HomeMy WebLinkAboutAdden 2 v.r.
PAG-97-003
Addendum#02-97
ADDENDUM TO OPERATING PERMIT AND LEASE AMENDMENT
(City of Renton to the Partnership of
Cliff Howard and Fred Bahr, aka Sky Harbor)
THIS ADDENDUM to Permit Agreement PAG-97-003 is effective as of the date
hereinbelow executed by the City of Renton.
RECITALS
WHEREAS, there currently exists a Lease Agreement LAG 006-84 (the"Lease")
originally between the City of Renton(the"City") as Lessor and Plane Space Investments,
Inc., as Lessee, the lessee's interest in which has previously been assigned with the
approval of the City to Puget Sound Industries, Inc.; and
WHEREAS, the initial term of the lease expires on August 31, 2006, but the lease
contains a provision which grants to the Lessee the option to extend the term of the lease
Lease for an additional ten(10) years to August 31, 2016, and
WHEREAS, the lessee under the Lease built a substantially immovable building on the
leased premises, and the Lease provides that the building on the leased premises shall
become the property of the City at the termination of the Lease, either in 2006 or after
expiration of the existing option in 2016; and
WHEREAS, Puget Sound Industries, Inc. seeks to assign its interest as lessee under the
Lease to Cliff Howard and Fred Bahr(hereinafter collectively referred to as ("Lessee")
and in connection with that assignment Lessee seeks to extend the term of the Lease to the
year 2026; and
WHEREAS, the City of Renton has adopted an Airport Master Plan which includes a goal
that all general aviation be consolidated on the west side of the Renton Municipal Airport,
and
WHEREAS, The Boeing Company("Boeing") currently leases space on the west side of
the airport through Lease LAG 677-65 for manufacturing purposes, which expires in the
year 2010 and will not be extended; and
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WHEREAS, The Boeing Company may desire to acquire the use of the premises that are
the subject of Lease LAG 006-84 before the anticipated expiration of the Lease in the year
2016; and
WHEREAS, the Lessee is willing, under certain conditions, to relocate onto a portion of
the premises currently occupied by The Boeing Company under lease LAG 677-65; and
WHEREAS, the City would support such a move, in concept, as it would be consistent
with the goal of the Airport Master Plan.
NOW, THEREFORE, IT IS HEREBY AGREED AND COVENANTED BY
AND BETWEEN THE CITY OF RENTON AND THE PARTNERSHIP OF CLIFF
HOWRD AND FRED BAHR, DOING BUSINESS ON THE RENTON
MUNICIPAL AIRPORT COLLECTIVELY AS SKY HARBOR, TO AMEND
PERMIT PAG 97-003 AS FOLLOWS:
WITNESSETH:
1. The terms of this Addendum shall modify and amend the Lease effective as of the date
on which the City approves the assignment of the Lease to Lessee.
2. Subject to the obligations assumed by Lessee herein and the provisions described
below, the term of the Lease is hereby extended to August 31, 2026.
3. In the event that The Boeing Company wishes to acquire Lessee's interest in this lease
prior to September 1, 2016, Lessee agrees to transfer its interest in this lease and buildings
to Boeing on terms to be mutually agreed upon between Lessee and The Boeing
Company. In the event mutual agreement on the terms of transfer cannot be reached,
Lessee agrees to submit the terms of transfer to mediation and, if necessary, binding
arbitration.
4. In the event that, prior to September 1, 2016, Lessee fails to fulfill its obligations under
this Agreement, the extension of the Lease provided by this Addendum shall be null and
void. Any failure by the Lessee to fulfill the obligations of either this addendum or the
other terms of this lease after September 1, 2016 shall not void the lease extension granted
by this Addendum, but the City shall retain all other remedies available to the lessor under
the lease.
5. In the event that, prior to September 1, 2016, Lessee conveys its interest in the Lease
and the improvements to The Boeing Company pursuant to this agreement, Lessee shall
have the first option to lease space on the premises that will be vacated by The Boeing
Company on the west side of the airport. If there is no conveyance of Lessee's interest to
The Boeing Company pursuant to this agreement, Lessee shall have no option to lease the
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premises that will be vacated by The Boeing Company on the west side of the airport.
The basic form of the ground lease shall be the standard form in use by the City at that
time. The rental rate shall be equivalent to the rental rate existing under the unexpired
lease transferred to The Boeing Company. The Lessee shall be entitled to a lease term of
its choice, not to exceed through the year 2036.
6. In the event the Lessee, its sublessee, or assignee, remains in the currently leased
premises, the term of this lease will not be extended, under any circumstances, beyond
August 31, 2026.
THE PARTNERSHIP CITY OF RENTON
Cliff ffoward, Partner JesjgWTanner, Mayor
ATTEST:
Fre hr, Partner
Ba
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Marilyn &I Vtersen, City Clerk
APPROVED
City Attorney
Pennits/HwdBhr3