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HomeMy WebLinkAboutPW11-141 - Original - Knudsen Properties LLC - Horseshoe Bend Levee Lease Management - 03/22/2011 Records Ma-rfagement �, KENT Document WASMINGYON .tI" m CONTRACT COVER SHEET This is to be completed by the Contract Manager prior to submission to City Clerks Office. All portions are to be completed. If you have questions, please contact City Clerk's Office. Vendor Name: Knudsen Properties Limited Liability Company Vendor Number: 327572 JD Edwards Number Contract Number: flu) 11- /`// This is assigned by City Clerk's Office Project Name: Horseshoe Bend Levee Description: ❑ Interlocal Agreement ❑ Change Order ❑ Amendment ❑ Contract ® Other: Lease Agreement Contract Effective Date: 3/18/11 Termination Date: 5/17/11 Contract Renewal Notice (Days): NIA Number of days required notice for termination or renewal or amendment Contract Manager: Mark Madfai Department: Design Engineering Detail: (i.e. address, location, parcel number, tax id, etc.): Knudsen Properties LLC. 7831 S.259th St. Kent, 98032 T.L. 0006600030 Purpose of the lease agreement is to keep Mr. Knudsen on to manage to remaining rental properties until they can be vacated from the premises for a maximum of 60 days. This will relieve the City from having to manage the properties during this time. S:Publlc\RecordsMa nagement\Forms\contractCover\adcc7832 1 11/08 LEASE AGREEMENT THIS LEASE is entered into between the CITY OF KENT, a Washington municipal corporation ("Owner"), whose mailing address is 220 Fourth Avenue South, Kent, Washington 98032, and KNUDSEN PROPERTIES LIMITED LIABILITY COMPANY, a Washington limited hatInity company ("Tenant'), whose mailing address is PO Box 1145, Kent, Washington 98032- 1145. 1. PREMISES The Owner hereby lets and leases to Tenant the property located on King County Tax Parcel No 0006600030, located at 7831 S. 259"' Street, Kent, Washington 98032. The area so leasea is nereinafter called "the Premises" and is depicted in Exhibit "A" attacnea and incorporated by this reference. 2. 1 E Tenant formerly owned the Premises and used the Premises for various business purposes. Tenant sold the Premises to Owner, and the purpose of this Lease is to allow Tenant_ to close down all his business and other operations on site and to fully vacate the Premises by no later than the end of the Lease Term. Further, no use shall be made of the Premises, nor act done in or about the Premises, which is illegal, unlawful, or which will increase the existing rate of insurance upon the Premises. Tenant shall not commit, or allow to be committed upon the Premises, any waste or any public or private nuisance. Tenant wlll comply, at Tenant's own cost and expense, with all reasonable orders, notices, regulations or requirements of any municipality, state or other governmental authority respecting the use of the Premises. 3. TERM The term of this Lease shall commence on the Effective Date of this Lease. This Lease shall continue for sixty (60) days ending May 17, 2011. This Term can only be extended by written agreement between the parties. 4. RENT Owner grants this Lease rent-free for the Term as part consideration for Owner's purchase of the Premises from Tenant. In addition, Owner will provide Tenant $5,000.00 as additional consideration in exchange for Tenant's promise to close its business operations and the operations of its former tenants and sub-tenants, and to vacate the Premises by the end of the Lease Term. If the parties agree to extend the Term, rent for any extension period will be Six Thousand and No/100 Dollars ($6,000.00) per month, due on the first day of each month. Further, Tenant shall pay all charges for electricity, water, garbage, heat, telephone, and all other services supplied to the Premises. All leasehold assessments and charges not specifically assumed by the Owner are the obligation of and payable by the Tenant. 5. TAXES Owner shall be responsible to pay all taxes that accrue during the Lease Term. LEASE AGREEMENT— Page 1 of 8 (between the Oty of Kent and Knudsen Properties Lrmrted Lrabr/ity Company) 6. RE-DELIVERY Tenant, at the expiration of the Term, any extension of the Term, or upon any sooner termination of this Lease, will, without notice, quit and deliver up the Premises to the Owner peaceably, quietly, and in as good order and condition as the same now are, , reasonable use and wear excepted. 7. TENANT'S OBLIGATIONS Tenant shall be responsible to maintain the Premises during the Term, including any extensions, including property management, security, collection of rents from pre-closing tenants or sub-tenants remaining on the Premises, and ensuring the prompt vacation of all remaining pre-closing tenants or sub-tenants prior to the expiration of this Lease. 8. CONDITION OF THE PREMISES The Premises are being leased "as is". Owner is not obligated to make any repairs to the Premises. All necessary repairs to maintain the condition of the Premises, minus reasonable wear and tear shall be paid by Tenant. 9. REPAIRS AND ALTERATIONS Tenant shall not make any alterations, additions or improvements to the Premises, without the consent of Owner in writing first, which shall not be unreasonably withheld. All alterations, additions and improvements that are made, shall be at the sole cost and expense of Tenant. All improvements shall become the property of the Owner except for improvements that Owner, at Owner's option, agrees are the property of Tenant, or improvements that Owner requests Tenant to remove at termination. If Tenant performs work with the consent of the Owner, Tenant agrees to comply with all laws, ordinances, rules, and regulations of the City, County, and any other authorized public authority. Tenant further agrees to save Owner free and harmless from damage, loss or expense arising out of that work. Tenant agrees that Owner has the right, but not the duty, to make alterations to the Premises. 10. U TILITIES Tenant shall pay for all utilities provided to the Premises. 11. INSURANCE Tenant shall procure and maintain for the duration of the Lease insurance against claims for injuries to persons or damage to property which may arise from or in connection with Tenant's use of the Premises. Tenant shall name Owner as an additional insured on this policy, subject to notice to Owner thirty (301 days prior to cancellation 12. INDEMNIFICATION/HOLD HARMLESS Tenant shall defend, indemnify and hold Owner, its officers, officials, employees and volunteers harmless from any and all claims, injuries, damages, losses or suits including attorney fees, arising out of or in connection with the performance of this Lease, except for injuries and damages caused by the sole negligence of Owner. Should a court of competent jurisdiction determine that this Lease is subject to RCW 4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or LEASE AGREEMENT-Page 2 of 8 (between the City of Kent and Knudsen Properties Limited Llabdity Company) damages to property caused by or resulting from the concurrent negligence of Tenant and Owner, its officers, officials, employees, and volunteers, Tenant's liability hereunder shall be only to the extent of Tenant's negligence. The provisions of this section shall survive the expiration or termination of this Lease. 13. LIENS AND INSOLVENCY Tenant shall keep the Premises and property in which the Premises are situated, free from any liens arising out of any work performed, materials furnished, or obligations incurred by Tenant. 14. ASSIGNMENT Tenant shall not assign this Lease or any part of this Lease and shall not let or sublet the whole or any portion of the Premises, except as authorized by Owner. This Lease shall not be assignable by operation of law. 16. ACCESS Tenants will allow Owner or Owner's agents free access at all reasonable times to the Premises for inspection This right shall not be construed as an agreement on the part of the Owner to make repairs, additions, or alterations. 16. NOTICES All notices to be given by the parties hereto shall be in writing and may either be served personally or may be deposited in the United States Mail, postage prepaid, by either registered mail or by regular mail with certificate of mailing obtained Notices shall be mailed to the addresses below, or a later changed address provided in writing to the party. OWNER: City of Kent, Public Works Engineering Attn: Mark Madfai 400 West Gowe Kent, Washington 98032 (253) 856-5521 TENANT: Knudsen Properties Limited Liability Company Attn: Ralph and Mary Michaele Knudsen, Managers 7831 S. 259"' Street Kent, Washington 98032 (253) 653-6000 17. DEFAULT AND RE-ENTRY If Tenant shall violate, default or not comply with any of the material covenants, agreements or provisions of this Lease, then Owner may cancel this Lease upon giving the notice required by law, and re-enter the Premises, using such force as may be required. LEASE AGREEMENT—Page 3 of 8 (between the City of Kent and Knudsen Properties Limited Liability Company) The failure of Owner to insist upon strict performance of any of the covenants and agreements of this Lease, or to exercise any option herein conferred in any one or more instances, shall not be construed to he a :^:a:ver or relinquishment of the covenants and agreements of this Lease, or any other covenant or agreements, but the same shall be and remain in full force and effect. 18. COSTS AND ATTORNEYS FEES If by reason of any default on the part of Tenant it becomes necessary for Owner to use an attorney, or if Tenant shall bring any action for any relief against Owner, declaratory or otherwise, arising out of this Lease, each party shall pay its own legal costs and attorney fees, including costs and fees for any appeals. 19. REMOVAL OF PROPERTY In the event of any entry in, or taking possession of, the Premises, Owner shall have the right, but not the obligation, to remove from the Premises all personal property located on the Premises. Owner may store the same in any place selected by Owner, including but not limited to a public warehouse, at the expense and risk of the owners of the personal property, with the right to sell such stored property in accordance with Chapter 59.18 RCW 20. HEIRS AND SUCCESSORS Subject to the assignment and subletting provisions, the covenants and agreements of this Lease shall bind the heirs, legal representatives, successors and assigns of any or all of the parties. 21. HOLDOVER If Tenant shall holdover after the expiration of the term of this Lease, such tenancy shall be a month to month tenancy, terminable as provided by the laws of the State of Washington. During such tenancy, Tenant agrees to pay to Owner Six Thousand and No/100 Dollars ($6,000 00) per month and to be bound by all of the terms, covenants, and conditions of this Lease, so far as applicable. 22. SUBORDINATION Upon Owner entering into any financing or refinancing affecting the Premises, Tenant agrees to execute documents within three (3) days of the request of Owner to subordinate this Lease to any mortgage, (or deed of trust or other security) granted to a financing institution or other secured party or entity. 23. COMMUNICATIONS Tenant is responsible for all installation, operation, and termination charges related to its own independent telephone system, including, but not limited to, costs, expenses, and charges for telephone equipment and line charges, line installation, inside wiring, re- configuration, and system repairs. 24. EFFECTIVE DATE LEASE AGREEMENT- Page 4 of 8 (between the Gty of Kent and Knudsen Properties LIMIted Liability Company) This Lease Agreement shall take effect and commence on the last date entered under the Owner's or the Tenant's signatures below. The foregoing conditions are mutually agreed to by Owner and Tenant. OWNER: CITY OF KENT S e Cooke Its: r 2/ TENANT: KNUDSEN PROPERTIES LIMITED LIABIIjLITY COMPANY By: Ralph Knu <en Its: Date: 3� KNUDSEN PROPERTIES LIMITED LIABILITY COMPANY By: M ry ichaele Knx(dsen Its: �-�Aff Date: oyl (Notary Public Acknowledgements Appear on Next Page) LEASE AGREEMENT- Page 5 of 8 (between the City of Kent and Knudsen Properties Limited Liabildy Company) STATE OF WASHINGTON ) ss. COUNTY OF KING ) I hereby certify that I know or have satisfactory evidence that Suzette Cooke is the person who appeared before me, and said person acknowledged that she signed this instrument, on oath stated that she is authorized to execute the instrument on behalf of the City of Kent as its Mayor, 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- L3F,S WHEREOF, I have hereunto set my hand and official seat r first above written. _Qi� �pTA U i AU9O4 Fo \��`� NOTARY PUBLIC, in an or the State F WASN of Washington, residing at My appointment expires ,7/5- /z-- STATE OF WASHINGTON ) ss. COUNTY OF KING ) On this I"� day of`�\(S l 2011, before me a Notary Public in and for the State of Washington, personally appeared Ralph Knudsen, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person who executed this instrument and acknowledged it to be his/her free and voluntary act and deed for the uses and purposes mentioned in this instrument. -Notary Seal Must Appear Within This Box- >V� WHEREOF, I have hereunto set my hand and official seal &i.0 first above written. j -29;1 ,. �pZ:' NOTARY PUBLIC, in and for the State OcNIASA\NG of Washington, residing at i '\ o�' My appointment expires l LEASE AGREEMENT- Page 6 of 8 (between the City of Kent and Knudsen Properties Limited Liability Company) STATE OF WASHINGTON ) Ss. COUNTY OF KING ) On this IL�' day o 2011, before me a Notary Public in and for the State of Washing on, personally appeared Mary Michaele Knudsen, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person who executed this instrument and acknowledged it to be his/her free and voluntary act and deed for the uses and purposes mentioned in this instrument. -Notary Seal Must Appear Within This Box- -QIiYy(1 EREOF, I have hereunto set my hand and official seals hit above written. : Im Jt1 '4��wA3H`N�O� NOTARY PUBLIC in and for the State of Washington, residing at •� ov+�� My appointment expires ii -1 P\Qvd\Wes\Open Files\1567-Horseshoe Bend Levee Purchase&Sale Agreements\Knudsen Lease Agreement V3 Clean docx LEASE AGREEMENT- Page 7 of 8 (between the Gty of Kent and Knudsen Properties Limited Liablliiy Company) Attachment A That portion of Samuel W. Russell Donation Claim Number di in the northwest quarter of the northeast quarter of Section 25, Township 22 Nomth, Range a East, W.M. , in King County, Washington, described as follows: Beginning at the intersection of the west margin of a County Road (e0t" Avenue South) which runs along the west side of the Northern Pacific Railroad with the south margin of another County Road running east and west (South 2590' Street) , said point of intersection being 379.5 feet, more or less, north of the south line of the Russell Donation Claim, as shown in the plat of Horseshoe Acre Tracts to Kent, according to the plat thereof recorded in Volu,:me 15 of Plats, page 10, in King County, Washington); thence south along the west margin of said County Road to the south line of the Donation Claim; thence west along said south line to the bank. of White River, now caaled Green River; thence north 210 west 336.6 feet; thence north along a line, which would, if extended, run through a point 1,370 16 feet south and 1,980 feet east of the northwest corner of the Russell Donation Clam to the south margin of the County Road ( South 259t)' Street) heing west of t`le beginning; thence east along said road margin to the beginning; EXCEPT that portion conveyed. to King County by deed recorded under Recording Number 9301111332. LEASE AGREEMENT- Page 8 of 8 (between the Gty of Kent and Knudsen Propertres Limited Lrabilrty Company) 03-21-'11 10:29 FROM- T-38 YUUau& L-U5m OP ID.,E23 ,4coao CERTIFICATE OF LIABILITY INSURANCE A, �Op YYYYI D �-` asr21r11 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(Sy AUTHORIZED REPRESENTATIVE OR PRODUCER,AND THE CERTIFICATE HOLDER. IMPORTANT. If the certificate holder is an ADDITIONAL INSURED,the pollcy(les) must be endorsed. if SUBROGATION IS WAIVED,subject to the terms and conditions of the policy.Certain policies may require an endorsement. A statement on this Certificate does not confer rights to the certificate holder in lieu of such endorsement s PRODUCER 425-7T5-6446 UNTACT Scott M.Campbell 426-640.9225 PHONECAX insurance Services Group,trio, ac N.E A C Ne 600 Maln Street,Suits A ADD DU L Edmonds,WA 90020 PR Scott M Campbell ell ASTRO-1 INSURERS AFPORDIMG COVERAGE NAIC R _ INSURED AstrD Mail,Inc. INSURER A-Oregon Mutual Ins.Co. 14BOT Knudson Properties,LLC INSURERN; 7831 S,269th St INO -- Kent,WA 96032 URER0: INSURER D: IN4UI�R E- U14 6RF• COVERAGES CERTIFICATE NUMBER: REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS !N TYPE OP INSURANCE POLICY NUMBER MMID F OD ODIYYYY LIMITS GENOKALUADILITY EACH OCCUR"NCE_ 6, 11000.00 DAMAGA I--COMMERCIAL GENERAL LIABILITY X R IScE�ca n nce S 100,00 CLAI M94AADE F—IOCCUR NED EKP kArg,&&"'Wri s 8,000 X Business Owners BSP712599 c6f09f10 06/09/11 1 PE RSONAL 6 ADV INJURY 4 1,000,000 GENERAL AGGREGATE S 2,000,00 GEu'LAGGREGATELWIITAPPLIESPER PRODUCTS-CONPIOPAGG 6 2,000,00 POLiGY PRO• LOC I S AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT 6 (Ea soeftm) ANY AUTO BODILY INJURY(par Pakaen) ALL OWNEOAUT08 BODILY INJURY(Per AWAON) 4 'SCHEDVLEOAUTO8 PROPERTYOAMAGE 4 HIRED AUTOS (Per amaenp NON-OWNED AUTOS 6 S UMBRELLA LIAR OCCUR EACH OCCURRENCE 4 I EXCESSLIAG AIMS-MADE AGGREGATE ! DEDUCTIBLE ! RETENTION 6 6 "IIU(8R9C0MP£)4ATi0N WCSTA u OTII AND EMPLOYERS'LIABILITY YIN ANY PROPR)ETORIPARTNERIEXECUTIVE ❑ NIA EL EACH ACCIDENT 6 OFFICERnAEMBE1)EXCLUDED?(Mantlatay In NH) EL DISFASE-EA EMPLOYEE 6 if vec da-ct,pP yMIpI EL DISEASE-POLICY UMIT S DESG IP OfOPERATIONa-DelaW DEBOROTiONOF00ERATIONSILOCA71ONSIVE14ICLEB IAhaeh AC431115I6I,Addelanal Remark,Schadule.11 man,pace[%n4mmdl Certificate holder is landlord as additional insured regarding premises leased by the named insured insured At.7831 S.258th Street,Kant,WA C RTIFICATE HOLDER CANCELLATION CITYKEN SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN City Of Kent Public Works ACCORDANCE WITH THE POLICY PROVISIONS. Engina&6ng Mark Madfal AVTHORU:EO REPRESENTATIVE 400 West Gowae Kent,WA 95032 019OB-2009 ACORD CORPORATION. All rights T669n/ed. ACORD 25(200SM9) The ACORD name and logo are registered marks of ACORD REQUEST FOR MAYOR'S SIGNATURE • Please Fill in All Applicable Boxes KENT WASHINGTON This form must be printed on cherry paper t Routing Information (ALL REQUESTS MUST FIRST BE ROUTED THROUGH THE LAW DEPARTMENT) Originator Mark Madfai Phone (Originator) 5521 Date Sent- 3/14/11 Date Required 3/21/11 Return Signed Document to Mark Madfal CONTRACT TERMINATION DATE: 5/17/11 VENDOR NAME: Knudsen Properties LLG DATE OF COUNCIL APPROVAL: Brief Explanation of Document. The attached Lease Agreement is necessary to allow the tenant to close down all his business and other operations on site and to fully vacate the premises by no later than the end of the lease term for the Horseshoe Bend Levee Protect All Contracts Must Be Routed Through the Law Department (This Area to be Completed By the Law Department) Received:Approval of Law Dept RECEIVED Law Dept. Comments MAR 15 2011 KENT LAW DEPT Date Forwarded to Mayor. �1 Shaded Areas to Be Completed by Administration Staff Received: Ci it 7U,,r,, Recommendations & Comments. Disposition. Date Returned: U Iage5870_templatebase 2/07