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HomeMy WebLinkAbout53-91 RESOLUTIONamirt—r • RESOLUTION NO. 53-91 A RESOLUTION AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTIVE FIVE YEAR LEASE -AGREEMENTS ON THE TWO BAY CAR WASH FACILITIES LOCATED AT THE AIRPORT WITH CARCO RENTALS AND BAKER CAR & TRUCK RENTAL. • • 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 execute a five year lease agreement for a monthly rental fee of $500 per month on the two bay car wash facility located at the airport with CARCO Rentals, d/b/a Hertz, and Baker Car & Truck Rentals, d/b/a Avis. A copy of the lease agreement authorized for•execution hereby is attached hereto marked •Exhibit "A" and niadesa parg hereof. rd PASSED AND7APPROVED this 19th day of March • , 1991. L.. : • • tATTEST: a 4Ci ty C erkr.c:," \-‘ c14‘. Yeiff\\P agreement lease • I ! I • 1 APPROVED: b By: • • Mayor • • LEASE This agreement executed on this 19th day of March 1991, by and between the City of Fayetteville, Arkansas, hereinafter called Lessor and Carco Rentals Inc. and Baker Car and Truck Rental Inc., hereinafter called Lessees. WITNESSETH: That for and in consideration of the terms, covenants and conditions herein contained, the parties have agreed and hereby agree as follows: ARTICLE I Premises and Improvements 1.1 Recitals. Lessor owns and operates an airport known as Fayetteville Municipal Airport, situated in Washington County, State of Arkansas. Lessee desires to rent certain of said lands for the purpose of operating thereon a car wash and automobile service facility, and to operate the same in connection with the services rendered by the Lessees at Fayetteville Municipal Airport. 1.2 Demised Premises. and made a part hereof, is Attached hereto, marked Exhibit "A", a copy of a plat describing certain lands located at Fayetteville Municipal Airport. Lessor hereby leases and lets to Lessees, and the Lessees hereby agree to rent from Lessor, all of the parcel of land described in said Exhibit ItAlt and the existing structure subject to all the terms and conditions of this lease. 1.3 Possession Subject to Avigation. Lessor covenants and agrees that upon compliance with the terms and conditions of this lease, Lessees shall have quiet and peaceable possession of the demised premises, subject, however, to Lessor's reservation of an avigation easement for itself, and its licensees, at Fayetteville Municipal Airport, to use the airspace above the demised premises for the flight of Aircraft of any and all types and howsoever powered. Lessee expressly waives all claims against lessor arising out of, or resulting from, any noise or vibration that may at any time be caused by any such aircraft. 1.4 Improvements: Ownership and Removal. Prior to any expiration of this lease, Lessees shall be entitled to remove from the interior of the demised premises any or all improvements constructed thereon by Lessees: upon such removal, Lessees shall surrender to Lessor quiet •and peaceable possession of said lands and the structure in a good and safe condition. In the event the Lessees elect not to renew this lease and fails to remove its improvements on the demised premises within 60 days from the expiration or relinquishment of this lease, title to such remaining improvements shall, at the option of Lessor, vest in Lessor andisuch vesting shall occur in annual increments; Or Lessor may, at its option, require removal thereof by Lessees, or Lessor may remove the same at the expense of Lessees. At the time of lease expiration or relinquishment the Lessor shall have two (2) options: 1) All structures improvements, and facilities, not limited to items listed may vest to and become the property of the Lessor with no further compensation or expense. The Lessees agree to cooperate and execute all necessary documents for orderly transfer to Lessor. 2) Lessor at it's option, may require the removal of all structures, facilities, and improvements not limited to items listed. If removal is requested, it shall be solely at the Lessees expense. If request removal is not completed within 60 days, he Lessor may remove the improvements at the expense of the Lessee. It should be noted that under no circumstances will the ownership of the fueling system located on the property vest to the City. Upon termination of this contract, the fueling system shall be removed according to Federal s4candards and the property returned to the City in good and safe condition. 2 • ARTICLE II Lease and User 2.1 Term. The term of this lease shall be for a tern of five (5) years for the date of execution hereof. 2.2 Rental. The annual structure and ground rental rate for the initial term of this lease shall be Five Hundred Dollars ($500) for the term of this agreement, with said monthly compensation adjusted every 12 months to reflect any change in the consumer price index, either up or down. Rent shall be divided by the number of car rental agencies using the facility and paid in monthly increments on the monthly invoices provided by the City. Should any one or more of the car rental agencies cease operations, said ground rental shall be divided by the number of remaining agencies and adjusted up or down by the number of car rental agencies providing services in the facility at the Airport. Installment payments will be due from the termination date of the 7 existing Carco agreement, (December 18, 1990) and thereafter shall be paid in advance for the remaining term of this lease; provided, however, that in the event of occupancy for a partial month, Lessee shall pay the proportionate share of the monthly rent for the portion of the month in which lease termination occurs if the proper termination notice time frame has been met. 2.3 Purposes and Use. Lessee shall use the demised premises only in connection with, and in furtherance of, its car wash and automobile service facility. Lessee shall not commit, nor suffer to be committed any nuisance on any part of the demised premises. Lessee shall, at its expense, at all times maintain the demised premises and all improvements thereon in a •good, safe and attractive condition. All Local, State and Federal Standards in regard to fueling facilities shall be in full force and effect during the term of this agreement and all associated costs for compliance shall be borne by the Lessees. Additionally, the gravel drive area used to access the highway to the west and will be closed and not used as point of ingress or egress, and no trucks 3 or other vehicles not associated directly with the car rental operation at the Airport shall be permitted to utilize the area. No part of said property shall be used in any such manner, or for any such purpose, as to create smoke, dust, soot, •ashes, or any discharge into the atmosphere in quantities sufficient to affect the visibility of the airport from the air, or the airport and its movement areas. No electronic equipment, or electronic device, or testing device shall be operated on any part of said lands in such manner as to interfere in any respect with the navigational facilities or approach facilities now or hereafter operated, or to be installed and operated, in aid of aircraft approaching said airport, or flying in the vicinity thereof, either under IFR or VFR conditions; provided, that this said restriction shall not apply to any electrical appliances, motors or devices so constructed and operated as not to interfere with the havigational facilities or approach facilities of said airport. No portable buildings will be allowed on the leased property. 2.4 Indemnity. Lessee shall at all times save and hold Lessor free and harmless from any claim, loss, damage or expense arising out of, or connected with the operations of Lessee on the demised premises. Lessor shall keep in full force and effect during the'term of this agreement, building insurance equal to the cost of replacement of the facility. Lessee shall also keep in full force and effect during the term of this agreement workers compensation insurance in at least the minimum amounts required by the Laws of the State of Arkansas. Contents insurance, if desired by the Lessees shall be provided at their sole expense, the City in no way shall be responsible for the contents of said structure. ARTICLE III Miscellaneous 3.1 Assignability. Lessees shall not, without the written consent of'Lessor, assign this lease, or any rights thereunder, or sublet any part of the premises; provided, however, this restriction shall not bar transfer of the interest to any corporation with which Lessees may merge, or which may become a 4 a successor of Lessees. 3.2 Non -Discrimination. The operation and use of the demised premises, each Lessee agrees that it will not, on the grounds of race, color, creed, or national origin, discriminate against any person, or group of persons, as to hiring, terms or conditions of employment, promotion, discharge, or in any manner prohibited by the Federal Aviation Administration as respects to equal •opportunity in employment and employment conditions. Lessor shall be entitled to take such steps as may be necessary from time to time to enforce the provisions of this covenant. 3.3 Regulations. Each Lessee hereby agrees to operate at all times in accordance with the Minimum Standards as established by the Board of Directors and amended from time to time, and with all City, County, State, and Federal Regulations. 3.4 Termination Prior to Expiration. (a) By notice in event of any default or breach of conditions by each Lessee, Lessor may, at its option terminate this lease by giving each Lessee written notice of the alleged default or breach of condition. Each Lessee shall remedy such default or defect in performance of breach of condition within thirty (30) days from the date of such notice or immediately if a safety issue is involved in the said performance, default or breach. In event of the failure of each Lessee to do so, Lessor may, at its option, notify each Lessee of its election to terminate this lease, which shall thereupon be terminated at the close of the calendar month not less than twenty (20) days from the time of such notice. (b) In event either or both Lessees shall be adjudged bankrupt or shall apply for reorganization under any Federal Bankruptcy Statute, or in event a receiver of the assets of Lessee shall be appointed by any court of competent jurisdiction in Washington County, Arkansas, this lease shall automatically terminate. 5 3.5 Maintenance. Lessee covenants and agrees to maintain the demised premises in good condition and state of maintenance, keeping said premises safe, functioning, and sanitary in accordance with all City and State Codes and Standards. The property shall also be maintained in an aesthetically compatible condition, matching the surrounding grounds and facilities. 3.6 Utilities. Lessees shall pay for all gas, electricity, water service and sewer services provided to the demised premises. In addition, Lessees shall pay for sanitation service, telephone services, and any other desired utility installed on or about the structure. 3.7 Construction. This agreement shall be constructed under the laws of the State of Arkansas. This agreement contains all of the rights and privileges herein granted to Lessees pertaining to said lease. All prior negotiations relating thereto, whether oral or in writing, are merged herein, but nothing herein contained shall be deemed or construed to affect, modify, or alter any other existing contracts between Lessees and Lessor. 3.8 Disadvantaged Business Enterprise. The parties acknowledge that it is the policy of the Fayetteville Municipal Airport that disadvantaged business enterprises, hereinafter called DBE, as defined in 49 CFR, part 23 hereinafter called "Regulations", shall have the same maximum opportunity to participate in the performance of all Airport contracts awarded by the City, and that DBE requirements of the Regulations shall be included in and become a binding part of such contracts awarded by the City, and that DBE requirements of the Regulations shall be included in and become a binding part of such contracts awarded to contractors, sub -contractors, vendors, and other entities. The parties further acknowledge that it is the policy of the Fayetteville Municipal Airport that it shall not discriminate on the basis of race, color, national origin, or sex in the award and performance of all Airport Contracts. The DBE requirements of 49 CFR part 23 are incorporated herein by reference thereto. 6 ' • IN WITNESS WHEREOF, the parties have executed this Agreement on the date first above written. AT.T‘EST •t"...;:rt- SBy:s. - =ItCARCO RENTALS, •INC. e•-• tESSEE ;act, Amt. cf., BY 4:1,/- "i. .• NW' " tka Svi CITY OF FAYETTEVILLE, ARKANSAS LESSOR By: BAKER CAR AND TRUCK RENTAL LESSEE By: 9tekiji al>214)14) ATTE ATTEST By:Ssaa)g-a-•-•aa•-- \4em-ba-A-A-- 7 • AGENDA REQUEST X CONTRACT REVIEW GRANT REVIEW STAFF It'EVIEW FORM For the Fayetteville City Council FROM: Dale Frederickk Name ACTION REQUIRED: meeting of Airport Division Review and approvalThf a Medification Rentals Inc., to add 297.2 square feet Sf office space to used for business office space.at a rate of $15.86 per sq COST TO CITY: n/a produces revenue Cost of this Request Category/Project Budget $. Account Number Funds Used To Date Project Number BUDGET REVIEW: Bifdget toordthator • n/a Remaining Balance LEASE Al2' oFttC: sP,AcE CA }?co K'ETI TLS Res 3 -1/ n/a MICROFILMEL General Gvmt. Department of Lease Agreement with Carob their existing contract to be . ft., Staff recommends approval. Category/Project Name Program Name Fund • Budgeted Item Budget Adjustment Attached CONTRACT/GRANT/LEASE REVIEW: 4:ren :4411.441 Acco "Aliftd& A orney Administrative Services Director GA/r GRANTING AGENCY: A Coordinato ernal Auditor Purchasing Officer • STAFF RECOMMENDATION: Staff recommends approval Division Head Department Director Administrate • Mayor Director • 5/30/95 . ,Date 4 Date k-47 Date Date Date --6 Date Cross Reference New Item: Yes No Prey Ord/Res #: Pet. 6-3 -q( Orig Contract Date: FAYETTEVI LLE THE CITY OF FAYETTEVILLE, ARKANSAS DEPARTMENTAL CORRESPONDENCE • TO: Contract Review Personnel FROM: Dale Frederick, Airport Manager DATE: May 30, 1995 SUBJECT: Modification of Lease Agreement Attached please find a modification to the lease agreement with Carco Rentals Inc. The purpose of the modification is to add additional office space to the November 1, 1993 Lease Agreement. The rate per square foot is $15.86 for the remainder of 1995, and may be adjusted annually in accordance with air carrier space rentals. This modification is being made at the request of Carco, who is utilizing the space for business office operations. Should you have any questions or require additional information, please do not hesitate to contact this office. Attachment: One original Modification of Lease document Contract Review Form MODIFICATION OF LEASE AGREEMENT This AGREEMENT made this 1 st day of January, 1995, by and between the City of Fayetteville, Arkansas, hereinafter called "Lessor", with CARCO Rentals Inc., hereinafter called "Lessee", which shall be effective as of January 1, 1995. WHEREAS, Lessor and CARCO, entered into a lease agreement dated November 1, 1993; and WHEREAS, the parties desire to modify the aforesaid lease agreement. NOW THEREFORE, THE PARTIES MUTUALLY AGREE AS FOLLOWS: 1. Paragraph 4 of said lease is modified by amending the 1st subparagraph at the end to add the following: A. Lessee further agrees to lease for it's exclusive use 297.2 square feet of office space in the terminal building as shown on Exhibit B, such space being more particularly identified as storage and office space at the current rate of $15.86 per square ft. for calendar year 1995. Said rental shall be adjusted at the same air carrier space rates which are subject to annual adjustment in December of each year. 2. All provisions of the lease are incorporated herein and are hereby modified to conform herewith but in all other respects are to be and shall continue in full force and effect IN WITNESS WHEREOF, the parties have executed this Modification of Lease on the day and year first above written. City Clerk ATTS'It 'act, By: NAActiAl\kall, Title: CITY OF AYETT VILLE, ARKANSAS Iay By: 440 LESSEE By: Title: or