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LAG 84-006 Adden #14-12
ADDENDUM TO LEASE AGREEMENT
(City of Renton to Aerodyne LLC)
THIS ADDENDUM to Lease Agreement LAG 84-006 is effective as of September 1,
2011.
RECITALS:
WHEREAS, Aerodyne LLC has a Lease Agreement with the City of Renton, LAG 84-
006, executed on September 1, 1984; and
WHEREAS, on September 1, 2008,the land rental rate for the approximately
77,710 square feet of land area leased by Aerodyne LLC was determined to be $0.57 per
square foot per year and continuing until September 1, 2011; and
WHEREAS, on September 1, 2008,the land rental for the parking lot area,
consisting of 5,984 square feet leased by Aerodyne LLC was determined to be $0.38 per
square foot per year and continuing until September 1, 2011; and
WHEREAS, in February 2009,the Airport contracted with Allen Brackett Shedd to
conduct 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 $0.62 per square foot per year for all ground leases
on the Airport; and
WHEREAS, using the 2009 market appraisal rate of$0.62 and calculating the
percentage increase from the ground lease rate in effect until September 1, 2011, of
$0.57,the percentage increase is nine (9) percent($0.57/$0.62 = .091 or 9%). The land
rental for the parking lot area of 5,984 square feet was increased by 9%, and the new
rate was determined to be $0.41 ($0.38 x 1.09= $0.41) per square foot per year; and
WHEREAS, pursuant to LAG 84-006 Addenda 13-09, in a letter dated June 27,
2011, Lessee was notified by certified letter that the lease rate would be readjusted
using a means other than the Consumer Price Index-Urban; and
WHEREAS, on September 1, 2011, and for the ensuing three (3)year period,the
land rental rate was adjusted, using the market appraisal,to a rate of$0.62 per square
foot per year for the 77,710 square feet of leased area, resulting in an annual rental
amount of$48,180.20 (77,710 x$0.62), plus leasehold tax, and continuing until August
31, 2014; and
WHEREAS, on September 1, 2011, and for the ensuing three (3)year period,the
land rental rate of the parking lot area was adjusted, using the percentage increase from
the market appraisal of$0.57 to the current market appraisal rate of$0.62 per square
foot,that rate being$0.41 per square foot per year for the 5,984 square feet of parking
Lease Agreement 84-006A 1
City of Renton to Aerodyne LLC OR
I G I N A L
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lot area, resulting in an annual rental amount of$2,453.44(5,984 x $0.41), plus leasehold
tax, and continuing until August 31, 2014; and
NOW,THEREFORE, IT IS HEREBY AGREED AND COVENANTED BY AND BETWEEN THE
CITY OF RENTON AND AERODYNE LLC AS FOLLOWS:
WITNESSETH:
1. Paragraph 2 of LAG 84-006 is hereby amended to reflect that the Lessor and Lessee
do hereby agree to an annual land rent of$48,180.20(77,710 x$0.62), plus leasehold
tax,for the 77,710 square feet identified in lease LAG 84-006, effective September 1,
2011, and continuing until August 31, 2014.
2. Addendum 13-09 to LAG 84-006 is hereby amended to reflect that the Lessor and
Lessee do hereby agree to an annual land rent of$2,453.44 (5,984 x $0.41), plus
leasehold tax,for the 5,984 square feet of parking lot identified in lease LAG 84-006
Addendum 13-09, effective September 1, 2011, and continuing until August 31, 2014.
3. 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.
Aerodyne LLC CITY OF RENTON
a Washington Limited Liability Company a Municipal Corporation
Denis Law
Mayor //
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Title Bonnie Walton
City Clerk
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ate
Appr ed as to legal form
City Attorney
Lease Agreement 84-006 2
City of Renton to Aerodyne LLC ,{