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Home My WebLink AboutAdden 16 � LAG 84-006 � Amendment 16-17 a � e � AMENDMENT TO LEASE AGREEMENT � � (City of Renton to Aerodyne LLC) � � � THIS AMENDMENT to Lease Agreement LAG 84-006 is effective as of September � 1, 2017. � RECITALS: �. 8 WHEREAS, under lease agreement LAG 84-006 (also known as LAG 006-84) (the � Lease), executed September 1, 1984, and assigned under Addendum 12-06, as � subsequently amended, the City of Renton (Lessor) leased to Aerodyne LLC (Lessee) � certain land on the Renton Municipal Airport, Renton, Washington; and � �: WHEREAS, the Lease was extended to August 31, 2026 under the operation of � the terms of Addendum 02-97 to permit agreement PAG-97-003; and � WHEREAS, Aerodyne LLC leases two parcels inside the airport perimeter fence, � consisting of 42,936 square feet and 34,112 square feet, for a total leased area inside � the fence of 77,048 square feet; and ; � WHEREAS, Aerodyne LLC also leases two parking lot parcels outside of the perimeter fence, consisting of a west parking lot of 4,518 square feet and an east parking lot of 1,466 square feet, for a total parking lot leased area of 5,984 square feet; � , and � s � Y WHEREAS, on September 1, 2014, through a lease arbitration process, a new � land rental rate for the 77,048 square feet of land area inside the perimeter fence was � established at $0.7252 per square foot per year, and continuing until September 1, � 2017; and � WHEREAS, through the same lease arbitration process, a new land rental rate for the two parking lot areas, consisting of 5,984 square feet outside the perimeter fence, was established at $0.48 per square foot per year, or 66%of the land rental rate � because of their limited marketability ($0.7252 x .66 = $0.48), and continuing until � September 1, 2017; and � � WHEREAS, the land rental rate is subject to a three-year adjustment based on � Consumer Price Index-Urban (CPI-U) pursuant to Sections 6 and 7 of LAG 84-006 ADD � 13-09; and � � � � f P � aB S � ORIGlI�Ql� � Amendment to Lease Agreement LAG 84-006 1 City of Renton to Aerodyne LLC 6 k I F LAG 84-006 � Amendment 16-17 � f � WHEREAS, Lessor and Lessee agree that the difference between the CPI-U of ? S April 2017, as compared to April 2014, is 6% (261.560/246.616 = 1.06), and this results ` in a ground lease rate increase from $0.7252 to $0.77 per square foot inside the � perimeter fence per year ($0.7252 X 1.06= $0.77), and a ground lease rate increase s from $0.48 to $0.51 per square foot of parking area outside the perimeter fence per � year ($0.48 x 1.06= $0.51); and � WHEREAS, Lessor and Lessee agree that on September 1, 2017, and for the ensuing three (3)year period, the land rental rate for the ground area inside the � � perimeter fence should be adjusted to a rate of$0.77 per square foot per year for the �_ � 77,048 square feet of leased area, resulting in an annual rental amount of$59,326.96 (77,048 x$0.77), and a monthly rental rate of four thousand nine hundred forty-three dollars and ninety-one cents ($4,943.91) ($59,326.96/12= $4,943.91), and continuing until September 1, 2020; and � h �, 4 WHEREAS, Lessor and Lessee agree that on September 1, 2017, and for the � ensuing three (3) year period, the land rental rate for the ground area outside the perimeter fence should be adjusted to a rate of$0.51 per square foot per year for the � 5,984 square feet of leased area, resulting in an annual rental amount of$3,051.84 (5,984 x$0.51), and a monthly rental rate of two hundred fifty-four dollars and thirty- two cents ($3,051.84/12= $254.32). NOW,THEREFORE, IN CONSIDERATION OF THE TERMS AND CONDITIONS HEREIN � CONTAINED AND FOR OTHER GOOD AND VALUABLE CONSIDERATION,THE RECEIPT AND SUFFICIENCY OF WHICH IS HEREBY ACKNOWLEDGED, LESSOR AND LESSEE AGREE " AS SET FORTH BELOW: � � WITNESSETH: � �, 4 1. On the effective date of this amendment, Section 2 of the Lease, is hereby amended � to read as follows: � 2. Minimum Monthly Rent: Lessee shall pay to Lessor a total minimum monthly � rent (Inside the Fence + parking areas) in the amount of five thousand one hundred ; ninety-eight dollars and twenty-three cents ($4,943.91 + $254.32 = $5,198.23), � which amount is one-twelfth of the total annual rent, PLUS leasehold excise tax, � payable promptly in advance on the first day of each and every month during the ` term of the lease. All such payments shall be made to the City of Renton, Renton � Municipal Airport, 616 West Perimeter Road-Unit A, Renton, Washington 98057. � � � 2. All other terms and conditions of the original Lease (including Addenda thereto), � insofar as they are not inconsistent herewith, shall remain in full force and effect. t � k' 4 Amendment to Lease Agreement LAG 84-006 2 � City of Renton to Aerodyne LLC �, � € � � F LAG 84-006 � Amendment 16-17 � � � � � � Aerodyne LLC CITY OF RENTON a Washington Limited Liability Company a Municipal Corporation � � Denis Law ; F Mayor �71�1►1'�V � � Title Jas n Seth � City Clerk i I Z� �/ � � Dat k � $ # Approved as to legal form � f .��e ��—�- � Shane Moloney, City Attorney � � � ��a��uin�,,,� ` .��,� p� RF �� ,,,,� a ,,,, t _.-. . ,,,,,,,,,,,,,,,,,,,r �% � ,� - o --, ; � . ,, y; � = * : SEAL �- * � t i ' � = H % ry-O,'��/� `\�,'0 � � ! \ '��i 'Pp ��4Hu�tNN��, ,�� ° ��ii ��'ATED SEQ��`��, � ��untu�►��`�� t � i. f � c � � Amendment to Lease Agreement LAG 84-006 3 � City of Renton to Aerodyne LLC ; . � F