HomeMy WebLinkAboutLease LEASE AGREEMENT
LAG-06-001
THIS LEASE is made and entered into this '7>4day of ' ,2005,between
THE CITY OF RENTON,a Washington municipal corporation(the "City"),and the RENTON
HOUSING AUTHORITY, a Washington municipal corporation("RHA").
Recitals
HE A
W RE S, the City owns certain real property located at
7g// - "IA-31W Y1. .S' , Renton, Washington, which real property is legally
described in Exhibit A attached hereto and incorporated by this reference;
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,the City desires to lease to RHA, and RHA desires to lease from the City,that
portion of the subject real property depicted in the diagram attached hereto as Exhibit B and
incorporated herein by this reference (referred to hereinafter as the Premises ) so RHA may
sublease the Premises to persons qualified for affordable housing;
NOW, THEREFORE, the parties agree as follows:
1. Description,Term, Rent,Use.
1.1 Lease of Premises. The City hereby leases to RHA and RHA hereby leases from the
City the Premises, 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 tenants shall not be allowed access to the
barn located on the subject real property. The City shall take reasonable efforts to secure the barn
from unauthorized entry.
1.3 Use of Premises. RHA shall use the Premises solely for the purpose of providing
affordable housing to qualified tenants. RHA agrees that in the use and occupation of the Premises,
RHA and its tenants will comply with all laws,"ordinances, orders and regulations of the federal,
state,county and municipal authorities. RHA covenants that it will not use or permit to be used any
part of the Premises for any dangerous,noxious or offensive business or activity,and will not cause
or maintain any nuisance in, at, or on the Premises.
1.4 Necessary Improvements to the Premises. The parties acknowledge that substantial
improvements to the Premises will be necessary before RHA will be able to use the Premises for its
intended use. RHA shall be responsible,at its sole cost,for performing all construction-related work
necessary to make the Premises safe and suitable for its intended use. The work to be performed by
RHA includes the installation of a 4-inch gravity sewer connection that has been planned by the City
and is estimated to cost approximately Ten Thousand Six Hundred and No/100 Dollars($10,600.00),
excluding tax. The City has already obtained a permit from King County that is necessary to perform
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this work. However,RHA shall be responsible for acquiring any other permits and/or final approval
from King County before proceeding with this work. To the extent RHA is able to use the permit
obtained by the City for this work,RHA shall reimburse the City for the cost of the permit,which is
Four Hundred Ninety-five and No/100 Dollars ($495.00). The parties also acknowledge that RHA
will need to replace, at its sole cost,the furnace providing heat to the Premises.
The City agrees to provide,at its own expense,a sewer stub onto the real property into which
the subject Premises will be connected.
RHA has inspected the Premises 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 five (5) years after the Commencement Date. Thereafter the lease may be renegotiated
between the parties for a further five (5)year term, if the Lessee is not in breach of the
lease, and at the mutual agreement of the parties.
1.6 Rent. The annual rent to be paid by RHA during the initial 5-year term of this Lease
shall be$1.00 per year,plus any applicable leasehold taxes. The rent shall be payable annually on or
before the anniversary of the Commencement Date. The parties acknowledge that the rental amount
agreed to for the initial 5-year term of the Lease reflects the substantial costs that RHA will incur in
order to be able to use the Premises for its intended purpose.
Annual rent for any extended 1-year terms shall be negotiated and agreed to by the parties at
least thirty(30)days before the expiration of the initial 5-year term or any subsequent 1-year terms.
The parties agree that they shall negotiate in good faith the rental rate to be paid by RHA for any
subsequent 1-year terms of this Lease.
2. Utilities.
RHA shall pay when due all charges for electricity, gas, sewage disposal, water,telephone
and other utility services used on the Premises and shall indemnify and hold the City harmless
against any liability on any such account. The maintenance, operation and repair of any utility
system on the Premises, including the connections to the utility distribution systems, shall be the
responsibility of RHA and shall be paid for by RHA.
3. Insurance,Risk, Indemnification.
3.1 Insurance. The City shall, at the City's sole cost and expense, keep the Premises,
including any structures and fixtures therein,insured in an amount not less than one hundred percent
(100%) of the full linsurable 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.
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3.2 Liability Insurance. RHA, at the RNA's sole cost and expense, shall maintain
general public liability insurance against claims for personal injury, death or property damage
occurring upon,in,or about the Premises,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. The City shall be named as an additional insured for
any damages, claims, causes of action or other actions caused by RNA's, or its tenants', use of the
Premises.
3.3 Waiver of Subrogation. The City 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 the City or RHA. Both
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 Risk of Loss. All property on the Premises shall be there at the sole risk of RHA.
The City shall not be liable for any damage to persons or to property of RHA or of others located on
the Premises. The City shall not be liable for any damage caused by tenants or persons in the
Premises. RHA shall use and enjoy the Premises at its own risk, and hereby releases the City, and
agrees to hold it harmless, from any and all claims arising out of or resulting in damage or loss of
property,loss of life,and personal or bodily injury,including subrogation claims by RHA's insurance
carrier,unless such damage,loss or injury shall be caused by the willful act or negligence of the City.
3.5 Waiver/Indemnity. Except as expressly herein provided,the City shall not be liable,
and RHA waives all claims for damages to persons or property sustained by RHA or RHA's
employees, agents and tenants resulting from the Premises or by reason of the Premises, or any
persons present on the Premises for any purpose, or resulting directly or indirectly from any act or
neglect of any tenant or other person, except the City, its officers, agents or employees.
RHA shall indemnify and save the City harmless from any and all claims, damages and
expenses,including reasonable attorney's fees for the defense thereof,arising from or incident to the
activities conduct by RHA or RHA's tenants, 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 Premises. If any such claim or action
within this paragraph is brought against the City, RHA shall defend it by counsel reasonably
satisfactory to the City.
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4. Repairs and Maintenance.
RHA covenants, at RNA's sole cost and expense, to take good care of the Premises and all
other improvements thereto or thereon 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 Premises in a clean and
orderly condition.
The City covenants, at the City'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 tenants.
5. Changes and Alterations by RHA. RHA shall have the right to make such improvements,
changes or alterations, structural or otherwise,to the Premises 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 the City's written consent thereto and subject to the City's approval of the
plans and specifications therefor,which consent and approval shall not be unreasonably withheld.
6. Subletting and Assignment.
6.1 Subletting. RHA may sublease the Premises to any persons qualifying for affordable
housing in accordance with RNA's standard procedures.
6.2 Assignment. RHA may not assign this Lease without the prior written consent of the
City.
7. Quiet Enjoyment. On payment of the rent and performing its obligations hereunder,RHA
may quietly enjoy,have and hold the Premises 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 the
City's demand, surrender to the City the entire Premises,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 Premises.
9. Default.
9.1 Default. If RHA (1)fails to pay any rent due hereunder within thirty days after the
same shall be due and such delinquency shall continue for a period of seven days following written
notice thereof to RHA by the City, (2) leases any portion of the Premises 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 days after written notice of such
default shall have been given by the City to RHA, (4) abandons the Premises, or (5) suffers this
Lease to be taken under any writ of execution,then the City,besides other rights or remedies it may
have, shall have the immediate right of re-entry to the Premises.
358187\0002\327308.01 - 4 -
9.2 Remedies. Should the City elect to re-enter, as herein provided, or should it take
possession pursuant to legal proceedings or any notice provided for by law,the City 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 City. If the City fails to perform any material term,condition or covenant
of this Lease on its part to be performed for more than thirty days after written notice of such default
given by RHA to the City,then RHA shall have the right to terminate this Lease upon written notice
of such intention given to the City 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
the City, including but not limited to the right to recover damages and/or to require specific
performance of the City's obligations hereunder.
9.4 Other Rights. Nothing herein contained shall be construed to alter, affect or
eliminate any other right or remedy of the City or RHA,at law or in equity or elsewhere provided for
in this Lease.
10. Termination.
10.1 Voluntary by RHA.
10.1.1 RHA may terminate this Lease, at any time after the initial 5-year term, by
giving the City a written notice of termination at least sixty(60)days in advance of the termination
date.
10.2 Voluntary by City.
10.2.1 The City may terminate this Lease at anytime during the initial 5-year term or
any subsequent 1-year terms by giving RHA a written notice of termination at least sixty(60)days in
advance of the termination date. In light of the significant costs to be incurred by RHA to repair and
refurbish the Premises for their intended use,the City agrees not to terminate the Lease during the
first year of the initial 5-year term of the Lease.
10.2.2 The City may terminate this Lease at anytime during the initial 5-year term or
any subsequent 1-year terms if any major maintenance and repair projects become necessary and the
cost of such work exceeds Two Thousand and No/100 Dollars ($2,000) for any single incident or
project.
11. Right of Inspection. The City shall have the right to inspect the Premises at all reasonable
times in accordance with the standard terms of RHA's lease agreements with its tenants and as
otherwise provided by federal and state law,including the Residential Landlord Tenant Act,Chapter
59.18 RCW.
12. Notices. All notices,approvals,or other communications provided for or required under the
terms of this Lease to be given by either party to the other shall be in writing and given or served
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personally at,or by United States Mail, 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
P.O. Box 2316
Renton, WA 98056-0316
or to such other addresses as either parry 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 the City 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 ffect. The terms provisions and conditions of this Lease shall be binding
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upon and inure to the benefit of the City 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.
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 the City and RHA,and no provisions in this Lease and no acts of the parties hereto shall be
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deemed to create any relationship between the parties hereto 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 the City and
RHA,and the City and RHA acknowledge that there is no other written or oral promise between the
City and RHA with respect to the Premises,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 CCI� ITY OF RENT/O-N RENTON HOUSING AUTHORITY
By:'/l /� ,�re ,� By .�
Kathy Keolker
Its: Mayor Its: i (- tc,
Date: Date: /Z 6a
Attest: iLJ.C/w �• (.(J(.l.�.t-�'��
Bonnie I. Walton, City Clerk
I
358187\0002\327308.01 - 7 -
d . r
.STATE OF WASHINGTON )
ss:
COUNTY OF KING )
I certify that I know or have satisfactory evidence that KQ I r-p t ee is the
person who appeared before me,and said person acknowledged that he/6 b signed this instrument,on
oath stated that heo was authorized to execute the instrument and acknowledged it as the
MUD e- of the City of Renton, Washington to be the free and voluntary act of
such municip l corporation for the uses and purposes mentioned in the instrument.
DATED:
r
NAME: -.I asc> l A• JG��I
'icy y
6,20 (Print Name)
Notary Public in and for the State of Washington
Commission Expires: '2- $
STATE OF WASHINGTON )
ss:
COUNTY OF KING )
I certify that I know or have satisfactory evidence that 4 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
4wto f,ue- D,*r e-ct6 r- 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 " -7'0
APR A 1. ���01 <Fart��- c�
v10TAO: NAME: af bAl a l�ltl°.K a
PUBLIC i (Print Name)
+s '•• �, Notary Public in and for the State of Washington
-� s-09
�q�y� � �
�N�+_s Commission Expires:
358187\0002\327308.01 - 8 -
Exhibit "A"
The Talon Group
a Division of Rrst Anwimn Title Insurance Co. Commitment No.: 384014
Exhibit"A"
Real property in the County of IGng,State of Washington,described as follows:
Parcel A:
The North Half of the Northwest Quarter of the Northwest Quarter of the Northwest Quarter of Section
32,Township 23 North,Range 5 east,W.M.,in Mg.County,Washington.
Together with.th at portion of the North Half of the Northeast Quarter of the Northeast Quarter of the
Northwest Quarter of said Section 32, lying Westerly of the Westerly Right of Way margin of 103rd Place
Southeast.
Together with the North 187 feet of the South Half of the Northwest Quarter of the Northwest Quarter of
the Northwest Quarter of said Section 32,lying Easterly of a line parallel with and distant 426.00 feet
Easterly at right angles from-the West line of the Northwest Quarter of the Northwest Quarter of said
Section 32.
Parcel 8:
That portion of the Northwest Quarter-of the Noithvvest Quarter of Section 32,Township 23 North,Range
5 East,W.M.,In long County,Washington,described as follows:
Beginning at the Northwest comer of the Northeast Quarter of the Northwest Quarter of the Northwest
Quarter of said section 32;thence South 00°22'52"West 333.17 feet to the South line of the North Half
of the Nottfne A Quarter of the Northwest Quarter of the Northwest Quarter of said Section 32,and the
true point of beginning;thence North 86°1924"East 277.00 feet along said South fine to the Westerly
margin of the IG.Carr Road;O enoe South 02°24'54"West along the West;edy margin of said road a
distance of 404.91 feet to a point of curve;ttnence along said curve to the right 278.71 feet;thence North
88°19"28"Fast 74.96 feet to the West Gne of the southeast Quarter of the Northwest Quarter of the
Nortirwest Quarter of said Section 32;thenoe North 0002ZS2"East 556.74 feet to the true point of
beginning.
Except that portion cMveyed to 9 County for road by deed recorded under recording no.5799285.
Tax Parcel Number:322305-907204 and 322305-915603
form No.1068-2 Page 3 o(10
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Exhibit "B"
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