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Home My WebLink About4569 Resolution - Head Start MLK Lease Addendum No. 3Resolution – Head Start MLK Lease Addendum 3 - 1 RESOLUTION NO. 4569 A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, AUTHORIZING THE INTERIM CITY MANAGER TO EXECUTE AN ADDENDUM NO. 3 TO THE MUNICIPAL LEASE AGREEMENT WITH BENTON-FRANKLIN HEAD START FOR THE TEMPORARY USE OF SPACE AT THE KURTZMAN BUILDING DURING RENOVATIONS OF THE MARTIN LUTHER KING COMMUNITY CENTER. WHEREAS, the City of Pasco (City) entered into a Municipal Lease Agreement with Benton-Franklin Head Start on October 4, 2010, for the use of designated space at the Martin Luther King Community Center; and WHEREAS, the City and Benton-Franklin Head Start previously amended the lease through Addendum No. 1 on October 1, 2015, and Addendum No. 2 on March 30, 2021; and WHEREAS, the City is preparing for necessary construction and renovations of the Martin Luther King Community Center, scheduled to take place in 2025, which impacts the leased space currently occupied by Benton-Franklin Head Start; and WHEREAS, the City has identified available temporary space at the Kurtzman Building, located at 331 South Wehe Ave, Pasco, Washington, to accommodate Benton-Franklin Head Start’s continued operations during the renovation period; and WHEREAS, Addendum No. 3 to the Municipal Lease Agreement provides for the temporary relocation of Benton-Franklin Head Start’s leased space, establishes a revised rental agreement, and ensures continuity of service during the construction phase; 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 Addendum No. 3 to the Municipal Lease Agreement with Benton-Franklin Head Start. 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 Addendum No. 3 to the Municipal Lease Agreement between the City of Pasco and Benton-Franklin Head Start, as attached hereto and incorporated herein as Exhibit A. Be It Further Resolved, that the Interim City Manager of the City of Pasco, Washington, is hereby authorized, empowered, and directed to execute said Addendum No. 3 on behalf of the City of Pasco; and to make minor substantive changes as necessary to execute this Addendum. Be It Further Resolved, that this Resolution shall take effect immediately. Resolution – Head Start MLK Lease Addendum 3 - 2 PASSED by the City Council of the City of Pasco, Washington, on this 18th day of February, 2025. _____________________________ Pete Serrano Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Debra Barham, MMC Kerr Ferguson Law, PLLC City Clerk City Attorneys Page 1 of 4 MARTIN LUTHER KING COMMUNITY CENTER MUNICIPAL LEASE AGREEMENT ADDENDUM NO. 3 THIS ADDENDUM NO. 3 to the Municipal Lease Agreement between the City of Pasco, “Lessor” and Benton-Franklin Head Start, “Lessee”, together referred to as the “Parties”, for the use of the designated space at the Martin Luther King Community Center (original agreement made on October 4, 2010, with Addendum No. 1 on October 1, 2015, and Addendum No. 2 on March 30, 2021) is entered into on this date ________________________________. IN CONSIDERATION of the mutual covenants set out in the original agreement, and the impending construction/renovation of the Martin Luther King Center taking place in 2025, which renovations include the following space leased by Lessee as described in Addendum #1 and pictured in “Exhibit A” of this addendum: • 4,700 of the 4,900 square feet of exclusive leased space, and • The 228 square feet of shared leased space with the YMCA The Parties agree that Lessee will abandon use of the remaining 200 square feet set forth in Addendum #1 of the original agreement and the Parties further agree to changes as follows: 1. Description of Leased Premises: Lessor hereby leases to Lessee approximately 2,628 square feet of space, as shown on the attached “Exhibit B”, at the Kurtzman Building, located at 331 South Wehe Ave, Pasco, Washington; on the NE corner of the intersection of S. Wehe Avenue and E. Alton Street, 2. Term: This lease shall commence on February 3, 2025, and shall continue until the completion of the above-mentioned construction/renovation of the Martin Luther King Center. At which time the Parties will in good faith negotiate terms of a new Municipal Lease Agreement of the newly renovated space previously leased to Lessee by Lessor in the original October 4, 2010, agreement. 3. Rent: Lessee shall pay Lessor rent for the use of the Premises. The rent payment amounts shall be as follows over the life of the agreement: Monthly Rent: $2,737.50. (based on a $12.50/sf valuation) Leasehold excise tax is levied pursuant to Chapter 82.29A RCW and shall be above and beyond the rental amount(s) listed above. The Lessee shall faithfully pay this tax when due unless Lessee provides the Lessor with proof of exemption from 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. Rent and Leasehold tax (if applicable) shall be 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 one-percent per month until paid in full. Page 2 of 4 If 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. Ope rating costs include maintenance services, utilities and other direct out-of-the pocket expenses of the Lessor for maintenance and operation of the Kurtzman Building facility and that portion of the Martin Luther King Community Center facility leased by Lessee as described above. 4. Maintenance and Improvements by 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. All terms and conditions of the October 4, 2010, Municipal Lease; the October 1, 2015, Addendum #1; and the March 30, 2021, Addendum #2 between the Parties, not inconsistent with the terms above, shall remain in full force and effect. IN WITNESS WHEREOF, the Parties hereto have signed this Amendment to the Municipal Lease on the date(s) written below. The City of Pasco By: ________________________________ Dave Zabell Interim City Manager Benton Franklin Head Start Signed: _______________________________ Name: ________________________________ Title: _______________________________ Approved as to Form By:____________________________ Kerr Ferguson Law, PLLC Page 3 of 4 Page 4 of 4 Exhibit “B” Kurtzman Building Square Footage = 2,628 Women’s Restroom Men’s Restroom Storage Room (Exterior Access) Entry Hallway Office Area Kitchen Main Multipurpose Room Storage Closet Secondary Multipurpose Room