HomeMy WebLinkAbout95-81 RESOLUTIONRESOLUTION NO. 95'21
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A RESOLUTION AUTHORIZING THE MAYOR AND CITY CLERK
TO EXECUTE A LEASE WITH SCHEDULED SKYWAYS, INC.
d/b/a FAYETTEVILLE FLYING SERVICE FOR USE OF FACILITIES
AT DRAKE FIELD TO CONDUCT A FIXED BASE OPERATION.
BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
That the Mayor and City Clerk are hereby authorized and
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directed to execute a lease with Schedule Skyways, Inc. d/b/a.
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Fayetteville Flying Service for facilities at Drake Field to
provide a fixed base operation. A copy of the lease authorized
for execution hereby is attached hereto marked Exhibit
made a part hereof.
PASSED AND APPROVED this (y day of 1Q, 04
1981.
FATTEST:
x' CITYt GLERK
"?.>. 'City a
APPROVED:
and
EE
ec°
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THIS LEASE
19 81, between
LEASE
, executed on this 12th day of September
the City of Fayetteville, Arkansas, a municipal
corporation, hereinafter called "Lessor", and Scheduled
Skyways, Inc., an Arkansas business corporation, d/b/a
Fayetteville Flying Service, 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
to do business under
of Arkansas; and
WHEREAS, Lessee desires to establish a Fixed Base
Operation at the Airport and to use the facilities at the
Airport in connection with its Fixed Base Operation; 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) Approximately 2,904 square feet (more or
less) of space in the Old Drake Field Terminal Building
in Fayetteville, Arkansas, designated on Exhibit "A"
attached hereto „less and except that portion under
lease to the Federal Aviation Administration.
is a corporation organized and authorized
and by virtue of the laws of the State
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(b) The exlusive use of the old wooden hangar
immediately North of the Old Drake Field Terminal
Building hereinabove described in paragraph 1(a) consisting
of approximately 21,000.square feet plus all surrounding
aircraft apron space marked "F.B.O. Aircraft Parking"
on the plat attached hereto marked Exhibit "B" and made
a part hereof.
(c) Aircraft apron space directly east of the old
terminal building designated on Exhibit "A" attached
hereto.
(d) The entire parking lot located directly west
of the old terminal building and described in Exhibit
"A" attached hereto. The use of this space shall be
for automobile parking and delivery and receiving
vehicles only. Should Lessor determine that Lessee
needs additional aircraft ramp space, Lessor will
convert the parking lot, or a part thereof, to aircraft
ramp space for use by Lessee by December 31, 1981, or
as soon thereafter as possible.
Lessor hereby grants Lessee the right of first refusal
to lease the space in the Old Terminal Building presently
occupied by the Federal Aviation Administration at such time
as the FAA vacates the premises; the rental rate for said
premises shall be the same rate being paid Scheduled Skyways
for, the premises described in paragraph (a) above; said rental
rate shall be subject to the escalator clause. contained
herein.
2. AUTHORIZATION. Lessor authorizes Lessee to use the
foregoing facilities in connection with its Fixed Base
Operation, which operation shall be subject to Lessor's
Minimum Standards for Commercial Aeronautical Activities at
Drake Field which are incorporated herein by reference
thereto and made a part hereof as if set out word for word.
Lessor specifically authorizes Lessee tooperate the same
for profit and to make reasonable charges to the aviation
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users and general public for all services rendered by Lessee,
including but not limited to hangar rental, parking fees of
aircraft, fuel and aircraft repairs and servicing, flight
school, charter service, aircraft rental and sales, miscellaneous
sales of parts and provisions required by aircraft, air
crews and passengers, and any other service ordinarily and
reasonably offered by Fixed Base Operators; provided Lessor
does not, by this agreement, authorize Lessee to operate
general food services; but Lessee may install vending machines
for foodtand beverages.
3. TERM. Subject to earlier termination as hereinafter
provided, the initial term of this lease and Lessee's obligation
to pay rent hereunder shall commence on the execution date
hereof. The term of this lease shall be for a period of
three (3) years. Lessor hereby grants Lessee an option to
extend the term of this lease for up to four additional three-
year terms. Any such extension shall be subject to the terms of
this agreement, including the escalator clause contained herein;
provided, theconsideration payable Lessor shall be set by
Lessor. Lessee shall give Lessor written notice of Lessee's
intent to exercise this option.at least 60 days prior to the
expiration of the lease term. Within 15 days from receipt of
said notice, Lessor shall advise Lessee in writing as to the
consideration payable if the lease term is extended. Lessee
shall then have 15 days within which to exercise the option by
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giving written notice to Lessor.
If, upon termination of this lease, Lessee continues to
occupy the demised premises, a tenancy from month to month
shall be deemed in effect, which tenancy may be cancelled by
either party by giving 30 days written notice.
4. CONSIDERATION. In consideration for the use of the
demised premises and in consideration of the privilege of
serving as a Fixed Base Operator at the Airport, Lessee
agrees to pay Lessor the following:
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(a) A sum equivalent'to $5.80 per square foot per
year for those premises designated in paragraph 1(a) of
this lease plus two percent (2%) of gross sales per
month or $2,000.00 per year, whichever is greater. The
term "gross sales" shall include, but shall not be
limited to, sundry sales, oil and lubricants, aircraft
charter and taxi service, aircraft engine, airframe and
accessory sales and maintenance, aircraft rental,
flight training, aircraft storage, and specialized
services; provided, the term "gross sales" shall not
include the sale of fuel or new and used aircraft. All
sums payable hereunder shall be paid in monthly installments.
(b) $600.00 per month for the old wooden hangar
described in paragraph 1(b).
(c) For the privilege of serving as a Fixed Base
Operator at the Airport, the sum of $400.00 per month
plus a general aviation and gasoline tax equivalent to
three cents per gallon on all aviation fuel and gasoline
fuel delivered to Drake Field each month. Said flowage
fee maybe increased by Lessor after December 31, 1982
by written notice to Lessee stating the amount of the
increase and the effective date thereof. Lessee shall
present the City withbills of lading for all fuel
delivered to Drake Field and remit the appropriate
general aviation and gasoline tax by the 17th day of
the succeeding month.
All sums payable hereunder shall be paid by the 17th
of the succeeding month. In the event of late payment, a
ten percent (10%) penalty, compounded monthly, shall be due
and payable immediately.
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The consideration payable to Lessor for the year beginning
September 12, 1982, shall be the amount resulting by adjusting
the basic consideration payable under paragraphs (a)(b) and
(c) above during the initial year of this lease 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 June 30, 1982,
with the index on June 30, 1981.
The consideration payable to Lessor for the year beginning
September 12, 1983, shall be the amount resulting by adjusting
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the consideration payable for the year beginning September 12,
1982, 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 June 30, 1983 with the index on June 30, 1982.
Lessee shall maintain at all times an up-to-date record
of the true and complete accounts of all sales and business
transacted by Lessee. Within seventeen (17) days from the
last day of the proceeding month, Lessee shall submit to
Lessor a certified statement reflecting Lessee's gross
sales, as defined herein, for said preceeding month and
shall remit the amount due under this lease to Lessor.
Lessee's records shall be open for inspection by Lessor or
any authorized representative of Lessor at all reasonable
hours. Lessee agrees to maintain a separate set of books
for Lessee's operations at the Airport, which books shall be
kept in accordance with generally accepted accounting practices
and shall be maintained ina manner which will accurately
reflect the amounts due Lessor under this lease. Lessee
agrees to provide Lessor an annual audited statement of
revenues received, which statement shall be prepared by an
independent certified public accountant at Lessee's expense.
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5. IMPROVEMENTS. Lessee shall bear the cost of all
improvements or additions made to the interior or exterior
of the buildings on the leased premises. No improvements or
additions to any part of the leased premises shall be made
by Lessee without the prior written approval of Lessor's
Airport Manager.
6. NON-DISCRIMINATION. Lessee will not, on the gounds
of race, color, creed, national origin, sex or handicap
discriminate or permit discrimination against any person or
group of persons in any manner prohibited by Title VI of the
Civil Rights Act of 1964 and Part 21 of the Regulations of
the Office of the Secretary of Transportation as such are
now worded or may hereafter be amended. Lessor reserves the
right to take such action as the United States Government
may direct to enforce this covenant.
Lessee agrees to furnish on a fair, equal and non-
discriminating basis to all users thereof,and to charge
fair, reasonable and non -discriminating prices for each unit
of service.
7. DAMAGE OR DESTRUCTION OF PREMISES.
(a) Lessor agrees to obtain and keep in force
throughout the term of the lease fire and extended
coverage insurance in an amount approved by Lessor. If
the Old Terminal Building shall be damaged or destroyed
by fire or other casualty, such structure shall be
repaired or reconstructed with due diligence by Lessor
at its own cost and expense, and the rent payable with
respectto the premises on which such structure is
located shall be proportionately paid up to the time of
suchdamage or destruction and shall thenceforth cease
until such time as the building shall be fully restored.
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to a tenable condition. If operations continue, in
whole or in part, the rent payable with respect to the
premises on which such structure is located shall be
prorated accordingly and continue to be paid to Lessor.
(b) White Hangar: This structure is leased "as -
is, where -is". If the White Hangar shall be condemned or
damaged ordestroyed by fire or other casualty, the
lump sum payable with respect to the White Hangar shall
cease and that part of the lease concerning the White
Hangar shall terminate. Upon termination of this lease the
White Hanger shall be in substantially the same condition as
on the execution date hereof, normal wear and tear excepted.
8. UTILITIES. Lessee shall be responsible for the
payment of all utilities on the leased premises, including
electrical bills, natural gas bills, water and sewer bills
and sanitation services. Presently, the other tenant in the
Old Drake Field Terminal Building is the Federal Aviation
Administration. The City of Fayetteville has a current
utility agreement with the FAA which will expire September 30,
1981. The utility payments paid to the City by the FAA for
their space in the Old Drake Field Terminal Building shall
be remitted to Lessee. It shall be the responsibility
of the Lessee to negotiate utility payments to be paid by
the FAA or any other tenant who jointly occupies the Old
Terminal Building as of October 1, 1981. These utility
charges will be in addition to the proposed rentals and charges
described above and shall be based, as accurately as possible,
upon actual cost to Lessee.
9. MAINTENANCE.
La)_ Lessee will provide all maintenance and custodial
service for that .portion'of the '.Old'TPrth nal' Building 'leased to then,
at Lessee's own:cost:and expense,lessee -will have"full
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responsibility for all the maintenance on the White
Hangar.
(b) The White Hangar is leased "as -is, where -is".
(c) Old Terminal Building Only: Lessor agrees
that it will keep and maintain the exterior of the Old
Terminal Building, including the roof,, exterior walls
and exterior plumbing thereof, in good condition and
repair, and agrees that if the roof or any part of the
exterior walls or exterior plumbing of said building
thereof shall become defective or damaged at any time
during the term due to ordinary wear and tear and not
due to negligence of Lessee or Lessee's agents or
customers, upon notice from the Lessee, Lessor.will.;
immediately cause repairs to be made and restore the
defective portions to good condition. The glass and
doors will be in good condition when the lease takes
effect. After that time, Lessee shall be responsible for
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their maintenance.
(d) Old Terminal Building and White Hangar:
Lessor will not be responsible for or pay for any expense
which might arise due to the installation and/or removal
of antenna, radio signal or receiving towers or related
facilities installed on the roof now or hereafter.
Lessee shall be responsible for the maintenance
and normal operating condition of all heating, electrical
and air conditioning equipment and interior plumbing
on the premises used by Lessee. Lessor shall be
responsibleonly for maior maintenance of the existing
equipment in the mechanical room of the Old Terminal
Building. Mayor, as used herein, shall mean replacement
of the heating and air conditioning units or compressor
units when deemed necessary by Lessor.
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10. AUTOMOBILE PARKING. Automobile parking spaces will
be available for use by Lessee, Lessee's employees, or
Lessee's customers adjacent to the Old Terminal Building on
the west side and also adjacent to the White Hangar and
apron space as depicted on Exhibit "B". Parking will be
strictly prohibited for persons who provide or receive any
services conducted at the new airport terminal building.
11. TERMINATION BY LESSEE: Lessee may cancel this
agreement upon ninety (90) days written notice to Lessor of
its election to cancel upon the occurrence of any of the
following events:
(a) The Federal Aviation Administration or any
other governmental agency significantly altering,
operating requirements. at Drake Field making Lessee's
operation undesirable.
(b) Court action closing Drake Field for more
than thirty (30) days.
(c) Substantial and continued breach by Lessor of
its obligation under this agreement.
(d) Inability of Lessee to utilize the facilities
granted hereunder in a reasonable and useful manner due
to action of Lessor or any court or administrative
agency with jurisdiction.
(e) Assumption of control of Drake Field by the
United .States Government or any of its agencies that
prevents Lessee's normal operations as a fixed base
operator.
NO WAIVER OR DEFAULT BY LESSEE OF ANY OF THE TERMS OF
CONDITIONS HEREOF TO BE PERFORMED KEPT AND OBSERVED BY
LESSOR SHALL BE CONSTRUED TO BE OR ACT AS A WAIVER OF ANY
SUBSEQUENT DEFAULT OF ANY OF THE TERMS OR CONDITIONS HEREIN
CONTAINED TO BE PERFORMED KEPT AND OBSERVED BY LESSOR.
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12. TERMINATION BY LESSOR. If Lessee fails to make any
payment due hereunder within thirty (30) 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 hereunder
by operation of law;
(e) The failure, by Lessee, to meet Lessor's
Minimum Standards for Commercial Aeronautical Activities
at Drake Field within 30 days from receipt of written notice
from Lessor..
NO WAIVER OR DEFAULT BY LESSOR OF ANY OF THE TERMS OF
CONDITIONS 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 OR CONDITIONS HEREIN
CONTAINED TO BE PERFORMED, KEPT AND OBSERVED BY LESSEE.
13. 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
Premise granted herein in good condition except for the
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, or about the
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Airport and the premises leased hereunder and affixed thereto
shall be deemed the personalty
the
the
Lessor. Lessee shall have
term of. this agreement and
and
the
for
remain the property of
right at all times during
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 obligations to
repair all damage, if any resulting from such removal. Any
and all property not removed by Lessee prior to the expira-
tion 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..
14. 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 effect 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
right and obligations contained in the valid covenant.
15. INSURANCE. Lessee agrees to carry general public
liability insurance and hanger keepers insurance in the
following amounts: -
General public •liability insurance
Hanger Keeper's liability insurance
$ 2,000,000
$ 2,000,000
Lessor agrees to carry property damage insurance on the
main structures. Lessee agrees to add Lessor as an insured
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under Lessee's insurance policy at the Airport and to maintain
said policy in force throughout the term of this lease.
Lessee shall file a certificate of insurance for all required
insurance with the City Clerk of Lessor. Lessee agrees to
notify Lessor in writing as to any amendments to or cancellation
of said policy.
16. The outside storage of supplies or equipment on the
leased premises shall be prohibited with the exception of
equipment necessary to service air operations on the east
side of the leased buildings. Lessee shall mow the grounds
adjacent to the leased buildings and parking areas.
17. This lease shall not be construed to grant an
exclusive right within the meaning of Section 308 of the
Federal Aviation,Act of 1958.
.18. FEDERAL GRANTS. In the event any of the activities
of Lessee effect Lessor in connection with its efforts to
obtain grants or funds from federal agencies, the Lessee
agrees to confirm its activities so as to afford Lessor the
greatest amount of grant available so long as it does not
materiallyprejudice the Lessee in his respective rights and
obligations contained in this agreement.
19. 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.
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20. Absolutely no portable buildings, mobile homes,
or any other readily movable=building shall be permitted on
the demised premises without the prior written approval
of Lessor's Airport Manager.
21. Lessee shall fully comply with all rules, regulations
and laws applicable to airports served by certificated air
carriers and with all ordinances of Lessor.
22. 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.
23. THIS AGREEMENT shall intif& 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 the year and date first above written.
Anr
4;r ;=ATTEST;.
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f Car -.;5 ., ` K/
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'City. Clerk
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CITY OF FAYETTEVILLE, ARKANSAS
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LED SflWAYS, INC
President
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EXHIBIT "B"
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