HomeMy WebLinkAbout88-97 RESOLUTION RESOLUTION NO. 8 8-9 7 S CA N N E
A RESOLUTION APPROVING A LEASE AGREEMENT WITH
AERO TECH, INC. d/b/a FAYETTEVILLE AIR SERVICE TO
PROVIDE FIXED BASED OPERATOR'S SERVICES FOR THE
REFUELING FARM AT THE FAYETTEVILLE MUNICIPAL
AIRPORT.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE,
ARKANSAS:
Section 1. That the City Council hereby approves the lease agreement with Aero Tech,
Inc. d/b/a Fayetteville Air Service to provide fixed based operator's services for the refueling farm
at the Fayetteville Municipal Airport. A copy of the lease agreement is attached hereto marked
Exhibit "A" and made a part hereof.
PASSED AND APPROVED this 16th day of September , 1997.
�7 t r r t /I,
/' APPROVED:
U
�y< yea^
It ..4it"` By:
•1 r, . red Hanna, Mayor
Ii. :
ATTEST.
By:
Traci Paul, City Clerk
EXHIBIT A
LEASE AGREEMENT
BY AND BETWEEN
Fayetteville Municipal Airport
AND
Aerotech Services, Inc.
dba
Fayetteville Air Service
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INDEX
ARTICLE I
Definitions
Page
1 . 1 Definitions 1
1 .2 Rules of Construction 1
ARTICLE II
Term
2 . 1 Term of Agreement 2
2 . 2 Options to Extend 3
2 . 3 Surrender of Possession: Holding Over 3
ARTICLE III
Lessor' s Grants; Reservations
3 . 1 Lease 3
3 . 2 Avigation Easement 3
3 . 3 Reservation of Mineral Rights 4
3 . 4 Title to Existing Improvements 4
3 . 5 Quiet Enjoyment
4
3 . 6 No Joint Venture or Partnership 4
3 . 7 Termination of Agreement for Airport Purposes 4
ARTICLE IV
Use
4 . 1 Use of the Leased Premises 5
4 . 2 General Use of the Airport 5
4 . 3 Security Plan 5
4 .4 Limitations on Signage 5
ARTICLE V
Improvements to the Premises
5 . 1 Title 6
5 . 2 Plans and Specifications 6
5 . 3 Effect of New Improvements 6
5 .4 Removal and Ownership of Airport Structures on
Leased Premise 6
5 . 5 Security Line Fencing, Walls, Doors and Gates 6
5 . 6 Inspection 7
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ARTICLE VI
Rentals, Fees and Chartres
6 . 1 Rental Charge 7
6 .2 Landlord' s Lien 7
6 . 3 Place of Payments 8
6 .4 Delinquencies 8
6 . 5 Utility Services 8
6 . 6 Landing Fees 8
ARTICLE VII
Maintenance and Care of Leased Premises
7 . 1 Maintenance and Care of Leased Premises 8
ARTICLE VIII
Indemnity and Insurance
8 . 1 Indemnity 10
8 . 2 Insurance 10
ARTICLE IX
Fuel Farm
9 . 1 Fuel Farm 11
9 .2 Fuel Flowage Fees 11
9 . 4 Fuel Audits 11
ARTICLE X
Complaints
10 . 1 Customer Complaints 12
10 . 2 Grievance Committee 12
ARTICLE XI
Indemnity - Hazardous Substance
11 . 1 Indemnity - Hazardous Substance 12
ARTICLE XII
Governmental Requirements
12 . 1 Governmental Requirements - General 13
12 .2 No Liability for Exercise of Powers 14
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12 . 3 Nondiscrimination 14
12 . 4 Taxes and Other Governmental Charges 15
12 . 5 Domestication 15
ARTICLE XIII
Events of Default
13 . 1 Events of Default Defined 15
13 .2 Remedies upon Lessee' s Default 16
13 . 3 Non-Waiver 18
13 . 4 Events of Default by Airport, Lessee' s Remedies 18
13 . 5 Condemnation 18
ARTICLE XIV
Transfer of Interests
14 . 1 Assignment by the Airport 19
14 . 2 Assigning, Subletting and Encumbering 19
ARTICLE XV
Miscellaneous
15 . 1 Notices 19
15 . 2 Severability 20
15 . 3 Entire Agreement; Modification 20
15 .4 Execution of Counterparts 20
15 . 5 Effect of Sundays and Legal Holidays 21
15 . 6 Descriptive Headings; Table of Contents 21
15 . 7 Choice of Law; Enforcement 21
15 . 8 Force Majeure 21
15 .9 Consent Not Unreasonably Withheld 21
15 . 10 Recovery of Attorney Fees and Costs 21
15 . 11 Binding Effect 21
Signatures 22
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LEASE AGREEMENT
This Agreement made and entered into at Fayetteville, Arkansas
the 1st day of September 1997, by and between the Fayetteville
Municipal Airport, hereinafter referred to as the "Airport" , and
Aero Tech Services, Inc. , dba Fayetteville Air Service, hereinafter
referred to as "Lessee" , with a principal place of business located
at the Airport.
NOW, THEREFORE, the parties hereto, for and in consideration
of the rents, covenants and agreements contained herein, agree as
follows :
ARTICLE I
Definitions
Section 1 . 1 Definitions . Throughout this Agreement, the
following words shall have the following meanings, respectively,
unless the context clearly shall indicate some other meaning:
a. Agreement means this Lease Agreement between the Airport
and Lessee;
b. Airport means the Fayetteville Municipal Airport;
c. City means the City of Fayetteville, Arkansas;
d. FAA means the Federal Aviation Administration of the
United States, or any federal agency succeeding to its
jurisdiction or function;
e. Governmental Requirements means all federal, state and
local laws, rules, regulations, security plans, and
rulings, including all amendments, now in effect or
hereinafter enacted;
f . Leased Premises means the area described and illustrated
on Exhibit "A" ; and
g. Term means the period of time that this agreement shall
be in effect, as set forth in Section 2 . 1 (Term of
Agreement) .
H. Fuel Farm means fuel storage system.
Section 1.2 Rules of Construction. Throughout this Agreement,
unless the context clearly shall require otherwise;
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a. The singular includes the plural and vice versa;
b. The words "and" and "or" shall be both conjunctive and
disjunctive;
c. The words "all" and "any" mean "any and all" ;
d. The word "including" means "including without
limitation" ;
e. The word "he" or any other masculine pronoun includes any
individual regardless of sex;
f . Reference to any exhibits shall mean exhibits attached to
this Agreement which shall be deemed incorporated by
reference; and
g. Reference to articles or sections respectively shall mean
articles or sections of this Agreement.
ARTICLE II
Term
Section 2 . 1 Term of Agreement. The Term of this Agreement
shall be for a period of one year commencing on the date of this
Agreement and expiring on August 31, 1998 , unless otherwise
terminated or canceled. Provided, as of the effective date of
termination or cancellation of this Agreement, all obligations
which have been incurred by Lessee, or with respect to which Lessee
shall be in default, shall survive such termination or
cancellation.
Section 2 . 2 Options to Extend. In addition to any other
rights it may have under this Agreement, if and upon the conditions
that Lessee shall have complied with and conformed to conditions,
covenants and terms of this Agreement to be observed and performed
by it without any uncorrected default having occurred under this
agreement during the Lease term; Lessee shall have and hereby is
granted options to extend the lease term upon expiration thereof,
Seon Ptember 1, 1998 for 3 renewal periods of 3 years,
which options, if exercised, will cause this lease to terminate on
August 31, 2007 Such renewal options may be exercised by notice
in writing to the Airport at least one hundred twenty (120) days
prior to the expiration of the initial Term or prior period. In
the event such renewal options are exercised, all terms and
conditions then applicable to this Agreement shall remain in effect
during the extended Term hereof . Prior to each renewal there shall
be a performance review conducted by the Airport Board. The format
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of this review will be to hear a report from:
The Airport Manager regarding the performance of FAS
under the terms of this agreement.
The Airport Grievance Committee which will include an
accounting by nature and number of the complaints brought
to the committee including details of any unresolved
complaints . See Section 10 . 2 Airport Grievance
Committee.
In this review The Airport Board will consider only specific
compliance with the terms of this agreement and the provisions set
out in the Airport Minimum Standards . Further, no consideration
will be given to any customer complaint that has not been heard by
the Airport Grievance Committee and remains unresolved following
consideration and mediation efforts by the committee.
Following each renewal review, the Airport Board shall forward to
the City Council its recommendation to continue or to terminate the
agreement . Because the recommendation forwarded to the City
Council will have considerable bearing on the renewal of this
agreement and in order to establish fair and measurable performance
criteria the following performance standards are established:
Airport Minimum Standards - Lessee will comply with all items
set out on these standards and any failure to do so without
correction as provided in the standards shall be considered
grounds for termination of the agreement.
In addition to the Minimum Standards the following are made a part
of this agreement:
Response to customer requests - Lessee will establish
appropriate communication links in order to assure that
customers are able to contact service personnel . During the
hours of 8 : 00 a.m. to 5 : 00 p.m. customer service personnel
will be available by telephone and by radio. More than an
average of four validated complaints per month over a twelve
month period of failure to answer radio or telephone calls
will be considered failure to perform under this agreement.
Person in charge: There will be a person in charge at all
times. Generally, this will be the designated manager of the
fixed base operation. However, during times when the manager
is not present or otherwise unable to perform the duties of
the person in charge another person will be designated and
will have the responsibility of the operation of the FIXED
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BASE OPERATION until such time as the designated manager can
again assume this responsibility.
Public relations training for personnel: Lessee will strive to
provide prompt and courteous service to all potential
customers through an active customer response training program
for all employees . In this training employees will be
instructed in generally accepted courtesy and proactive
customer response methods .
Fuel delivery: For each delivery of fuel to an aircraft Lessee
will record the time the request was received and the time the
delivery began. Fayetteville Air Service will make a diligent
and consistent effort to begin fuel delivery within fifteen
minutes of the time that fuel is requested. Fuel response
time of more than thirty minutes for more than 10% of the fuel
requests in any continuous sixty day period shall be
considered failure to provide adequate fuel delivery service.
Maintenance: For each maintenance operation performed Lessee
will record the date and time the aircraft was delivered to
Fayetteville Air Service for service, the promised completion
time and the actual completion time. Each time Fayetteville
Air Service accepts an aircraft to perform maintenance through
any of its maintenance and service capabilities the owner, or
person making an agreement on behalf of the owner, shall be
provided with a copy of a written service order which sets out
the scope of the work proposed and a specific time when the
work is to be completed. This work order will provide the
owner with a general estimate of the time and cost involved
for the work proposed. In event that circumstances create an
increase of more than 20 percent of the cost estimate or any
change in the promised completion date and time, the owner
will be notified before work continues . Should a dispute
between an aircraft owner and Lessee arise, Lessee will make
every effort to resolve the dispute. If resolution is not
possible, Lessee will ask the owner to file a complaint with
the Grievance Committee so that mediation can be attempted.
Should a complaint be made to the Airport Manager, he will
notify Lessee and the Grievance Committee in the same manner
as set out in Section 10 . 1 below.
Section 2 . 3 Surrender of Possession: Holding Over. Except as
otherwise expressly provided in this Agreement, at the expiration
or sooner termination of the Agreement, Lessee agrees to surrender
possession of Leased Premises peacefully and promptly to the
Airport in as good condition as existed at the effective date of
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this Agreement, ordinary wear, tear and obsolescence only excepted.
If Lessee shall hold over after the termination of this
Agreement, the Airport may allow Lessee to remain on the premises
as a month-to-month tenant at will . During such tenancy, Lessee
shall pay to the Airport the rentals, fees and charges set by the
Airport, and Lessee shall be bound by all of the additional
provisions of this Agreement insofar as they may be pertinent.
ARTICLE III
Lessor' s Grants; Reservations
Section 3 . 1 Lease. The Airport hereby offers and leases to
Lessee, and Lessee hereby accepts and leases from the Airport, the
Leased Premises for the Term of this Agreement, subject to the
provisions and conditions herein set forth. Lessee accepts the
Leased Premises in the condition in which they exist at the
commencement of this Agreement.
Section 3 . 2 Avigation Easement. The Airport reserves the
right to take such action as may be necessary to protect the aerial
approaches of the Airport against obstruction in accordance with
applicable standards or requirements, together with the right to
prevent Lessee or any other person from erecting or permitting to
be erected any equipment, building or other structure on the
Airport (other than any buildings to be constructed in compliance
with and pursuant to the plans and specifications referred to
herein) , which would conflict with such standards and requirements
now in effect or hereinafter enacted. The Airport also reserves
for itself, the City and their licensees, an avigation easement in,
over and across the air space above the Leased Premises and the
unrestricted right to subject the Leased Premises to such Airport
noise and vibration as may result from the flight of aircraft, warm
up of engines, testing of motors and other aviation related
activities .
Section 3 . 3 Reservation of Mineral Rights . The Airport and
City reserve all right, title and interest they may have in and to
all minerals in, on or under the Leased Premises. Lessee shall not
engage in any mining activities in, on or under the Leased Premises
during the Term of this Agreement. "Minerals" as used herein shall
mean all mineral substances and deposits whether solid, gaseous, or
liquid.
Section 3 . 4 Title to Existing Improvements . Title to all
improvements which have been or will be made to the Leased Premises
as of the execution hereof shall be and remain in the Airport
during the Term and any extended term of this Agreement.
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Section 3 . 5 Ouiet Enjoyment. Unless Lessee shall have
defaulted in its obligations hereunder, it shall have quiet
enjoyment of the Leased Premises . HOWEVER, THE Airport, AND ITS
AUTHORIZED REPRESENTATIVES, SHALL HAVE THE RIGHT TO INSPECT THE
LEASED PREMISES DURING ALL REASONABLE HOURS .
Section 3 . 6 No Joint Venture or Partnership. This Agreement
shall not be deemed or construed (a) to create any relationship
of joint venture or partnership between the parties, (b) to give
the Airport any interest in the business of Lessee, or [c] to
grant to Lessee any powers as an agent or representative of the
City or Airport for any purpose or to bind the City or the
Airport. Lessee shall be an independent contractor owning and
operating its business as herein described.
Section 3 .7 Termination of Agreement for Airport Purposes .
Lessee agrees and understands that, by reason of the broad public
interest in the efficient maintenance, operation and development
of the Airport, the Airport hereby expressly reserves the right
to terminate this Agreement upon a determination by the Airport
that the Leased Premises are needed for Airport construction or
development.
In the event the Airport elects to terminate the Agreement
for the reasons stated in this section, Lessee shall surrender
the Leased Premises to the Airport within ninety (90) days from
receipt of the Airport' s written notice of its intent to
terminate the Agreement and acquire Lessee' s interest in the
Leased Premises . The Airport shall use its best efforts to
provide Lessee with comparable replacement premises at the
Airport at rates not to exceed those provided in this Agreement.
If only a portion of the Leased Premises is required, the Airport
may terminate Lessee' s rights to the portion of the Leased
Premises required, in the manner described in this section. If
the Airport provides replacement premises at the Airport, the
Airport shall pay the reasonable expenses incurred by Lessee in
relocating to the replacement premises . Reasonable expenses are
those expenses that are necessary to physically move and relocate
the Lessee to new premises on the Airport. Reasonable expenses
are those expenses that are necessary and for which the
applicable governmental procurement laws, regulations and
procedures have been followed.
The parties further agree that the market rent of the
replacement premises shall be deemed to be equivalent to the
contract rent specified in this Agreement, throughout the Term or
any extended term.
Section 3 . 8 Airport Minimum Standards . The Minimum Standards
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for Operation and Commercial Aeronautical Activities herein
referred to as Airport Minimum Standards at Fayetteville
Municipal Airport are made part of this lease by reference as if
included word for word.
ARTICLE IV
Use
Section 4 . 1 Use of the Leased Premises . Lessee shall be
entitled to use the Leased Premises for all lawful purposes related
to the activities which Lessee is allowed to conduct under this
Agreement. Lessee, its representatives, agents, invitees and
licensees, shall have the right of ingress and egress to and from
the Leased Premises . The Airport reserves the right to close any
means of ingress and egress, so long as other reasonable means of
ingress and egress to the Leased Premises are available to Lessee.
Section 4 .2 General Use of the Airport. Subject to FAA and
Airport security and Airport operational rules, Airport Minimum
Standards, regulations and procedures, Lessee shall be entitled to
use, on a nonexclusive basis, public areas of Airport and runways,
taxiways, aprons, lighting navigation aids, and other facilities
necessary for the operation of aircraft.
Section 4 . 3 Security Plan. Lessee shall require all persons
entering the Leased Premises to comply with the Airport Security
Plan and the Airport rules and regulations established by the
Airport and the FAA as they currently exist, and as may be amended.
Section 4 .4 Limitations on Signage. Without the prior written
approval of the Airport, Lessee shall not erect, maintain or
display signs of advertising or graphics at or on the exterior
parts of the Leased Premises, or in or on the Leased Premises, so
as to be visible outside the Leased Premises . Exterior signs
affecting public safety and security shall be in accordance with
established City of Fayetteville Standards .
ARTICLE V
Improvements to the Premises
Section 5 . 1 Title. Title to all improvements and fixtures
constructed directly on the Leased Premises by Lessee shall be in
the Airport.
Section 5 . 2 Plans and Specifications . All plans and
specifications for new improvements on the Leased Premises shall be
prepared by Lessee in compliance with all Governmental
Requirements, City of Fayetteville (Airport Board, City
Inspections, City Planning, City Engineering, etc. ) and FAA as
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applicable. Lessee shall furnish to the Airport copies of permits
and licenses needed for construction. Construction plans and
specifications shall be submitted by Lessee to the Airport for
approval . Thereafter, the Airport shall have forty-five (45) days
after receipt within which to approve the plans and specifications,
or to notify Lessee of any objections thereto. Each objection and
the grounds therefor shall be stated separately. Lessee shall have
a reasonable time thereafter within which to make any revision to
remove the Airport' s objections, the Airport shall have sixty (60)
days within which to approve or reject Lessee' s revised proposal .
After the Airport' s approval of the final plans and specifications ,
Lessee may proceed with construction. Construction shall be
substantially in accordance with the approved plans and
specifications . Upon completion of construction, Lessee shall
furnish to the Airport one complete set of reproducible "as built"
plans and specifications .
Section 5 . 3 Effect of New Improvements . Construction of new
improvements on the Leased Premises shall not be permitted to
adversely affect existing improvements, other Airport tenants,
Airport property or other property contiguous to the Airport.
Section 5 .4 Removal and Ownership of Airport Structures on
Leased Premises . Lessee may not remove or otherwise alter any
improvement to the Leased Premises owned by the City or the Airport
without prior written consent of the Airport. Lessee may request
permission in writing to remove or alter such improvements. Within
forty-five (45) days of receipt of such written request, the
Airport shall notify Lessee of either the rejection or approval of
the request. Ownership and title to all improvements removed from
or altered on the Leased Premises shall remain in the Airport
unless relinquished in writing by the Airport. Removal, storage,
maintenance, transportation and disposal of any improvements shall
be made at Lessee' s sole cost.
Section 5 . 5 Security Line Fencing, walls, Doors and Gates .
The Airport shall maintain any FAA security line located on the
Leased Premises, including but not limited to fences, walls, doors
and gates . If required, Airport shall provide all materials and
labor, at its sole cost, necessary to comply with the Airport
security requirements . If required, Airport shall pay for the cost
of all points of entry through the security line required for
access by Lessee and its employees, business invites or others from
the land side of the Airport to the aircraft operations area of the
Airport. At all security gates on the Leased Premises, Airport
shall install : (a) communication devices as approved by the Airport
which shall be connected to the phone system; and (b) an entry
system as approved by the Airport using key cards issued by the
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Airport pursuant to an Airport security requirements submitted to
and approved by the FAA. Lessee will reimburse Airport for cost of
said key cards .
Section 5 . 6 Inspection. The Airport and its authorized
representatives shall have the right to inspect the Leased Premises
during all reasonable hours .
ARTICLE VI
Rentals, Fees and Charges
Section 6 . 1 Rental Charge. For the period beginning from the
date of this Agreement through August 31, 1998 , the Lessee shall
pay annual rental for the area described in Exhibit A at the rate
of $18, 859 .20, annually payable monthly, in advance at the rate of
$1, 571 . 60 per month on the 20th day of each month. This rental
charge is in addition to the rental charges set out in and Section
9 . 1 .
If the Lease has not expired or been terminated, the annual
rental set out in this section and Section 9 . 1 shall be increased
by three and one half percent (3 . 5%) of the prior year' s rental
charge. Such new amount shall be paid in twelve (12) equal monthly
installments during each lease year.
Section 6 . 2 Landlord' s Lien. If the Lessee defaults on this
Agreement, the Airport shall have a lien on all furnishings,
equipment, fixtures and personal property of any kind, and the
equity of Lessee therein. The lien is granted for the purpose of
securing the payment of rentals, fees, charges, taxes, assessments,
liens , penalties and damages herein covenanted to be paid by
Lessee, and for the purpose of securing the performance, all and
singular, of the covenants, conditions and obligations of this
Agreement to be performed and observed by Lessee, subject only to
any mortgages to which the Airport shall consent . This lien shall
be in addition to all rights of landlord given under the laws of
the State of Arkansas . If the Lessee remains current in its rental
obligations and otherwise complies with the terms of this
agreement, the Airport agrees to subordinate its lien to Lessee' s
creditors .
Section 6 . 3 Place of Payments . All sums payable by Lessee
hereunder shall be delivered to:
Fayetteville Municipal Airport
4500 S. School Ave. , Suite F
Fayetteville, AR 72701
Section 6 . 4 Delinquencies . In addition to any remedy
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available to it hereunder, the Airport may impose as additional
rental a delinquency charge on all overdue payments, at the maximum
rate allowed by law.
Section 6 . 5 Utility Services . At its own expense, Lessee
shall be responsible for the installation, relocation, modification
and maintenance of all utility services to or on the Leased
Premises . This shall include any janitor services, power, gas,
telephone, electricity, heating, water, sewer, storm water and all
other utility services not enumerated specifically. Lessee shall
pay as the same becomes due, all utility and other charges incurred
in the operation, maintenance, use, occupancy, repair and upkeep of
the Leased Premises and the improvements located thereon.
Section 6 . 6 Landing Fees . Lessee shall collect landing fees
for all commercially operated aircraft landing at Fayetteville
Municipal Airport and being served by Fayetteville Air Service,
with the exception of regularly scheduled air carriers . It shall
be the responsibility of the Lessee to insure that said fees are
collected and, with supporting documentation, remit to Airport all
fees, less ten per cent (10%) for administrative costs associated
with this requirement. Airport shall provide Lessee current rates
and necessary documentation thereto.
ARTICLE VII
Maintenance and Care of Leased Premises
Section 7 . 1 Maintenance and Care of Leased Premises . The
Lessee, as part of the Agreement, will provide, at their expense,
all maintenance and custodial service for that the General Aviation
Terminal Building. The Airport agrees that it will keep and
maintain the exterior of the General Aviation Terminal Building,
including the roof, exterior walls and exterior plumbing thereof,
in good condition and repair, and 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 the Lessee' s agents or customers, upon notice from the
Lessee, the Airport will immediately cause repairs to be made and
restore the defective portions to good condition. The Airport
shall insure that the glass and doors are in good condition on the
effective date of this lease; thereafter, Lessee shall be
responsible for maintenance of said glass and doors .
The Airport shall not be responsible for, or pay for any expense
which might arise due to, the installation and/or removal of
antennas, radio signal or receiving towers or related facilities .
The Lessee shall be responsible for the maintenance and normal
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operating condition of all heating, electrical and air conditioning
equipment and interior plumbing on the premises used by Lessee.
The Airport shall be responsible only for major maintenance of the
existing equipment in the mechanical room of the General Aviation
Terminal Building. Major maintenance, as used herein, shall mean
replacement of the heating and air conditioning units or compressor
units when deemed necessary by the Airport .
Lessee at all times shall keep in a clean and orderly
condition and appearance all of the Leased Premises and all of
Lessee' s fixtures, equipment and personal property which are
located thereon. Lessee shall perform mowing of the Leased
Premises . Lessee shall not commit or suffer to be committed any
nuisance on the Leased Premises . Lessee shall conduct its
operations in an orderly and proper manner so as not to annoy,
disturb, or be offensive to others at or surrounding the Airport.
Lessee shall take all reasonable measures to keep the sound level
of its operations as low as reasonably possible. Lessee shall not
permit the accumulation of any rubbish, trash or other waste
material on the Leased Premises. Except in tanks and in the manner
approved by appropriate governmental authorities, Lessee shall not
store any gasoline or other material likely to give off fumes or
gases or any material likely to constitute a fire, safety or
security hazard on the Leased Premises . Lessee shall not cause or
permit any Hazardous Material or Hazardous Substance to be used,
stored, generated or disposed of on or in the Leased Premises by
Lessee, Lessee' s tenants, agents, employees, contractors or
invitees without first obtaining the Airport' s written consent.
ARTICLE VIII
Indemnity and Insurance
Section 8 . 1 Indemnity. Lessee shall indemnify, protect,
defend and hold completely harmless, the City, the Airport, and
their trustees, councilors, officers, agents and employees from and
against all liability, losses, suits, claims, judgments, fines or
demands arising from injury or death of any person or damage to any
property, including all reasonable costs for investigation and
defense thereof (including attorney fees, court costs, and expert
fees) , of any nature whatsoever arising out of or incident to this
Agreement, Lessee' s use or occupancy of the Airport premises, the
rights, licenses, or privileges granted Lessee herein, or the acts
or omissions of Lessee' s officers, agents, employees, contractors,
subcontractors or licensees, regardless of where the injury, death
or damage may occur. The Airport shall give notice to Lessee of
any such liability, loss, suit, claim or demand, and Lessee shall
defend same using counsel reasonably acceptable to the Airport. No
word, sentence, paragraph or phrase shall be construed to waive
that tort immunity as set forth under Arkansas Law. The provisions
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of this section shall survive the expiration or early termination
of this Agreement.
Section 8 . 2 Insurance. Lessee shall keep the fixed base
operation and fuel storage system fully insured and shall maintain
in force during the Term and any extended term public liability and
property damage insurance in comprehensive form including but not
limited to hangar keepers liability, Airport liability, aircraft
liability, broad form property damage, personal injury, and any
excess liability in umbrella form, with such coverage and limits as
reasonably may be required by the Airport from time to time and
outlined 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 of 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 Airport; (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 Airport may
possess , including any self -insured retention or deductible the
Airport may have, and any other insurance coverage the Airport may
possess shall be considered excess insurance only; (d) the limits
of liability required therein are on an occurrence basis; and (e)
the policy shall be endorsed with a severability of interest or
cross-liability endorsement, providing that the coverage shall act
for each insured and each additional insured as though a separate
policy had been written for each insured or additional insured;
however, nothing contained therein shall act to increase the limits
of liability of the insurance company.
Any deductibles or self-insured retentions must be declared to
and approved by the Airport. At the option of the Airport, either;
(a) the Lessee shall reduce or eliminate such deductibles or self -
insured retentions as respects the Airport, the City, and their
councilors, trustees, agents, officers, and employees, or (b)
Lessee shall procure a bond equal to the amount of such deductibles
or self -insured retentions guaranteeing payment of losses and
related investigations, claims administration and defense expenses
(including attorneys' fees, court costs and expert fees) .
If the insurance coverage required herein is canceled, changed
in coverage or reduced in limits, Lessee shall, within fifteen (15)
12
days of receipt of notice from the Airport, but in no event later
than the effective date of cancellation, change or reduction,
provide to the Airport a certificate showing that insurance
coverage has been reinstated or provided through another insurance
company. Upon failure to provide such certificate, the Airport
may, without further notice, and at its option either (a) exercise
the Airport' s rights as provided in the default provisions of this
Agreement, or (b) procure insurance coverage at Lessee' s expense
whereupon Lessee promptly shall reimburse the Airport for such
expense.
ARTICLE IX
Fuel Farm
Section 9 . 1 Fuel Farm. The Lessee leases the area described
and illustrated on Exhibit B, which is the area containing the fuel
storage system. The Lessee shall pay annual rental for this area
of $7 , 683 . 24 , which sum shall be paid at the rate of $640 . 27 per
month. The Lessee' s rental for the area containing the fuel
storage system shall increase according to the schedule set out in
Section 6 . 1 .
Aviation gasoline and/or jet fuel shall not be sold for non-
aeronautical purposes .
Section 9 . 2 Fuel Flowage Fees . Lessee shall pay the Airport
for the right to sell jet fuel and aviation gasoline on the Airport
an amount equal to the rate described in Section 91 . 16 , Code of
Fayetteville.
Section 9 . 3 Fuel Audits . Lessee agrees to furnish Airport
annually, certified statements which show the total fuel delivered
to the fuel farm for the preceding calendar year at Fayetteville,
Arkansas . Should the Lessee fail to furnish the Airport with the
certified statements from an officer of Lessee within three (3)
months following the due date of each certified statement from an
officer of Lessee, Lessee agrees to pay the Airport the sum of $100
per day for each day following the said three (3) months until such
statements are delivered to Airport.
ARTICLE X
Complaints
Section 10 . 1 Customer Complaints . The Lessee will keep a
record of all complaints from customers concerning any aspect of
the sale of Jet or Aviation Gasoline, aircraft maintenance, or any
13
other aspects of the Fixed Base Operation. If a complaint is
received by the Airport, the Airport Manager will notify the Lessee
in writing and provide a copy of the notice to the Chairman of the
Grievance Committee.
On a monthly basis the Lessee will submit a report to the
Airport that will include records of any complaints, and what
action was taken to mitigate the problem. In addition, a Fuel and
Maintenance Ledger will also be submitted on a monthly basis. This
ledger will include customer name, time service was ordered, time
service began, time service completed, fueling agent, and comments .
On a monthly basis Lessee shall submit to Airport a copy of the
ledger (s) with customer name, aircraft type and identification
deleted. If, however, a complaint shall arise concerning services
contained on the ledger (s) , lessee shall then submit to the Airport
the ledgers) without the deletions concerning the complaint .
If a resolution to the complaint is not reached, the complaint
will be forwarded to the grievance committee as outlined in Section
10 . 2 .
Section 10 .2 Grievance Committee. A three person committee
will be established to hear Fixed Base Operation customer
complaints . This committee will meet on an as needed basis .
Airport Management will appoint one person, one person will be
appointed by the Lessee. The two persons appointed will appoint a
third person who will be chairman of the committee. The chairman
of the committee will become a member of the Airport Board, pending
approval by the Fayetteville City Council by separate action.
Complaints will be considered by this committee and every
effort will be made to resolve the problem. If a resolution cannot
be found, then the complaint will be forwarded to the Airport
Board, and then to the Fayetteville City Council if necessary.
ARTICLE XI
Indemnity - Hazardous Substance
Section 11 . 1 Indemnity - Hazardous Substance. Lessee shall
not cause or permit any Hazardous Substance to be used, stored,
generated or disposed of on or in the Leased Premises by Lessee,
Lessee' s agents, employees, contractors, or invitees without first
obtaining the Airport' s written consent. If Hazardous Substances
are used, stored, generated, or disposed of on or in the Leased
Premises except as permitted above, or if the Leased Premises or
any other Airport property become contaminated in any manner for
which Lessee is responsible or legally liable, Lessee shall
indemnify and hold harmless the Airport from any and all claims,
14
damages, fines, judgments, penalties, costs, liabilities, or losses
(including, without limitation, a decrease in value of the Leased
Premises or other Airport property, damages caused by loss or
restriction of rentable or usable space as a part of the Leased
Premises, or any damages caused by adverse impact on marketing of
the Leased Premises or other Airport property, and consultant and
expert fees) arising during or after the Term hereof and arising as
a result of that contamination by Lessee or Lessee' s agents,
employees, contractors or invitees . This indemnification includes,
without limitation, any and all costs incurred because of any
investigation of the Airport or any cleanup, removal, or
restoration mandated by a federal, state or local agency or
political subdivision. Without limitation of the foregoing, if
Lessee causes or permits the presence of any Hazardous Substance on
the Leased Premises or other Airport property that results in
contamination, Lessee shall take promptly, at its sole expense, any
and all necessary actions to return the contaminated premises to
the condition existing prior to the presence of any such Hazardous
Substance. Lessee first shall obtain approval from the Airport for
any such remedial action. This indemnification agreement includes,
but is not limited to, the Lessee' s previous and future use of the
fuel farm. As used herein, "Hazardous Substance" means any
substance that is toxic, ignitable, reactive, or corrosive and that
is regulated by any local government, the "substance" includes any
and all material or substances that are defined as "hazardous
waste" , "extremely hazardous waste" , or a "hazardous substance"
pursuant to state, federal or local governmental law. "Hazardous
Substance" includes but is not restricted to asbestos,
polychlorobiphenyls ("PCB' s") , and petroleum and petroleum related
products. No word, sentense, phrase or paragraph contained herein
shall be construed to vaive that tort immunity as set forth under
Arkansas Law.
ARTICLE XI
Governmental Reauirements
Section 12 . 1 Governmental Reauirements - General . Lessee
shall comply with all Governmental Requirements applicable to
Lessee' s use and operation of the Leased Premises . Without
limiting the generality of the foregoing, Lessee shall at all times
use and occupy the Airport in strict accordance with all laws,
rules, regulations, minimum standards, and security plans that may
be imposed by the FAA, the Airport, the state, federal or city
government with respect to the Airport and operations thereof .
Lessee shall procure, and require all its subsidiaries or
assignees to procure, from all governmental authorities having
jurisdiction over the operation of Lessee hereunder, all licenses,
franchises, certificates, permits or other authorizations which may
15
be necessary for the conduct of Lessee' s business on the Leased
Premises .
Lessee shall require its guests and invitees and those doing
business with it to comply with all Governmental Requirements
relating to the conduct and operation of Lessee' s business on the
Leased Premises .
Section 12 .2 No Liability for Exercise of Powers . The Airport
shall not be liable to Lessee for any diminution or deprivation of
its rights which may result from the proper exercise of any power
reserved to the Airport in this Agreement or by Reason of
governmental requirements; Lessee shall not be entitled to
terminate this Agreement by reason thereof, unless the exercise of
such power shall interfere with Lessee' s rights hereunder so as to
constitute a termination of this Agreement by operation of law.
Section 12 .3 Nondiscrimination. Lessee, and its successors in
interest, and assigns, as part of the consideration hereof, hereby
does covenant and agree, as a covenant running with the land, that
in the event facilities are constructed, maintained or otherwise
operated on property described in this Agreement for a purpose for
which a Department of Transportation program or activity is
extended or for another purpose involving the provisions of similar
services or benefits , Lessee shall remain and operate such
facilities and service in compliance with all other requirements
imposed pursuant to Title 49 CFR Part 21 , Nondiscrimination in
Federally-Assisted Programs of the Department of Transportation-
Effectuation of Title VI of the Civil Rights Act of 1964 , as said
regulations may be amended.
Lessee, and its successors in interest, and assigns, as a part
of the consideration hereof, does covenant and agree hereby, as a
covenant running with the land, that: (1) no person shall be
excluded from participation in, denied the benefits of, or
otherwise be subjected to discrimination in the use of said
facilities on the grounds of race, color, creed, national origin,
sex or handicap; (2) in the construction of any improvements on,
over or under such land, and the furnishings of services thereon,
no person shall be excluded from participation in, denied the
benefits of, or otherwise be subjected to discrimination in the use
of said facilities on the grounds of race, color, creed, national
origin, sex or handicap; (3) in the construction of any
improvements on, over or under such land, and the furnishings of
services thereon, no person shall be excluded from participation
in, denied the benefits of , or otherwise be subjected to
discrimination in the use of said facilities, on the grounds of
race, color, creed, national origin, sex or handicap; (4) Lessee
shall be responsible for maintaining the Leased Premises and
16
services in a manner which complies with the parties' respective
obligations under 14 CFR Part 382 , NONDISCRIMINATION ON THE BASIS
OF HANDICAP IN AIR TRAVEL, under the Uniform Federal Accessibility
Standards (UFAS) , or substantially equivalent standards; under 49
CFR part 27, NONDISCRIMINATION ON THE BASIS OF HANDICAP IN PROGRAMS
AND ACTIVITIES RECEIVING OR BENEFITING FROM FEDERAL FINANCIAL
ASSISTANCE; and under 42 U. S.C. S . §§ 12101, et seq. , THE AMERICANS
WITH DISABILITIES ACT of 1990, or a substantially equivalent
standard, and (5) Lessee will be responsible for any alterations
and/or construction made during the initial lease period or any
extensions or renewal within the demised space, the subject of this
Lease, which may be mandated by or necessary to meet the
requirements of the statutes and regulations cited above and other
relevant Federal, State or local laws, statutes and regulations
cited above and other relevant Federal, State or local laws,
statutes and ordinances that relate to handicapped accessibility
standards .
To the extent applicable, Lessee assures that it will
undertake an Affirmative Action Program as required by 14 CFR Part
152 , Subpart E to ensure that, on the grounds of race, color,
creed, national origin or sex, no person shall be excluded from
participating in any employment activities covered in 14 CFR Part
152 , Subpart E. Lessee assures that it will require that its
covered suborganizations provide assurances to the Airport that
they similarly will undertake Affirmative Action Programs and that
they will require assurances from their suborganizations as
required by 14 CFR Part 152 , Subpart E to this same effect.
Section 12 . 4 Taxes and Other Governmental Charges . Lessee
shall pay, as the same become due, all taxes and governmental
charges of any kind whatsoever that at any time lawfully may be
assessed or levied against or with respect to Lessee' s
improvements, machinery, equipment or other property installed or
used upon the Airport, including any ad valorem or personal
property tax that may be assessed against any leasehold interest or
estate created by this Agreement. In good faith and with due
diligence, Lessee may contest any such taxes or governmental
charges . This section applies only to taxes on property owned by
Lessee.
Section 12 . 5 Domestication. If Lessee is a foreign
corporation, it shall domesticate its corporate status within the
State of Arkansas, and obtain a certificate of good standing from
the Secretary of the State of Arkansas, and provide to the Airport
such evidence of domestication in good standing as the Airport from
time to time reasonably may require.
ARTICLE XIII
17
Events of Default
Section 13 . 1 Events of Default Defined. The following shall
be "events of default" under this Agreement, and the terms "events
of default" or "default" shall mean, whenever they are used herein,
any one or more of the following:
a. Lessee shall fail to pay when due and owing any rentals,
fees or charges payable hereunder and such nonpayment
shall continue for twenty (20) days after written notice
thereof by the Airport;
b. Lessee shall (1) mortgage, pledge or encumber, any
portion of its interest in this Agreement; (2) subject
the Leased Premises to any lien of whatsoever nature, or
(3) transfer, sublease or assign, either voluntarily or
by operation of law, any portion of its interest in this
Agreement, except in accordance with the provisions
hereof;
c. Lessee shall terminate its corporate structure, except as
permitted herein;
d. Lessee voluntarily shall abandon, desert, or vacate the
Leased Premises;
e. Lessee shall fail to comply with insurance requirements
imposed hereunder;
f . Lessee shall fail to observe or perform any other of its
obligations hereunder, and such failure shall continue
unremedied for twenty (20) days after the Airport shall
have given to the Lessee written notice specifying such
default. Provided, the Airport may grant Lessee such
additional time as it' s reasonably required to correct
any such default if lessee has instituted corrective
action and diligently is pursuing the same;
g. Lessee shall fail to provide and maintain any security
assurances required hereunder; or
Section 13 .2 Remedies upon Lessee' s Default. Whenever an
event of default of Lessee shall occur, the Airport may pursue any
available right or remedy at law or equity including:
a. Termination. At its exclusive option, the Airport may
deliver to Lessee written notice of termination,
specifying the date upon which the Agreement will
terminate. In the event of termination, Lessee' s rights
18
to possession of the Leased Premises immediately shall
cease. The Airport may then reenter and take possession
of the Leased Premises and Lessee forthwith shall
surrender possession of the Leased Premises . Upon
termination of this Agreement, Lessee shall be liable for
payment of :
(1) All sums accrued through the date of termination;
(2) The reasonable costs incurred by the Airport to
relet the Leased Premises, or any portion thereof;
and
(3) The reasonable cost incurred by the Airport to
restore the Leased Premises or any portion thereof
to the condition in which they originally were
leased, ordinary wear and tear excepted.
All rentals received by the Airport from reletting the
Leased Premises after the termination of this Agreement
shall be credited against the Outstanding Rental Balance.
The acceptance by the Airport of any rentals from Lessee
after the termination of this Agreement shall not
reinstate this Agreement.
b. Non-Termination. As alternative remedy upon Lessee' s
default, the Airport may elect not to terminate this
Agreement in which event the Lessee shall continue to
perform all conditions and obligations to be performed by
Lessee hereunder, notwithstanding any entry or reentry by
the Airport, or commencement of any suit in unlawful
detainer or other action brought by the Airport for the
purpose of effecting such entry or reentry or obtaining
possession of the Leased Premises . After giving Lessee
ten (10) days written notice, the Airport may reenter the
Leased Premises to take possession thereof . The Airport
shall use reasonable diligence to relet the Leased
Premises upon such terms and conditions as the Airport
may deem advisable. Lessee agrees that this Agreement
constitutes full and sufficient notice of the right of
the Airport to relet the Leased Premises in the event of
such reentry, without affecting the surrender or
termination of this Agreement. Rentals or other proceeds
received by Airport from subletting the Leased Premises
shall be credited against the Outstanding Rental Balance
after deducting from such proceeds all of the Airport' s
expenses in connection with such reletting, including,
without limitation, all repossession costs, brokerage
19
commisions, legal expenses , attorney fees, and expenses
of preparation for reletting.
c. Release of Liability; Waiver. If the Airport takes
possession of the Leased Premises upon Lessee' s default,
the Airport may expel Lessee and those claiming through
or under Lessee and remove their property. The Airport
may remove all Lessee' s property in or upon the Leased
Premises and place such property in storage for the
account of and at the expense of Lessee.
d. Cumulative Remedies . Each remedy available to the
Airport under this section shall be cumulative and shall
be in addition to every other remedy of the Airport under
this Agreement or existing at law or in equity.
Section 13 . 3 Non-Waiver. Neither the waiver by the Airport of
any breach of Lessee of any provision hereof nor any forbearance by
the Airport to seek a remedy for any such breach shall operate as
a waiver of any other breach by Lessee.
Section 13 . 4 Events of Default by the Airport, Lessee' s
Remedies . The Airport shall not be in default in the performance
of any of its obligations hereunder until the Airport shall have
failed to perform such obligations for thirty (30) days or such
additional time as is reasonably required to correct any such
default, after notice by Lessee to the Airport specifying wherein
the Airport has failed to perform any such obligations; neither the
occurrence nor existence of any default by the Airport shall
relieve Lessee of its obligations hereunder to pay rentals, fees
and charges . However, Lessee may institute such action against the
Airport as Lessee may deem necessary to compel performance or
recover its damages for nonperformance.
Section 13 . 5 Condemnation. If , at any time during the Term
and any extended term, the Leased Premises or the improvements
located thereon, or any portion thereof, shall be taken by exercise
of the power of eminent domain by a governmental entity other than
the Airport or the City, the proceeds and awards in the
condemnation proceedings shall be divided, and rentals required
hereunder shall be adjusted in such manner as shall be just and
equitable. If the Airport and Lessee are unable to agree upon a
just and equitable division of proceeds or adjustment of rentals
within thirty (30) days after rendition of any condemnation award,
the matters then in dispute shall be submitted for determination by
a court of competent jurisdiction. If the Leased Premises are
wholly taken by condemnation, this Agreement shall terminate.
Provided, valuation of Lessee' s interest in the Leased Premises and
any improvements thereon shall be determined in the manner set
20
forth in Section 3 . 7 (Termination of Agreement for Airport
Purposes) .
ARTICLE XIV
Transfer of Interests
Section 14 . 1 Assignment by the Airport. The Airport may
transfer or assign this Agreement to any successor in interest to
whom the Airport may be sold or assigned; however, the successor in
interest shall execute and deliver to the Airport, with a copy to
Lessee, an instrument assuming the obligation, with a copy to
Lessee, an instrument assuming the obligations of the Airport and
the City under this Agreement.
Section 14 . 2 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, nor grant any
license or concession for all or any part of said Leased Premises,
without the prior written consent of the Airport, 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, nor 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 14 .2
and shall require the Airport' s prior consent, and Lessee shall
notify the Airport of any such change or proposed change.
ARTICLE XV
Miscellaneous
Section 15 . 1 Notices . All notices, certificates, statements,
demands , requests, consents, approvals, authorizations, offers,
agreements, appointments, designations or other communication which
may be or are required to be given by either party thereto to the
other shall be deemed to have been sufficiently given on the third
day following the day on which the same are mailed by Registered or
21
Certified Mail, postage prepaid as follows if to the Airport:
Fayetteville Municipal Airport
4500 S. School Ave. , Suite F
Fayetteville, AR 72701
and if to Lessee:
Fayetteville Air Service
P.O. Box 1266
Fayetteville, AR 72702
The Airport and the Lessee, by notice given hereunder, may
designate any further or different addresses to which subsequent
notices, certificates or other communications shall be sent.
Section 15 . 2 Severability. In the event any provisions of
this Agreement shall be held invalid or unenforceable by any court
of competent jurisdiction, such holding shall not invalidate or
render unenforceable any other provision hereof , unless such
holding shall materially affect the rights of either party as set
forth herein.
Section 15 . 3 Entire Agreement; Modification. This Agreement
expresses the entire understanding of the Airport and Lessee
concerning the Leased Premises and all agreements of the Airport
and Lessee with which each other concerning the subject matter
hereof . Neither the Airport nor Lessee has made or shall be bound
by any agreement or any representation to the other concerning the
Leased Premises or the subject matter hereof which is not set forth
expressly in this Agreement . This Agreement may be modified only
by a written agreement of subsequent date hereto signed by the
Airport and Lessee.
Section 15 . 4 Execution of Counterparts . This Agreement
simultaneously may be executed in several counterparts, each of
which shall be an original and all of which shall constitute but
one and the same instrument .
Section 15 . 5 Effect of Sundays and Legal Holidays . Whenever
this Agreement requires any action to be taken on a Sunday or a
legal holiday, such action shall be taken on the first business day
occurring thereafter. Whenever in this Agreement, the time within
which any action is required to be taken, or within which any right
will lapse or expire, shall terminate on Sunday or a legal holiday,
such time shall continue to run until 11 : 59 p.m. on the next
succeeding business day.
Section 15 . 6 Descriptive Headings; Table of Contents . The
22
descriptive headings of the sections of this Agreement and any
Table of Contents annexed hereto are inserted or annexed for
convenience of reference only and do not constitute a part of this
Agreement and shall not affect the meaning, construction,
interpretation or effect of this Agreement.
Section 15 .7 Choice of Law; Enforcement. This Agreement shall
be construed and enforced in accordance with the laws of the State
of Arkansas. Whenever in this Agreement it is provided that either
party shall make any payment or perform, or refrain from
performing, any obligation, each such provision, even though not so
expressed, shall be construed as an express covenant to make such
payment or to perform or not to perform, as the case may be, such
act or obligation.
Section 15 . 8 Force Majeure. Neither the Airport nor Lessee
shall be deemed in violation of this Agreement if it is prevented
from performing any of the obligations hereunder by reason of
embargoes, shortages of material, acts of God, acts of the public
enemy, acts of superior governmental authority, weather conditions ,
floods, riots, rebellions, sabotage, or any other circumstances for
which it is not responsible or which are not within its control,
and the time for performance automatically shall be extended by the
period the party is prevented from performing its obligations
hereunder.
Section 15 . 9 Consent Not Unreasonably Withheld. Whenever it
is provided herein that the consent of the Airport or Lessee is
required, such consent shall not be unreasonably withheld,
conditioned or delayed, except as provided herein.
Section 15 . 10 Recovery of Attorney Fees and Costs . If either
party shall bring any legal or equitable action against the other,
the losing party shall pay the reasonable attorney fees and costs
incurred by the prevailing party in such action including any
appeal . For purposes of this section, "costs" shall include expert
witness fees, and court costs .
Section 15 . 12 Binding Effect. This Agreement shall inure to
the benefit of and shall be binding upon the Airport, Lessee and
their respective successors and assigns, if such assignment shall
have been made in conformity with the provisions of this Agreement.
23
IN WITNESS WHEREOF, the Airport and Lessee have executed this
Agreement at Fayetteville, Arkansas on the 764A day of Se,, . 1997 .
City of Fayetteville
By
{ f. or Ma
") rr
ATTEST
Title: CI T I CLERK
Aerotech Services Inc.
dba Fayetteville Air Service
By
Title: hes'ideil-71
ATTEST:
Title:
24
I AIRPORT LAYOUT On N .•dvr76,A N. AIRPORT LOCATION 1
Loan ID•r7V AR Oes
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+$10'
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Tr.r . 0 .
N AR HI 1 MAKS
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* ' ; OVALS 3S-CON
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Revd p US 71
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FAYETTEVILLE •
NOT , .
a.ti .1� -
AIRPORT DEPARTMENT 199 Q
THE CITY OF FAYETTEVILLE,ARKANSAS 8 u �
MICROFILMED c° 'T 4 "
September 28, 1998 C /
N0V �
�v
Mark Courdin, President 6 X998
Aero Tech Services, Inc . A14,24.,.
dba Fayetteville Air Service
P. O. Box 1266
Fayetteville, Arkansas 72702
RE: FBO/FUEL FARM LEASE
Dear Mr. Courdin:
The Airport Board, at the request of Aero Tech, dba Fayetteville
Air Service, at their meeting on June 4 , 1998 approved the first
option to the FBO lease . This option term is for three years .
In accordance with Article VI, Section 6 . 1 and Article IX, Section
9 . 1 of your Lease Agreement, rental for the first option is to be
increased by 3 . 5 percent . Beginning on September 1, 1998, rentals
due the City of Fayetteville for the FBO would be $1, 626 . 61 and
$662 . 68 for the fuel farm. Acceptance of this option may be shown
by signing below (and returning this original page to our office) ,
and upon City Council approval .
We can expect many changes during the next three years . By working
together we can make this time a creative and positive opportunity
for both Fayetteville Air Service and Drake Field.
Our office is looking forward to working with you and your
employees in the upcoming months . Please feel free to drop by the
office to discuss any concerns, questions, or any suggestions you
have regarding activities on Drake Field.
Sincerely,
--.. 0
Dale Frederick, Airport Manager
Drake Field, Fayetteville Municipal Airport
DF/lp
cc : Ch VeriClz.
(Signa ure and Ti le) (Date)
4500 SOUTH SCHOOL AVENUE,SUITE F • AIRPORT TERMINAL BUILDING • FAYETTEVILLE, AR 72701
PHONE 501-521-4750 Ext.6 • FAX 501-521-1735