HomeMy WebLinkAbout101303 CSC Agenda
AGENDA
TEMECULA COMMUNITY SERVICES COMMISSION
TO BE HELD AT
TEMECULA CITY HALL
MONDAY, OCTOBER 13, 2003
6:00 P.M.
CALL TO ORDER:
Chairman Tom Edwards
FLAG SALUTE:
Commissioner Henz
ROLL CALL:
Henz, Hogan, Meyler, Edwards
PRESENTATIONS:
Matthew Fagan
PUBLIC COMMENTS:
A total of 15 minutes is provided so members of the public can address the
Commissioners on items that are not listed on the Agenda. Speakers are limited
to three (3) minutes each. If you desire to speak to the Commissioners about an
item not listed on the Agenda, a green "Request to Speak" form should be filled
out and filed with the Commission Secretary.
When you are called to speak, please come forward and state vour name and
address.
For all other agenda items, a "Request to Speak" form must be filed with the
Community Services Commission Secretary before the item is addressed by the
Commission. There is a three (3) minute time limit for individual speakers.
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DIVISION REPORTS
COMMISSION BUSINESS
1. Bovs and Girls Club Lease Aareement
RECOMMENDATION:
1.1 That the Community Services Commission approve the Boys
and Girls Club Ground Lease Agreement in its substantial
form.
2. Harveston Public Art
RECOMMENDATION:
2.1 That the Community Services Commission approve the
Harveston Public Art Program.
COMMUNITY SERVICES DIRECTOR'S REPORT
COMMUNITY SERVICES COMMISSIONER'S REPORTS
ADJOURNMENT
That the Community Services Commission adjourn to the regularly scheduled
meeting on Monday, November 10, 2003, 6:00 pm atTemecula City Hall Council
Chambers, 43200 Business Park Drive, Temecula, CA 92592.
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ITEM NO. 1
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CITY OF TEMECULA
AGENDA REPORT
TO:
FROM:
Community Services Commission
Herman D. Parker, Director of Community serviceQ
October 13, 2003
DATE:
RE:
Boys and Girls Club Lease Agreement
RECOMMENDATION: That the Community Services Commission approve the
Boys and Girls Club Lease Agreement in its substantial form.
BACKGROUND: At the request of Mayor Pro Tem Mike Naggar and Council
Member Jeff Comerchero, and the Boys and Girls Club of Southwest County, the City of
Temecula Community Services Department has been working with the Boys and Girls
Club to initiate a ground lease agreement. The agreement would enable the Boys and
Girls Club will construct a satellite Boys and Girls Club facility of approximately 6,000
square feet. The building would be a modular unit facility with good design and
landscaping. The building would be located at Kent Hintergardt Memorial Park just
south of the existing restroom facility and east of the existing parking lot area.
The facility would enable the Boys and Girls Club to provide a variety of youth recreation
activities and classes. The proposed facility is ideally located within Kent Hintergardt
Memorial Park, and directly across the street from a new middle school that recently
opened. This would provide good access for middle school age children to after school
activities at the Boys and Girls Club.
The term of the Ground Lease Agreement would be for 40 years with an option to renew
for an additional 10 year period. The lease payment would be $1 per year payable on
the first business day of each year. The agreement emphasizes that the modular facility
must be of good quality with landscape screening around the building and of similar
architectural style as the restroom facility on the park site. The Boys and Girls Club
would be responsible for the maintenance, repairs and utility costs associated with the
facility. No alterations to the building could occur without the City's approval. The Boys
and Girls Club would be required to maintain comprehensive General Liability insurance
at all times.
The agreement also creates two milestones that the Boys and Girls Club must meet. On
or before July 1, 2005, the Boys and Girls Club must submit a conceptual master plan of
the improvements for approval and also provide evidence that they have two-thirds of
the cost to construct the facility. The placement of the modular facility and
improvements to the facility must be completed and the facility opened and operating by
June 1, 2007.
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This agreement has been reviewed and approved by the City Attorney and with the
-Commission's approval tonight, the Ground Lease Agreement will be forwarded to the
City Council for their review and approval at their October 28, 2003 City Council
Meeting.
Attachment: Ground Lease Agreement
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GROUND LEASE
by and between
CITY OF TEMECULA,
a municipal corporation,
as Landlord
and
BOYS AND GIRLS CLUB OF SOUTHWEST COUNTY,
a California nonprofit corporation
as Tenant
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10/8/03
TABLE OF CONTENTS
PS2e No.
ARTICLE I PREMISES................................................................................................................. 1
1.1 Demise ....................................................................................................... .... 1
1.2 Condition of Land and Property .................................................................... I
ARTICLE 2 TERM......................................................................................................................... 1
2.1 Term .............................. ................................... .............................................. 1
2.2 Extension Option ........................................................................................... I
2.3 Holdover .......................................................... .......................... .................... 2
ARTICLE 3 RENT .........................................................................................................................2
3.1 Base Rent ......................................................... .............................................. 2
ARTICLE 4 TAXES AND IMPOSITIONS................................................................................... 2
4.1 Impositions.................. .............. ....................... ............... ........................... .... 2
4.2 Proration of Taxes.............................................. ............................................ 3
4.3 Evidence of Payment .....................................................................................3
4.4 Assessment Districts ...................................................................................... 3
4.5 Duty to File Declarations ............................................................................... 3
4.6 Payment Through Landlord........................................................................... 3
4.7 Personal Property ...........................................................................................3
ARTICLE 5 TRIPLE NET LEASE................................................................................................ 4
ARTICLE 6 PERMITS AND APPROVALS................................................................................. 4
6.1 Governmental Approvals............................................................................... 4
6.2 No Representations ........................................................................................ 4
ARTICLE 7 MAINTENANCE, REPAIR AND ALTERATIONS................................................ 4
7.1 Maintenance and Repair ................................................................................ 4
7.2 Alterations........................................................ .............................................. 4
ARTICLE 8 INSURANCE............................................................................................................. 6
8.1 Insurance ........................................................................................................ 6
8.2 Policy Requirements ......................................................................................7
8.3 Blanket Policy................................................................................................ 7
8.4 Right of Landlord to Obtain Insurance ..........................................................7
8.5 Waiver of Subrogation................................................................ ................... 7
ARTICLE 9 DAMAGE AND DESTRUCTION............................................................................8
9.1 Landlord's Rights and Obligations ................................................................8
9.5 Waiver of Statutory Provisions...................................................................... 8
ARTICLE 10 EMINENT DOMAIN ..............................................................................................8
10.1 Total Taking................................................................................................. 8
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10.2 Partial Taking................................................... ............................................ 8 .
10.3 Temporary Taking ....................................................................................... 9
10.4 Entitlement to Condemnation Award .......................................................... 9
10.5 Landlord Appointed Attorney-in-Fact ......................................................... 9
1 0.6 Waiver....... ............................ ........................... ............................................ 9
ARTICLE 11 UTILITIES ............ ........... ........................................................ .............................. 10
11.1 Payment............................... ....................................................................... 10
11.2 Installation.................................................................................................. 10
ARTICLE 12 LANDLORD'S ACCESS AND INFORMATION ............................................... 10
12.1 Inspections ....................................................... .......................................... 10
12.2 Showing Premises ... ................................................................................... 10
12.3 Information ................... .................................................... ......................... 10
ARTICLE 13 USE .......................... .............................................................................................. 10
13.1 Use ... ............ .............................................................................................. 10
13.2 Manner of Use........................................................ .................................... 11
13.3 Compliance with Law................................................................................ 11
ARTICLE 14 ASSIGNMENT AND SUBLETTING................................................................... 11
14.1 Consent Required.......................................................................................11
14.2 Additional Conditions................................................................................11
14.3 12
14.4 Violations Void; Remedies ........................................................................ 12
14.5 Transfer of Landlord's Interest .................................................................. 12
ARTICLE 15 DEFAULTS AND REMEDIES............................................................................. 12
15.1 Default........................................................................................................ 12
15.2 Remedies.................................................................................................... 13
15.3 Landlord's Default ..................................................................................... 14
ARTICLE 16 TENANT'S PROPERTy.......................................................................................14
ARTICLE 17 FEE MORTGAGES............................................................................................... 14
17.1 Encumbrance of Reversion........................................................................ 14
17.2 Recognition of Lease ................................................................................. 14
17.3 Notice to Fee Mortgagee............................................................................ 15
ARTICLE 18 INDEMNITY AND EXEMPTION OF LANDLORD FROM LIABILITy......... 15
18.1 Indemnity ................................................................................................... 15
18.2 Exemption of Landlord From Liability...................................................... 15
18.2 Survival...................................................................................................... 16
ARTICLE 19 ESTOPPEL CERTIFICATES ............................................................................... 16
ARTICLE 21 HAZARDOUS MATERIALS ............................................................................... 16
20.1 No Hazardous Materials ............................................................................16
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20.2 Notice ......................................................................................................... 16
20.3 Indemnity...... ........................ ................. .................................................... 16
20.3 Indemnity ................................................................................................... 17
20.4 Hazardous Material Defined ...................................................................... 17
20.5 Laws ................... ...................... .................. ........... ......... ............................ 17
ARTICLE 21 SURRENDER........................................................................................................ 17
ARTICLE 22 GENERAL PROVISIONS .................................................................................... 18
22.1 Non- W aiver.................................................................... ............................ 18
22.2 Attorneys' Fees; Waiver of Jury Trial....................................................... 18
22.3 Broker's Commissions.......... ..................................................................... 18
22.4 Severability; Entire Agreement.................................................................. 18
22.5 Notices .................................................................. ............ ......... ................ 19
22.6 Further Assurances..................................................................................... 19
22.7 Governing Law.......................................................................................... 19
22.8 Successors and Assigns..............................................................................20
22.9 Time of Essence ..................................................... ............................... ..... 20
22.10 Headings; Joint and Severa1...................................................................... 20
22.11 No Option..................................................................................................20
22.12 Right of Landlord to Perform ................................................................... 20
22.13 Survival of Obligations............................................................................. 20
22.14 Relationship of Parties .............................................................................. 20
22.15 Exhibits and Addenda............................................................................... 20
22.16 Execution in Counterparts......................................................................... 20
EXHIBITS
Exhibit "A" - Legal Description of Land
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GROUND LEASE
THIS GROUND LEASE (the "Lease") is dated as of October -' 2003 and is entered
into by and between the CITY OF TEMECULA, a municipal corporation ("Landlord"), and
BOYS AND GIRLS CLUB OF SOUTHWEST COUNTY, a California nonprofit corporation
("Tenant").
WHEREAS, as of the date of this Lease, Landlord is the owner of record of that certain
land located in the City of Temecula, County of Riverside, State of California in Temecula,
California that is more particularly described on Exhibit "A" attached hereto (said land and any
and all improvements now or hereafter located thereon, are hereinafter collectively referred to as
the "Premises").
WHEREAS, Landlord desires to lease to Tenant, and Tenant desires to lease from
Landlord, the Premises, subject to and in accordance with the terms and conditions hereinafter
set forth.
ARTICLE 1
PREMISES
1.1 Demise. Landlord hereby leases the Premises to Tenant and Tenant hereby leases the
Premises from Landlord, subject in each case to: (i) all covenants, conditions, restrictions,
easements and other matters of record and any other matters affecting title thereto (including
matters visible upon inspection or that would be revealed by an ALTA survey), and (ii) the terms
and conditions hereinafter set forth.
1.2 Condition of Premises. Tenant acknowledges that it has had full opportunity to
investigate the Prernises and has full knowledge of the condition of the Premises. Tenant accepts
the Premises in its current "AS-IS" condition, with all faults, as of the execution of this Lease.
Except as expressly provided herein, Tenant acknowledges that neither Landlord nor any agent
or employee of Landlord has made any representation, express or implied, as to the condition of
the Premises or the suitability of the same for Tenant's intended use. Tenant represents and
warrants that Tenant has made its own inspection of and inquiry regarding the condition of the
Premises and is not relying on any express or implied representations of Landlord, any agent or
employee of Landlord, or any broker with respect thereto.
ARTICLE 2
TERM
2.1 Term. The term of this Lease ("Lease Term") shall be for forty (40) years,
commencing on November I, 2003 ("Commencement Date") and terminating at rnidnight on
November 1, 2043, unless sooner terminated in accordance with the terms hereof. As used
herein the term "Lease Year" shall mean the twelve (12) month period commencing on the
Commencement Date and each successive twelve (12) month period thereafter during the term
hereof.
2.2 Extension Ootion. Provided that: (a) this Lease is in full force and effect; (b)
Tenant is not in default hereunder beyond any applicable notice and cure period at the time it
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gives notice of extension or at the beginning of the extension term; (c) this Lease had not been
assigned, then Tenant shall have the option to extend the Lease Term for ten (10) years (the
"Extension Term") by notice in writing delivered to Landlord not later than six (6) months prior
to the expiration of the initial Lease Term. All of the covenants, conditions and provisions of
this Lease shall be applicable to the Extension Term.
2.3 Holdover. If Tenant holds over or otherwise fails to comply with Article 21
hereof after the expiration or earlier termination of the Lease Term without the express written
consent of Landlord, Tenant shall become a tenant at sufferance only, and the Base Rent for such
holdover period shall be increased to the fair market rental rate for the Premises, as determined
in good faith by Landlord. Acceptance by Landlord of rent or any other payment after such
expiration or earlier termination of this Lease shall not constitute Landlord's consent to a
holdover hereunder or result in a renewal. The foregoing provisions of this Section 2.3 are in
addition to and shall not be deemed to limit or constitute a waiver of Landlord's right of re-entry
or any rights of Landlord or Tenant under this Lease or otherwise provided by law or equity. If
Tenant fails to surrender the Land or to otherwise comply with Article 21 hereof upon the
expiration or earlier termination of this Lease without Landlord's express written consent,
Tenant shall indemnify and hold Landlord harmless from all loss, liability, cost, damage and
expense, including without limitation, attorneys' fees and costs, arising from or relating to
Tenant's failure to surrender or to otherwise comply with Article 21 hereof, including, without
lirnitation, any claim made by any succeeding tenant, founded on or resulting from such failure
to surrender.
ARTICLE 3
RENT
3.1 Base Rent. Tenant shall pay to Landlord annual base rent ("Base Rent") of One
dollar ($1.00) on the first business day of each calendar year during the term of this Lease.
3.2 Definition of Rent. All monetary obligations of Tenant to Landlord under the terms
of this Lease, including but not limited to rent, late charges, interest, insurance premiums, and
real estate taxes, are deemed to be rent hereunder (collectively, "Rent").
ARTICLE 4
TAXES AND IMPOSITIONS
4.1 Impositions. Tenant shall pay and discharge before the day when the same become
delinquent, any and all taxes, assessments, rates, charges, license fees, municipal liens, levies,
excises, or imposts, whether general or special, or ordinary or extraordinary, of every name,
nature and kind whatsoever, including all governmental charges of whatsoever name, nature or
kind which may now or hereafter be levied, assessed, charged or imposed against or which rnay
become a lien or charge upon the Prernises or any part thereof, or upon Tenant's estate hereby
created or upon Landlord by reason of its ownership of the fee underlying this Lease
(collectively, "Impositions"). Landlord shall have no obligation to payor discharge any
Imposition or any penalties or interest resulting from late payment, except to the extent that
Landlord did not provide Tenant sufficient information for the timely payment of any
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Imposition, penalty or interest not less than thirty (30) days prior to the date that such payment
would become delinquent.
4.2 Proration of Taxes. All of the taxes, assessments, charges, imposts and levies of any
nature whatsoever, which shall relate to a fiscal year during which the Lease Term (and
Extension term, if applicable) shall commence or terminate, shall be prorated between Landlord
and Tenant as of the commencement or termination date, as applicable.
4.3 Evidence of Payment. Within fifteen (15) days after written request of Landlord,
Tenant shall obtain and deliver to Landlord evidence of payment of all Impositions, including,
without limitation, receipts or duplicate receipts.
4.4 Assessment Districts. If any governmental entity or agency shall undertake to create
an improvement or special assessment district, the proposed boundaries of which include any
portion of the Premises, Tenant shall not support the same without the prior written consent of
Landlord. In the event Tenant receives any notice or other information relating to the proposed
creation of any such district, Tenant shall inunediately advise Landlord in writing of such receipt
and shall provide Landlord with a copy of such notice or information. In the event that any such
improvement or assessment district is created, all taxes, assessments, charges, levies, or imposts
arising therefrom shall be paid by Tenant as an Imposition hereunder; provided, however, if
Landlord has the option to elect that any tax, assessment, charge, levy or impost to finance such a
special irnprovement be payable in installments, then Landlord shall make such election, and
Tenant shall only be required to pay such installments as shall become due and payable during
the Lease Term (as it may be extended), appropriately prorated for the years at the
commencement and termination of the Lease Term (as it may be extended).
4.5 Duty to File Declarations. Tenant alone shall make or file any declaration, statement
or report which may be provided or required by law as the basis of or in counection with the
determination, equalization, reduction or payment of any and every Imposition which is to be
borne or paid or which may become payable by Tenant under the provisions of this Article 4, and
Tenant shall promptly give Landlord copies thereof. Landlord shall not. be or become
responsible to Tenant therefor, nor for the contents of any such declaration, statement or report.
4.6 Payment Through Landlord. In case any person or entity to whom any sum is directly
payable by Tenant under this Article 4 shall refuse to accept payment of such sum from Tenant,
and Tenant knows or has reason to believe that its payment will be refused, Tenant shall pay
such sum directly to Landlord not less than fifteen (15) days prior to its being due, and Landlord
shall thereupon pay such sum to such person or entity. Landlord shall not be responsible for any
late charge or penalty that may be assessed in connection therewith.
4.7 Personal Prooertv. Throughout the Lease Term, Tenant shall pay and discharge,
when and as the same become due, directly to the taxing authority, all taxes, assessments and
other charges imposed or levied upon any personal property situated in, on or about the
Prernises. Tenant shall use commercially reasonable efforts to cause such personal property
taxes to be levied or assessed separately from the Premises.
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ARTICLE 5
TRIPLE NET LEASE
It is the purpose and intent of Landlord and Tenant that all Rent payable to Landlord
hereunder shall be absolutely net of all costs and expenses to Landlord that relate in any way to
the Premises, including, without limitation, any and all maintenance, repair, utility and operation
costs and that Tenant will pay all such costs and expenses unless otherwise expressly provided in
this Lease.
ARTICLE 6
PERMITS AND APPROVALS
6.1 Governmental Approvals. Tenant acknowledges and agrees that it shall be the
responsibility of Tenant to obtain, at Tenant's sole cost and expense, any and all governmental
approvals, including, but not limited to, all permits, licenses, variances, zoning changes, which
are required by any governmental or regulatory authority in connection with the construction,
use, occupancy or operation of the Premises or the conduct of Tenant's business upon the
Premises (hereinafter referred to collectively as "Governmental Approvals").
6.2 No Representations. Landlord makes no representations or warranties concerning the
Premises or any matters with respect thereto. Landlord has made no investigation of the status of
the zoning or other governmental laws, statutes, ordinances, rules, regulations, actions or
approvals affecting or regulating the Premises or its operation and Tenant is entering into this
Lease based on its own investigation and analysis of the Premises and all such matters pertaining
thereto.
ARTICLE 7
MAINTENANCE. REPAIR AND ALTERATIONS
7.1 Maintenance and Repair.
7.1.1 Tenant's Obligations. Tenant covenants and agrees, at all times during the
Lease Term (as it may be extended) to maintain and keep the Prernises, at its sole cost and
expense, in compliance with (I) all applicable laws, rules, ordinances, orders and regulations,
and all changes thereto (whether or not they require alterations to the Premises) and (2) the
requirements of all insurance companies insuring all or any part of the Prernises.
7.1.2 Landlord's Obli2ations. It is intended by the parties hereto that Landlord
have no obligation, in any manner whatsoever, to modify, alter, improve, repair or maintain the
Premises, all of which obligations are intended to be those of Tenant. It is the intention of the
parties hereto that the terms of this Lease govern the respective obligations of the parties as to
maintenance and repair of the Premises and the making of improvements or alterations required
by law, and they expressly waive the benefit of any law, rule, regulation, statute or court decision
now or hereafter in effect to the extent it is inconsistent with the terms of this Lease.
7.2 Alterations Generallv. Tenant may not make improvements, additions or alterations
to the Premises ("Alterations") without Landlord's prior written consent, which shall not be
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unreasonably withheld, after receipt of plans and specifications therefor and satisfaction of the
following additional conditions:
7.2.1 No Alterations shall be undertaken until Tenant shall have procured and
paid for, so far as the same may be required, from time to time, all permits and authorizations of
all governmental authorities having jurisdiction.
7.2.2 All Alterations shall be reasonably pursued to completion and done in
reasonable workmanlike manner and in compliance with all applicable permits and
authorizations and all applicable laws.
7.2.3 Before any work of demolition or construction is commenced, Tenant
shall notify Landlord of Tenant's intention to commence any Alterations in or to the Premises or
other Improvements at least ten (10) business days before commencement. Landlord shall have
the right to go upon and inspect the Premises at all reasonable times upon not less than twenty-
four (24) hours prior written notice, and shall also have the right at any time to post and keep
posted thereon notices of non-responsibility or such other notices which Landlord may deem to
be proper for the protection of Landlord's interest in the Premises.
7.2.4 Tenant shall indemnify, defend and hold Landlord and its agents and
employees harmless from and against all claims, liabilities, damages, costs and expenses
(including without limitation, attorneys' fees) arising out of or with respect to liens for labor or
materials supplied or claimed to be supplied in connection with Alterations done by or for
Tenant. Should Tenant fail to fully discharge or remove any such lien within twenty (20) days,
Landlord, at its option, may remove such lien by payment of the sum claimed or bonding. Any
amounts so paid by Landlord, together with interest thereon at a rate equal to the Interest Rate
from the time of payment until repayment, shall be repaid by Tenant within ten (10) business
days after written demand by Landlord.
7.2.5 Prior to making any Alterations, Tenant and Tenant's subcontractors and
agents shall obtain Workers' Compensation and commercially reasonable Builder's Risk and
Liability Insurance covering all persons employed in connection with such demolition or
construction and with respect to whom death or bodily injury claims could be asserted against
Landlord, Tenant or the Premises.
7.2.6 Upon the substantial completion of any Alteration, Tenant shall promptly
prepare and deliver to Landlord, at Tenant's cost, a complete set of as-built plans showing the
Alterations as constructed.
7.2.7 Landlord's review and approval of Alterations or plans therefor shall not
constitute an assumption of any liability for the design, engineering or structural integrity of the
Alterations proposed to be erected or performed by Tenant, or constitute a waiver of any permits
or approvals required from Landlord in its capacity as a governmental entity (as opposed to its
capacity as the Landlord under this Lease).
7.3 Initial Improvements. On or before July 1, 2005, Tenant shall: (i) provide
Landlord with a conceptual master plan for the physical improvements for the Club (as defined
in Article 13); and (ii) provide Landlord with reasonable evidence acceptable to Landlord that
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Tenant has the funds necessary to pay at least two-thirds of the costs of constructing the Club.
Tenant shall, at Tenant's sole cost and expense, thereafter diligently construct and complete the
physical improvements for the Club in a good and workmanlike manner, and in compliance with
all applicable laws, permits and governmental approvals (and Section 7.2), on or before June 1,
2007, and Developer shall also open the Club for business on or before June 1, 2007.
7:4 Modular Units. Tenant may place or install "modular units" (i.e., so called
"portables") on the Premises, provided Tenant complies with the following provisions: (i) all
modular units shall be screened from the public streets and gathering spaces in such a way as to
be unnoticeable to the greatest possible degree; this screening may include a combination of the
following: permanent buildings or structures, screening walls and landscaping. In addition, all
other landscape and site layout criteria required by the City of Temecula Development Code and
Design Guidelines shall also apply to modular units; (ii) if a modular unit is not visible from a
street or public gathering place, the modular unit shall provide at least minimal design
compatibility with the surround area; examples of minimal design compatibility include the use
of exterior trim elements, similar colors, and other features to soften the appearance of the
structure; and (iii) modular units that are potentially visible from the public street shall have
architectural detailing similar to permanent structures; examples include: accentuated entrances,
pop-out features, windows, integrated with the minimal design compatibility components
described above, but supplemental landscaping, to further screen the modular unit may also be
required.
7.5 Ownership of Improvements. All improvements and alterations made by Tenant,
and all modular units not promptly removed by Tenant, shall becorne the property of Landlord
upon the expiration or entire termination of this Lease.
ARTICLE 8
INSURANCE
8.1 Insurance. Tenant shall maintain or cause to be maintained, at its sole cost and
expense, the following insurance with respect to the Premises:
8.1.1 Liability Insurance. Comprehensive general liability insurance against
any and all liability of the insured for personal injury, death, or property damage with respect to
or arising out of the ownership, maintenance, use or occupancy of the Premises, and all
operations incidental thereto including, but not limited to, structural alterations, new construction
and demolition, including a broad form commercial general liability endorsement covering the
insuring provisions of this Lease and the performance by Tenant of the indemnity agreements set
forth in this Lease, the insurance to have limits of not less than Five Million Dollars
($5,000,000.00) for bodily injury, personal injury and property damage liability.
8.1.2 Worker's Compensation Insurance. Worker's Compensation insurance
covering all persons employed by Tenant in the conduct of its business on the Premises, or as
required by law from time to time.
8.1.3 Special Cause of Loss. "Special Cause of Loss" property insurance on the
improvements in an amount not less than the full insurable value on a replacement cost basis of
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the improvements on the Land and Tenant's trade fixtures. During all construction periods, such
policy shall be written in the so-called "Builder's Risk Completed Value Non-Reporting Form"
with no coinsurance requirement and shall contain a provision granting the insured permission to
complete.
8.2 Policv Requirements. All insurance required under this Lease shall: (A) have
Landlord named as additional insured; (B) state that the insurance afforded to each of the above-
named insureds shall be primary insurance and any other valid and collectible insurance
available to either of the insureds shall be excess insurance and under no circumstances shall be
considered contributory; (C) provide that coverage shall not be revised, canceled or reduced until
at least thirty (30) days written notice of such revision, cancellation or reduction has been given
to Landlord (except in the event of cancellation for nonpayment of premium, which notice shall
be provided at least ten (10) days prior to cancellation); and (D) be issued by insurance
companies which are qualified to do business in the State of California and having a rating of not
less than A-VIII in Best's Insurance Guide.
8.3 Blanket Policv. Any or all insurance required under this Lease may be part of a
blanket policy or policies of insurance maintained by Tenant covering the risks to be insured
against under this Lease so long as the coverage required under this Lease is not dirninished.
8.4 RilZht of Landlord to Obtain Insurance. Prior to the Commencement Date, and
thereafter not less than thirty (30) days prior to the expiration date of each policy theretofore
furnished pursuant to this Article 8, Tenant shall deliver to Landlord, in the manner required for
notices, copies or certificates of all insurance policies required by this Lease or, alternatively,
proof acceptable to Landlord that such insurance has been or will be obtained prior to the
Commencement Date or the expiration date of such policies, as applicable. If Tenant fails or
refuses to procure or to maintain insurance as required by this Lease, or fails or refuses to furnish
Landlord with proof acceptable to Landlord that the insurance has been or will be procured
within five (5) business days following Landlord's demand for such proof, Landlord shall have
the right, at Landlord's election, to procure and maintain such insurance, in addition to all other
rights and remedies Landlord may possess on account of such default. The premiums paid by
Landlord in such event shall be treated as rent due from Tenant to be paid on the first day of the
next month following the date on which the premiums were paid, with interest at a rate equal to
the Interest Rate from the time of payment until repayment. Landlord shall give prompt notice
of the payment of such premiums, stating the amounts paid and the names of the insurer or
insurers to whom such prerniums were paid.
8.5 Waiver of Subro2ation. Landlord and Tenant each agree to have their respective
insurance companies issuing insurance with respect to the Premises waive any rights of
subrogation that such companies may have against Landlord or Tenant, as the case may be.
Landlord and Tenant hereby waive any and all rights of recovery against the other, or against the
officers, employees, agents and representatives of such other party, for loss of or damage to such
waiving party or its property or the property of others under its control, arising from any cause
insured against under any insurance policies required to be carried by this Article 8 or under any
other policy of insurance carried by such waiving party, to the full extent permitted by such
policies.
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ARTICLE 9
DAMAGE AND DESTRUCTION
9.1 Rililits and Obli2ations. If the improvements now located or hereafter constructed
or installed on the Premises or any part thereof are damaged by fire or other casualty, Tenant
shall diligently restore said improvements to their condition prior to the damage, at Tenant's sole
cost and expense.
9.2 Waiver of Statutorv Provisions. The provisions of this Lease, including this
Article 9, constitute an express agreement between Landlord and Tenant with respect to any and
all damage to, or destruction of, all or any part of the improvements on Premises, and any statute
or regulation of the state in which the Premises are located, including, without limitation,
Sections 1932(2) and 1933(4), and 1941 and 1942 of the California Civil Code, with respect to
any rights or obligations concerning damage or destruction in the absence of an express
agreement between the parties, and any other statute or regulation, now or hereafter in effect,
shall have no application to this Lease or any damage or destruction to all or any part of the
improvements on the Premises.
ARTICLE 10
EMINENT DOMAIN
10.1 Total Takin2. If (i) the whole of the Premises shall be taken in any Condemnation
Proceedings (as defined below), or (ii) if a portion of the Premises shall be taken as to make it
imprudent or unreasonable to use the remaining portion for the purposes permitted by this Lease,
or (iii) if access to the Premises is substantially impaired as a result of any taking (a "Total
Taking"), then this Lease shall terminate and expire on the date of surrender of possession of the
Premises, or such portion thereof, to the condemning authority. Tenant shall continue to pay the
rent hereunder and, in all other respects, observe and perform all of the terms, covenants,
agreements, provisions, conditions and limitations of this Lease to be observed and performed by
Tenant until the date of surrender of possession. "Condemnation Proceeding" shall mean the
exercise of any power or right of eminent domain or condemnation by those authorized to
exercise such right, or any agreement between Landlord and those authorized to exercise such
rights.
10.2 Partial Taking. If only a part of the Premises shall be permanently taken, and the
taking of such part does not make it unreasonable to use the remaining portion thereof for the
then current use of the Premises as determined by Tenant, in its sole discretion (a "Partial
Taking''), Landlord or Tenant may have the right to terminate this Lease upon thirty (30) days'
prior written notice to the other party, but not later than thirty (30) days of such taking. If neither
party terminates this Lease, and a portion of the Prernises is taken, Tenant shall make any repairs
necessary to restore the functionality of the remaining Premises, and rent shall be abated with
respect to the part of the Prernises taken. Tenant shall pay for all costs of restoring the
functionality of the remaining Premises. Landlord shall be entitled to receive the entire amount
of any award or payment made in connection with such taking, except that Tenant shall be
entitled to awards of severance damages and awards for the value of the portion of buildings (not
land) taken and Tenant may file a separate claim against the condemning authority for the taking
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of Tenant's personal property within the Premises and for Tenant's relocation expenses,
provided such claims are separately payable to Tenant.
10.3 Temporary Taking. If the temporary use of the whole or any part of the Premises
shall be taken by any Condemnation Proceeding for a period of not more than one hundred
twenty (120) consecutive days (a "Temporary Taking"), (i) Tenant shall give prompt notice
thereof to Landlord, (ii) the Lease Term (as it may have been extended) shall not be reduced or
affected in any way, (iii) Tenant shall continue to pay in full the annual Base Rent and other
charges herein reserved without reduction or abatement, (iv) except to the extent prevented by
reason of any order of the condemning authority, Tenant shall continue to perform and observe
all of the other covenants, conditions and agreements of this Lease to be performed or observed
by Tenant; and (v) Tenant shall be entitled to receive from the award (if any) made by the
applicable government authority, any amounts properly allocated to the temporary loss of use of
the Premises by Tenant.
10.4 Entitlement to Condemnation Award. Except as expressly provided in other
provisions of this Lease, condemnation awards and/or payments shall be the property of
Landlord, whether such awards shall be made as compensation for diminution in value of the
leasehold, the value of the part taken, or for severance damages without regard to whether or not
this Lease is terminated pursuant to the provisions of this Article 10 provided, however, that
(i) Tenant shall be entitled to receive the portion of any award designated as compensation for
Tenant's personal property and fixtures, and (ii) in the event this Lease is terminated pursuant to
the provisions of this Article 10, Tenant shall also be entitled to sums specifically awarded to
Tenant for Tenant's relocation and moving expenses.
10.5 Landlord Appointed Attorney-in-Fact. In the event any action is filed to condemn
the Land, the improvements thereon, Tenant's leasehold estate or any part thereof, by any public
or quasi-public authority under the power of eminent domain, or in the event that any action is
filed to acquire the temporary use of the Land, the improvements thereon, Tenant's leasehold
estate or any part thereof, or in the event that any such action is threatened or any public or
quasi-public authority communicates to Landlord or Tenant its desire to acquire the Land, the
improvements thereon, Tenant's leasehold estate or any part thereof, or the temporary use
thereof, by a voluntary conveyance or transfer in lieu of condemnation, then Tenant shall give
prompt notice thereof to Landlord after Tenant obtains actual knowledge of same. Tenant shall
reasonably cooperate in a commercially reasonable and timely manner with Landlord to
maximize any award. No agreement, settlement, conveyance or transfer to or with the
condemning authority shall be made without the consent of Landlord.
10.6 Waiver. Landlord and Tenant agree that the terms of this Lease shall govern the
effect of any Total Taking, Partial Taking or Temporary Taking and hereby waive the provisions
of any present or future law, rule, regnlation, statute or court decision, including, without
limitation, Section 1265.130 of the California Code of Civil Procedure, to the extent inconsistent
herewith.
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ARTICLE 11
UTILITIES
11.1 Payment. Tenant agrees to pay, as and when due, all charges for utilities,
including, without limitation, water, sewer, oil, gas, telephone, electricity and public utilities
(hereinafter collectively referred to as "utilities") incurred by Tenant in connection with its or
any other's use of the Premises. No interruption in any utilities shall result in an abatement of
Rent hereunder or entitle Tenant to terminate this Lease, except to the extent such interruption is
directly caused by Landlord or any of its officers, employees, agents or contractors.
11.2 Installation. Tenant shall pay any and all fees or other charges for the installation
of or connection to oil, gas, electricity, water, telephone, sanitary sewer, storm or drainage sewer,
and any and all other utilities as Tenant may require for its intended use of the Premises.
ARTICLE 12
LANDLORD'S ACCESS AND INFORMATION
12.1 Inspections. Tenant will permit Landlord and its authorized agents and
representatives to enter the Premises at all reasonable times for the purposes of protecting
Landlord's interest in the Premises and investigating whether Tenant is complying with this
Lease upon at least twenty-four (24) hours' notice to Tenant.
12.2 Showin2 Premises. Landlord shall also have the right to enter the Premises at any
time for the purpose of exhibiting the same to prospective purchasers or mortgagees, for the
purpose of showing the same to prospective tenants, provided that any such entry shall cause as
little disturbance to Tenant as reasonably practicable, and Tenant receives at least twenty-four
(24) hours' prior written notice from Landlord.
12.3 Information. In the event Landlord contemplates a sale of its interest in the Land
or undivided interest therein, or if required by a Fee Mortgagee or prospective Fee Mortgagee (as
defined in Article 17), Landlord may request in writing from Tenant and Tenant, within thirty
(30) days after such request, shall deliver to Landlord copies of the then current financial
statements of Tenant and its constituent owners (collectively, the "Information"). All such
Information shall be held by Landlord in confidence for Landlord's own use, except the same
may be disclosed to Landlord's professional advisors, to prospective purchasers of the Premises
and to Fee Mortgagees and prospective Fee Mortgagees; provided that any such disclosure shall
be subject to the agreement by the party receiving the Information that the same shall be held in
confidence.
ARTICLE 13
USE
13.1 Use. Subject to Article 6 above, Tenant may use the Prernises for a "boys and
girls club" providing recreational programs for children (the "Club"). At least eighty percent
(80%) of the memberships in the Club must be held by residents of the City of Temecula, and
Tenant shall provide evidence of the identity and residency of its members in writing from time
to time promptly after written request from Landlord given from time to time. No other uses
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shall be permitted without the written consent of the Landlord, which consent may be withheld in
the sole and absolute discretion of Landlord.
13.2 Continuous Ooerations. Tenant shall continuously operate the Club on the
Premises on all business days and on Saturdays, except for national holidays and except for
periods when operation is not possible due to events or circumstances beyond the reasonable
control of Ten ant.
13.3 Manner of Use. Tenant agrees that it will use the Prernises in such a manner so as
not to interfere with or infringe upon the rights of occupants of land surrounding the Premises.
In no event shall Tenant use or permit the use of the Premises in any manner which (a) creates a
nuisance or an unreasonable annoyance to persons outside the Premises, (b) violates any law, or
(c) is determined by Landlord in its good faith discretion to be an objectionable or inappropriate
use of public property.
13.4 Compliance with Law. Tenant shall, at its sole cost and expense, promptly
comply with all laws, statutes, rules, ordinances, orders, and governmental regulations, or
requirements now in force or which may hereafter be in force relating to or affecting the
Premises (including, but not limited to, applicable changes in the building and safety codes), and
the cleanliness, safety, occupancy and use of the Premises.
ARTICLE 14
ASSIGNMENT AND SUBLETTING
14.1 Consent ReQuired. Tenant shall not assign, sublet, transfer, encumber, or
otherwise convey all or any portion of the Premises and/or this Lease, voluntarily involuntarily
or by operation of law (each, a Transfer) without the prior written consent of Landlord in
Landlord's sole and absolute discretion, except that Landlord will not unreasonably withhold its
consent with respect to (a) on assigmnent of this Lease to a lender of Tenant as security for
financing or (b) subleases to nonprofit entities. If Tenant desires to make a Transfer, Tenant
shall provide Landlord with current financial statements of the transferee, a summary of the
material terms of the Transfer and a description of the transferee's relevant business and
operating experience and Landlord shall have thirty (30) days following receipt of such
information to either consent or refuse to consent to such Transfer.
14.2 Additional Conditions. Landlord's consent shall also be conditioned upon the
following:
14.2.1 The proposed transferee shall agree in writing to perform faithfully and be
bound by all of the terms, covenants, conditions, provisions and agreements of this Lease, which
agreement shall be delivered to Landlord prior to the effective date of the transfer, and such
Transfer (and any consent theretofore given by Landlord) shall not be binding upon or approved
by Landlord unless it is timely delivered to Landlord;
14.2.2 In no event shall the consent by Landlord to a Transfer be construed as
relieving Tenant, or any transferee (for a Transfer by that transferee) from obtaining the express
written consent of Landlord to any further Transfer for which consent is required; and
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14.2.3 There shall not be an existing Event of Default of Tenant hereunder.
14.3 Violations Void: Remedies. Any Transfer which is not in compliance with the
provisions of this Article 14 shall be void and shall constitute an Event of Default under Article
15 below. No collection or acceptance of Rent by Landlord from any person other than Tenant
shall be deemed a waiver of any provision of this Article 14 or the acceptance of any transferee
hereunder, or a release of Tenant (or of any successor of Tenant or any transferee).
14.4 Transfer of Landlord's Interest. In the event of any sale or other transfer of
Landlord's entire interest in the Land to any party, Landlord shall be automatically relieved of
any and all obligations and liabilities on the part of Landlord under this Lease arising after the
date of such transfer.
ARTICLE 15
DEFAULTS AND REMEDIES
15.1 Default. Each of the following acts or omissions of Tenant, or occurrences, shall
constitute an "Event of Default":
15.1.1 Failure orrefusal to pay Rent hereunder within five (5) calendar days after
written notice from Landlord that the same is due or payable hereunder; the five (5) day period
shall be in lieu of, and not in addition to, the notice requirements of Section 1161 of the
California Code of Civil Procedure or any similar or successor law;
15.1.2 Except as set forth in Sections 15.1.5, 15.1.6 and 15.1.7 below, failure to
perform or observe any other covenant or condition of this Lease to be performed or observed
within thirty (30) days following written notice to Tenant of such failure, provided, if the nature
of the default is such that more than thirty (30) days are reasonably required to cure, then Tenant
shall not be deemed to be in default if Tenant commences such cure within the thirty (30) day
period and thereafter diligently completes such cure. Any such notice shall be in lieu of, and not
in addition to, any notice required under California Code of Civil Procedure Section 1161 or any
similar or successor Laws;
15.1.3 The subjection of any right or interest of Tenant to attachment, execution
or other levy, or to seizure under the legal process, if not released within sixty (60) days,
provided that the foreclosure of any mortgage permitted by the provisions of this Lease shall not
be construed as a default within the meaning of this Lease.
15.1.4 The filing by Tenant hereunder in any court pursuant to any statute of a
petition in bankruptcy or insolvency or for reorganization or arrangement for the appointment of
a receiver of all or a portion of Tenant's property; the filing against Tenant of any such petition,
or the commencement of a proceeding for the appointment of a trustee, receiver or liquidator for
Tenant, or of any of the property of either, or a proceeding by any governmental authority for the
dissolution or liquidation of Tenant hereunder, if such proceeding shall not be dismissed or
trusteeship discontinued within sixty (60) days after commencement of such proceeding or the
appointment of such trustee or receiver, or the making by Tenant hereunder of an assigmnent for
the benefit of creditors. Tenant hereby stipulates to the lifting of the automatic stay in effect and
relief from such stay for Landlord in the event Tenant files a petition under the United States
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Bankruptcy laws, for the purpose of Landlord pursuing its rights and remedies against Tenant of
this Lease;
15.1.5 Tenant's failure to cause to be released any mechanics' liens filed against
the Premises, with respect to work performed by or for the benefit of Ten ant, within one hundred
twenty (120) days after written notice from Landlord;
15.1.6 Tenant's failure to comply with the provisions of Articles 17 or 19 within
five (5) business days after written notice from Landlord; or
15.1.7 The occurrence of a Transfer that violates Article 14.
15.2 Remedies.
15.2.1 Upon the occurrence of an Event of Default by Tenant, Landlord may
exercise all of its remedies as may be permitted by law, including, but not limited to, the remedy
provided by Section 1951.4 of the California Civil Code, and including, without limitation,
terminating this Lease, re-entering the Premises and removing all persons and property
therefrom, which property may be stored by Landlord at a warehouse or elsewhere at the risk,
expense and for the account of Tenant. If Landlord elects to terminate this Lease, Landlord shall
be entitled to recover from Tenant the aggregate of all amounts permitted by law, including, but
not limited to (i) the worth at the time of the amount of any unpaid Rent which had been earned
at the time of such termination; plus (ii) 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 award exceeds
the amount of such rental loss that Tenant proves could have been reasonably avoided; plus (iii)
the worth at the time of award of the amount by which the unpaid Rent for the balance of the
Lease Term (as it may have been extended) after the time of award exceeds the amount of such
renta1loss that Tenant proves could have been reasonably avoided; plus (iv) any other amount
necessary to compensate Landlord for all the detriment proximately caused by Tenant's failure to
perform its obligations under this Lease or which in the ordinary course of things would be likely
to result therefrom, specifically including, but not lirnited to, brokerage commissions and
advertising expenses incurred, expenses of remodeling the Premises or any portion thereof for a
new tenant, whether for the same or a different use, and any special concessions made to obtain a
new tenant; and (v) at Landlord's election, such other amounts in addition to or in lieu of the
foregoing as may be permitted from time to time by applicable law. As used in Items (i) and (ii),
above, the "worth at the time of award" shall be computed by allowing interest at the Reference
Rate (as defined below). As used in Item (iii), above, the "worth at the time of award" shall be
computed by discounting such amount at the discount rate of the Federal Reserve Bank of San
Francisco at the time of award plus one percent (1%). "Reference Rate" shall rnean that rate
equal to two percent (2%) in excess of the reference rate of interest which Bank of America
NT&SA's main office announces from time to time, or if Bank of America NT&SA discontinues
announcing such a rate, the reference rate of interest which a comparable lending institution
announces from time to time, as selected by Landlord, in its sole and absolute discretion, but in
no event greater than the highest rate permitted by law.
15.2.2 All rights, powers and remedies of Landlord hereunder and under any
other agreement now or hereafter in force between Landlord and Tenant shall be cumulative and
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not alternative and shall be in addition to all rights, powers and remedies given to Landlord by
law, and the exercise of one or more rights or remedies shall not impair Landlord's right to
exercise any other right or remedy.
15.3 Landlord's Default.
15.3.1 Landlord Default. Landlord shall not be in default under this Lease except
for the following:
(a) Any failure by Landlord to make any payment required to be made
by Landlord hereunder when due, where such failure continues for fifteen (15) days after
delivery of written notice of such failure by Tenant to Landlord; or
(b) Any failure by Landlord to perform or comply with any other
provision of this Lease, to be performed or complied with by Landlord where such failure
continues for thirty (30) days after delivery of written notice of such failure by Tenant to
Landlord; provided, however, that if the nature of such default is such that the same cannot
reasonably be cured within such thirty (30) day period, there shall not be a Landlord Default if
Landlord shall, within thirty (30) days of such notice commence such cure, and thereafter
diligently prosecute such cure to completion.
ARTICLE 16
TENANT'S PROPERTY
All movable trade fixtures and equipment at the Premises shall remain and continue to be
the property of Tenant and may be removed, renovated, altered, added to or replaced at any time
during the term of this Lease provided that Tenant promptly repairs all damage to the Prernises
and restores the Prernises to their condition prior to the installation of Tenant's property.
ARTICLE 17
FEE MORTGAGES
17.1 Encumbrance of Reversion. Landlord, at any time and from time to time, may
finance or encumber its interest in the Premises and its rights in and to this Lease (collectively,
"Landlord's Interest").
17.2 Recol!l1ition of Lease. Tenant shall be required to subordinate Tenant's leasehold
estate in the Premises to the lien of any encumbrance against Landlord's Interest, provided such
lienholder provides Tenant with a commercially reasonable non-disturbance and attornment
agreement pursuant to which such lienholder agrees not to disturb Tenant's tenancy hereunder so
long as Tenant is not in default hereunder. Tenant hereby agrees to execute such further
reasonable documents and assurances as any future lienholder may require. In the event any Fee
Mortgagee (as defined below) forecloses on its lien against Landlord's Interest, or acquires
Landlord's Interest by agreement in lieu of foreclosure or otherwise, Tenant shall attorn to such
Fee Mortgagee, recognize such Fee Mortgagee as its landlord hereunder and execute such
documents as such Fee Mortgagee may request acknowledging such Fee Mortgagee as Tenant's
landlord hereunder. Tenant hereby waives the provisions of any current or future statute, rule or
law which may give or purport to give Tenant any right or election to terminate or otherwise
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adversely affect this Lease and the obligations of Tenant hereunder in the event of any
foreclosure or transfer in lieu of foreclosure thereunder. All Fee Mortgages shall recognize
Tenant's leasehold interest in the Premises created hereby and acknowledge and agree that this
Lease shall continue without disturbance following any foreclosure or transfer in lieu of
foreclosure pursuant to any such Fee Mortgage (as defined below). "Fee Mortgage" shall mean a
mortgage or deed of trust imposed by Landlord upon its interest. "Fee Mortgagee" shall mean
the mortgagee or beneficiary of any Fee Mortgage.
17.3 Notice to Fee Mort2a2ee. If (i) any Fee Mortgagee, (ii) other person or entity
who purchases a Fee Mortgagee's interest in the Premises and/or in this Lease at a foreclosure
sale ("Fee Purchaser") or (iii) the first Person to whom Fee Mortgagee assigns its interest in the
Prernises and in this Lease (the "Fee Assignee") (collectively, the "Fee Successor") shall have
notified Tenant of its interest in the Premises, Tenant thereafter shall give to such Fee Successor
a copy of each notice of default simultaneously with Tenant's providing such notice to Landlord
and Tenant shall not be entitled to exercise its rights upon an event of default by Landlord or
serve a notice of cancellation and termination upon Landlord unless a copy of any prior notice of
default shall have been given to the Fee Successor, as hereinabove provided, and the time
specified herein for the curing of such default shall have expired without the same having been
cured. The performance of the Fee Successor of any condition or agreement on the part of
Landlord to be performed hereunder will be deemed to have been performed with the same force
and effect as though performed by Landlord.
ARTICLE 18
INDEMNITY AND EXEMPTION OF LANDLORD FROM LIABILITY
18.1 Indemnitv. Tenant shall release, indemnify, defend and hold harmless, Landlord,
and its officers, agents, employees, successors, assigns and attorneys (collectively,
"Indemnitees"), from and against any and all claims, suits, demands, liabilities, damages, costs
and expenses (including reasonable attorneys' fees, expert witnesses' fees, exhibits and other
costs), arising from or in connection with Tenant's lease, use or possession of the Premises or the
conduct of its business or from any activity performed or permitted by Tenant in or about the
Prernises or arising from any breach or default in the performance of any obligation on Tenant's
part to be performed under the terms of this Lease, or arising from any other act, neglect, fault or
omission of Tenant or any of its officers, agents, directors, contractors, employees, licensees,
invitees, patrons or customers. As a material part of the consideration to the Landlord for
entering into this Lease, Tenant hereby assumes all risk of damage to property or injury to
persons in, upon or about the Premises, except that which is caused by the gross negligence or
willful misconduct of Landlord or any of Landlord's officers, employees, agents or contractors,
provided such willful rnisconduct or gross negligence is determined by agreement between the
parties or by the findings of a court of competent jurisdiction. In instances where an Indemnitee
is shown to have engaged in willful rnisconduct or been grossly negligent and where the
Indemnitees' willful misconduct or gross negligence accounts for only a percentage of the
liability involved, the obligation of Tenant will be for that entire portion or percentage of liability
not attributable to the willful misconduct or gross negligence of the Indemnitee(s).
18.2 Exemption of Landlord From Liabilitv. Except for Landlord's willful or grossly
negligent conduct or that of any of Landlord's officers, employees, agents or contractors
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(provided such willful misconduct or gross negligence is determined by agreement between the
parties or by the findings of a court of competent jurisdiction), Landlord shall not be liable for
injury to Tenant's bnsiness or loss of income therefrom, or for damage that may be sustained by
the person, goods, wares, merchandise or property of Tenant, its employees, invitees, customers,
agents, or any other person in, on or about the Premises.
18.3 Survival. The provisions of this Article 18 shall survive the expiration or earlier
termination of this Lease with respect to any claims or liability occurring prior to such expiration
or termination.
ARTICLE 19
ESTOPPEL CERTIFICATES
Tenant shall, at any time and from time to time, upon not less than ten (10) business
days' prior written notice from Landlord, execute, acknowledge and deliver to Landlord a
statement in writing certifYing the following information (but not limited to the following
information in the event further information is reasonably requested by Landlord): (a) that this
Lease is umnodified and in full force and effect (or, if modified, stating the nature of such
modification and certifying that this Lease, as modified, is in full force and effect); (b) the date to
which Rent and other charges are paid in advance, if any; (c) the amount of Tenant's security
deposit, if any; and (d) acknowledging that there are not, to Tenant's knowledge, any uncured
defaults on the part of Landlord hereunder, and no events or conditions then in existence which,
with the passage of time or notice or both, would constitute a default on the part of Landlord
hereunder, or specifying such defaults, events or conditions, if any are claimed. It is expressly
understood and agreed that any such statement may be relied upon by any prospective purchaser
or encumbrancer of all or any portion of the Premises.
ARTICLE 20
HAZARDOUS MATERIALS
20.1 No Hazardous Materials. Tenant shall not permit the use, storage or
transportation of Hazardous Materials on or about the Prernises except as reasonably necessary
for the uses of the Premises permitted under this Lease, and then only in accordance with
applicable laws.
20.2 Notice. Tenant shall notify Landlord in writing of any releases of Hazardous
Materials on the Premises, except as permitted in Section 20.1 above, any claims made with
respect to Hazardous Materials on the Premises, and any Notices of Violation or similar notices
with respect to Hazardous Materials on the Premises, in each case promptly after receiving
notice or obtaining knowledge of the same.
20.3 Indemnitv. Tenant shall indemnify, defend and hold Landlord hannless from and
against any and all claims, judgments, damages, penalties, fines, costs, liabilities, or losses
(including, without limitation, diminution in value of the Premises, damages for the loss or
restriction or use of the Premises, and sums paid in settlement of claims, attorney's fees,
consultant fees, and expert fees) which arise as a result of the use, storage or transportation of
Hazardous Materials by Tenant during or after the date of this Lease. This indemnification of
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Landlord by Tenant includes, without limitation, costs incurred in connection with any
reasonable investigation of site conditions or any cleanup, remedial, removal, or restoration work
required by any federal, state, or local governmental agency or political subdivision because of
Hazardous Materials present in the soil or ground water on or under the Premises as a result of
the use, storage or transportation of Hazardous Materials by Tenant during or after the date of
this Lease. Without limiting the foregoing, if the presence of any Hazardous Material on the
Premises caused or permitted by Tenant results in any contamination of the Premises, Tenant
shall promptly take all actions at its sole expense as are necessary to return the Premises to the
condition existing prior to the introduction of any such Hazardous Material, and the contractors
to be used by Tenant for such work must be approved by Landlord, which approval shall not be
unreasonably withheld.
20.4 No Release. Neither Section 20.3, nor any other provision of this Lease, shall
release Tenant from any liability that may arise as a result of the presence of Hazardous
Materials in, on, or under the Premises, including but not limited to Hazardous Materials present
in the soil or ground water, whether before or after the date of this Lease.
20.5 Hazardous Material Defmed. As used herein, the term "Hazardous Material"
means any hazardous or toxic substance, material, or waste that is or becomes regulated by any
local governmental authority, the State of California or the United States Government. Tbe term
"Hazardous Material" includes, without limitation, any material or substance which is (i) defined
as "Hazardous Waste," "Extremely Hazardous Waste," or "Restricted Hazardous Waste" under
Sections 25115, 25117 or 25122.7, or listed pursuant to Section 25140 of the California Health
and Safety Code, Division 20, Chapter 6.5 (Hazardous Waste Control Law); (ii) defined as a
"Hazardous Substance" under Section 25316 of the California Health and Safety Code, Division
20, Chapter 6.8 (Carpenter-Presley-Tanner Hazardous Substance Account Act); (iii) defined as a
"Hazardous Material," "Hazardous Substance," or "Hazardous Waste" under Section 25501 of
the California Health and Safety Code, Division 20, Chapter 6.95 (Hazardous Materials Release
Response Plans and Inventory); (iv) defined as a "Hazardous Substance" under Section 25281 of
the California Health and Safety Code, Division 20, Chapter 6.7 (Underground Storage of
Hazardous Substances); (v) petroleum; (vi) asbestos; (vii) defined as "Hazardous" or "Extremely
Hazardous" pursuant to Article II of Title 22 of the California Administrative Code, Division 4,
Chapter 20; (viii) designated as a "Hazardous Substance" pursuant to Section 311 of the Federal
Water Pollution Control Act (33 U.S.C. Section 1317); (ix) defined as a "Hazardous Waste"
pursuant to Section 1004 of the Federal Resource Conservation and Recovery Act, 42 U.S.C.
Section 6901, et seq. (42 U.S.C. Section 6903); or (x) defined as a "Hazardous Substance"
pursuant to Section 101 of the Comprehensive Enviromnental Response, Compensation and
Liability Act, 42 U.S.C. Section 9601, et seq. (42 U.S.C. Section 9601).
20.6 Laws. As used herein, the term "laws" means any applicable federal, state or
local law, ordinance, or regulation relating to any Hazardous Material.
ARTICLE 21
SURRENDER
At the expiration or earlier termination of this Lease, Tenant shall, at its sole cost and
expense, deliver the Premises to Landlord in similar or better condition and repair as Tenant
lI086-0007\744472v2.doc
17
7/29/03
received the Premises, broom clean and with all of Tenant's property removed. Tenant may
elect within thirty (30) days before expiration of the term, or upon notice of termination of this
Lease, to remove any fixtures that Tenant has placed on the Premises. If Tenant so elects,
Tenant at its sole cost, shall restore the Premises to similar or better condition and repair as
Tenant received the Premises, or such other condition as is mutually agreeable to Landlord and
Tenant before the last day of the term or by such other date as agreed to by Landlord and Tenant.
ARTICLE 22
GENERAL PROVISIONS
22.1 Non-Waiver. No waiver by either party of any provision of this Lease shall be
deemed to be a waiver of any other provision hereof or of any subsequent breach by such party
of the same or any other provision. No provision of this Lease may be waived by either party,
except by an instrument in writing executed by such party. Either party's consent to or approval
of any act requiring such party's consent or approval shall not be deemed to render unnecessary
the obtaining of such party's consent to or approval of any subsequent act, whether or not similar
to the act so consented to or approved. The subsequent acceptance of Rent hereunder by
Landlord or the acceptance of payment from Landlord by Tenant, shall not be deemed to be a
waiver of any preceding breach by the party from whom payment was received of any provision
of this Lease, other than the payment so accepted, regardless of the accepting party's knowledge
of such preceding breach at the time of acceptance. No act or thing done by Landlord or
Landlord's agents shall be deemed an acceptance of a surrender of the Prernises, and no
agreement to accept such surrender shall be valid unless in writing and signed by Landlord.
22.2 Attornevs' Fees: Waiver of Jury Trial. In any action to enforce the terms of this
Lease, including any suit by Landlord for the recovery of Rent or possession of the Premises, the
losing party shall pay the successful party all attorneys' fees and costs in such suit and upon
appeal, and all such attorneys' fees shall be deemed to have accrued prior to the commencement
of such action and shall be paid whether or not such action is prosecuted to judgment.
22.3 Broker's Commissions. Landlord and Tenant hereby warrant to each other that
they have had no dealings with any real estate broker or agent in connection with this Lease.
Each party hereto shall indemnify and hold the other harmless on account of any loss, claim,
liability or expense, of whatever kind and whatever nature, including attorneys' fees and costs,
arising out of a claim by any other real estate broker or agent for a brokerage commission
pertaining to the Lease and based on any act or statement made by the indemnifying party.
22.4 Severability: Entire A2feement: Amendments. Any provision of this Lease which
shall prove to be invalid, void, or illegal shall in no way affect, impair or invalidate any other
provision hereof, and any such other provisions shall remain in full force and effect. This Lease
and the exhibits attached hereto constitute the entire agreement between the parties hereto with
respect to the subject matter hereof, and no prior agreement or understanding pertaining to any
such matter shall be effective for any purpose. No provision of this Lease may be amended or
supplemented except by an agreement in writing signed by the parties hereto or their successor-
in-interest.
11086-0007\744472v2.doc
18
7/29/03
22.5 Notices. All notices, approvals, demands, reports, requests and other
communications provided for in this Lease shall be in writing (including telex, telecopy,
telegram or similar writing) and shall be given to such party at its address set forth below, and
with copies given as shown below (or such other address as such party may hereafter specify for
the purpose by notice to the other party listed below). Each such notice, approval, demand,
report or other communication shall be deemed delivered to the party to whom it is addressed
(A) if personally served or delivered, upon delivery, (B) if given electronic communication,
whether by telex, telegram or telecopier, upon the sender's receipt of an appropriate answer back
or other written acknowledgment or confirmation of receipt of the entire notice, approval,
demand, report or other communication, (C) if given by certified or registered mail, return
receipt requested, deposited with the United States Mail with first-class postage prepaid, seventy-
two (72) hours after such notice is deposited with the United States Mail, or (D) if given by
reputable overnight courier with courier charges prepaid twenty-four (24) hours after delivery to
the overnight courier.
To Landlord:
City ofTemecula
43200 Business Park Drive
Temecula, California 92589-9033
Attn: City Manager
With a copy to:
Richards, Watson & Gershon
355 South Grand Avenue, 40th Floor
Los Angeles, California 90071
Attn: Bruce Galloway, Esq.
To Tenant:
Boys and Girls Club of Southwest County
28790 Pujol Street
Temecula, California 92590
Attn: Executive Director
22.6 Further Assurances. Tenant and Landlord each hereby agrees to take such further
actions and to execute such other and further documents as may be required to carry out the
purposes of this Lease.
22.7 Governing Law. This Lease shall be governed by and construed in accordance
with the laws of the State of California, regardless of the conflicts of law provisions thereof. All
controversies, claims, actions or causes of action arising between the parties hereto and/or their
respective successors and assigns shall be brought, heard and adjudicated by the courts of the
State of California, with venue in the County of Los Angeles.
II086-0007\744472v2.doc
19
7/29/03
22.8 Successors and Assilms. Subject to the provisions of Article 14 hereof, all of the
covenants, conditions and provisions of this Lease shall be binding upon and shall inure to the
benefit of the parties hereto and their respective heirs, personal representatives, successors and
assigns.
22.9 Time of Essence. Time is ofthe essence with respect to the performance of every
provision of this Lease.
22.10 Headin2s: Joint and Several. The article headings contained in this Lease are for
convenience only and do not in any way limit or amplify any term or provision hereof. The
terms "Landlord" and "Tenant" as used herein shall include the plural as well as the singular, the
neuter shall include the masculine and feminine genders.
22.11 No Option. The subrnission of this Lease by Landlord, its agent or representative
for examination or execution by Tenant does not constitute an option or offer to Lease the Land
upon the terms and conditions contained herein or a reservation of the Premises in favor of
Tenant, it being intended hereby that this Lease shall only become effective upon the execution
hereof by Landlord and delivery of a fully executed lease to Tenant. No act or omission of any
agent of Landlord shall alter, change or modify the provisions of this Section.
22.12 Rililit of Landlord to Perform. All covenants and agreements to be performed by
Tenant under any of the terms of this Lease shall be performed by Tenant at Tenant's sole cost
and expense and without any abatement of Rent. If Tenant shall 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 its
part to be performed hereunder, and such failure shall continue beyond any applicable cure
period set forth in this Lease, Landlord may, but shall not be obligated to, without waiving or
releasing Tenant from any obligations of Tenant, make any such payment or perform any such
other act on Tenant's part to be made or performed as is in this Lease provided. All sums so paid
by Landlord and all reasonable incidental costs, together with interest thereon at the Interest Rate
from the date of such payment by Landlord, shall be payable to Landlord on demand, and Tenant
covenants to pay any such sums, and Landlord shall have (in addition to any other right or
remedy of Landlord) the same rights and remedies in the event of the non-payment thereof by
Tenant as in the case of default by Tenant in the payment of rent.
22.13 Survival of Obligations. Any obligations of Landlord or Tenant occurring prior to
the expiration or earlier termination of this Lease shall survive such expiration or earlier
termination.
22.14 Relationship of Parties. Nothing contained in this Lease shall be deemed or
construed by the parties hereto or by any third party to create any relationship of principal and
agent, partnership, association, joint venture or otherwise between Landlord and Tenant. The
sole relationship of the parties hereto shall be that of Landlord and Tenant.
22.15 Exhibits and Addenda. The Exhibits attached hereto are incorporated herein by
this reference as if fully set forth herein.
22.16 Execution in Countemarts. This Lease may be executed simultaneously in one or
more counterparts, each of which shall be deemed an original, but all of which together shall
11086-0007\744472v2.doc
20
7/29/03
constitute one and the same instrument. For purposes of this Lease, facsimile signatures shall be
deemed to be original signatures, and shall be followed by the immediate overnight delivery of
original signature pages.
IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the day and
year first above written.
CITY OF TEMECULA,
a municipal corporation
By:
Name:
Title:
ATTEST:
By:
City Clerk
BOYS AND GIRLS
SOUTHWEST COUNTY,
nonprofit corporation
CLUB OF
a California
By:
Name:
Title:
APPROVED AS TO FORM:
By:
Name:
Title:
By:
lI086-0007\744472v2.doc
21
7/29/03
EXHIBIT "A"
Le2al DescriDtion of Land
(Attached. )
11086-0007\744472v2.doc
7/29/03
~~
~~
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~~;~:F
~ =- HEIliG DESCRBED
~ MA .. 10,l125.1!P, SQUARE FEET
OR .2.... AcREs. .1tfORE OR LESS
(E) ~~N .WD RECORDED IMRcH 22, 1994
~~\JItIEtiT ~O. 1994-118891
~
~
" u T,~. 2~67-2
..8. ZIT 163-69
I=,I:~
PARK S1lE
APt-( 961-020-005
P.D.B.
.#.'~
~/.
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PARCEl. 184
Il T.M. 23,?67-2
..B. 237/63-69
R .. 1200.00'
201
VICINITY MAP
"""'sc.\LE
u !J./. 23@3-2
IlI.D. 220/30-39
160
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..B. 220/40-50
CITY OF TEMECULA
DEPAR'rl,IfJ(r OF PUBliC WORKS
EXHIBIT "B"
aTY OF ~'fCULA
& 8~'U. fSS PARK OR.
'fCU :4 92590
9, '.J 6. 64ft
SCALE:
t"=2oo'
EXHIBIT FOR:
GROUND LEASE EASEMENT
KS'{T HINTERGAROT PARK
3t486 f1A CORDOBA
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EXHIBIT "B"
LEGAL DESCRIPTION
GROUND LEASE EASEMENT
KENT HINTERGARDT PARK
THAT PORTION OF PARCEL 184 OF TRACT MAP 23267-2, AS SHOWN ON A
TRACT MAP ON FILE IN BOOK 237 AT PAGES 63 THROUGH 69, INCLUSIVELY
OF TRACT MAPS IN THE OFFICE OF THE COUNTY RECORDER OF RIVERSIDE
COUNTY, STATE OF CALIFORNIA, BEING MORE P ARTICULARL Y DESCRIBED
AS FOLLOWS:
BEGINNING AT THE CENTERLINE INTERSECTION OF VIA DEL CORONADO
AND VIA CORDOBA AS SHOWN ON SAID MAP, SAID POINT BEING MARKED
BY A I-INCH IRON PIPE TAGGED R.C.E. 14594 PER SAID MAP; SAID POINT
ALSO BEING ON THE ARC OF A 1200.00 FOOT RADIUS CURVE CONCAVE
NORTHEASTERLY, A RADIAL LINE TO SAID POINT BEARS NORTH 33
DEGREES 00' 00" EAST;
THENCE SOUTHEASTERLY ALONG THE ARC OF SAID CURVE THROUGH A
CENTRAL ANGLE OF 14 DEGREES 27' 55", A DISTANCE OF 302.95 FEET;
THENCE LEAVING SAID NORTHEASTERLY LINE, RADIALLY NORTH 18
DEGREES 10' 31" EAST, 41.10 FEET TO THE TRUE POINT OF BEGINNING;
THENCE SOUTH 71 DEGREES 49' 29" EAST 85.00 FEET;
THENCE NORTH 18 DEGREES 10' 31" EAST 125.00 FEET;
THENCE NORTH 71 DEGREES 49' 29" WEST 85.00 FEET;
THENCE SOUTH 18 DEGREES 10'31" WEST 125.00 FEET TO THE TRUE POINT
OF BEGINNING;
CONTAINING 10,625.00 SQUARE FEET OR .244 ACRES MORE OR LESS.
THE DESCRIPTION ALSO BEING SHOWN ON THE ATTACHED "EXHIBIT B"
AND THEREBY BEING MADE APART HEREOF.
PREPARED UNDER MY SUPERVISION:
RONALD J. PARKS
DEPUTY DIRECTOR OF PUBLIC WORKS
REGISTERED CIVIL ENGINEER NO. 19744
EXPIRES 9-30-05
R:\CIP\PROJECTS\FW94\PW94-01 Kent Hintergardt\LBGAL_ GROUND LEASB BASEMENT.doc
ITEM NO.2
R\CSCAGEND\lTEMNO.SHL
CITY OF TEMECULA
AGENDA REPORT
TO:
FROM:
Community Services Commission
Herman Parker, Director of Community servi~
October 13, 2003
DATE:
SUBJECT:
Harveston Public Art Program
PREPARED BY:
Cathy McCarthy, Development Services Administrator u/
RECOMMENDATION:
Public Art Program.
That the Community Services Commission approve the Harveston
BACKGROUND: The Harveston Specific Plan was approved by the City Council in
August of 2001. As part of the Development Agreement, the City Council established a fee for
publiC art. The Council has encouraged developers to provide publiC art within their community to
enhance the quality of life for Temecula's residents. This philosophy is also reflected in the goals of
the City's Cultural Arts Master Plan.
The Harveston Public Art Program proposed by Lennar Communities is a comprehensive approach
to the placement of a variety of art and artistic landscape features at prominent locations within the
Harveston Development. This Program not only meets, but exceeds, the requirement established in
the Development Agreement. Lennar's obligation for the public art fee totals $96,050. Lennar has
agreed to contribute an additional $25,000 in order to provide the public art outlined in this Program.
The Public Art Program includes a total of eleven different art displays, some of which are on City
property and will be owned and maintained by the City and other pieces are in Homeowner
Association areas, and will be owned and maintained by the Harveston HOA. Attached is a booklet
that provides the details of the Program. It contains an overall site plan, elevations and images to
illustrate the design concept.
R:\McCarthC\Commission Reports\Harveston Public Art Program.doc
Harveston- Public Art
Concept Booklet
l~l.
Introduction 2
Vicinity Map 3
Community Art Exhibit 4
Village Road Enlargement 5
History Panels 6-7
Family Sculpture at Roundabout 8-9
Lake Park Enlargement 10
Musician Sculpture at Amphitheater 11 - 12
Window Hedge 13
Wind Chimes 14
Fisherman Sculpture 15
Sundial 16
Paseo and Comm. Park Enlargement 17
Animal Topiary 18
Kite Sculpture 19
Kids-Play Sculpture 20
Baseball Collonade 21
.~
Table of Contents
Harveston - Public Art 1
Harveston Public Art
Introduction
The Harveston Public Art Program (Program) is a comprehensive approach to the placement
of a variety of art and artistic landscape features at prominent locations within the Harveston
Community. Lennar Communities is committed to enhancing the cultural enrichment of the
Harveston development through artistic expression in various mediums. This Program not only
meets, but exceeds, their requirement established in the DevelopmentAgreement. The Program
was developed with input from City Staff, Lennar Communities, a landscape architecture firm
and a local artist. This Presentation Booklet (Booklet) contains the core components of the
Program.
According to the provisions of the Development Agreement, Lennar Communities agreed to pay
a fee of Fifty Dollars ($50.00) per dwelling unit for public art. With 1,921 dwelling units approved
in the Harveston Specific Plan, the total fee available for Public Art will be $96,050. In addition,
Lennar Communities will contribute an additional $25,000 in order to achieve the desired
Program within the Community.
The information contained within this Booklet provides the details of the Program. The Program
components are located within both the City owned and the Homeowner's Association areas.
The following pages describe the location, types, and quantity of the Program components. It
should be noted that the illustrations, diagrams and images contained on the following pages are
intended to depict the approximate location, scale and materials of the Program, based on the
information known at this time. Flexibility will be allowed in the final design, as the availability of
materials and the specific location may be subject to some modification.
The Booklet is formatted to guide the reader through the placement of the Program components
and contains an overall site plan, elevations and images to illustrate the design concept. In
addition, the maintenance responsibilities for each of the areas are clearly defined.
.~
Harveston - Public Art 2
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Harveston - Public Art 6
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Harveston - Public Art 8
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Harveston - Public Art 9
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8) Window Hedge Images
-City maintained
- Window set in green wall
- Views to sundial across lake
- Steel frame wall and window metallized and painted
Harveston - Art in the Landscape 13
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-City Maintained
- Announce gathering place
- Wrought iron - metallized and painted
Harveston - Public Art 14
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@ Fisherman Sculpture
-City Maintained
6' Steel sculpture, metallized and painted on brick base
Harveston -Public Art 15
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CD Sundial at Lake Edge
-City Maintained
. 10' Steel, metallized and painted
. Colored concrete base with inset numbering
Harveston - Public Art 16
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-HOA Maintained
- Topiaries (3 total), planted on steel frames
Harveston - Public An 18
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o Kite Sculpture
-HOA Maintained
- 6' 2-D Steel sculpture, metallized and painted
Harveston - Public Art 19
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-HOA Maintained
-6' Steel sculpture, metallized and painted
Harveston - Public Art 20
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-City Maintained
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Harveston - Public Art 21