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HomeMy WebLinkAbout2.63 Amendment2.63 THIRD AMENDMENT TO LEASE AND MANAGEMENT AGREEMENT WHEREAS, on September 7, 2006, the City of Port Angeles, a municipal corporation of the State of Washington ( "City "), entered into a Lease and Management Agreement (referred to herein as "Agreement ") with Heckman Motors, a corporation of the State of Washington ( "Heckman "), relating to the occupancy of the property at 111 E Front Street in the City of Port Angles; and WHEREAS, the Agreement was amended in the First Amendment to the Agreement ( "the First Amendment ") and subsequently into the Second Amendment to the Agreement ( "Second Amendment ") which amendments are hereby incorporated; WHEREAS, Heckman has settled a disputed claim with the City. / The City and Heckman for valuable consideration enter this Amendment on this �7 day of 2014, for the purposes of revising the Agreement between the Parties. It is hereby agreed: 1. Paragraph 4(a) of the Agreement and paragraph 4 of the Second Amendment and paragraph 3 of the First Amendment are amended in their entirety to read: (a) Heckman shall pay to the City a monthly fee for the license to occupy, use, and manage Parcel 2 in the amount of Three Thousand One Hundred One dollars and Seventy -Four cents ($3101.74) plus leasehold tax. 2. Except as expressly provided above, the 2006 Lease Agreement is hereby ratified and confirmed. IN WITNESS WHEREOF, this lease amendment has been executed the date and year first above written. CITY OF PORT ANGELES I HECKMAN MOTORS Dan McKeen, City Manager Jack S! Approved as to form: Attest: Ja sa Hurd, City Clerk William Bloor, ity Attorney State of Washington ) ) ss. County of Clallam ) On this day of 2014, personally appeared before me Dan McKeen and Janessa urd, to me know to be the City Manager and City Clerk, respectively, of the City of Po " Angeles, the mun cipal 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. N% j&Uf1WQESS WHEREOF I have hereunto set my hand and affixed my official seal the day `oArvs l a e written. `V • EXP pp.�4/2018 Notary Public and for tl} tate of Washington N� pUg`�Ci �+ residing at'7_ %y� • �. ®�,o My commission expires; — - 1. o ®i� OP StN on ) ss. County of Clallam ) On this day of �... �r� r�1� -�,- , 2014, personally appeared before me Jack Heckman, to me know ! to be the Preside At of the Heckman Motors, that executed the within and foregoing instrument, and acknowledged said instrument to be the free and voluntary act and deed of said agency for the uses and purposes therein mentioned, and on oath stated that he is authorized to execute the said instrument. IN WITNESS WHEREOF I have hereunto set my hand and affixed my official seal the day and year first above written. OTAR ''•� �7CP. 02124/20161 HAC LEA E \2014 Leases\Heokman/tnCPdniM °r (P ss IOU V-1 0 ® � � ® �® 7 e0 °00e °00O `I'llin1<10%% I otary Public and for / S to of Washington residing at My commission -2- SETTLEMENT AGREEMENT TO SATISFY LEASEHOLD EXCISE TAXES This Agreement is made between the City of Port Angeles (hereinafter referred to as the "City ") and Heckman Motors, Inc., a Washington corporation, (hereinafter referred to as Heckman Motors. In consideration for the benefits to be derived from compliance with this Agreement, and for the purpose of satisfying the leasehold excise taxes owed by Heckman Motors, the parties recite and covenant as follows: 1. Recitals. A. The City claims that as of September 30, 2013, Heckman Motors owes to the City the past due installments of leasehold excise taxes in the sum of $28,719.64. Heckman Motors disputes this claim. B. The City and Heckman Motors signed a Lease and Management Agreement on September 7, 2006 (the Agreement). The Agreement described the terms whereby Heckman would lease parcel one and manage parcel 2. C. The City and Heckman Motors have agreed to settle the disputed claim on the terms and conditions stated below. 2. Agreements: A. Heckman Motors will pay to the City past due leasehold excise taxes in the sum of $14,359.82. B. The amount of $14,359.62 is to be paid in 60 continuous monthly installments of $239.33 beginning January 2014; and Heckman Motors will make a like installment on the same day of every month thereafter until the amount is paid in full. C. The property lease monthly amount for Parcel 1 as described the Agreement due is $1,692.60 which includes leasehold tax. All other term of the Agreement regarding parcel 1 dated September 7, 2006 remain unchanged. D. The monthly amount due for Parcel 2 as described in the Agreement is $3,500 that includes leasehold excise tax. All other terms set out in the Agreement regarding Parcel 2, remain unchanged except the Agreement is hereby amended to provide that monthly payments shall be $3,500 including leasehold excise tax beginning January 1, 2014. E. So long as Heckman Motors remains in good standing with the terms of this Agreement, no additional interest and penalties will accrue. If the payments described above are fully and timely paid, then the City will forgive the remaining taxes, interest and penalties, in the amount of $14,359.82. F. Time is of the essence for this agreement. In the event Heckman Motors fails to timely and fully make any payment required above, the City may declare this Agreement to be terminated. In that event, the full amount of taxes, interest, and penalties, calculated as if this Agreement had not been made, shall immediately become due and payable. 3. Entire Agreement. This Agreement constitutes the entire agreement between the City and Heckman Motors, Inc. and it supersedes all prior communications and proposals, whether electronic, oral, or written between the City and Heckman with respect to the leasehold excise taxes covered by this Agreement. IN WITNESS WHEREOF, the City and Heckman Motors, Inc., have executed this Agreement as of the date and year last written below. CITY OF PORT ANGELES By: Title: C,, Date: dd1AIy HECKMAN MOTORS, INC. itle: Da i PORT NGELES f_" , City ��>�csrl�?c�t,r`�� <��r�c,e January 14, 2014 Mr. Jack Heckman Budget Rent A Car 11 I East Front Street Port Angeles, WA 98' )62 RE: Sale of Vehicles in the Central Business District Dear Jack: This letter is intended to summarize past conversations regarding the sale of vehicles on property located within the City's Central Business District, specifically at 111 East Front Street. A car rental business has been conducted on this property for many years. You currently own and conduct that business. The property is leased from the City. Over past years, City staff have discussed with you the various activities that can occur on the subject property due to the zoning being Central Business District (CBD). While car rental businesses are permitted in the CBD, automobile dealerships are not. You are aware that, while the sale of vehicles used in your car rental fleet that are being phased out of fleet use may be offered for sale on site, vehicles that are acquired with the intent to sell independently, not intended for rental use, may not be offered for sale on the property in the CBD. I hope that this information is clear to you. If you have any questions, please don't hesitate to contact Community & Economic Development staff. Sincerely, Dan McKeen City Manager Cc: Nathan West, CED Bill Bloor, City Attorney Property File Acknowledged by: t - 1.aa Heckman Budget Rent -A -Car Phone: 360 -417 -4500 / Fax: 360 -417 -4509 We ite: wlnaw.dtyofpa.us / €na €l: cityrnanager@cityofpa.us 321 East Fifth Street - P.O. Box 1150 / Fort Angeles, VVVA 98362-0217