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Home My WebLink AboutPCDC Resolution 96-16 07/15/1996PCDC RESOLUTION NO. 96-16 PETALUMA COMMUNITY DEVELOPMENT COMMISSION AUTHORIZING LEASE OF REAL PROPERTY LOCATED AT #6 PAYRAN STREET, PETALUMA, CALIFORNIA TO BURBANK HOUSING MANAGEMENT CORPORATION AND AUTHORIZING THE EXECUTIVE DIRECTOR TO SIGN SAID LEASE WHEREAS, the Petaluma Community Development Commission (PCDC) has acquired this property as part of the Channel Improvement Project; and WHEREAS, PCDC wishes to utilize this resource as a rental property as part of the PCDC Affordable Housing Program; THEREFORE, BE IT RESOLVED BY THE PETALUMA COMMUNITY DEVELOPMENT COMMISSION that the real property located at #6 Payran Street, Petaluma, California is hereby authorized to be leased to Burbank Housing Management Corporation (Burbank) as a residential rental unit as outlined under the terms and conditions set forth in the agreement entitled "Lease Agreement" attached hereto as Exhibit A and incorporated herein by reference. The Executive Director is authorized to sign the lease. Adopted this 15th day of July, 1996 by the following vote: Commissioner Ave No Absent Shea X Ma uire X Vice-Chair Barlas X Chair Hilligoss X Stomne X Hamilton X ~' -~ J l ~~J M. Patricia Hilligoss, Chair ~ Attest: Patricia E. Bernard, Recording Secretary PCDC Reso. 96_16 Page 1 of i EXHIBIT A LEASE AGREEMENT #6 Paycan Str.,eet Petaluma, California: This lease is entered into this day of 1996, by and between the Petaluma Community Development Commission, hereinafter .referred to as "PCDC" and -Burbank .Housing Development Corporation, Hereinafter referred to as "Burbank"~. . VVITNESSETH WHEREAS, PCDC desires to utilize aCity-owned building. which is known as #6 Payran Street as a residential, rental property; and WHEREAS, Burbank has a Property Management Division with the expertise to sub-lease and operate •the premises as a residential rental property; NOW, THEREFORE, in consideration of the promises and mutual covenants contained in this. agreement, the parties hereby agree as follows. CONDITIONS: 1. TERM: The term of this Lease Agreement shall be for two (2) ,years commencing on August 1, . 1.996. This Lease Agreement'is terminable by a unilateral: decision by PCDC. with 60 days' notice or by mutual consent of PCDC and Burbank, by either party giving the other .party sixty (60) days' written notice of such. termination by certified or registered..,-mail as provided. in Paragraph 13 of this Lease Agreement. Upon. the termination of this lease, all alterations and additions to the building or grounds shal'1 remain the property of the PCDC. 2. RENT:. The. rent payment required_of Burbank for the lease, of this facility shall be a min,'mum of $: .0,0. per month (to be determined),- payable on the first- business day of each month upon .rent-up of the, residence. It is understood by.both parties to this lease that rent is due and payable to PCDC` by Burbank only' when the residence has been-sub-leased. It is further understood. that while Burbank shall use due diligence to maintain consistent rent-up, .Burbank shall not be held liable for rent payments to PCDC when the residence is vacant.„ In addition, Burbank may .charge to the tenant an 'additional amount to be set aside in a maintenance,.. operating, .replacement and insurance reserve:, account.. to be spent at Burbank's discretion as it deems necessary. At end of lease term, balance° of the reserve account shall be returrmed to PCDC, ~. UTILITIES: :Payment of :utilities and-;services shall. be the responsibility of Burbank or its sub- lessor, at Burbank's discretion. 4. USE: The premises shall'be used as a rental:resdence fqr a qualified household: (For purposes of - _ - this lease, a qualif ed household is defined_ as a, family of at least`.. four persons, earning no more than 80% of the: median, adjusted annually by the Department. of .Housuig and Urban Development, paying, 3:0%'of their°income on rent.) Burbank shall not change the use without the; prior written. consent of the :Executive Director of PCDC. . 5. ORDIN-ANCES AND STATUTES: Burbank agrees°to fillycomply with~all local; city; state°and . federal' laws; regulatons_and'ordinances governing=use of .the premises: . 6. ASSIGNMENT AND SUBLETTING; This lease'is designed, with the intention of `Burbank subletting'. to suitable tenants selected ~by its Property Management Division,, as sef .out in. Paragraph 4: Burbank-will utilize its standard. form .of sublease. ' 7. ~,ITTTENATVCE REPAIRS OR ALTERATIONS ` Burbank accepts the residence ~to .sub-lease "as~ -is." No other equipment; furnishings. or rehabilitation. of the premises :will be` provided by . PCDC: Burbank. or sub:-leasor shall ,at all: times maintain thepremises 'in a -habitable condition-and ~.. in a clean and sanitary ;manner including all, equipment; appliances,, and furnishings tfierein .and shall. surrender the ,same at termination, hereof ,in as good condition as received; ,nonrrial wear and tear excepted. Burbank' (or sub=leasor) shall, not: make any substantial. alterations, install any fixtures;. or make: any additions or °irnprovements to the premises without prior written, consent of ~_.. ~~ ` ~~ PCDC, and.appropriate permits. as necessary. , 8. ENTRY AND INS°PECTION: Burbank ;(and. sub',leasor) shall permit. PCDC,. its agents and/or employees to. enter the premises at reasonable tunes :and upon reasonable not'ice' for°the purpose of making necessary or convenient'repairs; or to inspect the premises for compliance' with the terms. of this~~agreement. 9.. `INDENINIFICATION:..Burbank, shall:indemnify, save, hold harmless and defend PCDC, its o fficers; employees, and:;agents~~from-and against' all losses and all .claims,. deniarids, ,suits; actions,, ' payments, arid, judgments,; including attorney's fees- and expert witness fees; arising out of or in connection:with Burbank''s operation and/or use of the premises. "` 2 Y PCDC: shall' indemni y,, save; hold harmless and defend. Burbank; 'its officers; employees; and agents .from arid, against all losses and' all claims,. demands, .suits, actions,: ° payments; and judgments, including .attorney's .fees and expert witness fees; arising out of or in connection with PCDC's operation and/or use of the premises. 10. INSUR~~ICE. Burbank, a nonprofit corporation, has maintained and shall confinue.to :maintain appropriate insurance coverage with PCDCand the City of Petaluma. For purposes of this specific residential rental unit, Burbank-shall arrange for the property to be insured against loss by fire and such other hazards, casualties, liabilities and contingencies and in such amounts and for such periods as .required by the~`Risk `IVlanager. Property insurance policies shall name PCDC and the City of Petaluma as an additional named insured. 11. LITIGATION: In the event either party hereto shall commence any legal :action arising, out of this agreement or the performance thereof, the party prevailing in said action or proceeding shal~'be entitled to recover, in addition to its court costs, reasonable attorney's fees to be fixed by the Court. 12. DESTRUCTION: If; during the term, the premises or the building and other improvements in which the premises are located'. are totally or partially destroyed from any. cause, rendering the premises totally or partially inaccessible or unusable, PCDC may restore the premises or the ~° building and other improvements in which the premises are located to substantially the same condition as they were in before destruction Such destruction shall not terminate this lease: If the restoration cannot be made, then within thirty (30) days after the parties determine that the restoration. cannot be~ made, ~ B'urbank can terminate this lease immediately by giving notice to 'PCDC... If Burbank fails to terminate this lease and if restoration is; permitted' .under existing laws, PCDC at its election can either terminate this. lease or restore the premises or the building and other improvements in which the premises are located within a reasonable time and this lease shall continue .infull force,.-and effect. If the existing laws do .not permit the -restoration,. either parry can terminate this lease immediately by giving notice to the. other party. 13. tice.~ll notices required or permitted. by this agreement, :including .notice of change of address, .shall be in writing, and given by personal delivery or sent by United States mail, postage prepaid, and addressed to the parties intended to be notified. Notice shall be deemed to be given as of the 3 • a. date of delivery in person or as of the date when deposited: in,any post office or any post:gffiee.box regularly maintained ~by'the United. States Government: .Notice shall be given-as°follows:. P.CDC: ~ Recording Secretary Petaluma Community Development Commission . `Post O~'ce B'ox 6`i - ` ~ Petaluma, California 94953 . Burbank: ' , Executive Director. Burbank.Housirig;bevelopment Co._ 3432 A. Mendocino Ave., Santa Rosa, California 95403 This agreement constitutes the entire understanding between the parti"es hereto as of its effective date. Ih1 WITNESS WHEREOF;, the parties have executed this agreement as of the day and year` first above written.. PCDC. BtIRBANK HOUSING DEV.: CORP:' By By John: L. Scharer .. Executive Director - Arnold Sternberg, ' • Executive. Director ATTEST: .Recording secretary 4 - • . APPROVED AS TO FQRNI: PCDC Counsel APPROVED: Assistant Executive Director APPROVED: Risk Manager APPROVED: Treasurer 6Paylse/wordwin 5