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HomeMy WebLinkAboutAdden 3 � € lAG 09-006 � Amendment 3-17 E � E � AMENDMENT TO LEASE AGREEMENT ` E (City of Renton to Renton Gateway Center LLC) THIS AMENDMENT to Lease Agreement LAG 09-006 is effective as of August 21, g 2017. F � � t RECITALS: . P WHEREAS, under lease LAG 09-006, effective October 7, 2009, as subsequently � amended, the City of Renton (Landlord) leased to Renton Gateway Center LLC (Tenant) certain land on the Renton Municipal Airport, Renton, Washington, until October 31, 2045; and WHEREAS, in Amendment 01-11 to the lease, the expiration date of the lease was mistakenly stated as August 31, 2046 rather than October 31, 2045; and WHEREAS, on August 21, 2014, through a lease arbitration process, a new land rental rate for the approximately 136,846 square feet of land area leased by Tenant was established at $0.7252 per square foot per year, and continuing until August 21, 2017; and WHEREAS, the land rental rate is subject to a three-year adjustment based on the Consumer Price Index-Urban (CPI-U) pursuant to Section 4.b of LAG 09-006; and WHEREAS, Landlord and Tenant agree that the difference between the CPI-U of April 2017, as compared to April 2014, is 6% (261.560/246.616 = 1.06), and this results in a ground lease rate increase from $0.7252 to $0.77 per square foot per year ($0.7252 X 1.06= $0.77); and WHEREAS, Landlord and Tenant agree that on August 21, 2017, and for the ensuing three (3)year period, the land rental rate should be adjusted to a rate of$0.77 per square foot per year for the 136,846 square feet of leased area, resulting in an annual rental amount of$105,371.42 (136,846 x$0.77), and a monthly rental rate of eight thousand seven hundred eighty dollars and ninety five cents ($8,780.95) (105,371.42/12=$8,780.95), and continuing until August 21, 2020. 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 AS SET FORTH BELOW: �R���NA Amendment to Lease Agreement LAG 09-006 � 1 City of Renton to Renton Gateway Center LLC i � LAG 09-006 � Amendment 3-17 � � t WITNESSETH: �, << 1. Landlord and Tenant agree that the lease's expiration date under operation of � Section 3.b of LAG 09-006 is October 31, 2045, rather than August 31, 2046 which f was mistakenly stated in Amendment 01-11. � � � 2. On the effective date of this amendment, Section 4.a. of LAG 09-006, is hereby � amended to read as follows: � � 4a. Minimum Monthlv Rent: Tenant shall pay to Landlord a Minimum Monthly + Rent in the sum of eight thousand seven hundred eighty dollars and ninety five ° cents ($8,780.95), which amount is one-twelfth of the Total Annual Rent, PLUS t leasehold excise tax as described in Section 5 of lease LAG 09-006, 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, 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. k Renton Gateway Center LLC CITY OF RENTON F a Washington Limited Liability a Municip�l Corporation i Company t (.% � � Denis Law Mayor � ���1��— , Title Ja n Seth City Clerk `\`\`i������R���i���� �//yy�� � AA� ``,�,��'.`��``````�H{���liq�,/'�O�ii''''. � �,= � ',y � ; Date = * : SEAL = * = : � '�!' � .. ; Approved as to��l form � y '�.,� \����o , ,�j/���� ,� '������i(������UN�ro�����`�� 6, �.�` � �����/A�Rq +E�,S�Q\`\\`�. Shane Moloney, City Attorney Amendment to Lease Agreement LAG 09-006 2 City of Renton to Renton Gateway Center LLC �