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Home My WebLink About12/05/2023 07.E. Resolution authorizing a lease extension for the MiCare Clinic with Sunfair Professional Associates LLC 1 • .4. !% a, BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 7.E. For Meeting of: December 5, 2023 ITEM TITLE: Resolution authorizing a lease extension for the MiCare Clinic with Sunfair Professional Associates LLC SUBMITTED BY: Connie Mendoza, Director of Human Resources SUMMARY EXPLANATION: The City leases space at the Sunfair Building for the MiCare clinic. The current lease, as extended, expires on December 31, 2023. The landlord has agreed to an extension of the lease, with updated monthly rental amounts. ITEM BUDGETED: Yes STRATEGIC PRIORITY: NA APPROVED FOR SUBMITTAL BY THE CITY MANAGER RECOMMENDATION: Adopt Resolution. ATTACHMENTS: Description Upload Date Type D Resolution 11/29/2023 Coker Memo D Lease Extension Agreement 11/29/2023 Cover Memo 2 RESOLUTION NO. R-2023- A RESOLUTION authorizing an extension of the lease between the City of Yakima and Sunfair Professional Associates, L.L.C. for the MiCare clinic space WHEREAS, the City of Yakima entered into a commercial lease agreement with Sunfair Professional Associates, L.L.C. to lease space for the City's MiCare medical clinic facilities on November 1, 2012; and WHEREAS, the lease agreement has been amended and extended a number of times, and is set to expire on December 31, 2023; and WHEREAS, the City finds that the premises being used for the MiCare medical clinic is appropriate and that extension of the lease for an additional three years on the same terms and conditions, other than rental cost, as the previous documents is warranted; and WHEREAS, the City Council of the City of Yakima finds that it is in the best interests of the City and its residents to approve the lease extension providing for an additional three year term with Sunfair Professional Associates, L.L.C. for the lease for the City's MiCare clinic at the Sunfair Professional Building; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager is hereby authorized to execute the Extension of Lease with Sunfair Professional Associates, L.L.C., and its management company KCI Commercial, Inc. to provide for the continued use and operation of the MiCare medical facility within the Sunfair Professional Building. ADOPTED BY THE CITY COUNCIL this 5th day of December, 2023. ATTEST: Janice Deccio, Mayor Rosalinda Ibarra, City Clerk 3 KCI COMMERCIAL INC. P.O.Box 1135/Tacoma,Washington 98401/475-4363 EXTENSION OF LEASE The lease, dated November 1,2012, between Sunfair Professional Associates LLC., Landlord, and City of Yakima, Tenant, for the premises located in the City of Yakima, County of Yakima, State of Washington, described as follows: Approximately 1,623 rentable sq.ft. of office space commonly known as 103 South 3rd St., Yakima, WA, legally described as: Lot 7 and Lots 13 through 24, Block 72, THE TOWN OF NORTH YAKIMA, now Yakima,Washington,recorded in Volume"A"of Plats, Page 10,and re- recorded in Volume "E" of Plats, Page 1, records of Yakima County, Washington. It is by mutual agreement between the parties to hereby extend the lease for the term of 3 years,from the 1st day of January,2024,to the 31st day of December,2026. The minimum rental for such extended term shall be calculated as follows: January 1, 2024 thru December 31, 2024 $1,955.57 per month plus NNN Charges January 1, 2025 thru December 31, 2025 $2,014.24 per month plus NNN Charges January 1, 2026 thru December 31, 2026 $2,074.67 per month plus NNN Charges It is agreed and understood by the Tenant that this extension of lease is to run consecutively with the lease dated November 1, 2012 and that default in the terms and covenants of the lease will automatically constitute default of this extension. As per Paragraph 11.(a)of the aforementioned Lease, Landlord reserves the right at any time during the term of the Lease or any Extension thereof,to impose reasonable rules and regulations concerning the use of the Common Areas. Once imposed,Tenant hereby agrees to comply and acknowledge said Rules and Regulations in writing. Except as hereinabove stated, all other covenants, agreements, stipulations or conditions of said lease shall continue and remain in full force and effect. IN WITNESS WHEREOF,the parties hereto have caused this agreement to be executed this day of , 2023. LANDLORD TENANT hups:/Lci.,2 Wvapolcl.cccatk,Managcd RopertesiD-Ss,fair BoOdth 5-c.URRENT TENANTS/Su 103 CRY OF YAKIMA CLB.TCGE..Icnsion of L,,c 11-23.dor.. 4 STATE OF WASHINGTON COUNTY OF )/t ss. • I certify that I know or have satisfactory evidence that (I 1 f hiili is the person who appeared before me and said person acknowledged that k signed this instrument, on oath stated that the was authorized .to execute the instrument and acknowledged it as the AIR virly Aieriby.-- of,i14daIv ( to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument.'Awe/4/?-*, cc Dated this I fl day of Al 1/- , 202j 046,_ 0.\AA L. k..•///, (Signature of Notary) • ‘":•• 'cx, on •cf 7-1 5-2,9%,*•<‘", Nr• co• s (Legibly Print or Stamp Name of Notary) - • = = p, Notary public in and for the state of Washington. Yi", uti IC ..co : residing at M cb My appointment expires — (`‘, !Ittirnbet .... G STATE OF WASHINGTON ss. COUNTY OF I certify that I know or have satisfactory evidence that is the person who appeared before me and said person acknowledged that signed this instrument, on oath stated that was authorized to execute the instrument and acknowledged it as the of to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. Dated this day of , 20 . (Signature of Notary) (Legibly Print or Stamp Name of Notary) Notary public in and for the state of Washington, residing at My appointment expires 5 SUNFAIR BUILDING BUDGET 2024 City of Yakima -Clinic BUDGETED 1,623 EXPENSES 4.71% CAM Downtown Business Improvement $ - $ - Fire & Safety $ 650.00 $ 30.60 Janitorial Common Restrooms $ 4,350.00 $ 204.80 Janitorial Supplies Common Restroor $ 2,100.00 $ 98.87 Maintenance - Common Area $ 1,250.00 $ 58.85 Maintenance - HVAC $ 5,200.00 $ 244.82 Maintenance - Landscaping $ 2,500.00 $ 117.70 Maintenance - Lighting $ 500.00 $ 23.54 Maintenance - Parking Lot $ 3,000.00 $ 141.24 Maintenance - Snow Removal $ 2,000.00 $ 94.16 Management Fees $ 18,000.00 $ 847.45 Permits and Fees $ 60.00 $ 2.82 Repairs- Building $ 2,500.00 $ 117.70 Repairs- Electrical $ 3,500.00 $ 164.78 Repairs- HVAC $ 3,500.00 $ 164.78 Repairs- Plumbing $ 1,500.00 $ 70.62 Repairs- Roof $ 2,800.00 $ 131.82 Security $ 2,000.00 $ 94.16 Supplies- Common Area $ - $ - Supplies- Lighting $ - $ - Utilities - Electric $ 21,000.00 $ 988.69 Utilities - Gas $ 17,500.00 $ 823.91 Utilities - Refuse $ 3,600.00 $ 169.49 Utilities - Sewer $ 1,900.00 $ 89.45 Utilities -Water $ 1,800.00 $ 84.74 TOTAL CAM $ 101,210.00 $ 4,765.00 REAL ESTATE TAXES &INSURANCE Insurance $ 13,000.00 $ 612.04 Real Estate Taxes $ 25,400.00 $ 1,195.84 TOTAL RE TAXES & INSURANCE $ 38,400.00 $ 1,807.88 TOTAL BUDGETED EXPENSES $ 139,610.00 $ 6,572.88 MONTHLY CAM $ 397.08 MONTHLY INSURANCE $ 51.00 MONTHLY TAX $ 99.65 MONTHLY TOTAL $ 547.74 PER SQUARE FOOT $ 4.05 11/22/2023