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HomeMy WebLinkAboutBenton Franklin Head Start MLK Lease 10.01.10/0—N MARTIN LUTHER KING COMMUNITY CENTER MUNICIPAL LEASE AGREEMENT THIS AGREEMENT made on , 2010, between the City a Pasco, a municipal corporation of the State of Washington, located in the County of Franklin, hereinafter referred to as "Lessor ", and Benton - Franklin Head Start, a nonprofit corporation of the State of Washington, hereinafter referred to as "Lessee ", both sometimes referred to as "Parties." IN CONSIDERATION of the mutual covenants herein set out, the Parties agree as follows: 1. Description of Premises. Lessor hereby leases to Lessee approximately 4,800 square feet of space, as shown on the attached Exhibit "A ", at the Martin Luther King Community Center, more specifically described as follows: The Martin Luther King Community Center located at 205 South Wehe Street, Pasco, Washington, which is situated in the portion of the NW 1/4 of the SW 1/4, Section 28, T.20N, R30E.W.M. 2. Term. This lease shall commence on October 1, 2010, for a term of sixty (60) months expiring on September 30, 2015. Lessee shall have the option to renew the lease for periods of the same duration upon giving written notice to the Lessor of its intent to exercise the option at least ninety (90) days before expiration of the lease term and upon agreement between Lessor and Lessee of the appropriate monthly rent during the renewal term of the lease. Either party may terminate this lease prior to the expiration of any lease term by giving the other party one (1) year advance notice of their intent to terminate the lease. 3. Rent. Lessee shall pay Lessor for the use of the premises the amount of $2,120.00 per month for the year 2010; $2,162.40 per month for the year 2011; $2,205.65 per month for the year 2012; $2,249.76 per month for the year 2013; $2,294.76 per month for the year 2014; and $2,340.66 per month for the year 2015, payable on the first day of each month and sent to: City of Pasco PO Box 293 Pasco WA 99301 There will be a late collection charge of $50.00 for any delinquent rental payment not delivered to the Lessor on or before the 5th day of each month during the term of this Agreement, and shall bear interest at the rate of 1 1/2 percent per month until paid in full. Leasehold excise tax is levied pursuant to Chapter 82.29A RCW. The Lessee shall faithfully pay this tax when due unless Lessee provides the Lessor with proof of exemption from \ \so1o2 \acs \agreements \m1k head start9.20.10.docx the Washington State Department of Revenue. If the leasehold excise tax levy changes during the term of this Agreement, the tax payable hereunder shall, likewise, be correspondingly changed. In the event that the monthly operating costs to the Lessor increase by ten percent (10 %) or more during the term of this lease, the additional operating costs shall be passed onto the Lessee by an increase in the monthly rental equal to the increase in operating cost. Operating costs include maintenance services, utilities and other direct out -of -the pocket expenses of the Lessor for maintenance and operation of the Martin Luther King Community Center facility. 4. Ouiet Enjoyment. Lessor covenants and agrees that the Lessee shall lawfully, peacefully, and quietly hold, occupy and enjoy the leased premises during the term of the lease without objection or molestation. 5. Use of the Lease Premises. Lessee agrees that the leased premises shall be used by the Lessee exclusively as a preschool for early childhood education and related activities. Such use shall conform with applicable City ordinances and State and Federal laws. No other usage of the building shall be allowed unless prior written consent is obtained from the City Manager, which shall be granted or not granted at the absolute discretion of the City, it being understood that it is the purpose of the City to maintain the neighborhood and preserve the building. When available, the Lessee may use the playground and gym located on the premises, such uses to be supervised by Lessee and wholly the responsibility of Lessee. Lessee's use of the playground and gym shall be coordinated with the Lessor's designee as necessary to allow Lessee's use of the playground and gym by Lessee when such facilities are not required for Lessor's purposes, including the recreational programs and activities sponsored by the YMCA at the Martin Luther King Community Center. In such event, Lessee shall not discriminate against any person on the basis of race, color, religion, age, sex, national origin, or physical handicap, and further understands and agrees to comply with the City's Nondiscrimination in Community Athletics Policy and with the Fair Play in Community Sports Act. Lessee agrees to maintain a safe environment for all participants in such playground or gym facilities. In the event the Lessee suspects a youth participant has sustained an injury, including but not limited to concussion or other head injury, the youth participant shall be removed from participation immediately and the participant's parents or guardians shall be contacted immediately. In the event of an emergency relating to the health and safety of a participant, Lessee shall call 911 and report the emergency immediately. Lessee shall not exceed the posted room occupancy signs posted for fire safety, nor shall any flammable materials or open flames be permitted within the premises. 6. Acceptance by Lessee. Lessee has inspected and knows the condition of the premises and accepts the same in their present condition (subject to ordinary wear, tear and \ \so1o2 \acs \agreements \m1k headstart9.20.10.docx � deterioration in the event the term commences after the date hereof and to the rights of present or former occupants, if any, to remove movable property), including the interior surfaces of exterior walls. 7. Lessor's Right of Entry. Lessor or Lessor's agent may enter the premises at reasonable hours to examine the same, to do anything Lessor may be required to do hereunder or which Lessor may deem necessary for the good of the premises. 8. Maintenance and Improvements by Lessee. Lessee shall take good care of the premises and the equipment and fixtures therein. At the expiration of the term, Lessee shall surrender the premises broom clean, in as good condition as the reasonable use thereof will permit. All damage or injury to the leased premises not caused by fire and other casualty, as set forth in Section 14 hereof, and all damage to glass shall be promptly repaired by the Lessee. All improvements to the leased premises made by the Lessee shall be first approved by Lessor. All building repairs, alterations, additions, improvements, installation, equipment and fixtures, by whomsoever installed or erected (except such business trade fixtures belonging to Lessee as can be removed without damage to or leaving incomplete the premises or building) shall belong to Lessor and remain on and be surrendered with the premises as part thereof, at the expiration of this lease or any extension thereof. 9. Utilities and Custodial Services. Lessor shall furnish and pay for all electricity, �--. gas, water, fuel, or any services or utilities used in or assessed against the premises, unless otherwise herein expressly provided. Lessor shall also be responsible for removal of garbage from the leased premises. AO-NI Lessee shall be responsible for charges billed to Lessor for "false alarms" on the premises security system when such charges are incurred as a result of Lessee's failure to properly disarm system during use of the premises by Lessee. Lessee will provide, at its own expense, custodial services for the premises leased herein. 10. Signs and Advertisements. Lessee shall not put upon nor permit to be put upon any part of the premises, any signs, billboards, or advertisements whatever, without the prior written approval of the City Manager. 11. Indemnity/Hold Harmless. Lessee shall defend, indemnify, and hold harmless the Lessor, its officers, officials, employees and volunteers from and against any and all claims, suits, actions, or liabilities for injury or death of any person, or for loss or damage to property, which arises out of Lessee's use of premises, or from the conduct of Lessee's business, or from any activity, work or thing done, permitted, or suffered by Lessee in or about the premises, except only such injury or damage as shall have been occasioned by the sole negligence of the Lessor. \ \solo2 \acs \agreements \mlk head start9.20.10.docx ^ 12. Insurance. The Lessee shall procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the Lessee's operation and use of the leased premises. A. Minimum Scope of Insurance. Lessee shall obtain insurance of the types described below: (1) Commercial General Liability insurance shall be written on Insurance Services Office (ISO) occurrence form CG 00 01 and shall cover premises and contractual liability. Lessor shall be named as an insured on Lessee's Commercial General Liability insurance polity using ISO Additional Insured- Managers or Lessors of Premises Form CG 20 11 or a substitute endorsement providing equivalent coverage. (2) Property insurance shall be written on an all risk basis. B. Minimum Amounts of Insurance. Lessee shall maintain the following insurance limits: (1) Commercial General Liability insurance shall be written with limits no less than $1,000,000 each occurrence, $2,000,000 general aggregate. ^ (2) Property insurance shall be written covering the full value of Lessee's property and improvements with no coinsurance provisions. C. Other Insurance Provisions. The insurance policies are to contain, or be endorsed to contain, the following provisions for Commercial General Liability insurance: (1) The Lessee's insurance coverage shall be primarily insurance as respects the Lessor. Any insurance, self - insurance, or insurance pool coverage maintained by the Lessor shall be excess of the Lessee's insurance and shall not contribute with it. (2) The Lessee's insurance shall be endorsed to state that coverage shall not be cancelled by either party, except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the Lessor. D. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best rating of not less than ANII. E. Verification of Coverage. Lessee shall furnish the Lessor with original certificates and a copy of the mandatory endorsements, including but not necessarily limited to the additional insured endorsement, evidencing the insurance requirements of .-� the Lessee. \ \so1o2 \acs \agreements \m1k headstart9.20.10.docx ^ F. Waiver of Subrogation. Lessee and Lessor hereby release and discharge each other from all claims, losses, and liabilities arising from or caused by any hazard covered by property insurance on or in connection with the premises or said building. This release shall apply only to the extent that such claim, loss or liability is covered by insurance. G. Lessor's Property Insurance. Lessor shall purchase and maintain during the term of the lease all -risk property insurance covering the buildings for their full replacement value without any coinsurance provisions. Lessee shall comply with all insurance regulations so that the lowest fire, lightening, explosion, extended coverage, and liability insurance rates may be obtained. Nothing shall be done or kept in or on the premises by Lessee which will cause an increase in the premium for any such insurance of the premises or on any building of which the premises are a part or on any contents located therein, over the rate usually obtained for the property use of the premises permitted by this lease or which will cause cancellation of any such insurance. In the event the Lessee's use of the premises is responsible for an increase in the insurance rates on the building of which the premises are a part, then in such event, Lessee agrees to pay any resulting increase in premiums on such building. 13. Damaize to Property on Premises. Lessee agrees that all property of every kind and description kept, stored, or placed in or on the premises shall be at Lessee's sole risk and hazard and that Lessor shall not be responsible for any loss or damage to any of such property resulting from fire, explosion, water, steam, gas, electricity, or the elements, whether or not originating in the premises, caused by or from leaks or defects in or breakdown of plumbing, piping, wiring, hearing, or any other facility, equipment, or fixtures or any other cause or act except resulting from the gross negligence of Lessor or anyone for whom Lessor may be responsible. 14. Damage by Casualty. In case the leased premises shall be destroyed or shall be so damaged by fire or other casualty, as to become untenantable, then in such event, at the option of the Lessor, this lease shall terminate from the date of such damage or destruction and the Lessee shall immediately surrender such premises and all interest therein to Lessor, and Lessee shall pay rent only to the time of such surrender. Lessor shall exercise such option to terminate this lease by notice in writing delivered to Lessee within ten (10) days after such damage or destruction. In case Lessor shall not elect to terminate this lease, in such event, this lease shall continue in full force and effect and the Lessor shall repair the leased premises with all reasonable promptitude, placing the same in as good a condition as they were at the time of the damage or abate in proportion to the extent and duration of untenantability. In either event Lessee shall remove all rubbish, debris, merchandise, furniture, equipment, and other personal property, within ten (10) days after the request of the Lessor. If the leased premises shall be only slightly injured by fire or the elements, so as not to render the same untenantable and unfit by occupancy, then the Lessor shall repair the same within a reasonable time, and in that case the .—� rent shall not abate. No compensation or claim shall be made by or allowed to the Lessee by \ \so1o2 \acs \agreements \m1k head start9.20.10.docx reason of any inconvenience or annoyance arising from the necessity of repairing any portion of the building or the leased premises, however, the necessity may occur. 15. Public Requirements. Lessee shall comply with all laws, orders, ordinances, and other public requirements now or hereafter affecting the premises or the use thereof, and save Lessor harmless from expense or damage resulting from failure to do so. The leased premises are not exempted from compliance with zoning or any other municipal codes or ordinances nor from any other requirements of law due to title being in the name of the City. 16. Assignment or Sublease. Lessee shall not assign, transfer, or encumber this lease and shall not sublease the premises or any part thereof or allow any other person to be in possession thereof without the prior written consent of the Lessor. 17. Surrender at End of Term. At the expiration of the term of this lease, the Lessor or his agent shall have the right to enter and take possession of the leased premises, and the Lessee agrees to deliver the same without process of law. The Lessee shall be liable to Lessor for any loss or damage, including attorney's fees and court costs incurred, as a result of Lessee's failure to comply with this obligation. 18. Holding Over. Any holding over by Lessee after the expiration of the term of this lease or any extension thereof shall be construed to be a tenancy from month to month at a monthly rental equal to one hundred percent (100 %) of the rent payable during the last month r1 immediately prior to the expiration of the term and shall be subject to the terms and conditions of this agreement. Nothing herein set out shall be construed to authorize any such holding over. 19. Default. If default is made in the payment of any installment of rent on the due date thereof, or if Lessee shall default in the performance of any other agreement (other than payment of rent) continuously for ten (10) days after written notice thereof, or if the premises be vacated or abandoned, then in any such event this lease shall terminate, at the option of Lessor, and Lessor may re -enter the premises and take possession thereof, with or without legal process being hereby expressly waived, and upon such entry, as aforesaid, this lease shall terminate and the Lessor may exclude Lessee from the premises, changing the lock on the door or doors if deemed necessary, without being liable to Lessee for any damages or for prosecution therefor. Lessor's rights in such event may be enforced by action in unlawful detainer or other proper legal action, and the Lessee expressly agrees, notwithstanding termination of this lease and re- entry by the Lessor that the Lessee shall remain liable for a sum equal to the entire rental payable to the end of the term of this lease and shall pay any loss or deficiency sustained by the Lessor on account of the premises being let for the remainder of the original term for a less sum than before. Lessor, as agent for Lessee without notice may re -let the leased premises or any part thereof for the remainder of the term or for any longer or shorter period as opportunity may offer, and at such rental as may be obtained and Lessee agrees to pay the difference between a sum equal to the amount of rent payable during the remainder of the term and the net rent actually received by the Lessor during the term after deducting all expenses of every kind for repairs, recovering possession, and re- letting the same, which difference shall accrue and be payable monthly. All property of the Lessee which is now or may hereafter be at any time during the term of this lease in or upon such premises, whether exempt from execution or not, shall be \ \so1o2 \acs \agreements \m1k head start9.20.10.docx ^ bound by and subject to a lien for the payment of the rent herein reserved, and for any damages arising from any breach by the Lessee of any of the covenants or agreements of this lease to be performed by Lessee. In the event of default by Lessee in the payment of rent or otherwise, Lessor may foreclosure such lien and take possession of such property or any part thereof and sell or cause the same to be sold, at such place as Lessor may elect, at public or private sale, with or without notice, to the highest bidder for cash, and apply the proceeds of such sale to pay the costs of taking possession of and selling such property, and then toward the debt and/or damages as aforesaid. Any excess of the proceeds of the sale over such costs, debt, and/or damages shall be paid to Lessee. Any such sale shall bar any right of redemption by Lessee. 20. Waiver. The rights and remedies of the Lessor under this lease, as well as those provided or accorded by law, shall be cumulative, and none shall be exclusive of any other rights or remedies hereunder or allowed by law. A waiver by Lessor of any breach or breaches, default or defaults, of Lessee hereunder shall not be deemed or construed to be a continuing waiver of such breach of default nor as a waiver of or permission, expressed or implied, for any subsequent breach or default, and it is agreed that the acceptance by Lessor of any installment of rent subsequent to the date of same should have been paid hereunder, shall in no manner alter or affect the covenant and obligation of Lessee to pay subsequent installments of rent promptly upon the due date thereof. No receipt of money by Lessor after the termination in any way of this lease shall re- instate, continue, or extend the term above demised. 21. Bankruptcy. Neither this lease or any interest therein nor any estate hereby �-• created shall pass to any trustee or receiver in bankruptcy or to any other receiver or assignee for the benefit of creditors by operation of law during the term of this lease or any renewal thereof. 22. Encumbrances. Any assignment, transfer or conveyance by Lessee of any property rights arising out of this lease shall not encumber, alienate, diminish, cloud, or impair in any way the title ownership and interest of the City in and to such property. 23. Notices. Any notice hereunder shall be sufficient if sent by registered or certified mail, addressed to Lessee and Lessor at the following: Lessee Benton - Franklin Head Start 1549 Georgia Ave SE Suite B Richland WA 99352 Lessor City of Pasco PO Box 293 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. \ \solo2 \acs \agreements \mlk headstart9.20.10.docx 11—N 24. Covenants to Run with the Premises. The covenants herein contained shall run with the premises hereby let and bind the heirs, executors, administrators, assigns, and successors of the Lessor and Lessee respectively. Consent of Lessor to assignment, and acceptance of rent from assignee of the Lessee shall not release the Lessee from his obligation to pay rent and comply with other conditions of this lease. 25. 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. In the event any provision of this Agreement is deemed to be unenforceable, the other provisions of the Agreement shall remain in full force and effect. 26. Entire Agreement. This Agreement contains the entire agreement between the Parties, and no modification of this Agreement shall be binding upon the parties unless evidences by an agreement in writing signed by the Lessor 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 OF P*C0/j BENTON- FRANKLIN HEAD STAR By: By: Gary tchfield, ager J 's cucy, Executive Director AS TO FORM By: �.. Leland B. K rr, City Att rney \ \so1o2 \acs \agreements \m1k headstart9.20.10.docx n. 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 the uses and purposes therein mentioned. Y�ny hand and official seal this day of h 1, 2010. _ c �; 0 T R y a PUBLIC %,�; a' ^ �1•� �® NOTARY PUBL i and for the State 4 Washington a ®• ; :,a� • o,,�, ® ®® Residing at: C 'fi ;110 '0% My Commission Expires: / STATE OF WASHINGTON ) ss. County On this day personally appeared before me JAMES SKUCY, Executive Director of --� Benton - Franklin Head Start, 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. J­" GIVEN under my hand and official seal this day of U Goo � ° , 2010. ANN���ii �� v�:• �,�SSIO,y 9 �i e4,* A�, N ARY PUBLIC in and for the State of Washington Y. FEB y;0 S Residing at: o14 N �)e l -/r-, 14Q.� n A 28 :Z= = My Commission Expires: re hw g ck"L" _, s 2013 Y %2p °P wns��V��� ARmii%�� \ \so1o2 \acs \agreements \mlk headstart9.20.10.docx Exhibit: "A" MART�N COMMUN TY CENTER