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Home My WebLink About5564 RESOLUTION NO. 5564 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, AUTHORIZING THE MAYOR TO AMEND A LEASE BETWEEN THE CITY OF AUBURN AIRPORT AND NORMANDY AIRCRAFT WHEREAS, in 2019 the Auburn Municipal Airport ("Airport") and Normandy Aircraft (Normandy) negotiated a five (5) year lease of certain Airport property; WHEREAS, by Resolution No. 5458, the City Council approved a term sheet for the negotiations, and the parties thereafter entered a lease consistent with their negotiations and the Council's Resolution; WHEREAS, after further negotiations, the parties now desire to amend the lease to reduce the square footage Normandy leases from the Airport and Normandy's corresponding rental obligation to the City, and to make other technical rent and cost adjustments called for in the lease; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, RESOLVES as follows: Section 1. The Mayor is authorized to sign Amendment No. 1 to the lease between the Airport and Normandy, which Amendment (and its exhibits) is attached as Exhibit A to this Resolution; Section 2. The Mayor is authorized to implement those administrative procedures necessary to carry out the directives of this Resolution. Section 3. This Resolution will take effect and be in full force on passage and signatures. Resolution No. 5564 November 25, 2020 Page 1 of 2 Rev.2019 Dated and Signed: December 7, 2020 CITY OF AUBURN ANCY CKUS, MA OR ATTEST: APPROVED AS TO FORM: Shawn Campbell, MMC, City Clerk Kendra Comeau, City Attorney Resolution No. 5564 November 25, 2020 Page 2 of 2 Rev.2019 N. Nk ,a/tot-,S ` z�tot-,5 ` o,q \ z.tt-;B \ ?.,it-9 <I <(--.) \ \ A._ . # ; .. :., --- --\- \ . a a<W i I— i .a 1 ; r a, , I— f e-0 L11ei3. EJ2 ro�S i 3Zfu .r-----N- .11-41'-------#- . - -iii•ol' i., c) -""''.I- i.-1 , SLL ,y4,: i'.. ,; m ' \ 9 G _ U — U C s N H u uu I Z�216 L2 t,4\ -_------ i --..- r lD o CA W , Z P. ! 7 .. 7 r�• N d- a1 7 I p. p O a I "d In ++ o µ 0 ,9 0 C� OO v tai "fl 407 A U Z CA / 14°l O" aA- nr 01 t�!J :' t?4 ln 4 • ,n\ �i�1 s h a) cd i 1 4- ',..../. O y!16li 'y1$ �° W "d�..1 A, 3dppF1 Od lS -at.' 1Ur 3 2 O J /fit ll 4 O �u N,. Z L1.� F-- rQ , .< U w -� r� DIzt-p I Q.( 1 r LL i -, I 191 r ,F,-,2.( AMENDMENT NO. 1 CITY OF AUBURN AND NORMANDY AIRCRAFT AIRPORT LEASE AGREEMENT THIS AMENDMENT is made and entered into by and between the City of Auburn(City), and Normandy Aircraft(Normandy)(collectively the Parties),as the 1St Amendment to the Parties' December 26, 2019 Airport Lease Agreement(Lease). I. RECITALS: 1. In the Parties' December 26, 2019 Lease,the City leased certain Auburn Municipal Airport(Airport)real property to Normandy. 2. Paragraph 20.9 of the Lease contemplates mutually agreed amendments to the Lease between the Parties. 3. The Parties desire to amend the Lease to change the Airport property being leased by Normandy, and to adjust Normandy's corresponding rental obligation in Article 3 of the Lease to reflect these changes and the CPI adjustment to rent called for in Paragraph 3.2 of the Lease. II. 1St AMENDMENTS TO DECEMBER 26,2019 LEASE: In consideration of the mutual promises contained in this Amendment and the Lease,the Parties agree to the following Lease amendments, to take effect on and after January 1, 2021: A. Paragraph 1.1 of the Lease is amended to read: 1.1) For and in consideration of the rent and performance by Lessee of the terms and conditions and the mutual covenants in this Lease, Lessor agrees to lease to Lessee,and Lessee agrees to lease the following property from Lessor_ • ,782 672 square feet in the Airport Administration building located at 2143 E Street NE, Suite 2, Auburn, WA 98002, which includes the . Lessees - . ' _ _ .. _ _ . .: : Back East Room and its; Bathroom, but does not include Instruction 1 Room. This square footage in the Back East Reem—and—Instr-7-17 (collectively, the "Improvements") is depicted and incorporated into this Lease as Exhibit A(Amended); and, • together with 19,000 square feet of land legally described and incorporated into this Lease as Exhibit B-1,and depicted and incorporated as Exhibits B-2 and B-3(Exhibits A(Amended),B-1,B-2,and B-3 collectively referred to as the"Premises")- and, . - ' - • - . .. . • . - ', : t • Hangar F-17 and Storage Unit#50 on Airport Property. This Leased Propertye Premises are is situated in the County of King, State of Washington, located at the Auburn Municipal Airport(the "Airport"). B. Paragraph 1.4 of the Lease is amended to read: 1.4) Common Areas- Certain areas totaling 707 square feet located within the Airport Administration building are defined as"Common Areas" and are depicted in Exhibit A(Amended). ;-tThese 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(11 sqft). At commencement of this Lease common areas are assessed a maintenance and use fee of$14.3489 per square foot per year. Lessees are charged a percentage of this fee that corresponds to their -- .. -- - . - -- • . Lessees percentage of the total leased space, excluding the common areas. Normandy's percentage of total leased space within the Airport Administration building is 32.79649%, so their common area maintenance and use fee shall be 38% and shall therefore be assessed $5.31 $4.70 per square foot,per year fer-the common area maintenance and use,but subject to the revisions in Article 3. 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 forthe common area shall be adj usted based upon the annual CPI adjustment and in the same manner outlined in Section 3.2 C. Paragraph 3.1 of the Lease is amended to read: 3.1) Rent and fees/charges -Lessee agrees to pay rent, fees and charges to the Lessor as follows: al base rent of • $14.3499 per square foot, per year for the 672 square feet of leased space in the Airport Administration building; and • $5,184.00/year for Hangar F-17 and Storage Unit#50; and • $0.8425 per square foot, per year for the 19,000 square feet of lease property described in Exhibit B-1; and • A $240/year security fee. Lessee's annual rent for these items totals $31,115.48. From this total, Lessor agrees to subtract $4,800 per year in consideration of Lessee's performance of those "additional services"described and incorporated by Reference as Exhibit C. This "service credit" reduces Lessee's annual rent to $26,315.48. If at any time Lessee ceases to provide all, or a portion of the Additional Services described in Exhibit C Lessee will become responsible for all or a proportionate share of the reduced rent amount from that date onward. Lessee's apron space. Lessee shall also pay a Common Area Maintenance and Usage fee is of-$4.70 per square foot, per year5.31 (32.79649% 38% of the . • . $14.3400 per square foot rent charge listed above),per • . .. - .. , . as Lessee's their portion of the Leased Premises Common Areas_, all together described in Section 1.1 and legally described and depicted in Exhibits A (Amended). B 1, BB=2 and BB=3. Lessee's annual Common Area Maintenance and Usage fee is $3,322,90. Lessee shall pay a 12.84%leasehold excise tax imposed by RCW 82.29A. This tax shall be applied to the total rent, fees and charges listed above in this Paragraph 3.1. Lessee agrees to pay any "Impositions,"including taxes, improvements, levies, assessments, licenses, permit fees and any other charges lienable to the Premises and any of its Improvements. - , • - incorporated by reference as Exhibit C, Lessor credits to Lessee the current base rent value for Instr. 1 in the Administration Building, Lessees share of the common area maintenance and usage fee and the L aschold Excise Tax value charged on the credited rental amounts. If at any time Lessee ceases to provide all, or a portion of the Additional Services described in Exhibit C Lessee will date onward. Beginning at commencement of this Lease, subject to those adjustments and fees in Section 3.2 and 3.3 and in consideration and delivery of the Additional an annual base rent of$25,323.00. In addition to the Annual Base Rent, Lessee shall pay any "Impositions,"which shall include all taxes, improvements, levies, assessments, licenses, permit fees and otherwise charged against and lienable to the Premises and any of its Improvements.This shall expressly include statutory leasehold excise tax imposed by RCW Chapter 82.29A. At commencement all :. - - • . - .. -- - ' - - ..•. Lessee shall pay the above charges as rent to Lessor in equal monthly installments of $2,787.00 $2,381.21 attheofficeof the Airport Manager or at such other office as may be directed in writing by the City, without notice, demand, offset, abatement or deduction of any kind.Rent shall be due on the 1'day of each month in advance. D. Exhibit A of the Lease shall be replaced by the Exhibit A (Amended) attachment to this Amendment, and Exhibit A (Amended) shall be incorporated by reference into the Lease from the date of this Amendment forward. E. Remaining Terms Unchanged. All other provisions of the Original Lease, including all exhibits, attachments and incorporated pages, shall remain unchanged, and in full force and effect. Dated: \' 1/ J O Dated: CITY OF AUBURN NORMANDY AIRCRAFT AUBURN MUNICIPAL AIRPORT By ancy Bac , Mayor Title VirA Date APPROVED AS TO FORM: Harry Boesche Senior City Staff Attorney