HomeMy WebLinkAbout21-201 - Way Back Inn Foundation - Residential Lease Agreement: Gregor House21-201
Council Approval 11/15/21
RESIDENTIAL LEASE AGREEMENT
GREGOR HOUSE
This lease is made effective December 1, 2021, between the City of Tukwila, a city, as
"Lessor," and Way Back Inn Foundation, a Washington non-profit corporation, 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:
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 years, commencing on December 1,
2021 and shall terminate on November 30, 2026, unless sooner terminated as a
result of Lessee's default hereunder in accordance with the termination provisions
set forth in paragraph 19. The Lessor reserves the right to terminate the lease at its
convenience prior to the completion of the five-year term at any time for any
reason with 90 days' prior written 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
King County median income and all current uses incidental thereto, and for no
other purpose without first obtaining Lessor's prior written consent. Lessee shall
(KZS2490756.DOC;1/13175.000001/ )
(
odiS
Page 1 of 8
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
Premises and every part thereof. Lessee shall maintain the Premises in a neat,
clean, and 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 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 the 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 additional an 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
insurance and shall not contribute with it. Insurance is to be placed with insurers
(KZS2490756.DOC;1/13175.000001/ )
Page 2 of '8
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 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 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
days of Lessor's written request for reimbursement.
11. INDEMNIFICATION: Lessee shall bear the sole risk for all personal property on
the Premises. Lessor, its officials, employees and agents shall not be liable for any
injury to or death of any person, or damage to property, sustained or alleged to
have been sustained by Lessee, invitees or others as a result of any condition
(including future conditions) in, on or about the Premises, or the improvements
comprising any portion of the Premises; or as a result of the Premises becoming out
of repair, or caused by fire or by the bursting or leaking of water, gas, sewer or
steam pipes, or due to or the result of mold, fungus, water intrusion, asbestos, lead
or other toxic materials or chemicals, or due to or the result of any accident from
whatsoever cause in and about the Premises. Lessee agrees to indemnify, defend
and hold Lessor, and its officials, staff, employees and agents, harmless from any
and all claims, liabilities, losses, damages, actions, costs and expenses of any kind
(including reasonable attorneys' fees) arising out of or related to Lessee's use of the
Premises or the operation and/or conduct of its business or any activity or thing
occurring on or about the Premises, and for property damage or bodily injury
(including death) suffered on or about the Premises by any person, firm or
corporation, except to the extent such loss or damage resulting from the gross
(KZS2490756.DOC;1/13175.000001/
Page 3 of 8
negligence of the Lessor or a breach of the terms of this Lease. The terms of this
Section 11 shall survive any expiration or termination of this Lease.
The indemnification obligations contained in this Section 11 shall not be limited by
any worker's compensation benefits or disability laws, and Lessee hereby waives
any immunity that it may have under the Industrial Insurance Act, Title 51 RCW
and similar worker's compensation benefits or disability laws.
Lessee agrees that they have read the above provision and that any questions they
had concerning it were fully explained to their satisfaction by Lessee's attorney or
agent. Lessee understands that they will be the party held financially responsible
under all conditions and not the City of Tukwila or its officials, employees, or
agents.
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 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. LEASEHOLD EXCISE TAXES: The Parties believe that this Lease is exempt from
the requirements of chapter 82.29A RCW; however, in the event that the
Washington State Auditor's Office determines that leasehold excise tax is owing,
{KZS2490756.DOC;1/13175.000001/
Page 4 of ?,i)
such costs shall be born by Lessee. In such case, Lessor may make payment of the
amount determined to be owed, and Lessee shall reimburse Lessor for such costs
within 30 days of receipt of Lessor's request for reimbursement.
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 Foundation
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 Lease 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
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
{1(2S2490756.DOC;1/13175.000001/ )
Page 5 of 13
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:
By:
Its: Mayor
Date: 113
APPROVED AS TO FORM:
Ce
ylDr1
Office of the City Attorney
STATE OF WASHINGTON
COUNTY OF KING
On this / day of L- 17 202-r; personally appeared before me the undersigned, a
Notary Public, in and fo the S• a e of Washington, duly commissioned and sworn,
/'k7 cr:"ICt5;e74, , to me known to be the Mayor of the City of Tukwila, a Washington
state municipal core cori4ration, that executed the foregoing instrument and acknowledged the said
instrument to be the free and voluntary act and deed of said City of Tukwila, for the uses and
purposes therein mentioned, and on oath stated that they are authorized to execute the said
instrument.
)
) ss.
LESSEE:
By:
Its:
Date:
WITNESS MY HAND AND OFFICIAL SEAL hereto affixed the day and year first
0,111111
above \\
0 Commission Number
195243
Dalene B Qualls
-4 My Appointment Expires 0=-7.
10/19/2025
0
WAS
Nrilitliitt‘\\\‘
{KZS2490756 DOC,1/13175 000001/1
(ignatir.e of Nota )
qe.
(Legibly Print or Stamp Name of Notary)
Notary public in/and for the State of Washington,
residing at r 41C
My appointment expi s
/)//ZD25
Page 6 of
6200 Southcenter Boulevard Renton, Washington 98057 -
Tukwila, Washington 98188
19. TERMINATION: Either party has the right to terminate this Lease if the other party
is in default of any material obligation or representation of this lease which default
is incap'aiple of cure, or which being capable of cure, is not cured within ten days
after receiP\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
fees of its attorneys in skt1 action or proceeding, including costs of appeal, if
any, in such amount as thetturt may adjudge reasonable Attorneys' fees. For
the purposes of this provision,\khe terms "action" or "proceeding" shall include
arbitration, administrative, bankroptcy, and judicial proceedings, including
appeals therefrom.
C. This lease shall be construed and 6tkverned by the laws of the State of
Washington.
D. Upon termination of this lease, Lessee shall wrender all keys to the Lessor at
the place then fixed for notice.
21. AUTHORITY OF LESSEE: Lessee, and each individuI executing this lease on
behalf of Lessee, represent and warrant that s/he is duly '4thorized to execute and
deliver this lease, and that this lease is binding upon Lessek!ri accordance with its
terms.
22. WAIVER AND FORBEARANCE: No waiver by Lessor of any brch or default by
lessee of any of its obligations or agreement or covenants herein,sh,all 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 Sc ek remedy
for any breach or default of Lessee be deemed a waiver by Lessor or its\cights 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.
LESSO ot LESSEE:,
By: By
Its: Mayor Its:W6UA V5a
Date:
Date:
(KZS2490756.DOC;1/13175.000001/
lf
-A-Ka Izit‘c
vvn WiLsoupar
Page 3- of
STATE OF WASHINGTON )
) ss.
COUNTY OF KING
On this C 1-1' day of err -lbw; 2021, personally appeared before me the undersigned, a
Notary Public, in and for the State of WashiNton, duly commissioned and sworn,
I( LC) C , to me known to be the esc1 of the Way Back Inn
Foundation, a Washington non-profit corporation, that executed the foregoing instrument and
acknowledged the said instrument to be the free and voluntary act and deed of said Way Back
Inn Foundation, for the uses and purposes therein mentioned, and on oath stated that they are
authorized to execute the said instrument.
WITNESS MY HAND AND OFFICIA
above written.
hereto affixed the day and year first
itDEBRA J s'unKA
NOTARY PUBL.PC #203731
STATE C./F \NASH tNGTON
COIMISSION EXPVRES
NOVEMBER 1, 2022
‘z. mozvs4,7=34-morzs=
{KLS2490756.DOC;1/13175.000001/
(Signature of Notary)
k C
(Legibly Print or Stamp Name
Notary public in and for the
residing at )< e (\
My appointment expires 1 (
of Notary)
State of Washington,
t 2 CD 2
Page) of