HomeMy WebLinkAboutAdden 8 New LAG 001-88
Addendum# 8-10
ADDENDUM TO LEASE AGREEMENT
(City of Renton to Bruce J Leven)
THIS ADDENDUM to Lease Agreement LAG 001-88 is effective as of June 1, 2010.
RECITALS:
WHEREAS, Bruce J Leven has a Lease Agreement with the City of Renton, LAG-
001-88, executed on January 1, 1988; and
WHEREAS, LAG 001-88 relates to two separate lease parcels; one being located
on the east side (East Tiedown Area); the other being located on the southwest end
(West Side Office Property); and
WHEREAS, on June 1, 2005, the land rental rate for the East Tiedown Area,
consisting of approximately 68,138 square feet of land area leased by Bruce J Leven,
was determined to be $0.18 per square foot per year and continuing until June 1, 2010;
and
WHEREAS, on June 1, 2005,the land rental rate for the West Side Office
Property, consisting of approximately 70,933 square feet of land area leased by Bruce J
Leven, was determined to be $0.368 per square foot per year and continuing until June
1, 2010; a n d
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. The market appraisal concluded that the current fair market ground lease
rate is $0.62 for all ground leases on the Airport; and
WHEREAS, in a letter dated March 16, 2010, Bruce J Leven was notified that the
lease rate would be readjusted using a means other than the Consumer Price Index-
Urban; and
WHEREAS, on June 1, 2010, and for the ensuing five (5) year period, the land
rental rate for the East Side Tiedown Area was adjusted, using the market appraisal, to
a rate of$0.62 per square foot per year for the 68,138 square feet of leased area,
resulting in an annual rental amount of$42,245.56 (68,138 x $0.62), and continuing
until June 1, 2015; and
WHEREAS, on June 1, 2010, and for the ensuing five (5) year period,the land
rental rate for the West Side Office Property was adjusted, using the market appraisal,
to a rate of$0.62 per square foot per year for the 70,933 square feet of leased area,
resulting in an annual rental amount of$43,978.46 (70,933 x$0.62), and continuing
until June 1, 2015; and
ORIGINAL
Lease Agreement 001-88 1
City of Renton to Bruce J Leven
`444w LAG 001-88
Addendum#
NOW,THEREFORE, IT IS HEREBY AGREED AND COVENANTED BY AND BETWEEN THE
CITY OF RENTON AND BRUCE J LEVEN AS FOLLOWS:
WITNESSETH:
1. The Lessor and Lessee do hereby agree to the use of a 2009 Market Appraisal,
performed by Allen Brackett Shedd, as the basis for establishing a fair market rate.
2. The Lessor and Lessee do hereby agree to an annual land rent of$42,245.56 (68,138
x$0.62 =$42,245.56), for the 68,138 square feet identified as East Side Tiedown
Area in Lease Agreement LAG 001-88, Addendum 07-05.
3. The Lessor and Lessee do hereby agree to an annual land rent of$43,978.46 (70,933
x $0.62 = $43,978.46), for the 70,933 square feet identified as West Side Office
Property in Lease Agreement LAG 001-88, Addendum 07-05.
4. Lessor and Lessee do hereby agree that the annual land rent rate in paragraphs 2
and 4 shall remain in effect until June 1, 2015, 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 using the increase of the Consumer Price Index, subject
to paragraph 6 below. Minimum base rental for any period shall not be less than
the current annual rental of$86,224.02 ($42,245.56 +$43,978.46).
5. 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.
6. 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).
Lease Agreement 001-88 2
City of Renton to Bruce J Leven
__ov ',owe LAG 001-88
Addendum#
7. All other terms and conditions of the original Lease Agreement shall remain in full
force and effect.
Bruce even CITY OF RENTON
a Wa ingto Corporation a Municipal Corporation
/A ,
Denis Law
Mayor
6611.14,4e; .4 Cckm-
Title Bonnie Walton
City Clerk
924 1, old/0
Date
Appro;, • as to legal form
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City Attorney
Lease Agreement 001-88 3
City of Renton to Bruce J Leven