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HomeMy WebLinkAbout6.4 Hist Park Acquisition CITY CLERK File # D[!]~[3J-~[Q] AGENDA STATEMENT CITY COUNCIL MEETING DATE: November 6,2007 SUBJECT: ATTACHMENTS: RECOMMENDATIO~: 1) . \ 2) . . 3) , 4) 5) 6) PUBLIC HEARING - To Consider Adoption of a Resolution of Necessity to Condemn Interest in Real Property at 11837 Dublin Boulevard for Capital Improvement Program (CIP) Project No. 95556 - Dublin Historic Park Acquisition (Heritage Center Expansion) Report Prepared by: Richard C. Ambrose, City Manager 1) 2) Resolution of Necessity (with exhibits) Location Map Open Public Hearing Receive Staff Presentation Receive public comment Close Public Hearing Deliberate Adopt Resolution (requires 4/5 affirmative vote to pass) FINANCIAL STATEMENT: Estimated cost of the acquisition is available in CIP Project No. 95556 - Dublin Historic Park Acquisition (Heritage Center Expansion) DESCRIPTION: At the August 1, 2006, meeting of the Dublin City Council, the Council adopted Resolution 149-06 approving General Plan Amendments and the Dublin Village Historic Area Specific Plan (with the Dublin Village Historic Area Specific Plan attached as Exhibit A to the Resolution); the Parks and Recreation Master Plan May 2006 Update (Resolution 150-06); and, the Dublin Historic Park Master Plan (Resolution 151-06), all of which are incorporated herein by this reference. The March 2004 Update to the Parks and Recreation Master Plan anticipated a 5.3 acre parkland deficit at build out of the City and identified the need to select and designate sites for new parks to alleviate the deficit. The Dublin Square Shopping Center was one of several proposed designated sites. COPY TO: ------------------------------------------------------------------------------------------------------------- Page 1 of 4 fa.'/- ITEM NO. For years, the City Council desired to build the historic Dublin Village settlement area around Donlon Way into a cohesive district to better highlight Dublin's historic resources. The inclusion of the Dublin Square Shopping Center ("Subject Property") within the Dublin Village Historic Area Specific Plan furthered the goal of the Specific Plan to establish the City's historic downtown core. The Dublin Historic Park Project expands the existing Heritage Center and Pioneer Cemetery in the Dublin Village Historic Area around Donlon Way in Dublin. The creation of the Dublin Historic Park was seen as a chance to re-establish the City's historic heart, sited near the crossroads and springs that were Dublin's reasons for existence. An Initial Study/Mitigated" Negative DeClaration (IS/MND) was prepared in compliance with the California Environmental Quality Act (CEQA), to identify and analyze impacts for the Dublin Village Historic Area Specific Plan, including the acquisition of the Dublin Square Shopping Center. The Mitigated Negative Declaration was adopted by the City Council on August 1, 2006 (Resolution 148-06) and is incorporated herein by this reference. At the September 16, 2006 City Council meeting, the Dublin City Council approved an amendment to the 2006-2011 Capital Improvement Program for the Dublin Historic Park Acquisition Project. This Project includes and provides for the acquisition of the Dublin Square Shopping Center (APN 941-1560-007-01) so that it may be used for the park and Project. Through a purchase and sale agreement, the City acquired fee title to APN 941-1560-007-001, the Dublin Square Shopping Center, on May 9, 2007. All lease agreements were assigned to and accepted by the City. On May 1, 2007, the City adopted a Final Relocation Impact Study to approve a Relocation Assistance Program to provide assistance to the eleven (11) affected businesses within the Dublin" Square Shopping Center. At the present time, the City has successfully negotiated Lease Amendments and/or Relocation Agreements with ten (10) tenants, as follows: o Advanced Computer Technologies (All Video Repair) o A Better Restoration (Carpet Wizardry) o Chef's Touch o "City Ministries o Hope International o Debt Killer o Aunt Betty's Thrift Shop o Finishmaster, Inc. o Len's Barber Shop o Ultimate Home Solutions In order to move forward with the Project and commence Phase I of the Project, the City must demolish the main shopping center building by Spring 2008. In order to be able to do so, the City must have possession of the entire building by April 2008. Tenants Simin and Hermin Lalefar, doing business as "Consignment & More," lease space at the shopping center, specifically 11837 Dublin Boulevard. Their lease expires on November 30, Page 2 of 4 2009. Pursuant to Government Code section 7267.2, on August 15,2007, the City served its Government Code offer t~ Simin and Hermin Lalefar to acquire their property interests (leasehold interest) in the subject parcel. Consignment & More's "Commercial Lease and Deposit" provides in paragraph "17. Condemnation" that all sums which may be payable on account of any condemnation will belong solely to the Lessor; except that the Lessee will be entitled to retain any amount awarded to him or her for his or her trade fixtures and moving expenses." On or about August" 30, 2007, correspondence from Consignment & More's attorney was received regarding possible settlement. Counsel for the City responded, however, to date, the City has been unable to negotiate a settlement. To adopt a Resolution of Necessity to condemn the leasehold interest of Simin and Hermin Lalefar dba "Consignment & More" of the remainder of their lease (the "leasehold interest"), the City Council must make the following findings: 1) Whether the public interest and necessity require the project. The Project is necessary to alleviate the park land deficit under the General Plan for the City of Dublin; provide additional land for the necessary expansion of the Heritage Center and its need for additional classroom space and cemetery facilities; and, establish and preserve the historic park area. The acquisition of this sole remaining leasehold property interest in the Dublin Square Shopping Center, APN 941-1560-007-01, will enable the City to proceed with the Project to develop the Dublin Historic Park and expand the Heritage Center. 2) Whether the project is planned or located in the manner that will be most compatible with the greatest public good and the least private injury. Prior to adoption of the Project, various alternatives and sites were reviewed. The alternative adopted, acquisition of the Dublin Square Shopping Center for expansion and creation of the Dublin Historic Park and park.area, provided the largest amount of usable park land; allowed the maximum program capacity of the site; allowed a park design for more visibility (and therefore use) to the surrounding community; and, was the alternative most liked by the community and surrounding residents. 3) Whether the property sought to be acquired is necessary for the project. Expansion of the Dublin Historic Park requires the acquisition of the last remaining tenant interest in the Subject Property. 4) Whether the offer required by California Government Code ~7267.2 has been made. The offer was served on tenants Simin and Hermin Lalefar doing business as "Consignment & More" on August 15, 2007. The property tenant has the right to address the City Council on all of these proposed findings. Others may wish to address the City Council as well regarding the acquisition and issues related to it, such as relocation, goodwill, and/or amount of compensation paid or to be paid, but their comments should not be considered when making the findings that must be made to adopt the resolution. . Adoption of the resolution of necessity authorizes the City Attorney to institute an eminent domain action to acquire the leasehold interest. The actionwill be filed promptly should the City Council approve the resolution of necessity. The resolution also authorizes an application for an order of possession of the property, which is an order to allow the City to take physical possession of the real property located at 11837 Dublin Boulevard prior to final resolution of the lawsuit, for purposes of constructing the Project. Page 3 of 4 RECOMMENDATION: Staff recommends that the City Council conduct a public hearing, deliberate, and adopt the Resolution of Necessity by a 4/5 vote. 114.4019/1023631 Page4of4 \ot) ~ RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN DETERMINING THAT THE PUBLIC INTEREST AND NECESSITY REQUIRE THE ACQUISITION OF CERTAIN PROPERTY INTERESTS AND DIRECTING THE FILING OF EMINENT DOMAIN PROCEEDINGS FOR THE CAPITAL IMPROVEMENT PROGRAM (CIP) PROJECT NO. 95556 - DUBLIN HISTORIC PARK PROJECT (HERITAGE CENTER EXPANSION) DUBLIN SQUARE SHOPPING CENTER 11837 Dublin Boulevard Simin and Hermin Lalefar dba Consignment & More, Business Owners WHEREAS, at the August 1, 2006, meeting of the Dublin City Council, the Council adopted Resolution 149-06 approving General Plan Amendments and the Dublin Village Historic Area Specific Plan (with the Dublin Village Historic Area Specific Plan attached as Exhibit A to the Resolution); the Parks and Recreation Master Plan May 2006 Update (Resolution 150-06); and, the Dublin Historic Park Master Plan (Resolution 151-06), all of which are incorporated herein by this reference; and" WHEREAS, the March 2004 Update to the Parks and Recreation Master Plan anticipated a 5.3 acre parkland deficit at build out ofthe City and identified the need to select and designate sites for new parks to alleviate the deficit and the Dublin Square Shopping Center was one of the designated sites; and WHEREAS, at the September 16, 2006 City Counciltpeeting, the Dublin City Council approved an amendment to the 2006-2011 Capital Improvement Program for the Dublin Historic Park Acquisition Project. This Project includes and provides for the acquisition of the Dublin Square Shopping Center (APN 941-1560-007-01) so that it may be used for the park and Project; and WHEREAS, the City acquired fee title to APN 941-1560-007-001, the Dublin Square Shopping Center, on May 9, 2007, and all lease agreements thereto were assigned to and accepted by the City; and WHEREAS, the City has successfully negotiated Lease Amendments and/or Relocation Agreements with the ten (10) other tenants of the main'shopping center building; and , WHEREAS, it is desirable and necessary for the City of Dublin to acquire the leasehold interest of the one remaining tenant within the Dublin Square Shopping Center's main building, Page 1 of 3 Il~1.o'-9'l &J. Y I Attachment. 'r', {).~~ particularly at 11837 Dublin Boulevard, oftenants Simin and Hermin Lalefar doing business as "Consignment & More," particularly described in the "C,ommercial Lease and Deposit," Exhibit ~attachedhereto, and made a part hereofby reference, in order to construct and expand the Dublin Historic Park Project and Heritage Center (the "Project"); and WHEREAS, the City of Dublin is vested with the power of eminent domain to acquire real property for the Project by virtue of Article 1, Section 19, of the Constitution of the State of California, Government Code Sections 37350.5, 37353(a) and 40404, and Sections 1240.010, 1240.020, 1240.030, 1240.040, 1240.050, 1240.110, and 1240.120 of the Code of Civil Procedure of the State of California; and WHEREAS,pursuant to the provisions of Section 1245.235 ofthe Code of Civil Procedure of the State of California, notice has been duly given to all persons whose property interests are to be acquired by eminent domain, all of whom have been given a reasonable opportunity to appear and be heard before the City of Dublin on the following matters: (a) Whether the public interest and necessity require the Project; (b) Whether the Project is planned or located in the manner that will be most compatible with the greatest public good and the least private injury; (c) Whether the property interests sought to be acquired are necessary for the Project; (d) Whether the offer required by Government Code Section 7267.2 has been made to the business owner(s) of record; and ' WHEREAS, pursuant to the provisions of Section 7267.2 of the Government Code of the State of California, the City of Dublin forwarded a statutory offer to the owner or owners of the business to acquire the leasehold interest; and WHEREAS, the City of Dublin has satisfied the provisions of the California Environmental Quality Act (CEQA) for the Project; NOW, THEREFORE, IT IS FOUND, DETERMINED, AND ORDERED as follows: 1. The public interest and necessity require the acquisition of the leasehold interest of Simin and Hermin Lalefar in and to the above-identified property; 2. The Project is planned and located in the manner which will be most compatible with the greatest public good and the least private injury; 3. The taking of the leasehold interest in and to the subject property as more particularly described in Exhibit A is necessary for the Project; 4. The offer required by Section 7267.2 ofthe Government Code ofthe State of California has been made to the owner or owners of the leasehold interest. Page 2 of 3 ~Db ~ 5. The City Attorney of the City of Dublin or her duly authorized designee be, and she is hereby, authorized and directed to institute and conduct to conclusion an action in eminent domain for the acquisition of the interests aforesaid and to take such action as she may deem advisable or necessary in connection therewith. 6. An order for prejudgment possession may be obtained in said action and, if required, a warrant issued to the State Treasury Condemnation Fund in fulfillment of a condition to the right of immediate possession. The foregoing Resolution was adopted at a regular meeting of the City Council held on the 6th day of November, by the following vote: AYES: NOES: ABSENT: ABSTAIN: MAYOR JANET LOCKHART ATTEST: CITY CLERK 114.4019/1023854 Page 3 of 3 / ~~~ i \~ ~ ...; COMMERCIAL LEASE AND DEPOSIT RECEIVED FROM The sum 0($ 6,800.00 III' "applied as follows: Simin Lalefar and Hermin Lalefar Sixty Eioht Hundred and no/100 dollars), evidenced by Check hereinafter referred to as LESSEE , as a deposit which will belong to Lessor a~d TOTAL RECEIVED BALANCE DUE PRIOR TO OCCUPANCY Rent for the period from March 1 to March 31, 2007 $ 6,800.00 $ $ 6.800.00 Security deposit (not applicable toward last month's rent) $ $ $ Other $ $ $ TOTAL $ 6.800.00 $ $ 6.800.00 In the event this Lease is not accepted by the Lessor within 10 days, the total deposit received will be refunded. lessee offers to Lease from Lessor the premises situated in the City of Dublin , County of Alameda State of California, described as the premises located at 11837 Dublin Blvd. Dublin. CA consisting of approximately 6.800 square feet, upon the following terms and conditions: 1. TERM. The term will commence on December 1. 2006 and end on November 30. 2009. 2. RENT. The total rent will be $224.400.00. Rent for the first three months will be free to the Lessee. Rent will be at $ 6,800.00 per month payable on the 1st day of each month. All rents will be paid to Lessor or his or her authorized agent; at the fOllowing address 321 Hartz Ave. Suite 200. Danville, CA 94526 or at such other places as may be designated by Lessor from time to time. In the event rent is not paid within ~ days after due date, Lessee agrees to pay a late charge of $ ~Ius interest at --1L% per annum on the delinquent amount. Lessee further agrees to pay $ 15 for each dishonored bank check. The late charge period is not a grace period, and Lessor is entitled to make written demand for any rent if not paid when due. 3. USE. The premises are to be used for the operation of Home Furnishino Store and for no other purpose, without prior written consent of Lessor. Lessee will not commit any waste upon the premises, or any nuisance or act which may disturb the quiet enjoyment of any tenant in the building. 4. USES PROHIBITED. Lessee will not use any portion of the premises for purposes other than those specified. No use will be made or permitted to be made upon the premises, nor acts done, which will increase the existing rate of insurance upon the property, or cause cancellation of insurance policies covering the property. Lessee will not conduct or permit any sale by auction on the premises. . 5. ASSIGNMENT AND SUBLETTING. Lessee will not assign this Lease or sublet any portion of the premises without prior written consent of the Lessor, which will not be unreasonably withheld. Any such assignment or subletting without corisent will be. void and at the option of the Lessor, will terminate this Lease. 6. ...."",DINANCES AND STATUTES. Lessee will comply with all statutes, ordinances, and requirements of all municipal, state and federal authorities now in fo )Jr which may later be in force, regarding the use of the premises. The commencement or pendency of any state or federal court abatement proceeding aftE"...,dlg the use of the premises will, at the option of the Lessor, be deemed a breach of this Lease. 7. MAINTENANCE, REPAIRS, ALTERATIONS. Unless otherwise indicated, Lessee acknowledges that the premises are in good order and repair. ~essee will,at his or her own expense, maintain the premises in a good and safe condition, including plate glass, electrical wiring, plumbing and heating and air conditioning installations, and any other system or equipment. The premises will be surrendered, at termination of the Lease, in as good condition as received, normal wear and tear excepted. Lessee will be responsible for all repairs required, except the following which will be maintained by Lessor: roof, exterior walls, and. structural foundations (including any retrofitting required by governmental authorities) and: .......-...... Lessee &iII, Dwill not maintain the property adjacent to the premises, such as sidewalks, driveways, lawns; and shrubbery, which would otherwise be maintained by Lessor. No improvement or alteration of the premises will be made without the prior written consent of the Lessor. Prior to the commencement of any substantial repair, improvement, or alteration, lessee will give Lessor at least two (2) days written notice in order that Lessor may post appropriate notices to avoid any liability for liens. 8. ENTRY AND INSPECTION. Lessee will permit Lessor or Lessor's agents to enter the premises at reasonable times and' upon reasonable notice for the purpose of inspecting the premises, and will permit Lessor, at anytime within sixty (60) days prior to the expiration of this Lease, to place upon the premises any usual "For Lease" signs, and permit persons desiring to Lease the premises to inspect the premises at reasonable times.' . 9. INDEMNIFICATION OF LESSOR. Lessor will not be liable for any damage or injury to Lessee, or any other person, or to any property; occurring on the premises. Lessee agrees to hold Lessor harmless from any claims for damages arising out of Lessee's use of the premises, and to indemnify Lessor for any expense incurred by Lessor in defending any such claims. 10. POSSESSION. If Lessor is unable to deliver possession of the premises at the commencement date set forth above, Lessor will not be liable for any damage caused by the delay, nor will this Lease be void o(avoidable, but Lessee will not be liable for any rent until possession is delivered. Lessee may terminate this Lease if possession is not delivered within ~ days of the commencement term in Item 1. 11. LESSEE.S INSURANCE. Lessee, at his or her expense, will maintain plate glass, public liability, and property damage insurance insuring Lessee and Lessor with minimum coverage' as follows: 1 Million Dollars General Liability . Lessee VJiII provide Lessor with a Certificate of Insurance showing Lessor as additional insured. The policy will require ten (10) day's written notice to lessor prior to cancellation or material change of coverage. . 12. LESSOR.S INSURANCE. Lessor will maintain hazard insurance covering one hundred percent (100%) actual cash value of the improvements throughout the Lease term. Lessor's insurance will not insure Lessee's personal property, Leasehold improvements, or trade fixtures. 13. SUBROGATION. To the maximum extent permitted by insurance policies which may be owned by the parties, Lessor and Lessee waive any and all rights of subrogation which might otherwise exist. 14. UTILITIES. Lessee agrees that he or she will be responsible for the payment of all utilities, including water, gas, electricity, heat and other services delivered to the premises, except: .....**........**.*..**.**......***":...."..**.....****......****.....***.**.***................***....****............*............ . 15. SIGNS. Lessee will not place, maintain, nor permit any sign or awning on any exterior door, wall, or window of the premises without the express written c( )t of Lessor, which will not be unreasonably withheld, and of appropriate governmental authorities. . 1 b. ...:BANDONMENT OF PREMISES. Lessee will not vacate or abandon the premises at any time during the term of this Lease. If Lessee does abandon or vacate the premises, or is dispossessed by process of law, or otherwise, any personal property belonging to Lessee left on the premises will be deemed to be abandoned, at the option of Lessor. \ Exhibit A 6~~ 'Property Address 11837 Dublin Blvd. Dublin. CA 17. CONDEMNATION. If any part of the premises is condemned for public use, and a part remains Which is susceptible of occupation by Lessee, this Lease w' \ to the part taken, terminate as of the date the condemnor acquires possession. Lessee will be required to pay such proportion of the rent for the remaining te. .$ the value of the premises remaining bears to the total value of the premises at the date of condemnation; provided, however, that either party may, at his or her option, terminate this Lease as of the date the condemnor acquires possession. In the event that the premises are condemned in whole, or the remainder is not susceptible for use by the Lessee, this Lease will terminate upon the date which the condemnor acquires possession. All sums which may be payable on account of any condemnation will belong solely to the Lessor; except that Lessee will be entitled to retain any amount awarded to him or her for his or her trade fixtures and moving expenses. 18. TRADE FIXTURES. Any and all improvements made to the premises during the term will belong to the Lessor, except trade fixtures of the Lessee. Lessee may, upon termination, remove all his or her trade fixtures, but will pay for all costs necessary to repair any damage to the premises occasioned by the removal. 19. DESTRUCTION OF PREMISES. In the event of a partial destruction of the premises during the term, from any cause except acts or omission of Lessee, Lessor will not promptly repair the premises. Such partial destruction will terminate this Lease. 20. HAZARDOUS MATERIALS. Lessee will not use, store, or dispose of any hazardous substances upon the premises, except the use and storage of such substances that are customarily used in Lessee's business, and are in compliance with all environmental laws. Hazardous substances means any hazardous waste; substance or toxic materials regulated under any environmental laws or regulations applicable to the property. Lessee will be responsible for the cost of removal of any toxic contamination caused by Lessee's use of the premises. 21. INSOLVENCY. The appointment of a receiver, an assignment for the benefits of creditors, or the filing of a petition in bankruptcy by or against Lessee, will constitute a breach of this Lease by Lessee. . 22. DEFAULT. In the event of any breach of this Lease by Lessee, Lessor may, at his or her option, terminate the Lease and recover from Lessee: (a) the worth at the time of award of the unpaid rent which had been earned at the time of termination; (b) the worth at the time of award of the amount by which the unpaid rent which would have been earned after termination until the time of the award exceeds the amount of such rental loss that the Lessee proves could have been reasonably avoided; (c) the worth at the time of award of the amount by which the unpaid rent for the balance of the term after the time of award exceeds the amount of such rental loss that the Lessee proves could be reasonably avoided; and (d) any other amount necessary to compensate Lessor for all the detriment proximately caused by the Lessee's failure to perform his or her obligations under the Lease or which in the ordinary course of things would be likely to result therefrom. Lessor may, in the alternative, continue this Lease in effect, as long as Lessor does not terminate Lessee's right to possession, and Lessor may enforce all of Lessor's rights and remedies under the Lease, including the right to recover the rent as it becomes due under the Lease. If said breach of Lease continues, Lessor may; at any time thereafter, elect to terminate the Lease. These provisions will not limit any other rights or remedies which Lessor may have. 23. SECURITY. The security deposit will secure the performance of the Lessee's obligations. Lessor may, but will not be obligated to, apply all or portions of the deposit on account of Lessee's obligations. Any balance remaining upon termination will be retumed to Lessee. Lessee will not have the right to apply the security deposit in payment of the last month's rent. 24. DEPOSIT REFUNDS. The balance of all deposits will be refunded within three (3) weeks (or as otherwise required by law), from date possession is delj\l~r.ed to Lessor or his or her authorized agent, together with a statement showing any charges made against the deposits by Lessor. 2' {TORNEY FEES. In any action or proceeding involving a dispute between Lessor and Lessee arising out of this Lease, the prevailing party will be entitled to ".~,:;onable attorney fees. . 26. WAIVER. No failure of Lessor to enforce any term of this Lease will be deemed to be a waiver. 27. NOTICES. Any notice which either party mayor is required to give, will be given by mailing the notice, postage prepaid, to Lessee at the premises, or to Lessor at the address shown in Item 2, or at such other places as may be designated in writing by the parties from time to time. Notice will be effective five (5) days after mailing, or on personal delivery; or when receipt is acknowledged in writing. . 28. HOLDINC OVER. Any holding over after the expiration of this Lease, with the consent of Owner, will be a month-to-month tenancy at a monthly rent of $ 10.200.00 , payable in advance and otherwise subject to the terms of this Lease, as applicable, until either party will terminate the tenancy by giving the other party thirty (30) days written notice. 29. TIME. Time is of the essence of this Lease. 30. HEIRS, ASSIGNS, SUCCESSORS. This Lease is binding upon and inures to the benefit of the heirs, assigns, and successors of the parties. 31. TAX INCREASE. In the event there is any incr~ase during any year of the te.1111 of this LeasEl_in re;'l.I_estate taxes ov~r and above the amounf of suchiaxes assessed for the lax year during which the term of this Lease commenCes, Lessee will pay to Lessor an amount equal to 100 % of the increase in taxes upon the land and building in which the leased premises are situated. In the event that such taxes are assessed for a tax year extending beyond the term of the Lease, the obligation of Lessee will be prorated. . 32. COST OF LIVING INCREASE. The rent provided for in Item 2 will be adjusted effective upon the first day of the month immediately following the expiration of 12 months from date of commencement of the term, and upon the expiration of each 12 months thereafter, in accordance with changes in the U.S. Consumer Price Index for All Urban Consumers (1982-84 = 100) ("CPI"). The monthly rent will be increased to an amount equal to the monthly rent set forth in Item 2, multiplied by a fraction the numerator of which is the CPI for the second calendar month immedialely preceding the adjustment date, and the denominator of which is the CPI for the second calendar month preceding the commencement of the Lease term; provided, however, that the monthly rent will not be less than the amount set forth in Item 2. . 33. Intentionally Left Blank. 34. AMERICANS WITH DISABILITIES ACT. The parties are aierted to the existence of the Americans with Disabilities Act, which may require costly structural modifications. The parties are advised to consult with a professional familiar with the requirements of the Act. 35. LESSOR'S LIABILITY. In the event of a transfer of Lessor's title or interest to the property during the term of this Lease, Lessee agrees that the grantee of such title or interest will be substituted as the Lessor under this Lease, and the original Lessor will be released of all further liability; provided, that all deposits will be transferred to the grantee. 36. ESTOPPEL CERTIFICATE. (a) On ten (10) days' prior written notice from Lessor, Lessee will execute, acknowledge, and deliver to Lessor a statement in writing: [1] certifying that this Lease is unmodified and in full force and effect (or, if modified, stating the nature of such modification and certifying that this Lease, as so modified, is in full force anr' -"fect), the amount of any security deposit, and the date to which the rent and other charges are paid in advance, if any, and [2] acknowledging that there are nt )_essee's knowledge, any uncured defaults on the.part of Lessor, or specifying such defaults if any are claimed. Any such statement may be conclusively _ reht::u upon by alJY prospective buyer or encumbrancer of the premises. (b) At Lessor's option, Lessee's failure to deliver such statement within such time will be a material breach of this Lease or will be conclusive upon Lessee: [1] that this Lease is in full force and effect, without modification except as may be represented by Lessor; [2] that there are no uncured defaults in Lessor's performance; and [3] that not more than one month's rent has been paid in advance. . (c) If Lessor desires to finance, refinance, or sell the premises, or any part thereof, Lessee agrees to deliver to any .Iender or buyer designated by Lessor such financial statements of Lessee as may be reasonably required by such lender or buyer. All financial statements will be received by the Lessor or the lender or buyer in confidence and will be used only for the purposes set forth. Page 2 of 3 Property Address I 11837 Dublin Blvd. L~_,lh, CA tJdV't. 3" lITIRE AGREEMENT. The foregoing constitutes the entire agreement between the parties and may be modified only in writing signed by all parties, The fo, ..jg are a part of this Lease: Exhibit A: Floor Plan Exhibit B: Option to Extend the Lease Exhibit C: None The undersigned Lessee acknowledges that he or she has thoroughly read and approved each e provisions contained in this Offer, and agrees to the terms and conditions specified. ..'_ eo"" F ~. Da~ t!:1 . ,"",,jJ~fJ~)~,i(,, / Da~~L/-ajo Receipt for deposit acknowledged by n~-~. Date II /21) () ~ ACCEPTANCE The undersigned Lessor accepts the foregoing Offer and agrees to Lease the premises on the tenns and conditions set forth above. ~~ Lessor Date ///U/fJt. / II/Z/ I (J /0 Lfu~ (initials) Lessee acknowledges receipt of a copy of the accepted Lease on (date) Page 3 of 3 Property Address' 11837 Dublin Blvd. D~_..n. CA r--- ~J If ~... v-- .- . . (~~ Exhibit A Floor Plan cs / i Ww/ ~1'-~:(<1 I: . /~////~/, //LJ :1 ~,~ ~~' '" '~\-\lli: . U ~~ ~"~i " '.,,'~~'~ . t~ -I ~~~0';>>~~;"<'<\-~J ~ '-.. "'- ~ ~ '-.. ~ " 'r .~ '- ~'/<"'?;fi/ ~</. //~t,~~. ..'. '.'" . . / .1/'" (/ ,) //)Y . &j ./ /> / /' / / .. . q' I "''' . ..""",,\ ~.' "r' '~~ ':i,' /V.-.("<',....(' '" ",~\-,,' \. '- '" . 1 , " '. ,," '- " , " " f: I . 1 ! \ A t! ~';. I ~l ~ l~ , ---tl ) t 1- : t. t ~ . f ~ I ~ l 1 , \ L+t; of j ~. I. I, I I 'j I \. .~~ -~ Le . 4). // L~-:: / & -~_. ~ - . .-.---=-' . G;<~<.~/:>/<~'0// :->-~/ / J v//,/." n / / / /. / / / / . ; . ..- " " \ 1/ . . - . \ . {l / . " , ,'. ~ :~) ""-,,, " " "- . ...... " '....~: /. G ~ ~)=':_'\_~" ~.~~~ ' . --~~~.. .. - .- -'---~- :;;;:; - . ,. - ; .' ' .-..........- ,J,'fI''''' ~,-:t' A~~nfd- . Property Address . I 11837 Dublin Blvd. L~..Jlin. CA . COUll '6 -' Exhibit B Option to Extend Term Tenant shall have the right and option to extend the term of this Lease for one additional period of three. years commencing on expiration of the Original Term specified in Exhibit B of this Lease (the "Option to Extend Term") provided: (a) Tenant has fully and faithfully performed all the terms, covenants, and conditions of this Lease for the Original Term specified in Item 1 of this Lease, and the Tenant is not in default either at the time of exercise of the option or at the close of the Original Term of the Lease. (b) Written notice of Tenant's election to renew the term of this Lease is delivered by Tenant to Landlord at least 180 days before expiration of the Original Term specified in Item 1 of this Lease. (c) The renewed term of this Lease shall be subject to the same terms and conditions as are contained in this Lease, except that the amount of rent payable under this Lease for the renewed terms shall be adjusted based on Consumer Price Index, which shall be determined in accordance with Item 32 of this Lease.