HomeMy WebLinkAbout2011-323 Lease Agrmt - 5 B Street LEASE AGREEMENT
THIS LEASE AGREEMENT is made and entered into this day of D. �/ ,
2011, by and between MICHAEL H. YOUNG and JACQUELYN J. YOUNG, Trustees of THE
MICHAEL H. & JACQUELYN J. YOUNG REVOCABLE TRUST, and JOHN C.
SCHWENDENER and PATTY G. SCHWENDENER, husband and wife, hereinafter referred to
as "Lessor", and CITY OF ASHLAND, an Oregon municipal corporation, hereinafter referred to
as "Lessee".
RECITALS :
A. Lessor is the owner of commercial real property located at 5 `B" Street, Ashland,
Oregon. The real property includes a small masonry block shop building located in a parking lot.
B. Lessee desires to lease the non-exclusive use of the parking lot from Lessor.
C. The masonry block building and a portion of the parking lot are presently being rented
and used by Avista Corporation hereinafter referred to as "Avista".
For the reasons recited above and in consideration of the following mutual promises and
covenants, the parties hereto agree as follows:
1. LEASE: Lessor hereby leases to Lessee, and Lessee hereby rents from Lessor, the
non-exclusive use of the parking area located at 5 "B" Street, Ashland, Oregon. Lessee
acknowledges that its use of the parking area will be shared with Avista. Avista will have the
exclusive right to use the masonry block building located on the real property and that portion of
the parking lot sufficient to park one Avista utility truck and for the existing porta-potti. Avista
-1- LEASE AGREEMENT
Law Offices of
GRANTLAND,BL ODGETT,SHAW&ABEL,LLP
1818 E.McAndrews Rd.
Medford,OR 97504
(541)773-6855
will have right of ingress to and egress from the entrance located on `B" Street to the parking
area and to the masonry block building and porta-potti. Lessee shall have continuous,
unencumbered access to all other portions of the parking lot not specifically used by Avista.
2. TERM: This Lease shall commence as of October 1, 2011 and shall terminate on
September 30, 2012. However, Lessee shall have the right to extend this Lease, on a monthly
basis, for a period of four (4) months, up to and including January 31, 2013, for the same
monthly rental amount of$1,000.00 per month.
3. RENTAL: As rental for said property, Lessee covenants and agrees to pay the sum of
one thousand dollars ($1,000.00) commencing as of October 1, 2011, and the sum of$1,000.00
on or before the first day of each and every month thereafter. Lessee agrees that out of each
monthly payment of$1,000.00 Lessee agrees to make a payment of$500.00 directly to
Michael H. Young and Jacquelyn J. Young, Trustees of the Michael H. & Jacquelyn J. Young
Revocable Trust, P. O. Box 276, Jacksonville, Oregon 97530 and to John C. and Patty G.
Schwendener, at 25 Windsor Avenue, Medford, OR 97504. .
4. USE OF PREMISES: Lessee represents it intends to use the premises to facilitate the
Ashland Creek Riparian Bank Restoration Project. The use of the premises will be for storage of
materials and equipment for this project and for Lessee's maintenance activities. This will also
allow Lessee access to Ashland Creek for the project. Lessee agrees that it will make no use of
the premises which is prohibited by law or which constitutes a nuisance, public or private.
-2- LEASE AGREEMENT
Law Offices of
GRANTLAND,BLODGETT,SHAW&ABEL.LLP
1818 E.McAndrews Rd.
Medford,OR 97504
(541)773-6855
5. ASSIGNMENT AND SUBLEASE: Lessee shall not assign or transfer this Lease or
sublet said premises or any portion thereof without first obtaining the written consent of Lessor,
which consent will not be unreasonably withheld.
6. UTILITIES: Lessee agrees to pay all costs of utilities and other services rendered to
said premises promptly as the same become.
7. REPAIR AND FENCING: Lessee accepts the leased premises consisting of the
parking lot and fencing in its present condition. Lessee represents this will be suited for its
intended purpose. Lessee will be responsible for all repairs to the premises which are attributable
to it, its agents, employees, contractors or any parties acting under its control and/or direction.
Lessee will have the right to remove portions of the fence in order to obtain access to
Ashland Creek. However, Lessee acknowledges that it is in its interest and in the interest of
Avista to maintain a secured parking area. At the conclusion of each work day Lessee will install
a temporary fence or other structure to prevent access by third parties to the premises. Prior to
termination of this Lease Lessee agrees to restore the fence and property to its original condition,
to the satisfaction of the Lessor.
S. TAXES AND INSURANCE: Lessor shall pay all real property taxes promptly as the
same become due and payable.
Lessee agrees to insure the premises against all risks of liability in an amount not less
than $2,000,000.00 as more fully provided in paragraph 10 below. Lessee shall provide to
Lessor evidence of insurance as of the date hereof and keep same in full force and effect so long
-3- LEASE AGREEMENT
Law Offices of
GRANTLAND,BLODGETT,SHAW&ABEL,LLP
1818 E.McAndrews Rd.
Medford,OR 97504
(541)773-6855
as Lessee is in possession of the premises. All required insurance shall name all Lessors,
Michael H. Young and Jacquelyn J. Young, Trustees of The Michael H. &Jacquelyn J. Young
Revocable Trust and John C. and Patty G. Schwendener, as additional insureds and loss payees,
as applicable.
Lessee shall maintain insurance on is own personal property to be located on the premises
such as its trucks and equipment.
9. SUBROGATION RIGHTS: Lessor and Lessee desire to release each other from
liability for damages occasioned to the property of the other which might be incident to a fire or
any of the perils covered by fire, liability and/or extended coverage insurance policies which the
parties have or may hereafter acquire, and, therefore, each of the parties hereby releases the other
party and their employees for any loss or damage to property resulting from fire, explosion, or
other casualty enumerated in the standard fire insurance policy with extended coverage, and/or
liability policy, irrespective of whether the limits thereof are sufficient to fully cover such loss or
damage, and each of the parties hereby waives the subrogation rights of their insurance carrier
providing coverage against such loss or damage. Further, each of the parties agrees to take any
and all steps which may be required to inform their carriers of this provision and to have
endorsements, if necessary, placed on the respective policies of insurance to carry into effect the
provisions of this paragraph.
10. INDEMNIFICATION AND LIABILITY INSURANCE: Lessee will indemnify and
hold Lessor, and its principal owners, Michael H. Young and Jacquelyn J. Young, Trustees of the
-4- LEASE AGREEMENT
Law offices of
GRANTLAND,BLODGETT,SHAW&ABEL,LLP
1818 E.McAndrews Rd.
Medford,OR 97504
(541)773-6855
Michael H. &Jacquelyn J. Young Revocable Trust and John C. and Patty G. Schwendener,
harmless from any and all expenses, fines, claims, damages, suits, and actions arising out of or in
any way connected with the use and occupancy of the premises and from all costs, loss, expenses,
and damages that may or might occur to any employee or employees of Lessee, or the public in
general, in, upon, or about the premises; and to provide comprehensive public liability and
property damage insurance, with a cross liability clause and endorsement, insuring Lessor,
Lessees, Michael H. Young and Jacquelyn Young, Trustees of the Michael H. & Jacquelyn J.
Young Revocable Trust and John C. and Patty G. Schwendener, and to keep them insured against
all legal liability for damages to persons or property caused by the ownership, maintenance, use
or occupancy of the premises or by reason of the conduct of any business carried on therein in an
insurance company or companies to be approved by Lessor, in an amount not less than
$2,000,000.00 for bodily injury and property damage. Lessor, Michael H. Young and
Jacquelyn J. Young, Trustees of the Michael H. &Jacquelyn J. Young Revocable Trust and
John C. & Patty G. Schwendener, shall be named as additional insureds in such policy of
insurance, and a memo copy of the policy shall be furnished by Lessee to Lessor.
11. PRIOR TENANT: Lessee acknowledges that the masonry block building and a
portion of the parking lot are presently occupied by Avista. Lessee understands and agrees that
as a result they will have the non-exclusive use of the premises with Avista. Lessee acknow-
ledges that Avista will have exclusive use of the masonry block building and so much of the
parking lot as is necessary to house a porta-potti and one Avista utility truck. Avista will be
-5- LEASE AGREEMENT
Law Offices of
GRANTLAND,BLODG=,SHAW&ABEL,LLP
1818 E.McAndrews Rd.
Medford,OR 97504
(541)773-6855
allowed unfettered access to the real property in order to use the building, the porta-potti and to
park one utility truck. Lessee acknowledges it will be necessary for Lessee to cooperate with
Avista for Lessee to use the real property for its intended purpose. Lessee acknowledges it must
provide its own porta-potti or make a separate arrangement with Avista for use of the Avista
porta-potti. Lessee also agrees to cooperate with Avista so that each party will keep the premises
locked when not in use and each party can maintain its own lock on the premises without
hindering the other party.
12. LESSEE'S COVENANTS: Lessee covenants and agrees with Lessor as follows:
(A) That it will, at its cost and expense, maintain the premises in a safe, clean,
and sanitary condition. Garbage services must be maintained so that all refuse accumulating
from Lessee's operation, shall be placed in approved garbage containers promptly.
(B) That it will keep the said property free and clear of all liens and
encumbrances of every kind and nature.
(C) That it will comply with all requirements of all municipal, state, and federal
authorities now in force or which may hereafter be in force pertaining to the use and occupancy
of the leased premises.
(D) That it grants permission to Lessor, its agents and representatives, to enter
upon said premises at all reasonable times for the purpose of inspecting the same.
-6- LEASE AGREEMENT
Law Offices of
GRANTLAND,BLODGETr,SHAW&ABEL,LLP
1818 E.McAndrews Rd.
Medford,OR 97504
(541)773-6855
(E) That it will, upon the expiration of this Lease or sooner termination thereof,
deliver up said premises to Lessor peaceably and quietly and in as good condition and repair as
the same now are, or may hereafter be placed in, ordinary wear and tear excepted.
(F) That Lessee will allow Lessor, prior to the termination of the Lease or any
renewal term, the right to place a sign on the property indicating that the premises is for rent,
lease or for sale.
13. IMPROVEMENTS TO REALTY: Lessee shall not commit nor suffer any waste to
be committed upon said premises or any nuisance or other act or thing which may disturb the
quiet enjoyment of any other tenants of the real property or adjoining properties. Except as
provided in paragraph 7 above, Lessee shall not make or cause to be made any alterations of the
said premises, or any part thereof, without the written consent of Lessor first had and obtained,
and any additions to or alterations of the said premises shall become at once a part of the realty
and belong to Lessor.
14. RESPONSIBILITIES OF LESSEE: Lessee acknowledges and agrees it is responsible
for the following items:
1. Lessee is responsible for restoration of the fence and property to its
original condition, to the satisfaction of Lessor upon termination of this Lease.
2. Lessee is responsible for any contamination to Ashland Creek and the
real property including any introduction of hazardous materials.
3. Lessee is responsible for maintaining the lot in the same condition and
repair as received, ordinary wear and tear excepted.
-7- LEASE AGREEMENT
Law Offices of
GRANTLAND,BLODGETr,SHAW&ABEL,LLP
1818 E.McAndrews Rd.
Medford,OR 97504
(541)773-6855
4. Lessee is responsible for locating all underground utilities prior to any
work on or about the real property.
5. Lessee is responsible for maintaining a safe and secure environment for
Lessee's employees, contractors and invitees, Avista's employees and invitees and
any other parties that are authorized to be in or around the premises including
members of the general public.
15. QUIET ENJOYMENT: Notwithstanding anything in this Lease to the contrary,
Lessee acknowledges it will be necessary for Lessee to share the use of the premises with Avista.
16. DEFAULT: If Lessee shall be in arrears in the payment of rent hereunder, or shall
fail or neglect to perform any of the other terms or conditions herein contained on its part to be
kept and performed, Lessor may lawfully terminate the tenancy, remove Lessee and re-take
possession of the property. Lessee shall be considered in default for failure to make lease or
rental payments if such payments are not made within (5) days of the due date. In the event
Lessee does not make a rental or lease payment within five (5) days of the due date or fails to
remedy any other default within the written notice period set forth above, then Lessor shall have
the right to accelerate the entire amount of remaining lease or rental payments due under the
terms of this Lease and call the same immediately due and payable.
The remedy above set forth shall not be the exclusive remedy in case of default, but
Lessor shall have such other and further rights and remedies as may be available to them, either
in law or in equity.
17. HAZARDOUS SUBSTANCES: Lessee shall indemnify, defend and save Lessor,
Michael H. Young and Jacquelyn J. Young,Trustees of the Michael H. & Jacquelyn J. Young
-8- LEASE AGREEMENT
Law Offices of
GRANTLAND,BLODGETT,SHAW&ABEL,LLP
1818 E.McAndrews Rd.
Medford,OR 97504
(541)773-6855
Revocable Trust and John C. and Patty G. Schwendener, from and against any suits, actions,
legal or administrative proceedings, demands, claims, liabilities, fines, penalties, losses, injuries,
damages, expenses or costs, including interest and attorney's fees, in any way connected with any
injury to any person or damage to the property or any personal property (including cost of
studies, surveys, clean-up and other environmental claim expenses) or any loss to Lessor,
Michael, H. Young and Jacquelyn J. Young, Trustees of the Michael H. &Jacquelyn J. Young
Revocable Trust and John C. and Patty G. Schwendener, occasioned in any way by hazardous
substances that are brought upon the property by the Lessee, its employees, agents and invitees or
by the negligent or intentional activities of Lessee during or after Lessee's occupation of the
property.
18. INTERPRETATIONS: All the covenants, agreements, conditions, and terms
contained in this Lease shall be binding upon and inure to the benefit of the successors and
assigns, respectively, of Lessor and Lessee. This paragraph shall not be construed as a covenant
by Lessor to assignment of this Lease or any interest in the leased property.
19. TIME OF ESSENCE: Time is of the essence of this Lease and a failure to enforce
any of the terms and provisions hereof by either party shall not constitute a waiver of the right to
insist upon strict compliance with such terms and conditions in the future.
20. LITIGATION EXPENSE: In the event suit or action is instituted concerning this
Lease then the prevailing party shall be awarded their reasonable attorney fees as set by the trial
court, or if upon appeal, by the appellate court.
-9- LEASE AGREEMENT
Law Offices of
GRANTLAND,BLODGETT,SHAW&ABEL,LLP
1818 E.McAndrews Rd.
Medford,OR 97504
(541)773-6855
21. NOTICES: All notices required under this Lease shall be in writing and shall be
delivered in person or by first class and certified mail, return receipt requested, and addressed to
the parties as set forth below, or such other address as the parties shall designate in
writing, as follows:
LESSOR: Michael H. &Jacquelyn J. Young, Trustee, PO Box 276, Jacksonville, OR 97530 and
John C. &Patty G. Schwendener, 25 Windsor Avenue, Medford, OR 97504
LESSEE: City of Ashland, 20 E. Main, Ashland, Oregon 97520.
22. CONSTRUCTION: In construing this Lease it is understood and agreed that if the
context so requires, the singular shall include the feminine and the neuter, and that generally all
grammatical changes shall be made, assumed, and implied to make the provisions hereof apply
equally to one or more individuals and/or corporations.
23. WAIVER: Failure of Lessors at any time to require performance of any provision of
this Lease shall not limit the right of Lessors to enforce the provision, nor shall any waiver by
Lessors of any breach of any provision or a waiver of that provision itself or any other provisions.
24. INCORPORATION: The parties hereby incorporate by reference the recitals set
forth above.
25. THIRD TENANT: Notwithstanding anything in this Lease to the contrary, the
parties acknowledge that Avista is only renting about 400 square feet of the masonry block
building leaving 600 square feet unrented. Lessor has retained the right to.rent this other 600
square feet to a new third party tenant. The new tenant will have the same rights, as Avista, to
use the masonry block building located on the property and a portion of the parking lot sufficient
-10- LEASE AGREEMENT
Law Offices of
GRANTLAND,BLODGETT,SHAW&ABEL,LLP
1818 E.McAndrews Rd.
Medford,OR 97504
(541)773-6855
L
1
to park one vehicle and to use the existing porta-potti. The new tenant will also have the right of
ingress to and egress from the entrance located on `B" Street to the parking area and to the
masonry block building and porta-potti. Lessee will have continuous, unencumbered access to
all other portions of the parking lot not specifically used by Avista and any new tenant.
Furthermore, if the tenancy with Avista is terminated then Lessor retains the right to rent or lease
the premises to another third party by granting rights similar to that enjoyed by Avista.
IN WITNESS WHEREOF, the parties have hereunto executed this document the day and
year first hereinabove written.
THE MICHAEL H. & JACQUELYN J. YOUNG
REVOCABLE TRUST
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M chael H. Young, Trustee
By
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AP 0 ED S FORM Patty . Schwendener
"Lessor"re Si l��Zl �f(
Date CITY OF ASH D
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"Lessee"
-11- LEASE AGREEMENT
Law Offices of
GRANTLAND,BLODGETT,SHAW&ABEL,LLP
1818 E.McAndrews Rd.
Medford,OR 97504
(541)773-6855