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HomeMy WebLinkAboutLease LAG 001-85 owe ,owie LEASE AGREEMENT (City of Renton to AIRMASTER , INC. ) THIS INDENTURE OF LEASE executed in triplicate, effective as of January 1 , 1985 , by and between the CITY OF RENTON, a municipal corpora- ation hereinafter referred to as Lessor ; and AIRMASTER, INC . , hereinafter referred to as Lessee : WITNESSETH: 1 . In consideration of the covenants and agreements of the Lessee hereinafter set forth, Lessor does hereby lease and demise unto Lessee the following described parcels of real estate accepted by the Lessee in their "as is" condition , being located within the confines of the Renton Airport, Renton , King County, Washington , 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, describing: basic ground lease area ; Parking Lot A; Parking Lot B and Seaplane Ramp. SUBJECT to restrictions and reservations of record and as further set forth herein ; 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 hereinafter set forth for a period of thirty-five years commencing on the 1st day of January , 1985 and termi- nating on the 31st day of December, 2019 subject to the conditions , however , specified in paragraphs 17 and 18 hereinbelow. 2 . As rental for the above-described premises during said initial lease term, Lessee shall and will pay unto Lessor a monthly rental as detailed below, payable promptly in advance on the first day of each and every month, and as further set forth in paragraph 18 hereinbelow. All such payments shall be made to the Director of Finance, Municipal Building, Renton, Washington. Initial Lease Term for Rates listed below shall be JANUARY 1, 1985 through JULY 31 1988. RENTAL PAYMENT SCHEDULE Basic Ground Lease Area = 266 ,602 .04 sq. ft. Parking Lots A and B = 1' ,924 .76 sq. ft. SUBTOTAL = 280,526 .80 sq. ft. @ $.14 sq. ft.per year $ 3 ,272.81 per month, plus Seaplane Ramp Rental = $ 142.16 per month ( i.e. 4% x subtotal) TOTAL = $ 3 ,414 .97 per month (plus Leasehold Tax) 1 LAG 001-85 1040, LATE PAYMENT CHARGE: 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 1st of the month. It is agreed that this late payment charge is a reasonable estimate of the increased costs 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 an attorney for collection litigation , or other court action involving breach of lease, occupancy after termination , or enforcement of any other right and duty under this lease then it is agreed that the prevailing 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 . Above-described premises and the structures located thereon are leased to the Lessee for the following described purposes: a) Construction and operation of Aircraft Storage facilities , together with aircraft repair and maintenance , management of leased Seaplane Ramp, fuel service, aircraft engineering and drafting. b) Aircraft manufacturing, testing, demonstration and sales subject to Hearing Examiner approval of aircraft manufacturing on a Conditional Use basis. 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 . 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 Lessee in such prevailing color scheme as may be from time to time 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. 2 LAG 001-85 yew *wit 5 . 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 improvements 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 . 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 . 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 . Lessee covenants to indemnify and save harmless Lessor City against any and all claims arising from the conduct 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 or defend such action or proceeding forthwith. 3 LAG 001-85 law .fte 9 . 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 . Lessee covenants and agrees to hold harmless and indemnify the Lessor and its agents against any liability, loss claim or damage from any cause directly or indirectly resulting from Lessee' s use or occupancy of the demised premises or of any structures, activities or business placed on or conducted thereat, by Lessee, its agents, assigns , licenses or invitees and 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. 11( a) 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 . 11(b) Recognition of Sublease. Lessor hereby acknowledges the sublease between Airmaster , Inc. , and Renton Partnership, Ltd . , relating to a portion of the leased premises upon which the hangar facility commonly referred to as the "850 Building" is located . Lessor hereby agrees that in the event of a default by Airmaster, Inc . , under this Lease Agreement, Lessor will recognize the sublease with Renton Partnership , Ltd . , as long as Renton Partnership, Ltd. , is not in default of the terms thereof and, in the event of a default under that sublease, Lessor shall give written notice thereof to Old National Bank, as mortgagee, or its successors or assigns, together with 30 days to cure said default. 12. 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 4 LAG 001-85 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 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 . 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 . 5 LAG 001-85 15 . If OC"' whole or any substantial art 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 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 . Said rental payments as specified in paragraph 2 hereof shall continue until the thirty-first day of December, 1988 . Effective as of said date, and every consecutive five (5) years thereafter, said rental rate as hereinabove specified shall be readjusted by and between the parties to be effective for each ensuing five ( 5) year period. Minimum base rental for any extended period, that is after December 31 , 1988, shall not be less than the aforespecified rental of $3,414 .97 per month. If, however, the parties are unable to agree upon such adjusted rental for the ensuing five (5) year period, within thirty ( 30) days prior to the commencement of each such consecutive five ( 5) year period, then the parties shall submit the matter of rentals for such ensuing five (5) 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 charges in King County and shall likewise give due consideration to 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 five (5) year rental terms. 17 . 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 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 6 LAG 001-85 • injury. NNW 18 . 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. 19 . 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. 20. 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. 21 . All 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. 22. 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 7 LAG 001-85 least ninety days peSier to the expiration of thelwbriginal 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. 23. 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. CITY OF RENTON, a Municipal Corporation ` 4/ , T By bahipaft0.1.CALIVO4N AIRMASTER, INC. Mayor /.q_ 9 — City Clerk LESSEE LESSOR ,Approved as to legal form: 1,/ „?. t �r +. ; tics l/l/G4 i City Attorney 8 LAG 001-85 wwr STATE OF WASHINGTON ) ss COUNTY OF KING ) This is to certify that on this 294 day of �y , )a 5S before me, the undersigned Notary Public , personally appea ed Q 64e-24(a4 Y. S HINPocH and MAXligg C MOTOC 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 o2-? day of 9,Cvn Iq $S. (1CJ4 Notary Public in and for the State of Washington, residing at Renton 9 LAG 001-85 w Now STATE OF WASHINGTON) ) ss COUNTY OF KING ) THIS is to certify that on this '( ' day of 1925 before me, the undersigned Notary Public , personally appeared 4 , 01 4 T4 1 and to me known// to be the dh and e- acknowledged to me that 4 -c' 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 by is duly and regularly authorized . GIVEN under my hand an official seal the date last above stated. 5//, Notary Public in and for the State of Washington, residing 10 v.. ` LAG 001-85 LEASE AGREEMENT EXHIBIT "A" (CITY OF RENTON TO AIRMASTER, INC. ) 1 . BASIC GROUND LEASE AREA: Beginning at a point located on the Renton Airfield Runway Centerline referred to as Station 0+00 ; thence N 4049143" W along the Runway Centerline a distance of 4 ,272.63 feet; thence S. 85°10 ' 17" W a distance of 375 feet to the True Point of Beginning ; thence S 84050 ' 50" W a distance of 373 .05 feet; thence N 2005' 50" E a distance of 109 .27 feet; thence N 0010 '25" E a distance of 90.06 feet; thence N 1031 ' 17" W a distance of 159 .48 feet; thence N 4053 '45" E a distance of 149 .26 feet; thence N 9°41 ' 17" E a distance of 89 .27 feet; thence N 57°51156" W a distance of 1 .96 feet; thence N 47°47 ' 54" W a distance of 11 .96 feet; thence N 10021102" E a distance of 20 .40 feet; thence N 11036 ' 50" E a distance of 103.95 feet; thence N 16°21 '28" E a distance of 29 .53 feet; thence N 20035 ' 40" E a distance of 39 .62 feet; thence N 21015140" E a distance of 39 .58 feet; thence N 42011 '09" E a distance of 21 . 13 feet ; thence N 85031 ' 22" E a distance of 38 . 12 feet; thence N 85020 '29" E a distance of 171 .61 feet; thence S 4049 ' 43" E a distance of 830 .54 feet to the True Point of Beginning. TOTAL AREA = 266 ,602 .04 square feet. See Map Plan of Area attached. 2. (a) Parking Lot A consisting of 7 ,200 square fee, described as follows: Beginning at a point located on the Renton Airfield Runway Centerline referred to as STA 0+00 ; thence N 4049 ' 43" W along the runway centerline a distance of 4, 443 . 19 feet; thence S 85°10 ' 17" Westerly a distance of 770 .72 to a point intersecting the centerline of Perimeter Road ; thence continuing along the centerline of Perimeter Road South 1034102" Easterly a distance of 220 .00 ft; thence S 88025158" westerly a distance of 14 .00 ft. to the true point of beginning ; thence S 88025 ' 58" westerly a distance of 45 .00 feet; thence N 1034 '02" westerly a distance of 160 .00 feet; thence N 88025 ' 38" easterly a distance of 45.00 feet; thence S 1034 '02" easterly a distance of 160.00 feet to the true point of beginning. 2 . (b) Parking Lot B consisting of 6 .724 .76 square feet described as follows : Beginning at a point located on the Renton Airfield Runway Centerline referred to as STA 0+00 ; thence N 4049 ' 43" westerly along the runway centerline a distance of 4 ,443 . 19 ft; thence S 85°10 ' 17" westerly a distance of 770 .72 feet to a point intersecting the centerline of Perimeter Road ; thence continuing along the centerline of Perimeter Road N 1034102" westerly a distance of 86 .69 ft. ; thence S 88°25 ' 58" westerly a distance of 60 .00 ft. to a point on a non tangent curve concave easterly , said curve has a radius of 874 .00 ft. and the center which bears S 88057 ' 31" easterly; thence along the arc of said curve a distance of 108 .10 feet to a point of a non tangent curve , which is the true point of beginning. TOTAL AREA OF PARKING LOTS - 13 ,924.76 square feet. 2 Nwe LAG 001-85 EXHIBIT "A" (AIRMASTER , INC. ) 3 . Will Rogers-Wiley Post Seaplane Base Ramp Area, described as follows: Beginning at the intersection of the centerline of Rainier Ave . N. and the centerline of Airport Way; thence along the said centerline of said Airport Way S. 87030 ' 17" E a distance of 744 .03 feet; thence N 4049 ' 43" W a distance of 294.74 feet to a point located on the Renton Airfield runway centerline referred to as City of Renton Survey Station 0+00 ; thence N 4049 ' 43" W along the runway centerline a distance of 5 ,262.50 feet; thence S 85010 ' 17" W a distance of 300 feet; thence N 4049 ' 43" W a distance of 143 .98 feet to the T. P.O.B. , said point also being the NE corner of the Airport Restaurant ; thence N 87020 ' 55" W along the northerly Property Line of the Airport Restaurant of 20.00 feet; thence S 87020 ' 55" E a distance of 231 . 87 ' ; thence S 4049 ' 43" E a distance of 20. 17 feet; thence N 87020 ' 55" a distance of 73.00 feet to the True Point of Beginning. TOTAL AREA - 4,463 .66 square feet 3 ,a