SIXTH AMENDMENT TO LEASE WITH 800 W GALVESTON LLC L7457 FINAL.PDF
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LEASE No. L7457 C-22-15-045-1-07 SIXTH AMENDMENT TO LEASE AGREEMENT BETWEEN 800 WEST GALVESTON, LLC. AND MARICOPA COUNTY RECITALS A. 800 West Galveston, LLC, an Arizona limited liability company, as successor in interest to Son Rise Community Church, Inc. (“Lessor”), and Maricopa County, a political subdivision of the state of Arizona (“Lessee”), (collectively, “Parties”) are Parties to that certain Lease Agreement dated February 18, 2015 and subsequently amended by First Amendment dated May 24, 2015, Second Amendment dated June 7, 2017, Third Amendment dated May 20, 2020, Fourth Amendment dated June 9, 2021, and Fifth Amendment dated January 12, 2022 (collectively, “Lease”). The Lease is for premises located at 800 West Galveston St, Chandler AZ 85225, consisting of 1,527 square feet of Head Start and Early Head Start classroom space with adjoining restroom and play area (“Premises”). B. The term of the Lease expires on May 31, 2023. C. Lessee and Lessor now mutually desire to enter into this Sixth Amendment (“Amendment”) to the Lease to: (a) redefine Premises; (b) replace Exhibit “A”; (b) redefine and extend term; (c) update acceptance of Tenant Improvements; (d) replace Exhibit “C”; (e) modify rental rate; (f) modify utility rate; (g) modify Termination provision; and (h) replace Counterparts. AGREEMENT NOW THEREFORE, in consideration of the foregoing and other good and valuable consideration, receipt and sufficiency of which is hereby acknowledged, Lessee and Lessor agree to amend the Lease as follows: 1. The Recitals, by this reference, are hereby incorporated into this Amendment. 2. Capitalized terms used in this Amendment without definition shall have the meanings assigned to such terms in the Lease, unless the context expressly requires otherwise. 3. Section 1 to the Lease, as amended by Section 3 of the Fifth Amendment and Exhibit “A” of the Fifth Amendment to the Lease are hereby deleted in their entirety and replaced with the following: 1. Leased Premises. Prior to full execution of the Memorandum, defined below, the definition of Premises shall remain as is, as described in the Recitals. Upon full execution of the Memorandum, Lessor hereby leases to Lessee the Premises which shall be composed of classroom space with adjoining restrooms, playground, and meeting area as shown on the attached Exhibit “A” (collectively, “Premises”) attached hereto and incorporated herein. All references in the Lease, as amended, to “Premises” shall mean the Premises as modified pursuant to this Amendment. The Premises shall consist of the exclusive use of a playground and 3,154 square feet of building space and the non-exclusive use of 2,289 square feet of building space as described on Exhibit “A”. Lessee shall have exclusive rights to the playground and exclusive use of the classrooms and adjoining restrooms during the hours of Monday – Friday from 7:30 AM – 6:00 PM. Lessee shall have non-exclusive rights to the meeting area and adjoining restrooms during the hours of Monday – Friday from 7:30 AM – 6:00 PM. Lessor grants to Lessee for the benefit of Lessee and its employees, suppliers, contractors, customers, and invitees during the Term and any renewal term, the non-exclusive right to use, in common with others entitled to such use, the common areas which are defined as all areas and facilities outside the Premises and within the boundary line of the Property and interior utility installations within the Premises that are provided and designated by the Lessor from time to time for the general non-exclusive use of the Lessor, Lessee and other tenants of the Property and their respective employees, agents, suppliers, customers, contractors and invitees, including, but not limited to, common entrances, lobbies, corridors, stairwells, public restrooms, elevators, parking areas, loading and unloading areas, trash areas, roadways, walkways, driveways and landscaped areas (“Common Areas”). LEASE No. L7457 C-22-15-045-1-07 4. Section 2 to the Lease, as amended by Section 1 of the Third Amendment and Sections 6 and 7 of the Fifth Amendment to the Lease are hereby deleted in their entirety and replaced with the following: 2. Term. The current Term of this Lease expires on May 31, 2023 and is hereby extended, retroactively, for a period of approximately ten (10) years through May 31, 2033 (“Term”), subject to earlier termination as provided herein. Lessor hereby grants Lessee the option of renewing the Lease for one (1) additional period of five (5) years. If Lessee wants to exercise the option to renew, Lessee will provide Lessor written notice at least ninety (90) days prior to the Term expiration date. The Lease shall be renewed upon mutual agreement by both parties in writing. The Lease may be terminated by Lessee at the end of any fiscal year due to non-appropriation of funds without any penalty or liability to Lessee. This Agreement is subject to cancellation pursuant to the provisions of A.R.S. §38-511. 5. Section 3 of the Lease, as amended by Section 2 of the of the Third Amendment, Section 9 of the Fifth Amendment to the Lease, and Exhibit “C” to the Fifth Amendment are each hereby deleted in their entirety and replaced with the following: 3. Consideration for Lease. Upon Lessee’s (i) receipt of a Certificate of Occupancy issued by the City of Chandler, (ii) receipt of Fire Marshal’s non-violation inspection certificate, and (iii) acceptance of the Tenant Improvements as completed, all of which are contingent upon Lessor’s completion of all code- compliant requirements and repairs, the Parties will execute the Memorandum of Rate Increase (“Memorandum”), in substantially the same format as Exhibit “C” attached hereto and incorporated herein. Prior to full execution of the Memorandum, the monthly rental rate shall remain at nine hundred ninety dollars ($990). Upon full execution of the Memorandum, the monthly rental rate shall increase to five thousand three hundred ninety-five dollars and 25/100 ($5,395.25) for the duration of the Term. In the event the Memorandum is not fully executed on the first day of a month, such rate shall be prorated based on the number of days remaining in that month. 6. Section 7 of the Lease, as amended by Section 1 of the First Amendment, Section 1 of the Second Amendment, Section 3 of the Third Amendment, and Section 9 of the Fifth Amendment to the Lease are each hereby deleted in their entirety and replaced with the following: 7. Utilities. Upon full execution of the Memorandum the monthly utility reimbursement rate shall increase to six hundred eighty-five dollars ($685.00) for the duration of the Term. Prior to full execution of the Memorandum, the monthly utility reimbursement rate shall remain at four hundred seven dollars ($407). In the event the Memorandum is not fully executed on the first day of a month, such rate shall be prorated based on the number of days remaining in that month. Two years from the full execution of the Memorandum and every two years thereafter, Lessor may inform Lessee of a proposed increase in the monthly utility reimbursement rate. Upon Lessee’s approval, the Parties may enter into an amendment to the Lease for such increase. 7. Section 28 of the Lease, as amended by Section 8 of the Fifth Amendment to the Lease, is hereby deleted in its entirety and replaced with the following: 28. Termination. Lessor and Lessee each reserve the right to terminate this Lease without cause at any time after six (6) years from the Commencement Date upon giving at least 12-months’ prior written notice to the other. In the event Lessor or Lessee terminates this Lease during any term hereof, the rent theretofore paid by Lessee shall be prorated based on the number of days remaining in the final month of occupancy. Lessor shall refund the prorated amount to Lessee within thirty (30) days after termination. 8. Section 38 of the Lease is hereby deleted in its entirety and replaced with the following: 38. Counterparts and Electronic Signatures. The Lease may be executed in two or more LEASE No. L7457 C-22-15-045-1-07 counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. Electronic signatures shall have the same force and effect as original signatures. 9. Pursuant to A.R.S. § 35-394, Lessor warrants and certifies that it does not currently, and agrees for the duration of Lease that it will not, use: a. the forced labor of ethnic Uyghurs in the People’s Republic of China. b. any goods or services produced by the forced labor of ethnic Uyghurs in the People’s Republic of China. c. any contractors, subcontractors or suppliers that use the forced labor or any goods or services produced by the forced labor of ethnic Uyghurs in the People’s Republic of China. If Lessor becomes aware during the term of the Lease that the Lessor is not in compliance with this paragraph, the Lessor shall notify the Lessee within five (5) business days after becoming aware of the noncompliance. Failure of Lessor to provide a written certification that the Lessor has remedied the noncompliance within one hundred eighty (180) days after notifying Lessee of its noncompliance, this Lease shall terminate unless the Term of this Lease shall end prior to said one hundred eighty (180) day period. 10. The foregoing paragraphs contain all the changes made by this Amendment. All other terms and conditions of the Lease remain the same and in full force and effect, except as herein amended. THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK LEASE No. L7457 C-22-15-045-1-07 IN WITNESS WHEREOF, the Parties have fully executed this Amendment as of the last date written below. LESSOR: 800 West Galveston, LLC, an Arizona limited liability company By: Michael Gowans Date Its: Senior Executive Pastor LEASE No. L7457 C-22-15-045-1-07 LESSEE: Maricopa County, a political subdivision of the State of Arizona ____________________________________ Clint Hickman Chairman of the Board of Supervisors ATTEST: ____________________________________ Clerk of the Board Date APPROVED as to FORM: ____________________________________ Deputy County Attorney Date LEASE No. L7457 C-22-15-045-1-07 EXHIBIT “A” Premises Exclusive use 3,154 square feet of building space and 1,792 square feet of playground space, and Non-exclusive use of 2,289 square feet of building space LEASE No. L7457 C-22-15-045-1-07 EXHIBIT “C” Memorandum of Rate Increase This Memorandum of Rate Increase (“Memorandum”) is between 800 West Galveston, LLC, an Arizona limited liability company (“Lessor”), and Maricopa County, a political subdivision of the State of Arizona (“Lessee”). The Parties hereto confirm and agree as follows: 1. Lessor has completed all code-compliant requirements and repairs. 2. Lessee has received a Certificate of Occupancy issued by the City of Chandler, received a non-violation inspection certificate from the Fire Marshal, and accepted the Tenant Improvements as completed. 3. Upon full execution of this Memorandum, the monthly rental rate shall increase to five thousand three hundred ninety-five dollars and 25/100 ($5,395.25) and the monthly utility reimbursement rate shall increase to six hundred eighty-five dollars ($685.00) for the duration of the Term. In the event the Memorandum is not fully executed on the first day of a month, such rates shall be prorated based on the number of days remaining in that month. IN WITNESS WHEREOF, the Parties have executed this Memorandum of Rate Increase, as of the date written below. LESSOR: 800 West Galveston, LLC, an Arizona limited liability company By: Name of Authorized Signatory Date Its: LESSEE: Maricopa County, a political subdivision of the State of Arizona __________________________________ Director, Date Maricopa County Real Estate Department APPROVED AS TO FORM: ___________________________________ Deputy County Attorney Date