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LAG 006-84
Addendum# 12-06
ADDENDUM TO LEASE AGREEMENT
(City of Renton to Southcove Ventures,LLC,dba Aerodyne LLC)
THIS ADDENDUM to Lease Agreement 006-84 is effective as of the date of execution
by the City of Renton,as indicated on the last page of this addendum.
RECITALS:
WHEREAS, on September 1, 1984,Plane Space Investments, Inc. entered into Lease
Agreement LAG 006-84, and leased four contiguous parcels at the south end of the Airport,
consisting of three unimproved parcels of 39,030 square feet,referred to as the Vehicle Parking
Lot, East Tiedown Area and West Tiedown Area, and one improved parcel of 42,936 square feet
consisting of an existing hangar building,and
WHEREAS,on September 2, 1994,Plane Space Investments assigned Lease LAG 006-
84, in its entirety,to Puget Sound Industries,Inc.,and
WHEREAS, on March 25, 1997, Puget Sound Industries assigned Lease LAG 006-84, in
its entirety, to Cliff Howard and Fred Bahr, and
WHEREAS, on April 29, 1999, Cliff Howard and Fred Bahr assigned Lease LAG 006-84,
in its entirety, to Southcove Ventures, LLC, and
WHEREAS, during September 2002,the land rental rate for the approximately 39,030
square feet of unimproved land area leased by Southcove Ventures, LLC was determined to be
$0.1641 per square foot per year and continuing until August 31, 2005; and
WHEREAS, on September 1,2005, and for the ensuing three(3)year period, the land
• rental rate was adjusted,using the Consumer Price Index-Urban, to a rate of$0.17 per square
foot per year for the 39,030 square feet of leased area,resulting in an annual rental amount of
$6,635.10(39,030_x$0.17=$6,635.10), and continuing until August 31, 2008, and
WHEREAS, during September 2002,the land rental rate for the approximately 42,936
square feet of improved land area leased by Southcove Ventures, LLC was determined to be
$0.3282 per square foot per year and continuing until August 31, 2005; and
WHEREAS, on September 1,2005, and for the ensuing three(3)year period, the land
rental rate was adjusted,using the Consumer Price Index-Urban, to a rate of$0.35 per square
foot per year for the 42,936 square feet of leased area,resulting in an annual rental amount of
$15,027.60(42,936 x$0.35 = $15,027.60),and continuing until August 31, 2008, and
ORIGINAL
Now
LAG 006-84
Addendum# 12-06
WHEREAS, on October 28, 2005, Southcove Ventures,LLC agreed to increase its
unimproved leased area by 4,555 square feet for a total unimproved leased area of 43,585 square
feet, and
WHEREAS,the initial lease term of twenty two (22)years ends on August 31, 2006, and
WHEREAS, Section 23 of LAG 006-84 and Section 2.2 of PAG-97-03, which amends
LAG 006-84,provide for a ten(10)year lease extension, such that the date of termination would
be August 31, 2016, and
WHEREAS, Section 2 of PAG-97-03,Addendum#02-97 which amends LAG 006-84
provides for an additional ten(10) year lease extension,such that the date of termination would
be August 31, 2026, and
WHEREAS, Section 23 of LAG 006-84 and Section 2.2 of PAG-97-03,which amends
LAG 006-84,stipulate that lease extension is available to be exercised by the Lessee if the
Lessee"has fully and faithfully complied with all of the terms and conditions of the lease
agreement and gives written notice of the exercise of such option at least ninety(90) days prior
to the end of the original term of the lease",and
WHEREAS, On March 2, 2006, Southcove Ventures LLC provided written notification to
the City of its intent to exercise its option to extend LAG 006-84 for another ten(10)years, and
WHEREAS, Southcove Ventures LLC, is a Lessee in good standing with the Lessor, and
WHEREAS, during May 2004, Southcove Ventures, LLC notified the City of Renton of
their desire to assign the lease from Southcove Venture LLC to Aerodyne LLC, and
WHEREAS,the legal name of Aerodyne, LLC is on file with the Secretary of State as of
May 25, 2004.
NOW,THEREFORE,IT IS HEREBY AGREED AND COVENANTED BY AND
BETWEEN THE CITY OF RENTON AND SOUTHCOVE VENTURES,LLC,AS
FOLLOWS:
WITNESSETH:
1. Lessor and Lessee agree that the difference between the CPI-U of April 2002 to June 16,
2005,is 6.6%(201.3 — 188.8/ 188.8 =0.0662 or 6.6%). This results in an annual rate
increase from$0.1641 to $0.17 per square foot(0.1641 x 1.066 = $0.17) for the 43,585
square feet of unimproved area,and an annual rate increase from $0.3282 to $0.35 per
square foot(0.3282 x 1.066=$0.35) for the 42,936 square feet of improved area,and
2. The Lessor and Lessee do hereby agree to an annual land rent of$7,409.45 (43,585 x
0.17=7,409.45)for the 43,585 square feet of unimproved land identified in Lease
Lease Agreement 006-84 2
City of Renton to
Southcove Ventures,dba Aerodyne LLC
*ow ,rise
LAG 006-84
Addendum# 12-06
Agreement LAG 003-84, and an annual land rent of$15,027.60 (42,936 x 0.35 =
15,027.60)for the 42,936 square feet of improved land identified in Lease Agreement
LAG 003-84, and
3. Lessor and Lessee do hereby agree that the annual land rent rate in Paragraph 1 shall
remain in effect until August 31,2008, and effective as of that date the rental rate shall
automatically be readjusted by and between the parties using the increase of the
Consumer Price Index,and for each three(3)year period thereafter. Minimum base
rental for any extended period shall not be less than the current annual rental of
$7,409.45 for unimproved ground area and$15,027.60 for improved ground area.
4. Lessor and Lessee do hereby further agree that the Consumer Price Index information to
be used for rental adjustments shall be the Consumer Price Index-Urban (CPI-U)then in
effect for all urban consumers, as published by the US Department of Labor for the
Seattle-Tacoma Metropolitan Area.
5. Lessor and Lessee do hereby further agree that at least thirty(30) days prior to the Rental
Adjustment Date either party shall, if they desire to adjust the base land rental rate for the
ensuing three(3)year period by a means other than the Consumer Price Index-Urban,
provide to the other party a written request for readjustment of the rental rate pursuant to
RCW 14.08.120(5).
6. Lessor and Lessee do hereby agree that LAG 006-84 is extended for an additional ten
(10)years beginning on September 1, 2006 and ending on August 31, 2016; and
7. Lessor and Lessee do hereby agree that LAG 006-84 and associated addenda has been
assigned to Aerodyne LLC,and
8. All other terms and conditions of the original Lease Agreement and Addenda shall
remain in full force and effect.
Lease Agreement 006-84 3
City of Renton to
Southcove Ventures,dba Aerodyne LLC
INse
LAG 006-81
Addendum# 12-06
SOUTHCOVE VENTURES LLC CITY OF RENTON
dba AERODYNE LLC a Municipal Corporation
a Washington Corporation
17/ VeArek&—
Mayor K: a y Keolker
Attest:
,e't$, c')4 /dai
Title Bonnie Walton, City Clerk
C-3o-07006
Date
Approved as to legal form
City Attorney
Lease Agreement 006-84 4
City of Renton to
Southcove Ventures,dba Aerodyne LLC
ORIGINAL