AGENDA Transportation Committee Regular Meeting 4:00 PM - Monday, November 21, 2016 Council Conference Room, 7th Floor, City Hall 1055 S.

Size: px

Start display at page:

Download "AGENDA Transportation Committee Regular Meeting 4:00 PM - Monday, November 21, 2016 Council Conference Room, 7th Floor, City Hall 1055 S."

Beryl Clark
5 years ago
Views:

1 AGENDA Transportation Committee Regular Meeting 4:00 PM - Monday, November 21, 2016 Council Conference Room, 7th Floor, City Hall 1055 S. Grady Way 1. LANDING GEAR WORKS LEASE AMENDMENT a) AB EMERGING ISSUES IN TRANSPORTATION

AB - 1784 AGENDA ITEM #1. a) City Council Regular Meeting - 07 Nov 2016 SUBJECT/TITLE: Amendment 03-16 to Lease LAG-13-005 with Landing Gear Works, LLC.

3 AB AGENDA ITEM #1. a) City Council Regular Meeting - 07 Nov 2016 SUBJECT/TITLE: Amendment to Lease LAG with Landing Gear Works, LLC. RECOMMENDED ACTION: Refer to Transportation (Aviation) Committee DEPARTMENT: Transportation Systems Division STAFF CONTACT: Jonathan Wilson, Airport Manager EXT.: 7447 FISCAL IMPACT SUMMARY: The net revenue increase would be $9, per year. SUMMARY OF ACTION: Landing Gear Works, LLC has been leasing space in the 295 East Perimeter Road building (old control tower) since September 1, 2013 for their aircraft parts manufacturing operation. They have been successfully managing their business over the years and will be increasing the number of employees and equipment to keep up with industry demands. Landing Gear Works is requesting an increase of 2,020 square feet of office space for additional employees and 1,474 square feet of storage space for materials to their current leased area. The net effect of this lease amendment is that Landing Gear Works will now be leasing the entire building at 295 East Perimeter Road. Up until now they have only been leasing a portion of the building. After executing this lease amendment, the annual increase to the Airport leasehold revenue will be $9, EXHIBITS: A. Amendment to Lease LAG STAFF RECOMMENDATION: Authorize the Mayor and City Clerk to execute Amendment to LAG with Landing Gear Works, LLC for a net revenue increase of $9, per year and approve an increase of 2,020 square feet of office space and 1,474 square feet of storage space in the 295 East Perimeter Road building.

4 LAG Amendment AMENDMENT TO BUILDING LEASE AGREEMENT City of Renton to Landing Gear Works, LLC THIS AMENDMENT No. 3 to Lease Agreement LAG is entered into as of October 1, 2016 by the City of Renton, a Municipal Corporation (Landlord) and Landing Gear Works, a limited liability company (Tenant) and amends that certain lease agreement LAG dated September 1, RECITALS: WHEREAS, the Tenant is currently leasing 6,710 square feet in the building located at 295 East Perimeter Road (295 building), under Lease LAG and Amendments 1 & 2 thereto; and WHEREAS, the total square footage of the first floor of the building is 10,204, leaving 3,494 square feet of the building unleased; and and WHEREAS, Tenant desires to lease the entirety of the first floor of the building; WHEREAS, Landlord desires to lease to Tenant the entirety of the first floor of the building; and WHEREAS, the currently leased 6,710 square feet in the 295 building is composed of 4,102 square feet of office space (representing approximately 60% of the leased space) and 2,608 square feet of storage space (representing approximately 40% of the leased space); and WHEREAS, the Tenant anticipates that the current ratio of office space to storage space would continue to be representative of Tenant s use of the entire first floor of the building; and WHEREAS, the Tenant would allocate 60 percent of the total square footage of the first floor of the building to office space and 40 percent of the total square footage of the first floor of the building to storage space; and WHEREAS, the total office space in the first floor of the building would increase to 6,122 square feet (10,204 x 60% = 6,122), and the total storage space in the first floor of the building would increase to 4,082 square feet (10,204 x 40% = 4,082); and Lease Agreement LAG City of Renton to Landing Gear Works LLC

5 LAG Amendment WHEREAS, the office lease rate is $4.50 per square foot per year for the 295 building; and WHEREAS, the standard storage lease rate is $ per square foot per year. NOW, THEREFORE, IN CONSIDERATION OF THE TERMS AND CONDITIONS HEREIN CONTAINED AND FOR OTHER GOOD AND VALUABLE CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH IS HEREBY ACKNOWLEDGED, LANDLORD AND TENANT AGREE TO AMEND THE LEASE, LAG AS AMENDED, AS SET FORTH BELOW: WITNESSETH: 1. The Landlord and Tenant do hereby agree to amend section 1.b. Legal Description and Reservation of Easement to read as follows: Landlord hereby leases to Tenant, and Tenant leases from Landlord for the term described in Section 3 below, the entire first floor of the building located at 295 East Perimeter Road as shown in Exhibit A attached hereto and incorporated herein by reference (hereinafter, Premises ) which includes 6,122 square feet of office space, and 4,082 square feet of storage space. 2. The Landlord and Tenant do hereby agree to amend Section 4.a. Minimum Monthly Rent to read as follows: Tenant shall pay to the Landlord a Minimum Monthly Rent in the sum of Two Thousand Four Hundred Forty and 00/100 Dollars ($2,440.00), PLUS Leasehold Excise Tax as described in Section 5, below, without deduction, offset, prior notice or demand, payable promptly in advance on the first day of each and every month. All such payments shall be made to the City of Renton 616 West Perimeter Road, Unit A, Renton, Washington The Minimum Monthly Rent is computed as follows: (6,122 sq. ft.)($4.50 per sq. ft. per year) = $27,549 (4,082 sq. ft.)($ per sq. ft. per year) = $1, $27, $1, = $29, / 12 months = $2, PLUS leasehold excise tax 3. All other terms and conditions of the original Lease Agreement and Amendments thereto, insofar as they are not inconsistent herewith, shall remain in full force and effect. Lease Agreement LAG City of Renton to Landing Gear Works LLC

6 LAG Amendment Landing Gear Works LLC a Washington Limited Liability Company CITY OF RENTON a Municipal Corporation Denis Law Mayor Title Jason Seth, City Clerk Date Approved as to legal form: Lawrence J. Warren, City Attorney Lease Agreement LAG City of Renton to Landing Gear Works LLC

7 LAG Amendment AMENDED EXHIBIT A See attached. Lease Agreement LAG City of Renton to Landing Gear Works LLC

AGENDA Utilities Committee Regular Meeting 5:00 PM - Monday, December 5, 2016 Council Conference Room, 7th Floor, City Hall 1055 S.

AGENDA Utilities Committee Regular Meeting 5:00 PM - Monday, December 5, 2016 Council Conference Room, 7th Floor, City Hall 1055 S. Grady Way 1. LEAK ADJUSTMENT CODE UPDATE a) AB - 1803 2. RELEASE OF EASEMENT