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
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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
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� 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.
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^ 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.
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^ 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
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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
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^ 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.
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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
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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.
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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.
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GIVEN under my hand and official seal this day of U Goo � ° , 2010.
ANN���ii
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Exhibit: "A"
MART�N
COMMUN TY CENTER