HomeMy WebLinkAboutAdden 9-rev LAG 011-85
Addendum 9-15
(supersedes Addendum 9-14)
ADDENDUM TO LEASE AGREEMENT
(City of Renton to Kaynan, Inc.)
THIS ADDENDUM to Lease Agreement LAG 011-85 is effective as of June 1, 2014.
RECITALS:
WHEREAS, Kaynan, Inc. has a Lease Agreement with the City of Renton, LAG 011-
85, executed on July 1, 1985; and
WHEREAS, Kaynan Inc. leases approximately 27,085 square feet of ground space,
and a City-owned building, referred to as #5-01, situated on the ground lease space;
and
WHEREAS, on June 1, 2011, the land rental rate for the approximately 27,085
square feet of land area leased by Kaynan, Inc. was determined to be $0.62 per square
foot per year and continuing until June 1, 2014; and
WHEREAS, pursuant to LAG 011-85, Addendum 7-08 paragraph 5, in a letter
dated April 4, 2014, 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, effective June 1, 2014, Lessor had adjusted the land lease rate to
$0.75 per square foot per year, and Lessee had paid said rental rate, pursuant to
Addendum 9-14 to LAG 011-85; and
WHEREAS, Lessor and Lessee desire to withdraw Addendum 9-14 to LAG 011-85
and have it superseded by this Addendum 9-15 ; and
WHEREAS, on January 8, 2015, through a lease arbitration process, a new land
rental rate was established at $0.7252 per square foot per year; and
WHEREAS, on June 1, 2014, and for the ensuing three (3) year period, the land
rental rate should be adjusted, using a lease arbitration determination, to a rate of
$0.7252 per square foot per year for the 27,085 square feet of leased area, resulting in
an annual rental amount of$19,642.04 (27,085 x $0.7252), and continuing until August
31, 2016; and
WHEREAS, The annual difference between 27,085 SQ. FT. X $0.75 and 27,085
SQ. FT. x $0.7252 IS $671.71 ($20,313.75— 19,642.04) The monthly amount of the
differential is $55.97 (671.71/ 12). The refund amount is Five Hundred Three dollars
Lease Agreement LAG 011-85 ORIGINAL 1
City of Renton to Kaynan,Inc.
LAG 011-85
Addendum 9-15
(supersedes Addendum 9-14)
and Seventy Three cents ($503.73) (9 months x $55.97), for the period beginning June
1, 2014 and ending February 28, 2015. The refund will be deducted from the land
rental amount for March 2015.
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 amend section 2 of LAG 011-85 to provide
an annual land rent of$19,642.04 (27,085 x $0.7252), for the 27,085 square feet
identified in lease LAG 011-85, effective June 1, 2014 through August 31, 2016.
2. The Lessor and Lessee do hereby agree to withdraw Addendum 9-14 to LAG 011-85.
This Addendum 9-15 shall supersede Addendum 9-14.
3. Lessor will deduct the amount of$503.73 from Lessee's invoice for March 1, 2015 to
reimburse Lessee for the overpaid rent for the period June 1, 2014 to February 28,
2015.
4. 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.
KAYNAN, INC. CITY OF RENTON
a Washington Corporation a Municipal Corporation
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Lease Agreement LAG 011-85 Mtn 2
City of Renton to Kaynan,Inc. ,;V,` ,��
LAG 011-85
Addendum 9-15
(supersedes Addendum 9-14)
Date
Approv s to legal form
064040444.4.704,24016.".4%.,
City Attorney
Lease Agreement LAG 011-85 3
City of Renton to Kaynan,Inc.