HomeMy WebLinkAbout19-74 RESOLUTIONt E
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RESOLUTION NO. /L"
BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
That the Mayor and City Clerk be, and hereby are, authorized
and directed to execute a lease agreement with Scheduled Skyways,
Inc., whereby Scheduled Skyways, Inc., agrees to lease an airplane
hangar facility at Drake Field. A copy of said agreement, marked
Exhibit "A" is attached hereto and made a part hereof.
PASSED AND APPROVED THIS .02 /24! DAY OF atioltL;Qi
1974.
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ATTEST:
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'1PROV
APPROVED: .`
MAY R
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"'LEASE AGREEMENT 1I:\
MICR R `ED
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REELDATE
This agreement made and entered into this N/ day of
`ice , 1974, by and between the City of Fayetteville,
Arkansas, a municipal corporation, hereinafter called "Lessor",
and Scheduled Skyways, Inc., an Arkansas corporation, hereinafter
called "Lessee."
WHEREAS, Lessor owns and operates an airport known as
Drake Field, situated in the County of Washington in the State
of Arkansas; and whereas, Lessee desires to lease,from Lessor
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certain space.-at,Drake Field and a=prefabricated`metal air-
plane hanger. - -
NOW, THEREFORE, BE IT MUTUALLY'AGREED BY AND BETWEEN
THE PARTIES HERETO: -
1. Lessor agrees to grant•yand Lessee agrees to take,
for Lessee's sole and exclusive use for and during the term
hereinafter provided, a certain tract of land 75 feet by 120
feet located at Drake Field and more particularly set forth
as shown on the exhibit attached hereto marked "Exhibit A"
which exhibit is made a part hereof.
2. Lessor and Lessee agree that the term of this Lease shall
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be for a period of ten (10) years begiinrting'SepteMben •1 :1D7i4'.
3. Lessor agrees to construct on the demised premises one
prefabricated metal airplane hanger, said hanger to be con-
structed to Lessee's specifications and for Lessee's exclusive
use during the term of this lease; said hanger shall have
approximate dimensions of 75' x.120' and shall be of high quality,
safe and modern in design, and attractive in appearance. The
cost of said hanger shall not exceed Fifty Thousand Dollars
($50,000.00).
4. Lessor shall finance the construction of the aforesaid
hanger solely by the issuance of revenue bonds; said bonds shall
not be general obligations of lessor but shall be special obli-
gations payable solely from revenue received by lessor under the
terms of this lease. Said bonds shall bear interest at a rate not
to exceed 6h% per annum, and said bonds shall mature over a ten
(10) year period. If for any reason, Lessor is unable to sell
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said revenue bonds, neither party hereto shall be under any
obligation whatsoever and this agreement shall be terminated.
5. As consideration for this lease, Lessee agrees to pay
Lessor an annual basic rent equivalent to the principal and
interest due each year on the aforesaid bonds and agrees to
pay an annual ground rent of $750.00; said annual rent payments
shall be payable in advance beginning Oct 1, 1974, and on
each July 1 thereafter during the term of this lease.
6. Throughout the term of this lease, Lessee agrees to
insure the aforesaid hanger facility against damage or destruction
caused by fire and lightening, extended coverage, vandalism, and
malicious mischief; said insurance policy shall name Lessor as
the insured and shall be in the amount of Fifty Thousand Dollars
($50,000.00). Lessee shall file a copy of said insurance policy
with the City Clerk of Lessor.
7. Lessee agrees to maintain the aforesaid hanger in good
condition and state of mainte*ance, keeping said hanger clean,
safe, functioning and sanitary.
8. Lessee agrees to observe and obey all the laws, ordin
ances, regulations, and rules of any federal, state, or muni-
cipal government which may be applicable to its operations at
Drake Field.
9. Lessor agrees that in the event it constructs or
participates in the construction of a new municipal airport
which is completed prior to the expiration of this lease, Lessee
is to be permitted, at its option, to move the above described
hanger to the new airport site for the remaining period of this
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lease, if private'owners are permittedi:to erect hangers at said
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new airport site. f =e•
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In the event Lessee elects, to move the above-described
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hanger to the aforesaid new.airport site, its obligations under
this lease shall not change: The cost of moving said hanger
shall be paid by Lessee, unleis said move occurs after the sixth
year of this lease, in which event fifty percent (500) of the
cost of said move shall be paid by Lessee and fifty percent (50%)
by Lessor.
10. Subject to regulations governing the use of Drake
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Field, Lessee, its agents and servants, patrons and invitees,
shall have the right of access to the airport taxiway; provided,
however, that any roadway, or taxiway necessary to provide
access from the demised premises to the airport taxiway shall
be constructed and maintained at the sole cost of Lessee; and
further provided that construction of any such roadway or taxi-
way shall be subject to written approval by the City Engineer
in advance of any construction or installation. Lessee agrees
to make prompt payment to all persons supplying labor or
material for the construction or maintenance of any such road-
way or taxiway, and agrees not to permit any lien or claim to
be filed or prosecuted against Lessor on account of any labor or
material furnished.
11. Lessee. agrees to pay for all utilities, utility ser-
vices, including, but not limited to, the electrical, gas,
water, sewer, and sanitation service, and such other special
services which Lessee may require.
12. Lessee in performing under this agreement agrees not
to discriminate against any worker, employee or applicant be-
cause of race, creed, color or national origin.
13. Lessee agrees that if the administrator of the
Federal Aviation Agency or the Director of the4State Depart-
ment of Aeronautics or anyother governmental office or body
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having jurisdiction overkthe enforcement of the obligations
of Lessor in connection with federal or state airport aid
shall make any orders, recommendations or suggestions
respecting the performance by Lessee of its obligations
under this agreement, Lessee shall have the option of
promptly complying therewith, at the time or times when
and to the extent Lessor may direct, or Lessee shall have
the option of cancelling this lease. In the event Lessee
elects to cancel this lease, it shall, within thirty (.30)
days from the date of cancellation, pay Lessor an amount
equivalent to the outstanding principal and interest on the
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aforesaid bonds plus any prepayment penalty applicable to
said bonds.
14. Lessee agrees to make prompt payment,. when due,
of all taxes and assessments levied or assessed on Lessee's
personal property located on the leased premises.
15. Lessee shall at all times keep and hold Lessor harm-
less from any and all claims and demands, loss and expense arising
out of, or connected with, Lessee's. operations, or as the result
of anything claimed to be done or omitted to be done by Lessee,
provided Lessor shall in each instance give Lessee prompt written
notice of any such claim or demand; and Lessor shall cooperate
with Lessee in the investigation of such claim. Lessee shall
obtain and maintain continuously in effect at all times during
the term hereof, at Lessee's sole expense, general liability
insurance protecting Lessor against liability caused by
or arising out of any wrongful act or omission by Lessee.
In event of any claims, demand or action arising out of
an occurrence covered by any of such insurance of which Lessor
has knowledge, Lessor agrees to give Lessee prompt notice, in
writing, and to cooporate with Lessee in the investigation
thereof.
16. Lessee agrees to allow -Lessor's authorized represent-
ative access to the demised premises at all
for the purpose of examining and inspecting
reasonable hours,
said premises, for
purposes necessary, incidental to or connected with the perform-
ance of Lessor's obligations hereunder, or in the exercise of
its governmental functions.
17. Lessee agrees that no advertising will be placed on
the leased premises, or the hanger to be constructed thereon,
other than Lessee's name, and that Lessee will comply with
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Lessor's sign ordinance in the event sucha sign is constructed.
18. In the event the above-described hanger is damaged
or destroyed prior to the expiration of this lease by an
occurrence for which Lessor receives insurance proceeds, Less
agrees to repair or rebuild said hanger in substantially the
same condition as saidhanger was prior to said damage or
destruction, if the estimated cost of repairing or rebuilding
said hanger does not exceed the amount of said insurance proceeds.
Should the estimated cost of repairing or rebuilding said hanger
exceed the amount of said insurance proceeds, Lessor agrees
to repair or replace said hanger, if Lessee aggrees to pay
said excess cost; If Lessee does not agree to pay said excess
cost, Lessor shall be under no obligation to repair or rebuild
said hanger, and Lessee shall have the right to terminate this
lease. In the event Lessee elects to terminate this lease,
Lessor shall have the right to retain all of said insurance
proceeds, and Lessee shall pay Lessor a.sum of money equivalent
to the principal and interest on all of the aforesaid revenue
bonds outstanding on the date of termination, plus any pre-
payment penalty applicable to said bonds.
19. Lessee agrees not to assign, transfer, sublease,
pledge, surrender or otherwise encumber or dispose of this
lease or any estate created by this lease or any interest in
any portion of the same, or permit any person or persons,
company or corporation to occupy the premises without the written
consent of Lessor, which consent shall not be unreasonably with-
held by Lessor.
20. (a) So long as any of the principal of or interest on
the bonds. shall,be,outstanding and unpaid, or until payment thereof
has been'duly.provided for, Lessee'sobligation to pay basic rent
and ground rent shall"be,absolute and unconditional and the basic
rent and ground rent shall be certainly payable on the dates of at
the times specified without notice or demand, and without abatement
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or set-off, and regardless of any contingencies whatsoever, and
notwithstanding any circumstances that may now exist or that may
hereafter arise or take place.
(b) This agreement shall be subject to cancellation by
Lessee in the event of any one or more of the following events:
(1) The permanent abandonment of Drake Field as an
air terminal, provided a new municipal airport
at which private owners are permitted to erect
hangers is not in operation.
(2) The lawful assumption by the United States Government
of any authorized agency thereof, or the operation,
control or use of Drake Field, or any substantial
part or parts thereof, in such a manner as substantially
to restrict Lessee from operating thereon for a period
in excess of thirty (30) days.
(3) Issuance by any court of competent jurisdiction of
an' injunction- which in any .way prevents orr restrains
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the use of Drake Field as an airport terminal, provided
said injunction remains in force for a period in
excess of thirty (30) days.
(4) The default By Lessor in the performance of any
covenant or agreement herein required to be per-
formed by Lessor, and the failure of Lessor to
remedy such default for a period of thirty (30)
days after receipt from Lessee of a written notice
to remedy the same; provided failure of Lessor to
complete construction of the aforesaid hanger facility
by any particular time shall not constitute default
by Lessor, unless such time is a reasonable time and
such failure results solely from actions of Lessor.
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21. In the event Lessee cancels this Agreement pursuant
to Sectionst1 .2 or 3 of Paragraph 20 herein, Lessee agrees to
pay Lessor within 30 days an amount equivilant to the total
remaining principal and interest outstanding on the aforesaid
revenue bonds on the date of cancellation, plus any prepayment
penalty applicable to said bonds.
22. In the event any covenant, condition or provision
herein contained is held to be invalid by any court of com-
petent jurisdiction the invalidity of any such covenent, condition
or 'provision shall in no way affect any other covenant, condition
or provision herein contained, provided that the invalidity of
such covenant, condition or provision does not materially
prejudice either Lessor`or Lessee in its respective rights and
obligations contained in the valid covenants, conditions or pro=
visions of this lease
IN WITNESS WHEREOF we have hereunto set our hands this
/ day of Vf j'k{ 4 `
1974.
LESSOR
CITY OF�1FAYETTEVILLE, ARKANSAS,
BY: 17/7260114/49N,/N,�"
ATTEST:
MAYOR
LESSEE
SCHEDULED"SKYWAYS, INC.
BY: -1-7