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Home My WebLink AboutAdden 1 LAG-13-001, Adden #1-15 ADDENDUM "A"TO CARCO THEATER LEASE The Carco Theater Lease ("Lease"), dated January 28, 2013, known as LAG 13-001, between the City of Renton ("City" or "Lessor"), and Puget Sound Access, ("PSA" or "Lessee") for lease of the property described in said Lease, is amended as shown below. All other provisions of the Lease shall remain in full force and effect. ARTICLE 1. Section 1.1 Date of Lease: January 1, 2015—December 31, 2025 Section 1.6 Lease Term: 1.6.1. The Amended term of this Lease shall be ten (10) years, beginning on January 1, 2015 (the "Commencement Date"), and ending on December 31, 2025. Section 1.9 Rent and Other Charges Payable by Lessee: 1.9.4 Revenue Sharing: In addition to the monthly Base Rent above, Lessee shall pay monthly to Lessor the following amounts based on theatre uses, including venue-generated post-event, post-production, and media distribution services. Such amounts shall not include any taxes paid by Lessee or gratuities. 1st Year(2015) 12% of venue-generated gross receipts 2nd Year(2016) 13%of venue-generated gross receipts 3rd through 10th Year(2017-2024) 14%of venue-generated gross receipts Income that PSA generates in ways that do not involve Carco Theatre bookings are not subject to percentage rents. PSA will make good faith efforts to grow and improve Carco Theatre capacity and technical support to attract clients and to be a better resource to the community on a continuous basis. 1.9.4.1 Reduction in Revenue Share if Lessee not qualified for Excise Tax Exemption: If Lessee is not qualified for Excise Tax Exemption as set forth in 1.9.3, and if Lessee is therefore paying 12% or more in Excise Tax, then the Revenue Sharing percentages during any year of the extended Term shall be modified as follows: 0% of venue-generated gross receipts for annual gross receipts under $150,000; 5% of venue-generated gross receipts for annual gross receipts over $150,000; and 10% of venue-generated gross receipts for annual gross receipts over$250,000. 1.9.4.2 PSA Improvements: PSA has financed improvements within a portion of the basement of the premises as permitted by City. The Contract between PSA and Harto Construction for said improvements is attached to this Amendment. The total amount financed by PSA is $36,079.31 (the "Costs"). 1 Lessor agrees that Lessee may subtract the costs of these improvements from any rent currently past due, and/or Lessee may subtract the costs of these improvements from up to half of any future rent payments, until the Costs are equal to the amount of unpaid rent. At such time that the Costs are equal to the amount of unpaid rent, the total Costs will be added to Lessee's remaining rent obligation and amortized over the then remaining term of the lease at an interest rate of prime plus one (1) percent %. PSA will remain obligated to pay for any unpaid balance of the improvements should this lease be terminated prior to the end of the extended Term. 1.9.4.3 Past City-Sponsored User Days and past Lessee percentage payments: Upon execution of this Lease Amendment, Lessee agrees to accept and maintain as scheduled any prospective City Usage Days (55 total days between May 2015 through May 2016), and as consideration for (i) all such prospective City Usage Days and for (ii) all past City Usage Days that may have been in excess of those provided for in the Lease, Lessee shall be considered "current" on any Revenue Share percentages, paid or unpaid, as of the date of execution of this Amendment. 1.9.5 Fee Increases: Increases to rental rates for non-profit entities and residents of the City of Renton may not be imposed without prior Renton City Council approval. When Lessee proposes to increase any of the fees charged to users, a list of these increases shall be sent to the Lessor's representative for presentation to the City Council for approval. The time frame for Lessor action on approval is normally one month. As noted above, Media Services revenue shall be included in the percentage rates. However, Media Services Rates shall include amounts for equipment use and consumables, which will vary by user. PSA may offer a frequent user fee reduction to increase overall use of the facility. Additionally, PSA occasionally offers community organizations and citizens a subsidized service to produce video to air as part of its non-profit mission. This work is scheduled around full-pay customers ARTICLE 5 Section 5.4 City Use of Facility 5.4.1 City-Sponsored Events: 5.4.1.1 Lessor shall have the right to schedule use of the property for up to a maximum of two hundred forty (240) hours over no more than forty-five (45) days for "City-Sponsored User Days" per year at the Carco Theatre, subject to the allocations set forth below, and including, but not limited to, the Renton 2 Youth Symphony Orchestra and Specialized Recreation Drama. These City- Sponsored User Days shall be held with no rental charge to the City. The 45 City-Sponsored User Days shall be allocated as follows: Lessor shall have the right to schedule up to a maximum of ten (10) City-Sponsored Prime User Days per year at the Carco Theatre, and up to a maximum of 35 (35) City- Sponsored Regular User Days per year at the Carco Theatre. As used herein, "Prime User Days" are any City-Sponsored User Day, for any number of hours, on a day of the week that falls on a Thursday, Friday, Saturday, or Sunday. "Regular User Days" are any City-Sponsored usage, for any number of hours, on a day of the week that falls on a Monday,Tuesday, or Wednesday. The parties will use best efforts to accommodate each other to permit variances for good cause, during the lease term, from these maximums, balancing the mutual benefit from profitable operations of the theatre, with the benefit to the City realized by City-Sponsored events. By way of illustration, it is anticipated that Lessee may from time to time seek to utilize a City-Sponsored User Day that has been previously scheduled by the City within the maximum as part of an ongoing City-Sponsored usage, and the City may or may not be able to grant this accommodation to Lessee depending on upcoming scheduling and availability; conversely, from time to time, the City may request an additional Prime User Day above the maximum, and/or additional Regular User Day(s) that Lessee may or may not be able to grant this accommodation to the City depending on upcoming scheduling and availability. The parties will seek in good faith to accommodate such requests. As set forth above, the forty-five City-Sponsored User Days shall be held with no rental fee to the City. Additionally, on up to thirty (30) of the forty-five (45) City-Sponsored User Days, Lessee shall waive any service charges and provide technical support, specifically, one technician and one house manager ("Staff Supported Days"). Additional Lessee staff for Staff Supported Days use shall be billed at Lessee's published rates. The maximum number of hours available for use on any day is 12 hours. If Lessor uses the property in excess of the above-referenced thirty (30) City-Sponsored User Days ("Non-Staff Supported Days"), Lessor shall pay for Lessee staff at Lessee's published rates. As set forth in Section 1.9.4.3 above, for the period May 2015 through May 2016, Lessor is scheduled to use the facility for 55 City-Sponsored User Days, The parties agree to waive the limit for City-Sponsored User Days for this time period, and the above formula will go into effect on June 1, 2016, unless otherwise agreed by the Parties. The remainder of this page is left blank; signatures to follow on the next page. 3 "LESSOR" "LESSEE" City of Renton Puget Sound Access k--By06114/12By 91-14) (P Denis Law, Mayor Name Jeffrey D. McCord Date . -//g/7.5--- ate /g/l.5--- , 2015. Title Executive Director Attest: 10* fl 14th , 2015. By '. i d 4 ,:k x r iite Jason �ISeth, Ci ii" erk AK�+, $ vf ,,,,,. Approved as to form: �i ' Niinmmum0 By 7 6.-*-,N1,,. 4