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HomeMy WebLinkAbout4590 Contract Number 4590 Vendor BREMER CONSOLIDATED TRUST Sub�ect Lease - 900 Pacific Avenue Department Econ Devel File Class LEG 12-1 Begin Date 2/1/2007 End Date 8/31/2010 Review Date Vault Date 9/1/2012 Comments B Municipal Court vacated property at 900 Pacific Avenue on 8/31/10 _ _ _ _ � __�_ -- ,��� �..,- `' ' r ' __: _�= -; , BREMER'�Ol�D � �� „ IV�IJNICIPd\L. C011RT — P� � � � b O D D m ^ r i � e s o W8 :F °G e 9 July 30, 2010 John Bremer and Edward Bremer Consolidated Trust c/o Bradley Scott, Inc 400 Warren Ave, #450 Bremerton, WA 98337 To Whom It May Concem Per our previous conversations, the Bremerton Murncipal Court has purchased a permanent property for the court at 550 Park Ave Bremerton, WA 98337 As of this date we have received notification that, barr�ng no ma�or catastrophes, we wdl obtam an occupancy permrt on August 27, 2010 Please take this letter as formal nottfication that the Bremerton Munic�pal Court intends to vacate the property located at 900 Pac�fic Ave, Bremerton, WA 98337 by August 31, 2010 and terminate its lease agreement with the John Bremer and Edward Bremer Consot�dated trust effective August 31, 2010 If you have any questions or concerns, please feel free to contact me at 360-473-5242 Respectfully, c�t�� Theresa Ewmg Court Adm�rnstrator Bremerton Murnc�pal Court cc Judge James Docter Mayor Patti Lent City Attomeys Office Contract Number: Vendor: Subject: Department: File Class: Begin Date: End Date: Review Date: Vault Date: Comments: 4590 BREMER CONSOLIDATED TRUST 900 Pacific Avenue - Municipal Court Econ Devel LEG 12-1 02/01/2007 01/31/2010 11/01/2009 If " LEASE This Lease is entered into this ,J f ~ay of ~~.. A ,2009, between JOHN BREMER AND EDWARD BREMER CONSOLID ED TR~ST, a non-profit corporation, (hereinafter referred to as "Lessor"), and THE CITY OF BREMERTON, a municipal corporation, (hereinafter referred to as "Lessee"). WHEREAS, Lessor owns certain real property which Lessee agrees to lease for a municipal court and other related public purposes, NOW, THEREFORE, the Lessor and Lessee agree as follows: 1. PREMISES. Lessor does, by these presence, lease to the Lessee a building and appurtenances ("Improvements") situate upon real property commonly known as the Federal Building located at 900 Pacific Avenue, Bremerton, Washington and more particularly set forth in Exhibit A attached hereto and incorporated by reference and parking on adjoining real property located on Pleasant Avenue and more particularly set forth in Exhibit B attached hereto and incorporated by reference (hereinafter collectively the "Premises"). The existing building consists of approximately 7,143 square feet of floor area. The adjoining parking contains approximately 21 parking spaces. 2. TERM. The term of this lease shall be for one year commencing February 1, 2009, ("Commencement Date") and ending January 31, 2010, unless otherwise extended or terminated. If Lessee remains in possession of the Premises or any part thereof after the expiration of the term of this Lease without the express written consent of Lessor, such occupancy shall be a tenancy from month-to-month. 3. CONSIDERATION. Monthly Payment. In addition to other consideration of this Lease, Lessee agrees to pay Lessor, without notice or demand, the sum (based on $9.84 per square foot annually) of Five Thousand Eight Hundred Fifty-five dollars and 751100 ($5,855.75) per month ("Lease Payment"), in advance, on or before the first day of the first full calendar month of the term hereof and a like sum on or before the first day of each and every successive calendar month thereafter during the term hereof. 4. USE OF PREMISES. Lessee's use and occupancy of the Premises shall be for a municipal court and other related public purposes. 5. UTILITIES. Lessee agrees to provide and pay all charges for water, sewer, power, garbage pickup, janitorial and for all other utilities which shall be used in the Premises during the full term of this Lease. Municipal Court ... 6. ALTERATIONS AND ADDITIONS. Lessee shall not make or allow to be made any alterations, improvements, or changes to or of the Premises or any party thereof without the prior written consent of Lessor, and all improvements, alterations, or changes so made shall become a part of the lease Premises and shall belong to Lessor upon expiration or sooner termination of this Lease. With respect to such alterations, improvements or changes to the Premises requested by Lessee, Lessor's consent shall not be unreasonably withheld. In the event Lessor consents to the making of any alterations, additions, or improvements to the Premises by Lessee, the same shall be made by Lessee at Lessee's sole cost and expense, the Premises and Lessee's leasehold interest therein shall remain free from any lien of any kind whatsoever, and construction of such alterations, additions or improvements shall be done in compliance with all laws and governmental requirements. 7. MAINTENANCE AND REPAIRS. (a) Lessee's Obligations. By taking possession of the Premises, Lessee shall be deemed to have accepted the Premises as being clean and in good order, condition, and repair. Lessee shall, at Lessee's expense, keep the Premises and every part thereof in good condition and repair (except as hereinafter provided with respect to Lessor's obligations set forth in paragraph 7.2 below). Lessee shall, upon the expiration or sooner termination of this Lease, surrender the Premises to Lessor in good condition, clean, excepting only ordinary wear and tear and destruction or damage by such conditions over which Lessee has no control, or such damage as may be due to the failure of Lessor to comply with any covenant herein contained to be performed by Lessor. Damage caused by Lessee's use of the Premises shall be repaired at the sole cost and expense of Lessee. (b) Lessor's Obligations. Lessor shall, at Lessor's expense, repair and maintain the structural portions of the Building, including the roof, foundation, bearing and exterior beams and supports, flooring and subflooring, plumbing, pipes, electrical wiring and conduits within and serving the premises. There shall be no abatement of Rent and no liability of Lessor by reason of any injury to or interference with Lessee's business arising from the making of any repairs, alterations, or improvements in or to any portion of the Building or the Premises or in or to fixtures, appurtenances, and equipment if Lessor shall have taken every reasonable measure to avoid any such injury and interference. 8. LIENS. Lessee shall keep the Premises, Lessee's leasehold interest therein and the Building and Land on which the Premises are situated free from any liens arising out of any work performed, materials furnished, or obligations incurred by Lessee. 9. INDEMNIFICATION. Lessee shall indemnifY, defend and hold Lessor harmless from all loss damage, liability or expense resulting from any injury to any person or any loss of or damage to any property caused by or resulting from any act or omission of Lessee or any officer, agent, employee, guest, invitee or visitor of Lessee in or about the Premises or the Building, but the foregoing provision shall not be construed to make Lessee responsible for injuries to third parties caused by the negligence of Lessor or any officer, agent, employee, guest, 2 Municipal Court invitee or visitor of Lessor. Lessor shall not be liable for any loss or damage to person or property sustained by Lessee, or other persons, which may be caused by theft or any act of neglect of Lessee or occupant of the building, or of any other person, or by any other cause, unless caused by the negligence of Lessor.or its officers, licensees, agents, employees, guests, invitees or visitors. 10. LIABILITY INSURANCE; HAZARD INSURANCE. (a) Lia ility Insurance. Lessee, at its own expense, shall provide and keep -MIl in force comprehensive gene liability insurance in the amount of not less than One Million r Dollars ($1,000,000.00 per occu e for bodily injury and property dama Lessee shall furnish Lessor with a certificate of suc licy within thi s of the Commencement Date of this Lease and whenever required !sfY Lessor that such policy is in full force and effect. Such policy shall name r as an add!' al insured and shall be primary and noncontributing wi Insurance carried by Lessor. ic shall further provide that it shall not be celed without twenty (20) days prior written notice essor. (b) Hazard Insurance. Throughout the term of this Lease, Lessor shall procure and maintain fire, hazard and extended coverage insurance on the Improvements. Should the property become uninhabitable due to loss or become uninhabitable for any other reason the City shall have the option of terminating this lease. 11. PERSONAL PROPERTY. Where furnished by or at the expense of Lessee, all movable property, furniture, furnishings and trade fixtures, other than those affixed to the Premises so that they cannot be removed without material damage, shall reIT\ain the property of and be removable by Lessee, and in case of damage by reason of such removal, Lessee shall restore the Premises, Building or common areas to good order and condition. Lessee shall payor cause to be paid before delinquency any and all taxes levied or assessed and which become payable during the term hereof upon all Lessee's Improvements, equipment, furniture, fixtures, and other personal property located in the Premises 12. ENTRY BY LESSOR. At any and all reasonable times during regular business hours, upon one (1) day's prior notice to Lessee, Lessor reserves and shall have the right to enter the Premises to inspect the same a reasonable number of times, to submit the Premises to prospective purchasers or Lessees, to repair the Premises and any portion of the Building that Lessor may deem necessary or desirable, without abatement of Rent, and may for the purpose erect scaffolding and other necessary structures where reasonably required by the character of the work to be performed, always providing that the entrance to the Premises shall not be blocked thereby and further providing that the business of Lessee shall not be interfered with unreasonably. Lessee hereby waives any claim for damages or for any injury or inconvenience to or interference with Lessee's business or any loss of occupancy or quiet enjoyment of the Premises, and any other loss occasioned thereby, if Lessor shall have taken every reasonable measure to avoid any such injury, inconvenience or interference. Lessor shall have the right to use any and all means which Lessor may deem proper to open any doors or otherwise obtain 3 Municipal Court access to the Premises in an emergency, without liability to Lessee except for any failure to exercise due care for Lessee's property, and any entry to the Premises obtained by Lessor by any of said means or otherwise shall not under any circumstances be construed or deemed to be a forcible or unlawful entry into or a detainer of the Premises or an eviction of Lessee from the Premises or any portion thereof. 13. ASSIGNMENT AND SUBLETTING. Lessee shall not either voluntarily or by operation of law assign, transfer, mortgage, pledge hypothecate, or encumber this Lease or any interest therein and shall not sublet the Premises or any part thereof or any right or privilege appurtenance thereto or allow any person (the employees, agents, servants, and invitees of Lessee excepted) to occupy or use the Premises or any portion thereof, without the prior written consent of Lessor, which consent by Lessor shall not be unreasonably withheld. Any such assignment or subletting without compliance with the terms of this paragraph shall be void and shall, at the option of Lessor, constitute a default under the terms ofthis Lease. Consent to one assignment, subletting, occupation, or use by any other person shall not be deemed to be a consent to any subsequent assignment, subletting, occupation, or use by another person. Consent to any such assignment or subletting shall in no way relieve Lessee of any liability under this Lease. Lessor may assign the Rent herein provided to any person, partnership, corporation, or bank, and Lessee agrees when notified in writing by the assignee of such assignment to make the Rent payments to assignee under the terms of said assignment. 14. LESSEE'S DEFAULT. The occurrence of any one or more ofthe following events shall constitute a default and breach of this Lease by Lessee. (a) Abandonment. Lessee vacates or abandons the Premises; (b) Failure to Pay Lease Payment. Lessee fails to make any payment of the Lease Payment or any other payment required to be made by Lessee hereunder; (c) Failure to Observe Other Covenants. Lessee fails to observe or perform any of the covenants, conditions, or provisions ofthis Lease to be observed or performed by Lessee where such failure shall continue for a period of thirty (30) days after written notice thereof by Lessor to Lessee; provided, however, that if the nature of Lessee's default is such that more than thirty (30) days are reasonably required for such cure, then Lessee shall not be deemed to be in default if Lessee commences such cure within said thirty (30) days and thereafter, diligently prosecutes such cure to completion. 15. REMEDIES ON DEFAULT. (a) Termination. In the event Lessee fails to cure such default, Lessor may, at any time thereafter, terminate this Lease by written notice to Lessee. Lessee may also seek any other remedy provided by law. (b) Removal of Personal Property. In the event of a retaking of possession 4 Municipal Court of the Premises by Lessor, Lessee shall remove all personal property located thereon and upon failure to do so upon demand of Lessor, Lessor may remove and store the same in any place selected by Lessor, including but not limited to a public warehouse, at the expense and risk of Lessee. If Lessee shall fail to pay the cost of storing any such property after it has been stored for a period of thirty (30) days or more, Lessor may sell any or all of such property at a public or private sale and shall apply the proceeds of such sale first to the cost of such sale, secondly to the payment of the charges for storage, if any, and thirdly to the payment of any other sums of money which may be due from Lessee to Lessor under the terms of this Lease, and the balance, if any, to Lessee. Lessee hereby waives all claims for damages that may be caused by Lessor's lawfully reentering and taking possession of the Premises or lawfully removing and storing the property of Lessee as herein provided and will save Lessor harmless from loss or damages occasioned by Lessor thereby, whether such lawful reentry shall be considered or construed to be a forcible entry. (e) Remedies Cumulative. The remedies hereinafter described shall be cumulative and Lessor shall be entitled to pursue any other remedy now or hereafter available to Lessor under the law or judicial decisions of the State of Washington. 16. LESSOR'S DEFAULT. Lessor fails to observe or perform any of the covenants, conditions, or provisions of this Lease to be observed or performed by Lessor, where such failure shall continue for a period of thirty (30) days after written notice thereof by Lessee to Lessor; provided, however, that ifthe nature of Lessor's default is such that more than thirty (30) days are reasonably required for such cure, then Lessor shall not be deemed to be in default if Lessor commences such cure within said thirty (30) days and thereafter, diligently prosecutes such cure to completion. In the event Lessor fails to cure such default, Lessee may, at any time thereafter, terminate this Lease by written notice to Lessor. Lessee may also seek any other remedy provided by law. 17. EMINENT DOMAIN. Ifthe whole of the Premises (or the whole or part of the Building or Improvements) shall be acquired or condemned by eminent domain for any public or quasi-public use, or if a part of the Premises is so taken so that the Premises are rendered unsuitable for the business of Lessee, then the term of this Lease shall terminate as of the date title or possession shall be transferred in such proceeding, whichever shall occur first. In the event of a partial taking or condemnation which is not extensive enough to render the Premises unsuitable for the business of Lessee, then Lessor shall restore the Premises to a condition comparable to its condition immediately prior to such taking less the portion lost in the taking, and this Lease shall continue in full force and effect provided, however, that the monthly Rent shall abate in the same ratio that the portion of the Premises so taken bears to the whole of the Premises.. Lessor shall have the right to receive the compensation of damages awarded upon either such total or partial taking and Lessee shall have no claim thereto; provided that Lessee may independently pursue an award or compensation to Lessee for the taking of Lessee's personal property or fixtures Qr for the interruption of or damage to Lessee's business and for any other interest of Lessee. 5 Municipal Court 18. HAZARDOUS SUBSTANCES. Lessee shall not generate, release, spill, store, deposit, transport, or dispose of (collectively "Release") any hazardous substances, sewage, petroleum products, hydrocarbons, radioactive substances, medicinal, bacteriological, or disease- producing substances, hazardous materials, toxic substances or any pollutants or substances defined as hazardous or toxic in accordance with applicable federal, state, and local laws and regulations ("Hazardous Substances") in, on or about the Premises. Lessee shall indemnify, defend and hold Lessor harmless from any and all claims, liabilities, losses, damages, cleanup costs, response costs, and expenses (including reasonable attorneys' fees) arising out of or in any way related to the Release by Lessee, or any of its agents, representatives, or employees, or the presence of such Hazardous Substances in, on or about the Premises occurring at any time after the Commencement Date and arising out of the activities of Lessee, or any of its agents, representatives or employees. The provisions of this paragraph shall survive termination or expiration of this Lease. 19. GENERAL PROVISIONS. Lessor and Lessee agree to the following general prOVlSlons: (a) Waiver. No waiver of default by either party of any of the terms, covenants and conditions hereof to be performed, kept and observed by the other party shall be construed as, or operate as, a waiver of any subsequent default of any of the terms, covenants and conditions herein contained, to be performed, kept and observed by the other party. The subsequent acceptance of Rent hereunder by Lessor shall not be deemed to be a waiver of any preceding default by Lessee of any term, covenant, or condition of this Lease other than the failure of Lessee to pay the particular rental so accepted, regardless of Lessor's knowledge of such preceding default at the time of the acceptance of such Rent. (b) Time. Time is of the essence of this Lease and each and all of its provisions in which performance is a factor. (c) Paragraph Headings. The paragraph or section headings of this Lease are not a part of this Lease and shall have no effect upon the construction or interpretation of any part hereof. (d) Successors and Assigns. The covenants and conditions herein contained, subject to the provisions as to assignment, apply to bind the heirs, successors, executors, administrators, and assigns of the parties hereto. (e) Recordation. Neither Lessor nor Lessee shall record this Lease, but a short form memorandum hereof may be recorded at the request of Lessor. (t) Quiet Possession. Upon Lessee paying the Rent reserved hereunder and performing all of the covenants, conditions, and provisions on Lessee's part to be observed and performed hereunder, Lessee shall have quiet possession of the Premises for the entire term hereof, subject to all the provisions of this Lease. The Premises are leased subject to any and all 6 Municipal Court existing encumbrances, conditions, rights, covenants, easements, restrictions, rights-of-way, and any matters of record, applicable zoning and building laws, and such matters as may be disclosed by inspection or survey. (g) Prior Agreements. This Lease contains all of the agreements of the parties hereto with respect to any matter covered or mentioned in this Lease and no prior agreements or understandings pertaining to any such matters shall be effective for any purpose. No provision of this Lease may be amended or added to except by agreement in writing signed by the parties hereto or their respective successors in interest. This Lease shall not be effective or binding upon any party until fully executed by both parties hereto. (h) Inability to Perform. The time period within which any party is to fulfill an obligation of such the party under this Lease shall be extended by such time period that any party is unable to fulfill any of its obligations hereunder or is delayed in doing so, if such inability or delay is caused by reason of strike, labor troubles, acts of God, or any other cause beyond the reasonable control of such party. (i) Severability. Any provisions of this Lease which shall prove to be invalid, void, or illegal shall in no way affect, impair, or invalidate any other provision hereof and such other provision shall remain in full force and effect. (j) Cumulative Remedies. No remedy or election hereunder shall be deemed exclusive but shall whenever possible be cumulative with all other remedies at law or in equity. (k) Choice of Law. This Lease shall be construed under all of the applicable laws, statutes, ordinances, rules and regulations of the United States, the State of Washington, County of Kitsap, and the City of Bremerton. In the case of a dispute between the parties, venue over such dispute shall be with the Superior Court of Kitsap County, Washington. (I) Execution. This Lease may be executed in several counterparts, each of which shall be deemed an original instrument. (m) Notices. All notices to be given hereunder shall be in writing and shall be personally delivered and receipt acknowledged, sent by United States certified mail, return . receipt requested, sent by facsimile, with original delivered within three (3) days, or sent by overnight delivery through public or private service, delivery charge prepaid, and addressed to the party at the respective mailing address as herein set forth. To Lessor: John Bremer and Edward Bremer Consolidated Trust c/o Bradley Scott, Inc. 400 Warren Avenue, #450 Bremerton, W A 98337 7 Municipal Court To Lessee: ~ S€!ero~ City of Bremerton 345 6th Street, Suite 600 Bremerton, W A 98337 It is understood that each party may change the address to which notice may be sent by giving a written notice of such change to the other party hereto in the manner herein provided. (n) Lessee's Corporate Authority. Lessee is a Washington corporation, and each individual executing this Lease on behalf of said corporation represents and warrants that he or she is duly authorized to execute and deliver this Lease on behalf of said corporation, in accordance with a duly adopted resolution of the board of directors of said corporation or in accordance with the bylaws of said corporation, and that this Lease is binding upon said corporation in accordance with its terms. Lessee further represents and warrants that it is fully registered and qualified to do business in the State of Washington. IN WITNESS WHEREOF, the parties hereto have executed this Lease the day and year first above written. LESSOR LESSEE JOHN BREMER AND EDWARD BREMER CONSOLIDATED TRUST /t! dJ c~ By: Mi~D. Connolly Its: Managing Trustee CITY OF BREMERTON f1c4.,~/;s By: ary Sexto~ Its: "'P (~~~~(t 1~ 1!""J)A.!tJHltt::.. "'])Ev. Notaries on Next Page Remainder of This Page Intentionally Blank 8 Municipal Court STATE OF WASHINGTON) ) ss. COUNTY OF KITSAP ) I certify that I know or have satisfactory evidence that Gary Sexton is the person who appeared before me, and said person acknowledged that he signed this instrument, on oath sta1Jd that he was authorized to execute the instrument, and acknowledged it as the~j~~~\l1e City of Bremerton to be the free and voluntary act of such City for the uses and purposes mentioned in the instrument. """"'''~ ,\~\ ED.: I I r4UvL1.{"~ ~?, \~ . . tl . . , . 0 , ..... Cl 19"" ! ()o"~OTA~y"'.L\. ~ . 0 ~ _ a . ~ ~ : MAY15,2010: ~ :: (/'l 0 0 .".,: :";..J,' oc;,~ ':.'.700 PUBL1C ,0,Of .' :A 0 0 ,,~ #'~, ~ e. o. 0......... .~. 0:..00000 0,-\ \~", ,f"" ,.... W^S~\,\" "1 n ,,\ II,,,,, 111 \ \ \ \ c:(otJ9 {'-A~0-/~ ~~" '--, NOT AR PUBLI in and for the~~)tate of Washington, residing at r:;::;..l (, ~~.A 7~) My commission expires$V.s1/0 ST ATE OF WASHINGTON) ) ss. COUNTY OF KITSAP ) I certify that I know or have satisfactory evidence that MICHAEL D. CONNOLLY is the person who appeared before me, and said person acknowledged that he signed this instrument, on oath stated that he was authorized to execute the instrument, and acknowledged it as the . Managing Trustee of the John Bremer and Edward Bremer Consolidated Trust to be the free and voluntary act of such Corporation for the uses and purposes mentioned in the instrument. DATED: NOTARY PUBLIC in and for the State of Washington, residing at My commission expires / / . R: \Legal\F orms\Real Estate\Leases\B uild ing\. doc 9 Municipal Court Vendor Subject Department Status Code Amount Begin Date End Date Review Date Insurance Comments Contract Number 4590 BREMER CONSOLIDATED TRUST 900 Pacific Avenue - Municipal Court Econ Devel BOG File Class LEG 16-3 $128574.00 02/01/2007 01/31l2009 12/01/2008 GL $ AL $ E&O $ Insurance Total $ Insurance Review Date CP~ & Additional Rent LEASE This Lease is entered into this /5dday of November, 2006, between JOHN BREMER AND EDWARD BREMER CONSOLIDATED TRUST, a non-profit corporation, (hereinafter referred to as "Lessor"), and THE CITY OF BREMERTON, a municipal corporation, (hereinafter referred to as "Lessee"). WHEREAS, Lessor owns certain real property which Lessee agrees to lease for a municipal court and other related public purposes, NOW, THEREFORE, the Lessor and Lessee agree as follows: 1. PREMISES. Lessor does, by these presence, lease to the Lessee a building and appurtenances ("Improvements") situate upon real property commonly known as the Federal Building located at 900 Pacific Avenue, Bremerton, Washington and more particularly set forth in Exhibit A attached hereto and incorporated by reference and parking on adjoining real property located on Pleasant Avenue and more particularly set forth in Exhibit B attached hereto and incorporated by reference (hereinafter collectively the "Premises"). The existing building consists of approximately 7,143 square feet of floor area. The adj oining parking contains approximately 22 parking spaces. 2. TERM. The term of this lease shall be for two years commencing February 1, 2007 or upon occupancy, whichever occurs first, ("Commencement Date") and ending January 31,2009, unless otherwise extended or terminated. If Lessee remains in possession of the Premises or any part thereof after the expiration of the term of this Lease without the express written consent of Lessor, such occupancy shall be a tenancy from month-to-month which may be terminated by either Lessor or Lessee by delivering written thirty (30) day notice of termination. 3. CONSIDERATION. (a) Base Rent. In addition to other consideration of this Lease, Lessee agrees to pay Lessor, without notice or demand, the sum (based on $9.00 per square foot annually) of Five Thousand Three Hundred Fifty Seven dollars and 251100 ($5,357.25) per month ("Lease Payment"), in advance, on or before the first day of the first full calendar month of the term hereof and a like sum on or before the first day of each and every successive calendar month thereafter during the term hereof. (b) Consumer Price Index Adjustments. The monthly Base Rent rate shall be adjusted at each annual anniversary date by using the revised Consumer Price Index (CPI) for all urban consumers as published by the United Stated Department of Labor for Seattle-Tacoma- Bremerton Average, all items (1982-84=100) or a comparable CPI index that is reasonably available and appropriate, as may be determined by the Lessor. The index used shall be for the 1 Municipal Court most current period preceding the month of the anniversary date. The percentage of change from the earlier index to the later index shall be multiplied by the Base Rent at the beginning of the Lease Year and the result added to the said beginning rate to arrive at the adjusted Base Rent, which will apply to each of the twelve (12) months of the succeeding Lease Year. Notwithstanding other provisions of this paragraph, the Base Rent payable by Lessee shall in no event be less than the Base Rent as may have been previously adjusted upward. Lessee may prepay these monthly payments on a quarterly, semi-annual or annual basis or as otherwise approved by the Lessor. (c) Additional Rent. In addition to the Base Rent, Lessee shall pay Additional Rent, which shall be comprised of the Property Taxes and Operating Expenses defined as follows: 1. Property Taxes The term "Property Taxes" shall include all real and personal property taxes, assessments, license fees, license tax, rental tax, levy, or tax on net income imposed by any governmental authority or agency on the Building and the Property and on all other improvements, fixtures, equipment and other property of Lessor located in or used in connection with the operation of the Building and the Property. 2. Operating Expenses The term "Operating Expenses" shall include the total amounts paid or payable by Lessor or others on behalf of Lessor in connection with the ownership and operation of the Building and the Property and shall include, (a) total charges of Lessor or any independent contractors employed in the care and management of the Property and/or the Building; (b) the amount paid for premiums of fire hazard and extended coverage as required in Section 10.(b) of this Lease. 3. Payment of Additional Rent Lessor may estimate the Additional Rent for each Lease Year and Lessee shall pay one-twelfth (1/12) of such estimated amount as Additional Rent on the 1st day of each month. Lessor shall give written notice of such estimated amount prior to the commencement of a Lease Year. Additional Rent shall be due and payable from date of occupancy. 4. USE OF PREMISES. Lessee's use and occupancy of the Premises shall be for a municipal court and other related public purposes. 5. UTILITIES. Lessee agrees to provide and pay all charges for water, sewer, power, garbage pickup, janitorial and for all other utilities which shall be used in the Premises during the full term of this Lease. 6. AL TERATIONS AND ADDITIONS. Lessee shall not make or allow to be made any alterations, improvements, or changes to or of the Premises or any party thereof 2 Municipal Court without the prior written consent of Lessor, and all improvements, alterations, or changes so made shall become a part of the lease Premises and shall belong to Lessor upon expiration or sooner termination of this Lease. With respect to such alterations, improvements or changes to the Premises requested by Lessee, Lessor's consent shall not be unreasonably withheld. In the event Lessor consents to the making of any alterations, additions, or improvements to the Premises by Lessee, the same shall be made by Lessee at Lessee's sole cost and expense, the Premises and Lessee's leasehold interest therein shall remain free from any lien of any kind whatsoever, and construction of such alterations, additions or improvements shall be done in compliance with all laws and governmental requirements by qualified city staff or licensed and bonded contractors. 7. MAINTENANCE AND REPAIRS. (a) Lessee's Obligations. By taking possession of the Premises, Lessee shall be deemed to have accepted the Premises as being clean and in good order, condition, and repair. Lessee shall, at Lessee's expense, keep the Premises and every part thereof in good condition and repair (except as hereinafter provided with respect to Lessor's obligations set forth in paragraph 7.(b) below). Lessee shall, upon the expiration or sooner termination of this Lease, surrender the Premises to Lessor in good condition, clean, excepting only ordinary wear and tear and destruction or damage by such conditions over which Lessee has no control, or such damage as may be due to the failure of Lessor to comply with any covenant herein contained to be performed by Lessor. Damage caused by Lessee's use of the Premises shall be repaired at the sole cost and expense of Lessee. (b) Lessor's Obligations. Lessor shall, at Lessor's expense, repair and maintain the structural portions of the Building, including the roof, foundation, bearing and exterior beams and supports and exterior walls (excluding glass). There shall be no abatement of Rent and no liability for Lessor by reason of any injury to or interference with Lessee's business arising from the making of any repairs, alterations, or improvements in or to any portion of the Building or the Premises or in or to fixtures, appurtenances, and equipment if Lessor shall have taken every reasonable measure to avoid any such injury and interference. 8. LIENS. Lessee shall keep the Premises, Lessee's leasehold interest therein and the Building and Land on which the Premises are situated free from any liens arising out of any work performed, materials furnished, or obligations incurred by Lessee. 9. INDEMNIFICATION. Lessee shall indemnify, defend and hold Lessor harmless from all loss damage, liability or expense resulting from any injury to any person or any loss of or damage to any property caused by or resulting from any act or omission of Lessee or any officer, agent, employee, guest, invitee or visitor of Lessee in or about the Premises or the Building, but the foregoing provision shall not be construed to make Lessee responsible for injuries to third parties caused by the negligence of Lessor or any officer, agent, employee, guest, invitee or visitor of Lessor. Lessor shall not be liable for any loss or damage to person or property sustained by Lessee, or other persons, which may be caused by theft or any act of 3 Municipal Court neglect of Lessee or occupant of the building, or of any other person, or by any other cause, unless caused by the negligence of Lessor or its officers, licensees, agents, employees, guests, invitees or visitors. 10. LIABILITY INSURANCE; HAZARD INSURANCE. (a) Liability Insurance. Lessee, at its own expense, shall provide and keep in force comprehensive genera1liabi1ity insurance in the amount of not less than One Million Dollars ($1,000,000.00 per occurrence for bodily injury and property damage. Lessee shall furnish Lessor with a certificate of such policy within thirty (30) days of the Commencement Date of this Lease and whenever required shall satisfy Lessor that such policy is in full force and effect. Such policy shall name Lessor as an additional insured and shall be primary and noncontributing with any insurance carried by Lessor. The policy shall further provide that it shall not be canceled without twenty (20) days prior written notice to Lessor. (b) Hazard Insurance. Throughout the term of this Lease, Lessor shall procure and maintain fire, hazard and extended coverage insurance on the Improvements. Should the property become uninhabitable due to loss or become uninhabitable for any other reason the City shall have the option of terminating this lease. 11. PERSONAL PROPERTY. Where furnished by orat the expense of Lessee, all movable property, furniture, furnishings and trade fixtures, other than those affixed to the Premises so that they cannot be removed without material damage, shall remain the property of and be removable by Lessee, and in case of damage by reason of such removal, Lessee shall restore the Premises, Building or common areas to good order and condition. Lessee shall payor cause to be paid before delinquency any and all taxes levied or assessed and which become payable during the term hereof upon all Lessee's Improvements, equipment, furniture, fixtures, and other personal property located in the Premises. Lessee shall be responsible for all personal property insurance coverage during the term of this Lease. 12. ENTRY BY LESSOR. At any and all reasonable times during regular business hours, upon one (1) day's prior notice to Lessee, Lessor reserves and shall have the right to enter the Premises to inspect the same a reasonable number of times, to submit the Premises to prospective purchasers or Lessees, to repair the Premises and any portion of the Building that Lessor may deem necessary or desirable, without abatement of Rent, and may for the purpose erect scaffolding and other necessary structures where reasonably required by the character of the work to be performed, always providing that the entrance to the Premises shall not be blocked thereby and further providing that the business of Lessee shall not be interfered with unreasonably. Lessee hereby waives any claim for damages or for any injury or inconvenience to or interference with Lessee's business or any loss of occupancy or quiet enjoyment ofthe Premises, and any other loss occasioned thereby, if Lessor shall have taken every reasonable measure to avoid any such injury, inconvenience or interference. Lessor shall have the right to use any and all means which Lessor may deem proper to open any doors or otherwise obtain access to the Premises in an emergency, without liability to Lessee except for any failure to 4 Municipal Court exercise due care for Lessee's property, and any entry to the Premises obtained by Lessor by any of said means or otherwise shall not under any circumstances be construed or deemed to be a forcible or unlawful entry into or a detainer ofthe Premises or an eviction of Lessee from the Premises or any portion thereof. 13. ASSIGNMENT AND SUBLETTING. Lessee shall not either voluntarily or by operation of law assign, transfer, mortgage, pledge hypothecate, or encumber this Lease or any interest therein and shall not sublet the Premises or any part thereof or any right or privilege appurtenance thereto or allow any person (the employees, agents, servants, and invitees of Lessee excepted) to occupy or use the Premises or any portion thereof, without the prior written consent of Lessor, which consent by Lessor shall not be umeasonably withheld. Any such assignment or subletting without compliance with the terms ofthis paragraph shall be void and shall, at the option of Lessor, constitute a default under the terms of this Lease. Consent to one assignment, subletting, occupation, or use by any other person shall not be deemed to be a consent to any subsequent assignment, subletting, occupation, or use by another person. Consent to any such assignment or subletting shall in no way relieve Lessee of any liability under this Lease. Lessor may assign the Rent herein provided to any person, partnership, corporation, or bank, and Lessee agrees when notified in writing by the assignee of such assignment to make the Rent payments to assignee under the terms of said assignment. 14. LESSEE'S DEFAULT. The occurrence of any one or more ofthe following events shall constitute a default and breach of this Lease by Lessee. (a) Abandonment. Lessee vacates or abandons the Premises; (b) Failure to Pay Lease Payment. Lessee fails to make any payment of the Lease Payment or any other payment required to be made by Lessee hereunder; (c) Failure to Observe Other Covenants. Lessee fails to observe or perform any ofthe covenants, conditions, or provisions of this Lease to be observed or performed by Lessee where such failure shall continue for a period of thirty (30) days after written notice thereof by Lessor to Lessee; provided, however, that if the nature of Lessee's default is such that more than thirty (30) days are reasonably required for such cure, then Lessee shall not be deemed to be in default if Lessee commences such cure within said thirty (30) days and thereafter, diligently prosecutes such cure to completion. 15. REMEDIES ON DEFAULT. (a) Termination. In the event Lessee fails to cure such default, Lessor may, at any time thereafter, terminate this Lease by written notice to Lessee. Lessor may also seek any other remedy provided by law. (b) Removal of Personal Property. In the event of a retaking of possession of the Premises by Lessor, Lessee shall remove all personal property located thereon and upon 5 Municipal Court failure to do so upon demand of Lessor, Lessor may remove and store the same in any place selected by Lessor, including but not limited to a public warehouse, at the expense and risk of Lessee. If Lessee shall fail to pay the cost of storing any such property after it has been stored for a period of thirty (30) days or more, Lessor may sell any or all of such property at a public or private sale and shall apply the proceeds of such sale first to the cost of such sale, secondly to the payment of the charges for storage, if any, and thirdly to the payment of any other sums of money which may be due from Lessee to Lessor under the terms of this Lease, and the balance, if any, to Lessee. Lessee hereby waives all claims for damages that may be caused by Lessor's lawfully reentering and taking possession of the Premises or lawfully removing and storing the property of Lessee as herein provided and will save Lessor harmless from loss or damages occasioned by Lessor thereby, whether such lawful reentry shall be considered or construed to be a forcible entry. (c) Remedies Cumulative. The remedies hereinafter described shall be cumulative and Lessor shall be entitled to pursue any other remedy now or hereafter available to Lessor under the law or judicial decisions ofthe State of Washington. 16. LESSOR'S DEFAULT. Lessor fails to observe or perform any of the covenants, conditions, or provisions of this Lease to be observed or performed by Lessor, where such failure shall continue for a period of thirty (30) days after written notice thereof by Lessee to Lessor; provided, however, that ifthe nature of Lessor's default is such that more than thirty (30) days are reasonably required for such cure, then Lessor shall not be deemed to be in default if Lessor commences such cure within said thirty (30) days and thereafter, diligently prosecutes such cure to completion. In the event Lessor fails to cure such default, Lessee may, at any time thereafter, terminate this Lease by written notice to Lessor. Lessee may also seek any other remedy provided by law. 17. EMINENT DOMAIN. If the whole ofthe Premises (or the whole or part of the Building or Improvements) shall be acquired or condemned by eminent domain for any public or quasi-public use, or if a part of the Premises is so taken so that the Premises are rendered unsuitable for the business of Lessee, then the term of this Lease shall terminate as of the date title or possession shall be transferred in such proceeding, whichever shall occur first. In the event of a partial taking or condemnation which is not extensive enough to render the Premises unsuitable for the business of Lessee, then Lessor shall restore the Premises to a condition comparable to its condition immediately prior to such taking less the portion lost in the taking, and this Lease shall continue in full force and effect provided, however, that the monthly Rent shall abate in the same ratio that the portion of the Premises so taken bears to the whole of the Premises.. Lessor shall have the right to receive the compensation of damages awarded upon either such total or partial taking and Lessee shall have no claim thereto; provided that Lessee may independently pursue an award or compensation to Lessee for the taking of Lessee's personal property or fixtures or for the interruption of or damage to Lessee's business and for any other interest of Lessee. 6 Municipal Court 18. HAZARDOUS SUBSTANCES. Lessee shall not generate, release, spill, store, deposit, transport, or dispose of (collectively "Release") any hazardous substances, sewage, petroleum products, hydrocarbons, radioactive substances, medicinal, bacteriological, or disease- producing substances, hazardous materials, toxic substances or any pollutants or substances defined as hazardous or toxic in accordance with applicable federal, state, and local laws and regulations ("Hazardous Substances") in, on or about the Premises. Lessee shall indemnify, defend and hold Lessor harmless from any and all claims, liabilities, losses, damages, cleanup costs, response costs, and expenses (including reasonable attorneys' fees) arising out of or in any way related to the Release by Lessee, or any of its agents, representatives, or employees, or the presence of such Hazardous Substances in, on or about the Premises occurring at any time after the Commencement Date and arising out of the activities of Lessee, or any of its agents, representatives or employees. The provisions of this paragraph shall survive termination or expiration of this Lease. 19. GENERAL PROVISIONS. Lessor and Lessee agree to the following general prOVIsIOns: (a) Waiver. No waiver of default by either party of any of the terms, covenants and conditions hereof to be performed, kept and observed by the other party shall be construed as, or operate as, a waiver of any subsequent default of any of the terms, covenants and conditions herein contained, to be performed, kept and observed by the other party. The subsequent acceptance of Rent hereunder by Lessor shall not be deemed to be a waiver of any preceding default by Lessee of any term, covenant, or condition of this Lease other than the failure of Lessee to pay the particular rental so accepted, regardless of Lessor's knowledge of such preceding default at the time of the acceptance of such Rent. (b) Time. Time is of the essence of this Lease and each and all of its provisions in which performance is a factor. (c) Paragraph Headings. The paragraph or section headings of this Lease are not a part of this Lease and shall have no effect upon the construction or interpretation of any part hereof. (d) Successors and Assigns. The covenants and conditions herein contained, subj ect to the provisions as to assignment, apply to bind the heirs, successors, executors, administrators, and assigns of the parties hereto. (e) Recordation. Neither Lessor nor Lessee shall record this Lease, but a short form memorandum hereof may be recorded at the request of Lessor. (1) Quiet Possession. Upon Lessee paying the Rent reserved hereunder and performing all of the covenants, conditions, and provisions on Lessee's part to be observed and performed hereunder, Lessee shall have quiet possession of the Premises for the entire term hereof, subject to all the provisions of this Lease. The Premises are leased subject to any and all 7 Municipal Court existing encumbrances, conditions, rights, covenants, easements, restrictions, rights-of-way, and any matters of record, applicable zoning and building laws, and such matters as may be disclosed by inspection or survey. (g) Prior Agreements. This Lease contains all of the agreements of the parties hereto with respect to any matter covered or mentioned in this Lease and no prior agreements or understandings pertaining to any such matters shall be effective for any purpose. No provision of this Lease may be amended or added to except by agreement in writing signed by the parties hereto or their respective successors in interest. This Lease shall not be effective or binding upon any party until fully executed by both parties hereto. (h) Inability to Perform. The time period within which any party is to fulfill an obligation of such the party under this Lease shall be extended by such time period that any party is unable to fulfill any of its obligations hereunder or is delayed in doing so, if such inability or delay is caused by reason of strike, labor troubles, acts of God, or any other cause beyond the reasonable control of such party. (i) Severability. Any provisions of this Lease which shall prove to be invalid, void, or illegal shall in no way affect, impair, or invalidate any other provision hereof and such other provision shall remain in full force and effect. (j) Cumulative Remedies. No remedy or election hereunder shall be deemed exclusive but shall whenever possible be cumulative with all other remedies at law or in equity. (k) Choice of Law. This Lease shall be construed under all of the applicable laws, statutes, ordinances, rules and regulations of the United States, the State of Washington, County of Kitsap, and the City of Bremerton. In the case of a dispute between the parties, venue over such dispute shall be with the Superior Court of Kit sap County, Washington. (I) Execution. This Lease may be executed in several counterparts, each of which shall be deemed an original instrument. (m) Notices. All notices to be given hereunder shall be in writing and shall be personally delivered and receipt acknowledged, sent by United States certified mail, return receipt requested, sent by facsimile, with original delivered within three (3) days, or sent by overnight delivery through public or private service, delivery charge prepaid, and addressed to the party at the respective mailing address as herein set forth. To Lessor: John Bremer and Edward Bremer Consolidated Trust c/o Bradley Scott, Inc. 400 Warren Avenue, #450 Bremerton, W A 98337 8 Municipal Court To Lessee: City of Bremerton 345 6th Street, Suite 600 Bremerton, W A 98337 It is understood that each party may change the address to which notice may be sent by giving a written notice of such change to the other party hereto in the manner herein provided. (n) Lessee's Corporate Authority. Lessee is a Washington corporation, and each individual executing this Lease on behalf of said corporation represents and warrants that he or she is duly authorized to execute and deliver this Lease on behalf of said corporation, in accordance with a duly adopted resolution of the board of directors of said corporation or in accordance with the bylaws of said corporation, and that this Lease is binding upon said corporation in accordance with its terms. Lessee further represents and warrants that it is fully registered and qualified to do business in the State of Washington. IN WITNESS WHEREOF, the parties hereto have executed this Lease the day and year first above written. LESSOR LESSEE JOHN BREMER AND EDWARD BREMER CONSOLIDATED TRUST CITY OF BREMERTON e' ", By: Cary Bozeman Its: Mayor By: Mich . Connolly Its: Managing Trustee Notaries on Next Page Remainder of This Page Intentionally Blank 9 Municipal Court STATE OF WASHINGTON) ) ss. COUNTY OF KlTSAP ) I certify that I know or have satisfactory evidence that Cary Bozeman is the person who appeared before me, and said person acknowledged that he signed this instrument, on oath stated that he was authorized to execute the instrument, and acknowledged it as the Mayor of the City of Bremerton to be the free and voluntary act of such City for the uses and purposes mentioned in the instrument. :'0 DATED~' L :1;)\ V r'.- :</ O....i} & ., .......'1""" "" Ci A...~ . ,~\'6."U,v '". ~ /~J (t.o':.~\' ,'~+-~v.'~ (-1 " (l_\ 0 T A ~ '~.,o "..-;P ~~ . "'". ".i)~' ((V), >' 'f)' ;;:.\..).::. . y,( . t)"....'..( . \'I<f). 'oo_,C'bU',) : W~o<J'.?7_0~" ~ \J~" 0 '. .... ~o. ... y.:- \lv.~ C:Ll\~0 \.\.:. 1",\c.P STATE OF WASHINGTON) ) ss. COUNTY OF KlTSAP ) ~~v NOTARY PUBLIC in and for the State of Washington, residing at ~<<~ J1!,,<. My commission expire8-'3~1"7 I certify that I know or have satisfactory evidence that MICHAEL D. CONNOLLY is the person who appeared before me, and said person acknowledged that he signed this instrument, on oath stated that he was authorized to execute the instrument, and acknowledged it as the Managing Trustee of the John Bremer and Edward Bremer Consolidated Trust to be the free and voluntary act of such Corporation for the uses and purposes mentioned in the instrument. DATED: ~_!J..-1f(~~~(/I\ ,: ~ .':'t..""ISS/O.A:-' ~ I, - .'o~' 'v'. '" , ; :'0 NO~ ~...("" ~ ,. '-1~ '1:1' ~ ~ ~ en : '" '7)... iJ: j) ~ ~ -4: ..0 ..... m: 0 ~ ~ ~ \ V8Lle 0/ ; I;~.& .- i$. 10"':'9_07 ....~.: " ~" .' O~- 'I, Vl..........:'\ .:- II" VASH\t.\G ".....-- R:\Legal\Forms\Real Estate\Lea~~sml1liJdm~aoc NOTARY PUBLIC in and for the State ot; Washington, residing at Pcn.:r ()/l cJU)./). d<..J My commission expires q / fer o. 7 10 Municipal Court LEGAL DESCRIPTION The legal description below is for the subject property within the attached Lease Agreement induding the properties known as 900 Pacific Avenue having Kitsap County tax account parcel number 132401-3-073-2008 and as 915 Pleasant Avenue having Kitsap County tax account parcel number 132401-3-047-2001. EXHIBIT A - 900 Pacific Avenue - 132404-3-073-2008 That portion of Government Lot 2, Section 13, Township 24 North, Range 1 East, W.M., in Kitsap County, Washington, described as follows: Beginning 930 feet North of the Northwest comer of Block 5, Town of Bremerton, according to plat recorded in Volume 2 of Plats, page 30,; thence East 100 feet; thence North 87 feet; thence West 100 feet; thence South 87 feet to the point of beginning. EXHIBIT B - 915 Pleasant Avenue -132401-3-047- 2001 The North 72 feet of the following described portion of Government Lot 2, Section 13, Township 24 North, Range 1 East, W.M. described as follows: Beginning 930 feet north and 100 feet east of the northwest comer of Block 5, Town of Bremerton, according to plat recorded in Volume 2 of Plats, Page 30, thence East 110 feet; thence North 106 feet; thence West 110 feet; thence South 106 feet to the point of beginning. 11 Municipal Court