Loading...
HomeMy WebLinkAbout4563 Resolution - INATAI Founation 2025 Post Office Lease Resolution – Lease Arg for Storage at Post Office - 1 RESOLUTION NO. 4563 A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, AUTHORIZING THE CITY MANAGER TO EXECUTE A 28-MONTH LEASE AGREEMENT BETWEEN INATAI FOUNDATION AND THE CITY OF PASCO FOR STORAGE SPACE AT 403 W. LEWIS ST, PASCO, WA. WHEREAS, the City of Pasco (City) in 2021 entered into a Lease Agreement with Group Health Foundation, now named INATAI Foundation, for Office Space at 403 W. Lewis, with the first Lease term through May 31, 2027; and WHEREAS, the INATAI Foundation has expressed need for additional operation storage space and requested to lease additional space at the current location; and WHEREAS, both the City and INATAI Foundation desire to enter this Lease Agreement for storage space at the Premises; and WHEREAS, this Lease Agreement will be co-termed with the current office space lease to include both original termination date and any optional renewal terms for Premises; and WHEREAS, the City Council of the City of Pasco, Washington, has after due consideration, determined that it is in the best interest of the City of Pasco to enter into the Lease Agreement with INATAI Foundation at the Premises. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: That the City Council of the City of Pasco approves the terms and conditions of the lease agreement between INATAI Foundation and the City of Pasco; a copy of which is attached hereto and incorporated herein by reference as Exhibit A. Be It Further Resolved, the City Manager of the City of Pasco, Washington is hereby authorized, empowered, and directed to sign and execute said Lease agreement on behalf of the City of Pasco; and to make minor substantive changes necessary to execute the Lease. Be It Further Resolved, that this Resolution shall take effect immediately. Resolution – Lease Arg for Storage at Post Office - 2 PASSED by the City Council of the City of Pasco, Washington, on this 3rd day of February, 2025. _____________________________ Pete Serrano Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Debra Barham, MMC Kerr Ferguson Law, PLLC City Clerk City Attorneys 403 W Lewis St, Suite A – Lease Agreement INATAI Foundation Page 1 of 14 LEASE AGREEMENT Pasco Post Office - 403 W. Lewis St., Suite A, Pasco, WA 99301 Interior basement Storage - INATAI Foundation PARTIES. This Lease Agreement ("Lease") is made and entered into effective as of February 03, 2025 (the "Effective Date"), by and between the CITY OF PASCO, a municipal corporation ("City") and INATAI FOUNDATION, a Washington nonprofit corporation ("Lessee"). 1. PREMISES. The City hereby leases to Lessee that certain premises located in the Pasco Post Office (the "Building") located at 403 W. Lewis Street, Suite A, in the City of Pasco, County of Franklin, State of Washington, as legally described on Exhibit A attached hereto. The leased premises located on the basement floor, as depicted on Exhibit B attached hereto, consisting of approximately 142 square feet, more or less (referred to as the "Premises"), together with all improvements thereon and appurtenances thereto, including the nonexclusive right to use the Common Areas of the Building in common with others. The term "Common Areas" means all areas, facilities and building systems that are provided and designated from time to time by the City for the general non-exclusive use and convenience of Lessee with other lessees and which are not leased or held for the exclusive use of a particular lessee. The City grants to Lessee 24-hour a day ingress and egress to and from the Premises to adjoining public streets and the right to use in common with all other persons entitled to use the same all parking, public entrances, lobbies, hallways, stairways, elevators and other Common Areas. 2. TERM. This Lease shall be in full force and effect upon delivery of the Premises from the City to Lessee, in the Delivery Condition (as defined below) (the "Commencement Date"), which Commencement Date is agreed to be February 03, 2025, through May 31, 2027, unless terminated as provided herein (the "Original Term"). The Lessee shall have three (3) options to renew for one (1) year each (each, a "Renewal Term") upon full & faithful performance of terms & conditions of the Lease so long as Lessee provides the City written notice of its exercise of such option not less than three (3) months prior to the expiration date of the Original Term (or applicable Renewal Term). The terms and provisions for a Renewal Term shall be identical with the Original Term, except as to the rent, described below. The Original Term and each Renewal Term(s) are together known as the "Term". 3. RENT AND OTHER CHARGES. Rent shall be pro-rated for the first month should the Lease commence on any other day than the first day of the month. Subsequent monthly rent payments 403 W Lewis St, Suite A – Lease Agreement INATAI Foundation Page 2 of 14 shall be payable in advance, on or before the first day of each month of the Term. Rent shall be payable to the City without demand and without deduction, setoff or counterclaim. 3.1. Rent. Base Rent rates will be in the amounts stipulated as set forth below. Lessee shall pay a late service charge on all past due rent at the rate of five percent (5%) of the unpaid amount, but in no event higher than the legal limit. Increase in rent percentages are as shown below. Year Square footage X Annual Rate Annual Rate Monthly Rate Commencement Date - Feb 03, 2025 142 sq. ft. X $18 $2,556 $213.00 June 1, 2025 - May 31, 2026 142 sq. ft. X $18.54 $2,632.68 $219.39 June 1, 2026 - May 31, 2027 142 sq. ft. X $19.10 $2,712.20 $226.02 June 1, 2027-May 31, 2028* 142 sq. ft. X $19.67 $2,793.14 $232.76 June 1, 2028 - May 31, 2029* 142 sq. ft. X $20.26 $2,876.92 $239.74 June 1,2029-May31, 2030* 142 sq. ft. X $20.87 $2,963.54 $246.96 * Indicates Renewal Term 3.2. Leasehold Excise Tax. In addition to the monthly rent amount, Lessee shall also pay statutory Leasehold Excise Tax (currently 12.84%, or as otherwise increased/decreased by statute, of each monthly rent payment), which Excise Tax shall be paid to the City in the manner required in this Section 5 of this Lease by the first day of each month, upon Lessee's receipt of a statement of such Excise Tax amount due from the City. Initial tax amount will be determined by the City and shall increase as the base rent increases and/or as the statutory percentage changes. Year Base Rent per month Leasehold tax Total Monthly Rent Leasehold Excise Tax Commencement Date - Feb 03, 2025 $213 X 12.84% $27.35 $240.35 June 1, 2025 - May 31, 2026 $219.39 $28.17 $247.56 June 1, 2026 - May 31, 2027 $226.02 $29.02 $255.04 June 1, 2027-May 31, 2028* $232.76 $29.89 $262.65 June 1, 2028 - May 31, 2029* $239.74 $30.78 $270.52 June 1,2029-May31, 2030* $246.96 $31.71 $278.67 * Indicates Renewal Term 3.3. Security Deposit. 403 W Lewis St, Suite A – Lease Agreement INATAI Foundation Page 3 of 14 3.3.1. Upon execution of this Lease, Lessee shall deposit the sum equal to one (1) month’s rent with the City as a security deposit. This sum shall guarantee Lessee's performance of its obligations hereunder. If Lessee fails to perform any of its obligations hereunder, the City may apply the appropriate portion of the security deposit to cure the default or to compensate the City for damage it has sustained as a result of Lessee's default. In the event that the City deems it necessary to use monies from the Security Deposit in order to secure Lessee's compliance with the provisions of this lease, the City shall provide Lessee written notice of the City's intent to apply monies from the deposit for such purpose. 3.3.2. If any portion of the deposit is so used, Lessee shall, within fifteen (15) days of demand, deposit sufficient cash with the City to restore the security deposit to its original amount. 3.3.3. If Lessee fully performs its obligations under this Lease, the security deposit or any balance thereof shall be returned to the Lessee at the expiration of this Lease, or after Lessee has vacated the Premises, whichever is later, provided that the City may retain the security deposit until such time as any amount due from the Lessee to the City has been paid in full. 4. USE OF PREMISES. The Premises shall be used by Lessee for storage uses and for no other use or purpose without the City's prior written consent. 5. RESTRICTIONS ON USE. In connection with the use of the Premises, Lessee shall: 5.1. Refrain from any use that would be offensive to other lessees at the Premises or users of neighboring premises or that would tend to create a nuisance or damage the reputation of the Premises. 5.2. Not permit its customers or clients to cause litter, garbage or other refuse or debris to accumulate on the Premises except in suitable garbage containers. 5.3. Lessee shall not erect signage without the City's prior written consent, not to be unreasonably withheld, and as is consistent with Pasco Municipal Code Title 17. 6. CARE OF PREMISES. Lessee shall use ordinary care in its use of the Premises, and repair any damage caused by its negligence, reasonable wear and tear excepted. 7. THE CITY'S REPRESENTATIONS, WARRANTIES AND COVENANTS. the City hereby represents and warrants to Lessee that it has the full right, power and authority to lease the Premises to Lessee. The City represents and warrants to Lessee that the consent or approval 403 W Lewis St, Suite A – Lease Agreement INATAI Foundation Page 4 of 14 of any third party, including, without limitation, a lender, is not required with respect to the execution of this Lease, or if any such third-party consent or approval is required, the City has obtained any and all such consents or approvals. Except as specifically set forth herein, neither the City nor its agents have made any representations with respect to the Premises. No rights, easements, or licenses are acquired by Lessee 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 Lessee shall be conclusive evidence that the Premises were in good condition at the time possession was taken. LESSEE ACCEPTS THE PREMISES AS-IS, except that upon delivery the Premises (including all access points to the Premises) will be in sound condition both structurally and mechanically; water tight; with all systems and utilities in good working order and stubbed to the Premises; free of materials harmful to persons or property (including toxic molds, biotoxins, radon, asbestos and other Hazardous Materials regulated by law); broom clean and free of all debris, furniture, fixtures, and equipment; and free of latent defects (the "Delivery Condition"). 8. QUIET ENJOYMENT. The City agrees that so long as Lessee observes and performs all of the agreements and covenants required of it hereunder, Lessee shall peaceably and quietly have, hold and enjoy the Premises for the Lease term without any encumbrance, interference or hindrance by the City, its agents or employees. 9. UTILITIES, REPAIRS AND MAINTENANCE. The City shall provide, at its own expense, all utilities serving the Premises, including electrical service, heating and cooling, water, sewer, and gas. The City shall also maintain and repair the Premises, Building and Common Areas, except for maintenance or repairs required as a result of Lessee's negligence. Lessee shall give the City access to the Premises at all reasonable times upon not less than forty-eight (48) hours advance notice (except in case of an emergency in which case no notice shall be necessary), without charge or diminution of rent, to enable the City to examine the same and to make such repairs, additions and alterations as the City may deem advisable or is required hereunder, provided that the City shall use commercially reasonable efforts to minimize any interference with Lessee's business, and following completion of the work, and shall return Lessee's fixtures, property and equipment to the original locations and condition. Lessee shall have access to the Premises and all parking 24-hours per day, 365 days per year. 10. TAXES. Lessee shall pay all taxes assessed against and levied upon Lessee's trade fixtures, and all other personal property of Lessee contained in or around the Premises. 11. INSURANCE AND INDEMNITY. 11.1. Workers' Compensation. The Lessee 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, 403 W Lewis St, Suite A – Lease Agreement INATAI Foundation Page 5 of 14 $500,000 Bodily Injury by disease, policy limit, and $500,000 Bodily Injury by disease, each employee. 11.2. General Liability. The Lessee must maintain insurance at least as broad as Insurance Services Office (ISO) occurrence form CG 00 01 and shall cover premises and contractual liability. The City of Pasco shall be named as an additional insured on Lessee's Commercial General Liability insurance policy using ISO Form CG 20 11, Additional Insured - Managers or Lessors of Premises or a substitute endorsement providing at least as broad coverage. Commercial General liability insurance shall be written with limits no less than $2,000,000 each occurrence, $2,000,000 general aggregate. 11.3. Primary Insurance. The Lessee's Commercial General Liability insurance policy or policies are to contain or be endorsed to contain that they shall be primary insurance as respect the City. Any insurance, self-insurance, or self-insured pool coverage maintained by the City shall be excess of the Lessee's insurance and shall not contribute with it. 11.4. Lessee Property Insurance. The Lessee must keep in force for the duration of the Lease a policy covering damages to its property at the Premises including any improvements with no coinsurance provisions. The amount of coverage shall be sufficient to replace the damaged property, loss of use, and must comply with any ordinance or law requirements. 11.5. Hazardous Materials Coverage. Lessee must carry sufficient coverage, to the reasonable satisfaction of the City, 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. 11.6. 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 the City. 11.7. Additional Insured - Certificate of Insurance. The Lessee shall provide, prior to occupancy, evidence of the required insurance in the form of a Certificate of Insurance issued by a company (rated not less than A: VII or better according to Best's), licensed to do business in the state of Washington, which includes all coverages required in this Section 11. Lessee will list the City as an Additional Insured on the Commercial General Liability policy. 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 City. 11.8. State-required Insurances. Lessee shall carry insurance coverage that satisfies all Washington State required insurances at the required limits and shall list the City as Additional Insured on all such policies, as applicable. 403 W Lewis St, Suite A – Lease Agreement INATAI Foundation Page 6 of 14 11.9. 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. 11.10. City's Insurance. The City shall maintain so called "all risk" property insurance on the Building at one hundred percent (100%) of replacement cost, together with such other insurance coverage as the City may elect to maintain. If the City is a member of a self- insured risk pool membership will satisfy listed requirements. 11.11. Indemnity. Subject to Section 11.12 below, each party hereby agrees to indemnify, defend and hold harmless the other party, its affiliates, and their respective directors, employees and agents from and against any and all third party suits, claims, actions, demands, liabilities, expenses and/or losses, including reasonable legal expenses and reasonable attorneys' fees ("Losses") to the extent such Losses result from any of the following, but except to the extent caused by the negligence or misconduct of the other party: (a) breach of warranty by the indemnifying party contained in this Lease; (b) breach of this Lease by the indemnifying party; or (c) negligence or willful misconduct of the indemnifying party, or their respective directors, employees and agents in connection with this Lease. 11.12. Waiver of Subrogation. The City and Lessee hereby release the other from any and all liability or responsibility to the other or anyone claiming through or under them by way of subrogation or otherwise for any loss or damage to property caused by fire or any other perils insured in policies of property insurance covering such property, even if such loss or damage shall have been caused by the fault or negligence of the other party, or anyone for whom such party may be responsible. All of Lessee's and The City's policies of property insurance shall contain waiver of subrogation endorsements in favor of the other party and copies of same shall be delivered upon request. 11.13. Duty to Maintain Insurance. Failure on the part of the Lessee to maintain the insurance as required shall constitute a material breach of lease, upon which the City may, after giving five business days' notice to the Lessee to correct the breach, terminate the Lease or, at its discretion, procure or renew such insurance and pay any and all premiums in connection therewith, with any sums so expended to be repaid to the City on demand. 11.14. Full Availability of Limits. If the Lessee maintains higher insurance limits than the minimums shown above, the City shall be insured for the full available limits of Commercial General and Excess or Umbrella liability maintained by the Lessee, irrespective of whether such limits maintained by the Lessee are greater than those required by this Lease or whether any certificate of insurance furnished to the City evidences limits of liability lower than those maintained by the Lessee. 403 W Lewis St, Suite A – Lease Agreement INATAI Foundation Page 7 of 14 12. DAMAGE OR DESTRUCTION; CONDEMNATION. If the Premises are damaged or destroyed in whole or in material part; or if the Premises or a substantial portion thereof are taken by condemnation or under the power of eminent domain, the City or Lessee may, at its option, elect to terminate this tenancy. If the Lease is not so terminated, the City shall promptly make any and all necessary repairs. 13. SURRENDER AT EXPIRATION. Upon expiration of the Lease term or earlier termination on account of default, Lessee shall surrender the Premises in good condition and repair, reasonable wear and tear excepted, damage by the City, casualty and condemnation excepted. 14. DEFAULT. Lessee shall be in default of this Lease if it (a): fails to pay any sum, including Base Rent, due under this Lease following five business (5) days' written notice from the City of the failure to pay, or (b) fails to comply with any term or condition or fulfill any obligation of the Lease and the failure continues for a period of 30 days after written notice by the City to Lessee, provided, however, that if the nature of Lessee's obligation is such that more than thirty (30) days are required for performance, then Lessee shall not be in default if Lessee commences performance within such thirty (30) day period and thereafter diligently prosecutes the same to completion. In the event of a default, this Lease may be terminated at the option of the City by written notice to Lessee. Whether or not the Lease is terminated by the election of the City or otherwise, the City shall be entitled to recover damages from Lessee and the City may retake possession of the Premises and reserves any other remedy available to the City under the applicable law; provided, however, that the City shall: (a) use good faith, commercially reasonable efforts to mitigate its damages arising out of any Lessee default; (b) not be entitled to accelerate the payment of Rent; (c) not be entitled to a "landlord's lien" against any of Lessee's personal property or trade fixtures; and (d) not be entitled to dispossess Lessee of the Premises pursuant to any "lock-out" or other non-judicial remedy. Under no circumstances shall Lessee be required to waive any defenses, counterclaims or rights it may have under applicable law to cure defaults or prevent Lease termination or eviction. 14.1. City's Default. Should the City default in the performance of any covenants and/or conditions on the City 's part herein contained, and if such default is not cured within thirty (30) days after written notice by the Lessee to the City thereof, except in case of an emergency in which case no notice shall be necessary and no opportunity to cure shall apply, or if such default cannot be cured within thirty (30) days, then if the City does not notify Lessee of delay or does not commence within such thirty (30) days to cure said default and cure the same with all reasonable dispatch, Lessee shall have the right to cure said default for the account of the City, and the City shall upon demand, reimburse Lessee for Lessee's costs and expenses incurred in connection therewith. Nothing contained in this Paragraph 14.1 shall be construed so as to abridge any rights otherwise available to Lessee at law or in equity. 403 W Lewis St, Suite A – Lease Agreement INATAI Foundation Page 8 of 14 15. MISCELLANEOUS. 15.1. Environmental Compliance by Lessee. Lessee shall not cause or permit any Hazardous Material to be brought upon, kept or used in or about the Premises. The City, to its knowledge, as of the Effective Date hereby represents and warrants that (a) the Premises and Building do not contain Hazardous Materials; (b) the Premises and Building have not been used in violation of any environmental laws; and (c) the Premises and Building are in compliance with environmental laws as of the Commencement Date. Lessee shall have no responsibility for any Hazardous Materials that: (i) existed on the Premises before the Commencement Date; or (ii) were caused by the City, its agents, employees, or contractors; or (iii) that Lessee can demonstrate migrated onto the Premises from a source off-Premises that was not caused by Lessee. As used herein, the term "Hazardous Material" means any hazardous or toxic substance, material, or waste which is or becomes regulated by any local governmental authority, the state of Washington or the United States government. The term "Hazardous Material" includes, without limitation, any material or substance that is: (a) defined as a "hazardous waste," "extremely hazardous waste," "restricted hazardous waste," "hazardous substance," "hazardous material," or "waste" under any federal, state or local law; (b) petroleum; and (c) asbestos. The provisions of this Section 15.1, including, without limitation, the indemnification provisions set forth herein, shall survive any termination of this Lease. 15.2. 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. 15.3. Notices. Any notice will be deemed delivered: (a) when personally delivered; (b) when delivered by facsimile or electronic mail transmission (in either case, with confirmation of delivery); (c) on the day following delivery of the notice by reputable overnight courier; or (d) on the day following delivery of the notice by mailing by certified or registered U.S. mail, postage prepaid, return receipt requested; and in any case shall be sent to the applicable party at its address as set forth in Section 16 below. Addresses for notices may be changed from time to time by written notice to all other parties pursuant to this Section 15.3. 15.4. Time of Essence. Time is of the essence of the performance of each of the obligations under this Lease. 15.5. Recording of Lease. This Lease need not be recorded. 15.6. Rules and Regulations. Lessee shall observe reasonable Rules and Regulations established and amended by the City for the Premises from time to time upon 30 days advance, written 403 W Lewis St, Suite A – Lease Agreement INATAI Foundation Page 9 of 14 notice from the City to Lessee so long as any such rules, amendments or supplements do not adversely affect Lessee's use of the Premises or expenses incurred under this Lease. Lessee shall have a reasonable opportunity to comment on proposed rules and regulations. The Rules are in addition to and shall not be construed to modify or amend this Lease in any way, and to the extent the Rules conflict with the Lease the terms of the Lease shall control. 15.7. Assignment. Lessee shall not assign or transfer this Lease without the City's prior consent, which consent shall not be unreasonably withheld, conditioned, or delayed. Notwithstanding anything in this Section 15.7 to the contrary, Lessee may, without the City's consent, but after providing written notice to the City, assign this Lease or sublet all or any portion of the Premises to: (a) any Related Entity (as defined below); (b) to a person or entity acquiring all or substantially all of Lessee's assets; (c) to a person or entity that acquires by merger, consolidation, or otherwise all or substantially all of the ownership interests in and control of Lessee. "Related Entity" means any parent company, subsidiary, affiliate or related corporate entity of Lessee that controls, is controlled by, or is under common control with Lessee. 15.8. Alterations, Improvements and Additions. Lessee shall make no alterations, improvements or additions to the Premises without the City's prior consent. The City may not withhold or condition its consent unless the making or installation of the improvements or alterations (a) adversely affects the Building structure, (b) adversely affects the Building systems, (c) do not comply with applicable laws, (d) affect the exterior appearance of the Building, or (e) a Design Problem. 15.9. 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 City 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. 15.10. Responsible Party. Following is the name and phone number of Lessee's representative which may be contacted in an emergency: Brandy Dukes, Vice President of Operation, (630) 920-4780. 15.11. Lessee to Supply Information. The Lessee shall, whenever requested by the City to do so, furnish to the City full and correct contact information for staff members working at the Premises, as may be requested by the City. 15.12. Parking. Lessee, its employees, agents, contractors, and invitees, shall have the use in common with other lessees of the Building of the parking lot on the Property at no 403 W Lewis St, Suite A – Lease Agreement INATAI Foundation Page 10 of 14 additional cost. As of the signing of this lease there are four (4) unreserved parking stalls available for Building lessees. 15.13. Dispute Resolution. In the event of a dispute regarding the terms, interpretation or breach of this Agreement, the parties shall first meet in a good faith to resolve the dispute. In the event the dispute cannot be resolved by agreement of the parties either with or without the assistance of mediation, said despite shall be resolved by arbitration pursuant to RCW 7.04A, as amended, with both parties waiving the right of a jury trial upon trial de novo, with venue being placed in Pasco, Franklin, County, Washington. The substantially prevailing party shall be entitled to its reasonable attorney fees and costs as additional award and judgement against the other. 15.14. Discrimination. Lessee 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. 15.15. Lessee’s Property. The City agrees that all furnishings, furniture, fixtures, equipment, inventory, merchandise, goods, chattels, trade fixtures, signage, appliances and other personal property of Lessee at any time located on the Premises, (collectively, "Lessee's Property"), shall be and at all times remain the sole and absolute property of Lessee, regardless of whether the same (x) is affixed to the Premises, or (y) may now or hereafter be regarded as a fixture or as property of the City by operation of law or otherwise. Lessee shall have the right at any time and from time to time during the Term to remove any Lessee's Property from the Premises; provided, however, that Lessee shall repair all damage caused by such removal of Lessee’s Property. 15.16. Successors. Subject to Section 15.7, this Lease shall bind and inure to the benefit of the parties, their respective heirs, successors, and permitted assigns. 15.17. Time of the Essence. Time is of the essence of each and every provision hereof. If the final date of any period of time set forth herein occurs on a Saturday, Sunday or legal holiday, then in such event, the expiration of such period of time shall be postponed to the next day which is not a Saturday, Sunday or legal holiday. 15.18. Force Majeure. Except for the Commencement Date, the City and Lessee shall be excused for the period of delay in the performance of any of their obligations hereunder, and shall not be considered in default, and all time periods permitted hereunder for the performance of any such term, covenant, or condition shall be tolled on a day-for-day basis upon written notice from either party to the other of such party's inability to perform or satisfy any such term, covenant, or condition of this Lease due to a Force Majeure. For purposes hereof, "Force Majeure" means strikes, lockouts, labor disputes, shortages of labor, fire or other 403 W Lewis St, Suite A – Lease Agreement INATAI Foundation Page 11 of 14 casualty, Acts of God, or any other cause beyond the reasonable control of a party, including, but not limited to, events of nature (including snow or ice storm, tornadoes, windstorms, flooding and severe weather), civil disturbances, interruptions by government or court order, valid orders of any regulatory body having proper jurisdiction, pandemics and epidemics, wars, riots, inability to secure materials (including inability to secure materials by reason of allocations promulgated by authorized governmental agencies but not including any such inability to obtain materials due to cost), and inability to obtain permits due to any of the foregoing. 15.19. Counterparts. This Lease may be executed in counterparts all of which taken together shall be deemed one original when executed by both parties. Furthermore, the parties agree that (i) this Lease may be transmitted between them by electronic mail and (ii) electronic signatures (including electronic copies of manual signatures) shall have the effect of original signatures relative to this Lease. 16. NOTICES. Notice provided for in this Agreement shall be sent by: 16.1. Personal Service upon the contacts in 16.2 16.2. The contacts for the purpose of this Agreement Shall be: 16.2.1. For the City: Jesse Rice, or his/her designee Parks & Recreation Director 525 N 3rd Ave Pasco, WA 99301 ricej@pasco-wa.gov 16.2.2. For the Lessee: Brandy Dukes, or his/her designee Vice President of Operations 801 Third Ave, Suite 220 Seattle, WA 98104 17. Entire Agreement. This Lease and the covenants and agreements set forth herein are and shall constitute the entire agreement between the parties. None of these terms, covenants, and agreements of this Lease shall in any manner be altered, waived or changed, except by written instrument signed and delivered by the parties hereto. 18. Authorization. By signature below, each party warrants that they are authorized and empowered to execute this Agreement binding the City and the Lessee respectively. 403 W Lewis St, Suite A – Lease Agreement INATAI Foundation Page 12 of 14 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the date first written above. CITY OF PASCO, WASHINGTON LESSEE – INATAI FOUNDATION City Manager Brandy Dukes, Vice President of Operations STATE OF WASHINGTON ) :ss County of Franklin ) On this day personally appeared before me __________________, 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. GIVEN under my hand and official seal this ____ day of ____________, 2025. _______________________________________ Notary Public in and for the State of Washington Residing at ______________________________ My Commission Expires____________________ STATE OF WASHINGTON ) :ss County of Franklin ) On this day personally appeared before me Brandy Dukes, Vice President of Operations for the INATAI Foundation, 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. GIVEN under my hand and official seal this ____ day of ____________, 2025. _______________________________________ Notary Public in and for the State of Washington Residing at ______________________________ My Commission Expires___________________ 403 W Lewis St, Suite A – Lease Agreement INATAI Foundation Page 13 of 14 EXHIBIT A Legal Description Legal description for property at the address of 403 W Lewis St, Pasco WA as follows: That part of School Block Addition to the City of Pasco, Washington, described as lots Numbers One(1), Two(2), Three(3) and Four (4) and that part of Lot Number Five (5) in said School Block Addition described as follows beginning at the southeasterly corner of said lot Five as the point of beginning; thence southwesterly along the South line of said lot, a distance of twenty (20) feet; thence in a northeasterly direction, parallel with the West line of said lot a distance of one hundred and forty (140) feet to the alley in said block, thence along the North line of said lot Five, a distance of twenty (20) feet to the northeasterly corner of said lot, thence, in a southeast erly direction, along East line of said lot, a distance of one hundred and forth (140) feet, to the point of the beginning; all according to the plat of said School Block Addition on file in the office of the County Auditor of all according to the plat of said School Block Addition on file in the office of the County Auditor of Franklin County, Washington and recorded in Book No. 23, at Page 135 of Deed Records said lots of parcels of land lying and being in Section Twenty-nine (29), Township Nine (9) North of Range thirty (30) East of the Willamette Meridian. 403 W Lewis St, Suite A – Lease Agreement INATAI Foundation Page 14 of 14 EXHIBIT B Premises