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Addendum# 4-10
ADDENDUM TO LEASE AGREEMENT
(City of Renton to Lane Hangar Condominium Association, Inc.)
THIS ADDENDUM to Lease Agreement LAG 99-003 is effective as of August 1,
2010.
RECITALS:
WHEREAS, Lane Hangar Condominium Association, Inc. has a Lease Agreement
with the City of Renton, LAG-99-003, executed on August 1, 1998; and
WHEREAS, on August 1, 2007, the land rental rate for the approximately 41,366
square feet of land area leased by Lane Hangar Condominium Association, Inc., was
determined to be$0.367 per square foot per year and continuing until August 1, 2010;
and
WHEREAS, in February 2009, the Airport contracted with Allen Brackett Shedd
to conduct an independent market appraisal of all Airport leased areas to determine the
fair market value. The market appraisal determined the fair market ground lease rate to
be $0.62 per square foot per year for all ground leases on the Airport; and
WHEREAS, in a letter dated May 26, 2010, Lane Hangar Condominium
Association, Inc. was notified that the lease rate would be readjusted using a means other
than the Consumer Price Index-Urban; and
WHEREAS, on August 1, 2010, and for the ensuing three (3) year period, the land
rental rate was adjusted, using the market appraisal, to a rate of$0.62 per square foot per
year for the 41,366 square feet of leased area, resulting in an annual rental amount of
$25,646.92 (41,366 x $0.62), and continuing until July 31, 2013.
NOW, THEREFORE, IT IS HEREBY AGREED AND COVENANTED BY AND
BETWEEN THE CITY OF RENTON AND LANE HANGAR CONDOMINIUM
ASSOCIATION, INC. AS FOLLOWS:
WITNESSETH:
1. The Lessor and Lessee do hereby agree to the use of a 2009 Market Appraisal,
performed by Allen Brackett Shedd, as the basis for establishing a fair market rate.
2. The Lessor and Lessee do hereby agree to an annual land rent of$25,646.92 (41,366 x
$0.62 = $25,646.92), for the 41,366 square feet identified in Lease Agreement LAG
99-003.
ORIGINAL.
Lease Agreement 99-003 I
City of Renton to Lane Hangar Condominium Association,Inc.
LAG 99-003
Addendum#
3. Lessor and Lessee do hereby agree that the annual land rent rate in paragraph 2 shall
remain in effect until July 31, 2013, and effective as of that date, and for each three
(3) year period thereafter, the rental rate shall automatically be readjusted by and
between the parties using the increase of the Consumer Price Index, subject to
paragraph 5 below. Minimum base rental for any period shall not be less than the
current annual rental of$25,646.92.
4. Lessor and Lessee do hereby further agree that the Consumer Price Index information
to be used for rental adjustments shall be the Consumer Price Index-Urban (CPI-U)
then in effect for all urban consumers, as published by the US Department of Labor
for the Seattle-Tacoma Metropolitan Area.
5. Lessor and Lessee do hereby further agree that at least thirty(30) days prior to the
Rental Adjustment Date either party shall, if they desire to adjust the base land rental
rate for the ensuing three(3) year period by a means other than the Consumer Price
Index-Urban, provide to the other party a written request for readjustment of the rental
rate pursuant to RCW 14.08.120(5).
6. All other terms and conditions of the original Lease Agreement shall remain in full
force and effect.
Lane Hangar Condominium CITY OF RENTON
Association, Inc. a Municipal Corporation
a Washington Corporation
De is Law
Mayor
Title Bonnie Walton
City Clerk
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D e
rd as to legal form
City Attorney
Lease Agreement 99-003 2
City of Renton to Lane Hangar Condominium Association,Inc.