HomeMy WebLinkAboutAddendum - 12ADDENDUM TO LEASE AGREEMENT
(City of Renton to Boeing Employees Flying Association Inc.)
LAG-87-001
Addendum 12-25
THIS ADDENDUM to Lease Agreement LAG-87-001, is effective as of the date of
execution by the City of Renton, as indicated on the last page of this addendum.
RECITALS:
WHEREAS, Boeing Employees Flying Association Inc. (hereinafter "Lessee") has a Lease
Agreement with the City of Renton (hereinafter "Lessor"), known to Lessor and lessee
(collectively, the "Parties") as LAG-87-001, executed on January 1, 1987 and subsequently
amended by and through its addendums, Addendum 01-88, Addendum 02-92, Addendum 03-
98, Addendum 04-98, Addendum 05-01, Addendum 06-05, Addendum 07-10, Addendum 08-10,
Addendum 09-15, Addendum 10-18 and Addendum 11-21 (hereinafter, collectively, the
"Lease"); and
WHEREAS, on January 1, 2020, the land rental rate was adjusted by arbitration, to a rate
of $1.13 per square foot per year for the 112,824 square feet of leased land, resulting in an
annual rental amount of $127,491.12 (112,824 x $1.13), and continuing until December 31,
2022;and
WHEREAS, on January 1, 2020, the land rental rate was adjusted by arbitration, to a rate
of $0.565 per square foot per year for the 6,736 square feet of joint use access driveway area
rate, resulting in an annual rental amount of $3,805.84 (6,736 x $0.565), and continuing until
December 31, 2022; and
WHEREAS, on March 14, 2025, the Lessor 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 $1.65 per square foot
per year; and
WHEREAS, Lessor intends to use the most recent market appraisal study to adjust the
annual land rental rate to its fair market value; and
WHEREAS, pursuant to the Lease, in a letter dated October 7, 2025, Lessee was notified
that the rental rate would be readjusted using a means other than the CPI-U; and
WHEREAS, Lessor and Lessee do hereby agree to amend paragraph 2 of the Lease to
provide an annual land rent of $191,716.80 {112,824 x $1.65 + 6,736 x $0.825), PLUS leasehold
excise tax, for the 119,560 square feet identified in the Lease, effective January 1, 2026,
through December 31, 2028; and
WHEREAS, lessee shall make a lump sum payment to Lessor of the back payment of
rent at the new land rental rate for the period beginning on January 1, 2026, upon execution of
this Addendum, if necessary; and
Addendum to Lease LAG-87-001 1
City of Renton to Boeing Employees Flying Association Inc.
LAG-87-001, Adden #12-25
LAG-87-001
Addendum 12-25
WHEREAS, it is necessary and desirable to amend this Lease by updating certain sections
as detailed below; and
WHEREAS, pursuant to Section 3.6.7 of the Airport Regulations and Minimum Standards,
Lessee is required to provide insurance coverage in a manner and form acceptable to the City
and its Risk Manager; and
WHEREAS, pursuant to Section 5 of the Lease, the buildings and improvements become
the property of the Lessor upon the expiration of the lease on January 1, 2030; and
WHEREAS, all other terms and conditions of the Lease and the addenda 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, LESSOR AND LESSEE AGREE TO AMEND THE LEASE AND
LEASE ADDENDA AS SET FORTH BELOW:
WITNESSETH:
1.Lessor and Lessee do hereby agree to amend paragraph 2 of LAG-87-001 to establish an
annual land rent of $191,716.80 {112,824 x $1.65 + 6,736 x $0.825), PLUS leasehold excise tax,
for the 119,560 square feet identified in lease LAG-87-001, effective January 1, 2026, through
December 31, 2028, as follows:
(112,824 square feet)($1.65 per square foot per year) = $186,159.60/yr;
Plus, (6,736 square feet)($0.825 per square foot per year)= $5,557.20/yr;
Total: $191,716.80
($191, 716.80/12 months= $15,976.40 per month) PLUS, leasehold excise tax.
2.Following the execution of this Addendum, if necessary, Lessee shall pay to Lessor a
lump sum of the back payment in an amount equal to the new Minimum Monthly Rent rate for
the period beginning January 1, 2026, and ending with the first day of the month AFTER this
Addendum 12-25 is entered into, PLUS Leasehold Excise Tax.
3.Effective on the date of this Addendum, Section 10 of LAG-87-001 is hereby amended to
read as follows:
10.INSURANCE:
10a. Personal Property: Lessee, at its expense, shall maintain in force during the
Term a policy of special form -causes of loss or all risk property insurance on all of Lessee's
alterations, improvements, trade fixtures, furniture and other personal property in, on or about
the Premises, in an amount equal to at least their full replacement cost. Any proceeds of any
such policy available to Lessee shall be used by Lessee for the restoration of Lessee's
alterations, improvements and trade fixtures and the replacement of Lessee's furniture and
Addendum to Lease LAG-87-001 2
City of Renton to Boeing Employees Flying Association Inc.
LAG-87-001
Addendum 12-25
other personal property. Any portion of such proceeds not used for such restoration shall
belong to Lessee. It is agreed that Lessor shall not be held liable in any manner for, or on
account of, any loss or damage to personal property of the Lessee, Lessee's invitees or other
persons, which may be sustained by fire or water or other peril, or for the loss of any articles by
burglary, theft or any other cause from or upon the Premises. It is acknowledged that Lessor
does not cover any of the personal property of Lessee, Lessee's invitees or other persons upon
the Premises through its insurance. Lessee, its invitees and other persons upon the Premises
are solely responsible to obtain suitable personal property insurance.
10b. Liability Insurance: Lessee, at its expense, shall maintain in force during the
Term the following types of insurance (or equivalents): a policy of commercial general liability
insurance (including premises liability), with the following minimum limits: $1,000,000 per
occurrence, $2,000,000 annual aggregate. Lessor shall be named as an additional insured on
Lessee's liability insurance solely with respect to the operations of the named insured (i.e.,
Lessee) and that coverage being primary and non-contributory with any other policy{ies)
carried by, or available to, the Lessor. The Lessee shall provide the Lessor with written notice of
any policy cancellation, within two business days of their receipt of such notice.
10c. Insurance Policies: Insurance required hereunder shall be written by a company
or companies acceptable to Lessor. Lessor reserves the right to establish and, from time-to
time, to increase minimum insurance coverage amounts. Insurance required herein shall
provide coverage on an occurrence basis, not a claims-made basis, except as may be authorized
in writing by the Parties. Notice of increased minimum insurance coverage amounts shall be
sent to the Lessee at least forty-five (45) days prior to the annual renewal date of the Lessee's
insurance. Prior to possession the Lessee shall deliver to Lessor documents, in a form
acceptable to Lessor, evidencing the existence and amounts of such insurance. Lessee shall,
prior to the expiration of such policies, furnish Lessor with evidence of renewal of such
insurance, in a form acceptable to Lessor. Lessee shall not do or permit to be done anything
which shall invalidate the insurance policies referred to above. Lessee shall forthwith, upon
Lessor's demand, reimburse Lessor for any additional premiums for insurance carried by Lessor
attributable to any act or omission or operation of Lessee causing such increase in the cost of
insurance. If Lessee shall fail to procure and maintain such insurance, then Lessor may, but shall
not be required to, procure and maintain the same, and Lessee shall promptly reimburse Lessor
for the premiums and other costs paid or incurred by Lessor to procure and maintain such
insurance. Failure on the part of the Lessee to maintain the insurance as required shall
constitute a material breach of the Lease, upon which the Lessor may, after giving five business
days notice to the Lessee to correct the breach, terminate the Lease or, at its discretion,
procure or renew such insurance and pay any and all premiums in connection therewith, with
any sums so expended to be repaid to the Lessor on demand.
10d. Waiver of Subrogation: Lessee and Lessor each waives any and all rights of
recovery against the other, or against the officers, employees, agents and representatives of
the other, for loss of or damage to such waiving Party or its property or the property of others
under its control, where such loss or damage is insured against under any insurance policy in
Addendum to Lease LAG-87-001 3
City of Renton to Boeing Employees Flying Association Inc.
LAG-87-001
Addendum 12-25
force at the time of such loss or damage. Lessee shall, upon obtaining the policies of insurance
required hereunder, give notice to the insurance carriers that the foregoing mutual waiver of
subrogation is contained in this Lease.
4. Effective on the date of this Addendum, Paragraph 22 of LAG-87-001 is hereby amended
to read as follows:
22.NOTICES: All notices or requests required or permitted under this Lease shall be
in writing; shall be personally delivered, delivered by a reputable express delivery service such
as Federal Express or DHL, delivered by email, or sent by certified mail, return receipt
requested, postage prepaid. Any notice given by hand, by courier, or by email shall be deemed
given when delivered and any notice sent by mail shall be deemed to have been received when
three days have elapsed from the time such notice was deposited in the U.S. mail. All notices or
requests to Lessor shall be sent to Lessor at Lessor's address set forth below and all notices or
requests to Lessee shall be sent to Lessee at Lessee's address set forth below:
Lessor's Address:
Lessee's Address:
City Clerk
Attn: Airport Director
1055 South Grady Way
Renton, Washington 98057
cityclerk@rentonwa.gov and rentonairport@rentonwa.gov
Boeing Employees Flying Association Inc.
attn: President
840 W Perimeter Road
Renton, WA 98057
befapresident@gmail.com
Either Party may change the address to which notices shall be sent by written notice to the
other Party.
5.All other terms and conditions of the original Lease Agreement and Addenda thereto,
insofar as they are not inconsistent herewith, shall remain in full force and effect.
Addendum to Lease LAG-87-001 4
City of Renton to Boeing Employees Flying Association Inc.
LESSEE:
BOEING EMPLOYEES FLYING
ASSOCIATION INC.
a Washington corporation
Bob Moore
President
Oc!( ��� � 3, 'l....'> '2..;;
Date
Addendum to Lease LAG-87-001
City of Renton to Boeing Employees Flying Association Inc.
LESSOR:
CITY OF RENTON
LAG-87-001
Addendum 12-25
a Washington municipal corporation
Armondo Pavone
Mayor
Date
Attest:
Jason A. Seth
City Clerk
Approved as to legal form:
City Attorney
5
11/18/2025
Approved by Alex Tuttle via email 10/24/2025