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HomeMy WebLinkAbout5839AGENDA BILL CITY OF BREMERTON CITY COUNCIL 6B SUBJECT: Parking Lease Agreement with Study Session Date: N/A (Walk On) the Port of Bremerton for the Lease of 30 COUNCIL MEETING Date: June 6, 2018 Parking Spaces at the Washington Avenue Department: City Attorney/Finance Garage Presenter: Roger A. Lubovich and DeWayne Pitts Phone: (360) 473-2335 (360) 473-5296 SUMMARY: The Port of Bremerton has requested parking spaces during its upcoming construction on property located on Washington Avenue in downtown Bremerton. This Parking Lease Agreement provides for the lease of 30 parking spaces on the second floor in the Washington Avenue Garage for the period of October 1, 2018 through March 31, 2020, with an option for up to two additional six- month extensions. The lease payment is $150.00 per stall per month, plus leasehold excise tax of 12.84%. This agreement has been executed conditioned upon City Council approval. ATTACHMENTS: Parking Lease Agreement FISCAL IMPACTS (Include Budgeted Amount): Each parking stall generates monthly income of $169.26 (including leasehold excise tax). Annual income for the initial 18 -month term in 2018 is $15,233.40; for 2019 is $60,933.60; and for 2020 is $15,233.40 STUDY SESSION AGENDA: STUDY SESSION ACTION: RECOMMENDED MOTION: ® Item not presented at Study Session ❑ Consent Agenda © General Business ❑ Public Hearing Move to accept the Parking Lease Agreement with the Port of Bremerton; and authorize the Mayor to finalize the agreement with substantially the same terms and conditions as presented. COUNCIL ACTION: X Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 01/02/2018 PARKING LEASE AGREEMENT THIS LEASE AGREEMENT (hereinafter "Lease') is between the CITY OF BREMERTON, a municipal corporation of the State of Washington, with offices located at 345 6th Street, Suite 100, Bremerton, Washington 98337 (hereinafter "City"), and the PORT OF BREMERTON (hereinafter "Lessee"). RECITALS WHEREAS, the City owns certain property commonly known as the Washington Avenue Garage located on Washington Avenue between 4 and 5'h Street in Bremerton; and WHEREAS, it is the parties' desire to enter into a lease for parking spaces in the Washington Avenue Garage for use by occupants of the property owned by Lessee during upcoming construction on its property located at 210!280/298 Washington Avenue in Bremerton; NOW, THEREFORE, the City and Lessee agree as follows: AGREEMENT 1. PROPERTY. 1.1 EMP ei Dem. The City leases to Lessee and Lessee leases from the City Parking spaces in the Washington Avenue Garage (hereinafter "Parking Garage"), said Parking Garage legally described as follows: LOTS 18 TO 25, BLOCK 6, BREMERTON, AS RECORDED 1N VOLUME 2 OF PLATS, PAGE 30, RECORDS OF KITSAP COUNTY, WASHINGTON. The parking spaces leased include thirty (30) full time parking spaces located on level two (P2) Of the Parking Garage ("Parking Spaces'). The specific location of the Parking Spaces may be changed as mutually agreed between the parties. 2. USE. 2.1 Permitted Use. Lessee shall use parking spaces exclusively for the use by Lessee and/or occupants authorized by Lessee who are currently using the property owned by Lessee to be developed as Marina Square. The Property shall not be used for illegal purposes. 2.2 Conformance with LLessee shall, at all times, keep current and comply with all conditions and terms of any permits, licenses, certificates, regulations, ordinances, statutes, and other government rules and regulations regarding its use or occupancy of the Property. 2.3 Liens and Encumbrances. Lessee shall keep the Property free and clear of any liens and encumbrances arising out of or relating to its use or occupancy of the Property. 2.4 Parking Enforcement. Parking enforcement will be performed by the City as deemed appropriate. Parking Lease Agreement - Mariina Square 3. SECTION INTENTIONALLY OMITTED. 4. TERM. 4.1 Term Defined. The term of this Lease is eighteen (18) months (the "Term"), beginning on October 1, 2018 and ending on March 31, 2020 (the "Termination Date"), unless terminated sooner under the terms of this Lease. Lessee may terminate the lease during the Term by providing the other party thirty (30) days prior written notice of termination. 4.2 Option to Extend. Lessee shall have the option to extend the Term of this lease for up to two (2) additional six (6) month terms upon delivering written notice to the City sixty (60) days prior to the expiration of the term except that, during the additional six (6) month term extensions, either party may terminate the lease for convenience by providing the other party thirty (30) days prior written notice of termination. 4.3 End of Term. Upon the expiration or termination of the Term, as applicable, Lessee shall surrender the Property to the City as existed on the Commencement Date. 4.4 Hold Over. If Lessee remains in possession of the Property after the Termination Date, the occupancy shall not constitute an extension or renewal of the Term. The occupancy shall be a month-to-month tenancy, on terms identical to the terns of this Lease, which may be terminated by either party on thirty (30) days written notice. The monthly rent during the holdover shall be the same rent which would be due if the Lease were still in effect and all adjustments in rent were made in accordance with its terms. If the City provides a notice to vacate the Property in anticipation of the termination of this Lease or at any time after the Termination Date and Lessee fails to do so within the time set forth in the notice, then Lessee shall be a trespasser and shall owe the City all amounts due under applicable law. 5. LEASE PAYMENT. 5.1 Monthly Payment. Lessee shall pay to the City a monthly payment of $4,500.00 plus a leasehold excise tax as set forth in Subsection 5.3 below. The first installment shall be due and payable on or before the Commencement Date, and subsequent installments shall be due and payable on or before the same day of each month thereafter. 5.2 Paymgnx Place. Payment is to be made to the City of Bremerton, Attn: Financial Services, 345 a Street, Suite 100, Bremerton, Washington 98337. 5.3 Lmehold Excise Tax Other Taxes and Assessments. In addition to the Lease Payment, Lessee shall pay a leasehold excise tax, pursuant to RCW 82.29A.030, on all Lease Payment amounts paid to the City, currently in the amount of 12.84 percent and as may be adjusted pursuant to Ch. 82.29A RCW, on the monthly Lease Payment. Lessee shall pay the Leasehold tax with the applicable lease payment. Lessee shall also pay all taxes assessments, and all other governmental charges, of any kind whatsoever, applicable or attributable to the Premises, Lessee's leasehold interest, the improvements, or Lessee's use and enjoyment of the Premises. Lessee shall pay these taxes and assessments when due or as otherwise requested by the City. 5.4 Sigoge and Related Costs. Lessee agrees to reimburse the City for new signage for the Parking Spaces and for relocation and re -striping of two handicap spaces located within the Parking Spaces in an amount mutually agreed upon by the parties. Parking Lease Agreement - Marina Square 6. LATE PAYMENTS AND OTHER CHARGES. 6.1 Late C e. If any rental payment is not received by the City within (10) days of the date due, Lessee shall pay to the City a late charge equal to one percent (10/6) per month of the amount of the lease until the delinquency is paid. 7. ASSIGNMENT AND SUBLETTING. 7.1 City Consent Requi end. 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 Ea=.e=o Assignment. The acceptance by the City of the payment of rent following an assignment or other transfer shall not constitute consent to any assignment or transfer. S. INDEMNIFICATION. 8.1 Each party shall indemnify, defend, and hold the other party harmless for its acts, omissions or negligence relating to its performance of this Lease Agreement. 9. DAMAGE OR DESTRUCTION. 9.1 In the event of any damage to or destruction of the Property or any improvements, Lessee shall promptly give written novice to the City. Lessee acknowledges that use of the Parking Spaces are at Lessee's risk and that any damage to vehicles occurring while in the Parking Garage is at Lessee's, or Lessee's authorized occupants of the Parking Spaces, own risk. The City shall not be liable for any damage to vehicles or other property while using the Parking Spaces unless caused directly by the City. 10. DEFAULT AND REMEDIES. 10.1 Acts Constituting Wt. Lessee shall be in default of this Lease on the occurrence of any of the following: (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 11.2 below; or (e) Proceedings are commenced by or against Lessee under any bankruptcy act or for the appointment of a trustee or receiver of Lessees' property. 10.2 Failure to Cure. A default shall become an event of default ("Event of Default") if Lessee fails to cure the default within thirty (30) days after the City provides Lessee with written notice of default, which specifies the nature of the default. 10.3 +'s Remedies Upon gfault. Upon an Event of Default and Failure to Cure as defined in 10.2, the City may terminate this Lease. 11. NOTICE. Any notices required or permitted under this Lease may be personally delivered, delivered by facsimile machine, or mailed by certified mail, return receipt requested, to Parking Lease Agreement - Marina Square the following addresses or to such other places as the parties may direct in writing from time to time: The City: City of Bremerton Attn: 345 61h Street, Suite 600 Bremerton, Washington 98337 Lessee: Port of Bremerton Attn: Jim Rothlin 8850 SW State Highway 3 Bremerton, Washington 98312 A notice shall be deemed given and delivered upon personal delivery, upon receipt of a confirmation report if delivered by facsimile machine, or three (3) days after being mailed as set forth above, whichever is applicable. 12. SECTION INTENTIONALLY OMITTED. 13. MISCELLANEOUS. 13.1 Authori . Lessee and the person or persons executing this Lease on behalf of Lessee represent that Lessee is qualified to do business in the State of Washington, that Lessee has full right and authority to enter into this Lease, and that each and every person signing on behalf of Lessee is authorized to do so. 13.2 Successors �d Assigns This Lease shall be binding upon and inure to the benefit of the parties, their successors and assigns. 13.3 Entire Agrgemej t. This Lease, including the exhibits and addenda, if any, contains the entire agreement of the parties. All prior and contemporaneous agreements, promises, representations, and statements relating to this transaction or to the Property, if any, are merged into this Lease. 13.4 Waiv r. The waiver by the City 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 preceding or existing breach other than the failure to pay the particular rental payment that was accepted. 13.5 Cumulative Remedies. The rights and remedies of the City under this Lease are cumulative and in addition to all other rights and remedies afforded to the City by law or equity or otherwise. 13.6 Time is of the Essence. TIME IS OF THE ESSENCE as to each and every provision of this Lease. 13.7 Invalidi if any provision of this Lease shall prove to be invalid, void, or illegal, it shall in no way affect, impair, or invalidate any other provision of this Lease. 4 Parking Lease Agreement - Marina Square 13.8 A,Rplicable Law and Venue. This Lease shall be interpreted and construed in accordance with the laws of the State of Washington. Any reference to a statute shall mean that statute as presently enacted or hereafter amended or superseded. Venue for any action arising out of or in connection with this Lease shall be in the Superior Court for Kitsap County, Washington. 13.9 Modification. Any modification of this Lease must be in writing and signed by the parties. The City shall not be bound by any oral representations or statements. 13.10 Survival of Covenants. The covenants contained herein survive the termination or expiration of the Lease for the applicable statute of limitation periods. 13.11 Recording of Lease. Neither the City nor Lessee may record this Lease without the other's prior approval 13.12. Duplicate Originals. This Lease Agreement may be executed in duplicate originals. THIS AGREEMENT is executed as of the date of the last signature below. ev-ev—f -}\t5 weewteta isL,&Joec+ -6 ,1Vy u.fd,A 6 ctPP'►vat. ;TY OF BREMERTON PORT OF BREMERTON B.I —Wheeler im Rothlin Its: Mayor ts: Chief Executive Officer Date - S _._.� Date: ' Z- R-legallogahFilesTurrent Active FilesiMarina S411ANTarking Lease Agreement - Marina square - Final.doc S Parking Lease Agreemej,i!t Marina Square