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Home My WebLink About5562 RESOLUTION NO. 5562 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, AUTHORIZING THE MAYOR TO NEGOTIATE AND EXECUTE, ON BEHALF OF THE CITY, AN AIRPORT PROPERTY LEASE WITH SPANAFLIGHT LLC WHEREAS, The Auburn Municipal Airport has office space, land and aircraft toe downs available for lease to private airport-related businesses; and WHEREAS, SpanaFlight LLC's existing airport lease is set to expire on December 31, 2020; and WHEREAS, SpanaFlight LLC desires to remain a tenant on the airport and the City also desires for SpanaFlight LLC to remain a tenant on the airport; and WHEREAS, to improve operations on the airport the City and SpanaFlight will enter into a new lease immediately following the expiration of the now existing lease. The new lease being at a new location on the airport; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, HEREBY RESOLVES as follows: Section 1. The Mayor is authorized to negotiate and execute a lease between the City of Auburn and SpanaFlight LLC, which shall be in substantial conformity with the attached "Term Sheet". Section 2. The Mayor is authorized to negotiate for the increase or decrease the Premises leased in order to accommodate the future needs and desires of the Airport and/or Tenant. Section 3. The Mayor is authorized to implement those administrative procedures necessary to carry out the directives of this legislation. Resolution No. 5562 November 9, 2020 Page 1 of 2 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 KICY B US, MAYOR ATTEST: APPROVED AS TO FORM: Shawn Campbell, MMC, City Clerk Ke dra Comeau, City Attorney Resolution No. 5562 November 9, 2020 Page 2 of 2 * / u B I `I RN Nancy Backus,Mayor WASHINGTON 251,00Maw,5oeet•AarburnWAWOG,40613• w«re.,,bumv*por•251-931.3000 SpanaFlight Terms for Auburn Airport Lease November 13,2020 SpanaFlight Atm:Doug Miller Term Sheet Premises: Instr.Office g 2&Flight Planning Room in the Airport Administration Building Instr.Office ttl in the Airport Administration Building,subject to a successful amendment of lease between City of Auburn and Normandy Aircraft The above are together depicted in Exhibit A Up to Twenty(20)hours a week use of the Administration Building's Class Room(to be scheduled in advance with the Airport office) 2,400 square feet of land located as depicted in Exhibit B Two(2)Airport tie-downs at a location mutually agreed to by the Parties Tenant is taking the Premises as-is,where-is Modular Building Landlord acknowledges and agrees to allow Tenant to locate a temporary modular building no larger than 20'x 32'in a location and orientation approved by Landlord within the Tenants Land Lease Area. Tenant is responsible for the full cost and expense of bringing in and establishing the modular building,and repairing any damage to Airport facilities that may result from bringing in,setting up or the removal from the Airport.This includes,but is not limited to,all costs associated with transportation,set up,removal,rental and insurance costs,utility hook ups,establishing and maintaining of utility accounts,and any costs to remove,reconfigure and replace the Airport perimeter fencing as may be allowed by Landlord. Term(s): Three(3)year initial term,commencing on January 1,2021 Three(3)consecutive three-year option terms Base Rental Kate: SI,635.00 per month Administration All usage,maintenance and utilities in the Airport Administration Common Areas building common areas are included as part of the Base Rental Rate. Maintenance.I '.age& I tilities Security Fee& A monthly security fee in the amount of$20.00 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 CPI-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 1.2022. 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. Landlord Administration Building: Maintenance Exterior: Responsibilities: Landlord,at their own cost and expense,will be responsible for maintaining the building's foundations,adjacent sidewalks, landscaping,exterior walls,windows,roof,gutters,downspouts and utility connections(excluding internet and communication systems and services),unless damage is caused by negligence on behalf of the Tenant,in which case Tenant shall be responsible for repair at their own expense and in a timely manner. Interior: Landlord,at their own cost and expense.will be responsible for maintaining the building's interior walls,flooring,electrical system. lighting,lighting fixtures,plumbing,plumbing fixtures and interior doors,unless damage is caused by negligence of the Tenant,in which case Tenant will be responsible for repair at their own expense. Janitorial: Landlord,at their own cost and expense will be responsible for all janitorial,except those areas occupied exclusively by Tenant. Tenant's Land Lease Area Lessor,at their own cost and expense,will maintain that portion of the Tenant's land lease area not disturbed or covered by the Tenant's modular building.Landlord will also be responsible for ongoing maintenance of the existing perimeter fencing,as may be modified by Tenant. Tenant Maintenance Administration Building Responsibilities Tenant,at their own cost and expense,will be responsible for their own set up and maintenance of their intemet and communication system and services.Tenant will also be responsible for any modifications that may be made to their premises and any repairs or maintenance required as a result of Tenant's negligence. Modular Building Tenant,at their own cost and expense,will be responsible for all maintenance to the interior,exterior and utility hookups. Land Lease Area Tenant will keep the land lease area clean and tree of trash,debris or refuse at all times. Janitorial Tenant will be solely responsible,at their own cost,for all janitorial service and supplies for those spaces exclusively occupied by Tenant. • Utilities: All utilities,with the exception of internet and communications systems and services,in the Administration Building are included in the Base Rent.Tenant is responsible for establishing direct accounts for their own communications systems. Tenant is responsible for the establishment of all utility accounts associated with the modular building. Uses: Flight Training and Aircraft rentals Expansion within Landlord acknowledges Tenant's desire to expand their Premises Administration within the Airport Administration Building as space becomes Building available. Included as part of Tenant's existing Lease,Tenant shall be granted "First Opportunity"to lease any space that may become available during the initial or any extended term of Tenant's Lease.Both Parties agree to negotiate terms for the expansion space in good faith. 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. Each party by signing below acknowledges and agrees to the terms as set forth above. Tenant Landlord Signa Signature: I • 41111 tolop Print Name:tbuaj, i • M r I ler Print Name:Allh_c, Title: 'Pecs:St ,t r G,0 .6 Title: _ , , Date: I I - I jp. 2-o,265 Date: 1 tt 5411.1320 Exhibit A SpanaFlight Premises in the Airport Administration Building e.4'-c." v d.o i if C!" 6'S" ,z'-.o 29 4ti 2'.y e O r 5•. e-,o da ,¢no G•f d 5 ' 51."ACO.aT B t 1 C .� I 1. .loM w.. ' Mwe �_ E O tyi4-"�••,• '1 ' nr.e- ._ 1NET<. _ . OFFICE ;I 'i, I p y .P ` o I •r G I z I b Vis] .®�.... ro..�,iii ,00e,..w «stia ^- - O¢GZiD0,2. -a--°�, v c •o s • ....v,•.we a� e.c .4 I c ., 20 a 4-a ,i.:^" e y ,o memose 0641. 11.....9 /4'"‘":;:i.'::-..."'".2::::'ttt__ _0—.r I *iio - s-d C FUTURE OFFICE '.M CLASS QOOM ° LOl3PSY �� C�ERiCP,'L J P v,�,s»eo) 6 s T� a COUNTER i, ��°` ALTERNATE I ALTERNATE* ^^' J�tie: � r" -s '- --- aCC1 T I:VE 2 o A C C I T I V E 1 m i o - Lowe."..... :'0 P / e y 4-5' G.5 B-Z v o i o 2 5 2 r2:4 .....____—__..�._-- / ,a 0 03-2 6E 4: Subject to a successful amendment of the Normandy Aircraft lease EXHIBIT B Land Lease Area w L 3� jqp" A17----'' fyanaFl�ghl I:uW lease Area •° _ Airport Admin/506 Building Approa dOh x 60R r t ' 1:1,''''',.:«,„d 2,400sgft .. gam. t)r