FY2008-13 Lease Agreement with Kodiak Teen CourtLEASE AGREEMENT
THIS LEASE AGREEMENT is made this first day of July, 2007 by and between THE
KODIAK ISLAND BOROUGH, a borough organized under the laws of the state of Alaska,
hereinafter called Landlord, and Kodiak Teen Court, hereinafter called Tenant.
For and in consideration of the covenants, rents and demises, and upon the terms and
conditions hereinafter set forth, the parties agree as follows:
1. Premises. Landlord, for and in consideration of the rents, covenants and conditions
hereinafter specified to be paid, performed and observed by Tenant, does hereby let, lease and
demise to Tenant the improved real estate particularly described as follows:
Certain office space of approximately two hundred and twelve (212) square feet consisting
principally of Suite 2 and a proportional share of the designated common space consisting
of an additional one hundred and seventy four (174) square feet for a total of three
hundred and eighty six (386) square feet in the Borough Annex Building located at 610
Mill Bay Road including the parking area associated with the building located on the
following described real property:
Lot Seven B One (713-1), USS 2538 A, Kodiak Recording District, Third Judicial
District, State of Alaska.
The aforesaid office space, hereinafter referred to as the leased premises, is more
specifically depicted or outlined on the floor plan attached hereto as Exhibit A.
Tenant, upon paying the rents, and performing all of the terms and covenants on this part
to be performed, shall peaceably and quietly enjoy the leased premises subject nevertheless, to
the terms of this lease, and to any deed of trust or mortgage to which this lease is subordinated.
2. Term of Lease. The term of the lease shall be for the period of five (5) years
following the commencement of the term, unless sooner terminated as hereinafter provided. The
term of the lease shall commence on July 1, 2007, and shall expire at 5:00 P.M., Alaska Standard
Time on June 30, 2012.
In the event the foregoing commencement provision results in a commencement date other
than on the first day of a calendar month, the rent shall be immediately paid for such initial
fractional month prorated on the basis of a thirty (30) day month.
3. Termination of Lease. Both parties have the right to terminate this lease with ninety
(90) days written notification.
4. Rental. In consideration of the demise and leasing of the premises aforesaid by
Landlord, the Tenant covenants, stipulates and agrees to pay to the Landlord as rental for said
premises hereinabove described the sum of Four hundred and twenty-four dollars and sixty cents
($424.60) in advance, on or before the first day each month of the lease term.
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All rentals, unless and until otherwise directed in writing by Landlord, shall be paid to the
Landlord at 710 Mill Bay Road, Kodiak, Alaska 99615, or at such other place as Landlord may
designate from time to time in writing.
Landlord reserves the right to increase the rent cost based on cost increases on an annual
basis. A ninety (90) day notice will be provided to Tenant before the change is made.
5. Alteration of Premises. Tenant shall not make any alterations, additions, or
improvements in or to the leased premises without first obtaining the written consent of
Landlord. Any such alterations, additions and improvements consented to by Landlord shall be
made at Tenant's expense. Tenant shall secure all governmental permits required in connection
with such work, and shall hold Landlord harmless from all liability and liens resulting therefrom.
All alterations, additions and improvements, except trade fixtures and appliance and equipment
which do not become attached to the building, shall immediately become a part of the realty and
the property of the Landlord without obligation to pay therefor, except that Landlord may require
removal of all or part thereof by Tenant at the termination of the lease, at Tenant's expense, and
Tenant shall pay for or repair any damages to the leased premises, including, without limitation,
any necessary patching, repainting, and repairing caused by such removal. Upon removal of the
trade fixtures and appliances and equipment which do not become attached to the building,
Tenant shall restore the leased premises to the same condition that they were in prior to the
installation of said items, including, without limitation, any necessary patching, repainting and
repairing. Any trade fixtures, appliances, equipment or other property not removed from the
leased premises by Tenant upon termination of the lease shall be deemed abandoned by Tenant,
provided that Tenant shall save Landlord harmless from any loss, cost, or damage arising from
Tenant's failure to remove such items.
6. Use of Premises. The leased premises shall be used for general office space, and for
no other purpose, without the prior written consent of Landlord. Tenant shall not use or permit
the leased premises or any part thereof to be used for any purpose in violation of any municipal,
borough, state, federal or other governmental law, ordinance, rule or regulation. Tenant agrees
that Tenant, together with all other persons entering and/or occupying the leased premises at
Tenant's request or with Tenant's permission, will abide by, keep and observe all reasonable
rules and regulations which Landlord may make from time to time for the management, safety,
care and cleanliness of the building, and the preservation of good order therein, as well as for the
convenience of other occupants and tenants of the building, and for the use of any parking areas
adjacent to the building. The violation of any such rules and regulations shall be deemed a
material breach of the lease by the Tenant. Tenant shall not, without Landlord's prior written
consent, use, operate or install any electrical or mechanical equipment, machinery, or mechanical
devices in the leased premises, except in compliance with the highest standards applicable to the
leased premises, or to the use, operation, or installation of such equipment, machinery or devices,
generally recognized by the profession or industry in which Tenant is engaged, nor shall Tenant
use the leased premises, or any machinery or equipment therein, in such a manner as to cause
substantial noise or vibration, or unreasonable disturbance to other tenants in the building.
In the event Tenant's use of the leased premises causes an increase in Landlord's fire or
hazard insurance premiums; Tenant shall reimburse Landlord for the amount of such increase.
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7. Taxes. Tenant shall pay any and all taxes levied on personal property and trade or
other fixtures in the leased premises, and any license and excise fees and occupation taxes
covering business conducted on the leased premises, and as additional rent, an amount equal to
any sales taxes on rentals payable hereunder.
8. Utilities. Landlord shall furnish, at its expense, the following utilities and
services for normal office use of the leased premises:
a. Electricity for normal lighting and office use. Special or additional electrical
requirements shall be paid by Tenant.
b. Heat, snow removal for common areas, and sewer and water based on normal
office use.
Tenant shall provide at his expense all other utilities and services used at the leased
premises, including phone and cable.
Landlord shall not be liable for any loss or damage caused by or resulting from any
variation, interruption or failure of said utilities or services, arising from any cause, condition or
event; and no variation, interruption or failure of such utilities and services incident to the
making of repairs, alterations, or improvements, or arising from any accident, strike, condition,
cause or event in whole or in part beyond the reasonable control of Landlord shall be deemed an
eviction of Tenant or relieve Tenant from any obligation hereunder.
9. Maintenance and Repairs. Landlord shall, at its expense, maintain and keep in good
repair the foundations, exterior walls, roof and other structural portions of the building. Tenant
shall, at its expense, maintain the interior of the leased premises at all times in good condition
and repair, all in accordance with the laws of the State of Alaska and all directions and
regulations of governmental agencies having jurisdiction hereof. Tenant shall commit no waste
of any kind in or about the leased premises, and Tenant shall pay for all damage to the building,
as well as damage to tenants or occupants hereof, caused by Tenant's misuse or neglect of the
leased premises, its apparatus or appurtenances. At the expiration of the term hereof, or on the
termination of this lease, Tenant shall surrender the leased premises, its apparatus or
appurtenances. At the expiration of the term hereof, or on the termination of this lease, Tenant
shall surrender the leased premises in good and clean condition, normal wear and tear and
damage by fire or other casualty excepted.
Landlord shall maintain and repair all plumbing, lines and equipment installed for the
general supply of hot and cold water, heat, ventilation and electricity, except that Tenant shall be
responsible for any and all maintenance and repairs attributable to obstruction or objects
deliberately or inadvertently introduced or placed in the fixtures, lines or equipment by Tenant,
his employees, agents, licensees or invitees.
Landlord shall not be responsible or liable at any time for any loss or damages to
Tenant's equipment, fixtures or other personal property of Tenant or to Tenant's business except
to the extent attributable to Landlord's negligence.
Landlord shall not be responsible or liable to Tenant or to those claiming by, through
or under Tenant for any loss or damages to either the person or property of Tenant that may be
occasioned by or through the acts or omissions of persons occupying other portions of the
building.
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Landlord shall not be responsible or liable for any defect, latent or otherwise, in the
building in which the leased premises is situated, or any of the equipment, machinery, utilities,
appliances or apparatus therein nor shall it be responsible or liable for any injury, loss or damage
to any person or to any property of Tenant or other person caused by or resulting from bursting,
breakage or by or from leakage, stream or snow or ice, running or the overflow of water or
sewerage in any part of said leased premises, the building, or the surrounding area, or for any
injury or damage caused by or resulting from acts of nature or the elements, or for any injury or
damage caused by or resulting from any defect in the occupancy, construction, operation or use
of any of said leased premises, building, machinery, apparatus or equipment by any person or by
or from the acts or negligence of any occupant of the premises, unless Landlord itself is
negligent.
10. Fire and Other Casualty. Should the leased premises be damaged by fire or other
casualty, and if the damage is repairable within four (4) weeks from the date of occurrence (with
the repair work and the preparations therefore to be done during regular working hours on
regular work days), the damages shall be repaired with due diligence by Landlord, an in the
meantime the monthly rental shall be abated in the same proportion that the untenable portion of
the leased premises bears to the whole thereof. Should the leased premises be completely
destroyed by fire or other casualty, or should they be damaged to such an extent that the damage
cannot be repaired within the four (4) weeks of the occurrence, Landlord shall have the option to
terminate this lease, and Landlord shall advise Tenant within thirty (30) days after the happening
of any such damage whether Landlord has elected to continue this lease in effect or to terminate
it. If Landlord shall elect to continue this lease in effect, it shall commence and prosecute with
reasonable diligence any work necessary to restore or repair the leased premises. If Landlord
shall fail to notify Tenant of its election within said thirty -day period, Landlord shall be deemed
to have elected to terminate this lease, and the lease shall thereafter automatically terminate. The
commencement by Landlord of repair work shall be deemed to constitute notice that Landlord
has elected to restore or repair the leased premises. For the period from the occurrence of any
damage to the leased premises to the date of completion of the repairs (or to the date of
termination of the lease if Landlord shall elect not to restore the leased premises), the monthly
rental shall be abated in the same proportion as the portion of the leased premises bears to the
whole thereof.
In the event restoration or repair is delayed by acts or omissions of Tenant, there shall be
no abatement of rental during the period of such delay. If the fire or damage is caused by the
carelessness, negligence or improper conduct of Tenant, then notwithstanding other provisions of
this lease, Tenant shall remain liable for the rent, without abatement, during any period of repair
or restoration.
If the Landlord, in its discretion, shall decide within thirty (30) days after the occurrence
of any fire or other casualty in the building, even though the leased premises may not have been
affected by such fire or other casualty, to demolish, rebuild or otherwise replace or alter the
building containing the leased premises, then upon written notice given by Landlord to Tenant,
this lease shall terminate on a date specified in such notice, but no sooner than thirty (30) days
from the date of such notice, as if that date had been originally fixed as the expiration date of the
term herein leased. Tenant and Landlord hereby mutually release each other from liability and
waive all right of recovery against each other for any loss from perils insured against under their
respective fire insurance policies, including any extended coverage and endorsements thereto;
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provided, however, that this paragraph shall be inapplicable if it would have the effect, but only
to the extent that it would have the effect, of invalidating any insurance coverage of Landlord or
Tenant.
Restoration or repair work conducted in the common areas, in areas of the building
unleased, or leased to other tenants, or the noise or interference arising therefrom, shall not be
deemed an eviction of Tenant, or a breach of this lease, but Tenant's obligation to pay rent shall
be abated during such period of time as Tenant is unable to conduct business at the leased
premises by reason of actual physical interference with use of the leased premises as a result of
such restoration or repair work.
11. Subletting and Assignment. Tenant shall not sublet the leased premises, or any
part thereof, or assign this lease or any part thereof, nor shall this lease be assigned in whole or in
part by operation of law or through any court proceedings, without the prior written consent of
Landlord to such subletting or assigning; any such assignment or sublease without Landlord's
written consent shall be void.
If Tenant is a corporation, any merger, consolidation, or dissolution to which it is a party,
or any change in ownership of a majority of its voting stock outstanding, shall constitute an
assignment of this lease for purposes of this paragraph.
12. Indemnification. Tenant agrees to protect, defend, indemnify and save harmless
Landlord from and against any and all claims (no matter how meritless) demands, and causes of
action of any nature whatsoever, and any expenses incident to defense of and by Landlord
therefrom, for injury to or death of persons or loss of or damage to property occurring on the
leased premises, or in any manner arising out of Tenant's use and occupation of said premises, or
the condition thereof, during the term of this lease. Tenant shall procure and maintain public
liability insurance coverage, naming Landlord as an insured, which coverage, pertaining to the
leased premises, shall not be less than $250,000 per person for bodily injury or death, $500,000
per occurrence for bodily injury or death, and $100,000 for property damage. Landlord shall be
an additional named insured in such policy or policies. Such policy or policies shall be written by
a responsible insurance company or companies satisfactory to Landlord. Upon the signing of this
Agreement, certificates of insurance showing compliance with the foregoing requirements shall
be furnished by Tenant to Landlord for approval. Certificates shall state that the policy or
policies will not be canceled or altered without at least thirty (30) days, prior written notice to
Landlord. Maintenance of such insurance and the performance by Tenant of the obligation under
this paragraph shall not relieve Tenant of liability under this indemnity agreement.
13. Common Areas and Facilities. Landlord shall have the right to construct, maintain
and operate lighting and other improvements on all said areas; to change the area, level, location
and arrangement for common areas and other facilities and temporarily to close the common
areas to effect such changes.
All common areas and facilities which Tenant may be permitted to use and occupy are to
be used and unoccupied under a revocable license, which shall not be unreasonably revoked, and
if any such license be revoked or if the amount of such areas be changed or diminished, Landlord
shall not be subject to any liability nor shall Tenant be entitled to any compensation or
diminution or abatement of rent nor shall revocation or diminution of such areas be deemed
constructive or actual eviction.
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14. Liens. Tenant will not permit any mechanics', laborers' or material men's liens to
stand against the leased premises or improvements for any labor materials furnished to Tenant or
claimed to have been furnished to Tenant, or to Tenant's agents, contractors, or sublessee, in
connection with work of any character performed or claimed to have been performed on said
premises or improvements by or at the direction of sufferance of Tenant; provided, however,
Tenant shall have the right to contest the validity or amount of any such lien or claimed lien. In
the event of such contest, Tenant shall give to Landlord such reasonable security as may be
demanded by Landlord to insure payment of such lien or such claim of lien. Tenant will
immediately pay any judgment rendered with all proper costs and changes and shall have such
lien released or judgment satisfied at Tenant's own expense.
The foregoing provisions respecting liens shall apply to all liens, of any kind or nature,
asserted against the leased premises or improvements thereon, including liens arising out of,
incident to, or connected with the use and occupation of the leased premises by Tenant.
15. Default. If Tenant at any time during the term of this lease (and regardless of the
pendency of any bankruptcy, reorganization, receivership, insolvency or other proceedings, in
law, in equity or before any administrative tribunal, which have or might have the effect of
preventing Tenant from complying with the terms of this lease) shall:
(a) Fail to make payment of any installment of rent or of any other sum herein
specified to be paid by Tenant, and Tenant fails to cure such default within ten (10) days after
such failure to make payment: or
(b) Fail to observe or perform any of Tenant's other covenants, agreements or
obligations hereunder, and if within thirty (30) days after Landlord shall have given to Tenant
written notice specifying such default or defaults, Tenant shall not have commenced to cure such
default and proceed diligently to cure the same; or
(c) If Tenant has filed a Petition under Chapter 11 of Bankruptcy Act, 11 O.S.C. 701
et seq., or a voluntary petition under any other provision of said Bankruptcy Act, or if Tenant
finally and without further possibility to appeal or review:
(1) is adjudicated as bankrupt or insolvent; or
(2) has a receiver appointed for all or substantially all of its business or assets on
the ground of Tenant's insolvency; or
(3) has itself appointed as a debtor-in-possession; or
(4) has a trustee appointed for it after a petition has been filed for tenant's
reorganization under the Bankruptcy Act of the United States known as the Chandler Act
or any future law of the United States having the same general purpose; or
(5) if Tenant shall make an assignment for the benefit of creditors, then in any
such event Landlord shall have the right at its election, then or at any time thereafter, and
while such default, defaults or events shall continue, to give Tenant notice of Landlord's
intention to terminate this lease and all Tenant's rights hereunder, on a date specified in
such notice, which date shall not be less than ten (10) days after the date of giving of such
notice, and on the date specified in such notice, the term of this lease and all rights
granted Tenant hereunder shall come to an end as fully as if the lease then expired by its
own terms, and Tenant hereby covenants peaceable and quietly to yield up and surrender
to Landlord said leased premises and all structures, buildings, improvements and
equipment located thereon, and to execute and deliver to Landlord such instrument or
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instruments as shall be required by Landlord as will properly evidence termination of
Tenant's rights hereunder or its interest therein. In the event of termination of this lease
as in this paragraph above provided, Landlord shall have the right to repossess the leased
premises and such structures, buildings, improvements and equipment, either with
process of law or through any form of suit or proceeding, as well as the right to sue for
and recover all rents and other sums accrued up to the time of such termination, and
damages for rent not then accrued. Landlord shall also have the right, without resuming
possession of the premises or terminating this lease, to sue for and recover all rents and
other sums, including damages, at any time and from time to time accruing hereunder.
16. Notices. Any and all notices required or permitted under this lease, unless
otherwise specified in writing by the party whose address is changed, shall be mailed, certified or
registered mail, or delivered, to the following addresses:
LANDLORD:
Kodiak Island Borough
710 Mill Bay Road
Kodiak, Alaska 99615
TENANT:
Kodiak Teen Court
610 Mill Bay Road
Kodiak, Alaska 99615
Any such notices shall be deemed effective on the date of mailing or delivery.
17. Costs Upon Default. In the event either party shall be in default in the
performance of any of its obligations under this lease or an action shall be brought for the
enforcement thereof, the defaulting party shall pay to the other all the expenses incurred therefor,
including a reasonable attorney's fee.
In the event either party shall without fault on its part be made a party to any litigation
commenced by or against the other, then such other party shall pay all costs and reasonable
attorney's fees incurred or paid by such party in connection with such litigation.
18. Rights or Remedies. Except insofar as this is inconsistent with or contrary to any
provision of this lease, no right or remedy herein conferred upon or reserved to Landlord is
intended to be exclusive of any other right or remedy, and each and every right and remedy shall
be cumulative and in addition to any other right or remedy given hereunder, or now or hereafter
existing at law or in equity or by statute.
19. Waiver and Forbearance. Except to the extent that Landlord may have otherwise
agreed in writing, no waiver by Landlord of any breach by Tenant of any of its obligations,
agreements or covenants hereunder shall be deemed to be a waiver of any subsequent breach of
the same or any other covenant, agreement or obligation. Nor shall any forbearance by Landlord
to seek a remedy for any breach of Tenant be deemed a waiver by Landlord of its rights or
remedies with respect to such breach.
20. Inspection. Landlord shall at all reasonable times during Tenant's business hours
have access to the premises for the purpose of inspection. Landlord shall also be entitled to put
"to lease" or "for lease" signs in and about the leased premises, and to show the leased premises
Page 7 of 10
to prospective tenants, during the last sixty (60) days of the lease term and any extended term,
and during any period of time after Landlord has given Tenant a notice of intention to terminate
under paragraph 15 of this lease.
21. Notices of Nonresponsibility. Landlord may enter the demised premises at any
time for the purpose of posting notices of nonresponsibility.
22. Successors in Interest. This lease shall be binding upon and inure to the benefit of
the respective heirs, successors and assigns of the parties hereto.
23. Holding Over. In the event that the Tenant holds over at or after the end of the
term, the tenancy shall be needed a month-to-month tenacy commencing on the first day of the
holdover period.
24. Sins. Landlord shall provide one sign for the Tenant. Tenant agrees that any
other sign or signs installed on the demised premises shall be with the consent of the Landlord.
25. Memorandum of Lease. Tenant agrees that Tenant will not record this lease. At
the request of either Landlord or Tenant, the parties shall execute a memorandum lease for
recording purposes in lieu of recording this lease, in such form as may be satisfactory to their
respective attorneys.
26. Estoppel Certificates. Tenant shall, at any time and from time to time upon not
less than fifteen (15) days' prior request by Landlord execute, acknowledge and deliver to
Landlord a statement in writing certifying that this lease is in full force and effect and
unmodified (or in full force and effect and modified and stating the modifications), the dates to
which the rent(s) and any other charges have been paid in advance, the date Tenant entered into
occupancy of the leased premises and the date the lease term expires, the nature and amount of
any claims of Tenant against Landlord arising as a result of this lease, and the existence and
nature of any defenses or offsets claimed by Tenant against enforcement of this lease by
Landlord; it being intended that any such statement delivered pursuant to this paragraph may be
relied upon by any prospective purchaser or encumbrancer (including assignees) of the premises.
In the event Tenant fails so to certify within such fifteen (15) day period, Tenant shall be deemed
to have certified and admitted the accuracy of information submitted by Landlord in good faith
to any prospective purchaser or encumbrancer in respect to this lease.
27. Excuse for Nonperformance. Either party hereto shall be excused from
performing any or all of its obligations hereunder with respect to any repair and construction
work required under the terms of this lease for such times the performance of any such obligation
is prevented or delayed by an act of God, floods, explosion, the elements, war, invasion,
insurrection, riot, mob violence, sabotage, terrorist activity, inability to procure labor, equipment,
facilities, materials or supplies in the open market, failure of transportation, strikes, lockouts,
action by labor unions, or laws or order of governmental agencies, or any other cause whether
similar or dissimilar to the foregoing which is not within the reasonable control of such party.
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28. Construction of Lease. This lease shall be governed by and construed in
accordance with the laws of the State of Alaska.
Words of gender used in this lease shall mean and include any other gender, and singular
shall mean and include the plural and the plural the singular, where applicable, and when the
sense requires.
29. Security Deposit. An essential inducement to Landlord from Tenant for this lease
is a security deposit by Tenant in the amount of None dollars ($0.00) receipt of which by
Landlord is hereby acknowledged. Said deposit for security is for the full and faithful
performance by the Tenant of all the covenants and terms of this lease required to be performed
by Tenant. Such security deposit shall be applied to the last month's rental after the expiration of
this lease if Tenant has fully and faithfully carried out all of its covenants and terms. If Tenant
does not fully and faithfully perform the covenants and terms of this lease, Landlord may apply
the aforementioned security deposit against damages resulting from breaches of Tenant. In the
event all or part of the security deposit is so applied, Tenant shall, upon demand, promptly pay to
Landlord such amount as may be necessary to replenish the security deposit to its original
amount.
In the event of a bona fide sale of the property of which the leased premises are a part, the
Landlord shall have the right to transfer such security deposit to purchaser to be held under the
terms of this lease, and, in that event, the Landlord shall be released from all liability for the
return of such security deposit to the Tenant.
The Tenant may not assign or encumber the money deposited as security, and neither the
Landlord nor its successors or assigns shall be bound by any such assignment or encumbrances.
30. Condemnation. If the Leased Premises shall be taken or condemned for any
public purpose to such an extent as to render the Leased Premises untenantable, this Lease
Agreement shall, at the option of either party, cease and terminate as of the date when possession
is taken. All proceeds from any taking or condemnation of the Leased Premises shall belong to
and be paid to Landlord, and Tenant shall have no right to any portion of the amount that may be
awarded or paid to Landlord as a result of such taking. Tenant shall be entitled to pursue any and
all damages from the condemner personal to Tenant resulting from condemnation.
31. Subordination and Nondisturbance. This lease and all of the rights of Tenant
hereunder are and shall be subject and subordinate to the lien of every deed of trust and every
mortgage now or hereafter placed on the demised premises or any part thereof (except the
property of Tenant and others stated to be removable under paragraph 4 of this lease), and to any
and all renewals, modifications, consolidations, replacements, extensions or substitutions of any
such mortgage or deed of trust ("encumbrances").
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IN WITNESS WHEREOF, the parties have hereunto set their hands and seals this
day of , 2007
ATTEST:
ATTEST:
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Borough Clerk, Nova JAvie
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Borough Manager ick Gifford
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TENANT:
LANDLORD:
THE KODIAK ISLAND BOROUGH
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