HomeMy WebLinkAboutAddendumtoLeaseDNRKITTITAS COUNTY
DEPARTMENT OF PUBLIC WORKS
AGENDA STAFF REPORT
AGENDA DATE: June 5, 2018
ACTION REQUESTED: Approve & Sign Lease Addendum with
Department of Natural Resources for County
Property located at the Bowers Field Airport.
BACKGROUND: On May 11, 1977, the Department of Natural
Resources entered into a 5o -year lease with
Kittitas County for approximately 8 acres. The
Department of Natural Resources requested to
lease an additional 5.04 acres to construct a
storage building in 2015.
This Lease Addendum is for 2 years with the
next increase scheduled for July 1, 2019. The
increase for the 8.12 acres will be to $0.03 per
square foot and the current rate of $0.12 per
square foot for the 5.02 acres will remain the
same with a renegotiation date to be at the end
of the two year period.
INTERACTION: Public Works; DNR
RECOMMENDATION: Move to approve and sign the Lease Addendum
with the Department of Natural Resources.
HANDLING: Return 1 Original to Public Works
ATTACHMENTS: Lease; Addendum
LEAD STAFF: Mark Cook
Director of Public Works
KITTITAS COUNTY AIRPORT
t,, " DEPARTMENT OF PUBLIC WORKS
'---�' ADDENDUM TO LEASE
THIS ADDENDUM TO LEASE is made and dated this _day of , 20_, by
and between Kittitas County, a municipal corporation in the State of Washington, hereinafter
referred to as the LESSOR, and Department of Natural Resources, an agency of the State of
Washington, and hereinafter referred to as the LESSEE.
WITNESSETH:
WHEREAS, LESSOR and LESSEE entered into a Lease on May 11, 1977, a copy of
which is attached hereto and by this reference incorporated herein; and
WHEREAS, according to Paragraph 2 "Rent", it states "DNR herewith agrees that the
rentals for every five-year period after the initial five-year period of the term of this lease may be
readjusted by the Board of County Commissioners not to exceed the fair rental value of such
lease premises not including any improvements made by lessee: provided, that in no event shall
such rental adjustment be greater than 40% of the rental for the previous five-year period; and
WHEREAS, it has been agreed between LESSOR and LESSEE that the following CPI
Index will be used for the time periods 7/01/2012 thru 6/30/2014 rental increases. The CPI Index to
be used:
"CPI — All Cities -All Items Size Class D Under 50,000"
WHEREAS, from 7/01/2017 thru 6/30/2019 the increase will be $0.03 per square foot per
the negotiated amount between the Lessor and Lessee for the lease of 8.12 acres (353,707.20 sq.
ft.). The next increase will require a Lease Amendment to be drafted on or before July 1, 2019 for
the next lease term for said 8.12 acres (353,707.20 sq. ft.).
DNR Lease Addendum PAGE t
KITTITAS COUNTY AIRPORT
WHEREAS, the term and rental rate for the 5.02 acres (218,671.20 sq. ft.) will remain at
the rate of $0.12 per square foot with the renegotiation date to be at the end of said two year period.
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 7/01/2017 thru 6/30/2019 Term.
Terms and Rental Rates — 8.12 acres (353,707.20 sq. ft.)
1) "Paragraph #2 — Rent" — Rental Rates for 7/01/2017 thru 6/30/2019 Term.
Lease Periods:
7/01/17 thru 6/30/19
Rental Rate ($0.03
Per So. Ft)
Rental Rate Per
Acre
Total Per Year:
07/01/17 — 06/30/18
$10,611.22
$1,306.80
$10,611.22
7/01/18 — 06/30/19
$10,611.22
$1,306.80
$10,611.22
07/01/19
To Be Negotiated
To Be Negotiated
To Be Negotiated
Terms and Rental Rates — 5.02 acres (218,671.20 so. ft.)
1) "Paragraph #2 — Rent" — Rental Rates for 7/01/2017 thru 6/30/2019 Term.
Lease Periods:
07/01/17 thru
06/30/19
Rental Rate ( $0.12
Rental Rate Per Acre
Total Per Year:
per So. Ft)
07/01/17 — 06/30/18
$26,240.54
$5,227.20
$26,240.54
07/01/18 — 06/30/19
$26,240.54
$5,227.20
$26,240.54
07/01/19
To Be Negotiated
To Be Negotiated
To Be Negotiated
DNR Lease Addendum PAGE 2
KITTITAS COUNTY AIRPORT
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
Approved as to Form:
Prosecuting Attorney
WSBA #
LESSOR:
BOARD OF COUNTY COMMISSIONERS
KITTITAS COUNTY, WASHINGTON
Laura Osiadacz, Chairman
Obie O'Brien, Vice -Chair
Paul Jewell, Commissioner
LESSEE:
a[\,
DNR - Representative
DNR Lease Addendum PAGE 3
KITTITAS COUNTY AIRPORT
DEPARTMENT OF PUBLIC WORKS
ADDENDUM TO LEASE
THIS ADDENDUM TO LEASE is made and dated this 13` day of May, 2015, by and between
Kittitas County, a municipal corporation in the State of Washington, hereinafter referred to as the LESSOR,
and Department of Natural Resources, an agency of the State of Washington, and hereinafter referred
to as the LESSEE.
WITNESSETH:
WHEREAS, LESSOR and LESSEE entered into a Lease on May 11, 1977, a copy of which is
attached hereto and by this reference incorporated herein; and
WHEREAS, on May 1, 2012 Addendum No. 1 was executed to set the rental rates as agreed upon
by the parties and as described below in Terms and Rental Rates — 8.12 acres; and
WHEREAS, the LESSEE requested from LESSOR to lease an additional 5.2 acres abutting the
current acreage being leased; and
WHEREAS, a Binding Site Plan Amendment was completed to accommodate the request and has
been approved; and
WHEREAS, the legal description for said parcel is attached as Exhibit "A" to said Amendment,
NOW, THEREFORE, IT IS HEREBY AGREED by and between the parties that this Addendum to
Lease is to address the rental rates and contract terms as follows for the additional 5.2 acres and the current
rental rates and contract terms for the 8.12 acres:
Terms and Rental Rates — 8.12 acres (353,707.20 sq. ft.)
1) "Paragraph #2 — Rent" — Rental Rates for 7/01/2012 thru 6/30/2017 Term.
Lease Periods:
7101112 thru 6/30117
Current Rate
CPl — 2.3%
Lease 40% Incr.
New Rate
Lease Periods:
7/01/12 — 6/30/13
$3,430.00
$78.89
$3,508.89
7/01/12 — 6/30/13
7/01/13 — 6/30/14
$3,430.00
$78.89
$3,508.89
7/01/13 — 6130/14
7/01/14 — 6/30/15
$3,430.00
Per Lease 40% Inc.
$4,802.00
7/01/14 — 6/30/15
7/01/15 — 6/30/16
$3,430.00
Per Lease 40% Inc.
$4,802.00
7/01115 --6/30116
7/01/16 — 6/30/17
$3,430.00
Per Lease 40% Inc.
$4,802.00
7/01/16 — 6/30/17
7/01/17
To Be Negotiated
I To Be Ne otiated
7/01/17
DNR Lease Addendum PAGE 1 1.
KITTITAS COUNTY
Terms and Rental Rates — 5.02 acres (218,671.20 sq. ft.)
1) "Paragraph #2 — Rent" — Rental Rates for 5101/2015 thru 6/30/2017 Term.
AIRPORT
Lease Periods:
05/01/15 thru 06/30/17
Rental Rate ( $0.12 per
Rental Rate Per Acre
Total Per Year:
Sg. Ft)
05/01/15 — 06/30/15
$4,373.42
$5,227.20
$4,373.42
07101/15 — 06/30/16
$26,240.54
$5,227.20
$26,240.54
07/01/16 — 06/30/17
$26,240.54
$5,227.20
$26,240.54
07/01/17
To Be Negotiated
To Be Negotiated
To Be Negotiated
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.
\o,nniiiuinnn„
ATT ,T111 coMM/ss/,,
O
Prosecuting Attorney
WSBA #
LESSOR:
BOARD OF COUNTY COMMISSIONERS
KITTITAS COUNTY, WASHINGTON
k r��
Gary Berndt, Chairperson
ABSENT
Obie O'Brien, Vice -Chair
Paul Jewe , ommissioner
LESSEE:
(01 L=�
DNR - Representativ
DNR Lease Addendum PAGE 2
KITTITAS COUNTY AIRPORT
EXHIBIT "A"
Lot H -1A, Kittitas County Airport Amended Binding Site Plan (BS -15-00001), as
delineated on Book 39 of Surveys, at Pages 192 and 193, recorded under Auditor's File
No. 201506290003, Records of Kittitas County, Washington; being a portion of the
Southeast Quarter of Section 23, and of the Southwest Quarter of Section 24, all in
Township 18 North, Range 18 East, W.M., in the County of Kittitas, State of
Washington.
DNR Lease Addendum PAGE 3
KITTITAS COUNTY AIRPORT
IZM DEPARTMENT OF PUBLIC WORKS
ADDENDUM TO LEASE
THIS ADDENDUM TO LEASE is made and dated this 1" day of May, 2012, by and
between Kittitas County, a municipal corporation in the State of Washington, hereinafter referred
to as the LESSOR, and Department of Natural Resources, an agency of the State of
Washington, and hereinafter referred to as the LESSEE.
WITNESSETH:
WHEREAS, LESSOR and LESSEE entered into a Lease on May 11, 1977, a copy of which
is attached hereto and by this reference incorporated herein; and
WHEREAS, according to Paragraph 2 "Rent', it states "DNR herewith agrees that the
rentals for every five-year period after the initial five-year period of the term of this lease may be
readjusted by the Board of County Commissioners not to exceed the fair rental value of such
lease premises not including any improvements made by lessee: provided, that in no event shall
such rental adjustment be greater than 40% of the rental for the previous five-year period; and
WHEREAS, it has been agreed between LESSOR and LESSEE that the following CPI
Index will be used for the time periods 7/01/2012 thru 6/30/2014 rental increases. The CPI Index to
be used:
"CPI — All Cities -All Items Size Class D Under 50,000"
From 7/01/2014 thru 6/30/2017 the increase will be based upon the 40% increase per the DNR
existing lease.
NOW, THEREFORE, IT IS HEREBY AGREED by and between the parties to a change in
rental rates and contract terms as follows:
DNR Lease Addendum PAGE 1
1) "Paragraph #2 - Rent" - Rental Rates for 7/01/2012 thru 6/30/2017 Term.
Lease Periods:
7/01/12 thru 6130/17
Current Rate
CPI - 2.3%
Lease 40% Incr.
New Rate
Lease Periods:
7/01/12 - 6/30/13
$3.430.00
$78.89
3,508.89
7/01/12 - 6/30/13
7/01/13 - 6/30/14
$3.430.00
$78.89
3,508.89
7/01/13 - 6/30/14
7/01/14 - 6/30/15
$3,430.00
Per Lease 40% Inc.
$4,802.00
7/01/14 - 6/30/15
7/01/15 - 6/30/16
$3,430.00
Per Lease 40% Inc.
$4,802.00
7101/15 - 6/30/16
7/01!16 - 6/30/17
$3,430.00
400/ Inc.
PTo
80 2. Otoiated
le
7/01/16 - 6/30/17
Bee tiaed
7/01/17
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.
%SSlO/v �
GptJ ............FgS '' LESSOR:
BOARD OF COUNTY COMMISSIONERS
KITTITAS COUNTY, WASHINGTON
9ST:. Cjz s
Alan Crankovrich, Chairman 5/1 //a
Jerk of the and
Approved as to Form: Op rift D
Obie O'Brien, Vice -Chairman
Prosecuting Attorney
WSBA #
ABSENT
Paul 'Jewell, Commissioner
LESS
William J. Frare
Engineering Division Manager
resentative
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Cc9ZOo -co l)
L E A S E
THIS:LEASE made and dated this
day of May, 1977, by
and between Rittitas County, a municipal corporation in the State
of Washington, hereinafter referred to as the County, and the
Department of Natural Resources, an agency of the State of Washin,
ton, hereinafter referred to as DNR.
The County hereby agrees to lease to DNR, and DNR hereby
agrees to lease from the County, the following described real
Property situated in-Rittitas County, Washington, to -wit:
All that portion of the SE 1/4 SE 1/4, Section 23 and
SW 1/4 SW 1/4, Section 24, Township 18 North, Range
18 East, W.M., Rittitas County, Washington, described
as follows:
Beginning at the Southwest corner of Section 24,
Township 18 North, Range 18 West, W.M., thence North
0'35' West along the West section line said Section
24 a distance of 60.0 feet to a true point of beginning.
From the true point of beginning, thence North 8703}+90 3fi
East a distance of $Q§§7.73 feet, thence North 2043'45"
West a distance of T 7.19 feet, thence South'87"34'45"
West a distance of 1,029.25 feet, thence North 47°25'30"
West a distance of 391.35 feet, thence South 87034'
West a distance of 91.63 feet, thence South 0041' o ,
East a distance of 386.78 feet, thence North 870"w
East a distance of 923.07 feet, thence South 0035'00"
East a distance of 261.53 feet, thence North 87035100"
East a distance of 29.04 feet which point is the true
point of beginning.
TERM: The term of this lease shall commence on the 1st day of
June, 1.977, and shall terminate on the 1st day of June, 2027.
RENT: The DNR shall pay the following rent on June 1, 1977, and
each year thereafter during the term in advance the sum of
LEASE
PAGE ONE
JOSEPH PANATTONI
KITTITAD COUNT/ pp0a[CUTOK
RLENaaUKC. WAS"'.. ,
D0D3•
rcterNONc laoq Dna-sae•
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s�^5D,00 per annum. DNR herewith agrees that the rentals for
every E1Ve-year period after the initial five-year period of the
term of this lease may be readjusted by the Board of County
Commissioners not to exceed the fair rental value of such lease
premises not including any improvements made by lessee: PROVIDED,
That in no event shall such rental adjustment be greater than 404
of the rental for the previous five-year period.
In the event the County and DNR cannot agree upon the rentals
for said five-year period, the parties shall submit to have the
disputed rentals for the subsequent period adjusted by arbitration.
The County shall pick one arbitrator, and DNR one, and the two so
chosen shall select a third. No board of arbitrators shall reduce
the rentals below the sum fixed or agreed upon for the last
preceding period., Each party shall bear the expense of the
arbitrator selected by it. The costs and expenses of the third
arbitrator shall be shared equally by the lessee and lessor.
UTILITIES: There presently exists a water system at the Rittitas
County Airport, and DNR shall be entitled to free water from said
system. All other utilities shall be paid by DNR. In the event
that the existing water system should fail and extensive repairs
should become necessary or it should become necessary to install a
new water system, DNR agrees at that time to commence paying a
reasonable charge for domestic water.
ASSIGNMENT: DNR shall not assign or sublet this lease nor any
;EASE
'AGE TWO
JOSEPH PANATTONI
KMITA9 COUNTY PPOCECVTOP
P.O. BOY 9J>
ELL EN60VPC. WA6 NIN OTON
OEB2B
TEL EPNONE (pOB) 026.9aBB
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Portion thereof without first having obtained the written consent
of the County therefor.
PROPERTY DAMAGE AND BODILY INJURY: The DNR hereby agrees to
indemnify and hold harmless the County from any and all claims or
demands of whatsoever nature arising out of loss, damage or injury
to persons or property resulting from DNR's use or occupation of
the leased premises and areas adjacent thereto caused by the
tortious acts or neglect of the DNR, its agents or employees to
the extent allowed by law.
QUIET ENJOYMENT: The County covenants with DNR.that on payment of
the rent herein required to be paid and performance of the
covenants herein contained, DNR and those holding under it may
Peaceably and quietly have, hold and enjoy the premises for the
term hereof, for the purpose of conducting its business in the
usual and customary manner.
WAIVER: No assent, express or implied, by the County to any branch
of any of DNR's covenants, agreements, conditions or terms hereof
shall be deemed or taken to be a waiver of any succeeding breach of
any:covenant, agreement, condition or term hereof.
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
.EASE
'AGE THREE
JOSEPH PANATTONI
KITTITA6 COUNTY PRO."UTON
P.O. !OY 6TT
RtEN spUNO. WABNINOTON
*.,as
TELEPHONE (EOY) Pal.Daaa
C.
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3 whether DNR shall have complied with all of its obligations here-
4 under in respect to the care and maintenance of the premises and al:
5 lother terms and conditions hereof.
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7 WATER: DNR agrees to pay all water charges to the Kittitas County
Reclamation District.
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9 SPECIAL CONDITIONS: Irrigation ditches must not be rerouted without
10 written approval from the Board of Kittitas County Commissioners.
11 Irrigation water utilized by the DNR will not be allowed to run off
12 on runways.
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FENCES AND DITCHES: The DNR shall care for and maintain all fences,
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15 irrigating and drainage ditches upon said property or appurtenances
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thereto in a state of good repair and condition during the term of
this lease.
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18 WASTE: The DNR shall not commit waste of the leased property and
19 shall comply with all the regulations of the weed district within
20 which said leased property is included and shall use all reasonable
21 efforts to eradicate and prevent the growth of noxious weeds.
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23 AIRPORT TRAFFIC: It is understood and agreed that the DNA's use of
24 the leased premises shall not in any manner interfere or restrict
25 the use of aircraft landings, take offs, or storage of aircraft as
26 the airport is presently constructed. DNR shall comply with all
rules and regulations of the Federal Aeronautics Administration.
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30 LEASE
PAGE FOUR
JOSEPH PANATTONI
RITTITA6 COUNTY 11.11CUTOR
R O. BON 877
RLENSOURO, WASHINGTON
sena•
TCLVNogc (507) oxs.eaea
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RIGHTS OF U. S. GOVERNMENT: 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 attached hereto and made a part
of this instrument as though fully set forth herein. DNR agrees
that it will do nothing which will cause the County to be in
violation of the terms of said deed. DNR further herewith agrees
that it has had ample opportunity to review said deed and is aware
of all the terms and conditions therein.
USE OF PREMISES: DNR agrees that it will use the premises only for
the purpose of conducting the operations of the Department of
Natural Resources.
IMPROVEMENTS: It is understood and agreed between te parties that
,Y a i� ���iss
DNR will use said premises to construct ofand ficesAfor DNR. It is -OL
c
further agreed that before such construction commences, that the
plans and specifications for said construction shall be submitted
to the County's Board of County Commissioners for their approval
and to FAA for their approval, and no construction shall commence
until said approval is received by DNR from each of said agencies
in writing. All buildings or other improvements made upon property
leased shall belong to and become the property of the County at the
expiration of the term.
In the event that there is an extension of the term of this
Lease, or in the event that the parties hereto agree to another
Lease whose term commences immediately following the expiration of
:EASE
'AGE FIVE
JOSEPH PANATTONI
KITTITA. COUNTY ppOSMUTOR
1.0. pOK p)T
RL[NSYURG. WASHINGTON
•8925
TELEPHONE (".) I28.328Y
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this lease, it is agreed that for the first ten years of said
extended term or term of a new lease that DNR shall not be required
to pay any rental for any buildings or other improvements made u_oon 1
the leased property during the original term by DNR. j
F APPROVAL•: This lease shall be of/no effect andh/a•fl be void•
UPles to commencement of the term, he lease f''' proved ix}
//
Ariting by the Federal Aeronautics Administration. %Further, the
lessee shall have the right to terminate or requie readjustment of
the terms of this lease in the event FAA does not approve any
proposed construction or modification of improvements proposed by
the'DNR.
DEFAULT: In the event that DNR shall violate this lease, or any of
its conditions or terms as herein stated, the County may terminate
this lease by giving sixty (60) days written notice of the condi-
tions or terms being violated, and if said violations are not
corrected within the sixty-day period, this lease may be cancelled
and the County shall be entitled to peaceably retake possession of
the premises: PROVIDED, the lessee shall have the right to remove
all improvements if such termination is prior to the thirtieth
(30t1T) anniversary of the date of this lease. Notice to the DNR
under this section or any other section shall be in writing and
addressed to the Department of Natural Resources, State of Washing-
ton, Olympia, Washington, by registered or certified mail with
:EASE
'AGE SIX
JOSEPH PANATTONI
NIITITAS COUNTY PROSECUTOR
Lo. ROE vv
ELLENS0UR1.WAENINOTON
o(...
TELEPHONE
(SOR) 118.pDGE
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Postage prepaid, and the parties herewith agree that such notice
shall be sufficient.
IN WITNESS WHEREOF, the County and DNR have executed this
lease on the day and year first above written.
AP
oved as to Form Only
PAGE SEVEN
KITTITAS COUNTY
ATTEST:
Kittitas County Auditor
DEPARTMENT OF NATURAL RESOURCES,
STATE OF WASHINGTON
APPROVED:
feder��tics ministr-lon
JOSEPH PANATTONI
RITi1TAe fAYNTY Pp06ECYTOR
•. o. eoE s»
ELLLNSlVRSWAS NINGTDN
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STATE OF WASHINGTON )
) ss.
COUNTY OF KITTITAS )
I, the undersigned, a notary public in and for the State of
Washington, do hereby certify that on this // day of May,
1977, before me personally appeared Frank Gregerich, Jr., known to
me to be the duly elected, qualified and acting Chairman of the
Board of Kittitas County Commissioners, and executed the within
and foregoing instrument and acknowledged the said instrument to
be the free and voluntary act and deed of said Kittitas County,
Washington, for the uses and purposes therein mentioned, and he on
oath stated that he was authorized to execute said instrument by
resolution of the Board of County Commissioners of Kittitas County,
Washington, and that the seal affixed is the official seal of
Kittitas County.
WITNESS MY HAND AND OFFICIAL. SEAL hereto affixed the day and
year first above written.
LEASE
PAGE EIGHT
NOTA. PUBLIC in and for the State of
Washington, residing at Ellensburg.
j
JOSEPH PANATTONI
KITTITAL COUNTY PRO ... UT.R
P.O. !0] 577
E "L XSURO, WA]NINOTON
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