Lease Agreement

City of Chandler — Regular Meeting (2023-08-17)

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FIRST AMENDMENT TO LEASE AGREEMENT 
 
 
This First Amendment to Lease Agreement (this “Amendment”) is entered into and 
effective as of _________, 2023 (the “Effective Date”) by and between the City of Chandler, an 
Arizona municipal corporation (the “City” or the “Landlord”), and the Boys & Girls Clubs of 
the Valley, Inc, formerly known as the Boys & Girls Clubs of the East Valley, Inc., an Arizona 
nonprofit corporation (the “Tenant”), related to that certain Lease Agreement (the “Lease”) dated 
November 17, 2009, between the Landlord and the Tenant demising that certain improved real 
property generally located at 300 E. Chandler Boulevard, Chandler, Arizona 85225 and 
commonly known as the “Chandler Compadres Branch of the Boys and Girls Club of the 
Valley” (the “Premises”). 
 
Recitals 
 
 
Landlord and Tenant wish amend certain terms and to clarify certain roles and 
responsibilities of each of the parties under the Lease. 
 
Agreement 
 
NOW, THEREFORE, in consideration of the mutual promises and representations set 
forth herein, and in the Recitals hereto the parties agree as follows: 
 
1. 
Definitions. As of the Effective Date, all references to the Lease shall be deemed to refer to 
the Lease as modified by this Amendment. 
 
2. 
Term.  Paragraph 2 of the Lease is hereby deleted in its entirety and replaced with 
the following: 
 
2.   
Term.  The term (the “Term”) of the Lease is 10 years from the Effective Date 
of this Amendment. Tenant shall have the option to extend the Term for an additional 
10 year period upon the written request of the Tenant prior to the expiration of the 
original Term, which extension shall be granted by Landlord provided Tenant is not in 
default under the Lease. Landlord and Tenant shall memorialize the Term extension 
provided herein in a written amendment to the Lease  
 
3. 
Priority City Use; Reporting.  Paragraph 4 of the Lease is amended by adding the 
following subparagraphs 4.6 and 4.7 : 
 
4.6   
Priority City Use. The parties acknowledge the need for security to care for 
the children that use the Premises, including fields and buildings, during the 
Tenant’s normal hours of operation, which are Monday through Friday from ____ 
to 7:30 p.m. except holidays (“Tenant’s Normal Operating Hours”).  At any time 
outside of Tenant’s Normal Operating Hours, Tenant will make available certain 
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portions of the Premises for the Landlord’s use for public purposes, such as 
meetings, community programs, recreational activities, etc. (the “City Use 
Periods”). Tenant and Landlord will coordinate and create a monthly schedule of 
the portions of the Premises as well as the City Use Periods that are available for 
City use. If Landlord does not need all or part of the set-aside Premises during the 
City Use Periods for the City’s use, then the Landlord will so notify Tenant, and 
Tenant may then utilize the space for Tenant’s activities. If Landlord requests to use 
all or a portion of the Premises during Tenant’s Normal Operating Hours, and Tenant 
is not utilizing the space for its own activities, then the Landlord will have priority 
over any other requester during the requested time period. If the Tenant is utilizing 
the requested Premises during Tenant’s Normal Operating Hours, then the 
Landlord’s request for its use during Tenant’s Normal Operating Hours will not 
preempt Tenant’s use. 
 
4.7. 
Reporting. Tenant will comply with the reporting requirements of the 
attached Exhibit E. 
 
4. 
Amendments to Paragraph 8 of the Lease. 
 
(a)  
Paragraph 8.1(a) of the Lease is hereby deleted in its entirety and replaced with the 
following: 
 
8.1(a.)  Landlord’s Obligations. Except for damage caused by any negligence or 
intentional act or omission of Tenant, or Tenant's agents, contractors, employees, 
invitees, licensees, or members, the Landlord, at Landlord's sole expense, shall 
keep in good order, condition, and repair those items mutually agreed upon 
between Landlord and Tenant illustrated in the attached Exhibit F. 
 
(b)  
Paragraph 8.2(a) of the Lease is hereby deleted in its entirety and replaced with the 
following: 
 
8.2(a)  Tenant Obligations. Tenant, at Tenant's expense, shall maintain, service, 
replace, and keep in good repair those items mutually agreed upon between 
Landlord and Tenant illustrated in the attached Exhibit F, and any of Tenant's 
personal property or any of the Landlord's assets (defined in Paragraph 8.2(c)), and 
shall repair all damage to the Premises and the City Property caused by the 
negligent or intentional act or omission of Tenant, or the Tenant’s agents, 
contractors, employees, invitees, licensees, or members. Tenant shall give 
Landlord prompt written notice of any defects or breakage in the structure, 
equipment, fixtures, or of any unsafe condition upon or within the Premises. 
Tenant's maintenance obligation also includes providing or performing custodial 
services for the Premises except those custodial services provided by Landlord 
pursuant to Paragraph 8.1(c). 
 
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(c)  
Paragraph 8.3 of the Lease is amended by adding subparagraph 8.3(a) entitled 
“Tenant Alterations” which subparagraph shall include all of the text in the original Lease 
paragraph 8.3.  
 
(d)  
Paragraph 8.3(b) is hereby added to the Lease as follows: 
 
8.3(b) Landlord Alterations. Landlord, at Landlord’s expense, may make capital or 
other improvements or alterations that it deems necessary or desirable during the Term 
(individually and collectively the “Work”). In such event, Landlord will provide 
Tenant with as much notice as possible and will endeavor to complete the Work 
expeditiously with as little interruption to Tenant’s business as possible. Tenant will 
cooperate with Landlord in the scheduling and performance of the Work. The parties 
will amend Exhibit D to reflect any additional personal property brought onto the 
Leased Premises as a result of the alterations or improvements. 
 
5. Termination.  The following paragraph is added as to the Lease: 
 
27.  Termination. The City may terminate this Lease in whole, or from time to time in 
part, for the City’s convenience or the failure of the Tenant to fulfill the Lease 
obligations (cause/default).  The City will terminate by delivering to the Tenant a 
written Notice of Termination specifying the nature, extent, and effective date of the 
termination.  Upon receipt of the notice, the Tenant will deliver to the City all 
information, reports, papers, and other materials accumulated or generated in 
performing the contract, whether completed or in process.   
 
6. Changes to Notice Provisions. Paragraph 24 of the Lease is hereby deleted in its entirety and 
replaced with the following: 
 
24.  Notice. All notices, demands, and other communications to be given are delivered 
pursuant to this Agreement shall be in writing, and shall be deemed to have been given 
after: (a) personal delivery; (b) 1 business day from the transmission by telecopier; 
or (c) 3 business days from deposit in the United States mail, registered or certified 
mail, return receipt requested, and postage prepaid to the Notice Address or to the 
last known address of the party to whom notice is being given. The Notice Addresses 
are as follows: 
 
If to the Landlord: 
 
City of Chandler 
Neighborhood Resources Department 
235 S. Arizona Ave.  
Chandler, AZ 85225 
 
 
 
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If to the Tenant: 
 
Marcia Mintz 
Chief Executive Officer 
Boys & Girls Clubs of the Valley 
4309 E. Belleview 
Phoenix, Arizona 
85008 T 602.954.8182 
F 602.956.3320 
                              E:marcia.mintz@bgcaz.org 
 
7. Changes to Lease Exhibits. 
 
(a)  Amendment to Exhibit D - Furnishings/Computer Equipment.  Within sixty (60) days 
from the effective date of this Amendment, Tenant will provide Landlord with a revised 
Exhibit D that Landlord will review in accordance with this paragraph. The parties 
agree that upon Landlord’s acceptance, Exhibit D will be deleted in its entirety and 
replaced with the revised Exhibit D.  For the remainder of the lease term, Tenant will 
submit an updated Exhibit D annually at the time Tenant’s Final Report is submitted in 
accordance with Exhibit E.  Landlord will review the revised Exhibit D within fourteen 
(14) days of receipt.  Landlord will accept the revised Exhibit D or address any conflicts 
with Tenant which will be resolved by mutual agreement between the parties.  A formal 
lease amendment will not be required to make updates to Exhibit D following execution 
of this Amendment. 
 
(b)  Addition of Exhibit E - Reporting Requirements. The parties agree that Exhibit E – 
Reporting Requirements (attached hereto) is hereby added as an exhibit to the Lease.  
 
(c)  Addition of Exhibit F - Maintenance Responsibility Matrix. The parties agreed that 
Exhibit F - Maintenance Responsibility Matrix (attached hereto) is hereby added as an 
exhibit to the Lease. 
 
8. 
Miscellaneous. 
 
(a)  No other modifications. Except as expressly provided herein, all other provisions of the 
Lease shall remain in full force and effect. 
 
(b)   Authority. The parties represent and warrant to each other that as of the Effective Date that 
each is: (1) duly authorized under the Constitution and laws of the State to execute, deliver 
and perform the terms of the Lease and this Amendment; (2) all actions on its part for the 
execution and delivery of the Lease and this Amendment have been duly taken; (3) the Lease 
and this Amendment upon delivery, shall be valid and enforceable in accordance with their 
terms, except as enforceability may be limited by generally equitable principles and by 
bankruptcy, insolvency or other similar laws affecting creditors’ rights generally; and (4) 
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the execution, delivery and performance of the Lease and this Amendment are not in 
contravention of law or any agreement, instrument, indenture or other undertaking to which 
it is a party or by which it is bound. 
 
(b)  Counterparts.  This Amendment may be executed in several counterparts, each of which 
shall be deemed to be an original amendment binding on all the parties hereto, 
notwithstanding that all the parties shall not have signed the same counterpart. 
 
(c)  Defined Terms. The initial capitalized terms not defined in this Amendment shall have 
the meanings assigned to such terms in the Lease. 
 
(d)  Notice of Arizona Revised Statutes Section 38-511—Cancellation. Notice is hereby given 
of the provisions of Arizona Revised Statutes Section 38-511. By this reference, the 
provisions of said statute are incorporated herein to the extent of their applicability to 
contracts in the nature of this Amendment and the Lease under the laws of the State of 
Arizona. 
 
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IN WITNESS WHEREOF, the parties have executed this Amendment as of the Effective Date. 
LANDLORD: 
City of Chandler, Arizona, 
an Arizona municipal corporation 
By: _______________________ 
Mayor 
ATTEST: 
By:   City Clerk 
APPROVED AS TO FORM: 
By: ____________________ 
         City Attorney 
TENANT: 
Boys & Girls Club of the Valley, Inc., an 
Arizona nonprofit corporation 
By: _______________________________ 
     Marcia Mintz, Chief Executive Officer 
TABLE OF EXHIBITS 
Exhibit D 
Furnishings/Computer Equipment 
Exhibit E 
Reporting Requirements 
Exhibit F 
Maintenance Responsibility Matrix 
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Exhibit D  Furnishings/Computer Equipment 
 
 
To be provided within 60 days of Amendment Effective Date
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Exhibit E  Reporting Requirements 
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Exhibit F Maintenance Responsibility Matrix 
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