HomeMy WebLinkAboutAdden 2 • • LAG 03-002
Addendum#2-09
ADDENDUM TO BUILDING AND GROUND LEASE AGREEMENT
(City of Renton to AirO, Inc.)
THIS ADDENDUM to Lease Agreement LAG 03-002 is effective as of the date
of execution by the City of Renton, as indicated on the last page of this addendum.
RECITALS:
WHEREAS, AirO, Inc. has a Lease Agreement with the City of Renton, LAG-03-
002, executed on November 1, 2003; and
WHEREAS, effective November 1, 2006 in LAG 03-002 Addendum 1-07, the
annual combined building and ground rent by AirO, Inc. for the building located at 800
West Perimeter Road is eighty one thousand one hundred twenty four dollars ($81,124)
plus leasehold excise tax; and
WHEREAS, certain economic conditions have led to AirO, Inc.'s inability to meet
the monthly rent payments to the City for the building located at 800 West Perimeter
Road; and
WHEREAS, AirO, Inc., as of May 10, 2009, is in arrears by thirty seven thousand
four hundred fifteen dollars and thirty-four cents ($37,415.34)which includes overdue
rent on the 820 ramp and sewer lift station repair charges and late fee charges; and
WHEREAS, AirO, Inc., subleases space to WorldWind Helicopters, Inc. and
WorldWind Helicopters, Inc. holds an Operating Permit with the City of Renton; and
WHEREAS, Mr. Michael O'Leary owns both AirO, Inc. and WorldWind
Helicopters, Inc. who occupy the building located at 800 West Perimeter Road; and
WHEREAS, Mr. Michael O'Leary has approached the City and requested deferral
of collection of current overdue rent payments to the City for the building located at 800
West Perimeter Road until August 15, 2009; and
WHEREAS, Mr. Michael O'Leary has approached the City and requested deferral
of future rent payments to the City for the building located at 800 West Perimeter Road
for the months of May, June, July, and August,until August 15, 2009; and
WHEREAS, Mr. Michael O'Leary has offered to pay a significant penalty and
offered collateral to secure the deferral of rent to August 15, 2009; and
WHEREAS, AirO, Inc. has a tenant known as WorldWind Helicopters, Inc. which
has two federal contracts for wild fire fighting with the federal Department of Agriculture
—US Forest Service for 2008 with options to extend the contracts to the 2009 wild fire
fighting season; and
Lease Agreement 03-002 1
City of Renton AirO,Inc.
• LAG 03-002
Addendum# 2-09
WHEREAS, Mr. Michael O'Leary has provided to the City copies of these two
federal contracts; and
WHEREAS, Mr. Michael O'Leary has also provided contract documentation
showing that one of the three helicopters listed on the two federal contracts has already
been called into service for training purposes in advance of the 2009 wild fire fighting
season; and
WHEREAS, the amount of the contract for the first helicopter which has been
called into service for training purposes in advance of the wild fire fighting season shows
that Mr. Michael O'Leary's companies known as AirO, Inc. and WorldWind Helicopters,
Inc. has an ability to pay the overdue and deferred rent by August 15, 2009;
WHEREAS, it is in the best interest of the City to work with AirO, Inc. and
WorldWind Helicopters, Inc. to retain AirO, Inc.'s fixed base operation, retain
competition in the fuel business on the airport, secure rent from the building located at
800 West Perimeter Road, and to retain jobs in the City during these difficult economic
times,
NOW,THEREFORE, IT IS HEREBY AGREED AND COVENANTED BY AND
BETWEEN THE CITY OF RENTON AND AIRO, INC. AS FOLLOWS:
WITNESSETH:
1. Landlord agrees to defer until August 15, 2009 the collection of the overdue rent
payments and late fees which will be sixty seven thousand, seven hundred fifty three
and sixty one cents ($67,753.61)by August 15, 2009, (see Exhibit A - Itemized List
of Overdue and Deferred Rents and Fees, incorporated by this reference). This
amount includes the leasehold excise tax for the building located at 800 West
Perimeter Road, maintenance fees on the sewer lift station, and the overdue rent and
late fees from the terminated month-to-month lease on the 820 Ramp; and
2. Tenant agrees to pay by August 15, 2009, the monthly rent payments that are overdue
on the 820 ramp, plus all late fee charges on the overdue amount to August 15, 2009;
and
3. Tenant agrees to pay by August 15, 2009, an additional fee of ten thousand dollars
($10,000)which brings the total amount owed to seventy seven thousand, seven
hundred fifty three dollars and sixty one cents ($77,753.61); and
4. Tenant acknowledges that the next rental rate increase is due on November 1, 2009,
and agrees that on or before November 10, 2009, to pay the newly established rental
rate for the month of November, 2009, plus December, 2009. Tenant agrees to pay,
on or before November 10, 2009, the rent for January, 2010, through, and including,
June, 2010; and
Lease Agreement 03-002 2
City of Renton AirO,Inc.
• • LAG 03-002
Addendum#2-09
5. Tenant agrees to offer as collateral the existing 12,000 gallon 100LL fuel tank (and
associated pump, piping and credit card technology associated with the tank) which is
fixed to the landlord's property located at 800 West Perimeter Road and is identified
by Serial Number 15894 which is located on the pump skid side of the fuel tank; and
6. Tenant agrees to offer as collateral one Bell Jet Ranger helicopter with the tail number
N4MS and serial number 1345; and
7. Tenant agrees to execute a Promissory Note in the amount of seventy seven thousand,
seven hundred fifty three and sixty one cents ($77,753.61),payable to the city of
Renton on or before August 15, 2009; and
8. Tenant agrees to cooperate with the city of Renton in perfecting a UCC filing with the
state of Washington related to the collateral identified herein, and
9. Tenant agrees to execute a Security Agreement in favor of the city of Renton, in the
amount of seventy seven thousand, seven hundred fifty three and sixty one cents
($77,753.61), which debt is secured by the following collateral:
a. Bell Jet Ranger helicopter bearing tail number N4MS and serial number 1345; and
b. 12,000 gallon 100LL fuel tank and associated pump,piping and credit card
technology associated with the tank, Serial Number 15894; and
10. All other terms and conditions of the original Lease Agreement shall remain in full
force and effect.
AirO, Inc. CITY OF RENTON
a Washington Corporation a Mu icipal Corporation
/ Denis Law
Mayo
_
Title Ja 4o n A. Seth
Deputy City Clerk
-7.3/17
Date
App ved as to legal form
City Attorney
Lease Agreement 03-002 3
City of Renton AirO,Inc.
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