HomeMy WebLinkAboutR-2024-133 Resolution authorizing an amendment to an airport lease agreement with CAS Properties for FedEx temporary parking use RESOLUTION NO. R-2024-133
A RESOLUTION authorizing an Amendment to Airport Lease Agreement between the City
of Yakima and CAS Properties.
WHEREAS, LESSOR operates the Yakima Air Terminal - McAllister Field; and
WHEREAS,the parties to this amendment are the parties to the underlying property Lease
dated the 27th day February 1997 ("Lease") and Amendment#2 to the Lease dated the 1'day of
November, 2018 ("Amendment#2"). The parties were also parties to Amendment#1 to the Lease
dated October 20, 2017. Amendment#1 has been terminated by the parties and is no longer in
effect. All terms defined in the Lease and Amendment #2 shall have the same meanings in this
Amendment; and
WHEREAS, the Lease provided for the LESSEE taking possession of approximately
51,866 square feet of land described in the Lease. Amendment #2, in relevant part, increased
the leased land to approximately 80,949 of square feet as described in Amendment #2. The
Lease and Amendment #2 remain in full force and effect. This Amendment shall have no effect
on the terms of the Lease and Amendment #2 and the Lease and Amendment #2 shall not be
affected by the termination or expiration of this Amendment. True and correct copies of the Lease
and Amendment#2 are attached hereto as Exhibits A & B; and
WHEREAS, LESSEE has constructed improvements on the Premises and subleased
the improvements to Federal Express Corporation. LESSOR has previously consented to the
sublease to Federal Express; and
WHEREAS, LESSEE has provided proper notice and indicated the desire to make use of
additional space East of the Premises to serve as a parking lot for its equipment and the vehicles
of its employees, 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 CAS Properties,
attached hereto.
ADOPTED BY THE CITY COUNCIL this 16th day of July, 2024.
."701
41,,V atricia By rs, Mayor
ATTEST: /„= yh1st/
'* SEAL *%
osalinda Ibarra, City Clerk
AIRPORT LEASE AGREEMENT
BETWEEN
YAKIMA AIR TERMINAL-McALLISTER FIELD AND
CAS PROPERTIES
AMENDMENT#3
THIS YAKIMA AIR TERMINAL-McALLISTER FIELD AND CAS PROPERTIES
AMENDMENT#3, is executed this 11 day of J , 2024 between the YAKIMA
AIR TERMINAL— McALLISTER FIELD, a department of the City of Yakima, Washington,
hereinafter referred to as "LESSOR," and CAS PROPERTIES, hereinafter referred to as
"LESSEE":
WITNESSETH:
WHEREAS, LESSOR operates the Yakima Air Terminal - McAllister Field; and
WHEREAS, the parties to this amendment are the parties to the underlying property
Lease dated the 27th day February 1997 ("Lease") and Amendment#2 to the Lease dated
the 1st day of November, 2018 ("Amendment #2"). The parties were also parties to
Amendment #1 to the Lease dated October 20, 2017. Amendment #1 has been
terminated by the parties and is no longer in effect. All terms defined in the Lease and
Amendment #2 shall have the same meanings in this Amendment; and
WHEREAS, the Lease provided for the LESSEE taking possession of approximately
51,866 square feet of land described in the Lease. Amendment #2, in relevant part,
increased the leased land to approximately 80,949 of square feet as described in
Amendment #2. The Lease and Amendment #2 remain in full force and effect. This
Amendment shall have no effect on the terms of the Lease and Amendment #2 and the
Lease and Amendment #2 shall not be affected by the termination or expiration of this
Amendment. True and correct copies of the Lease and Amendment #2 are attached
hereto as Exhibits A & B; and
WHEREAS, LESSEE has constructed improvements on the Premises and subleased
the improvements to Federal Express Corporation. LESSOR has previously consented
to the sublease to Federal Express; and
WHEREAS, LESSEE has provided proper notice and indicated the desire to make use
of additional space East of the Premises to serve as a parking lot for its equipment and
the vehicles of its employees; and
WHEREAS, LESSOR is willing to lease the Additional Premises (defined below) to
LESSEE on the terms and conditions stated below,
NOW THEREFORE, in consideration of the mutual promises contained herein and the
benefit to be derived by each party, the parties agree as follows:
1. ADDITIONAL PREMISES:
LESSOR does hereby lease and let unto LESSEE, and LESSEE does hereby
lease and take from LESSOR, approximately seven thousand nine hundred and
sixty (7,960) square feet of additional property consisting of a rectangle measuring
approximately 398 feet in length by 20 feet in width ("Additional Premises") located
immediately East of the Premises described in the Lease, together with the right
of ingress to and egress from the leased property. The Additional Premises is
located in the City of Yakima, Yakima County, Washington, as depicted on the
drawing marked Exhibit C attached hereto and by this reference made a part
hereof.
2. TERM:
The tenancy created by this Amendment for the Additional Premises shall
commence on 1st of July 2024, and continue for a period of six (6) months,
terminating on December 31st, 2024. LESSEE shall have the option to extend the
term by one (1) additional year, that if so extended would expire on December 31,
2025; provided that LESSEE delivers to LESSOR, not less than thirty (30) days
before the expiration of the original one-year term, written notification of its intent
to extend the term.
3. RENT:
For the Additional Premises, LESSEE promises and agrees to pay the following
additional lease payments/fees on or before the 10th day of each month.
Payments shall be made to the City of Yakima, Accounts Receivable, 129 N. 2nd
St, Yakima, WA 98901. These amounts shall be in additional to any amounts due
under the Lease and/or Amendment#2. Any rental payments/fees past due shall
accrue a delinquency charge of twelve percent (12%) per annum.
A. The rent for the Additional Premises provided by this Amendment shall be
calculated at the same rate applied to the underlying Premises and shall be
subject to the same adjustments as are provided in the underlying Lease. The
current commercial rental rate is twenty ($0.25) cents per square foot per year,
yielding an additional monthly rent of one-hundred and sixty-five dollars and
eighty-three cents ($165.83) for the Additional Premises added by this
Amendment, plus the applicable leasehold tax. As provided in the Lease, the
lease rental rate provided for above shall be subject to review, modification
and/or reset on the five-year anniversary of the lease. The rate per square foot
shall be set at the then current Commercial Land Rate as published in the
Airport Rates & Fees.
Other than the specific amendments stated herein, all other terms, conditions, obligations,
rights and requirements of the underlying Lease and Amendment #2 shall remain in full
force and effect throughout the lease term.
LESSOR:
YAKIMA AIR TERMINAL - McALLISTER FIELD
2406 W. Washington Avenue, Suite B
Yakima, Washington 98903
(509) 575-6149 - phone
(509) 575-6185 - fax
(i(1)
Dave Zabell, I er' y Manager
STATE OF WASHINGTON CITY CONTRACT NO. `IS' Jt
County of Yakima RESOLUTION NO: - - 33
I certify that I know or have satisfactory evidence that Dave Zabell signed this instrument,
on oath stated that he is authorized to execute this instrument and acknowledged it as
the Interim City Manager to be the free and voluntary act of such party for the uses and
purposes mentioned in the instrument.
Daten �� .R PR '''%
By: ( C�� �SSION F•�C
Notary Public = ::o`A NOT -to F
_ ARy s.
Appointment Expires a t 1. 1Z)120 5 — No. 107265 N:
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CAS PROPERTIES(FEDEX)-AMENDMENT#3 3
LESSEE:
Chris A Smith
CAS Properties
MILLENNIUM TOWER
715 SECOND AVENUE, Suite 1903
SEATTLE, WA 98104
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CHRIS A SMITH Date
STATE OF State of Hawaii
County of Yakima W }ss, ,
City and County of Honolulu}
I certify that I know or have satisfactory evidence that Chris A Smith signed this instrument
and acknowledged it to be his free and voluntary act for the uses and purposes mentioned
in the instrument.
Date ,)t, y 1, 7;da�l
B / Cody W. M. Hirose
y ` Notary Pub`c,Stele o*Haw,P
Notary Public My Commission Expires
Appointment Expires July 22.. 2026
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[INSERT COPY OF ORIGINAL LEASE]
4 .
LEASE AGREEMENT
CAS PROPERTIES
at-
THIS LEASE, executed this day of 1997, between
the YAKIMA INTERNATIONAL AIRPORT - McALLISTER FIE , an agency of
the City of Yakima and County of Yakima, Washington, hereinafter
referred to as "LESSOR, " and CAS PROPERTIES hereinafter referred to
as "LESSEE" :
WITNESET H:
WHEREAS, LESSOR owns and operates the Yakima International Airport
- McAllister Field, hereinafter referred to as "Airport, " and
WHEREAS, LESSOR has approved property available for lease as
provided by this Lease, and LESSEE desires to occupy and use such
property in accordance with this Lease,
NOW THEREFORE, in consideration of the mutual promises contained
herein and the benefit to be derived by each party, the parties
agree as follows:
1 . PREMISES:
LESSOR does hereby lease and let unto LESSEE, and LESSEE does
hereby hire and take from LESSOR, approximately 51 ,866 square
feet of land in the City of Yakima, Yakima County, Washington,
as that property is depicted on the drawing marked Exhibit
"A" , attached hereto and by this reference made a part hereof,
together with the right of ingress to and egress from the
leased premises over and across common public access ways.
One such common public access way shall be an access way no
more than forty (40) feet wide connecting the leased premises
to West Washington Avenue. LESSEE shall be responsible for
all expenses pertaining to the development and maintenance of
said access way.
The right of ingress/egress shall include an area for aircraft
operations as described on the site plan, Exhibit "A, " for use
as a common public accessway. Such area to be improved and
maintained by LESSEE according to Federal Express Corporation
Station Design Criteria, Yakima, Washington dated August 2,
1995, page 4, as follows: "Aircraft Ramp and Taxiway will be
3 inches minimum A. C. paving over 4 inch minimum thickness
3/4" minus crushed aggregate and 5 inches minimum thickness
Cas97 .lse 1
with 2 to 4 inch crushed aggregate. "
2. TERM:
The tenancy created by this Lease shall commence on March 1,
1997 and terminate on February 28, 2037 .
LESSEE shall have the option to extend the term by one ten
(10) year period (to wit, March 1, 2037 through February 28,
2047) ; provided that LESSEE delivers to LESSOR not less than
ninety (90) days before the expiration of the original term
written notification of its intent to extend the term. The
right to exercise this option shall lapse if the property is
not mortgaged after the fortieth (40th) year of the lease
term.
3. MORTGAGE:
LESSEE and his assigns shall have, and are hereby given, the
right to mortgage the leasehold created by this Lease for an
amount not to exceed the possessory interest of the LESSEE and
for any term not exceeding beyond the lease term, or any
renewal thereof. LESSOR shall be given written notice thereof
of any such mortgage, including the mortgagor's address and
loan number. LESSOR shall have no right to terminate the Lease
or retake possession of the premises or expel LESSEE unless
sixty (60) days' advance written notice of such default is
given by the LESSOR to LESSEE and LESSEE's mortgagee at the
Lessee's last address provided in writing by LESSEE or
LESSEE'S mortgagee to LESSOR. The mortgagee is hereby given
the power and authority, at its option, to cure all such
events of default, which may be cured by action of the LESSEE,
and in the name, place, and stead of the LESSEE. In the event
a mortgage on the leasehold is foreclosed, the purchaser at
the foreclosure sale may assign, sell, or otherwise dispose of
the leasehold interest, subject to approval by LESSOR of any
such assignment and sale and subject to approval by LESSOR of
the assignee or purchaser; such approval shall not be
unreasonably withheld. The assignment or sale of this Lease
shall not relieve the assignee or purchaser of any obligation
under this Lease nor relieve it from any terms of this Lease.
4. RENT: G,9/ 6/i/o2///////0I73 .27/3/H//20a 9 i
A. LESSEE promises and agrees to pay rent to LESSOR at the
rate of $540 . L 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 International Airport - McAllister
Field in care of the Airport Manager's office. Any rental
Cas97 .lse 2
payment past due shall accrue a delinquency charge of twelve
percent (12%) per annum.
B. The rental rate as provided for above shall be subject to
review and modification on every five year anniversary of this
Lease.
The rental rate for this property shall be adjusted to the
then current commercial/industrial land lease rate and shall
be consistent with all other commercial/industrial land leases
at the Airport.
C. In the event the parties are unable to agree upon the fair
market rental rate for the succeeding periods, upon written
notice of either party to the other, but no later than thirty
(30) days prior to the expiration of the then current rental
period, the matter of establishment of fair market rental
shall be referred to arbitration. Within thirty (30) days of
such notice, each party shall select one arbitrator. The two
arbitrators shall jointly select a third arbitrator who shall
be a real estate broker with at least five (5) years
experience in sales or leases of commercial property in the
Yakima Valley. The decision of a majority of the arbitrators
as to the fair market rental value for the property shall be
made within forty-five (45) days of said written notice and
shall be binding. Each of the parties shall bear the cost of
its designated arbitrator. The parties shall share equally
the expense of the third arbitrator. The arbitration decision
shall be binding upon both parties and shall be enforceable in
accordance with the laws of the State of Washington. The
arbitrator's decision shall relate back to the beginning of
the new rental period.
0100.1 /1'1'i
5. DEPOSIT: F. Karc I 1, /9'7'7 ��� 19,
Upon execution of this Lease by both parties, LESSEE shall
deposit with LESSOR the amount of two month's rent plus
leasehold tax as a guarantee of LESSEE's performance of this
Lease and the timely payment of the rent provided for herein;
and in the event LESSEE shall fail to pay the rent as provided
herein, or otherwise breach this Lease, then the Airport
Manager may apply such deposit, or any part thereof as may be
necessary, to the payment of rental or to the payment of
damages for such breach. This deposit shall be adjusted from
time to time to reflect adjustments in the rent and/or
leasehold tax.
6. TAXES AND LIENS:
In addition to the rent reserved above, LESSEE promises and
Cas97 .1se 3
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 shall not be in default hereunder with respect to any
lien which attaches prior to or in the absence of notice to
LESSEE of such lien or prior to such lien being payable, nor
with respect to a lien disputed by LESSEE in good faith
provided that LESSEE shall prosecute such dispute vigorously.
7. USE:
LESSEE agrees to use the leased premises only for an
aeronautical oriented activity or for any other use allowed by
the Master Plan and the zoning by the appropriate jurisdiction
as approved by the LESSOR. The use of the property for any
other purpose shall be deemed a material breach of this Lease
constituting grounds for its termination. This provision
shall apply to any assignment of this Lease whether voluntary
or due to mortgage foreclosure. Failure of the assignee to
comply shall be reasonable cause for LESSOR to withhold
approval or consent to assignment.
8. UTILITIES:
LESSEE shall be responsible for all utility services
including, but not limited to, power, natural gas, water,
sewer, and garbage.
9. YAKIMA AIR FAIR:
LESSEE acknowledges that it may be necessary to curtail some
activities during the exercise of the Yakima Air Fair License.
LESSEE understands that LESSEE'S business may be interrupted
during these dates and will not deem this interruption as a
breach of contract by LESSOR.
LESSOR shall allow all business activities of LESSEE to
continue; however, LESSEE shall restrict its activities to the
leased premises and adjacent ramp with the exception of
takeoffs and landings .
Cas97 .lse 4
10. PREMISES CONDITION:
LESSEE has made a full inspection of the property, is fully
aware of its condition, except with respect to environmental
conditions, and accepts the property on an "AS-IS" basis.
LESSEE agrees to pay for any improvements, repairs and/or
modifications necessary to the operation of LESSEE's business.
11 . MAINTENANCE:
LESSEE agrees to keep and maintain the premises in at least as
good a condition as the condition of the premises at the
beginning of LESSEE's occupancy, normal wear and tear
excepted. LESSEE further agrees that LESSEE shall be
responsible to maintain all leased areas, buildings, trade
fixtures and other improvements, existing and future, in an
attractive and usable manner as reasonably determined by the
Airport Manager and consistent with other properties at the
Airport. Maintenance shall include, but not be limited to
weed control, snow removal and pavement maintenance.
12. SIGNS: •
No signs or other advertising matter or devices shall be used
or displayed in or about the leased premises or upon any
portion of the Airport without the prior written approval of
the Airport Manager, which approval shall not be unreasonable
withheld.
LESSEE shall have the permission of the Airport Manager to
locate a sign of thirty-two (32) square feet or less at the
entry of the access way to the leased premises on West
Washington Avenue. Such sign shall not obstruct the view of
drivers of vehicles entering or exiting Washington Avenue.
13 . IMPROVEMENTS :
All buildings, trade fixtures and other improvements to the
leased property by LESSEE shall conform to applicable
construction codes, and Lessee shall procure all building and
other permits therefore. All buildings trade fixtures and
other improvements shall be designed with a view toward
aesthetic considerations and installation shall not commence
until plans and specifications therefore have been submitted
to and approved in writing by the Airport Manager, which
approval shall not be unreasonably withheld. Approval of
LESSEE's improvements shall be deemed granted twenty (20) days
after submission in writing to the Airport Manager if no
response has been received by LESSEE. The Preliminary Plans
Cas97 .lse 5
N
(exhibit "C" ) have been reviewed and approved by the Airport
Manager. LESSOR makes no guarantee as to the suitability of
the leased area for construction of buildings, roads, ramps,
etc. , and is not responsible for the costs of excavation
and/or removal of any object found either above or below
ground level, except hazardous materials and archaeological
artifacts existing prior to tenancy.
14. REVERSION OF IMPROVEMENTS UPON TERMINATION:
Upon expiration or termination of the tenancy for any reason,
all buildings, and other improvements on the leased premises
shall immediately revert to LESSOR, except for trade fixtures.
Prior to the expiration of this Lease, LESSEE shall remove all
such trade fixtures and repair any damage to the premises
caused by removal of trade fixtures to the reasonable
satisfaction of the Airport Manager. Fixtures not removed
within thirty (30) days after termination become the property
of the LESSOR unless other arrangements have been previously
approved in writing by the Airport Manager. LESSEE shall, as
additional consideration for grant of this Lease, insure that
all liens and encumbrances against said improvements and
structures, except those created or suffered by Lessor whether
consensual or involuntary, shall be paid, discharged or
satisfied prior to time for reversion thereof to LESSOR; and,
in any event, the parties acknowledge that LESSOR shall not by
virtue of termination of the leasehold interest nor reversion
of the structures or other improvements be liable for any debt
or encumbrance associated therewith.
15. LESSOR'S OPTION TO PURCHASE:
LESSEE shall give LESSOR thirty (30) days prior written notice
of any intent by LESSEE to sell the entirety of the leasehold
improvement(s) . Such notice shall indicate improvement(s) to
be sold and the asking price for same. When a contract has
been negotiated, LESSEE shall notify LESSOR in writing, which
notice shall contain a copy of the contract for such sale
binding the parties thereto except for the right of LESSOR to
exercise this option, discounted by the LESSOR's reversionary
interest in the leasehold improvements to the extent that the
discount is not already reflected in the contract price. For
a period of thirty (30) days after its receipt of such notice,
LESSOR shall have the first right and option to buy the
improvement(s) on the same terms and conditions as the
intended sale.
16. REGULATIONS :
Cas97 .lse 6
LESSEE agrees to comply with all laws, ordinances, rules,
regulations and policies of all governmental authorities
having jurisdiction over the Airport, including LESSOR, as
such laws, ordinances, rules, regulations and policies apply
generally to the use and operation of Airport property,
facilities and operations as those laws, ordinances, rules,
regulations and policies now exist or may hereafter become
effective, including policies adopted by LESSOR.
17. SUBLETTING:
LESSEE shall not sublet any part of the premises without the
prior written approval of LESSOR, such approval not to be
unreasonably withheld. Sub-leases shall give preference to
aeronautical activities and shall comply with all laws,
ordinances, rules, regulations and policies applicable to the
use and operation of the Airport property, facilities and
operations as those laws, ordinances, rules, regulations and
policies now exist or may hereafter become effective. A
consent to sub-lease by LESSOR shall not be construed to be a
consent to any subsequent sub-lease. The LESSOR, in
determining whether or not to approve a sub-lease, shall give
preference to aeronautical activities.
Any income to LESSEE derived from sub-leasing shall be
distributed to LESSOR in accordance with its policy on SUB-
LEASING INCOME in effect at the time of the final execution of
this Lease. The current policy states that there is no
requirement for sharing of sub-leasing income to tenants who
lease only land and construct their own building. (Note Policy
and Procedure Guidance Statement #004 - Policy and Procedures
for Leasing Properties at the Yakima Air Terminal - Amendment
#3 executed May 23, 1996. )
LESSOR hereby accepts Federal Express Corporation as a sub-
tenant of the LESSEE, and understands the subtenants'
operation may use a twenty-four (24) hour operational day.
18. ASSIGNMENT:
Except for assignment to Federal Express or a 1031 Exchange
entity or assignment to a lender for security purposes, the
LESSEE shall not assign this Lease without the prior written
approval of LESSOR, such approval not to be unreasonably
withheld. Such assignment shall be in conformance with all
Airport Board, local, state and federal laws, ordinances,
rules, regulations and policies. LESSEE shall give preference
to aeronautical activities and all assignees shall comply with
all laws, ordinances, rules, regulations and policies
applicable to the use and operation of Airport property,
Cas97 .lse 7
facilities and operations as those laws, ordinances, rules,
regulations and policies now exist or may hereafter become
effective. A consent to assignment by LESSOR shall not be
construed to be a consent to any subsequent assignment.
19 . MISCELLANEOUS PROVISIONS:
A. The parties agree that LESSOR, through its Airport Manager
or other person authorized by the Airport Manager, may enter
upon the leased premises at any reasonable time to make such
inspections as LESSOR may deem necessary to the proper
enforcement of any term, provision or condition of this Lease.
No such entry or inspection by LESSOR is required by this
provision, and the failure of LESSOR to enter and make
inspection shall not alter the relationship of the parties and
their respective rights and duties provided by this Lease.
LESSEE shall be granted the right of quiet enjoyment.
B. LESSOR may further develop or improve Airport property and
facilities, regardless of the desire or views of LESSEE
regarding any such development or improvement, and without
interference or hindrance on the part of LESSEE and without
liability to LESSEE, provided the operations of the LESSEE are
not unreasonably interrupted.
C. LESSOR reserves the right, but shall not be obligated to
LESSEE, to maintain and keep in repair the landing area of the
Airport and all publicly owned facilities of the Airport,
together with the right to direct and control all activities
of LESSEE in that regard.
D. LESSOR reserves the right to take any action necessary or
desirable by LESSOR to protect the operations of the Airport
against obstruction, together with the right to prevent LESSEE
from erecting, or permitting to be erected, any building or
other structure on the Airport which, in the opinion of the
Airport Manager, would limit the usefulness of the Airport or
constitute a hazard to aircraft.
LESSEE shall limit the building area to that portion of the
property which is north of the building restriction line as
defined by the Airport Layout Plan and a height not to exceed
thirty five (35) feet.
E. During time of war or national emergency, LESSOR shall
have the right to lease the landing area or any part thereof
to the United States Government for military use, and, if any
such lease is executed, the provisions of this Lease shall be
suspended insofar as they are inconsistent with the provisions
of the lease with the United States of America.
Cas97.lse 8
F. This Lease shall be subordinate to the provisions of any
existing or future agreement between LESSOR and the United
States of America relative to the operation or maintenance of
the Airport, the execution of which has been or may be
required as a condition to the expenditure of federal funds
for the development of the Airport.
G. If the leased premises or any interest therein is taken as
a result of the exercise of the right of eminent domain, this
Lease shall terminate as to such portion as may be taken. If
the portion taken does not feasibly permit the continuation of
the operation of the facility by LESSEE, LESSEE shall have the
right to terminate this Lease. Such termination shall be
effective as of the date LESSEE's operations cease. LESSEE
shall be entitled to a portion of the award representing its
interest in the premises. LESSOR shall be entitled to the
remainder of the award.
20 . LESSOR REPRESENTATIONS:
A. As of the date hereof, there are no laws, regulations,
rules, or polices adopted or approved, or under consideration
for adoption or approval, by the Airport, City or County of
Yakima, which would prohibit LESSEE's intended use and
business activities on the premises.
B. As of the date hereof, to the best of the LESSOR's
knowledge, there are no laws, regulations, rules or policies
adopted and in effect or under consideration by any other
federal, state, county, city or other governmental body which
would prohibit LESSEE's intended use and business activities
on the premises.
C. As of the date hereof, the premises are free and clear of
all liens and encumbrances of whatever kind or nature, and
there are no claims, suits or actions, whether actual or
threatened, which will or could result in any such liens or
encumbrances or other impairments, restrictions, or
prohibitions on LESSEE's use of the premises.
D. As of the date hereof, LESSOR has the full power and
authority to enter into this Lease and to fully comply with
all of its terms and provisions, and this Lease will be valid
and binding against LESSOR upon execution by the Board of the
Yakima International Airport - McAllister Field.
21 . INDEMNITY/DUTY TO DEFEND:
A. At no expense to LESSOR, LESSEE shall defend against and
indemnify fully and save harmless the Board of Yakima
Cas97 .lse 9
International Airport - McAllister Field, the Yakima
International Airport - McAllister Field, the City of Yakima
and Yakima County and their elected and appointed officials,
employees and agents, from any and all liability, damages,
suits, claims, actions, judgements or decrees, made against
the Board of the Yakima International Airport - McAllister
Field, the Yakima International Airport - McAllister Field,
the City of Yakima or Yakima County or their elected and
appointed officials, employees and agents, including all
expenses incidental to the investigation and defense thereof,
including reasonable attorney fees, based on or arising from
the occupancy or use of the leased premises by LESSEE or as a
result of LESSEE's operations at the Airport or from any other
act or omission or LESSEE, its servants, employees, agents,
invitees, independent contractors or any other person acting
on behalf of LESSEE or under its direction, whether such claim
shall be by LESSEE or a third party; provided, however, that
LESSEE shall not be liable for any injury, damage or loss
occasioned solely by the sole negligence of LESSOR, its agents
or employees. LESSOR shall give to LESSEE prompt and
reasonable notice of any such claims or actions and LESSEE
shall have the right to investigate, compromise and defend the
same to the extent of its interest.
B. LESSOR agrees to defend, indemnify, and hold LESSEE
harmless against and from any claim or liability arising from
or alleged to arise from the presence of hazardous material or
toxic waste on the subject leased premises at the inception of
this Lease and the introduction to the premises of such
materials due to LESSOR'S activities or under its control .
LESSOR shall provide LESSEE with a satisfactory Level 1
Environmental Audit.
C. LESSEE shall keep and hold the Board of the Yakima
International Airport - McAllister Field, the Yakima
International Airport - McAllister Field, the City of Yakima
and County of Yakima, their elected and appointed officials,
agents and employees, free and harmless from any and all
claims and actions, loss, damage, expense or cost, including
reasonable attorneys fees, incidental to the investigation and
defense thereof, resulting from, arising out of, or caused by
LESSEE resulting in any liability under the Federal
Comprehensive Environmental Response Compensation Liability
Act of 1980, as amended, 42 U.S.C. 9601 et seq. ; Hazardous
Materials Transportation Act, 49 U.S.C. 1801 et seq. ; Resource
Conservation and Recovery Act, 42 U.S.C. 6901 et seq. ; the
Clean Water Act, 42 U.S.C. 1251 et seq. ; the Washington
Environmental Policy Act, RCW Ch. 43 . 21C; the Washington Water
Pollution Control Act, RCW Ch. 90.48; the Washington Hazardous
Waste Management Act, RCW Ch. 70.105; the Washington Model
Toxic Control Act, RCW Ch. 70 .105D, and the regulations
promulgated thereunder, or under any applicable local or state
Cas97 .lse 10
{
environmental ordinance, statute law, rule or regulation. The
provisions of this Sub-section shall survive the termination
of this Lease.
D. LESSOR and LESSEE each waive all rights of subrogation.
22 . INSURANCE:
LESSEE shall file with LESSOR a certificate of insurance, or
other proof of insurance acceptable to LESSOR, evidencing an
insurance policy with the Board of the Yakima International
Airport - Mcallister Field, the Yakima International Airport -
McAllister Field, City of Yakima and County of Yakima as
additional insureds providing:
1 . Comprehensive general liability insurance coverage in
an amount of not less than $1,000,000 Combined Single
Limit for bodily injury and property damage covering
LESSEE's occupancy of and activities pertaining to the
leased premises.
LESSEE specifically agrees that insurance limits shall be
reviewed at least every five (5) years and that LESSOR may
make reasonable adjustments to the required limits.
Not less than 30 days written notice, or such longer time
period as may be acceptable to LESSOR, must be supplied to
LESSOR in the event of cancellation, material change to the
policy or non-renewal of any or all policies. Certificate
shall be issued by carrier(s) with a minimum A.M. BEST rating
of A-VII which are admitted in the State of Washington or
other carrier(s) as shall be acceptable to LESSOR.
23. DEFAULT:
A. It is agreed that the full and prompt performance of the
terms and conditions of this Lease is of the essence, and
shall LESSEE be in default of any of the same and such default
has continued for thirty (30) days (except three (3) days
notice for default in payment of rent) after receipt of
written notice by LESSOR setting forth the particular default
claimed, this Lease shall at the option of LESSOR, be
forfeited and in such event it is expressly agreed that LESSOR
may enforce such forfeiture pursuant to the unlawful detainer
statutes of the State of Washington, and, LESSEE hereby waives
all defenses as to the non-applicability of such statutes. It
is further agreed that after receipt of notices and as an
additional condition to avoid forfeiture LESSEE shall pay
LESSOR'S costs and expenses, including attorney's fees, for
the preparation and service of such notice. Nothing contained
Cas97 .lse 11
herein shall release or diminish LESSEE's obligation to pay
rent for the full term of this Lease save such amount as
LESSOR recovers as rent from any subsequent lessee during the
term of this Lease. Any notice sent by transmission requiring
a return receipt, shall be deemed received if refused.
B. As additional and not alternative remedy, optional with
LESSOR and upon sixty (60) days written notice to LESSEE,
should LESSEE be in default hereunder other than default in
the payment of rent, LESSOR may cure or correct the same and
the cost of such action by LESSOR shall immediately become due
and payable from LESSEE, together with late fees on said sum
at a rate of twelve percent (12%) per annum, and the non-
payment of said sum by LESSEE shall be adequate grounds for
LESSOR to invoke the other remedies as provided in this Lease.
24. TERMINATION AND FORFEITURE:
A. The failure by LESSEE to pay rent in the amounts and at
the times specified herein, or the failure by LESSEE to
otherwise comply with any term, provision or condition of this
Lease, shall constitute grounds for termination of this Lease
and forfeiture of all rent paid by LESSEE to the time of
termination. This Lease and tenancy shall terminate and rent
paid shall be forfeited for cause as specified above on
written notice by LESSOR to LESSEE stating the amount of rent
in default or otherwise stating accurately the manner in which
LESSEE fails or has failed to comply with this Lease. LESSEE
shall make full payment or otherwise comply with this Lease in
the manner specified in the notice within thirty (30) days
(except three (3) days for payment of rent) from LESSEE's
receipt of such notice, otherwise this Lease and tenancy shall
be terminated and rent forfeited. Such notice shall be given
in writing and served on LESSEE by personal delivery or mailed
by certified mail with return receipt requested addressed to
LESSEE at its address stated below LESSEE'S signature to this
Lease or such other address as the parties may advise each
other in writing. LESSEE's obligation to pay the remainder of
rents due hereunder shall abate only to the extent rental
income is received from a succeeding tenant, if at all .
B. Upon termination of this Lease, LESSEE shall peaceably and
quietly vacate the premises including any improvements and
shall restore the premises to LESSOR in the same condition as
when occupied, normal wear and tear excepted. If LESSEE fails
to remove its personal property and effects upon the
termination of this Lease for any cause, LESSOR shall have the
right to remove and store all of said property and effects at
the expense of LESSEE.
Cas97 .lse 12
25. INSOLVENCY:
In the event LESSEE is declared bankrupt by a court of
competent jurisdiction or in the event LESSEE makes an
assignment for the benefit of creditors, or if a receiver
otherwise is appointed for LESSEE, or in the event LESSEE's
leasehold estate is subjected to execution to satisfy any
judgement against LESSEE, then in that event LESSOR may
immediately or at any time thereafter without notice or demand
enter into and upon the property or any part thereof and
repossess the same and expel LESSEE or any person upon the
premises and remove their effects, and thereupon this Lease
and the tenancy hereby created shall absolutely terminate,
without prejudice to any. remedies which might otherwise be
available to LESSOR for collection of past due or future rent.
It is understood and agreed that the Mortgagee (ref. Section
3) , if any, shall have the option to cure any default under
this Section.
26. VENUE, ATTORNEY FEES:
In the event of litigation to enforce the rights and
obligations hereunder, venue shall lie in Yakima County
Superior Court, and the prevailing party shall be entitled to
its reasonable attorney fees in addition to court costs.
27. NON-DISCRIMINATION CLAUSE:
To the extent required by law, LESSEE, for itself, its
personal representative, successors in interest and assigns,
as a part of the consideration hereof, does hereby covenant
and agree as follows:
A. No person, on the grounds of race, color, religion, sex,
age, marital status, handicap or national origin, shall be
unreasonably excluded from participation in, denied the
benefits of, or be otherwise subjected to discrimination in
LESSEE's personnel policies and practices or in the use or
operation of LESSEE's services or facilities.
B. LESSEE agrees that in the construction of any
improvements on, over or under Airport land and the furnishing
of services thereon, no person, on the grounds of race, color,
religion, sex, marital status, handicap, age or national
origin, shall be unreasonably excluded from participation in,
denied the benefits of, or otherwise be subjected to
discrimination.
C. LESSEE shall use the Premises in compliance with all
other requirements imposed by or pursuant to Title 49 . Code of
Cas97 . lse 13
Federal Regulations, Department of Transportation, Subtitle A,
Office of the Secretary, Part 21 , Non-discrimination in
Federally Assisted Programs of the Department of
Transportation-Effectuation of Title VI of the Civil Rights
Act of 1964, and as said Regulations may be amended.
D. It is the policy of the Department of Transportation that
minority business enterprise as defined in 49 CFR Part 23,
i.e. , firms owned and controlled by minorities; firms owned
and controlled by women and firms owned and controlled by
financially disadvantaged persons; shall have the maximum
opportunity to participate in the performance of leases as
defined in 49 CFR Section 23.5. Consequently, this Lease is
subject to 49 CFR Part 23 as applicable.
Lessee hereby assures that no person shall be excluded from
participation in, denied the benefits of or otherwise
discriminated against in connection with the award and
performance of any contract, including leases, covered by 49
CFR Part 23 on the grounds of race, color, national origin or
sex.
Lessee hereby assures that it will include the above clauses
in all sub-leases and cause sub-lessees to similarly include
clauses in further sub-leases.
28. INTEGRATION:
This document embodies the entire agreement of the parties
with respect to the subject matter herein contained. No
amendments or modifications hereof shall be enforceable unless
in writing, signed by the party to be charged.
29 . NOTICE:
All notices allowed or required hereunder shall be effective
if delivered by mail, return receipt requested at the address
shown below unless a different address is designated by a
party in writing:
If to LESSOR: YAKIMA INTERNATIONAL AIRPORT
McALLISTER FIELD
2400 W. Washington Avenue
Yakima, Washington 98903
PHONE: (509) 575-6149
FAX: (509 ) 575-6185
Cas97 . lse 14
If to LESSEE: CHRIS A. SMITH
CAS PROPERTIES
P 0 Box 1602
Portland, Oregon 97207
PHONE: 503-241-0615
FAX: 503-241-4063
with copy to: JAMES C. WAGGONER
DAVIS WRIGHT TREMAINE
1300 SW 5th, Suite 2300
Portland, Oregon 97201
PHONE: 503-241-2300
FAX: 503-778-5299
Time is of the essence of this entire Lease agreement.
Cas97 .lse 15
I
i
YAKIMA INTERNATIONAL AIRPORT - McALLISTER FIELD
2400 W. Washington Avenue
E-
Y ima, Washington 98903
5 575-6149
D is By , Chairman
/1 ;e-a-,----,,51-e -
Greg B r , Secretary
STATE OF WASHINGTON
County of Yakima
I certify that I know or have satisfactory evidence that Dennis
Byam and Greg Berndt signed this instrument, on oath stated that
they were authorized to execute the instrument and acknowledged it
as the Chairman and the Secretary respectively of the Board of the
Yakima International Airport - McAllister Field to be the free and
voluntary act of such party for the uses and purposes mentioned in
the instrument.
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Cas97 .lse 16
LESSEE:
41
CHR . SMITH ••a CAS PROPERTIES
P 0 Box 1602
Portland, Oregon 97207
Phone: 503-241-0615
Fax: 503-241-4063
STATE 'OF C/` 1 ��C__�Y
County cif- e- z ,,.L,
I certify tha'CI know or have satisfactory evidence that Chris A.
Smith signed this instrument nd acknowledged it to be his free and
voluntary act for the uses and purposes mentioned in the
instrument.
Date ,
BY i
Notary b is
Appointment Expi e / /t• ��
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Casp97 .lse 17
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Exhibit B
[INSERT COPY OF AMENDMENT#2]
AIRPORT LEASE AGREEMENT
BETWEEN
YAKIMA AIR TERMINAL-McALLISTER FIELD AND
CAS PROPERTIES
AMENDMENT#2
THIS YAKIMA AIR TERMINAL-McALLISTER FIELD AND CAS PROPERTIES AMENDMENT #2, is
executed this 1st day of November 2018 (the "Effective Date"), between the YAKIMA AIR TERMINAL —
McALLISTER FIELD, a department of the City of Yakima, Washington, hereinafter referred to as
"LESSOR," and CAS PROPERTIES, hereinafter referred to as"LESSEE":
WITNESSETH:
WHEREAS, LESSOR operates the Yakima Air Terminal-McAllister Field; and
WHEREAS, the parties to this amendment are the parties to the underlying property
Lease dated the 27th day February 1997 (the "Original Lease"). All terms defined in the
Lease shall have the same meanings in this Amendment; and
WHEREAS, LESSEE has constructed improvements on the Premises and leased them
to Federal Express Corporation as provided in the Lease; and
WHEREAS, LESSEE has provided proper notice and indicated the desire to make use
of additional space North of the Premises to serve as a parking lot for its equipment and
the vehicles of its employees; and
WHEREAS, LESSOR is willing to lease additional property to LESSEE as included in the
description of Premises set forth below and to consent to its sublease to Federal Express
on the terms and conditions stated below; and
WHEREAS, the Parties agree to extend the lease of the property described in
Amendment #1 on a month to month lease extension beyond the Amendment #1
termination date of September 1, 2018 for the period of time required by LESSEE to
construct a new parking area on the property added by this Amendment#2, which month
to month extension shall terminate on the last day of the month LESSOR receives written
notice of LESSEE's intent to terminate said Amendment#1 leasehold; the monthly lease
payment shall be paid at the same rate as has been paid during the initial term of
Amendment#1 for each month of the extension period and will not be pro-rated from the
monthly rate;
NOW THEREFORE, in consideration of the mutual promises contained herein and the
benefit to be derived by each party, the parties agree to amend the Lease Premises,
Term, Rent, and Notice provisions of the Lease as follows:
1. PREMISES:
Effective as of November 1, 2018, the Premises as described in Section 1 of the Original Lease is
hereby amended so that LESSOR does now hereby lease and let unto LESSEE, and LESSEE
does hereby hire and take from LESSOR, approximately 80,949 square feet of land in the City of
Yakima, Yakima County,Washington,as that property is depicted on Exhibit"A"and as amended,
described and depicted on Exhibit"B", attached hereto and by this reference made a part hereof,
together with the right of ingress to and egress from the leased premises over and across common
public access ways.
One such common public access way shall be an access way no more than fifty(50) feet wide
connecting the leased premises to West Washington Avenue. LESSEE shall be responsible for
all expenses pertaining to the development and maintenance of said access way.
LESSEE shall have the right of ingress and egress for aircraft operations as described on the site
plan as Aircraft Ramp, Exhibit"C" FedEx Yakima Site Plan, dated 2-14-2018. Such area shall be
improved and maintained by LESSEE.
2. TERM:
Section 2 of the Original Lease is hereby deleted in its entirety and replaced with the following:
"2. TERM:
The tenancy created by this Lease shall commence on March 1, 1997 and terminate on February
28, 2037.
LESSEE shall have the option to extend the term by six (6) years and seven (7) months (to wit
March 1, 2037 to September 30, 2043; provided the LESSEE delivers to LESSOR not less than
ninety (90)days before the expiration of the original term written notification of its intent to extend
the term."
4. RENT:
"Section 4.A. RENT" of the Original Lease, as amended by Section 3 of Amendment#1 entered
into by the parties on October 20, 2017, is hereby further amended to add the following as the final
sentences thereof:
"Commencing September 1, 2018, LESSEE promises and agrees to pay rent to LESSOR at the
current commercial/industrial land lease rate per month for the leased premises depicted in Exhibit
B, made in advance on or before the 10th day of each month. Payments shall be made to the City
of Yakima at 129 N. Second Street,Yakima,WA,98903. Any rental payment past due shall accrue
a delinquency charge of twelve percent(12%) per annum."
5. NOTICES:
LESSOR and LESSEE hereby delete the entirety of Section 29 of the Original Lease and replace
it with the following:
"29. NOTICE:
All notices allowed or required hereunder shall be effective if delivered by mail, return receipt
requested at the address shown below unless a different address is designated by a party in writing:
If to LESSOR: YAKIMA AIR TERMINAL-MCALLISTER FIELD
2406 W. Washington Avenue, Suite B
Yakima,Washington 98903
PHONE: (509) 575-6149
FAX: (509)575-6185
If to LESSEE: CHRIS A. SMITH
CAS PROPERTIES
715 2nd Avenue#1903
Seattle,WA 98104
PHONE: 503-887-5915
with copy to: JAMES C.WAGGONER
DAVIS WRIGHT TREMAINE
1300 SW 5th, Suite 2300
Portland, Oregon 97201
PHONE: 503-241-2300
FAX: 503-778-5299"
[SIGNATURE PAGE FOLLOWS]
Other than the specific amendments stated herein, all other terms, conditions, obligations, rights and
requirements of the underlying Lease shall remain in full force and effect throughout the Lease term.
LESSOR:
YAKIMA AIR TERMINAL-McALLISTER FIELD
2406 W. Washington Avenue, Suite B
Yakima, Washington 98903
(509) 575-6149-phone
(509) 575-6185-fax
Cliff ore, C. nager
STATE OF WASHINGTON
County of Yakima
I certify that I know or have satisfactory evidence that Cliff Moore signed this instrument, on oath stated that
he is authorized to execute this instrument and acknowledged it as the City Manager to be the free and
voluntary act of such party for the uses and purposes mentioned in the instrument.
Date -(K 040.
`,f7 Notary Public
B k [X.Q State of Washington
y L- SONYA CLAAR TEE
Notary Public y COMM. EXPIRES. OCT.25,2022
Appointment Expires I 0'ac -)' 0\ COMM. #33005
CITY CONTRACT NO: �l l`' ( d
LESSEE: RES0WTION NO.
CHRIS A. SMITH
CAS PROPERTIES
715 2nd Avenue#1903
Seattle, WA 98104
PHONE: 503-887-5915
CAV
CHRIS A SMITH
Date t I 150 f 20 I&
�v STATE OFW*
tt
qACounty of Yalkirwe ►lOW Ul U
I certify that I know or have satisfactory evidence that Chris A Smith signed this instrument and
acknowledged it to be his free and voluntary act for the uses and purposes mentioned in the instrument.
Date NOV 30 2018
By: Iif,r IIJ�It II
Nota Public j /) sucniy��nw -i r t
Appointment Expires -llama. ° °esc"'t0"t1j[1E►16E
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Exhibit A
Exhibit " 1>>
LESSOR Yakima lnl.ernational Airport
- McAllister Field
LESSEE CAS Properties . 1`-�-
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!WE Exhibit "A" drawng based on A r rl Nstnt Shop
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Exhibit B
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80.94G S.F.TOTAL IN NORTH 10tlt AVENUE, KM I
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ADDITIONAL LEASE AREA MAP '""""°' Roc
X Ass..NONil OF/EU-TX PANKNO AREA 10/1a/2016
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CiA$ PROPERTIES 1O*w
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LEGAL DESCRIPTION OF ADDITIONAL LEASE AREA
NORTH OF PARKING LOT LEASE AREA
THAT PART OF THE NORTHWEST QUARTER OF SECTION 35,TOWNSHIP 13 NORTH, RANGE
18 EAST,W.M.,DESCRIBED AS FOLLOWS:
COMMENCING AT THE SOUTHWEST CORNER OF SAID SUBDIVISION; THENCE NORTH
00°00'25"WEST ALONG THE WEST LINE OF SAID SUBDIVISION 735.67 FEET; THENCE
SOUTH 89°56'40" EAST 344.72 FEET TO THE POINT OF BEGINNING; THENCE CONTINUING
SOUTH 89°56'40"EAST 201.00 FEET: THENCE NORTH 00°03'20"EAST 127.59 FEET TO THE
SOUTHERLY RIGHT LINE OF WASHINGTON AVENUE: THENCE NORTHWESTERLY ALONG
SAID SOUTHERLY RIGHT OF WAY LINE TO A POINT BEARING NORTH 0°03'20"EAST FROM
THE POINT OF BEGINNING; THENCE SOUTH 00°03'20"WEST 163.72 FEET TO THE POINT OF
BEGINNING;
EXCEPT THE SOUTH 77 FEET THEREOF.
CONTAINING 13,606 SQUARE FEET.
PARKING LOT IMPROVEMENTS NORTH OF FEDEX FACILITY
PAVING SPECIFICATION
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LEGAL DESCRIPTION OF PARKING LOT NORTH OF FEDEX FACILITY
THAT PART OF THE NORTHWEST QUARTER OF SECTION 35,TOWNSHIP 13 NORTH, RANGE 18 EAST,
W.M., DESCRIBED AS FOLLOWS:
COMMENCING AT THE SOUTHWEST CORNER OF SAID SUBDIVISION;THENCE NORTH 00°00'25"WEST
ALONG THE WEST LINE OF SAID SUBDIVISION 735.67 FEET; THENCE SOUTH 89°56'40" EAST 344.72 FEET
TO THE POINT OF BEGINNING; THENCE SOUTH 89°56'40" EAST 201.00 FEET;THENCE NORTH 00°03'20"
EAST 77.00 FEET;THENCE NORTH 89°56'40"WEST 201.00 FEET; THENCE SOUTH 00°03'20" WEST 77.00
FEET TO THE POINT OF BEGINNING.
CONTAINING 15,477 SQUARE FEET.
Exhibit C
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EXHIBIT C
FEDF.X YkKIMA PARKING EXPANSI0k,NIS ..
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r FedEa Yakima CAS Properties .,........gi...__—__
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3201 W.Washington Ave.Yakima,Washington 98903 .,„..,,d.,.A ss tor,ros 14,,Val s,
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Exhibit C
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 7.K.
For Meeting of: July 16, 2024
ITEM TITLE: Resolution authorizing an amendment to an airport lease agreement
with CAS Properties for FedEx temporary parking use
SUBMITTED BY: Robert Hodgman, Director of Yakima Air Terminal
SUMMARY EXPLANATION:
FEDEX intends to revise their current footprint of hangar and truck parking area. CAS properties is the
airport LESSEE and FEDEX is sub-LESSEE. This lease amendment will allow the company to move
employee parking on to the adjacent parcel for temporary parking, which will clear the area for the
contractor to complete the construction. The airport will receive an additional monthly $165.83 plus
leasehold tax for a period of six months.
ITEM BUDGETED: No
STRATEGIC PRIORITY: Investment In Infrastructure
RECOMMENDATION: Adopt resolution.
ATTACHMENTS:
Resolution_CAS Properties
2024_CAS_Properties_Amendement_#3.pdf
132