No preview available
HomeMy WebLinkAboutR-2025-007 Resolution authorizing an amendment to the Fuel Farm lease agreement with Makito Aviation for the rental adjustment period RESOLUTION NO. R-2025-007 A RESOLUTION authorizing amendment to the Fuel Farm lease agreement with Makito Aviation, LLC for property located at 2401 S. 21st Ave, Yakima Air Terminal-McAllister Field. WHEREAS, the City owns and operates Yakima Air Terminal-McAllister Field in accordance with applicable Federal, State and Local regulations; and WHEREAS, the airport has property available for lease within parcel number 18120221004, which property is located at 2401 S. 21st Ave, Yakima, Washington 98903; and WHEREAS, Yakima Air Terminal- McAllister Field and the Makito Aviation entered into an Airport Lease Agreement (Fuel Farm) at 2401 S 21st Ave, Yakima, Washington effective November 19, 2024; and WHEREAS, the parties wish to amend that agreement to allow for an adjustment to the rental rate adjustment period; and WHEREAS, the City Council has determined that approval of the attached Lease amendment is in the best interests of the City of Yakima and will promote the purposes of the Yakima Air Terminal-McAllister Field, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager is hereby authorized and directed to execute the attached Lease amendment with Makito Aviation, LLC., for a lease of Yakima Air Terminal-McAllister Field property located at 2401 S. 21st Ave, Yakima, Washington 98903 in accordance with the terms set forth therein. ADOPTED BY THE CITY COUNCIL this 7th day of January, 2025. i UQ Qgtf w1/4KI `�� Patricia Byer Mayor ATTEST: •....Mq �'��� • *— • '► * :•SEAL •: *' ' '� • • -* : "osalinda lbarra, City Clerk 1 AMENDMENT #1 TO LEASE AGREEMENT "FUEL FARM" BETWEEN CITY OF YAKIMA AND MAKITO AVIATION, LLC 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 MAKITO AVIATION, a Limited Liability Corporation hereinafter referred to as "LESSEE": WHEREAS, the LESSOR and the OPERATOR entered into an Airport Lease Agreement at 2401 S 21st Ave, Yakima, Washington effective November 19, 2024; and WHEREAS, the parties wish to amend that agreement to allow for an adjustment to the rental adjustment period; NOW, THEREFORE, in consideration of the mutual covenants, promises, and agreements set forth herein, it is agreed by and between LESSOR and LESSEE that the lease shall be amended as follows: Each party acknowledges this is a new amendment to the underlying lease dated November 19, 2024, 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 November 19, 2024, 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 1st, 2025 through the entirety of the contract unless further amended. 1. Under Section 3. RENT, replace current paragraph 3.B with the following: 3.B The lease rental rate provided for above shall be determined by the Airport Rates and Fees which are established and approved by Yakima City Council. These Rates and Fees are outlined in the City of Yakima Master Fee Schedule. For the purposes of this lease, the rental rate will be adjusted based on the Aviation Land rate set in the Airport Rates and Charges. This rate is subject to review and modification January 1st annually. The 2024 rate is $0. 22 per square foot/year at a monthly rate of$641.67. The 2025 rate is $0.25 per square foot/year at a monthly rate of$729.17. (1) The term "fair market value" means the most probable annual rate in terms of money which the Premises, (which excludes those improvements owned by the Lessee), would bring if exposed for lease in the open market for similarly situated properties, with a reasonable time allowed to find a Lessee, and with full knowledge of the highest and best use to which the Premises could be put Yakima Airport—McAllister Field Ground Lease Amendment—Amendment#1 for 2401 S t 21st Ave "MAKITO—Fuel Farm" consistent with the then most current Airport Master Plan and Federal Aviation Administration ("FAA") regulations. (2) Airport Rates and Fees are reviewed and adjusted on an annual basis and approved via resolution by the Yakima City Council. Rental rates are subject to increase or decrease based on modifications made to the Airport Rates and Fees. 2. Section 29, replace the Makito Aviation address with: 12008 89th PI. NE, Kirkland, WA 98034 3. Under Section 39, replace the Makito Aviation address with: 12008 89th PI. NE, Kirkland, WA 98034 Yakima Airport—McAllister Field Ground Lease Amendment—Amendment#1 for 2401 S 2 21st Ave "MAKITO—Fuel Farm" LESSOR CITY OF YAKIMA AIRPORT YAKIMA AIR TERMINAL— MCALLISTER FIELD 2406 W. Washington Avenue, Suite B Yakima, Washington 98903 (509) 575-6149_ phone (509) 575761.S5-fax Date: ' I S)a). ctoria Baker, Ci nager y �� V AKlggq `-1� CITY CONTRACT Ngg.�4"•w_!"Q'Y1O�#- • bL -S-ors ATTEST '•�*�''• l�/ SEALESOLUTION N0: •' By: •. /.l �. i Ros-linda Ibarra, City Clerk .1'‘1‘SNi .7.• STATE OF WASHINGTON ) ss County of Yakima19.)63C) I certify that I know or have satisfactory evidence that \bely"' — signed this instrument, on oath stated that they are 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 gaiuio 2- � NOTARY By: �-- nro.107265 N = Notary Public th State of Washington Pf18LIC Residing at: %�''�C o�lr5/20?5• .�O\\�� Appointment pires (,4S1?Y) S Yakima Airport—McAllister Field Ground Lease Amendment—Amendment#1 for 2401 S 3 21st Ave "MAKITO—Fuel Farm" LESSEE Makito Aviation Rachel Maclean 12008 89th PI. NE Kirkland, WA 98034 (425) 802-6677 By: Rachel Maclean, Owner Date: J 2-1-(- 1 I'D STATE OF WASHINGTON ) ) ss County of YAKIMA ) I certify that I know or have satisfactory evidence that Rachel Maclean signed this instrument, on oath stated that they are authorized to execute the instrument and acknowledged it as owner of Makito Aviation, LLC, to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. Date ` iDS/7/0t4- ii7UAA,, By: i Notary Public Notary Public for the State of WASHINGTON State of Washington Residing at: AMIT K. PATEL Appointment Expires D\ `t c/ 207-b Lic. No. 147047 i MY COMMISSION EXPIRES January 10,2026 Yakima Airport—McAllister Field Ground Lease Amendment—Amendment#1 for 2401 S 4 21st Ave "MAKITO—Fuel Farm" 77, 7-A • l '- • _____„! BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 7.K. For Meeting of: January 7, 2025 ITEM TITLE: Resolution authorizing an amendment to the Fuel Farm lease agreement with Makito Aviation for the rental adjustment period SUBMITTED BY: Robert Hodgman, Director of the Yakima Air Terminal SUMMARY EXPLANATION: The Yakima Air Terminal and Makito Aviation entered into an Airport Lease Agreement at 2401 S 21st Ave, Yakima, Washington effective November 19, 2024. The parties wish to amend that agreement to allow for an adjustment to the rental adjustment period. ITEM BUDGETED: Yes STRATEGIC PRIORITY 24-25: A Resilient Yakima RECOMMENDATION: Adopt Resolution. ATTACHMENTS: Resolution Lease amendment Fuel Farm Final.docx 2024 12 02 Makito Fuel Farm Lease Amendment #1 JV.docx