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Home My WebLink About5580 RESOLUTION NO. 5580 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 LAND LEASE WITH MD 500 DEVELOPMENT, LLC WHEREAS, The Auburn Municipal Airport has land identified in its 2015 Airport Master Plan for the development of aircraft hangars; and WHEREAS, MD 500 Development LLC has expressed interest in developing hangars on the Airport Master Plan's SE development site; and WHEREAS, Construction of the proposed hangars would help satisfy both a local and regional demand while also bringing added revenue to the airport and a positive economic impact to the City; 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 two separate land leases (Site A and Site B) between the City of Auburn and MD 500 Development LLC, which shall be in substantial conformity with the attached "Term Sheet". Section 2. The Mayor is authorized to implement those administrative procedures necessary to carry out the directives of this legislation. Section 3. MD 500 Development, LLC as tenant is authorized to sublease the individual hangar units to different aeronautical users. Section 4. This resolution will take effect and be in full force on passage and signatures. Resolution No. 5580 January 5, 2021 Page 1 of 2 Dated and Signed: January 19, 2020 CITY OF AUBURN A CY KUS, MAYOR ATTEST: APPROVED AS TO FORM: , ` �� c-t Yin � '�` \ �k Shawn Campbell, MMC, City Clerk Kendra Comeau, City Attorney Resolution No 5580 January 5, 2021 Page 2 of 2 DocuSign Envelope ID:742AA2D2-D23F-45A1-86B4-B670A4FAEF3D CITY OF * ** AUBURN Nancy Backus,Mayor WASHINGTON 25 West Main Street * Auburn WA 98001-4998*www.auburnwa.gov* 253-931-3000 Auburn Airport Land Lease(s)/ SE Development Site January 5, 2021 MD 500 Development LLC as "Tenant" Term Sheet Premises: Site A: 34,158 +/- square feet Site B: 71,800+/- square feet Together depicted in Exhibit A Site A& B to each be governed by separate lease agreements Term: The term will run for 30 years following Lease Commencement Lease Rate: $0.825/sq ft./yr. Lease payments for each site to begin upon the earlier of the City's issuance of an ACC 15.07.100 Certificate of Occupancy for that site or May 1, 2022 whichever comes first, Leasehold Tax: The City shall impose and collect the RCW 82.29A Leasehold Tax of 12.84%on the Tenant's taxable monthly rental payments. Lease Rate Adjusted annually by CPI-W August over August. Except in those Adjustment Schedule years where rates are adjusted by the Fair Market Value appraisals. (Post Construction) Fair Market Value (FMV) adjustment January 1 of Calendar years ending in "0"& "5"with first FMV adjustment to begin January 1, 2025. FMV will be determined by an appraisal conducted by an MAI certified appraiser commissioned by and at the expense of the Landlord no more than 12 months prior to the date the new FMV rate shall take effect. In no event shall the new rate, (as determined by either a negative CPI or the most current appraisal) be less than the then current existing rate. Improvement Tenant will submit improvement construction plans that fully comply Type: with City of Auburn and/or FAA standards for Airport development and hangar construction. Hangars must meet a minimum unit count, size and quality standard for the following sites: AUBURN * MORE THAN YOU IMAGINED DocuSign Envelope ID:742AA2D2-D23F-45A1-86B4-B670A4FAEF3D CITY OF * * 1\1J13TJJN1 Nancy Backus,Mayor WASHINGTON 25 West Main Street * Auburn WA 98001-4998*www.auburnwa.gov * 253-931-3000 Site A: Nested T-Hangars with a building footprint roughly 437ft in width by 60ft in depth consisting of no less than 17 individual units. Individual units will have electric doors no less than 48ft of clear width andl4ft of clear height. Amenities to be included: Single power meter with sub-meter capacity for each unit, compressed air available for each unit, fully insulated walls and ceiling in each unit, a building restroom and Wi-Fi. Site B: Box Hangars with a building footprint roughly 390ft in width by 62ft in depth consisting of no less than 6 individual units. Individual units will have a minimum width of 65ft with doors electric doors having no less than 59ft of clear width and no less than 16ft of clear height. Other amenities to be included in each unit include: Individually metered three-phase 208V power w/additional upgrade capacity, individually metered water, reduced backflow prevention, fully insulated walls and ceiling, plumbing stubs for restroom (sink& latrine)and structural integrity to accommodate future mezzanines. Improvement Improvements for both sites to be developed and constructed Development simultaneously under the same construction schedule. Commencement & Civil development to begin no later than May 1, 2021. Schedule Ownership of Ownership of all site improvements shall revert to the landlord upon Improvements Lease termination or expiration. City shall have no ownership or leasehold interest in the constructed improvements contemplated in these leases unless and until a lease expires or is terminated by the Parties. Condominiumization: Tenant shall not condominiumize any of the Hangars without City written approval, given at the City's sole discretion. Asphalt and Tenant is responsible for the Asphalt and Pavement Maintenance for Pavement the vehicle parking and apron areas located within the lease premises. Maintenance Airport Design Prior to submitting construction plans to the City of Auburn for Review permitting, Airport and Tenant will work together to establish a legal and acceptable design for the proposed Hangars. Landlord Approval Tenant shall submit to Landlord a request for approval of any proposed of Subtenants: subtenant,tenant wishes to sublease a unit in Site B to. At a minimum Tenant's request for sublease consent shall include: • Name of the proposed subtenant • Use of the subleased space • Copy of the proposed Sublease terms AUBURN * MORE THAN YOU IMAGINED DocuSign Envelope ID:742AA2D2-D23F-45A1-8684-B670A4FAEF3D C1TY OF AT TBT RN Nancy Backus,Mayor v WASHINGTONI25 West Main Street * Auburn WA 98001-4998*www.auburnwa.gov * 253-931-3000 • Subleases financial statements including: (previous two years of tax returns & 12 months of bank statements) Part 77 requirements All Hangar construction shall meet 14 C.F.R. Part 77 requirements Minimum Airport This lease and any subleases will be subject to City of Auburn policies Standards & 100-80 and 100-81 (Airport Rules& Regulations), as currently written Aeronautical Uses or hereafter amended. All hangars must be used solely for aeronautical purposes per FAA policy(81 FR 38906) Auburn City Council: The terms contained within are subject to the ratification as may be amended of the Auburn City Council. Both parties will take reasonable steps to execute a formal lease being in substantial conformity to the agreed upon terms within 60 days of Council's approval. Each party by signing below acknowledges and agrees to the terms as set forth above. Tenant Landlord r �DocuSigned by: Signature: I J 66,1f Signature: A •. .._ . D3D2DDO7F1AC4DB_. Print Name: Scott Griffin Print Name: • 1_ *'_ . Partner Title: Title: MOItir 1/5/2021 Date: Date: 1 ' ' AUBURN * MORE THAN YOU IMAGINED DocuSign Envelope ID:742AA2D2-D23F-45A1-8684-B670A4FAEF3D Cover Sheet Exhibit A to the Term Sheet Site A & B Land Lease Depictions (Term Sheet between MD 500 Development LLC & City of Auburn) 0•. •• ID:742AA2D2-023F-45A1 8684-B870A4FAEF3D / • .', . . .. i ,r--m . : L.L.2.,ail-,3 -\ _ =-_ ''AL' /- , .. 5 Roo. sr�i F I L e. 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