HomeMy WebLinkAboutAdden 11LAG 001-87
Addendum 11-21
ADDENDUM TO LEASE AGREEMENT
(City of Renton to Boeing Employees Flying Association Inc.)
THIS ADDENDUM No. 11 to Lease Agreement LAG 001-87 is effective January 1,
2020.
RECITALS:
WHEREAS, Boeing Employees Flying Association Inc. ("BEFA" or "Lessee") has a
lease agreement with the City of Renton ("Lessor"), LAG-001-87, executed on January 1,
1987, and as subsequently. aimended and addended (the "Lease"); and
WHEREAS, the initial term of the Lease terminated on December 31, 2019; and
WHEREAS, Paragraph 23 of the Lease provides Lessee with an option to renew as
follows: "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 three (3) year period (or partial 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;" and
WHEREAS, 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 for a further ten (10) years; and
WHEREAS, the 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 as shown on "Exhibit A to Add. 11-21"
attached hereto, but Lessee has declined at this time to reduce its premises; and
WHEREAS, pursuani:to Addendum #10-18 of the Lease, the land rental rate was
established through December 31, 2019; and
WHEREAS, pursuant to Paragraph 17 of the Lease, the land rental rate shall be
renegotiated for ensuing terms of three (3) years (unless otherwise agreed by the
t
Lease Agreement LAG 001-87, Amend. No.11-21
City of Renton to Boeing Employees Flying Association Inc.
LAG 00147
Addendum 11-21
parties), such that the renegotiated land rental rate shall commence on January 1, 2020
and continue through December 31, 2022; and
WHEREAS, in accordance with procedures under the Lease for determining the
new rent rate (which included arbitration), which procedures were delayed due to the
COVID-19 pandemic, the kind rent rate for the Premises for the effective date of January
1, 2020 was determined to. be $1.13 per square foot (with the joint use access driveway
area rate thus $0.565 per square foot); and
WHEREAS, since January 1, 2020, Lessee has been paying to Lessor $8,023.22 in
monthly rent and leasehold excise tax; and
WHEREAS, Lessor and Lessee agree that retroactive to January 1, 2020, and for
the ensuing three (3) yearperiod, the land rental rate of $1.13 per square foot per year
for 112,824 square feet of the premises, together with the land rental rate of $0.565 per
square foot per year for 6,IZ36 square feet of the premises, will result in an annual rental
amount of $131,296.96 ($127,491.12 + $3,805.84), and a monthly rental rate of ten
thousand nine hundred forty-one dollars and forty-one cents ($10,941.41) (Calculation:
$131,296.96/12), continuing until December 31, 2022;
NOW, THEREFORE, IN CONSIDERATION OF THE TERMS AND CONDITIONS
HEREIN CONTAINED AND OQR OTHER GOOD AND VALUABLE CONSIDERATION, THE
RECEIPT AND SUFFICIENCY OF WHICH IS HEREBY ACKNOWLEDGED, LESSOR AND
LESSEE AGREE TO AMEND. THE LEASE, LAG 001-87 AS AMENDED AND ADDENDED, AS
SET FORTH BELOW:
W ITN ESSETH:
1. The term of the Lease is hereby extended to terminate on December 31, 2029.
2. The Lessor and Lessee ffo hereby agree to annual land rent calculated as follows,
beginning January 1, 2020:
112,824 square feet at $1.13 per square foot per year = $127,491.12;
Plus, 6,736 square feet at $0.565 per square foot per year = $3,805.84;
Total: $131,296.96
All subject to Leasehold Excise Tax.
3. The Lessor and Lessee do hereby agree to amend Paragraph 2 of LAG 001-87 to
establish an annual land rent of $131,296.96 (and, thus, a monthly land rent of
$10,941.41), PLUS leasehold excise tax, effective January 1, 2020 and continuing
through December 31, 2022.
Lease Agreement LAG 001-87, Amend. No.11-21
City of Renton to Boeing Employees Flying Association Inc.
19
LAG 001-87
Addendum 11-21
4. 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 January 1,
2020 under this Lease amendment and (b) the amount that Lessee paid to Lessor
since January 1, 2020 and (2) leasehold excise tax on the difference.
5. All other terms and conditions of the original Lease amendments and addenda
thereto, insofar as they are not inconsistent herewith, shall remain in full force and
effect.
Boeing Employees Flying Association Inc., CITY OF RENTON
a Washington corporation- a Washington municipal corporation
`s
Printed.Nameko yr j,'7' --•Z r !": r',%l Armondo Pavone
Title: A -7""' Mayor
f�
Date:
r�e` Date: 2/3/2021
REN T04,
Attest: °D.
Jason Seth, City Clerk /�ORPORP'1' �
Approved as to form:
Approved by Leslie Clark via 1/8/2021 email
Shane Moloney, City Attorney
0
Lease Agreement LAG 001-87, Amend. No.11-21
City of Renton to Boeing Employees Flying Association Inc.
3
LAG 001-87
Addendum 11-21
Exhibit A to Add.11-21
[See next page.]
4
Lease Agreement LAG 001-87, Amend. No.11-21
City of Renton to Boeing Employees Flying Association Inc.
4
•:)ul uoi;epossy SuiAIA saaAoidw3 Buiaoe o; uo4ua8;o Al!:)
5 IZ-ti 'ON 'PuaLOV'L8-I00 9Vl luawaa.t8y Mal
TZ-LT wnpuaPPd
LB-100 9VI
0
I.
0