HomeMy WebLinkAboutSet PHearing_Twin City Foods LeaseKITTITAS COUNTY
DEPARTMENT OF PUBLIC WORKS
2022 AGENDA STAFF REPORT
AGENDA DATE: January 18, 2022
ACTION REQUESTED: Request to Set a Public Hearing on February 1, 2022, at
2:00 pm to consider a Public Works' Proposed Agricultural
Land Lease with Twin City Foods
BACKGROUND: Public Works (PW) desires continuing an agricultural land
lease with Twin City Foods (TCF). The requested lease
term of five years allows sufficient time for PW to jointly
plan for TCF relocation onto adjoining Flood Control Zone
District property down -gradient of Hansen Pits.
INTERACTION: Public Works.
RECOMMENDATION: Schedule a public hearing on February 1, 2022, at 2:00 PM
local time in the Commissioner's auditorium.
HANDLING: Return one original to Public Works.
ATTACHMENTS: Notice of Public Hearing; Draft Twin City Lease.
LEAD STAFF: Mark R. Cook, Director.
RITTITAS COUNTY AGRICULTURAL LEASE
AGRICULTURAL L E A S E
THIS LEASE is made and dated this day of , 2022, by and between KITTITAS
COUNTY, a municipal corporation in the State of Washington, hereinafter referred to as the LESSOR,
and TWIN CITY FOODS, INC., hereinafter referred to as the LESSEE.
The LESSOR herewith agrees to let unto the LESSEE, and the LESSEE herewith agrees to lease
from the LESSOR, the following described real property situated at the Hanson Pit, Kittitas County,
Washington, to -wit:
Beginning at the southeast corner of county owned land in the southwest 1/4 of Section 13, Township
17 North, Range 18 East, W.M.; thence north 25°36' west 1047.9 feet; thence south 71' 00' west 1307.8
feet; thence south 21 ° 40' west 237.7 feet; thence south 60' 36' east 159.8 feet; thence south 49' 21'
east 274.5 feet; thence south 88' 26' east 1428.6 feet to the true point of beginning.
Area described contains 25 acres, more or less.
1) TERM: That the term of this lease shall be for FIVE (5) years, but will require re -negotiation at
the end of five (5) years, and will commence on the 31st day of January 2022, and shall terminate
on the 2811 day of February, 2027.
2) RENT: That as rental for said premises the LESSOR shall receive and the LESSEE shall pay for
each lease year plus all applicable taxes, assessments and utilities, payable as follows:
$3585.40 plus leasehold tax, payable in advance on the first day of December each year.
3) ADJUSTMENT OF RENTAL: Pursuant to RCW 36.34.180 after the fifth year, the Lessor shall have
the right to readjust the rent on or before November 3011 of the fifth year of this lease; provided,
however that any increase shall NOT EXCEED THE CUMULATIVE EFFECT OF THE CPI INDEX
OVER THE PREVIOUS FIVE YEARS.
If the Lessee does not agree with the proposed rental rates for the subsequent five-year term, the
Lessee may request arbitration. If the Lessee elects to arbitrate, the Lessee shall select one
arbitrator and the Lessor shall select one arbitrator and the two so chosen shall select a third
arbitrator. The arbitrators shall have the authority to increase the rent or continue the previous rental
rate, and both parties shall be bound by the decision of the arbitrators. The cost of arbitration shall
be borne by the Lessee.
It is understood by Tenant that this lease is for a ground lease for Agricultural production only.
4) LEASE TERMINATION: It is understood and agreed that the real property, which is the subject
matter of this lease, is presently zoned Agricultural — "Ag -20" — under the Kittitas County Zoning
Code. It is also understood that Kittitas County is presently evaluating use of the subject land
whether within the present or any revised zoning code and that such evaluation may determine a
higher and better use for subject real property.
RITTITAS CUUNTY AGRICULTURAL LEASE
In recognition of these facts, LESSEE and LESSOR agree that LESSOR may, at LESSOR'S sole
option, modify the terms of this lease, in whole or in part, including but not limited to modifying the
area of land covered by this lease, the rental due, the term of duration of this lease and/or any
other term or condition of this lease, including canceling the unexpired portion of this lease and
re -letting the property to another tenant, all as LESSOR shall in LESSOR'S sole discretion deem
to be in the best interest of Kittitas County.
In the event the LESSOR shall elect to modify or terminate this lease, the LESSOR shall do so
only upon ninety (90) days written notice, notifying LESSEE, and Lessee's address of record, that
the lease to which this applied is being so modified or terminated.
Upon receipt of such notification, and in the event that the notification specified modification of
lease short of termination, LESSEE shall have thirty (30) days in which to notify Kittitas County of
LESSEE'S intention to continue the lease as modified or of LESSEE'S intention to treat the lease
as terminated.
In the event that LESSEE elected to treat the lease as terminated, all rents shall be pro -rated to
the date LESSEE shall have restored the premises to the LESSOR in accordance with the terms
of the lease agreement governing LESSEE'S duties to restore the premises to LESSOR upon
expiration of the lease term.
It is further agreed that neither such modification or termination of this lease nor any subsequent
re -letting of the premises, in whole or in part, shall give rise to any cause of action for damages or
any other form or relief by LESSEE against LESSOR or any successor lessee.
In the event of such modification or termination. LESSEE understands that other than a refund of
any unearned rent pro -rated based on years of lease to the date LESSEE has restored the
premises to LESSOR, LESSEE shall have no claim for compensation as occasioned by said
modification or termination.
5) UTILITIES: The LESSEE shall pay all utility services supplied to the premises.
6) USE OF PREMISES: It is understood that the LESSEE shall utilize the premises for the following
purposes, to -wit:
"Agricultural Production Only". The premises shall be used for no other purpose without
written consent of the LESSOR.
PAGE 2
NITTITASCUUNTY AGRICULTURAL LEASE
7) LEASEHOLD IMPROVEMENTS: All existing improvements currently on the lease premises
belong to Kittitas County and are not to be removed. No improvements shall be placed on the
leased premises without the prior consent of the County. If written authorization is received
from the LESSOR, the LESSEE shall submit a written estimated cost of improvement, and
upon completion of improvement all costs/receipts of said improvements to the County for
record. The depreciation life of the improvement will be established at this time.
In the event of termination of lease or early termination of lease, all improvements placed on the
premises by the LESSEE shall belong to the County, EXCEPT for those authorized by written
consent from the County.
In the event the improvements have been authorized in writing by the County, and the LESSEE is
not issued a new lease at expiration, or the LESSOR chooses to terminate said lease, the
LESSOR will determine a depreciated value of authorized improvements and purchase said
authorized improvements from the LESSEE.
8) SUBLEASE ASSIGNMENT: The LESSEE herein shall not assign this lease nor any portion
thereof without the written consent of the LESSOR.
10) HUNTING: Hunting or discharging of any firearms will not be permitted on the leased premises.
11) WASTE: The LESSEE shall not commit waste of the leased property.
13) WAIVER: No assent, express or implied, by LESSOR to any breach of any of LESSEE'S
covenants, agreements, conditions or terms hereof shall be deemed or taken to be a waiver of
any succeeding breach of any covenant, agreement, condition or term hereof.
14) INSPECTION: At all times during the term of this lease, LESSOR shall have the right to enter
into and upon the demised premises during reasonable business hours for the purpose of
examining and inspecting the same and determining whether LESSEE shall have complied with
all of its obligations hereunder in respect to the care and maintenance of the premises and all
other terms and conditions hereof.
16) ACCESS TO PROPERTY: Access to the property shall be at designated locations only. All
access gates shall remain closed and locked at all times during the term of this lease. The
LESSEE shall affix his/her own lock next to that of the LESSOR'S.
PAM 3
KITTITAS COUNTY AGRICULTURAL LEASE
17) WEED CONTROL: LESSEE shall comply with all the regulations of the weed district within
which said leased property is included and shall use all reasonable effort to eradicate and prevent
the growth of noxious weeds.
LESSEE shall control weeds on tilled lands by cultivation, clipping, spraying or burning as
recommended by the Kittitas County Agricultural Extension Agent. LESSEE shall control noxious
weeds on the premises as directed by the Kittitas County Noxious Weed Board and/or
Department of Public Works and shall be responsible for reimbursement to said authority and/or
Department of Public Works in the event that they undertake noxious weed control measures.
18) INSURANCE: The LESSEE shall provide proof of coverage thereof naming Kittitas County as
co-insured (K.C.C. 19.04.190 (E)) as follows:
NOT LESS THAN.-
$1,000,000.00
HAN:
$1,000,000.00 General Liability Coverage
19) PROPERTY DAMAGE AND BODILY INJURY: The LESSEE hereby indemnifies and agrees to
hold Kittitas County harmless from any and all claims or demands of whatsoever nature arising
out of loss, damage or injury to persons or property resulting from LESSEE'S use or occupancy
of the leased premises and areas adjacent thereto or caused by the acts or neglect of the
LESSEE, its agents or representatives.
20) PRESERVATION OF MARKERS: Any legal land subdivision survey corners, reference points
of monuments are to be preserved. If such are destroyed or disturbed, the LESSEE shall be
required to re-establish the destroyed or disturbed monuments by a licensed land surveyor in
accordance with the U.S. General Land Office standards at his own expense. Corners and/or
reference points or monuments which are disturbed or destroyed in the process of carrying out
the operation allowed by this lease must be adequately referenced and/or replaced in accordance
with RCW 58.24.040. Such references must be approved by the State prior to removal of
corners, reference points, or monuments.
22) BANKRUPTCY: It is further agreed and understood that in case of the insolvency or bankruptcy
of the LESSEE or any assignment for the benefit of creditors of the appointment of a receiver for
the LESSEE, this lease shall be immediately forfeited and shall be of no further force and effect,
and that the Trustee in Bankruptcy, Receiver or Assignee for the benefit of creditors shall not
have any rights whatsoever in the demised premises.
PACE4
NITTITAS COONTY AGRICULTURAL LEASE
23) RIGHTS OF U.S. GOVERNMENT: It is understood and agreed that this lease shall be subject to
all prior covenants and agreements, which grant to the United States Government rights and
privileges in the event of war or national emergency.
24) DEFAULT. In the event that the Lessee shall violate this lease, or any of its conditions or terms
as herein stated, the Lessor may terminate this lease by giving thirty (30) days written notice of
the conditions or terms being violated and if said violations are not corrected within the thirty -day
period, the lease may be canceled, and the County shall be entitled to peaceably retake
possession of the premises, provided the Lessee shall have the right to remove improvements as
herein provided.
NOTICES: Any notice given by one party to the other in connection with this agreement shall be
in writing and shall be sent by certified or registered mail, return receipt requested, as follows:
If to Lessor, addressed to: Kittitas County Department of Public Works, 411 N. Ruby,
Suite #1, Ellensburg, WA 98926
2. If to Lessee, addressed to: Twin City Foods Inc., 501 West 41h Avenue, Ellensburg, WA
98926
Notice shall be deemed to have been received three days after having been sent as above
described whether actually received or not.
25) JURISDICTION & VENUE: Venue to enforce any provision of this agreement shall be in Kittitas
County Superior Court.
MES
NITTITASCOUNTY AGRICULTURAL LEASE
IN WITNESS WHEREOF, LESSOR AND LESSEE have signed their names and affixed their
seals the day and year first above written
LESSEE:
LESSOR:
BOARD OF COUNTY COMMISSIONERS
Twin City Foods Inc. - Manager Laura Osiadacz,
ATTEST:
Clerk of the Board
Approved as to Form:
Neil Caulkins, Deputy Prosecutor
WSBA#
PAGE
Cory Wright, Vice -C
Brett Wachsmith, Commissioner
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Public Notice
Kittitas County, Ellensburg WA
The Board of Kittitas County Commissioners will meet at 2:00 pm on February 1, 2022 at the Commissioners' Auditorium,
205 West 5th Avenue, Room 109, Kittitas County Courthouse, Ellensburg, WA to consider an Agricultural Land Lease with
Twin City Foods.
More information is online at http://www.co.Icittitas.wa.us/notices/.
Clerk of the Board
Publish:
Daily Record: 01/20/2022; 01/27/2022
North Kittitas County Tribune: 01/20/2022; 01/27/2022
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For more information, contact Public Works
Anyone with an interest in this matter is urged to attend said hearing where all testimony will be taken. Written
comments may be received at 205 W 5th Ave. STE 108, Ellensburg, WA 98926 at or prior to the hearing.
Kittitas County complies with all ADA requirements.
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