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HomeMy WebLinkAbout2.70 Original ContractIt is hereby agreed: AMENDMENT TO LEASE AGREEMENT WHEREAS, Robert Stokes is a successor to the premises. 2. The Lease Agreement is further amended as follows: 2.70 AMENDMENT 1 WHEREAS, on September 2, 2009, the City of Port Angeles, a municipal corporation of the State of Washington "City entered into a Lease Agreement (referred to herein as "Lease Agreement with Blowhard Glass, LLC, a limited liability company of the State of Washington "Lessee relating to the occupancy of the building located at 110 E. Railroad Avenue; and Bert Stokes and City "the Parties for valuable consideration enter this Amendment on this J R ay of October 2012, for the purposes of assigning the Lease Agreement between the Parties. 1. Assignment: The Lease Agreement has been assigned by Blowhard Glass, LLC, to Robert Stokes. The City consents to such assignment and hereby accepts Robert Stokes as its Tenant. Robert Stokes accepts the assignment and agrees that it is a successor in interest to Blowhard Glass, LLC, and that it is bound by all of the obligations, duties, terms and conditions of the Lease Agreement as the Tenant. A. Rent. Section 3 of the Lease Agreement shall be modified as follows: The Lessee agrees to pay the City during the initial term of this lease a monthly sum of Three Hundred ($300.00) Dollars plus leasehold tax due on or before the 10` day of each month. If Lessee exercises its Option to Renew, the Lessee agrees to pay Four Hundred Fifty ($450.00) Dollars per month plus leasehold tax during the third year, and Five Hundred ($500.00) Dollars per month plus leasehold tax during the fourth and fifth years (the fourth year beginning September of 2012). The Lessee agrees to pay the monthly rental amount and all leasehold taxes on or before the 10` day of each month. For lease payments more than three days late, there shall be a late fee of $10.00 plus one dollar per month interest. B. Subletting or Assignment. Section 6 of the Lease Agreement shall be modified as follows: The Lessee shall not sublease or underlet any part of said premises without the written consent of the City. C. Notice. Section 23 of the Lease Agreement shall be modified as follows: Any notice required to be given by either party to the other shall be deposited in the United States mail, postage prepaid addressed to the City at: City of Port Angeles, 321 East 5 Street, P.O. Box 1150, Port Angeles, Washington 98362 or to Lessee at: 118 1 /2 E. Front, Port Angeles, WA 98362 or at such other address as either party may designate to the other in writing from time to time. 3. Except as expressly provided above, the 2009 Lease Agreement is hereby ratified and confirmed. IN WITNESS WHEREOF, this lease has been executed the date and year first above written. CITY OF PORT ANGELES Dan McKeen, City Manager Attest: sa Hurd, City Clerk Approved as to form: William Bloor, City Attorney ROBERT STO Robert Stokes State of Washington ss. County of Clallam On this 2 day of 2012, personally appeared before me Dan McKeen and Janessa Hurd, to me known to be the City Manager and City Clerk, respectively, of the City of Port Angeles, the municipal corporation that executed the within and foregoing instrument, and acknowledged said instrument to be the free and voluntary act and deed of said municipal corporation, for the uses and purposes therein mentioned, and on oath stated that they were authorized to execute said instrument and that the seal affixed, if any, is the corporate seal of said municipal corporation. IN WITNESS WHEREOF I have hereunto set my hand and affixed my official seal the day and year first above written. wuu ►►►►r i QI MAN ,Isi x „,OTAPi EXP 05121/2014 S AU WAS 1> State of Vl `fa's iY g ton County of Clallam ss. On this \'t.. day of c, o.rL E 2012, personally appeared before me Robert Stokes, to me known to be the individual described in and who executed the within and foregoing instrument, and acknowledged to me that he signed the same as his free and voluntary act and deed for the uses and purposes therein mentioned. IN WITNESS WHEREOF I have hereunto set my hand and affixed my official seal the day and year first above written. G :\LEGAL \a LEASES\ Blowhard .Lease.Amendment.9.26.12 wpd Notary Public in and for the State of Washington residing at My_,commission expires: S Notary Public in and for the State of Washington residing at bw My commission expires: 5 -3- Paul J Labrie BHG Blow Hard Glass LLC/RBS Studio 110 East Railroad Ave Paul Labrie BHG and Robert Stokes RBS Port Angeles, WA 98362 To the City of Port Angeles Real Estate Committee Blow Hard Glass LLC (BHG) and RBS Studio (RBS) would like the city to consider the following changes to our existing lease agreement. 1- Remove BHG as the current lease holder and assign RBS Studio as the current tenant of record for the remainder of the lease terms in all aspects currently accorded to BHG. 2- Adjust the terms of the lease to hold the current rent at the existing 3 year rate for the remainder of the lease terms, year 4 and 5. 3- These changes would take place at the next billing period September 2012 Thank you for your time on this matter. As always we appreciate your assistance and look forward to continuing to participate in the revitalization of the downtown business core. Robert Stokes RBS ~.,o LEASE AGREEMENT THIS LEASE AGREEMENT IS made this ~ day of~fh>\"!\k V-- 2009, by and between the City of Port Angeles, a mumclpal corporatIOn of the State of Washmgton, heremafter known as the City, and Blowhard Glass, LLC, heremafter known as Lessee I Premises For and m consideration of the mutual promises, covenants and conditions set forth herem, the City does hereby covenant and agree to let and lease unto the Lessee the bUlldmg, and only the currently eXlstmg bUlldmg, commonly Identified as I 10 East Railroad Avenue, Port Angeles, Washmgton, and situated on the followmg descnbed property A portIOn of Tideland Block I, east of Laurel Street wlthm the Port Angeles Tidelands, Clallam County, Washmgton, descnbed as follows The north 90 feet of the east 15 feet of Lot 8 and the north 90 feet of the west half of Lot 7 Exhibit "A," which IS attached hereto and mcorporated by this reference, depicts the bUlldmg locatIOn on the property 2 Term This lease shall be for a penod of two (2) years commencmg on the first day of October, 2009, and termmatmg at mldmght on August 3 1,201 I The Lessee IS granted the optIOn to extend this lease for an additIOnal term of 3 years, With rent as provided m SectIOn 3 below To exercise this optIOn, Lessee must give wntten notice to the City not later than Apnl 30,201 I The Lessee may renew this lease for an additIOnal five (5) years, subject to renegotiation of the terms and conditions of this lease agreement Lessee must give wntten notice of his desue to renew to the City not later than Apnl 30, 2014 3 Rent The Lessee agrees to pay the City durmg the mltlal term of this lease a monthly sum of Three Hundred ($300 00) Dollars plus leasehold tax due on or before the 10th day of each month If Lessee exercises ItS OptIOn to Renew, the Lessee agrees to pay Four Hundred Fifty ($450 00) Dollars per month plus leasehold tax dunng the thud year, SIX Hundred Seventy Five ($675 00) Dollars per month plus leasehold tax durmg the fourth year, and One Thousand Twelve Dollars and 50 Cents ($1,01250) per month plus leasehold tax durmg the fifth year of the Lease The Lessee agrees to pay the monthly rental amount and all leasehold taxes on or before the 10th day of each month For lease payments more than three days late, there shall be a late fee of $1 0 00 plus one dollar per month mterest 4 Use of the Premises A The premises hereby leased are to be used for and m connectIOn With the purpose of a glass blowmg studIO located m the north front II3, an art gallery m the middle II3 of the bUlldmg, and a sculpture studiO m the south final II3 of the -1- bUlldmg The premIses shall not be used for any other purpose without pnor wntten consent of the City. The Lessee shall not operate on, or permit the operatIOn upon these premises of, any unlawful activIties, or any public nUisance or any busmess wluch IS m vIOlatIOn of the laws of the Umted States of Amenca, the State of Washmgton, or the City of Port Angeles 5 Rep31rs and Mamtenance Premises have been Inspected and are accepted by Lessee m then present conditIOn Lessee shall, at ItS own expense and at all times, keep the premises neat, clean and m a sanitary condItIOn, and keep and use the premises In accordance with applicable laws, ordmances, rules, regulatIOns, and reqUirements of governmental authontles Lessee shall permit no waste, damage or Injury to the premises and shall remove Ice and snow from sidewalks adJolmng the premises Lessee shall make such repans as necessary to mamtam the premises m as good conditIOn as they now are The Lessee shall be responsible for the mamtenance and upkeep m a safe condition and presentable manner The Lessee shall be responsible for secunng, at Lessee's expense, any permit reqUired for repair, mamtenance or constructIOn on the premises 6 Sublettmg or Assignment Except for a sublease to Bob Stokes, the Lessee shall not sublease or underlet any part of s31d premises nor assign thiS sublease Without the wntten consent of the CIty 7 L13bllitv and Insurance The Lessee shall forever mdemmfy, defend, and hold the City harmless from all losses, claims, and damages for any injury to person or property that may result from or be caused m any manner by the Lessee's use of the premises, and the Lessee shall defend any claim or litigatIOn agamst s31d City ansmg from such mJunes at the Lessee's expense, except the Lessee shall have no obligatIOn to defend or save and hold the City harmless from damages arlsmg from the sole negligence of the City, ItS agents, contractors or employees The Lessee shall provide proof of general liability insurance m the amount of $1,000,000 00 The Lessee shall cause the City of Port Angeles to be named as an additIOnal msured on all liability policies and proVide endorsement ofmsurance to the City In the event Lessee's use of the premises mcreases the ratmg for fire and extended coverage or liability msurance, Lessee agrees to pay for such mcrease 8 Improvements It IS further expressly agreed and understood that the premises currently are not served With electnc utility service City agrees It will extend smgle phase electnc servIce to the eXlstmg masthead at the NE comer of the bUlldmg Lessee agrees to make all connectIOns and do all wmng needed to provide electncity inSide the bUildIng for the uses and purposes of the Lessee Lessee will be solely responsible for the cost of proVidIng or upgradmg such services All such utJhty work shall be pursuant to appropnate permits and performed by licensed contractors Lessee shall save City harmless and satisfy any charges that may result -2- from any work performed on said bUlldmg or for utIhtIes done to service said bUlldmg Lessee shall make no structural alteratIOns to Said premises Without the pnor wntten approval of City Upon the eXpiratIOn or termmatlOn of thiS lease, any Improvements become the property of the City 9 Default and Re-entrv If the Lessee falls to mamtam and operate ItS busmess as descnbed m SectIOn 4, or falls to keep or perform any or all of the covenants and agreements herem contamed, and fails to cure said default wlthm 30 days of notIce of default by City, then thiS lease may be termmated. If the Lessee shall fall to qUit and surrender said premises upon termmatlOn of thiS lease or any extensIOn thereof, the Lessee shall be liable to lawful eVictIon If the Lessee falls to cure Said default, Bob Stokes (d/b/a StudIO Bob) shall be given an opportumty, for 10 days followmg Lessee's nght to cure, to cure the default and assume thiS lease 10 UtIhtIes and Fees Lessee agrees to pay all charges for hght, heat, water, sewer, garbage, stormwater and all other utIhtIes and services to the premises durmg the full term of thiS lease and any extenslOns thereof All other Items mcludmg all license fees and other governmental charges leVied on the operatIOn of Lessee's busmess on the premises shall be paid directly by Lessee II Signs All signs or symbols placed by Lessee m the wmdows and doors of the premises, or upon any extenor part of the bUlldmg shall be subject to City's pnor wntten approval, which approval shall not be unreasonably Withheld All signs must comply With sign ordmances and be placed m accordance With reqUired permits City may demand the removal of signs which are not so approved and Lessee's failure to comply With Said request wlthm forty-eight (48) hours will constItute a breach of thiS paragraph and will entItle City to termmate thiS lease or, m lieu thereof, to cause the sign to be removed at the sole expense of the Lessee At the termmatlOn of the lease, Lessee Will remove all signs placed by It upon the premises and Will repair any damage caused by such removal 12 Liens and Insolvency Lessee shall keep the premises free from any hens arlSlng out of any work performed by or at the request of Lessee Should any liens be filed agamst Said property as a result of the acts or omissions of Lessee and Lessee does not promptly remove Said hens, then City may cancel thiS lease or pursue other remedies at ItS optIOn In the event Lessee becomes msolvent, bankrupt or If a receiver, assignee or other liqUldatmg officer IS appomted for the busmess of Lessee, City can cancel thiS lease at ItS optlOn -3- 13 Damage or DestructIOn In the event the premises are rendered untenantable m whole or m part by fire, the elements, or other casualty, City may elect, at Its optIOn, not to restore the premises and shall so notify Lessee, in which event Lessee shall vacate the premises and this lease shall be termmated, or m the alternative, City shall notify Lessee, wlthm thirty (30) days after such casualty that City will undertake to restore the premises and that such work can be completed wlthm one hundred eighty (180) days from the date of such notICe ofmtent If City IS unable to restore or rebUild the premises wlthm the said one hundred eighty (180) days, then the lease may be termmated at Lessee's optIOn by wntten ten (10) days notice to City Durmg the penod of untenantability, rent will abate m the same ratio as the portIOn of the premises rendered untenantable bears to the whole of the premises 14 Access The City shall have the nght to enter the premises at all reasonable times for the purpose of mspectlOn or of makmg repmrs, additIOns or alterations and to show the premises to prospective tenants or purchasers for one hundred eighty (180) days pnor to the expiratIOn of the lease term or any extensIOns thereto Except for emergencies, City shall give 24 hours pnor notIce to Tenant of City's mtent to mspect, repmr or show the premises IS FacilIties NondlscnmmatlOn The Lessee will not, on grounds of race, color, religIOn, sex, phYSical or mental handicap, or natIOnal ongm A Deny an mdlvldual any services or other benefits proVided under thiS agreement, B ProVide any servlce( s) or other benefits to an mdlvldual which are different, or are prOVided m a different marmer from those proVided to others under thiS agreement, C Subject an mdlvldual to segregatIOn or separate treatment m any manner related to the receipt of any servlce(s) or other benefits proVided under thiS agreement, D Deny any mdlvldual an opportUnity to partiCipate m any progrmn prOVIded by thiS agreement through the proVISIOn of services or otherwise, or afford an opportUnity to do which IS different from that afforded others under thiS agreement The Lessee, in determmmg (I) the types of services or other benefits to be prOVided or (2) the class of mdlvlduals to whom, or the situatIOn m which, such services or other benefits will be proVIded or (3) the class of mdlVlduaIs to be afforded an opportunity to participate m any services or other benefits, will not utilize cntena or methods of admmlstratlOn whICh have the effect of subJectmg mdlvlduals to dlscnmmatlOn because of their race, color, sex, religIOn, natIOnal ongm, creed, or the presence of any sensory, mental or phYSical handicap -4- 16 CItv' s Right to Cure Defaults A If the Lessee fails to perform any reqUIrements or obligatIOns under thIs lease, the CIty shall have the option to correct any default of thIs lease by the Lessee after thIrty (30) days' wntten notice to the Lessee All of the CIty's expendItures to correct the default shall be reImbursed by the Lessee on demand, wIth mterest at the rate of one percent (1 %) per month accrued from the date of expendIture by the CIty B. In the event any vIOlatIOn or breach of the provIsIOns of thIs lease IS causmg damage to the leasehold premIses or the Lessee IS utllIzmg the leasehold premIses m a manner not permItted by the provIsIOns of thIS lease, or m any case damages are occurrmg to the leasehold premIses, the CIty may Immediately enter upon the leasehold premIses and take such actIOn as necessary to cease such damages or use In the event the damage to the leasehold IS occurrmg as a result of any vIOlatIOn or breach of prOVISIOns ofthls lease by Lessee, the Lessee shall be liable for all costs mcurred by the CIty If the CIty acts to cure such damages The CIty, at ItS optIOn, may send notice to the Lessee of such vIOlatIOns and the Lessee shall ImmedIately cease such use or vIOlatIOn and correct and remedy such vIOlatIOns 17 Removal of Propertv. In the event the CIty lawfully re-enters the premIses as provIded herem, the CIty shall have the nght, but not the obligatIOn, to remove all ofthe personal property located therem and to place such property m storage at the expense and fisk of Lessee 18 Costs and Attornev's Fees If, by reason of any default or breach on the part of any party m the performance of any of the proVISIOns of thIS lease, a legal actIOn IS mstltuted, the losmg party agrees to pay all reasonable costs and attorney's fees m connectIOn therewIth It is agreed that the venue of any legal actIOn brought under the terms of thIS lease shall be m Clallam County 19 Holdmg Over If Lessee, WIth the Implied or express consent of the CIty, shall hold over after explfatlon of the term of thIS lease, Lessee shall remam bound by all the covenants and agreements herem, except that the tenancy shall be from month to month 20 TerrmnatlOn As material consIderatIOn for thIS Agreement, and m addItIOn to all other fights aVailable to the PartIes, eIther Party shall have the fight to termmate thIS Agreement pursuant to thIS SectIOn 20 ThIS fight to termmate may be exercIsed at any time as follows A EIther Party shall gIve wfltten notice of termmatIOn to the other party B The notice shall state the effective date of termmatIOn -5- C The notice shall be dehvered at least 90 days pnor to the effective date of terminatIOn D Neither Party shall mcur any hablhty whatsoever to the other or to any third-party on account of termmation effected pursuant to this sectIOn E TermmatlOn pursuant to thiS SectIOn may be exercised only m the event of the occurrence of one or more of the following conditIOns (1) The City agrees to sell the Property, (2) the City permanently alters the current routmg of motor vehicle traffic to the ferry dock, (west on Front, north on Lmcoln, west on Railroad) or (3) the City or Lessee declares ItS mtent to change the use of the Property to a use different from those prescnbed m SectIOn 4 above 21 Bindmg on Heirs, Successors and ASSigns The covenants and agreements of thiS lease shall be bmdmg upon the heirs, executor, admmlstrators, successors, and assigns of both parties hereto, except as heremabove provided 22 Reimbursement for Improvements In the event, and only m the event, the City exercises the termmatlOn nght granted m Paragraph 20, the City shall reimburse Lessee for Improvements Lessee has made to the premises With City's consent as follows A Wlthm the first year, 100% reimbursement, B Wlthm the second year, 80% reimbursement, C Wlthm the thud year, 60%, D Wlthm the fourth year, 40%, and E Wlthm the fifth year, 20% To be ehglble for thiS reimbursement, a cost or expense must be approved m wntmg by the City before It IS mcurred by Lessee 23 Notice Any nohce reqUired to be given by either party to the other shall be deposited m the Umted States mali, postage prepaid addressed to the City at City of Port Angeles, 321 E:\ 5th Street, POBox 1150, Port Angeles, W A 98362 or to Lessee at 28"8'iR YY\f1Y'\ ('OJ(. e.c: Port Angeles, W A 98362 or at such other address as either party may deslgnate to the other m wntmg from time to time 24 LItigatIOn In the event this lease, ItS terms, It use, ItS occupatIOn or It m any way becomes a matter of htlgatlOn, the City shall be notified of such htlgatlOn wlthm fifteen (15) days after such litigatIOn IS begun. Failure to notify the City of such actIOn shall be cause for -6- cancellation or termInatIOn of this lease This lease shall be governed by and construed In accordance with the prOVISIOns of the ordInances of the City and with the laws of the State of WashIngton, and applicable federal law If legal action is necessary to enforce same, exclUSive JunsdlctJon and venue shall lie In the Supenor Court of Clallam County, WashIngton 25 TIME IS OF THE ESSENCE OF THIS LEASE 26 Capacltv of Slgnatones Each IndiVidual executIng this lease on behalf of the City and Lessee represents and warrants that he or she IS duly authonzed to execute and deliver thIS lease on behalf of saId party IN WITNESS WHEREOF, the partIes hereto have hereunto set then hands and seals the date first wntten above THE CITY OF PORT ANGELES Manager HARD GLASS, LLC ed As To Form ( ~ /~ --;2 WIlliam E Bloor, City Attorney STATE OF WASHINGTON ) ) ss ) COUNTY OF CLALLAM On thIs day personally appeared before me Paul LaBrie, to me known to be the Manager of Blowhard Glass, LLC, that executed the wlthm and forgomg mstrument, and acknowledged said mstrument to be the free and voluntary act and deed for the uses and purposes therem menltoned and on oath stated that he IS authOrIzed to execute the said mstrument -7- GIVEN unto my hand and officIal seal this J& day o~~hR r- , 2009 . '--O<..-~~ i\\. r """" Notary PublIc ,~ State of Washington NO RY PU).lLIC m (.d for the State of resldmg at ~b '\.-:\ ~. JEANIE M. DEFRANG My commiSSIOn expires 5- a." _ \ \ MY COMMISSION EXPIRES . May 25, 2011 ashmgton STATE OF WASHINGTON ) ) ss ) COUNTY OF CLALLAM On this day personally appeared before me Kent Myers, to me known to be the City Manager of the City of Port Angeles that executed the wlthm and foregomg mstrument, and acknowledged said mstrument to be the free and voluntary act and deed of saId mUnICIpal corporatIOn, for the uses and purposes therem mentIOned and on oath stated that he 15 authOrIzed to execute the saId mstrument GIVEN unto my hand and offiCial seal thiS ;)J;iW day of s,~..,^ . 1".. V- , 2009 0-<:>,,,-,- '0r- ~\,~ NOT PUBLIC m ~ the State ofWashmgton resldmg at Yo,,+- (,. 0..-:::. My commiSSIon expires ";'.;:J:5' - 1\ . G \LegaJ_Badup\LEASESIlIX)9 ~\Blowlmrd Le:l$eOS2609do!; Notary Public State of Washington JEANIE M. DEFRANG MY COMMISSION EXPIRES May 25. 2011 -8- f Exhibit 'A' 60 ~ N Feet