HomeMy WebLinkAbout100-89 RESOLUTIONer
RESOLUTION NO.
100-89
A RESOLUTION AUTHORIZING A LEASE AGREEMENT
BETWEEN AERO -TECH SERVICES, INC. AND THE CITY
OF FAYETTEVILLE, ARKANSAS.
' BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF
FAYETTEVILLE, ARKANSAS: • ' •F-+
i F
,. . 3 4 4 ,
Section 1[ That the Mayor and "City Clerk 4 -are hereby
authorized and directed to execute a Lease Agreement between Aero -
Tech Services, Inc. and the City- of Fayetteville, Arkansas for
airport hangar rental of $2,300.00•per month for a•five (5) year
period with the stipulation that said lease shall be mutually co -
terminating with+`the Fixed. Base Operator's and -Fuel Farm•Lease
between the parties.= 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 17th day of October , 1989.
„ATTEST:
APPROVED:
BY: Ct� /!/. /
Mayor
LEASE AGREEMENT
This AGREEMENT made this 1.7 day of lu e g€
1989, between the City of Fayetteville, Arkansas., hereinafter.
called the "Lessor" and Aero -Tech Services; Inc., hereinafter
called the "Lessee".
WHEREAS, the 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 at the
Airport; and
WHEREAS,. Lessee desires to lease said aircraft hanger.
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 aircraft hangar at 'Lessor's Airport reflected on Exhibit "A"
attached hereto and made a part hereof.
2.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
andany 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. At all times, Lessee; its employees, customers,
passengers,. guests, and other invitees shall have the full and
free right of ingress to and egress from the demised premises and
facilities referredto herein for Lessee. Such rights shall also
extend to persons ororganizations supplying materials or
furnishing services to Lessee.
4. Subject to earlier termination as hereinafter provided,
the initial term of this:agreement shall be for five (5) years
commencing on the 1st day of. November; 1989 and ending -on the 31st
day.of October., 1994.
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171
5-. During the initial year of this lease, Lessee agrees to.
pay'Lessor for the use of the demised premises, facilities,
rights; and privileges granted hereunder the
month payHi-n advance. In the event of late
percent penalty, compounded monthly, shall. be
sum of $2,3.00:00 per
payment,- a ten (10)
due and -payable.
The consideration payable to Lessor for each succeeding year
during the term of this lease shall be the -amount resulting by
adjusting the basic consideration payable under Paragraph 5 above
to reflect the percentage of change (either up- or down) occurring -
in the consumer price index, U.S. Bureau of Labor Statistics,
Department of Labor, through comparing the index on March 1 of the
current year with the index on March 1 of the immediately
preceding year.
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 provide for and supply at its expense all
janitorial 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 ordinances and regulations shall
be consistent 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 premisesforaircraft
engine, airframe and accessory sales .and maintenance. igo 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 and not to violate
the provisions of Lessor's property damage insurance policy. Any
such violations shall constitute a material breach. of this
10. Lessee 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
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 cease until .such time as the premises shall be
fully restored. If thedemised premises are completely destroyed,
Lessor may reconstruct the .hangar at Lessor's own cost and the
rent payable hereunder shall be 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.
12. 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
$2,000,000.00. Lesseeshall, file with Lessor's airport manager
certificates of insurance evidencing the insurance coverage
required hereby.
13. Lessee agrees to indemnify Lessor against any liability
for injuries or death to persons or damage to property caused by,
Lessee's negligent use or .occupancy of the demised 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
n
might affect Lessee., and Lessee shall have..thetight to compromise
and defend the. same to the extent of its own interest. This
paragraph shall not be construed as a waiver by Lessor or Lessor's
statutory tort immunity.
14. If Lessee fails t� 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. The parties.acknowledge the existence of a certain lease
and fixed base operator's contract between them, dated January 22,
1985, with modifications, hereinafter referred to as the "FRO
Contract". Lessee agrees that if the FB0 contract is terminated,
for any reason, that this lease agreement shall terminate
effective the date of that agreement. --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 premises leased hereunder shall be deemed
to be personal property 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 theexpiration or other
termination of this agreement, to remove any or all such property,
subject, however to Lessee's obligation to repair all damage, if
any, resulting fromsuch 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 the title thereto shall thereupon vest in the
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•.obligation of Lessee's obligations hereunder.
17. Lessee shall maintain the demised premises in a clean
and orderly fashion at all times.
18. Lessee shall not start or operate aircraft engines
within the aircraft hangar leased hereby. and shall net 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 required,
postage prepaid, to the following address:
Lessor:
Lessee:
City of Fayetteville
c/o Airport Manager
113. W. Mountain
Fayetteville, AR 72701
Aero -Tech Services, Inc..
P.O. Bok 1266
Fayetteville, AR 72701
Telephone: 443-4343
21. This agreement shall be construed under the laws of the
State of Arkansas.
22 All the covenants, conditions,and provisions under this
agreement shallektend to and bind the legal representatives,.
successors, and assigns of the respective parties hereof.
IN WITNESS WHEREOF, the parties have executed this Lease on
the day and year first above written.
ATTEST:
CITY OF FAYETTEVILLE;. A KANSAS
By:[�(22/..
Mayor
AERO -TECH SERVICES, INC.
LEASE AGREEMENT
This AGREEMENT made this /7'4 day of
i
1989, between .the City of Fayetteville, Arkansas, hereinafter
called the "Lessor" and 'Aero -Tech Services, Inc.., hereinafter
called the "Lessee".
WHEREAS, the 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 at the
Airport; and
WHEREAS, Lessee desires to lease said aircraft hanger.
NOW, THEREFORE, the parties in consideration of the mutual
covenants contained heiein, hereby agree as follows:
1. Lessor leases to Lessee, and Lessee leases from Lessor,
the aircraft hangar at Lessor's Airport reflected on Exhibit "A"
attached hereto and made a part hereof.
2. 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, 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. At all times, Lessee, its employees,customers,
passengers, guests, and other invitees shall havethe full and
free rightof ingress to and egress from the demised premises and
facilities referred to herein for Lessee. 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 agreement shall be for five (5) years
commencing on the 1st day of November, 1989 and ending on the 31st
day. of October, 199A.
5. During the initial year of this lease, Lessee agrees to
pay Lessor for the use of the demised premises, facilities,
rights, and privileges granted.hereunder the sum of $2,300.00 per
month pay in advance. In the event of late payment, a ten (10)
percent penalty, compounded monthly, shall. be due and payable.
The consideration payable to lessor for each succeeding year
during the term of this lease shall be the amount resulting by
adjusting the basic consideration payable under Paragraph 5 above
to reflect the percentage of change (either up or down) occurring
in the consumer price index, U.S. Bureau of Labor. Statistics,
Department of Labor, through comparing the index on March 1 of the
current year with the index on March 1 of the immediately
preceding year.
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 provide for and supply at its expense all
janitorial 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 ordinances and regulations shall
be consistent 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. 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 and not to violate
the provisions of Lessor's property damage insurance policy. Any
such violations shall constitute a material breach of this
agreement.
2
10.. Lessee 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.
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 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 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.
12. 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
$2,000,000.00. Lessee shall file with Lessor's airport manager.
certificates of insurance evidencing the insurance coverage
required hereby.
13. Lessee agrees to indemnify Lessor against any liability
for injuries or death to persons or damage to property caused by
Lessee's negligent use or occupancy of the demised 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
3
•
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 or Lessor's
statutory tort immunity.
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. The parties acknowledge the existence of a certain lease
and fixed base operator's contract between them, dated January 22,
1985, with modifications, hereinafter referred to as the "FRO
Contract". Lessee agrees that if the FRO contract is terminated.,
for any reason, that this lease agreement shall terminate
effective the date of that agreement. 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 premises leased hereunder shall be deemed
to be personal property 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 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 the title thereto shall thereupon vest in the
Lessor.
16. Lessor may enter the premises leased to Lessee at any
reasonable time for any purpose necessary or incidental to the
.4
•
rf
performance of its obligation of Lessee's obligations hereunder.
17. Lessee shall maintain the demised premises in a clean
and orderly fashion at all times.
18. Lessee shall not start oroperate 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 required,
postage prepaid, to the following address:
Lessor:
City of Fayetteville
c/o Airport Manager
113 W. Mountain
Fayetteville, AR 727-01.
Lessee: Aero -Tech Services, Inc.
P.O. Box 1266
Fayetteville, AR 72701
Telephone: 443-4343 •
21. This agreement shall be construed under the laws of the
State of Arkansas.
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.
IN WITNESS WHEREOF, the parties have
the day and year first above written.
executed this Lease on
CITY OF FAYETTEVILLE,, ARKANSAS
By: zaearny�
Mayor