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HomeMy WebLinkAboutCAG1996-0435 - Original - South Valley Associates - Lease Agreement for Parking & Storage Area - 10/01/1996 LEASE AGREEMENT FOR PARKING AND STORAGE AREA THIS LEASE AGREEMENT is between the CITY OF KENT, a Washington municipal corporation ("Lessor"), and SOUTH VALLEY ASSOCIATES, a Washington limited partnership ("Lessee"). RECITALS A. Lessor is the owner of certain real property generally located at the 224 Block ow we5f Tile �\WO in the City of Kent, King County, Washington. B. Lessee has agreed to rent a portion of Lessor's property, which is legally described in Exhibit A. which is attached and incorporated by this reference (the"Premises"). C. Lessor is willing to lease the Premises to Lessee on following terms and conditions. NOW, THEREFORE, the parties agree as follows: AGREEMENT 1. Lease. Lessor hereby leases to Lessee, and Lessee hereby rents from Lessor, the Premises, upon the terms and conditions set forth in this Lease Agreement. 2. Term. The term of this Lease shall be for five (5) years, commencing on October 1, 1996, the effective date of this Lease Agreement. Lessee shall have one (1) option to renew this Lease for one (1) additional five (5) calendar year period from October 1, 2001 to September 30, 2006. The annual rental rate shall be adjusted based upon the annual increase in the Consumer Price Index (U.S. City Average for all Urban Consumers) with a maximum annual increase of five (5%) percent, commencing on October 1, 2001. Lessee may exercise its option by giving Lessor sixty (60) days written notice, prior to the expiration of this Lease, of its intention to renew the Lease. 3. Rent. Lessee shall pay Lessor, at Lessor's offices, rent according to the schedule listed below, at least thirty (30) days prior to each date due, which rental payment includes a 12.84% leasehold tax: 10-01-96 - 09-30-97 $3,600.00 10-01-97 - 09-30-98 $3,708.00 10-01-98 - 09-30-99 $3,820.00 10-01-99 - 09-30-00 $3,935.00 10-01-00 - 09-30-01 $4,050.00 1 4. Lessor's Obligation to Maintain Public Trail and Lessee's Obligation to Maintain the Parking Area: Indemnification for Same. Lessor shall maintain the public pedestrian trail, approximately twelve(12)feet in width, adjacent to and north of the Premises, extending from the West Valley Highway on the east, westerly to 64th Avenue South, on Lessor's property as shown on Exhibit B. Lessee shall maintain, to standards specified by Lessor, a public parking area north and east of the Premises, on Lessor's property adjacent to West Valley highway, for ten (10) automobiles, as shown on Exhibit B. The parking area shall be maintained at Lessee's sole cost and expense. The pedestrian trail and parking area described in this paragraph are called, collectively, "the Public Improvements." Lessor further agrees to indemnify and hold Lessee harmless from any and all fees, costs, and expenses arising out of or connected with any injury to persons or damage to property associated or connected with any use of the Public Improvements or any adjacent property owned by Lessor, but only to the extent of Lessee's negligence. The parties understand and agree that the Public Improvements shall be open for the use and enjoyment of the public. 5. Short Plat. Intentionally Deleted 6. Utilities and Fees. Lessee shall pay all charges for electricity and any other utility services accruing at the Premises. Lessee shall directly pay these utility charges and all other license fees or other governmental charges levied on the operation of the Lessee's business on the Premises, or the business of Lessee's subtenant. 7. Taxes. Lessor shall pay all applicable taxes, including real property taxes and assessments, whether general or special, levied against the Premises. Should there presently be in effect or should there be enacted during the term of this Lease Agreement any law, statute or ordinance levying any tax (other than federal or state income taxes) upon rents, Lessee shall pay such tax or shall reimburse Lessor on demand for any such taxes paid by Lessor. 8. Use. Lessee and any subtenant of Lessee shall use the Premises solely for the purposes of a vehicular parking area and a telephone equipment storage yard and other incidental uses, but for no other purposes, without the prior written consent of Lessor. In the event Lessee's use of the Premises increases the fire insurance rates on the Premises, Lessee agrees to pay for that increase. ease Initial 2 19. Repairs and Maintenance. Lessee has inspected and accepts the Premises in its present condition. At its sole cost, Lessee shall at all times (1) keep the Premises neat, clean and in a good, orderly and sanitary condition, (2) replace as necessary all landscaped areas, and (3) keep and use the Premises in accordance with applicable laws, ordinances, rules, regulations and requirements of governmental authorities. In addition to, and without limiting, the foregoing, Lessee shall (1) permit no waste, damage or injury to the Premises, (2) keep any and all drain pipes free and open, (3) protect any water, heating, gas and other pipes to prevent freezing or clogging, and, (4) repair all leaks and damage caused by leaks. 10. Improvements to Premises. Lessee and its subtenant(s) shall make no additions, improvements and alterations to the Premises without Lessor's prior written approval, which shall not be unreasonably withheld. 'Such improvements shall not interfere with the Public Improvements. This work shall be done at Lessee's sole cost and expense. In addition, the parties understand and agree that Lessee's use of the Premises must comply with the terms and conditions of that certain Easement between the City of Kent and Puget Sound Power & Light Company, dated December 28, 1987, and recorded under King County Recording No. 8712311349. Upon the expiration or termination of this Lease, Lessee shall, at Lessor's option, remove all Lessee's improvements, together with its equipment, and shall restore the Premises to its original condition within ninety (90) days of the expiration or termination date, at Lessee's sole cost and expense. 11. Condemnation. If a substantial portion of the Premises is taken by any public authority under the power of eminent domain, so as to render the remaining Premises economically untenantable, this Lease Agreement shall terminate as of the time of such taking at the option of either party. If a portion of the Premises is so taken, and neither party elects to terminate this Lease Agreement, or until termination is effective, as the case may be, the rent shall be reduced in direct proportion to the leased property taken. Lessee shall have no claim to any portion of the compensation for the taking or damaging of the land or building. Lessee shall be entitled to negotiate compensation for its own moving costs and its leasehold improvements. 12. Liens and Insolvency. Lessee shall keep the Premises free from any liens arising by reason of work, labor, services or materials performed or supplied to Lessee and shall hold Lessor harmless against the same. Should Lessee become insolvent, bankrupt, or if a receiver, assignee or other liquidating officer is appointed for the business of Lessee, Lessor may cancel this Lease Agreement at its option. 13. Access. Lessor shall have the right to enter the Premises at al I reasonable times for the purpose of inspection. 14. Damage or Destruction. In the event the Premises are rendered untenantable in whole or in part by fire, the elements, or other casualty, Lessee may elect PAGE 3 not to restore or rebuild the Premises and shall notify Lessor, in which event Lessee shall restore the Premises to its original condition and then vacate the Premises and, at that time, this Lease shall be terminated. In the alternative, Lessee shall notify Lessor within fifteen (15) days after such casualty that Lessee will undertake to rebuild or restore the Premises. If Lessee is unable to restore or rebuild the Premises within thirty (30) days, then the Lease may be terminated at Lessee's option by written notice to Lessor. 15. Hold Harmless. Lessee agrees to defend and hold Lessor and its employees, officers, elected officials, and agents harmless from any claim, action and/or judgment for damages to property or injury to persons suffered or alleged to be suffered in or about the Premises by any person, firm or corporation, but only to the extent of Lessee's negligence. 16. Liability Insurance. Lessee shall, at Lessee's sole expense, obtain and keep in force during the term on this Lease Agreement a policy of comprehensive public liability insurance insuring Lessor and Lessee against any liability arising out of the ownership, use, occupancy, or maintenance of the Premises and all appurtenant areas. This insurance shall be in an amount not less than $2,000,000.00 combined Single Limit with respect to injuries to or death of persons, and/or destruction of or damage to property. The limit of this insurance shall not, however, limit the Lessee's liability. Upon request, Lessee shall deliver to Lessor certificates of proof of this insurance. No policy shall be cancelled or reduced without the prior written consent of Lessor. 17. Termination of Lease. If Lessee fails to perform any of the covenants and agreements in this Lease Agreement, and that failure continues for thirty (30) or more days after receiving written notice from Lessor specifying Lessee's failure(s), unless appropriate action has been taken by Lessee in good faith to cure such failure, Lessor may terminate this Lease Agreement and reenter the Premises. Lessee shall pay Lessor any deficiency arising from its default, including any rent owed, the cost of recovering the Premises and any repairs, maintenance, or utilities attributable to Lessee. 18. Costs and Attorneys' Fees. If by reason of any default or breach on the part of either party in the performance of any of the provisions of this Lease Agreement a legal action is instituted, each party shall pay all its own legal costs and attorneys' fees in connection therewith. 19. No Waiver of Covenants. The failure of the City to insist upon strict performance'of any of the covenants and agreements contained herein, or to exercise any option herein conferred in one or more instances shall not be construed to be a waiver or relinquishment of said covenants, agreements or options, and the same shall be and remain in full force and effect. PAGE 4 20. Modification. No waiver, alteration, or modification of any of the provisions of this Lease Agreement shall be binding unless in writing and signed by a duly authorized representative of Lessor and Lessee. 21. Surrender of Premises. Lessee agrees, upon termination of this Lease Agreement, to surrender the Premises peacefully, to leave the Premises neat and clean, and to deliver all keys to the Premises to Lessor. 22. Real Estate Commission. Lessor and Lessee each hereby represent and warrant to the other that they have not dealt with any broker, agent, or finder in connection with the negotiation and execution of this Lease Agreement or the consummation of the transaction contemplated hereby. Lessor and Lessee shall each indemnify, defend, and save the other harmless from and against any loss, cost, damage or expense, including reasonable attorneys' fees, arising from the claim of any real estate broker or agent with whom either may have dealt with respect to this transaction. 23. Signs. Lessee may, at Lessee's sole expense, place external signs on the Premises provided such signs have been approved in advance by Lessor, and provided such signs do not violate any statute or regulations existing during the term of this Lease Agreement. Lessee shall pay the costs of removal of such signs upon termination of the Lease. 24. Assignment and Sublease. Lessee may assign its interest in this Lease Agreement at any time or may sublease all or any portion of the Premises. 25. Binding Upon Heirs, Successors and Assigns. The covenants and agreements of this Lease Agreement shall be binding upon the subtenants, heirs, executors, administrators, successors, and assigns of both parties, except as limited elsewhere in this Lease Agreement. 26. Notices. Any notice to be given by either party to the other shall be delivered either in person or deposited in the United States mail, first class postage prepaid, addressed to the following addresses, or at such other address as either party may designate to the other in writing from time to time. Notice shall be deemed to have been given three (3) days after mailing. Lessor: Lessee: Pubic Works Director South Valley Associates City of Kent 11411 N.E. 124th Street 220 4th Avenue South Kirkland, Washington 98034 Kent, Washington 98032-5895 PAGE 5 27. Authority. The individuals executing this Lease Agreement represent and warrant that each of them is duly authorized to execute and deliver this Lease Agreement, and that this Lease Agreement is binding upon that party in accordance with its terms and conditions. 28. Governing Law. This Agreement shall be construed in all respects under the laws of the State of Washington. EXECUTED as of the date first above written. LESSOR: Approved As to Form: CITY OF KENT By C.. I � By Q� rZx"OGER A. LUBOVICH JIM ITE, Mayor City Attorney ; DAT ATTEST: City Clerk LESSEE: SOUTH VALLEY ASSOCIATES 1 By '�4 " Peter Henning, Manag ng General Partner t� DATE J O hI F pAWESTLEASE.96 NOTE: Mail payments to Property Management Attention: Jerry McCaughan PAGE 6 DEgCRIPTION COMMENCING AT THE INTERSECTION OF THE SOUTH LINE OF THE NORTH 319 FEET OF THE SOUTH HALF OF THE SOUTHEAST QUARTER, OF THE SOUTHEAST QUARTER OF SECTION 1131 TOWNSHIP 22 NORTH, RANGE 4 EAST W.M. WITH THE EAST QUARTER SECTION LINE OF SAID SECTION 11; THENCE NORTH 89012117" WEST ALONG THE SOUTH LINE OF SAID NORTH 319.00 FEET, 50.00 FEET TO THE WEST MARGIN OF WEST VALLEY HIGHWAY, AND THE TRUE POINT OF BEGINNING; THENCE CONTINUING NORTH 89012'17" WEST 700.00 FEET; THENCE NORTH 0°53'41" EAST 75.00 FEET; THENCE SOUTH 89°12'17" EAST 700.00 FEET TO THE WEST MARGIN OF WEST VALLEY HIGHWAY; THENCE ALONG SAID WEST MARGIN PARALLEL TO THE EAST LINE OF THE SOUTHEAST QUARTER OF SAID SECTION 11, SOUTH 0°53'41". WEST 75.00 FEET TO THE TRUE POINT OF BEGINNING. 87042.03 ENG 17