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City of Edmonds - Boys and Girls Club Ground Lease FINALGROUND LEASE CITY OF EDMONDS AND BOYS & GIRLS CLUBS OF SNOHOMISH COUNTY TABLE OF CONTENTS LISTOF EXHIBITS..................................................................................................................... ii GROUNDLEASE......................................................................................................................... 1 SECTION 1. AGREEMENT TO LEASE PROPERTY.......................................................... 1 SECTION2. TERM..................................................................................................................... 2 SECTION3. RENT..................................................................................................................... 2 SECTION 4. BGCSC'S OTHER OBLIGATIONS.................................................................. 3 SECTION 5. CITY AUTHORITY AND OBLIGATIONS...................................................... 5 SECTION 6. INDEMNITY, INSURANCE................................................................................ 5 SECTION7. DEFAULT............................................................................................................. 8 SECTION 8. REPRESENTATIONS....................................................................................... 10 SECTION 9. GENERAL PROVISIONS................................................................................. 10 LIST OF EXHIBITS EXHIBIT A: Property Description/Boys & Girls Club Footprint EXHIBIT B: Schematic of adopted Civic Park Master Plan EXHIBIT C: Civic Park Design Guidelines GROUND LEASE CITY OF EDMONDS / BOYS & GIRLS CLUBS OF SNOHOMISH COUNTY THIS GROUND LEASE (this "Lease"), effective the day of 2023 ("Effective Date") is between the CITY OF EDMONDS, a municipal corporation of the State of Washington (the "City"), and the BOYS & GIRLS CLUBS OF SNOHOMISH COUNTY, a nonprofit corporation under the laws of the State of Washington (the "BGCSC"). WHEREAS, the City and the BOYS & GIRLS CLUBS OF SNOHOMISH COUNTY entered into a Lease dated October 29, 2015, the Term of which was scheduled to expire in 2021 unless extended by one or both of the two five-year extensions in that Lease (the "2015 Lease"). WHEREAS, the 2015 Lease encompasses the same real property as this Lease and the parties intend that this Lease supersede the 2015 Lease. The parties, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound by the terms and conditions of this Lease, agree as follows: SECTION 1. AGREEMENT TO LEASE PROPERTY 1.1 Agreement to Lease and Description of Property. The City hereby leases to the BGCSC and the BGCSC leases from the City that certain real property described and shown on Exhibit A attached hereto located thereon or to be located thereon (the "Property"). The footprint for the ground lease consists of a 12,000-sf area on the Civic Park site, as shown in Exhibit B, Civic Park Master Plan. The BGCSC will own and have the option to propose a plan to accommodate a 20,000-sf new construction building onsite, with the addition of required infrastructure improvements, utilities, landscaping and any other enhancements located on the Property or to be located on the Property during the term of this Lease. This will need to be consistent with the adopted Civic Park Master Plan (see Exhibit B) and the Civic Park Design Guidelines (see Exhibit Q. As used in this Lease, the term "Improvements" shall mean all buildings, driveways, infrastructure improvements, utilities, landscaping and any other enhancements located on the Property or to be located on the Property during the term of this Lease and made to the Property by the BGCSC. 1.2 Use of the Property. 1.2.1 Allowed Uses of the Property y the BGCSC. Except as otherwise provided herein, the BGCSC shall use the Property for the purpose of operating a non-profit community resource center serving the needs of the local youth members of the community. 1.2.1.1 Notwithstanding the foregoing, the BGCSC may from time to time utilize portions of the Property for revenue -generating activities including, but not limited to, rentals and events; provided, that all revenues generated therefrom are utilized by the BGCSC exclusively for the purposes set forth in Section 1.2.1, above. 1 CES\21798\0001\01198017.v1 1.2.2 Allowed Uses of the Property by the CitX. The City of Edmonds may be given access to the building so it may offer recreational and other programs to the public. A separate operating agreement will be created to determine City use and City funding. The City will be allowed use as mutually agreed upon with the Lessee. The City and the BGCSC agree to meet on a regular on -going basis to review the schedule and plan for uses for both parties other than what is outlined in this section. The City also will remain the responsible and controlling party for the grounds surrounding the building. The BGCSC acknowledges that the grounds surrounding the building are a public park and shall remain open to the public subject to the City's reasonable regulations related to uses, hours, etc. SECTION 2. TERM 2.1 Initial Term. The term of this Lease ("Lease Term") shall extend for a period of Forty (40) years commencing on January 1, 2023, and terminating on December 31, 2062, subject to the right of the BGCSC to extend the Lease Term as provided herein. 2.2 Extension Term. The Lease Term may be extended by the BGCSC for one additional period of fifteen (15) years. 2.2.1 Conditions of Extension. In order for the BGCSC to extend the Lease Term, it shall: (i) not be in material default at the time of providing notice of its Lease Extension and thereafter; (ii) it shall provide written notice of its Lease Extension at least one hundred eighty (180) days prior to the expiration of the Lease Term. 2.2.2 Process for Extension. No sooner than three hundred sixty-five (365) days and no later than one hundred eighty (180) days prior to the expiration of the Lease Term, the BGCSC shall provide written notice of its intention to exercise the Extension Term. The City and the BGCSC shall meet no later than one hundred twenty (120) days prior to the expiration of the Lease Term to confirm the Extension Term, discuss any matters pertaining thereto and sign a Lease Addendum incorporating the Extension Term and any mutually acceptable matters pertaining to the Extension Term. SECTION 3. RENT 3.1 Rent. In consideration for the use of the Property as specified in this Lease, the BGCSC shall pay to the City a total payment of Ten Dollars ($10.00) per year, and such sum shall be paid within ten (10) days from the date of execution of this Lease and within ten (10) days following January 1" of each calendar year of each year during the Term of this Lease. The parties mutually agree and acknowledge that the BGCSC's operation of the BGCSC upon the Property effectuates a fundamental government purpose and public benefit such as to obviate the necessity of additional rental payment compensation. Furthermore, because the BGCSC's mission is to enrich the social, physical, and intellectual wellbeing of youth, the City is able to lease the Property to the BGCSC for less than fair market value under the poor and infirm exception to the constitutional (Article 8, Section 7) prohibition on gifting or loaning of public funds. 2 CES\21798\0001\01198017.v1 SECTION 4. BGCSC'S OTHER OBLIGATIONS 4.1 Construction of Improvements. 4.1.1 City Approval and Ownership. The BGCSC shall undertake no demolition, construction, alteration, or changes ("Work") on or to the Property without the prior written consent of the City, which shall be within the discretion of the City to withhold or deny. Consent shall not be unreasonably denied. In applying its discretion, the City shall consider, among other factors deemed relevant by the City Council, the intended uses of the Property as described in Section 1.2 as well as the Property's functionality as a park. The City will allow the BGCSC to consider three (3) options: (1) improve existing facility; (2) add to existing facility; or (3) demolish existing facility and build new facility; however, the proposal must be consistent with the Civic Park Master Plan and Civic Park Design Guidelines and will be subject to City Council approval. The consent contemplated in this subsection 4.1.1 is separate and apart from the City's regulatory authority and the discretion to withhold or deny approval under this subsection 4.1.1 is not limited in the same way that the City's regulatory discretion is limited. Any deviation from approved plans must also be approved, in writing, by the City. Improvements constructed by the BGCSC during the term of this Lease shall be considered the 13GCSC's property until the date this Lease is terminated. Upon termination of the Lease Term, together with Extension, if applicable, all improvements located on the Property shall become the property of the City, excepting trade fixtures, which may be removed by the BGCSC at its option. The BGCSC will bring forth the schematic design of the facility, including its footprint on the Property, to the City Council for approval. The City Council will consider in a reasonable time frame not to exceed 60 days, and may opt to hold one or more public hearings on the schematic design prior to taking action. The BGCSC agrees not to proceed with the design development phase of the design process until the schematic design of the facility, including its footprint on the Property, is approved by the City Council. The BGCSC will also bring forth the design development phase drawings of the facility to the City Council for approval. The BGCSC agrees not to proceed with the construction document phase of the design process until the drawings from the design development phase have been approved by the City Council. Any proposed substantive design changes that are inconsistent with a previous design approval (schematic or design development), including proposed changes to the facility's footprint on the Property, shall also be subject to City Council approval and shall be returned to the City Council as soon as practicable and not be deferred until the approval of the next phase. In the event there are any disputes that arise concerning decisions made by the City under this Section 4.1.1, those disputes shall be subject to the dispute resolution provisions in Section 9.18. 4.1.2 Permits. Once approvals have been given by the City under 4.1.1, above, no Work may commence until the BGCSC obtains and delivers to the City copies of all necessary governmental permits. The BGCSC must also supply the City with a copy of any occupancy permit required and any certification required by the fire marshal, prior to the BGCSC's occupancy of the Property. 4.1.3 Construction Schedule. The consent to perform work in section 4.1.1 must be given within three (3) years of the signing of this Lease. Construction Work must be completed within three (3) years of the receipt of consent to perform the Work obtained under Section 4.1.1. If construction is begun within one (1) year of the receipt of consent and diligently performed CES\21798\0001\01198017.v1 thereafter, the City will grant the BGCSC a one (1) year extension to complete construction, if needed, so long as the BGCSC notifies the City of its need for additional time at least thirty (30) days in advance of the completion deadline. Failure to complete construction within the specified time shall be an event of default under Section 7.1 unless any delay in construction occurred as a result of failure by the City to allow the BGCSC's construction to commence in a timely manner in which case, the BGCSC shall be given a commensurate amount of time for completion of construction. All Work done on the Property at any time during the term of this Lease must be done in a good workman -like manner and in accordance with all applicable laws and all building, land use, and other permit requirements. All Work shall be done with reasonable dispatch. If requested by the City, within thirty (30) days after the completion of any Work, the BGCSC shall deliver to the City complete and fully detailed as -built drawings of the completed Work, in both electronic and paper forms, prepared by an architect licensed by the State of Washington. All landscaping shall be designed by a landscape architect licensed in the State of Washington. 4.1.4 The BGCSC shall be responsible for all repairs for any and all impacts or damages attributable to the actions of the BGCSC and its invitees to City improvements of Civic Center Playfield and city street right-of-way and agrees to return improvements to their original condition at the start of the BGCSC project, including demolition and construction as deemed acceptable by the City. The BGCCSC shall submit for City review and approval a site access plan detailing how equipment and materials will be moved in and out of the construction site and how excavation, grading and construction adjacent to park and street improvements will minimize impact and prevent damages. 4.2 Maintenance. At all times during the Lease Term and Extension Term, if any, the BGCSC shall reasonably keep and maintain the BGCSC Improvements located on the Property in good repair and operating condition and shall make all necessary and appropriate preventive maintenance, repairs, and replacements. On each fifth anniversary of this Lease (meaning every five years), the City and the BGCSC shall conduct a thorough inspection of the BGCSC Improvements on the Property and City shall inform the BGCSC of any needed repairs, maintenance or clean-up to be done in order to maintain the quality of any of the BGCSC Improvements to the Property, reasonable wear and tear excepted. Such repairs, maintenance and clean-up shall be done with reasonable dispatch. Prior to entering into the Extension Term of this Lease such an inspection will also be required and all reasonable repairs and maintenance needed to be done must be done to the Improvements before the Extension Term of the Lease commences 4.3 No Liens. The BGCSC agrees to pay, when due, all sums for labor, services, materials, supplies, utilities, furnishings, machinery, or equipment which have been provided to the Property. If any lien is filed against the Work which the BGCSC wishes to protest, then the BGCSC shall immediately deposit cash with the City, or procure a bond acceptable to the City, in an amount sufficient to cover the cost of removing the lien from the Work. Failure to remove the lien or furnish the cash or bond acceptable to the City within thirty (30) days shall constitute an event of default under this Lease and the City shall automatically have the right, but not the obligation, to pay the lien in full with no notice to the BGCSC and the BGCSC shall immediately reimburse the City for any sums so paid to remove any such lien. The BGCSC shall not encumber the Property or any Improvements thereon without prior written approval of the City. The BGCSC shall obtain a performance bond in the full amount of the contract it has signed with its contractor to complete the facility and provide such performance bond to the City prior to demolition of the 4 CES\21798\0001\01198017.v1 existing facility. The performance bond shall ensure that the construction of the facility is completed and that all workers, contractors, subcontractors, and suppliers will be paid. 4.4 Utilities and Services. The BGCSC must make arrangements for all utilities and shall promptly pay all utility charges before they become delinquent. The BGCSC is solely responsible for verifying the existence, location, capacity and availability of all utilities it may need for the BGCSC's planned use of the Property. The BGCSC shall be solely responsible for the cost of extending any existing utility lines into the Property. The Property, as made available to the BGCSC by the City, shall include utility access for water, sewer, electrical power and telephone to the edge (back of curb) of the Property. The BGCSC shall be solely responsible for securing all permits and for meeting all requirements necessary to achieve all of the above. 4.5 Sims. Any signs erected by the BGCSC must comply with all local sign ordinances. The BGCSC shall remove all signs and sign hardware upon termination of this Lease and restore the sign location(s) to its (their) former state(s) unless the City elects to retain all or any portion(s) of the signage. Signage requirements may reasonably change during the term and, to maintain uniformity and continuity, the BGCSC will comply with any new sign code requirements within a reasonable time after the adoption of such new requirements. SECTION 5. CITY AUTHORITY AND OBLIGATIONS 5.1 Delivery of Property. The BGCSC shall have the right to possession of the Property as of the Commencement Date. In the event the City shall permit the BGCSC to occupy the Property prior to the Commencement Date, such occupancy shall be subject to all provisions of this Lease. Early or delayed possession shall not advance or defer the Expiration Date of this Lease. 5.2 Quiet Enjoyment. Subject to the BGCSC performing all of the BGCSC's obligations under this Lease and subject to the City's rights under this Lease and its rights of condemnation under Washington law, the BGCSC's possession of the Property will otherwise not be disturbed by the City. Any sublease shall be subject to prior approval by the City and, if approval is granted, this quiet enjoyment provision shall apply to the BGCSC's sub -lessees. 5.3 Condition of Property. The City makes no warranties or representations regarding the condition of the Property, including, without limitation, the suitability of the Property for the BGCSC's intended uses or the availability of accessible utilities or roadways needed for the BGCSC's intended purposes. The BGCSC has inspected the Property, conducted its own feasibility and due diligence analysis, and accepts the Property in "AS IS" condition, upon taking possession. SECTION 6. INDEMNITY, INSURANCE 6.1 General Indemnity. Upon the Commencement Date of this Lease, the BGCSC agrees to defend (using legal counsel reasonably acceptable to the City), indemnify, and hold the City harmless from and against any and all actual or alleged claims, suits, actions, or liabilities for injury or death of any person, or for loss or damage to property, damages, expenses, costs, fees (including, but not limited to, attorney, accountant, paralegal, expert, and escrow fees), fines, 5 CES\21798\0001\01198017.v1 and/or penalties (collectively "Costs"), which may be imposed upon or claimed against the City, and which, in whole or in part, directly or indirectly, arise from or are in any way connected with the BGCSC's use of the Property, or from the conduct of the BGCSC's business, or from any activity, work or thing done, permitted, or suffered by the BGCSC in or about the Property; this includes any act, omission or negligence of the BGCSC, its sub -lessees, or its event space renters; any use, occupation, management or control of the Property by the BGCSC; any condition created in, on or about the Property by the BGCSC, an agent, sub -lessee, or event space renter, including any accident, injury or damage occurring in, on or about the Property after the Effective Date; any breach, violation, or nonperformance of any of the BGCSC's obligations under this Lease by the BGCSC, its sub -lessees, or event space renters; any damage caused by the BGCSC, its sub -lessees, or event space renters on or to the Property. The BGCSC's obligations and liabilities hereunder shall commence on the Effective Date of this Lease, if earlier than the Commencement Date and if caused by the activities of the BGCSC or its agents or invitees on the Property. As used herein, the indemnification provided by the BGCSC is intended to include indemnification for the actions of the BGCSC and its employees and other agents and all of the BGCSC's sub -lessees, event space renters and all of their respective employees and other agents. The BGCSC's obligations to indemnify, defend and hold harmless the City hereunder include indemnification of the employees, agents and elected officials of the City. The City covenants to protect, save and indemnify the BGCSC, its elected and appointed officials, volunteers, members and employees while acting within the scope of their duties as such, and hold the same harmless from and against all claims, demands and causes of action of any kind or character, including the cost of defense thereof, brought by the City's employees or third parties on account of personal injuries, death or damage to property arising out of the City's obligations under this Lease or in any way resulting from the willful or negligent acts or omissions of the City and/or its agents, employees or respresentatives. 6.2 Insurance Requirements. The BGCSC shall procure and maintain for the duration of the Lease insurance against claims for injuries to persons or damage to property which may arise from or in connection with the BGCSC's operation and use of the leased Property. The BGCSC's maintenance of insurance as required by the Lease shall not be construed to limit the liability of the BGCSC to the coverage provided by such insurance, or otherwise limit the City's recourse to any remedy available at law or in equity. The amounts listed indicate only the minimum amounts of insurance coverage the City is willing to accept to help insure full performance of all terms and conditions of this Lease. All insurance required by the BGCSC under this Lease shall meet the following minimum requirements: 6.2.1 Certificates: Notice of Cancellation. On or before the Commencement Date, the BGCSC shall furnish the City with original certificates and a copy of any amendatory endorsements, including but not necessarily limited to the additional insured endorsement, evidencing the existence of all insurance required under Section 6.3. Thereafter, the City must receive notice of the expiration or renewal of any policy at least thirty (30) days prior to the expiration or cancellation of any insurance policy; provided, that the BGCSC shall provide the City with written notice of any policy expiration or cancellation, within two business days of its receipt of such notice. No insurance policy may be canceled, revised, terminated or allowed to ]apse without at least thirty (30) days prior written notice being given to the City. Insurance must be maintained without any lapse in coverage during the entire Lease Term and Extension Term, if 6 CES\21798\0001\01198017.v1 any. Insurance shall not be canceled without the City's consent. The City shall also be given copies of the BGCSC's policies of insurance, upon request. 6.2.2 Additional Insured. The City shall be named as an additional insured in each required policy using ISO Additional Insured -Managers or Lessors of Premises Form CG 20 11 or a substitute endorsement providing equivalent coverage and, for purposes of damage to the Property, as a loss payee to the extent of its interest therein. Such insurance shall not be invalidated by any act, neglect or breach of contract by the BGCSC and shall not in any way be construed by the carrier to make the City liable for payment of any of the BGCSC's insurance premiums. 6.2.3 Primary Coverage. The required policies are to contain, or be endorsed to contain, that they shall be primary insurance as respect the City. Any insurance, self-insurance, or insurance pool coverage maintained by the City shall be excess of the BGCSC's insurance and shall not contribute with it. 6.2.4 Company Ratings. All policies of insurance must be written by companies having an A.M. Best rating of not less than A: VII. The City may, upon thirty (30) days' written notice to the BGCSC, require the BGCSC to change any carrier whose rating drops below such rating. 6.3 Required Insurance. At all times during this Lease, the BGCSC shall provide and maintain the following types of coverage: 6.3.1 Commercial General Liability Insurance. The BGCSC shall maintain an occurrence form commercial general liability policy (including coverage for broad form contractual liability; and personal injury liability) for the protection of the BGCSC and the City, insuring the BGCSC and the City against liability for damages because of personal injury, bodily injury, death, or damage to property, including loss of use thereof, and occurring on or in any way related to the Property or occasioned by reason of the operations of the BGCSC. Such coverage shall name the City as an additional insured using ISO Additional Insured -Managers or Lessors of Premises Form CG 20 11 or a substitute endorsement providing equivalent coverage. Commercial General Liability insurance shall be written with limits no less than $1,000,000 each occurrence, $2,000,000 general aggregate. Commercial General Liability insurance shall be written on Insurance Services Office (ISO) occurrence form CG 00 01 and shall cover premises and contractual liability. 6.3.2 Property Insurance. The BGCSC shall maintain, in full force and effect during the Lease Term, "All Risk" property insurance covering all buildings, fixtures, equipment, and all other Improvements located on the Property. Coverage shall be in an amount equal to One Hundred Percent (100%) of the new replacement value thereof with no coinsurance provisions. 6.3.3 Builder's Risk. The BGCSC shall maintain, in full force and effect during construction of the BGCSC's facility described in this Lease, Builders Risk insurance covering interests of the BGCSC, the City, the Contractor, Subcontractors, and Sub -subcontractors in the Work. Builders Risk insurance shall be on an all-risk policy form and shall insure against the perils of fire and extended coverage and physical loss or damage including flood, earthquake, theft, 7 CES\21798\0001\01198017.v1 vandalism, malicious mischief, collapse, temporary buildings and debris removal. Coverage shall include: 1) formwork in place; 2) all materials and equipment on the Property; 3) all structures including temporary structures; and 4) all supplies related to the Work being performed. The insurance required hereunder shall have a deductible of not more than Five Thousand Dollars ($5,000), which will be the responsibility of the Contractor. Higher deductibles for flood and earthquake perils may be accepted by the City upon written request by the Contractor and written acceptance by the City. Any increased deductibles accepted by the City will remain the responsibility of the Contractor. The Builders Risk insurance shall be maintained until final acceptance of the Work. 6.4 Waiver of Subrogation. The BGCSC and the City hereby release and discharge each other from all claims, losses and liabilities arising from or caused by any hazard covered by property insurance on or in connection with the Property or said facility. This release shall apply only to the extent that such claim, loss or liability is covered by insurance. 6.5 Periodic Review. The City shall have the right to periodically review the limits and terms of insurance coverage. In the event the City determines that such limits and/or terms should be changed, the City will give the BGCSC a minimum of thirty (30) days' notice of such determination and the BGCSC shall modify its coverage to comply with the new insurance requirements of the City. The City agrees that it shall be reasonable in any coverage change required, and that such change will be in accordance with standard market requirements for the BGCSC's facilities or similar activity centers. The BGCSC shall also provide the City with proof of such compliance by giving the City an updated certificate of insurance within thirty (30) days. 6.6 Failure to Maintain Insurance. Failure on the part of the BGCSC to maintain the insurance as required shall constitute a material breach of lease, upon which the City may, after giving five (5) business days' notice to the BGCSC to correct the breach, terminate the Lease or, at its discretion, procure or renew such insurance and pay any and all premiums in connection therewith, with any sums so expended to be repaid to the City on demand. SECTION 7. DEFAULT 7.1 BGCSC Default. 7.1.1 The occurrence of any one or more of the following shall constitute a material default and breach of this Lease by the BGCSC: 7.1.1.1 Vacatingthe e Property. The vacation or abandonment of the Property by the BGCSC for more than thirty (30) days. 7.1.1.2 Failure to Pay Rent. The failure by the BGCSC to make any payment of rent or any other payment required to be made by the BGCSC under this Lease, as and when due, where such failure shall continue for a period of thirty (30) days after written notice thereof by the City to the BGCSC. 7.1.1.3 Unpermitted Use of the Property. The use of the Property for any purpose not authorized by Section 1.2.1 of this Lease where such unpermitted use of the Property 8 CES\21798\0001\01198017.v1 shall continue for a period of thirty (30) days after written notice thereof shall be grounds for default. 7.1.1.4 Failure to Perform. Failure by the BGCSC to observe or perform any of the covenants or provisions of this Lease to be observed or performed by the BGCSC, specifically including, without limitation, the BGCSC's utilization of the Property for purposes materially inconsistent with those set forth in this Lease where such failure shall continue for a period of thirty (30) days after written notice thereof from the City to the BGCSC; provided, that if the nature of the BGCSC's default is such that more than thirty (30) days are reasonably required for its cure, then the BGCSC shall not be deemed to be in default if the BGCSC shall commence such cure within the thirty (30) day period and thereafter diligent prosecute such cure to completion. Notice shall specify the portion of the lease the BGCSC has failed to perform. 7.1.2 Remedies in Default. In the event of any default or breach by the BGCSC under this Lease, in addition to any other remedies at law or in equity, the City may: 7.1.2.1 Terminate the Lease. Terminate the BGCSC's right to possession of the Property by providing written notice of at least ninety (90) days; 7.1.2.2 Continue the Lease. Maintain the BGCSC's right to possession, in which case the Lease shall continue in effect whether or not the BGCSC shall have abandoned the leased Property. In such event, the City shall be entitled to enforce all landlord's rights and remedies under this Lease; and/or 7.1.2.3 Other remedies. Pursue any other remedy now or hereafter available to a landlord under the laws of the State of Washington. The City expressly reserves the right to recover from the BGCSC any and all actual expenses, costs and damages caused in any manner by reason of the BGCSC's default or breach. 7.1.3 Legal Action. If either party commences legal action relating to this lease, its terms, conditions or enforcements thereof, the prevailing party shall be entitled to all reasonable costs and attorney's fees incurred in bringing such action. Venue for any such legal action shall lie exclusively in Snohomish County Superior court. 7.2 Default by the City. The City shall not be in default unless the City fails to perform obligations required of the City under this Lease within a reasonable time, but in no event later than thirty (30) days after written notice by the BGCSC to the City; provided, that if the nature of the City's obligation is such that more than thirty (30) days are required for performance, then the City shall not be in default if the City commences performance within such thirty (30) day period and thereafter diligently prosecutes the same to completion. The notice shall specify the portion of the Lease that the City has failed to perform and the action that the BGCSC seeks to be taken by the City to prevent the default. The BGCSC further agrees not to invoke any remedies until such thirty (30) days have elapsed. 9 CES\21798\0001\01198017.v1 SECTION 8. REPRESENTATIONS 8.1 Representations of the BGCSC. 8.1.1 The BGCSC is a duly organized and legally existing corporation under the laws of the State of Washington. 8.1.2 The BGCSC's execution, delivery and performance of all of the terms and conditions of this Lease have been duly authorized by all requisite corporate action on the part of the BGCSC. This Lease constitutes the BGCSC's legal, valid and binding obligations, enforceable against the BGCSC in accordance with its terms subject to the effects of bankruptcy, insolvency, fraudulent conveyance or similar laws affecting creditor's rights and to equitable principles. Execution of the Lease does not conflict with any provision of the BGCSC's Articles of Incorporation, Bylaws or other corporate documents. 8.1.3 There is no claim, action, proceeding or investigation pending or, to the actual knowledge of the BGCSC, threatened in writing, nor is there any legal determination or injunction that calls into question the BGCSC's authority or right to enter into this Lease or perform the obligations specified in the Lease. 8.1.4 The BGCSC has not employed any broker, finder, consultant or other intermediary in connection with the Lease who might be entitled to a fee or commission in connection with the BGCSC and the City entering into the Lease. 8.2 Representations of the City. 8.2.1 The City is a municipal corporation duly organized, validly existing and in good standing under the laws of the State of Washington, with full power and authority to own and lease the Property. The City has the power to enter into and perform its obligations pursuant to this Lease. 8.2.2 The City's execution, delivery and performance of this Lease have been duly authorized consistent with its requirements under Washington law. 8.2.3 There is no claim, action, proceeding or investigation pending or, to the actual knowledge of the City, threatened in writing, nor is there any outstanding judicial determination or injunction that calls into question the City's authority or right to enter into this Lease. SECTION 9. GENERAL PROVISIONS 9.1 No Partnership. It is understood and agreed that this Lease does not create a partnership or joint venture relationship between the City and the BGCSC. The City assumes no liability hereunder or otherwise for the operation of the business of the BGCSC. The provisions of this Lease with reference to rents are for the sole purpose of fixing and determining the total rents to be paid by the BGCSC to the City. 10 CES\21798\0001\01198017.v1 9.2 Governing Law. This Lease shall be governed and construed according to the laws of the State of Washington, without regard to its choice of law provisions. Venue shall be in Snohomish County. 9.3 No Benefit to Third Parties. The City and the BGCSC are the only parties to this Lease and as such are the only parties entitled to enforce its terms. Nothing in this Lease gives or shall be construed to give or provide any benefit, direct, indirect, or otherwise to third parties. Nothing in this Lease shall be construed as intending to create a special relationship with any third party; neither the City not the BGCSC intend to create benefits in favor of any third parties as a result of this Lease. 9.4 Notices. All notices required or desired to be given under this Lease shall be in writing and may be delivered by hand delivery, in certain cases sent by facsimile, or by placement in the U.S. mail, postage prepaid, as certified mail, return receipt requested, addressed to the City at: And to the BGCSC at: City of Edmonds 121 5th Avenue North Edmonds, Washington 98020 Attn: City Clerk Boys & Girls Clubs of Snohomish County 8223 Broadway — Ste 100 Everett, Washington 98203 Attn: Executive Director Any notice delivered by hand delivery shall be conclusively deemed received by the addressee upon actual delivery; any notice delivered by certified mail as set forth herein shall be conclusively deemed received by the addressee on the third Business Day after deposit. The addresses to which notices are to be delivered may be changed by giving notice of such change in accordance with this notice provision. 9.5 Time of the Essence. Time is of the essence in the performance of and adherence to each and every covenant and condition of this Lease. 9.6 Non -waiver. Waiver by the City or the BGCSC of strict performance of any provision of this Lease shall not be deemed a waiver of or prejudice the City's or the BGCSC's right to require strict performance of the same provision in the future or of any other provision. 9.7 Survival. Any covenant or condition (including, but not limited to, indemnification agreements), set forth in this Lease, the full performance of which is not specifically required prior to the expiration or earlier termination of this Lease, and any covenant or condition which by their 11 CES\21798\0001\01198017.v1 terms are to survive, shall survive the expiration or earlier termination of this Lease and shall remain fully enforceable thereafter. 9.8 Partial Invalidity. If any provision of this Lease is held to be invalid or unenforceable, the remainder of this Lease, or the application of such provision to persons or circumstances other than those to which it is held invalid or unenforceable, shall not be affected thereby, and each provision of this Lease shall be valid and enforceable to the fullest extent permitted by law. 9.9 Calculation of Time. All periods of time referred to in this Lease shall include Saturdays, Sundays, and legal holidays. However, if the last day of any period falls on a Saturday, Sunday, or legal holiday, then the period shall be extended to include the next day which is not a Saturday, Sunday or legal holiday. "Legal Holiday" shall mean any holiday observed by the Federal Government. As used in this Lease, "Business Days" shall exclude Saturdays, Sundays, legal holidays and the week between December 25 and January 1. 9.10 Headings. The article and section headings contained herein are for convenience in reference and are not intended to define or limit the scope of any provisions of this Lease. 9.11 Exhibits Incorporated by Reference. All Exhibits attached to this Lease are incorporated by reference herein for all purposes. 9.12 Modification. This Lease may not be modified except by a writing signed by the parties hereto. 9.13 Engagement of Brokers. The BGCSC and the City each represent to one another that if a broker's commission is claimed, the party who engaged the broker shall pay any commission owed and shall defend, indemnify and hold the other party harmless from any such claim. 9.14 Right of Parties and Successors in Interest. The rights, liabilities and remedies provided for herein shall extend to the heirs, legal representatives, successors and, so far as the terms of this Lease permit, successors and assigns of the parties hereto. The words "City" and `BGCSC" and their accompanying verbs or pronouns, wherever used in this Lease, shall apply equally to all persons, firms, or corporations which may be or become such parties hereto. 9.15 Execution of Multiple Counterparts. This Lease may be executed in two or more counterparts, each of which shall be an original, but all of which shall constitute one instrument. 9.16 Defined Terms. Capitalized terms shall have the meanings given them in the text of this Lease. 9.17 No Limit on City's Powers. Nothing in this Lease shall limit, in any way, the power and right of the City to exercise its governmental rights and powers, including its powers of eminent domain. 12 CES\21798\0001\01198017.v1 9.18 Non -Binding Mediation. Should any dispute arise between the parties to this Lease, other than a dispute regarding the failure to pay Rent or other payments (including taxes) as required by this Lease, it is agreed that any such dispute will be submitted to a mediator prior to litigation. The parties agree to exercise good faith efforts to agree on a mediator and to resolve disputes covered by this section through the mediation process. The parties agree that the mediation will be conducted through Judicial Dispute Resolution (JDR) in Seattle. If the parties cannot agree on a mediator, one shall be appointed by JDR. The mediation fee shall be shared equally by the City and the BGCSC. Either party may commence the mediation process by contacting JDR and notifying the other party by mail. The mediation shall become binding upon the parties only upon the execution of a settlement agreement based on the mediator's recommendation. If a party refuses to participate in the mediation process, either by not paying the mediation fees or not appearing for mediation, the Superior Court may issue an appropriate enforcement order or sanction relating to this mediation provision in its discretion. 9.19 This Lease Supersedes. This Lease shall replace and supersede the 2015 Lease. The parties hereby terminate the 2015 Lease in its entirety as of the effective date of this Lease. 9.20 Recording. A Memorandum of this Lease may be recorded after execution by the parties. 9.21 Entire Agreement. This Lease represents the entire agreement between the City and the BGCSC relating to the BGCSC's leasing of the Property. It is understood and agreed by both parties that neither party nor an official or employee of a party has made any representations or promises with respect to this Lease or the making or entry into this Lease, except as expressly set forth in this Lease. No claim for liability or cause for termination shall be asserted by either party against the other for, and neither party shall be liable by reason of, any claimed breach of any representations or promises not expressly set forth in this Lease; all oral agreements with the parties are expressly waived by both parties. This Lease has been extensively negotiated between the parties. Therefore, no alleged ambiguity or other drafting issues of the terms of this Lease shall be construed, by nature of the drafting, against either party. IN WITNESS HEREOF, the parties have subscribed their names hereto effective as of the day, month and year first written above. LESSEE: LESSOR: BOYS & GIRLS CLUBS CITY OF EDMONDS OF SNOHOMISH COUNTY Bill Tsoukalas, Executive Director Mike Nelson, Mayor APPROVED BY CITY COUNCIL ON: 13 CES\21798\0001\01198017.v1 ATTEST: Scott Passey, City Cleric APPROVED AS TO FORM: Office of the City Attorney STATE OF WASHINGTON ) ) ss. COUNTY OF SNOHOMISH ) I certify that I have evidence that Mike Nelson 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 Mayor of the City of Edmonds, to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. DATED: PRINTED NAME: NOTARY PUBLIC In and for the State of Washington. My commission expires: 14 CES\21798\0001\01198017.v1 STATE OF WASHINGTON ) ) ss. COUNTY OF SNOHOMISH ) I certify that I have evidence that Bill Tsoukalas is the person who appeared before me, and said person acknowledged that he signed this instrument, on oath stated that s/he was authorized to execute the instrument and acknowledged it as the Executive Director of the Boys & Girls Clubs of Snohomish County, to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. DATED: PRINTED NAME: NOTARY PUBLIC In and for the State of Washington. My commission expires: 15 CES\21798\0001\01198017.v1 EXHIBIT "A" w 1 N 0 0 19 EDMONDS CIVIC CENTER PLAYFIELD BOYS & GIRLS CLUB SITE FOOTPRINT WALKER MACY - FEBRUARY 2023 1 1 mmmm lm�mw %fm"mmrmmm�m" t 0 5 10 20 40 NORTH SCALE: 1 " = 20'-0" :* t I • 4 y 1 , 1 1 • 1 - ,� y 1 i • (� - 1s I ' � I � • '� _ I . - 1 • M s e / • _ Ap Ar fit 6,mj mail + l _ 41 �• "AA W-O�_ ► ■ r i jiff �fr.' (}i',, Ira r i - M N any Hj/ m04- - I 'S i 1■1 1■1 � F ' s •� 1�1 I -- - - - - - - - - - - - - - - - - - - - - - - - - - ----------- I ----—————————————————— — — — — —— ------ — ————— ' I I ' Ra I I I ------------------- - - - - -- I' L ' r_ t I I ' I M ------------ ------------------- IF ------------------------- I 1 _ 1 . • � I =.l I I i 1 J �I I 1- • I \ ! ' a + I 1 , + r -- -------------------- 1 '-----------0------------------ ---- J 3 s N ` .� i a > WIN , I a— — — — — — — — — r , 1 s� 1 + ' n - N aAV H49 kp. 1 •im t tir • (/� ' irePall IL -_ • + a t AP ir 4 I /44 a �I It lu loll 44 2�4ro EXHIBIT "CII I l ► : ll�� MEMORANDUM LANDSCAPE ARCHITECTURE URBAN DESIGN PLANNING To: Carrie Hite, City of Edmonds Topic: Boys & Girls Club Design Guidelines From: Walker Macy Project: Edmonds Civic Center Playfield SD -CA CIVIC CENTER PLAYFIELD DESIGN GUIDELINES Date: 09/11 /2018 Project #: P3282.04 Site Design — Sidewalk Zones and Streetscape Features Intent: To produce a streetscape that is safe, convenient, comfortable and appealing for people on foot. 1. Sidewalk materials and design shall meet and match the surrounding park and the design established in the Civic Center Playfield Master Plan. 2. Amenity Area: Signs, street furniture, lighting, landscaping, etc., shall be located in the amenity area. Requirements for this area are associated with the Civic Field Master Plan 3. Clear Walkway Area: Sidewalk area shall maintain a clear 5 foot dimension for pedestrian travel. Signs, street furniture, planters and other amenities shall not encroach upon the clear walkway area. 4. Storefront Area: Sidewalk area outside the pedestrian travel area may be used for outdoor dining and/or display. Site Design - Service and Storage Intent: To reduce the visual impacts of storage, trash, and service areas. 1. Storage of trash and recycling and other goods shall be included within the building envelope. This standard does not apply to temporary uses such as material storage during construction or street vendors. 2. Any mechanical equipment located on the ground, roof, or wall -mounted and visible from the street, common areas, the park, or a public vantage point shall be screened. 3. All on -site service areas, loading zones, outdoor storage areas and similar activities shall be located in an area not visible from public streets and consider adjacent public spaces. Consideration shall be given to developing common service courts at the interior of blocks. Service areas should accommodate loading, trash bins, recycling facilities, storage areas, utility cabinets, utility meters, transformers, etc. Service areas shall be located and designed for easy 1218 3RD AVE, SUITE 1310 I SEATTLE, WA 98101 1 PHONE: 206.582.3874 1 WEB: WALKERMACY.COM Edmonds Civic Center Playfield Design Guidelines 9/11 /2018 Page 2 of 6 access by service vehicles and for convenient access by each tenant. Any emissions of noise, vapor, heat or fumes shall be mitigated. Site Design — Public Spaces Intent: To provide an enhanced pedestrian experience by linking public plazas, courtyards and other gathering spaces. 1. Outdoor gathering spaces should be oriented toward the south (for solar exposure) when possible to create a more comfortable space. 2. Buffer plantings should be a minimum of 12' and align with the Civic Center Playfield plan. 3. Setbacks from the ROW shall meet City Code. Building Design — Prominent Entrances Intent: To ensure that entrances are easily identifiable and accessible from streets and sidewalks. 1. Locate primary entrances so that they are visible from the public right of way. The entry shall be marked by architectural elements such as canopies, ornamental lighting fixtures and/or fixed seating that offer visual prominence. 2. The finished floor of the ground floor shall have the same grade as the street sidewalk and/or adjacent public space and match with the Civic Center Playfield plan. 3. Ground level detail shall reinforce the character and attractiveness of the streetscape, provide pedestrian friendly amenities. Facades shall be designed to be pedestrian friendly through the inclusion of at least four of the following elements: a. Kick plates for storefront windows b. Projecting window sills C. Pedestrian -scale signage d. Exterior lighting sconces e. Containers for seasonal plantings f. Window box planters g. Benches and seat walls along 30% of the length of the fagade h. Cafe tables and chairs on the south side of the building. i. Match Civic Center Playfield paving system. j. Brick, tile or stone work on the ground floor fagade k. A feature not on the list that meets the intent and is approved by Director. Building Design — Transparency Zone Intent: To provide a visual connection between activities inside and outside of buildings. Edmonds Civic Center Playfield Design Guidelines 9/11 /2018 Page 3 of 6 On all streets: buildings shall include windows with clear vision glass on at least 60% of the area between two and twelve feet above grade for all ground floor building facades that are visible from an adjacent street or public space. If windows are not appropriate, decorative art (such as noncommercial murals or relief sculpture), significant architectural detailing, or wall -covering landscaping may be used, as approved by the COE. Building Design — Treatment of Blank Walls Intent: To soften the visual impact of any wall that does not have windows Any blank wall shall incorporate at least five of the following features: 1. An architectural plinth (a stone or masonry base at least 36" high) 2. Belt course(s) of masonry 3. A Green Wall. For the purposes of this subsection, a "Green Wall" is defined as a vertical trellis or cable/wire net systems installed as part of the building envelope system where climbing plants or cascading groundcovers are trained to cover these specially designed supporting structures (also commonly referred to as biowalls, vertical gardens, modular living walls). A Green Wall should be located in association with a raised planter at least 2 feet high and 3 feet wide integrated into the building design. A Green Wall shall be planted with climbing vines or plant materials sufficient to obscure or screen at least 60% of the wall surface within 3 years 4. Recesses at least 4 feet wide and 2 feet deep 5. Overhanging roof 6. Decorative tile work 7. Accent lighting 8. Artwork that does not contain a commercial message 9. Landscape planting bed at least 5 feet wide, or raised planter bed at least 2 feet high and three feet wide, in front of the wall. Such planting areas shall include plant materials sufficient to obscure or screen at least 60% of the wall surface within 3 years. The applicant shall utilize plant materials that complement the natural character of the Pacific Northwest; are adaptable to the climatic, topographic, and hydrologic characteristics of the site; and should include native species. 10. Seating (benches or ledges) 11. A feature not on the list that meets the intent, as approved by the City of Edmonds. Building Design — Massing and Articulation Intent: To reduce the apparent bulk of buildings and maintain a pedestrian scale, achieved through consistent building details and proportions on all sides to ensure a "four-sided" quality to a building and upper -story features that improve the relationship between the upper stories and the street. 1. Buildings 30 feet in height and taller shall distinguish a "base" at ground level using articulation and materials such as stone, masonry, or decorative concrete. Edmonds Civic Center Playfield Design Guidelines 9/11 /2018 Page 4 of 6 2. The "top" of the building shall emphasize a distinct profile or outline with elements such as a projecting parapet, cornice, upper level step back or pitched roofline. 3. The "middle" of the building should be distinguished by a change in materials or color, windows, balconies, step backs and signage. 4. The design of the building shall provide consistent architectural details; colors and materials shall be consistent on all building walls. 5. Upper stories of buildings should maintain an expression line along the fagade-- such as a change of material, projections, or setbacks —to reduce the perceived building mass. Upper floor windows should be divided into individual units and not consist of a "ribbon" of glass. 6. Buildings shall include articulation along all facades Facade details and elements should be integral to the overall building design and should not appear added on. The purpose is not to create a regular rigid solution but rather to break up the mass in creative ways to add visual interest and to reduce a building's apparent scale. To provide interest and variation appropriately scaled to the building and all facades shall incorporate all of the following methods: a. Distinctive roof forms. b. Integrally textured, colored or patterned materials, such as stone or other masonry. c. Windows articulated with mullions, recessed windows, punched windows, etc., as well as application of complementary articulation around doorways and balconies. d. Landscaping: 1. Preferred: A Green Wall. For the purposes of this subsection, a "Green Wall" is defined as a vertical trellis or cable /wire net system installed as part of the building envelope system where climbing plants or cascading groundcovers are trained to cover these specially designed supporting structures (also commonly referred to as biowalls, vertical gardens, modular living walls). A Green Wall should be located in association with a raised planter at least 2 feet high and 3 feet wide integrated into the building design. A Green Wall shall be planted with climbing vines or plant materials sufficient to obscure or screen at least 60% of the wall surface within 3 years. 2. Alternative if the applicant can demonstrate to the satisfaction of the City of Edmonds that a Green Wall is not appropriate, alternative landscaping, architectural, or site design feature(s) of equal or better means of satisfying the intent may be allowed. 3. Architectural methods of breaking down the fagade, such as changes of plane or vertical fins. 4. A fagade design that provides an alternative method for creating visual interest at the pedestrian level, reducing the perceived building mass, and meets the intent, may be approved by the City of Edmonds. Edmonds Civic Center Playfield Design Guidelines 9/11 /2018 Page 5 of 6 Building Design — Roofline and Roof Mounted Equipment Intent: To ensure that roof forms provide distinctive profiles and interest and to screen rooftop mechanical and communications equipment from the ground level of nearby streets and residential areas. To insure that a buildings mechanical equipment and/or other utility hardware is well screened from public view to enhance the buildings appearance. 1. Mechanical equipment shall be screened by an extended parapet wall or other roof form that is integrated with the architecture of the building. 2. No roofline ridge should run unbroken for more than 80 feet. 3. Mechanical equipment and/or other utility hardware for a building located on the roof, ground or wall mounted on the building, shall be screen from public view with architectural and/or landscape materials, or they shall be located so as not to be visible from any street, common areas, or public vantage point. 4. Screening shall be compatible with the building architecture (materials, color, and scale) and the surrounding landscaping. 5. When using landscaping to screen equipment, plants shall be arranged with a minimum of 50% coverage at time of installation and be able to grow to fully screen or shield the equipment within 3 years. 6. Screening with landscaping shall utilize plant materials that complement the natural character of the Pacific Northwest; are adaptable to the climatic, topographic, and hydrologic characteristics of the site; and that include native plant species whenever possible. Building Design — General Intent: To require additional features to be incorporated into higher density residential development when located adjacent to properties zoned for lower density single-family use in order to enhance the compatibility between uses. Mechanical equipment shall be screened by an extended parapet wall or other roof form that is integrated with the architecture of the building. 1. Incorporate at least four of the following architectural features: a. Recessed Entry b. Dormers c. Higher Quality Materials d. Distinctive Roof Forms e. Upper Level Balconies f. Gables g. Window Patterns h. A feature not on the list that meets the intent and is approved by the City of Edmonds. i. Flat blank walls shall not be visible from the street or common areas, or public vantage point. 2. Exterior cladding shall utilize masonry, concrete, and metal materials and color palette as approved by City of Edmonds for the use within the park. 3. Utilize sunscreens and metal canopies at entries and all glazed openings on south and west facades to match the character and materials of the restroom structures within the park. Edmonds Civic Center Playfield Design Guidelines 9/11/2018 Page 6 of 6 4. Integrate wood feature elements to match materials used at park shade structure. *Design Standards for the BD Zones remain applicable.