The URL can be used to link to this page

Home My WebLink AboutAdden 13 owe Near LAG84-006 Addendum# 11-0Q ADDENDUM TO LEASE AGREEMENT (City of Renton to Aerodyne LLC) THIS ADDENDUM to Lease Agreement 006-84 is effective as of the date of execution by the City of Renton, as indicated on the last page of this addendum. RECITALS: WHEREAS, on September 1, 1984, Plane Space Investments, Inc. entered into Lease Agreement LAG 006-84, and leased four contiguous parcels at the south end of the Airport, consisting of three unimproved parcels of 39,030 square feet, referred to as the Vehicle Parking Lot, East Tiedown Area and West Tiedown Area, and one improved parcel of 42,936 square feet consisting of an existing hangar building, and WHEREAS, on September 2, 1994, Plane Space Investments assigned Lease LAG 006- 84, in its entirety, to Puget Sound Industries, Inc., and WHEREAS, on March 25, 1997, Puget Sound Industries assigned Lease LAG 006-84, in its entirety, to Cliff Howard and Fred Bahr, and WHEREAS, on April 29, 1999, Cliff Howard and Fred Bahr assigned Lease LAG 006-84, in its entirety, to Southcove Ventures, LLC, and WHEREAS, during September 2002, the land rental rate for the approximately 39,030 square feet of unimproved land area leased by Southcove Ventures, LLC was determined to be $0.1641 per square foot per year and continuing until August 31, 2005; and WHEREAS, on September 1, 2005, and for the ensuing three (3) year period, the land rental rate was adjusted, using the Consumer Price Index-Urban, to a rate of$0.17 per square foot per year for the 39,030 square feet of leased area,resulting in an annual rental amount of $6,635.10 (39,030 x $0.17 = $6,635.10), and continuing until August 31, 2008, and WHEREAS, during September 2002, the land rental rate for the approximately 42,936 square feet of improved land area leased by Southcove Ventures, LLC was determined to be $0.3282 per square foot per year and continuing until August 31, 2005; and WHEREAS, on September 1, 2005, and for the ensuing three(3) year period, the land rental rate was adjusted, using the Consumer Price Index-Urban, to a rate of$0.35 per square foot per year for the 42,936 square feet of leased area, resulting in an annual rental amount of $15,027.60 (42,936 x $0.35 = $15,027.60), and continuing until August 31, 2008, and tere LAG 006-84 Addendum# WHEREAS, on October 28, 2005, Southcove Ventures, LLC agreed to increase its unimproved leased area by 4,555 square feet for a total unimproved leased area of 43,585 square feet, and WHEREAS, during May 2004, Southcove Ventures, LLC notified the City of Renton of their desire to assign the lease from Southcove Venture LLC to Aerodyne LLC, and WHEREAS, Southcove Ventures, LLC did assign its lease to Aerodyne, LLC, and the assignment was recorded in Addendum 12-06 of LAG 006-84, 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, and again on July 17, 2008, Aerodyne, LLC, was notified by certified letters that the City intended to use a means other than the Consumer Price Index-Urban to adjust the land rental rate for the readjustment period September 1, 2008, through September 1, 2011, and WHEREAS, a portion of the 43,585 square feet of"unimproved leased area" will hereafter be referred to as a portion of the property located inside the perimeter fence; and that portion the property located inside the perimeter fence is 34,774 square feet as shown in Exhibit A; and WHEREAS, the 42,936 square feet of area previously referred to as "improved"remains unchanged in this addendum, except that hereafter it will be referred to as a portion of the property inside the perimeter fence, and WHEREAS, the remaining portion of the 43,585 square foot leased area formerly referred to as "unimproved leased area", will hereafter be referred to as the parking lot located west of the southern entrance to the airport as shown on Exhibit B, and WHEREAS, the City notified Aerodyne, LLC that the land area leased by Aerodyne, LLC would be adjusted to reflect the change in the total square footage of the leased area resulting from the installation of the Clayton Scott statue(which reduced the size of the parking lot west of the southern entrance to the airport) and the installation of the concrete walls. Any land lease credit due to Aerodyne, LLC would be paid to Aerodyne, LLC retroactively to June 1, 2006 when construction began, and WHEREAS, a new parking area was created east of the southern entrance to the airport as shown on Exhibit C to compensate for the parking lost due to installation of the Clayton Scott Statue. Lease Agreement 006-84 2 City of Renton to Aerodyne,LLC it 'rale LAG 006-84 Addendum# NOW,THEREFORE, IT IS HEREBY AGREED AND COVENANTED BY AND BETWEEN THE CITY OF RENTON AND AERODYNE, LLC, AS FOLLOWS: WITNESSETH: 1. Lessor and Lessee do hereby agree that the 2007 appraised land lease rate is established at $0.57 per square foot per year for the land inside of the perimeter fence and that the two (2) parking areas outside of the perimeter fence have a market rate of $0.38 per square foot per year, or 66% of the appraised land rate because of its limited marketability, and 2. Lessor and Lessee do hereby agree that the leased area inside the perimeter fence and south of the taxilane is reduced from 35,146 square feet to 34,774 square feet as shown in Exhibit A and that the area north of the taxilane remains unchanged at 42,936 square feet or a total land area of 77,710 square feet inside the perimeter fence (34,774 sq. ft. + 42,936 sq. ft. = 77,710 sq. ft.), and 3. Lessor and Lessee do hereby agree that the parking lot west of the south entrance to the airport is now 4,518 square feet as shown in Exhibit B, and that the new parking lot located east of the south entrance to the airport is now 1,466 square feet as shown in Exhibit C, or a total parking area of 5,984 square feet for the two (2) parking lots (4,518 sq. ft. + 1,466 sq. ft. = 5,984 sq. ft.), and 4. Lessor and Lessee do hereby agree that the annual lease payment for the area inside the perimeter fence is $44,294.70 per year plus the leasehold excise tax (77,710 sq. ft. X $0.57/sq. ft./yr = $44,294.70/yr.), and 5. Lessor and Lessee do hereby agree that the annual lease payment for the two parking areas is $2,273.92 per year plus the leasehold excise tax (5,984 sq. ft. X $0.38/sq. ft./yr = $2,273.92/yr.), and 6. Lessor and Lessee do hereby agree that the annual land rent rates in Paragraph 1 shall remain in effect until August 31, 2011, 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. Minimum base rental for any extended period shall not be less than the current annual rental of$2,273.92 for the two (2)parking lots and $44,294.70 for the land inside the perimeter fence, or a total annual land rent of$46,568.62 plus leasehold excise tax. 7. 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. Lease Agreement 006-84 3 City of Renton to Aerodyne,LLC Noe Nee LAG 006-84 Addendum# 8. 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). 9. All other terms and conditions of the original Lease Agreement and Addenda shall remain in full force and effect. AERODYNE, LLC CITY OF RENTON a Washington Corporation a '" nicipal Corporation 44, // . • — enis Law Mayor Attest: (Pre-4 )6 /t rui: (t)a1 Title Bonnie Walton City Clerk X6441 : /o 0200? Date Approv as to legal form 044,1414(5p/44.01/ City Attorney Lease Agreement 006-84 4 City of Renton to Aerodyne,LLC