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HomeMy WebLinkAbout08-76 RESOLUTION• • RESOLUTION NO. 9- fl • A RESOLUTION AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A LEASE AGREEMENT WITH SCHEDULED SKYWAYS, INC. FOR FACILITIES AT DRAKE FIELD. BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the Mayor and City Clerk be, and they hereby are, authorized and directed to execute a Lease Agreement with Scheduled Skyways, Inc. for facilities at Drake Field. A copy of said Lease Agreement, marked Exhibit "A", is attached hereto and made a part hereof. PASSED AND APPROVED THIS 30DAY OF ycP� �Q , 1976. APPROVED: ATTEST: J MAY R CITY CLZRK 100.1 nei 100.2 A- 3-7b MICROFJLMW DATES 3 8 Wa REEL The motion was declared passed and the ordinance was read the second time, Director Collier, seconded by Director Todd, moved that rules be further suspended and the ordinance placed on third and final reading. The recorded roll call vote of the Board was: "Ayes": Hughes, Orton, Purdy, Collier, Lancaster, Todd No nd "Nays": None ' The motion was declared passed and the ordinance was read the third and final time. There being no discussion, the Mayor asked if the ordinance should pass. The recorded roll call vote of the Board was: "Ayes": Orton, Purdy, Collier, Lancaster, Todd, Noland "Nays": None Abstain: Hughes The Mayor declared the ordinance passed. ORDINANCE NO. 2195 APPEARS ON PAGE 66 OF ORDINANCE & RESOLUTION BOOK V RESOLUTION AUTHORIZING EXECUTION OF LEASE - Scheduled Skyways 1 100.3 The resolution, read by the City Attorney, would authorize the Mayor and City Clerk to execute a lease agreement with Scheduled Skyways for use: ' Drake Field facilities. Representing Skyways was Mr. Jim Gallman and Mr. 100.4 Mr. Gallman requested that paragraph nine of the lease be amended to read: "Lessee hereby agrees to pay for any necessary interior repairs to the hangar...Lessor hereby agrees to pay for any necessary exterior and structural repairs..." He stated that changes and typographical corrections appearing in the final lease were acceptable. 100.5 In reply to question from the Board, Mr. Gallman explained the inter: of paragraph six as being to assure that Scheduled Skyways mould be able to continue operations if the hangar were partially or totally destroyed and would provide for an equitable determination of the lessee's rental payment obligations'`* Director Noland suggested an amendment to paragraph six to cause it to read: "...such building shall be repaired or replaced. 100.6 tor. Gallman stated that he considered floors to be part of the interior and that repairs and maintenance of the floors would be the res- ponsibility of the lessee. In regard to liability insurance, Mr. Gallran and Mr. Jones stated that the lessee would carry hangar keeper's liabilit:. ; insurance and name the City of Fayetteville as an "also insured". 100.7 Discussion completed, Director Purdy, seconded by Director Noland, moved that the lease be amended to include amendments to paragraphs nine and six and the addition of a clause assuring that the lessee wo'Ii carry proper liability insurance naming the City as an also insured. recorded roll call voteof the Board was: "Ayes": Hughes, Orton, Purdy, Collier, Lancaster, Todd, Noland "Nays": None The motion was declared passed. 100.8 There being no further discussion, Director Collier, seconded by Director Lancaster, moved that the resolution be adopted. The recorded roll call vote of the Board was: "Ayes": Hughes, Orton, Purdy, Collier, Lancaster, Todd, Boland "Nays": None The resolution was declared adopted. RESOLUTION NO. 8-76 APPEARS ON PAGE 38 OF ORDINANCE & RESOLUTIO'1 ** Mr. Gallman explained that the rent due after destruction of the would cover all Skyways operations at the airport except usaga o • • • LEASE �j EXHIBIT' A THIS LEASE, executed on this 96 day of t ,�,,, 1976, between the City of Fayetteville, Arkansas, a municipal corporation, hereinafter called "Lessor", and Scheduled Skyways, Inc., an Arkansas business corporation, hereinafter called "Lessee". WITNESSETH: WHEREAS, Lessor is the owner of an airport known as Drake Field in the City of Fayetteville, Arkansas, hereinafter re- ferred to as the "airport"; and WHEREAS, Lessee is engaged in the air transportation business and operates a scheduled flight operation carrying passengers and freight for hire under proper authorization of the Federal Aviation Administration, the Arkansas Transportation Commission and the Civil Aeronautics Board, and desires to use the facilities of the airport and to maintain a base of operations at the airport; and WHEREAS, Lessee serves as a fixed base operator at the airport pursuant to Section 2A-16 and 2A-17 of the Fayetteville Code of Ordinances and desires to use the facilities of the airport in connection with its fixed base operations; and WHEREAS, Lessor is willing to lease to Lessee a portion of the airport premises, together with such rights and/or privileges as are set forth in this agreement. NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND CONDITIONS OF THIS AGREEMENT, THE PARTIES AGREE PS FOLLOWS: 1. LEASED PREMISES: Lessor hereby lets and demises to Lessee the following: (a) The exclusive use of the hangar designated on Exhibit "A" attached hereto; and supervisory and custodial use of the ramp and parking space designated on Exhibit "A" attached hereto, subject to the rights cf other airrort tenants to use said ramp and parking space. (b) The exclusive use of the seventy-two (72) square feet of counter space now occupied by Lessee • • -2 at the terminal of the airport, and the use in common with others similarly authorized, and with Lessee's customers, passengers, guests, and other invitees, of the ramp area and baggage handling area designated on Exhibit "B" attached hereto. 2. AUTHORIZATION: Lessor authorizes Lessee to use the foregoing facilities in connection with its scheduled flight operations and its fixed base operation, and specifically authorizes Lessee to operate the same for profit and to make reasonable charges to the aviation users and general public for all services rendered by Lessee, including, but not limited to, hangar rental, landing and parking fees of aircraft (except for other scheduled air carriers operating into the airport on a regular schedule), fuel and aircraft repairs and servicing, charter service, aircraft rental, miscellanous sales of parts and provisions required by aircraft, their crews and passengers, and any other service ordinarily and reasonably offered by fixed base operators and scheduled air carriers; provided, Lessor does not by this agreement authorize Lessee to operate airport limousine service, rent -a -car service, or general food service. 3. TERM: Subject to provided, the term of this five (5) years, commencing December 31, 1980. 4. RENTALS AND CHARGES: In consideration of the use of the premises and facilities granted hereunder, Lessee agrees to pay Lessor the sum of Seventeen Thousand Dollars ($17,000.00) per annum for the years 1976 and 1977, said sum to be paid in monthly installments payable in advance with the accrued pay - rents payable upon the approval and execution of this agreement by the parties. The consideration payable to Lessor for the year 1978 shall be the amount resulting by adjusting the basic consideration during the initial two years of this lease, i.e., $17,000.00, to reflect the percentage of change (either up or down) occurring in the Consumer Price Index, U. S. Bureau of earlier termination, as hereinafter agreement shall be for a period of January 1, 1976, and ending on 771. -3- Labor Statistics, Department of Labor, through comparing the index of December 31, 1977 with the index on December 31, 1976. The consideration payable to Lessor for the year 1979 shall be the amount resulting by adjusting the adjusted con- sideration payable in 1978 to reflect the percentage of change (either up or down) occurring in the Consumer Price Index, U. S. Bureau of Labor Statistics, Department of Labor, through comparing the index of December 31, 1978 with the index on December 31, 1977. The consideration payable to Lessor for the year 1980 shall be the amount resulting by adjusting the adjusted consideration payable in 1979 to reflect the percentage of change (either up or down) occurring in the Consumer Price Index, U. S. Bureau of Labor Statistics, Department of Labor, through comparing the index of December 31, 1979 with the index on December 31, 1978. 5. NONDISCRIMINATION: Lessee agrees that it will not discriminate against any person in the operation of its air transportation service or fixed base operation because of race, age, creed, sex, or national origin. 6. DAMAGE OR DESTRUCTION OF PREMISES: If the hangar which Lessee occupies exclusively hereunder is damaged or destroyed by fire or other casualty, such building shall be repaired or replaced with due diligence by Lessor at its c:•:n cost and expense. The consideration payable hereunder shall be paid up to the time of such damage or destruction, but shall thenceforth be abated proportionately. It is recognized that under this agreement Lessee has exclusive occupation of the hangar, and that in the event said hangar becomes untenantflbie, Lessee's scheduled flight operations may continue. 7. TERMINPTION BY LESSEE: Lessee may cancel this ac;reer.ent upon ninety (90) days written notice to Lessor at its electicn to cancel upon the occurrence of any cf the following events: (a) Impairment of Lessee's authority to operate scheduled operations; • -4- (b) Federal Aviation Administration significantly altering operating requirements at Drake Field making Lessee's operations undesirable; (c) Court action preventing Lessee from operating its flights or closing Drake Field for more than 15 days; (d) Substantial and continued breach by Lessor of its obligations under this agreement; (e) Inability of Lessee to utilize the facilities granted it herein in a reasonable and useful manner due to action of Lessor or any court or administrative agency with jurisdiction; (f) Assumption of control of Drake Field by the United States Government or any of its agencies, that prevents Lessee's normal operations (including the fixed base); (g) Erection of obstructions to the flight paths to the runways that prevent normal operations by Lessee; and (h) An increase in the Consumer Price Index, U. S. Bureau of Labor Statistics, Department of Labor, in excess of 10% for any of the comparisons specified in Section 4 of this lease. 8. TERMINATION BY LESSOR: If Lessee fails to make any payment due hereunder within ten (10) days of the date on which such payment is due, Lessor may, at its option, terminate this agreement and take possession of so much of Lessee's personal property as is reasonably necessary to secure payment of the amounts due and unpaid. Lessor shall also have the right to terminate this agreement in the event of any of the following: (a) The filing by Lessee of a voluntary petition in bankruptcy; (b) The adjudication of Lessee as a bankrupt pursuant to bankruptcy proceedings; (c) The appointment of a receiver of Lessee's assets; (d) The divestiture of Lessee's estate herein by operation of law; • • (e) The abandonment by -Lessee of its air transpor- tation business at the airport; No waiver or default by Lessor of any of the terms or con- ditions hereof to be performed, kept and observed by Lessee, shall be construed to be or act as a waiver of any subsequent default of any of the terms and conditions herein contained to be performed, kept and observed by Lessee. 9. REPAIRS TO HANGAR: Lessee hereby agrees to pay for any necessary interior repairs to the hangar leased exclusively to Lessee hereunder. Lessor hereby agrees to pay for any necessary exterior and structural repairs to said hangar; provided, Lessor and Lessee agree to share equally the cost of any necessary repairs to the hangar doors. 10. ADDITIONAL IMPROVEMENTS: In the event Lessee desires additional ramp space or other improvements or facilities at the airport, Lessor agrees to apply for governmental grants for such ramp space, improvements, or facilities at the airport, if 100% of the local matching funds or local share are provided by Lessee, or are otherwise available. 11. SURRENDER OF POSSESSION: On the expiration or other termination of this lease, Lessee's rights hereunder shall cease, and Lessee shall surrender possession of the premises granted herein in good condition, except for usual and ordinary :;ear and tear. Except as otherwise provided in this agreement, all fixtures, improvements, equipment, and other property broucht, installed, elected, or placed by Lessee in, on or abo_t airport and premises leased hereunder shall be dee::ed personalty and remain the property o Lessee. Lessee 4- f, shall have the right at any time during the term of this ac-rcem.e: and for an additional period of thirty (30) days after expiration or other termination of this agreement to remove any or all of such property from the airport, subject, however, • • -6- to Lessee's obligation to repair all damage, if any, resulting • from such removal. Any and all property not removed by Lessee prior to the expiration of the said thirty (30) day period shall thereupon become a part of the land on which it is located and title thereto shall thereupon be vested in Lessor. Upon expiration or termination of this agreement, Lessee hereby grants Lessor an option to purchase all gasoline storage tanks, gasoline pumps, and other accessories thereto, then owned by Lessee and used in its operation as a fixed base. The purchase price for said property shall be market value at the time of exercise of the option granted hereby. Lessor may exercise its option hereunder by giving Lessee written notice thereof within ten (10) days of the expiration or termination of this agreement. 12. SEVERABILITY: This agreement shall be construed under the laws of the State of Arkansas. In the event any covenant, condition, or provision herein contained is held to be invalid by any court of competent jurisdiction, the in- validity of such covenant, condition or provision shall in no way affect any other covenant, condition, or provision herein contained; provided, however, that the invalidity of such covenant, condition, or provision does not materially prejudice either the Lessor or the Lessee in their respective rights and obligations contained in the valid covenant, condition, or provisions of this agreement. 13. ARBITRATION: Any dispute between Lessor and Lessee relative to the provisions of this lease shall be subject to arbitration. Each party shall select an arbitrator and the two arbitrators so selected shall select a third arbitrator between them, the controversy being heard by the three arbi- trators so selected. The decision of the three arbitrators shall be final and binding on both Lessor and Lessee, who shall bear the cost of arbitration equally between them. • J . • • • -7- , 14. INSURANCE: Lessee agrees to add Lessor as an insured under Lessee's existing Hangar Keeper Liability Insurance Policy and to maintain said policy in force throughout the term of this lease. Lessor shall file a copy of said policy with the City Clerk of Lessor. Lessee agrees to notify Lessor in writing as to any amendments to or c4ncellation of said policy. 15. FEDERAL GRANTS: In the event any of the activities of Lessee affect Lessor in connection with its efforts to obtain grants of funds from federal agencies, then Lessee acrees to conform its activities so as to afford Lessor the greatest amount of grant available. 16. AGREEMENTS WITH GOVERNMENTAL AGENCIES: Should there be any agreements between Lessor and other governmental agencies concerning the operations contemplated herein by Lessee, then such provisions of such agreements as affect the parties shall be deemed incorporated herein by reference. 17. NOTICES: Notices to Lessor provided herein shall be sufficient if sent by registered mail, addressed to Lessor at its regular mailing address, Postal Drawer F, Fayetteville, Arkansas 72701. Notices to Lessee provided herein shall be sufficient if sent by registered mail, addressed to Lessee at its regular mailing address, P. O. Box 1344, Fayetteville, Arkansas 72701. 18. This agreement shall inure to the benefit of and be binding upon the successors, assigns and legal representa- tives of the parties. In Witness Whereof, the parties hereto have executed this agreement on the year and date first above written. ATTrST: ATTEST: • CITY CLERK CITY OF FAYETiEVILLE, BY %,i'.':'� SCHEDULED S?:Y;•:AYS, INC,. BY TITLE SECRETARY citl:1�,-,�_. Plus exisiting fuel tank farm facilities currently used by Lessee and under fence. • EXHIBIT "A" • EXHIBIT "B" M'. C h Emr i % i I- \:. \10 a 14 1 94 9!„ 91 1 1 fT b - • yi 0'