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HomeMy WebLinkAbout042715_ca22Consent Agenda Regular Agenda JEFFERSON COUNTY BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST TO: Board of Commissioners Philip Morley, County Administrator FROM: Su Tipton DATE: April 17, 2015 RE: The Cupola House Lease Revision #1 STATEMENT OF ISSUE: Port of Port Townsend CPI -U lease increase for the Cupola House. Lease increase is: $32.30. ANALYSIS: As per original Lease, item number 3, states that the CPI -U rate will be applied to the lease. FISCAL IMPACT: $387.60 Annually RECOMMENDATION: Recommend that the Commissioners please sign this lease Amendment 1 DEPARTMENT CONTACT: Su Tipton, 360.379.5610 ext.206 REVIEWED BY: J x�z Philip Morley, C ty Administrator Date `. LEASE AMENDMENT #1 THIS LEASE AGREEMENT made this 13`h day of March 2015, by and between the PORT OF PORT TOWNSEND, a municipal corporation organized and existing under the laws of the State of Washington, Lessor, hereinafter referred to as "Lessee," and JEFFERSON COUNTY, on behalf of Jefferson County Extension, a state university organized and existing under the laws of the State of Washington, hereinafter referred to as "Lessee." WITNESSETH: On February 13th, 2013, the parties entered into a Building Lease Agreement concerning a 2,543 square foot building commonly referred to as the "Cupola House ", with a street address of 380 Jefferson Street, Port Townsend, WA 98368, located at the Lessor's Point Hudson facility. The February 13`h, 2013 Building Lease Agreement is hereinafter referred to as the "Original Lease ". Paragraph #3 of the Original Lease speaks to the rent for the premises, and establishes a monthly rental sum of $1,700.00 plus all applicable taxes. Paragraph #3 also states that the rental rate beginning in year two and annually throughout the term of the lease will be adjusted by an amount equal to the accumulative amount found on the Consumer Price Index for Seattle- Tacoma - Bremerton for all urban consumers (CPI - U), which is compiled by the Department of Labor, Bureau of Statistics. 3. Consistent, with the CPI -U increase provision referenced above, the parties are agreed that paragraph #3 of the Original Lease should be amended to explicitly reflect a new rental rate of $1,732.30, as adjusted by the December 2014 Consumer Price Index for Seattle- Tacoma - Bremerton for all urban consumers (CPI -U). NOW, THEREFORE: Effective March 13, 2015, paragraph #3 of the Original Land Lease Agreement approved on the 13th of February, 2013, shall be amended to read as follows (note: deleted text shown in s}''euts; new /amended language shown with double_ underlining): 3. RENT: Lessee agrees to pay as rental for the leased premises the sum of One Thousand Seven Hundred Thirty -Two Dollars and Zero Thft Cents ($1,790:80 1 0) plus all applicable taxes. The rent for each month shall be paid to the Port in advance on or before the first day of each and every month of the lease term, and shall be payable at such place as the Port may hereinafter designate. The rental rate may be adjusted every three years to the to the prevailing fair market rental rate then prevailing for comparable commercial and /or industrial property in the Western Washington area, bearing in mind all allowable uses of the property and all services and amenities available to the property by virtue of its location. In the event that the parties are unable PORT OF PT /JEFF CO LEASE AMENDMENT #1 1 MARCH 2015 to reach agreement on the fair market rate adjustment, the rate shall be determined by arbitration before a single arbitrator who shall be jointly selected by the parties or by the Jefferson County Court. The rental rate beginning in year two and annually throughout the term of the lease will also be adjusted by an amount equal to the accumulative amount found on the Consumer Price Index for Seattle- Tacoma- Bremerton for all urban consumers (CPI -U), which is compiled by the Department of Labor, Bureau of Statistics. The benchmark month for CPI adjustments shall be December. In no event shall any rent adjustment result in a reduction in rent from the rate paid in the prior year. All other terms and conditions of the Lease Agreement dated February 13th, 2013 shall remain in effect. APPROVED this 13`h day of March, 2015, by the Port of Port Townsend and duly authenticated by the signature of the Executive Director. LESSEE (JEFFERSON COUNTY) Philip Morley, Jefferson County Administrator ATTEST: PORT OF PORT TOWNSEND Larry Crockett, Executive Director PORT OF PT /JEFF CO LEASE AMENDMENT #1 Ipproved as to form only Jefferson Co. Prosecutors OrWe David Alvarez, Chief CiviltPA APPROVED AS TO FORM Port Attorney MARCH 2015 STATE OF WASHINGTON COUNTY OF JEFFERSON I certify that I know or have satisfactory evidence that Philp Morley signed this instrument and that he is authorized to execute the instrument and acknowledged it to be his free and voluntary act for the uses and purposes mentioned in the instrument. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written. Dated: Signature of Notary Public in and foi the State of Washington, residing at My Appointment Expires: PORT OF PT /JEFF CO LEASE AMENDMENT #1 3 MARCH 2015 STATE OF WASHINGTON COUNTY OF JEFFERSON I certify that I know or have satisfactory evidence that Larry Crockett signed this instrument and that he is authorized to execute the instrument as Executive Director of the Port of Port Townsend and acknowledged it to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written. Dated: IG k''s ��AAAAtANItIII Signature of Notary Public in and for J�� �s� °" „� y ��i s y sg�bottia� � the State of Washington, residing at � 11011,FI OF\W PAS My Appointment Expires: PORT OF PT /JEFF CO LEASE AMENDMENT #1 4 MARCH 2015 PORT OF PORT TOWNSEND POINT HUDSON BUILDING LEASE THIS LEASE AGREEMENT made this 13th day of February, 2013, by and between the PORT OF PORT TOWNSEND, a municipal corporation organized and existing under the laws of the State of Washington, Lessor, hereinafter referred to as "the Port," and JEFFERSON COUNTY, a municipal corporation, on behalf of Jefferson County -WSU Extension, a joint or cooperative undertaking pursuant to Ch. 39.34 RCW between Jefferson County and WA State University, hereinafter referred to as "Lessee." WITNESSETH: That the parties hereto do mutually agree as follows: LEASED PREMISES: The Port hereby leases to Lessee, and Lessee hereby hires and leases from the Port, the following described premises situated in Jefferson County, State of Washington: A 2,543 square foot building commonly referred to as the "Cupola House," located at 380 Jefferson Street, Port Townsend WA 98368 in the Port's Point Hudson facility, hereinafter referred to as "the premises." 2. TERM: The term of this Lease is five (5) years, beginning March 1, 2013, and endinc at midnight, February 28, 2018 unless extended or sooner terminated as provided in this Lease. The Lessee shall also have an option to extend the lease term by two additional five (5) year terms. Notification to extend the Lease will be done in writing 90 days prior to end of the initial lease term. 3. RENT: Lessee agrees to pay as rental for the leased premises the sum of One Thousand Seven Hundred Dollars and Zero Cents ($1,700.00) plus all applicable taxes. The rent for each month shall be paid to the Port in advance on or before the first day of each and every month of the lease term, and shall be payable at such place as the Port may hereinafter designate. The rental rate may be adjusted every three years to the to the prevailing fair market rental rate then prevailing for comparable commercial and /or industrial property in the Western Washington area, bearing in mind all allowable uses of the property and all services and amenities available to the property by virtue of its location. in the event that the parties are unable to reach agreement on the fair market rate adjustment, the rate shall be determined by arbitration before a single arbitrator who shall be jointly selected by the parties or by the Jefferson County Court. The rental rate beginning in year two and annually throughout the term of the lease will also be adjusted by an amount equal to the accumulative amount found on the Consumer Price Index for Seattle- Tacoma - Bremerton for all urban consumers (CPI -U), which is compiled by the Department of Labor, Bureau of Statistics. The benchmark month for CPI adjustments shall be December. In no event shall any rent adjustment result in a reduction in rent from the rate paid in the prior year. PORT OF PTNVSU EXTENSION LEASE AGREEMENT 4. LATE CHARGE: In the event that any installment of rent remains unpaid more than twenty (20) days after it is due, then Lessee shall also be obliged to pay a "late charge' as per the Port of Port Townsend Rate Schedule then in effect. 5. DEPOSIT: Lessee shall deposit with the Port two month's rent in the amount of Three Thousand Four Hundred Dollars and Zero Cents ($3,400.00) plus all applicable taxes in two separate installments, as follows: an initial installment of One Thousand Seven Hundred Dollars and Zero Cents ($1,700.00) shall be paid along with the first month's rent; and a second installment of One Thousand Seven Hundred Dollars and Zero Cents ($1,700.00) shall be paid along with the March 2014 rent. The deposit shall be held by the Port as security for Lessee's faithful performance of all of its obligations under this Lease. Any interest earned on amounts deposited shall be retained by the Port. The deposit shall be returned to Lessee upon termination of this Lease, less any charges owing to the Port or expenses incurred by the Port in repairing damage caused by Lessee or restoring the leased premises to the condition required upon termination of this Lease. 6. USE OF PREMISES: Lessee shall use the premises for administrative offices and classrooms and shall not use them for any other purpose without the prior written consent of the Port. Lessee shall use the entire premises for the conduct of said business in a first class manner continuously during the entire term of this Lease, with the exception of temporary closures for such periods as may reasonably be necessary for repairs or redecorating or for reasons beyond Lessee's reasonable control. Lessee agrees that it will not disturb the Port or any other tenant of the Port's by making or permitting any disturbance or any unusual noise, vibration or other condition on or in the premises. 7. UTILITIES: Lessee shall be liable for, and shall pay throughout the term of this Lease, all utility services furnished to the premises, including, but not limited to, light, heat, electricity, gas, water, sewerage, garbage disposal. ACCEPTANCE OF PREMISES: Lessee has examined the leased premises and accepts them in their present condition, with the exception of the following improvements, which the Port agrees to install at its expense prior to occupancy by Lessee: a. A central heating system; and b. New sinks and toilets in both bathrooms. PORT OF PT=SU EXTENSION LEASEAGREEMENT 9. MAINTENANCE AND REPAIR: At the expiration or sooner termination of this Lease, Lessee shall return the premises to the Port in the same condition in which received (or, if altered by Lessee with the Port's consent, then the premises shall be returned in such altered condition), reasonable wear and tear and damage by fire or unavoidable casualty excepted. Lessee shall, at its' own expense, and at all times: a. Keep the premises, and the adjoining roadways and sidewalks, neat, clean and in a safe and sanitary condition; b. Maintain and keep the leased premises in a good state of repair; and C. Not commit waste of any kind. 10. ALTERATIONS AND IMPROVEMENTS: Lessee shall make no alterations or improvements to or upon the premises or install any fixtures (other than trade fixtures which can be removed without injury to the premises) without first obtaining written approval from the Executive Director of the Port. Such written approval shall also include agreement for disposition of the improvements upon termination of this Lease. 11. INSPECTION - "FOR RENT" SIGNS: The Port reserves the right to inspect the leased premises at any and all reasonable times throughout the term of this Lease, PROVIDED, that it shall not interfere unduly with Lessee's operations. The right of inspection reserved to the Port hereunder shall impose no obligation on the Port to make inspections to ascertain the condition of the premises, and shall impose no liability upon the Port for failure to make such inspections. The Port shall have the right to place and maintain "For Rent" signs in conspicuous places on the premises for thirty (30) days prior to the expiration or sooner termination of this Lease. 12. POSSESSION: If the Port shall be unable for any reason to deliver possession of the premises, or any portion thereof, at the time of the commencement of the term of this Lease, the Port shall not be liable for any damage caused thereby to Lessee, nor shall this Lease thereby become void or voidable, nor shall the term specified herein be in any way extended, but in such event Lessee shall not be liable for any rent until such time as the Port can deliver possession, PROVIDED, that if Lessee shall, in the interim, take possession of any portion of the premises, it shall pay as rental the full rental specified herein reduced pro rata for the portion of the premises not available for possession by Lessee, AND PROVIDED FURTHER, that if the Port shall be unable to deliver possession of the premises at the commencement of the term of this Lease, Lessee shall have the option to terminate this Lease by at least thirty (30) days written notice, unless the Port shall deliver possession of the premises prior to the effective date of termination specified in such notice. If Lessee shall, with the Port's consent, take possession of all or any part of the premises prior to the commencement of the term of this Lease, all of the terms and conditions of this Lease shall immediately become applicable. PORT OF PTM/SU EXTENSION LEASE AGREEMENT 13. DAMAGE OR DESTRUCTION: a. Should the premises or the buildings or structures of which the premises are a part be damaged by fire or other casualty, and if the damage is repairable within four (4) weeks from the date of the occurrence (with the repair work and the preparations therefore to be done during regular working hours on regular work days), the premises shall be repaired with due diligence by the Port, and in the meantime the monthly minimum rental shall be abated in the same proportion that the untenantable portion of the premises bears to the whole thereof, for the period from the occurrence of the damage to the completion of the repairs. b. Should the premises or any buildings or structures of which the premises are a part be completely destroyed by fire or other casualty, or should they be damaged to such an extent that the damage cannot be repaired within four (4) weeks of the occurrence, the Port shall have the option to terminate this Lease on thirty (30) days' notice, effective as of any date not more than sixty (60) days' after the occurrence. In the event that this paragraph shall become applicable, the Port shall advise Lessee within thirty (30) days after the happening of any such damage whether the Port has elected to continue the lease in effect or to terminate it. If the Port shall elect to continue this Lease in effect, it shall commence and prosecute with due diligence any work necessary to restore or repair the premises. If the Port shall fail to notify Lessee of its election within said thirty (30) day period, the Port shall be deemed to have elected to terminate this Lease, and the lease shall automatically terminate sixty (60) days after the occurrence of the damage. For the period from the occurrence of any damage to the premises to the date of completion of the repairs to the premises (or to the date of termination of the lease if the Port shall elect not to restore the premises), the monthly minimum rental shall be abated in the same proportion as the untenantable portion of the premises bears to the whole thereof. 14. INDEMNIFICATION AND HOLD HARMLESS: The Port, its employees and agents shall not be liable for any injury (including death) to any persons or for damage to any property, regardless of how such injury or damage be caused, sustained, or alleged to have been sustained by the Lessee or by others as a result of any condition (including existing or future defects in the premises) or occurrence whatsoever related in any way to the premises and the areas adjacent thereto or related in any way to Lessee's use or occupancy of the premises and of the areas adjacent thereto. Lessee agrees to defend and to hold and save the Port harmless from all liability or expense of litigation) in connection with any such items of actual or alleged injury or damage. PORT OF PT/WSU EXTENSION LEASE AGREEMENT 15. INSURANCE: Lessee agrees to maintain during the lease term liability insurance as set forth below, at Lessee's sole expense. All such insurance shall name the Port of Port Townsend as an additional insured, and shall be with insurance companies acceptable to the Port. a. Comprehensive General Liability Insurance against claims for injury or death to persons or damage to property with minimum limits of liability of $1,000,000.00 combined single limit for each occurrence. Such insurance shall include but not be limited to bodily injury liability, personal injury liability, property damage liability, broad form property damage liability, contractual liability, and products /completed operations liability. b. Comprehensive Business Automobile Liability Insurance against claims for injury or death to persons or damage to property with minimum limits of liability of $1,000,000.00 combined single limit for each occurrence. Such insurance shall include but not be limited to bodily injury liability, property damage liability, hired car liability, and non -owned auto liability. C. Workers Compensation Insurance as will protect tenant's employees from claims under Washington Workers Compensation Act as well as all Federal Acts applicable to the tenant's operations at the site such as but not limited to U.S. Longshoremen and Harborworkers Act, Jones Act, and Federal Employers Liability section of the Washington Workers Compensation Policy and all Federal Acts Insurance shall not be less than $1,000,000.00 for each occurrence. The Lessee agrees to supply the Port with appropriate evidence to establish that its insurance obligations have been met, and that the insurance policy or policies are not subject to cancellation without at least thirty (30) days advance written notice to the Port. The conditions set forth in subparagraphs a, b and c of this Paragraph 15 shall be met prior to occupancy. 16. WAIVER OF SUBROGATION: The Port and Lessee hereby mutually release each other from liability and waive all right of recovery against each other for any loss from perils insured against under their respective fire insurance contracts, including any extended coverage endorsements thereto, PROVIDED, that this paragraph 16 shall be inapplicable if it would have the effect, but only to the extent that it would have the effect, of invalidating any insurance coverage of the Port or Lessee. 17. INCREASE IN COST OF INSURANCE: Lessee shall not use the demised premises in such a manner as to increase the existing rates of insurance applicable to the buildings or structures of which the premises are a part. If it nevertheless does so, then, at the option of the Port, the full amount of any resulting increase in premiums paid by the Port with respect to the buildings or structures of which the leased premises are a part, and to the extent allocable to the term of this Lease, may be added to the amount of rental hereinabove specified and shall be paid by Lessee to the Port upon the monthly rental day next thereafter occurring. PORT OF PTNVSU EXTENSION LEASE AGREEMENT 18. TAXES: Lessee shall be liable for, and shall pay throughout the term of this Lease, all license and excise fees and occupation taxes covering the business conducted on the premises, and all taxes on property of Lessee on the leased premises and any taxes on the leased premises or leasehold interest created by this Lease Agreement. 19. COMPLIANCE WITH PORT REGULATIONS AND WITH ALL LAWS: Lessee agrees to comply with all applicable rules and regulations of the Port pertaining to the building or other realty of which the premises are a part now in existence or hereafter promulgated for the general safety and convenience of the Port, its various tenants, invitees, licensees and the general public. Lessee also agrees to comply with all applicable federal, state, and municipal laws, ordinances, and regulations. Lessee further agrees that all buildings, structures or other improvements, approved by the Port, will be properly permitted by the City of Port Townsend. Any fees for any inspection of the premises during or for the lease term by any federal, state or municipal officer and the fees for any so- called "Certificate of Occupancy" shall be paid by Lessee. 20. ASSIGNMENT OR SUBLEASE: Lessee shall not assign or transfer this Lease or any interest therein nor sublet the whole or any part of the premises, nor shall this Lease or any interest thereunder be assignable or transferable by operation of law or by any process or proceeding of any court, otherwise, without the written consent of the Port first had and obtained. If the Port shall give its consent to any assignment or sublease, this paragraph shall nevertheless continue in full force and effect and no further assignment or sublease shall be made without the Port's consent. The Port's consent will not unreasonably be withheld. 21. DEFAULTS: Time is of the essence of this Lease Agreement, and in the event of the failure of Lessee to pay the rentals or other charges at the time and in the manner herein specified, or to keep any of the covenants or agreements herein set forth to be kept and performed, the Port may elect to terminate this Lease and reenter and take possession of the premises with or without process of law, PROVIDED, however, that Lessee shall be given fifteen (15) days' notice in writing stating the nature of the default in order to permit such default to be remedied by Lessee within said fifteen (15) day period. If upon such reentry there remains any personal property of Lessee or of any other person upon the leased premises, the Port may, but without the obligation so to do, remove said personal property and hold it for the owners thereof or may place the same in a public garage or warehouse, all at the expense and risk of the owners thereof, and Lessee shall reimburse the Port for any expense incurred by the Port in connection with such removal and storage. The Port shall have the right to sell such stored property, without notice to Lessee, after it has been stored for a period of thirty (30) days or more, the proceeds of such sale to be applied first to the cost of such sale, second to the payment of the charges for storage, and third to the payment of any other amounts which may then be due from Lessee to the Port, and the balance, if any, shall be paid to Lessee. Notwithstanding any such reentry, the liability of Lessee for the full rental provided for herein shall not be extinguished for the balance of the term of this Lease, and Lessee shall make good to the Port any deficiency arising from a re- letting of the leased PORT OF PT/WSU EXTENSION LEASE AGREEMENT premises at a lesser rental than that hereinbefore agreed upon. Lessee shall pay such deficiency each month as the amount thereof is ascertained by the Port. Any failure by the owners, officers, or principals of Lessee to pay rentals, storage fees, moorage or any other charges owed to the Port under separate contract shall constitute default under provisions of this Lease Agreement. 22. TERMINATION BY PORT: In the event that the Port, at its sole discretion, shall require the use of the premises for any purpose for public or private use in connection with the operation of the business of the Port, then this Lease may be terminated by the Port by written notice delivered or mailed by the Port to the Lessee sixty (60) or more days before the termination date specified in the notice. Compensation to Lessee for loss of use, cost of relocation, and /or cost of improvement, will be agreed by Lessee and the Port Executive Director. 23. TERMINATION FOR GOVERNMENT USE: In the event that the United States Government or any agency or instrumentality thereof shall, by condemnation or otherwise, take title, possession or the right to possession of the premises or any part thereof, the Port may, at its option, terminate this Lease as of the date of such taking, and, if Lessee is not in default under any of the provisions of this Lease on said date, any rental prepaid by Lessee shall, to the extent allocable to any period subsequent to the effective date of the termination, be promptly refunded to Lessee. 24. TERMINATION BECAUSE OF COURT DECREE: In the event that any court having jurisdiction in the matter shall render a decision which has become final and which will prevent the performance by the Port of any of its obligations under this Lease, then either party hereto may terminate this Lease by written notice, and all rights and obligations hereunder (with the exception of any undischarged rights and obligations that accrued prior to the effective date of termination) shall thereupon terminate. If Lessee is not in default under any of the provisions of this Lease on the effective date of such termination, any rental prepaid by Lessee shall, to the extent allocable to any period subsequent to the effective date of the termination, be promptly refunded to Lessee. 25. SIGNS: No signs or other advertising matter, symbols, canopies or awnings shall be attached to or painted or within the leased premises, including the windows and doors thereof, without the approval of the Executive Director of the Port first had and obtained At the termination or sooner expiration of this Lease, all such signs, advertising matter, symbols, canopies or awnings attached to or painted by Lessee shall be removed by Lessee at its own expense, and Lessee shall repair any damage or injury to the premises, and correct any unsightly condition, caused by the maintenance and removal of said signs, etc. PORT OF PTNVSU EXTENSION LEASE AGREEMENT 7 26. WAIVER: The acceptance of rental by the Port for any period or periods after a default by Lessee hereunder shall not be deemed a waiver of such default unless the Port shall so intend and shall so advise Lessee in writing. No waiver by the Port of any default hereunder by Lessee shall be construed to be or act as a waiver of any subsequent default by Lessee. After any default shall have been cured by Lessee, it shall not thereafter be used by the Port as a ground for the commencement of any action under the provisions of paragraph 22 hereof. 27. SURRENDER OF PREMISES -ATTORNEYS' FEES: At the expiration or sooner termination of this Lease, Lessee shall promptly remove building from leased property or re- negotiate a lease at the same or different site at the Port. In the event that the Port shall be required to bring any action to enforce any of the provisions of this Lease, or shall be required to defend any action brought by Lessee with respect to this Lease, and if the Port shall be successful in such action, Lessee shall, in addition to all other payments required herein, pay all of the Port's actual costs in connection with such action, including such sums as the court or courts may adjudge reasonable as attorney's fees in the trial court and in any appellate courts. 28. HOLDING OVER: If Lessee shall, with the consent of the Port, hold over after the expiration or sooner termination of the term of this Lease, the resulting tenancy shall, unless otherwise mutually agreed, be for an indefinite period of time on a month -to -month basis. During such month -to -month tenancy, Lessee shall pay to the Port the same rate of rental as set forth herein, unless a different rate shall be agreed upon, and shall be bound by all of the additional provisions of this Lease Agreement in so far as they may be pertinent. 29. ADVANCES BY PORT FOR LESSEE: If Lessee shall fail to do anything required to be done by it under the terms of this Lease, except to pay rent, the Port may, at its sole option, do such act or thing on behalf of Lessee, and upon notification to Lessee of the cost thereof to the Port, Lessee shall promptly pay the Port the amount of that cost. 30. LIENS AND ENCUMBRANCES: Lessee shall keep the leased premises free and clear of any liens and encumbrances arising or growing out of the use and occupancy of the said premises by Lessee. At the Port's request, Lessee shall furnish the Port with written proof of payment of any item which would or might constitute the basis for such a lien on the leased premises if not paid. 31. NOTICES: All notices hereunder may be delivered or mailed. If mailed, they shall be sent by certified or registered mail to the following respective addresses: To Lessor: THE PORT OF PORT TOWNSEND P.O. Box 1180 Port Townsend, Washington 98368 PORT OF PTNVSU EXTENSION LEASE AGREEMENT To Lessee: WASHINGTON STATE UNIVERSITY EXTENSION 380 Jefferson Street Port Townsend, WA 98368 Phone: (360) 379 -5610 or to such other respective addresses as either party hereto may hereafter from time to time designate in writing. Notices sent by mail shall be deemed to have been given when properly mailed, and the postmark affixed by the United States Post Office shall be conclusive evidence of the date of mailing. 32. JOINT AND SEVERAL LIABILITY: Each and every party who signs this Lease, other than in a representative capacity, as Lessee, shall be jointly and severally liable hereunder. 33. "LESSEE" INCLUDES LESSEE, ETC.: It is understood and agreed that for convenience the word "Lessee" and verbs and pronouns in the singular number and neuter gender are uniformly used throughout this Lease, regardless of the number, gender or fact of incorporation of the party who is, or of the parties who are, the actual Lessee or Lessee under this Lease Agreement. 34. CAPTIONS: The captions in this Lease are for convenience only and do not in any way limit or amplify the provisions of this Lease. 35. SEVERABILITY: If any term or provision of this Lease Agreement or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Lease Agreement or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable shall not be affected thereby and shall continue in full force and effect. 36. NON - DISCRIMINATION SERVICES: The Lessee agrees that it will not discriminate by segregation or otherwise against any person or persons because of race, creed, color, sex, sexual orientation, or national origin in furnishing, or by refusing to furnish, to such person, or persons, the use of the facility herein provided, including any and all services, privileges, accommodations, and activities provided thereby. It is agreed that the Lessee's noncompliance with the provisions of this clause shall constitute a material breach of this Lease. In the event of such noncompliance, the Port may take appropriate action to enforce compliance, may terminate this Lease, or may pursue such other remedies as may be provided by law. 37. NON - DISCRIMINATION EMPLOYMENT: The Lessee covenants and agrees that in all matters pertaining to the performance of this Lease, Lessee shall at all times conduct its business in a manner which assures fair, equal and non - discriminatory treatment of all persons without respect to race, creed or national origin and, in particular: PORT OF PT/WSU EXTENSION LEASE AGREEMENT a. Lessee will maintain open hiring and employment practices and will welcome applications for employment in all positions from qualified individuals who are members of racial or other minorities, and b. Lessee will comply strictly with all requirements of applicable federal, state or local laws or regulations issued pursuant thereto relating to the establishment of non - discriminatory requirements in hiring and employment practices and assuring the service of all patrons or customers without discrimination as to any person's race, creed, color, sex, sexual orientation, or national origin. 38. EASEMENTS: The Parties recognize that the Port facilities are continuously being modified to improve the utilities and services used and provided by the Port. The Port or its agents shall have the right to enter the demised premises of the Lessee, and to cross over, construct, move, reconstruct, rearrange, alter, maintain, repair and operate the sewer, water, and drainage lines, and the electrical service, and all other services required by the Port for its use. The Port is hereby granted a continuous easement or easements that the Port believes is necessary within the lease premises of the Lessee, without any additional cost to the Port for the purposes expressed hereinabove; PROVIDED however, that the Port by virtue of such use does not permanently deprive the Lessee from its beneficial use or occupancy of its leased area. In the event that the Port does permanently deprive the Lessee from such beneficial use or occupancy, then an equitable adjustment in rent or in the cost required to modify its premises to allow the Lessee to operate its business, will be negotiated and paid by the Port to the Lessee. In the event that such entry by the Port is temporary in nature, then the Port shall reimburse the Lessee for the cost required to modify its premises for the temporary period that the Lessee is inconvenienced by such Port entry. The Port will not be responsible to the Lessee for any reduced efficiency, or loss of business occasioned by such entry. 39. TENANT'S ACKNOWLEDGEMENT OF PRESENCE OF CERTAIN SUBSTANCES: Tenant acknowledges that, because the buildings at Point Hudson were constructed many years ago that they may contain asbestos, creosote, lead paint and other substances which would not be allowed in modern construction. The Port will comply with the directives of any lawful authority which may require the removal or remediation or remodeling of the Point Hudson facility, but Tenant agrees not to demand the removal of any such substances which do not impose a hazard to the health of Tenant and its employees, guests and invitees. In the event that any such substances need to be removed from the premises, Tenant agrees to cooperate with the Port and allow the removal of such materials, including the temporary cessation of Tenant's activities if necessary. In the event that Tenant's activities are disrupted by such activities, Tenant's rent shall be abated during any such period of disruption, but Tenant shall not be entitled to any damages or compensation for business interruption or loss of revenue, provided the Port moves expeditiously to complete such activities. PORT OF PTNVSU EXTENSION LEASE AGREEMENT 10 Lease Agreement dated this 13th day of February 2013 is hereby approved by the Port of Port Townsend, on this 13th day of February 2013 and effective upon the receipt of a deposit and liability insurance documentation from the Lessee. LESSEE JEFFERSON COUN Board of County Commissioners �ftc1 Ss�clltvGs''d,1ukJ�f tY Attest: Raina Randall, Deputy Clerk of the Board Approved as to Form: j /Z`1 Z07-3 ti !(( David Alvarez, Deputy Prpjecuting Attorney PORT OF PORT TOWNSEND Larry Crockett, Executive Director PORT OF PT/WSU EXTENSION LEASE AGREEMENT 11 APPROVED AS TO FORM "'r- ' r J'--) Gera Port Attorney STATE OF WASHINGTON COUNTY OF JEFFERSON I certify that I know or have satisfactory evidence that Pxo'dS&11jic•,'w"I PA, Ijohnss,.signed this instrument and that he is authorized to execute the instrument and acknowledged it to be his free and voluntary act for the uses and purposes mentioned in the instrument. Dated: Oi.2.-�DS�� /3 Signature of Nota ry Public: •��c 'o '� �4ij��gSH'NG, My Appointment Expires: G 9A) PORT OF PT/WSU EXTENSION LEASE AGREEMENT 12 STATE OF WASHINGTON COUNTY OF JEFFERSON I certify that I know or have satisfactory evidence that Larry Crockett signed this instrument and that he is authorized to execute the instrument as Executive Director of the Port of Port Townsend and acknowledged it to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. Dated: rek. ZI 20t3 �� NEy�V1 rt+tBJ/ pqr +41 Signature of Notary Public: 4412, A, I� u CSti� mss, r.. My Appointment Expires (1- ()5 -it- PORT OF PT/WSU EXTENSION LEASE AGREEMENT 13