HomeMy WebLinkAbout112-97 RESOLUTION RESOLUTION NO. 112-97
A RESOLUTION APPROVING A LEASE AGREEMENT WITH
WINGS AVIONICS, INC., AND APPROVAL OF A BUDGET
ADJUSTMENT.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE,
ARKANSAS:
Section 1. That the City Council hereby approves a lease agreement with Wings Avionic,
Inc. for the period of December 1, 1997 to November 30, 1998 and authorizes the Mayor and City
Clerk to execute said lease. A copy of the lease agreement is attached hereto marked Exhibit "A"
and made a part hereof.
Section 7. The City Council hereby approves a budget adjustment increasing Building
Costs,Acct. No. 5550 3960 5804 00 in the amount of$50,000 by decreasing Use of Fund Balance,
Acct. No. 5550 0955 4999 99 in the amount of$47,000 and Rent on T-Hangers, Acct. No. 5550
0955 4453 00 in the amount of$3,000. A copy of the budget adjustment is attached hereto and
made a part hereof.
PASS AND APPROVED this 2nd day of December , 1997.
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4. APPROVED:
l! fBy: ,c << \ %J'l:l c r<.--
."..' red Hanna, Mayor
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ATTEST.
By: /f .C i '2,e_i
Traci Paul, City Clerk
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EXHIBIT A
EXECUTIVE HANGAR LEASE AGREEMENT
This LEASE AGREEMENT made this , n a' day of bece y,,,(, et- , 19 9 7 ,
between the City of Fayetteville, Arkansas, hereinafter called "Lessor", and Wings Avionics, Inc.,
ATTN: R. M. Schossow, of P. 0. Box 1099. Lowell, AR 72745, hereinafter called "Lessee".
WHEREAS,Lessor is the owner of an airport known as the Fayetteville Municipal Airport
(Drake Field), herein referred to as the "Airport"; and
WHEREAS, Lessor has constructed an aircraft hangar at the Airport; and
WHEREAS, Lessee desires to lease space within said aircraft hangar.
NOW,THEREFORE,the parties, in consideration of the mutual covenants contained herein,
hereby agree as follows:
1. Lessor leases to Lessee, and Lessee leases from Lessor, the aircraft hangar at 421 E.
Ernest Lancaster Drive,Fayetteville,Arkansas as reflected on Exhibit "A" attached hereto and made
a part hereof.
2. Lessee is granted the use, in common with other 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, aprons,taxiways,
flood lights,landing lights,beacons, control tower, signals, radio aids, and all other conveniences for
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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. Subject to earlier termination as hereinafter provided, the initial term of this Lease
Agreement shall be for one (1) year commencing on the 1st day of December , 19 97 , and
ending on the 30th day of November , 19 98. Lessor further agrees to extend the initial term
of this Lease Agreement up to five (5) additional one (1)year terms provided that written notice is
given by Lessee to Lessor at least sixty(60)days prior to the scheduled termination date of the initial
lease term or extension thereof, as the case may be, of its desire to extend the Lease Agreement for
an additional one(1)year term.
5. Lessee agrees to pay Lessor for the use of the premises,facilities, rights, and privileges
granted hereunder,the sum of Three Thousand Dollars($3,000.00)per month during the initial lease
term and extensions thereof less the monthly credit for leasehold improvements as set forth in
Paragraph 14(b) hereinbelow, with the total of said monthly credits not to exceed Fifty Thousand
Dollars ($50,000.00). However, should the lease term begin on a day other than the first day of a
calendar month, or should the lease end on a day other than the last day of a calendar month, such
partial month lease payment shall be a pro-rated share of the monthly lease payment. The initial lease
payment is due and payable upon execution of this lease agreement, and all subsequent monthly lease
payments shall be payable in advance on or before the 1st day of each month.
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6. Lessor shall maintain and keep in good repair so much of the Airport premises as is
not under the exclusive control of individual lessees.
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 serving the demised premises, including, but not
limited to heat, light, gas, electricity, and water.
8. Lessee agrees to observe and obey Lessor's ordinances and regulations with respect
to use of the demised premises and Airport; provided, however, such rules and regulations shall be
consistent with safety and with all city, county, and state rules and regulations, including all current
fire codes, and orders of the Federal Aviation Administration with respect to aircraft operations at
the Airport. Lessee shall be subject to Lessor's "Minimum Standards for Commercial Aeronautical
Activities at Drake Field"which are incorporated herein by reference thereto and made a part hereof
as if set out word for word.
9. Lessor authorizes Lessee to use the premises for aircraft engine, airframe and
accessory sales and maintenance. No other vehicles, equipment or supplies shall be stored on the
premises unless expressly agreed to by Lessor. Lessee further agrees to store only flammable material
in approved containers that is required for maintenance and instrument work and not to violate the
provisions of Lessor's property damage insurance policy. Any such violations shall constitute a
material breach of this agreement.
10. If the demised premises are partially damaged by fire or other casualty which is not
due to the negligence or fault of the Lessee, said premises shall be repaired with due diligence by
Lessor at Lessor's expense. 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
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thenceforth cease until such time as the premises shall be fully restored. If the demised premises are
completely destroyed, Lessor may reconstruct the hangar at the Lessor's own cost and the rent
payable hereunder shall be adjusted as set forth above, or Lessor may, at its option, cancel this
agreement, such cancellation to be effective as of the date the hangar was destroyed, and the rent
adjusted as set forth above.
11. Lessor shall procure and maintain in force during the term of this agreement fire and
extended coverage on the aircraft hangar in an amount equivalent to the replacement cost thereof.
Lessee shall also be required to insure any contents within the aircraft hangar.
During the term of this agreement Lessee shall at all times maintain general public
liability insurance in the amount of$2,000,000.00. Lessee shall file with Lessor's Airport Manager
Certificates of Insurance evidencing the insurance coverage required hereby.
12. Lessee agrees to indemnify Lessor against any liability for injuries to persons or
damage to property caused by Lessee's negligent use or occupancy of the leased premises;provided,
however,that Lessee shall not be liable for any injury, damage or loss occasioned by the negligence
of Lessor or its agents or employees; and provided further, that Lessor shall give to Lessee prompt
and timely notice of any claim made or suit instituted which in any way directly or indirectly affects
or might affect Lessee, and Lessee 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.
13. Improvements: Lessee shall bear the cost of all improvements or additions made to
the interior or exterior of the building on the lease 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
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Manager. Any signs 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.
14. Lease Credits/Initial Improvements. Initial improvements, which have been approved
in writing by the Airport Manager, are eligible for a credit to be applied to the monthly lease payment
as follows:
a. Maximum total credits for initial improvements shall not exceed the sum of
$50,000.00.
b. Maximum total credits shall be pro-rated over a period of forty-two (42)
months with a maximum monthly credit of One Thousand Two Hundred
Dollars ($1,200.00) applied towards reduction of rent for the first forty-one
(41) months of the initial lease term and extensions thereof and a credit of
Eight Hundred Dollars ($800.00) in the forty-second (42nd) month of the
extended lease term.
c. Copies of all bills for initial improvements shall be submitted to the Airport
Manager for approval prior to being applied toward credit.
d. Upon termination of this lease and Lessee's abandonment of the demised
premises, said initial improvements shall become the property of Lessor and
Lessee shall be entitled to no additional consideration.
15. Maintenance: The City shall be responsible only for major maintenance of the existing
equipment, i.e. replacement of heating unit and other equipment installed by Lessor which includes
roof,hangar door motors, exterior walls and exterior plumbing. 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
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damaged at any time during the term due to ordinary wear and tear and not due to negligence of the
Lessee, or Lessee's agents or invitees, upon notice from Lessee, the City will immediately cause
repairs to be made and restore the defective portions to good condition. Routine maintenance of the
bi-fold hangar doors shall remain the responsibility of the City.
16. If Lessee fails to make any payment due hereunder within thirty(30) days of the date
on which such payment is due, Lessor may, at its option, terminate this agreement and take
possession of so much of Lessee's personal property as is reasonably necessary to secure payment of
the amount due and unpaid. Lessor shall also have the right to terminate this agreement in the event
Lessee breaches any other term of this agreement. Lessee shall be entitled to seven(7) days written
notice of termination.
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 permanent
interior structures installed, erected, or placed by Lessee in, on, or about the premises leased
hereunder shall remain the property of Lessor. 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 seven(7) days
after the expiration or other termination of this agreement, to remove any or all of Lessee's 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 seven(7) day period
shall thereupon become a part of the land on which it is located and title hereto shall thereupon vest
in Lessor.
18. Lessor may enter the premises leased to Lessee at any reasonable time for any purpose
necessary or incidental to the performance of its obligation.
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19. Lessee shall maintain the demised premises in a clean and orderly fashion at all times.
20. Lessee shall not start or operate aircraft engines within the aircraft hangar leased
hereby and shall not allow such operations by any other person.
21. Lessee shall not at any time assign this lease or sublet the demised premises without
the prior written consent of Lessor which shall not be unreasonably withheld.
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:
LESSOR: Airport Administration Office
4500 S. School, Suite F
Fayetteville, Arkansas 72701
Phone: 501-521-4750, ext. 6
LESSEE: ATTN: R. M. Schossow
Wings Avionics, Inc.
P. O. Box 1099
Lowell, AR 72745
Phone: 501-756-0077
23. This agreement shall be construed under the laws of the State of Arkansas.
24. All the covenants,conditions,and provisions under this agreement shall extend to and
bind the legal representatives, successors, and assigns of the respective parties hereof.
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IN WITNESS WHEREOF, the parties have executed this Lease on the day and year first
above written.
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LESSOR:
` 1 A x '`' 4%'*'' CITY OF FA TTEVILLE, ARKANSAS
,-ler :5 f''' ( ,! .. - / /"
• 0 I . .� By. \ /e/11/% 1L�
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Fre Hanna, Mayor
.
ATTEST:
By: /r.Or.C- .G«-/
Traci Paul, City Clerk
LESSEE:
WINGS AVIONICS, INC.
By: .aoridct,1711 Je.4ossco
Title: Rre s i c)e n1-
ATTEST:
By: C _`
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Title: acya/t.t aceAttal
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