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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 .� from • Humpowilz IIIIIIEFT-Mr-Ale :4 3 4:4 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 ME wo M 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- •♦ Iii N k, U91110 I ii iftshared\legal assistanAtower leases\city of yakirna - capitol theatre pgi.doc 7/1512013 M, 1.0 BASIC LEASE PROVISIONS: The Basic Lease Provisions on the previous pages (i) and (ii) are hereby incorporated into this Lease. ki 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 iAshmmdVegm|mmsistonNuwerleaneo\cityo[yeWmame88Uleaoa.doc i:\sharedVego|aooistant\towarleaoeo\cityofyakknmmm80Oleasodvr 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. 3 iAshamdVeQu|oasistan8owerleameo\cityofyukimaste8DOleooe.duo 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. 4 i:\shared\IegaI assistanNower leases\city of Yakima ste 880 lease.doc 7/15/2013 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 5 i:\shared\IegaI assistanAtower leases\city of yakima ste 880 lease.doc 7/15/2013 (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: 6 iAsharedilegal assistanNower leaseslcity of yakima ste 880 lease.doc 7/15/2013 ................... , 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 7 iAshared\legal assistanNower leases\city of Yakima ste 880 lease.doc 7/15/2013 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. 8 hshared\legal assistanNower leases\city of yakima ste 880 lease.doc 7/15/2013 interference with Tenant's use of the Demised Premises, such interference shall not relieve Tenant from the performance of its obligations hereunder. 9 i:\shared\IegaI assistantVower leases\city of yakima ste 880 lease.doc 7/15/2013 10 ishoredVsga|assistont\towerleaseo\cityofyekimosteO0Oleaoedoo 7/15/2O13 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 11 hshared\legal assistanNower leases\city of Yakima ste 880 lease.doc 7/15/2013 12 i:\shared\legal assistant\tower leases\city of yakima ste 880 lease.doc 7/15/2013 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. oil �Tl 9 -0 0 M 9 13 iAshared\legal assistanNower leases\city of yakima ste 880 lease.doc 7/15/2013 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 14 iAshared\legal assistanNower leases\city of Yakima ste 880 lease.doc 7/15/2013 15 i:\shared\legal assistant\tower leases\city of Yakima ste 880 lease.doc 7/15/2013 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 16 6shared\legal assistanNower leasesNcity of yakima ste 880 lease.doc 7/15/2013 Tenant shall not mortgage • encumber this Lease without the prior written consent • Landlord. : I a 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. 17 i:\shared\1ega1 assistanNower leases\city of yakima ste 880 lease.doc 7/15/2013 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 19 |1ohoedUego|auoistanNuwe leaneo\cityofyokinosta8OOleaso.doo 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, 20 iAshared\legal assistanNower leases\city of Yakima ste 880 lease.doe 7/15/2013 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. 21 iAshared\legal assistanNower leases\city of yakima ste 880 lease.doc 7/15/2013 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 22 i:\shared\IegaI assistanNower leases\city of Yakima ste 880 lease.doc 7/15/2013 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. 23 is \shared \legal assistant \tower leases\city of yakima ste 880 lease.doc 7/16/2013 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. 24 iAshomdVego|eomiston8owerleames\cityofyakmasteOBVleasa.dnc 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 25 iAshared\legal assistantVower leases\city of yakima ste 880 lease.doc 7/15/2013 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 26 iAshared\legal assistanNower leases\city of yakima ste 880 lease.doc 7/15/2013 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* 27 hshared\legal assistanNower leases\city of yakima ste 880 lease.doc 7115/2013 EXHIBIT "A" m m N y � v V'1 T \ TI C. \ \ N +� O +� I I .TrJ �iJ Elow nooR THE TOWER FOR JEM DEVELOPMENT COMPANY YAKIAK WA 111 p L� AltldY/P Lil/NR �rRwra ro „A.r a lem ac RirBaa.cra oR ro w * AO i!lC++A44 FY M DEVELOPMENT COMPANY �UICKi ^rY1 4 AV WGIP R SYSfCY rlCCri AS y.v BE .,,. r+r �Al�rn..v nrr ar ._". ��o.. i .. ...