HomeMy WebLinkAboutLease LAG - 93-004
LEASE AGREEMENT
City of Renton to BHC, Inc.
(File: 850BIdg7.doc)
THIS IS A LEASE AGREEMENT between THE CITY OF RENTON, a Washington
municipal corporation ("Lessor"), and BHC, Inc., a Washington corporation("Lessee").
IN CONSIDERATION of the covenants and agreements hereinafter set forth, the parties
agree as follows:
1. GRANT OF LEASE:
1.1. Legal Description: A plat of ground, the majority of which is paved with concrete
and asphalt, located on the west side of the Renton Municipal Airport between West Perimeter
Road and the West side Airplane Parking Restriction Line, containing 48,778.51 square feet,
more or less, being the real property described in Exhibit "A" (Legal Description), and illustrated
on Exhibit "B" (Lease Map) attached hereto and made a part hereof as is fully set forth herein(the
"Premises").
SUBJECT TO:
(1) Easements, restrictions and reservations of record and as further set forth
herein;
(2) Such rules and regulations as now exist or may hereafter be promulgated
by the Lessor from time to time, including the Airport's Minimum
Standards which are incorporated herein by this reference, and Lessors
standards concerning operation of public aviation service activities from the
Airport; and
(3) All such non-discriminatory charges and fees for such use as may be
established from time to time by Lessor; and
TOGETHER WITH the privilege of Lessee to use the public portion of the
Airport, including runway and other public facilities provided thereon, on a
non-exclusive basis.
1.2. No Conveyance of Airport: This Lease Agreement shall in no way be deemed to
be a conveyance of the Airport, and shall not be construed as providing any special privilege for
any public portion of the Airport except as described herein. The Lessor reserves the right to
lease or permit the use of any portion of the Airport for any purpose deemed suitable for the
Airport, except that portion that is leased hereby.
LEASE AGREEMENT- I Ci of Renton to BHC Inc. ORIGIN4,1
City ,
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1.3. Nature of Lessor's Interest: It is expressly understood and agreed that Lessor
holds and operates the Airport, and the Premises under and subject to a grant and conveyance
thereof to Lessor from the United States of America, acting through its Reconstruction Finance
Corporation, and subject to all the reservations, restrictions, rights, conditions, and exceptions of
the United States therein and thereunder, which grant and conveyance has been filed for record in
the office of the Recorder of King County, Washington, and recorded in Volume 2668 of Deeds,
Page 386; and further that Lessor holds and operates said airport and premises under and subject
to the State Aeronautics Acts of the State of Washington (chapter 165, laws of 1947), and any
subsequent amendments thereof or subsequent legislation of said state and all rules and
regulations lawfully promulgated under any act or legislation adopted by the State of Washington
or by the United States or the Federal Aviation Administration. It is expressly agreed that the
Lessee also accepts and will hold and use this lease and the Premises subject thereto and to all
contingencies, risks, and eventualities of or arising out of the foregoing, and if this lease or the
period thereof or any terms or provisions thereof be or become in conflict with or impaired or
defeated by any such legislation, rules, regulations, contingencies or risks, the latter shall control
and, if necessary, modify or supersede any provision of this lease affected thereby, all without any
liability on the part of or recourse against the Lessor in favor of Lessee, provided that Lessor does
not exceed its authority under the foregoing legislation, rules and regulations.
1.4. Future Development/Funding: Nothing in this lease contained shall operate or be
construed to prevent or hinder the future development, improvements, or operation of Airport by
Lessor, its agents, successors or assigns, or any department or agency of the State of Washington
or of the United States, or the consummation of any loan or grant of federal or state funds in aid
of the development, improvement, or operation of the Renton Airport.
1.5 Title to Improvements: As further consideration for this Lease, it is stipulated and
agreed that at the expiration of the initial term or any extended term of this Lease or at any other
earlier termination of this Lease, all structures and all improvements of any character whatever
installed on the leased premises shall be and become the property of the Lessor City and title
thereto shall pass and revert to Lessor City at such termination, but in any case not later than
January 1, 2030, and none of such improvements now or hereafter placed on the leased premises
shall be removed therefrom at any time without Lessor's written consent. The Lessor shall have
the alternative, at its option, to require Lessee to remove any and all improvements and structures
from the demised premises and repair any damage caused thereby, at Lessee's expense.
2. TERM:
2.1. Initial Term: The term of this lease shall be for a period commencing on the date
of signature by the Mayor and City Clerk of the City of Renton, contained immediately after
paragraph 31 herein, and terminating at midnight December 31. 2019.
2.2. Extended Term:
2.2.1. Grant of Option to Extend Term: In the event that Lessee has fully and
faithfully complied with all the terms and conditions of this Lease Agreement, then in such event
Lessor grants unto Lessee the right and option to renew or extend this Lease, under the same
LEASE AGREEMENT-2
City of Renton to BHC,Inc. ORIGINAL
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terms and conditions provided herein, for two further periods of five (5) years each. The first
extended term, if elected, shall commence on the expiration of the initial term hereof and
terminate at midnight December 31, 2024. The second extended term, if elected, shall commence
on the expiration of the first extended term and terminate at midnight December 31, 2029.
2.2.2. Rental: The amount of rental to be paid during such extended term shall be
computed in accordance with the provisions of Paragraph 3.2 as if the extended term was a part
of the initial term.
2.2.3. Notice: Notice of Lessee's intent to exercise the option to extend the term
of this lease shall be the notice specified in Paragraph 9.5. Upon the exercise of this option to
extend the term of this lease, the parties shall execute an addendum acknowledging the extension
of the term of this lease and the new termination date of this lease.
3. RENTAL:
3.1. Initial Rental: As rental for the above-described premises during initial lease term,
Lessee shall pay unto Lessor a monthly rental in the sum of One Thousand Two Hundred Ninteen
and 46/100 Dollars ($1,219.46), plus Leasehold Excise Tax as described in Paragraph 3.6 below,
payable promptly in advance on the first day of each and every month. All such payments shall be
made to the Director of Finance, Municipal Building, Renton, Washington. The initial rental is
computed as follows, and is based upon an estimated ground lease area (which the parties
stipulate to be accurate) of 48,778.57 square feet.
Rental Payment Schedule
48,778.57 sq. ft. @ $.30/sq. ft. per year = $14,033.57 annual rental
divided by 12 = $1,219.46 rental per month, plus Leasehold Excise Tax
per Paragraph 3.6 below.
3.2. Adjustment of Rental:
3.2.1. Rental Adjustment Date: The initial rental, as specified above, shall
continue for three years from the effective date of this lease as specified in paragraph 2.1 above.
However, the Lessor retains the option of renegotiating every five (5) years, at its sole discretion.
Effective as of said date, and every consecutive three (3) years, said rental rate as hereinabove
specified shall be readjusted by and between the parties to be effective for each ensuing three (3)
years. Unless the Lessor notifies Lessee in writing not less than sixty (60) days of the end of the
three (3) year period following the effective date of this lease, and each three (3) year period
thereafter, that Lessor intends to renegotiate the rent, Lessor shall be deemed to have waived its
right to renegotiate the rent at the end of such three (3) year period, and the next opportunity for
the parties to renegotiate the rent shall be at the end of the five (5) year period following the
effective date of this lease,and each five (5) year period thereafter, as the case may be. Lessors
election to renegotiate the rent at the end of any five year term shall not be deemed a waiver of
Lessor's right to renegotiate the rent at the end of any subsequent three (3) year term. Minimum
base rental for any extended period shall not be less than the aforespecified rental of$1,219.46
LEASE AGREEMENT-3
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City of Renton to BHC, Inc.
per month, plus Leasehold Excise tax.
3.2.2. Notice of Request for Readjustment of Rental: At least sixty (60) days
prior to the Rental Adjustment Date either party shall, if they shall desire to adjust the rental rate
for the ensuing three (3) or five (5) year period, provide to the other party a written request for
readjustment of the rental rate pursuant to R.C.W. 14.08.120(5).
3.2.3. Arbitration: If the parties are unable to agree upon such adjusted rental by
negotiation for a period of thirty (30) days, then the parties shall submit the matter of the adjusted
rental for the ensuing period to arbitration under the following procedures:
3.2.3.1. Lessor shall select one arbitrator and Lessee shall select
one. The two so chosen, if unable to agree within a period of thirty (30) days after such
appointment, shall select a third arbitrator. The decision of the majority of such arbitrators shall
be final and binding upon the parties hereto.
3.2.3.2. The arbitrators shall be experienced real estate appraisers
and be knowledgeable in the field of comparable airport rentals and use charges in King County
and shall give due consideration to any change in economic conditions from the preceding rental
period.
3.2.3.3. Leasehold improvements made by the Lessee shall not be
considered as part of the leased premises for the purpose of future adjustments or readjustments
of the rental rates.
3.2.3.4. The arbitrators shall make their decision in writing within
sixty (60) days after their appointment, unless the time is extended by the agreement of both
parties. After a review of all pertinent facts the board of arbitrators may increase or decrease such
rental rate or continue the previous rental rate for the ensuing three (3) year or five (5) year term,
as the case may be.
3.2.3.5. Each party shall pay for and be responsible for the fees and
costs charged by the arbitrator selected by him. The fee of the third arbitrator shall be shared
equally by the parties.
3.2.4. The readjusted rental in each case, whether determined by arbitration or by
agreement of the parties themselves, shall be effective as of the Rental Adjustment Date.
3.3. Late Payment Charge: It is hereby further agreed that if such rental is not paid
before the 10th of each month then there will be added a late payment charge of 5% per month
for each month of delinquency until paid. It is agreed that this late payment charge is a reasonable
estimate of the increased costs to the city of the staff effort to monitor and collect late payments,
as well as related city expenses due to such late payment. If any check received by Lessor is
returned unpaid for any reason, Lessor reserves the right to make an additional charge of Ten
Dollars ($10.00).
LEASE AGREEMENT 4
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City of Renton to BHC, Inc.
3.4. Attorneys Fees/Collection Charges: Should it be necessary to refer this lease to an
attorney for collection or other court action involving breach of lease, occupancy after
termination, or enforcement or determination of any other right and/or duty under this lease, then
it is agreed that the prevailing party shall be entitled to recover its reasonable attorney's fees and
costs of litigation as established by the court. If the matter is not litigated or resolved through a
lawsuit, then any attorney's fees expenses for collection of past-due rent or enforcement of any
right or duty hereunder shall entitle the city to recover, in addition to any late payment charge,
any costs of collection or enforcement, including attorney's fees.
3.5. Other Charges: Lessee further agrees to pay, in addition to the rentals hereinabove
specified and other charges hereinabove defined, all fees and charges now in effect or hereafter
levied or established by Lessor, or its successors, or by any other governmental agency or
authority, being or becoming levied or charged against the premises, structures, business
operations, or activities conducted by or use made by Lessee of, on, and from the leased premises
which shall include, but not be limited to, all charges for light, heat, gas, power, garbage, water
and other utilities or services rendered to said premises.
3.6. Leasehold Excise Tax: Lessee hereby agrees and covenants to pay unto Lessor that
certain leasehold excise tax as established by RCW Chapter 82.29A, as amended, or any
replacement thereof, which tax shall be in addition to the stipulated monthly rental and shall be
paid separately to the Director of Finance, City of Renton, at the same time the monthly rental is
due. In the event that the State of Washington or any other governmental authority having
jurisdiction thereover shall hereafter levy or impose any similar tax or charge on this lease or the
leasehold estate, then Lessee agrees and covenants to pay said tax or charge, when due. Such tax
or charge shall be in addition to the regular monthly rentals.
3.7. Pro-Rated Rental: Rental for any period during the term of this lease which is less
than one (1) month shall be paid in a pro rata portion of the monthly rental installment amount.
4. RENTAL DEPOSIT: Lessee further agrees to deposit the first and last month's rental
with Lessor in the sum of Two Thousand Three Hundred Thirty Eight and 92/100 Dollars
($2,338.92), receipt of which is acknowledged by Lessor. Lessor shall not be required to keep
the security deposit separate from its general account. Interest earned thereon shall be for the
credit of the Lessor.
5. PAYMENT OF UTILITIES AND RELATED SERVICES. Lessee shall pay for all
light, heat, gas, power, garbage, water, sewer and janitorial service used in the Premises. Lessor
shall not be liable for any loss or damage caused by or resulting from any variation, interruption,
or failure of said utility services due to any cause whatsoever; and no temporary interruption or
failure of such services incident to the making of repairs, alterations or improvements, or due to
accident, strike, act of God, or conditions or events not under Lessor's control, shall be deemed a
breach of the Lease or as an eviction of Lessee, or relieve Lessee from any of its obligations
hereunder.
LEASE AGREEMENT-5.
ORIGINAl
City of Renton to BHC, Inc.
6. LESSEE'S ACCEPTANCE OF PREMISES.
6.1. General Acceptance of Premises: By occupying the Premises, Lessee formally
accepts the same in AS IS condition, and acknowledges that the Lessor has complied with all the
requirements imposed upon it under the terms of this Lease with respect to the condition of the
Premises at the commencement of this term. Lessee hereby accepts the premises subject to all
applicable zoning, municipal, county and state laws, ordinances and regulations governing and
regulating the use of the premises, and accepts this Lease subject thereto and to all matters
disclosed thereby and by any exhibits attached hereto. Lessee acknowledges that neither Lessor
nor Lessor's agent has made any representation or warranty as to the suitability of the Premises
for the conduct of Lessee's business or use. Except as otherwise provided herein, Lessor warrants
Lessee's right to peaceably and quietly enjoy the premises without any disturbance from Lessor, or
others claiming by or through Lessor.
7. PURPOSE:
7.1. Use of Premises: The Premises are leased to the Lessee for the following described
purposes:
7.1.1. Operation of covered aircraft storage facilities (T-hangars) primarily for the
storage of seaplanes owned by the shareholders of BHC, Inc. Lessee may, if and when
shareholders do not occupy all available T-Hangars, make available for and offer the non-
shareholder-occupied T-Hangars for lease by the public upon request.
7.1.2. The operation of T-Hangar tenant and visitor vehicles upon the West
Aircraft Apron, i.e., that area between the West edge stripe of the West parallel taxiway and the
Airplane Parking Restriction Line (the East boundary of the Premises) is not permitted.
7.2. Continuous Use: Lessee covenant4 that the premises shall be continuously used for
those purposes during the term of the lease, shall not be allowed to stand vacant or idle, and shall
not be used for any other purpose without Lessor's written consent first having been obtained.
Consent of Lessor to other types of activities will not be unreasonably withheld.
7.3. Non-Aviation Uses Prohibited: Lessee agrees that, except as expressly provided
above, the Premises may not be used for uses or activities that are not related, directly or
indirectly, to aviation.
7.4. Sims: No advertising matter or signs shall be at any time displayed on the leased
premises or structures without the written approval of Lessor, which will not be unreasonably
withheld.
7.4.1. Lessee agrees to paint out or otherwise remove the Airmaster name painted
on the building and to paint out or otherwise remove information located on the southeast corner
of the building which does not apply to the permitted use of the building, specifically:
a. Transient fueling and parking, and
b. Reference to the Unicorn frequency 123.0
LEASE AGREEMENT-6 ORIGINAL
City of Renton to BHC, Inc.
7.5. Conformity with Rules: Lessee further covenants to keep and operate the Premises
and all structures, improvements, and activities in conformity with all rules, regulations and laws
now or hereafter adopted by Lessor, including the Airport's Minimum Standards which are
incorporated herein by this reference, the Federal Aviation Administration, the State Aeronautics
Commission, or other duly constituted governmental authority, all at Lessee's cost and expense.
7.6. Waste, Nuisance; Illegal Activities: Lessee covenants that he will not permit any
waste, damage, or injury to the Premises or improvements thereon, nor allow the maintenance of
any nuisance thereon, nor the use thereof for any illegal purposes or activities.
7.7. Increased Insurance Risk: Lessee will not do or permit to be done in or about the
premises anything which will be dangerous to life or limb, or which will increase any insurance
rates upon the premises or other buildings and improvements.
7.8. Hazardous Waste:
7.8.1. Lessee's Representation and Warranty: In particular, Lessee represents and
warrants to the Lessor that Lessee's use of the Premises will not involve the use of any hazardous
substance (as defined by R.C.W. Chapter 70.105D, as amended), other than fuels, lubricants and
other products which are customary and necessary for use in Lessee's ordinary course of business.
7.8.2. Standard of Care: Lessee agrees to use a high degree of care to be certain
that no such hazardous substance is improperly used, released or disposed on the Premises during
the term of this lease by Lessee, its agents or assigns, or is improperly used, released or disposed
on the premises by the act of any third party.
7.8.3. Indemnity:
(a) The parties agree that Lessor shall have no responsibility to the
Lessee, or any other third party, for remedial action under R.C.W. Chapter 70.105D, or other
legislation, in the event of a release of or disposition of any such hazardous substance on, in, or at
the Premises, and not caused by Lessor, during the term of this Lease. Lessee agrees to indemnify
and hold harmless the Lessor from any obligation or expense, including fees incurred by the
Lessor for attorneys, consultants, engineers, damages, including environmental resource damages,
etc., arising by reason of the release or disposition of any such hazardous substance upon the
Premises caused by Lessee or any Sublessee or other person for whom Lessee would otherwise
be liable, including remedial action under R.C.W. Chapter 70.105D, during the term of this Lease.
(b) The parties agree that Lessee shall have no responsibility to the
Lessor, or any other third party, for remedial action under R.C.W. Chapter 70.105D, or other
legislation, in the event of a release of or disposition of any such hazardous substance on, in, or at
the Premises, and not caused by Lessee, prior to the term of this Lease. Lessor agrees to
indemnify and hold harmless the Lessee from any obligation or expense, including fees incurred by
the Lessee for attorneys, consultants, engineers, damages, including environmental resource
damages, etc., arising by reason of the release or disposition of any such hazardous substance
upon the Premises not caused by Lessee, including remedial action under R.C.W. Chapter
AGREEMENT-7
LEASE ORIGINAI
City of Renton to BHC,Inc.
70.105D, prior to the term of this Lease.
7.8.4. Dispute Resolution: In the event of any dispute between the parties
concerning whether any release of or disposition of any such hazardous substance on, in or at the
premises (a) occurred during the term of this lease, or (b) was caused by Lessor, the parties agree
to submit the dispute for resolution by arbitration upon demand by either party. Each party shall
select one (1) arbitrator. The two (2) selected arbitrators, if unable to agree upon an arbitration
award within a period of thirty (30) days after such appointment, shall select a third arbitrator.
The third arbitrator shall be an engineer with experience in the identification and remediation of
hazardous substances. The arbitrators shall make their decision in writing within sixty (60) days
after their appointment, unless the time is extended by the agreement of the parties. The decision
of a majority of the arbitrators shall be final and binding upon the parties. Each party shall bear
the cost of the arbitrator named by it. The expenses of the third arbitrator shall be borne by the
parties equally.
8. MAINTENANCE:
8.1. Maintenance of Premises: The Premises and all of the improvements or structures
thereon shall be used and maintained by Lessee in a neat, orderly, and sanitary manner.
Improvements and structures shall, for the purpose of maintenance, include pavement, pavement
joints, oil separators, grounding rods, aircraft tie-down points and etc. upon the premises, whether
constructed or installed by the Lessor or the Lessee, all Lessee installed improvements and
structures, whether above or below the ground, but not inlcuding storm drain structures, water
lines, sewer lines and other utilities installed by the Lessor. Lessor shall not be called upon to
make any improvements, alteration, or repair of any kind upon the Premises. Lessee is
responsible for the clean-up and proper disposal at reasonable and regular intervals of rubbish,
trash, waste and leaves upon the Premises, including that blown against fences bordering the
Premises, whether as a result of the operation of Lessee's aircraft storage activities or having been
deposited upon the Premises from other areas.
8.2. Removal of Snow/Floodwater/Mud: Lessee shall be responsible for removal of snow
and/or floodwaters or mud deposited therefrom from the Premises, with the disposition thereof to
be accomplished in such a manner so as to not interfere with or increase the maintenance activities
of Lessor upon the public areas of the Airport.
8.3. Repair of Personal Propert y: It is further agreed that all personal property on the
Premises shall be at the risk of Lessee only, and that Lessor or Lessor's agents shall not be liable
for any damage either to persons or property sustained by Lessee or other persons due to the
Premises or improvements thereon becoming out of repair.
8.4. Lessor May Perform Maintenance: If Lessee fails to perform Lessee's obligations
under this Paragraph, Lessor may at its option (but shall not be required to) enter the Premises,
after thirty (30) days' prior written notice to Lessee, and put the same in good order, condition
and repair, and the cost thereof together with interest thereon at the rate of twelve (12%) percent
per annum shall become due and payable as additional rental to Lessor together with Lessee's next
rental installment.
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City of Renton to BHC, Inc.
9. ALTERATIONS.
9.1. Lessor's Consent Required: Lessee will not make any alterations, additions or
improvements in or to the Premises without the written consent of Lessor first having been
obtained, which consent shall not unreasonably be withheld.
9.2. Protection from Liens: Before commencing any work relating to alterations,
additions and improvements affecting the Premises, Lessee shall notify Lessor in writing of the
expected date of commencement thereof. Lessor shall then have the right at any time and from
time to time to post and maintain on the Premises such notices as Lessee reasonably deems
necessary to protect the Premises and Lessor from mechanics' liens, materialmen's liens or any
other liens. In any event, Lessee shall pay, or bond around, all claims for labor or materials
furnished to or for Lessee at or for use in the Premises when due. Lessee shall not permit any
mechanics' or materialmen's liens to be levied against the Premises for any labor or material
furnished to Lessee or claimed to have been furnished to Lessee or to Lessee's agents or
contractors in connection with work of any character performed or claimed to have been
performed on the Premises by or at the direction of Lessee.
9.3. Bond: At any time Lessee either desires to or is required to make any repairs,
alterations, additions, improvements or utility installation thereon, or otherwise, Lessor may at its
sole option require Lessee, at Lessee's sole cost and expense, to obtain and provide to Lessor a
lien and completion bond in an amount equal to one and one-half(1-1/2) times the estimated cost
of such improvements, to insure Lessor against liability for mechanics and materialmen's liens and
to insure completion of the work.
9.4. Lessor May Make Improvements: Lessee agrees that Lessor, at its option, may at its
own expense make repairs, alterations or improvements which Lessor may deem necessary or
advisable for the preservation, safety or improvement of the Premises or improvements located
thereon, if any.
9.5. Notification of Completion: Upon completion of capital improvements made on the
Premises, it is the Lessee's responsibility to promptly notify Lessor of such completion.
10. IMPROVEMENTS: As further consideration for this lease, it is agreed that at the
expiration of the term, or extensions thereof, if any, of this lease, all structures and any and all
improvements of any character whatsoever installed on the Premises shall be and become the
property of the Lessor, and title thereto shall pass and revert to Lessor at such termination, and
none of such improvements now or hereafter placed on the Premises shall be removed therefrom
at any time without Lessor's written consent. The Lessor shall have the alternative, at its option,
to require Lessee, upon the expiration of the term or extensions thereof, if any, to remove any and
all improvements and structures installed by Lessee from the Premises and repair any damage
caused thereby, at Lessee's expense.
11. LIMITATION UPON LESSOR'S LIABILITY. Lessor shall not be liable for any
damage to property or persons caused by, or arising out of(a) any defect in or the maintenance or
use of the Premises, or the improvements, fixtures and appurtenances of which the premises
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City of Renton to BHC, Inc.
constitute a part; or (b) water coming from the roof, water pipes, flooding of the Cedar River or
other body of water, or from any other source whatsoever, whether within or without the
Premises; or (c) any act or omission of any Lessee or other occupants of the building, or their
agents, servants, employees or invitees thereof.
12. INDEMNITY: Lessee covenants to indemnify and save harmless Lessor against any
and all claims arising from the conduct and management of or from any work or thing whatsoever
done in or about the Premises or the improvements or equipment thereon during the lease term, or
arising from any act or negligence of the Lessee or any of its agents, contractors, patrons,
customers, or employees, or arising from any accident, injury, or damage whatsoever, however
caused, to any person or persons, or to the property of any person, persons, corporation or other
entity occurring during the lease term on, in, or about the Premises, and from and against all
costs, attorney's fees, expenses, and liabilities incurred in or from any such claims or any action or
proceeding brought against the Lessor by reason of any such claim, except such claims arising
directly or indirectly out of Lessor's sole act or omission. Lessee, on notice from Lessor, shall
resist or defend such action or proceeding forthwith.
13. ASSIGNMENT:
13.1. Assignment/Subletting: This lease or any part hereof shall not be assigned by
Lessee, by operation of law or otherwise, nor shall the premises or any part thereof be sublet
without the prior written consent of Lessor, which consent shall not be unreasonably withheld,
subject to Lessor's receipt of commercially reasonable evidence that the proposed assignee or
subtenant is in a financial condition to undertake the obligations of this lease, and, in the event of
assignment, Lessor's receipt of an affidavit from the proposed assignee stating that it has
examined this lease and agrees to assume and be bound by all of Lessee's obligations under this
lease, to the same extent as if it were the original Lessee. If Lessee is a corporation, the transfer
of a majority of Lessee's stock shall constitute an assignment for purposes of this paragraph.
13.2. Subletting: Lessee may sublet portions of the Premises to the public for the purpose
of aircraft T-Hangar storage without the prior written approval by the Lessor of this permitted
use, on a month-to-month or longer basis (but not longer than the term of this Lease), provided
that Lessor is notified, in writing, upon the initiation of such subletting to the public and thereafter
informed on at least an annual basis, in writing, of the name of the sublessee(s), the purpose of the
sublease, the amount of the rental charged, and the type of aircraft stored (make, model and
registration number). For spaces rented to itinerant aircraft operators on a less than month-to-
month basis, Lessor is to be informed at least once annually, in writing, of the number of aircraft
T-Hangar storage spaces used for this purpose, and the total annual revenue received by Lessee
from these spaces. Such information shall be disclosed upon request by Lessor.
13.3. Subsequent Consent Required: In the event written consent to assignment or
subletting shall be given by Lessor, no other subsequent assignment, assignments, or subletting
shall be made by such assignee or assignees, or sublessee, without the prior written consent of
Lessor. It is expressly agreed that if consent is once given by the Lessor to the assignment of this
lease or any interest therein or to the subletting of the whole or any part of the premises, then
Lessor shall not be barred from afterwards re sin to c s o any further assignment of said
LEASE AGREEMENT- 10
City of Renton to BHC, Inc.
lease or subletting of said leased premises.
13.4. Release of Lessee's Liability: No subletting shall release Lessee of Lessee's
obligation to pay the rent and to perform all other obligations to be performed by Lessee
hereunder for the term of this Lease. No assignment shall so release Lessee unless Lessor's
consent is obtained pursuant to Paragraph 13.1. In the event that Lessor's consent to assignment
is so obtained, Lessee shall be relieved of all liability arising from this lease and arising out of any
act, occurrence or omission occurring after Lessor's consent is obtained. The Lessee's assignee
shall be deemed to have assumed and agreed to carry out all of the obligations of Lessee under
this lease.
14. DEFAULT:
14.1 Events of Default: It is expressly understood and agreed that in the event the
Premises shall be deserted or vacated, or if default be made in the payment of the rent or any part
thereof as herein specified, or if, without consent of the Lessor, the Lessee shall sell, assign, or
mortgage this lease, or if default be made in the performance of any of the material covenants and
agreements in this lease contained on the part of the Lessee to be kept and performed, or if Lessee
shall fail to comply with any of the statutes, ordinances, rules, orders, regulations, and
requirements of the federal, state, and city governments, or if Lessee shall file a petition for
bankruptcy or be adjudicated a bankrupt, or make assignment for the benefit of creditors or take
advantage of any insolvency act, the Lessor may, if it so elects, at any time thereafter, terminate
this lease and the term hereof, on giving to the Lessee thirty (30) days notice, in writing, of the
Lessor's intention to do so if the event causing the default is not corrected.
14.2. Additional Security: In the event of default as provided above, which default
remains uncured for more than ten (10) days after Lessor notice of default, Lessor may request
and Lessee shall provide adequate assurance of future performance of all obligations under this
lease. The adequacy of any assurance shall be determined according to commercially reasonable
standards. Adequate assurance shall include, but not be limited to, a deposit in escrow, a
guarantee by a third party acceptable to Lessor, a surety bond, or a letter of credit. Lessee's
failure to provide adequate assurance within twenty (20) days of receipt of a request by lessor
shall constitute a material breach and Lessor may in its discretion terminate this lease.
14.3. Termination of Lease: Upon the expiration of either of the notice periods specified
in Paragraphs 143 or 14.2 above, and if the event causing the default is not corrected, this lease
and the term hereof, together with any and all other rights and options of Lessee herein specified,
shall expire and come to an end on the day fixed in such notice, except that Lessee's obligation
and liability for any unpaid rentals or other charges heretofore accrued shall remain unabated.
Lessor may thereupon re-enter said premises with or without due process of law, using such force
as may be necessary to remove all persons or property therefrom, and Lessor shall not be liable
for damages by reason of such re-entry or forfeiture.
LEASE AGREEMENT-
I1 ORIGINAI
City of Renton to BHC, Inc.
15. BINDING AGREEMENT: Subject to the restriction upon assignment or
subletting as set forth herein, all of the terms, conditions, and provisions of this Lease shall be
binding upon the parties, their successors and assigns, and in the case of a Lessee who is a natural
person, his or her personal representative and heirs.
16. RIGHT OF INSPECTION. Lessee will allow Lessor, or Lessor's agent, free
access at all reasonable times to the Premises for the purpose of inspection, or of making repairs,
additions or alterations to the Premises, or any property owned by or under the control of Lessor.
17. CONDEMNATION: If the whole or any substantial part of the Premises shall be
condemned or taken by Lessor or any county, state, or federal authority for any purpose, then the
term of this lease shall cease as to the part so taken from the day the possession of that part shall
be required for any purpose, and the rent shall be paid up to that date. From that day the Lessee
or Lessor shall have the right to either cancel this lease and declare the same null and void, or to
continue in the possession of the remainder of the same under the terms herein provided, except
that the rent shall be reduced in proportion to the amount of the premises taken for such public
purposes. All damages awarded for such taking for any public purpose shall belong to and be the
property of the Lessor, whether such damage shall be awarded as compensation for the
diminution in value to the leasehold, or to the fee of the premises herein leased. Damages
awarded for the taking of Lessee's improvements located on the premises shall belong to and be
awarded to Lessee.
18. SURRENDER OF PREMISES: Lessee shall quit and surrender the premises at
the end of the term in as good a condition as the reasonable use thereof would permit, normal
wear and tear excepted. Alterations, additions or improvements which may be made by either of
the parties hereto on the Premises, except movable office furniture or trade fixtures put in at the
expense of Lessee, shall be and remain the property of the Lessor and shall remain on and be
surrendered with the Premises as a part thereof at the termination of this lease without hindrance,
molestation, or injury. Lessee shall repair at its sole expense any damage to the Premises
occasioned by its use thereof, or by the removal of Lessee's trade fixtures, furnishings and
equipment which repair shall include the patching and filling of holes and repair of structural
damage.
19. INSURANCE:
19.1. Personal Property: It is agreed that Lessor shall not be held liable in any manner
for, or on account of, any loss or damage to personal property of the Lessee, Lessee's invitees or
other persons, which may be sustained by fire or water or other insured peril, or for the loss of
any articles by burglary, theft or any other cause from or upon the Premises. It is acknowledged
that Lessor does not cover any of the personal property of Lessee, Lessee's invitees or other
persons upon the Premises through its insurance. Lessee, its invitees and other persons upon the
Premises are solely responsible to obtain suitable personal property insurance.
19.2. Liability Insurance. The Lessee agrees to maintain in force during the term of this
Lease a policy of comprehensive public liability and property damage insurance written by a
company authorized to do business in the State of Washington against any liability arising out of
LEASE AGREEME _NT 12 ORIOWNAL
City of Renton to BHC,Inc.
the ownership, use, occupancy or maintenance of the Premises.and all areas appurtenant thereto.
The limits of liability shall be in an amount of not less than $1,000,000.00 for injury to or death of
one person in any one accident or occurrence and in an amount of not less than $1,000,000.00 for
injury to or death of more than one person in any one accident or occurrence, and of not less than
$1,000,000.00 for property damage. The limits of said insurance shall not, however, limit the
liability of Lessee hereunder. The insurance policy shall have a Landlord's Protective Liability
endorsement attached thereto.
19.3. Insurance Policies: Insurance required hereunder shall be written in companies
acceptable to Lessor and rated A-10 or better in "Best's Insurance Guides". Coverages shall be
submitted on forms prescribed by Lessor. Prior to possession, the Lessee shall deliver to Lessor
copies of policies of such insurance acquired by Lessee, or certificates evidencing the existence
and amounts of such insurance, with loss payable clauses satisfactory to Lessor. Lessor shall be
named as an additional insured. No such policy shall be cancellable or subject to reduction of
coverage or other modification except after thirty (30) days' prior written notice to Lessor.
Lessee shall, not less than thirty (30) days prior to the expiration of such policies, furnish Lessor
with renewals or "binders" therefor. Lessee shall not do or permit to be done anything which shall
invalidate the insurance policies referred to above. Lessee shall forthwith, upon Lessor's demand,
reimburse Lessor for any additional premiums attributable to any act or omission or operation of
Lessee causing such increase in the cost of insurance. If the Lessee shall fail to procure and
maintain said insurance the Lessor may, but shall not be required to, procure and maintain the
same, but at the expense of Lessee.
19.4. Waiver of Subrogation: Lessee and Lessor each waives any and all rights of
recovery against the other, or against the officers, employees, agents and representatives of the
other, for loss of or damage to such waiving party or its property or the property of others under
its control, where such loss or damage is insured against under any insurance policy in force at the
time of such loss or damage. Lessee shall, upon obtaining the policies of insurance required
hereunder, give notice to the insurance carriers that the foregoing mutual waiver of subrogation is
contained in this Lease.
20. TAXES: Lessee shall be responsible for the payment of any and all taxes and
assessments upon any property or use acquired under this agreement.
21. HOLDING OVER: If, without execution of any extension or renewal of this lease
Lessee should remain in possession of the premises after expiration or termination of the term of
this lease, then Lessee shall be deemed to be occupying the Premises as a tenant from
month-to-month. All the conditions, terms, and provisions of this lease, insofar as applicable to a
month-to-month tenancy, shall likewise be applicable during such period.
22. NO WAIVER: It is further covenanted and agreed between the parties hereto that
no waiver by Lessor of a breach by Lessee of any covenant, agreement, stipulation, or condition
of this lease shall be construed to be a waiver of any succeeding breach of the same covenant,
agreement, stipulation, or condition, or a breach of any other covenant agreement, stipulation, or
condition. The acceptance by the Lessor of rent after any breach by the Lessee of any covenant
or condition by Lessee to be performed or observed shall be construed to be payment for the use
AGREEMENT- 13
LEAS REE
E G ORIGINAL
City of Renton to BHC, Inc.
and occupation of the premises and shall not waive any such breach or any right of forfeiture
arising therefrom.
23. NOTICES: All notices under this lease shall be in writing and delivered in person,
with receipt therefor, or sent by certified mail, in the case of any notice unto Lessor, at the
following address:
Airport Manager
616 West Perimeter Road
Renton, Washington 98055
and in case of any notice unto Lessee, to the address of the Premises, or such address as may
hereafter be designated by either party in writing.
24. DISCRIMINATION PROHIBITED:
24.1. Discrimination Prohibited: Lessee covenants and agrees not to discriminate
against any person or class of persons by reason of race, color, creed, sex or national origin in the
use of any of its facilities provided for the public in the Airport. Lessee further agrees to furnish
services on a fair, equal and not unjustly discriminatory basis to all users thereof, and to charge on
a fair, reasonable and not unjustly discriminatory basis for each unit of service; provided that
Lessee may make reasonable and non-discriminatory discounts, rebates, or other similar types of
price reductions to volume purchasers.
24.2. Minority_Business Enterprise Policy: It is the policy of the Department of
Transportation that minority business enterprises as defined in 49 C.F.R. Part 23 shall have the
maximum opportunity to participate in the performance of leases as defined in 49 C.F.R. 23.5.
Consequently, this lease is subject to 49 C.F.R. Part 23, as applicable. No person shall be
excluded from participation in, denied the benefits of or otherwise discriminated against in
connection with the award and performance of any contract, including leases covered by 49
C.F.R. Part 23, on the grounds of race, color, national origin or sex.
24.3. Application to Sub-leases: Subject to the provisions of Paragraph 13 of this Lease,
Lessee agrees that it will include the above clause in all assignments of this lease or sub-leases,
and cause its assignee(s) and sub-lessee(s) to similarly include the above clause in further
assignments or sub-leases of this Lease.
25. FORCE MAJEURE: In the event that either party hereto shall be delayed or
hindered in or prevented from the performance of any act required hereunder by reason of strikes,
lockouts, labor troubles, inability to procure materials, failure of power, restrictive governmental
laws or regulations, riots, insurrections, war, or other reason of like nature not the fault of the
party delayed in performing work or doing acts required under the terms of this Lease, then
performance of such act shall be extended for a period equivalent to the period of such delay.
The provisions of this paragraph shall not, however, operate to excuse Lessee from the prompt
payment of rent, or any other payment required by the terms of this Lease, to be made by Lessee.
26. TIME OF ESSENCE: Time is of the essence of this agreement.
LEASE AGREEMENT- 14
City of Renton to BHC,Inc.
ORIGINA1
27. CAPTIONS: Article and paragraph captions are not a part hereof.
28. ENTIRE AGREEMENT: This Lease contains all agreements of the parties with
respect to any matter mentioned herein. No prior agreement or understanding, written or verbal,
pertaining to any such matter shall be effective. This Lease may be modified in writing only,
signed by the parties in interest at the time of the modification.
29. CUMULATIVE REMEDIES: No remedy or election hereunder shall be deemed
exclusive, but shall wherever possible, be cumulative with all other remedies at law or in equity.
30. CORPORATE AUTHORITY: If Lessee is a corporation, each individual
executing this Lease on behalf of said corporation represents and warrants that he is duly
authorized to execute and deliver this Lease on behalf of said corporation in accordance with a
duly adopted resolution of the Board of Directors of said corporation and in accordance with the
Bylaws of said corporation, and that this Lease is binding upon said corporation in accordance
with its terms.
LEASE AGREEMENT- IS
ORIGINAL
City of Renton to BHC, Inc.
31. TRANSFER OF PREMISES BY LESSOR: In the event of any sale, conveyance,
transfer or assignment by Lessor of its interest in the Premises, Lessor shall be relieved of all
liability arising from this Lease and arising out of any act, occurrence or omission occurring after
the consummation of such sale, conveyance, transfer or assignment. The Lessor's transferee shall
be deemed to have assumed and agreed to carry out all of the obligations of the Lessor under this
Lease, including any obligation with respect to the return of any security deposit.
LESSEE: LESSOR:
BHC, Inc. THE CITY OF RENTON
a Washington corporation a Washington municipal corporation
b by Q VA,rY\A-tA
Y
its: Mayor
Date: Date:
ATTEST:
By
its: b
Date: City Clerk
Date: /4-off - 3
Approveco legal f
6 Attorney
LEASE AGRE
EMENT 16
ORIGINAL
City of Renton to BHC, Inc.
y
STATE OF WASHINGTON )
) ss
COUNTY OF KING )
I, the undersigned, a Notary Public in and for the State of Washington, hereby certify that
on Dr_ragg Z4 1993, personally appeared before me Earl Clymer and Marilyn J. Petersen,
known to me to be the duly qualified and acting Mayor and City Clerk, respectively, of the City of
Renton, Washington, and acknowledged that they executed the above and foregoing instrument
for the City of Renton as the free and voluntary act and deed of said city for the uses and
purposes therein set forth, and upon oath stated that such execution of said instrument by them is
duly and regularly authorized, and that the seal attached thereto is the corporate seal of the City
of Renton.
_ Signatu e o Notary
LISA S'TFPAEMS (Print or Stamp Name )
Notary Public in and for the State
of Washington, residing at Renton.
My Commission Expires /O-/9 g 7
STATE OF WASHINGTON )
ss.
COUNTY OF KING )
I certify that I know or have satisfactory evidence that
is the person who appeared before
me, and sa d person acl7,nc&ledged that he signed this instrument,
on oath stated that he was authorized to execute the instrument
and acknowledged it as the pnl,4141'r of BHC ,
Inc. , a corporation, to be the free and voluntary act of such
corporation for the uses and purposes mentioned in the instrument.
DATED this �- day of OCtO49Z v , 1993.
(Sig ture of Notary
JU04 '3, PIE s56 KO
Legibly Print or Stamp Name of Notary
Notary Public in and for the ,State
of Washignton, residing at Qd Vt
4 _ My appointment expires �G 1-g•95
LEASE AGREEMENT- 17
ORIGINA
�.._
City of Renton to BHC,Inc.
NOW S404
LAG 93-ov
DATE /D-Lf-9,3
EXHIBIT"A"
BHC, INC.
NORTHWEST HANGAR PROPERTY
aka 850 BUILDING
That portion of the Northwest Quarter of Section 7,Township 23 North Range 5 East
W.M. described as follows:
Commencing at a point 10 feet northerly of the intersection of the West Margin of Lake
Avenue South(formerly Lake Street)with the centerline of Airport Way S. (formerly Dixie
Avenue according to the plat of Renton Real Estate First Addn. as recorded in Volume 21,Page
50 Records of King County, Washington);
Thence South 87030'17"East on a line 10 feet North of and parallel to the centerline of
Airport Way South a distance of 286.31 feet to its intersection with the southerly extension of
the centerline of the existing runway of the City of Renton Airport;
Thence along said runway centerline North 04049143" West a distance of 294.74 feet to a
point referred to as Runway Station 0+00;
Thence North 0404943" West a distance of 4,792.70 feet;
Thence South 85010'17" West a distance of 375.00 feet;
Thence South 04049'43"East a distance of 22.50 feet to the True Point of Beginning;
Thence South 04049'43"East a distance of 167.50 feet;
Thence South 85010'17" West a distance of 170.18 feet;
Thence North 04049'43" West a distance of 40.00 feet;
Thence South 85000'17" West a distance of 170.00 feet;
Thence North 04053'45"East a distance of 129.52 feet;
Thence North 85010'17"East a distance of 318.44 feet to the True Point of Beginning
AREA: 48,778.57 square feet
LEASE AGREEMENT- 18 ORIGINN,
City of Renton to BHC, Inc.
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