HomeMy WebLinkAbout31-79 RESOLUTION•
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RESOLUTION NO. i-'7
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A RESOLUTION AUTHORIZING THE MAYOR AND CITY CLERK TO
EXECUTE A MODIFICATION OF THE CITY'S LEASE AGREEMENT WITH
SCHEDULED SKYWAYS, INC.
BE IT RESOLVED BY THE BOARD OF DIRECTORS OF FAYETTEVILLE,
ARKANSAS:
That the Mayor and City Clerk are hereby authorized and
directed to execute a modification of the City's Lease Agreement
with Scheduled Skyways, Inc. A copy of the modification authorized
for execution hereby is attached hereto, marked "Exhibit A" and
made a part hereof. --��--��LL l, ! , ,�
PASSED AND APPROVED this / 31AL day of �� //�`,�" , 1979.
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APPROVED:
MAYOR
MICROFILMED
DATE ]UN 1 2 1919
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MODIFICATION OF LEASE AGREEMENT
This agreement made this /SD" day of
1979, by and between City of Fayetteville, Arkansas, a Municipal Corporation,
hereinafter called Lessor, and Scheduled Skyways, Inc., an Arkansas business
corporation, hereinafter called Lessee.
WHEREAS, the parties hereto have entered into a lease dated February 9,
1976, a copy of which is attached hereto, marked Exhibit "A" and made a part
hereof; and
WHEREAS, the parties desire to enter into a new agreement modifying or
supplementing the provisions of said lease.
NOW, THEREFORE, the parties mutually agree as follows:
1. Paragraph 1(b) of said lease is modified to read as follows:
(b) The exclusive use of 221 square feet of counterspace now occupied
by Lessee 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 "8" attached hereto.
2. Paragraph 4 of said lease is modified to read as follows:
4. Rentals and charges: Subject to earlier termination as hereinafter
provided, Lessee agrees to pay Lessor for the use of the premises,
facilities, rights, services, and privileges granted hereunder, rentals
and charges according to the following schedule, which rentals and
charges shall be payable by the 10th day of each month, unless other-
wise provided:
A. Landing fees at the rate of 20 cents per thousand pounds gross
landing weight for each regularly scheduled aircraft landing each
month as outlined in Exhibit "D" attached hereto and made a part hereof.
B. For the exclusive use of 221 square feet of counterspace, the sum
of $7.10 per square foot per year.
C. For the use of the aircraft parking apron and wooden aircraft
hanger, the sum of $8,500.00 per year payable in advance on or before
January 30th of each year. The sum payable to Lessor under this,
paragraph (c) for the year 1980 shall be the amount resulting by
adjusting $8,500.00 to reflect the percentage of change (either up
or down) occuring 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.
3. All provisions of the lease are incorporated herein and are hereby
modified or supplemented to conform herewith but in all other respects are
to be and shall continue in full force.
IW WITNESS WHEREOF, the parties have executed this Modification of Lease
on the day and year first above written.
ATTEST:
BY. t 9 �(.(LLCde-
ITY CLERK
ATTEST:
BY:
TITLE:
CITY OF FAYETTEVILLE, ARKANSAS
A Municipal Corporation
MAYOR
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SCHEDULED SKYWAYS, INC.
BY: M ---I 4'
TITLE: Reslpeer ,
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EXHIBIT "D"
For Airport Agreement between Scheduled Skyways, Inc. (Lessee)/�/and the
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City of Fayetteville, Arkansas (Lessor) for the term of
1979 , through 0 ,eimen-'C1L. -31 , 19ZO .
LANDING FEES
Lessee shall pay Lessor a monthly landing fee based on the aggregate
maximum certified landing weight of all flights scheduled to land at the
Airport during the month as shown by Lessee's timetable as posted at the
Scheduled Skyways Passenger Ticketing Counter and in effect on the first
day of such calendar month, computed as follows:
20 cents per 1,000 pounds (mclw) per month for 1979
The number of arrivals scheduled to land at the Airport during the
month, multiplied by the applicable maximum certified landing weight for
each aircraft (the Swearingen Metroliner being the principal aircraft used
by Lessee, and the weight of which is to be used as applicable to all
flights) scheduled to be operating, as shown by Lessee's said timetable,
shall determine the weight for which the monthly payment shall be made.
The term "maximum certified landing weight" (mclw) for any aircraft,
as used herein, shall be the maximum landing weight approved by the Federal
Aviation Administration for landing such aircraft at the Airport.
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LEASE
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MICROFILMED
'DATEWR 1 8 1979
REEL /r
THIS LEASE, executed on this 6i day of
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 AS 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
of other airport 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
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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
charter service, aircraft
and aircraft repairs
rental, miscellanous
and servicing,
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 earlier termination, as hereinafter
provided, the term of this agreement shall be for a period of
five (5) years, commencing January 1, 1976, and ending on
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-
ments 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
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Labor Statistics, Department of Labor, through comparing
the index of December 31, 1977 with the index on December 31,
19� 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 own
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 untenantable,
Lessee's scheduled flight operations may continue.
7. TERMINATION BY LESSEE: Lessee may cancel this agreement
upon ninety (90) days written notice to Lessor at its election
to cancel upon the occurrence of any of the following events:
(a) Impairment of Lessee's authority to operate
scheduled operations;
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(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;
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(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 wear
and tear.
Except as otherwise provided in this agreement, all
fixtures, improvements, equipment, and other property brought,
installed, elected, or placed by Lessee in, on or about the
airport and premises leased hereunder shall be deemed the
personalty and remain the property of Lessee. Lessee shall
have the right at any time during the term of this agreement
and for an additional period of thirty (30) days after the
expiration or other termination of this agreement to remove
any or all of such property from the airport, subject, however,
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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.
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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 cglicellation 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 agrees 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.
CITY OF FAYETTEVILLE, ARKANSAS
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Plus exisiting fuel
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EXHIBIT "A"
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