HomeMy WebLinkAbout77-89 RESOLUTIONir
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RESOLUTION NO. 77-89
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C
SCANNED
A RESOLUTION AUTHORIZING THE MAYOR AND CITY
CLERK TO EXECUTE A ONE-YEAR AGREEMENT WITH
CONTINENTAL OZARK, INC. FOR LEASE OF THE NORTH
ONE-HALF OF THE EXECUTIVE AIRPORT HANGAR AT
THE FAYETTEVILLE MUNICIPAL AIRPORT.
BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1. That the Mayor and City Clerk are hereby
authorized and directed to enter into and execute a one-year
agreement with Continental Ozark, Inc. for lease of the north one-
half of the executive aircraft hanger at the Fayetteville
Municipal Airport. A copy of the agreement authorized for
execution hereby is attached hereto marked Exhibit "A" and made a
part hereof.
PASSED AND APPROVED this 5th day of September , 1989.
APPROVED
By: /id/S(277.
ATTEST
By:
Mayor /
LEASE AGREEMENT
This LEASE AGREEMENT made this day of
19 between the City of Fayeteville, Arkansas, hereinafter
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called
Ozark,Lessor , and Continental hereinafter called
v
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"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 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 similar-
ly 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, 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 hereinarfter provided,
the intial term of this agreement shall be for one (1 ) year(s)
commencing on the 1st day of September 1989 , and ending
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on the 31st day of August 199° 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 = 1/2 X Total Debt Service on Bonds for Option Period
Number of 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 maintenance 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 $ 653.48 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 is not under the exclusive control of
individual lessees.
7. Lessee shall provide 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 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
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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 cease until such time as the premises shall be fully
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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.
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
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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.
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 unreasonable delay. All,property
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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, 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) 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
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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
operations 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 paid, to the following address:
LESSOR: Airport Manager's Office
City of Fayetteville
113 West Mountain Street
Fayetteville, Arkansas 72701
LESSEE: Continental Ozark, Inc.
c/o Mr. E. G. Bradberry
Post Office Box 1503
Fayetteville, Arkansas 72701 PH: 501-521-5565
22. This agreement shall be construed under the laws of the
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State of Arkansas.
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23. All the convenants, 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
3 aR'-
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,i
A'TT=EST �. '�L£>:6.,
By=l
CITY OF FAYETTEVIL,LE, ARKANSAS
LESSOR ir
B y : le ;.difii(/. 7 � e
/ .
Mayor /
CONTINEN
LESSEE
By:
ARK, I
Title: EXEC, 06