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HomeMy WebLinkAboutLease LAG-14-003 LEASE AGREEMENT City of Renton to Rainier Flight Service, LLC MONTH-TO-MONTH BUILDING STORAGE SPACE LEASE THIS IS A MONTH TO MONTH LEASE AGREEMENT between THE CITY OF RENTON, a Washington municipal corporation ("Landlord"), and Rainier Flight Service LLC, a Washington limited liability corporation ("Tenant"). RECITALS: WHEREAS, the Landlord desires to lease a portion of airport property located in the 800 Building, located at 800 West Perimeter Road; and WHEREAS, the map and specific leased dimensions are shown in Exhibit A; and WHEREAS, the lease will be on a month-to-month basis for aircraft related storage space. NOW,THEREFORE, IT IS HEREBY AGREED AND COVENANTED BY AND BETWEEN THE CITY OF RENTON AND RAINIER FLIGHT SERVICE, LLC AS FOLLOWS: 1. GRANT OF LEASE: 1a. Legal Description: The center portion (60' wide x 110' deep) of the 800 Building located at 800 West Perimeter Road on the Renton Airport. The leased area contains six thousand six hundred (6,600) square feet, more or less, being a portion of the real property described in Exhibit A (Lease Map) attached hereto and made a part hereof as is fully set forth herein (the "Premises"). 2. CONDITIONS: 2a. Specific Conditions: This grant of lease is subject to the following: 2a(1) Easements, restrictions and reservations of record and as further set forth herein; 2a(2) Such rules and regulations as now exist or may hereafter be promulgated by the Landlord from time to time, including the Airport's Regulations and Minimum Standards which are incorporated herein by this LEASE AGREEMENT City of Renton to Rainier Flight Service Inc a Washington Limited Liability Corporation ORIGINAL 1 reference, and Landlord's standards concerning operation of public aviation service activities from the Airport; and 2a(3) All such non-discriminatory charges and fees for such use as may be established from time to time by Landlord; and 2a(4) TOGETHER WITH the privilege of Tenant to use the public portion of the Airport, including runway and other public facilities provided thereon, on a non-exclusive basis. 2b. No Conveyance of Airport: This Lease Agreement shall in no way be deemed to be a conveyance of the Airport, and shall not be construed as providing any special privilege for any public portion of the Airport except as described herein. The Landlord reserves the right to lease or permit the use of any portion of the Airport for any purpose deemed suitable for the Airport, except that portion that is leased hereby. 2c. Nature of Landlord's Interest: It is expressly understood and agreed that Landlord holds and operates the Airport, and the Premises under and subject to a grant and conveyance thereof to Landlord from the United States of America, acting through its Reconstruction Finance Corporation, and subject to all the reservations, restrictions, rights, conditions, and exceptions of the United States therein and thereunder, which grant and conveyance has been filed for record in the office of the Recorder of King County, Washington, and recorded in Volume 2668 of Deeds, Page 386; and further that Landlord holds and operates said airport and premises under and subject to the State Aeronautics Acts of the State of Washington (chapter 165, laws of 1947), and any subsequent amendments thereof or subsequent legislation of said state and all rules and regulations lawfully promulgated under any act or legislation adopted by the State of Washington or by the United States or the Federal Aviation Administration. It is expressly agreed that the Tenant also accepts and will hold and use this lease and the Premises subject thereto and to all contingencies, risks, and eventualities of or arising out of the foregoing, and if this lease or the period thereof or any terms or provisions thereof be or become in conflict with or impaired or defeated by any such legislation, rules, regulations, contingencies or risks, the latter shall control and, if necessary, modify or supersede any provision of this lease affected thereby, all without any liability on the part of or recourse against the Landlord in favor of Tenant, provided that Landlord does not exceed its authority under the foregoing legislation, rules, or regulations. 2d. Future Development/Funding: Nothing contained in this lease shall operate or be construed to prevent or hinder the future development, improvements, or operation of Airport by Landlord, its agents, successors or assigns, or any department or agency of the State of Washington or of the United States, or the consummation of any LEASE AGREEMENT City of Renton to Rainier Flight Service Inc a Washington Limited Liability Corporation 2 14W .✓ loan or grant of federal or state funds in aid of the development, improvement, or operation of the Renton Airport. 3. TERM: The term of this lease shall be month-to-month, commencing on July 1, 2014, and shall continue on a month-to-month basis until such time as one party gives the other written notice of termination, except that Landlord may terminate this lease upon not less than three days' notice in the case of nonpayment of rental. Either party may, upon written notice to the other delivered at least thirty (30) days before the end of the calendar month,terminate this lease without cause at such effective date. 3. RENTAL: 4a. Initial Rental: As rental for the above-described premises on a month-to- month basis, Tenant shall pay unto Landlord a monthly rental in the sum of One Thousand, Four Hundred Ninety Six Dollars and Zero Cents ($1,496.00), plus Leasehold Excise Tax as described in Paragraph 5 below, payable promptly in advance on the first day of each and every month. Tenant covenants that Kenmore Air Harbor, Inc. shall make all monthly rental payments to the Landlord. All such payments shall be made to the Renton Airport Administration Office, 616 West Perimeter Road-Unit A, Renton, Washington 98057. The initial rental is computed as follows, and is based upon an estimated building lease area (which the parties stipulate to be accurate) of 4,300 square feet. Rental Payment Schedule Building Component = 6,600 sq. ft. @ $ 1.97/sq. ft. per year (2014 appraised building rate) _ $13,002/yr rental, plus leasehold excise tax Land Component = 6,600 sq. ft. @ $ 0.75/sq. ft. per year= $4,950/yr rental, plus leasehold excise tax Total Monthly Building and Land Component = $13,002/yr+ $4,950/yr = $17,952 / 12 month = $1,496/ month, plus leasehold excise tax 4b. Rental Adiustment: Landlord shall give written notification to Tenant of any change in the rental amount at least thirty (30) days prior to the effective date of the rental adjustment. 4c. Late Payment Charge: It is hereby further agreed that if such rental is not paid before the 10th of each month then there will be added a late payment charge of 5% per month for each month of delinquency until paid. It is agreed that this late payment charge is a reasonable estimate of the increased costs to the city of the staff LEASE AGREEMENT City of Renton to Rainier Flight Service Inc a Washington Limited Liability Corporation 3 effort to monitor and collect late payments, as well as related city expenses due to such late payment. If any check received by Landlord is returned unpaid for any reason, Landlord reserves the right to make an additional charge up to the maximum amount allowed by law. 4d. Attorneys Fees/Collection Charges: Should it be necessary to refer this lease to an attorney (including those employed by the city) for collection or other court action involving breach of lease, occupancy after termination, or enforcement or determination of any other right and/or duty under this lease, then it is agreed that the prevailing party shall be entitled to recover its reasonable attorney's fees and costs of litigation as established by the court. If the matter is not litigated or resolved through a lawsuit, then any attorney's fees expenses for collection of past-due rent or enforcement of any right or duty hereunder shall entitle the city to recover, in addition to any late payment charge, any costs of collection or enforcement, including attorney's fees. 4e. Other Charges: Tenant further agrees to pay, in addition to the rentals hereinabove specified and other charges hereinabove defined, all fees and charges now in effect or hereafter levied or established by Landlord, or its successors, or by any other governmental agency or authority, being or becoming levied or charged against the premises, structures, business operations, or activities conducted by or use made by Tenant of, on, and from the leased premises which shall include, but not be limited to, all charges for light, heat, gas, power, garbage, water and other utilities or services rendered to said premises. 4f. Emergency Response: Tenant must provide reasonable access and response to the Airport Manager in times of emergency or urgency. The Tenant is wholly responsible to keep an up-to-date listing of aircraft types, identification, and owners on file and at the Airport Manager's office. 5. LEASEHOLD EXCISE TAX: Tenant hereby agrees and covenants to pay unto Landlord that certain leasehold excise tax as established by RCW Chapter 82.29A, now or as amended, or any replacement thereof, which tax shall be in addition to the stipulated monthly rental and shall be paid separately to the Director of Finance, City of Renton, at the same time the monthly rental is due. In the event that the State of Washington or any other governmental authority having jurisdiction thereover shall hereafter levy or impose any similar tax or charge on this lease or the leasehold estate, then Tenant agrees and covenants to pay said tax or charge, when due. Such tax or charge shall be in addition to the regular monthly rentals. 6. PAYMENT OF UTILITIES AND RELATED SERVICES. Tenant shall pay for all light, heat, gas, power, garbage, water, sewer and janitorial service used in the Premises. LEASE AGREEMENT City of Renton to Rainier Flight Service Inc a Washington Limited Liability Corporation 4 Landlord shall not be liable for any loss or damage caused by or resulting from any variation, interruption, or failure of said utility services due to any cause whatsoever. Landlord shall not be liable for temporary interruption or failure of such services incidental to the making of repairs, alterations or improvements, or due to accident, strike, act of God, or conditions or events not under Landlord's control. Temporary interruption or failure of utility services shall not be deemed a breach of the Lease or as an eviction of Tenant, or relieve Tenant from any of its obligations hereunder. 7. TENANT'S ACCEPTANCE OF PREMISES. By occupying the Premises, Tenant formally accepts the same in AS IS condition, and acknowledges that the Landlord has complied with all the requirements imposed upon it under the terms of this Lease with respect to the condition of the Premises at the commencement of this term. Tenant hereby accepts the premises subject to all applicable zoning, municipal, county and state laws, ordinances and regulations governing and regulating the use of the premises, and accepts this Lease subject thereto and to all matters disclosed thereby and by any exhibits attached hereto. Tenant acknowledges that neither Landlord nor Landlord's agent has made any representation or warranty as to the suitability of the Premises for the conduct of Tenant's business or use. Except as otherwise provided herein, Landlord warrants Tenant's right to peaceably and quietly enjoy the premises without any disturbance from Landlord, or others claiming by or through Landlord. 8. PURPOSE OF USE: 8a. Use of Premises: The Premises shall be used for storage of aircraft. 8b. Continuous Use: Tenant covenants that the premises shall be continuously used for each of those purposes during the term of the lease, shall not be allowed to stand vacant or idle, and shall not be used for any other purpose without Landlord's written consent first having been obtained. Consent of Landlord to other types of activities will not be unreasonably withheld. 8c. Non-Aviation Uses Prohibited: Tenant agrees that the Premises may not be used for uses or activities that are not related, directly or indirectly, to aviation. 8d. Si&ns: 8d(1) Advertising: No advertising matter or signs shall be at any time displayed on the leased premises without the written approval of Landlord, which will not be unreasonably withheld. LEASE AGREEMENT City of Renton to Rainier Flight Service Inc a Washington Limited Liability Corporation 5 ti✓ \0► 8e. Conformity with Rules: Tenant further covenants to keep and operate the Premises and all structures, improvements, and activities in conformity with all rules, regulations and laws now or hereafter adopted by Landlord, including the Airport's Regulations and Minimum Standards which are incorporated herein by this reference, the Federal Aviation Administration, the State Aeronautics Commission, or other duly constituted governmental authority, all at Tenant's cost and expense. 8f. Waste; Nuisance; Illegal Activities: Tenant covenants that he will not permit any waste, damage, or injury to the Premises or improvements thereon, nor allow the maintenance of any nuisance thereon, nor the use thereof for any illegal purposes or activities. 8g. Increased Insurance Risk: Tenant will not do or permit to be done in or about the premises anything which will be dangerous to life or limb, or which will increase any insurance rates upon the premises or other buildings and improvements. 8h. Hazardous Waste: 8h(1). Tenant's Representation and Warranty: In particular, Tenant represents and warrants to the Landlord that Tenant's use of the Premises will not involve the use of any hazardous substance (as defined by R.C.W. Chapter 70.105D, as amended), other than fuels, lubricants and other products which are customary and necessary for use in Tenant's ordinary course of business. 8(h)2. Standard of Care: Tenant agrees to use a high degree of care to be certain that no such hazardous substance is improperly used, released or disposed on the Premises during the term of this lease by Tenant, its agents or assigns, or is improperly used, released or disposed on the premises by the act of any third party. 8h(3). Indemnity: 8h(3)(a) The parties agree that Landlord shall have no responsibility to the Tenant, or any other third party, for remedial action under R.C.W. Chapter 70.105D, or other legislation, in the event of a release of or disposition of any such hazardous substance on, in, or at the Premises, and not caused by Landlord, during the term of this Lease. Tenant agrees to indemnify and hold harmless the Landlord from any obligation or expense, including fees incurred by the Landlord for attorneys, consultants, engineers, damages, including environmental resource damages, etc., arising by reason of the release or disposition of any such hazardous substance upon the Premises not caused by Landlord, including remedial action under R.C.W. Chapter 70.105D, during the term of this Lease. LEASE AGREEMENT City of Renton to Rainier Flight Service Inc a Washington Limited Liability Corporation 6 8h(3)(b) The parties agree that Tenant shall have no responsibility to the Landlord, or any other third party, for remedial action under R.C.W. Chapter 70.105D, or other legislation, in the event of a release of or disposition of any such hazardous substance on, in, or at the Premises, and not caused by Tenant, prior to the term of this Lease. Landlord agrees to indemnify and hold harmless the Tenant from any obligation or expense, including fees incurred by the Tenant for attorneys, consultants, engineers, damages, including environmental resource damages, etc., arising by reason of the release or disposition of any such hazardous substance upon the Premises not caused by Tenant, including remedial action under R.C.W. Chapter 70.105D, prior to the term of this Lease. 8h(4). Dispute Resolution: In the event of any dispute between the parties concerning whether any release of or disposition of any such hazardous substance on, in or at the premises (a) occurred during the term of this lease, or (b) was caused by Landlord, the parties agree to submit the dispute for resolution by arbitration upon demand by either party. Each party shall select one (1) arbitrator. The two (2) selected arbitrators, if unable to agree upon an arbitration award within a period of thirty (30) days after such appointment, shall select a third arbitrator. The third arbitrator shall be an engineer with experience in the identification and remediation of hazardous substances. The arbitrators shall make their decision in writing within sixty (60) days after their appointment, unless the time is extended by the agreement of the parties. The decision of a majority of the arbitrators shall be final and binding upon the parties. Each party shall bear the cost of the arbitrator named by it. The expenses of the third arbitrator shall be borne by the parties equally. 8i. Aircraft Registration Compliance: The Tenant is hereby notified of the Washington State law concerning aircraft registration Aircraft Laws and Regulations, Title 47.68.250 RCW: Public Highways and Transportation. 8i(1). Tenant shall annually, during the month of January, submit a report of aircraft status to the Airport Manager. One copy of this report shall be used for each aircraft owned by the Tenant, and sufficient forms will be submitted to identify all aircraft owned by the Tenant and the current registration status of each aircraft using the Aircraft Status Report form. If an aircraft is unregistered, an Unregistered Aircraft Report, will also be completed and submitted to the Airport Manager. 8i(2). Tenant shall require from an aircraft owner proof of aircraft registration or proof of intent to register an aircraft as a condition of leasing or selling tiedown or hangar space for an aircraft. Tenant shall further require that annually, thereafter, each aircraft owner using the Tenant's premises submits a report of aircraft status, or an Unregistered Aircraft Report. The Tenant shall annually, during the month of January, collect the aircraft owners' reports and submit them to the Airport Manager. LEASE AGREEMENT City of Renton to Rainier Flight Service Inc a Washington Limited Liability Corporation 7 8j. Aircraft airworthiness: Aircraft placed, parked or stored other than within hangar buildings must be airworthy. Whenever an aircraft is temporarily undergoing repairs exceeding 30 days, the Tenant will notify the Airport Manager of the repair status, and the date repairs will be completed. When requested by the Landlord, the Tenant must provide a schedule showing when repairs will be completed as to each such aircraft. If Tenant fails to adhere to an agreed-upon repair schedule, or fails to place and maintain the required red tag on the aircraft, the Tenant may be subject to Civil Penalties or termination of this lease upon proper notice from the City of Renton. 9. MAINTENANCE: 9a. Maintenance of Premises: The Premises and all of the improvements or structures thereon shall be used and maintained by Tenant in a neat, orderly, and sanitary manner. Landlord shall not be called upon to make any improvements, alteration, or repair of any kind upon the Premises. Tenant is responsible for the clean- up and proper disposal at reasonable and regular intervals of rubbish, trash, waste and leaves upon the Premises, including that have blown against fences bordering the Premises, whether as a result of the operation of Tenant's aircraft tie-down storage activities or having been deposited upon the Premises from other areas. 9b. Removal of Snow/Floodwater/Mud: Tenant shall be responsible for removal of snow and/or floodwaters or mud deposited therefrom from the Premises, with the disposition thereof to be accomplished in such a manner so as to not interfere with or increase the maintenance activities of Landlord upon the public areas of the Airport. 9c. Repair of Personal Property: It is further agreed that all personal property on the Premises shall be used at the risk of Tenant only, and that Landlord or Landlord's agents shall not be liable for any damage either to persons or property sustained by Tenant or other persons due to the Premises or improvements thereon becoming out of repair. 9d. Maintenance, Repair and Marking of Pavement: Tenant shall be responsible for the maintenance, repair and marking (painting) of pavement surrounding the buildings within the leased area. Such maintenance and repair shall be to Federal Aviation Administration standards as though the pavement were non-leased, public-use taxiway and/or apron pavement. Such maintenance and repair shall include, as a minimum, crack filling, weed control, slurry seal and the replacement of unserviceable pavement, as necessary. 9e. Landlord May Perform Maintenance: If Tenant fails to perform Tenant's obligations under this Paragraph, Landlord may at its option (but shall not be required LEASE AGREEMENT City of Renton to Rainier Flight Service Inc a Washington Limited Liability Corporation 8 'Vow 1400 to) enter the Premises, after thirty(30) days' prior written notice to Tenant, and put the same in good order, condition and repair, and the cost thereof together with interest thereon at the rate of twelve (12%) percent per annum shall become due and payable as additional rental to Landlord together with Tenant's next rental installment. 10. ALTERATIONS. 10a. Landlord's Consent Required: Tenant will not make any alterations, additions or improvements in or to the Premises without the written consent of Landlord first having been obtained. 10b. Protection from Liens: Before commencing any work relating to alterations, additions and improvements affecting the Premises, Tenant shall notify Landlord in writing of the expected date of commencement thereof. Landlord shall then have the right at any time and from time to time to post and maintain on the Premises such notices as Landlord reasonably deems necessary to protect the Premises and Landlord from mechanics' liens, materialmen's liens or any other liens. In any event, Tenant shall pay, when due, all claims for labor or materials furnished to or for Tenant at or for use in the Premises. Tenant shall not permit any mechanics' or materialmen's liens to be levied against the Premises for any labor or material furnished to Tenant or claimed to have been furnished to Tenant or to Tenant's agents or contractors in connection with work of any character performed or claimed to have been performed on the Premises by or at the direction of Tenant. 10c. Bond: At any time Tenant either desires to or is required to make any repairs, alterations, additions, improvements or utility installation thereon, or otherwise, Landlord may at its sole option require Tenant, at Tenant's sole cost and expense, to obtain and provide to Landlord a lien and completion bond in an amount equal to one and one-half(1-1/2)times the estimated cost of such improvements, to insure Landlord against liability for mechanics and materialmen's liens and to insure completion of the work. 10d. Landlord May Make Improvements: Tenant agrees that Landlord, at its option, may at its own expense make repairs, alterations or improvements which Landlord may deem necessary or advisable for the preservation, safety or improvement of the Premises or improvements located thereon, if any. 10e. Notification of Completion: Upon completion of capital improvements made on the Premises, it is the Tenant's responsibility to promptly notify Landlord of such completion. LEASE AGREEMENT City of Renton to Rainier Flight Service Inc a Washington Limited Liability Corporation 9 11. LIMITATION UPON LANDLORD'S LIABILITY. Landlord shall not be liable for any damage to property or persons caused by, or arising out of(a) any defect in or the maintenance or use of the Premises, or the improvements, fixtures and appurtenances of which the premises constitute a part; or (b) water coming from the roof, water pipes, flooding of the Cedar River or other body of water, or from any other source whatsoever, whether within or without the Premises; or (c) any act or omission of any Tenant or other occupants of the building, or their agents, servants, employees or invitees thereof. 12. HOLD HARMLESS: Tenant covenants to indemnify and save harmless Landlord against any and all claims arising from the conduct and management of or from any work or thing whatsoever done in or about the Premises or the improvements or equipment thereon during the lease term, or arising from any act or negligence of the Tenant or any of its agents, contractors, patrons, customers, or employees, or arising from any accident, injury, or damage whatsoever, however caused, to any person or persons, or to the property of any person, persons, corporation or other entity occurring during the lease term on, in, or about the Premises, and from and against all costs, attorney's fees, expenses, and liabilities incurred in or from any such claims or any action or proceeding brought against the Landlord by reason of any such claim, except such claims arising directly or indirectly out of Landlord's sole act or omission. Tenant further covenants that Tenant will satisfy all outstanding liens, or other debts. Tenant, on notice from Landlord, shall resist or defend such action or proceeding forthwith. 13. ASSIGNMENT: 13a. Assignment/Subletting: This lease or any part hereof shall not be assigned by Tenant, by operation of law or otherwise, nor shall the premises or any part thereof be sublet without the prior written consent of Landlord, which consent shall not be unreasonably withheld, subject to Landlord's receipt of commercially reasonable evidence that the proposed assignee or subtenant is in a financial condition to undertake the obligations of this lease, and, in the event of assignment, Landlord's receipt of an affidavit from the proposed assignee stating that it has examined this lease and agrees to assume and be bound by all of Tenant's obligations under this lease, to the same extent as if it were the original Tenant. If Tenant is a corporation, the transfer of a majority of Tenant's stock shall constitute an assignment for purposes of this paragraph. 13b. Subletting: Tenant may not sublet any portion of the Premises. 13c. Subsequent Consent Required: In the event written consent to assignment or subletting shall be given by Landlord, no other subsequent assignment, assignments, or subletting shall be made by such assignee or assignees, or subTenant, without the LEASE AGREEMENT City of Renton to Rainier Flight Service Inc a Washington Limited Liability Corporation 10 prior written consent of Landlord. It is expressly agreed that if consent is once given by the Landlord to the assignment of this lease or any interest therein or to the subletting of the whole or any part of the premises, then Landlord shall not be barred from afterwards refusing to consent to any further assignment of said lease or subletting of said leased premises. 13d. Release of Tenant's Liability: No subletting shall release Tenant of Tenant's obligation to pay the rent and to perform all other obligations to be performed by Tenant hereunder for the term of this Lease. No assignment shall so release Tenant unless Landlord's consent is obtained pursuant to Paragraph 13.c. In the event that Landlord's consent to assignment is so obtained, Tenant shall be relieved of all liability arising from this lease and arising out of any act, occurrence or omission occurring after Landlord's consent is obtained. The Tenant's assignee shall be deemed to have assumed and agreed to carry out all of the obligations of Tenant under this lease. 14. DEFAULT: 14a. Events of Default: It is expressly understood and agreed that in the event the Premises shall be deserted or vacated, or if default be made in the payment of the rent or any part thereof as herein specified, or if, without consent of the Landlord, the Tenant shall sell, assign, or mortgage this lease, or if default be made in the performance of any of the material covenants and agreements in this lease contained on the part of the Tenant to be kept and performed, or if Tenant shall fail to comply with any of the statutes, ordinances, rules, orders, regulations, and requirements of the federal, state, and city governments, or if Tenant shall file a petition for bankruptcy or be adjudicated a bankrupt, or make assignment for the benefit of creditors or take advantage of any insolvency act,the Landlord may, if it so elects, at any time thereafter, terminate this lease and the term hereof, on giving to the Tenant thirty (30) days' notice, in writing, of the Landlord's intention to do so if the event causing the default is not corrected. 14b. Additional Security: In the event of default, as provided above, which default remains uncured for more than ten (10) days after Landlord provides notice of default, Landlord may request and Tenant shall provide adequate assurance of future performance of all obligations under this lease. The adequacy of any assurance shall be determined according to commercially reasonable standards. Adequate assurance shall include, but not be limited to, a deposit in escrow, a guarantee by a third party acceptable to Landlord, a surety bond, or a letter of credit. Tenant's failure to provide adequate assurance within twenty (20) days of receipt of a request by Landlord shall constitute a material breach and Landlord may in its discretion terminate this lease. LEASE AGREEMENT City of Renton to Rainier Flight Service Inc a Washington Limited Liability Corporation 11 14c. Termination of Lease: Upon the expiration of either of the notice periods specified in Paragraphs 14.a or 14.b above, and if the event causing the default is not corrected,this lease and the term hereof, together with any and all other rights and options of Tenant herein specified, shall expire and come to an end on the day fixed in such notice, except that Tenant's obligation and liability for any unpaid rentals or other charges heretofore accrued shall remain unabated. Landlord may thereupon re-enter said premises with or without due process of law, using such force as may be necessary to remove all persons or property therefrom, and Landlord shall not be liable for damages by reason of such re-entry or forfeiture. 15. BINDING AGREEMENT: Subject to the restriction upon assignment or subletting as set forth herein, all of the terms, conditions, and provisions of this Lease shall be binding upon the parties, their successors and assigns, and in the case of a Tenant who is a natural person, his or her personal representative and heirs. 16. RIGHT OF INSPECTION. Tenant will allow Landlord, or Landlord's agent, free access at all reasonable times to the Premises for the purpose of inspection, or of making repairs, additions or alterations to the Premises, or any property owned by or under the control of Landlord. 17. CONDEMNATION: If the whole or any substantial part of the Premises shall be condemned or taken by Landlord or any county, state, or federal authority for any purpose, then the term of this lease shall cease as to the part so taken from the day the possession of that part shall be required for any purpose, and the rent shall be paid up to that date. From that day the Tenant or Landlord shall have the right to cancel this lease and declare the same null and void. At the Tenant's option, Tenant may continue in the possession of the remainder of the same under the terms herein provided, except that the rent shall be reduced in proportion to the amount of the premises taken for such public purposes. All damages awarded for such taking for any public purpose shall belong to and be the property of the Landlord, whether such damage shall be awarded as compensation for the diminution in value to the leasehold, or to the fee of the premises herein leased. Damages awarded for the taking of Tenant's improvements located on the premises shall belong to and be awarded to Tenant. 18. SURRENDER OF PREMISES: Tenant shall quit and surrender the premises at the end of the term in as good a condition as the reasonable use thereof would permit, normal wear and tear excepted. Alterations, additions or improvements which may be made by either of the parties hereto on the Premises, except movable office furniture or trade fixtures put in at the expense of Tenant, shall be and remain the property of the Landlord and shall remain on and be surrendered with the Premises as a part thereof at the termination of this lease without hindrance, molestation, or injury. Tenant shall repair at its sole expense any damage to the Premises occasioned by its use thereof, or LEASE AGREEMENT City of Renton to Rainier Flight Service Inc a Washington Limited Liability Corporation 12 by the removal of Tenant's trade fixtures, furnishings and equipment which repair shall include the patching and filling of holes and repair of structural damage. 19. INSURANCE: 19.a. Personal Property: Tenant, at its expense, shall maintain in force during the Term a policy of special form —causes of loss or all risk property insurance on all of Tenant's structures, alterations, improvements, trade fixtures, furniture and other personal property in, on or about the Premises, in an amount equal to at least their full replacement cost. Any proceeds of any such policy available to Tenant shall be used by Tenant for the restoration of Tenant's alterations, improvements and trade fixtures and the replacement of Tenant's furniture and other personal property. Any portion of such proceeds not used for such restoration shall belong to Tenant. 19.b. Liability Insurance: Tenant, at its expense, shall maintain in force during the Term the following types of insurance (or equivalents): a policy of commercial general liability insurance (including premises liability), with the following limits: $1,000,000 per occurrence, $2,000,000 annual aggregate. Landlord shall be named as an additional insured on Tenant's liability insurance solely with respect to the operations of the named insured (i.e., Tenant) and that coverage being primary and non-contributory with any other policy(ies) carried by, or available to, the Landlord. The Tenant shall provide the Landlord with written notice of any policy cancellation, within two business days of their receipt of such notice. 19.c. Insurance Policies: Insurance required hereunder shall be written by a company or companies acceptable to Landlord. Landlord reserves the right to establish and, from time-to-time, to increase minimum insurance coverage amounts. Insurance required herein shall provide coverage on an occurrence basis, not a claims-made basis. Notice of increased minimum insurance coverage amounts shall be sent to the Tenant at least ninety (90) days prior to the annual renewal date of the Tenant's insurance. Prior to possession the Tenant shall deliver to Landlord documents, in a form acceptable to Landlord, evidencing the existence and amounts of such insurance. Tenant shall, prior to the expiration of such policies, furnish Landlord with evidence of renewal of such insurance, in a form acceptable to Landlord. Tenant shall not do or permit to be done anything which shall invalidate the insurance policies referred to above. Tenant shall forthwith, upon Landlord's demand, reimburse Landlord for any additional premiums for insurance carried by Landlord attributable to any act or omission or operation of Tenant causing such increase in the cost of insurance. If Tenant shall fail to procure and maintain such insurance, then Landlord may, but shall not be required to, procure and maintain the same, and Tenant shall promptly reimburse Landlord for the premiums and other costs paid or incurred by Landlord to procure and maintain such insurance. Failure on the part of the Tenant to maintain the insurance as required shall constitute a LEASE AGREEMENT City of Renton to Rainier Flight Service Inc a Washington Limited Liability Corporation 13 material breach of the lease, upon which the Landlord may, after giving five business days notice to the Tenant to correct the breach, terminate the Lease or, at its discretion, procure or renew such insurance and pay any and all premiums in connection therewith, with any sums so expended to be repaid to the Landlord on demand. 19.d. Waiver of Subrogation: Tenant and Landlord each waives any and all rights of recovery against the other, or against the officers, employees, agents and representatives of the other, for loss of or damage to such waiving party or its property or the property of others under its control, where such loss or damage is insured against under any insurance policy in force at the time of such loss or damage. Tenant shall, upon obtaining the policies of insurance required hereunder, give notice to the insurance carriers that the foregoing mutual waiver of subrogation is contained in this Lease. 20. LIMITATION UPON LANDLORD'S LIABILITY: Landlord shall not be liable for any damage to property or persons caused by, or arising out of(a) any defect in or the maintenance or use of the Premises, or the improvements, fixtures and appurtenances of which the Premises constitutes a part; or (b) water coming from the roof, water pipes, flooding of the Cedar River or other body of water, or from any other source whatsoever, whether within or without the Premises; or (c) any act or omission of any Tenant or other occupants of the building, or their agents, servants, employees or invitees thereof. 21. INDEMNITY: Tenant covenants to defend, indemnify and save harmless Landlord against any and all claims arising from (a) the conduct and management of or from any work or thing whatsoever done in or about the Premises or the improvements or equipment thereon during the Lease term, or (b) arising from any act or negligence of the Tenant or any of its agents, contractors, patrons, customers, or employees, or invitees, or (c) arising from any accident, injury, or damage whatsoever, however caused, to any person or persons, or to the property of any person, persons, corporation or other entity occurring during the Lease term on, in, or about the Premises, and from and against all costs, attorney's fees, expenses, and liabilities incurred in or from any such claims or any action or proceeding brought against the Landlord by reason of any such claim, except such claims arising directly or indirectly out of Landlord's sole act or omission. Tenant, on notice from Landlord, shall resist or defend such action or proceeding forthwith with counsel reasonably satisfactory to, and approved by Landlord. 22. TAXES: Tenant shall be responsible for the payment of any and all taxes and assessments upon any property or use acquired under this agreement. LEASE AGREEMENT City of Renton to Rainier Flight Service Inc a Washington Limited Liability Corporation 14 23. HOLDING OVER: If, without execution of any extension or renewal of this lease Tenant should remain in possession of the premises after expiration or termination of the term of this lease, then Tenant shall be deemed to be occupying the Premises as a tenant from month-to-month. All the conditions, terms, and provisions of this lease, insofar as applicable to a month-to-month tenancy, shall likewise be applicable during such period. 24. NO WAIVER: It is further covenanted and agreed between the parties hereto that no waiver by Landlord of a breach by Tenant of any covenant, agreement, stipulation, or condition of this lease shall be construed to be a waiver of any succeeding breach of the same covenant, agreement, stipulation, or condition, or a breach of any other covenant agreement, stipulation, or condition. The acceptance by the Landlord of rent after any breach by the Tenant of any covenant or condition by Tenant to be performed or observed shall be construed to be payment for the use and occupation of the premises and shall not waive any such breach or any right of forfeiture arising therefrom. 25. NOTICES: All notices under this lease shall be in writing and delivered in person, with receipt therefor, or sent by certified mail, in the case of any notice unto Landlord, at the following address: Airport Administration Office 616 West Perimeter Road-Unit A Renton, Washington 98055 and in case of any notice unto Tenant, to the address of the Premises, or such address as may hereafter be designated by either party in writing. 26. DISCRIMINATION PROHIBITED: 26a. Discrimination Prohibited: Tenant covenants and agrees not to discriminate against any person or class of persons by reason of race, color, creed, sex or national origin in the use of any of its facilities provided for the public in the Airport. Tenant further agrees to furnish services on a fair, equal and not unjustly discriminatory basis to all users thereof, and to charge on a fair, reasonable and not unjustly discriminatory basis for each unit of service; provided that Tenant may make. reasonable and non-discriminatory discounts, rebates, or other similar types of price reductions to volume purchasers. 26b. Minority Business Enterprise Policy: It is the policy of the Department of Transportation that minority business enterprises as defined in 49 C.F.R. Part 23 shall have the maximum opportunity to participate in the performance of leases as defined in 49 C.F.R. 23.5. Consequently, this lease is subject to 49 C.F.R. Part 23, as applicable. No person shall be excluded from participation in, denied the benefits of or otherwise LEASE AGREEMENT City of Renton to Rainier Flight Service Inc a Washington Limited Liability Corporation 15 R � w 7 discriminated against in connection with the award and performance of any contract, including leases covered by 49 C.F.R. Part 23, on the grounds of race, color, national origin or sex. 26c. Application to Sub-leases: Subject to the provisions of Paragraph 13 of this Lease, Tenant agrees that it will include the above clause in all assignments of this lease or sub-leases, and cause its assignee(s) and sub-Tenant(s)to similarly include the above clause in further assignments or sub-leases of this Lease. 27. FORCE MAJEURE: In the event that either party hereto shall be delayed or hindered in or prevented from the performance of any act required hereunder by reason of strikes, lockouts, labor troubles, inability to procure materials, failure of power, restrictive governmental laws or regulations, riots, insurrections, war, or other reason of like nature not the fault of the party delayed in performing work or doing acts required under the terms of this Lease, then performance of such act shall be extended for a period equivalent to the period of such delay. The provisions of this paragraph shall not, however, operate to excuse Tenant from the prompt payment of rent, or any other payment required by the terms of this Lease, to be made by Tenant. 28. CAPTIONS: Article and paragraph captions are not a part hereof. 29. ENTIRE AGREEMENT: This Lease contains all agreements of the parties with respect to any matter mentioned herein. No prior agreement or understanding pertaining to any such matter shall be effective. This Lease may be modified in writing only, signed by the parties in interest at the time of the modification. 30. CUMULATIVE REMEDIES: No remedy or election hereunder shall be deemed exclusive, but shall wherever possible, be cumulative with all other remedies at law or in equity. 31. CORPORATE AUTHORITY: If Tenant is a corporation, each individual executing this Lease on behalf of said corporation represents and warrants that he is duly authorized to execute and deliver this Lease on behalf of said corporation in accordance with a duly adopted resolution of the Board of Directors of said corporation and in accordance with the Bylaws of said corporation, and that this Lease is binding upon said corporation in accordance with its terms. 32. TRANSFER OF PREMISES BY LANDLORD: In the event of any sale, conveyance, transfer or assignment by Landlord of its interest in the Premises, Landlord shall be relieved of all liability arising from this Lease and arising out of any act, occurrence or omission occurring after the consummation of such sale, conveyance, transfer or assignment. The Landlord's transferee shall be deemed to have assumed LEASE AGREEMENT City of Renton to Rainier Flight Service Inc a Washington Limited Liability Corporation 16 Nwe .00* and agreed to carry out all of the obligations of the Landlord under this Lease, including any obligation with respect to the return of any security deposit. LEASE AGREEMENT City of Renton to Rainier Flight Service Inc a Washington Limited Liability Corporation 17 � w 1%w ti.r TENANT: LANDLORD: CITY OF RENTON A Washington Corporation a Washi on Municip I orporation By: By: Its: r Airport Manager Date: Date: /7// LEASE AGREEMENT City of Renton to Rainier Flight Service Inc a Washington Limited Liability Corporation 18 Y 1%w llft� EXHIBIT A LEASE AGREEMENT City of Renton to Rainier Flight Service Inc a Washington Limited Liability Corporation 19 Path: P:�Cit of Renton�0 50 6\Survey\Drawl s 35066-SU V-EX-L.dwg]• Layv t1 Date: 3 4 009 8:42 M Author: JJdBrown Plotter: wh -seo- nn Moe St e: Hal/Size.atb t n co c� o m O mlOtzmO(S ciO p = rT1 rri czi (7)o G Z 0,11.99N ry o Z �? ti -7, w gv C Zx � '� so - w c�, X -zi°'�GZ3 �aU�ic,a2 -Z�i m co m j om � cn m m N ° �+ m � � ammo �z -�-� 00 mm� � o � yy LO Q o 00 G7= co N, p _n Z =� Z Ui co z t") 00 (A Oo ZC� fm TI O O �m~.i m � I tv 00 co O C Z O I m n O n C b Z \ M n> m nl ? m m w,`� m c z O y w W Z n m O U) Op n k 5' OZ J�,I N m :;E � ° r-'O I `f ,+ f rn �^ i I r I>9p,�4`•°EN �I n c/J O m Z .lam p ti yl N pm cN J'�I 1 i i C'j ml �4k135 '' .� v/ ? ! 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Ise. f V t. �P^ ° ° 'S A I � ao z i me r•er i ���a� -�-- 1 }J w ♦ >� m I I i ao u+N Try: � I '..._ �� �ooa .a 41.. C) m Z �� o� iH NH�I N m ' o s+c i 9 a —i_1 O Cn I �7 O e 6 R lS C p m Z QB con; I' t.Nolivj'w T, En I ; p�,a,o u ezz ezr. 4I' 'N 1B1 1 i 4 h,to i I SURVEYED WHP CHECKED BY: CITY OF RENTON DRAWN BY: EJV APPROVED BY.: LAST EDIT., 3124109 PLOT DATE: o3124109 DATE BY REV REVISION LEASE PARCEL 800 WHP&cilic REVISION CK CK'D APPR. EXHIBIT "A" 12100'WA90Sf,91e�o Bo9cdl,WA 96011 RENTON WA 4254514900 Fmc 425.951.4509 SCALE: PROJECT NO. DRAMNG FiLE NAME: """"'"f� '`a" 1'=100' 035066 35066—SURV—EX—L j i