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RESOLUTION _NO. 4 6.3 8
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF AUBURN, WASHINGTON, AUTHORIZING
THE MAYOR AND CITY CLERK TO EXECUTE A
PARKING LOT-. LEASE 'AGREEMENT BETWEEN
THE CITY OF AUBURN AND AUBURN REGIONAL
MEDICAL CENTER
WHEREAS, the City of Auburn owns a parking lot situated on of King
County Tax Parcels 0492000460, 049200461 and 049200463; and
WHEREAS, Auburn Regional Medical Center desires to lease a number
of parking stalls within the lot at a price that is acceptable to the City.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
KING COUNTY, WASHINGTON, HEREBY RESOLVES as follows:
Section 1. The Mayor of the City of Auburn and the Auburn City Clerk
are hereby authorized to execute a Lease Agreement between the City of
Auburn and Auburn Regional Medical . Center for parking stalls, which
agreement shall be in substantial conformity with the Mel's Parking Lot Lease
Agreement attached hereto, marked as Exhibit "A" and incorporated herein by
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this reference.
Section 2. The Mayor is hereby authorized' to implement such
administrative procedures as may be necessary to carry out the directives of
this legislation.
Resolution No. 4638
August 24, 2010
Page 1 of 2
Section 3. This resolution shall be in full force andi effect upon
passage and signatures hereon.
2010.
Signed this day of ,
CI UBU
PETER B. LEWIS, ;MAYOR
ATTEST:
Danielle E. Daskam, City Clerk
APP VED TO FORM:
D iel B. eicl City Att ey
Resolution-No. 4638
August 24, 2010
Page 2 of 2
MEL'S PARKING LOT LEASE AGREEMENT
THIS PARKING LOT LEASE AGREEMENT (this "Lease") is entered into
by and between Landlord and Tenant, as described in the following basic lease
information, as of the It day of /LLA s-of, 2010. Landlord and Tenant
hereby agree as follows:
ARTICLE 1. BASIC LEASE INFORMATION.
1.1 In addition to the terms which are defined elsewhere in this Lease, the
following terms shall have the following meanings:
(a) Landlord: City of Auburn, a Washington municipal corporation
(b) Landlord's Address: 25 West Main St., Auburn, WA 98001,
(c) Tenant: Auburn Regional Medical Center (ARMC), a Washington
corporation
(d) Tenant Address: Plaza One, 202 North Division Street, Auburn,
WA 98001
(e) Parking Lot: Parking Lot located at King County Tax Parcel ID
nos. 0492000460, 0492000461 and 049200463.
(f) Parking Stalls: The spaces available for use by Tenant as identified
in the document titled "ARMC Parking Stalls" attached hereto as
Exhibit A, which Exhibit may be modified from time to time in
accordance with this Lease. Tenant's Monthly Rent as defined in
Section 0) of this Agreement shall be recalculated to reflect the
number of parking stalls Tenant retains.
(g) Term: The duration of the Lease shall be the Term. The Term will
commence on the Commencement Date and will expire on the
Expiration Date.
(h) Commencement Date: k4,tjz G Ff I S , act.(
(i) Monthly Rent: The total amount due from Tenant to Landlord.
ARTICLE 2. AGREEMENT USE. MAINTENANCE AND REPAIR
2.1 Lease. Landlord hereby leases up to eighty (80) Parking Stalls to Tenant,
and Tenant hereby leases the Parking Stalls from Landlord, according to the terms and
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conditions of this Lease. Landlord reserves the right to reduce the number of parking
stalls available to Tenant. The Landlord shall provide Tenant with a minimum of thirty
(30) calendar days prior-written - notice of the number of parking stalls that Landlord will
make ,available beginning the first day of the month following the -notice, along with a
revised Exhibit =A reflecting the Tenant parking stalls. Landlord will be deemed to have
delivered possession of theParking Stalls to.Tenant on the Commencement Date, and
Tenant will be-deemed to have accepted the Parking Stalls, based on its own inspection
and not relying on any statement of the condition of the Parking Stalls by Tenant or its
agents, in its present -"as=is" condition.
2.2 Use. Tenant shall use the Parking Stalls only for the purpose of parking
motor vehicles -and purposes. incidental to that use.. Tenant shall not. allow the Parking
Stalls to be used -for any unlawful purposes or for purposes that may result in a violation,
of any local, state or`federal laws, statutes or ordinances applicable to the Parking Stalls.
2.3 Maintenance and Repair. Tenant agrees to keep the Parking.Stalls in good
order and repair.
2.4 Term. The term of this lease shall be month-to-month, with no set
expiration- date. Either partymay terminate this Lease on thirty (30) days' prior Written
notice from the. terminating party to the other party.
J ARTICLE 3. RENT
3.1 Monthly Rent. Tenant shall pay the Monthly Rent to Landlord as rent for
the Parking. Stalls. Tenant , agrees to pay forty ($40) dollars per. parking stall, plus
applicable Operating Costs 'as defined in' Section 3.2, per month. Minimum monthly rent
shall be three thousand two -hundred and 00/100 dollars ($3,200) in. rent plus any
applicable leasehold excise tax currently. 12.84% for a monthly total'of three thousand six
hundred ten and 88/100 dollars ($3;610.88)._ Monthly Rent will be paid in advance, to
Landlord at the City of Auburn 25 West Main Street, Auburn- WA 98001, or to such
other person or place as, Landlord designates to Tenant in writing, on or before the first
day of each calendar month of the Term, without written notice or demand. If the Term
commences on a day other than the first day of a calendar month or ends on. a day other
than the last day of a calendar month, then the Monthly Rent will be appropriately
prorated.
3.2 Operating Costs. Tenant acknowledges and agrees that costs and expenses shall
include, but are not limited to: Leasehold Excise Taxes at 12.84% of the Monthly Rent (if
Leasehold Excise Tax .is required by state statute), any, pro rata share of costs and expenses
incurred by Landlord in each month -in connection with.the upkeep, operation, maintenance,
repair, and management of the Parking Stalls.
ARTICLE 4. INSURANCE AND INDEMNITY
4.1 Tenant's Insurance. At all times during the Term, Tenant will carry and
maintain, at Tenant's expense, the following insurance in the amounts specified below or
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such other amounts as Landlord may from time to time reasonably request, with
insurance companies and on forms satisfactory to Landlord to the extent allowed by
applicable law:
(a) Bodily injury and property damage liability insurance, with a
combined single occurrence, limit of not less than $1,000,000. All such insurance will be
equivalent to coverage offered by a Commercial General Liability and Garage Keeper's
Legal Liability form including, without limitation, personal injury, death of persons or
damage to property occurring in, on, or about the Parking Lot, and contractual liability
coverage for the performance by Tenant of the indemnity agreements set forth in Section
4.3 of this Lease;
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(b) Worker's compensation insurance insuring against and satisfying
Tenant's obligations and liabilities under the worker's compensation laws of the State
where the Parking Lot is located, including employer's liability insurance in the limits
required by the laws of the State where the Parking Lot is located;
(c) Auto Liability for all owned, hired, or non-owned vehicles on the
Parking Lot, at a limit of liability not less than $1,000,000 combined bodily injury and
property damage; and
(d) Any additional insurance reasonably requested by Landlord to
cover any unusual risks created by the nature of Tenant's use of the Parking Stalls.
4.2 Forms of the Policies. Certificates of insurance, together with copies of
endorsements, -when applicable, listing Landlord and any others specified by Landlord as
an additional insured, will be delivered to Landlord prior to Tenant's occupancy of the
Parking Stalls and.from time to time at least 10 days' prior to the expiration of the term of
each such policy. All Commercial General Liability or comparable policies maintained
by Tenant will name --Landlord and such other persons or entities as Landlord specifies
from time to time as an additional insured entitling them to recover under such policies
for any loss sustained by them, their agents and employees. All such policies maintained
by Tenant will provide that they may not_ be terminated nor may coverage be reduced
except after 30, days' prior written notice to Landlord. All Commercial General Liability
and property policies maintained by Tenant will be written as primary policies, not
contributing with and not supplemental to the coverage that Landlord may carry.
4.3 Indemnification, Waiver, and Release.
(a) Indemnification. Tenant will neither hold nor attempt, to hold Landlord,
its employees or agents liable for, and Tenant will indemnify and hold Landlord, its employees
and-agents harmless from and against, any and all demands, claims, causes of action, fines,
penalties damages (including consequential damages), liabilities, judgments, and expenses
(including, without limitation, reasonable attorneys' fees) which arise out of or relate to: (1) the
use or occupancy or manner of use or occupancy of the Parking Lot by Tenant or any person
claiming under Tenant; (2) any activity, work, or thing done or permitted by Tenant in or about
the Parking Lot; (3) any breach by Tenant or its employees, agents, contractors or invitees of this
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Lease; and (4) any injury, loss or damage to the person, property or business of Tenant, its
employees, agents, or contractors or any invitees entering upon the Parking Lot under the express
or implied invitation of Tenant. If any action or proceeding is brought against Landlord or its
employees or agents by reason of any such claim for which Tenant has indemnified Landlord,
Tenant, upon written notice from Landlord, will defend the same at Tenant's expense with
counsel reasonably satisfactory to Landlord.
(b) Waiver and Release. It is further specifically, and expressly
understood that the indemnification, provided herein constitutes the Tenant's waiver of
immunity under Industrial Insurance, Title 51 RCW, solely for the purposes of this
indemnification. This waiver has. been mutually negotiated by the parties. The
provisions of this section shall survive the expiration or termination of this Agreement.
(c) Notwithstanding the above, Tenant shall not be required to
indemnify Landlord for any claim, expense or liability caused by the negligent or
intentional acts or omissions of Landlord, its employees, contractors or agents
ARTICLE 5. GENERAL
5.1 Events of Default. The occurrence of any one or more of the following
events shall constitute an "Event of Default" under this Lease: (i) any,part of the
Monthly Rent or Operating Expenses are not paid when due, or (ii) any nonperformance,
breach or default under any other provision of this Lease.
5.2 Landlord's Remedies. If any Event of Default occurs, then Landlord shall
have the right, at its election:
(a) To terminate this Lease, in which case Tenant's right to possession of the
Parking Stalls will cease and this Lease will be terminated as if the expiration of the term
fixed in such notice were the end of the Term.
(b) To cure any Event of Default and to charge Tenant for the cost of effecting
such cure, including without limitation reasonable attorneys' fees and Default Interest
provided that Landlord will have no obligation to cure any such Event of Default of
Tenant.
Each right and remedy.provided for in this Lease is cumulative and is in addition
to every other right or remedy provided for in this Lease or at law or in equity. If a
dispute arises under the terms of this Lease or if any payment required by this Lease is
not paid-when due and the matter is turned over to an.attorney, the prevailing party in the
dispute will be entitled to receive its reasonable attorneys fees in addition to the other
damages and costs recoverable under this Lease.
5.3 Quiet Enjoyment. So long as Tenant performs all covenants and
obligations contained in, this Lease, Landlord warrants quiet enjoyment of the Parking
Stalls by Tenant; provided that Landlord, its agents or representatives may enter upon and
inspect the Parking Stalls at reasonable times upon reasonable notice. Landlord's failure
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to comply with this Section shall not give Tenant any right to terminate this Lease, to
abate or reduce the Monthly Rent; Operating Expenses or fail to perform any of Tenant's
obligations hereunder.
5.4 Liens. Tenant will keep the Parking Lot free and clear of all mechanics'
liens and other liens on account of work done for Tenant or persons claiming under
Tenant.
5.5 Environmental Matters.
(a) Tenant's Obligations.
(1) Tenant will not cause or permit the storage, treatment or
disposal of any Hazardous Materials in, on, or about the Parking Lot by Tenant, its
agents, employees or contractors. Tenant will not permit the Parking L,ot to be used or
operated in a manner that may cause the Parking Lot or any part of the Parking Lot to be
contaminated by any Hazardous Materials in violation of any Environmental Laws.
Tenant will not use or permit the Parking Lot to be used for maintenance of its vehicles.
(2) Tenant will be solely responsible for and will defend,
indemnify, and hold Landlord, its agents and employees harmless from and against all
direct claims, costs,.and liabilities, including attorneys' fees and costs, arising out of or in
connection with Tenant's breach of its obligations in this Section.
(3) Tenant will be solely responsible for and will defend,
indemnify and hold Landlord, its agents, and employees harmless from and against any
and all direct claims, costs, and liabilities, including attorneys' fees and costs, arising out
of or in connection with Tenant's introduction of Hazardous Materials t6the Parking Lot.
Tenant's obligations under this Section shall survive the expiration or other termination
of this Lease.
(b) Definitions.
"Hazardous Materials" means asbestos, petroleum products,
r explosives, radioactive materials, hazardous, waste, hazardous substances, or hazardous
materials including, without limitation, substances defined as "hazardous substances" in
the Comprehensive Environmental Response Compensation Liability Act of 1980, as
amended, 42 U. S. C. Sec-. 9601-9657 ("CERCLA"); the Hazardous Material
Il Transportation Act of 1975, 49 U.S.C. Sec. 1801-18.12; the Resource Conservation
Recovery Acts of 1976, 42 U.S.C. Sec. 6901-6987; the Occupational Safety And health
Act of 1970, 29 U.S.C. Sec. 6901-6987;, the Occupational Safety And Health Act of
1970, 29 U.S.C. 651 et seq., or any other federal, state or local statute; law, ordinance,
code, rule, regulation, order or decree regulating, relating to, or imposing liability or
standards of conduct concerning hazardous materials, wastes or substances now or at any
time hereinafter in effect (collectively, "Environmental Laws").
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5.6 Termination. At the expiration or other termination of this Lease,
pursuant to Sections 2.4, 5.2, or 5.8 hereof, or through any other process or provision
hereunder or through any remedy available under the law, Tenant will promptly quit and
surrender the Parking Stalls to Landlord in good order and repair, ordinary wear and tear
excepted. All effects, additions and improvements on the Parking .Stalls after, the end of
the Term shall be deemed conclusively to have been abandoned and may be appropriated,
sold, stored, destroyed, or otherwise disposed of by Landlord without notice to Tenant or
any other person and without obligation to account for them.
5.7 Assignment and Subletting. Tenant shall not assign or sublet the Parking
Stalls without the written approval of Landlord, which approval may be withheld in the
sole discretion of the Landlord. If Landlord consents to a proposed assignment or
sublease, then Landlord may require Tenant to pay to Landlord a sum equal to 50% of
any rent and other consideration, profit or gain realized by Tenant from such sublease or
assignment, in excess of the rent allocable to the transferred space then being paid by
Tenant to Landlord pursuant to the Lease (after deducting the costs of Tenant, if any, in
effecting the assignment or sublease, including reasonable alteration costs, commissions
and legal fees).
5.8 Subsequent Landlord. In the event of any sale or lease of Landlord's
interest in the Parking Lot, the Landlord shall be "relieved of all covenants and obligations
hereunder, and this Lease shall be deemed terminated on notice to Tenant of such sale of
lease.
5.9 Notices. Notices and' other communications required under this Lease
shall be in writing and shall be deemed given (i).'upon personal delivery, (ii) three (3)
business days after deposit in the. United States mail, first class, postage prepaid,
certified, return receipt requested, or (iii) one (1) business day after time delivery to an
overnight courier, to the addresses as set forth in Section 1.1. Either party may by similar
notice change the address to which future notices or other communications shall be sent.
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5.10 Time is of the Essence. Time is of the essence for each and every
provision of this Lease.
5.11 No Waiver. The waiver by either Landlord or Tenant of any agreement,
condition, or provision contained in this Lease will not be deemed to be a waiver of any
subsequent breach of the same or any other agreement, condition, or provision contained
in this Lease.
5.12 JURY WAIVER. IF ANY ACTION, PROCEEDING, CLAIM OR
COUNTERCLAIM IS BROUGHT BY LANDLORD OR TENANT AGAINST THE
OTHER OR THEIR SUCCESSORS OR ASSIGNS WITH RESPECT TO ANY
MATTER WHATSOEVER ARISING OUT OF OR IN CONNECTION WITH THIS
LEASE, THE USE AND OCCUPANCY OF THE PARKING LOT, THE
RELATIONSHIP BETWEEN LANDLORD AND TENANT, ANY CLAIM FOR
INJURY OR DAMAGE, OR ANY EMERGENCY OR STATUTORY REMEDY,
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LANDLORD AND TENANT EACH HEREBY KNOWINGLY AND VOLUNTARILY
WAIVES TRIAL BY JURY. IF LANDLORD COMMENCES ANY SUMMARY
PROCEEDING FOR NONPAYMENT OF RENT, TENANT WILL NOT INTERPOSE
(AND WAIVES THE RIGHT TO INTERPOSE) ANY COUNTERCLAIM IN ANY
SUCH PROCEEDING.
5.13 Brokers. Landlord and Tenant respectively represent and warrant to each
other that neither of them has consulted or negotiated with any broker or finder with
regard to the Parking Stalls and will defend, indemnify and hold the other party harmless
from any claims or damages, including reasonable attorneys fees, arising from any
breach of this provision..
5.14 Authority. Each of the parties executing this Lease on behalf of the
Tenant or the Landlord represents to the other party that such party is authorized to do so
by requisite action of the-party to this Lease.
5.15 Entry by Landlord. Landlord, its agents, employees, and contractors may
enter the Parking Lot at any reasonable hour.
5.16 Governing Law. This Lease will be governed by and construed pursuant
to the laws of the state in which the Parking Lot is located.
5.17 Entire Agreement, Amendment. This Lease contains the entire agreement
between Landlord and Tenant. No amendment, alteration, modification of, or addition to
the Lease will be valid or binding unless expressed in writing and signed by Landlord and
Tenant.
'i 5.18 Late Rent. Any installment of Monthly Rent not paid on its due date shall
II bear a late charge of 5% of the delinquent installment, to compensate Landlord for its
administrative expenses relating to such delinquency. Further, any Monthly Rent not
paid when due will accrue interest at the default rate of the Prime Rate plus 5% per
annum, but in no event in an amount in excess of the maximum gate allowed by
applicable law ("Default Interest") from the date on which it was due until the date on
which it is paid in full with accrued interest.
The term "Prime Rate" shall mean the rate of interest from time to time as
published in the Wall Street Journal under the table, "Money Rates," or any successor to
it, as the prime rate. If the Wall Street Journal or any successor to it ceases to publish the
prime rate, the Prime Rate will be a comparable interest rate designated by Landlord to
replace the Prime Rate.
5.19 Landlord Fees. If Tenant requests that Landlord take any action or give
any consent required or permitted under this Lease or execute an instrument or document
of estoppel, subordination, nondisturbance or the like, Tenant will reimburse Landlord for
their fees costs and expenses incurred in reviewing, negotiating, preparing, processing,
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executing and delivering the proposed action consent, instrument or document,
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including, without limitation, reasonable attorneys' fees (including Landlord's in-house
counsel fees and costs, at market-rate) and engineers' fees (including Landlord's in-house
engineers' fees and costs, at market-rate), on or before ten (10) days after Landlord's
delivery 'to Tenant of a statement of such fees, costs and expenses. Tenant will be
obligated to make such reimbursement without regard to whether Landlord consents to
any such proposed,- action or"executes any such proposed instrument or document.
EXECUTED as of the day and year first above written.
LANDLORD: TENANT:
City of Auburn, a Washington
municipal c oration
By: By:
Its: Its: &,,C041 fak 1"(4 Lo
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EXHIBIT A
SITE PLAN
/
MEL'S LUMBER
PORTIONS OF THE SE1/4 NE1/4, SEC. 13, T21N, R4E, W.M., crry OF AUBURN, WASHINCON
20' ALLEY
-----------------------
31112.-E --2SLAWE
OWING POYMI POLE
LUIANKRE TO BE RalOVEO.e.
COMM OF 14£11
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10 BE USED
• STREE1
DOM POLE
WH LUAINAIRE 10 lam
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(I1-23-07)
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GLOBAL CORPORATE $ERVICE$ ����
2106 Paclfic Avenue, Suite 400
Jenn Robinsondahna Tacoma,WA 98402
Real Estate Malyst
253 792 64'I7 Tel
CBRE,Inc. 253 792 6428 Fax
MuWCare Health System Jenn.RObinscn-Jahns(�multicare.org
www.ebre.com
2/8/2013 �C�1�B� /��
C'�J d
Kevin Snyder.
CiryofAuburn FEB 13 2013
Departmmt of Planning and Development
25 Weat Main Street, 1621 CITY OF AUBURN
Auburn,WA 98001 PLANNING &DEVELOPMEPIT
Re: BID 3053-01. Mel's Lamber Parldng
Auburn,WA 98001
Dear Mr. Snyder,
Please 5nd enclosed one original fully executed Consent to Assignment betwcea MulGCaze Hwlth System and
the Ciry of Aubum for your records.
To facilitate the prompt processing of all corravpondence,please include our Building ID(i.e. BID 1097-01)on
all documents. In addition, in accadance with fhe I.ease,please forwazd your cmrespondence to the following
address:
CBRE, Inc BID 3053-01
c/o Property Management
2106 Pacific Avenue,Suite 400
Tacoma,W A 98402
We look forward to continuing our rolationship as your teoant and worldng with you during the term of this lease.
For all Tenant and Property Managemrnt iavues,please contact the Property Management departmrnt at 253-792-
6400.
Sincaely.
C��s
Jenn Robinson-Jahns
Real Esqte Analyst
Enclosures(1)
cc: File
-. - --- ---- - - - - - - - - - - -
CONSENT'TO ASSIGNMENT
Effective May 1, 2012, MultiCaze Health System, a Washington nonprofit corporation
("MultiCare") entered into an asset purchase agreement with Auburn Regional Medical Center,
Inc., a Washington for-profit corporation ("ARMC") to acquire certain hospital, clinic and
related assets of ARMC. Upon the closing of the transaction, MultiCare will own and operate
the purchased assets under the d/b/a MultiCaze Aubum Regional Medical Center. Subject to
favorable regulatory review and satisfaction of certaiu other conditions, MultiCaze and ARMC
currenfly anticipate the closing of the asset sale (herein "Closing") to occur in the fourkh quarter
of 2012.
City of Aubum("Contracting Pazty") and ARMC (or an af'filiate of ARMC)are parties to
that certain Mel's Pazking Lot Lease Agreement, dated Mazch 11, 2010 ("Lease"), a copy of
which is attached hereto. Pursuant to this Consent to Assignment, Contracting Pariy agrees that
all of the post-Closing rights and obligadons of ARMC (or ARMC's affiliate) under the Lease
sk�all be assigned to and assumed by MultiCate, effective as of Closing.
Pursuant to this Consent to Assignment, MultiCaze assumes all of the obligations of
ARMC (or ARMC's affiliate) under the Lease arising on or after Closing. To the extent the
ttansaction fails to close for any reason,this Consent to Assignment shall be null and void and of
no further effect.
DATED as of and effective this ��day of��2012.
Contracting Party
City of Auburn
a Washington municipal corporation
By�
Its:
MULTIC HEAL �
By
Its: