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AGENDA
Transportation Committee Regular Meeting
4:00 PM - Monday, November 21, 2016
Council Conference Room, 7th Floor, City Hall – 1055 S. Grady Way
1. LANDING GEAR WORKS LEASE AMENDMENT
a) AB - 1784
2. EMERGING ISSUES IN TRANSPORTATION
AB - 1784
City Council Regular Meeting - 07 Nov 2016
SUBJECT/TITLE: Amendment 03-16 to Lease LAG-13-005 with Landing Gear Works,
LLC.
RECOMMENDED ACTION: Refer to Transportation (Aviation) Committee
DEPARTMENT: Transportation Systems Division
STAFF CONTACT: Jonathan Wilson, Airport Manager
EXT.: 7447
FISCAL IMPACT SUMMARY:
The net revenue increase would be $9,715.06 per year.
SUMMARY OF ACTION:
Landing Gear Works, LLC has been leasing space in the 295 East Perimeter Road building (old control tower) since
September 1, 2013 for their aircraft parts manufacturing operation. They have been successfully managing their
business over the years and will be increasing the number of employees and equipment to keep up with industry
demands. Landing Gear Works is requesting an increase of 2,020 square feet of office space for additional employees
and 1,474 square feet of storage space for materials to their current leased area. The net effect of this lease
amendment is that Landing Gear Works will now be leasing the entire building at 295 East Perimeter Road. Up until now
they have only been leasing a portion of the building.
After executing this lease amendment, the annual increase to the Airport leasehold revenue will be $9,715.06.
EXHIBITS:
A. Amendment 03-16 to Lease LAG-13-005
STAFF RECOMMENDATION:
Authorize the Mayor and City Clerk to execute Amendment 03-16 to LAG-13-005 with Landing Gear Works,
LLC for a net revenue increase of $9,175.06 per year and approve an increase of 2,020 square feet of office
space and 1,474 square feet of storage space in the 295 East Perimeter Road building.
AGENDA ITEM #1. a)
LAG 13-005
Amendment 03-16
Lease Agreement LAG 13-005 1
City of Renton to Landing Gear Works LLC
AMENDMENT TO BUILDING LEASE AGREEMENT
City of Renton to Landing Gear Works, LLC
THIS AMENDMENT No. 3 to Lease Agreement LAG 13-005 is entered into as of
October 1, 2016 by the City of Renton, a Municipal Corporation (Landlord) and Landing
Gear Works, a limited liability company (Tenant) and amends that certain lease
agreement LAG 13-005 dated September 1, 2013.
RECITALS:
WHEREAS, the Tenant is currently leasing 6,710 square feet in the building
located at 295 East Perimeter Road (295 building), under Lease LAG 13-005 and
Amendments 1 & 2 thereto; and
WHEREAS, the total square footage of the first floor of the building is 10,204,
leaving 3,494 square feet of the building unleased; and
WHEREAS, Tenant desires to lease the entirety of the first floor of the building;
and
WHEREAS, Landlord desires to lease to Tenant the entirety of the first floor of
the building; and
WHEREAS, the currently leased 6,710 square feet in the 295 building is
composed of 4,102 square feet of office space (representing approximately 60% of the
leased space) and 2,608 square feet of storage space (representing approximately 40%
of the leased space); and
WHEREAS, the Tenant anticipates that the current ratio of office space to
storage space would continue to be representative of Tenant’s use of the entire first
floor of the building; and
WHEREAS, the Tenant would allocate 60 percent of the total square footage of
the first floor of the building to office space and 40 percent of the total square footage
of the first floor of the building to storage space; and
WHEREAS, the total office space in the first floor of the building would increase
to 6,122 square feet (10,204 x 60% = 6,122), and the total storage space in the first
floor of the building would increase to 4,082 square feet (10,204 x 40% = 4,082); and
AGENDA ITEM #1. a)
LAG 13-005
Amendment 03-16
Lease Agreement LAG 13-005 2
City of Renton to Landing Gear Works LLC
WHEREAS, the office lease rate is $4.50 per square foot per year for the 295
building; and
WHEREAS, the standard storage lease rate is $0.42406 per square foot per year.
NOW, THEREFORE, IN CONSIDERATION OF THE TERMS AND CONDITIONS HEREIN
CONTAINED AND FOR OTHER GOOD AND VALUABLE CONSIDERATION, THE RECEIPT
AND SUFFICIENCY OF WHICH IS HEREBY ACKNOWLEDGED, LANDLORD AND TENANT
AGREE TO AMEND THE LEASE, LAG 13-005 AS AMENDED, AS SET FORTH BELOW:
WITNESSETH:
1. The Landlord and Tenant do hereby agree to amend section 1.b. Legal Description
and Reservation of Easement to read as follows: Landlord hereby leases to Tenant,
and Tenant leases from Landlord for the term described in Section 3 below, the
entire first floor of the building located at 295 East Perimeter Road as shown in
Exhibit A attached hereto and incorporated herein by reference (hereinafter,
“Premises”) which includes 6,122 square feet of office space, and 4,082 square feet
of storage space.
2. The Landlord and Tenant do hereby agree to amend Section 4.a. Minimum Monthly
Rent to read as follows: Tenant shall pay to the Landlord a Minimum Monthly Rent
in the sum of Two Thousand Four Hundred Forty and 00/100 Dollars ($2,440.00),
PLUS Leasehold Excise Tax as described in Section 5, below, without deduction,
offset, prior notice or demand, payable promptly in advance on the first day of each
and every month. All such payments shall be made to the City of Renton 616 West
Perimeter Road, Unit A, Renton, Washington 98057. The Minimum Monthly Rent is
computed as follows:
(6,122 sq. ft.)($4.50 per sq. ft. per year) = $27,549
(4,082 sq. ft.)($0.42406 per sq. ft. per year) = $1,731.01
$27,549.00 + $1,731.01 = $29,280.01 / 12 months = $2,440.00 PLUS leasehold
excise tax
3. All other terms and conditions of the original Lease Agreement and Amendments
thereto, insofar as they are not inconsistent herewith, shall remain in full force and
effect.
AGENDA ITEM #1. a)
LAG 13-005
Amendment 03-16
Lease Agreement LAG 13-005 3
City of Renton to Landing Gear Works LLC
Landing Gear Works LLC CITY OF RENTON
a Washington Limited Liability Company a Municipal Corporation
___________________________ ________________________
Denis Law
Mayor
________________________
Title Jason Seth, City Clerk
____________________
Date
Approved as to legal form:
____________________
Lawrence J. Warren, City Attorney
AGENDA ITEM #1. a)
LAG 13-005
Amendment 03-16
Lease Agreement LAG 13-005 4
City of Renton to Landing Gear Works LLC
AMENDED EXHIBIT A
See attached.
AGENDA ITEM #1. a)
AGENDA ITEM #1. a)