FY2024-25 Lease Agreement Between the KIB and City of Kodiak for leased premises/office spaces and parking spacesaor�k Cm�d-V�ae�-
COMMERCIAL LEASE AGREEMENT
This Lease Agreement (Lease) is made effective as of January 1, 2024 (Effective Date), between Kodiak
Island Borough (Borough), an Alaska second class borough (Landlord), 710 Mill Bay Road, Kodiak, Alaska
99615, and The City of Kodiak (City), an Alaska municipal corporation (Tenant) P.O. Box 1397, Kodiak,
Alaska 99615; (each a Party and collectively, the Parties).
RECITALS
A. Whereas the Borough owns the building and land located at 710 Mill Bay Road; and
B. The City currently leases a portion of the building and premises for City offices; and
C. The Parties entered into a five-year lease agreement for 4,727 square feet of total leased area on
July 24, 2015; and
D. Whereas the Parties subsequently expanded the area of the premises leased by the City to 5,795
square feet of total leased are on January 26, 2017; and
E. Whereas the Parties subsequently expanded the area of the premises leased by the City to 6,547
square feet of total leased are on July 1, 2019; and
F. Whereas, after the expiration of the initial lease term, the City continued to use and occupy the
leased premises as a holdover tenant; and
G. Whereas the Parties desire to enter into a renewed term lease for an expanded area of the
premises leased for a total of 6,922 square feet.
NOW THEREFORE, in consideration of the premises and the mutual covenants herein, the parties
agree as follows:
1. Leased Premises. Landlord, for and in consideration of prompt payments, 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 (Leased Premises) described as follows:
Office space of approximately 6,922 square feet know as Suites 108 and 110-120 located on the
first floor and Suites 210-222 on the second floor and approximately 227 square feet of common space
containing two restrooms each on the first and second floors, and further identified on Exhibit A. The
building is located at 710 Mill Bay Road, Kodiak Alaska, which is also the following described real property:
Lot Seven A (7A), USS 2538A, Township 275, Range 19W, Seward
Meridian, Kodiak recording District, Third Judicial District, State of
Alaska.
The Leased Premises includes XX parking spaces dedicated for government, public and employee -
owned vehicles.
2. Term.
(a) Initial Term. The term of the Lease shall be for the period of three (3) years commencing January 1,
2024, and expiring at 5:00 PM Alaska Standard Time on December 31, 2026, unless terminated earlier as
provided below.
(b) Automatic Extensions or Renewals of Lease Agreement. This lease shall be subject to two (2)
successive automatic extensions or renewals, each such extension to be for a period of one (1) year and
to be on the same covenants, terms, and conditions as those of this Lease. Unless either Party shall give
the other Party not less than sixty (60) days' notice of its intention not to renew or extend this Lease at its
City Office Lease with the Kodiak Island Borough No. 261747
Authorized by City Resolution No. 2024-03
Page 1 of 13
expiration or at the expiration of any extended term or period with the exception of the last extension
period, the Lease shall be deemed to be extended or renewed from term to term, without further notice.
3. Termination of Lease. Both Parties have the right to terminate this Lease with ninety (90) days
written notification.
4. Rental. The Tenant agrees to pay rent at the rate of two -dollars and fifty-five cents ($2.55) per
square foot, for a total base rent in the amount of seventeen -thousand, six -hundred, fifty-one dollars and
ten cents ($17,651.10) per month due on or before the 1st day of each month.
All rental payments, unless directed otherwise in writing by Landlord, shall be paid to the Landlord
at 710 Mill Bay Road, Kodiak, Alaska, 99615.
The base lease rate per square foot for the Leased Premises will apply as a square footage rate
for any additional areas added to the Leased Premises. The base rent per square foot may be adjusted in
the event of a renewal beyond the optional extensions. Landlord reserves the right to increase the rent
cost based on utility cost increases on the anniversary of the lease if the utility costs have increased 1O%
or more cumulatively since the last adjustment. A ninety (90) day notice will be provided to tenant prior
to the change.
5. Condition of Premises. By entering into possession of the Leased Premises, Tenant acknowledges
that except as expressly set forth herein, the leased premises are being leased "as is" in their present
condition and state of repair, with no express or implied representations, statements, or warranties by
landlord as to physical conditions, quality of construction, workmanship, state or repair, or fitness for any
particular purpose, all of which are specifically disclaimed by landlord. landlord makes no warranties
regarding the leased premises' compliance with law.
6. 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 therefore, 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.
7. 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/oroccupying the Leased Premises at Tenant's request or with Tenant's
City Office Lease with the Kodiak Island Borough No. 261747
Authorized by City Resolution No. 2024-03
Page 2 of 13
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, except in compliance with the highest standards applicable 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.
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, heating and ventilation, and office use. Special or
additional electrical requirements shall be paid by the tenant.
(b) Heat, snow removal for common areas, and sewer and water based on normal office use.
(c) Janitorial service forthe Leased Premises on a five -day -a -week basis, and periodic exterior
window washing.
(d) Refuse collection based on normal office use.
(e) Other Utilities: Tenant shall provide at its expense all other utilities and services used at
the Leased Premises.
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 orfailure 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, exteriorwalls, roof, and otherstructural portions of the building. Tenantshall, at itsexpense,
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.
City Office Lease with the Kodiak Island Borough No. 261747
Authorized by City Resolution No. 2024-03
Page 3 of 13
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, its 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.
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, and 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 repairwork 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.
City Office Lease with the Kodiak Island Borough No. 261747
Authorized by City Resolution No. 2024-03
Page 4 of 13
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; 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.
12. Insurance and Indemnification.
(a) Indemnification: Tenant agrees to protect, defend, indemnify and safe 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 Leased Premises, or the condition
thereof, during the term of this Lease. Maintenance of insurance as required by this section, shall
not relieve Tenant of liability under this indemnity agreement.
(b) Tenant Insurance: Tenant shall carry and maintain during the entire term of this Lease, at
Tenant's sole cost and expense. Tenant shall provide Landlord with a copy of the signed insurance
policies evidencing the insurance coverage required under this section and providing for not less
than thirty (30) days' notice to the Landlord of the cancellation of such insurance. Tenant shall
insure that the Landlord is listed as an additional insured on the insurance policies. The failure of
Tenant to fully comply with the obligations in this Paragraph 13(b) constitutes a material breach
of the Lease. The following types of insurance, in amounts specified and in the form hereinafter
provided for and reasonably satisfactory to the Landlord:
Broad form comprehensive general liability insurance
and such insurance shall have annual
limits of not less than one million dollars ($1,000,000) per claim and two million dollars
($2,000,000) aggregate with and a deductible of not more than twenty-five thousand
dollars ($25,000).
City Office Lease with the Kodiak Island Borough No. 261747
Authorized by City Resolution No. 2024-03
Page 5 of 13
Tenant's property insurance, consisting of insurance
coverage by separate policy, or
endorsement to a policy already carried, upon Tenant's furniture, fixtures, equipment,
other personal property and Tenant's leasehold improvements in or on the Leased
Premises.
iii. Worker's compensation employer liability insurance as
required by the Alaska Workers
Compensation Act (AS 23.30).
iv. Method of coverage. Tenant's obligation to insure under
this section may be provided by
appropriate amendment, rider, or endorsement on any blanket policy or policies carried
by Tenant.
V. Waiver of Subrogation: To the extent permitted by the applicable insurance policies, and
to the extent a loss is covered by insurance, Landlord and Tenant waive any subrogated
claim against each other.
(c) Loss or Damage to Tenant's Property: The Parties hereto agree that the Landlord shall
not be responsible to the Tenant for any property loss or damage done to any property owned,
leased, or otherwise controlled by the Tenant, occasioned by reason of any fire, storm, water, or
other casualty whatsoever. It shall be the Tenant's responsibility to provide its own protection
against casualty losses of whatsoever kind or nature, regardless of whether or not such loss is
occasioned by the acts or omissions of the Landlord, Tenant, third party, or act of nature.
13. Common Areas and facilities: All common areas and common facilities in or about the Leased
Premises and the building shall be subject to the exclusive control, scheduling and management of
Landlord. 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 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.
14. Liens. Tenant will not permit any mechanics', laborers' or materialmen'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 Leased 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.
City Office Lease with the Kodiak Island Borough No. 261747
Authorized by City Resolution No. 2024-03
Page 6 of 13
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 paymentof any installment of rentorof anyothersum 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:
(i) is adjudicated as bankrupt or insolvent; or
(ii) has a receiver appointed for all or substantially all of its business or assets on the
ground of Tenant's insolvency; or
(iii) has itself appointed as a debtor-in-possession; or
(iv) 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
(v) 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 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
City Office Lease with the Kodiak Island Borough No. 261747
Authorized by City Resolution No. 2024-03
Page 7 of 13
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 Leased 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:
City of Kodiak
Post Office Box 1397
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 and repairs. Landlord, through its authorized employees, agents, contractors,
subcontractors, or other representatives, shall have the right, but not the duty, to enter upon the
Leased Premises for any or all of the following purposes:
(a) Inspection. Landlord may enter the Leased Premises at all reasonable times during Tenant's
business hours for the purpose of inspection.
(b) Repair. To make repairs and replacements in any case where Landlord is obligated to do so;
and in any other case where Landlord, in its reasonable judgment, determines that is it
necessary or desirable to do so in order to preserve the structural safety of the premises or the
building in which they are located or to correct any condition likely to cause injury or damages
to persons or property.
City Office Lease with the Kodiak Island Borough No. 261747
Authorized by City Resolution No. 2024-03
Page 8 of 13
(c) 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 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 3 of this Lease.
21. Notices of Non -responsibility. Landlord may enter the Leased Premises at anytime for the
purpose of posting notices of non -responsibility.
22. Surrender of Possession or Abandonment. At the expiration or termination of the tenancy
created hereunder, whether by lapse of time or otherwise, Tenant agrees to surrender the Leased
Premises in as good a condition and repair as received, reasonable wear and tear excepted. Tenant shall
promptly remove, and in any event not later than thirty (30) days after relinquishment of possession or
demand for removal from Landlord, whichever occurs first, all of Tenant's personal property from the
Leased Premises an any fixtures or other improvements or alterations placed on the Leased Premises by
Tenant which the Tenant is obligated to remove. In addition thereto, Tenant shall repair any damage
occasioned by such removals, at Tenant's expense.
Tenant shall not vacate or abandon the Leased Premises at any time during the term of this
Lease and, in such event, title to any personal property, fixtures, or other improvements left on the
Leased Premises shall be deemed to be vested in Landlord and Tenant shall be deemed to have
abandoned, waived, and relinquished all right, title, claim and interest therein to Landlord.
23. Holding Over. This Lease provides for automatic extensions in one-year increments in Section
(2)(b). Should Tenant give notice of intent to not renew or give notice to terminate as provided for in
this Lease, but fail to vacate the Leased Premises on or before the date for vacation of the Leased
Premises, the tenancy shall be treated as a month-to-month tenancy commencing on the first day of the
holdover period.
24. Signs. Landlord shall provide one sign for the Tenant. Tenant agrees that any other sign or signs
installed on the Leased 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
City Office Lease with the Kodiak Island Borough No. 261747
Authorized by City Resolution No. 2024-03
Page 9 of 13
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.
28. 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 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.
29. 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 Leased Premises or any part thereof (except the property of Tenant and others
stated to be removable under paragraph 6 of this Lease), and to any and all renewals, modifications,
consolidations, replacements, extensions or substitutions of any such mortgage or deed of trust
("encumbrances").
30. Landlord Reservation of Rights. The rights and privileges granted to Tenant in this Lease are the
only rights and privileges herein granted to Tenant; and Tenant has no easements, rights or privileges,
express or implied, other than those specifically herein granted by Landlord.
31. Miscellaneous.
(a) Disputes Concerning Interpretation: In any dispute between the Parties, the language of
this Lease shall, in all cases, be construed as a whole according to its fair meaning and not for or
against either the Landlord or the Tenant. If any provision is found to be ambiguous, the language
shall not be construed against either the Landlord or Tenant solely on the basis of which Party
drafted the provision. If any word, clause, sentence, or combination thereof for any reason is
declared by a court of law or equity to be invalid or unenforceable against one Party or the other,
then such finding shall in no way affect the remaining provisions of this Lease. The captions and
paragraph headings hereof are inserted for convenience purposes only and shall not be deemed
to limit or expand the meaning of any paragraph.
(b) Authority to Execute the Lease. The undersigned each represent and warrant that they
have authority to execute this Lease on behalf of their respective party without any further action
or approval from the Party and when executed the Lease will become the binding obligation of
that Party subject only to the terms and conditions herein.
(c) Survival of Obligations: All obligations of the Landlord and the Tenant, as provided for in
this Lease, shall not cease upon the termination of this Lease and shall continue as obligations
until fully performed. All clauses of this Lease which require performance beyond the termination
date, shall survive the termination date of this lease.
(d) Construction of Lease. This Lease shall be governed by and construed in accordance
City Office Lease with the Kodiak Island Borough No. 261747
Authorized by City Resolution No. 2024-03
Page 10 of 13
with the laws of the State of Alaska. Any action brought hereunder shall be in the appropriate
court for the State of Alaska sitting in Kodiak.
(e) Terminology. 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.
(e) 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.
(f) Entire Agreement. This Lease and the exhibits attached hereto is the complete and
exclusive statement of the agreement between the Parties relevant to the purpose described,
and supersedes all prior agreements or proposals, oral or written, and all other communications
between the Parties related to the subject matter of this Lease. No modification of this Lease
will be binding on either Party except as a written addendum signed by an authorized agent of
both Parties.
33. Exhibits:
Exhibit A — Diagram of Leased Premises.
IN WITNESS WHEREOF, the Parties have
1k024.
TENANT: II
_ VUI�W J�ntcyt�
City Manager — Mike Tvenge
LANDLORD:
Borough Manager—Aimee Williams
hereunto set their hands and seals thisv I day of
FOCUS.."
!��cll �L��tit ,��alt I Dlapq
Michelle Shuravloff-Nelson, 60CIerk
I_\1g .'1N
Nova Javier, Borough CI rk
City Office Lease with the Kodiak Island Borough No. 261747
Authorized by City Resolution No. 2024-03
Page 11 of 13
O
-i --I . V,,.1
LOWER LEVEL
Borough Building
I
�y
..a., 'tMia •%�`.', ain. F Ot&af .. awr . I. .� .v i •. .. r ... ,
Z zz wl
Zz.t zZp z•v Z a
BOROUGH BUILDING
UPPER LEVEL