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HomeMy WebLinkAboutAdden 5On LAG —011-85 Addendum #05-02 ADDENDUM TO LEASE AGREEMENT (City of Renton to Kaynan, Inc) THIS ADDENDUM to Lease Agreement LAG 011-85 is effective as of the date of execution by the City of Renton, as indicated on the last page of this addendum. RECITALS: WHEREAS, during June 1999, the land rental rate for the approximately 27,885 square feet of land area leased by Kaynan, Inc. was established at $0.2931 per square foot per year, which resulted in an annual rental rate of $8,173.09, and such rate was to continue until June 1, 2002, and WHEREAS, both parties desire to make periodic adjustments to the land rental rate based upon the Consumer Price Index -Urban. NOW, THEREFORE, IT IS HEREBY AGREED AND COVENANTED BY AND BETWEEN THE CITY OF RENTON AND KAYNAN, INC. AS FOLLOWS: WITNESSETH: 1. The Lessor and Lessee do hereby agree to an annual land rent of $9,135.13 for the 27,885 square feet identified in Lease Agreement LAG 011-85. 2. Lessor and Lessee do hereby agree that the annual land rent rate in Paragraph 1 shall remain in effect until June 1, 2005, and, effective that date the rental rate shall automatically be readjusted by and between the parties as specified in paragraph 17 of the Lease Agreement, using the increase of the Consumer Price Index, and for each three (3) year period thereafter. Minimum base rental for any extended period, shall not be less than the current annual rental of $9,135.13. 3. 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. 4. Lessor and Lessee do further agree that the difference between the CPI -U of June 1, 1999 to June 1, 2002, is 11.78% (188.8-168.9=19.9/168.9=0.1178 or 11.78%). This results in an annual rate increase from $0.2931 to $0.3276 per square foot ($9,135.13/27,885 = $0.3276). 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 Lease Agreement 011-85 City of Renton to Kaynan, Inc. ORIV,,'k'�w CM `'0W LAG —011-85 Addendum #05-02 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). 6. All other terms and conditions of the original Lease Agreement shall remain in full force and effect. KAYNAN, INC. a Washington Corporation Lease Agreement 011-85 City of Renton to Kaynan, Inc. CITY OF RENTON a Municipal Corporation ayor, Jesse Tanner City Clerk, Bonnie Walton /a -.4 _.-1'e940'4 Date City Attorney