Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
PRHSPSC PKT 02-11-2002
City of Federal Way CITY COUNCIL PARKS, RECREATION, HUMAN SERVICES & PUBLIC SAFETY COMMITTEE Monday, February 11, 2002 12:00 p.m. Ar_F.Nf)A City Hall Mt. Baker Conference Room 1. CALL TO ORDER 2. PUBLIC FORUM 3. COMMISSION COMMENTS 4. APPROVAL OF DECEMBER 10, 2001 SUMMARY 5. COMMITTEE BUSINESS A. Arts Commission 2002 Workplan B. Police and Municipal Court Lease Renewal C. Proposed Property Acquisition/Annstrong Property D. Barclay Place. Homeowners Assoc. proposal for a paved trail E. Skate Park Structure at Steel Lake Park Project RF13 00-135, Final approval and approval to .release retainage F. Batting Cage Update G. Committee 2001 Calendar H. PSO Vehicles — Dodge Intrepid 6. PENDING ITEMS • Federal Grants • Public Information Officer 7. NEXT MEETING — Monday, March 11, 2002 S. ADJOURNMENT Action Faber Action Richardson Information Jainga Information Jainga Action Jainga Information Jainga Review Information Kirkpatrick Committee Members: Staff: Linda Kochmar, Chair Jennifer Schroder, Direct,-;- Mary irectorMary Gates Mary Jaenicke, Administrative Assistant Mike Park 661-4041 City of Federal Way City Council PARKS RECREATION HUMAN SERVICES & PUBLIC SAFETY COUNCIL COMMITTEE Monday, December 10, 2001 12:00 p.m. SUMMARY In attendance: Council Committee members Jeanne Burbidge, Chair; Dean McColgan, Michael Hellickson, Deputy Mayor Linda Kochmar. Staff: David Moseley, City Manager, Ann Guenther, Human Services Manager; Pat Richardson, Deputy City Attorney; Jennifer Schroder, Director of Parks, Recreation and Cultural Srrvices, Kurt Reuter, Parks Superintendent, Steve Ikerd Property Services Manager, Mary Jaenicke, Administrative Assistant II. Guests: Karen Pettingell Vice Chair Human Services Commission, Joann Piquette, Chair, Arts Commission, Michael Massoth, Barclay Place Homeowners Association. Chair Burbidge called the meeting to order at 12:05 p.m. PUBLIC FORUM Michael Massoth represented the Barclay Place Homeowners Association. He stated that the residents of Barclay Place currently maintain the area by trimming the trees, cleaning trash etc. He stated the area is used by hundreds of people. They would like to pave the trail so it will tie in with English Gardens. Originally the Homeowners Association thought they could do that on their own. They received approximately six bids, and they were all in the $12,000415,000 range. He stated that Jon Jainga suggested the Homeowners Association contact the Public Works Department, and possibly split the cost of material and labor for paving the trail. Schroder stated that the area is maintained by Public Works, and that we do stress connectivity in our Parks. Council member McColgan stated that he would like this brought back to the committee. COMMISSION COMMENTS Joann Piquette, Arts Commission Chair announced that elections were held at the December Arts Commission member to elect a new Chair and Vice Chair. The Chair is Donna Welch, and Vice Chair is Lana Bostic. Council member Burbidge stated that this is Joann's last Council Committee meeting as the Arts Commission Chair, and that she has completed nine years of serving on the Commission. APPROVAL OF SUMMARY Chair Burbidge and Council member McColgan approved the November 1 meeting minutes as written. BUSINESS ITEMS PCCI Janitorial Service Contract Property Services Manager Steve Ikerd stated that Professional Connnnercial Cleaning, Inc. (PCCI) has been servicing the building for two years. Steve recommends extending their contract for an additional year at the same annual cost of $22,564.00. Schroder stated that the funds for this contract are already in the 2002 budget. Deputy Mayor Kochmar asked if an analysis was done regarding contracting out for services vs. in-house. Schroder stated that this was done last year at the request of the Council Committee. The analysis showed the dollar level was compelling to contract out, and also there was concern regarding what would happen if our own staff was to get ill, or take a vacation. This would affect the service. As it stands right now, if PCCI has a staff person who becomes ill, it is their responsibility for finding someone to take their place. McColgan moved that we forward to full Council on December 18, 2001 approval of the PCCI Janitorial contract amendment in the amount of $22,564 for a one-year term. Burbidge seconded. Motion Passed. Weyerhaeuser Donation Chief Kirkpatrick stated that this was for information only. The Weyerhaeuser Company provided a donation of $2,500. Dan Waite, the Regional Security Director for Weyerhaeuser, presented the donation. The department will use this gift to upgrade the Speed Watch Trailer with software and hardware needed to maintain statistical information. Council member McColgan asked how the donation was obtained. Chief Kirkpatrick stated that the PARKS, RECREATION, HUMAN SERVICES & PUBLIC SAFETY COUNCIL COMMITTEE Monday, December 10, 2001 Summary Page 2 department has developed a good relationship with them. McColgan asked if this donation came from a foundation that Weyerhaeuser has, or if it is in their budget. Chief Kirkpatrick stated she would find out. King County Web -based Information for Regional Enforcement Chief Kirkpatrick stated she was approached by the Valley City Police Departments to participate in a web -based data sharing system. Participating police departments will be able to enter into the Web -base to see if the person they have in custody has been arrested by other agencies. This system allows regional law enforcement agencies to share information and search police records data via desktop computers, wireless mobile data computers, and personal digital assistants. This is a pilot project. The maintenance cost of the website is shay between 13 cities. The Public Safety Departments share of the cost is $962.00. Council member Hellickson asked if the system we currently have, and this new system will be able to interface. Chief Kirkpatrick stated that she is not an expert on computers, and how they interface, but that Cathy Schrock, Records Manager is representing the Federal Way Department of Public Safety in this project, and she would have Cathy contact Council member Hellickson to answer any questions he has regarding this system. Deputy Mayor Kochmar asked where the money to participate in this project would come from. Chief Kirkpatrick stated the money would come from the 502 Interfund. If the Public Safety Department decides to permanently participate in this web -based data sharing system, it will be brought to full Council for consideration during the 2003-2004 budget process. OTHER BUSINESS Council member Hellickson requested and update on the extension piece linking to the BPA Trail. Schroder stated a community meeting has been scheduled for January 17, 2002. They are hoping to host the meeting at Illahee Junior High in the Library, but are waiting for confirmation that the space will be available. Chair Burbidge reminded the committee and staff to be ready to discuss moving the Council Committee meeting to the third week of the month. NEXT MEETING January 14, 2002 ADJOURNMENT Meeting adjourned at 12:27 p.m. 1:1210suM PRcc 5.A CITY OF FEDERAL WAY PARKS, RECREATION & CULTURAL SERVICES DEPARTMENT Date: February 4, 2002 To: Parks, Recreation, Human Services & Public Safety Council Committee From: Mary Faber, Recreation and Cultural Services Superintendent Via: David Mose e Manager Subject: Arts Commiss on Work Plan Background: The Arts Commission developed a 2002 Work Plan. The Commission will operate with three working Committees, which will meet monthly, and one full Commission meeting each month. The Commission reviewed and approved the Work Plan at the January 2002 Commission meeting. A copy of the Work Plan is included for Council Review. Committee Recommendation: Authorize the Arts Commission to implement the 2002 Work Plan, and forward to the Full Council for approval of the Arts Commission 2002 Work Plan at the March 5, 2002 Council meeting. APPROVAL OF COMMITTEE REPORT: Committee Chair Committee Member Committee Member A-1 - W. 40- City of Federal Way Arts Commission 2002 Work Plan 1. Public Art Committee A. Maintain City Hall Exhibits and Knutzen Family Theatre Gallery 1. Schedule artists for both galleries for 2002. City Hall Gallery: 5 shows, including the Arts Alive Juried Show Knutzen Family Theatre: 4 Shows Timeline: Artists scheduled by Jan. 15, 2002 Lead: Staff 2. Organize volunteers to assist in installing and removing exhibits. Timeline: On-going Lead: Regina Bigler B. Develop art plans for upcoming 2% for Art Projects 1. Finalize involvement with the Skateboard Park project. Timeline: Report to Council in March, 2002 Lead: Iris Marshall C. Implement Outdoor Sculpture Exhibit at Celebration Park 1. Finalize budget Timeline: January 2002 Lead: Lana Bostic, /ris Marshall, Regina Bigler 2. Review Artists Proposals. Timeline: February 2002 Lead. Lana Bostic, Iris Marshall, Regina Bigler 3. Install Exhibit Timeline: May 2002 Lead: Staff D. Review Draft Public Art Policies and finalize. 1. A ad-hoc committee of the Commission review policies. Timeline: February 2002 Lead: Allan Smith, Donna Welch 2. The Public Art Committee review policies. Timeline: March 2002 Lead. Allan Smith, Donna Welch 3. Finalize Policies for Commission/Council approval. Timeline: May, 2002 Lead: Staff E. Sponsor Alive in the Arts Juried Art Show 1. Develop Artist Prospectus Timeline: July, 2002 Lead: Regina Bigler, Lana Bostic 2. Distribute Prospectus Timeline: September, 2002 Lead: Staff 3. Install the Exhibit, Host Reception Timeline: October, 2002 Lead: Regina Bigler, Lana Bostic F. Assist with volunteer effort for the Historical Art Work at Dumas Bay Centre. Timeline: As needed by the Committee Lead: Bette Simpson P�-Z 2. Cultural Outreach Committee A. Review/revise Knutzen Family Theatre Policies 1. Host F.W.C.P.A. and get feedback from user groups concerning the facility, policies and pricing Timeline: February, 2002 Lead: B. Develop on-going advocacy with the Council on facility nods. 1. Update Council Committee on facility schedules and needs. Timeline: Attend Council Committee Quarterly Lead: Donna Welch C. Update annual informational Arts Commission brochure Timeline: Print in February, 2002 Lead: Ted Nelson D. Publish semi-annual newsletter: Timeline: Spring -Summer Edition mailed in March, 2002 Fall/Winter Edition mailed in September, 2002 Lead: Ted Nelson E. Organize attendance Chamber meetings and bring promotional items for display. Timeline: Monthly as scheduled. Lead: Donna Welch, Iris Marshall F. Update the Arts Commission informational slide program and develop a compatible version for the City's local channel.. Timeline: March, 2000 Lead: Allan Smith G. Submit information for the cultural calendar page on a quarterly schedule for Recreation Brochure. Timeline: Quarterly to coincide with the production of the Recreation Brochure. Lead: H. Submit monthly article on Arts Commission topics to the FW Mirror. Timeline: Monthly Lead: Margaret Douglas 3. Programs Committee A. Sponsor King County Performance Network Events at the Knutzen Family Theatre. Assist w/promotions, ticket sales, ushering. Timeline: 2 Concerts to be held Feb -March 2002 Lead: Bette Simpson B. Host reception with Contract for Services Recipients and City Council. Timeline: March, 2002 Lead: Iris Marshall C. Red, White and Blues Festival: 1. Review and develop new ideas for Artists in Action area. Timeline: Finalized by March, 2002 Lead: Allan Smith 2. Develop the idea of an integrated public art project at the event. Timeline: Artists selected and ideas finalized by March, 2002. Lead: (2\-3 D. 2002 Contract for Services Program. 1. Develop Update application guidelines. Timeline: Programs Committee review June, 2002 Lead: Jackie Peterson 2. Publish new guidelines. Timeline: August 2002 Lead: Staff 3. Review applications, make recommendations for funding to Commission. • Timeline: Review applications in October, approve at Commission Meeting in October Lead: Jackie Peterson E. Continue involvement and funding support of the Summer Sounds on the Beach Concert Series. Schedule Commission members to attend Concerts. Timeline: Summer, 2002 Lead: Lana Bostic 4. Cultural Plan Update A small group of Arts Commissioners and members who served on the first Cultural Planning Committee will review the current plan, update and recommend a process for developing a new Cultural Plan. Timeline: Distribute Survey through Spring Recreation Brochure. Focus group will review the existing Plan in February. Commission schedule a retreat in April to review draft of plan. Present draft to Council in June, 2002 Lead: Allan Smith, Donna Welch Fj 5.B CITY OF FEDERAL WAY CITY COUNCIL PARKS/RECREATION/HUMAN SERVICES/ PUBLIC SAFETY COMMITTEE February 11, 2002 Meeting Date: February 1, 2002 QJ� From: Bob Sterbank, City Attorney Via: David H. ose i anager Subject: Municipal Court / Police Department Facilities (Building Lease) Background: The City entered into a lease agreement with Inter Co -Op USA No. III on December 16, 1998 for leasing the existing police facilities on 91" Avenue. The parties amended the lease on August 18, 1999, to (1) and extend the lease for the police facilities, and (2) include the Municipal Court. The lease amendment will expire on 06/03/2002 unless the City exercises the option to extend the lease. The City must give written notice of its intent to exercise an option by February 28, 2002. The City has two options to extend the lease: option 1 is for the term 07/01/02 — 06/30/03, and option 2 is for 07/01/03 — 06/30/04. The monthly rental fee for both options is fixed, and is the same rental amount the City currently pays: $21,012.00 Meanwhile, City staff are in the process of preparing a work program, including community outreach, to assist the Council in reaching a decision concerning future construction of a combined City Hall / Municipal Court facility. Although the work program has not yet been prepared, it is unlikely that it will be able to be completed, and a new facility constructed, by the end of the second option period (June 30, 2004). Staff recommends that Council authorize the City Manager to notify Inter Co -Op USA No. III of its intent to exercise both options, thus extending the lease to June 2004. Committee Recommendation: 1. Recommend that the City exercise the first option, which extends the lease to June 30, 2003 and forward to full Council for consideration at the February 19, 2002 Council meeting; or 2. Recommend that the City exercise both options, which extends the lease to June 30, 2004, and forward to full Council for consideration at the February 19, 2002 Council meeting. APPROVAL OF COMMITTEE REPORT: Committee Chair Committee Member Committee Member K:\AGNDITEM\PRHSPSCOMMrffEEN021102 a-� .it FIRST AMENDMENT TO COMMERCIAL LEASE This First Amendment ("Amendment") is dated effective this 18th day of August, 1999 and is entered into by and between INTER CO-OP USA NO. III ('Landlord") and the CITY OF FEDERAL WAY, a Washington municipal corporation ('Tenant'). A. The Landlord and the Tenant entered into a Commercial Lease dated effective December 16, 1998 ('Lease") whereby Landlord agreed to lease to Tenant a portion of theproperty known as Ninth Avenue Center legally described on the attached Exhibit "A", and as shown by the words "Federal Way Police" on the attached Exhibit "B" ('Map of Premises") ('Premises"); B. The parties desire to amend the Lease to extend the Initial Term of the Lease and to provide for two Lease extension periods, and provide for a rental increase. NOW, THEREFORE, the parties agree to the following terms and conditions: TERM. Section 3 of the Lease shall be amended to provide that the Initial Term of the Lease shall be extended approximately 6-1/2 months, with said Initial Term End Date amended to June 30, 2002. Section 3 of the Lease shall further be amended to provide that Tenant shall have two (2) separate extension options. Tenant may, at its sole discretion, extend the term of the Lease for one (1) or two (2) additional terms of one (1).year each, which extension terms are as follows: First Extension Option: 07/01/2002 - 06/30/2003 Second Extension Option: 07/01/2003 - 06/30/2004 Provided that Tenant is not in default of the Lease, Tenant may exercise any of its options hereunder by providing Landlord with written notice of its election to exercise said option not less than one hundred twenty (120) days prior to the end of the Initial Lease Term (as herein amended), or the end of the first option term, if this Lease is so extended. If Tenant has not provided Landlord with such written notice, then the Lease shall terminate at the expiration of the Initial Term or the end of the first or second option term. It is further agreed that Rider #28 of the Lease, Cancellation Provision, shall be deleted in its entirety. 2. RENT. Section 7 of the Lease shall be amended to provide that effective December 16, 2001, and for any subsequent extension options exercised, the Rent shall be $21,012.00 per month, including NNN. 3. FULL FORCE AND EFFECT. All other terms and conditions of the Lease not modified by this Amendment shall remain in full force and effect. Morris Piha Management Group, Inc. 1 Initial (3-Z IN WITNESS WHEREOF, the parties have executed this instrument the day and year first above written. LANDLORD: INT CO-OP USA NO. 111 By: Its: General Partner K:\document\policels.ex2 08/20/99 STATE OF WASHINGTON ) ) ss. COUNTY OF KING ) TENANT: CITY OF FEDERAL WAY 6• Kenneth E. N Its: City Manager APPROVED AS TO FORM: iiLin�de, �itto�rney PARTNERSHIP ACKNOWLEDGMENT On this day personally appeared before me Mo f { tS P16- , to me known to be the individual who executed the within and foregoing instrument as duly appointed ('-3-e�e_,d P <.,yA -e for INTER CO -0P USA NO. III, and acknowledges that he/she signed the same as his/her free and voluntary act and deed and on oath stating that his/her powers authorizing the execution of this instrument have not been revoked. GIVEN under my hand and official seal the 3rd day of Se&in/ , 191. Morris Piha Management Group, Inc. 2 Initial 6-3 t1o7fArtk- NOTARY SIGNA U PJJ13 a �o �/t t3e�lSuS 0 PRINTED NAME OF NOTARY Notary Public in and for theS ate of Washington. My Commission Expires: '- / - o -00c) Morris Piha Management Group, Inc. 2 Initial 6-3 STATE OF WASHINGTON ) ) ss. COUNTY OF KING ) On this day personally appeared before me, the undersigned, a Notary Public in and for the State of Washington, duly commissioned and sworn, Kenneth E. Nyberg / , to me known to be the City Manager/ Pepw of the City of Federal Way, a Washington municipal corporation, the corporation that executed the foregoing instrument, and *nowledged the said instrument to be the free and voluntary act and deed -of said corporation, for the uses and purposes therein mentioned, and on oath stated that he was authorized to execute the said instrument. GIVEN under my hand and official seal this 11d day of7e , b w 1,19 qcl?. EILEEN ROBINSON STATE OF WASHINGTON NOTARY PUBLIC YY COWISSIOK M"IM31-29-02 Morris Piha Management Group, Inc. NOTARY SIGNATURE E/'/eeK -Rob;`tsoh PRINTED NAME OF NOTARY Notary Public in and for the State of Washington My commission expires: Initia� EXHIBIT A LEGAL DESCRIPTION PARCEL "9th Avenue Center" Lot 11 of West Campus Business Park, as per Plat recorded in Volume 97,�f Plats, pages 78 through 82. Records of King County: Together with an easement for community driveway purposes over the North 18 Feet of Lot 10 in said Plat: Situate in the County of King, State of Washington Morris Piha Management Group, Inc. 4 (2) InitiaAt JUE 23 '99 14:59 TO-912536614189-�200 FROM -MORRIS PIHA MANAGEMENT NINTH, XENUt GtN I t:K 34004 - 34016 9th Avenue south Odon Labs 2,064 GF Bldg. D All Square Footage Figures Are Approximate E MBIT "B" — MAP OF PREMISES Lakeside Milam 3,894 SF Federal Way Police 12,625 SF Federal Way Police 4,070 SF Federal Way UPC & Unicar• Police 13,991 SF 1.795 6F T-776 P.02/02 F-723 Fedorat Way Police 4,521 SF S Initial Darting Construction ` 722 SF NeMex Industries 3,175 SF Gymnastics Unlimited 6,822 SF Belttown Boudng 4,981 SF Sign Tech Electric 3,292 SF Initial COMMERCIAL LEASE THIS COMMERCIAL LEASE, dated December 16, 1998, is made between INTER CO-OP USA NO. III ("Landlord") CITY OF FEDERAL WAY ("Tenant'). (This agreement is hereinafter referred to as the "Lease"). IT IS AGREED: 1. BASIC PROVISIONS AND DEFINITIONS The following terms, whenever used in this Lease, with the first letter of each word capitalized, will have the meanings set forth in this Section, and only such meanings, unless expressly contradicted, limited or expanded in this Lease: 1.1 Premises: The leased portion of the property as shown and/or legally described on attached Exhibits A 'Legal Description' and Exhibit B 'Map of Premises.' 1.2 Building Name and Address: Ninth Avenue Center Building 34008 Ninth Avenue South Federal Way, WA 98003 1.3 Tenant's Square Foota$e & Proportionate Share: Tenant's Square Footage is approximately 22,911, consisting of all of Building 'B' equal to 12,525 square feet and 5,865 square feet of Building 'C', and 4,521 square feet of Building 'A'. 1.4 Date of Execution: The date above written, which is the date of full execution hereof. 1.5 Commencement Date (Section 4): December 16, 1998 1.6 Initial Term (Section 3): Three (3) years 1.7 Initial Term End Date (Section 31: December 15, 2001 1.8 Rent for Initial Term: $ 19,408.79:` 12/16/98 - 12/15/00 (First two years) (Section ): $ 19,637.90:`'C 12/15/00 - 12/15/01 (Third year) 'This $19,408.78 Rent is calculated as follows: Building 'A': 4,521 sf-0.75 $ 3,390.75 Building 'B': 12,525 sf -0.80 $10,020.00 Building 'C': 5,865sf-0.30 $ 1,759.50 NNN-.185/SF S 4.238.54 $19,408.79 'This $19,637.90 Rent is calculated as follows: NNN - $.195/SF $ 4,467.65 In the event the Tenant obtains tax exempt status Trom King County, Landlord agrees that the NNN charges for the Initial Term and Extended Term will be reduced by the amount of the real estate taxes included in such NNN charges. 1.9 Rent Payment: Monthly, in advance on the first calendar day of each month. 1.10 Deposits (Section 8): Rent Deposit $ 16,852.60 (December, 1998) Security Deposit $ 0.00 Morris Piha Management Group, Inc. 1 1rfLG'l V NW 1.11 (Landlord's Notice and Payment Address (Section 24.15): NOTICE: do Morris Piha Management Group, Inc. 3650. 131 st Avenue SE, Suite 205 Bellevue, WA 98006-1334 Telephone (425) 643-8400 PAYMENT: do Morris Piha Management Group, Inc. 3650 - 131st Avenue SE, Suite 205 Bellevue, WA 98006-1334 Telephone (425) 643-8400 1.12 Tenant's Billing and Notice Address (Section 24.15): City of Federal Way 33530 First Way South Federal Way, WA 98003 Telephone (253) 661-4000 1.13 Guarantor Address (Section 24.18): N/A 1.14 Tenant's Trade Name ((f any): 1.15 State of Incorporation of Tenant: (if corporation) 1.16 Permitted Uses under Lease (Section 51: 1.17 Riders & Exhibits to the Lease: (Section 24.20) 2. PREMISES :j City of Federal Way Police Washington Police Station, or other City purposes Riders: #28 Cancellation Provision Exhibits Lettered: A, B and C Landlord hereby leases to Tenant and Tenant hereby leases from Landlord, upon the terms and conditions set forth in this Lease, the Premises as legally described on attached Exhibit A and identified on the floor plan attached as Exhibit B. The Premises are a part of the building which is situated at the Building Address as set out in Section 1.2. 3. TERM Tenant leases from Landlord the Premises for a lease term which includes the Initial term of this Lease listed in Section 1.6 [and the Exterided ierriis listed On Sect on i.8 (the 'Lease . The Initial Tenn will begin on the Commencement date and end at midnight on the Initial Term End Date unless sooner terminated as provided elsewhere in this Lease. 4. POSSESSION 4.1 Possession. Except as provided elsewhere in this Lease, Tenant will be entitled to possession of the Premises on the Commencement Date. 4.2 Delay of Possession. If Landlord, for any reason, cannot deliver possession of the Premises to Tenant upon the Commencement Date, this Lease shall not be void or voidable, nor shall Landlord be liable to Tenant for any loss or damage resulting from the delay, but there shall be a rent abatement covering the period between the Commencement Date and the time the Landlord delivers possession to tenant, and all of the terns and conditions of this Lease shall remain in full force and effect. If Landlord does not deliver possession of the Premises to Tenant LRQII after the Commencement Date (the 'Delivery period'), Tenant may, at its option, cancel this Lease by written notice delivered to Landlord within the ten (10) day period immediately succeeding the final day of the Delivery Period. If Tenant does not deliver such written notice to Landlord, within that ten (10) days period, Tenant's right to cancel this Lease will terminate and be of no furtheLf9(ce or effect, and the terms and conditions of this Lease will remain in full force and effect, except that Tenant's rent abatement shall continue until the time Landlord delivers possession of the Premises to Tenant. 4.4 Surrender of Premises. At the expiration or sooner termination of this Lease, Tenant shall return the Premises to Landlord in the same condition in which received or, if altered by Landlord or by Tenant with Landlord's consent, then the Premises may be retumed in such altered condition. Broom clean, reasonable wear and tear excepted. Tenant shall remove all personal property, trade fixtures, appliances and equipment ('Fixtures'). Where such removal will require structural changes or damage to the Premises, Landlord will have the option to have same removed at Tenant's expense and under Morris Piha Management Group, Inc. 2 01Initr 13-7 Now v Landlord's supervision. Tenant shall also remove any and all alterations which Landlord designates to be removed pursuant to Section 10.4 below, and shall restore the Premises to the condition they were in prior to the installation or construction of said alterations. If Tenant has failed to fully pay all amounts due under this lease, Landlord may, at Landlord's option, designate any or all fixtures paid for by Tenant and installed on the Premises as Landlord's payment in full or in part of any such unpaid amounts, and Tenant shall provide Landlord with a Bill of Sale correctly evidencing the transfer of ownership. If Tenant fails to remove any fixture, at Landlord's option, Tenant shall agree to designate and permit Landlord to remove the same at Tenant's expense. Tenant shall return all keys to the Landlord within twelve (12) hours following termination of this Lease or pay for the cost of new keys, if the Landlord so requires. Tenant's obligation to perform this covenant shall survive the expiration or termination of this Lease. Landlord Premises lo ot e humdred eighty (180) days prior to the expiraitori e - early te -mirieflo i of ihii 'ease, a i d reserves the right to enter any part of the Premises during the one hundred twenty (120) day periodrp for to the expiration of this Lease to show the Premises to prospective tenants. 5. UE w 1441i" 5.1 Use. Tenant covenants that at all times during the Lease term and such other time as Tenant occupies the Premises, Tenant shall use the Premises for the Permitted uses and for no other purposes without the prior written consent of Landlord, as set out in Section 1.17. which -consent shall not be unreasonably withheld. 5.2 Uses Prohibited. Tenant shall not do or permit anything to be done in nor about the premises or bring or keep anything therein which will in any way increase or affect the existing rate of any fire or other insurance policy upon the Premises or the Building, or cause a cancellation of any such insurance policy covering said Premises, nor which will in any way obstruct or interfere with the right of other tenants or occupants of the Building or injure or annoy them, nor shall the Tenant use or allow the Premises to be used for any improper, immoral, unlawful, objectionable or offensive purpose, nor shall Tenant cause, maintain or suffer or permit any nuisance in, on or about the Premises. Tenant shall not commit or allow to be committed any waste in or upon the Premises and shall refrain from using or permitting the use of the Premises or any portion thereof as living quarters, sleeping quarters or for lodging purposes. Tenant shall not do or permit anything to be done in or about the Premises, nor bring or keep anything thereon that is or will constitute or create a hazardous waste or substance or violate any environmental law. Tenant will indemnity and hold the Landlord harmless from any and all damages related to the Tenant's introduction to, or creation of, hazardous waste on the Premises. Tenant shall advise Landlord in writing immediately of any environmental concern related to Tenant's use and occupancy of the Premises brought to Tenant's attention by any private party or govemmental agency or official. Landlord shall have the right to remedy any environmental problem and to conduct any environmental tests reasonably necessary to discover a hazardous waste or other environmental problem and Tenant shall be liable for all costs and expenses related to such tests or remedial action if a hazardous waste or environmental problem caused by Tenant is found to. exist. 5.3 Building Codes and Zoning. Tenant has investigated all applicable building and zoning codes, regulations and ordinances to determine whether Tenant's intended use of the Premises is permitted. Based upon this investigation, Tenant accepts the Premises 'as is', subject to all applicable statutes, ordinances, rules and regulations governing Tenant's use of the Premises. Any and all expenses required to comply with all applicable statutes, ordinances, rules, regulations and requirements in effect during the Lease Term or part thereof regulating Tenant's use of the Premises will be bome exclusively by Tenant. Tenant agrees to comply with all such statues, ordinances, rules and regulations throughout the Lease Term. 5.4 Condition of Premises. Tenant has inspected the plumbing, lighting, air conditioning, heating, windows, interior walls, flooring and all other elements of the Premises prior to execution of this Lease. Based upon that inspection, Tenant accepts the Premises 'as is' in the absence of any material change in its condition prior to the Commencement Date or the date the Tenant takes possession of the Premises, whichever is earlier. Tenant acknowledges that neither Landlord nor Landlord's agent has made any representation or warranty as to the present or future suitability of the Premises for the conduct of Tenant's business. 6. 6.1 Areas. Landlord shall make available such areas and facilities for the common use of all tenants of the Building (including but not limited to parking areas, driveways, tnxkways, delivery passages, truck -loading area, access and egress roads, walkways, and landscaped and planted areas) as Landlord shall reasonably deem appropriate ('Common Areas'). The roof and extee r'wails of the Building and the utility systems up to the exterior walls of the Premises are Common Areas. Landlord or its agents shall operate, manage, equip, light, repair, replace and maintain the Common Areas for their intended purposes in such manner as Landlord shall reasonably, in its sole discretion, determine. Landlord may, from time to time, change the size, location, nature and use of any Common Area, and make installations therein and move and remove the same, provided that Tenant's access to the Premises is not materially altered. All expenses in connection with the Common Areas are Operating Expenses for the purposes of Section 9 below. 6.2 Rights. Tenant and its employees, agents and invitees shall have the nonexclusive right (in common with other tenants of the Building and Landlord) to use the Common Areas, subject to any Rules, as defined in Section 18. Landlord's Rules may include the designation of specific areas in which ars owned by Tenant, its employees and agents must be parked. Landlord may at any time temporarily close any Common Areas due to construction, maintenance, repair or changes to any part of the Building or the real property upon which the Building is located, with prior notice to Tenant. Morris Piha Management Group, Inc. 3 Ini 'L • w v 6.3 Parking. Tenant shall be entitled to use, as xhibit'C' and in omorated herein by this refer indi atone c�uch narking shall be reserved for Polio parking stalls in the Ninth Avenue Center on a nona of tire sa ne to use any of gie parking areaq. 7. MINIMUM RENT 7.1 Initial Term. During the Initial Tenn of this Lease, Tenant agrees to pay to Landlord at Landlord's Payment Address or such other place as designated, the Mininmm Rent for the Initial Term of this Lease, in the manner described in Section 7.3. 7.3 Rent Payment. The Minimum Rent for the Initial Term [ ] shall be paid in advance of the first day of each calendar month of the Initial Tenn or any Extended Term or any period prior of subsequent thereto while Tenant is in possession of the Premises. The Minimum Rent for any partial month shall be prorated. The h4inin+smt Rent is exclusive of any sales, franchise, business or occupation or other tax based on rents and should any such taxes apply during the term of this Lease, the Minimum Rent shall be increased by such amount. In the event percentage or other additional rent is payable by the Tenant under this Lease, it shall be paid in the manner and at the time set forth in the Riders attached hereto and by reference made a part of this Lease. 8. FIRST MONTHS RENTAL AND SECURITY DEPOSIT 8.1 Deposits. Asset out in Section f - 1J 1Q, the Tenant has paid this day to the Landlord the Rent Deposit which shall be credited to the payment of the first month's rent,, 9. OPERATING EXPENSES 9A Ne! Lease. The purpose �f this Sectio i 9 *9 to insure ihai, 9 i addition to Mi ii ituni Rent, Temen! pays cosis specifically assunied by Landlord aceading to o! I—P F FA 14 -M IF 114 '- -4 '- e 9.2 Direct Expense. The expenses listed in this Section 9.2 ("Direct Expenses") are to be paid directly by Tenant: 9.2.1. Utilities. Tenant agrees to pay before delinquency and at its sole cost and expense, all charges for ffie following utilities s�plied to the Premises:' , water, electricity, gas heating, &1d lighting, sewer, throughout the full Lease Term. Landlo sliall no! be liable foi- die failure of any of thege services for any reason vAttgoever: If charges for any or all of such utility services are not capable of separate metering and are charged for the Building as a whole, Tenant agrees to pay, upon demand, Tenant's Proportionate Share of such charges. If charged for any or all of such utility services are charged for a larger space containing the Premises, Tenant agrees to pay upon demand a share of any such charges based on the proportion that the square footage of the Premises bears to such large space. 9.2.2 Insurance Procured by Tenant. Throughout the Lease Term and any other pertod(s) of occupancy of the Premises by Tenant, Tenant shall, at Tenant's expense, obtain and maintain the following insurance policies, naming as additional insured, the Landlord, Morris Piha Management Group, and Landlord's lender, as required: (a) Liability Insurance. A commercial general liability insurance policy providing coverage for bodily injury liability, property damage liability and personal injury liability with minimum limits of not less than $1,000,000 Combined Morris Piha Management Group, Inc. 4 Ino 0-)0 0 %-� Q Single Limit per accident and $2,000,000 General Aggregate. Such insurance policies shall include Blanket Contractual Liability and Owners and Contractors Protective endorsements. The insurance required by this Section shall be on an occurrence basis, and underwritten by an acceptable insurer licensed to do business in the State of Washington. If Tenant is unable to obtain this insurance on an occurrence basis, it may be on a claims- made basis provided that, ' expense, obtairis an ovVrier"s Protective policy, issued in Hie na ne oF Laridloid o ily, voliech 09 ori art occu e ice basis (or die 'eaiiitsrequi,edby this Section 9.2.2(a) This ingurance shall be written as a prerviary policy not q vvifli arid not iri Tenant's shall be =aired to maintain tail coverage for minimum period of three (3) years from the date this Agreement is actually terminated. (b) Personal Property Insurance. Property insurance (e. Hie equivalent) covering Tenant's personal property, including but not limited to Tenant's furniture, fixtures, leasehold improvements, equipment and inventory, in the amount of its full replacement costs. Such property insurance coverage shall be a minimum insure against loss resulting from fire, lightning and extended or broad form perils. Landlord shall be named as Loss Payee as its interest may appear in tenant improvements and betterments. (c) Business Interruption and Plate Glass Insurance. Business interruption insurance in an amount sufficient to protect Tenant against any additional costs and lost income associated with a move to temporary space due to a business interruption. breakage. Tenant shall obtain the insurance required by this Section 9.2.2 from companies reasonably acceptable to Landlord licensed td do business in the State of Washington. Before occupying the Premise, Tenant shall deliver to Landlord, or Landlord's agent, certificates of insurance evidencing the existence and amount of such insurance. to ba idlwd's len Not later than ten (10) days before expiration of these policies, the Tenant shall deliver to Landlord evidence that insurance required by this Section 9.2.2 has been continued. The policies shallnot be emieeletble o subject to eduction a(coveine unii! after dii.ty 00) days prier vvi itte i icitice to ba idlefd, or itsAgent; a. d ke id'a d's leri e , if imy. If Tenant fails to maintain the required insurance, Landlord may, but it is not required to, procure the same at Tenant's expense. 9.2.3 Personal Property Taxes. Tenant shall pay, before delinquency, any and all taxes levied or assessed and payable during the Lease term upon all Tenant's equipment, furniture, fixtures and any other personal property located on the Premises. If any of the same are assessed or taxed with the building or real property upon which the Building is located, Tenant shall pay Landlord the amount of such taxes within ten (10) days after receipt of a written statement setting forth the amount of such taxes that Landlord has determined to be attributable to Tenant's personal property. 9.2.4 Licenses and Taxes. Tenant shall be liable for, and shall pay throughout the Lease Term, all license and excise fees and occupation taxes covering the business conducted on the premises. If any governmental authority or unit under any present or future law effective at any time during the Lease Term shall in any manner levy a tax on rents payable under this Lease or rents accruing from use of the premises or a tax in any form against Landlord because of, or measured by, income derived from the leasing or rental of said property, such tax shall be paid by Tenant, either directly or through Landlord, and upon Tenant's default therein, Landlord shall have the same remedies as upon failure to pay Minimum Monthly Rent. It is understood and agreed, however, that Tenant shall not be liable to pay any net income tax imposed on Landlord unless, and then only to the extent that, the next income tax is a substitute for real estate taxes. 9.3 ALL NNN CHARLES INCLUDED IN RENT. Additional Rent. Tenant shall pay as additional rent ('Additional Rent') in the manner set forth in Section 9.4, Tenant's Proportionate Share of the following expenses 9.3.1 Insurance Procured by Landlord. Throughout the Lease Term, Tenant's Proportionate Share of the following insurance policies, obtained and maintained by Landlord, insuring the Landlord and Landlord's lender, or other (a) Fire and Casualty Insurance. Afire and casualty insurance policy with extended coverage endorsements for the full replacement value of the Premises as the Landlord may reasonably determine from time to time. (b) F Boiler and Rental Loss Insurance. Boiler interruption and rental loss insurance in an amount sufficient to protect Landlord from any loss of rental income resulting from boiler failure or any other reason. 9.3.2 Real Property Taxes and Assessments. Tenant's Proportionate Share of all real property taxes and general and special assessments levied and assessed against the Building improvements on the land of which the Premise are a part. Each year Landlord shall notify Tenant of Landlord's calculation of Tenant's Proportionate Share of the real property taxes and assessments. Tenant shall pay Tenant's Proportionate Share of said taxes or assessments in the manner set forth in Section 9.4. Upon written request, Landlord will furnish Tenant with a copy of the Tax assessment bill. Landlord may require from Tenant, upon reasonable written notice from Landlord, a payment of the Tenant's Proportionate Share of such real property taxes and/or assessments to Landlord on a periodic basis. If this Lease commences or terminates other than on January 1 and December 31 respectively, taxes and assessments payable shall be prorated in the first and last calendar years of the Lease Term, Morris Piha Management Group, Inc. 5 /n- In -til r)-1 9.3.3 Common Area Expenses. To the extent not covered by other provisions of this Lease, Tenant shall pay Tenant's Proportionate Share of the following costs associated with Common Areas of the Building in the manner set forth in Section 9.4: (a) All real estate taxes, including assessments, all insurance costs, all utility costs and all costs to maintain, repair and replace common areas, parking lots, sidewalks, driveways and other areas used in common by the tenants of the Building (including, but not limited to HVAC, signs and parking)• provided. however. that such costs shall be amortized over (b) All costs to supervise and administer the Common Areas, parking lots, driveways and other areas used in common by the tenant or occupants of the Building. The costs shall include such fees as may be paid to a third party, including management fees in connection with the same and shall include, in addition, a fee to Landlord to supervise and administer the same in an amount equal to fifteen percent (15%) of the total costs of Subsection (a) and (b). ,ot- (c) Any parking charges, utility surcharges, or any other costs levied, assessed or imposed by or at the direction of, or resulting from statutes or regulations, or interpretations thereof, promulgated by any governmental authority in connection with the use or occupancy of the Premises or the parking facilities serving the Premises. 9.4 Payment of Additional Rent. Tenant shall pay Additional Rent described in Section 9.3 or elsewhere, in the manner set forth herein: 9.4.1 Additional Monthly Rent. On the Commencement Date or as soon as possible thereafter, Landlord shall submit to Tenant a statement of the estimated total Additional Rent owed by Tenant under Section 9.3 for the period from the Commencement Date to the end of the calendar year. Tenant shall pay such estimated Additional Rent in monthly payments equal to the amount of the Additional Rent divided by the number of full months remaining in the period from the Commencement date to the end of the calendar year (the 'Additional Monthly Rent'). The Additional Monthly Rent shall be paid concurrently with the monthly payment of the Minimum Rent and shall be adjusted as provided in Section 9.4.2 herein. 9.4.2 Adjustments Statement. By March 1 of each year of the Lease Term, Landlord shall endeavor to provide Tenant with a statement showing the actual Additional Rent for the prior calendar year (the 'Adjustments Statement'). If the total of the Additional Monthly Rent payments which Tenant has made for the prior calendar year is less than Tenant's Proportionate Share of the actual Additional Rent for such period, Tenant shall pay within ten (10) days after receipt of the Adjustments Statement, an amount equal to (i) the deficiency for the previous calendar year, plus (ii) the deficiency due to Additional Monthly Rent payments made in the current calendar year prior to such Additional Monthly Rent being adjusted as set forth in Section 9.4.3. Failure of Landlord to submit Adjustment Statements shall not be deemed to be a waiver of Tenant's obligation to pay sums as required by this Section 9.4. 9.4.3. Adjustment of Additional Monthly Rent. The amount of Additional Monthly Rent owing in the current calendar year shall be adjusted concurrently with Landlord's provision of the Adjustments Statement to Tenant. Taking into account the actual amount of the Additional Rent for the previous calendar year, Landlord shall submit to Tenant as part of the Adjustments Statement (i) an estimate of the total Additional Rent for the current calendar year and (ii) the adjusted Additional Monthly Rent amount based on such estimate. 9.4.4 Deficiency/Overpayment Even though the term has expired and Tenant has vacated the Premises, when the final determination is made of Tenant's Proportionate Share of the Additional Rent for the year in which the Lease terminates, Tenant shall immediately pay any deficiency between the total of the Additional Monthly Rent payments made and the actual Additional Rent due. Any overpayment made shall be immediately rebated by Landlord to Tenant, provided there are no outstanding rents or charges due. This provision shall survive termination of this Lease. 10. MAINTENANCE, REPAIRS AND ALTERATIONS. 10.1 Landlord's Obligations. Landlord shall maintain and repair the foundations, all utility systems including heating. ventilation and air conditioning systems ('HVAC''). exterior walls and the roof covering and roof structure of the Building. [Except as odi&Xisi required by Seefio i 13 rep -di ig , 71f any of this maintenance and/or repair is required in whole or in part because of the negligence of the Tenant, its agents or invitees, Tenant shall pay to Landlord the reasonable cost of the repairs. Except as provided by Section 14 regarding reconstruction, there shall be no abatement of rent, and no liability of Landlord, due to any injury or interference with Tenant's business arising from Landlord's performance of any maintenance or repair which it is required or permitted to perform runless caused by Landlord or its agents' negligence. Tenant ovai ve5 a iV right owhich it iney have under a ty currerit or future let. or- ordi tance to make repaim at La idlord"i expense: 10.2 Tenant's Obligations. Tenant shall, at Tenant's sole cost and expense, keep in good condition, maintenance and repair,reasonable wear and tear excepted. all portions of Hie Premises nat req.ired to be maintained bl Emidlord i Seeiioii , ' any storefront, all interior walls or partitions and interior portions of exterior walls, doors, exterior [and) interior glass, • H SNC=) Tenant shall, upon expiration or sooner termination of this Lease, surrender the Premises to Landlord in good and,.,,- Morris ndMorris Piha Management Group, Inc. 6 13-1 Z clean condition, ordinary wear and excepted. Any damage to adjacent premises caused by Tenant's nnyli ent ,use of the Premises shall be repaired at the sole cost and expense of Tenant. If Tenant fails to perform the maintenance, repair or replacement required by this Section 10.2 or to surrender the Premises in the condition required by this Section, Landlord shall have the right to perform the necessary work, after notice to Tenant to allow Tenant to perform the work. at Tenant's expense, and Tenant agrees to reimburse all costs incurred by Landlord. Lamellord shall have !he right to ce itmet for such sen ices as I '"NG niahilene ire aivel bi" Tenamt (or cost for such service. *and all interior plumbing and lighting fixtures. 10.3 Goverment Repairs. In the event any governmental agency requires major repairs or modifications to be made to the Premises, which repairs are the obligation of Landlord and cannot, in Landlord's judgment, be justified by the Minimum Rent, the Landlord shall have the right to cancel and terminate this Lease by giving Tenant ninety (90) days written notice. Major repairs for purposes of this Section shall be repairs or modifications with a cost exceeding six (6) months' Mirtimvert Rent under this Lease, However, Tenant may elect in writing within fifteen (15) days of Tenant's receipt of the ninety (90) days notice of cancellation from Landlord to make these repairs at its sole cost and expense, in which event this Lease shall remain in full force and effect. 10.4 Alterations and Additions. Tenant shall not make or permit any alteration, addition or improvement to the Premises without the prior written consent of Landlord, which consent shall not be unreasonably withheld. Tenerit shall pay amr-and all costs 4 wuned by I:andloid in reviewing find evaluating any mques! for gie consent required by this see Any alteration, addition or improvement consented to by Landlord shall be made in a good workmanlike manner at Tenant's sole cost and expense and shall comply with all applicable laws, codes, ordinances, rules and regulations. All alterations, additions or improvements (including but not limited to wall and window covering, paneling and built-in cabinet work, but excluding movable furniture and trade fixtures) shall at once become a part of the Premises belonging to the Landlord and shall be surrendered with the Premises at the expiration of this Lease, unless Landlord demands their removal as set forth below. Upon expiration or sooner termination of the Lease term, Tenant shall, at Tenant's sole cost and expense, with all due diligence, remove any alterations, additions or improvements made by Tenant which reduce the fair market value of the Premises and designated by Landlord to be removed; provided Landlord gives Tenant not less than thirty (30) days advance written notice prior to termination of this Lease. Tenant shall, at its sole cost and expense, repair any damage to the Premises caused by such removal. If Tenant fails to remove any such alterations, additions or improvements, Landlord may do the same at Tenant's expense. 11. LIENS 11.1 Liens. Tenant shall keep the Premises free from any liens arising out of any work performed, materials furnished or obligations incurred by Tenant, and agrees to hold Landlord harmless from the same. Landlord may require, at Landlord's sole option, that Tenant provide, at Tenant's sole cost and expense, a materialman's labor and performance bond acceptable to Landlord in an amount equal to one and one-half times the estimated cost of any improvements, additions or alterations to the Premises which the Tenant desire to make, to insure Landlord against any liability for mechanics' and materialmen's liens, and to insure completion of the work. 11.2 Encumbrances. The Tenant shall not cause or suffer to be placed, filed or recorded against the title to the Premises, the Building, or any part thereof, any mortgage, deed of trust, security agreement, financing statement or other encumbrances. Further, in no event shall the Tenant lien or mortgage any leasehold improvements, alterations, additions or improvements thereto, except trade fixtures, appliances and equipment which are owned by Tenant and which are not, and which do not become a part of the Premises. The form of any such mortgage, deed of trust or other security agreement or financing statement which includes a legal description of the Premises or the Building shall be subject to Landlord's prior written approval, which approval shall be subject to such conditions as the Landlord may deem appropriate. Tenant agrees to indemnify and hold Landlord and its agents harmless from any and all claims arising from Tenant's use of the Premises, from the conduct of Tenant's business, or from any activity, work or things done or permitted to be done by Tenant on the premises or elsewhere, pxfept for claims involvipp, landlord or Landlord's agents' or invitees' negligent actions. Tenant further agrees to indemnify and hold Landlord and its agents harmless from any and all claims arising from, in connection with, or related to any default by Tenant in the performance of its obligations under this Lease, or any negligent act, omission or neglect of Tenant, its agents or invitees. Tenant further agrees to indemnify and hold Landlord and its agents harmless from all costs (including but not limited to attorney's fees) incurred by Landlord in connection with its defense against any claim made against the landlord as to which Tenant is required to indemnify Landlord pursuant to this Section. Tenant shall give prompt notice to Landlord of any casualty or accident in the Premises. Upon notice by Landlord, Tenant, at Tenant's expense, shall defend Landlord, , in any action or proceeding brought against Landlord by reason of any such claim. Tenant further assumes all risk of, and waives and releases all claims against Landlord for any damages to person or property sustained by Tenant, or any person claiming through Tenant, which damage results from any accident or occurrence in or on the Premises from any cause involving Tenant's negligence rvhttteoever. Morris Piha Management Group, Inc. &-13 `r Neidierl:midlwd ior:Feriam! shall be I *able to the other o. to any hisummeecomparry (byway of 4ub."gittiom orothenvise) &stj-*ib the othe -pany foram y loss or dainage to it, ry buildhig; siracture or other tairsible p�opeitr, or amv resukims less o come, & loiseq wder vvorker'q compemsetioi lavvs arld bemefib, eveii giough such loss or e6mage might have beeri benefiting !he partV stiffe -0 ir, such loss or damage or vygkg required to be coverved by iristirance vumuamt to this Lease. 0► R111114110010A 14.1 Effect of Insured Loss. Except as provided below, if the Premises are damaged by fire or other cause covered by Landlord's property insurance and Premises can be repaired and restored within thirty (30) days. Landlord agrees to repair the same, and this Lease shall remain in full force and effect. 14.2 landlord's or Tenant's Options. Landlord or Tenant shall have the option either to_csusp_end the Lease and abate the Rent to allow Landlord to repair or rebuild the Premises or landlord or Tenant shall have then ttZion to terminate this Lease if the Premises or any portion of the Building is damaged if. (a) The damage results from any cause not covered by Landlord's insurance and s ihsection (c) applies; (b) Insurance proceeds are insufficient to fa(iy pay for at least 80% of such repair and restoration; (c) The cost to repair exceeds twenty-five percent (25%) of the then complete replacement cost of the Premises and the Building; (d) The repair or restoration, in cannot reaconahly be completed within six (6) months of the damage; or (e) The damage occurs during the last twelve (12) months of the Lease Term. Either Tenant or landlord shall exercise its option to terminate this Lease by giving the other party to Teriant, at any time within e;xty (60) thirty (30) days after the damage, written notice of its election to terminate this Lease as of the date specified in the notice. The termination date shall not be less than thirty (30) nor more than sixty (60) days after the date of notice. If Landlord fails to give notice within the sixty (60) days, it shall be deemed to have elected to repair or restore the damage. If Landlord terminates this Lease as provided by this Section 14.2, this Lease shall automatically terminate on the date specified in Landlord's notice. Neither party shall have further liability to the other, except for obligations which were accrued and unpaid as of the date of termination specified in Landlord's notice, and except that Landlord shall return any unused balance of the Security Deposit to Tenant and shall ahate Rent as provided in Section 14.3. 14.3 Rent Abatement. This lease shall remain in full force and effect if Landlord elects to repair the damage, or until the termination date specified in the notice of termination, as applicable, except that the Minimum Rent aid arty 4dditional Rent shall be proportionately abated from the date of damage until the repairs are completed, or until the specified termination date, as applicable. Such proportionate abatement shall be based upon the extent to which the damage materially interferes with the business carried on by Tenant in the Premises. 14.4 Tenant's Repair Obligations. landlord shall not be required to repair or replace any leasehold improve"e Is fixtures or other personal property of Tenant, all of which shall be repaired or replaced promptly by Tenant if Tenant elects to confinup I ease. 15.1 Total or Partial Taking. If any portion of the Premises is taken or appropriated by any public or quasi -public authority under the power of eminent domain, or is purchased by the condemner in lieu of condemnation proceedings, either party shall havAe right to terminate this Lease upon thirty (30) days written notice given to the other party within sixty (60) days after the date that possession is surrendered to the condemner. If neither party elects to terminate, the Minimum Rent and any Additional Rent thereafter to be paid shall be equitably reduced. If any part of the Building other than the Premises is so taken or appropriated, or is purchased by the condemned in lieu thereof, Landlord shall have the right at its option to terminate this Lease upon thirty (30) days written notice to Tenant given within sixty (60) days after the date that possession is surrendered to the condemner. 15.2 Damages. Landlord reserves all rights to the entire damage award or payment for any taking by eminent domain and Tenant shall make no claim whatsoever against Landlord for damages for termination of its leasehold interest in the Premises or for interference with its business. Tenant hereby grants and assigns to Landlord any right Tenant may now have or hereafter acquire to damages related to any taking by eminent domain and agrees to execute and deliver such further instruments of assignment thereof as landlord may from time to time request. Tenant shall, however, have the right to claim from the condemning authority all compensation that may be recoverable by Tenant on account of any loss incurred by Morris Piha Management Group, Inc. b-1 `I M�; %W W. Tenant in removing Tenant's merchandise, (urniture, trade fixtures and equipment or for damage to Tenant's business provided, however, that Tenant may claim such damages only if they are awarded separately in the eminent domain proceeding and not as part of landlord damages. 16. ASSIGNMENT AND SUBLETTING 16.1 Restriction. Tenant shall not, without the prior written consent of Landlord. which consent shall not he unreasonably withheld: (a) Voluntarily, involuntarily or by operation of law, assign, transfer, mortgage, pledge, hypothecate or otherwise encumber this Lease, or any interest in it, or any right of privilege appurtenant to it; (b) Sublet all or any part of the Premises; or (c) Allow any other person, except the agents and invitees of Tenant, to occupy or use any portion of the Premises. Landlord's consent shall not be unreasonably withheld. t1G-) Any assignment, transfer, encumbrance, subletting or use without Landlord's consent shall be void and shall, at the option of Landlord, constitute a material default under this Lease. An assignment or sublease consented to by Landlord shall not be binding upon Landlord unless the assignee or subtenant delivers to Landlord: (a) An original executed assignment or sublease; (b) Any collateral agreements; and (c) An instrument containing said assignee's or sublessee's assumption of all of the obligations of the Tenant under this Lease, in form and substance satisfactory to Landlord. The assignee's or sublessee's failure to execute such a covenant shall not waive, release or discharge the assignee or sublessee from its liability for the performance of the Tenant's obligations under this lease. Regardless of Landlord's consent no subletting or assignment shall release Tenant of Tenant's obligations or alter the primary liability of Tenant to pay rent and to perform all the obligations of the Tenant under this Lease. 16.2 Costs. Te in it shall -e* nburse Land'ood 16 - Ml reammthic atio iier's lees amd other costs incan-ed by Earidlord in connection vvedi die -ev Oev. oFa id preparation ofelocu ne its i icide it to any itelties! by Terian! le Earidloid's consent. Each request for Landlo.tl's comsem 5hall be accompa iied by a deposit in die ainatirit oF:Foo I iti idred Dollars ($200) to be applied 16.3 Included Transfers. If Tenant is a corporation, any transfer of this Lease by merger, consolidation, reorganization or dissolution shall constitute a transfer for the purposes of this Section. If Tenant is a corporation, any change in the ownership of, or power to vote, a percentage of Tenant's now -outstanding stock which results in a change of controlling persons, or any transfer of all or substantially all the assets of Tenant shall constitute a transfer for the purposes of this Section. If Tenant is a partnership, any partial or total withdrawal of any of the present general partners, and any transfer by a general partner of all or part of his partnership interest shall constitute a transfer for the purposes of this Section. 16.4 )udicially Imposed Assignment. If the non -assignment provisions of this Section are deemed to be unenforceable in any bankruptcy proceeding, Landlord and Tenant agree that a showing of adequate assurance of future performance by a prospective assignee of this Lease must include, without limitation, clear and convincing evidence that: (a) Landlord will receive the full benefit of each and every term of its bargain in this Lease, except for the non - assignment and related termination clauses; p)) The Premises will continue to be used solely for the use permitted by this Lease; (c) A judicially imposed assignment will not cause an acceleration or increase in the interest rate, or fees in connection with, any indebtedness of Landlord secured by Landlord's interest in the building or this Lease; and (d) The prospective assignee has the means, expertise and experience to operate the business to be conducted upon the Premises in a first-class manner. 16.5 Assignment by Landlord If Landlord shall assign its interest under this Lease or transfer its interest in the Premises, Landlord shall be relieved of any obligation accruing hereunder after such assignment or transfer, provided that Landlord's successor in interest agrees in writing to assume all of Landlord's obligations ijadpr the I ase, and such transferee shall thereafter be deemed to be the Landlord under this Lease. Morris Piha Management Group, Inc. 9 I 15-15 4W NO 17. REMEDIES 1N DEFAULT 17.1 Defaults. The occurrence of anyone or more of the following events shall constitute a default and breach of this Lease by Tenant: (a) The vacating or abandonment of the Premises without providing one hundred twenty 0 20) days writte notice to the Landlord and nonpayment of Rent by Tenant. (b) The failure by Tenant to make when due any payment of rent or any other payment required to be made by Tenant under this Lease, where such failure shall continue for a period of three (3) days after written notice of default from Landlord to Tenant. In the event that Landlord serves Tenant with a notice to pay rent or vacate pursuant to applicable unlawful detainer statutes, such notice to pay rent or vacate shall also constitute the notice required by this Section. (c) The failure by Tenant to observe or perforin any of the covenants, conditions or provisions of this Lease to be observed or performed by Tenant, other than those described above, for a period of thirty (30) days after written notice of such default from Landlord to Tenant; provided, however, that if the nature of Tenant's default is such that more than thirty (30) days are reasonably required for its cure, then Tenant shall not be deemed to be in default if Tenant commences a cure within that thirty (30) day period and thereafter diligently prosecutes the cure to completion. (d) Tenant becomes a 'debtor' as defined in the Bankruptcy Code, 11 USC Section 101, or any successor statute, or if trustee or a receiver is appointed to take possession of substantially all of the Tenant's assets located at the Premises or of Tenant's interest in this Lease. (e) Any other occurrence which constitutes a material default under other provisions of this Lease. 17.2 Remedies. In the event of a material default or breach by Tenant, Landlord may at any time thereafter, Afta reasonable notice and demand. and without limiting Landlord in the exercise of any right or remedy which Landlord may have by reason of such default or breach: (a) Terminate Tenant's right to possession of the Premises by any lawful means, in which case this Lease shall terminate and Tenant shall immediately surrender possession of the Premises to Landlord. In this event, Landlord shall be entitled to recover from Tenant all damages allowed by applicable law incurred by Landlord by reason of Tenant's default. neludhig-, but ne! limited to. the mo of recove, ing po�session of Hie Premises, expenses of retelling (b) Maintain Tenant's right to possession in which case this Lease shall continue in effect whether or not Tenant shall have abandoned the Premises. In this event, landlord shall be entitled to enforce all of Landlord's rights and remedies under this Lease, including the right to recover the rent as it becomes due under the Lease• provided. however. that Landlord has a duty to mitigate its damages by seeking to relet the Premises. (c) Pursue any other remedy now or afterwards available to Landlord under the laws or judicial decisions of the state where the Premises are located. 17.3 Late Charges. Tenant acknowledges that late payment by Tenant to Landlord of rent and other sums due under this Lease will cause Landlord to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. These costs include, but are not limited to, processing and accounting charges, and (ate charges which may be imposed on Landlord by the terms of any mortgage or deed of trust covering the Premises. Accordingly, if any installment of rent or other sums due from Tenant shall not be received by Landlord or Landlord's agent within five (5) fifteen f15) days after the amount shall be due, then of a notice to Tenant, Tenant shall pay to Landlord a late charge of Seventy -Five Dollars ($75) plus. after notice from Landlord to Tenant of such delinquent amount. one percent (1 %) per month interest on the delinquencies from the roti a date due until payment. The parties agree that this late charge plus interest represents fair and reasonable estimate of the cost Landlord will incur by reason of late payment by Tenant. Acceptance of the late charge by Landlord shall in no event constitute a waiver of Tenant's default with respect to the overdue amount, nor prevent Landlord from exercising any of the other rights or remedies granted to Landlord under this Lease, or at law or equity. 17.4 Default by Landlord. Landlord shall not be in default unless Landlord fails to perform obligations required of Landlord within a reasonable time, but in any event within (30) days after written notice by eeoifiednnaii by Tenant to Landlord and to the holder of any first mortgage or deed of tout covering the Premises whose name and address shall have theretofore been furnished to Tenant in writing. Said notice shall specify wherein Landlord has failed to perform such obligation; provided, however, that if the nature of Landlord's obligation is such that more than thirty (30) days are reasonably required for performance, then Landlord shall not be in default if Landlord commences performance within such thirty (30) days period and thereafter diligently prosecutes the same to completion. Tenant further agrees not to invoke any of its remedies under this Lease until said thirty (30) days have elapsed. In no event she"Teriant have die right to terminate dii Morris Piha Management Group, Inc. 10 I>1� .. %00 18. Tenant shall faithfully observe and comply with all recorded covenants, conditions and restrictions affecting the Premises, all existing rules and regulations which Landlord shall deliver to Tenant prior to execution, and all reasonable rules and regulations that Landlord may from time to time make to facilitate the reasonable operation of the Building of which the Premises are a part or the complex in which it is located or to comply with the requirements of any governmental entity or insurance company (collectively called 'Rules'). Landlord reserves the right to modify the Rules from time to time. The Rules and any reasnnable modifications shall be binding upon Tenant upon delivery of a copy of the Rules to Tenant. Landlord shall not be responsible to Tenant for the failure of any other tenants or occupants to comply with the Rules; provided however. that Landlord shall use its best efforts to renuire such compliance by the other to antsru anp t_ c or invitees A; 19. HOLDING OVER 19.1 Holding Over. I(Tenant remains in possession of the Premises or any part thereof, after the expiration of the Lease Term consictimz of the Initial fftntifndendedElerms. with the express written consent of Landlord (which consent may be granted, withhelgor conditioned at the sole discretion of Landlord), such occupancy shall be a tenancy from month to month at a minimum rent in an amount equal to one hundred twenty percent (12016) of the last monthly Minimum Rent, plus all additional rent and other charges payable hereunder, and upon all the terms hereof applicable to a month-to-month tenancy. 19.2 Abandonment. Fxcent as otherwise airthorj7pd herein. Tenant agrees not to vacate or abandon the Premises at any time during the Lease Term. Should Tenant vacate or abandon said Premises or be dispossessed by process of law or otherwise, such abandonment, vacation or dispossession shall be deemed a breach of this Lease and, in addition to any other rights which Landlord may have, Landlord may remove any personal property belonging to Tenant which remains on the Premises and store the same, the cost of such removal and storage to be Tenant's liability. 19.3 Voluntary Surrender. The voluntary or other surrender of this Lease by Tenant, or a mutual cancellation thereof, shall not work a merger, but shall, at the option of Landlord, terminate all or any existing subleases or subtenancies, or operate as an assignment to it of any or all such subleases or subtenancies. off) After reasonable notice to Tenant, Landlord reserves the right to enter the Premises to inspect the same, to show the Premises to prospective purchasers or tenants, to perform any alterations, improvements, repairs or maintenance, to provide any services that Landlord may deem necessary or desirable and to do any other act permitted under this Lease. Tenant hereby waives all claims for damages occasioned by such entry, rmlr.sc sx aawges re ruced b}Sandlord's negligence. Let, dierd No entry by Landlord shall be construed or deemed to be a forcible or unlawful entry into, ora detainer of, the Premises, or an eviction of Tenant from all or any portion of the Premises. 21. ESTOPPEL CERTIFICATE Upon not less than ten (10) days prior written notice from Landlord, Tenant shall execute, acknowledge and deliver to Landlord a written estoppel certificate stating certain facts including, but not limited to: (a) That this Lease is unmodified and in full force and effect (or, if modified, stating the nature of such modification and certifying that this Lease as so modified is in full force and effecO; tb) The date to which the Mirtinmm Rent and othLsr charges are paid; and (c) That there are not, to Tenant's knowledge, any uncured defaults on the part of the Landlord (or specifying such defaults if -any are claimed). The statement shall be in any form that Landlord provides to Tenant and roved by Tenant's legal counsel. Any such statement may be relied upon by any prospective purchaser or encumbrancer of all or any portion of the Building or the real property upon which it is located. 22. Tenant shall not place any signs or symbols in the windows or on the doors of the Premises or upon any part of the Building without the prior written consent of Landlord, which consent shall not be unreasonably withheld. Landlord is deemed to consent to any signs in compliance with the City's sign code. Any signs or symbols shall be in conformity with other signs on the Premises and the Building, the Rules, and all applicable laws, ordinances and regulations. Tenant shall maintain any such sign or symbol in good condition and repair at its sole cost and expense. Tenant shall remove such sign or symbol at its sole cost and expense upon termination of the Lease Term, and shall repair all damage caused by the removal. If Tenant Morris Piha Management Group, Inc. 11 Q�I � fails to remove any sign or symbol and/or repair any damage caused by its removal after notice from Landlord. Landlord may have the same removed and/or repaired at Tenant's expense. . I ; 101 14 1 VK91: t 23.1 Corporate Authority. If Tenant is a corporation, each individual executing this Lease on behalf of said corporation represents and warrants that he or she is duly authorized to execute and deliver this Lease on behalf of said Corporation, in accordance with a duly adopted resolution of the board of directors of said corporation authorizing and consenting to this Lease; specifically authorizing the designated officers signing this Lease to execute, acknowledge and deliver the same without the consent of any other officer or officers; resolving that such action and execution is in accordance with the bylaws of said corporation; and, resolving that this Lease is binding upon said corporation in accordance with its terms. 23.2 Partnerships. If the Landlord herein is a limited or general partnership, it is understood and agreed that any claims by Tenant against Landlord shall be limited to the assets of the limited or general partnership„ arid farthemiere, ► t: NUK01YAM1010P 24.1 Exhibits and Addendums. Any exhibits and addendums attached to this Lease are a part hereof and are fully incorporated in this Lease by this reference. 24.2 Non -Waiver of Default. Either party's Landlord'q waiver of any term, covenant or condition of this Lease shall not be deemed to be a waiver of any other term, covenant or condition or any subsequent default under the same or any other term, covenant or condition. Landlord's acceptance of any sum shall not be deemed to be a waiver of any preceding default by Tenant, other than the failure of Tenant to pay the particular sum so accepted, regardless of Landlord's knowledge of such preceding default at the time it accepts the sum. 24.3 Joint Obligations. If there is more than one Tenant, the obligations of the Tenants under this Lease shall be joint and several. 24.4 Section Titles. The section titles of this Lease are not a part of this Lease and shall have no effect upon its construction or interpretations. 24.5 Time. Time is of the essence of this Lease and each and all of its provisions in which performance is a factor, including, but not limited to, Tenant's execution of estoppel certificates and subordinations and Tenant reimbursements to Landlord. 24.6 Successors and Assigns. The covenants and conditions of this Lease apply to and bind the heirs, successors, executors, administrators and assigns of all parties of this Lease. 24.7 Recordation. A short form memorandum may be recorded at the request of either party, and at the requesting party's expense. 24.8 Quiet Possession. Subject to all the provisions of this Lease and provided Tenant pays all sums due under this Lease and observes and performs all of the other Material covenants, conditions and provisions to be observed and performed by Tenant, Tenant shall have quiet possession of the Premises for the entire Lease Term, against any adverse claim of Landlord or any party claiming under Landlord. 24.9 Prior Agreements. This Lease contains the full agreement of the parties with respect to any matter covered or mentioned in this Lease. No prior agreements or understandings pertaining to any such matter shall be effective for any purpose. This Lease may be amended or supplemented only by an agreement in writing signed by the parties or their respective successors in interest. 24.10 Inability to Perform. Except as provided in Section fs-1-3-end] 14, this Lease and Tenant's obligations hereunder, including Tenant's obligation to make payments, shall not be affected or impaired because Landlord is unable to fulfill any of its obligations, or is delayed in doing so, if such inability or delay is caused by reason of weather, strike labor troubles, acts of God, or any other cause beyond the reasonable control of the Landlord. 24.11 Severability. Any provision of this Lease which shall prove to be invalid, void or illegal shall in no way affect, impair or invalidate any other provision, and all other provisions shall remain in full force and effect. 24.12 Cumulative Remedies. No remedy or election under this Lease shall be deemed to be exclusive but shall, whenever possible, be cumulative with all other remedies at law or in equity. 24.13 Choice of Law. This Lease shall be governed by the laws of State of Washington. 24.14 Attorney's Fees. In the event any action or proceeding is brought by either party against the other arising out of or in connection with this Lease, each party thepreraiting party shall pay Its own be entitled to recover its cost, Morris Piha Management Group, Inc. 12 Ind • %000 W attorney's and accountant's fees and costs incurred in such action or proceedings, including any appeal. 24.15 Notices. All notices or demands which are required or permitted to be given by either party to the other under this Lease shall be in writing. Except as otherwise provided in any addendum, all notices and demands to the Tenant shall be either personally delivered or sent by the US Mail, registered or certified, postage prepaid, addressed to the Tenant at the Premises, or at the address set forth below, or to such other place as Tenant may from time to time designate in a notice to the Landlord. Except as provided in any addendum, all notices and demands to the Landlord shall be either personally delivered or sent by US Mail, registered or certified, postage prepaid, addressed to the Landlord at the address set forth below, or to such other person or place as the Landlord may from time to time designate in a notice to the Tenant. Any notices sent by US Mail as provided above shall be deemed to have been received three (3) days after deposit into the mail as set out in Section [+-1.2j 1,U and 8441 Jd2. 24.16 Subordination. At Landlord's option, this Lease shall be subject to and subordinate to the lien of any existing or Aq future mortgages or deeds of trust in any amount or amounts whatsoever, now or hereafter placed in or against the Building or the real property upon which it is located, and to any extensions, renewals or replacements thereof, without the necessity of the execution and delivery of any further instruments on the part of Tenant to effectuate such subordination. Upon Landlord's request, Tenant will execute and deliver such further instruments as may be appropriate to evidence such subordination of this lease. As long as Tenant is not in default under this Lease, said subordination shall not disturb Tenant's right to possession of the Premises. 24.17 Attomment In the event of foreclosure, or the exercise of the power of sale under any mortgage or deed of trust made by Landlord covering the Premises, or in the event of any sale in lieu thereof, Tenant shall attom to the purchaser upon any such foreclosure or sale and recognize such purchaser as Landlord under this Lease; provided said purchaser expressly agrees in writing that, so long as Tenant is not in default under the Lease, Tenant's possession and occupancy of the Premises shall not be disturbed and said purchaser will thereafter perform all of the obligations of landlord under this Lease. 24.18 Guarantor. In the event that there is a Guarantor of this Lease, the Guarantor shall have the same obligations as Tenant under this Lease. 24.19 Compliance with Environmental Laws. The parties acknowledge that there are certain federal, state and local laws, regulations and guidelines now in effect and that additional laws, regulations and guidelines may hereafter be enacted relating to or affecting the Premises and the larger parcel of land upon which the demised Premises may be a part, concerning the impact on the environment of construction, land use, the maintenance and operation of structures, and the conduct of business. Tenant shall not cause, or permit to be caused, any act or practice by negligence, or omission, or other wise, that would adversely affect the environment or do anything or permit anything to be done that would violate any of said laws, regulations or guidelines. Any violation of this covenant shall be an event of default under this Lease. Tenant shall indemnify and hold Landlord harmless from any and all cost, expense, claims, losses, damages, fines and penalties, including reasonable attorneys' fees, that may in any manner arise out of or be imposed because of the s2te failure of Tenant to comply with this covenant. The foregoing shall cover all requirements whether or not foreseeable at the present time and regardless of the expense attendant thereto. 24.20 Riders and Exhibits. The Riders and Exhibits referred to in Section (4461 U are attached to this Lease and made a part of it. Tenant warrants that it has had no dealing with any real estate broker or agent in connection with the negotiation of this Lease except for Morris Piha Management Group, Inc. and it knows of no other real estate broker or agent who is entitled to a commission in connection with this Lease. Landlord agrees to pay Morris Piha Management Group, Inc. upon the execution of this Lease by both Landlord and Tenant, the Broker Fee for negotiating this Lease. 26. LEGAL DOCUMENT Tenant understands that this is a legally binding contract. Tenant has carefully read each of its provisions, and prior to execution of the Lease, represents and warrants that Tenant has discussed the legal effect of the Lease with Tenant's legal counsel. 27. DISCLOSURE OF AGENCY REPRESENTATION At the signing of this Lease Agreement, Morris Piha Management Group, Inc. represents the Landlord. Each party signing this document confirms that prior oral and/or written disclosure of agency was provided to them in this transaction. Morris Piha Management Group, Inc. 13 b— Iq v IN WITNESS WHEREOF, the parties have executed this instrument as of the day and year first above written: LANDLORD: IN7 A NO. III By: Its: en Part TENANT: CITY OF FEDERAL WAY By. Kenneth E. N Its: City Manager APPROVED AS TO FORM: nd.lin ell�CityAttimy THE OBLIGATIONS OF TENANT ARE GUARANTEED BY: N/A K:\document\lease2.pd 11/25/98 Morris Piha Management Group, Inc. 14 6-10 STATE OF WASHINGTON ) ) ss. PARTNERSHIP ACKNOWLEDGMENT COUNTY OF KING ) On this day personally appeared before me [)Ov I cl Be,n of - e k tope known to be the individual who executed the within and foregoing instrument as duly appointed r e1-' for INTER CO -0P USA NO. 111, and acknowledges that he/she signed the same as his/her free and voluntary act and deed and on oath stating that his/her powers authorizing the execution of this instrument have not been revoked. GIVEN under my hand and official seal the -t A day of 0eCel'Atti r 1991b_. 3EN �t4Q \068 G s Or a+001AFly A. �F, ,NASA\ STATE OF WASHINGTON ss. COUNTY OF KING y"41 X" - NOTARY SIGN TU E PRINTED NAME OF NOTARY Notary Public in and for the State of Washington, residing at kr 1r-1C(A6 My Commission Expires: 4-- ici -a(Doo On this day personally appeared before me, the undersigned, a Notary Public in and for the State of Washington, duly commissioned and swom, Kenneth E. Nyberg , to me known to be the City Manager of the City of Federal Way, a Washington municipal corporation, the corporation that executed the foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said corporation, for the uses and purposes therein mentioned, and on oath stated that he was authorized to execute the said instrument. GIVEN under my hand and official seal this � day of Dece�i-, �er , 199' . EILEEN ROBINSON STATE OF WASHINGTON NOTARY-•- PUBLIC YY MUU15SION EXPIRES 1-29-02 Morris Piha Management Group, Inc. NOTA Y SIGNATURE Erle- e -h Robi,Sos7 PRINTED NAME OF NOTARY Notary Public in and for the State of Washington My commission expires: %'029-6IL- P)' 2 r.r ._. To Be Made A Part Of The Commercial Lease Document Under Date Of DECEMBER 16, 1998, By And Between INTER CO-OP USA NO. III, As Landlord, And CITY OF FEDERAL WAY, As Tenant. Provided the Tenant is not in material default, Tenant shall have the right to cancel this Lease by providing one -hundred twenty (120) days prior written notice to Landlord. Notice may be given anytime after the 18th month of the Lease term. Accompanying the written notice to Landlord shall be a check in the amount equal to five (5) months of rent at $19,408.79 per month, or remaining lease payments due under the Lease, whichever is less, representing a penalty and liquidated damages for exercising said cancellation. Tenant shall remain obligated to pay rent during the 120 day period after notice is given. Morris Piha Management Group, Inc. 16 In� O-ZZ- Nwe EXHIBIT A LEGAL DESCRIPTION PARCEL "9th Avenue Center" v Lot 11 of West Campus Business Park, as per Plat recorded in Volume 97 of Plats, pages 78 through 82. Records of King County: Together with an easement for community driveway purposes over the North 18 Feet of Lot 10 in said Pat: Situate in the County of King, State of Washington Morris Piha Management Group, Inc. 17 1 tnitie4� . o.s Bldg. B Federal Way Polloe 12,525 SF bldg. C Federal Way Police 4,070 SF F7Z5 l Way SF DatI1nD Conalructlan 722 SF Newta Gymnastics Industrlas rnftw Bldg. D 3,175 SF a�n All Square Footage Figures Are Approximate lorris Piha Management Group, Inc. Federal Way POpee 4,521 SF UPC & Unlcare ' 13,991 $F 81§n Tach Electric 3,292 SF 18 I -2N FAI 4. w w EXHIBIT C PARKING AREA a 1(D I { 5 1TU �(�I TI' 1'�/G.+ resp <e.vs r, av •T` — ti :, © sff oErru .laovE �.� f^.••Nc i• 31'w/os .06 y 1 . x '! •— ' � pN� 311TeY Y4(.Lio /�RMfA ...... �! S / t 606 I OT NJ �• 04 PL s i--- ' or Pc 1 M.:......,., •./gc,s .e.B:, , „ OL $ Pc � _ Ll Nce l �SS1,�VEYOR'S CERiIFICAI{QN1 i -.n-w-ionc i�UBLuJi1•s AN wost nopr= COAPCum �, { 1iAY A3li0CLtTLC1, A CALIFOUM INST>1tANl-E'CCY�AIiY. =5 Is T WCH IT IS BASED, WERE HARE . DFSAII REQtIIREHENTS FOR LAND ' AD08IED BY ALTA AIiD ACSK IN 1 ,z 91 ; NORTj1 EN [- j i PARKING SPACE CERIIFICAIION - /rOvivo CdvC•CL JE I.Y,Gwv.•./N r / V Cw y< 07 . T HEREIN CaTItY TO KOLL/OPIC 11 R.• F'cc W- ' j COHPOSED OF OREt W PROPERTY I; .00. n•.-•eAc ne Sri•.; �•<o • .<K. •c r.�us _ AND KOLL FtDEML NAY ASSQCIATi (� / . •rr_. .<.«i,. a .r•.. IRANSAMurCA TITLE INSURANCE t XWON ltAV6 I= WCATED RY Al _ zy I,-., AND 1N ARE._—_^ Morris Piha Management Group, Inc. 19 Ov. Inid 5.0 CITY OF FEDERAL WAY PARKS, RECREATION & CULTURAL SERVICES DEPARTMENT MEMORANDUM Date: January 29, 2002 To: Parks, Recreation, Human Services and Public Safetv Council Committee Via: David seIe t , ager From: Jon Jainga, Par Planning and Development Manager Subject: Proposed Property Acquisition — Armstrong Propert Background: January 17, 2002, The Parks and Recreation Commission hosted a public meeting at Illahee Jr. High School to ,atter public comment and input regarding the proposed acquisition of the Armstrong Property. Eighteen residences from around the proposed site participated at the public meeting and commented on several issues. Comments ranging from (1) leaving the site wooded and natural, (2) site drainage during the heavy rains, (3) extending the BPA Trail thru the site and (4) adding a play structure somewhere in a safe location. One resident even described the urban wildlife that exist on the property and would like to limit the amount of development so they would not lose the wildlife. Copies of the meeting minutes are attached for your review. The residence, which attended the public meeting, expressed support for the proposed acquisition. Public comments can be found in the meeting minutes. Staff' Recommendation: The proposed Armstrong acquisition is made up of five tax parcels. Four tax parcels are within the City of Federal Way and one tax parcel is located in Pierce County. The City has been in contact with Pierce County Parks Department and they are very interested in acquiring the Armstrong parcel that is within Pierce County for the continuation of the trail. At this time there is no definite decision by Pierce County. Staff recommends moving forward with the proposed property acquisition for the four tax parcels that are in the City of Federal Way, and recommends Pierce County to secure a purchase agreement for the tax parcel that is in Pierce County and if necessary to partner with Pierce County to secure this option. Council Committee Recommendation: The Parks and Recreation Conunission will review the proposed Property Acquisition at the February 7, 2002 meeting. Staff will report the Commission's recommendation at the February 11, 2002 Council Committee meeting. APPROVAL OF COMMITTEE REPORT: Committee Chair Committee Member Committee Member Armstrongj j � � Pb. do� PUBLIC MEETING ACQUISITION OF ARMSTRONG PROPERTY ILLAHEE JR. HIGH SCHOOL JANUARY 17, 2002 @ 6:00 P.M. Attendance: Jennifer Schroder, PRCS Director, Jon Jainga, Parks Planning and Development Manager, Kurt Reuter, Parks Maintenance Operations Superintendent and Peggy Wright, PRCS Administrative Assistant. 1� Mayor Jeanne Burbidge was in attendance as well as Parks and Recreation Commissioners C.T. Purdom, Chair, Don Dennis, Bill Foulkes, Karl Grosch, Neil Hellickson and George Pfeiffer. Chair Purdom welcomed those in attendance from the Armstrong neighborhood and had commissioners introduce themselves. He also introduced Jon Jainga who in turn introduced Jennifer Schroder, Kurt Reuter and BPA representative, Clint Bostwick and Claudia Peters, Pierce County Parks. Jainga explained that the purpose of the meeting was to collect public comment on the proposed acquisition of the Armstrong property. He displayed maps showing the property in different aspects — aerial maps, map showing how the property is laid out in King and Pierce Counties and maps showing how it lies in conjunction with the power lines and wetland areas. He and Schroder said the Armstrong family approached the City approximately one year ago and asked the City to consider purchasing the parcel. There was discussion with staff and residents on the BPA trail system and how it could be utilized throughout this property. Jainga stated that we cannot build in the wetland area but can use the buffer zone for trail areas. Residents had questions on the BPA power lines on the property that Clint Bostwick was able to answer concerning plantings, tree heights under and around the power lines plus restrictions on buildings in proximity to the lines. Jainga asked the attendees to please complete the last page of the handout with their ideas and drawings on where they would like to see trails, playground structure, etc. be located along with the parks survey and turn in to a staff member. He then opened it up for questions and answers with the following discussions: One neighbor of the property said during the rainy season there is water running from the wetland area across the property, dumping in to 15`x' Avenue SW and running down the street. He stressed that it is a heavy run-off at this time of year. Another resident showed recent photos of a pond that is not shown on any of the maps that is home for ducks and geese. C..-2 Public Meeting/Arnnstrong Property, January 17, 2002 Page 2 Another neighbor to the park is for preserving the area as natural as possible since greenbelts are becoming fewer in the city and possibly restore to former stage by plantings of trees and underbrush. She said 15'x' Ave. SW is a narrow street that cannot handle additional traffic and there are no parking areas available for park MOM. Is a playground area a consideration? And where on property? Would a fence be built along 15`x' Ave to separate property from the street? Would development of the park disturb the existing water main and would further clearing of trees and brush be done? What size playground would fit on the northern end of property? One resident stated there is a lot of wildlife in the area: raccoons, possum, deer and many types of birds. They don't want the area so developed that they lose the wildlife. Several of the residents supported the idea of the park as long as there would not be a parking lot to encourage more use. They prefer a neighborhood park with walking access only. Clint Bostwick, BPA representative, said there is a ten foot (10') tall restriction on trees under and in proximity of the power lines. He said a permit can be applied for to get a variance. At this point, attendees broke in to groups with a commissioner or staff member, and brainstormed on maps placed throughout the library. Each group shared their ideas for use of the property and where they would like to see a play structure, trails, etc. Jainga, Schroder, Mayor Burbidge and parks and Recreation Commission Chair Purdom thanked those in attendance for their input. Meeting concluded at 7:40 p.m. C-2:) DATE: TO: FROM: VIA: SUBJECT: PARKS, RECREATION AND CULTURAL SERVICES MEMORANDUM February 11, 2002 , PRHSPS Council Committee ; ����^ Jennifer Schro er, Director David Mo i anal Barclay Place meow r Association proposal for a paved trail 5.D At the Committee's December 10`', 2001 meeting, Mr. Michael Massoth, representing Barclay Place Homeowners Association presented a proposal to pave the gravel trail that connects the City's green belt in English Garden at SW 333 Street to 10`h Ave SW. Mr. Massoth stated that in October the association obtained six bids for an eight -foot wide asphalt pathway. The bids received ranged from $12,000 to $15,000. The association had hoped the costs would come in at approximately $6,000. The Committee asked staff to review the request and to report back to the Council Committee with a rec41nendation. Background On Octoher 24`h the association submitted a Neighborhood Matching Fund Minigrant Application to pave a gravel trail that connects the City's greenbelt in English Garden from SW 333 Street to 10`' Ave SW. The association attached copies of six bids and indicated that although they bid an eight -foot wide trail, they would settle for a six-foot path in order to stay within their original projected budget of $6,000. The budget of $6,000 was based on the association committing $3,000 and requesting the remaining matching funds from the City. Staff Recommendation The section of trail referenced is located in Tract "A" West Campus Division #7. The City of Federal Way owns Tract "A". This gravel pathway currently facilitates two functions. First, the pathway serves as an access to maintain the drainage corridor that runs along the length of Tract "A". Secondly, citizens enjoy the pathway as a trail connector, connecting 10'h Avenue SW to the City's greenbelt in English Gardens that in turn, connects to Alderbook Park. (Exhibit A) In order to upgrade the current gravel access/trail to asphalt, the pathway specification for the trail needs to accommodate Public Works maintenance vehicles and equipment as well as be consistent with the city's adopted standard for non -motorized paths as identified in the City's Comprehensive Plan (Exhibit B). The BPA trail is an example of the path standard. Paving the trail will increase the accessibility of the trail for all abilities. Therefore, staff supports partnering with the Barclay Place Homeowners Association to pave the referenced trail section using the Citv's standard for construction of a non -motorized path. Process/next steps If the Council Committee is in support of the Associations proposal to partner with the City to pave the trail, then staff can prepare a project description identifying necessary permits, engineering specifications, cost estimate and funding sources. The project description would be submitted as part of the City's capital improvement plan for consideration by the full Council as part of the 2003/2004 Biennium Budget. Committee Recommendation Motion to direct staff to prepare as part of the City's Capital Improvement Plan, a proposal to pave the section of trail in the City's Tract "A" West Campus Division in partnership with the Barclay Place Homeowners Association. The trail is to meet the City's design standard for a non -motorized path. The section of trail proposed, is between SW 333 Street to 10`' Ave SW. The proposal will be considered as part of the 2003/2004 Biennium Budget process for capital projects. Committee Chair Committee Member Committee Member 4;r _. .mw � � � Prnnosed T at Barclay O .0 U C cd Q, N •Z— O o I C O z -� v Planfor N Y a It N O a N st Planfor Exhibit B �3 5.E CITY OF FEDERAL WAY PARKS, RECREATION & CULTURAL SERVICES DEPARTMENT MEMORANDUM Date: January 24, 2002 To: Parks, Recreation, Human Services & Public Safety Cou yI Committee Via: David M e ity anager From: Jon Jainga, Park Planning and Development Manager Subject: Skate Park Structure at Steel Lake Park Project, RFB f35,al Approval and Approval to release retainage. Background: The Skate Park Structure at Steel Lake Park Project, AG #01-75 is completed. The general contractor Sahli Construction of Burien, Washington has completed all the bid specifications of the public works contract. The project was completed within the budgeted amount of $265,727.00. Recommendation: Recommend final approval for the Skate Park Structure at Steel Lake Park Project, RFB 00-135 and to release the project retainage for Sahli Construction of Burien, Washington and forward to the February 19, 2002 Council Meeting for final approval. APPROVAL OF COMMITTEE REPORT: Committee Chair Committee Member Committee Member I�t f2i � � .E LL � � � � $ � 0 � c O 2 5.G e > \ % � i w 2 % / � ( \ ( Q b / « • x \ \ \ \ 3 G \ \ \ \ k = # z 7z: \ \ \ 2 \ \ / a \ � \ o \ § \ / U \ \ \ o CL, # % \ \ (,--) — A— loo S.H FEDERAL WAY CITY COUNCIL PARKS, RECREATION, HUMAN SERVICES, AND PUBLIC SAFETY Date: February 11, 2002 To: Parks, Recreation, Human Services & Public Safety Council Committee From: Anne Kirkpatrick, Chief of Police At Via: David Mosel pager Subject: Informational Only; PSO Vehicle - Dodge Intrepid Information Only: As part of the 2001-2002 Mid -Biennium Adjustments, City Council approved the replacement of two (2) Ford Taurus's. The Department of Public Safety, after researching police vehicles, has opted to purchase the Dodge Intrepid mid/full size sedans for used by Police Support Officers. The Intrepid comes with the option of a Police Package that ensures the successful connection of the electrical system needed to operate the emergency lighting, radios, and mobile display computers. Additionally, the Intrepid comes with a larger backseat area. This bonus will assist with transporting prisoners by providing more leg room and allowing for an easier transition in and out of the vehicle. The Intrepid is comparably priced, available on contract from the Office of State Procurement, therefore making it a better choice for the City and Department. iAcamden/agenda/021102/Info-PSO vehicles to Dodge lnrepids.doc