HomeMy WebLinkAboutAddendumtoLeaseAirportSafeStorageKITTITAS COUNTY
DEPARTMENT OF PUBLIC WORKS
AGENDA STAFF REPORT
AGENDA DATE: April 3, 2018
ACTION REQUESTED: Approve & Sign an Amendment to Lease with Airport
Safe Storage LLC for Airport Industrial Property.
BACKGROUND: On April 1, 2008, Airport Safe Storage LLC entered
into a lease for County land located at the Bowers
Field Airport within the Industrial Area. Airport Safe
Storage conducts a mini -storage business on
approximately 5 acres of Industrial area property.
INTERACTION:
Per RCW 36.34.180 the county is required to
renegotiate these long-term leases every 5 years. As
of March 31, 2018, this lease was up for
renegotiation.
According to Paragraph #3 of the lease "Adjustment
of Rental' the County has the right to increase rental
rates in accordance with the CPI Index "All Cities -All
Items Size Class D Under 50,000"
The current lease amount is $.065 per square foot for
both lots, increasing to $.066 per square foot.
Public Works
RECOMMENDATION: Move to Approve Board signature on an Amendment
to Lease with Airport Safe Storage LLC for two (2)
Lots located on County Airport Industrial Property at
Bowers Field.
HANDLING:
ATTACHMENTS:
LEAD STAFF:
Return 1 original to Public Works
Lease Amendment; Original Lease
Mark Cook
Public Works Director
KITTITAS COUNTY AIRPORT
DEPARTMENT OF PUBLIC WORKS
AMENDMENT TO LEASE
THIS AMENDMENT TO LEASE is made and dated this _ day of
2018, by and between Kittitas County, a municipal corporation in the State of Washington,
hereinafter referred to as the LESSOR, and AIRPORT SAFE STORAGE LLC, and hereinafter
referred to as the LESSEE.
WITNESSETH:
WHEREAS, LESSOR and LESSEE entered into a Lease on April 1, 2008, a copy of which
is attached hereto and by this reference incorporated herein; and
WHEREAS, according to Paragraph 3 "Adjustment of Rental", it states " the rental rate
shall be re -adjusted and fixed by the Board of County Commissioners every five years as required
in RCW 36.34.180";
WHEREAS, it has been agreed between LESSOR and LESSEE that the following CPI
Index will be used for future rental increases.
"CPI — All Cities -All Items Size Class D Under 50,000"
NOW, THEREFORE, IT IS HEREBY AGREED by and between the parties to a change in
rental rates and contract terms as follows:
1) "Paragraph #2 — Rent" — Rental Rates for 4/01/18 thru 3/31/23 Term.
Lot C-34 rate —108,900 sg feet
Term
Previous Rate
Per Year ($.065 per
Sq. Ft.)
Rental Rate
($.066 per Sq. Ft.)
Not Including Leasehold
Tax*
04/01/18 — 03/31/19
$ 7,078.50
$ 7,166.27
04/01/19 -03/31/20
$ 7,166.27
04/01/20 -03/31/21
$ 7,166.27
04/01/21 -03/31/22
$ 7,166.27
04/01/22 — 03/31/23
$ 7,166.27
04/01/23
Renegotiate
"The current Leasehold Excise Tax Rate is 12.84%, as determined by the State of Washington and is subject
to change.
;•.ir u�.�rt s.�r, ., ror.: qti L..,
Lot C-35 rate — 109,335.60 sq feet
Term
Previous Rate
Per Year ($.065 per
Sq. Ft.)
Rental Rate
($.066 per Sq. Ft.)
Not Including Leasehold
Tax'
04/01/18 — 03/31/19
$ 7,106.81
$7,194 ' 94
04/01/19 -03/31/20
$ 7,194.94
04/01/20 -03/31/21
$ 7,194.94
04/01/21 -03/31/22
$ 7,194.94
04/01/22 — 03/31/23
$ 7,194.94
04/01/23
Renegotiate
'The current Leasehold Excise Tax Rate is 12.84%, as determined by the State of Washington and is subject
to change.
All other terms and conditions of the aforementioned lease shall remain the same.
IN WITNESS WHEREOF, the Lessor and Lessee have signed their names and affixed
their seals the day and year first above written.
Attest:
❑ Clerk of the Board- Julie Kjorsvik
LESSOR:
BOARD OF COUNTY COMMISSIONERS
KITTITAS COUNTY. WASHINGTON
Laura Osiadacz, Chairman
Obie O'Brien, Vice -Chairman
C Deputy Clerk of the Board- Mandy Buchholz
Paul Jewell, Commissioner
LESSE
r Virport
Kim Bass -e Stor ge, LLC
KITTITASC-VNTYAIRPORT
DEPARTM. OF PUBLIC WORKS
AMENDMENT TO LEASE
THIS AMENDMENT TO LEASE is made and dated this 8t71 day of
2013, by and between Kittitas County, a municipal corporation in the State
of Washington, hereinafter referred to as the LESSOR, and AIRPORT SAFE STORAGE LLC,
and hereinafter referred to as the LESSEE.
WITNESSETH:
WHEREAS, LESSOR and LESSEE entered into a Lease on April 1, 2008, a copy of which
is attached hereto and by this reference incorporated herein; and
WHEREAS, according to Paragraph 3 "Adjustment of Rental", it states " the rental rate
shall be re -adjusted and fixed by the Board of County Commissioners every five years as required
in RCW 36.34.180";
WHEREAS, it has been agreed between LESSOR and LESSEE that the following CPI
Index will be used for future rental increases.
"CPI — All Cities -All Items Size Class D Under 50,000"
NOW, THEREFORE, IT IS HEREBY AGREED by and between the parties to a change in
rental rates and contract terms as follows:
1) "Paragraph #2 — Rent" — Rental Rates for 4/01/13 thru 3/31/18 Term.
Lot C-34 rate —108,900 sq feet
Term
Previous Rate
Per Year ($.063 per
Sq Ft
Rental Rate
($.065 per Sq Ft)
04/01/13 — 03/31/14
$ 6,860.70
$ 7,078.50
04/01/14 -03/31/15
$ 7,078.50
04/01/15 -03/31/16
$ 7,078.50
04/01/16 -03/31/17
$ 7,078.50
04/01/17 — 03/31/18
$ 7,078.50
04/01/18
Renegotiate
Airport Safe Storage LLC
Lease Adden&Ifln
FADE 1
:ITT','i P.S CCAjNTY
Lot C-35 rate —109,335.60 sq feet
CiPCfirT
Term
Previous Rate
Per Year ($.063 per
Sq Ft
Rental Rate ( $.065
per Sq Ft)
04/01/13 — 03/31/14
$ 6,888.14
$ 7,106.81
04/01/14 -03/31/15
$ 7,106.81
04/01/15 -03/31/16
$ 7,106.81
04/01/16 -03/31 /17
$ 7,106.81
04/01/17 — 03/31/18
$ 7,106.81
04/01/18
Rene otiate
All other terms and conditions of the aforementioned lease shall remain the same.
IN WITNESS WHEREOF, the Lessor and Lessee have signed their names and affixed
their seals the day and year first above written.
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Approved as to Form:
LESSOR:
BOARD OF COUNTY COMMISSIONERS
KITTITAS COUNTY, WASHINGTON
Obie O'Brien, Chair
6a��,_
Paul Jewell, Vice -Chair
Prosecuting Attorney
WSBA # J,
Gary Berndt, tommissioner
LESSEE:
Kim Bass Airport Safe Storage, LLC
.airport Safe Storage LLC
Lease xd'dendurr, PAG_-
KITTITAS COUNTI
AIRPORT
" i'''"' KITTITASCOUNTY AIRPORT
DEPARTMENT OF PUBLIC WORKS L E A S E
THIS LEASE made and dated this 1" day of April, 2008, is by and between the
COUNTY OF KITTITAS, Washington, the Lessor hereinafter referred to as the "County", and
AIRPORT SAFE STORAGE LLC the Lessee, hereinafter referred to as the "Lessee".
The County herewith agrees to let unto Lessee and Lessee herewith agrees to lease
from the County the following described real property, situated in Kittitas County, Washington,
to -wit:
AIRPORT BINDING SITE PLAN — LOT C-34 & LOT C-35
(Site Plan Attached)
Lot C-34 2.50 Acres — 108,900.00 Square Feet
Lot C-35 2.51 Acres - 109,335.60 Square Feet
This lease is made in accordance with the provisions of RCW 36.34.
1) TERGA -The term of this lease shall be for thirty-five (35) years and will commence
on the 1st day of April, 2008, and shall terminate on the last day of March, 2043.
2) RENT- Rent shall be paid in advance once every six months at $.063 per square foot for
the first year, then for each year after that at $.063 per square foot plus leasehold tax,
and fire protection shall be as follows:
April 1, 2008- September 31, 2008 $ 6,874.42
September 31, 2008 —'March 31, 2009 $ 6,874.42
April 1, 2009 - March 31, 2010 $ 13,748.84
April 1, 2010 - March 31, 2011 $ 13,748.84
April 1, 2011 - March 31, 2012 $ 13,748.84
April 1, 2012 - March 31, 2013 $ 13,748.84
TO BE NEGOTIATED
3) RENTAL HTE ADJUSTMENT- Beginning with the year April 1, 2013, the rental rate
shall be re -adjusted and fixed by the Board of County Commissioners every five
years as required in RCW 36.34.180.
(a) Beginning the fifth year, the Lessor shall have the right to readjust the rent on or
before April 15' of the fifth, tenth, fifteen, twentieth, twenty-fifth, thirtieth, and
thirty-fifth years of this lease for each following five year period; provided,
however that any increase shall NOT EXCEED THE CUMULATIVE EFFECT OF
THE CPI INDEX OVER THE PREVIOUS FIVE YEARS. It is agreed between
LESSOR and LESSEE that the following CPI Index will be used for future rental
increases.
AIRPORT SAFE STORAGE LLC
PAGE 1
KITTITAS COUNTY
AIRPORT
"CPB — AN Cities -All Items Size Class D Under 50,000"
In the event that the Lessee and the Board cannot agree upon the rentals for
said five year period, the Lessee shall submit to have the disputed rentals for the
subsequent period adjusted by arbitration. The Lessee shall pick one arbitrator
and the board one, and the two so chosen shall select a third.
4) LEASEHOLD TAX: Unless exempt from the requirement to pay leasehold taxes, the
Lessee shall pay to the County, the leasehold tax as set forth by the State of
Washington, in Chapter 61, Laws of 1976, Second Executive Session (RCW
82.29A) or as amended. The tax shall be due and payable at the same time the
rental charged herein is due and payable.
5) FIRE PROTECTION ASSESSMENT: In addition to any rental herein provided, the
Lessee shall pay a fee which shat! be in lieu of Panes for fire protection services.
The annual rate shall be based upon 4he annual fire assessment determined by
the Ittlas Valley Fire Rescue to be calculated on January 1s' of 4he current
year. The assessment shall be pro -rated monthly, due and payable concurren4ly
with the monthly lease payment.
6) MEALNTENANCE: The Lessee covenants, promises, and agrees that it will perform
all routine maintenance on said premises hereby demised so as to keep the
same in as good as condition as the same now exists. Damage by fire, acts of
God and reasonable wear, tear, and usage are excepted.
The Lessee further agrees that it will not commit waste, and that it will keep said
premises and grounds, including those owned by the Lessee in a safe, sanitary
and orderly condition :and in general shall comply with all the applicable
governmental rules, ordinances and regulations as may be required or imposed
by such authorities on said premises hereby demised, and shall comply with any
direction pursuant to law of any public officer or officers who shall be empowered
to enforce all local, state, and federal rules, regulations and ordinances upon the
Lessee with respect to the demised premises or the use, occupancy, or control
thereof, or the conduct of any business therein, and shall not suffer any improper
or offensive use of said premises.
The Lessee shall at all times comply with the rules and regulations relative to
noxious weeds of the Weed District in which said leased premises is located.
Lessee shall maintain the grounds in a neat and clean condition. This shall
include mowing or spraying of grass and weeds. All herbicides or other
materials used for the; control or nurturing of grass and weeds shall be used in
strict accordance with'all federal, state and local statutes, rules and regulations.
The Lessee shall have the right to install or place signs or posters anywhere on
or about the leased premises which are not in violation of law, rules or regulation
and which do not produce a hazard for the County or other Lessees or persons
at the airport. All such installations shall be approved by the Airport Manager
and shall be at the expense of the Lessee and shall be within the public liability
coverage.
The Lessee shall not construct any buildings nor alter any existing facilities
without first having the written consent of the County herein, which consent shall
not be unreasonably withheld.
AIRPORT SAFE STORAGE LLC
PAGE 2
aITTITAS COUNTY
AIRPORT
The Lessee shall abide by the guidelines set forth in the Airport Industrial Park
Master Plan (Attachment "A") in regard to Design Guidelines, Setback &
Landscape Easements, Parking, Loading & Service Areas, Outside Storage &
Equipment, Waste & Refuse, Screening, Utilities, Streets, Buildings, Sign
Standards, and Entry Way.
The County will make its best efforts contingent upon circumstances, availability
of resources and equipment, emergencies, acts of God and other obligations,
and according to its own best judgment to maintain the runways and taxiways,
including snow removal, landing and obstruction lights, beacon, tetrahedron,
roads, and water and sewer systems beyond the limits of the leased premises.
7) PURPOSE: Lessee may use the premises for the following permitted uses:
a. Light industrial use
b. To build and operate a mini -storage business.
b. Any other use for which there is express prior written consent by the County.
8) RULES AN® REGULATIONS: The Lessee agrees to comply with all the pertinent
rules and regulations of the federal, state and local governments, as well as the
rules, regulations, ordinances and the Minimum Standards for Aeronautical
Activities at the Kittitas County Airport (Bowers Field) (including, but not limited
to, the regulations of the D.O.E, F.A.A., and E.P.A., relating to agricultural aerial
spray operations and hazardous waste disposal) as are presently in effect and
may in the future be adopted. The Lessee acknowledges receipt of the Minimum
Standards for Aeronautical Activities approved by the Board of County
Commissioners.
g) ENVIRONMENTAL PROTECTION: Lessee agrees to comply with all applicable federal,
state, and local laws and regulations governing environmental pollution control in
effect on the date of execution of this lease.
10) INSPECTION: Lessee agrees that the County and its employees, and agents from the
Department of Ecology, Environmental Protection Agency, and any other
governmental agency involved in environmental protection, have the right to
make inspections anytime during normal operating hours, without notice. If it is
determined that Lessee has violated federal or state environmental control laws
or regulations, upon ten (10) days written notice, Lessee must immediately
commence and diligently pursue a permanent solution to the satisfaction of
federal, state or local' agencies, or vacate the premises (as specifically provided
for in the Default Section herein). All costs required to remedy the problem shall
be at the expense of the Lessee.
11) UTILITIES: The Lessee shall pay for all utility services supplied or available to the
premises.
12) LEASEHOLD IMPROVEMENTS: Any buildings and any future improvements (except
for fencing, surfacing,utility lines) upon the leased premises shall belong to the
Lessee and shall be removed within thirty (30) days at the expiration of the term
or any subsequent term of this lease. Failure to so remove shall cause said
improvements to become the property of the Lessor. Upon removal, the
AIRPORT SAFE STORAGE LLC
PAGE 3
KITTITAS COUNTY AIRPORT
Premises shall be left in a neat and orderly condition, without debris and shall be
graded level.
Should the Lessee desire to construct any new improvements on the above
described parcel, Lessee agrees that he shall submit to the Lessor and the
Kittitas County Building Inspector for approval, detailed plans and specifications
for all of the proposed leasehold improvements. Lessor agrees that it shall either
approve the plans and specifications as submitted, or transmit proposed
revisions to Lessee within thirty (30) calendar days of receipt of the plans and
specifications from the Lessee.
In the event that Lessor requires revisions of the original plans and
specifications, Lessee shall have thirty (30) calendar days from the date of
receipt of the proposed revisions to resubmit the plans and specifications shall
not be withheld unreasonably. No construction shall commence until written
approval is received from the Kittitas County Director of Public Works and the
Kittitas County Building Inspector.
Upon receiving final County approval of the plans and specifications, Lessee
shall engage one or more qualified individuals to begin the improvements as
proposed. Construction shall commence within sixty (60) calendar days of
Lessee's receipt of Lessor's final approval of the plans and specifications and
shall be scheduled for completion not later than one year after commencement
of improvements. It is agreed and understood that leasehold improvements
undertaken pursuant lici this provision shall become the property of Lessor upon
final completion thereof. Any work anticipated on the leased premises shall be in
accordance with the current Uniform Building, Plumbing and Electrical Codes as
administered by the Kittitas County Building Inspector's office. It will be the
Lessee's responsibility to obtain all necessary building permits and licenses to
perform any work anticipated on the leased premises.
13) C®UMTTS LIABILITY: The County shall not be liable for any damage occasioned
by failure to keep said premises in good repair and shall not be liable for any
damage done or occasioned by plumbing, water, or sewage, or the breaking,
leaking or running of any cistern, tank, water closet, water faucets, or waste
pipes in or above or on or about said buildings or premises, nor for damage
occasioned by water, snow or ice being upon or coming through the roof,
skylight, trapdoor, or otherwise, nor for any damage arising from the accident or
neglect of the Lessee or any of its members or any Lessees or occupants of
adjacent or continuous property.
14) &6!MGNMENT: The Lessee shall not assign this lease nor any portion thereof nor
sublet the premises nor any portion thereof, without the written consent of the
County, however, the County shall not unreasonably withhold such consent.
15) HOLD HAtRMLE6E: The Lessee shall indemnify and save the County, its officers and
employees harmless from all loss, damage, liability, or expense (including
expense of litigation) arising out of or resulting from the actual injury to, or death
of, any person, or from any actual loss of or damage to property belonging to
any person upon or incident to the leased premises.
16) LNSURANCE: The Lessee shall carry and maintain for the mutual benefit of the County
AIRPORT SAFE STORAGE LLC PAGE
KITTITAS COUNTY AIRPORT
and the Lessee, general public liability insurance against claims for bodily injury,
death, or property damage occurring on, in or about the premises hereinabove
described.
The limits of liability of said premises liability coverage shall be in an amount not
less than $1,000,000 — each occurrence, throughout the term of this lease. The
County reserves the right to increase the amount of coverage stated in order to
facilitate future economic growth. The County shall also be named as additional
insured. The Lessee shall provide the County a certificate of insurance as
evidence of proper insurance coverage at the time of the execution of this lease,
and upon each anniversary date of any insurance coverage. The County shall
be notified not less than thirty (30) days in advance by a written notice of
cancellation or any change in the insurance policy.
17) DESTRUCTION BY FIRE: In the event that the demised premises shall be damaged
by fire or other casualty to such an extent that the same are untenable, then this
lease shall, at the option of either the County or the Lessee, be immediately
terminated and shall be of no further force and effect; provided, however, that
the rental shall be prorated for the portion of the time that the Lessee is able to
occupy the premises 'and all unused rent paid in advance shall be returned. To
the extent of any proceeds from fire insurance provided on the demised
premises by Lessee, the same shall be used to restore the lot and remove all
debris.
18) INSPECTION: At all times during the term of this lease or any extension thereof, the
County shall have the right to enter into and upon the demised premises during
reasonable business hours for the purpose of examining and inspecting the
same and determining whether the Lessee shall have complied with all of its
obligations hereunder in respect to the care and maintenance of the premises
and all other terms and conditions thereof.
19) AIRPORT TRAFFIC: It is understood and agreed that the Lessee's use of the leased
premises shall not in any manner interfere or restrict the use of aircraft landings,
" — - --takeoffs,-or"storage of-eircraftas-presently constructed. Lessee shall comply
with all rules and regulations of the Federal Aviation Administration and the
Minimum Standards for Aeronautical Activities of Kittitas County.
20) RIGHT OF U.S. GOVERftKEHT: The County holds title to the property herein
leased, partially by virtue of a deed from the United States Government. A copy
of said deed is available for inspection at the office of the Khtas County
Department of Public Works, and is hereto made a part of this instrument as
though fully set forth herein. Lessee agrees that it will do nothing which will
cause the Lessor to be in violation of the terms of said deed. Lessee further with
agrees that it has had ample opportunity to review said deed and is aware of all
of the terms and conditions therein.
21) BANKRUPTCY: It is further agreed and understood that in case of the insolvency
or bankruptcy of the Lessee or any assignment for the benefit of creditors or the
appointment of a receiver for the Lessee, this lease shall be immediately
forfeited and shall be of no further force and effect and that the Trustee in
Bankruptcy, Receiver, or Assignee for the benefit of creditors shall not have any
rights whatsoever in the demised premises.
AIRPORT SAFE STORAGE LLC PAGE 5
KITTITAS COUNTY AIRPORT
22) AFFIRMATIVE ACTBON: The Lessee assures that it will undertake an affirmative
action program as required by 14 CFR Part 152, Subpart E., to insure that no
person shall, on the grounds of race, creed, color, national origin, or sex be
excluded from participating in any employment activities covered in 14 CFR Part
152, Subpart E. The Lessee assures that no person shall be excluded on these
grounds from participating in or receiving the services or benefits of any program
or activity covered by this subpart. The Lessee assures that it will require that its
covered sub -organizations provide assurance to the County that they similarly
will undertake affirmative action programs and that they will require assurances
from their sub -organizations, as required by 14 CFR 152, Subpart E., to the
same effect.
23) ®EFAt1LT: In the event that the Lessee shall violate this lease, or any of its
conditions or terms as herein stated, the Lessor may terminate this lease by
giving thirty (30) days written notice of the conditions or terms being violated and
if said violations are not corrected within the thirty -day period, the lease may be
canceled, and the County shall be entitled to peaceably retake possession of the
premises, provided the Lessee shall have the right to remove improvements as
herein provided.
23) H=CES: Any notice given by one party to the other in connection with this
agreement shall be in writing and shall be sent by certified or registered mail,
return receipt requested, as follows:
If to Lessor, addressed to: Kittitas County Department of Public Works,
411 N. Ruby, Ste. #1, Ellensburg, WA 98926, Attention: Airport
Manager.
2. If to Lessee, addressed to: Airport Safe Storage, LLC
P.O. Sox 720
Ellensburg, WA 98926
Notice shall be deemed to have been received on the date of receipt as shown
on the return receipt.
24)�1TT®RNEY FEES: In case Lessor shall bring suit to recover any rent due hereunder,
or for breach of any provision of this lease, or to recover possession of the
leased premises, or if Lessee shall bring any action for any relief against Lessor,
declaratory or otherwise, arising out of this lease, the prevailing party shall
recover reasonable attomey's fees which shall be determined and taxed by the
court as part of the costs of such action. All covenants, agreements, terms and
conditions contained in this lease shall apply to and be binding upon Lessor and
Lessee and their respective heirs, executors, administrators, successors and
assigns.
25) VENUE: In the event there is any litigation between lessor and Lessee arising out
of this lease, the venue for such action shall lie in Kittitas County,
notwithstanding any contrary provision of the Revised Code of Washington.
AIRPORT SAFE STORAGE LLC PAGE 6
KITTITAS COUNTY AIRPORT
IN WITNESS WHEREOF, the Lessor and Lessee have signed their names and affixed
their seals the day and year first above written.
%%"' OMMISS��
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Clerk of the Board
Approved as to form:
ros cuting Attorney
wsBA#'P(7 —
LESSOR
BOARD OF COUNTY COMMISSIONERS
OPPOSED
Mark McClain, Chair
Alan Crankovich, Vice Chair
David B. Bowen, Commissioner
LESSEE
'A
LLC
Print Nawe
Address:
P.O. Box 720
Ellensburg, WA 98926
Telephone: (509) 962-7244
Federal LD._0 — -�070-/y
AIRPORT SAFE STORAGE LLC PAGE 7