HomeMy WebLinkAboutReg 2004-11-15 Item 7E - Lease Agreement - Revise Offer for Sound Transit Link Light Rail Project (Duwamish Riverbend Hill) COUNCIL AGENDA SYNOPSIS
ITEM No.
O i Initials 4 2
�1 j •4 Meeting Date 1 Prepared by I Mayor's review I Council review
10 ;n 10/11/04 1 BF 1
rgoa :4 y 11/15/04 I BF t ho r
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ITEM INFORMATION 1
CAS NUMBER: 04-140 !ORIGINAL AGENDA DATE: OCTOBER 11, 2004
AGENDA ITEM TITLE Sound Transit Lease Offer
CATEGOR Discussion Motion Resolution Ordinance Bid Award Public
0 Other
Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date �Itg w Mtg Date
SPONSOR Council Mayor
Adm DCD Finance Fire Legal P &R Police PW
SPONSOR'S `'L` gound Transit has submitted a REVISED land lease offer to the City for their Central
SUMMARY Link Light Rail Project. The lease is for the flat area of the Duwamish Riverbend Hill
property for a construction staging area.
REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte
Utilities Cmte 0 Arts Comm. X Parks Comm. Planning Comm.
DATE: 9/15/04
RECOMMENDATIONS:
SPONSOR /ADMIN. Authorize Mayor to enter into lease agreement with Sound Transit.
COMMITTEE Same as Sponsor
COST IMPACT FUND SOURCE'
EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$233,800.00
Fund Source:
Comments: The appropriation is revenue to the city for park development.
MTG. DATE RECORD OF COUNCIL ACTION
MTG. DATE ATTACHMENTS
11/15/04 Memo from Bruce Fletcher dated 11/09/04
11/15/04 REVISED Sound Transit Lease Offer dated 11/02/04
Parks and Recreation Department
Bruce Fletcher, Directo~
MEMORANDUM
TO:
Mayor Mullet
Tukwila City Council .. . ,/1 0-
Bruce Fletcher, Director of Parks and Recreation Lrt/\f
Rhonda Berry, City Administrator
November.9,2004
Sound Transit Land. Lease
FROM:
CC:
DATE:
SUBJECT:
Sound Transit (ST) has resubmitted their land lease offer to the City of Tukwila for the
Central Link light. rail project In review, the lease would be a construction staging area at the
Duwamish . Riverbend Hill property (141,060 square feet of land). The lease offer totals
$233,800.00 for 24-months with an option to extend the lease at the rate of $9,741.66 per
month.
A review appraiser (Anthony Gibbons, MAl, CRE) conducted an investigation of the lease
value and land conditions. Our appraiser concluded that the Sound Transit lease offer was
reasonable for fair market rent The appraiser did mention that if leasehold tax applies, then
all taxes and fees should be the tenant's (ST) responsibility.
SoundTransit was asked to make the following revisions to the lease agreement:
. Reimburse the City cost of hiring an independent Real Estate Appraiser
. Require a final termination date on the lease contract not to exceed 36 months.
. Require Sound Transit to leave a dean site, which includes passing an environmental
assessment at ST expense
. Allow the City to approve all construction materials delivered to and stored at the
staging area
. Follow all applicable City rules and regulations on the property
Sound Transit has agreed to the above revisions.
It is the recommendation of the Parks and Recreation Department to authorize the Mayor to
enter into the Sound Transit lease offer of $233,800.00 for 24-months and an option to
extend the lease at a rate of $9,741.66 per month (not to exceed 36 months).
-..-sOUND TRANSIT
Link Segment: 750
R/W and Parcel Nos.
TUK026.1 1023049057
Landlord: City ofTukwila
Sht'ch cdih ;\'o\,(,lllhcl" 2. 2004
LEASE AGREEMENT
I. Parties. This Lease, dated for reference purposes as of June , 2004, is be-
tween the City of Tukwila ("Landlord"), and Central Puget Sound Regional Transit Authority, a
regional transit authority organized under Washington law ("Tenant").
2. Lease. Landlord hereby leases to Tenant, and Tenant hereby leases from Land-
lord, the Premises hereinafterdescribed,subject to the tel111s, conditions, covenants, and condi-
tions hereinafter set forth.
3. Premises. As used in this Lease, a reference to "Premises" is to the land legally
described on Exhibit "A" attached hereto and incorporated by this reference, together with any
improvements located on the Premises.
4. Term.
4.1 Initial Tel111. The tel111 of this Lease is two years. The lease shall com-
mence upon initiation of Tenant's construction activities, but no sooner than March I, 2005 and
shall remain in force for 24 months (the "Tel111"). Tenant shall provide fourteen (14) days written
notice to the Landlord prior to commencement of the lease tel111.
4.2 ODtion to Extend. The Tenant shall have the option to extend the...lel111 of
this Lease for aTI additional period of up to, 12 months on the same tel111s and conditions as this
Lease, except forthepaymentofrent. .After theexercise of the option to extend, all references in
this Lease to thetel111 shall be considered to mean the tel111 as extended, and all references to
tel111ination or to the end of the tel111 shall be considered to mean the tel111ination or end of the
tel111 as extended.L!l~' .J~'!.!lu.!!!~U~r.nDt!(\!~ ~ (.1...L~t~. Il~\"h ~lll 'J'~l. t':-.I.en~LLI1t'T erm of the L~H~~
h~:S()!l~L.H.~.lll~!ll!.bl!Jr~\.llLi\E!I:t'1} .L)J)5)~Jlllrl"~i'a.d(liJ i()llaL~'.,t~. Il" I '.'Ilt " J ..,-,.':e.!ll.l.1J II ;!I.b.. ;Igr~:~'( Lt(JJ2.Y
IJld~~m.~~',,:!,..The Tenant's rightto exercise the option to extend is subject to the following condi-
tions precedent:
4.2.1 The Lease shall be in effect at the time notice of exercise is given and on
the :ast day of the prior tel111.
4.2.2 The Tenant shall not be in default under any material provision of this
Lease at the time notice of exercise is given or at the time the renewal tel111 is to commence; pro-
vided that a party shall not be deemed to be in default unless the other party has notified that
party in writing ofthe claimed breach and the period provided by this Lease for curing such de-
fault has expired.
4.2.3 compliance with the following procedure for exercising options:
j Deleted: original I
r D~I~~~~;~clditional year
)
-1
r Deleted: Initial
( Deleted: p
4.2.3.1 At leastthirty (30) days before the last day of the initial term,
the Tenant shall give the Landlord notice in writing irrevocably exercising the option. Such no-
tice shall. include the period of time Jor which the Tenant is exercising the option (e.g.. one
month, six weeks, the full one year).
5, Use. Beginning on the Lease Commencement Date, Tenant may use the Premises
for the purpose of storage and staging of personnel, materials and equipment related to construc-
tion of its rapid transit facilities to be located in the vicinity of the Premises, and for activities
related thereto, but for no. other purpose without the prior written consent of Landlord, which
Landlord may grantor deny, in Landlord's unfettered discretion. Tenant's use and occupancy of
the Premises shall at all times be in full compliance with applicable laws and regulations:..Jllc:lI.,!I.
Il)gj!QDlicable ('IIJ..!ygt.!hL(!I.\!.!~..and any cost of compliance shall be borne by Tenant. <....LDeleted~.sru~an~_n ~____ )
.... . f Deleted: pertaining to the property. l
6. Rent.
6.1 Initial Term. Prior to the lease commencement date, Tenant shall pay
Landlord a sum of Two Hundred Thirty Three Thousand Eight Hundred Dollars
($233,800.00) as full rent for the initial term.. No additional base monthly or periodic rent shall
be payable during the initialterm hereof'. ..
6.2 Extension Term. The rent for an extension term as to which the Tenant
has validly exercised an extension option shall be the sum of Nine Thousand Seven Hundred
Forty One &66/100 Dollars ($9,741.66) per month, prorated for the period of the extension
exercised, payable on the first day of the extensionterm and on the first day of the calendar
month thereafter..ln the event Tenant exercises its extension option for a period that includes a
partial calendar month, rent shall be pro-rated for that partial month.
7. Removal oflmprovementsand Personal Property. Landlord shall remove all
personal property located on the Premises before the Lease Commencement Date. In the event
Landlord has not removed such personal property when Tenant takes possession of the Premises,
Tenant shall have the right to remove and dispose of such personal property at Landlord's ex-
pense. Landlord shall pay the cost of such removal to Tenant within thirty (30) days of receiving
an invoice for such costs.
8. Taxes and Assessments. Landlord shall pay all real and personal property taxes,
general arid special assessments, and other charges of every description levied on or assessed
against the Premises, improvements located on the Premises, personal property located on or in
the land or improvements, or the leasehold estate, to the full extent of installments falling due
during the term of this Lease, except for personal property taxes chargeable against Tenant,
which shall be the responsibility of the Tenant.
9. Hazardous Substances. Tenant shall not bring to or keep on the Premises, or
suffer or permit others to do so, any substance which is regulated as being dangerous, toxic, haz-
ardous, or harmful to persons or to the environment by any federal, state or local law or regula-
tion, except in strictest compliance with all laws and regulations governing the storage, handling
and transportation thereof, and Tenant shall in no event release or permit others to release on the
Page 2
Premises any such substances. Tenant , shall be liable to Landlord, and shall defend, indemnify
and hold Landlord and Landlord's successors in interest harmless from any loss, damage, cost or
expense incurred on account of Tenant's breach of these duties to include, without limitation, li-
ability for inspection costs, cleanup costs, engineers' and consultants' fees, civil or criminal fines,
damages or penalties, and attorneys. fees incurred in connection therewith or in enforcing this
indemnity.
10. Default; Remedies.
10.1 Tenant's Default. Each of the following events shan be a default by Ten-
ant and a breach of this Lease:
10.1.1 Abandonment or surrender of the Premises or of the leasehold es-
tate, orfailure orrefusal to pay when due any installment of rent or any other sum required by
this Lease to be paid by Tenant, or to perform as required or conditioned by any other covenant
or condition of this Lease. Failure to occupy the Premises shan not be deemed abandonment or
surrender.
10. 1.2 Fai1ure by Tenant to perform. any obligation hereunder to Landlord
as and when due.
10.2 Notice and Rightto Cure. As a precondition to pursuing any remedy for
an alleged default by Tenant, (the word "default" to include breach), Landlord shan, before pur-
suing any remedy, give written notice of default to Tenant stating that the notice was for the pur-
pose of notice. under this provision.' . Each notice of default shall specify in detail the alleged
event of default and the intended remedy. Tenant shall have ten (10) days ITom receipt of such
notice to cure the alleged default before Landlord pursues any remedy therefor; provided, that if
the default specified is of a nature that cannot reasonably be cured within ten days, then Tenant
shan not be in default if Tenant commences a cure within such ten-day period and diligently
prosecutes the cure to completion.
10.3 Landlord's Remedies. If any default by Tenant shan continue uncured fol-
lowing written notice of default as required by this Lease and the expiration of the period al-
lowed for cure, Landlord m;ay, in addition to any remedies available to Landlord at law, termi-
nate Tenant's rights under this Lease by giving Tenant notice of termination. Promptly after no-
tice of termination, Tenant shan surrender and vacate the Premises in the condition required at
the expiration of the Lease term, and Landlord may reenter and take possession of the Premises
and eject all or any parties in possession. Termination under this paragraph shan not relieve
Tenant from the payment of any sum then due to Landlord or from any claim for damages previ-
ously accrued or then accruing against Tenant.
11. Insurance. Tenant shall pay for, keep in force and maintain at an times during
the Lease term, public liability insurance and property damage insurance with combined limits of
$2,000,000.00 (Two Million Dollars), naming Landlord as additional insured, and Tenant wi\1
furnish Landlordwith a certificate of such insurance.
Page 3
Tenant, its successors or. assigns, will protect, indemnify and hold hannless Landlord, their au-
thorized agents and employees from all claims, actions, costs, damages or expenses of any nature
whatsoever by reason of the acts or omissions of Tenant, its assigns, agents, contractors, licen-
sees, invitees, employees, or any person whomsoever, arising out of or in connection with any
acts or activities authorized by this Lease.
Tenant further agrees to defend Landlord, their agents or employees in any claim or litigation,
including payment of any costs or attorneys' fees for any claims or action commenced, arising
out of, or in connection with, acts or activities authorized by this Lease, whether those claims,
actions, costs, damages or expenses result from acts or activities occurring on or off the Prem-
ises.
12. Miscellaneous Provisions.
12.1 Waiver. No waiver of any default shall constitute a waiver of any other
breach or default, whether of the same or any other covenant or condition.
12.2 Attornevs' Fees. I[either party brings any action or proceeding to enforce,
protect or establish any right or remedy under this Lease, the prevailing party shall be entitled to
recover from the other party its reasonable attorneys' fees and related costs incurred therein, or in
preparing therefor, or in any appeal therefrom.
12.3 Notices.
12.3.1 As used in this Lease, notice includes but is not limited to the
communication of notice, request, demand, approval, statement, report, acceptance, consent,
waiver, and appointment. No notice of the exercise of any option or election is required unless
the provision giving the election or option expressly requires notice. Rent shall be sent in the
manner provided for giving notice.
12.3.2 All notices must be in writing.
12.3.3 Notice is considered given either (a) when delivered in person to
the recipient named or (b) three days after being deposited in the United States mail in a sealed
envelope, certified mail, return receipt requested, postage prepaid, addressed by name and ad-
dress to the party or person intended as follows:
To Landlord: Attn: Bruce Fletcher, Director
Tukwila Parks.and Recreation Department
12424 42ndAvenue S.
Tukwila, W A 98168
Page 4
To Tenant:
Sound Transit with acopy to:
401 S. Jackson Street
Seattle, WA 98104
Attn: Real Estate Department
Jennifer Belk
Legal Counsel
Sound Transit
40 I S. Jackson Street
Seattle, W A 98104
12.3.4 Either party may, by notice given at any time or from time to
time, require subsequent notices to be given in the manner set forth above to another individual
person, whether a party or an officer ,or n:presentative, or to a different address, or both.
,
12.4 ~at)tions.The captions of the various articles and paragraphs cifthis Lease are for
convenience and ease of reference only and do not define, limit, augment, or describe the scope,
content, or intent of this Lease or of any part or parts ofthis Lease.
12.5 Entire Agreement. ThisLease, together with the Residential Lease and the Stipu-
lation contain the entire agreement between the parties. No promise, representation, warranty, or
covenant not included in this Lease, the Residential Lease or the Stipulation has been or is relied
on by either party.
12.6 Severabilitv. The invalidity or illegality of any provision shall not affect the re-
mainder of the Lease.
12.7 Successors. The covenants and conditions of this Lease shall be binding on and
shall inure to the benefit of the heirs, successors, executors, administrators, assigns, and personal
representatives .ofthe respective parties.
12.8. Countemarts. This Lease may be executed in two or more counterparts, each of
which shall be an original, but all of which shal1 constitute one and the same instrument.
Dated as of the day and year first above written.
___________L~,_I!__ J~ f.~~~:U(.!.JJUIAr~'JI,__J:! t v .J.~tJj.;_;:;HtLT a l1~j_~_I)ltJl_ll~'l:rS_~.I!;,tJLh~J)f!'11i tt~'~L ;1.;:s;~:S~J(:
1!1_r_::lJiU:~TI,'_{: _ that is not included within the Premises subiect to this Lease,dlll:nlg Ih,:,__":llllr~
I';IJII_~!.L_U]is Jn~~.PROVIDE[) THAT. (:.i_~~;.,t_;UL alld!i~r \ 1_)I~III,ll:\T'; ,...I_;;IJi_II~)!,_Ac\:~',,-o; !b_I:_~:Ll!lI
Area" thnllll.!.h thrPrcmises.\\lthoutorior. II mIL'1I l"OIl"t'llt 1>ltlll'1 cnam.
Page 5
,-, ---'----------------~~
Deleted: 1 ,I
>
....
! _1)~1E!ted:-!____=_J
~e!eted~ ~ot covered by this 1~__..-J
i~~leted: t- - - J
- - r - _1
,.~Iete<f: .
~~: ~. "~_.., covered by this Lease 1
'I Dei~: the- ----------l
-----.--"-- ---------..
Inserted: the written .:onsent of the i
Tenant )
'[ Deleted: .1
: Inserted: property covered by this
Lease except with
.,..,-'--,'."0':""-...---------,.._ _ ~._-- -.------!
: Inserted: .
__.--I
.-.-----_.-------
Tenant:
Umdlord:
Bruce Fletcher
Central Puget Sound Regional.Transit Authority,
a regional transit authority organized under Washington law
By:
Agnes Govem
Its: Chief Administrative Officer
City of TukwiIa
Cascade Land Conservancy Concurrence
Whereas the Cascade Land Conservancy is the "Grantee" of a "Grant of Penn anent Access and
Stewardship Easement" dated March 10, 2004 and whereas such agreement assigns "Steward-
ship" rights tothe Grantee; Cascade Land Conservancy hereby concurs with this lease.
Michelle Connor
SOUND TRANSIT
APPROVED AS TO FORM
By:
Name:
Title: Sound Transit Legal Counsel
Date:
Page 6
STATE OF WASHINGTON )
) ~
COUNTY OF KING )
On this day of , 2003,
before me, the undersigned notary public in and for the State of Washington, duly commissioned
and sworn, personal1y appeared Agnes Govern, to me known to be the Chief Administrative Of-
ficer of Central Puget Sound Regional Transit Authority, a regional transit authority organized
under Washington law, the authority that executed the foregoing instrument, and acknowledged
said instrument to be the free and voluntary act and deed of said authority, for the uses and pur-
poses therein mentioned, and ()noath stated that he/she was duly authorized to execute the same.
WITNESS my hand and official seal hereto the day and year in this Certificate first
above written.
Signature:
Notary Public in and for the State of Washington
Notary (print name)
Residing at
My appointment expires:
STATE OF WASHINGTON )
) ~
COUNTY OF KING )
I certify that I know or have satisfactory evidence that BruceFletcher signed this instrument, on
oath stated that she was authorized to execute the instrument and acknowledged it to be the free
and voluntary act of such party for the uses and purposes mentioned in the instrument.
Signature:
Notary Public in and for the State of Washington
Notary (print name)
Residing at
My appointment expires:
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