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043-08 - Resolution - Contract with Quisenberry Property Management for Lease of City PropertyRESOLUTION NO. 043-08 A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON, AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT WITH QUISENBERRY PROPERTY MANAGEMENT COMPANY FOR THE LE..!I.SE OF CITY-OWNED REAL PROPERTY WHEREAS, the City owns real property on Bay Street, west of Blackjack Creek, as more particularly described in the lease agreement attached as Exhibit A hereto (hereinafter the Premises); and WHEREAS, in 1998 the City leased the Premises to Quisenberry Property Management Company (Quisenberry) for a ten year term, which lease expires on September 30, 2008; and WHEREAS, the City and Quisenberry desire to enter into a new lease of the Premises subject to the terms and conditions set forth in the lease agreement attached as Exhibit A hereto; now, therefore; THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: THAT: The Mayor is authorized to execute a lease agreement with Quisenberry Property Management Company in the form attached hereto as Exhibit A. Exhibit A Attachment to Resolution No. 043-08 City of Port Orchard 216 Prospect Street Port Orchard, WA 98366 LEASE AGREEMENT by and between City of Port Orchard and Quisenberry Property Management Company Public Right of Way: No Tax Parcel Number Assigned Legal Description: Ful! Legal Description; SW l4i, SW l4i, Section 25, Township 24 N, Range 1 East Exhibit "A" LEASE AGREEMENT made and entered into as of the first day of October 2008, by and between the CITY OF PORT ORCHARD, a washington municipal corporation (hereina~er "Landlord'), and QUISENBERRY PROPERTY MANAGEMENT COMPANY, a Washington general partnership (hereinafter "Tenant"). WITNESSETH: WHEREAS, Landlord is the owner of that certain real property in Kitsap County, Washington, commonly known as Maple Street Waterway, Port Orchard, Washington, and a portion of, which is legally described set forth on attached Exhibit "A" (hereinafter the "Premises"). WHEREAS, Tenant desires to lease the Premises from Landlord and Landlord is willing to lease the Premises to Tenant upon the tenns, conditions and provisions set forth below. NOW, THEREFORE, for and in consideration of the mutual covenants and promises set fotih below, the mutual benefits to be derived heretrom, and other good and valuable consideration, the parties hereto agree as follows; (1) LEASE OF PREMISES: Landlord hereby leases to Tenant, and Tenant leases from Landlord, the Premises, a!l upon the 1erms set forth below. (2) TERM: (a) The term of this lease shall be for a period of five (5) years, commencing on the 1st day of October 2008 and ending on the 30th day of September 2013. (b) Subject to the Landlord's consent, which consent may be withheld for any reason. Tenant shalt have three five (5) year options to renew. If Tenant intends to exercise said option, Tenant shall provide Landlord with notice of intent to renew the lease not less than 90 days prior to the expiration of the lease term. City of Port Orchard /Quisenberry Lease Agreement Page i of 10 following: (3) RENTAL: The Tenant shali pay to the Landlord as rental of the lease premises the (a) The r:mnual rent shall be an amount equal to the product of $0.68571429 tlmes the square footage of the Premises_ The Promises are agreed to be 26,250 square feet in area for purposes of this !ease. The annual rental lor the initial five-year period of this lease (October 1. 2008-September 30, 2013 is $~8,000.00, which sharl be payable in 12 monthly installments ol $1 ,500.00. ' (b} All rentals shall be payable in advance, '1n \awful money of the United States. (c) The monthly rent shall be due on or before the first day of October and on the first day of each succeeding month during the term hereof. (d) ln the event tl1e parties agree to exercise the feaso option described in paragraph 2(b) above, the annual rent for each five-year option period shall be increased on the first day of October of the option period based on the increase in the Consumer Price lndex · Urban for the Seattle-Tacoma-Bremerton Area (the Index). The rent payable shall be increased by the percentage that the Index published for the date nearest preceding the adjustment date has increased over the Index published for the dale nearest the first day of the prior lease term from which the adjustment is being measured. For example, the rent for the first opt-ion period shall increase in an amount equal to the percentage increase to the Index as published on the date nearest to October 1, 2013 as compared to the Index as publ'lshed on H1e date nearest to October 1, 2008. Provided, in no event shall the rent be less than the prior !ease term. {el !n the event Tenant shall fail to make any payment when due, there shall be a late payment penalty of an amount equal to 3°/o of the amount of rental payment then due for Bach such delinquent payment. ln addition thereto, interest shall accrue on any amounts due and owing to Landlord under this lease at the rate of 1 °/o per month (i 2% annually). (t) ln addition to the rental amount, the Tenant will be responsible to pay real estate taxes and assessments related to the Premises, if any, and any leasehold tax assodated therewith before delinquency. The leasehold tax rate is currently 12.84'% but rnay be subject to change during the term of thfs lease. Tenant shall pay such amount(s) within thi1iy (30) days of its due date. (4) USE OF PREMISES: (a) The Tenant shall use the premises for a car sales lot and uses commonly associated thet'ewlth. Tenant shall at all times comply with all local, state and federal iaw.s, rules and regulations applicable to the Premises, and hold harmless, defend and indemnify Landlord from claims relating to noncomp!lance. lt is specifically understood and agreed that Tenant shall not construct, install or maintain on the Premises any buildings, structures, foundations or other improvements without the prior written consent ot Landlord. (b) This lease shall terminate in the event Tenant no longer uses the Premises for a car sales !ot and uses commonly associated therewith. (5) OBLIGATION OF TENANT: During the term of this lease Tenant shall: {a) Keep the Premises in a neat, clean, and sanitary condition and refrain from the commission of any waste thereon; (b) Properly dispose of all rubbish, garbage, and waste in a clean and sanitary manner at reasonable and regular intervals and assume-al! costs of extermination and fumtgation for any infestation: (c) Not intentionally or negfigently destroy, deface, damage, impair, or remove any part of the Premises. City of Port Orchard /Quisenberry Lease Agreement Page 2 of 10 (d) Not permit any nuisance or common waste on the Premises. (6) HAZARDOUS MATERIALS: (a) Compliance. Tenant shall: (i) Comply with aH Hazardous Materials Laws relating to any hazardous or toxic substance, material or waste, including but not limited to, those substances, materials, and wastes listed in the State Model Taxies Control Act, the United States Department of Transportation Hazardous Material Table (49 C.F.R. 172.101) or by the United States Environmentai Protection Agency as hazardous substances (40 C.FR Part 302 and amendments thereto), petroleum products and their derivatives, and such other substances, materials, and wastes as become regulated or subject to cleanup authority under any State or Federal Environmental Laws; (ii) Without limiting the generality of subsection {a), not install, use, generate, manufacture, store, release or dispose of, nor permit the installation, use generation, manufacture, storage, release or disposal of Hazardous Material on, under or about 1he Premises nor transport nor permit the transportation of Hazardous Material to or from tlle Premises; {iii) Submit during the term of the Lease, if requested by Landlord, at its own expense, a report or reports, satisfactory to Landlord in its sole and absolute discretion, prepared by a consultant or consultants approved by Landlord, certify"mg that the Premises are not then being used nor has been used in the past 1or any activities involving, directly or indirectly, the installation, use, generation, manufacture, storage, release or disposal of any Hazardous Material; {lv) Immediately advise Landlord in wriUng of: Any and all Hazardous Material Claims; (A) (B) the Premise: The presence of any Hazardous Material on, under or about (C) Any remedial action taken by Tenant in response to any Hazardous Material on, under or about the Premises or to any Hazardous Material Claims: (D) Tenant's discovery of the presence of any Hazardous Material on, under or about any real property adjoining or in the vicinity of the Premises; and (E) Tenant's discovery of a.ny occurrence or condition on any real property adjoining or in the vicinity of the Premises that could cause the Premises or any part thereof to result in any liability or claims under Hazardous Material Laws, or any regulation adopted in accordance therewith, or to be otherwise subject to any restrictions on the ownership, occupancy, transterabllity or use of the Premises under any Hazardous Material Laws; and (v} Provide Landlord with copies of aH reports, analyses, notices, licenses, approvals, orders, correspondences or .other written materials relating to the environmental cond"1tlon of the Premises or any Hazardous Material Claims immediately upon receipt, completion or delivery of such materials; (vi) Premises; Not install or allow to be installed any underground tanks on the (vii) Not create or permit to continue in existence any lien upon the Premises imposed pursuant to any Hazardous Material Laws; City of Port Orchard /Ou"1senberry Lease Agreement Page 3 of 10 • (viii) Not change or alter the present use of the Premises unless Tenant shall have notified Landlord thereof fn writing and Landlord shall have determined, in its sole and absolute discretion, that such change or modification will not result in the presence of any Hazardous Materia! on the Premises in such a level that would increase the potential liability for any Hazardous Material Claims. (b) Redemption. Tenant shalf promptly take any and al! necessary action for Remedial Work ("Remedial Work") in response to any Hazardous Material Claims or the installation, use, generation, manufacture, storage, release, or disposal of any Hazardous Material on, under or about the Premises. The Remedial Work shall be conducted: (i) In a diligent and timely fashion by licensed contractors acting under the supervision of a consulting environmental engineer; (ii) any public or approval; Pursuant to a detailed written plan for the Remedial Work approved by private agencies or persons with a legal or contractual right to such {iif} With such insurance coverage petiaining to liabilities arising out of the Remedial Work as is then customarily maintained with respect to such activities; and (iv) Only following receipt of any required permits, licenses or approvals. The selection of the Remedial Work contractors and consu!ting environmental engineer, the contracts entered into with such parties, any disclosures to or agreements w\th any public or private agencies or parties relating to Remedial Work and the written plan for the Remedial Work (and changes thereto) each shall, at Landlord's option, be subject to Landlord's prior written approval, which approval shall not be unreasonably withheld or delayed. In addition, Tenant shaH submit to Landlord, promptly upon receipt or preparation, copies of any and all reports, stud'1es, analyses, correspondence, or governmental comments Remedial Work contracts and approvals, proposed removal or other similar information in connection with any Remedial Work or Hazardous Material relating to the Premises. AI! costs and expenses of such Remedial Work shall be paid by Tenant, including, without limitation, the charges of the Remedial Work contractors and the consulting environmental engineer, any taxes or penalties assessed in connection with the Remedial Work and Landlord's reasonable fees and costs incurred in connection with monitoring or review of such Remedial Work. Landlord shall have the right but no obligation to join and participate in, as a party if it so elects, any legal proceedings or actions initiated in connection with any Hazardous Material Claims. (c) Defense. Tenant shall defend (witll counsel approved by Landlord), fully indemnify, and hold Landlord entirely free and harmless from and against ail claims, judgments, damages, penalties, fines, costs, liabilities, or losses (including, without timltation, sums paid ln settlement of claims, attorneys, fees, consultant fees, and expert fees) that are imposed on, paid by, or asserted against Landlord or Landlord's successors and assigns, by reason or on account of, or in connection with, or arising out of the presence or suspected presence of Hazardous Material in the soil, groundwater, or soft vapor on or about the Premises, (7) ASSIGNMENT AND SUBLETTING: (a) Restriction, Tenant shalf not, without the prior written consent of Landlord: (i) Voluntarily, involuntarily, or by opera!lon of law, assign, transfer, mortgage, pledge, hypothecate or otherwise encumber this lease, or any interest in it, or any right or privilege appurtenant to it; (ii) Sublet all or any part ol the Premises; or (iii) Allow any other person, except the employees, agents, customers, and invitees of Tenant, to occupy or use any portion of the Premises in the normal course of business. City of Po1i Orchard /Quisenberry Lease Agreement Page 4 of 10 Any assignment, transfer, encumbrance, subletting, or use without Landlord's consent shaJl be void and shall, at the option of Landlord, constitute a material default under this !ease. (b) Included Transfers. If Tenant is a corporation, any transfer of this lease by merger, consolldation, reorganization, or dissolution shaH constltute a transfer for the purposes of this Section. If Tenant is a corporation, any change in the ownership of, or power to vote, a percentage oi Tenant's now outstanding stock which results in a change of controlling persons, or any transfer of all or substantially all the assets of Tenant shall constitute a transfer for the purposes of this Section. ll Tenant is a partnership, any partial or total withdrawal of any of the present general partners, and any transfer by a general partner of all or part of h!s partnership ·Interest shall constitute a transfer for the purposes of this Section; except that this restriction shall not apply if such partnership interest passes upon death to the spouse or linea! descendants of a deceased partner. (c) Judicially Imposed Assignment If the nonassignment provisions of this Section are deemed to be unenforceable in any bankruptcy proceeding, Landlord and Tenant agree that a showing of adequate assurance of future performance by a prospective assignee of this lease must include, without limitation, clear and convincing evidence that: (i) Landlord wilt receive the full benefit of each and every term of lts bargain in this !ease, except for the nonassignment and related termination clauses; (ii) The Premises will continue to be used solely for the use permitted by this lease; and (iii) The prospective assignee has the means, expertise, and experience to operate the business to be conducted upon the Premises in a first-class manner. (d) Assignment bv Landlord. If Landlord shall assign its interest under this lease or transfer its interest in the Premises, Landlord shall be relieved of any obligation accruing hereunder after such assignment or transfer, and such transferee shall thereafter be deemed to be the Landlord under this !ease. (8) REPAIRS AND MAINTENANCE: Tenant shall, at Tenant's sole cost and expense, keep in good condition and repair a\! portions of the Premises. Tenant shall deliver possession of the Premises to the Landlord upon the termination of this lease in a condition equal to or better than as of the effective date of this lease. (9) DIRECT OPERATING EXPENSES OF TENANT: (a) Insurance procured by Tenant. Throughout the lease Term and any other pertod(s) of occupancy of the Premises by Tenant, Tenant shall, at Tenant's expense, obtain and maintain the following insurance policies, naming as additional insured the Landlord: A commercial general liability insurance policy providing coverage lor bodily injury liability, property damage liability and personal injury liability with minimum limits of not less than $1,000,000 Combined Single Limit per accident and $2,000,000 General Aggregate. Such insurance policies shaf! include Blanket Contractual LiabHity and owners and Contractors Protective endorsements. Landlord may increase or decrease the required limit as it deems necessary based upon periodic insurance reviews. The insurance required by this Section shall be on an occurrence basis, and underwritten by an acceptable insurer licensed to do business in the State of Washington, if Tenant is unable to obtain this insurance on an occurrence basis, it may be on a claims made basis provided that, in addition, Tenant, at Tenant's expense, obtains an owner's protective policy, issued in the name of Landlord only, which is on an occurrence basis for the limits required by this section 10(a). All insurance provided for herein shall be effected under standard form policies issued by insurers of recognfzed responsibillty and which are acceptable to the Landlord. The Tenant shall provide Landlord with proof of such insurance policies acceptable to the Landlord. The Tenant shall pay all premiums therefor at least 30 days prior to expiration thereof and provide Landlord with proof of such payment. The Tenant shall, at all times, abide by the terms of the applicable po!icy(s) so as to be in good standing with City ot Port Orchard /Quisenberry Lease Agreement Page 5 of 10 such insurers. In the event Landlord receives notice of cancellation., Landlord may pay such premium or otherv<~ise effectuate similar coverage, and any amount so paid by Landlord shall be due from Tenant as additional rent on demand from Landlord, plus interest thereon at the rate of 12% per annum until paid in lull. (b) Personal PropertvTaxes. Tenant shaH pay, before delinquency, any and all taxes lev'led or assessed and payable during the lease term upon aH Tenant's equipment, furniture, fixtures, and any other perso!j.al property located on the Premises. (c) Licenses and Taxes. Tenant shall be tiable for, and shall pay throughout the Lease Term, all license and exc'ise fees and occupation taxes covering the business conducted on the Premises. If any governmental authority or unit under any present or future taw effective at any tlme during the Lease Term shall in any manner levy a tax on rents payable under this Lease or rents accruing from use ot the use of the Premises or a tax in any form against Landlord because of, or measured by, income derived from the leasing or rental of said prope1ty, such tax shall be paid by Tenant, either directly or through Landlord, and upon Tenant's default therein, Landlord shall have the same remedies as upon failure to pay Rent. (10) RIGHT OF INSPECTION: The Landlord, or its agents and representatives, shall have the right at any and all reasonable times during normal business hours and upon giving Tenant reasonable notice, except in the case of emergency, to enter into or upon the Premises, or any part thereof, tor the purpose of examining the condition thereof, or for any other !av.rful purpose. (11) LIENS: The Tenant shall not permit any lien or any other type of encumbrance to be placed on or imposed upon the Premises without the express, prior written consent of the Landlord. (12) CONDEMNATION: If the whole of the Premises, or such portion thereof as will make the Premises unsuitable for the purposes herein !eased and the uses to which said Premises are being made, is condemned, or transferred under threat of condemnation, for any public use or purpose by any legally constituted authority, then in either of such events the lease shall cease from the time when possession is taken by such public authority and the rental shall be prorated between the parties hereto as of the date of the surrender of possession. ff only a portion of the Premises are so taken such that the Premises can continue to be used for Tenant's purposes hereunder, this lease shall continue in full. force and effect but rent shaH be adjusted to reffect any diminution of the Premises' value to Tenant Landlord shall be entitled to the entire condemnation award except as to such amount that Tenant may separately negotiate or be entitled to receive ft'om such condemning authority. (13) ALTERATIONS: The Tenant shall not make any alterations to the Premises without the express, prior written consent of the Landlord, which consent shall not be unreasonably withheld. The alterations shail become the property of the Landlord upon the termination of this lease (except trade fixtures and equipment which may be removed by Tenant at its own cost and expense, and Tenant agrees to an-d shall make any repairs to the Premises necessitated by the removal of the same). If the Tenant intends to make changes in the Premises, Tenant shaH submit plans to the Landlord, not less than 30 days before the commencement of such changes. Such plans shall become the property of Landlord. Any such alterations shall be made pursuant to any and all applicable codes or regulations of the governmental authorities having jurisdiction over the same and Tenant shall secure the appropriate permits and approvals therefor, all at Tenant's sole cost and expense. (14) RIGHTS AND REMEDIES OF THE PARTIES: In the event that the Tenant shall, at any time, be in default in the payment of rent as herein required, or the payment or performance of any of its other obrigations under this lease, and the Tenant shall fail to remedy such matters within ten (10} days following the mai!'ing of wr'itten notice from the Landlord to the Tenant, or In the event that the Tenant shall be adjudged a bankrupt, or shari make an assignment for the benefit o1 creditors or in the event that a receiver of any property of the Tenant in or about the Premises involved herein shall be attached in any action, suit, or other proceeding, or in the event that the tnterests of the Tenant in the Premises shall be sotd under execution or other legal process, it shall be lawful for the Landlord to enter upon the Premises and again have, repossess, and enjoy the said Premises as if this lease had not been made, and thereupon this lease and everything herein requlred to be done or performed by the Landlord shalf cease and terminate. without prejudice, however, to the right of the Landlord to recover from the Tenant all rents and obligations due and owing to the lime of such entry. in addition, fn the event of any such default by the Tenant. and such subsequent re-ent!y by the Landlord, the Landlord shaH have the right to relet the Premises involved herein for the remainder of the term hereof, and any extensions hereof, and shall have the right to recover from the Tenant any deflc\ency between the amount so obtained and that which would have been obtained had the Tenant fulfilled its obfigations hereunder. The remedies herein provided shall be cumulative and shall be in City of Port Orchard /Quisenberry Lease Agreement Page 6 ol10 addition to any and all other remedies available to the Landlord in Jaw or in equity. In no event shan this lease be considered an asset of Tenant in any bankruptcy or other insolvency proceeding. (15) CONDITION OF PREMISES: The Premises are recognized by the Landlord and the Tenant to be in "as is" condition, with no warranties of any type or nature whatsoever by the Landlord to the Tenant. The Landlord will not incur liability or injuries or property damage suffered because of detects 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 Landlord's negligence or failure to periorm the terms and conditions of this lease. The Tenant hereby acknowledges that it has had ample oppotiunity to inspect the Premises. (16) ATTORNEY'S 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. (17) HOI.D HARMLESS AND INDEMIFICATION: In consideration of Landlord entering into this lease agreement with the Tenant, the Tenant agrees to and shall hold the Landlord and its council members, employees, agents and representatives harmless from any and all claims of liability or damages and to defend and indemnity said pa1iies for any losses sustained by them from such claims of !lability or damages, from any source or sources ar!s'1ng out of or connected with the Tenant's or the employees, agent's, representatives, customer's, licensee's, or invftee's use and occupation of the Premises, except as may be caused by Landlord's own negligence. (18) ARBITRATION: In the event that there is a dispute arising out ol any olthe terms or conditions or the amount of rent payable as provided in this lease, said dlspute shall be referred to arbitration. The Landlord shall appoint an arbitrator and the Tenant shaH appo'1nt an arbitrator. The two arbitrators shaH then select a third independent arbitrator. The costs of the third arbitrator shall be divided equally between the Landlord and the Tenant The three arbitrators shall then resolve the dispute between the Landlord and the Tenant by a majority thereof and the decision shaH be reduced to writing. Said arbitration award may then be reduced to Judgment by entry in the Kitsap County Superior Court. (19) HOLDING OVER: In the event that the Tenant, for any reason, shal! hold over in possession of the Premises following the exptration of this lease, or any extensjons hereof, such holding over shall not be deemed to operate as a renewal or extension of this Lease, but shari only create a tenancy from month-to- month which may be terminated at wiH at any time by the Landlord. (20) NOTICES: All written notice required to be given hereunder shal! be personally served or sent by certified mail, return receipt requested, postage prepaid, to the Landlord at: City Clerk, City of Port Orchard, 216 Prospect, Port Orchard, Washington 98366; and shall be personally served or sent by certified mail, return receipt requested, postage prepaid, to the Tenant at , or to such other addresses as the parties may hereinafter designate in writing to the other from time to time hereafter. (21) REMOVAL OF PERSONAL PROPERTY: Upon the termination of !his lease, the Tenant shall promptly remove all personal property. trade fixtures, and equipment 1nstalled by it. Further. the Tenant shall repair any and all damage occasioned by such removaL (22) COVENANT OF QUIET ENJOYMENT: The Tenant, upon the payment of the rent herein reserved and upon the pertormance of the terms and covenants ot this \ease, shall at all tlmes during the lease term, and during any extension or renewal term, peaceably and quietly enjoy the leased Premises without any disturbance from the Landlord or from any other person claiming through the Landlord. Landlord covenants and warrants that it has the right, title, and authority to enter into this lease with the Tenant. !t is understood and agreed that the original City of Port Orchard /QUisenberry Lease Agreement Page 7 of iO of this Lease Agreement shall not be recorded but a memorandum thereof may be recorded with the Kitsap County Auditor, at the opt:on and expense of the party. (23) WAIVER: The failure of the Landlord to strictly enforce any of !he terms or conditions of this !ease, or to exercise any option herein conferred upon it in any one or more instances, shall not be construed so as to constitute a waiver or relinquishment of any of its rights hereunder. (24) GOVERNING LAW: The place of making of this lease shall be deemed to be Port Orchard, Kitsap County, Washington, and the legal rights and obligations of the Landlord and the Tenant shaH be determined by the !a\.VS of the State of Washington. (25) JURISDICTION AND VENUE: In the event any suit, action or proceeding shall be brought in connection with any of the terms or conditions of this lease, the Landlord and the Tenant hereby stipulate that jurisdiction and venue of such suit, action or proceeding shall be in Kitsap County. (26) HEIRS AND ASSIGNS: All rights, remedies, and liabilitres herein given to or imposed upon the Landlord and the Tenant sha!l extend to, insure to the benefit of, and bind, as the circumstances may require, the heirs, executors, administrators, successors, and, so far as this lease is assignable by the terms hereof, to the assigns of the Landlord and tl1e Tenant (27) SEVERABILITY: in the event tl1at any section, or any part of any section, of this lease shall be declared invalid by a court of competent jurisdiction said holding shall have no effect upon the remaining section of thls le-ase, which remain in full force and effect. (28) ENTIRETY: The lease constitutes tho entire agreement and understanding between the Landlord and the Tenant There are no other agreements or representations, either written or oral, which modify or have any effect upon this lease. IN WITNESS WHEREOF, this document has been duly executed by the parties hereto, to be effective as of the day and year first above written. LANDLORD: TENANT: STATE OF WASHINGTON ) I SS, COUNTY OF KITSAP ) ' .... ,J.; .__-,:~ I On this ____l:?~day of ,,.__ .. ?fd!:;JT(,v,./1).{/,.. 2008, before me, the undersigned, a Notary Public in and for the State of Washington, dUly commissioned and sworn, personally appeared Lary Coppola and Patricia J. Kirkpatrick to me known to be the Mayor and City Cferk of the City of Port Orchard, a Washington municipal City of Port Orchard /Quisenberry Lease Agreement Page 8 of 10 corporation, and that he/she executed the foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of the said municipal corporation, for the uses and purposes mentioned, and on oath stated that he/she is authorized to execute the said instrument on behalf of said municipal corporation. WlcfNESS my hand and official seal hereto affixed the day and year first above written. ;/'~~j,J-I ~ {B/~\).cc-f (7' ~"\ •'[~" _....-- STATE OF WASHINGTON I ISS, COUNTY OF KITSAP I On this day of 2008, before rne, the undersigned, a Notary Public in and for the State of Washington, duly commissioned and sworn, personally appeared -:;cr;::c:-::-:c;:-:ccc:-;;-::-:c=:-;c=c:c:-=-:-::: and to me known to be the general partners of Quisenberry Property Management Company, a Washington genera! partnership, and that he/she/they executed the foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of the said partnership, for the uses and purposes therein mentioned, and on oath stated that he/she/they is/are authorized to execute the said instrument on behalf of said partnership, WITNESS my hand and official seal hereto atfixed the day and year first above written, City of Port Orchard /Quisenberry Lease Agreement NOTARY PUBLIC in and for the State of Washington Residing at=-,--c-:=-c-- My commission expires: _______ _ Print Name: _________ _ Page 9 of 10 EXHIBIT "A" CITY OF PORT ORCHARD/QUISENBERRY LEASE LEGAL DESCRIPTION Located T 24 N. IE, W.M. Section 25, SW 1/4, SW 1/4, laying West of BlackJack Creek with dimension of 75.00 feet wide x 350.00 feet long more or less. Square footage shall be consldered to start from the low water toe of rip rap adjacent to BlackJack Creek, West to the East property line of Quisenberry Bay Ford Motors, and South from the North toe of rip rap on Sinclair lnlet to the North right of way !ine of S.R. 166. City ot Port Orchard /Quisenberry Lease Agreement Page 10 ot 10