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HomeMy WebLinkAboutAuburn Resource Center Term Sheet The Auburn Food Bank AUBURN RESOURCE CENTER TERM SHEET July 16, 2020 RE: Term sheet for the Sublease of Suite 2802 in the Auburn Resource Center. Dear Auburn Food Bank&Debbie Christian, This term sheet outlines the mutually negotiated business points and terms that will become the basis of the formal Sublease Agreement between the City of Auburn(CITY)as Lessee and The Auburn Food Bank(AFB)as Sublessee. SUBLEASED PREMISES: 2802 Auburn Way North,Auburn,WA 98002 Estimated 6,647 square feet of leasable area +between the hours of 7:30am and 6:00pm those non-handicapped parking stalls depicted in the attached "Auburn Food Bank Parking"document. RENT SCHEDULE: $6.00/ft/yr Delivery through January 31,202.2 TBD, But not less than$6.30/ft/yr and not more than$12.61/ft/yr February 1, 2022—January 31, 2023 TBD, But not less than$6.46/ft/yr and not more than$12.92/ft/yr February 1,2023—January 31, 2024 TBD, But not less than$6.62/ft/yr and not more than$13.25/ft/yr February 1, 2024—January 31, 2025 Rental Rate AFB shall propose to the CITY a rental rate to pay for the upcoming term no Determination for later than October 31,of the current year.The City will then have up to 30 February 1,2022 days following receipt of AFB proposal to either accept or deny the AFB January 31,2023, proposal. If the CITY denies the AFB proposal the CITY shall counter propose February 1,2023- an acceptable rental rate. Each Party shall diligently work with each other January 31,2024& to determine an acceptable rental rate to both parties. In no event shall the February 1,2024— terms agreed upon rental rate be less than, nor greater than the rate January 31,2025 schedule as shown above. If the parties cannot agree on a new rate by January 1 of the new term,the rate shall be the"not less than" rate for that year. RENT CONCESSIONS: $0(zero)/ft/yr Delivery-two months $3.00/ft/yr months 3—5 $5.00/ft/yr months 6—9 Beginning the 10th month the rent shall be equal to the rent schedule If delivery of the Premise takes place on a date other than the 15t of the month rent and rent concessions shall be prorated based on delivery date RENTAL PAYMENTS: Due the 15t of the month with a grace period through the 10th of every month. V3 Drafted 7-16'-20 by Josh Arndt together with AFB The Auburn Food Bank AUBURN RESOURCE CENTER TERM SHEET SUBLEASE TERM/ The Sublease term will be from Sublease commencement through January COMMENCEMENT& 31, 2025. RENEWAL OPTIONS: Commencement of the Sublease will be that date both Parties agree that the City will deliver the Premises to AFB and which date will be no later than 30 days following execution of the Sublease by both Parties. The City will deliver and AFB agrees to accept the Premises in its"as-is where-is" condition.AFB acknowledges that the City makes no representations as to the condition or working order of any system or otherwise within or surrounding the Premises. Renewal Options:Three(3) Five(5)year renewal term options at tenant's option or otherwise mirrored with the City of Auburn Master Lease Agreement. TENANT AFB is responsible for the sole cost and expense of any and all tenant IMPROVEMENTS: improvements AFB wishes to install.Any"work"that AFB wishes to do as part of its tenant improvements at any point during this sublease must comply with those procedures and dates described in the `Tenant Work Letter"which is part of the City's lease will be made a part of the Sublease Agreement. MAINTENANCE AFB: Non-structural interior walls/plumbing/electrical,fixtures,flooring, RESPONSIBILITIES: improvements, interior equipment, plate glass,chillers,trade fixtures and janitorial, HVAC on call service City or City's Landlord: Foundation,exterior walkways&walls, roof,the building's mechanical,electrical, and plumbing systems, quarterly HVAC service, pylon sign & parking lot SIGNANGE: AFB will be assigned a single slot by the City for signage on the pylon sign located along Auburn Way North. AFB may install at their own cost and expense, up to two (2)façade signs above their Premises,one which faces Auburn Way North and one that faces 28th Street. All AFB signage must incorporate design standards set forth by the City as part of the Auburn Resource Center and be approved in writing by the City as AFB's Landlord in this Agreement.All signage must also subject to all provisions and requirements set forth in ACC 18.56. UTILITIES: AFB will only be responsible for those public and private utilities that are individually metered for the sole use of Sublessee Premises,and which AFB agrees to have established accounts for prior to Sublease commencement. V3 Drafted 7-16-20 by Josh Arndt together with AFB The Auburn Food Bank AUBURN RESOURCE CENTER TERM SHEET If at a future date other utilities servicing the Premises become separately metered,AFB agrees to establish accounts for those utilities immediately. USES: Sublessee will operate a Food Bank serving the Auburn and surrounding populations. Cooking, cooking demonstrations,culinary workforce training and serving of meals is also permissible. ASSIGNMENT OR AFB shall not have the right to assign or sublease any rights granted or SUBLEASE: permissible under this Sublease Agreement. This term sheet is not binding upon either party, rather a summary of terms mutually negotiated between the Parties which will become the business points set forth in a formal sublease agreement. By executing this term sheet each party represents that they understand and desire to enter into a formal sublease agreement based in substantial conformity of said terms. Respectfully, Josh Arndt Property Analyst, Economic Development City of Auburn Acceptance of Terms CITY OF AUBURN: AUBURN FOOD BANK: ` By: ►` - By: .. - � ♦ i Title: 1, ►- Title: ,_a..‘',C.Ze2,Vii;-e (aiVL.sfelhd.' Date: °21 ` Date: --- 7/ �c V3 Drafted 7-16-20 by Josh Arndt together with AFB