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HomeMy WebLinkAboutAddendum - 7LAG-12-004 Amendment 7-25 AMENDMENT TO LEASE AGREEMENT (City of Renton to Bosair, LLC) THIS AMENDMENT to Lease Agreement LAG-12-004 is effective as of the date of execution by the City of Renton, as indicated on the last page of this amendment. RECITALS: WHEREAS, Bosair, LLC (hereinafter "Tenant") has a Lease Agreement with the City of Renton (hereinafter "Landlord"), known to Landlord and Te nant (collectively, the "Parties") as LAG-12-004, executed on October 1, 2012 and subsequently amended by and through its amendments , Amendment 01-14, Amendment 02-14, Amendment 03-15, Amendment 05-21, and Amendment 06-22; (hereinafter, collectively, the "Lease); and WHEREAS, Amendment No. 4 was never executed by the Parties; and WHEREAS, on November 1, 2021, the land rental rate was adjusted using Consumer Price Index-Urban (CPI-U), to a rate of $0.8637 per square foot per year for the 80,811.88 square feet of leased land, resulting in an annual rental amount of $69,804.84 (80,811.88 x $0.8637), and continuing until September 30, 2024; and WHEREAS, on March 27, 2019, the Airport conducted an independent market appraisal of all Airport leased areas to determine the fair market value (hereinafter "market appraisal"). The market appraisal determined the fair market ground lease rate to be $1.10 per square foot per year for all ground leases on the Airport; and WHEREAS, Landlord intends to use the most recent market appraisal study plus the CPI­ U to adjust the annual land rental rate to its fair market value; and WHEREAS, pursuant to LAG-12-004, section 4.c., in a letter dated April 4, 2024, Lessee was notified by hand delivered letter that the lease rate would be readjusted using a means other than the CPI-U; and WHEREAS, The Landlord and Tenant do hereby agree to amend section 4.a. of LAG 12- 004 to provide an annual land rent of $111,520.39 (80,811.88 x $1.38), PLUS leasehold excise tax , for the 80,811.88 square feet identified in lease LAG-12-004, effective October 1, 2024, through September 30, 2027; and WHEREAS, Tenant shall make a lump sum payment to Landlord of the back payment of rent at the new land rental rate for the period beginning on October 1, 2024, upon execution of this Amendment; and WHEREAS, all other terms and conditions of the Lease and the amendments thereto shall remain in full force and effect; Amendment to Lease LAG-12-004 City of Renton to Bosair, LLC 1 LAG-12-004, Adden #7-25 3/10/2025 Approved by Alex Tuttle via memo 1/21/2025