HomeMy WebLinkAbout02/01/2022 06.I. Resolution terminating the Standard Lease Renewal Agreement with Viacom Outdoor 1
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 6.1.
For Meeting of: February 1, 2022
ITEM TITLE: Resolution terminating the Standard Lease Renewal Agreement
with Viacom Outdoor
SUBMITTED BY: Sara Watkins, City Attorney
SUMMARY EXPLANATION:
When the City purchased property at the corner of Lincoln and First Street for the underpass
project, it purchased a parcel that was subject to a lease with Viacom Outdoor for a billboard
located thereon. That lease survived the sale and has been in place since. The term of the lease
expires at the end of May 31 , 2022, and the City does not wish to extend the term, which would
happen if the City does not formally terminate the Agreement. The three billboards on the
property are nonconforming uses as they do not meet the current requirements in the City's sign
code. Additionally, the location of two of the billboards impedes the City's ability to make full use
of its property. The loss of revenue is minor as the billboards generated $1 ,500.00 in annual
rent. This resolution formally terminates the agreement and authorizes the City Manager to take
all necessary steps to terminate the Agreement. A copy of the Agreement is included for your
reference.
ITEM BUDGETED: NA
STRATEGIC PRIORITY: NA
APPROVED FOR SUBMITTAL BY THE CITY MANAGER
RECOMMENDATION:
Adopt resolution.
ATTACHMENTS:
Description Upload Date Type
Res-Termination of Standard Lease Renewal Agreement121 1/21/2022 Resolution
w Viacom
Standard Lease Renewal Agreement w-Viacom Outdoor 1/21/2022 Backup Material
dated 5.21.2002.pdf
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RESOLUTION NO. R-2022-
A RESOLUTION terminating the Standard Lease Renewal Agreement with Viacom Outdoor
for the billboards at 302 North 1st Street.
WHEREAS, when the City obtained land commonly known as 302 North 1st Street to
construct the Lincoln Avenue underpass it was assigned a lease with Viacom Outdoor for a
billboard on the property; and
WHEREAS, said lease agreement allowed Viacom to use the real property located
approximately 50 feet North of Lincoln Avenue on the South side of 1st Street for three billboards
within close proximity to one another; and
WHEREAS, the lease agreement provides that the term was for ten years with an
additional ten-year extension, which will end on May 31, 2022, and thereafter the lease could be
extended on a year-to-year term; and
WHEREAS, the City wishes to terminate said lease and to do so must provide thirty (30)
days written notice prior to the end of the lease term that the agreement will be terminated; and
WHEREAS, the City Council of the City of Yakima finds that it is in the best interest of the
City and its residents to terminate the agreement with Viacom Outdoor for use of the billboard on
City-owned property adjacent to the Lincoln Avenue underpass; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The Standard Lease Renewal Agreement with Viacom Outdoor for use of 301 North 1st
Street shall be terminated and the City Manager is authorized to take all steps necessary and
execute all documents necessary to terminate the Agreement.
ADOPTED BY THE CITY COUNCIL this 1st day of February, 2022.
ATTEST: Janice Deccio, Mayor
Sonya Clear Tee, City Clerk
Form 520N Rev 1 I/0 1 Bran zee:Eugene,Oregon
110
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' - Lease Dumber, _ a/G.2,0
007008I0A7008"08 740
STANDARD LEASE RENEWAL AGREEMENT.
VIACOM OUTDOOR
THIS AGREEMENT, dated this 21st day of MAY, 2002 is by and between GARY SYBOUTS ("LESSOR"), and VIACOM OUTDOOR INC. a
Delaware corporation,doing business as VIACOM OUTDOOR,2502 N.Black Canyon Hwy.Phoenix,Arizomi 85009. .
I_ PROPERTY LESSOR is the owner(or authorized lessor)of that certain real property (the"Property") located about 5 feet N of
LINCOLN on the S side of l rst for display(s)facing S,being part of the LESSOR'S property known as 302 N. 1 RST.S situated in the Township of
Y'AKIMA County of YAKIMA Slate of4Zeeeted. This displays)are intended to be viewed from N. list,St.street or highway,
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Effetxive Date:
Size: 12 c24 Number of Faces:3
***3a.The advance yearly rental•ayments shall be made in equal annual installments in the amount of$1500.00 •
SKETCH THE APPROXIMATE LOCATION OF OUTDOOR ADVERTISING STRUCTURE ON.PROPERTY
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2. TERM. LESSOR hereby greets and leases to Viacom Outdoor and'Viacom Outdoor accepts the grant and lam from LESSOR the
Property to have and to hold upon the terms and oxctditiosns r rained in this lease. The Principal Term, as extended, and Year-to-Year Tenn are
c3otte tively the"Term"of this lease. •
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PRINCIPAL TERM/EX"i•EN'SION. The Principal Tam shalt be for 10 years and weall commence upon expiration'of the prior lease between LESSOR
Viacom Outdoor has then t to extend the Prim a
and Vial Outdoor regarding the Property. $� Principal Term for an additional term of 10 years on the same
terms beginning upon expiration of the initial Principal Term which shall be deemed exercised by tendering the first t installment of the rent due for second
terra.
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YEAR-TO-YEAR TERM. Upon the expiration of the Principal Term,as extended.,this Lease will continue on the then existing tems,and conditions on a
year-to-year basis. LESSOR or Viacom Outdoor.may ter irate this Lease effective at the end of any lease year of the Year-to-Year Term by giving at
least thirty(30)days written notice prior to the and ot`that lease year.
3. RENT._Viacom Outdoor shall pay Rent to LESSOR annually in advance: in the following amounts for each Term: PRINCIPAL
TERM/EXTENSION and Y -T
EARO-YEAR TERM$1500.QQ, Rent shall be deemed to have bean received on time unless LESSOR notifies Viacom
Outdoor of non-fit°of payment:—Vi$com Outdoor shall be permitted thirty(30)days from receipt of notice-on fln non-receipt to make such payment
without being dr default of thus lease.: - •- - -• . _. --. _ • - r
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4. LEASED PROPERTY. Viacom Outdoor shall be entitled to use the Property to erect, maintain, services remove and reposition (if
subsequently neCessary)an outdoor advertising structure(including necessary structures,footings devices,power poles and mum:Lions)on the Propeny for
such use.or uses as petered by law. The leased portion of the Property includes all neoary areas over,across and under the Property to provide for the
construction,maintenance,service of advertising copy,repositioning and removal ofthe advertising structure and to provide for the installation of electrical
and telephone service to advertising structure,if necessary,
'5.LEASE PROVISIONS. This lease contains the provisions on this page and an the reverse hereof. LESSOR has react and understands ail
such terms and provisions.
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Executed under the hand and seal of the parties an the dates provided below
°fief:Date:5!2 l/02 •
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LEss R S tun zu.vmo,itdoey7FM
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Gary Sy uts
Print Na ntilltle of Corporation crt PA.rtnesh p Print N `
302 N`l cst.St. . DIRECTOR OF REAL ESTATE
• /.� 70 WESTERN REGION
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Form 520N Rev 11/01
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6. LESSOR'S COVENANTS.(a)AUTHORITY OF LESSOR_ LESSOR,covenants and warrants th SORthidäaner,ageneof
the owner,or an authorized lessee of the Property and that LESSOR has full power and authority to enter into and'pelomi under the covenants of this
Lease,including,without limitation,leasing the property and authorizing the construction of the advertis' ing structure at the location provided. LESSOR
agrees to provide Viacom Outdoor with written proof of such arithorization. LESSOR grants to Viacom Outdoor quiet enjoyment of the Property and
warrants and agreas to defend Viacom Outdoor in the quiet enjoyment of the Property during the Team of this Lease, LESSOR and Viacom Outdoor agree
that this Lease may be recorded at the appropriate county office.
7. ACCESS/NO OBSTRUCTION. LESSOR covenants and warrants that Viacom Outdoor shall have a reasonable means of access over,
across and under the Property,and any adjoining or appurtenant propaty eawned or controlled by LESSOR,to erect,illuminate,maintain,service,remove
and reposition its outdoor advertising structure. LESSOR covenants and warrants not to erect,place,construct or maintain any improvement,structine,
advertising display,vegetation(including any trees,shrubs or other vegetation),or any other object on the Property,or on any adjoining or appurtenant
property owned or controlled by LESSOR,which would in any manner,partially or completely,obscure or obstruct the normal highway view(s)of Viacom
Outdoor's advertising structure on the Property, or permit any third party to do so. Viacom Outdoor has-14 right (I)to remove the obscuring or
obstructing improvement,structure,advertising display.or the objFct4,LESSOR's expense;and(ii)to cast and/or remove any obscuring or obstructing
vegetatioilat Vial Outdoor's expense.
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8. INDEMNITY AND INSURANCE. Each party agrees to indemnify and hold harmless-the other froM any and all claims or demands on
account of bodily injury or physical property damage caused by or resulting from any negligent or willful acts or omissions ofthe indemnifying party or its
agent,employees or contradors, Viacom Outdoor agrees to carry,at its own cost and expense,gears-al liability insurance in the amount of One Million
Dollars($ 0300,000)cawing any awls contingency during the Tenn Of ihi%LeaSe,
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9_ TERMINATION RIGHT. [fat any time(I)the normal highway view of Viacotn Outdoor's advertising structure is obscured or ottstructix1;
(ii)the use or installation of such advertising structure is prevented or restricted by law Of by Viacom Outdoor's inability to secure and maintain any
necessary permits or licenses;or(iii)Viacom Outdoor is unable,for any period of ninety(90)consectlive days or more,to secure and maintain a suitable
advertising contract for the advertising structure,Viacom Outdoor may,at its option,terminate this Lease by giving LESSOR fifteen(15)days written
notice. If in the reasonable opinion of Viacom Outdoor,any of the above conditions shall only temporarily exist,then Viacom Outdoor,may,at its option,
instead of terminating this Lease,be entitled to pay reduced Rant equal to$100.00 per year during the period such conditions or any of them exist. Upon
early termination of the Lease or reduction in Rent for any reason,LESSOR agrees to refund to Viacom Outdoor any prepaid or overpaid Rent If Viacom
Out-door's advertising structure is a double-faced advertising structure and any of the conditions described in this paragraph affect only one face of the
advertising structure,Viacom Outdoor has the right to reduce the Rent(including any paid in advance)to 50%of the Rant rather than terminating the
entire Lease.
10. CONVEYANCE. This lease shall be binding upon herr's,executors,personal representatives,suocessors and assigns for the parties hereto
and Lessor agrees to notify Lessee of any change of ownership of the premises related hereto or of Lessor's mailing address within seven(7)days of such
change. Lessor agrees to hold Lessee hamtless firm'any action resulting fi Via failure to provide said notice.. Lessor shall not assign.its interest under this
Lease or any part hereof except to a patty who purchases the underlying fee title to the premises;and Lessee shall not assign its interest under this Lease or
any part thereof except to a party who purchases title to the subject sign structures(s);provided however,this sentence shall not preclude a collateral
assignment of Lessor's or Lessee's interest under this Leaseto a lender as pan of a bonafide loan transaction,
1 1. CONDEMNATION. In the event that all or any part of the Property is acquired or sought to be acquired by any entity having or
delegated the power of eminent domain,Viacom Outdoor shall,at its election and in its sole discretion,be entitled to:(I)contest the acquisition or defend
against the taking of Viacom Outdoor's interest in the Property;(ii)relocate the outdoor advertising structure and appurtenances onto any portion of the
Property not acquired or to be acquired;and/or(iii)be compensated from any award or consideration payable by the acquiring entity for all costs,damages
and valueless incurred by Viacom Outdoor relating to its leasehold,as improved with the outdoor advertising structure. LESSOR may not terminate this
Lease under any tieht or circumstanee lithe Property has teal taken or is threaened to betaken by eminent domain,or if-the Property is conveyed to any
entity or its awn/with eminent domain authority. No contemporary or subsequent modification of this Lease or the foregoing sentence shall be effixtive
unless it specifically references this paragraph and the foregoing sapience,
12. IMPROVEMENTS. All the outdoor advertising structures,power poles,materials and equipment can the Property are and shall remain the
properly of Viacom Outdoor and may be removed by Viacom Outdoor at any time prior to or within ninety(90)days after the termination of this Lease or
any extended term of this Lease. Viacom Outdoor agrees to remove the advertising structure,(exclusive of footings which shall only be removed to grade
level)and restore the surface to its natural condition.
13. ENTIRE AGREEMENT. This Lease contains the entire agreement between the parties and may not be changed except by written
agreement signed by the parties. Oral reprizentatifais or ate-mail:ails stall have no eireci- If the proper legal description of the}luply is not attached,
either party may attach-or provide it at a latectime.
14. NOTICE_ All notices-we effecititit'e upon dispatch and must be in writing and delivered by mail,personal delivery or commercial courier to
LESSOR and Viacom Outdoor at the respective addresses set forth above.
State ofidd,47,4:17 On this 752-Irlay(athr__gi'LLbefore me, _ • a,/
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the undersigned officer,personally appeared it -fine - •.1'4 " *
(Or County of satisfactorily proven)to be the person whose name is subscribed to the above . 0 41tha ss.
/ 416
contents of said instrument,acknowledged that he or she volunbirily executed ieeuses 'Nein
contained.In witness whereof,I have hereunto set my hand and official seal T
My Commission Expires 3-- -047 f :4
(Signature of Officer)
110,1 Vii\v'‘C o
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Parcel Identification_ umber:, ,
Legal Description of Property(For Recording Purposes): _ .
After recording return to: Attention:Lease Coordinator: -
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