The URL can be used to link to this page

Home My WebLink AboutPort of Port Townsend, Amendment No. 3 - 032816hz 1,`� LEASE ADMENDMENT #3 THIS LEASE AGREEMENT made this 8th 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 13' 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+..�*n; 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 Thiny-twoFid Dollars and y Fifty -Five Cents ($1 7�, 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 1311, 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) C ` PhW,,,MUP ey;-7efferson County Administrator APPROVED AS TO FORM 312-211 David Alvarez, Jefferson unty 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 FO 6� Port Attorney MARCH 2016 Consent 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: Philip Morley, C!'o�tdity Admdiistrator Date CONTRACT REVIEW FORM CONTRACT WITH: Port Of Port Townsend (Contractor) CONTRACT FOR: Cupola House Building Lease Amendment #3 TERM: 5 year lease COUNTY DEPARTMENT: Jefferson County Cooperative Extension For More Information Contact: Su Tipton Contact Phone: 360.379.569 10 x206 RETURN TO: Su Tipton, JC Cooperative Extension RETURN BY k 5, i AMOUNT: Revenue: Expenditure: Matching Funds Required: Source(s) of Matching Funds: Step 1: REVIEW BY RISK Review by: Date Reviewed: $1756.55 monthly PROCESS: $1,756.55 x Exempt from Bid Process Consultant Selection Process Cooperative Purchase Competitive Sealed Bid Small Works Roster Vendor List Bid RFP or RFQ APPROVED FORM Returned for revision (see comments) Comments: Step 2: REVIEW BY PROSECUTING ATTORNEY Review by: i P �� 1 i� [J T' i A f Q V --j, 7L fj Date Reviewed: t 'r Zo) ,, genAPPROVED AS TO FORM Returned for revision (See comments) ts: Step 3: DEPARTMENT MAKES REVISIONS Have contractor sign appropriate number of originals. Step 4: SUBMIT TO PROSECUTING ATTORNEY FOR FINAL SIGN OFF Step 5: SUBMIT TO BOCC FOR APPROVAL Submit original Contract and Agenda Request Form along with 6 copies of Contract and Review Form. Place "Sign Here" markers on all places the BOCC needs to sign. MUST be submitted to BOCC Office by 4:30 p.m. TUESDAY for the following Monday's agenda. (This form to stay with contract throughout the contract review process.)