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HomeMy WebLinkAbout89-86 RESOLUTION1. i RESOLUTION NO. 89-86 A RESOLUTION AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A ONE YEAR LEASE WITH CONTINENTAL OZARK, INC. FOR AIRPORT HANGAR SPACE AT A RENTAL OF $620 PER MONTH. BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF FAYE TEVILLE, ARKANSAS: That the Mayor and City Clerk are hereby authorized and directed to execute a one year lease with Continental Ozark, Inc. for airport hangar space at a rental of $620.00 per month. A copy of the lease authorized for execution hereby is attached hereto marked Exhibit "A" and made a part hereof. PASSED AND APPROVED this 2nd day of September 1r By: L i Y Mayor , 1986. • LEASE AGREEMENT LEASE AGREEMENT made this /IF- day of - °u,,, 1984, between the City of Fayetteville, Arkansas, hereinafter called "Lessor", and Continental Ozark, 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 space within 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, the north one-half of the executive 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 common 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 from 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 take- offs. 3. Lessee shall have at all times 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 organizations supplying materials or furnishing services to Lessee. -2- 4. Subject to earlier termination as hereinafter provided, the initial term of this agreement shall be for one (1) year commencing on the 1st day of 1st day of September, 1986, and ending on the 31st day of -August, 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; (b) the monthly rent during each option period shall be determined in accordance with the following formula: 11 X Total Debt Service on Bonds for Monthly rent -Option Period Number "Months in Option Period (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 main- tenance of the demised premises; (e) Lessee shall reimburse Lessor for one-half of the premium paid by Lessor for fire and extended insurance coverage on the entire executive hangar. 5. Lessee agrees to pay Lessor for the use of the demised premises, facilities, rights, and privileges granted hereunder the sum of $620.00 per month. Said sum shall be payable in advance on or before the 1st day of each month. 6. Lessor shall maintain and keep in good repair so much -of the Airport premises as- i -s not .under. the exclusive control of individual lessees. 7. Lessee shall providefor and supply at its expense all janitor service with respect to the demised premises, and shall pay for all utilities serving the demised premises, • sd -3- .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 with safety and with rules, regulations and orders of the Federal Aviation Administration with respect to aircraft operations at the Airport. 9. Lessee agrees that it shall use the premises only for the storage of airplanes and materials and equipment necessarily related to the operation of said airplanes and that no other vehicles, equipment or supplies shall be stored on the premises unless expressly agreed to by Lessor; provided, when Lessee's airplane is on a flight, automobiles utilized by the pilot and passengers may be stored on the premises. 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. Lessee further agrees that it shall only be permitted to engage in minor maintenance on the airplane stored in the building and shall not engage in any major overhaul of the airplane within the leased premises. 11. 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 ceaseuntil 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 can-. cellation to be effective as of the date the hangar was destroyed, and the rent adjusted as set forth. above. 12. Lessee shall procure and maintain in force during the term of this agreement fire and extended coverage insurance on Lessee's aircraft in an 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. 13. 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 t� 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. . 14. 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. 15. 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 unreason- able delay.. All property installed, erected, or placed by Lessee in, on. or about the premises leased hereunder shall be deemed to be personalty 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, t� 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) day period shall thereupon become a part of the land on which it is located and title thereto shall thereupon vest in Lessor. 16. 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. • 17. Lessee shall maintain the demised premises in a clean and orderly fashion at all times. 18. 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. 19. Lessee shall not start or operate_ aircraft engines within the aircraft hangar leased hereby and shall not allow such operation by any other person. 20. Lessee shall not at any time assign this lease or sublet the demised premises without the prior written consent of Lessor. 21. Any notice or consent required by this agreement shall be sufficient if sent by certified mail, return receipt requested, postage prepaid, Lessor: Airport Manager's Office City of Fayetteville 113 West Mountain Street Fayetteville, AR 72701 to the following address: Lessee: Continental Ozark, Inc. c/o Mr. E G. Bradberry Post Office box 1503 Fayetteville. AR 72701 22. This agreement shall be construed under the laws of the State of Arkansas. 23. All the covenants, conditions. and provisions under this agreement shall extend to and bind the legal representatives, successors, and assigns of the respective parties hereof. • ATTEST: CITY OF FAYETTEVILLE. ARKANSAS, LESSOR By:(.3'l/ _ - Mayor ATTEST: By: CONTINENTAL OZARK, INC.. LESSEE By: