The URL can be used to link to this page

Home My WebLink AboutAdden 3• LAG 99 -002 Addendum # 3 -09 ADDENDUM TO LEASE AGREEMENT (City of Renton to Pro Flight Aviation, Inc.) THIS ADDENDUM to Lease Agreement LAG 99 -002, is effective, as of the date of execution by the City of Renton, as indicated on the last page of this addendum. RECITALS: WHEREAS, Pro - Flight Aviation, Inc. (Lessee) leases from the Lessor certain property on the Renton Municipal Airport (the "Leased Property ") pursuant to Lease Agreement LAG 99 -002, as amended by Addendum to Lease Agreement #01 -04 and Addendum to Lease Agreement #2 -08 (collectively, the "Lease "); WHEREAS, Lessee owns and operates a hangar building on the Leased Property, which is located at 540 West Perimeter Road, Renton, Washington 98057 (the "Ham "); WHEREAS, Pursuant to the Lease, Lessee currently uses the Hangar for, among other things, aircraft maintenance services; WHEREAS, Lessee's affiliate, Renton Gateway Center, L.L.C., a limited liability company organized under the laws of the State of Washington ( "Renton Gateway Center "), has negotiated a separate lease with Lessor, which was approved by the City Council on September 14, 2009, for certain other property on the Renton Municipal Airport; WHEREAS, The City Council's approval of the Renton Gateway Center lease was conditioned on Lessee's agreement to cease performing aircraft maintenance services at the Hangar once Renton Gateway Center obtains a certificate of occupancy for the Renton Gateway Center leased property; WHEREAS, While Lessee's ownership interest in the Hangar shall remain unchanged, Lessee intends to relocate and consolidate its business operations onto Renton Gateway Center's leased property; and WHEREAS, The Parties desire to amend the Lease in order to facilitate Lessee's relocation and consolidation of existing operations on the Renton Municipal Airport onto Renton Gateway Center's leased property, which include those aircraft maintenance services currently performed at the Hangar. ORIGINAL Lease Agreement 99 -002 City of Renton to Pro - Flight Aviation, Inc. • • LAG 99 -002 Addendum # 3 -09 NOW, THEREFORE, IT IS HEREBY AGREED AND COVENANTED BY AND BETWEEN THE CITY OF RENTON AND PRO - FLIGHT AVIATION, INC. AS FOLLOWS: WITNESSETH: 1. The Parties agree that Section 3j of the Lease ( "Failure to Maintain Business Office ") shall no longer be of any force or effect. 2. The Parties further agree that Section 2b of the Lease shall amended to read as follows: 2b. Option to Extend Term: In the event that Lessee has fully and faithfully complied with all the terms and conditions of this Lease Agreement through July 31, 2018, Lessor will grant unto Lessee the option to renew or extend this Lease for a further five (5) year term, commencing on the expiration of the initial term hereof and terminating on July 31, 2023, upon the same terms and conditions provided herein. In the event that Lessee has fully and faithfully complied with all the terms and conditions of this Lease Agreement through July 31, 2023, Lessor will grant unto Lessee the option to renew or extend this Lease for a further five (5) year term, commencing on the expiration of the first extended term and terminating on July 31, 2028. Each of the five -year extensions provided for by this Section are conditioned on one of the following: (i) Lessee's ability to document good faith efforts to sell or lease the privately owned hangar building identified as 540 West Perimeter Road to a third party engaged in commercial aeronautical services to the public as defined by the Airport Regulations and Minimum Standards; (ii) Lessee's sale of the privately owned hangar building identified as 540 West Perimeter Road to a third party engaged in commercial aeronautical services to the public as defined by the Airport Regulations and Minimum Standards or, in the event that such a third party cannot be located despite Lessee's good faith efforts, any other third party that satisfies the requirements of the Airport Leasing Policies; or (iii) Lessee's lease, pursuant to Section 13 of this Lease, of the privately owned hangar building identified as 540 West Perimeter Road to a third party engaged in commercial aeronautical services to the public as defined by the Airport Regulations and Minimum Standards or, in the event that such a third party cannot be located despite Lessee's good faith efforts, any other third party that satisfies the requirements of the Airport Leasing Policies. 3. The Parties further agree that Sections 7b, and 7c of the Lease shall amended to read as follows: 7b. Continuous Use: Lessee covenants that the premises shall be continuously used for the purposes set forth in Section 7a(5) during the term of the lease. Lease Agreement 99 -002 City of Renton to Pro - Flight Aviation, Inc. 2 • 7c. Use Restrictions: • LAG 99 -002 Addendum # 3 -09 7c(1). General: Lessee covenants that the premises shall not be used for any purposes other than those set forth in Section 7(a) without Lessor's written consent first having been obtained. Consent of Lessor to other types of activities will not be unreasonably withheld, conditioned, or delayed. 7c(2). Non - Aviation Uses Prohibited: Lessee agrees that the Premises may not be used for uses or activities that are not directly related to aviation and require daily access to the runway and /or taxiway by aircraft serviced by or directly operated by the Lessee. 7c(3). Lessee's Use of Premises: Lessee itself shall not use the premises, nor shall Lessee itself be required by Lessor to use the premises, for any of the uses set forth in Sections 7a(1), 7a(3), or 7a(4). Notwithstanding the foregoing, Lessee's assignees and /or sublessees may use the premises for any of the uses set forth in Section 7a. 4. The Parties further agree that Section 8(e) of the Lease shall be amended to read as follows: 8e. Lessor May Perform Maintenance: If Lessee fails to perform its obligations under this Section, Lessor may, at its option, but shall not be required to, enter the Premises, after thirty (30) days' prior written notice to Lessee, except in the event of an emergency when no notice shall be required, and put the same in good order, condition and repair, and the cost thereof together with interest thereon at the rate of twelve (12 %) percent per annum shall become due and payable as additional rental to Lessor together with Lessee's next rental installment. 5. The Parties further agree that Section 13a of the Lease shall be amended to read as follows: 13a. Assignment /Subletting: This lease or any part hereof shall not be assigned by Lessee, by operation of law or otherwise, nor shall the premises or any part thereof be sublet without the prior written consent of Lessor, which consent shall not be unreasonably withheld, conditioned, or delayed, subject to Lessor's receipt of commercially reasonable evidence that the proposed assignee or subtenant is in a financial condition to undertake the obligations of this lease, pursuant to the provisions of the Airport Leasing Policies, and, in the event of assignment, Lessor's receipt of an affidavit from the proposed assignee stating that it has examined this lease and agrees to assume and be bound by all of Lesssee's obligations under this lease, to the same extent as if it were the original Lessee. If Lessee is a corporation, the transfer of a majority of Lessee's stock shall constitute an assignment for purposes of this paragraph. Lease Agreement 99 -002 City of Renton to Pro - Flight Aviation, Inc. 3 LAG 99 -002 Addendum # 3 -09 6. The parties further agree that except as modified by this Third Addendum, the Lease shall remain in full force and effect, and that in the event of any conflict between the terms of this Third Addendum and the terms of the Lease, the terms of this Third Addendum shall control. 7. Authorization. Each of the Parties and their representatives executing this Third Addendum represent and warrant that they are authorized to execute this Third Addendum on behalf of the respective entities. 8. Effective Date. This Third Addendum shall be effective as of the date of execution below by the City of Renton. The amendments set forth in this Third Addendum shall take effect 60 days after Renton Gateway Center's receipt of a certificate of occupancy for the Facility. In the event that Renton Gateway Center does not receive a certificate of occupancy for the Facility, the amendments set forth in this Third Addendum shall be rendered invalid. 9. Counterparts. This Third Addendum may be executed by counterparts, each of which shall be deemed an original but both of which shall constitute one and the same agreement. 10. Governing Law. This Third Addendum shall be construed in accordance with the laws of the State of Washington. 11. All other terms and conditions of the original Lease Agreement shall remain in full force and effect. PRO - FLIGHT AVIATION, INC. a Washington Corporation pre,16�d�� Title Lease Agreement 99 -002 City of Renton to Pro- Flight Aviation, Inc. CITY OF RENTON a MuWcipal Corporation Denis Law Mayor Bonnie Walton City Clerk D� *7 aoo9 Date App ed as to legal form City Attorney