055-12 - Peninsula Feed - ContractWhen recorded Return to:
City Clerk
City of Port Orchard
216 Prospect Street
Port Orchard, WA 98366
PORT ORCHARD CITY OF 201208300128
Lease Reo Fee: $ 67.00
08/3012012 01:00 PM Page: 1 of 6
Walter Washington, Kitsap Co Auditor
1111111111111111111111111111111111 IN 1111111111111111111111111111111111111111111 IN
Grantor (Lessor): City of Port Orchard, Washington
Grantee (Lessee): Peninsula Feed
Legal Description: SW 1/4, SW 1/4, Section 26 Township 24 N, Range 1 East. Complete
Legal Description set forth below.
Tax Parcel No.: Public Right -of -Way, no tax parcel assigned.
LEASE
This Lease is made and entered into this day by and between City of Port
Orchard, a Washington municipal corporation, hereinafter called "Lessor," and
Peninsula Feed Company, hereinafter called "Lessee":
WITNESSETH:
1. Premises and Term. In consideration of the covenants and agreements
hereinafter set forth and other good and valuable consideration, Lessor hereby leases
unto Lessee the following described property situated in Kitsap County, Washington
(the "Premises"):
Section 26, Township 24, Range 1 East, that section of Harrison Avenue
right of way described as follows: Beginning at the northeast corner of the
intersection of Harrison Avenue and Bay Street; thence 200 feet
northward along the east margin of Harrison Avenue; thence west 25 feet;
thence south 200 feet along a line parallel to the east margin of the
Harrison Avenue right of way; thence west 25 feet to the point of
beginning.
Peninsula Feed Lease No. 055-12
Page 1 of 6
The term of this lease shall be for five (5) years commencing on September 1,
2012, and ending on August 30, 2017.
2. Rent. Lessee agrees to pay to Lessor the sum of Four Hundred Fifty-three
Dollars and 34 cents ($453.34) per month plus leasehold tax for the monthly rental, due
and payable to the City of Port Orchard, located at 216 Prospect, Port Orchard, WA, on
or before the first day of each month during the term of the lease beginning September
1, 2012. The parties agree that the rent amount represents the true and fair market value
of the leased Premises. In the event payment of the monthly rental is more than ten (10)
days late, there shall be added to the rent the amount equal to 10% of the rental
payment then due for each such delinquent payment.
3. Rent Adjustments. The monthly rent shall be adjusted on September
1st of each year to reflect the cost of inflation in the following manner. The Lessor shall
use the Seattle CPI-U factor as listed by the Department of Labor for the month of
October to adjust the monthly rent charged for August of the year. That adjusted rent
shall be the monthly rent for the period of September 1 of that year until August 30 of
the subsequent year. The Lessor shall notify the Lessee of the adjusted rent by certified
mail, no later than August 1st or the rent shall remain unadjusted for the next 12-month
period.
4. Formula Adjustment. The rent is based upon the formula used by the
Washington State Department of Natural Resources as it pertains to nonwater-
dependent uses on property leased to the City of Port Orchard. If the lease is renewed,
the Lessor shall revisit the lease formula and use the current assessed land values to
calculate the adjusted rent.
5. Option to Renew. So long as Lessee is not in default hereunder, Lessee
shall have the option to renew this lease only once for an additional five (5) year period
upon the same terms and conditions as set forth herein, except as to rent, upon written
notice by Lessee to Lessor of such election at least go days prior to the expiration of the
original lease term. The annual rental rate to be charged and paid during the renewed
lease term shall be renegotiated by the parties prior to the expiration of the original
lease term. In the event the parties are not successful in arriving at a mutually agreeable
rate by that time, the issue shall be submitted to arbitration for resolution, in the
manner provided for arbitrations as set forth below. Provided further, however, in no
event shall the rental rate be less than the rental amount charged in the original lease. A
subsequent lease may be renegotiated after the first lease and option period.
6. Taxes. In addition to the rental amount, the Lessee will be responsible to
pay before delinquency any real estate taxes and assessments or any leasehold taxes, if
any, related to the Premises. Lessee shall have the right to contest any such taxes.
Lessor shall reasonable cooperate with Lessee in connection with any such contest.
Peninsula Feed Lease No. 055-12
Page 2 of 6
7. Reservation of Lessor's Rights. Lessor reserves the right to modify
the Lease at any time to remove from the Lease a portion of the Premises, if such
portion is required for street, pedestrian, or parking. Such modification shall be
effective upon go days written notice to Lessee. Such modification shall change the
description of the Premises; all other provisions of the Lease, except the rent, shall
remain in full force and effect. The rent will be modified to reflect the smaller area
available to the Lessee.
8. Maintenance and Repair. Lessee, at Lessee's sole expense, shall keep
in good condition and repair all portions of the Premises. Lessee agrees to keep the
Premises neat and clean and in a sanitary condition; and upon surrendering possession,
to leave the Premises in condition equal to or better than as of the effective date of this
Lease subject to ordinary wear and tear and damage caused solely by Lessor and
Lessor's employees. The Lessee will not make any alterations, additions, or
improvements without the prior written consent of the Lessor.
9. Indemnification and Liability. Lessee agrees to save harmless and
indemnify Lessor against and from all demands, claims, causes of action, or judgments,
and all reasonable expenses incurred in investigating or resisting the same for injury to
person, loss of life, or damage to property occurring on the Premises and arising out of
Lessee's use and occupancy (unless due solely to Lessor's negligence or willful
misconduct); and Lessee agrees to carry liability insurance to protect Lessor with
insurance limits to be reasonable approved by Lessor.
10. Holding Over. If Lessee remains in possession of the Premises after the
expiration of this Lease, such possession shall, if rent is accepted by Lessor, create a
month -to -month tenancy on the terms herein specified, and said tenancy may be
terminated at any time by either party by thirty (30) days notice to the other party of
such termination.
11. Assignment and Subletting. Lessee shall not assign this Lease nor
sublet the Premises without Lessor's written consent. In addition to its ordinary
meaning, assignment and/or subletting shall include but not be limited to the following
transfers from Lessee of its entire or partial interest in the Premises to one or more of
the following entities: (1) any entity resulting from a merger or consolidation with
Lessee or any organization purchasing substantially all of Lessee's assets, (2) any entity
succeeding to substantially all the business and assets of Lessee, (3) any subsidiary,
affiliate or parent of Lessee, (4) any entity controlling, controlled by or under common
control with Lessee, or (5) any entity resulting from the reorganization of Lessee outside
of a bankruptcy organization.
12. Insolvency. In the event the Lessee is adjudicated bankrupt or insolvent,
or a Receiver or Trustee is appointed for the Lessee, either voluntarily or involuntarily,
or if the Lessee makes an assignment for the benefit of creditors, this Lease shall
immediately terminate without further action on the part of Lessor or Lessee.
Peninsula Feed Lease No. 055-12
Page 3 of 6
13. Waivers. One or more waivers of any covenants or conditions by Lessor
shall not be construed as a waiver of a subsequent breach of the same covenant or
condition or agreement.
14. Use of Premises. Lessee will use and occupy the Premises throughout
the entire term hereof for purpose of vehicular and pedestrian ingress, egress, parking,
merchandise display, and no other purpose. Lessee agrees not to violate any law,
ordinance, rule or regulations of any governmental authority having jurisdiction of the
Premises.
15. Condition of Premises. The premises are recognized by the lessor and
the Lessee to be in "as is" condition, with no warranties of any type or nature whatsoever
by the Lessor to the Lessee. The Lessor will not incur liability or injuries or property
damage suffered because of defects in the Premises at the time of renting or occurring
thereafter except as may be caused by breach of warranties expressly set forth herein or
Lessor's negligence or failure to perform the terms and conditions of this lease. The
Lessee hereby acknowledges that it has had ample opportunity to inspect the Premises.
16. Default. It is agreed that if Lessee shall abandon the Premises before the
end of the term, or if any rent shall be due and unpaid and such failure continues for ten
days after Lessee's receipt of notice describing Lessee's failure to pay such rent when
due, or if default is made of any of the covenants and agreements to be performed by
Lessee as set forth herein and such failure continues for thirty days after Lessee's receipt
of notice describing Lessee's failure, then the Lessor may, at its option, enter upon the
Premises and re -let the same for such rent and upon such terms as Lessor may see fit;
and if the full rental herein shall not be realized by Lessor over and above any expense to
Lessor in such re -letting, Lessee will pay all deficiency promptly upon demand, or the
Lessor may declare this Lease terminated and forfeited and take possession of the
Premises, and Lessee agrees to pay a reasonable attorney fee and the costs of any Court
action should it be necessary to enforce any of Lessor's remedies in this paragraph
contained if Lessor is the prevailing party. Lessor agrees to pay a reasonable attorney
fee and the costs of any Court action if Lessee should be the prevailing party.
17. Attorneys Fees and Court Costs. In the event that any suit, action, or
proceeding, including arbitration as hereinafter set forth, shall be instituted to enforce
compliance with any of the terms or conditions of this lease, there shall be paid to the
substantially prevailing party in such suit, action or proceeding, such sums as the court
or arbitrator may adjudge and determine to be a reasonable attorney's fee and
reasonable costs, with the foregoing applicable to proceedings both in the trial and
appellate court levels.
18. Arbitration. In the event that there is a dispute arising out of any of the
terms or conditions or the amount of rent payable as provided in this lease, said dispute
shall be referred to arbitration. The Lessor shall appoint an arbitrator and the Lessee
Peninsula Feed Lease No. 055-12
Page 4 of 6
shall appoint an arbitrator. The two arbitrators shall then select a third independent
arbitrator. The costs of the third arbitrator shall be divided equally between the Lessor
and the Lessee. The three arbitrators shall then resolve the dispute between the Lessor
and the Lessee by a majority thereof, and the decision shall be reduced to writing. Said
arbitration award may then be reduced to judgment by entry in the Kitsap County
Superior Court.
IN WITNESS WHEREOF, the parties hereto have signed and sealed this lease the
day and year first above written.
LESSOR:
CITY OF PORT ORCHARD
LESSEE:
PENINSULA FEED
By: a BY: r . ��✓Ds c "y
Timothy C. M tthes, Mayor Print Nam
216 Prospect Street Address. S
Port Orchard, WA 98366
36o-876-4407 Phone No. 0�
ATTEST:
6
Brandy Rinearson, CMC, City Clerk
STATE OF WASHINGTON)
) ss.
COUNTY OF KITSAP )
I certify that I know or have satisfactory evidence that Timothy C. Matthes and
Brandy Rinearson are the persons who appeared before me, and said persons
acknowledged that they signed this instrument, on oath, stated that they were
authorized to execute the instrument and acknowledged it as the Mayor and City Clerk
of the City of Port Orchard, respectively to be the free and voluntary act of such party for
the uses and purposes mentioned in the instrument.
DAI
d
�1OTARy
N�. PUBLIC
Notary Public and for the State of
Washington residing at P6,4 C r c Ir�F • tQ
My commission expires
Peninsula Feed Lease No. 055-12
Page 5 of 6
STATE OF WASHINGTON)
) ss.
COUNTY OF KITSAP )
I certify that I know or have satisfactory evidence that
1-M^ E7&&e° Z,/ is the person who appeared before me, and said
person acknowledged that he/she signed this instrument, on oath, stated that he/she
was authorized to execute t instrum nt and acknowledged it as the
AZ;Vezkt- of to be the free and
voluntary act of such party for the uses and purposed mentioned in the instrument.
DATED: /o2S�/�
Nota Public in and for the, State f
Washington residing at e�
My commission expires O
Peninsula Feed Lease No. 055-12
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