HomeMy WebLinkAbout18-99 RESOLUTIONRESOLUTION NO. 18 - 9 9
A RESOLUTION APPROVING A LEASE WITH NORTHWEST
AVIATION TECHNOLOGIES CENTER FOR AN EXECUTIVE
HANGER LOCATED AT 4248 SOUTH SCHOOL AVENUE; AND
APPROVAL OF A BUDGET ADJUSTMENT FOR BUILDING
IMPROVEMENTS TO COMPLY WITH CURRENT BUILDING
CODE STANDARDS
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETFEVILLE,
ARKANSAS:
Section 1. That the City Council hereby approves a lease with Northwest Aviation
Technologies Center for an executive hanger located at 4248 South School Avenue; and authorizes
the Mayor and City Clerk to execute said lease. A copy of the lease agreement is attached hereto
marked Exhibit "A" and made a part hereof.
Section 7 The City Council hereby approves a budget adjustment in the amount of
$75,000 increasing Building Improvements, Acct. No. 5550 3960 5804 00, Project No. 99050 1
decreasing Building Improvements, Acct. 5550 3960 5804 00, Project No. 99039 1, in the amount
of 560,000; and Use of Fund Balance, Acct. No. 5550 0955 4999 99, in the amount of $15,000. A
copy of the budget adjustment is attached marked Exhibit "B" and made a part hereof.
PASSED AND APPROVED this2 day of February , 1999.
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eather Woodruff, City C fef
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APPROVED
By.
Hanna, Mayor
•
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•
• EXHIBIT A;
TOP 4.2
EXECUTIVE HANGAR LEASE AGREEMENT
This LEASE AGREEMENT made this day of ,t o . 19 79.
between the City of Fayetteville, Arkansas. hereinafter called "Lessor". and Northwest .Arkansas
Aviation Technologies Center. of 100 W. Center. Suite 300. Faveneville. AR 72701. 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 is the owner of a facility at the Airport: and
WHEREAS. Lessee desires to lease this facility.
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 facility at 4248 South
School Avenue. Fayetteville. Arkansas. 72701 as reflected on Exhibit "A" attached hereto and made
a part hereof.
2. Lessee is granted the use. without charge, 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 hereof or additions thereto,
roadways. not less than one hundred (100) parking spaces. runways. ramps (including noise barriers),
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2
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. students. 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 the Lease
Agreement shall be for a period of five (5) years. commencing on the later of: (I) the Date of
Lessee's Beneficial Occupancy, or (ii) the 1" day of Mav . 1999 (the effective date hereinafter
referred to as the "Commencement Date") and ending on the 30' day of April. 2004. Lessor further
agrees to extend this Agreement for three additional five (5) year terms. The parties agree that the
rental to be effective as of the commencement of each of the renewal terms shall be equal to the rate
set forth in Section 5. as adjusted by the CPI Index. as defined to mean the monthly index published
by the United States Department of Labor. Bureau of Labor Statistics. Consumer Price Index for all
Urban Customers (CPI -U) Dallas -Fort Worth. Texas - All Items (1982-1984=100). Index utilized
will be as of December 31 as published on March 31 prior to the renewal date. Lessor and Lessee
agree that Either Party may terminate this .Agreement at any time after the first year of Lessee's
beneficial occupancy by providing notice to the other party thiny: (30) days prior to the effective date
of termination.
Lessee agrees to pay Lessor for the use of the demised premises. facilities. rights. and
privileges granted hereunder the sum of S 4.500.00 per month during the initial LL.asr. term.
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However. should the Lease term begin on a day other than the first day of a calendar month. or
should the Lease end on a day other than the last day of a calendar month. such partial month Lease
payment shall be a pro -rated share of the monthly Lease payment. The initial Lease payment is due
and payable upon the Commencement Date and all subsequent monthly Lease payments shall be due
and payable in advance on or before the 1st day of each calendar month thereafter.
6. Lessor shall maintain and keep in good repair so much of the Airport premises as is
not under the exclusive control of Lessee.
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.
3. 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 all city. county. and state rules and regulations. including all current
tire codes. and orders of the Federal Aviation Administration with respect to aircraft operations at
the Airport. 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 pan hereof
as if set out word for word. Lessor warrants and covenants unto Lessee that no hazardous or any
other substances. as defined in 40 CFR 302. exist on the demised premises which are restricted.
prohibited or penalized by an "Environmental Law". which term shall mean any federal. state or
local law, regulation or ordinance relating to pollution or protection of the environment. If any
testing or study discloses the existence of any hazardous substances on the demised premises that
are determined to have been present on the demised premises prior to the execution of this Lease.
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it shall be Lessor's responsibility to timely arrange and pay for any costs associated with
environmental testing and/or studies. remedial action. cleaning up or removing the hazardous
substances to a proper disposal site in accordance with all applicable laws and the governmental
agency having jurisdiction thereof.
9. Lessor authorizes Lessee to use the premises for the implementation and conducting
of an Aviation Maintenance Technology Program. including but not limited to. the provision of such
training and educational components as are required for an airframe and power plant certification
by the Federal Aviation Administration under FAR 147. Subject to the prior written approval of the
Lessor, which shall not be unreasonably withheld. Lessee shall also have the right to use the demised
premises for other purposes ancillary or related to Lessee's operations. Aircraft. aircraft components
and sub -components. vehicles. equipment. materials and/or supplies necessary to the training
program may be stored on the demised premises. Lessee further agrees to store flammable material
only in approved containers. and not to violate the provisions of Lessor's standard commercially
available property damage insurance policy. Any such violations shall constitute a material breach
of this agreement.
10. If the demised premises are partially damaged by fire or other casualty which is not
due to the negligence or fault of the Lessee, 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 the Lessor's own cost and the rent
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payable hereunder shall be adjusted as set forth above. or either Lessor or Lessee 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.
11. Lessor shall procure and maintain in force during the term of this Agreement fire and
extended coverage on the facility in an amount equivalent to the replacement cost thereof. Lessee
shall be required to insure anv contents within the facility.
During the term of this agreement Lessee shall at all times maintain general public
liability insurance in the amount of S1.000.000.00. 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 gross negligent use or occupancy of the leased premises;
provided. however. that Lessee shall not be liable for anv injury, damage or loss occasioned by the
negligence of Lessor or its agents or employees; and provided further. that each party shall give
prompt and timely notice of any claim made or suit instituted which in anv way directly or indirectly
affects or might affect either party, and each party shall have the right to compromise and defend the
same to the extent of its own interest. This clause shall not be construed to waive that tort immunity
as set forth under Arkansas Law.
13. Improvements: Lessor shall bear the cost of all improvements necessary to comply
with all current State and local building codes for the basic building structure area including. but not
limited to: (1) floors. walls. ceiling and roof: (ii) sprinkler system: (iii) all plumbing and fittings
thereto: (iv) primary electrical circuits; (v) heating. ventilation and air conditioning (HVAC): (vi)
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maintenance of existing paved ramp and parking lots: and (vii) existing perimeter fences. Lessee
shall bear the cost of all improvements or additions made to the interior of the building for new
classrooms and/or labs. including. but not limited to: (I) the construction of new walls and ceilings:
(ii) the installation of new stairwells. doors and lighting fixtures: (iii) the relocation of existing
and/or installation of new electrical circuits: (iv) the construction of a new sidewalk on the north side
of the existing building: and the installation of new HVAC ducts and grates. No improvements or
additions to any part of the leased premises shall be made by Lessee without the prior written
approval of the Airport Manager. Any signs to be erected on or attached to the leased premises must
have the prior written approval of the Airport Manager and conform to all City ordinances.
14. Maintenance: The Lessor shall be responsible only for major maintenance of the
existing equipment, i.e. replacement of heating unit and other equipment installed by Lessor which
includes roof, exterior walls and exterior plumbing. HVAC. and sprinkler system. existing paved
ramp and paved parking lots. The Lessor agrees that if the roof or any part of the exterior walls or
exterior plumbing of said building thereof shall become defective or damaged at am time during the
term due to ordinary wear and tear and not due to negligence of the Lessee, or Lessee's agents or
invitees, upon notice from Lessee. the Lessor will immediately cause repairs to be made and restore
the defective portions to good condition. Routine maintenance of the large aircraft doors shall
remain the responsibility of the Lessor.
15. 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
6
of the amount due and unpaid. Lessor shall also have the right to terminate this .Agreement in the
event Lessee breaches any other terms of this Agreement: provided. however, no breach shall be
deemed to exist unless Lessee fails to cure said breach within thirty (30) days after receipt of written
notice thereof. As to curing of a breach (other than the payment of rent) which would reasonably
require a greater period of time for curing than is provided for above. if the Lessee shall. within the
time stipulated. commence such curing and diligently pursue same then the above time period shall
be extended to allow Lessee reasonable opportunity to complete said cure.
•
16. 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
permanent interior structures installed. erected. or placed by Lessee in, on. or about the premises
leased hereunder shall remain the property of Lessor.
17. Lessor may enter the premises leased to Lessee at any reasonable time for any purpose
necessary or incidental to the performance of its obligation.
18. Lessee shall maintain the demised premises in a clean and orderly fashion at all times.
19. Lessee shall not start or operate aircraft engines within the facility 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:
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LESSOR: Airport Administration Office
4500 S. School. Suite F
Fayetteville. Arkansas 72701
Phone: 501-5214730. ext. 6
LESSEE: Chairman.
Northwest Arkansas Aviation Technologies Center
100 West Center Suite 300
Fayetteville. AR 72701
Telephone: 501-582-2100
23. This Agreement shall be construed under the laws of the State of Arkansas.
2a. 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.
(The remainder of this page is intentionally left blank.)
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IN WITNESS WHEREOF. the parties have executed this Lease on the day and year first
above written.
ATTEST:
By:
LESSOR:
CITY OF FAY E. ARKANSAS
Bv:
Altadi
Heather Woodruff. City Clerk
ATTEST
Tale:
.ot
(Secretary)
Fred Hanna. Mayor
LESSEE:
NORTHWEST ARKANSAS AVIATION
TECHNOLOGIES,TER
By: /.A.'_I� ._
Mark i mons
Title
9
Chairman
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EXECUTIVE HANGAR LEASE AGREEMENT
This LEASE AGREEMENT made this day of
, 19
between the City of Fayetteville, Arkansas, hereinafter called "Lessor", and Northwest Arkansas
Aviation Technologies Center, of 100 W. Center, Suite 300, Fayetteville, AR 72701, 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 is the owner of a facility at the Airport; and
WHEREAS, Lessee desires to lease this facility.
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 facility at 4248 South
School Avenue, Fayetteville, Arkansas, 72701 as reflected on Exhibit "A" attached hereto and made
a part hereof.
2. Lessee is granted the use, without charge, 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 hereof or additions thereto,
roadways, not less than one hundred (100) parking spaces, runways, ramps (including noise barriers),
1
•
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, students, 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 the Lease
Agreement shall be for a period of five (5) years, commencing on the later of: (I) the Date of
Lessee's Beneficial Occupancy, or (ii) the 1" day of Mav , 1999 (the effective date hereinafter
referred to as the "Commencement Date") and ending on the 30th day of April, 2004. Lessor further
agrees to extend this Agreement for three additional five (5) year terms. The parties agree that the
rental to be effective as of the commencement of each of the renewal terms shall be equal to the rate
set forth in Section 5, as adjusted by the CPI Index, as defined to mean the monthly index published
by the United States Department of Labor, Bureau of Labor Statistics, Consumer Price Index for all
Urban Customers (CPI -U) Dallas -Fort Worth, Texas - All Items (1982-1984=100). Index utilized
will be as of December 31 as published on March 31 prior to the renewal date. Lessor and Lessee
agree that Either Party may terminate this Agreement at any time after the first year of Lessee's
beneficial occupancy by providing notice to the other party thirty (30) days prior to the effective date
of termination.
5. Lessee agrees to pay Lessor for the use of the demised premises facilities, rights, and
privileges granted hereunder the sum of $ 4.500.00 per month during the initial Lease term.
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However, should the Lease term begin on a day other than the first day of a calendar month, or
should the Lease end on a day other than the last day of a calendar month, such partial month Lease
payment shall be a pro -rated share of the monthly Lease payment. The initial Lease payment is due
and payable upon the Commencement Date and all subsequent monthly Lease payments shall be due
and payable in advance on or before the 1st day of each calendar month thereafter.
6. Lessor shall maintain and keep in good repair so much of the Airport premises as is
not under the exclusive control of Lessee.
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.
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 all city, county, and state rules and regulations, including all current
fire codes, and orders of the Federal Aviation Administration with respect to aircraft operations at
the Airport. 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. Lessor warrants and covenants unto Lessee that no hazardous or any
other substances, as defined in 40 CFR 302, exist on the demised premises which are restricted,
prohibited or penalized by an "Environmental Law", which term shall mean any federal, state or
local law, regulation or ordinance relating to pollution or protection of the environment. If any
testing or study discloses the existence of any hazardous substances on the demised premises that
are determined w have been present on the demised premises prior to the execution of this Lease,
3
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it shall be Lessor's responsibility to timely arrange and pay for any costs associated with
environmental testing and/or studies, remedial action, cleaning up or removing the hazardous
substances to a proper disposal site in accordance with all applicable laws and the governmental
agency having jurisdiction thereof.
9. Lessor authorizes Lessee to use the premises for the implementation and conducting
of an Aviation Maintenance Technology Program, including but not limited to, the provision of such
training and educational components as are required for an airframe and power plant certification
by the Federal Aviation Administration under FAR 147. Subject to the prior written approval of the
Lessor, which shall not be unreasonably withheld, Lessee shall also have the right to use the demised
premises for other purposes ancillary or related to Lessee's operations. Aircraft, aircraft components
and sub -components, vehicles, equipment, materials and/or supplies necessary to the training
program may be stored on the demised premises. Lessee further agrees to store flammable material
only in approved containers, and not to violate the provisions of Lessor's standard commercially
available property damage insurance policy. Any such violations shall constitute a material breach
of this agreement.
10. If the demised premises are partially damaged by fire or other casualty which is not
due to the negligence or fault of the Lessee, 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 the Lessor's own cost and the rent
4
payable hereunder shall be adjusted as set forth above, or either Lessor or Lessee 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.
11. Lessor shall procure and maintain in force during the term of this Agreement fire and
extended coverage on the facility in an amount equivalent to the replacement cost thereof. Lessee
shall be required to insure any contents within the facility.
During the term of this agreement Lessee shall at all times maintain general public
liability insurance in the amount of$1,000,000.00. 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 gross 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 each party shall give
prompt and timely notice of any claim made or suit instituted which in any way directly or indirectly
affects or might affect either party, and each party shall have the right to compromise and defend the
same to the extent of its own interest. This clause shall not be construed to waive that tort immunity
as set forth under Arkansas Law.
13. Improvements: Lessor shall bear the cost of all improvements necessary to comply
with all current State and local building codes for the basic building structure area including, but not
limited to: (1) floors, walls, ceiling and roof; (ii) sprinkler system; (iii) all plumbing and fittings
thereto; (iv) primary electrical circuits; (v) heating, ventilation and air conditioning (HVAC); (vi)
maintenance of existing paved ramp and parking lots; and (vii) existing perimeter fences. Lessee
shall bear the cost of all improvements or additions made to the interior of the building for new
classrooms and/or labs, including, but not limited to: (I) the construction of new walls and ceilings;
(ii) the installation of new stairwells, doors and lighting fixtures; (iii) the relocation of existing
and/or installation of new electrical circuits; (iv) the construction of a new sidewalk on the north side
of the existing building; and the installation of new HVAC ducts and grates. No improvements or
additions to any part of the leased premises shall be made by Lessee without the prior written
approval of the Airport Manager. Any signs to be erected on or attached to the leased premises must
have the prior written approval of the Airport Manager and conform to all City ordinances.
14. Maintenance: The Lessor shall be responsible only for major maintenance of the
existing equipment, i.c. replacement of heating unit and other equipment installed by Lessor which
includes roof, exterior walls and exterior plumbing, HVAC, and sprinkler system, existing paved
ramp and paved parking lots. The Lessor agrees that if the roof or any part of the exterior walls or
exterior plumbing of said building thereof shall become defective or damaged at any time during the
term due to ordinary wear and tear and not due to negligence of the Lessee, or Lessee's agents or
invitees, upon notice from Lessee, the Lessor will immediately cause repairs to be made and restore
the defective portions to good condition. Routine maintenance of the large aircraft doors shall
remain the responsibility of the Lessor.
15. 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
6
•
of the amount due and unpaid. Lessor shall also have the right to terminate this Agreement in the
event Lessee breaches any other terms of this Agreement; provided, however, no breach shall be
deemed to exist unless Lessee fails to cure said breach within thirty (30) days after receipt of written
notice thereof. As to curing of a breach (other than the payment of rent) which would reasonably
require a greater period of time for curing than is provided for above, if the Lessee shall, within the
time stipulated, commence such curing and diligently pursue same, then the above time period shall
be extended to allow Lessee reasonable opportunity to complete said cure.
16. 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
permanent interior structures installed, erected, or placed by Lessee in, on, or about the premises
leased hereunder shall remain the property of Lessor.
17. Lessor may enter the premises leased to Lessee at any reasonable time for any purpose
necessary or incidental to the performance of its obligation.
18. Lessee shall maintain the demised premises in a clean and orderly fashion at all times.
19. Lessee shall not start or operate aircraft engines within the facility 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
Ccnified Mail, return receipt requested, postage paid, to the following address:
7
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LESSOR: Airport Administration Office
4500 S. School, Suite F
Fayetteville, Arkansas 72701
Phone: 501-521-4750, ext. 6
LESSEE: Chairman,
Northwest Arkansas Aviation Technologies Center
100 West Center Suite 300
Fayetteville, AR 72701
Telephone: 501-582-2100
23. This Agreement shall be construed under the laws of the State of Arkansas.
24. 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.
(The remainder of this page is intentionally left blank.)
8
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IN WITNESS WHEREOF, the parties have executed this Lease on the day and year first
above written.
ATTEST:
By:
Heather Woodruff, City Clerk
ATTEST:
By:
Title:
Buddy Philpot
(Secretary)
LESSOR:
CITY OF FAYETTEVILLE, ARKANSAS
By:
Fred Hanna, Mayor
LESSEE:
NORTHWEST ARKANSAS AVIATION
TECHNOLOGIES CENTER
By:
Title:
Mark Simmons
Chairman
Mark Simnonr,
Chairman
Dennis Anderson,
Vin Chairman
Baddy Philpot,
Secretary
Ken PrmmiL(
Drawer
Dunton:
Jim Von Grump
Richard Daniel
Berton Elliott
Adwinirhnbiur Ste
Caro! Lindtry
Uwlek Lindcry
Scott Van Laninsham
Midler! /indrry
•
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ARKANSAS AVIATION TECHNOLOGIES CENTER
100 West Calk?, Smite 300 - Fgrttnille, Arkattar 72701 Phones (501) 582-2100 - Far (501) 582-1919
February 17, 1999
Mayor Frcd Hanna
City of Fayetteville
113 W. Mountain
Fayetteville, AR 72701
Dear Mayor Hanna,
Please find two sets of the Hangar Lease Agreement and the Agreement between the City
and the Arkansas Aviation Technologies Center attached with this letter for your execution.
The first set is the original documents signed by Chairman Mark Simmons and Secretary
Buddy Philpot yesterday and the second set is a copy of the originals. Please keep the
originals for your files and return the copies to me at your convenience.
If you have any questions, please feel free to call Uvalde Lindsey or myself. Thank you for
all of your time and assistance in this matter.
V�Regarpds, j
Michael Lindsey
Administrative Staff
The Arkansas Anatian Tethnologies Cents it an equal wartmnity / affirmative action er aiiation
City of Fayetteville, Arkansas
Budget Adjustment Form
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EXHIBIT B
Budget Year
1999
Department: General Government
Division: Airport
Program: Airport Capital
Date Requested
01/26/99
Adjustment N
EXy.
BU DCr!
A
Project or Item Requested:
Funding is requested to establish a project to renovate an
executive hanger at Drake Field for the Northwest Arkansas
Aviation Technologies Center for use as an aircraft
construction and maintenance school.
Project or Item Deleted:
Funding proposed for this adjustment is from the HVAC Air
handlers project and use of fund balance.
Justification of this Increase:
The funding requested will provide the project funds to bring the
basic building systems up to the current building codes. The
NWAATC has committed to a multiyear lease agreement
utilizing the executive hanger formally occupied by Mesa
Airlines.
Justification of this Decrease:
The Air Handler project was for replacement of equipment in the
passenger terminal. With the relocation of essentially all of the
passenger air traffic the project can be postponed. Sufficient
cash & investments cxist to fund the remaining cost of the this
project.
Increase Expen e (Decrease Revenue)
Account Name Amount
Building Improvements 135,000
Account Name
Building Improvements
Use of Fund Balance
Account Number Project Number
5550 3960
Decrease Expense (Increase Revenue)
Amount
5804 00 99050 1
Account Number Project Number
60,000 5550 3960 5804 00
75,000
5550 0955 4999 99
99039 1
Approval Signatures
Req 'sic ,By
:417oordinalor
ittAian= aryctor
v—U.J J
m. Scryyr)*s Direc
Mayor
Datc
I-26- 99
Date
Dare
2(0,)A tsi R
y
tate
Blue Copp: Budget & Research / Yellow Copy: Requester
Budget Office Use Only
Type: A B C
Date of Approval
Posted to General Ledger
Posted to Project Accounting
Entered in Category Log
C:W PPt99BUDGEflBUDGTADANWAATC.
•
City of Fayetteville, Arkansas
Budget Adjustment Form
•
•
•
Budget Year
1999
Department: General Government
Division: Airport
Program: Airport Capital
Date Requested
01/26/99
Adjustment It
Project or Item Requested:
Funding is requested to establish a project to renovate an
executive hanger at Drake Field for the Northwest Arkansas
Aviation Technologies Center for use as an aircraft
construction and maintenance school.
Project or Item Deleted:
Funding proposed for this adju tment is from the FIVAC Air
handlers project and use of fund balance.
Justification of this Increase:
The funding requested will provide the project funds to bring the
basic building systems up to the current building codes. The
NWAATC has committed to a multiyear Icasc agreement
utilizing the executive hanger formally occupied by Mesa
Airlines.
Justification of this Decrease:
The Air Handler project was for replacement of equipment in the
passenger terminal. With the relocation of essentially all of the
passenger air traffic the project can be postponed. Sufficient
cash & investments exist to fund the remaining cost of the this
project.
Increase Expense (Decrease Revenue)
Account Name Amount
Building Improvements 135,000
Account Number Project Number
5550 3960
Decrease Expense (Increase Revenue)
Account Name Amount
Building Improvements
Use of Fund Balance
5804 00 99050 1
Account Number
60,000 5550 3960
75,000
5804 00
5550 0955 4999 99
Project Number
99039 1
Req
Approval Signatures
oordinator
Dimino irys for
r
1ttin. Servicts Director
Mayor
Date
i-26- 9ci
Date
Date
Date
Date
Blue Color: Nudger .( Research / Yellow Corr: Requester
Budget Office Use Only
Type: A B C
Date of Approval
Posted to General Ledger
Posted to Project Accounting
Entered in Category Log
•
C.'vtPlwveUDGENiU/Cr %DAN Watt TC.
FAYETTEVLLE
THE CITY OF FAYETTEVILLE, ARKANSAS
DEPARTMENTAL CORRESPONDENCE
TO: Fred Hanna, Mayor
From: Kevin Crosson, Administrative Services Director
re: Economic Development Grant Award - Aviation Maintenance Technology
Program
Date: February 3, 1999
The Arkansas Department of Economic Development has awarded a pass-through grant to
establish the Northwest Arkansas Aviation Technologies Center (NWAATC) at Drake Field in
Fayetteville. The NWAATC will utilize the funds to establish an aviation maintenance
technology program, which will be certified under the Federal Aviation Administration (FAA) -
Regulation 147 for training of airframe and powerplant mechanics. The school will utilize an
executive hanger at Drake Field.
City Council is requested to accept the grant award, approve an agreement with the Northwest
Arkansas Aviation Technologies Center, and approve a budget adjustment recognizing the grant
revenue and establishing an expenditure budget for the grant expenses.
RR ECON DEVLPMT COMMSN Fax:501-682-7499 Jan 26 '99 11)20 P.O1
411 •
ECONOMIC INFRASTRUCTURE FUND GRANT PROGRAM
GRANT AGREEMENT
PART I
Signatory Page
Grantee: City of Fayetteville Grant Control: #ETF 9810
Grant Amount: 51,800,000 Activity Type: Training
GRANTOR. GRANTEE
Arkansas Department of Economic Development
#1 Capitol Mall, Room 4B206
Little Rock.. Arkansas 72201
Phone: (501) 682-1211
Name: City of Fayetteville
Address. 113 W. Mountain
Fayetteville, AR 72701
County: Washington
Phone: (501) 521-7700
This Grant Agreement, is entered into by the Arkansas Department of Economic Development,
Grantor, and the City of Fayetteville, Grantee, for the purpose of providing funds to Grantee to
undertake public works projects which support private sector job creation opportumties pursuant
to Act 506 of 1997 and its successors. The Grantee agrees to initiate and complete a public
works project in accordance with the terms of this Grant Agreement.
2. The Grantee further warrants it will conduct and administer the grant in accordance with this
Agreement and all applicable State laws and regulations.
ARICANSAS DEPARTMENT OF ECONOMIC CITY OF FAYETTEVILLE
DEVELOPMENT
BY:
Signature
Barbara I. Pardue
Name
Executive Director
Title
Date
DN:dh
Grantee
BY:
Signii,"
Fred Hanna
Name
Mayor of Fayetteville
Title
)f y,
Date
Vim
Aatets
RR ECON DEVLPMT COMMSN Fax:501-'582-7499 • Jan 26 '99 11%20 P.02
PART II - GRANSGREEMENT GGE ERAL RMS AND
CONDITION
In consideration of the general terms and conditions hereinafter contained, the Grantor and the Grantee
agree as follows:
1. COMPENSATION AND METHOD OF PAYMENT. The Grantor will utilize a grant
request for payment procedure and will authorize the Grantee to draw up to SI4800,000
against a Grant Award through the State Treasury, consistent with all fiscal requirements
stipulated herein. The Grantee may request and receive authorized grant funds by
submitting appropriate forms and documentation, subject to approval by the Grantor, for
payments of allowable expenses incurred by the Grantee while undertaking approved
project activities in accordance with this Grant Agreement. These expenses must be
Identified by line item categories, which correspond to the line item categories on this Grant
Agreement's Scope of Work -Budget. Requisitions will be mailed to the Grantor, and the
Grantor will review and approve the requisitions before issuing Payment to the Grantee.
It is expressly understood that Grantor will honor requests for payment and disburse funds
only to the extent that funds have been released to Grantor therefore, consistent with the
requirements of the General Accounting and Budgetary Procedures Law, the Revenue
Stabilization Law and any other applicable fiscal control laws and regulations promulgated
by the Department of Finance and Administration.
2. LEGAL AUTHORITY. By signing the Grant Agreement Document's Signatory Sheet,
the Grantee certifies that it possesses legal authority to accept grant funds and to execute
the project described in this Grant Agreement. This act of signing will also certify that the
Grantee will comply with
all parts of this Agreement.
3 WAIVERS. No conditions or provisions of this Grant Agreement may be waived unless
approved by the Grantor, in writing.
4. ASSIGNABILITY. The Grantee will not assign any interest in this Grant Agreement and
will not transfer any interest in the same (whether by assignment or novation).
5. SPECIAL CONDITIONS. The Grantee will comply with all special conditions and
attachments incorporated herein to this grant award. Compliance approval and clearance of
special conditions will be given by the Grantor in wnting after receipt and review of
evidence of compliance from the Grantee. Official notification of a special condition and
the Grantor's approval and/or clearance of special conditions must be retained by the
Grantee in its files.
FINANCIAL MANAGEMENT AND ACCOUNTLNG. The Grantee will establish and
maintain a financial management and accounting system, which conforms to generally
accept accounting principles and complies with all applicable State requirements.
ALLOWABLE COSTS. All costs necessary to carry out the eligible activities in the
project must be consistent with and not exceed the limitations imposed by special
conditions, scope of work and budget.
AMENDMENTS AND MODIFICATIONS. The Grantor will consider project
amendments if they are necessitated by act ons beyond the control of a Grantee. The
Grantee may request or the Grantor may require an amendment or modification of the
Grant Agreement. However, such amendment or modification will not take effect until
approved, in writing, by the Grantor. The Grantee must sign and return the amendment to
ADED within three days. The Grantee must request prior approval for all amendments or
modifications. Amendments will not be approved which would materially alter the
circumstances under which the grant was onginally funded.
2
. AR EcON DEVLPMT cOMMSN Fax:501-632-7499 Jan 26 '99 11."21 P.03
9.
RECORD KEEPING. The Grantee agrees to keep such records as the Grantor may
require. All such records, and other records pertinent to the gant and work undertaken as
part of the project, will be retained by the Grantee for a period of three years after the final
audit of the program.
10. ACCESS 12 RECORDS The Grantor and duly authorized officials of the State will
have full access and the right to examine any pertinent documents, papers, records, and
books of the Grantee and of persons or organizanons with which the Grantee may contract,
which involve transactions related to this Grant Agreement. The Grantee's contract with
other persons or organizations must specifically provide for the Grantor's access to
documents as provided herein.
11. REPORTS. The Grantee, at such times and in such forms as the Grantor may require, will
furnish the Grantor with such periodic reports as It may request pertaining to the activities
undertaken pursuant to this Grant Agreement, the costs and obligations incurred in
connection therewith, and any other matters covered by this Grant Agreement.
12. OBLIGATIONS REGARDING THIRD PARTY RELATIONSHIPS. The Grantee
will remain fully obligated under the provisions of the Grant Agreement notwithstanding its
designation of any third party or parties for the undertaking of all or any part of the project
described herein. Any subcontractor who is not the Grantee will comply with all lawful
requirements of the Grantee necessary to ensure that the project is carried out in accordance
with the provisions of this Grant Agreement. Failure to comply will result in sanction upon
Grantee, Administrator, Engineer/Architect or Sub Contractor. This sanction will result in
ADED not working with said persons, for a period of not less than one year or more than
five years and/or a suspension of existing funding.
The Grantee shall secure all such services in accordance with applicable State law and the
provisions of this Grant Agreement, and shall notify the Grantor, in writing, of the method
utilized to secure services, the name and address of the service provider(s), the scope of
work anticipated and the terms of compensation.
13. CONFLICT OF INTEREST. No officer or employee of the Grantor, no member, officer,
or employee of the Grantee or its designces or agents, no member of the governing body of
the jurisdicuon in which the project is undertaken or located and no other official of such
locality or localities who exercises any functions or responsibilities with respect to the
project during his tenure, will have any personal or pecuniary gain or interest, direct or
indirect, in any contract or subcontract, or the proceeds thereof for work to be performed
m connection with the project assisted under this agreement. The Grantee will incorporate,
or cause to incorporate, in all such contracts or subcontracts a provision prohibiting such
interest pursuant to the purpose of this provision. The Grantor reserves the right to waive
certain provisions of this clause in the event of a situauon once justified as unavoidable by
the Grantee, and approved by the Grantor which necessitates such a waiver.
14. POLITICAL ACTWITY. No portion of the funds provided hereunder will be used for
any part san political activity or to further the election or defeat of any candidate for public
office or influence the approval or defeat of any ballot issue.
15. NOTICES. The Grantee will comply with all public notices or notices to individuals
required by applicable State laws.
16. PROHIBITION AGALNST PAYMENTS fa )3ONUS OR COMMISSION. The
assistance provided under this Grant Agreement will not be used in payment of any bonus
or commission for the purpose of obtaining approval of the application for such assistance
or any other approval or concurrence under this Grant Agreement.
3
RR EGON DEVLPMT COMMSN Fax :501-682-749 • Jan 26 '99 11:22 P.04
17. TERMINATION BY MUTUAL AGREEMENT. This Grant Agreement may be
terminated, in whole or in part, pnor to the completion of project activities when the
Grantor determines that continuation is not feasible or would not produce beneficial results
commensurate with the further expenditure of funds. The Grantee will not incur new
obligations for the terminated portion after the effective date, and will cancel as many
outstanding obligations as possible. The Grantor will make funds available to the Grantee
to pay for allowable expenses incurred before the effective date of termination.
18. TERMINATION FOR CAUSE. If the Grantee fails to comply with the terms of the
Grant Agreement, or fails to use the grant for only those purposes set forth herein, the
Grantor may.:
(a) Suspend Grant Payments - After notice to the Grantee, suspend the grant and
withhold any further payment or prohibit the Grantee from incurring additional
obligations of grant funds, pending corrective action by the Grantee or a decision to
terminate by the Grantor.
(b) Terminate in toto - Terminate the grant in whole. or in part at any time before the
final grant payment is made.
The Grantor will promptly notify the Grantee in writing of its determination to terminate,
the reason for such termination, and the effective date of the termination.
Payments made to the Grantee or recoveries by the Grantor will be in accordance with the
legal rights and liabilities of the parties.
19. RECOVERY OF FUNDS. In the event of a default or violation of the terms of the Grant
Agreement by the Grantee, the Grantor may institute actions to recover all or part of the
proper funds paid to the Grantee.
20. DISPUTES. Except as otherwise provided in this agreement, any dispute concerting a
question of fact arising under this agreement which is not disposed of by provision of the
Grant Agreement, will be decided by the Grantor which will reduce its decision to writing
and mail or otherwise famish a copy thereof to the Grantee The decision of the Grantor
will be final and conclusive. This does not preclude the considerauon of questions of law in
connection with decisions provided for in the preceding paragraph; provided that nothing in
this Grant Agreement will be construed as making final the decision of any administrative
official, representative or board on a question of law.
21. INDEMNIFICATION. The Grantee will defend, protect, and save harmless the Grantor
from and against all claims, suits, and actions arising from any act or omission of the
Grantee or any employee or agents of either in the performance of this Grant Agreement.
However, this clause shall not be construed to waive A.C.A. § 21-9-301 (1991 Supp.).
22. SEVERABILITY. If any provision under this Grant Agreement or its application to any
person or circumstances is held invalid by any court of competent jurisdiction, this invalidity
does not affect other provisions of the Grant Agreement which can be given effect without
the invalid provision.
23. PERFORMANCE. The Grantor's failure to insist upon the strict performance of any
provision of this contract or to exercise any right based upon breach thereof or the
acceptance of any performance during such breach, will not constitute a waiver of any nghts
under this Grant Agreement.
4
AR ECON DEVLPMT COMMSN Fax 501-b82-7496 Jan 26 '9S 11:23 P.05
24. ENFORCEMENII'.Uthe Grantor determines that a Grantee'sserformance fails to meet
the terms and conditions of its Grant Agreement, several courses of action may be pursued
in order to resolve the problem. The Grantor may take any of the following actions,
severally or in combination:
(a) Request additional information from the Grantee to verify the nature of inadequate
performance;
(b) Conduct a site visit to examine pertinent records and recommend remedial cause of
action;
(c) Issue a letter of warning, advising the Grantee of the deficiency, recommendations
for corrections, date by which performance must be corrected and notice that more
serious sanctions may be imposed if the situauon continues or is repeated;
(d) Suspend funding of questioned activities until remedies are effected;
(e) Establish sanctions upon Grantee, Administrator, Engineer/Architect or Sub
Contractor. This sanction will be for a period of not less than one year but not more
than five years. Require reimbursement of funds improperly spent; or
(f) Refer the marter to the Attorney General of Arkansas with a recommendation that a
civil action be instituted.
25. AUDIT. The Grantee will be responsible for the conduct of a financial and compliance
audit within a reasonable period after completion of project activities. Such audit must be
performed by a certified public accountant whose services are secured through open,
competitive bidding process or during the course of an audit conducted by staff of the
Legislative Joint Audit Committee. The Grantor reserves the right to recover any unspent
or questioned balance of grant fiords, if any, from the Grantee after final audit.
26. CLOSE-OUT. The Grantor will advise the Grantee to initiate close-out procedures when
the Grantor determines, in consultation with the Grantee, that there are no impediments to
close-out and that the following criteria have been met or soon will be met:
(a) All costs to be paid with grant funds have been incurred with the exception of any
unsettled third party claims against the Grantee. Costs are incurred when goods and
services are received and/or contract work is performed;
(b) The last required progress report have been submitted. The Grantee's failure to
submit or update will not preclude the Grantor from effecting close-out if it is
deemed to be in the State's interest. Any excess grant amount which may be in the
Grantee's possession will be returned in the event of the Grantee's failure to furnish
or update the report; and
Other responsibilities of the Grantee under this Grant Agreement and any close-out
agreement, and applicable laws and regulations appear to have been carried out
satisfactorily or there is no further State interest in keeping the grant open for the
purpose of securing performance.
27. The Grantee agrees, as a condition of receiving grant assistance to abide by and adhere to
any policy directives, rules, regulations or other requirements which may be issued from
time to time by the Grantor, and which in the opinion of the Grantor are necessary to
efficient or legal execution of the project.
28. The Grantee agrees to see that all work is performed and completed in a manner consistent
with timelines established at the Grants inception. Failure to meet these timelines without
acceptable justification may result in sanction and or deobligation of funding to Grantee
and/or Sub Contractors.
(c)
5
RR EON DEVLPMT COMMSN Fax:501-682-7499 1 Jan 26 '99 11:23
P. 06
• •
PART III SCOPE OF WORK, SPECIAL CONDITIONS,
BUDGET, AND PROJECT SCHEDULE
Grantee: City of Fayetteville
Control #: ETF 9810
SECTION - SCOPE OF WORK
Amendment # N/A
.Amendment Date N/A
The project described more fully herein, consists of a grant to the Grantee for the purpose of providing
the initial start-up financing to establish the Northwest Arkansas Aviation Technologies Center
("NWAATC") at Drake Field in Fayetteville. The NWAATC will utilize the grant funds to establish an
Aviation Maintenance Technology Program, which will be certified under the Federal Aviation
Administration (FAA) - Regulation 147 (see Exhibit A) for training of airframe and powerplant
mechanics (A&P) The location of the NWAATC is shown on the project map, which is attached
hereto and incorporated herein by reference.
Northwest Arkansas Aviation Technologies Center NWAATC)
The NWAATC is a new private non-profit corporation established to develop and implement a broadly
based workforce development program which has. as its focus, the teaching of highly technical skills
required by the FAA for cerufication of people to work on aircraft.
The Grantee will provide the EIF grant funds to the NWAATC to establish an Aviation Maintenance
Technology Program (A&P) at Drake Field in Fayetteville. The NWAATC will be responsible for
expending grant funds consistent with grant budget and providing any and all financial and program
reporting required by the Grantee and Grantor. The NWAATC will provide an audit of any grants
funds received on an annual basis until all funds are expended.
The three-phase curriculum, consisting of 1,960 hours of instruction, is designed to provide graduates
with hi technical skills required by the aviation and aerospace industry, but such skills are widely
applicable to all industries.
The first general phase provides students with training in mathematics, physics, electricity, fluids,
corrosion control, materials and processes. The second airframe phase teaches sheet metal and
structures, finishes, welding, rigging, gear systems, hydraulic and pneumatic power systems, atmosphere
control, electronics and instruments, commurucation and navigation systems, fuel systems and fire
protection systems. The third phase powerplant curriculum provides technical instruction in powerplant
theory and maintenance, including instruments, fire protection, electrical systems, lubrication systems,
ignition and starting systems, induction and airflow systems, fuel systems, cooling systems, and exhaust
systems.
The NWAATC is designed to accommodate 150 students. Course work is expected to last 15 months
for day sessions and 18 months for night sessions.
Job Creation
Ozark Aircraft Systems (OAS) — Aircraft Engineering and Modification Center at the new Northwest
Arkansas Regional Airport began operations in late 1998 and has identified a need for 110 employees
initially. Ninety (90) of these employees will work in the areas of electrical and sheetmetal fabncation
and installation. OAS expects a 20% increase in staff per year and reach total employment of 500
within three years and 1,200 within eight years.
6