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HomeMy WebLinkAboutAgreements/Contracts - RenewGRANT COUNTY COMMISSIONERS AGENDA MEETING REQUEST FORM (Must be submitted to the Clerk of the Board by 12:00pm on Thursday) REQUESTING DEPARTMENT: Renew REQUEST SUBMITTED BY: Linze Greenwalt CONTACT PERSON ATTENDING ROUNDTABLE: Dell Anderson CONFIDENTIAL INFORMATION: ❑YES ®NO onre 12.12.24 PHONE: X5470 ❑Agreement / Contract ❑AP Vouchers ❑Appointment / Reappointment ❑ARPA Related ❑ Bids / RFPs / Quotes Award ❑ Bid Opening Scheduled ❑ Boards / Committees ❑ Budget ❑ Computer Related ❑ County Code ❑ Emergency Purchase ❑ Employee Rel. []Facilities Related ❑ Financial ❑ Funds ❑ Hearin 9 ❑ Invoices / Purchase Orders ❑ Grants — Fed/State/County ❑ Leases ❑ MOA / MOU ❑ Minutes ❑ Ordinances ❑Out of State Travel ❑ Petty Cash ❑ Policies ❑ Proclamations ❑ Request for Purchase ❑ Resolution El Recommendation ❑Professional Serv/Consultant ❑Support Letter ❑Sur lus Re . p q ❑Tax Levies ❑Thank You's ❑Tax Title Property ❑WSLCB Commercial Lease between Sandoval Rentals LL C and Grant County dba Renew for property at 114 Camelia St N E, Suite 4 Royal City.Effective01.01.25 01-01.28. If necessary, was this document reviewed by accounting? ❑ YES ❑ NO • ❑ N/A If necessary, was this document reviewed by legal? C1 YES ❑ NO ❑ N/A DATE OF ACTION: DEFERRED OR CONTINUED TO: APPROVE: DENIED D1: D2: � ~� D3: ABSTAIN 4/23/24 WITHDRAWN: kr..aa Ei V E D 7 r D E"M C 2024 COMMERCIAL LEASE Reference No. for related documents: Lessor: 1) SANDOVAL RENTALS LLC, a Washington limited liability company Lessee: 1) Grant County DBA RENEW Abbreviated Legal Description: Address: 114 Camelia St NE, Suite 4, Royal City, WA 99357 Complete legal description on Page 17 of this document. Exhibit "A" Assessor's Tax Parcel ID No: 71616000 COMMERCIAL LEASE AGREEMENT THIS LEASE AGREEMENT (this "Lease") is made and entered into October 8 2024, by and between SANDOVAL RENTALS LLC, a Washington limited liability y company, hereinafter referred to as "Lessor", and Grant County DBA RENEW hereinafter referred to as "Lessee." Lessor hereby agrees to lease to Lessee and Lessee hereby agrees to lease from Lessor, the Premises, as defined below, pursuant to all the terms and conditions set forth below. RECITALS A. The Lessor owns real property located in Royal City, Grant County, Y, Washington which consists of p abbreviated legal description: Address: 114 Camelia St NE, Suite 4, Royal City, WA 99357 Commonly known as: Royal City and parcel number 71616000. The full legal description is attached to this document and incorporated by reference as Exhibit A. Said will be referred to as the "Property." property COMMERCIAL LEASE PG 1 B. Lessor desires to lease and Lessee desires to take possession of a portion of said Property owned by Lessor. ARTICLE 1 - DEFINED TERMS, GENERAL CONDITIONS AND PREMISES Section 1.1 DEFINED TERMS AND COVENANTS. The terms listed below ("Defined Terms") shall have the following meanings throughout this Lease and g , the covenants described in this Section 1.1 shall have the same effect as the terms and conditions of the Lease: (a) Lessor: SANDOVAL RENTALS LLC, a Washington limited liability company (b) Lessee: Grant County DBA RENEW (c) Premises: The designated space specifically referred to as the building which the Lessee conducts business in which is comprised of a portion of one 1 building, on the property more particularly described in Exhibit "A" which is also attached hereto (the "Property"). Unless otherwise notified b Lessee within thirty Y Y (30) days of taking possession, by entry hereunder Lessee accepts the Premise s es as being in the condition in which Lessee is obligated to deliver the Premises. Lessee shall at the end of the term and any extension herein surrender to Lessor the Premises and all alterations, additions and improvements thereto in the same condition as when received; ordinary wear and tear, damage b fire, earthquake, g Y q , or act of God excepted. Lessor has no liability and has made no representation to alter, improve, repair, or paint the Premises or any part thereof. (d) Rentable Area of the Premises: 114 Camelia St NE, Suite 4 Royal City, WA 99357. Y y, (e) Term: Three (3) years following the Lease Commencement Date. The Lease will terminate on the last day full calendar month following the Commencement date. (f) Lease Commencement Date: 01/01/2025 (however, Lessee shall have early access to the Premises, at no charge. (g) Base Rental: Base rent will be $1,500 per month; this is a Triple Net Lease. See Articles 3 and 4. Water and sewer are an additional $55.00 per month (h) Deposit: $1500.00. See Article 5. (i) Use: Any other lawful use allowed in Washington. See Article 6. COMMERCIAL LEASE PG 2 0) Parking Privileges: Lessee is authorized to use the area. This is an non- exclusive right. Lessor also uses the same area for parking equipment and a ui ment storage. (k) Normal Hours: Monday through Sunday, from 7:30 a.m. to 8:00 p.m., excepting state and/or federal holidays. (1) Lessee Improvements: Lessor will make no improvements. Lessee is allowe d to make any improvements necessary for the use of the building. Written permission is required from Lessor, but said permission will not be unreasonably Y (m) Broker: Lessor and Lessee each hereby represent and warrant to the othe r that it has not engaged or dealt with any real estate brokers, salesperson, finders persons p � e s or other p ns entitled to any compensation relating to this Lease. (n) Notices: All notices, requests, consents, approvals, payments in connection . pY n with this Lease, or communications that either party desires or is required or permitted to give or make to the other party under this Lease, shall only be deemed to have been given, made and delivered, when made or given in writing g and personally served, or deposited in the United States mail, certified or registered mail, return receipt requested, postage prepaid to the respective addresses of Lessee or Lessor as set forth below. Lessor or Lessee may from time to time designate other addresses for notice purposes by written notice to the other in accordance herewith. Lessee's Address for Notices: 840 E Plum St, Moses Lake, WA 98837 Lessee's Address for Billing Purposes: 840 E Plum St, Moses Lake WA 98837 Lessor's Address for Notices: 14005 Dodson Rd S, Royal City, WA 99357 Y Y, Copy to: Toni Meacham, Attorney at Law, 1420 Scootene Rd Connell WA 9326. 9 Y ' Lessor's Address For Payment of Rent: 14005 Dodson Rd S, Royal City, WA 99357 Y Y� (o) Recitals: The recitals stated above are incorporated by this reference as though the same were set forth in full. Said recitals are incorporated as part of the Lease agreement between the parties and are binding on same. COMMERCIAL LEASE PG 3 (p) Parties: The parties herein are Lessor and Lessee and Lessor has no ownership in Lessee's enterprise. The parties are not partners, nor joint venturers, nor owners of any kind. (q) Waiver: Any waiver by Lessor of any breach of any part of the Lease agreement shall not be deemed to be nor considered a waiver of the rights and remedies granted in said Lease agreement nor a waiver of any rights or remedies under law. (r) Hold Over: At the expiration of the Lease agreement, Lessee shall not ho ld over or continue in possession of the property. Such action, hold over, shall not be construed as a renewal nor extension of this Lease. Said holdover may only be construed to create a month -to -month tenancy which may be terminated b the Lessor at any time. Y y (s) Lessor Liability: The Lessor in this Lease shall not be liable to Lessee no r any other person for any damage arising from any acts or negligence of third parties or thep es public, nor for any damages that might arise by acts of God labor disputes, or any causes beyond the control of the Lessor. Section 1.2 GENERAL CONDITIONS. (a) Unless this Lease provides for a contrary standard, whenever in this Le ase the consent or approval of the Lessor or Lessee is required, such consent q or ap proval shall not be unreasonably withheld or delayed (except, however, with respect to any Lessor consent, for matters which could possibly have an adverse effect on theY Building's plumbing, heating, mechanical, life safety, ventilation air conditioningor � Y ' electrical systems, which could affect the structural integrity of the g Y Building, or which could affect the exterior appearance of the Building,Lessor or may withhold such consent or approval in its sole discretion but shall act in good faith); and (b) Unless a contrary standard or right is set forth in this Lease whenever the Lessor or Lessee is granted a right to take action, exercise discretion or ma . ke an allocation, Judgment or other determination, Lessor or Lessee shall act reasonably and in good faith and take no action which might result in the frustration of the reasonable expectations of a sophisticated Lessee and a sophisticated Lessor concerning the benefits to be enjoyed under this Lease. Section 1.3 LEASE OF PREMISES. Lessor leases to Lessee and Lessee leases from Lessor, 114 Camelia St NE , Suite 4, Royal a City, portion of the described Y p i bed Premises, in their current condition and to pay all rentals as stated in said Lease at the times and in the manner required in the Lease agreement. COMMERCIAL LEASE PG 4 ARTICLE 2 - TERM Section 2.1 EFFECTIVE DATE. This Lease will become effective on January1 f 2025 Section 2.2 COMMENCEMENT DATE. The Term of this Lease and the Rent shall commence on the date that is shown in Section 1.1 f of this Lease Agreement ("Commencement Date"). In the event the Commencement Date should occur on a date other than that indicated in Section 1.1 f , then Lessor shall send Lessee notice of the occurrence of the Commencement Date which notice Lessee shall acknowledge by executing a copy of the notice and returning it to Lessor. If Lessee fails to sign and return the notice to Lessor within ten 10 days of receipt of the notice from Lessor, the notice as sent by Lessor shall be deemed to have correctly set forth the Commencement Date. Failure of Lessor to send such notice shall have no effect on the Commencement Date. Section 2.3 DELAY IN DELIVERY OF PREMISES. If Lessor is unable to deliver possession of the Premises to Lessee on or before the Commencement Date Lessor shall not be subject to any liability for its failure to do so. This failure shall not affect the validity of this Lease or the obligations of Lessee under it but the Lease Term shall commence on the date on which Lessor delivers possession of the Premises to Lessee. The Lease Expiration Date shall be extended for a like period plus any additional period required to make the Lease Expiration Date the last day of the calendar month. Lessor shall use its commercially reasonable efforts to enforce its rights to possession of the Premises against an holdover L g Y Lessee. If Lessor is unable to deliver possession of the Premises to Lessee b March 1 2022 then eitherY party shall have the right to terminate this Lease by providing the other party with written notice thereof within five (5) business days following said Outside Date. Section 2.4 TOTAL TERM AND RENEWAL. If Lessee wishes to renew the term of the lease at the end of the three (3) year term, notice shall be given to Lessor to begin lease negotiations. If Lessee does not notify Lessor, Lessor will begin advertising the space for rent and has every right to do so. ARTICLE 3 - RENT Section 3.1 PAYMENT OF BASE RENTAL. Lessee shall a the Base Rental in . pay , advance, without prior notice, demand or billing statement, on or before the first day of each calendar month during the entire Term. Concurrently with Lessee's COMMERCIAL LEASE PG 5 execution of this Lease and the submission thereof for Lessor's execution, Lessee shall pay Lessor the Base Rental payable hereunder for one full calendar month of the Term as set forth in Section 1.1(g). On the Commencement Date, Lessee shall pay to Lessor the prorated Base Rental attributable to the month in which the Commencement Date occurs if the Commencement Date occurs on a date other than the first day of a calendar month. Rent shall not include electricity, taxes, nor insurance which shall be the responsibility of the Lessee. This is a triple net lease. Said base rental amount shall increase b(6)Y six percent every three years so that the lease is valid. Section 3.2 GOVERNMENTAL ASSESSMENTS. In addition to the Base Rental Lessee shall pay, prior to delinquency, all personal property taxes, charges, � g ' rates duties and license fees assessed against or levied upon Lessee's occupancy of the Premises, or upon any Lessee Improvements, trade fixtures, furnishings, equipment or other personal property contained in the Premises (collectively, "Personal Property"). Lessee shall cause such assessments upon Personal Property to be billed separately from the property of Lessor. Lessee hereby agrees to indemnify, defend and hold Lessor harmless from and against the payment of all such assessments. Lessee shall also pay electricity, taxes and insurance under the triple net system. Section 3.3 SPECIAL CHARGES FOR SPECIAL SERVICES. Lessee agrees to pay to Lessor, within ten (10) days following written demand, all charges for any services, goods and/or materials, which shall include Lessor's 15% administrative cost surcharge thereon, furnished by Lessor at Lessee's request which are not otherwise required to be furnished by Lessor under this Lease without separate char p charge or reimbursement. Lessee understands that they are responsible for any damage made to the septic due to patient or employee negligence. Section 3.4 DEFINITION OF RENT. All payments of Base Rental all (including increases thereof) and any and all taxes, fees, charges, expenses, insurance obligations, late charges, interest, and all other payments, disbursements or reimbursements (collectively, "Rent") which are attributable to, payable by or the responsibility of Lessee under this Lease, constitute "rent" within the meaning of applicable law. Any Rent payable to Lessor by Lessee for any fractional month shall be prorated based on a three hundred sixty-five (365) day year. All payments owed by Lessee under this Lease shall be paid to Lessor in lawful money of the United States of America at the Lessor's Address for Payment of Y Rent set forth in Section 1.1(n) or such other address as Lessor notifies Lessee in writing from time to time. All payments shall be paid without deduction, setoff, or counterclaim. Section 3.5 LATE CHARGE. Lessee acknowledges that the late payment of Rent . pY will cause Lessor to incur damage, including administrative costs, loss of use of COMMERCIAL LEASE PG 6 the overdue funds and other costs, the exact amount of which would be impractical and extremely difficult to ascertain. Lessor and Lessee agree that if Lessor does not is a payment of Rent within five (5) daysafter the date that a such payment s due, Lessee shall pay to Lessor a late charge equal to ten percent (10%) of the delinquent amount, as liquidated damages for the damages which Lessor is likely to incur for the thirty (30) day period followingthe due date of such ch payment. Further, all portions of Rent not paid within thirty s (30) days following its due date and all late charges associated therewith shall bear interest at the Interest Rate (as defined below) beginning on the thirty-first (31st) day following the due date of such Rent and continuing until such Rent, late charges and interest are paid in full. Acceptance of the late charge, and/or interest by Lessor shall not cure or waive Lessee's default, nor prevent Lessor from exercising, before or after such acceptance, any and all of the rights and remedies for a default provided by this Lease or at law or in equity. Payment of the late charge and/or interest is not an alternative means of performance of Lessee's obligation to pay Rent at the times specified in this Lease. Lessee will be liable for the late charge regardless of whether Lessee's failure to a the Rent pay when due constitutes a default under this Lease. The term "Interest Rate" shall mean the maximum interest rate permitted by law or twelve(12)ercent. p , whichever is greater. Section 3.6 ACCELERATION OF BASE RENTAL PAYMENTS. In the event a late charge becomes payable pursuant to Section 3.5 of this Lease for three (3) payments of any one or more elements of Rent within a twelve (12) month period, then all subsequent Rent payments shall immediately and automatically become payable by Lessee quarterly, in advance, instead of monthly. After one Y (1) year of quarterly rent payments being made n a timely manner, the monthly rent payment date shall be reinstated. Section 3.7 DISPUTES AS TO PAYMENTS OF RENT. Lessee p agrees to pay the g Rent required under this Lease within the time limits set forth in this Lease. If Lessee receives from Lessor an invoice or statement, which invoice or statement is sent by Lessor in good faith, and Lessee in good faith disputes whether all or ip any part of such Rent s due and owing, Lessee shall nevertheless pay to Lessor the amount of the Rent indicated on the invoice or statement until Lessee receives a final judgment from Grant County Superior Court (or when arbitration is permitted or required, receives a final award from an arbitrator) relieving or mitigating Lessees obligation to pay such Rent. In such instances where Lessee disputes its obligations to pay all or part of the Rent indicated on such invoice or statement, Lessee shall, concurrently with the payment of such Rent, provide Lessor with a letter or notice entitled "Payment Under Protest," specifying in detail why Lessee is not required to pay all or part of such Rent. Lessee will be deemed to have waived its right to contest any past payment of Rent unless it has filed a lawsuit against Lessor in Grant County Court (or when arbitration is COMMERCIAL LEASE PG 7 permitted or required, filed for arbitration and has served Lessor with notice of such filing), and has served a summons on Lessor, within one (1)ear of such Y payment. Until an Event of Default by Lessee occurs, Lessor shall continue to provide the services and utilities required by this Lease. ARTICLE 4 - SECURITY DEPOSIT Section 4.1 SECURITY DEPOSIT. Lessor agrees that the Lessee's security deposit of $1500.00 previously paid for Property under the Commercial Lease entered by the Parties previously on October 17, 2022, shall be applied in full to satisfy the security deposit required for this new lease of Property. Lessee Y agrees that Lessor may, without waiving any of Lessor 7s other rights and remedies under this Lease upon the occurrence of any of the Defaults described in Section 17.2 hereof, apply the Security Deposit; (a): to remedyfailure b any Y Lessee to repair or maintain the Premises or to perform any other terms covenants or conditions contained herein, or (b) to compensate Lessor for damages incurred, or to reimburse Lessor as provided herein, in connection with any such Default. If Lessee performs all of Lessee's obligations hereunder during the Term, Lessor will, within thirty (30) days after the expiration or earlier termination of the Lease, return the Security Deposit, or so much as has not been applied by Lessor, to Lessee's or the last permitted assignee of Lessee's interest hereunder at the expiration of the Term. ARTICLE 5 - USE Section 5.1 RESTRICTION ON USE. Lessee shall not do or permit to be done in or about the Property, nor bring, keep or permit to be brought or kept therein anything which is prohibited by Washington state law or by any standard form fire insurance policy or which will in any way increase the existing rate of, or affect . g , any fire or other insurance upon the Building or its contents, or which will cause a weight load or stress on the floor or any other portion of the Premises in excess of the weight load or stress which the floor or other portion of the Premises is designed to bear. Lessee, at Lessee's sole cost, shall comply with all laws of the State of Washington, and all Grant County Code affecting the Premises and with the requirements of any Board of Fire Underwriters or other similar body now or hereafter instituted, and shall also comply with any order, directive or certificate of occupancy issued pursuant to any Laws, which affect the condition, use or occupancy of the Premises, including, but not limited to, any requirements of structural changes related to or affected by Lessee's acts, occupancyor use of the P Premises. The judgment of an Grant County Court or the admission of Lessee in any action against Lessee, whether or not Lessor is a art to such party action, shall be conclusive as between Lessor and Lessee in establishing such violation. Lessee shall not conduct uses other than which are permissible b p Y i Lessor of its other Lessees n the Building. Section 5.2 COMPLIANCE BY OTHER LESSEES. Lessor shall not be liable to Lessee for any other occupant's or Lessee's failure to conduct itself in accordance with the provisions of this Article 6, and Lessee shall not be released or excused from the performance of any of its obligations under this Lease in the event of any such failure. Section 5.3 ASSIGNMENT AND SUBLETTING. Lessee shall not assign this g lease without prior written consent from the lessor, which shall not be unreasonably withheld. Lessee shall be allowed to sublet any portion of the premises Lessee desires to sublet. Notice of said subletting shall be given to Lessor prior to subletting. Subletting will not increase the rental rate. Any such assignment or subletting without consent shall be void and, at the option of the Lessor, may terminate this lease. Assignment nor subletting will release the Lessee in any way from the terms of this Lease agreement. Said Lease agreement will continue to be binding without the express written release of the lessor. ARTICLE 6 - ALTERATIONS AND ADDITIONS Section 6.1 ADDITIONS OR IMPROVEMENTS TO THE PREMISES. Lessee shall not have the right to make any alterations, additions or improvements to the Premises without the Lessor's express prior written consent. In the event Lessee requests Lessor's consent to make Alterations, such consent shall be, without exception, and at a minimum conditioned on Lessor's standard rules and regulations regarding Alterations. Section 6.2 FIXTURES. All Lessee Improvements upon the Premises and any replacements therefor, including all air-conditioning or heating systems, paneling, g, decorations, partitions and railings affixed to the realty, except furniture or movable trade fixtures installed at the expense of Lessee, shall become the property of the Lessor and shall remain upon, and be surrendered with, the Premises as a part thereof at the termination of this Lease, without compensation to L p Lessee; unless, Lessor, by notice given to Lessee prior to the end of the Term, shall elect to have Lessee remove any or all such Lessee Improvements. Thereupon Lessee shall accomplish such removal at its sole cost, repair any Y damage caused by such removal, and restore the Premises to their former condition. ARTICLE 7 - REPAIRS AND REENTRY SUITE ##4. Section 7.1 REPAIRS. Lessee will, at Lessee's own cost and expense, maintain and keep the Premises and any alterations and additions thereto in sound condition and good repair, and shall pay for the repair of any damage or u inJ'rY done to the Building or any part thereof by Lessee or Lessee's agents, g employees and invitees; provided, however, that Lessee shall make no repairs to the Pr p Premises without the prior written consent of Lessor. The performance by Lessee of its obligation to maintain and make repairs shall be conducted only by contractors approved by Lessor after plans and specifications have been approved by Lessor. Lessee will not commit or allow any waste or damage to be committed on any portion of the Premises, and upon the termination of this COMMERCIAL LEASE PG 9 Lease by lapse of time or otherwise, Lessee shall deliver up the Premises to Lessor in as good condition as at date of possession, ordinarywear and tear excepted. Upon such termination of this Lease, Lessor shall have the right to reenter and resume possession of the Premises. Notwithstanding the foregoing g g provisions of this Paragraph 8, any repairs to the Premises or the Building that are necessitated because of any damage caused by fire or other casualty shall be governed by the provisions below. Lessee shall also be responsible for maintenance to the exterior, structural and common areas of the building. g Section 7.2 INDEMNIFIATION. Lessor shall not be liable for any damage a or injury to Lessee, or any other person, or to any property, occurring on the demised premises or any part thereof, and Lessee agrees to hold Lessor harmless from any claim for damages, no matter how caused, inclusive of Lessee's failure to maintain and repair the property and premises. Section 7.3 DESTRUCTION OF PREMISES. In the event of a partial destruction of the premises during the term hereof, from any cause, Lessor shall forthwith repair the same, after receiving insurance proceeds for said repair, provided that such repairs can be made within sixty (60) days under existing governmental laws and regulations, but such partial destruction shall not terminate this lease except that Lessee shall be entitled to a proportionate reduction of rent while such repairs are being made, based upon the extent to which makingthe airs Cann repairs of be made within sixty (60) days, Lessor, at his option, may make the same within a reasonable time, this lease continuing in effect with the rent proportionately abated as aforesaid, and in the event that Lessor shall not elect to make such repairs which cannot be made within sixty (60) days, this lease may be terminated at the option of either party. In the event that the building in which the demised premises may be situated is destroyed to an extent of not less than one-third of the replacement cost, Lessor may elect to terminate this lease whether the demised premises be injured or not. A total destruction of the building in which the premises may be situated shall terminate this lease. Section 7.4 LIENS. Lessee will not permit any lien of any kind to be placed on the Premises or Property for which said Lessee is leasing from Lessor. Liens for improvements or repairs placed on the property must be remedied within thirty (30) days or will be considered a default under this Lease agreement. Section 7.5 WEATHER. Lessee shall keep the Premises, i free of all snow, ice rubbish, debris, and obstructions. This includes all walkways. Said weather may Y cause damage to the Premises or may lead to damage to persons or ro ertY Lessee agrees to accept and hold Lessor p p COMMERCIAL LEASE PG 10 harmless against any injury or damage, whether to Lessor, Lessor's , or a thirdproperty, party over which Lessor has no control. ARTICLE 8 - ENTRY FOR REPAIRS AND INSPECTION. Lessor and its agents and representatives shall have the right to enter into and upon any and all parts of the Premises at all reasonable hours (or, in any emergency, at any hour) to inspect same or clean or make repairs or alterations or additions as Lessor may deem necessary, and Lessee shall not be entitled to any abatement or reduction of rent by reason thereof. During the period of one hundred (180) days prior to the expiration date of this Lease, Lessor and Lessor's agents may exhibit the Premises to prospective Lessees at reasonable hours and upon prior notice to Lessee. ARTICLE 9 — INSURANCE. Section 9.1 FIRE DAMAGE. Lessor shall maintain fire and extended coverage g insurance on the Building and the Leased Premises in such amounts as Lessor shall deem appropriate. Lessee shall be responsible, at its expense, for fire and extended coverage insurance on all of its personal property, including removable trade fixtures, located in the Leased Premises. Lessor shall be an additional insured under said policy and Lessee will maintain that the policy is for no less than $750,000.00 for the Leased Premises. The contents and other of property Lessee shall be in additional amounts. Section 9.2 POLICIES. Lessee shall, at its own expense, maintain a policy or policies of comprehensive general liability insurance with respect to the respective activities in the Building with the premiums thereon fully paid on or before due date, issued by and binding upon some insurance company approved by Lessor, such insurance to afford minimum protection of not less than $1,000,000 combined single limit coverage of bodily injury, property damage a or combination thereof. Lessor shall be listed as an additional insured on Lessee's policy or policies of comprehensive general liability insurance, and Lessee shall provide Lessor with current Certificates of Insurance evidencing Lessee's compliance with this Paragraph. Lessee shall obtain the agreement of Lessee's insurers to notify Lessor that a policy is due to expire at least (10) days prior to such expiration. Lessor shall not be required to maintain insurance for the Leased Premises nor the Building. Lessee agrees to pay Lessor for all of the insurance premiums paid by Lessor for the insurance policies identified above in the event that Lessee fails to show proof of insurance to Lessor OR fails to provide a new policy at least 48 hours prior to the expiration of the previous policy. Lessee shall pay the insurance premiums paid by Lessor within ten 10 days of receiving the statement or receipt from Lessor for said payment of the premium. COMMERCIAL LEASE PG 11 Lessee agrees and shall hold Lessor harmless against, any and all claims or damages arising out of negligence of the Lessee, its officers, agents, invitees, employees, as well as those arising due to Lessee's failure to comply with the Lease agreement, and Lessee shall, at Lessee's expense, defend Lessor against any and all suits, actions, or demands arising out of said actions or negligence, actual or alleged, and all further appeals or judgments which may be awarded. Section 9.3 WAIVER AND SUBROGATION OF RIGHTS. Neither party shall be liable to the other for the loss arising out of damages to, or destruction of, the leased Premises, building, or improvements, when such loss is caused by any of the perils which are not nor could be included in an extended policy claim, such as an "Act of God." Both parties agree to release any interest or claim in the others policy or proceeds, unless specifically covered as a joint insured, or should be listed as a joint insured. Both parties shall give notice to its respective insurance carriers. ARTICLE 10 — UTILITIES. Lessee shall pay all charges for water, sewer, gas, electricity, telephone and other services and utilities used by Lessee on the Premises during the term of this Lease unless otherwise expressly agreed in writing by Lessor. In the event that any utility or service provided to the Leased Premises is not separately metered, Lessor shall pay the amount due and separately invoice Lessee for Lessee's pro rata share of the charges. Lessee shall pay such amounts within fifteen (15) days of invoice. Lessee acknowledges that the Leased Premises are designed to provide standard electrical facilities and standard lighting. Lessee shall not use any equipment or devices that utilizes excessive electrical energy or which may, in Lessor's reasonable opinion, overload the wiring or interfere with electrical services to other Lessees. ARTICLE 11 — QUIET POSSESSION. Lessor covenants and warrants that upon performance by Lessee of its obligations hereunder, Lessor will keep and maintain Lessee in exclusive, quiet, peaceable and undisturbed and uninterrupted possession of the Leased Premises during the term of this Lease. ARTICLE 12 — CONDEMNATION. If any legally, constituted authority condemns the Building or such part thereof which shall make the Leased Premises unsuitable for leasing, this Lease shall cease when the public authority takes possession, and Lessor and Lessee shall account for rental as of that date. Such termination shall be without prejudice to the rights of either party to recover compensation from the condemning authority for any loss or damage caused by the condemnation. Neither party shall have any rights in or to any award made to the other by the condemning authority. ARTICLE 13 — SUBORDINATION. Lessee accepts this Lease subject and subordinate to any mortgage, deed of trust or other lien presently existing or COMMERCIAL LEASE PG 12 hereafter arising upon the Leased Premises, or upon the Building and to any renewals, refinancing and extensions thereof, but Lessee agrees that any such mortgagee shall have the right at any time to subordinate such mortgage, deed of trust or other lien to this Lease on such terms and subject to such conditions as such mortgagee may deem appropriate in its discretion. Lessor is hereby irrevocably vested with full power and authority to subordinate this Lease to any mortgage, deed of trust or other lien now existing or hereafter placed upon the Leased Premises of the Building, and Lessee agrees upon demand to execute such further instruments subordinating this Lease or attorning to the holder of any such liens as Lessor may request. In the event that Lessee should fail to execute any instrument of subordination herein require d to be executed by Lessee promptly as requested, Lessee hereby irrevocably constitutes Lessor as its attorney -in -fact to execute such instrument in Lessee's name, place and stead, it being agreed that such power is one coupled with an interest. Lessee agrees that it will from time to time upon request by Lessor execute and deliver to such persons as Lessor shall request a statement in recordable form certifying h' Y g tha t this Lease is unmodified and in full force and effect (or if there have been modifications, that the same is in full force and effect as so modified), stating the dates to which rent and other charges payable under this Lease have been paid, stating that Lessor is not in default hereunder (or if Lessee alleges a default stating the nature of such alleged default) and further stating such other matters as Lessor shall reasonably require. ARTICLE 14 — MEMORANDUM OF LEASE. The parties hereto contemplate that this Lease shall not be filed of record with the Adams County Auditor's office, however, the form of the lease has been drafted in such a way to allow for filing should the need arise. ARTICLE 15 — SUCCESSORS. The provisions of this Lease shall extend to and be binding upon Lessor and Lessee and their respective legal representatives, successors and assigns. ARTICLE 16 — FINAL AGREEMENT. This Agreement terminates and supersedes all prior understandings or agreements on the subject matter hereof. This Agreement may be modified only by a further writing that is duly executed by both parties. ARTICLE 17 — GOVERNING LAW. Section 17.1 ARBITRATION. All matters pertaining to this agreement (including its interpretation, application, validity, performance and breach) in whatever jurisdiction action may be brought, shall be governed by, construed and enforced in accordance with the laws of the State of Washington, County of Grant. The COMMERCIAL LEASE PG 13 parties herein waive trial by jury and agree to submit any controversy or claim arising out of or relating to this lease agreement, or the breach thereof, shall be settled by arbitration administered by the American Arbitration Association under its Commercial Arbitration Rules, and judgment on the award rendered by the arbitrator(s) may be entered in Grant County Washington. In the event that litigation and/or arbitration results from or arises out of this Agreement or the performance thereof, the parties agree to reimburse the prevailingart 's p Y reasonable attorney's fees, court costs, and all other expenses, whether or not taxable by the court as costs, in addition to any other relief to which the prevailing . p g party may be entitled. In such event, no action shall be entertained by said court or any court of competent jurisdiction if filed more than one year subsequent to the date the cause(s) of action actually accrued regardless of whether damages were otherwise as of said time calculable. Section 17.2 DEFAULT. If Lessee defaults: (a) in the payment of rent, b or an additional rent, (c) or defaults in the performance of any of the other covenants or conditions hereof, or (d) or declares bankruptcy or insolvency, e or abandons the property for more than fifteen (15) days, (f) or a receiver or assignment of property occurs with the Lessee, (g) or at the expiration of the Lease, Lessee fails to surrender possession, Lessor may give Lessee notice of such default and if Lessee does not cure any such default within seven (7) days, after the giving of Y g g such notice (or if such other default is of such nature that it cannot be completely p Y cured within such period, if Lessee does not commence such curing within such i seven (7) days and thereafter proceed with reasonable diligence and n good faith to cure such default), then Lessor may terminate this lease on not less than thirty (30) days' notice to Lessee. On the date specified in such notice the term of this lease shall terminate, and Lessee shall then quit and surrender the premises to Lessor, but Lessee shall remain liable as hereinafter provided. If this lease shall have been terminated by Lessor, Lessor may at any time thereafter resume possession of the premises by any lawful means and remove Lessee or other occupants and their effects. No failure to enforce any term shall be deemed a waiver. In the event of a default on the contract all legal action will be brought in Adams County, Washington. Default under this Lease and the necessity of termination of the Lease and repossession of the Premises does not waive nor forfeit Lessor's rights and remedies under Washington state law. Lessor retains all actions, rights, remedies, rent or damage, and the right to possession as allowed under the Lease and law. In the event that Lessor does take possession, Lessor is allowed to relet or lease the Premises in whole or in part to any lessee able, willing, and deemed appropriate by Lessor to take possession of the Premises and under the terms and conditions that Lessor may obtain. Lessor shall apply said subsequent rents received from the new lessee first to off -set costs of repossession and remedies and second to rent in arrears as well as future rents owned under the Lease. COMMERCIAL LEASE PG 14 Lessee shall remain liable for any deficiency payments not obtained, as well as other expenses, costs, and attorney's fees which are allowed to be recovered under this lease. ARTICLE 18- SIGNAGE. Lessee shall obtain Lessor's written permission for any additional signage. Lessee already has in place signage that is acceptable to Lessor. Said signage may not change without written permission from Lessor. IN WITNESS WHEREOF, the parties have executed this Lease as of the day and year first above written. [Lessor] ,Manager SANDOVAL RENTALS LLC [Lessee] [Lessee] Cindy Carter, Chair Danny E. Stone, Vice -Chair a _ ob Jones, Member , and both, jointly and severally, personally guarantee all conditions and requirements q under this Lease agreement. This guaranty s binding upon all successors, heirs assigns, and said guarantee will not be released nor discharged until all conditions and/or requirements under the Lease have been met in full and the Lease is terminated in good standing. COMMERCIAL LEASE PG 15 COMMERCIAL LEASE PG 16 Linze Green -wall- - - - ----- ... From: Rebekah M. Kaylor Sent.- Tuesday, December 10, 2024 4:07 PM To: Linze Greenwalt Subject: RE: Grant County dba Renew - Lease Renewal Thank you! I am good with this as Long as you are OK with the terms. Regards, Rebekah Kaylor Chief Deputy Prosecuting Attorney (Civil/Appellate) Grant County Prosecuting Attorney's Office PO Box 37 Ephrata, WA 98823 Phone: 509.754.2011 x3950 Fax: 509.754.6574 rmkaY1or@Rrantcountvwa.eov The contents of this e-matil message, including any attachments, are intended solely for the use of the person of entity to whom the e-mail was addressed, it contains information that may be protected by attorney -client privilege, work -product, or other privileges. and may be restricted from disclosure by applicable state and federal law. If you are not the intended recipient of this message, be advised that any dissemination, distribution., or use of the contents of this message is strictly prohibited. If you received this message in error, please contact the sender by reply e-mail. Please also permanently delete all copies of the original e-mail and any attached documentabon, Please be advised that any reply to this e-mail may be considered a public record and be subject to disclosure upon request, From: Linze Greenwalt <Igreenwalt@grantcountywa.gov> Sent: Tuesday, December 10, 2024 3:45 PM To: Rebekah M. Kaylor <rmkaylor@grantcountywa.gov> Subject: RE: Grant County dba Renew - Lease Renewal Sorry! Thanks, Lime From: Rebekah M. Kaylor <rmkaylor2grantcountywa.gov> Sent.* Tuesday., December 10,, 2024 3:38 PM To: Linze Greenwalt <Igreenwalt@grantcountywa.gov> Subject: RE: Grant County dba Renew - Lease Renewal Hi! It looks like it was removed from one section but not 7.5. Regards, 1