HomeMy WebLinkAboutFULL EXEC ACHA Third Amendment - FMV CycleTHIRD AMENDMENT TO THE LEASE AGREEMENT
BETWEEN THE CITY OF AUBURN AND AVIATION PROPERTIES, INC.
THIS AMENDMENT is made and entered into thisN day of
2019, by and between the CITY OF AUBURN, a municipal corporation of the State of
Washington (hereinafter referred to as the "CITY"), and Auburn Condo Hangars Association
(hereinafter referred to as Lessee), as an addendum to the Lease Agreement between the parties
for land located on the Auburn Municipal Airport ("Airport") executed on the 8th day of June,
2001.
WITNESSETH:
WHEREAS, the City of Auburn ("CITY"), and Aviation Properties, Inc. ("API") entered
into a Lease Agreement dated June 8, 2001, a memorandum of which was recorded with the
Auditor of King County, Washington, under Auditor's File No. 20020627002407 on the 27th day
of June, 2002; and
WHEREAS, Pursuant to Paragraph 12 of the Lease Agreement between API and the CITY,
API had the right to create a Condominium Association which was created and recorded with the
Auditor of King County, Washington, under Auditor's File No. 20030415000674; and
WHEREAS, Pursuant to Paragraph 12(b) of the Lease Agreement between API and the
CITY, the Lease was automatically assigned to the Auburn Condo Hangars Association ("ACHA")
for the assumption of all responsibilities under this Lease Agreement; and
WHEREAS, The Lease Agreement has twice been amended; The first dated November
19, 2002 and the second dated August 3, 2016; and
WHEREAS, Sections 5(a) and 5(d) provide for annual periodic rent adjustments
including adjustments based upon "fair market rental value" (FMV) of the Premises,
NOW THEREFORE in consideration of their mutual covenants, conditions and promises,
the Parties agree as follows:
1) Paragraph 5(a) is replaced in its entirety with the following:
• Monthly Base Rent will adjust on January 1, of every year beginning January 1, 2002
during the lease term, per this Section 5. Notwithstanding the foregoing, Monthly Base
Rent will be adjusted every five (5) years, commencing on January 1, 2020, to equal the
"fair market rental value" (FMV) of Auburn Airport land, pursuant to the procedure set
forth in Section 5(d) below. No such adjustment, however will reduce the amount of
Monthly Base Rent below the amount of the respective Monthly Base Rent that is being
adjusted.
Third Amendment to Lease Agreement between COA & Aviation Properties, Inc.
Original Lease approved under Resolution NO. 3353
2) Paragraph 5(d) is replaced in its entirety with the following:
• Each five (5) years, commencing on January 1, 2020, the Monthly Base Rent will be
revised based upon an appraisal establishing fair market rental value of Auburn Airport
land, excluding rental value of any Lessee constructed Improvements. Lessor will retain
and pay the costs of an MAI appraiser. The annual adjustment fonnula set forth in
Sections 5(b) & (c) will not be applied each such fifth (51h) year. Lessor may, at its
discretion, utilize an appraisal completed within 12 months prior to the date of the
periodic five year adjustment. Additionally, this appraisal may be used by Lessor for
setting rates for leases other than this Lease. In the event Lessee disagrees with Lessor's
appraisal, Lessee may, at their own expense, retain a second appraisal. Lessor and Lessee
will then attempt to negotiate a lease rate. If these negotiations are unsuccessful, the
parties will mutually agree on the selection of an arbitrator. The costs of arbitration will
be shared equally. The arbitrator's determination will be based upon the appraisals, but in
no event will the new Monthly Base Rent be lower than the Monthly Base Rent in effect
at the time of arbitration. The decision of the arbitrator regarding the increases will be
final. In the event of ongoing negotiations or arbitration, the determined rental rate will
be made retroactive to January 1 of the current FMV cycle.
[SIGNATURES ON THE FOLLOWING PAGES]
Third Amendment to Lease Agreement between COA & Aviation Properties, Inc.
Original Lease approved under Resolution NO. 3353
Dated and Signed on this ZSZo day ofyGVS1 12019
Auburn Condo Hangars Association
Name:
STATE OF WASHINGTON )
ss.
County of )
CONDO PA5i0E747
Title:
The undersigned Notary Public hereby certifies: That on this V) day of , k ,
20-ft—, personally appeared before me 'ZWjM a,S j�1(y I (dame),
�Qs�i�r (title), tb me known t6be 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
In Witness Whereof I have hereunto set my hand and affixed my official seal the day and
year first above written.
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Third Amendment to Lease Agreement between COA & Aviation Properties, Inc.
Original Lease approved under Resolution NO. 3353
Dated and Signed on this -7°% day of ���� , 2019
City of Auburn
IN It
yor: Nan ackus
Approved a
City Attorney: Steven L. Gross
STATE OF WASHINGTON )
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County of
The undersigned Notary Public hereby certifies: That on this�� day of � k sz ,�
20�, personally appeared before me ��� , r\,.a, ���� (name),
:S: ,� � (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
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In Witness Whereof I have hereunto set my hand and affixed my official seal the day and
year first above written.
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Notary Public in and for the State of Washington,
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Third Amendment to Lease Agreement between COA & Aviation Properties, Inc.
Original Lease approved under Resolution NO. 3353