HomeMy WebLinkAboutColumbia Marina Ctr Boat Basin Lease Addendum No.1 03.07.18ADDENDUM NO. 1
BOAT BASIN SUBLEASE AGREEMENT
Replacement Docks)
THIS ADDENDUM dated this _21 day of March, 2018, by and between the City of
Pasco, a Washington Municipal Corporation, hereinafter referred to as "City", and JT&T, LLC, a
Washington Limited Liability Company, doing business as Columbia Marine Center, hereinafter
referred to as "Columbia."
WHEREAS, the Parties have entered into the Boat Basin Sublease Agreement on,
December 15, 2012, providing Columbia lease of the premises known as the "Pasco Boat Basin"
including its slip covered docks referred to therein as "slip docks"; and
WHEREAS, during the winter of 2016-2017, severe winter conditions resulted in the
declaration of an emergency resulting in catastrophic damage to the slip docks rendering them
destroyed; and
WHEREAS, it is the desire of the City and Columbia to replace the destroyed docks
allocating their respective responsibilities and interest in said replacement docks by this
Addendum. NOW, THEREFORE,
IN CONSIDERATION of the mutual covenants contained herein, the Parties agree to
amend the Boat Basin Sublease Agreement as follows:
Section 1. Article 16 — Replacement Docks shall be and hereby is created and shall
read as follow:
ARTICLE 16 — REPLACEMENT DOCKS
16.1 Columbia's Responsibilities.
A. Columbia shall procure and have delivered onsite to the Pasco Boat Basin,
Pasco, Franklin County, Washington, and shall install replacements of the 40 covered slip
docks, meeting the specifications as attached hereto and incorporated herein as Exhibit 1.
B. Remove and appropriately dispose of the remains and debris of the
destroyed 40 slip covered docks.
C. Secure the necessary permitting and cover the costs of installation for pier
pilings necessary to accommodate the replacement docks, as provided in Exhibit 1 above.
D. All costs for such replacement, fabrication, transport, pilings, installation
and all other costs associated with the replacement docks shall be borne by Columbia in
the amount of $605,000.00. To the extent available, all insurance proceeds available to
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Boat Basin Sublease Agreement - 1
Columbia under Article 7 "Insurance" of the Boat Basin Sublease Agreement, shall be
applied to the replacement of the docks.
16.2 City's Responsibilities.
A. Shall expedite and promptly process all City licenses and permits
necessary for the installation of the replacement docks.
B. Shall reimburse Columbia for its actual costs of the removal, replacement
and installation of the replacement docks as identified in Section 16.1 above at the Pasco
Boat Basin in an amount not to exceed $744,341.08, (which is the difference between the
amount of the anticipated dock replacement contract cost ($1,242,496.08), plus
miscellaneous costs and contingencies, which costs are estimated to be $1,394,944.08)
and the amount to be payable by Columbia. City shall reimburse Columbia upon
completion of installation and acceptance by the City and Corps of Engineers as stated
herein. In the event that total costs exceed $1,394,944.08, the parties shall meet in good
faith to determine how excess costs are to be paid.
C. Shall expeditiously pursue and secure the approval of the United States
Department of the Army Corps of Engineers of the replacement docks under Section 6
Structures and Equipment" of the Lease to the City of Pasco, Washington (Lease No.
W912EF-1-04-13).
16.3 Upon acceptance by the City and Corps of Engineers, the replacement docks
provided herein shall become and be a part of the Boat Basin's Sublease Agreement as property
of the City, subject to the exclusive control and possession of Columbia, including the rights of
all rents, profits, and revenues generated from the use thereof during the term of the Sublease
Agreement.
16.4 Upon termination or expiration of the Boat Basin Sublease Agreement, and any
extensions thereof, the replacement docks shall remain as a part of the City's boat basin
complex, as property of the City, without any further compensation.
16.5 For the purpose of this Addendum, time is of the essence. The parties recognize
the limited time available for construction of essential elements of the replacement docks within
the Columbia River and, therefore, shall exert best efforts to promptly perform each party's
responsibilities under this Article 16, and provide such cooperation as necessary to accomplish
the installation of the replacement docks.
Section 2. Article 3, Section 3.1, entitled "Initial Term" shall be and hereby is
amended and shall read as follows:
3.1 Initial Term. This Sublease shall commence on the 15th day of
December, 2012, and shall end at midnight on December 3, 2028, unless
extended as hereinafter provided or unless earlier terminated.
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Boat Basin Sublease Agreement - 2
Section 3. Article 4, Section 4.2 entitled "Rent" shall be and hereby is amended and
shall read as follows:
4.2 Rent. Commencing on January 1, 2013, the monthly rental amount
shall be One Thousand Two Hundred Dollars ($1,200.00); commencing on
January 1, 2014, the monthly rental amount shall be One Thousand Three
Hundred Dollars ($1,300.00); commencing on January 1, 2015, the monthly rental
amount shall be One Thousand Four Hundred Dollars ($1,400.00); the current
monthly rental amount is One Thousand Six Hundred Twenty Dollars and 68/100
1,620.68); and commencing on May 1, 2018, the rental amount shall be Two
Thousand Five Hundred Dollars ($2,500.00) during the remainder of the initial
term as identsMMin Section above.
en ct 12,1 3 i J W 2- b
Section 4. Article 7, Section 7.2, entitled "Fire and Casualty Insurance" shall be and
hereby is amended and shall read as follows:
7.2 Fire and Casualty Insurance. Columbia, as an operating expense,
shall maintain and keep on all of its personal property, improvements, and
alterations, in, on or about the Premises, including, but not limited to, buildings,
structures, and other improvements thereon, a policy of standard fire, casualty,
and extended or other coverage insurance to the extent of 100% of their full
replacement value, without reduction for depreciation of Columbia's
improvements or alterations if damaged, with the loss payable to the City and
Columbia as their interest may appear. The City shall maintain and keep on its
docks (open and covered), including improvements and alterations with the
Premises, a policy of standard fire, casualty, and extended or other coverage
insurance to the extent of 100% of their full replacement value, without reduction
for depreciation of the City's improvements or alterations if damaged, and shall
apply such proceeds for the reconstruction of the damaged dock.
Section 5. Article 5, entitled "Remediation and Capital Development Plan" shall be
amended to include a new section 5.4, so read as follows:
5.4 During the remainder of this lease, Columbia, at its own expense,
will perform the improvements as provided in in Exhibit F, attached hereto and
incorporated by this reference.
Section 6. Remaining Terms and Conditions. Except to the extent as modified above
by Article 16 regarding the replacement docks, as affecting Article 12.1.13 "Alterations,
Improvements and Changes Permitted"; Article 12.1.D. "Disposition of New Improvements; and
Article 12.1.E; and as amended by Sections 2, 3, 4 and 5 above, all remaining terms and
conditions of the Boat Basin Sublease Agreement of March 7, 2013, shall remain in full force
and effect. To the extent as modified by this Addendum, Exhibit B "Inventory" and Exhibit E
Capital Development Plan" (and its supplement thereto) are amended consistent herewith.
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Boat Basin Sublease Agreement - 3
Section 7. This Addendum shall take full force and effect on the 1 st day of May,
2018.
IN WITNESS WHEREOF, the Parties have hereunto set their hands as of the date first
written above.
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Boat Basin Sublease Agreement - 4
CITY OF PASCO
By,
ave abell,it ager
APPROVED AS TO FORM:
Leland B. Derr, City Attorney
STATE OF WASHINGTON )
SS
County of Franklin )
JT&T, LLC
d/l1/a Columbia fine Center
By;--
mes Toroni, Pr s dent
AP VE AS T tBy:
rent Dille, Attorney for JT , LLC
On this day personally appeared 'before me DAVE LABELL, City Manager for the City
of Pasco, Washington, described in and who executed the within and foregoing instrument, and
acknowledged that lie signed the same as his free and voluntary act and deed for the uses and
purposes therein mentioned.
d and official seal thisr day of _, 2018.
TONI L. ZUNKER
NOTARY PUBLIC
STATE OF WASHINGTON
COMMISSION EXPIRES
MARC! 3, 2020
STATE OF WASFIINGTON )
ss
County of Franklin )
Notary Public in aid for the
Residing at -•Q.
My Commission Expires —
Washington
On this day personally appeared before me JAMES TORONI, President of JT&T, LLC,
d/b/a Columbia Marine Center, 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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Addendum No. 1
Boat Basin Sublease Agreement . 5
and official seal this,21,`'day of
Notary Public in and for the State o
Residing at
My Commission Expires
2018.
CITY OF PASCO
By.
ave Zabell, it ager
APPROVED AS TO FORM:
By.
Leland B. Kerr, City Attorney
STATE OF WASHINGTON )
ss
County of Franklin )
JT&T, LLC
d/b/a Columbia ne Center
By. i7 L
mes Toroni, Presiden
OVED AS TO FORM:
Brent Dille, Attorney for JT&T, LLC
On this day personally appeared before me DAVE ZABELL, City Manager for the City
of Pasco, Washington, 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.
d and official seal this day of u , 2018.
TONI L. ZUNKER
NOTARY PUBLIC
STATE OF WASHINGTON
COMMISSION EXPIRES
MARCH 3, 2020
STATE OF WASHINGTON )
ss
County of Franklin )
Notary Public in apid for the
Residing at \1
My Commission Expires
of Washington
On this day personally appeared before me JAMES TORONI, President of JT&T, LLC,
d/b/a Columbia Marine Center, 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.
and official seal this`day,,of
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FO nna aN`G
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WASN`
Addendum No. 1
Boat Basin Sublease Agreement - 5
Notary Public in an`d for the State o
Residing at 60, /2 a, . ,.
My Commission Expires
2018.
EXHIBIT F
Install video surveillance for security.
Landscaping the point to the right of the building and putting dedicated parking in for the fire
department.
Landscape the left side of the building along the side.
Install electric front sliding gate for access to the marina with security codes, cards, fobs.
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Boat Basin Sublease Agreement - 6