Loading...
HomeMy WebLinkAboutCAP 2013-10-14 Item 2B - Lease Agreement - 5-Year Extension for Way Back Inn (Kennedy's Cottage)TO: City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM Mayor Haggerton Community Affairs & Parks Committee FROM: Evie Boykan, Human Services Manager BY: Stacy Hansen, Human Services Coordinator DATE: September 25, 2013 SUBJECT: Lease Extension for Way Back Inn — Kennedy's Cottage ISSUE The Way Back Inn is seeking to extend their current lease an additional five years on the Kennedy's Cottage property located at 15421 42nd Ave. S., until October 1, 2018. BACKGROUND Since the early 1990's, the City has been leasing City owned homes to the Way Back Inn for homeless families. The homes have been rehabilitated and maintained by the Way Back Inn with additional operating funds provided by the Human Services general fund. DISCUSSION This property has been leased by the Way Back Inn as transitional housing for homeless families with at least one child under the age of 14. The City leases this city-owned home to the Way Back Inn to provide homeless families with 90-day free, transitional housing. This house was inspected by Code Enforcement in 2012 with the standards used for the Rental Housing Inspection Program and has successfully passed inspection. There are no plans for redeveloping this property from Parks and Recreation. FINANCIAL IMPACT There is no financial impact by extending this lease an additional five years. RECOMMENDATION The Council is being asked to approve and execute the proposed lease agreement for an additional five years. Upon approval, this lease would remain in effect from October 1, 2013 until October 1, 2018. The Council is being asked to consider this item at the October 21, 2013 Regular Meeting Consent Agenda. ATTACHMENTS Proposed Way Back Inn lease for five-year period Current Way Back Inn Lease for Kennedy's Cottage 39 40 LEASE AGREEMENT This Lease Agreement (the "Lease ") is entered into on this 1st day of October, 2013, between the City of Tukwila, a Washington municipal corporation, (the "City ") and the Way Back Inn, a Washington non - profit organization (the "Lessee "). The City and Lessee agree as follows: 1. PREMISES: The City shall lease to Lessee the residential property currently situated at 15421 42nd Ave. S., Tukwila, Washington (the "Premises "). 2. TERM AND CONSIDERATION: The term of this Lease shall commence on October 1, 2013, and shall terminate on October 1, 2018, in accordance with the termination provisions set forth in Section 23, unless sooner terminated as a result of Lessee's default hereunder. Upon termination of this Lease, Lessee shall surrender all keys to the City at the place then fixed for notice. In consideration of Lessor's rent -free lease of the Premises to Lessee, Lessee shall maintain the Premises and make improvements to the Premises at Lessee's sole expense. 3. POSSESSION: Lessee shall be deemed to have accepted possession of the Premises in an "as -is" condition. The City makes no representations to Lessee regarding the Premises including the structural condition of the Premises and the condition of all mechanical, electrical, and other systems. Lessee shall be responsible for performing any work necessary to bring the Premises into condition satisfactory to Lessee. Lessee shall not engage in any improvements or alterations to the Premises without the express written consent of the City. 4. USE: Lessee shall use the Premises for the following purposes: 90 -day transitional housing for homeless families with one child under the age of 14. The Premises shall be used only for the uses specified herein and for no other business or purpose without the prior written consent of the City. No act shall be done on or around the Premises that is unlawful or that will increase the existing rate of insurance on the Premises or cause the cancellation of any insurance on the Premises. Lessee shall not commit or allow to be committed any waste upon the Premises or any public or private nuisance. Lessee shall not do or permit anything to be done on the Premises which will obstruct or interfere with the rights of other tenants, or occupants of the Premises or their customers, clients, and visitors or to injure or annoy such persons. 5. LESSEE MAINTENANCE AND REPAIR RESPONSILIBITY: Lessee shall, when and if needed, at Lessee's sole expense, make repairs to the Premises and every part thereof; and Lessee shall maintain the Premises in a neat, clean, sanitary condition. Lessee shall surrender the Premises to the City in good condition upon the termination of this Lease, reasonable wear and tear excepted. 6. UTILITIES: Lessee shall pay prior to delinquency for all heat, light, water, and all other utility services supplied to the Premises. 7. DESTRUCTION OF PREMISES: If the Premises are completely or partially destroyed by fire or other casualty, or if they are damaged by an uninsured casualty, or by an insured casualty to such an extent that the damage cannot be repaired within sixty (60) days of the occurrence, Lessor shall have the option to restore the Premises or to terminate this Agreement LEASE AGREEMENT Page 1 of 6 41 on thirty (30) days written notice, and Lessee shall have the option to terminate this Agreement on thirty (30) days written notice, effective as of any date not more than sixty (60) days after the occurrence. If this Section becomes applicable, Lessor shall advise Lessee within thirty (30) days after such casualty whether Lessor elects to restore the Premises or to terminate this Agreement. If Lessor elects to restore the Premises, it shall commence and prosecute the restoration work with diligence. 12. ALTERATIONS AND ADDITIONS BY LESSEE: After obtaining the prior written consent of the City, Lessee may make, at its sole expense, such additional improvements or alterations to the Premises, which it may deem necessary or desirable. Any repairs or new construction by Lessee shall be done in conformity with plans and specifications approved by the City. All work performed shall be done in a workmanlike manner and shall become the property of the City. 13. LIENS: Lessee shall keep the Premises free from any liens arising out of any work performed, materials furnished, or obligations incurred by Lessee, including those utilities which Lessee is responsible for. 14. INSURANCE: The Lessee shall procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the Lessee's operation and use of the leased Premises. Lessee's maintenance of insurance as required by the agreement shall not be construed to limit the liability of the Lessee to the coverage provided by such insurance, or otherwise limit the City's recourse to any remedy available at law or in equity. A. Minimum Scope of Insurance. Lessee shall obtain insurance of the types described below: 1. Commercial General Liability insurance shall be written on Insurance Services Office (ISO) occurrence form CG 00 01 and shall cover premises and contractual liability. The City shall be named as an insured on Lessee's Commercial General Liability insurance policy using ISO Additional Insured - Managers or Lessors of Premises Form CG 20 11 or a substitute endorsement providing equivalent coverage. 2. Property insurance shall be written on an all risk basis. B. Minimum Amounts of Insurance. Lessee shall maintain the following insurance limits: 1. Commercial General Liability insurance shall be written with limits no less than $1,000,000 each occurrence, $2,000,000 general aggregate. 2. Property insurance shall be written covering the full value of Lessee's property and improvements with no coinsurance provisions. C. Other Insurance Provisions. LEASE AGREEMENT Page 2 of 6 42 The Lessee's Commercial General Liability insurance policy or policies are to contain, or be endorsed to contain that they shall be primary insurance as respect to the City. Any insurance, self - insurance, or insurance pool coverage maintained by the City shall be in excess of the Lessee's insurance and shall not contribute with it. D. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best rating of not less than A: VII. E. Verification of Coverage. Lessee shall furnish the City with original certificates and a copy of the amendatory endorsements, including but not necessarily limited to the additional insured endorsement, evidencing the insurance requirements of the Lessee. F. Waiver of Subrogation. Lessee and the City hereby release and discharge each other from all claims, losses and liabilities arising from or caused by any hazard covered by property insurance on or in connection with the premises or said building. This release shall apply only to the extent that such claim, loss or liability is covered by insurance. G. City's Property Insurance. The City shall purchase and maintain during the term of the lease all -risk property insurance covering the Building for their full replacement value without any coinsurance provisions. H. Notice of Cancellation. The Lessee shall provide the City with written notice of any policy cancellation, within two business days of their receipt of such notice. I. Failure to Maintain Insurance. Failure on the part of the Lessee to maintain the insurance as required shall constitute a material breach of Lease, upon which the City may, after giving five (5) business days notice to the Lessee to correct the breach, terminate the Lease or, at its discretion, procure or renew such insurance and pay any and all premiums in connection therewith, with any sums so expended to be repaid to the City on demand. 15. INDEMNIFICATION: Lessee 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 Lessee's use of Premises, or from the conduct of Lessee's business, or from any activity, work or thing done, permitted, or suffered by Lessee in or about the Premises, except only such injury or damage as shall have been occasioned by the sole negligence of the City. LEASE AGREEMENT Page 3 of 6 43 16. ASSIGNMENT: Lessee shall not assign this lease or any part thereof, either by operation of law or otherwise, without first obtaining the prior written consent of the City. 17. DEFAULT: Failure by Lessee to observe or perform any of the covenants, conditions, or provisions of this Lease, where such failure shall continue for a period of ten (10) days after written notice from the City to cure the default, shall constitute a default and breach of the Lease by the City. Lessee shall notify the City promptly of any default not by its nature necessarily known to the City. 18. ACCESS: After reasonable notice from the City (except in cases of emergency where no notice is required), Lessee shall permit the City and its agents, employees, and contractors to enter the Premises at all reasonable times to make repairs, alterations, improvements, or inspections. This Section shall not impose any repair or other obligation upon the City not expressly state elsewhere in this Lease. 19. COMPLIANCE WITH LAWS, RULES AND REGULATIONS: Lessee shall, at its sole cost and expense, promptly comply with all laws, statutes, ordinances, and governmental rules, regulations or requirements now in force or which may hereafter be in force relating to or affecting the conditions, use, or occupancy of the leased premises. Lessee shall faithfully observe and comply with the rules and regulations that the City shall from time to time promulgate, including, without limitation, those regulations affecting signage on the Property. 20. PERMITS: Lessee shall, at its sole cost and expense, be responsible for obtaining any permits or licenses that are necessary to perform the work and covenants of this Lease. 21. PROPERTY TAXES: The City shall be responsible paying all property taxes on the premises. 22. NOTICE: All notices under this lease shall be in writing and shall be effective when mailed by certified mail or delivered to the City at the address below stated, or to Lessee at the address below stated or to such other address as either party may designate from time to time: CITY OF TUKWILA: LESSEE: CITY OF TUKWILA Way Back Inn ATTN: Mayor's Office PO Box 621 6200 Southcenter Boulevard Renton, WA 98055 Tukwila, Washington 98188 23. TERMINATION: Either party has the right to terminate this Agreement if the other party is in default of any material obligation or representation of this Lease which default is incapable of cure, or which being capable of cure, is not cured within ten (10) days after receipt of written notice of such default. 24. APPLICABLE LAW; VENUE; ATTORNEY'S FEES: This Agreement shall be governed by and construed in accordance with the laws of the State of Washington. In the event any suit, arbitration, or other proceeding is instituted to enforce any term of this Agreement, the parties specifically understand and agree that venue shall be properly laid in LEASE AGREEMENT Page 4 of 6 44 King County, Washington. The prevailing party in any such action shall be entitled to its attorney's fees and costs of suit. 25. AUTHORITY OF LESSEE: Lessee, and each individual executing this Lease on behalf of Lessee, represent and warrant that s/he is duly authorized to execute and deliver this Lease, and that this Lease is binding upon Lessee in accordance with its terms. 26. WAIVER AND FORBEARANCE: No waiver by the City of any breach or default by Lessee of any of its obligations or agreement or covenants herein, shall be deemed to be a waiver of any subsequent breach or default of the same or any other covenant, agreement or obligation, nor shall forbearance by the City to seek remedy for any breach or default of Lessee be deemed a waiver by the City or its rights and remedies with respect to such breach or default. 27. ENTIRE AGREEMENT; MODIFICATION: This Lease, together with any attachments or addenda, represents the entire and integrated Lease Agreement between the City and the Lessee and supersedes all prior negotiations, representations, or agreements written or oral. No amendment or modification of this Lease shall be of any force or effect unless it is in writing and signed by the parties. 28. SEVERABILITY AND SURVIVAL: If any term, condition or provision of this Lease is declared void or unenforceable or limited in its application or effect, such event shall not affect any other provisions hereof and all other provisions shall remain fully enforceable. The provisions of this Lease, which by their sense and context are reasonably intended to survive the completion, expiration or cancellation of this Lease, shall survive termination of this Lease. IN WITNESS THEREOF, the parties hereto have executed this Lease the date and year above written. CITY OF TUKWILA: LESSEE: By: By: Its: Its: Date: Date: APPROVED AS TO FORM: Office of the City Attorney STATE OF WASHINGTON ) ) ss. COUNTY OF KING ) I certify that I know or have satisfactory evidence that Mayor, is the person who appeared before me, and said person acknowledged that they signed LEASE AGREEMENT Page 5 of 6 45 this instrument, and on oath stated that they were authorized to execute the instrument on behalf of the City of Tukwila and acknowledged it to be his/her free and voluntary act for the purposes mentioned in the instrument. DATED: (Signature of Notary) (Legibly Print or Stamp Name of Notary) Notary Public in and for the State of Washington My appointment expires: [Stamp or Seal] STATE OF ) ) ss. COUNTY OF ) I certify that I know or have satisfactory evidence that is the person who appeared before me, and said person acknowledged that said person signed this instrument, and on oath stated that said person was authorized to execute the instrument and acknowledged it to be his/her free and voluntary act for the purposes mentioned in the instrument. DATED: (Signature of Notary) (Legibly Print or Stamp Name of Notary) Notary Public in and for the State of My appointment expires: [Stamp or Seal] LEASE AGREEMENT Page 6 of 6 46 08 -100 RESIDENTIAL LEASE AGREEMENT KENNEDY'S COTTAGE This lease is made on October 1, 2008, between the City of Tukwila, a city, as "Lessor," and The Way Back Inn, a Washington non - profit, as "Lessee," as follows: 1. PREMISES: Lessor leases to Lessee the Residence currently situated at 15421 42nd Avenue South, Tukwila, Washington. 2. TERM: The term of this lease shall be for five years, commencing on October 1, 2008, and shall terminate in five years, on October 1, 2013, in accordance with the termination provisions set forth in paragraph 19, unless sooner terminated as a result of Lessee's default hereunder. 3. POSSESSION: Lessee shall be deemed to have accepted possession of the leased premises in an "as -is" condition. Lessor has made no representations to Lessee respecting the condition of the lease premises. 4. RENT: During the term hereof, Lessee may occupy the leased premises rent free; provided, however, Lessee shall make all improvements at its sole expense; provided, such improvements shall be subject to final inspection and the approval of the Lessor, prior to the occupancy of the leased premises, and pay all costs associated with or arising out of the maintenance and operation of the leased premises as set forth herein. 5. USE: Lessee shall use the leased premises to provide free, temporary single- family dwellings for homeless families with children under fourteen years of age, and all current uses incidental thereto, and for no other purpose without first obtaining Lessor's prior written consent. 6. LESSEE MAINTENANCE AND REPAIR RESPONSILIBITY: Lessee shall, when and if needed, at Lessee's sole expense, make repairs to the leased premises and every part thereof; and Lessee shall maintain the leased premises in neat, clean, sanitary condition. Lessee shall surrender the leased premises to Lessor in good condition upon the termination of this lease, reasonable wear and tear expected. 7. UTILITIES: Lessee shall pay prior to delinquency for all heat, light, water and other utility services supplied to the leased premises. 8. ALTERATIONS AND ADDITIONS BY LESSEE: After obtaining the prior consent of Lessor, Lessee may make, at its sole expense, such additional improvements or alterations to the leased premises, which it may deem necessary or desirable. Any repairs or new construction by Lessee shall be done in conformity with plans and specifications approved by Lessor. All work performed shall be done in a workmanlike manner and shall become the property of the Lessor. C\Documents and Settings\A1l Users\Desktop\Kelly \MSDATA \Contracts - Agreements \Residential Lease Agreement, Kennedy's Cottage.doc DS:ksn 9/242008 Page 1 of 4 (akaSC -') 47 9. LIENS: Lessee shall keep the leased premises free from any liens arising out of any work performed, materials furnished, or obligations incurred by Lessee. 10. INSURANCE: Prior to commencing any improvements and prior to occupancy under this lease, at no expense to the Lessor, the Lessee shall obtain and furnish to the Lessor, a certificate of insurance showing general liability insurance coverage including blanket contractual coverage, which certificate: A. shall be subject to approval of the Lessor; B. must fully protect the Lessor from any and all claims and risks in connections with any activity performed by the Way Back Inn and tenants by virtue of this lease; and C. must specifically name the Lessor as an additional insured as respects this and a copy of the endorsement naming the Lessor as an additional insured shall be attached to the certificate of insurance. Such policy must provide the following minimum coverage: 1) Liability insurance written on an occurrence basis with limits no Less than $1,000,000.00 combined single limit per occurrence and $2,000,000.00 aggregate for personal injury, bodily injury and property damage. Coverage shall include, but not be limited to, blanket contractual; products/ completed operations; broad form property damage; and fire legal to $100,000.00. 2) Lessee shall be responsible for obtaining their own property insurance for Lessee's personal property. Any payment of deductible or self- insured retention shall be the sole responsibility of the Lessee. The Lessee's insurance shall be primary insurance as respects the Lessor and the Lessor shall be given 30 days prior written notice of any cancellation, suspension or material change in coverage. 11. INDEMNIFICATION: The Way Back Inn hereby releases, discharges, defends, indemnifies and holds harmless the Lessor, and its agents, contractors, and others from any and all claims, costs (including attorney fees), and liability, arising in any manner, including, but not limited to, those arising from injury or death to persons or damage to property occasioned by any act, omission or failure of the Way Back Inn, its officers, agents or employees, whether they be direct or indirect. 12. ASSIGNMENT AND SUBLETTING: Lessee shall not assign this lease or any part thereof, either by operation of law or otherwise, without first obtaining the prior written consent of Lessor. C: \Documents and Settings\All Users \Desktop\Kelly \MSDATA\ Contracts- Agreements\Residential Lease Agreement, Kennedy's Cottage.doc DS:ksn 9/24/2008 Page 2 of 4 48 13. DEFAULT: Failure by Lessee to observe or perform any of the covenants, conditions, or provisions of this lease, where such failure shall continue for a period of ten days after written notice from Lessor to cure the default, shall constitute a default and breach of the lease by the Lessor. Lessee shall notify Lessor promptly of any default not by its nature necessarily known to Lessor. 14. ACCESS: Lessee shall permit Lessor to enter the leased premises at reasonable times for the purpose of inspecting the leased premises and ascertaining compliance with the provisions hereof by Lessee, but nothing herein shall be construed as imposing any obligation on Lessor to perform any such work or duties. 15. COMPLIANCE WITH LAWS, RULES AND REGULATIONS: Lessee shall, at its sole cost and expense, promptly comply with all laws, statutes, ordinances, and governmental rules, regulations or requirements now in force or which may hereafter be in force relating to or affecting the conditions, use, or occupancy of the leased premises. Lessee shall faithfully observe and comply with the rules and regulations that Lessor shall from time to time promulgate, including, without limitation, those regulations affecting signage on the Property. 16. PERMITS: Lessee shall, at its sole cost and expense, be responsible for obtaining any permits or licenses that are necessary to perform the work and covenants of this lease Agreement. 17. PROPERTY TAXES: Lessor shall be responsible for keeping all property taxes paid and up to date. 18. NOTICE: All notices under this lease shall be in writing and shall be effective when mailed by certified mail or delivered to Lessor at the address below stated, or to Lessee at the address below stated or to such other address as either party may designate from time to time: LESSOR: CITY OF TUKWILA ATTN: Mayor's Office 6200 Southcenter Boulevard Tukwila WA 98188 LESSEE: Way Back Inn PO Box 621 Renton WA 98057 -0621 19. TERMINATION: Either party has the right to terminate this Agreement if the other party is in default of any material obligation or representation of this lease which default is incapable of cure, or which being capable of cure, is not cured within ten days after receipt of written notice of such default. C \Documents and Settings\AII Users \Desktop\KeIIy\MSDATA\ Contracts - Agreements \Residential Lease Agreement, Kennedy's Cottage.doc DS:ksn 9/24/2008 Page 3 of 4 49 20. GENERAL PROVISIONS: A. TIME IS OF THE ESSENCE OF THIS LEASE. B. In the event of any action or proceeding brought by either party against the other under this lease, the Prevailing party shall be entitled to recover for the fees of its attorneys in such action or proceeding, including costs of appeal, if any; in such amount as the court may adjudge reasonable Attorneys' fees. For the purposes of this provision, the terms "action" or "proceeding" shall include arbitration, administrative, bankruptcy, and judicial proceedings, including appeals therefrom. C. This lease shall be construed and governed by the laws of the State of Washington. D. Upon termination of this lease, Lessee shall surrender all keys to the Lessor at the place then fixed for notice. 21. .AUTHORITY OF LESSEE: Lessee, and each individual executing this lease on behalf of Lessee, represent and warrant that s /he is duly authorized to execute and deliver this lease, and that this lease is binding upon Lessee in accordance with its terms. 22. WAIVER AND FORBEARANCE: No waiver by Lessor of any breach or default by lessee of any of its obligations or agreement or covenants herein, shall be deemed to be a waiver of any subsequent breach or default of the same or any other covenant, agreement or obligation, nor shall forbearance by Lessor to seek remedy for any breach or default of Lessee be deemed a waiver by Lessor or its rights and remedies with respect to such breach or default. THIS LEASE IS SUBJECT TO ACCEPTANCE BY LESSOR. IN WITNESS THEREOF, the parties hereto have executed this Lease the date and year above written. LESSO ;a i LESS Its: Date: 9eAQket, t if 1 gab APPROVE TO FOR Office o e City Attorney Date: C- \Documents and Settings\All Users \Desktop \Kelly \MSDATA \Contracts- Agreements \Residential Lease Agreement, Kennedy's Cottage.doc DS:ksn 9/24/2008 Page 4 of 4 50