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HomeMy WebLinkAbout209-25 RESOLUTIONPage 1 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 209-25 File Number: 2025-1667 A RESOLUTION TO APPROVE A THREE-YEAR LEASE AGREEMENT WITH ELITE AIRCRAFT SERVICES LLC, D/B/A EAS FLIGHT TRAINING FOR APPROXIMATELY 1,128 SQUARE FEET OF OFFICE SPACE IN THE AIRPORT TERMINAL BUILDING FOR $1,200.00 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 three-year lease agreement with Elite Aircraft Services LLC, d/b/a EAS Flight Training for approximately 1,128 square feet of office space in the airport terminal building for $1,200.00 per month for the first year, $1,300.00 for year two and $1,400.00 for year three. PASSED and APPROVED on September 16, 2025 Approved: _______________________________ Molly Rawn, Mayor Attest: _______________________________ Kara Paxton, City Clerk Treasurer Mailing address: 113 W. Mountain Street Fayetteville, AR 72701 www.fayetteville-ar.gov CITY COUNCIL MEMO 2025-1667 MEETING OF SEPTEMBER 16, 2025 TO: Mayor Rawn and City Council THRU: Chris Brown, Public Works Director Terry Gulley, Asst Public Works Director - Ops Keith Macedo, Chief of Staff FROM: Jared Rabren, Airport Director SUBJECT: Airport Office Lease - EAS Flight Training RECOMMENDATION: The Aviation Division requests a resolution to approve and allow the Mayor to sign a lease agreement between the City of Fayetteville and Elite Aircraft Services LLC, DBA: EAS Flight Training for approximately 1,128 square feet of office space in the Terminal Building located at 4500 S School Ave, pursuant to RFP 25-12. This is a three-year lease agreement. BACKGROUND: Earlier this year, the Aviation Division relocated from their offices on the east side of the terminal building. Due to multiple interested parties, an RFP was created for the former Aviation Division offices. This lease represents one of two parties that are being jointly awarded a portion of those offices. DISCUSSION: EAS Flight Training is currently a tenant of Drake Field. They offer flight training to the public with a fleet of aircraft stationed across multiple airports. To meet growing demand, they are in need of a larger office space. BUDGET/STAFF IMPACT: EAS will pay $1,200 per month for approximately 1,128 square feet of office space. The lease includes a yearly adjustment, reflected as $1,300 for year two and $1,400 for year three. ATTACHMENTS: 3. Staff Review Form, 4. EAS Lease Signed Page 1 City of Fayetteville, Arkansas Legislation Text 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 File #: 2025-1667 A RESOLUTION TO APPROVE A THREE-YEAR LEASE AGREEMENT WITH ELITE AIRCRAFT SERVICES LLC, D/B/A EAS FLIGHT TRAINING FOR APPROXIMATELY 1,128 SQUARE FEET OF OFFICE SPACE IN THE AIRPORT TERMINAL BUILDING FOR $1,200.00 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 three-year lease agreement with Elite Aircraft Services LLC, d/b/a EAS Flight Training for approximately 1,128 square feet of office space in the airport terminal building for $1,200.00 per month for the first year, $1,300.00 for year two and $1,400.00 for year three. City of Fayetteville Staff Review Form 2025-1667 Item ID 9/16/2025 City Council Meeting Date - Agenda Item Only N/A for Non-Agenda Item Jared Rabren 8/25/2025 AIRPORT SERVICES (760) Submitted By 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 Elite Aircraft Services LLC, DBA: EAS Flight Training for approximately 1,128 square feet of office space in the Terminal Building located at 4500 S School Ave. This is a three year lease agreement. Budget Impact: Account Number Fund Project Number Project Title Budgeted Item?No Total Amended Budget $- Expenses (Actual+Encum)$- Available Budget $- Does item have a direct cost?No Item Cost $- Is a Budget Adjustment attached?No Budget Adjustment $- Remaining Budget $- V20221130 Purchase Order Number:Previous Ordinance or Resolution # Change Order Number:Approval Date: Original Contract Number: Comments: 1 TERMINAL LEASE AGREEMENT This LEASE AGREEMENT made this ______ day of ___________________, 2025, by and between the City of Fayetteville, Arkansas, hereinafter called “City”, and Elite Aircraft Services LLC, DBA: EAS Flight Training, hereinafter called “Lessee.” WHEREAS, 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 office space at the Airport; and WHEREAS, Lessee desires to lease said office space, NOW, THEREFORE, the parties, in consideration of the mutual covenants contained herein, hereby agree as follows: 1. City leases Lessee, and Lessee leases from City, approximately 1128 sq. ft. of office space in the Terminal Building located at 4500 S. School Ave, Ste. E, Fayetteville, Arkansas. 2.Lessee 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. 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, passengers, guests, and other invitees. Such rights shall also extend to persons or organizations supplying materials or furnishing services to Lessee. 4. Term: Subject to earlier termination as hereinafter provided, the initial term of this agreement shall be for 3 years commencing on the __ _ day of , 2025, and ending on the day of , 2028. This Lease Agreement may be terminated by either party with a sixty (30) day written notice. 16 SeptemberSeptember 16 16 September 2 5. Rent: Lessee agrees to pay the City for the use of the premises, facilities, rights, and privileges granted hereunder the following amounts, which are adjusted beginning on the anniversary date of this Lease Agreement: • Year 1: $1200.00 • Year 2: $1300.00 • Year 3: $1400.00 6. City shall maintain and keep in good repair so much of the Airport premises as are not under the exclusive control of Lessee. Lessee shall, at the termination, surrender or forfeiture of this lease, return said premises in same or better condition premises were at the beginning of the lease, normal wear and tear excepted. 7. Lessee shall provide for and supply at its expense all janitor service with respect to the demised premises and shall pay for all utilities additional to those offered to the building in its entirety, including additional phone or internet services. 8. Improvements: Lessee 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 Lessee 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 facility 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 Lessee , or Lessee ‘s agents or invites, upon notice from Lessee, 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 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. 10. Lessee 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 agreement or the procedures prescribed or approved from time to time by the Federal Aviation Administration with respect to the operation of Lessee’ aircraft at the Airport. 3 “The Minimum Standards for Fayetteville Executive Airport, Drake Field” herein referred to as Airport Minimum Standards are made part of this lease by reference as if included word for word. 11. Lessee agrees that it shall use the premises for the implementation and conducting of an aeronautical business activity. Lessee agrees that it shall use the premises only for the storage of aeronautic 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. Lessee 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 Agreement. 12. Hazardous Substance: Lessee 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 Lessee is responsible or legally liable, Lessee 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 Lease 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 Lessee, Lessee agents, employees, and invitees. This indemnification includes, without limitation, all cost 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. Lessee shall maintain in force during the Term and any extended term public liability and property damage insurance in comprehensive form 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, Lessee 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. 14. Lessee agrees to indemnify City against any and all liabilities, losses, suits, claims, judgments, 4 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 Lessee use or occupancy of the lease premises; provided, however, that Lessee 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. 15. Lessee 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. 16. Assigning, Subletting and Encumbering. Lessee shall not assign this 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 Airport Manager, which consent shall not be unreasonably withheld. Any consent by the Airport to an assignment or subletting of this Agreement shall not constitute a waiver of the necessity of obtaining that consent as to any subsequent assignment. Any assignment for the benefit of Lessee’s creditors or otherwise by operation of law shall not be effective to transfer or assign Lessee’s interest under this Agreement unless the Airport shall have first consented thereto in writing. Neither Lessee’s interest in this Agreement, not any estate created hereby in Lessee 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 Lessee are transferred, or if any partnership interests of Lessee 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 Lessee, same shall be deemed an assignment for the purposes of this Section 17 and shall require the Airport’s prior consent, and Lessee shall notify the Airport of any such change or proposed change. 17. 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 the premises leased 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 fourteen (14) 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 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. 5 18. City may enter the premises leased to Lessee at any reasonable time for any purpose necessary or incidental to the performance of its obligations or Lessee’s obligations hereunder. 19. Lessee shall maintain the demised premises in a clean and orderly fashion at all times. 20. Lessee agrees that habitation of the hangar building or offices as a residence is prohibited. 22. 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: CITY OF FAYETTEVILLE LESSEE Airport Administration Office 4500 S. School Avenue, Suite F PO Box 230 Fayetteville, Arkansas 72701 Pierce City, MO 65723 Phone: (479) 718 -7642 Phone: (417) 236-4118 24. This agreement shall be construed under the laws of the State of Arkansas. 25. All the covenants, conditions, and provisions under this agreement shall extend to and bind the legal representative, successors, and assigns of the respective parties hereof. IN WITNESS WHEREOF, the parties have executed this Lease on the day and year first above written. CITY OF FAYETTEVILLE, ARKANSAS By:__________________________________ Molly Rawn, Mayor ATTEST By:__________________________________ Kara Paxton, City Clerk Treasurer LESSEE By:__________________________________ _____________________________________ Title Member 6 Included in this agreement are the following: • Office 1 • Office 2 • Lobby Area • Storage