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Home My WebLink AboutFS 2015-05-19 Item 2A - Lease Agreement - 1-Year Extension for Neighborhood Resource CenterCity of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Finance and Safety Committee FROM: Mike Villa, Chief of Police BY: Jon Harrison, Police Commander DATE: 05/12/15 SUBJECT: Neighborhood Resource Center Lease Extension Amendment No. 1 to Agreement No. 12 -063 ISSUE The Police Neighborhood Resource Center (NRC) lease agreement (No. 12 -063) with Mike West expires on June 30, 2015. BACKGROUND Beginning 07/01/12, the City entered into a lease agreement for the property located at 14862 Tukwila International Boulevard (Contract 12 -063). That lease expires June 30, 2015 and currently provides for a $1700 /month rent. DISCUSSION The Lessor, Mike West, is willing to extend the current lease to June 30, 2016, with an amended rent of $1750 per month. This represents an increase of $50 per month ($600 over the life of the lease extension) from the current agreement. This location meets the operational needs and requirements of the police department and is currently a budgeted item; no new monies are being requested, the existing PD budget will be used to fund this request. It is anticipated that the construction of Tukwila Village will be well under way at the time of the expiration of this extension and we will have a good idea of the additional time we will have a need to lease this property. The current construction schedule indicates a likely completion of the Tukwila Village building that will house a new NRC is December 2017. FINANCIAL IMPACT This is a budgeted item currently and no new monies are being requested to fulfill this request. The cost of the 12 month extension is $21,000. RECOMMENDATION The Committee is being asked to consider the 1 -year lease extension and forward it to the May 26, 2015 Committee of the Whole and subsequent June 1, 2015 Regular Meeting. ATTACHMENTS Contract 12 -063 Lease Agreement Amendment City of Tukwila Agreement Number: • 6200 Southcenter Boulevard, Tukwila WA 98188 LEASE AGREEMENT Amendment #1 Between the City of Tukwila and Mike West That portion of Contract No. 12 -063 between the City of Tukwila and Mike West is amended as follows: Section 3 (Rent): Lessee shall pay Lessor rent in the amount of $1,465 per month for the period from 711112 through 12131112, $1,650 per month for the period from 111113 through 12131113, $1,700 per month for the period from 111114 through 6130115, and $1,750 per month for the period from 7!1/15- 6/30/16. Rent shall be due to Lessor on the first day of the month. Section 5 (Term): This Lease Agreement shall be in effect until June 30, 2016, unless sooner terminated as a result of either party's default hereunder or in accord with the termination provisions set forth in paragraph 18. At the conclusion of the stated term, the lease will remain in effect on a month -to -month basis. All other provisions of the contract shall remain in full force and effect. Dated this day of , 20 CITY OF TUKWILA CONTRACTOR Jim Haggerton, Mayor ATTEST /AUTHENTICATED City Clerk CA: 2012 Printed Name/Title: APPROVED AS TO FORM City Attorney Page 1 of 1 3 El 12 -063 Council Approval 5/21/12 LEASE AGREEMENT THIS LEASE AGREEMENT, dated this day ofTUIV 2012, is entered into by and between Mike West, the property owner, hereinafter referred to as "Lessor," the City of Tukwila, a political subdivision of the State of Washington and hereinafter referred to as "Lessee," for the purpose of leasing the former Southtowne Auto Rebuild office building located at 14862 Tukwila International Boulevard, Tukwila, Washington 98168. WITNESSETH: 1. Description of Premises. Lessor hereby leases to Lessee, upon the terms and conditions herein set forth, the building located at 14862 Tukwila International Boulevard, Tukwila, Washington (hereinafter "Premises "). The Premises include the entire building except the basement and rear entryway /foyer. 2. Additional Rights of Access. Lessor hereby grants Lessee non - exclusive rights for ingress and egress to and from the Premises through the rear entryway /foyer. Lesssor hereby grants Lessee exclusive rights to park between the Premises and Tukwila International Boulevard and non- exclusive rights to park up to six vehicles in the lot behind the building. 3. Rent. Lessee shall pay Lessor rent in the amount of $1,465 per month for the period from 7/1/12 through 12/31/12, $1,650 per month for the period from I /l /13 through 12/31/13, and $1,700 per month thereafter. Rent shall be due to Lessor on the first day of the month. 4. Deposit. Lessee shall pay Lessor a $2,500.00 refundable security deposit prior to taking possession of the Premises. 5. Term. The term of this Lease Agreement is three (3) years commencing on July 1, 2012 and terminating on June 30, 2015 unless sooner terminated as a result of either party's default hereunder or in accord with the termination provisions set forth in paragraph 18. At the conclusion of the stated term, the lease will remain in effect on a month -to -month basis. 6. Ownership. The real property, improvements, and all permanent fixtures shall become and remain the property of Lessor. Any personal property on the premises shall remain the property of the party that supplied it. 7. Permitted Uses. Lessee intends to use the Premises for a police department neighborhood resource center but may use the Premises for any other lawful purpose. 8. Acceptance of Premises. Lessee has examined the premises and accepts them in their present condition. 9. Maintenance and Repair. Lessee may maintain, clean, and repair any part of the interior C: 1Usecs\ 8961AppDataU .ocal\Microsofl\WindowslTemporary Tntemet Fil eslContent .OutlooklLOVUDYTV\Police NRC Lease v5Gom Fspacket.doc/P)V05I23I12 -1- "IaOTOIAW 5 of the Premises. Said maintenance, cleaning and repairs shall be at Lessee's sole discretion and expense. Lessor shall maintain, clean, and repair the exterior of the Premises and related property. 10. Utilities. Lessee shall be responsible for paying for all utilities. 11. Property Taxes. Lessee shall reimburse Lessor for 50% of the property taxes paid by Lessor for the parcel on which the Premises are located (assessor parcel number 004100- 0329). Lessee's portion of said taxes shall be prorated to reflect the term of this lease as it relates to the calendar year of the respective property taxes. Lessee shall issue payment due under this section to Lessor within 30 days of receiving proof of payment from Lessor. 12. Tenant Improvements. Lessee may make improvements and other alterations to the interior of the Premises at Lessee's expense. Lessee may make any interior and exterior alterations necessary to install communications cabling and equipment. Any improvements proposed under this paragraph must receive approval from the Lessor before such improvements are undertaken. Lessor shall not unreasonably withhold approval and shall consider Lessee's installation costs when evaluating alteration alternatives. 13. Signage. Lessee has exclusive rights to signage on the Premises and may remove all or a portion of the existing Southtowne pole sign. Lessee may, at its own expense, install a sign or signs on the existing pole sign or exterior wall of the Premises. Lessee may install exterior lighting for the signage on the Premises at Lessee's expense. 14. Default. Failure to comply with provisions of this Lease Agreement renders this Lease Agreement null and void, and gives either party the right to terminate this agreement. 15. Hold Harmless. Lessee shall defend, indemnify, and hold harmless the Lessor 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 the 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 negligence of the Lessor. 16. Assignment. Neither party shall assign or sublet its rights or responsibilities under this Lease Agreement without the written authorization of the other party. Written authorization shall not be unreasonably withheld. 17. _Binding on Heirs Successors, and Assigns. This Lease shall be binding upon the heirs, executors, administrators, successors, and assigns of both parties hereto. 18. Termination. Pursuant to the terms and conditions of this Lease Agreement between the parties, this Lease Agreement may be terminated upon written mutual agreement between the parties hereto. C2\ Users\ 876 \AppData\LocaPNicroso8\Windows \Temporary Intemet Files \Content.0utlook\LOWDYTWolice NRC Lease v5from FSpacket.doc/PH/05/23 /12 -2- 0 19. Insurance. Lessee shall procure and maintain for the duration of this Lease Agreement, insurance against claims for injuries to person or damage to property which may arise from or in connection with the Lessee's operation and use of the Premises. 21. Liens. Lessee shall keep the premises free from liens arising out of obligations incurred by Lessee. 22. Access For Inspection or Upkeep. Lessor reserves the right to inspect the premises at a reasonable time and with reasonable notice. Lessee must be present during such times. 23. Compliance With All Laws and Regulations. In using the premises, Lessee shall comply with all applicable laws, ordinances and regulations from any and all authorities having jurisdiction. 24. Entire Lease. This agreement contains all of the terms and conditions agreed upon by the parties. The parties agree that there are no other understandings, oral or otherwise, regarding the subject matter of the Lease. No changes or modifications of this Lease shall be valid or binding upon either party to this Lease unless such changes or modifications are in writing and executed by both parties. 25. Severability. It is hereby agreed that no waiver of any condition or covenant in this Lease Agreement, or any breach thereof, shall be taken to constitute a waiver of any subsequent breach. 26. Applicable Law: Venue, Pees This Lease 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 Lease, the parties specifically understand and agree that venue shall be properly laid in King County, Washington. The prevailing party in any such action shall be entitled to its attorney's fees and costs of suit. 27. Notices. Any written notice required or permitted to be given herein shall be made by registered or certified U.S. mail, or by delivery in person to the party which is the intended recipient of the notice, at the following addresses or to such other respective addresses as either party hereto may from time to time designate in writing: Notices to the City of Tukwila shall be sent to the following address: City Clerk City of Tukwila 6200 Southcenter Blvd. Tukwila, Washington 98188 With a copy to: C:1 Users476\AppData \LocaiMlcrosoA\Windaws%Temporary Internet fdeslContent .Outlook\LOVUDYTV\Police NRC Lease v5&om FSpacket.doc/P1V05X23 /12 -3- VA Tukwila Police Department 6200 Southcenter Boulevard Tukwila, WA 98188 Notices to the Lessor shall be sent to the following address: Mike West 18047 Military Road South SeaTac, WA 98188 Notices sent by mail shall be deemed given when properly mailed, and the postmark affixed by the United States Post Office shall be conclusive evidence. IN WITNESS WHEREOF, the parties hereto have executed this Lease Agreement as of the date first written above. LESSE By: ¢✓ Title- A Haggerto or A ST/AUTHENTICATED- 41 Christy O'Flaherty, City Clerk APPROVED AS TO FORM: B y: 2ay P Office of the City Attorney Date approved by City Council: (Applicable if contract amount is over $40,000) LESSOR WWI Printed Name: Address: C:\ Users \876\HppData\Local\Microsoft\Windows \Temporary Intemet Fil cs\ Content.Outtook\LOVUDYTV\Police NRC Lease v5from FSpacket.doc/PH/05/23 /12 -4-