Contract - 06-28-2016 - 80832 - Third Addendum to Lease Agreement: Office of Public Defense @ 1801, 1st Avenue, Longivew, WA.AS -8083 BOCC Agenda Motion Items 110 Meeting Date: 06/28/2016 Third Addendum to Lease Agreement: Office of Public Defense @ 1801 1 st Avenue, Longview, WA Submitted For: Claire Hauge, Office of Financial Management Submitted By: Claire Hauge, Office of Financial Management Department: Office of Financial Management Information Subject and Summary Statement Cowlitz County's lease for office space on the first floor of property located at 1801 1st Avenue, Longview, WA currently occupied by the Office of Public Defense, expires on June 30, 2016. The County has the option to extend and owners of the property have agreed to extend the term of the lease for an additional two years, with the extended term expiring on June 30, 2018 unless earlier terminated by the County with at least 90 days' notice. The terms of the existing lease will carry forward to the extended term. Current rent is $5,745.60 /month 68,946/year). Rent for the period July 1, 2016 through June 30, 2017 will be increased by the 2015 Annual Average Consumer Price Index, Portland -Salem All Urban Consumers (CPI -U), 1982 -84 = 100; increase estimated to be 1.2% ($68.95 /month; total annual rent of $69,774.57). The rent for the period July 1, 2017 through June 30 2018 will be increased by the 2016 Annual Average Consumer Price Index, Portland -Salem All Urban Consumers CPI -U), 1982 -84 = 100. Will Staff Attend Y / N Yes Department Recommendation Staff recommends the Board of Commissioners execute the attached Third Addendum to Lease Agreement for office space in River Suites Condominiums located at 1801 1 st Avenue, Longview, WA for the Office of Public Defense extending the term of the lease through June 30, 2018 and providing for rent for the new term. Fiscal Impact Expenditure Required $: $69,774.57 Budget Sufficient Y -N: Yes Amendment Required Y -N: No Source of Funds - Fund /Dept.: 001 -126 Grant Y -N: N/A Attachments 3rd Addendum River Suites Lease 2nd Addendum River Suites Lease 1 st Addendum River Suites Lease River Suites Lease - 2008 -2011 Inbox Office of Public Defense Matt Hanson Dana Gigler Office of Public Defense Clerk of the Board Form Started By: Claire Hauge Final Approval Date: 06/2412016 Form Review Reviewed By Date Tiffany Ostreim 06/23/2016 10:16 AM Matt Hanson 06/23/2016 03:14 PM Dana Gigler 06/23/2016 03:21 PM Tiffany Ostreim 06/24/2016 08:57 AM Tiffany Ostreim 06/24/2016 08:57 AM Started On: 06120/2016 02:15 PM THIRD ADDENDUM TO LEASE AGREEMENT This Addendum shall be attached to and made a part of the lease agreement between Patrick C. Maginn, Cheryl A. Maginn, Stanley Myers, Kathleen Myers, Patrick Lassen and Natalie Lassen Landlord ") and Cowlitz County ( "Tenant "), dated June 17, 2008, previously amended on May 17, 2011 and June 10, 2014. WHEREAS, Tenant wishes to exercise its option to renew for a period of twenty -four (24) months and Landlord has agreed to extend the term of the lease. NOW, THEREFORE, the parties agree that paragraphs 4, 5 and 26 should be amended as follows: 4. Term. This lease shall be for a term of eight ten Ll 0 years, commencing July 1, 2008 and ending June 30, 2962018. PROVIDED that Tenant shall have the right to terminate this lease for the period commencing july 1, 2015 through june 30, 2016-,-with or without cause, by first providing Landlord with advance written notice at least ninety 90) days prior to the start of said term. Landlords' acceptance of rent for a period after the end of the term hereof shall not extend the term, but shall simply evidence a month - to -month tenancy unless the Tenant exercises its option to renew as described in paragraph 26. 5. Rental. During the first year of the lease term, Tenant shall pay Landlord, at Landlord's address set forth in paragraph 21 or at such other place as Landlord may designate in writing, monthly rent in the sum of Five Thousand Two Hundred Dollars 5,200.00), due and payable on the first of each and every month. The rental rate has been established by the parties on the basis of $1.30 per square foot on an agreed net usable rental area of 4,000 square feet. The rent shall be considered late if not received by the fifth of each month, and shall be delinquent if not paid by the tenth of the month. A late fee shall be assessed and paid of $25.00 for the first late day (the sixth of the month), plus $5.00 for each day late thereafter. Effective July 1, 2009, monthly rent as provided under this section shall be increased to the sum of Five Thousand Four Hundred Dollars ($5,400.00), based on $1.35 per square foot. Effective July 1, 2010, monthly rent as provided under this section shall be increased to the sum of Five Thousand Six Hundred Dollars ($5,600.00), based on $1.40 per square foot. Effective July 1, 2011, monthly rent as provided under this section shall be the sum of Five Thousand Six Hundred Dollars ($5,600.00), based on $1.40 per square foot. Effective July 1, 2012, monthly rent as provided under this section shall be the sum of Five Thousand Six Hundred Dollars ($5,600.00), based on $1.40 per square foot. Effective July 1, 2013, monthly rent as provided under this section shall be the sum of Five Thousand Six Hundred Dollars ($5,600.00), based on $1.40 per square foot. 1 Effective July 1, 2014, monthly rent as provided under this section shall be the sum of Five Thousand Six Hundred Dollars ($5,600.00), based on $1.40 per square foot. Effective July 1, 2015, monthly rent as provided under this section shall be the sum of Five Thousand Seven Hundred Forty-five and 60/100 Dollars ($5,745.60), based on 1.4364 per square foot. Effective July 1, 2016 monthly rent will be increased by the 2015 Annual Average Consumer Price Index, Portland -Salem All Urban Consumers (CPI -U), 1982 -84 = 100, expected to be published February 2016. Effective July 1, 2017 monthly rent will be increased by the 2016 Annual Average Consumer Price Index, Portland -Salem All Urban Consumers (CPI -U), 1982 -84 = 100, expected to be published February 2017. 26. Option to Renew. Provided that Tenant is not in default in the performance of this lease, Tenant shall have the option to renew the lease for an additional term of 4 } up to twenty -four (24) months commencing at the expiration of the lease term ending June 30, 241-62018. All of the terms and conditions of the lease shall apply during the renewal term except that the monthly rent shall be mutually agreed upon between the Landlord and the Tenant. The option shall be exercised by written notice given to the Landlord not less than ninety (90) days prior to the expiration of the initial lease term. If notice is not given in the manner provided herein within the time specified, this option shall expire. All other terms and conditions of the Lease Agreement dated June 17, 2008, as previously amended, shall otherwise remain the same. LANDLORD: B y & A/ Managing Partner Managing Partner APPROVED AS TO FORM: J A1' A" t r V-1 Douglas E. lensen, Chief Vivil Deputy Prosecuting Attorney te -L3 Ih TENANT: BOARD OF COUNTY COMMISSIONERS t OF COWLITZ COUNTY, WASHINGTON 1&_Cj --ex Michael A. Karnofski, Chairman Dennis P. Weber, Commissioner 0 of C i CO . Lsy/ OGATL - s, ' i SNStA oe Gardner, ATTEST: F) J K( lj5 Clerk of the Board e -zg -l(e