HomeMy WebLinkAboutYakima Airport Business Park, LLC - Lease Agreement - Amendment #4 ORIGINAL
LEASE AGREEMENT
BETWEEN
YAKIMA AIR TERMINAL - McALLISTER FIELD AND
YAKIMA AIRPORT BUSINESS PARK, L.L.C.
LEASE AMENDMENT #4
THIS LEASE AMENDMENT #4, is executed this 12 day of August, 2016,
between the YAKIMA AIR TERMINAL — McALLISTER FIELD, a department of the City
of Yakima, Washington, hereinafter referred to as "LESSOR," and Yakima Airport
Business Park, L.L.C. hereinafter referred to as "LESSEE ":
WITNESSETH:
WHEREAS, LESSOR operates the Yakima Air Terminal - McAllister Field, hereinafter
referred to as "Airport"; and
WHEREAS, LESSOR and LESSEE are in mutual agreement to amend the lease
agreement to reduce the security deposit to one month; and
WHEREAS, LESSOR and LESSEE agree to discontinue the language requiring the
AIRPORT to pay yearly interest on the security deposit outlined in section 5 of the
original agreement; and
WHEREAS, upon execution of this amendment, the LESSOR will refund to LESSEE
half of the security deposit in the amount of $836.22 at which point both parties have
agreed to waive any previous accrued interest on the previous deposit balance; and
NOW THEREFORE, in consideration of the mutual promises contained herein and the
benefit to be derived by each party, the parties agree to amend paragraph 5, of the
underlying Lease as follows:
5. DEPOSIT:
Upon execution of this Lease by both parties, LESSEE shall deposit with
LESSOR the amount of one month's rent plus leasehold tax as a guarantee of
LESSEE's performance of this Lease and the timely payment of the rental
provided for herein; and in the event LESSEE shall fail to pay the rental 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 may be
adjusted from time to time to reflect adjustments in the rent and /or leasehold tax.
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.
Lease: Yakima Airport Business Park Amendment #4
The amendment is effective 7/1/2016.
LESSOR:
YAKIMA AIR TERMINAL - McALLISTER FIELD
2406 W. Washington Avenue, Suite B
Yakima, Washington 98903
(509) 575 -6149 - phone CITY CONTRACT NO: � - 1 S/v
(509) 575 -6185 - fax RESOLUTION NO: 1774
A
C ' Mori?, 'City Manager
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 ,//'? //, Notary Public
By: 44 T7', State of Washington
Notary Pu lic KAARRE ALLYN
Appointment Expires 2 — ; MY COMMISSION EXPIRES
January 12, 2020
LESSEE:
Yakima Airport Business Park, LLC
do Les Frederick
Po Box 8210025
Ke ore, WA 98028 -0997
■
O.
Signature Date
STATE OF WASHINGTON,
County of b n r
I certify that I know or have satisfactory evidence that LES FREDERICK signed this
instrument and acknowledged it to be his free and voluntary act for the uses and purposes
mentioned in the instrument.
Lc. SZ 1 - 0 Ft? eL,D -kte-K
BY: ifiga
Noe- IN a HI/"' )
Appointment Expires
5 1
Lease: Yakima Airport Business Park Amendment #4
AMENDMENT #3 - LEASE AGREEMENT
YAKIMA AIRPORT MAXI-SPACE, L.L.C.
THIS AMENDMENT, executed this ;1'47 day ef / +..kc---; 1999,
between the YAKIMA AIR TERMINAL - McALLISTER ELD, an agency of
the City of Yakima and County of Yakima, Washington, hereinafter
referred to as "LESSOR," and YAKIMA AIRPORT MAXI-SPACE, L.L.C.,
hereinafter referred to as "LESSEE":
WITNESET H:
WHEREAS, LESSOR owns and operates the Yakima Air Terminal -
McAllister Field, hereinafter referred to as "Airport," and
WHEREAS, the Yakima Air Terminal - McAllister Field, as LESSOR and
Yakima Airport Maxi-Space, LLC, as LESSEE, entered into a Lease
effective July 1, 1996, first amended November 1, 1996, second
amendment December 1, 1997, and
WHEREAS, LESSOR has determined it to be in the best interests of
the Airport to modify the following Sections of this Lease:
1. PREMISES
4. RENT (Section A & B - all others remain unchanged)
NOW THEREFORE, in consideration of the mutual promises contained
herein and the benefit to be derived by each party, the parties
agree that the above referenced Sections are amended as follows:
1. PREMISES:
LESSOR does hereby lease and let unto LESSEE, and LESSEE does
hereby hire and take from LESSOR, approximately 55,581 square
feet of land in the City of Yakima, Yakima County, Washington,
as that property is depicted on the drawing marked Exhibit
"A-2," attached hrereto and by this reference made a part
Filename: Lease\Maxi96#3 1
hereof, together with the right of ingress to and egress from
the leased premises over and across common public access ways.
4. RENT:9.1_ 9 s'", 4 • 1 7 - 1 - 0 0 1_ i ff671. 40 / 7 - I - od - •
A. LESSEE promises and agrees to pay rent to LESSOR at the
rate of $5.7-8".1 per month ($.)25/sq ft/year) 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 payment past due shall accrue
a delinquency charge of twelve percent (12%) per annum.
B. Delete
This amendment shall become effective April 1, 1999.
Filename: Lease\Maxi96#3 2
•
LESSOR:
YAKIMA AIR TERMINAL - McALLISTER FIELD
2400 W. Washington Avenue
Yakima, Washington 98903
509-575-6149
. El 'ns, Chairman
Fre raola, Secretary
STATE OF WASHINGTON
County of Yakima
I certify that I know or have satisfactory evidence that William K.
Elkins and Fred S. Iraola 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.
Hates ‘v,‘11111114,
N >\ E
By _
Notary P blic
Appointment Exiri es
cr) PUBLIC
10 , v‘ C , •;
If /111110
Filename: Lease\Maxi96#3 3
LESSEE:
YAKIMA AIRPORT MAXI-SPACE, L.L.C.
c/o Frederick & Associates
1800 Ninth Avenue, #1150
Seattle, Washington 98101-1323
Phone: (206) 625-0259
Fa : (206) 467-7546
....._
Les Frederick, Manager
Yakima Airport Maxi-Space, L.L.C.
STATE OF WASHINGTON
County of k
I certify that I know or have satisfactory evidence that Les
Frederick signed this instrument, on oath stated that he is
authorized to execute the instrument and acknowledged it as the
Manager of Yakima Airport Maxi-Space, L.L.C. to be the free and
voluntary act of such party for the uses and purposes mentioned in
the instrument.
Date
BYN
Notary Public - S e -c* - " 4 "-A• 14 "'"I
Appointment Expires 9^0
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Filename: Lease\Maxi96#3 4
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Exhibit "A-2" to lease agreement between
the Yakima Air Terminal - McAllister Field and
Yakima Airport Maxi Space, LTC.
Total Area, 55,581 sq.ft.
Lease effective date: April 1, 1999
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AMENDMENT #2 - LEASE AGREEMENT
YAKIMA AIRPORT MAXI-SPACE, L.L.C.
A
THIS AMENDMENT, executed this ,-20 d ay if - 1997,
between the YAKIMA INTERNATIONAL AIRPORT - . ISTER FIELD, an
agency of the City of Yakima and County of Yakima, Washington,
hereinafter referred to as "LESSOR," and YAKIMA AIRPORT MAXI-SPACE,
L.L.C., 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, the Yakima International Airport - McAllister Field, as -
LESSOR and Yakima Airport Maxi-Space, LLC, as LESSEE, entered into
a Lease effective July 1, 1996, and amended November 1, 1996, and
WHEREAS, LESSOR has determined it to be in the best interests of
the Airport to modify the following Sections of this Lease:
4. RENT (Subsection C only)
9. YAKIMA AIR FAIR
22. INSURANCE
NON THEREFORE, in consideration of the mutual promises contained
herein and the benefit to be derived by each party, the parties
agree that the above referenced Sections are amended as follows:
4. RENT:
A. (Unchanged)
B. (Unchanged)
C. The lease rental rate as provided for above shall be
subject to review and modification on every two year
anniversary of this Lease and shall be set at the then current
commercial/Industrial rate.
D. (Unchanged)
Maxi96#2.1se 1
„
9. YAKIMA AIR FAIR:
For purposes of this Section, Premises are not part of the
airfield. LESSEE acknowledges that it may be necessary to
curtail some operations on the airfield during the exercise of
the Yakima Air Fair License. LESSEE understands that LESSEE'S
business operations on the airfield may be interrupted during
these dates and will not deem this interruption as a breach of
contract by LESSOR.
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, the City of Yakima and County of Yakima as
additional insureds providing:
1. Comprehensive general liability insurance coverage in
amounts of not less than $1,000,000 per occurrence
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 in the required limits.
Not less than 30 days written notice, or other such 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 such carrier(s) as shall be acceptable to LESSOR.
This amendment shall become effective December 1, 1997.
Maxi96#2.1se 2
YAKIMA INTERNATIONAL AIRPORT - McALLISTER FIELD
2400 W. Washington Avenue
Yakima, Washington 98903
509-575-6149
Bill ' lk' s Ch” rman
,
Iras,a, Secretary
STATE OF WASHINGTON
County of Yakima
I certify that I know or have satisfactory evidence that Bill
Elkins and Fred Iraola 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.
Date r
lBy: ANNIRMIWO
"Not.ry
Appointment Ex. s `7--
Maxi96#2 .1se 3
YAKIMA AIRPORT MAXI-SPACE, L.L.C.
c/o Frederick & Associates
1800 Ninth Avenue, #1150
Seattle, Washington 98101-1323
Phone: (206) 625-0259
Fax: (206) 467-7546
u, (c)
Les Frederick, Manager
Yakima Airport Maxi-Space, L.L.C.
STATE OF WAqHINGTON
County of K
I certify that I know or have satisfactory evidence that Les
Frederick signed this instrument, on oath stated that he is
authorized to execute the instrument and acknowledged it as the
Manager of Yakima Airport Maxi-Space, L.L.C. to be the free and
voluntary act of such party for the uses and purposes mentioned in
the instrument.
4,
Date 411 • -
By r . 4 A
•
Notary Public e_ct,, -Pe LA.6.s. - r w 2
Appointment Expires 9_09-pi _ 07 i
4 011
161
Les Frederick who personally guarantees the performance of Yakima
Airport Maxi-Space, L.L.C. This guarantee shall be effective
July 1, 1996 - June 30, 2001.
STATE OF WASHINGTON
County of
I certify that I know or have satisfactory evidence that Les
Frederick signed this instrument and acknowledged it to be his free
and voluntary act for the uses and purposes mentioned in the
instrument.
••••
Date ask kctql \`‘.1, dor
By. e #
Notary Public -: e4kle_ Ct. ' tri Appointment Expires Expires 9..0q___01
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Maxi96#2.lse 4
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AMENDMENT #1 - LEASE AGREEMENT
YAKIMA AIRPORT MAXI- SPACE, L.L.C.
/ fi t k x J
THIS AMENDMENT, executed this day of - - '- ,1996,
between the YAKIMA INTERNATIONAL AIRPORT - McALLISTER FIELD, an
agency of the City of Yakima and County of Yakima, Washington,
hereinafter referred to as "LESSOR," and YAKIMA AIRPORT MAXI- SPACE,
L.L.C., hereinafter referred to as "LESSEE ":
W I T N E S E T H:
WHEREAS, LESSOR owns and operates the Yakima International Airport
- McAllister Field, hereinafter referred to as "Airport," and
WHEREAS, the Yakima International Airport - McAllister Field, as
LESSOR and Yakima Airport Maxi - Space, L.L.C. as LESSEE, entered
into a Lease effective July 1, 1996, and
WHEREAS, LESSOR has determined it to be in the best interests of
the Airport to modify the following Sections of this Lease:
SECTION 1. PREMISES
SECTION 4. RENT
NOW THEREFORE, in consideration of the mutual promises contained
herein and the benefit to be derived by each party, the parties
agree that Sections 1 & 4 are amended as follows:
1. PREMISES:
LESSOR does hereby lease and let unto LESSEE, and LESSEE does
hereby hire and take from LESSOR, approximately 48,820 sq ft
of land in the City of Yakima, Yakima County, Washington, as
that property is depicted on the drawing marked Exhibit "A-1",
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.
4. RENT:
A. LESSEE promises and" agrees to pay rent to LESSOR at the
maxi96 #1.lse 1
•
rate of $ 406.83 per month for the_leased premises, made in
advance on or before the ,10tdaY of each month. Payments
shall be made to the Yakima international Airport - McAllister
Field in care of the AirpOrt Manager's office. Any rental
payment past due shall accrue a delinquency charge of twelve
percent (12%) per annum.
B. Effective July 1;,19,g7, the rental rate for the premises
shall be increased to 008.54 per onth.
,
C. The lease re tal rate prov':ed by 4.A of this •
section shall be ubject t. review and modification on every
two year anniversa , of is Lease.
The parties shall use a a benchmark for the determination of
any rental rate adjustme changes in the cost of living as
measured by tyro United S ate Bureau of Labor Statistics
Consumer Price Index, Seattl Everett Metropolitan Area, All
Urban Cons.gMers - Base Year 19 4.
D. 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 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 sales person 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. •
•
•
This amendment shall become effective November 1, 1996.
•
•
•
maxi96#1.1se 2
•
, ..„
.,• . ,
YAKIMA INTERNATIONAL AIRPORT - McALLISTER FIELD
2400 W. Washington Avenue
Yakima, Washington 98903
5 9-575-6149
4 0.
Dennis
44m, Chairman
Greg.r Berndt, Secretary
STATE OF WASHINGTON
County of Yakima
I certify that I know or have satisfactory evidence that Dennis
Byam and Gregory P. 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.
Date - , ;2, .
nY: ANIM—_.
No . y ublic
Appointment Exp esz?_ /0 -9g•
maxi96#1.1se 3
YAKIMA AIRPORT MAXI-SPACE, L.L.C.
c/o Frederick & Associates
1800 Ninth Avenue, #1150
Seattle, Washington 98101-1323
Phone: (206) 625-0259
Fa : (206) 467-7546 fs ,
A-1.-A-
- 0 ' 2
Les Frederic , Manager
Yakima Airport Maxi-Space, L.L.C.
STATE OF WASHINGTON
County of -Ym14-14141---/1;%W...
I certify that I know or have satisfactory evidence that Les
Frederick signed this instrument, on oath stated that he is
authorized to execute the instrument and acknowledged it as the
Manager of Yakima Airport Maxi-Space, L.L.C. to be the free and
voluntary act of such party for the uses and t k.3..7 mentioned in
the instrument. L. Mc N
.1 0 C1 4‘
Date Q//, -5 7F f e01
,
44 .:" An jf ',
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Les Frederic who personally guarantees the performance of Yakima
Airport Maxi L.L.C. This guarantee shall be effective
July 1, 1996 - June 30, 2001.
STATE OF WASHINGTO
County of ' /W6-
I certify that I know or have satisfactory evidence that Les
Frederick signed this instrument and acknowledged it to be his free
and voluntary act for the uses and purposes mentioned in the
instrument.
Date
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4 / a4/ 240 / .7F4. - <i't -, i,'
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Enlarged Ivr ,,
Exhibit A-1"
t - -------,,, 4 .
Yakima Airport Maxi—Space L.L.C.
• Effective November 1, 1996
Exhibit -A-1: Replaces Exhibit "A", Dated June 1. 1996
fixtablt "A-1" adds 21,614 sq ft to leased site area
48,820 sq.ft.
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AIRPORT LEASE AGREEMENT
YAKIMA AIRPORT MAXI-SPACE, L.L.C.
THIS LEASE, executed this day of , 199(-, between
the BOARD of the YAKIMA INTERNATIONAL AIRPORT - McALLISTER FIELD,
an agency of the City of Yakima and County of Yakima, Washington,
hereinafter referred to as "LESSOR" and YAKIMA AIRPORT MAXI-SPACE,
L.L.C. hereinafter referred to as "LESSEE":
W I T N E S E T 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:
I —
LESSOR does hereby lea and let unto LESS 4 , and LESSEE does
hereby hire and take from LE.S,SOR, approximately 27,206 sq ft
of land in the City of Yakimaakima County, Washington, as
that property is depicted on the' rawing marked Exhibit "A",
attached hereto and by this refer-qce made a part hereof,
together with the right of ingress - be and egress from the
leased premises over and across common pb.lic access ways.
2. TERM:
The tenancy created by this Lease shall commence on July 1,
1996 and terminate on June 30, 2036, unless otherwise
terminated as provided for herein. LESSEE may extend this
Lease for a period of ten (10) years through June 30, 2046, -
upon notifying the LESSOR in writing prior to February 23,
2036,
3. MORTGAGE:
LESSEE and his assigns shall have, and are hereby given, the
right to mortgage the leasehold created by this Lease for any
amount not to exceed the possessory interest of the LESSEE and
Maxispac.lse 1
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 mortgagee's address and
loan number. LESSOR shall have no right to terminate this
Lease or retake possession of the premises or expel LESSEE
unless thirty (30) days' advance written notice of such
default is given by the LESSOR to LESSEE and LESSEE's
mortgagee at the last address provided in writing by LESSEE 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.
LESSOR agrees to cooperate with mortgagor regarding acceptable
language and conditions that the mortgager may deem necessary,
provided that LESSOR shall not be required to grant to
mortgagor rights in the property greater than LESSEE'S rights
hereunder.
4. RENT: cu-li end
A. LESSEEopromises and agrees to pay rent to LESSOR at the
rate of $22.72 per month for the leased premises, made in
advance on o\17 before the 10th day of each month. Payments
shall be made fo, the Yakima International Airport - McAllister
Field in care o. the Airport. Manager's office. Any rental
payment past due Shall accrue a delinquency charge of twelve
percent (12%) per annum.
B. Effective July 1, 1997, , the rental rate for the premises
shall be increased to $283.40 per month.
C. The lease rental rate provided by subparagraph 4.A of this
section shall be subject to review and modification on every
two year anniversary of this Lease.
The parties shall use as a benchmark for the determination of
any rental rate adjustment changes in the cost of living as
measured by the United State BureaU of Labor Statistics
Consumer Price Index, Seattle/Everett Metropolitan Area, All
Urban Consumers - Base Year 1984.
D. In the event the parties are unable to a ee upon the fair
Maxispac.lse 2
marlce't, 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, therQatter of establishment of fair market rental
shall be referred to arbitration. Within thirty 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 sales person 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 paKties shall bear the cost of
its designated arbitrator. The pa ties shall share equally
the expense of the third arbitrator. he arbitration decision
shall be binding upon both parties and ki be enforceable in
accordance with the laws of the Stateof Washington. The
arbitrator's decision shall relate back to the beginning of
the new rental period.
4 ,-- --
5. DEPOSIT: .: f
'''
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 rental provided for
herein; and in the event LESSEE shall fail to pay the rental
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.
Effective on the third anniversary of this Lease and annually
each year thereafter on the anniversary date of this Lease,
LESSOR shall pay LESSEE interest on the deposit. The interest
rate shall be the average rate earned by LESSOR on its
investment deposits for the preceding calendar year.
6. TAXES AND LIENS:
In addition to the rental reserved 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
Maxispac.lse 3
. .
•
other encumbrance on the leased premises by reason of LESSEE's
occupancy thereof other than the liens specifically permitted
under Section 3 above. LESSEE agrees to indemnify LESSOR and
shall hold LESSOR harmless from any such taxes and liens.
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 of the property 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 pay and be responsible for all utility services,
including but not limited to, electricity, natural gas, water,
sewer, and garbage service.
9. YAKIMA AIR FAIR:
LESSEE acknowledges that it nafbe necessary to curtail some
operations during the ex'crf of the Yakima Air Fair License.
LESSEE understands pat LESSEE's business may be interrupted
during these dates( and will not deem this interruption as a
breach of contia by LESSOR.
10. PREMISES CONDITION:
LESSEE has made a full inspection of the property, is fully
aware of its condition, 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 the
LESSEE'S business.
11. MAINTENANCE OF LEASED AREA:
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
Maxispac.lse 4
fixtures and other improvements, existing and fuLure, in an
attractive and usable manner as determined by the Airport
Manager and consistent with other properties at the Yakima Air
Terminal. 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 unreasonably
withheld.
13. IMPROVEMENTS
All buildings, trade fixtures and other improvements to the
leased premises by LESSEE shall conform to applicable
construction codes as well as all applicable laws, regulations
and directives of jurisdictional governmental entities, and
LESSEE shall procure all building and other permits therefor.
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
therefor 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.
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.
LESSEE agrees to relocate Airfield perimeter security fencing
as required in writing by the Airport Manager.
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
used in the ordinary course of business by LESSEE or its
subtenant and affixed by LESSEE or the subtenant. 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 satisfaction of the Airport
Manager. Fixtures not removed within thirty (30) days after
termination become the property of the LESSOR unless other
Maxispac.lse 5
arrangements have been 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, 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 any 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:
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
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 riot sublet any part of the premises without the
prior written approval of LESSOR, such approval not to be
unreasonably withheld. Subleases shall give preference to
aeronautical activities and shall comply with all laws,
ordinances, rules, regulations and policies applicable 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. A
Maxispac.lse 6
, .
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. LESSEE agrees that all
sub-lease agreements with non-aviation oriented tenants will
contain a provision that said agreements would be canceled
upon 120 days prior written notice, should an aviation
oriented sub-tenant be secured.
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.
Should LESSEE exercise a renewal option, if any, income
derived from sub-leasing in the renewal term shall be
distributed to LESSOR in accordance with its policy on SUB-
LEASING INCOME in effect at the time of renewal.
LESSEE hereby assumes an affirmative duty to inquire at the
time of renewal as to the SUB-LEASING INCOME policy in effect
at that time.
le. ASSIGNMENT:
LESSEE shall not assign this Lease without the prior written
approval of the LESSOR; such approval not to be unreasonably
withheld. Such assignment shall be in conformance with
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,
facilities and operations as those laws, ordinances, rules,
regulations and policies now exist or may hereafter become
effective. A consent to assign by LESSOR shall not be
construed as 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 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.
Maxispac.lse 7
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 deemed
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 to 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 of America 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 agreement with the United States of America.
F. This Lease shall be subordinate to the provisions of any
existing or future agreement between LESSOR and the United
States of America related 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.
Maxispac.lse 8
20. LESSOR REPRESENTATIONS:
A. As of the date hereof, there are no laws, regulations,
rules, or policies 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 final execution.
21. INDEMNITY/DUTY TO DEFEND:
A. At no expense to LESSOR, LESSEE shall defend against and
indemnify fully and save harmless the Board of the Yakima
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 and 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 from
any act or omission of LESSEE, its employees, agents,
servants, invitee, 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
Maxispac.lse 9
LESSEE shall have the right to investigate, compromise and
defend the same to the extent of its interest.
B. LESSEE agrees to reimburse LESSOR for any damage to the
premises caused by the occupancy of LESSEE its employees,
agents, servants, invitee, independent contractors or any
other person acting on behalf of LESSEE or under its
direction.
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
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 environmental ordinance,
statute, law, rule or regulation. The provisions of this Sub-
Section shall survive the termination of the lease.
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, the City of Yakima and County of Yakima as
additional insureds providing:
1. Comprehensive general liability insurance coverage in
amounts of not less than $2,000,000 per occurrence
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 in the required limits.
Maxispac.lse 10
Not less than 30 days written notice, or other such 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 such 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 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 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.
Notice shall be deemed received three (3) days after mailing
to LESSEE at the address below LESSEE'S signature to this
Lease or such other address as the parties may advise each
other in writing.
B. As additional and not alternative remedy, optional with
LESSOR and upon thirty (30) 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 (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
Maxispac.lse 11
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 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 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 occupied by LESSEE and shall
restore the premises to LESSOR in the same condition as when
originally occupied, normal wear and tear excepted. If LESSEE
fails to remove its 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.
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 premises 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) shall have the option to cure any default under this
Section.
2G. VENUE, ATTORNEY FEES:
In the event of litigation to enforce the rights and
obligations hereunder, venue shall lie in Yakima County
Maxispac.lse 12
Superior Court, and the prevailing party shall be entitled to
its reasonable attorney fees in addition to court costs.
27. NON CLAUSE:
In the event LESSEE engages in service to the public in its
business conducted on or from the leased premises, LESSEE
agrees and promises to furnish such services to the public on
a fair, equal and not unjustly discriminatory basis to all
users thereof, and to charge fair, reasonable and not unjustly
discriminatory prices for each unit of service, provided, that
LESSEE may be allowed to make reasonable and nondiscriminatory
discounts, rebates or other similar types of price reductions
to volume purchasers of LESSEE's services. LESSEE further
promises and agrees that it will not discriminate or permit
discrimination against any person or group of persons in any
manner prohibited by federal or Washington State law or
regulations. LESSEE's breach of any promise or agreement
contained in this Section shall constitute grounds for the
termination of this Lease, and in addition thereto, LESSOR
shall have the right to take such other remedial action as the
United States Government may direct.
28. CIVIL RIGHTS PROVISION:
LESSEE assures that it will comply with pertinent statutes,
Executive Orders and such rules as are promulgated to assure
that no person shall, on the grounds of race, creed, color,
national origin, sex, age, or handicap be excluded from
participating in any activity conducted with or benefiting
from Federal assistance. This Provision obligates LESSEE or
its transferee for the period during which Federal assistance
is extended to the airport program, except where Federal
assistance is to provide, or is in the form of personal
property or real property or interest therein or structures or
improvements thereon. In these cases, the provision obligates
the party or any transferee for the longer of the following
periods:
A. The period during which the property is used by the
sponsor or any transferee for a purpose for which Federal
assistance is extended, or for another purpose involving the
provision of similar services or benefits; or
B. The period during which the airport sponsor or any
transferee retains ownership or possession of the property.
In the case of contractors, this Provision binds the
contractors from bid solicitation period through the
completion of the contract.
Maxispac.lse 13
29. DEPARTMENT OF TRANSPORTATION TITLE VT ASSURANCES:
LESSEE for himself, personal representatives, successors in
interest, and assigns, as a part of the consideration hereof,
does hereby covenant and agree as a covenant running with the
land, that:
A. No person on the grounds of race, color, or national origin
shall be excluded from participation in, denied the benefits
of, or be otherwise subjected to discrimination in the use of
said facilities,
B. That in the construction of any improvements on, over, or
under such land and the furnishing of services thereon, no
person on the grounds of race, color, or national origin shall
be excluded from participation in, denied the benefits of, or
otherwise be subjected to discrimination,
C. That LESSEE shall use the premises in compliance with all
other requirements imposed by or pursuant to 40 CFR Part 21,
Nondiscrimination in Federally Assisted Programs of the
Department of Transportation, and as said Regulation may be
amended.
30. INTEGRATION:
This document embodies the entire Lease 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.
Time is of the essence of this entire Lease.
Maxispac.lse 14
LESSOR;
BOARD OF THE YAKIMA INTERNATIONAL AIRPORT -
McALLISTER FIELD
2400 W. Washington Avenue
Yakima, Washington 98903
509-575-6149 (phone)
50 (fax)
_
- ,
nis By , Cflairman
Ormmmi P .1f ecretary
1 .7 /
STATE OF WASHINGTON
County of Yakima
/$ E, fic_ r s
I certify that I know or have satisfactory evidence that Dennis
Byam and He-1-ga- graman signed this instrument, on oath stated that
they were authorized to execute the instrument and acknowledged it
as the Chairman and the respectively of the Board of the
Yakima International Airport - McAllister Field to be the free and
voluntary act of such pity for the uses and purposes mentioned in
the instrument. 1- r - r - ecc r I,
Da-t -
14() ry Ablic
Appointment Expires,' /0-Y
Maxispac.lse 15
YAKIMA AIRPORT MAXI-SPACE, L.L.C.
PA:e cLe
I.
A-0e vrcl
St°4
Phone C ...
Fax
Les Frederick, Manager, Setc.tC0.....c_eet5 LLC-
STATE OF WASHINGTON
County of Yakima
I certify that I know or have satisfactory evidence that Les
Frederick signed this instrument, on oath stated that he is
authorized to execute the instrument and acknowledged it as the
Manager of Yakima Airport Maxi -Space,.L.L.C. to be the free and
voluntary act of such party for the u5„-..,4.. mentioned in
the instrument. -- kV \
41,-.1, 0
„ox
Date ( 41 / ( 1 / 4 - 1 rly sk..
/
By 5, %0TARkS:
Notary P blic *:".;
f
Appointment ExpiresrLIto 91AL
7
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A k t '' W& , %• 4 ••4"
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4°. i
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Les Frederick who personally guarantees the performance of Y akima
Airport Maxi-Space, L.L.C. This guarantee shall be effective v
July 1, 1996 - June 30, 2001.
STATE OF WASHINGTON
County of Yakima
I certify that I know or have satisfactory evidence that Les
Frederick signed this instrument and acknowledged it to be his free
and voluntary act for the uses and purposes men ioned in the
instrument.
Date
N A , 14 K0
11
By: 1(—,4
Nota2-* Public ..
Appointment Expires te-7
PUBLIC *
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