HomeMy WebLinkAboutLease LAG-18-009
Lease Agreement
City of Renton and Communities in Schools of Renton
At Liberty Park Community Building
LAG-�r-CO,
THIS LEASE AGREEMENT ("Agreement") is entered into this i 7� day of , , 2018 (the
"Effective Date") by and between the City of Renton ("City"), a Washington municipal
corporation, and Communities in Schools of Renton ( "CISR" ) a Washington Nonprofit
Corporation, for the purpose of general business and administrative office for CISR. City and CISR
are collectively referred to as "Parties."
WHEREAS, since 1995 the City and the Renton School District ("School District") have contracted
in a three-party agreement with CISR to provide services (articulated in the three-party
agreement) in exchange for financial and in-kind support from the City and School District, the
City, District and CISR are updating the current three-party agreement; and
WHEREAS, the City has formerly leased space to CISR in the 200 Mill Building in satisfaction of
the three-party agreement and that lease is expiring; and
WHEREAS, the City and CISR desire to continue their relationship and to enter into a new
agreement and to relocate CISR to a different cite; and
WHEREAS, this Agreement is intended to satisfy the in-kind operating City support obligations in
the three-party agreement.
In consideration of the above WHEREAS provisions, covenants and agreements set forth in this
Agreement, the Parties agree as follows:
1. LEASE PREMISES
A. The City leases to CISR, a portion of the real property located at 1101 Bronson Way
N, Renton,WA 98055, commonly known as the "Liberty Park Building" - Suite 200
of the first floor and the entire second floor ("Premises"). The floor plan of the
Premises is shown on Exhibit A, attached hereto and incorporated by reference.
B. Parking is available in an adjacent public lot on a first-come, first-served basis.
C. CISR shall not use the Premises for any other purpose without the prior written
consent of the City, which may be withheld for any reason.
D CISR has either examined the Premises or has waived examining the Premises and
accepts the Premises as is, in its present condition as part of the consideration of
this Agreement, and CISR accepts all related liabilities and risks related to use of
the Premises.
Lease Agreement—Communities in Schools of Renton 08-27-18 Page 1 of 13
E. Use Restrictions for Second Floor.
CISR accepts:
1. The floor shall not be loaded above 75 pounds per square foot.
2. Access to closets shall not be blocked.
3. Closets without mechanical equipment may be used for storage; closets
with mechanical equipment may not.
4. Conditions prescribed by the City Fire Marshall shall be maintained at all
times and with no exceptions.
5. Limited Liability:
CISR understands and accepts that the only access to the second floor is by
a stairway. The City affirms that the stairway has been examined by City
Building Officials who judged the stairway to be in compliance with
governing codes and regulations and in good condition. CISR accepts that
the City will not be liable for accidents or personal damages that occur on
or about this stairway except in the case of gross negligence on the City's
part. Tennant will be responsible to immediately report any safety or
maintenance issues with the stairway and agrees not to use the stairway
from the point of report until the City has restored the stairway to a safe
condition.
E. CISR may have secondary use of the large conference room for its temporary uses.
"Temporary" refers to daily uses in which the conference area is returned to its
open configuration at the end of the business day.
F. Signage and Graphics.
CISR may provide signage at its own expense. All graphics placed upon or affixed
to any of the Premises shall be subject to City's prior written approval and shall
not include product or commercial advertising.The design,size, and location must
be preapproved in writing by the City. CISR will follow all City sign codes, including
A-frame signs. CISR shall submit detailed plans and secure any needed permits/
approvals for all exterior and interior signs. In all cases, signage shall be consistent
in size, color, lettering, and theme to regular park signage and specifications.
G. CISR 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 CISR.
H. The City and its authorized representatives shall have the right to relocate CISR
to another part of the Building, or to another City building with similar access
Lease Agreement—Communities in Schools of Renton 08-27-18 Page 2 of 13
and support services for the City's convenience. The parties may negotiate the
options and costs of such relocation.
1. COSTS OF MOVING CISR FROM 200 MILL TO LIBERTY PARK BUILDING.
As part of the City's satisfaction for the three-party agreement
referenced above,the City will pay for the costs of moving CISR from 200
Mill to the Liberty Park Building. The logistics of the move and the
associated costs are at the City's direction and control.
2. TERM and TERMINATION
A. Term
This Agreement shall be for an initial term of one (1) year from the beginning on
July 1st, 2018, unless otherwise terminated pursuant to the termination section
of this Agreement. After the initial one (1) year term of this Agreement, 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 CISR.
B. Termination
Either Party may terminate this Agreement with 90 days written notice at any
time, for any reason to the other Party.
Either Party may terminate this Agreement with 30 days written notice prior to
the termination date of the Agreement.
3. NOTICE
Except as otherwise designated in this Agreement, all notices must be in writing and shall
be deemed valid given if sent by certified mail, return-receipt requested, or overnight
delivery, addressed as follows or as otherwise specified by the City during the duration of
this Agreement:
City of Renton
Community Services Facilities Division
1055 South Grady Way
Renton, Washington 98057
Attn: Facilities Director
Communities in Schools of Renton - CISR
Attn: Executive Director
4. CONSIDERATION AND PAYMENTS
Lease Agreement—Communities in Schools of Renton 08-27-18 Page 3 of 13
A. Monthly Rental Payment
As part of the City's satisfaction for the three-party agreement referenced above,
the City agrees to charge a discounted rental amount less than the market value
and CISR agrees to pay leasehold excise tax based upon the market value of the
rent.
1. CISR agrees to pay reduced rental for the premises in the amount of
$478.12($0.28/sqft) per month plus Leasehold Excise Tax of $327.42 per
month for a total monthly payment of$805.54.
2. The payment is due on the first day of each and every calendar month
during the term of this Agreement.
B. All payments shall be paid or delivered to:
RE: LAG - 00?
Accounts Receivable
1055 S. Grady Way 5th Floor,
Renton, Washington 98057.
C. Late Payment.
If any required payment is not paid by CISR to City within ten (10) days after the
date specified, a late charge of ten percent (10%) of the payment due and unpaid
shall be added to the payment as a penalty and the total sum shall become
immediately due and payable. Any amount remaining unpaid by the first day of
the month following the due date for payment (i. e., approximately twenty (20)
days late) shall bear interest at one percent (1%) each month.
D. City's receipt or acceptance of any Payment, Rent or Consideration, with
knowledge of CISR' s breach of this Agreement or CISR' s default that is related to
this Agreement or impacts this Agreement shall not constitute or be deemed a
waiver of any provision of this Agreement.
E. If after the end of the Initial Term or any Extension Term, Tennant continues to
use the Premises without entering into a new lease with the City, and/or City has
not sent CISR written notice to terminate or not renew the Agreement, CISR shall
owe City any Rent on a month-to-month basis on the same terms and conditions
of this Agreement, and any new terms required by the City, and pay monthly Rent
in an amount equal to One Hundred Twenty Five Percent 125%) of the monthly
Rent which was payable during the Term of this Agreement plus Leasehold Excise
Tax on the then current market value.
F. UTILITIES, SERVICES AND JANITORIAL
Lease Agreement—Communities in Schools of Renton 08-27-18 Page 4 of 13
1. As part of the City's satisfaction for the three-party agreement referenced
above, the monthly rent for the Premises includes the following services
provided by the City:
a. Utilities: water, sewer, electrical
b. HVAC
c. telecommunication services—phones, phone lines and IT services
c. routine maintenance
d. office supplies
e. furniture
f. mailing, printing and copying services including a copy machine.
CISR is at all times subject reasonable care and to not have excessive use
but rather to use due diligence to avoid excessive use and costs of the
utilities and services provided by the City.
CISR shall not use supplemental heating or cooling devices or alter the
temperature set points made by the City in conformance with the State
Energy Code.
In addition to other provisions related to liability in this Agreement, the
City shall not be liable for any damages to any person, property, or
monetary, nor shall CISR be relieved from any of its obligations under this
Agreement, as a direct or indirect result of temporary interruption in the
electrical power or any utilities or any of the services provided to the
Premises.
2. Janitorial Services
a. The City will provide janitorial services to portions of the facility
indicated as "common area" on Exhibit A, including the large
conference room, restrooms, and also the parking lot on the
premises.
b. The City will not provide janitorial services to First Floor Suite 200
or to the Second floor utilized by the CISR. The CISR is responsible
for janitorial services for this area may contract with a third party
janitorial service to provide such service. The CISR will keep this
entire area clean and free of litter and debris.
5. RIGHT OF ENTRY
Lease Agreement—Communities in Schools of Renton 08-27-18 Page 5 of 13
The City's representative(s) may enter the Premises during normal operating hours for
the purpose of inspecting or repairing the same. In the case of emergency, the City may
enter, inspect and repair as needed at any time.This right shall impose no obligation upon
City to make inspections to ascertain the condition of the Premises in addition to City's
responsibility to conduct annual inspections and shall impose no liability or responsibility
other than to inform CISR of any defect.
6. EQUALITY OF TREATMENT
CISR shall conduct its business in a manner that ensures fair, equal and non-
discriminatory treatment at all times in all respects to all persons without regard to race,
color, religion, sex, sexual orientation, marital status, age or national origin. No person
shall be refused service, be, shown discriminatory treatment, or be denied any privilege,
use of facilities, or participation in activities on the Premises based on: race, color,
religion, sex, sexual orientation, marital status, age, or national origin. Failure to comply
with any of the terms of this provision shall be a material breach of this Agreement.
7. NON- DISCRIMINATION
CISR shall comply with all applicable Laws regarding non- discrimination in employment,
the provision of services to the public in a non- discriminatory manner, and affirmative
action, including but not limited to the provisions of City of Renton Fair Practices Policy
as attached and fully incorporated by reference into this Agreement. CISR shall comply
with all provisions of the Americans with Disabilities Act.
8. INSURANCE
A. CISR's Insurance.
CISR shall secure and maintain the following insurance policies, and shall not
cancel or suspend the insurance policies identified below:
1. Commercial General Liability Insurance: Commercial general liability
insurance in the minimum amounts of$ 1, 000,000 for each occurrence/$
2, 000,000 aggregate throughout the duration of this Agreement.
2. Professional Liability Insurance: Professional liability insurance, in the
minimum amount of $ 1, 000,000 for each occurrence, shall also be
secured for any professional services being provided to City that are
excluded in the commercial general liability insurance.
3. Workers' Compensation: Workers' compensation coverage, as required by
the RCW 51, Industrial Insurance laws of the State of Washington.
4. Personal Property: CISR, at its expense, shall maintain in force during the
Term a policy of special form —causes of loss or all-risk property insurance
on all of CISR's alterations, improvements, trade fixtures, furniture and
other personal property in, on or about the Premises, in an amount equal
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to at least their full replacement cost. Any proceeds of any such policy
available to CISR shall be used by CISR for the restoration of CISR's
alterations, improvements and trade fixtures and the replacement of
Lessee's furniture and other personal property. Any portion of such
proceeds not used for such restoration shall belong to CISR.
5. City as an Additional-Insured: It is agreed that on CISR's commercial
General liability policy, the City of Renton will be named as an Additional-
Insured on a primary and non- contributory basis. Any coverage
maintained by the City of Renton is solely for the coverage and benefit of
Renton, and its elected officials, officers, agents, employees,
representatives and volunteers.
6. Verification of Coverage: Subject to the City's review and acceptance, a
certificate of insurance showing the proper endorsements, shall be
delivered to City before executing the work of this Agreement.
7. Cancellation of insurance coverage:The City shall be provided with written
notice of any policy cancellation within a minimum of two business days of
receipt of such notice by the policy holder.
B. Review of Policy: Upon request,the CISR shall give City a full copy of the insurance
policy for its records and for the City Attorney's or Risk Manager review.The policy
limits may be reviewed and the value reassessed annually.
C. Termination: Notwithstanding any other provision of this Agreement, the failure
of the CISR to comply with the above provisions of this section shall subject this
Agreement to immediate termination without notice to any person in order to
protect the public interest.
D. The certificate holder should read:
City of Renton
ATTN:Jeff Minisci, Facilities Director, Community Services
1055 South Grady Way
Renton, WA. 98057
Direct any questions, comments, or concerns to:
Gary B. Lamb, Risk Manager
425.430.7669 - direct
425.430.7665 -fax
glamb@rentonwa.gov
9. INDEMNIFICATION/ HOLD HARMLESS
Lease Agreement—Communities in Schools of Renton 08-27-18 Page 7 of 13
The CISR agrees to release, indemnify, defend, and hold harmless the City, elected
officials, employees, officers, representatives, and volunteers from any and all claims,
demands, actions, suits, causes of action, arbitrations, mediations, proceedings,
judgments, awards, injuries, damages, liabilities, taxes, losses, fines, fees, penalties,
expenses, attorney's or attorneys' fees, costs, and/or litigation expenses to or by any and
all persons or entities, arising from, resulting from,or related to the negligent acts, errors
or omissions of the Lessee in its performance of this Agreement or a breach of this
Agreement by CISR, except for that portion of the claims caused by the City's sole
negligence.
Should a court of competent jurisdiction determine that this agreement is subject to RCW
4.24.115, (Validity of agreement to indemnify against liability for negligence relative to
construction, alteration, improvement, etc.,of structure or improvement attached to real
estate...) then, in the event of liability for damages arising out of bodily injury to persons
or damages to property caused by or resulting from the concurrent negligence of the CISR
and the City, its officers, officials, employees and volunteers, CISR 's liability shall be only
to the extent of CISR's negligence.
It is further specifically and expressly understood that the indemnification provided in
this Agreement constitute Lessee's waiver of immunity under the Industrial Insurance
Act, RCW Title 51, solely for the purposes of this indemnification. The Parties have
mutually negotiated and agreed to this waiver.
The provisions of this section shall survive the expiration or termination of this
Agreement.
10. GOVERNING LAW COMPLIANCE WITH LAWS/ SEVERABILITY/JURISDICTION AND
VENUE/WAIVER.
A. CISR shall comply with all applicable Laws. This Lease shall be governed by, and
construed and enforced in accordance with, the laws of the State of Washington.
B. CISR shall not use the Premises for any illegal purpose or to violate any Law.
Lessee shall not create or allow any nuisance or hazardous materials on the
Premises. CISR shall not permit or do any act on the Premises that would increase
the rate of insurance on or for the Premises. CISR shall not damage or overload
the structural components of any structure,fixture, or part the Premises.
C. Severability: Should any of the provisions of this Lease be found to be invalid,
illegal or unenforceable by any court of competent jurisdiction, such provision
shall be stricken and the remainder of this Lease shall nonetheless remain in full
force and effect unless striking such provision shall materially alter the intention
of the parties.
Lease Agreement—Communities in Schools of Renton 08-27-18 Page 8 of 13
D. Jurisdiction and Venue: In the event any action is brought to enforce any of the
provisions of this Lease, the parties agree to be subject to exclusive in personam
jurisdiction in the Superior Court of the State of Washington in and for the County
of King or in the United States District Court for the Western District of
Washington.
E. Waiver: No waiver of any right under this Lease shall be effective unless contained
in a writing signed by a duly authorized officer or representative of the party
sought to be charged with the waiver and no waiver of any right arising from any
breach or failure to perform shall be deemed to be a waiver of any future right or
of any other right arising under this Lease.
F. The provisions of this section shall survive the expiration or termination of this
Agreement.
11. UNUSABILITY
Either party may terminate this Agreement in the event that all or a substantial portion
of the Premises is rendered unusable by an Act of God, fire, flood, earthquake, act of war
or other extraordinary casualty destroying or damaging the Premises by notice given the
other party within thirty(30)days after such conditions are discovered. Neither party shall
be required to restore or reconstruct the Premises. During any period of Premises use
subsequent to said thirty(30) days,the monthly payment payable may be reduced by the
ratio that the area rendered unusable by such extraordinary casualty and not
reconstructed or repaired bears to the total area of the Premises.
12. SURRENDER OF PREMISES AND REMOVAL OF CISR' S PROPERTY
A. Upon termination or expiration of this Agreement, CISR shall surrender the
Premises to City and promptly surrender and deliver to City all keys, passwords or
passcodes that it may have to all parts of the Premises.
B. The Premises shall be surrendered to City in as good a condition as at the date of
execution of this Agreement, except for the effects of reasonable wear and tear,
alterations,and repairs made with concurrence and written permission of the City,
and property damage by fire and other perils insured in contracts or policies of all
risk insurance.
C. Prior to the expiration of this Agreement, CISR shall remove from the Premises, at
its sole expense, all fixtures, equipment, furnishings, and other personal property
owned and placed in or on the Premises by CISR.
D. If after termination or expiration of this Agreement, CISR has not removed its
property and fixtures within the time allowed, City may, but need not, remove
said personal property and hold it for the CISR, or place the same in storage, all at
the expense and risk of the CISR, and CISR shall reimburse City for any expense
Lease Agreement—Communities in Schools of Renton 08-27-18 Page 9 of 13
incurred by the City in connection with such removal and storage. City shall have
the right to sell such stored property, without notice to CISR, after it has been
stored for a period of thirty (30) days or more; the proceeds of such sale to be
applied first to the cost of sale, second to the payment of charges for storage, and
third to the payment of any other amounts which may then be due from CISR to
the City, and the balance, if any and if requested, shall be given to CISR.
13. LIENS AND ENCUMBRANCES
CISR shall not have or allow any liens or encumbrances on the Premises. At the City's
request,CISR shall furnish City written proof of payment of any item which would or might
constitute the basis for such a lien on the Premises if not paid.
14. AMENDMENTS
The Parties reserve the right to amend this Agreement as may be mutually agreed. This
Lease shall not be amended or changed except by written instrument signed by both
Parties authorized representatives.
15. ASSIGNMENT OF AGREEMENT
CISR shall not assign or transfer this Agreement or otherwise convey any right, privilege
or interest granted by this Agreement or any part of the Premises without the City's prior
written consent. This Agreement and any right, privilege, or interest derived from this
Agreement shall not be transferable by operation of law, by any process, or by any court
proceedings. CISR shall not sub-lease or co-habitat businesses or other enterprises in or
on the Premises without prior written approval of the City of Renton.
16. NON-APPLICABILITY OF RELOCATION BENEFITS
CISR accepts and agrees that the signing of this Agreement does not entitle CISR to
assistance under RCW 8.26, Relocation Assistance— Real Property Acquisition Policy.
17. MEMORANDUM OF LEASE AGREEMENT
No Recordation Without Consent of the City: CISR shall not record this Lease or any
memorandum of this Lease without the City's prior written consent.
If Agreed - the Parties may enter into a short form Lease memorandum, in a form suitable
for recording under State of Washington law, referencing this Agreement, and all options
pertaining to this Agreement, which CISR may, at its expense, file in King County,
Washington.
18. Entire Agreement
This Lease sets forth the entire agreement of the parties as to the subject matter hereof
and supersedes all prior discussions and understandings between them.
IN WITNESS WHEREOF, the Parties agree that this Agreement shall become bind as of the
Effective Date noted above.
Lease Agreement—Communities in Schools of Renton 08-27-18 Page 10 of 13
CITY OF RENTON COMMUNITIES IN SCHOOLS OF RENTON
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Denis Law, Mayor G� By: h-,,YN,N\
Date signed: �t,`[r�1� PrinterName: ` GL-li'x. CI1-r-e/i
Title: (-CQc c} 1t,Q (')lk`r f
Date signed: 91/0
Attest:
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Jason A. th, City Clerk
Date attested: C 1 l' at X
APPROVED AS TO FORM ONLY
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Shane Moloney, City Attorney
Date: tH9-2., 'I Sa
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STATE OF WASHINGTON )
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COUNTY OF Kill )
Lease Agreement—Communities in Schools of Renton 08-27-18 Page 11 of 13
On this IP day of \fAN' � ,20 l$ , before me,the undersigned,a Notary Public in and for
the State of Washington, duly commissioned and sworn, personally appeared DENIS LAW to me known
to be the person(s)who signed as THE MAYOR of CITY OF RENTON, the Washington municipal corporation that
executed the within and foregoing instrument, and acknowledged said instrument to be his free and voluntary act
and deed and the free and voluntary act and deed of said Washington municipal corporation for the uses and
purposes therein mentioned; and on oath stated that he was authorized to execute the said instrument on behalf
of said Washington municipal corporation.
IN WITNESS WHEREOF I have`110 ti�o sset l�l�i7and and official seal the day and year first above written.
t� 1
c ,yg\ON E4 v' � >j(Signature of Ni tdry) ‘,
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U - • ` Print or stamp name of Notary)
UN , UBL'�' p NOTARY PUBLIC in and for the State of Washington, residing
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/°7777.'o„wA`�\� My Appointment Expires: (e�(� `LL'Iq
wvo
STATE OF WASHINGTON )
SS
COUNTY OF_ )
On this C;' day of �6.e1 rt ?27J,./n , 20j1L, before me,the undersigned,a Notar Public in and for
the State of Washington; duly commissioned and sworn, personally appeared 3c+ihsL 6ft,(v\e
to me known to be the xe" D;c dcr of �-, , ar*L acritetledged Ore said
instrument to be the free and voluntary act and deed of said [corporation or i erfitq11 6cfr'I?anR,I i'`tlae use
and purposes therein mentioned,and on oath stated that s/he was authorized to execute said instrument on behalf
of said [corporation or limited liability company].
IN WITNESS WHEREOF I have h set my hand and offici sea the day and year first above written.
‘\\�r�F14�P,111,
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%,/ o '° � 0 ▪ NOTARY PUBLIC in and for the State of Washington,
,15,1/n,,s.19-Ark.' ( residing at 1055 , ei-r- 4 wile >Penton
fMy Appointment Expires: i/ q I I C')
Lease Agreement—Communities in Schools of Renton 08-27-18 Page 12 of 13
Exhibit A
Maps/Drawings
Lease Agreement—Communities in Schools of Renton 08-27-18 Page 13 of 13
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