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HomeMy WebLinkAbout4311RESOLUTION NO. 4 3 1 1 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, AUTHORIZING THE MAYOR TO EXECUTE AN OFFICE SPACE LEASE AGREEMENT WITH THE AUBURN AREA CHAMBER OF COMMERCE WHEREAS, the City of Auburn is the owner of certain real property located at 108 South Division in Auburn, Washington, legally described in Exhibit A; and WHEREAS, the Auburn Area Chamber of Commerce wishes to lease a suite within said property at a cost 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 is authorized to execute an office space lease agreement in substantial conformity with the Lease Agreement attached hereto as "Exhibit A" and incorporated herein by 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. Section 3. This resolution shall be in full force and effect upon passage and signatures hereon. Resolution No. 4311 February 8, 2008 Page 1 of 2 Dated and Signed this,3v day of ?)1i),vc b- , 2008. CIT UR 1? PETER B. LEWIS MAYOR ATTEST: Danielle E. Daskam, City Clerk APP OVE TO FORM: Daniel B. Heid, City Attorn Resolution No. 4311 February 8, 2008 Page 2 of 2 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 LESSEE: Auburn Area Chamber of Commerce, doing business at 108 South Division, Suite B, Auburn, WA, Washington, hereinafter "LESSEES." LESSOR and LESSEE collectively hereafter known as the "Parties" and individually known as "Party." 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 Suite B of the property located at 108 South Division Auburn, King County, Washington, legally described as follows: LOTS 3 AND 4, BLOCK 6, TOWN OF SLAUGHTER, ACCORDING TO THE PLAT THEREOF RECORDED IN VOLUME 2 OF PLATS, PAGE 56, IN KING COUNTY, WASHINGTON. Collectively hereafter known as the "Premise." TERMS AND CONDITIONS 1. Term. The term of this lease shall be for one year effective on the date this document is signed by both Parties and shall expire on Auburn Area Chamber of Commerce 1 of 10 31312006 February 28, 2009. The Parties shall have a one year option to renew. Either party may terminate this Lease on ninety (90) days' prior written notice from the terminating Party to the other Party. 2. Rent. The LESSEE shall pay the LESSOR, the amount of one thousand five hundred dollars and no%ents ($1.500.00) on or before the fifth (5th) day of each month during the term of this lease. Said payment being one thousand three hundred and seven dollars and 251100 cents ($1,307.25) in rent and one hundred and ninety two dollars and 751100 cents ($192.75) in leasehold tax. All rent shall be paid to LESSOR at 25 West Main Street, Auburn, Washington, 98001. There shall be a $50.00 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. LESSEE previously paid a security deposit with the previous LESSOR in the sum of One Thousand Two Hundred Dollars and no/cents ($1,200.00) as security for LESSEE'S faithful performance of all terms and conditions of this lease agreement. Such performance shall include, for example, paying the rent and leaving the Premise reasonably clean and undamaged at the end of this agreement. 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 Auburn Area Chamber of Commerce 2 of 10 313/2008 leave the Premise 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 LESSEE fails to pay it immediately upon notification it is understood and agreed that LESSOR may initiate legal proceedings to collect it. 4. Common Areas. LESSEE is responsible for the cost of cleaning common area hallway and restrooms. LESSOR is responsible for the cost of supplies for common area restrooms. 5. Parking. LESSEE is assigned seven (7) parking spaces. LESSEE will place a City parking permit in the driver's side of the rear window of vehicle. All vehicles without a City parking permit are subject to ticketing or towing at the vehicle owner's expense. LESSEE may not assign, sublet, or allow any other person to use LESSEE'S assigned space(s). 6. Utilities. LESSOR shall pay for all water and garbage service supplied to the Premise during the term of this lease. LESSEE shall pay for all electricity expenses supplied to the Premise including, but not limited to lighting, heating, and air conditioning during the term of this Auburn Area Chamber of Commerce 3 of 10 3/312008 lease. All utilities shall be paid before delinquency. 7. Possession/Use. LESSEE shall use the Premise only for the direct purpose of operating the Auburn Area Chamber of Commerce and shall comply with all federal, State, and local laws, rules, ordinances, and codes affecting their use of the Premise. 8. Assignment and Sublease. LESSEE shall not assign this lease or sublet the Premise without LESSOR'S written consent. 9. Remodeling and Alterations. The LESSEE may not remodel or refurbish the Premise 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 Premise. The installation shall be done in a manner that minimizes any damage to the Premise. Upon termination of this lease, they shall remove all the cabinets, shelves, counters, and desks from the Premise, and they shall promptly repair any nail or screw holes or other damage to the Premise resulting from 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 Premise identifying their use of the Premise, 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 Auburn Area Chamber of Commerce 4 of 10 31312008 with the general ambiance and character of the building in which the Premise is 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. 10. Condition of Premise. LESSEE has inspected the Premise and any equipment, appliances, and fixtures which are included as part of the Premise, and accept them in their present condition. LESSEE acknowledges that LESSOR has made no representation or warranty concerning the condition of the Premise, appliances, and fixtures. LESSEE agrees to maintain the interior of the leased Premise in its present condition, less normal wear and tear associated with their proper use. 11. 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 Premise, 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 Premise, except only such injury or damage as shall have been occasioned by the Auburn Area Chamber of Commerce 5 of 10 31312008 sole negligence of the LESSOR. All personal property placed on the Premise by LESSEE shall be at their risk. 12. 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 operation and use of the leased Premise. 13. Minimum Scope of Insurance. LESSEE shall obtain insurance of the types described below: (a) Commercial General Liability insurance shall be written on Insurance Services Office (ISO) occurrence form CG 00 01 and shall cover Premise and contractual liability. The LESSOR shall be named as an insured on LESSEE'S Commercial General Liability insurance policy using ISO Additional Insured-Managers or LESSOR'S of Premise Form CG 20 11 or a substitute endorsement providing equivalent coverage. (b) Property insurance shall be written on an all risk basis. 14. Minimum Amounts of Insurance. LESSEE shall maintain 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 Auburn Area Chamber of Commerce 6 of 10 31312008 general aggregate. (b) Property insurance shall be written covering the full value of LESSEE'S property and improvements with no coinsurance provisions. 15. 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 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. 16. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best rating of not less than A:VII. 17. 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 Auburn Area Chamber of Commerce 7 of 10 31312008 endorsement, evidencing the insurance requirements of the LESSEE. 18. Waiver of Subroaation. LESSEE and LESSOR 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 Premise or said building. This release shall apply only to the extent that such claim, loss or liability is covered by insurance. 19. Damage or Destruction of Premise. In the event the Premise is substantially damaged or totally destroyed by a casualty not caused by LESSEE'S willful or negligent 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 Premise is only partially damaged as a result of such casualty, LESSOR may repair the same. Until the repairs are completed, rent shall abate in proportion to any loss of use of the Premise by LESSEE. 20. Default/Re-entry. 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 Premise. Service of the notice of default shall be in person or by certified mail, return receipt Auburn Area Chamber of Commerce 8 of 10 31312008 requested, directed to LESSEE'S last known address. 21. Miscellaneous. (a) LESSOR or its agent may at reasonable times and upon reasonable notice enter the Premise 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 benefit of the heirs, personal representatives, and assigns of each party, provided, LESSEE shall not sublet the Premise 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 Premise 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 Premise 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. Auburn Area Chamber of Commerce 9 of 10 31312008 (f) Except as may be hereafter modified, this agreement contains all agreements of the parties respecting the matters contained in this agreement. DATED: 'f 11 2008. LESSOR: CITY OF 1 By: Peter B. Lewis, Mayor n Attest:' i u1c2d? Danielle Daskam, City Clerk Appi By: LESSEE: C-j By: o c ^ Title: 1 t?-'c s: aC-I ?U^U Auburn Area Chamber of Commerce 10 of 10 31312008