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Home My WebLink About5392RESOLUTION NO. 5 3 9 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, AUTHORIZING THE MAYOR TO EXECUTE AN AMENDMENT TO THE LEASE AGREEMENT BETWEEN THE CITY OF AUBURN AND CLASSIC HELICOPTER CORPORATION WHEREAS, the City and Classic Helicopter Corporation ("Classic") entered into a Lease Agreement for building and land, which commenced on June 10, 2016 and was approved by Resolution 5227; and WHEREAS, the lease required Classic to develop hangar space, periodically meeting performance measures and timelines; and WHEREAS, Classic has not met the required performance measures and timelines, and no longer desires to improve the land; and WHEREAS, the City desires to convert a portion of the building that is currently leased to Classic to an office for the Airport Manager; and WHERAS, it is in the City's interest to amend the lease to achieve both objectives. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, RESOLVES as follows: Section 1. The Mayor is authorized to execute an amendment to the lease agreement between the City of Auburn and Classic Helicopter Corporation dated June 10, 2016, which amendment shall be in substantial conformity to the " 1 st Addendum" to the Lease Agreement," which is attached as Exhibit "A'. Section 2. The Mayor is authorized to implement those administrative procedures necessary to carry out the directives of this legislation. Resolution No. (Date) Page 1 of 2 Section 3. This Resolution will take effect and be in full force on passage and signatures hereon. Dated and Signed this day of 2018. ATTEST: ��a.�� Cc—r r. Shawn M. Campbell, MMC, City Clerk APPROVED AS TO FORM: Steven L. Gross, City Attorney Resolution No. (Date) Page 2 of 2 CITY OF AUBURN we I M117PATa jff',Wls, Px�(OR IST ADDENDUM TO THE LEASE AGREEMENT BETWEEN THE CITY OF AUBURN AND CLASSIC HELICOPTER CORPORATION RELATING TO THE AUBURN MUNICIPAL AIRPORT THIS ADDENDUM is made and entered into this -:a;� day of o -_ 2018, by and between the CITY OF AUBURN, a municipal corporation of the State of Washington ("City"), and Classic Helicopter Corporation ("Lessee"). WITNESSETH: WHEREAS, The City and Classic Helicopter Corporation entered into a Lease Agreement for building and land, which commenced on June 10, 2016 and was approved under Resolution 5227; and WHEREAS, The parties also executed a separate "Future Development Agreement," which was incorporated into the Lease Agreement as Exhibit C; and WHEREAS, The Future Development Agreement set forth certain performance measures and timelines Lessee was required to meet to stay in compliance with the Lease Agreement; and WHEREAS, On September 7, 2017 the Parties executed an addendum to the Future Development Agreement to delay the timelines for all performance measures by one year; and WHEREAS, Lessee did not meet the revised performance measure timelines and defaulted on the amended lease on June 30, 2018; and WHEREAS, The City desires to take back a portion of the office space in the 506 building currently leased to Lessee for the future office of The City's Airport Manager; and WHEREAS, The City values its relationship with Classic Helicopter Corporation and Classic Helicopter Corporation values its relationship with the City, NOW THEREFORE in consideration of their mutual covenants, conditions and promises, the PARTIES HERETO HEREBY AGREE as follows: Upon execution of this Addendum or December 10, 2018, whichever is later, the following paragraphs and/or exhibits shall be replaced, amended, stricken and/or added as follows: 1. Paragraph 1.1 shall be replaced with the following: For and in consideration of the rent and faithful performance by Lessee of the terms and conditions and the mutual covenants hereof, City does hereby lease to Lessee, and Lessee does hereby lease from Lessor, 1,050 square feet in the 506 building which shall include: Back East Room/510, Bathroom in the Back East Room, Instr. 1, Instr. 2, and the Flight Planning Room (collectively, the "Improvements'), and Seventeen thousand square feet (17,000) of land legally First Amendment to Lease Agreement between City of Auburn and Classic Helicopter Corporation Original Lease under Resolution 5227 Page 1 described in Exhibit A attached hereto and incorporated herein hereinafter referred to as the "Premises", which Premises consist of approximately eighteen thousand, fifty (18,050) combined square feet of office and land, as depicted on the Site Plan(s) attached hereto as Fvhihite u -t ') (SnF h,,;leiina) and R-2 !land Areal incorporated by this reference. The Premises are situated in the County of King, State of Washington, and are located at the Auburn Municipal Airport (the "Airport"). 2. Paragraph 1. S "Common Areas " shall be replaced with the following: Common Areas - Certain areas totaling 707 square feet located within the 506 building are defined as "Common Areas" and are depicted in Exhibit B, these areas include: The front lobby (190 sqft), corridors (242 sqft), public restrooms (146 sqft), storage closet (41 sqft), kitchen area (77 sqft) and coat closet (I1 sqft). Common Areas are assessed a maintenance fee of $12.81 per square foot per year. Lessees are charged a percentage of the total per square foot maintenance fee in accordance with each Lessees percentage of the total leased space, excluding the common areas. Classic Helicopters percentage of the total leased space per there leased space in the 506 building is be 51% and shall therefore be assessed $6.53 per square foot, per year for the common area maintenance. Maintenance items included for the common areas shall include but not be limited to: Maintenance of common areas including paint, carpet, wall repair, ceilings, light fixtures, bulb replacement, bathroom supplies and toiletries, kitchen area maintenance and janitorial services of the common areas. Adjustments for assessment charged for the common area space shall be adjusted based upon the annual CPI adjustment and in the same manner outlined in Section 3.2. 3. Exhibit B-1 and all references thereto shall be replaced with Exhibit B-1.2. A copy of which is hereby attached to this addendum and incorporated into the Lease Agreement by this reference. 4. Article 8, Airport Future Development Agreement, any addendums to the Future Development Agreement and Exhibit C are stricken from the Lease Agreement. S. A new paragraph 20.13 is added to the Lease to read as follows: "Lessee promises not to make, in any form or manner, a complaint or report to the FAA regarding Lessor's operation, management, or use of the Airport once this Lease expires or terminates. The parties acknowledge that this provision was specifically bargained for by each, and Lessee agrees that its obligation under this paragraph shall survive expiration and termination of the Lease." First Amendment to Lease Agreement between City of Auburn and Classic Helicopter Corporation Original Lease under Resolution 5227 Page 2 ALL OTHER TERMS AND CONDITIONS AGREED TO IN THE LEASE AGREEMENT BETWEEN THE CITY OF AUBURN AND CLASSIC HELICOPTER CORPORATION IN LEASE AGREEMENT DATED JUNE 10, 2016 SHALL REMAIN THE SAME. IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the day and year first above written. [Signatures on the following pages] First Amendment to Lease Agreement between City of Auburn and Classic Helicopter Corporation Original Lease under Resolution 5227 Page 3 Dated and Signed this qday of -0Ecs44#a-S(3 , 2018. Classic Helicopter Corporation: aQ �� F. Greg Baker, Secretary/Treasurer 14F�-IAP ,rssyi. Ao411W r4WA(T STATE OF WASHINGTON ) ) ss. County of 41/vt a,, ) The undersigned Notary Public hereby certifies: That Rn this 16 Aday of odlec , 20$, personally appeared before me _ 9 lwz�.e�2dn� �.mcr J (name), RACIlk Cr rvt_ (title), and (name), (title), to me known to be the individual(s) described in and who executed the within instrument, and acknowledged that he/she/they signed and sealed the same as his/here/their free and voluntary act and deed, for the purposes and uses therein mentioned, and ot oath stated that e/ a/they a Jwere duly authorized to execute said document on behalf of o �i P caaC�e In Witness Whereof I have hereunto set my hand and affixed my official seal the day and year first above written. #fill t.1 aQa s -.4.�.e�2J4. d vn �� Notary Public in and for the State of Washington, o� lorq��+ Residing at _&4. ty o ~- My commission expires Id - � Ai q i �yk�0.09 -'9 4r 0=� ,,Z/�I0'cWAS H`�0It First Amendment to Lease Agreement between City of Auburn and Classic Helicopter Corporation Original Lease under Resolution 5227 Page 4 Dated and Signed this 2L day of 12018. CITY OF AUBURN: ANCY B r S, Mayor APPR�S TO FORM: Steven L. Gross, City Attorney STATE OF WASHINGTON ) ) ss. County of The undersigned Notary Public hereby certifies: That on this day of fl x 20 personally appeared before me (name), (title), and S e V -.Q CZ4 t 5 g (title), to me known to be the individual(s) described in and who executedthe 'thin instrument, and acknowledged that he/she/they signed and sealed the same as his/here/their free and voluntary act and deed, for the purposes and uses therein mentioned, and on oath stated that he/she/they was/were duly authorized to execute said document on behalf of C .`c. In Witness Whereof I have hereunto set my hand and affixed my official seal the day and year first above wt it off = � q\U\UIIII ,2 -o iNSu `4 i � Notary Public in and for the State of Washington, Residing at ra My commission expires 71-y First Amendment to Lease Agreement between City of Auburn and Classic Helicopter Corporation Original Lease under Resolution 5227 Page 5