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05-062.00 Northwest Christian Schools City Hall Lease Ext~. :I~LASE I•;XTCNSION & LXPAi~'SION AC I7LLlVI.CNT TL•11S AGIZLEMLN'I' rnadc this 15~' clay o f. March, 2005, by and between CITY (,7F SPOKAl~'C VALLI~Y, whose mailing address, is l 1707 Fast Sprague, Spitkxne Valley, 1Vashington 99206, (herei.natler referred to as "Losses"), xnd NOIt'fl-I1~1'1;ST CI-IR]$TIAN SCI-IOOI..S, a nonprofit corporation.; (hcrcinallcr rslsrred to as "l.,essor"); WHEREAS, The City Of Spoksutc Valley, xs Lessee, and Northwest Christian Schools , as Lessor, entered into x Lease Agreements for Suites 101, 105, 10G as noted below, a copy of which is attached hereto as L"ahibit "A;' and Wt-II:REAS, Ure term of the Lease expires on Febntary 28°i, 2007. 1~V1-Il:RL:AS, LcsseL desires to expand current premises an additional 1,015 square feet of Suite 104, xnd 2,300 square feet of Suite !s Warehouse for a Dive (5) Year term on tits same terms surd conditions set forth in said li:ase, as xntcndcd herein. W1-I1~REnS, The Lessee desires to continue said leytse 1'or an additional Three (3) Year bsyontl the end of its current term under the saute terms and conditions set forth in said lease, as amended herein. N01V, 'I'HEIZEFORE, fur xnd in consideration of the recitations set litrlh; the terms and provisions herein contsincd, xnd the mutual benefits to be derived here from, the parties do hereby contract, covenant and agree as follows: L Extension of Lease. The Lcass, attached hereto xs Ext-ibit "A" xnd incorporated herein by relorcuce; is hereby renewed Cctr x Fivs (5) Ycar term, begimting on April I , 2005 and terniinaling nn Murc:h 31", 2010. The Lessee covenants and agrees to comply with all the terms and conditions of said l.,ease, as herein xntcndcd, anti to be bound thereby xnd to hay all rent in the manner therein pntvided. 'l. Premises Lsascd. Lcsscc had leased a lc;dxl of 1S,rI40 square feet within the Clockta~a~cr Building, noted as follows: Suite lOl, (U5, and 106. All as shown on Lxhibit"B" attached hereto. Premise has been changed to add Suite I U4 with I,OI S Square Feet within the Clocktower Building, and 2,300 syuare Fcct Warehouse space located at Building B to xs follows: Lcsscc shall lease a toG31 of 19,255 square feet within the suites noted as follows: Suite I O I, 104, 105, 106, and Suite B warehouse. All as shown ou Lxhibit "B" attached hereto. 3. Amendments to I,easc. [.,essee and Assignee hsrsby agree to amend certain provisions under the Lease as follows: a. Terrt-. The term of ttte lease is extended for a tsnn beginuittg April 1st, 2005 and terminating Marsh 31, 2010, hereinalicr refcrrcd to as Utc "Lcase'1'crrr-". b. ~pxcc. 'I'hc space to be Icascd is cxtcgorircd as olTicc space and storage space. OClice space includes 1 G,955 square feet, and shall be charged at the fallowing monthly rates fur the stated years: First hvelve months $14.75 per syuare foot Second twelve rnonl7ts $ 15.15 per syuare 1'uot 'Third hvelve.months $ 15.65 per sglrare"foot I~ourih hvelve months $ I C,. I S per Syuars fool Fitch twelve months $ I G.7S per syuare t"not '11ts storage space includes 2,3(10 syuare: feet, xnd shill be charged at Utc rate of $4.00 per square fiwt per month. c. fuse Rent. Lessee agrees to pay'1'WGN'l'Y ONE T}-IOUSAND SIX 1-fUNDRLD SIyVEN AND 19/100 DOLLARS ($21,607.19) per mont}r during Urc firs) hvelve (12) month period, then TWENTY TWO TI•IOUSANIa QNE HUN(afZF,.Ia SIV~i\'1`Y `I'1V0 ANt7 36/t0U L70LLARS ($22,172.36) per month for the second hvelve (12) month period, then'1'~1'L"N'I'Y'I':VU'1'IIOUSA;JL) El(:rl I`1' 1•IUNURLn SCVENTY L'aGl-I'1' ANI~ 82/100 170LLAltS ($22,878.$7.) per month for the third hvelve (12) mouth period, then'CWEN'1'Y'1'HLZLL'1'I-LOUSAND hIVL l-IUVDItL'D I;IGI•I'1`1' FIVE; ANS 27/100 ($23,585.27) lire the fourth hvelve (12) month period, tltsrt '1'WI;N'I'Y 'I'1-I IZEH 'I'FI()USANIa SIVI~N I-IUN'17RF;13 "I'WCN"l'Y SI;Y AND 57/l00 DOLLARS ($24,433.02) -for the f fth twelve (12) month period . c. NN~3 Charecs. 1'ropsrty'I'axes, l,ftilities, Mauttenance, Insurance, Administralivc ~l. Contnwn Area Maintenance to be paid by tenant tix storage space only as follows: 2,300 sq. fi. of 92, G72 total CAM sq. tt, or 5.389% of building prsntists. CAM charges are billed quarterly. Inilinls: ~~G~._ ~~~ '~~ ~ ~, - '~. d. Amortized Tenant Improvecncnts. l,cssec will continue to repay remaining tenant i.rnprovement cost from original as staled in original lease (Exhibit A). Original tenant irnproventent cost amounted to $ 154,972.88. Remaining total owed is $74,257.84 to be amortized 1'or sixty (CO) months. Total monthly installments rm-awt[ to $1,237.63 per month. c. Option to Renew, Lessee shall have option to renew this lease tier one (I) addilionrrl three (3) }`ear pcl'lod. ProVlded hp65`eVer Lessee provides [.,essor with 12U days prior written nrttice before lease expiration of Lessees intention to do so. All tcnns and conditions shall remain tyre same wish the exception of rent, which shall be negotiated. Tenant Improvements: Lessor shall provide at Lessors sole cost and discretion, the following tenant improvements: Suite 104: Clean carpets, Paint walls through out the premise, install sound proofing between City Managers office and office in Suite 104. Suite 105: install oversized window u- cu.r't'cut Parks x. Recreation Directors office. Parking Provide expanded fenced parking area adjoining the existing fenced parking area. Conference Room: Reserved conference room every 1•Vednesday morning, Sam to lam. Reserve conference room at Icast three other days eacl- year, with advance reservation. Except its modified herein all other terms and conditions ol'said Lease shall remain in lull force and elrect. ~. Waivers. V]odiGca_l_iun ar Ariter>_dmcnl. No waiver, ntoditicatiun or acnendntent of any term or condition of this Agreement shall be effective unless in writing, and no waiver or indulgence by either party or any deviation by the other party from filll performance of this Agreement shall be a waiver of the right to subsequent: or other full, strict, and timely pcrforcncwce. 4. Merger Clause- This Agreement and the Lc:rse Agrccrttcnt attached as Exhibit A express the full and final purpose and agreement of the parties and will not be qualified, modified or supplerncntcd by course of dealing, usage of trade, ur course of pcrforntance. 5. Cowtterparts. 'I'bis Agreement may be executed in hvo or more parts, each ofwhich shall be deemed an original, but all of which togctlter shall constitute one and the sane icrstrwnent. IN WITNESS WHFItF.,OF, the parties hereto have set their hands this .~.'~,'rtlay of 1%~~ - ~ l~„ 2005. t.tssurc NORTHWEST Cl-IIZlST1AN SCHOOLS i / `~ r ~' ~-. />'~/~ 1 l~I1L~'~G ~~J.~9 r r~~~~il«Id~~. rrs~~ ~+Th'ly~~'hi L~1~'i~~~t~ ~i(I~c~ /L~i~71lr~~j7~iJ I~~ccuted (fin ~~~~`~"~ I•tssr-.13 CI'T'Y OI~ SPOK/1NE VALUY ITS •G~ ,~% '.~= ~% HxcculcJ pn ~l.`~3 r.'~~n ~~t5 !_ 2 Iniliuls• `.,.,_ `~ r ~'~ `~.~ A[7171t1';SS I~OIZ NU"I'1CL'S ANU It~NT NorthwesC Christian Schools, ]nc. C/o W~[3 Yrupcrtics, lnc. P.O. Box 214G9 Spokane, WA 99201 ADDIZC:SS I~dR Nd"1'ICL:S City df Spokane Valley 1 l X07 r-.. Sprague S~t~~ IOG Spokane Valley,l~1'A 9920G ~ i~~~~~,~is• '~ Spokane ~~alley Contract ~ ~ ~ Evo. C03-09 EYLiTBTT A Approved: Sa.~na.nrc~l~o~~~3 CO1vIMERCIAL LEASE WYT1T111 CLOCK TOWER PROFESSIONAL BUILDZNC THIS LEASE, made and entered this ~ day of January, 2003, b}' and between Northwest Christian Schools, anon-profit corporation, whose mailing address is 5104 E. Bcrnhill Rd., 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. WI'IT'ESSETH: For and in consideration of the mutual promises contained herein, the parties covenant and agree as follows: 1. LEASED PREMISES. Lessor does hereby demise, let and lease unto 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 shov~~n 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 East 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 area. 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-Half of Tract 154 of SPOKAI~rE VALLEY, in the Comity of Spokane, State of Washington. Said Premises shall also include the parking lot azea located north of the Clock Tower Professional $uilding that is presently surrounded by a fence, hereinafter "Restricted Parking." 2. TER~~VI. The term of this Lease shall be four (4) years and four (4) months, commencing on 1\'ovember 1, 2002 and ending February 28, 2007. In the event occupancy occurs in the middle of any month, rent for the first month shall be prorated to the first day of the next succeeding month and thereafter, all rental payments shall be due and pa}able on the first (l st) day of each month.. ~~ ~~ ~\ 3. RENT. Lessee covenants and agrees to pay to the Lessor at WF$ Properties, Inc. 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 (1st) 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 fast 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 Four and 21/100 Dollars ($1.8,894.2 ] ), 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 Dollazs ($20,886.71) per month payable in advance on the first (1st) day of each month.. D. The rental for the twelve (12) month period commencing Mazch 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 (lst) 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 Eight 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 fu-st 12 months of this lease there shall be no chazge for the use of the Restricted Parking. Thereafter, if Lessee elects to use the Restricted Pazking, Lessee shall pay an additional one hundred dollars ($100.00) per month for use of the Restricted Pazking. 4. USF OF FRENIISES. The Leased Premises shall be used for commercial business purposes as permitted within a commercial business zone in Spokane County; Washington gild all activities u2cident 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 Leased Premises P;lcmail attschmcnts'1CrJmmcrcinl Lease 31,finnl city hnll.dac Z + F i,n any manner that causes damage to the real ixmPcrtS' or irnpro~+ernents, nor sha11 Lessee rise or a11o use of the Leased PreuiiseS in any manner for an}~ i!l.~ega] purpose, Lessee shall comgl}r v~ith ail gavernrncntal rules, orders, regrilatioz~s, or requirements relating to e use and occupancy of the Leased Premises. ~. 1~CFLE AIY~ ~~iJLATl~7~. Lessor reserves the rigTat to promulgate suc}~ reasonable roles and regulations ~"T~n1es and egulati~ns"} relating to t}~e use ofparking areas as i.t may deem appropriate and for the best interest of fide tenants, and Lessee agrees t0 abide by such rules and to cooperate in the observat7ce 'thereof. Such Pules and Regulations sha11 be bi~diing upon Lessee upon delivery of a copy thereof to Lessee provided the Mules and Regulations may ixot cliange or modify terms or eover~antS i.n this Lease. If the terms of floe uses and 1egulations contradict ar~y provision o~ this Lease, tl~e terms of t1~e r~ea~e shall prevail. Said Rules and Regulations may !~e amended by Lessor from time to time with siixi~ ~~~) days" advance notice to Lessee, Any material violation off' such axles and' regulations b}~ Lessee, its officers, agents, employees or subterLarlts will constitute a breach of this Lease and entitle the Lessor to clai<~a a default thereunder in the sarz7e manner and to the same extent as any other default under the Luse, A. cop~+ o~ the pules antl ReguIa~ians, current as o~ the date of this Lease, is attached hereto as Exhibit "~`~ and by this reference incorporated herein. AL_E'F~i.T"E '1"A~ To the e~ttent unposed, thl~ Lessor slaall pay all real property taxes due or falling due era! said Leased T?zernises durirt~ the term o~'thi<s Lease. 7. .L>E~~R T~ C~14~PL,~T~ ALL LEA.»~~~ IIV1f~'~~l~J~T The Lessor sba11 complete all leasehold improvements in ~ first-class, workmanlike manner substantially in accordance with the plans and specitioations which have. been displayed to and shall be ab eed upon between the parties to this Lease ~"Leaselxold lrnprovcments""}, The preliminary plazfs and specifications are set forth on Exhibit "B"'. All alterations, physical additions or i.n~.grovements in nr to the r,eased Premises sha11, lien made, become the property of Lessor and shall be sunenclered to Lessor upon termination of tlxe Lease, either by lapse of time nr otherwise, provided, however, this clause slZall not apply to fixtures, equipment or furniture owned by Lessee and as otherwise provided in Section 1$. li«. 1A.T~]1xA~. Z,,essor shall rxlainLain in good conditi.~zt, the in}~roveznents ozt the real ~roPerh', including the parking lot; leased puxsuant to this Lease. This shall include any and all mairltenance reo~ui:red to keep the improvements on the real property, including the P~1:.mail aitat]~me~rtslCommercia] L,ea~e 3 I , fins] ciC} ha]]_d~c ~ r~ 1 ~ `~' pazking lot, which is die subject matter of this Lease, in the same condition, less normal wear and teaz, casualty, condemnation and repairs required to be made by Lessee, as of the date of ~ commencement of this Lease. 9. PARI~NNG 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. UTILIT>! ES. 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. ACCIDE>\T'TS ANll 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 andlor 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 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 Lessee's improvements, and its fixtures, 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. P:lemaif attachmentslComrncrcial Lceso 3l,fin~l cily halLrJoc ~ _~ ~J ~ J T). 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, fiirniture 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 .A.I~'Ia INSOLVENCY. Except as otherwise provided herein, L essee 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 grill not be unreasonably w=ithheld. 14. ACCESS. Lessor shall have the right to enter the Leased Premises at all reasonable times and upon three (3) days' v~~ritten 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 AyD QUIET ENJOYMENT. 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. DA.1yIAGE OR DESTRUCTION. In the event the Leased Premised are rendered untenantable i.n whole or in part by fire, the elements, or other casuals}=, 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:kmail a~iachmcntslComm~rcial Lcasc 31,nnal city hall.doc 5 o c shall be trrr~a.nated; or in the alternative, ~,essor sha11 notify Lessee wifi~in teA {i~~ days after receiving notice of such casualty that o Lessor will undertake to rebuild or restore the T~cased Premtscs, and that such work can be cumplete~ within tuner ~~~ days h'vm the date of such notice of intent. If Lessor catxrrot restore or rebuild the I.,eased Premises within the said ninety ~~~~ days, except for delays which are not #17e Fault of the lessor, then the Lease may be terxrxi.nated at the L,cssec's option by ten ~10~ da}Fs" written lpotice tr} Lesser. Ding the period that t1~e Leased Premises are not tenantable, rent shall aba#c i~ xts entirety. 17. 1I~1 The Lessee shall he permitted to have linage in connection with tl~e occupancy of the Leased Premises. All signs or symbols placed by Lessee skra.lk ~e sub~}oct to Lessor's prior written approval, wbach will not be unreasonably withheld ar delayed. All signs sha11 be non-illuminated and ~ha11 be consistent with other sagnage placed upon the building or on any sign past established for the general use ~~ aI1 tenants within the building or using ot3~er bu.iildi.zlg on the property common to the area. Signs shall generally cvnf`orm to the size and type of sign currently used currently on the e~cterior ol`the flock Tower Professions! Building at the Redwood Plaza. .4t the termination of the Lease, the Lessee shall remove all signs, at Lessee's expense, paced in, on or about the Leased premises aril wall repair any damage caused b~F ~e ~ removal al<' said sites, If the Lessee has a sign in a c~omrz7on use sign post or board, Lessee shall place plastic in fine sign at #}71e termination of the Tease, x8. ALTI~ATI~I~1~. Lessee may make alterations, additions and improvements ui said Leased Prert~ises, at its sole cost ar~d expense after obtaining prior written consent of Lessor, which such consent will not be unreasonably withhold, aril employing a contractor approved b Lessor. Lessor's cor~cnt 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 autk~ority, and s17a11 sage Lessor harmless #`i`om any damage, except for Lessor"s negligence. Upon termination of this Lease and upon Lessor's request or with Lessor's approval, Lessee shall removo such improvements and restore the Leased Premises to their original condition, except Lessee shall not be required to remove the leasehold improvements provided for hezein under ectior~s 7 ar~d 3 and Exhibit "B". Any irrtprovements not so removed sha11 remain in and be surrendered with the Leased ~rernise~ as a part thereof. Trade fixtures maybe removed at Lessee's expense, provided that .lessee sha11 pair for and damage caused by such ~;k~rn~il atlachmen~lCaanmeFCiaF !,case 31,final pity hftll,doc 6 ~~ ~~ removal. Nothing contained herein shall prevent or restrict Lessee's right to remove the Dias, related fixtw-es, sound and electronic system, and cabuiets 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. E1.>~A REQUTI2~MENTS. Throughout the term or any extended term of this Lease, Lessee shall be responsible for compliance with Title III 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. CONDEMTTATIOI~'. 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 ea°tent allocable to any period subsequent to the effective date of the ternunation, 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. HA7A.RAOUS WAST7~. 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 terms aze 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 iiRaterials discovered by Lessor or Lessee at the Leased Premises during the term of this Lease, unless such Hazardous iVlaterials were caused by or brought to the Leased Premises by Lessee or any party for whom Lessee is legally responsible. Lessor shall indenuufy and hold Lessee hazn~less for all losses, liabilities, claims, damages and demands, includuig 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 lazardous Materials. The indemnification and hold harmless provision stated in this Section 21 shall not apply to any 7-Iazardous Materials that were caused or ~:~em2il attachnienulCommereial Lease 31,final city hall.doe '] ~_~ T~rougl'it to the Leased premises by Lessee ar any party for whom Lessee is legall}+ reSponsib~c_ .Lessee shalt be solely responsible l:'or the rerrro~al ar~d clean-up of any Ylaza.r~ous latcrials that were caused yr brought #o the 1=,eased Premises b Lessee or an PAY for whom Lessee is legally responsible. ~2~. OI+F)Ei~14'IA'FI~I~ RY LEli~lt~. Lessee agrees, from time to time [luring the lease term, upon nat }ess than ~`zfteen ~~ ~} days" Friar written request b the Lessor, to sign and make available to the Les9ar, a confirmation stating that the Lease is in full farce and ef#`cct and unmodified as o~ the date o~ the sigtv.ng of the confirmation. Tie purpose of such confirmation shall be to entitle th,e Lessor to provide said crxn~`irmatiozt to a mortgagee or prospective mortgagee providing financing for the subject real property and the iznpravements thereon, ~3. EFII~~T~ `~'l7e ~xhiibi:ts attached to this Lease are made ~ gart hereof and by this reference incorporated herein. ~~. DEFiTLT ANA ~-~F lf'the ~,essee shall fail to keep and perform any ~f the covenants and agreements herein contained, other than the payix7.ent ~f rent, and such failure continues far tisi.rty ~34~ days after written notice from Lessor, unless appropriate action has been taken b}~ Lessee in good faith to cure such failure, Lessor ma}~ terzn.inate this Lease and re-enter said Leased premises, or in the alternative, Lessor may, without terminating this Luse, re-enter said Leased Preini:scs, sublet the who}~ or any part thereof for the account of the Lessee for the balance o£ the term of this Lease, and Lessee covenants and agrees to pay to Lessor the fair rental ~alne of any deficiency arising from the rc-letting o~ tie Leased Premises at a lesser ~rnount than herein agreed, Lessee shall pay such deficiency cash mont~7. as the amount thereof iS asccrtair~ed by Lessor, or at the Lessor's option, shall pay the pre~et~t val+~e (discounted at the rate of seven ~ gercen4 per annxnn of the balance of the rent for the reinatn~er of the term of the Lease less the prescmt value ~dis~ounted at the carne rated of the fair market value of the Leased l~rerniseS for said'priod. ~5. l~lt>EH ~F I~EA~. If the Lessee breaches this Lease after written notice and grace periods, then this Lease ruay be terrniz~ateci by the Lessor irx tl~e #`pllowln.g manner, 1'hc Z,esscr shall serve upon the Lessee, b}~ registered or certi~'ied maim, at the Lessee's last known address, a notice in writing of the fact of salt] breach or breaches anal a detailed description o#` said breaches- i~rom and after the mailing of said notice, the Lessee shall have #en {l~) days tv cure any breach for the nonpayinent of rent €usd thirty 30 days to cure any other breach of the 9';4cmaik suachmea~~s3Commercial Luse 3l,fin~] city frall.doc $ Lease. hailure of the Lessee to remedy said breaches within said period shall result in Lessee's total forfeiture of all its right, title and interest wider 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 agood-faith effort to mitigate its damages. Lessen shall be liable only for reasonable deficiencies, which do not exceed the fair market value of rent resulting from re-letting. 26. REMOVA)G. OF PROPERTY. Tn the event Lessor lawfully re-enters the I.,eased 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. SURROGATING 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 V~~ashington, which occws in, on or about the Leased Premises, whether due to the negligence of either party, their agents or employees or otherwise. 28. SUBORllINA'T'~QN. Except as otherwise provided herein, Lessee agrees that this Lease shall be subordinate to any mortgages or deeds of trust placed on the property pro~~ided that in the event of forecloswe, if Lessee is not then in default and agrees to attorn to the mortgagee or beneficiary under deed of trust, or pwchaser at a foreclosure sale, such mortgagee or beneficiary or pwchaser shall recognize Lessee's right of possession for the full term of this Lease. Lessor agrees to use Lessor's best efforts to obtain aNon-Disturbance Agreement from any rnortgagee, beneficiary or purchaser. 29. NO V~'AIVER OF CO~'E~NANTS. Any waiver by either party of any breach hereof by the other shall not be considered a waiver of any futwe similar breach. 30. ENTIRE AGR~EMEiVT. Plus Lease contains all the agreements between the parties and no modifications shall be effective except by v,~ritten instrument, signed by both parties. 31. SiJRIZEI\TDER OF PRENIISES. Lessee agrees, upon termination of this Lease, to peacefully quit and surrender the Leased Premises to Lessor ~~ithout 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:Icrnail allacltmentslCommtrciRl L_'ase 31,finai 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 HEIRS. SUCCUSSORS AI\'D 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 Lessor. 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: I~lorthwest Christian Schools C/O DEB Properties Inc. 140 S. Arthur Suite 510 Spokane, WA 99202 Lessee at: City of Spokane Valley ~ Attn: City Manager 11707 )/. Sprague Suite 1.06 Spokane Valley, VJA 99206 35. >\jON-SMOKING BUILDL~IG 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. kRONT DOOR SECURITY. For the safety of all tenants and the janitor all exterior doors must be locked after 7:OOp.m. 11~Ionday through Friday. On the weekends all doors must be locked at the time of entering and at the time of exiting. ~lotwithstanding 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 r P:lcmail attachmenlslCommercial Lcasc 31,final city hall.doc l0 to unlock exterior doors after 7:00 p.rn. Monday through Friday and to use the Leased Premises on Saturda}~s for the purpose of engaging in City business. 37. TIME OF ESSENCE. Time is of the essence in all provisions of this Lease. 38. L71')CPROVEIVIENTS. Lessor shall complete, at Lessee'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 expaad into any available space at the then current lease rate and remaining term the Lessee is obligated.. 40. EUR~II7'URE. 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 States 101 and 106. In addition, Lessee shall be given the use of all other available furniture as needed on an as-available basis. 41. RENT DEFERRMENT. Lessee is hereby allowed to defer payment of rent for a period of five (~) 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. ARBTTRATIOiV. 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 issue(s) to be arbitrated and shall nominate an arbitrator to act for the responding P:lemail aetachmentslCommcrcia! Lease 31,final city hall.doc 1 1 ~ C_ J party. This process shall be accomplished ~~ithin 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. B. 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 WI~REOF, the parties hereto have executed this instrument at Spokane Valley, Washington, on the day and year first above written. LESSOR: NORTHWE T CI~RLSTIAN SCHOOLS By: ~, Its : G~ ~,~,,, JL- 4~e- ~ ~.,.~(-~t~~ A.~ By: ~w~ LESSEE: CITY OF SPO ALLEY LE ALTON Its: Interim City Manager P:lemail attachmcntslCommercial Lease 31,final city hall.doc l2 STATE OF WASI-ITI~iGTON ) ss. County of Spokane ) ,~~dQ ~~ ~~~ I certify that I know or have satisfactory evidence that~y.-~•:~ ~ -~.~'~ ~i~ the person who appeared before me, and said personcackno~~ledged thatihe~signed this instrument, on oath ivP.rr.. stated that -rho{ authorized to execute the jnstrument and acknowledged it as the C~1'+~LCto.Gw : w4(- 2~ +C..'~ ~Lo;.nclc • lK rt c:iti.:~,..,,.~.,~ of Northwest Christian Schools; to be t~e free and voluntary act of such party for the uses and purposes mentioned in the instrument. DATET) this ~~~zday of January, 2003. _ ~ GALB,pF ~' ~ ~p- ...~ ,,,~ 4~-. ',, ~Q c~• o ~r '- ~ % :~ oy/~~~,oa, n i f ~, ~Q.O .' hZ. r ~~it Srq~, f-~•` STEITE OF WA~FII3~~GTOI~7 ) ss. County of Spokane ) ~ /~ ~~ ~ Print Name: C~u;rt'„~ f:•C~.~l~~~..f/z NOTA.R.Y PUBLIC in and for the State of Washington, residing at ~~f'~..-~~f~ My Commission expires: ~~ ib[.~~~f I certify that I know or have satisfactory evidence that Lee Wahon 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 this,~~S~day of January, 2003. ~~ Print Name: /~'u-j- {~ ~'1 u.~l~r 1\'OTA,RY PiJBLIC in and for the State of ~~ ~~i~ashineton, residing at LQ ~Ce Fe rts~ rCt r~ My Commission expires:_ J4 / 5 ~d ~ P:kmail attacfimentslCommercial Lease 3 E,final city hall,dor 13 EXHIBIT "A" Redwood Plaza/Clocker Suite 101 1,924 Rentable Square Feet EXHIBIT "A" ~. CLOCK'TOV~ER BUILDII`IGIREDVYOOD PLAZA SUITE 106 FIRST FLOOR '~ 0,666 SQ. FT. EDtHIBIT "B" xor-I~r-~, rNC ~ Estimate P.O. BOX 14721 SPOKANE, WA 99214 (S09) X38-2749 FAX (509) 838,2586 NAMEIADDRESS Webb Proms ~. 140 S. Arthur Sufic ~S 10 Spokane 1~'A 99202 w fl:EM DESCRIPTION • Drmofrion _ i.l I?omissssitS walls patch dt rpslr 1.3 Floor Pr~paraaaa 10,0 Celtmg Rcpoir 1.16 Elcabcical 8c LiP~~S 3.55 HVAC 5, 1, IutericII walls 9.8 Pai~g I.~M 9.4 Baseboard 6.4 Cabineuy 6,2 Doors & Tdm c~ frnish work 9.6 F1ooQ arvesin8 repair ! 00 Profis ~ Ov:r'oead 300.1 Plan check and pcauit fees W5ST Th ank you for your bs~~.-ss. P.Q. NO. City of Spokautc Vat... ._ nTY DATE ssTlr~wT~ rlo. 1Ii3n003 111 TERMS COST ?ROJECT Rick TOTAL 630.003' 165.Q4T 40.OOT 315.OOT 1.570.OOT 444.OOT 540.007 5,838.00T 44.OOT 9,877.00T 385.ODT 175.00T 2,438.OOT 4bG.00 1,843.32 630.00 155.00 40.00 315.00 1 570.00 440.00 840.00 5,838,00 44.00 9,877.00 385.00 175.04 2,,438.00 460.OU 8.10°l0 TOTAL ~s,OFn.32 J .. _' £d Wdir~ : irl3 ~0[3Z s:~ 'mil' 9esz8£E360S 'ON ~NOHd ON I 'lI~1Wd071 S~-~5l N I d d~ti ld 1St : W0~ EXHIBIT "8" ~.' n °s a `c m o ^ D / 1 m N 1 9 © II p D N Ipl ! 5 ~ V p " P Y ( 7'C (~ ~ v ~i ~F ~Fi ~F °~Ftl~ ~L1 p ~ 8~5~•~..~ ~ A ~ 4~ I ` ~~q~ ~~ m ~~e~FQ~~~D~~ ~~ ~~~F ,~' 9 ~ 9~3 e a ~ ~ RAC ~ d ~~ ~ ~ YYY a i Q ~ ~ R ~; ~ ~- g i ~ ~ '~ ~j~ ' o ~g = ~~ A ~~~~~ ~ y• ~~ :Ti Fo ~y a r' r c o fi ~ n Z~ ~~ 7 '~ p ~ ~ ~ 7 4 ~~e aX n 7e e r 0 ~ ~ 4 v° ~~ ~• ~~ EXHIBIT "B" KoFI~HI., ~c P. 0. BOX 14'T2 i SPOKANE, WA 99214 (509) $38-2749 FAX (509) 838-2586 NAME !ADDRESS ~_ __._ Web Properties 140 S. Arty Suitt ii510 Spolttutz WA 94202 ~ estimate DATE 3=STIMATE NO. 12rl~notz 149 '~~~:sesJ t-~~e-~ P.O. NO. TERM5 ltidc Vailey City Chambers ITEM DESCRIPTION QTY COST PROJECT TOTAL 2.2 Dattoltian _..., n_!. 980.00 980.OOT 6.1 Demising malls cam, hnlc far dons 246.04 246.OOT g.g ~~ loots 585.00 585.OOT g.3 Floes prop~~ 265.00 265.OOT 110 Drapery bt>d~ 2,343.00 2,343.OOT 3.16 Eloetrica] ~:I.t3ttirxg 1,000.00 1,000.O0T 6.2 Raised platform step and ramp 2,804.00 2,800.OOT ~ 9.4 Based 190.00 190.OOT ~, 6.4 Cabiuctry 9,955.00 9,955.OOT 6.2 Display board aad projection screcn budgct 185.00 1,285.OOT 9.6 Floor ooveria8 bndg~ 2,520.010 2,520.ODT 100 Profit & Ovcdct.ad 2,217.00 2,217.OOT 360 Plan checl: f~ Permit 475.08 475.00 VJSST 8.10°io 1,97527 Thank you for your busincss, ~~70TAL S2G,834_27 ` --- ~~ Zd WdS>= : 60 5=00c bi .u~t 98SZ8~86a5 'ON ~I~EDHd ON I ~-18W~0~1 SUFIS I N I j ~D~d l.ST Wttt~ Q EXHIBIT "B" HALLWAY ~NE-V DOOR AND FRAME I SEATIING ($~2 SEATS) . U~ ~~~~1 ~ I I ~~ ~~ - LECTERN PO EXHIBIT DISPLAY /'~ BOARD STA RECORDING SECRETARY PERMANENT EXHIBIT 1 SPACE RAMP~P RAISED PLATFORM +14" Suite 101 -COUNCIL CHAMBERS io~ u ~ s' a' i~ o } 3 J PROJECTION SCREEN PERMANENT EXHIBIT SPACE NEY! DRAPERY ®o ® Clocktower Bldg. o ~ WEB PROPERTIES SUITE 101 ®O ® REDWOOD PLAZA 3E d e s i g n g r o u p Clocktower Bldg. Sl~til7r~titi1ldti'll~'~T~~ti1~1titilil~titi'~N1f~ 11707 E. SPRAGUE SPOKANE, WA 99206 .R„sQ ~.: o:.u "~" "~ '~ a~tacfl ~r: ttr A 1 1 . u~: ~. ~. EX)~IT "c" RULES A.l\7D REGUL~ITIONS 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 I,,essor. If more than two keys for any door lock are desired, such additional keys shall be paid for by fienant. 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 funuture, 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 dons 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 v~~ithin the Building. ~. 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 azeas or the Building HVAC system. Tenant shall not, without Lessor's v,7itten 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. P:lemail uttachmenislCommsreial I„ease 31.final city hall.dac 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 of,Fce 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 $uilding employee ~~ill 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 x: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. P:lemail attaehmrnslCammercial l,.cnse 31,final city hall.dac