20160822_5046.pdf

DECISION MEMORANDUM
TO: COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM: KARL KLEIN
DEPUTY ATTORNEY GENERAL
DATE: AUGUST 19, 2016
SUBJECT: TENANT ESTOPPEL CERTIFICATE FOR 472 W. WASHINGTON
The Land Board’s commercial real estate agent has asked the Commission to sign a Tenant
Estoppel Certificate to assist the agent in marketing 472 W. Washington before auction. A working
copy of the Certificate is attached to this memo. By way of background, a Tenant Estoppel
Certificate is commonly used in commercial real estate transactions to assist potential buyers and
lenders in performing due diligence on the property. The Commission’s lease for 472 W. Washington
specifically requires the Commission to sign such a Certificate upon the Lessor’s request:
COMMISSION DECISION
Does the Commission authorize its President to sign the Tenant Estoppel Certificate (or a
substantially similar one) on the Commission’s behalf?
M:Estoppel Certificate_kk
TENANT ESTOPPEL CERTIFICATE
This TENANT ESTOPPEL CERTIFICATE (“Certificate”)is executed by State of Idaho Public Utilities
Commission (“Tenant”),who is the current tenant of record of certain leased premises (“Leased Premises”)
located on real property located at Central Washington Place,472 W.Washington Street,Boise,ID 83702
(“Property”),under that certain lease dated February 11,2008 and amended on August 5,2013 (“Lease”—a
true,correct and complete copy of which is attached hereto as Exhibit “A”and “B”).This Certificate regarding the
Leased Premises is provided to,and at the request of;the IDAHO DEPARTMENT OF LANDS,working for and
on behalf of,the STATE BOARD OF LAND COMMISSIONERS (“Landlord”).
Tenant hereby certifies,represents,and warrants to Landlord that:
1.There are no amendments or modifications or agreements,oral or in writing,relating to the Lease that are
not attached to the Lease.The Lease contains the complete agreement between Landlord and Tenant
with respect to the Lease and the Leased Premises.
2.There are no known defaults or breaches of any covenant,condition,warranty,obligation or deficiencies of
any kind under the Lease that give rise to a default or breach by Landlord or Tenant.Both Tenant and
Landlord are currently in full compliance with all terms,conditions and covenants of the Lease.
3.All payments owing by Tenant to Landlord under the Lease are current as ofthe date ofthis Certificate.
4.There is no unredeemed abated rent or any other Landlord concession due or owing under the Lease,
including,but not limited to,any Landlord-obligated improvement or allowance,unless otherwise
specified as follows:None.
5.The monthly rent is presently $25,491.83 for Office and $363.59 for Storage,and is due and payable on
or before the first day of each month.Tenant has paid Landlord prepaid rent,with a 3%discount,for
July 2016-May 2017 in the amounts of:Rent $280,410.13;Storage $3,999.49;and Car Park $5,945.50.
Tenant paid Landlord the amount of $0.00 as a security deposit in accordance with the terms of the
Lease.
6.As of the date of this Certificate,Tenant is current on any and all taxes and assessments related to
Tenant’s leasehold interest in the Lease and trade fixtures,if any.
7.The Lease expires on May 31,2019.There are no options to extend the term of this Lease that are not
contained in the Lease.Any extension provided for in the Lease,if any,is expressly set forth as follows:
One (1)six-year option to renew.
8.As ofthe date of this Certificate,Tenant has no defenses or offsets to the enforcement of the Lease.
9.Tenant currently has every intention of;and is capable of,maintaining its interest in the Lease in
accordance with the terms thereof.
10.Neither Tenant,nor any guarantor of Tenant,is presently the subject of any proceeding pursuant to the
United States current Bankruptcy law.
ii.Tenant disclaims any and all right,title and interest to the Leased Premises or Property except those
rights specifically granted and provided for by the Lease.
12.Tenant has no right under the terms ofthe Lease to purchase the Leased Premises or the Property.
13.Tenant acknowledges that:(a)a potential buyer and its lender will rely on the statements of Tenant herein
in making a decision to purchase the Property from Landlord;(b)this Certificate shall inure to the benefit
of Landlord and Landlord’s lenders and their respective successors and assigns;and,(c)Landlord may
transfer or assign its interest in the Lease;and,subject to Idaho Code 67-1027 and the approval of the State
Board of Examiners,Tenant agrees that upon notice of any such transfer or assignment,that Tenant will
attorn to and acknowledge any such transferee or assignee,and shall perform all of Tenant’s obligations
under the Lease in favor of any such transferee or assignee,including,without limitation,the payment ofrent,to be paid directly to any such transferee or assignee.
14.The person(s)signing this Certificate on behalf of Tenant warrants that it is fully and duly authorized onbehalfofTenant,and to bind Tenant,upon the execution of this Certificate.
TENANT:
STATE OF IDAHO PUBLIC UTILITIES COMMISSION
By:
________________________________
Name:Paul Kjellander
Title:
_______________________________________________
[Attach complete copy of the Lease and any extension or amendment thereto]
TENANT ESTOPPEL CERTIFICATE -2