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HomeMy WebLinkAboutR-2001-062 Western Materials, Inc. Lease AgreementRESOLUTION NO. R-2001- 62 A RESOLUTION authorizing the City Manager to execute a lease of City -owned property with Western Materials, Inc. WHEREAS, the City of Yakima owns certain property under the Nob Hill Overpass; and WHEREAS, the City has no immediate use for this property, and it is in the best interest of the City of Yakima to lease the property to Western Materials, Inc., now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager is hereby authorized and directed to execute the attached lease with Western Materials, Inc. ADOPTED BY THE CITY COUNCIL THIS `) of April, 2001. ATTEST: J G ri► City Clerk ,g4 ,„Zta ry Place, Mayor LEASE THIS LEASE is made this qt11 day of Ayi,, , 2001, between the CITY OF YAKIMA, WASHINGTON, a municipal corporation, hereinafter referred to as LESSOR, and WESTERN MATERIALS, INC., a Washington corporation, hereinafter referred to as TENANT, on the following terms and conditions: 1. Property Leased: LESSOR hereby leases to TENANT the following -described ground space owned by LESSOR within the City of Yakima, Yakima County, Washington, to -wit: "Ground space directly under the Nob Hill Boulevard overpass, lying between bent number 12 thereof and the easterly right-of-way line of the Northern Pacific Railway Company, together with a strip of ground approximately ten feet wide on the northerly side of the above-described area and abutting thereon, the northerly boundary of said approximately ten foot strip being a common boundary between the leased property and the property owned by tenant situated northerly and of and abutting on the above-described leased property." 2. Term: The term of this Lease shall be for a period of ten (10) years, commencing April 3, 2001 and terminating December 31, 2010, at midnight. 3. Rent: TENANT agrees to pay annual rent to LESSOR in the amount of three hundred dollars ($300.00) per year. Rent shall be paid annually in advance on or before the first day of January of each year for the entire lease term. 4. Use of Premises: The leased property shall be used by TENANT for the purpose of storing construction materials and equipment and for no other purposes. The storage of flammable materials is prohibited. 5. Taxes: TENANT shall pay all general taxes and assessments levied against the leased property during the term of this Lease. TENANT shall timely pay any and all business taxes levied against TENANT on account of the conduct of TENANT'S business on the leased property. 6. Insurance: TENANT shall, during the entire term of the Lease, keep in full force and effect a policy or policies of public liability or property damage insurance with respect to the leased premises, sidewalks and the business operated by TENANT and any SUBTENANT OF TENANT in the leased premises, in which the limits of public liability shall not be less than $1,000,000.00 per occurrence and $2,000,000.00 per aggregate, and in which the property damage liability shall not be less than $100,000.00. The policy shall name the LESSOR, lease/ms/32601 1 together with its agents and employees, and TENANT as insured, and shall contain a clause that the insurer will not cancel or change the insurance without first giving LESSOR ten (10) days prior written notice. The insurance shall be in a responsible insurance company or companies chosen by TENANT. 7. Care of Property: TENANT agrees that it has inspected the premises and knows the conditions thereof, and the same are now in good condition. and it agrees and warrants that it will at all times keep the same in as good, clean, and satisfactory condition as the premises are now in, or the condition to which they may be improved, and upon termination of this Lease, it will return the same to LESSOR in as good a condition as the same are now in, or the condition to which they may be improved, less reasonable wear and tear thereof by ordinary use. TENANT further warrants and agrees that it will not commit any waste on said premises nor damage same, nor permit waste or damage by others. It is recognized that TENANT may make certain improvements to the property, and any such improvements made to the leased property shall remain thereon, and LESSOR shall own all such improvements upon the termination of other expiration of this Lease Agreement. 8. Assignment — Subletting: TENANT shall have the right to assign or sublease the leased property but only after receiving the LESSOR'S prior written consent. In the event that TENANT assigns or subleases the leased property pursuant to this paragraph, TENANT shall remain primarily liable for the covenants contained herein. 9. Inspection: LESSOR shall have the right, at all times, to enter upon the leased premises at reasonable times for the purposes of inspecting the leased premises. TENANT hereby grants to the LESSOR an irrevocable license and right of access, by LESSOR'S agents and employees, through, over. and across the adjacent property owned by TENANT for the purpose of inspection and maintenance of the Nob Hill overpass structure and the appurtenant water mains, valves, and other facilities. 10. Forfeiture: Time is of the essence of this Lease. In the event TENANT fails to pay any installment of rent or fails to comply with any other covenant, term or condition of this Lease, the LESSOR may, in addition to any other remedy authorized by law, forfeit this Lease; PROVIDED, however, the LESSOR shall give the TENANT written notice specifying the breach claimed and give the TENANT: (i) Three (3) days to remedy the breach if it involves failure to pay any installment of rent or portion thereof, or vacate the property; or (ii) Three (3) days to quit the property if the breach involves the committing or permitting of waste upon the property, setting up or carrying on any unlawful business on the property, or erecting, suffering, permitting or maintaining any nuisance on the property; or lease/ms/32601 2 (iii) Ten (10) days to remedy the breach if it involves failure or neglect of TENANT to keep or perform any other covenant, term or condition of the Lease. 11. Indemnification of Lessor: TENANT shall protect, defend, indemnify, and hold LESSOR harmless from and against any and all claims, demands, damages. losses, liens, liabilities, penalties, fines, lawsuit, and other proceedings and costs and expenses (including attorney's fees and disbursements), which accrue to or are incurred by LESSOR and arise directly or indirectly from or out of. related to, or in any way connected with (1) any activities on the leased property during TENANT'S possession or use of the property which directly or indirectly result in the property or any other property becoming contaminated with hazardous substances or wastes, (2) the presence, discovery, or cleanup of any hazardous substances released or existing on or under the leased property at any time during TENANT'S possession or use of the property, (3) any third -party claims resulting from TENANT'S use or occupancy of the leased property, or any acts or omissions of TENANT in connection therewith, and (4) any damages or alterations caused to the Nob Hill overpass structure or appurtenances thereto. When used in this Lease Agreement the term "hazardous substance" shall be defined to mean any substance or material defined or designated as hazardous or toxic waste, hazardous or toxic material, a hazardous, toxic or radioactive substance, or other similar term, by any federal, state, or local environmental statute, regulation, or ordinance presently in effect or that may be promulgated in the future, as such statues, regulations and ordinances may be amended from time to time, including, but not limited to, the Federal Resource Conservation Recovery Act of 1976, 42 U.S.C. § 6901 et seq., the Federal Comprehensive Environmental Response, Compensation, and Liability Act of 1980, 42 U.S.C. § 9601 et seq., the Federal Toxics Substances Control Act, 15 U. S. C. § 2601 et seq., the Washington Solid Waste Management — Recover and Recycling Act, RCW Chapter 70.95, and the Washington Model Toxics Control Act, RCW Chapter 70.105D. 12. Effect: This Lease, and all the terms, conditions and covenants thereof, shall inure to the benefit of LESSOR, their successors and assigns, and shall run to and be binding upon TENANT, their successors and assigns. 13. Interpretation: The paragraph headings used herein are for indemnification purposes only, and shall not be construed as modifying or limiting the actual language and contents of the paragraphs themselves. 14. Attorney Fees: In the event of any litigation arising out of the Lease, the prevailing party shall be entitled to a reasonable attorney fee, and venue for any claim shall lie in Yakima County, Washington. 15. Notices: All notices to be given by the parties are to be in writing and may be either served personally or may be deposited in the United States Mail, postage (ease/ms/32601 3 4 prepaid, either registered or certified mail, with certificate of mailing obtained, and shall be given to the last known address of the party to whom the notice is addressed. The effective date of the giving of the notice, or the day from which any time period shall run, shall be the day notice is deposited in the United States Mail, or the date notice is personally served. CITY OF YAKIMA By: R. A. Zais, Jr., City Manager ATTEST: City Clerk WESTERN MATERIAL By: Its: h. A Q Resolution No. R-2001 z6'2-"`-� _ Contract No. 2001-40\�o STATE OF WASHINGTON ) County of Yakima ) This is to certify that on this day personally appeared before me, R. A. Zais, Jr., to me known to be the CITY MANAGE OF THE CITY OF YAKIMA and who executed the within and foregoing instrument, and acknowledged that he signed the same as his free and voluntary for the uses and purposes therein mentioned. DER my hand and official seal this5 day of ApC;1 , 2001. art o NOTARY PUBLIC irrand for the State of Washington, residing at My commission expires: S OF WASHINGTON ) ss. County of Yakima ) This is to certify, that on this day personally appeared before me5'Ar1 MAA -i nkucto me known to be the Qa5 (Gatti-' of WESTERN MATERIALS, INC. 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. hand and official seal lease/ms/32601 1/l of r l l , 2001. NOTARY PUBLIC in and for Washington, residing at My commission expires: 4 State of BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. For Meeting of April 3, 2001 ITEM TITLE: Resolution Authorizing Lease Renewal with Western Materials, Inc. for City -Owned Property SUBMITTED BY: Chris Waarvick, Director of Public Works CONTACT PERSON/TELEPHONE: Raymond L. Paolella, City Attorney/575-6030 Chris Waarvick, Director of Public Works/575-6005 SUMMARY EXPLANATION: Attached is a resolution authorizing the City Manager to execute a lease of ground space located directly under the Nob Hill Boulevard overpass to Western Materials, Inc. Western Materials has leased this property from the City for a number of years, and the City has no foreseeable need to use this ground space for any public purpose. The attached resolution and lease would renew the existing arrangement between the City and Western Materials, with provisions to protect the City from any damages to the overpass structure and any release of hazardous substances on the site. Liability insurance levels have been increased per recommendations from legal council yet we have maintained the annual fee at $300. The president of Western Materials, Stan Martinkus, and I have discussed this matter and the provisions are acceptable to him. Resolution X Ordinance Other (Specify) Ten Year Lease Contract Mail to (name and address): Phone: Funding Source: APPROVED FOR SUBMITTAL: City Manager STAFF RECOMMENDATION: Staff respectfully requests Council to adopt the resolution authorizing execution of a Lease with Western Materials, Inc. for ground space located directly under the Nob Hill Boulevard overpass. BOARD/COMMISSION RECOMMENDATION: COUNCIL ACTION: Resolution adopted. RESOLUTION NO. R-2001-62