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03-009.00 Northwest Christian Schools: City Hall Lease Redwood PlazaSpokane ey Contract No. CO3-6. Approved: Sa..n wary l (a ,aocz COMMERCIAL• LEASE WITHIN CLOCK TOWER PROFESSIONAL BUILDING TIIIS LEASE, made and entered this Al�:/' day of January, 2003, by and between Northwest Christian Schools, a non-profit corporation, whose mailing address is 5104 13. Fernhill ltd., Colbert, WA 99005 hereinafter referred to as 'Lessor; and the City of Spokane Valley, whose mailing address is 11707 East Sprague, Spokane Valley, Washington 99206, hereinafter referred to as Lessee. WITNESSETH: For and in consideration of the mutual promises contained herein, the parties covenant and agree as follows: L LEASED PREMISES. Lessor does hereby demise, let and lease into the Lessee, the following described property or portion of property hereinafter referred to as "Leased Premises": Suites 101, 105 and 106 situated in the West portion and East One - Half of the first floor as shown on Exhibit "A", being part of the Clock Tower Professional Building at Redwood Plaza shown as the building together with the non-exclusive right to use the parking areas in common with the owner, occupants, users and visitors of the building premises, at 11707 Last Sprague Avenue, Spokane Valley, Washington 99206. Suite 101 consisting of approximately 1,924 square feet of net rentable area, Suite 105 consisting of approximately 3,350 square feet of net rentable area, and Suite 106 consisting of 10,666 square feet of net rentable arca. "Total net rentable area is approximately 15,940 square feet. Said building is situated on a portion of the East One -Half of Tract 153 and the West One-l-falf of Tract 154 of SPOKANE VALLEY, in the County of Spokane, State of Washington. Said Premises shall also include the parking lot area located north of the Clock Tower Professional Building that is presently surrounded by a fence, hereinafter "Restricted Parking." 2. TERM. The term of this Lease shall be four (4) years and four (4) months, commencing on November 1, 2002 and ending February 28, 2007. In the event occupancy occurs in the middle of any month, rent for the first month shall be prorated to the first day of the next succeeding month and thereafter, all rental payments shall be due and payable on the first (l st) day of each month. CO3-09 3. RENT. Lessee covenants and agrees to pay to the Lessor at WEB Properties, llic. 140 S. Arthur, Suite 510, Spokane, WA 99202, or to such other place as the Lessor may hereafter designate, monthly rental in the amount of and due and payable on the first (1 st) day of each month as noted. A late fee of five percent (5%) of rental amount will be added should payment not be received by the tenth (10th) day of each month. This is a gross lease and includes all costs for the subject Leased Premises and common areas. Rent for the Leased Premises shall be as follows: A. The rental for the first four (4) months of this Lease shall be at no charge. B. The rental for the twelve (12) month period commencing March 1, 2003 and expiring February 29, 2004 shall be Eighteen Thousand Eight Hundred Ninety Tour and 21/100 Dollars ($18,894.21), per month payable in advance on the first (1st) day of each month. C. The rental for the twelve (12) month period commencing March 1, 2004 and expiring February 28, 2005 shall be Twenty Thousand Eight Hundred Eighty Six and 71/100 Dollars ($20,886.71) per month payable in advance on the first (1 st) day of each month. D. The rental for the twelve (1.2) month period commencing March 1, 2005 and expiring February 28, 2006 shall be Twenty Two Thousand Eight Hundred Seventy Nine and 21/100 Dollars ($22,879.21) per month payable in advance on the first (1 st) day of each month. E. The rental for the twelve (12) month period commencing March 1, 2006 and expiring February 28, 2007 shall be Twenty Four Thousand Fight Hundred Seventy One and 71/100 Dollars ($24,871.71) per month payable in advance on the first (1st) day of each month. F. For the first 12 months of this lease there shall be no charge for the use of the Restricted Parking. Thereafter, if Lessee elects to use the Restricted Parking, Lessee shall pay an additional one hundred dollars ($100.00) per month for use of the Restricted Parking. 4. USE OF PREMISES. The Leased Premises shall be used for commercial business purposes as permitted within a commercial business zone in Spokane County, Washington and all activities incident thereto and for no other purpose without the prior written consent of the Lessor first obtained. Lessee shall not use or allow the use of the Ceased Premises Paemail attacltrnentsTornntercial Luse 3I inal city hall.tloc 2 1 .. in any manner that causes damage to the real property or improveanents, nor shall Lessee use or allow use of the Leased Premises in any manner for any illegal purpose. Lessee shall comply with all governmental rules, orders, regulations, or requirements relating to the use and occupancy of the Leased Premises. 5. RULES AND REGULATIONS. Lessor reserves the right to promulgate such reasonable rules and regulations ("Rules and Regulations") relating to the use of parking areas as it may deem appropriate and for the best interest of the tenants, and Lessee agrees to abide by such rules and to cooperate in the observance 'thereof. Such Rules and Regulations shall be binding upon Lessee upon delivery of a copy thereof to Lessee provided the Rules and Regulations may not change or modify terms or covenants in this Lease. If the terms of the Rules and Regulations contradict any provision of this Lease, the terms of the Lease shall prevail. Said Rules and Regulations may be amended by Lessor from time to time with sixty (60) days' advance notice to Lessee. Any material violation of such rules and regulations by Lessee, its officers, agents, employees or subtenants will constitute a breach of this Lease and entitle the Lessor to claim a default thereunder in the same matter and to the same extent as any other default under the Lease. A copy of the Rules and Regulations, current as of the date of this Lease, is attached hereto as Exhibit "C" and by this reference incorporated herein. 6. REAL ESTATE TAXES. To the extent imposed, the Lessor shall pay all real property taxes due or falling due on said Leased Premises during the term of this Lease. 7. LESSOR TO CONU'LETE ALL LEASEHOLD EMPROVE1V ENTS. The Lessor shall complete all leasehold improvements in a first-class, workmanlike manner substantially in accordance with the plans and specifications which have been displayed to and shall be agreed upon between the parties to this Lease ("Leasehold Improvements"). The preliminary plans and specifications are set forth on Exhibit 13". All alterations, physical additions or improvements in or to the Leased Premises shall, when made, become the property of Lessor and shall be surrendered to Lessor upon termination of the Lease, either by lapse of time or otherwise, provided, however, this clause shall not apply to fixtures, equipment or furniture owned by Lessee and as otherwise provided in Section 18. 8. MAINTENANCE. Lessor shall maintain in good condition, the improvements on the real property, including the parking lot, leased pursuant to this Lease. This shall include any and all maintenance required to keep the improvements on the real property, including the Rkmail aunchmemslCommercial Lcasc 3I final city halLdoc 3 I parking lot, which is the subject matter of this Lease, in the same condition, less normal wear and tear, casualty, condemnation and repairs required to be made by Lessee, as of the date of commencement of this Lease. 9. PARICINTG AND PARKING LOT MAINTENANCE. The Lessor shall keep and maintain the parking lot, landscaping and Restricted Parking in a neat and clean condition and repair at all times including snow removal during the winter season. Lessee agrees that there shall be no vehicles left overnight in the parking lot area by Lessee or any employee of the Lessee in order to prevent interference with the cleaning, maintaining and snow removal of the parking lot area. Lessor shall reserve for exclusive use by Lessee ten (10) parking spaces on the north side of the Clock Tower Professional Building. 10. UTILITIES. The Lessor agrees to pay all charges for light, heat, water, sewer, garbage and all other utilities and services furnished to the Leased Premises except telephone. Lessor agrees to provide janitorial services sufficient to keep said Leased Premises and common area neat, clean and free of garbage and debris at all times. 11. ACCIDENTS AND LIABILITY. A. Neither Lessor nor its agents shall be liable for any injury or damage to persons or property sustained by Lessee or any others, in and above the Leased Premises. Lessee agrees to defend and hold Lessor and its agents harmless from any claim, action and/or judgment for damages to property or injury to person suffered or alleged to be suffered on the Leased Premises by any person, firm or corporation, unless caused by Lessor's negligence. B. Lessor and Lessee each agree to maintain bodily injury and property damage comprehensive public liability insurance on the Leased Premises in the minimum single limit of One Million and 00/100 Dollars ($1,000,000.00) and shall name Lessor as an additional insured. Lessee shall furnish Lessor with a certificate indicating that the insurance policy is in full force and effect and listing Lessor as an additional insured on the policy. C. Lessee shall, at its sole cost and expense, cause to be placed in effect immediately upon coi nmencement of the term of this Lease, and shall maintain in full i.'orce and effect during such term, a fire and extended coverage insurance policy covering all Lessee's improvements, and its futures, equipment, furniture and inventory in the Leased Premises, on a full replacement cost basis (no deductions for depreciation), insuring against risks covered by an extended coverage form policy. f"A mail attaclmuntACommerciA Lease 31,finsl city hall.doc 4 D. Lessor shall cause to be placed in effect immediately upon commencement of the term of this Lease, and shall maintain in full force and effect during such term, a fire and extended coverage insurance policy covering all improvements, structures and their contents in the entire property of which the Leased Premises are a part, but not including Lessee's leasehold improvements, equipment, fixtures, furniture and inventory, on a basis satisfactory to Lessor's permanent lender or the holder of any first lien mortgage or deed of trust on the land and building, insuring against risks covered by an extended coverage form policy. 12. LIENS AND INSOLVENCY. Except as otherwise provided herein, Lessee shall keep the premises free from any liens arising out of any labor performed or materials furnished to, or any obligations incurred by Lessee, and shall hold Lessor harmless against same. In the event Lessee becomes insolvent., bankrupt, or a receiver, assignee or other liquidating officer is appointed for the business of Lessee, Lessor may cancel this Lease at its option. 13. SUBLETTING OR ASSIGNMENT. Except as otherwise provided herein, Lessee may not assign or sublet all or any part of this Lease, without Lessor's prior written consent, which consent will not be unreasonably withheld. 14. ACCESS. Lessor shall have the right to enter the Leased Premises at all reasonable times and upon three (3) days' written notice, except for emergencies for the purpose of inspection or of making repairs, maintenance or alterations, or to show the Leased Premises to prospective tenants sixty (60) days prior to the expiration of the term of this Lease. Lessor shall have the right to place a For Rent sign in connection with the premises for the sixty (60) days prior to the end of the term of this Lease. 15. POSSESSION AIND OWE]' EN.10M.ENT. The Lessee shall be entitled to possession of the Leased Premises as soon as the same are ready for occupancy as hereinabove described and shall be entitled to continued quiet enjoyment of the Leased Premises during all periods under the term of this Lease, provided that the Lessee shall be in good standing and shall have paid all rent reserved under the Lease and performed all covenants agreed to be performed by the Lessee under the term of the Lease. 16. DAMAGE OR DESTRUCTION. In the event the Leased Premised are rendered untenantable in whole or in part by fire, the elements, or other casualty, Lessor may elect at its option, within ten (10) days of the event not to restore or rebuild the premises and shall so notify Lessee, in which event Lessee shall vacate the Leased Premises and this Lease P;kmnil a ittachments%Conmtercial Lease 3I ,final city halLdoc 5 shall be terminated; or in the alternative, Lessor shall notify Lessee within ten (10) days after receiving notice of such casualty that the Lessor will undertake to rebuild or restore the Leased Premises, and that such work can be completed within ninety (90) days from the date of such notice of intent. If Lessor cannot restore or rebuild the Leased Premises within the said ninety (90) days, except for delays which are not the fault of the Lessor, then the Lease may be terminated at the Lessee's option by ten (10) days' written notice to Lessor. During the period that the Leased Premises are not tenantable, rent shall abate in its entirety. 17. SiGNS. The Lessee shall be permitted to have signage in connection with the occupancy of the Leased Premises. All signs or symbols placed by Lessee shall be subject to Lessor's prior written approval, which will not be unreasonably withheld or delayed. All signs shall be non -illuminated and shall be consistent with other signage placed upon the building or on any sign post established for the general use of all tenants within the building or using other building on the property common to the area. Signs shall generally conform to the size and type of sign currently used currently on the exterior of the Clock Tower Professional Building at the Redwood Plaza. At the termination of the Lease, the Lessee shall remove all signs, at Lessee's expense, placed in, on or about the Leased Premises and will repair any damage caused by the removal of said signs. If the Lessee has a sign in a common use sign post or board, Lessee shall place plastic in the sign at the termination of the Lease. 18. ALTERATIONS. Lessee may make alterations, additions and improvements in said Leased Premises, at its sole cost and expense after obtaining prior written consent of Lessor, which such consent will not be unreasonably withheld, and employing a contractor approved by Lessor. Lessor's consent and approval of contractor shall not be required for cosmetic repairs such as painting and carpeting. In the performance of such work, Lessee shall comply with all laws, ordinances, rules and regulations of any applicable public authority, and shall save Lessor harmless from any damage, except for Lessor's negligence. Upon termination of this Lease and upon Lessor's request or with Lessor's approval, Lessee shall remove such improvements and restore the Leased Premises to their original condition, except Lessee shall not be required to remove the leasehold improvements provided for herein under Sections 7 and 38 and Exhibit "B". Any improvements not so removed shall remain in and be surrendered with the Leased Premises as a part thereof. "Trade fixtures may be removed at Lessee's expense, provided that Lessee shall pay for any damage caused by such Paemail attachments%Commucial Lease 3 I final city hall.cloc 6 removal. Nothing contained herein shall prevent or restrict Lessee's right to remove the Dias, related fixtures, sound and electronic system, and cabinets which are installed on the Leased Premises. Upon removal of the above items, Lessee shall repair any damage caused by the removal of the above items, reasonable wear and tear excepted. 19. ADA REOU.IREMENTS. Throughout the term or any extended term of this Lease, Lessee shall be responsible for compliance with 'Title I11 of the Americans with Disabilities Act, 42 U.S.C., Section 1200, et seq. (as amended), as it applies to Lessee's use and occupancy of the Premises. In the event compliance shall be required, all alterations to the Premises shall be accomplished pursuant to Section 18 herein. 20. CONDEMNATION. In the event that any government, or any agency or instrumentality having the power of eminent domain shall, by condemnation or deed in lieu thereof, take title, possession or the right to possession of the Leased Premises or any part thereof, Lessor may, at its option, terminate this Lease as of the date of such taking, and if Lessee is not in default under any of the provisions of this lease on said date, any rental prepaid by Lessee shall, to the extent allocable to any period subsequent to the effective date of the termination, be promptly refunded to Lessee, provided Lessee shall be entitled to seek compensation for any Lessee improvements which are so taken by eminent domain. 21. HAZARDOUS WASTE. Lessor represents and warrants to Lessee that there are no asbestos, asbestos containing material, radon gas, PCB's, lead paint or hazardous, dangerous, regulated toxic wastes, substances or materials, as such tenns are defined or regulated by any applicable laws, rules, regulations or ordinances (collectively, "Hazardous Materials"), in, on, under or about the Leased Premises or the real property in which the Leased Premises are situated. Landlord shall, at :Landlord's sole cost and expense and in compliance with applicable laws, rules, regulations and ordinances, remove any Hazardous Materials discovered by Lessor or Lessee at the Leased Premises during the term of this Lease, unless such Hazardous Materials were caused by or brought to the Leased Premises by Lessee or any party for whom Lessee is legally responsible. Lessor shall indemnify and hold Lessee harmless for all losses, liabilities, claims, damages and demands, including reasonable attorneys' fees and costs litigation, arising out of or in any way connected with the existence of any Hazardous Materials, and for all costs of inspection and removal of such Hazardous Materials. The indemnification and hold harmless provision stated in this Section 21 shall not apply to any Hazardous Materials that were caused or Mcmail atlachmentsWommercial Lcasc 3 [final city hall.doc 7 brought to the Leased Premises by Lessee or any party for whom Lessee is legally responsible. Lessee shall be solely responsible for the removal and clean-up of any Hazardous Materials that were caused or brought to the Leased Premises by Lessee or any party for whom Lessee is legally responsible. 22. COINFIRIMATION BY LESSEE. Lessee agrees, from time to time during the lease term, upon not less than fifteen (15) days' prior written request by the Lessor, to sign and make available to the Lessor, a confirmation stating that the Lease is in full force and effect and wunodified as of the date of the signing of the confirmation. The purpose of such confirmation shall be to entitle the Lessor to provide said confirmation to a mortgagee or prospective mortgagee providing financing for the subject real property and the improvements thereon. 23. EXIUBITS. The exhibits attached to this Lease are made a part hereof and by this reference incorporated herei.n. 24. DEFAULT AND RE-ENTRY. If the Lessee shall fail to keep and perform any of the covenants and agreements herein contained, other than the payment of rent, and such failure continues for thirty (30) days after written notice from Lessor, unless appropriate action has been taken by Lessee in good faith to cure such failure, Lessor may terminate this Lease and re-enter said Leased Premises, or in the alternative, Lessor may, without terminating this Lease, re-enter said Leased Premises, sublet the whole or any part thereof for the account of the Lessee for the balance of the term of this Lease, and Lessee covenants and agrees to pay to Lessor the fair rental value of any deficiency arising from the re -letting of the Leased Premises at a lesser amount than herein agreed. Lessee shall pay such deficiency each month as the amount thereof is ascertained by Lessor, or at the Lessor's option, shall pay the present value (discounted at the rate of seven (7) percent per annum) of the balance of the rent for the remainder of the term of the Lease less the present value (discounted at the same rate) of the fair market value of the Leased Premises for said -period. 25. BREACH OF LEASE. If the Lessee breaches this Lease after written notice and grace periods, then this Lease may be terminated by the Lessor in the following manner. The Lessor shall serve upon the Lessee, by registered or certified mail, at the Lessee's last known address, a notice in writing of the fact of said breach or breaches and a detailed description of said breaches. From and after the mailing of said notice, the Lessee shall have ten (10) days to cure any breach for the nonpayment of rent and thirty (30) days to cure any other breach of the P;%=Hil attachmt iOUlmmacial UP= 31,1inaI city hall.doc 8 Lease. Failure of the Lessee to remedy said breaches within said period shall result in Lessee's total forfeiture of all its right, title and interest under this Lease, and the Lessor shall have the right to enter said premises and remove the Lessee and her property therefrom, take immediate possession for the purpose of protecting said property and cancel this Lease in its entirety and re - let the Leased Premises. In all cases of such forfeiture, Lessor shall make a good -faith effort to mitigate its damages. Lessee shall be liable only for reasonable deficiencies, which do not exceed the fair market value of rent resulting from re -letting. 26. REMOVAL OF PROPERTY. In the event Lessor lawfully re-enters the Leased Premises as provided herein, Lessor shall have the obligation to remove all of the personal property located therein and to place such property in storage at the expense and risk of Lessee. 27. SUBROGATfNTG WAIVER. Lessor and Lessee each releases and relieves the other and waives its entire right of recovery against the other for loss or damage arising out of, or incident to, all perils described in the fire and extended coverage insurance policy approved for use in the State of Washington, which occurs in, on or about the Leased Premises, whether due to the negligence of either party, their agents or employees or otherwise. 28. SUBORDINATION, Except as otherwise provided herein, Lessee agrees that this Lease shall be subordinate to any mortgages or deeds of trust placed on the property provided that in the event of foreclosure, if Lessee is not then in default and agrees to attorn to the mortgagee or beneficiary under deed of trust, or purchaser at a foreclosure sale, such mortgagee or beneficiary or purchaser shall recognize Lessee's right of possession for the full term of this Lease. Lessor agrees to use Lessor's best efforts to obtain allon-Disturbance Agreement from any mortgagee, beneficiary or purchaser. 29. NO WAIVER OF COVENANTS. Any waiver by either party of any breach hereof by the other shall not be considered a waiver of any future similar breach. 30. ENTIRE AGREEMENT. This Lease contains all the agreements between the parties and no modifications shall be effective except by written instrument, signed by both parties. 31. SURRENDER OF PREMISES. Lessee agrees, upon termination of this Lease, to peacefully quit and surrender the Leased Premises to Lessor without notice, to leave the Leased Premises neat and clean, well maintained, in good condition, normal wear and tear excepted, and to deliver all keys to the Leased Premises to Lessor. P:lemail attachmentACcuunercial Lease 31,final city hall_doc 9 32. HOLDING OVER. If Lessee, with the implied or express consent of Lessor, shall hold over after the expiration of the term of this Lease, Lessee shall remain bound by all the covenants and agreements herein, except that the tenancy shall be from month to month and monthly rent shall be otherwise agreed upon. 33. BINDING ON HFiRS, SUCCESSORS AND ASSIGNS. This Lease shall be binding upon the heirs, executors, administrators, successors and assigns of both parties hereto, except as hereinabove provided. This Section 33 shall not constitute a consent to assignment on the part of i.,essor. 34. NOTICE. Any notice required or allowed to be given by either party to the other shall be deposited in the United States mail, registered or certified, return receipt requested, postage prepaid, addressed to Lessor or to the Lessee at their addresses stated below, or at such other address as either party may designate to the other by notice given as herein provided. Lessor at: Northwest Christian Schools C/O WEB Properties Inc. 140 S. Arthur Suite 510 Spokane, WA 99202 Lessee at: City of Spokane Valley Attn: City Manager 11707 E. Sprague Suite 106 Spokane Valley, WA 99206 35. NON-SMOKING BUILDING POLICY. It is agreed between Lessor and Lessee the Clock Tower Professional Building is a smoke-free office complex. There is to be no smoking at any time inside of the office building. Smoking is not permitted near any exterior entrance door to the Clock Tower Professional Building. If smoking within or outside this complex becomes a problem, the Lessor has the right to cancel this Lease pursuant to Section 25 herein. 36. FRONT DOOR SECURITY. For the safety of all tenants and the janitor all exterior doors must be locked after 7:00p,m. Monday through Friday. On the weekends all doors must be locked at the time of entering and at the time of exiting. Notwithstanding the above, Lessor recognizes that the City may occupy and use the Leased Premises after the above hours for meetings and other City activities. The parties shall make arrangements that permit the City I'aemail attaehmentslCommucial Lease i I final city hall.doc 10 to unlock exterior doors after 7:00 p.m. Monday through Friday and to use the Leased Premises on Saturdays for the purpose of engaging in City business. 37. TEME OF ESSENCE. Time is of the essence in all provisions of this Lease. 38. IMPROVEMEINTS. Lessor shall complete, at I-essee's sole cost, those improvements as noted in Exhibit "B". The rental amount includes an estimate of the costs noted in Exhibit "B" (except for Suite 105) plus a Construction Management Fee of five percent (5%). The total actual cost of Leasehold improvements plus an eight percent (8%) annual interest rate thereon will be amortized over 48 months commencing March 1, 2003. Should the actual amounts paid for improvements be less than those costs outlined in Exhibit "B", the rent shall be adjusted accordingly. Noted costs as outlined in Exhibit "B" are based upon current building standard improvement materials. Should changes be made to the building standard improvement materials that increase the cost of Exhibit "B", the rents shall be adjusted accordingly. Upon execution of this Lease, the Leasehold Improvements shown on Exhibit "B" and as otherwise agreed shall be immediately commenced. 39. OPTION TO EXPAND. During the lease term, Lessor shall provide Lessee the option to expand into any available space at the then current lease rate and remaining term the Lessee is obligated. 40. FURNITURE. During the lease term and at no additional cost to Lessee, Lessee is allowed the use of approximately 22 cubicles, 1 reception cubicle and all seating available of Technion furniture currently in Suites 101 and 106. In addition, Lessee shall be given the use of all other available furniture as needed on an as -available basis. 4.1. RENT DEFERRMENT. Lessee is hereby allowed to defer payment of rent for a period of five (5) months beginning March 1, 2003 to July 31, 2003, with deferred and current rent due by August 10, 2003. Late charges shall only apply if said rent is not paid by August 10, 2003. 42. ARBITRATION. In the event of a disagreement arising under this Lease, all matters shall be submitted to arbitration as follows: A. The party seeking arbitration shall submit, in writing, to the other party, a statement of the issue(s) to be arbitrated and shall designate a party to act as arbitrator on behalf of the party seeking arbitration. The responding party shall supply a statement of any counter or additional issues) to be arbitrated and shall nominate an arbitrator to act for the responding Paemail attachmeotAConunercial Lease 31,Final city halLdoc 11 party. This process shall be accomplished within fourteen (14) days after the party seeking arbitration has deposited in the United States mail, postage prepaid, the initial notice of intent to arbitrate, addressed to the other party at the address hereinabove shown. 13. The two (2) arbitrators selected shall immediately select a third arbitrator. The arbitrators thus convened shall, within a time established by a majority vote of the arbitrators, conduct a hearing on the issues submitted to them and render a decision on each issue, in writing, to each of the parties to the dispute. Any decision as to procedure or substance made by a majority of: the arbitration panel shall be binding. A decision by a majority of the arbitrators on any issues submitted shall be the decision of the arbitration panel as to that issue. The arbitrators shall have authority to award costs and attorneys' fees to either party in accordance with the merits and good faith of the position asserted by the parties. Said final decision of the arbitration may be submitted to the Spokane County Superior Court to be entered in the form of a judgment therein. C. In lieu of appointing three (3) arbitrators in the manner set forth above, the parties may, by written agreement, designate a single arbitrator. D. Except as provided herein, the arbitration proceedings shall be conducted in accordance with the rules of the American Arbitration Association and the statutes of the State of Washington pertaining to binding arbitration. IN WITNESS WHEREOF, the parties hereto have executed this instrument at Spokane Valley, Washington, on the day and year first above written. LESSOR: NORTHWE T CHRISTIAN SCHOOLS By: Its: r;,Z By: It: V"c Gka yw4+j., Fb00bN-00&) Q(AJ L LESSEE: CITY OF SPOKAN ALLEY By: LE 1 ALTON Its: Interim City Manager P.%crosiI attachments%Commercial Lease 31,fitin] city hal Woc 12 STATE OF WASHINGTON ) ss. County of Spokane ) I certify that I know or have satisfactory evidence that ik the person who appeared before me, and said personeackno wl edged thatiho{signed this instrument, on oath stated that iheI was authorized to execute tlhe„ nrit�umcnt and acknowledged it as the of Northwest Christian Schoolrrl Nthe free and voluntary act of such party for the uses and purposes mentioned in the instrument. DATED this cQ94'day of January, 2003. 0; 7 r r t STATE r; . STATE OF WA�K]NGTON ) ) ss. County of Spokane ) Print Name: A.GLlAm4& NOTARY PUBLIC in and for the State of Washington, residing at MyCommission expires: 1-616610q I certify that I know or have satisfactory evidence that Lee Walton is the person who appeared before me, and said person acknowledged that he signed this instrument, on oath stated that he was authorized to execute the instrument and acknowledged it as the Interim City Manager of the City of Spokane Valley, to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. DATED thisday of January, 2003. Print Name: i?tt k /7'14,/ler NOTARY PUBLIC in and for the State of j ' Washington, residing at LQ lee Fi r eP Park, My Commission expires: /d / S /D-73 PAcmail attachnintslCommucial Leasc 31,6nal city hall.duc 13 EXHIBIT "A" Redwood Plaza/Clocker Suite 101 1,924 Rentable Square Feet EXHIBIT "A" CLOCKTOWER BUILDINGIREDWOOD PLAZA SUITE 106 FIRST FLOOR 109666 SQ. FT. EXHIBIT "B" KOFN&E- , INTC P_O. BOX 14721 SPOKANE, WA. 99214 (509)'839-2749 FAX (509) 838-2586 ., NAME/ADDRESS d 1411 J. t\rmtir 3URU IJ IV Spokane WA 99202 ITEM L'2 I .1 0.3 10.0 3.16 3.55 6.1 9.8 9.4 6.4 6.2 9.6 100 300.1 DESCRIPTION Demoltion Demising walls patch & rep-.ur Floor Preparation Ceiling Rcpair Electrical & Lighting HVAC Interior walls PaiaUng I&M Baseboard Cabinetry Doors & Trim & finish work Floor covering repair Profit & Overbead Plan check and permit fees WSST Thank you for your business. Ed wC!z?-:Z0 ME ET 'upl P.O. NO. TERMS City of Spoken Val - QTY ` COST j .630.00 165.00 40.00 315.00 1,370.00 440.00 840.00 5,838.00 44.00 9,877.00 ?85.00 175.00 2,438.00 460.00 8- two I Estimate DATE ESTIMATF_ NO. 1/13/2003 111 PROJECT Rick TOTAL 630 -OOT 165.00T 40.00T 315.00T 1,570.00T 440.00T 840.00T 5,838.00T 44.00T 9.877.00T 385.00T 175.00T 7,438,90T 460.00 1,843.32 TOTAL 525.06032 98SZBE1360S : 'ON EJOI-Icl :)N1 -11-113WAD i S3HS I N I d 3:)dId IST : W02ld PM ENTRY 9 NFN C:t11E i a'Nr A IONP t' % 76' HICN 1 —NCw CJRK.T TRF,CaIa 17'•6' . J' a tr• MCI / CONF. ADJ re:N will 6 1' D7(P Rl/1Dlt •NN; s 00w, I ay. 1 p II�mnla{ r.! oFPice rCR HLw d'. �IQ/ICM! will rrn LT' IEN OM'&. OFFICE +qT�A THE ENURE SUTE TO 6t DtPuvrzD. !. OV1110ML UWRKC, OIL Of RCW%D m $CME "WA!. T. e%6TINL rtxwlM; To REM.w, PATCH TiOOP" wtm .40 [AE FEYDrED. II !%6ML RaOFWs Is OAwGTD 6Y CONSSTTLLLtCpmu RCRAM. A. TO r0.clDfalrxE?1'Ew LOCal rats, Nt0.'6 rur lecD 6' nfif - L' #ACC G T r s Cl"1E%p14R LOCATIOK. THESE w� e• 1 a:m G�ix NGF 2 N CUTCRE1S1-0.0 wa'N. TIILSS J. IRArMUCC CrAIN6 TTsA 6 0070 CGWOAM TOWN 0 FLOOR PLAN EXHIBIT "B" KM EBL INC P.O. BOX 14721 SPOKANE, W.A. 99214 (509) 838-2749 FAX (509) 838-2586 NAME/ADDRESS Web Properties 140 S. Arthur Suitc 4510 Spokane WA 99202 l ; Tf /, 0 Estimate DATE ESTIMATE NO. 12/1612002 109 c•+:ssd 1-1v—,zo3 ad w)jS1= : S0 c00Z bi "uef 98SZGFBGOS : 'ON 3NOHd DNI -I fS AON S�3.61 N 1 J 30ti-1d IST : WMA P.O. NO. TERMS Rid. Valley City Chambers i ITEM DESCRIPTION QTY COST PROJECT TOTAL 12 Damltion -� _ 980.00 980.007' 6.1 Dauising walls cut bole for dour 246.00 246.00T 8.8 i:n doors 585.00 585.00T 93 Floor Prcparadon 265.00 265.00T 110 Drapery budget 2.343.00 2343.00T 3.16 Electrical & Lighting 1,000.00 1,000.001' 6.2 Raised platform step and ramp 2,800.00 2,800.00T 9.4 Baseboard 190.00 190.00T 6.4 Cabinetry 9,955.00 9,955.00T 6.2 Display board and projection scr= budget 1,285.00 1,285.00T 9.6 Floor ouvering budget 2,520.110 2,520.00T 100 P1ofit & Overhead 2,217.00 2,217.007 360 Plan chock & Permit 475.00 ,475.00 WSST 8.10% 1,975 �7 Thank you fo your business. -- . ---- _ —._....�...TOTAL _....... ad w)jS1= : S0 c00Z bi "uef 98SZGFBGOS : 'ON 3NOHd DNI -I fS AON S�3.61 N 1 J 30ti-1d IST : WMA EXHIBIT "B" HALLWAY EW DOOR AND FRAME I�II�II frll I I�Iltli� l� I�il�llrl I�Iltll�l i �Iirll— I�Ilrll�ll�ll�ll�ll�ll�l ILII, i�ll�lirl ISI �Il�llrl� Ili �I .0 -armI ill l�litll�ll�l l Ili I�II�II�II� I��'lir Ili Iirll� LECTERN PRESS EXHIBIT �— DISPLAY BOARD ~ RECOR ING ST. SECRETARY PERMANENT EXHIBIT SPACE RAM PP RAISED PLATFORM +14" Suite 101 - COUNCIL CHAMBERS 20' 12' 8' 4' 1' 0 Clocktower Bldg. �■ o •••� WEB PROPERTIES 3E desi9n9roup REDWOOD PLAZA SttilYrttititiT�lti'iL'��r�?tititi1�111titil1111 11707 E. SPRAGUE SPOKANE, WA 99206 SUITE 101 Clocktower Bldg. 3 J PROJECTION SCREEN PERMANENT EXHIBIT SPACE NEW DRAPERY POW= no.: cc11 �l ■ s-'et uo, /� 1 or a.te1 UA7.02 oaan er: It CRt o or: od EXHIBIT "C" RULES AND REGULATIONS 1. Lettering upon the directory board and the doors as required by Tenant shall be subject to Lessor's reasonable approval, and shall be made by the sign company approved by Lessor. The cost of the directory board and one (1) door sign shall be borne by Lessor but all other lettering shall be paid by 'Tenant. The directories of the Clock Tower Professional Building (hereinafter "Building") will be provided exclusively for the display of the name and location of tenants and Lessor reserves the right to exclude any other names therefrom. 2. No additional locks shall be placed upon any doors of Premises, and 'Tenant agrees not to have any duplicate keys made without the consent of Lessor. If more than two keys for any door lock are desired, such additional keys shall be paid for by Tenant. Upon termination of this Lease, Tenant shall surrender all keys. 3. Lessor shall have the right to limit the weight and size and to designate the position of all safes and other heavy property brought into the building. Such furniture, freight, equipment, safes and other heavy property shall be moved in or out of the Building only at the times and in the manner permitted by Lessor. Lessor will not be responsible for loss of or damage to any of the items above referred to, and all damage done to Premises or the Building or property by moving or maintaining any of such items shall be repaired at the expense of Tenant. Any merchandise not capable of being carried by hand shall utilize hand trucks equipped with rubber tires and rubber side guards and shall only enter the building from the north entrance. 4. The entrances, corridors, stairways and elevators shall not be obstructed by Tenant, or used for any purpose other than ingress or egress to and from the Premises. Tenant shall not bring into or keep any animal (service animals excepted), or any bicycle or other type of vehicle within the Building. 5. Tenant shall not disturb other occupants of the Building by making any undue or unseemly noise, or otherwise, nor shall Tenant allow objectionable odors to disseminate into the Building; common areas or the Building HVAC system. Tenant shall not, without Lessor's written consent, install or operate in or upon the Premises any machine or machinery causing noise or vibration perceptible outside the Premises, electric heater, stove, or machinery of any kind or carry on any mechanical business thereon, or keep or use thereon oil, burning fluids, camphene, kerosene, naphtha, gasoline, or other combustible materials. No explosives shall be brought into the building. 6. Tenant shall not mark, drive nails, screw or drill into woodwork or plaster, or in any way deface the Building, the Premises, or any part thereof, or fixtures therein; except that pictures and similar decorations may be hung by means approved by Lessor. The expense of remedying any breakage, damage or stoppage resulting from a violation of this rule shall be borne by Tenant. Mcmail attacLments\Cowmercial Lease 31,final city hall.doc 7. The requests -of tenants will be attended to only upon application at the office of the building. Building employees shall not perform any work or do anything outside of their regular duties, except on issuance of special instructions from the office of the Building. If the Building employees are made available for the assistance of any tenants, Lessor shall be paid for their services by such tenants at reasonable hourly rates. No Building employee will admit any person (Tenant or otherwise) into any office without specific instructions from the office of the Building. 8. Lessor reserves the right to close and keep locked all entrance and exit doors of the Building on Sunday and legal holidays and between the hours of 7:00 p.m. of any day and 7:00 a.m. of the following day and during such further hours as Lessor may deem advisable for the adequate protection of the Building and the property of the tenants. 9. Lessor assumes no responsibility for and shall not be liable for any damage resulting from any error in regard to any identification of Tenant or its employees. 10. Lessor shall, at its cost and expense, operate the air conditioning system from 7:00 a.m. until 7:00 p.m, on business days, except on Saturdays, when the hours shall be from 8:00 a.m. until 1:00 p.m. 11. Tenant shall exercise care and caution to insure that all water faucets or water apparatus, electricity and gas are carefully and entirely shut off before Tenant or its employees leave the Building, so as to prevent waste or damage. Tenant shall be responsible for any damage to the Premises or the Building or property and for all damage or injuries sustained by other tenants or occupants of the Building arising from "tenant's failure to observe this rule, except if such damage or injury is caused by Lessor or Lessor's agents including but not limited to the janitors retained by Lessor. 12. Lessor reserves the right to exclude or expel from the Building any person who, in the judgment of Lessor, is under the influence of liquor or drugs, or who shall in any manner, do any act in violation of any of the rules and regulations of the Building. 13. Lessor reserves the right to make such other and further reasonable regulations as in its judgment may from time to time be needed or desirable for the safety, care and cleanliness of the Premises or the Building or property and the preservation of good order therein. R;Ncmail attachmentsTanmcrial Lease 3l Anal city halLdoc