HomeMy WebLinkAboutL012-09 - Original - SPP Real Estate (Kent Valley), Inc. - Parking & Storage - 10/01/2001 CITY CLERK
CITY OF KENT
220 41' Avenue South
K E NOT Kent, WA 98032
WASHINGTON
Fax 253-856-6725
PHONE: 253-856-5725
Lease Agreement Cover Sheet
Instructions
This document is to be used In lieu of the Contract Cover Sheet
SECTION 1 — CONTRACT PROCESSING AND TENANT SET-UP:
All lease agreements must be signed by the Mayor or his/her designee and approved
by the City Council. Lease amendments, extensions, renewals, and assignments may
or may not require Council approval (contact the Law Department), but they must be
signed by the Mayor.
The City Clerk's Office will perform the following tasks associated with all lease
agreements and amendments:
• Assign a sequential lease agreement number based on starting with 001 and
preceded with "L", e.g. L001.
• Scan the Lease Agreement Cover Sheet, Lease Agreement (or Amendment) and,
if any, related supporting documentation into the document imaging system.
• Provide notification via e-mail to the Contact Person (Question 2), Law and
Customer Services.
The Lease Agreement Cover Sheet is to be completed for each existing and active and
all subsequent lease agreements, lease amendments and assignments of lease. There
is recognition that certain existing and active agreements and amendments may not
incorporate new policies, e.g. commencement of the lease on the Vt of the month or
year. Those agreements and amendments will be addressed through subsequent
agreements and/or amendments, if any.
Contract Number: L012-09
1. Responsible Department/Division: Public Works
2. Contact Person and Title: Kevin Swinford
Telephone Extension: 5613
3. Tenant (Customer) Name: Investco Realty Advisors, Inc
4. Tenant (Customer) Number: 57975
Lease Agreement Cover Sheet—Page 1 of 4
5. General Ledger Account Number: 44005590.56290
6. King County Tax Parcel Number: 000620-0018 (partial)
7. Address of Parcel: South 222"d Street Block and 68t" Avenue South, Kent
8. Type of Lease: Lease Agreement - Commercial Property Rental (Investco
Parking and Storage)
9. Council Authorization Date: September 18, 2001
10. Mayor Signature Date: September 25, 2001
SECTION 2 - LEASE DURATION AND IMPORTANT DATES:
All lease agreements and amendments must reflect the lease start date, lease
termination date and the duration of the lease. The lease agreement may also
authorize the tenant to request an extension of the lease term, i.e. either "month to
month" or for a defined period of time. The tenant must provide advanced written
notice of the intent to exercise this lease option.
A date certain lease start date must be established in the lease agreement and must
be the first of the month. Commencement of certain leases may be predicated on
certain actions by the tenant, e.g. installation of cellular tower equipment. In such
instances, a reasonable fixed future date must be established in the lease agreement.
11. Lease Start Date: October 1, 2001
12. Tenant Lease Option Renewal Notification Due Date: 60 days expiration of
current term
13. Lease Termination Date: September 30, 2006
14. Lease Duration: October 1, 2001 through September 30, 2006. One additional
five year option period
SECTION 3 - RENT DETERMINATION AND DUE DATE:
Lease agreement must include provisions establishing the stated rent and, if over one
year in length, modification of stated rent. Typically, rental increases are based on
changes in the Consumer Price Index. Example of possible contract language:
Effective as of each anniversary of the Commencement date (the
"Adjustment Date") by an amount equal to the greater of four (4) percent
or the percentage increase in the CPI two (2) months prior to the
Adjustment Date and the CPI for the month 12 months prior to the
Adjustment Date. "CPI" means the Consumer Price Index - All Urban
Consumers, (Seattle-Tacoma-Bremerton, WA), All Items, base penod
1982-84=100, Not Seasonally Ad)usted, issued by the U.S. Bureau of Labor
Statistics. If the CPI is converted to a different standard reference base, or
otherwise revised, the adjustment set forth in this paragraph shall be made
Lease Agreement Cover Sheet-Page 2 of 4
S
with the use of the conversion formula published by the U.S. Bureau of
Labor Statistics.
15. Rent: Includes Leasehold Excise Tax: $4,253.00/year (October 1, 2001 through
September 30, 2002), $4,380.00/year (October 1, 2002 through September 30,
2003), $4,511.00/year (October 1, 2003 through September 30, 2004),
$4,647.00/year (October 1, 2004 through September 30, 2005), and
$4,786.00/year (October 1, 2005 through September 30, 2006)
16. Rent Due Date: October 1
17. Calculation of Rental Increase(s): Revised annual rent as stated in the Lease
Agreement
SECTION 4 — LEASEHOLD EXCISE TAX:
Leasehold excise tax applies to the possession and use of publicly owned real property
by a private sector individual, business or other organization. This tax is calculated
based on 12.84 percent of the contract rent amount. See also Department of
Revenue Leasehold Excise Tax Frequently Asked Questions and Answers
(http://dor.wa.gov/docs/Pubs/IndustSpecific/Leasehold.pdf). Contact the Customer
Services Financial Analyst (LIDS/Receivables) or the Audit Manager regarding
questions in this area.
18. Is this lease subject to leasehold excise taxes?
® YES (go to Question 19)
❑ NO, reason:
19. Are leasehold excise taxes for this tenant centrally assessed, i.e. directly
collected from the tenant by the Washington State Department of
Revenue?
❑ YES (attach written verification received directly from DOR or indirectly
through the tenant, e.g. DOR notification letter)
® NO (go to Question 20)
20. Does Lease Rent include Leasehold Excise Tax?
(Leasehold taxes must be broken out on the invoice and coded: Business
unit.32500.0303)
® YES Calculate the leasehold excise tax (Stated Rent divided by 1.1284)
❑ NO Calculate the leasehold excise tax (Stated Rent times .1284)
SECTION 5 — APPLICABLITY OF UTLITIES:
The Lease agreement must include provisions establishing responsibility for payment
of utilities, including but not limited to electricity, natural gas, water, sewer, storm
drainage, and garbage collection and disposal services.
Lease Agreement Cover Sheet—Page 3 of 4
In certain instances, the utility service may not be applicable, e.g. septic system, or
may not be provided by the City, e.g. Highline Water District service area. In all
instances, City utilities will be billed through the Customer Services utility billing
system. Other utilities paid by the City on behalf of the tenant, e.g. electricity or
natural gas, will be invoiced to the tenant through the central accounts receivable
system (JD Edwards).
Electricity or natural gas charges may be established based on actual consumption,
e.g. usage of a meter or by a reasonable amount established through appropriate
financial analysis. Separate meters for measurement should not be established on
City-owned or leased properties. The dollar amount of electric and natural gas
charges must be included in the lease agreement (amendment) and should be subject
to future modification based on appropriate methodologies, e.g. change in rate, etc.
Contact Finance Customer Services for questions in this area, as well as ensuring that
City accounts are transferred into the name of the tenant.
21. Applicability of Utilities — Check all that utilities that are affected and
indicate provider (e.g. City of Kent), Account Number or basis of
exclusion.
❑ Does Not Apply
❑ Water: No services
❑ Sewer: No services
® Drainage: 650-18133.01
❑ Garbage: No services
® Electricity/Natural Gas: Puget Sound Energy
Ensure that Finance Customer Services is properly notified to ensure City utility
account, if any, is recorded into the name of the tenant if so established in the
Agreement. Ensure all other applicable charges are properly invoiced to the tenant.
SECTION 6 — MONETARY PENALTIES AND LATE INTEREST CHARGES:
Lease agreement should contain provisions establishing penalties and must contain
provisions establishing late interest charges. Late interest (also referred to as
"finance charges") should be consistent with Chapter 3.10 of the Kent City Code, i.e.
currently 1% of the amount of the unpaid balance or $2.00, whichever is greater, if
not paid within 30 days from the due date.
22. Monetary Penalties: None
23. Late Interest: None
SECTION 7 — OTHER LEASE CONSIDERATIONS:
Usage of Premises limited to vehicular parking area, a telephone equipment storage
yard and other incidential uses (other uses require prior written approval by the City)
Lease Agreement Cover Sheet—Page 4 of 4
LEASE AGREEMENT
FOR PARKING AND STORAGE AREA
(AT SO. 222"n BLOCK AND 68T" AVE. SO.)
THIS LEASE AGREEMENT, dated this / 7 )k day of 2001 is
between the CITY OF KENT, a Washington municipal corporati "Lessor" and i1�SP�2P Real
Estate (Kent Valley) Inc.; a Delaware corporation ("Lessee") E 0 a lVJ E t 1
S r P 2 7 °1+01 UD
RECITALS
CITY OF KKEENT
A Lessor is the owner of certain real property generally located('(a 4'R, i �i 222nd
Block and 681h Ave South 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,
2001, 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, 2006 to September 30,
2011 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 fi�e
(5%) percent, commencing on October 1, 2006 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% tax
10-01-01 —09-01-02 $4,253.00
10-01-02 — 09-01-03 $4,380.00
10-01-03 —09-01-04 $4,511.00
10-01-04— 09-01-05 $4,647.00
10-01-05 —09-01-06 $4,786.00
"NOTE" All payments shall be mailed to City of Kent Finance, Customer Services Department C
220 4`h Avenue South, Kent, WA 98032, ATTN Customer Services Manager
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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 trait, approximately twelve (12) feet in width, adjacent to and north of the Premises,
extending from the West Valley Highway on the east, westerly to 641h 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 ansing 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. 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.
6. 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
7. 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 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
8. 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
9. 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 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 Prem+,ees to its
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original condition within ninety (90) days of the expiration or termination date, at Lessee's sole cost
and expense
10. 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
11. Liens and Insolvency. Lessee shall keep the Premises free from any liens ansmg 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
12. Access. Lessor shall have the right to enter the Premises at all reasonable times for
the purpose of inspection
13. 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 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
14. 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 r alleged to be suffered in or about the Premises by any
person, firm or corporation, but only to the extent of Lessee's negligence
15. 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 ansmg 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 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
16. 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 termmate this Lease Agreement
and reenter the Premises Lessee shall pay Lessor any deficiency ansmg from its default, including
any rent owed, the cost of recovering the Premises and any repairs, maintenance, or utilities
attributable to Lessee
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17. Costs and Attorney's 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
18. No Wavier of Covenants. The failure of the City to insist up on 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
19. 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
20. 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 the Lessor
21. 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, ansmg
from the claim of any real estate broker or agent with whom either may have dealt with respect to
this transaction.
22. 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
23. 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 provided, however, assignee
complies with paragraph 15 "NOTE" Assignment will not be valid without said compliance
24. 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
25. 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:
Public Works Director Invesco Realty Advisors Inc
City of Kent One Lincoln Centre, Suite 700
220 4`h Ave South 5400 LBJ Freeway/LB2
Kent, WA 98032-5895 Dallas, TX 75240
Attn B Todd Marney
972-715-7400
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26. 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
27. 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
LESSEE LESSOR
SPP Real Estate (Kent Valley) Inc a Delaware Corp CITY OF KENT
By By
c Kir ITE, ayor
Vice President
DAT y /7. d! DATE
Currently Billing Address ATTE
SPP Real Estate (Kent Valley), Inc
CIO CB Richard Ellis, Inc. By ?JAL
22118 201h Avenue SE, Suite 138 JERRY cC UGHA�I
Bothell, WA 98021 PROPE TY MANNA/GER
DATE
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E��ftiQlT ,9
DE$CRIPTCON
COMMENCING AT THE INTERSECTION OF THE SOUTH LINE OF THE NORTH 3I9 FEET OF THE
SOUTH LLALF OF TILE SOUTHEAST QUARTER, OF TILE SOUTHEAST QUARTER OF SECTION II .
TOWNSHIP 22 NORTH, RANGE 4 EAST W.N. WICII THE EAST QUARTER SECTION LINE OF
SAID SECTION 11. THENCE NORTH 89012117" WEST ALONG IHE 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 89'12117" 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.
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