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HomeMy WebLinkAbout4322RESOLUTION NO.4 3 2 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN OFFICE SPACE LEASE AGREEMENT BETWEEN CITY OF AUBURN AND GREEN RIVER MUSIC, INC. WHEREAS, the City of Auburn is the owner of certain real property located at 108 South Division in Auburn, Washington; and WHEREAS, Green River Music, Inc. desires to enter into a lease with the City for 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 and the Auburn City Clerk are hereby authorized to execute an Office Space Lease Agreement between the City of Auburn and Green River Music, Inc. which agreement shall be in substantial conformity with the agreement attached hereto, marked 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. 4322 February 27, 2008 Page 1 of 2 Dated and Signed this 4- 4-41 day of 2008. CITY O B L r PETER B. LEWIS MAYOR ATTEST: Danielle E. Daskam, City Clerk APPROVED AS TO FORM: iel B. Held-,City Attorn Resolution No. 4322 February 27, 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: Green River Music, Inc, doing business at 108 South Division, Suite D, 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, being Suite D of the property located at 108 South Division Auburn, King County, Washington, depicted in EXHIBIT A, attached hereto and incorporated by reference, and 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. TERMS AND CONDITIONS 1. Term. This lease shall be effective on the date this document is signed by both parties and shall run for one year or until February 28, 2009, which ever is less. This lease shall have one, one year automatic Green River Music, Inc. 1 of 11 3/11/2008 renewal option. Either party may terminate this lease for any reason with 90 days written notice from the terminating Party to the other Party. 2. Rent. Rent for the premises shall be seven hundred eighty-two dollars and no/cents ($782.00) per month. Rent shall be payable in advance, on the firth (5t") day of each successive month. Said payment being six hundred ninety-three and 021100 cents ($693.02) in rent and eighty-eight and 981100 cents ($88.98) in leasehold excise 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 premises 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 leave the premises reasonably clean and undamaged, or if they owe Green River Music, Inc. 2 of 11 3/11/2008 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 shall have the use of common area restrooms. 5. Parking. LESSEE is assigned two parking space(s). 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 owner's expense. LESSEE may only park a vehicle that is registered in LESSEE'S name. 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 premises during the term of this lease. LESSEE shall pay for all electricity expenses supplied to the premises including, but not limited to lighting, heating, and air conditioning during the term of this lease. All utilities shall be paid before delinquency. 7. Possession/Use. LESSEE shall use the property only for the Green River Music, Inc. 3 of 11 3/11/2008 direct purpose of operating the Green River Music store and shall comply with all federal, State, and local laws, rules, ordinances, and codes affecting their use of the premises. 8. Assignment and Sublease. LESSEE shall not assign this lease or sublet the premises without LESSOR'S written consent. 9. Remodeling 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 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. Green River Music, Inc. 4 of 11 3/11/2008 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 Premises. LESSEE has inspected the premises and any equipment, appliances, and fixtures which are included as 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. 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 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. Green River Music, Inc. 5 of 11 3/1112008 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 premises. 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 premises 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 LESSORS of Premises Form CG 20 11 or a substitute endorsement providing equivalent coverage. 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 general aggregate. (b) Property insurance shall be written covering the full value of Green River Music, Inc. 6 of 11 311112008 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 ANII 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 endorsement, evidencing the insurance requirements of the LESSEE. 18. Waiver of Subrogation. LESSEE and LESSOR hereby Green River Music, Inc. 7 of 11 3/11/2008 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 premises or said building. This release shall apply only to the extent that such claim, loss or liability is covered by insurance. 19. LESSOR'S Property Insurance. LESSOR shall purchase and maintain during the term of the lease all-risk property insurance covering the Building for their full replacement value without any coinsurance provisions. 20. Damage 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 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 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. 21. 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 Green River Music, Inc. 8 of 11 3/11/2008 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 last known address. 22. 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 benefit 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. Green River Music, Inc. 9 of 11 3/11/2008 (e) This lease agreement may be modified by the parties at any time, but only upon the written agreement of the parties. (f) Except as may be hereafter modified, this agreement contains all agreements of the parties respecting the matters contained in this agreement. DATED: i AT ED:'? 17 , 2008. LE; CI1 By: Attest: ?`?0 k4 Danielle Daskam, City Clerk as Daniel 8--Reid, City Attkmey LESSEE: By: Title: Green River Music, Inc. 10 of 11 3/11/2008 Peter B. Lewis, Mayor Exhibit A Green River Music, Inc. 11 of 11 3/11/2008 IoB S. DivisioN S-r. Sarre D