AG 23-027 - BALLI ROAD, LLC C/O POWER PROPERTY CONSULTANTS, INC.RETURN TO:
EXT:
CITY OF FEDERAL WAY LAW DEPARTMENT ROUTING FORM
ORIGINATING DEPT./DIV: Police Department
2. ORIGINATING STAFF PERSON: Kyle Sumpter / Lynette Allen
EXT: 6701
3. DATE REQ. BY: ASAP
4. TYPE OF DOCUMENT (CHECK ONE):
❑ CONTRACTOR SELECTION DOCUMENT (E.G., RFB, RFP, RFQ)
❑ PUBLIC WORKS CONTRACT ❑ SMALL OR LIMITED PUBLIC WORKS CONTRACT
❑ PROFESSIONAL SERVICE AGREEMENT ❑ MAINTENANCE AGREEMENT
❑ GOODS AND SERVICE AGREEMENT ❑ HUMAN SERVICES / CDBG
❑ REAL ESTATE DOCUMENT ❑ SECURITY DOCUMENT (E.G. BOND RELATED DOCUMENTS)
❑ ORDINANCE ❑ RESOLUTION
❑ CONTRACT AMENDMENT (AG#): ❑ INTERLOCAL
N OTHER Lease Agreement
5. PROJECT NAME: Police Substation Lease
Ka
NAME OF CONTRACTOR: Balii Road, LLC C/O Power Property Consultants, Inc.
ADDRESS: 31620 23rd Ave S #218, Federal Way, WA 98003 TELEPHONE 253-214-2122
E-MAIL: FAX:
SIGNATURE NAME: John HunjTITLE
7. EXHIBITS AND ATTACHMENTS: ❑ SCOPE, WORK OR SERVICES ❑ COMPENSATION ❑ INSURANCE REQUIREMENTS/CERTIFICATE ❑ ALL
OTHER REFERENCED EXHIBITS ❑ PROOF OF AUTHORITY TO SIGN ❑ REQUIRED LICENSES A PRIOR CONTRACT/AMENDMENTS
8. TERM: COMNIENCElvIENT DATE: 1/1/2023
U
COMPLETION DATE: 12/31 /2024
TOTAL COMPENSATION $ 3700 per month (INCLUDE EXPENSES AND SALES TAX, IF ANY)
(IF CALCULATED ON HOURLY LABOR CHARGE - ATTACH SCHEDULES OF EMPLOYEES TITLES AND HOLIDAY RATES)
REIMBURSABLE EXPENSE: ❑ YES 19 NO IF YES, MAXIMUM DOLLAR AMOUNT: $
IS SALES TAX OWED ®YES IDNO IF YES, $ PAID BY: ❑ CONTRACTOR ❑ CITY
RETAINAGE: RETAINAGE AMOUNT: ❑ RETAINAGE AGREEMENT (SEE CONTRACT) OR ❑ RETAINAGE BOND PROVIDED
A PURCHASING: PLEASE CHARGE TO: 001-2100-111-521-34-452
10. DOCUMENT/CONTRACT REVIEW
❑ PROJECT MANAGER
A DIRECTOR
❑ RISK MANAGEMENT (IF APPLICABLE)
A. LAW
INITIAL / DATE REVIEWED INITIAL / DATE APPROVED
Andy J. Hwang
JRC 1219/22
11. COUNCIL APPROVAL (IF APPLICABLE) COMMITTEE APPROVAL DATE: COUNCIL APPROVAL DATE:
12. CONTRACT SIGNATURE ROUTING
❑ SENT TO VENDOR/CONTRACTOR DATE SENT: DATE REC'D:
❑ ATTACH: SIGNATURE AUTHORITY, INSURANCE CERTIFICATE, LICENSES, EXHIBITS
❑ CREATE ELECTRONIC REMINDER/NOTIFICATION FOR I MONTH PRIOR TO EXPIRATION DATE
(Include dept. support staff if necessary and feel free to set notification more than a month in advance if council approval is needed.)
INITIAL/ DATE SIGNED
W DEPARTMENT
i' IGNATORY (MAYOR OR DIRECTOR)
❑ CITY CLERK
❑ ASSIGNED AG# AG#
COMMENTS;
2/2017
LEASE AGREEMENT
BETWEEN
BALLI ROAD, LLC AND THE CITY OF FEDERAL WAY
THIS AGREEMENT ("Agreement") made on the date indicated by the signatures below,
by and between BALLI ROAD, LLC, a Washington limited liability company hereinafter referred
to as "Lessor", and the CITY OF FEDERAL WAY, a municipal corporation of the State of
Washington hereinafter referred to as "Lessee."
WHEREAS, Lessor is the owner of certain real property that includes office space
containing fixtures and equipment located at 31620 23rd Ave S, Suite 102, Federal Way,
Washington 98003 (the "Property"); and
WHEREAS, the City's Police Department has been using office space at the Property as
a downtown substation; and
WHEREAS, Lessee believes that the property will continue to be sufficient to
accommodate a downtown substation within the existing retail space within the Property; and
WHEREAS, Lessor has agreed to permit Lessee to continue to use the Property for such
police office use subject to certain conditions; and
WHEREAS, Lessee desires to continue to use the Property, subject to the terms and
conditions provided for herein.
NOW THEREFORE, for good and valuable consideration, the receipt of which are
hereby acknowledged and the terms of which are hereinafter outlined, the parties agree as follows:
1. Lessor hereby grants to Lessee a temporary, non -perpetual license (the "Lease") to
occupy and use a portion of the Property for use as a substation of the Federal Way Police
Department. Lessee's use of the Property shall be in compliance with any and all conditions of any
applicable permits, licenses and other governmental and regulatory approvals and in compliance
1
with all applicable laws, statutes, and governmental rules and regulations. This Lease will be used
by Lessee and its employees, agents, and representatives, subject to all the terms and conditions
of this Agreement.
2. Lessee shall pay Lessor rent in the amount of three thousand, seven hundred and NO/10.0
Dollars ($3,700.00) on a monthly basis commencing January 1, 2023.
3. Lessor shall be responsible for all electric utilities associated with the lighting, heating,
and/or air conditioning of the Property during the term of this Agreement.
4. Lessor hereby grants to Lessee the non-exclusive right and privilege to enter on the
Property for the purposes set out herein. Lessee's use of the Property shall be conducted in a manner
whereby it will not preclude or interfere with Lessor's use of the Property and/or any adjacent
property. In addition, Lessee agrees that the retail space will be available to Lessor with 24 hours'
notice to Lessee for the purpose of showing the space to potential renters.
5. The Property may be used by Lessee solely for the purpose described in paragraph 1
herein, during the License Term which shall be limited to the days commencing January 1, 2023
and ending on December 31, 2024.
6. Lessee agrees that it shall use the Property for only the stated purposes and no other
purpose. Lessee shall be solely responsible for undertaking the activities on the Property in a safe,
secure and careful manner without waste or damage to the Property or improvements thereon.
Lessee will not be a nuisance or menace to other tenants in the Building and shall not in any way
interfere with the quiet enjoyment of such other tenants. Additionally, Lessee shall clean up and
remove any debris created by such activities prior to the termination of the Term of this License.
Lessee hereby acknowledges and agrees that It has inspected the Property and examined all
conditions thereon relative to Lessee's use thereof, and that Lessor makes no, and expressly
N
disclaims, any warranty or representation as to the condition of Property, its safety or suitability
for Lessee's intended activities, or as to any improvements thereon, whether express, implied or
arising by operation of law, including, without limitation, any warranty of fitness for any particular
purposes.
7. Notwithstanding anything contained herein to the contrary, either party may terminate
this agreement early for any reason with thirty (30) days' notice to the other party. On early
termination of the License granted by this Agreement, as well as on the natural termination of this
License on December 31, 2024, Lessee shall quietly and peaceably surrender the Lessor's Property
in a manner that fully complies with all applicable state, federal, or local statute, regulation or
ordinance and will leave the Lessor's Property in as good condition as such Property was in at the
time of Lessee's entry on the Property under this Agreement. Furthermore, the terms of this
Agreement that would, by their nature, survive termination, including, without limitation, the terms
that govern Lessee's removal obligations and Lessee's indemnification obligations, as well as this
survival provision, will survive termination or expiration of this Agreement.
8. Lessee agrees to defend and to indemnify and hold Lessor, its parent, subsidiaries,
affiliates, and Its and their officers, directors, shareholders, agents, employees, and representatives
harmless from and against any and all losses, costs, claims, damages, and liabilities, including
reasonable attorney's fees, court costs, and fees of expert witnesses, arising from Lessee's use of
the Property as a police substation and from any of Lessee's police activities conducted on the
Property. Lessor is responsible for maintaining the Property, including common areas, in a safe
condition and Lessee's indemnification does not cover Lessor's legal duties as a landlord and
property owner.
3
9. During the Term hereof, Lessee shall have in full force and effect commercial general
liability insurance or its equivalent through self-insurance or participation in municipal insurance
pool with respect to Lessee's use of the Property and the activities and operations of Lessee on the
Property, with a limit for bodily injury, death, property damage and personal injury of not less than
One Million and NO/Dollars ($1,000,000.00) per occurrence. Two Million and NO/Dollar
($2,000,000) general aggregate. A certificate of insurance or evidence of participation in a
municipal insurance pool shall be delivered to Lessor evidencing the coverage required herein
prior to commencing any activity on the Property.
10. Lessee may not assign its rights hereunder without first obtaining Lessor's approval,
which may be granted or withheld in Lessor's sole discretion.
11. This Agreement shall constitute the entire agreement between the parties and any prior
understanding or representation of any kind preceding the date of this Agreement shall not be
binding upon either party except to the extent incorporated in this Agreement. No alteration,
modification, amendment, or waiver hereto shall be valid unless evidenced by a writing signed by
both parties hereto.
12. Lessee shall not permit the roads or any driveways, sidewalks or other rights -of -way
adjacent to the Property to be obstructed or disturbed in connection with the use of the Property.
13. All notices, demands, or requests required or permitted to be given under this
Agreement shall be hand -delivered or sent by mail, return receipt requested and addressed to the
parties as follows:
LESSOR: Balli Road, LLC
c/o Power Property Consultants, Inc.
31620 23rd Ave S #218
Federal Way, WA 98003
Attn: John Hunt
Tel: 253-214-2122
4
LESSEE: Federal Way Police Department
Attention: Deputy Chief Kyle Sumpter
33325 8th Ave S
Federal Way, WA 98003
Tel. 253-835-6712
14. The failure of either party to this Agreement to insist upon the performance of any of
the items and conditions of this Agreement, or the waiver of any breach of any of the terms and
conditions of this Agreement, shall not be construed as thereafter waiving any such terms and
conditions, but the same shall continue and remain in full force and effect as if no such forbearance
or waiver had occurred.
15. The invalidity of any portion of this Agreement will not and shall not be deemed to
affect the validity of any other provision. In the event that any provision of this Agreement is held
to be invalid, the parties agree that the remaining provisions shall be deemed to be in full force and
effect as if they had been executed by both parties subsequent to the expungement of the invalid
provision.
16. This Agreement may be executed in one (1) or more counterparts, all of which taken
together shall constitute one (1) instrument and constitutes the entire Agreement between the
parties as to the subject matter herein described.
17. Lessee has inspected the Property and accepts the space in its current state "as -is."
Lessee, at Lessee's sole cost, will be responsible for any improvements, repairs and maintenance
in the Property during their tenancy.
18. Lessee, at Lessee's sole cost, may install signage. Lessor will review and approve
signage and proposed location prior to signage installation. At the end of the tenancy, whether by
natural or early termination, Lessee, at Lessee's sole cost, will have the signage removed and the
impacted area returned to its condition prior to signage installation.
5
19. Lessee is granted a non-exclusive license to use the designated parking areas for police
vehicles. Lessor reserves the right at any time to grant similar non-exclusive use to other tenants,
to promulgate rules and regulations relating to the use of such parking areas, including reasonable
restrictions on parking by tenants and lessor. The Parties agree that two parking stalls, the selection
of which is to be mutually agreed upon by the Lessor and the Lessee, will be designated as police
use only. These stalls will be located for maximum visibility to the adjacent streets and transit
center and may have a marked patrol' car present at certain times to deter criminal activity. Any
and all costs associated with markings or signage for these designated spaces will be borne by the
Lessee.
IN WITNESS WHEREOF, Lessor and Lessee have executed this agreement as of the
date indicated below.
[signature page to follow]
LESSEE:
CITY OF FEDERAL WAY:
(a-z4e;pe
Jim cell, Nfayor
DATE:
LESSOR:
BALLI ROAD, LLC
Patrick Rhodes
STATE OF WASHINGTON )
ss.
COUNTY OF \
ATTEST:
Stephanie Courtney, CMC, City Clerk
APPROVED AS TO FORM:
6-) 0- l'a
J. Ryan Call, City Attorney
On this day personally appeared before me ?C..4r•►C,►— QAu j,.,5, tome known to be the
_M && &- ft c/ of Balli Road, LLC that executed the foregoing instrument, and
acknowledged the said instrument to be the free and voluntary act and deed of said limited liability
company, for the uses and purposes therein mentioned, and on oath stated that he/she was
authorized to execute said instrument.
GIVEN my hand and official seal this 10,.Ab�' day of an , 201�5.
r
Notary's signature
+�=l92'...�..�h.
�, Notary's printed name
Notary Public in and for the State of ashington.
s
My commission expires�D- 3 1 2,
1219/22, 7:56 AM
Corporations and Charities System
BUSINESS INFORMATION
Business Name:
BALLI ROAD, LLC
UBI Number:
601 990 206
Business Type:
WA LIMITED LIABILITY COMPANY
Business Status:
ACTIVE
Principal Office Street Address:
31620 23RD AVE S, SUITE 218, FEDERAL WAY, WA, 98003-5049, UNITED STATES
Principal Office Mailing Address:
31620 23RD AVE S, SUITE 218, FEDERAL WAY, WA, 98003-5049, UNITED STATES
Expiration Date:
11/30/2023
Jurisdiction:
UNITED STATES, WASHINGTON
Formation/ Registration Date:
11/01/1999
Period of Duration:
PERPETUAL
Inactive Date:
Nature of Business:
REAL ESTATE
REGISTERED AGENT INFORMATION
Registered Agent Name:
PATRICK W RHODES
Street Address:
31620 23RD AVE S STE 218, FEDERAL WAY, WA, 98003-0000, UNITED STATES
Mailing Address:
31620 23RD AVE S STE 218, FEDERAL WAY, WA, 98003-0000, UNITED STATES
GOVERNORS
Title
GOVERNOR
Governors Type
INDIVIDUAL
Entity Name First Name
PATRICK
Last Name
RHODES
https://ccfs.Sos,wa.gov/#/BusinessSearch/BusinessInformation ill
12/9/22, 7:57 AM Washington State Department of Revenue
Washington State Departr rierit of muvel iut
< Business Lookup
License Information:
Entity name: BALLI ROAD, LLC
Business
name:
i Entity type: Limited Liability Company
I YYP�
I
UBI #: 601-990-206
Business ID:
Location ID:
Location: None
Excise tax and reseller permit status: Click here
Secretary of State status: Click here
i�
New search Back to results
Governing People May include governing people not registered with Secretary of State
Governing people Title
RHODES, PATRICK
The Business Lookup information is updated
nightly. Search date and time: 12/9/2022 7:56:59 j
AM
I
https://secure.dor.wa.gov/gteunauth/—/#4
1/2
COUNCIL MEETING DATE: January 17, 2023 ITEM #: 8 d
CITY OF FEDERAL WAY
CITY COUNCIL
AGENDA BILL
SUBJECT: Lease agreement between Balli Road, LLC and the City of Federal Way for the Downtown Police
Substation
POLICY QUESTION: Should the City of Federal Way renew a lease agreement with Balli Road, LLC for the
Federal Way Police Department (FWPD) Downtown Substation and increase rent to $3,700 per month?
COMMITTEE: PRHSPSC MEETING DATE: January 10, 2023
CATEGORY:
N Consent ❑ Ordinance ❑ Public Hearing
❑ City Council Business ❑ Resolution ❑ Other
STAFF REPORTBY: Kyle Sumpter, Deputy Chief of Police DEPT: Police
Attachments: 1. Staff Report
2. Updated Lease Agreement
Options Considered:
1. Approve the proposed lease agreement and maintain the Downtown Substation
through December 31, 2024.
2. Do not approve proposed lease agreement and provide direction to staff.
MAYOR'S RECOMMENDATION: Option 1.
MAYOR APPROVAL: �f S �. DIRECTOR APPROVAL:=Ity/fzs
10 col nnli ee CQano I11111&l
Initial/Date Initial/Date
COMMITTEE RECOMMENDATION: I move to forward the proposed lease agreement to the January 17, 2023
consent agenda for approval.
4� JJ
r Committed`Member Committee Member
PROP SED COUNCIL MOTION: I move to approve the proposed lease agreement between Balli Road, LLC and
the it}� of Federal Way for the FWPD Downtown Substation, and authorize the Mayor to execute said
agreement.
(BELOI f' TO BE COMPLETED BY CITY CLERK'S OFFICE)
J�QLINCIL
AC'['CO
APPROV 111-1IW1,3
COUNCIL BILL #
DENIED
First reading
❑
TABLED/DEFERRED/NO ACTION
Enactment reading
❑
MOVED TO SECOND READING (ordinances only)
ORDINANCE #
REVISED - 4/2019
RESOLUTION #
CITY OF FEDERAL WAY
MEMORANDUM
DATE: January 10, 2023
TO: Parks, Recreation, Human Services and Public Safety Council Committee
VIA: Jim Ferrell, Mayor
FROM: Andy J. Hwang, Chief of Police
SUBJECT: Lease Agreement between Balli Road, LLC and the City of Federal Way for the
Downtown Police Substation
Financial Impacts:
Balli Road, LLC will charge the City $3,700 per month to continue renting the Downtown Police
Substation, beginning January 1, 2023, an increase from $3,000 per month. Utilities are
included, so there are no additional costs.
Background Information:
Since 2015 there has been an agreement between Balli Road, LLC and the City for use of office
space, identified as the Federal Way Police Department Downtown Substation. This space is
used primarily by the Traffic Section, as well as other officers for various police -related matters.
Balli Road, LLC will provide secure office space, which includes designated parking for police
vehicles. FWPD officers will use the space for administrative tasks and, when available, provide
assistance with law enforcement issues arising at or near the Transit Center.
The term of the proposed agreement is from January 1, 2023 through December 31, 2024. If the
agreement is not approved, the current agreement would expire on December 31, 2022 and
FWPD will promptly move out of the facility.