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2820
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KITSAP SQUARE DANCE ASSOCIATION
6800 OLD BELFAIR HIGHWAY (WATERWORKS TRACT #2)
ADMIN SVCS
LAN
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Insurance
Type Amount
Amount
Begin Date
End Date
Review Date
04/01/1974 .-
08/27/2003
02/15/2005
T
=f
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Insurance Total
Insurance Review Date
$0.00 --
11/01/2002 T
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= =
Comments
VENDOR PAYS LEASEHOLD TAX PROPERTY SOLD TO ASSOC 8/03
VAULT 01/01/2005
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~ Contract Number 2820
.,.
,I,
Insurance
Type Amount
Amount
Begin Date
End Date
Review Date
t
+
+
+
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04/01/1974 +
08/27/2003 '
02/15/2005
: :Vendor Name
"Subj ect
, 'Department
',Status Code
KITSAP SQUARE DANCE ASSOCIATION
6800 OLD BELFAIR HIGHWAY (WATERWORKS TRACT #2)
ADMIN SVCS
LAN
Insurance Total
Insurance Review Date
+
$0.00 ,',
11/01/2002
Comments
VENDOR PAYS LEASEHOLD TAX
VAULT 01/01/2005
PROPERTY SOLD TO ASSOC 8/03
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LAND LEASE AGREEMENT
TNIg AGRI~-F. MENT is made this ~ day of~, 2000 by and between
the CITY OF B~EMERTON, a municipal corporation, [m Lessor (herein referred to as "City"),
and KITSAP SQUARE DANCE ASSOCIATION, a Washington non-profit corporation,
(hereim~er referred to as "Lemee").
WITNESSETH:
1. Pr~i~. The Ciw is the legal owner of the following de~rihed real property situated in
the County of Kit~mp, State of Wuhington to-wit:
Lots 36, 37 and 38 in the Plat ofBremerton Wate~vorks Tract No. 2,
Section 32, T24N, RIE, W.M., ALSO that portion of the SW % SW IA
NW % of Section 32, T24N, R1E, W.M., lyin8 west of the Plat of
Brem~tou Waterworks Trot No. 2; South of the Old Belfak Highway an~'
East of Parrish Creek; EXCEPT that portion desca'ihed as follows:
BEGINNING at the SW corner of Lot 39 of said Plat; thence N 88°16'45"
W 134.57 fi.; thence N 11°$3'00" E 142.21; thence S88°16'45" E 111.49
fi.; thence S 2°32'40" W 140 fi. to P.O.B.; ALSO that portion of the NW
IA NW IA SW lA Section 32, T24N, R1E, W.M. lying West of the Plat of
Brem~rton Waterworks Tract No. 2, East of Parrish Creek and within 800'
South of the Old Belfair Highway.
The City hereby leases to the Lessee, and the Lessee hereby leases from the City the above-
described rea] property (herei_~er "Premises") for the uses and purposes described herein below.
The Les~e is the legal owner of Idl of the improvements on the above described real property,
including but not limited to the building, picnic shelter, outdoor lighting and RV hookup
eamp~round facilities. Said improvements are not lem~xi and are not part of the Premises. Said
improvements sluiil hercinafier he referred to as "Improvements".
2. U~ of Pr~mi~es. Lessee shall have the use and occupancy of the Premises for the
purpose of conducting the activities of the Kitsap Square Dance Association in accordance with
their Bylaws and applicable State laws, City ordinances, rules and regulations, including dancing,
lessons, meetings, the provision of recreational vehicle (RV) sites for use by association members,
and camping conducted in accordance with the "Campout Rules" attached hereto as Exhibit "A"
and incorporated by this reference, subject to use and occupancy by the City pursuant to Section
(5.
3. Term. Commencing ~.~ Z ,,~D~D the property is rented to the
Lessee for three (3) years as long as Lessee ~bides by ail terms and conditions set forth herein.
KSDA Lea~e - Page 1
lanuary 5, 2000
4. R~t. Annmd rmt shall be Four Thoussnd One Hu~r~ Fi~ ~ No/l~ Doll.s
(~, 150,~) f~ ~ u~ of ~ ~ ~ u~n ~r ~k~ r~t for t~ l~d (exclu~ve of the
build~gs, ~~s ~ RV h~k-ups) le~ t~ v~ue of ~ntfi~fions for improvem~ts,
repot ~ ~t~ oft~ ~ ~ t~ ~t ofT~ Thou~d ~ Hundr~ ~d No/l~
Doll.s ($3,3~.~) (~ ~ Fo~la - E~bit "B") ~8 to Ei~t Hundr~ Fi~ ~d
No/l~ ~s (~50.~) ~U~ ~ r~t, ~ paints ~1 ~ ~e queerly.
5. RV Sit~ ~nu~ ~ Revenue ~ Ex~ Su~ of RV Site operations cont~ned
in E~t "C" ~ ~ o~ti~ 1o~ for 1~3 t~ 1~8. The Ci~ a~s to
excl~e ~s r~ ~ in rmt~ r~te ~ions ~ 1o~ ~ the RV o~rations ge~rate
~ l~s. RV ~te r~ues ~11 ~ r~ ~fore re~w~ of ~s 1~.
6. U~ of P~m~ by th~ Ci~. ~ Ci~ ofBr~ ~y de,re to u~ t~ Pre~s ~d
~l~g f~ Ci~ ~n~ ~tions. ~1 r~sts for u~ ~l ~ ~r~t~ ~th KSDA
repr~n~tiv~. T~ Ci~ ~ l~ve t~ ~e~s ~d ~ildi~ in the ~e ~n~fion of r~r
cl~ ~ it w~ prior to u~ by the Ciw.
7. C~. ~s~ ~y, at its opfio~ pro.de by ~ntra~ for a ~11 ti~, on-~te
~, ~o~ t~ no tach contr~t s~l biM the City or cr~te ~y emplo~ent
relat~p ~ the ~ ~d the City,
· ~ U~ ~t~ Sq~e D~ ~fion s~l not ~t ~y ~n to
~ ~i in ~ iM~r ~ties. S~ is ~ ~ d~t~ ~s o~y ~th
pro~ r~l~ pro~d~ for ~s~. No fires s~ ~ built ex.pt in the ~ pro~d~ for
t~t pu~.
9. ~m~ or ~tmetion. In the ~ent ~ pre~s, ex~usive of buildings or
app~e~ ~ ~g~ by ~e, ~e, ~ ofwg, or oth~ e~raordi~ ~ty to
~ch m ~t ~ to r~ t~ ~e um~t~ in w~ or ~ ~b~ti~ p~ t~ or ~e
destroyS, it ~ ~ ~ option oft~ Ci~ ~ i~ pr~s to r~r or r~ild the
~ ~t~ fo~t (~) ~rs ~er t~ ~ of ~y ~ch ~ent, ~e ~s~ sh~ ~ve the
Ci~ ~ City's lgmt ~fi~ t~r~ ~ Ci~ ~1 ~ve not more ~ si~ (~) days ~ ~e
~e ~ ~ ~tion to ~ t~ ~s~ in ~t~ of the City's d~ision whir to rep~ or
r~u~ ~d ~, or ~y p~ ~ d~. Ift~ Ci~ ~1 ~i to ~ve ~e noti~ ~ore~d, or
t~ C~y d~i~ ~t to rep~ or r~d, ~ ~s~ ~! ~ve t~ fi~t to d~l~e ~s 1~
te~t~ by ~ ~ti~ to t~ Ci~ in ~r~ ~ t~ noti~ pro~sions oft~s
~mt. fft~ Ciw ~s to rear or r~ld ~d pr~, t~ City ~1 pro~te ~e work
of ~ reefing or r~l~ng ~t~ut u~n~le del~y, in a~rd~ ~ the th~ e~sting
CiF ~es.
& t~ ~ my build~ ~ ap~n~ ~e ~g~ by fire, ~hqu~e, ~ of w~, or
oth~ e~ ~, ~ s~l ~ve t~ fi~ to d~l~e ~s 1~ te~t~ by ~tt~
noti~ to ~ Ci~ in ~rd~ ~th the ~fi~ pro~sio~ oft~s ~t in w~ch ~t, the
~DAt~-P~ 2
J~5,~
City should receive insurance proceeds. Lessee may, at its own expense or with the insurance
proceeds and with the written consent of the City, elect to repair or rebuild said buildings or
appurtenances. IfLessce, with the ~pproval of the City, elects to repair or rebuild, the buildings
and appurtenance~ shall become the property of the City of Bremerton at termination of the lease.
Notwit~8 any other provision herein, no party to this lease shall be liable in damages to any
other party or person for termination of this lense because of the damage or destruction of the
Pren~ses or the Improvements, as described in this section.
lO. Uffiiti~. The Lessee, at the Lessee's sole expense, shall provide, or shall otherwise pay
for when due all co~s of utilities and other ~ices on or to the premises including, but not
limited to, provi~km of electridty, ~, w~te~, telephone, sewer, garbage, heating, j~itorial,
security, and ~'ound~ keeping. Levee ~ also p~y all chases for utility installation and
modilic~om thereto occasioned by the Levee's requirements. The City shall not be liable for
any i~jury, Io~ or damage eau~d by or resulting from any interruption or failure of said services
due to any caus~ whatsoever except the City's nesligence. The Lessee shall not be entitled to an
offset, reduction or return of rental as a result of any interruption or failure of said services.
11. Use and Care of Premises.
a. Genera! Condition: The premises used by Lessee shall at all times he kept in a neat,
clean, safe and sanitary condition, except when affected by mutual conditions beyond Lessee's
control and kept and used in accordance with the laws of the State of Washington and Charter
and ordinances of the City. Lessee shall not permit any waste, damage or injury to the premises.
b. M~intenance - l~pairs: The premises have been inspected by both parties and are
accepted by Lessee in their existing condition as of the commencement date of this lease, without
reservation. The City shah not he called upon to make any improvement or repair of any kind
upon ~ premises. All maintenance and repairs to Lessee's equipment and to the premises shall
be the responsibility of and shall be made at the sole expense of the Lessee.
e. Alterations: The Lessee shall not nmke, or cause to be made, any structural
alteration, addition or improvement on said Premises or to the Improvements without the written
consent of the City to such work if the cost of such work exceeds $15,000.00. Consent is not
required if the cost of work is less than $15,000.00. The City agrees to grant or deny such
consent within a reasonable period of time of Lessee's request. Non-structural improvements
may he made ~ Lessee's discretion. All alterations, additions and improvements shall he made at
the sole cost and expense of Lessee, and shall become the property of the City at the termination
ofthi~ lease. The City reserves an unqualified right to make alterations to the premises or to the
building at Lessee's expense in which the premises are situated (1) where conditions exist which
are deemed by the City to constitute an emergency, or (2) in order to correct code deficiencies.
d. Access: The City agrees that the premises, and specifically the square dance hall,
shall be made available to the members of Lessee's organization via the main entrance to the
KSDA L _~.~ - Pn~e 3
January 5, 20~0
premi~ ~d via the squ~e d~nce hell entrance. A list of paxsons authorized to hold keys to the
pre. mi~ ~ be m~int~ined by Levee and nmde available to the City. One key shall be provided
to the City. The City re.~erves for it~qf, its off~c, ers, employees, agents and contractors, free
acc. em to ~id pr~ani~es at all re~onable time~ for the purposes of inspecting the Premises and
Improvements, but this right shall not be c, onstrued as an agreement on the part of the City to
mike ~ illusions. The City re,~'ves the right to nulke miditions, repairs or ciera the
Prerahe~ ~d Improvements if conditions exist which constitute an emergency or dangerous
12. Limi~tio~l on U~.dPuri~o~. Notwithstanding any other provisions herein, the Lessee
si~ll not ~ into any sublease of the premi~e~ or any portion thereof or any assignment of any
inter~t ia this egr~e~ent, whether long or short term in nature, or engsge in any activity with
respagt to or o~ the premi~e~ other than the expre~ use(s) and purpose(s) stipulated herein,
without obt~hqg prior written authorization therefor from the City.
13. ~ Levee shall not permit may lien to be imposed upon the Premises as a result of
work do~e by or on belmif ofu~l' and shall inclen-miffd and hold the City harmless against any and
ali exl~eme~ including reasormble attorney's fees and court costs in connection with any such lien.
14. Lieense~, T~x~ ~ad PermiU. The Lessee shall pay all applicable federal, state and local
taxes, u~mployment insurance, soci*l security and workmen's compensation benefits, and shall
also fulfill all flscll obligations imposod by law or contract. Lessee shall also procure, at Lessee's
sole oq~nse, all Iipprovals and permits in compliance with all state and local laws, regulations and
requirements.
15. Le.s~el~oid Tax Liability. Lessee shall be responsible for remitting leasehold tax based
on la~d value pummnt to RCW 82.29A.030 to the City to be included with the rental payment
and ~ be r~pomible for any underpayment of leasehold tax and/or penalties resulting from any
State audit finding of leasehold tax liability.
l& No~-l~i~rimia~tioa. The Lessee ~hall comply with all federal, state and local laws and
ordimmces l~rohiblti~g discrimin~ion in employment with regard to age, sex, race, color, creed,
natio~l origin or physic, al or mental handicap, unless based upon a bona fide occupational
qualification.
17. Notice. Ali notices to be 8iven by either of the p~ties hereto to the other party shall be
in writing and nmy either he delivered persomdly or may be deposited in the United States Mail,
post~ge !~, as either certified or regular mail, addressed to:
City: Lessee:
City Clerk Kits~p Square Dauce Association
239 4th Street 6800 Old Beifair Highway
Bremerton, WA 98337 Bremerton, WA 98312
KSDA Le~e - P~ge 4
January 5, 2000
or to ~ other re-q~ctive addresses as eith~ party may from time to time designate in writing.
Notices sent by n~l shall be deemed to have been given when properly mailed; the postmark
affixed by the United States Post Office shall be conclusive evidence of the date of mailing.
1~. ~dlationldllp. In no event shall the City be construed, or held to have become in any way
or for any purpoae a partner, associate, or joint ven~ of the Lessee or any party associated
with the Levee in the conduct of the Lessee's business or otherwise. This lease does not
constitute the Lessee, the agent or legal representative of the City for any purpose whatsoever.
19. Ameadme~ts, The parties hereto expressly reserve the right to renegotiate the
provi~iom hereof, from time to time as may be neces~ry and to amend this lease accordingiy~
provided, however, that no alteration or modification of the terms or conditions hereof shall be
valid sad binding unless made in writing and signed by the authorized ~-presentatives of the
parties hereto.
20. WMver M' Default. No waiver of default by either party of any of the terms, covenants
and cond~iom he~eof to be performed, kept ~d observed by the other party shall be construed
as, or oper~e as, a waiver of any subsequent default of any of the terms, covenants and
conditions herein contained, to be performed, kept and observed by the other party.
21. Termination.
· . "Termination" means at such time as the lease is not extended for an additional period
of time.
b. City r~aerves the fight to terminate this lease together with all of the estate, right and
title thereby granted to or vested in the Lessee without cause provided Lessee is given one
hundred eighty (180) days advance written notice to vacate and surrender premises.
e. In the event that the Lessee defaults in the performance of any terms, provisions,
eovemnts and agreements on the Lessee's part to be kept, observed and performed, and such
default is not corrected within thirty (30) days ~ffter the receipt of notice thereof fi.om the City, or
such shorter period as may be necessary to public safety; or if the Lessee shall abandon, desert,
vacate or remove fi.om the premises; or if the Lessee sl~l file a petition in bankruptcy; or if the
Lessen shall he adjudicated a b~nkrupt after the filing of an involuntary petition in bankruptcy; or
if the Lessee shall take or receive the advantage or benefit of any insolvency; or if the Lessee shall
enter into an ~renment of composition with the Lessee's creditors; then, in such event, the City,
at its option at any time thereafter, may terminate this lease together with all of the estate, right,
and title thereby granted to or vested in the Lessee, by giving twenty (20) days notice in writing
or such election, by certified mail addressed to the Lessee at the address specified in Section 17 of
this a~'o~n~t, a~l at the expiration of such twenty (20) day period, the lease and all of the
estate, right, title ~ interest thereby granted to or vested in the Lessee shall then cease and
termimte, and the City may re-enter said premises using such force as may be required.
KSDA Leame - Pase 5
January 5, 2000
22. Surrender of l~mim. At the termination of this lease, including any extensions
thereof, the Lessee shall quit and surrender said Premises including ail fights, privileges,
easements, structures, Improvements and appurtenances and ail keys thereto and in as good
condition es existed at commencement of the term, subsequent to the date of this Lease, ordinary
wear and tear, damage or destruction by fire or other casualty or circumstances uncontrollable by
the ~ excepted; provided, that if alterations, additions or improvements have been made to
the premises as peovided in this lease, the Lessee shall not he required to restore the premises to
the condition in which they were prior to such aiterations, additions or improvements having been
made. Lessee droll have the obligation of removin8 any of its trade fixtures from the premises at
the termination of this lease and any extension thereof, unless ailowed by the City.
23. Adjudication. This lease shall he construed under all of the applicable laws, statutes,
ordinances, rules and regulations of the United States, the State of Washington, County of Kitsap,
and the City of Bremerton. In the case ora dispute between the parties, venue over such dispute
shall he with the Superior Court of K/tsap County, Washington.
24. Binding Effect. This lease shall be binding upon the heirs, successors, assigns and ail
other parties le~aily empowered with signatory rishts of any or ali of the parties hereto.
25. Invalidity of Provisions. Should any term, provision, condition or other portion of this
lease be held to be inoperative, invaiid or void, the same shall not affect any other term, provision,
condition or other portion of this lease; and the remainder of this lease shah be effective as if such
term, provision, condition or portion had not been contained herein.
26. City's Right to Audit. Lessee at such times and in such forms as the City may require,
shall furnish the City such periodic reports and documents as it may request pertaining to the
monthly income and/or the work or services undertaken pursuant to this contract, the costs and
obligations incurred or to be incurred in connection therewith, and any other matters covered by
this contract.
27. Indemnification and Insurance.
a. Indemnification: Lessee agrees to defend, indemni~, and hold harmless the City, its
appo/nted and elected officers and employees, from and against any and ail liability, loss, costs,
dama~, and expense, including costs and attorney fees in defense thereof, because ofaetions,
claims or lawsuits for damages resulting from personal or bodily injury, including death at any
time resulting therefrom, sustained or alleged to have been sustained by any person or persons,
and on account of damage to property, arising or alleged to have arisen directly or indirectly out
of or in consequence of the performance of this Agreement or the use of the premises, whether
such injuries to persons or damage to property is due to the negligence of Lessee, its members,
guests, invitees, subcontractors, agents or assigns. This provision shall he inapplicable to the
extent that such damage or injury is judicially found to he caused by the sole negligence of the
City.
KSDA l~.~e - Pa~ 6
b. A~umption of Risk: The placement and storage of personal property on said
prend~es shall be the responsibility, and at the sole risk, of the Lessee.
e. lnenrnnee: During the tenn of this lease and any extension thereof, the Lessee shall
secure and maintain policies of standard form comprehensive general liability insurance and
prope~ insurance with an insurance company licensed to do business in the State of Washington.
The ~eneral ~ policy shall provide protection and indemnification against any and all claims
for injury to person or property or for loss of life, including the liability of the City for such to the
Lessee and any of the Lessee's officers, employees and asents, and any liability of the Lessee as
such to the City, its officers, employees and agents, arising out of or in connection with the
occupancy and use of the Premises as -,veil as any and all claims and risks in connection with any
acts or omissions performed by Le~_see by virtue of the rights granted pursuant to this lease. Said
policy limits shall he in the amount of st least Five Hundred Thousand Dollars ($500,000.00).
The property insurance shall have limits in an amount equal to or greater than the reasonable
market value of property contained in or constituting the premises as approved of by the City of
Bren,,erton. Both policies shall specifically name the City of Bremerton as an additional insured
party thereunder ~ must stipulate that the coverages provided by said policy shall not he
terminatmt, reduced or otherwise changed in any respect without providing at least thirty (30)
days prior written notice to the City. Verification of insurance required in this paragraph shall he
delivered to the City within ten (10) days of execution of this Lease. Notwithstanding any
provisions herein to the contrary, the failure of the Lessee to comply with the provisions of this
section shall subject this lease to immediate termination.
2S. Agreement. This Lease constitutes the entire agreement and understanding of the
parties, and supersedes all offers, negotiations and other agreements. There are no
representations or understandings of any kind not set forth herein.
IN WITNESS WHEREOF, the parties hereto have affixed their signatures below.
KITSAP SQUARE DANCE ASSOCIATION
President, Russ Richardson
' eta~, ~v~ DeRego /~
//
//
KSDA i~' - P~e 7
Januat~ 5, 2000
CITY OF BREMERTON
Lynn S. Horton, M~yor
Approved as to form:
GLENNA MALANC& City Attorney
State of Washin~on )
Coun~ of Kitsap )
On this ~ day of Z~./~ 2000, personslly appeared Lynn S. Horton to me
known to be the Mayor ofth~City of Bremerton, ~t municipal corporation, that executed the
within and foregoing instrument, and acknowledged said instrument to be the flee and voluntary
act and deed of said municipal corporation, for the uses and purposes therein mentioned, and on
o&th sl~tted that she w~s authorized to execute said instrument.
In witness whereof I have hereunto set my hand and affixed my official seal the day and year
first nbove writton.
No .t~y.. l~bli~n~l ~or th~ State of W~hington
R~,~din8 ~t ~,'1~o~.., ~,~-~)
My commission ~pir~: ~__
KSDA Lease - P~ge 8
Janumy 5, 2000
Exhibit "B"
LEASE FORMULA
ASSET VALUE = FAIR MARKET VALUE OF LAND (3 + acres)
ANNUAL RENT = 1/12 OF ASSET VALUE
ANNUAL RENT
LESS NON-PROFIT CONTRIBUTIONS:
1) Capital Improvements Amortization
2) Repairs and Maintenance of Asset
3) Value of discounted or free Program Services offered to Public
= ANNUAL LEASE PAYMENT
+ LEASEHOLD TAX (12.84 % of fair market annual rent - imposed and mandated
pursuant to RCW 82.29A.030)
=TOTAL ANNUAL LEASE PAYMENT
Kitsap Square Dance Assoc. lease of land (3+ acres) on Old Belfair Hwy.
Market Value of Land 50,000
Annual Rent (1 / 12 o f Land Value - 50,000) 4150
Less KSDA Avg. Annual contributions: (based on actual expenses 92-98):
Land Repairs and Maintenance (avg) (1,000) (1000)
Value of Labor (1500 hrs x $8.00) (12,000 x 19%*) (2300)
Total Annual Contributions (3300)
* 19% = ratio of land to total property value
Annual Lease Amount 850
Plus Leasehold Tax 530
(12.84% of annual rent of $4150 based on 1/12 of total
market value of land $50,000 pursuant to RCW 82.29A.030)
TOTAL ANNUAL LEASE PAYMENT 1380
KITSAP SQUARE DANCE ASSOCIATION
RV P.4A~.K EXPENSES
1993 through 1998
Year Material Utilities Equipment Labor Total
1993 $353.00 $208.00 $0.00 $2,083.00 $2,644.00
1994 $2,300.00 $315.00 $240.00 $8,223.00 $11,078.00
1995 $469.00 $321.00 $50.00 $3,521.00 $4,361.00
1996 $934.00 $430.00 $80.00 $6,560.00 $8,004.00
1997 $816.00 $397.00 $130.00 $6,215.00 $7,558.00
1998 $793.00 $349.00 $90.00 $3,918.00 $5,150.00
Average AnaualIncome = $2,011
As of 4-1-99KSDAowed$4,504 on anout~anding loan forRVimprovemems.
$6.00/night/RVs~e
63RVsRes