HomeMy WebLinkAbout125-80 RESOLUTIONro
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RESOLUTION NO 1,23'
,(Q0
A RESOLUTION AUTHORIZING THE MAYOR AND CITY CLERK
TO EXECUTE LEASE AGREEMENTS WITH SCHEDULED SKYWAYS,
INC. FOR SPACE IN THE OLD HANGAR BUILDING AT DRAKE
FIELD.
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BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
That the Mayor and City Clerk are hereby authorized
and directed to execute two leases with Scheduled Skyways,
Inc. for space in the Old Hangar Building for use by
Scheduled Skyways, Inc. in its fixed base operation and for
administrative office space. A copy of the leases authorized
for execution hereby are attached hereto marked Exhibits
and "B" and made a part hereof.
PASSED AND APPROVED this /314day of aOJz.)
198t.
4ATTEST:
APPROVED:
II A 11
,:40,62 o itebe MICROFILMED
'CITY CLE
•P'
.3
LEASE
THIS LEASE, executed on this 24:54 day of D2ce rot
1980, 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, hereinaf+Pr referred to as 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 for its fixed base
operations; and
NHEREAS, Lessor is willing to lease to Lessee a portion of the
Airport premises
NCW, 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 that portion of the wooden aircraft
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 space now occupied by Lessee's
fuel farm designated on Exhibit "B" attached hereto.
(c) The exclusive use of one-half of the parking lot located
west of the perimeter fence extending north from the old white hangar
to Lessee's maintenance hangar.
Vehicle parking on the demised premises shall be prohibited for any
person providing or receiving any service at the new Aiipvrt Terminal Building.
2. Authorization. Tessor authorizes Lessee to use the foregoing
facilities in connection with 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 as a fixed base operator, provided Lessor does not, by this
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Agreement, authorize Lessee to operate general food or fast food services.
Vending machines may be installed upon approval of the Airport Manager.
3. Term. Subject to earlier termination, as hereinafter provided,
the term of this agreement shall be for a period of six (6) months,
commencing January 1, 1981 and ending on June 30, 1981.
4. Rentals and Charges. In consideration of the use of the wooden
aircraft hanger and the aircraft parking apron, Lessee shall pay to Lessor
the sun of $508.00 per month and $112.50 per month for parking space
payable in advance on or before the 10th day of the preceeding month. The
first such payment shall be due on or before December 10, 1980. In
addition, Lessee shall pay Tessor a flowage fee in the sum of 2 cents
per gallon as a local aviation and gasoline tax on all fuel sold per month
to all aviation users, including Lessee, and to the general public at the
Airport. The first such payment shall be due on or before February 10, 1981,
with each payment thereafter shall be due on or before the 10th day of the
succeeding month. In consideration of the use of the space on which Tessee's
fuel farm is located, lessee shall pay to Lessor the sum of $100.00 per
month. The first such payment shall be due on or before February 10, 1980,
and each payment thereafter shall be due on or before the 10th day of the
succeeding month. Lessee shall be entitled to a monthly credit on said
rent for fuel farm space equivalent to the amount of local aviation and
gasoline tax paid Lessor by Lessee the previous month. Said credit shall not
be cumulative.
5. Tessee agrees at all times to maintain the demised premises in
good, safe, and attractive condition. Tessee agrees to keep all grass areas
neatly cut at all times.
6. Construction Reimbursement. The parties recognize that Lessee
must relocate from the old white aircraft hangar on or before the expiration
of this lease agreement. Lessee agrees to be responsible for the cost and
expense of all•such relocation construction. If this construction is to be
on airport property, Lessor agrees that, upon request by Tessee, Lessor shall
issue revenue bonds to finance the cost of said relocation construction Said
revenue bonds shall be a special obligation of the City payable solely from
pledged revenues and shall not be a general obligation of the City.
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7, .Damage or destruction of Premises. If that portion
of the wooden hangar -leased to Lessee hereunder shall be
destroyed or shall be damaged to such extent as to become
untenantable, this Lease shall immediately terminate and
Lessor shall have ten (10) days from receipt of notice from
Lessee to exercise its option under Paragraph 8 hereof.
8. Improvements to Hangar. Lessee hereby agrees that
the portion of the hangar leased exclusively to Lessee hereunder
is taken "as is". Lessoragrees- that Lessee may, at its own
expense, alter, modify, or otherwise improve said hangar.
9, Surrender of Possession. On the expiration or
termination of this Lease, Lessee's rights hereunder
cease, and Lessee shall surrender possession of the
other
shall
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, erected, 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, 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 operator. The purchase price for said property shall be
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the fair 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. In the
event Lessor exercises the option granted hereby, Lessor
agrees, upon Lessee's request, to issue revenue bonds, the
proceeds of which shall be used to finance construction of a
new fuel farm to be used by Lessee. Said revenue bonds
shall be secured by a pledge of, and shall be payable from,
the rentals
fuel farm.
10. 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
invalidity of such covenant, condition or provisions 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.
11. 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
arbitrators 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.
12. 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 cancellation
of said policy.
paid
Lessor by Lessee
for
the
use
of said
new
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13. 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.
14. 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.
15. 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.
16. This agreement shall inure to the benefit of and be
binding upon the successors, assigns and legal representatives
of the parties.
IN WITNESS WHEREOF, the parties hereto have executed
this Agreement on the year and date first above written.
CITX:iCItERK
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CITY OF FAYETTEVILLE, ARKANSAS
By:11/47C1Z-n-
OR
SCHEDULED SKYWAYS, INC.
By:
Title:
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LEASE
THIS LEASE, executed on this 230( day of ! , 1980, between
the City of Fayetteville, Arkansas,
a municipal coiporation, hereinafter
called "Tessor", and Scheduled Skyways, Inc., an Arkansas business corporation,
hereinafter called "lessee".
WITNESSETH:
WHEREAS, Tessor is the caner of an airport known as Drake Field
in the City of Fayetteville, Arkansas, hereinafter referred to as the
"Airport"; and
WHEREAS, Tessee 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 for administrative offices; and
WHEREAS, Lessor is willing to lease to Lessee a portion of the Airport
premises.
NOW, THEREFORE, in consideration of the mutual covenants and conditions
of this Agreement, the parties agree as follows:
1. Teased Premises.
following.
Tessor hereby lets and demises to Lessee the
(a) The exclusive use of that portion of the existing wooden
hangar building designated on Exhibit "A" attached hereto.
(b) The exclusive use of one-half of the parking lot located
west of the perimeter fence extending north from the old white hangar
to Lessee's maintenance hangar.
2. Authorization. Lessor authorizes Lessee to use the foregoing
facilities as administrative offices in connection with its scheduled
flight operations. Vehicle parking on the lot leased to Lessee shall be
prohibited for any person providing or receiving any service at the new
Airport terminal building.
3. Term. Subject to earlier termination, as hereinafter provided,
the term of this Agreement shall be for a period of six (6) months,
connencing January 1, 1981, and ending on June 30, 1981.
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4. Rentals and Charges. In consideration of the use of the demised
premises, Lessee agrees to pay Tessor the sum of $200.00 per month for
administrative office space and $112.50 per month for parking space payable
in advance on or before the 10th day of the preceeding month. The first
such payment shall be due on or before December 10, 1980.
5. Lessee agrees to maintain the demised premises in a good, safe and
attractive condition.
6. Construction Reimbursement. The parties recognize that Lessee
must relocate from the old white aircraft hangar on or before the expiration
of this lease agreement. Lessee agrees to be responsible for the cost and
expense of all such relocation construction. If this construction is to be
on airport property, Lessor agrees that, upon request by Lessee, Lessor shall
issue revenue bonds to finance the cost of said relocation construction. Said
revenue bonds shallbe a special obligation of the City payable solely from
pledged revenues and shall not be a general obligation of the City
7. Damage or Destriictibn of Premises. If that portion of the wooden
hangar leased to TPssee hereunder shall be destroyed or shall be damaged
to such extent as to become untenantable, this Lease shall immediately terminate.
8. Improvement to Hangar. Lessee hereby agrees that the portion of the
hangar leased exclusively to Tsssee hereunder is taken "as is". Lessor
agrees that Lessee may, at its own expense, alter, modify, or otherwise improve
said hangar.
9. Surrender'of-Possession. On the expiration or other termination
of this Lease, TPssee'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, erected, 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
•
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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, 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.
10. 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
invalidity 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.
11. 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.
12. 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.
EMI
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13. 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 partiesshall be deemed incorporated herein by reference.
14. 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.
15. This agreement shall inure to the benefit of and be
binding upon the successors, assigns and legal representatives
of the parties.
IN WITNESS WHEREOF, the parties hereto have executed
this Agreement on the year and date first above written.
4n ATTEST;
Wit:-✓ `�.?.
,.e'er r"" =
CTT�C_LERK
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TEST :,=
•
SRETARY
CITY OF F YETTEVILLE, ARKANSAS
By:
OR
SCHEDULED SKYWAYS, INC.
By:
Title: gP,+�gfm!
Leasect premise
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