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HomeMy WebLinkAbout402978 First Amendment to Normandy Aircraft Airport Lease - DocuSign Envelope ID:75D8C459-B000-4554-A5F2-0BAD07573501 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: • 672 square feet in the Airport Administration building located at 2143 E Street NE, Suite 2, Auburn, WA 98002, which includes the Back East Room and its Bathroom, but does not include Instruction 1 Room. This square footage (collectively, the "Improvements") is depicted and incorporated into this Lease as Exhibit A(Amended); and, • 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 • Hangar F-17 and Storage Unit#50 on Airport Property. DocuSign Envelope ID:75D8C459-B000-4554-A5F2-0BAD07573501 This Leased Property 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). These areas include:the front lobby(190 sift;), 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$14.34 per square foot per year. Lessees are charged a percentage of this fee that corresponds to their 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 $4.70 per square foot, per year 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 adjusted based upon the annual CP I adj ustment 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: • $14.34 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 • $0.845 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 DocuSign Envelope ID:75D8C459-B000-4554-A5F2-0BAD07573501 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 Common Area Maintenance and Usage fee is $4.70 per square foot, per year(32.79649%of the$14.34 per square foot rent charge listed above),as Lessee's portion of the Leased Premises Common Areas described in Section 1.1 and legally described and depicted in Exhibits A(Amended).B 1,B=2 and B-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. Lessee shall pay the above charges as rent to Lessor in equal monthly installments of$2,787.00 atthe office of the Airport Manager or at such other office as may be directed in writing by the City, without notice,demand,offset, abatement or deduction ofanykind.Rent shall be due on the 1st 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. [SIGNATURES ON THE FOLLOWING PAGE] DocuSign Envelope ID:75D8C459-B000-4554-A5F2-0BAD07573501 Dated: Dated: /Z/!q/? .t-v . CITY OF AUBURN NORMANDY AIRCRAFT AUBURN MUNICIPAL AIRPORT DocuSigned by: I ff ar kA,5 By `:0c......, k. s[r oP N }sg, 4ayor 12/16/2020 Title Rarct"cc;.--7 Date APPROVED AS TO FORM: Llay ocuSigned by: 1EBotesthe Senior City Staff Attorney DocuSign Envelope ID:75D8C459-BO0O-4554-A5F2-0BAD07573501 RESOLUTION 5564 EXHIBIT A Administration Building 84 . ' 10' C>-5 le-id 6-5 Cow Co'-5Y 4`-5' 12'-10 2-5 Fr-5 2 5 ' -`� 5 -5" . 8- - 5'0 ( LT .#1 ---- ,- 4 G 4( g r..;.� �_ z--- �r.,. ter.. - __ / �- _- C71OE �✓ MN1.0 CAVHr - --. ....�-� .-. pp ---_ 2x£c1T41+Cea. ", ifAnOPA+4 k - NE 9 -..Vr�•N.\ 1 N �1 w9uLA Tl C]N 9AM bKTFZlof7 w . }}`JST - I N�72- rL -9T o,z4ar 'F L. PLAN, .. p a LI \2xt.w.W1L. 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N I� _ ` «,WGMBN-ppILE-1' - 1 - • LIJ " 64.3 /'� 1.`,Avev.,b0.Sh"P. -- CLASS A 5 C,?O O N� N I �� L O 5 E5Y a C I E-I2 I C A L • SUTURE OFFICE T c r (01.4 01S51+ED) ....1 �j,,t is,lANpSLAIL I 4"I I 'J COUNTER, i ALTERNATE ^'� — n TI ALTERNATE III r - lJ W 41 NWG4�e1�6fid- C�_.^ h l� ' GOt& .4 CoptC P4:% 0 d ALT.pp17.#1 g -,(----- - -5', 6_e 8'-1e 6.`-0 3'-0 2 Co'-2' 2'-4 58,-1e 15' a is a —/ 1 e"e — / Normandy Amended to removed from previous Normandy premises Common Area