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HomeMy WebLinkAboutNorth Mason Fire AuthorityLEASE AGREEMENT Between NORTH MASON FIRE AUTHORITY And MASON COUNTY THIS LEASE entered into on the 18th day of July, 2023, by and between NORTH MASON FIRE AUTHORITY, hereinafter called "Lessor" and Mason County hereinafter called "Lessee": WITNESSETH: 1. PREMISES: Lessor does hereby lease to Lessee, those certain premises located at 490 NE Old Belfair Highway, Belfair, WA 98528, hereinafter called "premises". 2. TERM: The term of this lease shall be for TEN (10) years commencing on the 1st day of August, 2023 and shall terminate on the 1st day of August 2033, unless the Lessee exercises an option to renew the Lease. Lessee will have the option to terminate this lease agreement at any time by providing the Lessor with a 365 day advanced notice of intention to terminate the lease. Lessee shall be entitled to one five (5) year option. The Lessee must notify the Lessor sixty (60) days prior to the expiration of this Lease, in writing, if it intends to exercise the option. 3. RENT: Lessee covenants and agrees to pay Lessor monthly rent in the amount of TWO THOUSAND dollars ($2,000.00). Rent is to be paid in advance on the 5th day of each month of the Lease. Any rental payments received eleven (11) or more days after the beginning date of each rental period will be subject to a service charge of FIFTY dollars ($50.00). If no satisfactory rental agreement can be reached prior to the beginning of the option period, then this Lease shall not be renewed. Lessee will make necessary improvements to accommodate occupancy of County Offices and Departments utilizing the facility. During the period of initial construction of these necessary improvements the Lessor agrees to forgo the monthly rental payments described above for a period not to exceed 24 months (2 years). 4. UTILITIES AND FEES: Lessee agrees to pay all charges for lights, heat, water, sewer, garbage and all other utilities and services to the leased premises during the full term of this Lease. Lessee agrees to pay any telephone and computer charges. All other items including all license fees and other governmental charges levied on the operation of Lessee's business on the premises will be paid directly by Lessee. 5. REPAIRS AND MAINTENANCE: Lessee shall, at its own expense and at all times, keep the premises neat, clean and in a sanitary condition, and keep and use the premises in accordance with applicable laws, ordinances, rules, regulations and requirements of governmental authorities. Lessee shall not intentionally or negligently permit waste, damage or injury to the premises. Lessee shall keep all drain pipes free and open and protect water, heating, and other pipes to prevent freezing or clogging. Lessee will cover costs for all premises maintenance and repairs with the exception of major structural repairs. Lessee shall make such repairs as necessary to maintain the premises in good Page 1 of 5 J:\CONTRACTS\Lease\Lease with North Mason Fire Authority final.docx condition, reasonable use and wear and damage by fire and other casualty excepted, as of the date of the commencement of this Lease. Any damage or repairs that are the result of the Lessee's negligent or intentional acts shall be the sole responsibility of the Lessee. The Lessor shall, at its sole cost and expense, make any and all additions, repairs, alterations, maintenance, replacement, or changes to the Property or any improvements to its own cost subject to the provisions in section 7. 6. SIGNS: All signs or symbols placed by Lessee in the windows and doors of the premises, or upon any exterior part of the building shall be subject to Lessor's prior written approval, which shall not be unreasonably withheld. Lessor may demand the removal of unreasonable signs which are not so approved, and Lessee's failure to comply with said request within forty-eight (48) hours will constitute a breach of this paragraph and will entitle Lessor to terminate this Lease or, in lieu thereof, to cause the sign to the removed and the building repaired at the sole expense of the Lessee. At the termination of this Lease, Lessee will remove all signs placed upon the premises, and will repair any damage caused by such removal. All signs must comply with sign ordinances or be placed in accordance with required permits. 7. ALTERATIONS: With prior written consent of the Lessor, which shall not be unreasonably withheld, Lessee may make alterations, additions and improvements to said premises, at Lessee's sole cost and expense. The Lessee will be responsible for all costs for all alterations or improvements that may be required by current and/or future regulatory compliance for Lessee's intended use of the premises. and improvement In the performance of such work, Lessee agrees to comply with all laws, ordinances, rules and regulations of any property public authority, and to save Lessor harmless from damage, loss or expense. Lessee will make necessary improvements to accommodate occupancy of County Offices and Departments utilizing the facility. During the period of initial construction of these necessary improvements the Lessor agrees to forgo the monthly rental payments described in section 3 above. 8. LIENS AND INSOLVENCY: Lessee shall keep the premises free from any liens arising out of any work performed for, materials furnished to, or obligations incurred by Lessee and shall hold Lessor harmless against the same. In the event Lessee becomes insolvent, bankrupt, or if a receiver, assignee or other liquidating officer is appointed for the business of Lessee, Lessor may cancel this Lease at its option. 9. ACCESS: With three (3) business days prior notice, Lessor shall have the right to enter the premises at all reasonable times for the purpose of inspection or of making repairs, additions or alterations, and to show the premises to prospective tenants for sixty (60) days prior to the expiration of the Lease term. The Lessee agrees to provide the Lessor a key for the purpose of emergency inspection and access only. 10. POSSESSION: If for any reason Lessor is unable to deliver possession of the premises at the commencement of the term of the Lease, Lessee may give Lessor written notice of its intention to cancel this Lease if possession is not delivered within thirty (30) days after receipt of such notice by Lessor. Page 2 of 5 J:\CONTRACTS\Lease\Lease with North Mason Fire Authority final.docx 11. INTERFERENCE. Lessor shall not use, nor shall Lessor permit its tenants or Lessees to use, any portion of the Premises or Building in any way that interferes with the operations of Lessee. Such interference shall be deemed a material breach by Lessor, and Lessor shall have the responsibility to promptly cause any such interference to be eliminated. If said interference cannot be eliminated within twenty-four (24) hours after receipt of notice that such interference is occurring, Lessor shall discontinue or cause to be discontinued the operation of any equipment causing the interference until the same can be corrected, except for such intermittent operation as may be necessary for the purposes of testing, after action has been taken for the purposes of correcting such interference. In the event any such interference does not cease promptly, Lessee shall have the right, in addition to any other right that it may have at law or in equity, to enjoin such interference or to terminate this Lease. 12. MUTUAL INDEMNIFICATION: Lessee shall indemnify and hold Lessor harmless from and against any loss, damage, or injury caused by, or on behalf of, or through the fault of the Lessee. Lessor shall indemnify and hold Lessee harmless from and against any loss, damage, or injury caused by, or on behalf of, or through the fault of the Lessor. Nothing in this Article shall require a party to indemnify the other party against such other party's own willful or negligent misconduct. "PROVIDED that Lessee specifically releases Lessor from any claim for loss, damage or injury suffered by Lessee or Lessee's agents or employees while occupying the Premises, excepting only claims arising from the willful or grossly negligent conduct of Lessor. Lessee shall further indemnify and hold Lessor harmless from and against any claim for loss, damage or injury suffered by any employee or agent of Lessee while occupying the rooftop space or exercising rights of access thereto pursuant to this agreement and solely to the extent of such claims Lessee waives its immunity under the industrial insurance laws (RCW Title 51)." 13. INSURANCE: During the term of this Lease and any extension thereof, the Lessor shall maintain a policy of casualty insurance covering the amount of the replacement cost of Lessor's property demised herein to Lessee, for damage from fire, earthquake and other perils. Said insurance policy shall also insure the replacement value of any personal property owned by the Lessor that is located on the Property. The proceeds on a claim against said insurance policy for damage shall be used to repair damage to the building of insured and to repair or replace any damaged personal property provided by the Lessor. The Lessee shall be responsible for maintaining its own casualty insurance on Lessee owned personal property and leasehold improvements placed within the Property by the Lessee. The Lessee shall procure and maintain for the duration of the Lease, a policy or policies of insurance, or have evidence of coverage through a self -insured risk pool, against claims for injuries to persons or damage to property that may arise from or in connection with this Lease by the Lessee, its agents, representatives, or employees consistent with the requirements in this Lease. Such insurance shall name the Lessor and its officers and employees as a Certificate Holder. Proof of such insurance shall be delivered to the Lessor prior to occupancy. Page 3of5 J:\CONTRACTS\Lease\Lease with North Mason Fire Authority final.docx 14. FIRE EXTINGUISHERS: Lessee agrees to maintain an adequate number of fire extinguishers on the premises. Lessee further agrees to have fire extinguishers regularly inspected by an approved fire extinguisher representative, at the sole cost of the Lessee. 15. DEFAULT AND RE-ENTRY: If Lessee shall fail to keep and perform any of the covenants and agreements herein contained, other than the payment of rent, and such failure continues for thirty (30) days after written notice from Lessor, unless appropriate action has been taken by Lessee in good faith, to cure such failure, Lessor may terminate this Lease and re-enter the premises, or Lessor may, without terminating this Lease, re-enter said premises, and sublet the whole or any part thereof for the account of the Lessee upon as favorable terms and conditions as the market will allow, for the balance of the term of this Lease and Lessee covenants and agrees to pay to Lessor any deficiency arising from a re -letting of the premises at a lesser amount than herein agreed to. Lessee shall pay such deficiency each month as the amount thereof is ascertained by Lessor. However, the ability of Lessor to re-enter and sublet shall not impose upon Lessor an obligation to do so. 16. REMOVAL OF PROPERTY: In the event Lessor lawfully re-enters the premises as provided herein, Lessor shall have the right, but not the obligation, to remove all the personal property located therein, and to place such property in storage at the expense and risk of Lessee. 17. COSTS AND ATTORNEY'S FEES: If, by reason of any default or breach on the part of either party in the performance of any of the provisions of this Lease, a legal action is instituted, the losing party agrees to pay all reasonable costs and reasonable attorney's fees in connection therewith. The parties herein agree that the Mason County Superior Court shall have jurisdiction and venue over this Lease and all matters arising under this Lease. 18. NO WAIVER OR COVENANTS: Any waiver by either party of any breach hereof by the other shall not be considered a waiver of any future similar breach. This Lease contains all the agreements between the parties, and there shall be no modification of the agreements contained herein except by written agreement. 19. SURRENDER OF PREMISES: Lessee agrees, upon termination of this Lease, to peacefully quit and surrender the premises without notice, leave the premises neat and clean (less any ordinary wear and tear) and to deliver all keys to the premises to Lessor. 20. HOLDING OVER: If Lessee, with the implied or express consent of Lessor, shall hold over after the expiration of the term of this Lease including any option period under paragraphs 2 and 3, Lessee shall remain bound by all the covenants and agreements herein, except that the tenancy shall be from month to month. 21. BINDING ON HEIRS, SUCCESSOR AND ASSIGNS: The covenants and agreements of this Lease shall be binding upon the heirs, executors, administrators, successors and assigns of both parties hereto, except as hereinabove provided. Page 4 of 5 J:\CONTRACTS\Lease\Lease with North Mason Fire Authority final.docx 22. USE: Lessee shall use the premises for the purposes of providing Mason County services. The Lessee agrees that they shall not allow the property to be used for any other purposes without written consent of the Lessor. The Lessee agrees that no chemicals shall be used, stored or disposed of in violation of any Federal, State or Local ordinance, rules or regulations. The Lessee agrees to release and hold harmless the Lessor from any legal cause of action brought by any third -party governmental entity or private person in regards to Lessee's use or storage of any toxic chemical products in regards to Lessee's use or storage of any toxic chemical products, compounds or environmental hazards. The parties herein agree that the Lessee reserves the right to allow other Mason County Departments to use the premises if it so chooses. The County agrees that any such use shall be in conformity with other provisions of this Lease. 23. NOTICE: Any notice required to be given by either party to the other shall be deposited in the United States Mail, postage prepaid and addressed to the Lessor at: North Mason Regional Fire Authority, P.O. Box 277, Belfair, WA 98528, or the Lessee at: Mason County Administrator, 411 North 5th Street, Shelton, WA 98584, or at such other address as either party may designate to the other in writing from time to time. IN WITNESS WHEREOF, the parties have hereunto set their hands the date first above written. LESSOR: North Mason Regional Fire Authority LESSEE: Chair Mason County Commission APPROVED AS TO FORM: Tim Whitehea Page 5 of 5 J:\CONTRACTS\Lease\Lease with North Mason Fire Authority final.docx