Loading...
HomeMy WebLinkAbout01-88 RESOLUTION SCAN N ED NO RESOLUTION FOR RES . 1-88 FOUND LEASE AGREEMENT ATTACHED RUHH aaxoezze INaNaaxoV asVaa aMnoa 88-T • sax 1103 NoTInaosax ON . MI410MLM19 LEASE AGREEMENT iVl K U 'JL ME D This LEASE AGREEMENT made this r,?✓� day of , 19 ‘0 , between the City of Fayetteville, Arkansas, hereinafter called "Lessor" , and Aero-Tech Services, Inc. , hereinafter called "Lessee" . WHEREAS, Lessor is the owner of an airport known as the Fayetteville Municipal Airport (Drake Field) , herein referred to as the "Airport" ; and WHEREAS, Lessor has constructed an aircraft hangar at the Airport; and WHEREAS, Lessee desires to lease said aircraft hangar. NOW, THEREFORE, the parties in consideration of the mutual covenants contained herein, hereby agree as follows: 1. Lessor leases to Lessee, and Lessee leases from Lessor, aircraft hangar at Lessor' s Airport as reflected on Exhibit "A" attached hereto and made a part hereof. 2. Lessee is granted the use, in common with other similar- ly authorized, of the Airport, together with all facilities, equipment, improvements, and services which have been or may hereafter be provided at or in connection with the Airport from time to time including, but not limited to, the landing field and any extensions thereof or additions thereto, roadways, runways, aprons, taxiways, flood lights, landing lights, beacons, control tower, signals, radio aids, and all other conveniences for flying, landings and take-offs. 3 . Lessee shall have at all times the full and free right in ingress to and egress from the demised premises and facilities referred to herein for Lessee, its employees, customers, passen- gers, guests, and other invitees. Such rights shall also extend to persons or organizations supplying materials or furnishing services to Lessee. 4. Subject to earlier termination as hereinafter provided, the initial term of this agreement shall be for one ( 1) year commencing on *the 1st day of March , 19 87 , and ending on the 29th day of February , 19 88 . If during -2- the term of this agreement, Lessor issues bonds to finance the demised premises, Lessor hereby grants Lessee three options to renew this lease, subject to the following terms and conditions: (a) the term of each option period shall be equal and the total length of the three options shall equal the amortization period of the bonds to be issued by Lessor to finance construction of the aforesaid hangar; (b) the monthly rent during each option period shall be determined in accordance with the following formula: Total Debt Service on Bonds for Monthly rent = Option Period + 2% of gross Number of Months in Option sales per month Period (excluding fuel sales and aircraft sales) (c) Lessee must exercise any option by giving Lessor written notice at least ninety ( 90) days prior to expiration of the existing term; (d) . Lessee shall be responsible for proper maintenance of the demised premises; (e) Lessee shall reimburse Lessor for the premium paid by Lessor for fire and extended insurance coverage on the entire executive hangar. 5. During the initial term of this lease, Lessee agrees to pay Lessor for the use of the demised premises, facilities, rights, and privileges granted hereunder the sum of $ 1674_ 17 plus 2% of gross sales per month. The term "Gross Sales" shall include, but shall not be limited to, sundry sales, oil and lubricants, aircraft charter and taxi service, aircraft engine, airframe and accessory sales and maintenance, aircraft rental, flight training, and specialized services ; provided, the term "gross sales" shall not include the sale of new and used aircraft. Said sum of $ 1674.17 shall be payable in advance on or before the loth day of each month. The 2% of gross sales will be payable in arrears on or before the 20 th day of the following month. In the event of late payment, a ten per cent ( 10%) penalty compounded monthly, shall be due and payable immediately. 6. Lessor shall maintain and keep in good repair so much of the Airport premises as is not under the exclusive control of individual lessees. 7. Lessee shall provide for and supply at its expense all janitor service with respect to the demised premises, and shall -3- pay for all utilities serving the demised premises, including, but not limited to heat, light, gas, electricity, and water. 8. Lessee agrees to observe and obey Lessor' s ordinances and regulations with respect to use of the demised premises and Airport; provided, however, such rules and regulations shall be consistent with safety and with rules, regulations and orders of the Federal Aviation Administration with respect to aircraft operations at the Airport. 9. Lessor authorizes Lessee to use the premises for Aircraft Engine, Airframe and Accessory Sales and Maintenance, Aircraft Rental and Sales, and Flight Training which operations shall be subject to Lessor' s Minimum Standards for Commercial Aeronautical Activities at Drake Field which are incorporated herein by reference thereto and made a part hereof as if set out word for word. No other vehicles, equipment or supplies shall be stored on the premises unless expressly agreed to by Lessor. Lessee further agrees not to store any flammable material on the premises or in any way endanger or violate the provisions of Lessor' s property damage insurance policy or the requirement of same. Such violations shall constitute a material breach of this agreement. 10. If the demised premises are partially damaged by fire or other casualty, said premises shall be repaired with due diligence by Lessor at Lessor' s expense. If the damage is so extensive as to render such building untenable, the rent payable hereunder shall be proportionally paid up to the time of such damage and shall thenceforth cease until such time as the premises shall be fully restored. If the demised premises are completely destroyed, Lessor may reconstruct the hangar at Lessor' s own cost and the rent payable hereunder shall be adjusted as set forth above, or Lessor may, at its option, cancel this agreement, such cancella tion to be effective as of the date the hangar was destroyed, and the rent adjusted as set forth above. 11. Lessee shall procure and maintain in force during the term of this agreement fire and extended coverage insurance on -4- Lessee' s aircraft in the amount equivalent to the replacement cost thereof. Lessor shall procure and maintain in force during the term of this agreement fire and extended coverage on the aircraft hangar in an amount equivalent to the replacement cost thereof. Lessee shall also be required to insure any contents within the aircraft hangar. During the term of this agreement Lessee shall at all times maintain general public liability insurance in the amount of $ 2,000,000.00 . Lessee shall file with Lessor' s airport manager certificates of insurance evidencing the insurance coverage required hereby. 12 . Lessee agrees to indemnify Lessor against any liability for injuries to persons or damage to property caused by Lessee' s negligent use or occupancy of the leased premises; provided, however, that Lessee shall not be liable for any injury, damage or loss occasioned by the negligence of Lessor or its agents or employees; and provided further, that Lessor shall give to Lessee prompt and timely notice of any claim made or suit instituted which in any way directly or indirectly affects or might affect Lessee, and Lessee shall have the right to compromise and defend the same to the extent of its own interest. This paragraph shall not be construed as a waiver by Lessor of Lessor' s statutory tort immunity. 13 . If Lessee fails to make any payment due hereunder within thirty ( 30) days of the date on which such payment is due, Lessor may, at its option, terminate this agreement and take possession of so much of Lessee' s personal property as is reasonably neces- sary to secure payment of the amount due and unpaid. Lessor shall also have the right to terminate this agreement in the event Lessee breaches anyother term of this agreement. Lessee shall g be entitled to seven ( 7) days written notice of termination. 14. On the expiration or other termination of this lease, Lessee' s right to use the demised premises shall cease, and Lessee shall vacate the premises without unreasonable delay. All property installed, erected, or placed by Lessee in, on, or about -5- the premises leased hereunder shall be deemed to be personal and shall remain the property of Lessee. Lessee shall have the right at any time during the term of this agreement, or any renewal or extension hereof, and for an additional period of seven (7) days after the expiration or other termination of this agreement, to remove any or all of such property, subject, however, to Lessee' s obligation to repair all damage, if any, resulting from such removal. Any and all property not removed by Lessee prior to the expiration of the aforesaid seven (7 ) days period shall thereupon become a part of the land on which it is located and the title thereto shall thereupon vest in Lessor. 15. Lessor may enter the premises leased to Lessee at any reasonable time for any purpose necessary or incidental to the performance of its obligations of Lessee' s obligations hereunder. 16. Lessee shall maintain the demised premises in a clean and orderly fashion at all times. 17 . Lessee shall not store any flammable materials on the demised premises or in any way violate the provisions of Lessor' s insurance policy on the aircraft hangar or the requirements of said policy. 18 . Lessee shall not start or operate aircraft engines within the aircraft hangar leased hereby and shall not allow such operation by any other person. 19 . Lessee shall not at any time assign this lease or sublet the demised premises without the prior written consent of Lessor. 20 . Any notice or consent required by this agreement shall be sufficient if sent by certified mail, return receipt requested, postage prepaid, to the following address: Lessor: City of Fayetteville c/o Airport Manager 113 W Mountain Fayetteville, Arkansas 72701 Lessee: Aero-Tech Services, Inc. P. 0. Box 1266 Fayetteville, AR 72702 Telephone: 443-4343 21. This agreement shall be construed under the laws of the State of Arkansas. • -6- 22. All the covenants, conditions, and provisions under this agreement shall extend to and bind the legal representatives, successors, and assigns of the respective parties hereof. CITY OF FAYETTEVILLE, ARKANSAS LESSOR By: M yr 9Q14-4"1-4----1 yo ATTEST7,-- By: 21/ Clerk AERO-TECH SERV CES, INC. LESSEE By: Title: ATTEST By: Title: