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HomeMy WebLinkAboutLoni & Luis Montes - Lease Agreement for 1900 West A Street 12.21.15FILED FOR RECORD AT REQUEST OF: City of Pasco, Washington WHEN RECORDED RETURN TO: City of Pasco, Washington 525 North 3rd Pasco WA 99301 CITY OF PASCO LEASE AGREEMENT THIS LEASE AGREEMENT is made and entered into this Z I day of December, 2015, by and between the City of Pasco, Washington, a Municipal Corporation, hereinafter referred to as "City", and Loni & Luis Montes, wife and husband, hereinafter referred to as "Lessee." IN CONSIDERATION of the mutual covenants contained herein and other valuable consideration, it is agreed as follow: 1. 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 five (5) years commencing on the 1" day of January, 2016, and ending on the 3151 day of December, 2020. 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. Notwithstanding the above, either party may terminate this Agreement upon ninety (90) days advance written notice with any prepaid rent prorated and that portion for the unexpired term of the Lease being refunded. 3. Rent. Lessee shall pay to City a total yearly rent of one thousand dollars ($1000.00) 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 City of Pasco Lease Agreement - 1 a-� 011 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. Lessee shall be required to maintain the property and fencing, 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 and 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. City of Pasco Lease Agreement - 2 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 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. 10. 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 509-543-5757 Notices to the Lessee shall be sent to the following address: Loni & Luis Montes 8712 Gatwick Ct Pasco WA 99301 509-543-7446 City of Pasco Lease Agreement - 3 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, other than the payment of rent, the parties shall first meet in a good faith effort to resolve such dispute. In the event such 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 roe upon the default in the payment of rent, termination of the Lease, or a material breach of the substantive provisions of this Lease. 12. Entirepent 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. IN WITNESS WHEREOF, the Parties have executed this Agreement on the date and year first written above. CITY PA . Rick Terway, Dir or Administrative & Community Services APPROVED AS TO FORM: Leland B. Kerr, City Attorney City of Pasco Lease Agreement - 4 LESSEE: STATE OF WASHINGTON ss. County of Franklin On this day personally appeared before me RICK TERWAY, ACS DIRECTOR, for the City of Pasco, to be known to be the individual described in and who executed the within and and deed f oregoinuses instrument, and acknowledged that he signed the same as his free and voluntary act and purposes therein mentioned. r:TVFV under my hand and official seal this _;I�L day of )/2015. Notary Public State of Washington t SANDY L KENWORTHY MY COMMISSION EXPIRES NOTARY PU I�!aAugust7,2019 Residing at: (�MMWSMy Commission Expires STATE OF WASHINGTON ss. County of Franklin ) On this day personally appeared before me LONI & LUIS MONTES, to be known to be the individuals described in and who executed the within and foregoing instrument, and acknowledged that they signed the same as their free and voluntary act and deed for the uses and purposes therein mentioned. GIVEN under my hand and offijal thist� �lSSday of Shc�►�-' ' 2015. o v ut Tav Tr in and for the SpateYpf Washington Residing at: My Commi: �OCNRY �dG PUBVI City of Pasco Lease Agreement - 5