arise during the
term of this Rental Agreement. The City, upon due notice, may inspect the Premises to insure
performance of the maintenance required. Further, Tenant shall be responsible for the repair and
maintenance of all interior utility systems and those exterior utility systems, distribution lines,
connections and equipment which support the Premises.
6.1. Security and Fire Protection. Tenant shall provide for all security and safety
within the Premises.
7. ALTERATIONS: Tenant will make no alterations or additions in or to the Premises, nor
contract for any alterations or additions without written approval of the City.
8. WAIVERS
8.1 Waiver of Claims. Neither the City of Tustin or the Tustin Community
Redevelopment Agency ("Agency") nor any of their officers, agents, representatives and
employees will be liable and Tenant waives all claims for damage to persons or property
sustained by Tenant or any occupant of the Premises resulting from the Premises or any part of
it, becoming out of repair, resulting from any accident in or about the Premises or resulting
directly or indirectly from any act or neglect of Tenant, occupant or of any other person
including Tenant's agents and employees. All property belonging to Tenant or any occupant of
the Premises will be there at the risk of Tenant or such other person only and City will not be
liable for damages, theft or misappropriation.
8.2 Relocation and Compensation waivers. Tenant by signing this Rental Agreement
is waiving any and all rights of any kind or amount for relocation benefits including but not
limited to any such or similar rights prescribed by any state, federal or local law and/or
regulation and waiving any and all rights to just compensation under U.S. and California
constitutions, and agreeing and acknowledging that they waive any rights to payments for Loss
of Goodwill.
8.3 No Waivers. The failure or omission of City to terminate this tenancy for any
violation of any of its terms, conditions or covenants, shall not be deemed to be a consent by City
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to such violation and shall not bar, stop or prevent City from terminating this Agreement
thereafter, either for such or for any subsequent violation of any such term condition or covenant.
The acceptance of rent under this Agreement shall not be or be construed to be a waiver of any
breach of any term covenant or condition of this Agreement. Nothing contained in this
Agreement shall be construed as limiting City from performing all acts required by City in
connection with the relocation of occupants of the Premises, or taking such steps as it may deem
necessary to remove occupants of the Premises at any time.
9. CLEANLINESS AND WASTE: Tenant will keep the Premises and the walks/alley
adjacent to it at all times in a neat, clean and sanitary condition, free from waste or debris and
will neither commit nor permit any waste or nuisance on the Premises nor store materials
hazardous to health or safety. Debris, trash, and other used materials shall be promptly removed
from the Premises and the Premises shall be kept reasonably clean and free of unused materials
at all times. At termination, the Premises shall be left without containers, tenant's equipment,
and other undesirable materials, and in an acceptably clean condition.
10. VACATION OF PREMISES: Tenant will give the City immediate notice of his/her
intention to move or vacate the Premises, and on that vacation agrees to leave same in good
condition, clear of all debris, hazardous materials and personal property.
11. DAMAGE TO PREMISES: Any damage to the Premises in excess of above ordinary
and normal usage maybe charged to the Tenant.
12. NUISANCE AND WASTE: Tenant shall not commit, suffer or permit any nuisance or
waste in or about the Premises, and shall not permit the use of the Premises for any illegal or
immoral purpose. Tenant further agrees to comply with all State and Federal laws and local
ordinances concerning the Premises and the use of the Premises.
13. INSPECTION BY AGENCY: City by and through its employees or agents, shall have
the right to enter upon the Premises at all reasonable times during the term of this tenancy for the
purpose of inspecting the same, making such repairs as City may deem desirable, and conducting
any investigation, study or remediation activity the City may deem desirable upon providing
Tenant with reasonable advance notice, whenever practicable.
14. PERSONAL PROPERTY LEFT ON PREMISES: City shall have the right,
WITHOUT NOTICE, to sell, destroy or otherwise dispose of any personal property left on the
Premises by Tenant after he/she has vacated or abandoned the Premises, or when this tenancy
has been terminated, or when Tenant maybe evicted from the Premises.
15. DEFAULT AND TERMINATION UPON DEFAULT:
15.1 Events of Default. The following events shall constitute events of default under
this rental agreement:
(a) A default by Tenant in payment when due of any rent or other sum payable under this
Agreement and the continuation of this default for five (5) or more days after notice of
the default by the City.
(b) A default by Tenant in the performance of any of the terms, covenants, or conditions
of the Agreement, other than a default by Tenant in the rent payment, and the
continuation of the default beyond fifteen (15) days after notice by City, or if the default
is curable and would require more than fifteen days, then such reasonable time to cure as
authorized by the City.
(c) The bankruptcy or insolvency of Tenant.
(d) The appointment of a receiver for a substantial part of Tenant's assets.
(e) Tenant's abandonment of the Premises.
(f) The levy upon this Rental Agreement by attachment or execution and the failure to
have the attachment or execution vacated within thirty (30) days.
15.2 Termination Upon Default. On the occurrence of any event of default by Tenant,
City may, in addition to any other rights and remedies given here or by law, terminate this Rental
Agreement and exercise remedies relating to it without further notice or demand in accordance
with the following provisions:
(a) So long as the event of default remains uncured, City shall have the right to give
notice of termination to Tenant, and on the date specified in the termination notice, this
Rental Agreement shall terminate.
(b) If this Rental Agreement is terminated, City may, by judicial process, reenter the
Premises, remove all persons and property, and repossess and enjoy the Premises, all
without prejudice to other remedies that City may have because of Tenant's default or the
termination.
(c) If this Rental Agreement is terminated, City shall have all of the rights and remedies
of a landlord provided by Civil Code section 1951.2, in addition to any other rights and
remedies City may have.
If any rent shall be due or unpaid, or if default shall be made in any of the provisions otherwise
contained in this Rental Agreement on the part of Tenant to be observed and performed, City
may exercise any and all remedies provided by law or equity by reason of such default, including
deduction of any relocation assistance benefits and/or the right at City's option of terminating
this tenancy. Each and all of the remedies of City shall be construed as cumulative and no one of
them as exclusive of the other or as exclusive of any remedy provided by law or equity.
16. UTILITIES AND TAXES: Tenant will pay for electric utilities as charged.
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17. DAMAGE BY FIRE: In the event the Premises are destroyed or so damaged by fire or
other casualty or act of God, then this Rental Agreement shall terminate, and any advance or
unearned rent that may have at such time been paid will be refunded to the Tenant on a pro rata
basis.
18. ASSIGNMENT AND SUBLETTING: Tenant shall not assign this tenancy in whole or
in part, nor sublet the Premises or any portion of the Premises. In the event of a breach of this
condition, City shall have the power to immediately declare this Rental Agreement terminated
and will then be entitled to immediate possession of the Premises.
19. INSURANCE AND INDEMNITY:
19.1 Insurance. Tenant shall provide and maintain in full force and effect at its own
expense during the Term of this Rental Agreement the following insurance covering its
operations under this Rental Agreement. Such insurance shall be provided with insurers licensed
to do business in the State of California, with a rating of at least A VII, according to the latest
Best's Key Rating Guide or A-X (if offered by a surplus line carrier that is non-admitted).
Evidence of such insurance shall be delivered to City prior to the Commencement Date,
including provision of certificates of insurance and required insurer endorsements. Insurance
endorsements (or a copy of the policy, if applicable) shall be provided as evidence of meeting the
requirements of this Section. If self-insured for workers compensation, Tenant shall submit to
the Lessee a copy of its certification of self-insurance issued by the Department of Industrial
Relations. The Insurers shall specifically identify this Rental Agreement and shall contain
express conditions. Such insurance, shall include an endorsement that coverages are to be
primary to and not contributing with any other insurance maintained by City, and an
endorsement shall name the City, and their respective officers, officials, employees, agents and
contractors as additional named insured (except for workers' compensation insurance) and by an
endorsement provide that all losses shall be payable notwithstanding any act or failure to act or
negligence of City, or any other person. All insurance shall be maintained on an occurrence
basis. Insurer or Insurer's agent and Tenant shall give the City thirty (30) days advance written
notice of any written material modification or termination of any insurance required under the
provisions of this Rental Agreement. Failure of Tenant to provide such notice shall be deemed a
material breach of this Rental Agreement.
19.1.1 Comprehensive General Liability Insurance. Comprehensive general
liability and property damage insurance covering the rented Premises, contractual, broad
form property damage, and bodily injury or death, with a combined single limit of not
less than $1,000,000 per occurrence with respect to personal injury or death, and
$1,000,000 per occurrence with respect to property damage.
The general liability policy is to contain, or be endorsed to contain, the following
provisions:
(1) The City and their respective officers, officials, employees, agents
and contractors are to be covered as additional named insureds as respects: liability
arising out of use of the Premises. The coverage shall contain no special limitations on
the scope of protection afforded to the City, its officers, officials, employees, agents or
contractors.
(2) The Tenant's insurance coverage shall be primary insurance as
respects the City, and their respective officers, officials, employees and contractors. Any
insurance or self-insurance maintained by the City shall be in excess of the Tenant's
insurance and shall not contribute with it.
(3) Any failure to comply with reporting or other provisions of the
policies including breaches of warranties shall not affect coverage provided to the City,
its officers, officials, employees, agents, or contractors.
(4) Coverage shall state that the Tenant's insurance shall apply
separately to each additional insured against whom claim is made or suit is brought,
except with respect to the limits of the insurer's liability.
(5) Each insurance policy shall include an endorsement that the
Insurer waives any right of subrogation against the City which may arise by reason of any
activities of Tenant, City or payments under a policy.
19.1.2 Workers Compensation Insurance. Workers compensation
insurance shall be in an amount and form meeting all applicable requirements of the
California Labor Code, covering all persons providing services by or on behalf of Lessee
and all risks to such persons. The worker's compensation is to contain, or be endorsed to
contain, a waiver of subrogation against the City.
19.2 Indemnity. Notwithstanding anything to the contrary hereinabove contained,
and irrespective of any insurance carried by Tenant, Tenant shall defend, with counsel acceptable
to City, indemnify, protect, and save harmless City and their respective officers, officials,
employees, agents and contractors from, and shall pay all costs, expenses and reasonable
attorney fees for all trial and appellate levels and post judgment proceedings in connection with
and from any and all demands, claims, actions, proceedings, suits, losses, liens, costs,
judgments, damages or liabilities of any kind and nature whatsoever, including expenses incurred
in defending against legal actions, for death or injury to persons or damage to property and for
civil fines and penalties arising , or for any violation or alleged violation of local, state or federal
law or regulation at the Premises, or for any breach of this Rental Agreement growing out of , or
in connection, or in any manner predicated upon the use of, occupancy of and/or operations
carried on upon the Premises by Tenant, its officers, officials, employees, agents, servants,
guests, invitees, or contractors.
20. NOTICES. Any notice shall be personally delivered or placed in a sealed envelope
postage paid, addressed to the person on whom it is to be served with return receipt requested
and deposited in the United States Mail. Personal service shall be deemed complete upon
delivery and service by mail shall be deemed complete upon receipt as reflected by the return
receipt. The address to be used for any notice served by mail shall be as follows:
Tenant
National Office Liquidators, Inc.
7
[Insert Address]
City
Assistant City Manager
City of Tustin
300 Centennial Way
Tustin, CA 92780
Attention: Christine Shingleton
21. REFUND OF RENT: In the event Tenant vacates the Premises and terminates this
tenancy before expiration of the rental term for which rent has been paid, City shall refund the
pro rata portion of such rent which is unearned at the time of vacancy.
22. ANTI-DISCRIMINATION: Tenants agrees that this rental Agreement is made and
accepted on and subject to the following conditions: That there will be no discrimination against
or segregation of any person or group of persons, on account of race, color, sex, age, handicap,
marital status, religion, national origin or ancestry in the use, occupancy, tenure or enjoyment of
the Premises, nor will Tenant or any person claiming under or through it establish or permit any
practice or practices of discrimination or segregation with reference to the Premises.
23. ATTORNEY FEES. If as a result of a breach or default under this Rental Agreement,
City uses an attorney to secure compliance with Agreement provisions to recover damages, to
terminate this Agreement, or to evict Tenant, Tenant shall reimburse City, on demand, for all
reasonable attorney fees and expenses incurred by City.
24. KEYS: Tenant agrees on vacating the Premises that Tenant will deliver all keys to the
Premises in the Tenant's possession to the City relocation office at the address stated in
paragraph 5, and on failure to deliver the keys, Tenant agrees that rent for the Premises will
continue to be paid to the City until such time as the keys are delivered.
25. TIME OF ESSENCE. Time is of the essence in this Rental Agreement and all of its
provisions.
26. ENTIRE AGREEMENT: It is understood that there are no oral agreements between the
parties affecting this Rental Agreement and this Rental Agreement supersedes and cancels any
and all previous negotiations and understanding, if any, between the parties and none will be
used to interpret or construe this Agreement.
TUSTIN
"CITY"
Christine A. Shingleton, Assistant City Manager
Date:
Approved as to Form
Doug Holland
City Attorney
National Office Liquidators
"TENANT"
Name and Title
Name and Title
Date:
< Note two corporate signatories authorized to sign
by corporation resolution should sign>
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