HomeMy WebLinkAbout8018 DocuSign Envelope ID:3343CEF4-8B05-4B84-8638-1263AFAD3E92
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
Sunny Jack Events, LLC_ (hereinafter"Lessee").
RECITALS
WHEREAS, the City now owns certain land legally described in Exhibit A; and
WHEREAS, it is the parties' desire to enter into a one (1) year lease; and
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 the real property described in Exhibit A, attached hereto and incorporated herein
by this reference, together with all the rights of the City, if any, to improvements
benefiting the property but subject to the exceptions and restrictions set forth in this
Lease (collectively the "Property" or "Leased Property").
1.2 Inspection. The City makes no representation regarding the condition of
the Property, or the improvements located on the Property. The mutual inspection of
this property is attached and incorporated as Exhibit B: Site configuration of this
agreement.
2. USE.
2.1 Permitted Use. Lessee shall use the Property as outlined in Exhibit A
Premise, Bremerton (the "Permitted Use") and for no other business or purpose,
without the prior written consent of the City. The Property shall not be used for illegal
purposes. It is agreed that this Lease shall not be construed as the City's waiver of
land use or building code provisions that would otherwise apply to any improvements or
uses of the site.
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.
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3. TERM.
3.1 Term Defined. The term of this Lease is one (1) years (the "Term"),
beginning on the Fifteenth (15th) day of March , 2024 (the "Commencement Date") and
ending on the 14th day of March 2025 (the "Termination Date"), unless terminated
sooner under the terms of this Lease
3.2 Right to Terminate Early. The City or Lessee may terminate the Lease,
for any reason with or without cause, without cost or penalties, at any time during the
Term upon giving 90 days prior written notice of termination.
3.3 End of Term. Upon the expiration or termination of the Lease, as
applicable, Lessee shall surrender the Property to the City in the same or better
condition as existed on the Commencement Date as evidenced in Exhibit B.,
reasonable wear and tear excepted.
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 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
Four hundred and thirty-one dollars and zero-cents($431.00), plus the leasehold tax of
12.84 percent (12.84%) as set forth in Section 4.3 for a total monthly payment of Four
Hundred Eighty-six dollars and thirty-four cents ($_486.34) ("Lease Payment"). 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 6th Street, Suite 100, Bremerton, Washington 98337.
4.3 Leasehold Excise Tax. Lessee agrees to pay the leasehold excise tax on
the Lease Payment pursuant to Chapter 82.29A RCW currently in the amount of 12.84
percent (12.84%) and as may be adjusted pursuant to Ch. 82.29A RCW. In addition,
Lessee agrees to pay when due, the leasehold excise tax, or any additional
assessments thereto, with respect to any payment or obligation hereunder, which is
deemed by the State of Washington to be taxable rent under said chapter and to
indemnify and hold the City harmless from the same.
Lessee shall pay the amount of the leasehold tax owing with the Lease Payment
to the City or as otherwise required by the State of Washington. Lessee may prepay
these quarterly payments on a semi-annual or annual basis or as otherwise approved
by the City.
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4.4 Proof of Payment. Lessee shall, if required by the City, furnish to the City
receipts or other appropriate evidence establishing the payment of any amounts
required to be paid under the terms of this Lease.
4.5 Late Charge. If any rental payment is not received by the City within ten
(10) days of the date due, Lessee shall pay to the City a late charge equal to four
percent (4%) of the amount of the Lease to defray the overhead expenses of the City
incident to the delay.
4.6 No Counterclaim, Setoff, or Abatement of Rent. Except as expressly set
forth elsewhere in this Lease, rent and all other sums payable by Lessee pursuant to
this Lease shall be paid without the requirement that the City provide prior notice or
demand, and shall not be subject to any counterclaim, setoff, deduction, defense or
abatement.
4.7 Annual Adjustments. Automatic adjustments to compensation shall be
limited to an annual basis effective on the anniversary of the Commencement Date of
the Lease. Payment shall be adjusted by 100% of the Consumer Price Index for All
Urban Consumers: CPI-U ("CPI") Seattle Tacoma Index (1984-87=100) as published by
the Bureau of Labor Statistics for the September for which statistics were posted prior
to the annual anniversary of the effective date of this Lease.
5. IMPROVEMENTS.
5.1 City Authorization and Consent. Prior to commencing any improvements,
the Lessee shall obtain the written consent of the City.
5.2 Construction. Prior to Lessee commencing any construction, alteration,
replacement, removal or major repair of any improvements, including utility
connections, Lessee shall submit to the City plans and specifications which describe
the proposed activity. Such improvements are inclusive of window coverings, awnings,
storefront window advertisements. Construction shall not commence until the City has
approved those plans and specifications in writing and Lessee has obtained a
performance and payment bond in an amount equal to 100% of the estimated cost of
construction. The performance and payment bond shall be maintained until the costs
of construction, including all laborers and material persons, have been paid in full.
Upon completion of construction, Lessee shall promptly provide the City with as-built
plans and specifications. The City's consent and approval shall not be required for any
routine maintenance or repair of improvements made by the Lessee pursuant to its
obligation to maintain the Property in good order and repair that does not result in the
construction, alteration, replacement, removal, or major repair of any improvements on
the Property. The provisions of this section do not obviate any permit requirements that
may apply to the proposed activity. As-builts shall be added to this Lease and
incorporated as Exhibit B: Site configuration.
5.3 Unauthorized Improvements. Improvements made on the Property
without the City's prior consent pursuant to Subsection 5.2 or which are not in
conformance with the plans submitted to and approved by the City ("Unauthorized
Improvements") shall immediately become the property of the City, unless the City
elects otherwise. Regardless of ownership of Unauthorized Improvements, the City
may, at its option, require Lessee to sever, remove, and dispose of them, charge
Lessee rent for the use of them, or both. If Lessee fails to remove an Unauthorized
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Improvement upon request, the City may remove it and charge Lessee for the cost of
removal and disposal.
5.4 Removal of Improvements. Lessee at is sole expense shall remove its
improvements and restore the Premises to grade and to its condition prior to this
Agreement and shall perform all obligations under this Agreement, including without
limitation the payment of Rent at the rate in effect upon the expiration or termination of
this Agreement. City may allow Lessee, by written agreement, to abandon its property
in place, but the City shall not be obligated to compensate Lessee for the abandoned
property or any value derived therefrom. If City does not allow abandonment and
lessee does not remove its property, Lessee must reimburse City for its reasonable
costs in having the property removed and the Premises restored.
5.5 Utility Connections. Connection to utilities shall require City's consent and
shall be Included in the monthly lease amount. Utilities include power and broadband
internet connectivity.
5.6 Notice required upon private property. Nothing in this Lease shall permit
the Lessee to unlawfully enter or construct improvements upon the property or
premises of another.
5.7 Parking. Parking for up to two (2) parking stalls in the red level (p3) of the
Kitsap Conference Center Harborside Garage is included via monthly permit.
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. In the event of such
consent, each permitted transferee shall assume all obligations under this Lease,
including the payment of rent. No assignment, sublet, or transfer shall release,
discharge, or otherwise affect the liability of Lessee.
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. INDEMNITY.
7.1 The City shall not be liable for any injury to any person or for any loss of
or damage to any property (including property of Lessee) occurring in or about the
leased Property or the buildings thereon and caused by or resulting from any act or
omission by Lessee any officer, agent, employee, guest, invitee, or visitor of Lessee;
and, during the full term hereof, Lessee agrees and covenants to indemnify, defend,
and hold harmless the City and those persons who were, now are, or shall be duly
elected or appointed officials or members or employees or agents thereof, against and
from any loss, damage, costs, charge, expense, liability, claim, demand, or judgments
of whatsoever kind or nature whether to persons or property, to the extent arising on
said Property, in or on said building(s), or on any areas adjoining the same, which is
under the control or use of Lessee pursuant to this Lease and arising out of or in
connection with Lessee's use and occupancy of said Property. City agrees and
covenants to indemnify, defend, and hold harmless the Lessee, its officers, employees,
and agents thereof, against and from any loss, damage, costs, charge, expense,
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liability, claim, demand, or judgment of whatsoever kind or nature whether to persons or
property, arising out of or in connection with the City's negligence in its performance
under this Lease.
7.2 Should a court of competent jurisdiction determine that this Lease is
subject to RCW 4.24.115, then, in the event of liability for damages arising out of bodily
injury to persons or damages to property caused by or resulting from the concurrent
negligence of Lessee and the City, its officers, officials, employees, and volunteers, the
Lessee's liability hereunder shall be only to the extent of the Lessee's negligence. IT IS
FURTHER SPECIFICALLY AND EXPRESSLY UNDERSTOOD THAT THE
INDEMNIFICATION PROVIDED HEREIN CONSTITUTES THE LESSEE'S WAIVER
OF IMMUNITY UNDER INDUSTRIAL INSURANCE, TITLE 51, RCW, SOLELY FOR
THE PURPOSES OF THIS INDEMNIFICATION. This waiver has been mutually
negotiated by the parties. The provisions of Section 10 shall survive the expiration or
termination of this Lease.
8. INSURANCE.
8.1 General Commercial Liability Insurance. Lessee agrees to procure and
maintain in force during the Term of this Lease and any extension thereof, at its
expense, general commercial general liability insurance. This insurance shall be
adequate to protect against liability for damage claims through public use of or from
accidents or other liability arising out of Lessee's use or occupancy of the Property and
buildings thereon. This insurance shall be in a minimum amount of $1,000,000
combined single limit per occurrence and $2,000,000 aggregate for bodily injury,
personal injury and property damage which may be covered under a blanket policy.
Lessee agrees that, if such insurance policies are not kept in force during the Term of
this Lease and any extension thereof, the City may procure the necessary insurance,
pay the premium therefor, and that such premium shall be repaid to the City on
demand. The City shall be named as an additional insured as to liability arising out of
the Property and buildings thereon and the insurance of Lessee shall be the primary
insurance as to said liability.
8.2 Certificate of Insurance. Lessee shall provide to the City documentary
evidence, certified by the insurer, of all insurance(s) required in this Lease.
8.3 Subrogation. The City shall not be liable to Lessee (by way of
subrogation or otherwise) or to any insurance company insuring the other party for any
loss or damage to any building, structure, or other tangible property, or any resulting
loss of income, or losses under worker's compensation laws and benefits, if any such
loss or damage is covered by insurance benefiting the party suffering such loss or
damage or was required to be covered by insurance pursuant to this Lease. Lessee
shall, upon obtaining the policies of insurance required give notice to the insurance
carrier or carriers that the foregoing mutual waiver of subrogation is contained in this
Lease.
9. MAINTENANCE AND REPAIR.
9.1 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, during the Term.
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9.2 Lessee's Repairs, Alteration, Maintenance and Replacement.
(a) Lessee shall, at its sole cost and expense, keep and maintain the
Property and all improvements (regardless of ownership) in good order and repair, in a
clean, attractive, and safe condition.
(b) Lessee shall, at its sole cost and expense, make any and all
additions, repairs, alterations, maintenance, replacements, or changes to the Property
or to any improvements on the Property which may be required by any public authority.
(c) 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 5, above.
10. DAMAGE OR DESTRUCTION.
10.1 In the event of any damage to or destruction of the Property or any
improvements, Lessee shall promptly give written notice to the City.
10.2 Unless this Lease is terminated, there shall be no abatement or reduction
in rent due to any damage or destruction of the Property.
11. DEFAULT AND REMEDIES.
11.1 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 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.
11.2 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
11.3 City's Remedies Upon Default. Upon an Event of Default, the City may
terminate this Lease and remove Lessee by summary proceedings or otherwise. The
City shall not be construed to have elected to terminate this Lease or cause a forfeiture
of rents or other charges to be paid during the balance of the Term, unless the City
gives a written notice of termination to Lessee or termination is decreed by legal
proceedings.
12. ACCESS. The City shall have the right to enter the Property at any reasonable
hour to inspect for compliance with the terms of this Lease upon 48 hours notice. Keys
will be issued to the tenant by the City. City door locks and hardware are to remain as
provided and duplication of keys is not permitted.
12.1 Emergency Removal or Relocation of Facilities. The City retains the right
and privilege to remove any facilities located within the public ways of the City and upon
City property, as the City may determine to be necessary, appropriate, or useful in
response to any public health need or safety emergency. The City shall not liable to the
Lessee or any other party for any direct, indirect or any other such damages suffered by
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any person or entity of any type as a direct or indirect result of the City's actions under
this section.
13. 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: Contracts Administrator
345 6th Street, Suite 100
Bremerton, Washington 98337
Lessee: Sunny Jack Events
5001 Ridgemont Dr. NE
Bremerton, WA 98311
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.
14. MISCELLANEOUS.
14.1 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.
14.2 Successors and Assigns. This Lease shall be binding upon and inure to
the benefit of the parties, their successors and assigns.
14.3 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.
14.4 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.
14.5 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.
14.6 Time is of the Essence. TIME IS OF THE ESSENCE as to each and
every provision of this Lease.
14.7 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.
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14.8 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.
14.9 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.
14.10 Survival of Covenants. The covenants contained herein survive the
termination or expiration of the Lease for the applicable statute of limitation periods.
14.11 Quiet Enjoyment. The City covenants and agrees that Lessee, upon
performing the terms and conditions of the Lease, may peacefully hold and enjoy the
Property during said term without any interruption by the City, its successors or assigns.
City will use its best efforts not to interfere with Lessee's business or right of access to
and from the Property during the Term of this Lease.
14.13 Recording of Short Form Lease. Neither the City nor Lessee may record
this Lease without the other's prior approval, but the parties will at any time at the
request of either party promptly execute duplicate originals of an instrument, in
recordable form, which will constitute a short form of this lease, setting forth a
description of the Property, the terms of this lease and other provisions hereof, except
the rental and other provisions as either party may request, which may be recorded.
14.14 Duplicate Originals. This Lease may be executed in duplicate originals.
14.15 Safety Requirements. The Lessee, in accordance with applicable
federal, state, and local safety requirements shall, at all times, employ ordinary care
and shall install and maintain and use commonly accepted methods and devices for
preventing failures and accidents which are likely to cause damage, injury or nuisance
to the public and/or workers. All structures and all lines, equipment and connections in,
over, under, and upon the streets, sidewalks, alleys, and public ways or places of a
Lease area wherever situated or located, shall at all times be kept and maintained in a
safe, suitable condition, and in good order and repair. The City reserves the general
right to see that the facilities of the Lessee is constructed and maintained in a safe
condition.
THIS LEASE requires the signature of all parties and is executed as of the date
of the last signature below.
Signatures on Next Page
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DS
117- 2/29/2024
APPROVE TO PROCESS (INITIAL/DATE)
Public Works Director/City Engineer
CITY OF BREMERTON Sunn Jack Events, LC
By: Cue L.g1., ; e-1e C y:
Its: - tat... r Its: 0
Date: 3 y 12 Date: _
APPROVED AS TO FORM: ATTEST:
adf\CRG\
Kylie . innell, ity Attorney Angelaoover, City Clerk
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Notaries on Next Page
STATE OF WASHINGTON )
) §
COUNTY OF KITSAP )
I certify that I know or have satisfactory evidence that Greg Wheeler is the
person who appeared before me, and acknowledged that he signed this instrument, on
oath stated that he was authorized to execute the instrument, and acknowledged it as
Mayor of the City of Bremerton to be the free and voluntary act of such City for the uses
and purposes mentioned in the instrument.
W TNESSETH my hand and seal this day of
fn` _, 2602.
NOTARY PUBLIC in and for the State of
Washington, residing at IcVj
��ee`�•`,`G��',oN Opp My commission expiresb� /�S /00 �
Q e s O8-2o i/, A�%
▪ !0 NOTARy N;
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WAS .�‘
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STATE OF WASHINGTON )
) §
COUNTY OF KITSAP )
I certify that I know or have satisfactory evidence that
is the person who appeared before me, and acknowledged that ( ) a signed this
instrument, on oath stated that (s)he was authorized to execute the\I strument, and
acknowledged it to be the free and voluntary act for the uses and purposes mentioned
in the instrument.
TNESSETH my hand and seal this I day of
, 20,4
• NOTARY PUBLIC in and for the State of
Washington, residing at
" r1ON
���a•',p68 4,4\ My commission expires / /dU
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EXHIBIT A: DESCRIPTION OF PREMISE
Legal description: 140 Washington Avenue, Bremerton,WA 98337
Parcel no. 242401-2-014-2009 Account id.
2425767
4241E
*****EXCEPT FOR BUILDING ONLY CONSTRUCTED ON BOARDWALK TO 242401-2-011-
2002*****PARCEL 1)»THAT PTN OF GOVT LOT 3 SEC 13 & LOT 1 SEC 24&TDLDS FRTG CNVYD BY VOL
326/249 DAF,ALL OF SD LOTS LY BTW BLK 2 TOWN OF BREMERTON &MEA LN EXC SLY 60FT&ALSO
TDLDS FRTG DAF, LY BTW NLY BDRY FRONT ST& NLY BDRY 2ND ST EXT IN CITY EXC SLY 60FT M/L INCL
14FT VAC ALLEY EXC 129FT STRIP TO E BJORK PER VOL 972/139;TOGETHER WITH THAT PORTION OF
VACATED 2ND STREET IN THE PLAT OF THE TOWN OF BREMERTON PER ORDINANCE 4847,AS
DESCRIBED UNDER AUDITOR'S FILE NO. 200303170013, RECORDS OF KITSAP COUNTY,WASHINGTON.**
BLDG VALUE CARRIED ON ACCT NO 242401-2-008-2007** PARCEL 2)»THAT PTN OF GOVT LOT 1&
TDLDS FRTG CNVYD BY VOL 449/114 DAF, BEG 545*20130E 14.18FT FR SE COR LOT 1 BLK 2 TOWN OF
BREMERTON TH N35*37110E
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Exhibit B:Site Configuration
16
27 J9 53.3
11
19 25
16 5
14
22 6
51
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33 Slab 173.4
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61 C61
43 14 42
51
31 11.3
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