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Home My WebLink AboutL-14-055 - Original - Charlie & Shirley Perkins - 715 W Smith, Kent City Storage Facility Lease - 04/01/2014 i I CITY CLERK KEN'1' CITY OF KENT WASHtNnTOH 220 40 Avenue South Kent,WA 98032 Fax: 253-856-6725 PHONE: 253-856-5725 Lease Agreement Cover Sheet This document is to be used in lieu of the Contract Cover Sheet SECTION 1 — CONTRACT PROCESSING AND TENANT SET-UP: Contract Number: (to be completed by Clerk's Office) 1. Responsible Department/Division: Parks/Facilities 2. Contact Person and Title: Alex Ackley Telephone Extension: 5081 3. Tenant (Customer) Name: Charlie and Shirley Perkins 4. Tenant (Customer) Number: 131243 S. General Ledger Account Number: 54006900.64520.5800 6. King County Tax Parcel Number: 242220490904 7. Address of Parcel: 715 W. Meeker, Kent, 98032 8. Type of Lease: Lease Agreement 9. Council Authorization Date: 05/06/2014 10. Mayor Signature Date: SECTION 2 — LEASE DURATION AND IMPORTANT DATES: i 11. Lease Start Date: 04/01/2014 12. Tenant Lease Option Renewal Notification Due Date: N/A 13. Lease Termination Date: 03/31/2019 14. Lease Duration: 5 years SECTION 3 — RENT DETERMINATION AND DUE DATE: 15. Rent: $4,750/month for first 2 years, $5,000/month for remaining 3 years 16. Rent Due Date: Fifth of each Month 17. Calculation of Rental Increase(s): N/A Lease Agreement Cover Sheet—Page 1 of 3 i �I SECTION 4 — LEASEHOLD EXCISE TAX: 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 j 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 UTILITIES: 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: City of Kent Acct # 620-01347 ® Sewer: City of Kent Acct # 620-01347 ® Drainage: City of Kent Acct # 620-01347 ® Garbage: Allied Waste ® Electricity/Natural Gas: Puget Sound Energy SECTION 6 — MONETARY PENALTIES AND LATE INTEREST CHARGES: 22. Monetary Penalties: $100 if rent is.not received by 151" of month 23. Late Interest: All delinquesnt sums not paid within 15 days of due date shall, at Landlord's option, bear interest at the rate of 8% per annum. Interest on all delinquent amounts shall be calculated from the original due date to the date of payment. SECTION 7 — OTHER LEASE CONSIDERATIONS: Special lease considerations, e.g. non-monetary rent, etc Special lease considerations, e.g. non-monetary rent, et. Tenant agrees to reimburse Landlord for all taxes applicable to the premises during the lease term. Lease Agreement Cover Sheet—Page 2 of 3 ® None (check box if no considerations) I I i I Lease Agreement Cover Sheet—Page 3 of 3 i LEASE AGREEMENT THIS LEASE is entered into between CHARLIE AND SHIRLEY PERKINS, a married couple ("Landlord"), whose mailing address is 17817 146th Avenue SE, Renton, WA 98058, and THE CITY OF KENT, a Washington municipal corporation ("Tenant"), whose mailing address is 220 Fourth Avenue South, Kent, Washington 98032. 1. PREMISES The Landlord hereby lets and leases to Tenant the property located at 715 W. Smith, Kent, Washington. The area so leased is hereinafter called "the Premises" and is depicted in Exhibit "A" attached and incorporated by this reference. 2. USE The Premises shall be used only for any legal use, and for no other business or purpose without the prior written consent of Landlord. No act shall be done on or around the Premises that is unlawful or that will increase the existing rate of insurance on the Premises. Tenant shall not commit or allow to be committed any waste upon the Premises, or any public or private nuisance. 3. TERM The Term of this Lease shall commence on April 1, 2014 (the "Commencement Date"), and shall continue for a period of five (5) years. This Term can only be extended by written agreement between the parties. Except as specified elsewhere In this Lease, Landlord represents and warrants to Tenant that the Premises, including the structural condition of the Premises and the condition of all mechanical, electrical and other systems on the Premises are in a safe, good and usable condition sufficient to meet Tenant's intended uses. Prior to the end of the Term, Tenant may terminate this Lease by giving Landlord twenty (20) days written notice prior to the end of the month. Landlord may only terminate this Agreement under an Event of Default by Tenant, as provided in this Lease. 4. RENT Tenant shall pay Landlord the amount of Four Thousand Seven Hundred Fifty and No/100 Dollars ($4,750.00) per month for the first two (2) years of the Lease Term, and shall pay Five Thousand Dollars per month for the remaining three (3) years of the Lease Term. Tenant shall pay Landlord on or before the first day of each month during the Lease Term, and will pay for the annual catch basin cleaning, and any other additional payments due to Landlord (collectively the "Rent")-when required under this Lease. Payments for any partial month at the beginning or end of the Lease Term shall be prorated. Tenant shall endeavor to pay Landlord under this Lease by the fifth (5tt') day of each month. If any sums payable by Tenant to Landlord under this Lease are not received by the fifteenth (15t") day of each month, Tenant shall pay Landlord, at Landlord's option, One Hundred and No/100 Dollars ($100.00) in addition to the amount due, for the cost of collecting and handling such late payment. In addition, all delinquent sums payable by Tenant to Landlord and not paid within fifteen (15) days of the due date shall, at Landlord's option, bear interest at the rate of eight percent (8%) per annum. Interest on all delinquent amounts shall be calculated from the original due date to the date of payment. LEASE AGREEMENT— Page 1 of 15 (between the City of Kent and Perkins) i S. SECURITY DEPOSIT Landlord acknowledges that Tenant has paid the sum of One Thousand and No/100 Dollars ($1,000.00) to Landlord as a Security Deposit under the prior lease for the Premises between the parties dated March 28, 2006. Landlord may commingle the Security Deposit with its other funds. If Tenant breaches an covenant or condition of this Lease, including but not limited to the payment of Rent, Landlord may apply all or any part of the Security Deposit to the payment of any sum in default and any damage suffered by Landlord as a result of Tenant's breach. In such event, Tenant shall, within five (5) days after written demand therefore by Landlord, deposit with Landlord the amount so applied. Any payment to Landlord j from the Security Deposit shall not be construed as a payment of liquidated damages for any default. If Tenant complies with all of the covenants and conditions of this Lease throughout the Lease Term or any earlier termination as provided for in Section 3, the Security deposit shall be repaid to Tenant without interest within thirty (30) days after the vacation of the Premises by Tenant. 6. TAXES Tenant shall reimburse Landlord for all Taxes applicable to the Premises during the Lease Term. Landlord shall present to Tenant a copy of a statement showing the amount paid by Landlord for Taxes, along with satisfactory evidence that payment of Taxes has been made by Landlord. Tenant shall then reimburse Landlord for Taxes with Tenant's next rent installment. If any Taxes paid by Tenant cover any period of time before or after the expiration of the Term or any earlier termination as provided for in Section 3, Tenant's share of those Taxes paid will be prorated to cover only the period of time within the tax fiscal year during which this Lease was in effect, and Landlord shall promptly reimburse Tenant to the extent required. The term "Taxes" shall mean: (i) any form of real estate tax or assessment imposed on the Premises by any authority, including any city, state or federal government, or any improvement district, as against any legal or equitable interest of Landlord or Tenant in the Premises or in the real property of which the Premises are a part, or against rent paid for leasing the Premises; and (ii) any form of personal property tax or assessment imposed on any personal property, fixtures, furniture, tenant improvements, equipment, inventory, or other items, and all replacements, improvements, and additions to them, located on the Premises, whether owned by Landlord or Tenant. "Taxes" shall include any net income tax imposed on Landlord for income that Landlord receives under this Lease. Tenant may contest the amount or validity, in whole or in part, of any Taxes at its sole expense. Upon the termination of any such proceedings, Tenant shall pay the amount of such Taxes or part of such Taxes as finally determined, together with any costs, fees, interest penalties, or other related liabilities. Landlord shall cooperate with Tenant in contesting any Taxes, provided Landlord incurs no expense or liability in doing so. 7. 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 Landlord peaceably, quietly, and in as good order and condition as the same now are, reasonable use and wear excepted. 8. ALTERATIONS LEASE AGREEMENT— Page 2 of 15 (between the City of Kent and Perkins) i i Tenant may make alterations, additions or improvements to the Premises ("Alterations"), with the prior written consent of Landlord, which shall not be unreasonably withheld. The term "Alterations" shall not include the installation of shelves, moveable partitions, Tenant's equipment, and trade fixtures that may be performed without damaging existing improvements or the structural integrity of the Premises, and Landlord's consent shall not be required for Tenant's installation of those items. Tenant shall complete the Alterations at Tenant's expense in compliance with all applicable laws and in accordance with plans and specifications approved by Landlord, and using contractors approved by Landlord. Landlord shall be deemed the Owner of all Alterations except for those which Landlord requires to be removed at the end of the Lease Term or any earlier termination of the Lease. Tenant shall remove all Alterations at the end of the Lease Term or any earlier termination of the Lease unless Landlord conditioned its consent upon Tenant leaving a specified Alteration at the Premises, in which case Tenant shall not remove such Alteration. Tenant shall repair any damages to the Premises caused by the removal of Alterations. If Tenant performs work with the consent of the Landlord, Tenant agrees to comply with all laws, ordinances, rules, and regulations of the City, County, and any other authorized public authority. 9. REPAIRS AND MAINTENANCE The Premises are being leased "as is." Landlord is not obligated to make any repairs to the Premises, except as described in this Section. Tenant shall, at its sole expense, maintain the Premises in good condition and promptly make all repairs and replacements, whether structural or non-structural, necessary to keep the Premises in safe operating condition, including all utilities and other systems serving the Premises, but excluding the roof, foundation and exterior walls, which Landlord shall maintain in good condition and repair at Landlord's expense. Tenant shall not damage any demising wall or disturb the structural integrity of the Premises and shall promptly repair any damage or injury done to any such demising walls or structural elements caused by Tenant or its employees, agents, contractors, or invitees. Tenant shall maintain the landscape in a neat and attractive manner. Notwithstanding anything in this Section to the contrary, Tenant shall not be responsible for any repairs to the Premises made necessary by the negligence or willful misconduct of Landlord or its agents, employees, contractors or invitees therein. 10. ACCESS AND RIGHT OF ENTRY After reasonable notice from Landlord (except in cases of emergency, where no notice is required), Tenant shall permit Landlord and its agents, employees and contractors to enter the Premises at all reasonable times to make repairs, inspections, alterations or Improvements. This Section shall not impose any repair or other obligation upon Landlord not expressly stated elsewhere in this Lease. After reasonable notice to Tenant, Landlord shall have the right to enter the Premises for the purpose of showing the Premises to prospective purchasers or lenders at any time, and to prospective tenants within 180 days prior to the expiration or sooner termination of the Lease Term, and for posting "for lease" signs within 180 days prior to the expiration or sooner termination of the Lease Term. 11. SIGNAGE Tenant shall obtain Landlord's written consent before installing any signs upon the Premises, which shall not be unreasonably withheld or delayed. Tenant shall install any approved signage at Tenant's sole expense and in compliance with all applicable laws. Tenant shall not damage or deface the Premises in installing or removing signage and shall repair any injury or damage to the Premises caused by such installation or removal. LEASE AGREEMENT— Page 3 of 15 (between the City of Kent and Perkins) I I 12. DESTRUCTION OR CONDEMNATION a. Damage and Repair. If the Premises are entirely destroyed or partially damaged by fire or other casualty, then Tenant may, at its sole option, within fourteen (14) days of the event causing the damage, terminate this Lease by providing Landlord written notice of termination. If Tenant does not terminate this Lease and if the Premises are partially damaged but not rendered untenantable, Landlord shall diligently restore the Premises. Landlord shall have no obligation to restore the Premises if insurance proceeds are not available to pay the entire cost of such restoration. If Insurance proceeds are available to Landlord but are not sufficient to pay the entire cost of restoring the Premises, the Landlord may elect to terminate this Lease and keep the insurance proceeds, by notifying Tenant within thirty (30) days of the date of such casualty. If the Premises are entirely destroyed and rendered untenantable, by fire or other casualty, and if Tenant has not exercised its right to terminate as provided above, Landlord may, at its option: (a) terminate this Lease as provided herein, or (b) restore the Premises to their previous condition, If Landlord restores the Premises under this Section, Landlord shall proceed with reasonable diligence to complete the work, and the base monthly rent shall be abated in the same proportion as the untenantable portion of the Premises bears to the whole Premises, provided that there shall be a rent abatement only if the damage or destruction of the Premises did not result from, or was not contributed to directly or indirectly by the act, fault or neglect of Tenant, or Tenant's officers, contractors, licensees, subtenants, agents, servants, employees, guests, invitees or visitors. Provided Landlord complies with its obligations under this Section, no damages, compensation or claim shall be payable by Landlord for inconvenience, loss of business, or annoyance directly, incidentally or consequentially arising from any repair or restoration for any portion of the Premises. Landlord will not carry insurance of any kind for the protection of Tenant or any improvements paid for by Tenant or as provided in Exhibit B or on Tenant's furniture or on any fixtures, equipment, improvements or appurtenances of Tenant under this Lease, and Landlord shall not be obligated to repair any damage thereto or replace the same unless the damage is caused by Landlord's negligence or willful misconduct. b. If the Premises are made untenantable by eminent domain, or conveyed under a threat of condemnation, this Lease shall automatically terminate as of the earlier of the date title vests in the condemning authority or the condemning authority first has possession of the Premises and all Rents and other payments shall be paid to that date. In case of taking of a part of the Premises that does not render the Premises untenantable, then this Lease shall continue in full force and effect and the base monthly rental shall be equitably reduced based on the proportion by which the floor area of any structures is reduced, such reduction in Rent to be effective as of the earlier of the date the condemning authority first has possession of such portion or title vests in the condemning authority. Landlord shall be entitled to the entire award from the condemning authority attributable to the value of the Premises and Tenant shall make no claim for the value of its leasehold. Tenant shall be permitted to make a separate claim for the value of its leasehold. Tenant shall be permitted to make a separate claim against the condemning authority for moving expenses or damages resulting from interruption in its business, provided that in no event shall Tenant's claim reduce Landlord's award. LEASE AGREEMENT— Page 4 of 15 (between the City of Kent and Perkins) I 13. UTILITIES Landlord shall not be responsible for providing any utilities to the Premises, but represents and warrants to Tenant that as of the Commencement Date, electricity, water, sewer and telephone utilities are available at or adjacent to the Premises. Tenant shall determine whether the available capacity of such utilities will meet Tenant's needs. Tenant shall install and connect, if necessary, and directly pay for all water, sewer, gas, janitorial, electricity, garbage removal, heat, telephone and other utilities and services used by Tenant on the Premises during the Term, whether or not such services are billed directly to Tenant. Tenant will also procure, or cause to be procured, without cost to Landlord, all necessary permits, licenses or other authorizations required for the lawful and proper installation, maintenance, replacement and removal on or from the Premises of wires, pipes, conduits, tubes and other equipment and appliances for use in supplying all utilities or services to the Premises. Landlord, upon request of Tenant, and at the sole expense and liability of Tenant, shall join with Tenant in any application required for obtaining or continuing such utilities or services. 14. INSURANCE a. Liability insurance. During the Lease Term, Tenant shall pay for and maintain commercial general liability insurance with broad form property damage and contractual liability endorsements. At Landlord's option, this policy shall name Landlord and Landlord's lender(s) as an additional insured. This policy shall insure Tenant's activities and those of Tenant's employees, officers, contractors, licensees, agents, servants, employees, guests, invitees or visitors with respect to the Premises against loss, damage or liability for personal injury or bodily injury (including death) or loss or damage to property with a combined single limit of not less than $1,000,000, and a self-insured retention of not more than $100,000, The Insurance will be non-contributory with any liability insurance carried by Landlord. b. Property insurance. During the Lease Term, Tenant shall pay for and maintain special form property insurance (with coverage for earthquake and, if the Premises are in a flood plain, flood damage) for the Premises, in an amount sufficient to prevent Landlord or Tenant from becoming a co-insurer under the terms of the policy, and in an amount not less than the full replacement cost of the Premises, with a deductible of not more than $10,000. The property insurance policy shall name Tenant as the insured and Landlord and Landlord's lender(s) as additional insureds, with loss payable to Landlord, Landlord's lender(s), and Tenant as their interests may appear. In the event of a casualty loss on the Premises, Landlord may apply Insurance proceeds under the property insurance policy in the manner described in Section 12(a). c. Miscellaneous, Insurance required under this Section shall be with companies rated A-V or better in Best's Insurance Guide, and which are authorized to transact business in the State of Washington. No insurance policy shall be cancelled or reduced in coverage and each such policy shall provide that it is not subject to cancellation or a reduction in coverage except after thirty (30) days prior written notice to Landlord. At Landlord's option, Tenant shall deliver to Landlord upon commencement of the Lease and from time to time thereafter, copies of the insurance policies or certificates of insurance and copies of endorsements required by this Section. In no event shall the limit of such policies be considered as limiting the liability of Tenant under this Lease. LEASE AGREEMENT— Page 5 of 15 (between the City of Kent and Perkins) d. Waiver of Subrogation. Landlord and Tenant hereby release each other and any other tenant, their agents or employees, from responsibility for, and waive their entire claim of recovery for any loss or damage arising from any cause covered by insurance required to be carried by each of them. Each party shall provide notice to the insurance carrier or carriers of this mutual waiver of subrogation, and shall cause its respective insurance carriers to waive all rights of subrogation against the other. This waiver shall not apply to the extent of the deductible amounts to any such policies or to the extent of liabilities exceeding the limits of such policies. 15. INDEMNIFICATION/HOLD HARMLESS Tenant shall defend, indemnify and hold Landlord harmless against all liabilities, damages, costs and expenses, including attorneys' fees, for personal Injury, bodily injury (Including death) or property damage arising from any negligent or wrongful act or omission of Tenant or Tenant's officers, contractors, licensees, subtenants, agents, servants, employees, guests, invitees, or visitors on or around the Premises, or arising from any breach of this Lease by Tenant. Tenant shall use legal counsel acceptable to Landlord in defense of any action within Tenant's defense obligation. Landlord shall defend, indemnify and hold Tenant harmless against all liabilities, damages, costs, and expenses, including attorneys' fees, for personal injury, bodily injury (including death) or property damage arising from any negligent or wrongful act or omission of Landlord or Landlord's officers, contractors, licensees, agents, servants, employees, guests invitees or visitors on or around the Premises, or arising from any breach of this Lease by Landlord. Landlord shall use legal counsel acceptable to Tenant in defense of any action within Landlord's defense obligation. The provisions of this Section shall survive expiration or termination of this Lease. 16. 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. Tenant shall indemnify and hold Landlord harmless from liability for any such liens Including, without limitation, liens arising from any Alterations. If a lien is filed against the Premises by an person claiming by, through or under the Tenant, Tenant shall, upon request of Landlord, at Tenant's expense, immediately furnish to Landlord a bond in form and amount and issued by a surety satisfactory to Landlord, indemnifying Landlord and the Premises against all liabilities, costs and expenses, including attorneys' fees, which Landlord could reasonably incur as a result of such lien(s). i 17. ASSIGNMENT Tenant shall not assign, sublet, mortgage, encumber or otherwise transfer any interest in this Lease (collectively referred to as a "Transfer") or any part of the Premises, without first obtaining Landlord's written consent, which shall not be unreasonably withheld or delayed. No Transfer shall relieve Tenant of any liability under this Lease notwithstanding Landlord's consent to such Transfer. Consent to any such Transfer shall not operate as a waiver of the necessity for Landlord's consent to any subsequent Transfer. As a condition to Landlord's approval, if given, any potential assignee or sublessee otherwise approved by Landlord shall assume all obligations of Tenant under this Lease and shall be jointly and severally liable with Tenant and any guarantor, if required, for the payment of Rent and performance of all terms of this Lease. In connection with any Transfer, Tenant LEASE AGREEMENT— Page 6 of 15 (between the City of Kent and Perkins) shall provide Landlord with copies of all assignments, subleases and assumption instruments. This Lease shall be assignable by Landlord without the consent of Tenant. In the event of any transfer or transfers of Landlord's interest in the Premises, other than a transfer for security purposes only, upon the assumption of this Lease by the transferee, Landlord shall be automatically relieved of obligations and liabilities accruing from and after the date of such transfer, except for any retained security deposit or prepaid rent, and Tenant shall attorn to the transferee. Notwithstanding the foregoing, on June 8, 2011, Landlord consented in writing to allow Tenant to enter into a sublease agreement with the Kent Lions Club for a portion of the Premises, and Landlord's consent for the sublease with the Kent Lions Club remains in effect for this Lease. 18. DEFAULT The following occurrences shall each be deemed an Event of Default: a. Failure to Pay. Tenant fails to pay any sum, including Rent, due under this Lease following fourteen (14) days written notice from Landlord of the failure to pay. b. Vacation/Abandonment. Tenant vacates the Premises (defined as an absence for at least fifteen (15) consecutive days without prior notice to Landlord), or Tenant abandons the Premises (defined as an absence of five (5) days or more while Tenant is in breach of some other term of this Lease). Tenant's vacation or abandonment of the Premises shall not be subject to any notice or right to cure. c. Insolvency. Tenant becomes insolvent, voluntarily or involuntarily bankrupt, or a receiver, assignee or other liquidating officer is appointed for Tenant's business, provided that in the event of any involuntary bankruptcy or other insolvency proceedings, the existence of such proceeding shall constitute an Event of Default only if such proceeding is not dismissed or vacated within sixty (60) days after its institution or commencement. d. Levy or Execution. Tenant's interest in this Lease or the Premises, or any part thereof, is taken by execution or other process of law directed against Tenant, or is taken upon or subjected to any attachment by any creditor of Tenant, if such attachment is not discharged within fifteen (15) days after being levied. e. Other Non-Monetary Defaults. Tenant breaches any agreement, term or covenant of this Lease other than one requiring the payment of money and not otherwise enumerated in this Section, and the breach continues for a period of thirty (30) days after notice by Landlord to Tenant of the breach. 19, REMEDIES Landlord shall have the following remedies upon an Event of Default. Landlord's rights and remedies under this Lease shall be cumulative, and none shall exclude any other right or remedy allowed by law. a. Termination of Lease. If an Event of Default occurs, Landlord may terminate Tenant's interest under the Lease by giving thirty (30) days written notice of LEASE AGREEMENT— Page 7 of 15 (between the City of Kent and Perkins) termination from Landlord to Tenant. The Lease shall terminate on the date specified in the notice of termination. Upon termination of this Lease, Tenant will remain liable to Landlord for damages in an amount equal to the rent and other sums that would have been owing by Tenant under this Lease for the balance of the Lease Term, less the net proceeds, if any, of re-letting of the Premises by Landlord subsequent to the termination, after deducting all Landlord's Reletting Expenses (as defined below). Landlord shall be entitled to either collect damages from Tenant monthly on the days on which rent or other amounts would have been payable under the Lease, or alternatively, Landlord may accelerate Tenant's obligations under the Lease and recover ! from Tenant: (i) unpaid rent which had been earned at the time of termination; (!I) the amount by which the unpaid rent which would have been earned after termination until the time the award exceeds the amount of rent loss that Tenant proves could reasonably have been avoided; (III) the amount by which the unpaid rent for the balance of the Term of the Lease after the time of the award exceeds the amount of rent loss that Tenant proves could reasonably be avoided (discounting such amount by the discount rate of the Federal Reserve Bank of San Francisco at the time of the award, plus 1%); and (iv) any other amount necessary to compensate Landlord for all the detriment proximately caused by Tenant's failure to perform Its obligations under the Lease, or which in the ordinary course would be likely to result from the Event of Default, including without limitation, Reletting Expenses described In the following Section. b. Re-Entry and Reletting. Landlord may continue this Lease in full force and effect, and without demand or notice, re-enter and take possession of the Premises or any part thereof, expel the Tenant from the Premises and anyone claiming through or under the Tenant, and remove the personal property of either. Landlord may relet the Premises, or any part of them, in Landlord's or Tenant's name for the account of Tenant, for such period of time and at such other terms and conditions, as Landlord, in its discretion, may determine. Landlord may collect and receive the rents for the Premises. Re-entry or taking possession of the Premises by Landlord under this Section shall not be construed as an election on Landlord's part to terminate this Lease, unless a written notice of termination is given to Tenant. Landlord reserves the right following any re-entry or reletting, or both, under this Section to exercise its right to terminate the Lease. Tenant will pay Landlord the rent and other sums which would be payable under this Lease if repossession had not occurred, less the net proceeds, if any, after reletting the Premises, after deducting Landlord's Reletting Expenses. "Reletting Expenses" is defined to include all expenses incurred by Landlord in connection with reletting the Premises, including without limitation, all repossession costs, brokerage commissions, attorneys' fees, remodeling and repair costs, costs for removing and storing Tenant's property and equipment, and tenant improvements and rent concessions granted by Landlord to any new Tenant, for a period of six (6) months from date of default. c. Waiver of Redemption Rights. Tenant, for itself, and on behalf of any and all persons claiming through or under Tenant, including creditors of any kinds, hereby waives and surrenders all rights and privileges which they may have under any present or future law, to redeem the Premises or to have a continuance of this Lease for the Lease Term, as it may have been extended. d. Nonpayment of Additional Rent. All costs which Tenant agrees to pay to Landlord pursuant to this Lease shall in the event of nonpayment be treated as if they were payments of Rent, and Landlord shall have all the rights herein provided for in case of nonpayment of Rent. LEASE AGREEMENT— Page 8 of 15 (between the City of Kent and Perk/ns) i i e. Failure to Remove Property. If Tenant fails to remove any of its property from the Premises at Landlord's request following an uncured Event of Default, Landlord may, at its option, remove and store the property at Tenant's expense and risk. If Tenant does not pay the storage costs within five (5) days of Landlord's request, Landlord may, at its option, have any or all of such property sold at public or private sale (and Landlord may become a purchaser at such sale), in such manner as Landlord deems proper, upon written notice to Tenant. Landlord shall apply the proceeds of such sale: (i) to the expense of such sale, including reasonable attorneys' fees actually incurred; (I) to the payment of the costs or charges for storing such property; (iii) to the payment of any other sums of money which may then be or thereafter become due Landlord from Tenant under any of the terms hereof; and (iv) the balance, if any to Tenant. Nothing in this Section shall limit Landlord's right to sell Tenant's personal property as permitted by law or to foreclose Landlord's lien for unpaid rent. 20. HAZARDOUS MATERIALS Landlord represents and warrants to Tenant that to the best of Landlord's knowledge, there is no "Hazardous Material" (as defined below) on, in or under the Premises as of the Commencement Date, excepts as otherwise disclosed to Tenant in writing before the execution of this Lease. Tenant shall not cause or permit any Hazardous Material to be brought upon, kept or used in or about, or disposed of on the Premises by Tenant, its agents, employees, contractors or invitees, except in strict compliance with all applicable federal, state and local laws, regulations, codes and ordinances As used herein, the term "Hazardous Material" means any hazardous, dangerous, toxic or harmful substance, material or waste including biomedical waste which is or becomes regulated by any local governmental authority, the State of Washington or the United States government due to its potential harm to the health, safety or welfare of humans or the environment. The provisions of this Section shall survive expiration or termination of this Lease. 21. NOTICES j All notices to be given by the parties hereto shall be in writing and effective (i) when delivered in person, or (ii) three (3) days after being sent by United States registered or certified mail, postage prepaid, to Landlord or Tenant at the below-listed addresses or a later changed address provided in writing: LANDLORD: Charlie and Shirley Perkins 17817 146th Avenue SE Renton, WA 98058 (425) 226-1953 TENANT: City of Kent Attn: Facilities Management Superintendent LEASE AGREEMENT— Page 9 of 15 (between the City of Kent and Perkins) i 220 Fourth Avenue S Kent, Washington 98032 (253) 856-5700 22. NON-WAIVER The failure of Landlord 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 be a waiver 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. The acceptance by Landlord of Rent or other amounts due by Tenant hereunder shall not be deemed to be a waiver of any breach by Tenant preceding such acceptance. 23. COSTS AND ATTORNEYS FEES If by reason of any default on the part of Tenant it becomes necessary for Landlord to use an attorney, or if Tenant shall bring any action for any relief against Landlord, 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. 24. HEIRS AND SUCCESSORS Subject to the assignment and subletting provisions, the covenants and agreements of this Lease shall bind the heirs, executors, administrators, legal representatives, successors and assigns of any or all of the parties. 25. HOLDOVER If Tenant shall, without the written consent of Landlord, holdover after the expiration or termination 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, the rate of rental shall remain equal to the rate last payable under this Lease. 26. SUBORDINATION This Lease shall automatically be subordinate to any mortgage or deed of trust created by Landlord which is no existing or hereafter placed upon the Premises including any advances, interest, modifications, renewals, replacements or extensions ("Landlord's Mortgage"), provided the holder of any Landlord's Mortgage or any person(s) acquiring the Premises at any sale or other proceeding under any such Landlord's Mortgage shall elect to continue this Lease in full force and effect. Tenant shall attorn to the holder of any Landlord's Mortgage or any person(s) acquiring the Premises at any sale or other proceeding under any Landlord's Mortgage provided such person(s) assume the obligations of Landlord under this Lease. Tenant shall promptly and in no event later than fifteen (15) days after request execute, acknowledge and deliver documents which the holder of any Landlord's Mortgage may reasonably require as further evidence of this subordination and attornment. Notwithstanding the foregoing, Tenant's obligations under this Section are conditioned on the holder of each Landlord's Mortgage and each person acquiring the Premises at any sale or other proceeding under any such Landlord's Mortgage not disturbing Tenant's occupancy and other rights under this Lease, so long as no uncured Event of Default exists. i LEASE AGREEMENT— Page 10 of 15 (between the City of Kent and Perkins) 27. OUIET ENJOYMENT So long as Tenant pays the Rent and performs all of its obligations in this Lease, Tenant's possession of the Premises will not be disturbed by Landlord or any claiming by, through, or under Landlord, or by the holders of any mortgage of Landlord, or any successor thereto. 28. GENERAL a. Entire Agreement. This Lease contains all of the covenants and agreements between Landlord and Tenant relating to the Premises. No prior or contemporaneous agreements or understanding pertaining to the Lease shall be valid or of any force or effect and the covenants and agreements of this Lease shall not be altered, modified or added to except in writing signed by Landlord and Tenant. b. Severability. Any provision of this Lease which shall prove to be invalid, void or illegal shall in no way affect, impair or invalidate any other provision of this Lease. c. Force Majeure. Tim periods for either party's performance under any provisions of this Lease (excluding payment of Rent) shall be extended for periods of time during which the party's performance is prevented due to circumstances beyond such party's control, including without limitation, fires, floods, earthquakes, lockouts, strikes, embargoes, governmental regulations, acts of God, public enemy, war or other strife. d. Governing Law. This Lease shall be governed by and construed in accordance with the laws of the State of Washington. e. Authority of Parties. Any individual signing this Lease on behalf of an entity represents and warrants to the other that such individual has authority to do so and, upon such individual's execution, that this Lease shall be binding upon and enforceable against the party on behalf of whom such individual is signing. f. Effective Date: This Lease Agreement shall take effect and commence on the last date entered under the Landlord's or the Tenant's signatures below. The foregoing conditions are mutually agreed to by Landlord and Tenant. LANDLORD(S): TENANT: CITY OF KENT Charlie Perkins 69: Suzet Cooke ' fits: �Ma' Dated: di ' 7 �'. ' d�7' r' Shirley Perk�ns t.. Dated: �� " '� �� APPROVED AS TOFORM: Kent Law Dep rtment LEASE AGREEMENT— Page 11 of 15 (between the City of Kent and Perkins) i P:tClvigness)pen Files\0705-2014-Parks GeneraflParkins Storage Lease Agreement for Faciilties.docx i (III I i i I i I ii LEASE AGREEMENT— Page 12 of 15 (between the City of Kent and Perkins) STATE OF WASHINGTON ) ) ss. COUNTY OF KING } On this P day of 2014, before me a Notary Public in and for the State of Washington, personal y appeared Charlie Perkins, 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 Sea!Must Appear Within This Box- IN WITNESS WHEREOF, I have hereunto set my hand and official seal theme!�tr�1r"q f first above wri en. e,- r ��pp .a„au�-T rri - �4g8iONAg!Y°tt -111, — OTA � C1 i �, °u�t>C' NOTARY PUBLIC, in and for thg State 4rr�9Th�&.29.1bt of Washington, residing at _ F """°""'� My appointment expires STATE OF WASHINGTON } } ss. COUNTY OF KING ) On this ---L day of 2014, before me a Notary Public in and for the State of Washington, personal) appeared Shirley Perkins, 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 Sea! Must Appear Within This Box- IN WITNESS WHEREOF, I have hereunto set my hand and official seal the d �r first above writt n. �- O �°°7r ag` 0 u,; " r n x >v� R S0 S /�O1/lG ,4 Pule NOTARY NOTARY PUBLIC, in and for the St te a..��i �Z of Washington, residing at P/w bM _ rr1°'ae't`,' My appointment expires - r`�_ , g')n1 LEASE AGREEMENT- Page 13 of 15 (between the City of Kent and Perkins) i 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. i -Notary Sea! Must Appear Within This Box- IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day and year first above written. P. �� cn = ` ' ~ s NOTARY PUBLIC, in and for the State of Washington, residing at �l/g+oF 9841\6 Gq � My appointment expires 11111\il\t\�`~a I LEASE AGREEMENT—Page 14 of 15 (between the City of Kent and Perkins) i EXHIBIT A [1-nal Description] SCPEll ULE A (Cantiaucd} OrdcrNP: 1201203 5'Dur NO.:in r. u.vsr ss.nruMr ' LEGAL AFSCRIFTTON EX}SIHfT (ParaAnp640i SvHadul¢A mvDvwlia¢} PARCH At ALL OF THE FOLLORING DESCRIBED PROPERTY, SITUATED IN SECTION 24, TOWNSHIP 22 NORTH, WIDE 4 EAST UP H.M,. IN KING COLWTY, XAS14163T'ON! owitairw AT THE POINT OF INTERSECTION OF THE EAST LINE OF THAT PORTION CONvG 1Y, TO THE CITY OF XE17 FOR ALLEY PURPOSES BY DEED URGER KING COUNTY RECORDCtR7 tRWER 4612994 AND THE NORTHERLY LINE OF SMITH STREET IFORHERLY M40WH AS WEST SHINa STP.EEEYI CQKVV D To THE CM OF HELM BY DEED A_COROID OANIIABY 13, L904 UNDER KING MUNT'Y RECORDING NUMBER 523203, SAID POINT OF INTRSECT2ON BEING THE SOUTHWEST CORNER OF THE PARCEL CONVEYED TO STANDARD OIL C'.AtFAHY OF CALIFORNIA AT THAT CERTAIN DEED DATED MACH 17, 1917, AS FILM FOR ?:.LORD P]AEcB it, L91T A5 DOCUHENT tou"m 11=u IN vounE 97S OF DEmS AT FAGS 503A RECORDS OF KIND COUNTY, XASHINC-TOV.- TmWCE EASTERLY ALONG SAID NORTHERLY LINE OF SAID SHITH MEET 120 FEET, HORS OR LESS, TO TIM SOUTHWEST CORHM or THAT PORTION CONVEYED TO LIBBY, HCtHEILL AND LIBBY, A NAIVE CORFORAT2OU. BY DEED CASED HARCN IS, 1030 AND REWRDED MARC4 31, 192o Won 4EL69DIM NUMBER 2595030/ THENG NORTHERLY AD=THE XESTSRLY LINE OF SAID LIBBY, HCiEILL AND LIBBY T7ACT TO A POINT ON THE SOUTHERLY LINE OF THE CHICAGO, HIL'WAUFM: AND SI. PAM SPtTA THAI1.60 FOOT RIGHT OF NAY BEING A POINT ON A CURVE HAYING A RADIUS OF 435,37 FEETi TNENCS NORTNRESFT^RV ALONG SAID CURVE TO A POINT OF THE INS'1152CTiON OF THE E.T5:-LILY LING OF SAID PORTION CCtW--YL7I TO INS CITY OF KENT FOR ALLET PURPOSES, SAID PORT INTERSECTION BEING TTv, NORTNWESr COMER OF SAID PARCEL. CONVEtTo TO STANDARD OIL COMPANY OF CALZPORNIAI - THEN=SOURF'Istu ALONG SAID EA5m4y LINE of AH,RY To THE POINT OF BEGINNING. PARCL 9 t ALL OF THE FOLLOWING DESCRIBED PROPERTY, SITUATED AN SECTION 24, TOWNSHIP 22 NORTH, RANGE 4 VATI OF X.H., IN KING CO1NTY, NASHINGTGNt COP! tq—j;o AT THE tNITHRECtION OF THE EAST LINE Or A TRACT OF LAND CONVEYED TG TiE CITY OF KENT FOR ALLEY PURPOSES BY DEED RECORDED UNDER KING COUNTY AECDRDING NUNHEt 4512994. Nib THE NORTH LINE OF SMITH STREET (FORMERLY IG mm AS WRIT$HIM SiAEET1 SAID POINT OF IHIGEtSEC7100 BEING THE SOUTHWEST CORNER OF A PARM OF LAND COVETED TO VAttgARU OIL COMPANY OF CALIFORNIA BY OEM REOCRDED UNDER Kilt' COOSIY RECORDING St MBER 1122126 IN VOLUF.E 9?5 OF OF= AT ' PAGE $03, E THLVC- NORTH 00159114. EAST ALONG THE EAST LINE OF SAID ALLEY 229.30 FEET TO AH INTERSECTION WITH THE ARC OF A CURVE ON THE SOUTHERLY LINE OF THE C4i[.GO. HILIaUK5£AND 5T. PAM RAILWAY COMPANY 5PVR TRACK AIGHT OF NAY AND THE POINT OF 3MININING, THENCE CONTINUING NORTH 00'5VIV EAST 34.06 FEET TO AN INTERSECTION WITH THE CURER LINE OF SAID SPUR TRACK RIGHT OF HAY ON TWE ABC OF A CV.?VE THE RAbLLS POI.NT OF WHICH BEARS NORTH 12'48'33^ FAST 303,06 FEEL' FROM SAID INTEASECTICNH THHiCZ SOVIRIASERLY ALONG SAID CENTER LINE Oil THE ARC OF SAID CURVE 129.55 FEET. TNiNCE SOUTH 00'59'14' WEST 30.06 FEET TO Alt INTERSECTICN WITH THE SOUTHERLY LINE OF SAID RIGHT OF NAY ON THE ARC OF A CVP.VC ALSO BEING THE NOATNEST CORM OF PARCEL 'B' OF SHORT PLAT NUMBER. SPY•?5.30 AS PER THE SHORT PLAT RECOROEO UNDER HIND C UH7Y RECORDING NUMBER 1111170442, THE RADIUS POINT OF SA:D CURVE 5ZAAtNG NORTH 13'S1'IS' E`r A DISTANCE OF 413.04 FEET FRGN SAID POINT OF INTERSECTION: "VICE NORTHWESTERLY ALIRIG SAID SOUTHERLY LINE 128.04 FEET TO THE POIIHT OF a>•uillU TNG. , LEASE AGREEMENT—Page 15 of 15 (between the City of Kent and Perkins) i I i I KENT �I Agenda Item: Consent Calendar - 73 TO: City Council DATE: May 6, 2014 SUBJECT: Perkins Building Lease Agreement for City Storage - Authorize MOTION: Authorize the Mayor to sign the Lease Agreement with Charlie Perkins for property located at 715 W. Smith Street to be used as a city storage facility, subject to final terms and conditions acceptable to the City Attorney and the Parks Director. SUMMARY: This is a renewal of a lease that began in 2006 when the city sold the "Red Barn" on Railroad Avenue. The property at 715 W. Smith Street consists of 6,350 square feet of building space and a 25,000 square foot lot. This property provides storage for Facilities, Home Repair, Cultural Arts, and the Kent Lions Club. The City subleases space to the Lions Club for storage of equipment and supplies used for their many functions that occur in Kent throughout the year. .The city shall pay the Landlord the amount of $4,750.00 per month for the first two years of the Lease Term, $5,000 per month for the remaining three years of the Lease Term. The increase after two years is due to trend. Currently, the city collects $1,000, plus $55.00 (electricity) per month for subleasing a portion of the building to Kent Lions. In June, 2014, city staff will negotiate a sublease with Kent Lions to continue charging $1,000, plus $55.00 for electricity per month for the first two years of the Lease Term and then increasing to approximately $1,050, plus $55.00 (electricity) per month for years three through five. Home Repair uses it to store building supplies used for their community-based repair program. Cultural Arts stores equipment and supplies used for their programs and events. Facilities uses the space to store furniture parts, basketball hoops, HVAC filters and other miscellaneous equipment and supplies needed to be stored until such time as it can be used. EXHIBITS: Lease Agreement j RECOMMENDED BY: Parks and Human Services Committee YEA: Ranniger - Higgins - Fincher NAY: BUDGET IMPACTS: Facilities Lease Agreement i