HomeMy WebLinkAboutLa Nueva Estrella LLC 20169
LEASE AGREEMENT
Pasco Transportation Depot
North and South Interior Office Space — Bus Dock
1. PARTIES. This Lease Agreement (Lease) is made and entered into this day
of °L/2016, by and between the City of Pasco, a municipal corporation (Landlord) and La
Nueva Estrella LLC, Pedro Martinez Diaz, President and General Manager (Tenant).
2. PREMISES. Landlord hereby leases to Tenant and Tenant hereby leases and takes from
Landlord that certain real property at the Pasco Transportation Facility located at 535 North First
Avenue, in the City of Pasco, County of Franklin, State of Washington. The leased premises are the
North Interior Office and the South Interior Office consisting of approximately 320 square feet, more or
less (referred to as the Premises), together with all improvements thereon and appurtenances thereto,
including the nonexclusive right, in common with all others of access to and from the Premises.
Tenant shall also have the non-exclusive right and privilege to use the eastern -most bus
loading and unloading dock.
3. TERM. This Lease shall be in full force and effect from January 1, 2017 through
December 31, 2018 unless terminated as provided herein. The leasee shall have the option to renew for 2
(two) years upon full & faithful performance of terms & conditions of the lease. A 3% increase per year
will be added to the rent payment at the beginning of each year of extension.
4. RENT AND OTHER CHARGES. Rent payments shall commence on the effective
date of this Lease. Subsequent monthly rent payments shall be payable in advance, on or before the first
day of each month of the Term. Rent shall be payable to Landlord without demand and without
deduction, setoff or counterclaim.
4.1 Rent shall be: the sum of $1565.03 per month. Tenant shall pay a late service charge on
all past due rent at the rate of five percent (5%) per month, but in no event higher than the legal limit. A
3% increase in rent will occur on the first day of January, each year thereafter.
4.2 Leasehold Excise Tax. Tenant shall also pay statutory Leasehold Excise Tax (12.84%),
which Excise Tax shall be paid to Landlord in the manner required in Section 4 of this Lease.
4.3 Security Deposit.
(a) Upon execution of this Lease, Tenant shall deposit the sum equal to three (3) months rent
with Landlord as a security deposit. This sum shall guarantee Tenant's performance of its obligations
hereunder. If Tenant fails to perform any of its obligations hereunder, Landlord may apply the
appropriate portion of the security deposit to cure the default or to compensate the Landlord for damage
it has sustained as a result of Tenant's default. In the event that Landlord deems it necessary to provide
written notice to Tenant in order to secure Tenant's compliance with the provisions of this lease,
Landlord may reimburse itself $100 for each such notice written and provided to Tenant. Such notice
shall include Landlord's intent to apply monies from the deposit for such purpose.
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(b) If any portion of the deposit is so used, Tenant shall, upon demand, deposit sufficient cash
with the Landlord to restore the security deposit to its original amount.
(c) If Tenant fully performs its obligations under this Lease, the security deposit or any balance
thereof shall be returned to the Tenant at the expiration of this Lease, or after Tenant has vacated the
Premises, whichever is later, provided that Landlord may retain the security deposit until such time as
any amount due from the Tenant has been paid in full.
5. USE OF PREMISES. The Premises shall be used by Tenant for the provision of
passenger van transportation services and for other uses incidental thereto and for no other use or
purpose without Landlord's prior written consent. Tenant agrees to have a representative on site
providing passenger services throughout the duration of this Lease and will not abandon or vacate the
ricket agent office for a period longer than 30 days.
6. RESTRICTIONS ON USE. In connection with the use of the Premises, Tenant shall:
(a) Refrain from any use that would be offensive to other tenants at the Premises or users of
neighboring premises or that would tend to create a nuisance or damage the reputation of the Premises.
(b) Not permit its customers to cause litter, garbage or other refuse or debris to accumulate on
the Premises except in suitable garbage containers.
(c) Not accept as a passenger or prospective passenger, nor permit to remain on the Premises,
any person who is apparently suffering from an infectious disease; or is under the influence of illegal
drugs or intoxicating liquor; causes a nuisance or is likely to cause a nuisance on a bus, vehicle or the
Premises; is carrying an article or thing that is causing or is likely to cause inconvenience to other
passengers; is smoking; is consuming intoxicating liquor; or is using profane or objectionable language.
(d) Signs. Tenant shall not erect signage without Landlord's prior written consent.
(e) Bus and Vehicle Repair, Maintenance. No van or vehicle repair or maintenance of any kind
is permitted on the Premises.
(f) Condition of Vehicles. Vehicles may not exceed 12 years in age; must be maintained in
good condition without broken windows and without major dents or damage. Vehicles shall be neatly
and uniformly painted.
(g) Maintenance. The Tenant shall ensure that maintenance is properly and regularly carried out
on every vehicle operated by the Tenant on the Premises.
7. CARE OF PREMISES. Tenant shall use ordinary care in its use of the Premises, and
repair any damage caused by its negligence, reasonable wear and tear excepted.
8. LANDLORD'S REPRESENTATIONS, WARRANTIES AND COVENANTS.
Landlord hereby represents and warrants to Tenant that it has the full right, power and authority to lease
the Premises to Tenant. Except as specifically set forth herein, neither Landlord nor its agents have
made any representations with respect to the Premises. No rights, easements, or licenses are acquired by
Tenant by implication or otherwise except as expressly set forth in the provisions of this Lease. The
taking of possession of the leased property by the Tenant shall be conclusive evidence that the Premises
were in good condition at the time possession was taken. TENANT ACCEPTS THE PREMISES AS-
IS.
9. QUIET ENJOYMENT. Landlord agrees that so long as Tenant observes and performs
all of the agreements and covenants required of it hereunder, Tenant shall peaceably and quietly have,
hold and enjoy the Premises for the Lease term without any encumbrance, interference or hindrance by
Landlord, its agents or employees.
10. UTILITIES, REPAIRS AND MAINTENANCE. Landlord shall provide, at its own
expense, electrical service, heating and cooling to the Premises. Landlord shall also maintain and repair
the Premises, except for maintenance or repairs required as a result of Tenant's negligence. Tenant shall
give Landlord access to the Premises at all reasonable times, without charge or diminution of rent, to
enable Landlord to examine the same and to make such repairs, additions and alterations as Landlord
may deem advisable or is required hereunder to accomplish.
11. TAXES. Tenant shall pay all taxes assessed against and levied upon Tenant's trade
fixtures, and all other personal property of Tenant contained in or around the Premises.
12. INSURANCE AND INDEMNITY.
(a) Workers' Compensation. The Tenant must maintain Workers' Compensation insurance in
compliance with all applicable statutes. The policy shall also provide Employer's Liability stop gap
coverage with limits of not less than $500,000 Bodily Injury each accident, $500,000 Bodily Injury by
disease, policy limit, and $500,000 Bodily Injury by disease, each employee.
(b) General Liability. The Tenant must maintain an occurrence form commercial general
liability coverage policy. Such coverage shall include, but not be limited to, bodily injury, property
damage -- broad form, and personal injury, for the hazards of Premises/operation, broad form,
contractual, independent contractors, and products/completed operations. The Tenant must maintain the
aforementioned commercial general liability coverage with limits of liability not less than $1,000,000
each occurrence; $1,000,000 personal and advertising injury; $2,000,000 general aggregate, and
$2,000,000 products and completed operations aggregate. These limits may be satisfied by the
commercial general liability coverage or in combination with an umbrella or excess liability policy,
provided coverage afforded by the umbrella or excess policy are no less than the underlying commercial
general liability overages.
(c) Automobile Liability. The Tenant must carry Automobile Liability coverage. Coverage shall
afford total liability limits for Bodily Injury Liability and Property Damage Liability in the amount of
$1,000,000 per accident. The liability limits may be afforded under the Commercial Policy, or in
combination with an Umbrella or Excess Liability Policy provided coverages afforded by the Umbrella
Excess Policy are no less than the underlying Commercial Auto Liabilitycoverage. Coverage shall be
provided for Bodily Injury and Property Damage for the ownership, use, maintenance or operation l all
owned, non -owned and hired automobiles. The Commercial Automobile Policy shall include at least
statutory personal injury protection, uninsured motorists and underinsured motorists coverages.
(d) Tenant Property Insurance. The Tenant must keep in force for the duration of the Lease a
policy covering damages to its property at the Premises. The amount of coverage shall be sufficient to
replace the damaged property, loss of use, and must comply with any ordinance or law requirements.
(e) Hazardous Materials Coverage. Tenant must carry sufficient coverage, to the reasonable
satisfaction of Landlord, for damage caused by Hazardous Materials. Said coverage to be of an amount
and type consistent with industry standards and at a rate that is commercially reasonable.
(f) Adjustment to Insurance Coverage Limits. The coverage limits set forth herein shall be
increased at the time of any Renewal Term to limits as reasonably specified by Landlord.
(g) Additional Insured - Certificate of Insurance. The Tenant shall provide, prior to occupancy,
evidence of the required insurance in the form of a Certificate of Insurance issued by a company (rated
B + 12 or better according to Best's), licensed to do business in the state of Washington, which includes
all coverages required in this Section 12. Tenant will list the Landlord as an Additional Insured on the
Commercial General Liability and Commercial Automobile Liability Policies. The Certificate(s) shall
also provide the coverage may not be canceled, non -renewed, or materially changed without thirty (30)
days prior written notice to the Landlord.
13. DAMAGE OR DESTRUCTION; CONDEMNATION. If the Premises are damaged
or destroyed in whole or in part; or if the Premises or a substantial portion thereof are taken by
condemnation or under the power of eminent domain, Landlord may, at its option, elect to terminate this
tenancy.
14. SURRENDER AT EXPIRATION. Upon expiration of the Lease term or earlier
termination on account of default, Tenant shall surrender the Premises in the same condition as at the
commencement of the lease, reasonable wear and tear excepted.
15. DEFAULT. Tenant shall be in default of this Lease if it fails to comply with any term or
condition or fulfill any obligation of the Lease. In the event of a default, this Lease may be terminated at
the option of Landlord by written notice to Tenant. Whether or not the Lease is terminated by the
election of Landlord or otherwise, Landlord shall be entitled to recover damages from Tenant and
Landlord may retake possession of the Premises, and reserves any other remedy available to the
Landlord under the applicable law.
16. MISCELLANEOUS.
16.1 Environmental Compliance By Tenant. Tenant shall not cause or permit any
Hazardous Material to be brought upon, kept or used in or about the Premises.
16.2 Non -waiver. Waiver by either party of strict performance of any provision of this
Lease shall not be a waiver of or prejudice to the party's right to require strict performance of the same
provision or of any other provision in the future.
16.3 Notices. Any notice required or permitted under this Lease shall be deemed to
have been given when actually delivered or 72 hours after deposited in the United States mail as
certified mail addressed to the address first given in this Lease or to such other address as may be
specified from time to time by either of the parties in writing.
16.4 Time of Essence. Time is of the essence of the performance of each of the
obligations under this Lease.
16.5 Recording of Lease. This Lease need not be recorded.
16.6 Rules and Regulations. Tenant shall observe reasonable Rules and Regulations
established and amended by Landlord for the Premises from time to time upon 30 days advance, written
notice from Landlord to Tenant. Tenant shall have a reasonable opportunity to comment on proposed
rules and regulations.
16.7 Assignment. Tenant shall not assign or transfer this Lease.
16.8 Alterations, Improvements And Additions. Tenant shall make no alterations,
improvements or additions to the Premises. Tenant shall not add furniture or other items to the
Premises, except for furnishings in the interior of the Premises, which are reasonably necessary for
Tenant to conduct its permitted activities.
16.9 Compliance with Laws, Ordinances and Regulations. Tenant shall comply with
all laws, ordinances and regulations of any governmental agency or public authority having jurisdiction
over the Premises or Tenant's use thereof.
16.10 Responsible Party. Following is the name and phone number of the party which
may be contacted in an emergency:
Pedro Martinez, President
& General Manager
704 Rd 37 Pasco
Office Ph: 509-547-8349
Fax: 509-545-5101
Cell: 509-947-1183
Miguel Martinez, Vice President
7812 Three Rivers Dr. Pasco
Cell: 509-947-0820
16.11 Tenant to Supply Information. The Tenant shall, whenever requested by the
Landlord to do so, furnish to the Landlord full and correct information requested by the Landlord.
16.12 Fares and Timetables. The Tenant shall make available to Landlord and to any
person on demand the following information:
(1) each route along which a van or vehicle is operated;
(2) stops along each route;
(3) the approximate times at which a van or vehicle will be available along each route;
(4) the fares payable by passengers; and
(5) the class of van or vehicle provided for the route service.
16.13 Illegal Purposes. Tenant shall not use a van or vehicle for an illegal purpose or
cause or permit the vehicle to be used for an illegal purpose.
16.14 Enforcement and Attorneys' Fees. In the event that either party to this Agreement
shall bring a claim to enforce any rights hereunder, the prevailing party shall be entitled to recover costs
and reasonable attorneys' fees incurred as a result of such claim.
16.15 Discrimination. Tenant shall not discriminate against any passenger because of
sex, age, race, color, creed, national origin, marital status or the presence of any disability, including
sensory, mental or physical handicap.
17. NOTICES. Notices to the Landlord shall be sent to the following address:
City of Pasco
Admin & Comm Services
PO Box 293
Pasco WA 99301
Notices to the Tenant shall be sent to the following address:
La Nueva Estrella LLC
535 N 15t Ave
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.
IN WITNESS WHEREOF, the parties hereto have executed or caused this instrument to be
executed the day of k e f �� , 2016.
Landlord:
CITY OF PASCO
I
re
Printed Name
Tenant:
LA NUEVA ESTRELLA LLC
Printed Name
STATE OF WASHINGTON )
COUNTY OF FRANKLIN 1 )ss.
I certify that I know or have satisfactory evidence that Pt�df o Y """ �' n ao-the
person who appeared before me, and said person acknowledged that he signed this instrument and
acknowledged it to be his free and volun ry act for the uses and purposes mentioned in the instrument.
Dated this --_e day of ( 20
1)Notary PublicSA
f �, of Was in
••'
STATE OF WASHINGTON
COUNTY OF FRANKLIN
G
Signature of otary
San eh orr
Print Name of Notary
I certify that I know or have satisfactory evidence that `; Q 6t is the
person who appeared before me, and said person acknowledged that he signed this instrument and
acknowledged it to be h' ee and volu ary act for the uses and purposes mentioned in the instrument.
Dated this day of 20
TONI L. ZUNKER
NOTARY PUBLIC
STATE OF WASHINGTON
... ''nN EXPIRES
MAKCH 3 2020
Print Name of Notary