HomeMy WebLinkAboutR-2011-013 Western Materials, Inc. Lease RenewalRESOLUTION NO. R-2011-13
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 18th day of January, 2011.
ATTEST: Micah Cawley, Mayor
_61-1)ThaJJ
City Clerk )
LEASE
THIS LEASE is made this day of 4Tividivi` , 2011, 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
January 3, 2011, and terminating December 31, 2020, 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,
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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)
(ii)
2011 LEASE Documentdoc
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
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
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(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
2011 LEASE Document.doc
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§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 744,4* ---
s pais 4City Manager
nitx a�.� ly�orsJes, Ac'rin
ATTEST:
WESTERN MATERIALS, INC.
By:
Its:�,��
City Clerk
STATE OF WASHINGTON )
:ss.
County of Yakima
M 1 c,4,1 E)- MO/I4-LF
This is to Gthat on this day personally appeared before me, �4Zais, Jr., to me
known to be theI?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
act and deed, for the uses and purposes therein mentioned.
GIVEN UNDEII dpfficial seal this /9 day of kAil/a#/0011.
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My Comm. Expires .;
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STATE OF WASHINGf'B, 1llyAS\A
:ss.
County of Yakima )
This is to c,,�eJ tify that on this day personally appeared before me Andy I ay.�,h coo me
known to be the i'/ /c2rn q e ✓ of WESTERN MATERIALS, INC. and who executed the
within and foregoing insthiment, and acknowledged that he signed the same as his free and
voluntary act and deed, for the uses and purposes therein mentioned.
ARY P1 fBLIC in and for the State of
Washington, residing at >/i47K/Y'Ifi .
My commission expires: 0-46":-/-4/
GIVENLII( �fl and official se
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▪ : My Comm. Expires
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2011 LEASE Documentdoc
this
0147
day of 1 n , 2011.
NOTARY PUBLIC in and forte State of
Washington, residing at 6€/ 11
My commission expires:l`7/5//i
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No.* I 1
For Meeting of January 18, 2011
ITEM TITLE: Consideration of a Resolution Authorizing Lease Renewal with Western
Materials, Inc. for City -Owned Property
SUBMITTED BY: Chris Waarvick, Director of Public Works
CONTACT PERSON/TELEPHONE: Jeff Cutter, City Attomey/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. Westem 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: