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HomeMy WebLinkAboutLease LAG #001-87 LEASE AGREEMENT (City of Renton to Boeing Employees Flying Association, Inc.) THIS INDENTURE OF LEASE executed in triplicate, effective as of January 1, 1987, by and between the CITY OF RENTON, a municipal corporation, hereinafter referred to as Lessor; and BOEING EMPLOYEES FLYING ASSOCIATION, INC. hereinafter referred to as Lessee: WITNESSETH: 1 . PREMISES LEASED: In consideration of the covenants and agreements of the Lessee hereinafter set forth, Lessor does hereby lease and demise unto Lessee the following described unimproved parcels of real estate accepted by the Lessee in their "as is" condition, being located within the confines of the Renton Airport, Renton, King County, Washington, to-wit: See Exhibit "A" Legal Description and Exhibit "B" Lease Map attached hereto and made a part hereof as if fully set forth herein, describing: basic ground lease area and Parking Lot B. SUBJECT to restrictions and reservations of record and as further set forth herein; 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, and subject to such rules and regulations as now exist or may hereafter be promulgated by the Lessor from time to time, and further subject to all such non-discriminatory charges and fees for such use as may be established from time to time by Lessor; on the terms and conditions herein- after set forth for a period of thirty-three years commencing on the 1st day of January, 1987 and terminating on the 31st day of December 2019, subject to the conditions, however, specified in paragraphs 17 and 18 hereinbelow. 2. RENTAL PAYMENTS: As rental for the above-described premises during said initial lease term, Lessee shall and will pay unto Lessor a monthly rental as detailed below, payable promptly in advance on the first day of each and every month, and as further set forth in paragraph 18 hereinbelow. All such payments shall be made to the Director of Finance, Municipal Building, Renton, Washington. Initial Lease Term for Rates listed below shall be JANUARY 1, 1987 through MAY 31, 1990. RENTAL PAYMENT SCHEDULE Basic Ground Lease Area = 124,837.90 sq. ft. Parking Lot A = 7,200.00 sq. ft. SUBTOTAL = 132,037.90 sq. ft. @ $.14 sq.ft.per year = $ 1,540.44 per month, plus Seaplane Ramp Rental = $ 138.13 per month TOTAL = $ 1,678.57 per month (plus Leasehold Tax) LAG #001-87 Now LATE PAYMENT CHARGES It is hereby further agreed that if such rental is not paid before the 10th of each month then there would be added a late payment charge of 5% per month from the 1st of the month. It is agreed that this late payment charge is a reasonable estimate of the increased cost to the City of the staff effort to monitor and collect on late payments as well as related City expenses due to such late payment. ATTORNEY'S FEES AND COLLECTIONS: Should it be necessary to refer this lease to any attorney for collection, litigation, or other court action involving breach or lease occupancy after termination, enforcement of any other right and duty under this lease then it is agreed that the prevailing party at litigation should be entitled to reasonable attorney's fees to be 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. PURPOSE OF USE: Above-described premises and the structures located thereon are leased to the Lessee for the following described purposes: Operation of Flight Training and Aircraft Storage Facilities, together with aircraft repair and mainten- ance, management of leased Seaplane Ramp, and fuel service. Lessee covenants 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. No advertising matter or signs shall be at any time displayed on the leased premises or the structures thereat without the written approval of Lessor. 4. MAINTENANCE OF PREMISES: The leased premises and all the improvements or structures thereon shall be used and maintained by Lessee in a neat, orderly and sanitary manner; and shall be kept well painted by Lessee in such prevailing color scheme as may be from time to time established and required by Lessor for such Airport so that the leased premises and structures located thereon shall be kept and operated in a reasonable harmony with other structures and color schemes on said Airport. Lessee further covenants to keep and operate the leased premises and all structures, improvements, and activities in conformity with all rules, regulations and laws now or hereafter adopted by Lessor City or the Civil Aeronautics Authority or State Aeronautics Commission, or other duly constituted governmental authority, all at Lessee's cost and expense. 5. TITLE TO IMPROVEMENTS: As further consideration for this Lease, it is stipulated and agreed that at the expiration of the renewed term of this Lease as provided in paragraph 1 herein contained or at any other termination of this Lease, all structures and any 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, and none of such improvements now or hereafter placed on the -2- LAG #001-87 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. 6. IMPROVEMENTS: Lessor shall not be called upon to make any improvements. alteration or repair of any kind upon said premises and Lessee covenants that he will not permit any waste, damage or injury to the premises or improvements, nor to allow the maintenance of any nuisance thereon, nor the use thereof for any illegal purposes or activities, nor for any purpose or operation preventing the maintenance of fire insurance on the said improvements or activities. 7. CHARGES PAID BY LESSEE: 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 City, 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. Lessee hereby agrees and covenants to pay unto Lessor that certain Leasehold Excise Tax as established by Chapter 61, Laws of 1765-76, 2nd EX Session (44th Legislative Session) which said tax shall be in addition to the stipulated monthly rental and 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. 8. HOLD HARMLESS: Lessee covenants to indemnify and save harmless Lessor City against any and all claims arising from the conduct and management of, or from any work or thing whatsoever done in or about, the demised premises or the improvements or equipment thereof during said 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 or any person, persons or corporation occurring during said term on, in or about the leased 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 be brought against the Lessor City by reason of any such claim, Lessee, on notice from Lessor, shall resist, defend or settle such action or proceeding forthwith. 9. RISK OF DAMAGE OR LOSS: It is further agreed that all personal property in said demised 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 personal property, sustained by Lessee or other persons, due to the buildings or said demised premises or any part or appurtenance thereof becoming out of repair. 10. LIABILITY INSURANCE: Lessee shall keep in full force and effect at all times during this Lease term adequate public liability and property -3- LAG #001-87 ..rr damage insurance, written by a company authorized to do business in the State of Washington, with limits of not less than $300,000/$500,000 and $100,000 respectively, and Lessee shall promptly furnish unto Lessor evidence of such insurance by furnishing unto Lessor a copy of each policy of insurance or a certificate thereof evidencing such coverage. 11. ASSIGNMENT: This lease or any part hereof shall not be assigned by Lessee, or by operation of law, or otherwise, nor said premises or any part thereof sublet without the written consent of Lessor endorsed thereon; and in the event such written consent shall be so given, no other subsequent assignment, assignments or subletting, shall be made by such assignee or assignees, or sublessee, without previous consent of Lessor endorsed thereon; and in the event such written consent shall be so given, no other subsequent assignment, assignments or subletting, shall be made by such assignee or assignees, or sublessee, without previous consent of Lessor first had and obtained in writing. 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 said leased premises, then Lessor shall not be barred from afterwards refusing to consent to any further assignment of said Lease or subletting of said leased premises. 12. CONTINGENCIES: It is expressly understood and agreed that Lessor holds and operates said Airport and the demised premises under and subject to a grant and conveyance thereof to Lessor City 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 County Auditor of said 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 stipulated and agreed that the Lessee also accepts and will hold and use this Lease and the respective demised 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. Nothing in this Lease contained shall operate or be construed to prevent or hinder the future development, improvements or operation of said Renton 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 said Renton Airport. 13. RIGHTS OF LESSOR ON LESSEE'S DEFAULT: It is expressly understood and agreed that in case the demised 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. -4- LAG #001-87 '411111, 'vett of any of the 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 Government, 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 ten (10) days notice in writing of the Lessor's intention so to do. Upon the expiration of said ten (10) day notice, 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 chattels therefrom, and Lessor shall not be liable for damages by reason of such re-entry or forfeiture. 14. All terms, conditions and provision of this lease agreement shall be binding upon Lessee, his successors and assigns, if any. 15. CONDEMNATION: If the whole or any substantial part of the premises hereby leased shall be condemned or taken by any County, State or Federal authority for any purpose, then the term of this Lease shall cease on 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, and 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. 16. NOTICES: Any notice required to be given or served in accordance with the provisions of this Lease shall be sufficiently given and served if delivered in writing to a party, or if sent by registered mail , postage prepaid, to the other party's last known mailing address. 17. RENTAL RENEGOTIATION: Said rental payments as specified in paragraph 2 hereof shall continue until the thirty-first day of May 1990. 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) However, the City retains the option of renegotiating every five (5) years, at its sole discretion. Minimum base rental for any extended period, that is after May 31, 1990, shall not be less than the aforespecified rental of $1,678.57 per month. If, however, the parties are unable to agree upon such adjusted rental for the ensuing three (3) five period, within thirty (30) days prior to the commencement of each such consecutive three (3) year period, then the parties shall submit the matter of rentals for such ensuing three (3) year period to arbitration. Lessee shall select one arbitrator and Lessor likewise select one and the two so chosen, if unable to agree within a period of thirty (30) days after such appointment, shall select a third one and the decision of the majority of such -5- LAG #001-87 Noe *se arbitrators shall be final and binding upon the parties hereto. The arbitrators shall be experienced real estate appraisers and be knowledgeable in the field of comparable rentals and use charges in King County and shall likewise give due consideration to any change in economic conditions from the preceding rental period. Each party shall pay for and be responsible for the fees and costs charged by the arbitrator selected by him and the fee of the third arbitrator, if any, shall be shared equally between them. 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 aforesaid rental rates. The arbitrator shall make the decision in writing, within sixty (60) days after their appointment, unless the time is extended by the agreement of both parties. The readjusted rental in each case, whether determined by arbitration or by agreement of the parties themselves, shall be effective as of the commencement of each such three (3) year rental terms. 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 and shall not make any alterations, additions or improvements to the premises without the prior written consent of the Lessor; all 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. 19. FIRE INSURANCE: Lessee further agrees in addition to the insurance requirements herein set forth, to take out and keep in full force and effect during the full term of this Lease, or any extension or renewal thereof, a policy or policies of fire insurance, together with extended coverage, in standard form, in a company or companies acceptable to and approved by Lessor and in an amount at least equal to the replacement cost of such improvements; such policy or policies shall name the Lessor as an additional insured as its interest may appear, and true copies of such policy or policies or a certificate of insurance evidencing such coverage shall be promptly furnished unto Lessor at all times. Such policy shall not be canceled or voided unless at least ten (10) days' written notice prior thereto has been furnished unto Lessor. 20. HOLDING OVER: If, without execution of any extension or renewal , Lessee should remain in possession of the premises after expiration or termination of the terms of this Lease, then Lessee shall be deemed to be occupying said 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. 21. WAIVER OR BREACH: 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; also that all covenants, conditions, and agreements herein contained shall extend to and be binding on the heirs, executors, administrators, successors and assigns of the parties hereto. The acceptance -6- LAG #001-87 Www" wr 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 and occupation of the demised premises and shall not waive any such breach or any right of forfeiture arising therefrom. 22. NOTICES: All notices under this Lease shall be in writing and delivered in person or sent by certified or registered mail unto Lessor at the following address, to-wit: Airport Director Renton Municipal Building Renton, Washington 98055 and in case of any notice unto Lessee, then to the premises leased hereunder, or such address as may hereafter be designated by either party in writing. 23. OPTION TO RENEW: 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 for a further term of ten (10) years. The rental for each three (3) year period (or partial period) shall be ascertained as set forth in paragraph 17. Notice of the exercise of such option shall be given by Lessee unto Lessor at least ninety days prior to the expiration of the original term of this Lease, which notice must be in writing; and it is expressly agreed by and between the parties hereto that time is of the essence in the giving of said notice. 24. NON-DISCRIMINATION: Lessee covenants and agrees not to discriminate against any person or class of persons by reason of race, color, creed, national origin, mental sensory or physical handicap 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 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. CITY OF R NTON, a Municipal �� f Corporat' �n /.f_/ ��L ..--c 6i / , BOEING EMPLOYEES FLYING ASSOC. , INC. Mayor eii,2z o tern L SSEE LESSOR 7._/-7_, 7 City Clerk APPRD AS TO LEGA5f 4'' I City Attorney -7- LAG #001-87 STATE OF WASHINGTON ) ) ss COUNTY OF KING ) This is to certify that on this ,`µ` day of LJu3, 1887 before me, the undersigned Notary Public, personally,, appeared J maS U)• f r lln m and .Y��e. �I ,8-, r t o-i'or to me known 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. Given under my hand and official seal this day of ,-J-T.k (�.� 1987. Jt , cl ko-L0-45-A. Notary P a is in and for the State of Washington, residing at Renton ktnq GIAJJK°(-cq -8- LAG #001-87 Noe STATE OF WASHINGTON) )ss COUNTY OF KING ) THIS is to certify that on this 1D day of &L'LLN, 197 before me, the undersigned Notary Public, personally appeared and to me known to be the "i'(la--1._r v-- � � �d � �G - : and L. acknowledged to me that J executed the foregoing instrument for said � as its free and voluntary act and deed, for uses and purposes therein stated, and upon oath stated that such execution of said instrument by iL., is duly and regularly authorized. GIVEN under my hand an official seal the date last above stated. czoval,, # Notary Public in and for the State of Washington, residing ate.{ -9- New `or LAG 001-87 EXHIBIT "A" BOEING EMPLOYEES FLYING ASSOCIATION 1. BASIC GROUND LEASE AREA: That portion of the Northwest Quarter of Section 17, Township 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 87°30 ' 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 4°49' 43" West a distance of 294.74 feet to a ;point referred to as Runway Station 0+00; Thence North 4°49' 43" West a distance of 4272.63 feet; Thence South 85°10' 17" West a distance of 375.00 feet to the True Point of Beginning; Thence South 84°50 ' 50" West a distance of 373.05 feet; Thence North 2°05' 50" East a distance of 109.27 feet; Thence North 00°10 '25" East a distance of 90.06 feet; Thence North 1'31 ' 17" West a distance of 159.48 feet; Thence North 4°53' 45" East a distance of 14.99 feet; Thence North 85°l0 ' 17" East a distance of 170.00 feet; Thence South 4'49' 43" East a distance of 40.00 feet; Thence North 85'10 ' 17" East a distance of 170.18 feet; Thence South 4°49' 43" East a distance of 330.07 feet to the True Point of Beginning. TOTAL BASIC GROUND LEASE AREA: 124,837.90 square feet. • lose LAG 001-87 EXHIBIT "A" Boeing Employees Flying Association Page Two 2. PARKING LOT A: Beginning at a point located on the Renton Airfield Runway Centerline referred to as STA 0+00; Thence North 4°49'43" West along the runway centerline a distance of 4,443.19 feet; Thence South 85°10 ' 17" Westerly a distance of 770.72 feet to a point intersecting the centerline of Perimeter Road; thence continuing along the centerline of Perimeter Road South 1'34 ' 02" Easterly a distance of 220.00 feet; Thence South 88°25 '58" Westerly a distance of 14.00 feet to the True Point of Beginning; Thence South 88°25'58" Westerly a distance of 45.00 feet; Thence North 1°34' 02" Westerly a distance of 160.00 feet; Thence North 88°25 '38" Easterly a distance of 45.00 feet; Thence South 1°34' 02" Easterly a distance of 160.00 feet to the True Point of Beginning. TOTAL AREA PARKING LOT A: 7,200.00 square feet. 3. WILL ROGERS-WILEY POST SEAPLANE BASE RAMP AREA, described as follows: Beginning at a point located on the Renton Airfield Runway centerline referred to as STA 0+00; Thence North 4°49' 43" West along the runway centerline a distance of 5,262.50 feet; Thence South 85°10 ' 17" West a distance of 300 feet; Thence North 4°49'43" West a distance of 143.98 feet to the T.P.O.B. , said point also being the Northeast corner of the Airport Restaurant; Thence North 87°20'55" West along the Northerly property line of the Airport Restaurant a distance of 161.50 feet; LAG 001-87 EXHIBIT "A" Boeing Employees Flying Association Page Three 3. WILL ROGERS-WILEY POST SEAPLANE BASE RAMP AREA Continued Thence North 02°39' 05" East a distance of 20.00 feet; Thence South 87°20 '55" East a distance of 223.18 feet; Thence South 02'39' 05" West a distance of 20.00 feet; Thence North 87'20 '55" West a distance of 61.68 feet to the True Point of Beginning. TOTAL AREA SEAPLANE BASE RAMP: 4,463.66 square feet. 1F.04:WJA:mf 5/12/87 • if ` ` g • * Cle Ref: ESTOFPEL CERTIFICATE LAG 11001-$7 . • • The undersigned, being the present owner and lessor of certain land and premises located in the City of Renton , County'of King • and State of Washington , as more fully described in a Lease Agreement dated January 1 , 1987 by and between the undersigned as "Lessor" and Boeing Employees .Flying Association as "Lessee" t ere n(hereinafter referred to as the "Ground Lease"), understands that you are about to make a loan in the amount of $ 70, 856 to be . secured by a mortgage or deed of trust encumbering the Lessee's interest in the • Ground Lease and the leasehold estate created thereby. The undersigned further understands that it is a condition to the making of said loan that this certification be furnished to you. Accordingly, and with the knowledge that you will be relying upon the statements herein made, the undersigned hereby cer- tifies as follows: 1. That the Ground lease is in full force and effect and has not been . . • assigned, modified, supplemented or amended in any way other than by . - the following agreements: (See letter dated November 9, 1987) • • . and that there shall be no mutual cancellation, surrender or modifica- - tion of the Ground Lease without your prior written consent. 2. That there is no default under the Ground Lease in the payment of rent or in the observance or performance of any other covenant or condition to be observed or performed by Lessee and that the under- signed has no knowledge of any state of facts which, with the giving of notice, passage of time or both, would constitute a default by Lessee thereunder. • 3. That the undersigned has no knowledge of any prior assignment, except as herein stated, or of any prior hypothecation or pledge of Lessee's interest under the Ground Lease. 4. That the term of the Ground Lease expires on May 31, 1990 and Lessee has the option to renew for 1 renewal terms of 10 years each. 5. That the undersigned consents to the mortgage and assignment of said • Lessee's interest in the Ground Lease to you. Lessee shall , however, remain liable to the undersigned for full performance of all obligations under the Ground Lease. ' : 09-23-86 MF3:16.1R ('')� 6. That the under 'ned, upon serving Lessee witf, tice of any default, shall simultaIi sly serve a copy thereof upon you and notice shall not • be deemed to have been served upon Lessee unless the undersigned shall simultaneously serve a copy of such notice upon you. Upon receipt of written notice of any default of Lessee, you shall have the same period, after service of such notice upon you, to remedy or cause to be remedied the defaults complained of and the undersigned shall accept such performance as if the same had been done by Lessee. 7. That in the event the Ground Lease terminates for any reason, including the rejection of the Ground Lease in a bankruptcy pro- ceeding, the undersigned agrees to enter into a new Ground Lease for the"remainder of the term, effective as of the date of such ter- mination at the rent and additional rental and upon the terms, con- ditions, covenants and agreements as contained in the Ground Lease and equal in priority thereto, provided that you shall deliver a written request to the undersigned for such new lease within fifteen (15) days after the notice of termination has been served upon you together with all sums then due to the undersigned under the Ground Lease and you shall agree to perform and observe all covenants contained therein on Lessee's part to be performed and shall further remedy any and all other defaults of Lessee then in existence capable of performance by you. If the Ground Lease terminates because of bankruptcy of Lessee, you shall not be requested to cure such default prior to the execution of a new lease. 8. That you may be named as your interest shall appear on any standard mortgage endorsement bn any and all insurance covering the Leased Premises, the improvements or any part thereof; 9. That any restrictions on assignment of the Ground Lease, including those which may require the consent of the undersigned, shall not be binding upon or applicable to you, subject to compliance with Paragraph 3, "Purpose of Use", of Lease Agreement LAG 001-87 between the City of Renton and Boeing Emp. Flying As The undersigned further agrees that you shall not be liable under the Ground Lease following assignment or other dis— position of the Lessee's leasehold estate nor be responsible for obligations under the Ground Lease unless and until you shall become the owner of the Lessee's leasehold estate, at which time you shall pay ' all sums then due to the Lessor under the Ground Lease. 10. That the statements herein made shall be binding upon the undersigned, our successors and assigns, and inures to your benefit and the benefit of your successors and assigns. IN WITNESS WHEREOF, this certificate has been duly executed and delivered as of the /g_c_ day of 19 4 7 LESSOR: • By: — %I/MAN MAYOR APS VEO: OAAJL,n24� Air 411ATTEST City Att� C�� - r City Clerk I1 November 9, 1987 Richard C. Houghton Public Works Director City of Renton 010W00 200 Mill Avenue South Renton, WA 98055 RE: LEASE TO BOEING EMPLOYEES' FLIGHT CLUB Dear Mr. Houghton: We have reviewed your June 4 letter and the enclosed Estoppel Certificate. Peoples National Bank of Washington ( "Peoples" ) , as lender to the Boeing Employees Flight Club, is taking a security interest in a hangar building measuring 4,800 square feet and in an office and reception building measuring 1,440 square feet, as well as a collateral assignment of the club' s leases from the City of Renton covering the property on which these improvements are located. Apparently the leasehold improvements were erected on the premises during the tenancy of a prior lessee, and are considered leasehold improvements owned by the Flight Club under and subject to the terms of its lease with the City of Renton. In addition, Peoples is also taking a collateral interest in any equipment which may have become fixtures in these two buildings, including but not limited to: Evergreen Mobile Home Peoples will accept the City' s refusal to waive all its rights against the leasehold improvements, fixtures and equipment, with the understanding that: 1) The City of Renton acknowledges and consents to Peoples' superior right to all equipment and to all fixtures and, during the life of the lease, Peoples ' superior right to the above mentioned leasehold improvements. 2) The City of Renton agrees that during the life of the lease, and so long as Peoples retains its collateral rights in this property, Peoples may exercise any of its rights as a secured party, whether they are granted by the Uniform Commercial Code or any other source, and even if such remedies require the presence of Peoples employees on the leased premises. 3) The City of Renton will give Peoples at least 10 days' advance notice of any default and any intent to retake the premises, as specified in paragraph 6 of the -Estoppel Certificate provided by the City to" Peoples. 4) If this ground lease terminates for any reason, " the City of Renton will, under the provisions of Ma� As Paragraph 7 of the Estoppel Certificate identified above, enter a new ground lease only with Peoples, "y* and no other party if Peoples performs all the applicable requirements under that Paragraph in timely fashion. 5) The City of Renton will do everything necessary to enable Peoples to perfect its assignment of lease and security interests in the subject property including, but not limited to, recording its lease to the Borrower. Sincerely, 1)()LCI\CU.Q f ' J Michael Miller I hereby agree, on behalf of the City of Renton, to the five conditions set forth in the above letter. Dated this day of , 1917 . City of Renton BY 11LL iceJ . S ,oG Its ,417rr �,y dA.,- • ESTOP PEL CERTIFICATE .1 der: LAO 4 001-87 • • • • • The Undersigned, being the present owner and lessor of certain land and premiseslocated in the City of Renton , County'of King and State of Washington , as more f illj7 Described in a Lease Agreement dated January . 1§87,, by and between the undersigned as "Lessor" and BoeingEmployees Flying Association as "Lessee" tEiT—iin Therelnafter referred to as-the-" rouna-Cease"j, under�s�iid that you are about to make a loan in the amount of $ x_00 to be secured by a mortgage or deed of trust encumbering tete Lessee's interest in the Ground Lease and the leasehold estate created thereby. The undersigned further understands that it is a condition to the making of said loan that this certification be furnished to you. Accordingly, and with the knowledge that you will be relying upon the statements herein made, the undersigned hereby cer- tifies as follows: 1. . That the Ground Lease is in full force and effect and has not been • assigned, modified, supplemented or amended in any way other than by the following agreements: and that there shall be no mutual cancllation; surrender or modifica- • tion of the Ground Lease without your. prior written.consent. 2. That there is no default under the Ground lease in the payment of rent or in the observance or performance of any other covenant or condition to be observed or performed by Lessee and that the under- signed has no knowledge of any state of facts which, with the giving of notice, passage of time or both, would constitute a default by Lessee thereunder. • rrl 3. That the undersigned has no knowledge of any prior assignment, except as herein stated, or of any prior hypothecation or pledge of Lessee's interest under the Ground Lease. 4. That the term of the Ground Lease expires on December 31 , 2019 and Lessee has the option to renew for 1 renewal terms of 10 years each. 5. That the undersigned consents to the mortgage and assignment of said Lessee's interest in the Ground Lease to you. Lessee shall, however, remain liable to the undersigned for full performance of all obligations under the Ground Lease. ' ' 6. That the un `.l+''' igned, upon serving Lessee w,`` notice of any default, shall simultaiirously serve a copy thereof upon you and notice shall not be deemed to have been served upon Lessee unless the undersigned shall simultaneously serve a copy of such notice upon you. Upon receipt of written notice of any default of Lessee, you shall have the same period, after service of such notice upon you, to remedy or cause to be remedied the defaults complained of and the undersigned shall accept such performance as if the same had been done by Lessee. 7. That in the event the Ground Lease terminates for any reason, including the rejection of the Ground Lease in a bankruptcy pro- ceeding, the undersigned agrees to enter into a new Ground Lease for the remainder of the term, effective as of the date of such ter- mination at the rent and additional rental and upon the terms, con- ditions, covenants and agreements as contained in the Ground Lease and equal in priority thereto, provided that you shall deliver a written request to the undersigned for such new lease within fifteen (15) days after the notice of termination has been served upon you together with all sums then due to the undersigned under the Ground Lease and you shall agree to perform and observe all covenants contained therein on Lessee's part to be performed and shall further remedy any and all other defaults of Lessee then in existence capable of performance by you. If the Ground lease terminates because of bankruptcy of Lessee, you shall not be requested to cure such default prior to the execution of a new lease. U. That you may be named as your interest shall appear on any standard mortgage endorsement bn any and all insurance covering the Leased Premises, the improvements or any part thereof; 9. That any restrictions on assignment of the Ground Lense, including those which may require the consentof the underpinned, slinll not be binding upon or applicable to you, subject to complinnce with Pnrngrnpli 3 , "Purpose of Use", of Lense Agreement LAG ' between the City of Renton and The undersigned nfurther be linbke under the GroundLensefollowingnsnignmen t,aort Yshallou otherdis-ot position of the Lessee's lensehold estate nor be responsible for obligntionn under the Ground Lense unless and until you nhnll become the owner of the Lessee's lenneliold entnte, nt which time you shall pay ' nil sums then due to the Lessor under the Ground Lense. 10. That the ntntementn herein made shall be binding upon the undersigned, 1f our nuccensors nnd. nssigns, and inures to your benefit and the benefit of your succennors and assigns. IN WITNESS WHEREOF, this ertificnte has been duly executed and delivered as of the 9.a day of . LESSOR: Y .Z_ C).t., \,Av, w a. MAYOR AP ;ROVED: _ AT resr Ci y tt.r- ey City Cleric .