HomeMy WebLinkAboutReg 2015-06-01 Item 4C - Lease Agreement - 2015-2016 Neighborhood Resource Center Lease ExtensionCOUNCIL AGENDA SYNOPSIS
ITEM INFORMATION
ITEM NO.
4.C.
771STAFf,
SPONSOR: JON HARRISON
ORIGINAi,AGENDADATE: 06/01/15
AGENDA ITEM TiTi-,j--' Police Neighborhood Resource Center (NRC) Lease Extension
CATEGORY F-1 Discussion
Aftg Date
E Motion
Mtg Date 06101115
F-1 Resolution
Mt
,g Date
F-1 Ordinance
Mt ,g Date
❑ Bid Award
Mtg Date
F-1 Public Hearing
Mt g Date
F-1 Otber
Aftg Date
SPONSOR ❑ Council ❑ Mayor ❑ .HR ❑ DCD ❑ Finance ❑ Fire ❑ IT ❑ P&R E Police ❑ PWI
SPONSOR'S The current lease for the NRC located at 14862 TIB expires on 06/30/15, given the
SUMMARY expected completion of Tukwila Village and the fact that this leased properties continues
to meet the operational needs of the police department, we would like to extend the
current lease and amend it to a price of $1750/month (a $50/month increase) for the
period July 1 2015-June 30, 2016. At that time we will re-evaluate our needs for the lease
based upon the progress of Tukwila Village.
REVIEWED BY ❑ cow Mtg. ❑ CA&P Cmte F&S Cmte ❑ Transportation Cmte
❑ Utilities Cmte ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm.
DATE: 05/19/15 COMMITTEE CHAIR: HOUGARDY
RECOMMENDATIONS:
SPONSOR/ADMIN. Police Department
COMMITTEE Unanimous Approval; Forward to Consent Agenda
COST IMPACT / FUND SOURCE
EXPENDn'uRF,, REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$21,000 $21,000 $0
Fund Source: CURRENT PD BUDGET
Comments: This expense is a currently budgeted item-no additional monies are required for this request.
MTG. DATE
RECORD OF COUNCIL ACTION
MTG. DATE
ATTACHMENTS
06/01/15
Informational Memorandum dated 05/12/15
Contract 12-063 (original lease)
Lease agreement Amendment
Minutes from the Finance and Safety Committee Meeting of 5/19/15
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City 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
3
City of Tukwila Agreement Number:
w 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
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A
12 -063
Council Approval 5/21/12
LEASE AGREEMENT
THIS LEASE AGREEMENT, dated this day ofTU1— 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 1/1/13 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
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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.
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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: Attorney's Fees. 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 Iaid 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:
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Tukwila Police Department
6200 Southeenter 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.
By:_ y
Title- J' Haggert o or
A ST/ UTHENTICATED:
av
Christy O'Flaherty, City Clerk
APPROVED AS TO FORM:
By: (2ac La
Office of the City Attorney
Date approved by City Council: 0�1
(Applicable if contract amount is over $40,000)
LESSOR
By:
Title: ccgx.
Printed Name: 1 -�
Address: k 06b%4-7 S
S �er LQ
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City of Tukwil /
�•, O' Finance and Safety Committee
FINANCE AND SAFETY COMMITTEE
Meeting Minutes
May 19, 2015— 5:30 p.m.; Hazelnut Conference Room
PRESENT
Councilmembers: Kathy Hougardy, Chair; Joe Duffie, De'Sean Quinn
Staff: Peggy McCarthy, Vicky Carlsen, Gail Labanara, Jon Harrison, Laurel Humphrey
CALL TO ORDER: Committee Chair Hougardy called the meeting to order at 5:31 p.m.
PRESENTATIONS No presentations.
II. BUSINESS AGENDA
A. Lease Extension for the Neighborhood Resource Center
Staff is seeking Council approval of a one -year extension to the lease agreement for the
Neighborhood Resource Center located at 14862 Tukwila International Boulevard. The
current lease expires June 30, 2015 and is paid at a monthly rent of $1700. The proposed
extension would go through June 30, 2016 and be paid at an increased rent of $1750 per
month, or $21,000 for the year. This is a budgeted expense and the Police Department wishes
to continue use of this property until a new facility is constructed as part of the Tukwila Village
development. More information about the status of that construction will be available by the
time this extension will expire next summer.of this extension next summer. UNANIMOUS
APPROVAL. FORWARD TO JUNE 1, 2015 REGULAR CONSENT AGENDA.
B. Transportation Benefit District Update
During the 2015 -2016 Budget review process, the Council requested an update in 2015 on
the Transportation Benefit District (TBD) revenue option. In 2014 King County proposed a
combination vehicle license and sales tax TBD that was rejected by voters. Had it been
successful Tukwila could have received over $500,000 annually. There are various funding
options available through a TBD as outlined in the information memo, some requiring voter
approval and others not. If Tukwila implemented a $20 vehicle license fee, the estimated
revenue to the City would be $552,420. If Tukwila voters approved a sales tax of 0.2 %, the
estimated revenue would be $3,600,000.
Committee members discussed the information and requested that this topic return to
Committee as part of a larger conversation about revenue options such as levy lid lift and
B &O tax. Committee Chair Hougardy noted that 2015 is a good opportunity to become
informed about revenue options as it is an off -year in the budget cycle. A similar presentation
will then be presented to the entire Council following Committee review and refinement.
INFORMATION ONLY.
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