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HomeMy WebLinkAboutAdden 7 Nese w LAG-005-91 Addendum#07-02 ADDENDUM TO LEASE AGREEMENT (City of Renton to Northwest Seaplanes, Inc) THIS ADDENDUM to Lease Agreement LAG 005-91 is effective as of the date of execution by the City of Renton, as indicated on the last page of this addendum. RECITALS: WHEREAS, on December 12, 1991, Lessee agreed to an annual rental rate of $0.30 per square foot per year, said rental rate was effective as of January 1, 1992, and continued until December 31, 1996, and WHEREAS, on January 1, 1996 the rental rate of$0.30 per square foot per year was to continue as the rental rate for the period January 1, 1996 through December 31, 2001, and WHEREAS, during July 1997, new land lease rates had been established by arbitration, and WHEREAS, the land rental rate for the land area leased by the Northwest Seaplanes, Inc. was determined to be $0.28 per square foot per year, and Northwest Seaplanes, Inc. was refunded $0.02 per square foot per year for the period January 1, 1992 through May 31, 1997, and WHEREAS, the land rental rate of$0.28 per square foot per year was to continue until December 31, 2001. Effective January 1, 2002, said rental rate has been readjusted by and between the parties to be effective for the ensuing five (5) year period of the lease. WHEREAS, the parties desire to make periodic adjustments to the land rental rate based upon the Consumer Price Index-Urban. NOW, THEREFORE, IT IS HEREBY AGREED AND COVENANTED BY AND BETWEEN THE CITY OF RENTON AND NORTHWEST SEAPLANES, INC. AS FOLLOWS: WITNESSETH: 1. The Lessor and Lessee do hereby agree to an annual land rent of$30,026.95 for the 91,545.57 square feet identified in Lease Agreement LAG 005-91. 2. Lessor and Lessee do hereby agree that the annual land rent rate in Paragraph 1 shall remain in effect until January 1, 2007, and, effective that date the rental rate shall automatically be readjusted by and between the parties as specified in paragraph 3 of the Lease Agreement, using the increase of the Consumer Price Index, and for each five (5) year period thereafter. Minimum base rental for any extended period, shall not be less than the current annual rental of$30,026.95. Lease Agreement 005-91 1 City or Renton to Northwest Seaplanes, Inc. 4 ,. SOY Niue LAG-005-91 Addendum#07-02 3. 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. 4. Lessor and Lessee do further agree that the difference between the CPI-U of January 1, 1997 to January 1, 2002, is 17.19% (186.8-159.4=27.4/159.4=0.1719 or 17.19%). This results in an annual rate increase from $0.28 to $0.328 per square foot ($30,026.95/91,545.57 = $0.328). 5. 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 five (5) 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). 6. All other terms and conditions of the original Lease Agreement shall remain in full force and effect. NORTHWEST SEAPLANES, INC. CITY OF RENTON a Washington Corporation a Municipal Corporation Mayor, Jesse Tanner City Clerk, Bonnie Walton /a- a-aoo-t Date ?f7/1-4-7-v...Q.4...— City Attorney Lease Agreement 005-91 2 City or Renton to Northwest Seaplanes,Inc.