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HomeMy WebLinkAbout5932PARKING 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 4th and 5th Street in Bremerton; and WHEREAS, the parties' entered into a lease on May 25, 2018 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 405 Washington Avenue in Bremerton; and WHEREAS, the parties desire to enter into a new lease, replacing the prior lease entered into by the parties on May 25, 2018, to change the term dates of the lease and to make other related changes; NOW, THEREFORE, the City and Lessee agree as follows: AGREEMENT 1. PROPERTY. 1.1 Property Defined. 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 IN 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 Laws. Lessee 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. Parking Lease Agreement- Marina Square 2.4 Parking Enforcement. Parking enforcement will be performed by the City as deemed appropriate. 3. TERM. 3.1 Term Defined. The term of this Lease is eighteen (18) months (the "Term") as follows: a) The lease will begin on a date to be established by Lessee between March 1, 2019 and June 1, 2019 upon providing the Lessor fourteen(14) days prior written notice. b) The lease will expire on a date to be established between August 31, 2020 and November 30, 2020 (the "Expiration" date) based on the 18 month period from the established beginning 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. 3.2 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. 3.3 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. 3.4 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 terms 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. 4. LEASE PAYMENT. 4.1 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. 4.2 Payment Place. Payment is to be made to the City of Bremerton, Attn: Financial Services, 345 6`h Street, Suite 100, Bremerton, Washington 98337. 4.3 Leasehold 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 Parking Lease Agreement- Marina Square Premises. Lessee shall pay these taxes and assessments when due or as otherwise requested by the City. 4.4 Signage 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. 5. LATE PAYMENTS AND OTHER CHARGES. 5.1 Late Charge. 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 (1%) per month of the amount of the lease until the delinquency is paid. 6. ASSIGNMENT AND SUBLETTING. 6.1 City Consent Required. 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. 6.2 Rent Payments Following 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. 7. INDEMNIFICATION. 7.1 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. 8. DAMAGE OR DESTRUCTION. 8.1 In the event of any damage to or destruction of the Property or any improvements, Lessee shall promptly give written notice 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. 9. DEFAULT AND REMEDIES. 9.1 Acts Constituting Default. 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 9.2 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. 9.2 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. 3 Parking Lease Agreement- Marina Square 9.3 City's Remedies Upon Default. Upon an Event of Default and Failure to Cure as defined in 9.2, the City may terminate this Lease. 10. 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 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: DeWayne Pitts 345 6`h Street, Suite 100 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. 11. MISCELLANEOUS. 11.1 Authority. 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. 11.2 Successors and Assigns. This Lease shall be binding upon and inure to the benefit of the parties,their successors and assigns. 11.3 Entire Agreement. 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. This lease replaces in its entirety the lease executed between the parties May 25, 2018. 11.4 Waiver. 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. 11.5 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. 4 Parking Lease Agreement- Marina Square 11.6 Time is of the Essence. TIME IS OF THE ESSENCE as to each and every provision of this Lease. 11.7 Invalidity. 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. 11.8 Applicable 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. 11.9 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. 11.10 Survival of Covenants. The covenants contained herein survive the termination or expiration of the Lease for the applicable statute of limitation periods. 11.11 Recording of Lease. Neither the City nor Lessee may record this Lease without the othersPPriorapprovalP 11.12. Duplicate Originals. This Lease Agreement may be executed in duplicate originals. THIS AGREEMENT is executed as of the date of the last signature below. CITY OF BREMERTON PORT OF BREMERTON By: I Wheeler Jim Rothlin Its: Mayor 6 Its: Chief Executive Officer Date: 2- Z1 120 t Date: Z/ 2'61/4 R:\Legal\Legal\Files\Current Active Files\Marina Square\Parking Lease Agreement-Marina Square-Final 10-01-18.doc 5 Parking Lease Agreement- Marina Square 8850 SW STATE HWY 3 BREMERTON WA 98312 portofbremerton.org Tel (360) 674-2381 Fax (360) 674-2807 Commissioners Cary Bozeman Axel Strakeljahn Gary Anderson Chief Executive Officer Jim Rothlin Bremerton National Airport 360) 674-2381 Olympic View Business & Industrial Park 360-) 674-2381 Port Orchard Marina 360) 876-5535 Bremerton Mariana 360) 373-1035 May 29, 2020 Greg Wheeler, Mayor City of Bremerton 345 6th Street, Suite 600 Bremerton, WA 98337 RE: Request for Six-Month Extension of Existing Parking Agreement Dear Mayor Wheeler, Thank you for considering this letter. The Port of Bremerton appreciates the cooperative agreement with the City of Bremerton for temporary marina parking during construction of the Marina Square Project. The agreement has been beneficial for Bremerton citizens, the marina tenants, and the Port of Bremerton. This correspondence is intended to serve as formal request for a six-month extension of said contract terms, per Section 4.2 of the existing agreement. The Port of Bremerton looks forward to the successful construction of the Marina Square project as a beneficial addition to the City of Bremerton and to the local waterfront, bringing much needed housing, hotels, and commerce to the area. The approval of this extension assists in moving toward that mutual goal. Please don’t hesitate to contact me if there are any questions or additional needed documentation. I hope this is helpful and thank you again. Sincerely, Jim Rothlin Chief Executive Officer Attachment: Executed Parking Lease Agreement-Marina Square, signed 5-25-18 8850 SW STATE HWY 3 BREMERTON WA 98312 portofbremerton.org Tel (360) 674-2381 Fax (360) 674-2807 Commissioners Cary Bozeman Axel Strakeljahn Gary Anderson Chief Executive Officer Jim Rothlin Bremerton National Airport 360) 674-2381 Olympic View Business & Industrial Park 360-) 674-2381 Port Orchard Marina 360) 876-5535 Bremerton Marina 360) 373-1035 February 25, 2021 Greg Wheeler, Mayor City of Bremerton 345 6th Street, Suite 600 Bremerton, WA 98337 RE: Request for Six-Month Extension of Existing Parking Agreement Dear Mayor Wheeler, Thank you for considering this letter. The Port of Bremerton appreciates the cooperative agreement with the City of Bremerton for temporary marina parking during construction of the Marina Square Project. The agreement has been beneficial for Bremerton citizens, the marina tenants, and the Port of Bremerton. This correspondence is intended to serve as formal request for another six-month extension of said contract terms, per Section 3.2 of the existing agreement. The Port of Bremerton looks forward to the successful construction of the Marina Square project as a beneficial addition to the City of Bremerton and to the local waterfront, bringing much needed housing, hotels, and commerce to the area. The approval of this extension assists in moving toward that mutual goal. Please do not hesitate to contact me if there are any questions or additional needed documentation. I hope this is helpful and thank you again. Sincerely, Jim Rothlin Chief Executive Officer Attachment: Executed Parking Lease Agreement-Marina Square, signed 02-27-2019