Loading...
HomeMy WebLinkAboutCDN 2018-09-25 Item 2C - Lease Agreement - Kennedy's Cottage Lease Renewal*ILA City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Community Development and Neighborhoods FROM: Stacy Hansen, Human Services Program Coordinator CC: Mayor Ekberg DATE: September 13, 2018 SUBJECT: Kennedy's Cottage Lease renewal ISSUE The 5-year property lease on Kennedy's Cottage is expiring October 1, 2018. BACKGROUND Kennedy's Cottage is a City owned home that is on undevelopable land. The non-profit, Way Back Inn, provides 90+ days of temporary shelter/transitional housing to Tukwila families experiencing homelessness. Traditionally a 5-year lease, staff is requesting the lease time frame be extended from October 1, 2018 until December 31, 2022. These three additional months will allow the next renewal cycle to be consistent with Gregor House (another City owned, Way Back Inn managed property). DISCUSSION Staff is asking Council to extend the lease on Kennedy's Cottage for another 5-year lease agreement with the Way Back Inn. With this partnership, WBI volunteers clean and maintain the homes, provide weekly supportive case management meetings with resident families. Through our WBI partnership, Kennedy's Cottage provides roughly 1,300 bed nights annually to families experiencing homelessness. FINANCIAL IMPACT There is no financial impact. RECOMMENDATION The Council is being asked to approve the lease agreement and consider forwarding this item to the October 1, 2018 Regular Council meeting consent agenda. ATTACHMENTS Kennedy's Cottage lease agreement. 19 20 RESIDENTIAL LEASE AGREEMENT KENNEDY'S COTTAGE THIS AGREEMENT is made on October 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 15421 4211d Ave. South, Tukwila, Washington ("Premises"). 2. TERM: The term of this lease shall be for five (5) years, commencing on October 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 21 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 22 Page 2 of 5 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 23 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 24 Page 4 of 5 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 25