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5174
CONNECTION CREDIT UNION, INC.
Lease Agreement - 911 Park Avenue
Fire
LEG 12-1
8/21/2012
8/31/2014
2016
LEASE
Tlus Lease is entered mto this � St day of l4u�vs'f"' , 2012, between THE
CITY OF BREMERTON, a murucipal corporation, (hereinafter 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, buildmg and improvements identified herem, 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, Washington and more particularly set forth in E�ibrt A
attached hereto and mcorporated by reference (heremafter collectively the "Premises") The
existmg building consists of approximately 12,500 square feet of floor area The proposed use to
the existing buildmg 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 latchen area,
conference room and trairung room identified on Exhibit "A "
2. TERM. Tl�us Lease shall commence on the date fully executed ("Commencement
Date") but no sooner than September 1, 2012 and shall end on August 31, 2014, unless otherwise
extended or termmated Lessee may termmate this lease at any time with sixty (60) days pnor
written notice
3. CONSIDERATION.
(a) Rent. In addition to other consideration of tlus Lease, Lessee agrees to
pay Lessor, wrthout notice or demand, the sum of three hundred and sixty dollars (360 00) per
month ("Rent") which is inclusive 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 dunng the term hereof Effective September 1, 2013,
the lease will be mcreased based upon 100% of the Seattle/Tacoma/Bremerton CPI-W In
addrtion Lessee is responsible for paymg Lease Hold Excise Tax
(b) Overdue Rent. Unpaid mstallments 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
Connectron Credrt Union
12 percent (12%) until all rent and mterest has been paid m full Lessee hereby further agrees to
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 Addrtional 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 banking purposes, as well as use of the Premises needed to conduct the Lessee's
corporate activrties No other use shall be allowed without the express wntten consent of the
Lessor
Lessee shall have access to the parlcmg lot of the property for rt's employees and
members usage as mdentified m Exlubrt "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
concermng the use and occupation of said Premises Lessee shall mamtain the Premises in
substantial conformance wrth all applicable provisions of murucipal, county, and state codes,
statutes, ordmances, 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 commrt or allow to be committed any hazardous waste in 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, addrtions, 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 pnor to the
makmg of improvements so removed, provided that Lessee shall not be required to so remove
any improvements for which Lessor agreed in wntmg pnor to the time said improvements were
installed, 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 maintam 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 tlus Paragraph 3 3, within fifteen (15) days after receipt of wntten notice from Lessor,
Lessor may, at Lessee sole nsk and expense, perform such removal or restoration (by contract or
otherwise) by the most expedrtious means available to Lessor Lessee shall reimburse Lessor for
costs and expenses incurred by Lessor to accomplish such removal and restoration Further, if
Lessee fails to remove all personal properiy from the premises upon the expiration of the term,
Lessor by remove and store such property in any place selected by Lessor at the sole nsk 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 facilrty used for
emergency response purposes As such, the Lessee acknowledges that any and all disturbances,
mcludmg noise, smell, etc created or as a consequence of the City 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, electncity,
gas, water, sewer and for all other utilrties wluch shall be used m the Premises durmg the full
term of tlus Lease, provtded, however, that Lessor shall not be responsible for failure of
provision of these services if due to causes beyond rts control and provided, further, that Lessor
shall pay for any such charges as Lessor, m its reasonable discretion, may determme are the
consequence of special equipment employed by or special requirements of Lessor
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 pnor wntten consent of Lessor, and all improvements, alterahons, or changes so
made Wrth respect to such alterations, 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 kind whatsoever, and construction of such
alterations, addrtions or improvements shall be done in compliance wrth 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, condition, and repair
Lessee shall, at Lessee's expense, keep the Premises and every part thereof in good condrtion and
repair (except as heremafter provided wrth respect to Lessor obligations set forth m paragraph 7 2
below) Lessee shall, upon the expiration or sooner termination of tlus Lease, surrender the
Premises to Lessor m good condrtion, clean, excepting only ordmary wear and tear and
destruction or damage by such conditions over wluch 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 mamtain
the structural portions of the Building, mcluding the roof, foundation, bearmg and extenor beams
and supports, floonng and subfloonng, plumbmg, pipes, electrical winng and condurts witlun
and serving the premises There shall be no abatement of Rent and no liability of Lessor by
reason of any m�ury to or mterference wrth Lessee's business ansing from the making of any
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repairs, alterations, or improvements m 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 in�ury and mterference
8. LIENS. Lessee shall keep the Premises, Lessee's leasehold interest therein and
the Buildmg and Land on wluch the Premises are situated free from any liens ansmg out of any
work performed, matenals furmshed, or obligations incurred by Lessee
9. INDEMNIFICATION. Lessee shall mdemmfy, defend and hold Lessor
harmless from all loss damage, liabilrty or expense resulring from any in�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, mvrtee or visitor of Lessee m or about the Premises or the
Buildmg, but the foregomg provision shall not be construed to make Lessee responsible for
in�unes to tlurd parhes caused by the negligence of Lessor or any officer, agent, employee, guest,
mvitee or visrtor 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 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. LIABILITY INSURANCE;
11. (a) Liability Insurance. Lessee, at its own expense, shall provide and keep
m force with companies acceptable to Lessor comprehensive general liability insurance in the
amount of not less than One Million Dollars ($1,000,000 00) per occurrence for bodily m�ury and
property damage Lessee shall furnish Lessor v�nth a certificate of such policy wrtlun 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 msured and
shall be pnmary and noncontnbutmg with any msurance carried by Lessor The policy shall
further provide that rt shall not be canceled or altered without twenty (20) days pnor wntten
notice to Lessor
12. PERSONAL PROPE1tTY. Where furmshed by or at the expense of Lessee, all
movable property, funuture, furnishmgs and trade fixtures, other than those affixed to the
Premises so that they cannot be removed without matenal damage, shall remam the property of
and be removable by Lessee, and m 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, furmture,
fixtures, and other personal property located in the Premises
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13. , ASSIGNMENT AND SUBLETTING. Lessee shall not erther voluntanly or by
operation of law assign, transfer, mortgage, pledge hypothecate, or encumber tlus Lease or any
interest therem 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 mvitees of Lessee
excepted) to occupy or use the Premises or any portion thereof, wrthout�the pnor wntten consent
of Lessor, which consent by Lessor shall not be unreasonably wrthheld Any such assignment or
subletting wrthout compliance with the terms of this pazagraph shall be void and shall, at the
option of Lessor, constrtute 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 m
the ownerslup or power to vote in the ma�onty of the outstanding voting stock of Lessee shall
constrtute an assignment for purposes of tlus paragraph Consent to one assignment, sublettmg,
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
sublettmg shall in no way relieve Lessee of any liabilrty under tlus Lease Lessor may assign the
Rent herem provided to any person, partnerslup, corporation, or bank, and Lessee agrees when
notified m wrrtmg by the assignee of such assignment to make the Rent payments to assignee
under the terms of said assignment
14. I.ESSEE'S DEFAULT. The occurrence of any one or more of the following
events shall constrtute 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 tlus Lease to be observed or performed by
Lessee where such failure shall contmue for a penod of thirty (30) days after wntten notice
thereof by Lessor to Lessee, provided, however, that if the nature of Lessee's default is such that
more than tlurty (30) days are reasonably required for such cure, then Lessee shall not be deemed
to be m default if Lessee commences such cure wrthin said thirty (30) days and thereafter,
diligently prosecutes such cure to completion,
(d) Misrepresentation. Lessee makes or has made or furrushes or has
furrushed any warranty, representation or statement to Lessor in connection with this Lease, or
any other agreement to wluch Lessee and Lessor are parties, wluch is or was false or misleading
m any material respect when made or furrushed, or
(e) Insolvency. Lessee shall become msolvent or go mto bankruptcy
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15. REMEDIES ON DEFAULT.
(a) Termination and Entry. In the event of any default or breach by Lessee,
Lessor may, at any time thereafter with or wrthout notice or demand in the exercise of a nght or
remedy which Lessor may have be reason of such default or breach, termmate this Lease by
written notice to Lessee, revoke Lessee's nght to any free Rent, reenter and take possession of the
Premises without termination of tlus Lease, or pursue any remedy allowed by law Lessee agrees
to pay Lessor the cost of recovenng possession of the Premises, the expense of relettmg, and any
other costs or damages arismg out of Lessee's default mcludmg, without limrtation, the costs of
removmg persons and property from the Premises, the costs of repainng or altenng the Premises
for relettmg, brokers' commissions, and legal expenses and fees Notwithstanding any
termmation, reentry, or reletting, the liability of Lessee for the Rent and Addrtional Rent for the
balance of the term of tlus Lease shall not be extmguished 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 in tlus Lease for the balance of the term hereof over the then
reasonable rental value of the Premises for the same penod Reasonable rental value shall mean
the amount of rental wluch Lessor does or could reasonably be expected to obtam as rent for the
remairung balance of the Lease term In the event that Lessor relets the Premises or any part
thereof without first terminating Lessee's nght to possession pursuant to tlus Lease, Lessor
reserves the nght, at any time thereafter, to elect to termmate Lessee's right to possession to that
portion of the Premises for the default that ongmally resulted in the relettmg
(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
failure to do so upon demand of Lessor, Lessor may remove and store the same m any place
selected by Lessor, includmg but not limrted to a public warehouse, at the expense and nsk of
Lessee If Lessee shall fail to pay the cost of stonng any such property after it has been stored for
a penod of tlurty (30) days or more, Lessor may sell any or all of such property at a public or
pnvate 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 tlus Lease, and the balance, if any, to
Lessee Lessee hereby waives all claims for damages that may be caused by Lessor's lawfully
reentenng and takmg possession of the Premises or lawfully removing and stonng the property of
Lessee as herem 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 descnbed shall be
cumulative and Lessor shall be entrtled to pursue any other remedy now or hereafter available to
Lessor under the law or�udicial decisions of the State of Washmgton
16. LESSOR'S DEFAULT. Lessor fails to observe or perform any of the covenants,
conditions, or provisions of tlus Lease to be observed or performed by Lessor, where such failure
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Connection Credrt Union
shall contmue for a penod of tlurty (30) days after wntten 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 m default if Lessor
commences such cure wrthm said tlurty (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. HAZARDOUS SUBSTANCES. Lessee shall not generate, release, spill, store,
deposrt, transport, or dispose of (collectively "Release") any hazardous substances, sewage,
petroleum products, hydrocarbons, radioactive substances, medicmal, bactenological, or disease-
producmg substances, hazardous matenals, 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") m, on or about the Premises Lessee shall mdemmfy,
defend and hold Lessor harmless from any and all claims, liabilities, losses, damages, cleanup
costs, response costs, and expenses (mcludmg reasonable attorneys' fees) arismg out of or in any
way related to the Release by Lessee, or any of rts agents, representatives, or employees, or the
presence of such Hazardous Substances in, on or about the Premises occurnng at any time after
the Commencement Date and arismg out of the activrties of Lessee, or any of rts agents,
representatives or employees The provisions of tlus paragraph shall survive termination or
expiration of this Lease
18. GENERAL PROVISIONS. Lessor and Lessee agree to the following general
provisions
(a) Waiver. No waiver of default by erther 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
condrtions herem 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 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 tlus Lease and each and all of its
provisions m which performance is a factor
(c) Paragraph Headings. The paragraph or section headmgs of this Lease
are not a part of this Lease and shall have no effect upon the construction or mterpretation of any
part hereof
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(d) Successors and Assigns. The covenants and conditions herem contamed,
sub�ect to the provisions as to assignment, apply to bmd the heirs, successors, executors,
admimstrators, and assigns of the parties hereto
(e) Recordation. Neither Lessor nor Lessee shall record tlus Lease, but a
short form memorandum hereof may be recorded at the request of Lessor
(f) 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, sub�ect to all the provisions of tlus Lease The Premises are leased sub�ect to any and all
exishng encumbrances, condrtions, nghts, covenants, easements, restnctions, nghts-of-way, and
any matters of record, applicable zomng and building 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 pnor
agreements or understandings pertairung 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 wrrtmg signed by
the parties hereto or their respective successors m interest This Lease shall not be effechve or
bmding upon any party until fully executed by both parties hereto
(h) Inability to Perform. The time penod withm which any party is to fulfill
an obligation of such the pariy under this Lease shall be extended by such time penod that any
party is unable to fulfill any of rts obligations hereunder or is delayed m doing so, if such
mabilrty or delay is caused by reason of stnke, labor troubles, acts of God, or any other cause
beyond the reasonable control of such party
(i) Severability. Any provisions of tlus Lease which shall prove to be
invalid, 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 equity
(k) Choice of Law. This Lease shall be construed under all of the applicable
laws, statutes, ordinances, rules and regulations of the Uruted States, the State of Washington,
County of Kitsap, and the Crty of Bremerton In the case of a dispute between the parties, venue
over such dispute shall be v�nth the Supenor Court of Krtsap County, Waslungton
(1) Execution. Tlus Lease may be executed m several counterparts, each of
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Connection Credit Union
which shall be deemed an original mstrument
(m) Notices. All notices to be given hereunder shall be in writmg and shall be
personally delivered and receipt acknowledged, sent by Umted States certified mail, return
receipt requested, sent by facsimile, with ongmal delivered wrthm three (3) days, or sent by
overnight delivery through public or pnvate service, delivery charge prepaid, and addressed to
the party at the respective mailmg address as herem set forth
To Lessor Fire Chief
City 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 pariy hereto m the manner herem provided
(n) Lessee's Corporate Authority. Lessee is a Waslungton corporation, and
each mdividual executmg tlus 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, m
accordance wrth a duly adopted resolution of the board of directors of said corporation or m
accordance wrth the bylaws of said corporation, and that tlus Lease is bmdmg upon said
corporation m accordance wrth its terms Lessee further represents and warrants that it is fully
registered and qualified to do busmess m the State of Waslungton
IN WITNESS WHEREOF, the parties hereto have executed this Lease the day and year
first above written
LESSOR
CITY OF BREMERTON
,
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C ' -�,
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LESSEE
CONNECTION CREDIT UNION
.
By �co*fi ,2�'0/!
Its Pr�s��eh�-� C �D
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STATE OF WASHINGTON )
) ss
COUNTY OF KITSAP )
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 tlus instrument, on oath stated that he
was authonzed to execute the mstrument, and acknowledged rt as the Mayor of the City of
Bremerton to be the free and voluntary act of such Crty for the uses and purposes mentioned in
the mstrument
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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 rt as the�{'-���t�C�D of to be the free and voluntary
act of such Corporation for the uses and pu�r�o�ses mentiori�e�in�t��ie ument
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