Resolution - 2005 - 21 - Approving A First Amendment To Office Lease With Hawkins-Smith Eagle Hall, Llc - 10/25/2005SCANNEI
RESOLUTION NO. 05-21
A RESOLUTION OF THE CITY OF EAGLE, ADA COUNTY, IDAHO, APPROVING A
FIRST AMENDMENT TO OFFICE LEASE WITH HAWKINS -SMITH EAGLE HALL, LLC,
AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE SAME; AND
PROVIDING AN EFFECT DATE.
WHEREAS, the City is desirous of amending the Office Lease with Hawkins - Smith,
LLC.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
EAGLE, Ada County, Idaho, as follows:
Section 1: The First Amendment to Office Lease between the City and Hawkins -Smith
Eagle Hall, LLC, copy of which agreement is annexed hereto and by reference made a part
hereof, is hereby approved, and the Mayor and City Clerk are hereby authorized and directed to
execute the same on behalf of the City.
Section 2: This Resolution shall take effect and be in force from and after its passage and
approval.
DATED this day of October, 2005.
ATTEST:
Aa,-=\/, 0 -
Sharo K. Bergmann, City erk
CITY OF EAGLE
Ada County, Idaho
BY��
OF, Ic
OF BqG,���
GoaQoe,l��
SEAL-,z-
'0
„
"%TZ,E OF 10 flo� /
K:\C0UNCIL\Reso1utions\draft resolutions\Resolution No. 05 -21 - Hawkins Smith.10- 25- 05.doc
FIRST AMENDMENT TO OFFICE LEASE
THIS FIRST AMENDMENT TO OFFICE LEASE is made the,:P s day of
OG'Db pr , 2005 ( "Amendment "), by and between HAWKINS -SMITH EAGLE
HALL LLC, an Idaho limited liability company ( "H -S ") and CITY OF EAGLE, an Idaho
municipal corporation ( "City "). H -S and the City may be referred to herein as the
"parties" or a "party ", as the case may be.
RECITALS
A. H -S, as Landlord, and the City, as Tenant, entered into that certain Office Lease
dated May 16, 2005 ( "Lease ") for certain property and improvements as defined
more specifically therein as "Premises ". Any capitalized terms not defined herein
shall have the same meanings as in the Lease.
B. The parties desire to amend the Lease to accommodate the increased square
footage of the Building, to adjust the purchase price due to increased square
footage, to provide a mechanism for adjusting the purchase price in the future,
and to address the budget for landscaping, based on the terms and conditions
stated herein.
AGREEMENT
NOW THEREFORE, for valuable consideration, the parties do hereby agree as
follows:
1. Increased Square Footage of Building. The final square footage of the Building, as
measured by the foundation, is 13,005 square feet. Thus, the Lease is hereby
amended as follows:
In Basic Lease Information, Section 4, "12,762" is hereby deleted and replaced with
"13,005 ". In Exhibit B, the paragraph titled "Improvements ", "12,762" is hereby
deleted and replaced with "13,005 ".
2. Adiustment to Purchase Price Regarding Square Footage. As described in the Lease.
the City has an option to purchase the Improvements constructed by H -S. The parties
acknowledge that the purchase price for the Improvements is based, in part, on H -S's
cost for constructing the Building and related site improvements, and that the cost has
increased based on additional square footage.
FIRST AMENDMENT TO OFFICE LEASE Page I
l: \Proiect Director-y\20802 Eagle City Hall - Leases with City of Eagle \First Amendment to Office Lease (10 -25 -05 Final2) doc
Thus, Exhibit D of the Lease is hereby deleted and replaced as follows:
"Lease Year
2
3
4
5 -50
Purchase Price
$2,505,687
$2,485,687
$2,465,687
$2,445,687
$2,415,687"
3. Adjustment to the Purchase Price Regarding Increased or Decreased Costs. The parties
acknowledge that increased costs in additional materials and site improvements (as
caused by the City), also result in increasing H -S's cost to construct the Improvements
over its original budget. The parties agree that any such increase in costs (as caused by
the City) shall increase the purchase price in Exhibit D of the Lease, by the actual
amount of such costs, unless the City agrees to pay for such additional costs out of
pocket. If the City causes a cost savings by reducing the overall project quality or
quantity of materials and/or site improvements, the purchase price in Exhibit D shall be
reduced by the actual amount of such cost savings.
Thus, Exhibit B of the Lease, the paragraph titled "Change Orders" is hereby amended
by adding the following sentences at the end:
"Tenant may elect to pay for any additional costs out of pocket, which payment shall be
prior to the Rent Commencement Date. If Tenant pays additional costs out of pocket,
the Rent shall not be increased for such costs. Additionally, as with the Rent, any cost
increase by the City or cost savings by the City (due to a reduction in the overall project
quality or quantity of materials and/or site improvements) shall adjust the purchase price
of the Improvements contained in Exhibit D upward or downward in the actual amount
of such cost excess or savings."
4. Landscaping. Exhibit B of the Lease is hereby amended by adding the following
paragraph at the end:
"Landscaping. The original amount budgeted for landscaping, based on the City's
RFP, was $70,000. The parties acknowledge that the landscape scope has increased
from the RFP. The City agrees to pay to Landlord, out -of pocket, for any and all
additional "landscape costs" over $87,000, prior to the Rent Commencement Date.
As used herein, "landscape costs" shall be all costs for landscape items, including but
not limited to, the following: sod, trees, plants, irrigation system, top soil, fine
grading, mulch, soil additives, decorative mounds, the design, installation and "as
built" verification of the irrigation system, the fabric and rock in the north swale area,
brick pavers in the entrance island, and bollards."
FIRST AMENDMENT TO OFFICE LEASE Page 2
1: \Project Directory\20802 Eagle City Hall - Leases with City of Eagle \First Amendment to Office Lease (10 -25 -05 Final2) doc
5. Full Force and Effect. Except as modified herein, all terms and conditions of the
Lease shall remain in full force and effect. In the event of any conflict between the
Lease and this Amendment, this Amendment shall control.
[End of Text; Signatures to Follow]
FIRST AMENDMENT TO OFFICE LEASE Page 3
L \Project Directory\20802 Eagle City Hall - Leases with City of Eagle \First Amendment to Office Lease (10 -25 -05 Final2) doc
IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the date first
above written.
LANDLORD:
Hawkins -Smith Eagle Hall LLC,
an Idaho limited liability company
By: Hawkins -Smith Management, Inc.,
an Idaho 0 oration, its Manager
By: 2 `
Robert L. Phillips, President
Date: l f ?f n s
TENANT:
City of Eagle,
an Idaho municipality
By:
Its:
Date: �,O -,�2 5 -O
ATTEST: [seal]
Sharon K. Bergmann, City /Clerk
Date:
FIRST AMENDMENT TO OFFICE LEASE Page
1: \Project Directory\20802 Eagle City Hall - Leases with City of Eagle \First Amendment to Office Lease (10 -25 -05 Final2) doc
1\