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003-72 - State of WA DNR - Contract,�-/ Y. y 0 )A STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES BERT L. COLE, Commissioner of Public Lands LEASE AND BOND OF HARBOR AREAS APPLICATION NO. HA 2242 STATE OF WASHINGTON, COUNTY OF THURSTON, ss. LEASE NO. HA 2242 THIS INDENTURE, Made this —mod_ day of June , A. D., 1972 , by and between the STATE OF WASHINGTON, party of the first part, Lessor, and Lessee CITY OF PORT ORCHARD part y__ of the second part, WITNESSETH, That the State of Washington, Lessor, does hereby lease, demise and let unto said part_ of the second part the following described harbor area, situate in the State of Washington, County of 1Citsa , to wlt: The harbor area lying in front of Blocks 12 and 13, Orchard, Frederick, and Sidney Streets, Sidney (now Port Orchard) Tide Lands, said Blocks 12 and 13 being in front of Blocks 12 and 13, Original Plat of Sidney, being bounded by the inner harbor line, a line running parallel with and 200 feet northerly of said inner harbor line, the west line of Orchard Street, and the east line of Sidney Street, both produced to and across the harbor area to said line running parallel with the inner harbor line, as shown on the official maps of Sidney (now Port Orchard) Tide Lands, on file in the office of the Commissioner of Public Lands at Olympia, Washington. Subject, however, to easements for rights of way for treatment plant and city street granted to the City of Port Orchard on November 24, 1961 and December 7, 1966 under Application Nos. 27367 and 315511, respectively. To have and to hold for the term of ten (10) years from the date of this instrument, for the purpose of building and maintaining upon the above described harbor area, wharves, docks and other structures for the convenience of navigation and commerce. This lease is executed in consideration of the covenants herein contained and of the payment annually in advance of the amount of $ 448.50 _ which represents six (6) per cent of the true value of $_ _7475.0p of the harbor area for the first five-year period of the ten (IQ) year lease in accordance with the provisions M of Chapter 97, Laws of 1969, lst Ex. Sess., as now existing or as hereafter amended. 0-176-1 The Department of Natural Resources, at the end of the first five (5) year period, from the date hereof and at the end of each subsequent five (5) year period of the lease term shall determine the true value in money of the herein described harbor area, exclusive of the improvements thereon unless the improvements are state owned in which case they shall be included, which value shall be the value at which the property would be taken in payment of a just debt from a solvent debtor and such valuation shall be utilized in the computation of rental for the five (5) year period following. The State of Washington shall have the right to regulate, either under rules established by the Department of Natural Resources, or by legislative enactment, or by both methods, maintenance and design requirements of all improvements, the rates of wharfage, dockage and other tolls, to be imposed by the Lessee upon commerce for any of the purposes for which said leased harbor area may be used, and to change such regula- tions and rates from time to time, and the right to prevent by such means and in such manner as it may adopt, extortion, discrimination, unequal or exclusive privileges, and to cancel this lease for the violation of any law, rule, regulation or order governing the same. The State of Washington shall have the power by the Department of Natural 4 Resources to terminate this lease upon a breach of any of its conditions by the Lessee or for the failure or refusal of the said Lessee to erect, within a reasonable time hereafter, and continuously to operate and maintain in and upon the above described harbor area the wharves, buildings or other structures described and represented in the exhibits of improvements proposed to be erected therein by said Lessee which have heretofore been filed with the Department of Natural Resources, or as altered with the consent and approval of said Department entered upon its' records. Upon expiration or termination of this lease without renewal or re -lease by the Lessee of any portion of the harbor area described herein containing improvements, all such improvements shall belong to the State. The State of Washington reserves unto itself, port district, county, city or other public agency in the territory where the portion of the harbor area described in this lease is located, the right to assume and thereafter hold this lease upon acquirement of the tidelands contiguous thereto and fronting thereon, without any value for said lease except for improvements thereon. 0-176-2 The Lessee shall not make or suffer to be made any artificial filling in of said leased area or any deposit of rock, earth, ballast, refuse, garbage or other matter within such area, except as provided by law or as approved in writing by the Department of Natural Resources. if the said Lessee shall fail to pay to the State the rental hereinbefore provided on the date when the same is due, or within sixty days thereafter, the Department of Natural Resources may declare this lease terminated and all rights or claims of the said Lessee under this lease in and to the said area or in or to any improvement therein or thereon, shall immediately thereupon vest in the State of Washington. The Lessee herein shall not sub -let or assign the whole or any part of said leased area except upon the written permission of the Department of Natural Resources. All the conditions and covenants set forth in this indenture are declared to be of the essence of the contract, and a breach of any one is a breach of the whole. Executed in duplicate this day of - r,r f A. D., 19 STATE OF WASHINGTON DEPARTMENT) OF NATURAL RESOURCES By PERTA. COLE Commissioner of Public Lands Administrator CITY OF PORT ORCHARD B By _. Lessee P. 0. Address P. 0. Box 186 Port Orchard, WA 98366 App. No. 2242 1C 0-176-3