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HomeMy WebLinkAboutAdden 06 Nee LAG 001-87 Addendum# 6-05 ADDENDUM TO LEASE AGREEMENT (City of Renton to Boeing Employee Flying Association) THIS ADDENDUM to Lease Agreement LAG 001-87 is effective as of the date of execution by the City of Renton, as indicated on the last page of this addendum. RECITALS: WHEREAS, Boeing Employee Flying Association has a Lease Agreement with the City of Renton, LAG-001-87, executed on January 1, 1987, for a term of thirty-two (32) years with an option to renew for another ten(10)year period to expire on December 31, 2029 and WHEREAS, during June 2000, the land rental rate for the approximately 124,838 square feet of land area leased by Boeing Employee Flying Association was determined to be $0.3220 per square foot per year and continuing until June 1, 2005; and WHEREAS, on June 1, 2005, and for the ensuing five (5) year period, the land rental rate was adjusted, using the Consumer Price Index-Urban, to a rate of$0.3567 per square foot per year for the 124,838 square feet of leased area, resulting in an annual rental amount of$44,529.71 (124,838 x $0.3567 = $44,529.71), and continuing until June 1, 2010. NOW, THEREFORE, IT IS HEREBY AGREED AND COVENANTED BY AND BETWEEN THE CITY OF RENTON AND BOEING EMPLOYEE FLYING ASSOCIATION AS FOLLOWS: WITNESSETH: 1. Lessor and Lessee agree that the difference between the CPI-U of April 25, 2000 to March 16, 2005, is 10.79% (195.1 — 176.1 / 176.1 = 0.1079 or 10.79%). This results in an annual rate increase from $0.3220 to $0.3567 per square foot (0.3220 x 1.1079 = $0.3567); and 2. The Lessor and Lessee do hereby agree to an annual land rent of$44,529.71 (124,838 x 0.3567 =44,529.71) for the 124,838 square feet identified in Lease Agreement LAG 001-87. 3. Lessor and Lessee do hereby agree that the annual land rent rate in Paragraph 1 shall remain in effect until June 1, 2010, and effective as of that date the rental rate shall automatically be readjusted by and between the parties using the increase of the Consumer Price Index, and for each five (5)year period thereafter. Minimum base rental for any extended period shall not be less than the current annual rental of $44,529.71. ORIGINAL Lease Agreement 001-87 1 City of Renton Boeing Employee Flying Association �✓ ' LAG 001-87 Addendum# 6-05 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 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. Boeing Employee Flying Association CITY OF RENTON a Washington Corporation a Municipal Corporation ietereiz thu2az,: Kath K olker-Wheeler Y Mayor PEE s,©r"Af7' / &? IGt-et-Q)-,. Title Bonnie Walton City Clerk 9-as Date Appro 'as to le. J for f City Attorney H:\AIR\Leases and Operating Permits\Lease Forms\CPI Increase Addendum Template.doc Lease Agreement 001-87 2 City of Renton Boeing Employee Flying Association