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HomeMy WebLinkAbout2003-04-29 - Agendas - Final • AGENDA FOR THE SPECIAL CALLED AIRPORT BOARD MEETING April 29, 2003 7:30 a.m. Breakfast Meeting at the Airport Terminal 4500 S. School Avenue 1 . Welcome. 2. Hangar Lease for University of Arkansas. 3. Adjourn. • i v F�� PPF � R • LEASE AGREEMENT 0� . a� O'b Hangar Lease University of Arkansas This Lease Agreement entered into this _ day of . 2003 by and between the City of Fayetteville, Arkansas, hereinafter referred to as the "City" and Board of Trustees of the University of Arkansas, acting for and on behalf of the University of Arkansas Fayetteville hereinafter referred to as University of Arkansas WHEREAS, the City owns and operates an Airport known as Fayetteville Municipal Airport - Drake Field, situated in Washington County in the State of Arkansas; and WHEREAS, University of Arkansas desires to lease from the City an aircraft hangar for use by the University of Arkansas, and WHEREAS, the City of Fayetteville, Arkansas has agreed to construct the hangar in the newly constructed executive ramp area of the Fayetteville Municipal Airport, and WHEREAS, the University of Arkansas has agreed to pay a lease amount equal to the cost of • construction on a straight-line, amortized basis over a 20 year period at an annual rate of 4.5% interest: NOW, THEREFORE, the Parties hereto agree as follows: 1. DESCRIPTION OF PREMISES. The City does hereby grant, demise and lease unto University of Arkansas Hangar Space Number(s) in aircraft hangar located at Municipal Airport-Drake Field situated in the City of Fayetteville, County of Washington, Arkansas. 2. TERM. ,The term of this lease is for twenty (20) years beginning on the first day of the next month following the date the Occupancy Permit is granted ( _ day of 2003), and ending at midnight the end of the previous-month in the year 2023 2023). A. Option to Extend. University of Arkansas shall have the option to extend the Lease Term of this Lease for one (1) period of Twenty (20) years if University of Arkansas has satisfied the following conditions (extensions beyond Fifty (40) years must be renegotiated and approved by the City Council): 1). University of Arkansas has complied with and performed all conditions, covenants, and terms of the Agreement without any defaults known to University of Arkansas, or any defaults that are not otherwise in the process of being resolved in the manner provided in this Agreement. • 1 • 2). Notice of University of Arkansas's request to renew has been made in writing to the City at least One Hundred Twenty (120) days prior to the expiration of the term. 3.) The amount of rental fees shall have been successfully negotiated and agreed to by the parties for the extended lease term. 3. RENTAL FEES. During the term of this lease, University of Arkansas agrees to pay the City a monthly rental fee equal to the cost for the City to construct the hangar amortized at four and one- half percent (4.5%) for 20' years (i.e. $400,000.00 @ 4.5% _ $2,530.60 per month). C_/month).. Rental is due, on or before the 1" day of next month following the date of the Occupancy Permit is granted ( 2003). A late charge of$ will be imposed on payments not received by the close of business on the tenth day after the due date. All payments shall be delivered or mailed to: City of Fayetteville, 113 West Mountain Street, Fayetteville, Arkansas 72701 . 4. UTILITIES AND JANITORIAL SERVICES. University of Arkansas shall be responsible for the payment of the utilities associated with the use of the leased premises including, but not limited to, electric, gas, heating, water/sewer, and trash removal to the leasehold. The City shall not be required to furnish to University of Arkansas any facilities or services of any • kind, such as, but not limited to, water/sewer, trash removal, electricity, or gas. Any such facilities or services required by University of Arkansas for their use and purposes shall be their sole and exclusive responsibility. 5. TERMS AND CONDITIONS. University of Arkansas agrees to comply with and abide by all terms and conditions set forth in this Agreement. 6, USE OF THE PREMISES. University of Arkansas agrees that the leased premises shall be used and occupied only as an aircraft hangar and for related lawful purposes. A._ Flammable Material. University of Arkansas further agrees not to store any flammable material on the demised premises other than a limited supply of oils and agents necessary for the operation of an aircraft hangar. Fuel in the airplanes is excepted. B. University of Arkansas shall not start or operate aircraft engines within the hangar leased hereby and shall not allow such operations by any other person. 7. USE OF THE AIRPORT. University of Arkansas is granted the use, in common, without charge, with others similarly authorized, 24-hour, 365 day use of the Airport, together with all facilities, equipment, improvements, and services which have been or may hereafter be provided at or in connection with the Airport from time to time including, but not limited to, the landing field • and any extensions hereof or additions thereto, roadways, runways, ramps, aprons, taxiways, flood 2 • lights, landing lights, beacons, control tower, signals, radio aids, and all other conveniences for flying, landings and takeoffs. 8. MAINTENANCE, REPAIR AND REPLACEMENT. The City shall maintain the leased PREMISES, including the building and all equipment, fixtures and appurtenances furnished by the City under this Lease, in good repair and tentantable condition, except in case of damages arising from the acts of the University of Arkansas' agents or-employees. For the purpose of so maintaining said PREMISES and property, the City may at reasonable times, and with the approval of the authorized University of Arkansas representative in charge, enter and inspect the same and make any necessary repairs hereto. 9. FAILURE TO PERFORM. The covenant to pay rent and the covenant to provide any service, utility, maintenance or repair required under this Lease are dependent. If the City shall breach any of the conditions required to be performed by it under this Lease, University of Arkansas may cure such breach and deduct the cost thereof from rent subsequently becoming due hereunder. If City fails to correct a deficiency within thirty (30) days after written notice from University of Arkansas, or within an appropriate shorter period stated in the notice, in the event of a deficienty constituting a hazard to the health and safety of the University of Arkansas' employees, property, or any other person, University of Arkansas may elect to terminate this Lease. • 10. DAMAGE BY FIRE OR OTHER CASUALTY. If the demised PREMISES are partially damaged by fire or other casualty, said PREMISES shall be repaired with due diligence by the City at City's expense. If the damage is so extensive as to render such building untentable, the rent hereunder shall be proportionally paid up to the time of damage and shall henceforth cease until such time as the PREMISES shall be fully restored. If the demised PREMISES are completely destroyed, City may reconstruct the hangar at City's own cost and the rent payable hereunder shall be adjusted as set forth above, or the City 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 . ALTERATIONS. The University of Arkansas may attach fixtures and install signs in or to the PREMISES with City's approval which shall not be unreasonably withheld. Such fixtures and signs shall remain the. property of University of Arkansas and may be removed from the PREMISES within a reasonable time after the termination of this Lease provided the University of Arkansas shall restore the PREMISES to a condition as good as at the beginning of this Lease, ordinary wear and tear excepted. No services or work will be performed for which an additional cost or fee will be charged by City without the prior written authorization of University of Arkansas. 12. TERMINATION. In addition to other remedies provided herein, .the University of Arkansas may terminate this Lease by thirty (30) days written notice to City if the University of Arkansas' funds are insufficient for it to continue the operations for which the PREMISES are being used. • 3 • 13. SPECIAL PROVISIONS. A. City shall be responsible that this facility conforms to the Arkansas Fire Prevention Code, as amended, Arkansas State Plumbing Code, the National Electrical Code, and any other state and local laws, codes, authorities, etc., applicable to the leased facility including the Arkansas adopted Americans with Disabilities Act Accessibility Guidelines for Buildings and Facilities (ADAAG). B. City shall maintain and keep in good repair so much of the Airport premises as is not under the exclusive -control of individual lessees. C. University of Arkansas 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. D. University'of Arkansas agrees to observe and obey City's ordinance 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 rules, regulations and orders of the Federal Aviation Administration with respect to aircraft operations at the Airport. E. City authorizes University of Arkansas to use the PREMISES only for the storage of airplanes and materials and equipment necessarily related to the operation of said • airplanes and that no other vehicles, equipment or supplies shall be stored on the PREMISES unless expressly agreed to by City; provided, when LESSEE'S airplane(s) are on a flight, automobiles utilized by the pilot and passengers may be stored on the PREMISES. University of Arkansas further agrees not to store any flammable materials on the PREMISES or in any way endanger or violate the provisions of LESSOR'S property damage. insurance policy or the requirement of same. Such violations shall constitute a material breach of this Agreement. F. University of Arkansas further agrees that it shall only be permitted to engage in minor maintenance on the airplane stored in the building and shall not engage in any major overhaul of the airplane within the leased PREMISES. G. University of Arkansas shall procure and maintain in force during the term of this Agreement, fire and extended coverage insurance on University of Arkansas' aircraft in the amount equivalent to the replacement cost thereof. University of Arkansas shall also be required to insure any contents within the aircraft hangar. H. All claims of damages regarding University of Arkansas' liability for injuries and/or contractual breaches or defaults shall be submitted to the Arkansas Claims Commission for adjudication. I. University of Arkansas shall maintain the demised PREMISES in a clean and orderly • 4 • fashion at all times. J. University of Arkansas shall not start or operate aircraft engines within the aircraft hangar hereby leased and shall not allow such operation by any other person. K. University of Arkansas shall not be responsible for the payment of any taxes or assessments for the PREMISES. 14. EVENTS OF DEFAULT. 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. University of Arkansas shall fail to pay when due and owning any rentals hereunder and such nonpayment shall continue for twenty (20) days after written notice thereof by the Airport; B. University of Arkansas voluntarily shall abandon, desert, or vacate the Leased Premises; C. University of Arkansas shall fail to comply with insurance requirements imposed hereunder; provided such noncompliance shall continue for twenty (20) days after written notice thereof by the Airport; • D. University of Arkansas shall fail to observe or perform any other of its material obligations hereunder, and such failure shall continue un-remedied for twenty (20) days after the City shall have given to the University of Arkansas written notice specifying such default. Provided, the Airport may grant University of Arkansas such additional time as may be reasonably required to correct any such default if University of Arkansas has instituted corrective action and diligently is pursuing the same; . 14, REMEDIES UPON UNIVERSITY OF ARKANSAS' DEFAULT. Whenever an Event of Default of University of Arkansas shall occur, the City may pursue any available right or remedy at law or equity including: A. Termination. At its exclusive option, the City shall deliver to University of Arkansas written notice of termination with a minimum of 30 days notice, specifying the date upon which the Agreement will terminate. In the event of termination, University of Arkansas's rights to possession of the Leased Premises immediately shall cease. The City may then reenter and take possession of the Leased Premises and University of Arkansas forthwith shall surrender possession of the Leased Premises. Upon termination of this Agreement, University of Arkansas shall be liable for payment of- 1 .) f1 .) All sums accrued through the date of termination. • 5 • 2.) The reasonable cost incurred by the City to restore the Leased Premised or any portion thereof to the condition in which they originally were leased, ordinary wear and tear excepted. 16. EXPIRATION OR TERMINATION. On the expiration or other termination of this Lease, University of Arkansas 's right to use the leased Premises shall cease, and University of Arkansas shall vacate the premises without unreasonable delay. All property installed, erected, or placed by University of Arkansas in, on, or about the leased Premises shall be deemed to remain the property of City. University of Arkansas 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 thirty (30) days after the expiration or other termination of this Agreement, to remove any or all of University of Arkansas' property, subject, however to University of Arkansas' obligation to repair all damage, if any, resulting from such removal. 17, TERMINATION OF AIRPORT. In the event that the Fayetteville Municipal Airport facility and property are no longer used for aviation purposes, the University of Arkansas may remain in possession of the premises until the end of the lease term with the right to use the premises for any use allowable under Arkansas law; or University of Arkansas may elect to terminate the Lease Agreement with no further charges. 18. NON-WAIVER. Neither the waiver by either party of any breach of the other party of any • provision hereof nor any forbearance by either party to seek a remedy for any such breach shall operate as a waiver of any other breach of either party. 19, NOTICES. Any notice or consent required by this Agreement shall be sufficient if sent by fax, Certified Mail, return receipt requested, postage paid, or personally delivered to the following addresses: CITY OF FAYETTEVILLE: UNIVERSITY OF ARKANSAS Airport Administration Office University of Arkansas 4500 8. School Avenue, Suite F 321 Administration Building Fayetteville, Arkansas 72701 Fayetteville, Arkansas PH: 479-718-7642 PH: 479-575-2551 FAX: 479-718-7646 FAX: 479-575-4158 21 . This Lease Agreement expresses the entire agreement of the parties and may only be amended in writing signed by all the parties_ hereto or their duly authorized agents. IN .WITNESS WHEREOF, the parties have executed this lease on the day and year first above written. • 6 • CITY. OF FAYETTEVILLE, ARKANSAS By: Dan Coody, Mayor ATTEST: By: City Clerk Board of Trustees of the University of Arkansas acting for and on behalf of the University of Arkansas at Fayetteville: By: Ann Kemp Vice President for Finance & Administration Title • ATTEST: By: Title: • 7