HomeMy WebLinkAbout2000-06-08 - Agendas - Final FAYETTEVILLE
THE CITY OF FAYETTEVILLE. ARKANSAS
DEPARTMENTAL CORRESPONDENCE
TO: FRED HANNA, MAYOR
HEATHER WOODRUFF, CITY CLERK
AIRPORT BOARD MEMBERS
MEDIA
FROM : DALE FREDERICK, AIRPORT MANAGER
DATE: MAY 18� 2000
SUBJECT: AIRPORT BOARD MEETING-DATE CHANGED
At the request of Airport Board Chairman Rick McKinney, the Airport Board will not meet on June
I " as originally scheduled, but will hold its monthly meeting on June 811.
The meeting will be held in the Fayetteville Municipal Airport - Drake Field Conference Room at
4500 S. School Avenue at 1 :30 p.m. on June 8'.
DF/lp
AIRPORT BOARD AGENDA
10 June8, 2000
1 :30 p.m.
Terminal Conference Room
Fayetteville Municipal Airport
4500 S. School Avenue
Fayetteville, Arkansas
I Call to Order.
2. Minutes of the May 4, 2000
3 . Old Business:
a. Ground leasewithKen Schossow forautomated fuel dispensingunit (lease attached).
b. Terminal lease with Ken Schossow to operate an FBO (lease attached).
4. New Business:
5 . Other Business:
a. Update on Com Maze request.
b. Update on Airfest hosted by the Air Museum on June I 01h and 11 ' .
C. FAA Aviation Safety Program-Education Seminarto be held in the Airport Terminal
Lobby on Monday, June 12' at 7:00 p.m.
d. Marketing Report
6. Adjourn.
LEASE AGREEMENT
BY AND BETWEEN
The City of Fayetteville/Fayetteville Municipal Airport
AND
Wings Air, Inc.
Above Ground Self-Service Fueling Facility
INDEX
ARTICLE I
Definitions
Page
1 . 1 Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1 . 2 Rules of Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I
ARTICLE 11
Term
2 . 1 Term of Agreement . . . . . . . . . . . . . . . . . . . . . . I . . . . . 11 — . . . . . . 2
2 . 2 Options to Extend . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2. 3 Surrender of Possession Holding Over. . . . . - . . . . . . . . . . . . . . . . . .
ARTICLE III
Lessor's Grants� Reservations
3 . 1 Lease. . . . . . . . . . . . . . . . . . . . . . . . - . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
3 . 2 Avigation Easement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — � � I I � 4
3 . 3 Reservation of Mineral Rights. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
3 .4 Quiet Enjoyment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
3 . 5 No Joint Venture or Partnership. . . . . . . . . . . . . . . . . . . . . . . . . . 4
3 .6 Termination of Agreement for Airport Purposes. . . . . . -- - - . . . . . . . . . . 4
3 . 7 Minimum Standards . . . . . . . . . . . . . . . . . . . . - . . . . . . . . . . . - . . . . . . . . . . . . . . . 5
ARTICLE IV
Use
4 , 1 Use of the Leased Premises. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
4. 2 General Use of the Airport . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
43 Security Plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
4A Limitations on Signage. . . . . . . . . . . . . . . . . . . - . . . . . . . . . 5
ARTICLE V
Improvements to the Premises
5 . 1 Plans and Specifications. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
5 . 2 Effect of New Improvements. . . . - . . . . . . . . . . . . . . . . . . . . . . . . . . 6
5 . 3 Removal and Ownership of Airport Structures on
Leased Premise. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
5 .4 Inspection. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
i
ARTICLE %/ 1 40 6,
Rentals, Fees and Charqes
6. 1 Rental Charge. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
6. 2 Landlord ' s Lien. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
6. 3 Place of Payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
6. 4 Delinquencies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
6. 5 Utility Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
ARTICLE VII
Maintenance and Care of Leased Premises
7. 1 Maintenance and Care of Leased Premises. . . . . . . . . . - . . . . . . . . . . . . . . 7
ARTICLE VIII
Indemnity and Insurance
8 . 1 Indemnity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - . . . . . . . . . . . . . . . !.� � � . . . . . . . . . . . . . . . . . . . . . 8
8 . 2 Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
ARTICLE IX
Fuel Facilit
9. 1 Fuel Facility. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
9. 2 Fuel Flowage Fees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
93 Fuel Audits. . . - . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — . . . . . . . . . . 9
ARTICLE X
Complaints
10. 1 Customer Complaints. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
10. 2 Grievance Committee. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . to
ARTICLE X1
Indemnity - Hazardous Substance
11 . 1 Indemnity - Hazardous Substance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
it
ARTICLE XII 40 14?
Governmental Requirements
12. 1 Governmental Requirements - General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
12 . 2 No Liability for Exercise of Powers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1
12 . 3 Nondiscrimination. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1
12A Taxes and Ot tier Governmental Charges. . . . . . . . . . . . . . . . . . . . . . . . . 12
ARTICLE XIII
Events of Default
1 .) Events of Default Defined. . . . . . . . . . . . . . . . . . . . . . . . . . . . _ _ . . . . . . . . . . . . . . . . . . . . . . . . . . 12
11 . 2 Remedies upon Lessee's Default . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
13 . 3 Non-Waiver. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
13 . 4 Condemnation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
ARTICLE XIV
Transfer of Interests
14 . 1 Assignment by the Lessor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _ _ _ . . . . . 14
14 . 2 Assigning, Subletting and Encumbering. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
ARTICLE XV
Miscellaneous
15 . 1 Notices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
15 . 2 Severability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
15 . 3 Entire Agreement, Modification. . . . . . . . . . . . . . . . . . . . . . . . . _ . . . . . . . . . . . . 15
15 .4 Execution of Counterparts. . . . . _ . . . . I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
15 . 5 Effect of Sundays and Legal Holidays. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
15 .6 Descriptive Headings; Table of Contents. . . . . . . . . 16
15 . 7 Choice of Law; Enforcement . . . . . . . . . . . I . . � . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
15 . 8 Force Majeure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
15 . 9 Consent Not Unreasonably Withheld. . . . . . . . . . . . . . . . . . . . . . . . _ 16
15 . 10 Recovery of Attorney Fees and Costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
1511 Binding Effect. . . . . . . . . . . . . . . . . _ . . . . . . . . . . . . . . . . . . . . . . . 16
Signatures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
LEASE AGREEMENT 40
This Agreement madeand entered intoat Fayetteville, Arkansas the day of'__, 2000 .
by and between the City of Fayetteville, Arkansas, hereinafter referred to as tile "Lessor,11 and Wings
Avionics, Inc. Attn . - R. M. Schossow, of P. O. Box 1099, Lowell, AR 72745 , hereinafter referred to
as "Lessee. "
NOW, THEREFORE, the parties hereto, for and in consideration of the rents, covenants and
agreements contained herein, agree as finllows�
ARTICLE I
Definitions
Section 1 . 1 Definitions. Throughout this Agreement, the following words shall have tile
following meanings, respectively, unless the context clearly shall indicate some other meaning�
a. Apreement means this Lease Agreement between the City of Fayetteville and Lessee,
b. Airport means the Fayetteville Municipal Airport ,
C. QiUt means the City of Fayetteville, Arkansas,
d . FAA means the Federal Aviation Administration of the United States, or any federal
0 agency succeeding to its jurisdiction or function,
e� Governmental RNuirements means all federal, state and local laws, rules, regulations,
security plans, and rulings, including all amendments, now in effect or hereinafter
enacted,
r Leased Premises means the area described and illustrated on Exhibit "A and
9 Term means the period of time that this agreement shall be in effect, as set forth in
Section 2. 1 (Term of Agreement).
Section 1 . 2 Rules of Construction. Throughout this Agreement, unless the context clearly
shall require otherwise,
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
is Page I
d � The word "including means "including without limitation
c� The word "tie 11 or any other masculine pronoun includes any individUal regardless of'
sex,
r Reference to any exhibits shall mean exhibits attached to this Agreement which shall
be deemed incorporated by reference, and
9 Reference to articles or sections respectively shall mean articles or sections of' this
Agreement
h. "Lessor" shall be interchangeable with both of the words "City" and "Airport . "
ARTICLE 11
Term
Section 2 . 1 Term of Agreement. The Term of this Agreement shall be flor a period of one
year commencing on the date of this Agreement and expiring on unless otherwise
terminated or canceled. Provided 7 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 ; I.essee shall have
and hereby is granted options to extend the lease term upon expiration thereof, on
for 3 renewal periods of 3 years, which options, if exercised, will cause this lease to terminate
on . 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 Terni 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 of this review will be to hear
a report from:
A designee from the Airpon regarding the performanceof Wings Avionics, Inc. 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
Page 2
will be given to any customer complaint that has riot been heafd by the Airport Grievance Committee
and remains unresolved following consideration and mediation effiorts by the committee
Following each renewal review, the Airport Board shall recommend continuing or ter-mmating the
agreement , In order to establish fair and measurable performance criteria, the following performance
standards are establishe&
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 shall have posted at the fueling site a toll-firee
phone number for 24-hour emergency service for the facility, The Lessee should provide
assistance in a period of time not to exceed an one hour time period . More than all average
of four validated complaints per month over a twelve-month period of failure to answer
telephone calls will be considered failure to perform under this agreement .
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.
Section 2 . 3 Surrender of Possession: Holdinp rw
,, Ove . Except as othe ise 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 this Agreement. Lessee or their representative would remove at
their expense prior to vacating the aforesaid premises all pumps, tanks, or other equipment fumished
by Lessee.
If Lessee shall hold over after the termination of this Agreement, the Lessor may allow Lessee
to remain on the premises as a month-to-month tenant at will . During such tenancy, Lessee shall pay
to the Lessor 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. Lessor is the owner of an airport known as the Fayetteville Municipal
Airport/Drake Field , whereas, Lessee desires to lease from Lessor certain space for the installation
of an above ground, self-service fueling facility, Lessor agrees to grant, and lessee agrees to take, for
lessee 's sole and exclusive use for and dufing the term hereinafter provided, a certain tract of land
Page 3
80 feet by 95 feet located at the Airport and more particularly set forth and shown on the attached
exhibit marked "Exhibit A" which exhibit is attached hereto and made a part hereof
Lessee accepts the Leased Premises in the condition in which they exist at the commencenient ofthis
Agreement .
Section 3 . 2 Avigation Easement . The Lessor 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 [low
in effect or hereinafter enacted. The Lessor also reserves for itself and their licensees, air 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 Right . 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 riot
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 Quiet Enooyment. Unless Lessee shall have defaulted in its obligations hereunder,
it shall have quiet enjoyment of the Leased Premises. HOWEVER, THE CITY, AND ITS
AUTHORIZED REPRESENTATIVES, SHALL HAVE THE RIGHT TO INSPECT THE LEASED
PREMISES DURING ALL REASONABLE HOURS .
Section 3 . 5 No Joint Venture or PartnershiR. This Agreement shall not be deemed or
construed (a) to create any relationship ofjoint venture or partnership between the parties, (b) to give
the Lessor 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 .6 Termination of Agreement for Airport PuMose . Lessee agrees and understands
that, by reason of the broad public interest in the efficient maintenance, operation and development
of the Airport, the Lessor 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 Lessor elects to terminate the Agreement for the reasons stated in this section,
Lessee shall surrender the Leased Premises to the Lessor within ninety (90) days from receipt ofthe
Lessor' s written notice of its intent to terminate the Agreement and acquire Lessee's interest in the
Leased Premises. The Lessor shall use its best efforts to provide I..essee with comparable replacement
Page �
premises at the Airport at rates not to exceed those provided in this Agreement , If only a port ion of
t lie Leased Premises is required, t lie Lessor in ay terminate Lessee ' s rights to the portion oft lie Leased
Premises required, in the manner described in this section . If the Lessor provides replacement
premises at the Airport, the Lessor 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 a new location 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 . 7 Airport Minimum Standards. The Minimum Standards for Operations and
Commercial 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 of a self-service fueling facility. A increase in scope
of services would require the written approval of the Lessor.
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 Ai[port . 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 the 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 cur-rently exist, and as may be amended .
Section 4 . 4 Limitations on Signage. Without the prior written approval of the Lessor, 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.
Page 5
ARTICLE V 40 1'Y
Improvements to the Premises
Section 5 . 1 Plans and Specifications. All plans and specifications for new improvements oil
the Leased Premises shall be prepared by Lessee in compliance vAth all Governmental Requirements,
City of Fayetteville (Airport Board, City Inspections, City Planning, City Engineering, etc. ) and FAA
as applicable. Lessee shall furnish to the Lessor copies of permits and licenses needed For
construction. Construction plans and specifications shall be submitted by Lessee to tire Lessor for
approval . Thereafter, the Lessor 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 therefore shall be stated separately. Lessee shall have a reasonable time thereafter within
which to make any revision to remove the Lessor's objections, and the Lessor shall have sixty (60)
days within which to approve or reject Lessee's revised proposal . After the Lessor'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 Lessor one complete set of reproducible "as built" plans and
specifications.
Section 5 . 2 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 . 3 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 Lessor. Lessee may request permission in writing to
remove or alter such improvements. Within forty-five (45 ) days of receipt of such written request ,
the Lessor shall notify Lessee of either the rejection or approval of the request. Removal, storage,
maintenance, transportation and disposal of any improvements shall be made at Lessee I s sole cost .
Section 5 .4 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 Charg . For the period beginning from the date of this Agreement thFOUgh
. the Lessee shall pay annual rental for the area described in Exhibit A at the rate
ofThree Hundred Eight Four Dollars ($384 .00) annually, paying monthly on the I st day of each
month in advance at the rate of Thirty-two Dollars ($32.00) a month.
Ifthe Lease has not expired or been terminated, the annual rental rate may be increased yearly
at the rate of percentage increase in the Consumer Price Index calculated for the prior year ended
December 3 1 .
Page 6
Section 6. 2 Landlord 's Lien. If the Lessee defaults oil this Agreement , the Lessor shall have
a lien on all furnishings, equipment , fixtures and personal property of any kind, and the equity of'
Lessee therein. 'File lien is granted for tile purpose of securing the payment ofrentals, 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
ofthis Agreement to be performed and observed by Lessee, subject only to any mortgages to which
the Lessor shall consent . This lien shall be in addition to all rights of landlord given under tile laws
of' tile State of Arkansas, If the Lessee remains current in its rental obligations and otherwise
complies with the terms of this agreement, the Lessor 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 Delinguencie . In addition to any remedy available to it hereunder, the Lessor
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 anyjanitor 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.
ARTICLE VII
Maintenance and Care of Leased Premises
Section 7 . 1 Maintenance and Care of Leased Premises. 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 Airpon . 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
Page 7
fire, safety or security hazard on the Leased Premises. Lessee shall not cause or permit any
Hazardous Material or Hazardous Substance to be disposed of on the Leased Premises by Lessce,
Lessee 's agents, employees, contractors or invitees.
ARTICLE Vill
Indemnity and Insurance
Section 8 . 1 Indemnit Lesseeshall indemnify, protect, defend and hold completely harniless,
the City, the Airport , and their trustees, councilors, officers, agents and employees front 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 attomey 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 Lessor 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 Lessor. No word, sentence, paragraph
or phrase shall be construed to waive that tort immunity as set forth under Arkansas Law. The
provisions of this section shall survive the expiration or early termination of this Agreement .
Section 8. 2 Insurance. Lessee shall maintain in force during the Term and any extended tern]
public liability and property damage insurance in comprehensive form as reasonably may be required
by the Lessor 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
Lessor' (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 Lessor may possess, including any self-insured retention or deductible the
Lessor may have, and any other insurance coverage the Lessor 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 a§ 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 Lessor
At the option ofthe Lessor, either' (a) the Lessee shall reduce or eliminate such deductibles or self-
insured retentions as respects the Airport, the City, and their councilors, tnistees, agents, officers, and
employees, or (b) Lessee shall procure a bond equal to the amount of such deductibles or sOf-insured
Page 8
40
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 of reduced in
limits, Lesseeshall, within fifleen ( 15) days of receipt ofnotice from tile Lessor, but in noevent later
than tile 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 Lessor may, without further notice, and at its option
either (a) exercise the Lessor'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
Lessor for such expense.
ARTICLE iX
Self-service Fuel Facilit
Section 9. 1 Fuel Facilit The Lessee leases the area described and illustrated on Exhibit A,
which is the area which will contain the fuel storage system.
Aviation gasoline and/or jet fuel shall not be sold for non-acronautical purposes.
Section 9. 2 Fuel Floway
, ,e Fees. Lessee shall pay the Lessor 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 (Exhibit B ).
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 self-service fuel facility. If a complaint is received by the
Airport, the Airport 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 ledger will be
submitted on a monthly basis. This ledger will include the date fuel was delivered, the fueling agent,
the total gallons delivered and a copy of the bill of lading or other documentation which confirms the
total gallons delivered .
Page 9
% 0 lyoq
Section 10. 2 Grievance Committee. A three person committee is established to hear Customer
complaints. This committee meets oil an as needed basis.
Complaints will be considered by this committee and every effort will be made to resolve tile
problem , If a resolution cannot be found, then the complaint will be for-warded to the Airport Board ,
and then to the Fayetteville City Council if necessary.
ARTICLE X1
Indemnity - Hazardous Substance
Section 11 . 1 Indemnity - Hazardous Substance. Lessee shall not cause or permit any
Hazardous Substance to be disposed of on or in the Leased Premises by Lessee, Lessee ' s agents,
employees, contractors, or invitees. If Hazardous Substances are disposed of on or in the Leased
Premises, 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 indemnif� and hold harmless the
Airport front any and all claims, 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 Is use of the fueling facility. As
used herein, "Hazardous Substance IV 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,IV "extremely hazardous waste," or a "hazardous
substance" pursuant to state, federal or local governmental law. "Hazardous Substance" includes but
is not restricted to asbestos, polychiorobiphenyls ("PCB 's"), and petroleum and petroleum related
products. No word, sentence, phrase or paragraph contained herein shall be construed to waive that
tort immunity as set forth under Arkansas Law.
ARTICLE X1
Governmental Reguirements
Section 12. 1 Governmental Requirements - 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
Page 10
be imposed by the FAA, the Airport , the state, federal or city government with respect to tile 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 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 tile
Leased Premises.
Section 12. 2 No Liability for Exercise of Powers. Tire Lessor 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 Lessor 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
ofthe 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 wl-rich 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 Federal ly-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, thac ( 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 disability; (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 disability; (3 ) Lessee shall be responsible for maintaining the Leased Premises and
services in a marLner 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, under49 CFR part 27,
NONDISCRIMINATION ON THE BASIS OF HANDICAP IN PROGRAMS AND ACTIVITIES
RECEIVING OR BENEFITTING 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 (4 ) Lessee will be responsible for any alterations and/or
Page 11
/*
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 disabled 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 'Faxes 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 or Lessee's Agent.
ARTICLE XIII
Events of Default
Section 13 . 1 Events of Default Defined. The following shall be "events of default" Linder 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 aftet written
notice thereof by the A�irport ,
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,
Page 12
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 ally such
default if lessee has instituted corrective action and diligently is pursuing the same,
9. Lessee shall fail to provide and maintain any security assurances required hereunder.
Section 13 . 2 Remedies upon Lessee I s Default . Whenever an event of default of Lessee shall
occur, the Lessor may pursue any available right or remedy at law or equity including�
a. Termination. At its exclusive option, the Lessor 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 to possession of the Leased Premises
immediately shall cease. The Lessor 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 Lessor to relet the Leased Premises, or
any portion thereof, and
(3 ) The reasonable cost incurred by the Lessor to restore the Leased Premises or
any portion thereof to the condition in which they originally were leased .
All rentals received by the Lessor from reletting the Leased Premises after the
termination of this Agreement shall be credited against the Outstanding Rental
Balance. The acceptance by the Lessor of any rentals from Lessee after the
termination of this Agreement shall not reinstate this Agreement .
b. Non-Ternm nation. As alternative remedy upon Lessee's default, the Lessor 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 Lessor, or commencement of any suit in unlawful detainer
or other action brought by the Lessor 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 Lessor may reenter the Leased Premises to take possession
thereof Lessee agrees that this Agreement constitutes full and sufficient notice of the
fight of the Lessor to relet the Leased Prermses in the event of such reentry, without
affecting the surrender or termination of this Agreement .
Page 13
40
C. Release of Liability� Waiver. if the Lessor takes possession of tile Leased Premises
upon Lessee's default, the Lessor may expel Lessee and those claiming through Or
under Lessee and remove their property. The Lessor 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 Lessor under this section shall
be cumulative and shall be in addition to every other remedy of the Lessor under this
Agreement or existing at law or in equity.
Section 13 . 3 Non-Waiver. Neither the waiver by the Lessor of any breach of Lessee of any
provision hereof nor any forbearance by the Lessor to seek a remedy for any such breach shall Operate
as a waiver of any other breach by Lessee.
Section 13 .4 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 Lessor, the proceeds
and awards in the condemnation proceedings shall be divided, and rentals required hereunder shall
be adjusted in such manner as shall bejust and equitable. If the Lessor 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 anycondemnation award, the matters then in dispute shall be submitted for detennination
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 forth in Section 3 . 7 (Termination of
Agreement for Airport Purposes).
ARTICLE XIV
Transfer of Interests
Section 14 . 1 Assignment by the Lessor. The Lessor 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 Lessor, 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 Assig
gning, 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 Lessor, which consent shall
not be unreasonably withheld, Any consent by the Lessor 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 Lessor shall have first consented thereto in writing. Neither Lessee ' s interest in this
Page 14
40
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 Lessor's prior consent, and Lessee shall notify the Lessor 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 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:
Wings Avionics, Inc.
Attn. : R . M . Schossow
P.O. Box 1099
Lowell, AR 72745
The Lessor 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 Agrecment � Modification. This Agreement expresses the entire
understanding of the Lessor and Lessee concerning the Leased Premises and all agreements of the
Lessor and Lessee with which each other concerning the subject matter hereof Neither the Lessor
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 Lessor and Lessee.
Page 15
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 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 Lm 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 Ma*eur . Neither the Lessor 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 tile
consent of the Lessor 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 ofthis section,
CC costs" shall include expert witness fees, and court costs.
Section 15 . 11 Binding Effect . This Agreement shall inure to the benefit of and shall be
binding upon the Lessor, Lessee and their respective successors and assigns, if such assignment shall
have been made in conformity with the provisions of this Agreement .
Page 16
IN WITNESS WI1ER_EOF1 the Airport and Iessee have executed this Agreement at
Fayetteville, Arkansas on the day of _ 1997 ,
City of Fayetteville
By
Fred Hanna. Mayor
ATTEST
Title: City Clerk
Wings Avionics, Inc.
By
Title:
ATTEST
Title-
Page 17
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CITY OF FAYETTEVILLE9 ARKANSAS
CODE OF ORDINANCES
91 -16 FLOWAGE FEES; RECORDS To BE KEPT.
(A) FuelsuppLiers. Any person supplying aviation
fuel or automotive fuel at the Fayetteville Municipal
Airport shall pay to the city a flowage fee of $0.05 per
gallon for aviation or automotive fuel delivered to the
Fayetteville Municipal Airpori. Such flowage fee shall
be in addition to the flowage fee imposed by division
(B) of this section. The supplier shall keep accurate
records reflecting the number of gallons of aviation or
automotive fuel delivered to Fayetteville Municipal
Airport each month and shall remit to the City Finance
Department by the I Oth day of each month the flowage
fee payable under this section, together with copies of
the supplier's bills of lading for the pieceding month
reflecting the number of gallons delivered to the
Fayetteville Municipal Airport.
(B) Petroleum product distributors. Any
petroleum product distributor supplying aviation or
automotive fuel at the Fayetteville Municipal Airport
(Drake Field) shall pay to the city a flowage fee of
$0.01 per gallon of aviation or automotive fuel supplied
at (he Fayetteville Municipal Airport (Drake Field). Said
supplier shall keep accurate records reflecting the
number of gallons of aviation and automotive fuels
supplied at the allWrt each month and shall remit to
the City Finance Director by the I Oth day of the month
the flowage fee payable under this section, together
with a copy of said supplier's records for the
preceding month reflecting the number of gallons
supplied at the airport.
(C) Scheduled aircraft carriers providing own
fuel. Any aircraft carrier providing its own fuel to its
own aircraft at the Fayetteville Municipal Airport
(Drake Field) shall pay to the city a flowage fee of
$O.OS per gallon on all aviation fuel and gasoline fuel
delivered to the Fayetteville Municipal Airport (Drake
Field) each month. Such aircraft carrier shall present
the city with bills of lading for all fuel delivered to the
Fayetteville Municipal Airport (Drake Field) and remit
the appropriate general aviation and gasoline tax by
the 101h day of the succeeding month.
('65 Code, § 2.A- 12) (Ord. 2639. passed 6-30-80; Am.
Ord. 2733. passed 6- 16-81 ; Am. Ord . 2874, passed
1 -4-83; Am. Ord . 3-69, passed 3-5-85) Penalty, see
§ 91 .99 EXHIBTT 11B11
LEASE AGREEMENT
BY AND BETWEEN
The City of Fayettevi Ile/Fayettevi Ile Municipal Airport
AND
Wings Air, Inc.
Fixed Based Operation
INDEX
ARTICLE I
Definitions
Paoc
1 . 1 Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1 . 2 Rules ol- Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ARTICLE 11
Temi
Tennof Agreement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
2 . 2 Options to Extend . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... . . . . . . . . . . . . . ?
2 . 3 Surrender of Possession : Holding Over. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
ARTICLE [ H 40
Lessor' s Granls� Reservations
3 . 1 Lease. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
3 . 2 QLliCt Enjoyment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
3 . 3 No Joint Venture or partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
3 .4 Terrilina( ion ofAgreenlent for Airport Purposes. . . . . . . . . . . . . . . . . . . . . . . . 4
3 . 5 MininlLull Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
ARTICLE IV
use
4 . 1 Use of the Leased Premises. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
4 . 2 General Use ofthe Airport . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — . . . . . . . . . . . . . . . 5
4 . 3 SCCLII-ity Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
4 . 4 Limitations on Signage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
ARTICLE V
Improvements to the Premises
5 . 1 Title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I . . . . . . . . . - . . . . . . . . . . . . . . . . . . . . . . . — — 6
5 . 2 Plans and Specifications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - . — . . . . . . . 6
5 . 3 11-- ffect of New Improvements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
5 .4 Removal and Owncrship of Air-port Structures on
LeasedPremise. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
5 . 5 Inspection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
1
ARTICLI" VI
Rcnuds, Fees and Chal (,yeq
6. 1 Rental Charge. . . . . . . . . . . . — . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
6 . 2 Landlord 's Lien . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
6. 3 Place of Payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
6 .4 DclinqLJC11CiCS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
6 . 5 Utility Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
ARTICLE VII
Maintenance and Care of Lcased Premises
7 . 1 Maintenance and Care ofLeased Premises. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
ARTICLE VIII
Indemnity and Insurance
8 . 1 Indemnity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
8 . 2 Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
ARTICLE IX
Complaints
9. 1 Customer Complaints. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
9 . 2 Grievance Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
ARTICLE X
Governmental RCqUirements
10. 1 Governmental Requirements - General . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . 10
10. 2 No Liability for Exercise of Powers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
10. 3 Nondiscrimination . . . . . . . . . . . . — . . . . . . . . . . . . . . . . . — . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
10.4 Taxes and Other Governmental Charges. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I I
ARTICLE X1
Events of Default
1 1 . 1 Events of Default Defined . . . . . . . . . . . . . . . . . . . . . — . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I I
1 1 . 2 Remedies upon Lessee ' s Default . . . . . . . . . . . . . 12
1 13 Non - Waiver. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
1 1 .4 Condemnation - . . . . . . . . . . . . . . — . . . . . . . . . . . . . . . . . . . . . . . . . . — . . . . . . . . . . . . . . . . . . . . . . 13