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HomeMy WebLinkAbout5560 RESOLUTION NO. 5560 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, RELATING TO AN AIRPORT LEASE AND AUTHORIZING THE MAYOR TO NEGOTIATE AND EXECUTE AN AIRPORT OFFICE AND TIE DOWN LEASE WITH CLASSIC HELICOPTER CORP WHEREAS, The Auburn Municipal Airport has office space and aircraft tie downs available for lease to private airport-related businesses; and WHEREAS, Classic Helicopter Corp currently leases on a month to month basis, a small office within the Airport Administration building and a single tie down on the field, authorized by Resolution 5489; and WHEREAS, an existing lease for the Airport modular building located at 400 23rd Street NE, commonly referred to as the "400 building" is set to expire on December 31, 2020; and WHEREAS, following the expiration of the existing lease, Classic Helicopter Corp; is interested in leasing the 400 building and seven (7) tie down spaces for their aircraft rental, flight instruction and scenic tours business on a long term basis; and WHEREAS, the public, the Airport and airport customers benefit from having Classic Helicopter Corp., located on the airport. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, RESOLVES as follows: Section 1. The Mayor is authorized to negotiate and execute a lease between the City of Auburn and Classic Helicopter Corp., which shall be in substantial conformity with the attached "Term Sheet". Resolution No. 5560 November 5, 2020 Page 1 of 2 Rev.2019 Section 2. The Mayor is authorized to amend this lease to increase the number of tie downs at an additional expense should Classic Helicopter Corp. express the desire to do so, and additional tie downs are available. Section 3. The Mayor is authorized to implement those administrative procedures necessary to carry out the directives of this legislation. Section 4. This Resolution will take effect and be in full force on passage and signatures. Dated and Signed: December 7, 2020 CITY OF AUBURN NANCY : • , es, MAYOR ATTEST: APPROVED AS TO FORM: CtA-W2t Shawn Campbell, MMC, City Clerk Kendra Comeau, City Attorney Resolution No. 5560 November 5, 2020 Page 2 of 2 Rev. 2019 CITY OF *T T • \1iJ BURN Nancy Backus,Mayor WASHINGTON "ti' 'Mal Star Auhurc WA 9800,4998 3 www.auburrmwa.gov*253-931-3000 Classic Helicopter terms for the 400 building at the Auburn Airport September 1,2020 Classic Helicopter Corporation Attn:Dan Dolan Term Sheet Premises: 400 23rd St NE—Commonly referred to as the"400 building"together with non-exclusive use of the parking lot located to the east of the building. Seven(7)tie-downs depicted in attached Exhibit A. Tenant is taking the Premises As-is,where-is. Term(s): Three(3)year initial term,commencing on January 1,2021 Two(2)consecutive three year option terms Base Rental Rate: $1,550.00 per month. Security Fee& A monthly security fee in the amount of$10.00 will be charged in Leasehold Tax: addition to the Base Rental Rate as part of your gross rent obligations. A State mandated Leasehold Tax in the amount of 12.84%will be charged to the gross monthly rental payments. Rental Adjustments: Lease rate during the initial term will be subject to annual rental adjustments based on CP1-W from August to August of the previous year with a maximum increase not to exceed 5%.A negative CPI adjustment will not constitute a reduction in the rental rate.The first rental adjustment to be assessed beginning January 1a,2022. Landlord and Tenant shall negotiate in good faith a new rental rate for each option term(s)the parties enter into.At no time will the base rent for the option term be less than the then current rental rate. AUBURN * MORE THAN YOU IMAGINED AClIyOf . IUBURN Nancy Backus,Mayor WASH I NGTON 25 West Main Street•Auburn WA 98001-4998*www.auburnwa.gov*253 931-3000 Maintenance Lessor,at their own cost and expense will be responsible for Responsibilities: maintaining the foundations,adjacent sidewalks,exterior walls, windows,roof,gutters and downspouts,unless damage is caused by negligence on behalf of the Lessee in which case Lessee shall be responsible for repair at their own expense and in a timely manner. Lessor at their own cost and expense is responsible for the care and maintenance of all Airport perimeter fencing and Airport accesses gates(vehicular&pedestrian),with the exception of the doorbell and remote notification and access system that opens pedestrian gate adjacent the 400 building which shall be the responsibility of the Lessee. Lessee,at their own cost and expense will be responsible for all interior repairs and maintenance of the 400 building including,but not limited to:interior walls,floors,electrical located within the 400 building,plumbing and plumbing fixtures located within the 400 building,heating and air conditioning equipment,unless damage is caused by negligence on behalf of Lessor. Lessee is also responsible for maintaining the doorbell and remote notification&access system only that opens the pedestrian access gate adjacent the 400 building. Lessee is solely responsible for securing,maintaining and expense of their own janitorial. Utilities: Lessee shall be responsible for establishing direct accounts with the City of Auburn and any other public or private providers of utilities as appropriate.Such utilities shall include but not be limited to:power, water,sewer,storm,garbage,phone&Internet. Uses: Aircraft rental,Flight instruction&Helicopter tours. Auburn City Council: The terms contained within are subject to the ratification of the Auburn City Council.If approved both parties will take reasonable steps to execute a formal lease based in substantial conformity to the terms contained within this term sheet. AUBURN* MORE THAN YOU IMAGINED CITY 01 • •• AU B U 1 J Nancy Backus,Mayor WASHINGTON 25 West Main Street*Auburn WA 98001-4998*www.auburnwa.gov*253-931-3000 [SIGNATURES ON FOLLOWING PAGE] Each party by signing below acknowledges and agrees to the terms as set firth above. Tenant Landlord(( g >�1 Signature: ► ' •\.� SII�"._ Signature: --�L��,v� rt�� Print Name: ban,€1 Print Name: ik , Title: PCe5,cJ'Est 1 Title: Moire Date: 0`?/°3/40, o Date: I rl el AUBURN* MORE THAN YOU IMAGINED CLASSIC HELICOPTER TERM SHEET EXHIBIT A k .1 It— J ' v- xr 1 2 ++ 3 4 6 f f Fit! Office c '