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Home My WebLink AboutReg 2025-12-15 Item 5M - Contract Amendment #1 - Harnett Manor Lease with St Stephen's Housing Association (thru December 2028)COUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared ly Mayor's review Council review 12/8/25 SH 12/15/25 SH ITEM INFORMATION ITEM No. 5.M. STAFF SPONSOR: STACY HANSEN ORIGINAL AGENDA DATE: 12/8/25 AGENDA ITEM TITLE Hartnett Manor Property Lease amendment CATEGORY n Discussion Mtg Date 12/8/25 Motion Mtg Date 12/15 Resolution Mtg Date Ordinance Mtg Date Bid Award Mtg Date Public Nearing [1 Other Mtg Date Mtg Date SPONSOR ❑ Council ►1 Mayor ❑ Admin Svcs ❑ DCD ❑ Finance ❑Fare El PAR El Police ❑ PIr SPONSOR'S SUMMARY Hartnett Manor is a City owned duplex that is utilized as tranistional housing for unsheltered families, in partnership with St. Stephen's Housing Association. The original lease was for one year, expiring on 12-31-25. We are asking the Council to authorize the Mayor's signature on the Hartnett Manor property lease amendment, extending the lease for an additional 3 years (1-1-26 throught 12-31-28) REVIEWED BY ❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ❑ Finance & Governance ❑ Planning & Community Dev. ❑ LTAC DATE: ❑ Arts Comm. ❑ Parks Comm. COMMITTEE CHAIR: ❑ Planning Comm. RECOMMENDATIONS: SPONSOR/ADMIN. Mayor's office/Human Services COM IFIEE Forward to Regular Meeting consent agenda on 12/15/25 COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED $0 AMOUNT BUDGETED $0 APPROPRIATION REQUIRED Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION MTG. DATE ATTACHMENTS 12/8/25 Informational Memorandum dated 12/2/25 12/15/25 St. Stephen's Housing/Hartnett Manor property lease amendment St. Stephen Housing/Hartnett Manor property lease 165 Thomas McLeod, Mayor Mayor's Office - Marty Wine, City Administrator TO: Committee of the Whole FROM: Stacy Hansen, Human Services Program Coordinator CC: Mayor McLeod Director Brandon Miles DATE: December 2, 2025 SUBJECT: Hartnett Manor property lease amendment — signature authorization ISSUE The Hartnett Manor property lease is due to expire on 12-31-25. Upon Council's review and authorization, the Mayor may sign this property lease extending it through 12-31-2028. BACKGROUND Hartnett Manor duplex located at 14688 Macadam Rd. S., is a city owned home located on undevelopable land. The non-profit St. Stephen Housing (SSH) provides 90+ days of temporary shelter/transitional housing to unhoused Tukwila families utilizing the Hartnett Manor home. DISCUSSION Staff is asking Council to approve the date extension for three years on the Hartnett Manor property lease with St. Stephen Housing and authorize the Mayor's signature on the lease. With the partnership of SSH, case management services are provided to unsheltered families that have at least one minor child. By September 30, 2025, Hartnett Manor/SSH had provided 517 bed nights to 14 Tukwila individuals who were unsheltered. 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 December 15, 2025, Regular Council Meeting consent agenda. ATTACHMENTS Hartnett Manor lease amendment Hartnett Manor original lease agreement Tukwila City Hall • 6200 Southcenter Boulevard • Tukwila, WA 98188 • 206-433-1800 • Website: TukwilaWA.gov 166 City of Tukwila 6200 Southcenter Boulevard, Tukwila WA 98188 Agreement Number: CONTRACT FOR SERVICES Amendment # 1 Between the City of Tukwila and St. Stephen Housing for Hartnett Manor located at 14688 Macadam Rd. S., Tukwila, Washington That portion of Contract No. 25-155 between the City of Tukwila and St. Stephen Housing is hereby amended as follows: Section 2: TERM: The term of this lease shall be for three -years, commencing on January 1, 2026 and shall terminate on December 31, 2028, unless sooner terminated as a result of Lessee's default hereunder in accordance with the termination provisions set forth in paragraph 19. All other provisions of the contract shall remain in full force and effect. Dated this day of , 20 City signatures to be obtained by ** Contractor signature to be obtained by City Clerk's Staff ONLY. ** sponsor staff. ** CITY OF TUKWILA CONTRACTOR: Thomas McLeod, Mayor bm ATTEST/AUTHENTICATED: Andy Youn Barnett, City Clerk APPROVED AS TO FORM: Office of the City Attorney By: Printed Name: Title: CA Reviewed May 2020 Page 1 of 1 167 25-155 Council Approval 3/17/25 v�x ��t� � ^�x�� v«*xxwvxvn RESIDENTIAL LEASE AGREEMENT HARTNETT MANOR This lease is made effective January 1` 2025, between the City of Tukwila, m municipal corporation, as "Lessor," and 51 Stephen Housing Association, m Washington nnm-orofd corporation, as "Lessee" (collectively, the "Parties"). W9HEREAS, homelessness continues to be on issue for residents of the City of Tukwila and the greater community stlarge; and WHER(GAS. Lessor, o Washington municipal oorponatinn, has determined that the provision of transitional housing to homeless and impoverished members of the community serves m fundamental governmental purpose as it protects the public health, safety, and welfare; and WHEREAS, Lessee is o Washington non-profit corporation that provides temporary and transitional housing bothe homeless; Now, therefore. the Parties agree as follows: 1. PREMISES: Lessor shall lease to Lessee the Residence currently situated at 14888 Macadam Road Gouth.Tukwila, Washington (^Premmiees''). 2. TERM: The term of this, lease shall be for one year, commencing on January 1. 2025 and ohe|| terminate on December 31, 2025. unless sooner Uaroninobad as a result of Lessee's default hereunder in accordance with the termination prqvimipnsset forth in paragraph 19. The Lessor reserves the right to terminate the |eeaa at its convenience prior to the completion of the one-year term atany time for any reason with 9Odays' prior written notice. 8. POSSESSION: Lessee shall badeemed tm have accepted possession ofthe 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 be responsible for costs moaooiabad with or arising out of the maintenance and operation of the leased Premises as set forth in paragraph 6 of this agreement. 5. USE: Lessee shall use the, leased premises to provide temporary single-family dvveUhnga, on m rent- free basis or for income -based rent, for hnnno|eso fano|||os with children whose income falls below 5096 of King County median income and all current uses incidental theretm, and for no other purpose without first obtaining Lessor's prior written consent. For purposes of this provision, "income -,based rent" means rent that does not exceed 30% of a tenant's income, less an allowance for appl'icable utilities. Lessee shall screen all housing applicants to ensure that applicants meet the income qualifications set forth herein. Lessee shall provide Lessor with anannual report each year reflecting data regarding the populations served by Lessee at the Premises. O. MAINTENANCE AND REPAIR RESPONSILIBITY: Lessee shall, when and if needed, at Lessee's sole oxpense, make any and all necessary minor repairs to the Premises and every part thereof. For purposes of this provision, the term "minor repair" means any repair for vvhiob the ourn total of parts and labor is uoder$5,QO0 per occurrence. Lessee shall not be required to pay more than m Page I of 6 168 total of [$5.000] on, minor repairs during the term of this agreement. Lessee ahmU notify Lessor immediately when Lessee has spent a total of$5.00O on minor repairs during the tmmno nf1hi's agreement. Lessee shall also notify Lessor immediately of any needed major repairs or unsafe conditions existing in or around the Premises. Lessor shall, when and if needed, at Lessor's sole expenme, make all necessary major repairs to the Premises and every part thereof. For purposes of this provision, the term "major repoie' means any repair for which the sum total of parts and labor is $5.0O0 or more. Lessee shall maintain the Premises in m nem1, 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 ohoU pay prior to delinquency for all heat, |iBht, water and other utility aen/ioea supplied bzthe Premises. 8. ALTERATIONS AND ADDITIONS BY LESSEE: After obtaining the prior consent ofLessor, 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 perfo[rumd'mhaU be done in a workmanlike manner and shall become the property of the Lessor. B. LIENS: Lessee oheU keep the leased premises free from any liens arising out of any work perhornled, materials furnished, orob|i0ed|onn incurred by Lessee. 10. INSURANCE- Lessee shall procure and maintain for, the duration of this Lemse, insurance against claims for injuries hopersonsordmmagetm9rnpenyvvhichmnayahae from or|nconnection with the Lessee's operation and use of the |aaaad 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 Genera[ Liability insurance written with limits no less than $1^000.000 each occurrence, $2.000.000 general mg8neQmtm. Commercial General Liability insurance shall he at least as broad' as Insurance San/ivau Office U8O> occurrence form CG UQ 01 and shall cover premises and contractual liability. The Lessor shall be named as additional an insured omLessee's Commercial General Liability insurance policy using ISO Additional Insured - Managers orLessors ofPremises Form, CG!2O11 orasubstitute endorsement providinga1least ms 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 onntmin, or be endorsed to contain that they shall be primary insurance as respect the Lessor. Any |nsuramoe, odf-insunanom, 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 with a ourn*nt/\.K8. Beat rating ofnot less than A: VU|. Lessee shall furnish the Lessor with original certificates and a copy of the amendatory endorsements, including but not necessarily limited to the additional insured eDdo[semment, evidencing the insurance requirements of' the Lessee. Lessee, and Lessor hereby release and discharge each other from all n|mima. 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 Laaoaa shall provide the Lessor with written notice of any policy cancellation within two business days of their receipt of such notice. FmUuna on the part of the Lessee to maintain the insurance as required shall constitute a material breach of [ease, upon which the Lessor may, after giving five business days' notice to the Lessee to Page 2 of 6 <wwm* 10-7058-872; 1/13175o0000 10 169 correct the b[maoh, terminate the Lease or, at its disc[atom, procure or renew such, insurance and pay any and all premiums in connection therevvkh, with any sums so expended to be repaid to the Lessor on demand. If the Lessee maintains higher insurance limits than the minimums ohnvvm above, the Lessor shall be insured for the full available lim,its of Commercial General and Excess or Umbrella |iab0Kh/ maintained by the Lesaee, irrespective of whether, such |innhs 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 ohm|[ maintain all-risk property insurance covering the Residence located on the Premises for its full replacement value. Lessee expressly agrees that should damage arise tothe Premises orResidence that is covered by Lessor's insurance but not Leaaee's. Lessee shall reimburse Lessor for the cost ufLessor's deductible. Such reimbursement shall be made within, thirty days of Lessor's written request for reimbursement. 11.UNDEDNyJUF|CATU0N: Lessee shall bear the sole risk for all personal property on the Premises. Lmem#r, its nfficia|s, employees and m8mntn shall not beliable for any injury to or death of any peroon, urdamage tu property' sustained or alleged to have been sustained by Lessee, invitees or others as a result ofany condition (including future uund�iUuna) in, on orabout 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 10 indemnifv, defend and hold Leosor, and its officia|a, otmff, employees and agents, harmless from any and all claims, liabilities, |ogsea, demnageo, aotions, costs and expenses of any kind (including naoaonmb|e attorneys' fees) arising out of or related to Lessee's use of the Pranliaaa or the operation and/or conduct ofits business or any activity or thing occurring, on orabout the Pnemmioea, and for property damage or bodily injury (including death) suffered on or about the Premises by any peraon, firm or corporation, except to the extent such |uos or damage n*su|Un8 from the gross neg[iQence of the Lessor or a breach of the terms of this Lease. The terms of this Section 11shall survive any expiration ortermination ofthis Lease. The indemnification obligations contained in this 8eot|no 11 shall not bm limited byany worker's compensation benefits ordisability laws, and Lessee hereby waives any immunity that it may have under the Industrial Insurance /\ot. Title 51 RCVVand similar worker's compensation benefits or disability |axxn. Lessee agrees that they have read the above provision and that any questions they had concerning itwere 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 mfficia|a, employees, or agents. 12. ASSIGNMENT AND SUBLETTING: Lessee shall not assign this lease or any part thereof, either by operation of law or othenwise, without first obtaining the priorvvrittan consent of Lessor. 13. DEFAULT: Failure by Lessee to observe or perform any of the covenants, conditions, or provisions of this lease, vvhena such failure mheU continue for e period of ben days after written notice from Lessor to cure the dafaolt, shall constitute a default and breach of the |eena 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 pnannioas and ascertaining compliance with the provisions hereof by Leaaae, but nothing herein shall be construed as imposing any obligation on Lessor to perform Page 3 of 6 170 any such work orduties. 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 ofaccess needed for property testing. 15.COMPLUANCE WITH LAWS, RULES AND REGULATIONS: Lessee shall, atits sole cost and expemse, promptly comply with all |mwm, statutes, prdinmnoes, and governmental n/|ea, regulations or requirements now in force or which may hereafter be in force relating to or affecting the uonditiqna, use, oroccupancy nfthe leased premises. Lessee shall feibhfuU|y observe and comply with the rules and regulations that Lessor shall from time to time promo|ga1e, including, without limitation, those regulations affecting aignagaonthe Property. 16. PERMITS: Lessee ahaN, at its sole cost and empamse, be responsible for obtaining any permits or licenses that are necessary to perform the work and covenants of this lease Agreement. 17.LE/%SEHOL[J EXCISE TAXES: The Parties believe that this Lease is exempt f[onm the requirements ofchapter 82.29A RCVV; hovvemsr, in the event that the! Washington State Auditor's Office determines that leasehold excise tax is ovviog, such costs shall be born by Lessee. In such came. 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.NOqICEL All notices under this lease shall be in writing and shall be effective when mailed by certified mai'l or delivered to Lessor at the address below stated, or to Lessee at the address below stated ortosuch other address as either party may designate from time totime: LESSOR: CITY (]FTUKVVLLA LESSEE: St, Stephen Housing Association ATTN: yWayor"o(]ffiom 13055 SE192ndStreet G2OOSmu1hnentmrBoulevard Renton, Washington 88O58-76O4 Tuikvv|a.\88nshimQton 98188 19. TERMINATION: Either party has the right to 0amninota this Lease if the other podn is in default of any material obligation, or representation of this Ueeao 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, 2O.GENERAL PROVISIONS: A. TIME US0FTHE ESSENCE OF THIS LEASE. B.lothe 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 oua10 of appeal, if any, in such enmuurd as the court may adjudge reasonable Attorneys' fees. For the purposes of this provigion, the terms "action"' or "proceeding" shall include a[bitration, admninietratixe, bankrup1cy, 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: Leaeee, and each individual executing this kyone on behalf of bessmm, represent and warrant that s/he is dub authorized to execute and deliver this leeea. and that this lease |obinding upon Lessee |maccordance with its terms. Page 4 of 6 171 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. LESSOR: Its: Date: ikati ov- Date: in /20 25 APPROVED AS TO FORM: ,—Signed by: 41...A4 10 40Z— Office of the City Attorney LESEEd by au.u, By 1-13AUbe0A3b9U41F Its: Executive Di rector Date:4/21/2025 10:11 AM PDT Page 5 of 6 {NMM4910-7058-8723;1/13175,000001/} 172 STATE OF WASHINGTON ) ) ss. COUNTY OF KING Oro this 1- day of klcix\ , 2025, personally appeared before me the undersigned, a Notary Public, in and for the State of Washington, duly commissioned and sworn, —voiNnas ti\Aci acy-A , to me known to be the Mayor of the City of Tukwila, a Washington state municipal corporation, 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. written. WITNESS MY HAND AND OFFICIAL SEAL hereto affixed the day and year first above •,\\\\"‘"‘ CA r)cON 25010680 /4080 (Signature of Notary V\QVI))\\Q aav\c,do,u\ (Legibly Print or Stamp Name of Notary) Notary public in and for the State of Washington, residing at 1-04ANAO,, My appointment expires Page 6 of 6 {NMIV14910-7058-8723;1/13175.0000010 173