HomeMy WebLinkAbout5560 RESOLUTION NO. 5560
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
AUBURN, WASHINGTON, RELATING TO AN AIRPORT
LEASE AND AUTHORIZING THE MAYOR TO NEGOTIATE
AND EXECUTE AN AIRPORT OFFICE AND TIE DOWN
LEASE WITH CLASSIC HELICOPTER CORP
WHEREAS, The Auburn Municipal Airport has office space and aircraft tie downs
available for lease to private airport-related businesses; and
WHEREAS, Classic Helicopter Corp currently leases on a month to month basis,
a small office within the Airport Administration building and a single tie down on the field,
authorized by Resolution 5489; and
WHEREAS, an existing lease for the Airport modular building located at 400 23rd
Street NE, commonly referred to as the "400 building" is set to expire on December 31,
2020; and
WHEREAS, following the expiration of the existing lease, Classic Helicopter Corp;
is interested in leasing the 400 building and seven (7) tie down spaces for their aircraft
rental, flight instruction and scenic tours business on a long term basis; and
WHEREAS, the public, the Airport and airport customers benefit from having
Classic Helicopter Corp., located on the airport.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON, RESOLVES as follows:
Section 1. The Mayor is authorized to negotiate and execute a lease between
the City of Auburn and Classic Helicopter Corp., which shall be in substantial conformity
with the attached "Term Sheet".
Resolution No. 5560
November 5, 2020
Page 1 of 2 Rev.2019
Section 2. The Mayor is authorized to amend this lease to increase the number
of tie downs at an additional expense should Classic Helicopter Corp. express the desire
to do so, and additional tie downs are available.
Section 3. The Mayor is authorized to implement those administrative
procedures necessary to carry out the directives of this legislation.
Section 4. This Resolution will take effect and be in full force on passage and
signatures.
Dated and Signed: December 7, 2020
CITY OF AUBURN
NANCY : • , es, MAYOR
ATTEST: APPROVED AS TO FORM:
CtA-W2t
Shawn Campbell, MMC, City Clerk Kendra Comeau, City Attorney
Resolution No. 5560
November 5, 2020
Page 2 of 2 Rev. 2019
CITY OF *T T •
\1iJ BURN Nancy Backus,Mayor
WASHINGTON "ti' 'Mal Star Auhurc WA 9800,4998 3 www.auburrmwa.gov*253-931-3000
Classic Helicopter terms for the 400 building at the Auburn Airport
September 1,2020
Classic Helicopter Corporation
Attn:Dan Dolan
Term Sheet
Premises: 400 23rd St NE—Commonly referred to as the"400 building"together
with non-exclusive use of the parking lot located to the east of the
building.
Seven(7)tie-downs depicted in attached Exhibit A.
Tenant is taking the Premises As-is,where-is.
Term(s): Three(3)year initial term,commencing on January 1,2021
Two(2)consecutive three year option terms
Base Rental Rate: $1,550.00 per month.
Security Fee& A monthly security fee in the amount of$10.00 will be charged in
Leasehold Tax: addition to the Base Rental Rate as part of your gross rent obligations.
A State mandated Leasehold Tax in the amount of 12.84%will be
charged to the gross monthly rental payments.
Rental Adjustments: Lease rate during the initial term will be subject to annual rental
adjustments based on CP1-W from August to August of the previous
year with a maximum increase not to exceed 5%.A negative CPI
adjustment will not constitute a reduction in the rental rate.The first
rental adjustment to be assessed beginning January 1a,2022.
Landlord and Tenant shall negotiate in good faith a new rental rate for
each option term(s)the parties enter into.At no time will the base rent
for the option term be less than the then current rental rate.
AUBURN * MORE THAN YOU IMAGINED
AClIyOf
. IUBURN Nancy Backus,Mayor
WASH I NGTON 25 West Main Street•Auburn WA 98001-4998*www.auburnwa.gov*253 931-3000
Maintenance Lessor,at their own cost and expense will be responsible for
Responsibilities: maintaining the foundations,adjacent sidewalks,exterior walls,
windows,roof,gutters and downspouts,unless damage is caused by
negligence on behalf of the Lessee in which case Lessee shall be
responsible for repair at their own expense and in a timely manner.
Lessor at their own cost and expense is responsible for the care and
maintenance of all Airport perimeter fencing and Airport accesses
gates(vehicular&pedestrian),with the exception of the doorbell and
remote notification and access system that opens pedestrian gate
adjacent the 400 building which shall be the responsibility of the
Lessee.
Lessee,at their own cost and expense will be responsible for all
interior repairs and maintenance of the 400 building including,but not
limited to:interior walls,floors,electrical located within the 400
building,plumbing and plumbing fixtures located within the 400
building,heating and air conditioning equipment,unless damage is
caused by negligence on behalf of Lessor.
Lessee is also responsible for maintaining the doorbell and remote
notification&access system only that opens the pedestrian access gate
adjacent the 400 building.
Lessee is solely responsible for securing,maintaining and expense of
their own janitorial.
Utilities: Lessee shall be responsible for establishing direct accounts with the
City of Auburn and any other public or private providers of utilities as
appropriate.Such utilities shall include but not be limited to:power,
water,sewer,storm,garbage,phone&Internet.
Uses: Aircraft rental,Flight instruction&Helicopter tours.
Auburn City Council: The terms contained within are subject to the ratification of the Auburn
City Council.If approved both parties will take reasonable steps to
execute a formal lease based in substantial conformity to the terms
contained within this term sheet.
AUBURN* MORE THAN YOU IMAGINED
CITY 01 • ••
AU B U 1 J Nancy Backus,Mayor
WASHINGTON 25 West Main Street*Auburn WA 98001-4998*www.auburnwa.gov*253-931-3000
[SIGNATURES ON FOLLOWING PAGE]
Each party by signing below acknowledges and agrees to the terms as set firth above.
Tenant Landlord((
g >�1 Signature: ► ' •\.� SII�"._
Signature: --�L��,v� rt��
Print Name: ban,€1 Print Name: ik ,
Title: PCe5,cJ'Est 1 Title: Moire
Date: 0`?/°3/40, o Date: I rl el
AUBURN* MORE THAN YOU IMAGINED
CLASSIC HELICOPTER TERM SHEET
EXHIBIT A k
.1 It— J ' v- xr
1 2 ++ 3 4 6 f f Fit!
Office c '
EXTENSION OPTION 1 OF 2
AIRPORT LEASE AGREEMENT BETWEEN THE CITY OF AUBURN
AND CLASSIC HELICOPTER CORP.
I. RECITALS:
1. The City of Auburn ("Landlord"or"City") and Classic Helicopter Corp., ("Tenant"or
"Classic") entered into a Lease Agreement dated December 16, 2020 (Resolution 5560),
and later amended on September 30, 2021 (collectively the"Lease")
2. Paragraph 2.2 of the Lease provided Classic the opportunity to extend the Term for three
(3)years, two (2) consecutive times ("Extension Options")by delivering written notice to
the City within a defined time period. If Tenant timely delivered such notice,then the
Parties would negotiate"Option Rent" as described in Paragraph 3.3 of the Lease.
3. On August 31, 2024,the Tenant timely delivered notice to the City to exercise the lst of 2
available Extension Options. On September 11, 2024,the City proposed Extension
Option terms to the Tenant.The Tenant approved said terms via an October 18, 2024
email from Daniel Dolan (Owner of Classic Helicopter)to the City of Auburn's Real
Estate Manager-Josh Arndt, and Airport Manager-Tim Mensonides.
II.AGREEMENT:
NOW THEREFORE the Parties agree to the following terms and conditions which shall
supersede those same defined terms in the Lease.All other terms and conditions not specifically
accounted for in this Extension Option shall remain the same.
1. The Term shall terminate at midnight on December 31,2027.
2. Monthly"Rent" shall be charged in accordance with the following table:
Year Base Rent BR LET Security Fee SF LET Ninthly Tot
Current $1,782.74 $228.90 $10.00 $128 $2,022.92
2025 $1,818.39 $233.48 $10_00 $1.28 $2,063.16
2026 $1,854.76 $238.15 $10.00 $1.28 $2,104.19
2027 $1,891.86 $242.91 $10_00 $128 $2,146.05
3. Lease paragraph 3.4—Rent Adjustments introduced in the September 30, 2021, dated
First Amendment to the Lease is temporarily suspended for the period of time described
in the table above.
Extension Option I of 2
Lease Agreement between City of Auburn and Classic Helicopter Corp., Page 1 of 3
Dated and Signed thisr- day of y1/� 20ALi
Classic Helicopter Corp.,:
Dan Dol , resident
STATE OF WASHINGTON )
) ss.
County of KA N )
The undersigned Notary Public hereby certifies:That on thisA day of(QCO --_
20A I'personally appeared before me t� DO (name),
1 1 (title),to me known to be the individual(s)described in
and who executed the within instrument, and acknowledged that he/she signed and sealed the same
as his/her free and voluntary act and deed, for the purposes and uses therein mentioned, and on
oath stated that he/she was duly authorized to execute said document on behalf of
cL,LPSS LC, 1 \O-Co prL G2-.0 m2
In Witness Whereof I have hereunto set my hand and affixed my official seal the day and
year fi a o written.
ANGELA ELIZABETH KLEIN
Notary Public
State of Washington
Commission #21027Q04 N tart' ubli 'in and a State of Washington,
jMYrnrnxPffesSeP2om
Residing at I/l I �/l)5�
My commission expires ' E'. 17 Of.D-S
Extension Option 1 of 2
Lease Agreement between City ofAuburn and Classic Helicopter Corp., Page 2 of 3
Dated and Signed this ?j\ day of DOObe@( , 20 214
CITY OF AUBURN:
4. )
NANCY BA ':`:! ayor
Approved .: o form:
4111., 44, J
C(ty Attorney: Jason Whalen
•
STATE OF WASHINGTON )
) ss.
County of K I N C1 )
The undersigned Notary Public hereby certifies:That on this •3\ day of 0C-ktber
20 2'4 ,personally appeared before me 3 X\UA BCtC U S (name),
MaMoY (title),to me kniown to be the individual(s)described in
and who executed-the within instrument, and acknowledged that he/she signed and sealed the same
as his/her free and voluntary act and deed,for the purposes and uses therein mentioned, and on
oath stated that he/she was duly authorized to execute said document on behalf of
`tht G Ok ctA U fl .
In Witness Whereof I have hereunto set my hand and affixed my official seal the day and year first
above written. 4Ar.44A.,
•
Notary Public Notary Public in and for the State of Washington,
State of Washington Residing at P A 9UY6\ ) W n
HANNAH SCHOLL
LICENSE#202199 My commission expires DR- -20-2-(4
MY COMMISSION EXPIRES
SEPTEMBER 19,2026
Extension Option 1 of 2
Lease Agreement between City of Auburn and Classic Helicopter Corp., Page 3 of 3