HomeMy WebLinkAbout08/20/2013 05E Capitol Theatre Office Space Lease Agreement with The Tower, LLCBUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. '�—L
For Meeting of: 8/20/2013
ITEM TITLE: Resolution concerning Administration; authorizing the City
Manager to execute a Lease Agreement between The Tower,
LLC and the City of Yakima to provide office space to house
the Capitol Theatre staff.
SUBMITTED BY: Jeff Cutter, City Attorney
SUMMARY EXPLANATION:
The City leases space from The Tower, LLC in the downtown Tower building to provide office
space for the Capitol Theatre staff members. Due to reductions in staff support for the Capitol
Theatre and in an effort to reduce Theatre operating overhead, the City and The Tower, LLC
have agreed upon a reduced lease space within the Tower building that will adequately house
the Capitol Theatre staff and also reduce the cost of leased space from $37,000 annually to
$21,888 annually. The new Lease will replace the previous agreement and will allow the
Theatre staff to remain in the premises they previously occupied, but with a reduction in the
leased area and in the monthly rent.
Resolution: X
Other (Specify):
Contract:
Start Date:
Item Budgeted: NA
Funding Source /Fiscal
Impact:
Strategic Priority:
Insurance Required? No
Mail to:
Phone:
APPROVED FOR
SUBMITTAL:
Ordinance:
Contract Term:
End Date:
Amount:
Public Trust and Accountability
City Manager
4:=IjftT &O.J,
RECOMMENDATION:
Adopt Resolution.
ATTACHMENTS:
mom
0 Resolution-
The Tower Capitol Theatre Lease Agreement.docx
Description-
Resolution-The Tower & Capitol Theatre Lease
Agreement
contract
RESOLUTION NO. R -2013-
A RESOLUTION concerning Administration; authorizing the City Manager to
execute a Lease Agreement between The Tower, LLC and the
City of Yakima to provide office space to house the Capitol
Theatre staff.
WHEREAS, the Capitol Theatre is owned by the City of Yakima and is operated on the
City's behalf by the Capitol Theatre Committee; and
WHEREAS, the Capitol Theatre Committee hires and employs staff members to provide
the day to day operations of the Theatre; and
WHEREAS, the City leases space from The Tower, LLC in the downtown Tower building
to provide office space for the Capitol Theatre staff ; and
WHEREAS, recently due to reductions in staff support for the Capitol Theatre and in an
effort to reduce Theatre operating overhead where possible, the City and The Tower, LLC have
agreed upon a reduced lease space within the Tower building that will adequately house the
Capitol Theatre staff and also reduce the cost of leased space on behalf of the Theatre; and
WHEREAS, the new Lease, attached hereto and incorporated herein by this reference
will replace the previous agreement, and will allow the Theatre staff to remain in the premises
they previously occupied, but with a reduction in the leased area and in the monthly rent; and
WHEREAS, the City Council finds it to be in the best interests of the City to enter into
the attached Lease Agreement to provide for office space necessary and appropriate to the
needs of the Capitol Theatre staff at a reduced cost to the City; Now, Therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The City Manager of the City of Yakima is hereby authorized and directed to execute the
attached and incorporated Lease Agreement with The Tower, LLC for office space to house the
Capitol Theatre staff in the Tower building in downtown Yakima.
ADOPTED BY THE CITY COUNCIL this 20th day of August, 2013.
ATTEST:
Sonya Claar Tee, City Clerk
Micah Cawley, Mayor
ice
CITY OF'TAKIIIA
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Humpowilz
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1.1 LANDLORD: THE TOWER, LLC
ADDRESS: THE TOWER
402 E YAKIMA AVENUE SUITE 1200
YAKIMA WA 98901
Phone: (509) 248-4040
1.2 TENANT: CITTOF TAK*TIA
(Capitol'Theater Administrative Offices)
ADDRESS: 402 E YAKIMA AVENUE SUITE 280
PHONE NUMBER: (509) 853-8000 -ITI k9
1.3 PREMISES: The Tower, Yakima, Washington, Suite BW and
consisting of approximately 1216 square feet.
1.5 LEASE TERM- Two Yeaie
RE
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1.7 TERM TERMINATION DATE: July 31, 2015 3.0
EN
calendar month but subject to an automatic increase (bas
on the consumer price index) on August 1, 2014. •
1.8.1 Consumer Price Index Base Month: May 2013 4fi
1.8.2 Minimums and Maximums: Minimum- 3% 4J
Maximum- •♦
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1.0 BASIC LEASE PROVISIONS: The Basic Lease Provisions on the previous
pages (i) and (ii) are hereby incorporated into this Lease.
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NORTH YAKIMA, now YAKIMA, as re-recorded in Volume
"E" of Plats, Page 1, Records of the Auditor of Yakima
County, Washington,
This Lease is subject to the terms, covenants and conditions set forth
herein and Tenant and Landlord each covenant as a material yeart of the consideration for
this Lease to keep and perform each and all of said terms, covenants and conditions by it
to be kept and performed and that this Lease is made upon the condition of such
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4.2.1 'Publication Dates: In the event that the Index is published less
frequently than monthly, then the increase reflected in the next published Index
shall be used. All increases in Rent shall relate back to Rent payable since the
last Rent adjustment.
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square footage in The Tower available for lease. The Tenant's proportionate share of the
tax increase shall be adjusted April 1 of each year and shall be billed and paid monthly in
advance.
5.1 The Dernised Premises are to be used for the purpose of conducting
such business as is described in section 1.4 and for no other purpose.
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5.4 flazardous Substances: The following provisions regardins
hazardous substances are in addition to and not in lieu of the provisions of sections 5.1,
5.2 and 5.3 above.
(1) Comply promptly, timely, and completely with
governmental requirements for reporting, keeping and submitting manifest
and obtaining and keeping current identification numbers; i
IN N III Ir-1-31611KIIIII W I III
I (GARr-!W I a Lit via] IV I VZIM; IN I I 14 a 0 00 0 a IN a a 0
(3) Within five (5) days of Landlord's request, submit written
reports to Landlord regarding Tenant's use, storage, treatment,
transportation, generation, disposal or sale of Hazardous Substances and
provide evidence satisfactory to Landlord of Tenant's compliance with the
applicable governmental regulation;
(4) Allow Landlord or Landlord's agent or representative to conIZz
on the Premises at all times to check Tenant's compliance with a
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(6) Comply with all governmental rules, regulations ara
requirements regarding the proper and lawful use, sale, transportatio
generation, treatment, and disposal of Hazardous Substances. I
• • 1111- 1 ♦ �-
(1) Tenant shall be fully and completely liable to Landlord for am I
and all cleanup costs and any and all other charges, fees, penalties (cii
• imposed by governmental auth• respect
Tenant's use, disposal, generation and/or sale of . ••
Substances, in or about the Premises, Common Areas, or Building.
(2) Tenant shall indemnify, defend and hold Landlord harmless
from any and all of the costs, fees, penalties and charges assessed against
or imposed upon Landlord (as well as Landlord's attorneys fees and costs)
as a result of - disposal, ' • • ': • generation an• • -
of Hazardous
Upon Tenant's default • er this section 5.4, in addition to
entitled the rights and remedies set forth elsewhere in this Lease, Landlord shall be
to the following rights and remedies:
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................... , 111U1111
6.3 'Excess Heat and Electrical Use: Before installing any equipment
in the Dernised Premises that generates more than a minimum amount of heat, Tenant
shall obtain the written consent of Landlord, and Landlord may refuse to grant such
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7.Is QUIET ENJOYMENT: Landlord warrants and agrees to defend Tenant in the
quiet enjoyment and possession • the Dernised Premises during the term of this Lease
so long as Tenant complies with the provisions hereof and is not in default beyond any
applicable cure period.
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interference with Tenant's use of the Demised Premises, such interference shall
not relieve Tenant from the performance of its obligations hereunder.
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expenses, including reasonable attorneys fees, incurred on account of any claims of any
nature whatsoever for work done by or caused to be done by Tenant, or materials or
supplies furnished to Tenant, including lien claims of laborers, materialmen or others.
PAM
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13.2 Eire and Extended Coverage: Tenant shall procure and maintain
at its own cost during the term of this Lease and any extension hereof fire and extended
coverage insurance on property of Tenant in the amount of the full replacement valuls-
there•f.
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any damage to the property of Tenant or others entrusted to employees of the Building,
nor for the loss of or damage to any property • Tenant by theft or otherwise.
13.5 No Representation: Landlord makes no representation that the
limits of liability specified to be carried by Tenant under the terms hereof are adequate to
protect Tenant; if Tenant deems this insurance to be inadequate, Tenant shall, at its own
expense, provide such additional insurance as necessary.
I 1 0 a . •
15.2 Partial Taking: Subject to the provisions of the preceding section
15.1, in case of taking of a part of the Dernised Premises or a portion of the Building not
required for the reasonable use of the Demised Premises, then this Lease shall continue
in full force and effect, and the Rent shall be equitably reduced based on the proportion
by which the floor area of the Dernised Premises is reduced, such Rent reduction to be
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permitted assignment • subletting shall relieve Tenant • any of its obligations under this
Lease.
16.2 The consent by Landlord to any assignment, transfer, • subletting to
any party, including a subsidiary, affiliate • successor corporation, limited liability
company or partnership shall not be construed as a waiver or release of Tenant from the
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Tenant shall not mortgage • encumber this Lease without the prior written
consent • Landlord.
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18.1 Cumulative Remedies: All rights of Landlord herein enumerated
shall be cumulative, and none shall exclude any other right or remedy allowed by law. In
addition to the other remedies provided in this Lease, Landlord shall be entitled to restrain
by injunction the violation or attempted violation of any of the covenants, agreements or
conditions • this Lease.
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18.6 Nonpayment of Additional Rent: All costs and expenses which
Tenant assumes or agrees to pay to Landlord pursuant to this Lease shall be deemed
Additional Rent and, in the event of nonpayment thereof, Landlord shall have all the rights
and remedies herein provided for in case of non-payment of Rent.
18.7 Landlord's Lien- In addition to its statutory rights to a Landlord's
lien, the Tenant does hereby grant to the Landlord a lien for the payment of any amounts
of Rent due hereunder upon all of the Tenant's goods, wares, fixtures, furniture,
improvements and other tangible personal property of the Tenant.
20.0 SURRENDER: Upon the expiration or earlier termination of this Lease,
Tenant shall promptly quit and surrender to Landlord the Premises broom clean, in good
order and condition, ordinary wear and tear excepted, and Tenant shall remove all of its
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movable furniture and other effects. In the event Tenant fails to vacate the Dernised
Premises • a timely basis as required,. Tenant shall be responsible to Landlord for all
costs incurred by Landlord as a result of such failure, including, but not limited to, any
amounts required to be paid to third parties who were to have occupied the Dernised
Premises.
21.0 ACCEPTANCE OF PREMISES BY TENANT: Taking possession of the
Dernised Premises by Tenant shall be conclusive evidence as against Tenant that the
Dernised Premises were in the condition agreed upon between Landlord and Tenant, and
in writing to perform, except as otherwise set forth herein.
INJI 6�1
24.1 Landlord's Representative: Except as herein otherwise provided,
Landlord may act in any matter provided for herein • its building manager • any other
person who shall from time to time be designated in writing.
24.2 Notices: All notices or demands required or permitted to be given
to Landlord hereunder shall be in writing, and shall be deemed duly served when
received, if hand delivered, or five (5) calendar days after deposited in the United States
mail, with proper postage prepaid, certified or registered, return receipt requested,
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26.0 NAME OF BUILDING PROJECT: Landlord presently refers to the Building
Complex as THE TOWER and the Tower Annex. Landlord hereby reserves the right, al
any time and from time to time, without notice to Tenant, to change the name of the
Building Complex at Landlord's sole discretion and without any liability to Tenant for any
loss, costs, or expenses occasioned thereby.
27.0 ADMITTANCE BY PASS-KEY: Landlord shall not be liable for the
consequence of admitting by pass-key or refusing to admit to the Demised Premises
Tenant or any of Tenant's agents, employees or other persons claiming the right of
admittance.
28.0 WINDOWS: Tenant shall not allow anything to be placed on the outside
window ledges of the Demised Premises. No awnings shall be attached to the outside of
any windows of the Demised Premises. Only such window draperies furnished by
Landlord, which shall be uniform to building standards, shall be exposed to exterior views.
29.0 LIGHT AND AIR: This Lease does not grant any right of access to light, air,
or view over the property, and Landlord shall not be liable for any diminution of such light,
air
• view • any adjacent structure.
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purchaser of all or any portion of Landlord's interest herein, or a holder of any mortgage
encumbering any portion • the Building Complex. Tenant's failure to deliver such
statement within such time shall be a default under this Lease and shall be conclusive
M 707TIN 0 TM am 0 1
(a) This Lease is in full force and effect without modification except as
.nay be represented by Landlord;
01 H TIVIVIVITMIT7 � 11111
1! ISMITIMMIFIMIT11 11111 1
I
31.0 FINAL SIX MONTHS -- LANDLORD MXT-'§AQN, PREMISES: Landlord and
Landlord's agents shall have the right at reasonable hours to exhibit the Dernised
Premises to prospective purchasers and during the final six (6) months of the term hereof
• prospective Tenants.
I ii I •
32.2 Transfer of Landlord's Interest: The term "Landlord", as used in
this Lease, so far as covenants or obligations on the part of Landlord are concerned, shall
be limited to mean and include only the owner or owners of the Building at the time in
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32.5 Captions for i> - The captions of each - ♦ are
added as a matter of convenience only and shall be considered of no effect in the
construction of provision or provisions of -
32.6 ' Binding Upon Heirs and Assigns: Except as herein specifically
set forth, all terms, conditions and covenants to be observed and performed by the
parties hereto shall be applicable to and binding upon their respective heirs,
administrators, • and assigns.
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32.7 Joint and SdVeMl Liabill : If there is more than one entity or
person which or who are the Tenants under this Lease, the obligations imposed upon
Tenant under this Lease shall be joint and several.
32.9 Ri-ght to Change: Landlord shall have the right, without thereby
�granting an actual or constructive eviction or incurring any liability to Tenant thereof, to
construct other buildings or improvements in any plaza, or other area designated by
Landlord for use by tenants or to change the location, character, or make alterations of, or
2dditions to, any of said plazas, or other Building Complex areas.
32.10 Reoresentations bv Landlord: Tenant acknowledges and agrees
that it has not relied upon any statements, representations, agreements or warranties
except such as are expressed in this Lease.
32.12 Authority to Act: Tenant represents to Landlord that the party
executing this Lease is authorized to do so by requisite action of the Tenants Board of
Director or members, or partners, as the case may be, and agrees upon request to deliver
to Landlord a resolution or similar document to that effect.
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and Building as the same from time to time be encumbered, No personal liability or
personal responsibility is assumed by nor shall at any time be asserted or enforceable
against Landlord, the venturers comprising Landlord or their respective heirs, legal
representatives, successors or assigns on account of the Lease or on account of any
covenant, undertaking or agreement of Landlord in this Lease contained.
32.15 Force Maffieure: Except for the payment of Rent, Additional Rent or
other sums payable by Tenant, time periods for Tenant's or Landlord's performance
under any provisions • this Lease shall be extended day for day for periods of time
during which Tenant's or Landlord's performance is prevented due to circumstances
beyond Tenant's • Landlord's reasonable control.
33.0 GOVERNING LAW; ATTORNEYS FEES; VENUE: This Lease Agreement
shall be construed in accordance with the laws of the State of Washington. In the event
of any action arising hereunder, the prevailing party shall be granted its reasonable
attorneys fees and court costs. Venue for any such action shall be in the County of
YaUna.
34.0 ENTIRE AGREEMENT: This Lease, together with the exhibits attached
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so-wo- #
MR RMAWINIfl-
IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease the day
and year first above written.
THE TOWER, LLC
By: JEM Development Real Estate, In'l
General Manager
Joseph R. Morrier, Sr., President
1
STATE OF WASHINGTON)
LANDLORD'S
COUNTY OF YAKIMA ACKNOWLEDGMENT
1AXIIEVII
DATED*
Notary Public in and for the State of
(Stamp or Seal) Washington, residing at
My appointment expires:
STATE OF WASHINGTON)
) ss. TENANT'S
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79TOMMINVOWIM-MIETA IWTA • a
I certify that I know or have satisfactory evidence that
zigned this instrument and acknowledged it to be (his/her) free and voluntary act for the
uses and purposes mentioned in the instrument.
Notary Public in and for the State of
(Stamp or Seal) Washington, residing at
My appointment expires*
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