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Home My WebLink AboutAdden 07 LAG-10-001, Adden #7-15 AMENDMENT NO. 7 TO LEASE AGREEMENT LAG-10-001 (City of Renton to The Boeing Company) THIS AMENDMENT No. 7 to Lease Agreement LAG-10-001 ("Amendment No. 7") is entered into as i) day of ,Qkt,,ticx,/, 2015 by the City of Renton, a Municipal Corporation (Landlord) and The Boeing Company, a Delaware corporation (Tenant) and amends that certain lease agreement LAG-10-001 dated June 1, 2010 as amended to the date hereof(the "Lease"). RECITALS: 1. WHEREAS, the Tenant desires to lease one available parcel on Apron C commonly known as the "820 Parcel" as shown on Exhibit L for purposes of supporting its operations related to 737 production; and 2. WHEREAS, the Parties hereto agree that the 820 Parcel consists of 73,849 square feet; and 3. WHEREAS, the 820 Parcel consists of vacant land containing both asphalt and gravel areas resulting from the demolition of the former 820 Building; and 4. WHEREAS, the 820 Parcel is serviced by utility stubs for water, sewer, electricity, and gas; and 5. WHEREAS, the 820 Parcel has been leased by Landlord to Rainier Flight Service, LLC (hereinafter "Rainier") on a long term lease and Rainier has subleased that parcel back to Landlord until May 31, 2019; NOW,THEREFORE, IN CONSIDERATION OF THE TERMS AND CONDITIONS HEREIN CONTAINED AND FOR OTHER GOOD AND VALUABLE CONSIDERATION,THE RECEIPT AND SUFFICIENCY OF WHICH IS HEREBY ACKNOWLEDGED, LANDLORD AND TENANT AGREE TO AMEND THE LEASE AS SET FORTH BELOW: WITNESSETH: Landlord and Tenant agree to amend the Lease, in the following respects: A. Section 1.a. of the Lease is amended to read as follows: ORIGINAL LAG-10-001 AMENDMENT NO. 7 Page 2 of 8 1. GRANT OF LEASE: 1.a. Legal Description and Reservation of Easement: Landlord hereby leases to Tenant, and Tenant leases from Landlord for the Term described in Section 3 below, the parcels of land and, where applicable, the buildings and other improvements associated therewith, shown on the following Exhibits with the Lease Maps and Legal Descriptions and Boeing Building Numbers: Exhibit "A"—Lease Parcel 5-08/5-09, as Amended by Amendment No. 1 Exhibit "B"—Lease Parcel 5-50 and 5-50 Building Exhibit "C"—Lease Parcel Aircraft Positions A-4 through A-9 & Compass Rose Exhibit "D"—Lease Parcel North Bridge Access Revised Exhibit "E"—Amended Apron B Exhibit "F"— Boeing Substation B-1 Exhibit "G"—Lease Parcel Fuel Farm/Building 5-45 Exhibit "I"—Utility Installations Easement Agreement Exhibit "J"— Lease Parcel 760 Exhibit "K" - Lease Parcel 770 Exhibit "L"—Lease Parcel 820 C. Section 3 of LAG-10-001 shall be amended to add the following new section 3.d: 3.d. Term for the 820 Parcel: The term for the 820 Parcel shall commence on October 1, 2015 and terminate on May 31, 2019. 3.d.1. Option to Extend Term for the 820 Parcel: Tenant shall have no right to extend the term of this Amendment No. 7 for the lease of the 820 Parcel as provided herein. In no event will the lease of the 820 Parcel extend beyond the date of May 31, 2019. LAG-10-001 AMENDMENT NO. 7 Page 3 of 8 D. Section 4.a. of the Lease is amended to read as follows: 4. RENT AND FEES: 4.a. Minimum Monthly Rent: Tenant shall pay to Landlord a Minimum Monthly Rent in the sum of One Hundred Seven Thousand Five Hundred Seventy Eight dollars and Ninety Eight cents ($107,578.98), 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 the Lease 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, Airport Administration Office, Renton Municipal Airport, 616 West Perimeter Road, Unit A, Renton, Washington 98057. The Minimum Monthly Rent is computed as follows: Exhibit Lease Parcel/Building Leased 2010 Rates Annual Rent Description area (sq ft) Exhibit A 5-08/5-09 Building and $379,179.54 $379,179.54 Land and Aircraft Position A-1 Exhibit B 5-50 Building (See note $163,276.80 $163,276.80 below) Exhibit B Land and Aircraft 132,896 $0.66/sq $87,711.36 Positions A-2 &A-3 ft/yr (including land under 5- 50 Building) Exhibit C Aircraft Position A-4 467,809 $0.66/sq $308,753.94 through A-9 and ft/yr Compass Rose Exhibit D North Bridge Access 16,778 $0.66/sq $11,073.48 ft/yr Revised Amended Apron B 174,073 $0.66/sq $114,888.18 Exhibit E ft/yr Exhibit F Boeing Substation B-1 (area $0.66/sq $0 terminated ft/yr by lease) Exhibit G 5-45 Building (building $20,100 $21,366.30 only) Exhibit G 5-45 Land (land only) 57,130 $0.66/sq $37,705.80 LAG-10-001 AMENDMENT NO. 7 Page 4 of 8 ft/yr Exhibit I Utility Installations 22,147.74 33%of $4,872.50 Easement Agreement $0.66/sq ft/yr Exhibit J 760 Parcel 56,923 $0.66/sq $37,569.18 ft/yr Exhibit J 756 Building $2,965.68 $2,965.68 760 Building $10,710.00 $10,710.00 Exhibit K 770 Parcel 86,848 $0.66/sq $57,319.68 ft/yr Exhibit L 820 Parcel 73,849 $0.7252/sq $53,555.29 ft/yr Total Annual Rent= $1,290,947.73 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 of the Lease, 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 of the Lease, had not been made. However, the Parties agree that the condition of the building, as it is maintained by Boeing, shall be considered in the appraisal (or other form of analysis)to determine the fair market rental. E. Section 12 of LAG-10-001 shall be amended to add a new section 12.d, to read as follows: 12.d Tenant Improvements to 820 Parcel: Tenant will pave that portion of the 820 Parcel which is currently gravel with a minimum of 3 inches of asphalt and at a slope that accommodates the drainage of surface water in order to reduce the potential for foreign LAG-10-001 AMENDMENT NO. 7 Page 5 of 8 object debris on the adjacent apron and taxiway.The existing paved area of the 820 Parcel as of the date of execution of this amendment will not be used for employee vehicle parking. All vehicle parking on the 820 Parcel shall be on the landside of the perimeter security fence. Tenant will obtain Landlord's written consent prior to undertaking any improvements or installing any buildings, structures, or equipment on the 820 Parcel. F. Miscellaneous. This Amendment No. 7 will be effective immediately upon execution and delivery by the parties. This Amendment No. 7 may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute but one and the same instrument. This Amendment No. 7 shall be governed by the law of the State of Washington, without reference to its choice of law rules. This Amendment No. 7 supersedes any prior agreements, negotiations and communications, oral or written, with respect to the addition of the 820 Parcel to the Premises under the Lease and contains the entire agreement between, and the final expression of, the Landlord and Tenant with respect to the addition of the 820 Parcel to the Premises. No subsequent agreement, representation, or promise made by either party hereto, or by or to an employee, officer, agent or representative of either party hereto shall be of any effect unless it is in writing and executed by the party to be bound thereby. As amended by this Amendment No. 7, the Lease continues in full force and effect in accordance with its terms. On and after the date of this Amendment No. 7, the Lease shall be deemed amended by this Amendment No. 7 and all references in the Lease to "this Agreement" "this Lease" "herein" "hereof" and the like shall be deemed to be references to the Lease as amended by this Amendment No. 7. LAG-10-001 AMENDMENT NO. 7 Page 6 of 8 Executed by Landlord and Tenant as of the date first written above. The Boeing Company CITY OF RENTON a Washington Corporation a Municipal Corporation /4/10LI2MA-Sc.-47 Denis Law Mayor At :st: I' I Title Jaso Seth ty Clerk \ �y OF HT�2Date * SEAL *I �c .►, 66:4? pproved as to legal form -i� 7 X06'�\\• CfaA.O.A•tA..4e<?W6-4"‘g'%"--- City Attorney ACKNOWLEDGEMENT STATE OF WASHINGTON ) § COUNTY OF KING ryr.. On this G ^ day of --'I.Mr-A , 201K, before me, the undersigned notary public in and for the State of Washington, duly commissioned and sworn, personally appeared (NJ E 3/-41 n:S cso to me known to be the RaTif e fA of THE BOEING COMPANY, a Delaware corporation, the party that executed the oregoinginstrument, and acknowledged said instrument to be the free and voluntary act and deed of said party,for the uses and purposes therein mentioned, and on oath stated that he/she was duly authorized to execute the same. WITNESS my hand and official seal hereto the day and year in this Certificate first above written. 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