HomeMy WebLinkAboutPadilla Masonry Inc - Lease 1900 West A Street CITY OF PASCO LEASE AGREEMENT
THIS LEASE AGREEMENT is made and entered into this day of December,
2010 , by and between the City of Pasco , Washington, a Municipal Corporation, hereinafter
referred to as " City" , and Padilla Masonry, Inc . , a Washington Corporation, hereinafter referred
to as "Lessee . "
IN CONSIDERATION of the mutual covenants contained herein and other valuable
consideration, it is agreed as follow.
10 Premises . City does hereby lease to Lessee upon the following terms and
conditions that property located behind 1900 West A Street, Pasco , Franklin County,
Washington, consisting of open land of approximately 11 , 000 square feet, more particularly
described in Exhibit A attached hereto and incorporated herein by this reference, hereinafter
referred to as "Premises . "
2 . Term. The term of this Lease shall be three (3 ) years commencing on the 1St day
of January, 2011 , and ending on the 31St day of December, 2013 . The Parties may agree to
extend the lease term for an additional two (2) years period by executing a written amendment
hereto , and upon negotiation of a reasonable rent for the extended term .
39 Rent. Lessee shall pay to City a total yearly rent of nine hundred dollars
($ 900 . 00) per year . Rent is payable on or before the first day of January each year for that years
occupancy . Rent for any period less than ( 1 ) year shall be prorated based upon the number of
months occupied .
4 . Leasehold Excise Tax. Lessee shall pay any leasehold excise tax due pursuant to
RCW 82 . 29A to the City on or before the first day of January during each year of this
Agreement, or at such other regular periods as may be required due to State reporting
requirements . If the State of Washington changes the leasehold excise tax or an additional tax is
imposed on such leasehold, the tax payable by the Lessee shall be correspondingly changed .
Any initial taxes due shall be due upon execution of this Lease Agreement.
5 . Use. Lessee shall use the Premises for the following purposes and no others
without the prior written consent of the City : storage of materials and equipment related to the
Lessee ' s masonry business .,
No other uses , activities, or operations shall be conducted by the Lessee upon the leased
Premises without first obtaining the prior written consent of the City .
Lessee shall maintain the Premises in clean and sanitary conditions , free of fire or other
casualty hazards . The Lessee shall be solely responsible for the security, maintenance, and
protection of its property stored at the Premises .
City of Pasco Lease Agreement - 1
The Lessee shall within thirty (30) days from execution of this Lease Agreement to fence
the east and west sides of the property with chain-link fencing consistent with and matching
existing fencing .
Lessee shall be required to obtain a City building permit for installation of the fence . The
fence shall be constructed, and the property shall be maintained, in compliance with all
provisions of the Pasco Municipal Code .
6 . Insurance. Lessee shall obtain and maintain general commercial liability
insurance coverage with $ 1 , 000 , 000 minimum bodily injury and personal injury coverage ; and
$ 500 , 000 minimum property damage coverage limits on a per-occurrence basis . The Lessee
shall provide the City with certificates of insurance coverage naming the City as an additional
insured with a provision requiring thirty (30) days notice to the City prior to cancellation of the
policy .
Lessee shall obtain and maintain during the term of this Lease Agreement fire and
causality insurance on the Premises for replacement value including required Code updates for
the full value of any improvements upon the Premises naming the City as an additional insured
and providing the City with. the certificates of insurance coverage .
Lessee shall be solely responsible for the loss , damage , or casualty to its personal
property located on the Premises , regardless of cause . Lessee is encouraged to secure insurance
as may be necessary for the Lessee ' s personal property .
7. Indemnity :ind Hold Harmless . Lessee agrees to indemnify and hold the City
harmless as provided herein to the maximum extent possible under the law. Accordingly, the
Lessee agrees for itself, successors and assigns , to defend, indemnify and hold harmless the City,
its appointed and elected officials , and employees from and against liability for all claims ,
damages, suits , and judgment including the costs of defense thereof, for injury to person, death,
or property damage which is caused by, arises out of, or is incident to the Lessee ' s exercise of its
rights and privileges as granted by this Lease Agreement, except to the extent of the City ' s sole
negligence .
8 . Assignment or Sublet. Lessee shall not assign or transfer this Agreement or any
interest therein, nor sublet the whole or any part of the Premises , not grant an option for
assignment, transfer or sublease for the whole or any part of the Premises , nor shall this
Agreement or any interest therein be assignable or transferable by operation of law, or by any
process or proceeding of any Court or otherwise without the prior written consent of the City .
9 . Environmental Requirements . Lessee represents , warrants , and agrees that it
will conduct its activities on and off the Leased Premises in compliance with all applicable
environmental laws . As used in this Lease, Environmental Laws means all Federal , State , and
local environmental laws , rules , regulations , ordinances , judicial or administrative decrees ,
orders , decisions , authorizations or permits , including, but not limited to , the Resource
Conservation and Recovery Act, 42 U . S . C . § 6901 , et. seq. , the Clean Air Act, 42 U . S . C . § 7401 ,
et. seq. , the Federal Water Pollution Control Act, 33 U . S . C . § 1251 , et. seq . , the Emergency
City of Pasco Lease Agreement - 2
Planning and Community Right to Know Act, 42 U . S . C . § 1101 , et. seq . , The Comprehensive
Environmental Response , Compensation and Liability Act, 42 U . S . C . § 9601 , et. seq. , The Oil
Pollution Control Act, 33 U . S . C . § 2701 , et seq . , and Washington or any other comparable local,
City, County or federal statute or ordinance pertaining to the environment or natural resources
and all regulations pertaining thereto .
Toxic or hazardous substances are not allowed on the Leased Premises without the
express written permission of the City and under such terms and conditions as may be specified
by the City .
Lessee agrees that it will be responsible for all damages and costs associated with release
of any such substances upon the Leased Premises occurring during the term of this Lease
Agreement, including any cleanup costs .
The provisions of this section shall survive the termination of this Lease .
100 Notices . Notices to the City of Pasco shall be sent to the following address :
City of Pasco
Attn : Rick Terway
PO Box 293
Pasco WA 99301
Notices to the Lessee shall be sent to the following address :
Padilla Masonry, Inc
1900 West A Street
Pasco WA 99301
Receipt of any notice shall be deemed effective three (3 ) days after deposit of written
notice in the U . S . mails , with proper postage and properly addressed.
11 . General Provisions . For the purpose of this Agreement, time is of the essence .
In the event of a dispute regarding the enforcement, breach, default or interpretation of this
Agreement, the parties shall first meet in a good faith effort to resolve such dispute . In the event
the dispute cannot be resolved by agreement of the Parties , said dispute shall be resolved by
arbitration pursuant to RCW 7 . 04A, as amended, and the Mandatory Arbitration Rules (MAR) ;
venue shall be placed in Franklin County, Washington, the laws of the State of Washington shall
apply ; and the prevailing party shall be entitled to its reasonable attorney fees and costs . The City
retains the right to seek an unlawful detainer action or other legal action as may be necessary to
regain possession of the property .
12 . Entire Agreement. This Agreement contains the entire agreement between the
Parties , and no modification of this Agreement shall be binding upon the Parties unless
evidenced by an agreement in writing signed by the City and the Lessee after the date hereof.
City of Pasco Lease Agreement - 3
IN WITNESS WHEREOF , the Parties have executed this Agreement on the date and
year first jw :e above . , '
CITY O O f PADILLA MASONRY, INC .
Gary Crutch leld, CiAd4ager Damian J . Padil , President
�r
f
APPAO S TO FORM :
Leland B . Kerr, City Attorney
STATE OF WASHINGTON )
ss .
County of Franklin )
On this day personally appeared before me GARY CRUTCHFIELD , City Manager for
the City of Pasco , to be known to be the individual described in and who executed the within and
foregoing instrument, and acknowledged that he signed the same as his free and voluntary act
and deed for uses and purposes therein mentioned.
® y hand and official seal this day of , 20100
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STATE OF WASHINGTON )
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County of Franklin )
On this day personally appeared before me DAMIAN J . PADILLA, President of Padilla
Masonry, Inc . , to be known to be the individual described in and who executed the within and
foregoing instrument, and acknowledged that he signed the same as his free and voluntary act
and deed for the uses and purposes therein mentioned.
%} GIVEN under my hand and official seal this s day of `+e� - � 010 .
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City of Pasco Lease Agreement - 4
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