HomeMy WebLinkAboutAdden 02 . LAG 10-001
n ' Amendment 02-13
AMENDMENT TO LEASE AGREEMENT
(City of Renton to The Boeing Company)
THIS AMENDMENT No. 2 to Lease Agreement LAG 10-001 is effective as of June
1, 2013.
RECITALS:
WHEREAS, The Boeing Company has a Lease Agreement with the City of Renton,
LAG 10-001, executed on June 1, 2010; and
WHEREAS, LAG 10-001 relates to the rental of buildings as well as parcels of
land, as shown in the table in Section.4.a. Minimum Monthly Rent; and
WHEREAS, on June 1, 2010, the initial monthly building and land rental amount
was determined to be $87,750.16, and continuing until the third (3rd) anniversary of the
Commencement Date, which is determined to be June 1, 2013; and
WHEREAS, on June 1, 2013, and for the ensuing three.(3) year period, the
building and land rental amount was adjusted using the Consumer Price Index-Urban,
resulting in an increase of six and three tenths percents (6.3%), and continuing until the
next Adjustment Date, which is determined to be June 1, 2016; and
WHEREAS, The Boeing Company has a Through The Fence Access Agreement,
under Lease LAG 10-001, Attachment A; and
WHEREAS, on June 1, 2010, the initial Through The Fence Access Fee was
determined to be an annual amount of$271,092.52, and continuing until third
anniversary of the Commencement Date, which is determined to be June 1, 2013; and
WHEREAS, on June 1, 2013, and for the ensuing three (3) year period, the
Through The Fence Access Fee was adjusted using the Consumer Price Index-Urban,
resulting in an increase of six and three tenths percents (6.3%), and continuing until the
next Adjustment Date, which is determined to be June 1, 2016.
ORIGINAL
Lease Agreement LAG 10-001 1
City of Renton to The Boeing Company
• LAG 10-001
Amendment 02-13
NOW,THEREFORE, IT IS HEREBY AGREED AND COVENANTED BY AND BETWEEN THE
CITY OF RENTON AND THE BOEING COMPANY AS FOLLOWS:
WITNESSETH:
1. Landlord and Tenant agree that the difference between the CPI-U of April 2013, as
compared to April 2010, is 6.3% (240.823/226.513 = 1.063 or 6.3%). This results in
a ground lease rate increase from $0.62 to $0.66 per square foot per year, and a
building lease increase of six and three tenths percent (6.3%).
2. Effective on the date of this Amendment No. 2, Section 4a. of LAG 10-001, is hereby
amended to read as follows:
4.a. Minimum Monthly Rent: Landlord and Tenant do hereby agree that
Tenant shall pay to Landlord a Minimum Monthly Rent in the sum of ninety
three thousand, three hundred forty four dollars and forty five cents
($93,344.45), which amount is one-twelfth of the Total Annual Rent shown in
the chart below, PLUS leasehold excise tax as described in Section 5 of lease LAG
10-001, without deduction, offset, prior notice or demand, payable promptly in
advance on the first day of each and every month during the Term. All such
payments shall be made to the City of Renton, Renton Municipal Airport, 616
West Perimeter Road-Unit A, Renton, Washington 98057. The Minimum
Monthly Rent is computed as follows:
Lease Agreement LAG 10-001 2
City of Renton to The Boeing Company
• LAG 10-001
Amendment 02-13
Exhibit Lease Parcel/Building Leased 2013 Rates Annual Rent
Description area (sq ft)
Exhibit A 5-08/5-09 Building and Land $379,179.54 $379,179.54
and Aircraft Position A-1
Exhibit B 5-50 Building (See note $163,276.80 $163,276.80
below)
Exhibit B Land and Aircraft Positions A- 132,896 $0.66/sq ft/yr $87,711.36
2 &A-3 (including land under
5-50 Building)
Exhibit C Aircraft Position A-4 through 467,809 $0.66/sq ft/yr $308,753.94
A-9 and Compass Rose
Exhibit D North Bridge Access 16,778 $0.66/sq ft/yr $11,073.48
Exhibit E Apron B 167,829 $0.66/sq ft/yr $110,767.14
Exhibit F Boeing Substation B-1 453 $0.66/sq ft/yr $298.98
Exhibit G 5-45 Building (building only) $21,366.30 $21,366.30
Exhibit G 5-45 Land (land only) 57,130 $0.66/sq ft/yr $37,705.80
Total Annual Rent= $1,120,133.34 plus Leasehold Excise Tax
Note relating to Exhibit B: The Parties acknowledge that in 2009 and 2010, the
Tenant made a substantial capital investment in improvements to the 5-50
Building, including numerous alterations to the structure as well as
improvements within the building. Tenant's financial investment as well as
these improvements and Tenant's use of the building as a paint hangar have
made this a unique building. Pursuant to provisions in the prior lease, Renton
will assume ownership of this building on June 1, 2010. So, while Landlord will
charge Tenant rent for its use, the Parties have agreed to treat this building
differently from other buildings in certain provisions of this Lease. The rental
rate for the 5-50 Building shall adjust according to the terms set out in this
Paragraph 4, EXCEPT that in those years when the Minimum Monthly Rent is
adjusted to the "then current market rent", pursuant to Paragraph 4.b.2, below,
the parties agree that the appraisal (or other form of analysis to determine fair
market rental) relating to the 5-50 Building shall evaluate the building as an
aircraft hangar, and as if the improvements made by Tenant in 2009-2010, and
described in Paragraph 4.d, below, had not been made. However, the Parties
agree that the condition of the building, as it is maintained by Boeing, shall be
Lease Agreement LAG 10-001 3
City of Renton to The Boeing Company
0 LAG 10-001
Amendment 02-13
considered in the appraisal (or other form of analysis) to determine the fair
market rental.
3. Effective on the date of this Amendment No. 2, Section 4. of Attachment A to LAG
10-001, is hereby amended to read as follows:
4. Payment of Access Fee: Boeing shall pay to City an annual Through The
Fence Access Fee in the annual amount of Two Hundred Eighty Eight Thousand
One Hundred Seventy One Dollars and Thirty Five cents ($288,171.35), payable.
in equal monthly installments on the first day of each month during the term of
the Lease (including extensions thereof), subject to increases as set out below.
5. All other terms and conditions of the original Lease Agreement and Amendments
thereto, insofar as they are not inconsistent herewith, shall remain in full force and
effect.
The Boeing Company CITY OF RENTON
a Washington Corporation a Municipal Corporation
Denis Law
Steven E. Sahiinger Mayor -.?
Authorized SignatDory
Title Bonnie Walton
City Clerk
Date
Appr ed as to legal form
City Attorney
I
Lease Agreement LAG 10-001 4
City of Renton to The Boeing Company