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HomeMy WebLinkAbout5912RESOLUTION NO. 5912 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, AUTHORIZING THE MAYOR TO EXECUTE ON BEHALF OF THE CITY, A FIRST AMENDMENT TO THE LEASE DATED OCTOBER 7TH, 2024 WITH RAINIER FLIGHT SERVICES, LLC WHEREAS, the City of Auburn ("City") and Rainier Flight Services, LLC, ("Rainier") entered into a lease agreement dated October 7t", 2024, authorized by Resolution 5786 (the "Lease") for office, classroom, and flight training space within the Auburn Municipal Airport's "Administration Building" located at the Auburn Municipal Airport (the "Airport"); and WHEREAS, Rainier has secured additional off -Airport office, classroom, and flight training space, resulting in a portion of the space currently leased in the Administration Building becoming surplus to Rainier's operational needs; and WHEREAS, the City's Airport administrative staff have a need for additional office space to support Airport operations; and WHEREAS, amending the Lease to return a portion of Rainier's leased space within the Administration Building to the City would benefit both parties by aligning Rainier's leased space with their operational needs while also providing needed office space for Airport staff and operations; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, RESOLVES as follows: Section 1. The Mayor is authorized to execute the First Amendment to the Lease Agreement, attached as Exhibit A. Resolution No. 5912 June 26, 2026 Page 1 of 2 Rev. 2026 Section 2. The Mayor is authorized to implement those administrative procedures necessary to carry out the directives of this Resolution. Section 3. The City Clerk is authorized to make necessary corrections to this Resolution including, but not limited to, the correction of scrivener's/clerical errors, references, Resolution numbering, section/subsection numbers, and any references thereto. Section 4. This Resolution will take effect and be in full force on passage and signatures. Dated and Signed this 20th of July, 2026. ATTEST: Shawn Campbell, MMC, City Clerk Resolution No. 5912 June 26, 2026 Page 2 of 2 CITY OF AUBURN Q.Y1C11 _dti► ANCY KUS, MAYOR Io' ason Whalen, City Attorney Rev. 2026 Docusign Envelope ID: 5FF3E7D3-E5C0-8121-83A6-B4F1BC4BC575 FIRST AMENDMENT TO THE AIRPORT LEASE AGREEMENT BETWEEN THE CITY OF AUBURN AND RAINIER FLIGHT SERVICE, LLC THIS FIRST AMENDMENT TO LEASE AGREEMENT ( "Amendment") is entered into this , 2026, ("First Amendment Date") by and between the City of Auburn, a Washington municipal corporation ("Landlord," or "City") and Rainier Flight Service, LLC, a Washington Limited Liability Company ( "Tenant"). RECITALS: 1. The Parties entered a Lease Agreement on October 7, 2024 (the "Lease") for office space in the Auburn Municipal Airport's "Administration Building" located on the Auburn Municipal Airport (the "Airport") authorized through the ratification of Resolution 5786, 2. The Parties mutually desire to amend the Lease under the following terms. 3. This Amendment is authorized by the Auburn City Council through the ratification of Resolution 5912 NOW THEREFORE, the Parties agree to amend the Lease as follows, effective August 1, 2026 ( the "Amendment Effective Date"): 1. Article 1.1 of the Lease is replaced in its entirety with the following: 1.1) In consideration of the rent and performance by Tenant of the terms and conditions and the mutual covenants in this Lease, Landlord agrees to lease to Tenant, and Tenant agrees to lease from Landlord, the "East Room", Office 1, and Office 2 located within the Auburn Airport Administration Building at 2143 E Street NE, Auburn, WA 98002 ("Administration Building") as depicted in Exhibit A. The East Room, Office 1, and Office 2 are individually and collectively the "Premises". The Premises is a portion of King County parcel number 000080-0009, located in the City of Auburn, Washington, at the Auburn Municipal Airport (the "Airport"). 2. Exhibit A to the Lease (depicting the Premises) is replaced with the following new Exhibit A (Airport Administration Building): Rainier Plight Services / COA Lease Agreement dated October T", 2024 (RES 5786) First Amendment RES 5912 Page 1 of 4 Docusign Envelope ID: 5FF3E7D3-E5C0-8121-83A6-B4F1BC48C575 Exhibit A Airport Administration Building Auburn Airport Administration Building Floor Plan 3 AUBURN S MUNICIPAL /�J► Office 93 Khahen AIAP60 AUBURN Lobhy MUNICIPAL Room Rainier Flight Services Administration Building Lease Promises 3. Article 2.2 of the Lease is replaced in its entirety with the following: 2.2) Extension Options. Provided Tenant is not in default under this Lease and has faithfully performed all terms and conditions of this Lease, Tenant may request to extend the then -current Lease term for up to two (2) additional consecutive periods of five (5) years each (each, an "Extension Option"). Each Extension Option shall commence immediately upon expiration of the preceding Lease term, without interruption or delay. Tenant may exercise an Extension Option only by delivering written notice to the City ("Exercise Notice") in accordance with Article 12 between August 1 and August 31 of the final year of the then -current Lease term. Tenant's delivery of an Exercise Notice shall constitute a request to extend the Lease term and shall not automatically extend the Lease. Any Extension Option shall be subject to the City's sole review and written approval, which approval may be granted, conditioned, or denied in the City's sole and absolute discretion. Landlord shall provide Tenant with written notice within ten (10) business days after receipt of Tenant's Exercise Notice, stating whether Landlord approves, denies, or conditions approval of Tenant's request (the "Notice Response"). If Landlord fails to provide a Notice Response within such ten (10) business day period, Tenant's request shall be deemed approved, subject only to the Extension Option Rent provisions set forth in Article 3.4, Each Extension Option is personal to Tenant and may not be assigned or exercised, voluntarily or involuntarily, by or to any other person or entity. In addition, each Extension Option shall be available only to and exercisable by Tenant while Tenant is in actual physical possession of the Premises. Rainier Flight Services / COA Lease Agreement dated October 71I1, 2024 (RES 5786) First Amendment RES 5912 Page 2 of 4 Docusign Envelope ID: 5FF3E7D3-E5C0-8121-83A6-B4F1 BC413C575 4. Article 3.1 of the Lease is replaced in its entirety with the following: 3.1) Effective upon the Amendment Effective Date, the Tenant agrees to pay to the City of Auburn a "Base Rent" of $2,185.46 per month. The Base Rent is inclusive of all common area maintenance and usage fees, and security fees. In addition to the Base Rent, Tenant agrees to pay a statutory leasehold excise tax of 12.84% of the monthly Base Rent imposed by RCW 82.29A. The Base Rent plus leasehold excise tax (together "Rent") at the Amendment Effective Date, is $2.466.07 per month. Tenant shall pay Rent in full at the office of the Airport Manager or at such other office as may be directed in writing by the Landlord, on the 1St calendar day of each month. Rent shall be paid without notice, demand, offset, abatement or deduction of any kind. If this Lease commences or terminates on a date other than the first or last day of the calendar month, then Rent shall be pro -rated on a 30-day per diem basis. 5. A new Article 3.5 is added to the Lease and reads as follows: 3.5) Lease Deposit. Immediately upon execution of this Amendment, Tenant shall deposit with Landlord a "Lease Deposit" of $4,000 which shall be held by Landlord as security for the faithful performance by Tenant of all the terms, covenants and conditions of this Lease to be kept and performed by Tenant and not as an advance rental deposit or as a measure of Landlord's damage in case of Tenant's default. If Tenant defaults with respect to any provision of this Lease, Landlord may use any part of the Lease Deposit for the payment of any rent or any other sum in default, or for the payment of any amount which Landlord may spend or become obligated to spend by reason of Tenant's default, or to compensate Landlord for any other loss or damage which Landlord may suffer by reason of Tenant's default. If any portion is so used, Tenant shall within five (5) days after written demand therefor, deposit with Landlord an amount sufficient to restore the Lease Deposit to its original amount and Tenant's failure to do so shall be a material breach of this Lease. Except to such extent, if any, as shall be required by law, Landlord shall not be required to keep the Lease Deposit separate from its general funds, and Tenant shall not be entitled to interest on such deposit. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, the Lease Deposit or any balance thereof shall be returned to Tenant at such time after termination of this Lease when Landlord shall have determined that all of Tenant's obligations under this Lease have been fulfilled. 10. The following contact is added to Article 12 — Notices: Bradley Donaldson 2143 E Street NE, Ste 1 Auburn, WA 98002 206,851.2624 Bradley@Rainierflight.com Rainier Flight Services / COA Lease Agreement dated October 7111, 2024 (RES 5786) First Amendment RES 5912 Page 3 of 4 Docusign Envelope ID: 5FF3E7D3-E5C0-8121-83A6-B4F1BC4BC575 SIGNATURES By signing below, the TENANT ACKNOWLEDGES HAVING READ AND UNDERSTOOD THE CONTENTS OF THIS AMENDMENT, AND AGREES TO IT. TENANT RAINIER FLIGHT SERVICE, LLC �D-51anaa by: Gordlaw QW4 Gordon�Alvord, Owner 0, usign,d by: 5 ' Bradley Donaldson, Owner Rainier Flight Services / COA Lease Agreement dated October 71, 2024 (RES 5786) First Amendment RES 5912 LANDLORD CITY OF AUBURN Nancy c cus, ayor I Approv as to Form: Je halen, City Attorney Page 4 of 4