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HomeMy WebLinkAboutR-1991-D6001 Airport Property• • RESOLUTION NO. D` 6001 A RESOLUTION. authorizing the execution of a Purchase and Sale Agreement of leasehold and improvements for certain real property located at 2008 West Washington Avenue, Yakima, Washington. WHEREAS, the City of Yakima and Yakima County are joint owners of the Yakima Air Terminal; and, WHEREAS, under that certain lease agreement between Mr. Wayne Turner d/b/a Corporate Aircraft and the Airport Board originally dated February 8, 1982, the lessee's interest in which has passed to Wayne Turner d/b/a Corporate Aircraft, it is specified that, if Mr. Turner receives a bona fide offer from a third party to purchase the leasehold interest, the Airport has thirty (30) days in which to exercise its right and option to purchase said interest on the same terms and conditions as the intended sale; and, WHEREAS, Mr. Turner has received such a bona fide offer; and, WHEREAS, the City of Yakima desires to purchase said leasehold interest andimprovements to allow for effective planning of future terminal areaimprovements and to facili- tate increased control of the types ofbusinesses. locating in the terminal area, insuring compatibility with surrounding businesses and activities; and, WHEREAS, Yakima County has expressed its intention to pay one-half of the purchase price of the leasehold interest; and WHEREAS, the above -referenced leasehold interest has been offered for sale to the ,City of Yakima and Yakima County for the purchase price of One Hundred Twenty -Five Thousand Dollars ($125,000), plus the cost to test and inspect three buried fuel tanks, such costs not to exceed Three Thousand, Five Hundred Dollars ($3,500) making the total possible purchase price One Hundred Twenty -Eight Thousand, Five Hundred Dollars (5128,500); and (Res/Terminal) Page 1 WHEREAS, the ' Ci'ty Cou=ncil deems it to be in the best interest of the City of Yakima to purchase said leasehold interest and improvements jointly with Yakima County and enter into the attached purchase and sale agreement, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager and City Clerk are hereby authorized and directed to execute the attached and incorporated Purchase and Sale Agreement, and the City Manager is hereby authorized and directed to proceed with the purchase of said property. Moreover, the City Manager and City Clerk are hereby autho- rized and directed to execute the attached and incorporated Agreement to Divide Costs of Purchasing Leasehold Improve- ments. ADOPTED BY THE CITY COUNCIL this // day of £7- h.L,, 1991. ATTEST: City Clerk (Res/Terminal) Page 2 C)ct-t vit4 cif Mayor Fidei Title Company 406 NORTH SECOND STREET • PHONE 248-6210 • P 0 BOX 1682 • YAKIMA, WASHINGTON 98907 Jeff B. West Assistant City Attorney 201 E. Lincoln, Suite 5 Yakima, WA 98901 OCT 17 1991 CITY LEGAL DEPT. October 16, 1991 Escrow No. 28379 Property Address: 2008 W. Washington Yakima, WA 98903 In connection with the above numbered escrow, we enclose the following which should be retained by you as part of your permanent record: Escrow Closing Statement/HUD (PLEASE RETAIN FOR YOUR TAX RECORDS) Original Warranty Bill of Sale Original Agreement for Sale and Purchase of Leasehold Improvements It has been a pleasure serving you in this transaction, and if we can be of further assistance to you, please do not hesitate to call us. Sincerely, Fide]„i_ty Tit ,e Co. ANN M. WILSON "OUR NAME SAYS IT ALL' City of Yakima, State of Washington Yakima County, State of Washington City Hall Yakima, WA 98901 Property: 2008 W. Washington, Yakima, WA 98903 CLOSING STATEMENT CONSIDERATION: Sales Price Inspection Fee Closing Date: October 8, 1991 Escrow No. 28379 Page 1 DEBITS CREDITS 125,000.00 1,800.00 DEPOSITS: Deposit By: City of Yakima, State of Washi 63,782.44 Deposit By: YAKIMA COUNTY 63,782.43 PRORATIONS: County Taxes at $1188.69 per 6 months From 10/08/91 to 12/31/91 547.12 ESCROW FEES: 1/2 Settlement Fee 217.75 Totals THIS DOCUMENT WAS PREPARED BY: 127,564.87 127,564.87 FIDELITY TITLE COMPANY 406 NORTH SECOND STREET YAKIMA, WA 98901 SAVE FOR INCOME TAX PURPOSES WARRANTY BILL OF SALE Corporate Aircraft Services Inc. and Wayne G. Turner, individually, "Grantor," of 2008 West Washington, City of Yakima, County of Yaki- ma, State of Washington, in consideration of One Hundred Twenty -Six Thousand, Eight Hundred Dollars ($126,800.00) paid me bv the City of Yakima and Yakima County, "Grantee," of City of Yakima, City Hall, 129 North 2nd Street, Yakima, Washington, 98901 and County of Yakima, Yakima County Courthouse, 128 North 2nd Street, Yakima, Washington, 98901 respectively, receipt of which is hereby acknow- ledged, do grant, sell, transfer, warrant, and deliver to Grantee the following personal property and leasehold interest: All right, title, and interest in that certain Airport Lease Agreement originally dated Febru- ary 8, 1982, lessee's interest in which has passed to Grantor herein, commonly known as 2008 West Washington, Yakima, Washington, including, without limitation all buildings and improvements situate on the leased premises. The term "improvements" includes buildings and all fixtures (trade or otherwise) attached thereto on August 29, 1991. Grantee shall have all rights and title to the goods in themselves and their executors, administrators, and assigns. Grantor warrants he is the lawful owner of the leasehold interest, buildings, and fixtures and the same are free from all encum- brances. Grantor has good right to sell the leasehold interest, buildings, and fixtures and will warrant and defend the right against the lawful claims and demands of all persons. Further, Grantor will indemnify Grantee for any loss, cost, or expense, including legal fees, which result from breach of these warran- ties. Grantee will defend, hold harmless, and indemnify Grantor in any future litigation or claim that may arise in connection with the use or removal of the three known underground storage tanks located on the leased premises. Page 1 of 2 (miscibillsale.jw) In witness whereof, Grantor has executed this agreement at the City of Yakima on the 8th day of October, 1991. CORPORATE AIRCRAFT SERVICES, INC. By: (J) 'ayn G. Turner, President Wayne G. Turner, Individually STATE OF WASHINGTON ) :ss. County of Yakima I certify that I know or have satisfactory evidence that Wayne Turner, individually, signed this instrument, and on oath stated that he was authorized to execute the instrument and acknowledged it as the President of Corporate Aircraft Services, Inc., to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. Dated: Page 2 of 2 (misc/bilisale.jw) 9/ It' /4-4 toOTARY PUBLIC in and for the State f Washington, residing at Yakima. My commission expires: AGREEMENT FOR SALE AND PURCHASE OF LEASEHOLD IMPROVEMENTS The parties to this Agreement are CORPORATE AIRCRAFT SERVICES, INC., a Washington corporation, and WAYNE G. TURNER, individually, collectively referred to as "Seller", and the City of Yakima, Washington and Yakima County, Washington, who, as joint owners of the Yakima Air Terminal, are herein referred to as "Buyer". WHEREAS, Buyer, via the Yakima Air Terminal Board and its predecessor, the City of Yakima, singularly, leased to Seller certain real property within the exterior boundaries of what is commonly known as the Yakima Air Terminal, located within kima County, Washington, as set out in that certain Airpor•1,jease �1i1%°' Zo N13r� �s £xr{ �d< < 11" Agreement originally dated February 8, 1982,n the lessee's interes in which has passed to Seller herein; and WHEREAS, the said lease agreement, as amended subsequently, provides a right of first refusal to purchase the leasehold building(s) in event Seller, as tenant, owns and desires to sell any or all of the same during the course of the lease; and WHEREAS, Seller, under document dated August 29, 1991, has accepted an offer to purchase the buildings of Seller located upon said leasehold within the confines of the Yakima Air Terminal, which term includes buildings and all fixtures (trade or otherwise) attached thereto as of August 29, 1991; and WHEREAS, pursuant to said right of first refusal contained in the lease between the parties, Buyer desires to buy the buildings, as herein defined, upon the terms and conditions set out hereinbelow, NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties agree as follows: 1. SALE. Subject to the terms and conditions as set forth herein, Seller does hereby agree to sell and assign to Buyer Agreement for Sale and Purchase -1- all right, title and interest in and to the above-described leasehold estate, including, without limitation, all buildings and improvements situate on the leased premises which are owned by Seller. The term "improvements" includes buildings and all fixtures (trade or otherwise) attached thereto on August 29, 1991. 2. PURCHASE PRICE. The purchase price for the property subject to this sale is $125,000.00, plus a sum equivalent to the cost to Seller to test and inspect the three (3) buried fuel tanks on the leased premises, which cost is not to exceed $3,500.00, making the total possible purchase price $128,500.00. Buyer is only willing to close this transaction upon being reasonably assured that said tanks are in good condition and not leaking. Seller warrants that the aforesaid test and/or inspection has been completed by an authorized facility, has proven to be in conformance with all applicable laws, rules and regulations of appropriate regulatory agencies, and that the tanks do not leak. A copy of the written test/inspection results will be furnished to Buyer upon execution of this Agreement. If the test results do not meet the satisfaction of Buyer, then this Agreement shall automatically terminate in all respects. After closing, Buyer will hold Seller harmless in any future litigation or claim that may arise in connection with the use or removal of the three underground tanks. 3. TITLE. Title to the leasehold estate and the building and improvements situate thereon shall be free and clear at Closing without any encumbrances, liens or claims of third parties, except for the lease herein referred to. It is understood that the sale proceeds payable hereunder may be used to satisfy monetary encumbrances against the leasehold estate and improvements, and may be paid out of closing for those purposes. 4. CLOSING. This transaction shall be closed on October 4, 1991, unless the date is extended by mutual agreement of the parties. The Closing shall occur at Fidelity Title Company, with the costs of closing to be borne in accordance with the custom then prevailing in Yakima County. Buyer and Seller agree to sign promptly, when notified to do so, all papers and documentation Agreement for Sale and Purchase -2- necessary to close this transaction and to otherwise cooperate in facilitating the Closing of the same. 5. TRANSFER TAXES. Should real estate excise tax be imposed as a result of the transfer, Seller shall pay the same when due. Buyer shall pay any sales and/or use taxes imposed as a result of the acquisition. 6. WARRANTIES OF SELLER. Seller warrants to Buyer as follows: 6.1 Title to the subject property is free and clear of all liens and encumbrances, and Seller is the owner of the same and has authority to enter into this transaction, which will not violate the terms of any loan, encumbrance, or contract to which Seller or any other person or entity is a party. 6.2 Corporate Seller has authority to enter into this transaction. 6.3 All taxes related to the leasehold estate, including property taxes and leasehold excise taxes, have been paid in full, and will be to date of closing, as will the leasehold payments to the Yakima Air Terminal. 6.4 The improvements and fixtures on the leased premises are in reasonably good condition, and Seller knows of no defects that would not be discovered upon a visual inspection of said properties. Seller, however, makes no warranty concerning the fitness for purpose of said improvements. 7. PRORATIONS. Taxes, rents and utility charges, if any, shall be prorated as of Closing. 8. POSSESSION. Buyer shall be entitled to possession of the leasehold estate and improvements at Closing. Seller shall bear all risk of loss with respect to the subject property prior to Closing. 9. ENTIRE AGREEMENT. This constitutes the entire agreement of the parties and shall not be modified except in writing. 10. PREVIOUS OFFER. Seller covenants and warrants that the previous offer, from Dolsen and Frank, is hereby terminated, in every respect, and there are no other offers or promises legally Agreement for Sale and Purchase -3- impeding intended Closing. 11. ATTORNEY FEES/VENUE. In the event any suit or action is instituted by either of the parties to enforce any of the terms and conditions hereof, the prevailing party in such suit or action shall be entitled to reasonable attorney's fees (for trial and appeal) in addition to all other taxable costs as allowed by law. 12. ACCEPTANCE. This offer shall be deemed accepted by the Buyer when signed by both the City and County authorized officials. IN WITNESS WHEREOF, the parties hereto have hereunto set their hands as of Scptcmlep °°�-- � . i , 1991. SELLER: Corporate Aircraft Services, Inc. By : Wayne G. Turner, President �• - Wayne G. Turner, Individually BUYER: City of Yakima, Washington By: BY: f� e�� c� Vi /.'c..ce_k_k�, e1c� Its: City Clerk CITY CONTRACT NO. '9/cH /lJ LP a b' Agreement for Sale and Purchase -4- Yakima County, Washington By: By: Bv: STATE OF WASHINGTON ) ) ss. County of Yakima Alex Deccio, Commissioner Graham Tollefson, loner uck Klarich,`ommissioner I certify that I know or have satisfactory evidence that Wayne Turner, individually, signed this instrument, and on oath stated that he was authorized to execute the instrument and acknowledged it as the President of Corporate Aircraft Services, Inc., to be the free and voluntary act of such party for the uses and purposes mentio d in the instrument. Dated: ls;N;°l NOTARY UBLIC in and state of Washington.c My commission expires: �`� -13 Agreement for Sale and Purchase -5- AIRPORT LEASE AGREEMENT THIS AGREEMENT, executed this g-77 day of ' <d -u..44-,7 , 1982, by and between the City of Yakima, Washington, a municipal corporation, hereinafter called the City, and Yakima Executive Aircraft, Inc., herein- after called the Lessee: W ITNESSET H: WHEREAS, the City awns and operates the Yakima Air Terminal and has ground space available for lease as provided by this agreement, and Lessee this agre NOW, ires to occupy and use sudz ground space in accordance with RE, in consideration of the mutual promises contained herein and the benefit to be derived by each party, the parties agree as fol lows : 1. Premises: ,The City does hereby lease and let unto Lessee, and Lessee •oes hereby hire and take from the City, certain ground space at the Yak' Air Tenpin -3n the City of Yakima, Yakima County, Wash- ington, as •.t ground s:t e is depicted on the drawing marked Exhibit "A", attadied -reto and .-this reference made a part hereof, together with the right o ingress • and egress frau the leased premises over and across common • .•lic ac ire ways, together with the right of access between the leased pr ses andjacent taxiway. 2. Tern: The tenancy crew by this agreement shall ccmrrence on July 1, 1981 and expire on June 300991. 1991. 3. : A. Subject to \°visions of sub paragraph B of this paragra ,t Lessee promises and agrees to pay rental to the City at "i the rate of $2, 7.00 per year for th Teased premises, which payment shall be made in lve (12) equal month installments due in advance on or before the tenth y of eadl math. •ayrrents shall be made to the City of Yakima, Ailp rt ager's Ofic-� . the Yakima Air Terminal. B. The rental rate provided by pa raph A of this paragraph shall be subject to review and nodificatio at a • ar intervals during the term of the tenancy on the second, ,th and eighth year anniversary of the commencement of the tern. A •, ision that a rental rate adjustment is necessary shall be based on the o1lowing criteria: (a) The general dzange in the cost of living -ti measured by the Seattle/Everett Metropolitan Area Consumer Price In•= — All Urban Consumers; (b) General dianges in the value of real estate having comparable use; and (c) The relationship between revenues and expenditures at the Yakima Airport. It is anticipated that the City and the Lessee will agree as to the need for, and/or rate of, any rental adjustment. In the event)of dis- agreement between the parties as to the need for, or the rate of, an adjustment, the rental rate shall be adjusted according to the average fixed base operation land rental rates at the following airports: Tri-Cities/Pasco; Spokane International; Boners Field -- Ellensburg; LEASE I/A 1 Pullman/ Moscow; Walla Walla; Richland; Wenatchee and Grant County (Moses Lake). The actual amount of adjusted rental shall be computed according to the following schedule of rates: The year two adjustment shall equal 60 percent rental rate; The year four adjustment shall equal 70 percent rental rate; The year six adjustment shall equal 80 percent rental rate; The year eight adjustment shall equal 90 pence of such average of such average of such average nt of sudZ average rental rate; and The year ten adjustment and adjustment for all years thereafter shall equal 100 p'rcent of sudz average rental rate. 4. Taxes and Liens: In addition to the rental reserved in para- graph 3 of this agreement, Lessee promises and agrees to pay, as the same become due and payable, all license fees and taxes, including but not limited to the leasehold excise tax (R.C.W. 81.29 A), required to be paid by Lessee by reason of this lease agreement for 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 encum- brance on the leased premises by reason of Lessee's occupancy thereof. 5. Utility and Janitorial Service: Lessee shall pay for elec- trical power, and shall also be responsible for paying for any other utility service, to the leased premises. Lessee shall also obtain and pay for its own janitorial service. 6. Use: Lessee promises and agrees to use the leased promises as a general aviation fixed base operation. The use of the premises for any other purpose shall be deemed a material breach of this agreement constituting grounds for its termination. 7. Improvement: A11 buildings and other improvements by Lessee to the leased premises shall conform to applicable construction codes, and Lessee shall procure all building and other permits therefore. All such improvements shall be designed with a view toward aesthetic con- siderations and shall include landscaping features; and work on any improvements' shall not commence until plans and specifications therefore have been submitted to and approved by the Yakima City Manager as to aesthetic considerations and landscaping features. 8. Ownership and Removal of Buildings: The parties agree that ownership of the buildings constructed by Lessee on the leased premises shall remain in Lessee; provided electrical and other..utility service facilities and connections shall constitute realty owned by the City and shall not be subject to removal on the expiration or termination of the tenancy. Subject to the rights and options of the City as provided in para- graph 9 of this agreement, upon the expiration or termination of the tenancy, Lessee may remove its buildings frau the premises, with such removal to be accomplished within thirty (30) days frau such expiration or termination. Lessee, in its removal of the buildings, shall use care LEASE I/A 2 so as to minimize damage to the premises, including the electrical and utility services thereto and the taxi ramp constructed thereon. In the event Lessee fails to remove its buildings frau the premises within thirty (30) days frau such expiration or termination, the build- ings shall th' n became part of the real estate and title thereto shall vest in the City. 9. Ci s Option to Purdzase: During the tenancy or anytime thereafter Y `_ore the removal of the building(s) from the leased pre- mises, as contemplated by paragraph 8 of this agreement, Lessee shall notify the City in writing in the event Lessee intends to sell any such building (s) tv a third party, which notice shall contain a copy of a contract for ;uch sale binding the parties thereto except for the right of the City 'exercise this option. For a period of fifteen days after its receipt if such notice, the City shall have the first right and option to boy the building(s) on the same terms and conditions as the intended sale. Further, the City shall have the absolute right and option to purdhase any or all of Lessee's buildings on the leased premises on the termination 'r expiration of the tenancy, regardless of whether ter- minated by ei:_her party giving notice to the other at the end of the ten year tern, or whether the tenancy expires at the conclusion of the six year renewed term, all as contemplated by paragraph 16 of this agree- ment. This option may be exercised by the City after such notice of termination is given by either party, but written notice of the City's intent to exercise this option mist be given no later than sixty (60) days prior to the termination or expiration date, whether. at the end of the ten year or sixteen year tern. Further, in the event of termination of this agreement and for- feiture of rental as provided by paragraph 14 of this agreement, the City shall have the absolute right and option to purdhase any or all of Lessee's buildings on the leased premises upon the City's giving written notice to Lessee of the City's intent to exercise this option, which notice must be given simultaneously with the notice of termination and forfeiture. In the event the City exercises any of its optional rights pursuant to this paragraph, it is contemplated that the parties shall negotiate in an effort to agree on a mutually satisfactory purdhase price. How- ever, in the event the parties cannot agree on a purdhase price, the price shall be determined by an appraisal performed by an appraiser who shall be chosen by mutual agreement of the parties, and the cost of such an independent appraisal shall be borne equally by the parties. 10. Subletting -- Assignment: Lessee shall not assign or other- wise transfer this lease agreement nor sublet the leased premises or any part thereof without first obtaining written consent of the City; and such consent may be given or withheld at the discretion of the City, but such consent shall not be unreasonably withheld. LEASE I/A 3 11. Indemnity and Waiver: Lessee shall defend the City against, and indemnify and hold the City harmless frau, every claim of any nature whatsoever made against the City based on or arising frau the occupancy of the leased premises by Lessee or frau any act or omission•,of Lessee, its employees, agents or any other person acting on behalf of Lessee or under its direction. Lessee shall file with the Yakima City Clerk a certificate of insurance, or other proof of. insurance acceptable to the City, evidencing an insurance policy with the City of Yakima named as an additional insured party providing comprehensive liability insurance coverage in amounts of not less than $250,000 for' one person and $500,000 for any one accident involving injury to more than one person, with property damage insurance in the minimum amount of $250,000 for any one accident covering Lessee's occupancy of and activities pertaining to the leased premises. 12. Regulations: Lessee agrees to comply with all laws, ord- inances, rules and regulations applicable to the use and operation of Yakima Air Terminal prcperty, facilities and operations as those laws, ordinances, rules and regulations now exist or may hereafter become effective so as to apply to the occupancy and use by Lessee of the leased premises and the conducting of Lessee's operations thereon or therefrom. 13. Miscellaneous Provisions: (a) The parties agree that the City, through its City Manager, Airport Manager, or other person authorized by either of'them, may enter upon the leased premises at any reasonable time to make such inspections as the City may dean expedient to the proper enforcement of any tern,_ provision or condition of this lease agreement; provided, no such entry and inspection by the City is required by this agreement, and the fail- ure of the City to enter and make inspection shall not alter the rela- tionship of the parties -.end their respective rights and duties provided by this agreement. (b) The City may :.irther develop or improve Yakima Air Terminal property and facilities it deems desirable, regardless of the desire or views of Lessee in o_.:nection with any such development or improve- ment, and without inter _rence ur hindrance on the part of Lessee and without liability to Les:..e. (c) The City reser ,es the right, but shall not be obligated to Lessee, to maintain and eep in repair the landing area of the airport and all publicly -owned 'aciliti:s of the airport, together with the right to direct and con _col all activities of Lessee in that regard. (d) The City reser.es the right to take any action deemed nec- essary or desirable by the City to protect the aerial'approaches of the airport against obstruction, together with the right to prevent Lessee frau erecting, or permitting to be erected, any building or other struc- ture on the Yakima Air Terminal which, in the opinion of the City Air- port Manager, would limit the usefulness of the Yakima Air Terminal or constitute a hazard to aircraft. LEASE I/A 4 (e) During the time of war or national emergency, the City 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 agreement shall be suspended insofar as they are inconsistent with the provisions of the lease agree- ment with the United States Government. (f) This lease agreement shall be subordinate to the provisions of any existing or future agreement between the City and the United States of America relative to the operation or maintenance of the Yakima Air Terminal, the execution of whidl has been or may be required as a con- dition precedent to the expenditure of federal funds for the development of the Yakima Air Terminal. 14. Termination and Forfeiture: The failure by Lessee to pay rental 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 agreement, shall constitute grounds for termination of this agree- ment and the tenancy hereby created and for forfeiture of all rental paid by Lessee to the time of termination. This agreement and tenancy shall terminate and rental paid shall be forfeited for cause as spec- ified above on written notice by the City to Lessee stating the amount of rental in default or stating the breath by Lessee on which the ter- mination is based, and that Lessee shall pay the rental in default or otherwise comply with this agreement in the manner specified in the notice within thirty (30) days frau Lessee's receipt of such notice, otherwise this agreement and tenancy shall be terminated and rental forfeited. Such notice shall be given in writing and personally served on Lessee in the manner provided by law or service of summons and can- plaint, or mailed by certified retail with return receipt requested ad- dressed to Lessee at its address stated below Lessee's signature to this agreement. In the event of such termination and forfeiture, the City may exercise its right and option to buy any or all of Lessee's buildings on the leased premises, as provided by paragraph 9 of this agreement. 15. Non-Discrimination Cla::se: In the event Lescce 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 nut unjustly discriminatory basis to all users thereof, and to Charge fair, reasonable, and not unjustly dis- criminatory prices for each unit of service, provided, that Lessee may make reasonable and not discriminatory 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, on the grounds, of race, color, or national origin, discriminate or permit discrimination against any person or group of persons in any manner prohibited by federal law and regulations. Lessee's breach of any premise or agreement containcci in this paragraph shall constitute grounds for the termination of this agreement, and in addition thereto, the City shall have the right to take such other remedial action as the United States Government may direct. LEASE I/A 5 16. Automatic Renewal: This lease, and the tenancy hereby creat- ed, reated, shall be automatically renewed for one six (6) year term following its ten (10) year expiration date unless either party gives written notice of termination to the other party no less than 90 days prior to the lease expiration date. During that renewed term, the provisions, terms and conditions of this agreement shall apply, except that the rental rate shall be subject to adjustment at that time to reflect 100 percent of the average rental, as computed by the formula set out in sub paragraph 3B of this agreement; and rental rates will continue to be subject to review during the renewed term at two (2) year intervals on the twelfth and fourteenth anniversary of the cannencement of the ori- ginal term. 17. Insolvency. In the event Lessee is declared bankrupt by a court of competent jurisdiction or 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 judgment against Lessee, then in that event the City may immediately or at any tine 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 agreement and the tenancy hereby created shall absolutely terminate, but without prejudice to any rem- edies which might otherwise be available to the City for collection of past due rent for any breach by Lessee of any covenants contained in this agreement. 18. Removal Financing: In the event of any termination of this lease by the City of Yakima by reason of the implementation of the expansion program under the Yakima Municipal Airport Master Plan and in the further event that federal funding provides financing for the re- moval of improvements and facilities, it is agreed and understood that the City of Yakima shall take all steps reasonably necessary to obtain financial assistance for the removal of Lessee's building to a naw location within the boundary of the Yakima Air Terminal. Executed the day and year first above written. ATTEST: City Cler� LEASE I/A CITY OF YAKIMA, WASHINGTON a municipal corporation, By c City Manager LESSOR LESSE Address of Lessee: 6 STATE OF ? .SHECTON ) ss. COUNTY 0 F YAKIMA ) On this day personally appeared before me Richard A. Zais, Jr., and Iris Litzenberger, to me known to be the City,Manager and, City Clerk, respectively, of the City of Yakima, the corporation that executed the within foregoing Tease Agreement, and acknowledged the same instrument to be the free and voluntary act and deed.of said corporation, for the uses and purposes therein mentioned, and on oath stated that they are authorized to execute this Lease Agreement and that the seal placed thereon is the corporate seal of said corporation. �/ GIVEN under by hand and official seal this er,7/ day of ' , 1982. C72-L._--?"ee;_ Notary PUbli5in and for the State of Wa5hington, residing at Yakima. LEASE I/A 7 TOTAL GROUND SPACE - 86)900 5Q FT inst,ruie f-.!ocx b: d g E.eu, II:3 - -;%77;', / • , • •-• ' ///!.▪ ' • ," • ; • .//'• • - C , N \ r .,;,• !- 1 - 1 I -5 .•,.. ::::), I ; i ' ..2 il. `-' • I ...." • `,.... / ^r.-; ..^ • • • ... ...... s !../. ',... 11 ( 1 ... '°..: :e.". ' \ :21. `, ..•• „? .: i.,,,Ci ' .-^ ---IC.:•L',1.37Z.1,—.. ' ' -... _.. \ 7-- • • Pg• kn.; • ;-.1•3 •Y --150S •' - _ ---.,,'.. -.EL11)1,4) •-• — - .r 10.1 S I • fEJ:47-i7,...),1 f.! • NC Cle Are A p • ' I ELEV 1050.3 • FOure • Tistevc-J •••••...„ 1e, 2• ,56,5 G.1.• "r -i 1 AGREEMENT TO DIVIDE COSTS OF PURCHASING LEASEHOLD IMPROVEMENTS The parties to this Agreement are the City of Yakima, Washington and Yakima County, Washington, who are joint owners of the Yakima Air Terminal. WHEREAS, the City of Yakima and Yakima County are jointly entering into an agreement for sale and purchase of leasehold improvements with Corporate Aircraft Services, Inc., a Washington corporation, and Wayne G. Turner, individually; and WHEREAS, the City of Yakima and the County of Yakima each wish to pay one-half (50%) of the costs of purchasing said leasehold improvements; and WHEREAS, the subject of the Agreement for sale and pur- chase of leasehold improvements is that certain Airport Lease Agreement originally dated February 8, 1982, between the City of Yakima, as Lessor, and Yakima Executive Aircraft, Inc., as Lessee; and WHEREAS, on August 15, 1984, the then Lessor and Lessee under the Lease entered into an Amendment to Airport Lease Agreement for purposes of identification, copies of the Lease and Amendment are attached hereto as Exhibits A-1 and A-2. NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties agree as follows: The City of Yakima herewith agrees to pay one-half of the cost of purchasing the above referenced leasehold and improve- ments up to a cost of Sixty -Four Thousand, Two Hundred and Fifty Dollars ($64,250). Yakima County hereby agrees to pay one-half of the cost of the above -referenced purchase of leasehold improvements up (Agr/Terminal) Page 1 to a total cost of Sixty -Four Thousand, Two Hundred and Fifty Dollars ($64,250). CITY OF YAKIMA, WASHINGTON By : Richard A. Zais, Jr. City Manager By: LI/1-4A.y^ Vj,cu.u_k -- City Clerk YAKIMA COUNTY, WASHINGTON By: Arex Deccio Commissioner By: By: (Agr/Terminal) Page 2 Graham To l l of son Commissioner uc 'laric Commissioner K, c shall be made on or before the tenth City of Yakima, B. The shall be the tern AIRPORT LEASE PGREEMENT THIS AGREEMENT, executed this 2? day of 1982, by and between the City of Yakima, Washington, a municipal corporation, hereinafter called the City, and Yakima Executive Aircraft, Inc., herein- after called the Lessee: W ITNESSET H: WHEREAS, the City awns and operates the Yakima Air Terminal and has ground space available for lease as provided by this agreement, and Lessee .-.fires to occupy and use such ground space in accordance with this agre NOW, T RE, in consideration of the mutual promises contained herein and the benefit to be derived by each party, the parties agree as follows: 1. Premises: ,The City does hereby lease and let unto Lessee, and Lessee .oes hereby hire and take frau the City, certain ground space at the YakAir Terpin. An the City of Yakima, Yakima County, Wash- ington, as at ground s:t e is depicted on the drawing marked Exhibit "A", attached -reto and this reference made a part hereof, together with the right o ingress . and egress from the leases premises over and across common ...lic ac - — ways, together with the right of access between the leased preririses and 2. Term: The tenancy crea jacent taxiway. by this agreement shall commence July 1, 1981 and expire on June 300991. 3. dental: A. Subject to't. this paragra the rate of $2, in ovisions of sub to pay rental Lessee promises and agrees 7.00 per year for th lve (12) equal month \y of each math. Airport anager's Ofic rental rate provided by subject to review and rnodificatio of the tenancy on the second, paragraph B to the City on of at eased premises, which payment installments due in advance ayments shall be made to the the Yakima Air Terminal. raph A of this paragraph ar intervals during th and eighth year ision that a rental ollowing criteria: Treasured by the — All Urban anniversary of the camrrencerrent of the term. A rate adjustment is necessary shall be based on the (a) The general change in the cost of living Seattle/Everett Metropolitan Area Consumer Price In Consumers; (b) General changes in the value of real estate having comparable use; and (c) The relationship between revenues and expenditures at the Yakima Airport. It is anticipated that the City and the Lessee will agree as to the need for, and/or rate of, any rental adjustment. In the event}of dis- agreement between the parties as to the need for, or the rate -of, an adjustment, the rental rate shall be adjusted according to the average fixed base operation land rental rates at the following airports: Tri-Cities/Pasco; Spokane International; Bowers Field -- Ellensburg; LEASE I/A 1 Pullman/ Moscow; Walla Walla; Richland; Wenatchee and Grant County (Moses Lake). The actual amount of adjusted rental shall be computed according to the following schedule of rates: The year two adjustment shall equal 60 percent of such average rental rate; The year four adjustment shall equal 70 percent of such average rental rate; The year six adjustment shall equal 80 percent of such average rental rate; The year eight adjustment shall equal 90 percent of such average rental rate; and The year ten adjustment and adjustment for all years thereafter shall equal 100 percent of such average rental rate. 4. Taxes and Liens: In addition to the rental reserved in para- graph 3 of this agreement, Lessee promises and agrees to pay, as the same became due and payable, all license fees and taxes, including but not limited to the leasehold excise tax (R.C.W. 81.29 A), required to be paid by Lessee by reason of this lease agreement for 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 encum- brance on the leased premises by reason of Lessee's occupancy thereof. 5. Utility and Janitorial Service: Lessee shall pay for elec- trical power, and shall also be responsible for paying for any other utility service, to the leased premises. Lessee shall also obtain and pay for its own janitorial service. 6. Use: Lessee promises and agrees to use the leased premises as a general aviation fixed base operation. The use of the premises for any other purpose shall be deemed a material breach of this agreement constituting grounds for its termination. 7. Improvement: All buildings and other improvements by Lessee to the leased premises shall conform to applicable construction codes, and Lessee shall procure all building and other permits therefore. All such improvements shall be designed with a view toward aesthetic con- siderations and shall include landscaping features; and work on any improverrents'shall not canrrence until plans and specifications therefore have been submitted to and approved by the Yakima City Manager as to aesthetic considerations and landscaping features. 8. Ownership and Removal of Buildings: The parties agree that ownership of the buildings constructed by Lessee on the leased premises shall remain in Lessee; provided electrical and other utility service facilities and connections shall constitute realty awned by the City and shall not be subject to removal on the expiration or termination of the tenancy. Subject to the rights and options of the City as provided in para- graph 9 of this agreement, upon the expiration or termination of the tenancy, Lessee may remove its buildings frau the premises, with such removal to be accomplished within thirty (30) days frau such expiration or termination. Lessee, in its removal of the buildings, shall use care LEASE I/A 2 so as to minimize damage to the premises, including the electrical and utility services thereto and the taxi ramp constructed thereon. In the event Lessee fails to remove its buildings from the premises within thirty (30) days from such expiration or termination, the build- ings shall th,In become part of the real estate and title thereto shall vest in the City. 9. Ci ti's Option to Purchase: During the tenancy or anytime thereafter h `_ore the removal of the building(s) from the leased pre- mises, as contemplated by paragraph 8 of this agreement, Lessee shall notify the City in writing in the event Lessee intends to sell any such building(s) to a third party, which notice shall contain a copy of a contract for .,uch sale binding the parties thereto except for the right of the City ) exercise this option. For a period of fifteen days after its receipt if such notice, the City shall have the first right and option to boy the building(s) on the sane terms and conditions as the intended sale. Further, the City shall have the absolute right and option to purdlase any or all of Lessee's buildings on the leased premises on the termination 'r expiration of the tenancy, regardless of whether ter- minated by ei:.her party giving notice to the other at the end of the ten year tern, or whether the tenancy expires at the conclusion of the six year renewed term, all as contemplated by paragraph 16 of this agree- ment. This option may be exercised by the City after sudz notice of termination is given by either party, but written notice of the City's intent to exercise this option must be given no later than sixty (60) days prior to the termination or expiration date, whether. at the end of the ten year or sixteen year term. Further, in the event of termination of this agreement and for- feiture of rental as provided by paragraph 14 of this agreement, the City shall have the absolute right and option to purdiase any or all of Lessee's buildings on the leased premises upon the City's giving written notice to Lessee of the City's intent to exercise this option, which notice must be given simultaneously with the notice of termination and forfeiture. In the event the City exercises any of its optional rights pursuant to this paragraph, it is contemplated that the parties shall negotiate in an effort to agree on a mutually satisfactory purchase price. How- ever, in the event the parties cannot agree on a purchase price, the price shall be determined by an appraisal performed by an appraiser who shall be chosen by mutual agreement of the parties, and the cost of such an independent appraisal shall be borne equally by the parties. 10. Subletting -- Assignment: Lessee shall not assign or other- wise transfer this lease agreement nor sublet the leased premises or any part thereof without first obtaining written consent of the City; and such consent may be given or withheld at the discretion of the City, but such consent shall not be unreasonably withheld. LEASE I/A 3 11. Indemnity and Waiver: Lessee shall defend the City against, and indemnify and hold the City harmless from, every claim of any nature whatsoever made against the City based on or arising from the occupancy of the leased premises by Lessee or from any act or emission .of Lessee, its employees, agents or any other person acting on behalf of Lessee or under its direction. Lessee shall file with the Yakima _City Clerk a certificate of insurance, or other proof of. insurance.acceptable to the City, evidencing an insurance policy with the City of Yakima named as an additional insured party providing comprehensive liability- insurance coverage in amounts of not less than $250,000. for -one person and $500,000 for any one accident involving injury to more than one person, with property damage insurance in the minimum amount of $250,000 for any one accident covering Lessee's occupancy of and activities pertaining to the leased premises. 12. Regulations: Lessee agree✓ to comply with all laws, ord- inances, rules and regulations applicable to the use and operation of Yakima Air Terminal property, facilities and operations as those laws, ordinances, rules and regulations now exist or may hereafter become effective so as to apply to the occupancy and use by Lessee of the leased premises and the conducting of Lessee's operations thereon or therefrom. 13. Miscellaneous Provisions: (a) The parties agree'that the City, through its City Manager, Airport Manager, or other person authorized by either of'them, may enter upon the leased premises at any reasonable time to make sudz inspections as the City may deem exp2dient to the proper enforcement of any tern,_ provision or condition of this lease agreement; provided, no succi entry and inspection by the City is rewired by this agreement, and the fail- ure of the City to enter and make inspection shall not alter the rela- tionship of the parties <.nd their respective rights and duties provided by this agreement. (b) The City may :.irther develop or improve Yakima Air Terminal property and facilities ,3 it doom desirable, regardless of the desire or views of Lessee in cr_.nection with any such development or improve- ment, and without inter _rence or hindrance on the part of Lessee and without liab}lity to Les: -2e. (c) The City reser es the right, but shall not be obligated to Lessee, to maintain and yep in repair the landing area of the airport and all publicly -aimed -acilitie s of the airport, together with the right to direct and con _rol all activities of Lessee in that regard. (d) The City reser es the right to take any action deemed nec- essary or desirable by the City to protect the aerial'apprdaches of the airport against obstruction, together with the right to prevent Lessee frau erecting, or permitting to 1e erected, any building or other struc- ture on the Yakima Air Terminal which, in the opinion of the City Air- port Manager, would limit the usefulness of the Yakima Air Terminal or constitute a hazard to aircraft. LEASE I/A 4 (e) During the time of war or national emergency, the City 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 agreement shall be suspended insofar as they are inconsistent with the provisions of the lease agree- ment with the United States Government. (f) This lease agreement shall be subordinate to the provisions of any existing or future agreement between the City and the United States of America relative to the operation or maintenance of the Yakima Air Terminal, the execution of which has been or may be required as a con- dition precedent to the expenditure of federal funds for the development of the Yakima Air Terminal. 14. Termination and Forfeiture: The failure by Lessee to pay rental in the amounts and at the times specified herein, or the failure by Lessee to otherwise canply with any tern, provision or condition of this agreement, shall constitute grounds for termination of this agree- ment and the tenancy hereby created and for forfeiture of all rental paid by Lessee to the time of termination. This agreement and tenancy shall terminate and rental pail shall be forfeited for cause as spec- ified above on written notice by the City to Lessee stating the amount of rental in default or stating the breach by Lessee on which the ter- mination is based, and that Lessee shall pay the rental in default or otherwise canply with this agreement in the manner specified in the notice within thirty (30) days from Lessee's receipt of such notice, otherwise this agreement and tenancy shall be terminated and rental forfeited. Such notice shall be given in writing and personally served on Lessee in the manner provided by law or service of sumrrons and can - plaint, or mailed by certified mail with return receipt requested ad- dressed to Lessee at its address stated below Lessee's signature to this agreement. In the event of such termination and forfeiture, the City may exercise its right and option to buy any or all of Lessee's buildings on the leased premises, as provided by paragraph 9 of this agreement. 15. Non -Discrimination Cla se: 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 nut unjustly discriminatory basis to all users thereof, and to charge fair, reasonable, and not unjustly dis- criminatory prices for each unit: of service, provided, that Lessee may make reasonable and not discriminatory 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, on the grounds, of race, color, or national origin, discriminate or permit discrimination against any person or group of persons in any manner prohibited by federal law and regulations. Lessee's breach of any promise or agreerrent contained: in this paragraph shall constitute grounds for the termination of this agreement, and in addition thereto, the City shall have the right td: take such other remedial action as the United States Government may dir:ct. LEASE I/A 5 16. Automatic Renewal: This lease, and the tenancy hereby creat ed, shall be automatically renewed for one six (6) year term following its ten (10) year expiration date unless either party gives written notice of termination to the other party no less than 90 days prior to the lease expiration date. During that renewed term, the provisions, terms and conditions of this agreement shall apply, except that the rental rate shall be subject to adjustment at that time to reflect 100 percent of the average rental, as computed by the formula set out in sub paragraph 3B of this agreement; and rental rates will continue to be subject to review during the renewed term at two (2) year intervals on the twelfth and fourteenth anniversary of the commencement of the ori- ginal term. 17. Insolvency. In the event Lessee is declared bankrupt by a court of competent jurisdiction or 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 judgment against Lessee, then in that event the City 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 agreement and the tenancy hereby created shall absolutely terminate, but without prejudice to any rem- edies which might otherwise to available to the City for collection of past due rent for any breach by Lessee of any covenants contained in this agreement. 18. Removal Financing: In the event of any termination of this lease by the City of Yakima by reason of the implementation of the expansion program under the Yakima Municipal Airport Master Plan and in the further event that federal funding provides financing for the re- mroval of improvements and facilities, it is agreed and understood that the City of Yakima shall take all steps reasonably necessary to obtain financial assistance for the removal of Lessee's building to a new location within the boundary of the Yakima Air Terminal. Executed the day and year first above written. AnutST: ,, City Cie") LEASE I/A CITY OF YAKIMA, WASHINGTON a municipal corporation, By CityManager Address of Lessee: 6 STATE OF WASHINGTON ) ss. COUNTY 0 F YAKIMA ) On this day personally appeared before me Richard A. Zais, Jr., and Iris Litzenberger, to me known to be the City Manager and'City Clerk, respectively, of the City of Yakima, the corporation that executed the within foregoing Lease Agreement, and acknowledged the sane instrument to be the free and voluntary act and deed of said corporation, for the uses and purposes therein mentioned, and on oath stated that they are authorized to execute this Lease Agreement and that the seal placed thereon is the corporate seal of said corporation. GIVEN under by hand and official seal this Xieday of ' clf: 1982. Notary Pub1i5in and for the State of Wallington, residing at Yakima. LEASE I/A 7 TOTAL GROUND SPACE 86,900 SO FT 1 "•::"..,,....„(2,, I ' : -• E,e,, ii:a i ! I • \ - • .;--"E'N ? I -..- I I .\'<:.,.. j u • , ,., , • - "--•;-.7.---_-:-•,--„, f , I .-- - \ .1 -. it-- i.• ) - --- I (" ' i - , . 0, --...„.. --...., - .t....10 / --"' ...7 / .. 1 r __ -- :---,---. . ...- - • -... _ __wc,4,07z........,1_1 ..;-..---_1_,....,__.„.r 41:::=?.-___,_. 7 . - - 7 4...1:-(‘' •- \ '''''''' I ,1-..,,.._ r.,9 N. •..,.,,,>,.,:i': l - v----f-=bvt: •-. - , .,- ,T.-,..4-35 fire./1—j-l'i -----.51.bi..6‘ \I' .). • \...,:,-,1 ___.- '! ' :,-;- • ,,-,;./ ,'-'-1 ,.._, ___.,____._____ • ,-- - ..-_-- .._.• /...." „. i i . • . , - ' L': ' '...:. f 71) '''': ..'-\-.-",-%.'•:n. 1-. I ,Z : I • j ..-----;- c..q., 1 .....1,057, .. F.7177/1 .../___-----} ----- . ‘..., E• I.w?•.:, '.\.--. •.,.•.- • .. i=r.-J.1x.1‘c-.;.---A--.„.....-:' ' :”'I - • ' . ,- -'.—: :•: :- ..ti. fP :-, __1\\A ' 1 CI e i ... .- c Are ' .., .... • „,..••• "" - . li.,:-:;' \ ‘ i • (-: II i , .,".-. • ..... ...ri -`, Ap Fu!ure:' dir E iEV 1 050 3 ...,I ---• V•-..4 \ ;5 -'; .:. I- I , : ' Ri i TI•res.•:-.4.! ,_:cr!,s .,- -,.... , :75) ! I N.. I I D 1 ft ! Co , \ --, f 0! - • 4 AMENDMENT TO AIRPORT LEASE AGREEMENT THIS AMENDMENT, executed this 15th day of August, 1984, by and between the YAKIMA AIR TERMINAL BOARD, an agency of the City and County of Yakima, Washington, hereinafter called the BOARD, and Wayne G. Turner, an individual, and Corporate Aircraft Services, Inc. a Washington corporation, W ITNESSET H: WHEREAS, the City of Yakima and Yakima Executive Aircraft, Inc., entered into a lease agreement dated July 1, 1981, and WHEREAS, the City of Yakima assigned said lease to the Yakima Air Terminal Board on July 1, 1982, and WHEREAS, Yakima Executive Aircraft and its successor, the Yakima Indian Nation, assigned, with the approval of the BOARD, the lease to WAYNE G. TURNER, a single man, and CORPORATE AIRCRAFT SERVICES, INC., a Washington corporation, hereinafter called the LESSEE, on August 15, 1984, and WHEREAS, the BOARD has determined it to be in the best interests of the Airport to modify some of the terms of the lease, and WHEREAS, LESSOR has agreed to said modifications, NOW, THEREFORE, in consideration of the mutual promises contained herein and the benefit to be derived by each party, the parties agree that the following various sections of the forementioned lease Agreement are hereby amended to read as follows: 1. PREMISES: The Board does hereby lease and let unto Lessee, and Lessee does hereby hire and take from the Board, certain ground space at the Yakima Air Terminal in the City of Yakima, Yakima County, Washington, as that ground space is depicted on the drawings marked Exhibits "A", " and ", attached hereto and by this reference made a part hereof, to ether with the right of ingress to and egress from the leased premises over and across -/ common common public access ways, together with the right of access between the leased premises and adjacent taxiway. gam 2. TERM: The tenancy created by this Agreement commenced on � July 1, 1981, and shall expire on June 30, 1993. DA 3. RENTAL: ,t`( ;S'k A. Subject to the provisions of sub -paragraph B of this section, L- see promises and agrees to pay rental to the Board at the rate of $2,.: .00 per year for the ground leased as shown in Exhibit X3-9 —_ /4 - / - e-45-7 5/--)9-90) (q �3) �, - `7/ `- ' "A", which payment shall be made in twelve (12) equal monthly installments due in advance on or before the tenth day of each month. Payments shall be made to the Yakima Air Terminal, Airport Manager's Office, 2300 W. Washington Avenue, Yakima, Washington 98903. Any rental payment past due shall accrue a delinquency charge of eighteen percent (18%) per annum. B. The rental rate provided by sub -paragraph A of this section shall be subject to review and modification at two year intervals during the term of the tenancy on the second, fourth, sixth, eighth and tenth year anniversary of the commencement of the term. A decision that a rental rate adjustment is necessary shall be based on the following criteria: (1) The general change in the cost of living as measured by the Seattle/Everett Metropolitan Area Consumer Price Index - All Urban Consumers; (2) General changes in the value of real estate having comparable use; and (3) The relationship between revenues and expenditures at the Yakima Air Terminal. It is anticipated that the Board and the Lessee will agree as to the need for, and/or rate of, any rental adjustment. In the event of disagreement between the parties as to the need for, or the rate of, an adjustment, the rental rate shall be adjusted according to the average fixed base operation land rental rates at the following airports: Tri-Cities/Pasco; Spokane International° Bowers Field -- Ellensburg; Pullman/Moscow; Walla Walla; Richland; Wenatchee and Grant County (Moses Lake). The actual amount of adjusted rental shall be computed according to the following schedule of rates: The year two adjustment shall equal 60 percent of such average rental rate; The year four adjustment shall equal 70 percent of such average rental rate; The year six adjustment shall equal 80 percent of such average rental rate; The year eight adjustment shall equal 90 percent of such average rental rate; and The year ten adjustment and adjustment for all years thereafter shall equal 100 percent of such average rental rate. C. As partial consideration for the option to purchase granted by Lessee at Section 4, below, rental for the ten tiedown spaces shown in Exhibits " and " " shall be determined as follows: 1. Monthly rental for the period August 15, 1984 through August 14, 1985, shall be included in the rental sum specified at Section 3A above. -2- 2. Monthly rental for the period August 15, 1985 through August 14, 1986, shall be $100 per month to be paid by Lessee to Lessor monthly in advance, in addition to the sums provided for at Section 3A and B. /4 3. Monthly rental for the remainder of the lease shall be ten times the monthly rate established by the Board for a tie down space available to any month-to-month occupant. D. Should the Board exercise its option to purchase Lessee's building (Exhibit A), upon the favorable terms set out at Section 4 below, and in further consideration of said option to purchase, rental therefore shall, for the first five years after exercise of option, be the fair rental value thereof, but in no event to exceed seventy-five percent (75%) of the monthly loan cost (principal and interest) to Turner on the SeaFirst loan immediately prior to the date of exercise of the option, on a building lease to be co -extensive with the expanded term of the land lease. After the first five years beyond the date of exercise of the option, and every second year thereafter, the lease payment on the building and improvements shall be at its full market value, but not greater than any increase in the Consumer Price Index for the Seattle All Urban Index with the base period equal to the date the purchase option was exercised, whichever is lower. Rental pay- ments shall be in advance, commencing the first calendar day of the month following exercise of the option. 4. BOARD'S OPTION TO PURCHASE: A. BOARD may purchase the building depicted in Exhibit "A" and all improvements from LESSEE at any time during the period August 15, 1984, through August 14, 1986, at a cost to be determined as follows: 1. $120,000, plus 2. depreciated value of improvements placed or affixed thereto by Turner subsequent to his acquisition of the building, other than trade fixtures, plus 3. a sum equal to the amount of interest paid on Turner's bank loan to purchase the building (loan #t1S"),g02.3.0001$ ) at SeaFirst Bank from date of loan to date of BOARD purchase. B. During the tenancy or anytime thereafter before the removal of the building(s) from the leased premises, as contemplated by this Agreement, LESSEE shall notify the BOARD in writing in the event LESSEE intends to sell any such building(s) to a third party, which notice shall contain a copy of a contract for such sale binding the parties thereto except for the right of the BOARD to exercise this option. For a period of thirty (30) days after its receipt of such notice, the BOARD shall have the first right and option to buy the building(s) on the same terms and conditions as the intended sale. Further, the BOARD shall have the absolute right and option to purchase any or all of LESSEE's buildings on the leased premises on the termination or expiration of the tenancy, regard- less of whether terminated by either party giving notice to the other at the end of the leasehold term, or whether the tenancy expires at the conclusion of any renewal term, all as contemplated by elsewhere in this Agreement. This option may be exercised by the BOARD after such notice of termination is given by either party, but written notice of the BOARD's intent to exercise this option must be given no later than sixty (60) days prior to the termination or expiration date, whether at the end of the primary term or any renewal term. Further, in the event of termination of this Agreement and forfeiture of rental as provided by paragraph 14 of the primary lease Agreement, the BOARD shall have the absolute right and option to purchase any or all of LESSEE's buildings on the leased premises upon the BOARD's giving written notice to LESSEE of the BOARD's intent to exercise this option, which notice must be given simultaneously with the notice of termination and forfeiture. In the event the BOARD exercises any of its option rights pursuant to this Section, it is contemplated that the parties shall negotiate in an effort to agree on a mutually satisfactory purchase price (where computation is not elsewhere provided for). However, in the event the parties cannot agree on a purchase price, the price shall be determined by an appraisal performed by an appraiser who shall be chosen by mutual Agreement of the parties, and the cost of such an independent appraisal shall be borne equally by the parties. If the parties cannot agree upon one appraiser each shall appoint an appraiser, those two shall appoint a third and the decision of any two shall be binding upon both. Each party shall share equally the cost of the third appraiser. 5. 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. 6. Except as herein modified, the lease agreement of July 1, 1981, is confirmed and ratified in all respects, binding upon the parties hereto, their successors, heirs and assigns. Time is of the essence of this entire Agreement. Executed as of the day and year first above written. ATTEST Secretary STATE OF WASHINGTON ) ss County of Yakima YAKIMA AIR TERMINAp BOARD By: Chairman On this day personally appeared before me William F. Almon and Don Heinen, to me known to be the Chairman and Secretary respectively of the Yakima Air Terminal Board, the entity that acknowledged the same instrument to be the free and voluntary act and deed of said BOARD, for the uses and purposes therein mentioned, and on oath stated that they are authorized to execute this Lease Amendment on behalf of said BOARD. Given under my hand and official seal this 15th day of August, 1984. NOTA PUBLIC in( for the State of Washington, residing at Yakima. WAYNE G. TURNER, individual Jay., 411 Address: Z- 130G W Pette sr c✓ a Xf o Phone: 5c..),=,2 4 - $-( 5 STATE OF WASHINGTON ) ss County of Yakima On this day personally appeared before me Wayne G. Turner to me known to be the individual that executed the within and foregoing Lease Amendment, and acknowledged the same instrument to be his free and voluntary act and deed for the uses and purposes therein mentioned. Given under my hand and official seal this 13TIday of NOUEyvt$i - 1984. STATE OF WASHINGTON ) ss County of Yakima ) PUBLIC In and for the State hington, residing at -Y -Ta. SIEt_R 4 . CORPORATE AIRCRAFT SERVICES, INC. Title: Gi o y t_ On this day personally appeared before me .v Ay Nc to me known to be the P12.t i ttUT of Corporate Aircraft Services, Inc., the entity that executed the within and foregoing Lease Amendment, and acknowledged the same instrument to be the free and voluntary act and deed of said Corporation, for the uses and purposes therein mentioned, and on oath stated that he is authorized to execute this Lease Amendment on behalf of said. Corporation. Given under my hand and official seal this \a"' day of ppi,wti , 1984. NI • R PUBLIC 1"n and fir the State of Washington, residing at Ydkiwd. St..AN. EXHIBIT 'A" 86 900 SQ FT c. Y ) C 'TY WELL. YAKIMA AIR TERMINAL 2300 West Washington Ave. • Yakima, Washington 98903 • [509] 575-6150 September 26, 1991 Yakima City Council Members Yakima City Hall 129 North Second Street Yakima, Washington 98901 Yakima County Commissioners Yakima County Courthouse 128 North Second Street Yakima, Washington 98901 Dear Council Members and County Commissioners: The Yakima Air Terminal Board appreciates the consideration of the Yakima City Council Members and the Yakima County Commissioners for the joint purchase of the Corporate Aircraft facility. The facility is located at 2008 West Washington Avenue, and is presently owned by Mr. Wayne G. Turner. The purchase is subject to the same terms and conditions as specified in the purchase agreement between Turner and Frank/Dolson, dated August 29, 1991. The facility includes a 10,000 square foot metal hangar building, with an attached two story office -reception area consisting of approximately 2,760 square feet. The Board sees the purchase of this facility as a necessary step toward the continued economic development of the Yakima Air Terminal. Owning this facility will be beneficial to the Airport's ability to effectively plan for the future of the Airport, including terminal area improvements, air freight facility development, and general land use planning. Additionally, owning the facility will give the Board increased control of the types of businesses locating in the terminal area, ensuring compatibility with surrounding businesses and activities. At the proposed purchase price of $128,500.00, the Airport Board estimates a return on investment within a five (5) year time frame. The Board, as manager of City and County property, wishes to thank the City Council and County Commissioners for their confidence and cooperation in this matter. Sincerely, o -J Bruce W. Lo Airport Manage AGREEMENT TO DIVIDE COSTS OF PURCHASING LEASEHOLD IMPROVEMENTS The parties to this Agreement are the City of Yakima, Washington and Yakima County, Washington, who are joint owners of the Yakima Air Terminal. WHEREAS, the City of Yakima and Yakima County are jointly entering into an agreement for sale and purchase of leasehold improvements with Corporate Aircraft Services, Inc., a Washington corporation, and Wayne G. Turner, individually; and WHEREAS, the City of Yakima and the County of Yakima each wish to pay one-half (50%) of the costs of purchasing said leasehold improvements; and WHEREAS, the subject of the Agreement for sale and pur- chase of leasehold improvements is that certain Airport Lease Agreement originally dated February 8, 1982, between the City of Yakima, as Lessor, and Yakima Executive Aircraft, Inc., as Lessee; and WHEREAS, on August 15, 1984, the then Lessor and Lessee under the Lease entered into an Amendment to Airport Lease Agreement for purposes of identification, copies of the Lease and Amendment are attached hereto as Exhibits A-1 and A-2. NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties agree as follows: The City of Yakima herewith agrees to pay one-half of the cost of purchasing the above referenced leasehold and improve- ments up to a cost of Sixty -Four Thousand, Two Hundred and Fifty Dollars ($64,250). Yakima County hereby agrees to pay one-half f the cost of the above -referenced purchase of leasehold improvements up (AgriTerminal) Page 1 to a total cost of Sixty -Four Thousand, Two Hundred and Fifty Dollars ($64,250). CITY OF YAKIMA, WASHINGTON City Manager By: -11,-. \-i11-1(.-cAp City Clerk CM' CONTRACT NO. YAKIMA COUNTY, WASHINGTON By: Alex Deccio Commissioner By: Graham Toliefsoi Co o er By: (Agr/Terminal) Page 2 0.°41$/ile Chuck Klarie, Commissio fr < �4,/ --( `'j <shall ( ,4 AIRPORT LEASE NMERAENr THIS AGREEMENT, executed this S77. day of nj.. -a-L-� , 1982, by and between the City of Yakima, Washington, a municipal corporation, hereinafter called the City, and Yakima Executive Aircraft, Inc., herein- after called the Lessee: W ITNESSET H: WHEREAS, the City owns and operates the Yakima Air Terminal and has ground space available for lease as provided by this agreement, and Lessee .--ires to occupy and use such ground space in accordance with this agre t. NOW, T m -a• *RE, in consideration of the mutual promises contained herein and the benefit to be derived by each party, the parties agree as follows: 1. Premises: ,The City does hereby lease and let unto Lesc;cc, and Lessee .oes hereby hire and take from the City, certain ground space at the YakAir Terlrin.: -3n the City of Yakima, Yakima County, Wash- ington, as •at gr "A", attached -re with the right o and across common between the leased ound s e is depicted on the drawing marked Exhibit to and this reference made a part hereof, together ingress • and egress from the leased premises over lic ac ire% way$, together with the right of access pr- 'ses and'....jacent taxiway. 2. Term: The tenancy crea =. by this agreement shall commence on July 1, 1981 and expire on June 300991. 3. $ental: A. Subject to ovisions of sub paragraph B of this paragra�h Lessee promises and agrees to pay rental to the City at the rate of $2, 7.00 per year for th eased premises, which payment be made in lve (12) equal month l installments due in advance on or before the tenth y of each mor\\. ayments shall be made to the City of Yakima, AiLFort agar's Offic the Yakima Air Terminal. B. The rental rate provided by pa raph A of this paragraph shall be subject to review and mxlificatio at ar intervals during the tern of the tenancy on the second, ,th and eighth year anniversary of the commencement of the term. A .: ision that a rental rate adjustment is necessary shall be }cased on the ollowing criteria: (a) The general Change in the cost of living ... measured by the Seattle/Everett Metropolitan Area Consumer Price In•= — A11 Urban Consumers; (b) General changes in the value of real estate having comparable use; and (c) The relationship between revenues and expenditures at the Yakima Airport. It is anticipated that the City and the Lessee will agree as to the need for, and/or rate of, any rental aijustnent. In the event}of dis- agreement between the parties as to the need for, or the rate of, an adjustment, the rental rate shall be adjusted according to the average fixed base operation land rental rates at the following airports: Tri-Cities/Pasco; Spokane International; Bowers Field -- Ellensburg; LEASE I/A 1 Pullman/ Moscow; Walla Walla; Richland; Wenatchee and Grant County (Moses Lake). The actual amount of adjusted rental shall be computed according to the following schedule of rates: The year taxi adjustment shall equal 60 percent of such average rental rate; The year four adjustment shall equal 70 percent of such average rental rate; The year six adjustment shall equal 80 percent of sudz average rental rate; The year eight adjustment shall equal 90 percent of suds average rental rate; and The year ten adjustment and adjustment for all years thereafter shall equal 100 percent of sudz average rental rate. 4. Taxes and Liens: In addition to the rental reserved in para- graph 3 of this agreement, Lessee promises and agrees to pay, as the same became due and payable, all license fees and taxes, including but not limited to the leasehold excise tax (R.C.W. 81.29 A), required to be paid by Lessee by reason of this lease agreement for 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 encum- brance on the leased premises by reason of Lessee's occupancy thereof. 5. Utility and Janitorial Service: Lessee shall pay for elec- trical power, and shall also be responsible for paying for any other utility service, to the leased premises. Lessee shall also obtain and pay for its own janitorial service. 6. Use: Lessee promises and agrees to use the leased premises as a general aviation fixed base operation. The use of the premises for any other purpose shall be deemed a material breath of this agreement constituting grounds for its termination. 7. Improvement: All buildings and other improvements by Lessee to the leased premises shall conform to applicable construction codes, and Lessee shall procure all building and other permits therefore. All such improvements shall be designers with a view toward aesthetic con- siderations and shall include landscaping features; and work on any improvenents'shall not commence until plans and specifications therefore have been submitted to and approved by the Yakima City Manager as to aesthetic considerations and landscaping features. 8. Ownership and Removal of Buildings: The parties agree that ownership of the buildings constructed by Lessee on the leased premises shall remain in Lessee; provided electrical and other. utility service facilities and connections shall constitute realty owned by the City and shall not to subject to removal on the expiration or termination of the tenancy. Subject to the rights and options of the City as provided in para- graph 9 of this agreement, upon the expiration or termination of the tenancy, Lessee may remove its buildings frau the premises, with such removal to be accomplished within thirty (30) days frau such expiration or termination. Lessee, in its removal of the buildings, shall use care LEASE I/A 2 so as to minimize damage to the premises, including the electrical and utility services thereto and the taxi ramp constructed thereon. In the event Lessee fails to remove its buildings from the premises within thirty (30) days frau such expiration or termination, the build- ings shall than became part of the real estate and title thereto shall vest in the City. 9. Cif" s Option to Purdlase: During the tenancy or anytime thereafter 1- ':ore the removal of the building(s) frau the leased pre- mises, as contemplated by paragraph 8 of this agreement, Lessee shall notify the City in writing in the event Lessee intends to sell any such building(s) to a third party, which notice shall contain a copy of a contract for :uch sale binding the parties thereto except for the right of the City ) exercise this cption. For a period of fifteen days after its receipt )f such notice, the City shall have the first right and option to bo; the building(s) on the sane terms and conditions as the intended sale. Further, the City shall have the absolute right and option to purdlase any or all of Lessee's buildings on the leased premises on the termination r expiration of the tenancy, regardless of whether ter- minated by ei:_her party giving notice to the other at the end of the ten year term, or whether the tenancy expires at the conclusion of the six year renewed term, all as contemplated by paragraph 16 of this agree- ment. This cption may be exercised by the City after such notice of termination is given by either party, but written notice of the City's intent to exercise this option mist be given no later than sixty (60) days prior to the termination or expiration date, whether. at the end of the ten year or sixteen year term. Further, in the event of termination of this agreement and for- feitnre of rental as provided by pmragraph 14 of this agreement, the City shall have the absolute right and option to purdiase any or all of Lessee's buildings on the leased premises upon the City's giving written notice to Lessee of the City's intent to exercise this option, which notice must be given simultaneously with the notice of termination and forfeiture. In the event the City exercises any of its optional rights pursuant to this paragraph, it is contemplated that the parties shall negotiate in an effort to agree on a mutually satisfactory purdiase price. How- ever, in the event the parties cannot agree on a purdzase price, the price shall be determined by an appraisal performed by an appraiser who shall be chosen by mutual agreement of the parties, and the cost of such an independent appraisal shall be borne equally by the -parties. 10. Subletting -- Assignment: Lessee shall not assign or other- wise transfer this lease agreement nor sublet the leased premises or any part thereof without first obtaining written consent of the City; and such consent may be given or withheld at the discretion of the City, but such consent shall not be unreasonably withheld. LEASE I/A 3 • 11. Indemnity and Waiver: Lessee shall defend the City against, and indemnify and hold the City harmless from, every claim of any nature Whatsoever made against the City based on or arising frau the occupancy of the leased premises by Lessee or from any act or omission.of Lessee, its employees, agents or any other person acting on behalf of Lessee or under its direction. Lessee shall file with the Yakima City Clerk a certificate of insurance, or other proof of. ins urance.acceptable to the City, evidencing an insurance policy with the City of Yakima named as an additional insured party providing comprehensive liability- insurance coverage in amounts of not $500,000 for any one accident with property damage insurance one accident covering Lessee's the leased premises. 12. Regulations: Lessee less than $250,000. for one person and involving injury to more than one person, in the minimum amount of $250,000 for any occupancy of and activities pertaining to agrees to comply with all laws, ord- inances, rules and regulations applicable to the use and operation of Yakima Air Terminal property, facilities and operations as those laws, ordinances, rules and regulations now exist or may hereafter become effective so as to apply to the occupancy and use by Lessee of the leased premises and the conducting of Lessee's operations thereon or therefrom. 13. Miscellaneous Provisions: (a) The parties agree that the City, through its City Manager, Airport Manager, or other person authorized by either of'them, may enter upon the leased premises at any reasonable time to make such inspections as the City may deer expedient to the proper enforcement of any tern,_ provision or condition of this lease agreement; provided, no such entry and inspection by the City is required by this agreement, and the fail- ure of the City to enter and make inspection shall not alter the rela- tionship of the parties <_nd their respective rights and duties provided by this agreement. (b) The City may ._grther develop or improve Yakima Air Terminal property and facilities ,3 it deans desirable, regardless of the desire or views of Lessee in o_.:nection with any such development or improve- ment, and without inter .rence or hindrance on the part of Lessee and without liability to Les:.2e. (c) The City reser es the right, but shall not be obligated to Lessee, to maintain and 2ep in repair the landing area of the airport and all publicly -owned -acilitis of the airport, together with the right to direct and con _col all activities of Lessee in that regard. (d) The City reser es the right to take any action deemed nec- essary or desirable by the City to protect the aerial"apptbaches of the airport against obstruction, together with the right to prevent Lessee from erecting, or permitting to be erected, any building or other struc- ture on the Yakima Air Terminal which, in the opinion of the City Air- port Manager, would limit the usefulness of the Yakima Air Terminal or constitute a hazard to aircraft. LEASE I/A 4 (e) During the time of war or national emergency, the City 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 agreement shall be suspended insofar as they are inconsistent with the provisions of the lease agree- ment with the United States Government. (f) This lease agreement shall be subordinate to the provisions of any existing or future agreement between the City and the United States of America relative to the operation or maintenance of the Yakima Air Terminal, the execution of which has been or may be required as a con- dition precedent to the expenditure of federal funds for the development of the Yakima Air Terminal. 14. Termination and Forfeiture: The failure by Lessee to pay rental in the amounts and at the times specified herein, or the failure by Lessee to otherwise comply with any tern, provision or condition of this agreement, shall constitute grounds for termination of this agree- ment and the tenancy hereby created and for forfeiture of all rental paid by Lessee to the time of termination. This agreement and tenancy shall terminate and rental pail shall be forfeited for cause as spec- ified above on written notice by the City to Lessee stating the amount of rental in default or stating the breach by Lessee on which the ter- mination is based, and that Lessee shall pay the rental in default or otherwise comply with this agreement in the manner specified in the notice within thirty (30) days from Lessee's receipt of such notice, otherwise this agreement and tenancy shall be terminated and rental forfeited. Such notice shall be given in writing and personally served on Lessee in the manner provided by law or service of summons and com- plaint, or mailed by certified mail with return receipt requested ad- dressed to Lessee at its address stated below Lessee's signature to this agreement. In the event of sudh termination and forfeiture, the City may exercise its right and option to buy any or all of Lessee's buildings on the leased premises, as provided by paragraph 9 of this agreement. 15. Non -Discrimination Cla):se: 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 nut unjustly discriminatory basis to all users thereof, and to Charge fair, reasonable, and not unjustly dis- criminatory prices for each unit of service, provided, that Lessee may make reasonable and not discriminatory discounts, rebates or other similar types of price reductions to volume purdhasers of Lessee's services. Lessee further promises and agrees that it will not, on the grounds, of race, color, or national origin, discriminate or permit discrimination against any person or group of persons in any manner prohibited by federal law and regulations. Lessee's breach of any promise or agreement contained in this paragraph shall constitute grounds for the termination of this agreement, and in addition thereto, the City shall have the right to take such other remedial action as the United States Government may direct. LEASE I/A 5 16. Automatic Renewal: This lease, and the tenancy hereby creat- ed, reated, shall be automatically renewed for one six (6) year term following its ten (10) year expiration date unless either party gives written notice of termination to the other party no less than 90 days prior to the lease expiration date. During that renewed term, the provisions, terms and conditions of this agreement shall apply, except that the rental rate shall be subject to adjustment at that time to reflect 100 percent of the average rental, as computed by the formula set out in sub paragraph 3B of this agreement; and rental rates will continue to be subject to review during the renewed term at two (2) year intervals on the twelfth and fourteenth anniversary of the ccmnencenent of the ori- ginal term. 17. Insolvency. In the event Lessee is declared bankrupt by a court of competent jurisdiction or 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 judgment against Lessee, then in that event the City 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 agreement and the tenancy hereby created shall absolutely terminate, but without prejudice to any ren- edies which might otherwise 1e available to the City for collection of past due rent for any breach by Lessee of any covenants contained in this agreement. 18. Removal Financing: In the event of any termination of this lease by the City of Yakima by reason of the implementation of the expansion program under the Yakima Municipal Airport Master Plan and in the further event that federal funding provides financing for the re- rroval of improvements and facilities, it is agreed and understood that the City of Yakima shall take all steps reasonably necessary to obtain financial assistance for the removal of Lessee's building to a new location within the boundary of the Yakima Air Terminal. Executed the day and year first above written. CITY OF YAKIMA, WASHINGTON a municipal corporation, By 1� ATTEST: City Cie" LEASE I/A City Manager Address of Lessee: 6 STATE OF WASHIIGTON ) . ss. COUNTY 0 F YAI@7A ) On this day personally appeared before me Richard A. Zais, Jr., and Iris Litzenberger, to me }mown to be the City,Manager and 'City Clerk, respectively, of the City of Yakima, the corporation that executed the within foregoing Lease Agreement, and acknowledged the same instrument to be the free and voluntary act and deed of said corporation, for the uses and purposes therein mentioned, and on oath stated that they are authorized to execute this Lease Agreement and that the seal placed thereon is the corporate seal of said corporation GIVEN under by hand and official seal this X,7/ day of , 1982. Notary Publicand for the State of Washington, residing at Yakima. LEASE I/A 7 >f'_' 7 -- - - R14 14. -C, TOTAL GROUND SPACE ~ 86,900 SQ FT -_,,� \ �r r:oq E:ev Ilia \\ ! I — I ' kcr Or. b - �� 15 " 1 , gr I 1 41.• L'1:J — r —/ :,tom=-- •e--", .- --`. `r�/�'n• — t a::g �do- --11% .44.., ° /: ,Y be r / r- i / 1 /� 1. Orr 4114 ci i '1\11 EIw. IO: S F !ure. 7hrev�-� ls 4- • .v'� I i i_ 1 YS.ftjl i 1 ! i. ELEV 1050.3 DI NC Cle Ar e AD CO:' 0 0 4 AMENDMENT TO AIRPORT LEASE AGREEMENT THIS AMENDMENT, executed this 15th day of August, 1984, by and between the YAKIMA AIR TERMINAL BOARD, an agency of the City and County of Yakima, Washington, hereinafter called the BOARD, and Wayne G. Turner, an individual, and Corporate Aircraft Services, Inc. a Washington corporation, WITNESSETH: WHEREAS, the City of Yakima and Yakima Executive Aircraft, Inc., entered into a lease agreement dated July 1, 1981, and WHEREAS, the City of Yakima assigned said lease to the Yakima Air Terminal Board on July 1, 1982, and WHEREAS, Yakima Executive Aircraft and its successor, the Yakima Indian Nation, assigned, with the approval of the BOARD, the lease to WAYNE G. TURNER, a single man, and CORPORATE AIRCRAFT SERVICES, INC., a Washington corporation, hereinafter called the LESSEE, on August 15, 1984, and WHEREAS, the BOARD has determined it to be in the best interests of the Airport to modify some of the terms of the lease, and WHEREAS, LESSOR has agreed to said modifications, NOW, THEREFORE, in consideration of the mutual promises contained herein and the benefit to be derived by each party, the parties agree that the following various sections of the forementioned lease Agreement are hereby amended to read as follows: 1. PREMISES: The Board does hereby lease and let unto Lessee, and Lessee does hereby hire and take from the Board, certain ground space at the Yakima Air Terminal in the City of Yakima, Yakima County, Washington, as that ground space is depicted on the drawings marked Exhibits "A", N.R. and ", attached hereto and by this reference made a' part hereof, to ether with the right of ingress to and egress from the leased premises over and across common public access ways, together with the right of access between the leased premises and adjacent taxiway. 2. TERM: The tenancy created by this Agreement commenced on July 1, 1981, and shall expire on June 30, 1993. 3. RENTAL: A. Subject to the provisions of sub -paragraph B of this section, L- see promises and agrees to pay rental to the Board at the rate of $2,.: .00 per year for the ground leased as shown in Exhibit 39 l —. /d.- i -5 -/iia) "A", which payment shall be made in twelve (12) equal monthly installments due in advance on or before the tenth day of each month. Payments shall be made to the Yakima Air Terminal, Airport Manager's Office, 2300 W. Washington Avenue, Yakima, Washington 98903. Any rental payment past due shall accrue a delinquency charge of eighteen percent (18%) per annum. B. The rental rate provided by sub -paragraph A of this section shall be subject to review and modification at two year intervals during the term of the tenancy on the second, fourth, sixth, eighth and tenth year anniversary of the commencement of the term. A decision that a rental rate adjustment is necessary shall be based on the following criteria: (1) The general change in the cost of living as measured by the Seattle/Everett Metropolitan Area Consumer Price Index - All Urban Consumers; (2) General changes in the value of real estate having comparable use; and (3) The relationship between revenues and expenditures at the Yakima Air Terminal. It is anticipated that the Board and the Lessee will agree as to the need for, and/or rate of, any rental adjustment. In the event of disagreement between the parties as to the need for, or the rate of, an adjustment, the rental rate shall be adjusted according to the average fixed base operation land rental rates at the following airports: Tri-Cities/Pasco; Spokane International; Bowers Field -- Ellensburg; Pullman/Moscow; Walla Walla; Richland; Wenatchee and Grant County (Moses Lake). The actual amount of adjusted rental shall be computed according to the following schedule of rates: The year two adjustment shall equal 60 percent of such average rental rate; The year four adjustment shall equal 70 percent of such average rental rate; The year six adjustment shall equal 80 percent of such average rental rate; The year eight adjustment shall equal 90 percent of such average rental rate; and The year ten adjustment and adjustment for all years thereafter shall equal 100 percent of such average rental rate. C. As partial consideration for the option to purchase granted by Lessee at Section 4, below, rental for the ten tiedown spaces shown in Exhibits '�$" and " " shall be determined as follows: 1. Monthly rental for the period August 15, 1984 through August 14, 1985, shall be included in the rental sum specified at Section 3A above. 2. Monthly rental for the period August 15, 1985 through August 14, 1986, shall be $100 per month to be paid by Lessee to Lessor monthly in advance, in addition to the sums provided for at Section 3A and B. �/ / . 0 .0-0 3. Monthly rental for the remainder of the lease shall be ten times the monthly rate established by the Board for a tie down space available to any month-to-month occupant. D. Should the Board exercise its option to purchase Lessee's building (Exhibit A), upon the favorable terms set out at Section 4 below, and in further consideration of said option to purchase, rental therefore shall, for the first five years after exercise of option, be the fair rental value thereof, but in no event to exceed seventy-five percent (75%) of the monthly loan cost (principal and interest) to Turner on the SeaFirst loan immediately prior to the date of exercise of the option, on a building lease to be co -extensive with the expanded term of the land lease. After the first five years beyond the date of exercise of the option, and every second year thereafter, the lease payment on the building and improvements shall be at its full market value, but not greater than any increase in the Consumer Price Index for the Seattle All Urban Index with the base period equal to the date the purchase option was exercised, whichever is lower. Rental pay- ments shall be in advance, commencing the first calendar day of the month following exercise of the option. 4. BOARD'S OPTION TO PURCHASE: A. BOARD may purchase the building depicted in Exhibit "A" and all improvements from LESSEE at any time during the period August 15, 1984, through August 14, 1986, at a cost to be determined as follows: 1. $120,000, plus 2. depreciated value of improvements placed or affixed thereto by Turner subsequent to his acquisition of the building, other than trade fixtures, plus 3. a sum equal to the amount of interest paid on Turner's bank loan to purchase the building (loan #15'g023 -c0018 ) at SeaFirst Bank from date of loan to date of BOARD purchase. B. During the tenancy or anytime thereafter before the removal of the building(s) from the leased premises, as contemplated by this Agreement, LESSEE shall notify the BOARD in writing in the event LESSEE intends to sell any such building(s) to a third party, which notice shall contain a copy of a contract for such sale binding the parties thereto except for the right of the BOARD to exercise this option. For a period of thirty (30) days after its receipt of such notice, the BOARD shall have the first right and option to buy the building(s) on the same terms and conditions as the intended sale. Further, the BOARD shall have the absolute right and option to purchase any or all of LESSEE's buildings on the leased premises on the termination or expiration of the tenancy, regard- less of whether terminated by either party giving notice to the other at the end of the leasehold term, or whether the tenancy expires at the conclusion of any renewal term, all as contemplated by elsewhere in this Agreement. This option may be exercised by the BOARD after such notice of termination is given by either party, but written notice of the BOARD's intent to exercise this option must be given no later than sixty (60) days prior to the termination or expiration date, whether at the end of the primary term or any renewal term. Further, in the event of termination of this Agreement and forfeiture of rental as provided by paragraph 14 of the primary lease Agreement, the BOARD shall have the absolute right and option to purchase any or all of LESSEE's buildings on the leased premises upon the BOARD's giving written notice to LESSEE of the BOARD's intent to exercise this option, which notice must be given simultaneously with the notice of termination and forfeiture. In the event the BOARD exercises any of its option rights pursuant to this Section, it is contemplated that the parties shall negotiate in an effort to agree on a mutually satisfactory purchase price (where computation is not elsewhere provided for). However, in the event the parties cannot agree on a purchase price, the price shall be determined by an appraisal performed by an appraiser who shall be chosen by mutual Agreement of the parties, and the cost of such an independent appraisal shall be borne equally by the parties. If the parties cannot agree upon one appraiser each shall appoint an appraiser, those two shall appoint a third and the decision of any two shall be binding upon both. Each party shall share equally the cost of the third appraiser. 5. 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. 6. Except as herein modified, the lease agreement of July 1, 1981, is confirmed and ratified in all respects, binding upon the parties hereto, their successors, heirs and assigns. Time is of the essence of this entire Agreement. Executed as of the day and year first above written. ATTEST Secretary STATE OF WASHINGTON ) County of Yakima ss YAKIMA AIR TERMINBOARD By: Chairman On this day personally appeared before me William F. Almon and Don Heinen, to me known to be the Chairman and Secretary respectively of the Yakima Air Terminal Board, the entity that acknowledged the same instrument to be the free and voluntary act and deed of said BOARD, for the uses and purposes therein mentioned, and on oath stated that they are authorized to execute this Lease Amendment on behalf of said BOARD. Given under my hand and official seal this 15th day of August, 1984. 7 KNOTA PUBLIC is State of Washington, at Yakima. residing WAYNE G. TURNER, individual (1) attor Address: Lcuc., 130CQ w tope, sr fA.�,wi4 (Ai a 9 f07 Phone: 5o c, 2. s-- 51s - STATE OF WASHINGTON ) ss County of Yakima On this day personally appeared before me Wayne G. Turner to me known to be the individual that executed the within and foregoing Lease Amendment, and acknowledged the same instrument to be his free and voluntary act and deed for the uses and purposes therein mentioned. Given under my hand and official seal this 13"day of NOUEvvv$_,_. 1984. STATE OF WASHINGTON ) ss County of Yakima N AR PUBLIC ‘n and for the State of Wa hington, residing at =ma. StLP t�. CORPORATE AIRCRAFT SERVICES, INC. By : tcJ•,�, Title: PSS, 2 On this day personally appeared before me WA'jN%„ V . TURNt.t2 to me known to be the Pfa.t i vU r of Corporate Aircraft Services, Inc., the entity that executed the within and foregoing Lease Amendment, and acknowledged the same instrument to be the free and voluntary act and deed of said Corporation, for the uses and purposes therein mentioned, and on oath stated that he is authorized to execute this Lease Amendment on behalf of said Corporation. Given under my hand and official seal this 13TH day of ppttrhAte, 1984. NR PUBLIC i"n and f(br the State of Washington, residing at Ydkimd. EXHIBIT ,A" ' 86 900 SQ Fr 4 too A 00)'(\5fOgp ACPT SVCS C iTse weLL r