HomeMy WebLinkAboutLease LAG-11-004
LEASE
This Lease is made and entered into this a day of 2011, by and between the
City of Renton ("City"), a municipal corporation, and Birthday dreams, a nonprofit corporation
("Tenant").
1. LEASE: The City does hereby lease to Tenant Suite 200 of that certain real
property located at 1119 Bronson Way N, Renton, WA 98055, commonly known as the "Liberty
Park Building". The floor plan of the property is shown on Exhibit A, attached hereto and
incorporated by reference as if fully set forth.
2. TERM: This Lease shall be for an initial term of two (2) years from the date of
signing, unless otherwise terminated pursuant to the termination section of this Lease. After
the initial two (2) year term of this Lease, it shall be automatically renewed twice for an
additional one (1) year period of time, unless notice of termination is given by the City or the
Tenant, pursuant to the termination section of this Lease, such notice given at least sixty (60)
days prior to the end of the term of this Lease.
3. LEASE PAYMENTS:
A. Monthly Lease Payment: Tenant agrees to pay unto the City as rental for
the premises, a monthly payment of six hundred dollars ($600), plus excise tax of seventy-seven
dollars and fifty cents ($77.50) for the first floor of Suite 200 for a total monthly payment of Six
Hundred Seventy Seven dollars and 50 cents ($677.50), payable in advance on the first day of
each and every calendar month during the term of this lease at such place as the City shall
designate from time to time in writing. Tenant may obtain, on an annual basis, a non-profit
excise tax exemption certificate from the Department of Revenue, and as long as this certification
is provided to the City and in force,Tenant will be exempted from paying the excise tax portion of
the monthly payment. Rental for any period during the term of this Lease which is less than one
(1) month shall be paid in a pro rata portion of the monthly lease payment installment amount.
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B. Monthly Lease Payment Adiustment: Commencing A 2012, and every
year thereafter during the term of the lease, there shall be an adjustment in the monthly lease
payment sum to reflect the change in the Consumer Price Index of the U.S. City Average, All
Items Index(1982-84= 100)for all urban consumers as compiled by the Bureau of Labor Statistics
of the United States Department of Labor. The base period for the determination of the change
in the Consumer Price Index will be the twelve (12) month period ending 2011. The
monthly lease payment adjustment shall be on the basis of the percentage change of the
Consumer Price Index between Aar 2011, and Tuly P .2012 and the corresponding
month of each year period thereafter. In no event will the monthly lease payment be less than
the amount agreed for the initial lease period. If at the time of monthly lease payment
adjustment the Index is no longer published,the parties shall adopt for use such other index as is
then generally recognized and accepted for similar determinations of purchasing power.
C. Additional Charges: This Lease is what is commonly called a "full service
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lease", it being understood that the City shall receive the monthly lease payment set forth above
free and clear of any and all impositions,taxes, real estate taxes,liens,charges or expenses of any
nature whatsoever in connection with the ownership and operation of the premises. The
monthly rent shall include utilities, routine maintenance, HVAC, and janitorial services as
determined by the City. It is also understood by the Tenant that due diligence shall be taken at all
times to avoid excessive use of utilities, and that Tenant shall not make use of supplemental
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heating or cooling devices, or alter the temperature set points made by the City in conformance
with the State Energy Code. It is the intention of the parties hereto that this Lease shall not be
terminable for any reason by the Tenant and the Tenant shall in no event be entitled to any
abatement of or reduction in monthly lease payments payable hereunder, except as herein
expressly provided. Any present or future law to the contrary shall not alter this agreement of
the parties.
D. Late Charges: Tenant hereby acknowledges that late payment by Tenant
- to the City of monthly lease payment and other sums due hereunder will cause Tenant to incur
costs not contemplated by this Lease, the exact amount of which will be extremely difficult to
ascertain. Such costs include, but are not limited to, processing and accounting charges, and late
charges which may be imposed on the City by the terms of any mortgage or trust deed covering
the premises. Accordingly, if any monthly lease payment installment or any other sum due from
Tenant shall not be received by the City or the City's designee within five (5) days after written
notice that said amount is past due, then Tenant shall pay to the City a late charge equal to five
percent (5%) of such overdue amount. The parties hereby agree that such late charge represents
a fair and reasonable estimate of the cost the City will incur by reason of late payment by Tenant.
Acceptance of such late charge by the City shall in no event constitute a waiver of Tenant's
default with respect to such overdue amount, nor prevent the City from exercising any of the
other rights and remedies granted hereunder.
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4. DEFAULTS/REMEDIES:
A. Defaults: The occurrence of any one or more of the following events shall
constitute a default and breach of this Lease by Tenant:
(i) The vacating or abandonment of the premises by Tenant.
(ii) he failure b Tenant) y to make any payment of rent or any other
payment required to be made by Tenant hereunder, as and when due, where such failure shall
continue for a period of three (3)days after written notice thereof from the City to Tenant.
(iii) The failure by Tenant to observe or perform any of the covenants,
conditions or provisions of this Lease to be observed or performed by Tenant, other than
described above, where such failure shall continue for a period of thirty (30) days after written
notice thereof from the City to Tenant; provided, however, that if the nature of Tenant's default
is such that more than thirty(30) days are reasonably required for its cure,then Tenant shall not
be deemed to be in default if Tenant commenced such cure within said thirty(30) day period and
thereafter diligently prosecutes such cure to completion,
(iv) The making by Tenant of any general assignment, or general
arrangement for the benefit of creditors;
(v) The filing by or against Tenant of a petition to have Tenant
adjudged a bankrupt or a petition for reorganization or arrangement under any law relating to
bankruptcy (unless, in the case of a petition filed against Tenant, the same is dismissed within
sixty(60)days;
(vi) The appointment of a trustee or receiver to take possession of
substantially all of Tenant's assets located at the premises or of Tenant's interest in this Lease
where possession is not restored to Tenant within thirty(30)days;
(vii) The attachment, execution or other judicial seizure of substantially
all of Tenant's assets located at the premises or of Tenant's interest in this Lease, where such
seizure is not discharged within thirty(30)days.
B. Remedies in Default: In the event of any such default or breach by Tenant,
the City may at any time thereafter, with or without notice or demand and without limiting the
City in the exercise of any right or remedy which the City may have by reason of such default or
breach:
0) Terminate Tenant's right to possession of the premises by any
lawful means, in which case this Lease shall terminate and Tenant shall immediately surrender
possession of the premises to the City. In such event the City shall be entitled to recover from
Tenant all damages incurred by the City by reason of Tenant's default including, but not limited
to, the cost of recovering possession of the premises; expenses of reletting, including necessary
renovation and alteration of the premises, reasonable attorney's fees, and any real estate
commission actually paid; the worth at the time of award by the court having jurisdiction thereof
of the amount by which the unpaid monthly lease payment for the balance of the term after the
time of such award exceeds the amount of such rental loss for the same period that Tenant
proves could be reasonably avoided; the accelerated balance of unpaid rental due during the
remainder of the Lease term; and that portion of the leasing commission paid by the City
applicable to the unexpired term of this Lease. Unpaid monthly lease payment installments or
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other sums shall bear interest from the date due at the rate of twelve percent (12%) per annum.
In the event Tenant shall have abandoned the premises, the City shall have the option of (1)
retaking possession of the premises and recovering from Tenant the amount specified in this
subparagraph (I),or(2)proceeding under subparagraph (ii) below.
(ii) Maintain Tenant's right to possession,in which case this Lease shall
continue in effect whether or not Tenant shall have abandoned the premises. In such event, the
City shall be entitled to enforce all of the City's rights and remedies under this Lease,including the
right to recover the monthly lease payment as it becomes due hereunder.
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(iii) Pursue any other remedy now or hereafter available to the City
under the laws or judicial decisions of the State in which the premises are located.
C. Default by the City: The City shall not be in default unless the City fails to
perform obligations required of the City within a reasonable time, but in no event later than thirty
(30) days after written notice by Tenant to the City specifying wherein the City has failed to
perform such obligation; provided, however,that if the nature of the City's obligation is such t
y g that
more than thirty(30)are required for performance then the City shall not be in default if the City
commences performance within such thirty (30) day period and thereafter diligently prosecutes
the same to completion.
S. GENERAL LEASE PROVISIONS:
A. The City shall provide routine janitorial services for the premises.
B. Portions of the facility are indicated as "common area" on Exhibit A,
including the large conference room, restrooms, and also the parking lot on the premises.
Tenant shall have secondary use of the large conference room for its temporary uses; primary
use is held by the Renton Community Foundation (RCF) for its monthly Board meetings.
"Temporary" refers to daily uses in which the conference area is returned to its open
configuration at the end of the business day. If the RCF vacates and their leased space is then
leased to another tenant, Tenant may no longer have use of the conference room of the
"common area" depicted in Exhibit A. Should this occur, City shall construct a demising wall
separating the large conference space, as depicted in Exhibit B, attached hereto and
incorporated by reference as if fully set forth, providing secure entry provisions.
C. Tenant shall provide its own furniture.
D. Tenant may provide signage at its own expense; however, the design,
size,and location must be preapproved in writing by the City.
E. There shall be no reserved parking spaces; parking is first-come, first-
served basis.
F. Tenant can make no building changes or alterations without the advance
written approval of the City, and all such changes and alterations shall be entirely paid for by
the Tenant.
6. TERMINATION:
A. Voluntary by Tenant: Tenant may terminate this Lease, after its initial
two (2)year term, by giving the City sixty(60) days notice prior to the termination date. Tenant
shall also have the right to terminate this tenancy upon any extended term, by giving notice of
intent to terminate the tenancy at least sixty(60)days prior to the end of any extended term.
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B. Voluntary by City: The City may terminate this Lease by the giving of
ninety (90) days notice of intent to terminate the Lease before the expiration of the initial two
(2)year term, or any extended term.
C. At the time of termination, the facility shall be restored to original
condition, less typical wear and tear, unless the City agrees to accept it "as-is" and with
advanced written approval.
7. RIGHT OF INSPECTION: Tenant will allow the City, or the City's agent, free access
at all reasonable times to the premises for the purpose of inspection, or of making repairs,
additions or alterations to the premises, or any property owned by or under the control of the
City. The City will give Tenant notice at least twenty-four (24) hours before accessing the
property.
8. INSURANCE AND HOLD HARMLESS: Tenant shall defend, indemnify, and hold
harmless the City, its officers, officials, employees and volunteers from and against any and all
claims, suits, actions, or liabilities for injury or death of any person, or for loss or damage to
property, which arises out of Tenant's use of premises, or from the conduct of Tenant's
business, or from any activity, work or thing done, permitted, or suffered by Tenant in or about
the premises, except only such Injury or damage as shall have been occasioned by the sole
negligence of the City.
Tenant shall maintain Commercial General Liability Insurance in the amount of not less
than one million dollars ($1,000,000) each occurrence, with two million dollars ($2,000,000)
general aggregate, and property insurance covering the full value of Tenant's property and
Improvements with no coinsurance provisions.
Tenant shall name the City as a Primary and Non-Contributory Additional Insured on the
policy(ies) and shall provide to the City the endorsement page(s) from the policy(les),
evidencing Primary and Non Contributory coverage.
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DATED: g±
CITY OF RENTON:
By: � II
Mayor Denis Law
ATTEST:
By: LUaxtt r_
Bonnie I.Walton, City Clerk
TENANT: Birthday Dreams
By:
Chris Spahn, Exec tive Director
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