CC Resolution No. 14-120 Approving the purchase from George and Yoshiko Blesch at 22050 Stevens Creek Blvd.RESOLUTION NO. 14 -120
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
APPROVING THE PURCHASE AND LEASE AFTER SALE OF REAL PROPERTY
FROM GEORGE AND YOSHIKO BLESCH AT 22050 STEVENS CREEK BOULEVARD
(APN 357=10 -002) AND AUTHORIZING THE CITY MANAGER TO EXECUTE ALL
NECESSARY DOCUMENTS TO COMPLETE THE ACQUISITION AND LEASE
WHEREAS, the City Council, in a closed session meeting on November 4t", 2014, had
directed staff to negotiate the purchase of the real property located at 22050 Stevens Creek
Boulevard (Property) from George and Yoshiko Blesch; and
WHEREAS, in February of 2014, staff completed negotiations and the property
owners have signed a purchase agreement which includes a lease agreement for the
Property after the sale, the terms of which are part of the Agreement for Purchase of Real
Property by and Between the City of Cupertino and George and Yoshiko Blesch
( "Agreement "), subject to the approval of the City Council; and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Cupertino hereby approves the purchase and :lease after sale of the property located at
22050 Stevens Creek Boulevard, from George and Yoshiko Blesch in the purchase amount
of $1,575,000.00, and upon other terms as set forth in the Agreement, including the Lease as
detailed in the Agreement, Exhibit "D "; and further authorizes the City Manager to execute
all of the necessary documents to complete the .acquisition and lease of the Property.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Cupertino on the 18th day of February 2014, by the following vote:
Vote Members of the City Council
AYES:
Wong, Sinks, Chang, Mahoney, Santoro
NOES:
None
ABSENT:
None
ABSTAIN:
None
ATTEST:
�� -s- L)#
Grace Schmidt, City Clerk �2 —LL( _iv
APPROVED:
Gilbert Wong, Mayor, City of Cuper
EXHIE'JT D
AGREEMENT BETWEEN
THE CITY OF COUPERTINO
AND
GEORGE AND YOSHIKO BLESCH
FOR THE USE OF CITY PROPERTY
THIS AGREEMENT is made and entered into this kb. , 2014, by and
between the CITY OF CUPERTINO, a municipal corporation of the State of California
( "CITY "), and GEORGE AND YOSHIKO BLE )CH ( "TENANT ").
RECITALS
WHEREAS, CITY has purchased the real property, located at 22050 Stevens
Creek Boulevard, Cupertino (Property) and as more specifically defined under the
Agreement for Purchase of Real Property By and Between City of Cupertino and
George and Yoshiko Blesch (Purchase Agreement) dated j ". ),!�, 2014; and
WHEREAS, CITY desires to continue to have the Property occupied and
TENANT desires to remain on the property after close of escrow;
NOW, THEREFORE, the parties hereto do hereby agree as follows:
1. TERM OF AGREEMENT.
This agreement shall be for a term commencing on the close of escrow of the
Purchase Agreement ( "Effective Date ") and expiring on October 1, 2014; unless sooner
terminated pursuant to the provisions continued herein. The parties agree to perform
their respective obligations under this agreement as of the effective date. Should the
CITY accept rent (other than past -due amounts) beyond the term of this Agreement, a
month -to -month tenancy will be created by which either party may terminate the
Agreement pursuant to California Civil Code section 1946.1.
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1/31/2014
EXHIBIT D
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The rights and privileges granted by CITY to TENANT under this AGREEMENT
are in consideration of a monthly fee of two thousand dollars ($2,000.00) payable no
later than the 5th day of the month the rent is due. If rent is not paid on the 5th day of
the month, the CITY will be permitted to assess a late fee and interest on the unpaid
balance. There will be no rent increases through the Term of this Agreement.
However, if this Agreement is renewed on a month -to -month basis, the CITY may
increase the rent by providing written notice to the Tenant that become effective the
month following the 30th day after the notice is provided.
a. CITY hereby grants TENANT revocable permission for the
continued occupation of the Property to be utilized as their primary
residence.
b. The parties agree that TENANT shall be solely responsible for
maintaining the property in the same condition as of the effective
date, less normal wear and tear.
4. TENANT'S USE OF PREMISES.
a. TENANT shall obtain and maintain for the duration of this Lease
and any extension periods a renter's insurance policy that provides
a minimum of $500,000 in comprehensive liability coverage.
TENANT shall provide proof of such policy to the CITY upon
execution of this lease and updates as requested by CITY.
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EXHIBIT D
b. TENANT agrees that it will not suffer or allow the Premises or any
portion thereof to be usE!d for any purposes other than those
specified in this agreement.
C. TENANT agrees that it shall make no alteration of or change in any
manner the Property without prior written notice to the CITY, and
costs thereof shall be borne solely by TENANT.
d. TENANT agrees that it may not assign, sublease, or otherwise
transfer any of its rights under this AGREEMENT.
5. WASTE AND NUISANCE PROHIBITED.
TENANT shall not commit or allow to be committed, any waste upon the
Property, whether voluntary or permissive, and it shall not create or permit any private
or public nuisance to exist on the Premises. TENANT shall eliminate any and all
dangerous conditions that exist upon or are created upon the Property whenever
TENANT may discover such conditions.
6. UTILITIES.
TENANT, without cost or expense to the CITY, shall provide all monthly water
utility service and shall pay for garbage collection gas, electric and telephone utility
services during the term hereof.
7. MAINTENANCE OF EXTERIOR GROUNDS.
TENANT agrees to maintain in good, clean and sightly condition, at its own cost
and expense, the exterior grounds surrounding the building during the term hereof.
8. INDEMNIFICATION AND HOLD HARMLESS.
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EXHIBIT D
1/31/2014
TENANT shall protect, defend, indemnify and hold- harmless CITY, its officers
and employees, against any loss or liability arising out of or resulting in any way from
use or occupation of the Property under this agreement due to the willful or negligent
acts (active or passive) or omissions by TENANT.
9. TAXES AND OTHER PUBLIC CHARGES.
TENANT recognizes and understands that this agreement may create a
possessory interest, which may be subject to a possessory interest tax, and that any
such tax shall be the liability of and be paid by TENANT.
10. DEFAULT AND TERMINATION
a. This AGREEMENT may be terminated by either party hereto at any
time during the term specified herein, upon giving to the other party
not less than sixty (60) days written notice of said termination.
TENANT's failure to pay rent when due shall be a default under this
Agreement. CITY, at CITY's option, may exercise all legal rights
and remedies available in the event of a default, including, but not
limited to, declaring the entire balance of rent to be immediately
due and payable and immediately terminate this Agreement. .
11. NOTICES.
All notices required or permitted to be given under this agreement shall be in
writing and personally delivered or sent by ceitified mail, postage prepaid and return
receipt requested addressed as follows:
CITY: City of Cupertino
10300 Torre Ave
Cupertino, CA 95014
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EXHIBIT D
1/31/2014
TENANT: George and Yoshiko Blesch
22050 Stevens Creek Blvd.
Cupertino, CA 95014
The parties may change their respective addresses for purposes of delivering notices
by sending notice of such change pursuant to this paragraph.
12. RIGHT OF ENTRY
a. TENANT shall make the Property available to the CITY or the
CITY's representatives for the purposes of making necessary or
agreed upon repairs, decorations, alterations or improvements, or
supply necessary or agrE!ed upon services, or to show the Property
to perspective or actual lenders, appraisers, or contractors.
b. TENTANT agrees that 24 -hour written notice is reasonable and
sufficient notice, unless in case of emergency, CITY or CITY's
representatives may enter without notice. In addition, CITY or
CITY's representatives shall provide 48 -hours notice to conduct an
inspection prior to TENANT moving out.
13. TENANT'S OBLIGATIONS UPON VACATING THE PREMISES:
1/31/2014
a. Upon termination of this Agreement, TENANT shall provide all
copies of the keys or opening devises to the Property; vacate the
Property and surrender it to the CITY, free from any personal
property or debris.
b. After giving or receiving notice of the end of the tenancy, TENANT
has the right to request an inspection take place. TENANT shall be
given the right to correct or remedy any deficiency in the Property.
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EXHIBIT D
WITNESS THE EXECUTION HEREOF, the clay and year first hereinabove written.
APPROVED AS TO FORM:
By:
City Attorney
IM
1/31/2014
CITY
CITY OF CUPERTINO, a municipal
corporation of the State of California
By:
City Manager
Dated: 1 — -1Y
'TENANT
GEORGE AND YOSHIKO BLESC'H
By:
13y:
EXHIBIT D