Loading...
HomeMy WebLinkAboutItem 14- Property Management Contract AGENDA ITEM SUMMARY Meeting Date: 5/6/2024 Meeting Type: Regular Meeting Staff Contact/Dept.: Allie Camp Staff Phone No: 541-726-3688 Estimated Time: 5 minutes S P R I N G F I E L D C I T Y C O U N C I L Council Goals: Provide Financially Responsible and Innovative Government Services ITEM TITLE: PROPERTY MANAGEMENT CONTRACT ACTION REQUESTED: Direct the City Manager to enter/not enter into an agreement, substantially in the form provided, with Campbell Commercial Real Estate for commercial property management services. ISSUE STATEMENT: Property management entails expertise that City staff do not have or anticipate the strategic need to expand into. ATTACHMENTS: 1. Draft contract C#3621 2. Resolution 2022-14 DISCUSSION/ FINANCIAL IMPACT: In September of 2023, the City Manager’s Office released a Request for Proposals (RFP) for a Commercial Property Management Company. The RFP was marketed on the City’s website and through emails to seven potential applicants, three of which responded to a Request for Information released by the City for property management services in 2018. Additional marketing was done on the City’s website and through real estate and title company networking platforms. The RFP was open for 34 days and received one response from an out-of-state firm. Staff ultimately cancelled the RFP because the single respondent was not able to meet on-site requirements without greatly impacting costs. Draft Contract C#3621 (ATT 1) was established with a sole source procurement, and the value of the contract is $235,400 over three plus fiscal years. The vendor, Campbell Commercial Real Estate, has expertise in portfolios like the City’s and has been working successfully with Lane Council of Governments. Staff met with Campbell Commercial multiple times to assess philosophy, expertise, responsiveness, quality of service, and suitability for working with government. The contract scope includes both City and Springfield Economic Development Agency properties that currently lease to tenants, have the potential to lease to tenants, or require expertise to maintain the property’s values. Contract expenses will be proportionally divided across budgets. Resolution 2022-14 (ATT 2) was used to inform how best to work with this contractor. It defines a timeline and a draft lease for spaces at Booth Kelly. This draft lease has also been used for SEDA owned properties. This lease will continue to be utilized by Campbell Commercial to assure that the policy and goals of the Resolution are achieved. If properties or tenants require different terms than what is defined in Resolution 2022-14, those leases will come to Council for approval as in the past. The term of the Resolution, through FY27, was used to determine the term of the contract with Campbell Commercial. {00033167:1} Commercial Real Estate Management Agreement Contract #3621 Between: City of Springfield, (”Owner”) A Municipal Corporation of the State of Oregon 225 5th Street Springfield, OR 97477 And: L G Campbell Company, Inc., (“Agent”) DBA Campbell Commercial Real Estate Effective Date: May _______, 2024 AGREEMENT Section 1 APPOINTMENT OF MANAGING AGENT 1.1 APPOINTMENT AND ACCEPTANCE Owner hereby appoints Agent as sole and exclusive Agent of Owner to manage the Property described in paragraph 1.2 upon the terms and conditions provided herein. Agent accepts the appointment and agrees to furnish the services of its organization for the management of the Property; and Owner agrees to pay all e xpenses in connection with those services. 1.2 DESCRIPTION OF PROPERTY The Property to be managed by Agent under this Agreement is described as: Glenwood Master Plan Area Map included below- areas in green are City/SEDA ownership. The tax lots included in this scope of work are highlighted with pink. • 4190 Franklin Boulevard (the Skillern building)- industrial building; currently vacant and will remain vacant; will require regular drive by visits to assure it remains clean, safe, secured. • 207 N. Concord- industrial building; currently vacant and will remain vacant; will require regular drive by visits to assure it remains clean, safe, secured. • 4102-4150 Franklin Boulevard- vacant lot; will require regular drive by visits to assure it remains clean, safe, secured. • 325 N. Brooklyn Street (the Brombaugh Building)- small fabrication shop with seven tenants sharing space; currently working through leasing structure. • 4250-4258 Franklin Boulevard (the location of Trax Motor Sports)- leased to an individual who subleases to the sports shop on the site. Unaddressed tax lots in the Glenwood Master Plan Area Attachment 1 Page 1 of 15 {00033167:1} Map included below- areas in green are City/SEDA ownership. The tax lots included in this scope of work are highlighted with pink. • TL 17-03-34-41-00400 • TL 17-03-34-41-00500 • TL 17-03-34-41-01300 • TL 17-03-34-41-00700 • TL 17-03-34-42-01000 • TL 17-03-34-42-00700 • TL 17-03-34-42-00504 • TL 17-03-34-42-00501 Glenwood other • 3697 Franklin (Ace Trading)- small commercial building; approximately 3,200 square feet; currently vacant and will remain vacant; purchased for future Franklin Boulevard improvements; will require regular drive by visits to assure it remains clean, safe, secured. • 4095 Franklin Boulevard (formerly Tom Tapper’s Tavern)- fully fenced vacant lot; purchased for Franklin Boulevard improvements and future redevelopment; will need landscaping services. Downtown Attachment 1 Page 2 of 15 {00033167:1} • • • • • • • Additional properties may be added to the scope of services upon acquisition by the City or SEDA. 1.3 TERM The term of this Agreement shall be for an Initial period of three (3) years (the "initial term") from the 1st day of May 2024, to and including the 30th day of June, 2027, with Owner retaining two (2) one-year options to renew unless terminated as provided in section 19 herein. Each of said one-year renewal periods is referred to as a "term year." Section 2 BANK ACCOUNTS The accounts established under this Agreement shall at all times be established in Owner's name but under Agent's control. Agent's designees shall be the only parties authorized to draw upon such account. No amounts deposited in any accounts established under this Agreement shall in any event be commingled with any other funds of Agent. 2.1 OPERATING ACCOUNT Agent shall establish twoaccounts known as The City of Springfield Account and the SEDA account, within Agent's client trust accounts, but separate and apart from Agent's corporate accounts, for the deposit of receipts collected as described herein, in a bank or other institution whose deposits are insured by the federal government. Such depository shall be selected by the Agent. However, Agent shall not be held liable in the event of bankruptcy or failure of a depository. Funds in the 138 Main Street - office building, approximately 1,800 square feet, 1 tenant contracted for the space as part of their service contract with the City (tenant does not pay rent). 236 and 240 Main Street (Vino and Vango)- commercial, storage, and surface parking; one tenant; approximately 2,600 and 3,100 square feet respectively. 303 S 5th Street (Booth Kelly Industrial Complex)- office/commercial/light industrial/storage; approximately 250,000 square feet; 16 tenants, mostly long term; one vacant tenant space; minimal vacant non-tenant space; will require landscaping and regular drive by visits to assure it remails clean, safe, secured. 220 5th Street (Carter Building site)- vacant lot, undeveloped; will require regular drive by visits to assure it remains clean, safe, secured. 101 S. A Street (The Depot Building)- office building approximately 3,500 square feet; a portion of the adjacent parking lot; 1 tenant. 101 S. A Street (Train car)- small historic train car; included in lease with 101 S. A Street. 735-765 A Street (The Memorial Building)- commercial building approximately 17,700 square feet; small adjacent parking lot; currently utilized by Springfield Police Department for training; will need landscaping services. Attachment 1 Page 3 of 15 {00033167:1} Operating Account remain the property of Owner subject to disbursement of expenses by Agent as described in this Agreement Properties listed in section 1.2., will be allocated to Agent by Owner. 2.1.1 CONTINGENCY RESERVE Owner agrees to maintain a contingency reserve in an amount sufficient to enable Agent to pay the obligations of Owner under this Agreement as they become due. Owner and Agent shall review the amount of the contingency reserve from time to time and shall agree on a new contingency reserve amount when such is required. Section 3 COLLECTION OF RENTS AND OTHER RECEIPTS 3.1 AGENT’S AUTHORITY Agent shall collect (and give receipts for, if necessary) all rents, charges and other amounts receivable on Owner's account in connection with the management and operation of the Property. Such receipts shall be deposited in the Operating Account maintained by Agent for the Property. 3.2 SPECIAL CHARGES If permitted by applicable law, Agent may collect from tenants any or all of the following: an administrative charge for late payment of rent, a charge for returned or non- negotiable checks, Agent shall account to Owner for such charges. 3.3 SECURITY DEPOSITS Agent shall collect, deposit, and disburse tenants' security deposits in accordance with the terms of each tenant's lease. Agent shall comply with all applicable state or Inca! laws concerning the responsibility for security deposits and interest, if any Section 4 DISBURSEMENTS FROM OPERATING ACCOUNT 4.1 OPERATING EXPENSES From the Operating Account, Agent is hereby authorized to pay or reimburse itself for all expenses and costs of operating the Property and for all other sums due Agent under this Agreement, including Agent's compensation under Section 15. 4.2 DEBT SERVICE Owner shall give Agent advance written notice of at least fifteen days if Owner desires Agent to make any additional monthly or recurring payments (such as mortgage indebtedness, general taxes, or special assessments, or fire, steam boiler, or other insurance premiums) out of the proceeds from the Property. If Owner notifies Agent to make such payments after the beginning of the term of this Agreement, Agent shall have the authority to name a new contingency reserve amount pursuant to paragraph 2.1.1 of this Agreement, and Owner shall maintain this new contingency reserve amount at all times in the Operating Account. 4.3 NET PROCEEDS To the extent that funds are available, and after maintaining the cash contingency reserve amount as specified in paragraph 2.1.1, Agent shall transmit cash ( Attachment 1 Page 4 of 15 {00033167:1} . balances to Owner periodically, as follows: Monthly at end of month. Such periodic cash balances shall be remitted to the following person(s), in the percentage(s) specified, and at the address(es) shown: City Account Number(s) To Be Charged (Include Percentages): Account Number Percentage 229-01100-1007-611008 (GW) 16.5% 230-01100-1007-611008 (DT) 16.5% 618-07300-7902-611008 (BK) 67% Section 5 AGENT NOT REQUIRED TO ADVANCE FUNDS In the event that the balance in the Operating Account is at any time insufficient to pay disbursements due and payable under paragraphs 4.1 and 4.2 above, Owner shall, immediately upon notice, remit to Agent sufficient funds to cover the deficiency and replenish the contingency reserve. In no event shall Agent be required to use its own funds to pay such disbursements, nor shall Agent be required to advance any monies to Owner, to the Security Deposit Account, or to the Operating Account. Section 6 FINANCIAL AND OTHER REPORTS By the tenth day of each month, Agent shall furnish Owner with a statement of cash receipts and disbursements from the operation of the Property during the previous month. In addition, Agent shall, on a mutually acceptable schedule, prepare and submit to Owner such other reports as are agreed on by both parties. 6.1 OWNER'S RIGHT TO AUDIT Owner shall have the right to request periodic audits of all applicable accounts managed by Agent, and the cost of such audit(s) shall be paid by Owner. The Agent shall keep proper books of the account, recording all income and expense attributed to the property, permit Owner, or assigned auditor, to inspect the books at all reasonable times, and retain the books for at least six (6) years. After the end of the six-year retention period Agent will destroy the books unless instructed otherwise in writing. Section 7 ENFORCEMENT OF LEASES Agent is authorized to institute, in Owner's name, all legal actions or proceedings for the enforcement of any lease term, for the collection of rent or other income from the Property, or for the evicting or dispossessing of tenants or other persons from the Property, with Owner’s prior approval. Agent is authorized to sign and serve such notices as Agent deems necessary Attachment 1 Page 5 of 15 {00033167:1} for lease enforcement, including the collection of rent or other income. Agent is authorized, when expedient, to settle, compromise, and release such legal actions or suits or reinstate such tenancies. Any monies for such settlements paid out by Agent shall not exceed $1,500.00 without prior approval by Owner. Attorneys' fees, filing fees, court costs, and other necessary expenses incurred in connection with such actions and not recovered from tenants shall be paid out of the Operating (and/or) Reserve Account(s) or reimbursed directly to Agent by Owner. Agent may select the attorney of its choice to handle such litigation. Section 8 MAINTENANCE AND REPAIR Agent ls authorized to make or cause to be made, through contracted services or otherwise, all ordinary repairs and replacements reasonably necessary to preserve the Property in its present condition and for the operating efficiency of the Property, and all alterations required to comply with lease requirements, governmental regulations, or insurance requirements, Agent is also authorized to decorate the Property and to purchase or rent, on Owner's behalf, all equipment, tools, appliances, materials, supplies, uniforms, and other items necessary for the management, maintenance, or operation of the Property. Such maintenance and decorating expenses shall be paid out of the Operating (and/or) Reserve Account(s). This section applies except where decorating and/or maintenance are at tenants' expense as stipulated in a lease. 8.1 APPROVAL FOR EXCEPTIONAL MAINTENANCE EXPENSE The expense to be incurred for any one item of maintenance, alteration, refurbishing, or repair shall not exceed the sum of $2,500.00, unless such expense is specifically authorized by Owner, or is incurred under such circumstances as Agent shall reasonably deem to be an emergency. In an emergency where repairs are immediately necessary for the preservation and safety of the Property, or to avoid the suspension of any essential service to the Property, or to avoid danger to life or property, or to comply with federal, state, or local law, such emergency repairs shall be made by Agent at Owner's expense without prior approval. 8.2 AUTHORIZATION OF AGENT’S MAINTENANCE PERSONNEL Owner authorizes Agent's use of Agent's maintenance staff for operations of the building. Agent shall maintain complete records of hours as they are assigned to specific tasks which shall be available to Owner upon request. Maintenance staff shall be charged at the rate of $50.00 per hour, which rate can be changed upon written agreement between Agent and Owner. All materials shall be charged Owner at the actual cost with no markup by Agent. · Section 9 CONTRACTS, UTILITIES AND SERVICES Agent is authorized to negotiate contracts for nonrecurring items of expense, not to exceed $2,000.00 unless approved by the Owner, and to enter into agreements in Owner’s name for all necessary repairs, maintenance, minor alterations, and utility services. Agent shall, in Owner’s name and at Owner’s expense, make contracts on owner’s behalf for electricity, gas, fuel, or water and such other services as Agent shall deem necessary or prudent for the Attachment 1 Page 6 of 15 {00033167:1} operation of the Property. All utility deposits shall be the Owner’s responsibility, except that Agent may pay same from the Operating (and/or) Reserve Account(s) at Owner’s request. Section 10 RELATIONSHIP OF AGENT TO OWNER The relationship of the parties to this Agreement shall be that of Principal and Agent, and all duties to be performed by Agent under this Agreement shall be for and on behalf of Owner, in Owner's name, and for Owner account. In taking any action under this Agreement, Agent shall be acting only as Agent for Owner, and nothing in this Agreement shall be construed as creating a partnership, joint venture, or any other relationship between the parties to this Agreement except that of Principal and Agent, or as requiring Agent to bear any portion of losses arising out of or connected with the ownership or operation of the Property. Nor shall Agent at any time during the period of this Agreement be considered a direct employee of Owner. Neither party shall have the power to bind or obligate the other except as expressly set forth in this Agreement, except that Agent is authorized to act with such additional authority and power as may be necessary to carry out the spirit and intent or this Agreement. Section 11 SAVE HARMLESS The Owner shall save the Agent harmless from all claims, actions and judgment for damages on account of injuries to person or property suffered or claims to have been suffered by an employee of their person whomsoever in or about the property and to defend the Agent against same. Owner shall not hold Agent liable for any error in judgment or for any mistake of fact or law, or for anything which Agent may do or refrain from doing hereinafter except in cases of willful misconduct or gross negligence. Owner agrees that Agent shall have no liability for the existence or use by any person other than Agent or an agent of Agent of any hazardous substance as defined by state or federal law; and Owner agrees to hold Agent harmless from any such claims. Section 12 LIABILITY INSURANCE Owner shall obtain and keep in force adequate insurance against physical damage (e.g., fire with extended coverage endorsement, boiler and machinery, etc.) and against liability for loss, damage, or injury to property or persons which might arise out of the occupancy, management, operation, or maintenance of the Property. The amounts and types of insurance shall be acceptable to both Owner and Agent, and any deductible required under such insurance policies shall be Owner's expense. Agent shall be covered as an additional Insured on all liability Insurance maintained with respect to the Property. Liability insurance shall be adequate to protect the interests of both Owner and Agent and in form, substance, and amounts reasonably satisfactory to Agent. Owner agrees to furnish Agent with certificates evidencing such insurance or with duplicate copies of such policies within fifteen (15) days of the execution of this Agreement. If Owner fails to do so, Agent may, but shall not.be obligated to, place said insurance and charge the cost thereof to the Operating (and/or) Reserve Account(s). Said policies shall provide that notice of default or cancellation shall be sent to Agent as well as Attachment 1 Page 7 of 15 {00033167:1} Owner and shall require a minimum of thirty (30) days' written notice to Agent before any cancellation of or changes to said policies. Section 13 AGENT ASSUMES NO LIABILITY Agent assumes no liability whatsoever for any acts or omissions of Owner, or any previous owners of the Property, or any previous management or other agent of either. Agent assumes no liability for any failure of or default by any tenant in the payment of any rent or other charges due Owner or in the performance of any obligations owed by any tenant to Owner pursuant to any lease or otherwise. Nor does Agent assume any liability for previously unknown violations of environmental or other regulations which may become known during the period this Agreement is in effect. Any such regulatory violations or hazards discovered by Agent shall be brought to the attention of Owner in writing, and Owner shall promptly cure them. Section 14 OWNER RESPONSIBLE FOR ALL EXPENSES OF LITIGATION Owner shall pay all expenses incurred by Agent, including, but not limited to, reasonable attorneys' fees and Agent's costs and time, and any liability, fines, penalties or the like, in connection with any claim, proceeding, or suit involving an alleged violation by Agent or Owner, or both, of residential landlord tenant law or other law affecting the Property or activities related to the Property. 14.1 FEES FOR LEGAL ADVICE With Owner’s approval, Owner shall pay reasonable expenses incurred by Agent in obtaining legal advice regarding compliance with any law affecting the Property or activities related to the Property. If such expenditure also benefits others for whom Agent in this Agreement acts in a similar capacity, Owner agrees to pay an apportioned amount of such expense. Section 15 AGENT'S COMPENSATION AND EXPENSES As compensation for the services provided by Agent under this Agreement (and exclusive of reimbursement of expenses to which Agent is entitled hereunder), Owner shall pay Agent as follows: 15.1 FOR MANAGEMENT SERVICES During the term of this agreement, the Owner will pay to Agent, monthly a fee equal to- $7,700/month for the first 12 months. $5,500/month for months 13 through 38. Breakdown: FY 24 (May- June 2024 at $7,700/month): $15,400 Attachment 1 Page 8 of 15 {00033167:1} FY 25 (July 2024- April 2025 at $7,700/month; May- June 2025 at $5,500/month): $88,000 FY 26 (July 2025- June 2026 at $5,500/month): $66,000 FY 27 (July 2026- June 2027 at $5,500/month): $66,000 These fees shall be collected by Agent from the Property during the month together with any out-of-pocket expenses and any fees charged to tenants. The Agent may pay the fee to itself as an expense of the operation. For services above and beyond those noted above, an additional fee will be negotiated. Agent shall pay over net funds after expenses with the monthly operating statement, except that Agent may retain a reasonable amount in reserve if deems it prudent. 15.2 NEW LEASES FOR COMMERCIAL PROPERTY If during the term of this agreement, a new or existing lease is procured for any commercial portion of the subject premises, Agent will be paid a lease commission of _5_% of the scheduled gross rental for the full term of the lease of such new tenant, and 2.5 % for renewal of existing leases. 15.3 ADDITIONAL SERVICES Should the Agent provide any services to the Owner which are not customary services or services not required hereunder such as, but not limited to, services related to coordination of rehabilitation, remodeling, reconstruction or tenant improvements, tax appeals refinancing of Project, or implementation of an asbestos abatement or operations and maintenance plan or any other such requirements of local, state or federal laws (“Additional Owner Services”), then a separate charge for such Additional Services shall be shall be billed at an hourly rate or on other such basis as may be agreed upon between the parties 15.4 LITIGATION EXPENSE In the event of litigation between the parties to this agreement, arising out of or relating to the terms of this agreement, including any appeal therefrom and including any bankruptcy proceeding in which either party is a debtor, the prevailing party shall be entitled to recover its reasonable attorney fees from the other. Section 16 REPRESENTATIONS Owner represents and warrants: That Owner has full power and authority to enter this Agreement; that there are no written or oral agreements affecting the Property other than tenant leases, copies of which have been furnished to Agent; that there are no recorded easements, restrictions, reservations, or rights of way which adversely affect the use of the Property for the purposes intended under this Agreement; that to the best of Owner's knowledge, the property is zoned for the intended use; that all leasing and other permits for the operation of the Property have been secured and are current; that the building and its construction and operation do not violate any applicable statutes, laws, ordinances, rules, regulations, orders, or the like (including, but not limited to, those pertaining to hazardous or toxic substances); that the Attachment 1 Page 9 of 15 {00033167:1} building does not contain any asbestos, urea, formaldehyde, radon, or other toxic or hazardous substance; and that no unsafe condition exists. Section 17 STRUCTURAL CHANGES Owner expressly withholds from Agent any power or authority to make any structural changes in any building, or to make any other major alterations or additions in or to any such building or to any equipment in any such building, or to incur any expense chargeable to Owner other than expenses related to exercising the express powers vested in Agent through this Agreement, without the prior written consent of the Owner. However, such emergency repairs as may be required because of danger to life or property, or which are immediately necessary for the preservation and safety of the Property or the safety of the tenants and occupants thereof, or required to avoid the suspension of any necessary service to the Property, or to comply with any applicable federal, state, or local laws, regulations, or ordinances, shall be authorized, and Agent shall notify Owner appropriately. Section 18 BUILDING COMPLIANCE Agent does not assume and is given no responsibility for compliance of the Property or any building thereon or any equipment therein with the requirements of any building codes or with any statute, ordinance, law, or regulation of any governmental body or of any public authority or official thereof having jurisdiction, except to notify Owner promptly or forward to Owner promptly any complaints, warnings, notices, or summonses received by Agent relating to such matters. Owner represents that to the best of Owner's knowledge the Property and all such equipment comply with all such requirements, and Owner authorizes Agent to disclose the ownership of the Property to any such officials and agrees to indemnify and hold Agent, its representatives, servants, and employees, harmless of and from all loss, cost, expense, and liability whatsoever which may be imposed by reason of any present or future violation or alleged violation of such laws, ordinances, statutes, or regulations. Section 19 TERMINATION 19.1 TERMINATION BY EITHER PARTY This Agreement may be terminated by either Owner or Agent, with or without cause, during the initial term year or of any following term year upon the giving of a minimum of Forty-Five (45) days prior written notice to the other party. Effective date or termination shall be the last day of the calendar month following the minimum notification period. 19.2 TERMINATION FOR CAUSE Notwithstanding the foregoing, this Agreement shall terminate in any event, and all obligations of the parties hereunder shall cease (except as to liabilities or obligations which have accrued or arisen prior to such termination, or which accrue pursuant to Attachment 1 Page 10 of 15 {00033167:1} paragraph 19.3 as a result of such termination, and obligations to insure and indemnify), upon the occurrence of any of the following events: (a) BREACH OF AGREEMENT--Thirty (30) days after the receipt of notice by either party to the other specifying in detail a material breach of this Agreement, if such breach has not been cured within said thirty (30) day period; or if such breach is of a nature that it cannot be cured within said thirty (30) day period but can be cured within a reasonable time thereafter, if efforts to cure such breach have not commenced or/and such efforts are not proceeding and being continued diligently both during and after such thirty (30) day period prior to the breach being cured. HOWEVER, the breach of any obligation of either party hereunder to pay any monies to the other party under the terms of this Agreement shall be deemed to be curable within thirty (30) days. (b) FAILURE TO ACT, ETC.--ln the event that any insurance required of Owner is not maintained without any lapse, or it is alleged or charged that the Property, or any portion thereof, or any act or failure to act by Owner, its agent and employees with respect to the Property, fails to comply with any law or regulation, or any order or ruling of any public authority, and Agent, in its sole discretion, considers that the action or position of Owner or its representatives with respect thereto may result in damage or liability to Agent, or disciplinary proceeding with respect to Agent's license, Agent shall have the right to terminate this Agreement at any time by written notice to Owner of its election to do so, which termination shall be effective upon the service of such notice. Such termination shall not release the indemnities of Owner set forth herein. (c) EXCESSIVE DAMAGE--Upon the destruction of or substantial damage to the Property by any cause, or the taking of all or a substantial portion of the Property by eminent domain, in either case making it impossible or impracticable to continue operation of the Property. (d) INADEQUATE INSURANCE--lf Agent deems that the liability insurance obtained by Owner per section 12 is not reasonably satisfactory to protect its interest under this Agreement, and if Owner and Agent cannot agree as to adequate insurance, Agent shall have the right to cancel this Agreement upon the service of notice to Owner. 19.3 TERMINATION COMPENSATION If (i) Owner terminates this Agreement before the end of the initial term or any subsequent term year as provided in paragraph 19.1 above for any reason other than for a breach by Agent under paragraph 19.2(a) above, or if (ii) Agent terminates this Agreement for a breach by Owner under para- graph 19.2(a) above or pursuant to the provisions of paragraphs 19.2(b) or 19.2(d) above, then in any such event, Owner shall be obligated to pay Agent compensation through the last effective day of the contract. 19.4 OWNER RESPONSIBLE FOR PAYMENTS Attachment 1 Page 11 of 15 {00033167:1} Upon termination of or withdrawal from this Agreement, owner shall assume the obligations of any contract or outstanding bill executed by Agent under this Agreement for and on behalf of Owner and responsibility for payment of all unpaid bills. In addition, Owner shall furnish Agent security, in an amount satisfactory to Agent, against any obligations or liabilities which Agent may have properly incurred on Owner's behalf under this Agreement. Agent may withhold funds for ninety (90) days after the end of the month in which this Agreement is terminated, in order to pay bills previously incurred but not yet invoiced and to close accounts. Agent shall deliver to Owner, within ninety (90) days after the end of the month in which this Agreement is terminated, any balance of monies due Owner or of tenant security deposits, or both, which were held by Agent with respect to the Property, as well as a final accounting reflecting the balance of income and expenses with respect to the Property as of the date of termination or withdrawal, and all records, contracts, leases, receipts for deposits, and other papers or documents which pertain to the Property. Section 20 INDEMNIFICATION SURVIVES TERMINATION All representations and warranties of the parties contained herein shall survive the termination of this Agreement. All provisions of this Agreement that require Owner to have insured or to defend, reimburse, or indemnify Agent (including, but not limited to, paragraphs 2.1, 2.3, 5, 10, 12, 13, 14, 15.7, 18, 19.3, and 19.4) shall survive any termination; and if Agent is or becomes involved in any proceeding or litigation by reason of having been Owner's Agent, such provisions shall apply as if this Agreement were still in effect. Section 21 HEADINGS All headings and subheadings employed within this Agreement and in the accompanying List of Provisions are inserted only for convenience and ease of reference and are not to be considered in the construction or interpretation of any provision of this Agreement. Section 22 FORCE MAJEURE Any delays in the performance of any obligation of Agent under this Agreement shall be excused to the extent that such delays are caused by wars, national emergencies, natural disasters, strikes, labor disputes, utility failures, governmental regulations, riots, adverse weather, and other similar causes not within the control of Agent, and any time periods required for performance shall be extended accordingly. Section 23 COMPLETE AGREEMENT This Agreement, including any specified attachments, constitutes the entire agreement between Owner and Agent with respect to the management and operation of the Property and supersedes and replaces any and all previous management agreements entered into or/and negotiated between Owner and Agent relating to the Property covered by this Agreement. No Attachment 1 Page 12 of 15 {00033167:1} change to this Agreement shall be valid unless made by supplemental written agreement executed and approved by Owner and Agent. Except as otherwise provided herein, any and all amendments, additions or deletions to this Agreement shall be null and void unless approved by Owner and Agent in writing. Each party to this Agreement hereby acknowledges and agrees that the other party has made no warranties, representations, covenants, or agreements, express or implied, to such party, other than those expressly set forth herein, and that each party, in entering into and executing this Agreement, has relied upon no warranties, representations, covenants, or agreements, express or implied, to such party, other than those expressly set forth herein. Section 24 RIGHTS CUMULATIVE; NO WAIVER No right or remedy herein conferred upon or reserved to either of the parties to this Agreement is intended to be exclusive of any other right or remedy, and each and every right and remedy shall be cumulative and in addition to any other right or remedy given under this Agreement or now or hereafter legally existing upon the occurrence of an event of default under this Agreement. The failure of either party to this Agreement to insist at any time upon the strict observance or performance of any of the provisions of this Agreement, or to exercise any right or remedy as provided in this Agreement, shall not impair any such right or remedy or be construed as a waiver or relinquishment of such right or remedy with respect to subsequent defaults. Every right and remedy given by this Agreement to the parties to it may be exercised from time to time and as often as may be deemed expedient by those parties. Section 25 APPLICABLE LAW AND PARTIAL INVALIDITY The execution, interpretation, and performance of this Agreement shall in all respects be controlled and governed by the laws of the State of Oregon. If any part of this Agreement shall be declared invalid or unenforceable, Agent shall have the option to terminate this Agreement by notice to Owner. Section 26 NOTICES Any notices, demands, consents, and reports necessary or provided for under this Agreement shall be in writing and shall be addressed as follows, or at such other address as Owner and Agent individually may specify hereafter in writing: Agent: Campbell Commercial Real Estate Patric Campbell 777 High St, #100 Eugene, Oregon 97401 patricc@campbellre.com 541-484-2214 Owner: City of Springfield and SEDA representative– Allie Camp acamp@springfield-or.gov 541.726.3688 Attachment 1 Page 13 of 15 {00033167:1} Such notice or other communication may be mailed by United States registered or certified mail, return receipt requested, postage prepaid, and may be deposited in a United States Post Office or a depository for the receipt of mail regularly maintained by the post office. Such notices, demands, consents, and reports may also be delivered by hand or by any other receipted method or means permitted by law. For purposes of this Agreement, notices shall be deemed to have been "given" or "delivered" upon personal delivery thereof or forty-eight (48) hours after having been deposited in the United States mails as provided herein. Section 27 AGREEMENT BINDING UPON SUCCESSORS AND ASSIGNS This agreement shall be binding upon the parties hereto and their respective personal representatives, heirs, administrators, executors, successors and assigns. SIGNATURES City of Springfield L G Campbell Company, Inc. A Municipal Corporation of the dba Campbell Commercial State of Oregon Real Estate By: By: Name: Name: Title: Title: Date: Date: Attachment 1 Page 14 of 15 {00033167:1} EXHIBIT A Fee Schedule for Additional Services Additional Services as per section 15.3 of the Management Agreement must be requested by the owner prior to incurring a fee obligation. Fees for such requested services are as follows: 1. Maintenance and repair performed by Campbell Commercial maintenance personnel are billed at time and materials. Labor rates are currently $50.00 per hour for general maintenance. These rates are subject to change. Maintenance people are on-call 24 hours per day for emergency call out. Call outs between the hours of 5:00 p.m. and 8:00 a.m. are billed at time and one half. Regular rates apply Monday through Friday at 8:00 a.m. to 5:00 p.m. 2. All other services shall be billed at an hourly rate or on other such basis as may be agreed upon between the parties. Attachment 1 Page 15 of 15 CITY OF SPRINGFIELD, OREGON RESOLUTION NO. 2022-14 A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO COMMERCIAL LEASES OF THE BOOTH KELLY PROPERTY THROUGH JULY 1, 2027 WHEREAS, ORS 271.310(1) provides that whenever a political subdivision, including the City of Springfield, owns real property that is not needed for public use or whenever the public interest can be furthered, the political subdivision may sell, convey, exchange, or lease for not more than 99 years all or any part of the property to another governmental body, private individual, or corporation; WHEREAS, ORS 271.310(4) further states that a political subdivision may lease property that is not immediately needed for public use if the property will not be needed for public use within the period of the lease; WHEREAS, ORS 271.360 requires that every lease entered into pursuant to the statutes must be authorized by ordinance or order, including resolution, of the body executing the lease and shall provide terms and conditions as fixed and determined by the governing body; WHEREAS, the City of Springfield owns the real property commonly referred to as the Booth Kelly Mill site (Map &Tax Lot 17-03- 35-00-00307-1416799); WHEREAS, the suites and other spaces within the Booth Kelly Mill site are not needed for public use within the next five (5) years, and it is in the public interest to offer all or part of the property for lease to other governmental bodies, private individuals, or corporations; WHEREAS, the City Council would like to delegate its authority to enter into month-to-month leases for all or part of the Booth Kelly Mill site to the City Manager because tenants of month-to-month leases change regularly; and WHEREAS, the City Council wishes to authorize the City Manager to enter into leases on the terms and conditions as generally provided in the form of lease agreement attached as Exhibit A, or as may be modified with approval from the City Attorney; NOW, THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF THE CITY OF SPRINGFIELD: Section 1: The City Council hereby delegates its authority to enter into month-to-month leases of the Booth Kelly Mill site to the City Manager, upon the terms and conditions as provided in Exhibit A or other terms and conditions approved by the City Attorney. Section 2: The City Council hereby delegates its authority to waive penalties and interest regarding late lease payments to the City Manager, and delegates to the City Manager the authority to take all other enforcement actions that the City Manager determines are necessary to enforce the terms of a lease agreement including, but not limited to, issuing notices of default, terminating tenancies, and accounting for security deposits. Section 3: This Resolution terminates on July 1, 2027, unless extended by further resolution of the City Council. Attachment 2 Page 1 of 18 Section 4: This Resolution will take effect immediately upon adoption by the Council and approval by the Mayor. ADOPTED by the Common Council of the City of Springfield this 18 day of April , 2022, by a vote of 5 for and 0 against. (1 absent - Pitts) ATTEST: TO & APPROVED ASAS TO FORM r uza-1Cra r DATE: 4118199 City Recorder S PRI NG FI ELD CITY ATTORN EY'S OFFICE Resolution No.2022-14Attachment 2 Page 2 of 18 Exhibit A, Page 1 of 16 COMMERCIAL LEASE AGREEMENT Contract# Date:Date] Between: City of Springfield Landlord") A Municipal Corporation of the State of Oregon 225 Fifth Street Springfield,OR 97477 And: Tenant Name] Tenant") 303 S. 5th Street, Suite [##] Springfield,OR 97477 Phone: [###-###-####] Landlord leases to Tenant and Tenant leases from Landlord the following described property(the"Premises")on the terms and conditions stated below: Booth Kelly Center, 303 S. 5th Street, Suite[###], Springfield,Oregon 97477. Description of leased space with approximate square footage]. Section 1. Occupancy 1.1 Oriainal Term. The original term of this lease shall commence [Date] and continue through [End date—one year unless otherwise agreed upon] unless sooner terminated or extended as set forth in this Lease Agreement. 1.2 Possession. Tenant's right to possession and obligations under the lease shall commence on [Date]. 1.3 Renewal. Unless Tenant notifies Landlord in writing prior to the expiration of the initial term, this lease will automatically renew on a month-to-month basis upon the same terms and conditions provided herein,except that rent will be adiusted as provided in Section 2. 3. During the renewal term, this lease may be terminated by either party without cause based upon 30 days written notice. Tenant shall have the rEliti8 r the tome the eptien is exeFeised.- 00023566:1} C####-Commercial Lease Agreement:[Tenant Name] Resolution No.2022-14Attachment 2 Page 3 of 18 Exhibit A, Page 2 of 16 Section 2. Rent 2.1 Base Rent. During the original term,Tenant shall pay to Landlord base rent in the amount of$ [Total annual rent] per year. Rent shall be paid in monthly installments of Monthly rent] per month commencing on [Date] and continuing on the first day of each month thereafter during the term of this Lease. Rent for any partial calendar month will be prorated based on a thirty(30)day month for the number of days during that partial month the premises are occupied by Tenant. 2. 2 Additional Rent. In addition to the Base Rent,Tenant shall pay all utilities(see Section 7. 6), all real property taxes levied or assessed against the entire premises(see Section 7.1)and all insurance premiums incurred by the Landlord for the premises(see Section 6.1). The additional rent shall be paid by Tenant within ten(10)days after demand therefore by Landlord; provided, however that at Landlord's sole discretion option Tenant shall pay one twelfth of the estimated annual taxes and insurance premiums each month with the base rent if the base rent is paid in monthly installments. 2. 3 Base Rent for Renewal Term. 1R the n eRt that Tr.r aRt n s the FeRewal ept+eRs, ;eR t he base rent for the renewal term shall be adjusted for the first month of the renewal term and every 12 months thereafter, by the increase in the Western Region C.P.I.-U City Size B based on preceding 12 months percentages speE 1. 2.4 Security Deposit. To secure Tenant's compliance with all terms of this lease, Tenant shall pay Landlord the sum of$[Deposit amount] as a deposit. [Ifnew/ease for prior tenantinciude the following:Tenant and Landlord agree that the deposit paid on date of original lease) under lease C####shall be applied to the present lease.]The 00023566:1} C####-Commercial Lease Agreement:[Tenant Name] Resolution No.2022-14Attachment 2 Page 4 of 18 Exhibit A, Page 3 of 16 deposit shall be a debt from Landlord to Tenant, refundable 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 or any damage to premises caused by Tenants conduct, under this lease or under prior lease C1371. Offset against the deposit shall not be an exclusive remedy in any of the above cases, but may be invoked by Landlord,as its option, in addition to any other remedy provided by law or this lease for Tenant's nonperformance. Landlord shall give notice to Tenant each time 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 Tenant shall use and occupy the Premises continuously during the term of the lease. The premises shall be used for[description of tenant's approved uses of the leased premises] and for no other purpose without the consent of Landlord,which consent is in Landlord's sole discretion. There will be no storage of Tenant's merchandise, inventory, equipment or other materials outside the leased premises. Other than the leased premises, no other areas of Booth Kelly building or the Booth Kelly parking area and grounds shall be utilized for storage by Tenant. [Description of any approved use of parking areas,storage aside from vehicle parking,such as cafe parking,etc.]Tenant parking is not to exceed [#] vehicles. 3. 2 Restrictions on Use. In connection with the use of the Premises,Tenant shall: a) 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, but Tenant shall not be required to make any structural changes to effect such compliance unless such changes are required because of Tenant's specific use. b) Refrain from any activity that would make it impossible to insure the Premises against casualty,would increase the insurance rate,or would prevent Landlord from taking advantage of any ruling of the Oregon Insurance Rating Bureau, or its successor,allowing Landlord to obtain reduced premium rates for long-term fire insurance policies,unless Tenant pays the additional cost of the insurance. 00023566:1} C####-Commercial Lease Agreement:[Tenant Name] Resolution No.2022-14Attachment 2 Page 5 of 18 Exhibit A, Page 4 of 16 c) Refrain from any use that would be reasonably offensive to other tenants or owners or users of neighboring premises or that would tend to create a nuisance or damage the reputation of the premises. d) Refrain from loading the electrical system or floors beyond the point considered safe by a competent engineer or architect selected by Landlord. e) Refrain from making any marks on or attaching any sign, insignia,antenna, aerial,or other device to the exterior or interior walls,windows,or roof of the premises without the prior written consent of Landlord. f) 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 business 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, handled,or stored on the Premises. Upon the expiration 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. The term Hazardous Substance shall mean any hazardous,toxic, infectious or radioactive substance, waste,and material as defined or listed by any Environmental Law and shall include,without limitation,petroleum oil and its fractions. g) 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 where Lessee Contamination is present to the condition existing prior to the introduction of the Lessee Contamination; 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 any remedial action that may be necessary or appropriate on or about the Premises or other private or public facilities to remediate Lessee Contamination shall be approved by Landlord prior to their employment by Tenant,which approval will not be unreasonably withheld. 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 have the work done by the Consultants at Tenant's sole expense and shall indemnify and hold Landlord and Landlord's agents and 00023566:1} C####-Commercial Lease Agreement:[Tenant Name] Resolution No.2022-14Attachment 2 Page 6 of 18 Exhibit A, Page 5 of 16 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,and for any liability to any third party incurred by any of them,and for any claim by any third party against Landlord,or Landlord's agents or employees by reason of any such work conducted by Consultants h)As used herein,the term "Hazardous Substances" means any hazardous,toxic, infectious or radioactive substance, material or waste that has been previously regulated during the previous tenancy of Tenant or is or becomes regulated during the term of this lease by any Environmental Law(as defined in Section 3. 2(6) above)or any local governmental authority,the State of Oregon,or the United States Government for the purpose of protecting human health or the environment. The term Hazardous Substances" includes,without limitation, petroleum oil and its fractions and any material or substance which is designated as a hazardous substance pursuant 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 the provisions of the Springfield Fire Code,as adopted by the City or County in which the subject property is located,as amended from time to time. Section 4. Repairs and Maintenance 4.1 Landlord's Obligations. The following shall be the responsibility of Landlord: a) Repairs and maintenance of the roof and gutters,exterior walls(including painting), bearing walls,structural members,floor slabs,and foundation. b) Repair of sidewalks,driveways,curbs,shared parking areas, and areas used in common by Tenant and Landlord or tenants of other portions of the same building. c) Repair and maintenance of exterior water,sewage,gas,and electrical services up to the point of entry to the leased Premises. d) Repair of the heating and system other than ordinary maintenance. 4.2 Tenant's Obligations. The following shall be the responsibility of Tenant: a) Repair of interior walls,ceilings,doors,windows,and related hardware, light fixtures,plumbing fixtures,switches,and wiring and plumbing from the point of entry to the Premises. b) Any repairs necessitated by the negligence of Tenant,its agents, employees, and invitees, including repairs that would otherwise be the responsibility of Landlord. 00023566:1} C####-Commercial Lease Agreement:[Tenant Name] Resolution No.2022-14Attachment 2 Page 7 of 18 Exhibit A, Page 6 of 16 c) Ordinary maintenance of the heating system and any repairs necessary because of improper maintenance. d) Any repairs or alterations required under Tenant's obligation to comply with laws and regulations as set forth in Section 3.2(a). e) Repair of leased parking area including paving,striping and fencing. f) All other repairs to the premises which Landlord is not required to make under Section 4.1. 4.3 Landlord's Interference with Tenant. In performing any repairs,replacements, alterations,or other work performed on or around the Premises, Landlord shall not cause unreasonable interference with use of the Premises by Tenant. Tenant shall have no right to an abatement of rent nor any claim against Landlord for any inconvenience or disturbance resulting from Landlord's activities performed in conformance with the requirement of this provision. 4. 4 Reimbursement for Reoairs Assumed. If either party fails or refuses to make repairs that are required by this Section,the other party may make the repairs and charge the actual costs of repairs to the first party. Such expenditures by Landlord shall be reimbursed by Tenant on demand together with interest at the rate of 120/0 per annum from the date of expenditure by Landlord. Such expenditures by Tenant may be deducted from rent and other payments subsequently becoming due or, at Tenant's election, collected directly from Landlord. Except in an emergency creating an immediate risk of personal injury or property damage, neither parry may perform repairs which are the obligation of the other party and charge the other parry for the resulting expense unless at least 15 business days before work is commenced,the defaulting parry is given notice in writing outlining with reasonable particularity the repairs required,and such parry fails within that time to initiate such repairs in good faith. 4.5 Inspection of Premises. Landlord shall have the right to inspect the Premises at any reasonable time or times to determine the necessity of repair. Whether or not such inspection is made,the duty of Landlord to make repairs shall not mature until a reasonable time after Landlord has received from Tenant written notice of the repairs that are required. Section 5. Alterations 5.1 Alterations Prohibited. Tenant shall make no improvements or alterations on the Premises 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 00023566:1} C####-Commercial Lease Agreement:[Tenant Name] Resolution No.2022-14Attachment 2 Page 8 of 18 Exhibit A, Page 7 of 16 workmanlike manner,and in compliance with applicable laws and building codes. 5. 2 Ownership and Removal of Alterations. All improvements and alterations performed on the Premises by either Landlord or Tenant shall be the property of Landlord when installed unless the applicable Landlord's consent or work sheet specifically provides otherwise. Improvements and alterations installed by Tenant shall,at Landlord's option,be removed by Tenant and the premises restored unless the applicable Landlord's consent or work sheet specifically provides otherwise. Section 6. Fire Insurance 6.1 Fire Insurance. Landlord shall keep the Premises insured on a standard all risks of loss insurance policy including,at Landlord's option,earthquake and flood coverage. Tenant shall pay for this insurance as additional rent in accordance with Section 2. 2. 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 business interruption insurance in an amount sufficient to pay for one year's rent. 6.2 Waiver of Subroaation. Neither the Landlord nor the Tenant shall be liable to the other for loss arising out of damage to or destruction of the Premises,or the building or improvements of which the Premises are a part or with which they are connected, or the contents of any thereof,when such loss is caused by any of the perils which are or could be included within or insured against by a standard all risk property insurance policy. All such claims for any and all loss, however caused, hereby are waived. 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 that the Landlord and the Tenant shall provide their own property insurance and that both parties shall look to their respective insurance carriers for reimbursement for any such loss,and further, that the insurance carriers involved shall not 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 policies,or the proceeds thereof, unless specifically covered therein as a joint insured. Section 7. Taxes; Utilities 7.1 Property Taxes. Tenant shall pay as due all taxes on its personal property located on the Premises. Tenant shall pay all real property taxes and special assessments levied against the premises as additional rent in accordance with Section 2. 2. 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 00023566:1} C####-Commercial Lease Agreement:[Tenant Name] Resolution No.2022-14Attachment 2 Page 9 of 18 Exhibit A, Page 8 of 16 treated the same as general real property taxes as set forth in 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. 7.4 Proration of Taxes. Tenant's share of real property taxes and assessments for the years in which this lease commences or terminates shall be prorated based on the portion of the tax year that this lease is in effect. 7.5 New Charges or Fees. If a new charge or fee relating to the ownership or use of the Premises or the receipt of rental therefrom or in lieu of property taxes is assessed or imposed,then,to the extent permitted by law,Tenant shall pay such charge or fee. Tenant, however,shall have no obligation to pay any income, profits,or franchise tax levied on the net income derived by Landlord from this lease. 7. 6 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)charges for fuel,water, gas,electricity,sewage disposal, power,refrigeration,air conditioning,telephone,and janitorial services. If any utility services are provided by or through Landlord,charges to Tenant shall be comparable with prevailing rates for comparable services. If the charges are not separately metered or stated, Landlord shall apportion the charges on an equitable basis, and Tenant shall pay its apportioned share on demand. Section 8. Damage and Destruction 8.1 Partial Damage. If the Premises are partly damaged and Section 8. 2 does not apply, the Premises shall be repaired by Landlord at Landlord's expense. Repairs shall be accomplished with all reasonable dispatch subject to interruptions and delays from labor disputes and matters beyond the control of Landlord and shall be performed in accordance with the provisions of Section 4. 8.2 Destruction. If the Premises are destroyed or damaged such that the cost of repair exceeds 25%of the value of the structure before the damage,either party may elect to terminate the lease as of the date of the damage or destruction by notice given to the other in writing not more than 45 days following the date of damage. In such event all rights and obligations of the parties shall cease as of the date of termination,and Tenant shall be entitled to the reimbursement of any prepaid amounts paid by Tenant and attributable to the anticipated term. If neither party elects to terminate, Landlord shall proceed to restore the Premises to substantially the same form as prior to the damage or destruction. Work shall be commenced as soon as reasonably possible and thereafter shall proceed without interruption except for work stoppages on account of labor disputes and matters beyond Landlord's 00023566:1} C####-Commercial Lease Agreement:[Tenant Name] Resolution No.2022-14Attachment 2 Page 10 of 18 Exhibit A, Page 9 of 16 reasonable control. 8.3 Rent Abatement. Rent shall be abated during the repair of any damage to the extent the premises are untenantable,except that there shall be no rent abatement where the damage occurred as the result of the fault of Tenant. Section 9. Eminent Domain 9.1 Partial Taking. If a portion of the Premises is condemned and Section 9.2 does not apply,the lease shall continue on the following terms: a) 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. b) Landlord shall proceed as soon as reasonably possible to make such repairs and alterations to the Premises as are necessary to restore the remaining Premises to a condition as comparable as reasonably practicable to that existing at the time of the condemnation. c) After the date on which title vests in the condemning authority or an earlier date on which alterations or repairs are commenced by Landlord to restore the balance of the Premises in anticipation of taking,the rent shall be reduced in proportion to the reduction in value of the Premises as an economic unit on account of the partial taking. 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. 9.3 City Eminent Domain. Nothing in this Lease shall preclude the City of Springfield from exercising its power of eminent domain to acquire the interest of Tenant in this Lease. Section 10. Liability and Indemnity 10.1 Liens. Except with respect to activities for which Landlord is responsible,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 00023566:1} C####-Commercial Lease Agreement:[Tenant Name] Resolution No.2022-14Attachment 2 Page 11 of 18 Exhibit A, Page 10 of 16 demand. Such action by Landlord shall not constitute a waiver of any right or remedy which Landlord may have on account of Tenant's default. 10.2 Indemnification. 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 damage caused by third parties,or by any condition of the Premises except to the extent caused by Landlord's 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,whose A.M. Best rating is A-or better,at Tenant's cost: Commercial General Liability Insurance(occurrence version) in a responsible company, with limits of not less than $2,000,000 per single claimant per occurrence and$3,000,000 in the aggregate. Such insurance shall 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. A Certificate evidencing such insurance and bearing endorsement requiring 30 days written notice to Landlord prior to any material change or cancellation shall be furnished to Landlord prior to Tenant's occupancy of the Premises. Landlord's liability insurance shall be excess of and not contributing with Tenant's liability coverage. Tenant understands that Landlord is a public entity subject to the requirements of the Oregon Governmental Tort Claims Act, ORS 30.260 et seq. In the event that Landlord's financial obligations or liabilities are modified by any amendment to the liability limits imposed by the Oregon Governmental Tort Claims Act,Tenant agrees that the limits regarding liability insurance set forth in this Section 10. 3 will be modified to conform to such limits. Tenant and Landlord shall sign an amendment to this lease incorporating such modification. All limits required by this Section 10.3 may be satisfied by a combination of Comprehensive General Liability and Excess Liability policies. 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. If Tenant is a corporation or partnership,this provision shall apply to any transfer of a majority voting interest in stock or partnership interest of Tenant. No consent in one instance shall prevent the provision from applying to a subsequent instance. Landlord shall consent to a transaction covered by this provision when withholding such consent would be unreasonable in the circumstances. 00023566:1} C####-Commercial Lease Agreement:[Tenant Name] Resolution No.2022-14Attachment 2 Page 12 of 18 Exhibit A, Page 11 of 16 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. If Tenant defaults in the payment of rent due and payable by Tenant and such default continues for 10 days after Landlord has given Tenant notice specifying the same; provided,however, during any 12 month period,Tenant shall be entitled to only 2 notices as set forth in this section and any subsequent failure to pay rent when due and payable shall be a default without requirement of notice. 12.2 Default in Other Covenants. Failure of Tenant to comply with any term or 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 is of such a nature that 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. 12.3 Insolvency. Insolvency of Tenant; an assignment by Tenant for the benefit of creditors; the filing by Tenant of a voluntary petition in bankruptcy; an adjudication that Tenant is bankrupt or the appointment of a receiver of the properties of Tenant; the filing of any involuntary petition of bankruptcy and failure of Tenant to secure a dismissal of the petition within 30 days after filing; attachment of or the levying of execution on the leasehold interest and failure of Tenant to secure discharge of the attachment or release of the levy of execution within 10 days shall constitute a default. If Tenant consists of two or more individuals or business entities,the events of default specified in this Section shall apply to each individual unless within 10 days after an event of default occurs,the remaining individuals produce evidence satisfactory to Landlord that they have unconditionally acquired the interest of the one causing the default. Section 13. Remedies on Default 13.1 Termination. In the event of a default 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 00023566:1} C####-Commercial Lease Agreement:[Tenant Name] Resolution No.2022-14Attachment 2 Page 13 of 18 Exhibit A, Page 12 of 16 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 any 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: a) The loss of rental from the date of default until a new tenant is,or with the exercise of reasonable efforts could have been,secured and paying out. b) 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 or repair costs,attorney fees,court costs, broker commissions,and advertising costs. c) Any excess of the value of the rent and 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 of trial 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 trial. 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 damages subsequently accruing. 13.5 Landlord's Right to Cure Defaults. If Tenant fails to perform any obligation under this lease, Landlord shall have the 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 under applicable law. 00023566:1} C####-Commercial Lease Agreement:[Tenant Name] Resolution No.2022-14Attachment 2 Page 14 of 18 Exhibit A, Page 13 of 16 Section 14. Surrender at Expiration 14.1 Condition of Premises. Upon expiration of the lease term or earlier termination on account of default,Tenant shall deliver all keys to Landlord and surrender the Premises in first-class condition and broom clean. Alterations constructed by Tenant with permission from Landlord 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 Tenant is responsible shall be completed to the latest practical date prior to such surrender. Tenant's obligations under this section shall be subordinate to the provisions of Section 8 relating to destruction. 14.2 Fixtures. All fixtures placed upon the Premises during the term, other than Tenant's trade fixtures,shall,at Landlord's option,become the property of Landlord. If Landlord so elects,Tenant shall remove any or all fixtures that would otherwise remain the property of Landlord,and shall repair any physical damage resulting from the removal. If Tenant fails to remove such fixtures, Landlord may do so and charge the cost to Tenant with interest at the legal rate from the date of expenditure. a) Prior to expiration or other termination of the lease term Tenant shall remove all furnishings,furniture,and trade fixtures that remain its property. 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 legal rate on all such expenses from the date of expenditure by Landlord. 14.3 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 renewal,or to eject Tenant from the Premises and recover damages caused by wrongful holdover. Failure of Tenant to remove fixtures,furniture,furnishings, or trade fixtures 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 00023566:1} C####-Commercial Lease Agreement:[Tenant Name] Resolution No.2022-14Attachment 2 Page 15 of 18 Exhibit A, Page 14 of 16 performance of the same provision in the future or of any other provision. 15.2 Attorney Fees. 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. 15.3 Notices. Any notice required or permitted under this lease shall be given when actually delivered or 48 hours after deposited in United States mail as certified mail to the following address,or to such other address as specified by that party in writing: To Landlord:City Manager's Office City of Springfield 225 Fifth Street Springfield,OR 97477 Phone: 541.726.3700 To Tenant: Tenant Name] Tenant Mailing Address] PH: ###-###-#### EMAIL: @ 15.4 Succession. Subject to the above-stated limitations on transfer 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,to make necessary repairs to the building or to the Premises,or 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 Charaes. 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 ten days after it is due, Landlord may elect to impose a late charge of five cents per dollar of the overdue payment to reimburse Landlord for the costs of 00023566:1} C####-Commercial Lease Agreement:[Tenant Name] Resolution No.2022-14Attachment 2 Page 16 of 18 Exhibit A, Page 15 of 16 collecting the overdue 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's default,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 State of Oregon. 15.10 Assignment/Sublet. This Lease will not be assigned, subleased,or otherwise transferred except with the consent of Landlord,which consent may be granted or denied in Landlord's sole discretion. Any transfer of an ownership interest in Tenant of fifty percent(50%)or more will be deemed an assignment subject to this Section 15.10. This Lease may be assigned by Landlord without the consent of Tenant. 15.11 Soil/Waste. Tenant will not store,treat,deposit, place,or dispose of treated or contaminated soil, industry by-products,or any other form of waste on the Property or Premises,without the prior written consent of Landlord,which consent may be granted or denied in Landlord's sole discretion. 15.12 Landlord Consent or Action. In the event this Lease is silent on the standard for any consent,approval,determination,or similar discretionary action,the standard is the sole discretion of Landlord, rather than any standard of implied good faith or reasonableness. If Tenant requests Landlord's consent or approval under any provision of the Lease and Landlord fails or refused to give the consent or approval,Tenant will not be entitled to any damages as a result of the failure or refusal,whether or not unreasonable. In the event Landlord has expressly agreed, in writing, not to act unreasonably in withholding its consent or may not unreasonably withhold its consent as a matter of law, and Landlord has, in fact,acted unreasonably in either of those instances,Tenant's sole remedy will be an action for specific performance or injunction. Whenever consent,approval,or direction by Landlord is required under the terms contained herein,all such consent,approval,or direction must be received, in writing, from the Property Management Coordinator of Landlord. 15.13 Subordination. This Lease is subordinate to any ground lease, mortgage,deed of trust,or other hypothecation or security device(collectively, "Security Device"), now or hereafter placed on the Property,to any and all advances made on the security thereof,and to all renewals, modifications,and extensions thereof. Tenant agrees that the holders of any Security Devices(in this Lease together referred to as"Lender") have no liability or obligation to perform any of the obligations of Landlord under this Lease. Tenant consents to any and all future mortgages or encumbrances which Landlord may place on the premises. 00023566:1} C####-Commercial Lease Agreement:[Tenant Name] Resolution No.2022-14Attachment 2 Page 17 of 18 Exhibit A, Page 16 of 16 15.14 Signage. Subject to the consent of Landlord,Tenant will be permitted to install signage that is in compliance with local sign ordinances. IN WITNESS WHEREOF,the parties have executed this Commercial Lease Agreement to be effective the date first set forth above. Landlord: Tenant: CITY OF SPRINGFIELD Tenant Name] By: Nancy Newton,City Manager By: [Signer name,signer position] GUARANTEE Guarantor, [Name of Guarantor as an individual], unconditionally and irrevocably guarantees the performance by[Tenant name] (Tenant)of each and every obligation by Tenant under the Lease described above. This guarantee shall be continuing and shall terminate only upon the satisfaction by Tenant of each and every one of Tenant's obligations under this Lease in accordance with its terms, including but not limited to payment of the amount due. I, myself,and my heirs,successors and assigns waive notice of acceptance, notice of non-payment, protest and notice of protest with respect to the obligation covered by the Lease. This guarantee shall bind Guarantor jointly and severally and his respective heirs, personal representatives,and assigns. In the event of any action to enforce any of the terms or conditions of this guaranty,the prevailing party or parties shall be entitled to recover from the other party or parties' reasonable attorney fees fixed by the trial court and all appellate courts. GUARANTOR: Name: [ Name of Guarantor as an individual] Date 00023566:1} C####-Commercial Lease Agreement:[Tenant Name] Resolution No.2022-14Attachment 2 Page 18 of 18