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HomeMy WebLinkAboutLease Agreement with College of Western Idaho for Office Building at 33 E. Idaho 102709LEASE AGREEMENT FOR 33 EAST IDAHO STREET Meridian, Idaho between The City of Meridian as Landlord and The College of Western Idaho as Tenant LEASE AGREEMENT (Office Building) THIS LEASE AGREEMENT (this "Lease") is entered into effective this day of , 2009, by and between The City of Meridian ("Landlord") and the College of Western Idaho ("Tenant"). 1. Basic Lease Provisions. For purposes of this Lease, the following terms have the following definitions and meanings: 1.1 Landlord's Address (For Notices): City Clerk Meridian City Hall 33 East Idaho Meridian, Idaho 83642 1.2 Tenant's Address for Notices: The College of Western Idaho 1.3 Premises: The Building located at 33 East Idaho Street, Meridian Idaho, including all of the approximately 8,000 square feet of usable first floor internal space and 16 parking spaces to support Tenant's employees and invitees. The basement of the Building is not included as part of the leased Premises. The Cox Memorial public park and shelter at the corner of Idaho Street and Meridian Road is not included as part of the leased Premises. 1.4 Term: The Primary Term and Option Periods (if validly exercised according to the terms of this Lease) set forth below are collectively referred to in this Lease as the "Term." 1.4.1 Primary Term: 36 Lease Months. 1.4.2 Option Periods: Two Option Periods of 12 months each 1.5 Rent Commencement Date (or "Commencement Date"): Upon occupancX 1.6 Occupancy Date: The day of 2009. 1.7 Expiration Date: At the end of the primaryterm and any o_ t~ ep rinds. 1.8 Initial Base Rent: $1 per year, plus cost of utilities. Lease Agreement for 33 East Idaho Street page 1 1.9 Security Deposit: None. 1.10 Permitted Use: Administrative offices and other associated uses. 1.11 Defined Terms: The headings provided in this Section 1 in bold print are used in this Lease as defined terms. This Section 1 represents a summary of the basic terms and definitions of this Lease. Tn the event of any inconsistency between the terms contained in this Section 1 and any specific provision of this Lease, the terms of the more specific provision shall prevail. 2. Consideration. In consideration of the payment of rent and the performance of the covenants and agreements hereinafter set forth, Landlord hereby leases to Tenant and Tenant hereby leases from Landlord the Premises, together with and subject to all conditions, restrictions, obligations, rights, privileges, easements and appurtenances thereto, or any other easement(s), use or restriction agreements for the Building as have been or are hereafter executed by Landlord, including all amendments thereto, which cover the Premises. 3. Rent. Beginning with the Rent Commencement Date, Tenant shall be responsible for payment of rent as established in section 1. Cost of utilities shall be paid by Tenant pursuant to section 10.3. 4. Term. 4.1 Primary Term. The Term shall be for the period designated in Section 1 commencing on the Commencement Date, and ending on the Expiration Date, unless extended pursuant to Section 4.2 below. Upon the request of Landlord, Tenant shall execute a written acknowledgment of the Commencement Date and/or Expiration Date. 4.2 Option Periods. Providing Tenant is not in default at the time Tenant exercises its option to extend or at the commencement of the applicable Option Period(s), Tenant shall have the option to extend the Primary Term for the option period(s) set forth in Section 1(the "Option Periods"). The rent for any applicable option period shall continue to be $1 per year, plus the cost of utilities. Lease Agreement for 33 East Idaho Street page 2 5. Uses. 5.1 General Use. The Premises shall be used only for the use set forth in Section 1 ("Permitted Use") and for no other use without the prior written consent of Landlord which may be withheld in Landlord's unfettered discretion. Tenant shall not commit or allow to be committed any waste upon the Premises, or any nuisance or other act in or about the Premises that disturbs the quiet enjoyment of any other tenant in the Building. Tenant shall comply with all laws and regulations relating to its use or occupancy of the Premises or of the Common Areas. Tenant shall observe such rules and regulations for the Building as may be adopted by Landlord. 5.2 No Hazardous Substances. Tenant agrees not to use, store or deposit any substance that is hazardous or dangerous to person, property or the environment (or any similar substance) as now or hereafter defined by or determined pursuant to any applicable law or regulation ("Hazardous Substance") in, on or about the Premises in violation of applicable law, and Tenant shall indemnify and hold Landlord harmless against any liability, damages, costs, loss or claim therefore, including attorneys' fees incurred in connection therewith, arising from or related to the presence of any Hazardous Substance in, on or about the Premises, which presence was caused by Tenant, its agents, employees, subleases or anyone otherwise associated with Tenant. 5.3 Insurance Risks. Tenant will not do or permit to be done any act or thing upon the Premises, the Building or the Common Areas which would (a) jeopardize or be in conflict with fire insurance policies covering the Building and fixtures and properly in the Building; (b) increase the rate of fire insurance applicable to the Building to an amount higher than it otherwise would be for the general office use of the Building; or (c) subject Landlord to any liability or responsibility for injury to any person or persons or to property by reason of any business or operation being carried on upon the Premises. 6. Assignment and Subletting. Tenant shall not, without first obtaining Landlord's written consent which may be withheld in Landlord's unfettered discretion: (1) sell, assign, mortgage, or transfer this Lease (or any interest therein); (2) sublease all or any portion of the Premises; or (3) allow the use or occupancy of the Premises by anyone other than Tenant. No assignment or sublease shall relieve Tenant of any liability under this Lease. Landlord's consent to any assignment or sublease shall not operate as a waiver of the necessity for consent to any subsequent assignment or sublease. This Lease shall not be assigned by operation of law. 7. Care of Premises. Tenant shall keep the Interior of the Premises in a neat, clean and sanitary condition and shall at all times preserve them in good condition and repair, ordinary wear and tear excepted. 8. Surrender of Premises; Removal of Property. Upon expiration or termination of the Lease Term, whether by lapse of time or otherwise (including any holdover period), Tenant at its expense shall: (1) remove Tenant's goods and effects and those of all persons claiming under Lease Agreement for 33 East Idaho Street page 3 Tenant, (Z) repair and restore the Premises to a condition as good as received by Tenant from Landlord or as thereafter improved, reasonable weaz and teaz excepted, and (3) promptly and peacefully surrender the Premises (including surrender of all improvements installed in the Premises by Landlord or Tenant, except Tenant's trade fixtures that do not become part of the Building). Any property left on the Premises after the expiration or termination of the Lease Term shall be deemed to have been abandoned and to have become the property of Landlord to dispose of as Landlord deems expedient. Tenant shall be liable for all costs associated with the disposal of such property. Tenant hereby waives all claims for damages that may be caused by Landlord's reentering and taking possession of the Premises or removing and storing Tenant's property as herein provided, and Tenant shall indemnify and hold harmless Landlord therefrom. No such reentry shall be considered or construed to be a forcible entry. 9. Condition of Premises; Alterations. 9.1 Tenant's Improvements. Prior to making any improvements to the Premises, Tenant shall provide plans to Landlord and procure written approval of Landlord. Improvements shall be at Tenant's sole cost, and shall be performed in a good and workmanlike manner in compliance with all applicable laws, codes and regulations, and all materials used shall be of a quality compazable to those in the Premises and the Building. All improvements (except Tenant's trade fixtures that do not become a part of the Building) shall remain in and be surrendered with the Premises at the expiration or sooner termination of this Lease. 9.2 Alterations. Tenant shall make no additions, changes, alterations or improvements ("Work") to the Premises other than the Work approved by Landlord pursuant to section 9.1. 10. Services and Maintenance. 10.1 Basic Services. The mechanical, electrical, cooling, heating and ventilation systems on the premises aze provided in an "as-is" condition with no warranty as to their reliability or fitness for use. 10.2 Maintenance. Tenant shall repair and maintain the structural portions of the Building, including the basic plumbing, air conditioning, heating and electrical systems, the exterior of the Building, the pazking lot and the landscaping. 10.3 Basic Utilities. Water, sewer, electricity, natural gas, gazbage and recycling services are available to the Premises and the cost of such utility service, including costs based on consumption, shall be the expense of Tenant pursuant to section 1.8 of this agreement. Tenant shall setup accounts with the utility providers effective upon the commencement date of this agreement. Tenant shall pay all utility changes to the providers according to the invoice due date. Tenant's failure to pay utility changes when due shall constitute an event of default pursuant to section 16 of this agreement. Lease Agreement for 33 East Idaho Street page 4 10.4 Additional Utilities. Tenant shall purchase all other utility services, including but not limited to telephone, cable and television services desired by Tenant from the utility or municipality providing such service, and shall pay for such services when such payments are due. 11. Entry and Inspection. Landlord at all reasonable times (and at any time in case of emergency) may enter the Premises for the purpose of inspection, cleaning, repairing, altering or improving the Premises or the Building subject to Tenant's reasonable security requirements. Landlord shall have the right at reasonable times to enter the Premises for the purpose of showing the Premises to any prospective purchasers, mortgagees or tenants of the Building. 12. Damage or Destruction. 12.1 Damage and Repair. In case of damage to the Premises or the Building by fire or other casualty, Tenant immediately shall notify Landlord. If the Building is damaged by fire or any other cause to such extent that the cost of restoration, as reasonably estimated by Landlord, will equal or exceed thirty percent (30%) of the replacement value of the Building (exclusive of foundations) prior to the occurrence of the damage, or if insurance proceeds sufficient for full restoration are unavailable for any reason, then Landlord no later than the sixtieth (60th) day following the damage may give Tenant a notice of election to terminate this Lease. If the cost of restoration as estimated by Landlord shall amount to less than thirty percent (30%) of said replacement value of the Building and insurance proceeds sufficient for restoration are available, then Landlord shall restore the Building and the Premises with reasonable promptness, subject to delays beyond Landlord's control, and Tenant shall have no right to terminate this Lease. To the extent that the Premises are rendered untenantable, Rent shall proportionally abate during the period of such untenantability, unless such damage resulted from or was contributed to directly or indirectly by the act, fault or neglect of Tenant, Tenant's officers, contractors, subcontractors, agents, employees, invitees or licensees. 12.2 Business Interruption; Property of Tenant. No damages, compensation or claims shall be payable by Landlord for inconvenience, loss of business or annoyance arising from any repair or restoration of any portion of the Premises or the Building. Landlord will not carry insurance of any kind on any property of Tenant, including inventory, equipment, floor, ceiling and wall coverings, furniture and trade fixtures, and any improvements to the Premises that are paid for by Tenant and Landlord shall not be obligated to repair any damage thereto or replace the same. 13. Indemnification and Waiver of Liability. Tenant shall indemnify, hold harmless and defend Landlord from and against all liabilities, damages, suits, obligations, fines, losses, claims, actions, judgments, penalties, charges, costs, or expenses, including, without limitation, attorneys' and other professional fees and disbursements, in conjunction with any loss of life, personal injury and/or property damage arising out of or relating to the occupancy or use by Tenant of any part of the Premises or the Building occasioned wholly or in part by any act or omission of Tenant or its officers, contractors, subcontractors, licensees, agents, servants, employees, guests, invitees or Lease Agreement for 33 East Idaho Street page 5 visitors, or any assignee or sublessee or any other party for whom Tenant would otherwise be liable. Landlord shall not be liable for any loss or damage to persons or property sustained by Tenant or other persons, which maybe caused by theft, or by any act or neglect of any tenant or occupant of the Building or any other third parties, or Landlord, except for Landlord's willful misconduct or gross negligence. 14. Insurance. 14.1 Liability Insurance. Tenant, at its own expense, shall keep and maintain in full force and effect a policy of commercial general liability insurance including a contractual liability endorsement covering Tenant's obligations under Section 14, insuring Tenant's activities upon, in and about the Premises and the Building against claims of bodily injury or death or property damage or loss with a limit of not less than Five Hundred Thousand Dollars ($500,000) combined single limit per occurrence and in the aggregate (per policy year) of $1,000,000.00. Landlord shall be an additional insured in the foregoing insurance policy. 3.2 Tenant's Property Insurance. Tenant's property insurance shall be at Tenant's option and expense. 14.3 Landlord's Insurance. Landlord shall procure and maintain during the Term, Fire, Windstorm, in an amount not less than one hundred percent (100%) of the insurable value above the foundations or as currently in effect. 14.4 Insurance Policy Requirements. All insurance required under this section shall be with companies qualified to do business in the State of Idaho. Each insurance policy shall provide that it is not subject to cancellation or material alteration except after thirty (30) days prior written notice to Landlord and 15. Signs. Tenant, at its sole expense, may place a sign or signs on the exterior of the building and/or the exterior of Tenant's door to identify the business location of Tenant and any approved subtenants. All signs must be compliant with all applicable codes and regulations. 16. Events of Default. Each of the following shall be deemed a default by Tenant and a material breach of this Lease: 16.1 Failure by Tenant to pay when due any Rent hereunder if such failure shall continue for a period of thirty (30) days after written notice thereof has been given to Tenant; or 16.2 Failure by Tenant to perform or observe any of the other terms, covenants, conditions, agreements or provisions of this Lease if such failure shall continue for a period of thirty (30) days after written notice thereof has been given to Tenant; provided, if any such failure cannot reasonably be cured within thirty (30) days then Tenant shall not be deemed to be in default if Tenant commences to cure such failure within a reasonable time and for as long as Tenant is diligently prosecuting the cure. Lease Agreement for 33 East Idaho Street page 6 17. Landlord Remedies for Tenant Default. If any default occurs hereunder, Landlord may, at any time thereafter and without waiving any other rights hereunder, do one or more of the following: 17.1 Terminate this Lease, by written notice on the earliest date permitted by law or on any later date specified in such notice, in which case Tenant's right to possession of the Premises will cease and this Lease will be terminated, except as to Tenant's liability; 17.4 Without further demand or notice, reenter and take possession of the Premises or any part of the Premises, repossess the same, expel Tenant and those claiming through or under Tenant, and remove the effects of both or either, using such force for such purposes as may be necessary, without being liable for prosecution, damage or otherwise and without being deemed guilty of any manner of trespass, and without prejudice to any remedies for arrears of Rent or other amounts payable under this Lease or as a result of any preceding breach of covenants or conditions. 18. Landlord's Default. In the event of any default in the obligation of Landlord under this Lease, Tenant will deliver to Landlord written notice listing the reasons for Landlord's default and Landlord will have ~ (30) days following receipt of such notice to cure such alleged default or, in the event the alleged default cannot reasonably be cured within such period, to commence action and proceed diligently to cure such alleged default. 19. Holdover. If Tenant shall, with the written consent of Landlord, hold over beyond the expiration of the Term, or if Landlord shall so notify Tenant at any time upon or after the expiration of the Term, such tenancy shall be deemed amonth-to-month tenancy that may be terminated as provided by applicable state law. 20. Notices. All notices under this Lease shall be in writing and delivered in person or sent by registered or certified mail, return receipt requested, postage prepaid, or sent by recognized overnight courier to Landlord and to Tenant at the addresses set forth in Section 1 (except that, after the Lease commences, any such notice maybe so mailed or delivered by hand to Tenant at the Premises), or to such other addresses as may from time to time be designated by any such party in writing. Notices mailed as aforesaid shall be deemed given at the earlier of three (3) days after the date of such mailing or upon the date of receipt. 21. Costs and Attorneys' Fees. If Tenant or Landlord shall bring any action for relief against the other, declaratory or otherwise, arising out of this Lease, including any suit by Landlord for the recovery of rent or possession of the Premises, the losing party shall pay the prevailing party for all reasonable attorneys' fees (including attorneys' fees on appeal) and costs (including court costs and disbursements) which shall be deemed to have accrued on the commencement of such action and shall be paid whether or not such action is prosecuted to judgment. IN WITNESS WHEREOF, the Landlord and the Tenant have signed their name and affixed their seals the day and year first above written. Lease Agreement for 33 East Idaho Street page 7 TENANT: COLLEGE OF WESTERN IDAHO By: Dr. Berton L. Glandon Its: President LANDLORD: CITY OF MERIDIAN By: Tammy de Weerd Its: Mayor ATTEST: Jaycee L. Holman City Clerk Lease Agreement for 33 East Idaho Street page 8 EXHIBIT "A" Tenant's Improvements August 3, 2005 City Of Meridian 33 E. Idaho St. Meridian, ID 83642 Re: Tenant improvements to old Farmers & Merchants Bank building This bid includes the following items: I) Wall patch in lobby area -north wall 2) Carpet allowance of $600.00 in space where teller lines were 3) Remove and replace 30 lineal feet of office divider walls 4} Two new offtce doors 5) One HV AC vent in the center office -south wall 6) Paint new office wails and patch area of lobby Bid Total :............................................ . ....................$4,200.00 l~ ~~ f~~t-Ct~z,~.---- Walt Morrow Walt Morrow Construction ~~~~~~ AUG 0 3 2~5 Lease Agreement for 33 East Idaho Street page 9 CITY OF MERIDIAN RESOLUTION NO. 09- BY THE CITY COUNCIL: BIRD, HOAGLUN, ROUNTREE, ZAREMBA A RESOLUTION APPROVING A LEASE AGREEMENT BETWEEN THE CITY OF MERIDIAN (LESSOR) AND THE COLLEGE OF WESTERN IDAHO (LESSEE) FOR APPROXIMATELY 8,000 SQUARE FEET OF OFFICE SPACE AT THE FORMER MERIDIAN CITY HALL, 33 EAST IDAHO, MERIDIAN IDAHO TO BE USED FOR ADMINISTRATIVE OFFICES; AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AND ATTEST SAID AGREEMENT ON BEHALF OF THE CITY OF MERIDIAN; AND PROVIDING AN EFFECTIVE DATE. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF MERIDIAN, IDAHO WHEREAS, the City of Meridian has approximately 8,000 square feet of unused office space at the Former Meridian City Hall that is not currently used for City business; and, WHEREAS, the City of Meridian has no immediate plans to use the Former City Hall for City business. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF MERIDIAN, IDAHO AS FOLLOWS: SECTION 1. The approximately 8,000 square feet of space in the Former Meridian City Hall described in the lease agreement between the College of Western Idaho and the City of Meridian is not otherwise needed for City purposes. SECTION 2. That the terms of the agreement (attached hereto and incorporated herein) between the College of Western Idaho and the City of Meridian are just and equitable, and the same is hereby approved as to both form and content. SECTION 3. That the Mayor and City Clerk be, and they hereby are, authorized to respectively execute and attest said Lease Agreement for and on behalf of the City of Meridian. SECTION 4. This Resolution shall be in full force and effect immediately upon its adoption and approval. ADOPTED by the City Council of the City of Meridian, Idaho, this day of 2009. APPROVED by the Mayor of the City of Meridian, Idaho, this day of 2009. APPROVED: ATTEST: Mayor Tammy de Weerd By: (SEAL) Jaycee L. Holman, City Clerk