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HomeMy WebLinkAboutShelton School District No. 309LEASE THIS AGREEMENT entered into this 8`h day of July, 2003 between SHELTON SCHOOL DISTRICT NO. 309, a Washington municipal corporation, hereinafter referred to as Lessor and MASON COUNTY, a Washington municipal corporation, hereinafter referred to as Lessee. Lessor hereby agrees to lease to Lessee a parcel of land representing approximately 30,000 square feet on property the legal description of which is attached hereto as Exhibit "A" and as depicted on Exhibit "B", hereinafter referred to as the Leased Premises, upon the following terms and conditions: 1. TERM AND RENEWAL OPTION: The term of this lease shall be for ten years, cornmencing on July 8, 2003 and terminating on July 8, 2013. Lessee shall have an option to renew and extend the Lease for four successive ten-year periods upon the same terms and condition upon giving Lessor 180 days advanced written notice of its exercise of the option. 2. RENT: There shall be no rent paid. This Leased Premises are not currently necessary to the Lessor's operations The consideration to the Lessor of this lease is the mutual benefits to be derived by the parties and the publicly sponsored after -school recreation opportunities that will be provided for Lessor's students. 3. LEGAL USE ONLY: Lessee shall use and occupy the premises for operation of a skateboard park and shall not engage in any illegal activity or any activity constituting a nuisance. Lessee agrees to provide general oversight for the park operations. 4. SURRENDER OF PREMISES: Lessee covenants and agrees that the Lease shall imrnediately terminate if the Lease Premises are no longer being used as a skateboard park open to the general public. Lessee will surrender and deliver up said the Leased Premises, together with the appurtenances thereunto belonging to the said Lessor, its successors or assigns, peaceably and quietly upon the termination of the Lease, or at the expiration of the said term of time in good condition, injury or destruction by fire and natural wear and decay excepted. 5. IMPROVEMENTS: The Lessee shall construct a concrete slab over the portion of the Leased Premises and construct a fence around it, hereinafter referred to as Lease Improvements. 6. COVENANT AGAINST WASTE: Lessee further covenants and agrees that it will not do or suffer any waste in said Leased Premises; that it will use the same for lawful purposes only. 1 only. 7. ASSIGNMENT RESTRICTIONS: Lessee may not assign this lease or sublet the whole or a portion of the Leased Premises to any individual or business without the written consent of the Lessor that may be withheld in Lessor's sole discretion Any assigmnent or sublease which may be so approved shall in no way affect or diminish the obligations of Lessee to perform all of their obligations under this lease unless the Lessor consents, in writing, to release Lessee from said obligations. MAINTENANCE AND ALTERATIONS: The Lessee shall keep the Leased Premises in a good state of repairs, shall maintain the landscape in a neat and clean condition, and shall not make any other improvements to the Leased Premises other than those described in Paragraph 5 above without the written consent of Lessor Any improvements or alterations so made shall, in addition to the Improvements, at the discretion of the Lessor either become the property of the Lessor at the termination of the Lease or Lessee shall, at its expense, remove the Improvements, any other improvements and trade fixtures and restore the Lease Premises in as near to its condition at the commencement of the lease as is reasonably possible; provided however, that if consent is given for such improvements, unless otherwise agreed, Lessor shall pay in accordance with paragraph 14, if termination of the lease is through notice of cancellation. 9. SIGNS AND TRADE FIXTURES: The Lessee shall have the right to erect signs upon the Leased Premises, provided that said signs are in conformance with all regulations of governing bodies, and are approved by Lessor in writing. The Lessee shall install trade fixtures that are in the nature of skateboard park equipment, hereinafter referred to as Trade Fixtures. At the termination of the Lease and tenancy, the Lessee may remove all trade fixtures installed by it or owned by it so long as the premises are returned to a state of repair that is acceptable to Lessor. The Lessee at the termination of the Lease shall forfeit all other improvements. 10. WARRANTY OF RIGHT TO LEASE: The Lessor warrants that it has the right to enter into this Lease as Lessor, and that the Leased Premises can be used for the purposes herein stated in accordance with current vested rights and applicable laws. 11. INSURANCE: Lessee shall pay for casualty insurance for the Improvements and Trade Fixtures. 12. DESTRUCTION OF PREMISES: If the leased premises shall be totally destroyed by fire or the elements, or if said premises be partial destroyed or rendered useless or untenantable by fire or the elements so that the same cannot be repaired or restored within 30 days from the happening of such injury, then either Lessor or Lessee may terminate this Lease by notice in writing to the other within ten (10) days after such destruction or partial destruction. Lessee shall have no claim for damages or for compensation by any reason including, but not 2 limited to consequential damages or inconvenience, annoyance or loss arising from Lessor's repair or reconstruction or failure to repair or reconstruct the building at any time. 13. REMEDIES UPON DEFAULT: It is mutually covenanted and agreed by and between the parties hereto that in the case of non-compliance with the conditions and covenants stipulated to be performed by the said Lessee, and in the event the Lessee is given TWENTY (20) days notice in the performance of such conditions or covenants, and has not in such period started to correct the defaulted conditions, then in that event the Lessor shall have the full right to vacate this Lease an declare all provisions, conditions and terms thereof null and void. Whereupon the said Lessee shall yield up to the Lessor full, quiet, peaceable and inunediate possession of the Leased Premises, anything herein contained to the contrary thereof notwithstanding, and the Lessor, at its own option may institute proceedings in law or equity to collect such sums as may be due by the conditions of this lease. In the event any action becomes necessary to terminate this Lease agreement or to enforce any covenant herein, the prevailing party shall be entitled to reasonable attorney's fees and costs. Venue shall be in Mason County. In the event of default by Lessee of any of the terms or conditions of this lease, Lessor may immediately regain possession of the premises. Lessee agrees that if court action is taken to take possession hereunder that the court shall grant a preliminary injunction ordering the surrender of the Leased Premises to Lessor and Lessee further waives the right to request a bond. The court shall award reasonable attorneys fees to the prevailing party in any such action. 14. CANCELLATION OF THE LEASED PREMISES: The Lessor retains the right during the lease or during any renewal period of the Lease to cancel and terminate the Lease by giving the Lessee twenty-four months written notice. If such notice is given in the first year of the Lease, the Lessor shall pay to Lessee a cancellation fee equal to the amount of money the Lessee paid for the Improvements, hereinafter referred to as the Cancellation Fee. If the notice is given in any succeeding year of the lease during the first term the Cancellation Fee shall be reduced 10% for every expired year of the lease. There shall be no such fee if notice is given in any lease extension period. Lessee may cancel the Lease at any time upon 30 days written notice. 15. INDEMNIFICATION: Lessee will indemnify, defend and hold harmless Lessor, its officers, agents and employees from any claim, liability or suit on behalf of any person, persons, corporations and/or firm for any injuries or damages occurring in or about the Leased Premises, where said damages or injury was caused or partially caused by the acts or omissions of Lessee and/or of Lessee's agents, employees, servants, customers or clients, invitees or licensees unless caused by the negligence of Lessor. Lessee shall, at its own expense, maintain a comprehensive general "all risk" liability insurance policy with a combined single limit of $1,000,000.00 covering the Leased Premises. Lessee shall furnish to Lessor a certificate of insurance within thirty (30) days of occupancy, and renewal certificates evidencing continued compliance with the foregoing requirements. 1 16. WAIVER OF SUBROGATION: Lessee and Lessor each hereby release and relieve the other, and waive their entire right of recovery against the other for loss or damage arising out of or incident to the perils insured against under paragraph 17, which perils occur in, on or about the Leased Premises, whether due to the acts or omissions of Lessor or Lessee or their agents, employees, contractors, licensees and/or invitees. Lessee and Lessor shall, upon obtaining the policies of insurance required hereunder, give notice to the insurance carrier or carriers that the foregoing mutual waiver of subrogation is contained in this Lease. 17. NOTICES: Any notice to be sent to the Lessee shall be sent to it at c111 tiSt'fit- ' h i1vn R85irl Any notices to be sent to the Lessor shall be sent to 7Ga 5 , t $431 S kellonr. rj j%itsuch other addresses as the parties may from time to time designate in writing to the other party. 18. SUCCESSORS AND ASSIGNS: The terms and conditions of this Lease shall be binding upon the successors and assigns of the Lessor and the Lessee, and if the Lessor be an individual, or individuals, or the heirs, administrators, executors and assigns of such individual or individuals. 19. HOLD OVER TENANCY: If Lessee holds over or remains in possession or occupancy of the Leased Premises after the expiration of the term of this lease or after any sooner termination thereof, without any written lease of the Leased Premises being actually made and entered into between Lessor and Lessee, such holding over or continued possession or occupancy shall not be deemed or held to operate as any renewal or extension of this lease, and shall only create a tenancy from month to month, which may at any time be terminated by either Lessor or Lessee giving to the other thirty (30) days' notice of such intention to terminate the same. For any such hold over period the rent shall be $1,500.00 per month. 20. LESSOR'S RIGHT OF ENTRY: Lessor reserves the right to enter upon the Leased Premises during public hours at any time to inspect the same, or for the purpose of exhibiting the same to persons wishing to purchase the same. 21. PARAGRAPH HEADINGS: The titles to the paragraphs of this agreement are solely for the convenience of the parties and shall not be used to explain, modify, simplify, or aid in the interpretation of the provisions of this agreement. 22. ENTIRE AGREEMENT: This agreement shall constitute the entire agreement between the parties Any prior understanding or representation of any kind preceding the date of this agreement shall not be binding upon either party except to the extent incorporated in this agreement. 23. MODIFICATION OF AGREEMENT: Any modification of this agreement or additional obligation assumed by either party in connection with this agreement shall be binding only 4 if evidenced in writing signed by each party. LESSOR: SHELTON SCHOOL DISTCT NO. 309 ES SMITH, CHAIRMAN LESSEE: MASON COUNTY ----�/,ice HERB BAZ , CHAIRMAN WES JOHNS ON(COMMISSIONER • JA STATE OF WASHINGTON ) :ss COUNTY OF MASON ) 5 On this q day oN A , 2003, before me, the undersigned, a Notary Public in and for the State of Washington, d�unissioned and sworn, personally appeared M. JAMES SMITH to me known to be the Chairman of the Board of Directors of SHELTON SCHOOL DISTRICT NO. 309, the municipal corporation that executed the foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said corporation, for the uses and purposes therein mentioned, and on oath stated that he was authorized to execute the said instrument. Witness my hand and official seal hereto affixed the day and ypar first above written. Notary Public in and for the S�"t9e� of_ Washington, residing at 5¢ m', My Commission expires: /- 6 Exhibit A The North twenty-five (25) acres of the Southeast quarter (SE 'A) of the Southeast quarter (SE %) of Section twelve (12), Township twenty (20) North, Range four (4) West, W.M., excepting road rights -of -way. Said land also known as a portion of Tract 8, City of Shelton Short Subdivision No. 6, recorded August 28, 1975, Auditor's File No. 305731. Parcel No. 42012 40 62020 7