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HomeMy WebLinkAboutLease AmendKITTITAS COUNTY AIRPORT DEPARTMENT OF PUBLIC WORKS AMENDMENT TO LEASE THIS AMENDMENT TO LEASE is made and dated this 2r-{~ay of a r( I 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. WIT N E SSE T H: 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 s9 feet Previous Rate Rental Rate Term Per Year ($.065 per ($.066 per Sq. Ft.) 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 . I Lot C-35 rate -109 ,335.60 5g feet Term Previous Rate Rental Rate Per Year ($.065 per ($.066 per Sq. Ft.) 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 Ren~gotiate *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: ftClerk of the Board-Julie Kjorsvik LESSOR: BOARD OF COUNTY COMMISSIONERS KITTITAS COUNTY, WASHINGTON ~'Chairman ., KITTITAS (" -'JNTY AIRPORT DEPAR TM.. OF PUBLIC WORKS AMENDMENT TO LEASE THIS AMENDMENT TO LEASE is made and dated this 5n-, day of 011AbA'M <" , 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. WIT N E SSE T H: 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 Tenn. Lot C-34 rate -108,900 sq feet Term 04/01/13 -03/31/14 04/01/14 -03/31/15 04/01/15 -03/31/16 04/01/16 -03/31/17 04/01/17 -03/31/18 Airport Safe Storage LLC Lease Addendum 04/01/18 Previous Rate Rental Rate Per Year ($.063 per ($.065 per Sq Ft) Sq Ft) $ 6,860.70 $ 7,078.50 $ 7,078 .50 $ 7,078.50 $ 7,078.50 $ 7,078 .50 RenEmotiate PAGE 1 '.' KITTITAS COUNTY AIRPORT Lot C-35 rate -109,335.60 sq feet Term Previous Rate Rental Rate ( $.065 Per Year ($.063 per per Sq Ft) 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 04/01117 -03/31/18 $ 7,106.81 04/01/18 Renegotiate 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 . Approved as to Form : Prosecuting Attorney WSBA # _____ _ Airport Safe Storage LLC Lease Addendum LESSOR: BOARD OF COUNTY COMMISSIONERS KITIITAS COUNTY, WASHINGTON Obie O'Brien, Chair Paul Jewell, Vice-Chair Gary Berndt, tom miss ion e r LESSEE: PAGE 2 KITTITAS COUNTY AIRPORT KITTITAS COUNTY AIRPORT DEPARTMENT OF PUBLIC WORKS LEASE THIS LEASE made and dated this 1st day of April, 2008, is by and between the COUNTY OF KIITITAS, Washington, the Lessor hereinafter referred to as the "County", and AIRPORT SAFE STORAGE LLC th~ 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 Lot C-35 2 .50 Acres -108,900.00 Square Feet 2.51 Acres -109,335.60 Square Feet This lease is made in accordance with the provisions of RCW 36.34. I 1 ) TERM-The term of this lease shall be for thirty-five (35) years and will commence on the 1st day of Apr\~ 2008, and shall terminate on the last day of March, 2043 . . 2) RENT-Rent shall be paid in ~dvance 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-Septe",~r 31, 2008 September 31, 2008 ;-March 31, 2009 April 1, 2009 -March 31 , 2010 April 1, 2010 -March 31, 2011 April 1, 2011 -March 31, 2012 April 1, 2012 -March 31, 2013 $ 6,874.42 $ 6,874.42 $ 13,748.84 $ 13,748.84 $13,748.84 $ 13,748.84 TO BE NEGOTIATED 3) RENTAL RATE ADJUSTMENT: Beginning with the year April 1, 2013, the rental rate (a) shall be re -adjusted and fixed by the Board of County Commissioners every five years as required in ~CW 36.34.180. Beginning the fifth year, the Lessor shall have the right to readjust the rent on or before April 11t of the fifth. tenth, fifteen , twentieth, twenty-fifth" thirtieth , and thirty-fifth years of this lease for each following five y~ar 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 KITIIT AS COUNTY AIRPORT UCPI -All Cities-All Items Size Class 0 Under 50,000" In the event that the lessee and the Board cannot agree upon the rentals for said five year period , ~he 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 shall be in lieu of taxes for fire protection services. The annual rate shall be based upon the annual fire assessment determined by the Kittitas Valley Fire & Rescue to be caloulated on January 1 It of the current year. The assessment shall be pro-rated monthly, due and payable concurrently with the monthly lease payment. 6) MAINTENANCE: The Lessee covenants, promises , and agrees that it will perform all routine malntenanqe on said premises hereby demised so as to keep the same in as good as c9ndition 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 ground,~, 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 t6 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 maintairi the grounds In a neat and clean condition . This shall include mowing or sp'r.aying 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 hav~ the right to install or place signs or posters anywhere on or about the leased pj emises 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 ~ithheld. AIRPORT SAFE STORAGE LLC PAGE 2 KITIIT AS 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 oym 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 AND 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 Kittita ~ County Airport (Bowers Field) (including , but not limited to, the regulations oftJ'le 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 Aeron ~utical Actfvities approved by the Board of County Commissioners. ' 9) ENVIRONMENTAL PROTECTION: Lessee agrees to comply with all applicable federal, state, and local laws jind regulations governing environmental pollution control In effect on the date of execution of this lease. 10} INSPECTION: Lessee agree~ that the County and its employees, and agents from the Department of Ecology. Environmental Protection Agency, and ar'lY other governmental agency involved in environmental protection, have the right to make inspections any. time during normal operating hours, without notice. If it is determined that Lessee has violated federal or state environmental control laws or regulations, upon t Em (10) days written notice, Lessee must immediately commence and dlligsRtly pursue a permanent solution to the satisfaction of feder~l . state or local.agencies, or vacate the premises (as specificalty provided for in the Default Sectjon herein). All cost~ requ i red to remedy the problem shall be at the expense of ~he Lessee. 11) UTILITIES: The Lessee sh·all 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 l Lessee shall engage one or 1110re qualified individuals to begin the improvements as proposed. Construction shall commence within sixty (60) calendar days of Lessee's receipt of La'ssor'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 pursuando this provision shall become the property of lessor upon final completion there;of . Any work anticipated on the leased premises shall be in accordance with the ~urrent 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) COUNTY'S LIABILITY: The County shall not be liable for any damage occasioned by failure to keep saiQ premises in good repair and shall not be liable for any damage done or occa'sioned 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, Jsnow or ice being upon or coming through the roof, skylight, trapdoor, or Qtherwise, nor for any damage arising from the accident or neglect of the Lesse~ or any of its members or any lessees or occupants of adjacent or continuous property . 14) ASSIGNMENT: The l~'ssee shall not assign this lease nor any portion thereof nor sublet the premises npr any portion thereof, without the written consent of the County, however, th~',County shall not unreasonably withhold such consent. 15) HOLD HARMLESS: 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) INSURANCE: The lessee shall carry and maintain for the mutual benefit of the County AIRPORT SAFE STORAGE LLC PAGE 4 . 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 prQrated 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 dui'ing 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 inspect.lng 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) A.IRPORT TRAFF IC: 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 Qf aircraft as preselltly 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) R.IGHT 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 sa id deed is available for inspection at the office of the Kittitas 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 re~iver for the Lessee, this lease shall be immediately forfeited and shall be of no further force and effect and that the Trustee in Bankruptcy. Receive~! 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) 23) 23) AFFIRMATIVE ACTION: 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. DEFAULT: In the event t~at the Lessee ~hall 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. NOTICES: Any noticegi~Em by one party to the other in connection with this agreement shall be iri"writing and shall be sent by certified or registered mail, return receipt requested, as follows: 1. If to Lessor, addressed to: Kittitas County Department of Public Works, 411 N. Ruby,$te. #1, Ellensburg, WA 98926, Attention: Airport Manager. . 2. If to Lessee, addressed to: Airport Safe Storage, LLC P.O. Box 720 Ellensburg, WA 98926 Notice shall be deemed to have been received on the date of receipt as shown on the return receipt.' 24) ATTORNEY 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 otherw.ise, arising out of this lease, the prevailing party shall recover reasonable attorney's fees which shall be determined ahd 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 res~ive heirs, executors , administrators, successors and assigns. .. 25) VENUE: In the ·event t~ere 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 , . KITIIT AS COUNTY AIRPORT IN WITNESS WHEREOF I the Lessor and Lessee have signed their names and affixed their seals the day and year first above written. \11111 ,11111111/1/1 ,,"'\'\' O~MISS~ ""," .. '" "" CI ... ,.... 0"k J', ... ~ ~ ..... . .... ~ ~ .. ~ " • '9: -:. $~... ' .. \J)~ jOl..,..... .. ---.., ; ~O l S E ~L ]o j \~;---/~~/ ~'~'/~/Cb~~~""'" ~III }". 11/111'1111,,,11\ .;..I ,.,./v 0 Clerk of the Board ~ LESSOR BOARD OF COUNTY COMMISSIONERS OPPOSED Mark McClain; Chair , .~L/ ~ K Alan Crankovich. Vice Chair {)Jgg~ WSBA# 7( 7 $-1 AIRPORT SAFE STORAGE LLC David B. Bowen, Commissioner LESSEE t , LLC ~A'''e. ~ b.~ Print Name Address: P.O. Box 720 Ellensburg, WA 98926 Telephone: (509) 962-7244 Federal 1.0. dIP -)«;7 ()1i PAGE 7