HomeMy WebLinkAbout67-87 RESOLUTIONRESOLUTION NO.
67-87
A RESOLUTION AUTHORIZING THE MAYOR AND CITY
CLERK TO EXECUTE A LEASE AGREEMENT WITH AERO -
TECH, INC. FOR A MAINTENANCE HANGAR AT THE
FAYETTEVILLE MUNICIPAL AIRPORT.
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 agreement with Aero -Tech, Inc. for a
maintenance agreement at the Fayetteville Municipal Airport. A;,
copy of the lease agreement authorized for execution hereby is
attached hereto marked Exhibit "A" and made a part hereof.
PASSED AND APPROVED this 15th day of September , 1987.
APPROVED
By:
Mayes
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This LEASE
19 664 , between
LEASE AGREEMENT
AGREEMENT made this 2$1 L'day of
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 the
Fayetteville Municipal Airport (Drake Field), herein referred to
as the "Airport"; and
WHEREAS, Lessor has constructed an aircraft hangar
Airport; and
WHEREAS, Lessee desires to lease said aircraft hangar.
NOW,
covenants
1.
aircraft
attached
2.
at the
THEREFORE, the parties in consideration of the mutual
contained herein, hereby agree as follows:
Lessor leases to Lessee, and Lessee leases from Lessor,
hangar at Lessor's Airport as reflected on Exhibit
hereto and made a part hereof.
Lessee is granted the use, in common with other similar -
„p n
ly authorized, of the
equipment, improvements,
hereafter be provided at
Airport, together with all facilities,
and services which have been or may
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, passen-
gers, guests, and other invitees. Such rights shall also extend
to persons or organizations supplying materials or furnishing
services to Lessee.
4. Subject to earlier termination as hereinafter provided,
the
initial term of this
commencing on the
ending on the
1st
29th day
agreement shall be for one (1) year
day of
of
March , 19 87 , and
February
, 198s If during
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the term of this agreement, Lessor issues bonds to finance the
demised premises, 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:
Monthly rent =
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
Lessor
entire
shall reimburse Lessor for the premium paid by
for fire and extended insurance coverage on the
executive hangar.
5. During the initial term of this lease, Lessee agrees to
pay Lessor for the use of the demised premises, facilities,
rights, and privileges granted hereunder the sum of $ 174 17
plus 2% of gross sales per month. The term "Gross Sales" shall
include, but shall not be limited to, sundry sales,
lubricants, aircraft
airframe and accessory
flight training, and
charter and
sales and
specialized
"gross sales" shall not include the
taxi service,
maintenance,
aircraft
aircraft
oil and
engine,
rental,
services; provided, the term
sale of new and used aircraft.
Said sum of $ 1674.17 shall be payable in advance on or before
the loth day of each month. The 2% of gross sales will be payable
in arrears on or before the 20 th 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
the Airport premises as is not
individual lessees.
and keep in good repair so much of
under the exclusive control of
7. Lessee shall provide for and supply at its expense all
janitor service with respect to the demised premises, and shall
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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 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 Minimum Standards for Commercial
Aeronautical Activities at Drake Field which are incorporated
herein 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 cancella
tion 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 toinsure 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
$ 2,000,000.00 .
Lessee shall file with Lessor's airport manager certificates
of insurance evidencing the insurance coverage required hereby.
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 neces-
sary 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
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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 the 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 of Lessee's obligations hereunder.
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
113 W Mountain
Fayetteville, Arkansas 72701
Aero -Tech Services, Inc.
P. 0. Box 1266
Fayetteville, AR 72702
Telephone: 443-4343
21. This agreement shall be construed under the laws of the
State of Arkansas.
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22. 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
By:
Clerk
ATTEST
By:
Title:
CITY OF FAYETTEVILLE, ARKANSAS
LESSOR
By: U 4& yor c11 J A1U�a ewJ
M yor d v
AERO -TECH SERVICES., INC.
LESSEE