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HomeMy WebLinkAboutLease I' LAG-10-002 LEASE This Lease is made and entered into this j5tKday of "y, 2010, by and between the City of Renton ("City"), a municipal corporation, and the Renton Community Foundation, a nonprofit corporation ("Tenant"). 1. LEASE: The City does hereby lease to Tenant Suite 100 of that certain real property located at 1119 Bronson Way N, Renton, WA 98055, commonly known as the "Liberty Park Building". The floor plan of the property is shown on Exhibit A, attached hereto and incorporated by reference as if fully set forth. 2. TERM: This Lease shall be for an initial term of two (2) years from the date of signing, unless otherwise terminated pursuant to the termination section of this Lease. After the initial two (2) year term of this Lease, 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 Tenant, pursuant to the termination section of this Lease, such notice given at least sixty (60) days prior to the end of the term of this Lease. 3. LEASE PAYMENTS: A. Monthly Lease Payment: Tenant agrees to pay unto the City as rental for the premises, a monthly payment of six hundred dollars ($600), plus excise tax of seventy-seven dollars and fifty cents ($77.50) for a total monthly amount of six hundred seventy-seven dollars and fifty cents ($677.50) payable in advance on the first day of each and every calendar month during the term of this lease at such place as the City shall designate from time to time in writing. Tenant may obtain, on an annual basis, a non-profit excise tax exemption certificate from the 1 *Awe° N` Department of Revenue, and as long as this certification is provided to the City and in force, Tenant will be exempted from paying the excise tax portion of the monthly payment. Rental for any period during the term of this lease which is less than one (1) month shall be paid in a pro rata portion of the monthly lease payment installment amount. B. Monthly Lease Payment Adjustment: Commencing August 1, 2011, and every year thereafter during the term of the lease, there shall be an adjustment in the monthly lease payment sum to reflect the change in the Consumer Price Index of the U.S. City Average, All Items Index (1982-84 = 100)for all urban consumers as compiled by the Bureau of Labor Statistics of the United States Department of Labor. The base period for the determination of the change in the Consumer Price Index will be the twelve (12) month period ending June 30, 2011. The monthly lease payment adjustment shall be on the basis of the percentage change of the Consumer Price Index between July 1, 2010, and June 30, 2011, and the corresponding month of each year period thereafter. In no event will the monthly lease payment be less than the amount agreed for the initial lease period. If at the time of monthly lease payment adjustment the Index is no longer published, the parties shall adopt for use such other index as is then generally recognized and accepted for similar determinations of purchasing power. C. Additional Charges: 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 monthly rent shall include utilities, and routine maintenance, HVAC, and janitorial services as determined by the City. It is also understood by the Tenant that due diligence shall be taken at all 2 %WO *r0` times to avoid excessive use of utilities, and that Tenant shall not make use of supplemental heating or cooling devices, or alter the temperature set points made by the City in conformance with the State Energy Code. It is the intention of the parties hereto that this Lease shall not be terminable for any reason by the Tenant and the Tenant shall in no event be entitled to any abatement of or reduction in monthly lease payments payable hereunder, except as herein expressly provided. Any present or future law to the contrary shall not alter this agreement of the parties. D. Late Charges: Tenant hereby acknowledges that late payment by Tenant to the City of monthly lease payment and other sums due hereunder will cause Tenant to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. Such costs include, but are not limited to, processing and accounting charges, and late charges which may be imposed on the City by the terms of any mortgage or trust deed covering the premises. Accordingly, if any monthly lease payment installment or any other sum due from Tenant shall not be received by the City or the City's designee within five (5) days after written notice that said amount is past due, then Tenant shall pay to the City a late charge equal to five percent (5%) of such overdue amount. The parties hereby agree that such late charge represents a fair and reasonable estimate of the cost the City will incur by reason of late payment by Tenant. Acceptance of such late charge by the City shall in no event constitute a waiver of Tenant's default with respect to such overdue amount, nor prevent the City from exercising any of the other rights and remedies granted hereunder. 3 4. DEFAULTS/REMEDIES: A. Defaults: The occurrence of any one or more of the following events shall constitute a default and breach of this Lease by Tenant: (i) The vacating or abandonment of the premises by Tenant. (ii) The failure by Tenant to make any payment of rent or any other payment required to be made by Tenant hereunder, as and when due, where such failure shall continue for a period of three (3) days after written notice thereof from the City to Tenant. (iii) The failure by Tenant to observe or perform any of the covenants, conditions or provisions of this Lease to be observed or performed by Tenant, other than described above, where such failure shall continue for a period of thirty (30) days after written notice thereof from the City to Tenant; provided, however, that if the nature of Tenant's default is such that more than thirty (30) days are reasonably required for its cure, then Tenant shall not be deemed to be in default if Tenant commenced such cure within said thirty (30) day period and thereafter diligently prosecutes such cure to completion. (iv) The making by Tenant of any general assignment, or general arrangement for the benefit of creditors; (v) The filing by or against Tenant of a petition to have Tenant adjudged a bankrupt or a petition for reorganization or arrangement under any law relating to bankruptcy (unless, in the case of a petition filed against Tenant, the same is dismissed within sixty(60) days; 4 `.rr we (vi) The appointment of a trustee or receiver to take possession of substantially all of Tenant's assets located at the premises or of Tenant's interest in this Lease where possession is not restored to Tenant within thirty(30) days; (vii) The attachment, execution or other judicial seizure of substantially all of Tenant's assets located at the premises or of Tenant's interest in this Lease, where such seizure is not discharged within thirty(30) days. B. Remedies in Default: In the event of any such default or breach by Tenant, the City may at any time thereafter, with or without notice or demand and without limiting the City in the exercise of any right or remedy which the City may have be reason of such default or breach: (i) Terminate Tenant's right to possession of the premises by any lawful means, in which case this Lease shall terminate and Tenant shall immediately surrender possession of the premises to the City. In such event the City shall be entitled to recover from Tenant all damages incurred by the City by reason of Tenant's default including, but not limited to, the cost of recovering possession of the premises; expenses of reletting, including necessary renovation and alteration of the premises, reasonable attorney's fees, and any real estate commission actually paid; the worth at the time of award by the court having jurisdiction thereof of the amount by which the unpaid monthly lease payment for the balance of the term after the time of such award exceeds the amount of such rental loss for the same period that Tenant proves could be reasonably avoided; the accelerated balance of unpaid rental due during the remainder of the Lease term; and that portion of the leasing commission paid by the City applicable to the unexpired term of this Lease. Unpaid monthly lease payment installments or 5 *me other sums shall bear interest from the date due at the rate of twelve percent (12%) per annum. In the event Tenant shall have abandoned the premises, the City shall have the option of (1) retaking possession of the premises and recovering from Tenant the amount specified in this subparagraph (i), or(2) proceeding under subparagraph (ii) below. (ii) Maintain Tenant's right to possession, in which case this Lease shall continue in effect whether or not Tenant shall have abandoned the premises. In such event, the City shall be entitled to enforce all of the City's rights and remedies under this Lease, including the right to recover the monthly lease payment as it becomes due hereunder. (iii) Pursue any other remedy now or hereafter available to the City under the laws or judicial decisions of the State in which the premises are located. C. Default by the City: the City shall not be in default unless the City fails to perform obligations required of the City within a reasonable time, but in no event later than thirty (30) days after written notice by Tenant to the City specifying wherein the City has failed to perform such obligation; provided, however, that if the nature of the City's obligation is such that more than thirty(30) are required for performance then the City shall not be in default if the City commences performance within such thirty (30) day period and thereafter diligently prosecutes the same to completion. 5. GENERAL LEASE PROVISIONS: A. The City shall provide routine janitorial services for the premises. B. So long as the other suites of the Liberty Park Building remain unoccupied,Tenant and the City shall share the portions of the facility so indicated as "common area" on Exhibit A, including the large conference room, restrooms, and also the parking lot on 6 'fir►: 'wow the premises. Tenant shall have priority use of the large conference room for its monthly board meetings and shall provide those dates to the City at least three (3) months ahead of time. However, if the remainder of Liberty Park Building becomes leased, then Tenant may no longer have use of the conference room of the "common area" depicted in Exhibit A. Should this occur, City shall construct a demising wall separating the large conference space, as depicted in Exhibit B, attached hereto and incorporated by reference as if fully set forth, providing secure entry provisions and shall make alternative occasional conference room facilities available to Tenant upon Tenant's request per this provision. C. Tenant shall provide its own furniture. D. Tenant may provide signage at its own expense; however, the design, size, and location must be preapproved in writing by the City. E. There shall be no reserved parking spaces; parking is first-come, first- served basis. F. Tenant 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 Tenant. 6. TERMINATION: A. Voluntary by Tenant: Tenant may terminate this Lease, after its initial two (2) year term, by giving the City sixty (60) days notice prior to the termination date. Tenant shall also have the right to terminate this tenancy upon any extended term, by giving notice of intent to terminate the tenancy at least sixty (60) days prior to the end of any extended term. 7 'V B. Voluntary by City: The City may terminate this Lease by the giving of ninety (90) days notice of intent to terminate the Lease before the expiration of the initial two (2)year term, or any extended term. C. At the time of termination, the facility shall be restored to original condition, less typical wear and tear, unless the City agrees to accept it "as-is" and with advanced written approval. 7. RIGHT OF INSPECTION:Tenant will allow the City, or the City's agent,free access at all reasonable times to the premises for the purpose of inspection, or of making repairs, additions or alterations to the premises, or any property owned by or under the control of the City. The City will give Tenant notice at least twenty-four(24) hours before accessing the property. 8. INSURANCE AND HOLD HARMLESS: Tenant shall defend, indemnify, and hold harmless the City, its officers, officials, employees and volunteers from and against any and all claims, suits, actions, or liabilities for injury or death of any person, or for loss or damage to property, which arises out of Tenant's use of premises, or from the conduct of Tenant's business, or from any activity, work or thing done, permitted, or suffered by Tenant in or about the premises, except only such injury or damage as shall have been occasioned by the sole negligence of the City. Tenant shall maintain Commercial General Liability insurance in the amount of not less than one million dollars ($1,000,000) each occurrence, with two million dollars ($2,000,000) general aggregate, and property insurance covering the full value of Tenant's property and improvements with no coinsurance provisions. 8 Tenant shall name the City as a Primary and Non-Contributory Additional Insured on the policy(ies) and shall provide to the City the endorsement page(s) from the policy(ies), evidencing Primary & Non Contributory coverage. DATED: > 12010. CITY OF RENTON: By: Mayor Denis Law ATTEST: By: k`�,rL l.UG2 Bonnie I. 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