HomeMy WebLinkAbout96-81 RESOLUTIONmr
0
i
•
•
RESOLUTION NO. g6-11
A RESOLUTION AUTHORIZING THE MAYOR AND CITY CLERK TO
EXECUTE A LEASE WITH SCHEDULED SKYWAYS, INC. FOR
AIRCRAFT RAMP AND PARKING SPACE AND FOR FUEL FARM
SPACE AT DRAKE FIELD.
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 a lease with Scheduled Skyways, Inc. for
aircraft ramp and parking space and for fuel farm space at
Drake Field. A copy of the lease authorized for execution
hereby is attached hereto marked Exhibit and made a part
hereof.
PASSED AND APPROVED this 70.. day of
1981.
ATTEST:
Z•212,7 CONI , JJ
CITY; CLERK
rt
4147
APPROVED:
a fa x
OY
RVJGOFD
'i1�1GA�� SS Mtche
CC% •
.met
t; ac. T4
tie
et a>e tt
G`y 4y of t' 1
G�`y °{ *Coeey Gi y Op: ' 6 t"
4ot tVens
je e a`
1 tbs c
.n.P
04E.t e .N W s tnY
t c .,c gespI -14.1t-4(\e5
tcete ett'�ii in iY ce
by ecot3 Ot6°
et
o4e is )9 42Ae
4 X a Seal
ba
. aY
sOct
Qoa Eg
Gk\et1c
C;�t9
�LCROri�-t,"�E�
•
12.01
LEAS E
THIS LEASE, executed on this 12thday of September
•
1981, 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
referred to as the "Airport"; 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 demises
to Lessee the following:
(a) The exclusive use of the ramp and parking
space designated on Exhibit "A" attached hereto.
(b) The exclusive use of the space now occupied
by Lessee's fuel farm designated on Exhibit "A" attached
hereto.
In the event Lessee shall cease serving as a fixed base
operator at the airport, Lessee shall not sell or trade fuel
to any person and Lessee agrees to lease any excess fuel
farm capacity to a fixed base operator at a reasonable
consideration. The term "excess fuel farm capacity" shall
mean that capacity not needed by Lessee for its flight
operations.
Vehicle parking on the demised premises shall be
prohibited for any person providing or receiving any service
at the new Airport Terminal Building.
VHI'BIT f
EXHIBIT ,f.
12.02
2. Authorization. Lessor authorizes Lessee to
use the foregoing facilities in connection with its scheduled
flight operations and with its fixed base operation.
3. Term. Subject to earlier termination, as
hereinafter provided, the term of this agreement shall be
for a period of three (3) years commencing on the execution
date hereof. 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, the consideration 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 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. Rentals and Charges. Lessee shall pay to
•
Lessor the sum of $612.50 per month ($500.00 aircraft parking
and $112.50 for auto parking) payable in advance on or
before the 10th day of the month. The first such
payment, for the month of September, 1981, shall be due on
or before September 28, 1981. In the event of late payment,
a ten percent (10`/,) penalty, compounded monthly, shall be due
and payable immediately.
?er- 511--"'"s
I •
12.03
The consideration payable to Lessor for the year
beginning September 12, 1982, shall be the amount resulting
by adjusting the basic consideration payable under this
paragraph 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
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.
5. Lessee agrees at all times to maintain the
demised premises in good, safe, and attractive condition.
6."Burrender 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.
Lessee hereby grants Lessor the right of first refusal
to purchase all gasoline storage tanks, gasoline pumps, and
other accessories thereto, then owned by Lessee and'lpcated
on the demised premises. The purchase price for said property
shall be the fair market value at the time of purchase.
Lessor may exercise its right hereunder by giving Lessee
written notice thereof within ten (10) days from receipt of
written notice from Lessee.
•
7. Termination. In the event Lessee constructs,
or leases From Lessor, new or additional administrative
•
•
•
12.04
facilities, hanger space, or in the event Lessee extends the
existing hanger space lease, Lessor agrees to extend the term of
this lease to coincide with the term of any lease related to such
additional administrative facilities, hanger space, or extension
of existing hanger lease.
In the event Lessee relocates Lessee's administrative offices
or maintenance operation to the east side of the airport, Lessee's
right to use the premises described in paragraph 1 (a) shall
terminate immediately and Lessee's obligation to pay rent under
paragraph 4 shall terminate.
8. 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.
9. 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.
10. Insurance. Lessee agrees to add Lessor as an
insured under Lessee's existing General Public Liability
Insurance Policy and to maintain said policy in force throughout
the term of this lease. Lessor shall file a certificate of
insurance with the City Clerk of Lessor. Lessee agrees to
notify Lessor in writing as to any amendments to or cancellation
of said policy.
•
12.05
11. Notices. Notices to Lessor provided herein shall
be sufficient if sent by registered mail, addressed to
Lessor at its regular mailing address, Postal Drawe 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.
12. This agreement shall inure to the benefit of and
be binding upon thesuccessors, assigns and legal representatives
of the parties.
IN WITNESS WHEREOF, the parties heretohave executed
this Agreement on the year and date first above written.
ATTEST:
City Clerk
ATTEST:
Secretary
CITY OF FAYETTEVILLE, ARKANSAS
By:
1
Yo
SCHEDULED SKYWAYS, INC.
By:
Title:
•
12.06
EXHIBIT "A"
•
•
•
LEASE
THIS LEASE, executed on this 12th day of September
1981, 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
referred to as the "Airport"; 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 demises
to Lessee the following:
(a) The exclusive use of the ramp and parking
space designated on Exhibit "A" attached hereto.
(b) The exclusive use of the space now occupied
by Lessee's fuel farm designated on Exhibit "A" attached
hereto.
In the event Lessee shall cease serving as a fixed base
operator at the airport, Lessee shall not sell or trade fuel
to any person and Lessee agrees to lease any excess fuel
farm capacity to a fixed base operator at a reasonable
consideration. The term "excess fuel farm capacity" shall
mean that capacity not needed by Lessee for its flight
operations.
Vehicle parking on the demised premises shall be
prohibited for any person providing or receiving any service
at the new Airport Terminal Building.
•
- 2
2. Authorization. Lessor authorizes Lessee to
use the foregoing facilities in connection with its scheduled
flight operations and with its fixed base operation.
3. Term. Subject to earlier termination, as
hereinafter provided, the term of this agreement shall be
for a period of three (3) years commencing on the execution
date hereof. 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, the consideration 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 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. Rentals and Charges. Lessee shall pay to
Lessor the sum of $612.50 per month ($500.00 aircraft parking
and $112.50 for auto parking) payable in advance on or
before the 10th day of the month: The -first such
payment, for the month of September, 1981, shall be due on
or before September 28, 1981. In the event of late payment,
a ten percent (10%) penalty, compounded monthly, shall be due
and payable immediately.
•
•
•
- 3
The consideration payable to Lessor for the year
beginning September 12, 1982, shall be the amount resulting
by adjusting the basicconsideration payable under this
paragraph 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
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.
5. Lessee agrees at all times to maintain the
demised premises in good, safe, and attractive condition.
6. 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.
Lessee hereby grants Lessor the right of first refusal
to purchase all gasoline storage tanks, gasoline pumps, and
other accessories thereto, then owned by Lessee and located
on the demised premises. The purchase price for said property
shall be the fair market value at the time of purchase.
Lessor may exercise its right hereunder by giving Lessee
written notice thereof within ten (10) days from receipt of
written notice from Lessee.
7. Termination. In the event Lessee constructs,
or leases from Lessor, new or additional administrative
•
•
- 4 -
•
facilities, hanger space, or in the event Lessee extends the
existing hanger space lease, Lessor agrees to extend the term of
this lease to coincide with the term of any lease related to such
additional administrative facilities, hanger space, or extension
of existing hanger lease.
In the event Lessee relocates Lessee's administrative offices
and/or maintenance operation to the east side of the airport, Lessee's
right to use the premises described in paragraph 1 (a) shall
terminate immediately and Lessee's obligation to pay rent under
paragraph 4 shall terminate.
8. 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.
9. 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.
10. Insurance. Lessee agrees to add Lessor as an
insured under Lessee's existing General Public Liability
Insurance Policy and to maintain said policy in force throughout
the term of this lease. Lessor shall file a certificate of
insurance with. the City Clerk of Lessor. Lessee agrees to
notify Lessor in writing as to any amendments to or cancellation
of said policy.
- 5
•
ara.,4-timptef
11. Notices. Notices to Lessor provided herein shall
be sufficient if sent by registered mail, addressed to
Lessor at its regular mailing address, Postal Drawe 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.
12. 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.
fl S+�T:
_ 0 y/ �o �.
GLGtrn�
Cityy Glerk
i , }
ATTEST:
CITY OF FAYETTEVILLE, ARKANSAS
SC;DULED SKYWAYS, INC.
By:
Title: Vlcg 9npS (k.j •z -LS c.t
f rt.' ,�, '�'.�!'E `-c�'r.1 - s as
.._ ,,. -.
r
I
i
1
1
3
f
•
1
U;
•-
EXHIBIT.
IF
c