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HomeMy WebLinkAboutSpecial 2017-12-11 Item 3B - Lease Agreement - 2018-2022 Gregor House Lease Agreement with Way Back InnCOUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by 21,17ors review Council review 12/11/17 SH for Way Back Inn, Gregor House 12-11-17 Motion Date 12-11-17 E Resolution ANDate El Ordinance Altg Date E Bic L,Iward Mtg. Date E Public Hearing Mg Dale E Other Mg Date CATEGORY Discussion 2 Mg Date Altg SPONSOR E Council EMayor EHR D6'D EFinance EFire TY EP&R EPolice EP1V Court SPONSOR'S This item is to approve a 5 -year lease with the Way Back Inn on the Gregor House located SUMMARY at 14239 42nd Ave. S. The Way Back Inn provides housing to Tukwila families experiencing homelessness and has partnered with the City of Tukwila on this effort for more than 15 years. ITEM INFORMATION ITEM No. 4.D. & Spec 3.B. 253 STAFF SPONSOR: STACY HANSEN ORIGINAL AGENDA DATE: 12/11/17 AciND:\ HEN' TITLE Lease for Way Back Inn, Gregor House 12-11-17 Motion Date 12-11-17 E Resolution ANDate El Ordinance Altg Date E Bic L,Iward Mtg. Date E Public Hearing Mg Dale E Other Mg Date CATEGORY Discussion 2 Mg Date Altg SPONSOR E Council EMayor EHR D6'D EFinance EFire TY EP&R EPolice EP1V Court SPONSOR'S This item is to approve a 5 -year lease with the Way Back Inn on the Gregor House located SUMMARY at 14239 42nd Ave. S. The Way Back Inn provides housing to Tukwila families experiencing homelessness and has partnered with the City of Tukwila on this effort for more than 15 years. RiAmwiq) BY E C.O.W. Mtg. r Trans &Infrastructure DATE: 11-27-17 , CDN Comm E Finance Comm. Public Safety Comm. E Parks Comm. Planning Comm. COMMITTEE CHAIR: HOUGARDY E Arts Comm. RECOMMENDATIONS: SPONSOR/ADMIN. COMMITTEE Mayor's Office Unanimous Approval; Forward to C.O.W. & Special Meeting COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED SO SO $0 Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 12/11/17 MTG. DATE ATTACHMENTS 12/11/17 Informational Memorandum dated 11-13-17 Gregor House Lease Minutes from the CDN committee meeting of 11-27-17 253 254 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Community Development and Neighborhoods Committee FROM: Stacy Hansen, Human Service Program Coordinator CC: Mayor Ekberg DATE: November 1, 2017 SUBJECT: Lease for Way Back Inn, Gregor House ISSUE Staff discussed the development of a five-year lease with the Way Back Inn for Gregor House at CDN on October 25, 2017. Since there was committee consensus to move forward with a five- year lease, we are returning with the lease for review and approval to move forward. BACKGROUND The City has worked with the Way Back Inn organization for more than 15 years. Way Back Inn provides short term housing for homeless families with children at the properties they manage, including three properties owned by the City of Tukwila. Way Back Inn already has long-term leases for two other City of Tukwila owned homes: • Hartnett Manor, next to the Winter Garden has a 10 -year lease with the City, which ends in November of 2021. • Kennedy Cottage, near 42nd Ave. S. and Southcenter Boulevard, is currently in a five-year lease, which ends in October of 2018 The Gregor House is currently without a lease as it has been uncertain whether the property would be used for Tukwila Village or if the Tukwila School District wanted to purchase it. Both Tukwila Village and the District have confirmed there are no plans to purchase the property. DISCUSSION Recently Human Services prepared a memo for the Council outlining what activities were in place to address homelessness. The Way Back Inn was included as a provider to keep families from living on the street and offering a brief respite to help them return to permanent housing. In 2016, the Way Back Inn served 59 residents. 13 families moved in and 11 moved out successfully. In 2015 11 families exited with nine of them moving into permanent housing. Typically, families are provided 90 bed nights at Gregor House, resulting in more than 5,000 bed nights a year for families that might otherwise be homeless. Through the Human Services Division, the City contracts with the Way Back Inn for $9,000 a year to cover the utilities including, water, sewer, and waste management. They have been excellent stewards of the properties. FINANCIAL IMPACT A long-term lease would commit the City to use of this property for homelessness intervention/prevention and thus the property would not be available for any other development during the length of the lease. RECOMMENDATION Council committee is being asked to approve the 5 -year lease with the Way Back Inn on the Gregor House and consider this item at the December 11, 2017 Committee of the Whole meeting and Special Meeting to follow that same night. ATTACHMENTS Way Back Inn Gregor House Lease. 255 256 RESIDENTIAL LEASE AGREEMENT GREGOR HOUSE THIS AGREEMENT is made on January 1, 2018, between the City of Tukwila, a Washington municipal corporation, as "Lessor," and the Way Back Inn, a Washington non-profit, as "Lessee" (collectively, the "Parties"). WHEREAS, homelessness continues to be an issue for residents of the City of Tukwila and the greater community at large; and WHEREAS, Lessor, a Washington municipal corporation, has determined that the provision of transitional housing to homeless and impoverished members of the community serves a fundamental governmental purpose as it protects the public health, safety, and welfare; and WHEREAS, Lessee is a Washington non-profit corporation that provides temporary and transitional housing to the homeless; NOW, THEREFORE, the Parties agree as follows: 1. PREMISES: Lessor shall lease to Lessee the residence currently situated at 14239 42nd Avenue South, Tukwila, Washington ("Premises"). 2. TERM: The term of this lease shall be for five (5) years, commencing on January 1, 2018, and shall terminate on December 31, 2022, in accordance with the termination provisions set forth in paragraph 19, unless sooner terminated as a result of Lessee's default hereunder. The Lessor reserves the right to terminate the lease prior to the completion of the one-year term at any time for any reason with ninety (90) days' notice. 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. CONSIDERATION: In consideration of Lessee providing housing to homeless members of the Tukwila community, Lessee may occupy the leased premises rent free for the duration of this Lease; provided, Lessee shall make any and all necessary improvements to the Premises, including the residence located thereon, at Lessee's sole expense. Such improvements shall not be commenced without the express written consent of Lessor and shall be subject to final inspection and the approval of the Lessor. Further, Lessee shall 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 whose income falls below 50% of the King County median household income, and all current uses incidental thereto, Page 1 of 5 257 and for no other purpose without first obtaining Lessor's prior written consent. Families housed by Lessee at Lessee shall screen all housing applicants to ensure that applicants meet the income qualifications set forth herein. Lessee shall provide Lessor with an annual report each year reflecting data regarding the populations served by Lessee at the Premises. 6. LESSEE MAINTENANCE AND REPAIR RESPONSILIBITY: Lessee shall, when and if needed, at Lessee's sole expense, make any and all necessary repairs to the leased premises and every part thereof. 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. 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: Lessee shall procure and maintain for the duration of this Lease, 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 this Agreement shall not be construed to limit the liability of the Lessee to the coverage provided by such insurance, or otherwise limit the Lessor's recourse to any remedy available at law or in equity. Lessee shall maintain Commercial General Liability insurance written with limits no less than $1,000,000 each occurrence, $2,000,000 general aggregate. Commercial General Liability insurance shall be at least as broad as Insurance Services Office (ISO) occurrence form CG 00 01 and shall cover premises and contractual liability. The Lessor shall be named as an additional 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 at least as broad coverage. Lessee shall also maintain property insurance, which shall be written covering the full value of Lessee's property and improvements with no coinsurance provisions. Property insurance shall be written on an all risk basis. 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 the Lessor. Any Insurance, self-insurance, or self-insured pool coverage maintained by the Lessor shall be excess of the Lessee's Page 2 of 5 258 insurance and shall not contribute with it. Insurance is to be placed with insurers with a current A.M. Best rating of not less than A: VII. Lessee shall furnish the Lessor 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. Lessee and Lessor 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. The Lessee shall provide the Lessor with written notice of any policy cancellation within two (2) business days of their receipt of such notice. Failure on the part of the Lessee to maintain the insurance as required shall constitute a material breach of lease, upon which the Lessor 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 Lessor on demand. If the Lessee maintains higher insurance limits than the minimums shown above, the Lessor shall be insured for the full available limits of Commercial General and Excess or Umbrella liability maintained by the Lessee, irrespective of whether such limits maintained by the Lessee are greater than those required by this contract or whether any certificate of insurance furnished to the Lessor evidences limits of liability lower than those maintained by the Lessee. During the term of this Lease, the Lessor shall maintain all-risk property insurance covering the residence located on the Premises for its full replacement value. Lessee expressly agrees that should damage arise to the Premises or residence that is covered by Lessor's insurance but not Lessee's, Lessee shall reimburse Lessor for the cost of Lessor's deductible. Such reimbursement shall be made within thirty (30) days of Lessor's written request for reimbursement. 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 attorneys' 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. 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 (10) days after written notice from Lessor to cure the default, shall Page 3 of 5 259 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 forty-eight (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. 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 Page 4 of 5 260 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 he/she 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. CITY OF TUKWILA: WAY BACK INN: By: By: Its: Its: Date: Date: APPROVED AS TO FORM: Office of the City Attorney Page 5 of 5 261 262 Community Development & Neighborhoods Minutes November 27, 2017 C. Human Services Strategic Plan Staff is seeking Council approval of a new work plan for the Human Services Program. The Plan was developed following information gathering from internal and external partners, factoring in current needs and gaps, best practices, and the department's reorganization. The Plan describes short, medium and long-term goals and creates a foundation for the future as community needs, funding and priorities change. The Committee members asked as to whether there are any major diversions in the plan. Staff indicated that there is no major diversion but concentrated some of our efforts, particularly around partnerships and other activities that we can improve. Members of the Human Services Advisory Board in attendance indicated their support for the plan. UNANIMOUS APPROVAL. FORWARD TO DECEMBER 11, 2017 COMMITTEE OF THE WHOLE. D. Lease Agreement: Way Back Inn Staff is seeking Council approval of a five-year lease agreement with the Way Back Inn for the *Gregor House property located at 14239 42nd Avenue South for continued operation of short term housing for homeless families with children. Both Tukwila Village and the Tukwila School District have confirmed there are no plans to purchase the property, and on October 25, 2017 the Committee expressed support for staff to return with a lease agreement. The Way Back Inn operates three properties owned by the City and are considered excellent partners and property stewards. UNANIMOUS APPROVAL. FORWARD TO DECEMBER 11, 2017 COMMITTEE OF THE WHOLE. II. MISCELLANEOUS None. Adjourned 6:52 p.m. Minct'es by RB Committee Chair Approval 263