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HomeMy WebLinkAboutCAP 2011-04-25 Item 2B - Lease Agreement - Hartnett Property on 14688 Macadam Road South with Way Back Inn City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Community and Parks FROM: Evie Boykan, Human Services Manager DATE: April 20, 2011 SUBJECT: Lease Extension for Way Back Inn ISSUE As a condition of a granting agent, to whom Way Back Inn is applying for funds, Way Back Inn is seeking to extend their current 5 year lease of the Hartnett Property on 14688 Macadam Road South to 10 years from the current time. BACKGROUND Since the early 1990's, The City has been leasing City owned houses to the Way Back Inn for homeless families. The Houses have been rehabilitated and maintained with additional operational funding provided by the Human Services general fund. DISCUSSION Way Back Inn is applying to Boeing Employees Credit Union for a $15,000 grant to replace part or all of the roof, fix gutters, repair water damaged fascia boards, and paint the house. The Grantor, BECU is requiring a letter from the City stating that the lease will be extended if the grant is received. The house has been recently inspected by Code Enforcement with the standards used for the rental housing inspection program. There are no plans for redeveloping this property from Parks and Recreation. RECOMMENDATION The Council is being asked to (1) authorize a letter to the Way Back Inn, assuring that the lease will be changed to 10 years contingent on receipt of the grant and (2) approval to execute the proposed lease contingent on receipt of the grant. If the grant is not received, the current lease will remain in effect and expires on October 1, 2013. The Council is being asked to consider this item at the May 9, 2011 Committee of the Whole meeting and subsequent May 16, 2011 Regular Meeting. ATTACHMENTS Proposed Way Back Inn Lease for 10 year period, contingent on receipt of the grant Current Way Back Inn Lease for Hartnett Manor 35 36 RESIDENTIAL LEASE AGREEMENT HARTNETT MANOR This lease is made on 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 14688 Macadam Road South, Tukwila, Washington. 2. TERM: The term of this lease shall be for ten years, commencing on and shall terminate in ten years, on 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, 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. W:2011 Info Memos \WayBackHartnett lease extension.doc 4/19/2011 Page I of 4 37 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. W:\2011 Info Me mos\WayBack Hartnett lease extension.doc 4/19/2011 Page 2 of 4 38 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. Lessor reserves the right to property inspection and testing for the Lessor's future development purposes. Lessor will give Lessee at least 48 hours notice in the event of access needed for property testing. 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 LESSEE: Way Back Inn ATTN: Mayor's Office PO Box 621 6200 Southcenter Boulevard Renton, Washington 98057 -0621 Tukwila, Washington 98188 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. W:\2011 Info Memos \WayBackHartnett lease extension.doc 4/19/2011 Page 3 of 4 39 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. LESSOR: LESSEE: By: By: Its: Its: Date: Date: APPROVED AS TO FORM: Office of the City Attorney W:\2011 Info Memos \WayBackHartnett lease extension.doc 4/19/2011 Page 4 of 4 40 RESIDENTIAL LEASE AGREEMENT 08 101 HARTNETT MANOR 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 14688 Macadam Road 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\A!l Users \Desktop\Kelly \MSDATA\ Contracts Agreements \Residential Lease Agreement, Hartnett Manor doc DS:ksn 9/24/2008 Page 1 of 4 41 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. Hartnett Manor doe DS:ksn 9/24/2008 Page 2 of 4 42 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 LESSEE: Way Back Inn ATTN: Mayor's Office PO Box 621 6200 Southcenter Boulevard Renton, Washington 98057 -0621 Tukwila, Washington 98188 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. CADocuments and Settings\All Users \Desktop\Kelly\MSDATA \Contracts- Agreements \Residential Lease Agreement Hartnett Manocdoc DS:ksn 9124/2008 Page 3 or 4 43 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 Iaws 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. LESSOR: LESSE By:: il ��Ji By: Its: G�Gj Its: Date: Date: o7DQ AP OVED,AS FORM: J t Office of City Attorney CADocuments and Settings\All Users\ Desktop \Kelly \MSDATA \Contracts- Agreements \Residential Lease Agreement, Hartnett Manor.doc DS:ksn 9/24/2008 Page 4 of 4 44