HomeMy WebLinkAbout210-25 RESOLUTIONPage 1
113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Resolution: 210-25
File Number: 2025-1668
A RESOLUTION TO APPROVE A THREE-YEAR LEASE AGREEMENT WITH SKYDIVE
FAYETTEVILLE, LLC FOR APPROXIMATELY 833 SQUARE FEET OF OFFICE SPACE IN THE
AIRPORT TERMINAL BUILDING FOR $1,041.25 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 Skydive Fayetteville, LLC for approximately 833 square feet of office space in the airport terminal building for
$1,041.25 per month for the first year, $1,072.49 for year two and $1,104.66 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
2025-1668
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 - Skydive Fayetteville LLC
RECOMMENDATION:
The Aviation Division requests a resolution to approve and allow the Mayor to sign a lease agreement between
the City of Fayetteville and Skydive Fayetteville, LLC for approximately 833 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:
Skydive Fayetteville is currently a tenant of Drake Field. They offer skydiving instruction and tandem skydiving
for the public. To meet growing demand, they are in need of a larger office space.
BUDGET/STAFF IMPACT:
Skydive Fayetteville will pay $1,041.25 for approximately 833 square feet of office space. The lease includes a
3% annual adjustment, reflected as $1,072.49 for year two and $1,104.66 for year three.
ATTACHMENTS: 3. Staff Review Form, 4. Skydive Lease Signed
Page 1
City of Fayetteville, Arkansas
Legislation Text
113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
File #: 2025-1668
A RESOLUTION TO APPROVE A THREE-YEAR LEASE AGREEMENT WITH SKYDIVE
FAYETTEVILLE, LLC FOR APPROXIMATELY 833 SQUARE FEET OF OFFICE SPACE IN
THE AIRPORT TERMINAL BUILDING FOR $1,041.25 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 Skydive Fayetteville, LLC for approximately 833 square feet of office space in the
airport terminal building for $1,041.25 per month for the first year, $1,072.49 for year two and
$1,104.66 for year three.
City of Fayetteville Staff Review Form
2025-1668
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 Skydive Fayetteville, LLC for approximately 833 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:
16 September
16 September
September 16
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: $104125
• Year 2: $1072.49
• Year 3 $1104.66
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 tills
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,
I ncluding additional phone or Internet services.
H. Improvements: Lessee shall bear the cost of all improvements or additions made to the interior
or exterior of the huilding 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, kvhose consent will not be unreasonahly withheld. Anv signs or antennas to be crected
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 Citv shall be responsible only for major maintenance of- the existing
equipment i.e_ i-eplacenzent of heating unit and other equipment in place in the 1-aellity which
includes_ roof hangar door motors_ exterior walls, exterior plumhing, 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 hUdding, thereof shall become detective or damaged at any time during the term due to
ordinary wear and tear and not due to neghgence 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. Ifthe 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 he 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 l,ederal Aviation Administration with respect to aircraft operations at
the Airport, and provided further. such Ordinances and Re<gulations 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.
"Hie Alininnim Stan(lar(ls fior Fi�yetteville Evectitive Airport, Drttke Field" herein referred to as
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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 vvav 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.
I2. Hazardous Substance: Lessee shall not cause or permit anv Hazardous Substance to be
used or stored on or in the Leased Premises Without first obtaining the City-s vvritten consent. If
hazardous Substances are used. stored_ generated. or disposed of on or in the Leased Premises or
if the Leased Premises or anv other Airport property becomes contaminated in any manner for
which Lessee is responsible or legall\ liable, Lessee shall indemnify and bold 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 attorneys 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 anv 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 f-orm as reasonably may be required by the City and
specified in the Airport Mlninlum 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 proofof 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 Iimits vvithout 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 he considered primary as regards to anv 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 fiability required therein are on an occurrence basis.
14. Lessee agrees to indemnify City against any and all Iiabilities, losses. suits, claims, judgments,
fines, penalties, demands or expenses -including all reasonable costs for investigation and defense
thereof, (including but not limited to attorneys fees- court costs_ and expert fees, for injuries to
persons or darnage 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 anv claim made or suit instituted which in any way directly or indirectly affects
or r-nioht 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 vvaive that tort immrrnity as
set forth under Arkansas Law.
15. Lessee aurees 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. Nothin- herein shall
require the furnishing to the general public ofthe use ofanv facility customarily furnished by the
City solely to tenants, their employees, customers, patients- chent, guests, and invites.
16_ Assigning- SUblettina, and Encumbering. Lessee shall not assign this Agreement in whole or
in part, nor sublease alI or any part of the Leased Premises_ nor permit other persons to occupy
said Leased Premises or any part thereof, not (rant anv 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 withbeld_ Any consent by the Airport to an assignment or subletting of
this A4(areement 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 Lessees interest under this Agreement
unless the Air -port 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
anv trustee or receiver or assignee for the benefit of creditors or otherwise by operation of la\,v
except as may specifically be provided in the Bankruptcy Code. If anv oftlic 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 he deemed an assignment for
the purposes of this Section 17 and shall require the Airport's prior consent, and Lessee shall notify
the Airport ofanv such change or proposed change.
17. On the expiration or other termination of -this lease Lessee's right to use the dernised 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
ri�,,ht at anv time durin(Y the term of this agreement_ or anv renewal or extension hereof- and for an
additional period of fourteen (14) days after the expiration or other termination of, agreement.
to remove anv or all of such property- subject, however_ to Lessee's obligation to repair all damage.
if anv, resulting from such removal. Any and all propert}, not removed b_y 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,
is. City may enter the premises leased to Lessee at any reasonable time for any purpose necessary
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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 tunes.
20. Lessee -agrees that habitation of the hanLlar building or offices as a residence is prohibited.
22. Anv notice or consent required by this Agreement shall be sufficient if sent by Certified Mail
return receipt requested, postage paid, to the follotiwin- address:
CITY OF FAYETTEVILLE AVIATION LESSEE
Airport Administration Office 4500 School Ave.
4500 S. School Avenue_ Suite F SIT G
Fayetteville, Arkansas 72701 Favetteville, AR 72701
Phone: (479) 718 -7642 Phone: (479) 530-5241
24. This agreement shall be construed under the laws of the State of Arkansas.
25_ All the covenants, conditions, and provisions ender this agreement steall extend to and bind
the legal representative. successors, and assigns of the respective parties hereof.
IN `N ITNESS NNTIE REOF_ the parties have executed this Lease on the day and year first above
written.
CITY 01 FA N ' E] "IT V I L L E, AIZKANSAS
Bv_
Mollv Rams, Mavor
ATTEST
By V
Kara Paxton, City Clerk Treasurer
LESSEE
Bv:
C' . - i e, ,—
Title
5
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Included in this aoreement are the iolIowin1:
C'onlerence Room