HomeMy WebLinkAboutLease *MOO, *4010'' LAG-14-004
LEASE AGREEMENT
City of Renton to Rainier Flight Service LLC
STANDARD GROUND LEASE FORM MONTH-TO-MONTH
THIS IS A MONTH-TO-MONTH LEASE AGREEMENT between THE CITY OF RENTON, a
Washington municipal corporation ("Lessor"), and Rainier Flight Service LLC, a Washington
Limited Liability Corporation ("Lessee").
RECITALS:
WHEREAS, Rainier Flight Service LLC, desires to lease approximately 25,200 square feet
(120' x 210') of ground space, as shown in Exhibit A; and
WHEREAS, Rainier Flight Service LLC, desires to use the property for aircraft tiedown to
support their flight school.
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: A plot of ground on the west side of the Renton Municipal
Airport located at 800 West Perimeter Road, and containing 25,200 square feet (120' X 210'),
more or less, being a portion of the real property shown in Exhibit A (Ground 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 reference, and Landlord's
standards concerning operation of public aviation service activities from the Airport;
and
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City of Renton to Rainier Flight Service LLC
a Washington Limited Liability Corporation ORIGINAL
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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 and 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 loan or grant of federal or
state funds in aid of the development, improvement, or operation of the Renton Airport.
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City of Renton to Rainier Flight Service LLC
a Washington Limited Liability Corporation
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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.
4. 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 Thosuand Five
Hundred Sevety Five Dollars and Zero Cents ($1,575.00), 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 Rainier Flight Service Inc shall make all monthly rental payments to the
Landlord. All such payments shall be made to the 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 ground lease area (which the parties stipulate to be accurate)
of 25,200 square feet (120' X 210').
Rental Payment Schedule
25,200 sq. ft. @ $ 0.75/sq. ft. per year = $18,900 annual rental
$18,900 annual rental/12 months = $1,575.00 monthly rental, plus
leasehold excise tax
4b. Rental Adjustment 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: If any Rent is not received by Landlord from Tenant by the
tenth (10th) business day after such Rent is due, Tenant shall immediately pay to Landlord a
late charge equal to five percent (5%) of the amount of such Rent. Should Tenant pay said late
charge but fail to pay contemporaneously therewith all unpaid amounts of Rent, Landlord's
acceptance of this late charge shall not constitute a waiver of Tenant's default with respect to
Tenant's nonpayment nor prevent Landlord from exercising all other rights and remedies
available to Landlord under this Lease or, under law. If any check received by Landlord from
Tenant is returned unpaid for any reason, Landlord reserves the right to charge, and Tenant
agrees to pay, an additional charge up to the maximum amount allowed by law. Landlord's
acceptance of this additional charge shall not constitute a waiver of Tenant's default with
respect to Tenant's returned check nor prevent Landlord from exercising all other rights and
remedies available to Landlord under this Lease or under law. Unpaid amounts of rent, late
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City of Renton to Rainier Flight Service LLC
a Washington Limited Liability Corporation
charges, or additional charges shall bear interest at the rate of twelve (12%) percent per
annum until paid.
4d. Attorneys Fees/Collection Charges: Should it be necessary to refer this lease to an
attorney 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, 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. 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
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City of Renton to Rainier Flight Service LLC
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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.
7a. General 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:
8a. Use of Premises: The Premises are leased to the Tenant for the following described
purpose(s):
8a(l) The tiedown of aircraft, in accordance with the Airport Regulations and Minimum
Standards.
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. Signs:
8d(l) 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.
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
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City of Renton to Rainier Flight Service LLC
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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.
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
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City of Renton to Rainier Flight Service LLC
a Washington Limited Liability Corporation
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.
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,
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City of Renton to Rainier Flight Service LLC
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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
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 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.
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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 Tenant 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.
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
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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 Rainier Flight Service Inc, 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 sublet portions of the Premises for the purpose of aircraft
tiedown and float storage, only, without the prior written approval by the Landlord of this
permitted use, on a month-to-month or longer basis (but not longer than the term of this
Lease), provided that Landlord is informed on at least an annual basis, in writing, of the name
of the subTenant(s), the purpose of the sublease, the amount of the rental charged, and the
type of aircraft stored (make, model and registration number). Such information shall be
disclosed upon request by Landlord.
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 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.
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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 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.
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
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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 either cancel this lease and declare the
same null and void, or to 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 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,
LEASE AGREEMENT 12
City of Renton to Rainier Flight Service LLC
a Washington Limited Liability Corporation
Win►' **moo'
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 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
LEASE AGREEMENT 13
City of Renton to Rainier Flight Service LLC
a Washington Limited Liability Corporation
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.
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
LEASE AGREEMENT 14
City of Renton to Rainier Flight Service LLC
a Washington Limited Liability Corporation
t w
*taw *"we
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 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
LEASE AGREEMENT 15
City of Renton to Rainier Flight Service LLC
a Washington Limited Liability Corporation
i t
*%Noe v4w� LAG 14-001
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 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 16
City of Renton to Rainier Flight Service LLC
a Washington Limited Liability Corporation
**age
TENANT: LANDLORD:
Rainier Flight Service Inc THE CITY OF RENTON
a Washington corporation a Washington municipal
corporation
by e �..G'� by C
its: Airport Manager
Date: Z'vix C V/I Date:
LEASE AGREEMENT 17
City of Renton to Rainier Flight Service LLC
a Washington Limited Liability Corporation
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LEASE AGREEMENT 18
City of Renton to Rainier Flight Service LLC
a Washington Limited Liability Corporation
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