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HomeMy WebLinkAboutLAG98-002 - Original - Urban Landmark Corporation (ULC) - Kent Valley Ice Arena Land Lease - 11/01/1998 Return Address: �A�000�r4190012 CityAttn:of Kent Management KING COUNTY Wq3 3a,00 220 Fourth Ave. S. Kent,WA 98032 WASHINGTON STATE COUNTY AUDITOR/RECORDER'S COVER SHEET Document Title: LAND LEASE AGREEMENT FOR KENT VALLEYICE ARENA Reference Number(s): N/A \ Grantor(s): City of Kent, a Washington municipal corporation Grantee(s): Urban Landmark Corporation,a Washington corporation m cl� Legal Description: That portion of Section 23, Townip 22 North, Range 4 East, W.M., in King County, Washington,described as followsd��,`' o h�� c� Commencing at the northeast comer of said Section 23;thence North 89059'15"West along Q' the North line of said section 2001.90 feet to the northeast comer of the Frances Stewart Tract II } _i as recorded under Auditor's File No.629612;thence South 00°39'38"West,33.00 feet along lr �t the easterly boundary of said tract to the true point of beginning; thence South 00°39'38" o West along said easterly boundary of the Frances Stewart Tract, 351.01 feet to Point"B"; x r thence North 88059'15"West,444.17 feet;thence North 00039'38"East,351.01 feet to Point "A';thence South 88059'15"East,444.17 feet to the true point of beginning. (Also known �+ .C. ,>. as Lot B, City of Kent Lot Line Adjustment#LL2000-5, King County Auditor's File No. 20000412001699). Together with an easement for ingress,egress and signage described as follows: 4 � Beginning at aforementioned point"A";thence North 88°59'15"West, 50.00 feet;thence t j South 00°39'38"West,381.01 feet;thence south 88°59'15"East,50.00 feet;thence North K s 00039'38"East,381.01 feet to Point"A"and the point of beginning. Together with an easement for ingress,egress and utilities described as follows: Beginning at aforementioned point"B';thence South 00039'38"West, 30.00 feet;thence North 88059'15"West,444.17 feet;thence North 00039'38"East,30.00 feet;thence South 88059'15"East,444.17 feet to point"B"and the point of beginning. And reserving an easement unto the City of Kent for ingress,egress for maintenance of storm drainage facilities,described as follows: The easterly 25.00 feet of the above described property. Assessor's Property Tax Parcel/Account Number(s): 232204-9048-08 110 LAND LEASE AGREEMENT FOR KENT VALLEY ICE ARENA THIS LEASE AGREEMENT (hereinafter "Lease") is between the CITY OF KENT (hereinafter "City"), a municipal corporation of the State of Washington, with offices located at 220 4`h Avenue South, Kent, Washington 98032, and URBAN LANDMARK CORPORATION (hereinafter "ULC"). a duly qualified Washington corporation in good standing, with offices located at 19803 u'8th Avenue West, Lynnwood, Washington 98036. RECITALS WHEREAS, the City owns certain land cornmonly known as the Russell Road Soccer Fields; and WHEREAS, the City and ULC have executed a Memorandum of Agreement for Commitment to Contract For Ice Arena Facilities dated August 6, 1998, (Exhibit C) for the purpose of building an ice arena on the soccer field properties owned by the City; and I WHEREAS, the soccer fields were developed through funding from the Interagency Committee For Outdoor Recreation ("I_AC"); and 0 rn WHEREAS, it is the parties' desire to enter into this Lease to allow for the development and operation of an ice skating facility ("Facility") on the soccer field property; and Cn�f WHEREAS, it is the City's intention to build new soccer fields to replace the soccer fields on the Russell Road park property to meet the funding requirements of IAC and to allow for the development of an ice skating arena on the Russell Road Park property pursuant to this Lease; NOW, THEREFORE, the City and IJLC agree as follows: AGREEMENT 1. LEASED PREMISES. Subject to the following terms acid cenditions, the City hereby leases to ULC, and ULC hereby leases from the City, the following described premises (the "Property"), to wit: Approximately 3.6 acres on the City parklands, commonly known as the Russell Road Soccer Fields in Kent, Washington., which is further described in Exhibit A attached hereto and incorporated herein by this reference. 2. TERM. The term of this Lease shall be 42 (forty-two) years, unless earlier terminated as provided herein, beginning November 1, 1998 and expiring on October 31, 2040. 3. CONSIDERATION FOR THIS LEASE. A. As consideration for this lease and in lieu of market value lease payments for the land, ULC Shall: 1. Pay the City one dollar per year during the term of this lease. 2. Construct an ice skating facility containing one sheet of ice on the Property as set forth in the site plan and survey attached hereto as Exhibit B, which is incorporated herein by this reference (hereinafter "Building A") in accordance with the provisions of paragraph 4 of this Lease. During the term of this Lease, title to Building A will remain vested in ULC. Upon termination or expiration of this Lease, however, Building A, and Building B as identified in this agreement, if constructed, along with fixtures and all other improvements on the Property, excluding equipment and personal property, shall become the property of the City. ULC agrees to execute any and all documents necessary to complete this conveyance as may be necessary to comply with the Statute of Frauds. The parties agree that this Lease shall suffice as an adequate "bill of sale" for Building m A on termination or expiration of this Lease in the event ULC does not execute one. co 3. Provide the City with use of the facility and its programs for organized City purposes ("City Use"). City Use includes use by third parties - designated by the City, including but not limited to schools. The City will `-' have City Use of the facility on weekdays only (Monday through Friday) f from September 1 through May 30 of any given year between the hours of 9:30 a.m. to 11:30 a.m., excluding holidays. The City shall not be entitled � to monetary compensation by ULC should the City not use the facility during any or all of the dates and times allocated to it as provided herein. City Use of the facility will be at no charge, including professional instruction; however, equipment (i.e. skates) will be charged to the user. Any changes in these City Use times and dates must be agreed upon in writing by both parties. City Use (including City designated third party use) will include learn-to-skate activities, but will not include public open skate, organized hockey, or figure skating activities. B. ULC estimates that the value of the above consideration paid by ULC will be approximately one million six hundred thousand dollars ($t,600,000) over the life of the lease. The amortized benefit to the City from such consideration under this Lease will thus be approximately forty thousand ($40,000) per year, which shall be deemed advance payments of rent hereunder. Further, ULC shall pay quarterly to the City on the fifteenth day of the month following the end of each quarter, the amount of State Leasehold Tax owing, as though the rent for the Property were forty thousand ($40,000) per year. The State Leasehold Tax owing will begin Ito accruing on the beginning of the first full month following the month of issuance of the building permit for Building A as identified in Section 4. ULC will be responsible for any and all leasehold tax assessments that may be made by the state and will indemnify and hold the City harmless from the same. 4. BUILDINGS TO BE CONSTRUCTED ON THE PROPERTY. A. Building A. Within thirty (30) months of the beginning of the lease term, ULC shall have constructed and opened for business Building A which shall be an ice skating facility as set forth in Exhibit B. The ice skating facility shall be developed as follows: 1. Building A will comply with all City codes. The size of Building A will be approximately 40,000 square feet. The Building A design shall include landscaping adequate to screen or otherwise enhance the appearance of the building. The design shall also include an attractive entry area. Cl) C. 2. Prior to the beginning of major construction of Building A, ULC shall provide either a performance bond acceptable to the City, an assignment n of funds, or a letter of credit in the amount of seventy-five thousand dollars ($75,000) to be held in a financial institution to be selected by ULC. r� r� 3. ULC shall promptly pay all costs for construction, including permits. c� ULC may, pursuant to permits duly obtained, remove dirt, grade the Property, remove trees, and otherwise prepare and maintain the Property in accordance with the overall purposes of this lease and as it deems proper, subject to permit requirements. Any amounts received by ULC in the course of such salvage activity may be used to reduce the cost of capital improvements upon the Property. 4. ULC will consult with the City Director of Parks and Recreation during all phases of design and construction of the facility to ensure an aesthetically pleasing and quality designed and constructed facility on its park land. 5. Following constriction, all building maintenance and operations, including utility expenses, shall be the responsibility of ULC. B. Building B Option. Subject to permitting and zoning requirements, ULC shall have the option to construct and operate a second ice arena building on the Property containing a second sheet of ice, identified herein as Building B, similar to that as proposed in Exhibit B. If this option is exercised and Building B is completed and open for business, this lease will be extended by the number of years of the original lease term that have expired at the time of receipt of all necessary permits for the construction of Building B, but in no event shall the exercise of this option by ULC extend the lease term beyond ten years. Prior to IIp construction of Building B, ULC shall be required to provide a performance bond as required and in the amount set forth in paragraph 4 for construction of Building A. 5. PURPOSES FOR WHICH THE PREMISES MAY BE USED AND OTHER RESTRICTIONS. ULC agrees that it will use and occupy the Property primarily for the purpose of providing an ice skating facility. ULC further agrees that neither it nor its successors or assigns shall use the Property for any purpose whatsoever other than skating or activities incident thereto without previously obtaining the express written consent of the City or use the Property inconsistently with any zoning regulations. ULC may provide for other compatible ancillary uses in conjunction with an ice skating facility such as a restaurant, pro-shop, video arcade, game room, in-line skating and other similar uses as long as the premises is used primarily for an ice skating facility. In the event ULC or its successors or assigns wish to use the Property for other athletic, sports, or recreational activities as the primary use of the facility, the City agrees it will consider allowing such use, so long as it is consistent with other uses of Russell Road Park facilities and so long as such proposed use is a legally permitted use within the zoning district compliments and does not compete with existing City park use or uses. Under these circumstances, the City shall not unreasonably withhold consent for such athletic, sports, and recreational activities. In the event ULC or its successors or assigns wish to use the Property for any other purpose (other than for athletic, sports or recreational -� activities), the City may withhold its consent to do so for any reason whatsoever. Any change in use approved by the City shall not interfere with the City's rights to the facility established in paragraph 3(A)(3). ' 6. REPRESENTATIONS AND WARRANTIES. A. The City represents that it has title to the Property as described in Exhibit A of rV this Lease and that the City has not assigned, transferred, or hypothecated the Property or any interest therein or consented to any such assignment, transfer, or hypothecation in a manner inconsistent with ULC's ability to develop and operate an ice skating facility pursuant to this lease, except as described herein and that the City has full authority to execute this Lease. B. The City has no actual knowledge that(i) any litigation or proceeding of or before an arbitrator or governmental authority is pending; (ii) no litigation or proceeding is threatened and; (iii) no investigation by any governmental authority is pending or threatened; affecting this Lease. C. The City has no actual knowledge of any hazardous substances, as may be defined by federal or state statute, petroleum or petroleum products present at, or in, under, or being released from the leasehold at the time of the execution of this Lease. D. ULC represents that it will not cause or allow to be caused any environmental condition (including, without limitation, permafrost, a spill, discharge or contamination) on the Property, the result of which may require remedial action pursuant to any federal, state or local law or may be the basis for the assertion of any third party claims, including claims of governmental entities. ULC agrees to indemnify, defend, and hold harmless the City, against and in respect of, any and all damages, claims, losses, liabilities, judgments, demands, fees, obligations, assessments, and expenses and costs, including, without limitation, reasonable legal, accounting, consulting, engineering and other expenses which may be imposed upon or incurred by City, or asserted against City, by any other parry or parties (including, without limitation, a governmental entity), arising out of or in connection with any environmental condition caused or allowed to be caused by ULC on the Property, including the exposure of any person to any such environmental condition. The provisions of this subsection shall survive the expiration or termination of this agreement. E. ULC acknowledges that it has examined and is in all respects familiar with the Property and any improvements thereon, and that no representations have been made by the City, its agents or employees, as to the condition of the Property or improvements thereon not expressly set forth in this Lease ULC accepts the m Property and the improvements thereon in their present condition. 7. MAINTENANCE. 0 A. ULC agrees to maintain the Property, including sidewalks (except the sidewalk situated on the James Street right of way) and on-site parking areas on the Property, in good and presentable condition during the term of this Lease. ULC agrees that at the expiration of the term of this Lease or sooner termination G:J c7 thereof, it will quit and surrender the leased Property in the same or better condition and repair as when received (and in the case of the buildings, as of completion of construction), reasonable wear and tear excepted. ULC shall promptly remove all snow and ice from the sidewalks and parking areas. B. ULC shall keep the building on the Property in good repair and shall clean and/or paint the exterior of the building with such frequency as may be required to maintain its good, clean appearance. C. In the event any damage or injury shall occur to the Property or the buildings thereon of any kind or name whatsoever, said damage or injury being caused by the carelessness, negligence, or improper conduct on the part of ULC, its agents, employees, guests, invitees, or licensees, then in each such instance, ULC shall, as soon as practicable, cause said damage or injury to be fully repaired at ULC's own cost and expense. In the event ULC fails to accomplish such repairs, the City, following written notice to ULC and a reasonable time to make such repairs, may accomplish the same and bill ULC therefor, which billing shall be payable on demand. 8. SIGNS. All signs or symbols placed by ULC in the exterior windows or doors of the buildings upon the Property or upon or adjacent to the exterior part of such buildings, including awnings, shall be subject to zoning code requirements and the City's approval which shall not be unreasonably withheld. Further, upon expiration or termination of this Lease, if requested to do so, ULC shall, at its own expense and without damage to the Property or buildings thereon, remove all such signs and symbols. Subject to permitting requirements, both parties agree to cooperate with each other on the placement of directional signs to the facility. 9. PARKING. Subject to permitting requirements, ULC shall provide a minimum of fifty- five (55) parking spaces identified in the site plan set forth in Exhibit B as "new parking" ("ULC parking lot") for skating activities conducted on the Property. ULC shall maintain all parking spaces on the Property in well-marked, signed, and otherwise good condition. The City maintains a parking lot identified in the site plan set forth in Exhibit B as "existing parking" ("City parking lot") for Russell Road Park softball and other recreational activities with approximately fifty-five (55) parking spaces situated immediately west of the ice skating facility as set forth in Exhibit B. During the term of this Lease, the City shall allow ULC to use, for parking purposes and only in support of the authorized use of the Property under this Lease, the City parking lot at no charge as a primary user from October 1 through March 31 of each year and on a first come first serve (overflow) basis during the remainder of the year. During the term of this Lease, the ULC shall allow the City to use, for parking purposes, on a first come first serve basis co, and at no charge the ULC lot including any additional parking, if any, that may be `n constructed on the Property by ULC in conjunction with development of Building B or otherwise. During the period from October 1 through March 31 of each year, the City may request primary use of the City parking lot for special events of the City by c_s providing ULC thirty (30) days prior written notice of the event. Overflow parking, as 0 opposed to primary use parking, will be subject to the needs of the primary users of each ev facility. Both parties agree to cooperate with each other to allow for maximum use of both parking lots in a manner that creates the minimum impacts to the primary users of each party's facility and with the accommodation of City special events during ULC use as primary user of the City parking lot. 10. ASSIGNMENT OR SUBLEASE. A. ULC shall not assign this Lease, the Property, or the buildings thereon or any interest therein, nor sublet the Property or the building or part with the possession thereof, except involuntarily by operation of law and as otherwise provided herein, without the prior written consent of the City. Provided that ULC is not in default, the City agrees that it will not itmeasonably withhold consent to such an assignment or subletting. B. Notwithstanding anything in this Lease to the contrary, the City irrevocably consents to (i) an assignment for collateral purposes from ULC to one or more third party financial institutions ("Secured Parties") for their benefit, of all right, title, and interest of ULC in, to, and under the Lease and improvements upon the leased Property, and (ii) any transfer or subsequent transfer of the Lease Agreement, improvements upon the Property and/or security interests thereon by such Secured Parties or their assignees or transferees, provided that all obligations under this lease agreement are current, except those obligations that are "impossible" to cure and/or those obligations which are being cured pursuant to paragraph 13(D)(2) herein, as of the date of assignment or transfer; and the assignee or transferee agrees to be bound by all the terms and conditions of this Lease. "Assignees" refers collectively to such Secured Parties and their assignees. The term "impossible" as used herein shall mean not capable of being cured even without consideration for the expense or the time involved in the cure, except when such renders the facility substantially unusable for the purpose(s) set forth in this agreement. In no event shall the security interest encumber the City's fee interest in the Property, and in connection with any financing obtained by ULC, the City agrees to assign any statutory landlord's lien it may have in any property of ULC to such Secured Parties for the purpose of facilitating such financing. No security interest granted by ULC shall impair or derogate from the City's rights with respect to ultimate ownership by the City of improvements upon expiration or termination of the Lease pursuant to paragraph 3(A) above and all rights of the secured parties to the land shall be subordinate to those of the `r' City. The obligations being secured by ULC and upon the building or cll improvements upon the Property shall not have a stated term greater than the term 0 of this Lease. rn C. In the event that (i) either (a) ULC's interest in the Lease shall be sold, assigned, or otherwise transferred pursuant to the exercise of any right, power, or remedy by any Assignee or any designee or assignee thereof, or pursuant to judicial or non judicial proceeding; or (b) ULC or Trustee rejects the Lease under Title 11 `o' United States Code, or other similar federal or state statute and such rejection is approved by the appropriate court and if' within thirty (30) days after such rejection, assignee, or any designee or assignee thereof shall so request and shall certify in writing to the City that it intends to perform the obligations of ULC as and to the extent required under this Lease; and (ii) provided that all monetary defaults are cured or waived; and (iii) all non-monetary defaults, other than by the City and other than defaults that are "impossible" to cure as defined herein, then existing with regard to the Lease herein are cured or waived, or such Assignee or any designee or assignee therefore shall be diligently attempting to cure all such non-monetary defaults and the said defaults are reasonably capable of being cured in the manner then being diligently pursued, then the City shall execute and deliver to such Assignee or such designee or assignee a new lease agreement pursuant to which lessee shall agree to perform the obligations contemplated to be performed by ULC under the original Lease; and which shall be for the balance of the remaining term under the original Lease and shall contain the same conditions, agreements, terms, provisions and limitations as the original Lease (except for those fulfilled by ULC prior to such rejection and the additional requirement that any ongoing cure then being diligently pursued shall constitute an obligation of the new Lessee and shall be completed in a reasonable time). pia References in this Lease to the Lease shall be deemed to refer to this new Lease as well. D. In the event of any proper transfer of this Lease with the consent of the City other than a transfer for security purposes only, ULC shall be automatically relieved of any and all obligations and liabilities hereunder accruing from and after the date of such transfer, provided the grantee of such transfer assumes such obligation and liabilities in writing. 11. DEFECTS AND LIABILITY. Other than for its own negligence or willful misconduct, the City shall not be liable to ULC or to any person for claims arising from any defect in the construction or condition of the Property or the buildings thereon, whether known or hidden, or for any damage by storms, rain, or leakage or their cause, arising out of or in connection with ULC's occupancy pursuant to this Lease and ULC shall indemnify, defend, and hold the City harmless for such claims. The provisions of this section shall survive the expiration or termination of this agreement. 12. CONDITIONS TO LEASE. If the conditions set forth in Section B of the Memorandum of Agreement to Contract for Ice Arena Facilities dated August 6, 1998, attached as Exhibit C and incorporated herein by reference, are not fulfilled and removed w to the satisfaction of the City by October 31, 1999, then this Lease shall terminate and ULC shall have no further obligation to the City and the City shall have no further obligation to ULC under this Lease, except that any deposit by ULC or assignment for the security of the City under this Lease pursuant to paragraph 4(A)(2) shall be released ,y by the City and returned to ULC at that time. Notwithstanding other portions of this Lease to the contra ry, until October 31, 1999 or such time as ULC fulfills and removes the conditions noted in this section to the satisfaction of the City, whichever occurs first, ULC's right to use the Property shall be limited to the right to go upon the Property for the purpose of surveying, inspecting, and conducting soil tests on the Property, including limited excavation for this purpose. During such initial period, ULC shall not commit waste upon the Property and shall not remove any trees during such initial period. If the Lease herein is tenminated under this paragraph, ULC shall not be obligated to make any payment to the City for the use of the Property during the time after execution of this Lease. 13. DEFAULT AND REMEDIES. ULC expressly covenants and agrees to timely perform each and all of the matters and things required of it in this Lease. A. Events of Default. The occurrence of any one of more of the following events ("Event of Default" or "Events of Default" as the case may be) shall constitute a default and breach of this Lease by ULC: 1. Cessation of Business or Abandonment. The permanent cessation of business operations or abandonment of the Property, Building A or any future building on the Property by ULC and after ninety (90) days written notice to cure thereof by the City to ULC. /to 2. Failure to Make Required Payments. The failure by ULC to make any required payment to the City under this Lease, as and when due, where such failure shall continue for a period of ninety (90) days after written notice to cure thereof by the City to ULC. 3. Failure to Perform. The failure by ULC to observe or perform other provisions of this Lease which cause material harm to the City's reversionary interest in this lease including but not limited to the requirement to maintain the Property and buildings thereon pursuant to paragraph 7 above, and other than described in paragraph 13(A)(2) above, where such failure shall continue for a period of ninety (90) days after written notice to cure thereof by the City to ULC; provided, however, that if the nature of ULC's default is such that more than ninety (90) days are reasonably required for its cure, then ULC shall notify the City that more than ninety (90) days are likely to be required and ULC shall have such time as the parties agree is reasonably necessary to effect a cure, and ULC shall not be deemed to be in default if ULC satisfactorily completes such cure within the period required. 4. Timely Completion qJ Building A. ULC shall be in default if ULC fails to substantially complete Building A in satisfactory condition and to open this building for business within thirty (30) months of the beginning of the lease term or if ULC fails to diligently pursue and complete Building A in accordance with good and accepted engineering practices. In each case, A+ ULC shall be considered to be in default after ninety (90) days written notice to cure such default by the City to ULC. If any such failure to complete is due to fire or other casualty and through no fault of ULC, then the provisions of paragraph 18 entitled "Fire or Other Casualty" hereunder shall apply and extend the time allowed therein for performance without default by ULC. In the event that ULC otherwise defaults under this paragraph, ULC may request additional time for cure of any failure hereunder. The City shall reasonably consider ULC's request for additional time for cure and approval of additional time shall not be unreasonably withheld. If additional time is allowed, ULC shall not be in default during such additional time and the performance bond and assignment of funds if any described in paragraph 4(A)(2) above shall be extended accordingly. During any notice period(s) described above, ULC shall fully and faithfully continue to perform its obligations under this Lease unless relieved of same in writing by the City. Further, ULC shall suspend activities undertaken on the City's behalf pursuant to this Lease if and to the extent requested in writing by the City. 110 B. Notice to and Cure by Third Parties. In addition to any notice of default required in this paragraph 13(A) above which is to be provided to ULC, if the City has been provided in writing other persons or entities who reasonably require notice, then the City shall also notify them in the same manner and at the same time as notice is provided to ULC. If such persons or entities have a security interest in the Property or improvements therein, or are Assignees, then such persons or entities shall have an additional period of ninety (90) days to cure any event of default in addition to any time identified above. Such Secured Parties or Assignees shall be third party beneficiaries of this Lease. The City agrees to accept any payment or performance by Secured Parties or Assignees in satisfaction of ULC's obligation under this Lease. Further, the City agrees that Secured Parties and Assignees may exercise all remedies under this Lease and make all demands and give all notices and make all requests required or permitted to be made by ULC under this Lease. C. Remedy if Default Under 13(A)(4) Above. In the event that ULC defaults as defined in paragraph 13(A)(4) above, and if ULC fails to cure such default within the time provided for cure, then the City may, but shall not be required to draw upon the Performance Bond or assigned fund to complete Building A, to correct any defects, to pay required costs and fees, or do any other thing required to bring =' Building A to a timely and proper completion, or if the Lease is terminated, c� rn demolish any structure on the Property and restore the Property to its general condition at the time of execution of the Lease, including landscaping, except that —� trees need not be replaced by trees of the same kind or age. Additionally, the City c� may pursue its remedy under paragraph 13(D) below. The unused amount of the assigned fund created pursuant to paragraph 4(A)(2) above, if any shall after satisfying these obligations for which the assignment of funds was provided, be returned to ULC at the substantial completion of construction and the opening of Building A for business. D. Rieht to Terminate This Lease. 1. The City may terminate this lease upon default and failure to cure within the time provided and after proper notice, except that the City agrees that, notwithstanding any right it may have at law, in equity or otherwise, it shall not (i) consent to or accept any cancellation, suspension, or termination of this Lease; (ii) petition, request, or take any other legal or administrative action which seeks to, or may reasonably be expected to, rescind, cancel, terminate, or suspend, amend, or modify this Lease or any part thereof; or (iii) claim prevention of or interference with performance of its obligations pursuant to this Lease or the suspension or termination of its obligations under this Lease as the result of any default of ULC; unless the City shall have delivered to ULC and Assignees notice as required within paragraphs 13(A) and 13(B) above, and permitted ULC and Assignees to cure the default. No claim of rescission or termination of this Lease by the City shall be binding upon any Assignee without such notice and applicable cure period except those obligations that are "impossible" to cure as defined in Section 10 which shall be waived. 2. 'Che City agrees that, i,ot-withstanding anything contained in this Lease to the contrary, upon thw occurrence of a non-monetary default under the Lease that cannot by its nature be cured without possession of the leasehold premises, the City will not cancel or terminate the Lease if and for so long as (i) any Assignee shall be diligently seeking to obtain possession of the leasehold either through a non-judicial foreclosure instituted in the State of Washington or a judicial foreclosure action or other action filed and prosecuted in the King County Superior Court (including any appeal filed therefrom); or (ii) any Assignee or any designee or assignee thereof (including any purchaser or transferee, but not including ULC or successor in interest to ULC) shall be diligently seeking to cure the non-monetary default under the Lease following such non-judicial foreclosure, judicial foreclosure action or other action filed and prosecuted in, King County Superior Court and the said default is �., reasonably capable of being cured in the manner then being diligently N pursued. r 3. The extension provided in section 13(D)(2) above is contingent on the a' Assignees keeping the monetary payments to the City under this Lease current, complying with paragraphs 4(A)(2) and 17 relating to a performance bond or assignment of finds and insurance, and Assignees ca obtaining possession within a reasonable time and curing of said non- c7 monetary default in a reasonable period of time. In addition, any subsequent assignee, purchaser, or transferee shall be obligated to diligently complete the cure. If the Assignees cannot obtain insurance as required in paragraphs 17 of this Lease without first obtaining possession of the leasehold, the provisions of paragraph 13(D) (2) above shall apply. 4. No Assignee, no; any designee or assignee thereof, as the case may be, shall be required to continue to proceed to obtain possession, or to continue in possession of the leasehold pursuant to the foregoing if and when the default under the Lease shall be cured. 14. ALTERATIONS. A. ULC shall not make any exterior alterations, additions, or improvement in or to the demised Property costing more than $20,000.00 per year, inflation adjusted in future years by the consumer price index over the term of this Lease, without the written consent of the City. Consent shall not be unreasonably withheld. B. Any such alterations, additions, and improvements consented to by the City shall be at ULC's expense. ULC shall secure any and all governmental permits required in connection with any such work and shall hold the City harmless from 1 (0 any and all liability and any and all liens resulting therefrom. All work performed shall meet all applicable building and safety codes, including but not limited to those related to requirements for parking spaces and parking availability. All alterations, additions, and improvements to the Property (including those made prior to this lease term), shall be the property of ULC during the term of this Lease, but upon termination or expiration of this Lease, such improvements except appliances and equipment which do not become a part of the buildings upon the Property, shall become the property of the City without any obligation to pay therefor. 15. TAXES AND UTILITIES. ULC shall be responsible for the provision of all services and utilities required in its utilization of the Property and buildings thereon. ULC shall be responsible for all utilities and all license fees and excise or occupation taxes covering the business conducted on the Property. ULC shall be responsible for all personal property taxes assessed against ULC, if any, for equipment and/or personal property located upon the Property. All utilities will be the responsibility of ULC including, but not limited to, water, sewer, and trash pick up pursuant to all applicable regulations. N 16. INDEMNIFICATION. Q' A. The City shall not be liable for any injury to any person or for any loss of or damage to any property (including property of ULC) occurring in or about the leased Property or the buildings thereon and caused by or resulting from any act or omission by ULC or any officer, agent, employee, guest, invitee, or visitor of o ULC; and, during the full term hereof, ULC agrees and covenants to indemnify, defend, and hold harmless the City and those persons who were, now are, or shall be duly elected or appointed officials or members or employees or agents thereof, against and from any loss, damage, costs, charge, expense, liability, claim, demand, or judgments of whatsoever kind or nature whether to persons or property, to the extent arising on said Property, in or on said building, or on any areas adjoining the same, which is under the control or use of ULC pursuant to this lease and arising out of or in connection with ULC's use and occupancy of said Property. In case any suit or cause of action shall be brought against the City on account of any act, action, neglect, omission or default on the part of ULC, its agents and/or employees, ULC hereby agrees and covenants to assume the defense thereof and to indemnify the City for any and all costs, charges, attorney's fees and other expenses and any and all judgments or awards that may be incurred or obtained against the City. B. Should a court of competent jurisdiction determine that this Agreement is subject to RCW 4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of ULC and the City, its officers, officials, employees, and volunteers, the ULC's liability hereunder shall be only to the extent of the ULC's negligence. IT IS FURTHER SPECIFICALLY AND EXPRESSLY UNDERSTOOD THAT THE INDEMNIFICATION PROVIDED HEREIN too CONSTITUTES THE ULC'S WAIVER OF IMMUNITY UNDER INDUSTRIAL INSURANCE. TITLE 51, RCW, SOLELY FOR THE PURPOSES OF THIS INDEMNIFICATION. This waiver has been mutually negotiated by the parties. The provisions of Section 16 shall survive the expiration or termination of this Agreement. 17. INSURANCE. A. ULC agrees to procure and maintain in force during the term of this Lease and any extension thereof, at its expense, general commercial liability insurance in companies and through brokers acceptable to the City. This insurance shall be adequate to protect against liability for damage claims through public use of or from accidents or other liability arising out of ULC's use or occupancy of the Property and buildings thereon. This insurance shall be in a minimum amount of $1,000,000 combined single limit per occurrence and $2,000,000 aggregate for bodily injury, personal injury and property damage. ULC agrees that, if such insurance policies are not kept in force during the term of this Lease and any extension thereof, the City may procure the necessary insurance, pay the premium therefor, and that such premium shall be repaid to the City on demand. The City shall be named as an additional insured as to liability arising out of the Property `" and buildings thereon and the insurance of ULC shall be the primary insurance as r ® to said liability. c_> rn B. During the term hereof, ULC shall carry fire and all-risk insurance covering the contents and tenant improvements on the Property with coverage at replacement value. The City shall be named as an additional insured on this policy. Insurance o coverage, if any, relating to items of property placed on the Property by ULC N shall be paid for by ULC, its assignee(s) or sublessee(s). C. ULC shall provide to the City documentary evidence, certified by the insurer, of all insurance(s) required in this Lease. D. The City shall not be liable to ULC (by way of subrogation or otherwise) or to any insurance company insuring the other party for any loss or damage to any building, structure, or other tangible property, or any resulting loss of income, or losses under worker's compensation laws and benefits, even though such loss or damage might have been occasioned by the negligence of the City its agents or employees, if any such loss or damage is covered by insurance benefiting the party suffering such loss or damage or was required to be covered by insurance pursuant to this Lease. ULC shall, upon obtaining the policies of insurance required give notice to the insurance carrier or carriers that the foregoing mutual waiver of subrogation is contained in this Lease. E. Insurance limit amounts referred to in this paragraph and required to be maintained by ULC shall be increased at the request of the City if such increased amounts are no greater than those required generally by the City of its other t �o lessees at that time. Insurance limit amounts referred to in this paragraph and required to be maintained by ULC shall be reduced at the request of ULC if such decreased amounts are no less than those required generally by the City of its other lessees at that time. Requests to increase or decrease coverage shall be made no more frequently than every five years. F. Should an insurance policy as required herein be infeasible to obtain due to market conditions, ULC may submit to the City alternate proposals with the same coverage requirements to protect the City's interest under this Lease in lieu of such insurance. The City shall have the sole discretion to approve or deny such proposal. 18. FIRE OR OTHER CASUALTY. c� A. Should ULC's space be damaged or become unsuitable for use (through no fault of ULC) by virtue of damage to the same or to other portions of the building, from fire or other casualty, ULC shall immediately notify the City of such o damage, and if the damage is reasonably repairable within twelve (12) months rn working time (with the repair work and preparations therefore to be done during regular working hours on regular work days), the damages shall be repaired with 3 due diligence by ULC. The period of time required for such repairs shall not extend the term of this Lease or affect in any way ULC's obligation to surrender ownership of the building to the City at the expiration of this Lease. 0 0 cv B. Should the buildings or the leased Property (through no fault of ULC) be completely destroyed by fire or other casualty, or be damaged to such an extent that the damage cannot reasonably be repaired within twelve (12) months, then ULC shall have the option to terminate this Lease. In the event that this subparagraph shall become applicable, ULC shall advise the City within ninety (90) days of the damage whether ULC has elected to continue the Lease in effect or to terminate it. If ULC shall elect to continue this Lease in effect, it shall commence and prosecute with due diligence any work necessary to restore or repair the buildings and Property and in accordance with plans and specifications approved by the City. If ULC shall fail to notify the City of its election within said ninety (90) day period, ULC shall be deemed to have elected to terminate this Lease, and the Lease shall automatically terminate ninety (90) days after the occurrence or the event giving rise to this subparagraph. 19. WAIVER. No waiver of any breach or breaches of any provision, covenant, or condition of this Lease shall be construed to be a waiver of any preceding or succeeding breach of such provision, covenant, or condition, and time is of the essence of each and every provision, covenant and condition herein contained and on the part of either the City or ULC to be done and performed. 20. LITIGATION AND VENUE. In the event of a dispute between the parties regarding performance or interpretation of this Lease, the parties agree to attempt to use good faith I efforts to resolve such dispute without resorting to litigation. To this end, the parties will meet in a timely fashion in an attempt to resolve their differences. In the event any litigation is brought by either party against the other to recover any rent or other sum, or on account of the breach of any provision, covenant, or condition herein contained, or for the termination of this Lease, or for the recovery of the possession of the Property or buildings thereon or any part thereof, the prevailing party in said action shall be entitled to a reasonable sum as fees for the attorneys of said prevailing party and court costs in said action, to be assessed and fixed by the Court wherein said action shall be brought. This document shall be construed according to the laws of the State of Washington and venue in any ensuing litigation shall be in the Superior Court of King County. 21. NOTICES. All notices to be given or served hereunder whether pursuant to the terms of this Lease or any provisions of law, shall be deemed to have been given and served if given in writing, either in person or when mailed by United States certified mail, postage prepaid, addressed as follows: CITY OF KENT: URBAN LANDMARK CORP. Director of Parks and Recreation 0 220 Fourth Avenue South 19803 - 681 Avenue West a Kent, Washington 98032 Lynwood, Washington 98036 It shall be the responsibility of ULC to provide the City with the names and correct notice r ' addresses for any persons or entities who have a security interest in the Property or o improvements thereon, and who are to receive notice of default under any other provision of this Lease. N 22. REPRESENTATIVES OF THE PARTIES. A. The City's representative with regard to this Lease is the Mayor or his or her designee who is the person responsible for liaison and compliance with this Lease and who is authorized to act on behalf of the City when such action is required pursuant to this Lease Agreement. The Mayor's initial designee for this Lease Agreement is the Director of Parks and Recreation. B. ULC designates the President of ULC as the representative responsible to the City for liaison and compliance with this Lease. 23. RESTRICTIONS ON USE OF PROPERTY. A. ULC agrees that it will not engage in any activities which create, nor will it permit, excessive noise, odors, or other disturbances to other properties in the vicinity of the Property, particularly after normal Park facility hours. B. ULC shall properly dispose of all waste materials from the Property and will not store or otherwise permit hazardous or toxic materials in or on the Property (other than normal amounts for cleaning, maintenance, and like purposes). C. ULC shall not sell, advertise, or permit the selling or advertising of alcoholic beverages or tobacco products of any kind on the Property or in the buildings thereon. ULC shall make reasonable efforts to prohibit the selling of alcoholic beverages and smoking on the Property and in the buildings thereon. Nothing herein shall prevent ULC from allowing private events on the Property or in the buildings thereon, not open to the public, where alcohol is otherwise served. D. ULC shall be allowed to sell food and non-alcoholic beverages, merchandise and equipment on the Property related to its proper activities and programs. 24. EMPLOYEES OF ULC. It is acknowledged and agreed that no personnel employed or utilized by ULC shall be deemed employees or agents of the City for any purpose. ULC C" shall be responsible in full for any payment due its employees, including Workman's Compensation, insurance, payroll deduction, and all related costs. ULC shall indemnify o and hold the City harmless from any and all claims against the City for any such payments due its employees. rn 25. NON-DISCRIMINATION. ULC shall not discriminate, in employment, provision or o services, or any other activity, against any person on the grounds of race, color, creed, national origin, religion, age, sex, marital status, or the presence of any sensory, mental, 0 or physical disability. CV 26. ENTIRE AGREEMENT. This Lease and the Memorandum of Agreement for Commitment to Contract for Ice Arena Facilities dated August 6, 1998, (Exhibit C) consists of the entire agreement between the parties hereto and supersedes any and all other agreements, either oral or in writing, between them with regard to the Lease herein. Each party to this Lease acknowledges that no representations, inducements, promises, or agreements, orally or otherwise, have been made by any party or anyone acting on behalf of any party which are not embodied herein. 27. QUIET ENJOYMENT. Unless an event of default as specifically defined in paragraphs 13(A) (1) through 13(A)(4) shall occur, ULC may peaceably and quietly occupy the Property in accordance with the terms of the Lease without hindrance. 28. SUCCESSORS AND ASSIGNS. The covenants and agreements herein contained shall apply to, bind, and inure to the benefit of the parties hereto, their legal representatives, successors, and, assigns. 29. SEVERABILITY. If any part of this Lease is determined to be void as a matter of law, then that void portion shall be removed and the remainder of this Lease shall survive. If 30. CONDEMNATION. If this Lease is terminated because of a Condemnation, then ULC and the City shall share the condemnation proceeds in proportion to the fair market value of the interests held by each before termination and condemnation. 31. DRAFTING OF LEASE AGREEMENT. The City and ULC have both participated in drafting this Lease and the same shall not be construed against anyone solely based upon the fact that a party may have drafted a particular provision. The City and ULC acknowledge that they have been represented by legal counsel or have had an opportunity to be represented by legal counsel in negotiating, drafting, and the review of this Lease prior to its execution. 32. DUPLICATE ORIGINALS. This Lease may be executed in duplicate originals. IN WITNESS WHEREOF, the parties have signed and dated this Lease below. CITY OF KENT URBAN LANDMA CORPORATION By: By: I Q' Print e: Print Name: ley', Nvier Its: Its: Presiaen4 Date: / ' 7- 9`� Date: 11 - 29-98 0 0 0 cv APPROVED AS TO FORM: BY*RGUR LUBOVICH, City Attorrx9 ATTESTED: By zt J. c� BRENDA JACOBE ity Clerk 110 STATE OF WASHINGTON ) ) ss. COUNTY OF K I N G ) I I I certify that I know or have satisfactory evidence that) (Iq �� //�i is the person who appeared before me, and said person acknowledged that he/she signed this instrument, on oath stated that he/she was authorized to execute the instrument, and acknowledged it as the of the City of Kent to be the free and voluntary act of such City for the uses and purposes mentioned in the instrument. WITNESSETH MY HAND AND SEAL this_-,7 day o v�cc�ezh _ - , I 8M •,,•NNgNI IIN 11 lllll,'/ NO RY PUBLIC in /aqd for the State of f Washington, residing G/� My commission expires •— NAS • CV •rrNNN•,p�• G STATE OF WASHINGTON ) Sn o M ) s s. COUNTY OF ) 1 certify that I know or have satisfactory evidence that bxl -Dwe- is the person who appeared before me, and said person acknowledged that he/she signed this o instrument, on oath stated that brZshe was authorized to execute the instrument, and acknowledged it as the e54dt t of the Partnershin/CoMoration to be the free and voluntary act of such Partnership/Corporation for the uses and purposes mentioned in the instrument. WITNESSETH MY HAND AND SEAL this 31" day of IkL,% btr- , 1998. MILS o NOTARY pm: I�� NOTARY PUBLIC in a94 f r the State of u Washington, residing at S PUF3U� ? My commission expires / /5/0A . vv An [[.es\0352uena use esrz aoc�l ST•. B, } 5-p`I;•'p'� e OF WASH _ 110 Legal Description The south 344.00 feet of the north 374.00 feet of the east 444.16 feet of the west 408.00 feet of the following described property: That portion of Section 23, Township 22, Range 4 East, W.M., in King County, Washington, described as follows: Beginning at the northeast corner of said section, thence west along the north line of said section 2001.9 feet, thence south along the east boundary of the Frances Stewart Crawford property, King County recording #629612, a distance of 1359.7 feet, 4 thence west parallel with the north line of said section to a point which lies 42 feet east of the center line of the Russell Road; I thence northwesterly and parallel with said center line to the north line of said C=' section, thence east along the north line of said section to the true point of beginning. co G O c' N EXHIBIT A 110 aovm m a.aau . M a 4 O 99 q YY 8 NO= 9 ca a o PROJECT SITE is g g c 0 cv � �.m amr xo Cevcxnc aevr --0 mm.a Q mmamin rw< nsm wo r � au ar \o R 3 e� � t� � our avm aaae a� aan oaaimm A.o uora a umr e VICINPIY MAP 14t A YW KENT VALLEY ICE ARENA EXHIBIT B i Ito M N O O � �6 cn 7 O pp p 909 CQ 9 N Y p a a \\ EXHIBITz� 7 i; ���33�i'���46b�5iRg0gp°pgRRgggg7�� - Ito v1°t•r ° r Pi'µl'I'�'11'1'� ° r '�i"'•i'e ' .R' O 9 ��ll�p�p 11 Ci IJ � r� er •�� Ih � r 7 rp I i ' �l x � C. Sp +,c nn lag ly °it tx� N g� r° .Nr r Pryp r�^ a P EXHIBITS 3 - e I o i (' _ 1. % i� d ` a` EXHIBIT B �i� 110 Roger A.6uborieb,City Attorney - 253B59-3340 253/859-3983(fax) August 6, 1998 m Urban Landmark Corporation_ 19803 -68'Avenue West cv Lynnwood WA 98036 0 0 Q' MEMORANDUM OF AGREEMENT FOR COMMITMENT TO CONTRACT FOR ICE ARENA FACILITIES This Memorandum of Agreement between URBAN LANDMARK CORPORATION o C'ULC'� and the CITY OF KENT ("City') serves as the parties'.intent to contract for the o construction, maintenance, and operation of an ice arena by ULC on soccer fields situated on approximately 4.5 acres on City parklands commonly known as the Russell Road Soccer Fields. This commitment is based on ULC's proposal to build,operate,and maintain an ice arena facility as set forth in its June 12, 1998 proposal,attached as Exhibit A. A. The proposal consists of the following: 1. The City will lease to ULC the land upon which the facility would be situated for forty years at$1 per year. 2. Upon completion of the lease term,all facilities located on the premises will revert to the City. 3. ULC will pay a leasehold tax on the land in lieu of real estate taxes based on the fair- market value of the property. 4. An agreement will be negotiated regarding shared parking of the existing parking oa the site for use with the ice arena and the existing softball fields. 5. ULC will obtain liability and fire insurance on the facilities which will name the City as an insured. 6. ULC will consult with the city's Director or Parks and Recreation during all phases of design and construction of the facility to ensure an aesthethicly pleasing and quality designed and constructed facility on its park land. - EXHIBIT Ci 110 August 6, 1998 Page 2 7. ULC will provide the City with use of the facility and its programs for organized city uses. City will have use of the facility September 1 through April 30,weekdays only and not holidays,of any given year from 9:30 am to 11:30 am. Use of the facility will be no charge including professional instruction however equipment(ie skates) will be charged to the user. Any changes in these use times and dates must be agreed upon in writing by both parties. City use programs will not include public open skate. Cl) B. It is acknowledged that this commitment by the parties is subject to the following conditions: cv 0 1: Ground soils test and approval of results by ULC. City will provide access to the property at times mutually agreed upon to minimize disruption to the park. rn 2. ULC's ability to obtain a conditional use permit for the facility and approval of environmental review conditions. 3. ULC's approval of a surface drainage plan for the facility. 0 c� 4. The City's review and approval of the financial statements and approval of the financial condition of ULC by the city's Finance Director and Director of Parks and Recreation to determine the ability of ULC to construct,manage,and maintain such a facility. 5. Successful negotiation,execution,and approval by the Mayor and City Attorney of the lease and related documents to implement the project as set forth in the proposal and this letter. CITY OF KENT: URBAN LANDMARK CORPORATION By: By: �— TE,Mayor Name: I ox i cn er Date:�L� �� Date: &W.S - a . 1998 EX z 110 LYNNWOOD'S SNO-KING ICE ARENA, INC. 0. 0 „ 19803 68th Ave. W. °—. o o.0. Lynnwood, WA 98036 SNO-KIl16 (206) 775-7512 'fit Friday,June 12, 1998 Mr.John M. Hodgson, Director, Parks&Recreation City of Kent 220 4d'Avenue South Kent,WA 98032-5895 c� CZ; a 0 `" RE: Kent Ice Arena. Enclosed please find a proposal to design, build and operate an ice arena on the Russel Road soccer fields in Kent. If you have any questions, pl;aleel free to call me at(425)355 8308. Siy, Lexi Doner President Jbfld 110 PROPOSED KENT PARK ICE ARENA Lynnwood's Sno-King Ice Arena, Inc.is pleased to present the following for your consideration:We propose to design,build,and operate a full service ice arena on the land commonly known as the Russel Road soccer fields. (Approximately 5 acres of Kent paddand.) If acceptable,the ice arena would be constructed as a first-class,stateof--the- art facility,with all related amenities in-house. It would be our intent to design,construct, and operate,a single sheet ice arena facility with total construction costs estimated between$3,500,000.00 and$4,000,000.00. cv ICE ARENA DESIGN 0 0 rn The design of the ice arena will depend upon the natural surroundings of the site. However, every effort will be made to create a final design that will be in harmony with the parks other facilities. In addition, great care will be taken to add significant trees and o landscaping to the site whenever possible. It will be our intent to construct a first-class N facility with all related amenities in-house. We will utilize a steel frame building, exterior walls of tiR-up concrete and split face masonry block, and a entrance featuring glass curtainwall. The design will be based on a pair of ice rinks adjacent to a two-story amenity core. The project would be constructed in two phases, with the second phase contingent upon increased demand. Phase 1: The main arena will feature a National Hockey League (NHL) regulation sized (200 feet by 85 feet) skating rink with seating for at least 1200 spectators (appx. 30,000 square feet). The arena will be adjacent to a two story amenity core containing skaters' lobby, restaurant1snac k bar, pro shop, dressing rooms, referee rooms, offices, concessions, and miscellaneous ancillary space (appx 15,000 square feet). The facility will be made available to the general public for open skating sessions, hockey and figure skating. All amenities and refrigeration will be designed so as to accommodate expansion should demand necessitate a second skating rink. We estimate the cost to complete phase 1 of the facility to be between$3,500,000.00 to$4,000,000.00. Phase 2: If demonstrated demand exceeds capacity for the single sheet arena, then a second skating rink will be added adjacent which will share the aforementioned amenity core and mechanical rooms. The second NHL ice sheet will be designed to supplement the main arena and will provide only minimal seating. if constructed, the 22,000 square foot addition would increase the total cast by approximately $2,500,000.00 bringing the overall cost to$6,000,000.00 to$8,500,000.00 for the two-sheet facility. 110 BENEFITS TO KENT: 1.) FULL SERVICE ICE ARENA IN COMMUNITY. Due to high costs associated with developing public ice arenas,few communities can afford to provide ice skating for their citizens. Through this cooperative agreement, Kent would become only the third community to have a public ice arena in the greater Seattle area,and the fast to get a new public ice arena in over 21 years. 2.) NO COST. Other than providing the land according to the terms of the land lease below, Kent would incur no costs associated with building and operating the new arena. 3.) KENT SCHOOL PROGRAMS. m As additional consideration we will make available a Kent School program whereby schools may elect to bring students to the ice arena on weekdays for ice-skating and o Instruction. The ice arena will be available between 9:00 AM. and 11:00 A.M. during every school day for the use of Kent Schools. These times, if purchased Q' independently,would cost approximately$100,000.00 for each school year. The only cost to Kent Schools would be for the rental of ice skates (if needed). No Ice rental, admission fee or group instruction fee will be charged during these sessions. 0 4.) EXPERIENCED OPERATORIESTABLISHED PROGRAMS. 0 cv . Lynnwood's Sno-King Ice Arena has been serving the needs of the community for over 20 years. Current ownership has operated the facility since late 1989. As such, we are experienced in ice arena operations and have a multitude of diverse programs that can be immediately implemented in Kent. Learn to Skate School, Family rates, Cheapskate sessions, Christian Skate night, Skate for DAR.E., Teen night, youth hockey, adult hockey, learn to play hockey dinics, figure skating, competitions, and birthday party packages represent a few of the programs which can be organized in the new arena. Further, as an experienced operator, we know the financial aspects of the ice arena business. When current ownership purchased Lynnwood's Sno-King Ice Arena,Inc.in 1989,the corporation was in chapter 11 reorganization. By 1990,we had successfully reorganized the business paying all creditors in full together with 10% interest from their original invoice due date. For our efforts we were awarded the Small Business Award in 1993 from the South Snohomish County Chamber of Commerce. 5.) IMMEDIATE DEVELOPMENT. Lynnwood's Sno-King Ice Arena,Inc.is actively looking for properly upon which to construct a new facility. We have already completed appraisals and preliminary financing Information. We are ready, willing and able to begin development immediately with a targeted opening date In the fall of 1999. 110 6.) 2530 NEW JOBS IN COMMUNITY. The ice arena would bring 25 to 30 new Jobs to the community on a year around basis. 7.) CLEAN,HEALTHY FAMILY ACTIVITY. Ice-skating is a clean, healthy family activity that would fit nicely with the existing sports fields in the park. 8.) OPERATOR COMMITTED TO COMMUNITY INVOLVEMENT. As a community oriented business we recognize our responsibility to support other interest groups in the area. As such, it is our policy to accommodate donation requests whenever possible. At Lynnwood's Sno-KGng Ice Arena we receive and process hundreds of donation requests each year. Attached Is a list of some of the m organizations that have requested and received donations in the recent past A derwood Boys&Girls Club o Alderwood Cooperative Preschool o Alderwood Rotary Club rn Arbor Heights Elementary School Raffle Arts Council of Snohomish County Bethany Christian Assembly Carenet Auction c, Cherry Valley Elementary Children's Hospital Guild Association c Civic Light Opera o Curiosity Comer Preschool Eastside Domestic Violence Program Eaton School Endeavor Elementary Friends of Youth Grace Academy Hazelwood Elementary School PTSA Heritage Christian School Holy Rosary Community Auction Lynnwood High School Lynnwood Meadowdale Cooperative Preschool Madrona School Maplewood K-6 School Meridian Park School Montlake School Auction North Seattle Christian School Northshore PTA Council Reorganized Church of Jesus Christ of Latter Day Saints Rivers Council of Washington Seattle Men's Chorus Auction Serene Lake Elementary Shoreline Rotary Club Auction Spruce Primary School St Catherine School St Luke Parish Center St Mary Magdalen School Temple De Hirsch Sinai The Jewish Day School The League for the Deaf and Hard of Hearing The Northwest School a Valley View Middle School Virginia Mason-Sweet Charily Auction Washington DeMolay Foundation Washington Recreation&Park Association Westgate Chapel Woodside Elementary LAND LEASE TERMS In consideration of the aforementioned improvements we would request a 40 year land lease for the sum of One Dollar($1.00)per year. In the event a second ice sheet Is constructed we would request that the term be re-negotiated to Insure adequate time to recoup our additional Investment. Because drainage and soil conditions are C, of critical Importance to an Ice arena,we would request that the final Agreement be contingent upon a soil Inspection. We would request the right to share the park's `" adjacent parking facilities (the Ice arena Is a heavy winter use and would o compliment the predominately summer demand in the park). Finally, as power o costs are crucial to the ongoing operation, we would like the opportunity to rn purchase power from the City (assuming the City rates are significantly less than normal commercial rates.)through the lease document 0 0 0 0 N