HomeMy WebLinkAbout5201 CITY OF BREMERTON INVOICE: MISC000585 PAGE 1
FINANCE DEPARTMENT DATE: Jul 12, 2023 OF 1
345 6TH STREET SUITE 100
BREMERTON,WA 98337-1891 SERVICE: MISCELLANEOUS
CUSTOMER P0:
PHONE: 360-473-5208x CUSTOMER PH: (206) 972-6711
FAX: 360-473-5200x TERMS: NET 15 DAYS
DUE DATE: Jul 27, 2023
CUSTOMER NO: 10484 SERVICE ADDRESS:
MUNDY JO HOLDINGS LLC MUNDY JO HOLDINGS LLC
2800 156TH AVE SE STE 135 2800 156TH AVE SE STE 135
BELLEVUE, WA 98007 BELLEVUE, WA 98007
DESCRIPTION QTY---- UNIT PRICE -TOTAL PRICE- TAX
MISC INCOME 1.00 5,000.00 5,000.00 N
RENEWAL OF LEASE FEE
TOTAL CHARGES: 5,000.00
TOTAL TAX: 0.00
TOTAL INVOICE: 5,000.00
PAYMENTS: 0.00
ADJUSTMENTS: 0.00
TOTAL DUE: 5,000.00
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Contract Number
Vendor•
Sub�ect.
Department:
File Class.
Begin Date.
End Date
Review Date•
Vault Date
Comments
5201
MUNDY JO HOLDINGS LLC
Parking Lease Agreement
City Clerk
LEG 12-1
8/7/2012
12/31/2023
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Name and Full Address
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Rsreement Rec Fee $ 81 00 i
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The Auditor/Recorder will rely on the mformation provided on the form The staff will not read the
document to verify the accuracy or completeness of the mdexmg mformation provided herem
Document Trtle(s)
Additional reference #'s on page
Addrtional Grantors on Page
Addrtional Grantee on Page
Reference Number(s) of related documents
Grantor(s)
Grantee(s)
Legal Description (abbreviated form i e Plat name, lot, block, section, township, range, quarter/quarter)
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Assessor's Properly Tax ParceUAccount Number
I � , am requestmg an emergency
nonstandard recordmg for an addrtional fee of $50 00 as provided m RCW 36 18 O10 I understand that
the recordmg processmg requirements may cover up or otherwise obscure some part of the text of the
origmal document.
Signature
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J \pubdocs\letters\cover letter � 09/2004
PARKING LEASE AGREEMENT
THIS LEASE AGREEMENT (hereinafter "Lease") is between the CITY OF
BREMERTON, a mumcipal corporation of the State of Washmgton, with offices located at 345
6th Street, Suite 600, Bremerton, Washmgton 98337 (heremafter "Crty"), and MUNDY JO
HOLDINGS, LLC, andlor assigns (heremafter "Lessee")
RECITALS
WHEREAS, the City owns certam property it uses as a parkmg lot, and
WHEREAS, it is the parties' desire to enter mto a one (1) year lease with options to
extend the lease each year, and
NOW, THEREFORE, the City and Lessee agree as follows
AGREEMENT
1. PROPERTY.
1 1 Pro e�rty Defined The City leases to Lessee and Lessee leases from the City the
four (4) full time parkmg spaces ("Parkmg Spaces") m the City of Bremerton surface parkmg lot
located on the southwest corner of Fourth Street and Park Avenue legally described m Exhibit A
(the "Property") A site plan is attached hereto as Exhibit B designatmg the four (4) Parkmg
Spaces location
1 2 Surve�Maps, and Plans Lessee is not relymg upon and the City is not makmg
any representations about any survey, plat, diagram, and/or legal description provided by the
City
2. USE.
2 1 Permitted Use Sub�ect to Section 3 3 below, Lessee, its retail tenant ("Retail
Tenant") located m the Park Avenue Plaza's southwest corner of Park Avenue and Burwell
Street, Bremerton, WA ("Retail Space"), and its Retail Tenant's guests may use the Parkmg
Spaces m connection with the operation of the Retail Tenant, and for no other busmess or
purpose, without the prior written consent of the City Lessee and its Retail Tenant shall be
responsible for mstallmg signage at the Parkmg Spaces and for momtormg and enforcmg
compliance with any parkmg restrictions they impose on the Parkmg Spaces Imtially, Lessee
mtends the Retail Tenant at the Retail Space to be a Jimmy John Sandwich Shop The Parking
Spaces shall not be used for illegal purposes It is agreed that this Lease shall not be construed as
the City's waiver of land use or building code provisions that would otherwise apply to any
improvements or uses of the site, provided, however, the City represents and warrants that the
Permitted Use is permrtted for the Parkmg Spaces
�CISE TP� EXE�P�' �IOU 0 � 2p12
Parkmg Lease Agreement
(Between Ctry of Bremerton and Mundy Jo Hold�ngs LLC) 1
2 2 Conformance with Laws Lessee shall, at all times, keep current and comply with
all conditions and terms of any permits, licenses, certificates, regulations, ordmances, statutes,
and other government rules and regulations regardmg its use or occupancy of the Property
2 3 Liens and Encumbrances Lessee shall keep the Parkmg Spaces free and clear of
any liens and encumbrances arismg out of or relatmg to its use or occupancy of the Parkmg
Spaces
3. TERM.
3 1 Term Defined The term of this Lease is one (1) year (the "Term"), begmnmg on
the issuance of certificate of occupancy for the Jimmy John's retail space m Park Avenue Plaza
(the "Commencement Date"), and endmg on the date one (1) year after the issuance of the
certificate of occupancy, as may be extended pursuant to Section 3 2 below (the "Termmation
Date"), unless termmated sooner under the terms of this Lease
3 2 Automatic Option to Extend The mitial Term of this Lease shall automatically
extend each year for an additional one (1) year period up to a m�imum of ten (10) years, unless
Lessee notifies the City m writing sixty (60) days prior to the expiration of the applicable Lease
Term that it is termmatmg the Lease Lessee may extend the mitial Term of this Lease for an
additional ten (10) year period (sub�ect to the same automatic extension procedure provided
herem), by notifymg the Crty sixty (60) days pnor to the expiration of the mrtial Term of its
election to extend the Term, accompanied with a payment of $5,000 ("Extension Payment") The
City shall have the right to relocate the Parkmg Spaces to similarly convement parkmg spaces
followmg sixty (60) days written notice to Lessee
3 3 Payment O tion In the event that a Jimmy John's sandwich shop permanently
ceases operatmg at the Retail Space dur�ng its imtial ten (10) year lease tertn, then Lessee shall
have the right to the contmued use of the Parkmg Stalls under this Lease, provided that Lessee
pays the City a one-time payment of $5,000 ("Parkmg Payment"), as may be reduced by the
terms of this Section The amount of the Parkmg Payment shall be reduced by ten percent (10%)
per year that Jimmy John's contmues to operate at the Retail Space durmg the mitial Term By
way of example, m the event Jimmy John's permanently ceases operating at the Premises after
year 5 of its Lease, then the Parkmg Payment would be reduced by 50°Io, and Lessee would owe
the City $2,500 00 for use of the Parkmg Spaces In the event Lessee elects not to pay the
Parkmg Payment, then this Lease shall termmate and Lessee shall have no further right to use the
Parkmg Spaces
4. LEASE PAYMENT & LEA5EHOLD EXCISE TAX.
4 1 Annual Payment Lessee shall pay to the City an annual payment of $10 The
first installment shall be due and payable on or before the Commencement Date, and subsequent
mstallments shall be due and payable on or before the first day of each renewal term
4 2 Payment Place Payment is to be made to the City of Bremerton, Attn Financial
Services, 345 6�' Street, Suite 600, Bremerton, Washmgton 98337
4.3. Leasehold Excise Tax. Lessee agrees to pay the leasehold excise tax pursuant to
Chapter 82 29A RCW currently m the amount of 12 84 percent and as may be ad�usted pursuant
to Ch 82 29A RCW. Smce use of the Parkmg Spaces was granted with the sale of certam
property by the City to Lessee, for purposes of assessment and payment of the leasehold excise
tax, the leasehold value of the Parking Spaces is based on the factors as set forth m Exhibit C in
the amount of $4,561 88 No ad�ustments will be made to the leasehold value during the term of
Parkmg Lease Agreement
(Between C�ry of Bremerton and Mundy Jo Hold�ngs, LLC) 2
this Lease, except that, for purposes of assessment and payment of the leasehold tax only, the
leasehold value will be ad�usted every five years durmg the term(s) of this Lease based upon the
prior five years' Consumer Price Index (CPI) for All Urban Consumers (CPI-U) as published by
the Umted States Department of Labor for Seattle-Tacoma-Bremerton, all items (1982-84=100)
For purposes of the CPI ad�ustment, the base shall be the June 2012 CPI mdex June to June every
five years (ie June 2012- June 2017) The CPI ad�ustment shall occur on the following January
l of each year during the term of this Agreement In addition, Lessee agrees to pay when due,
the leasehold excise tax, or any additional assessments thereto, with respect to any payment or
obligation hereunder, which is deemed by the State of Washmgton to be taxable rent under said
chapter and to mdemmfy and hold the City harmless from the same
Lessee shall pay quarterly to the City by the fifteenth day of the month followmg the end
of each quarter, or as otherwise requ�red by the State of Washington, the amount of the leasehold
taJC owmg Lessee may prepay these quarterly payments on a semi-annual or annual basis or as
otherwise approved by the City
5. REPAIRS AND MAINTENANCE
5 1 The City shall be responsible for mamtammg the Parkmg Spaces in substantially
the same condition as they are m at the commencement of this Lease, and the City shall ensure
that Lessee shall have reasonable access to the Parking Spaces throughout the Term of the Lease
6. DAMAGE TO PARKING SPACES.
6 1 Except to the extent caused by Lessee, the Retail Tenant or its patrons, if the
Parking Spaces are damaged, the same shall be repaired by the City Repairs shall be
accomplished with reasonable dispatch sub�ect to mterruptions and delays from labor disputes
and matters beyond the control of the City Durmg any period in which Lessee is unable to use
the Parkmg Spaces as a result of damage or destruction of the same, then the City shall provide
Lessee with suitable replacement spaces within a reasonable proximrty to the Retail Space
Furthermore, if the Parkmg Spaces are taken by emment domam, or the threat thereof, the City
shall use commercially reasonable efforts to assist Lessee with obtaimng suitable replacement
spaces withm a reasonable proximity to the Retail Space
7. ASSIGNMENT AND SUBLETTING.
7 1 City Consent Re uired Lessee shall not sell, convey, mortgage, assign, pledge,
sublet, or otherwise transfer or encumber all or any part of Lessee's interest in this Lease or the
Property without the City's prior written consent
7 2 Rent Payments Following Assi�nment The acceptance by the City of the
payment of rent followmg an assignment or other transfer shall not constitute consent to any
assignment or transfer
8. INDEMNIFICATION.
8 1 Each party shall mdemmfy, defend, and hold the other party harmless for its acts,
omissions or negligence relatmg to its performance of this Lease Agreement.
9. DEFAULT AND REMEDIES.
9 1 Acts Constitutmg Default - Lessee Lessee shall be m default of this Lease on the
occurrence of any of the following
Parkmg Lease Agreement
(Between C�ry of Bremerton and Mundy Jo Hold�ngs LLC) 3
(a) Failure to pay Rent or other expenses when due,
(b) Failure to comply with any law, regulation, policy, or order of any lawful
governmental authority,
(c) Failure to comply with any other provision of this Lease,
(d) Failure to cure a default pursuant to Section 9 2 below, or
(e) Proceedings are commenced by or agamst Lessee under any bankruptcy
act or for the appomtment of a trustee or receiver of Lessees' property
9 2 Failure to Cure A default shall become an event of default ("Event of Default") if
Lessee fails to cure the default withm thirty (30) days after the Crty provides Lessee wrth written
notice of default, which specifies the nature of the default
9 3 Crty's Remedies Upon Default Upon an Event of Default and Failure to Cure as
defined m 9 2, the Crty may termmate this Lease
9 4 Acts Constitutm� Default - CitX City shall be m default of this Lease on the
occurrence of any of the followmg
(a) Failure to comply with any law, regulation, policy, or order of any lawful
governmental authority,
(b) Failure to comply with any other provision of this Lease, or
(c) Failure to cure a default pursuant to Section 9 5 below,
9 5 Failure to Cure A default shall become an event of default ("City Event of
Default") if the City fails to cure the default withm thirty (30) days after the Lessee provides the
City with written notice of default, which specifies the nature of the default, provided, however,
if the default is of such a nature that it cannot be completely remedied withm the 30-day period,
this provision shall be complied with if the City begms correction of the default withm the 30-
day period and thereafter proceeds with reasonable diligence and m good faith to effect the
remedy as soon as practicable
9 6 Lessee's Remedies Upon Default Upon a City Event of Default and Failure to
Cure as defined m 9 5, Lessee shall have the right to termmate this Lease, seek specific
performance, andlor to seek any other remedies available at law or m equity
10. NOTICE. Any notices required or permitted under this Lease may be personally
delivered, delivered by facsimile machme, or mailed by certi�ed mail, return receipt requested, to
the following addresses or to such other places as the parties may direct in writmg from time to
time
The City City of Bremerton _
Finance D�rector
345 6�' Street, Suite 600
Bremerton, Washmgton 98337
Lessee• Mundy Jo Holdmgs, LLC
11711 SE 8th Street, Suite 303
Bellevue, Washmgton 98005
A notice shall be deemed given and delivered upon personal delivery, upon receipt of a
confirmation report if delivered by facsimile machme, or three (3) days after being mailed as set
forth above, whichever is applicable
Parkmg Lease Agreement
(Between Cery of Bremerton and Mundy Jo Holdings, LLC) 4
11. MISCELLANEOUS.
11 1 Authoritv Lessee and the person or persons executmg this Lease on behalf of
Lessee represent that Lessee is qualified to do business m the State of Washmgton, that Lessee
has full right and authority to enter mto this Lease, and that each and every person signmg on
behalf of Lessee is authorized to do so
11 2 Successors and Assi�ns This Lease shall be bindmg upon and mure to the benefit
of the parties, their successors and assigns
11 3 Entire A�reement This Lease, mcludmg the exhibits and addenda, if any,
contains the entire agreement of the parties All prior and contemporaneous agreements,
promises, representat�ons, and statements relatmg to this transaction or to the Property, if any, are
merged mto this Lease
114 Waiver The waiver by either party of any breach or default of any term,
covenant, or condition of this Lease shall not be deemed to be a waiver of such term, covenant,
or condition, of any subsequent breach or default of the same, or of any other term, covenant, or
condition of this Lease The City's acceptance of a rental payment shall not be construed to be a
waiver of any precedmg or existing breach other than the failure to pay the particular rental
payment that was accepted
11 5 Cumulative Remedies The rights and remedies of the parties under this Lease are
cumulative and m addition to all other rights and remedies afforded to the parties by law or
equity or otherwise
11 6 Time is of the Essence TIME IS OF THE ESSENCE as to each and every
provision of this Lease
11 7 Applicable Law and Venue This Lease shall be mterpreted and construed m
accordance with the laws of the State of Washmgton Any reference to a statute shall mean that
statute as presently enacted or hereafter amended or superseded Venue for any action arismg out
of or m connection with this Lease shall be m the Superior Court for Kitsap County, Washmgton
11 8 Modification Any modification of this Lease must be m writing and signed by
the parties Neither party shall be bound by any oral representations or statements
11 9 Survival of Covenants The covenants contamed herem survive the termination or
expiration of the Lease for the applicable statute of limitation periods
11 10 Duplicate Ori i�nals This Lease Agreement may be executed m duplicate
origmals
[Signatures on the followmg page]
Parkmg Lease Agreement
(Between C�ry of Bremerton and Mundy Jo Holdings LLC) $
THIS I.EASE AGdtEEMENT requires the signature of all parties and is executed as of the date
of the last signature below
CITY OF BREMER
.
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By Patty Le t
Its Mayorp
Date a �;
STATE OF WASHINGTON )
)§
�COUNTY OF KITSAP )
Mi7NDY JO HOLDINGS
By Michael Crowson
Its �ON.o �.�dL-�
Date ? �
I certify that I know or have satisfactory evidence that Patty Lent is the person who
appeared before me, and acknowledged that she signed this mstrument, on oath stated that she
was authorized to execute the mstrument, and acknowledged it as Mayor of the City of
Bremerton to be the free and voluntary act of such City for the uses and purposes mentioned m
the mstrument
uTi�
this�_ day
2012
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OF WAS���
STATE OF WASHINGTON )
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COUNTY OF KITSAP )
�FATAB��PUBLIC m �for he State of
Washmgton, residmg at
My commission expires 1 / \
I certify that I know or have satisfactory evidence that /1'� IGNA� G G��.Sr� is the
person who appeared before me, and acknowledged that (s)he signed this mstrument, on oath
stated that (s)he was authorized to execute the mstrument, and acknowledged it to be the free and
voluntary act for the uses and purposes mentioned m the mstrument
WITNESSETH my hand and seal this 7 day of AU �Gt 5 T , 2012
Notary Public
State of Washington NOTARY PUBLIC m and for the State of
STEVEN T PESCE Washington, residmg at Q�G��vG�
MY COMMISSION EXPIRES M commission ex ires /� /DI /la✓L
OCTOBER 01, 2012 Y P
Parkmg Lease Agreement
(Benveen Cery of Bremerton and Mundy Jo Holdings, LLC) O
Exhibit A
City Property Legal Description
BLK 19 LOTS 21 TO 24 AND E1/2 OF LOT 25; TOGETI-�ER WITH PORTION OF PARK
AVENUE AND ALLEY VACATED UNDER ORD. NOS. 598 & 779; TOGETHER WITH THAT
PORTION OF PARK AVENUE AND ALLEY CONVEYED UNDEIt AUDITOR'S FILE NO.
912166
Parkmg Lease Agreement
(Between Ciry of Bremerton and Mundy Jo Hold�ngs, LLC) ']
FOUR PAI�IQ 8TALL8
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PARKING GARAGE
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117115E 8TH Street T(925) 453A501
Suite 303 F (425) 453-8208
Bellewe, WA 98005 www Pnclrmo ars
304 PAFiK AVE.
BREMERTON, WA. 98337
PARKING STALL LOCATION
EXHIBIT B
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Exhibit C
Leasehold Value and Tax
Parking Lot 95 - 801 Fourth Street
1) Last 12 months revenue for all spaces
2) Divided by total number of parking spaces
= 12 months revenue per space
3) Times number of spaces leased
=leasehold value for 4 spaces of
4) Times current Leasehold Tax Rate
= Leasehold Tax Amount per year
$66,147 35
58
$1,14047
4
$4,561 88
12 84%
$585 75
Parkmg Lease Agreement
(Benveen City of Bremerton and Mundy Jo Holdings LLC)
9