HomeMy WebLinkAboutAdden 5 *00, LAG 93-004
Amendment 05-13
ADDENDUM TO LEASE AGREEMENT
(City of Renton to BHC, Inc.)
THIS ADDENDUM to Lease Agreement LAG 93-004 is effective as of October 28,
2013.
RECITALS:
WHEREAS, BHC Inc. (hereinafter "Tenant") has a Lease Agreement with the City
of Renton (hereinafter "Landlord"), LAG 93-004, executed on October 28, 1993; and
WHEREAS, on October 28, 2008, the land rental rate for the approximately
48,778.51 square feet of leased area was determined to be $0.57 per square foot per
year and continuing until October 28, 2013; 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 (hereinafter "market appraisal"). 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, pursuant to LAG 93-004 Addendum 4-09, in a letter dated April 5,
2013, Tenant was notified by certified letter that the lease rate would be readjusted
using a means other than the Consumer Price Index-Urban; and
WHEREAS, on October 28, 2013, and for the ensuing five (5) year period, the
land rental rate was adjusted, using the 2009 Market Appraisal, to a rate of$0.62 per
square foot per year for the 48,778.51 square feet of leased area, resulting in an annual
rental amount of$30,242.68 (48,778.51 sq. ft. x $0.62), and continuing until October
28, 2018; and
NOW,THEREFORE, IT IS HEREBY AGREED AND COVENANTED BY AND BETWEEN THE
CITY OF RENTON AND BHC INC. AS FOLLOWS:
WITNESSETH:
1. Landlord and Tenant agree to use the 2009 Market Appraisal to amend section 3.1.
of LAG 93-004 to establish an annual land rent of$30,242.68 (48,778.51 x$0.62),
for the 48,778.51 square feet identified in lease LAG 93-004 through October 28,
2018.
ORIGINAL
Lease Agreement LAG 93-004 1
City of Renton to BHC Inc.
*ftw N"00
LAG 93-004
Amendment 05-13
2. Effective as of October 28, 2013, Section 3.1. of LAG 93-004 is hereby amended to
read as follows:
3.1. Minimum Monthly Rent: Landlord and Tenant do hereby agree that
Tenant shall pay to Landlord a Minimum Monthly Rent in the sum of two
thousand five hundred twenty dollars and twenty two cents ($2,520.22),
which amount is one-twelfth of the Total Annual Rent of$30,242.68, PLUS
leasehold excise tax as described in Section 3.6. of lease LAG 93-004,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 payment
shall be made to the City of Renton, Renton Municipal Airport, 616 West
Perimeter Road-Unit A, Renton,Washington 98057. The Minimum Monthly
Rent is computed as follows:
Rental Payment Schedule
48,778.51 sq.ft. @ $0.62/sq.ft. per year= $30,242.68 annual rent
divided by 12=$2,520.22 rental per month, PLUS leasehold excise tax
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.
BHC Inc. CITY OF RENTON
a Washington Corporation a Municipal Corporation
Denis Law
N Mayor
CF
Title \A� Vic;f Bonnie Walton
G. City Clerk
AL
o • ,°, bate
Approved as to legal form
Lease Agreement LAG 93-004 2
City of Renton to BHC Inc.
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