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HomeMy WebLinkAbout21-85 RESOLUTIONr, RESOLUTION NO, 21-85 SCANNED A RESOLUTION AUTHORIZING THE MAYOR AND CITY rrFRK TO EXECUTE A FUEL FARM LEASE AGREEMENT WITH AIR MIDWEST 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 a fuel farm lease with Air Midwest Skyways, Inc. A copy of the lease authorized for execution hereby is attached hereto marked Exhibit "A" and made a part hereof. PASSED AND APPROVED this 5th day of "• APPS:/ March 11985. Mayor t • LEASE THIS LEASE, .executed on this lst day of . March , 1985, between the City of Fayetteville, Arkansas, a municipal corporation, hereinafter called "Lessor", and Air Midwest Skyways, Inc., a Kansas 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 proper authorization of the Federal Aviation Administration, the Arkansas Transportation Commission and the Civil Aeronautics Hoard; 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 exclusive use of the space now occupied by Lessee's fuel farm designated on Exhibit "A" attached hereto. 2. Authorization. Lessor authorizes Lessee to use the foregoing facilities in connection with its scheduled flight operations. Lessee shall not use its fuel fano to sell or furnish fuel to any other person or business at the airport. 3. Term. Subject to earlier termination, as hereinafter provided, the tens of this agreement shall be for a period on one (1) year commencing on March 1, 1985, and ending on February 28, 1986. In the event Lessee relocates Lessee's fuel farm, Lessee's right to use the premises described in Paragraph 1 shall terminate immediately and Lessee's obligation to pay rent under Paragraph 4 shall likewise terminate. 4. Rentals and Charges. Lessee shall pay to Lessor the sum of $440.00 per month, payable in advance on or before the 10th • • • it • day of the month. The first such payment shall be due on or before March 10, 1985. In the event of late payment, a ten percent (10%) penalty, compounded monthly, shall be due and payable immediately. 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. 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. 7. Insurance. Lessee agrees to add Lessor as an insured under Lessee's existing General Public Liability Insurance Policy to maintain said policy in force throughout the term of this lease. Lessee 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. 8. 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. 9. This agreement shall inure to the benefit of and be binding upon the successors, assigns and legal representatives of the parties. IN WITNESS WIERE F, the parties hereto have executed this Agreement on the year and date first above written. ATTEST 1 • ATTEST CITY OF FAYETTEVILLE, ARKANSAS Mayor AIR MIDWEST SKYWAYS, INC. Title: R% C4i'e D�er��iu� Q5.cev