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Home My WebLink About5200 �aUv AGENDA BILL 7 D CITY OF BREMERTON CITY COUNCIL SUBJECT: Second Amendment to the Study Session Date: 10/14/15 Gold Mountain Cart Pad Lease Agreement COUNCIL MEETING Date: 10/21/15 Department: Legal Presenter: Roger Lubovich Phone: (360)473-2335 SUMMARY: The City(Lessor)and Alexander Cart Rentals, Inc. (Lessee)entered into a lease for property at Gold Mountain Golf Club (Pad Lease) for Lessee's golf cart rental business. The parties . now desire to amend the lease to extend the term for an additional year through December 2016. ATTACHMENTS: 1) Cart Pad Second Amendment Lease Agreement 2) Exhibit A 3) Letter of Agreement 4) Cart Pad Lease 2013 FISCAL IMPACTS (Include Budgeted Amount): 2016 revenue of$13,200.00 to Gold Mountain Golf Course Fund. STUDY SESSION AGENDA: ❑ No Presentation � Full Presentation STUDY SESSION ACTION: o Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to approve Second Amendment to Cart Pad Lease Agreement and authorize the Mayor to finalize and execute the agreement with substantially the same terms and conditions as presented COUNCIL ACTION: [�Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 01/07/15 SECOND AMENDMENT TO LEASE AGREEMENT Cart Pad Lease THIS SECOND AMENDMENT, is effective on the date fully executed below by and between CIT�' OF�REIVIERTON, a municipal corporation, (hereinafter referred to as "Lessor"), and ALEXANDER CART R�NTALS, INC., a Washington corporation, (hereinafter referred to as "Lessee"). WHEREAS, the City is the owner of Gold Mountain Golf Club ("Golf Club"), which ownership includes the land upon which said cart pad is located,the buildings and other improvements which are a part thereof; and WHEREAS, Lessee has a private golf cart rental business; and WHEREAS, Lessor and Lessee entered into a certain Lease Agreement (hereinafter � "Lease") dated the 20th day of December 2012, covering premises identified as the cart pad which now consists of that area("Cart Pad") more particularly described in Exhibit A of this Second Amendment, attached hereto and incorporated by reference; and WHEREAS, Lessor and Lessee executed a Letter of Agreement on April 17, ZO15 ("First Amendment") extending the term of the lease for the leased premises allowing Lessee to remain at this location until the end of 2015 in consideration of Lessee's agreement to termination of the golf cart lease agreement with Columbia Hospitality; and , WHEREAS, Lessor and Lessee now desire to amend the Lease to extend the term of the lease to December 31, 2016; NOW, THEREFORE, Lessor and Lessee hereby agree as follows: 1. 1tECITALS. The recitals set forth above are hereby incorporated as if set forth herein in full. 2. TERM. Section 2 entitled"Term" is amended to extend the term of this lease for one(1) additional year commencing on January 1, 2016 and ending on December 31, 2016 ("Renewal Term"), unless otherwise extended or terminated. The term of this lease may be extended for an additional one (1) year term by the Mayor, with prior notice to the City Council, upon mutual agreement of the parties with substantially the same terms and conditions as set forth herein. 3. CONSIDERATION. During the Renewal Term, Section 3 entitled"Consideration" is • amended by repealing and replacing in its entirety Subsection 3(a) entitled "Rent"to read as follows: (a) Rent and Leasehold Tax. Lessee shall pay annual rent of Thirteen Thousand Two Hundred Dollars ($13,200.00) ("base rent payment"), which includes utilities as set forth in Section 6 or the Lease, for its use of the Cart Pad payable in monthly installments on the first of each month during the term of this lease. In addition to the Lease Payment, Lessee shall pay a leasehold excise tax, pursuant to RCW 82.29A.030, on all rent paid to the City, currently in the 1 Second Amendment to Gold Mountain Cart Pad Lease � � amount of 12.84 percent of the base rent payment and as may be adjusted pursuant to Ch. 82.29A RCW. Lessee shall pay the leasehold excise tax with the applicable rent payment. 4. ADDI'TIONAL TERMS AND CONDITIONS. Lessee agrees to additional terms and conditions to be added to the Lease effective on the effective date of this Second Amendment as follows: (a) Management of Lease. The management of this Lease relating to the day to day operations and use of the Cart Pad by Lessee will be by and through the Operator of the Golf Club as authorized and directed by Lessor. The contact for the Operator is: 1✓t� v l„��E;S ��-�! �� 12��Q"TLA��-SL��L�rIN� VX?U-�Y I�� Bremerton, WA �� g 3�Z (b) Cart Rental. Lessee will rent its carts to City on an as needed basis at $25 per day. (c) Cart Washing. Lessee will wash its carts in a different location (opposite of first tee-box Cascade). Lessee will locate the washing area away from the first tee box. (d) Tents. Lessee will power-wash the tent structures before the Renewal Term. (e) Fence. Before the Renewal Term, Lessee will install, at Lessee's expense, a six (6) foot wooden fence at top left grassed area at entrance corner and a long moveable wooden fence between the determined line area of the bottom pad (as identified on Exhibit A) to mostly visually block carts, etc. from the view line of parking lot. The wood material lends itself esthetically to compliment other natural structures on the property. The wood material and design of the fence is subject to approval of the Mayor prior to installation. 5. OTHER TERMS. All other terms of the Lease not specifically amended herein shall remain in full force and effect. 6. DLJPLICAT'E ORIGII�TALS. This document is executed in duplicate originals. IN WITNESS WHEREOF, This Second Amendment is entered into the date fully executed. LESSOR: LESSEE: CITY OF BREMERTON ALEXANDER CART R�NTALS, INC. � ��v""�.0►�.cX�'� PATT ENT, M yor SCOTT A E� ANDER, President Date: /� ?�/.� Date: � z zcll S R�\I.egal\I.egal\Files\Current Actrve Files\Gold Mountain�Agreements and Documents 201�\Cart Pad Lease-Second Amendment 2016- Final.doc 2 Second Amendment to Gold Mountain Cart Pad Lease , � , � . _ - .. , , , �+��; � �_� � " � � � �:.}s . . � ° � , ��a" ' � . - � . �=; � . , � �., . � � ;a � � � - � , � � -. � ,` ' \� : c ! `�-s �, , .'; � ''+r.._ ��\ � r ' 4 -� �� ` ti T � � ;_ �� :"; ' �� .`..., � ._ ; � � a ` � r, `_ � ` � �\ , � � r=�� .�� 4,� ;_ _ � �, � � t�'M'� j�� ;��t��. �� .-� +q `. . ��:ry��r�� i . i A, r� '•� ��'� -�,,►,�!'�n�e E� r�; " ' '� i' � �i"�4�•.��, ,-��n.� _ � � �/��i� �•� •, � �1�✓� � �� /�� ,� �� . // �/�//�j ��i� r %-� ��',:� . � ,.��' �/ 1� fi��!�,. � � i,"� i '� ,. ��`�I�r�*�'�I�'!�,,R�� '�,;:��-) � ,, , � � ;.� � �°��'�,�„/��L, � ei ��,.,��:;,.,,;'� . �.s��*��s1 �`� � ,'\'�,� �/��' '�t_ �`� .0 ��`. i�', �� i� ��.,� �,��s , ��.af , . r' � , ,.�.�'�� ,1 �� , ��/ /*4.>� '��,�ti � 4 '1 /� � � = � �f ' /� � . . � ��/``1,�C . r'i� _ .. . . \lk /. /,' / 4 ^�� i , , I � � � � �/ � ' � . ` . ;, � � � ( �.[ I_I I `,� ;; � - � . ; . ,�. . � �� `�� I ► � � Ik �� .�� , .��. ��I_`� '� � �� ; ��:�,:r ��- � � �� , , � ��.� �� . . , �: .- . , . . :;�, .f ;:�. �� .�`��;,%r �,y�� ,, C '" �°� . �� 1� �a �� THIRD AMENDMENT TO LEASE AGREEMENT Cart Pad Lease THIS THIRD AMENDMENT, is effective on the date fully executed below by and between CITY OF BREMERTON, a municipal corporation, (hereinafter referred to as "Lessor"), and ALEXANDER CART RENTALS, INC., a Washington corporation, (hereinafter referred to as "Lessee"). WHEREAS, the City is the owner of Gold Mountain Golf Club ("Golf Club"), which ownership includes the land upon which said cart pad is located, the buildings and other improvements which are a part thereof; and WHEREAS, Lessee has a private golf cart rental business; and WHEREAS, Lessor and Lessee entered into a certain Lease Agreement (hereinafter "Lease") dated the 20th day of December 2012, covering premises identified as the cart pad which now consists of that area("Cart Pad") more particularly described in Exhibit A of this Second Amendment, attached hereto and incorporated by reference; and WHEREAS, Lessor and Lessee executed a Letter of Agreement on April 17, 2015 ("First Amendment") extending the term of the lease for the leased premises allowing Lessee to remain at this location until the end of 2015 in consideration of Lessee's agreement to termination of the golf cart lease agreement with Columbia Hospitality; and WHEREAS, Lessor and Lessee executed a Second Amendment extending the term of the lease expiring December 31, 2016; and WHEREAS, Lessor and Lessee now desire to enter into a Third Amendment to extend the term of the lease to December 31, 2017; NOW, THEREFORE, Lessor and Lessee hereby agree as follows: 1. RECITALS. The recitals set forth above are hereby incorporated as if set forth herein in full. 2. TERM. Section 2 entitled "Term" is amended to extend the term of this Lease for one (1) additional year commencing on January l, 2017 and ending on December 31, 2017 ("Renewal Term"), unless otherwise extended or terminated. � 3. OTHER TERMS. All other terms of the Lease, as amended by the First Amendment and the Second Amendment, not specifically amended herein shall remain in full � force and effect. IN WITNESS WHEREOF, This Third Amendment is entered into the date fully � executed. 1 Third Amendment to Gold Mountain Cart Pad Lease LESSOR: LESSEE: CITX OF BREMERTOIV ALEXANDER CART RENTALS,INC. -� � �L c�,��-. �� PATTY L ,Ma or � SCOTT�EJ�:A�NDER,Pcesident Date: 3 �l� Date: $ O��/'�O R�[xgaN.egaf�fdes\Gtiurmt Active FlesiGold Mo�tam�Cart Pa�LpselCart Pad Leau-Thad Amendmeot 2016.doc 2 Thlyd Amendment t�o Gold Wlountaln Cart Pad Lease =�. � 1 ' ♦ � � �� l �'�� ,�� " � � ��der � � : . - � � �.� � �� . , � � . . - - - ,�a'- � '' �_' —� �� `�\- �—' ��- , � . � � � _ _ -�=� — — . , �„� - , _ . . �- -- '_ . _ —� - � , , � . `� , . . _ y . �, '1 ,�� _ci`-�;; , ��`.�'`' .� . - , _ - , ,�� , �� _ --� �� . �r-_. _ � ti� ,f � . ,,, � P� ��y�' `,�w - �� /`��• ` ` � �•�l� J�sY � �. �`,,• •�• '�• _ � '_ - �;.�� asi� �,, ��'_ ��• �,` � -,�.Y- k n � i - ��. _. ,. �.-•; `�``��/;'� .,,�;_.,� \ > w,;� ` _ � . r�..� _�/;� _"i' � - . _ �``F�.�:_ .�� -t`,f� • . . - �K� �1��. �:��.-� �t,,. • '` ,�,r'�,�.�� 4�f' ' .., - - � �- . _ �� , ,,,,, � �' � ;�,;�� s�� • /�� '' ,�� ' �rr�, ,��`�'��:�� "3� _� f � =�`' � � r '� \ '�� ' ��,��`\�_ � R� _ - ,4 ~`,�„ ,��'i �� Vl.,wfr��``�!\�\t�`,.`\�.�`- _ . .,. � _ , /' ` � ��',� .� ,`�'3 \\ ` , ` - , �� ` �4 e��` ��'��`�;;: r '��t -, � .,� � �� . � � :�•• � ,�, o./��_= . - i • �'" �'� ��J i��,. �v �� - .. • _� ` o 't • ��, 4r �,�+Ei.•-. • ��: .:-lt - � ,1, • �,_ `��.�� i�wt t � ,r, •y s,.�;�. ��;4�.,�,1`'/�� 3�✓`�w'� �.� , . .� �r;.�r � �� !- ��.,+� !'! ♦ _. . - �--- -- - . ,��\��f F��:��'• s.W- -- . , ! �w�"�� c' : • �� ti. �t�.-- C✓ .-r'�,t1 �;;��,~� . � . � ' . � % � �'�a . " '� ``�*;� ��r � � � ' 4 ` ��1�w�C;`� :��.:,� •�.t - - t =�` �` �. _ . ,_ ` '� - �t - �_. . _� � � - . r, ' ',� - . . , - � _ , , . . . f . � Contract Number. Vendor Sub�ect Department File Class Begin Date. End Date Review Date• Vault Date Comments 5200 ALEXANDER CART RENTALS, INC Lease Agreement - Gold Mountain Golf Carts Parks LEG 12-1 1/1/2013 12/31/2013 9/30/2013 2015 LEASE THIS LEASE is entered into on the date fully executed by and between THE CITY OF BREMERT'ON, a mumcipal corporation, (heremafter referred to as "City"), and ALEXANDER CART RENTALS, INC., a Washington corporation, (hereinafter referred to as "Lessee") WHEREAS, the City is the owner of Gold Mountain Golf Club ("Golf Club"), which ownership includes the land upon which said golf complex is located, the buildings and other improvements which are a part thereof, and WHEREAS, Lessee has a pnvate golf cart rental business and agrees to provide golf cart services to COLUMBIA HOSPITAI,ITY (the "Operator") of the Golf Club from this business at a reduced rate Lessee desires to lease land from the City at the Golf Club for the storage of golf carts associated with Lessee's business, and NOW, THEREFORE, for valuable consideration and by mutual consent of the parties, the pnor Lease Agreement between the parties is hereby termmated m its entirety and replaced with a new lease as follows 1. PREMISES. City does hereby lease to the Lessee the cart pad consishng of approximately 15,000 square feet of land ("Cart Pad") as set forth in Exhibit A, also referred to herein as ("Premises"), said exhibits attached hereto and incorporated by reference The Premises are located upon real property commonly known as the Gold Mountam Golf Club ("Golf Club") legally descnbed as Section 36, Township 24 N, Range 1 West, WM m ICitsap County, Washington 2. TERM. The term of this Lease shall be for one (1) year commencmg on January 1, 2013 (the "Commencement Date") and endmg on December 31, 2013 ("mrtial term") 3. CONSIDERATION. (a) Rent. As consideration for this lease, the Lessee agrees to rent carts to the Operator of the Golf Club at a substantially reduced rate Such reduced rate bemg beneficial to both the Operator of the Golf Club and the City, the rent for this Lease shall be One Dollar ($1 00) per year (b) 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 wntten consent of City, such occupancy shall be a tenancy from month-to-month at a rental in the amount of 100% of the Fair Market Value for rentmg the land and upon all the terms hereof applicable to a month-to- month tenancy 4. L,EASEHOI.D EXCISE TAX, OTHER TAXES AND ASSESSMENTS. In addrtion 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 of the base Gold Mountain — Cart Pad Lease Lease Payrnent and as may be ad�usted pursuant to Ch 82 29A RCW Lessee shall pay the leasehold excise tax with the applicable rent payrnent The leasehold excise tax will be determmed by the base lease payment Lessee paid for the Cart Pad m 2012 in the amount of $3444 00 ad�usted slightly to $3600 00 Payment of the leasehold excise tax shall be paid m quarterly payrnents begmmng on January 1, Apnl 1, July 1, and October 1 of 2013 Payment shall be due within fifteen (15) days of the begmning of each quarter Lessee shall also pay all taxes assessments, and all other governmental charges, of any kmd whatsoever, except as set forth m this lease, applicable or attnbutable to the Premises, Lessee's leasehold mterest, the improvements, or Lessee's use and en�oyment of the Premises Lessee shall pay these taxes and assessments when due or as otherwise requested by the City 5. USE OF PREMISES. (a) Cart Pad. The Lessee shall have the nght to use the Cart Pad for the storage, maintenance and operation of its pnvate golf cart rental busmess (b) City's Use of Cart Pad. By mutual agreement of the Director of Parks and Recreation, or his or her designee and Lessee, portions of the Golf Pad may be used by the City for use associated with the need for overflow parkmg for events at the Golf Club In no event shall the City be able to use the Golf Pad for overflow parking without at least 90 days notice to the Lessee (c) Compliance with Laws. Lessee shall not use the Premises or any part thereof for any illegal purpose Lessee shall not engage in any activity with respect to or on the Premises other than the express uses and purposed stipulated therein, without obtaimng pnor wntten consent from the City, which consent can be withheld for any reason Lessee agrees to conform to mumcipal, county, and state codes, statutes, ordinances, and regulations concerning the use and occupation of the Premises 6. UTILITIES. The City agrees to provide and pay all charges for electncity, water, sewer, gas/propane, garbage, telephone, and for all other public utilities used at the Premises The City shall not be responsible for failure of provision of these services unless said failure is due to nonpayment for services 7. 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 City, and all amprovements, alterataons, or changes so made, shall become a part of the leased Premases and shall belong to Ccty upon exparataon or sooner termanataon of thas Lease unless otherwase agreed to by the parties With respect to such alterations, improvements or changes to the Premises requested by Lessee, City's consent shall not be unreasonably withheld In the event City consents to the makmg 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 remam 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 2 Gold Mountain — Cart Pad Lease 8. MAINTENANCE AND REPAIRS. (a) The City's Repairs The City shall not be required to make any alterations, maintenance, replacements, or repairs in, on, or about the Property, or any part thereof, dunng the Term unless the premises suffers damage as a result of actions or maction by the City (b) Lessee's Repairs, Alteration, Maintenance and Replacement (i) Lessee shall, at its sole cost and expense, keep and maintam the Property and all improvements (regardless of ownership) in good order and repair, in a clean, attractive, and safe condrtion Crty and Lessee agree that the current condrtion of the premises is satisfactory (ii) All additions, repairs, alterations, replacements or changes to the Property and to any improvements on the Property shall be made in accordance with, and ownership shall be governed by, Section 7, above 9. 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 ansing out of any work performed, matenals furnished, or obligations incurred by Lessee 10. INDEMNIFICATION. Lessee shall indemmfy, defend and hold City harmless from all loss damage, liability or expense resulting from any in�ury to any person or any loss of or damage to any property caused by or resultmg from any act or omission of Lessee or any officer, agent, employee, guest, invitee or visitor of Lessee in or about the Premises, but the foregoing provision shall not be construed to make Lessee responsible for in�unes to third parties caused by the neghgence of Crty or any officer, agent, employee, guest, invrtee or visitor of Crty Crty 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 of any other person, or by any other cause, unless caused by the sole negligence of City or its officers, licensees, agents, employees, guests, invitees or visitors 11. LIABILITY INSURANCE; HAZARD INSURANCE. (a) Liability Insurance. Lessee, at its own expense, shall provide and keep in force with companies acceptable to City comprehensive general liability msurance in 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 Crty wrth a certificate of such policy wrthin thirty (30) days of the Commencement Date of this Lease and whenever required shall satisfy City that such policy is in full force and effect Such policy shall name City as an additional msured and shall be pnmary and noncontnbutmg with any msurance camed by Crty The policy shall further provide that rt shall not be canceled or altered without twenty (20) days pnor wntten notice to City (b) Hazard Insurance. Throughout the term of this Lease, City shall procure and mamtam fire, hazard and extended coverage insurance on the Premises Should the premises become umnhabitable due to loss or become umnhabitable for any other reason the City shall have the option of termmahng this lease 12. DAMAGE OR DESTRUCTION. In the event the Premises are damaged to such an extent as to render the same unusable m whole or in substanhal part, or are destroyed, Lessee 3 Gold Mountain — Cart Pad Lease shall give Crty or City's agent immediate wntten nohce thereof, and it shall be optional wrth Crty to repair or rebuild the same City shall have not more than thirty (30) days after date of such notification to notify Lessee in wnting of City's intention to repair or rebuild the Premises, or the part so damaged and, if City elects to repair or rebuild Premises, City shall prosecute the work of such repainng or rebuilding without unnecessary delay, and dunng such penod the rent of the Premises shall be abated in the same ratio that that portion of the Premises rendered for the time bemg unfit for occupancy shall bear to the whole of the Premises If City shall fail to give the notice aforesaid, Lessee shall have the nght to declare this Lease termmated by wntten notice served upon City or City's agent In the event that there is not sufficient insurance to pay for the repair or rebuildmg of any damaged structure, then the Crty, in rts sole discretion, may termmate this Lease Provided, however, pnor to termmating the Lease for this reason, the City shall discuss with the Lessee other ways to provide for the funding shortfall, but such will not prohibit the City from terminating the lease 13. P�RSONAL 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 matenal 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 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 dunng the term hereof upon all Lessee's improvements, equipment, furniture, fixtures, and other personal property located m the Premises 14. �NTItY BY CITY. At any and all reasonable times dunng regular busmess hours, upon one (1) day's pnor notice to Lessee, City reserves and shall have the nght to enter the Premises to inspect the same a reasonable number of times, to submit the Premises to prospective purchasers or Lessees, to repair the Premises without abatement of Rent, and may for the purpose erect scaffolding and other necessary structures where reasonably required by the character of the work to be performed, always providing that the entrance to the Premises shall not be blocked thereby and further providmg that the business of Lessee shall not be interfered with unreasonably Lessee hereby waives any claim for damages or for any m�ury or mconvemence to or mterference with Lessee's business or any loss of occupancy or quiet en�oyment of the Premises, and any other loss occasioned thereby, if City shall have taken every reasonable measure to avoid any such m�ury, inconvemence or mterference City shall have the nght to use any and all means which City may deem proper to open any doors or otherwise obtain access to the Premises in an emergency, without liability to Lessee except for any failure to exercise due care for Lessee's property, and any entry to the Premises obtained by City by any of said means or otherwise shall not under any circumstances be construed or deemed to be a forcible or unlawful entry mto or a detainer of the Premises or an eviction of Lessee from the Premises or any portion thereof 15. ASSIGNMENT AND SUBLETTING. Lessee shall not either voluntanly or by operation of law assign, transfer, mortgage, pledge hypothecate, or encumber this Lease or any interest therem and shall not sublet the Premises or any part thereof or any nght or pnvilege of Lessee 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 pnor wntten consent of City, which consent by Crty shall not be unreasonably wrthheld Any such assignment or sublethng without compliance with the terms of this paragraph shall be void and shall, at the 4 Gold Mountain — Cart Pad Lease option of City, 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�onty of the outstanding voting stock of Lessee shall constitute 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, subletting, occupation, or use by another person Consent to any such assignment or subletting shall m no way relieve Lessee of any liability under this Lease City may assign the Rent herem provided to any person, partnership, corporation, or bank, and Lessee agrees when notified m wnting by the assignee of such assignment to make the Rent payments to assignee under the terms of said assignment 16. LESSEE'S DEFAULT. In case of violation of this Lease by Lessee, the Crty shall notify Lessee m writing of such violation The Lessee shall cure any default that imposes an immediate threat to the public health, safety or welfare within 24 hours Any default in the payment of momes due under any provision of this Lease shall be cured withm 10 days All other violations shall be cured within thirty (30) days following the delivery of said notice, 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 within said tlurty (30) days and thereafter, diligently prosecutes such cure to completion In the event of the failure of the Lessee to remedy any default or violation of the covenants, agreements, or conditions herem contained within the penod of time specified in the notice, this Lease and ali nghts of Lessee hereunder shall be terminated and the City shall have the nght to enter upon the Premises and re-take possession thereof Continued violations for same or similar reasons may be grounds for immediate termmation if a subsequent violation occurs after the City gives notice that it mtends to terminate upon the further occurrence of similar violations 17. I2EMEDIES ON DEFAULT. (a) Termination and Re-entry. This Lease can be termmated for good cause Good cause shall mean any of the following, 1. failure to timely cure a default of this Lease after notice as provided in Sechon 16 above, 2. 3. termmation or expiration of this Lease between the City and the Lessee, lack of sufficient insurance proceeds to rebuild or repair the facility after damage or destruction, 5. insolvency of the Lessee, or the appointment of a receiver to admimster its financial affairs, or 6. any reason specified elsewhere in this Lease, or the attachments hereto, that is designated as grounds for termination (b) Termination for convenience. Either party can termmate this lease for convemence upon one hundred twenty (120) days notice to the other party Such notice shall be in wntmg and delivered to the address provided herein Upon the termmation of the Lease, the Lessee shall vacate the Premises, and the City may immediately reenter and take possession of the Premises without the necessity of a court order to do so 5 Gold Mountain — Cart Pad Lease (b) Costs of Recovery. Lessee agrees to pay City the cost of recovenng possession of the Premises, the expense of relettmg, and any other costs or damages ansing out of Lessee's default including, without limitation, the costs of removing persons and property from the Premises, the costs of repainng or altenng the Premises for reletting, brokers' commissions, and legal expenses and fees Notwithstandmg any termination, reentry, or relettmg, the liability of Lessee for the Rent and Additional Rent for the balance of the tertn of this Lease shall not be extinguished and Lessee shall pay and City 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 rental value of the Premises for the same penod Reasonable rental value shall mean the amount of rental which City does or could reasonably be expected to obtain as rent for the remammg balance of the Lease term (c) Removal of Personal Property. In the event of a retaking of possession of the Premises by City, Lessee shall remove all personal property located thereon and upon failure to do so upon demand of City, City may remove and store the same m any place selected by City, includmg but not limited 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 thirty (30) days or more, City 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 payrnent 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 City 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 City's lawfully reentenng and taking possession of the Premises or lawfully removmg and stonng the property of Lessee as herem provided and will save Crty harmless from loss ar damages occasioned by Crty thereby, whether such lawful reentry shall be considered or construed to be a forcible entry (d) Remedies Cumulative. The remedies hereinafter descnbed shall be cumulahve and City shall be entitled to pursue any other remedy now or hereafter available to City under the law or �udicial decisions of the State of Washmgton 18. HAZARDOUS SUBSTANCES. Except as disclosed on an annual basis to the City, Lessee shall not generate, release, spill, store, deposit, transport, or dispose of (collechvely "Release") any hazardous substances, sewage, petroleum products, hydrocarbons, radioachve substances, medicinal, bactenological, or disease-producing substances, hazardous matenals, 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 mdemmfy, defend and hold City harmless from any and all claims, liabilities, losses, damages, cleanup costs, response costs, and expenses (including reasonable attorneys' fees) ansmg 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 occumng at any time after the Commencement Date and ansmg 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 19. GENERAL PROVISIONS. City and Lessee agree to the following general provisions (a) Costs and Attorney Fees. If, by reason of any default or breach on the part of 0 Gold Mountain — Cart Pad Lease either party in the performance of any of the provisions of this Lease, a legal action is instituted, the losing party agrees to pay all reasonable costs and attorney fees in connection therewith It is agreed that the venue of any legal action brought under the terms of shall be m ICitsap County (b) Insolvency. In the event that the Lessee shall become msolvent or go mto bankruptcy, this Lease may be canceled at the option of the City without notice, and the City may take immediate possession of the Premises and the whole thereof and the same shall not become an asset m bankruptcy (c) Nondiscrimination. Lessee shall not discnminate m employment or services to the public on the basis of sex, race, color, creed, national ongm, age, sexual onentation, marital status, physical, mental or sensory handicap except an employment acrion based on a bona fide occupational qualification (d) Waiver. Failure to msist upon stnct compliance with any terms, covenants or condihons of this agreement shall not be deemed a waiver of such, nor shall any waiver or relinquishment of such nght or power at any time be taken to be a waiver of any other breach (e) Binding Effect. This Lease shall be bmding upon the heirs, successors, assigns and all other parties legally empowered with signatory nghts of any or all of the parties hereto (� 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 (g) Severability. Any provisions of this Lease which shall prove to be mvalid, void, or illegal shall m no way affect, impair, or invalidate any other provision hereof and such other provision shall remam in full force and effect (h) Previous Agreements Superseded. The terms and conditions of tlus Lease supersede the terms, obligations and conditions of any existing or pnor agreement between the parties regarding the sub�ect matter of this Lease (i) Entire Agreement. This Lease, includmg the exhibits and statutes referenced herein contain the entire agreement between the Parties and are the embodiment of all wntten or oral representations between the parties hereto (j) Amendments. This Lease may be amended at any time only by wntten agreement signed by the parties (k) Time. Time is of the essence of this Lease and each and all of its provisions in which performance is a factor (1) Recordation. Neither City nor Lessee shall record this Lease, but a short form memorandum hereof may be recorded at the request of City (m) 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 7 Gold Mountain — Cart Pad Lease 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, 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 (n) Execution. This Lease may be executed m several counterparts, each of which shall be deemed an onginal instrument (o) Notices. All nohces to be given hereunder shall be in wnting and shall be personally delivered and receipt acknowledged, sent by Umted States certified mail, return receipt requested, sent by facsimile, with onginal delivered withm three (3) days, or sent by overnight delivery through public or pnvate service, delivery charge prepaid, and addressed to the party at the respective mailing address as herein set forth To City Director of Parks and Recreation City of Bremerton 345 6`" Street, Suite 60 Bremerton, WA 98337 To Lessee Scott Alexander Alexander Cart Rentals, Inc 3410 Circle Way Bremerton, WA 98312 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 m the manner herem provided (p) Lessee's Corporate Authority. Lessee is a Washmgton Limrted Liabilrty Company, and each mdividual executmg this Lease on behalf of said LLC 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 wrth the bylaws of said corporation, and that this Lease is bmding 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 on the date set forth below CITY OF BREMERTON AL XANDER CART RENTALS, INC. �L C�SZ�� PATTY L , Mayor By SCOTT ALEXANDER Its ��5 . DATE �� G�r' '��Z DATE �'�� ?� � �Z (Notary Acknowledgment on Next Page) : Gold Mountain — Cart Pad Lease 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 mstrument, on oath stated that S he was authonzed 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 urposes mentioned in the mstrument DATED la - av - i a �/G�. �� ' �' V S '�c�`� ��v ��SION �.p�� '. 0 4 � O , K � y u °o PUBL�G : 1.9�.'? �81 ��/ NOTARY PUBLIC in and for the State of Waslungton, residing at��wt�r� W Q My commission expireso7ns/IS STATE OF W _'.."".r ) ss COUNTY OF KITSAP ) I certify that I know or have satisfactory evidence that Scott Alexander is the person who appeared before me, and said person acknowledged that he/she signed tlus instrument, on oath stated that he/she was authonzed to execute the mstrument, and acknowledged it as the of Scott Alexander's Golf Shop, Inc to be the free and voluntary act of such Corporation for the uses and purposes mentioned in the instrument DATED Z � z r �� r iiiiiii�� ' � � \ 1111 � Q` ` N S N E '��' O -P . ., .• `\ �••�� ARY � �. : � � : �' � \ � v ►•'� � � \ � G ' Z� � � PV6�-� � ti� `� . . �1►.� C7 . � � �'�.'••.. S 29 ; .� �� +q .......•P .� OF W �� iiii////J C i�`�G2u�--�� C/ � � , ¢�� NOTARY PUBLIC m and for the State of Washington, residing at 1��,,, . wi4 My commission expires s�,�� APPROVED AS TO FORM GER A BOVICH, City Attorney R\Legal\Legal\Files\Cucrent Actrve F�les\Gold Mountam\Columbia Hosprtality & other Agreements - 2012\CaR Pad Lease 2013 - Final doc 0 Gold Mountain — Cart Pad Lease EXHIBIT A 10 Gold Mountain — Cart Pad Lease