HomeMy WebLinkAboutAddendumtoLeaseJClerfKITTITAS COUNTY
DEPARTMENT OF PUBLIC WORKS
AGENDA STAFF REPORT
AGENDA DATE: August 21, 2018
ACTION REQUESTED: Approve & Sign an Addendum to a Lease with
Jack Clerf for property located on the Kittitas
County Airport, Bowers Field.
BACKGROUND: Jack Clerf has a private hangar located on
approximately 4845 square feet of leased
Airport property within the Aeronautical area.
This 25 year lease was entered into on August
1, 1993, and is now due for the every 5 year
renegotiation.
In determining the rate increase the Consumer
Price Index (CPI) —All Urban Consumers Size
Class D (Under 50,000) was used. The
increase was based upon an average of the
previous five years of the CPI which came to a
1.30% increase.
At the direction of the Board of County
Commissioners the Addendum also adds the
Modification or Termination clause. Recently,
the Federal Aviation Administration noticed
staff that a Nondiscrimination clause was to be
added to all leases as well due to funding
requirements and is included in the Addendum.
INTERACTION: Public Works; Jack Clerf
RECOMMENDATION: Move to approve Lease Addendum with Jack
Clerf for leased County property located at the
Bowers Field Airport.
HANDLING: Return one original to Public Works
ATTACHMENTS: Lease Addendum; Lease; Vicinity Map
LEAD STAFF: Mark Cook
Public Works Director
KITTITAS COUNTY AIRPORT
DEPARTMENT OF PUBLIC WORKS
ADDENDUM TO LEASE
THIS ADDENDUM 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 JACK CLERF,
and hereinafter referred to as the LESSEE.
WITNESSETH:
WHEREAS, LESSOR and LESSEE entered into Lease on August 1, 1993, a copy
of which is attached hereto and by this reference incorporated herein; and
WHEREAS, according to Paragraph 3 "Adjustment of Rental", it states "After the
fifth year, the Lessor shall have the right to increase rental rates for one or more years
effective at the beginning of the fifth, tenth, fifteenth and twentieth year of this lease;
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 8/01/2018 thru 7/31/2023 Term.
8/01/18 — 7/31/23
Previous Rental Rate
($.092 per Sq. Ft)
Rental Rate
($.093 per Sq. Ft.)
Not Including
Leasehold Tax`
Term
445.75
8/01/18 — 7/31/19
451.55
8/01/19 — 7/31/20
451.55
8/01/20 — 7/31/21
451.55
8/01/21 — 7/31/22
451.55
8/01/22 — 7/31/23
$451.55
8/01/23
Rene otiate
Reneotiate
'The current Leasehold Excise Tax Rate is 12.84%, as determined by the State of Washington and is subject to change.
7, 1 AS C 1 U N fY AO. PORT
2) "Paragraph #20 — Modification or Termination — will read as follows:
Lessee and Lessor agree that Lessor may, at Lessor's sole discretion, modify the
terms of this lease in whole or in part, including but not limited to any term or
condition of this lease, including cancelling the unexpired portion of this lease and
re -letting the property to another tenant, in the event that any regulation governing
airports or county property is amended in a way that impacts the Lessor's ability to
lease, use, control, protect, or maintain the Property. For the purposes of this
section, "regulation" is defined to include, but is not limited to: case law interpreting
any rule or regulation; any federal rules and regulations, including Federal Aviation
Administration rules and regulations; state rules and regulations; and local rules,
regulations and ordinances.
In the event that Lessor shall elect to modify or terminate this lease, Lessor shall
do so only upon one hundred twenty (120) days written notice, notifying Lessee, at
Lessee's address of record, that the lease to which this applied is being so
modified or terminated.
Upon receipt of such notification, and in the event the notification specified
modification of the lease short of termination, Lessee shall have sixty (60) days in
which to notify Kittitas County of Lessee's intention to continue the lease as
modified or of Lessee's intention to treat the lease as terminated.
In the event that Lessee elects to treat the lease as terminated, all rents shall be
pro -rated to the date Lessee shall have restored the premises to the Lessor in
accordance with the terms of the lease agreement governing Lessee's duties to
restore the premises to Lessor upon expiration of the lease term.
It is further agreed that neither such modification or termination of this lease nor
any subsequent re -letting of the premises, in whole or in part, shall give rise to any
cause of action for damages or any other form of relief by Lessee against Lessor
or any successor lessee.
In the event of such modification or termination, Lessee understands that other
than a refund of any unearned rent prorated to the date Lessee has restored the
premises to Lessor, Lessee shall have no claim for compensation as occasioned
by said modification or termination.
3) "Paragraph #21 — Nondiscrimination— will read as follows:
The (grantee, licensee, permittee, etc., as appropriate) for himself, his
heirs, personal representatives, successors in interest, and assigns,
as a part of the consideration hereof, does hereby covenant and
agree (in the case of deeds and leases add "as a covenant running
with the land") that in the event facilities are constructed, maintained,
or otherwise operated on the said property described in this (deed,
license, lease, permit, etc.) for a purpose for which a DOT program
<1 -ASF
KJTITAS CrOUNT'y
or activity is extended or for another purpose involving the provision
of similar services or benefits, the (grantee, licensee, lessee,
permittee, etc.) shall maintain and operate such facilities and services
in compliance with all other requirements imposed pursuant to 49
CFR Part 21, Nondiscrimination in Federally Assisted Programs of
the Department of Transportation, and as said Regulations may be
amended.
The (grantee, licensee, lessee, permittee, etc., as appropriate) for
himself, his heirs, personal representatives, successors in interest,
and assigns, as a part of the consideration hereof, does hereby
covenant and agree (in the case of deeds and leases add "as a
covenant running with the land") that: (1) no person on the grounds
of race, color, or national origin shall be excluded from participation
in, denied the benefits of, or be otherwise subjected to
discrimination in the use of said facilities, (2) that in the construction
of any improvements on, over, or under such land and the furnishing
of services thereon, no person on the grounds of race, color, or
national origin shall be excluded from participation in, denied the
benefits of, or otherwise be subjected to discrimination, (3) that the
(grantee, licensee, permittee, etc.) shall use the premises in
compliance with all other requirements imposed by or pursuant to
49 CFR Part 21, Nondiscrimination in Federally Assisted Programs
of the Department of Transportation, and as said Regulations may be
amended.
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
❑ Deputy Clerk of the Board- Mandy Buchholz
LESSOR:
BOARD OF COUNTY
COMMISSIONERS
KITTITAS COUNTY, WASHINGTON
Laura Osiadacz, Chairman
Obie O'Brien, Vice -Chairman
Cory Wright, Commissioner
LESSEE:
L �
Jack Clerf, Lessee
'9(2-1,201a
Date Signed
PACF s
: KITTITAS COUNTY AIRPORT
r_ DEPARTMENT OF PUBLIC WORKS
ADDENDUM TO LEASE
THIS ADDENDUM TO LEASE is made and dated this f.day of
2013, by and between Kittitas County, a municipal corporation in the State of Washin ton,
hereinafter referred to as the LESSOR, and JACK CLERF, and hereinafter referred to as the
LESSEE.
WITNESSETH:
WHEREAS, LESSOR and LESSEE entered into a Lease on August 1, 1993, a copy of
which is attached hereto and by this reference incorporated herein; and
WHEREAS, according to Paragraph 3 "Adjustment of Rental", it states " After the fifth
year, the Lessor shall have the right to increase rental rates for one or more years effective at the
beginning of the fifth, tenth, fifteenth and twentieth year of this lease";
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 8/01/13 thru 7/31/18 Term — will read as
follows.
8/01/13-7/31/18 Term
Rental Rate I $.09
per Sq Ft
Leasehold Tax
Total Per Year
8/01/13 - 7/31/14
1445.75
$57.23
502.98
8/01/14 —7/31/15
445 .7557.23
L502.98
8/01/15 - 7/31/16
445.75
$57.23
$502.98
8/01/16 - 7/31/17
445.75
$57.23
$502.98
7_- 7/31/18
445.75
57.23
502.98
8/01/18
Renegotiate
Renegotiate
Renegotiate
PAGE 1
KITTITAS COUNTY AIRPORT
2) "Paragraph #5 - Fire Protection Assessment" - will read as follows:
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 County Assessor and Kittitas Valley Fire &
Rescue to be calculated on January 1 s` of the current year. The assessment shall be due and
payable concurrently with the lease payment or through Personal Property Taxes.
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:
M<2
Clerk of the Ybard
Approved as to Form:
Prosecuting Attorney
WSBA #
LESSOR:
BOARD OF COUNTY COMMISSIONERS
KITTITAS COUNTY, WASHINGTON
4q r-)
Obie O'Brien, Chairperson
ABSENT
Paul Jewell, Vice -Chair
Gary Berndt, ommissioner
LESSEE:
Jack Clerf
PAGE 2
KITTITA£ 1NTY AIRPORT J R I G l N A L
DEPARTMENT OF PUBLIC WORKS
ADDENDUM TO LEASE
THIS ADDENDUM TO LEASE is made and dated thisI day of
2008, by and between Kittitas County, a municipal corporation in the State of Washington,
hereinafter referred to as the LESSOR, and JACK CLERF, and hereinafter referred to as the
LESSEE.
WITNESSETH:
WHEREAS, LESSOR and LESSEE entered into a Lease on August 1, 1993, a copy of
which is attached hereto and by this reference incorporated herein; and
WHEREAS, according to Paragraph 3 "Adjustment of Rental", it states " After the fifth year,
the Lessor shall have the right to increase rental rates for one or more years effective at the
beginning of the fifth, tenth, fifteenth and twentieth year of this lease";
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 8/01108 thru 7/31/13 Tenn — will read as
follows.
8/01/08-7131/13 Term
Rental Rate ($.09
per S Ft
Leasehold Tax
Total Per Year
8101/08 - 7/31/09
436.06
55.99
492.05
8/01 /09 — 7131 /10
8/01110 - 7/31/11
436.06
436.06
55.99
55.99
492.05
492.05
8/01/11 - 7/31/12
436.06
55.99
492.05
8/01112 - 7/31/13
436.06
$55.99
$492.05
8/01/13
Reneotiate
Renegotiate I
Renegotiate
PAGE 1
KITTITAS COUNTY AIRPORT
2) "Paragraph #5 — Fire Protection Assessment" — will read as follows:
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 County Assessor and Kittitas Valley Fire &
Rescue to be calculated on January 1s' of the current year. The assessment shall be due and
payable concurrently with the lease payment or through Personal Property Taxes.
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.
�,c``�GOMM1...... 'o
flfi7EST:flit Ilk
\lf1''fL n
UClerk of the Boar
LESSOR:
BOARD OF COUNTY COMMISSIONERS
KITTITAS COUNTY, WASHINGTON
OPPOSED
Mark McClain, Chairperson
A rove astoForm-
-L�i�
�j Alan
�rosecutin AttorneAttorne
WSBA # g�_
Huber,
Vice-Chair
PAGE 2
LEASE
THIS LEASE made and dated this /i� day ofC% Oi ' 1993, is by
and between the COUNTY OF KITTITAS, Washington, the Lessor hereinafter referred
to as the "County", and JACK CLERF, 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:
That portion of the SE 1/4 SE 1/4, Section 24, Township 18 North,
Range 18 East, W.M., Kittitas County, State of Washington, described
as follows:
Beginning at the intersection of centerline of Bowers Road with the
centerline of Cessna Road thence North 01 047'30" W along the
centerline of Cessna Road, 124.00 feet; thence North 88012'30" E,
30.00 feet to the true point of beginning; thence continuing North
88012'30" E, 54.44 feet; thence North 01047'30" W, 89.00 feet;
thence South 88012'30" W, 54.44 feet; thence South 01 047'30" E,
89.00 feet to the true point of beginning.
4,845.16 Sq. Ft = 0.11 acres
This lease is made in accordance with the provisions of RCW 36.34.
TERM. The term of this lease shall commence on the 1 st day of August, 1993,
and shall terminate on the 31st day of July, 2018.
RENT. Rent shall be paid in advance on an annual basis and the rental shall be:
First year
$245.00
Second year
$260.00
Third year
$275.00
Fourth year
$290.00
tiv
Fifth year
$305.00
9-7
LEASE
PAGE 7
ADJUSTMENT OF RENTAL. After the fifth year, the Lessor shall have the right
to increase the rent on or before July 31st of the fifth, tenth, fifteenth and twentieth
year of this lease for each following five year period. If the Lessee does not agree
with the rental, the Lessee may request arbitration. If the Lessee elects to arbitrate,
the Lessee shall select one arbitrator and the Lessor shall select one arbitrator and the
two so chosen shall select a third arbitrator. The arbitrators shall have the authority
to increase the rent or continue the previous rental and both parties shall be bound by
the decision of the arbitrators. The cost of arbitration shall be borne by the Lessee.
LEASEHOLD TAX. The Lessee shall pay to the Lessor, 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.
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,
a sum equal to $1.00 (plus any special levies of the Fire District which has received
voter approval) per $1,000.00 of appraised value of land and improvements of the
leased premises. The value of the leased premises shall be determined by the Kittitas
County Assessor. This fee shall be due annually each and every year during the term
and shall be due and payable on the 1 st day of March of each year. In the event the
premises are leased for only a portion of a year, the amount shall be prorated. Any
rental payment and any fees paid in lieu of fire protection services which are past due
shall accrue a delinquency fee of eighteen percent (18%) per annum.
UTILITIES. The Lessee shall pay for all utility services supplied to the premises.
PURPOSE. The Lessee shall utilize the premises only for the purpose of an
aircraft hanger for non-commercial aircraft maintenance.
ASSIGNMENT. The Lessee shall not assign this lease nor sublet any portion
thereof without first obtaining the written consent of the Lessor.
RULES AND REGULATIONS: The Lessee agrees to comply with all pertinent
rules and regulations of the federal, state and local governments, as well as the rules,
regulations, ordinances, and minimum standards of the Kittitas County Airport
LEASE
PAGE 2
(Bowers Field), as are presently in effect and may in the future be adopted. The rules,
regulations, ordinances and minimum standards of the Kittitas County Airport (Bowers
Field) are made a part of this Lease and shall have the same effect as though written
herein, and may be inspected in the office of the Department of Public Works, Kittitas
County Courthouse.
HOLD HARMLESS. The Lessee hereby indemnifies and agrees to hold harmless
the Lessor from any and all claims or demands whatsoever arising out of any loss,
damage, or injury to persons or property resulting from the Lessee's use or occupancy
of the leased premises, or caused by the acts or neglect of the Lessee, his agents or
employees.
AREA MAINTENANCE. Lessee shall, during the term of this lease, maintain the
area between the building and boundary line of said lease to the satisfaction of the
Airport Manager. The area shall be kept free of all debris, weeds and brush for the
term of this lease. Lessee shall be responsible for reimbursement to the Kittitas
County Weed Authority or Kittitas County Department of Public Works in the event
that the County Weed Authority or airport authority undertakes noxious weed control
measures.
INSURANCE. The Lessee shall obtain and maintain in force during the term of
this Lease a liability insurance policy, which provides protection for bodily injury
(including death) and property damage. Said insurance shall provide coverage by the
Lessee to any employees or permittees of the Lessee.
Liability insurance policy shall be as follows:
1. Premises liability coverage in an amount not less than $100,000 - bodily
injury; $300,000 - property damage; $300,000 - each occurrence.
2. Provide for not less than thirty (30) days in advance a written notice to
Kittitas County regarding any material change or termination of the
policy.
Lessor hereby releases Lessee of and from every and all right, claim and
demand that Lessor may hereafter have against Lessee, its successors or assigns,
LEASE
PAG£ 3
arising out of or in connection with any loss or losses occasioned by fire and such
items as are included under the normal extended coverage clauses of insurance
policies, and does hereby waive all rights of subrogation in favor of insurance carriers
against Lessee arising out of any losses occasioned by fire and such items as are
included under the normal extended coverage clauses of fire insurance policies, and
sustained by Lessor in or to the premises. Lessee hereby releases Lessor from any
and every right, claim and demand that Lessee may hereafter have against Lessor, his
successors or assigns arising out of or in connection with any loss or losses
occasioned by fire and such items as are included under the normal extended
coverage clauses of fire insurance policies, and does hereby waive all rights of
subrogation in favor of insurance carriers against Lessor arising out of any losses
occasioned by fire and such items as are included under the usual extended coverage
clauses of fire insurance policies and sustained by Lessee to its trade fixtures,
equipment, and other personal property in the demised premises.
REMOVAL OF BUILDING. The Lessee's predecessor in interest has constructed
an airplane hangar on the premises and the parties agree that at the end of the term,
the Lessee shall have the option of removing the building from the premises. In the
event the Lessee exercises such option, the building shall be removed within thirty
(30) days of the termination of this lease and upon giving the Lessor notice in writing
prior to the termination of the Lessee's intent to remove such building. In the event
notice is not given or that the Lessee shall fail to remove within the time limit, the
building shall become the property of the Lessor.
CONSTRUCTION. The Lessee shall have the right during the term to construct
and maintain a concrete apron between the present structure on the premises and the
existing concrete apron. Prior to construction, the Lessee shall submit a written plan
and specifications for the construction work and said apron shall not be constructed
without said plans having first been approved, in writing by the Lessor's Director of
Public Works.
LEASE PAGE 4
RIGHTS OF THE U.S. GOVERNMENT: The Lessor 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 Kittitas County
Department of Public Works, hereto and 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 furthermore agrees that it has had
ample opportunity to review said deed and is aware of all of the terms and conditions
therein.
DEFAULT. That the time and manner of payment by Lessee of said rent as
herein agreed, and the strict performance by Lessee of the terms, conditions and
covenants herein contained, are hereby made of the strict essence of this Lease, and
if default shall be made in payment of rent hereinabove specified to be paid, or any
part thereof, or if default shall be made in any of the covenants, promises or
agreements herein contained to be kept by Lessee, it shall be lawful for said Lessor,
at its election so to do, to re-enter the said demised premises, or any part thereof,
upon giving Lessee thirty (30) days written notice of its intention so to do. If said
Lessor takes possession of said premises and relets the same, such reletting shall not
operate as termination of this lease unless said Lessor so elects, such election to be
evidenced by written notice to Lessee. All the foregoing remedies are cumulative and
are given without impairing any other rights or remedies of said Lessor.
NOTICES. 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:
1. If to Lessor, addressed to: Kittitas County Department of Public
Works, 205 West 5th, Room 108, Ellensburg, WA 98926, Attention: Airport
Manager.
2. If to Lessee, addressed to: Jack Clerf, P.O. Box 635, Kittitas, WA
98934.
Notice shall be deemed to have been received on the date of receipt as shown
on the return receipt.
[EASE
PAGES
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 otherwise, arising out of this lease, the prevailing party shall recover
reasonable attorney's fees which shall be determined and taxed by the court as part
of the costs of such action. That 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.
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.
IN WITNESS WHEREOF, the Lessor and Lessee have signed their names and
affixed their seals the day and year first above written.
LESSOR
BOARD OF COUNTY COMMISSIONERS
0�
Ray O en Chas rson
444 T /—
Mary Seubert, V' -Chairperson
Don Sorenson, Commissioner
LEASE
PAGE 6
LESSEE
AP ED AS TO FO Jack Clerf
Address
0awdA. itts grog— f�8�
Prosecuting Attorney Telephone Number
LEASE
PAGE 7
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