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HomeMy WebLinkAbout4369RESOLUTION NO. 4 3 6 9 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A COMMERCIAL LEASE AGREEMENT BETWEEN THE CITY OF AUBURN AND THE BOYS AND GIRLS CLUB OF KING COUNTY (BGCKC) WHEREAS, the City of Auburn and the Girls and Boys Club of King County (BGCKC) wish to work together to create an Auburn Tween/Teen Center and Gymnasium for the benefit the youth of the City of Auburn; and WHEREAS, the City of Auburn owns and maintains the premises known as the Parks, Recreation and Arts Administration Building (PRAB) located at 911 9th Street Southeast in Auburn, Washington; and WHEREAS, in order to obtain grant funding, the BGCKC and City of Auburn have entered into a lease for the PRAB premises, as well as the gymnasium to be constructed a later date, subject to council approval. 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 commercial lease agreement between the City of Auburn and the Boys and Girls Club of King County which agreement shall be in substantial conformity with the Commercial Lease Agreement Resolution No. 4369 June 19, 2008 Page 1 of 2 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. Dated and Signed this /'? day of 4 '2008. C Y B PE ER B. L IS MAYOR ATTEST: Dan lle E. Daskam, City Clerk AP W)4eid,titovy : aney ResolutionNo. 4369 June 19, 2008 Page 2 of 2 . Exhibit A, Resolution No. 4369 COMMERCIAL LEASE AGREEMENT Lease agreement by and between: LESSOR: CITY OF AUBURN (COA), hereinafter "COX, and LESSEES: BOYS AND GIRLS CLUB OF KING COUNTY (BGCKC), hereinafter "BGCKC." WHEREAS, the parties to this agreement wish to work together to create an Auburn Tween/Teen Center and Gymnasium; and WHEREAS, the parties agree that an Auburn Tween/Teen Center and Gymnasium would greatly benefit the youth of the City of Auburn; and WHEREAS, a lease for the premises is nec Asary to begin to facilitate the formation of an Auburn Tween/Teen Center and Gymnasium (ATCG); NOW THEREFORE IN AND FOR CONSIDERATION of the mutual benefits to each party, subject to the terms and conditions below, COA leases to BGCKC, and BGCKC leases from COA, the premises known as the Parks, Recreation and Arts Administration Building (PRAB) and the gymnasium to be constructed at a later date, both to be located at 911 9i" Street SE, Auburn, King County, Washington. COMMERCIAL LEASE AGREEMENT June 24, 2008 Page 1 TERMS AND CONDITIONS 1. Term. This lease shall run from the latest date of signature affixed below for a term of 25 years unless earlier terminated or modified by mutual agreement or as otherwise provided herein. 2. Rent. Rent for the premises shall be $1.00 annually and payment of all agreed capital contributions as provided in a master agreement related to formation and construction of the ATCG to be negotiated subsequent to the execution of this lease. Upon occupancy of the premises, the rent shall be renegotiated to reflect the value of services provided by BGCKC and the value of the premises as they exist at that time. Failure to negotiate a master agreement shall result in this lease becoming null and void. Either party may declare a failure of negotiations at any time. Failure to comply with the terms of the master agreement related to payments of capital contributions shall constitute a failure to pay rent under the terms of this lease and shall be grounds for termination of the lease. 3. Security Deposit. Upon occupancy of the premises, BGCKC shall deposit with COA the sum of $1,000.00 as security for BGCKC'S faithful performance of all terms and conditions of this lease agreement. COMMERCIAL LEASE AGREEMENT June 24, 2008 Page 2 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 BGCKC is in full compliance with all of the terms and conditions of this agreement, the security deposit shall be returned to them. If, however, BGCKC fails to leave the premises reasonably clean and undamaged, or if they owe unpaid rent, COA 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 BGCKC. If the costs or rent exceed the amount of the deposit, BGCKC shall pay excess immediately upon notification by COA. If BGCKC fails to pay it immediately upon notification, it is understood and agreed that COA may initiate legal proceedings to collect it. 4. Utilities. COA shall be responsible for all utilities furnished to the premises during the term of this lease. 5. Possession/Use. BGCKC shall use the property only for the purpose of operating a Tween/Teen Center and activities consistent with the master agreement. BGCKC shall comply with all federal, state, and COMMERCIAL LEASE AGREEMENT June 24, 2008 Page 3 local laws, rules, ordinances, and codes affecting their use of the premises. 6. Assignment and Sublease. BGCKC shall not assign this lease or sublet the premises without COA's written consent. 7. Remodeling and Alterations. Remodeling and alterations shall be done consistent with the term of the master agreement and any Joint Operating Agreement (JOA) referenced therein. Should BGCKC violate any provisions of this section, it is understood and agreed that COA shall have the right to terminate this lease, effective immediately, without notice. 8. Condition of Premises. BGCKC 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. BGCKC acknowledges that COA has made no representation or warranty concerning the condition of the premises, appliances, and fixtures. BGCKC agrees to maintain the interior of the leased premises in their present condition, less normal wear and tear associated with their proper use. Interior and exterior maintenance of the premises shall be done in conformance with the provisions of the master agreement and JOA. COMMERCIAL LEASE AGREEMENT June 24, 2008 Page 4 9. Indemnification. All personal property placed on the premises by BGCKC shall be at their risk. BGCKC shall indemnify and save COA harmless from all loss and expenses resulting from claims for damage, injury or death arising out of their use of the premises, appliances, and fixtures. To this end, BGCKC shall at all times during the term of this lease, maintain insurance coverage insuring both themselves and the COA against liability for damage for any loss, injury, or death arising out of BGCKC'S use or lease of the premises, appliances, or fixtures in an amount at least equal to $1,000,000.00 per person/per occurrence. BGCKC shall provide COA with a certificate evidencing such coverage upon request. 10. Damage or Destruction of Premises. In the event the premises are substantially damaged or totally destroyed by a casualty not caused by BGCKC'S willful or negligent act, this lease shall be immediately terminable at CONS election. If, however, the premises are only partially damaged as a result of such casualty, COA shall repair the same. Until the repairs are completed, rent shall abate in proportion to any loss of use of the premises by BGCKC. 11. Default/Re-entry. Time is of the essence of this lease. If BGCKC defaults in any material term or condition or term of this lease, COMMERCIAL LEASE AGREEMENT June 24, 2008 Page 5 and if the default is not corrected within 30 days after written notice of the default, COA 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 BGCKC'S last known address. In the event that the BGCKC is unable to raise the funds necessary to fulfill the capital contributions as provided in the master agreement (to be negotiated and established subsequent to this agreement) this lease shall terminate and be considered null and void. 12. City Council Approvals. BGCKC acknowledges that this Lease does not bind the parties until (1) the Mayor of the City of Auburn executes the Agreement and (2) the Auburn City Council approves the Agreement. 13. Miscellaneous. (a) COA 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, BGCKC shall not sublet the premises or assign this agreement without COMMERCIAL LEASE AGREEMENT June 24, 2008 Page 6 COA'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, COA shall have no obligation to replace them. If BGCKC replaces them, they shall belong to COA 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. (f) Except as may be hereafter modified, this agreement contains all agreements of the parties respecting the matters contained in this agreement. DATED 0, 2008. 0 LESSQK1 CITY OF By: B. Lewis, Mayor COMMERCIAL LEASE AGREEMENT June 24, 2008 Page 7 Attest: Danielle Daskam, City Clerk App Daniel`?Ieid, City Att0Qey DATED r- , 2008. LESSEE: BOYS AND GIRLS CLUBS OF KING COUNTY ? c Daniel oh on Title: President/ CEO COMMERCIAL LEASE AGREEMENT June 24, 2008 Page 8