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LEASE/RENTAL AGREEMENT TWEEN
THE CITY OF CARMEL BY THE SEA
AND
NATIONAL PARKING AND VALET
This Lease/Rental Agreement, executed at Carmel-by-the-Sea, California this
3rd day
o
November , 2014 by and between the City
o
Carmel-by-the-Sea
(hereinafter referred to as LESSOR/RENTOR) and NATIONAL PARKING AND VALET, a
division o Pacific Parking
&
Valet, LLC (hereinafter referred to as LESSEE/RENTEE ),
supersedes all previous agreements between the parties with respect to Premises described
herein.
IT IS AGREED between the parties hereto as follows :
1. Description of Premises.
1.1
LESSOR/RENTOR hereby leases to LESSEE/RENTEE, and LESSEE/RENTEE
hires from LESSOR/RENTOR, under the terms and conditions hereinafter set forth, those certain
improvements located
on
those certain parcels of land situated in the City
o
Carmel-by-the-Sea
and commonly described as the parking lot located on the north lot of Sunset Center, the tour
bus parking lot located at the corner
o
Ocean Avenue and Junipero Street, and Ocean Avenue
between Junipero Street and Monte Verde Street Carmel-by-the-Sea , Monterey County,
California (hereafter Premises).
2. Term.
2.1 The term of this Lease/Rental Agreement shall be for twelve (12) months,
commencing on 1 November, 2014 and ending on 1 October, 2015.
2.2 The LESSOR/RENTOR may terminate this contract by giving at least thirty (30) days
written notice to LESSEE/RENTEE if LESSOR/RENTOR determines , in LESSOR/RENTOR's
sole discretion, that the premises are to be incorporated into a city-wide Parking Plan which will
either subject the Premises to significant construction/modification , or change the Premises use
classification in any way that precludes
it
from being used in a manner that is consistent with this
Agreement (e.g., free parking lot).
3. Compensation.
3.1 LESSEE/RENTEE shall pay to LESSOR/RENTOR seventy-five percent (75%) of
the Gross Revenue as defined hereinbelow. In addition LESSEE/RENTEE shall pay to
LESSOR/RENTOR the sum of 1 ,000
as
set forth
in
4.6 o this Agreement.
Gross Revenue
as
referred to above is defined to include, but not be limited to , total receipts
from parking collections prior to the payment
o
local taxes including any possessory use tax,
permit and licensing fees, and utilities. Gross Receipts shall exclude federal and state income
tax, and parking machine parts and maintenance.
3.2 LESSEE/RENTEE acknowledges that the late payment by LESSEE/RENTEE of
any rentals due hereunder will cause LESSOR/RENTOR to incur certain cost and expenses not
contemplated under this Lease, the exact amount of which will be extremely difficult or
impractical to ascertain. Such costs and expenses include, without limitation, administrative and
collection costs and processing and accounting expenses . Accordingly if any rental payment
hereunder is not received by LESSOR/RENTOR from LESSEE/RENTEE within ten (1 0) days
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from the date it becomes due, LESSEE/RENTEE shall immediately pay to LESSOR/RENTOR,
without prior notice or demand, a late charge of f ive percent (5%) of the then-gross monthly
rental. LESSOR/RENTOR and LESSEE/RENTEE agree that this late charge represents a
reasonable estimate
of
such costs and expenses and is fair compensation to LESSOR/RENTOR
for its losses sustained by reason
of
LESSEE's /RENTEE's failure to make timely paymen
t.
In
no event shall th is provision for the payment of a late charge be deemed to grant to
LESSEE/RENTEE a grace period or extension
of
time within which to pay any rental due
hereunder or prevent LESSOR/RENTOR from exercising any right or remedy available to
LESSOR/RENTOR upon LESSEE's/RENTEE's failure to pay such rental when due, including
the right to terminate this Lease .
3.3 If any rental remains delinquent for a period in excess of thirty (30) days, then, in
addition to the late charge provided hereinabove, LESSEE/RENTEE shall pay to
LESSOR/RENTOR interest on any rental that is not paid when due at the lesser
of
eighteen
percent (18%) per annum or the maximum interest rate permitted by law (the Default Rate),
from the thirtieth (30th) day following the date such amount became due , until paid.
4. Use.
4.1 The Premises shall
be
used only for the commerci
al
parking
of
motor vehicles,
and for purposes incidental thereto. Premises shall be operated between the hours (8: a.m. to
7:00 p.m.), or as negotiated with LESSOR/RENTOR. At all other times LESSOR/RENTOR has
exclusive use of the Premises.
4.2 LESSEE/RENTEE may operate and make available special event parking,
overnight parking, tour bus and/or hostelry valet guest programs from time to time during the
term of this Lease and any extension or renewal thereof . LESSEE/RENTEE shall notify the
Carmel-by-the-Sea in advance of any said usages. All revenues generated from such overnight
pa rking programs shall be included in the monthly gross revenue referred to in Section 3.1
hereof.
4.3 LESSEE/RENTEE shall not use
or
permit the Premises or any part thereof to be
used for any pu rpose or purposes other than those for which the Premises are hereby leased .
4.4 From time to time, LESSEE/RENTEE may exercise the right to use Premises for
after-hours special events/hospitality purposes for its customers, conditioned upon such use not
conflicting with any
of
the terms of this Lease/Rental Agreement.
4.5 In the event of an act of God or a major emergency/disaster which renders
Premises not useable by LESSEE/RENTEE, or requires LESSOR/RENTOR to use Premises for
its emergency purposes, all of LESSEE 's/RENTEE's obligations hereunder shall cease during
LESSOR's/RENTOR's emergency use and the term
of
this Lease will
be
extended for the same
period of time LESSEE/RENTEE is unable to use Premises.
4.6 LESSEE/RENTEE shall
be
permitted to operate the back half
of
the Sunset
Center North Parking Lot from Thursday through Sunday of the AT&T National Pro AM Golf
Tournament for a private client. LESSEE/RENTEE will pay LESSOR/RENTOR 1 ,000 for usage
of lot during this time. The front half of the lot will remain open for the general public.
5. Taxes.
5.1 LESSORIRENTOR shall pay all real estate and/or personal property taxes on the
Premises. LESSEE/RENTEE shall pay for perm its, fees and a City of Carmel-by-the-Sea
business license.
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5.2 LESSEE/RENTEE shall pay the Monterey County Possessory Use Tax as
assessed by the County
o
Monterey.
6 Repairs and Maintenance, Utilities.
6.1 LESSEE/RENTEE shall , during the term o this Lease and any renewal or
extension hereof, at its sole expense, maintain the Premises in a clean, orderly and good
condition, reasonable wear and tear excepted. LESSEE/RENTEE shall not commit or suffer to
be committed any waste or any nuisance upon the Premises . LESSEE/RENTEE shall not
knowingly commit or willingly permit to occur or be committed any act or thing contrary to the
laws and regulations prescribed from time to time by any federal , state or municipal authority.
LESSEE/RENTEE shall pay, or cause to be paid, all charges for water, sewer, gas, electricity ,
light, heat, power, telephone and other utility service used or supplied upon or in connection with
the Premises, and all charges for licenses and permits necessary for use
o
the Premises for the
purposes authorized herein. LESSEE/RENTEE shall not permit the accumulation o any rubbish,
dirt or refuse
on
the Premises or
on
the streets, pathways, sidewalks, planters, curbs or alleys
(Mission Street, Eighth Avenue, San Carlos Street and Sunset Center ramp) adjoining the
Premises and shall promptly remove all such material.
LESSEE/RENTEE accepts the Premises as being in good and sanitary order, condition and
repair, and shall surrender unto LESSOR/RENTOR Premises in clean and good condition ,
reasonable use and wear thereof excepted, upon the termination o this Lease.
LESSEE/RENTEE shall provide and pay for ongoing maintenance of landscaping ensuring the
natural growth characteristic of same, including the continued watering and maintenance
o
landscaping and planters for the term o this Lease. LESSOR/RENTOR shall
be
responsible for
maintenance and repair o light poles/lights, electricity and on or by the premises, asphalt
damage, and plumbing located
on
or related to use.
7. Improvements.
7.1 LESSEE/RENTEE shall have the right, from time to time, to make such alterations
and improvements to the Premises
as
shall be reasonably necessary or appropriate in
LESSEEs/RENTEEs judgment for LESSEEs/RENTEEs use o the Premises as provided
herein, subject to LESSEEs/RENTEEs first obtaining LESSORs/RENTOR s approval o plans
therefor, which consent and approval shall not be unreasonably withheld . All such alterations
and improvements shall be deemed to be part of Premises herein described and shall remain
upon Premises at the sole discretion
o
LESSOR/RENTOR, and become the property of
LESSOR/RENTOR upon the termination of this Lease or any extension or renewal thereof.
8. Indemnity.
8.1 LESSEE/RENTEE hereby agrees to indemnify, defend and hold
LESSOR/RENTOR and its public officials , officers and employees, harmless from and against all
liabilities, losses, costs and expenses incurred by LESSOR/RENTOR and claims made against
LESSOR /RENTOR for injury or death to persons or damage to property of whatsoever kind or
nature (including, without limitation, attorneys fees and costs) which are
in
any way connected
with LESSEEs/RENTEEs use or occupancy of Premises
or
the streets, sidewalks and alleys
adjacent thereto.
9 Compliance with the Law.
9.1 LESSEE/RENTEE shall , at its sole cost and expense, comply with all
requirements o municipal , state and federal authorities now, or which may hereafter be, in force
pertaining to LESSEE s/RENTEE s use or occupancy o the Premises, or LESSORs/RENTOR s
ownership thereof. The judgment
o
any court of competent, jurisdiction
or
the admission of
LESSEE/RENTEE
in
any action or proceeding against LESSEE/RENTEE, whether
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LESSOR/RENTOR be a party thereto or not, that LESSEE/RENTEE has violated any such
ordinance regulation or statute in its use or occupancy of the Premises and adjacent areas shall
be conclusive of that fact as between LESSOR/RENTOR and LESSEE/RENTEE.
10. Insurance.
10.1 LESSOR/RENTOR shall maintain in effect throughout the term of this Agreement
a policy or policies o insurance with the following minimum limits o liability:
a. Commercial general liability, including but not limited to premises, personal
injuries, death, products, and completed operations, with a combined single lim it
o liability of 1 ,000,000 per occurrence, and
b. LESSEE/RENTEE shall maintain workers compensation insurance in accordance
with the California Labor Code with a minimum o 1 ,000,000 per occurrence for
employer liability.
LESSEE/RENTEE shall provide and maintain at its own expense , during the term of this
Agreement , a comprehensive general liability policy, including but not limited to premises,
personal injuries, products, and completed operations, o insurance, satisfactory to
LESSOR/RENTOR, with a combined single limit
o
not less than ONE MILLION DOLLARS
( 1 ,000,000) per occurrence for property damage and for bodily injury or death of persons.
All insurance required by this Agreement shall be
with a company acceptable to
LESSOR/RENTOR and authorized by law to conduct insurance business
in
the State of
California . All such insurance shall be written
on
an occurrence basis, or, if the policy
is
not
written
on
an occurrence basis, such policy with the coverage required herein shall continue in
effect for a period o two (2) years.
Each insurance policy shall provide
an
endorsement naming CITY, its officers, agents,
employees and volunteers as Additional Insured and shall further provide that such insurance
is
primary insurance to any insurance or self-insurance maintained by CITY and that the insurance
o
the Additional Insured shall not be called upon to contribute to a loss covered by the insurance
CITY.
Each insurance policy shall provide that LESSOR/RENTOR shall be given notice in writing at
least thirty (30) days in advance
o
any change, cancellation
or
non-renewal thereof. Said policy
shall provide identical coverage for each subcontractor, if any, performing work under this
Agreement,
or
be accompanied by a certificate of insurance showing each subcontractor has
identical coverage.
As a condition precedent to LESSORIRENTOR performance pursuant to this Agreement ,
LESSEE/RENTEE shall file with a certificate of insurance with the City Risk Management Officer,
on or before May 1, 2005, showing that they have in effect the insurance required by this
Agreement. LESSEE/RENTEE shall file a new or amended certificate of insurance promptly
after any change is made to any insurance policy which would alter the information on the
certificate then
on
file.
10.2 For all times during the term o this Lease and any extension or renewal hereof,
LESSEE/RENTEE shall procure and maintain , at LESSEEs/RENTEE s sole expense, fire and
extended coverage, vandalism and malicious mischief and all-risk insurance coverage for its own
personal property and leasehold improvements. LESSEE/RENTEE
shall submit to
LESSOR/RENTOR certificates evincing the insurance required hereunder, which certificates
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shall name LESSOR/RENTOR and its public officials, officers and employees as additional
insureds as its interests may appear and shall contain a written obligation on the part o the
insurance carrier (s) named therein requiring that carrier shall notify LESSOR/RENTOR in writing
thirty (30) days prior to any cancellation , modification, or nonrenewal thereof for any cause or
reason whatsoever.
11
. Default and Remedies.
11 1
The occurrence of any one or more of the following events shall constitute a
material default and breach of this Lease by LESSEE/RENTEE:
a. The vacating or abandonment of Premises by LESSEE/RENTEE.
b. The failure by LESSEE/RENTEE to make any payment o rent or any other
payment required to by made by LESSEE/RENTEE hereunder, as and
when due, where such failure shall continue for a period
o
three (3) days
after written notice thereof from LESSSOR/RENTOR to
LESSEE/RENTEE. In the event that LESSOR/RENTOR serves
LESSEE/RENTEE with a Notice to Pay Rent or Quit pursuant to applicable
unlawful
detainer statues, such Notice to Pay Rent or Quit shall also
constitute the notice required by this subparagraph .
c. The failure by LESSEE/RENTEE to observe or perform any o the
covenants, conditions or provisions
o
this Lease to be observed or
performed by LESSEE/RENTEE, other than described in subparagraph b.
above, where such failure shall continue for a period of thirty (30) days after
written notice thereof from LESSOR/RENTOR to LESSEE/RENTEE;
provided, however, that if the nature o LESSEE s/RENTEEs default
is
such that more than thirty (30) days is reasonably required for its cure , then
LESSEE/RENTEE shall not be deemed to be in default if
LESSEE/RENTEE commences such cure within said thirty-(30)-day period
and thereafter diligently prosecutes such cure to completion.
12.
No
Waiver Implied.
12 .1 The continuation by LESSOR/RENTOR of the tenancy of the LESSEE/RENTEE
following a breach of the terms hereof by LESSEE/RENTEE shall in no event be considered a
waiver by LESSOR/RENTOR of any subsequent breach by LESSEE/RENTEE or of the benefits
of any
o
the provisions thereof or in any way subject LESSOR/RENTOR to legal disability.
13. Eminent Domain.
13 1 If any part of the premises shall be taken or condemned or a public or quasi-
public use, and a part thereof remains which
is
susceptible o occupation hereunder,
LESSOR/RENTOR shall have the sole option to terminate this Lease as pertaining to the entire
Premises as of the date when title to the part so condemned vests in the condemnor, but this
Lease shall as to the parts so take , continue
in
full force and effect except that the rent payable
hereunder shall be adjusted so that LESSEE/RENTEE shall be required to pay for the remainder
of the term only such portion o such rent as the value o the part remaining after condemnation
bears to the value o the entire Premises at the date of condemnation. If the entire Premises is
taken or condemned, or if such part thereof be taken or condemned which renders , in the
reasonable judgment o both LESSORIRENTOR and LESSEE/RENTEE, that portion of the
Premises remaining unusable for the uses herein described , this Lease shall terminate upon
such taking or condemnation, if a part or all of the premises be taken
or
condemned, all
compensation to be awarded upon such condemnation or taking shall be paid to
LESSOR/RENTOR
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14. Audit.
14.1 On January 1 and July 1
o
each year during the term
o
this Lease or any
renewal or extension hereof, a representative from LESSOR/RENTOR and a representative from
LESSEE/RENTEE shall meet for
an
audit and review o the parking operation at the request of
LESSOR/RENTOR. Any adjustments to the monthly rental shall be paid within thirty (30) days
from the completion o the audit.
14.2
In
addition, within ten (10) days after the end of each Lease-year, commencing
with 1 October 2015 and ending with the tenth (10th) day of the month following the last month o
the Lease term, LESSEE/RENTEE shall furnish LESSOR/RENTOR with a statement to be
certified as correct by LESSEE/RENTEE or the employee of LESSEE/RENTEE/RENTEE s
authorized so to certify, which sets forth LESSEE s gross parking revenue for the year just
concluded. With each annual statement, LESSEE/RENTEE shall pay to LESSOR/RENTOR the
amount of any additional percentage rent which is payable to LESSOR/RENTOR, considering
any installments of percentage rent paid by LESSEE/RENTEE to LESSOR/RENTOR during the
previous Lease-year or partial Lease-year, as appropriate. If the annual statement shows that
during the previous Lease-year, LESSEE/RENTEE paid more percentage rent than it was
obligated to pay under the terms o this Lease, the amount of such overpayment shall be applied
to the next installment or installments
o
minimum rent due
or
, if such overpayment was in the
last year
o
the Lease term, LESSORIRENTOR shall refund to LESSEE/RENTEE the full amount
of such overpayment within thirty (30) days of LESSORs/RENTOR s receipt o the statement.
14.3 The acceptance by LESSOR/RENTOR of any monies paid to
LESSOR/RENTOR by LESSEE/RENTEE as percentage rent for Premises
as shown by any annual statement furnished by LESSEE/RENTEE shall
not be an admission of the accuracy of such statement, or of the
sufficiency
o
the amount
o
percentage rent payments, but
LESSOR/RENTOR shall be entitled at any time within three (3) years from
the end of the Lease-year for which any such percentage rent payments
have been made to question the sufficiency o the amount paid and/or the
accuracy
o
the statement or statements furnished
by
LESSEE/RENTEE to
justify the amount. LESSEE/RENTEE shall,
or
each period of three (3)
years, including the three (3) years , following the end
o
the term of this
Lease, keep safe and intact all of the records, books, and accounts
relevant to the gross parking revenue generated on Premises and shall ,
upon request, make such records available to LESSOR/RENTOR,
LESSORs/LESSORs auditor, representative or agent for examination at
any reasonable time during such period .
14.4 LESSEE/RENTEE shall keep full and detailed accounts and exercise such
controls as may be necessary for proper financial management under this Agreement ; the
accounting and control systems shall be satisfactory to LESSOR/RENTOR. LESSOR/RENTOR
and LESSOR s/RENTOR s auditor shall be afforded access to LESSEE s/RENTEEs records,
books, correspondence and other data relating to this Agreement. LESSEE/RENTEE shall
preserve these records, books, correspondence and other data relating to this Agreement or a
period
o
three (3) years after final payment, or for such longer period as may be required by law.
In addition, LESSEE/RENTEE agrees to make said records, books, correspondence and other
data relating to this Agreement available to LESSOR/RENTOR
as
LESSORs/RENTORs
principal place
o
business upon 7 hours written notice.
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15. Rates, Distribution, Stall Count.
15.1 Specifications and rates, Sunset Center Parking Summary (all subject to review,
change and approval by Resolution
o
LESSOR's/RENTOR's City Council):
Stall Count:
Standard (9 x 18)
Compact (8 x 16)
Distribution
o
Stalls:
Monthly Permits
Transient
Rates:
71
64
135
Approx 70
Approx 65
Monthly 60 month
Transient 2 hour
Sunset Center Special Events No charge after 5 p.m.
16. LESSOR's/RENTOR's Access.
16.1 LESSOR/RENTOR and LESSOR's/RENTOR's agents shall have the right to enter
Premises at reasonable times for the purpose of inspecting the same, showing the same to
prospective purchasers, lenders or lessees, and make such alterations, repairs, improvements or
additions to Premises as LESSOR/RENTOR may deem necessary or desirable. During the last
one hundred and twenty (120) days o the term o this Lease, LESSOR/RENTOR may, at any
time, place on or about Premises any ordinary For Lease signs, all without rebate of rent to
LESSEE/RENTEE or liability to LESSOR/RENTOR.
17. Assignment and Subletting.
17.1 In consideration for the favorable rental and lease terms and conditions , this
Lease
is
personal to LESSEE/RENTEE and
as
such LESSEE/RENTEE shall not sell , transfer,
assign, mortgage or hypothecate this Lease,
or
any interest in this Lease, nor permit the use
o
Premises by any person or persons other than LESSEE/RENTEE, nor sublet Premises or any
part thereof. However, in the event that LESSEE/RENTEE desires to sell , transfer, assign,
sublet, mortgage
or
hypothecate this Lease or any interest therein, the parties hereto agree that
it shall be reasonable for LESSOR's/RENTOR's consent thereto , if any, to be predicated, in part,
upon the financial and professional qualifications of the proposed successor in interest as well as
the proposed successor's willingness to pay additional rent in an amount then designated by
LESSOR/RENTOR to be the then-fair market rental for similar space in the vicinity o Premises
and it shall be reasonable that such consent shall be subject to a document preparation fee of
not less than one thousand dollars
( 1
,000). Consent to any
o
the aforementioned acts shall not
operate as a waiver o LESSOR's/RENTOR's right to terminate this Lease
in
the event o a sale,
transfer, assignment or sublease o Premises.
18. Hold-Over Tenant.
18.1 It is covenanted that there shall be no renewal
o
this Lease, except upon
execution o a written agreement, and the fact that LESSEE/RENTEE may continue in
possession of Premises without the written consent of LESSOR/RENTOR, shall not operate to
renew this Lease. If LESSEE/RENTEE should hold over after the expiration of the term hereof
without the written consent of LESSOR/RENTOR, LESSEE/RENTEE shall be deemed to be a
tenant at sufferance. This provision for hold-over tenancy is not to be construed as limiting the
rights or remedies otherwise available to LESSOR/RENTOR to remove LESSEE/RENTEE, or to
limit the rights of LESSOR/RENTOR or LESSEE/RENTEE to resolve any dispute relating to
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rental for any option period. In the event of a holdover, the rent will be the then-current base rent
plus five hundred dollars ( 500) per month.
19. Capital Improvements.
19.1 Cost and or installation o any future capital improvements proposed
by
either
party shall be negotiated in good faith at the time of any renewal date of this Lease Agreement.
20. Binding on Successor.
20.1 Subject to the provisions contained in this Lease, the covenants and conditions o
each party herein specified shall apply to and bind the heirs, executors, administrators and
successors o such party.
21 . Notices.
21.1 All notices to be given to LESSEE/RENTEE or LESSOR/RENTOR shall be made
in writing and shall be deemed delivered upon receipt either personally or by registered or
certified mail addressed as follows:
LESSEE/RENTEE
Pacific Parking and Valet, LLC
dba National Parking and Valet
578 A Houston Street
Monterey, CA 93940
22. Attorney's Fees.
LESSOR/RENTOR:
City
o
Carmel-by-the-Sea
Attn: City Administrator
Box CC
Carmel-by-the-Sea, CA 93921
22 1 If either party hereto should bring any suit against the other party hereto (formal
judicial proceeding, mediation or arbitration) , for the breach
o any term, covenant, condition or
obligation herein contained to
be
kept by such other party for the recovery of any sum due
hereunder,
or
to recover possession o Premises, or for any summary action for forfeiture of this
Lease or to prevent further violations of any o its terms, covenants, conditions, or obligations, or
for any other relief then , and
in
that event, the case shall
be
handled
in
Monterey County,
California, and the prevailing party in such suit or summary action shall be entitled to a
reasonable attorney's fee to be fixed by the judge, mediator or arbitrator hearing the case and
such fee shall
be
included in the judgment, together with all costs.
23. Governing Law.
23.1 This Lease shall be governed by the laws o the State o California.
24. Agreement Contains All Understandings; Amendment
24.1 This document represents the entire and integrated Agreement between
LESSOR/RENTOR and LESSEE/RENTEE supersedes all prior negotiations , representations,
and agreements, either written or oral.
24.2 LESSEE/RENTEE shall not bring onto, or install, or permit to be brought onto
or
installed on the Premises any hazardous materials as defined in Article
25 1
above.
24.3 LESSEE/RENTEE agrees to indemnify, defend and hold LESSOR/RENTOR
harmless from and against all liabilities, claims, actions , damages, costs and expenses or loss
arising out of or resulting from the presence of any hazardous material brought or installed or
permitted to be brought or installed
by
LESSEE/RENTEE upon the demised premises.
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IN WITNESS WHEREOF, the parties hereto have set their hands this ay of
2014.
LESSOR/RENTOR:
CITY OF CARMEL-BY-THE-SEA
Doug Sch 1tz
City Administrator
ATTEST:
Lori Frontella, MMC
Interim City Clerk
LESSEE/RENTEE:
NATIONAL PARKING VALET, a division of
PACIFIC PARKING VALET, LLC
Steven E Summers
Managing Operating Partner