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Home My WebLink About5453 RESOLUTION NO. 5 4 5 3 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, AUTHORIZING THE MAYOR TO NEGOTIATE AND EXECUTE AGREEMENTS RELATED TO THE AUBURN CONSOLIDATED RESOURCE CENTER WHEREAS, for the last decade City staff and elected officials have had a variety of conversations about the goal of establishing a consolidated hub where disadvantaged members of our community could more efficiently obtain a variety of community, social and human services; and, WHEREAS, the City has an opportunity to enter into a long-term lease of approximately 23,000 square feet of existing building space located at 2802-2818 Auburn Way North; and, WHEREAS, there are remaining funds in the 2019-2020 budget available for this project. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, RESOLVES as follows: Section 1. The Council approves of the "Auburn Consolidated Resource Center" (Center) concept. The purpose of the center is to co-locate a variety of community, social, and human services providers to improve coordination among them, and to make it easier to access those services. Section 2. The Mayor is authorized to negotiate and execute a lease agreement between the City of Auburn and Benson W. and Kaye M Liu in substantial conformity with the Letter of Intent attached as Exhibit A. Resolution No. 5453 DATE Page 1 of 2 Rev.2019 Section 3. The Mayor is authorized to negotiate and execute sublease agreements with tenants. Section 4. The Mayor is authorized to negotiate and execute sponsorship agreements with funding partners. Section 5. The Mayor is authorized to implement those administrative procedures necessary to carry out the directives of this legislation. Section 6. This Resolution will take effect and be in full force on passage and signatures. Dated and Signed: CITY OF AUBURN • .► d . ,ANCY '�� US, MAYO' ATTEST: APP MAS TO FORM: Shawn Campbell, MMC, City Clerk Steven. G , Attorney Resolution No. 5453 DATE Page 2 of 2 Rev.2019 City of Auburn AUBURN SHOPS LETTER OF INTENT August 20th, 2019 City of Auburn C/O Josh Arndt VIA Email RE: Tenant's July 2,2019 Counter proposal Landlord's Counter offer Letter of Intent to Lease roughly 23,000/ft of commercial space in the Auburn Shops Dear Josh, This Letter of Intent(LOl)is being sent as a result of The City of Auburn's interest in leasing the vacant +/-23,000/ft of commercial space in the Auburn Shops building and subsequent negotiations. Below are the primary business points that are mutually acceptable to the Landlord and the City as a result of these negotiations. PREMISES: 2802—2818 Auburn Way North,Auburn,WA 98002 Estimated 23,000 square feet of leasable area 4- Those Those non-handicapped parking stalls located right outside the tenant space and the parking stalls located along the south property line east of the south vehicle ingress/egress drive. (33 total parking stalls, (24)non-HC stalls outside of tenant's spaces, (9)non-HC stalls along south property line). We request an onsite meeting to walk the desired parking area requested. We also want to confirm the intended uses for these parking stalls. Currently the center is"cross parked"with Non-exclusive stalls. We are open to the possibility of exclusive parking, depending on the location and use of the stalls. RENT: $ 12.00/ft/year(base rent)+NNN ($7.70/ft 2019 estimate) RENT CONCESSIONS: 2802: no base rent first 5 mos(est.6,647ft) 2806—2818: no base rent first 3 mos(est. 15,660ft) The Landlord will grant the requested free rent and the Tenant is taking the space in its"As Is"condition. The Tenant will pay Triple Nets during the Rent Concession period. RENTAL PAYMENTS: monthly RENTAL ESCALATIONS Base rent will increase annually on the anniversary date of the lease by 2 Yz%,with the first escalation effective Jan 1,2021 INITIAL TERM/ Initial Term: Five years from lease commencement RENEWAL OPTIONS: Renewal Options:Three(3)Five(5)year renewal term options at tenant's option. The Tenant must provide the Landlord with written notice of their intentions to renew their lease,at least One Hundred and Eighty(180) prior to the expiration of the existing lease term. Page 1 of 4 City of Auburn AUBURN SHOPS LETTER OF INTENT APPROPRIATIONS: If the City Council fails to appropriate money for this project,the tenant will have the right to terminate the lease with 180 days written notice should funding for this lease cease to exist.Tenant shall pay a cancellation penalty equal to one year's total rent LEASE The lease to commence upon delivery by Landlord to Tenant of the COMMENCEMENT/ premises. Both Parties agree to make reasonable efforts to see lease DELIVERY: commencement and delivery of the premises within 30 days following Auburn City Council approval. The Tenant will notify the Landlord at least ten (10)days prior to the date of the Council meeting when the proposed terms will be submitted for approval. In no event will the terms be submitted to Council for approval later than the September 16,2019 City Council Meeting or these terms expire. MAINTENANCE Landlord: Foundation,exterior walkways&walls, roof,quarterly HVAC RESPONSIBILITIES: service, pylon sign&parking lot. The costs for some or all of these maintenance items will be billed back to the Tenant in the Triple Net charges. Tenant: Interior walls/plumbing/electrical,fixtures,flooring,trade fixtures, per terms specified in the lease. SIGNANGE: Tenant use of all open space on pylon sign minus single slot for each of the existing 3 tenants.Tenant responsible for cost and installation. Plus,space for facade sign above each store front. The Tenant will submit sign designs for all signage to the Landlord for review and approval. Landlord will have Ten(10)business days from delivery by Tenant to approve or disapprove Tenants signage. If Tenant does not receive notification of disapproval from Landlord by 5:00PM on the tenth day the Tenant's signage submittal to Landlord will be deemed approved. All signage will be subject to all applicable codes. UTILITIES: Tenant will establish private accounts for all public and private utilities that are individually metered for the sole use of tenant's premises.Tenant will be responsible for a pro-rata share of all public and private utilities that are on a master meter/account. Tenant will have 10 business days from delivery to review and approve/disapprove of utility information provided by landlord. Landlord will provide the following utility information not less than 10 calendar days before the City's scheduled consideration of this term sheet: breakdown on those utilities that are separately metered vs on a master meter.The Landlord will provide the names of the utility providers, but no past bills as the space has been unoccupied. USES: Social Service related activities including, but not limited to: Food Bank, Day Page 2 of 4 City of Auburn AUBURN SHOPS LETTER OF INTENT Shelter, Night Shelter,Workforce Training,Community Court, Police Substation. The City will maintain a Police Substation facility on the premises as part of its tenancy, but are under no staffing obligations for the Substation. A constant police presence is not required, however,the space and parking area will have supervision during the lease term and operation of the facilities. SUBLEASE: The tenant will have the right to sublease some or all of the tenant's premises to other service providers as tenant deems necessary with written approval of the landlord.Landlord will have Ten (10)business days from the request by the Tenant to sublease all or a portion of the premises to approve or disapprove of the Subtenant. If no response of approval or disapproval is received by 5:00PM on the tenth day then Landlord is deemed to have approved the Subtenant. FIRST RIGHT OF If at any point during the tenancy by the City of Auburn,the Landlord REFUSAL receives an offer to purchase the Auburn Shops Center,the City shall have a Thirty(30)day First Right of Refusal to match the first solicited or unsolicited offer for the sale of the property.This will be a ONE TIME RIGHT and will apply to the first bona fide offer received only. Should the City elect not to exercise their First Right of Refusal,their right shall terminate and the Landlord may sell the building to any third party they chose with no further obligation to the Tenant/City of Auburn. CITY COUNCIL: This lease and any of its terms are subject to the approval and/or ratification of the Auburn City Council, no later than the September 16, 2019 scheduled Council Meeting. This Letter of Intent is not binding upon either party, rather a summary of terms City of Auburn staff can present to City Council for approval. If you are in agreement with the above terms, please execute this letter and return an executed copy to me so the City may proceed with the Council process. Respectfully, Mr. Benson and Mrs. Kaye Liu [SIGNATURES ON THE FOLLOWING PAGE] Page 3 of 4 City of Auburn AUBURN SHOPS LETTER OF INTENT Acceptance of Terms LANDLORCITY OF AUBURN: � �. ,g� e�t l L JNMiKM3 By: 1- `lj BY: A Title: /&14/} Title: M0.40 Date: 9 / 0 /Z- l`1Date: tct Liu-City of Auburn—Landlord Counter Offer—Auburn Shops—8-20-19 Clean Doc Page 4 of 4