HomeMy WebLinkAboutItem 05 Land Lease for Fire Station #16 Temporary Housing
. AGENDA ITEM SUMMARY
Meeting Date:
Meeting Type:
Department:
Staff Contact:
Staff Phone No:
Estimated Time:
November 5, 2007
Regular Session
CMO ~
John Tamuloni~
x3656
Consent Calendar
SPRINGFIELD
CITY COUNCIL
ITEM TITLE:
ACTION
REQUESTED:
ISSUE
STATEMENT:
ATTACHMENTS:
DISCUSSION/
FINANCIAL
IMPACT:
LAND LEASE FOR FIRE STATION #16 TEMPORARY HOUSING
Approve City Manager signing commercial lease agreement with Jack E. Heacock
and Sarah J. Heacock Trustees of the Heacock Living Trust dated March 15, 1999
Property owners of the property immediately north of Fire Station #16 have agreed
to lease terms that would allow the temporary housing needed to accommodate Fire
and Life Safety personnel during the demolition and construction of Fire Station 16.
The proposed site is the most efficient and straightforward location for day-to-day
operations during the reconstruction of facilities and in obtaining necessary land-
use permits. Fire operations and apparatus storage would remain on existing Fire
Station property.
1. Commercial Lease Agreement with Heacock Living Trust Trustees
Costs associated with this lease were included in cost comparison materials
provided to Council earlier during discussions of the lease for the modular
temporary quarters. Leasing this 200-foot by 140-foot area (See map in Lease
Agreement) would allow a site to be prepared so the modular unit could be set up
and operate soon after delivery.
The following highlight the terms of the proposed lease:
1. Lease Term: 12 months plus two three-month extensions, if needed.
2. Base Rent $842 (based on property value and a rule-of-thumb lease formula
often used by real estate professional) plus $50 increase per each extension
3. City pays pro rata share of property taxes on leased area (estimated at less than
$500/year, City may avoid this cost by applying to Assessor as an exempt use.)
4. City pays Lessors' attorney costs in drafting and negotiating lease up to $2000.
5. On Site Improvements: City builds (and leaves when lease terminates) needed
sewer line stub connection, driveway apron to South 68th Place (if needed), and
stormwater improvements needed for temporary residential use.
6. For temporary residential use: City builds (and removes when lease terminates)
building pads, all utilities, screened fencing, parking, driveways, security
lighting, etc.
7. City removes items all built in #6 above and restores and reseeds site to level
grassy field as now.
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COMMERCIAL LEASE AGREEMENT
Date:
October
, 2007
Between:
Jack E. Heacock and Sarah J. Heacock,
Trustees of the Heacock Living
Trust dated March 15 , 1999 ("Landlord").
And
City.of Springfield, Oregon
(j'Tenant" )
Landlord leases to Tenant and Tenant leases from Landlord the
following described property (the "Premises") on the terms and
conditions stated below:
The Premises is approximately 200 West to East feet by 140 feet
north to south, about 28,000 square feet in area, and is
unimproved land in the northwest corner of Tax Lot 17-02-35-33-
06201. The Premises is approximately the crosshatched area on
Exhibit A attached hereto.
Section 1. Occupancy
1.1 Original Term.
commence October
2009.
The original term of this lease shall
, 2007, and continue through March 30,
1.2 Possession. Tenant's right to possession and obligations
under the lease shall commence on October , 2007.
1.3 Renewal Option. If the lease is not then in default,
Tenant shall have the option to renew this lease for two
successive terms of three months, as follows:
(a) The renewal term shall commence on the day following the
date of termination of the expiring term.
(b) The options must be exercised by written notice to
Landlord not lesi than sixty (60) days prior to the last day of
the original term for the first renewal and thirty (30) days
prior to the last day of the first renewal term for the s~cond
renewal. The giving of such notice shall be sufficient to make
the lease binding for the renewal term without further act of
the parties who shall then be bound to take the steps required
in connection with the determination of rent as specified below.
COMMERCIAL LEASEA~~EMENT - 1 -
A TT ACf. IMENT 1
(c) The Base Rent rate of the iease f6r each renewal term
shall be Fifty Dollars ($50) per month more than the base rent
for the Rriorterm. All other terms and conditions of the
original term shall apply.
Section 2. Rent
2.1 Base Rent. During the original term, Tenant shall pay to
Landlord as base rent of $842 per month. The first month's rent
shall be payable upon signing this lease. If the effective date
is not the first month of a calendar month, the tent shall be
prorated on a per diem basis for the partial calendar month.
Each subsequent month's rent shall be payable on the 1st day' of
each month in advance at Landlord's address listed below or at
such other place as may be designated by Landlord.
. .
2.2 Base Rent for Renewal Term. In the event that Tenant
exercises the renewal options, then the base rent for the
renewal term shall be as specified in Section 1.3(c).
2.3 Security Deposit. To secure Tenant's compliance with all
terms of this lease, Tenant has paid Landlord the sum of $2,000
as a deposit. The deposit shall be a debt from Tenant to
Landlord. The unused portion of the .deposit shall be refunded
to Tenant without interest within. THIRTY (30) days following
expiration of the lease term or other termination not caused by
Tenant's default. Landlord shall have the right to offset
against the deposit any sums owing from Tenant to Landlord and
not paid when due, any damages caused by Tenant's default, the
cost of curing any default by Tenant should Landlord elect to do
so, and the cost of performing any repair or cleanup that is
Tenant's responsibility under this lease. Offset against the
deposit shall not be an e~clusiveremedy in any of the above
cases, but may be invoked by Landlord without prior notice to
Tenant, at its option, in addition to any other remedy provid~d
by law or this lease for Tenant's nonperformance. If Landlord
gives notice to Tenant that an offset is claimed against the
deposit, and, unless the lease is terminated, Tenant shall
within TEN (10) days following such notice deposit with Landlord
a sum equal to the amount of the offset so that the total
deposit amount, net of offset, shall remain constant throughout
the lease term.'
Section 3. Use of the Premises
3.1 Permitted Use. The Premises "is currently vacant. Tenant
owns and operates a fire station on Tax Lot 6204 adjacent to the
Premises. Tenant intends to reconstruct the fire station and
COMMERCIAL LEASE AGREEMENT - 2 -
ATTACf.lMENT 1
wants to use the Premises on an interim basis to house firemen
and a place to park emergency vehicles. Tenant shall be
permitted to install modular housing on the Premises for its
firemen, concrete bases or pads for the building as necessary,
utility lines and telecommunications facilities to serve such
facilities, perimeter security fencing and asphalt parking lot,
a curb cut for access from the Premises to S. 6SthPlace which
shall be the access point to the Premises for Tenant's use and
other related temporary improvements necessary but incidental to
the operations of the fire fighting activities. currently on the
fire station site adjacent to the leased Premises. Landlord
will co-sign any necessary land use, other applications, permits
and other documents deemed necessary and reasonable by. Tenant so
Tenant may secure approval of the Permitted Uses listed above.
Such actions by tenant shall be at Tenant's sole expense. All of
such construction shall be subject to the following additional
terms:
(a) The sewer line provided by Tenant from S. 6Sth Place shall
be a permanent sewer line at least eight (S) inches in diameter
for use in future development of the Premises and the adjacent
property owned by. Landlord. Upon vacating the Premises, Tenant
will cap the sewer line and leave a stubbed-out extension on the
Premises and transfer the ownership of the sewer line and any
other utility lines connecting to the Premises to Landlord.
(b) Tenant shall install a City-approved driveway apron or
other paved entry access to the Premises from S. 6Sth Place.
Tenant shall take all access to the Premises either from the
adjacent fire station property owned by Tenant or S. 6Sth Place.
The driveway access shall be in accordance with all municipal
requirements ahd shall be constructed ona permanent basis for
future use by Landlord after the lease terminates,
(c) Tenant shall construct a security fence around the
perimeter of the Premises and provide slats for the fencing
facing the Landlord's adjacent residence. The fencing shall
include a gate for access to S. 6Sth Place as well as a gate
larg~ enough to accommodate vehicles along the east boundary of
the Premises at a location mutually agre~d.. upon between Landlord
and Tenant. ~iA-LD" tj'dt e- C~ &'l.i2t ~~ :ft#
(d) All safety and security lighting installed by Tenant
shall be directed downward and shielded in a manner to minimize
light intrusion on the Landlord's residence and adjacent
property.
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(e) Landlord's adjacent property to the south of the Premises
slopes downward from south to north. As a result, surface
stormwater will flow from Landlord's adjacent property onto the
Premises. Tenant shall construct storm drainage facilities on
the Premises as is reasonably necessary for Tenant's use of the
Premises. Any storm drainag~ system shall be channeled into the
storm sewer line on the fire station property to the north of
the Premises.
(f) Upon termination or expiration of. the lease,unless
otherwise agreed by Landlord in writing, Tenant agrees to remove
all pads, buildings, appurtenances and other structures.and
items constructed by Tenant on the Premises (expect for the
sewer line and driveway apron described in Sections 3.1(a) and
(b)), and all debris and other personal property and to restore
the Premises to a level field, plant grass and ensure the
condition of the Premises is suff~ciently ~th that ,it can be 6-f~
.~~~~~~~,,~~;r..~~"~~
3.2 Restrictfonson Use. In conn~~n with the use of the .
Premises, Tenant shall:
(1) Conform to all applicable laws and regulations of
any public authority affecting the Premises and the use, and
correct at Tenant's own expense any failure of compliance
created through Tenant's fault or by reason of Tenant's use.
(2) Refrain from any activity that would make it
impossible to insure the Premises against casualty or would
increase the insurance rating of the Premises.
(3) Refrain from any use that would be reasonably
offensive to tenants or owners or users (including Landlord) of
neighborirtg property or that would tend to create a nuisance or
damage the reputation of the Premises.
(4) Tenant shall not cause or permit any Hazardous
Substance to be spilled, leaked, disposed of,or otherwise
released on or. under the Premises. Tenant may use or otherwise'
handle on the Premises only those Hazardous Substances typically
used or sold in the prudent and safe operation of the fire
station specified in Section 3.1. Tenant may store such
Hazardous Substances on the Premises only in quantities
necessary to satisfy Tenant's reasonably anticipated needs.
Tenant shall comply with all Environmental Laws and exercise the
highest degree of care in the use, handling, and storage of
Hazardous Substances and shall take all practicable measures to
minimize the quantity and toxicity of Hazardous Substances used,
COMMERCIAL LEASE AGREEMENT - 4 -
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A TT ACf. IMENT 1
haridled, or stored ori the Premi~es. Upon thee~piration or
termination of this lease, Tenant shall remove all Hazardous
Substances from the Premises. The term Environmental Law shall
mean any federal, state, or local statute, regulation, or
. ordinance or any judicial or other governmental order pertaining
to the protection of health, safety or the environment.
(5) If Tenant breaches the obligations .stated herein, or
if the presence of Hazardous Substance on the Premises cau~ed
or permitted by Tenant at any time after execution of this
Agreement, results in any contamination of the Premises or any
other private or public property, including, without limitation,
sewers or streets, or if contamination of the Premises by
Hazardous Substance otherwise occurs for which Tenant is legally
liable to Landlord or to any third party for damages resulting
therefrom, then:
(A) Tenant .shall indemnify, defend and hold Landlord
harmless from and against any and all claims, judgments,
damages, penalties, fines, costs, expenses, liabilities and
losses (including, without limitation, diminution in value of
the Piemises, damages for the loss or restriction on use of
the. Premises, and sums paid in'settlement of claims,
attorneys' fees, consultant fees and expert fees) that arise
during or after the term of this lease, as a result of or in
connection with such contamination. The foregoing
indemnification of Landlord by Tenant includes, without
limitation, costs incurred in connection with any investigation
of site conditions or any clean-up, remedial removal or
restoration work required or recommended by any federal, state
or local governmental agency or political subdivision because
of Hazardous Substance present in th~ soil or groundwater on or
under the Premises or any public facilities.
(B) Tenant shall promptly take any and all actions, at
its sole cost and expense, as are necessary or appropriate to
return the Premises or other private or public facilities to
the. condition existing prior to the introduction of any
Hazardous Substance to the Premises; provided that Landlord's
approval of such actions shall first be obtained, which
approval shall not be unreasonably withheld if such actions
would not potentially have any material adverse effect on the
Premises or other private or public facilities. All
contractors, laboratories and engineering firms (hereinafter
"Consultants") chosen by Tenant to undertake a~y remedial
action that may be necessary or appropriate on 'or about the
Premises or other private or public facilities :shall be
approved by Landlord prior to their employment by Tenant, which
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A TT ACf. IMENT 1
approval will not be unreasonably withhold. Consultants shall
be licensed and bonded in accordance with all applicable laws.
Duplicate copies of all reports and findings made by
Consultants with regard to the condition of the Premises or
other private or public facilities shall be delivered to
Landlord concurrently with their delivery to Tenant. Tenant
shall haveth~ work done by the Consultants at Tenant's sole
cost and shall indemnify and hold Landlord and Landlord's
agents and employees harmless from and against any and all
loss, costs, liability, damage and expense relating to or
arising from any damage or injury to Tenant, the Consultants,
or the agents of either of them, for any third-party liability
incurred by any of them, an for any claim by Landlord, or
Landlord's agents or employees by reason of any such work
conducted by Consultants.
. (6) As. used herein, the term. "Hazardous Substance" means
any hazardous or toxic substance, material or waste that is or
becomes regulated by any local governmental authority, the
State of Oregon, or the United States Government. The term
"Hazard,ous Substance" includes, without limitation, any
material or substance which is designated as a hazardous
substance purs~ant to the Water Pollution Control Act (33 USC
Section 1317); or defined as hazardous waste pursuant to the
Resource Conservation and Recovery Act (42 USC Section 6901 et
seq.) ;or defined as a hazardous substance pursuant to the
Comprehensive Environmental Response, Compensation and
Liability Act of 1980, as amended (42 USC Section 9601 et
seq.); or defined as a hazardous material pursuant to Article
90 of the Uniform Fire Code, as adopted by the City or County
in which the subject property is located and, as amended from
time to time.
Section 4. Repairs and Maintenance
4.1 Tenant's Obligations. Tenant shall be responsible for
the maintenance and repair of all improvements on the Premises.
4.2 Reimbursement for Repairs Assumed. If Tenant fails or
refuses to make repairs that are required by.thisSection,
Landlord may make the repairs and charge the actual costs of
repairs to Tenant. Such expenditures by Landlord shall be
reimbursed by Tenant on demand together with interest at the
rate of 12% per annum from the date of expenditure by Landlord.
Except in an emergency creating an immediate risk of personal
injury or property damage, Landlord may not perform repairs
which are the obligation of Tenant and charge Tenant for the
resulting expense unless at least 10 business days before work
. COMMERCIAL LEASE AGREEMENT - 6 -
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ATTACf.IMENT 1
is commenced, Tenant is given notice in writing outlining with
reasonable particularity the repairs required, and Tenant fails
within that time to initiate such repairs in good faith.
4.3 Inspection of Premises. Landlord shall have the right to
inspect the Premises at any reasonable time or times to
determine the necessity of repair.
Section 5. Alterations
5.1 Alterations Prohibited. Except as provided in Section
3.1, Tenant shall make no improvements or alterations'on the
Premi~es of any kind without first obtaining Landlord's written
consent, which consent shall not be unreasonably withheld. All
alterations shall be made in a good and workmanlike manner, and
in compliance with applicable laws and building codes.
5.2 Ownership and Removal of Alterations. Except as provided
in .Section 3.1, all improvements and alterations performed on
the Premises by Tenant shall be the property of Landlord when
installed.
Section 6. Fire Insurance
6.1 Fire Insurance. Tenant shall keep the Premises and the
improvements thereon insured on a standard all risks of loss
insurance policy including, at Landlord's option, earthquake
and flood coverage. Tenant may carry, and shall bear the
expense of, any similar insurance insuring the personal
property of Tenant and Tenant improvements on the Premises.
Tenant shall purchase a waiver of subrogation endorsement on
all such pdlicieswaiving the insurer's subrogation rights
against Landlord.
6.2 Waiver of Subrogation. Neither the La~dlord nor the
Tenant shall be liable to the other for loss arising out of
damage to or destruction of the Premises or the ~ontents
thereof, to the extent such loss is covered by insurance. All
such claims for any and all loss, however caused, hereby are
waived to the extent covered by insurance. Such absence of
liability shall exist whether or not the damage or destruction
is caused by the negligence of either Landlord or Tenant or by
any of their respective agents, servants, officials, or
employees. It .is the intention and agreement of the Landlord
and the Tenant that the insurance carriers involved shalln6t
be entitled to subrogation under any circumstances against any
party to this lease. Neither the Landlord nor the Tenant shall
have any interest or claim in the other's insurance policy or
COMMERCIAL LEASE AGREEMENT - 7 ~
A TT ACI: IMENT 1
pol~cies; or the proceeds thereof, unless specifically covered
therein as a joint insured.
Section 7. Taxes; Utilities
7.1 Property Taxes. Tenant shall pay all real property taxes
and any special assessments levied against the improvements
.constructed on the Premises by Tenant and a percentage of the
taxes and ~ny special assessments levied 'against the land in
Tax Lot 6201 of which the Premises are a part, equal to the
percentage of the tax lot leased to Tenant hereunder, computed
on a square footage basis. Property taxes on the land shall be
prorated on a per diem basis for any partial tax year this
lease is in effect.
7.2 Special Assessments. If an assessment for a public
improvement is made against the Premises, Landlord may elect to
cause such assessment to be paid in installments, in which case
all of the installments payable with respect to the lease term
shall be treated the same as general real property taxes for
purposes of Section 7.1.
7.3 Contest of Taxes. Tenant shall be permitted to contest
the amount of any tax or assessment as long as such contest is
conducted in a manner that does not cause any risk that
. Landlord's interest in the Premises will be foreclosed for
nonpayment. Since the Premises is part of a larger tax lot,
Landlord may also contest the taxes on that tax lot.
7.4. Payment of Utilities Charges. Tenant shall pay when due
all charges for services and utilities incurred in connection
with the use, occupancy, operation, and maintenance of the
Premises~ including (but not limited to) hookup or connections
fees, charges for fuel, water, gas, electricity, sewage
disposal, power, refrigeration, air conditioning, telephone,
and janitorial services.
Section 8. Damage and Destruction
8.1 Damage. If the Premises are damaged by fire or casualty,
Tenant shall have the option to repair the damage at Tenant's
expense or to terminate the lease on TEN (10) days prior
written notice to Landlord. If Tenant elects to repair the
damage, repairs shall be accomplished with all reasonable
dispatch subject to interruptions and delays from labor
disputes and matters beyond the control of Tenant.
COMMERCIAL LEASE AGREEMENT - 8-
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8.2 Rent Abatement. Rent shall not be abated during the
.repair of any damage.
Section 9. Eminent Domain
9.1 Partial Taking. If a portion of the Premises is
condemned and Section 9.2 does not apply, Tenant shall have the
option to continue the lease and make any alterations Or
repairs Tenant deems necessary for its use of the Premises, or
terminate the lease on 10 days prior written n6tice to
Landlord.
(1) Landlord shall be entitled to all of the proceeds of
condemnatio~, and Tenant shall hav~ no claim against Landlord
as a result of the condemnation.
(2) If Tenant elects to continue the lease, Tenant shall
proceed as soon as reasonably possible to make such repairs and
alterations to the Premi~es as a~e necessary to restore the
remaining Premises to a condition as comparable as reasonably
practicable to that existing at the time of the condemnation.
(3) Rent shall not be abated if Tenant does not elect .to
terminate the lease.
9.2 Total Taking. If a condemning authority takes all of the
Premises or a portion sufficient to render the remaining
Premises reasonably unsuitable for the use that Tenant was then
making of the Premises, the lease shall terminate as of the
date the title. vests in the condemning authorities. Landlord
shall be entitled to all of the proceeds of condemnation, and
Tenant shall have no claim against Landlord as a result of the
condemnation.
Section 10. Liability and Indemnity
10, 1. Liens . Tenant shall pay as due all claims. for work done
on and for services rendered or material furnished to the
Premises, and shall keep the Premises free from any liens. If
Tenant fails to pay any such claims or to discharge any lien,
.Landlord may do so and collect the cost as additional rent.
Any amount so added shall bear interest at the rate of 12% per
annum from the date expended by Landlord and shall be payable
on dem~nd. Such action by Landlord shall not constitute a
waiver of any right or remedy which Landlord may have on
account of Tenant's default.
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10.2 Indemnification. To the extent allowed by the Oregon
Constitution and the Oregon Revised Statutes including
specifically but not limited to the Oregon Tort Claims Act (ORS
30.260 through 30.295), Tenant .shall defend, indemnify and hold
harmless Landlord from any claim, loss, or liability arising
out of or related to any activity of Tenant on the Premises or
any condition of the Premises in the possession or under the
"control of Tenant. Landlord shall have no liability to Tenant
for any injury, loss, or damagecabsed by third parties, or by "
any condition of the Premises except t6 the extent caused by
Landlord's gross negligence or breach of duty under this lease.
10.3 Liability Insurance. Before taking possession of the
Premises, Tenant shall procure and thereafter during the term
of the lease shall continue to carry the following insurance at
Tenant's cost: Commercial General Liability Insurance
(occurrence version) in a responsible company, with limits of
not less than $1,000,000 per occurrence and $2,000,000 in the
aggregate. Such insurance sha~l cover all risks arising
directly or indirectly out of Tenant's activities on or"any
condition of the Premises, and shall name Landlord as an
additional insured. Tenant shall provide Landlord proof of
insurance on Landlord's request.
Section 11. Assignment and Subletting
11.1 No Assignment. No part of the Premises may be assigned,
mortgaged, or subleased, nor may a right of use of any portion
of the property be conferred on any third person by any other
means, without the prior written consent of Landlord. This
provision shall apply to all transfers by operation of law. No
consent in one instance shall prevent the provision from
applying toa subsequent instance. Landlord shall consent to a
transaction covered by this provision when withholding such
consent would be unreasonable in the circumstances.
Section 12. Default
The following shall be events of default:
12.1 Default in Rent. Failure of Tenant to pay any rent or
other charge within 10 days after it is due.
12.2 Default in Other Covenants. Failure of Tenant to comply
with any termor condition or fulfill any obligation of the'
lease (other than the payment of rent or other charges) within
20 days after written notice by Landlord specifying the nature
of the default with reasonable particularity. If the default
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is of such a nature~hat it cannot be completely remedied
within the 20-day period, this provision shall be complied with
if Tenant begins correction of the default within the 20-day
period and thereafter proceeds with reasonable diligence and in
good faith to effect the remedy as soon as practicable.
Section 13. . Remedies on Default
13.1 Termination. Irt the event of a default by Tenant, the
lease may be terminated at the option of Landlord by written
notice to Tenant. Whether or not the lease is terminated by
the election of Landlord or otherwise, Landlord shall be
entitled to recover damages from Tenant for the default" and
Landlord may reenter, take possession of the .Premises, and
remove any persons or property by legal action or by self-help
with the use of reasonable force and without liability for
damages and without having accepted a surrender.
13.2 . Reletting. Following reentry or abandonment, Landlord
may relet the Premises and in that connection may make any
suitable alterations or refurbish the Premises, or both, or
change the character or use of the Premises, but Landlord shall
not be required to relet for any use or purpose other than that
specified in the lease or which Landlord may reasonably
consider injurious to the Premises, or to an~ tenant that
Landlord may reasonably consider objectionable. Landlord may
relet all or part of the Premises, alone or in conjunction with
other properties, for a term longer or shorter than the term of
this lease, upon any reasonable terms and conditions, including
the granting of some rent-free occupancy or other rent
concession.
13.3 Damages. In the event of termination or retaking of
possession following default, Landlord shall be entitled to
recover immediately, without waiting until the due date of any
future rent or until the date fixed for expiration of the lease
term, the following amounts as damages:
(1)
new tenant
have been,
The los$ of rental from the date of default until a
is, or with the exercise of reasonable efforts could
secured and paying out.
(2) The reasonable costs of reentry and reletting
including without limitation the cost of any cleanup,
refurbisHing, removal of Tenant's property and fixtures, costs
incurred under Section 13.5, or any other expense occasioned by
Tenant',s default including but not limited to, any remodeling
COMME~CIAL LEASE AGREEMENT - 11 -
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or repair costs, attorney fees,court6osts, brOker
commissions, and advertising costs.
. (3) Any' excess of the value of the rent ~rid all of
Tenant's other obligations under'this lease over the reasonable
expected return from the Premises for the period commencing on
the earlier of the date to which Tenant has paid rent or.the
date the Premises are relet, and continuing through the end of
the term. The present value of future amounts will be computed
using a discount .rate equal to the prime loan rate of major
Oregon banks in effect on the date of default;
13.4 Right to Sue More than Once. Landlord may sue
periodically to recover damages during the period corresponding
to the remainder of the lease term, and no action for damages
shall bar a later action for ~amages subsequently accruing~
13.5 Landlord's Right to Cure Defaults. Except as otherwise
provided herein, if Tenant fails .to perform' any obligation
. under this lease, Landlord shall have th~ option to do. so after
30 days' written notice to Tenant. All of Landlord's
expenditures to correct the default shall be reimbursed by
Tenant on demand with interest at the rate of twelve percent
(12%) per annum from the date of expenditure by Landlord. Such
action by Landlord shall not waive any other remedies available
to Landlord because of the default.
13.6 Remedies Cumulative. The foregoing remedies shall be in
addition to and shall not exclude any other remedy available to
Landlord ~nder applicable law.
Section 14. Holdover
14.1 Property Removal. Except as provided in Section 3.1,
prior to expiration or other termination of the lease term
Tenant shall remove all furnishings, furniture, trade fixtures
and other improvements to the Premises. If Tenant fails to do
so, this shall be an abandonment of the property, and Landlord
may retain the property and all rights of Tenant with respect
to it shall cease or, by notice in writing given to Tenant
within 20 days after removal was required, Landlord may elect
to hold Tenant to its obligation of removal. If Landlord
elects to require Tenant to remove, Landlord may effect a
. removal and place the property in public storage for Tenant's
account: Tenant shall be liable to Landlord for the cost of
removal, transportation to storage, and storage, with interest
at the rate of 12% per annum on all such expenses from the date
of Bxpenditure by Landlord.
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14.2 Holdover. If Tenant does not vacate the Premises at the
time required~ Landlord shall have the option to treat Tenant,
as a tenant from month to month, subject to all of the
provisions of this lease except the provisions for term and
r~newal, or to eject Tenant from the Premises and recover
damages caused by wrongful holdover. Failure of Tenant to
remove fixtures, furniture, furnishings, 'trade fixtures or
other improvements that Tenant is required to remove under this
lease shall constitute a failure to vacate to which this
section shall apply if the property not removed will
substantially interfere with occupancy of the Premises by
another tenant or with occupancy by Landlord for any purpose
including preparation for a new tenant.
Section 15. Miscellaneous
15.1 Nonwaiver. Waiver by either party of strict performance
of any provision of this lease shall not be a waiver of or
prejudice the party's right to require strict performance of
th~ same provision in the future or of any other provision.
15.2
Attorney Fees.
(1) If suit or action is instituted in connection
with any controversy arising out of this lease, the prevailing
party shall be entitled to recover in addition to costs such
sum as the court or arbitrator may adjudge reasonable as
attorney fees at arbitration, at trial, and on any appeals.
(2) Tenant shall reimburse Landlord within 30 days
following signing this lease for Tenant's legal fees incurred
in drafting and negotiating this lease in an. amount not to
exceed $2,000.
15.3 Notices. Any notice required or peTmi tted under this
lease shall be given when actually delivered or 48 hours after
deposited in United States mail as certified mail addressed as
follows:
To Landlord:
Jack E. Heacock and Sarah J. Heacock,
Trustees
6893 Main Street
Springfieldi OR 97478
To Tenant:
City of Springfield
225 Fifth Street
Springfield, OR 97477
. i
COMMERCIAL LEASE AGREEMENT"- 13 -
A TT ACf. [MENT 1
or to such other address as maybe specified from time to time
by either,of the parti~s in writ~ng.
15.4 Su6cession. Subject to the above-stated limitations on
transfei of Tenant's interest, this lease shall be binding on
and inure to the benefit of the parties and their respective
successors and assigns. .
15.5 Recordation. This lease, or any memorandum thereof,
shall not be recorded without the prior express written consent
of Landlord.
15.6 Entry for Inspection. Landlord shall have the right to
enter upon the Premises at any time to determine Tenant's
compliance with this lease, oi to show the Premises to any
prospective tenant or purchaser, and in addition shall have the
right, at any time during the last two months of the term of
this lease, to place and maintain upon the Premises notices for
leasing or selling of the Premises.
15.7 Interest on Rent/Late Payment and Other Charges. Any
rent or other payment required of Tenant by this lease shall,
if 'not paid within 10 days after it is due, bear interest at
the rate of 12% per annum from the due date until paid. In
addition, if Tenant fails to make any rent or other payment
required by this lease to be paid to Landlord within t~n days
after it is due, Landlord may elect to impose a late charge of
Fifty Dollars ($50) to reimburse Landlord for the costs of
collecting the bverdue payment. Tenant shall pay the late
charge upon demand by Landlord. Landlord may levy and collect
a late charge in addition to all other remedies available for
Tenant'spefault, and collection of a late charge shall not
waive the breach caused by the late payment.
15.8 Time of Essence. Time is of the essence of the
performance of each of Tenant's obligations under this lease.
15.9 Oregon Law. This agreement is subject to, and shall be
interpreted in accordance with, the laws of the ~tate of
Oregon.
15.10 Representations. Landlord makes no representations or
warranties as to the condition of the Premises or any
improvements thereon ~nd Tenant is leasing the Premises "AS IS"
and with all defects, if any. Tenant certifies that this lease
is executed on the basis of Tenant's own examination and
knowledge of the Premises and Tenant's opinion of its value.
COMMERCIAl. _:LEASE, ~GREEMENT - 14-
A TT ACf.IMENT 1
."
No representations as to the condition or repair of the
Premises or the zohing or land use classification of the
Premises, or permitted uses of the Premises, have been made by
Landlord, or by an agent of Landlord, and no agreement or
promise to alter, repair or improve the Premises has been made
by Landlord or by any agent of Landlord. Tenant accepts the
Premises in its existing condition, including suitability of
the Premises for the use contemplated by Tenant. All
conditions precedent to this lease of the Premises have been
satisfied or waived by the party in whose favor the condition
was established.
IN WITNESS WHEREOF, the parties have executed this Commercial
Lease Agreement to be effective the date first set forth above.
Landlord:
",.jJ~g~
Sarah J. Heock .... ..
Trustee of the Heacock
Living Trust
Trustee of the Heacock
. Living Trust
Tenant:
City of Springfield
By:
RElnri'iED ~l ,f\PPROVHl
AS TO FOF:;M
~~~~-j--~ \... ~ ",
DATE: _lQll~ I ~\
OFFICE OF CITY t\TTQRNI;Y
COMMER~IJU. LEl\.$E AGREEMEN'r - 15 ,...
A TT ACf. IMENT 1
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EXHIBIT A
ATTACHMENT 1 - 16
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