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HomeMy WebLinkAboutAdden 1 • LAG 08-007 Addendum 01-12 ADDENDUM TO LEASE AGREEMENT (City of Renton to AcuWings LLC) THIS ADDENDUM to Lease Agreement LAG 08-007 is effective as of December 15, 2011. RECITALS: WHEREAS, AcuWings LLC has a Lease Agreement with the City of Renton, LAG 08-007, executed on December 15, 2008; and WHEREAS, on December 15, 2008, the land rental rate for the approximately 54,478 square feet of land area leased by AcuWings LLC was determined to be $0.57 per square foot per year and continuing until December 15, 2011; and WHEREAS, on December 15, 2008, the monthly building rental amount for the 760 Building leased by AcuWings LLC was determined to be $850.00, plus leasehold tax; and WHEREAS, on December 15, 2008,the monthly building rental amount for the 756 Building (Pilot Briefing Building) leased by AcuWings LLC was determined to be $235.37, plus leasehold tax; and WHEREAS, pursuant to LAG 08-007, in a letter dated October 4, 2011, Lessee was notified by certified letter that the lease rate would be readjusted using the Consumer Price Index for All Urban Consumers for Seattle-Tacoma-Bremerton; and WHEREAS, on December 15, 2011, the land rental rate was adjusted, using the Consumer Price Index-Urban, to a rate of$0.5985 per square foot per year for the 54,478 square feet of leased area, resulting in an annual ground rental amount of $32,605.08, and continuing until December 14, 2013; and WHEREAS, on December 15, 2011, the building rental amount for the 760 Building was adjusted, using the increase in the Consumer Price Index-All Urban Consumers for Seattle-Tacoma-Bremerton of five percent (5%), to a monthly rent of $892.50 ($850 x 1.05 = $892.50) and an annual rental amount of$10,710.00 ($892.50 x 12 = $10,710.00), and continuing until December 14, 2013; and WHEREAS, on December 15, 2011, the building rental amount for the 756 Building (Pilot Briefing Building) was adjusted, using the Consumer Price Index-All Urban Consumers for Seattle-Tacoma-Bremerton of five percent (5%),to a monthly rent of $247.14 ($235.37 x 1.05 = $247.14) and an annual rental amount of$2,965.68 ($247.14 x 12 = $2,965.68), and continuing until December 14, 2013; and Lease Agreement LAG 08-007 ORIGINAL 1 City of Renton to Acuwings LLC • • LAG 08-007 Addendum 01-12 WHEREAS, Landlord and Tenant acknowledge that there may be times when periodic rental adjustments should be made based on a means other than reliance on the Consumer Price Index, and agree to amend Section 4 of LAG 08-007 to permit such adjustments. NOW,THEREFORE, IT IS HEREBY AGREED AND COVENANTED BY AND BETWEEN THE CITY OF RENTON AND ACUWINGS LLC AS FOLLOWS: WITNESSETH: 1. Section 4.a. of LAG 08-007 is hereby amended to reflect that the Landlord and Tenant do hereby agree to an annual land rent of$32,605.08 (54,478 x$0.5985), plus leasehold excise tax, for the 54,478 square feet identified in lease LAG 08-007, effective December 15, 2011. 2. Section 4.a. of LAG 08-007 is hereby amended to reflect that the Landlord and Tenant do hereby agree to an annual building rental of$10,710.00 for the 760 Building identified in lease LAG 08-007, effective December 15, 2011. 3. Section 4.a. of LAG 08-007 is hereby amended to reflect that the Landlord and Tenant do hereby agree to an annual building rental of$2,965.68 for the 756 Building (Pilot Briefing Building) identified in lease LAG 08-007, effective December 15, 2011. 4. Section 4.b. of LAG 08-007 is hereby amended to read as follows: 4.b(1).Periodic Rental Adjustment: The Minimum Monthly Rent shall be subject to adjustment on the third (3rd) anniversary of the Commencement Date and every three years thereafter on the anniversary of the Commencement Date (any of which shall hereinafter be referred to as "Adjustment Date") as follows: The Consumer Price Index for All Urban Consumers for Seattle-Tacoma- Bremerton, All Items (1982-84=100) published by the United States Department of Labor, Bureau of Labor Statistics ("Index") which is published nearest, but preceding, the Commencement Date (the "Beginning Index") shall be compared with the Index which is published nearest, but preceding, each Adjustment Date (the "Adjustment Index"). For the first Periodic Rent Adjustment, if the Adjustment Index has increased over the Beginning Index, the Minimum Monthly Rent payable for the following three (3) year period (until the next Adjustment Date) shall be set by multiplying the Minimum Monthly Rent provided for in Section 4.a. of this Lease by a fraction, the numerator of which is the Adjustment Index and the denominator of which is the Beginning Index. The product shall be the "Adjusted Monthly Lease Agreement LAG 08-007 2 City of Renton to Acuwings LLC LAG 08-007 Addendum 01-12 Rent" In no event shall the Minimum Monthly Rent be less than the Minimum Monthly Rent set forth in Section 4.a. of this Lease. 4.b(2) Readiustment of Rental (Other than CPI): Landlord and Tenant do hereby further agree that at least thirty (30) days prior to any Adjustment Date, either party shall, if they desire to adjust the Minimum Monthly Rent for the ensuing three (3)year period by a means other than the Index, provide to the other party a written request for readjustment of the rental rate pursuant to RCW 14.08.120(5). 5. All other terms and conditions of the original Lease Agreement, insofar as it is not inconsistent herewith, shall remain in full force and effect. Acuwings LLC CITY OF RENTON a Washington Corporation a Municipal Corporation i Denis Law Mayor � '�I� �CJ7T7t�r.LClL,�IJ. WGd,L.Gl1'�� Tit a Bonnie Walton City Clerk Date Appr, ved as to legal form City Attorney y Lease Agreement LAG 08-007 `a` 3 City of Renton to Acuwings LLC 'A