HomeMy WebLinkAboutAdden 3 LAG 03-002
Addendum#03-10
ADDENDUM TO LEASE AGREEMENT
(City of Renton to AirO, Inc.)
THIS ADDENDUM to Lease Agreement LAG 03-002 is effective as of
November 1, 2009.
RECITALS:
WHEREAS, AirO, Inc. has a Lease Agreement with the City of Renton, LAG-03-
002, executed on November 1, 2003; and
WHEREAS, LAG-03-002 relates to the rental of a building as well as a parcel of
land, which have different rental rates; and
WHEREAS, on November 1, 2006, the building rental rate for the approximately
22,746 square feet of building space leased by AirO, Inc. was determined to be$0.103 per
square foot per month and continuing until November 1, 2009; and
WHEREAS, on November 1, 2009, and for the ensuing three(3) year period, the
building rental rate was adjusted,using the Consumer Price Index-Urban, to a rate of
$.112 per square foot per month for the 22,746 square feet of leased building area,
resulting in an annual rental amount of$30,570.62 (22,746 x $.112 x 12), and continuing
until November 1, 2012; and
WHEREAS, on November 1, 2006, the land rental rate for the approximately
93,001 square feet of land area leased by AirO, Inc. was determined to be $0.57 per
square foot per year and continuing until November 1, 2009; and
WHEREAS, in June 2008, a vehicle drive-lane striping project was completed for
the purpose of establishing a vehicle drive-lane along the west side of the Airport. The
northern-most portion of the vehicle drive-lane was positioned partially inside AirO,
Inc.'s leased area, due to distance and height restrictions; and
WHEREAS, as a result of the vehicle drive-lane striping project, AirO, Inc.'s lease
area was re-surveyed to determine the new square footage of leased ground area; and
WHEREAS, the lease survey map (see Attachment 1) determined that the leased
area was decreased from 93,001 square feet to 88,601 square feet; and
WHEREAS, on November 1, 2009, and for the ensuing three(3) year period, the
land rental rate was adjusted, using the Consumer Price Index-Urban,to a rate of$.62 per
square foot per year for the 88,601 square feet of leased area, resulting in an annual rental
amount of$54,932.62 (88,601 x $.62), and continuing until November 1, 2012.
ORIGINAL
Lease Agreement 03-002 1
City of Renton and AirO,Inc.
• • LAG 03-002
Addendum#03-10
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 August 2009, as
compared to August 2006, is 8.36% (227.138—209.6/209.6 = 0.0836 or 8.36%).
This results in a monthly building rate increase from $0.103 to $0.112 per square foot
(0.103 x 1.0836 = $0.112).
2. The Lessor and Lessee do hereby agree to an annual building rent of$30,570.62
(22,746 x 0.112 =2,547.55 x 12 = 30,570.62) for the 22,746 square feet identified in
Lease Agreement LAG 03-002.
3. Lessor and Lessee do hereby agree that the monthly building rent rate in Paragraph 1
shall remain in effect until November 1, 2012, 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, subject to
Paragraph 8,below. Minimum base rental for any period shall not be less than the
current annual rental of$30,570.62.
4. Lessor and Lessee agree that the difference between the CPI-U of August 2009,
compared to August 2006, is 8.36% (227.138 —209.6/209.6 =0.0836 or 8.36%).
This results in an annual ground rate increase from$0.57 to $0.62 per square foot
(0.57 x 1.0836 = $0.62).
5. The Lessor and Lessee do hereby agree to an annual ground rent of$54,932.62
(88,601 x 0.62 = 54,932.62) for the 88,601 square feet identified in Lease Agreement
LAG 03-002.
6. Lessor and Lessee do hereby agree that the annual ground rent rate in Paragraph 4
shall remain in effect until November 1, 2012, 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 subject to
Paragraph 8,below. Minimum base rental for any period shall not be less than the
current annual rental of$30,570.62.
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
Lease Agreement 03-002 2
City of Renton and AirO,Inc.
• LAG 03-002
Addendum#03-10
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.
AirO, Inc. CITY OF RENTON
a Washington Corporation a Municipal Corporation
IC
Denis Law
Mayor
Pyle Attest:St��e a Y/
Title Bonnie Walton
City Clerk
3•/g- eyWo
Date
Appro as to legal form
City Attorney
C:`• r
Lease Agreement 03-002 3
City of Renton and AirO,Inc.
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