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HomeMy WebLinkAboutPermit Miscellaneous 1989-4-1 "'-:- . . LEASE AGREDIE!\'T This lease agreement made and entered into this 1st day of April 1989 by and between DOnald N. Hong, hereinafter referred to as Lessor and Dennis Wingharn, hereinafter referred to as Lessee. WI'mESSETli For good and valuable consideration Lessee does herewith agree to rent . fran Lessor that improved parcel of real estate known as 1565 SOuth "A" Street in the City of Springfield, County of Lane, State of oregon, and more particularly described as follows: . Beginning at a point on the SOutherly right of way line of that portion of the McKenzie ~ighway known as .south A By- Pass" that is South of a point on the North line of the Isaac Briggs DOnation Land Claim No. 83, Township 17 sou,th, Range 3 West of the Willamette Meridian, ani 2640.82 feet East of the Northwest corner of said DOnation Land Claim, ani running thence North 89 degrees 59' East along the SOutherly right of way of said highway 100.0 feet, thence southerly 140.0 feet along the West line of the tract conveyed by deed recorded June 8, 1962, Reel 196, Reception No. 72423, Official Records of Lane County, Oregon, thence South 89 degrees 59' west 100.0 feet, thence North 0 degrees 23' 30. East 140.0 feet. to the Point of Beginning, all in Lane County, Oregon. The following material terms, obligation, covenants and consideration shall apply: 1. The terms of this Agreement shall be for twenty four (24) months beginning on the first day of April 1989 and expiring on the thirty first day of March 1991. 2. Lessee has the option to renew lease for a period of three (3) a:lditional years. 3. Lessor to be notified by written notice of Lessee's intent. sixty (60) days prior to expiration of lease. 4. The base lease rent for the property, which is the subject hereof, shall be five hundred twelve dollars ($512.00) per month payable as follows: One thousand twelve dollars ($1,012.00) first and last month due on April 1, 1989. Five hundred twelve dollars ($512.00) due on the first day of each succeeding month for a pedod of twenty two (22) months. 5. Lessee shall have a first right of refusal to purchase subject property for the period of this lease, providing lease remains in effect ani all rents are paid. -1- ~-<- -e- ---.-------- ~ .:': 6. Additional consideration for this lease shall consist of the fol1owi~: A. At all material times during the course and term of this-Lease Agreement, Lessee shall at its own cost and expense procure a general liability policy of insurance covering loss, damage or injury to persons or property in, on, or about the subject premises arising from the operation, use, or occupancy of the subject premises. Said policy of insurance shall be issued in the usual form c~...~..ly utilized in the nature of an owners, landlords, and tenants policy. The insurance shall be for an amount of not less than $100,000.00 for personal injury or property damage and shall have endorsed to said policy an extension of coverage naming Lessor as additional insured. A certificate or a true and complete copy of the insurance policy shall be furnished to Lessor as evidence of said insurance coverage. There may be no cancellation for any reason whatsoever without prior consent first had fran Lessor; unless the insurance canceled is immediately and contemporaneously replaced by a policy in catilliance with the provisions of this Lease Agreement. Failure to strictly observe the provisions herein contained, with respect to the requirement of furniShing insurance shall constitute a material breach of this Lease Agreement, giving rise to the default provisions herein contemplated. B. At all material times during the course and term of this Lease Agreement, Lessee shall at its own cost and expense procure a policy of fire insurance coverage loss or damage to any fixtures and equipnent contained within the subject premises. The insurance shall be for an amount of not less than $ 35,000.00. c. Lessee acknowledges that they have examined the subject premises and thoroughly know and understand the physical condition of them. Lessee acknowledges and agrees that any permanent additions that they may rrake to the building shall be care the property of the Lessor upon termination of this Lease Agreement excepting improvements in the nature of trade fixtures. D. Lessee shall, at its own expense, keep and maintain air conditioning and heating equipnent, exterior entry and exit doors, plate glass, and glazi~ in or on the premises, and all electrical and plumbi~ fixtures located on the interior of the premises. Further, it shall be the Lessee's responsibility to keep the parking lot and adjacent walkways free and clear of snow, ice, rubbish or trash including the roof of the building . . . 8. If a condemning authority takes all of the leased premises or a portion sufficient to render the rertl3ining premises reasonably unsuitable for the use which Lessee was making of the premises, the lease shall tenninate as of the date the title vests in the condemning authority and any prepaid rent shall be refunded to the Lessee. Condemnation proceeds belong solely to Lessor. Sale of all or part of the leased premises to a purchaser with the power of eminent domain in the face of a threat or probability of the exercise of the power shall be treated for the purposes of paragraph "7" as a taking by condemnation. 9. Except with respect to activities for which Lessor is responsible, Lessee shall pay When due all claims for work done on and for services rendered or material furnished to the leased premises and shall keep the premises free from any liens. If Lessee fails to pay any such claim or claims or to discharge any such lien, Lessor may do so a:1d collect the cost as additional rent. Any arrount so added shall bear interest at the rate of 10% per annum fran the date expended by Lessor and shall be payable on demand. Such action by Lessor shall not constitute a waiver of any right or remedies which Lessor may have on account of Lessee's default. Lessee may wi thhold payment of any claim in connection with a good faith dispute over the obligation to pay, so long as Lessor's property interests are not jeopardized. If a lien is filed as a result of nonpayment Lessee shall, within ten (10) days after knowledge of the filing, secure the discharge of the lien or deposit with Lessor cash or a sufficient corporate surety bond or other surety satisfactory to Lessor in an amount sufficient to discharge the lien plus any costs, attorney fees and other charges that could accrue as a result of foreclosure or sale under the lien. 10. In the event of a default, this lease may be tenninated at the option of Lessor. Except as to the payment of roonthly rents hereinabove called for, as.a condition to the declaration of such default, Lessor shall give Lessee written notice for a period of not less than ten (10) days of the nature of the default charged against Lessee and Lessee shall have such ten (10) day period within which to correct and remedy any such default. If the property is abandoned by Lessee in connection with the default, termination shall be automatic, without notice. If the lease is not terminated by election of Lessor or otherwise, Lessor shall be enti tIed to recover damages from Lessee for the default. Lessor reserves the right to withhold tennination of the lease and to periodically make demand upon and collect from Lessee for accrued rent called for within this Lease agreement. If legal action is instituted to collect then accrued rents, prior to expiration of the lease tenn, such action shall not in any manner act to abate, preclude or prevent further and additional actions for rents accruing from and after the aforesaid initial legal proceeding. -4- "" . . If the lease is tenninated for any reason, Lessee's -liability to Lessor for damages shall survive the termination. In addition: (al Lessee shall vacate the property immediately, removing any property of Lessee, including any fixtures which Lessee is required to rel1Pve at the end of the lease term, and deliver all keys to the Lessor: (b) Lessor may re-enter, take possession of the premises and remove any persons or property by legal action or by self-help, provided such self-help does not result in a breach of the peace. Fo11owin:; re-entry or abandonment, Lessor may relet the premises and in that connection may: (1) Make any suitable alcerations or refurbish the premises or both, or change the character or use of the premises: (b) Relet all or part of the premises, alone or in conjunction with other property for a tenn longer or shorter than the term of this lease and upon any reasonable terms and conditions, including the granting of sane rent-free occupancy or other rent concession. 11. In the event of termination on default, Lessor shall be entitled to recover the following amounts as damages: Any excess of A. Lessor's actual cost in performing the work specified in Paragraphs "(A)" and "(B)". B. The reasonable costs of re-entry and reletting including without lUnitation the cost of any clean up, refurbishing, removal of Lessee's property and fixtures, or arrj other expense occasioned by Lessee's failure to quit the premises upon termination and to leave them in the required condition, attorney fees, court costs, broker canmissions and advertising cost. C. Lessor will make every reasonable effort to mitigate damages during the remaining term of the lease. Any rents collected fran subsequent property users shall be accounted for by Lessor to Lessee and shall either be reUnbursed, if Lessee's obligations have been paid in full, or shall apply as a credit against Lessee's Obligations as hereinabove defined. Lessor agrees to give Lessee every reasonable opportunity to procure another property user in order to mitigate said damages, and shall consent and agree to the subsequent use of the premises under reasonable circumstances. 'n1e foregoing remedies shall be in addition to and shall not exclude any other remedy available to Lessor under applicable law. 12. Upon expiration of the lease term or earlier termination on account of default, Lessee shall deliver all keys to Lessor and surrender the leased premises in the same or better condition as when received, reasonable wear and tear excepted. Alterations constructed by Lessee with permission fran Lessor shall not be removed or restored to the original condition unless the terms of permission for the alteration so require. Depreciation and wear from ordinary use for the purpose for which the premises were let need not be restored but all repair for which Lessee is responsible shall be completed to the latest practical date prior to such surrender. -5- ~r . . . 13. If suit or action or any appeal therefrom is instituted in connection with any controversy arising out of this lease, the prevailing party shall be entitled to recover in addi tion to costs such sums as the court may <rljuclge reasonable as attorney fees. 14. Arrj notice required or permitted under the lease shall be given when actually delivered or when deposited in the United States Mail as certified mail addressed as follows: LESSOR: Donald N. Hong 85857 1st Street Eugene, OR 97405 LESSEE Dennis wingham 1565 SOUth "A" Street Springfield, OR 97477 or to such other address as may be specified fram time to time by either of the parties in writing. 15. No part of the leased property may be assigned, IlPrtgaged, or subleased, nor may aright of use of any portion of the property be conferred on any third person by any other means, without the pr ior written consent of Lessor. 'l'his provision shall apply to all transfers by operation of law and transfers to and by trustees in bankruptcy, receivers, administrators, executors and legatees. COnsent in one instance shall not constitute waiver of the foregoing provision. Subject to the above-stated limitations on transfer of Lessee's interest, this lease shall be binding upon and inure to the benefit of the parties, their respective successors and a.ssigns. IN WI..,~ WHEREXlF, the parties hereto by their designated representatives have herewith caused their signatures to be executed evidencing the agreement of the parties and each being bound to the provisions hereof. ~R j) r;/)f:Id.l*,~--;-- Date: ~ll~-yt , - - LESSEE. W: ~"-~~ f. l0t2. ~ :J Dennis Ingham tf'c- Date: 3 -~ -B'l -6-