HomeMy WebLinkAboutAdden 6 LAG 93-004
Amendment 06-20
Amendment to Lease Agreement LAG 93-004 1
City of Renton to BHC, Inc.
AMENDMENT TO LEASE AGREEMENT
(City of Renton to BHC, Inc.)
THIS AMENDMENT to Lease Agreement LAG 93-004 is effective as of the last
date signed by the Parties below.
RECITALS:
WHEREAS, BHC, Inc. (hereinafter “Lessee”) has a Lease Agreement with the City
of Renton (hereinafter “Lessor”), LAG 93-004, executed on October 28, 1993, and
subsequently amended (LAG-93-004, together with its amendments, is hereinafter the
“Lease”); and
WHEREAS, the initial term of the Lease terminated on December 31, 2019; and
WHEREAS, Section 2.2.1 of the Lease provides Lessee with an option to renew as
follows: “Grant of Option to Extend term: 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, under the same terms and conditions provided herein, for two further periods of
five (5) years each. The first extended term, if elected, shall commence on the
expiration of the initial term hereof and terminate at midnight December 31, 2024. The
second extended term, if elected, shall commence on the expiration of the first
extended term and terminate at midnight December 31, 2029;” and
WHEREAS, in 2019, Lessee timely exercised its option to renew, and Lessor and
Lessee otherwise agreed that Lessee has met the Lease’s requirements to extend the
Lease term to midnight December 31, 2024; and
WHEREAS, the Renton Municipal Airport is undergoing a Master Plan update
which initially resulted in the Airport’s airport reference code increasing from B-II to D-
III which carries additional design standards promulgated by the Federal Aviation
Administration (“FAA”), including a wider Runway Object Free Area (“ROFA”) centered
over the Airport’s runway. Lessee acknowledges that, if imposed, the newly wider
ROFA would encroach into a portion of Lessee’s premises, but Lessee has declined to
reduce its premises to avoid such widened ROFA; and
WHEREAS, pursuant to Amendment #5-13 of the Lease, the Lease rental rate
was established at $0.62 per square foot on October 28, 2013 for the period through
October 28, 2018, subject to an increase after that date based on the Consumer Price
Index – Urban, for the Seattle-Tacoma area (“CPI-U”), the first such periodic adjustment
LAG 93-004
Amendment 06-20
Amendment to Lease Agreement LAG 93-004 2
City of Renton to BHC, Inc.
to be made as of October 28, 2018, for the ensuing five-year period ending October 28,
2023; and
WHEREAS, Lessor and Lessee agree that the difference between the CPI-U of
October 2018, as compared to October 2013, was 12.36%, and this resulted in a new
per square foot rent rate of $0.697 ($0.62 x 1.1236) and a new annual lease rate
effective October 28, 2018 of $33,998.62 for the 48,778.51-square foot premises, plus
leasehold excise tax; and
WHEREAS, as of November 9, 2020, Lessee had paid Lessor $76,369.95 in rent
since October 28, 2018, and Lessee acknowledges and agrees that it owes and will pay
to Lessor a backpayment for the difference in rent paid and rent owed since the
October 28, 2018 Lease rate adjustment date; and
WHEREAS, the Parties agree and acknowledge that the COVID-19 pandemic
which was declared an emergency in the City of Renton in March 2020 has caused
unanticipated delays in assembling a lease amendment to effectuate the extended
Lease term and the new rent rate, but Lessee and Lessor agree that neither has been
harmed by such delay so as to excuse future performance under the Lease;
NOW, THEREFORE, IN CONSIDERATION OF THE TERMS AND CONDITIONS HEREIN
CONTAINED AND FOR OTHER GOOD AND VALUABLE CONSIDERATION, THE RECEIPT
AND SUFFICIENCY OF WHICH IS HEREBY ACKNOWLEDGED, LESSOR AND LESSEE AGREE
AS SET FORTH BELOW:
WITNESSETH:
1. The extension of the Lease term to midnight December 31, 2024 is hereby ratified.
2. Effective as of October 28, 2018, Section 3.1. of LAG 93-004 is hereby amended to
read as follows:
3.1. Minimum Monthly Rent: Landlord and Tenant do hereby agree that
Tenant shall pay to Landlord a Minimum Monthly Rent in the sum of two thousand
eight hundred thirty-three dollars and twenty-one cents ($2,833.21), which
amount is one-twelfth of the Total Annual Rent of $33,998.62, PLUS leasehold
excise tax as described in Section 3.6. of lease LAG 93-004, without deduction,
offset, prior notice or demand, payable promptly in advance on the first day of
each and every month during the Term. All such payment shall be made to the City
of Renton, Attention: Fiscal Services, 1055 South Grady Way, Renton, Washington
98057. The Minimum Monthly Rent is computed as follows:
LAG 93-004
Amendment 06-20
Amendment to Lease Agreement LAG 93-004 3
City of Renton to BHC, Inc.
Rental Payment Schedule
48,778.51 square feet @ $0.697 per square foot per year= $33,998.62 annual rent
divided by 12 = $2,833.21 rental per month, PLUS leasehold excise tax.
3. Within 30 days of the date last signed below, Lessee shall pay to Lessor a lump sum
equal to (1) the difference between (a) the amount due to Lessor since October 28,
2018 under this Lease amendment and (b) the amount that Lessee paid to Lessor
since October 28, 2018 and (2) leasehold excise tax on the difference.
4. All other terms and conditions of the original Lease (including amendments
thereto), insofar as they are not inconsistent herewith, shall remain in full force and
effect.
CITY OF RENTON BHC, Inc.
a municipal corporation a Washington corporation
By: By:
Armondo Pavone Name: _______________________
Mayor Title: ________________________
Date: __________________________ Date: ________________________
Attested to by:
Jason Seth
City Clerk
Approved as to legal form:
Shane Moloney
City Attorney
December 16, 2020
Approved by Leslie Clark via 11/10/2020 email