HomeMy WebLinkAboutAdden 4 LAG 93-004
*We N"Ole Addendum #4-09
ADDENDUM TO LEASE AGREEMENT
(City of Renton to BHC, Inc.)
THIS ADDENDUM to Lease Agreement LAG 93-004 is effective as of the date of
execution by the City of Renton, as indicated on the last page of this addendum.
RECITALS:
WHEREAS, BHC, Inc. has a Lease Agreement with the City of Renton, LAG-93-004,
executed on October 28, 1993; and
WHEREAS, on October 28, 2003, the land rental rate for the approximately 48,778.51
square feet of land area leased by BHC, Inc. was determined to be $0.378 per square foot per
year and continuing until October 28, 2008; and
WHEREAS, in June 2007, the Airport contracted with Allen Brackett Shedd to conduct
an independent market appraisal of all Airport leased areas to determine that the fair market
value is $0.57 for all ground leases on the Airport; and
WHEREAS, on February 26, 2008, the Lessee was notified that the lease rate would be
readjusted using a means other than the Consumer Price Index-Urban; and
WHEREAS, on October 28, 2008, and for the ensuing five (5) year period, the land
rental rate will be adjusted, using the 2007 Market Appraisal, to a rate of$0.57 per square foot
per year for the 48,778.51 square feet of leased area, resulting in an annual rental amount of
$27,803.75 (48,778.51 sq. ft. x $0.57 per square foot, per year) plus Leasehold Excise Tax,
and continuing until October 28, 2013.
NOW, THEREFORE, IT IS HEREBY AGREED AND COVENANTED BY AND
"'t TI T TIIT /�T'T�7 rj TT �1�T AND �T�('� T
ISL' i vi�L'E THE i.lt1 OF RE �TOl! A �D B11C, INC., .,SF LL.OEV .
WITNESSETH:
1. The Lessor and Lessee do hereby agree to an annual land rent of$27,803.75, for the
48,778.51 square feet identified in lease agreement LAG 93-004.
2. Lessor and Lessee do hereby agree that the annual rent shall remain in effect until
October 28, 2013, and effective as of that date, and for each five (5) year period thereafter, the
rental rate shall automatically be readjusted by and between the parties as specified in
paragraph 3 of the lease, utilizing the increase of the Consumer Price Index. Minimum base
rental for any extended period shall not be less than the current annual rental of$27,803.75.
LEASE AGREEMENT 93-004
City of Renton to BHC,Inc. 1
*ftw 140w, LAG 93-004
Addendum-g a__p q_
3. 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.
4. Lessor and Lessee do further agree to the use of a 2007 Market Appraisal,
performed by Allen Brackett Shedd, as the basis for establishing a fair market rate.
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 five(5) 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.
BHC, INC CITY OF RENTON
A Washington Corporation a Municipal Corporation
r
Denis Law
Mayor
�C�d�►.N,c,r� ,4 LUG
Bonnie Walton,
City Clerk
!'PA.azi, /, aoe
Date
Approved as to legal form
City Attorney
LEASE AGREEMENT 93-004
City of Renton to BHC,Inc. 2