HomeMy WebLinkAboutL17-076 - Other - David L. Ball - Lease Agreement - 02/28/2017 ^#S CITY CLERK
V10, CITY OF KENT
0
220 4 1h Avenue South
IF 1
E N T Kent, WA 98032
IV A 5 H^N G T 0 N
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 I" of the month or
year. Those agreements and amendments will be addressed through subsequent
agreements and/or amendments, if any.
Contract Number: U -1 - 0-A-D ,
1. Responsible Department/Division: City Attorney
2. Contact Person and Title: Cheryl Rolcik-Wilcox
Telephone Extension: x5771
Lease Agreement Cover Sheet—Page 1 of 5
3. Tenant (Customer) Name: David L. Ball
4. Tenant (Customer) Number: n/a
5. General Ledger Account Number: 5400.32500.0303
6. King County Tax Parcel Number: 6000000062
7. Address of Parcel: 324 1/2 Naden Avenue S
8. Type of Lease: Leaseback of property purchased by City
9. Council Authorization Date: 12/13/16
10. Mayor Signature Date: 3/7/17
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: February 1, 2017
12. Tenant Lease Option Renewal Notification Due Date: n/a
13. Lease Termination Date: June 1, 2017, or if terminated by Tenant sooner
14. Lease Duration: 3 months
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
Lease Agreement Cover Sheet—Page 2 of 5
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.
15. Rent: Rent waived
16. Rent Due Date: n/a
17. Calculation of Rental Increase(s): n/a
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:/Ldor.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: 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)
Lease Agreement Cover Sheet—Page 3 of 5
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).
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: City Account Number/Other Provider Name
❑ Sewer: City Account Number/Other Provider Name
❑ Drainage: City Account Number/Other Provider Name
❑ Garbage: City Account Number/Other Provider Name
❑ Electricity/Natural Gas: City Account Number/Other Provider Name
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.
Lease Agreement Cover Sheet—Page 4 of 5
22. Monetary Penalties: n/a
23. Late Interest: n/a
SECTION 7 — OTHER LEASE CONSIDERATIONS:
Lease Termination Agreement executed on 4/28/17.
Lease Agreement Cover Sheet—Page 5 of 5
LEASE AGREEMENT
This Lease is entered into the date fully executed by and between the CITY OF KENT
hereinafter called the "Owner", and DAVID L. BALL, husband and wife, hereinafter called the
"Tenant".
1. PREMISES
The Owner leases to Tenant a house located on King County Tax Parcel No. 6000000062,
located at 324 1/2 Naden Avenue South, Kent, WA 98032, and legally described in Attachment
"A" attached and incorporated into this Lease (the"Premises").
2. PURPOSE
Tenant owned the Premises for approximately 30 years. Owner purchased the Premises
and grants this lease so that Tenant will be able to use the proceeds from sale to purchase a
different home. Owner has no interest in the improvements on the Premises other than to provide
the Tenant, as former owner, continued use of his current home until Tenant finds another
residence. Tenant has agreed to vacate the premises no later than June 1, 2017. Once Tenant
vacates the Premises, Owner has no further use for the improvements existing on the Premises and
intends to remove them.
3. USE
Tenant will use the Premises for personal residence purposes only. No use will be made of
Premises, or act done in or about Premises, which is illegal, unlawful, violates zoning codes, or
which will increase the existing rate of insurance for the Premises. Tenant will not commit, or allow
to be committed upon the Premises, any waste or any public or private nuisance. Tenant will
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 will begin upon the first day following Closing of the sale of the
Premises between Owner, as buyer, and Tenant, as seller. The sale was closed on February 28,
2017. This Lease will continue on a month-to-month basis until June 1, 2017. Tenant may
terminate this Lease sooner, at Tenant's sole discretion.
4. RENT
As part consideration of the sale of the Premises from Tenant to Owner and to give Tenant
the time to use the proceeds of his home to locate and purchase a new home, Owner will allow
Tenant to live rent-free on the Premises through the term of the Lease.
6. RE-DELIVERY
Tenant's obligation to vacate the Premises no later than June 1, 2017, is an important
promise that formed, in part, the basis for the Owner's purchase from the Tenant and for this
Lease. Tenant will not hold over and will vacate no later than June 1, 2017, unless the Tenant and
the Owner mutually agree, in writing, to extend the leasehold term. Tenant, at the expiration of
the term in Section 3, or upon any sooner termination of this Lease, will, without notice from
Owner, vacate the Premises peaceably, quietly, and will leave the Premises in as good order and
condition as the same now are.
7. TENANT'S OBLIGATIONS
A. Utilities: Tenant will pay, when due, all utilities (water, sewer, gas, garbage,
electricity, etc.). It is the obligation of the Tenant to continue utilities services at the beginning of
tenancy. Tenant is to pay the utility company directly. The Tenant is obligated for all utilities until
the last day of tenancy. Tenant will cause no liens of record to be placed upon the Premises
because of delinquent utility charges.
B. Operation of Appliances: Tenant will properly use and operate all electrical, gas,
heating, and plumbing fixtures as well as appliances supplied by the Owner on the Premises.
C. Appliances: Tenant will promptly repair any appliances if the malfunction was
caused by Tenant.
D. Broken Glass: Tenant will promptly replace any glass that is broken as a result of
the Tenant and his/her guest(s).
E. Yard: Tenant will, at his/her expense, maintain the yard in the same or better
condition as at the beginning of this Lease.
F. Utility System: Tenant will protect the plumbing system from freezing and
maintain the heating system, which includes regular changing of the furnace filters if applicable.
G. Regular Maintenance: Regular maintenance of faucets, pipes, gutters, furnace,
roof, and chimney is the Tenant's obligation year round. Regular maintenance of the roof will
include work such as annual pressure washing and replacement of loose or missing shingles.
H. Paint: Maintenance of interior surfaces will be the responsibility of the Tenant.
I. Dangerous Conditions: Tenant will immediately notify the Owner of any
dangerous condition that might lead to the impairment of the value of the Premises.
J. Insurance: Tenant will procure and maintain renter's insurance in connection with
Tenant's use of the Premises and will provide Owner a copy upon request.
8. EXCEPTIONS FROM LEASE:
The following items will not be repaired or replaced by the Owner and remain on the
Premises only for the convenience of the Tenant: all out buildings and personal property of any
kind placed anywhere on the yard outside the perimeter of the residence
9. OWNER OBLIGATIONS:
Owner agrees to maintain the Premises according to the laws of the State of Washington
and Federal agencies. However, if a defective condition was caused directly or indirectly by the
Tenant, his/her family, guest, licensee, or any other person(s) acting under the control, direction
of, or with the permission of the Tenant, the Owner will have no obligation to repair that defect,
and the Tenant will immediately repair the defect at Tenant's cost. The Tenant will have no
defense against the Owner to remedy the defective condition. This applies also where Tenant
unreasonably fails to notify the Owner of the condition or allow Owner access to the Premises for
the purpose of repair.
10. ALTERATIONS
All alterations, additions and improvements that are made, will be at the sole cost and
expense of Tenant. All improvements will 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 remove at termination. If the Tenant performs work with the consent
of the Owner, Tenant agrees to comply with all laws, ordinances, rules, regulations of the
appropriate governing authority. The Tenant further agrees to save the Owner free and harmless
from damage, loss or expense arising out of that work.
11. INDEMNIFICATION/HOLD HARMLESS
Tenant will defend, indemnify and hold the 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, including the Tenants
permissive use of any subtenants or invitees on the Premises, except for injuries and damages
caused by the sole negligence of the Owner. The provisions of this Section will survive the
expiration or termination of this Lease.
12. LIENS
Tenant will keep the leased Premises free from any liens arising out of any work performed,
materials furnished, or obligations incurred by Tenant.
13. ASSIGNMENT
Tenant will not assign this Lease or any part thereof. Tenant will not let or sublet the home
on the Premises. This Lease will not be assignable by operation of law.
14. ACCESS
Tenant will allow Owner or Owner's agents free access at all reasonable times to the
Premises for the purposes of inspection. This right will not be construed as an agreement on the
part of the Owner to make repairs, additions, or alterations.
15. DAMAGE OR DESTRUCTION. REPAIR OR REPLACEMENT
In the event the Premises is damaged to the extent as to render the Premises untenantable
in whole or in substantial part, or is destroyed, the Tenant will give Owner or Owner's agent
immediate written notice, and, it will be the Owner's option to repair or rebuild the same. Owner
will have not more than thirty (30) days after date of the notification to notify the Tenant in writing
of Owner's intentions to repair or rebuild the Premises, or the part damaged. If Owner elects to
repair or rebuild the Premises, Owner will prosecute the work of repairing or rebuilding without
unnecessary delay. If Owner elects not to repair or rebuild the Premises this Lease will be
terminated and Owner will not be obligated to provide Tenant another facility to lease.
16. NOTICES
All notices to be given by the parties will 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 will be mailed to the addresses below, or a
later changed addressed provided in writing to the party:
OWNER:
City of Kent
ATTN: Kurt Hanson
Economic & Community Development Department
220 Fourth Avenue South
Kent, WA. 98032
TENANT:
David L. Ball
324 1/2 Naden Avenue S
Kent, WA. 98032
17. DEFAULT AND RE-ENTRY
If Tenant violates, defaults or does not comply with any of the material covenants,
agreements or provisions of this Lease, the Owner may cancel this Lease upon giving the notice
required by law and re-enter the Premises, using as much force as may be required.
The failure of the Owner to insist upon strict performance of any of the covenants and
agreements of this Lease, or to exercise any option conferred in any one or more instances, will not
be construed to be a waiver or relinquishment of any of the covenants or agreements in this Lease,
and the same will 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 the Owner to use
an attorney, or if Tenant will bring any action for any relief against Owner, declaratory or
otherwise, arising out of this Lease, each party will be responsible to pay its own attorney fees and
costs.
19. REMOVAL OF PROPERTY
In the event of any entry in, or taking possession of, the Premises, the Owner will have the
right, but not the obligation, to remove 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 owner of the personal property, with the right to sell the stored
property in accordance with Chapter 59.18 RCW.
20. HEIRS AND SUCCESSORS
Subject to the provision hereof pertaining to assignment and subletting, the covenants and
agreements of this Lease will be binding upon the heirs, legal representatives, successors and
assigns of any or all of the parties to this Lease.
21. HOLDOVER
If the Tenant will, without the written consent of Owner, holdover after the expiration of the
term of this Lease, the tenancy will be for an indefinite period of time on a month to month
tenancy, and the tenancy may be terminated as provided by the laws of the State of Washington.
During any holdover tenancy, Tenant agrees to pay to the Owner Fifteen Hundred dollars
($1500.00) per month of the rent paid prior to Tenant holding over plus 100% leasehold tax on the
rent and to be bound by all of the terms, covenants, and conditions of this Lease, so far as
applicable.
The foregoing conditions are mutually agreed to by the Owner and the Tenant.
T NA (5)n OWNER:
CITY OF K NT
Prin e: David L. All Print . Suzette Cooke
Its o
Date Date: � 7 f 7
STATE OF WASHINGTON
ss.
COUNTY OF KING
On this 'Z day of before me a Notary Public in and for the
State of Washington, personaHy appeared DANjo (,. . 5A.UL. I
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-
j �REOF, I have hereunto set my hand and official seal the
day and ritten.
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NOTARY PUBLIC, in and for the State
11111 OF WX5\XX of Washington, residing at
My appointment expires
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 acknolwledg!ed 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-
IN WITNESS WHEREOF, I have hereunto set my hand and official seal the
day and year first above written.
RIG, it/ V
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All
NOTARY PUBLIC, in and for the State
of Washington, residing at
(P y evp 0 My appointment expires
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W�41
Attachment A
LEGAL DESCRIPTION
THE EAST 125 FEET OF THE FOLLOWING DESCRIBED TRACT, MEASURED PARALLEL TO THE EAST LINE
THEREOF;
THAT PORTION OF GOVERNMENT LOT 7, SECTION 24,TOWNSHIP 22 NORTH, RANGE 4 EAST, W.M., IN
KING COUNTY,WASHINGTON, DESCRIBED AS
FOLLOWS:
BEGINNING AT A POINT ON THE WEST MARGINAL LINE OF THE RIGHT OF WAY OF THE SEATTLE TACOMA
INTERURBAN RAILWAY WHICH IS 858.00 FEET SOUTH OF THE SOUTH MARGINAL LINE OF MEEKER
STREET IN THE CITY OF KENT;
THENCE WEST354.41 FEET TO NADEN AVENUE;
THENCE SOUTH ALONG NADEN AVENUE,A DISTANCE OF 66 FEET;
THENCE EAST TO THE WEST MARGINAL LINE OF RIGHT OF WAY OF SAID RAILWAY;
THENCE NORTHERLY ALONG SAID RIGHT OF WAY A DISTANCE OF 66.45 FEET, MORE OR LESS,TO POINT
OF BEGINNING;
EXCEPT PORTION TAKEN FOR STATE HIGHWAY BY KING COUNTY SUPERIOR COURT CAUSE NO. 656683;
(ALSO KNOWN AS THE EAST 125 FEET OF LOT 6, NADEN E.H. GARDEN TRACTS, UNRECORDED).
Tax Parcel Number: 600000006202
Situs Address: 324 1/2 Naden Avenue S, Kent,WA 98032
REQUEST FOR MAYOR'S SIGNATURE
Print oln Cherry-Colored Paper
KENT
Routing Information,
(ALL REQUESTS MUST FIRST BE ROUTED THROUGH THE LAW DEPARTMENT)
Approved by Director
Originator: Cheryl Rolcik-Wilcox Phone (Originator): x5771
Date Sent: 3/3/17 Date Required: 3/3/17
Return Signed Document to: Cheryl Roldk-Wilcox Contract Termination Date: 6/1/17
VENDOR NAME: Date Finance Notified,
Only required on contracts n/a
David L. Ball $20,000 and over or on any Grant)
DATE OF COUNCIL APPROVAL: 12/13/16 Date Risk Manager Notified:3,/2/17
Required on Non-City Standard Contracts/Agreernents)
Has this Document been Specifically Account Number: n/a
Authorized in the Budget? QYES W NO
!�J
Brief Explanation of Document:
Lease black to David Ball of property purchased from Mr. Ball on 2/28/17.
L.I V L.Lop
All Contracts Must Be Routed Through The Law DepartmLA' C 7"—1 VL D
M7,--77-
(This area to be completed by the Law Department)
f a
Received: kV`E 8017
APPIZNV=D D E P T/. -
Law � 0 Q�!-Gr-1451114:
Date Forwarded to Mayor: 31aT7—
Shaded Areas To Be Completed By Administration Staff
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