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HomeMy WebLinkAbout08/19/2025 07.K. Resolution authorizing a second amendment to the Commercial Lease Agreement between the City of Yakima and the Greater Yakima Chamber of Commerce for property located at 10 North 9th Street in Yakima r-- `y 7 ljlt 'I!I/ • s . BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 7.K. For Meeting of: August 19, 2025 ITEM TITLE: Resolution authorizing a second amendment to the Commercial Lease Agreement between the City of Yakima and the Greater Yakima Chamber of Commerce for property located at 10 North 9th Street in Yakima SUBMITTED BY: Ryan Bleek, Acting City Attorney SUMMARY EXPLANATION: The original Purchase and Sale Agreement for 10 North 9th Street between the City and the Chamber included in its consideration the ability for the Chamber to use the building for six months. The Chamber previously requested to extend that an additional four months through August 31, 2025, and pay the City $1,200.00 per month for each month of the extension. The parties agree to a second amendment to the terms of the lease through May 31, 2026. The remaining terms and conditions of the original agreement remain the same, including rent at $1,200 per month. ITEM BUDGETED: Yes STRATEGIC PRIORITY 24-25: A Thriving Yakima RECOMMENDATION: Adopt Resolution. ATTACHMENTS: Resolution_second amendment.chamber.lease Chamber.Amendment.2 118 RESOLUTION NO. R-2025- A RESOLUTION authorizing a second amendment to the Commercial Lease Agreement between the City of Yakima and the Greater Yakima Chamber of Commerce for property located at 10 North 9th Street in Yakima. WHEREAS, the City of Yakima purchased the property at 10 North 9th Street from the Greater Yakima Chamber of Commerce on or about October 31, 2024, and as part of the consideration of the purchase, the Greater Yakima Chamber of Commerce and the City of Yakima entered into a Commercial Lease Agreement with a Term through April 30, 2025; and WHEREAS, the Greater Yakima Chamber of Commerce and the City of Yakima previously executed an amendment extending the term of the lease through August 31, 2025 for the monthly rent of$1,200 per month; and WHEREAS, the parties agree that an additional extension of the lease through May 31, 2026, is in their mutual interest and the monthly rent specified in the first lease amendment remains in effect; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager is hereby authorized to execute the Second Amendment to Commercial Lease Agreement Executed on 10/31/24, attached hereto and fully incorporated herein. ADOPTED BY THE CITY COUNCIL this 19th day of August, 2025. ATTEST: Patricia Byers, Mayor Rosalinda Ibarra, City Clerk 119 SECOND AMENDMENT TO COMMERCIAL LEASE AGREEMENT EXECUTED ON 10/31/24 THIS SECOND AMENDMENT TO THE COMMERCIAL LEASE AGREEMENT is made and entered into by and between the City of Yakima, Landlord, and the Greater Yakima Chamber of Commerce, Tenant, which mutually agree to further amend the Commercial Lease Agreement executed on October 31, 2024, and as amended on April 17, 2025, as follows: 1. Article III: Term, shall be amended to read as follows: The Lease term shall commence on November 1, 2024 ("Commencement Date")and shall continue through May 31, 2026, unless terminated earlier under the terms hereof, at which time the Lease will automatically terminate without further notice. Tenant and any subtenant shall fully vacate the Premises upon termination of the Lease and possession of the same shall revert to Landlord. 2. Article VI: Acceptance of Premises, shall be amended to read as follows: Tenant represents and warrants to Landlord that Tenant is familiar with the Premises and with the improvements previously placed therein; that Tenant accepts the Premises and Building (including the mechanical, electrical, plumbing, roof, fixtures, fire protection and HVAC systems, if any) as is, where is, in its present condition, and as suitable for the purposes for which it is leased, and subject to all applicable municipal, county and state laws, ordinances and regulations governing and regulating the use of the premises and to all matters disclosed by this lease and by any exhibits attached hereto; and that neither Landlord, nor Landlord's agents, have made any representation or warranty as to the suitability of the Premises for the conduct of tenant's or subtenant's business. Tenant agrees and understands that Landlord shall have no duty to maintain, preserve, and/or repair the Premises or Building (including, without limitation, the mechanical, electrical, plumbing, roof, fixtures, fire protection, and HVAC systems, if any). Landlord will not repair or replace any heating or air conditioning unit or units. Tenant's sole remedy for the failure of any portion of the Premises or the improvements thereon shall be the termination of this Lease for convenience as provided herein. 3. Article XXXIV: Termination Without Cause, shall be amended to read as follows: After March 31, 2026, unless termination is due to the failure of the HVAC system as outlined in Article VI, the Tenant may terminate this Lease without cause or for convenience, by giving the Landlord sixty(60)days written notice of termination. After March 31, 2026, Landlord may not terminate this Lease without cause or for convenience. In the event of termination without cause or for convenience, the Tenant may continue to occupy the Premises through the notice period and shall vacate the Premises on or before the end of the notice period. Upon the running of the notice period, the Lease shall terminate and possession of the Premises shall be turned over to Landlord. 120 Except as expressly modified herein, all other terms and conditions of the original Commercial Lease Agreement executed on October 31, 2024, and Amendment to Commercial Lease Agreement dated April 17, 2025, shall remain in full force and effect. If any section, subsection, paragraph, sentence, clause or phrase of this Amendment is declared invalid or unconstitutional for any reason, such decision shall not affect the validity of the remaining portions of this Amendment or the original Commercial Lease Agreement. LANDLORD: TENANT: CITY OF YAKIMA GREATER YAKIMA CHAMBER OF COMMERCE Victoria Baker, City Manager Kristi oster, CEO/President 129 North 2nd Street 10 Nort Street Yakima, WA 98901 Yakima, WA 9889011 Dated: Dated: 8/\Q I2 121