HomeMy WebLinkAboutLease AgreementKITTITAS COUNTY AIRPORT
LEASE
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THIS LEASE made and entered into this iat day of
-t
by and
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between Kittitas Co unty, a municipalcorporation in the State of ington, hereinafter
referred to as the LESSOR, and Virgil D. Thovson, hereinafter referred to as the
LESSEE.
WITNESSETH:
The Lessor hereby agrees to lease to the Lessee, and the Lessee hereby agrees to
lease from the Lessor, the following described real property (hereinafter the "Property"):
See Exhibit "A" attached hereto, also described as:
Lot H-38 of the Bowers Field Airport Binding Site Plan Amendment BS-18-00001, as
recorded on July 26,2019, in Volume 13, pages 4043, County of Kittitas, State of
Washington.
Containing 6,868.55 square feet or.16 acres more or less
This lease is made in accordance with Chapter 2.81 KCC. This lease is subject to the
provisions of Chapter 59.12 RCW as currently existing of hereafter amended.
TERM: The term of this lease shall be for 25 years and will commence on the first
day of Aprtl2020.
RENT: Rent shall be paid in advance on an annual basis, with the first payment due
on or before the 1st day of April each year and continuing thereafter until termination
of this lease. The rental for each year shall be as follows.
04to1t202a -
03/31 Term
Rental Rate
($.14 per Sq. Ft.)
Not lncludinq
Leasehold Tax*
04t01t20 - 03t31t21 $961.60
04t01t21 - 03t31t22 $961.60
04t01t22 - 03t31t23 $961.60
04t01t23 - 03t31t24 $961.60
04t01t24 - 03t31t25 $961.60
04t01t25 Renegotiate
"The current Leasehold Excise Tax Rafe r's 12.84%, as determined by the State of Washington and is subject to change.
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A. April 1, 2020 through March 31, 2025.
LESSEE promises and agrees to pay rent to LESSOR at the rate of ($0.14
per square foot) per year for the leased premises, made on or before the
10th day of each month in which such payment is due. This is the "then
current rate" per square foot of leased property used for "aeronautical
purposes" as set by Bowers Field. Payments shall be made to Kittitas
County Department of Public Works. Any rental payment past due shall
accrue a delinquency charge of eighteen percent (18%) per annum, levied
monthly.
For that area only used for storage, manufacturing, warehousing and/or
other business uses associated with Aircraft Storage but not used directly
in "aeronautical use", LESSEE promises and agrees to pay rent to LESSOR
at the rate of ($0.14 per square foot) per yearfor the leased premises, made
on or before the 1Oth day of each month in which such payment is due. The
rate for this square footage shall be in lieu of the rate established in
Paragraph A above, and is not additive for that square footage that is used.
Aorll 1. 2021: Effective this date, the monthly lease payment shall be
increased by one and one-half percent (1.5%) as a set lease rate increase.
The lease rate shall increase by 1.5o/o each yearthereafter, i.e. January 1,
2019t2020t202112022.
ADJUSTMENT OF RENTAL: Effective January 1, 2024, the United
States Bureau of Labor Statistics Consumer Price lndex (cPl), Seatfle-
Everett Metropolitan Area, All Urban Consumers - Base Year 1984 average
shall be computed for the years 2019 through 2023. lf the CPI average is
higher for the previous five (5) years than the 1.5o/o per year used the
previous five (5) years, the rate increase applicable January 1, 2024, shall
be this average CPI increase. This new average rate increase shall be used
for the next five (5) calendar years, i.e. January 1,2024 through 2028.
Effective January 1, 2024, the adjustment of the lease rate shall be
accomplished in a similar manner. The previous five (5) years US Bureau
of Labor Statistics CPI average will be computed (2019 through 2023) and
compared to the increase made over the preceding five (5) years. The
higher rate shall apply for the next five (5) years. This methodology shall
be used throughout the remaining years of the agreement
The rent shall not decrease in the event of a decrease in the Consumer
Price lndex over any five (5) year period. lf the average Cpl for any five
year period is less than the rate used the previous five (5) years, the
higher rate shall continue to apply.
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KITT'TA$ #*UHJTY AIffiF*RT
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Modifications to the rental rate per square foot of airport property shall be
based on the then current "aviation" (direct aeronautical) or "commercial"
(non-aeronautical) standard rate as set by LESSOR and the specific
property areas being leased.
LEASEHOLD TAX: ln addition to any rental herein provided, 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 (R.C.W. 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 PROTEGTION ASSESSMENT: ln 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 annualfire assessment
determined by the Kittitas County Assessor and Kittitas Valley Fire & Rescue to
be calculated on January 1"t of the current year. The assessment shall be pro-
rated monthly, due and payable concurrently with the monthly lease payment.
UTILITIES: The Lessee shall pay for extension of and all utility services supplied to
the premises. Any such extensions shall be subject to the advance review of the
Lessor.
PURPOSE: lt is understood by Lessee that this lease is not for commercial
purposes and that the lease rate is for a ground lease for a private Aircraft Hangar.
The Lessee shall utilize the premises primarily for an aircraft hangar for non-
commercial aircraft storage and maintenance at least seven (7) months out of each
calendar year. The land and anv improvements are for non-commercial uses onlv:
Lessee shall not conduct anv tvpe of commercial activitv from said premises.
without first obtaining the prior written approval of the Department of Public Works.
No planes shall be allowed to be tied-down on the apron area of the leased
premises. The leased premises are specifically for the private hangar.
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
(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 Agreement and shall have the same effect as
though written herein. A copy of the Kittitas County Airport Standards is on file in the
office of the Kittitas County Department of Public Works.
IMPROVEMENTS: Upon termination of this lease, for whatever reason and
under whatever circumstances, all improvements remaining upon the leased
premises become the property of Lessor, free and clear, without any liability of
Lessor to Lessee. Should Lessor desire the removal of Lessee's improvements
upon the date of lease termination, Lessor shall give Lessee written notice to
remove all improvements and return the premises to its state as before the lease
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KITTITAS *#IJilITY AIRPSRT
at least thirty (30) days prior to the termination date for the lease. Upon removal,
the premises shall be left in a neat and orderly condition, without debris and shall
be graded level. Should the premises not be left in such condition, after Lessee
received such notice, Lessor may remove improvements and repair the premises
and seek reimbursement from Lessee in any manner allowed by law.
ln consideration for a lease term in excess of 10 years in duration, Lessee
promises and agrees to maintain the structure described on Exhibit "A" attached
hereto and incorporated herein by this reference. Lessee agrees that, should
Lessee fail to maintain the structure described in Exhibit "A", this lease shall
automatically terminate and Lessee forfeits any and all interest in the premises.
No construction may be made without prior obtaining of appropriate permits, the
responsibility for which is that of Lessee.
10. REPAIRS: The maintenance and repair of the aircraft hangar structure and other
improvements shall be the responsibility of the Lessee, including utilities within the
leased area.
The Lessee further agrees that it will not commit waste and that it will keep said
premises in a safe, sanitary, neat, presentable, and othenrvise good 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 and
shall comply with any direction pursuant to law of any public officer or officers who
shall be empowered to enforce local, state and federal rules, regulations and
ordinances upon the Lessee with respect to the said premises or the use, occupancy,
or control thereof and shall not suffer any improper or offensive use of said premises.
11 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
Lessor. The area shall be kept free of all debris, weeds and brush for the term of this
lease. Lessee shall reimburse the Kittitas County Weed Board or Kittitas County
Department of Public Works for any costs incurred in the event that the County Weed
Board or Kittitas County Department of Public Works undertakes noxious weed or
vegetation control measures.
12.INSURANCE: The Lessee shall obtain and maintain in force during the term of this
agreement 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, and shall name the Lessor
as coinsured.
(a) Liability insurance policy shall have the following provisions, at a
minimum:(i) Premises and leased area liability coverage in an
amount not less than $1,000,000 - each occurrence.
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(ii) 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.
(b) Lessee hereby releases Lessor of and from every and all right, claim
and demand that Lessee may hereafter have against Lessor, its
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 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 normal extended coverage clauses
of fire insurance policies, and sustained by Lessee in or io the said
premises and leased area.
The Lessee shall provide the Lessor with a copy of said insurance
policy.
AIRPORT TRAFFIC: lt is understood and agreed that the Lessee's use of said
premises and leased area shall not in any manner interfere or restrict the use of
aircraft landings, take-offs, storage of aircraft, taxiing, and movement of ground
vehicles. Lessee shall comply with all rules and regulations of the Federal Aviation
Administration, Washington State Department of Transportation Aeronautics
Division, and the Kittitas County Airport Standards.
HUNTING: Hunting or discharging of firearms will not be permitted on or from saidpremises or leased area.
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:
(a) lf to Lessor, addressed to
Kittitas County Department of Public Works
411 N. Ruby, Suite #1
Ellensburg, Washington 98926
(b) lf to Lessee, addressed to
VirgilThovson
2119 East l.tAvenue
Ellensburg, Washington 98926
Notice shall be deemed to have been received on the third day after the date of
mailing.
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Notice need be sent to but one Lessee where the Lessee is more than one person
16 ATTORNEY FEES: ln 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 fees which shall be determined and taxed by the court as part
of the costs of such action.
17 RIGHTS OF THE GOVERNMENT: The Lessor ho ds 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.
18 ASSIGNMENT: The Lessee shallnot assign this lease nor sublet any portion thereof
without first obtaining the written consent of the Lessor.
19 HOLD HARMLESS: The Lessee hereby agrees to defend, indemnify and hold
harmless the Lesser 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 said premises and leased area, or caused by the acts or neglect of the
Lessee, his agents or employees.
20. BANKRUPTGY: lt 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, orAssignee forthe benefit of creditors shall not have any rights whatsoever
in the demised premises.
21. DEFAULT:ln the event the Lessee shall fail to comply with any of Lessee's
commitments, duties or responsibilities under this lease, or any of its conditions or
terms as herein stated, the Lessor may terminate this lease by giving ten (10) days
written notice of the conditions or terms being violated. lf said failures are not
corrected within the ten (10)day period, this lease may be terminated and the Lessor
shall be entitled to peaceably retake possession of the premises.
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KITTIT&$ GSUhITY AiRPORT
22. MODIFICATION R TERMINATION DUE TO CHANG ED FEDERAL OR
STATE REGULATIONS: 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 Federal or State 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.
ln 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 term inated.
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.
ln 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.
ln the event of such modification or termination, Lessee agrees 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 against the Lessor for
compensation as occasioned by said modification or termination. Lessee further
agrees that its sole source for recovery for any and all damages would be only
against the Federal or State entity whose regulation necessitated the
mod ification or term ination.
WAIVER: No assent, express or implied, by the Lessor to any breach of any of
Lessee'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.
VENUE: ln the event of 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.
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APPLICABILITY: The 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, successor and assigns.
INTEGRATION: Exhibits and Recitals are inco rporated herein by this reference.
This Lease embodies the entire agreement between the parties with respect to the
subject matter herein contained. No amendments or modifications hereof shall be
enforceable unless in writing, signed by the party to be charged.
NONDISCRIMINATION: 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 othenruise operated on the
said property described in this (deed, license, lease, permit, etc.) for
a purpose for which a DOT program 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 othenryise 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.
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lN WTNESS 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
KITTITAS COU , WASHINGTON
Brett , Chairman
Vice-Chairman
n Deputy Clerk of the Board- Mandy Buchholz
Cory Wright, Commissioner
Approved as to Form
Prosecuting Attorney
LESSEE
I/,;i,/ b. f,-**
Virgil D. Thovson
uJBoard-ktiKjorsvi
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KITTITA$ fr#[JNTY AIRPSRT
The following Exhibits are incorporated by reference:
Exhibit A. Description of Property
Lot H-38 of the Bowers Field Airport Binding Site Plan Amendment BS-18-00001, as
recorded on July 26,2019, in Volume 13, pages 4043, County of Kittitas, State of
Washington.
Containing 6,868.55 square feet or.16 acres more or less
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