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HomeMy WebLinkAboutAdden 2 LAG 09-006 Amendment 2-15 AMENDMENT TO LEASE AGREEMENT (City of Renton to Renton Gateway Center LLC) THIS AMENDMENT to Lease Agreement LAG 09-006 is effective as of August 21, 2014. RECITALS: WHEREAS, Renton Gateway Center LLC has a Lease Agreement with the City of Renton, LAG 09-006, executed on October 7, 2009; and WHEREAS, on August 21, 2011, the land rental rate for the approximately 136,846 square feet of land area leased by Renton Gateway Center LLC was determined to be $0.57 per square foot per year and continuing until August 21, 2014; and WHEREAS, pursuant to LAG 09-006, in a letter dated April 4, 2014, Tenant was notified by certified letter that the lease rate would be readjusted using a means other than the Consumer Price Index-Urban, to be effective August 21, 2014; and WHEREAS, effective August 21, 2014, Landlord had adjusted the land lease rate to $0.75 per square foot per year, and Tenant had paid said rental rate, pursuant to LAG 09-006; a n d WHEREAS, in July 2014, the Tenant notified the Landlord of its intent to initiate the lease arbitration process, as provided for in lease LAG 09-006; and WHEREAS, on January 8, 2015, through the lease arbitration process, a new land rental rate was established at $0.7252 per square foot per year; and WHEREAS, on August 21, 2014, and for the ensuing three (3) year period, the land rental rate should be adjusted, using the lease arbitration process, to a rate of $0.7252 per square foot per year for the 136,846 square feet of leased area, resulting in an annual rental amount of$99,240.72 (136,846 x$0.7252), and continuing until August 21, 2017. WHEREAS, the annual difference between 136,846 sq.ft. x $0.75 and 136,846 sq.ft. x$0.7252 is $3,393.78 ($102,634.50 - $99,240.72). The monthly amount of the differential is $282.82 ($3,393.78/ 12). The refund amount is One Thousand Five Hundred Seven dollars and Forty Three cents ($1,507.43) (5.33 months x $282.82), for the period beginning August 21, 2014 to January 31, 2015. The refund was deducted from the land amount in February 2015. Lease Agreement LAG 09-006 1 City of Renton to Renton Gateway Center LLC ORIGINAL R ! GINAL LAG 09-006 Amendment 2-15 NOW,THEREFORE, IT IS HEREBY AGREED AND COVENANTED BY AND BETWEEN THE CITY OF RENTON AND RENTON GATEWAY CENTER LLC AS FOLLOWS: WITNESSETH: 1. The Landlord and Tenant do hereby agree to amend section 4.a. of LAG 09-006 to provide an annual land rent of$99,240.72 (136,846 x $0.7252), for the 136,846 square feet identified in lease LAG 09-006 through August 21, 2017. 2. Landlord has deducted the amount of$1,507.43 from Tenant's invoice for February 2015 to reimburse Tenant for the overpaid rent for the period August 21, 2014 to January 31, 2015. 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. Renton Gateway Center LLC CITY OF RENTON a Washington Limited Liability Company a Municipal Corporation - 1'(2-x.t. 6. igli-de_ III , ,...„,„,..._m., D•nis Law M. ,or /��'.- "h'�" I t / Al 14 Title "G\" ' (beth r r C erk r' D.t �� 5 Abetar 6,1 �i /�%QOM/kielnli1111111111r 1� Approv s to legal form it4.0.0414.4.4e74)4.4-1Q,04.,..„ Lease Agreement LAG 09-006 2 City of Renton to Renton Gateway Center LLC LAG 09-006 Amendment 2-15 City Attorney Lease Agreement LAG 09-006 3 City of Renton to Renton Gateway Center LLC