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HomeMy WebLinkAboutLease LAG-19-006 Lease Agreement City of Renton and the Renton Regional Community Foundation at Liberty Park Community Building THIS LEASE AGREEMENT("Agreement") is made and entered into this July 1, 2019 (the "Effective Date"), by and between the City of Renton ("City"), a Washington municipal corporation, and Renton Regional Community Foundation ("RCF") a Washington nonprofit corporation, for the purpose of general business and administrative office for RCF. City and RCF are collectively referred to as "Parties." WHEREAS, the City has formerly leased space to RCF in the Liberty Park Building; and WHEREAS, the City and RCF desire to continue their relationship and to enter into a new agreement; and 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 does hereby lease to RCF Suite 100 of that certain real property located at 1101 Bronson Way N, Renton,WA 98057,commonly known as the"Liberty Park Building" (referred to herein as the "Premises"). B. Parking is available in an adjacent public lot on a first-come,first-served basis. C. RCF 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. RCF 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 RCF accepts all related liabilities and risks related to use of the Premises. E. Signage and Graphics: RCF 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. RCF will follow all City sign codes, including for A-frame signs. RCF 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. Lease Agreement Renton Community Foundation Page 1 of 12 F. RCF 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 RCF. 2. TERM AND TERMINATION A. Term: This Agreement shall be for an initial term of one (1) year from the beginning on July 1st, 2019, unless otherwise terminated pursuant to the termination section of this Agreement ("Initial Term"). After the initial one (1) year term of this Agreement, it shall be automatically renewed once for an additional one (1) year period of time ("Extension Term"), unless notice of termination is given by the City or the RCF. 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 to the other Party 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 set 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 Renton Regional Community Foundation (RCF) 1101 Bronson Way N/PO Box 820 Renton, WA 98057 425-282-5199 • Lease Agreement Renton Community Foundation Page 2 of 12 4. CONSIDERATION AND PAYMENT A. Monthly Lease Payment: 1. RCF agrees to pay unto the City as rental for the Premises, seven hundred dollars ($700) ($1.37/square foot for 512 sq ft) per month —this is the fair market value, (**plus leasehold excise tax if applicable, in the amount of xxx ($##)), for a total monthly payment of SEVEN HUNDRED DOLLARS ($700) (hereinafter "Payment"). 2. RCF may obtain, on an annual basis, a non-profit leasehold excise tax exemption certificate from the Department of Revenue, and as long as this certification is provided to the City and in force, RCF will be exempted from paying leasehold excise tax portion of the Payment. **Historically RCF has submitted documentation of non-profit leasehold excise tax exemption. 3. The monthly lease payment for any Extension Term shall be an amount equal to the prior Term Payment plus fifty dollars ($50), **plus leasehold excise tax if applicable ("Extension Term Payment"). 4. If after the end of the initial Term or any Extension Term, RCF continues to use the Premises without entering into a new lease with the City, and/or City has not sent RCF written notice to terminate or not renew the Agreement, RCF shall owe City a monthly lease payment on a month-to- month basis on the same terms and conditions of this Agreement, and any new terms required by the City. The monthly lease payment shall be an amount equal to one hundred twenty-five percent (125%) of the current Payment or Extension Term Payment which was payable during the Term or Extension Term of this Agreement plus leasehold excise tax on the then current market value ("Month-to-Month Payment"). B. Due Date: Payment is due on the first day of each and every calendar month during the duration of this Agreement. C. All payments shall be paid or delivered to: RE: LAG Accounts Receivable 1055 S. Grady Way 5th Floor Renton, Washington 98057. Lease Agreement Renton Community Foundation Page 3 of 12 D. Late Payment: If any required Payment (including any Extension Term Payment and Month-to- Month Payment) is not paid by RCF 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. E. City's receipt or acceptance of any Payment, Extension Term Payment, or Month- to-Month Payment, with knowledge of RCF's breach of this Agreement or RCF'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. F. Utilities, Services and Janitorial: 1. Utilities and Services: This Lease is what is commonly called a "full service lease", it being understood that the City shall receive the monthly lease Payment set forth above free and clear of any and all impositions, taxes, real estate taxes, liens, charges or expenses of any nature whatsoever in connection with the ownership and operation of the Premises. The following services will be provided by the City: a. Routine maintenance; b. Utilities: water, sewer, and electricity; and c. HVAC. RCF is at all times subject to reasonable care and shall use due diligence to avoid excessive use and costs of the utilities and services provided by the City. RCF 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 or property, or for monetary loss, nor shall RCF be relieved from any of its obligations under this Agreement, as a direct or indirect result of temporary interruption in electricity, any other utilities, or any of the services provided to the Premises. Lease Agreement Renton Community Foundation Page 4 of 12 2. Janitorial Services: The City will provide janitorial services to portions of the facility used by RCF. RCF shall keep the Premises clean and free of litter and debris. 5. RIGHT OF ENTRY 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 RCF of any defect. 6. EQUALITY OF TREATMENT RCF 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 RCF 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. RCF shall comply with all provisions of the Americans with Disabilities Act. 8. INSURANCE A. RCF's Insurance: RCF 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. Lease Agreement Renton Community Foundation Page 5 of 12 3. Workers' Compensation: Workers' compensation coverage, as required by the RCW 51, Industrial Insurance laws of the State of Washington. 4. Personal Property: RCF, 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 RCF's alterations, improvements, trade fixtures, furniture and other personal property in, on or about the Premises, in an amount equal to at least their full replacement cost. Any proceeds of any such policy available to RCF shall be used by RCF for the restoration of RCF's alterations, improvements and trade fixtures and the replacement of RCF's furniture and other personal property. Any portion of such proceeds not used for such restoration shall belong to RCF. 5. City as an Additional Insured: It is agreed that on RCF'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 the City, 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 this Agreement. 7. Cancellation of insurance coverage:The City shall be provided with written notice of any policy cancellation within a minimum of two (2)business days of receipt of such notice by the policy holder. B Review of Policy: Upon request, the RCF shall give the City a full copy of the insurance policy for its records and for the City Attorney's or Risk Manager's 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 RCF 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 Lease Agreement Renton Community Foundation Page 6 of 12 Direct any questions, comments, or concerns to: Kelsey R. Ternes, Risk Manager, City of Renton kternes@rentonwa.gov Tel: 425-430-7669 Fax: 425-430-7665 9. INDEMNIFICATION/ HOLD HARMLESS The RCF agrees to release, indemnify, defend, and hold harmless the City, its 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 RCF in its performance of this Agreement or a breach of this Agreement by RCF, 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 RCF and the City, its officers, officials, employees and volunteers, RCF's liability shall be only to the extent of RCF's negligence. It is further specifically and expressly understood that the indemnification provided in this Agreement constitutes RCF'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. RCF shall comply with all applicable laws. This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of Washington. B. RCF shall not use the Premises for any illegal purpose or to violate any law. RCF shall not create or allow any nuisance or hazardous materials on the Premises. RCF shall not permit or do any act on the Premises that would increase the rate of Lease Agreement Renton Community Foundation Page 7 of 12 insurance on or for the Premises. RCF 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 Agreement be found to be invalid, illegal or unenforceable by any court of competent jurisdiction,such provision shall be stricken and the remainder of this Agreement shall nonetheless remain in full force and effect unless striking such provision shall materially alter the intention of the parties. 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, Maleng Regional Justice Center or in the United States District Court for the Western District of Washington. E. Waiver: No waiver of any right under this Agreement 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 Agreement. 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 of 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 RCF' S PROPERTY A. Upon termination or expiration of this Agreement, RCF 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 of 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, Lease Agreement Renton Community Foundation Page 8 of 12 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, RCF 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 RCF. D. If after termination or expiration of this Agreement, RCF 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 RCF, or place the same in storage, all at the expense and risk of the RCF, and RCF shall reimburse City for any expense incurred by the City in connection with such removal and storage. City shall have the right to sell such stored property, without notice to RCF, 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 RCF to the City; and the balance, if any and if requested, shall be given to RCF. 13. LIENS AND ENCUMBRANCES RCF shall not have or allow any liens or encumbrances on the Premises. At the City's request, RCF 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 Agreement shall not be amended or changed except by written instrument signed by both Parties authorized representatives. 15. ASSIGNMENT OF AGREEMENT RCF 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. RCF 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 RCF accepts and agrees that the signing of this Agreement does not entitle RCF to assistance under RCW 8.26, Relocation Assistance - Real Property Acquisition Policy. 17. MEMORANDUM OF LEASE AGREEMENT No Recordation Without Consent of the City: RCF shall not record this Agreement or any memorandum of this Agreement without the City's prior written consent. Lease Agreement Renton Community Foundation Page 9 of 12 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 RCF may, at its expense, file in King County, Washington. 18. ENTIRE AGREEMENT This Agreement 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 binding as of the Effective Date noted above. CI OF RENTO RENTON REGIONAL COMMUNITY FOUNDATION d ..,.g.,( Denis Law, Mayor . By: Date Signed: .7 )-6 17 Printed Name: 1_,1_ rk Os_S Title: 6-e G-r.��{'IL,e_ nye r_.b{ Date Signed: (0( 2.b(q Attest: L(` Jas A. Set City CI k - •. ��,,k"‘""" r+i+r,,,�� D e Attested: ) �y r f ,%t� . O i •,c ?.�,., � 4 �t, ion 9 i% APPROVED AS TO FORM ONLY _ Nk Shane Molone , City ttorney ,, �� ,,,,:11,,,,,,,,,.%.-,c1 `% `� /, „°RATED SE°s.'`. Date: 2 Non standard clb 21 Lease Agreement Renton Community Foundation Page 10 of 12 STATE OF WASHINGTON fl ) SS COUNTY OF K.i✓�q ) On this p1 I day of J ,20 1' , 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 hereunto set my hand and official seal the day and year first above written. 11 C�7�`� ,�aa",J,,y''F% , / u,- t gP y�ON 4A,61,4 ,�� i�� (Signature of Notary) • s s 1 u 7$767 1 z Print or stamp name of Notary) c, = O + NA ,, 8.4. %, .=NOTARY PUBLIC in and for the State of Washington,residing at lllO„W AS?``�� My Appointment Expires: lJ -('_Zo 2-3 STATE OF WASHINGTON ) n )SS COUNTY OF ) On this (ej day of , 20 1 c), before me,the undersigned,a Wary public in a d for the State of Washi ton, duly ommissioned and sworn, personallyappeared 6 f� pP 1th-.e � SS to me known to be the e. c r-ec.{.--.7,(of Renton Regional Community Foundation,and acknowledged the said instrument to be the free and voluntary act and deed of said corporation, for the uses and purposes therein mentioned,and on oath stated that s/he was authorized to execute said instrument on behalf of said corporation IN WITNESS WHEREOF I have hereunto set my hand and official seal the day and year first above written. ift$:t (Signature tary) co 5 0; kcjkG Z i (Print or stamp name of Notary) 9 11 PUBS- ti f* ',I 0 20.174 .1 NOTARY PUBLICin andJor the State of Washington, residing at My Appointment Expires: 2-2 2—2 Lease Agreement Renton Community Foundation Page 11 of 12 ossommismnift • Exhibit A—Liberty Park Floor Plan Extibit A- Libel/y Pat Tian PIddi I -1 COineV4:10 Ar ed 11.10 =# stile 26),,,,;••= = F IRS1 F PLAN SEC:UN 1.; I'LAN a.4 Lease Agreement Renton Community Foundation Page 12 of 12