HomeMy WebLinkAboutAdden 3 LAG-13-001,Adden#3-17
ADDENDUM "C" TO CARCO THEATRE LEASE
This Addendum C, dated April 4, 2017, is between the City of Renton ("City" or"Lessor"), and Puget
Sound Access, ("PSA" or"Lessee") and made with respect to the Carco Theatre Lease ("Lease"), dated
January 28, 2013 and designated as LAG 13-001.
WHEREAS,the purpose of the Lease was, in part,for PSA to manage and operate Carco Theatre,
providing the City and the community a valuable service;
WHEREAS,the parties previously amended the Lease by Addendum A, extending the lease term through
December 31, 2025;
WHEREAS, in 2016,the parties previously amended the Lease by Addendum B, assisting PSA with its
financial challenges to cover the costs of operating Carco Theatre and to pay for improvements to the
Theatre;
WHEREAS, PSA is in need of additional funding to continue to manage Carco Theatre and has agreed to
amend the terms of the Lease as consideration for such additional funding; and
WHEREAS,the City Is willing to provide additional funding to assure Carco Theatre remains open for
business with uninterrupted programing while the City contemplates how Carco Theatre will be
managed and operated in 2018 and beyond; and
NOW THEREFORE, in consideration for valuable benefits to each party,the City and PSA agree to amend
the Lease as follows:
1. Section 1.1 is amended to reflect a new lease termination date of December 31, 201�.
2. Section 1.6.1 is amended to read as follows:
This Lease shall terminate on December 31, 2017. Prior to termination of the Lease, PSA and
the City will meet and confer to discuss viable plans for the future long term operation and
management of Carco Theatre. If the parties reach agreement,this Lease may be extended or
replaced by a new lease.
3. Section 1.7 is amended to add a new Section 1.7.1 to read as follows:
PSA shall utilize Carco Theatre to continue providing public access channel services separately
contracted for with the City pursuant to Consultant Agreement CAG 16-149.
4. Section 1.9 is amended to reflect that the Cit will not char e PSA an base rent, excise tax, or
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revenue sharing for use of Carco Theatre in 2017. If this Lease is amended to extend beyond
' 2017,the parties will mutually negotiate terms for rent and other charges. Moreover, to enable
PSA to continue to provide the services required by Section 5.2,as amended herein,the City
agrees to make a one-time payment in the amount of$20,000 to PSA within 15 days of the date
this Addendum C is fully executed and additional payments of$10,000 on or before luly 31,
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201�and October 31, 2017. Each$10,000 payment is conditioned upon PSA not being in
default under this Lease and its demonstrated ability to continue performing under the Lease
without default of its obligations to the City or third parties. The City may withhold either or
both $10,000 payments if it reasonably determines that, even with such payments, PSA will be
unable to continue to operate as required by this Lease through the end of 2017. Generally, the
City expects that at the time of payment, PSA's contractual obligations (including accounts
payable and payroll)will be current, and the current and reasonably projected revenues equal
or exceed current and projected expenditures. PSA will provide the City with all requested
documentation as contemplated by Section 5.2.1.1.
5. Section 5.2 is amended to add a new Section 5.2.1.1 to read as follows:
PSA shall continue using its best efforts to operate Carco Theatre and its business in a financially
responsible and sustainable manner. This obligation includes, but is not limited to, (a)fulfilling
its existing contractual obligations, (b) actively marketing and making the Theatre available for
additional paying customers, and (c)timely paying its liabilities. To enable the City to enforce
this section, PSA shall, upon request by the City at any time, provide the City with all requested
documentation supporting PSA's efforts to comply with this section and sufficient financial
documentation to demonstrate its ability to continue providing services for the term of this
Lease without defaulting on its separate contracts and liabilities, including, but not limited to,
payment of its employees'wages. Such documentation may include, but is not limited to,
monthly reconciled bank statements and monthly financial statements showing actual
expenditures and revenue.
LESSOR:Cit of Renton LESSEE: Puget Sound Access
By:
Denis Law, Mayor .
By:
� / Jeffery D. McCord, Executive Director
Date: v , 2017 Date: , 2017
Attest:
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Approved as to form:
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By:
Shane Moloney, City Attorney
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