HomeMy WebLinkAboutLease LAG-14-003
LEASE AGREEMENT
City of Renton to Rainier Flight Service, LLC
MONTH-TO-MONTH BUILDING STORAGE SPACE LEASE
THIS IS A MONTH TO MONTH LEASE AGREEMENT between THE CITY OF RENTON, a
Washington municipal corporation ("Landlord"), and Rainier Flight Service LLC, a
Washington limited liability corporation ("Tenant").
RECITALS:
WHEREAS, the Landlord desires to lease a portion of airport property located in
the 800 Building, located at 800 West Perimeter Road; and
WHEREAS, the map and specific leased dimensions are shown in Exhibit A; and
WHEREAS, the lease will be on a month-to-month basis for aircraft related
storage space.
NOW,THEREFORE, IT IS HEREBY AGREED AND COVENANTED BY AND BETWEEN THE
CITY OF RENTON AND RAINIER FLIGHT SERVICE, LLC AS FOLLOWS:
1. GRANT OF LEASE:
1a. Legal Description: The center portion (60' wide x 110' deep) of the 800
Building located at 800 West Perimeter Road on the Renton Airport. The leased area
contains six thousand six hundred (6,600) square feet, more or less, being a portion of
the real property described in Exhibit A (Lease Map) attached hereto and made a part
hereof as is fully set forth herein (the "Premises").
2. CONDITIONS:
2a. Specific Conditions: This grant of lease is subject to the following:
2a(1) Easements, restrictions and reservations of record and as further set
forth herein;
2a(2) Such rules and regulations as now exist or may hereafter be
promulgated by the Landlord from time to time, including the Airport's
Regulations and Minimum Standards which are incorporated herein by this
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City of Renton to Rainier Flight Service Inc
a Washington Limited Liability Corporation ORIGINAL
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reference, and Landlord's standards concerning operation of public aviation
service activities from the Airport; and
2a(3) All such non-discriminatory charges and fees for such use as may be
established from time to time by Landlord; and
2a(4) TOGETHER WITH the privilege of Tenant to use the public portion of the
Airport, including runway and other public facilities provided thereon, on a
non-exclusive basis.
2b. 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 Landlord
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.
2c. Nature of Landlord's Interest: It is expressly understood and agreed that
Landlord holds and operates the Airport, and the Premises under and subject to a grant
and conveyance thereof to Landlord 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
Landlord 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 Tenant 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 Landlord in favor of Tenant, provided that
Landlord does not exceed its authority under the foregoing legislation, rules, or
regulations.
2d. Future Development/Funding: Nothing contained in this lease shall operate
or be construed to prevent or hinder the future development, improvements, or
operation of Airport by Landlord, 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
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City of Renton to Rainier Flight Service Inc
a Washington Limited Liability Corporation
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loan or grant of federal or state funds in aid of the development, improvement, or
operation of the Renton Airport.
3. TERM: The term of this lease shall be month-to-month, commencing on July
1, 2014, and shall continue on a month-to-month basis until such time as one party
gives the other written notice of termination, except that Landlord may terminate this
lease upon not less than three days' notice in the case of nonpayment of rental. Either
party may, upon written notice to the other delivered at least thirty (30) days before the
end of the calendar month,terminate this lease without cause at such effective date.
3. RENTAL:
4a. Initial Rental: As rental for the above-described premises on a month-to-
month basis, Tenant shall pay unto Landlord a monthly rental in the sum of One
Thousand, Four Hundred Ninety Six Dollars and Zero Cents ($1,496.00), plus Leasehold
Excise Tax as described in Paragraph 5 below, payable promptly in advance on the first
day of each and every month. Tenant covenants that Kenmore Air Harbor, Inc. shall
make all monthly rental payments to the Landlord. All such payments shall be made to
the Renton Airport Administration Office, 616 West Perimeter Road-Unit A, Renton,
Washington 98057. The initial rental is computed as follows, and is based upon an
estimated building lease area (which the parties stipulate to be accurate) of 4,300
square feet.
Rental Payment Schedule
Building Component = 6,600 sq. ft. @ $ 1.97/sq. ft. per year (2014 appraised building
rate) _ $13,002/yr rental, plus leasehold excise tax
Land Component = 6,600 sq. ft. @ $ 0.75/sq. ft. per year= $4,950/yr rental, plus
leasehold excise tax
Total Monthly Building and Land Component = $13,002/yr+ $4,950/yr = $17,952 /
12 month = $1,496/ month, plus leasehold excise tax
4b. Rental Adiustment: Landlord shall give written notification to Tenant of any
change in the rental amount at least thirty (30) days prior to the effective date of the
rental adjustment.
4c. 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
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effort to monitor and collect late payments, as well as related city expenses due to such
late payment. If any check received by Landlord is returned unpaid for any reason,
Landlord reserves the right to make an additional charge up to the maximum amount
allowed by law.
4d. Attorneys Fees/Collection Charges: Should it be necessary to refer this lease
to an attorney (including those employed by the city) 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.
4e. Other Charges: Tenant 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 Landlord, 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
Tenant 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.
4f. Emergency Response: Tenant must provide reasonable access and response
to the Airport Manager in times of emergency or urgency. The Tenant is wholly
responsible to keep an up-to-date listing of aircraft types, identification, and owners on
file and at the Airport Manager's office.
5. LEASEHOLD EXCISE TAX: Tenant hereby agrees and covenants to pay unto
Landlord that certain leasehold excise tax as established by RCW Chapter 82.29A, now
or 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 Tenant agrees and covenants to pay said tax or charge, when due. Such tax or
charge shall be in addition to the regular monthly rentals.
6. PAYMENT OF UTILITIES AND RELATED SERVICES. Tenant shall pay for all light,
heat, gas, power, garbage, water, sewer and janitorial service used in the Premises.
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Landlord 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.
Landlord shall not be liable for temporary interruption or failure of such services
incidental to the making of repairs, alterations or improvements, or due to accident,
strike, act of God, or conditions or events not under Landlord's control. Temporary
interruption or failure of utility services shall not be deemed a breach of the Lease or as
an eviction of Tenant, or relieve Tenant from any of its obligations hereunder.
7. TENANT'S ACCEPTANCE OF PREMISES.
By occupying the Premises, Tenant formally accepts the same in AS IS condition,
and acknowledges that the Landlord 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. Tenant 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. Tenant
acknowledges that neither Landlord nor Landlord's agent has made any representation
or warranty as to the suitability of the Premises for the conduct of Tenant's business or
use. Except as otherwise provided herein, Landlord warrants Tenant's right to
peaceably and quietly enjoy the premises without any disturbance from Landlord, or
others claiming by or through Landlord.
8. PURPOSE OF USE:
8a. Use of Premises: The Premises shall be used for storage of aircraft.
8b. Continuous Use: Tenant covenants that the premises shall be continuously
used for each of 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 Landlord's
written consent first having been obtained. Consent of Landlord to other types of
activities will not be unreasonably withheld.
8c. Non-Aviation Uses Prohibited: Tenant agrees that the Premises may not be
used for uses or activities that are not related, directly or indirectly, to aviation.
8d. Si&ns:
8d(1) Advertising: No advertising matter or signs shall be at any time displayed
on the leased premises without the written approval of Landlord, which will not be
unreasonably withheld.
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8e. Conformity with Rules: Tenant 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 Landlord, including the Airport's
Regulations and 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 Tenant's cost and expense.
8f. Waste; Nuisance; Illegal Activities: Tenant 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.
8g. Increased Insurance Risk: Tenant 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.
8h. Hazardous Waste:
8h(1). Tenant's Representation and Warranty: In particular, Tenant represents
and warrants to the Landlord that Tenant'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
Tenant's ordinary course of business.
8(h)2. Standard of Care: Tenant 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 Tenant, its agents or assigns, or is
improperly used, released or disposed on the premises by the act of any third party.
8h(3). Indemnity:
8h(3)(a) The parties agree that Landlord shall have no responsibility to the
Tenant, 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 Landlord, during the term of this
Lease. Tenant agrees to indemnify and hold harmless the Landlord from any obligation
or expense, including fees incurred by the Landlord 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 Landlord, including remedial action under R.C.W. Chapter 70.105D, during the
term of this Lease.
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8h(3)(b) The parties agree that Tenant shall have no responsibility to the
Landlord, 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 Tenant, prior to the term of this
Lease. Landlord agrees to indemnify and hold harmless the Tenant from any obligation
or expense, including fees incurred by the Tenant 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
Tenant, including remedial action under R.C.W. Chapter 70.105D, prior to the term of
this Lease.
8h(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
Landlord, 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.
8i. Aircraft Registration Compliance: The Tenant is hereby notified of the
Washington State law concerning aircraft registration Aircraft Laws and Regulations,
Title 47.68.250 RCW: Public Highways and Transportation.
8i(1). Tenant shall annually, during the month of January, submit a report of
aircraft status to the Airport Manager. One copy of this report shall be used for each
aircraft owned by the Tenant, and sufficient forms will be submitted to identify all
aircraft owned by the Tenant and the current registration status of each aircraft using
the Aircraft Status Report form. If an aircraft is unregistered, an Unregistered Aircraft
Report, will also be completed and submitted to the Airport Manager.
8i(2). Tenant shall require from an aircraft owner proof of aircraft registration or
proof of intent to register an aircraft as a condition of leasing or selling tiedown or
hangar space for an aircraft. Tenant shall further require that annually, thereafter, each
aircraft owner using the Tenant's premises submits a report of aircraft status, or an
Unregistered Aircraft Report. The Tenant shall annually, during the month of January,
collect the aircraft owners' reports and submit them to the Airport Manager.
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8j. Aircraft airworthiness: Aircraft placed, parked or stored other than within
hangar buildings must be airworthy. Whenever an aircraft is temporarily undergoing
repairs exceeding 30 days, the Tenant will notify the Airport Manager of the repair
status, and the date repairs will be completed. When requested by the Landlord, the
Tenant must provide a schedule showing when repairs will be completed as to each
such aircraft. If Tenant fails to adhere to an agreed-upon repair schedule, or fails to
place and maintain the required red tag on the aircraft, the Tenant may be subject to
Civil Penalties or termination of this lease upon proper notice from the City of Renton.
9. MAINTENANCE:
9a. Maintenance of Premises: The Premises and all of the improvements or
structures thereon shall be used and maintained by Tenant in a neat, orderly, and
sanitary manner. Landlord shall not be called upon to make any improvements,
alteration, or repair of any kind upon the Premises. Tenant 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 have blown against fences bordering the
Premises, whether as a result of the operation of Tenant's aircraft tie-down storage
activities or having been deposited upon the Premises from other areas.
9b. Removal of Snow/Floodwater/Mud: Tenant 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 Landlord upon the public areas of the Airport.
9c. Repair of Personal Property: It is further agreed that all personal property
on the Premises shall be used at the risk of Tenant only, and that Landlord or Landlord's
agents shall not be liable for any damage either to persons or property sustained by
Tenant or other persons due to the Premises or improvements thereon becoming out of
repair.
9d. Maintenance, Repair and Marking of Pavement: Tenant shall be responsible
for the maintenance, repair and marking (painting) of pavement surrounding the
buildings within the leased area. Such maintenance and repair shall be to Federal
Aviation Administration standards as though the pavement were non-leased, public-use
taxiway and/or apron pavement. Such maintenance and repair shall include, as a
minimum, crack filling, weed control, slurry seal and the replacement of unserviceable
pavement, as necessary.
9e. Landlord May Perform Maintenance: If Tenant fails to perform Tenant's
obligations under this Paragraph, Landlord may at its option (but shall not be required
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to) enter the Premises, after thirty(30) days' prior written notice to Tenant, 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 Landlord together with Tenant's next rental installment.
10. ALTERATIONS.
10a. Landlord's Consent Required: Tenant will not make any alterations,
additions or improvements in or to the Premises without the written consent of
Landlord first having been obtained.
10b. Protection from Liens: Before commencing any work relating to
alterations, additions and improvements affecting the Premises, Tenant shall notify
Landlord in writing of the expected date of commencement thereof. Landlord shall then
have the right at any time and from time to time to post and maintain on the Premises
such notices as Landlord reasonably deems necessary to protect the Premises and
Landlord from mechanics' liens, materialmen's liens or any other liens. In any event,
Tenant shall pay, when due, all claims for labor or materials furnished to or for Tenant at
or for use in the Premises. Tenant shall not permit any mechanics' or materialmen's
liens to be levied against the Premises for any labor or material furnished to Tenant or
claimed to have been furnished to Tenant or to Tenant'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 Tenant.
10c. Bond: At any time Tenant either desires to or is required to make any
repairs, alterations, additions, improvements or utility installation thereon, or
otherwise, Landlord may at its sole option require Tenant, at Tenant's sole cost and
expense, to obtain and provide to Landlord 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 Landlord against liability for mechanics and materialmen's liens and to insure
completion of the work.
10d. Landlord May Make Improvements: Tenant agrees that Landlord, at its
option, may at its own expense make repairs, alterations or improvements which
Landlord may deem necessary or advisable for the preservation, safety or improvement
of the Premises or improvements located thereon, if any.
10e. Notification of Completion: Upon completion of capital improvements
made on the Premises, it is the Tenant's responsibility to promptly notify Landlord of
such completion.
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11. LIMITATION UPON LANDLORD'S LIABILITY. Landlord 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 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
Tenant or other occupants of the building, or their agents, servants, employees or
invitees thereof.
12. HOLD HARMLESS: Tenant covenants to indemnify and save harmless
Landlord 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
Tenant 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 Landlord by reason of any such claim, except
such claims arising directly or indirectly out of Landlord's sole act or omission. Tenant
further covenants that Tenant will satisfy all outstanding liens, or other debts. Tenant,
on notice from Landlord, shall resist or defend such action or proceeding forthwith.
13. ASSIGNMENT:
13a. Assignment/Subletting: This lease or any part hereof shall not be assigned
by Tenant, by operation of law or otherwise, nor shall the premises or any part thereof
be sublet without the prior written consent of Landlord, which consent shall not be
unreasonably withheld, subject to Landlord'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, Landlord'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 Tenant's obligations under this lease, to
the same extent as if it were the original Tenant. If Tenant is a corporation, the transfer
of a majority of Tenant's stock shall constitute an assignment for purposes of this
paragraph.
13b. Subletting: Tenant may not sublet any portion of the Premises.
13c. Subsequent Consent Required: In the event written consent to assignment
or subletting shall be given by Landlord, no other subsequent assignment, assignments,
or subletting shall be made by such assignee or assignees, or subTenant, without the
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prior written consent of Landlord. It is expressly agreed that if consent is once given by
the Landlord to the assignment of this lease or any interest therein or to the subletting
of the whole or any part of the premises, then Landlord shall not be barred from
afterwards refusing to consent to any further assignment of said lease or subletting of
said leased premises.
13d. Release of Tenant's Liability: No subletting shall release Tenant of Tenant's
obligation to pay the rent and to perform all other obligations to be performed by
Tenant hereunder for the term of this Lease. No assignment shall so release Tenant
unless Landlord's consent is obtained pursuant to Paragraph 13.c. In the event that
Landlord's consent to assignment is so obtained, Tenant shall be relieved of all liability
arising from this lease and arising out of any act, occurrence or omission occurring after
Landlord's consent is obtained. The Tenant's assignee shall be deemed to have assumed
and agreed to carry out all of the obligations of Tenant under this lease.
14. DEFAULT:
14a. 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 Landlord, the
Tenant 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 Tenant to be kept and performed, or if Tenant shall fail to comply
with any of the statutes, ordinances, rules, orders, regulations, and requirements of the
federal, state, and city governments, or if Tenant 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 Landlord may, if it so elects, at any time thereafter,
terminate this lease and the term hereof, on giving to the Tenant thirty (30) days'
notice, in writing, of the Landlord's intention to do so if the event causing the default is
not corrected.
14b. Additional Security: In the event of default, as provided above, which
default remains uncured for more than ten (10) days after Landlord provides notice of
default, Landlord may request and Tenant 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 Landlord, a surety bond, or a letter of credit. Tenant's failure to provide
adequate assurance within twenty (20) days of receipt of a request by Landlord shall
constitute a material breach and Landlord may in its discretion terminate this lease.
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14c. Termination of Lease: Upon the expiration of either of the notice periods
specified in Paragraphs 14.a or 14.b 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 Tenant herein specified, shall expire and come to an end on the day fixed in
such notice, except that Tenant's obligation and liability for any unpaid rentals or other
charges heretofore accrued shall remain unabated. Landlord 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 Landlord shall not be liable for
damages by reason of such re-entry or forfeiture.
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
Tenant who is a natural person, his or her personal representative and heirs.
16. RIGHT OF INSPECTION. Tenant will allow Landlord, or Landlord'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 Landlord.
17. CONDEMNATION: If the whole or any substantial part of the Premises shall
be condemned or taken by Landlord 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 Tenant or Landlord shall have the right to cancel this
lease and declare the same null and void. At the Tenant's option, Tenant may 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 Landlord, 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 Tenant's improvements
located on the premises shall belong to and be awarded to Tenant.
18. SURRENDER OF PREMISES: Tenant 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 Tenant, shall be and remain the property of the
Landlord 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. Tenant shall
repair at its sole expense any damage to the Premises occasioned by its use thereof, or
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by the removal of Tenant's trade fixtures, furnishings and equipment which repair shall
include the patching and filling of holes and repair of structural damage.
19. INSURANCE:
19.a. Personal Property: Tenant, at its expense, shall maintain in force during
the Term a policy of special form —causes of loss or all risk property insurance on all of
Tenant's structures, alterations, improvements, trade fixtures, furniture and other
personal property in, on or about the Premises, in an amount equal to at least their full
replacement cost. Any proceeds of any such policy available to Tenant shall be used by
Tenant for the restoration of Tenant's alterations, improvements and trade fixtures and
the replacement of Tenant's furniture and other personal property. Any portion of such
proceeds not used for such restoration shall belong to Tenant.
19.b. Liability Insurance: Tenant, at its expense, shall maintain in force during
the Term the following types of insurance (or equivalents): a policy of commercial
general liability insurance (including premises liability), with the following limits:
$1,000,000 per occurrence, $2,000,000 annual aggregate. Landlord shall be named as
an additional insured on Tenant's liability insurance solely with respect to the
operations of the named insured (i.e., Tenant) and that coverage being primary and
non-contributory with any other policy(ies) carried by, or available to, the Landlord. The
Tenant shall provide the Landlord with written notice of any policy cancellation, within
two business days of their receipt of such notice.
19.c. Insurance Policies: Insurance required hereunder shall be written by a
company or companies acceptable to Landlord. Landlord reserves the right to establish
and, from time-to-time, to increase minimum insurance coverage amounts. Insurance
required herein shall provide coverage on an occurrence basis, not a claims-made basis.
Notice of increased minimum insurance coverage amounts shall be sent to the Tenant at
least ninety (90) days prior to the annual renewal date of the Tenant's insurance. Prior
to possession the Tenant shall deliver to Landlord documents, in a form acceptable to
Landlord, evidencing the existence and amounts of such insurance. Tenant shall, prior
to the expiration of such policies, furnish Landlord with evidence of renewal of such
insurance, in a form acceptable to Landlord. Tenant shall not do or permit to be done
anything which shall invalidate the insurance policies referred to above. Tenant shall
forthwith, upon Landlord's demand, reimburse Landlord for any additional premiums
for insurance carried by Landlord attributable to any act or omission or operation of
Tenant causing such increase in the cost of insurance. If Tenant shall fail to procure and
maintain such insurance, then Landlord may, but shall not be required to, procure and
maintain the same, and Tenant shall promptly reimburse Landlord for the premiums and
other costs paid or incurred by Landlord to procure and maintain such insurance.
Failure on the part of the Tenant to maintain the insurance as required shall constitute a
LEASE AGREEMENT
City of Renton to Rainier Flight Service Inc
a Washington Limited Liability Corporation
13
material breach of the lease, upon which the Landlord may, after giving five business
days notice to the Tenant to correct the breach, terminate the Lease or, at its discretion,
procure or renew such insurance and pay any and all premiums in connection therewith,
with any sums so expended to be repaid to the Landlord on demand.
19.d. Waiver of Subrogation: Tenant and Landlord 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. Tenant 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. LIMITATION UPON LANDLORD'S LIABILITY: Landlord 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 constitutes 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 Tenant or other occupants of the building, or their agents, servants, employees or
invitees thereof.
21. INDEMNITY: Tenant covenants to defend, indemnify and save harmless
Landlord against any and all claims arising from (a) 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 (b) arising from any act or negligence of
the Tenant or any of its agents, contractors, patrons, customers, or employees, or
invitees, or (c) 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 Landlord by reason of any
such claim, except such claims arising directly or indirectly out of Landlord's sole act or
omission. Tenant, on notice from Landlord, shall resist or defend such action or
proceeding forthwith with counsel reasonably satisfactory to, and approved by
Landlord.
22. TAXES: Tenant shall be responsible for the payment of any and all taxes and
assessments upon any property or use acquired under this agreement.
LEASE AGREEMENT
City of Renton to Rainier Flight Service Inc
a Washington Limited Liability Corporation
14
23. HOLDING OVER: If, without execution of any extension or renewal of this
lease Tenant should remain in possession of the premises after expiration or
termination of the term of this lease, then Tenant 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.
24. NO WAIVER: It is further covenanted and agreed between the parties
hereto that no waiver by Landlord of a breach by Tenant 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 Landlord of
rent after any breach by the Tenant of any covenant or condition by Tenant to be
performed or observed shall be construed to be payment for the use and occupation of
the premises and shall not waive any such breach or any right of forfeiture arising
therefrom.
25. 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
Landlord, at the following address:
Airport Administration Office
616 West Perimeter Road-Unit A
Renton, Washington 98055
and in case of any notice unto Tenant, to the address of the Premises, or such address
as may hereafter be designated by either party in writing.
26. DISCRIMINATION PROHIBITED:
26a. Discrimination Prohibited: Tenant 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.
Tenant 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 Tenant may make.
reasonable and non-discriminatory discounts, rebates, or other similar types of price
reductions to volume purchasers.
26b. 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
LEASE AGREEMENT
City of Renton to Rainier Flight Service Inc
a Washington Limited Liability Corporation
15
R � w
7
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.
26c. Application to Sub-leases: Subject to the provisions of Paragraph 13 of this
Lease, Tenant agrees that it will include the above clause in all assignments of this lease
or sub-leases, and cause its assignee(s) and sub-Tenant(s)to similarly include the above
clause in further assignments or sub-leases of this Lease.
27. 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 Tenant from the prompt payment of rent, or any
other payment required by the terms of this Lease, to be made by Tenant.
28. CAPTIONS: Article and paragraph captions are not a part hereof.
29. ENTIRE AGREEMENT: This Lease contains all agreements of the parties with
respect to any matter mentioned herein. No prior agreement or understanding
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.
30. 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.
31. CORPORATE AUTHORITY: If Tenant 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.
32. TRANSFER OF PREMISES BY LANDLORD: In the event of any sale,
conveyance, transfer or assignment by Landlord of its interest in the Premises, Landlord
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 Landlord's transferee shall be deemed to have assumed
LEASE AGREEMENT
City of Renton to Rainier Flight Service Inc
a Washington Limited Liability Corporation
16
Nwe .00*
and agreed to carry out all of the obligations of the Landlord under this Lease, including
any obligation with respect to the return of any security deposit.
LEASE AGREEMENT
City of Renton to Rainier Flight Service Inc
a Washington Limited Liability Corporation
17
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1%w ti.r
TENANT: LANDLORD:
CITY OF RENTON
A Washington Corporation a Washi on Municip I orporation
By: By:
Its: r Airport Manager
Date: Date: /7//
LEASE AGREEMENT
City of Renton to Rainier Flight Service Inc
a Washington Limited Liability Corporation
18
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EXHIBIT A
LEASE AGREEMENT
City of Renton to Rainier Flight Service Inc
a Washington Limited Liability Corporation
19
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SURVEYED WHP CHECKED BY: CITY OF RENTON
DRAWN BY: EJV APPROVED BY.:
LAST EDIT., 3124109 PLOT DATE: o3124109
DATE BY REV REVISION LEASE PARCEL 800
WHP&cilic
REVISION CK CK'D APPR.
EXHIBIT "A" 12100'WA90Sf,91e�o
Bo9cdl,WA 96011
RENTON WA 4254514900 Fmc 425.951.4509
SCALE: PROJECT NO. DRAMNG FiLE NAME: """"'"f� '`a"
1'=100' 035066 35066—SURV—EX—L j
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