Executive/Council Action Form (ECAF)
ITEM TITLE:
Title
Motion 21-222, authorizing the Executive to execute lease documents for Bomarc Business Park Lots 1 & 2 including a partial termination, lease amendment, agreement to record environmental covenant and new lease to Bosa Bomarc, LLC at the Snohomish County Airport
body
DEPARTMENT: Airport
ORIGINATOR: Nickolis Landgraff
EXECUTIVE RECOMMENDATION: Approve
PURPOSE: Authorize the Executive to execute lease documents and modifications to Bomarc Lot 1 & 2 including a partial termination, lease amendment, agreement to record environmental covenant and new lease to Bosa Bomarc, LLC.
BACKGROUND:
Ø Snohomish County Airport (County) and Boeing are parties to a land lease dated July 19, 1989, pursuant to which Boeing leases from the County two parcels of land, known as Bomarc Lot 1 and Bomarc Lot 2.
Ø Boeing is currently negotiating the terms of an agreed order with the Washington State Department of Ecology, that will supersede Agreed Order No. DE 96HS-N274 dated January 29, 1997 with respect to Bomarc Lot 1 and pursuant to which Boeing will be obligated to, among other things, perform certain remedial actions at Bomarc Lot 1 and work with the County to record an environmental covenant that will burden Bomarc Lot 1.
Ø Notwithstanding the obligations under the Agreed Order that Boeing is currently negotiating in relation to Bomarc Lot 1, Boeing desires to terminate its leasehold interest in, and certain obligations arising under the Lease that relate to, Bomarc Lot 1, thereby allowing the County to enter into a new lease agreement with a new tenant, Bosa Bomarc, LLC for Bomarc Lot 1 and amend the Bomarc Lot 2 Lease by removing Lot 1 from the premises covered by that Lease.
Ø The Airport is in agreement and requests approval of the following documents:
§ Agreement to Record Environmental (Restrictive) Covenant and to Amend a Lease
§ Partial Termination of Lease (Bomarc Lot 1)
§ Lease Amendment No. 4 to Lot 2 Bomarc (Bomarc Lot 2)
§ Land Lease 21-013 with Bosa Bomarc, LLC (Bomarc Lot 1)
FISCAL IMPLICATIONS:
|
EXPEND: FUND, AGY, ORG, ACTY, OBJ, AU |
CURRENT YR |
2ND YR |
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
|
|
|
|
REVENUE: FUND, AGY, ORG, REV, SOURCE |
2021 (6.5 Months) |
2ND YR |
Total |
|
410.3216802.6250 Commercial Leases |
$235,553.50 |
|
$235,553.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
$235,553.50 |
|
$235,553.50 |
DEPARTMENT FISCAL IMPACT NOTES: Airport Enterprise Fund revenues shall increase by $235,553.50. This fee may be prorated based on the closing date.
CONTRACT INFORMATION:
|
RECORD OF ENVIRONMENTAL COVENANT |
X |
CONTRACT# |
Environ. Covenant |
AMOUNT |
No Change |
|
BOEING LEASE TERMINATION |
X |
CONTRACT# |
Bomarc Lot 1 Termination |
AMOUNT |
$235,553.50 |
|
BOSA BOMARC, LLC NEW LEASE |
X |
CONTRACT# |
Bosa Development New Lease 21-013 |
AMOUNT |
No Change |
|
BOEING LEASE AMEND. NO. 4 |
X |
CONTRACT# |
Bomarc Lot 2 Amendment No. 4 |
AMOUNT |
No Change |
Contract Period
|
ORIGINAL ENV. |
START |
Perpetual |
END |
Perpetual |
|
LEASE TERM. |
START |
7/19/1989 |
END |
Upon Execution |
|
NEW LEASE |
START |
Upon Execution |
END |
50 Years |
|
AMENDMENT No.4 |
START |
7/19/1989 |
END |
5/31/2049 |
OTHER DEPARTMENTAL REVIEW/COMMENTS: Approved/Reviewed by Finance and Risk