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HomeMy WebLinkAboutLease..r LAG 011-85 CITY OF RENTON TO KAYNAN, INC. THIS INDENTURE OF LEASE executed In triplicate, effective as of July 15, 1985 by and between the CITY OF RENTON, a municipal corporation, hereinafter referred to as Lessor; and KAYNAN, Inc. a Washing- ton Corporation, hereinafter referred to as Lessee: I. PREMISES LEASED: Whereas Lessor has agreed to the assumption of a portion of an existing ground lease (viz: LAG 003-84 held by AERO -DYNE Leasing Corp.) together with the rental of the City -owned Building #5-01, situated on said portion of the ground lease, to -wit: See Exhibit "A" Legal Description and Exhibit "B" Lease Map attached hereto and made a part hereof as if fully set forth herein AND WHEREAS Lessor has further agreed to hereby lease and demise unto Lessee an additional followed described unimproved parcel of real estate (accepted by the Lessee in its "as -is" condition) being located within the confines of the Renton Municipal Airport, Renton, King County, Washington, subject to restrictions and reservations of record and as further set forth, to -wit: See Exhibit "C" Legal Description and Exhibit "D" Lease Map attached hereto and made a part hereof as if fully set - forth herein (Area of new ground lease "Testing Site" = 800 sq.ft.) Subject, however, to the installation by the Lessee of a fence around three sides of this Testing Site as a safety measure, such fence installa- tion to be complete within sixty (60) days of final execution of this Indenture of Lease. Alternatively, a Safety Cage shall be installed on the Test Bed Vehicle, providing a complete enclosure for the propellor, within the same 60 -day time period. Together with the privilege of Lessee to use the public portion of the airport, including runway and other public facilities provided thereon, on a non-exclusive basis, and subject to such rules and regulations as now exist or may hereafter be promulgated by the Lessor from time to time, and further subject to all such non-discriminatory charges and fees for such use as may be established from time to time by Lessor; on the terms and conditions I LAG 011-85 hereinafter set forth for a period of twenty-one (21) years commencing on the 15th day of July, 1985 and terminating on the 14th day of July, 2006 subject to the conditions, however, specified in paragraphs 17 and 18 hereinbelow. 2. RENTAL PAYMENTS: As rental for the above-described premises during said initial lease term, Lessee shall and will pay unto Lessor, a monthly ground space rental of $325.32 computed at the annual rate of $0.14 per square foot, payable promptly in advance on the Ist day of each and every month, and as further set forth in Paragraph 17 hereinbelow. As further rental, the Lessee shall and will pay unto Lessor, a monthly building rental (for Lessor's equity interest in the building) of $250.00, plus leasehold tax, payable promptly in advance on the Ist day of each and every month. The Building rental shall not be subject to adjustment as per Paragraph 17 hereinbelow during the term of this Lease or of any option periods thereafter. All such payments shall be made to the Director of Finance, Municipal Building, Renton, Washington. LATE PAYMENT CHARGES It is hereby further agreed that if such rental is not paid before the 10th of each month then there would be added a late payment charge of 5% per month from the Ist of the month. it is agreed that this late payment charge is a reasonable estimate of the increased cost to the City of the staff effort to monitor and collect on late payments as well as related City expenses due to such late payment. ATTORNEY'S FEES AND COLLECTIONS: Should it be necessary to refer this lease to any attorney for collection, litigation, or other court action involving breach or lease occupancy after termination, enforcement of any other right and duty under this lease then it is agreed that the prevail- ing party at litigation should be entitled to reasonable attorney's fees to be 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. 3. PURPOSE OF USE Above-described premises and the structures located thereon are leased to the Lessee for the purpose of developing, manufacturing, testing and marketing of an aircraft engine fuel injection system; also for aircraft storage and for miscellaneous general aviation activities. LESSEE COVENANTS that the premises shall be continuously used for 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 Lessor's written consent first having been obtained. Consent of Lessor to other types of activities will not be unreasonably withheld. No advertising matter or signs shall be at any time displayed on the leased premises or the structures thereat without the written approval of Lessor. 4. MAINTENANCE OF PREMISES The leased premises and all the improvements or structures thereon shall be used and maintained by Lessee in a neat, orderly and sanitary manner; and shall be kept well painted by the Lessee in such prevailing color scheme as may be from time to time -2- *#m✓ 'w LAG 011-85 established and required by Lessor for such Airport so that the leased premises and structures located thereon shall be kept and operated in a reasonable harmony with other structures and color schemes on said Airport. Lessee further covenants to keep and operate the leased premises and all structures, improvements, and activities in conformity with all rules, regulations and laws now or hereafter adopted by Lessor City or the Civil Aeronautics Authority or State Aeronautics Commission, or other duly constituted governmental authority, all at Lessee's cost and expense. 5. TITLE TO IMPROVEMENTS As further consideration for this Lease, it is stipulated and agreed that at the expiration of the renewed term of this Lease as provided in paragraph 1 herein contained or at any other termination of this Lease, all structures and any and all improve- ments of any character whatever installed on the leased premises shall be and become the property of the Lessor City and title thereto shall pass and revert to Lessor City at such termination, and none of such improvements now or hereafter placed on the leased premises shall be removed therefrom at any time without Lessor's written consent. The Lessor shall have the alternative, at its option, to require Lessee to remove any and all Improvements and structures from the demised premises and repair any damage caused thereby, at Lessee's expense. 6. IMPROVEMENTS Lessor shall not be called upon to make any improvements. alteration or repair of any kind upon said premises and Lessee covenants that he will not permit any waste, damage or injury to the premises or improvements, nor to allow the maintenance of any nuisance thereon, nor the use thereof for any illegal purposes or activities, nor for any purpose or operation preventing the maintenance of fire insurance on the said improvements or activities. 7. CHARGES PAID BY LESSEE Lessee 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 Lessor City, 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 Lessee 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. Lessee hereby agrees and covenants to pay unto Lessor that certain Leasehold Excise Tax as established by Chapter 61, Laws of 1765-76, 2nd EX Session (44th Legislative Session) which said tax shall be in addition to the stipulated monthly rental and 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 Lessee agrees and covenants to pay said tax or charge, when due. Such tax or charge shall be in addition to the regular monthly rentals. 8. HOLD HARMLESS Lessee covenants to indemnify and save harmless Lessor City against any and all claims arising from the conduct -3- LAG 011-85 and management of, or from any work or thing whatsoever done in or about, the demised premises or the improvements or equipment thereof during said Lease term, or arising from any act or negligence of the Lessee 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 or any person, persons or corporation occurring during said term on, in or about the leased 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 be brought against the Lessor City by reason of any such claim, Lessee, on notice from Lessor, shall resist, defend or settle such action or proceeding forthwith. 9. RISK OF DAMAGE OR LOSS It is further agreed that all personal property in said demised premises shall be at the risk of Lessee only and that Lessor or Lessor's agents shall not be liable for any damage either to personal property, sustained by Lessee or other persons, due to the buildings or said demised premises or any part or appurtenance thereof becoming out of repair. 10. LIABILITY INSURANCE Lessee shall keep in full force and effect at all times during this Lease term adequate public liability and property damage insurance, written by a company authorized to do business in the State of Washington, with limits of not less than $300,000/$500,000 and $100,000 respectively, and Lessee shall promptly furnish unto Lessor evidence of such Insurance by furnishing unto Lessor a copy of each policy of insurance or a certificate thereof evidencing such coverage. Ii. ASSIGNMENT This lease or any part hereof shall not be assigned by Lessee, or by operation of law, or otherwise, nor said premises or any part thereof sublet without the written consent of Lessor endorsed thereon; and in the event such written consent shall be so given, no other subsequent assignment, assignments or subletting, shall be made by such assignee or assignees, or sublessee, without previous consent of Lessor endorsed thereon; and in the event such written consent shall be so given, no other subsequent assignment, assignments or subletting, shall be made by such assignee or assignees, or sublessee, without previous consent of Lessor first had and obtained in writing. It is expressly agreed that if consent Is once given by the Lessor to the assignment of this Lease or any interest therein or to the subletting of the whole or any part of said leased premises, then Lessor shall not be barred from afterwards refusing to consent to any further assignment of said Lease or subletting of said leased premises. 12. CONTINGENCIES It is expressly understood and agreed that Lessor holds and operates said Airport and the demised premises under and subject to a grant and conveyance thereof to Lessor City 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 County Auditor of said King County, Washington, and recorded in Volume 2668 of Deeds, Page 386; and further that Lessor holds and operates said Airport and premises -4- wr LAG 011-85 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 stipulated and agreed that the Lessee also accepts and will hold and use this Lease and the respective demised 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 Lessor in favor of Lessee. Nothing in this Lease contained shall operate or be construed to prevent or hinder the future development, improvements or operation of said Renton Airport by Lessor, 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 said Renton Airport. 13. RIGHTS OF LESSOR ON LESSEE'S DEFAULT It is expressly understood and agreed that in case the demised 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 Lessor, the Lessee shall sell, assign or mortgage this Lease, or if default be made in the performance of any of the covenants and agreements in this Lease contained on the part of the Lessee to be kept and performed, or if Lessee shall fail to comply with any of the statutes, ordinances, rules, orders, regulations and requirements of the Federal, State and City Government, or if Lessee 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 Lessor may, if it so elects, at any time thereafter terminate this Lease and the term hereof, on giving to the Lessee ten (10) days notice in writing of the Lessor's intention so to do. Upon the expiration of said ten (10) day notice, this Lease and the term hereof together with any and all other rights and options of Lessee herein specified, shall expire and come to an end on the day fixed in such notice, except that Lessee's obligation and liability for any unpaid rentals or other charges heretofore accrued shall remain unabated. Lessor 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 chattels therefrom, and Lessor shall not be liable for damages by reason of such re-entry or forfeiture. 14. All terms, conditions and provision of this lease agreement shall be binding upon Lessee, his successors and assigns, if any. 15. CONDEMNATION If the whole or any substantial part of the premises hereby leased shall be condemned or taken by any County, State or Federal authority for any purpose, then the term of this Lease shall cease on 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, and -5- LAG 011-85 from that day the Lessee or Lessor 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 Lessor, 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. 16. NOTICES Any notice required to be given or served in accordance with the provisions of this Lease shall be sufficiently given and served if delivered in writing to a party, or if sent by registered mail, postage prepaid, to the other party's last known mailing address. 17. RENTAL RENEGOTIATION Said ground rental payments as specified in paragraph 2 hereof shall continue until the 15th day of July 1987. Effective as of said date, and every consecutive three (3) years thereafter, said rental rate as hereinabove specified shall be readjusted by and between the parties to be effective for each ensuing three (3) year period, respectively. Minimum base rental for any extended period, that is, after July 15, 1987 shall not be less than the aforespecifled rental of $325.32 per month for ground space. If, however, the parties are unable to agree upon such adjusted rental for the ensuing three (3) year period, within thirty (30) days prior to the commencement of each such consecutive three (3) year period, then the parties shall submit the matter of rentals for such ensuing three (3) year period to arbitration. Lessee shall select one arbitrator and Lessor likewise select one and the two so chosen, if unable to agree within a period of thirty (30) days after such appointment, shall select a third one and the decision of the majority of such arbitrators shall be final and binding upon the parties hereto. The arbitrators shall be experienced real estate appraisers and be knowledgeable in the field of comparable rentals and use any change in economic conditions from the preceding rental period. Each party shall pay for and be responsible for the fees and costs charged by the arbitrator selected by him; and the fee of the third arbitrator, if any, shall be shared equally between them. Leasehold improvements made by the Lessee shall not be considered as part of the leased premises for the purpose of future adjustments or readjustments of the aforesaid rental rates. The arbitrator shall make the decision in writing, within sixty (60) days after their appointment, unless the time is extended by the agreement of both parties. The readjusted rental in each case, whether determined by arbitration or by agreement of the parties themselves, shall be effective as of the commencement of each such three (3) year rental terms. 18. SURRENDER OF PREMISES Lessee shall quit and surrender the premises at the end of the term in as good a condition as the reasonable use thereof would permit and shall not make any alterations, additions or improvements to the premises without the prior written consent of the Lessor; all alterations, additions or improvements which may be made by moo, ,ftw LAG 011-85 either of the parties hereto on the premises, except movable office furniture or trade fixtures, put in at the expense of Lessee, shall be and remain the property of the Lessor 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. 19. FIRE INSURANCE Lessee further agrees in addition to the Insurance requirements herein set forth, to take out and keep in full force and effect during the full term of this Lease, or any extension or renewal thereof, a policy or policies of fire insurance, together with extended coverage, in standard form, in a company or companies acceptable to and approved by Lessor and in an amount at least equal to the replacement cost of such improvements; such policy or policies shall name the Lessor as an additional insured as its interest may appear, and true copies of such policy or policies or a certificate of insurance evidencing such coverage shall be promptly furnished unto Lessor at all times. Such policy shall not be canceled or voided unless at least ten (10) days' written notice prior thereto has been furnished unto Lessor. 20. HOLDING OVER If, without execution of any extension or renewal, Lessee should remain in possession of the premises after expiration or termination of the terms of this Lease, then Lessee shall be deemed to be occupying said 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. 21. WAIVER OR BREACH It is further covenanted and agreed between the parties hereto that no waiver by Lessor of a breach by Lessee 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; also that all covenants, conditions, and agreements herein contained shall extend to and be binding on the heirs, executors, administrators, successors and assigns of the parties hereto. The acceptance by the Lessor of rent after any breach by the Lessee of any covenant or condition by Lessee to be performed or observed shall be construed to be payment for the use and occupation of the demised premises and shall not waive any such breach or any right of forfeiture arising therefrom. 22. NOTICES Al notices under this Lease shall be in writing and delivered in person or sent by certified or registered mail unto Lessor at the following address, to -wit: Airport Director Renton Municipal Building Renton, Washington 98055 and in case of any notice unto Lessee, then to the premises leased hereunder, or such address as may hereafter be designated by either party in writing. -7- swe `1W LAG 011-85 23. OPTION TO RENEW In the event that Lessee has fully and faithfully complied with all the terms and conditions of this Lease Agreement, then in such event Lessor grants unto Lessee the right and option to renew or extend this Lease for a further term of ten (10) years. The rental for each five (5) year period shall be ascertained as set forth in paragraph 17. Notice of the exercise of such option shall be given by Lessee unto Lessor at least ninety days prior to the expiration of the original term of this Lease, which notice must be in writing; and it is expressly agreed by and between the parties hereto that time is of the essence in the giving of said notice. 24. NON-DISCRIMINATION Lessee covenants and agrees not to discriminate against any person or class of persons by reason of race, color, creed or national origin in the use of any of its facilities provided for the public in the Airport. Lessee further agrees to furnish services on a fair, equal and not unjustly discriminatory basis to all users thereof, and to charge fair, reasonable and not unjustly discriminatory basis for each unit of service, provided that Lessee may make reasonable and non-discriminatory discounts, rebates or other similar types of price reductions to volume purchasers. LESSEE S L l c e P✓Yt Approved as to legal form: . y. CIt.Attorney _..._ CITY OF RENTON, a Municipal Corporation nn By% . �0't UVOIN— Ma4or By��16-�� City Clerk LESSOR *ew LAG 011-85 STATE OF WASHINGTON ) ss COUNTY OF KING ) This is to certify that on this day of before me, the undersigned Notary Public, personally appeared a&4, and ffi4 to me known to be the duly qualified and acting Mayor and City Clerk respectively, of the City of Renton, Washington, and acknowledged that they executed the above and foregoing instrument for the City of Renton as the free and voluntary act and deed of said City for the uses and purposes therein set forth, and upon oath stated that such execution of said instrument by them is duly and regularly authorized and that the seal attached thereto is the corporate seal of the City of Renton. Given under my hand and official seal this_ day of 44Z. 19-as� Notary u c in and for the State of Washington, residing at Renton CM STATE OF WASHINGTON) )ss COUNTY OF KING ) LAG 011-85 THIS is to certify that on this -':�P day of 19 before me, the undersigned Notary Public. aersonall aoDeared and to me known to be thet'4/�l�f�/�''7%' and acknowled ed to me tha- executed the foregoing instrument for said- as its free and voluntary act and deed, for uses and purposes therein stated, and upon oath stated that such execution of said instrument bye -is duly and regularly authorized. GIVEN under my hand an official seal the date last above stated. Z' Notary Pub/c in and for the State of Washington residing -at 02 EXHIBIT "A" FOR LAG -011-85 KAYNAN, INC. That Portion of the Northeast Quarter of Section 18, Township 23 North, Range 5 East, W.M., in King County, Washington: Beginning at the intersection of the centerline of Shattuck Avenue North with the centerline of Airport Way North, said point of inter- section lying N.87°30'17"W a distance of 862.23 feet from the center- line intersection of Logan Avenue N. and Airport Way N.; Thence N.02°29'43"E along the northerly extension of the centerline of Shattuck Avenue North a distance of 275.00 feet; Thence S87°30'17"E a distance of 114.37 feet; Thence S02°29'43"W a distance of 55.00 feet to the True Point of Be- ginning; Thence S87°30'17"E a distance of 254.30 feet; Thence S02°02'27"W a distance of 145.12 feet; Thence N87°30'17"W a distance of 143.86 feet; Thence NO2°29'43"E a distance of 32.33 feet; Thence N42°11'53"W a distance of 158.66 feet to the True Point of Be- ginning. (Containing an area of 27,085 square feet) [z€�a 0 cl-o ILL 1fr Z OC) w z 3 4a mn \ n 4y I o� LU7 [z€�a 0 cl-o ILL 1fr Z OC) w z 3 \ n 4y I } cn -� cn — co m Li tit i U) Sy - rc7 N uar W ^ c � .i S$• ,, CJ'. N ._ LD LU f l E p on WO - 00 v Lij 7 N:� wu is C. i 3 L fc � = i c �f t Ix n low -40 EXHIBIT NV FOR LAG -011-85 KAYAN, INC. Beginning at the intersection of the centerlines of Rainier Avenue North and Airport Way North; thence along the centerline of Airport Way North S87°30'17"E a distance of 744.03 feet to a point located on the center- line of Renton Airport runway; Thence along said runway centerline N4°49'43"W a distance of 294.74 feet to a point referred to as Sta. 0+00; Thence N4°49'43"W a distance of 3,700 feet; Thence N85°10'17"E a distance of 325 feet; Thence N4°49'43"N a distance of 71.39; Thence N13°01'35"W a distance of 10.88 feet; Thence N76020'25"E a distance of 24.00 feet to the true point of begin- ning; Thence N13°01'35"W a distance of 40.00 feet; Thence N76°58'25"E a distance of 20.00 feet; Thence S13°01'35"E a distance of 40.00 feet; Thence S76°58'25"W a distance of 20.00 feet to the true point of begin- ning (Containing an area of 800.00 square feet) 7-12-85 C:l tn X w!'T�z Y 0 O; f„ u Z p W ` IL p O z Z W I- � '� 9 �- o (L a U — Z Z Q 2 Z Q p Y z w o -IZ o u • < = 4 G � Y I u a �o or. 15 3 ul Q N to til Q J -0 a a oto Z Z 7 m Z O CD �'10 0 W w N - 3 -0-Lo O M O O d :o O tO O O rn o 0-cr Z N F zZ LO OD O I a NIL Z n z =_ N W d 01w J jr Z Q LL J w Z to � a 2 U- m W Lo d a w a 0 uj ,5 Z£ L) Y LO OD O I a LAG 011-85 ADDENDUM #01-88 LEASE AGREEMENT CITY OF RENTON TO KAYNAN, INC. THIS INDENTURE OF LEASE, executed in triplicate, effective as of JANUARY 1, 1988 by and between the CITY OF RENTON, a municipal corporation, hereinafter referred to as Lessor; and, KAYNAN, INCORPORATED, a Washington Corporation, hereinafter referred to as Lessee: WITNESSETH 1. RENTAL RENEGOTIATION WHEREAS the Lessor has established a common renegotiation date for all ground leases, specifically June 1, 1990, and WHEREAS it is necessary for individual lease dates to be revised to conform with that common date, THEREFORE IT IS HEREBY AGREED AND COVENANTED BY AND BETWEEN THE PARTIES AS FOLLOWS: Lessor does hereby revise the Rental Renegotiation effective date to JUNE 1, 1990. 2. APPLICABILITY OF ORIGINAL LEASE All other terms, conditions, and provisions of Lease Agreement LAG 011-85, dated July 15 1985 and supplements thereto, unless specifically modified and amended by this agreement and upon becoming effective, shall remain in full force and effect KAYNAN, INCORPORATED, a W W ington Coporation - - LESSEE APPROVED AS TO LEGAL FORM: do*-,- 0 C -)If -4 City orne (7 CITY OF RENTON, a Municipal Corporation Ma or City Clerk LESSOR ' vmw *s' STATE OF WASHINGTON) )ss COUNTY OF KING ) THIS is to certify that on this 05th day of January 19 88 before me, the undersigned Notary Public, personally appeared Martin D. Ellison and to me known to be the President of Kaynan, Inc. and he acknowledged to me that he executed the foregoing instrument for said corporation as its free and voluntary act and deed, for uses and purposes therein stated, and upon oath stated that such execution of said instrument by him is duly and regularly authorized. GIVEN under my hand an official seal the date last above stated. Notary Public in and for the Sia `e of Washington, residing a- O,ill '*awl NV101 STATE OF WASHINGTON ) ) ss COUNTY OF KING ) Thi s i s to certi fy that on thi s lsS° day ofJZvn cLat-q, ,88 before me, the undersigned Notary Public, personally appeared ,,earl Uy mer and Marti he, )�E-. &)ior to me known to be the duly qualified and acting Mayor and City Clerk respectively, of the City of Renton, Washington, and acknowledged that they executed the above and foregoing instrument for the City of Renton as the free and voluntary act and deed of said City for the uses and purposes therein set forth, and upon oath stated that such execution of said instrument by them is duly and regularly authorized and that the seal attached thereto is the corporate seal of the City of Renton. Given under my hand and official seal this IS74'r` day of Di�Mu,n , 1968 Notary Public in and for the State of Washington, residing at K-iyq gn LAG 011-85 Addendum #02-98 ADDENDUM TO LEASE AGREEMENT (City of Renton to Kaynan, Inc.) THIS ADDENDUM to Lease Agreement LAG 011-85 is effective as of the date of executioli by the City of Renton, as indicated on the last page of this addendum. RECITALS: WHEREAS, during July 1997, new land lease rates had been established by arbitration, and WHEREAS, the land rental rate for the approximately 27,885 square feet of land area leased by Kaynan, Inc.. was determined to be $0.27 per square foot per year, and shall continue until June 1, 1999, and WHEREAS, as of June 1, 1999, said rental rate shall be readjusted by and between the parties to be effective for the ensuing three (3) year period of the lease, and WHEREAS, both parties desire to make periodic adjustments to the land rental rate based upon the Consumer Price Index - Urban, NOW, THEREFORE, IT IS HEREBY AGREED AND COVENANTED BY AND BETWEEN THE CITY OF RENTON AND KAYNAN, INC., AS FOLLOWS: WITNESSETH: 1. The Lessor and Lessee do hereby agree to a land rental rate of Twenty seven Cents ($0.27) per square foot per year. 2. Lessor and Lessee do hereby agree that the annual rate of Twenty Seven Cents ($0.27) per square foot per year shall remain in effect until June 1, 1999, and effective as of that date the rental rate shall automatically be readjusted by and between the parties as specified in paragraph 17 of the lease, utilizing the increase of the Consumer Price Index, and for each three (3) year period thereafter. Minimum base rental for any extended period, shall not be less than the current annual rental of $7,528.95. 3. Lessor and Lessee do hereby further agree that the Consumer Price Index information to be used for rental adjustments shall be the Consumer Price Index - Urban (CPI -U) then in effect for all urban consumers, as published by the US Department of Labor for the Seattle -Tacoma Metropolitan Area. 4. Lessor and Lessee do hereby further agree that at least thirty (30) days prior to the Rental Adjustment Date either party shall, if they desire to adjust the base land rental rate for the ensuing three (3) year period by a means other than the Consumer Price Index LEASE AGREEMENT 011-85 City of Renton to Kaynan, Inc. M LAG 011-85 Addendum #02-98 - Urban, provide to the other party a written request for readjustment of the rental rate pursuant to RCW 14.08.120(5). 5. All other terms and conditions of the original Lease Agreement shall remain in full force and effect. KAYNAN, INC. a Washington Corporation -1-2 Pr sident Approved as to legal form City Attorney CITY OF RENTON a Municipal Corporation Mayor Jesse Tanner City Clerl M ilyn J. Petersen LEASE AGREEMENT 011-85 City of Renton to Kaynan, Inc. ` L M Return Address: City Clerk's Office City of Renton 1055 S. Grady Way Renton WA 98055 Please print or type information M 1999090100156, OP901GOE11@011 OF 004 DocumentTitle(s): LAG -85-011, Adden. #3-99 Addendum to Lease Agreement Between The City of Renton and Kaynan Corporati Reference Number(s) of Documents assigned or released: [on page of document(s)] Grantor(s) (Last name first, then first name and initials): 1. City of Renton 2. 3. 4. ❑ Additional names on page of document Grantee(s) (Last name first, then first name and initials): 1. Kaynan Corporation 2. 3. 4. ❑ Additional names on page of document Legal Description (abbreviated: i.e. lot, block, plat or section, township, range): Northeast Quarter of Section 18, Township 23 North, Range 5 East, W.M., in King County, Washington. ❑ Additional legal is on page of document Assessor's Property Tax Parcel/Account Number: ❑ Additional legal is on page of document The Auditor/Recorder will rely on the information provided on the form. The staff will not read the document to verify the accuracy or completeness of the indexing information provided herein. 1 on LAG 011-85 Addendum #03-99 (City of Renton to Kaynan Corporation) THIS ADDENDUM to Lease Agreement LAG 011-85 is effective as of the date of execution by the City of Renton, as indicated on the last page of this addendum. RECITALS: WHEREAS, during July 1997, the land rental rate for the approximately 27,885 square feet of land area leased by Kaynan Corporation was established at $0.27 per square foot per year, such rate to continue until June 1, 1999, and WHEREAS, both parties agreed to make adjustments to the land rental rate based upon the Consumer Price Index - Urban, for three-year periods commencing June 1, 1999, and WHEREAS, the Consumer Price Index - Urban, Seattle -Tacoma area, for the first half- year of 1996 was 155.6, and WHEREAS, the Consumer Price Index - Urban, Seattle -Tacoma area, currently in effect for the first half-year of 1999 is 168.9. NOW, THEREFORE, IT IS HEREBY AGREED AND COVENANTED BY AND BETWEEN THE CITY OF RENTON AND KAYNAN CORPORATION, AS FOLLOWS: WITNESSETH: 1. The Lessor and Lessee do hereby agree that the increase of the CPI -U from June 1, 1996 to June 1, 1999 is calculated as 168.9-155.6=13.300/155.6=0.0855 or 8.55%, and 2. Lessor and Lessee do hereby agree that the 8.55% increase results in a per -square - foot rent increase from $0.270 to $0.2931, an annual rent increase from $7,528.95 to $8,173.09 for the approximately 27,885 square feet of land area leased by Kaynan Corporation, and 3. Lessor and Lessee do hereby agree that the annual rate of Twenty Nine and 31/100 Cents ($0.2931) per square foot per year shall remain in effect until June 1, 2002, and effective as of June 1, 2002 the rental rate shall automatically be readjusted by and between the parties utilizing the increase of the Consumer Price Index, for the three-year period thereafter. Minimum base rental for any extended period, that is, after June 1, 2002, shall not be less than the annual rental of $8,173.09. rry'! 01 Z�4 LEASE AGREEMENT 0 11-8 5 1 City of Renton to Kaynan Corporation CITY CLERKS OF AG 11.00 19990901001561 PAGE 002 OF 004 09/01/1999 15:11 KING COUNTY, WA LAG 011-85 Addendum #03-99 4. Lessor and Lessee do hereby further agree that the Consumer Price Index information to be used for rental adjustments shall be the Consumer Price Index - Urban (CPI -U) then in effect for all urban consumers, as published by the US Department of Labor for the Seattle - Tacoma Metropolitan Area. 5. Lessor and Lessee do hereby further agree that at least thirty (30) days prior to the Rental Adjustment Date either party shall, if they desire to adjust the base land rental rate for the ensuing three (3) year period, provide to the other party a written request for readjustment of the rental rate pursuant to RCW 14.08.120(5). 6. All other terms and conditions of the original Lease Agreement shall remain in full force and effect. Kaynan Corporation a Washington Corporation Approved as to legal form: LEASE AGREEMENT 011-85 City of Renton to Kaynan Corporation CITY OF RENTON a Municipal Corporation ;:Mayor F r" 9- 9� Date CITY CLERKS OF AG 11.00 2 19990901001561 PAGE 003 OF 004 09/01/1999 15:11 KING COUNTY, WA r -A LAG 011-85 Addendum #03-99 STATE OF WASHINGTON) )ss. COUNTY OF KING ) This is to certify that on —Q� , before me, the undersigned Notary Public, personally appeared —T4� Y�S2X to me known to be the CW of the City of Renton, and who executed the foregoing lease and acknowledged tb me that they signed and sealed the same as their free and voluntary act and deed, for the uses and purposes therein mentioned. (Seal or stamp) Notary Public in and for the State of Washington, residing at My commission expires $= Zcl- 2AW's STATE OF WASHINGTON) )ss. COUNTY OF ) This is to certify that on:5- ,/ a 6Z99' , before me, the undersigned Notary Public, personally appeared t (u,- f,'„ 15. L j/,'s ori 'to me known to be the Sec Y, r fa r 14 Ty- -e n t L r & r , and who executed the foregoing lease and acknowledged tcYme that they signed and sealed the same as their free and voluntary act and deed, for the uses and purposes therein mentioned. (Seal or stam0q11111111,, O :off z v'•� N07ARy F`�:2" PUB L\C+ pit 4PoF WA 3®` `�� �unnn� LEASE AGREEMENT 011-85 City of Renton to Kaynan Corporation Notary Public in and for the ate of Washington, residing at k,'nn My commission expires 0 2 CITY CLERKS OF AG 11.00 19990901001561 PAGE 004 OF 004 09/01/1999 15:11 KING COUNTY, WA CM M LAG 011-85 Addendum #03-99 1 U-39I)IIJO a. I-- - ►�_�_ , (City of Renton to Kaynan Corporation) THIS ADDENDUM to Lease Agreement LAG 011-85 is effective as of the date of execution by the City of Renton, as indicated on the last page of this addendum. RECITALS: WHEREAS, during July 1997, the land rental rate for the approximately 27,885 square feet of land area leased by Kaynan Corporation was established at $0.27 per square foot per year, such rate to continue until June 1, 1999, and WHEREAS, both parties agreed to make adjustments to the land rental rate based upon the Consumer Price Index - Urban, for three-year periods commencing June 1, 1999, and WHEREAS, the Consumer Price Index - Urban, Seattle -Tacoma area, for the first half- year of 1996 was 155.6, and WHEREAS, the Consumer Price Index - Urban, Seattle -Tacoma area, currently in effect for the first half-year of 1999 is 168.9. NOW, THEREFORE, IT IS HEREBY AGREED AND COVENANTED BY AND BETWEEN THE CITY OF RENTON AND KAYNAN CORPORATION, AS FOLLOWS: WITNESSETH: 1. The Lessor and Lessee do hereby agree that the increase of the CPI -U from June 1, 1996 to June 1, 1999 is calculated as 168.9-155.6=13.300/155.6=0.0855 or 8.55%, and 2. Lessor and Lessee do hereby agree that the 8.55% increase results in a per -square - foot rent increase from $0.270 to $0.2931, an annual rent increase from $7,528.95 to $8,173.09 for the approximately 27,885 square feet of land area leased by Kaynan Corporation, and 3. Lessor and Lessee do hereby agree that the annual rate of Twenty Nine and 31/100 Cents ($0.2931) per square foot per year shall remain in effect until June 1, 2002, and effective as of June 1, 2002 the rental rate shall automatically be readjusted by and between the parties utilizing the increase of the Consumer Price Index, for the three-year period thereafter. Minimum base rental for any extended period, that is, after June 1, 2002, shall not be less than the annual rental of $8,173.09. LEASE AGREEMENT 0 11-8 5 OR 67,, �P City of Renton to Kaynan Corporation M cm LAG 011-85 Addendum #03-99 4. Lessor and Lessee do hereby further agree that the Consumer Price Index information to be used for rental adjustments shall be the Consumer Price Index - Urban (CPI -U) then in effect for all urban consumers, as published by the US Department of Labor for the Seattle - Tacoma Metropolitan Area. 5. Lessor and Lessee do hereby further agree that at least thirty (30) days prior to the Rental Adjustment Date either party shall, if they desire to adjust the base land rental rate for the ensuing three (3) year period, provide to the other party a written request for readjustment of the rental rate pursuant to RCW 14.08.120(5). 6. All other terms and conditions of the original Lease Agreement shall remain in full force and effect. Kaynan Corporation a Washington Corporation Approved as to legal form: LEASE AGREEMENT 011-85 City of Renton to Kaynan Corporation CITY OF RENTON a Municipal Corporation ayor City Cle �r f- y- f� Date In STATE OF WASHINGTON) )ss. COUNTY OF KING ) 6-7J LAG 011-85 Addendum #03-99 This is to certify that on ot-Oko , before me, the undersigned Notary Public, personally appeared to me known to be the cy of the City of Renton, and who executed the foregoing lease and acknowledged to me hat they signed and sealed the same as their free and voluntary act and deed, for the uses and purposes therein mentioned. (Seal or stamp) 46UM0% Notary Public in and for the S ate of Washington, residing at_rz!?.� My commission expires Y. DL-C�j- -IA50 3 STATE OF WASHINGTON) )ss. COUNTY OF ) This is to certify that on 6- a s Z Q y , before me, the undersigned Notary Public, personally appeared 15. to me known to be the Sec Ye to r 1j Tr,pe, c..- r �& r , and who executed the foregoing lease and acknowledged tMrne' that they signed and sealed the same as their free and voluntary act and deed, for the uses and purposes therein mentioned. (Seal o S�O�� gSl01V•t• �'��''i —� Notary Public in and for the §ate - ':3n`Ic 7 ��?: of Washington, residing at ,' Co, N •y % '• 9 � My commission expires WASNtG�`� LEASE AGREEMENT 011-85 City of Renton to Kaynan Corporation F .t ti M Return Address: City Clerk's Office City of Renton 1055 S. Grady Way Renton WA 98055 Please print or type information 9M irr'rN�rrr�� wz.�:w Document Title(s): LAG -85-011, Adden. //4-99 Addendum to Lease Agreement Between The City of Renton and Kaynan Corporati Reference Number(s) of Documents assigned or released: [on page of document(s)] Grantor(s) (Last name first, then first name and initials): 1. City of Renton 2. 3. 4. ❑ Additional names on page of document Grantee(s) (Last name first, then first name and initials): 1. Kaynan Corporation 2. 3. 4. ❑ Additional names on page of document Legal Description (abbreviated: i.e. lot, block, plat or section, township, range): Northeast quarter of Section 18, Township 23 North, Range 5 East, W.M., in King County, Washington. ❑ Additional legal is on page of document Assessor's Property Tax Parcel/Account Number: ❑ Additional legal is on page of document The Auditor/Recorder will rely on the information provided on the form. The staff will not read the document to verify the accuracy or completeness of the indexing information provided herein. I In E5 LAG 011-85 Addendum #04-99 ADDENDUM TO LEASE AGREEMENT (City of Renton to Kaynan Corporation) THIS ADDENDUM to Lease Agreement LAG 011-84 is effective as of the date of execution by the City of Renton, as indicated on the last page of this addendum. RECITALS: WHEREAS, the original term of the lease is for a period of twenty-one years, beginning July 15, 1985 and terminating on July 14, 2006, and WHEREAS, the Lessee has the option to renew or extend the lease for a further term of ten years, from July 15, 2006 through July 14, 2016, by giving notice of the exercise of such option at least ninety days prior to the expiration of the original term of the lease, and WHEREAS, the Lessee desires to make improvements to four buildings, located at 350, 400, 450 and 500 Airport Way, and to repair the water system supplying water to two hangar buildings, located on adjacent and contiguous property also leased by Lessee, and WHEREAS, the Lessee acknowledges that the Airport Master Plan encourages the movement of general aviation activities from the southeast corner of the airport after the year 2010, and WHEREAS, the Lessee has, in keeping with the objectives of the Airport Master Plan, submitted a written request for an extension of the lease through July 14, 2010, and WHEREAS, in the event that the City has established a timetable for or implemented the movement of general aviation activities from the southeast corner of the airport after January 1, 2010, Lessee desires to be able to further extend the lease through the date established by such timetable for vacation of the Lessee's premises, such date not to exceed July 14, 2016, and WHEREAS, if, as a result of the Lessor's plan, the Lessee is unable to occupy and utilize its leased premises in the southeast corner, the Lessee desires to be able to have the right to lease property on the west side of the airport, if available, for at least the number of years remaining between the date Lessee must vacate the property and July 14, 2010. NOW, THEREFORE, IT IS HEREBY AGREED AND COVENANTED BY AND BETWEEN THE CITY OF RENTON AND KAYNAN CORPORATION, AS FOLLOWS: LEASE AGREEMENT 011-85 r s City of Renton to Kaynan Corporation6"1„ Y p� V ` CITY CLERKS OF AG 11.00 19990901001562 PAGE 002 OF 004 09/01/1999 15:11 KING COUNTY, WA gn WITNESSETH: LAG 011-85 Addendum #04-99 1. The Lessor and Lessee do hereby agree that the lease term expiration date of July 14, 2006 is extended until July 14, 2010. 2. Lessor and Lessee do hereby agree that the Lessee has the right and option to extend the lease to July 14, 2016 or to the date after July 14, 2010 established by the Lessor for the vacation of the premises by the Lessee, whichever is less. Notice of the exercise of such option shall be given by Lessee unto Lessor not earlier than January 1, 2010 and at least ninety days prior to the expiration of the extended lease term, i.e., July 14, 2010. 3. Lessor and Lessee do hereby agree that in the event the Lessee is unable to extend its lease to July 14, 2016, for the reason cited in the preceding paragraph, then the Lessee shall have the right and option to apply the remaining years of its optional lease extension, meaning the number of years between the date after July 14, 2010 to which the Lessee's lease may be extended and July 14, 2016, to a lease of available property on the west side of the airport, if any. 4. Lessor and Lessee do hereby agree that adjustments to the land rental rate shall be based upon the Consumer Price Index - Urban for the Seattle -Tacoma Area for three year periods, as set forth in Addendum #06-98 to this lease, continuing from the date of the last rental adjustment made during the initial term of this lease, i.e., prior to June 14, 2006. 5. All other terms and conditions of the original Lease Agreement shall remain in full force and effect. Kaynan Corporation a Washington Corporation Approved as to legal form: LEASE AGREEMENT 011-85 City of Renton to Kaynan Corporation CITY OF RENTON a Municipal Corporation yor City Cle 19990901001562 PACE 09/0100 F 199915011 CITY CLERKS OF AG 11.00 KING COUNTY, WA In STATE OF WASHINGTON) )ss. COUNTY OF KING ) cm LAG 011-85 Addendum #04-99 This is to certify that on before me, the undersigned Notary Public, personally appeared . NoSS0. &v\jM (to me known to be the of the City of Renton, and who executed the foregoing lease and acknowledged to e that they signed and sealed the same as their free and voluntary act and deed, for the uses and purposes therein mentioned. (Seal or stamp) Notary Public in and for the State of Washington, residing at My commission expires 8-A-1003 STATE OF WASHINGTON) )ss. COUNTY OF 1 This is to certify that on 5"1--z s / V ems, before me, the undersigned Notary Public, personally appeared Maw 1 "i b. , to me known to be the Se Cr e �a r u /Tr I-ef s- u r e- v and who executed the foregoing lease and acknowledged to me that they signed and sealed the same as their free and voluntary act and deed, fo �%4nius�, nd purposes therein mentioned. ��� p B , rAi�ii (S:p°�` ��M •j4-r'��i 110TAgy 40 p L% Notary Public in and for the StatV l.g•ti of Washington, residing at k,'h q My commission expires B LEASE AGREEMENT 011-85 City of Renton to Kaynan Corporation CITY CLERKS OF AG 11.00 19990901001562 PAGE 004 OF 004 09/01/1999 15:11 KING COUNTY, WA En rn LAG 011-85 Addendum #04-99 ADDENDUM TO LEASE AGREEMENT (City of Renton to Kaynan Corporation) THIS ADDENDUM to Lease Agreement LAG 011-84 is effective as of the date of execution by the City of Renton, as indicated on the last page of this addendum. RECITALS: WHEREAS, the original term of the lease is for a period of twenty-one years, beginning July 15, 1985 and terminating on July 14, 2006, and WHEREAS, the Lessee has the option to renew or extend the lease for a further term of ten years, from July 15, 2006 through July 14, 2016, by giving notice of the exercise of such option at least ninety days prior to the expiration of the original term of the lease, and WHEREAS, the Lessee desires to make improvements to four buildings, located at 350, 400, 450 and 500 Airport Way, and to repair the water system supplying water to two hangar buildings, located on adjacent and contiguous property also leased by Lessee, and WHEREAS, the Lessee acknowledges that the Airport Master Plan encourages the movement of general aviation activities from the southeast corner of the airport after the year 2010, and WHEREAS, the Lessee has, in keeping with the objectives of the Airport Master Plan, submitted a written request for an extension of the lease through July 14, 2010, and WHEREAS, in the event that the City has established a timetable for or implemented the movement of general aviation activities from the southeast corner of the airport after January 1, 2010, Lessee desires to be able to further extend the lease through the date established by such timetable for vacation of the Lessee's premises, such date not to exceed July 14, 2016, and WHEREAS, if, as a result of the Lessor's plan, the Lessee is unable to occupy and utilize its leased premises in the southeast corner, the Lessee desires to be able to have the right to lease property on the west side of the airport, if available, for at least the number of years remaining between the date Lessee must vacate the property and July 14, 2010. NOW, THEREFORE, IT IS HEREBY AGREED AND COVENANTED BY AND BETWEEN THE CITY OF RENTON AND KAYNAN CORPORATION, AS FOLLOWS: LEASE AGREEMENT 011-85A City of Renton to Kaynan Corporation YX M WITNESSETH: on LAG 011-85 Addendum #04-99 1. The Lessor and Lessee do hereby agree that the lease term expiration date of July 14, 2006 is extended until July 14, 2010. 2. Lessor and Lessee do hereby agree that the Lessee has the right and option to extend the lease to July 14, 2016 or to the date after July 14, 2010 established by the Lessor for the vacation of the premises by the Lessee, whichever is less. Notice of the exercise of such option shall be given by Lessee unto Lessor not earlier than January 1, 2010 and at least ninety days prior to the expiration of the extended lease term, i.e., July 14, 2010. 3. Lessor and Lessee do hereby agree that in the event the Lessee is unable to extend its lease to July 14, 2016, for the reason cited in the preceding paragraph, then the Lessee shall have the right and option to apply the remaining years of its optional lease extension, meaning the number of years between the date after July 14, 2010 to which the Lessee's lease may be extended and July 14, 2016, to a lease of available property on the west side of the airport, if any. 4. Lessor and Lessee do hereby agree that adjustments to the land rental rate shall be based upon the Consumer Price Index - Urban for the Seattle -Tacoma Area for three year periods, as set forth in Addendum #06-98 to this lease, continuing from the date of the last rental adjustment made during the initial term of this lease, i.e., prior to June 14, 2006. 5. All other terms and conditions of the original Lease Agreement shall remain in full force and effect. Kaynan Corporation a Washington Corporation S Approved as to legal form: LEASE AGREEMENT 011-85 City of Renton to Kaynan Corporation CITY OF RENTON a Municipal Corporation i 2 En STATE OF WASHINGTON) )ss. COUNTY OF KING ) CM LAG 011-85 Addendum #04-99 This is to certify that on 'J -'A -W-1 , before me, the undersigned Notary Public, personally appeared to me known to be the Cn( of the City of Renton, and who executed the foregoing lease and acknowledged to me that they signed and sealed the same as their free and voluntary a;:t and deed, for the uses and purposes therein mentioned. (Scai or e�tarmp) Notary Public in and for the State of Washington, residing at --_ My commission expires 4-0 STATE OF WASHINGTON) )ss. COUNTY OF This is to certify that on j'/Z s ,before me, the undersigned Notary Public, personally appeared Ma ti'n D . C // i's o M , to me known to be the SP c r ? t u r u %Tr .,.m �- u r e, y- , and who executed the foregoing lease and acknowledged to me that they signed and sealed the same as their free and voluntary act and deed, f%ttjbvM sand purposes therein mentioned. ANN S S N E ,+� •T ���.• v ;'tea LEASE AGREEMENT 011-85 City of Renton to Kaynan Corporation Notary Public in and for the StatV of Washington, residing at k,'W d Ce, My commission expires B On LAG —011-85 Addendum #05-02 ADDENDUM TO LEASE AGREEMENT (City of Renton to Kaynan, Inc) THIS ADDENDUM to Lease Agreement LAG 011-85 is effective as of the date of execution by the City of Renton, as indicated on the last page of this addendum. RECITALS: WHEREAS, during June 1999, the land rental rate for the approximately 27,885 square feet of land area leased by Kaynan, Inc. was established at $0.2931 per square foot per year, which resulted in an annual rental rate of $8,173.09, and such rate was to continue until June 1, 2002, and WHEREAS, both parties desire to make periodic adjustments to the land rental rate based upon the Consumer Price Index -Urban. NOW, THEREFORE, IT IS HEREBY AGREED AND COVENANTED BY AND BETWEEN THE CITY OF RENTON AND KAYNAN, INC. AS FOLLOWS: WITNESSETH: 1. The Lessor and Lessee do hereby agree to an annual land rent of $9,135.13 for the 27,885 square feet identified in Lease Agreement LAG 011-85. 2. Lessor and Lessee do hereby agree that the annual land rent rate in Paragraph 1 shall remain in effect until June 1, 2005, and, effective that date the rental rate shall automatically be readjusted by and between the parties as specified in paragraph 17 of the Lease Agreement, using the increase of the Consumer Price Index, and for each three (3) year period thereafter. Minimum base rental for any extended period, shall not be less than the current annual rental of $9,135.13. 3. Lessor and Lessee do hereby further agree that the Consumer Price Index information to be used for rental adjustments shall be the Consumer Price Index -Urban (CPI -U) then in effect for all urban consumers, as published by the US Department of Labor for the Seattle -Tacoma Metropolitan Area. 4. Lessor and Lessee do further agree that the difference between the CPI -U of June 1, 1999 to June 1, 2002, is 11.78% (188.8-168.9=19.9/168.9=0.1178 or 11.78%). This results in an annual rate increase from $0.2931 to $0.3276 per square foot ($9,135.13/27,885 = $0.3276). 5. Lessor and Lessee do hereby further agree that at least thirty (30) days prior to the Rental Adjustment Date either party shall, if they desire to adjust the base land rental Lease Agreement 011-85 City of Renton to Kaynan, Inc. ORIV,,'k'�w CM `'0W LAG —011-85 Addendum #05-02 rate for the ensuing three (3) year period by a means other than the Consumer Price Index -Urban, provide to the other party a written request for readjustment of the rental rate pursuant to RCW 14.08.120(5). 6. All other terms and conditions of the original Lease Agreement shall remain in full force and effect. KAYNAN, INC. a Washington Corporation Lease Agreement 011-85 City of Renton to Kaynan, Inc. CITY OF RENTON a Municipal Corporation ayor, Jesse Tanner City Clerk, Bonnie Walton /a -.4 _.-1'e940'4 Date City Attorney rn LAG n1 1-R5 Addendum # 6-07 ADDENDUM TO LEASE AGREEMENT (City of Renton to Kaynan, Inc.) THIS ADDENDUM to Lease Agreement LAG 011-85 is effective as of the date of execution by the City of Renton, as indicated on the last page of this addendum. RECITALS: WHEREAS, Kaynan, Inc. (Lessee) has a Lease Agreement with the City of Renton (Lessor), LAG -011-85, executed on July 15, 1985; and WHEREAS, during June 2002, the land rental rate for approximately 27,885 square feet of land area leased by the Lessee was determined to be $0.3276 per square foot per year and continuing until June 1, 2005; and WHEREAS, on June 1, 2005, the Lessee notified the Lessor of the desire to terminate 800 square feet of leased area (Exhibit A) reducing the leased area from 27,885 square feet to 27,085 square feet; and WHEREAS, on June 1, 2005, and for the ensuing three year period, the land rental rate was adjusted using the Consumer Price Index -Urban, to a rate of $0.3385 per square foot per year for the 27,085 square feet of leased area, resulting in an annual rental amount of $9,168.27 (27,085 x $0.3385 = $9,168.27), and continuing until June 1, 2008; and WHEREAS, Section 1 of LAG 011-85 sets forth a lease term of 21 years commencing on July 15, 1985 and terminating on July 14, 2006; and WHEREAS, Section 23 of LAG 011-85 stipulates that the Lessee has the right and option to renew or extend this Lease for an additional term of 10 years; and WHEREAS, Section 23 of LAG 011-85 also stipulates that in the event that Lessee desires to exercise the option to extend the lease term, the Lessee shall give the Lessor notice at least 90 days prior to the expiration of the original term of LAG 011-85; and WHEREAS, the Lessee gave notice in a letter dated March 25, 2005 of the Lessee's intent to exercise the 10 year option to extend the lease term from July 15, 2006 to July 14, 2016. ORIGINAL Lease Agreement 011-85 City of Renton to Kaynan, Inc. rn NNW LAG 011-85 Addendum # NOW, THEREFORE, IT IS HEREBY AGREED AND COVENANTED BY AND BETWEEN THE CITY OF RENTON AND KAYNAN, INC. AS FOLLOWS: WITNESSETH: Lessor and Lessee agree that the difference between the CPI -U of April 2002 to March 16, 2005, is 3.34% (195.1 / 188.8 = 1.0334 or 3.34%). This results in an annual rate increase from $0.3276 to $0.3385 per square foot (0.3276 x 1.0334 = $0.3385), effective June 1, 2005; and 2. The Lessor and Lessee do hereby agree to an annual land rent of $9,168.27 (27,085 x 0.3385 = $9,168.27) for the 27,085 square feet identified in Lease Agreement LAG 011-85. 3. Lessor and Lessee do hereby agree that the annual land rent rate in paragraph 1 shall remain in effect until June 1, 2008, and effective as of that date the rental rate shall automatically be readjusted by and between the parties using the increase of the Consumer Price Index, and for each three year period thereafter. Minimum base rental for any extended period shall not be less than the current annual rental of $9,168.27. 4. Lessor and Lessee do hereby agree that the Consumer Price Index information to be used for rental adjustments shall be the Consumer Price Index -Urban (CPI -U) then in effect for all urban consumers, as published by the US Department of Labor for the Seattle -Tacoma Metropolitan Area. Lessor and Lessee do hereby agree that at least 30 days prior to the Rental Adjustment Date either party shall, if they desire to adjust the base land rental rate for the ensuing three year period by a means other than the Consumer Price Index -Urban, provide to the other party a written request for readjustment of the rental rate pursuant to RCW 14.08.120(5). 6. Lessor and Lessee do hereby agree that the Lessee's leased area is reduced by the 800 square foot leased area as shown in Exhibit A. 7. Lessor and Lessee do hereby agree that lease term of LAG 011-85 shall be extended from July 16, 2006 to July 15, 2016. 8. All other terms and conditions of the original Lease Agreement shall remain in full force and effect. Lease Agreement 011-85 City of Renton to Kaynan, Inc. Im KAYNAN, INC. Washington Corporation Title s"W LAG 011-85 Addendum # CITY OF RENTON a Municipal Corporation Kathy Ke ker Mayor Bonnie Walton City Clerk Date Approved as to legal form City Attorney H:\File Sys\AIR - Airport, Transportation Services Division\01 Administration\12 Real Property Management\Leases and Operating Permits\KAYNAN\LEASE\CPI Increase Add to LAG011-85.doc Lease Agreement 011-85 City of Renton to Kaynan, Inc. cm 0 i I � r1l ry v� -+ o I � m -n GZi m - I C •n I 28 m �; z � A w in b 00 O N a 24' I �a ° a n Za >n <�. _ -c rn Z D 3 -4Q = Z w ', u Z' r c M o -�+ Z N 0 325' w I;v C: z D 0 w IE LAG 011-85 Addendum # 7-08 ADDENDUM TO LEASE AGREEMENT (City of Renton to Kaynan, Inc.) THIS ADDENDUM to Lease Agreement LAG 011-85 is effective as of the date of execution by the City of Renton, as indicated on the last page of this addendum. RECITALS: WHEREAS, Kaynan, Inc. has a Lease Agreement with the City of Renton, LAG - 011 -85, executed on July 15, 1985; and WHEREAS, in Addendum 01-88, the lessor established a common renegotiation date for all ground leases to June 1, 1990; and WHEREAS, on October 6, 1998, the land rental rate for the approximately 27,885 square feet of land area leased by Kaynan, Inc. was determined to be $0.27 per square foot per year and continuing until June 1, 1999; and WHEREAS, on August 9, 1999, the land rental rate for the approximately 27,885 square feet of land area leased by Kaynan, Inc. was determined to be $0.2931 per square foot per year and continuing until June 1, 2002; and WHEREAS, on August 9, 1999, in Addendum #04-99, the lease for the approximately 27,885 square feet of land area leased by Kaynan, Inc. extended to July 14, 2010; and WHEREAS, on December 2, 2002, the land rental rate for the approximately 27,885 square feet of land area leased by Kaynan, Inc. was determined to be $0.3276 per square foot per year and continuing until June 1, 2005; and WHEREAS, on June 1, 2005, the Lessee reduced the leasing area from 27,885 square feet to 27,085 square feet; and WHEREAS, on June 1, 2005, the land rental rate for the approximately 27,085 square feet of land area leased by Kaynan, Inc. was adjusted using the Consumer Price Index — Urban, to a rate of $0.3385 per square foot per year and continuing until June 1, 2008; and WHEREAS, on March 25, 2005, the lease for the approximately 27,085 square feet of land area leased by Kaynan, Inc. was extended to July 14, 2016; and WHEREAS, in June 2007, the Airport contracted with Allen Brackett Shedd to conduct an independent market appraisal of all Airport leased areas to determine that the fair market value is $0.57 per square foot, per year for all ground leases on the Airport; and Lease Agreement 011-85 ORIGINAL City of Renton Kaynan, Inc. LAG 011-85 N%001Addendum # 7-08 WHEREAS, on February 26, 2008, the Lessee was notified that the land rental rate would be adjusted, using a means other than Consumer Price Index, per item 5 of Addendum #06-07 to LAG 011-85, and WHEREAS, on February 26, 2008, the Lessee was notified by certified letter that the fair market value for all ground leases had been set by the 2007 appraisal at a rate of $0.57 per square foot per year, at the time of renegotiation. NOW, THEREFORE, IT IS HEREBY AGREED AND COVENANTED BY AND BETWEEN THE CITY OF RENTON AND KAYNAN, INC. AS FOLLOWS: WITNESSETH: 1. Lessor and Lessee agree that the 2007 market appraisal study determined that the annual ground rate is to be increased from $0.3271 to $0.57 per square foot per year. 2. The Lessor and Lessee do hereby agree to a full increase in the rental rate from $0.3271 to $0.57 per square foot per year for the period June 1, 2008 through May 31, 2011, and an annual land rent of $15,438.45 (27,085 sq. ft. x $0.57 per foot/per year = $15,438.45) for the 27,085 square feet identified in Lease Agreement LAG 011-85. 3. Lessor and Lessee do hereby agree that the rent rate in paragraph 2 shall remain in effect until May 31, 2011, and effective as of that date, and for each three (3) year period thereafter, the rental rate shall automatically be readjusted by and between the parties using the increase of the Consumer Price Index. Minimum base rental for any extended period shall not be less than the current annual land rental of $15,438.45. 4. Lessor and Lessee do hereby further agree that the Consumer Price Index information to be used for rental adjustments shall be the Consumer Price Index -Urban (CPI -U) then in effect for all urban consumers, as published by the US Department of Labor for the Seattle -Tacoma Metropolitan Area. 5. Lessor and Lessee do hereby further agree that at least thirty (30) days prior to the Rental Adjustment Date either party shall, if they desire to adjust the base land rental rate for the ensuing three (3) year period by a means other than the Consumer Price Index -Urban, provide to the other party a written request for readjustment of the rental rate pursuant to RCW 14.08.120(5). 6. All other terms and conditions of the original Lease Agreement shall remain in full force and effect. Lease Agreement 011-85 City of Renton Kaynan, Inc. ru Kaynan, Inc. a Washington Corporation '2'�i "�'' -L-t- Title Lease Agreement 011-85 City of Renton Kaynan, Inc. LAG 011-85 Addendum # 7-08 CITY OF RENTON a Municipal Corporation Denis Law Mayor Jason A. Seth, Deputy City Clerk tolst-&g Date Appr d as to legal form City Attorney *me 14ftW LAG 011-85 Addendum # 8-11 ADDENDUM TO LEASE AGREEMENT (City of Renton to Kaynan, Inc.) THIS ADDENDUM to Lease Agreement LAG 011-85 is effective as of June 1, 2011. RECITALS: WHEREAS, Kaynan, Inc. has a Lease Agreement with the City of Renton, LAG - 011 -85, executed on July 15, 1985; and WHEREAS, on June 1, 2008, the land rental rate for the approximately 27,085 square feet of land area leased by Kaynan, Inc. was determined to be $0.57 per square foot per year and continuing until June 1, 2011; and WHEREAS, in February 2009, the Airport contracted with Allen Brackett Shedd to conduct an independent market appraisal of all Airport leased areas to determine the fair market value (hereinafter "market appraisal"). The market appraisal determined the fair market ground lease rate to be $0.62 per square foot per year for all ground leases on the Airport; and WHEREAS, pursuant to LAG 011-85 Addenda 06-07, in a letter dated March 28, 2011, Kaynan, Inc. was notified by certified letter that the lease rate would be readjusted using a means other than the Consumer Price Index -Urban; and WHEREAS, on June 1, 2011, and for the ensuing three (3) year period, the land rental rate was adjusted, using the market appraisal, to a rate of $0.62 per square foot per year for the 27,085 square feet of leased area, resulting in an annual rental amount of $16,792.70 (27,085 x $0.62) plus leasehold excise tax, and continuing until June 1, 2014. NOW, THEREFORE, IT IS HEREBY AGREED AND COVENANTED BY AND BETWEEN THE CITY OF RENTON AND KAYNAN, INC. AS FOLLOWS: WITNESSETH: 1. The Lessor and Lessee do hereby agree to an annual land rent of $16,792.70 (27,085 x $0.62) plus leasehold excise tax, for the 27,085 square feet identified in lease LAG 011-85. 2. All other terms and conditions of the original Lease Agreement and Addenda thereto, insofar as they are not inconsistent herewith, shall remain in full force and effect. ORIGINAL Lease Agreement 011-85 City of Renton to Kaynan, Inc. *401 *41W LAG 011-85 Addendum # Kaynan, Inc. CITY OF RENTON a Washington Corporation a Municipal Corporation i r Denis Law Mayor ,I �-. Title Bonnie Walton City Clerk a6 aell D to App r ed as to legal form City Attorney s e Lease Agreement 011-85 2 City of Renton to Kaynan, Inc. LAG 011-85 Adden #9-14 Amendment 9-14 ADDENDUM TO LEASE AGREEMENT (City of Renton to Kaynan, Inc.) THIS ADDENDUM to Lease Agreement LAG 011-85 is effective as of June 1, 2014. RECITALS: WHEREAS, Kaynan, Inc. has a Lease Agreement with the City of Renton, LAG 011- 85, executed on July 1, 1985; and WHEREAS, Kaynan Inc. leases approximately 27,085 square feet of ground space, and a City -owned building, referred to as #5-01, situated on the ground lease space; and WHEREAS, on June 1, 2011, the land rental rate for the approximately 27,085 square feet of land area leased by Kaynan, Inc. was determined to be $0.62 per square foot per year and continuing until June 1, 2014; and WHEREAS, on April 1, 2014, the Airport contracted with Valbridge Property Advisors to conduct an independent market appraisal of all Airport ground leased areas to determine the fair market value (hereinafter "market appraisal'). The market appraisal determined the fair market ground lease rate to be $0.75 per square foot per year for all ground leases on the Airport; and WHEREAS, pursuant to LAG 011-85, Addendum 7-08 paragraph 5, in a letter dated April 4, 2014, Lessee was notified by certified letter that the lease rate would be readjusted using a means other than the Consumer Price Index -Urban; and WHEREAS, on June 1, 2014, and for the ensuing three (3) year period, the land rental rate was adjusted, using the market appraisal, to a rate of $0.75 per square foot per year for the 27,085 square feet of leased area, resulting in an annual rental amount of $20,313.75 (27,085 x $0.75), and continuing until August 31, 2016. NOW, THEREFORE, IT IS HEREBY AGREED AND COVENANTED BY AND BETWEEN THE CITY OF RENTON AND KAYNAN, INC. AS FOLLOWS: ORIGINAL Lease Agreement LAG 011-85 City of Renton to Kaynan, Inc. LAG 011-85 Amendment 9-14 WITNESSETH: 1. The Lessor and Lessee do hereby agree to amend section 2 of LAG 011-85 to provide an annual land rent of $20,313.75 (27,085 x $0.75), for the 27,085 square feet identified in lease LAG 011-85 through August 31, 2016. 2. All other terms and conditions of the original Lease Agreement and Addenda thereto, insofar as they are not inconsistent herewith, shall remain in full force and effect. KAYNAN, INC. CITY OF RENTON a Washington Corporation a Municipal Corporation Denis Law Mavor Title Jasfn A. Seth Acting City Clerk 7/2, /164 Date Approv s to legal form Sj�Zli City Attorney Lease Agreement LAG 0 11-8 5 City of Renton to Kaynan, Inc. LAG 011-85 Addendum 9-15 (supersedes Addendum 9-14) ADDENDUM TO LEASE AGREEMENT (City of Renton to Kaynan, Inc.) THIS ADDENDUM to Lease Agreement LAG 011-85 is effective as of June 1, 2014. RECITALS: WHEREAS, Kaynan, Inc. has a Lease Agreement with the City of Renton, LAG 011- 85, executed on July 1, 1985; and WHEREAS, Kaynan Inc. leases approximately 27,085 square feet of ground space, and a City-owned building, referred to as #5-01, situated on the ground lease space; and WHEREAS, on June 1, 2011, the land rental rate for the approximately 27,085 square feet of land area leased by Kaynan, Inc. was determined to be $0.62 per square foot per year and continuing until June 1, 2014; and WHEREAS, pursuant to LAG 011-85, Addendum 7-08 paragraph 5, in a letter dated April 4, 2014, Lessee was notified by certified letter that the lease rate would be readjusted using a means other than the Consumer Price Index-Urban; and WHEREAS, effective June 1, 2014, Lessor had adjusted the land lease rate to $0.75 per square foot per year, and Lessee had paid said rental rate, pursuant to Addendum 9-14 to LAG 011-85; and WHEREAS, Lessor and Lessee desire to withdraw Addendum 9-14 to LAG 011-85 and have it superseded by this Addendum 9-15 ; and WHEREAS, on January 8, 2015, through a lease arbitration process, a new land rental rate was established at $0.7252 per square foot per year; and WHEREAS, on June 1, 2014, and for the ensuing three (3) year period, the land rental rate should be adjusted, using a lease arbitration determination, to a rate of $0.7252 per square foot per year for the 27,085 square feet of leased area, resulting in an annual rental amount of$19,642.04 (27,085 x $0.7252), and continuing until August 31, 2016; and WHEREAS, The annual difference between 27,085 SQ. FT. X $0.75 and 27,085 SQ. FT. x $0.7252 IS $671.71 ($20,313.75— 19,642.04) The monthly amount of the differential is $55.97 (671.71/ 12). The refund amount is Five Hundred Three dollars Lease Agreement LAG 011-85 ORIGINAL 1 City of Renton to Kaynan,Inc. LAG 011-85 Addendum 9-15 (supersedes Addendum 9-14) and Seventy Three cents ($503.73) (9 months x $55.97), for the period beginning June 1, 2014 and ending February 28, 2015. The refund will be deducted from the land rental amount for March 2015. NOW, THEREFORE, IT IS HEREBY AGREED AND COVENANTED BY AND BETWEEN THE CITY OF RENTON AND KAYNAN, INC. AS FOLLOWS: WITNESSETH: 1. The Lessor and Lessee do hereby agree to amend section 2 of LAG 011-85 to provide an annual land rent of$19,642.04 (27,085 x $0.7252), for the 27,085 square feet identified in lease LAG 011-85, effective June 1, 2014 through August 31, 2016. 2. The Lessor and Lessee do hereby agree to withdraw Addendum 9-14 to LAG 011-85. This Addendum 9-15 shall supersede Addendum 9-14. 3. Lessor will deduct the amount of$503.73 from Lessee's invoice for March 1, 2015 to reimburse Lessee for the overpaid rent for the period June 1, 2014 to February 28, 2015. 4. All other terms and conditions of the original Lease Agreement and Addenda thereto, insofar as they are not inconsistent herewith, shall remain in full force and effect. KAYNAN, INC. CITY OF RENTON a Washington Corporation a Municipal Corporation / f// Denis Law May% r Vyte 6, L-+ i ' i i Title Jason .eth Ci y Cl(21 L a ;+.;:1,,t,,-�,,,,. JjTo .. foa .-if "ilyific,,,, Lease Agreement LAG 011-85 Mtn 2 City of Renton to Kaynan,Inc. ,;V,` ,�� LAG 011-85 Addendum 9-15 (supersedes Addendum 9-14) Date Approv s to legal form 064040444.4.704,24016.".4%., City Attorney Lease Agreement LAG 011-85 3 City of Renton to Kaynan,Inc. LAG-85-011 , Adden �10-16 LAG 011-85 Addendum 10-16 ADDENDUM TO LEASE AGREEMENT (City of Renton to Kaynan, Inc.) THIS ADDENDUM to Lease Agreement LAG 011-85 is effective as of July 13, 2016. RECITALS: WHEREAS, Kaynan, Inc. has a Lease Agreement with the City of Renton, LAG 011- 85, executed on July 1, 1985; and WHEREAS, Section 1 of LAG 011-85 identifies the Lease term expiration date as July 14, 2006; and WHEREAS, Section 23 of LAG 011-85 identified an option to extend the initial term of the lease by an ten (10) years; and WHEREAS, at Kaynan's request, the City of Renton granted the ten (10) year Lease extension via Addendum 04-99 to LAG 011-85 on August 9, 1999; and WHEREAS, LAG 011-85 now terminates on July 14, 2016; and WHEREAS, Kaynan has requested a temporary extension their occupancy of the premises beyond July 14, 2016; and WHEREAS, the City of Renton agrees to this temporary extension of Kaynan's Lease beyond July 14, 2016. NOW,THEREFORE, IT IS HEREBY AGREED AND COVENANTED BY AND BETWEEN THE CITY OF RENTON AND KAYNAN, INC. AS FOLLOWS: WITNESSETH: 1. The Lessor and Lessee do hereby agree that the lease term expiration date of July 14, 2016, is extended until October 31, 2016. 2. All other terms and conditions of the original Lease Agreement and Addenda thereto, insofar as they are not inconsistent herewith, shall remain in full force and effect. ORlGINAL Lease Agreement LAG 011-85 1 City of Renton to Kaynan, Inc. LAG 011-85 Addendum 10-16 KAYNAN, INC. CITY OF RENTON a Washington Corporation a Municipal Corporation � De is Law Mayor �1�,� ��� . Title Jaso Seth ity Clerk .�`,��0.�,���l1111111 I I!I i I Ill lll/ulq��i ;`��� RENTO��''''o-, 7 /Z (P ���. 'L ��, ,�G� � % Date i� ��.� *� . � -- �: !';`� � � Appr d as to legal for '�r �°���Ri'=-�'4�� � Q�M�V�.r . . � City Attorney Lawrence J. Warren Lease Agreement LAG 011-85 2 City of Renton to Kaynan, Inc.