HomeMy WebLinkAbout59-99 RESOLUTION•
RESOLUTION NO 59-99
A RESOLUTION APPROVING A LEASE MODIFICATION WITH
AIR HOST, INC. TO CANCEL THE LEASE FOR OPERATION
OF THE DELI AND GIFT SHOP AT DRAKE FIELD.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE,
ARKANSAS:
Section I That the City Council hereby approves a lease modification with Air Host,
Inc. to cancel thc lease for operation of the deli and gift shop at Drake Field. A copy of the lease
modification is attached hereto marked Exhibit "A" and made a part hereof.
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PASSED AND APPROVED this 4th day of May , 1999.
. t ft,
p,\
• \
APPROVED:
et
By. d11/4
• • /
Fr Hanna, Mayor
Heather Woodruff, City erk
•
• •
FAYETTEVILLE
THE CITY OF FAYETTEVILLE. ARKANSAS
DEPARTMENTAL CORRESPONDENCE
To: Dale Frederick, Airport Manager
From: Heather Woodruff, City Clerk
Date: May 24, 1999
Attached is a copy of the resolution approving a lease modification with Air Host. The original
will be microfilmed and filed with the city clerk.
cc. Internal Auditor
file
STAFF REVIEW FORM
X AGENDA REQUEST
X CONTRACT REVIEW
GRANT REVIEW
For the Fayetteville City Council meeting of May LI, 1999
FROM:
Dale Frederick Airport General Gvmt.
Name Division Department
ACTION REQUIRED: Request approval of a Modification to a Lease with Air Host, Inc. This modification provides
for the cancellation of their lease to operate the Deli and Gift Shop in the Drake Field terminal building. Air Host has
requested the cancellation as their customer volume has decreased with the relocation of four of the five airlines to another
airport.
COST 10 CITY:
$ N/A
Cost of this Request
5550 0955 4458 00
Account Number
N/A
Project Number
N/A
Category/Project Budget
N/A
Funds used to date
N/A
Remaining Balance
BUD ET EVIEW:
Btidgc Coordinator
Budgeted Item
N/A
Category/Project Name
N/A
Program Name
Airport
Fund
Administrative Services Director
Budget Adjustment
CONTRACT/GRANT/LEASE REVIEW:
ft/ n n frSzt. rki /./ g V6 -q9
Ace/Conlin Ma er Date
2., 7Th
AVtomey t, Date
Date
Purchasing Officer
GRANTING AGENCY:
Czordinato
tet -177 0
mal Auditor
t6; r
STAFF RECOMMENDATION:
Staff recommends approval of the Lease Agreement.
Division llead
Adpiisfrz. $crvices Director
1
CAO
hAAMOM
9
11
ate
Cross Reference
New Item. Yes
Prev. Ord/Res#: Res. 1/I26-93
Orig Cont. Date: Dec. 7 1993
No
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MODIFICATION OF LEASE AGREEMENT
AIR HOST FAYETTEVILLE, INC.
This AGREEMENT is made this day of ___73figt 1999, by and between
the City of Fayetteville, Arkansas, hereinafter called "Lessor" and Ai ost Fayetteville, Inc.,
hereinafter called "Concessionaire".
WHEREAS, Lessor and Concessionaire entered into a Lease Agreement dated December
7, 1993, hereinafter called "Lease"; and,
WHEREAS, commercial air service at Drake Field has been significantly diminished by
the relocation of four of the five air carriers to another airport; and,
WHEREAS, the loss of said air service has resulted in a severe reduction in the number
of customers using the airport concessions; and,
WHEREAS, the parties desire to modify the aforesaid Lease Agreement.
NOW, THEREFORE, THE PARTIES MUTUALLY AGREE AS FOLLOWS:
The Lease Agreement shall expire immediately upon the execution of this Modification
of Lease Agreement.
IN WITNESS WHEREOF, the parties have executed this Modification of Lease
Agreement on the day and year first above written.
CITY OF FAYETTEVILLE, ARKANSAS
ATTEST:
42osr.2/
Heather Woodruff, City Oftofk
ATTEST:
By:
Title:
By:
.44(/A4-hou--
F ed Hanna, Mayor
AIR HOST FAYETTEVILLE, INC.
By.
Title:
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STAFF REVIEW FORM Page 2
Description: Meeting Date: May 4, 1999
Modification to Air Host, Inc. Lease
Comments:
Budget Coordinator Reference Comments:
Accounting Manager Reference Comments:
City Attorney Reference Comments:
Purchasing Officer Reference Comments:
ADA Coordinator Reference Comments:
Internal Auditor Reference Commcnts:
•
Z--4 S1-97
STAFF REVIEW FORM
X AGENDA REQUEST
X CONTRACT REVIEW
GRANT REVIEW
For the Fayetteville City Council meeting of May 4, 1999
MICROFITILMEICI
FROM:
Dale Frederick Airport General Gvmt.
Name
Division Department
ACTION REQUIRED: Request approval of a Modification to a Lease with Air Host, Inc. This modification provides
for the cancellation of their lease to operate the Deli and Gift Shop in the Drake Field terminal building. Air Host has
requested the cancellation as their customer volume has decreased with the relocation of four of the five airlines to another
airport.
COST TO CITY:
$ N/A
Cost of this Request
5550 0955 4458 00
Account Number
N/A
Project Number
N/A
Category/Project Budget
N/A
Funds used to date
N/A
Remaining Balance
N/A
Category/Project Name
N/A
Program Name
Airport
Fund
BUDGET VIEW:
BiJdgt Coordinator
Budgeted Item
Administrative Services Director
Budget Adjustment
CONTRACT/GRANT/LEASE
.
Acc
f
Amttorney
REVIEW:
16v -99
Date
"
Date
4— IC2 R cl
Date
Purchasing Officer
GRANTING AGENCY:
mal Auditor
L2
Date
STAFF RECOMMENDATION: Staff recommends approval of the Lease Agreement.
Agaie ciAtelauLt_ s
Division Hcad
Ad
•
r cto
.
• . if1 ervices Director
M or
/17167/9
Date
Cross Reference
New Item: Yes
Prev. Ord/Res#: Res. #126-93
Orig Cont. Date: Dec. 7 1993
FAYETFEVILLE
INC CITY OF FAYETTEVILLE. ARKANSAS
DEPARTMENTAL CORRESPONDENCE
TO: FRED HANNA, MAYOR
FROM: DALE FREDERICK, AIRPORT MANAGER 49 r Elm
DATE: APRIL 16, 1999
SUBJECT: MODIFICATION TO AIR HOST, INC. LEASE
Air Host Inc., has requested to cancel their Deli and Gift Shop lease in the terminal due to the diminished sales
volume as four of the five airlines have relocated to another airport.
DF/Ip
Attachments: One original Lease Modification
Air Host letter to Frederick (3-31-99)
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March 31, 1999
Mr. Dale Frederick
Airport Manager
Fayetteville Drake Field Airport
4500 S. School Ave
Suite F
Fayetteville, Ali 72701
Dear Dale,
•
R tr:CEIVED
APR 1 5 1998
AIRPORT
As we discussed in our meeting several months ago, we have scaled back our operations
in hopes that we could remain viable in the difficult period following the relocation of
four of the airlines servicing Drake. Unfortunately, it has not worked. The US Air traffic
has not generated enough volume to keep us from incurring very large losses despite the
reduction in our hours of operation. There have been several days that we have had as
little as SIO in sales, and we haven't had a day m excess of $100 in sales February
losses were in excess of S17,000 and the loss we anticipate in March svill be almost as
large.
Dale, as you know we had hoped we could find a way to continue at Drake. You and
your staff are an outstanding group to work with. Together we feel that we met the
challenge of providing Northwest Arkansas passengers with an excellent level of
service. It is with great reluctance that I must request that we be allowed to discontinue
service at Drake effective May 1,1999 and cancel our respective obligations under the
lease agreement between the City and Air Host Fayetteville, Inc.
1 know I speak for everyone at Air Host when I say how much we have enjoyed working
with you, your staff and the City over the last eight years. if there is ever anything we
can do to help in any way, please don't hesitate to call. I plan to continue to stay in touch
when I visit the area.
cerely,
A_ John Simank
Executive Vice President
AJS/ajs
1355 Lynntleld Road, Suite 205/ Memphis, TN 38119-6883 / Phone 901-767-3463
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MODIFICATION OF LEASE AGREEMENT
AIR HOST FAYETTEVILLE, INC.
This AGREEMENT is made this day of , 1999, by and between
the City of Fayetteville, Arkansas, hereinafter called "Lessor" and Air Host Fayetteville, Inc.,
hereinafter called "Concessionaire'.
WHEREAS, Lessor and Concessionaire entered into a Lease Agreement dated December
7, 1993, hereinafter called "Lease"; and,
WHEREAS, commercial air service at Drake Field has been significantly diminished by
the relocation of four of the five air carriers to another airport; and,
WHEREAS, the loss of said air service has resulted in a severe reduction in thc number
of customers using the airport concessions; and,
WHEREAS, the parties desire to modify the aforesaid Lease Agreement.
NOW, THEREFORE, THE PARTIES MUTUALLY AGREE AS FOLLOWS:
The Lease Agreement shall expirc immediately upon the execution of this Modification
of Lease Agreement.
IN WITNESS WHEREOF, the parties have executed this Modification of Lease
Agreement on the day and year first above written.
ATTEST:
By
Heather Woodruff, City Clerk
ATTEST:
By.
Title:
CITY OF FAYETTEVILLE, ARKANSAS
By.
Fred Hanna, Mayor
AIR HOST FAYETTEVILLE, INC.
By:
Title: