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HomeMy WebLinkAboutR00362 - Xtnd Lease Term - 3rd Amndmnt - Family YMCA CONTRACT NO. R00362 STAFF REPORT CITY OF PALM DESERT PUBLIC WORKS DEPARTMENT MEETING DATE: November 16, 2017 REQUEST: Extend the term of the Lease Agreement between the City of Palm Desert and the Family YMCA of the Desert to December 31, 2018 Recommendation By Minute Motion, authorize the Mayor to execute the Third Amendment to Lease between the City of Palm Desert and the Family YMCA of the Desert extending the expiration date to December 31, 2018. Strategic Plan This item does not have an impact on the goals of the Strategic Plan. Background Analysis In 1989, the Palm Desert Redevelopment Agency (RDA) and the YMCA entered into a lease agreement that provided for the following: • The RDA would construct a building that would be leased to the YMCA for an initial ten-year term with two twenty-five year extension options. • The initial term was to begin upon the issuance of the Certificate of Occupancy of the building, which occurred on March 22, 1991, making the expiration date of the initial lease term March 22, 2001. • At the end of the initial term, the YMCA could request the first of the two twenty-five year options provided that the YMCA had expanded the facility by 5,000 square feet. There is an additional 5,000 square foot expansion requirement on the second twenty-five year option. • As consideration for the lease, the YMCA would convey two areas of property on the Civic Center site to the RDA, and would expand the services offered at the facility to the benefit of the general public. In 1999, the YMCA requested an extension of the initial ten year term to fifteen years, which was agreed to by the RDA through a lease amendment dated February 11, 1990. This amendment extended the term to May 1, 2005; all other terms remained the same. In 2005, the YMCA had not expanded the facility, and requested an extension of the original lease term for another year. The YMCA felt they could better determine their position and future plans for the site in this extended timeframe. The second November 16, 2017 - Staff Report Extension of the YMCA Lease Agreement Page 2 of 2 amendment to the lease, dated August 22, 2005, extended the expiration of the initial term to May 1, 2006. On May 6, 2005, the RDA transferred ownership of the YMCA land and facility to the City. Recently the YMCA requested to negotiate new lease terms with the City. The YMCA also informed the City that their insurance carrier has requested a copy of their current lease in order to insure the building. Since the most recent lease extension expired in 2006, staff is recommending that the existing lease agreement be extended until December 31, 2018. This is to ensure that the YMCA is able to properly insure the building while allowing staff time to negotiate new lease terms with the YMCA. Fiscal Analysis The lease amendment requires the YMCA to pay the property taxes, insurance, and annual rent of $1. Since the YMCA has continued to pay both the property taxes and insurance during the period of the lease extension, there is no fiscal impact associated with this ction. Prepared by: eather Horning, Sr. Management Analyst LEGAL EVIEW DEPT. EVIEW FINANCIAL REVIEW CITY MANAGER 401111V Aati(1:06 o.ert W. Har. eaves Mark reenwood, P.E. (Ja t Moore Lauri Aylaian Attorne Director of Public Works irector of Finance Cit Manaser Tenant: Family YMCA of the Desert 43-930 San Pablo Avenue Palm Desert, California, 92260 ATTACHMENTS: Third Amendment to Lease Second Amendment to Lease Amendment to Lease Agreement Lease Agreement CONTRACT NO. R00362 THIRD AMENDMENT TO LEASE This amendment of the Lease Agreement is made and entered into this day of November 2017, by and between the City of Palm Desert, a California charter city, ("Landlord") and the FAMILY YMCA OF THE DESERT, a California non-profit corporation ("Tenant"). RECITALS A. On or about May 11, 1989, the Palm Desert Redevelopment Agency ("RDA") and Tenant entered into a certain Lease Agreement (the "Lease Agreement") covering that certain real property depicted on Exhibit A thereto ("Property"). B. The Lease Agreement provided for an initial term of ten (10) years and two options to extend the term of the lease for twenty-five (25) years each. C. On or about February 11, 1999, RDA and Tenant entered into an Amendment to the Lease Agreement to extend the initial terms of the lease for an additional five (5) five years, to expire May 1, 2005. D. On or about August 22, 2005, RDA and Tenant entered into an Amendment to the Lease Agreement to extend the initial terms of the lease for an additional one (1) year, to expire May 1, 2006. E. On or about May 6, 2005, pursuant to the dissolution of RDA and approval of the California Department of Finance, the Successor Agency of Palm Desert Redevelopment Agency transferred the Property to Landlord. F. Landlord and Tenant now desire to renew and transfer the lease and extend the initial term of the lease for one (1) additional year, to expire December 1, 2018. NOW THEREFORE, it is agreed as follows: 1. Each reference in the Lease Agreement to "Landlord" shall hence forth refer to the City of Palm Desert. 2. Paragraph 3(b) of the Lease Agreement is amended to provide as follows: CONTRACT NO. R00362 "Term of Lease. The term of this Lease shall be for the period of twenty-eight (28) years and seven (7) months commencing on the Commencement Date, May 1, 1990, and expire twenty-eight (28) years and seven (7) months thereafter (on December 1, 2018)." 3. In all other respects the Lease Agreement unchanged and in full force and effect. IN WITNESS THEREOF, the parties have executed this Third Amendment to the Lease Agreement on the day and the year first written above. CITY OF PALM DESERT BY: Jan Harnik, Mayor Attest: Rachelle Klassen, City Clerk FAMILY YMCA OF THE DESERT, A California non-profit corporation BY: Printed Name BY: Printed Name ontract NO. RD-362-2 SECOND AMENDMENT TO LEASE This amendment to the Lease Agreement is made and entered into this %1•9- day of August 2005, by and between the PALM DESERT REDEVELOPMENT AGENCY, a public body corporate and politic ("Landlord") and the FAMILY YMCA OF THE DESERT a California non-profit corporation("Tenant"). RECITALS: A. On or about May 11, 1989, Landlord and Tenant entered into a certain Lease Agreement (the "Lease Agreement") covering that certain real property depicted on Exhibit A thereto. B. The Lease Agreement provided for an initial term of ten (10) years and two options to extend the term of the lease for twenty-five(25)years each. C. On or about February 11, 1999, Landlord and Tenant entered into an Amendment to the Lease Agreement to extend the initial terms of the lease for an additional five (5)years, to expire May 1, 2005. D. Landlord and Tenant now desire to extend the initial term of the lease for one(1)additional year, to expire May 1, 2006. NOW THEREFORE,it is agreed as follows: 1. Paragraph 3(b)of the Lease Agreement is amended to provide as follows: "Term of Lease. The term of this Lease shall be for the period of fifteen (16) years commencing on the Commencement Date, May 1, 1990, and expire sixteen(16)years thereafter." 2. It is the intent of the parties that the extension of the initial terms of the lease shall also act to extend the time for exercise of the Options to Extend Term, pursuant to Paragraph 3(c) of the Lease Agreement, fora like period of time. 3. In all other respects the Lease Agreement shall remain unchanged and in full force and effect. (Signatures continue on next page) Page of 2 RMPU13LSPS\256866 1 Contract No. RD-362-2 IN WITNESS THEREOF,the parties have executed this Second Amendment to the Lease Agreement on the day and year first written above. PALM DESERT REDEVELOPMENT AGENCY BY: Buford Crites—Chair Attest: Rachelle Klassen, Secretary FAMILY YMCA OF THE DESERT, a California non-profit corporation BY:_ � 1�ob '�o�11e•a Printed N ) ,_ BY: • Printed Name (Signatures to be notarized) Page 2 of 2 RMPUBlSPS1256866 I . CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT (' . _ : 4‹..c`. ....c: r4r'•C`'-ce.. :cetcr. `e.• -c<2,cetc•e-"'r'Cecl'.cetcr s'v.• .r.Gs",c.e•cr.c.,G'r'•ClTn FA Slate of California County of Rle6 ss. 9 P L.tu ,l..tr tbly f 1JO1ar Lj \lC A �, On 1- I�OOfj before me, a.. Q _ Nar,..ro*i.a ce y 'We ooa Nary r, •c Pg. personally appeared ^OIi Ik 3&Ct ' 3�12� S Namatft a SI.r(.I r��• 0 personally known to me ?. [_•�'proved to me on the basis of satisfactory • evidence S FA h ,�_,,, to be the person() whose name(%) isiace S. h :_.,,..„ _,...y, OFFICLILSEAL subscribed to the within instrument and r c LOUISE T.LA/ABLY acknowledged to me that he/she/hey executed FA .- eft'4 COMM*1402750 G)I the same in hisRcgr/thoir authorized t^ Notary Public•Gllfornia �' zz' -•f RIVERSIDE COUNTY capacity(ies), and that by his/hefAheir ?� My Commission Expires s nature on the instrument the rson or "��' FEBRUARY 28.2007 _ the entity upon behalf of which the person(?) ($ F acted,executed the instrument. FA fi WITNE S my hand and official seal. FA 5ywer a Tlewy P.>c .� .. P 8 OPTIONAL FThough me information below is not required by law.It May prove valuable to persons retying on the document and could prevent !S fraudulent removal and reattachment of this tom,to anomer document t• P tom,Description of Attached Document q F. P. Title or Type of Document. F FA Document Date: Number of Pages: FA Signer(s)Other Than Named Above: FA FACapacity(ies) Claimed by Signer P Signer's Name FA rt�r.T.rtur•u:rn,,r cr SG7:cct F i J Individual Too oc Intrnb nee p 0 Corporate Officer— Title(s): S. J Partner —CJ Limited l General S. F. C Attorney-in-Fact I� p C Trustee '� C Guardian or Conservator r p L Other. S FA A Signer Is Representing: �, i Cc t����cr�Zi �ftiLZv �i C� cC .cc. c�i -c CiSCc Ccr�ci�iC�3Cci�ii �c �� e r 1199 wow Navy Assoc-ahem•li0O D.500 an ♦D tb.lattt•Cew..an.Cs Sip I032•...narosairturo erg Prod No S037 Poe.Cal ta.r,..,WA 7e 8e77 AMENDMENT TO LEASE AGREEMENT This Amendment to Lease Agreement is made and entered into this day of March, 1999, by and between the PALM DESERT REDEVELOPMENT AGENCY, a public body corporate and politic ("Landlord") and the FAMILY YMCA OF THE DESERT, a California non-profit corporation ("Tenant") . Recitals : A. On or about May 11, 1989, Landlord and Tenant entered into a certain Lease Agreement (the "Lease Agreement") covering that certain real property depicted on Exhibit A thereto. B. The Lease Agreement provided for an initial term of ten (10) years and two options to extend the term of the lease for seriatim periods of twenty five (25) years each. C. The parties desire to extend the initial term of the lease for an additional five (5) years. NOW THEREFORE, it is agreed as follows: 1 . Paragraph 3 (a) is amended to provide as follows: Commencement Date . The Commencement Date of this Lease is May 1, 1990. 2 . Paragraph 3 (b) of the Lease Agreement is amended to provide as follows: Term of Lease. The term of this Lease shall be for the period of fifteen (15) years commencing on the Commence- ment Date and expiring fifteen (15) years thereafter. 3 . It is the intent of the parties that the extension of the initial term of the lease shall also act to extend the time for exercise of the Options to Extend Term, pursuant to paragraph 3 (c) of Lease Agreement, for a like period of time. 4 . Paragraph 24 of the Lease Agreement is amended hereby to insert the address of the Tenant for service of notices, as follows : 43930 San Pablo Avenue Palm Desert, California 92260 5 . In all other respects the said Lease Agreement shall remain unchanged and in full force and effect . IN WITNESS WHEREOF, the parties have executed this Amendment to Lease Agreement on the day and year first above written. PALM DESERT REDEVELOPMENT AGENCY By: Chair Attest : Secretary FAMILY YMCA OF THE DESERT, a California non-profit corporation By By --2- 2/18/99 CONTRACT NO. RI)-3 j_ LEASE AGREEMENT THIS LEASE AGREEMENT is made and entered into as of the llth day of May 19 89 . by and between the PALM DESERT REDEVELOPMENT AGENCY . a public body corporate and politic , and the FAMILY YMCA OF THE DESERT, CALIFORNIA . a California nonprofit corporation . WHEREAS . the C ' ty ., f Palm Desert and the Palm Desert Redevelopment Agency seek to provide their citizens with the opportunity to participate in organized recreational activities . WHEREAS . the Fami i y YMCA of the Desert ( Family YMCA ) has been incorporated as an independent YMCA since July 1982 . affiliated with the YMCA of the United States of America ( YMCA ) . which is respected country-wide for its long history ( 135 years ) of community service in providing programs that promote good health , strong families , youth leadership , community development . and international understanding at over 2000 locations in 50 states . • WHEREAS . Faintly YMCA, is a nonprofit o.rga.n i zat i qn .whose programs are availab ; e to everyone reaardless of race , creed , religious belief , nationality , age . sex , physical capacity , or economic status . WHEREAS . the Family YMCA through its affiliation with the YMCA . receives valuable resource material and advice on program development , management , and coordination . WHEREAS . the City of Palm Desert and the Palm Desert Redevelopment Agency are engaged in developing a civic center site of approximately 63 acres on the northeast corner of Frea Waring Drive and San Pablo Avenue . WHEREAS . as a means of assisting the City of Palm Desert with community activities . the Family YMCA is to become a part of the Civic Center Site for the Following reasons : - It is a community-based tax exempt organization with a local , volunteer Board of Directors , and it is a member agency of the United Way of the Desert . - It has the ability to raise private funding to finance programs and future Facilities . - It intends to exchange ownership of two acres in the Civic Center site For a long - term lease on this Facility . • vmcaleas . aam Rev . 5- 10-99 • - As a nonprofit organization . it can provide re reat ' en service at an affordable cost . - It has demonstrated its ability to recruit large numbers of volunteers For program delivery and Fundra ' sIna . - It has an established history of providing qua ' ity recreational programs to the residents of Paim Desert . I . Definitions As used herein , the following terms shall have the meanina ascribed thereto . unless the context requires otherwise . ( a ) "Adjustment Date" means January 1 of each calendar year of the term of this Lease . ( b ) "Commencement Date" means the date upon which the term of this Lease commences . ( c ) " Improvements " means buildings and other. structures .• 'excavations . paving and andscaping and other improvements nereafter erected or placed upon the Property by the Landlord . plus a I Fixtures , including trade Fixtures , if any , attached thereto , which Improvements are described in Exhibit " " attached hereto and incorporated herein by reference . Id ) " Include" , " includes " or " Including" means including without limitation . e " index " means the L . S . Bureau of Labor Statistics Consumer Price Index for Ail Urban Consumers , Los Angeles- Anahe ' m-Riverside Area ( 1982-84 = 100 ) , All Items . f "Landlord" means the Pa ' m Desert Redevelopment Agency . . c . " Lease " or " Lease Agreement " means this Lease Agreement . ( h ) "Premises" means the Property and the Improvements and any other improvements to the Property From time to time constructed thereon . "Property" means that certain real property in the City of Palm Desert . California described in Exhibit "A" attached hereto and incorporated herein by reference . " Property Tax Costs" means the total of ail real and persona ' property taxes , assessments , possessory interest taxes . icense fees , commercial rental taxes . levies , penalties or taxes ymcaieas . agm Rev . 5- 1G-8c( 2 imposed by any authority having the direct or indirect power to tax . including any city . county , state and federal government , and any fire protection . police . road maintenance , refuse removal . school , agricultural , lighting , drainage and other improvement district thereof , levied against any legal or equitable interest of the Landlord or the Tenant in the Premises ( including land . building . improvements and personality ) . (k ) "State" means the State of California. ( I ) "Tenant" means the Family YMCA of the Desert . Tenant is a charitable organization as defined by Internal Revenue Code Section 501 (c ) ( 3 ) . (m ) "YMCA" means the Young Men ' s Christian Association . 2 . Demise of Premises The Landlord hereby agrees to lease and demise the Premises to the Tenant , and the Tenant hereby hires such Premises From the Landlord. on the terms and conditions hereinafter set forth . The Landlord hereby agrees to improve the Property with the Improvements , and to deliver said . Property and the Improvefnen'ts• :hereon to ' the Tenant in a subst'antia1ly completed condition within twenty - Four ( 24 ) months following the date hereof . Development of the plans and specifications shall be a joint effort of the Landlord , Tenant and Project Architect . 3 . Term and Commencement Date (a ) Commencement Date . The Commencement Date of this Lease shall be the date of issuance of a Final Certificate of Occupancy For the Improvements by the City of Palm Desert . If the City of Palm Desert has not issued a certificate of occupancy within two years from the date of this Lease . this Lease may be terminated at the option of Tenant . If Tenant opts to terminate under this section . Landlord shall be given the option of returning the property conveyed under Section 4 ( b ) or consideration of payment in the amount of $250 . 000 . ( b ) Term of Lease . The term of this Lease shall be for a period of ten ( 10 ) years commencing on the Commencement Date . and expiring ten years thereafter . ( c ) Options to Extend Term. ( 1 ) The Tenant shall have two ( 2 ) options to extend the term of this Lease for periods of twenty-Five (25 ) years each . The Tenant may exercise each option if and only if , in each instance , the Tenant has theretofore expanded the improvements at the Property by an additional 5 , 000 square feet of usable area For each option , to the end that the total square ymcaleas . agm Rev . 5- 10-89 3 Footage of the Premises shall have been increased by 10 . 000 square feet . All such improvements shall be constructed only with the Landlord ' s prior written consent First had and obtained pursuant to Section 10 hereof. Landlord shall make available property contiguous to the YMCA faciities For such expansion . ; ii ) The extension options shall be personal to the Tenant and may not be exercised or be assigned , voluntarily or involuntarily , by or to any person or entity other than the Tenant ; no extension option herein granted to the Tenant shall be assignab a separate and apart from this Lease . The Tenant shalt not have the right to exercise the extension options , notwithstanding anything set forth above to the contrary : (a ) during the time commencing from the date the Landlord gives to the Tenant a written notice that the Tenant is in default under any provisions of this Lease . and continuing until the default alleged in said notice is cured ; and ( b ) during the period of time commencing on the day after a monetary obligation to the Landlord is due from the .Tenant and unpaid con.t i nu ing . .unt i I . the obligation ` 5 caid . The period of time within which the extension options may be exercised shall not be extended or enlarged by reason of the Tenant ' s inability to exercise such extension options prior to satisfaction of the Foregoing conditions precedent . Option shall be exercised by written notice delivered to Landlord not less than six months prior to expiration term of the Lease . 4 . Rent and Additional Consideration (a ) The Tenant agrees to pay to the Landlord as rent For the Tenant ' s use of the Premises and the Tenant ' s rights hereunder , without notice or demand and without deduction or offset . the sum of ONE DOLLAR ( $ 1 . 00 ) per year . Rent shal commence and shall become due and payable in advance on the First day of each calendar year of the term . ( b ) As additional consideration for this Lease , the Tenant agrees to convey to the Landlord concurrently with the parties ' execution of this Lease certain real property described in Exhibit "A " , attached hereto and incorporated herein by this reference . Said conveyance shall be evidenced by a grant deed in form and substance acceptable to the Landlord , and the Land 'ord ' s interest in such property shall be evidenced by a CLTA Owner ' s Policy of Title Insurance acceptable to the Landlord issued by a title acceptable to Landlord , evidencing the Landlord ' s fee simple interest in such property free and clear of all liens . ymcaleas . agm Rev . 5- 10-69 4 encumbrances , easements . covenants . conditions and restrictions of record except For non-monetary items approved by the Landlord prior to the issuance of the poi ' cy of title insurance . 5 . Use of Premises -- Fees and Charges (a ) The Premises shall be used solely as a nonprofit institution , available to the general public , for the usual and customary services and faci ' ities provided by the Family YMCA including athletic facilities , recreational programs and activities , and food and beverage services as outlined in Exhibit B ( YMCA Programs ) . Once a year . no less than two months before the beginning of the Tenant ' s fiscal year , Tenant shall submit a schedule of the availability of all facilities and of all programs and activities to be conducted on the Premises . including the time , date and duration of such programs and activities . Such schedule shall be submitted to the Landlord for prior written approval and any substantial changes to or deviations from such schedule thereafter must be approved in writing by the Landlord . (b) The Tenant shall be responsible for setting fees and •charges For participation in its various • progtams, and ac.tiviti.es. •conduct �a on the ? remises or for use of the Premises with the Landlord ' s approval provided , however , that membership in the Family YMCA shall not be required for any person to use the Premises or to participate in programs and activities conducted on the Premises . A nonmember fee may be established for the use of the Premises or for any program or activity conducted on the Premises , which shall be based on the "break- even " cost of operation For the use of the Premises or for the program or activity . Revenues from such nonmember fees shall not be used to subsidize membership fees . It is the Landlord ' s and Tenant ' s goal to permit participation by all socio-economic groups in the programs and activities conducted on the Premises . "Break-even" cost of operation shall include but not limited to all direct or indirect costs such as overhead and amortization of capital improvements . The Tenant ' s schedule of fees For nonmembers shall be submitted to the Landlord For prior written approval and any substantial changes to or deviations from such schedule tnereafter must be approved ' n writing by the Landlord . ( c ) The Tenant here ' n covenants by and for the Tenant and the Tenant ' s successors and assigns . and all persons claiming under or through the Tenant . and this Lease is made and accepted upon and is subject to the Following conditions : That there be no discrimination against or segregation of any person or group of persons , on account of age . race , color , creed, religion . sex . marital status . national prig ' n , political affiliation , physical handicap or ancestry , in the subleasing, transferring, use of occupancy , tenure or enjoyment of the Premises or in the participation in any of the programs and activities conducted or vmcaleas . agm Rev . 5- 10-89 5 permitted by the Tenant on the Premises nor shall the Tenant , or any person claiming under or through the Tenant , establish or permit any such practice or practices of discrimination or segregation . (d) The Tenant shall hire employees without discrimination as to age , race , color , creed , religion . sex , marital status . national origin , politica ' affiliation , physical handicap or ancestry . ( e ) Nothing in this Lease implies permission to conduct any business or allow any other occupancy or use except for the purposes stated . The concept of wholesome , affordable Family recreation shall be promoted. Any nuisance shall be a breach of this Lease . Disorderly or objectionable conduct by the Tenant or those occupying the Premises with its permission , shal ' be cause For termination of this Lease Agreement . Advertisements , signs , brochures , and promotional publicity shall not misrepresent in any way the services provided , or the status of the Lease Agreement . ( f ) The Tenant shall at all times during the term of this Lease , at its sole cost and expense : ( i ) Furnish , install and maintain in the Premises al of the Tenant ' s personal property , furniture , fixtures and equipment , which shall be of the highest quality, necessary For the operation of the Premises for the purposes described in Section 5 (a ) ; ( ii ) Maintain the Premises in a safe , secure . clean . neat . sanitary and orderly condition of the highest quality , it being understood that no use shall be made or permitted of the Premises or any part thereof , nor any acts be done , which wi I violate or make inoperative , any insurance policy at any time held by or in any way For the benefit of the Landlord pursuant to any provision of this Lease ; ( iii ) Insure that there shall not be kept , used or sold in , upon or about the Premises any hazardous or toxic materials . chemicals , gasoline . distillate or other petroleum products or any other substance or material of an explosive , inflammable . hazardous , toxic . or radioactive nature which may endanger or damage any part of the Premises , its occupants or invitees , or present any unusual fire . explosion or other damaging or dangerous hazard, or present the possibility of contamination by toxic or hazardous waste ; ( iv ) Comply with all the rules and regulations of the National Fire Protection Association , the applicable Insurance Service Office and any similar bodies ; ymcaleas . agm Rev . 5- 10-89 6 ( v ) Comply prompt + y with all applicable statutes . o rdinances , rules , regulations , orders , covenants and restrictions of record . and requirements in effect during the term or any part of the term hereof, regulating the use of the Premises by the Tenant . The Tenant shall not use or permit the Premises or any portion of the Premises to be improved , developed . used or occupied in any manner or for any purpose that is in any way in violation of any valid law . ordinance or regulation of any federal , state . county or local government agency body or entity . The Tenant shall not use nor permit the use of the Premises in any manner that will tend to create waste or a nuisance ; ( vi ) Operate From the Premises a YMCA facility of the h ighest quality at its sole cost and expense , with due diligence . care and efficiency . in accordance with all applicable provisions of law and regulations which are now or which may hereafter be in force . The Tenant further undertakes to provide at ail times all necessary and proper furniture , furnishings . fixtures . machinery, equipment , supplies and other tangible personal property of sufficient quantity and of the highest quality . and .adequate personnel ( both as to number and with sufficient technical aua l i f t cat i ons ) to properly maintain and operate a :'..M.CA fac,i l i t t . From the Premises ; ( vii ) Continuously and uninterruptedly throughout the term of the Lease during scheduled hours keep the Premises open For use as a Y . M. C . A . facility . The Tenant ' s schedule of hours when the Premises will remain open to the public shall be submitted to the Landlord . For prior written approval and any substantial chances to or deviations from such schedule thereafter must be approved in writing by the Landlord ; and ( viii ) Maintain accurate records of the costs and ✓ evenues associated with operation of the Premises and the various programs and activities conducted on the Premises . Such records shall be available to the Landlord For inspection . The Tenant shall annually fl ' e with the Landlord a copy of its audited Financial statements . ( ix ) Make available for public use all parking areas included in this Lease . ( g ) The Landlord is to act as a catalyst to provide recreational facilities to provide the Tenant with exposure to conduct fundraising campaigns . The Tenant shall submit to the Landlord a program by April 1 . 1990 , which will outline the Tenant ' s proposed fundraising campaign program for the expansion facility . Such a program wi ' 1 be submitted to the Landlord for their review and approval or disapproval . The Tenant shall use its best efforts to finance and construct such Facility . ymca eas . agm Rev . 5- 10-89 7 ( i ) Landlord shall evaluate Tenant on an annual basis to determine if the provisions of Section 5 of this Lease have been carried out with due diligence , care and efficiency . ( ii ) The first evaluation will be accomplished three ( 3 ) years from the date of this agreement with annual evaluation thereafter . ( iii ) Landlord will submit its Findings to the Tenant . If a deficiency exists , the Landlord shall notify the Tenant of the deficiencies and allow the Tenant a reasonable amount of time to submit a program eliminating such deficiencies . ( iv ) The Tenant shall cooperate in the evaluation process and shall provide all materials and labor necessary to develop an objective evaluation . 6. The Tenant ' s Obligations at the End of the Term Upon the expiration or sooner termination of this Lease , if the Tenant has faithfully and fully performed all of the terms , conditions and covenants of this Lease to be performed by the Tenant . but not. otherwise . the Tenant, shaj1 , at •its sole cost-. and- expense . remove from the Pre`mi ses all of its. 'movable trade fixtures and equipment , and such other items the Tenant has installed or placed on the Premises . and the Tenant shall repair all damage to the Improvements resulting from such removal . The Tenant shalI thereupon surrender the Premises and the Improvements in the same condition as they were wnen the improvements were first completed , reasonable wear and tear and damage by any insured casualty excepted , clean and free of debris . The Tenant shall repair any damage to the improvements occasioned by the installation or removal of the Tenant ' s trade Fixtures . Furnishings and equipment . if the Tenant has not fully and faithfully performed all the terms , conditions and covenants of this Lease to be performed by the Tenant . the Tenant shall nevertheless remove its personal property From the Premises in the manner aforesaid within fifteen ( 15 ) days after receipt of written direction to do so From the Landlord . In the event the Tenant shall fail to remove any of its personal property as Provided herein, the Landlord may , but is not obligated . at the Tenant ' s expense and with interest at the highest rate then allowed to be charged by non-exempt lenders under the usury laws of the State from the date of payment by the Landlord , remove all such personal property not so removed and repair all damage to the Improvements resulting From such removal and may . but is not obligated to , at the Tenant ' s expense , store the same in any public or private warehouse , and the Landlord shall have no liability to the Tenant for any loss or damage to the Tenant ' s property caused by or resulting from such removal . Notwithstanding anything to the contrary otherwise stated in this Lease . the Tenant shall leave the air lines , power panels , vmcaleas . aom Rev . 5- 10-89 8 electrical distribution systems , lighting fixtures . space heaters , air conditioning , plumbing and Fencing on the Premises ' n good operating cond ' tion , 7 . Utilities The Tenant snail pay prior to delinquency all charges and expenses for water . gas , heat , lights , power , sewage , telephone service and other utilities and services supplied to the Premises and for the removal of garbage and rubbish From the Premises together with any taxes thereon . 8 . Repairs and Maintenance (a ) The Tenant ' s Obligations . The Tenant shall keep in good order , condition and repair , and replacement , if necessary. the Premises and every part thereof , structural and nonstructural ( whether or not such portion of the Premises requiring repair , or the means of repairing the same . are reasonably or readily accessible to the Tenant and whether or not the need for such repairs occurs as a result of the Tenant ' s use , any prior use , the elements , or the age of such portion of the Premises ) including, without limiting the generality of the Foregoing , ail plumbing , heating, a.'r- c 5nd i c i on i ng ( the -Tenant sha 1 ' procure and- maintain at the Tenant ' s expense an air conditioning system maintenance contract ) ventilating , electrical , lighting , facilities and equipment within the Premises , fixtures , walls ( interior and exterior ) , floors , windows . doors , plate glass and skylights located within the Premises , and all landscaping , driveways . parking lots , Fences and signs located on the Premises and sidewalks and parkways adjacent to the Premises . ( b ) The Landlord ' s Obligations . Except For the obligations of the Landlord set forth in Section 16 , it is intended by the parties hereto that the Landlord have no obligation , in any manner whatsoever . to repair and maintain the Premises nor the equipment therein , whether structural or nonstructural , all of which obligations are intended to be that of the Tenant under Section 8 (a ) hereof. The Tenant expressly waives the benefit of any statute now or hereafter in effect which would otherwise afford the Tenant the right to make repairs at the Landlord ' s expense or to terminate this Lease because of the Landlord ' s failure to keep the Premises in good order , condition and repair . ( c ) The Landlord ' s Rights . ] f the Tenant fails to perform timely the Tenant ' s obligation under this Section 8 or under any other section of this Lease . the Landlord may at its option ( but shall not be required to ) enter upon the Premises after ten ( 10 ) days ' prior notice to the Tenant ( except in the case of an emergency , in which case no notice shall be required ) , and perform such obligations on the Tenant ' s behalf and put the Premises and the improvements in good order . condition and ymcaleas . agm Rev . 5- 10-89 9 repair , and the c;st thereof together with interest thereon at the maximum rate then al ; owable to be charged by nonexempt enders under the usury laws of the State shall become due and payable as additional rental to the Landlord immediately upon receipt of the Landlord' s written demand therefor . 9 . Taxes (a ) The Tenant shall be liable for and shall pay before delinquency ( and upon demand by the Landlord , the Tenant shall Furnish the Landlord with satisfactory evidence of the payment thereof ) as additional rent during the term of this Lease all Property Tax Costs and assessments arising with respect to the Premises For each calendar year . In the event this Lease shall commence or terminate on any date other than the last day of a calendar year . the additional rent payable hereunder by the Tenant for the calendar year in which this Lease commences or terminates shalt be prorated in the ratio that the number of days of the Lease term Falling within said calendar year bears to 365 days . The Tenant shall pay all Property Tax Costs to the appropriate taxing authorities . . ( b ) ln • addition to the Property Tax . Costs, described in •Section 9 (a ) hereof . the Tenant shall be liable for and shall pay before delinquency (and , upon demand by the Landlord, the Tenant shall Furnish the Landlord with satisfactory evidence of the payment thereof ) as additional rent during the term of this Lease all taxes and assessments of whatsoever kind or nature , ana penalties and interest thereon . if any , levied against the Tenant ' s furniture . trade fixtures and equipment . and any other personal property of whatsoever kind and to whomsoever belonging situate or installed in and upon the Premises . whether or not affixed to the realty . For the purpose of determining the amount of such taxes or assessments , Figures supplied by the county assessor ' s office or other taxing authority as to the amount thereof shall be conclusive . 10 . Alterations and Additions (a ) The Tenant shall not make any alterations whatsoever to the structural , exterior , mechanical , systemic or electrical portions of the Premises or the improvements . Except as herein provided to the contrary , the Tenant , at its sole cost and expense , shall have the right to make, with the Landlord' s prior written consent First had and obtained. nonstructural alterations to the interior of the Improvements . so long as such alterations do not reduce or impair the value of the Improvements . and as long as alterations are made free of liens . Unless the Landlord requires their removal , all alterations or additions shall , upon the expiration or sooner termination of this Lease . become a part of the realty and be the sole property of the Landlord . Under no circumstances may any alteration of the Premises or the ymcaleas . agm Rev . 5- 0-89 10 improvements impair the permitted use of the Premises as more fully set forth in Section 5 (a ) hereof . ( b ) In making any alterations requiring the Landlord ' s consent , the Tenant she : , comply with the following : ( i ) The Tenant shall submit copies of the preliminary plans and working drawings (and reasonably detailed final plans and specif ` cations and working drawings if the proposed alterations cumulatively cost Twenty- five Thousand Dollars ( $25 . 000 ) or more ) of the proposed alterations and the name of its contractor ( ii ) The alterations shall not be commenced until twenty ( 20 ) days after the Landlord has received written notice From the Tenant stating the date the installation of the alterations is to commence so that the Landlord can post and record an appropriate notice of nonresponsibility . Notice is hereby given to all persons furnishing labor or materials to the Tenant that no mechanics ' , materialmen ' s or other lien sought to be taken on the Premises shall in any manner affect the right to or interest of the Landlord therein ; • • • ( iii ) The a ' terations shal I be approved by al appropriate government agencies , and all applicable Permits and authorizations shall be obtained before commencement of the alterations ; ( iv ) All alterations shall be completed with due diligence in compliance with all plans and specifications and working drawings and al ) applicable laws . and such alterations shall not reduce or impair the value of the Premises or the improvements ; ( v ) Before commencing the alterations and at all times during construction , the Tenant ' s contractor or the Tenant shall maintain insurance as required and approved oy the Landlord ; and ( vi ) If the estimated cost of the alterations exceeds One Hundred Thousand Dollars ( $ 100 , 000 ) , before the commencement of the alterations , the Tenant , at its sole cost and expense , shall Furnish to the Landlord a performance and completion bond issued by an insurance company qualified to do business in the State in a sum equal to the cost of the alterations ( as determined by the construction contract between the Tenant and its contractor ) guaranteeing the completion of the alterations free and clear of all liens and other charges and in accordance with the plans and specifications . vmca ) eas . agm Rev . 5- 10-89 11 ( c ) IF during the term hereof . any change , alteration . addition or correction shall be required by any law , rule. or regulation of any governmentai authority to be made in or to the Property, the Premises , the improvements , or any portion thereof . the Landlord shad First give written consent thereto. and sucn change , alterat ' on , addition or correction shall then be made by the Tenant at its sole cost and expense in accordance with plans and specifications approved by the Landlord. The Tenant sha I , at its sole cost and expense , comply with any and all requirements pertaining to the Premises of any insurance organizations or companies necessary for the maintenance of all policies of insurance covering the Premises and appurtenances as required herein to be maintained by the Tenant . II . Mechanics ' Liens (a ) The Tenant shall pay or cause to be paid the total cost and expense for all work performed or materials furnished to the Premises other than costs and expenses arising from installation and construction of the initial Improvements . No such payment shall be construed as rent . The Tenant shall keep the Premises free and c , ear of ail mechanics ' liens and materialmen ' s liens . The Tenant shall not suffer or permit to be enforced, against the Premises or any part of the Premises any Mechanics ' . materialmen ' s , contractors ' , or subcontractors ' lien arising from any work of improvement , however it may arise , other than costs and expenses arising From installation and construction of the initial Improvements by the Landlord. The Tenant shall defend and indemnify the Landlord and the Premises against all liability and ' oss of any type arising out of work performed on the Premises by the Tenant , together with reasonable attorneys ' fees and al costs and expenses incurred by the Landlord in negotiating , settling , defending , or otherwise protecting against such claims . ' b ) On completion of any work of improvement during the term . the Tenant shall file or cause to be filed a notice of comp ' eti ,:7n . The Tenant hereby appoints the Landlord as the Tenant ' s attorney- in- Fact to Fie the notice of completion on the Tenant ' s failure to do so after the work of improvement has peen substantially completed . ( c ) if the Tenant desires to contest any claim of lien . it shall within fifteen ( 15 ) days after the filing of the lien For record furnish the Landlord with cash security in the amount of the cairn of lien , plus estimated costs and interest , or shall furnish the Landlord with a bond of a responsible corporate surety in the same amount conditioned upon the discharge of such Hen , in the event the Tenant fails or refuses to furnish the same within sard Fifteen il5 ) day period. vmcaleas . aam Rev . 5- 10-89 ( d ) immediately upon entry of final judgment in any such action in which the Tenant contests any such claim of lien , and if such judgment shall establish the validity of the lien, or any part thereof, and within fifteen ( 15 ) days after the Filing of any lien for record which the Tenant does not contest . the Tenant shall fully pay and discharge such judgment or lien , l as the case may be , and the Tenant sha ' I reimburse the Landlord upon demand for any and all loss , damage and expense , including reasonable attorneys ' Fees , which the Landlord may suffer or be put to by reason thereof . Nothing contained herein shall prevent the Landlord , at the cost and for the account of the Tenant , From satisfying any such judgment or lien , as the case may be , in the event the Tenant fails or refuses to satisfy the same as herein provided . (e ) Should any claim of lien be filed against the Premises , or any action or proceeding be instituted affecting the title to the Premises , the Tenant shall give the Landlord written notice thereof immediately after the Tenant obtains knowledge thereof. 12 . Entry by the Landlord The Landlord . and its authorized agents and representat-i-ves , shall be entitled to enter the Premises at 'a l l reasonable times For the purpose of serving, posting or keeping posted thereon such notices as the Landlord may deem necessary or appropriate for protection of the Landlord and its interest in the Premises , for the purpose of inspecting the Premises or any portion thereof , and for the purpose of making necessary repairs to the Premises and performing any work therein or thereon which the Landlord may elect to make hereunder to comply with any laws , ordinances , rules , regulations or requirements of any public authority or any applicable standards that may from time to time be established by the Board of Fire Underwriters , the local Insurance Service Office , the Fire Protective Association . the California Fire Rating Bureau , or any similar body, or which the Landlord may deem necessary or appropriate to prevent waste , loss , damage of or deterioration to or in connection with the Premises . Nothing contained herein shall impose or be deemed to impose any duty on the part of the Landlord to do any work of repair , maintenance , reconstruction or restoration which , under any provision of this Lease . is required to be done by the Tenant ; and the performance thereof by the Landlord shall not constitute a waiver of the Tenant ' s default in failing to do the same . The Landlord may . during the progress of any work on the Premises , keep and store upon the Premises all necessary materials , tools , equipment . The Landlord shall not in any event be liable for inconvenience , annoyance , disturbance , loss of business or quiet enjoyment , or other damage or loss to the Tenant by reason of making any such repairs or performing any such work upon the Premises or on account of bringing materials , supplies and equipment into , upon or through the Premises during ymcaieas . agm Rev . 5- 10-89 13 the course thereof . and the obligations of the Tenant under this Lease shall not thereby be affected in any manner whatsoever . The Landlord sha ) i , however , in connection with the performance of any such work , cause as little inconvenience , disturbance or other damage or loss to the Tenant as may be reasonably possible under the circumstances . 13 . Indemnity The Tenant covenants with the Landlord that the Landlord shall not be liable for any damage or liability of any kind or for any injury to or death of persons or damage to property of the Tenant , its employees , agents , invitees , customers , subtenants , patrons , guests , or any other person , during the term of this Lease , from any cause whatsoever , by reason of the use . occupancy and enjoyment of the Premises by the Tenant or any person thereon or holding under the Tenant , and that the Tenant will indemnify , protect , defend (at the Tenant ' s expense and with counsel satisfactory to the Landlord ) , and hold the Landlord and the Premises free . clear and harmless from any and all liability , loss , costs , charges , penalties , obligations , expenses , attorneys ' fees , litigation , judgments , damages , liens , claims and demands of any kind whatsoever in connection with , arising • out o•f or by reaSJn :of : . (,i ) any v•iofat•lon of lGw , •ord•inance or. governmental regulation by the Tenant , its agents , employees , servants , contractors , subtenants , licensees . concessionaires , customers or business invitees ; or ( ii ) on account of any repairs and alterations which the Tenant may make to the Premises ; or ( iii ) by reason of any real or claimed injury or damage however occurring ( A ) to any person or persons whomsoever ( including the Tenant , its agents . employees , servants , contractors , subtenants , licensees , concessionaires , patrons , guests , customers . subtenants , invitees ) , or ( 8) to property of any kind whatsoever and to whomsoever belonging ( including the Tenant , its acen:s . employees , servants , contractors , subtenants . licensees . concessionaires , subtenants . customers . patrons , guests . or invitees ) : or ( iv ) any accident , injury to or death of persons ( including workers ) or loss of or damage to property occurring on or about the Premises or any part thereof or the adjoining sidewalks , curbs . streets or ways ; or ( v ) any use , non-use or condition of the Premises or any part thereoF or the adjoining sidewalks , curbs . if any , streets or ways ; or ( vi ) any failure on the part of the Tenant to perform or comply with any of the terms of this Lease ; or ( vii ) from any other cause or causes whatsoever while in , upon , about , or in any way connected with the use or occupancy of the Premises by the Tenant , its agents , invitees . subtenants , customers , patrons , customers , and employees . The Tenant , as a material part of the consideration to the Landlord . hereby assumes all risk of damage to property or injury to persons in , upon or about the Premises arising from any cause and the Tenant hereby waives ail claims in respect hereof against the Landlord . This obligation to indemnify shall include al ymcaleas . agm Rev . 5- 10-89 14 attorneys ' fees and investigat ' on costs and all other reasonab ' e costs . expenses and liabilities actual y incurred by the Landlord From the first notice that any c ;aim or demand is to be made or may be made . 14 . Insurance (a ) During the term hereof , the Tenant agrees . at is sole cost and expense . to provide and maintain at least the fol ► owina insurance : ( i ) Combined Single Limit Bodily Injury and Property Damage insurance to protect against any liability incident to the use of or resulting from any accident or liability resulting from any act or omission occurring in , or about the Premises , the liability coverage under such insurance to be not less than Five Million Dollars ( $5 , 000 , 000 ) per occurrence . The policy shall insure performance by the Tenant of the indemnity provisions of Section 13 . The limits of said insurance shall not , however , limit the liability of the Tenant hereunder ; ( il ) Insurance covering loss or damage to all improvements to the Premises ( including the Improvements ) and al ► • ' Persona oroperty . of the Tenant ( lncludi.rrg furniture , trade fixtures and equipment ) , in the amount of the full replacement value thereof , as the same may exist from time to time , against all perils included within the classification of Fire , extended coverage , vandalism, malicious mischief , flood, earthquake , and special extended perils ( "all risk" . as such term Is used in the insurance industry ) . A stipulated value or agreed amount endorsement deleting the coinsurance provision of the policy shall be procured with said insurance . IF the Tenant shall fai ' to procure and maintain said insurance , the Landlord may , but shall not be required to, procure and maintain the same. but at the expense of the Tenant . If such insurance coverage has a deductible clause , the deductible amount shall not exceed One Thousand Dollars ( $ 1 , 000 ) per occurrence , and the Tenant shall be liable For such deductible amount ; ( iii ) Plate Glass Insurance ; and ( iv ) Worker ' s Compensation Insurance covering al employees if required by law. (b ) All policies or certificates shall be issued Dv insurance companies rated AAA or better in Bests or by such companies as are approved in writing by the Landlord , shall name both the Landlord and the Tenant as insureds as their respective interests may appear , and shall contain a loss payable clause to the Landlord or , at the Landlord ' s option , any mortgagee . trustee or beneficiary under any mortgage or deed of trust covering the Premises , and a certificate of insurance (and a copy of each said ymcaleas . aam Rev . 5- 10-89 15 policy ) together with evidence of payment of premiums shall be delivered to the Lenalord at the commencement of the term of said policy or policies , and upon each and every renewal of said policy or policies . The limits of liability of the policies described in subparagraphs ( I ) and ( ii ) of subsection ( a ) of this Section 14 provided for herein shall be adjusted upward , for inflation , on the annual anniversary date of such policy or policies . consistent with increases since the previous anniversary date of such policy or policies in the Consumer Price Index--All Urban Consumers . U. S . City Average, issued by the U . S . Department of Labor . Bureau of Labor Statistics , or any successor index thereto . ( c ) in the event the Tenant fails to obtain , maintain , or keep in full force and effect any or all of the above described policies of insurance , the Landlord may . at its sole discretion , renew or procure such insurance , and the said costs thereof paid by the Landlord plus a fifteen percent ( 15% ) handling charge , shall become due and payable to the Landlord by the Tenant as additional rental on the first day of the next succeeding calendar month . ( d ) The Landlord and the Tenant hereby waive arty rights each may have against the other on account of any loss or. damage occasioned to the Landlord or the Tenant , as the case may .be . their respective personal property , the .improvements , or their contents or to any portions of the Premises , arising from any risk covered by the Fire and extended coverage insurance the Tenant provides hereunder . and the parties each , on behalf of their respective insurance companies insuring the Premises of either the Landlord or the Tenant against any such loss , waiver any right of subrogation that it may have against the Landlord or the Tenant , as the case may be , if such waiver is permitted by or obtainable from the respective insurance company. 15 . Damaae or Destruction ( a ) Except as provided herein to the contrary , if during the term of this Lease or any extension thereof, the improvements or any part thereof are damaged or destroyed by Fire or other casualty, this Lease shall continue in full force and effect and the Landlord shall , with reasonable diligence after the event causing the damage commence and prosecute diligently to completion the reconstruction and restoration of the improvements , insofar as practicable , to the condition in which the Improvements existed immediately prior to the occurrence of such damage or destruction . Such reconstruction and restoration shall be conducted and accomplished in full compliance with all laws , ordinances , rules and regulations of governmental authorities having Jurisdiction . in such event , the Tenant shall make available to the Landlord any insurance proceeds payable to the Tenant required for the reconstruction and restoration of the ymcaleas . agm Rev . 5- 10-89 16 Improvements . After the Landlord has applied the insurance proceeds to the reconstruction and restoration of the Improvements , the Landlord shall make any excess proceeds available to the Tenant For the Tenant ' s reconstruction and restoration of furnishings , fixtures , personal property and equipment . ( b } Notwithstanding the provisions of Subsection ( a ) hereof to the contrary , if there shall be any casualty damage to the Premises that is not covered by insurance , or if the insurance proceeds are inadequate to pay the entire cost of reconstructing and restoring the Improvements exceeds fifty percent ( 50% ) of their then replacement value, or if at any time during the last twelve ( 12 ) months of the term of this Lease there is any casualty damage to the Improvements , the Landlord may, at the Landlord ' s option , cancel and terminate this Lease as of the date of occurrence of such damage by giving written notice to the Tenant of the Landlord ' s election to do so within sixty (60 ) days after the date of occurrence of such damage . ( c ) The Tenant shall not be entitled to any damages by reason of any inconvenience or loss sustained by the Tenant by reason of any damage or destruction , the termination of this Lease , if such should . occur , or the lass . of , use of ..a port ion or all of the Premises during any period of reconstruction or restoration . (d ) in the event of termination of this Lease for any reason , all insurance proceeds paid or payable under any insurance policy shall belong to the Landlord . The Tenant expressly disclaims any interest in or claim to the proceeds of any insurance required by it to be maintained hereunder , other than For its personal property. ( e ) The provisions of Section 1932 . Subdivision 2 , and of Section 1933 , Subdivision 4 , of the Civic Code of the State of California and/or any other law , statute or ordinance providing tenants with the right to terminate a lease upon damage to the thing hired, are hereby waived by the Tenant . 16 . Assignment and Subletting (a ) The Tenant shall not either voluntarily , or by operation of law, assign , transfer , mortgage , pledge . hypothecate or encumber this Lease or any interest therein , and shall not sublet the Premises , the improvements thereon , or any part thereof , or any right or privilege appurtenant thereto . nor allow any other person ( the employees , agents , servants , patrons , and invitees of the Tenant excepted ) to occupy or use the Premises . or any portion thereof , without First obtaining the written consent of the Landlord . A consent to one assignment . subletting , occupation or use by any other person shall not be ymcaieas . agm Rev . 5- 10-89 17 deemed to be a consent to any subsequent assignment , subletting . occupation or use by another person . Consent to any such assignment or subletting sha l l in no way relieve the Tenant of any liability under this Lease . The acceptance of rent by the Landlord from any other person shall not be deemed to be a waiver by the Landlord of any provision hereof . in the event of default by any assignee or sublessee oF the Tenant in the performance of any of the terms hereof , the Landlord may proceed directly against the Tenant without the necessity of exhausting remedies against said assignee or sublessee . The Landlord may consent to subsequent assignments or subiettings of this Lease or amendments or modifications of this Lease with assignees of the Tenant . without notifying the Tenant , or any successor of the Tenant , and without obtaining the Tenant ' s or its successor ' s consent thereto , and such action shall not relieve the Tenant of liability under this Lease . ( b ) if the Tenant desires at any time to assign this Lease or sublet the Premises , the Tenant shall comply with the Following terms and conditions : ( i ) The Tenant shall first notify the Landlord at least sixty ( 60 ) days prior to the proposed effective date of the assignment .or of its .desire to do so and sha l l submit in writing to the Land Lord ( 1 ) the name of the proposed sublessee or assignee . ( 2 ) the terms and conditions of the proposed sublease or assignment and ( 3 ) financial statements For the three most recent completed fiscal years of the proposed sublessee or assignee , and a bank reference . Thereafter , the Tenant shall furnish such supplemental information as the Landlord may reasonably request concerning the proposed sublessee or assignee . At any time within forty-five ( 45 ) days after the Landlord ' s receipt oF the Information specified above , the Landlord may by written written notice to the Tenant elect to '' 1 ' terminate this Lease not less than forty-five ( 45 ) nor more than ninety ( 90 ) days after the end of said forty- five . 45 , day Period . ( 2 ) consent to the sublease or assignment . or ( 3 , reasonably disapprove of the sublease or assignment . setting forth in writing the Landlord ' s grounds for doing so . Such grounds may include , without limitation , a change in the use of the Premises from that described in Section 5 hereof . a possible material adverse effect upon the reputation oF the Premises from the reputation fro financial reliability on the part oF the proposed sublessee or assignee which is unsatisfactory in the reasonable judgment of the Landlord. If the Landlord consents to the sublease or assignment within the forty-five ( 45 ) day period , the Tenant may thereafter enter into such assignment or sublease of the Premises , upon the terms and conditions and as of the effective date set Forth in the information furnished by the Tenant to the Landlord ; ( ii ) Notwithstanding the Landlord having granted its consent to any assignment of subleasing , prior to the effective ymcaleas . agm Rev . 5- 10-89 18 date of any assignment of subleasing , prior to the effective date of any assignment or the commencement date of any sublease , the Landlord shall be furnished with a copy of the Fully executed sublease or assignment of lease agreement . and all "side- letters" thereto ; ( iii ) No sublease of the Premises shall be for a period of less than three ( 3 ) years , nor shall any sublease extend beyond the expiration date of the term of this Lease : ( iv ) No sublease shall be for less than the entire Premises ; ( v ) No sublease or assignment shall permit the sublessee or assignee to operate or use the Premises For any use or uses not permitted under this Lease ; ( vi ) Each sublease shall contain a provision . satisfactory to the Landlord , requiring the sublessee to attorn to the Landlord if the Tenant defaults under this Lease and if the subiessee is notified of the Tenant ' s default and instructed to make sublessee ' s rental payments , if any, directly to the Landlord ; ( vii ) The Tenant shall not accept , directly or indirectly any prepaid rent from any sublessee in excess of one month ; ( viii ) The Tenant shall pay to the Landlord as additional rent , within five ( 5 ) business days following the due date of such sums : (a ) one hundred percent ( 1007. ) of the rent from time to time payable or paid by such assignee , sublessee or sublessees to the Tenant ; plus ( b ) one hundred percent ( 100% ) of all other consideration payable for the assignment of sublease of this Lease . including , but not limited to , key money and the security deposit . This covenant shall survive the expiration of the term of this Lease ; and ( ix ) Each permitted assignee , transferee or sublessee . other than the Landlord , shall assume and be deemed to have assumed this Lease and shall be and remain liable jointly and severally with the Tenant for the payment of the rent and for the due performance or satisfaction of all of the provisions . covenants , conditions and agreements herein contained on the Tenant ' s part to be performed or satisfied . No assignment or subletting shall be binding on the Landlord unless such assignee or the Tenant shall deliver to the Landlord a counterpart of such assignment which contains a covenant of assumption by the assignee , but the fai ' ure or refusal of the assignee to execute such instrument of assumption shall not release or discharge the assignee from its liability as set Forth above . ymcaleas . agm Rev . 5- 10-89 19 ( c ) The Tenant expressly acknowledges that the limitations and restrictions on its right to assign this Lease or to sublet the Premises , as set forth in this Section 16 are a part of the economic terms of this Lease that were expressly bargained for at the time this Lease was entered into by the Landlord and the Tenant . 17 . The Tenant ' s Default ( a ) Any of the following events shall constitute a default under this Lease by the Tenant : ( i ) Failure by the Tenant to make any payment of rent or other payment required by this Lease when the same is due . and the continuance of such failure for a period of three ( 3 ) days after written notice thereof from the Landlord to the Tenant ; ( ii ) The vacating or abandonment (which is defined to be the Tenant ' s absence from the Premises for seven ( 7 ) consecutive days ) of the Premises by the Tenant ; ( iii ) Except as expressly permitted under this Lease , any attempted conveyance , assignment , mortgage or .subletting of ' t►i i s Lea=e or the Perm i ses or. any port ion• the'r-eof; ( iv ) The making by the Tenant of any genera l assignments or general arrangement for the benefit of creditors ; the filing by or against the Tenant of a petition for reorganization or arrangement under any law relating to bankruptcy (unless . in the case of a petition Filed against the Tenant , the same is dismissed within sixty (60 ) days ) ; the taking of any action at the corporate or partnership level by the Tenant to authorize any of the foregoing actions on behalf of the Tenant ; the appointment of a trustee or receiver to take possession of substantially all of the Tenant ' s assets located at the Premises or of the Tenant ' s interest in this Lease unless possession is restored to the Tenant within thirty ( 30 ) days ; or the attachment , execution or other judicial seizure of substantially all of the Tenant ' s assets located at the Premises or of the Tenant ' s interest in this Lease , where such seizure is not discharged within thirty ( 30 ) days ; ( v ) The Tenant ' s ceasing to use the Premises for the purposes described in Section 5 ( a ) hereof for any period of time ; and ( vi ) The failure by the Tenant to observe or perform any material covenant , condition , or provision in this Lease not already specifically mentioned in this Section 17 , where such failure continues for thirty ( 30 ) days after written notice from the Landlord notifying the Tenant of such failure . ymcaleas . agm Rev. 5- ' 0-89 20 (b ) in the event of any default by the Tenant , the Landlord may promptly or at any time thereafter , upon notice and demand and without limiting the Landlord in the exercise of any other right or remedy which the Landlord may have by reason of such default or breach : ( i ) Terminate the Tenant ' s right to possession of the Premises by and lawful means , in which case this Lease shall terminate and the Tenant shall immediately surrender possession of the Premises to the Landlord . to such event , the Landlord shall be entitled to recover from the Tenant : (A ) The worth at the time of award of the unpaid rent which had been earned at the time of termination ; ( B1 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 Tenant 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 • . af.t•er .the• time of award exceeds the amount Of such rental loss the Tenant proves can reasonably be avoided ; and (0 ) Any other amount necessary to compensate the Landlord for all detriment proximately caused by the Tenant ' s Failure to perform its obligations under this Lease or which in the ordinary course of things would be likely to result therefrom , including , but not limited to , the cost of recovering possession of the Premises ; costs of putting the Premises in good order , condition and repair , including necessary rer cation and alteration of the Improvements on the Premises ; reasonable attorneys ' fees , court costs , all costs for maintaining the Premises , all costs incurred in the appointment of and performance by a receiver to protect the Premises or the Landlord ' s interest under the Lease , and any other reasonable cost . The "worth at the time of award" of the amounts referred to in subsections ( A ) ana ( B ) above shall be computed by allowing interest at the rate of 127. per annum . The "worth at the time of award" of the amount referred to in subsection ( C ) above shall be computed by discounting such amount at one ( 1 ) percentage point above the discount rate of the Federal Reserve Bank of San Francisco at the time of award; or yrncaleas . agm Rev . 5- 10-89 2 ! iii ) Pursue any other remedy now or hereafter available to the Landlord under the laws or jud i c i a l decisions of the State . ( c ) Even though the Tenant may have breached this Lease and abandoned the Premises , at the Landlord ' s option this Lease shall continue ' n effect for so long as the Landlord does not terminate the Tenant ' s right to possession , and the Landlord may enforce all of its rights and remedies hereunder , including the right to recover rent as it comes due under this Lease , and in such event the Landlord will permit the Tenant to sublet the Premises or to assign the Tenant ' s interest in the Lease . or both , with the consent of the Landlord, which consent will not unreasonably be withheld provided the proposed assignee or sublessee is reasonably satisfactory to the Landlord as to credit and will occupy the Premises for the same purposes specified herein . For purposes of this subsection ( c ) , the following shall not constitute a termination of the Tenant ' s right to possession : ( i ) acts of maintenance or preservation or efforts to relet the Premises ; or ( if ) the appointment of a receiver under the initiative of the Landlord to protect the Landlord' s interest under this Lease . (d) All covenants and egreemen'ts to • be performed by the Tenant under any of the terms of the Lease shall be at the Tenant ' s sole cost and expense and . except as otherwise specifically provided herein , without any abatement of rent . If the Tenant sha l l fail to pay any sum of money . other than rent . required to be paid by it hereunder or shall fail to perform any other act on the Tenant ' s part to be performed hereunder , and such failure shall continue for thirty ( 30 ) days after notice thereof by the Landlord , the Landlord may , but shall not be obligated so to do . and without waiving any rights of the Landlord or releasing the Tenant From any obligations of the Tenant hereunder . make such payment or perform such other act at the Tenant ' s cost . All sums so paid by the Landlord and all such necessary incidental costs together with Interest thereon from the date of such payment by the Landlord in connection with the performance of any such act by the Landlord shall be considered rent hereunder . Except as otherwise in this Lease expressly provided, such rent shall be payable to the Landlord on demand . or at the option of the Landlord. in such Installments as the Landlord may elect and may be added to any other rent then due or thereafter becoming due under this Lease . and the Landlord snail have ( in addition to any other right or remedy of the Landlord ) the same rights and remedies in the event of the nonpayment thereof by the Tenant as in the case of default by the Tenant in the payment of any other rent due hereunder . ( e ) Should the Tenant fail to make any payment of rent when due hereunder , or should the Landlord advance on behalf of the Tenant any sum due by the Tenant to a third party as a vmcaleas .agm Rev . 5- 10-89 22 consequence of the Tenant ' s Failure to timely make such payment to such third party as and when such payment is due , or as a result of the Landlord performing an obligation of the Tenant hereunder , then such sums shall bear interest to the Landlord at the highest rate then permissible to be charged by non-exempt lenders under the usury laws of the State . ( F) Should the Land ' ord terminate this Lease under the provisions of Section 17 , Landlord shall first provide Tenant with a one year ' s notice . In such instance , Landlord shall compensate Tenant the sum of $25 . 000 for each unused year of the initial term . 18 . Holding Over In the event the Tenant shall with the Landlord ' s written consent hold the Premises beyond the term of this Lease , such hold over shall be construed to be a tenancy From month to month only and not a renewal or extension of the Lease, subject to all of the restrictions of this Lease , and the Tenant agrees to pay rent therefor monthly , in advance , during the time of holdover after the expiration of this Lease , in an amount equal to the monthly fair rental value of the Premises . Any holding over without the Landlord ' s written- consent shall be an unlawful detainer of the Premises . 19 . The Landlord ' s Remedies , Etc . , Cumulative Each right , power and remedy of the Landlord provided For in this Lease or now or hereafter existing at law or in equity or by statute or otherwise is exclusive to every other right , power or remedy provided for in this Lease or now or hereafter existing at law or in equity or by statute or otherwise , and the exercise or beginning of the exercise by the Landlord of any one or more of the rights , powers or remedies provided for in this Lease or now or hereafter existing at law or in equity or by statute or otherwise shall not preclude the simultaneous or later exercise by the Landlord of any or all such other rights , powers or remedies . 20 . Estoppel Certificate The Tenant shall , at any time and From time-to-time not more than five ( 5 ) days after receiving written notice from the Landlord , execute , acknowledge and deliver to the Landlord a statement in writing ( i ) 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 and effect ) and the dates to which the rental and other charges are paid in advance , if any , ( ii ) acknowledging that there are not . to the Tenant ' s knowledge . any uncured defaults on the part of the Landlord hereunder , or ymcaleas . agm Rev . 5- 10-89 23 specifying such defaults if any are claimed ; and ( iii ) certiFv : ng any other matters relating to the Lease , the Premises , or the Tenant ' s business or financial condition the Landlord may request . Any such statement may be relied upon by any prospective purchaser or encumbrancer of all or any portion of the Premises . At the Landlord' s option , the Tenant ' s failure to deliver such statement within such time shall be a material breach of this Lease or shall be conclusive upon the Tenant ii ) that this Lease is in full force and effect . without modification except as may be represented by the Landlord, ( ii ) that there are no uncured defaults in the Landlord ' s performance . and ( iii ) that not more than one year ' s rent has been paid in advance or such failure may be considered by the Landlord as a default by the Tenant under this Lease. 21 . Exculpation The term "Landlord" as used herein shall mean only the owner or owners at the time in question of the fee title or a lessee ' s interest in a ground lease of the Property. and in the event of any transfer of such title or interest , the Landlord herein named ( and in case of any subsequent transfers , then the grantor ) , shall be relieved From and after the date of such transfer of all 1 i ab -i i ty with respect 'Co the Landlord ' s obi i'gat i ons thereafter• to be performed , provided that any Funds in the hands of the Landlord, or the then grantor at the time of such transfer , in which the Tenant has an interest . shall be delivered to the grantee. The obligations contained in this Lease to be performed by the Landlord shall , subject as aforesaid, be binding on the Landlord ' s successors and assigns only during their respective periods of ownership. 22 . Entire Agreement This Lease contains all the promises , agreements , conditions , inducements and understandings between the Landlord and the Tenant relative to the Premises and this Lease . and there are no promises , agreements , conditions , understandings , inducements , warranties or representations , oral or written , express or implied , between them other than as expressly set forth herein . This Lease may be changed , waived, discharged or terminated only by an instrument in writing signed by the party against which enforcement of such change , waiver , discharge or termination is sought . All parties hereto have been represented in the negotiation and drafting of this Lease by independent counsel of their own choosing . 23 . Attorneys ' Fees Should either party hereto institute any action or proceeding at law or in equity to enforce or to interpret any ymcaleas . agm Rev . 5- 10-89 24 provisions hereof or for damages or other relief by reason of an alleged breach of any provision hereof , the prevailing party shall be entitled to receive from the losing party , in addition to allowable court costs , such amount as the court may adjudge to be reasonable as attorneys ' fees for the services rendered the prevailing party in such action or proceeding, and such amount may be made a part of the judgment against the losing party . Should the Landlord . without fault on its part , be made a party to any litigation instituted by or against the Tenant . the Tenant covenants to pay to the Landlord all costs and expenses , including reasonable attorneys ' fees . incurred by the Landlord in or in connection with such litigation , on a monthly basis . The Failure to pay the same , when due any rental or other charges payable hereunder by the Tenant to the Landlord . 24 . Notices Any notice or other communications required or permitted hereunder shall be sufficiently given if in writing and sent by registered or certified U . S . mail , postage prepaid . return receipt requested . addressed as follows : The Tenant : Family YMCA of the Desert .. A California • Mutual Benefit Corporation The Landlord : Palm Desert Redevelopment Agency • 73-510 Fred Waring Drive Palm Desert . California 92260 Copy to : Richards . Watson & Gershon 333 S . Hope Street , 38th Floor Los Angeles . California 90071 Attention : William L . Strausz or such addresses as shall be furnished in writing by any of the parties and any such notice or communication shall be deemed to have been given as of the date so mailed . 25 . Waiver The waiver by the Landlord of any breach of any term . covenant or condition herein contained shall not be deemed to be a waiver of such term , covenant or condition of any subsequent breach of the same or any other term . covenant or condition herein contained . The subsequent acceptance of rent hereunder by the Landlord shall not be deemed to be a waiver of any preceding breach by the Tenant of any term , covenant , or condition of this Lease , other than the Failure of the Tenant to pay the particular rental so accepted , regardless of the Landlord ' s knowledge of such preceding breach at the time of acceptance of such rent . ymcaleas . aam Rev . 5- 10-89 25 26 . Successors and Assians The terms , provisions , covenants and conditions contained in this Lease shall apply to , bind and inure to the benefit of the heirs , executors , administrators . legal representatives , successors and assigns ( where assignment is permitted) of the Landlord and the Tenant . respectively . Nothing in this Section 26 shall be construed as a consent by the Landlord to any assignment of this Lease or any interest therein by the Tenant except as provided in Section 16 of this Lease . 27 . Short Form Lease This Lease shag ' not be recorded by either party . 28 . Quiet Enjoyment The Landlord agrees that the Tenant , upon paying the rentals required hereunder , and so long as no event of default is in existence and continuing , and upon the Tenant ' s observing and performing all of the provisions , covenants and conditions of this Lease on its part to be performed, may quietly hold, occupy and enjoy the Premises during the term of the Lease , subject to the terms of. this Lease ; 29 . Governino Law and Construction ( a ) This Lease shall be governed by the laws of the State of California . ( b ) The language in all parts of this Lease shall be construed, in all cases , according to its fair meaning , and not for or against any party hereto . 30 . Severability If any provisions of this Lease is held to be invalid or void by a court of competent jurisdiction , the balance of the provisions shall , nevertheless , remain in full force and effect . 31 . Counterparts This Lease may be executed in multiple counterparts each of which shall be deemed an original . 32 . Monetary Obligations as Rent All monetary obligations of the Tenant hereunder shall be considered as additional rent . ymcaleas . agm Rev . 5- 10-89 26 33 . Headings and Pronouns The headings in this cease Agreement are for convenience only and shall not affect , govern or control the construction hereof. Masculine or feminine pronouns shall be substituted for the neuter form and vice versa , and the plural shall be substituted for the singular form and vice versa, in any place or places herein in which the context requires such substitution or substitutions . 34 . Additional Documents The Landlord and the Tenant shall , at any time at or after execution of this Lease . sign , and deliver , or cause others so to do , all such documents and instruments or do or cause to be done all such acts and things reasonably necessary to carry out the provisions of this Lease . 35 . Accord and Satisfaction Payment by the Tenant or receipt by the Landlord of a . lesser .amount. than the, rent or other 'charges herein' st i pu l a 'ed sha•I 1 be deemed to be on account of the earliest due stipulated rent or other charges , and any endorsement or statement on any check or any letter accompanying any check payment as rent or other charges shall not be deemed an accord and satisfaction, and the Landlord shall accept such check or payment without prejudice to the Landlord' s right to recover the balance of such rent or other charges or pursue any other remedy in this Lease . 36 . No Option The submission of this Lease to the Tenant shall be for examination purposes only . and does not and shall not constitute a reservation of or option for the Tenant to lease , or otherwise create any interest by the Tenant . in the Premises or any portion thereof . Execution of this Lease by the Tenant and return to the Landlord shall not be binding upon the Landlord. notwithstanding any time interval until the Landlord has in fact executed and delivered an executed counterpart of this Lease to the Tenant . vmcaleas . agm Rev . 5- 10-89 27 IN WITNESS WHEREOF . the parties hereto have executed this Agreement on the day and year First above written . PALM DESERT REDEVELOPMENT AGENCY ATTEST : L./A. eeri y BY r-1 / "47 SecrettTy - Chairman "Landlord" .- FAMILY YMCA OF THE DESERT By By • "Tenant'"' ymcaleas . agm Rev . 5- i0-89 2E 1r 1 I1 , • : L_ _.--•-•-)Z ` ` _) L y.:*----**N\ • •I___7____1 I ? • :_ii lll ` IIIII fili IIIIIII - • ' • • = r . 0 = 1 . 1 1 (---.3 , I . + I - • . . 4... J >4 H SITE PLAN H a EXHIBIT B The YMCA programs are basically defined under the Public Safety . Educational , and Charitable definitions of the I . R . S . The programs assist all who cannot afford the fees by providing a sliding fee structure for those who cannot afford the Fees to participate . The underlying theme For all programs is : 1 . To develop and maintain responsible leadership . appropriate programs and adequate facilities which provide the opportunity for all who wish to participate in the YMCA . 2 . To help individuals to achieve sound physical . mental and spiritual health . 3 . To help improve the quality of family life and strengthen the family structure . 4 . To improve the quality and understanding of individual and group interracial and intercultural relationships . • ; 5 : To he.IQ individuals constructively partfc°i.pate as good citizens . Programs to be conducted by the FAMILY YMCA OF THE DESERT include : SPONTANEOUS RECREATION ACTIVITIES To provide for equipment issuance such as basketballs , volleyballs , etc . . for free play activities on the Civic Center Site recreation facilities . SUMMER P . L . A . Y . (PLANNED LEISURE ACTIVITIES FOR YOUTH ) PROGRAM : Each summer , since 1984 , we have provided a half-day Recreation Program For school -age children , using the Lincoln School as headquarters . In 1986 . this program was expended to provide a full -day schedule for working parents who needed a safe place for their children . This program includes field trips , arts and crafts . sports events . indoor games and guest speakers . in 1987 and 1988 , there were twice-weekly trips to the College of the Desert swimming pool . The SUMMER P . L . A . Y . program was expanded from six to eight weeks , and the full -day program is conducted all Summer . The Palm Desert programs had 250 children daily . SUMMER RESIDENT CAMP : A one-week session for children ages 7- 14 at a mountain camp . Local volunteers are recruited as counselors for this week- long trip . SUMMER TRIPS/CARAVANS : Week- long trips for Junior High and High School age to Catalina Island and Yosemite . Trips are conducted in cooperation with the San Bernardino YMCA . SUMMER SWIMMING LESSONS : Conducted at resort pools or private residences . Classes for infants , toddlers and school -age children . The YMCA Aquatics Program is recognized nationally as being one of the top programs for teaching children swimming and diving skills . YOUTH BASKETBALL LEAGUE : Conducted in January, February and March for Grades 1 - 10 at the College of the Desert and the Palm Desert High School gymnasiums . Over .2.000 ch.i idren part i.0 i pate each Year. YOUTH GYMNASTICS PROGRAM : Conducted at the Palm Desert High School and at the Gymnastics Center in Cathedral City. 120 children , ages 3- 16 , participated in the Palm Desert Program In September , 1988 . There is a great need for Gymnastics Instruction in the Coachella Valley . Children who want to compete in Team Competition must attend practices in Cathedral City . YOUTH/ADULT KARATE : Conducted at the Youth Center in Palm Desert Community Park . Evening classes for five year olds to adults available. YMCA YOUTH CENTER : At the urging of the City of Palm Desert , the Family YMCA merged with the Palm Desert Youth Center in 1985 . The Youth Center now operates at a new location in Palm Desert Community Park . For Grades 6- up , this Center is open daily after school as a supervised Drop- in Center . Facilities include table games and refreshments , sports equipment , crafts and other recreational activities . Junior Volunteers are trained and placed in YMCA programs to assist adult instructors and staff. 2 PRE-SCHOOL PROGRAM : Kiddie Kamp for toddlers and parents held at the Youth Center twice weekly . This program includes activities for pre-schoolers and parents using movement education , music , games , stories and crafts . BEFORE/AFTER SCHOOL CHILDCARE : In cooperation with local School District , the YMCA provides Before and After School Childcare at both Lincoln and Washington Elementary Schools in Palm Desert each school day. Childcare Is also provided for school -age children during any day that schools are dismissed early . or for holidays . and during the entire Christmas and Easter vacation weeks . This service is primarily for working parents whose children need supervision after school until the parents ' workday ends . This program also operates in other Desert Cities : Coachella . Indio, La Quinta and Rancho Mirage . The following is a projection of programs that would be provided to the residents of Palm desert in this fac i i i ty.. Some of these are existing programs . and others are programs that will be available when the new facility is built . YOUTH PROGRAMS DAY CAMPS/CHILDCARE The facility would be used for an additional place to conduct Summer Day camps and Holiday camps . PRE-TEEN - TEEN PROGRAMS A meeting room will be used as a Drop- in Center as needed for this age group . In addition to recreation activities , a Junior Leadership Program and Youth and Government Leadership Program could be provided . The YMCA would organize social and sporting events on evening and weekends for the Pre-Teen and Teen-Age Youth. The YMCA also provides a large number of employment opportunities for Teenagers in its Summer Recreation and Childcare Programs . PRE-SCHOOL/PARENTING PROGRAMS : With additional space For programs . the YMCA will provide Parent Child Classes for Infants and Toddlers . 3 Classes For parents to enhance parenting skills and their interaction with their children would be given during the week and on weekends . PRE-SCHOOL MOVEMENT EDUCATION AND GYMNASTICS Classes for 2 - 5 year olds in Dance , Gymnastics and Body Awareness will be provided . Use of the surrounding park and playground area would enhance this program. DANCE Dance programs will be conducted for Ballet , Modern Jazz and Aerobics for all ages and skill levels . MARTIAL ARTS Karate and other forms of Martial Arts of all levels will be conducted. YOUTH GYMNASTICS Many of the local High Schools have had difficulty. providing this program afictthe- YMCA could assist these children in developing an' interest in Elementary School . Classes would be provided from Pre-School to Advanced Levels in the Multi -purpose Room. YOUTH BASKETBALL Actual games would continue at the local College of the Desert and the Palm Desert High School Gymnasium on Saturdays. Sign- ups , Coaches Clinics and some of the games for the younger age group could possibly be held at the Facility . YOUTH SPORTS CLINICS Organized Sports Clinics in Soccer , Baseball , Volleyball , Track and Field and other appropriate Youth Sports . PARENT-CHILD PROGRAMS Organized program for Parents and Children participating in Social Events together (Father/Son and Mother/Daughter Programs ) . RESIDENT CAMP/FUN TRIPS/CARAVAN TRIPS : The Facility would facilitate the promotion, sign-ups , and a central place for people attending these events to leave and return to . 4 ADULT PROGRAMS National Health Enhancement programs would be provided as follows : Adult and Senior Fitness Class Aerobics Healthy Back Classes ( for prevention and relief of lower back pain ) Weight Management Class ( for Weight Reduction and Nutritional Counseling ) Stress Management (a ten-week class to aid in management of stress ) Classes to encourage healthy lifestyles for individuals Walking Classes ( for Groups or Clubs ) Babysitting Services for Parents involved In activities . i . e. Fitness ana Hpalth • Classes COMMUNITY ORGANIZATIONS USE The meeting rooms could be used for activities and meetings for other non-profit groups when available . ADULT-DANCE CLASSES All levels of Dance will be offered for Adults : Jazz . Ballet . Square , Country and Ballroom. FAMILY ACTIVITIES Any activity or program that encourages the families to participate together will be provided . ADDITIONAL PROGRAMS/ACTIVITIES Other programs that are needed by the community , based on requests and monitoring of the recreational needs will be planned. SPECIAL EVENTS Holiday events and special City activities can be planned by the YMCA to incorporate the YMCA Goal of Community Development . The facility will be made available providing the schedule permits . 5 INTEROFFICE MEMORANDUM CITY OF PALM DESERT DATE : April 27 , 1989 TO: HONORABLE CHAIRMAN ANO MEMBERS OF REDEVELOPMENT AGENCY BOARD FROM : EXECUTIVE DIRECTOR, REDEVELOPMENT AGENCY SUBJECT: LEASE AGREEMENT WITH YMCA FOR USE OF THE COMMUNITY CENTER TO BE CONSTRUCTED ON CIVIC CENTER SITE Recommendatfon: That the Agency Board . by minute motion . approve the attached Lease Agreement with the Family YMCA of the Desert for their occupancy of the recreation facility to be built on the Civic Center site, and authorize the Executive Director to execute said Agreement . Background: The Redevelopment Agency is currently in the process of designing a community center on the Civic Center site . The facility is budgeted at one million dollars . In addition. the City' s Capital Improvement Budget has contained for the past 2- 3 years , $300 . 000 offsite improvements for the facilities . The proposal Is that such community center be run and operated by the Family YMCA of Palm Desert in its efforts to provide its services to the community. The Lease Agreement provides that : 1 . The center will be leased to the Family YMCA of the Desert for an Initial term of 10 years ; 2 . The compensation through such initial term to the Agency will be the provision of community recreation services as outlined in Exhibit " " ; 3 . The YMCA will deed to the Agency two acres it currently owns within the Civic Center site ; 4 . The YMCA will pay one dollar ( $ 1 . 00 ) per year as rent . There are two options to extend the lease . Under the same terms and conditions , the first option could be exercised at the end of the initial term aria the Agency is only obligated to extend the lease if the YMCA has built an addition of 5 , 000 sq. Ft . The first option would be for a period of 20 years . There are provisions for an additional 20 year option if the YMCA has added another 5 , 000 sq . ft . during the first 20 year option . The Lease provides that the premises will be used solely as a nonprofit institution available to the general public for those services customarily provided by the Family YMCA ; that the YMCA would be responsible for setting fees and charges for participation , but that however , participation will not be denied to any member of the public based on YMCA membership . There is a nonmember fee that could be established for non-YMCA members , provided such fees bear a direct relationship to the costs of providing the service . The YMCA , under the Agreement , is required to furnish , install and maintain personal property, furniture, fixtures and equipment ; maintain all of the premises ; pay for insurance , utilities and any property taxes that may result from the YMCA ' s use of facilities . In addition, the YMCA is to provide for repair and maintenance to the facilities and not make any alterations unless such alterations are approved by the RDA and the City . The YMCA is responsible for providing insurance for both the facility and general liability. An important provision of the Agreement is that if the YMCA were to be terminated during the Initial term for nonperformance that the Agency would compensate them for terminating the Lease , and that the value of such compensation would be equivalent to $25 . 000 for each unused year of the initial 10-year term. 6Z/44° Carlos L . Ortega Executive Director mh Attachment 2 1 ‘ tS ,/‘:q4.11"Ci:o . It ' ' or- r •... 1 ter" W4,11 ‘ ........„....---3., Wit mew'°\\**4\tx ` '+wa,,;,, , + A% ass ri .v..1 lc; ' di ''\k,...c:\ \ II "0"----' .6 • . _ ..._ ...... _, ,i :. b i ., . ,/,/ \.., , -.-.-_ 16 _,__ • ' \i----'*". 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