HomeMy WebLinkAbout274-24 RESOLUTION113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 274-24 File Number: 2024-579 T-HANGAR (REVISED LEASE & RATE INCREASE): A RESOLUTION TO APPROVE A REVISED T-HANGAR LEASE FORMAT UPDATING TERMS AND CONDITIONS, INCREASING RENT FOR 2025 BY 15%, AND ADOPTING A YEARLY 3% INFLATION ADJUSTMENT BEGINNING IN 2026, AND TO AUTHORIZE MAYOR JORDAN TO SIGN THE T-HANGAR LEASES WHEREAS, Drake Field operates 81 T-Hangars which are designed to store single and twin -engine personal aircraft; and WHEREAS, the current lease format has not substantially changed since its adoption in 2006; and WHEREAS, T-Hangar leases are the only lease format on the field that do not include an automatic inflation adjustment and rental rates were last adjusted in 2018, and WHEREAS, airport staff completed a hangar rate study earlier this year and determined the current rates were below market average. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves a revised T-Hangar lease format updating terms and conditions, a 15% one-time rate increase, and the adoption of a yearly 3% inflation adjustment beginning in 2026, and further authorizes Mayor Jordan to execute the T-Hangar leases. PASSED and APPROVED on November 7, 2024 Attest: Lioneld Jorda7r Jac n Shelton, Senior e u k � JShlSip n'���tJ'i TR"rrr FAYETTEVILLE Page 1 . � RKA �• ��i "9S � 9 • N'P' � � Office of the City Clerk Treasurer Kara Paxton — City Clerk Treasurer Jackson Shelton — Senior Deputy City Clerk OF 4AYETTF 1 i 0 µM .. 4 RKAN SPS 113 W. Mountain Street, Suite 308 Fayetteville, Arkansas 72701 Phone: 479.575.8323 cityclerk@fayetteville-ar.gov Departmental Correspondence To: Lioneld Jordan, Mayor From: Kara Paxton, City Clerk Treasurer'��G CC: City Attorney Kit Williams, Senior Assistant Blake Pennington, Chief of Staff Susan Norton & Chief Financial Officer Paul Becker Date: November 8, 2024 RE: City Clerk Treasurer Kara Paxton — Out of Office due to Medical Procedure Mayor Lioneld Jordan, Due to a medical procedure, I will be unavailable to sign documents or attend meetings starting November 11th, 2024. 1 plan to be back in the office as of November 25th, 2024. Senior Deputy City Clerk Treasurer Jackson Shelton or Deputy City Clerk — Codifier Courtney Spohn will notify you should these dates change. The recommended recovery time for my medical procedure (Spinal Cord Stimulator Implant) ranges from 4 to 8 weeks. The surgeon stated that I must be off work for at least one week. The surgeon also encouraged me to utilize telework options in the weeks following the initial surgery week. He also stated that should I need to physically come to work, I need to park as close to the building as possible, no lifting/carrying heavy or large objects, and no sudden twisting or turning. In my absence, I authorize Senior Deputy City Clerk Treasurer Jackson Shelton to attest your (Mayor Lioneld Jordan) signature. Should an issue arise that Mr. Shelton is not available to sign within a 24- hour timeframe, I authorize Deputy City Clerk — Codifier Courtney Spohn to sign in our absence. As the official custodian of the City's seal, I authorize Mr. Shelton and Ms. Spohn to use the seal for official purposes only. Please direct city staff to route all Alcohol Permits to Mr. Shelton for review and electronic signature. Please notify the Accounting Department that check requests will be reviewed and signed by Ms. Spohn before being emailed to the Accounting Department. Ms. Spohn will also be responsible for approving purchase requests submitted November 11th — November 15th, 2024. Mr. Shelton and Ms. Spohn will go above and beyond to ensure that our office continues to support all our internal and external customers while I am out of office. Over the last 3 years Ms. Spohn has continuously demonstrated her professionalism and advanced skillset in her positions. Mr. Shelton has been with our office for almost 2 years now and has consistently impressed me by going above and beyond in his work duties. I am confident that Mr. Shelton and Ms. Spohn will successfully manage the office while I am out. M/10 CITY OF FAYETTEVILLE ARKANSAS MEETING OF NOVEMBER 7, 2024 TO: Mayor Jordan and City Council THRU: Susan Norton, Chief of Staff FROM: Jared Rabren, Airport Director SUBJECT: Revised T-Hangar Lease & Rate Increase RECOMMENDATION: CITY COUNCIL MEMO 2024-579 The Aviation Division recommends the approval of a revised T-Hangar lease format which includes updated terms and conditions, a 15% one-time rate increase and the adoption of a yearly 3% inflation adjustment beginning in 2026. BACKGROUND: Drake Field operates 81 T-Hangars which are designed to store single and twin -engine personal aircraft. The current lease format has not substantially changed since its adoption in 2006. T-Hangar leases are the only lease format on the field that do not include an automatic inflation adjustment. Airport staff completed a hangar rate study earlier this year and determined the current rates were below market average. Rental rates were last adjusted in 2018. DISCUSSION: In agreement with the recommendation of the Airport Board, staff proposes a one-time increase of 15% for all T-hangar leases, effective January 1, 2025, and the adoption of a 3% per year inflation adjustment beginning January 1, 2026. Additionally, staff recommends the adoption of the revised lease agreement which fixes formatting issues, removes outdated references, updates phraseology to current FAA standards, condenses and clarifies late fees and termination deadlines - as requested by the Airport Board - and adds terms regarding negligent operation of hangar doors and equipment. Additional requests made by the Airport Board that are not included in this item are changes to term length and language regarding common or shared facilities. BUDGET/STAFF IMPACT: This will provide approximately $28,000 in additional revenue. ATTACHMENTS: SRF (#3), Revised T-Hangar Lease Agreement Sample Draft PDF (#4), Revised T-Hangar Lease Agreement - End Rent Escalation In 2029 (#5) Mailing address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 == City of Fayetteville, Arkansas Y 113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 - Legislation Text File #: 2024-579 Revised T-Hangar Lease & Rate Increase A RESOLUTION TO APPROVE A REVISED T-HANGAR LEASE FORMAT UPDATING TERMS AND CONDITIONS, INCREASING RENT FOR 2025 BY 15%, AND ADOPTING A YEARLY 3% INFLATION ADJUSTMENT BEGINNING IN 2026, AND TO AUTHORIZE MAYOR JORDAN TO SIGN THE T-HANGAR LEASES WHEREAS, Drake Field operates 81 T-Hangars which are designed to store single and twin -engine personal aircraft; and WHEREAS, the current lease format has not substantially changed since its adoption in 2006; and WHEREAS, T-Hangar leases are the only lease format on the field that do not include an automatic inflation adjustment and rental rates were last adjusted in 2018; and WHEREAS, airport staff completed a hangar rate study earlier this year and determined the current rates were below market average. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves a revised T- Hangar lease format updating terms and conditions, a 15% one-time rate increase, and the adoption of a yearly 3% inflation adjustment beginning in 2026, and further authorizes Mayor Jordan to execute the T- Hangar leases. Page 1 Jared Rabren Submitted By City of Fayetteville Staff Review Form 2024-579 Item ID 10/15/2024 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 9/24/2024 AIRPORT SERVICES (760) Submitted Date Division / Department Action Recommendation: The Aviation Division recommends the approval of a revised T-Hangar lease format which includes updated terms and conditions, a 15% one-time rate increase and the adoption of a yearly 3% inflation adjustment beginning 2026. Account Number Project Number Budgeted Item? No Does item have a direct cost? No Is a Budget Adjustment attached? No Purchase Order Number: Change Order Number: Original Contract Number: Comments: Budget Impact: Fund Project Title Total Amended Budget $ - Expenses (Actual+Encum) $ - Available Budget Item Cost $ - Budget Adjustment $ - Remaining Budget V20221130 Previous Ordinance or Resolution # Approval Date: 'FYAYETTEVILLE DRAKE I FIELD HANGAR RENTAL AGREEMENT Fayetteville Executive Airport, Drake Field Lease Application and Accounting Information Form Full Legal Name of Tenant: Authorized Representative(s) and Title(s) if Tenant is not an individual: Physical Address: Mailing Address (if different): Current Status of Corporation: (Provide Copy of Certificate of Good Standing or other documentation) Business and/or Services to Be Provided: Phone/Work: -- Phone/Home: - - Emergency Contact Name: Social Security or Tax LD No. Phone/Cell: Email: Emerg Phone: Date of Birth: Aircraft Number: N 0 IRV Aircraft Make/Model/Year: N/A Aircraft Color Scheme: N/A Aircraft Type: N/A Person conducting the business and/or providing the service if different from above: Name: Phone: - - E-mail: Hours of Operation: Total Number of Employees: I, * , agree to provide the Airport with changes to current address, telephone, aircraft, and insurance information. Admin Use Only: Hangar Number: Hangar Type: Effective Date: Monthly Rental: $ LEASE AGREEMENT The City of Fayetteville ("City") hereby leases to ,("Lessee"), on a monthly basis, a hangar for the above described aircraft on the following terms and conditions. This month -to -month lease is intended for aeronautical use. It is not intended to be used for maintenance on any aircraft other than the above -described aircraft, storage of hazardous materials, or storage of non - aeronautical materials. 1. AIRPORT RULES AND ACCESS: A. Lessee shall abide by "The Minimum Standards for Fayetteville Executive Airport, Drake Field", City of Fayetteville codes and ordinances, county, state, federal Statutes, Federal Aviation Regulations, and environmental laws. B. Hazardous activities such as, but not limited to, smoking, welding, use of spark producing devices (i.e. grinders), painting, doping, open fuel lines or the application of hazardous substances are expressly prohibited. C. Lessee shall keep the aircraft storage space clean and free of grease, oil, paper and other debris. All flammables must be stored in a metal container with a tight fitting lid with sump capability at minimum or any other approved containment device. Combustible liquids such as lube oil may be stored in small quantities. (See Airport's Minimum Standards). No additional label is necessary if company label already indicates flammable liquid or type liquid contained. Flammable storage (other than inside the aircraft fuel storage tank) is limited to a maximum of 10 gallons in each Hangar unit. The premises covered by this Agreement shall not be used for the storage of explosive substances or items. D. Aircraft shall be removed from a hangar for any activity involving fueling or defueling. E. The City and its designated agents may enter hangars at any time for inspection. Only locks provided by the City may be used on hangar doors. F. Flying Clubs shall provide copies of the flying club bylaws, current insurance documents, and current membership roster to be submitted annually to the Airport Administration Office. 2. RENT: A. Monthly hangar rent for 2025 appears in the table below. Rent shall increase by 3% on January 1 each year. Rent is invoiced in advance and shall be due on the first day of each month. Lessee further agrees to pay upon demand any excise or other tax on the leasehold interest. Hangar Type 2025 Single $205 Multi $250 Modified S $280 Modified L $375 B. The non-payment of rent may be grounds for termination of this Agreement. Lessee will also be subject to a late fee of 10% per month for any delinquent rental payment. Delinquent accounts may be sent to a collection agency in accordance with City of Fayetteville's collection/termination policies after 90 days. 2 3. STRUCTURAL MODIFICATIONS: A. No structural or electrical modifications, painting, or alterations will be made to the storage space without the prior written approval of the Airport Director. B. Lessee shall not attach any hoisting, winching or holding mechanism to any part of the storage space, or pass any such mechanism over the beams or braces thereof. 4. ELECTRICAL APPLIANCES: A. Limited electrical appliances are allowed in a hangar including portable fans, televisions, refrigerators, radios, dehumidifiers, engine heaters, powered tow bars, battery trickle chargers, and small air compressors. Prohibited appliances include, but are not limited to, air conditioners, electric heaters, hot plates, heat lamps, and stoves. Any appliance not having an explosion -proof motor which generates a glow, flame, or spark must be elevated at least eighteen (18) inches above the floor. No appliances, except refrigerators, dehumidifiers, battery trickle chargers and engine heaters, may remain connected to any electrical receptacle when the hangar is not occupied. B. Lessee shall not overload electrical circuits. Hangar electrical circuits are designed for 20 amps. 5. MOTOR VEHICLES: A. Vehicles shall be driven on the airport only by a licensed driver in accordance with policy established in the Airport's Minimum Standards. Lessee shall maintain currency of registration as well as limits of liability and property damage insurance, as mandated by the State of Arkansas, on its vehicle. Lessee will exercise all controls and restraints necessary as to its employees, agents, and invitees so as to comply with this Agreement. B. Lessee shall complete an Access Agreement prior to being issued a security badge. Lessee is responsible for guests and shall not allow guests to drive unescorted anywhere inside the Aircraft Operations Area (AOA). C. Vehicles must be located so as not to block aircraft access route between any hangars, as per the Airport's Minimum Standards. Vehicles will be parked in accordance with signage and pavement markings unless directed otherwise by the City. 6. ENGINE OPERATION: No aircraft engine shall be operated inside a hangar or in a negligent manner so that the propeller or exhaust blast may cause injury to persons or damage to property. 7. PROPERTY DAMAGE/PERSONAL INJURY: Aircraft and other personal property are stored at Lessee's sole risk. Any insurance protecting Lessee agrees to hold the City harmless from any and all liability by reason of the storage or maintenance of said aircraft upon the Fayetteville Executive Airport, Drake Field, or from injury or damage caused to any persons or property by reason of the operations of said aircraft. Insurance requirement shall be in accordance with the Airport's Minimum Standards and a current Certificate of Insurance shall be on file at the Airport Administration Office. This clause shall not be construed to waive that tort immunity as set forth under Arkansas Law. 8. AIRCRAFT MAINTENANCE: Maintenance repair work that requires open flame, use of spark producing devices (i.e. grinders), welding, or the use of flammable liquids is not permitted in any Aircraft Storage Hangar. Opening fuel cells and fuel lines is not permitted in any storage hangar. 9. NO COMMERCIAL ACTIVITY: No commercial or revenue -producing activities shall be conducted or permitted from any aircraft storage space without written approval of the Airport Director. 10. NO ASSIGNMENT: The aircraft storage space designated above is rented on a month -to -month basis for aircraft storage only. Such space may not be sublet, assigned or otherwise transferred without the prior written approval of the Airport Director. Only the aircraft identified in this Agreement may be stored in this hangar unless prior written notice is provided to the Airport Director. Tenant shall notify City when ownership of the authorized aircraft changes. 11. FITNESS FOR USE: The T-hangar buildings are non -insulated, unheated, non -air-conditioned metal buildings with bi-fold electric doors. The bi-fold doors are heavy and pose a crush hazard. Lessee is advised to remain clear when the door is in transit. Lessee shall not allow the door to open or close unsupervised. Lessee is advised to remain within reach of door controls while the door is in transit and stop the door immediately upon abnormal operation or failure. Lessee shall not attach or allow to be attached to the door any additional weight, nor use the door as a hoist. I Tenant shall be financially responsible for all repairs as a result of operating the doors unsupervised or in a negligent manner. Each T-hangar bay is supplied with lighting and electrical service as part of the lease. The electric doors are on separate circuits. The power available is limited and service is shared among the tenants of each building. The buildings can be expected to protect the contents from the elements but should not be considered completely weather tight. Driving rain may enter the buildings under the walls or through cracks along the door jams, under roll up doors or along roll up door seals. In the past, ground water has seeped into the buildings through the floor during unusually wet conditions. It is recommended that tenants not store perishables directly on the floor but rather place stored items on pallets or shelves that keep items off the floor. 12. TERMINATION: A. This Agreement shall be deemed a "month -to -month" tenancy and may be terminated by either party upon giving thirty (30) days notice to the other in writing, prior to the end of any such rental period. B. This Agreement may be terminated by the City upon ten (10) days written notice for any violation of the terms or conditions of this Agreement. C. If Lessee fails to make any payment due hereunder within ten (10) days of the date on which such payment is due, the City of Fayetteville may, at its option, terminate this agreement and take possession of such of Lessee `s personal property as is reasonably necessary to secure payment of the amount due and unpaid. 13. NOTICE: Any Notice or consent required by this Agreement shall be sufficient if sent by Certified Mail, return receipt requested, postage paid, to the following address for the City, or for the tenant, the El last known address or copy thereof may be posted upon the entryway door of the above mentioned hangar. CITY OF FAYETTEVILLE Airport Administration Office 4500 S. School Ave., Suite F Fayetteville, AR 72701 Phone: 479-718-7642 14. REMOVAL OF ITEMS UPON EXPIRATION OR TERMINATION. Upon expiration or other termination of this lease, Lessee `s rights to use of the demised premises shall cease, and Lessee shall vacate the premises within ten (10) days. All fixtures, improvements, equipment, and other property brought, installed, erected or placed by Lessee on the demised premises shall be deemed to be personal property and shall remain the property of Lessee. Lessee shall have the right at any time during the term of this agreement, to remove any or all of such property from the Airport, subject, however, to Lessee `s obligations to repair all damages, if any, resulting from such removal. Any and all property not removed by Lessee prior to the expiration of this lease shall thereupon become the property of the City of Fayetteville and title thereto shall thereupon vest in the City of Fayetteville. 15. All covenants, conditions and provisions in this agreement shall extend to and bind the legal representatives, successors and assigns of the respective parties hereto. Lessee: I have received a copy of "The Minimum Standards for the Fayetteville Municipal Airport Drake Field" (initial) Signature of Individual or Authorized Agent Title Printed Name APPROVED: Airport Director ♦ Date Date THE CITY OF FAYETTEVILLE: 11 /7/2024 Lioneld Jordan, Mayor Date ATTEST: Jackson Shelton, Senior Deputy City Clerk Attachment "A" to Hangar Rental Agreement For Execution by Partners in Aircraft I agree to be bound by the terms and conditions of the hangar Rental Agreement Effective Lessee Name: Partner # 1: Address Signature: Partner #2: Address Signature: Partner #3: Address Ow Signature: Partner #4 Address Signature: (day/month/year) for Hangar # IN Received From Blake Pennington 12/29/2024 10:47AM DEPARTMENTAL CORRESPONDENCE OFFICE OF THE CITY ATTORNEY Kit Williams City Attorney Blake Pennington Senior Assistant City Attorney TO: Mayor Jordan Hannah Hungate City Council Assistant City Attorney Stacy Barnes Paralegal CC: Jared Rabren, Airport Director FROM: Blake Pennington, Senior Assistant City Attorne DATE: October 29, 2024 RE: Revisions to T-Hangar Lease Agreement City staff met with the Airport Board on October 17, 2024, to discuss the issues that had been raised about the T-hangar leases. At the end of that meeting, staff indicated a willingness to change the lease agreement to end the automatic 3% raises after 2029. The new recommended rent escalation language is: "Rent shall increase by 3% on January 1 each year through 2029 at which time the City will determine if further rent increases are necessary." Staff does not recommend any other changes to the lease agreement. Therefore, attached is the new proposed draft T-Hangar lease agreement for your consideration. If the City Council approves the new language, please amend the resolution to incorporate the new lease agreement. 'FAYETTEVILLE DRAKE Y FIELD HANGAR RENTAL AGREEMENT Fayetteville Executive Airport, Drake Field Lease Application and Accounting Information Form Full Legal Name of Tenant: Authorized Representative(s) and Title(s) if Tenant is not an individual: Physical Address: Mailing Address (if different): 00 Current Status of Corporation: (Provide Copy of Certificate of Good Standing or other documentation) Business and/or Services to Be Provided: Phone/Work: -- Phone/Home: - - Emergency Contact Name: Social Security or Tax I.D No. Phone/Cell: Email: Emerg Phone: Date of Birth: Aircraft Number: N Aircraft Make/Model/Year: N/A Aircraft Color Scheme: N/A Aircraft Type: N/A y Person conducting the business and/or providing the service if different from above: Name: Phone: - - E-mail: 1< Hours of Operation: Total Number of Employees: I, , agree to provide the Airport with changes to current address, telephone, aircraft, and insurance information. Admin Use Only: Hangar Number: Hangar Type: Effective Date: Monthly Rental: $ LEASE AGREEMENT The City of Fayetteville ("City") hereby leases to ,("Lessee"), on a monthly basis, a hangar for the above described aircraft on the following terms and conditions. This month -to -month lease is intended for aeronautical use. It is not intended to be used for maintenance on any aircraft other than the above -described aircraft, storage of hazardous materials, or storage of non - aeronautical materials. 1. AIRPORT RULES AND ACCESS: A. Lessee shall abide by "The Minimum Standards for Fayetteville Executive Airport, Drake Field", City of Fayetteville codes and ordinances, county, state, federal Statutes, Federal Aviation Regulations, and environmental laws. B. Hazardous activities such as, but not limited to, smoking, welding, use of spark producing devices (i.e. grinders), painting, doping, open fuel lines or the application of hazardous substances are expressly prohibited. C. Lessee shall keep the aircraft storage space clean and free of grease, oil, paper and other debris. All flammables must be stored in a metal container with a tight fitting lid with sump capability at minimum or any other approved containment device. Combustible liquids such as lube oil may be stored in small quantities. (See Airport's Minimum Standards). No additional label is necessary if company label already indicates flammable liquid or type liquid contained. Flammable storage (other than inside the aircraft fuel storage tank) is limited to a maximum of 10 gallons in each Hangar unit. The premises covered by this Agreement shall not be used for the storage of explosive substances or items. D. Aircraft shall be removed from a hangar for any activity involving fueling or def ieling. E. The City and its designated agents may enter hangars at any time for inspection. Only locks provided by the City may be used on hangar doors. F. Flying Clubs shall provide copies of the flying club bylaws, current insurance documents, and current membership roster to be submitted annually to the Airport Administration Office. 2. RENT: A. Monthly hangar rent for 2025 appears in the table below. Rent shall increase by 3% on January 1 each year through 2029 at which time the City will determine if further rent increases are necessary. Rent is invoiced in advance and shall be due on the first day of each month. Lessee further agrees to pay upon demand any excise or other tax on the leasehold interest. Hangar Type 2025 Single $205 Multi $250 Modified S $280 Modified L $375 B. The non-payment of rent may be grounds for termination of this Agreement. Lessee will also be subject to a late fee of 10% per month for any delinquent rental payment. Delinquent accounts may be sent to a collection agency in accordance with City of Fayetteville's collection/termination policies after 90 days. 2 3. STRUCTURAL MODIFICATIONS: A. No structural or electrical modifications, painting, or alterations will be made to the storage space without the prior written approval of the Airport Director. B. Lessee shall not attach any hoisting, winching or holding mechanism to any part of the storage space, or pass any such mechanism over the beams or braces thereof. 4. ELECTRICAL APPLIANCES: A. Limited electrical appliances are allowed in a hangar including portable fans, televisions, refrigerators, radios, dehumidifiers, engine heaters, powered tow bars, battery trickle chargers, and small air compressors. Prohibited appliances include, but are not limited to, air conditioners, electric heaters, hot plates, heat lamps, and stoves. Any appliance not having an explosion -proof motor which generates a glow, flame, or spark must be elevated at least eighteen (18) inches above the floor. No appliances, except refrigerators, dehumidifiers, battery trickle chargers and engine heaters, may remain connected to any electrical receptacle when the hangar is not occupied. B. Lessee shall not overload electrical circuits. Hangar electrical circuits are designed for 20 amps. 5. MOTOR VEHICLES: A. Vehicles shall be driven on the airport only by a licensed driver in accordance with policy established in the Airport's Minimum Standards. Lessee shall maintain currency of registration as well as limits of liability and property damage insurance, as mandated by the State of Arkansas, on its vehicle. Lessee will exercise all controls and restraints necessary as to its employees, agents, and invitees so as to comply with this Agreement. B. Lessee shall complete an Access Agreement prior to being issued a security badge. Lessee is responsible for guests and shall not allow guests to drive unescorted anywhere inside the Aircraft Operations Area (AOA). C. Vehicles must be located so as not to block aircraft access route between any hangars, as per the Airport's Minimum Standards. Vehicles will be parked in accordance with signage and pavement markings unless directed otherwise by the City. 6. ENGINE OPERATION: No aircraft engine shall be operated inside a hangar or in a negligent manner so that the propeller or exhaust blast may cause injury to persons or damage to property. 7. PROPERTY DAMAGE/PERSONAL INJURY: Aircraft and other personal property are stored at Lessee's sole risk. Any insurance protecting Lessee agrees to hold the City harmless from any and all liability by reason of the storage or maintenance of said aircraft upon the Fayetteville Executive Airport, Drake Field, or from injury or damage caused to any persons or property by reason of the operations of said aircraft. Insurance requirement shall be in accordance with the Airport's Minimum Standards and a current Certificate of Insurance shall be on file at the Airport Administration Office. This clause shall not be construed to waive that tort immunity as set forth under Arkansas Law. 8. AIRCRAFT MAINTENANCE: Maintenance repair work that requires open flame, use of spark producing devices (i.e. grinders), welding, or the use of flammable liquids is not permitted in any Aircraft Storage Hangar. Opening fuel cells and fuel lines is not permitted in any storage hangar. 9. NO COMMERCIAL ACTIVITY: No commercial or revenue -producing activities shall be conducted or permitted from any aircraft storage space without written approval of the Airport Director. 10. NO ASSIGNMENT: The aircraft storage space designated above is rented on a month -to -month basis for aircraft storage only. Such space may not be sublet, assigned or otherwise transferred without the prior written approval of the Airport Director. Only the aircraft identified in this Agreement may be stored in this hangar unless prior written notice is provided to the Airport Director. Tenant shall notify City when ownership of the authorized aircraft changes. 11. FITNESS FOR USE: The T-hangar buildings are non -insulated, unheated, non -air-conditioned metal buildings with bi-fold electric doors. The bi-fold doors are heavy and pose a crush hazard. Lessee is advised to remain clear when the door is in transit. Lessee shall not allow the door to open or close unsupervised. Lessee is advised to remain within reach of door controls while the door is in transit and stop the door immediately upon abnormal operation or failure. Lessee shall not attach or allow to be attached to the door any additional weight, nor use the door as a hoist. Tenant shall be financially responsible for all repairs as a result of operating the doors unsupervised or in a negligent manner. Each T-hangar bay is supplied with lighting and electrical service as part of the lease. The electric doors are on separate circuits. The power available is limited and service is shared among the tenants of each building. The buildings can be expected to protect the contents from the elements but should not be considered completely weather tight. Driving rain may enter the buildings under the walls or through cracks along the door jams, under roll up doors or along roll up door seals. In the past, ground water has seeped into the buildings through the floor during unusually wet conditions. It is recommended that tenants not store perishables directly on the floor but rather place stored items on pallets or shelves that keep items off the floor. 12. TERMINATION: A. This Agreement shall be deemed a "month -to -month" tenancy and may be terminated by either party upon giving thirty (30) days notice to the other in writing, prior to the end of any such rental period. B. This Agreement may be terminated by the City upon ten (10) days written notice for any violation of the terms or conditions of this Agreement. C. If Lessee fails to make any payment due hereunder within ten (10) days of the date on which such payment is due, the City of Fayetteville may, at its option, terminate this agreement and take possession of such of Lessee `s personal property as is reasonably necessary to secure payment of the amount due and unpaid. 13. NOTICE: Any Notice or consent required by this Agreement shall be sufficient if sent by Certified Mail, return receipt requested, postage paid, to the following address for the City, or for the tenant, the 0 last known address or copy thereof may be posted upon the entryway door of the above mentioned hangar. CITY OF FAYETTEVILLE Airport Administration Office 4500 S. School Ave., Suite F Fayetteville, AR 72701 Phone: 479-718-7642 14. REMOVAL OF ITEMS UPON EXPIRATION OR TERMINATION. Upon expiration or other termination of this lease, Lessee `s rights to use of the demised premises shall cease, and Lessee shall vacate the premises within ten (10) days. All fixtures, improvements, equipment, and other property brought, installed, erected or placed by Lessee on the demised premises shall be deemed to be personal property and shall remain the property of Lessee. Lessee shall have the right at any time during the term of this agreement, to remove any or all of such property from the Airport, subject, however, to Lessee `s obligations to repair all damages, if any, resulting from such removal. Any and all property not removed by Lessee prior to the expiration of this lease shall thereupon become the property of the City of Fayetteville and title thereto shall thereupon vest in the City of Fayetteville. 15. All covenants, conditions and provisions in this agreement shall extend to and bind the legal representatives, successors and assigns of the respective parties hereto. Lessee: I have received a copy of "The Minimum Standards for the Fayetteville Municipal Airport Drake Field" (initial) Signature of Individual or Authorized Agent Title Printed Name APPROVED: ]k Airport Director Date Date THE CITY OF FAYETTEVILLE: Lioneld Jordan, Mayor Date Jackson Shelton, Senior Deputy City Clerk Attachment "A" to Hangar Rental Agreement For Execution by Partners in Aircraft I agree to be bound by the terms and conditions of the hangar Rental Agreement Effective (day/month/year) for Hangar # Lessee Name: Partner #1: Address Signature: Partner #2: Address Signature: Partner #3: Address Signature: Partner #4 Address Signature: 31