HomeMy WebLinkAboutFS 2015-12-08 Item 2A - Lease Agreement - 6300 Building Office Space for Sound Cities AssociationCity of Tukwila
Jim Haggerton, Mayor
INFORMATIONAL MEMORANDUM
TO: Mayor Haggerton
Finance and Safety Committee
FROM: Bob Giberson, Public Works Director
DATE: December 4, 2015
SUBJECT: Sound Cities Association
Lease Amendment — Suite 206, 6300 Building
ISSUE
Approve the lease amendment with Sound Cities Association (SCA).
BACKGROUND
In 2006, the City entered into a five year lease of Suite 206 in the 6300 Building and an
amendment extended the lease through 2012. A new lease agreement was executed in 2013
to include an additional 360 square feet of space, City - provided phone and technology services,
and a new monthly rent of $1,703.33 for 2013, $1,764.17 for 2014, and $1,825.00 for 2015.
A new lease amendment has been negotiated to extend the lease until December 31, 2018 with
rent at $1,885,83/month for 2016, $2,007.50 /month for 2017 and $2,068.33 /month for 2018.
DISCUSSION
The current lease with SCA expires on January 31, 2016. This lease amendment extends the
lease through December 31, 2018 and continues to benchmark the lease rate to surrounding
market rate rents.
RECOMMENDATION
Council is being asked to formally approve the lease amendment with SCA for an extended
lease term and increase in rent, and consider this item on the Consent agenda for Special
Council Meeting on December 14, 2015.
ATTACHMENTS:
Draft of the SCA Lease Amendment
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LEASE AMENDMENT
THIS LEASE AMENDMENT is made this day of , 20
between CITY OF TUKWILA ( "LANDLORD "), and SOUND CITIES ASSOCIATION
( "TENANT ").
WHEREAS, Landlord and Tenant entered into a Lease dated January 8, 2013 for
those certain premises located at Suite 206, 6300 Southcenter Blvd., Tukwila,
Washington (the "PREMISES "), as more fully described in the Lease. Capitalized terms
used but not otherwise defined herein shall have the meanings given to them in the Lease;
and
WHEREAS, Landlord and Tenant desire to modify the Lease as provided herein.
NOW, THEREFORE, in consideration of the covenants and agreements
contained herein, the parties hereby mutually agree as follows:
TERM. The Lease for Suite 206 shall expire on December 31, 2018. Therefore,
the Term of the current Lease for Suite 206 shall be extended from January 31,
2016 and expiring December 31, 2018.
4. RENTAL RATE ADJUSTMENT. The adjusted rental rates are as follows:
2/01/2016 — 12/31/2016 $15.50 /sf /yr $1,885.83/mth $22,630/yr
1/01/2017 — 12/31/2017 $16.50 /sf /yr $2,007.50 /mth $24,090/yr
1/01/2018 — 12/31/2018 $17.00 /sf /yr $2,068.33/mth $24,820/yr
Except as expressly modified above, all terms and conditions of the Lease remain in full
force and effect and are hereby ratified and confirmed.
IN WITNESS WHEREOF, the parties hereto have entered into this I"
Amendment to Lease as of the date first written above.
LANDLORD:
City of Tukwila
By:
Title:
Date:
TENANT:
Sound Cities Association
By:_
Title:
Date:
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