HomeMy WebLinkAboutL012-09 - Extension - Alecta Real Estate Kent Valley, LLC - Parking & Storage - 10/01/2006 CITY CLERK
CITY OF KENT
220 411 Avenue South
KENT Kent, WA 98032
WASHIHGTOM
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: L012-09-2
1. Responsible Department/Division: Public Works
2. Contact Person and Title: Kevin Swinford
Telephone Extension: 5613
3. Tenant (Customer) Name: CB Richard Ellis Inc (previously Investco Realty
Advisors, Inc)
4. Tenant (Customer) Number: 150103
Lease Agreement Cover Sheet—Page 1 of 4
5. General Ledger Account Number: 44005590.56290
6. King County Tax Parcel Number: 000620-0018 (partial) r
7. Address of Parcel: South 222"d Street Block and 68th Avenue South, Kent
8. Type of Lease: Lease Extension - Commercial Property Rental (Investco Parking
and Storage)
9. Council Authorization Date: N/A
10. Mayor Signature Date: November 27, 2006
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, 2006
12. Tenant Lease Option Renewal Notification Due Date: N/A
13. Lease Termination Date: September 30, 2011
14. Lease Duration: October 1, 2006 through September 30, 2011. No remaining
additional option periods
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 Adjusted, 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 4
15. Rent: $4,984.62/year (includes leasehold excise tax)
16. Rent Due Date: October 1
17. Calculation of Rental Increase(s): Annual increase in the CPI with a
maximum of 5% per year. "CPI" means the Consumer Price Index for US City
Average for All Urban Customers
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.
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).
Lease Agreement Cover Sheet—Page 3 of 4
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: 650-18133.02
❑ 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 111/b 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 inadential uses (other uses require prior written approval by the City)
Lease Agreement Cover Sheet—Page 4 of 4
EXTENSION TO LEASE AGREEMENT BETWEEN
THE CITY OF KENT AND ALECTA REAL ESTATE KENT VALLEY, LLC.
THIS LEASE EXTENSION is entered into on the date fully executed below by and
between the CITY OF KENT ("Landlord") and ALECTA REAL ESTATE KENT VALLEY, LLC., a
Delaware limited liability company ("Tenant"), for certain parking and storage located at South
222"d Block and 68th Avenue South, Kent, Washington. This memorializes the extension of that
certain Lease Agreement for Parking and Storage entered into between Landlord and Tenant on
or about the September 25, 2001 (the "Lease").
WHEREAS, pursuant to Section 2 of the Lease the initial term commenced on October 1,
2001, and expired on September 30, 2006. Section 1 provides for one (1) extension term of
five (5) years. Tenant and Landlord desire to extend the term of the Lease for the extension
term, which will run from October 1, 2006, to September 30, 2011;
NOW THEREFORE, the Landlord and Tenant hereby agree and covenant as follows:
1. Lease Term. The term of the Lease extension shall be for a term of five (5)years
and shall commence on October 1, 2006 (the "Commencement Date") and shall end on
September 30, 2011 (the "Termination Date").
2. Section 3 of the Lease shall be amended as follows:
Rent:
Tenant agrees to pay Landlord as Rent, without notice or demand,the sum
of FOUR THOUSAND NINE HUNDRED EIGHTY-FOUR AND SIXTY-TWO/100 DOLLARS
($4,984.62). The Rent shall be paid in advance, on or before the first day of first calendar
month of the new year of the term. Leasehold tax is included in the Rent above. Rent shall be
adjusted annually per Section 2 of the Lease: "The annual rental rate shall be adjusted based
upon the annual increase in the Consumer Price Index (US City Average For All Urban
Consumers) with a maximum annual increase of five (5) per cent"commencing on October let
of each year of the term of this Lease extension.
3. Certification. Tenant hereby certifies to Landlord that the Lease is in full force and
effect and that there are no uncured defaults L.i the part of the Landlord under the Lease.
4. Entire Agreement. Except as amended by this Extension, all provisions of the
Lease shall remain in full force and effect except as specifically modified by this Extension.
IN WITNESS WHEREOF, the parties hereto have executed this Extension, which shall
take effect on the last date signed below.
LANDLORD: TENANT:
CITY OF KENT ALECTA REAL ESTATE KE ALLEY, LLC.
By: By:
Print Na el , uz Print Name: MrC9ae tf.. V
Its! Its: c.r'
Dat - V Date:
(Notary Acknowledgments Appear on Next Page)
EXTENSION TO LEASE AGREEMENT BETWEEN
CITY OF KENT AND ALECTA REAL ESTATE KENT VALLEY, LLC.-Page 1 (October 19, 2006)
STATE OF WASHINGTON }
ss.
COUNTY OF KING )
I hereby certify th4ckndged
bay 2006, I know or have
satisfactory evidence that Is the person who appeared
efore me,and said person that he/s le signed this instrument, on oath stated that
e she Is authorized to execute the instrument on behalf of the CITY OF KENT as its
and such execution to be the free and voluntary act of such party for the
uses and pur ses mentioned In the foregoing Instrument.
-Notary Seal Must Appear Within This Box-
IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day
and yei r b stu
Z e written.
i
NOTARY PUBLIC,
and for the State of Washington
-,•9rA 1b)9.0% 41 residing at
0" , , �� My appointment/expires —i -D
STATE OF WA&KPJGTGN- )
: ss.
COUNTY OF KIN U5 ) ,
I hereby certify that on the Till day of {�01/w ber , 2006, 1 know or have
satisfactory evidence that Vh t _ Is the person who appeared before
me,and said person acknowledged that he/s signed this Instrument, on oath stated that he/she
Is authorized to execute the Instrument, on behalf of ALECTA REAL ESTATE KENT VALLEY,
LLC., a Delaware limited liability compny,as Its V I U f re'?I r'-t-f , 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 This Box-
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EXTENSION TO LEASE AGREEMENT BETWEEN
CITY OF KENT AND ALECTA REAL ESTATE KENT VALLEY, LLC.-Page 2 (October 19, 2006)