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HomeMy WebLinkAboutAdden 09 LAG-87-001, Adden #9-15 LAG 001-87 Addendum 9-15 ADDENDUM TO LEASE AGREEMENT City of Renton to Boeing Employee Flying Association Inc THIS ADDENDUM to Lease Agreement LAG 001-87 is effective as of June 1, 2015, by the City of Renton, a municipal corporation (Lessor) and Boeing Employee Flying Association Inc., a Washington corporation (Lessee), and amends that certain lease agreement LAG 001- 87, dated January 1, 1987. RECITALS: WHEREAS, under LAG 001-87, effective January 1, 1987, the City of Renton (Lessor) had leased to the Boeing Employee Flying Association (Lessee) certain land on the Renton Municipal Airport, Renton, Washington, until December 31, 2019; and WHEREAS, under LAG 001-87, Lessee leases approximately 95,493 square feet of ground space, including 6,736 square feet for a driveway access to the 850 Building; and WHEREAS, on June 1, 2010, the land rental rate for the approximately 88,757 (95,493—6,736) square feet of land area leased by Lessee was determined to be $0.62 per square foot per year and continuing until June 1, 2015; and WHEREAS, also on June 1, 2010, the land rental rate for the driveway access of approximately 6,736 square feet of land area leased by Lessee was determined to be fifty percent (50%) of the base land rate, or$0.31 per square foot per year and continuing until June 1, 2015; and WHEREAS, on January 8, 2015, a new land rental rate was established, through the lease arbitration process, at a rate of$0.7252 per square foot per year; and WHEREAS, pursuant to LAG 001-87, Addendum 6-05 paragraph 5, in a letter dated March 18, 2015, Lessee 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 June 1, 2015, the land rental rate was adjusted using the lease arbitration process, to a rate of$0.7252 per square foot per year for the 88,757 square feet of leased land, resulting in an annual rental amount of$64,366.58 (88,757 x $0.7252), and continuing until December 31, 2019; and ORIGINAL Addendum 9-15 to LAG 001-87 1 City of Renton to Boeing Employees Flying Association Inc LAG 001-87 Addendum 9-15 WHEREAS, on June 1, 2015, the land rental rate for the driveway access, being a joint use area and with a reduced land rental rate that is fifty percent (50%) of the existing land rental rate, was adjusted to a rate of$0.36 ($0.7252 x .50) per square foot per year for the 6,736 square feet of driveway access, resulting in an annual rental amount of$2,424.96 (6,736 x$0.36), and continuing until December 31, 2019. NOW,THEREFORE, IN CONSIDERATION OF THE TERMS AND CONDITIONS HEREIN CONTAINED AND FOR OTHER GOOD AND VALUABLE CONSIDERATION,THE RECEIPT AND SUFFICIENCY OF WHICH IS HEREBY ACKNOWLEDGED, LESSOR AND LESSEE AGREE TO AMEND THE LEASE AND LEASE ADDENDA AS SET FORTH BELOW: WITNESSETH: 1. The Lessor and Lessee do hereby agree to amend section 2 of LAG 001-87 to provide an annual land rent of$64,366.58 (88,757 x$0.7252), PLUS leasehold excise tax,for the 88,757 square feet identified in lease LAG 001-87, effective June 1, 2015 through December 31, 2019. 2. The Lessor and Lessee do hereby agree to amend section 2 of LAG 001-87 to provide an annual land rent of$2,424.96 (6,736 x$0.36), PLUS leasehold excise tax,for the 6,736 square feet of driveway access identified in Addendum 8-10 of lease LAG 001- 87, effective June 1, 2015 through December 31, 2019. 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. Boeing Employee Flying Association Inc CITY OF RENTON a Washington corporation a Mu icipal Corporation )4'14 /0"/"4'641 tiVIA)0 1 /1/7 Denis Law Mayor Addendum 9-15 to LAG 001-87 2 City of Renton to Boeing Employees Flying Association Inc LAG 001-87 Addendum 9-15 -�,�9:CI-T4 / ft Title Jaso Sets pity Clerk \\\�\\Q\�,,oE,,,REAf Date * SEAL T * Approv as to legal form _ iteis)pc:ar 4slit ;17/1.) 6.sb• City Attorney TED 0 N/81111111H1H Addendum 9-15 to LAG 001-87 3 City of Renton to Boeing Employees Flying Association Inc