HomeMy WebLinkAboutLease 5'i.
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LAG-12-005
LEASE AGREEMENT
THIS LEASE is made and entered into this_7th_day of November ,
2012, between THE CITY OF RENTON, a noncharter code city under RCW 35A, and a
Washington municipal corporation("Renton"), and the RENTON HOUSING AUTHORITY, a
Washington municipal corporation("RHA"),hereinafter collectively referred to as,the "Parties."
Recitals
WHEREAS, Renton owns certain real property located at 19415 Talbot Road South, Zip
Code 98055, Renton, Washington, which is legally described in Exhibit A attached hereto and
incorporated by reference (hereinafter"Property");
WHEREAS, RHA is a municipal corporation organized and existing under the laws of the
State of Washington for the purpose of providing affordable housing to low income families; and
WHEREAS, Renton desires to lease to RHA, and RHA desires to lease from Renton, the
Property with the intent that RHA will undertake certain repairs to the Property and sublease the
Property to persons qualified for affordable housing.
NOW, THEREFORE,the Parties agree as follows:
1. Description, Term,Rent,Use.
1.1 Lease of Property. Renton hereby leases to RHA and RHA hereby leases from
Renton the Property, legally described in Exhibit A, together with all rights, privileges,
appurtenances and easements pertaining or relating thereto subject to the terms stated in this Lease.
1.2 Excluded Areas of Access. RHA and its subtenants shall not enter, use, alter, or
deface the barn located on the Property.Renton shall take reasonable efforts to secure the barn from
unauthorized entry and RHA shall take reasonable efforts to ensure that only those agents or Renton
authorized individuals enter, use, alter or maintain the barn. The term "Property" as used in this
Lease shall not include the barn.
1.3 Use of Property. RHA shall use the Property solely for the purpose of providing
affordable housing to qualified subtenants. RHA agrees that in the use and occupation of the
Property,RHA and its subtenants will comply with all laws,ordinances,orders and regulations of the
federal, state, county and city authorities. RHA covenants that it will not use or permit to be used
any part of the Property for any dangerous, noxious or offensive business or activity, and will not
cause or maintain any nuisance in, at, or on the Property.
1.4 Necessary Improvements to the Property.The Parties acknowledge that significant
repairs and improvements to the Property as described in Exhibit S attached hereto and incorporated
by this reference will be necessary in order to meet the minimum quality and safety standards for
RHA subtenants. An estimate of the costs and expenses of the required repairs and improvements
433270.2 1360099 10042 -1-
contemplated under this Lease is included in Exhibit B. The costs to be incurred by RHA in
connection with the repairs and improvements described in Exhibit B shall be treated as additional
rent for the Property which the Parties agree represents fair and reasonable consideration in support
of this Lease.
RHA has inspected the Property and accepts the same in its present condition as being
suitable for the intended use contemplated in this Lease.
1.5 Term. The initial term of this Lease shall commence on the date of this Lease
("Commencement Date")and,unless sooner terminated or canceled as provided herein,shall expire
three(3)years after the Commencement Date. After the initial 3-year term of this Lease,the Lease
shall be automatically renewed for successive one (1) year periods, unless written notice of
termination is given by Renton or RHA at least sixty(60)calendar days prior to the end of the initial
3-year term of this Lease or any extended term.
1.6 Rent. The annual rent to be paid by RHA during the initial 3-year term of this Lease
shall be $1.00 per year,plus any applicable leasehold taxes. The rent shall be payable annually on
the first day of the year. Once the actual costs and expenses of the repairs and improvements
described in Exhibit B are known,and the value of such repairs and improvements are verified and
agreed to by the parties,in lieu of the$1.00 in rent RHA shall thereafter pay to Renton the actual rent
it receives from RHA's subtenant on a monthly basis,less a normal and customary administration fee
to be retained by RHA not to exceed 10 percent of the tenant —per month.Renton acknowledges
and accepts that the rental amount established for RHA's subtenant will conform to RHA's schedule
for low-income housing and that the subtenant will be subject to pre-qualification by RHA.
1.7 Consideration. RHA's consideration to Renton for RHA's use of the Property, as
described in section 1.1, and limited in section 1.2, shall be the Rent, described in section 1.6, and
the Necessary Improvements to the Property, described in section 1.4.
2. Utilities.
RHA or its subtenant shall be responsible to pay when due all charges for electricity, gas,
sewage disposal, water, telephone and other utility services used on the Property and RHA shall
indemnify and hold Renton harmless against any liability on any such accounts.
3. Insurance, Risk, Indemnification.
3.1 Insurance. Renton shall, at Renton's sole cost and expense, keep the Property,
including any structures and fixtures therein,insured in an amount not less than one hundred percent
(100%) of the full insurable replacement value thereof, against loss or damage by fire (including
extended coverage),glass breakage,windstorm and water damage. The term"full insurable value"
shall mean actual replacement value.
3.2 Liability Insurance. RHA, at the RHA's sole cost and expense, shall maintain
general public liability insurance against claims for personal injury, death or property damage
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occurring upon,in,or about the Property,such insurance to afford protection to the limits of not less
than One Million Dollars($1,000,000.00)per occurrence with an aggregate coverage of not less than
One Million Dollars ($1,000,000.00) per year. Renton shall be named as an additional insured for
any damages, claims, causes of action or other actions caused by RHA's, or its subtenants', use of
the Property.
3.3 Waiver of Subrogation.Renton and RHA hereby mutually release each other from
liability and waive all right of recovery against each other for any loss from perils insured against,
but only to the extent insured against under, and in the amount actually received from, their
respective insurance policies,including any extended coverage and endorsements thereto;provided,
however,that this paragraph shall not be applicable if it would have the effect,but only to the extent
that it would have the effect,of invalidating any insurance coverage of Renton or RHA. The Parties
agree to exercise their best efforts to obtain a subrogation waiver from their respective insurance
carriers and both Parties agree to give notice to their respective insurance carriers that the foregoing
mutual waiver of subrogation is in this Lease.
3.4 Waiver/Indemnity. Except as expressly herein provided,Renton shall not be liable,
and RHA waives all claims for damages to persons or property sustained by RHA or RHA's
employees, agents and subtenants resulting from the Property or by reason of the Property, or any
persons present on the Property for any purpose, or resulting directly or indirectly from any act or
neglect of any tenant or other person, except Renton, its officers, employees or agents.
RHA shall indemnify and hold Renton harmless from any and all claims, damages and
expenses, including reasonable attorney's fees and litigation costs for the defense, arising from or
incident to the activities conducted by RHA or RHA's subtenants, or from any breach or default of
RHA in the performance of any of its obligations hereunder,or from any act of negligence of RHA,
its agents, contractors, employees,tenants,or licensees,in or about the Property. If any such claim
or action within this paragraph is brought against Renton,RHA shall defend it by counsel reasonably
satisfactory to Renton.
Renton agrees to maintain a suitable barrier on the Property in order to separate the house on
the Property from the culvert that crosses the adjacent road in order to mitigate the risk that a person
could fall into the culvert. Renton shall indemnify and save RHA harmless from any and all claims,
damages and expenses, including reasonable attorney's fees and litigation costs for the defense,
arising from or incident to the activities conducted by Renton, or from any breach or default of
Renton in the performance of an of its obligations hereunder, or from an act of negligence of
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Renton, its agents,contractors, employees,or licensees, in or about the Property. If any such claim
or action within this paragraph is brought against RHA,Renton shall defend it by counsel reasonably
satisfactory to RHA.
433270.2 1360099 10042 -3-
4. Repairs and Maintenance. RHA covenants,at RHA's sole cost and expense,to take good
care of the Property, excluding the barn, and to keep the same in good order and condition, and to
make promptly all normal repairs necessary, interior and exterior, and equal in quality and class to
the original work, ordinary wear and tear excepted. RHA shall keep the Property in a clean and
orderly condition.
Renton covenants,at Renton's sole cost and expense,to perform all major maintenance and
repairs, including maintenance and repairs of the building mechanical systems, foundations,
structural components,that are not the result of abuse,waste or neglect of RHA or its subtenants.
5. Changes and Alterations by RHA. RHA shall have the right to make such improvements,
changes or alterations, structural or otherwise, to the Property or any portion thereof as RHA may
determine necessary or desirable for the uses permitted under Section 1.3 hereof,provided that RHA
shall first have obtained Renton's written consent and subject to Renton's approval of the plans and
specifications, which consent and approval shall not be unreasonably withheld.
6. Subletting and Assignment.
6.1 Subletting.RHA may sublease the Property to any persons qualifying for affordable
housing in accordance with RHA's standard procedures.
6.2 Assignment. RHA may not assign this Lease without the prior written consent of
Renton.
7. Quiet Enioyment. On payment of the Rent and performing its obligations hereunder,RHA
may quietly enjoy, have and hold the Property during the Lease term and any extension or renewal
thereof.
8. Surrender of Possession. On termination of this Lease for any reason, RHA shall, on
Renton's demand,surrender to Renton the entire Property,clean,in good order,condition and repair
except for reasonable wear and tear. On termination of the Lease for any reason,RHA shall remove
all personal property from the Property, including any property left by its subtenants.
9. Default.
9.1 Default. If RHA(1) fails to pay any Rent due hereunder within thirty(30)calendar
days after the same shall be due and such delinquency shall continue for a period of seven (7)
calendar days following written notice thereof to RHA by Renton,(2)leases the Property to a person
who does not qualify for affordable housing, (3)fails to perform any other material term,condition
or covenant of this Lease to be observed or performed by RHA, for more than thirty(30) calendar
days after written notice of such default shall have been given by Renton to RHA, or(4)abandons
the Property, then Renton, besides other rights or remedies it may have, shall have the immediate
right of re-entry to the Property.
433270.2 1360099 10042 -4-
9.2 Remedies. Should Renton elect to re-enter, as herein provided, or should it take
possession pursuant to legal proceedings or any notice provided for by law, Renton may terminate
this Lease and pursue all other remedies available at law or in equity or under this Lease,to enforce
or to remedy the breach of RHA,including but not limited to the right to recover damages and/or to
require specific performance of RHA's obligations hereunder.
9.3 Default by Renton. If Renton fails to perform any material term, condition or
covenant of this Lease on its part to be performed for more than thirty (30) calendar days after
written notice of such default given by RHA to Renton,then RHA shall have the right to terminate
this Lease upon written notice of such intention given to Renton and,in addition or in the alternative,
shall have all rights and remedies available at law or in equity or under this Lease,to enforce or to
remedy the said breach of Renton,including but not limited to the right to recover damages and/or to
require specific performance of Renton's obligations based on this Lease.
9.4 Other Rights. Nothing herein contained shall be construed to alter, affect or
eliminate any other right or remedy of Renton or RHA,at law or in equity or elsewhere provided for
in this Lease.
10. Termination.
10.1 Voluntary by RHA.RHA may terminate this Lease, at any time after the initial 3-
year term, by giving Renton a written notice of termination at least sixty (60) business days in
advance of the termination date.
10.2 Voluntary by Renton.
10.2.1 Renton may terminate this Lease at anytime during the initial 3-year term or
any subsequent 1-year terms by giving RHA a written notice of termination at least sixty (60)
calendar days in advance of the termination date. In light of the significant costs to be incurred by
RHA to repair and improve the Property for its intended use, Renton agrees not to terminate the
Lease during the initial 3-year term of the Lease until such time as RHA has recovered its costs and
expenses of the repair and improvement of the Property.
10.2.2 Renton may terminate this Lease at anytime during the initial 3-year term or
any subsequent 1-year terms if any major maintenance and repair projects become necessary and the
cost of such work exceeds Four Thousand Dollars ($4,000.00) for any single incident or project,
provided that Renton agrees not to terminate the Lease during the initial 3-year term of the Lease
until such time as RHA has recovered its costs and expenses of the repair and improvement of the
Property.
11. Right of Inspection. Renton shall have the right to inspect the Property at all reasonable
times in accordance with the standard terms of RHA's lease agreements with its subtenants and as
otherwise provided by federal and state law, including the Residential Landlord Tenant Act, RCW
59.18.
433270.2 1360099 10042 -5-
12. Notices.All notices,approvals,or other communications provided for or required under the
terms of this Lease to be given by either parry to the other shall be in writing and given or served
personally at,or by United States Mail,postage prepaid and return receipt requested,addressed to the
following:
To the City: The City of Renton
Attn.
1055 South Grady Way
Renton, WA 98055
To RHA: Renton Housing Authority
Attn. Mark Gropper, Executive Director
2900 NE 10th Street
Renton, WA 98056
or to such other addresses as either party may request in writing. Notice given by mail shall be
deemed given upon placing the same in the mail as herein above provided.Notice given in any other
manner than permitted in this Section shall be ineffectual and of no force or effect.
13. General Provisions.
13.1 Interpretation. This Lease shall be interpreted and governed in accordance with the
laws of the State of Washington. If any term provision or condition of this Lease or the application
thereof to any person or circumstance shall to any extent be invalid or unenforceable,the remainder
of this Lease or the application of such terms or provisions to persons or circumstances other than
those as to which it is held invalid or unenforceable shall not be affected thereby and each term,
provision or condition of this Lease shall be valid and enforced to the fullest extent permitted by law.
The failure of Renton to insist upon strict performance of any of the covenants and agreements of
this Lease, or to exercise any of the options herein conferred shall not be construed as a waiver or
relinquishment of any such covenant,agreement or option herein,but the same shall be and remain
in full force and effect.
13.2 Venue. Venue for any dispute arising from this Lease shall be King County Superior
Court.
13.3 Binding Effect. The terms,provisions and conditions of this Lease shall be binding
upon and inure to the benefit of Renton and RHA and their respective successors in interest,
grantees, devisees, heirs and/or assigns.
13.4 Further Assurances. The Parties shall, during the term of this Lease or any
extensions or renewals thereof,and without further consideration execute,acknowledge and deliver
to the other party such other documents and instruments, and take such other actions, as may be
reasonably requested or as may be necessary to effectuate the terms of this Lease.
433270.2 1360099 10042 -6-
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13.5 Relationship. Nothing contained in this Lease shall be deemed or construed to
create the relationship of principal and agent, or partnership,joint venture or any other association
between Renton and RHA,and no provisions in this Lease and no acts of the Parties shall be deemed
to create any relationship between the Parties other than the relationship of the landlord and tenant.
13.6 Counterparts. This Lease may be executed in more than one identical counterpart,
each of which shall be deemed an original.
13.7 Entire Undertaking. This Lease contains the entire understanding of Renton and
RHA, and Renton and RHA acknowledge that there is no other written or oral promise between
Renton and RHA with respect to the Property,and that no representations except those contained in
this Lease have been made.
13.8 Recordation. This Lease may be recorded in the real estate records of King County,
Washington.
DATED AND EFFECTIVE as of the day and year first written above.
THE CITY OF RENTON RENTON HOUSING AUTHORITY
By: J A By:
Denis Law ar Gr er
Its: mayor Its: Executive Director
Date: / Date: /1.07.;LO/Z
Attest
�w AfA,
onnie I . W to , C ty Cle
433270.2 1360099 10042 -7-
STATE OF WASHINGTON )
ss:
COUNTY OF KING )
I certify that I know or have satisfactory evidence that Denis Law is the
person who appeared before me, and said person acknowledged that he/she signed this instrument,
on oath stated that he/she was authorized to execute the instrument and acknowledged it as the
Mayor of the City of Renton,Washington to be the free and voluntary act of
such municipal corporation for the uses and purposes mentioned in the instrument.
TED:
"OSLIC NAME: .p.
Ag`)7.�� ,��,1� (Print Name) .
� ,KIA i+ Notary Public in and for the State of Washington
Commission Expires: S1 I'—)Ot
STATE OF WASHINGTON )
ss:
COUNTY OF KING )
I certify that I know or have satisfactory evidence that Mark Gropper is the
person who appeared before me,and said person acknowledged that he/she signed this instrument,
on oath stated that he/she was authorized to execute the instrument and acknowledged it as the
Executive Director of the Renton Housing Authority,King County,Washington to be the
free and voluntary act of such municipal corporation for the uses and purposes mentioned in the
instrument.
�......��� DATED:
A.
P5\�P
•0
Z:� pTARY
/Q NAME: (.s b�
(Print Name)
eq'••�.i•�,� •'• e Notary Public in and for the State of Washington
t\ OFWPs Commission Expires: o02-07-,zo16
433270.2 1 3600991 0042 -8-
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EXHIBIT A
LEGAL DESCRIPTION
19415 TALBOT ROAD SOUTH
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_ LEASE
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NEW FENCE
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Notes legend
Extent of lease for the ClevelamlRicharason -
'. Property.
0
1:824
9 0 34 69 Feet
NAO_1988_HARI, StatePWrre_Washington_ .
NoM FlPS 4607
n�.,�r, M Nolan- This rretD is a user generated static output!roar an naemet n4lpping sle arM
Cjty Of Oi i�c^as' RentonM is for mferexe tt'N-Data IaTm vial appes on this nap maY or may rot w -
"c,�y' apSuppoR�RerAonwa.gov —sine,cmrern,or ott rW-re iOe.
Finance MT Division 10124/2012 THIS MAP IS NOT TO BE USED FOR NAVIGATION '
433270.2 360099 0042
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EXHIBIT B
DESCRIPTION OF REPAIRS AND IMPROVEMENTS
AND
ESTIMATE OF COSTS AND EXPENSES
CLEVELAND PROPERTY
Potential Costs to Occupy
AMOUNT ALTERNATE
Deck $ 7,000.00 $ 7,000.00
Joists, beams, railing, surface boards. Accounts for reduced
width, small sitting area, and egress
Furnace Rplacement $ 5,000.00
Alternate: Service and cleaning if furnace replacement is not
r $ 750.00
required
Plumbing $ 1,000.00 $ 1,000.00
Fixtures, angles, stops, address low-flow
Paint
Interior addressing chipping and wash $ 2,500.00 $ 2,500.00
Exterior addressing chipping and priming $ 8,475.00 $ 8,475.00
Steam Clean Carpet Throughout $ 500.00 $ 500.00
Replace carpet where pet odors persist $ 1,000.00 $ 1,000.00
Grounds and shrub separation from structure
Two workers at 16 hours at $30/hr ea) $ 960.00 $ 960.00
Subtotal $ 26,435.00 $ 22,185.00
Potential Hidden Costs
Electrical $ 5,000.00
Replace service panel, grounded fixtures and three-prong
outlets
Chainlink fence
Barrier from Pond and northern gully stream chute boundary
$15 Per foot @150 feet $ 2,250.00 $ 2,250.00
Total $ 33,685.00 $ 24,435.00
433270.2 1360099 10042
INKW, ELL
PAINTING&CONSTRUCTION
PO Box 59104
Renton,WA 98055
(800)251-1929 .}
November 6, 2012
Bruce Sharpe
Renton Housing Authority
2900 NE 10ffi Street
Renton,WA 98055 i
RE: Cleveland House -n,2"`' REVISED�BID (adjus ed to reflect prevailing labor wages)
.,x
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Dear Bruce:
We respectfully submit die follo sal to supply the materials and perform the labor
O
necessary for painting the exterior of the l use located at tie Cleveland,House.The following
areas are included in this proposal: Siding, soffitts, gutters,window/door trim and
front/side doors:
• Thoroughly prepare all surfaces; removing-,all loose paint, dirt and contaminants,
using pressure washing equipment, and hand tools as necessary.
• Remove all loose caulk and caulk all cracks with Premium 30 YEAR Caulk, as needed.
• Spot prime all bare wood areas with a coati of wood penetrating primer.
• Apply two coats to cover of Kelly-Moor's Premium 1009/6 Acrylic Latex Paint to all
previously painted exterior wood surfaces. Siding shall be sprayed and backrolled to
9 provide further penetration and protection and,,for a,more,uniforiu appearance.
• 1 Apply one coat of Kelly-Moo's Premium Satin Enamel to all exterior doors. All paint
shall niatch existing colors. (1 bodygk 1 trim color). �
•
Lead tabateinent which'includes all necessary certification, protection, removal and
disposal-as required=bylaw. #
Total: $8,475
u tak e'�'
(incldes$37:51 for Jourriel Level painter,$2 p Apprendceiave
painter)
Thank you for the opportunity. If you have any questions, please do not hesitate to contact me
direct at (425) 213-0206.
i
Sincerely,
Rick Lockhart