HomeMy WebLinkAbout07/02/2013 05A City On-Site Clinic; Sunfair Building Lease Agreement Amendment; Sunfair Professional Associates, LLCBUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. r7"
For Meeting of: 7/2/2013
ITEM TITLE: Resolution authorizing an amendment to the existing Lease
Agreement with Sunfair Professional Associates, LLC for
commercial office space to accommodate MiCare health
facilities.
SUBMITTED BY: Mark Kunkler, Senior Assistant City Attorney / 575 -6030
SUMMARY EXPLANATION:
The City of Yakima and Sunfair Professional Associates, LLC entered into a Lease Agreement
on November 1, 2012 for office space within the Sunfair Building. The office space was leased
and improved to accommodate the City's MiCare health clinic facilities. The MiCare clinic has
proven to be a great success and the site serves well. During construction of improvements for
the leased space, the initial estimated budget was $15,000, with the City paying 75% of the
costs, and the Landlord 25% of the costs. The actual costs were nearly $30,000, in part due to
the cost of specialized medical - quality fixtures and an expedited tenant improvement bidding
process conducted by the Landlord. When the City was presented with a bill for tenant
improvements for about $21,000, the City and Landlord entered into discussions regarding
possible settlement. One of the settlement mechanisms consisted of an amendment to the
Lease extending the Lease for two years, but splitting the cost of tenant improvements on a 50-
50 basis. Thus, each party would contribute about $16,000 to cover the costs. The extension of
the Lease locks in a set rental rate for two additional years, and, as mentioned above, the space
will adequately serve the City's needs for operation of the clinic for at least that period of time.
Resolution: X
Other (Specify):
Contract: X
Start Date: 11/01/2012
Item Budgeted: NA
Funding Source /Fiscal
Impact:
Strategic Priority:
Insurance Required? No
Ordinance:
Contract Term: 5 Years
End Date: 12/31/2017
Amount:
General Fund, Health Care
NA
Mail to: Dan Kinley, KCI Commercial, Inc., P.O. Box 1135, Tacoma,
WA 98401
Phone: 253-475-4363
APPROVED FOR
SUBMITTAL: City Manager
RECOMMENDATION:
Adopt Resolution approving amendment to Lease Agreement.
ATTACHMENTS:
Name- Description-
E] Resolution - Sunfair Lease AMEND June 17 2013.docx Resolution - Sunfair Lease AMEND June 17 2013
F-1 Sunfair Professional Associates LLC- Sunfair Professional Associates LLC-First
First Amendment to Lease Agreement JuIV 2.2013.pdf Amendment to Lease Agreement-July 2.2013
RESOLUTION NO. R -2013-
A RESOLUTION authorizing the City manager to execute an agreement amending
commercial lease between Sunfair Professional Associates, LLC
and City of Yakima.
WHEREAS, the City of Yakima (City) and Sunfair Professional Associates, LLC
have previously entered into a Lease Agreement for office space within the Sunfair
Building, which space is used to accommodate the operation of the City's MiCare
facilities; and
WHEREAS, the City and Sunfair Professional Associates, LLC have negotiated an
amendment to such Lease Agreement, which amendment provides for the extension of
the lease for an additional two years with set rental rates, and modifies provisions related
to tenant improvements; and
WHEREAS, the City Council finds and determines that approval of such
amendment will promote the operation of the City's MiCare health facilities and provide
established rental rates for an additional two years, and will promote the general health,
safety and welfare; therefore
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The City Manager is hereby authorized to execute the First Amendment to Lease
Agreement with Sunfair Professional Associates, LLC, a copy of ehich amendment is
attached hereto as Exhibit "A" and by reference made a part hereof; now, therefore,
ADOPTED BY THE CITY COUNCIL this 2nd day of July, 2013.
ATTEST:
City Clerk
Micah Cawley, Mayor
THIS FIRST AMENDMENT amends the Commercial Lease Agreement dte
a i Building," 103 South 3' Stre
Yakima, Washington. I I
IN CONSIDERATION of the mutual covenants, conons and promises herein the parties
agree to amend the Lease Agreement as follows-
I . Lease Termination Date. Subsection 1 (c) of the Lease Agreement is amended to
read as follows:
c. Lease Termination Date. The term of this Lease shall terminate at midnight on
December 31, 2017 or such earlier or later date as provided in Section 3 (the
"Termination Date"), Tenant shall have no right or option to extend this Lease unless
-i-therwise set forth in a rider attached to this Lease (e.g., Option to Extend Rider, CBA
Form OR) [footnote 11.
Z Tenant Improvements. Exhibit C, Section 1 (Tenant Improvements to be Completed by
Landlord) Is amended to read as follows-
Landlord has provided Tenant with a turn-key tenant improvement package. Tenant
shall be responsible for $17,917.16 of said improvements. This amount shall be broken
down as $1,312.03 for purchase of materials used and $16,605.13 reimbursed to the
Landlord. Said reimbursement shall be due in full 10 days after this amendment
document is fully executed.
3. Base Monthly Rent Schedule. Section I of the Rent Rider is hereby amended to
read as follows:
1. BASE MONTHLY RENT SCHEDULE. Tenant shall pay Landlord base monthly
rent during the Lease term according to the following schedule-.
Lease Year (State in Years or Months)
I
1
4i Effect of Amendment. Except as amended herein, the provisions of the Lease
Agreement previously executed by the parties and dated November 1, 2012 shall remain
unchanged,
STATE OF WASHINGTON )
)ss.
County of Yakima
Date:
By:
KCj9 Omer 6at-ffi'c., Agent
Date:
I certify that I know or have satisfactory evidence that TONY OROURKE is the City Manager of
the City of Yakima, and that he appeared before me and acknowledged that he signed this
instrument, and on oath stated that he is duly authorized to execute such instrument on behalf
of the City of Yakima, and that such action as the free and Voluntary act and deed of such party
for the uses and purposes mentioned in the instrument.
DATED this _ day of 12013
11112, • f
07 =-* -ntment expires-
2
STATE OF WASHINGTON )
County of lliel;l�� )ss.
DATED this /9 i�day of -6( 2013