HomeMy WebLinkAbout032816_ca04Consent Agenda
Regular Agenda
JEFFERSON COUNTY
BOARD OF COUNTY COMMISSIONERS
AGENDA REQUEST
TO: Board of Commissioners
Philip Morley, County Administrator
FROM: Su Tipton
DATE: March 28, 2016
RE: The Cupola House Lease Amendment #3
STATEMENT OF ISSUE: Port Of Port Townsend lease increase for the Cupola House,
Lease increase is $24.25. Provisions for Jefferson County Cooperative Extension to be able
terminate lease.
ANALYSIS: As per original lease agreement item 3 states that every three years the
prevailing fair market rental rate maybe adjusted for comparable commercial and/or industrial
property in the Western Washington area. Provisions to terminate lease and relocate upon
reasonable notice to Lessee, for any reason.
FISCAL IMPACT: $303.00 Annually
RECOMMENDATION: Recommend that the Commissioners please sign this lease
Amendment #3.
DEPARTMENT CONTACT: Su Tipton, 360.379.5610 x206
REVIEWED BY:
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Philip Morley, Coidity Adm istrator Date
LEASE ADMENDMENT #3
THIS LEASE AGREEMENT made this 81h day of March 2016, 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, pm behalf of
Jefferson County Cooperative Extension, a state university and existing under the laws of the State of
Washington, hereinafter referred to as "Lessee".
WITNESSETH:
1. On February 13th, 2013, the parties entered into a Building Lease Agreement concerning a 2,453
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 13th, 2013 Building Lease Agreement is hereinafter referred to as the Original Lease".
2. Paragraph #3 of the Original Lease speaks to the rent for the premises, and established a
monthly rental sum of $1,700.00 plus all applicable taxes. Paragraph #3 also stated that the
rental rate beginning in year two and annually though out the term of the lease would 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. On March 13, 2015, the parties agreed to Lease Amendment #1, which amended Paragraph #3
of the Original Lease to reflect a new rental rate of $1,732.30, consistent with the December
2014 Consumer Price Index for Seattle -Tacoma -Bremerton for all urban consumers (CPI -U).
4. Consistent, with the CPI -U increase provision reference in Paragraph #3 of the Original Lease, as
modified by Lease Amendment #1, the parties are agreed that Paragraph #3 of the Original
Lease, amended, should be further amended to explicitly reflect a new rental rate of $1756.55,
as adjusted by the December 2015 Consumer Price Index for Seattle -Tacoma -Bremerton for all
urban consumers (CPI -U).
5. Lessee cannot predict what budgetary constraints it will face in future years and one possible
result of such budgetary constraints may be that Lessee needs to relocate its offices so that its
expenses match its revenues. In light of this concern, the parties agree that Lessee may, upon
reasonable notice to the Lessor, terminate this Lease for any reason.
NOW, THEREFORE:
Effective March 8, 2016 Paragraph #3 of the Original Lease Agreement approved on the 13th of
February, 2013, and as amended on March 13, 2015 through Lease Amendment #1, shall be further
amended to read as follows (note: deleted text shown in S*Fts; 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 Thintwo Fiftv-Six Dollars and Thhty Fiftv-Five Cents ($1,732 1756.55) 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 month of the lease term, and shall be payable at such place as the Port may
PORT OF PT/JEFF CO
LEASE AMENDMENT#3 MARCH 2016
hereinafter designate. The rental rate may be adjusted every three years to the prevailing fair
market value rental rate than prevailing for the 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 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 in the prior year.
Section 22, entitled "TERMINATION BY PORT" is hereby amended to read in its entirety as follows:
22. Termination: 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 upon by Lessee and the Port's Executive Director. The Lessee
may, upon not less than sixty (60) days' written or email notice to the Port, terminate this Lease
for any reason. Should such written notice of termination be sent by Lessee to the Port, the
Lessee agrees that the Port shall be entitled to retain all rent paid for the month during which
the Lessee's termination becomes effective. Upon termination of the Lease by the Lessee in
conformance with this Section, the Lessee may, but is not required to, enter into a new Lease
with the Port at a location or premises owned by the Port.
PORT OF PT/JEFF CO
LEASE AMENDMENT#3 MARCH 2016
All other terms and conditions of the Original Lease Agreement dated February 131h, 2013 shall remain
in effect.
Approved this 8th day of March, 2016, by the Port of Port Townsend and duly authenticated by the
signature of the Executive Director and executed by the appropriate person from Jefferson County.
LESSEE (JEFFERSON COUNTY)
Philip Morley, Jefferson County Administrator
APPROVED AS TO FORM
I I
;A
David Alvarez, Jefferson County DPA
PORT OF PORT TOWNSEND
Larry Crockett, Executive Director
PORT OF PT/JEFF CO
LEASE AMENDMENT #3
Kathleen Kler, County Commissioner
ATTESTS
Carolyn Avery
APPROVED AS TO FORM
Port Attorney
MARCH 2016