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HomeMy WebLinkAboutMultiCulturalBusiness Incubator OFFICE SPACE LEASE AGREEMENT Lease agreement by and between: LESSOR: City of Auburn, doing business at 25 West Main Street, Auburn, Washington, hereinafter "LESSOR", and LESSEES: Multi Cultural Business Incubator (MBI), doin~ business at 910 9th Street Auburn, WA, Washington, hereinafter "LESSEES." IN AND FOR CONSIDERATION of the mutual benefits to each party, subject to the terms and conditions below, LESSOR leases: to LESSEE, and LESSEE leases from LESSOR, (the premises I a portion of the premises) located at 1 005 12'h Street SE, Auburn, King County, Washington. TERMS AND CONDITIONS 1. Term. This lease shall begin May 1 2005 and shall run for one year until April 30, 2006. This lease shall automatically reneiW each year unless terminated by either party by 30 days written notice. This lease may be terminated by either party upon 30 days written notice. 2. Rent. Rent for the premises shall be $175 per month. Rent shall be payable in advance, on the first day of each successive COMMERCIAL LEASE AGREEMENT - 1 A3.\' month. All rent shall be paid to LESSOR at 910 9th Street SE, Auburn, Washington, 98002. There shall be a $25.00 late fee for any rent not paid within fifteen days of its due date. This late fee shall be due and payable at the same time as the rent is paid. 3. Security Deposit. LESSEES shall deposit with LESSOR the sum of $175.00 as security for LESSEE'S faithful pe rformance of all terms and conditions of this lease agreement. Such performance shall include, for example, paying the rent and leaving the premises reasonably clean and undamaged at the end of this agreement. The security deposit shall be paid upon the execution of this agreement. Then, upon the termination of this agreement, if the LESSEE is in full compliance with all of the terms and conditions of this agreement, the security deposit shall be returned to them. If, however, LESSEE fails to leave the premises reasonably clean and undamaged, or if they owe unpaid rent, LESSOR shall apply the deposit to any cleaning or repair costs incurred, and to any unpaid rent. The remainder of the deposit, if any, shall be refunded to LESSEE. If the costs or rent exceed the amount of the deposit, LESSEE shall pay excess immediately upon notification by LESSOR. If COMMERCIAL LEASE AGREEMENT - 2 LESSEE fails to pay it immediately upon notification it is understcJod and agreed that LESSOR may initiate legal proceedings to collect it. 4. Utilities. LESSEE shall not be responsible for all utilitiE¡s furnished to the premises during the term of this lease. 5. Possession/Use. LESSOR shall use the property only for the direct purpose of operating the MBI. LESSEE shall comply with all federal, State, and local laws, rules, ordinances, and codes affecting their use of the premises. 6. Assianment and Sublease. LESSEE shall not assign this lease or sublet the premises without LESSOR's written consent. 7. RemodelinQ and Alterations. . The LESSEE may not remodel or refurbish the premises in any way without receiving the written consent of the LESSOR. The LESSEE may install such cabinets, shelves, counters, and desks as may be reasonably necessary for their use of the premises. The installation shall be done in a manner that minimizes any damage to the premises. Upon termination of this lease, they shall remove all the cabinets, shelves, counters, and desks from the premises, and they shall promptly repair any nail or screw holes or other damage to the premises resulting from COMMERCIAL LEASE AGREEMENT - 3 the installation and removal of the same. All such repairs shall be of first-class workmanship. LESSEE may also place a sign on the exterior of the premises identifying their use of the premises, provided, upon the expiration of this lease, they shall remove the sign and repair any damage caused by removal of the sign; and provided further, the sign must be compatible with the general ambiance and character of the building in which the premises are located. Should LESSEE violate any provisions of this section, it is understood and agreed that LESSOR shall have the right to terminate this lease, effective immediately, without notice. 8. Condition of Premises. LESSEE has inspected the premises and any equipment, appliances, and fixtures which are included élS part of the premises, and accept them in their present condition. LESSEE acknowledges that LESSOR has made no representation or warranty concerning the condition of the premises, appliances, and fixtures. LESSEE agrees to maintain the interior of the leased premises in their present condition, less normal wear and tear associated with their proper use. COMMERCIAL LEASE AGREEMENT - 4 9. Indemnification / Hold Harmless. LESSEE shall defend, indemnify, and hold harmless the LESSOR, 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 LESSOR. All personal property placed on the premises by LESSEE shall be at their risk. 10. Insurance. The LESSEE shall procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damage to property, which may arise from or in connection with the LESSEE's 0 peration and use of the leased premises. 11. Minimum Scope of Insurance. insurance of the types described below: (a) Commercial General Liability insurance shall be written on LESSEE shall obtain Insurance Services Office (ISO) occurrence form CG 00 01 and shall cover premises and contractual liability. The LESSOR shall be named as an insured on LESSEE's COMMERCIAL LEASE AGREEMENT - 5 Commercial General Liability insurance policy using ISO Additional Insured-Managers or Lessors of Premises Form CG 20 11 or a substitute endorsement providing equivalent coverage. (b) Property insurance shall be written on an all risk basis. 12. Minimum Amounts of Insurance. LESSEE shall m:3intain the following insurance limits: (a) Commercial General Liability insurance shall be written with limits no less than $1,000,000 each occurrence, $2,000,000 general aggregate. (b) Property insurance shall be written covering the full value of LESSEE's property and improvements with no coinsurance provisions. 13. Other Insurance Provisions. The insurance policies are to contain, or be endorsed to contain, the following provisions for Commercial General Liability insurance: (a) The LESSEE's insurance coverage shall be primary insurance as respect the LESSOR. Any Insurance,. self- insurance, or insurance pool coverage maintained by the COMMERCIAL LEASE AGREEMENT - 6 LESSOR shall be excess of the LESSEE's insurance and shall not contribute with it. (b) The LESSEE's insurance shall be endorsed to state that coverage shall not be cancelled by either party, ,except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the LESSOR. 14. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best rating of not less than A:VII. 15. Verification of Coverage. 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. 16. Waiver of Subrogation. LESSEE and LESSOR hereby release and discharge each other from all claims, losses and lialbilities 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. 17. LESSOR's Property Insuran ceo LESSOR shall purchase and maintain during the term of the lease all-risk property insurance COMMERCIAL LEASE AGREEMENT - 7 covering the Building for their full replacement value without any coinsurance provisions. 18. DamaQe or Destruction of Premises. In the event the premises are substantially damaged or totally destroyed by a casualty not caused by LESSEE'S willful or neglig ent act, this lease shall be immediately terminable at LESSOR'S election. Upon such termination, all rent shall be prorated to the date of termination, with LESSEE receiving a refund from LESSOR for any rent attributable to the period following the date of termination. If, however, the premises are only partially damaged as a result of such casualty, LESSOR shall repair the same. Until the repairs are completed, rent shall abate in proportion to any loss of use of the premises by LESSEE. 11. Default/Re-entrv. Time is of the essence of this lease. If LESSEE defaults in any material term or condition or term of this lease, and if the default is not corrected within 30 days after written notice of the default, LESSOR may cancel this lease and re-enter the premises. Service of the notice of default shall be in person or by certified mail, return receipt requested, directed to LESSEE'S las t known address. COMMERCIAL LEASE AGREEMENT - 8 19. Miscellaneous. (a) LESSOR or its agent may at reasonable times and upon reasonable notice enter the premises to insure compliance with this lease. This right to enter for inspection purposes shall not be construed as a duty to inspect. (b) This agreement shall be binding upon and run to the boenefit of the heirs, personal representatives, and assigns of each party, provided, LESSEE shall not sublet the premises or assign this agreement without LESSOR's written consent. (c) Should it become necessary to replace any appliances, fixtures or equipment included as part of the premises which, as a result of ordinary use and wear, become unusable and cannot be reasonably repaired, LESSOR shall have no obligation to replace them. If LESSEE replaces them, they shall belong to LESSOR and they shall remain on the premises upon the termination of this lease. (d) If either party brings a suit against the other to enforce, any rights or obligations contained in this lease, the losing party shall pay the prevailing party's attorney's fees and costs in a reasonable sum. (e) This lease agreement may be modified by the parties at any time, but only upon the written agreement of the parties. COMMERCIAL LEASE AGREEMENT - 9 (f) Except as may be hereafter modified, this agreement contains all agreements of the parties respecting the matters contained in this agreement. DA TED: '--n1 ~ £> ,2005. LESS CITY By: Attest: eter B. Lewis, Mayor ¡[þ~ [)~k,-~/ , Danielle Daskam, City Clerk LESSOR: '~"Y 1 ~:/ 1/ /' ;~. I j~£.....--Z/{....,:/ (,. ~ /YJ'? ) /é, '/"'/-......7' By: / I' /rvty jl, 4.-u jXu-/!<7 Title: C L!=- ¿:J COMMERCIAL LEASE AGREEMENT - 10 :. ~ --. /?Ø~-