HomeMy WebLinkAbout177-25 RESOLUTION113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Resolution: 177-25
File Number: 2025-1048
A RESOLUTION TO APPROVE A FOUR-YEAR LEASE AGREEMENT WITH CREAMER PILOT
SERVICES, LLC FOR OFFICE SPACE IN THE AIRPORT TERMINAL BUILDING AND CORPORATE
HANGAR SPACE AT 4500 SOUTH SCHOOL AVENUE FOR RENT IN THE AMOUNT OF $5,411.30 PER
MONTH FOR THE FIRST YEAR
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 four year lease agreement with
Creamer Pilot Services, a copy of which is attached to this Resolution and made a part hereof, for office space in the
Airport Terminal Building and corporate hangar space for rent in the amount of $5,411.30 per month during year one,
$7,500.00 per month during year two; and an additional percentage increase over the previous year CPI-U or 2%,
whichever is greater, during years three and four.
PASSED and APPROVED on August 5, 2025
Approved: Attest:
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Molly Rawn, Mayor
Kara Paxton, City Clerk Treasurer
Page 1
CITY OF
FAYETTEVILLE
ARKANSAS
MEETING OF AUGUST 5, 2025
CITY COUNCIL MEMO
TO: Mayor Rawn and City Council
THRU: Keith Macedo, Chief of Staff
Terry Gulley, Asst Public Works Director - Ops
Chris Brown, Public Works Director
FROM: Jared Rabren, Airport Director
SUBJECT: Creamer Pilot Services Corporate Hangar and Office Space Lease
RECOMMENDATION:
2025-1048
The Aviation Division requests a resolution to approve and allow the Mayor to sign a lease agreement between
the City of Fayetteville (COF) and Creamer Pilot Services (CPS) for approximately 18,750 square feet of
corporate hangar space and 2,730 square feet of office space in the Terminal Building located at 4500 S
School Ave. This is a four year lease agreement.
BACKGROUND:
This lease agreement will replace a previous agreement between the City of Fayetteville and Creamer Pilot
Services for space currently occupied by CPS.
DISCUSSION:
City staff have been in negotiations with CPS since late 2024 to find mutually agreeable terms for CPS's
continued tenancy. Primary changes to the agreement include a stepped rate increase for lease areas and
provisions for a pre-existing fuel rate included in a separate ground lease owned by CPS.
BUDGET/STAFF IMPACT:
This lease will provide $64,939.20 in revenue in year one, $90,000 in revenue in year two, and will be adjusted
annually for years three and four based on CPI or by 2%, whichever is greater.
ATTACHMENTS: 3. Staff Review Form, 4. Creamer Lease Signed
Mailing address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701
_= City of Fayetteville, Arkansas 113 West Mountain Street
Fayetteville, AR 72701
(479)575-8323
- Legislation Text
File #: 2025-1048
A RESOLUTION TO APPROVE A FOUR-YEAR LEASE AGREEMENT WITH CREAMER
PILOT SERVICES, LLC FOR OFFICE SPACE IN THE AIRPORT TERMINAL BUILDING
AND CORPORATE HANGAR SPACE AT 4500 SOUTH SCHOOL AVENUE FOR RENT IN
THE AMOUNT OF $5,411.30 PER MONTH FOR THE FIRST YEAR
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 four year lease
agreement with Creamer Pilot Services, a copy of which is attached to this Resolution and made a part
hereof, for office space in the Airport Terminal Building and corporate hangar space for rent in the
amount of $5,411.30 per month during year one, $7,500.00 per month during year two; and an
additional percentage increase over the previous year CPI-U or 2%, whichever is greater, during years
three and four.
Page 1
Jared Rabren
Submitted By
City of Fayetteville Staff Review Form
2025-1048
Item ID
7/15/2025
City Council Meeting Date - Agenda Item Only
N/A for Non -Agenda Item
6/22/2025 AIRPORT SERVICES (760)
Submitted Date Division / Department
Action Recommendation:
The Aviation Division requests a resolution to approve and allow the Mayor to sign a lease agreement between the
City of Fayetteville and Creamer Pilot Services for approximately 18,750 square feet of corporate hangar space and
2,730 square feet of office space in the Terminal Building located at 4500 S School Ave. This is a four year lease
agreement.
Account Number
Project Number
Budgeted Item? No
Does item have a direct cost? No
Is a Budget Adjustment attached? No
Budget Impact:
Total Amended Budget
Expenses (Actual+Encum)
Available Budget
Item Cost
Budget Adjustment
Remaining Budget
Fund
Project Title
V20221130
Purchase Order Number: Previous Ordinance or Resolution #
Change Order Number: Approval Date:
Original Contract Number:
Comments:
LEASE AGREEMENT
This LEASE AGREEMENT made this 164' day of a���- , 2025, by and
between the City of Fayetteville, Arkansas, hereinafter called "City", and Creamer Pilot Services,
LLC, 4500 S School Avenue, Suite M, Fayetteville, AR 72701, hereinafter called "Creamer."
WHEREAS, the City is the owner of an airport known as the Fayetteville Airport, Drake Field,
herein referred to as the "Airport"; and
WHEREAS, City is the owner of an aircraft hangar and office space at the Airport; and
WHEREAS, Creamer desires to lease said corporate aircraft hangar and office space,
NOW, THEREFORE, the parties, in consideration of the mutual covenants contained herein,
hereby agree as follows:
1. City leases to Creamer, and Creamer leases from City, approximately 18,750 square feet of
corporate hangar space and 2730 square feet of office space in the Terminal Building located at
4500 S. School Ave, Fayetteville, Arkansas, as reflected on "Exhibit A" attached hereto and made
a part hereof ("Leased Premises").
2. Creamer is granted the use, in common with others similarly 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 hereof or additions thereto, roadways, runways, ramps, aprons,
taxiways, flood lights, landing lights, beacons, control tower, signals, radio aids, and all other
conveniences for flying, landings and take -offs.
3. Creamer 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 Creamer, its employees, customers, passengers,
guests, and other invitees. Such rights shall also extend to persons or organizations supplying
materials or furnishing services to Creamer.
4. Term: Subject to earlier termination as hereinafter provided, the initial term of this Lease
Agreement shall be for four (4) years ("Term") commencing on the first day June, 2025. The
Term may be extended by mutual agreement of the Fayetteville City Council and Creamer.
This Lease Agreement may be terminated by the Mayor or by Creamer with a six (6) month written
notice to the other.
5. Rent: Creamer agrees to pay the City for the use of the Leased Premises, facilities, rights, and
privileges granted hereunder the following amounts, which are adjusted beginning on the
anniversary date of this Lease Agreement:
1
Year 1: $5,411.60 per month
Year 2: $7,500.00 per month
Year 3 and 4: Monthly rate from previous year plus either the percentage increase over the
previous year CPI-U, or 2%, whichever is greater. CPI-U for this purpose is defined as
Consumer Price Index for All Urban Consumers (CPI-U); Series ID (CUUR0300SA0);
South Urban; All items, not seasonally adjusted for the index reference month. The
reference month shall be 2 months prior to the renewal date.
The initial lease payment is due and payable upon execution of this Lease Agreement, and all
subsequent monthly lease payments shall be invoiced and payable in advance of, or on, the 1st day
of each month. In addition to any remedy available to it hereunder, the City may impose as
additional rentals a delinquency charge on all invoiced and 5-day overdue payments, at the
maximum rate allowed by law.
6. City shall maintain and keep in good repair so much of the Airport premises as are not under
the exclusive control of Creamer. Creamer shall, at the termination, surrender or forfeiture of this
Lease Agreement, return the Leased Premises in same or better condition as they were at the
beginning of the Lease Agreement, normal wear and tear excepted.
7. Creamer shall provide for and supply at its expense all janitor services with respect to the
demised premises, and shall pay for all utilities serving the demised premises, including, but not
limited to heat, light, gas, electricity, and water, sewer and trash removal.
8. Improvements: Creamer shall bear the cost of all improvements or additions made to the interior
or exterior of the building on the Leased Premises. No improvements or additions to any part of
the Leased Premises shall be made by Creamer without the prior written approval of the Airport
Manager, whose consent will not be unreasonably withheld. Any signs or antennas to be erected
on or attached to the Leased Premises must have the prior written approval of the Airport Manager
and conform to all City Ordinances.
9. Maintenance: The City shall be responsible only for major maintenance of the existing
equipment, i.e. replacement of heating unit and other equipment in place in the Leased Premises
which includes, roof, hangar door motors, exterior walls, exterior plumbing, paved ramp and paved
parking lot. The City agrees that if the roof or any part of the exterior walls or exterior plumbing
of said building thereof shall become defective or damaged at any time during the term due to
ordinary wear and tear and not due to negligence of Creamer, or Creamer agents or invites, upon
notice from Creamer, the City will immediately cause repairs to be made and restore the defective
portions to good condition. If the damage is so extensive as to render such building untenantable,
the rent payable hereunder shall be proportionally paid up to the time of such damage and shall
thenceforth cease until such time as the Leased Premises shall be fully restored. If the demised
premises are completely destroyed, City may reconstruct the hangar at the City's own cost and the
rent payable hereunder shall be adjusted as set forth above, or City may, at its option, cancel this
Lease Agreement, such cancellation to be effective as of the date the hangar was destroyed, and
the rent adjusted as set forth above. Routine maintenance of the hangar doors shall remain the
2
responsibility of the City. Creamer shall not make any alterations to the controls of the hangar
doors.
10. Creamer agrees to observe and obey City's Ordinances and Regulations with respect to use of
the demised premises and Airport; provided, however, such Ordinances and Regulations shall be
consistent with safety and with all City, county, and state rules, regulations, including all current
fire codes, and orders of the Federal Aviation Administration with respect to aircraft operations at
the Airport, and provided further, such Ordinances and Regulations shall be consistent with the
provisions of this Lease Agreement or the procedures prescribed or approved from time to time by
the Federal Aviation Administration with respect to the operation of Creamer aircraft at the
Airport.
"The Minimum Standards for Fayetteville Executive Airport, Drake Field" herein referred to as
Airport Minimum Standards are made part of this Lease Agreement by reference as if included
word for word.
11. Creamer agrees that it shall use the premises for aeronautical business activity. Creamer agrees
that it shall use the premises only for the storage of airplanes and materials and equipment
necessarily related to the operation of said aeronautical business activity and that no other vehicles,
equipment or supplies shall be stored on the premises unless expressly agreed to by the City.
Creamer further agrees not to store any flammable material on the demised premises, other than a
limited supply of oils and agents necessary for current aircraft maintenance and repair, or in any
way endanger or violate the provisions of the City's standard commercially available property
insurance policy or the requirements of same. Such violations shall constitute a material breach
of this Lease Agreement.
12. Hazardous Substances: Creamer shall not cause or permit any Hazardous Substance to be
used or stored on or in the Leased Premises without first obtaining the City's written consent. If
hazardous Substances are used, stored, generated, or disposed of on or in the Leased Premises or
if the Leased Premises or any other Airport property becomes contaminated in any manner for
which Creamer is responsible or legally liable, Creamer shall indemnify and hold harmless the
City, its officers, directors, agents, servants, and employees from any and all claims, damages,
fines, judgments, penalties, costs, liabilities, or losses including all reasonable costs for
investigation and defense thereof, (including but not limited to attorney's fees, court costs, and
expert fees, and without limitation, decrease in value of the Leased Premises, damages caused by
loss or restriction of rentable or usable space as a part of the Leased Premises arising during or
after the term hereof and arising as a result of that contamination by Creamer, or Creamer's agents,
employees, and invitees. This indemnification includes, without limitation, all costs incurred
because of any investigation of the Airport or any cleanup, removal, or restoration mandated by a
federal, state, local agency or political subdivision.
13. If the demised premises are partially damaged by fire or other casualty which is not due to the
negligence or fault of Creamer, said premises shall be repaired with due diligence by City at City's
expense. If the damage is so extensive as to render such building untenantable, the rent payable
hereunder shall be proportionally paid up to the time of such damage and shall thenceforth cease
3
until such time as the premises shall be fully restored. If the demised premises are completely
destroyed, City may reconstruct the hangar at the City's own cost and the rent payable hereunder
shall be adjusted as set forth above, or City may, at its option, cancel this Lease Agreement, such
cancellation to be effective as of the date the hangar was destroyed, and the rent adjusted as set
forth above.
14. Creamer shall maintain in force during the Term and any extended term public liability and
property damage insurance in comprehensive form covering the Leased Premises as reasonably
may be required by the City and specified in the Airport Minimum Standards. The insurance shall
be issued by an insurer licensed to do business in the State of Arkansas.
Concurrent with the execution of this Agreement, Creamer shall provide proof of insurance
coverage by providing a Certificate of Lessee's Insurance coverage, a copy of the declarations
page on the insurance policy, and a copy of all endorsements. The Certificates of Insurance, or
endorsements attached thereto, shall provide that; (a) insurance coverage shall not be canceled,
changed in coverage, or reduced in limits without at least thirty (30) days prior written notice to
the City: (b) the City and the Airport and their trustees, agents, officers, servants, and employees
are named as additional insured: (c) the policy shall be considered primary as regards to any other
insurance coverage the City may possess, including any self -insured retention or deductible the
City may have, and any other insurance coverage the City may possess shall be considered excess
insurance only; (d) the limits of liability required therein are on an occurrence basis.
15. Creamer agrees to indemnify City against any and all liabilities, losses, suits, claims,
judgments, fines, penalties, demands or expenses, including all reasonable costs for investigation
and defense thereof, (including but not limited to attorney's fees, court costs, and expert fees, for
injuries to persons or damage to property caused by Creamer use or occupancy of the Leased
Premises; provided, however, that Creamer shall not be liable for any injury, damage or loss arising
from the negligence of City or its agents or employees; and provided further, that each party shall
give prompt and timely notice of any claim made or suit instituted which in any way directly or
indirectly affects or might affect either party, and each party shall have the right to compromise
and defend the same to the extent of its own interest. This clause shall not be construed to waive
that tort immunity as set forth under Arkansas Law.
16. Creamer agrees that it will not discriminate by segregation or otherwise against any person or
persons because of race, creed, color, religion, national origin, sex, marital status, or handicap in
the furnishing, or by refusing to furnish, to such persons the use of any facility, including any and
all services, privileges, accommodations, and activities provided thereby. Nothing herein shall
require the furnishing to the general public of the use of any facility customarily furnished by the
City solely to tenants, their employees, customers, patients, client, guests, and invites.
17. Assigning, Subletting and Encumbering. Creamer shall not assign this Lease Agreement in
whole or in part, nor sublease all or any part of the Leased Premises, nor permit other persons to
occupy said Leased Premises or any part thereof, not grant any license or concession for all or any
part of said Leased Premises, without the prior written consent of the City, which consent shall not
be unreasonably withheld. Any consent by the City to an assignment or subletting of this Lease
4
Agreement shall not constitute a waiver of the necessity of obtaining that consent as to any
subsequent assignment. Any assignment for the benefit of Creamer's creditors or otherwise by
operation of law shall not be effective to transfer or assign Creamer's interest under this Lease
Agreement unless the City shall have first consented thereto in writing. Neither Creamer's interest
in this Lease Agreement, nor any estate created hereby in Creamer nor any interest herein or
therein, shall pass to any trustee or receiver or assignee for the benefit of creditors or otherwise by
operation of law except as may specifically be provided in the Bankruptcy Code. If any of the
corporate shares of stock of Creamer are transferred, or if any partnership interests of Creamer are
transferred, by sale, assignment, bequest, inheritance, operation of law, or otherwise, so as to result
in a change of the control, assets, value, ownership, or structure of Creamer, same shall be deemed
an assignment for the purposes of this Section 17 and shall require the City's prior consent, and
Creamer shall notify the Airport Director of any such change or proposed change.
18. On the expiration or other termination of this Lease Agreement, Creamer's right to use the
demised premises shall cease, and Creamer shall vacate the premises without unreasonable delay.
All fixtures and permanent improvements, including those installed by Creamer, shall be
considered the property of the City; however, any equipment used, installed, erected, or placed by
Creamer in, on, or about the premises leased hereunder for Creamer's aeronautical business
activities shall be deemed to be personal property and shall remain the property of Creamer.
Creamer shall have the right at any time during the Term of this Lease Agreement, or any renewal
or extension hereof, and for an additional period of fourteen (14) days after the expiration or other
termination of this Lease Agreement, to remove any or all of such property, subject, however, to
Creamer's obligation to repair all damage, if any, resulting from such removal. Any and all
property not removed by Creamer prior to the expiration of the aforesaid fourteen (14) day period
shall thereupon become a part of the land on which it is located and title hereto shall thereupon
vest in City.
19. City may enter the premises leased to Creamer at any reasonable time, with reasonable advance
notice if possible, for any purpose necessary or incidental to the performance of its obligations or
Creamer's obligations hereunder.
20. Creamer shall maintain the demised premises in a clean and orderly fashion at all times.
21. Creamer shall not start or operate aircraft engines within the aircraft hangar leased hereby and
shall not allow such operations by any other person.
22. Creamer agrees that habitation of the hangar building or offices as a residence is prohibited.
23. Any notice or consent required by this Agreement shall be sufficient if sent by Certified Mail,
return receipt requested, postage paid, or emailed, to the following address:
CITY OF FAYETTEVILLE
Airport Administration Office
4500 S. School Ave., Suite F
Fayetteville, AR 72701
CREAMER PILOT SERVICES, LLC
c/o Lance Creamer
4500 S School Ave Ste. M
Fayetteville, AR 72701
5
Email: jrabren&fayetteville-ar.jzov Email: lance@iettaircraft.com
With a copy to: ahutchinson@ahlawgroup.com
24. This Lease Agreement shall be construed under the laws of the State of Arkansas.
25. All the covenants, conditions, and provisions under this Lease Agreement shall extend to and
bind the legal representative, successors, and assigns of the respective parties hereof.
26. No discounts for fuel are associated with this Lease Agreement. The Airport may offer fair
and reasonable discounted fuel rates to Creamer for planes housed in this hangar in accordance
with standard practice and published rate structures. This provision does not apply to the following
aircraft owned by Creamer Pilot Services, LLC as identified by their tail numbers: N45JA,
N145JA, N232PH, N46MW, N561JA, and N440JA, or similar replacement aircraft, as approved
in writing by the Airport Director, which approval shall not be unreasonably withheld. Fuel rates
for aircraft with these tail numbers, and for any replacement aircraft, will be governed by the
parties' current ground lease at 4560 S. School Avenue.
IN WITNESS WHEREOF, the parties have executed this Lease Agreement on the day and year
first above written.
Creamer Pilot Services, LLC
By:
Lance Creamer
M 4.mbe-�
Title
CITY OF FAYETTEVILLE, ARKANSAS
Molly Rawn, Mayor
ATTEST
�IY
By:
Kara Paxton, City Clerk Treasurer
re
Exhibit A
--I-