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HomeMy WebLinkAbout2-92 RESOLUTIONV • • RESOLUTION NO. 2-92 A RESOLUTION AUTHORIZING A LEASE MODIFICATION WITH TRANS STATE AIRLINES TO ADD 486 SQUARE FEET OF EXCLUSIVE SPACE. 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 lease modification with Trans State Airlines to add 486 square feet of exclusive space. A copy of the lease modification and amorization schedule authorized for execution hereby is attached hereto marked Exhibit "A" and made a part hereof. PASSED AND APPROVED this 7th day of January , 1992. ATTEST: 7 By City C'erk APPROVED: !--97 By:C. • • Mayor • t • ,., • • • • 1 • 1 MODIFICATION OF LEASE AGEZZEMMT I ; 1. • 1 • • doe . • 1, . • 1 P‘i This AGREEMENT made this 1/ day of �18Nam^ , 1993, by and between the City of Fayetteville, ArkansasC,lherein- after called "Lessor", with Trans State Airlines, Inc., hereinafter called "Lessee", which shall be effective as of January 12, 1993. WHEREAS, Lessor and Trans State Airlines, Inc., entered into a lease agreement dated February 1, 1991, which lease has been modified by subsequent agreements and is incorporated herein by reference thereto; and WHEREAS, the parties desire to further modify the aforesaid lease agreement. NOW, THEREFORE, THE PARTIES MUTUALLY AGREE AS FOLLOWS: 1. Paragraph 5 of said lease is modified by amending subparagraph A to read: A. For the exclusive use of 598.71 square feet of office space in the terminal building such space being more particularly identified as a ticket counter, operations area, storage and office space, and freight handling, $15.86 per square foot for the calendar year 1993. 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. ATTEST %%�� ,/ By: 4Z, lJlm.� )2/ Title: Siziw9. 4/1VQDIUL-- CITY OF AYETTEVILLE, ARKANSAS M yor Fred Hanna By: LESS G By` /� Title: � t e field tb .— f#G JJ • • • FRANK CRYSTAL AVIATION A Division of Frank (rvslal c (0.Inc. INSURANCE December 26, 1991 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72702 Attention: County Clerk Re: Trans States Airlines, Inc. Certificate of Insurance No. TS91-092 43 Broad Scree; New York, NY :0004-2;1,7 212) i44-2444 800: 221 -SMI) Fax (212: 907-;01,z 'telex 222'92 Ft. Laadcrdale Houston Kansas City Dear Sir/Madam: Enclosed, please find our Certificate of Insurance No. TS91-092. I trust you will find this to be in order. Any questions, please call me. Very truly yours, Pieter Terwilleger PT:w]v cc: Ed McEnroc - Trans States Airlines Ian Gregory - Crawley Warren INSURED: CERTIFICATE HOLDER: CERTIFICATE OF INSURANCE TRANS STATES AIRLINES, INC. 3990 Fee Fee Road, St. Louis MO 63044 CERTIFICATE NO: TS91-092 aAm December 26. 1991 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72702 Attention: County Clerk Me, Frank Crystal f Co., Inc., as insurance brokers, hereby certify that the following described insurance is in force as of the dates reflected hereon and is underwritten as follows: SHARE 83.0% 100% 5.0% 2096 POLICY PnWOD: TYPE OF COVERAGE - LOCATIONS COVERED: UNDERWRITER'S) IUAYDS AND BRr119I WMPANIES AVIATORS INIVRNAIIONAL INSURANCE GROUP AVIATION OFFICE OF AMERICA SOUTHERN MARINE & AVIATION UNOERWRYII?R.S, INC. MAY 1. 1991 113 MAY 1, 1992 AT 1101 A.M. LOCAL STANDARD 'Ilton POLICY f 00910552 BO5 80.0181 21019/301 1464641 $1,000.000. Combined Single Limit any one occurrence Bodily Injury and Property Damage including Personal Injury and Public I.iability. Worldwide. ALL PROVISIONS SUBJECT TO POLICY TERMS, CONDITIONS, LIMITATIONS, AND EXCLUSIONS In respect to a Lease Agreement dated February 1, 1991 between the City of Fayetteville, Arkansas and Trans States Airlines. Should the above mentioned policies be cancelled, we, the undersigned, will endeavor to give IQ days (10 days with respect to non-payment of premium) written notice to the holder of this certificate, but failure to give such notice shall impose no obligation of any kind upon the undersigned. FRANK CRYSTAL & CO., INC. 40 BROAD STREET - NEW YORK, NY 10004 (212) 344-2444 Authorized Signature LETTER AGREEMENT This AGREEMENT is made and entered into by and between the signatories of this letter as representing the City of Fayetteville, hereinafter referred to as "City", and Trans State Airlines, Inc., hereinafter referred to as "Airlines". Airlines desires and City makes available within the airport terminal, an area of exclusive use pursuant to pargraph 11 of the existing lease between the parties dated February 1, 1991 attached hereto and made a part hereof as Exhibit A. Terms and conditions are outlined hereunder, for the mutual understanding and agreement of City and Airlines. PART I — CONSTRUCTION A. City agrees to make available to the Airlines, subject to formal lease modification approval of the City Board of Directors, an area of exclusive use within the terminal building. B. Airlines agrees to construct a ticket counter and airlines operation facility on such area of exclusive use in substantially the same manner, terms, conditions and costs as set forth in the accepted proposal signed by Charles Courtney on 4 April 1991 and attached hereto as Exhibit B. C. Airlines agrees to defend, indemnify and hold City harmless against any expense, claim, loss, or liability as the result of Airlines use or occupancy of the demised premises or the carelessness, negligence or improper conduct of Airlines, Airlines agents, servants, employees, customers, visitors or licensees. PART I I — RENTALS Sc CHARGES A. Upon completion of construction, City shall measure or cause to be measured the square footage of the exclusive use area floor space. The rate for said space shall be equal to that rate which is paid by the other air carriers operating in the terminal building and be subject to annual renegotiation. B. City shall issue Airlines a credit, on their monthly billing invoice, in the amount of the monthly primary lease exclusive use area rental fee. Said credit shall be issued monthly for such period until the total costs of construction is reimbursed or a cumulative total of said credit reaches $10,000.00, whichever is less. Further, Airlines shall submit copies of all construction expenses and expenditures to City. C. Should Airlines, in any manner, vacate the subject exclusive use area, City will issue no further credits toward construction costs of the $10,000.00 cumulative total. D. All other rentals and charges due City, including but not limited to: landing fees, non-exclusive rental fees, 20% base fee, fuel flowage fees, enplanement fees and copier charges, shall be paid by Airlines as set out in lease dated February 1, 1991, attached hereto as Exhibit A. PART S I Z — TEaT4I24211.9P=O14 A. All construction improvements as set forth in this Letter Agreement shall be deemed to be the property of City. Upon expiration or other termination of the aforementioned exisiting lease, Airlines termination of service to Fayetteville, or upon Airlines moving to another area within the airport terminal, City may either, in their sole discretion, take possession of such improvements or require Airlines, at Airlines expense, to remove such improvements from the airport terminal and return exclusive use area to its original condition. If City should decide to require such removal, City shall relinquish title to all such improvements to Airlines. ACCE1?T2k24CE The acceptance by both parties of the terms of this agreement shall enable Airlines to begin construction of a ticket counter and an operation facility in the designated area for Airlines exclusive use. Further, it is understood by both parties that upon completion of said construction, approval of a Lease Modification is required by the Board of Directors, City of Fayetteville, Arkansas. The validity of this agreement and of any of its terms and provisions as well as rights and duties of the parties hereunder, shall be governed by the laws of the State of Arkansas. Nothing contained herein shall obligations of the as Exhibit A. parties contained CITY OF FAYETTEVILLE, / By: rci✓ tile: .4 Mar. t r te: April 26, 1991 ARKANSAS serve to alter or amend the in the existing lease hereto • • • • AMORT Z ZAP Z ON S CHEOULE FOR CONSTRUCT=OH or COUNTER SPACE von mans STATE A Z RL Z NE S Pursuant to the attached agreement entered into the April 28, 1991 between Trans State Airlines and the City of Fayetteville, the attached is a schedule of the monthly credit to be received against a $10,000 capitalization for counter improvements: TOTAL May, June, July, August, September, October, November, December, January, February, March, April, May, June, July, August, CREDIT: 1991 1991 1991 1991 1991 1991 1991 1991 1992 1992 1992 1992 1992 1992 1992 1992 $642.33 $642.33 $642.33 $642.33 $642.33 $642.33 $642.33 $642.33 $642.33 $642.33 $642.33 $642.33 $642.33 $642.33 $642.33 $365.05 510.000.00 Pro -rated exclusive space rental in the amount of $277.28 shall be payable for the remaining August balance. From September 1, 1991, through December 31, 1991 exclusive rental for this space shall be paid at the $15.86 rate. This rate is annually negotiable and any change shall be set forth in accordance with the existing lease agreement for 1993 and the remaining years in the lease. EXHIBIT MA" • MODIFICATION OF LEASE AGREEMENT 1790 This AGREEMENT made this Tez day of , X1993"; by and between the City of FayettevillQ, Arka sas, herein- after called "Lessor", with Trans State Airlines, Inc., hereinafter called "Lessee", which shall be retroactive effective to May 1, 1991. WHEREAS, Lessor and Trans State Airlines, Inc., entered into a lease agreement dated February 1, 1991,; and WHEREAS, the parties desire to modify the aforesaid lease agreement. NOW, THEREFORE, THE PARTIES MUTUALLY AGREE AS FOLLOWS: 1. Paragraph 5 of said lease is modified by amending subparagraph A to read: A. For the exclusive use of 486 square feet of office space in the terminal building such space being more particularly identified as a ticket counter, operations center, storage and office space, and freight handling and storage room, the sum of $15.86 per square foot for 1991 retroactive to May 1, 1991. Lessee shall receive credit against a capitalization expense of $10,000 for counter construction until said expense is amortized. Upon amortization of this expense, payment of the aforesaid exclusive space rent shall be due and payable in accordance with paragraph 5 of this contract. 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-ctF FAYETT I, ARKANSAS i- %/ ^ - 0 By:-/I� r . Cit Manager r ATTEST By: ,c/%Me� �GEtnrw� Title: Cc,t.�t. 2&&k ATTEST By: ..-‘‘../.7.4 Title: 4 . ',%1 ',.• L LES By: Title: 2 c 46+t_ a • 1 I :�� 141`rI 14 11.1.14. THE CHV OF fA+E'TEVI.tE, ARKANSAS DEPARTMENTAL CORRESPONDENCE TO: Contract Review Personnel FROM: Dale Frederick, Airport Manage DATE: February 26, 1993 SUBJECT: MODIFICATION OF LEASE/TRANS STATE AIRLINES Due to the construction of the expanded north end gate area, the hallway that provides ramp and baggage handling access to Trans State Airlines had to be lengthened. It is Trans State Airlines desire to utilize this extended hallway for continued passage way use and additional storage. This lease modification adds an additional 112.71 square feet to their exclusively leased space. The approval of this modification will allow for the inclusion of this space in their lease agreement and provide additional revenue from rental compensation. At Trans States request, and additional original has been requested for signature so they may also have a completed original modification on file. Should you have any questions or require additional information, please do not hesitate to contact this office. • CITY OF FAYETTEVILLE REVIEW FORM PROJECT: ,Ccne, Vtiat. L.7‘..94,/[And S/ie9z_ AlANAL) PROJECT MANAGER: n0 1ti..ce., DEPARTMENT/D1VISION: 0;yvin Please review the att�a,}ched con ct and/or change order between the City of Fayetteville and rn..a Si 4.t itr frac) /2e , »ieso. Authorizing Signature Date Comments City Attorney } ) ,• £inatiea Diie�tor ` •; . Purchasing Manager Budget Coordinator ,c st - 3 a -9:e < /,/ Internal Auditor 1 ' ADA Coordinator J RETURN TO �n.urar%r.viJN: WHEN REVIEW PROCESS HAS BEEN COMPLETED. Department Director° Administrative Services Director 1 INSURED: r t CERTIFICATE OF INSURANCE TRANS STATES AIRLINES, INC. 9275 Genaire Drive, St. Louis MO 63134 CERTIFICATE HOLDER: Qty of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72702 Attention. County Clerk f CERTIFICATE NO: TS93-092 DATE: May 1, 1993 We, Frank Crystal & Co., Inc., as Insurance brokers, hereby certify that the following described Insurance Is In force as of the dates reflected hereon and Is underwritten as follows: SHARE, 35.5% 3t0% 15.0% 7.5% 4.0% 100A% UNDERWRITERS) LLOYDS AND BRITISH COMPANIES AIG AVIATION lA REUNION AERIENNE CAMAT. AVIATION SOMERSET AVIATION. INC. MUTUAL MARINE OFFICE POLICY PERIOD: MAY 1,1993 TO MAY 1, 1994 AT 12:01 AM, LOCAL STANDARD TIME TYPE OF COVERAGE: Aircraft Hull and Liability Insurance LOCATIONS COVERED: Worldwide ?here is no coverage for flights to Libya POLICY* AA931254 AV322-6156 AA931254C AA9312548 80580/01/93 MMO.07428AV593 THIS CERTIFICATE IS SUBJECT TO ALL OF THE TERMS, CONDITIONS AND LIMITATIONS OF THE POLICIES, AND DOES NOT ALTER, AMEND OR EXTEND THE COVERAGE PROVIDED UNDER THE POLICIES. IN THE EVENT OF A CONFLICT BETWEEN THE CERTIFICATE AND THE POLICIES, THE PROVISIONS OF THE POLICIES WILL BE CONTROLLING. In respect to a Lease Agreement dated February 1, 1991 between the City of Fayetteville, Arkansas and Trans States Airlines. Should the above mentioned policies be cancelled, we, the undersigned, will endeavor to give 3Q days (10 days with respect to non-payment of premium) written notice to the holder of this certificate, but failure to give such notice shall impose no obligation of any kind upon the undersigned. FRANK CRYSTAL & CO., INC. 40 BROAD STREET - NEW YORK, NY 10004 (212) 3442444 s Authorized Signature / •Z