HomeMy WebLinkAboutAdden 04 &G-10-001 , Adden #4-13
AMENDMENT NO. 4 TO LEASE AGREEMENT LAG-10-001
(City of Renton to The Boeing Company)
THIS AMENDMENT No. 4 to Lease Agreement LAG-10-001 ("Amendment No. 4") is entered into
as of-`I , 2013 by the City of Renton, a Municipal Corporation (Landlord) and The Boeing
Company, a Delaware corporation (Tenant) and amends that certain lease agreement LAG-10
001 dated June 1, 2010 as amended to the date hereof(the "Lease").
RECITALS:
1. WHEREAS, the Tenant desires to lease two available parcels on Apron C commonly known
as the "760 Parcel" and the "770 Parcel" as shown on Exhibit J and Exhibit K for purposes
of supporting its operations related to 737 production; and
2. WHEREAS, the 760 Parcel contains two (2) buildings on the Parcel which are known as the
756 Building and the 760 Building and Tenant will be leasing these buildings as well; and
3. WHEREAS, the Parties hereto agree that the 760 Parcel consists of 56,923 square feet,
and the 770 Parcel consists of 86,848 square feet; and.
4. WHEREAS, the Landlord has seventeen (17)tie down tenants on the 760 parcel, twelve
(12)tie down tenants on the 770 Parcel renting at a rate of$106.35/mo./tie down plus
Leasehold Excise Tax, and rents 12,000 square feet at$0.64/sq. ft./yr. plus Leasehold
Excise Tax to Rainier'Flight Services on the 770 Parcel (hereinafter"Current Tenants"), and 1
5. WHEREAS,the current rental income from the current tenants to the Landlord is
approximately$7,680 per year from Rainier Flight Services and $37,009 per year from tie
down rental from the 760 and 770 Parcels, or$44,689 per year(the "Current Tenant Rental
Income"), and
6. WHEREAS, the Landlord desires to maintain the existing number of aircraft tie downs on the
760 Parcel and the 770 Parcel so as to minimize disruptions to the existing number of
aircraft based at the airport and the Tenant.desires to minimize their costs of leasing airport
property until it is supporting operations related to 737 production, and
7. WHEREAS,the Tenant has requested that the Landlord clean and remove all sediment from the
three (3)storm water catch basins serving the 760 and 770 Parcels within 30 days of the signing of
this Amendment No.4, and to provide Tenant with documentation establishing that the work has
been completed.
ORIGINAL.
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AMENDMENT NO. 4
Page 2 of 12
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, LANDLORD AND TENANT AGREE TO AMEND THE LEASE AS
SET FORTH BELOW:
WITNESSETH:
Landlord and Tenant agree to amend the Lease, in the following respects:
A. Section 1.a. of the Lease is deleted in its entirety and replaced with the following:
1. GRANT OF LEASE:
1.a. Legal Description and Reservation of Easement: Landlord hereby leases to
Tenant, and Tenant leases from Landlord for the Term described in Section 3 below, the
parcels of land and, where applicable,the buildings and other improvements associated
therewith, shown on the following Exhibits with the Lease Maps and Legal Descriptions and
Boeing Building Numbers:
Exhibit "A"— Lease Parcel 5-08/5-09, as Amended by Amendment No. 1
Exhibit "B"—Lease Parcel 5-50 and 5-50 Building
Exhibit "C"—Lease Parcel Aircraft Positions A-4 through A-9 & Compass Rose
Exhibit "D."—Lease Parcel North Bridge Access
Revised Exhibit "E"—Amended Apron B
Exhibit "F"— Boeing Substation B-1
Exhibit "G"— Lease Parcel Fuel Farm/Building 5-45
Exhibit "I"— Utility Installations Easement Agreement
Exhibit "J"— Lease Parcel 760
Exhibit "K" - Lease Parcel 770
B. A new paragraph 1.b. is added to Section 1 of the Lease and Sections 1.b. and 1.b.1 are
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AMENDMENT NO.4
Page 3 of 12
renumbered Sections 1.c. and 1.c.1 as follows:
1.b. Landlord's Right to Continue Leasing the 760 & 770 Parcels: Landlord shall
continue leasing the 760 Parcel and the 770 Parcel to the Current Tenants (who shall be treated
as tenants of Landlord and not subtenants of Tenant for purposes of the Lease, and who shall
pay their rents directly to Landlord) until the earlier of(a) March 31, 2015; or (b) such time as
Tenant provides written notice to Landlord that Tenant requires use of said parcels, which
notice shall be provided to Landlord no later than 120 days prior to the date of Tenant's
required use (the "Current Tenant Lease Period"). Tenant shall, at Tenant's cost, have the right
to conduct an environmental assessment of the Apron C Parcels after the Current Tenants have
been relocated to establish the environmental condition of the 760 and 770 Parcels prior to
Tenant's occupancy. At the end of the Current Tenant Lease Period, Landlord shall ensure that
the Current Tenants are no longer in possession of the 760 Parcel and 770 Parcel.
1.c. Common Areas: Tenant, and its authorized representatives, subtenants,
assignees, agents, invitees, and licensees, shall have the right to use, in common with others,
on a non-exclusive basis and subject to the Airport Regulations and Minimum Standards (as
they may be amended from time to time) pursuant to Section 8(e),the public portion of the
Renton Municipal Airport (Aka Clayton Scott Field. Hereinafter referred to as "Airport"),
including the runway and other public facilities provided thereon.
1.c.1 Notwithstanding anything in this Lease to the contrary, Landlord acknowledges
that direct access to the taxiways and runway from the Premises is essential to the conduct of
Tenant's business on the Premises and, except, during construction activities occurring on the
taxiways, runway or weather related events, Landlord shall ensure that Tenant and its
representatives, subtenants, assignees, agents, invitees, and licensees have direct access to the
taxiways and runway at all times during the Term (and the parties hereby agree that the
Through the Fence Access Agreement set out in Attachment A, which is attached to this Lease
and by this reference made a part of this Lease, contains the agreement of Landlord and Tenant
with respect to such access by.Tenant), PROVIDED that if Landlord plans any construction.
activity on the taxiways or runway, Landlord will schedule such activity so as not to interfere
with Tenant's use of the Premises,the taxiways, or the runway, will notify Tenant of any plans
for such activity not less than six months in advance of the commencement of such activity, and
will consult and coordinate with Tenant to ensure that such activity does not interfere with
Tenant's use of the Premises, the taxiways, or runway, except that in the case of an emergency
Landlord may proceed with such activity without notice to the Lessee and will use its best
reasonable efforts not to interfere with Tenant's use of the Premises, taxiway, or runway in
addressing such emergency. For purposes of this provision, an "emergency" is a condition that
presents an imminent threat of bodily injury to or death of any person or loss of or significant
LAG-10-001
AMENDMENT NO.4
Page 4 of 12
damage to any property.
C. The following new paragraphs are added to Section 3 of the Lease:
3.c. Term for the 760 and 770 Parcels: The initial term for the 760 and 770 Parcels
shall be for a five (5) year period commencing on August 15, 2013 and terminating on August
14, 2018 ("the Term for the Apron C Parcels").
3.c.1. Option to Extend Term for Apron C Parcels: Tenant shall have the right to extend
the term of this Amendment#4 for the lease of the 760 and 770 Parcels as provided herein. In
the event that the Tenant is not in default under the Lease beyond any applicable notice and
cure period at the time Tenant exercises its right to extend the Term for the 760 and 770
Parcels, ,then Tenant may extend the Term for the 760 and 770 Parcels for two (2) consecutive
periods of one (1)year each by delivering written notice to Landlord pursuant to Section 23 of
the lease at least thirty (120) days prior to the expiration of the Term for the 760 and 770
Parcels, as may be extended. In no event will the lease of the 760 and 770 Parcels extend
beyond the date of August 14, 2020, unless the Parties otherwise agree in writing.
D. Section 4.a. of the Lease is deleted in its entirety and replaced with the following:
4. RENT AND FEES:
4.a. Minimum Monthly Rent: Tenant shall pay to Landlord a Minimum Monthly Rent in
the sum of One Hundred Three Thousand One Hundred Twenty dollars and sixteen cents
($103,120.16), which amount is one-twelfth of the Total Annual Rent shown in the chart below,
PLUS Leasehold Excise Tax as described in Section 5 of the Lease without deduction, offset,
prior notice or demand, payable promptly in advance on the first day of each and every month
during the Term. All such payments shall be made to the City of Renton, Airport
Administration Office, Renton Municipal Airport, 616 West Perimeter Road, Unit A, Renton,
Washington 98057. The Minimum Monthly Rent is computed as follows:
Exhibit Lease Parcel/Building Leased 201 Rates Annual Rent
Description area (sq ft)
Exhibit A 5-08/5-09 Building and $379,179.54 $379,179.54
Land and Aircraft
Position A-1
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AMENDMENT NO.4
Page f12
a e 5 o
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Exhibit B 5-50 Building (See note $163,276.80 $163,276.80
below)
Exhibit B Land and Aircraft 132,896 $0.66/sq $87,711.36
Positions A-2 &A-3 ft/yr
(including land under 5-
50 Building)
Exhibit C Aircraft Position A-4 467,809 $0.66/sq $308,753.94
through A-9 and ft/yr
Compass Rose
Exhibit D North Bridge Access 16,778 $0.66/sq $11,073.48
ft/yr
Revised Amended Apron B 174,073 $0.66/sq $114,888.18
Exhibit E ft/yr
Exhibit F Boeing Substation B-1 453 $0.66/sq $298.98
ft/yr
Exhibit G 5-45 Building (building $20,100 $21,366.30
only)
Exhibit G 5-4.5 Land (land only) 57,130 $0.66/sq $37,705.80
ft/yr
Exhibit I Utility Installations 22,147.74 33%of $4,872.50
Easement Agreement $0.66/sq
ft/yr
Exhibit J 760 Parcel 56,923 $0.66/sq $37,569.18
ft/yr
Exhibit J 756 Building $2,965.68 $2,965.68
760 Building $10,710.00 $10,710.00
Exhibit K 770 Parcel 86,848 $0.66/sq $57,319.68
- ft/yr
Total Annual Rent= $1,237,441.92 plus Leasehold Excise Tax
Note relating to Exhibit B: The Parties acknowledge that in 2009 and 2010, the
Tenant made a substantial capital investment in improvements to the 5-50 Building,
including numerous alterations to the structure as well as improvements within the
building. Tenant's financial investment as well as these improvements and Tenant's use
of the building as a paint hangar have made this a unique building. Pursuant to
provisions in the prior lease, Renton will assume ownership of this building on June 1,
2010. So, while Landlord will charge Tenant rent for its use,the Parties have agreed to
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AMENDMENT N0. 4
Page 6 of 12
treat this building differently from other buildings in certain provisions of this Lease.
The rental rate for the 5-50 Building shall adjust according to the terms set out in this
Paragraph 4, EXCEPT that in those years when the Minimum Monthly Rent is adjusted to
the "then current market rent", pursuant to Paragraph 4.b.2 of the Lease,the parties
agree that the appraisal (or other form of analysis to determine fair market rental)
relating to the 5-50 Building shall evaluate the building as an aircraft hangar, and as if
the improvements made by Tenant in 2009-2010, and described in Paragraph 4.d of the
Lease, had not been made. However, the Parties agree that the condition of the
building, as it is maintained by Boeing, shall be considered in the appraisal (or other
form of analysis)to determine the fair market rental.
4.a.1. Rental Offset for the Apron C Parcels: Beginning on the commencement of the
Term for the Apron C Parcels and ending on March 31, 2015, or when Tenant takes
possession of the 760 and 770 Parcels, whichever is earlier, Landlord shall apply a credit of
Three Thousand Seven Hundred Twenty Four dollars and zero cents ($3,724.00)"per month,
which amount is one-twelfth of the Current Tenant Rental Income,toward the Minimum
Monthly Rent paid by the Tenant under the Lease, as amended herein.
E. Section 10.a. of the Lease shall be amended to add a sentence at the end of the third
paragraph. Section 10.a of the Lease shall be amended to read as follows:
10. MAINTENANCE:
10.a. Maintenance of Premises: The Premises and all of the improvements or structures
thereon shall be used and maintained by Tenant in a neat, orderly, and sanitary manner. .
Landlord shall not be called upon to make any improvements, alteration, or repair of any
kind upon the Premises. Tenant is responsible for the clean-up and proper disposal at
reasonable and regular intervals of rubbish,trash, waste and leaves upon the Premises,
including that blown against fences bordering the Premises.
Tenant shall maintain in good condition and repair the Premises, subject to ordinary wear
and tear, including without limitation, the interior and exterior walls, floors, roof, and
ceilings, and any structural portions of the Premises (but excluding the structural portions of
buildings that are on the Premises as of the Commencement Date, which are Landlord's
responsibility as set out below), the exterior and interior portions of all doors, windows,
glass, utility facilities, plumbing and sewage facilities within the building or under the floor
slab including free flow up to the main sewer line, parking areas, landscaping, fixtures,
heating, ventilating and air conditioning, including exterior mechanical equipment, exterior
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AMENDMENT N0. 4
Page 7 of 12
utility facilities, and exterior electrical equipment serving the Premises. Tenant shall make
all repairs, replacements and renewals, whether ordinary or extraordinary, anticipated or
unforeseen,that are necessary to maintain the Premises in the condition required by this
Section. Tenant shall not be responsible for the structural portions of Landlord owned
Buildings.
Notwithstanding the foregoing, Landlord shall be responsible for the following: (a) the
structural integrity of any Landlord-owned buildings (that is,those buildings that are on the
Premises as of the Commencement Date); (b)the integrity and utility of all water supply
lines, sanitary sewer lines, and storm water drainage lines without the Premises that serve
those buildings that are on the Premises as of the Commencement Date; (c) for the
replacement as required of any and all HVAC systems serving any Landlord owned buildings
that are on the Premises as of the Commencement Date.(provided that Tenant is
responsible for the annual maintenance and repair for such HVAC systems); and (d)
cleaning and removing all sediment from the three (3) storm water catch basins serving the
760 and 770 Parcels one (1)time no earlier than 30 days and no later than 60 days after the
expiration of the Current Tenant Lease Period, and providing Tenant with documentation
establishing that the work has been completed.
The Parties agree that notwithstanding anything to the contrary in this Lease,Tenant
shall be solely responsible for all maintenance relating to the 5-50 Building (Paint Hangar)
and all improvements thereto through the Term of this Lease. The Parties acknowledge
that as of the date of this Lease, there is asbestos impregnated into the siding material on
the 5-50 Building (Paint Hangar). If, for any reason, the skin of the 5-50 Building (Paint
Hangar) needs to be replaced during the Term of this Lease, the cost of removal and
replacement shall be borne by Tenant.
F. Miscellaneous. This Amendment No. 4 will be effective immediately upon execution and
delivery by the parties. This Amendment No. 4 may be executed in multiple counterparts,
each of which shall be deemed an original, but all of which,together, shall constitute but
one and the same instrument. This Amendment No. 4 shall be governed by the law of the
State of-Washington, without reference to its choice of law rules. This Amendment No. 4-
supersedes any prior agreements, negotiations and communications, oral or written, with
respect to the addition of the 760 Parcel and the 770 Parcel to the Premises under the
Lease and contains the entire agreement between, and the final expression of, the Landlord
and Tenant with respect to the addition of the 760 Parcel and the 770 Parcel to the
Premises. No subsequent agreement, representation, or promise made by either party
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AMENDMENT NO. 4
Page 8 of 12
hereto, or by or to an employee, officer, agent or representative of either party hereto shall
be of any effect unless it is in writing and executed by the party;to be bound thereby. As
amended by this Amendment No. 4, the Lease continues in full force and effect in
accordance with its terms. On and after the date of this Amendment No. 4, the Lease shall
be deemed amended by this Amendment No. 4 and all references in the Lease to "this
Agreement" "this Lease"."herein" "hereof" and the like shall be deemed to be references to
the Lease as amended by this Amendment No. 4.
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• LAG-10-001
AMENDMENT NO.4
Page 9 of 12
Executed by Landlord and Tenant as of the date first written above.
The Boeing Company CITY OF RENTON
a Delaware Corporation a nicipal Corporation
-13
Sb9�� M E nW Denis Law
AWWI=d Sfutcxy Mayor ,
Title Bonnie Walton
City Clerk
'g01,3
Date
Approved as to legal form
City Attorney
V
ACKNOWLEDGEMENT
STATE OF WASHINGTON )
COUNTY OF KING )
r.
On this "c day of 2013, before me,the undersigned notary
public in and for the State of Washington, d commissioned and sworn, personally appeared
S_ e— to me known to be the
uJ c5h of THIOROFING COMPANY, a Delaware corporation, the party
that executed the f regoing i strument, and acknowledged said instrument to be the free and
voluntary act and deed of said party, for the uses and purposes therein mentioned, and on oath
stated that he/she was duly authorized to execute the same.
WITNESS my hand and official seal hereto the day and year in this Certific e first above
written.
Signature: '
Notary Punic
State of Notary Public in and for the State of Lashington
ARLENE C RWashington ICE i
My Appointment Expires Aug 15,2016- Notary(print name) Y► e-11 e— .�Ice
Residing at R(ZKjDV1_
My appointment expires: Ciuc,
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