HomeMy WebLinkAboutAddendum - 2AMENDMENT TO UTILITY EASEMENT AGREEMENT
(City of Renton to AT&T Enterprises, LLC)
PAG-13-007
Amendment 2-25
TH IS AMENDMENT to Utility Easement Agreement PAG-13-007 ("Utility Easement"),
---~is effeetive asoHhe-dateof execution by the City of Renton, as indicated on the last page
of this Amendment.
RECITALS:
WHEREAS, AT&T Enterprises, LLC (hereinafter "Grantee") has a Utility Easement
with the City of Renton (hereinafter "Granter"), known to Granter and Grantee (collectively,
the "Parties") as PAG-13-007, executed on December 17, 2013 and subsequently amended
by and through Amendment 1-16 (hereinafter, collectively, the "Utility Easement"); and
WHEREAS, AT&T Corp has changed its name to AT&T Enterprises, LLC; and
WHEREAS, pursuant to Section 2.a of the Utility Easement, the initial term of the
Agreement was for a twelve (12) year period commencing on November 1, 2013, and
terminating on October 31, 2025; and
WHEREAS, on November 1, 2022, the Annual Easement Payment was adjusted
using Consumer Price Index-Urban ("CPI-U" or "Index"), to a rate of approximately $0.3633
(as rounded) per square foot per year for the 61,403.35 square feet of right-of way,
resulting in an annual charge of $22,312.20 (61,403.35 x $0.3633), and continuing until
October 31,2025;and
WHEREAS, Section 2.b of the Utility Easement provides that continued tenancy by
AT&T Enterprises, LLC will be on a year-to-year basis after October 31, 2025, commencing
upon the expiration of the initial term; and
WHEREAS, the Parties wish to renew the Utility Easement on an annual basis for the
upcoming year, subject to the terms as modified by this Amendment; and
WHEREAS, on March 14, 2025, Grantor 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 utility easement rate to be
$.50 per square foot per year; and
WHEREAS, Granter intends to use the most recent market appraisal to adjust the
Annual Easement Payment to its fair market value; and
WHEREAS, pursuant to PAG-13-007, Section 3.c, in a letter dated July 8, 2025,
Grantee was properly notified that the lease rate would be readjusted using a means other
than the CPI-U; and
Amendment to Utility Easement Agreement PAG-13-007
City of Renton to AT&T Enterprises, LLC
1
PAG-13-007, Adden #2-25
PAG-13-007
Amendment 2-25
WHEREAS, Grantor and Grantee do hereby agree to amend Section 3.a of the Utility
Easement to provide an Annual Easement Payment of $30,701.68 (61,403.35 x $.50), for
the 61,403.35 square feet identified in the Utility Easement, effective November 1, 2025
through October 31, 2026, or until the expiration of this Utility Easement, whichever occurs
first; and
WHEREAS, it is necessary and desirable to amend this Utility Easement by updating
certain sections as detailed below; and
WHEREAS, all other terms and conditions of the Utility Easement and the
Amendments thereto shall remain in full force and effect;
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, GRANTOR AND GRANTEE
AGREE TO AMEND THE UTILITY EASEMENT AND ADDENDA AS SET FORTH BELOW:
WITNESSETH:
1.Grantor and Grantee do hereby agree to renew and extend this Utility Easement
(PAG-13-007) for one (1) year, commencing on November 1, 2025 and ending on
October 31, 2026; and furthermore, the Parties agree that this Utility Easement
shall automatically renew annually thereafter on November 1 of each subsequent
calendar year unless terminated by either Party in accordance with the terms of this
Utility Easement.
2.All references to "AT&T Corp" in the Utility Easement are hereby changed to be
"AT&T Enterprises, LLC".
3.Granter and Grantee do hereby agree to amend Section 3 of PAG-13-007 as follows:
3.a. Annual Easement Payment: Grantee shall pay to Grantor an Annual Easement
Payment of $30,701.68 (61,403.35 x $.50), without deduction, offset, prior notice or
demand, payable promptly in advance on the first day of the following month, for
the 61,403.35 square feet identified as the Easement Area, effective as of
November 1, 2025, as follows:
(61,403.35 square feet)($.50 per square foot per year)= $30, 701.68/yr
3.b. Periodic Adjustment of Annual Easement Payment: The Annual Easement
Payment shall be subject to automatic adjustment on November 1 of each year
following the Commencement Date (which shall hereinafter be referred to as
"Adjustment Date") as follows:
Amendment to Utility Easement Agreement PAG-13-007
City of Renton to AT&T Enterprises, LLC
2
11/3/2025
Approved by Alex Tuttle via email 10/2/2025