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Home My WebLink About01/04/2022 06.E. Resolution authorizing an amendment to the Lease Agreement with D.A. Arthur, Inc. for property located at 2520 West Washington Avenue 1 14-41 ,\ • i rr 11 i � "i enc u nrry 1 BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 6.E. For Meeting of: January 4, 2022 ITEM TITLE: Resolution authorizing an amendment to the Lease Agreement with D.A.Arthur, Inc. for property located at 2520 West Washington Avenue SUBMITTED BY: Jaime Vera,Acting Airport Manager SUMMARY EXPLANATION: The City currently has a Lease Agreement with D.A.Arthur, Inc. for airport property. D.A.Arthur, Inc. intends to do significant improvements to the building on the property and would like to extend the long-term lease out to September 30, 2063. It currently expires on September 30, 2042. At the expiration of the Lease, the City retains all the buildings and improvements on the property. ITEM BUDGETED: NA STRATEGIC PRIORITY: Economic Development APPROVED FOR SUBMITTAL BY THE CITY MANAGER RECOMMENDATION: Adopt resolution. ATTACHMENTS: Description Upload Date Type D Res-Lease Agmt Amendment-City YAT&D.A.Arthur 12/15/2021 Resolution Inc. D City YAT&D.A.Arthur, Inc.-Airport Lease Agmt- 12/15/2021 Contract Amendment#4 2 RESOLUTION NO. R-2022- RESOLUTION authorizing an amendment to the Lease Agreement between the City of Yakima/Yakima Air Terminal-McAllister Field and D.A. Arthur, Inc. for property located at 2520 West Washington Avenue. WHEREAS, the City owns and operates Yakima Air Terminal-McAllister Field in accordance with applicable Federal, State and Local regulations; and WHEREAS, the airport entered into a Lease Agreement with Albert and Iva DeAtley on October 1, 1987 for property known generally as 2520 West Washington Avenue; and WHEREAS, the DeAtley Lease was sold to and assigned to D.A. Arthur, Inc. on October 30, 2013; and WHEREAS, D.A. Arthur, Inc. provided notice to the City that it desires to construct at least $200,000.00 worth of improvements to the building currently located on the property and will provide proof of the expenses incurred on the improvements and updated facility plans to the City upon completion to prove costs; and WHEREAS, these improvements will increase the property's value and the facility; and WHEREAS, the facilities revert back to the City at the end of the lease term; and WHEREAS, in exchange for these improvements and costs, D.A. Arthur, Inc. requested that the term of the Lease Agreement be extended to terminate on September 30, 2063 (the Lease is currently set to expire on September 30, 2042); and WHEREAS, the City Council has determined that approval of the attached Amendment to the Lease agreement 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 Amendment #4 to the Lease Agreement between the City of Yakima/Yakima Air Terminal-McAllister Field and D.A. Arthur, Inc., for a lease of Yakima Air Terminal-McAllister Field property located at 2520 West Washington Avenue, Yakima, Washington 98903 in accordance with the terms set forth therein. ADOPTED BY THE CITY COUNCIL this 4'h day of January, 2022. , Mayor ATTEST: Sonya Clear Tee, City Clerk 3 AIRPORT LEASE AGREEMENT BETWEEN CITY OF YAKIMA YAKIMA AIR TERMINAL-McALLISTER FIELD AND D.A. ARTHUR INC. AMENDMENT #4 THIS AMENDMENT, executed this 4th day of January, 2022, between the CITY OF YAKIM and YAKIMA AIR TERMINAL — McALLISTER FIELD, a department of the City of Yakima, Washington, hereinafter referred to as "LESSOR," and D. A. ARTHUR INC:, hereinafter referred to as "LESSEE": WITNESETH: 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 Albert and Iva DeAtley, as LESSEE, entered into a Lease effective October 1, 1987, and amended February 1, 2001, which lease was assigned to Janet DeAtley Leduc from Albert and Iva DeAtley on July 1, 2001, and which lease was assigned to D. A. ARTHUR INC. on October 30, 2013; and WHEREAS, LESSEE has provided proper notice and indicated the desire to construct at least $200,000 worth of improvements to the original building, which will improve the building's infrastructure to ensure the building is in good state of repair; and WHEREAS; LESSEE has agreed to provide all receipts associated with these improvements to LESSOR at the time of completion as well as any updated facility plans, construction permits, and other applicable documentation; and WHEREAS, these improvements will increase the property's value and longevity of the facility at which at the end to the term of the agreement the facilities will revert back to City ownership as outlined within Section 11 Reversion of Improvements Upon Termination as outlined in the original airport rental agreement dated 17th, of September, 1987; and WHEREAS, LESSEE in exchange for these improvements has requested the term of the agreement be extended;another twenty (20)years and terminate on September 30,2063; and 4 WHEREAS, LESSOR has determined it to be in the best interests of the Airport to modify the term of this Airport Lease Agreement; NOW, THEREFORE, in consideration of the mutual promises contained herein and the benefit to be derived by each party; the parties agree to amend Section 2 of the lease as follows: 2. TERM: The tenancy created by this Agreement shall commence October 1, 1987 and expire September 30, 2063. All rental payments shall be made monthly in advance. The first such payment shall be due on or before October 1, 1987. Any rental payment past due shall accrue a delinquency fee of twelve percent (12%) per annum. This amendment shall become effective 4th, day of January, 2022. Except as expressly amended by this document, all other terms, conditions, obligations, rights and requirements of the underlying Lease Agreement and its amendments shall remain in full force and effect throughout the Lease term. Time is of the essence of this entire Lease. • LESSOR: CITY OF YAKIMA YAKIMA AIR TERMINAL - McALLISTER FIELD 2406 West Washington Avenue, Suite B Yakima, Washington 98903 (509) 575-6149 (509) 575-6185 (fax) Bob Harrison, City Manager STATE OF WASHINGTON County of Yakima I certify that I know or have satisfactory evidence that Bob Harrison signed this instrument, on oath stated that they were authorized to execute the 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: By: Notary Public Appointment Expires 6 LESSEE: DA ARTHUR, INC. 220 W. Yakima Ave Yakima, WA 98902 Phone: (509) 952-7773 siZerL\ pnts,ord 17 1 J 2\ DA ARTHUR, INC. Date STATE OF WASHINGTON County of Yakima I certify that I know or have satisfactory evidence that Danny Day signed this instrument, on oath stated that he was authorized to execute the instrument and acknowledged it as the Owner of DA Arthur, Inc., to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. Date / — \\ By: � 0 •:,,o„z40 Notary Public •'?p Appointment Expires It-- 1�2Q�3 �_ COMA'• Q��