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HomeMy WebLinkAboutContract ' CAG-18-256 OCCUPANCY AND HOLD HARMLESS AGREEMENT THIS OCCUPANCY AND HOLD HARMLESS AGREEMENT ("Agreement"), dated for reference purposes as �D�mbzX 1 , 2018, is made by and between John Carson an individual and on behalf of his/her marital community ("Occupant"), and City of Renton, a Washington municipal corporation (the "City"). I. RECITALS A. The City owns and operates the Renton Municipal Airport ("Airport"). B. Under two lease agreements with the City, Kaynan, Inc. ("Kaynan") leased premises on the Airport since 1984 (City file no. LAG 003-84) and 1985 (City file no. LAG 011-85) (the two leases are hereinafter the "Leases"). The leased premises were located in the Airport's southeast corner, addressed as 350 Airport Way (the "Premises"). C. The Premises are developed with five buildings and include hangar space. Kaynan subleased a portion of the premises to Occupant. During the terms of the Leases, Occupant was a tenant of Kaynan and was not a tenant of the City. Attached hereto as Exhibit A is a copy of Occupant's lease with Kaynan for a portion of the Premises. D. The Leases had termination dates in 2016, but Kaynan remained on the Premises on a month-to-month term after the termination date while Kaynan and the City negotiated a new lease. In 2018, Kaynan elected to end negotiations for a new lease, and the Leases formally terminated on October 1, 2018. Thus, between the mid-1980s and October 1, 2018, Kaynan controlled the Premises. E. In anticipation of the October 1, 2018, termination date, the City engaged a consultant, Martyn Daniel LLC, to conduct an inspection of the five buildings located on the Premises. F. Martyn Daniel LLC provided a report to the City dated September 12, 2018 that identifies deficiencies found in the five buildings including but not limited to the following: • Mold; • Leaking roofs and walls; • Other structural defects; and • Improvements installed within the Premises that do not comply with applicable codes or otherwise pose risk, including but not limited to tenant-installed electrical work. Renton Municipal Airport—Occupancy and Hold Harmless Agreement p R ! G I N A L Page 1 of 7 , G. The deficiencies identified in the Report arose during the term of the Leases while Kaynan controlled the Premises. H. O_ccupant expressly acknowledqes receipt of a copy of the Report and asserts that Occupant had sufficient time to review the Report prior to executinq this Agreement. I. The Report estimates repair costs to total $1,088,693. Given the Report's high estimated cost to repair the Premises' buildings, the City is not in a position as of the date of this Agreement to repair the buildings. For that reason,the City will not enter into a landlord-tenant relationship with Occupant. Thus, because (1) Occupant was a tenant of Kaynan and not the City, (2) Kaynan's Leases terminated October 1, 2018, and (3) the City will not enter into a landlord- relationship with Occupant, Occupant has no legal right to remain on and use the Premises. J. Notwithstanding the foregoing,the City is sympathetic to Occupant's situation in having Kaynan end its leasing arrangement with the City before Occupant secured space elsewhere. K. For the reason described in the preceding recital, the City is willing to forbear on its rights to seek removal of Occupant from the Premises and is willing to allow Occupant to remain on and use the Premises for a short period of time—and further subject to notice to vacate—provided that Occupant agree to fully hold the City harmless and comply with the City's terms and conditions. Occupant acknowledges that it benefits from remaining on the Premises and from such an arrangement and desires to enter into an agreement allowing such occupancy. Occupant and the City mutually desire to execute this Agreement to set forth the terms and conditions of their agreement. L. Both parties acknowledge sufficient time prior to executing the Agreement to review the Agreement and to retain and review with legal counsel of their choosing, if they so choose. II. AGREEMENT For and in consideration of the mutual benefits to be derived and other valuable consideration the sufficiency of which is hereby acknowledged, the parties hereby agree as follows. 1. INCORPORATION OF RECITALS The recitals above are fully incorporated as if set forth herein. Renton Municipal Airport—Occupancyand Hold Harmless Agreement Page 2 of 7 2. OCCUPANCY OF PREMISES Until the termination of this Agreement, Occupant may continue to occupy the same portion of the Premises as authorized under Occupant's lease with Kaynan as indicated in Exhibit A. The occupancy shall be subject to the following: (a) Occupant expressly acknowledges that Occupant has decided to occupy the Premises in Occupant's sole judgment after having read and reviewed the Report and has not based its decision to occupy the Premises on any assurance or representation from the City. (b) Due to the Report's findings regarding the conditions of the buildings on the Premises, Occupant shall not use the Premises for human occupancy. For example, no office use, no repair work within the Premises, etc. (c) Occupant acknowledges and agrees to the following as-is and where-is terms, disclaimers, and waivers, all of which shall survive the termination of this Agreement: 1. Occupant assumes all risk of occupying the Premises. 2. The City makes no warranties whatsoever as to the condition or suitability of the Premises, in light of the Report and/or otherwise. THIS AGREEMENT IS MADE ON AN "AS IS, WHERE IS" BASIS. 3. The City shall have no obligation or liability to Occupant, whether arising in contract (including warranty), tort (including active, passive or imputed negligence), or otherwise, for loss of use, revenue or profit or for any other incidental or consequential damages. 4. Occupant hereby releases the City from, and waives, Occupant's entire claim of recovery for loss of or damage to property or for bodily injury or death arising from or occurring during occupancy of the Premises, including but not limited to loss, damage, injury, or death arising from or related to any deficiency identified in the Report. (d) Occupant shall be responsible for any damage arising to the Airport from the activity of Occupant on the Premises. Renton Municipal Airport—Occupancy and Hold Harmless Agreement Page 3 of 7 (e) Occupant shall not make any improvements or alterations to the Premises. (f) In its occupancy of the Premises, the Occupant shall not violate any applicable law, ordinance, deed, restriction or regulation affecting the Premises or any part thereof. 3. TERM This Agreement shall commence and take effect on the last date signed below (the "Effective Date") and shall continue (unless earlier terminated)for the ensuing ninety (90) days. Except in the event of an emergency, either party may terminate this Agreement early by giving no less than 14 calendar days' notice of such termination to the other party. In the event of an emergency, this Agreement may be immediately terminated. 4. FEE Occupant shall pay a monthly fee of three hundred dollars ($300.00) to the City as an offset against the City's costs incurred in administering this Agreement. The first payment shall be prorated and due to the City within fourteen (14) days of the Effective Date, and subsequent payments shall be payable promptly in advance on the first day of each and every month during the term of this Agreement. All payments shall be made to the City of Renton, Administrative Services Department - Fiscal Services Division, 1055 South Grady Way, Renton, Washington 98057. 5. HOLD HARMLESS As a supplement to any other related provision in this Agreement and not as a limitation in any way, Occupant will indemnify, defend, release and hold harmless, the City and its officials, employees, and other agents (hereinafter "Indemnitees") from and against all actions, causes of action, liabilities, claims, suits, penalties, fines,judgments, liens, awards, damages, or losses (including but not limited to loss of grant funds, obligations to repay grant funds, or loss of other revenues) of any kind whatsoever (hereinafter "Claims"), for injury to or death of any person (including without limitation claims brought by invitees of Occupant) or damage to or loss of any property or cleanup of any discharge or release by Occupant or violation or alleged violation of any law or regulation, and expenses, costs of litigation, and reasonable attorneys' fees related thereto, or incident to establishing the right to indemnification, to the extent such Claims arise out of or are in any way related to this Agreement or the presence on the Premises by Occupant or invitees. Occupant expressly waives any immunity under industrial insurance whether arising from Title 51 of the Revised Code of Washington or any other statute or source, to the extent of the indemnity set forth in this paragraph. In the event that Occupant is successful in proving that the foregoing indemnity is Renton Municipal Airport—Occupancy and Hold Harmless Agreement Page4of7 limited by RCW 4.24.115, Occupant shall defend, indemnify and hold harmless the Indemnitees to the full extent allowed by RCW 4.24.115. In no event shall Occupant's obligations hereunder be limited to the extent of any insurance available to or provided by Occupant. Nothing in this section is intended to require Occupant to indemnify, defend, or hold harmless from any Claims to the extent they arise out of the sole negligence or willful misconduct of any of the Indemnitees. This section shall survive the termination of this Agreement. 6. REMEDIES OF THE CITY Upon termination of this Agreement, the City may enter the Premises, and by any lawful manner, remove Occupant. Each right and remedy provided for in this Agreement shall be cumulative and shall be in addition to every other right or remedy provided for in this Agreement or now or hereafter existing at law or in equity, and the exercise or beginning of the exercise of any one or more of the rights or remedies provided for in this Agreement or now or hereafter existing at law or in equity shall not preclude the simultaneous or later exercise of any or all other rights or remedies provided for in this Agreement or now or hereafter existing at law or in equity. This section shall survive the termination of this Agreement. 7. NO WAIVER No failure by either party to insist upon the strict performance of any agreement, term, covenant or condition hereof or to exercise any right or remedy consequent upon a breach thereof shall constitute a waiver of any such breach or of such agreement, term, covenant, or condition. No agreement, term, covenant, or condition hereof to be performed or complied with by either party, and no breach thereof, shall be waived, altered or modified except by a written instrument executed by the parties. No waiver of any breach shall affect or alter this Agreement, but each and every agreement, term, covenant and condition hereof shall continue in full force and effect with respect to any other then existing or subsequent breach thereof. 8. MISCELLANEOUS A. No Assi�nment. Occupant shall not assign this Agreement in whole or in part. Renton Municipal Airport—Occupancy and Hold Harmless Agreement Page 5 of 7 B. Notices. Where notice is required or otherwise given under this Agreement, it shall be deemed sufficient, if such notice is addressed as shown below: The City: Airport Manager Renton Municipal Airport 616 West Perimeter Road, Unit A Renton, Washington 98057 Occupant: John Carson 13607 1715t Ave SE Renton, WA 98059 If no contact information is listed for Occupant, above, the City may use any reasonable means to locate and notify Occupant. All notices shall be given either by hand or by deposit into the United States mail postage prepaid. Notices shall be deemed given when delivered if given by hand, or 72 hours after deposit into the United States mail. Formal notice may be accompanied by a courtesy notice delivered via telephone call and/or electronic mail. C. Captions. The marginal headings or titles to the sections of this Agreement are not a part of the Agreement but are inserted only for convenience. They shall have no effect on the construction or interpretation of any part of this Agreement. D. Time is of the Essence. Time is of the essence in the performance of all covenants and conditions of this Agreement in which time is a factor. E. Choice of Law. This Agreement shall be governed by the Laws of the State of Washington, without reference to its choice of law rules. F. Complete A�reement. This Agreement contains the entire and complete agreement between the parties hereto, with all previous negotiations, warranties, covenants, conditions Renton Municipal Airport—Occupancy and Hold Harmless Agreement Page 6 of 7 , ., ti and promises being merged herein. The City and Occupant further agree that no alteration, amendment or modification to this Agreement shall be binding upon the City or Occupant uniess same is first reduced to writing ar�d signed by both the City and Occupant. G. Counterparts. This Agreement may be executed in any number af counterparts, each of which when executed and delivered shal! constitute an originaf Agreement, but all af which together shal) constitute ane and the same Agreement. �xecuted by the parties: OCCUPANT THE CITY OF RENTON gy; .��,j/y! ��i�S��fj Sy: Printed name: ,J''G�/;�� enis Law, Mayor Company(if applicable): /�?��n�r�P ' Title (if applicable): Date signed: �� �� � Date signed: �1 f� 3� �`� Attested to By: � 3� C,� Jason S h, City erk Appr ved as to Form By: �� �� Shane Moloney, City A�y `���������,�i i����r,��� h4a,��e��'�`0�1���I���N�"o''^�,,,. - e� " ,,'y ; _ ; ,� - : * : �EAL _ * _ � r ;, � _o = : y ,� ,.` _ '�, � �, .�. .•�: �i�� O����iii�ii�tia���` .`�.```� ���i�����RA`ED`s��\���`�� Rentan Municipat Airport—Occupancy and Hold Harmless Agreement Page 7 of 7 . � rt��.����'�y"`�R a � � � - �,; �,..; x� ��' �; . ; `�- z� � , , ; _ ��,� � �,�'.. �° �` � EXHIBITA � �� ��;, Trax�sfer of Lease ���;; ,�,,,� ���� �1�Ilc'121 .�i�Ilg1I' #�,2, �@21�411 MU112C1�71� .�1-1�1�1't �_� '��'� �";� T�; O.�er�*ie�,� a k: I; C1a�Ttoia Chas�, hereb}r #�ansf�r all rights znd re�s�crnsibili�ies fo�• hai�gar ##72, leased � frona Ka�rnan Ine, ori�ial lease Dat� 1 Apri1207.5, to Joli:n Carst�n. The effective date of this tras�sfer is 2 August 201.7. �� �.��`..'� CI��-ton Ghase �249 Tbth AzJ� 1VE � Seartl�, t�A 98xOS `�.� � .is;;a,� ,,�.tt�rNt .> ..h�. 4�.. ' .:: ae:�§� }'�� �, k � � �� � F; . �'.: � s � �� ` �� � � ` �� f � `�' =�5�t„� `.. u ��� Y Z a' ^ '� 3*�� ,� �� w"2g"` � �53�'^ °���� :'��rb��4�#� .� { H �� ���� � b -' I Y�*�^+ .:+.� ��, :. Y� �� �� 4gp,�� *�yX 4 � � ���� � F ��. .k'.�S. 4�* n*.. 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Lessor shall lease to Lessee certain space in the above described alrplane hangarfor the purpose of storingthe Lessee's ;��v �., �•, �� Lo r- Nb `; `/ � i) � (descriptian and registration number) 2. For rental of the abave-mentioned space,the Lessee shali pay to the L.essor a cleaning deposit of$100, refundable upon request if the hangar is left clean and swept out upon vacating,and the sum of$ S�/2 i per month due, in advance,on the first day of each and every month. 3. Thls Lease Agreement shall be on a "month-to-month" basis with each party being entitled to terminate thls l.ease Agreement pursuant to the l.andlord- Tenant�aws of the State of Washingkon. 4. Lessee shall use the leased premises solely for the storage of his airplane. 5. The Lessee sha II not have the right to asslgn this Lease Agreement nar to sublet his storage space without tha prior written consent of the Lessor. 6. The l.essee agrees that he will defend anci indemnify the Lessor on any and all clafms, lawsuits or ather proceedings arising in connectlon with the Lessee's use and occupancy of the airplane hangar. This inCludes, but is not lirnited to, a situation where the Lessee causes damage ta an aircraft belonging to another tenarit and thattenant commences legal praceedings against the landlord andJor the Lessee herein. 7. In fhe event the Lessee shall fail to keep and pertorm any of the covenants and agreements herein contained, including the payment of rent, the Lessor may terminate this iease Agreement and may avail himseff af the rights set forth in the State landlord-Tenant Act. This would include the right ta require that the Lessee remove his alrcraft fram the premises and inciudes the further right to seek damages for all unpaid rents. 8. If, by reason of any default or breach an the pa�t of either party in the perFarmance of any of the pravisions of this L.ease, a legal action is instituted, the losing party agrees ta pay al! reasonable costs and attorney's fees in connection therewith_ It is agreed#hat the event af any lega! ac#ian brought under the terms of this Lease shall be in King County, Washington. 9. The covenants and agreements of this fease shall be binding upon the parties,their heirs, executor, administrators, successors and assigns. 10.Any natice required tc� be given by either party to the ather sha(t be depasited in the United States mail, postage prepaid, and addressed as follows: LESSOR: KAYNAN, INC, 350 AiRP�RT WAY RENTON, WA 98057 LESSEE: C��Dy C�IQ.$�- IN WITNESS WHEREOF, the partfes hereto have set their hands this �-a day of /�F;�-/c. , L 0/-s. LESSOR: KAYNAN, INC. ' LESSEE: C;.(�i f� —z!`�...__..-- C:KAYNAN:FORMS:HANGAR LEASE AGREEMENT