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HomeMy WebLinkAbout1994-066 Sublease - Property MgmtC ITY OF ASHLAN HALL CITY ; ASHLAND, OREGON 97520 telephone (code 503) 482-3211 July 7, 1994 Katherine A. Abbett Ashland Prope~y Management, inc. 581 East Main Street P.O. Box 224 Ashland, OR 97520 RE: Sublease Between Ashland Property Management and the City of Ashland I have enclosed the original sublease between Ashland Property Management, Inc., as the sublessor, and the City of Ashland, as the sublessee, for the premises located at 274,5 North Main, Suite #1, Ashland. As stated in this agreement, this sublease begins on July 1, 1994, and ends on June 30, 1995. CITY A'I-rORNEY'S OFFICE Sharlene P. Stephens, ALS Enclosure c w/enclosure: Brian Almquist, City Administrator Jill Turner, Director of Finance Nan Franklin, City Recorder Steve Hall, Director of Public Works (s :\nbbett.ltr) FORM No. 812 - LEABE - BUSINESS PROPERTY. COPYRIGHT I~ S'rEVENS-NF. JS ~ PUBLISHING CO., PORTLANO, SUB- THIS INDENTURE OF LEASE, entered into this ....... .1..~..~ ........................day of ...............J..u...1.y. ....................19...9..~..., between ....... Ast~land...P~)t~e~rJ;y..Ma~a~eman~,..~rm .... ,..S~bLas.~or ................................................................................. ................................................................................................................................................................................................................... ~tffJxo~l~~K and ............... £±r_y... rff._~shland_,...S~h l_es~ ea ........................................................................... .................................................................................................................................................................................................................... ................................................................................................................................................................ , WITNESSETH: In consideration of the covenants herein, the lessor hereby leases unto the lessee those certain premises, as is, situated in the City of ............ A~h~n~ ................. , County of ........... ~J&ck~oJ~ ............. and State of .............. J~a~cm ................. , hereinafter called the premises, described as follows: 27 1/2 N. Main, Suite #1 Consisting of approximately 120 square feet To Have and to Hold the premises commencing with the ..... 1~.~. ...... day of ............. J.l,tl.y. ........................ 19..~.~.., and ending at midnight on the ...... .3.0.t.h.. day of .............J. ul~.e. ..........................19...9.5, for a rental of ~...~.~.QO.,.O.O. ....... for the whole term, which lessee agrees to pay, at ...... P.,.O.,...B.Q~...2Z4 .....o~...5~.i..E~..M~.Ik..SJ~. ........................................... City of ........ ..A~...h..~.~..n..(] ................. , State of ............ .O.E.~g0..~ ..... , at the following times and in the following amounts, to-wii: Monthly rent in the amount of $150.00, which includes utilities. Sublessee has first right of refusal to Sublease space at 27 ~;2 N. Main St., Suite #2, should it become available. In consideration of the leasin~ of the premises and of the mutual agreements herein contained, the parties agree as follows: LESSEE*S (1) The lessee accepts this lettin~ and agrees to pay to the order of the lessor the monthly rentals above staled for the ACCEPTANCE full term ot this lease, in advance, at the times and in the manner aforesaid. OP LEASE USE OF ('2a) The lessee shall use the premises during the term of this lease for the conduct of the following business; PREMISE8 ............................. Ci.1;-¥--- o -f----Ash-I: a rid -- o-~-f-ice s ............................................................................................................ ............................................................. and for no other purpose whatsoever without [essor's written con~ent. (2b] The lessee will not make any unlawful, improper or offensive use of the premises; the lessee will not suffer any strip or waste thereof; the lessee will not permit any objectionable noise or odor to escape or to be emitted from the premises or do anything or permit anything to be done upon or .about the premises in any way tending to create a nuisance; the lessee will not sell or permit to be sold any product, ~ubstance or service upon or about the premises, excepting such as lessee may be licensed by law to sell and as may be herein expressly permitted. (2c) The lessee will not allow the premises at any time to fall into such a state of repair or disorder as to increase the fire hazard thereon; the lessee will not install any power machinery on the premises except under the supervision and with written consent of the lessor; the lessee will not store gasoline or other highly combustible materials on the premises at any time; the lessee will not use the premises in such a way or for such a purpose that the tire insurance rate on the improvements on the premises is thereby increased or that would prevent the lessor from taking advantage of azzy rulings of any agency of the state in which the premises are situated, or which would allow the lessor to obtain reduced premium rates for long farm fire insurance policies. ('2d,) The lessee sha]l comply at lessee's own expense with all laws and regulations of any municipal, county, state, federal or other public authority respecting the use of the premises. These include, without limitation, all laws, regulations and ordinances pertaining to air and water quality, Hazardous Materials as herein defined, waste disposal, air' emissions, and other environmental matters. As used herein, Hazardous Material means any hazardous or toxic substance, material, or waste, including but not limited to those substances, materials, and waste listed in the U.S. Department of Transportation Hazardous Materials Table or by the U.S. Environmental Pro/action Agency as hazardous substances and amendments thereto, petroleum pro, ducts, or such other substances, materials, and waste that are or become regulated under any applicable local, state, or federal law. ('2e) The lessee shall regularly occupy and use the premises for the conduct of lessee's business, and shall not abandon or vacate the premises for more than ten days without written approval of lessor. (2f) Lessee shall not cause or permit any Hazardous MateriM to be brought upon, kept or used in or about the premises by lessee, its a~enls, employees, contractors, or invitees without the prior written consent o! lessor, which consent will not be unreasonably withheld so long as lessee demonstrates to lessor's reasonable satisfaction that such Hazardous Material is necessary or useful to lessee's business and will be used, kept, and stored in a mariner that will comply at all times with all laws regulating any such Hazardous Material so brought upon or used or kept on or about the premises. UTILITIES (3) The lessee shall pay for all heat, light, water, power, and other services or utilities used in the premises during the term of this lease. HEPXIRS AND (4a) The lessor shall not be required to make any repairs, alterations, additions or improvements to or upon the prem- IMPROVEMENTS ises during the term of this lease, except only those hereinafter specifically provided for; the lessee hereby agrees to maintain and keep the premises, including all interior and exterior walls and doors, heating, ventilating and coollng systems, interior wiring, plumbing and drain pipes to sewers or septic tank, in good order and repair during the entire term of this lease, at lessee's own cost and expense, art1 to replace all glass which may be broken or damaged during the term hereof in the windows and doors of the premises with glass of as ~ood or better quality as that now in use; it is further agreed that the lessee will make no alterations, additions or improvements to or upon the premises without the written consent of the lessor first being obtained. (,lb) The lessor agrees to make all necessary structural repairs to the building, includln~ exferlor walls, foundation, roof, gutters and downspouts, and the abutting sidewalks. The lessor reserves and at any and all times shall have the right to alter, repair or improve the buildlng of which the premises are a part, or to add thereto, and for that purpose at any time may erect scaffolding and all other necessary structures about and upon the premises and lessor and lessor's representatives, contractors and workers for that purpose may enter in or about the premises with such materials as lessor may deem necessary therefor, and lessee waives any claim to damages, including loss of business resulting therefrom. LESSOR'S (5) It shall be lawful for the lessor, the lessor's agents and representatives, at any reasonable time to enter into or upon RIGHT OF the premises for the purpose of examirenE into the condition thereof, or for any other lawful purpose. ENTRY' RIGHT OF (6) The lessee will not assign, transfer, pledge, hypothecate, surrender or dispose of this lease, or any interest herein, ASSIGNMENT sublet, or permit any other person or persons whomsoever to occupy the premises without the written consent of the lessor being first obtained in writing; this /ease is personal to lessee; lessee's interests, in whole or in part, cannot be sold, assigned, transferred, seized or taken by operation at law, or under or by virtue of any execution or legal process, attachment or pro- ceedlngs instituted against the lessee, or under or by virtue of any bankruptcy or insolvency proceedings had in regard to the lessee, or in any other manner, except as above mentioned. LIENS (7) The lessee will not permit any llen of any kind, type or description to be placed or imposed upon the improvements in wtu'ch the premises are situated, or any part thereof, or the land on which they stand. ICE, SNOW, (8) If the premises are located at street level, then at all times lessee shall keep the sidewalks in front of the premises DEBRIS free and clear of ice, snow, rubbish, debris and obstruction; and if the lessee occupies the entire building, the lessee will not permit rubbish, debris, ice or snow to accumulate on the roof of the building so as to stop up or obstruct gutters or downspouts or cause damage to the roof, and will save harmless and protect the lessor against any injury whether to lessor or to lessor's property or to any other person or property caused by lessee's failure in that regard. OVERLOADING (9) The lessee will not overload the floors of the premises in such a way as to cause any undue or serious stress or OF FLOORS strain upon the building in which the premises are located, or any part thereof, and the lessor shall have the right, at any time, to call upon any competent engineer or architect whom the lessor may choose, to decide whether or not the tloors of the premises, or any part thereof, are being overloaded so as to cause any undue or serious stress or strain on the building, or any part thereof, and the decision of the engineer or architect shall be final and binding upon the lessee; and in the event that it is the opinion of the engineer or architect that the stress or strain is such as to endanger or injure the building, or any part thereof, then and in that event the lessee agrees immediately to relieve the stress or strain, either by reinforcing the building or by lightening the load which causes such stress or strain, in a manner satistactory to the lessor. ADVERTISING (lO] The lessee will not use the outside walls of the premises, or allow signs or devices of any kind to be attached SIGNS thereto or suspended therefrom, for advertising or displaying the name or business of the lessee or for any purpose whatscaver without the written consent of the lessor; however. the lessee may make use of the windows of the premises to display lessee's name and business when the workmanship of such signs shall be of good quality and permanent nature; provided further that the lessee may not suspend or place within said windows or paint thereon any banners, signs, sign-boards or other devices in violation of the intent and meanin~ of this section. LIABILITY (ll) At all times during the term hereof, the lessee will, at the lessee's own expense, keep in effect and deliver to the INSURANCE lessor liability insurance policies in term, and with an insurer, satisfactory to the lessor. Such policies shall insure both the lessor and the lessee against all liability for damage to persons or property in, upon, or about the premises. The amount of such insur- ance shall be not less than $ 500, DO0, O0 for injury to one person, not less than $. 500,000.. (]0 for injuries to all persons arising out o[ any single incident, and not less than $. 500,.000. o 00 for damage to property, or a combined single limit of not less than $ 1,000,000.0D . It shall be the responsibility el lessor to purchase casualty insurance with extended coverage so as to insure any structure on the premises at~ainst damage caused by fire or the effects of fire (smoke, heat, means ot extinguishment, etc.), or any other means of loss. It shall be the responsibility of the lessee to insure all of the lessee's belongings upon the premises, of whatsoever nature, against the same. With respect to these policies, lessee shall cause the lessor to be named as an addi- tional insured party. Lessee agrees to and shall indemnify and hold lessor harmless against any and all claims and demands arisir~ from the negligence of the lessee, lessee's officers, agents, invitees and/or employees, as well as those arising from lessee's failure to comply with any covenant of this lease on lessee's part to be performed, and shall at lessee's own expense defend the lessor against any and all suits or actions arlsin~ out of such negligence, actual or alleged, and all appeals therefrom and shall satisfy and discharge any judgment which may be awarded against lessor in any such suit or action. FIXTURES (12) All partitions, plumbing, electrical wiring, additions to or improvements upon the premises, whether installed by the lessor or lessee, shall be and become a part of the building in which the premises are located as soon as installed and the property of the lessor unless otherwise herein provided. LIGHT (13) This lease does not grant any rights of access to light and air over the premises or any adjacent property. AND AIR DAMAGE BY (14) In the event of the destruction of the improvements in which the premises are located by fire or other casualty, CASUALTY, FIRE AND either party hereto may terminate this lease as of the date of fire or casualty, provided, however, that in the event DUTY TO REPAIR of damage to the improvements by fire or other casualty to the extent of 1-5 .......... per cent or more of the sound value thereof, the lessor may or may not elect to repair the same; written notice of lessor's election ~hall be given lessee within fifteen days after the occurrence of the damage; if notice is not so given, lessor conclusively shall be deemed to have elected not to repair; in the event lessor elects not to repair, then and in that event this lease shall terminate with the date of the damage; but i! the improvements in which the premises are located be but partially destroyed and the damage so occasioned shall not amount to the extent indicated above, or if greater than said extent and lessor elects to repair, as aforesaid. then the lessor shall repair the same with all convenient speed and shall have the right to take possession of and occupy, to the exclusion of the lessee, all or any part thefeet in order to make the necessary repairs, and the lessee hereby agrees to vacate upon request, all or any part thereof which the lessor may require for the purpose of making necessary repairs, and for the period of time between the day of such damage and until such repairs have been substantially completed there shall be such an abatement of rent as the nature o! the injury or damage and its interference with the occupancy of the premises by the lessee shall warrant,' however, if the premises be but slightly injured and the damage so occasioned shall not cause any material inter- ference with the occupation of the premises by lessee, then there shall be no abatement of rent and the lessor shall repair the damage with all convenient speed. WAIVER OF (15) Neither the lessor nor the lessee shall be liable to the other for loss arisin~ out of damage to or destruction of SUBROGATION RIGHTS the premises, or the building or improvement of which the premises are a part or with which they are connected, or the contents of any thereof, when such loss is caused by any of the perils which are or could be included within or in- sured against by a standard form of fire insurance with extended coverage, including sprinkler leakage insurance, if any. All such claims for any and all loss, however caused, hereby are waived. Such absence of liability shall exist whether or not the damage or destruction is caused by the negligence of either lessor or lessee or by any of their respective agents, servants or employees. It is the intention and agree- ment of the lessor and the lessee that the rentals reserved by this lease have been fixed in contemplation that both parties shall fully provide their own insurance protection at their own expense, and that both parties shall look to their respective insurance carriers for reimbursement of any such loss, and further, that the insurance carriers involved shall not be entitled to subrogation under any circum- stances against any party to this lease. Neither the lessor nor the lessee shall have any interest or claim in the other's insurance policy or policies, or the procads thereof, unless specifically covered therein as a joint assured. EMINENT (16) In case of the condemnation or purchase of all or any substantial part of the premises by any public or private DOMAIN corporation with the power of condemnation this lease may be terminated, elfactive on the date possession is taken, by either party hereto on written notice to the other and in that case the lessee shall not be liable for any rent after the termination date. Lessee shall not be entitled to and hereby expressly waives any right to any part of the condemnation award or purchase price. FOR SALE (17) During the period of .60 days prior to the date above fixed for the termination of this lease, the lessor AND FOR RENT herein may post on the premises or in the windows thereel signs of moderate size notifying the public that the premises SIGNS are "for sale" or "/or lease." DELIVERING UP (18] At the expiration of the lease term or upon any sooner termination thereot, the lessee will quit and deliver up PREMISES ON TERMINATION the premises and all [uture erections or additions to or upon the same, broom-clean, to the lessor or those having lessor's estate in the premises, peaceably, quietly, and in as good order and condition, reasonable use and wear thefeet, damage by fire, unavoidable casualty and the elements alone excepted, as the same are now in or hereafter may be put in by the lessor. ADDITIONAL COVENANTS Any reference to "Lessee" contained herein shall be construed to OR EXCEPTIONS mean "Sublessee". Any reference to "Lessor" contained herein shall be construed to mean Sublessor . Sublessee understands that the air conditioning unit is provided as part of this Sublease, but with no warranties express or implied as to its condition. Any and all maintenance of said unit to be solely at Sublessee's expense. ATTACHMENT PROVIDED, ALWAYS, and these presents are upon these conditions, that (1] it the lessee shall be in arrears in the BANKRUPT DEFAULT payment ot rent tor a period ot ten days alter the same becomes due, or (2) it the lessee shall tall or neglect to perform or observe any ot the covenants and agreements contained herein on lossee's part to be done, kept, perlormed and ob- served and such detault shall continue for ten days or more alter written notice ot such failure or neglect shall be given to lessee, or (3) if the lessee shall be declared bankrupt or insolvent according to law, or (4) it any assignment of lossee's propert), shall be made for the bonetit ot creditors, or ('5) it on the expiration ot this /ease lessee tails to surrender possession of the premises, the lessor or those having /essor's estate in the premises, may terminate this /ease and, lawtully, at lessor's option immediately or at any time thereafter, without demand or notice, enter into and upon the premises and every part theroot and reposses the same, and expel lessee and those claiming by, through and under lessee and remove lessee's efiects at lossee's expense, forclbly if necessary and store the same, all without being deemed guilty ot trespass and without prejudice to any remedy which otherwise might be used for arrears of rent or preceding breach ot covenant. Neither the terr~dnation ot this lease by forfeiture nor the taking or recovery ot possession ot the premises shall deprive lessor ot any other action, right, or remedy against lessee tor possession, rent or damages, nor shall any omission by lessor to enforce any forfeiture, right or remedy to which lessor may be entitled be deemed a waiver by lessor ot the right to entorce the performance of all terms and conditions ot this lease by lessee. In the event ot any re-entry by lessor, lessor may lease or relet the premises in whole or in part to any tenant or tenants who may be satisfactory to lessor, for any duration, and tor the best rent, terms and conditions as lessor may reasonably obtain. Lessor shall apply the rent received from any such tenant tirst to the cost ot retaking and telerring the premises, including remodeling required to obtain any such tenant, and then to any arrears ot rent and future rent payable under this/ease and any other damages to which lessor may be entitled hereunder. Any property which lessee leaves on the premises alter abandonment or expiration of the lease, or for more than ten days after any termination ot the lease by landlord, shall be deemed to have been abandoned, and lessor may remove and sell the property at public or private sale as lessor sees tit, without being liable tot any prosecution therotor or tor damages by reason thereof, and the net proceeds of any such sale shall be applied toward the expenses ot landlord and rent as atoresald, and the balance ot such amounts, if any, shall be held tor and paid to the lessee. HOLDING In the event the lessee tor any reason shall hold over alter the expiration ot this /ease, such holding over shall not be OVER deemed to operate as a renewal or e~tension of this /ease, but shall only create a tenancy at sufferance which may be terminated at will at any time by the lessor. ATTORNEY In case suit or action is instituted to enforce compliance with any of the terms, covenants or conditions of this lease, FEES AND COURT COS, TS or to collect the rental which may become due hereunder, or any portion thereof, the 1osin~ party agrees to pay the pre- vailing party's reasonable attorney tees incurred throughout such proceeding, including at trial, on appeal, and for post- judgment collection. The lessee agrees to pay and discharge all lessor's costs and expenses, including lessor's reasonable attorney's fees that shall arise trom entorcing any provision or covenants ot this lease even though no suit or action is instituted. Should the lessee be or become the debtor in any bankruptcy proceeding, voluntarily, involuntarily or otherwise, either during the period this lease is in eftoct or while there exists any outstanding obligation ot the lessee created by this /ease in favor ot the lessor, the lessee agrees to pay the lessor's reasonable attorney fees and costs which the lessor may incur as the result ot lessor's participation in such bankruptcy proceedings. It is understood and agreed by both parties that applicable federal bankruptcy law or rules of procedure may alloct, alter, reduce or nullify the attorney fee and cost awards mentioned in the preceding sentence. WAIVER Any waiver by the lessor of any breach of any covenant herein contained to be kept and portotreed by the lessee shall not be deemed or considered as a continuing waiver, and shall not operate to bar or prevent the lessor from declaring a forfeiture lot any succeeding breach, either ot the same condition or covenant or otherwise. NOTICES Any notice required by the terms of this lease to be given by one party hereto to the other or desired so to be given, shall be sufficient if in writing, contained in a sealed envelope, and sent first class mail, with postage fully prepaid, and it intended [or the lessor herein, then it addressed to the lessor at _.l~.00.,__ BOx---2-24-~----O~ ........ 581 E .... Hain...St..,..--kshland.,__.OR. 97520 ....................... and if intended for the lessee, then if addressed to the lessee at -20 g .. ~a.in --St--, ~Ashland.,-.0R..97520 ...........................................................................................................Any such notice shall be deemed conclusively to have been delivered to the addressee forty-eight hours after the deposit thereof in the U.S. Mail. HEIRS AND All rights, remedies and liabilities herein given to or imposed upon either of the parties hereto shall extend to, inure ASSIGNS to the benefit of and bind, as the circumstances may require, the heirs, successors, personal representatives and so as this lease is assignable by the terms hereof, to the assigns of such parties. In construing this lease, it is understood that the lessor or the lessee may be more than one person; that if the context so requires, the singular pronoun shall be taken to mean and include the plural, and that generally all grammatical changes shall be made, assumed and implied to make the provisions hereof apply equally to corporations and to individuals. IN WITNESS WHEREOF, the parties have executed this lease on the day and year first hereinabove written, any corporation signature being by authority of its Board of Directors. Ashland Property Management, Inc. ..Bye' ..... KaLher~ine..A~__Abhe.tt .......................................... The publisher strongly recommends that both the lessor and the lessee become familiar with the Americans with Disabilities Act of 1990, Public Laws 101-336. The Act may impose certain duties and responsibilities upon either or both parties to this lease. These duties and responsibilities may include but not be limited to the removal of certain architectural barriers and ensuring lhat disabled persons are not denied the opportunity to benefit from the same goods and services as those available to persons without disabili- ties. Under the Act, prohibition against discrimination applies to any person who is the owner, operator, lessor, or lessee of a place of public accommodation.