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HomeMy WebLinkAboutMemo to ACHA 7-13-16CITY OF * ** ADBURNNancy Backus, Mayor WAS H II NGGTON 25 West Main Street * Auburn WA 98001-4998 * www.auburnwa.gov * 253-931-3000 July 13, 2016 Auburn Condo Hangars Association Attn: Todd Covey & Gene Vezzetti 1402 Auburn Way North # 280 Auburn, WA 98002 Re: Notice of differing Premises square footage, rent deficiency and proposal of a Second Amendment to Lease between the City of Auburn and Aviation Properties, Inc. To: Todd Covey, President and Gene Vezzetti, Treasurer, An internal audit by the City of Auburn (CITY) has revealed a discrepancy between the land square footage under lease between Aviation Properties, Inc. and the City of Auburn via Resolution No. 3353 depicted in Paragraph 1(a) and the square footage depicted on both the legal description and site plan, denoted as Exhibits A-1 (legal description) and A-2 (site plan) also noted in Paragraph 1(a) of the lease agreement. The square footage mentioned in Paragraph 1(a) denotes a square footage amount of 147,766 square feet while both the legal description and site plan state a square footage amount of 149,175 square feet. Our records further show throughout the entirety of the lease Aviation Properties, Inc. and then Auburn Condo Hangars Association ("ACHA") have been paying the yearly lease rate calculated off of the 147,766 square footage, not the legally described square footage of 149,175 whereby creating a deficiency in the amount of rent owed to the CITY by an amount of roughly $6,357.80. To be sure an error wasn't made in the square footage calculations denoted on the legal description and site plan, the CITY'S survey department verified that the legal description matched that depicted on the site plan as well as verified that the 149,175 square feet depicted on both is in fact the correct square footage. I propose that the Mayor and Airport Manager not pursue any previously deficient amount of rent owed to the CITY, but that this document hereby serves to give notice that beginning October 1, 2016 the Auburn Condo Hangars Association must begin paying the current and any future lease rental rate(s) calculated on the actual, legally described square footage of 149,175 or be considered to be in default of the Lease. Based on the 2016 rent rate of $0.36648 per square foot, the monthly base rent beginning October 1, 2016 will be $4,555.80. AUBURN *MORE THAN YOU IMAGINED CITY OF AUBURN WASHINGTON Nancy Backus, Mayor 25 West Main Street* Auburn WA 98001-4998 * www.auburnwa.gov * 253-931-3000 If this tact is acceptable to ACHA please proceed with execution of the included addendum(s), entitled "Second Addendum to the Lease Agreement between the City of Auburn and Aviation Properties, Inc." and return them, fully executed and notarized, to the CITY, Attn.: Josh Arndt, 25 West Main St., Auburn, WA 98001 no later than August 31, 2016. Execution of the addendum(s) will not only serve as ACHA's acknowledgement, acceptance and correction of the issue above, but also eliminate any further confusion by amending the square footage amount shown in Paragraph 1(a) of the original Lease to match that denoted in Exhibits A-1 (legal description) and A-2 (site plan). If the CITY has not received the included addendum(s), fully executed and notarized, by the August 31, 2016 deadline, then the CITY shall consider the resolution to this matter hereby put forth by the CITY, unacceptable by ACHA, and the CITY shall seek all deficiencies and damages afforded to it by law. If you have any questions or concerns regarding this matter I can be reached at 253.288.4325 or via email at Jarndt a,aubumwa.gov Thank you, 6AIV Josh Arndt Real Property Analyst City of Auburn Cc: Kevin Snyder Dan Heid Jamelle Garcia Gene Vezzetti Todd Covey AUBURN *MORE THAN YOU IMAGINED