HomeMy WebLinkAboutL018-09 - Other - Public Golf Management, Inc. - Addendum #1 - Riverbend Clubhouse - 01/29/2002 CITY CLERK
CITY OF KENT
"Avenue South
KENT 220 4Kent, WA 8032
WASHING-ON
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 1st of the month or
year. Those agreements and amendments will be addressed through subsequent
agreements and/or amendments, if any.
Contract Number: L018-09-2
1. Responsible Department/Division: Parks/Admin
2. Contact Person and Title: Jeff Watling
Telephone Extension: 5007
3. Tenant (Customer) Name: Public Golf Management, Inc
4. Tenant (Customer) Number: N/A - Pre JDE Accounts Receivable
Lease Agreement Cover Sheet—Page 1 of 5
5. General Ledger Account Number: 48006855.56250
6. King County Tax Parcel Number: 232204-9010 (partial)
7. Address of Parcel: 2019 West Meeker Street, Kent
8. Type of Lease: Addendum One - Commercial Building Rental
9. Council Authorization Date: January 15, 2002
10, Mayor Signature Date: January 29, 2002
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: March 1, 2000
12. Tenant Lease Option Renewal Notification Due Date: 180 days prior to
expiration of term
13. Lease Termination Date: February 28, 2006
14. Lease Duration: March 1, 2000 through February 28, 2006. One additional six
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 period
1982-84=100, Not Seasonally Adwsted, 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
with the use of the conversion formula published by the U.S. Bureau of
Labor Statistics.
Lease Agreement Cover Sheet-Page 2 of 5
15. Rent: Greater of $12.00 per square foot of leased space ($5,000.00) or 5% of
gross revenue/month (plus leasehold excise tax)
16. Rent Due Date: loth of the following month, e.g. January rent due February 10
17. Calculation of Rental Increase(s): N/A - Rent calculated based on stated
percentage of gross revenue subject to a $5,000.00 per month minimum (plus
leasehold excise tax)
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/Lease hold.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.
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
Lease Agreement Cover Sheet-Page 3 of 5
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: 805-12167.01 (75% paid to City)
® Sewer: 805-12167.01 (75% paid to City)
® Drainage: 805-12167.01 (75% paid to City)
❑ Garbage: Waste Management (Facility not subject to these charges)
® Electricity/Natural Gas: Puget Sound Energy (75% paid to City)
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: 5% of the payment due and unpaid if not received by the
City within 10 days of the due date (10th of the month)
23. Late Interest: 1% on the amount outstanding if not paid by the 1st day of the
month following the due date for payment (approximately 20 days late)
SECTION 7 — OTHER LEASE CONSIDERATIONS:
1. Tenant is required to provide a signed written statement detailing monthly gross
and net receipts signed by the tenant by the 10th of the following month, e.g. January
rent due February 10 (Section 4).
2. Section 4 requires payment of leasehold excise tax on the 15th of the month
following the end of each quarter (RCW 82.29A.050 requires payment at the same
time as collection of the related rent, i.e. monthly basis for this lease.
Lease Agreement Cover Sheet—Page 4 of 5
3. Tenant is required to pay the City for telecommunication service provided to the
Fire Creek Grill (Section 10).
4. Addendum One deletes Exhibit B Riverbend Retail Merchandise from the Lease
Agreement and authorizes usage of City personnel for janitorial services in lieu of
usage of a private contractor.
Lease Agreement Cover Sheet—Page 5 of 5
ADDENDUM ONE TO LEASE AGREEMENT
THIS ADDENDUM ONE between THE CITY OF KENT ("City") and
PUBLIC GOLF MANAGEMENT, INC., a Washington corporation, ("Lessee")
amends that certain Lease Agreement entered into between City and Lessee on or about
the, day of , (the"Lease").
WITNESSETH:
WHEREAS, City and Lessee entered into that certain Lease Agreement, dated
!T 2 , ("Lease") wherein the Lessee agreed to lease certain property
owned by the City located at the City of Kent Riverbend Golf Complex ("Premises"); and
WHEREAS, City and Lessee express their mutual intent and desire to amend the
Lease;
NOW THEREFORE,in consideration of the mutual intent, desire and promises of
the parties hereto and other good and valuable consideration, City and Lessee agree as
follows:
1. Section 2 of the Lease, entitled "Use of Premises," is hereby amended to
read as follows:
SECTION 2. USE OF PREMISES.
The Lessee shall occupy, manage and operate the Premises as a lounge
and restaurant facility and shall also be entitled to access to and use of the
hallways and restrooms within the clubhouse for the benefit of its customers and
employees. The City further grants the Lessee a concession to sell food and
beverage from concession carts and from golf course barbecues on the 18-hole
golf course and shall have the right to access to those facilities to operate vending
machines, carts and other means of selling food and beverage, provided that the
Lessee's operation does not interfere with regular operation of the golf course.
Lessee shall have the right to sell a limited selection and amount of promotional
merchandise and apparel on the premises related to Lessee's food and beverage
business, unless otherwise agreement. Exhibit"B"to the Lease is hereby deleted.
ADDENDUM ONE TO LEASE AGREEMENT- 1 (January 29,2002)
(between Cary of Kent and Public Go#Management,Inc)
a
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2. Section 6(A) of the Lease, entitled "Lessee's Operational Obligations," is
hereby amended to read as follows:
SECTION 6. LESSEE'S OPERATIONAL OBLIGATIONS.
Lessee shall perform the following tasks:
A. Provide janitorial service for the clubhouse common areas,
including restrooms, golf pro office and golf course manager, the lounge,
restaurant, marketing office, kitchen, patio areas, dumpster area, and other
premises facilities under Lessee's control pursuant to this Lease. City shall
reimburse Lessee 20% of the cost of janitorial services, subject to the City's
approval of the janitorial services contract. Lessee shall provide City with a
monthly statement for these services. The City may provide these janitorial
services in whole or in part upon mutual agreement of the parties in which case,
the compensation shall be modified accordingly.
4. Entire Agreement. Except as amended by this Addendum, all provisions
of the Lease shall remain in full force and effect except as specifically modified by this
Addendum One.
IN WITNESS WHEREOF, the parties hereto have executed this Addendum
Two,which shall take effect on the last date signed below.
CITY: LESSEE:
CITY OF KENT PUBLIC GOLF MANAGEMENT, INC.
By: ( (cam. C Bantame:
Print Name: T/04 c.1-r4;R I P
Its: AAIOK. Nti0 Ito& Its: TtC-C Vr;>�G-JT
Date: ! 2 9 - o Z— Date: 020
J o Z
ADDENDUM ONE TO LEASE AGREEMENT-2 (January 29,2002)
(between Crry of Kent and Pubkc Golf Management,Inc)
,
STATE OF WASHINGTON )
ss.
COUNTY OF KING )
I hereby certify that on the Zq day of JWUANY , 2002, I know or have
satisfactory evidence that -nm G4S" is the person who appeared
before me,and said person acknowledged that he/she signed this instnument, on oath stated that
he/she is authorized to execute the instrument on behalf of the City of Kent as its
M OL M 'A , and such execution to be the free and voluntary act of such party for the
uses and purposes mentioned in the foregoing instrument.
-Notary Seal Must Appear Within Ms Box-
EREOF, I have hereunto set my hand and official seal the day
and UNW,
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pu" -ram L .
"1��,�b••_ NOTARY PUBLIC,in and for the State
of Washington,residing at OftigW*.
My appointment expires 12-ZA-OS
STATE OF WASHINGTON )
: ss.
COUNTY OF KING )
I hereby certify thaton ay P 2002, I know or have
satisfactory evidence th 0. is the son who appeared before
me,and said person ac ow ged that he/she sign this instnune , on oath stated that he/she
thorized to xecute the instrument on behalf of Public Golf Management, Inc. as its
, and such execution to be the free and voluntary act of
such party for the uses and purposes mentioned in the foregoing instrument.
-Notary Seal Must Appear Within Thu Box-
_iAl`it4RZ(�SS WHEREOF, I have hereunto set my hand and official seal the day
and *sritten.
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:. puel_lc cam.
l��sj•• 9 ' NOTARY PUBLIC,in and the State
•......' = of Washington,residing at V
My appointment expires —
V`CmIFlLL'8'OpmRI,lOIOV oMxOOlptyLLlae-ApbtlwOee.J¢
ADDENDUM ONE TO LEASE AGREEMENT-3 (January 29,2002)
(between City of Kent and Public Golf Management,Inc)