HomeMy WebLinkAboutAdden 3 LAG-01-006, Adden #3-15
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DEPARTMENT OF COMMUNITY SERVICES
THIRD AMENDMENT (# 14-03) TO LAG-01-006
Between
CITY OF RENTON and KCSARC
This Third Amendment to Lease (the "Third Amendment") is entered into as of this 27th
day of February, 2015 ("Effective Date"), by and between the City of Renton,
Washington, a noncharter code city under RCW 35A, and a Washington municipal
corporation ("Renton"), and King County Sexual Assault Resource Center, a non-profit
corporation registered in Washington ("Tenant"),jointly referred to as the "Parties".
Recitals
WHEREAS, by this written amendment, the Parties mutually agree to amend the
original and existing Lease Agreement, and the previous mutually agreed written
amendments of that original and existing Agreement (with each amendment and the
original agreement collectively referred to as "Lease"), under which Tenant leases the
premises commonly known as Suite 10, located on the ground floor of the 200 Mill
Avenue South Building, Renton, Washington (the "Building"), entered into by the Parties
on or about October 25, 2001 ("Original Lease", Reference: LAG #01-006),
WHEREAS, pursuant to the Original Lease, Tenant now leases Suite 10, which is
approximately 7,421 rentable square feet in the Building.
WHEREAS, Landlord and Tenant desire to extend the Lease for Suite 10 for a
term of five (5) years. For that purpose, the Parties agree to amend Section 1 (g) of the
Lease to reflect this new Lease Expiration Date and further amend Section 1 (i) of the
Original Lease to reflect the new Minimum Monthly Rent.
WHEREAS, Renton has agreed to provide new tenant improvements, and Tenant
shall work with Kidder Mathews, Landlord's agent, to facilitate the improvement work,
to be completed by a Tenant approved contractor and pricing. The Lease will include a
five-year option to extend the Term of the Lease Agreement. The new tenant
improvements are limited to, and specified in Paragraph #3 of this Third Amendment.
Prior Amendments to LAG #01-006
Amendment 01-04, executed June 15, 2004, which extended the term of the Lease
through 3/31/10 and changed the monthly rents.
Amendment 02-09, executed dated October 15, 2009, that extended the term of the
lease through 2/28/2015; changed the monthly rents; provided for minor tenant
improvements; and provided an option for a 5-year extension.
Amendments related to Amendment 14-03
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which is acknowledged, the Parties agree as follows:
Section 1. Lease Section 1(g), entitled Expiration Date, shall be amended as
follows:
"Expiration Date" means February 29, 2020.
Section 2. Lease Section 1(i), entitled Minimum Monthly Rent, shall be amended
as follows:
"Minimum Monthly Rent" means the following amounts, paid in
accordance with Article 5 of the Lease, as provided by the following
periods during the Term of this Lease.
Period Monthly Amount
March 1, 2015— May 15, 2015: $0.00 per month
May 16, 2015— February 29, 2016: $11,131.50 per month
($18.00 psf)
March 1, 2016— February 28, 2017: $11,440.71 per month
($18.50 psf)
March 1, 2017 - February 28, 2018: $11,749.92 per month
($19.00 psf)
March 1, 2018— February 28, 2019: $12,059.13 per month
($19.50 psf)
March 1, 2019 - February 29, 2020: $12,368.33 per month
($20.00 psf)
SECTION 3. Lease Section 14(a), entitled Tenant Improvements, shall be deleted and
replaced by the following language:
Tenant Improvements. Tenant shall accept the Premises in an "as is,
where is" condition, excepting that Tenant, acting through the existing
property management agent, Kidder Mathews, will cause a mutually
acceptable licensed contractor to complete the Improvement Work
described below. The Improvement Work shall be competitively bid by
the property management agent, Kidder Mathews, to Davis Schueller and
Talon Construction Inc. each of whom shall be required to provide not to
exceed pricing for the stated Improvement Work which shall be funded
by the Landlord in an allowance to the Tenant, equal to the actual fixed
contract amount plus the amount of any mutually approved change
orders (provided that Landlord shall be required to approve change
orders initiated by the contractor unless the change order is in response
to a request from Tenant to expand the scope of the Improvement
Work). Upon receipt of the bids, Landlord and Tenant shall mutually
select the contractor. The work to be performed by the Contractor shall
include re-balancing of the HVAC system servicing the Premises,
re-painting all existing drywall surfaces including 2-3 accent wall colors,
as well as re-carpeting of the Premises with a building standard carpet
tile and base in a color and design mutually approved by the Tenant and
Landlord prior to installation (the "Improvement Work"). Landlord shall
disburse the allowance to Tenant within ten (10) business days after the
Improvement Work is completed and if the allowance is not so disbursed,
Tenant can offset the cost of the Improvement Work against the next
payments of rent coming due. The Improvement Work and any work in
addition to the Improvement Work shall be supervised by Kidder
Mathews. Landlord shall ensure that Kidder Mathews will not assess to
either Tenant or the Landlord a construction management fee. Tenant
shall not be responsible for any costs relating to the Improvement Work
as defined herein. If Tenant retains a contractor, pursuant to a separate
written contract, to complete work in addition to the Improvement
Work, Tenant shall pay for such work directly. The Improvement Work
shall be completed in the Premises prior to July 31, 2015, at times as
agreed upon by Landlord and Tenant. Any work that creates noise or
odors that could disturb or annoy Tenant or its clients shall be performed
outside of Tenant's usual business hours (9:00 a.m. to 7:00 p.m. Monday
to Thursday and 9:00 a.m. to 5:00 p.m. on Friday).
SECTION 4. Lease section 38(b), entitled Broker, shall be deleted and replaced by the
following language:
Landlord and Tenant acknowledge that Kidder Mathews represents the
Landlord in this transaction and Rob Nielson and Hughes McLaughlin of
Jones Lange LaSalle represent the Tenant. Both parties are aware of, and
acknowledge, the real estate laws in Washington. Upon execution,
Landlord shall pay to Jones Lange LaSalle, for the benefit of Rob Nielson
and Hughes McLaughlin a market brokerage fee. Except for the brokers
listed above, Tenant and Landlord each represent and warrant to the
other that neither has had any dealings or entered into any agreements
with any person, entity, broker or finder in connection with the
negotiation of this Third Amendment, and no other broker, person, or
entity is entitled to any commission or finder's fee in connection with the
negotiation of this Third Amendment, and Tenant and Landlord each
agree to indemnify, defend and hold the other harmless from and against
any claims, damages, costs, expenses, attorneys' fees or liability for
compensation or charges which may be claimed by any such broker,
finder or other similar party of reason of any dealings, actions or
agreements of the indemnifying party.
SECTION 5. Lease Section 43(b), entitled Option to Extend, shall be deleted and
replaced by the following language:
So long as Tenant is not then in default under this Third Amendment or
the Lease, after receipt of notice and expiration of any applicable cure
period, Tenant shall have the option to extend the term of the Lease for
one (1) additional five (5) year period commencing March 1, 2020, and
expiring February 28, 2025 (the "Extended Term"). To exercise its option
to extend this Lease for the Extended Term, between March 1, 2019 and
July 31, 2019, Tenant must deliver to Landlord, in accordance with
Section 46(g) of the Lease, a written notice (the "Option Notice")
exercising its option to extend. The option to extend granted to Tenant
pursuant to this Section is personal to Tenant and may not be exercised
by or for the benefit of any assignee of Tenant. All of the terms and
conditions of this Lease and this Third Amendment shall apply during the
Extended Term except (i) the Minimum Monthly Rent shall be an amount
mutually agreed to by Landlord and Tenant or determined by arbitration
as set forth below; (ii) there shall be no further options to extend or
renew after the commencement of the Extended Term, unless otherwise
agreed at that time by and between Landlord and Tenant; and (iii) there
shall be no landlord-provided Tenant Improvements or other landlord
concessions (such as free or abated rent and tenant improvement or
other allowances) during the Extended Term, unless Landlord elects to
offer landlord-provided Tenant Improvements or other landlord
concessions during the Extended Term provided that if Landlord elects
not to provide Tenant Improvements or other landlord concessions
during the Extended Term the Minimum Monthly Rent shall be adjusted
accordingly to reflect the value of market rate concessions and
improvements.
When the Minimum Monthly Rent for the Extended Term is determined,
whether by agreement of the parties or pursuant to arbitration as
provided below, Landlord and Tenant shall enter into a lease extension
agreement setting forth the new Minimum Monthly Rent for the
Premises and such other terms as may be applicable. If at the time
Tenant delivers the Option Notice to Landlord, or at any time between
such date and the commencement date of the Extended Term, Tenant
defaults under this Lease and fails to cure its default within the applicable
cure period, if any, Landlord may declare the Option Notice null and void
by written notice to Tenant.
The Minimum Monthly Rent for the Extended Term shall be one-twelfth
(1/12th) of the then "fair market rent" (defined below) multiplied by the
number of rentable square feet in the Premises. The term "fair market
rent" means the rate per rentable square foot per year (which may
include increases during the Extended Term to the extent increases are
consistent with then current market conditions) that a new or renewing,
willing, non-equity Tenant would pay in an arms-length transaction for
the Premises (taking into account any landlord-provided Tenant
Improvements or other landlord concessions then available in the market
area), or for comparable space in the Building, if any, or for comparable
space in comparable buildings providing comparable services in Renton
or Tukwila, Washington, for leases having a five (5) year term in all cases
with the same base year as this Lease. Landlord and Tenant agree the
fair market rent for the Extended Term shall be determined as follows:
a. Promptly after Landlord receives the Option Notice, the Parties
(or their designated representatives) shall meet and attempt to
agree on the fair market rent for the Extended Term. If the
Parties have not agreed on the fair market rent for the Extended
Term within one hundred twenty (120) calendar days after
Landlord receives the Option Notice, then unless otherwise
agreed in writing by the parties, the matter shall be submitted to
arbitration in accordance with the terms of the following
paragraphs. The last day of such one hundred twenty (120)
calendar day period (as the same may be extended by the written
agreement of the Parties) is referred to in this Lease as the
"Arbitration Commencement Date".
b. Within fifteen (15) calendar days after the Arbitration
Commencement Date, each party shall provide the other party
with written notice (a "Rent Notice") of its determination of fair
market rent. The matter shall then be submitted for decision to an
arbitrator. The arbitrator shall be a licensed real estate broker
acceptable to both parties who has been active over the five (5)
year period ending on the Arbitration Commencement Date in the
leasing of office properties in Renton, Washington, and has not
during that period been retained by either party. If Landlord and
Tenant are unable to agree on the arbitrator within thirty (30)
calendar days after the Arbitration Commencement Date, each
shall select a broker who shall be qualified under the same criteria
set forth above, and so notify the other party in writing within ten
(10) calendar days after the end of such thirty (30) calendar day
period. The two brokers so chosen by the Parties shall then
appoint a third broker who meets the qualifications set forth
above to act as the arbitrator within ten (10) calendar days after
the date of the appointment of the last appointed broker. If the
two brokers so chosen by the Parties are unable to agree on the
arbitrator within such ten (10) calendar day period, the arbitrator
will be appointed by the director (or the equivalent) of the Seattle
office of an arbitration service with reasonable arbitration fees
upon the application of either party. If either party fails to timely
select its broker and so notify the other party in writing within the
foregoing ten (10) calendar day period, and the other party timely
selects its broker, then the broker selected by the other party
shall be the arbitrator for determining fair market rent provided
that the broker must agree in writing to act as a neutral arbitrator
and not as an advocate for the party who selected the broker.
c. Within thirty (30) days after the selection of the arbitrator
pursuant to (b) above, the arbitrator shall determine fair market
rent by selecting either the fair market rent stated in Landlord's
Rent Notice or the fair market rent stated in Tenant's Rent Notice.
The determination of the arbitrator shall be limited to the sole
issue of whether the fair market rent specified in Landlord's Rent
Notice or Tenant's Rent Notice is closest to the actual fair market
rent as determined by the arbitrator. The arbitrator shall have no
power to average such amounts or to designate a fair market rent
other than that specified in either Landlord's Rent Notice or
Tenant's Rent Notice.
d. Both parties may submit any information to the arbitrator for his
or her consideration, with copies to the other party. The
arbitrator shall have the right to consult experts and competent
authorities for factual information or evidence pertaining to the
determination of fair market rent. The arbitrator shall render his
or her decision by written notice to each party. The
determination of the arbitrator will be final and binding upon
Landlord and Tenant. Each party shall pay the fees payable to its
broker and the cost of the third arbitrator will be paid by Landlord
if the fair market rent determined by arbitration is the fair market
rent specified in Tenant's Rent Notice and by Tenant if the fair
market rent determined by Arbitration is the fair market rent
specified in Landlord's Rent Notice.
SECTION 6. Lease Section 46, entitled Miscellaneous Provisions, shall be amended to
add a new subsection, subsection (1), which shall contain the following language:
(1) Base Year. Effective March 1, 2015, the new base year shall be
adjusted to 2015. Tenant shall pay increases in operating expenses, on a
pro-rata basis, over and above the base year amount.
SECTION 7. Landlord shall not lease any space adjacent to the Premises to a third party
unless and until Landlord has offered such space to Tenant at the then current fair
market rent. If so offered by Landlord, Tenant will have seven (7) business days in which
to accept terms, or reject terms for the adjacent space. If Tenant rejects terms,
Landlord may lease to the third party. Separately, if Tenant indicates that it is interested
in leasing the adjacent space, Landlord and Tenant shall negotiate in good faith for a
period of thirty (30) days to amend the Lease to include the adjacent space.
SECTION 8. Landlord shall institute existing and future measures that Landlord feels are
appropriate and cost effective, to promote the safety and security of the Premises and
building, consistent with other Office Buildings in the City of Renton. This shall
include keeping the parking areas and the common areas outside the entrances to the
Premises and the building reasonably lit from dusk to dawn. Landlord shall discourage
overnight sleeping, drug use, graffiti and other malicious mischief. Landlord may elect
to provide, maintain and operate security cameras (which currently exist) to assist in
this endeavor. Landlord shall remove graffiti in a timely manner, and correct vandalism
promptly, and Tenant shall assist Landlord in notifying Landlord of such events, as they
occur. Landlord shall not be responsible for or act as a guarantor for the safety of the
Tenant or the Tenant's guests. Tenant may choose to employ security if the Tenant
believes that security is required.
SECTION 9. All terms and conditions of the Agreement not amended by Amendment
#14-03 shall remain in full force and effect and are ratified and re-confirmed. To the
extent any term(s) and/or condition(s) of this addendum conflicts with any term(s)
and/or conditions) of this Amendment 14-03, the term(s) and/or conditions) of this
addendum shall control.
IN WITNESS WHEREOF, the Parties execute this Third Amendment as of the Effective
Date.
LANDLORD
The City of Renton, Washington, a Washington
Municipal Corporation
By
Denis Law, ay
ATTEST:
Jason e City Cleric �.
TENANT
King County Sexual Assault Resource Center, a non-profit corporation registered
in Washington
By:
Mary E114n S one
Executive Director
STATE OF WASHINGTON )
ss.
COUNTY OF KING )
4
On this 27 day of February, 2015, before me, a Notary Public in and for the
State of Washington, personally appeared MARY ELLEN STONE, personally known to me
(or proved to me on the basis of satisfactory evidence) to be the person who executed
this instrument, on oath stated that she was authorized to execute the instrument, and
acknowledged it as the Executive Director of KING COUNTY SEXUAL ASSAULT RESOURCE
CENTER, to be the free and voluntary act and deed of said corporation for the uses and
purposes mentioned in the instrument.
IN WITN� r1fKFQEOF, 1 have hereunto s t my hand and official seal the ay and
year first abQ,o *1?tW.i""
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1p�p�RY
=4 ~�= O ARY PUBLIC in and for the Sta of
W hington, residing at V K� C.s -
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,�� '• ..... ry�;`�: Print Name
STATE OF WA�� )
ss.
COUNTY OF KING )
On this day of (y ,
1S befork me, a Notary Public in and for the State of Washington,
personally appeared tt.,;� personally known to me (or
proved to me on the bases of sati,sfactory evidence) to be the person who executed this
instrument, on oath stated that ie she was authorized to execute the instrument, and
acknowledged it as the ( of The City of Renton, Washington, a
Washington municipal coep6ratiod to be the free and voluntary act and deed of said
municipal corporation for the uses and purposes mentioned in the instrument.
IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day and
year first above written. `\``��������►►►���' _.
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