HomeMy WebLinkAbout97-81 RESOLUTION. r-
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RESOLUTION NO. 9'741-
A
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A RESOLUTION AUTHORIZING THE MAYOR AND CITY CLERK
TO EXECUTE A MODIFICATION OF LEASE AGREEMENT WITH
SCHEDULED SKYWAYS, INC. TO INCREASE THE MONTHLY
RENTAL PAYABLE FOR SPACE IN THE NEW AIRPORT TERMINAL
BUILDING AND TO-INCREASE'THE MONTHLY LANDING FEE.
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 modification of lease agreement with
Scheduled Skyways, Inc. to increase the monthly rental payable
for space in the new airport terminal building and to increase
the monthly landing fee. A copy of the modification for lease
agreement authorized for execution hereby is attached hereto
marked Exhibit "A" and made a part hereof.
PASSED AND APPROVED this 6 day of (Q
1981.
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�� ..?ATTEST:
C/ f21,CL...
CITYgCLERK
`°aan,
APPROVED:
CERTIFICATE OF. RECORD
State of Arkansas SS
City of Fayetteville
I, Vivian Koettel, 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 same ap-
pears ;in
p-pears;in Ordinance & Resolution book
X 11 at page -J—% e Witness my
hand and seal thi J/CA day of
./
._LS._ --
City Clerk and Ex -Officio Recorder
MODIFICATION OF LEASE AGREEMENT
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This agreement made this 6 day of 4.07714r,J
19g, 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 May 6, 1979, 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 5(A) of said lease is modified by adding
the following:
; provided, the sum of $15.00 per square foot shall
be payable beginning January 1, 1981.
2. Exhibit "B" to said lease is modified by adding
the following:
Beginning July 1, 1981, the landing fee payable
by lessee shall be 33 cents per 1,000 pounds (mclw)
per month.
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.
IN WITNESS WHEREOF, the parties have executed this Modification
of Lease on the day and year first above written.
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ATTEST:
By:
CITY OF FAYETTEVILLE, ARKANSAS
A Municipal Corporatign
By:
SC
o Le, By
Title:
MAYOR
KYWAYS. INC.
Title: V.P. (Al t. L164kr
EXHIBIT A
This Lease executed on
7
1979. between the City
FX�ib(t 4
LEASE
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of Fayetteville. Arkansas, a municipal
corporation. hereinafter called "Lessor" and Scheduled Skyways, Inc., an
Arkansas business cooperation. hereinafter called "Lessee".
The parties recite and declare:
A. Lessor is the owner of an airport known as Drake Field
in the City of Fayetteville, Arkansas, herein referred to as the
"airport
B. Lessee is engaged in the air transportation business and
desires to usc•the facilities of the airport and maintain a base
of operations at the airport.
C. Lessor is willing to lease to Lessee a portion of the,
.airport premises together with such rights and/or privileges
as are sec forth in this agreement.
USE OF AIRPORT: Lessee is granted the use, in common with
others similarly authorized, of the airport, together with all
facilities, equipment, improvements, and services which have been,
or may hereafter, be provided at or in connection with the airport
from time to time, including, but not limited to, the landing
field and any extensions thereof or additions thereto, runways,
aprons, taxi -ways, sewerage and water facilities, flood lights,
landing lights, beacons, control tower, signals, radio -aids, and
all other conveniences for flying, landings, and
2. SPACE
following:
A. The exclusive use of 1926 square feet of office
space in the terminal building at the airport, such space
being more particularly identified as a ticket counter,
operations center, and storage and office space as desig-
nated in Exhibit "A", and the non-exclusive use, in common
with others, of adequate space and facilities adjacent to
the terminal building, consisting of sufficient ground area
to permit the efficient taxiing, servicing, and loading and
unloading of Lessee's aircraft.
take -offs.
IN TERMINAL BUILDING: Lessor grants Lessee the
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B. Lessee,
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its employees, passengers. ruests,
patrons and invitees sha11 also have•the use, in co''on
with others, and under the same term:: and conditions,
of any public space available in the 'Terminal Buildin:;,
or which may be hereafter available, including, but not
limited to, waiting rooms, and rest rooms.
3. RIGHT OF INGRESS AND EGRESS: Lessee shall have at'a11
times full and free right of ingress and egress from the premises
and facilities referred CO herein for Lessee, its employees.
customers, passengers, guests, and other invitees. Such right
Shall also extend to persons or organizations supplying materials
or furnishing services to Lessee, to include vehicles, machinery
and equipment, reasonably required by such persons or organiza-
tions; provided, Lessee, its employees, customers, guests,
passengers, and other invitees, shall be required to park in those
areas designated by Lessor.
4. TERM: Subject to earlier termination, as hereinafter
provided, the term of this agreement shall be for a period of
seventeen (17) years commencing on the date Lessee is granted
beneficial occupancy of the new terminal building, and ending
on December 31, 1996.
5. RENTALS AND CHARGES: Lessee agrees to pay Lessor for'
the use of the premises, facilities, rights, services, and
privileges granted hereunto, rentals and charges according to
the following schedule, which rentals and charges shall be payable
within 20 days from receipt of invoice. All rentals and charges
shall be renegotiated annually as soon after the first-day of the
year as is possible with the newly negotiated rates to be retro-
active to become effective on January 1st of that year.
A. For the exclusive use of- t93'S square feet of
office space in the terminal building, such space being
more particularly identified as a ticket counter, operations
center, storage and office space, and freight handling and
storage room, the sum of $12.00 per square foot per year.
B. Landing fees, according to the terms of Exhibit "B",
attached hereto and made a part hereof, which fees shall be
payable irrespective of the actual number of arrivals or
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t-?, aircri:t '_...... n;s occ::r :schedule changes ;cs
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/ made during each month. extra sec -ices Clown, or co arts':,
/ test inspection. instruction. charter. sight-seeing, ferry
or ocher flights.
C. For overnight parking of aircraft, the total sum of SI25.00
per month during any such month as Lessee's aircraft is scheduled to remain(
overnight at airport. Location of parked aircraft shall be on the apron
adjacent to the public terminal building as designated by the Airport
Manager. Scheduled Skyways, Inc. aircraft based at Drake Field and not
parked on the terminal ram
charges.
p, shall be excluded from overnight parking
- 6. NO ADDITIONAL CHARGES OR FEES: No charges,fees,
or tows, other than those expressly provided for herein,
shall be charged or collected by Lessor from Lessee, or any
other persons for the privilege of entering or leaving the
airport, or, within the limits of the airport, for the
privilege of transporting, loading, unloading, or handling
persons, cargo, property, or mail, in connection with Lessee's
business. .
7. AIRLINE DEREGULATION ACT APPLICABLE- The parties
agree that this Lease is subject to the provisions of the
Airline Deregulation Act of 1973, P.L. 95-504, and the
provisions of said -Act are hereby incorporated herein by
reference thereto.
8. NON-DISCRIMIINATION: Lessee agrees that it will not
discriminate against any person in the operation of its air
transportation service because of race, creed, sex, or
national -origin.
9. TAXES. AND ASSESSMENTS: Lessor shall pay any and
all taxes or special assessments which may be levied or
assessed against (1) the leased premises, including premises
leased to Lessee exclusively and premises leased to Lessee
for its use in common with others, and (2) Lessee's interest
in the leased premises. Lessor also agrees to indemnify
Lessee against any loss or liability resulting from any
claims or lien:; in connection with such taxes and assessments.
10. MAI::TENANCE AND UTILITIES: Lessor shall maintain
and keep in good repair so much of the -premises as is not
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undere xciusi• control o: individual Lessees. ....�..
but n• ot limited to': the terminal building and control tower•
vehicle parking areas, and all roaft.:ays, runways, aprons And
taxiway::. Lessor ::ha1L also maintain and operate all sewcrngc
and water facilities, all electrical and electronic Eaciliti's.
and all such other appurtenances and services as are now or
hereafter connected with the operation of the airport.
Lessee shall maintain and keep in repair so much of thee
airport premises as arc under its exclusive control. Lessee
shall not be required to makeany repairs for damage not caused
by Lessee or normal wear and tear to the structur/
11. OPTION TO LEASE ADDITIONAL SPACE: Lessees, may, with
the approval of lessor, lease for its exclusive use additional
land, improved, or unimproved, chat may be available at the
airport and is not reasonably necessary to the operation or
maintenance of the airport. The use and occupancy by Lessee of
such additional lands shall be subject to all the applicable
provisions of this agreement, and shall be paid for at a rental
rate to be -negotiated.
12. ADDITIONAL AIRPORTS: In the event Lessor constructs
or operates a new airport in the vicinity of the City of Fayette-
ville, Arkansas, Lessee shall have the option to lease. for its.
exclusive use floor space thereof in an amount at least equal
to that provided in this agreement at a rate to be negotiated
at the time Lessee exercises its option. On occupancy by Lessee
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of space in such new terminal building, it may, at its option,
terminate its rights and obligations with respect to all or
any part of its space in the present terminal building by
giving Lessor written notice of such termination.
13. RULES AND REGULATIONS: Lessee agrees to observe and
obey lawful, reasonable rules and regulations with respect to
the use of the leased premises, provided, however, that such
rules and regulations shall be consistent with safety and with
rules, regulations, and orders of the Federal Aviation Adminis-
tration with respect to aircraft operations at the airport; _
and provided further, that such rules and regulations shall
not be inconsistent with the rules and provisions or the procedures
prescribed or approved from time to time by the Federal Aviationr.
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Admbnis isa-iun, with respect to the oper:ltion ilt i.usec S
aircraft at the airport.
14. ,\DVER.TISING ST(...,: A11 advertising : :irn:: instailed b.:
Lessee must be approved by Lessor, and must conform to Lessors
sign ordinance.
15. [BUILDING 6Y LESSEE: Lessee may, at ics own expense,
upon approval by Lessor, such approval not to be unreasonably
withheld, construct, install, alter, modify, and repair any
structure or improvement on premises leased exclusively to
Lessee hereunder. No restrictions shall be placed upon Lessee
as to the architects, contractors or materialmen who may be
employed by it in connection herewith. Such architects,
contractors, or materialmen shall have the right of ingress to
and egress from the leased premises.
In the event Lessee shall construct any building, hangar,
or other structure on premises leased by Lessee, Lessee shall
extend water and/or
shall be liable for
but not limited to,
electricity.
sewer lines to said structure; and Lessee
all utility charges for said structure, including,
charges for water, sewer, sanitation, gas and
For each such.building, Lessee agrees to obtain and keep in
force throughout the term of this lease fire and extended
coverage insurance in an amount approved by Lessor. If any such
structure shall be damaged or destroyed by fire or other casualty,
such structure shall be repaired or reconstructed with due
diligence by Lessee at its own cost and expense, and the rent
payable hereunder with respect to the premises on which such
structure is located shall be proportionately paid up to the
time of such damage or destruction and shall thenceforth cease
until such time as the building shall be fully restored; provided,
in the event such building is not fully restored within 120
days from the date of damage or destruction, the rent shall
resume on said 121st day,
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16. DAMAGE OR DESTRUCTION OF por"ISFS: If .tet;• bui i::S
of Les:;or in •which Lea:ec occupies exclusive space 'ncreunucr.
ocher than buildings erected by Lessee on premise: leased as a
result of Lessee exercising the option granted it by Section 11
hereof, is damaged or destroyed by fire or other casualty, such
building shall be repaired or reconstructed with due diligence
by Lessor at its own cost and expense, and the rent payable
hereunder with respect to Lesssee's exclusive space in such
building shall be proportionately paid up to the time of such
damage or destruction and shall thenceforth cease until such time
as the building shall be fully restored; provided, however, that
Lessee may, at its option, cancel so much of this agreement as
relates to the untenantable building, such cancellation to be
effective as of the date the building was damaged or destroyed.
17. INDEM':IFICATION OF LESSOR: Lessee agrees to indemnify
Lessor against all liability for injuries co persons or damage
. to property caused by Lessee
the leased premises, and any
Lessee as a result of Lessee
's negligent use or occupancy of
additional premises leased by
's exercising the option
by Section 11 hereof, provided, however, that Lessee
liable for any injury, damage, or loss occasioned by
granted it
shall not be
the negligence
of Lessor or its agents or employees, and provided further that
Lessor shall give to Lessee prompt and timely notice of any claim
made or suit instituted which in any way directly or indirectly,
contingently or otherwise, affects or might affect Lessee, and
Lessee shall have the right to compromise and defend the same to
the extent of its own interest.
Lessee agrees to obtain and keep in force throughout the
term of this lease liability insurance with limits not less than
$300,000.00 for any one injury, and $1,000,000.00 for any one
accident, and $300,000.00 for damage to property. Lessee shall,
at Lessor's request, furnish current certificates of fire and
extended coverage insurance.
18. TER2:1NATION 1111 LESSEE: If Lessor fails to perform
any act or acts or render any service required Co be performed or
rendered by Lessor under the terms of this agreement, and if
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Lessor fails co remedy an^ such default in a taanncr reasonably
satisfactory to Lessee, within thirty (30) d:rn;'Ecllowin;;
receipt from Lessee of written notice to remedy same, Lessee
may elect to terminate this: agreement by giving thirty (30)
days written notice to Lessor. Lessee shall also have the
right to terminate this agreement in the event of any of the
following:
The failure or refusal of the Civil Aeronautics
Board or.other authority to continue to grant Lessee
the right to operate into and from the Airport; the
termination of Lessee's obligation or right (imposed
by contract or otherwise) to the Federal Government
for the carriage. of United States airmail to, from
or through the Fayetteville area or its environs, for
the receiving and dispatching of United States airmail;
authorization by the Civil Aeronautics Board or other
authority of another airport for service by Lessee to
Fayetteville; issuance by any court of competent
jurisdiction of any injunction in any way preventing or
restraining the use of the Airport or any part thereof
for airport purposes, and the remaining in force of
such injunction for a period of at least thirty (30)
days; any action of the Civil Aeronautics Board or other
authority refusing to permit Lessee to operate into, from
or through the Airport such aircraft as Lessee may
reasonably desire to operate thereon; the inability
of Lessee to use said premises and facilities continuing
for a longer period than thirty (30) days due to any
deficiency of the Airport or unsafe condition for opera-
ting at the Airport of the type of aircraft then being
flown by Lessor or any law, order, rule or regulation
of any appropriate governmental authority having juris-
diction over the operations of Lessee or due to war,
or other casualty; the assumption by the United States
Government or any authorized agency thereof of control
of said airport and facilities or any substantial part
or parts thereof; the erection of any obstacle on or
in the vicinity of the Airport which would occasion a -
modification of Lessee's air carrier operating certificate
or similar authorization establishing minumum safety
standards for the operation of Lessee.
No waiver of default by Lessee of any of the terms, covenants or
conditions hereof to be performed, kept and observed by Lessor
shall be construed to be or act as a waiver by Lessee of any
subsequent default of any of the terms, covenants and conditions
herein contained to be perforated, kept and observed by Lessor.
19. TEP39INATION BY LESSOR: If Lessee fails to make any
payment due hereunder within ten (10) days after receipt of
notice from Lessor of such delinquency, 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
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payments of
duo :ui,: unpaid. Lessor :hal. aln,
have the right to terminate this agreement in the event
of am• of the following:
The filing by Ldssec of a voluntary petition
in bankrupccv: the adjudication ol.' Lessee as a
bankrupt pursuant to such proceedings; the appoint-
ment of a receiver of Lessee's assets; the divesti-
ture of Lessee's estate herein by other operation::
of law; the abandonment by Lessee of its conduct of
air transportation at the airport; the default by
Lessee in the performance of any covenant or agree-
ment herein required to be performed by Lessee and
the failure of Lessee to remedy such default for a
period of thirty (30) days after receipt from Lessor
of written notice to remedy the same.
No waiver of default by Lessor of any of the terms or conditions
hereof to
construed
of any of
be performed, kept and observed by Lessee, shall be
to be or act as a waiver of any subsequent default
the terms and conditions herein contained to be
performed, kept and observed by Lessee.
20. SURREEDER Or POSSESSION: On the expiration or other
termination of this lease, Lessee's right to use of the premises,
facilities, and services described herein shall cease, and Leasee
shall vacate the premises without unreasonable delay.
Except as otherwise provided in this agreement, all buildings,
structures, fixtures, hangars, improvements, equipment, and
- other property brought, installed, elected, -or placed•by Lessee
in, on, or about the airport, and premises leased thereunder,
including, but not limited to, storage tanks, pipes, pumps,
wires, poles, machinery, and air conditioning equipment shall
be deemed to be personalty and remain the property of Lessee.
Lessee shall have the right at any time during the term of
this agreement, or any renewal or extension hereof, 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 vest in Lessor.
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ire nrertises
now or hereafter leased to Luau• at any rcasc:a,b Lc
Lima for any.purpose necessary or incidencaL to *the ncrror-.ince
of its ab Liga tiun:: hereunder.
22. CONPORMCTY OF AGRE EVENT: In the event Lessor shall
enter into an agreement with any other nit transport_ operator
with respect to the airport, which agreement contains marc
favorable terms than this agreement, or in the event Lessor
grants any other air transport operator rights or privileges
with respect thereto which arc not accorded to Lessee hereunder,
then the same rights, privileges, and more favorable ter...s
shall be concurrently and automatically made available to
Lessee.
• 23. ASSIGNMENT AND SUBLETTING: Lessee shall not at any
time assign its rights under this agreement or any part hereof,
without the written consent of Lessor; provided, however, that
the foregoing shall not prevent the assignment of such rights
to any corporation with which Lessee may merge or consolidate,
or which may succeed to the business of Lessee, or to the
United States Government or any agency thereof. No such subletting
shall release Lessee from its obligations to pay any and all of
the rentals and charges set•forth herein.
24. NOTICES: Notices to Lessor provided for 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 for herein shall
be sufficient if sent by registered mail, addressed to
P. 0. Box 1344, Fayetteville, Arkansas 72701.
25. 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, chat the invalidity of any such covenant, condition or
provision does not materially prejudice either the Lessor or
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the Lessee in their respective _ .;hes and obl i;:ac'. on
contained in chc valid covenant, condition, or provisions
of Lb is a,r,rcer„cnC.
26. USE AND v IOCMENT OG LEASED PRE:ItSE9: Lessor
represents that it has the right: Co lease the airport,
together with the facilities, rights, licenses and privileges
herein granted, and has full power and authority to enter into
this agreement in respect thereof. Lessor agrees that, on
payment of the rent, performance of the covenants and agree-
ments by Lessee, Lessee shall peaceably have and enjoy the
leased premises and all rights and privileges of the airport,
ics appurtenances and facilities.
27. GRANT OF OPER-1TIONAL RIGHTS: During the term of this
agreement, and during any renewal or extension thereof, Lessee shall
have
the right to:
A. Take off, land, fly, taxi, tow, park, load, and
unload its aircraft and other equipment used in the
operation of all scheduled and nonscheduled flights.
B . Load and unload persons, cargo, property, and
mail by means of such equipment as Lessee may
choose or require in the operation of its business,
with -the additional right to designate and enter into
agreement with any carrier or carriers of its choice
for the transportation to and from the airport of
passengers and their baggage, cargo, property, and
mail carried and to be carried by Lessee;
C. Repair, maintain, condition, service, test,
parker store aircraft or ocher equipment, provided
that such right shall not be construed as authorizing
the conduct of a separate business by Lessee;
D . Install, maintain and operate without cost to
Lessor a message tube system and other communica-
tions systems between suitable locations in the
aircraft loading areas and suitable locations in
those areas of the terminal buildingleasedex-
clusively to Lessee.
E . Install, maintain, and operate at Lessee's expense,
or in conjunction with other air transportation
companies, such radio communications, meteorological, and
aerial navigation equipment at facilities in or on
premises leased exclusively to Lessee or, subject co
the approval of Lessor's City Manager; elsewhere on
the airport, as may be necessary or convenient in the
opinion of Lessee for its operation; provided, however,
that such approval shall not be withheld unless such
installation, maintenance, and operation at the location
so elected by Lessee shall interfere with the reasonable
use of the airport by others authorized to do so; and
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F. Conduct any ocher ojcr:It lon orActivity 1.,. ti ..
reasonab L: necessary to She conduct b;: Lessee of i.ss
bus iso s:;.
IN WITNESS WH::".EOF, the C of Fayetteville, Arkansas.
executed these pre:tellC:: by Lts Mayor, and ha: caused Lite Seal of
the City of Favccecville, Arkansas, to be hereunder affixed,
and said Lessee has caused chose present:; to be signed,
corporate seal Co be hereunto affixed, and attested, by
its
its
proper officers, being fully authorized to do, as of the date
and year above. written.
ATTEST:
CITY OF FAYETTEVILLE, ARKANSAS
BY
tipFi,.fra', —se.• .
SCHEDULED'SKYWAYS, INC.
BY: r
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TITLE: rCesiotl�;
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E3HIBIT "B"
For Airport Agreement between Scheduled Skyways, Inc. (Lessee) and the,
City of Fayetteville, Arkansas (Lessor) for the term of
19, through , 19
LAUDC;ci 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 filed with the
Civil Aeronautics Board and in effect on the, first day•of such calendar
month, computed as follows:
23 cents per 1,000 pounds (mclw) per month beginning an the date of
new terminal occupancy by lessee ` ...
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, the weight of which is to 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
minimum fee for any scheduled landing shall be $2.50.
The term "maxinwm 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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