Ordinance 2685CITY OF ALAEDA ORDINANCE NO.
New Series
2685
APPROVING AND AUTHORIZING THE EXECUTION OF AMENDMENT
TO EXISTING LEASE AGREEMENT WITH THE LINOAKS MOTEL
BY REDUCING MONTHLY RENTAL RATE
WHEREAS , on February 16 , 1990 , the City of Alameda , aslessor, entered into an agreement with Mohammad A. and Farida
Sheikh , as tenants for the lease of the Linoaks Motel ("Original
Lease ); and
WHEREAS , such Original Lease had an initial term of one
year with month to month extensions thereafter; and
WHEREAS , by Ordinance No. 2620, adopted December 1, 1992,
the city Council authorized an extension of the Original Lease
until April 1 , 1994 with a month to month extension thereafter
("First Amendment"); and
WHEREAS, the First Amendment to the Original Lease
increased the rent from $13 500 per month to $16 000 per month and
provided for an annual 4% increase commencing April 1, 1994; and
WHEREAS , a review of the Monthly Income Statements for
calendar year 1994 show a 10% reduction in revenue for the past
five months and a 2% increase in expenditures; and
WHEREAS , the tenants attribute the reduced revenues to
poor economy, competition from new motels and reduced work at NAS
Alameda; and
WHEREAS , due to a steady decline in income and increased
expenses , the tenants of the Linoaks Motel have requested a
reduction in monthly rates from the current $16 640 per month; and
WHEREAS , the rent reduction to $12 , 000 per month willexpire on June 30, 1995 and the rent due shall increase to the
month to month extension rate set forth in the Original Lease
unless a new agreement is executed; and
WHEREAS , pursuant to City Charter section 3-10 , four
members of the city Council must approve the amendment to theexisting lease agreement.
NOW , THEREFORE, BE IT ORDAINED by the Council of the City
of Alameda that:
section 1 The City Council , by four affirmative votes
hereby authorizes the City Manager to execute an amendment to the
existing lease with Mohammad A. and Farida Sheikh for lease of theLinoaks Motel (attached hereto as Exhibit A) to set the monthly
rate at a flat $12 000 a month commencing January 1 , 1995 untilJune 30, 1995 at which time the monthly rent shall be a flat
$13 500 a month unless a new amendment is executed prior to June
30, 1995.
Section 2 This ordinance shall be in full force and
effect from and after the expiration of thirty (30) days from the
date of its final passage.
p '
reSl lng 0 lcer 0 e Cl Y council
Attest:"74
Deputy City Clerk
SECOND AMENDMENT TO LEASE
This Second Amendment of the Lease , entered into this
day of February, 1995 , by and between the CITY OF ALAEDA , a
municipal corporation (hereinafter "Landlord"and Mohammed Sheikh and Farida Sheikh, husband and wife, (hereinafter
collectively "Tenant"), is made with reference to the following:
RECITALS:
A. On February 16 , 1990 , Landlord and Tenant entered into an
agreement for the lease of the Linoaks Motel (hereinafter "Original
Lease
) .
B. On December 1 , 1992 , Landlord and Tenant entered into an
agreement to extend the term of the Original Lease (hereinafter
First Amendment"
) .
C. Landlord and Tenant desire to further amend the Original
Agreement and First Amendment on the terms and conditions set forth
herein.
NOW , THEREFORE, it is mutually agreed by and between and
undersigned parties as follows:1. Commencing on January 1 , 1995 and continuing for a trial
period of six months which is until June 3 0, 1995, the rent
shall be a flat rate of Twelve Thousand Dollars ($12 000) permonth. Tenant understand that during this six month trial
period , City Staff shall reexamine Tenant I s Income Statement
and shall make a recommendation to the City Council as to
whether the rate shall continue to be reduced.2. The Twelve Thousand Dollars ($12,000) per month rate
shall terminate June 30, 1995 , and the monthly rent shall
thereafter increase to Thirteen Thousand Five HundreQ Dollars
($13 500) per month the month to month extension rate of the
original Lease , unless a new amendment is executed prior to
June 1995.3. Except as expressly modified herein all other terms and
covenants set forth in the Original Lease and First Amendment
shall remain the same and shall be in full force and effect.
EXHIBIT A
IN WITNESS WHER O?, the parties hereto have caused thi5 Second
Amendment to Lease to be eXQcut d on the ddY and y ar first above
'lrJ. ttan.
TENAN CITY Ol" ALEDA
A Municipal Corporation
mmed A. Sheikh
NDEC FOR APPROVAL,
~~~
PROVED AS TO FORM:
far da s . xn
ATTEST:
Ci ty ClerK
5 \ centr . ne \1 C&x.
the undersigned , hereby certify that the foregoing Ordinance was
duly and regularly adopted and passed by the Council of the City of
Alameda in regular meeting assembled on the Jth day of iebruary 1995 by the following vote to wit:
AYES:Co'Unci::memBers :A_rnerich , DeT itt, Lucas,
Manni'x and President Appezzato -
NOES:None.
ABSENT:None.
ABSTENTIONS:None.
IN WITNESS, WHEREOF I have hereunto set my hand and aff ixed the
official seal of said City this 8th day of Februarv , 1995.
atricia Calbreath, Deputy City Clerk
City of Alameda