HomeMy WebLinkAbout5066 Contract Number: 5066
Vendor: CONNECTION CREDIT UNION, INC.
Subject Lease Agreement - 911 Park Avenue
Department: Fire
File Class: LEG 12 -1
Begin Date: 9/1/2011
End Date: 8/31/2012
Review Date
Vault Date*
Comments: Termination with 60 days notice; CLOSED_. Superseded
by Contract #5174
LEASE
This Lease is entered into this l day of f,�/�/'f�M�P✓ , 2011, between T�IE
CITY OF BREMERTON, a mumcipal corporahon, (heremafter referred to as "Lessor"), and
CONNECTION CREDIT UNION, INC., a not for profit corporation, (heremafter referred to as
"Lessee")
WHEREAS, Lessor and Lessee desires to enter mto a lease Agreement on September 1, 2011
("Lease Agreement") for certam real property, building and improvements identified herein, and
NOW, THEREFORE, for valuable consideration and by mutual consent of the parties,
present this Lease Agreement as follows
1. PREMISES. Lessor does, by these presence, owns a buildmg and appurtenances
("Improvements") situated upon real property commonly known as the Bremerton Fire Station #1
located at 911 Park Avenue, Bremerton, Washmgton and more particularly set forth m Exhibit A
attached hereto and mcorporated by reference (hereinafter collectively the "Premises") The
existing buildmg consists of approximately 12,500 square feet of floor area The proposed use to
the existmg building will consist of approximately 72 square feet of floor area In addition,
Lessee may schedule access to and use of common areas of the property such as kitchen area,
conference room and trammg room identified on Exhibrt "A "
2. TERM. This Lease shall commence on the date fully executed ("Commencement
Date") but no sooner than September 1, 2011 and shall end on August 31, 2012, unless otherwise
extended or termmated Lessee may termmate this lease at any time wrth sixty (60) days prior
written notice
3. CONSIDERATION.
(a) Rent. In addrtion to other consideration of this Lease, Lessee agrees to
pay Lessor, without notice or demand, the sum of three hundred and fifty dollars ($350 00) per
month ("Rent") which is mclusive of utility costs, m 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 durmg the term hereof In addrtion Lessee is
responsible for paymg Lease Hold Excise Tax
(b) Overdue Rent. Unpaid installments of the Monthly Rent or other sums
due hereunder shall, if not timely paid, be sub�ect to a later charge of Fifty and No/100 Dollars
($50 00) to cover the excess costs of admimstration and shall bear mterest from the date due of
12 percent (12%) until all rent and interest has been paid m full Lessee hereby further agrees to
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pay any attorneys' fees and expenses incurred by Lessor by reason of Lessee's failure to pay
Monthly Rent or other charges when due hereunder
(c) Holding Over. If Lessee remams 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 at a rental in the amount of
120% of the last Monthly Rent, plus all other charges and Additional Rent payable hereunder,
and upon all the terms hereof applicable to a month-to-month tenancy
4. USE OF PREMISES. Lessee's use and occupancy of the Premises shall be for
an office or for bankmg purposes, as well as use of the Premises needed to conduct the Lessee's
corporate activities No other use shall be allowed without the express written consent of the
Lessor
Lessee shall have access to the parkmg lot of the property for rt's employees and
members usage as mdentified in Exhibrt "A "
Lessee shall not use said Premises or any part thereof for any illegal purpose Lessee
agrees to conform to mumcipal, county, and state codes, statutes, ordmances, and regulations
concernmg the use and occupation of said Premises Lessee shall mamtam the Premises m
substantial conformance with all applicable provisions of mumcipal, county, and state codes,
statutes, ordinances, and regulations governing maintenance or operation of such Premises
Lessee shall, at its sole cost, promptly comply with all such laws and governmental rules Lessee
shall not commit or allow to be committed any hazardous waste m or upon the Premises
At the expiration of the agreement Lessee shall
(a) remove all trade fixtures and personal property from the Premises,
(b) remove all fixtures, additions, alterations, modifications or other improvements
mstalled m or made to the Premises after commencement of the Term by, through, at the request
of or on behalf of Lessee and restore the Premises as they existed immediately prior to the
makmg of improvements so removed, provided that Lessee shall not be required to so remove
any improvements for which Lessor agreed m wrrtmg prior to the time said improvements were
mstalled, that they would not need to be removed at the end of the Term, and
(c) surrender the Premises to Lessor in as good condition and state of repair as Lessor is
required to keep and maintain them pursuant to the Lease, reasonable wear and tear expected if
Lessee fails to remove any Improvements or restore the Premises as directed by Lessor pursuant
to (b) of this Paragraph 3 3, withm fifteen (15) days after receipt of wntten notice from Lessor,
Lessor may, at Lessee sole risk and expense, perform such removal or restoration (by contract or
otherwise) by the most expeditious means available to Lessor Lessee shall reimburse Lessor for
costs and expenses mcurred by Lessor to accomplish such removal and restoration Further, if
Lessee fails to remove all personal property from the premises upon the expiration of the term,
Lessor by remove and store such property m any place selected by Lessor at the sole risk and
expense of the Lessee
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ACKNOWLEDGEMENT OF LESSEE REGARDING USE OF PREMISES: Lessee
agrees and understands that the premises sub�ect to this lease is a public facility used for
emergency response purposes As such, the Lessee acknowledges that any and all disturbances,
includmg noise, smell, etc created or as a consequence of the Crty of Bremerton Fire
Department's use of the premises will not affect the Lessee's quiet en�oyment of the premises
5. UTILITIES. Lessor agrees to provide and pay all charges for heat, electricity,
gas, water, sewer and for all other utilrties which shall be used m the Premises durmg the full
term of this Lease, provaded, however, that Lessor shall not be responsible for failure of
provision of these services if due to causes beyond rts control and provtded, further, that Lessor
shall pay for any such charges as Lessor, in its reasonable discretion, may determine are the
consequence of special equipment employed by or special requirements of Lessor
6. AI.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
without the prior written consent of Lessor, and all improvements, alterataons, or changes so
made With respect to such alterahons, improvements or changes to the Premises requested by
Lessee, Lessor consent shall not be unreasonably withheld In the event Lessor consents to the
makmg of any alterations, addrtions, 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 mterest
therem shall remam free from any lien of any kmd whatsoever, and construction of such
alterations, addrtions or improvements shall be done m 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 bemg clean and in good order, condrtion, and repair
Lessee shall, at Lessee's expense, keep the Premises and every part thereof in good condrtion and
repair (except as heremafter provided with respect to Lessor obligations set forth in paragraph 7 2
below) Lessee shall, upon the expiration or sooner termination of this Lease, surrender the
Premises to Lessor m good condrtion, clean, excepting only ordmary 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 Obligations. Lessor shall, at Lessor's expense, repair and maintam
the structural portions of the Buildmg, mcludmg the roof, foundation, bearmg and extenor beams
and supports, floormg and subfloormg, plumbmg, pipes, electrical wirmg 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 anstng from the making of any
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repairs, alterations, or improvements m or to any portion of the Buildmg or the Premises or in or
to fixtures, appurtenances, and equipment if Lessor shall have taken every reasonable measure to
avoid any such m�ury and mterference
8. LIENS. Lessee shall keep the Premises, Lessee's leasehold mterest therem and
the Buildmg and Land on which the Premises are srtuated free from any liens arismg out of any
work performed, matenals furnished, or obligations incurred by Lessee
9. INDEMNIFICATION. Lessee shall mdemmfy, defend and hold Lessor
harmless from all loss damage, liability or expense resulting from any m�ury 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
Buildmg, but the foregoing provision shall not be construed to make Lessee responsible for
m�uries 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
properiy sustamed by Lessee, or other persons, which may be caused by theft or any act of
neglect of any Lessee or occupant of the buildmg, or of any other person, or by any other cause,
unless caused by the negligence of Lessor or its officers, licensees, agents, employees, guests,
mvrtees or visrtors
10. I.IABILIT�' INSURANCE;
11. (a) Liability Insurance. Lessee, at its own expense, shall provide and keep
m force wrth companies acceptable to Lessor comprehensive general liability msurance m the
amount of not less than One Million Dollars ($1,000,000 00) per occurrence for bodily in�ury and
property damage Lessee shall furnish Lessor with a certificate of such policy withm thirty (30)
days of the Commencement Date of this Lease and whenever required shall satisfy Lessor that
such policy is m full force and effect Such policy shall name Lessor as an addrtional insured and
shall be primary and noncontributing with any insurance carried by Lessor The policy shall
further provide that it shall not be canceled or altered without twenty (20) days prior written
notice to Lessor
12. PERSONAL PROPERTY. Where furmshed by or at the expense of Lessee, all
movable property, furnrture, furnishmgs and trade fixtures, other than those affixed to the
Premises so that they cannot be removed without material damage, shall remain the properly of
and be removable by Lessee, and in case of damage by reason of such removal, Lessee shall
restore the Premises, Buildmg or common areas to good order and condition Lessee shall pay or
cause to be paid before delmquency any and all taxes levied or assessed and which become
payable durmg the term hereof upon all Lessee's Lessee Improvements, equipment, furnrture,
fixtures, and other personal property located m the Premises
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13. ASSIGNIVIENT AND SUBLETTING. Lessee shall not either voluntarily or by
operation of law assign, transfer, mortgage, pledge hypothecate, or encumber this Lease or any
mterest therein and shall not sublet the Premises or any part thereof or any right or pnvilege
appurLessee thereto or allow any person (the employees, agents, servants, and invitees of Lessee
excepted) to occupy or use the Premises or any portion thereof, wrthout the prior written consent
of Lessor, which consent by Lessor shall not be unreasonably withheld Any such assignment or
sublettmg wrthout compliance with the terms of this paragraph shall be void and shall, at the
option of Lessor, constitute a default under the terms of this Lease If Lessee is a corporation,
any transfer of this Lease from Lessee by merger, consolidation, or liquidation or any change in
the ownership or power to vote m the ma�orrty of the outstandmg votmg stock of Lessee shall
constrtute an assignment for purposes of this paragraph Consent to one assignment, subletting,
occupation, or use by any other person shall not be deemed to be a consent to any subsequent
assignment, sublettmg, occupation, or use by another person Consent to any such assignment or
sublettmg shall m no way relieve Lessee of any liability under this Lease Lessor may assign the
Rent herem provided to any person, partnership, corporation, or bank, and Lessee agrees when
notified m writmg 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 of the followmg
events shall constitute a default and breach of this Lease by Lessee
(a) Abandonment. Lessee vacates or abandons the Premises,
(b) Failure to Pay Rent. Lessee fails to make any payment of Rent or any
other payment required to be made by Lessee hereunder, as and when due,
(c) Failure to Observe Other Covenants. Lessee fails to observe or perform
any of the covenants, conditions, or provisions of this Lease to be observed or performed by
Lessee where such failure shall contmue 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 m default if Lessee commences such cure withm said thirty (30) days and thereafter,
diligently prosecutes such cure to completion,
(d) Misrepresentation. Lessee makes or has made or furmshes or has
furnished any warranty, representation or statement to Lessor m connection wrth this Lease, or
any other agreement to which Lessee and Lessor are parties, which is or was false or misleading
m any material respect when made or furnished, or
(e) Insolvency. Lessee shall become insolvent or go mto bankruptcy
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15. R�MEDIES ON DEFAULT.
(a) Termination and Entry. In the event of any default or breach by Lessee, Lessor
may, at any hme thereafter with or without notice or demand in the exerc2se of a right or remedy
which Lessor may have be reason of such default or breach, termmate this Lease by written
notice to Lessee, revoke Lessee's right to any free Rent, reenter and take possession of the
Premises without termmation of this Lease, or pursue any remedy allowed by law Lessee agrees
to pay Lessor the cost of recovermg possession of the Premises, the expense of relettmg, and any
other costs or damages arismg out of Lessee's default mcluding, without limrtation, the costs of
removmg persons and property from the Premises, the costs of repairmg or altering the Premises
for relettmg, brokers' commissions, and legal expenses and fees Notwrthstandmg any
termmation, reentry, or relettmg, the liability of Lessee for the Rent and Addrtionai Rent for the
balance of the term of this Lease shall not be extinguished and Lessee shall pay and Lessor may
recover from Lessee at the time of termmation, reentry, or relettmg, the excess, if any, of the
amount of the Rent reserved m this Lease for the balance of the term hereof over the then
reasonable rental value of the Premises for the same period Reasonable rental value shall mean
the amount of rental which Lessor does or could reasonably be expected to obtam as rent for the
remaimng balance of the Lease term In the event that Lessor relets the Premises or any part
thereof without first termmatmg Lessee's right to possession pursuant to tlus Lease, Lessor
reserves the right, at any time thereafter, to elect to termmate Lessee's right to possession to that
portion of the Premises for the default that originally resulted in the relettmg
(b) Removal of Personal Property. In the event of a retakmg of possession
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 m any place
selected by Lessor, including but not limited to a public warehouse, at the expense and risk of
Lessee If Lessee shatl fail to pay the cost of stormg 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 properiy 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 stormg 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 heremafter described shall be
cumulative and Lessor shall be entitled to pursue any other remedy now or hereafter available to
Lessor under the law or�udicial decisions of the State of Washmgton
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16. �,ESSOR'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 penod of thirty (30) days after written notice thereof by Lessee to Lessor,
provided, however, that if the 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 withm 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. �IAZARDOUS SUBSTANCES. Lessee shall not generate, release, spill, store,
deposit, transport, or dispose of (collectively "Release") any hazardous substances, sewage,
petroleum products, hydrocarbons, radioactive substances, medicmal, bacteriological, or disease-
producmg substances, hazardous materials, toxic substances or any pollutants or substances
defined as hazardous or toxic m accordance with applicable federal, state, and local laws and
regulations ("Hazardous Substances") in, on or about the Premises Lessee shall indemmfy,
defend and hold Lessor harmless from any and all claims, liabilities, losses, damages, cleanup
costs, response costs, and expenses (includmg reasonable attorneys' fees) arismg 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 occurrmg at any time after
the Commencement Date and arismg out of the activities of Lessee, or any of its agents,
representatives or employees The provisions of this paragraph shall survive termmation or
expiration of this Lease
18. GENERAL PROVISIONS. Lessor and Lessee agree to the followmg general
provisions
(a) Waiver. No waiver of default by either party of any of the terms,
covenants and condrtions 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
condihons herem contamed, 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 condrtion 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 headmgs of this Lease
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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 condrtions herein contained,
sub�ect to the provisions as to assignment, apply to bmd the heirs, successors, executors,
administrators, and assigns of the parties hereto
(e) Recordation. Nerther Lessor nor Lessee shall record this Lease, but a
short form memorandum hereof may be recorded at the request of Lessor
(� Quiet Possession. Upon Lessee paying the Rent reserved hereunder and
performmg all of the covenants, condrtions, 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, sub�ect to all the provisions of this Lease The Premises are leased sub�ect to any and all
existing encumbrances, conditions, rights, covenants, easements, restrictions, rights-of-way, and
any matters of record, applicable zomng and buildmg laws, and such matters as may be disclosed
by mspection or survey
(g) Prior Agreements. This Lease contams all of the agreements of the
parties hereto wrth respect to any matter covered or mentioned m this Lease and no prior
agreements or understandmgs pertammg to any such matters shall be effective for any purpose
No provision of this Lease may be amended or added to except by agreement m wrrting signed by
the parties hereto or their respective successors m mterest This Lease shall not be effective or
bmding upon any party until fully executed by both parties hereto
(h) Inability to Perform. The time period wrthm which any party is to fulfill
an obligation of such the party under this Lease shall be extended by such time penod that any
party is unable to fulfill any of its obligations hereunder or is delayed m 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
mvalid, void, or illegal shall in no way affect, impair, or mvalidate any other provision hereof
and such other provision shall remam in full force and effect
(j) Cumulative Remedies. No remedy or election hereunder shall be deemed
exclusive but shall whenever possible be cumulative wrth all other remedies at law or in equrty
(k) Choice of Law. This Lease shall be construed under all of the applicable
laws, statutes, ordmances, rules and regulations of the Umted States, the State of Washmgton,
County of Krtsap, and the City of Bremerton In the case of a dispute between the parties, venue
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over such dispute shall be with the Superior Court of Krtsap County, Waslungton
(1) Execution. This Lease may be executed m several counterparts, each of
which shall be deemed an origmal instrument
(m) Notices. All notices to be given hereunder shall be in writing and shall be
personally delivered and receipt acknowledged, sent by Umted States certified mail, return
receipt requested, sent by facsimile, wrth original delivered wrthin 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 herem set forth
To Lessor Fire Chief
Crty of Bremerton
911 Park Avenue
Bremerton, WA 98337
To Lessee
Connection Credit Umon
P O Box 3990
Silverdale, WA 98383
It is understood that each party may change the address to which notice may be sent by givmg a
written notice of such change to the other party hereto in the manner herein provided
(n) Lessee's Corporate Authority. Lessee is a Washmgton corporation, and
each mdividual executmg this Lease on behalf of said corporation represents and warrants that he
or she is duly authonzed 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 m
accordance with the bylaws of said corporation, and that this Lease is bmdmg upon said
corporation m accordance with its terms Lessee further represents and warrants that rt is fully
registered and qualified to do business in the State of Washmgton
IN WITNESS WHEREOF, the parties hereto have executed this Lease the day and year
first above written
LESSOR
CITY OF BREMERTON
LESSEE
CONNECTION CREDIT UNION
/ �
By Pa L nt
Its M or
By S�o ft �i o►t.
Its ���sr`dc•�f f CEO
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STATE OF WASHINGTON
COUNTY OF KITSAP
)
) ss
)
I certify that I know or have satisfactory evidence that Patty Lent is the person who appeared
before me, and said person acknowledged that he signed this mstrument, 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 m
the instrument
DATED
I�lOTAi3Y Pt18LiC
STATE OF WqSNiNGTON
CAROL L ETGEN
COMMISSION E)(pIRES 12/18/2012
STATE OF WASHINGTON )
) ss
COUNTY OF KITSAP )
NOTARY PUBLIC m or he State of
Washmgton, residing at IG �"
My commission expires �/ /c'� �'
I certify that I know or have satisfactory evidence that SCO� �rL�R� -
is the person who appeared before me, and said person acknowledged that he/she signed this
instrument, on oath stated that he/she was authonzed to execute the mstrument and
acknowledged it as the ��si�eAt C Oof , o e the free and voluntary ��nrirc7fi'Dh
act of such Corporation for the uses and purposes mentioned in the mstrument ����-
DATED �2,�`tCt'yl.�'a�, 1� ZOI I
R �L.egal�Forrns�Real
����iiiiii���
.�l e n _ ��
NOTARY PUBLIC in and for the State of
Washmgton, residmg at d�?'l�"�'1L�'I Qf
My commission expires lD f2�1 / I�a
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