2003, 01-16 Regular Meeting1. CALL TO ORDER
5. ADJOURNMENT
CITY OF SPOKANE VALLEY
CITY COUNCIL AGENDA — REGULAR MEETING
11707 East Sprague Avenue, First Floor
Spokane Valley, Washington
Thursday, January 16, 2003, 7:00 p.m.
2. RECESS TO EXECUTIVE SESSION
Discussion of legal, personnel and real estate matters
3. RECONVENE REGULAR MEETING
4. ACTION ITEMS
A) Motions
1. Agenda Bill No. 2003 -028, Authorize execution of lease with Webb
Properties for City Hall and Council Chamber space
SENT BY: CITY OF UNIVERSITY PLACE;
253 460 2546;
CITY OF SPOKA -NF VALLEY, WA
EXECUTIVE SESSION 1/16/03
Real Property (Precinct Station), Personnel (Chief and Staffing), & Litigation ( ?)
1) IMPORTANCE OF POLICE CONTRACT...
• $11,685,000 vs. $10,000,000? OR $1.7 million /year!
• $1.7 million/year of $30 million General Fund = 6 %!
• Opportunity Cost? (Lakewood vs. University Place...)
2) IMPORTANCE OF PROCESS...
• Respect for City, its Interests and its Governance Rights?
• Win -Win and Continuous improvement?
• Short-Term with Annual Renewals (12 months lead time)?
• Certainty for County (cg. Liberty Lake) and Leverage for City?
• Mid -To -Long Term...Sustainable? Cost- effective?
• Negotiations Staff -to -Staff and not Commission -to- Council?
(Generally surprised and pleased with Sheriff's proposal...nail down!)
3) IMPORTANCE OF A "POKER FACE "...
• Keep long -term options open! (SCSO /City Dept. /Spokane...)
• Short -term push $ a little and terms a lot!
• Mid -to -Long Term then push $ a lot!
• Impact on other contract negotiations with County?
• Importance of ONE VOICE (CM's team speaks for City)?
• Personal Relations vs. City Interests?
4) QUESTIONS...
• Police car markings and color?
• Uniforms, patches and jackets?
• Chief (Jointly selected by Sheriff and City Manager)?
• City Police identity and command?
• Precinct station ownership and customer service?
• "Waterline" discussions...?
• Unit cost of service approach vs. percent of total?
• City and Council interests and concerns?
JAN -18 -03 8:11AM; PAGE 2/2
Namd
Present /Absent
1-
(Diana
k
(
2- Coundl Member Taylor
(Steve)
3- Mayor DeVleming
(Mike)
4- Council
(Gary)
GIs
5- Council Member Munson
(Rich)
6- Council Member Flanigan
(Mike)
.
7- Council Member Denenny
(Dick)
A:1,Roli (all Sduet.doc
Date J‘ 1143
*Deputy Mayor
City of Spokane Valley
Council Member Roll Call List
COMMERCIAL LEASE WITRIN
CLOCK TOWER PROFESSIONAL BUILDING
THIS LEASE, made and entered this 14th day of January, 2003, by and between
Northwest Christian Schools, a non -profit corporation, whose mailing address is 5104 E.
Bernlull 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.
WITNESSETH:
For and in consideration of the mutual promises contained herein, the parties covenant
and agree as follows:
1. LEASEia 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 shown as
the building together with the non - exclusive right to use the
parking areas in conunon 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 SPOKANE VALLEY,
in the County of Spokane, State of Washington.
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
(1 day of each month.
Commercial Lease 2.doe 1
3. RENT. Lessee covenants and agrees to pay to the Lessor at WEB 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 (1 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 (10` day of each month. This is a gross lease and includes
all costs for the subject Leased Premises and common area.
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 Four and 21/100 Dollars
($18,894.21), per month payable in advance on the
first (1 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") day of
each month.
D. The rental for the twelve (12) 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 day of each month.
E. The rental Tor 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 (1 day of each month.
4. USE OF PREMISES. The Leased Premises shall be used for commercial
business purposes as permitted within a commercial business zone in Spokane County,
Commercial Lease 2.doc 2
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 Leased Premises
in any manner that causes damage to the real property or improvements, nor shall Lessee use or
allow use of the Leased Premises in any manner for any illegal purpose. Lessee shall comply
with all govenunental 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 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. 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 manner and to the
same extent as any other default under the Lease.
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 COMPLETE ALL LEASEHOLD IMPROVEMENTS. 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
agreed upon between the parties to this Lease. Said plans and specifications shall be as set forth
on Exhibit `13" hereto attached and costs to complete said leasehold improvements shall be paid
by the Lessee unless otherwise specifically set forth herein. 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.
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
parking lot, which is the subject matter of this Lease, in the same condition, less normal wear and
Commercial Lease 2.doc 3
tear, casualty, condemnation and repairs required to be made by Lessee, as of the date of
commencement of this Lease.
9. PARKING LOT MAINTENANCE. The Lessor shall keep and maintain the
parking lot and landscaping in a neat and clean condition and repair at all times. In addition,
Lessor shall remove snow during the winter season, as needed, and the 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.
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 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.
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
Commercial Lease 2.doc 4
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 tern 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 AND 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. 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
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
Commercial Lease 2.doc 5
(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. Except for cosmetic repairs such as painting and carpeting,
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
uuireasonably withheld, and employing a contractor approved by Lessor. 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, not later than the termination date, all at Lessee's sole cost and expense. 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 removal.
19. ADA REQUIREMENTS,. 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
Commercial Lease 2.doc 6
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 decd 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 terms 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 hamiless
provision stated in this Section 21 shall not apply to any Hazardous Materials that were caused or
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. CONFIRMATION 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
unmodified as of the date of the signing of the confirmation. The purpose of such confirmation
Commercial Lease 2.doc 7
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. EXHIBITS. The exhibits attached to this Lease are made a part hereof and by
this reference incorporated herein.
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
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.
Commercial Lease 2.doc 8
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 Lessee.
27. SUBROGATING 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 a Non - 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, nonnal wear and tear
excepted, and to deliver all keys to the Leased Premises to Lessor.
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, SUCCESSORS AND ASSIGNS. This Lease shall be
binding upon the heirs, executors, administrators, successors and assigns of both parties hereto,
Commercial Lease 2.doc 9
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:
Commercial Lease 2.doc 10
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 pennitted 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.
37. TIME OF ESSENCE. Time is of the essence in all provisions of this Lease.
38. IMPROVEMENTS. Lessor shall complete, at Lessee's sole cost, those
improvements as noted in Exhibit "B ". The rental amount includes the costs noted in Exhibit
"B" and additionally, a Construction Management Fee of five percent (5 %). The total amount of
Tenant Improvements plus an eight percent (8 %) annual interest rate thereon has then been
amortized over 48 months commencing March 1, 2003. All costs in Exhibit "13" have been
amortized, as noted above, except demolition costs. 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.
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.
41. RENT l)EFERRMENT. 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 issue(s) to be arbitrated and shall nominate an arbitrator to act for the responding
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.
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.
Commercial Lease 2.doc 11
The arbitrators shall have authority to award costs and attorney's 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 forin 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.
h\1 WITNESS WHEREOF, the parties hereto have executed this instrument at Spokane
Valley, Washington, on the day and year first above written.
LESSOR: LESSEE:
NORTHWEST CHRISTIAN SCHOOLS CITY OF SPOKANE VALLEY
By: By:
By:
LEE WALTON
Its: Its: Interim City Manager
Its:
Commercial Lease 2.doc 12
01/10/2003 09:48 5095330397
WEB PROPERTIES PAGE 74!19
EXHI BIT A"
Redwood PlazWClocker Suite 101
1 ,924 Rentable Square Feet
01/10/2003 03:48 5095330997
B IL DI
P11
JBBLI
R - T
sgl
ESTRQ I;
i, t CA
EXHIBIT "A"
WEB PROPERTIES PAGE 15/19
SUITE 106 FIRST FLOOR 1 0,666 SQ. FT.
CLOCKTOWER BUILDING IREDWOOD PLAZA
01/10/2003 03:48 5095330997
KOL INC
P.O. BOX 14721
SPOKANE, WA 99214
(509)'838 -2749 FAX (509) 838 -2536
w.••■■•••
NAME /'ADDRESS
Webb Preptztics
140 S. Artluu Suitt, 1510
Spokane WA 99 202
r ITEM
2:Z
6.1
9.3
10.0
3.16
3.55
6.1
9 - 8
9.4
6.4
6.2
9.6
100
300.1
Thank you ear your 6trainess.
EXXHIBIT "l3"
WEB PROPERTIES PAGE 16/19
P.O. NO.
City of Spckcmc VaL_
DESCRIPTION QTY COST
630.00
Dosaolzioo
Dcnisin8 walls patch & rpair 165.00
Floor Preparation 40,00
Ceiling Repair i 315.00
Electrical & 1,570.00
1IVAC 440.00
Interior walls 840.00
Painting L&M 5,838.00
13asabc rd 44.00
Cabix eZry 9,877.00
Doors & Trim & finish wart 385.00
Floor covering repair 175.00
Profit & O�rad 2,438.00
Plan check cud pcnnit fees 460.00
WSST 8.103'a
TOTAL
DATE
1/13/2003
PROJECT
Estimate
ESTIMATE NO.
111
Rick
TOTAL
630.00
165.001
40.00T
315.001
1,570.001
440.0CTT
840.001
5,838.001
44.001
9.877.00T
385.001
175.00T
2,438.001
460.00
1,843.32
S25.060,32
£d 1.1 2 : c0 ECM £3 u11 SBSi?E 8605 : 'ON ENG'.d JN 111-IEWdO)i S3HSINI2 3Jtf1d 1ST : W03.1
01/10/2003 03:48 5095330997
:1
I
•.S
EXHIBIT "B"
WEB PROPERTIES
PAGE 17/19
01/1 / 2663 i33:48 5P9533i1997
Koh, INC
P.Q. BOX 1472
SPOKANE, WA 99214
(509) 838 -2749 FAX (509) gS& -2586
NAM/ ADDRESS
Web Properties'
44 S. Atka Suitt W5.I 0
SpoT is WA 99242
{ TE
€ SCI FT "S"
P.O. NO, 4..,.
ITEM . DESCRIPTION
2.2 Detaoltion.
5.1 Demising walk co bolo far clogr
8.8 Entry elms
9.3 FiccePreparthan.
J ! ❑ te:y butt
3.16
Electrical & Lrahti
15.2 RLls7d pIaifzu7h . step aul rte,
9,4 Base>)aard
Cabinary
6_2 Display bona and proje4cicm Duman bit
9.6 Myr =Lfinsi dgez
) 04 ral�it & r ti
:, 0 Plan cbw..k rermit
5T
Thank you for yaua•brriness
zd wsc :se SekZ I
WEB PROPERTIES PAGE 1119
Rick
QTY
TERMS
COST
980.00
246.00
585.00
265.0rr
24 '3_00
1,004.00
2,800.00
190.00
9.955.00
085.00
?.520.00
2,2 17.00
475.00
8.10%
I TOTAL
Estimate
DATE EST1f41AT NO.
121152002 109 J
qq � y4►a.
=,JG+ 1..444- - - -i'.3
986.00T _
246.0GT
585.007
20.00'x'
2.,34.i_QCT
• 1,1:00.0D'T
1 QODT
9,955.our
1 ,285.00T
2,320, 0OT
2,217, 097
475.00
1,9 75.27
52+6,8.'6.z1
99sz8£ r7S : 'ON 3 , N1 1H?tJ .dO AS I N J ? 1d Sc1 : WOW
01/10/2003 03:49
EXHIBIT
DISPLAY
BOARD
PERMANENT
EXHIBIT
SPACE
=MOM 1 1 [MM.—nil
= 1 1
3E design group
tiiM 1tl t'1j �T�lt:tl�iSti}ddti4tildl�t
20'
5095330997
HALLWAY
EXHIBIT
LECTERN
PRESS
NEW DOOR AND FRAME
Suite 101 - COUNCIL CHAMBERS
Clocktower Bldg.
WEB PROPERTIES
REDWOOD PLAZA
11707 E. SPRAGUE
SPOKANE, WA 99206
WEB PROPERTIES
SUITE 101
Clocktower Bldg.
PROJECTION
SCREEN
PERMANENT
EXHIBIT
SPACE
NEW DRAPERY
mcr:: ri_CZ,m
arcs Iv: UZI
nu, w.: m.13
PAGE 19/19
A1.1
sntlt w. oe
LEASE ADDENDUM AGREHME.NT'
T H1S AGREEMENT made thi316th day Of January, 2003 between Northwest Christian Schools, a non-pro lit corporation, herein
after referred to as Lessor, and The City Of Spokane VaII ey, a government entity, hereinafter referred to as Lessee.
WITNESSETH
WHERAS, by that certain lease doted the 14 day of Jaanuary, 2003, hereinafter referred to as [he said Lease, Northwest
Christian Schools, as Lessor leased The City Of Spokane Vailcy, as Lessee., for a term of Four (4) years commencing March 1,
2043 and ending February 28, 2007 , the following described premises situated in the City and County of Spokane Valley,
Washington, to-wit
11707 E. Sprague — Suite 101, Spokane Valley, Washington, 99206
11707 E, Sprague — Suite 106, Spokane Valley, Washington, 99206
NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, the parties herc[a do hereby
covenant and agree as follows:
F]RST: That except as herein modified, all the terms and conditions of said Lease dated January 14, 2003, shall be thc same and
remain in full force and effect.
SECOND: Paragraph 1. PREMISES shat] bcamendcd to atiti Suite 105 consisting of 3,350 net rentable square feet for a new
total square footage of 15,940 net rentable square feet,
THIRD : The rent as described in Paragraph 2(h) RENT shall be as follows
A. The rental for thc firs! twelve months of this Lease shall be EIGHTTEEN
THOUSAND EIGHT HUNDRED NINETY POUR AND 211100 DOLLARS
($18,894.21), per month in advance on the first (1st) day of each month
commencing March 1, 2003 through February 29th, 2004.
B. The rental for the second twelve months of this Lease s hall be TWENTY
THOUSAND E1GH'i' HUNDRED EIGHTY SIX AND 71/100 DOLLARS
(S20,88ti.71) per month in advance. on the first (1st) /Jay of each month
commencing March 1, 2004 through February 2801, 2005.
C. The rental for the third twelve months of this Lease shall be TWENTY TWO
THOUSAND EIGHT HUNDRED SEVENTY NINE ANT) 21/100 DOLLARS
(522,879.21) per Tnonth in advance on the first (1 SL) day of each month
commencing March 1, 2005 through Febniary 28 20106.
D. The rental for the fourth twelve months of this Lcarse shall be TWENTY FOUR
THOUSAND EIGHT HUNDRED SEVENTY ONE AND 711100 DOLLARS
($24,871.71) per month in advance on die first (1st) day of each month
commencing march 1, 2006 through February 28th : 2007 _
In addition to the above rates, rent shall he adjusted as follows:
Lessor shal ma ke at Lessors sole expense tlkOSC Inslt rovenients requested by Lessee. When the tenant
improvement cost is determined, those improvement costs, Including a 8% interest rate, and construction
management fee of 5% of the total Improvement cost, will he amortized over the term of the lease.
FOURTH: Each and all of the covenants, terms, agreements, and obligations of this Lease Addendum Agreement shall extend to
and bind and inure to the benefit of the heirs, personal representatives, and successors and/or assigns of Lessor and to the
successors and /or assigns of the Lessor.
IN WITNESS WHEREOF , thc parties hereto have executed this agreement thc day and year first above written.
LESSOR:
LESSEE: