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HomeMy WebLinkAbout137-84 RESOLUTIONRFBOLLnICH M. 137-84 SCAN`N ED_r A RESOLUTION AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A LEASE WITH AERO -TECH SERVICES, INC. FOR HANGAR SPACE AT DRAKE FIELD. BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF FAYEIIEVILIE, ARKANSAS: Section 1. That the Mayor and City Clerk are hereby authorized and directed to execute a lease with Aero -Tech Services, Inc. for hangar space at Drake Field. A copy of the lease authorized for execution hereby is attached hereto marked Exhibit "A" and made a part hereof. PASSED AND APPROVED this 20 • TEST.. t .. t' 0 t ; y • • day of November , 1984. APPROVED By. 67 4 C 7770 MODIFICATION OF LEASE AGREEMENT This AGREEMENT made this /O day of Cem�l�7-L� , 19804 0, by and between the City of Fayetteville, Arkansas, hereinafter called "Lessor" and Aero -Tech Services, Inc., hereinafter called the "Lessee". MICROFILMED WHEREAS, the City and Aero -Tech Services, Inc., entered into a lease agreement dated November 20, 1984, which is incorporated herein by reference thereto; and WHEREAS, the parties desire to nwdify the aforesaid lease agreement. NOW, THEREFCRE, THE PARTIES MUIVAILY AGREE AS FOIIAFS: 1. Paragraph 5 of said lease agreement is modified to provide that the consideration payable to the City which is due on or before the 10th day of each month shall hereafter become due on or before the 20th day of each month. 2. All provisions of the lease are incorporated herein and are hereby modified 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. ATTEST ATTEST By: Title: CITY OF FAYETTEVILLE, ARKANSAS By:��rshe.e Mayor AERO -TECH SERVICE INC. By: Title: • LEASE AGREEMENT LEASE AGREEMENT made this 2 0th day of November , 198 4, between the City of Fayetteville, Arkansas, hereinafter called "Lessor", and Aero -Tech Services, Inc., hereinafter called "Lessee". WHEREAS, Lessor is the owner of an airport known as Drake Field, herein referred to as "the Airport"; and WHEREAS, Lessor has constructed an aircraft hangar at the Airport and WHEREAS, Lessee desires to lease said aircraft hangar. NOW, THEREFORE, the parties in consideration of the mutual covenants contained herein, hereby agree as follows: 1. Lessor leases to Lessee, and Lessee leases from Lessor, aircraft hangar at Lessor's Airport as reflected on Exhibit "A" attached hereto and made a part hereof. 2. Lessee is granted the use, in comumon,with other 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 frau time to time including, but not limited to, the landing field and any extensions thereof or additions thereto, roadways, runways, aprons, taxiways, flood lights, landing lights, beacons, control tower, signals, radio aids, and all other conveniences for flying, landings, and takeoffs. 3. Lessee shall have at all time the full and free right in ingress to and egress from the demised premises and facilities referred to herein for Lessee, its employees, customers, passengers, guests, and other invitees. Such rights shall also extend to persons or organi- zations supplying materials or furnishing services to Lessee. 4. Subject to earlier termination as hereinafter provided, the initial term of this agreement shall be for two (2) years commencing on the 1st day of March, 1985, and ending on the 28th day of February, 1987. Lessor hereby grants Lessee three options to renew this lease, subject to the following terms and conditions. (a) the term of each option period shall be equal and the total length of the three options shall equal the amortization period of the bonds to be issued by Lessor to finance construction of the aforesaid hangar; -2- (b) the monthly rent during each option period shall be determined Monthly rent = pay in accordance with the following formula: Total Debt Service on Bonds for Option Period Number of Months in Option Period + 2% of gross sales per month (excluding fuel sales and aircraft sales) (c) Lessee must exercise any option by giving Lessor written notice at least ninety (90) days prior to expiration of the existing term. (d) Lessee shall be responsible for proper maintenance of the demised premises; (e) Lessee shall reimburse Lessor for the premium paid by Lessor for fire and extended insurance coverage on the entire executive hangar. 5. During the initial term of this lease, Lessee agrees to Lessor for the use of the demised premises, facilities, rights, and privileges granted hereunder the sum of $1,616.00 plus 2% of gross sales per month. 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, and specialized services; provided, the term "gross sales" shall not include the sale of new and used aircraft. Said sum of $1,616.00 shall be payable in advance on or before the 10th day of each month. The 2% of gross sales will be payable in arrears on or before the 10th day of the following month. In the event of late payment, a ten per cent (10%) penalty compounded monthly, shall be due and payable immediately. 6. Lessor shall maintain and keep in good repair so much of the Airport premises as is not under the exclusive control of individual lessees. 7. Lessee shall privide for and supply at its expense all janitor service with respect to the demised premises, and shall pay for all utilities serving the demised premises, including, but not limited to heat, light, gas, electricity, and water. 8. Lessee agrees to observe and obey Lessor's ordinances and regulations with respect to use of the demised premises and Airport; provided, however, such rules and regulations shall be consistent • -3- with safety and with rules, regulations and orders of the Federal Aviation Administration with respect to aircraft operations at the Airport. 9. Lessor authorizes Lessee to use the premises for Aircraft Engine, Airframe and Accessory Sales and Maintenance, Aircraft Rental and Sales, and Flight Training which operations shall be subject to Lessor's tMinimum Standards for Commercial Aeronautical Activities at Drake Field which are incorporatedherein by reference thereto and made a part hereof as if set out word for word. No other vehicles, equipment or supplies shall be stored on the premises unless expressly agreed to by Lessor. Lessee further agrees not to store any flammable material on the premises or in any way endanger or violate the provisions of Lessor's property damage insurance policy or the requirement of same. Such violations shall constitute a material breach of this agreement. 10. If the demised premises are partially damaged by fire or other casualty, said premises shall be repaired with due diligence by Lessor at Lessor's expense. If the damage is so extensive as to render such building untenable, the rent payable hereunder shall be proportionally paid up to the time of such damage and shall thenceforth cease until such time as the premises shall be fully restored. If the demised premises are completely destroyed, Lessor may reconstruct the hangar at Lessor's own cost and the rent payable hereunder shall be adjusted as set forth above, or Lessor may, at its option, cancel this agreement, such cancellation to be effective as of the date the hangar was destroyed, and the rent adjusted as set forth above. 11. Lessee shall procure and maintain in force during the term of this agreement fire and extended coverage insurance on Lessee's aircraft in the amount equivalent to the replacement cost thereof. Lessor shall procure and maintain in force during the term of this agreement fire and extended coverage on the aircraft hangar in an amount equivalent to the replacement cost thereof. Lessee shall also be required to insure any contents within the aircraft hangar. During the term of this agreement Lessee shall at all times maintain general public liability insurance in the amount of $ Lessee shall file with Lessor's airport manager certificates of insurance evidencing the insurance coverage required hereby. • -4- 12. Lessee agrees to indemnify Lessor against any liability for injuries to persons or damage to property caused by Lessee's negligent use or occupancy of the leased premises; provided, however, that Lessee shall not be liable for any injury, damage or loss occasioned by 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 affects or might affect Lessee, and Lessee shall have the right to compromise and defend the same to the extent of its own interest. This paragraph shall not be construed as a waiver by Lessor of Lessor's statutory tort immunity. 13. 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 amount due and unpaid. Lessor shall also have the right to terminate this agreement in the event Lessee breaches any other term of this agreement. Lessee shall be entitled to seven (7) days written notice of termination. 14. On the expiration or other termination of this lease, Lessee's right to use the demised premises shall cease, and Lessee shall vacate the premises without unreasonable delay. All property installed, erected, or placed by Lessee in, on, or about the premises leased hereunder shall be deemed to be personal and shall 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, and for an additional period of seven (7) days after the expiration or other termination of this agreement, to remove any or all of such property, 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 aforesaid seven (7) days period shall thereupon become a part of the land on which it is located and and title thereto shall thereupon vest in Lessor. 15. Lessor may enter the premises leased to Lessee at any reasonable time for any purpose necessary or incidental to the performance of its obligations or Lessee's obligations hereunder. • -5- 16. Lessee shall maintain the demised premises in a clean and orderly fashion at all times. 17.. Lessee shall not store any flammable materials on the demised premises or in any way violate the provisions of Lessor's insurance policy on the aircraft hangar or the requirements of said policy. 18. Lessee shall not start or operate aircraft engines within the aircraft hangar leased hereby and shall not allow such operation by any other person. 19. Lessee shall not at any time assign this lease or sublet the demised premises without the prior written consent of Lessor. 20. Any notice or consent required by this agreement shall be sufficient if sent by certified mail, return receipt requested, postage prepaid, to the following address: Lessor: Lessee: City of Fayetteville C/O Airport Manager Postal Drawer F Fayetteville, AR 72702 AERO -TECH Services, Inc. 21. This agreement shall be construed under the laws of the State of Arkansas. 22. All the covenants, conditions, and provisions under this agrecment shall extend to and bind the legal representatives, successors, and assigns of the respective parties hereof. • • 4•4 ,c; ATTEST:. Clerk ATTEST: By: Secretary CITY OF FAYEPIEVILLE, ARKANSAS, LESSOR By410-2797.0.40^C7- Mayor 7.0.aMayor AERO -TECH SERVI ES, INC. LES BY By: SEE Age/ ',A / •.-.ident f //!1Sl 4 Lis/ lice P :1 LEASE GUARANTY AGREEMENT This LEASE GUARANTY AGREEMENT made and entered into as of November 20, 1984, (the "Guaranty"), by and between Aero -Tech Services, Inc., (the "Lessee"), and Mark Courdin and Barry J. Sinex (the "Guarantors") with the City of Fayetteville, Arkansas (the "Lessor"). WHEREAS, Lessor and Lessee have entered into a lease agreement for an aircraft hangar dated November 20, 1984, which agreement is incorporated herein by reference thereto; and WHEREAS, Guarantors are corporate officers of Lessee; and WHEREAS, to induce Lessor to execute said lease agreement the Guarantors offered to enter into this Guaranty. NOW, THEREFORE, in consideration of the premises and as an inducement for Lessor to execute the aforesaid lease agreement, the Guarantors do hereby, subject to the terms hereof, covenant and agree with the Lessor as follows: 1. Lessee and the Guarantors hereby jointly and severally guarantee to Lessor the full and prompt payment of all lease payments due by Lessee under the aforesaid lease agreement. All payments by Lessee and the Guarantors shall be paid in lawful money of the United States of America. Each and every default in payment of any lease payment shall give rise to a separate cause of action hereunder, and separate suits may be brought hereunder as each cause of action arises. 2. The obligations of the Lessee and the Guarantors under this Guaranty shall be unconditional and absolute and shall remain in full force and effect until all lease payments under the aforesaid lease have been paid in full. Such obligations shall not be affected, modified, or impaired upon the happening frau time to time of any event. 3. The Lessee and the Guarantors agree to pay all costs, expenses and fees, including all reasonable attorney's fees, which may be incurred by Lessor in enforcing or attempting to enforce this Guaranty following any default on the part of the Lessee or the Guarantors hereunder, whether the same shall be enforced by suit or otherwise. 4. Any notice, process, pleadings or other papers served upon the agents or officers of the Lessee and upon the Guarantors shall be sent by registered or certified mail to the regular mailing address -2 - of the Lessee and the Guarantors or to such other address as may be furnished by the Lessee or the Guarantors to the Lessor in writing. 5. No delay or omission to exercise any right or power accruing upon any default, omission or failure of performance hereunder shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time as often as may be deemed expedient. In order to entitle Lessor to exercise any remedy reserved to it in this Guaranty, it shall not be necessary to give any notice, other than such notice as .may be herein expressly required. In the event any provision contained in this Guaranty shall be breached by the Lessee or the Guarantors, and thereafter duly waived by Lessor, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any .�- other breach hereunder. No waiver, amendment, release or modification of this Guaranty shall be established by conduct, custom or course of dealing, but solely by an instrument in writing duly executed by Lessor. " IN WITNESS WHEREOF, the Lessee and the Guarantors have caused this Guaranty to be executed as of the date first above written. ArrLST: By: Title: AERO -TECH SEVICES, INC. By: Title: