Loading...
HomeMy WebLinkAboutReso - CC - 026-2013RESOLUTION NO. 26-2013 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BURLINGAME APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE AND AMENDMENT NO. 2 TO THE RENTAL AGREEMENT WITH MR. RINO BETTI FOR THE PREMISES AT 1080 HOWARD AVENUE WHEREAS, City is the owner of the premises located at 1080 Howard Avenue, the old Greyhound Bus Depot, at the corner of Highland Avenue and California Drove in downtown Burlingame; and WHEREAS, Mr. Rino Betti has been leasing 1080 Howard Avenue since April 1, 2004 and has been operating the premises as "Sam's Sandwich Shop", and WHEREAS, Mr. Betti's business has suffered financial difficulty as a result of the recent nationwide recession resulting in his delinquency in rent payments for the premises; and WHEREAS, Mr. Betti has invested a significant amount of money in the premises to make improvements necessary to operate a food service establishment; and WHEREAS, City realizes that the premises is a property which, given its small square footage and unique location, would be difficult to market; and WHEREAS, City has a strong public interest in ensuring that premises continues to be occupied by a viable business in the downtown; and WHEREAS, there is a public benefit in reducing the rent for the premises as such rent reduction will assist in maintaining a viable business on this premises; NOW, THEREFORE, the City Council of the City of Burlingame does hereby resolve, determine and find as follows: The City Council finds that all of the facts stated herein and in the staff report and are true and correct. 2. The City Council determines and finds that there is a public interest and benefit in ensuring that this property is occupied by a viable business in the downtown and accordingly, there would be a public benefit from adjusting the terms of the rental agreement for the premises. The City Council approves and authorizes the Mayor to execute an amendment No. 2 to the rental agreement with Mr. Rino Betti for the premises at 1080 Howard Avenue in the form attached hereto as Exhibit "A". I, Mary Ellen Kearney, City Clerk of the City of Burlingame do hereby certify that the foregoing Resolution was introduced at a regular meeting of the City Council on the 18th day of March, 2013, and was adopted thereafter by the following vote: AYES: Councilmembers: BROWNRIGG, DEAL, KEIGHRAN, NAGEL NOES: Councilmembers: NONE I-•ECUSED Councilmembers: BAYLOCK Pik Mary Ellen kearney, City Clerk AMENDMENT NO.2 TO COMMERICAL LEASE AGREEMENT BETWEEN THE CITY OF BURLINGAME AND RINO BETTI, DBA SAM'S SANDWICH SHOP, FOR THE PREMISES AT 1080 HOWARD AVENUE, BURLINGAME, CALIFORNIA This Amendment No. 2 made and entered this 1kday of March, 2013, by and between the City of Burlingame, a municipal corporation (herein "Landlord"), and Rino Betti, dba Sam's Sandwich Shop (herein "Tenant"), amends the Commercial Lease Agreement, including Addendum A, dated February 26, 2004, and as amended by Amendment No. 1, dated March 24, 2005, for the lease of the building at 1080 Howard Avenue (herein, "Premises"). WHEREAS, Tenant has had financial difficulty in the management and operation of his business on the Premises which he has leased from Landlord since 2004; and WHEREAS, Tenant has made improvements to the Premises over the term of the Lease agreement; and WHEREAS, City has an interest in ensuring that Premises continues to be occupied and a viable business in the downtown; and WHEREAS, there is a public benefit in reducing the Tenant's rent for the Premises as such rent reduction will assist Tenant in maintaining a viable business on this Premises; NOW, THEREFORE, THE PARTIES AGREE TO AMEND THEIR AGREEMENT AS FOLLOWS: 1. Section 2, "Term", is hereby deleted and a new Section 2, "Term", is hereby added to read as follows: "2. TERM: The term shall be on a month-to-month basis, commencing April 1, 2013. Either party may terminate the tenancy by giving written notice to the other party at least thirty (30) days prior to the intended termination date, subject to any applicable laws. Such notice may be given on any date. This Agreement is not a lease and does not convey any interest in real property." Section 3, "Base Rent", is hereby deleted and a new Section 3, "Base Rent", is hereby added to read as follows: "3. BASE RENT: Tenant agrees to pay Landlord as base rent for Premises, $1,700.00 per month. Rent is payable in advance on the first (1st) day of each month and is delinquent if not received by Landlord on or before the fifteenth (15th) day of each month." Section 6, "Security Deposit", is hereby amended to. add new subsections "D" and "E" to read as follows: "D. Landlord and Tenant agree that, on or after February 1, 2013, the Landlord may take and apply the full $4,000.00 security deposit to pay delinquent base rent. E. Landlord and Tenant further agree that Tenant shall pay to Landlord a security deposit of $2,000.00. Tenant may either pay to Landlord the full security deposit or may pay the security deposit in installments of an additional $100.00 per month on the following schedule, until the full security deposit of $2,000.00 has been paid to Landlord. April 1, 2013 $100.00 May 1, 2013 100.00 June 1, 2013 100.00 July 1, 2013 100.00 August 1, 2013 100.00 September 1, 2013 100.00 October 1, 2013 100.00 April 1, 2014 "100.00 May 1, 2014 100.00 June 1, 2014 100.00 July 1, 2014 100.00 August 1, 2014 100.00 September 1, 2014 100.00 October 1, 2014 100.00 April 1, 2015 100.00 May 1, 2015 100.00 June 1, 2015 100.00 July 1, 2015 100.00 August 1, 2015 100.00 September 1, 2015 100.00 2,000.00 Tenant's failure to pay this monthly amount until the new security deposit amount has been achieved shall be considered a breach of the agreement." 4. Section 21, "Signs", is hereby deleted and a new Section 21, "Signs", is hereby added to read as follows: "21. SIGNS: Tenant authorizes Landlord to place a FOR SALE sign on the Premises at any time and a FOR LEASE sign on the Premises upon either party's notification to the other of termination of the month-to-month tenancy." 5. Section 39, "Other terms and Conditions/Supplements", is hereby amended to add a new subsection "39b" to read as follows: "39b. Addendum "A" is hereby revised to delete Section 2 and Section 3 in their entirety. Except as expressly revised by these deletions to Addendum A, all other terms and conditions of Addendum A shall remain in full force and effect." 6. Except as expressly amended by this Amendment No. 2, all other terms and conditions contained in the Commercial Lease Agreement dated January 19, 2004, between the City of Burlingame and Rino Betti dba Sam's Sandwich Shop, as amended, shall remain in full force and effect. IN WITNESS WHEREOF, the parties have executed this Amendment No. 2 to the Commercial Lease Agreement dated January 19, 2004, as amended, on the day and the year first above written. �367W(i7l�Cil\�1� By:Lisa Goldman, Goldman, City Manager Att st: Mary Ell Kearney, City Clerk "ALIM 4" By: � ,U &�� Mr. Rino Betti Guinan, City Attorney ite- G �a CITY G c(CIT�'Y{� RECREATION BURLM, $ (� 7 � �Yw�d� U RLlNGA NE PARKS 6:.�. ""'�""-"'-"'-`�'('�,' IO DE$+=R11�<u:/F'� i� _ 850 Burlingame Avenue, Burlingame, California 94010-2899 Telephone (650) 558-7300 ° Parks I Trees (650) 558-7330 y Pax (650) 696-7216 ° E-mail: recreation@burlingame.org s: k March 18, 2004 Rino Betti Sam's Italian Sandwich Co. 297 California Drive Burlingame, CA 94010 RE: COMMERCIAL LEASE AGREEMENT Enclosed please find your copy ofthe Commercial Lease Agreement with the City ofBurlingame for the rental of the "Bus Depot' at 1080 Howard Avenue. Monthly rent in the amount of $1000 per month, beginning on April 1, 2004 and ending on March 1, 2005, should be made payable to the City of Burlingame and mailed to the attention of Karlene llarvev, Burlingame Parks & Recreation Department 850 Burlingame Avenue Burlingame CA 94010. Please feel free to contact me at (650) 558-7307 if you have any questions. Sincerely, Randy Schwartz' Parks & Recreation Director CALIFORNIA COMMERUAL LEASE AGREEMENT �aASSOCIATION (C.A.R. Forts. CL,Revised 10101) Ria% OF AEALTOASo )ate (For reference only): , iaauary 19, 2004 Landlord rents to Tenant and Tenant square the real property and as TERM: The term shall be for tea years and o months, beginning on (date). APM11 1. 2004 ("Commencement Date'), (Check A or B): ❑x A. Lease: and shall terminate on (date) March 31, 2014 at sic [I AM ® PM. Any holding over after the term of this agreement expires, with Landlord's consent, shag create a month-to-month tenancy that either party may terminale as specified in paragraph 2B. Rent shall be at a'rdte equal to the rent for the immediately preceding month, payable in advance. All other terms and conditions of this agreement shag remain In full force and effect ❑ B. Monli Ao-month: and continues as a month-to-month tenancy. Either party may terminate the tenancy by giving written notice to the other at least 30 days prior to the Intended termination date, subject to any applicable local laws. Such notice may be given on any date. [] C. RENEWAL OR EXTENSION TERMS: See attached addendum A ' BASE RENT: A. Tenant agrees to pay Base Rent at the rate of (CHECK ONE ONLY:) ❑ (1) $ per month, for the term of the agreement. ® (2) $ Jo 10.00 per month, for the first 12 months of the agreement. Commencing with the 13th month, and upon expiration of each 12 months thereafter, rent shall be adjusted according to any increase in the U.S. Consumer Price Index of the Bureau of Labor Statistics of the Department of Labor for All Urban Consumers ("CPI') for sea mca=zlscro E I Area (the city nearest the location of the Premises), based on the following formula: Base Rent will be multiplied by the most current CPI preceding the first calendar month during which the adjustment is to take effect, and divided by the most recent CPI preceding the Commencement Date. In no event shag any adjusted Base Rent be less than the Base Rent for the month Immediately preceding the adjustment. If the CPI is no longer published, then the adjustment to Base Rent shall be based on an alternate index that most closely reflects the CPI. ❑ (3) $ per month for the period commencing and ending- and $ per month for the period commencing and ending and $ per month for the period commencing and ending (4) In accordance with the attached rent schedule. (5) Other. B. Base Rent Is payable in advance on the ist(or U day of each calendar month, and is delinquent an the next day: C. IF Commencement Date falls on any day other than the first day of the month, Base Rent for the first calendar month shall be prorated based on a 30 -day period. If Tenant has paid one full month's Base Rent in advance of Commencement Date, Base Rent for the second calendar month shall be prorated based'on a 30 -day period. RENT:' A, Definition: ("Rent) shall mean all monetary obligations of Tenant to Landlord under the terms of this agreement, except security deposit. B. Payment: Rent shall be paid to (Name) City of-9=11nga , at (address) 50Primrose Road, Bur21ngr , CA 94010 or at any other location specified by Landlord in writing to Tenant. C. Timing: Base Rent shall be paid as specified in paragraph 3. All other Rent shall be paid within 30 days after Tenant is billed by Landlord. EARLY POSSESSION: Tenant is entified to possession of the Premises on rd -t 1 2004 If Tenant is in possession prior to the Commencement Date, during this time (t) Tenant is not obligated to pay Base Rent, and (it) Tenant is ❑ is not obligated to pay Rent other than Base Rent Whether or not Tenant is obligated to pay Rent prior to Commencement Date, Tenant is obligated to comply with all other terms of this agreement. SECURITY DEPOSIT: A. Tenant agrees to,,PP..a,y Landlord $ 4 000, Do as a security deposit Tenant agrees not to hold Broker responsible for its return. (IF CHECKED:) If If Base Rent increases during the form of this agreement, Tenant agrees to increase security deposit by the same propedion as the increase in Base Rem. B. All or any portion of the security deposit may be used, as reasonably necessary, to: (1) cure Tenant's default in payment of Rent, late charges, non -sufficient funds ('NSF") fees, or other sums due; (it) repair damage, excluding ordinary wear and tear, caused by Tenant or by a guest or licensee of Tenant; (iii) broom dean the Premises, If necessary, upon termination of tenancy; and (Iv) cover any other unfulfilled obligation of Tenant SECURITY DEPOSIT SHALL NOT BE USED BY TENANT IN LIEU OF PAYMENT OF LAST MONTH'S RENT. If all or any portion of the security deposit is used during tenancy, Tenant agrees to reinstate the total security deposit within 5 days after written notice is delivered to Tenant Withtn 30 days after Landlord receives possession of the Premises, Landlord shall: (1) furnish Tenant an itemized statement indicating the amount of any security deposit recetved and the basis for its disposition, and (ff) return any remaining portion of security deposit to Tenant. However, if the Landlord's only claim upon the security deposit Is for unpaid Renk then the remaining portion of the security deposit, after deduction of unpaid Rent, shall be returned within 14 days after the Landlord receives possession. C. No interest will be paid on security deposit, unless required by local ordinance. ie copyright taws of the United States (Crile 17 U.S. Code) forbid the Landlord and Tenant admowledge recefigofLa copy of this authorized reproduction of this form, or any portion thereof, by photocopy page. schine or any other means, including facsimile or computerized formats. Landlord's Initials ( ) ( ) ipyright ®1998-2001, CALIFORNIA ASSOCIATION OF REALTORS®, Tenant's Initials(_ ) C. ALL RIGHTS RESERVED. aPPORa uYiowed pY tI REVISED 10101 (PAGE 1 of 6) [1�3mker orIIunee Date COMMERCIAL LEASE AGREEMENT (CL -11 PAGE 16F 6) ran,Tim-Rcaltor PO Box 1084 , Burlingame CA 94011 3ne:(650)3473300 Fax: (650) Tim Auras. T5625954ZFX Premises: 1080 Howaxd Avenue. ggEMpcame, rA 94010 Daleg.,Inuaxy 19, 2004 7. PA*ENTS: ' PAYMENT TOTAL DUE RECEIVED BALANCE DUE DUE DATE N. Rent: From 0110112004 To 0313112004 $ 1,500.00 $ 1,500,00 $ ' Date Date B. Security Deposit...........................$4,000.00 $ $4,000.00 Other: $ $ $ Category ]. Other $ $ $ Category ' =•Total: .............. ; ................... , $ 5,500.00 $ 1,500.00 $ 4,000.00 I. PARKING: Tenant is entitled to no unreserved and m reserved vehicle parking spaces. The right to parking ❑ is ® is not included in the Base Rent charged pursuant to paragraph 3. If not included in the Base Rent, the parking rental fee shall be an additional $ per month. Parking space(s) are to be used for parking operable motor vehicles, except for trailers, boats, campers, buses or.trucks (other than pick-up trucks). Tenant shall park in assigned space(s) only.. Parking space(s) are to'be kept clean. Vehicles leaking oil, gas or other motor vehicle fluids shall not be parked in parking spaces or on the Premises. Mechanical work or storage of inoperable vehicles is not allowed in parking spaces) or elsewhere on the Premises. No overnight padding is permiffed. L ADDITIONAL STORAGE: Storage is permitted as follows: not applicable The rightte additional storage space ❑ is ©is not included in the Base Rent charged pursuant to paragraph 3. if not included in Base Rent, storage space shall be an additional $ per month. Tenant shall store any personal properly that Tenant owns, and shall not store property that is claimed by another, or in Which another has any right, lige, or interest. Tenant shall not store any improperly packaged food or. perishable goods, flammable materials, explosives, or other dangerous or hazardous material. Tenant shag pay for, and be responsible for, the clean-up of any contamination caused by Tenonl% use of the storage area., ' 0. LATE CHARGE; INTEREST; NSF CHECKS: Tenant acknowledges that either late payment of Rent or issuance of NSF check may cause Landlord to incur costs and expenses, the exact amount of which are extremely difficult and Impractical to determine. Those costs may include, but are not limited to, processing, enforcement and accoupting expenses, and late charges imposed an Landlord. If any Installment of Rent due from Tenant is not received by Landlord within 5 calendar'days after dale due, or if a check Is returned NSF,'Tenant shall pay to Landlord, respectively, $100.00 as late charge, plus. 10% interest per annum on the deltriquent amount and $25.00 as a NSF fee, any of which shall be deemed additional Rent. Landlord and Tenant agree that these charges represent a fair and reasonable estimate of the casts Landlord may Incur by reason of TenanPs late or NSF payment Any late charge, delinquent Interest, or NSF fee due shag be paid with the current Installment of Rent. Landlord's. acceptance of any late charge or NSF fee shall not constitute a waiver as to any default of Tenant Landlord's. right to collect a Late Charge or NSF fee shall not be.deemed an extension of the date Rent is due under paragraph 4, or prevent Landlord from exercising any other rights and remedies under this agreement and as provided by law. - 1. CONDITION OF PREMISES: Tenant has examined the Premises and acknowledges that Premise is clean and .in operative condition, with the following excepfions:'tro exceptions Items listed as exceptions shall be dealt with in the following manner. 2. ZONING AND LAND USE: Tenant accepts the Premises subject to all local, state and federal laws, regulations and ordinances ('Laws'). Landlord makes no representations or warranty that Premises are now or in the firture will be suitable for Tenants use. Tenant has made its own investigation regarding all applicable Laws. 3. TENANT OPERATING EXPENSES: Tenant agrees to pay for all utilities and services directly billed to Tenant- Unities include, hrater, . gas, electricity, garbage, gardening telephone and cable. 4. PROPERTY OPERATING EXPENSES: . ' A. Tenant agrees to pay its proportionate share of Landlord's estimated monthly property operating expenses, including but not limited to, common area maintenance, consolidated utility and service bills, insurance, and real estate taxes, based on the ratio of the square footage of the Premises to the total square footage of the rentable space in the entire property.' R B. © (if checked) Paragraph 14 does not apply. i. USE; The Premises are for the sole use as if sandwich shop ' No other use is permitted without Landlord's prior written consent if any use by Tenant causes an increase in the premium an Landlord's existing property insurance, Tenantshall pay for the increased cost. Tenantwill comply with all LAWS affecting its use of the Premises. . I. RULESIREGULATIONS:•Tenant agrees to comply with all rules and regulations of Landlord (and, if applicable, Owner's Association) that are at any time posted on the Premises or delivered to Tenant Tenant shall not, and shall ensure that guests and ricensees of Tenant do not, disturb, annoy, endanger, or interfere with other tenants of the building or neighbors, or use the Premises for any unlawful purposes, including, but net limited to, using, manufacturing, selling, storing, or transporting illicit drugs or other contraband, or violate any law or ordinance, or commitiing a waste or nuisance on or about the Premises. ' '. MAINTENANCE: A. Tenant OR ❑ (if checked, Landlord) shall professionally maintain the Premises including heating, air conditioning, electrical, plumbing and water systems, If any, and keep glass, windows and doors in operable and safe condition. Unless Landlord is checked, if Tenant fails to maintain the Premises, Landlord may contract for or perform such maintenance, and charge Tenant far Landlord's cost. B. Landlord ORD (If checked, Tenant) shall maintain the roof, foundation, exterior walls, common areas and erterigr painting and Trees ie copyright laws of the United States (Title 17 U.S. Code) forbid the Landlord and Tenant acknowledge re` copy of this authorixad reproduction of this form, or any portion thereof, by photocopy page, achine or any -other means, including facsimile or computerized formats! Landlord's inlgais ( ) ( ) "'• ipyright ® 1990-2001, CALIFORNIA ASSOCIATION OF REALTORS®, Tenants initials ( ) ( ) fl C. ALL RIGHTS RESERVED. Reviewer) by rPPrrNreIY =11 REVISED 10101 (PAGE 2 of 5) Broker ofLq,ee pate COMMERCIAL LEASE AGREEMENT (CL -11 PAGE 2 OF 6) T5625954.ZFX I 'remises: lose Hou d Ayeaye larrrl'noamP CA 94010 __ Date •Ta arir 19. 20041 8. ALTERATIONS: Tenant shall not make any alterations in or about the Promises, including installation of trade fixtures and signs, without Landlord's prior written consent, which shall not be unreasonably withheld. Any alterations to the Premises shag be done according to Law and with required permits. Tenant shall give Landlord advance notice of the commencement date of any planned alteration, so that Landlord, at Its option, may post a Notice of Non -Responsibility to prevent potential Piens against Landlord's. interest in the Premises. Landlord may also require Tenant to provide Landlord with gen releases from any contractor performing work on the Premises. ' 9. GOVERNMENT IMPOSED ALTERATIONS: Any alterations required by Law as a result of Tenant's use shall be Tenants responsibility. Landlord shall be responsible for any other alterations required by Law. 0. ENTRY: Tenant shall make Premises available to Landlord or Landlord's agent for the purpose of entering to make inspections, necessary or agreed repairs, alterations, or Improvements, or to supply necessary or agreed services, or to show Premises to prospective or actual purchasers, tenants, mortgagees, lenders, appraisers, or contractors. Landlord and Tenant agree that 24 hours notice (oral or written) shall be reasonable and sufficient notice. In an emergency, Landlord or Landlord's representative may enter Premises at any time without priornotice. 1. SIGNS: Tenant authorizes Landlord to place a FOR SALE sign on the Premises at any time, and a FDR LEASE sign on the Premises within the 90 (or n ) day period preceding the termination of the agreement. 2. SUBLE nNWASSIGNMENT: Tenant shall not sublet or encumber all or any part of Premises, or assign or transfer this agreement or any Interest in It, without the prior written consent of Landlordwhich shall not be unreasonably withheld. Unless such consent is obtained, any subletting, assignment, transfer, or encumbrance of the Premises, agreement, or tenancy, by voluntary act ofTenam, operation of law, or otherwise, shall be null and void, and, at the option, of Landlord, terminate this agreement Any proposed sublessee, assignee, or transferee shall submit to Landlord an application and credit information for Landlord's approval, and, R approved, sign a separate written agreement with Landlord and Tenant Landlord's consent to any one sublease, assignment, or transfer, shag not be construed as consent to any subsequent sublease, assignment, or transfer, and does not release Tenant ofTenahts obligation under this agreement 3. POSSESSION: If Landlord is unable to deriver possession of Premises on Commencement Date, such date shall be extended to the date on which possession is made available to Tenant. However, the expiration date shall remain the same as specified in paragraph 2. If Landlord is unable to deliver possession within 60 (or❑ ) calendar days after agreed Commencement Date, Tenant may terminate this agreement by giving written notice to Landlord, and shag be refunded ail Rent and security deposit paid. A. TENANTS OBLIGATIONS UPON VACATING PREMISES: Upon termination of agreement, Tenant shall: (t) give Landlord all copies of all keys or opening devices to Premises, including any common areas; (Ii) vacate Premises and surrender it to Landlord empty of ail persons and personal property; pip vacate all parting and storage spaces; Uv) deliver Premises to Landlord in the same condition as referenced in paragraph 11; (v) clean Premises; (vi) give written notice to Landlord of Tenant's forwarding address; and, (vii) All Improvements Installed by Tenant, with or without Landlord's consent, become the properly of Landlord upon termination. Landlord may nevertheless require Tenant to remove any such improvement that did not exist at the lime possession was made available to Tenant.. t6. BREACH OF CONTRACT]EARLY TERMINATION: in event Tenant, prior to expiration of this agreement, breaches any obfigatian in this agreement, abandons the premises, or gives notice of tenant's intent to terminate this tenancy prior to its expiration, in addition to any obligations established by paragraph 24, Tenant shall also be responsible for lost rent, rental commissions, advertising expenses, and painting costs necessary to ready Premises for re -rental. Landlord may also recover from Tenant: (1) the worth, at the time of award, of the unpaid Rent that had been earned at the time of termination; (ti) the worth, at the time of award, of the amount by which the unpaid Rent that would have been earned after expiration until the time of award exceeds the amount of such rental loss the Tenant proves could have been reasonably avoided; and (fit) the worth, at the time of award, of the amount by which the unpaid Rent for the balance of the term after the We of award exceeds the amount of such rental loss that Tenant proves could be reasonably avoided. Landlord may elect to continue the tenancy in effect for so long as Landlord does'not terminate Tenant's right to possession, by either written notice of termination of possession or by retelling the Premises to, another who takes possession, and Landlord may enforce all Landlord's rights and remedies underthis.agreement, including the right -to recover the Rent as it becomes due. !6. DAMAGE TO PREMISES: If, by no fault of Tenant, Premises are totally or partially damaged or destroyed by fire, earthquake, accident or other casualty, landlord shall have the right to restore the Premises by repair or rebuilding. If Landlord elects to repair or rebuild, and Is able to complete such restoration within 90 days from the date of damage, subject to terms of this paragraph, this agreement shall remaln in full force and effect. If Landlord Is unable to restore the Premises within this time, or If Landlord elects not to restore, then either Landlord or Tenant may ternlnate.this agreement by giving the other written notice. Rent shall be abated as bf the date of damage. The abated amount shall be the current monthly Base Rent prorated on a 30 -day basis. if this agreementls not terminated, and the damage is not repaired, then Rent shalt he reduced based an the extent to which the damage interferes with Tenanfs reasonable use of Premises. If damage occurs as a result of an act of Tenant or Tenant's guests, only Landlord shall have the right of termination, and no reduction In Rent shall he made. U. HAZARDOUS MATERIALS: Tenant shall not use, store, generale, release or dispose of any hazardous material on the Premises or the property of which the Premises are part However, Tenant is permitted to make use of such materials that are required to be used in the normal course of Tenard's business provided that Tenant complies with all applicable taws related to the hazardous materials. Tenant is responsible for the cast of removal and remediation, or any clean-up of any contamination caused by Tenant W. CONDEMNATION: If all or part oflhe Premises is condemned for public use, either party may terminate this agreement as of the date possession is given to the condemner. All condemnation proceeds, exclusive of those allocated by the condemner to Tenants relocation costs and trade fixtures, belong to Landlord. M. INSURANCE: Tenant's personal property, fixtures, equipment, Inventory and vehicles are not insured by Landlord against loss or damage due to. fire, theft, vandalism, rain, water, criminal or negligent acts of others, or any other cause. Tenant Is to carry Tenants own property insurance to protect Tenant from any such loss. In addition, Tenant shall carry liability insurance In an amount of not less than $1, 000, 000.00 . Tenant's liability Insurance shall name Landlord and landlord's agent as additional insured. Tenant, upon Landlord's request, shall provide Landlord with a certificate of insurance establishing Tenants compliance. Landlord shall maintain liability insurance insuring Landlord, but not Tenant, in an amount of at least $ - , plus property insurance in an amount sufficient to cover the replacement cost of the property. Tenant Is advised to carry business Interruption insurance in an amount at least sufficient to cover Tenant's complete rental obligation to Landlord. Landlord is advised to obtain a policy of rental loss insurance. Both Landlord and Tenant release each other, and waive their respective rights to subrogation against each other, for loss or damage covered by insurance. rhe copyright laws of the United States'(Ttide 17 U.S. Code) forbid the Landlord and Tenant acknowledge recei of a opy of this unauthorized reproduction of this tans, or any portion thereof, by photocopy page. nachine or any other means, including facsimile or computerized formats. Landlord's Initials ( l ( ) e 'opyright ® 1998-2001, CALIFORNIA ASSOCIATION OF REALTORS®, Tenant's Initials ( ) ( ) NC. ALL RIGHTS RESERVED. Reviewed by 3L-11 REVISED 10101 (PAGE 3 of 6) Broker or Designee Data COMMERCIAL LEASE AGREEMENT (CL -11 PAGE 3 OF 6) _ T5625954.ZFX )remfSeS: 1050 Howard Avemae, B=21nq — , CA 94010 Date Ta vaxy Z9, 2004 . M. TENANCY STATEMENT (ESTOPPEL CERTIFICATE): Tenant shall execute and return a tenancy statement (estoppel certificate), delivered to Tenant by landlord or.Landlord's agent; within 3 days after its receipt. The tenancy statement shall acknowledge that this agreement is unmodified and in full farce, or in fult.forie as modified, and state the modifications. Failure to comply with this requirement (i) shall be deemed Tenant's acknowledgment that the tenancy statement is true and correct, and may be relied upon by a prospective lender or purchaser, and (11)'may be treated by Landlord as a material breach of this agreement. Tenant shall also prepare, execute, and.defiver to Landlord any financial statement (which will be held in confidence) reasonably, requested by a prospective lender or buyer. ' 111—LANDLORD'S TRANSFER: Tenant agrees that the transferee of Landlord's Interest shall he substituted as Landlord under this. agreement. Landlord will be released of any further obligation to Tenant regarding the security deposit, only If the security deposit is returned to Tenant upon such transfer, or if the security deposit is actually transferred to the transferee. For all other obligations under this agreement, Landlord Is released of any further liability to Tenant, upon Landlord's transfer. ;2. SUBORDINATION: This agreement shall be subordinate to all existing [lens` and, at Landlord's option, the lien of any first deed of trust or first mortgage subsequently placed upon the real property of which the Premises are a part, and to any advances made on the security of the Premises, and to all renewals, modifications, consolidations, replacements, and extensions. However, as to the lien of arty deed of trust or mortgage entered into after execution of this agreement, Tenant's right to quiet possession of the Premises shall not be disturbed if Tenant is not in default and so long as Tenant pays the Rent and observes and performs all of the provisions of this agreement, unless this agreement is otherwise terminated pursuant to its terms. If any mortgagee, trustee, or ground lessor elects to have this agreement placed in a security position prior to the lien of a mortgage, deed of trust, or ground lease, and gives written notice to Tenant, this agreement shall be deemed priorto that mortgage, deed of trust, or ground tease, or the date of recording. 3. TENANT REPRESENTATIONS; CREDIT: Tenant warrants that all statements in Tenanl'stinanchal documents and rental application are accurate. Tenant authorizes Landlord and Brokers) to obtain Tenant's credit report at time of application and periodically during tenancy in connection with approval, modification, or enforcement of this agreement Landlord may cancel this agreement: (1) before occupancy begins, upon disapproval of the credit report(s); or (11) at any time, upon discovering that Information.in Tenant's applicatfon is false. A negative credit report reflecting on Tenant's record may be submitted to a credit reporting agency, if Tenant fails to pay Rent or comply with any other obligation under this agreement. 4. DISPUTE RESOLUTION:' A.. MEDIATION: Tenant and Landlord agree to mediate any dispute or claim arising between them out of this agreement, or any resulting transaction, before resorting to arbitration or court'actian, subject to paragraph 34B(2) below. Paragraphs 346(2) and (3) apply whether or not the arbitration provision Is initialed. Mediation fees, ff any, shag be divided equally among the parties Involved. If for any dispute or claim to which this paragraph applies, any party commences an action without first attempting to resolve this matter through mediation, or refuses to mediate after a request has been made, then that. party shag not be entitled to recover attorney fees, even If they would otherwise be available to that party In any such action. THIS MEDIATION PROVISION APPLIES WHETHER OR NOT THE ARBITRATION PROVISION IS INITIALED. B. ARBITRATION OF DISPUTES: (1) Tenant and Landlord agree that any dispute ordahm In Law or equity arising between them out of this agreement or any resulting transaction, which is not settled through mediation, shall be decided by neutral, binding arbitration, including and subject to paragraphs 34B(2) and (3) below. The arbitrator shall be a retired judge or Justice, orcin attorney with at least 5 years of real estate transactional law experience, unless the parties mutually' agree to a different arbitrator, who shall render an award in accordance with substantive California Law. In all other respects, the arbitration shall be conducted In accordance with Part III, Title 9 of the California Code of Civil Procedure. Judgment upon the award of the arbitrators) may be entered In any court having Jurisdiction. The parties shag have.the right to discovery in accordance with Code of Civil Procedure §1283.05. (2) EXCLUSIONS FROM MEDIATION AND ARBITRATION: The following matters are excluded from Mediation and Arbitration hereunder. (p a Judicial or non -judicial foreclosure or other action or proceeding to enforce a deed of trust mortgage, or installment land sale contract as defined in Civil Code §2985; (ii) an unlawful detainer action; (ill) the filing or enforcement of a mechanilds fren; (hr) any matter that is wilhin the jurisdiction of a probale,.small claims, or bankr*cy court; and (v) an action for bodily Injury or wrongful death, or for latent or patent defects to which Code of CivilPro cedure §337.1 or §337.15 applies. The filing of a court action to enable the recording of notice of pending action, for order of attachment, receivership. Injunction, or other provisional remedies, shall not constitute a violation of the mediation and arbitration provisions. (3) BROKERS: Tenant and Landlord agree to mediate and arbitrate disputes or claims involving either or both Brokers, provided either or both Brokers shag have agreed to such mediation or arbitration, priorto, or within a reasonable time after the dispute pr claim is presented to Brokers. Any election by either or both Brokers to participate In mediation or arbitration shall not result in Brokers being deemed parties to the agreement. "NOTICE: BY INITIALING IN THE SPACE BELOW YOU ARE AGREEING TO HAVE ANY DISPUTE ARISING OUT OF THE MATTERS INCLUDED IN THE 'ARBITRATION OF DISPUTES' PROVISION DECIDED BY NEUTRAL ARerrRAT10N AS PROVIDED BY CALIFORNIA LAW AND YOU ARE GIVING UP ANY RiGHTS YOU MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED IN ACOURT OR JURY TRiAL. BY INITIALING IN THE SPACE BELOW YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO DISCOVERY AND APPEAL, UNLESS THOSE RIGHTS ARE SPECIFICALLY INCLUDED IN THE 'ARBITRATION OF DISPUTES' PROVISION. iF YOU REFUSE TO. SUBMIT TO ARBITRATION AFTER AGREEING TO THIS PROVISION, YOU MAY BE COMPELLED TO ARBITRATE UNDER THE AUTHORITY OF THE CALIFORNIA CODE OF CIViL PROCEDURE. YOUR AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARY." "WE HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES ARISING OUT OF THE MATTERS INCLUDED iN THE 'ARBITRATI N OF DISPUTE PROVISION TO NEU L ARBITRATION." Landlord's Initials -1— Tonanrs initials _ dQ.R. 1 e copyright laws of the United States (ii0e 17 U.S. Code) forbid the Landlord and Tenant acknowledge re r t of a copy of this authorized reproduction of this form, or any portion thereof, by photocopy page. whine or any other means, including facsimile or computerized formats. Landlord's Initials ( ) ( ) �„ ipyright ® 19ga-2001, CALIFORNIA ASSOCIATION OF REALTORS®, Tenant's initials { ) C. ALL RIGHTS RESERVED. p Reviewed by 11 REVISED 10101 (PAGE 4 of 6) Brokeror Designee Date COMMERCIAL LEASE AGREEMENT(QJ 41 PAGE 4 OF 6) Premises: 7090 Aot2rd Aveaae HarZi-uoame, CA 94010 Data Janssarn 19, ?OOd 36. JOINT AND INDIVIDUAL OBLIGATIONS: if there is more than one Tenant,,each one shag be individually and completely responsible for the Performance of all obligations of Tenant under this agreement, jointly vlrth every other Tenant, and individually, whether or not in possession. 36. NOTICE: Notices maybe served by mag, facsimile, or courier at the following address or location, or at any other Iecation subsequently designated: Lan/adlord: City of anriipgama TenantRino Bette - 50p -Primrose Road 1000 Aoxard Avenge ' Burlingame; CA 94010 - Burlingame, CA 94010 Notice is deemed effective upon the earl -les( of the following: (t) personal receipt by either party or their agent; (31) written acknowledgement of notice; Or Ceti) 5 -days after mailing notice to such location by first Gass mail, postage pre -paid. 17. WAIVER: The waiver of any breach shall not be construed as a continuing walverof the same breach ora waiver of any subsequent breach. 18. INDEMNIFICATION: Tenant shall indemnify, defend and hold Landlord harmless from all claims, disputes, Iflrgatien, judgments and attorney fees arising out of Tenants use of the Premises, _ - 9. OTHER TERMS AND CONDITIONS/SUPPLEMENTS: see addend= A. ' 39a. The $1500. received is a nca—refundable option to lease T8 tenant frill pay $1000 Per =1thbegimnier April 1, 2004. Upas operiftg' for business or 8ebruax7 1 2005 vhjch,,=curs fir t the rent x111 jack se to $2000, per month and adjust annually as per paragraph 3A(2) of tbiLs lease me muomng Ai rAcriku supptementslexhibits are incorporated in this agreement: Add mJ)= .A ' P. ATTORNEY FEES: in any action or proceeding arising out of thls, agreement, the prevailing party between Landlord and Tenant shall be entitled to reasonablet attorney fees and costs from the non -prevailing Landlord or Tenant, except as provided in paragraph 34A ENTIRE CONTRACT: Time is -of the essence. All prior agreements between Landlord and Tenant are incorporated in this agreement, which constitutes the entire contract It is intended as a final expression of the parties' agreement, and may not be contradicted by evidence of any prior agreementor contemporaneous oral agreement. The parties further ihtend that this agreement constitutes the complete and exclusive statement of its terms, and that no extrinsic evidence whatsoever may be introduced in any judicial or other proceeding, if any, involving this agreement. Any provision of this agreement that is held to be Invalid shag not affect the validity or enforceability of any other provision -in this agreement This agreement shall he binding upon, and inure to the benefit of, the hens, assignees and successors to the parties. . BROKERAGE Landlord and Tenant shall each pay to Broker(s) the fee agreed to, if any, in a sepamte written agreement. Neither Tenant nor Landlord has utilized the services of, or for any other mason owes compensation to, a licensed real estate broker (individual or corporate), agent finder, or other entity, other than as named p this agreement, in connection with any act relating. to the Premises, Including, but not limited to, inquiries, introductions, consultations, and negotiations leading to this agreement. Tenant and Landlord each agree to indemnify, defend and hold harmless the other, and the Brokers specified herein, and their agents, from and against any costs, expenses, or liability for compensation claimed inconsistent with.the warranty and representation in this paragraph 42- AGENCY 2AGENCY CONFIRMATION: The following agency relationships are hereby confirmed forthis transaction: Listing Agent Tim Aurae (Print Firm Name) is the agent of (check one): - [A the Landlord exclusively; or ❑ both the Tenant and Landlord. Selling Agent Tim Aurae (Print Firm Name) (d not same as Listing Agent) Is the agent of (check one): Elthe Tenant exclusively; or [A the Landlord exclusively; or Elboth the Tenant and Landlord. Real Estate Brokers are not parties to the agreement between Tenant and Landlord. 3 copyright laws of the United States (lige 17 U.S. Code) forbid the Landlord and Tenant acinowledgem to copy of this ruthorized reproduction of this form, or any portion thereof, by photocopy page. cline or any other means, including facsimile or computerized formats. Landlord's Initials ( ) ( ) ?yright ® 1996-2001, CALIFORNIA ASSOCIATION OF REALTORS®, Tenant's dnifials ALL RIGHTS RESERVED. - - OPPoANWIY RevIme6 by -11 REVISED 10101 (PAGES of 6) Brokeror Designee Date COMMERCIAL LEASE AGREEMENT (CL -11 PAGE 5 OF 6) - T5625954.ZE7{ Premises: 1090 Havas avenue. Hurlingame, ca 94010 Date e7anuaxv 19, 2004 Landlord and Tenant acknovaiedge and agree that Brokers: (1) do not guarantee the condition of the Premises; (ii) cannot verify representations (Wade by others; (Iii) waill not verify zoning and lane! use restrictions; (iv) cannot provide.legai or tax advice; (v) will not provide other advice or information that exceeds the"knowledge; education or experience required to obtain a real estate license. Furthermore, if Brokers are not also acting as Landlord in this agreement, Brokers: (vi) do.not decide what rental rate a Tenant should pay or Landlord should accept and (Vi)) do not decide upon the length or other terms of tenancy. Landlord and Tenant agree that they will seek legal, tax, insurance, and other desired assistance from appropriate professionals. ' Tenant 119,m4/, Date Ri.no Beth (Print name) Address 115 Hunboldt Road City Hnslinoame State CA Zip 94010 Tenant n, o 4ddress City Stats Zip _andlord '(owner or agent with authority to enter into this agreement) Citar o£ Hnrlingame . 4ddress address City Hnrlincrams State CA Zip 94010 Date_ City. state Zip \gency relationships_are confirmed as above. Real estate brokers who are not also Landlord In this agreement are not a party to the agreement between .andlord and Tenant. Zeal Estate Broker (Leas 3y (Agent) Tim Avsan Date nz'2-3-'0 1dd[ess 1323 Hernal Avenue City HurIinvame State r _ Zip 94010 -elephone (650)347-3300 Fax !6301347-3460 - E-mail Lima an@rvoridnet% att: of: teal Estate ly (Agent)_ ,ddress Date City Stale Zip Fax E-mail IIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS® (C-A.R.). NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR DEQUACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE 1ANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULTAN APPROPRIATE PROFESSIONAL lis form Is ava➢able for use by the entire real estate Indusby. R is not intended to identify the user as a REALTOR®. REALTOR& is a regLstared collective membership mark udl may be used only by members of the NATIONAL ASSOCIATION OF REALTORM who subscribe to Its Code orEthim Published and 0ia4,2ded by: h REAL ESTATE BUSINESS BERVIGE5, INC, ' e sa6s maffre CAUFORNIA AssocIATIDNOFRmioRso Reglewed by ° 5255odh Yre9 Avarua, Los Angeles, Cardamlae0olD - L-11 REVISED 10101 (PAGE 6 OF 6) 1 BrokerorDeslgnee Date COMMERCIAL LEASE AGREEMENT (CL -11 PAGE 6 OF 6) mut TSMD54.= RESOLUTION 13-2004 RESOLUTION OF THE CITY COUNCIL OF TEE CITY OF BURLINGAME APPROVING LEASE AGREEMENT WITH RINO BETTI FOR THE USE OF 1080 HOWARD AVENUE (GREYHOUND DEPOT), BURLINGAME, CALIFORNIA AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE LEASE AGREEMENT AND ADDENDUM ON BEHALF OF THE CITY RESOLVED, by the City Council of the City of Burlingame: WHEREAS, after an open request for interest from persons for the use of the Greyhound Deport at 1080 Howard Avenue, the City has been negotiating with Rino Betti to use the property as a sandwich shop; and WHEREAS, Rino Betti is willing to enter into a 10 -year lease with the City, subject to certain conditions as provided in the Lease Agreement and Addendum attached as Exhibit A hereto; and WHEREAS, the lease agreement is in the public interest in providing additional revenue for the City, updated improvements to the property, and a tenant that has been an important contributor to the Burlingame Avenue area for many years, NOW, THEREFORE, IT IS ORDERED: 1. The Lease Agreement and Addendum attached hereto as Exhibit A are approved, and the City Manager is authorized to execute the Agreement and the Addendum for and on behalf of the City of Burlingame. 2. The City Clerk is directed to witness the Manager's signature on behalf of the City. MAYOR I, ANN T. MUSSO, City Clerk of the City of Burlingame, do hereby certify that the foregoing resolution was introduced at a regular meeting of the City Council held on the 17 day of February ,2004, and was adopted thereafter by the following vote_ AYES: COUNCILMEMBERS: coFFEY, GALLIGAN, NAGEL, 0,M&RONX NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: BOCK CITY CLERK ADDENDUM A The following terms and conditions are hereby incorporated into and made a part of the Commercial Lease Agreement, dated ®Z - Z /- 041� , on the property known as 1080 Howard Avenue, Burlingame, CA (Greyhound Bus Depot),_ in which Rino Betti is referred to as Tenant, and the City of Burlingame is referred to as Landlord. 1. Tenant acknowledges the Historic Value and importance of the Premises as a former Greyhound Bus Depot. No signage, alteration, or painting of the exterior or interior of the Premises is allowed without express written consent of the City of Burlingame. 2. A. Notwithstanding any other provision of this Lease Agreement. no later than $eptembei 14, 2008, Landlord may give written notice to Tenant of termination ofthis Lease Agreement as of March 31, 2009, if (1) the City will be using the property as part of a redevlopment project, (2) the City needs use of the project in accordance with a Federal, State or County contract or (3) the City will lose funding from a Federal, State. or County agency. B. Upon such a termination, Landlord agrees to compensate Tenant forany fixtures that Tenant has purchased and placed on the Premises at sixty-five percent (65%) of the purchase price paid by Tenant for such fixtures and equipment that Tenant has elected to leave on the Premises upon Tenant's vacation of the Premises. Tenant may elect, however, to remove these fixtures rather than make them subject to compensation. under this paragraph so long as the removal complies with the other terms and conditions of this Lease Agreement.. C. The only fixtures eligible for compensation under this paragraph are those that have been documented by Tenant by submission of purchase receipts to Landlord and confirmation in writing by inspection by Landlord no later than. June 30, 2005, D. If the City exercises its termination right under this paragraph, the City shall not operate or allow others to operate a food establishment as defined in the City zoning code on this property until after April 1, 2014. Landlord and Tenant agree to meet no latex than September 30, 2013, in order to attempt to reach agreement on an extension of this Lease Agreement. However, nothing in this paragraph shall be construed as imposing an obligation on either party to actually reach such an agreement, but is solely an obligation to meet and discuss such a possibility. 4. The use of the Premises will be limited to a retail store that primarily sells sandwiches, drinks, chips, salads, soups, and pasta, and as an incidental use, sales of Sam's logo hats and t -shirts.. No alcohol, or tobacco will be sold at the Premises. Any changes or additions to this description or the nature of the use shall require the written permission of the Landlord, which may approve or deny in its sole discretion. 5. The following notice is provided pursuant to California Revenue & Taxation Code § 107A The property is owned by the City of Burlingame, and the City is exempt from real property and personal property taxes. However, this Lease Agreement between the City and the Tenant may create a possessory interest by the Tenant subject to property taxation, and the Tenant may be subject to the payment of property taxes levied on that interest by the State of California or the County of San Mateo. The Tenant shall be solely responsible for the payment of any such property taxes, 6. The Tenant shall be responsible for all landscaping and maintenance of the planting area around the building and the turf area. The Tenant shall meet the following minimum maintenance standards: A. Turf shall be cut and edged at least once a week. B. Turf shall be adequately fertilized to ensure that grass is healthy and growing vigorously. This usually means at least two fertilizations per year. Aeration as required but at least once per year. . C. Pick up of litter shall occur at least once a day, seven days a week. D. All landscaping willbe cleaned or replaced when appearance has noticeably deteriorated or an accumulation of sand, dirt, leaves, and debris distract from the appearance or safety of the area. E. The City of Burlingame will maintain the trees on the Premises. 7. All building and hard surfaces on the Premises, other than sidewalks, shall be cleaned, repaired, repainted, or replaced whenever its appearance has noticeably deteriorated or an accumulation of dirt and other effects distract from the appearance of the Premises. Walkways shall be regularly swept and kept clean. Any graffiti will be removed or painted over within twenty-four hours of its placement on any part of the Premises.. . 8. This Lease Agreement is contingent on the approval of the Planning Commission of the City of Burlingame with regard to the conditional use and parking variance for the proposed use, and if the Commission approval is appealed to the City Council, is contingent on the approval of the City Council under that appeal. 9. This Lease Agreement is further contingent on the Tenant's acceptance of the conditions that may be imposed in the Commission or Council approval (described in paragraph 8 above) given the costs of improvements made necessary by those conditions. The Tenant shall have thirty (30) days from the date of final approval by the Planning Commission, or if appealed, from the date of final approval by the City Council, to determine if the conditions of approval are . acceptable. If the Tenant finds the conditions are unacceptable, the Tenant shall notify the City of Burlingame in writing that it is cancelling the Lease Agreement, and upon giving that notice, the Tenant will forfeit the security deposit made pursuant to paragraph 6(A) of the Commercial Lease Agreement. If the Tenant fails to give such a notice.within the 30 -day period, the Lease Agreement will become fully effective. The foregoing terms and conditions are hereby agreed to, and the undersigned acknowledge receipt of this Addendum A. Date 6OS��`�-A Tenant Date c2t, � Tp F Landlord City of Burlingame �1 a2ri By Rino Bead AMENDMENT NO. 1 TO COMMERCIAL LEASE AGREEMENT BETWEEN THE CITY OF BURLINGAME FOR 1080 HOWARD AVENUE, BURLINGAME, CALIFORNIA (GREYHOUND BUS DEPOT) THIS AMENDMENT NO. 1, made and entered into this 24thday of March 2005, by and between the CITY OF BURLINGAME, a municipal corporation [hereinafter "Landlord"], and Rino Betti, dba Sam's Sandwiches [hereinafter "Tenant"], amends the Commercial Lease Agreement between the parties dated January 19, 2004 [hereinafter "Lease Agreement"]" RECITALS and WHEREAS, the Tenant has paid for improvements to the sewer system at the Property; WHEREAS, an interim rent reduction appear''to be a fair way to reimburse the Tenant for these expenses, NOW, THEREFORE, IT IS AGREED AS FOLLOWS: 1. Lease payments shall be as follows: month; a. The Lease Payments due from February. 1, 2005 to October 1, 2005 shall be $1,000 per b. The Lease Payment due on November 1, 2005, shall be $1,500. c. "Lease Payments due on or after December 1, 2005, shall be $2,000 per month as stated in the Commercial Lease Agreement and adjust annually as per paragraph 3A(2) of the Commercial Lease Agreement. 2. Except as expressly amended in this Amendment No. 1, all other terms and conditions contained in the Commercial Lease Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties have executed this Amendment No. I on the day and year first above written. CITY OF BURLINGAME 4 By r City Manager .l Attest: B' 1 L - Ci Clerk TENANT Rino Betti Approved as to,for3n: City Attorney