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Home My WebLink About12/09/2025 07.H. Resolution authorizing an amendment to McAllister Museum Lease with updated In-Kind contributions for 2026 • l'.4" N F BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 7.H. For Meeting of: December 9, 2025 ITEM TITLE: Resolution authorizing an amendment to McAllister Museum Lease with updated In-Kind contributions for 2026 SUBMITTED BY: Gary Bellew, Assistant City Manager SUMMARY EXPLANATION: Updating the In-Kind Contributions the Museum makes to the airport to provide an accurate rental credit for 2026. ITEM BUDGETED: N/A STRATEGIC PRIORITY 24-25: An Engaged Yakima RECOMMENDATION: Adopt Resolution. ATTACHMENTS: ResolutionMcAllisterMuseum 2024_11_20_McAllisterMuseurn Amendment #6.pdf 65 RESOLUTION NO. R-2025- A RESOLUTION authorizing an amendment to Airport Lease Agreement between the City of Yakima and McAllister Museum of Aviation WHEREAS, the City and McAllister Museum of Aviation entered into an Airport Lease Agreement effective July 1, 2000 for rental of property and facilities; and WHEREAS, the lease agreement allowed for rental credit for public purpose activities provided by the museum; and WHEREAS, said rental credit is memorialized via lease amendment; and WHEREAS, the museum provided an accounting of activities which have been reviewed and approved by airport staff; and WHEREAS, the parties wish to amend that agreement to allow for Tax Exempt Status and Rental Credit; now, therefore BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager is hereby authorized to execute the attached Amendment to Airport Lease Agreement Between Yakima Air Terminal-McAllister Field/City of Yakima and McAllister Museum of Aviation, attached hereto. ADOPTED BY THE CITY COUNCIL this 9th day of December, 2025. Patricia Byers, Mayor ATTEST: Rosalinda Ibarra, City Clerk 66 AMENDMENT#6 TO LEASE AGREEMENT BETWEEN CITY OF YAKIMA AND McALLISTER MUSEUM OF AVIATION THIS AMENDMENT TO THE AIRPORT LEASE AGREEMENT is made and entered into by and between the City of Yakima as the owner and operator of Yakima Air Terminal- McAllister Field, hereinafter referred to for purposes of this Amendment and the underlying Agreement as the "LESSOR", and McALLISTER MUSEUM OF AVIATION, a corporation in Washington State hereinafter referred to as "LESSEE": WHEREAS, the LESSOR and the LESSEE entered into an Airport Lease Agreement at 2008 S 16th Ave effective July 1, 2000; and WHEREAS, the parties wish to amend that agreement to allow for Tax Exempt Status and Rental Credit; NOW, THEREFORE, in consideration of the mutual promises set forth herein and the benefit to be derived by each party, it is agreed by and between LESSOR and OPERATOR that the lease shall be amended as follows: Each party acknowledges this is a new amendment to the underlying lease dated July 1, 2000, between the LESSOR and the LESSEE, and that this amendment supersedes and replaces all prior amendments. As used herein, "underlying Lease" is defined as the Lease Agreement dated July 1, 2000, and absent any amendment later released. The Lease in effect at any given time is defined by the underlying Lease and all active amendments. This amendment is effective January 1, 2026 through December 31, 2026. 1) Under Section 3. RENT, replace current paragraph 3.A and 3.B with the following: 3.A LESSEE promises and agrees to pay rent to LESSOR at the rate of$905.91 per month for the leased premises, made in advance on or before the 10th day of each month. Payments shall be made to the Yakima Air Terminal - McAllister Field in care of the Airport Manager's office. Any rental payments past due shall accrue a delinquency charge of eighteen percent (18%) per annum. The above rent reflects the 2026 Aviation Rate of $0.25 per square foot of land per year for aeronautical uses(65,236 square feet equates to a monthly rent of$1,359.08), reduced by a monthly Rent Credit of$453.17 given as a concession for in-kind services provided by McAllister Museum as noted in Exhibit B. LESSEE agrees to provide LESSOR with a written annual report no later than October 1st on the actual in-kind services provided compared to those described in Exhibit B. As a result of this annual report, the Rent Credit may be adjusted by subsequent Amendment to the underlying Lease. 3.B The lease rental rate as provide for above shall be subject to review and modification January 1 of every year and shall be set at the then current Aviation Rate. Yakima Airport—McAllister Field Ground Lease Amendment—Amendment#6 for 2008 S 16th Ave "McAllister Museum of Aviation" 67 2) At the end of document, add Exhibit B as described at the end of this Amendment. 3) Under Section 5. TAXES AND LIENS, replace current paragraph with the following: In addition to the rent payable above, LESSEE promises and agrees to pay, as the same become due and payable, all licenses, fees and taxes, including but not limited to the leasehold excise, required to be paid by LESSEE by reason of this Lease and by reason of LESSEE's use and occupancy of the leased premises and by reason of LESSEE's construction or ownership of improvements to the leased premises. LESSEE shall neither suffer nor permit the attachment of any lien or other encumbrance on the leased premises by reason of LESSEE's occupancy thereof. LESSEE agrees to indemnify LESSOR and shall hold LESSOR harmless from any such taxes and liens. LESSEE maybe exempt, at the discretion of the Airport, from paying Leasehold Tax if a Tax Exemption Report is provided to the airport annually, no later than October 1st, for Non- Profit Activities. Yakima Airport—McAllister Field Ground Lease Amendment—Amendment#6 for 2008 S 16th Ave "McAllister Museum of Aviation" 68 Exhibit B LESSEE, as a non-profit aeronautical-related enterprise, agrees to deliver the aeronautical services noted below at no charge. In support of the goal of supporting and growing the aeronautical community in the Yakima area, LESSOR agrees to contribute the noted portion of the estimated annual value of these services in the form of a Rent Credit as described in Paragraph 3.A herein. Supported by $Amount Estimated Annual YKM Rent Credited to Description Value (EAV) McAllister Rent Reduction (Annual) Conduct Youth and School Programs that demonstrate the working of aviation along $1 500.00 with an explanation of the values of an $3,000 50% , airport in your community _ Host community functions related to $600.00 aviation $1,200 50% Host Veterans' Day activities for the military $750 0% $0.00 veterans Host other group meetings such as non $1,200 0% $0.00 profit organizations Host Flight Training and Flight Safety $450 50% $225.00 activities for pilots and prospective pilots Provide a display that depicts significant historical aviation activities for the main airport terminal. (We have done in the $1,200 50% $600.00 past-will reinstall once terminal remodel is done) Refresh the display at the terminal on a regular basis as suggested by the Airport $600 0% $0.00 Board Host the EAA Young Eagles program providing a place for the children to access $1,500 50% $750.00 and exit the aircraft in a safe manner Provide meeting space for all aviation $400 50% $200.00 related organizations • Continuing to represent and display the rich $0 10% $0.00 aviation history of the Yakima Valley (Did not provide EAV) Host and provide a backup meeting area for $150 0% $0.00 Airport Board meetings Provide space for a backup Emergency Operations Center at the airport,in the $2,500 10% $250.00 event of an emergency Yakima Airport—McAllister Field Ground Lease Amendment—Amendment#6 for 2008 S 16th Ave "McAllister Museum of Aviation" 69 Provide space for special airport operations such as visiting aircraft of significant $1,500 50% $750.00 historical or technological importance Serve as a secure access point for the East end of the field (might be a TSA option or $2,500 10% $250.00 wildland fire fighting), in the event of an emergency Provide CAP Hangar Space for$1.00 per year.Search &Rescue and Cadet Program. $1 50% $0.50 5-Star Community Service Support local restaurant by food for $625 50% $312.50 Museum activates $0 Free Parking for visitors 50% $0.00 (Did not provide EAV) I Annual Total $5,438 Monthly Total $453.17 Report Provided by: _ _ Roberta Dell Rent Credit Calculation By: Shelby Barrett Date: 1-Nov-25 Date: 12-Nov-25 Yakima Airport—McAllister Field Ground Lease Amendment—Amendment#6 for 2008 S 16th Ave "McAllister Museum of Aviation" 70 LESSOR CITY OF YAKIMA AIRPORT YAKIMA AIR TERMINAL—MCALLISTER FIELD 2406 W. Washington Avenue, Suite B Yakima, Washington 98903 (509) 575-6149 — phone (509) 575-6185—fax By: Date: Victoria Baker, City Manager ATTEST: By: Rosalinda Ibarra, City Clerk STATE OF WASHINGTON ) ) ss County of Yakima ) I certify that I know or have satisfactory evidence that Victoria Baker signed this instrument, on oath stated that he was authorized to execute the instrument and acknowledged it as the City Manager of the City of Yakima, Washington to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. Date By: Notary Public for the State of Washington Residing at: Appointment Expires Yakima Airport—McAllister Field Ground Lease Amendment—Amendment#6 for 2008 S 16th Ave "McAllister Museum of Aviation" 71 OPERATOR McALLISTER MUSEUM OF AVIATION 2008 S 16th Ave Yakima, WA 98903 509-457-4933 ok,i11111111/04, \'�\g i N1.eg9A By: f �`*sZ•.. � ENr Greg a) jII3 k, Chairman kV? NOTARY ': r. Date: l / L ?/ _ • 0..-•+ '• - !! PUBLIC " STATE OF WASHINGTON ) `'�� p�W.•C.., ) ss 1 County of YAKIMA ) I certify that I know or have satisfactory evidence that Greg Babcock signed this instrument, on oath stated that he was authorized to execute the instrument and acknowledged it as Museum Chairman, to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. Date 2-01.)ov z-S By: S i-f-L-131 Notary Public for the State of WASHINGTON Residing at: V i4-, (.uW Appointment Expires 18 PrPa-2to - Yakima Airport—McAllister Field Ground Lease Amendment—Amendment#6 for 2008 S 16th Ave "McAllister Museum of Aviation" 72