Loading...
HomeMy WebLinkAbout2006-10-11 - Agendas - Final AGENDA • FAYETTEVILLE MUNICIPAL AIRPORT BOARD 1 :30 p.m. Thursday, October 11, 2006 Airport Terminal Conference Room 1 . Welcome and Agenda Review — Chairman Bob Nickle. A. Comments from the public on items on the agenda. 2. Presentation of award to the Airport Board: Arkansas Department of Aeronautics and Arkansas Airport Operators Association "Airport of the Year 2006". 3. Minutes of the September 13, 2006 meeting. 4. Receiving of Reports. A. Bob Nickle, Chairman. B. Ray Boudreaux, Director C. James Nicholson, Financial Coordinator. D. Louise Powers, T-Hangar Report. E. Construction Report. F. Maintenance Report. 5. Old Business. • A. Lease for terminal rental space with "Rose of Sharon". Action Requested: Approve and forward through the City's Contract Review and signature of the Mayor. B. Presentation: Ride-n-Boogie. C. Self-Serve Fuel Formula change. Action Requested: Approval of the Airport Board. 6. New Business. A. Hangar Ground Lease with Live Oak Development. Action Requested: Approve and forward through the City's Contract Review and the signature of the Mayor. B. Hangar Ground Lease with Woolsey Aviation. Action Requested: Approve and forward through the City's Contract Review and the signature of the Mayor. 7. Other Business. A. Items from the public. B. Items from the Airport Board. 8. Adjourn. Note: Strategic Planning Meeting: _October 25, 2006 @ 1 :30 • Next Airport Board Meeting: November 8, 2006 @ 1 :30 Rt\F'. S'rgT STATE OF ARKANSAS °�'j�•LP�F° DEPARTMENT OF AERONAUTICS e � > y Q A ry �" � a Little Rock National Airport • One Airport Drive a 3rd Floor Little Rock, Arkansas 72202-4402 Telephone: (501 ) 376-6781 • Fax: (501 ) 378-0820 MIKE HUCKABEE JOHN K. KNIGHT GOVERNOR DIRECTOR September 26, 2006 Commissioners Darryl Riddell MEMORANDUM West Helena Marion Burton Little Rock Dr. Gene lines TO: Arkansas Airport Operators Association Little Rock FROM: John K. Knight, Director Gary Jackson Arkansas Department of A nautics Rogers ' Don Ruggles RE: 2006 AAOA Airport of the Year / Fayetteville Drake Field Texarkana Mr. gay Boudreaux, Manager Lindley Smith The Honorable Dan Coody, Mayor Jonesboro Ken Johnson 1 . Ability to expand facility to meet growing economic demands of Fayetteville and Pine Blutr • all the Northwest Arkansas Region. 2. Meeting these demands thru a partnership with local, state and federal government fundine. 3 . Many safety and security upgrades have been completed recently along with a newly renovated Terminal Building (completed and opened during the past year). Along with the updated master plan and the Terminal Building project, other completed projects include several thousand sq. ft. of hangar area housing aviation businesses. Taxiways and aprons were also constructed to provide access to the business hangar area. 4. Excellent communication between Airport Management, City/County Officials, FBOs, and aviation users has been the key to success for Fayetteville Municipal Airport. 5. Overall excellent management and operation by City of Fayetteville in conjunction with all aviation business users. Wise use of all available funding to complete projects to FAA/State specifications. The following airports have been selected "Airport of the Year" the past 8 years: • 2005 Marianna/Lee Co. Airport 2001 Little Rock National Airport 2004 Stuttgart Municipal Airport 2000 Hot Springs Municipal Airport 2003 Searcy Municipal Airport 1999 Northwest Arkansas Regional Airport 2002 Rogers Municipal Airport 1998 West Memphis Municipal Airport � ■ 0 \ $ \ 2 ¢ / 0 $ kk k � % 22 � $ _ (D C3 22 2 © � . . 1:z cc co to220 / \ \ k k f ( 2 cx & ZL � eq ° � k � # q k ( � A4 \ Co 4c C4. © � 3 � � E & a) � x � � 2 � \ w 4 mte F © � coe@ S E E S 2 2 ° * W / / 72 toP61 \ � f ° eA \ 2 � $ 0 Ei I @ / o CZ m o CO\ mac § -a / . % § § ooC z 3qt LLc / % / § : . . � ƒ . . . _ u � � r , MINUTES OF THE FAYETTEVILLE AIRPORT BOARD MEETING September 13, 2006 • MEMBERS PRESENT: Bob Nickle, Otto Loewer, Janice Stanesic, David Hollman, Richard Greene, Dave Bowman MEMBERS ABSENT: Vaughn DeCoster STAFF PRESENT: Ray Boudreaux, James Nicholson, Louise Powers OTHERS PRESENT: Cherie Boudreaux-citizen, Wayne Jones-McClelland Engineers, Thea Daniel-Rose of Sharon, Terry Collier-citizen, Kathy Moore and Mark Frankum-SkyVentures Aviation, Frank Burggraf-former Airport Board Member, Susannah Patton- NW Ark. Times, Tyron Ryan — Government Channel TV ITEM #1 : Welcome and Agenda Review — Chairman Bob Nickle. Welcomed all and invited comments on the agenda items. T. Collier reminded everyone of the FAA Safety Meeting next Monday at the Airport. Chairman Nickle said Julie Netherton, FAA Certification Inspector is on site and conducting the annual certification inspection. ITEM #2: Minutes of the August 10, 2006 meeting. A motion to approve the minutes was made by Dave Bowman and seconded by Richard Greene. The motion carried. • ITEM #3: Receiving of Reports. A. Bob Nickle, Chairman. Reconized Frank Burggraf in the audience; former Board Member with a long interest in the Airport. Director Boudreaux answering Chairman Nickle said all permits are in for the bike event at the airport. They will pay $5,000 base rent and $500 clean up deposit. Several restaurateurs have looked at the terminal with no commitments. B. Ray Boudreaux, Director. Reviewed his monthly report, calling attention that Drake Field was the second busiest airport in the state again this month. He thanked SkyVenture and Million Air for increasing the operation numbers. Told that the Forest Service had used the east ramp last month; they use jet and AvGas and it takes 2,000 gallons to fill up. Million Air and SkyVentures each had their Grand Openings. The parking lot resurfacing contract is on the City Council's consent agenda. The Aviation Tech Center is moving out of their facility at the end of the month, moving to NWACC's new Fayetteville campus. C. James Nicholson, Financial Coordinator. Operations are ahead of all previous months, and predict will exceed when the airlines were here. Fuel sales have increased every month. The usual 20/80 break on the fuel sales changed with additional AvGas sales. Chairman Nickle noted that Million Air sold twice as much AvGas as the self-serve. Million Air will be here one year in September. J. Nicholson said he had added another column in the Financial Report: Draft 2007 Budget. He reported the projected year-end was tracking close to the budget. When the airlines left it was predicted the airport funds would last five years and we have gone beyond that with some reserve funds remaining. Director Boudreaux said he and James had met with the Mayor and the new CFO at the City and discussed the airport's situation, cost allocations and the • airport's objectives. O. Loewer said you can `spend money' , we have and we have something to show, our operations are an indication. D. Louise Powers, T-Hangar Report. We have one twin hangar vacant, we have worked through the waiting list for twins and working one the single engine waiting list. All others are 1 rented. O. Loewer suggested posting the availability of space on the website, it may take a while but people will get used to looking there. He suggested using.the website for promoting the airport, look at linkages to other airport businesses and theirs to ours, helps keep the public informed, use the charts to promote the airport, declare victory. Chairman Nickle suggested • using the Advertising and Promoting Commission to promote the airport as one of the gateways to Fayetteville. • E. Construction Report. W. Jones reported the construction company is replacing the odd shaped slabs, fifty to sixty joints are sealed, top soil has been placed around the perimeter, and fencing is scheduled for next week. We will have Don Harris, FAA Project Manager come for the inspection. Design is under way for the corporate hangars. Communication has already started on the changes for the Master Plan. There will be seven large plan sheets, including the Airport Layout Plan (ALP). This will be submitted to the FAA and City for approval. When completed there will be twenty-five sets delivered to the Airport, for distribution throughout the City and one CD. Director Boudreaux reported he had another client interested in building a hangar on the west side ramp. F. Maintenance Report. Director Boudreaux reviewed his agenda report, commenting staff had been working getting ready for the FAA Certification Inspection. The Inspector is here and will be checking over the airport facilities and paperwork for the next few days. Chairman Nickle and the Airport Board set October 25th' at 1 :30 pm for the next Strategic Planning Meeting, and October 11`h at 1 :30 pm for the next Airport Board Meeting. One item to be discussed at the Strategic Planning Meeting will the Board's involvement and position in the Air Show. O. Loewer mentioned considering at some planning meeting, the Airport's Mission Statement, take a look at marketing the airport, where we've come in five years and positioning ourselves for the next step. ITEM #4: Old Business. • A. Airport Master Plan. A motion to approve the Master Plan with the needed wordsmithing and filling in the operations numbers for the past five years was made by Dave Bowman, and seconded by David Hollman. The motion carried. B. Airport Budget for 2007. A motion to approve and forward the 2007 budget to the City Council for approval was made by Otto Loewer and seconded by Janice Stanesic. The motion carried. ITEM #5: New Business. A. Fuel Flowage Fee Ordinanace. Director Boudreaux explained the flowage fee shown in the Fayetteville City Ordinance is six cents. We negotiated 10 cents in Million Air's lease. The Ordinance needs to be brought up to date and he proposed increasing it to eleven cents, which would increase the budget by $5,000.00. Discussion followed whether that one cent would increase the fuel price, Million Air's expectations according to the lease and the Airport's good intentions, whether the $5,000 would create ill-will, and needing to be more sensitive. Director Boudreaux stated that in the meeting with the Mayor and the CEO, they expect us to raise rents and prices to meet the budget. Chairman Nickle said he had reviewed the operations for the last two years, the electrical bill expense has increased 25%, salaries are up 9% over last year, some • up these costs have to be passed along. The paper work needs to be cleaned up for the Ordinance. 2 A motion to change the Ordinance to show a flowage fee of ten cents, with the Airport Board's understanding that it needs to be raised later, was made by Richard Greene, and seconded by Dave Bowman. The motion carried, with one Board Member abstaining. • Director Boudreaux presented a request to change the pricing formula for the Self-Serve fuel to increase the profit margin. Chairman Nickle related the formula had been in place since the self- serve was installed and last year we voted to give Ray permission for an adjustment, the formula does not recognize the true cost. An adjustment would allow the formula to cover the cost of maintenance. M. Frankum stated the reason that SkyVenture chose to locate at FYV was the option of buying fuel from Million Air or the self-serve. He offered the opinion that changing the formula would impact the price they pay at Million Air. A motion to table changing the pricing formula for the self-serve fuel was made by Richard Greene and seconded by David Hollman. The motion carried. B. T-Hangar Rent Adjustment. Director presented a request to increase the rent on the T- Hangars beginning January 1 , 2007. The approximate increase for each would be about $20.00. Chairman Nickle related the cost to maintain the T-Hangars needs to be addressed, maintenance of doors and roof, installing new light fixtures cost twice what was originally planned, and the increase in electricity cost. Increasing the cost by the CPI does not reflect the cost to operate, it has gone up more than the CPI. A motion to accept the increase as defined in the report, effective January 1, 2007, was made by Otto Loewer and seconded by Richard Greene. • R. Greene commented that it is the responsibility of the Board to maintain and upgrade the facility, we can't let things go because it will hurt someone's feelings, we have to continue to be viable. The motion carried. C. New Lease for terminal space: Rose of Sharon. Director Boudreaux said Thea Daniel, owner of Rose of Sharon has asked the item to be pulled this month. She will come back another time before the Board. T. Daniel said she is an event florist, does weddings, grand openings and needs a place to meet clients and to do some floral arrangements, it would not be a walk in store. ITEM #6: Other Business. A. Items from the Public. W. Jones said all proposed costs from the Master Plan have been forwarded to Don Hams (FAA Project Manager, Fort Worth) and he has put them into the system with the dollar amounts. Director Boudreaux said the estimated cost to move the runway is $4,000,000, this is a safety item for the north end of the runway. B. Items from the Board. None. Meeting adjourned at 3 :23 pm. • Dave Bowman, Secretary Date 3 FAYETTEVILLE AIRPORT ADMINISTRATION OFFICE THE CITY OF FAYETTEVILLE, ARKANSAS Z QUARTERLY REPORT THIRD QUARTER CY 2006 AVIATION AND ECONOMIC DEVELOPMENT DEPARTMENT FAYETTEVILLE, ARKANSAS October 4, 2006 AVIATION: • Fayetteville Municipal Airport, Drake Field was selected Airport of the Year 2006 by the Arkansas Department of Aeronautics at the annual Arkansas Airport Operators Association Conference in Little Rock. The letter from John Knight, Director of Arkansas Department of Aeronautics cited the "overall excellent management and operation by the City of Fayetteville in conjunction with all aviation business users." And, "Excellent communication between Airport Management, City/County Officials, FBO's, and aviation users has been the key to success for Fayetteville Municipal Airport." • At the end of August, Fayetteville Municipal Airport, Drake Field led all airports in Northwest Arkansas in annual operations to date and was second in the State only to Little Rock National. At the end of the Third Quarter, our airport was the third busiest in the • State behind Little Rock and Northwest Arkansas Regional. The decrease in operations can be attributed to the several bad weather days during the month of September and was equal across the board. Both local flights and transient flights experienced a decrease of 500 operations for a 17% decrease. • Fuel sales again broke 50,000 gallons for the month for the fourth time this year. Through only three quarters of the year, fuel sales have exceeded total sales for 2005 by more than 18,000 gallons. Million Air should exceed 500,000 gallons of fuel sold in 2006. • The USDA Forest Service conducted aircraft operations for the first time on the newly constructed Forest Service apron. They operated a P-2 Neptune fire bomber. The aircraft uses AVGAS as the primary fuel and Jet as a secondary fuel. The Tanker Base Manager, Mike Harrison, reports that he has seen as many as 8 aircraft at one time, at one location, fighting fire. The apron is ready. • The grand opening of the newly renovated lobby was a great success by all measures. The building was packed and everyone had a good time. Million Air provided excellent food and atmosphere and Roger Woolsey presented his vision of the future for Million Air Fayetteville. The future looks bright! • SkyVenture Aviation, Inc. cut their ribbon as well. A great crowd celebrated the opening • of our new first class flight school. SkyVenture offers basic flight instruction and instructor qualifications in both single and twin aircraft. The company is a Cessna Pilot Center and Sales agent for new Cessna aircraft. 4500 SOUTH SCHOOL AVENUE, SUITE F • AIRPORT TERMINAL BUILDING • FAYETTEVILLE, AR 72701 PHONE 50 1 -718-7640 Ext. 5 • FAX 50 1 -718-7646 • • The West Side General Aviation Apron Project is complete except for the electric gate. The gate will be installed early in October. • The Ride-N-Boogie motorcycle event was conducted on the new West Side General Aviation Apron the last two days of the quarter in conjunction with Bikes Blues and Bar- B-Q. The Airport leased the space to the promoter for a flat fee. • The final review of the Airport Master Plan Update was completed. The plan was forwarded to the consultant, Kelly Maddoux from airport consultants Barnard Dunkelberg and company for final distribution. The Airport Board approved the report at their September meeting and the "final draft" has been forwarded to the FAA for their acceptance. It remains a final draft until accepted by the FAA. • The City Council approved the low bidder and the project to seal the cracks and apply a rejuvenating compound to the Terminal Parking Lot. The low bidder was Time Striping, Inc. We will re- stripe the lot once the rejuvenating compound cures. • AATC has moved its operation to the Regional Technology Center (RTC) campus former site of the Fayetteville School's West Campus. They were scheduled to be out of their current building on the airport by the end of September. They will be out and ready for a • final inspection at the end of the first week of October. The building will be difficult to reuse as there is a two story classroom building inside the hangar. We will be looking for suggestions for reuse options. • The Little Rock FAA/FSDO held a Safety Seminar at the Airport Terminal from 7:OOpm until 9:OOpm September 18, 2006. It is the first such event at the airport in more than five years. FAA and all were surprised by the turnout of more than 50 pilots and interested individuals. The event was sponsored by the Airport and Sky Venture Aviation. The have already scheduled another safety meeting at Drake for November of this year. • The State of Arkansas published the State Airport System Plan 2006 which concluded the economic impact of our airport to be $34,043,600.00 each year. The total impact of all general aviation airports in the state was reported as $494,459,900.00 each year. • The FAA will begin the installation of the Runway 34 PAPI. The PAPI is a pilot approach aid that uses lights to indicate to the pilot whether or not the aircraft is on the proper glide angle to the runway. The lights tum red if the aircraft is low on the glide path and white if the aircraft is high. On glide path the lights are red and white. The south end of the airport has never had a pilot landing aid. • The annual FAA Part 139 inspection was conducted by Julie Netherton from the • Southwest Region of the FAA in Ft Worth. There was one reportable item involving live fire training for the fire fighters that would be responding to commercial aircraft with more than 30 passenger seats. The new Part 139 requires even Class IV airports to conduct live fire training annually. The fire department has scheduled the training for mid • November in Ft. Smith. • The State Department of Aeronautics approved the second Hangar Grant request so the money is in place to construct the two corporate hangars on the new West Side General Aviation Apron. Other parties are also negotiating to build three additional hangars on the apron. We could have five hangars under construction by the first of the year 2007. • We attended the Arkansas Airport Operators Association Conference in Little Rock. ECONOMIC DEVELOPMENT: • We continue to work with FEDC with a prospect for the Industrial Park. A fourth visit is scheduled. We are very hopeful. • We are still working on the Economic Development Data project with the U of A and the FEDC. We have a final contract but we are not satisfied with the deliverables. • We attended the Arkansas Economic Developers Conference in Ft. Smith. • We participated in the Citizens 4 Fayetteville campaign to inform the electorate on the value of the bond issue to support the waste water system and transportation • improvements. We were thankful that many joined the team and the election was a landslide. • We have received application to purchase Parcel 20W by Mayflower Moving and Storage. We are working the sale through the process. Res a Submitted, Ray M. Boudreaux, Direct • Tae • ARI KANSAS Airport Progress Report TO: Fayetteville Municipal Airport Board THRU: Ray M. Boudreaux, Director FROM: James Nicholson, Financial Coordinator DATE: October 11 , 2006 Tower Operations: OPERATION5 - MONTHLY 2000 - 2006 02000 0 2001 a B 2002 c° 02003 92004 $ 02005 6 ■ 2006 L H 4 2 I I I I I JAN FEB MAR APR MAY JUN JUL AUG SEP OCT 140 DEC • 02000 1 ,266 1 ,735 1 ,681 1 ,613 1 ,472 2,251 1 ,858 2,151 2,132 1 ,951 2,172 1 ,479 02001 2,355 2,330 2,821 2,634 2,901 4,293 3,549 3,741 2,377 2,770 2,482 2,356 02002 2,155 2,266 2,215 2,282 2,304 3,487 2,264 2,920 3,628 3,168 3,282 2,630 02003 3,122 2,379 2,908 3,360 3,317 5,378 4,347 3,674 4,279 4,567 3,084 3,451 w2004 3,443 3,688 4,270 4,570 4,325 5,312 4,223 3,885 3,828 2,796 2,168 2,729 02005 2,262 2,702 3,104 3,505 4,681 6,068 4,583 4,068 4,066 4,682 3,577 3,474 ■ 2006 3,932 2,811 1 3,051 1 3,297 4,167 1 6,934 1 6,316 1 5,260 4,367 - - - OPERATION5 - CUMULATIVE 2000 - 2006 50 0 v ❑ 2000 40 0 2001 i M2002 30 02005 M2004 132005 20 ■ 2006 10 rq� al nil JAN FEB MAR APR MAV JUN JUL AUG SEP OCT NOV DEC ❑ 2000 1266 3001 4682 6295 7767 10018 11876 14027 16159 18110 20282 21761 02001 2355 4685 7506 10140 13041 17334 20883 24624 27001 29771 32253 34609 02002 2155 4421 6636 8918 11222 14709 16973 19893 23521 26689 29971 32601 • 02003 3122 5501 8409 11769 15086 20464 24811 28485 32764 37331 40415 43866 ® 2004 3443 7131 11401 15971 20296 25608 29831 33716 37544 40340 42508 45237 02005 2262 4964 8066 11573 16254 22322 26905 30973 35039 39721 43298 46772 ■ 2006 3932 6743 9794 1 13091 17258 24192 30508 35768 40135 • FBO Fuel Sales Charts: FUEL SALES - MONTHLY 2001 - 2000 80 0 c a 00 a $ 40 ~ 20 ILII III � 0 ° - I.U1 , JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC ■ 2001 18028 10457 18815 19285 10530 10530 10530 15607 20493 25112 22362 26266 o2002 29321 26284 14906 23949 14892 41512 18285 20400 39365 29447 24570 =j 02003 31522 28464 34128 30293 27200 32305 21665 . 30298 27492 51528 25292 B 2004 38643 26837 .28109 35084 29510 28176 21234 31334 43730 36161 22490 02005 42936 29563 32178 28253 28113 36188 22233 28466 33177 46837 38255 02006 41 ,134 39,899 50,869 38,505 58,253 61 ,495 33,797 41 ,490 53,338 - - FUEL 5ALE5 - CUMULATIVE 2001 - 2006 500 0 c • c 400 g � 300 L 200 I L � 100 ° JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC ■ 2001 18028 28485 47300 66585 77115 87645 98175 113782 134275 159387 181749 208015 02002 29321 55605 70511 94460 109352 150864 169149 189549 228914 258361 282931 304547 0 2003 31522 59986 94114 124407 151607 183912 205577 235875 263367 314895 340187 366979 B 2004 38643 65480 93589 128673 158183 186359 207593 238927 282657 318838 341328 371361 0 2005 42936 72499 104677 132930 161043 197231 219464 247930 281107 327944 366199 397497 0 2006 41134 81033 131902 170407 228660 290155 323952 365442 418780 - - - Survey of Fuel Prices : Fuel prices within 50 miles of FYV as of 10/10/06 [dent FBO Name Jet FS 10OLL FS 100LL SS 87 MoGas FSM TAC Air 4 .29 4. 17 3.63 SLG City of Siloam Springs 3 .98 4. 15 3.68 TQH City of Tahlequah (both selfserv) 3 .59 3.69 FYV Million Air Fayetteville / City SS 4 .29 4 .49 3.85 2.42 VBT Summit Aviation 3 .99 4 . 10 3.95 • ASG Pinnacle Air Services 4 .16 4 .23 3.99 ROG Beaver Lake Aviation 3 .66 4. 12 XNA Regional Jet Center 3 .98 4 .25 �f FBO Statistics: September 2006 Million Air Category Gallons % Category % TOTAL Jet Fuel sold to FVY-based customers 22,678 52.7% 42.4% Jet Fuel sold to itinerant customers 20 ,356 47 .3% 38 .0% Total Jet Fuel Sold 43,034 85.9% 80 .4% 100LL sold to FYV-based customers 24839 40 .2% 5.3% 100LL sold to itinerant customers 41224 59 .8% 7.9% Total 10OLL Sold 78063 14 . 1 % 13.2% TOTAL ALL: 50,097 93.6% City Category 100LL sold Self-Serve 34241 94 .3% 6 .1 % • 87 Octane MoGas sold Self Serve 195 5.7% 0 .4% TOTAL ALL: 34436 6.4% 10OLL 100LL sold self-serve 30241 31 .5% 6. 1 % 100LL sold Million Air FBO 70063 68 .5% 13.2% TOTAL ALL: 101304 19.2% . � . moo / { ƒ ( + . . � \ ( � \ \ \ i C6 } \ _ 2 ) m © » § 7 � 2 g q / / } k [ \ \ � / \ / } } m \ dJ ¢ # # § ( � 0NN m \ - , 2 ( \ ' ( m k ) ( § � \ \ k } \ § +L6 C6 L6 ci 4 k \ ® & k { _ / ■ 0 \ f » « « ! f £ . � ! § t � . } \ ) § � 0 w - k ! « g § \ az _ f c ! e . . � § / ! ) 0wT f { ) } ) \ 0 # 12 { Jka � , 0 { CL < & ( $ \ ¥ % { 0 } \ / 0 / kf • m m o o o 0 o p m p pp o W v m V A N N W W f7 N W th n w n O m V N W N N f+f N ' n A O O W N N O O N m N N W cp } 00O aWp m m mmvm4D N o N v N W .�A- M ID N v N n O a` * IxINI � IN cpi. o uWi N �00 W " n rn m N V O t0 p ' �.Wj cwi f0 N eD O O 0; L6 N: td C6 IN W N W O O O t0 N W t7 N W ch M t0 N m O Q N M r h K W O (7; m O N C W C3 W0 o N ' WNNmW O W N W d v M m O p W p IN cri N O cp cNV_ Oj vO) V N O CS WT Nm Q • m W � ' n O> O) W O � r c7 L6 fV a0N W cV W M f7 OFj O h V N O In0 Op) p N Q V A ^ M N N N N cWO ar o NW t7R M O n d N W N m W m M W �} O W N A Q W aD p N m V N N m N N mo N O W v V l0 A r (h W $ W A O W N W O T1 AO O Nn L6 C6 aD W v N Q th W N V IN rzW O � N � C mR O LL 0 f0 ly ¢ m 7 O mW N . Q V C C d j N G N My C . d j > N O a L C d 0 N t0 - I Ec ' ca�Oi � m E ,Q, m Ua� U ��p 0MU m m -d W d J W LL -ry ..0 _ Ol .- aCi m li "5 U c U a`> Z Y 15 L >y aI C CC f0 C 6 C N C N O N >� N Tmy o � y o A ¢ d 'm W 0 0< a0i �m � � � o • LL 0 � � > C W N a �"y m "> N O R a F n C N U Q O l 0 F 0 0 L p . � . . $ p § 2 { i ( + § kkj \ \ � § \ © { k } k cNi P (iC k § § § 7 9a ® ci IL - § ! 2 « # - $ § r§ ( k § \ \ v } /�m \ Om \ ca / � # (6 C6 C6 06 # f � { M § 04 C6 6§ q d ) \ i \ Cli _ $ ( i ( § / 9k \ Ak / ( 9 ® m \ ( a ! a # RG L6 C6 \ Ld) � ( 2 § � ( / 3 § k * ¢_ »! /o§® , f/ k ; }{ \2 `} j { { - WLmco _ { § \ ) f2a § ! 7 mOf ) a ; .c8 t _ k { lka � ! a ) � ] ; aa ; 0 < 0 & & / \ / } \ / ° mE ` # / o 2 � . moo O m 't m O N N N aD W l") O M O j N M N N W .- 0 N N ri Nm � N M MNNm ' f� N 00 O � .N. l0 � 0 W } p 0 c ONi (Np p N GsD O IC m N p (p O O O aD tf) N N mG Q (q � M N m O u V O N� mop V 1� '- NMN .- M N N N WN f� N .�.- N N l7 'O aDR Q. M apo N V O < R (vNj ('> (p pN N OhN N th N tt++ff (V W OOOi N t N m Q ¢ Nom O 0 O mm Ot m N N N N (�J N (OD M M tND N ONi O V m p 7 rCof lo N D M r h N N O N O N M ui J N GI ... lo w m o w N N O O A pp p N N NO < m n O V � NNNe� p O yy N N tD N O (NO ry • S C O O N N p 0 N l V p N O�j O u O N r N N ON ci (7 N MN �I ' N N cy O ¢ N m N N N d w N i N t 0 A M moo O N O Nm N W Ns� t+pJ M � N .�- N N O O N h N N 0 J pp L6 R t6 &TZ v l0 N h .- epj ON N p � ^ O N th N aaNpp fz tG eC u'i Oi � � v N O D M C O O LL d m E p ' N pj E1 N � O n1 Q d NL m (� W W O N Y N U b �J ,YNmNN pcom ¢NdJm> d d a _ «60 m_N N AiL a E L 00 EoOUUX N - UwddWmJ > u 2 c m c y o L' omo Qd oo w @mo (J ¢ Oti O O o L o F U ,� � \ M co cu 0 f $ LL k } k g ° a f m 7 m0 af ! % § - } K - ) ) kk ƒ \ \ \ \ \ � j \ \ j \ § k = 0 Cl ( kj 2 ° _ « ] 7 = ) � § £ � § � - 0 =3 ■ % ; | § Et Fe � / � - ° ° � 2 \ m ° jj ) / E )2'5 ' 27 ) ] # / LU � ) cx§ � f ) \ \ ff § \ \ § \ 22 < « « « « ) « < I � o0 ƒLO \ mac « ; rl & ƒ f ƒ ƒ 3if ƒ ] f } \ ) } � \ 45 r. I ) ) \ \ } } 2 � wwww0J ƒ JJ / Q - - - = - - - ' - - q C ! < o E0 � £ � t )r- mCa \ 00 , C, %� 22 / � > k &[ ek . E ° ak � a00 � � §W _ GM � - k ® � ! E27 � � - '42o , � 7t E % }] E} « / e � k� \ k§ � a § f � n » C CL 2 _ :� _ em / ag £ I = 2f {mkj * §) 0U L =w ( G� @ ]oc f « 0 0kkk ; � � ) £ E- \ ] E ] k ) ) $ M= _ _ m = 0 U 7 d V d N m N E2 Q. V d a m a) y jY N N 'O Uca 0 C m m Y .0. 0 O a E Y v 3 m E �' c ami c 0 Q o m y 'D Q O Q — y 'D L a) � L U ym0 Emmmvv) a) m0) � dmdvd v � � d JE vma) d d 020 d m c m «. d d d m d m d d d d m m m m y m � v .m o - - = .� - - - .� - - - m m .,� .m — - - - m - - - n` 3 y E E o 3 a E E E E E E — E — E E E E E E E0 m 0 0 d o o o m d o 0 o d o 0 0 d 0 d d m 0 0000 0 0 0ca Of L ZW Ir UUd' Z � UUU ixUUUd' U Q' 2' 2 U UUU Q' UUU Q ¢ QQgQQ � gQg � ? � ' � � � � � X22 Ir a0 O t0 N CO N N N t0 )O co fO r N 0) O 0) r N N a r 00 O) N N m to N M r M N N N ('7 N a Q. C �. L L L fa = m m m m m m m m m m m m C m C Q Q Q Q Q Q Q Q m Q Q Q -Oj A n O n N N N fO V7 Q Q Q N Q N N N N N N N a0 co N N N N O N 0) N N N N N N N N N N N C E O W O OE C_ .0 C 0 E 0 0 E r m E U Q7 N _ O O E C m ° m � 0 0 o r o Z m a E y C C y d U d o m al c m � m :� N U U m F- C m m c 46 � c vm a) yEo a3ac adm _ d v 0 O d. C C m C C L U U C w C O Y = CL C a) C y V C 0 } N N LL L 7 Y m w O O 0 y 0 0 "O' N )no Q Ey cE °� � c O > > yc SucEd .00a @ma) C7 o Ha c � E a) o 0 5 -0 CO oho a) ''o FQQ- YCl d � my d � mO � O 0 ° L m m 0 m ~ 0 �+ '� 3 y w '� o ¢ m ~ y 3 0 0 o U' h QY m g d � °) 0 dmmm a`) � 0M 0 O cY 0Y o om mQ • w L o m Z m p m m c F. > c m a) c c Q m v E m m ... v y c w o tvii y � y o 0 Q ac O U y c m � .E c .y m v= w 2 c m c :cn E U � ° � � m .E _ t � a3: < 0 vy t - om ° Er 3LL — EcU oma a mv � cmL � d _ Q c Q .0 (D C) m m w L � Q 4) d o _ m m m � a y y a m = O m F- U d mF- _ L _ F- 2 a) y d Ox -0 a) m o a a) E _ > °) Q 0 m > 3 m d O w @ m m m c m > y m m m 'm 'm c E m m m cx m a a. m Co m m E m c m m m m a) d m ° U m 0 m CD a)CX 0 a) O E r d d d d a) a) L a) 0 d y - y y m a a d m y of a a of 2 K 0 Of W M of a cn w ( U (r w 0 w w Y w x w of U of 5 r m 3 cl a) c E '0 m m a) c U N O V E N � 3 6 m r y 7 w O � m m m m N m 0 a) 0) a) a) N a) 0) a) N N N N N N a _4) N _N N N 0) _N N U N U Cl Clm m E E E E E E m E E EEE E E E m — 10 — 0 0 0 0 0 0 = o o o 0 0 0 0 o d m m • UUL) U Quo UUUU � K � K c 7 ' 7 7 7 -7i 7 75 a) m m m m 7 7 7 m d a) m m d m m a) co Q LOQ Q Q fn (n (n N fn Q Q Q (n N fn fn fn fn !n fn N M M M M M M M 00 a0 c- W N N N O O N W N U N to C C C C 7 7 7 7 7 7 7 7 7 7 lli7 7? ?CO ? U Q Q Q Q Q Q Q Q ? Q (n (A (n !n (n N � NNN � � N � NM V) � 00 (hn � nNNSNR V X00 NLO � N m c m y C L 7 y L C N O U > (a m fn 0 0 (� U O -0 3 7 m m L (a m U O ap c_ c_ l6 O cc L � J Q E N C 7 J a) E y c Q E .0 m 0 . N d � � t `0 N 0 Of y � . O m C C H U C L � O H d m O H N x 0 0 O d a) ° 3 ' c m c a c 5 - CO H LL O LL p C m U C 0 0 a N J 7 O O Q Z) 'n 2 m m C O ¢ 3 C C C C (J C w N L C QQ N m C m N Q t z F- O y o a U' o 0) o w @ 0 y Y o t = m Q o m m e m c 0 7 o v ` '� c m g u o `y v w 2 m Q o J d LL 2 a)) F" m e • `- J m (D d m m a) C C Y m 7 2 ` 30 a) C N J C0 .0 J 'U L O V C F Fm 0 x 2 O C C V U E y � m O N c 0 m y v ayi c o m O 2 cr, u a7 U O LL H w U m �° 7 m O d - L Co o m y d Y 3 ,� = L a o o y c o U L N O o Y o 7 U �' `o `0 m L c c U x mm = = v � � o � OUa :Dm 2m wx m yQ � a00 pva u � � � cmi � � F� v a c_ M c L- m m m m a m m m m m m m m m@ m m m E c m 'E 'm 'm 'm 'm 3 m 'm 'm 'M m m m m 'm 'm N a) d m m a) a) m N N a) a) m a) y m d a) m a) m N 0 a) m a � � v� xaU � � � W � � � U � � � � a � � � x � � � x � � xsc � � � � d d d d 10 N 0) 0) d d d d N N Q) r N Ncl N d d 3 � d (D v m c > v U d y d O = h tLL CL � d • 9 :3m C p N c0i � uNi E d o Co cU d m c — m ' FAYETTEVILLE THE CITY OF FAYETTEVILLE, ARKANSAS DAN COODY, MAYOR MEMORANDUM TO: Chairman Nickle and Members of the Airport B rd FROM: Ray M. Boudreaux, Director, Aviation & Economic Develo ent DATE: September 7, 2006 SUBJECT: Self Serve Fuel Formula change BACKGROUND: The self serve system was installed as a service to our customers and a formula was devised to set the price. Due to the rapid increase in the wholesale cost of fuel, the differential between full service price and the self serve price has tended to grow thus causing the self service price to lag behind the retail price. This large differential paints an unfairly negative picture of our first class FBO and thus reflects negatively on the airport. Further the very large • differential creates a "hard to resist" incentive for transient aviators to fill up with self serve and then request FBO services without contributing to the FBO's business while taking advantage of their amenities. Over the last year, the difference has exceeded $.70 a gallon. Below is the current price in the current formula for 100LL. Today there is $.64 difference self serve to retail. . We want to protect our young and first class FBO operation and foster their growth as a partner in the future success of Fayetteville Drake. Additionally, we want to provide the very best value to our customers. I believe that the following is a workable solution that achieves both goals. Staff recommends that we keep the formula but change two categories. Rather than rebating the flowage fee, include the flowage fee as a cost of doing business, which it is. Secondly, increase the margin by $.09 to $. 15. The result will allow the difference to be closer to that found in the rest of the airports locally. Currently, Springdale is $.28 difference, Bentonville is $.20 difference, Fort Smith is $.54 and Siloam Springs is $.47. This will allow the difference to float between $.40 and $.50 difference. Using the change the new price today would be $4.05 which is right in the middle of the local .market and $.44 below the Million Air retail price. -- '" -Aviation and-Economic Development Depaftment • Fayetteville Municipal Airport, Drake Field 4500 South School Avenue, Suite F Fayetteville, Arkansas 72701 Ray M. Boudreaux, Director i • AS OF Avgas MoGas Self Self Per Gallon Per Gallon 3.0741 2.4605 Fuel 0.1940 0.1840 Fed excise tax 0.0000 0.2150 AR Fuel Tax 0.0030 0.0030 AR Petro Environmental 3.2711 2.8625 Fuel cost total 0.0661 0.0065 Operations & Maintenance Cost 0.1500 0.0000 Delivery charge (0.1000) 0.0000 Flowage Fee Revenue (Millionair) 0.0600 0.0100 Margin 0.2925 0.0000 State/local tax 3.7397 2.8790 SubTotal • 0.1058 0.0815 Credit Card Fee (2.75%) 3.8456 2.9605 Calculated Retail Price 0.0000 0.0295 Administration Market Adjustment 0.0044 0.0000 Rounding 3.8500 2.9900 Retail Price -------'- - Aviationand Economic Development Department • Fayetteville Municipal Airport, Drake Field 4500 South School Avenue, Suite F Fayetteville, Arkansas 72701 Ray M. Boudreaux, Director , • LEASE DATA SHEET TENANT: Thea Daniel dba Rose of Sharon ADDRESS: Fayetteville, AR. PHONE: 479.973 .0588 PROPERTY LEASED: Small Office in Terminal Lobby (437 SF) USE OF PROPERTY: Event Florist office and design studio BEGINNING DATE: As soon as possible upon approval TERM OF LEASE: 6 months initial OPTION TO EXTEND: RENTAL FEES: $ 11 /Sq Ft per Year w/ increases every 2 years IAW CPI+1 % Initial rent to be $400.00 per month. • SPECIAL CONSIDERATIONS: Prime Term begins with issuance of building permit but no later than 120 days from the execution of this agreement. Tenant has asked for the airport to allow between $7,844 and $ 10,935 for tenant improvements to the building, improvements to remain. Rent abatement to cover improvements will require approximately 20 months. DESCRIPTION: Event Florist Office RECOMMENDATION: None. This is rather unusual as the improvements are significantly higher than previously approved. The office will be a great addition to the facility and could facilitate other uses for the building. • Message Page 1 of 2 Ray Boudreaux - RE : REGOODace for Rent • From: 'Thea Daniel" <thea_daniel@cox.net> To: "'Ray Boudreaux"' < rboudreaux@ci.fayetteville.ar.us> Date: 10/10/2006 1 :47 PM Subject: RE: REGOODace for Rent Ray, I'm not sure what you need, but this might help. It's a breakdown of the items I'd like the Airport to provide--either by outright purchase or by reducing rent until it's covered . Below that is a list of items that we discussed earlier that aren't part of the remodel quote. Thea opt 1 opt 2 Description ITEMS TO BE PROVIDED BY AIRPORT Reimburse or reduce rent for: Commercial sink purchase and installation $400.00 $400. 00 • Cabinet / workbench purchase and installation $4, 719 .00 $4, 719. 00 Countertop purchase and installation--soapstone $3, 775 .00 Countertop purchase and installation--Formica $ 1 , 500.00 Window treatments $ 1702 plus tax and 10% shipping (approx $2041 ) $20041 .00 Window treatments $ 1702 plus tax and 10% shipping (approx $ 1, 225 . 00 $2041 ) . 3 of 5 blinds quoted TOTALS : J$ 10f935,00 71844.00 Items to be provided by airport: • Move hot & cold water, and sewage into space at designated location . Provide a minimum of 2 additional outlets (more preferred) • Clean/polish Floor . Provide space for outside signage as soon as possible. * This list does not include any items covered by a standard rental agreement Rose of Sharon agrees to: Rent of 423sf space at $11/sf per year with utilities (City, Electric, Gas, Internet) paid. Rent to be paid monthly by the In of each month. 6-month initial lease. 30-day notice. Provide inside signage consistent with standards set by Airport Authority. • • Decor to be consistent with standards set by Airport Authority. file:/%CADocuments and Settings\rboudreaux.000\Local Settings\Temp\XPGrpWise\452B. .. 10/10/2006 1 ' LEASE DATA SHEET TENANT: Live Oak Development, Inc. (an Arkansas Company) Owner: John Davidson Tax ID Number 20- 1238427 ADDRESS: P. O. Box 394 Fayetteville, AR. 72702 PHONE: 479.751 .0060 (0) 479.751 .0107 (Fax) 479.841 .4296 (C) PROPERTY LEASED: Land on the South side of the new West Side General Aviation Apron. Two 140 X 100 building lots USE OF PROPERTY: Construction of two corporate style hangar buildings BEGINNING DATE: As soon as possible upon approval TERM OF LEASE: 30 year prime term • OPTION TO EXTEND: 1 /20 year option First Right of Refusal after 50 years RENTAL FEES: $. 10/Sq Ft per Year w/ increases every 5 years IAW CPI+1 % Rental rates after 50 years to be negotiated between the parties SPECIAL CONSIDERATIONS: Prime Term begins with issuance of building permit but no later than 120 days from the execution of this agreement. DESCRIPTION: Two 140 X 100 building lots on the south side of the West GA Apron RECOMMENDATION: Recommend Approval. Live Oak will construct the first hangar for their company aircraft to be procured. On the books are a King Air 200, a Beech Jet 400 or similar aircraft and a Cirrus. The second hangar will be leased to others for their corporate aircraft. The have not shared the other client with me. • • LEASE AGREEMENT Ground Lease This Lease Agreement entered into this — day of 2006, by and between the City of Fayetteville, Arkansas and Live Oak Development, Inc. WHEREAS, the City of Fayetteville owns and operates the Fayetteville Municipal Airport, Drake Field, situated in Washington County in the State of Arkansas; and WHEREAS, Live Oak Development, Inc. desires to lease from City of Fayetteville certain ground for the construction of two aircraft hangars and ramps as described below: TWO TRACTS OF LAND 140 FT. X 100 FT. (TOTALING 28,000 SQ. FT.) LOCATED AT THE FAYETTEVILLE MUNICIPAL AIRPORT - DRAKE FIELD AND MORE PARTICULARLY SET FORTH AND SHOWN ON EXHIBIT A. ATTACHED HERETO AND MADE A PART HEREOF, ONCE COMPETED TO HAVE AN ADDRESS ON SOUTH SCHOOL AVENUE. NOW, THEREFORE, the Parties hereto agree as follows: 1 . LEASEHOLD. The City of Fayetteville does hereby grant, demise and lease unto LIVE OAK • DEVELOPMENT, INC. certain premises situated in Washington County, Arkansas, within the boundaries of the Fayetteville Municipal Airport- Drake Field. LIVE OAK DEVELOPMENT, INC. will be responsible for all improvements to the Leased Premises. 2. TERM. The term of this lease is for thirty (30) years beginning with the issuance of a building permit, but not later than 120 days from the execution and approval of this lease by the City of Fayetteville ( _day of , 2006), and ending at midnight the end of the previous month in the year 20 ( 20 ), unless otherwise terminated, canceled or extended as set forth herein below. LIVE OAK DEVELOPMENT, INC. will commence development of the property at the earliest possible time consistent with the requirements of the City of Fayetteville Code of Ordinances and the Unified Development Ordinance. Should LIVE OAK DEVELOPMENT, INC. be unable to complete the project within a reasonable timeframe, the City of Fayetteville shall have the right to terminate this agreement. A. Option to Extend. LIVE OAK DEVELOPMENT, INC. shall have the option to extend this Lease for one ( 1 ) period of Twenty (20) years under the same terms and conditions herein. LIVE OAK DEVELOPMENT, INC. shall also have first right of refusal for any lease extensions beyond fifty (50) years if LIVE OAK DEVELOPMENT, INC. satisfies the following conditions and the additional term is approved by the City Council: ( 1 ). LIVE OAK DEVELOPMENT, INC. has complied with and performed all conditions, covenants, and terms of the Agreement without any defaults known to LIVE OAK • – 1 – • DEVELOPMENT, INC., or any defaults that are not otherwise in the process of being resolved in the manner provided in this Agreement. (2). Notice of LIVE OAK DEVELOPMENT, INC.'s request to renew has been made and presented in writing to the City of Fayetteville at least one hundred twenty ( 120) days prior to the expiration of the term. (3 .) The amount of rental fees (based on ground lease rates) 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, LIVE OAK DEVELOPMENT, INC. agrees to pay City of Fayetteville-City of Fayetteville an annual ground rental fee often cents ($. 10) per square foot of total leased ground space. Leased ground space totals 28,000 square feet. Annual rental due the City of Fayetteville is Two Thousand Eight Hundred Dollars and No cents ($2,800.00). Said rental is to be paid in advance in yearly installments on the first day of the month. ( _day of 12007). If paid annually, or in increments of five (5) years or less, rental charges shall be reviewed every five (5) years and the rental charges for the next five (5) years of the lease term will be adjusted up to reflect the Consumer Price Index (CPI) plus one (1 ) percent, using the formula at Lease Attachment # 1 . • The parties agree that the rental to be effective as of the commencement of each period of the lease shall be equal to the rate set forth, as adjusted by the CPI, as defined to mean the monthly index published by the United States Department of Labor, Bureau of Labor Statistics and in no case shall be less than the amount paid for the previous period. Index utilized will be for the month nearest to the renewal date as published by the United States Department of Labor, Bureau of Labor Statistics prior to the renewal date. A delinquency charge will be imposed on payments not received by the close of business on the tenth day after the due date. Such delinquency charge shall be the maximum amount allowable under Arkansas law. All payments shall be delivered or mailed to: CityofFayetteville, 113 West Mountain Street, Fayetteville, Arkansas 72701 . 4. UTILITIES AND JANITORIAL SERVICES. LIVE OAK DEVELOPMENT, INC. shall be responsible for the payment of the utilities associated with any, but not limited to, electric, gas, heating, water/sewer, and trash removal to the leasehold. The City of Fayetteville shall not be required to famish to LIVE OAK DEVELOPMENT, INC. 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 LIVE OAK DEVELOPMENT, INC. for their use and purposes shall be their sole and exclusive responsibility and LIVE OAK DEVELOPMENT, INC. agrees to hold City of Fayetteville harmless from any responsibility or liability therefore. • —2— • 5 . TERMS AND CONDITIONS. LIVE OAK DEVELOPMENT, INC. agrees to comply with and abide by all terms and conditions set forth in this original Lease Agreement. 6. USE OF THE PREMISES. LIVE OAK DEVELOPMENT, INC. agrees that the leased premises shall be used and occupied only as an aircraft hangar and for related lawful purposes. A. Flammable Material. LIVE OAK DEVELOPMENT, INC. 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. B. Hazardous Substance. LIVE OAK DEVELOPMENT, INC. shall not cause or permit any Hazardous Substance to be used or stored on or in the Leased Premises with out first obtaining the City of Fayetteville's written consent. If Hazardous Substances are used, stored, generated, or disposed of on or in the Leased Premises or if the Leased Premises or any other Airport property becomes contaminated in any manner for which LIVE OAK DEVELOPMENT, INC. is responsible or legally liable, LIVE OAK DEVELOPMENT, INC. shall indemnify and hold harmless the City of Fayetteville from any and all claims, damages, fines, judgments, penalties, costs, liabilities, or losses (including, without limitation and decrease in value of the Lease Premises, damages caused by loss or restriction of rentable or usable space as part of the Leased Premises) arising during or after the tern hereof and arising as a result of that contamination by LIVE OAK DEVELOPMENT, INC., • LIVE OAK DEVELOPMENT, INC.'s agents, employees, and invitees. This indemnification includes, without limitation, and all costs incurred because of any investigation of the Airport or any cleanup, removal, or restoration mandated by a federal, state, local agency or political subdivision. C. LIVE OAK DEVELOPMENT, INC. shall not start or operate aircraft engines within the facility to be constructed on the*airport property leased hereby and shall not allow such operations by any other person. 7. USE OF THE AIRPORT. LIVE OAK DEVELOPMENT, INC. is granted the use, in common, without charge, with others 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, ramps, aprons, taxiways, flood lights, landing lights, beacons, control tower, signals, radio aids, and all other conveniences for flying, landings and takeoffs. LIVE OAK DEVELOPMENT, INC. agrees to observe and obey City of Fayetteville's Ordinances and Regulations with respect to the use of the demised premised and Airport; provided, however, such Ordinances and Regulations shall be consistent with safety and with all city, county, state, and federal ordinances, rules and regulations. LIVE OAK DEVELOPMENT, INC. agrees to abide by the rulings of the Federal Aviation Administration with respect to the use of the Leased Premises. The Minimum Standards for Fayetteville Municipal Airport, Drake Field herein referred to as the Airport • —3— • Minimum Standards are made part of this lease by reference as if included word for word. 8. REPAIRS, MAINTENANCE AND APPEARANCE. A. LIVE OAK DEVELOPMENT, INC. shall at all times during the term of this Lease Agreement, at LIVE OAK DEVELOPMENT, INC. 's expense, keep and maintain in good repair and safe condition the leased premises and the equipment and appurtenances, both inside and outside, structural and non-structural, extraordinary and ordinary, whether or not necessitated by wear, tear, obsolescence or defects, latent or otherwise. When used herein, the tern "repairs" shall include all necessary replacements, renewals, alterations, additions, and betterments. LIVE OAK DEVELOPMENT, INC. acknowledges that LIVE OAK DEVELOPMENT, INC. shall be responsible for the repairs and maintenance necessary to maintain the structural integrity of the hangar. LIVE OAK DEVELOPMENT, INC. will at all times maintain the Leased Premises in a clean, orderly, and attractive condition; not allow the accumulation of rubbish, trash, refuse and any unsightly conditions or fire hazards on the Leased Premises. LIVE OAK DEVELOPMENT, INC. shall be responsible for mowing and the upkeep of the outside grounds of the Leased Premises. LIVE OAK DEVELOPMENT, INC. shall be responsible for all janitorial services and trash removal from the Leased Premises. B. The necessity for and adequacy of repair to the Lease Premises, pursuant to subparagraph (A.) hereof, shall be measured by the standard which is appropriate for improvements of similar • construction and also shall meet the requirements and standards set out and promulgated by the City of Fayetteville pursuant to the primary lease referred to above. C. LIVE OAK DEVELOPMENT, INC. agrees to reimburse City of Fayetteville for all sums and expenses incurred in the repairs or maintenance required or caused to be made pursuant to the regulations and rules of the City of Fayetteville mentioned in subparagraph (B) above as a result of failure by LIVE OAK DEVELOPMENT, INC. to maintain or repair the demised premised as required. 9. ALTERATIONS AND IMPROVEMENTS. LIVE OAK DEVELOPMENT, INC. shall have prior written consent from the City of Fayetteville, meeting all City requirements, to make any alterations, additions and improvements LIVE OAK DEVELOPMENT, INC. deems necessary and desirable to the interior of the leased premises. LIVE OAK DEVELOPMENT, INC. shall not be entitled to make any major or material alterations, additions or changes to the exterior of the leased premises without the City of Fayetteville's prior written consent. LIVE OAK DEVELOPMENT, INC. acknowledges and agrees that all such alterations, additions and improvements, including paneling, partitions, railings, floors, ceilings and the like, shall become the property of the City of Fayetteville upon the terminations of the Lease Agreement. 10. INSURANCE. LIVE OAK DEVELOPMENT, INC. shall obtain and maintain property insurance coverage for the repair or replacement of the leasehold and any adjacent improvements, with an insurance company licensed to do business in the State of Arkansas, naming the City of • —4— SFayetteville and the Fayetteville Municipal Airport and their trustees, agents, officers, and employees are named as an additional insured on the policy, and LIVE OAK DEVELOPMENT, INC. shall provide the Airport Administration Office with a Certificate of Insurance during the term of this Lease. LIVE OAK DEVELOPMENT, INC. acknowledges that it is the LIVE OAK DEVELOPMENT, INC. 's responsibility to maintain insurance on LIVE OAK DEVELOPMENT, INC.'s personal property. 11 . SUB-LEASING AND ASSIGNMENT. LIVE OAK DEVELOPMENT, INC. shall not be entitled to sub-lease or assign the LIVE OAK DEVELOPMENT, INC. 's interest in this Lease Agreement without first obtaining the written permission of the City of Fayetteville, provided however, LIVE OAK DEVELOPMENT, INC. may assign LIVE OAK DEVELOPMENT, INC.'s interest in this Lease Agreement for a One Hundred and Eighty (180) day period to a Qualified Escrow, LLC, in order for LIVE OAK DEVELOPMENT, INC. to accomplish a tax deferred exchange under Section 1031 of the Internal Revenue Code. A request to sub-lease or an assignment of the lease will not be unreasonably withheld. 12. 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. LIVE OAK DEVELOPMENT, INC. shall fail to pay when due and owning any rentals hereunder and such nonpayment shall continue for twenty days after written notice thereof by the Airport; B. LIVE OAK DEVELOPMENT, INC. voluntarily shall abandon, desert, or vacate the Leased Premises; C. LIVE OAK DEVELOPMENT, INC. shall fail to comply with insurance requirements imposed hereunder; D. LIVE OAK DEVELOPMENT, INC. shall fail to observe or perform any other of its obligation hereunder, and such failure shall continue unremedied for twenty (20 days after the City of Fayetteville shall have given to the LIVE OAK DEVELOPMENT, INC. written notice specifying such default. Provided, the Airport may grant LIVE OAK DEVELOPMENT, INC. such additional time as it' s reasonably required to correct any such default if LIVE OAK DEVELOPMENT, INC. has instituted corrective action and diligently is pursuing the same; E. LIVE OAK DEVELOPMENT, INC. shall fail to provide and maintain any security assurances required hereunder; or 13 . REMEDIES UPON LIVE OAK DEVELOPMENT, INC.'S DEFAULT. Whenever an event • —5—