HomeMy WebLinkAboutL16-072 - Extension - Kent Hill, LLC - East Hill K2 Police Substation - 08/01/2021 FOR CITY OF KENT OFFICIAL USE ONLY
Sup/Mgr:
Agreement Routing Form DirAsst:
• For Approvals,Signatures and Records Management Dir/Dep:
KENT This form combines W replaces the Request for Mayor's Signature and Contract Cover (optional)
WASHINGTON Sheet forms. (Print on pink or cherry colored paper)
Originator: Department:
Jalene King Police 0
Date Sent: Date Required:
> 04/20/2022 ASAP
0
A. Authorized to Sign: Date of Council Approval:
CL
QMayor or Designee 4/19/2022
Budqet Account Number: Grant? Yes No[]
10002331.64520.3300
Type: N/A
Budget?❑Yes ONO
Vendor Name: Category:
Kent Hill LLC Contract
Vendor Number: Sub-Category:
c 36979
$rigit rai-
Project Name: East Hill K2 Substation Lease
cProject Details: Rental of space for East Hill K2 Substation
4—
c
40 c
Basis for Selection of Contractor: Other
Agreement Amount: $1,800+/CT10 *Memo to Mayor must be attached
a
i Start Date: 8/1/2021 Termination Date: 7/31/2026
1711
Q Local Business?❑Yes[:]No*If meets requirements perKCC3.70.100,pleasecomplete'VendorPurchase-Local Exceptions"form onCityspace.
Business License Verification: El Yes❑In-ProcessFExempt(KCC 5.01.045)
Notice required prior to disclosure? Contract Number:
Yes❑No
Comments:
Please let Jalene know when hard copies are ready for pick up as the Lessor
irequested 2 signed and notorized and back to e Thank you;/
3
0
3 cc APR 2 0 2022
a,
> KENT LAW DEPT.
40
cc
Date Received:City Attorney: Date Routed:Mayor's Office City Clerk's Office I/o
adccW22373_1_20 Visit Documents.KentWA.gov to obtain copies of all agreements rev.20210513
CITY CLERK
CITY OF KENT
220 4t' Avenue South
K E N T Kent, WA 98032
W A H I NGTON 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:
1. Responsible Department/Division: Police
2. Contact Person and Title: Jalene King Administrative Assistant III
Telephone Extension: 5890
Lease Agreement Cover Sheet—Page 1 of 5
3. Tenant (Customer) Name: Kent Hill, LLC
4. Tenant (Customer) Number: 36979
5. General Ledger Account Number: 1000.2331.64520.3300
6. King County Tax Parcel Number: ?
7. Address of Parcel: 25635 10411 Ave SE
8. Type of Lease: Substation
9. Council Authorization Date: 4/19/2022
10. Mayor Signature Date:
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: 8/1/2021
12. Tenant Lease Option Renewal Notification Due Date:
13. Lease Termination Date: 7/31/2026
14. Lease Duration: 60 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=1 00 Not Seasonally Ad"usted 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: $1,800 + controllable expenses = $2,581.72
16. Rent Due Date: 1st of the month
17. Calculation of Rental Increase(s): 2%
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:l/dor.wa.. ov/docs/_Pubs IndustSpecific/Leasehold.Rdf). 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 - ❑THER LEASE CONSIDERATIONS:
N/A
Lease Agreement Cover Sheet—Page 5 of 5
LEASE
EXTENSION AGREEMENT
THIS LEASE EXTENSION AGREEMENT is made and entered into by and between
Henry and Maureen Buys Family Trust and Kent Hill LLC, Tenants in Common("Landlord")
and the City of Kent, a Washington Municipal Corporation(hereinafter referred to as, "Tenant").
RECITALS
A. WHEREAS,Kent Hill LLC and the City of Kent entered into that certain Shopping
Center Lease dated August 4th,2016 (hereinafter referred to as the "Lease"), covering certain
store Premises containing approximately 1,274 rentable square feet, located in the Kent East Hill
Shopping Center, City of Kent, County of King, State of Washington,more commonly known as
25635 104th Ave SE. Kent. Washington 98030, and more particularly described in the Shopping
Center Lease, (hereinafter referred to as the `Premises')
B. WHEREAS,the Lease Term expired on July 31, 2021; and
C. WHEREAS,Landlord and Tenant desire to extend the term of the Lease and to
provide for the rental amounts to be paid during the Extension Period, defined herein.
NOW, THEREFORE, for good and valuable consideration including the mutual
agreements contained herein,it is hereby agreed by and between Landlord and Tenant that the
Lease is amended as follows:
1. Landlord and Tenant agree that the term of this Lease shall be extended for a period
commencing August 1, 2021 and expiring on July 31, 2026 (the"Extension Period").
The extension is in replacement for and in lieu of any other options(or extensions) as are
otherwise set forth in the Lease. Except as expressly set forth herein,no other options or
extension are available or granted to Tenant.
2. Tenant shall pay to Landlord as fixed Minimum Rent during the Extension Period,
payable as follows:
(i) For the period of August 1,2021,through July 31, 2022, fixed Minimum Rent
shall be payable in monthly installments of One Thousand Eight Hundred Dollars
($1,800.00)on the first day of each month throughout such period commencing
August 1, 2021.
(ii) For each subsequent year, of the extended term the fixed Minimum Rent will be
increased by two(2)percent over the previous year.
3. In addition to the fixed Minimum Rent due during the Extension Period, as set forth in
Paragraph 2 above,Tenant shall pay all items of Additional Rent, and other charges
required to be paid pursuant to the Lease.
4. All capitalized terms, if not defined in this Lease Agreement, shall have the same
meaning as defined in the Lease. Wherever the term, "term of this Lease" or"Lease
Term"or similar phrase is used in the Lease, such term or phrase shall be deemed to
include the Extension Period.
5. AGENCY DISCLOSURE: Westlake Associates, Inc. represented the Landlord. Landlord
and tenant each confirm the prior oral and/or written disclosure of agency was provided
to each Party in this transaction(WAC 308-124D-040)
6. COMMISSION: Tenant specifically agrees that there are no real estate brokers involved
in this proposed lease except for Westlake Associates, Inc. Landlord shall be responsible
for paying the commission to Westlake Associates, Inc.
7. Except as expressly modified herein, all of the provisions of the Lease shall remain
unmodified and in full force and effect.
8. Counterparts and Signatures by Fax or Email. This Lease Extension Agreement may be
executed in any number of counterparts, each of which shall constitute an original, and all
of which will together constitute this one Lease Extension Agreement. Further,upon
executing this Lease Extension Agreement, either party may deliver the signature page to
the other by email and that signature shall have the same force and effect as if the
Agreement bearing the original signature was received in person.
IN WITNESS,the parties below execute this Lease Extension Agreement,which shall
become effective on the last date entered below. All acts consistent with the authority of
this Lease Extension Agreement and prior to its effective date are ratified and affirmed,
and the terms of the Lease Extension Agreement shall be deemed to have applied.
Henry and Maureen Buys Family Trust City of Kent, a Washington municipal
and Kent Hill LLC,Tenants in Common corporation
By: By: 1
Its: Ivti�ti&c; N � Its: 1 t
STATE OF WASHINGT((ON
COUNTY OF �1
This record was acknowledged before me on J r�� l ��, 20�, by mad sec IS
bF�f t141 -LC,
j�..'+r•���•�' Notary Pu is for the State oftwbifigton
�p�pRY
Z My commission expires:
�.�p`
~' voff �� �y�:
3
+•l� M�SIGN •��\�.-
STATE OF WASHINGTON
COUNTY OF K'�
This record was acknowledged before me an 20�, by v�Yla �C as
ofl tl
EXQ
NN
►�'��!►� (ACC�1+it
0$�`ti��1�11►y11 �� Notary Public for the State o Wubington
saDOl;a.r My commission expires: 01
s
i tp i ,YL%4 = _S
�r"1j,j0F`WASH!Z—*-
1111"
STATE OF WASHINGTON
COUNTY OF
This record was acknowledged before me an 20_, by as
of
Notary Public for the State of Washington
My commission expires:
STATE OF WASHINGTON
COUNTY OF
This record was acknowledged before me on 20_, by as
of
Notary Public for the State of W ashi nglon
My commission expires: