Loading...
HomeMy WebLinkAbout5761AGENDA BILL CITY OF BREMERTON CITY COUNCIL UBJECT: Lease Agreement between ie City of Bremerton and Connection redit Union, Inc. Study Session Date: COUNCIL MEETING Date: Department: Presenter: Phone: October 25, 2017 November 1, 2017 Fire David Schmitt, Fire Chief (360) 473-5381 UMMARY: Connection Credit Union has established its presence in downtown Bremerton at Fire tation #1. The original Credit Union lease was established in 2011 and was renewed in 2012 with a year term, and again renewed in 2014 with a 3 year term. This lease agreement will continue with a year term and same conditions. The monthly rent was increased by 4%. XTACHMENTS: Lease agreement between the City of Bremerton and Connection Credit Union CAL IMPACTS (Include Budgeted Amount): This agreement will generate $4,864.33 of revenue Lease Hold Excise Tax. STUDY SESSION AGENDA: © Limited Presentation ❑ Full Presentation STUDY SESSION ACTION: © Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to authorize the Mayor to finalize and execute the Lease Agreement with Connection Credit Union, Inc. with substantially the same terms and conditions as presented. IL ACTION: [Approve Updated 01/07/15 ❑ Deny ❑ Table ❑ Continue ❑ No Action e LEASE This Lease Agreement is entered into this 1 day of November , 2017, between THE CITY OF BREMERTON, a municipal corporation (hereinafter referred to as "Lessor"), and CONNECTION CREDIT UNION, INC., a not for profit corporation (hereinafter referred to as "Lessee"). WHEREAS, Lessor and Lessee desire to enter into a -Lease Agreement on September 1, 2017 ("Lease"), for certain real property, building and improvements identified herein; and NOW, THEREFORE, for valuable consideration and by mutual consent of the parties, present this Lease as follows: 1. PREMISES. Lessor does, by these presence, owns a building and appurtenances ("Improvements") situated upon real property commonly known as the Bremerton Fire Station No. l located at 911 Park Avenue, Bremerton, Washington, and more particularly set forth in Exhibit "A" attached hereto and incorporated by reference (hereinafter collectively the "Premises"). The existing building consists of approximately 12,500 square feet of floor area. The proposed use to the existing 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 training room identified on Exhibit "'A." 2. TERM. This Lease shall commence on September 1, 2017 ("Commencement Date"), and shall end on August 31, 2020, unless otherwise extended or terminated. Either party may terminate this Lease at any time with sixty (60) days prior written notice. 3. ` CONSIDERATION. (a) Rent. In addition to other considerations of this Lease, Lessee agrees to pay Lessor, without notice or demand, the sum of Four Hundred Five and 36/100 dollars ($405.36) per month ("Rent") which is inclusive of utility costs, in advance, on or before the first day of the first full calendar month of the term hereof and a life sum on or before the first day of each and every successive calendar month thereafter during the term hereof. Effective September 1, 2018, and September 1, 2019, the Lease will be increased based upon 100% of the Seattle/Tacoma/Bremerton CPI -W. In addition Lessee is responsible for paying leasehold excise tax as set forth in Subsection (b) below. (b) Leasehold Excise Tax. In addition to the Rent, Lessee shall pay a leasehold excise tax, pursuant to RCW 82.29A.030, currently in the amount of 12.84 percent of the base Rent and as may be adjusted pursuant to Chapter 82.29A RCW. Lessee shall pay the Leasehold tax with the monthly payment. 1 Connection Credit Union (b) Overdue Rent. Unpaid installments of the monthly Rent or other sums due hereunder shall, if not timely paid, be subject to a late charge of Fifty and 00/100 dollars ($50.00) to cover the excess costs of administration and shall bear interest from the date due of 12 percent (12%) until all Rent and interest have been paid in 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 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 at a rate in the amount of 120 percent (120%) of the last monthly Rent, plus all other applicable 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 banking 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 parking lot of the property for its employees and members usage as identified on Exhibit "A." Lessee shall not use said Premises or any part thereof for any illegal purpose. Lessee agrees to conform to municipal, county, and state codes, statutes, ordinances, and regulations concerning the use and occupation of said Premises. Lessee shall maintain the Premises in substantial conformance with all applicable provisions of municipal, 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 in or upon the Premises. At the expiration of the Lease, Lessee shall: (i) Remove all trade fixtures and personal property from the Premises; (ii) Remove all fixtures, additions, alterations, modifications or other improvements installed in 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 making of improvements so removed; provided that Lessee shall not be required to so remove any improvements for which Lessor agreed in writing prior to the time said improvements were installed, that they would not need to be removed at the end of the term; and (iii) 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 pursuant to (b) of 2 Connection Credit Union this Paragraph 4, within fifteen (15) days after receipt of written notice from Lessor, Lessor may, at Lessee sole risk and expense, perforni such removal or restoration (by contract or otherwise) by the most expeditious 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 property 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 risk and expense of the Lessee. ACKNOWLEDGEMENT OF LESSEE REGARDING USE OF PREMISES: Lessee agrees and understands that the premises subject to this Lease is a public facility used for emergency response purposes. As such, the Lessee acknowledges that any and all disturbances, including 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 enjoyment of the premises. 5. UTILITIES. Lessor agrees to provide and pay all charges for heat, electricity, gas, water, sewer and for all other utilities which shall be used in the Premises during the full term of this Lease; provided, however, that Lessor shall not be responsible for failure of provision of these services if due to causes beyond its control and provided, 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. 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. 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 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. 3 Connection Credit Union (b) Lessor 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, 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 any 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. Lessee, at its own expense, shall provide and keep in force with companies acceptable to Lessor comprehensive general liability insurance in the amount of not less than One Million and 00/100 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 (3 0) 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 contain a waiver of subrogation against the City for claims arising out of any operations, liabilities and obligations to which coverage applies. The policy shall further provide that it: shall not be canceled or altered without twenty (20) days prior written notice to Lessor. 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 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 pay or cause to be M Connection Credit Union 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. 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 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. 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 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 in the maj ority of the outstanding voting stock of Lessee shall constitute an assignment for purposes of this paragraph. Lessor's 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. 13. LESSEE'S DEFAULT. The occurrence of any one or more of the 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 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 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; (d) Misrepresentation. Lessee makes or has made or furnishes or has furnished any warranty, representation or statement to Lessor in connection with this Lease, or any other agreement to which Lessee and Lessor are parties, which is or was false or misleading in any material respect when made or furnished; or Connection Credit Union (e) Insolvency. Lessee shall become insolvent or go into bankruptcy. 14. 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 without notice or demand in the exercise of a right or remedy which Lessor may have be reason of such default or breach, terminate this Lease by written notice to Lessee, reenter and take possession of the Premises without termination of this Lease, or pursue any remedy allowed by law. Lessee agrees to pay Lessor the cost of recovering possession of the Premises, the expense of reletting, and any other costs or damages arising out of Lessee's default including, without limitation, the costs of removing persons and property from the Premises, the costs of repairing or altering the Premises for reletting, brokers' commissions, and legal expenses and fees. Notwithstanding any termination, reentry, or reletting, the liability of Lessee for the Rent and additional 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 termination, reentry, or reletting, the excess, if any, of the amount of the Rent reserved in this Lease for the balance of the term hereof over the then reasonable lease 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 obtain as Rent for the remaining balance of the Lease term. In the event that Lessor relets the Premises or any part thereof without first terminating Lessee's right to possession pursuant to this Lease, Lessor reserves the right, at any time thereafter, to elect to terminate Lessee's right to possession to that portion of the Premises for the default that originally resulted in the reletting. (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 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 of the State of Washington. N Connection Credit Union 15. LESSOR'S DEFAULT. Lessor defaults if it 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 (3 0) 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 within said thirty (30) days and thereafter, diligently pursues 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. 16. 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. 17. GENERAL PROVISIONS. Lessor and Lessee agree to the following general provisions: (a) Waiver. No waiver of default by either parry 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. 7 Connection Credit Union (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. (f) Quiet Possession. Upon Lessee paying the Lease Payment 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 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. (1) Execution. This Lease may be executed in several counterparts, each of which shall be deemed an original instrument. M Connection Credit Union (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: Fire Chief City of Bremerton 911 Park Avenue Bremerton, WA 98337 To Lessee: fleey Connection Credit Union. P.O. Box 3990 Silverdale, WA 98383 It is understood that each parry may change the address to which notice may be sent by giving a written notice of such change to the other parry 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 CITY OF BREMERTON FX 44��Vl— By: Patty L 11-17-17 Its: Mayor V, LESSEE CONNECTION CREDIT UNION (Notary Acknowledgements on next page) 0 Connection Credit Union 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 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. DATED: 11-11 .11 Notary Public State of Washington Shannon L. Corin Commission Expires 11-17-2019 . NOTARY PUBLIC in an�for the State of Washington, residing at k. My commission expires 11111/4-1 STATE OF WASHINGTON ) ss. COUNTY OF KITSAP ) 9� I certify that I know or have satisfactory evidence that d is the person who appeared before me, and said person acknowledged that he/she signed this instrument,th stated that he/she was authorized to execute the instrument, and acknowledged it as the M of Connection Credit Union to be the free and voluntary act of such Corporation for the uses and purposes mentioned in the instrument. DATED: 1 1` 14/,WI-7 EVELYN B WEBB NOTARY PUBLIC STATE OF WASHINGTON COMMISSION EXPIRES FEBRUARY 9, 2021 N0'tXKY PU6LICfor t e State of Washington, residing My commission expire 2�Z-f' 10 Connection Credit Union CONNECTION CREDIT UNION September 27, 2019 Fire Chief City of Bremerton 911 Park Ave Bremerton, WA 98337 RE: Connection Credit Union Connection Credit Union will be closing our branch location at 911 Park Avenue. Our last day of business at that location will be November 1st, 2019. We will pay our rent through November 30th as required in our lease agreement. We have been very appreciative of our relationship with the City of Bremerton. Our closure decision is based on our need to focus more of our available resources on providing improved digital tools for our membership. We have invested in significant online and mobile banking upgrades Connection CU will continue to provide financial education support for city employees in any way we are needed and we also have no plans to discontinue sponsorship of the annual city employees picnic. I will follow up to coordinate an orderly removal of our equipment. We would also like to discuss the Fire station's need for our DVR system and safe as it would be more cost effective for us to not remove them. Thank you for allowing us to serve City of Bremerton employees from the Park Avenue location for 8 years. Sincerely ,, Scott Prior President/CEO Connection Credit Union scottp@connectioncu.org 360-307-6400 x6416 P.O. Box 3990 ♦ Silverdale, WA 98383 ♦ (360) 307-6400 ♦ fax (360) 307-6440 www.connectioncu.org w o W 1 0�7 I' �. I...7 7 If O1 R:\Legal\Legal\Contracts\FIRE\Lease-Connection Credit Union 2017 - FINAL 10.04.2017.doc 11 Connection Credit Union