HomeMy WebLinkAbout24-060 - Kirshenbaum & Goss, Inc - Lease Agreement:6300 Building Office SpaceCity of Tukwila
6200 Southcenter Boulevard, Tukwila WA 98188
LEASE AGREEMENT
Agreement Number:
24-060
Council Approval 5/6/24
THIS LEASE AGREEMENT ("Lease") is made between the City of Tukwila ("the City" or "Lessor")
Kirshenbaum & Goss, Inc. P.S. ("Kirshenbaum" or "Lessee") (collectively, "the Parties").
IN CONSIDERATION OF the mutual benefits and conditions hereinafter contained, the Parties hereto
agree as follows:
1. Premises. Lessor is the owner of the commercial property located at 6300 Southcenter
Boulevard, Tukwila, Washington (the "Property"). Lessor does hereby agree to lease to
Lessee, a portion of the Property consisting of approximately 462 rentable square feet (the
"Premises"). The Premises do not include the exterior walls, roof, land beneath, pipes, ducts,
conduits, wires, fixtures and equipment above the suspended ceiling, or any other portion of
the Property or the buildings thereon. The City and Lessee agree that the Lessee's pro -rata
share of the Property that the Premises are a part of is 1.09%, based on the ratio of the agreed
rentable area of the Premises to the agreed rentable area of the entire Property as of the start
date of this Lease.
2. Term. This Lease shall be in full force and effect for a period commencing June 1, 2024, and
ending December3l, 2026, unless sooner terminated under the provisions set forth in Section
23. Upon termination of this Lease, the Lessee shall surrender the Premises and all keys
and/or access cards to the City.
3. Possession. Lessee shall be deemed to have accepted possession of the Premises in an "as -
is" condition. The City makes no representations to Lessee regarding the Premises including
the structural condition of the Premises and the condition of all mechanical, electrical and
other systems. Lessee shall be responsible for performing any work necessary to bring the
Premises into condition satisfactory to Lessee. Lessee shall not engage in any improvements
or alterations to the Premises without the express written consent of the City.
4. Rent.
Base rent shall be set at $38.961 per square feet per year, or $18,000.00 per year, to be paid in
monthly installments of $1,500 for the period of June 1, 2024 - December 31, 2025, and
$38.961 per square feet per year, or $18,000 per year, to be paid in monthly installments of
$18,000.00 for the period of January 1, 2026 - December 31, 2026. Rent shall be due on the
first day of each month. If payment is not received by the fifth day of each month, Lessee shall
be responsible for paying a late fee equivalent to five percent (5%) of the delinquent amount
Kirshenbaum & Goss, Inc. P.S. 6300 Lease Page 1 of 9
City of Tukwila
6200 Southcenter Boulevard, Tukwila WA 98188
in addition to the past due payment. All delinquent sums not paid within thirty (30) days of
the due date shall bear interest at the rate of twelve percent (12%) per annum. Interest on all
delinquent amounts shall be calculated from the original due date to the date of payment.
The City's acceptance of less than the full amount of any payment due from Lessee shall not
be deemed an accord and satisfaction or compromise of such payment.
Rent Table
Effective
Approx
SQFT
Cost per
SQFT
Annually
(12-
month
value)
Monthly
6/1/2024
462
$38.961
18,000
1,500.00
1/1/2026
462
$38.,961
18,000
1,500.00
5. Leasehold Excise Tax. Lessee shall pay leasehold excise tax due pursuant to chapter 82.29A
RCW to Lessor by the first day of each month at the rate of 12.84% of the base rent set forth in
Section 4 herein, such amount being $192.60 per month for June 1, 2024 - December 31, 2025,
and $192.60 per month for January 1, 2026 - December 31, 2026. The leasehold excise tax
shall be paid in addition to the monthly rental payment and any other payments required
under this Lease. If the State of Washington changes the leasehold excise tax, the tax payable
by the Lessee each month under this Lease shall be correspondingly modified in compliance
with chapter 82.29A RCW without further action by the parties.
LEASEHOLD TAXTable (12.84%)
Effective
Annually
(12 -
month
value)
Ninthly
6/1/2024
$2,311.20
$192.60
1/1/2026
$2,311.20
$192.60
6. Use of Premises by Lessee. Lessee shall use the Premises for general office use. The
Premises shall be used only for the uses specified herein and not for any other business or
purpose without the prior written consent of the City. No act shall be done on or around the
Premises that is unlawful or that will increase the existing rate of insurance on the Premises
or cause the cancellation of any insurance on the Premises. Lessee shall not commit or allow
Kirshenbaum & Goss, Inc. P.S. 6300 Lease
Page 2 of 9
City of Tukwila
6200 Southcenter Boulevard, Tukwila WA 98188
to be committed any waste upon the Premises or any public or private nuisance. Lessee shall
not do or permit anything to be done on the Premises which will obstruct, cause injury or
interfere with the rights of other tenants, or occupants of the Premises or their customers,
clients and visitors.
7. Lessee Maintenance and Repair Responsibility. Lessee shall, when and if needed, at
Lessee's sole expense, make repairs to the Premises and every part thereof; and Lessee shall
maintain the Premises in a neat, clean, and sanitary condition. Lessee shall surrender the
Premises to the City in good condition upon the termination of this Lease, reasonable wear
and tear expected.
Lessee acknowledges that it has inspected the Premises and is leasing the space "AS -IS."
8. Cosmetic Improvements to Premises. Landlord is not responsible for making any
improvements to the Premises space. Tenant may make non-structural, cosmetic changes to
the space, subject to prior permission from the Landlord, as further detailed in Section 13.
9. Signage. Lessee shall obtain the City's written consent before installing any signs on the
Premises and shall install any approved signage at Lessee's sole expense and in compliance
with all applicable laws. Lessee shall not damage or deface the Premises when installing or
removing signage and shall repair any damage to the Premises caused by such installation or
removal.
10. Utilities, Equipment and Services. The City shalt provide the Premises with the following
services, the cost of which shall be included in the rent paid by Lessee: water, electricity, and
heating/cooling seven (7) days per week. Janitorial service shall be provided by the City to the
common areas only. Lessee is required to provide its own janitorial service within the
Premises.
The Lessee shall pay the City $110 per month for Internet service, payable on the first of each
month along with rent.
11. Destruction of Premises. If the Premises are completely or partially destroyed by fire or
other casualty, of if they are damaged by an uninsured casualty, or by an insured casualty to
such an extent that the damage cannot be repaired within sixty (60) days of the occurrence,
the City shall have the option to restore the Premises or terminate this Lease on thirty (30)
days written notice, effective as of any date not more than sixty (60) days after the occurrence.
If this Section becomes applicable, the City shall advise the Lessee within thirty (30) days after
such casualty whether the City elects to restore the Premises or to terminate this Lease. If the
City elects to restore the Premises, it shall commence and complete the restoration work with
Kirshenbaum & Goss, Inc. P.S. 6300 Lease Page 3 of 9
City of Tukwila
6200 Southcenter Boulevard, Tukwila WA 98188
due diligence. Far the period from the date of the casualty until completion of the repairs (or
the date of termination of this Lease, if the City elects not to restore the Premises), the
monthly base rent shall be abated in the same proportion that the untenantable portion of
the Premises bears the whole thereof, unless the casualty results from Lessee's negligence or
its breach of obligations under this Lease.
12. Hazardous Substances. Lessee shall not generate, release, spill, store, deposit, transport or
dispose of (collectively, "Release") any hazardous substances, sewage, petroleum products,
radioactive substances, medicinal, bacteriological, or disease -producing substances,
hazardous materials, toxic substances or any pollutants or substances defined as hazardous
or toxic in accordance with applicable federal, state and local laws and regulationsin any
reportable quantities (collectively, "Hazardous Substances") in, on or about the Premises.
Lessee shall attach a separate list of Hazardous Substances they propose to store on site and
the City must acceptthe list in writing or Hazardous Substances cannot be stored on site. The
Lessee shall indemnify, hold harmless and defend the City from any and all claims, liabilities,
tosses, damages, clean-up costs, response costs and expenses, including reasonable
attorneys' fees, arising out of or in any way related to the Release by the Lessee or any of its
agents, representatives or employees, or to the presence of such Hazardous Substances in,
on or about the Premises occurring at any time after the effective date of this Lease to the full
extent of the Lessee's liability.
13. Alterations and Additions. After obtaining the prior written consent of the City, Lessee may
make, at its sole expense, such additional improvements or alterations to the Premises which
it may deem necessary or desirable. Any repairs or new construction done by Lessee shall be
done in conformity with plans and specifications approved by the City. All work performed
shall be done in a workmanlike manner and shall become the property of the City.
14. Liens. Lessee shall keep the Premises free from any liens arising out of any work performed,
materials furnished, or obligations incurred by Lessee.
15. Insurance. The Lessee shall procure and maintain for the duration of the 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.
a. No Limitation
The Lessee's maintenance of insurance as required by the Lease shall not be construed
to limit the liability of the Lessee to the coverage provided by such insurance, or
otherwise limit the City's recourse to any remedy available at law or in equity.
Kirshenbaum & Goss, Inc. P.S. 6300 Lease Page 4 of 9
City of Tukwila
6200 Southcenter Boulevard, Tukwila WA 98188
b. Minimum Scope of Insurance. The Lessee shall obtain insurance of the types described
below:
1. 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 City 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.
ii. Property insurance shall be written on an all risk basis.
c. Minimum Amounts of Insurance. Lessee shall maintain the following insurance limits:
i. Commercial General Liability insurance shall be written with limits no less than
$2,000,000 each occurrence, $2,000,000 general aggregate.
ii. Property insurance shall be written covering the full value of the Lessee's property and
improvements with no coinsurance provisions.
d. Other Insurance Provisions. 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 to the City. Any insurance, self-insurance, or insurance pool coverage
maintained by the City shall be in excess ofthe Lessee's insurance and shall not contribute
with it.
e. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M Best
rating of not less than A: VII.
f. Verification of Coverage. Lessee shalt furnish the City with original certificates and a copy
of any applicable amendatory endorsements including, but not necessarily limited to, the
additional insured endorsement evidencing the insurance requirements of the Lessee.
g.
Waiver of Subrogation. Lessee and the City 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.
h. City's Property Insurance. The City shall purchase and maintain during the term of this
Lease, all-risk property insurance covering the Building for full replacement value without
any coinsurance provisions.
i. Notice of Cancellation. The Lessee shalt provide the City with written notice of any policy
cancellation, within two (2) business days of receiving such notice.
Kirshenbaum & Goss, Inc. P.S. 6300 Lease Page 5 of 9
j•
City of Tukwila.
6200 Southcenter Boulevard, Tukwila WA 98188
Failure to Maintain Insurance. Failure on the part of the Lessee to maintain the required
insurance shall constitute a material breach of this Lease upon which the City may, after
giving five (5) business days' notice to the Lessee to correct the breach, terminate this
Lease or, at its discretion, procure or renew such insurance and pay and alt premiums in
connection therewith, with any sums so expended to be repaid to the City on demand.
k. City Full Availability of Lessee Limits. If the Lessee maintains higher insurance limits than
the minimums shown above, the City 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 Lease or whether any certificate of insurance furnished to the City
evidence limits of liability lower than those maintained by the Lessee.
16. Indemnification and Hold Harmless. Lessee shall defend, indemnify, and hold harmless the
City, its officers, officials, employees and volunteers 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 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 sole negligence of
the City. It is further specifically and expressly understood that the indemnification provided
herein constitutes the Lessee's waiver of immunity under Industrial Insurance, Title 51 RCW,
solely for the purposes of this indemnification. This waiver has been mutually negotiated and
agreed to by the Lessee and City. The provisions of this section shall survive the expiration or
termination of this Lease.
17. Assignment and Subletting. Lessee shall not assign this Lease or sublet any portion of the
Premises. Any sublease or assignment made in violation of this provision shall be void.
18. 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 the City to cure the default, shall constitute a default and breach of this
Lease. Lessee shall notify the City promptly of any default not by its nature necessarily known
to the City.
19. Access. After reasonable notice from the City (except in the cases of emergency where no
notice is required), the Lessee shall permitthe City and its agents, employees and contractors
to enter the Premises at all reasonable times to make repairs, alterations, improvements or
inspections. This section shalt not impose any repair or other obligation upon the City not
expressly stated elsewhere in this Lease.
Kirshenbaum & Goss, Inc. P.S. 6300 Lease Page 6 of 9
City of Tukwila
'6200 Southcenter Boulevard, Tukwila WA 98188
20. 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 relation to or affecting the
conditions, use, or occupancy of the leased premises. Lessee shall faithfully observe and
comply with City rules and regulations.
21. Permits. Lessee shall, at its sole cost and expense, be responsible for obtaining any required
permits and licenses necessary to perform the work and covenants of this Lease.
22. Notices. All notices under this Lease shall be in writing and shall be effective when mailed by
certified mail or delivered to the addresses listed below.
Notices to Lessor shall be sent to:
City of Tukwila
ATTN: Mayor's Office
6200 Southcenter Boulevard
Tukwila WA 98188
Notices to Lessee shall be sent to:
Kirshenbaum & Goss
6300 Southcenter Blvd, Ste. 211
Tukwila, WA 98188
23. Termination. Either party may terminate this Lease if the other party is in default as outlined
in Section 18 or at any time on or before the expiration of this Lease by providing a minimum
of thirty (30) days written notice to the other party.
24. ,Applicable Law; Venue: Attorneys' Fees. This Lease shalt 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 in King County, Washington. The prevailing party
in any such action shall be entitled to its attorneys' fees and costs of suit.
25. Authority of Lessee. The Lessee and the individual executing this Lease on behalf of the
Lessee represent and warrant that s/he is duly authorized to execute and deliver this Lease
and upon execution this Lease is binding upon the Lessee in accordance with the terms
herein.
26. Waiver and Forbearance. No waiver by the City of any breach or default by the Lessee of any
of its obligations or covenants herein shall be deemed to be a waiver of any subsequent
breach or default of the same or any other obligation or covenant, nor shall forbearance by
the City to seek remedy for any break or default of the Lessee be deemed a waiver by the City
of its rights and remedies with respect to such breach or default.
Kirshenbaum & Goss, Inc. P.S. 6300 Lease Page 7 of 9
City of Tukwila
6200 Southcenter Boulevard, Tukwila WA 98188
STATE OF WASHINGTON
COUNTY OF KING
)
ss.
I certify that I know or have satisfactory evidence that Thomas McLeod is the person who
appeared before me, and said person acknowledged that he signed this instrument, on oath stated
that he was authorized to execute the instrument and acknowledged it as the Mayor of the City of
Tukwila to be the free and voluntary act of such party for the uses and purposes mentioned in the
instrument.
2N
Dated thisday of
a
) ss.
)
, 2024.
/4vlay %01/141. (Print Name)
Residing at Ivy' No/Ay
My appointment expires //--.2f'�.6
I certify that I know or have satisfactory evidence that David R. Kirshenbaum is the person who
appeared before me, and said person acknowledged that he signed this instrument, on oath stated
that he was authorized to execute the instrument and acknowledged it as the President of
Kirshenbaum &Goss, Inc., P.S. to be the free and voluntary act of such party for the uses and purposes
mentioned in the instrument.
Dated this t 61N day of M u) , 2024.
,,•a,•wNI •••••, 4
\. .n G GFti''
? ' p1RE •o� �'.
1- NOTARY a:
z Cf ° PtiBLici ;ijz
4.r�y Qa 6 .
[Stam�prsp$ A} Aro:2;! 'CL 44,,
,,, WAttt II S ',,.•`°,
P [i•"rWashi ton
C,VNotary c I7/,W 7Y (4,2
(Printed or Stamped Name of Notary
Residing at Veil V "' parl t5Yirh k-
Myappointment expires: )-1.5/202.5
Kirshenbaum & Goss, Inc. P.S. 6300 Lease Page 9 of 9
City of Tukwila
6200 Southcenter Boulevard, Tukwila WA 98188
27, Entire Agreement - Modification. This Lease Agreement together with all exhibits or
addenda expressly incorporated herein by reference and attached hereto shall constitute the
whole agreement between the Parties. There are no terms, obligations, covenants or
conditions other than those contained herein. Except as otherwise provided, no modification
or amendment of this Lease Agreement shall be valid or effective unless evidenced by an
agreement in writing signed by both parties.
28. Severability and Survival. If any term, condition or provision of this Lease is declared void
or unenforceable or limited in its application or effect, such event shall not affect any other
provisions hereof and all other provisions shall remain fully enforceable.
CITY OF TUKWILA
Attest:
By:
/—Do<u51DneE by:
t/3•` ......A4`_
•—O4
3DAB9?44FA4E5...
AndyYoun, City Clerk
Approved as to form:
i—DDocuSIDn,d by: g
aALL
By: s-5E499CA4155E452
City Attorney
KIRSHENBAUM & GOSS
By:
David . irshenbaum
President
Kirshenbaum & Goss, Inc. P.S. 6300 Lease Page 8 of 9