HomeMy WebLinkAboutAdden 6rn
LAG n1 1-R5
Addendum # 6-07
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, Kaynan, Inc. (Lessee) has a Lease Agreement with the City of
Renton (Lessor), LAG -011-85, executed on July 15, 1985; and
WHEREAS, during June 2002, the land rental rate for approximately 27,885
square feet of land area leased by the Lessee was determined to be $0.3276 per square
foot per year and continuing until June 1, 2005; and
WHEREAS, on June 1, 2005, the Lessee notified the Lessor of the desire to
terminate 800 square feet of leased area (Exhibit A) reducing the leased area from 27,885
square feet to 27,085 square feet; and
WHEREAS, on June 1, 2005, and for the ensuing three year period, the land rental
rate was adjusted using the Consumer Price Index -Urban, to a rate of $0.3385 per square
foot per year for the 27,085 square feet of leased area, resulting in an annual rental
amount of $9,168.27 (27,085 x $0.3385 = $9,168.27), and continuing until June 1, 2008;
and
WHEREAS, Section 1 of LAG 011-85 sets forth a lease term of 21 years
commencing on July 15, 1985 and terminating on July 14, 2006; and
WHEREAS, Section 23 of LAG 011-85 stipulates that the Lessee has the right and
option to renew or extend this Lease for an additional term of 10 years; and
WHEREAS, Section 23 of LAG 011-85 also stipulates that in the event that
Lessee desires to exercise the option to extend the lease term, the Lessee shall give the
Lessor notice at least 90 days prior to the expiration of the original term of LAG 011-85;
and
WHEREAS, the Lessee gave notice in a letter dated March 25, 2005 of the
Lessee's intent to exercise the 10 year option to extend the lease term from July 15, 2006
to July 14, 2016.
ORIGINAL
Lease Agreement 011-85
City of Renton to Kaynan, Inc.
rn
NNW LAG 011-85
Addendum #
NOW, THEREFORE, IT IS HEREBY AGREED AND COVENANTED BY AND
BETWEEN THE CITY OF RENTON AND KAYNAN, INC. AS FOLLOWS:
WITNESSETH:
Lessor and Lessee agree that the difference between the CPI -U of April 2002 to
March 16, 2005, is 3.34% (195.1 / 188.8 = 1.0334 or 3.34%). This results in an
annual rate increase from $0.3276 to $0.3385 per square foot
(0.3276 x 1.0334 = $0.3385), effective June 1, 2005; and
2. The Lessor and Lessee do hereby agree to an annual land rent of $9,168.27
(27,085 x 0.3385 = $9,168.27) for the 27,085 square feet identified in
Lease Agreement LAG 011-85.
3. Lessor and Lessee do hereby agree that the annual land rent rate in paragraph 1 shall
remain in effect until June 1, 2008, 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 three year period thereafter. Minimum base
rental for any extended period shall not be less than the current annual rental of
$9,168.27.
4. Lessor and Lessee do hereby 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.
Lessor and Lessee do hereby agree that at least 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 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. Lessor and Lessee do hereby agree that the Lessee's leased area is reduced by the 800
square foot leased area as shown in Exhibit A.
7. Lessor and Lessee do hereby agree that lease term of LAG 011-85 shall be extended
from July 16, 2006 to July 15, 2016.
8. All other terms and conditions of the original Lease Agreement shall remain in full
force and effect.
Lease Agreement 011-85
City of Renton to Kaynan, Inc.
Im
KAYNAN, INC.
Washington Corporation
Title
s"W LAG 011-85
Addendum #
CITY OF RENTON
a Municipal Corporation
Kathy Ke ker
Mayor
Bonnie Walton
City Clerk
Date
Approved as to legal form
City Attorney
H:\File Sys\AIR - Airport, Transportation Services Division\01 Administration\12 Real Property Management\Leases and Operating
Permits\KAYNAN\LEASE\CPI Increase Add to LAG011-85.doc
Lease Agreement 011-85
City of Renton to Kaynan, Inc.
cm
0
i
I
� r1l ry
v�
-+ o
I � m -n
GZi m -
I C •n
I
28
m �; z
� A w
in
b 00
O N
a
24' I
�a
°
a
n
Za
>n
<�.
_ -c
rn
Z
D
3
-4Q
=
Z
w ',
u
Z'
r
c M
o
-�+
Z
N
0
325'
w
I;v
C:
z
D
0
w
IE