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Home My WebLink AboutAgendaHome TRANSPORTATION COMMITTEE January 13, 2015 10:00 a.m. 1. AGENDA a. Amendment #1 to LAG‐14‐005, with Rainier Flight Service, LLC b. Amendment #2 to LAG‐14‐005, with Rainier Flight Service, LLC 2. EMERGING ISSUES a. Capital Projects Update Transportation Committee - 13 Jan 2015 https://renton.civicweb.net/filepro/document/38138/Transportation Comm... 1 of 2 7/18/2019, 2:52 PM CITY OF RENTON COUNCIL AGENDA BILL Subject/Title: Rainier Flight Service, LLC Lease Amendment 2-14 to LAG 14-005 Meeting: REGULAR COUNCIL - 05 Jan 2015 Exhibits: Issue Paper Lease Amendment 2-14 to LAG 14-005 Map Submitting Data: Dept/Div/Board: Public Works Staff Contact: Jonathan Wilson, Airport Manager, x7477 Recommended Action: Refer to Transportation/Aviation Committee Fiscal Impact: Expenditure Required: $ 0 Transfer Amendment: $0 Amount Budgeted: $ 0 Revenue Generated: $0 Total Project Budget: $ 0 City Share Total Project: $ 0 SUMMARY OF ACTION: Rainier Flight Service, LLC is undertaking a project to remodel existing office space and add new office space within the hangar building. Financing for this tenant improvement is coming from Pacific Continental Bank. Pacific Continental Bank, as a condition of making the loan to Rainier Flight Service, has asked the City to sign a Landlord Subordination Agreement for certain collateral Rainier has used to secure the loan. The City has agreed to sign the Landlord Subordination Agreement in exchange for Rainier Flight Service agreeing to have their lease amended to include some additional language in Section 18 – Surrender of Premises. Rainier Flight Service has agreed to this request. Lease Amendment 2-14 revises Section 18 – Surrender of Premises. Specifically, this amendment modifies one sentence in that section. The existing sentence to be changed reads: “Tenant may remove from the Premises movable office furniture or trade fixtures put in at the expense of the Tenant.” The modified language will read: “Tenant shall remove from the Premises, upon request of the Landlord, movable office furniture or trade fixtures put in at the expense of Tenant.” STAFF RECOMMENDATION: Approve the lease language modification to Rainier Flight Service’s lease (LAG 14-005) concerning the removal of movable office furniture or trade fixtures and authorize the Mayor and City Clerk to sign Amendment 02-14. PUBLICWORKSDEPARTMENTMEMORANDUMDATE:December16,2014TO:EdPrince,CouncilPresidentMembersoftheRentonCityCouncilVIA:DenisLaw,MayorFROM:GreggZimmermaiministratorSTAFFCONTACT:JonathanWilson,AirportManager(extension7477)SUBJECT:RainierFlightService,LLCLeaseAmendment2-14toLAG14-005ISSUE:Shoul.dCouncilapprovemodifyingtheleaselanguagetoRainierFlightService,LLC’slease(LAG14-005)concerningtheremovalofmovableofficefurnitureortradefixtures?RECOMMENDATION:ApprovetheleaselanguagemodificationtoRainierFlightService,LLC’slease(LAG14-005)concerningtheremovalofmovableofficefurnitureortradefixturesandauthorizetheMayorandCityClerktosignAmendment02-14.BACKGROUND:RainierFlightService,LLCrecentlysignedalease(LAG14-005)tooccupythebuildingandassociatedrampspaceat800WestPerimeterRoad.RainierFlightServiceisundertakingaprojecttoremodelexistingofficespaceandaddnewofficespacewithinthehangarbuilding.FinancingforthistenantimprovementiscomingfromPacificContinentalBank.PacificContinentalBank,asaconditionofmakingtheloantoRainierFlightService,hasaskedtheCitytosignaLandlordSubordinationAgreementforcertaincollateralRainierFlightServicehasusedtosecuretheloan.TheCityhasagreedtosigntheLandlordSubordinationAgreementinexchangeforRainierFlightServiceagreeingtohavetheirleaseamendedtoincludesomeadditionallanguageinSection18—SurrenderofPremises.RainierFlightServicehasagreedtothisrequest. EdPrince,CouncilPresidentMembersoftheRentonCityCouncilPage2of2December16,2014LeaseAmendment2-14revisesSection18—SurrenderofPremises.Specifically,thisamendmentmodifiesonesentenceinthatsection.Theexistingsentencetobechangedreads:‘TenantmayremovefromthePremisesmovableofficefurnitureortradefixturesputinattheexpenseoftheTenant.”Themodifiedlanguagewillread:“TenantshallremovefromthePremises,uponrequestoftheLandlord,movableofficefurnitureortradefixturesputinattheexpenseofTenant.”ThelanguagemodificationhelpsprotecttheCityfrompossiblyneedingtoexpendfundstocleanouttheinsideofthehangarbuildingonceRainierFlightService’sleaseexpires.cc:JonathanWilson,AirportManagerJosefHarnden,TransportationAdministrativeSecretaryISusanCampbell-Hehr,AirportSecretaryIIH:\FiIeSys\AIR-Airport,TransportationServicesDivision\03Projects\01Tasks\AgendaBills\2014AgendaBiIls\AgBill-RainierFlightServiceLeaseAmendment2-14\issuepaper-RainierFlightServiceLeaseAmendment2-14.doc LAG14-005Amendment2-14AMENDMENTTOLEASEAGREEMENT(CityofRentontoRainierFlightServiceLLC)THISAMENDMENTtoLeaseAgreementLAG14-005iseffectiveasofthedateofexecutionbyTHECITYOFRENTON,aWashingtonmunicipalcorporation(hereinafter“Landlord”)andRainierFlightService,LLC,aWashingtonLimitedLiabilityCompany(hereinafter“Tenant”).RECITALS:WHEREAS,LandlordandTenantenteredintoaGroundLeasedatedNovember1,2014,LAG-14-005onthepremisesdescribedinExhibit“A”;andWHEREAS,TenantisseekingfinancingfromPacificContinentalBank;andWHEREAS,TenantisrequestingthatthecityexecuteaLandlordSubordinationAgreement(“SubordinationAgreement”)beexecutedamongPacificContinentalBank,theLandlord,andtheTenant;andWHEREAS,PacificContinentalBankwillnotagreetoremove,attheirexpense,CollateralasdefinedinExhibit1totheSubordinationAgreement.AndWHEREAS,theLandlordandTenantdesiretohavetheTenanttakeontheresponsibilityofremovingproperty,attheLandlord’sdiscretion,attheterminationoftheLease,NOW,THEREFORE,ITISHEREBYAGREEDANDCOVENANTEDBYANDBETWEENTHELANDLORDANDTENANTASFOLLOWS:WITNESSETH:A:Section18ofLeaseAgreementLAG14-005isherebyamendedtoreadasfollows:Section18.SURRENDEROFPREMISES:TenantshallquitandsurrenderthePremisesattheendoftheTerminaconditionasgoodasthereasonableusethereofwouldpermit,normalwearandtearexcepted.Alterations,additionsorimprovementswhichmaybemadebyeitherofthepartiesheretoonthePremises,exceptmovableofficefurnitureortradefixturesputinattheexpenseoftheTenant,shallbeandremainthepropertyoftheLandlordandshallremainonandbesurrenderedwiththePremisesasapartthereofattheterminationofthisLeasewithouthindrance,molestation,orinjury.TenantshallremovefromthePremises,uponrequestoftheLandlord,movableofficefurnitureortradefixturesputinattheexpenseofTenant.Tenantshall,atitssoleexpense,properlyandpromptlyrepairtoLandlord’sreasonablesatisfactionanydamageAmendment02-14toLAG14-005CityofRentontoRainierFlightServiceLLCORIGINAL tothePremisesoccasionedbyTenant’susethereof,orbytheremovalofTenant’smovableofficefurnitureortradefixturesandequipment,whichrepairshallincludethepatchingandfillingofholesandrepairofstructuraldamage.B.AllremainingprovisionsofLAG14-005,aspreviouslyamended,shallremaininfullforceandeffect,insofarasnotinconsistentherewith.RainierFlightService,[[CCITYOFRENTONaWashingtonLimitedLiabilityCorporationaMunicipalCorporation_-LL_GodonAlvordDenisLawMayorTitleCityClerkDateApprovedastolegalformCityAttorneySTATEOFWASHINGTONAmendment02-14toLAG14-0052of3CityofRentontoRainierFlightServiceLLC ss.CO U N T Y OF __ _ __ _ __ _IcertifythatIknoworhavesatisfactoryevidencethat___________________________isthepersonwhoappearedbeforeme,ands/heacknowledgedthats/hesignedthisinstrument,onoathstatedthats/hewasauthorizedtoexecutetheinstrumentandacknowledgeditasthe__ __ _ _ _ __ __ __ __ _ _ _ __ _of________________________,a______________,tobethefreeandvoluntaryactofsuch_ _ __ _ _ __ _ _ __ _ _ __ _fortheusesandpurposesmentionedintheinstrument.Datedthis_ ___dayof________________________,2014.[SignatureofNotary][PrintNameofNotary]NotaryPublicinandfortheStateofWashington,residingat____ _ _ _ _ ____Mycommissionexpires:_ _ _ _ _ ____Amendment02-14toLAG14-005°fCityofRentontoRainierFlightServiceLLC ss.COUN TY OF __ __ _ __ _ _IcertifythatIknoworhavesatisfactoryevidencethat______________________________isthepersonwhoappearedbeforeme,ands/heacknowledgedthats/hesignedthisinstrument,onoathstatedthats/hewasauthorizedtoexecutetheinstrumentandacknowledgeditasthe______________________of_________________________,a______________,tobethefreeandvoluntaryactofsuch__ __ _ __ __ _ __ __ _ _fortheusesandpurposesmentionedintheinstrument.Datedthis_ _ __dayof_________________________,2014.[SignatureofNotary][PrintNameofNotary]NotaryPublicinandfortheStateofWashington,residingat_ _ __ __ __ _ _ _Mycommissionexpires:__ __ __ _ _ _ _Amendment02-14toLAG14-005of3CityofRentontoRainierFlightServiceLLC S’CALU‘CC———--_____————.___0l_——3004”3____—--‘-7--—-r-—28/0ILGAI.DESCRIPTION:)ATI’)),’)hONOFTHE1)1/25”1)i’CTiC’,,‘,IOWNS11IP23NORTH,RANGE000/01’.TM1’)1,11)00)0)1)TI84,)I)AT)TIN.EJFSCIIII)TL)AS10))OW!)(TI)MENT’)N()AT‘III’SD))1)’)I5h3NTIT0041)1(101”SAIl)SCOTION7,01-AC))ROARS2’l)El.l’lTEEF‘NC)))1)10S0I)7)IWFSTQUAI(l)-))01’SAIl)SEC)ION7,-1)111)01NA’)!I’S?”),52)3’)FE)’)ToHI’HONOrI)?11)11)1TAX)WAY“A”THI]’NCFN0$41l’S”WAIlING‘lAS’IAXIII1T“A“.21)/I),lIEli:THENCE565’l1’07”W,1)1)50IEITTOTIllPOINT(OF’HFGINNING;1)1)-NC,CONII’4U)N504710’)7E4,231.01)TIE1,(‘4)NT)’NCI’i‘PI’430)1)5.3”TEAT,IHENCI’,ll’’’’ITl2’S,I?.)75TOO’,1)1)1)01N),134’,IDNE14153TIlT,THENCE1)UO’5$’i,,6C,.7511’T1’O‘)-ITSIIS’l’S’i’Jl/!),,‘7.s,s.,rooT,14150’)’1).5’,5))’5)%28510lOOT(C’11))’POINTornoGINNING))ONSAININGA)‘l1)1I17’IMA(I.EANTS))TSUANI‘FIT01)203ACRES.08327’I3LAG14-N7/2OFSEC.7,ALL.INTh.23N.,RCE.05E.,W.M.III,’,,1)£(FTC”)‘INCHloors,—,,-N003455T‘i-..‘5’‘—I—--NCT——\(pI‘r-a.\,,——,.I63ji’,,‘--‘$ir‘‘‘i-‘-5,1)7.3,,i,LR_.-_-‘‘—,.,.,‘F‘‘‘I[I—’-•]I—I4r’A0,C)1)-—‘‘I‘‘-‘‘I’I.I,A41’51t.,)3,-,‘,‘,;Oirr—‘.,,,i’;.—,,..,—‘ARCEL—.7I)I‘‘‘‘‘.,‘‘‘‘PARC)’],75))“11P5,1)45r,.PI—-Gio’i.’130‘SOT’O”‘,1f31acres0,‘I:‘I,.l‘I,•--‘-kINOTESHAS’,1:0SFAR)NGSISNuJ”48’53”)’,’04)11)700INTHEWASI-IINEITON000R0INATTSYSTEMNA))1)3(11511NONIH‘ONE,AEON).TI))C’LN)LIiLINTOF’THE411)101)A)111’O’4TNUNWA1,ASLGTABS,ISIIT))1)Y(IIIPUBLIC)E))”TS0)I’A)liMFNISINIl)!)MUNI’’0),,/11)50’?I1)1111‘,)CASIJRT’IAENTSIC!)14,55’,I5’.)IR)PFI’FORSICO1517-).1000/.1201TOTALSTATIONINSST.”j)’)i-,,,,‘l,’EI3,4CC10))SXCI’C.)ALi01,iR000SUI’O01”‘-151:,:,A))‘lAM/lAYMEASUREMENT000IPMLNIl)fltI/El)Il/SIITFNCOMPARESANDA0,IIJSTITDTOANA4011/ICTOI)TIIC’SUITVI’)(IA)IL’)”ATE))El/SI)IN),110)11)1HELASYEA),’-LEASEAGREEMENTCityofRentontoRaimcrFlightService.LLC———‘—-13051)0/’!)’1)1))_________—OENTE’?I)NEl,’UNIIAT__________—SECTIONIINC00,1STLINEPOUND0)1/FlIERSECTIONCOlil-lEIlPOUND5).CSONCORNEP‘j\‘30) CITY OF RENTON COUNCIL AGENDA BILL Subject/Title: Amendment 01-14 to Rainier Flight Service LLC (LAG 14-005) Meeting: REGULAR COUNCIL - 05 Jan 2015 Exhibits: Issue Paper Amendment 01-14 to LAG 14-005 Rainier Flight Service, LLC Map Submitting Data: Dept/Div/Board: Public Works Staff Contact: Jonathan Wilson, Airport Manager, x7477 Recommended Action: Refer to Transportation/Aviation Committee Fiscal Impact: Expenditure Required: $ Transfer Amendment: $ Amount Budgeted: $ Revenue Generated: $($2,271) Total Project Budget: $ City Share Total Project: $ SUMMARY OF ACTION: Rainier Flight Service, LLC leases the 800 Building for flight instruction and aircraft maintenance operations. Rainier Flight Service has agreed to allow the use of part of their 800 Building for storage of Airport equipment, with a corresponding monthly leasehold reduction. An amendment has been signed by Rainier Flight Service allowing the Airport to use three separate storage areas, each with a different lease period. Hangar Bay Space 1 terminates on April 1, 2015; Hangar Bay Space 2 terminates on January 31, 2015; and the Northwest Corner Room will continue on a month-to-month basis. Their lease terminates on September 30, 2024. STAFF RECOMMENDATION: Approve Amendment 01-14 to Rainier Flight Service’s lease (LAG 14-005) for the use of a portion of the leased area for Airport equipment storage with a corresponding monthly rental reduction, and authorize the Mayor and City Clerk to sign the lease amendment. PUBLIC WORKS DEPARTMENT M E M O R A N D U M DATE:December 16, 2014 TO:Ed Prince, Council President Members of the Renton City Council VIA:Denis Law, Mayor FROM:Gregg Zimmerman, Administrator STAFF CONTACT: Jonathan Wilson (ext. 7477) SUBJECT:Amendment 01-14 to Rainier Flight Service LLC (LAG 14-005) ISSUE: Should the Council approve Amendment 01-14 to Rainier Flight Service’s lease (LAG 14- 005) for the use of a portion of the leased area for Airport equipment storage and a corresponding leasehold reduction? RECOMMENDATION: Approve Amendment 01-14 to Rainier Flight Service’s lease (LAG 14-005) for the use of a portion of the leased area for Airport equipment storage with a corresponding leasehold reduction, and authorize the Mayor and City Clerk to sign the lease amendment. BACKGROUND: Rainier Flight Service, LLC leases the 800 Building under lease LAG 14-005, with an expiration date of September 30, 2024. Rainier Flight Service LLC has agreed to allow the Airport to store snow removal equipment in the 800 Building on a month-to-month basis, and other equipment for a defined term. Rainier Flight Service, LLC will receive a reduction in their monthly leasehold for the square footage that the Airport uses. There are three separate storage areas in the 800 Building being used to store Airport equipment. Hangar Bay 1 has a termination date of April 1, 2015 and a leasehold reduction of $91.74 per month; Hangar Bay 2 with a termination date of January 31, 2015 and a leasehold reduction of $59.86 per month; and the Northwest Corner Room with a month-to-month term and a leasehold reduction of $161.33 per month. The three combined storage areas will result in a revenue reduction of approximately $2,271.00 in 2015. The materials in Hangar Bay spaces 1 and 2 will be Ed Prince, Council President Members of the Renton City Council Page 2 of 2 December 16, 2014 moved into the Northwest Corner Room as soon as an exterior roll-up door is installed in early 2015. The Airport has spent the past few years acquiring a fleet of snow removal equipment. In order to keep the equipment in an operable condition, indoor storage is needed. The Airport shop at the 790 Building does not have sufficient space for storing the larger snow removal equipment. At some point in the future if Rainier Flight Service, LLC’s business grows and they request use of the Northwest Corner Room, the City will have to find an alternative location for storing the snow removal equipment. This is not expected to be for at least three years. cc:Iwen Wang, Administrative Services Administrator Doug Jacobson, Deputy PW Administrator – Transportation Jonathan Wilson, Airport Manager Hai Nguyen, Finance Analyst Josef Harnden, Transportation Administrative Secretary LAG14-005Amendment01-14AMENDMENTTOBUILDINGLEASEAGREEMENTCityofRentontoRainierFlightService,LLCTHISAMENDMENTNo.1toLeaseAgreementLAG14-005isenteredintoasofNovember1,2014bytheCityofRenton,aMunicipalCorporation(Landlord)andRainierFlightService,alimitedliabilitycompany(Tenant)andamendsthatcertainleaseagreementLAG14-005,datedNovember1,2014.RECITALS:WHEREAS,underSLAG14-005datedNovember1,2014,theCityofRenton(Landlord)hadleasedtoRainierFlightServicesLLC(Tenant)certainlandareaandbuildingspaceontheRentonMunicipalAirport,Renton,Washington,untilSeptember30,2024;andWHEREAS,LandlordhasrequestedandTenanthasagreedtoallowLandlordtousethree(3)separatestorageareasinthebuildingleasedbytheTenantforthepurposeofAirportequipmentstorage,asshownonExhibit“B”(800Building),whichisattachedheretoandincorporatedhereinbythisreference;andWHEREAS,thethree(3)spacesaredefinedas:HangarBaySpace1,consistingof754squarefeet;HangarBaySpace2,consistingof492squarefeet;andNorthwestCornerRoom,consistingof1,326squarefeet.NOW,THEREFORE,INCONSIDERATIONOFTHETERMSANDCONDITIONSHEREINCONTAINEDANDFOROTHERGOODANDVALUABLECONSIDERATION,THERECEIPTANDSUFFICIENCYOFWHICHISHEREBYACKNOWLEDGED,LANDLORDANDTENANTAGREETOAMENDTHELEASEASSETFORTHBELOW:WITNESSETH:LandlordandTenantagreetoamendtheLease,inthefollowingrespects:Threenewparagraphs,a.1.,a.2.,anda.3.,areaddedtoSection4oftheLeaseasfollows:4.RENT/FEES/CHARGES:4.a.1.RentalOffsetforHangarBaySpace1:InconsiderationofTenantpermittingLandlord’suseofHangarBaySpace1,asdepictedinExhibitB,attachedheretoandAmendment01-14toLAG14-005QR161NALCityofRentontoRainierFlightServiceLLC LAG14-005Amendment01-14incorporatedbythisreference,beginningonNovember1,2014,andendingonApril1,2015,LandlordshallapplyacreditofNinetyOnedollarsandSeventyFourcents($91.74)permonthtowardtheMinimumMonthlyRentpaidbytheTenantundertheLease,asamendedherein,4.a.2.RentalOffsetforHangarBaySpace2:InconsiderationofTenantpermittingLandlord’suseofHangarBaySpace2,asdepictedinExhibitB,beginningonNovember1,2014,andendingonJanuary31,2015,LandlordshallapplyacreditofFiftyNinedollarsandEightySixcents($59.86)permonthtowardtheMinimumMonthlyRentpaidbytheTenantundertheLease,asamendedherein.4.a.3.RentalOffsetforNorthwestCornerRoom:InconsiderationofTenantpermittinglandlord’suseofNorthwestCornerRoom,asdepictedinExhibitB,beginningonNovember1,2014,andcontinuingonamonth-to-monthbasisuntilonepartygivestheotherpartyatleastthirty(30)days’noticetoterminate,LandlordshallapplyacreditofOneHundredSixtyOnedollar5andThirtyThreecents($161.33)permonthtowardtheMinimumMonthlyRentpaidbytheTenantundertheLease,asamendedherein.AllothertermsandconditionsoftheoriginalLeaseAgreementandAmendmentsthereto,insofarastheyarenotinconsistentherewith,shallremaininfullforceandeffect.RainierFlightServicesLICCITYOFRENTONaWashingtonLimitedLiabilityCompanyaMunicipalCorporationT---LD_ _ __SdDenisLawMayorTitleJasonSethCityClerkDateAmendment01-14toLAG14-005CityofRentontoRainierFlightServiceLLC LAG14-005Amendment01-14ApprovedastolegalformCityAttorneyEXHIBITBAniendment01-14toLAG14-0053CityofRentontoRainierFlightServiceLLC “8OBuilding”800WestPerimeterRoadRenton,WA98057North—EXHIBITBRentonAirport/ClaytonScottField 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