HomeMy WebLinkAboutAdden 1 LAG 03-002
Addendum#1-07
ADDENDUM TO BUILDING AND GROUND LEASE AGREEMENT
(City of Renton to AirO, Inc.)
THIS ADDENDUM to Lease Agreement LAG 03-002 is effective as of the date
of execution by the City of Renton, as indicated on the last page of this addendum.
RECITALS:
WHEREAS, AirO, Inc. has a Lease Agreement with the City of Renton, LAG-03-
002, executed on November 1, 2003; and
WHEREAS, on November 1, 2003, the building rental rate for the approximately
22,746 square feet of building area leased by AirO, Inc. was determined to be $0.095 per
square foot per month and continuing until November 1, 2006; and
WHEREAS, on November 1, 2006, and for the ensuing three (3) year period, the
building rental rate will be adjusted, using the Consumer Price Index-Urban, to a rate of
$0.103 per square foot per month for the 22,746 square feet of leased area, resulting in an
annual rental amount of$28,114.06 (22,746 x $0.103 x 12), and continuing until
November 1, 2009.
WHEREAS, on November 1, 2003, the land rental rate for the approximately
93,001 square feet of land area leased by AirO, Inc. was determined to be $0.3271 per
square foot per year and continuing until November 1, 2006; and
WHEREAS, on November 1, 2006 and for the ensuing three (3) year period, the
land rental rate will be adjusted, using a market appraisal study that was conducted on the
800 Building parcel, to a rate of$0.57 per square foot per year for the 93,001 square feet
of leased area, resulting in an annual rental amount of$53,010.57 (93,001 x $0.57), and
continuing until November 1, 2009; and
WHEREAS, due to the size of the increase in the ground lease rate,both parties
agree to a step increase to reach the adjusted rate of$0.57 per square foot per year. For
the first period, November 1, 2006 to November 1, 2007, the ground lease rate will be
$0.4486 per square foot per year(0.57—0.3271 /2 = 0.1215 + 0.3271 = $0.4486).
Effective November 1, 2007 the ground lease rate will be increased to $0.57 per square
foot per year for the remaining lease rate adjustment period, ending November 1, 2009.
NOW, THEREFORE, IT IS HEREBY AGREED AND COVENANTED BY AND
BETWEEN THE CITY OF RENTON AND AIRO, INC. AS FOLLOWS:
WITNESSETH:
1. Lessor and Lessee agree that the difference between the CPI-U of October 2003 to
September 25, 2006, is 8.21% (209.6 / 193.7 = 1.0821 or 8.21%). This results in a
monthly rate increase from $0.095 to $0.103 per square foot per month(0.095 x
1.0821 = $0.1028 or$0.103); and
Lease Agreement 03-002 ORIGINAL 1
City of Renton AirO,Inc.
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• • LAG 03-002
Addendum# 1—D7
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2. The Lessor and Lessee do hereby agree to an annual building rent of$28,114.06,
(22,746 x 0.103 = 2,342.84 x 12) for the 22,746 square feet identified in Lease
Agreement LAG 03-002.
3. Lessor and Lessee agree that the market appraisal study determined that the annual
ground rate is to be increased from $0.3271 to $0.57 per square foot per year.
4. The Lessor and Lessee do hereby agree to a step increase in the rental rate from
$0.3271 to $0.4486 for the period November 1, 2006 to November 1, 2007, and an
annual land rent of$41,720.25 (93,001 x 0.4486 = $41,720.25).
5. The Lessor and Lessee do hereby agree to a full increase in the rental rate from
$0.4486 to $0.57 for the period November 1, 2007 to November 1, 2009, and an
annual land rent of$53,010.57 (93,001 x 0.57 = 53,010.57) for the 93,001 square feet
identified in Lease Agreement LAG 03-002.
6. Lessor and Lessee do hereby agree that both the monthly building rent rate in
paragraph 1 and the annual land rent rate in paragraph 3 shall remain in effect until
November 1, 2009, and effective as of that date the rental rate shall automatically be
readjusted by and between the parties using the increase of the Consumer Price Index,
and for each three (3) year period thereafter. Minimum base rental for any extended
period shall not be less than the current annual building rent of$28,114.08, and
annual land rental of$53,010.57.
7. Lessor and Lessee do hereby further agree that the Consumer Price Index information
to be used for rental adjustments shall be the Consumer Price Index-Urban(CPI-U)
then in effect for all urban consumers, as published by the US Department of Labor
for the Seattle-Tacoma Metropolitan Area.
8. Lessor and Lessee do hereby further agree that at least thirty(30) days prior to the
Rental Adjustment Date either party shall, if they desire to adjust the base land rental
rate for the ensuing three (3) year period by a means other than the Consumer Price
Index-Urban, provide to the other party a written request for readjustment of the rental
rate pursuant to RCW 14.08.120(5).
9. All other terms and conditions of the original Lease Agreement shall remain in full
force and effect.
1
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AirO, Inc. CITY OF RENTON
a Washington Corporation a Municipal Corporation
Lease Agreement 03-002 2
City of Renton AirO, Inc.
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• LAG 03-002
Addendum# �
Kathy K olker
Mayor
Attest:
All n a 9 c r 66nlo'l i.
Title Bonnie Walton
City Clerk
J- ,27- ,4007
Date
Appr ved as to legal form
City Attorney
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Lease Agreement 03-002 3
City of Renton AirO,Inc.