HomeMy WebLinkAboutAdden 7LAG 011-85
Addendum # 7-08
ADDENDUM TO LEASE AGREEMENT
(City of Renton to Kaynan, Inc.)
THIS ADDENDUM to Lease Agreement LAG 011-85 is effective as of the date
of execution by the City of Renton, as indicated on the last page of this addendum.
RECITALS:
WHEREAS, Kaynan, Inc. has a Lease Agreement with the City of Renton, LAG -
011 -85, executed on July 15, 1985; and
WHEREAS, in Addendum 01-88, the lessor established a common renegotiation
date for all ground leases to June 1, 1990; and
WHEREAS, on October 6, 1998, the land rental rate for the approximately 27,885
square feet of land area leased by Kaynan, Inc. was determined to be $0.27 per square
foot per year and continuing until June 1, 1999; and
WHEREAS, on August 9, 1999, the land rental rate for the approximately 27,885
square feet of land area leased by Kaynan, Inc. was determined to be $0.2931 per square
foot per year and continuing until June 1, 2002; and
WHEREAS, on August 9, 1999, in Addendum #04-99, the lease for the
approximately 27,885 square feet of land area leased by Kaynan, Inc. extended to July
14, 2010; and
WHEREAS, on December 2, 2002, the land rental rate for the approximately
27,885 square feet of land area leased by Kaynan, Inc. was determined to be $0.3276 per
square foot per year and continuing until June 1, 2005; and
WHEREAS, on June 1, 2005, the Lessee reduced the leasing area from 27,885
square feet to 27,085 square feet; and
WHEREAS, on June 1, 2005, the land rental rate for the approximately 27,085
square feet of land area leased by Kaynan, Inc. was adjusted using the Consumer Price
Index — Urban, to a rate of $0.3385 per square foot per year and continuing until June 1,
2008; and
WHEREAS, on March 25, 2005, the lease for the approximately 27,085 square
feet of land area leased by Kaynan, Inc. was extended to July 14, 2016; and
WHEREAS, in June 2007, the Airport contracted with Allen Brackett Shedd to
conduct an independent market appraisal of all Airport leased areas to determine that the
fair market value is $0.57 per square foot, per year for all ground leases on the Airport;
and
Lease Agreement 011-85 ORIGINAL
City of Renton Kaynan, Inc.
LAG 011-85
N%001Addendum # 7-08
WHEREAS, on February 26, 2008, the Lessee was notified that the land rental rate
would be adjusted, using a means other than Consumer Price Index, per item 5 of
Addendum #06-07 to LAG 011-85, and
WHEREAS, on February 26, 2008, the Lessee was notified by certified letter that
the fair market value for all ground leases had been set by the 2007 appraisal at a rate of
$0.57 per square foot per year, at the time of renegotiation.
NOW, THEREFORE, IT IS HEREBY AGREED AND COVENANTED BY AND
BETWEEN THE CITY OF RENTON AND KAYNAN, INC. AS FOLLOWS:
WITNESSETH:
1. Lessor and Lessee agree that the 2007 market appraisal study determined that the
annual ground rate is to be increased from $0.3271 to $0.57 per square foot per year.
2. The Lessor and Lessee do hereby agree to a full increase in the rental rate from
$0.3271 to $0.57 per square foot per year for the period June 1, 2008 through May 31,
2011, and an annual land rent of $15,438.45 (27,085 sq. ft. x $0.57 per foot/per year =
$15,438.45) for the 27,085 square feet identified in Lease Agreement LAG 011-85.
3. Lessor and Lessee do hereby agree that the rent rate in paragraph 2 shall remain in
effect until May 31, 2011, and effective as of that date, and for each three (3) year
period thereafter, the rental rate shall automatically be readjusted by and between the
parties using the increase of the Consumer Price Index. Minimum base rental for any
extended period shall not be less than the current annual land rental of $15,438.45.
4. 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.
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 three (3) 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.
Lease Agreement 011-85
City of Renton Kaynan, Inc.
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Kaynan, Inc.
a Washington Corporation
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Title
Lease Agreement 011-85
City of Renton Kaynan, Inc.
LAG 011-85
Addendum # 7-08
CITY OF RENTON
a Municipal Corporation
Denis Law
Mayor
Jason A. Seth, Deputy City Clerk
tolst-&g
Date
Appr d as to legal form
City Attorney