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HomeMy WebLinkAboutAdden 7 LAG 99-002 Amendment 7-18 ADDENDUM TO LEASE AGREEMENT (City of Renton to 540 Renton Hangar LLC) THIS ADDENDUM to Lease Agreement LAG 99-002 is effective as of the date last signed below by the parties. RECITALS: WHEREAS, under LAG 99-002, effective May 6, 1999, together with its amendments (the "Lease"), the City of Renton (Lessor) had leased to the 540 Renton Hangar LLC (Lessee) certain land on the Renton Municipal Airport, Renton, Washington, until July 31, 2018; and WHEREAS, the initial term of the Lease terminates on July 31, 2018; and WHEREAS, Section 2b of the Lease's Addendum 3-09 grants Lessee an option to renew or extend the Lease for a further five (5) year term commencing on the expiration of the initial term and terminating on July 31, 2023; provided that Lessee had fully and faithfully compiled with the Lease's terms and conditions and further provided that Lessee had met one of the three conditions specified in Section 2b of the Lease's Addendum 3-09; and WHEREAS, Lessee notified Landlord of Lessee's desire to renew or extend the Lease for a further five (5) year term; and WHEREAS, by the City of Renton's Consent to Deed, Bill of Sale and Assignment, dated December 21, 2010, attached hereto as Exhibit A to Addendum 7-18 and incorporated by reference, the City agreed that Lessee had the right to exercise the lease extension option; and WHEREAS, the parties agree that the rental rate established in Addendum 6-16, effective August 1, 2016, should continue to July 31, 2019. 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 TO AMEND THE LEASE AND LEASE ADDENDA AS SET FORTH BELOW: WITNESSETH: Lease Agreement LAG 99-002 1 City of Renton to 540 Renton Hangar LLC LAG 99-002 Amendment 7-18 1. The Lease (LAG 99-002) is hereby renewed and extended for five (5)years, commencing on August 1, 2018 and terminating on July 31, 2023. 2. Effective on the date of this addendum,Section 3c. of LAG 99-002, is hereby amended to read as follows: 3c. Periodic Rental Adjustment: Landlord and Tenant do hereby agree that the Tenant shall pay to Landlord a Minimum Monthly Rent in the sum of two thousand, one hundred fifty one dollars and twelve cents ($2,151.13), which amount is one- twelfth of the Total Annual Rent, PLUS leasehold excise tax as described in Section 4 of lease LAG 99-002, without deduction, offset, prior notice or demand, payable promptly in advance on the first day of each and every month. This Minimum Monthly Rate shall remain in effect until July 31, 2019, and effective as of that date the rental rate shall automatically be readjusted by and between the parties as specified in paragraph 3b, utilizing the increase of the Consumer Price Index, for each three (3) year period thereafter. Minimum base rental for any extended period shall not be less than the current Total Annual Rent of$25,813.49. All payments shall be made to the City of Renton, Renton Municipal Airport, 616 West Perimeter Road-Unit A, Renton, Washington 98057. 3. All other terms and conditions of the original Lease Agreement and Addenda thereto, insofar as they are not inconsistent herewith, shall remain in full force and effect. 540 Renton Hangar LLC CITY OF RENTON a Washington Limited Liability Company a Municipal Corporation TVs vc•^y, ,4 Denis Law Mayor Title 5-4.{z �^►vty,so�..vr ;w�. Jaso Seth ity Clerk Date Lease Agreement LAG 99-002 2 City of Renton to 540 Renton Hangar LLC LAG 99-002 Amendment 7-18 Approved as to legal form Shane Moloney City Attorney 0%SittilltU111 * = SEAL 6� "4`ED tSe ``\�‘`‘. Lease Agreement LAG 99-002 3 City of Renton to 540 Renton Hangar LLC EXHIBIT A TO ADDENDUM 7-18 CITY OF RENTON'S CONSENT TO DEED, BILL OF SALE A.ND ASSFGNM ENT in consideration for the Assignee's(540 Renton Hangar 1.10 acceptance of and promise to perform all obligations in 1. -ise (LAG 99-002) and all addenda thereto, the City of Renton hereby COUtieTILS to the attached deed, hill of sale, and assigiment of ground lease upon the conditions contained therein, including the right of 540 Renton Ftaigr LLC to sublease to Pro- Flight Aviation, Inc., for purposes' t,.)omiEttlit with the operating ago:meal as shall be entered into between or among the City of Realm) arid 540 Renton Hangar LLC andior Pnflih Aviation. Inc., consistent with the terms and eonditions of that ()mating agreement entitled Operating Permit and Agreement PAC berwecn the City of Renton and Proflight Aviation, Inc., dated the day of As provided in Addmium N3-09 dated October 7, 2009, the City of Renton hereby confirms that, despite the good faith efforts of Pro-Flight Aviation, Inc. to sell or lease the privately owned hangAr building located at 540 W. Perimeter Road to a third party engaged in curnmercial aeronautical service* to the public as defined in the Airport Regulations and Minimum Standards. such a third party could not be located. Acoordingly, 540 Renton Hangar LLC shall have the right 10 exercise each of the 5-year extensions granted to ProFlight Aviation, Inc, under the ground lease,and 540 Renton Hangar LLC shall not be subjact to the provisions of Sections 3j and 744) of the ground lease agreement, LAG 99-002, as amended, regarding the obligation to maintain a Liminess office-, provided, however, that 540 Renton Hangar Lie and Pro-Flight Aviation, Ine. shall be subject to the reversion of all buildings and appurtenances thereto to the City of Renton at the end of the term of Lease 99-002 and any extensions thereto, except Pro-Flight Aviation, Inc. shall retain ownersh_ ip of the above ground fuel lank(s) described in Addendum NI-04 dated November 12., 2004, the first addendum to Lease (LA 99- 002),and an plumbing,electrical a$Nociated with the fuel tanks. °The City of Renton does not consent to having,any encumbranoe on the buildings that ir /cleated on the leasehold premises extend beyond July 31,2028. Dated: 2-11?-4- rt-) CM'OF RENTON,A WASHINGTON MUNICIPAL CORPORATION t'ER1 I FOC ATE Aatti I,the undersigned City Clerk of the By: City or Renton,Washingtoci,certify Printed Name: e 1,0410-1 that this.is a true and oorrect cop y of Mayor Denis t,av egigi b :kJ. 4 ii44 SUbscribed and sealed this! day of3,4c. 2919_ AtteAti City Clerk -40,44#4.4, edvaedyt.2 Bonnie I. Walton, City Clprk ��, Maps 540 W Perimeter Rd Exhibit C: Map View of 540 Renton Hangar go-, ; •�, r' l yy ' ''11'.—, 4. ' :;?*:—*7.J. '.7 :;;;;1'.:°,r''''' -'•1'• 1°:.;:ii:rs,°::: ': :''-1,,,,,,t 1 , ,.,,,,, ,, i7,,.,,,, ..,_,..:,,,,,,,. „,,,.,,,,,, •,,,ryr:,,,,,,,,r,,, ,,, , .....1. ! s s '•'. a a 3 a a ,,, • ID .,^y �" Ns a!r,t • 3 3 a• s t"a it act', y ' ` "• , •� ,'iGoogie ��• .y ,� • '" Imagery©2018 Google,Map dat-©2018 Google 200 ft< ,_�,..—„,,.� ,,. : Pr (c', 540 W Perimeter Rd This is the location of subject Hangar on Renton,WA 98057 Renton Airport • •a • FQQM+W4 Renton,Washington •