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Home My WebLink About71-81 RESOLUTION• S `_ r 6 . • RESOLUTION NO. �i1-81 A RESOLUTION AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE TWO MODIFICATIONS OF LEASE AGREEMENTS TO EXTEND THE TERM OF TWO LEASE AGREEMENTS BETWEEN THE CITY AND SCHEDULED SKYWAYS, INC. 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 the Modifications of Lease Agreements with Scheduled Skyways, Inc. attached hereto marked Exhibits "A" and PASSED AND APPROVED this LI day of _.0 r,.t, , 1981. 1:;-S v„CITWCLERK • APPROVED: • MAYOR 44/ • CERTIFICATE OF RECORD State of Arkansas City of Fayetteville ( SS I, Vivian Kcettel, City Clerk and Ex -Officio recorder for the City of Fayetteville, do here- by certify that the annexed or foregoing is of record in my office and the . :ne, r - pear(s� in Ordinance & Resolution hoop —zt page 5111 Witness my hand . d seal this 31 day of 19 e-/ . City Clerk and Ex-Offi o Recorder 'i1Cr.QtJkJ$Ati.7 • • MODIFICATION OF LEASE AGREEMENT This Modification of Lease Agreement executed this day of , 1981, by and between the City of Fayetteville, Arkansas, hereinafter called Lessor and Scheduled Skyways, Inc., an Arkansas Business Corporation, hereinafter called Lessee. WHEREAS, Lessor and Lessee have previously entered into a Lease Agreement dated December 23, 1980, attached hereto marked Exhibit "A" and made a part hereof; and WHEREAS, Lessor and Lessee desired to modify said Agreement as hereinafter provided. NOW, THEREFORE, it is hereby mutually agreed by and between Lessor and Lessee that the aforesaid Lease Agreement is hereby modified as follows: 1. Paragraph 3 is modified to read as follows: Term. Subject to earlier determination, as hereinafter provided, the term of this agreement shall commence on January 1, 1981, and shall end on the execution date of an agreement between the City of Fayetteville, Arkansas, and Fayetteville Flying Service d/b/a Skyways pursuant to which the Fayetteville Flying Service will serve as fixed base operator'at the Fayette- ville Municipal Airport. This Modification of Lease Agreement executed on the date and year first above written. CITY OF FAYETTEVILLE, ARKANSAS LESSOR ATTEST-: ?j^ U�.YCITY CLERK" ATTEST: � 1 TITLE Administrative Assistant By: SC LE By • iI AIR_ s- 9 os.ig MICROFILMED LEASE THIS LEASE, executed on this 23o( day of ; bif , 1980, between the City of Fayetteville, Arkansas, a municipal coipuration, 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 referred 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 prop°r 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. Nal, 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 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 finite 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. Tenn. Subjett to earlier termination, as hereinafter provided, the term of this Agreement shall be for a period of six (6) months, commencing Januar: 1, 1981, and ending cn June 30, 1981. 4. Rentals and Charges. In consideration of the use of the demised premises, Lessee agrees to pay Lessor 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 promises in a good, safe and attractive' condition. a 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, IPssor agrees that, upon request by Lessee, Lessor shall issue revenue bonds to finance the cost of said relocation construction. Said revenue bonds shall be a special obligation of the Cite payable solely from pledged revenues and shall not be a general obligation of the City 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. 8. Improvement to Hangar. Lessee hereby agrees that the portion of the hangar leased exclusively to Lessee hereunder is taken "as is". Lessor agrees that Lessee may, at its own expense, alter, mrbdify, or otherwise improve said hangar. 9. Surrender of Possession. On the expiration or other termination of this Lease, Lessee's rights hereundershall cease, and Lessee shall surrender possession of the premises granted herein in rood 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. Lesser shall have the right at any time during the term of this Agreciw nt - 3 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 shallbe 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— brators 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 afc'ord Lessor the greatest amount of grant available. • • 4 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 parties shall 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. ATTEST: G�C.i�ic3,.v CITY CLERK CITY OF FtRYETTEVILLE, ARKANSAS By: 71-:(-41 MAYOR SCHEDULED SKYWAYS, INC. 13y: a.ie Title: /'/ey:s�em! • MODIFICATION OF LEASE AGREEMENT This Modification of Lease Agreement executed this day of , 1981, by and between the City of Fayetteville, Arkansas, hereinafter called Lessor and Scheduled Skyways, Inc., an Arkansas Business Corporation, hereinafter called Lessee. WHEREAS, Lessor and Lessee have previously entered into a Lease Agreement dated kalmt ,UW/L, a5 , 1920 attached hereto marked Exhibit 'A" and made a part hereof; and WHEREAS, Lessor and Lessee desired to modify said Agreement as hereinafter provided. NOW, THEREFORE, it is hereby mutually agreed by and between Lessor and Lessee that the aforesaid Lease Agreement is hereby modified as follows: 1. Paragraph 3 is modified to read as follows: Term. Subject to earlier determination, as hereinafter provided, the term of this agreement shall commence on January 1, 1981, and shall end on the execution date of an agreement between the City of Fayetteville, Arkansas, and Fayetteville Flying Service d/b/a Skyways pursuant to which the Fayetteville Flying Service will serve as fixed base operator at the Fayette- ville Municipal Airport.• 1 2. Paragraph 4 is modified to read as follows: Rentals and Charges. In consideration of the use of the wooden aircraft hanger and the aircraft parking apron, Lessee shall pay to Lessor the sum of Five Hundred Eight Dollars ($508.00) per month and One Hundred Twelve Dollars Fifty Cents ($112.50) per month for parking space payable in advance on or before the tenth day of the preceding month. In addition, Lessee shall pay Lessor as a•local aviation and gasoline tax on all fuel delivered to Drake Field, a flowage fee in the sum of Two Cents ($.02) per gallon. Lessee shall prcocnt to Loaoor a oopy of cnoh bikl of lading for LIAL.artIa 13t Vi 'Irah '-C ., remit the flowage fee payable hereinunder to the City by the tenth day of the succeeding month. In consideration of the use of the space on which Lessee's fuel farm is located, Lessee shall pay to Lessor the sum of One Hundred Dollars ($100.00) per month payable on or before the tenth 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. This Modification of Lease Agreement executed on the date and year first above written. CITY OF FAYETTEVILLE, ARKANSAS LESSOR ATTEST .r t n ;� .esAir By: CITY CLERK r ATTEST: TITLE Administrative Assistant SCHEDULED SKYWAYS, INC. LESSEE By: • Oran C& • LEASE THIS LEAST', executed on this 134 day of D2avnblar p sib MICROFILMED 1980, between the City of Fayetteville, Arkansas, a municipal corporation, hereinafter called "Lessor", and Scheduled Skyways, Inc., an Arkansas business corporation, hereinafter called "Lessee". W ITNESSET H: WHEREAS, Lessor is the owner of an aizport known as Drake Field in the City of Fayetteville, Arkansas, hereinafter referred to as the "Airport"; and WHIT1AS, 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 [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. Leased Premises Lessor hereby lets and devises 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 perking space designated on Exhibit "A" attached hereto, subject to the rights of other ailpurt 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 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 Airport Terninal Building. 2. Authorization. Lessor authorizes Iessee 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 cibtic for all services rendered 1 Lessee as a fixed base oxrator, Provided Lessor doer not -his • Agreement, authorize Lessee to op'cr ata' r;cneral food or fast foerl services. Vending machines may be installed upon approval of the Airport ..ana:cr. 3. Tenn. Subject to earlier termination, as hereinafter provided, the term of this agreement shall be for a period of six (6) nenths, coir ening 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 sum of $508.00 mr 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 Lessor 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 Lessee'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. Lessee agrees at all times to maintain the demised prcrises in good,safe, and attractive condition. Lessee agrees to keep all crass arcs neatly cut at all times 6. Construction Reimbursement. The parties recognize that Lessee must relocate from the old white aircraft hangar on or bcforc• t;e ccpiratic•h of this lease agreement. Lessee agrees to be responsible for the cot and expense of all such relocation construction If this con5tructirn i:, to on airltrt. property, Lessor agrees that, upon request by Lessee, ti s;:c:- issue revenue bonds to finance the cost of said relocation constn;Jticn. Said revenue bonds shall 1x a special ei,lie;ation cf the City pa.;:bic pledged revenues and shall not be .: General obligation cf the Cir. • St ;, Damace or destruction of Premises. If that no ion o f the wooden hangar leased to Lessee hereunder shall be destroyed or shall be damaged to such extent as to become u ntenantable, 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". Lessor agrees that Lessee may, at its own expense, alter, modify, or otherwise improve said hangar. 9, Surrender of Possession. On the expiration or o ther 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, 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 ot: this Aereement, Lessee herob•, grants ; .,sor ..n option to purchase all gasolint 5torac;r, tanfls then (.•_ i tr bas,. cpurat .-. asol int pu:r.u: it:ci other accessories theret.p, I.ossoi• an, i )per.'.tiO:. as a fixe chase s3 i.. prone rr shall • the fair mar et value the time 0 exercise granted hereby. Lessor may exercise apt aption .._rcunde: giving Lessee written notice thereof within te:: l0) 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 bond:., the proceeds of which shall be used to finance constr.:ction 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 paid Lessor by Lessee for the use o= said new 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 ::oz 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 ispute between Lesser Lessee relative to the provisions of this Lease shall be subject arbitration. Each arty shall select an the two arbitrators so selected shall select a thi__. arbitrator between'them, the controversy being heard ....ree arbitrators so selected. The decision of shall be . .a'_ and bindinc: on both Lessor *shall beat- the cost of arbit.:ation equally. beaw...e 12. Insurance. Lessuc to a cc i.._•ss.. insured thucr Lessee e::i.,--.. flan::a! Inc.; i :cc. Policy :Ind t..t this cr licy" the C li w S • • - 13. Federal Grants. In the event uny of the activities of Lessee affect Lessor in c,onrrection 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. ATITST : �91. - CITY CLERK 9 CITY OF FAYETTEVILLC; ARKANSAS By:4;11 MAYOR G SCHEDULED .SKYWAYS, I .: 1itit. 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