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HomeMy WebLinkAbout96-01 RESOLUTIONRESOLUTION NO. 96-01 AN RESOLUTION AUTHORIZING THE MAYOR AND THE CITY CLERK TO EXECUTE A LEASE AGREEMENT WITH DHL WORLDWIDE EXPRESS, INC. TO RENT THE PROPERTY AT 4140 S. SCHOOL AVENUE AT DRAKE FIELD BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council hereby authorizes the Mayor and the City Clerk to execute a Lease Agreement with DHL Worldwide Express, Inc. to rent the property at 4140 S. School Avenue at Drake Field. A copy of the Lease Agreement, marked Exhibit "A" is attached hereto, and made a part hereof. PASSED AND APPROVED this 3rd day of July, 2001. ATTEST: By. fs 49rncu/.� eather Woodruff, City Clef APPROVED: By: b414 DAN COODY, Mayor • • EXHIBIT A LEASE between the City of Fayetteville, Arkansas and DHL Worldwide Express, Inc. This LEASE is executed thisday of / 20 0/ by and between the City of Fayetteville Arkan 113 W. unt ' t., Fayetteville, AR, 72701, hereinafter called "Lessor" and DHL Worldwide Express, Inc. a Delaware Corporation, hereinafter called "Lessee." 1. Leased Premises. Lessor leases to Lessee, and Lessee leases from Lessor, the property at 4140 S. School Avenue containing approximately 799.25 square feet of office space and 1,179.99 square feet of garage/storage area, located on the premises of the Fayetteville Municipal Airport - Drake Field, hereinafter called "Airport", as reflected on Exhibit "A' attached hereto and made a part hereof. 2. Term of Lease. The term of this Lease shall be: A. Initial Term. A period of two (2) years commencing on the date of this Lease, ,04,414# / , 2001 and expiring at midnight on &jam� //ice / 2003 unless otherwise terminated, canceled or extended as set forth herein b bow. B. Option to Extend. Lessee shall have the option to extend the Lease Term for five (5) consecutive one (I) year terms, under the same terms and conditions of this Lease, provided: (1) Lessee has complied with and performed all conditions, covenants, and terms of this Lease without any uncorrected defaults if known to Lessee, or any defaults that are not otherwise in the process of being resolved in the manner provided in this Lease. (2) Notice of Lessee's intent to renew has been made in writing to Lessor at least thirty (30) days pnor to the expiration of the term. 3. Rental Charges. A. Initial Term During the initial term of this lease, Lessee agrees to pay Lessor for the use of the Leased Premises the sum of $ 175.00 per month. However, should the lease term begin on a day other than the first day of the calendar month, or should the lease end on a day other than the last day of the calendar month, such partial month lease payment shall be a prorated share of the monthly lease payment. The initial lease payment is due and payable upon execution of this lease, and all subsequent monthly lease payments shall be due and payable in advance on or before the first day of the calendar month thereafter. A delinquency charge will be imposed on all payments not received by the close of business on the tenth day after the due date except that one (1) grace period in the first year of the Lease shall be allowed. The grace period m X 2 03 E • • is allowed for the purpose of establishing the payment schedule and accustoming the tenant to the payment schedule. Such delinquency charge shall be the maximum amount allowable under Arkansas law. Nonpayment of rent for a period of three (3) months shall be considered an event of default. All payments shall be delivered to: Fayetteville Municipal Airport, 4500 S. School Ave., Suite F, Fayetteville, AR 72701. 13. Extended Term. The schedule of Rental Charges for the remaining five (5) option years shall be as follows: (1) (2) (3) (4) (5) Year 3 Year 4 Year 5 Year 6 Year 7 $225/month $300/month $425/month $550/month $550/month 4. Insurance and Indemnity. Lessee shall maintain in force during the Term, and any extended term, public liability and property damage insurance in comprehensive form as reasonably may be required by the Lessor and outlined in the Airport Minimum Standards. The Lessor shall be named as Additional Insured on the Lessee's insurance. Proof of insurance shall be provided to the Airport. Further, no material change or cancellation of the insurance shall be made without 30 days notice to the Airport. 5. Utilities and Janitorial Services. Lessee shall be responsible for the maintenance of all utility services to or on the Leased Premises except as otherwise stated m Section 6. F. This shall include any power, gas, telephone, electricity, heating, water, sewer, storm water and all other utility services not enumerated specifically. Lessee shall be responsible for installation, relocation and modification of all utility services to or on the Leased Premises if and only if it is required only by Lessee and related to its business. Lessee shall pay as the same become due, all utility and other charges incurred in the operation, maintenance, use, occupancy, repair and upkeep of the Leased Premises and the improvements located thereon. Lessee shall provide for and supply at its expense all janitorial service with respect to the Leased Premises. 6. Use and Maintenance of Leased Premises. Lessee shall have use of the Leased Premises as follows: A. Lessee agrees to observe and obey all ordinances, rules and regulations promulgated by Lessor with respect to use of the Airport and the Leased Premises; provided, however, such ordinances, rules and regulations shall be consistent with safety and with rules, regulations and orders of the Federal Aviation Administration with respect to aircraft operations at the Airport; and provide further, such rules and regulations shall not be inconsistent with the provisions of this lease or the procedures prescribed or approved from time to time by the Federal Aviation Administration with respect o the operations of Lessee at the Airport. Lessee shall be entitled only to use the Leased Premises for lawful purposes. Lessee agrees that it is understood that Lessee is not permitted to engage in aircraft maintenance activities of any nature in said space. Page 2 • • B. Subject to Federal Aviation Administration, hereinafter referred to as "FAA" and Airport Security and Airport Operational Rules, Airport Minimum Standards, Regulations and Procedures, Lessee shall be entitled to use, on a nonexclusive basis, public areas of the Airport and runways, taxiways, aprons, lighting navigation aids, and other facilities necessary for the operation of aircraft and activities related to Lessee's business. C. Lessee shall maintain Leased Premises in a clean and orderly condition and appearance, including all of the Lessor's fixtures, equipment and facilities and all Lessee's personal property. The Lessee shall not permit the accumulation of any rubbish, trash or other waste material on the Leased Premises. Lessee will arrange for their own trash dumpster for trash removal from the Leased Premises. Lessee shall be responsible for the lawn care, mowing and appearance of the outside grounds of the Leased Premises. D. Lessee shall not install any antennas or signs without prior consent of the Lessor. All signs shall be permitted through the City of Fayetteville. Lessee shall be responsible for expenses arise from the installation and/or removal of antennas, radio signal or receiving towers, signs or related facilities, including any damage to the roof or building as the result of installation and/or removal of same. E Lessee shall not dispose of any Hazardous Substances in Lessor's drains; and in the event that this provision is inadvertently violated by the Lessee, Lessee shall be responsible for any fines and clean-up, and shall indemnify and hold harmless the Lessor from claims related to the event. F. Lessee shall be responsible for the maintenance and normal operating condition of all heating, electrical and air conditioning equipment and intenor plumbing on the Leased Premises up to and including a maximum cost of $500.00 per year. Lessor shall be responsible only for major maintenance of the existing equipment. Major maintenance, as used herein, shall mean replacement of the heating and air conditioning units or compressor units when deemed necessary by the Lessor. Lessee shall be responsible for the maintenance of all doors and glass windows. 7. Reservation of Rights. A. Lessor reserves the right to take such action as may be necessary to protect the aerial approaches of the Airport, against obstruction in accordance with the applicable standards and/or requirements. B. Lessor also reserves for itself and its licensees, an avigation easement in, over and across the airspace above the Leased Premises and the unrestricted right to subject the Leased Premises to such Airport noise and vibration as may result from the flight of aircraft, warm up of engines, testing of motors and other aviation related activities. C. Lessee, its representatives, agents, invitees and hcensees, shall have the right of ingress and egress to and from the Leased Premises. Lessor reserves the right to close any means of ingress and egress, so long as other reasonable means of ingress and egress to the Leased Premises are available to Lessee. Page 3 • • D. Lessor may enter the Leased Premises at any reasonable time for any reasonable purpose necessary or incidental to the performance of its obligations hereunder. Notice of intent to enter will be given the Lessee except in emergencies. Lessor shall refrain from unreasonably interfering with Lessee's normal business operations and shall observe Lessee's security and safety rules. 8. Termination or Default. A. Lessor or Lessee may terminate this lease at any time by giving the other party ninety (90) days written notice of termination. B. At the expiration or termination of this Lease, Lessee agrees to surrender possession of the Leased Premises peacefully and promptly to the Lessor in as good condition as existed at the effective date of this Lease, normal wear and tear excepted. Lessee's rights to use of the Leased Premises shall cease. All fixtures, improvements, equipment, and other property installed, erected or placed by Lessee on the Leased Premises shall be deemed to be personalty and shall remain the property of Lessee. Lessee shall have the right at any time during the term of this Lease, to remove any or all of such property from the Airport, subject, however, to Lessee's obligation to repair all damages, if any, resulting from such removal Any and all property not removed by Lessee prior to the expiration of this lease shall thereupon become the property of Lessor and title thereto shall thereupon vested in Lessor, except properties belonging to customers of the Lessee, or Lessor may require removal and restoration by Lessee. C. Failure of the Lessee to abide by the terms of this lease shall be considered an event of default, which shall result in the termination of this Lease. 9. Indemnity. Lessee agrees to indemnify Lessor against all liability for injuries to persons or damage to property caused by Lessee's use or occupancy of the Leased Premises; provided, however, Lessee shall not be liable for any injury, damage, or loss occasioned by the negligence or willful misconduct of Lessor or its agents or employees including but not limited to hazardous substances. The Lessor shall give notice to Lessee of any such liability, loss, suit, claim or demand, and Lessee shall defend same using counsel reasonably acceptable to the Lessor. No word, sentence, paragraph or phrase shall be construed to waive that tort immunity as set forth under Arkansas Law. The provisions of this section shall survive the expiration or early termination of this Lease. 10. Assigning, Subletting and Encumbering. A. Lessee shall not at any time sublet the Leased Premises, nor permit other persons to occupy said Leased Premises or any part thereof, nor grant any license or concession for all or any part of said Leased Premises, or assign its rights under this Lease without the written consent of Lessor except to any affiliate, successor, or other bona fide member of the Lessee's corporation. Notice of any changes in responsibilities under this Lease shall be given to the Airport. No such subletting or assignment shall release Lessee from its obligations to pay the rental set forth herein. B. Notice as provided for herein shall be sufficient if sent by Certified Mail, postage prepaid, addressed as follows: Page 4 • • • • Notice to Lessor: Airport Manager's Office 4500 S. School Ave., Ste. F Fayetteville, AR 72701 501.718.7642 Notice of Lessee: (Copy to:) DHL Worldwide Express, Inc. ATTN: Corporate Real Estate DHL Legal Department 50 California Street 50 California Street Suite 500 Suite 500 San Francisco, CA 94111 San Francisco, CA 94111 415.677.6456 415.677.6145 451.677.7274 (fax) 451.986-6203 (fax) All covenants, conditions and provisions in this Lease shall extend to and bind the legal representatives, successors and assigns of the respective parties hereto. 11. Independent Contractor. This Lease shall not be deemed or construed to create any relationship or joint venture or partnership between the parties, to give the Lessor any interest in the business of Lessee, or to grant to Lessee any powers as an agent or representative of the City or Airport for any purpose or to bind the City or the Airport. Lessee shall be an independent contractor owning and operating its business as herein described. 12. Governmental Requirements A. Governmental Requirements - General Lessee shall comply with all Governmental Requirements applicable to Lessee's use and operation of the Leased Premises. Without limiting the generality of the foregoing, Lessee shall at all times use and occupy the Airport in strict accordance with all laws, rules, regulations, minimum standards, and security plans that may be imposed by the FAA, the Airport, the state, federal or city government with respect to the Airport and operations thereof, including but not limited to procuring all licenses, franchises, certificates, permits, and authorizations necessary to conduct business. B. No Liability for Exercise of Powers. The Lessor shall not be liable to Lessee for any diminution or deprivation of its rights which may result from the proper exercise of any power reserved to the Lessor in this Lease or by reason of governmental requirements; Lessee shall not be entitled to terminate this Lease by reason thereof, unless the exercise of such power shall interfere with Lessee's rights hereunder so as to constitute a termination of this Lease by operation of law. C. Nondiscrimination. Lessee, and its successors in interest, and assignees, as part of the consideration hereof, hereby do covenant and agree, as a covenant running with the land, that in Page 5 • • the event facilities are constructed, maintained or otherwise operated on property described in this Lease for a purpose for which a Department of Transportation program or activity is extended or for another purpose involving the provisions of similar services or benefits, Lessee shall remain and operate such facilities and service in compliance with all other requirements imposed pursuant to Title 49 CFR Part 21, Nondiscrimination in Federally -Assisted Programs of the Department of Transportation -Effectuation of Title VI of the Civil Rights Act of 1964, as said regulations may be amended. Lessee, and its successors in interest, and assignees, as a part of the consideration hereof, do covenant and agree hereby that: (1) no person shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination in the use of said facilities on the grounds of race, color, creed, national origin, sex or disability; (2) in the construction of any improvements on, over or under such land, and the furnishings of services thereon, no person shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination in the use of said facilities on the grounds of race, color, creed, national ongin, sex or disability; (3) Lessee shall be responsible for maintaining the Leased Premises and services in a manner which complies with the parties' respective obligations under 14 CFR Part 382, NONDISCRHvIINATION ON THE BASIS OF HANDICAP IN AIR TRAVEL, under the Uniform Federal Accessibility Standards (UFAS), or substantially equivalent standards; under 49 CFR part 27, NONDISCRIMINATION ON THE BASIS OF HANDICAP IN PROGRAMS AND ACTIVITIES RECEIVING OR BENEFITTING FROM FEDERAL FINANCIAL ASSISTANCE; and under 42 U.S.C.S. §§ 12101, et seq., THE AMERICANS WITH DISABILITIES ACT of 1990, or a substantially equivalent standard; and (4) Lessee will be responsible for any alterations and/or construction made during the initial lease period or any extensions or renewal within the leased space, which may be mandated by or necessary to meet the requirements of the statutes and regulations cited above and other relevant Federal, State or local laws, statutes and regulations cited above and other relevant Federal, State or local laws, statutes and ordinances that relate to disabled accessibility standards up to and including a maximum of $500.00 per year provided the improvement is mandated specifically due to the Lessees use with the Lessor being responsible for maintaining the building in compliance with the Americans with Disabilities Act. To the extent applicable, Lessee assures that it will undertake an Affirmative Action Program as required by 14 CFR Part 152, Subpart E to ensure that, on the grounds of race, color, creed, national origin or sex, no person shall be excluded from participating in any employment activities covered'in 14 CFR Part 152, Subpart E Lessee assures that it will require that its covered sub - organizations provide assurances to the Airport that they similarly will undertake Affirmative Action Programs and that they will require assurances from their sub -organizations as required by 14 CFR Part 152, Subpart E to this same effect. 13. Miscellaneous A. Severability In the event any provisions of this Lease shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof, unless such holding shall materially affect the rights of either party as set forth herein. Page 6 d • • • • B. Entire Lease: Modification. This Lease expresses the entire understanding of the Lessor and Lessee concerning the Leased Premises. Neither the Lessor nor Lessee has made or shall be bound by any Lease or any representation to the other concerning the Leased Premises or the subject matter hereof which is not set forth expressly in this Lease. This Lease may be modified only by a written Lease of subsequent date hereto signed by the Lessor and Lessee. C. Non -Waiver. Neither the waiver nor any forbearance of remedy by the Lessor of any breach of Lessee of any provision hereof shall operate as a waiver for any other breach by Lessee. D. Execution of Counterparts. This Lease simultaneously may be executed m several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. E Choice of Law. This Lease shall be construed and enforced in accordance with the laws of the State of Arkansas. F. Force Majeure. Neither the Lessor nor Lessee shall be deemed in violation of this Lease if it is prevented from performing any of the obligations hereunder by reason of embargoes, shortages of material, acts of God, acts of the public enemy, acts of superior governmental authority, weather conditions, floods, riots, rebellions, sabotage, or any other circumstances for which it is not responsible or which are not within its control, and the tune for performance automatically shall be extended by the period the party is prevented from performing its obligations hereunder. G. Binding Effect. This Lease shall be to the benefit of and shall be binding upon the Lessor, Lessee and their respective successors and assignees, if such assignment shall have been made in conformity with the provisions of this Lease. Page 7 • • • IN WITNESS WHEREOF, the parties have executed this Lease on the day and year first above wntten. ATTEST: By Ci Cler ATTEST: By 0 CITY OF FAYETTEVILLE, ARKANSAS Lessor By Mayor a5 A44 DHL WORLDWIDE EXPRESS, INC. Lessee//jj� j� By &A c_, M lc Title: 1 tirsa en_ 0 nr2- ° Title: L. t • Page 8 • NAME OF FILE• Resolution No. 96-01 • CROSS REFERENCE: 07/03/01 Resolution No. 96-01 07/03/01 Lease Agreement with DHL Worldwide Express, Inc. Special Provisions (Aon Aviation) 11/01/01 Addendum No. Schedule of Insurers 06/25/01 Certificate of Insurance 04/13/01 Certificate of Insurance 11/01/00 Comprehensive Airline Liability Policy until 11/01/01 06/26/01 Memo to Gary Dumas, Utility Services Director/Interim Airport Manager, from Dale Frederick, Airport Marketing, regarding DHL - Drake Field 06/26/01 DHL - Drake Field 05/22/01 Letter to Alett Little, Economic Development Director, from Dilip P. Yajnik, Project Manager, Hanscomb, regarding DHL lease 06/29/01 Memo to Gary Dumas, from James Nicholson, Financial Coordinator, regarding Fire Station Roof 06/28/01 Departmental Correspondence to Mayor and City Council from Gary Dumas regarding DHL Lease 05/02/01 Memo to Fayetteville City Council from Alett Little thru Staff Review Committee regarding DHL Lease Agreement 06/05/01 Staff Review Form 07/11/01 Departmental Correspondence to Gary Dumas from Heather Woodruff, City Clerk NOTES: • • • LEASE between the City of Fayetteville, Arkansas and DHL Worldwide Express, Inc. This LEASE is executed this day of / 20 0/ , by and between the City of Fayetteville Arkan , 113 W. untai t., Fayetteville, AR, 72701, hereinafter called "Lessor" and DHL Worldwide Express, Inc. a Delaware Corporation, hereinafter called "Lessee." 1. Leased Premises. Lessor leases to Lessee, and Lessee leases from Lessor, the property at 4140 S. School Avenue, containing approximately 799.25 square feet of office space and 1 -179.. -99 -square -feet ofgarage/storage-area-located-on-the-premises-o€the-Fayetteville-Municipal Airport - Drake Field, hereinafter called "Airport", as reflected on Exhibit "A' attached hereto and made a part hereof. 2. Term of Lease. The term of this Lease shall be: A. Initial Term. A period of two (2) years commencing on the date of this Lease, , 2001 and expiring at midnight on 2003 unless otherwise terminated, canceled or extended as set forth herein below. B. Option to Extend. Lessee shall have the option to extend the Lease Term for five (5) consecutive one (1) year terms, under the same terms and conditions of this Lease, provided: (1) Lessee has complied with and performed all conditions, covenants, and terms of this Lease without any uncorrected defaults if known to Lessee, or any defaults that are not otherwise in the process of being resolved in the manner provided in this Lease. (2) Notice of Lessee's intent to renew has been made in writing to Lessor at least thirty (30) days prior to the expiration of the term. 3. Rental Charges. A. Initial Term. During the initial term of this lease, Lessee agrees to pay Lessor for the use of the Leased Premises the sum of $ 175.00 per month. However, should the lease term begin on a day other than the first day of the calendar month, or should the lease end on a day other than the last day of the calendar month, such partial month lease payment shall be a prorated share of the monthly lease payment. The initial lease payment is due and payable upon execution of this lease, and all subsequent monthly lease payments shall be due and payable in advance on or before the first day of the calendar month thereafter. A delinquency charge will be imposed on all payments not received by the close of business on the tenth day after the due date except that one (1) grace period in the first year of the Lease shall be allowed The grace period • • is allowed for the purpose of establishing the payment schedule and accustoming the tenant to the payment schedule. Such delinquency charge shall be the maximum amount allowable under Arkansas law. Nonpayment of rent for a period of three (3) months shall be considered an event of default. All payments shall be delivered to: Fayetteville Municipal Airport, 4500 S. School Ave., Suite F, Fayetteville, AR 72701. B. Extended Term. The schedule of Rental Charges for the remaining five (5) option years shall be as follows: (1) Year 3 $225/month (2) Year 4 $300/month (3) Year 5 $425/month (4) Year 6 $550/month (5) Year 7 $550/month 4—Insurance-and-Indemnity—Lessee-shall-maintain-in-force-during-the-Term,-and-any extended term, public liability and property damage insurance in comprehensive form as reasonably may be required by the Lessor and outlined in the Airport Minimum Standards. The Lessor shall be named as Additional Insured on the Lessee's insurance. Proof of insurance shall be provided to the Airport. Further, no material change or cancellation of the insurance shall be made without 30 days notice to the Airport. 5. Utilities and Janitorial Services. Lessee shall be responsible for the maintenance of all utility services to or on the Leased Premises except as otherwise stated in Section 6. F. This shall include any power, gas, telephone, electricity, heating, water, sewer, storm water and all other utility services not enumerated specifically. Lessee shall be responsible for installation, relocation and modification of all utility services to or on the Leased Premises if and only if it is required only by Lessee and related to its business. Lessee shall pay as the same become due, all utility and other charges incurred in the operation, maintenance, use, occupancy, repair and upkeep of the Leased Premises and the improvements located thereon. Lessee shall provide for and supply at its expense all janitorial service with respect to the Leased Premises. 6. Use and Maintenance of Leased Premises. Lessee shall have use of the Leased Premises as follows: A. Lessee agrees to observe and obey all ordinances, rules and regulations promulgated by Lessor with respect to use of the Airport and the Leased Prenuses; provided, however, such ordinances, rules and regulations shall be consistent with safety and with rules, regulations and orders of the Federal Aviation Administration with respect to aircraft operations at the Airport; and provide further, such rules and regulations shall not be inconsistent with the provisions of this lease or the procedures prescribed or approved from time to time by the Federal Aviation Administration with respect o the operations of Lessee at the Airport. Lessee shall be entitled only to use the Leased Premises for lawful purposes. Lessee agrees that it is understood that Lessee is not permitted to engage in aircraft maintenance activities of any nature in said space. Page 2 • • B. Subject to Federal Aviation Administration, hereinafter referred to as "FAA" and Airport Security and Airport Operational Rules, Airport Minimum Standards, Regulations and Procedures, Lessee shall be entitled to use, on a nonexclusive basis, public areas of the Airport and runways, taxiways, aprons, lighting navigation aids, and other facilities necessary for the operation of aircraft and activities related to Lessee's business. C. Lessee shall maintam Leased Premises in a clean and orderly condition and appearance, including all of the Lessor's fixtures, equipment and facilities and all Lessee's personal property. The Lessee shall not permit the accumulation of any rubbish, trash or other waste material on the Leased Premises. Lessee will arrange for their own trash dumpster for trash removal from the Leased Premises. Lessee shall be responsible for the lawn care, mowing and appearance of the outside grounds of the Leased Premises. D. Lessee shall not install any antennas or signs without prior consent of the Lessor. All signs-shall-be-permitted-through-the-City-of-Fayetteville—Lessee-shall-be-responsible-for-expenses arise from the installation and/or removal of antennas, radio signal or receiving towers, signs or related facilities, including any damage to the roof or building as the result of installation and/or removal of same. E. Lessee shall not dispose of any Hazardous Substances in Lessor's drains; and in the event that this provision is inadvertently violated by the Lessee, Lessee shall be responsible for any fines and clean-up, and shall indemnify and hold harmless the Lessor from claims related to the event. F. Lessee shall be responsible for the maintenance and normal operating condition of all heating, electrical and air conditioning equipment and interior plumbing on the Leased Premises up to and including a maximum cost of $500.00 per year. Lessor shall be responsible only for major maintenance of the existing equipment. Major maintenance, as used herein, shall mean replacement of the heating and air conditioning units or compressor units when deemed necessary by the Lessor. Lessee shall be responsible for the maintenance of all doors and glass windows. 7. Reservation of Rights. A. Lessor reserves the right to take such action as may be necessary to protect the aerial approaches of the Airport, against obstruction m accordance with the applicable standards and/or requirements. B. Lessor also reserves for itself and its licensees, an avigation easement in, over and across the airspace above the Leased Premises and the unrestricted right to subject the Leased Premises to such Airport noise and vibration as may result from the flight of aircraft, warm up of engines, testing of motors and other aviation related activities. C. Lessee, its representatives, agents, invitees and licensees, -shall have the -right of— ingress and egress to and from the Leased Premises. Lessor reserves the right to close any means of ingress and egress, so long as other reasonable means of ingress and egress to the Leased Premises are available to Lessee. Page 3 • • • • D. Lessor may enter the Leased Premises at any reasonable time for any reasonable purpose necessary or incidental to the performance of its obligations hereunder. Notice of intent to enter will be given the Lessee except in emergencies. Lessor shall refrain from unreasonably interfering with Lessee's normal business operations and shall observe Lessee's security and safety rules. 8. Termination or Default. A. Lessor or Lessee may terminate this lease at any time by giving the other party ninety (90) days written notice of termination. B. At the expiration or termination of this Lease, Lessee agrees to surrender possession of the Leased Premises peacefully and promptly to the Lessor in as good condition as existed at the effective date of this Lease, normal wear and tear excepted. Lessee's rights to use of the Leased-Premises-shall-calge—All-fixtures,-improvements,-equipment, and -other -property -installed, erected or placed by Lessee on the Leased Premises shall be deemed to be personalty and shall remain the property of Lessee. Lessee shall have the right at any time during the term of this Lease, to remove any or all of such property from the Airport, subject, however, to Lessee's obligation to repair all damages, if any, resulting from such removal Any and all property not removed by Lessee prior to the expiration of this lease shall thereupon become the property of Lessor and title thereto shall thereupon vested in Lessor, except properties belonging to customers of the Lessee, or Lessor may require removal and restoration by Lessee. C. Failure of the Lessee to abide by the terms of this lease shall be considered an event of default, which shall result in the termination of this Lease. 9. Indemnity. Lessee agrees to indemnify Lessor against all liability for injuries to persons or damage to property caused by Lessee's use or occupancy of the Leased Premises; provided, however, Lessee shall not be liable for any injury, damage, or loss occasioned by the negligence or wilful misconduct of Lessor or its agents or employees including but not limited to hazardous substances. The Lessor shall give notice to Lessee of any such liability, loss, suit, claim or demand, and Lessee shall defend same using counsel reasonably acceptable to the Lessor. No word, sentence, paragraph or phrase shall be construed to waive that tort immunity as set forth under Arkansas Law. The provisions of this section shall survive the expiration or early termination of this Lease. 10. Assigning. Subletting and Encumbenng. A. Lessee shall not at any time sublet the Leased Premises, nor permit other persons to occupy said Leased Premises or any part thereof, nor grant any license or concession for all or any part of said Leased Premises, or assign its rights under this Lease without the written consent of Lessor except to any affiliate, successor, or other bona fide member of the Lessee's corporation. Notice of any changes in responsibilities under this Lease shall be -given to the Airport— No -such subletting or assignment shall release Lessee from its obligations to pay the rental set forth herein. B. Notice as provided for herein shall be sufficient if sent by Certified Mail, postage prepaid, addressed as follows: Page 4 • Notice to Lessor: Airport Manager's Office 4500 S. School Ave., Ste. F Fayetteville, Alt 72701 501.718.7642 Notice of Lessee: (Copv to DHL Worldwide Express, Inc. ATTN: Corporate Real Estate 50 California Street Suite 500 San Francisco, CA 94111 415.677.6456 451.677.7274 (fax) DHL Legal Department 50 California Street Suite 500 San Francisco, CA 94111 415.677.6145 451.986-6203 (fax) • All covenants, conditions and provisions in this Lease shall extend to and bind the legal representatives, successors and assigns of the respective parties hereto. 11. Independent Contractor. This Lease shall not be deemed or construed to create any relationship or Joint venture or partnership between the parties, to give the Lessor any interest in the business of Lessee, or to grant to Lessee any powers as an agent or representative of the City or Airport for any purpose or to bind the City or the Airport. Lessee shall be an independent contractor owning and operating its business as herein described. 12. Governmental Requirements A. Governmental Requirements - General Lessee shall comply with all Governmental Requirements applicable to Lessee's use and operation of the Leased Premises. Without limiting the generality of the foregoing, Lessee shall at all times use and occupy the Airport in strict accordance with all laws, rules, regulations, minimum standards, and security plans that may be unposed by the FAA, the Au -port, the state, federal or city government with respect to the Airport and operations thereof, including but not limited to procuring all licenses, franchises, certificates, permits, and authorizations necessary to conduct business. B. No Liability for Exercise of Powers. The Lessor shall not be liable to Lessee for any diminution or deprivation of its rights which may result from the proper exercise of any power reserved to the Lessor in this Lease or by reason of governmental requirements; Lessee shall not be entitled to terminate this Lease by reason thereof, unless the exercise of such power shall interfere with Lessee's rights hereunder so as to constitute a termination of this Lease by operation of law. C. Nondiscnmination. Lessee, and -its successors in interest- and assignees, -as -part -of the consideration hereof hereby do covenant and agree, as a covenant running with the land, that in Page 5 • • • • the event facilities are constructed, maintamed or otherwise operated on property described in this Lease for a purpose for which a Department of Transportation program or activity is extended or for another purpose involving the provisions of similar services or benefits, Lessee shall remain and operate such facilities and service in compliance with all other requirements imposed pursuant to Title 49 CFR Part 21, Nondiscrimination in Federally -Assisted Programs of the Department of Transportation -Effectuation of Title VI of the Civil Rights Act of 1964, as said regulations may be amended. Lessee, and its successors in interest, and assignees, as a part of the consideration hereof, do covenant and agree hereby that: (1) no person shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination in the use of said facilities on the grounds of race, color, creed, national origin, sex or disability; (2) in the construction of any improvements on, over or under such land, and the furnishings of services thereon, no person shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination m the use o€said-facilities-on-the-grounds-o€race,-color,-creednational-ongin,rsex-or-disability;-(3)-Les e shall be responsible for maintaining the Leased Premises and services in a manner which complies with the parties' respective obligations under 14 CFR Part 382, NONDISCRIMINATION ON THE BASIS OF HANDICAP IN AIR TRAVEL, under the Untfonrt Federal Accessibility Standards (UFAS), or substantially equivalent standards; under 49 CFR part 27, NONDISCRIMINATION ON THE BASIS OF HANDICAP IN PROGRAMS AND ACTIVITIES RECEIVING OR BENEFITTING FROM FEDERAL FINANCIAL ASSISTANCE; and under 42 U.S.C.S. §§ 12101, et seq., THE AMERICANS WITH DISABILITIES ACT of 1990, or a substantially equivalent standard; and (4) Lessee will be responsible for any alterations and/or construction made during the initial lease period or any extensions or renewal within the leased space, which may be mandated by or necessary to meet the requirements of the statutes and regulations cited above and other relevant Federal, State or local laws, statutes and regulations cited above and other relevant Federal, State or local laws, statutes and ordinances that relate to disabled accessibility standards up to and including a maximum of $500.00 per year provided the improvement is mandated specifically due to the Lessees use with the Lessor being responsible for maintaining the building in compliance with the Americans with Disabilities Act. To the extent applicable, Lessee assures that it will undertake an Affirmative Action Program as required by 14 CFR Part 152, Subpart E to ensure that, on the grounds of race, color, creed, national origin or sex, no person shall be excluded from participating in any employment activities covered' in 14 CFR Part 152, Subpart E. Lessee assures that it will require that its covered sub - organizations provide assurances to the Airport that they similarly will undertake Affirmative Action Programs and that they will require assurances from their sub -organizations as required by 14 CFR Part 152, Subpart E to this same effect. 13. Miscellaneous A. Severability. In the event any provisions of this Lease shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof, unless such holding shall materially affect the rights of either party as set forth herein. Page 6 • • B. Entire Lease: Modification. This Lease expresses the entire understanding of the Lessor and Lessee concerning the Leased Premises. Neither the Lessor nor Lessee has made or shall be bound by any Lease or any representation to the other concerning the Leased Premises or the subject matter hereof which is not set forth expressly in this Lease. This Lease may be modified only by a written Lease of subsequent date hereto signed by the Lessor and Lessee. C. Non -Waiver. Neither the waiver nor any forbearance of remedy by the Lessor of any breach of Lessee of any provision hereof shall operate as a waiver for any other breach by Lessee. D. Execution of Counterparts. This Lease simultaneously may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. E. Choice of Law. This Lease shall be construed and enforced in accordance with the laws -of -the -State -of -Arkansas. F. Force Majeure. Neither the Lessor nor Lessee shall be deemed in violation of this Lease if it is prevented from performing any of the obligations hereunder by reason of embargoes, shortages of material, acts of God, acts of the public enemy, acts of superior governmental authority, weather conditions, floods, riots, rebellions, sabotage, or any other circumstances for which it is not responsible or which are not within its control, and the time for performance automatically shall be extended by the period the party is prevented from performing its obligations hereunder. G. Binding Effect. This Lease shall be to the benefit of and shall be binding upon the Lessor, Lessee and their respective successors and assignees, if such assignment shall have been made in conformity with the provisions of this Lease. Page 7 • • • • IN WITNESS WHEREOF, the parties have executed this Lease on the day and year first above written. ATTEST: Byr/yl ��tC Ci Cler CITY OF FAYETTEVILLE, ARKANSAS Lessor g Mayor By ATTEST: By 0 DHL WORLDWIDE EXPRESS, INC. Lessee By L� //JJ L _ ZL-7z/ c. ✓1 )/2.-A----• Title: t t v e { 0 c,. tea, Title• L. • Page 8 • • LEASE between the City of Fayetteville, Arkansas and DHL Worldwide Express, Inc. This LEASE is executed this day of , 20 , by and between the City of Fayetteville, Arkansas, 113 W. Mountain St., Fayetteville, AR, 72701, hereinafter called "Lessor" and DHL Worldwide Express. Inc. a Delaware Corporation, hereinafter called "Lessee." _ Cody_ 1. Leased Premises. Lessor leases to Lessee, and Lessee leases from Lessor, the property at 4140 S. School Avenue, containing approximately 799.25 square feet of office space and 1,179.99 square feet of staragelstorage area, located on the premises of the Fayetteville Municipal Airport - Drake Field, hereinafter called "Auport", as reflected on Exhibit "A" attached hereto and made a part hereof. 2. Term of Lease. The term of this Lease shall be: A. Initial Term, A period of two (2) years commencing on the date of this Lease, , 2001 and expinng at midnight on , 2003 unless otherwise terminated, canceled or extended as set forth herein below. B. Option to Extend. Lessee shall have the option to extend the Lease Term for five (5) consecutive one (1) year terms, under the same terms and conditions of this Lease, provided: (1) Lessee has complied with and performed all conditions, covenants, and terms of this Lease without any uncorrected defaults if known to Lessee, or any defaults that are not otherwise in the process of being resolved in the manner provided in this Lease. (2) Notice of Lessee's intent to renew has been made in writing to Lessor at least thirty (30) days prior to the expiration of the term. 3. Rental Charges. A. Initial Tenn. During the initial term of this lease, Lessee agrees to pay Lessor for the use of the Leased Premises the sum of $ 175.00 per month. However, should the lease tern begin on a day other than the fust day of the calendar month, or should the lease end on a day other than the last day of the calendar month, such partial month lease payment shall be a prorated share of the monthly lease payment. The initial lease payment is due and payable upon execution of this lease, and all subsequent monthly lease payments shall be due and payable in advance on or before the first day of the calendar month thereafter. A delinquency charge will be imposed on all payments not received by the close of business on the tenth day after the due date except that one (1) grace period in the first year of the Lease shall be allowed. The grace period • • is allowed for the purpose of establishing the payment schedule and accustoming the tenant to the payment schedule. Such delinquency charge shall be the maximum amount allowable under Arkansas law. Nonpayment of rent for a period of three (3) months shall be considered an event of default All payments shall be delivered to: Fayetteville Municipal Airport, 4500 S. School Ave., Suite F, Fayetteville, AR 72701. B Extended Term. The schedule of Rental Charges for the remaining five (5) option years shall be as follows: (1) Year 3 $225/month (2) Year 4 $300/month (3) Year 5 $425/month (4) Year 6 $550/month (5) Year 7 $550/month 4. Insurance and Indemnity. Lessee shall maintain in force during the Term, and any extended term, public liability and property damage insurance in comprehensive form as reasonably may be required by the Lessor and outlined in the Airport Minimum Standards. The Lessor shall be named as Additional Insured on the Lessee's insurance. Proof of insurance shall be provided to the Airport. Further, no material change or cancellation of the insurance shall be made without 30 days notice to the Airport. 5. Utilities and Janitorial Services. Lessee shall be responsible for the maintenance of all utility services to or on the Leased Premises except as otherwise stated in Section 6. F. This shall include any power, gas, telephone, electricity, heating, water, sewer, storm water and all other utihty services not enumerated specifically. Lessee shall be responsible for installation, relocation and modification of all utility services to or on the Leased Premises if and only if it is required only by Lessee and related to its business. Lessee shall pay as the same become due, all utility and other charges incurred in the operation, maintenance, use, occupy, repair and upkeep of the Leased Premises and the improvements located thereon. Lessee shall provide for and supply at its expense all janitorial service with respect to the Leased Premises. 6. Use and Maintenance of Leased Premises. Lessee shall have use of the Leased Premises as follows: A. Lessee agrees to observe and obey all ordinances, rules and regulations promulgated by Lessor with respect to use of the Airport and the Leased Premises; provided, however, such ordinances, rules and regulations shall be consistent with safety and with riles, regulations and orders of the Federal Aviation Administration with respect to aircraft operations at the Airport; and provide further, such rules and regulations shall not be inconsistent with the provisions of this lease or the procedures prescribed or approved from time to time by the Federal Aviation Administration with respect o the operations of Lessee at the Airport Lessee shall be entitled only to use the Leased Premises for lawful purposes. Lessee agrees that it is understood that Lessee is not permitted to engage in aircraft maintenance activities of any nature in said space. Page 2 1 aw 1 al : I• Administration,:1 • 1 I ;•• 1 p. * 'uJi ,tilf; ;I• •11:: :1111 1 r 1activities .1 • I. .1 ' 1: 1 1 \ I G 1 1 1 11:1 1 appearance,1 1! • I' :� 0 1 r 1 1 :s : 1 1 :. :' personal 1 •\' 1' �{' • lull w 1 ':I\ 1 1 1• 1 or1 1 1 1 :1 ' 1 :� �+ : • • •L r' 1 1 • : 1 1 • :1 ' iV n: :� I :� I ♦ I • , • y 1 : 1 14: .' I , • Y 1 'J 1 1 1 1 1" is `:1 ' 41 1 a: D. :: • i:' ♦ !� ' 111 I 1 • • �+ Y•J 1 I' I N I • • • w 1' w•• I • jj!1' fJL \ 1 1'• l• 1 1• F 1-• • al 1 1 • V !1 • 1• • 4.. V1 1 a: :1 w I n 1 1' 1 1 1• 1 •• • 1 1 1 1• 1ft MU!1 h 1 1 1 1 removal • n wnot1 1\ • I �: 1• 1' 1: I :� • 1 .liiI - :1 1• • l :!1 • Y :1 1 1 :: 1 :{•11 I 1 '.� : 1 is 1 : 1 l 1 1 1 'J 11 1 1 1 1 lharmless1 1 kt 1 1 : 11 :1 IJIJ 1" :111 X11 1 • 1 : • 1' •1 ! • 1 11 I. :wl �: 1conditioning :1 111 al I I 1 1 911L1.1 Leased ' I 1 1 1 1! . 1 I •' . $500.00 1' �: H • be :sr1 1 1 majorI1 alr • • YI • :1 11 P 1maintenance, SI :� ' :•: 1 1.1_I ft1 :111 I u 1- v 1 • :1 1 111 1. 1 1• II . 1 1 1 :� • 1 1- 1 1' :1•I'! 11 ll; 1 - 1: 1 -• 1 1.1 1 !! 1• 7. Reservation of Rights. :� • a: a :, 11 ' 1 . - " I r l . l 11 1 ' I : r Y+ 1 1 • : r a 1 1 • 1 :: • 1 1 v: • 1 1 rI 1 r• I: I • l . 1 I-. l l 1\ t't'L i :. 1 .1 :$". :. \ 1 1 wBl :a. : 1 :¼ 'l: 1 • I4: al :1 I 1 \ �I Y' 1'1 Y::1 ' i.. :�, :11 11 1 n1 M:1 • 1 1 :r J, LI I. 4 ' 1 :s I 1 :. ! 1 ::. 11 1 4 S : 1 . !1 • : I 1 1 • 'r: `:1 11 a: a. 1 w u :� I !J I ♦ : I 1ingress 1 "9 :. 1 long:' 1 I':reasonable 1 4: 1' 1 !1 :.' 1 :!J n' • I :s I •Lessee. D. Lessor may enter the Leased Premises at any reasonable time for any reasonable purpose necessary or incidental to the perfbrmance of its obligations hereunder. Notice of intent to enter will be given the Lessee except in emergencies. Lessor shall refrain from unreasonably interfering with Lessee's normal business operations and shall observe Lessee's security and safety rules. I uI 11 1 t Y. • A. Lessor or Lessee may terminate this lease at any time by giving the other party ninety (90) days written notice of termination. • 1 I • . :i li 1 • 1 F: :� .v : u ::s • • • Y: :1 ' w 1 V: 1.1 1 1 n I • :+ \ 1 ! \ \ 1 I 1 1 \ I • ` :1 effective1 . • 1 •- PJL \ 'r: 1 r%I :i Y:+I :1 r II Iii�: 1 1 :� 1 1 I :1 I I :I 1 other• 1 M :I • I. Y:1 1 :� I 4: :1 ' M :� I: 'I. deemed 1 1 I' • 1 'lJ:�ti 1 1 I L 1 �:- IJJ. Ii, I : 1right:1 1 II - , II ! 1 e 14 11 • 11 +: • :I 1 1 • 1 .1 111: 1.11 I' 11 • I.Y 1\' B ri \ 1 •l: 1 • 1 , 1 : 1 1 11 !.:J : 1resulting 1 1 II . :11 \ I'1 property Ii j II removed n V I • • 1 1 1: 1 1 1 \ :•: I: 1\ becomeproperty1 j. -4$ � • 1 1 I :I :' • 1: 1 :I : 1• KI :1 1 w• H 1 1 1 1 a 1 :� 1' \ •1 1 customers1 :< 1 •w' 1 11.: :1 PI 1 : I , :�V • :1 • 1 :� C. Faihrre of the Lessee to abide by the terms of this lease shall be considered an event of default, which shall result in the termination of this Lease. n 3" : !1 Y 1 u 1 a 11 :� ' 1 • `I 1 • H 1 1: • 1 illlti 1 • • 1 1 1 G Y'. .1 1 :. 1 • Y M 1 : \ :1 ' r :� 1 • 1 :1 • • 11 1 1 • • 1 !: • I I \ Y 1 ! 1 • 1 1 :1 1 1 v 1 v 1 w :�. • •1 1 1 •• • 1 " 1 demand, I I n':' 1 1 I '1 ' •flI L. !, • Y P• 1 1 mss 1 1 ❑ 1 Y' 1 •. LL •1 • 1 1 " 11' 1 V I :1 • • I 1 •: 1 I provisions• n '.I : " I all : io 1 :':it r ' '1l • I: liiltt:i iS1 VI 1 1:ii1! :� • 1 1 11 :' 1 : >: .1 • 11 :+ 1 \ permit1 1 " L:1 1 1 , jjittilJ ki ,IL i !hL1 I')ti;kIIiii •31 ,ii r ____ . I113 :•ss Y'l • ; 11 v YYi� 1 1 1 1 11 1 1 II II • i •) :C `:" • I • 1 1 I1 1 Y' 1 Ir: • : :. 1/ ! 1 1 1 :s 11 4 I �: L: 1' !1 • w 1 !• "! V I I I 1: �: 1. 1 1 !IA•I 1'ti,1 11 i • 1 1 • 1 :1 • 1 1 I ' V 111 • 1 1 11 1 11 :1 , • ' ' 1 • 1 1 1 • \ C Notice to Lessor: Airport Manager's Office 4500 S. School Ave., Ste. F Fayetteville, AR 72701 501.718.7642 Notice of Lessee: (Copy to:) DHL Worldwide Express, Inc. ATTN: Corporate Real Estate DHL Legal Department 50 California Street 50 California Street Suite 500 Suite 500 San Francisco, CA 94111 San Francisco, CA 94111 415.677.6456 415.677.6145 451.677.7274 (fax) 451.986-6203 (fax) All covenants, conditions and provisions in this Lease shall extend to and bind the legal representatives, successors and assigns of the respective parties hereto. 11. Independent Contractor. This Lease shall not be deemed or construed to create any relationship or joint venture or partnership between the parties, to give the Lessor any interest in the business of Lessee, or to grant to Lessee any powers as an agent or representative of the City or Airport for any purpose or to bind the City or the Airport. Lessee shall be an independent contractor owning and operating its business as herein described. [yp ti• 711 u,ai : 1; a un all 'I thu iUII .III ¶ . J I!.!.!'.'!jI..'L. I IiI, 4,h' I •'9IuF i1iip.I )? B. No Liability for Exercise of Powers. The Lessor shall not be liable to Lessee for any diminution or deprivation of its rights which may result from the proper exercise of any power reserved to the Lessor in this Lease or by reason of governmental requirements; Lessee shall not be entitled to terminate this Lease by reason thereof unless the exercise of such power shall interfere with Lessee's rights hereunder so as to constitute a termination of this Lease by operation of law. • « n • :. :i• ::.•J ru u ::: •: the event facilities are constnxted, maintained or otherwise operated on property described in this Lease for a purpose for which a Department of Transportation program or activity is extended or for another purpose involving the provisions of similar services or benefits, Lessee shall remain and operate such facilities and service in compliance with all other requirements imposed pursuant to Title 49 CFR Part 21, Nondiscrimination in Federally -Assisted Programs of the Department of Transportation -Effectuation of Title VI of the Civil Rights Act of 1964, as said regulations may be amended. I :V 1interest, 1; •i, : part• 1 I I 1 • 11 1 ll l 1 I -741 I- 141 • 1 I w 1: 1 1 1' :1 I,•$ l I \ • I • «: I • II• • I M 1 I _h \ 1 : Y • 1 w ::1 1 1 1 1 1 `J 1 B 1 11 1 1 YI 11 11 1I I1'Mt Ii 1 • 1' 11 %11 I- 10. \ _ :^ ::11 ,1 \' 1 1111 l: \w ••:111 1 ii.t ♦:l al 1 1 1 1' • I V 1 : .1 1 1 tat • 1" • : , facilities • , 1 '1 • , • r' • • ..1 1 1 IJ , !1 1 1 1 1 :< '1 1' wV"h,'I 1 IJ 1 ! I. Y: :1 •VI :� 11 rJIjj� 1 11:11' 1 1 1 :•. iii j i• 1 1 • «\ I I v: , 1 1'1 } • : / II M• I 1 I III 1 11 I:11: 1• '� 1• 1 :1 :111 : 1 iti1 1 • 1 / 1 •• I 11 / •I iii 1 1 / • 1 I 1 / 1 I 3! ♦ • 1 : �:1 I IM• i1�P' �V1 1 1IY 1 111 I • Y• 1 `�1 w, 1 1 IIC 1 1 1 1 •! 11 1•• .: 1jui1 '• 1 V/ 1 1 ' r: 1: ' ' 1 I 1.: 1' 1:I :1 I 1• 1j11t P11 PI • 1' 1 1 i! iJfI 1 « :1 IJ 1 1 • b" :t :L: \ V: I w 1 4• :11 • «I :1 1• 11 1 I: • '1 < lil • 1 L. I:Y:� 1 : 1 11 •: 1 :1 LYY:� ` 1 yM1i, 11 Iualnu l• 1 1 1' 1• 1: I :« I Y: I W4iJ:^ `1 •, ! :J 1 • 1 V I • 1 ' 1 1 • 11 r • I • r' • :V K • 1 B 1: 1 1 1 Y' 1 w I n 1.: •undertakeI I I 11 ' 1 I• 11 :1 1 I :1111: • VII ♦ ':1 1 • sin., • 1 1 :1 Y 1 : \ 1 1• Y 1 11. 1 1111 1 1:1 1 1 :1 :V\ :V•JI 1 I:1 :1 'Jij •: 11 I: 1. 1 1 1 1 VY:� • I 1 1: I Y 11 I tAI 11 1 IIj' 4 1 • ♦ !I 1 N : 1 1 1.: • 1 Y:� 1. 1 I: V 4 1 •I: 1 I: 1♦ 1 11 I ": 11�' 01 :w 13. Miscellaneous I w�' 1 1 1 \ • 1 11 1: :1 I Y1 1 1 " 1 11 1 11 • 1 1 1 1 1' 1 'll • �: 1 \ 1 1 1 111 9 1 1 1: :1 1 :� V MI l 1 1 11 1: 11 I 1 :i 1•: 1 iii 1 B. Entire Lease: Modification. This Lease expresses the entire understanding of the Lessor and Lessee concerning the Leased Premises. Neither the Lessor nor Lessee has made or shall be bound by any Lease or any representation to the other concerning the Leased Premises or the subject matter hereof which is not set forth expressly in this Lease. This Lease may be modified only by a written Lease of subsequent date hereto signed by the Lessor and Lessee. C. Non -Waiver. Neither the waiver nor any forbearance of remedy by the Lessor of any breach of Lessee of any provision hereof shall operate as a waiver for any other breach by Lessee. D. Execution of Counterparts. This Lease simultaneously may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. E. Choice of Law. This Lease shall be construed and enforced in accordance with the laws of the State of Arkansas. F. Force Majarre. Neither the Lessor nor Lessee shall be deemed in violation of this Lease if it is prevented from performing any of the obligations hereunder by reason of embargoes, shortages of material, acts of God, acts of the public enemy, acts of superior governmental authority, weather conditions, floods, riots, rebellions, sabotage, or any other circumstances for which it is not responsible or which are not within its control, and the time for performance automatically shall be extended by the period the party is prevented from perforating its obligations hereunder. G. Binding Effect. This Lease shall be to the benefit of and shall be binding upon the Lessor, Lessee and their respective successors and assignees, if such assignment shall have been made in conformity with the provisions of this Lease. C1 IN WITNESS WHEREOF, the parties have executed this Lease on the day and year first above written. CITY OF FAYETTEVILLE, ARKANSAS Lessor By ATTEST: By City Clerk Mayor DHL WORLDWIDE EXPRESS, INC. Lessee ATTEST: By cr Title: L, LEASE between the City of Fayetteville, Arkansas and DHL Worldwide Express, Inc. This LEASE is.executed this day of ,20 , by and between the City of Fayetteville, Arkansas, 113 W. Mountain St., Fayetteville, AR, 72701, hereinafter called "Lessor" and DHL Worldwide Express Inc., a Delaware Corporation, hereinafter called "Lessee." _________________ _____ :,'�,j4friJWJ)!.' Airport - Drake Field, hereinafter called "Airport", as reflected on and made a part hereof. 2. Term of Lease. The term of this Lease shall be: A, Initial Term. A period of two (2) years commencing on the date of this Lease, , 2001 and expiring at midnight on , 2003 unless otherwise terminated, canceled or extended as set forth herein below. B. Option to Extend. Lessee shall have the option to extend the Lease Term for five (5) consecutive one (1) year tenors, under the same terms and conditions of this Lease, provided: (1) Lessee has complied with and performed all conditions, covenants, and terms of this Lease without any uncorrected defaults if known to Lessee, or any defaults that are not otherwise in the process of being resolved in the manner provided in this Lease. (2) Notice of Lessee's intent to renew has been made in writing to Lessor at least thirty (30) days prior to the expiration of the term. A. Initial Term. During the initial term of this lease, Lessee agrees to pay Lessor for the use of the Leased Premises the sum of $ 175.00 per month. However, should the lease term begin on a day other than the first day of the calendar month, or should the lease end on a day other than the last day oldie calendar month, such partial mouth lease payment shall be a prorated share of the monthly lease payment. The initial lease payment is due and payable upon execution of this lease, and all subsequent monthly lease payments shall be due and payable in advance on or before the first day of the calendar month thereafter. A delinquency charge will be imposed on all payments not received by the close of business on the tenth day after the due date except that one (1) grace period in the first year of the Lease shall be allowed. The grace period is allowed for the purpose of establishing the payment schedule and accustoming the tenant to the payment schedule. Such delinquency charge shall be the maximum amount allowable under Arkansas law. Nonpayment of rent for a period of three (3) months shall be considered an event of default. All payments shall be delivered to: Fayetteville Municipal Airport, 4500 S. School Ave., Suite F, Fayetteville, AR 72701. B. Extended Term. The schedule of Rental Charges for the remaining five (5) option years shall be as follows: (1) Year 3 $225/month (2) Year 4 $300/month (3) Year 5 $425/month (4) Year 6 $550/month (5) Year 7 $550/month e shall maintain in force the Term, and any r:1 1YI J I I I II I II' 1 • 1'• • 11 . '• v 1 ii !kEh1ju:+ / 1 : I" : II :1 : ' 1 1 1 " :1 • 1 : V • 1 \ • I+ 1 PJ 1\ 1 .1 • 1 1 I' J!'p,JL, % 1= 1 1• I \ '• LiH1\ 11JS 1 hTf •'ir' I. L :� 1 J. :!1 "•1 YY11 YC 1+jj-I •'"responsible/installation,relocation and 1 1 1 •': 1\ 1 1 1 :� \\ on1 �: :1 1 1 .1.11111%! :\ :1 \ 1 1 11 .1 : :1 \ 1 1 11 • ' %� II M . 1 • I: 11 IL: II %L: 1 1 1 I FI :I 1 I 1 1 I L:%1 • .111`K :1'1 1- 111 • :.11 :I •Y:I :1 11:1 K\: I: I • 1' • •1 11 x•14 J' 11 ♦ • :+1: \ Y: ll 1 LII :+ 1 11 YIanc • :�: sY1 1 11 :: :+\`y- 1 , Y: it 1 :•• • :i • 1unu �+ 7r3'Iis \ 1'Intt. V.Ya 1 1:1 11• 11 I Y:�L • 1 191 1 1♦1:+ 1 1 :I4 : 111 ' 1 III I VI : III :I:Y M• 1 1 1' • ii , 1 :� ` 1 :: 1• :! 1 1 1 • 1 • Y V u ' I 1• •+ iitiJ1jiit U :ease 1 1 1 • .1 :� I w Y 1 :1 1 1 1 1 41 1/ 11 1 • • 1 1\ 1 1 11111 V1 1 I I • 4!.1j." =.the• 1 : 11 1 �. 1• 1' 11 41 II :+' V till 1 1 :1 1 :1 1 41 ! : ! ' 1 : M i • L. :activities ♦cli i ei1 • : B. Subject to Federal Aviation Administration, hereinafter referred to as "FAA" and Airport Security and Airport Operational Rules, Airport Minimum Standards, Regulations and Procedures, Lessee shall be entitled to use, on a nonexclusive basis, public areas of the Airport and runways, taxiways, aprons, lighting navigation aids, and other facilities necessary for the operation of aircraft and activities related to Lessee's business. ' :•: I•.•condition 1 1' t1i Jr' • "' n: 1 1 1flU ' JLP:1 •' n • • own 1 1 1 I .• • 1 • Iresponsible• • ' tmijk ig 1' I 1 :1 1 •. • 1 r 1' :� I• I • I G :9j1' • 11 1 "r:ll \ • 1 1 \\ • 1 1 : 1 • Y !11 ; 1 • • 1 n V •1 .1 F I :n 1 1' 1 , 1 ' • •• 1 1 1 1' 1 • 1• 1 1 1 1 1\ 1 1 1• I 1' I • 1 1 1 'Aj.fl 1 1 \ 1 1 :� P1 • :1 1 I H :': 1' :w1 • 1 1 1 j. : 1 1 1 1 1 •..1L 1 1 ,• 1 1: 11 :. 1' • 1. 1 Lessee1e'responsible• 1' L: :1 :III • I operating • 1 • 1 1' Y: \ 1 ' Y :. M 1 ✓. : I 1 : • 1 1 \ 1 • :1 111 I 1 1 • plumbing on :•: :1 III- I ' H c• 1 1 I! • 1 I11 I • 1 1 1 1 1 Lessor1 F. 1. I I'll I 1 maintenance • • RI VI ' :U I I I 4 • 11.: : Y'used - 1 11 j: 1 H I:I II 1 1 :: 1 • :4.1 1 1 1 I. 1 I11' I S• • II1' 1 1 " 1.1 H ii i! :.. • n 1 1' :� 11 I V 1 • ILd I.: 1 1. 1 N. 4 1 1 `• : w.Gir 1 • 1 • d ttfl iig ui 1 \ 1 \ 11 :Y. ♦ 1 1 M I 1 : Y ♦ 1. 1 • 1 1 1 I 1- "• 1 1' 1 YI FTh"I Y" ]- Y::1 fl11 1 1 :•CI Mit • 1 1 :M :/ :1 1!11 n :�VI • • 11 •1 . • •I :1 VI 1:1 1 =l K 1 1 " !! :n • I 1 from :: `:1 ' 11 n H • - n 1 ' •Jji:psriitiii • J n 1 '1 J%. • ' • r reasonable1 r: 1' • !l .s 1 ½UL&.' tlII�1 Page 3 D. Lessor may enter the Leased Premises at any reasonable time for any reasonable purpose necessary or incidental to the performance of its obligations hereunder. Notice of intent to enter will be given the Lessee except in emergencies. Lessor shall refrain from unreasonably interfering with Lessee's normal business operations and shall observe Lessee's security and safety rules. F. 4 I11 .11 • 1 . Y. • A. Lessor or Lessee may terminate this lease at any time by giving the other party ninety (90) days written notice of termination. • 1 I• • 4 I : I• • :� . 'J :4. • V 1 H t t :•. Y •Leased :� peacefully1 1 1. 11 I • :.•. 1 1' 1• t 1 1 1 1 1 •` 1 1' :11 :rl 1: • 1 • 1 .I Y"1' i1 i•nin 'JI 1 _�: s.l �[-II .n 1 4W.LJ I111•__Lw_ 1 • 1 LI II I 1 I 11'• S'; • 1: SI n • : / w II:II , - , : :, \ / 1 \ :� •h,1. 4 1 1. 1 1 'J I 11iii1' I' 1 1 • : 1 \ 1 V 1 1 1' 1 • 11 I' 11 V 1 : 11' 1 . I r• . 'J: 1 • I \ :O I :•:' 11 ! I \ I " :'ll \ I 1 1 • 1 :L • :1 1 :': 1 • • I 1 • 1 • � 1 : 1• \s:r• 1 I 1 :: \ : 1'1 1 1 M :• \ I : N : 11 :{I :1 , w I 1 properties 1' • '1 ! customers• :C 1 n'\ IL: :1IIILJI41 I,1':g I1restoration1 C. Failure of the Lessee to abide by the terms of this lease shall be considered an event of default which shall result in the termination of this Lease. 1 : I• 1 1 :� caused 1 :. 1 occupancy• Leased G :� provided. • w w: •. 1 1 • 1 ' 1 1 1 I 1 1 ' - 1 • • • 1 w: •. • I :1 1 ' ! ' :1 ' 1 11 r• J • :� • • ! : • employees 1 r 1 ! 1 • i :• • 1 P!I1 G11 11 11 :�':' 1 1 ' \ : �: /1 Yr41 1 SJ word, :, r' 1 !1 1 1 • 1 1 1: 1' construed • 1 I .1 4 •: 1 li' 1• ' /1\ • 11 :MI 1 I 1 l " I 11 1 I 1 �: Y'Jiii ' I : • !4:1,t. I . ,t.I liii,:;' III' n not: 1 1 II ° 1 > Leased I. 1 w 1 • 1 : • 1 :1 1 :1 `I 1 1. S. / r t I 4. :1 I 4 `n • , , :• • !1. 41 • • • n•1• • • :1 is m n'1 N 1 •affiliate,V rr4. 1 • 1 1 1• ti.: 11 111 4 • :{ • 1 1 Y" 1 Ir: ' :, :•. ,\ •' I I I • :� 1 1 4 1 !1 P to 1• 1 1 " 1 Y 1 ' 1 "1 V I I I: I:LI 1' 4. ,• 1 :1. 1' • 1 / ii i 1 1 1\IWIV 111 1 1 t• ' 1 1 1 1 1 w :1 C Notice to Lessor: Airport Manager's Office 4500 S. School Ave., Ste. F Fayetteville, AR 72701 501.718.7642 Notice of Lessee: Co to:) DHL Worldwide Express, Inc. ATTN: Corporate Real Estate DEL Legal Department 50 California Street 50 California Street Suite 500 Suite 500 San Francisco, CA 94111 San Francisco, CA 94111 415.677.6456 415.677.6145 451.677.7274 (fax) 451.986-6203 (fax) All covenants, conditions and provisions in this Lease shall extend to and bind the legal representatives, successors and assigns of the respective parties hereto. 11. Independent Contractor. This Lease shall not be deemed or construed to create any relationship or joint venture or partnership between the parties, to give the Lessor any interest in the business of Lessee, or to grant to Lessee any powers as an agent or representative of the City or Airport for any purpose or to bind the City or the Airport. Lessee shall be an independent contractor owning and operating its business as herein described. 12. Governmental Requirements Wkt'≥1'!!lIQ.)i iiI 4hh1* :1 J 1j I LU:u. . r*I 11 r r I :� ! nl 1 I ii' II II 1 1 1 L. 1 \ :1 1LI I I 1 \ 1-" • :1 F \ !'• ILiI 11 :� 1-: • 1 I:iij1 \ , ' , \ : .1 I 1 I 1 • .1 • I • M V 1 ' : I I `:ti III I P 1 1 1• I: 1•IFLJ : :., •conduct1 e B. No Liability for Exercise of Powers. The Lessor shall not be liable to Lessee for any diminution or deprivation of its rights which may result from the proper exercise of any power reserved to the Lessor in this Lease or by reason of governmental requirements; Lessee shall not be entitled to terminate this Lease by reason thereof, unless the exercise of such power shall interfere with Lessee's rights hereunder so as to constitute a termination of this Lease by operation of law. C. Nondiscrimination. Lessee, and its successors in interest, and assignees, as part of the consideration hereof, hereby do covenant and -agree; as-a-covenant-mmningwith"the-land,-that-in- 1 � Y the event facilities are constricted, maintained or otherwise operated on property described in this Lease for a purpose for which a Department of Transportation program or activity is extended or for another purpose involving the provisions of similar services or benefits, Lessee shall remain and operate such facilities and service in compliance with all other requirements imposed pursuant to Title 49 CFR Part 21, Nondiscrimination in Federally -Assisted Programs of the Department of Transportation -Effectuation of Title VI of the Civil Rights Act of 1964, as said regulations may be amended. Lessee, and its successors in interest, and assignees, as a part of the consideration hereof, do covenant and agree hereby that: (1) no person shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination in the use of said facilities on the grounds of race, color, creed, national origin, sex or disability; (2) in the construction of any improvements on, over or under such land, and the furnishings of services thereon, no person shall be excluded from participation in, denied the benefits of or otherwise be subjected to discrimination in the use of said facilities on the grounds of race, color, creed, national origin, sex or disability; (3) Lessee •I•.0 1• ItY . • 1011 l:ii 11 i! 11" ��.:A•:1 - A--i `j. :il I :� I : �I1: I : :tarJ' :1 •I I v: II I Y•1 M' III• • 1 1' u I :1 n•:�:I I 1 1 I I' •• • 1 : • / 1PXII /' 1 • n,1 1 . I J I I 1 Y J. I I 1 I • '11 • 1 I1: :r•t Lilt!' V Y I1M.P. 11 :.Y1 • I�� I . I r :u • I I I • •• I'•I YI • I I . II I 4 11.:111 . I:r:�\: • •:. 11I •1( 1 :•• : 111' W 1 • 1' :..' 1 r: `• : I :� I I 0.. :n 1 I. rl .1 : t': I I . I Y - : I 11 L •• :n 1,1 ordinances 1 : : 1 1 : r Y:ss , I v 11 I . • P. . I maximum . 1 1 1 t . Y: provided nn 1 Y. 1wjiLY 1 r: 1 ;:z ` 1' :: • • LP 1! `I I I I • I I I! 1 1 1 • I • I 1 11 1 wi •• 1 11 !l 1 1 1 • 1 r::1 1 VII 1 :Pu 1: 1' a Y 1 :. 1111 1 1.. II L• 1 MI11 • 1 1 -I1 _!: 11 I: 11 11 1 r • 1 11 1: Y 1 1' 11 1 P• YI 1 I • • V 11�. 11 :1 " I I Y:� 1 1 'I: t.1'.': 1 :11 A. Severability. In the event any provisions of this Lease shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof; unless such holding shall materially affect the rights of either party as set forth herein. B. Entire Lease_ Modification. This Lease expresses the entire understanding of the Lessor and Lessee concerning the Leased Premises. Neither the Lessor nor Lessee has made or shall be bound by any Lease or any representation to the other concerning the Leased Premises or the subject matter hereof which is not set forth expressly in this Lease. This Lease may be modified only by a written Lease of subsequent date hereto signed by the Lessor and Lessee. C Non -Waiver. Neither the waiver nor any forbearance of remedy by the Lessor of any breach of Lessee of any provision hereof shall operate as a waiver for any other breach by Lessee. D. Execution of Counteroarts. This Lease simultaneously may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. E. Choice of Law. This Lease shall be construed and enforced in accordance with the laws of the State of Arkansas. . _a" 1 P 1' . . %� _ I. 1 1 fall YI . 1 . LI r: I• 1 ❑ 11 I . 1' • II II 1 . I I 1 '1: 1 • Y Y 1 I :.: . I • I : • •-w. • I • y • II a P • 11 : M . 1 1 PII .. • superior• • I P•I• , I .JL . Iii. -IL1 #LI. I - AL1 L I 11 1 I 11: I Y: 1 11 11 11 1 1'4�k1 I Y LI 1. 1 1 4 • I 1 J: I. 1 Y i 1 i l I • 1 1 1: 1 . 1 ,' 1 • 1 I' 1 1 • 1 LJI •1'II • "'. : 1 1 :� 1 :MI w • 1 •ll 1 Y •� `l 1 I f 1 11 1 I • 1 • 1 1 , • • • 11 IN WITNESS WHEREOF, the parties have executed this Lease on the day and year first above written CITY OF FAYETTEVILLE, ARKANSAS Lessor Mayor ATTEST: BY. City Clerk DBL WORLDWIDE EXPRESS, INC. Lessee ATTEST: Page Two SPECIAL PROVISIONS 1. The City of Fayetteville, its officers and employees are included as Additional Insureds, but only as respects the operations of the Named Insured. 2. This policy includes a Date Recognition Exclusion Clause and a Date Recognition Limited Coverage Clause applicable to the Year 2000 and other computer date recognition issues. CANCELLATION NOTIFICATION: In the event of cancellation of the policy(ies), the party to whom this Cert be given thirty (30) days advance written notice of such cancellation, but not be liable in any way for failure to give such notice. The above Insurers have authorized Aon Aviation, a Division of Aon Risk Services, Inc. Southern California Insurance Services, as Insurance Brokers, to issue this certificate on their behalf. Aon Aviation has no obligation or liability of any kind in respect to the above policies nor as a result of the preparation of this document. This certificate or verification of insurance is not an insurance policy and does not amend, extend or alter the coverage afforded by the policies listed herein. Notwithstanding any requirement, term, or condition of any contract or other document with respect to which this certificate or verification of insurance may be issued or may pertain, the insurance afforded by the policies described herein is subject to all terms, exclusions and conditions of such policies. If Certificates have been issued prior to the Date of Issue of this Certificate, this Certificate cancels and supersedes each such Certificate. �1 Authorized AON AVIA Issued by: Aon Aviation, kJ)iivision of Aon Risk Services, Inc. 707 Wilshire Blvd., Suite 6000 Los Angeles, California 90017-5563 Telephone: (213) 630-1301 Facsimile: (213) 689-3162 Certificate No. I-082DHL Aon Aviation Jun eb U1 U4:14p 111Lir THJIYIK 06/26/01 TUE 12:07 FAX 213 689 3 JJU /bl JiaL • P . Y O003 Page Two SPECIAL PROVISIONS 1. The City of Fayetteville, its officers and employees are uaduded as Additional Insureds, but only as respects the operations of the Named Insured. 2. This policy includes a Date Recognition Exclusion Clause and a Date Recognition Limited Coverage Clause applicable to the Year 2000 and other computer date recognition issues. CANCELLATION NOTIFICATION: In the event of cancellation of the policy(ies), the party to whom this Certificate is issued will be given thirty (30) days advance written notice of such caoccllotion. The above Insurers have authorized Aon Aviation, a Division of Aon Risk Services, Inc. Southern California Insurance Services, as Insurance Brokers, to issue this certificate on their behalf. Aon Aviation has no obligation or liability of any kind in respect to the above policies nor as a result of the preparation of this document. This certificate or verification of insurance is not an insurance policy and does not amend, extend or alter the coverage afforded by the policies listed herein. Notwithstanding any requirement, term, or condition of any contract or other document with respect to which this certificate or verification of insurance may be issued or may pertain, the insurance afforded by the policies described herein is subject to all terms, exclusions and conditions of such policies. If Certificates have been issued prior to the Date of Issue of this Certificate, this Certificate cancels and supersedes each such Certificate. AON Issued by: Aon Aviatio tAivision of Aon Risk Services, Inc. 707 Wilshire Blvd, Suite 6000 Los Angelo, California 90017-5563 Telephone: (213)' 630-1301 Facsimile: (213) 689-3162 Certificate No. I-082DHL Aon Aviation 06/26/01 TUE 12:07 FAX 213 689 + ®003 Page Two SPECIAL PROVISIONS The City of Fayetteville, its officers and employees are included as Additional Insureds, but only as respects the operations of the Named Insured. 2. This policy includes a Date Recognition Exclusion Clause and a Date Recognition Limited Coverage Clause applicable to the Year 2000 and other computer date recognition issues. CANCELLATION NOTIFICATION: In the event of cancellation of the policy(ies), the party to whom this Certificate is issued will be given thirty (30) days advance written notice of such cancellation. The above-lnsurers-have-authorized—Aon Aviation, a tvtsioo of Aon Risk Services, Inc. Southern California Insurance Services, as Insurance Brokers, to issue this certificate on their behalf. Aon Aviation has no obligation or liability of any kind in respect to the above policies nor as a result of the preparation of this document. This certificate or verification of insurance is not an insurance policy and does not amend, extend or alter the coverage afforded by the policies listed herein. Notwithstanding any requirement, term, or condition of any contract or other document with respect to which this certificate or verification of insurance may be issued or may pertain, the insurance afforded by the policies described herein is subject to all terms, exclusions and conditions of such policies. If Certificates have been issued prior to the Date of Issue of this Certificate, this Certificate cancels and supersedes each such Certificate. AON Issued by: Mn AviatioA a,Aivision of Aon Risk Services. Inc. 707 Wilshire Blvd., Suite 6000 Los Angeles, California 90017-5563 Telephone: (213► 630-1301 Facsimile (213) 689-3162 Certificate No. 1-082DHL Aon Aviation ADDENDUM NO. 1 SCHEDULE OF INSURERS DHL WORLDWIDE EXPRESS, INC. and DHL AIRWAYS, INC. November 1, 2000 November 1, 2001 Comprehensive General Liability The Insurances certified hereon are subscribed to by the following Insurers: Comprehensive General Liability including Premises Liability Underwriters at Lloyd's, London and Certain Companies, through Aon Aviation Ltd., London 95.0% Policy No. AM0001491 Brockbank Insurance Services, Inc. On behalf of XL Specialty Insurance Co. Policy No. PXLA 37000053-00 5.00% 100% Aon Aviation J.111 LV Yl try. l'.r Lllll IIIJ1111\ 06/26/01 TUE 12:07 FAX 213 689 3162 • JJU 101 J13L • F, a ®000 ADDENDUM NO. 1 SCHEDULE OF INSUREFLS DHL WORLDWIDE EXPRESS, INC. and DHL AIRWAYS, INC. November 1, 2000 —November 1, 2001 Comprehensive General Liability The Insurances certified hereon are subscribed to by the following Insurers: Comprehensive General Liability including Premises Liabil6� Underwriters at Lloyd's, London and Certain Companies, through Aon Aviation Ltd., London Policy No. AM0001491 Brockbank Insurance Services, Inc, Do behalf of XL Specialty Insurance Co. Policy No. PXLA 37000053-00 95.0% 5.00% to Aon Aviation 06/26/01 TUE 12:07 FAX 213 68911162 . ®004 w ADDENDUM NO. 1 SCHEDULE OF INSUREIjLS DHL WORLDWIDE EXPRESS, INC. and DHL AIRWAys INC. November 1, 2000 —November 1, 2001 Comprehensive General Liability The Insurances certified hereon are subscribed to by the following Insurers: Comprehensive General Liability including Premises fifty Underwriters at Lloyd's, London and Certain Companies, through Policy No. AM0001491 Brockbank Insurance Services, Inc. On behalf of XL Specialty Insurance Co. Policy Na. PXLA 37000053-00 5.00% Aon Aviation ADDENDUM NO. 1 SCHEDULE OF INSURERS DHL WORLDWIDE EXPRESS, INC. and DHL AIRWAYS, INC. November 1, 2000 —November 1, 2001 Comprehensive General Liability The Insurances certified hereon are subscribed to by the following Insurers: Comprehensive General Liability including Premises Liability Underwriters at Lloyd's, London and Certain Companies, through Aon Aviation Ltd., London 95.0% Policy No. AM0001491 Brockbank Insurance Services, Inc. On behalf of XL Specialty Insurance Co. Policy No. PXLA 37000053-00 5.00% 100% Aon Aviation 4 06/26/01 TUE 12:06 FAX 213 689 3162 • • CERTIFICATE OF INSURANCE DATE OF ISSUE: June 25, 2001 THIS IS TO CERTIFY TO : City of Fayetteville Economic Development 4500 S. School Avenue, Suite A Fayetteville, AR 72701 Atm: Alert S. Little, AICP Economic Development Director -Airport Mgr. that Insurers, each for their own part and not one for the other, are providing the following insurance: Named Insured : DHL Worldwide Express, nnc. and DHL Airways, Inc. Address of Insured : 50 California Street, Suite .500 San Francisco, CA 94111 Policy Number See Addendum No. I Effective Date : November I, 2000 Expiration Date November 1, 2001 Geographical Limits Worldwide Description of Coverage Comprehensive General (Liability including Premises Liability. Limit of Liability : Combined Single Limit Bodily Injury Damage Liability 51,000,000.00 each occurrenProperty ce. Certificate No.1-092DHL Aon Aviation 06/26/01 TUE 12:06 FAA 213 689 3162 ®002 • • CERTIFICATE OF INSURANCE DATE OF ISSUE: June 25, 2001 THIS IS TO CERTIFY TO City of Fayetteville Economic Development 4500 S. School Avenue, Suite A Fayetteville, AR 72701 Ann: Alett S. Little, AJCP Economic Development Director -Airport Mgr, that Insurers, each for their own part and not one for the other, are providing the following —Insurance. Named Insured DHL Worldwide Express, Ilnc. and DILL Airways, Inc. Address of Insured 50 California Street, Suite 500 San Francisco, CA 94111 Policy Number See Addendum No. I Effective Date November I, 2000 Expiration Date November 1, 2001 Geographical Limits Worldwide Description of Coverage Comprehensive General Liability including Premises Liability. Limit of Liability : Combined Single Limit Bodily injury and Property Damage Liability $1,000,000,00 each occurrence. Certificate No.1-082DHL Aon Aviation • CERTIFICATE OF INSURANCE DATE OF ISSUE: April 13, 2001 THIS IS TO CERTIFY TO : City of Fayetteville Economic Development 4500 S. School Avenue, Suite A Fayetteville, AR 72701 Attn: Alett S. Little, AICP Economic Development Director -Airport Mgr. that Insurers, each for their own part and not one for the other, are providing the following insurance: Named Insured DHL Worldwide Express, Inc. and DHL Airways, Inc. Address of Insured : 50 California Street, Suite 500 San Francisco, CA 94111 Policy Number : See Addendum No. 1 Effective Date : November 1, 2000 Expiration Date : November 1, 2001 Geographical Limits Worldwide Description of Coverage : Comprehensive General Liability including Premises Liability. Limit of Liability : Combined Single Limit Bodily Injury and Property Damage Liability $1,000,000.00 each occurrence. Certificate No. I-082DHL Aon Aviation CERTIFICATE OF INSURANCE DATE OF ISSUE: April 13, 2001 THIS IS TO CERTIFY TO City of Fayetteville Economic Development 4500 S. School Avenue, Suite A Fayetteville, AR 72701 Attn: Alett S. Little, AICP Economic Development Director -Airport Mgr. that Insurers, each for their own part and not one for the other, are providing the following insurance: Named Insured : DHL Worldwide Express, Inc. and DHL Airways, Inc. Address of Insured : 50 California Street, Suite 500 San Francisco, CA 94111 Policy Number See Addendum No. 1 Effective Date November 1, 2000 Expiration Date November 1, 2001 Geographical Limits : Worldwide Description of Coverage Comprehensive General Liability including Premises Liability. Limit of Liability Combined Single Limit Bodily Injury and Property Damage Liability $1,000,000.00 each occurrence. Certificate No. I-082D1L Aon Aviation DHL Airways, Inc.IDHL Worldwide Express, Inc. Comprehensive Airline Liability Policy Effective November 1, 2000 to November 1, 2001 ACE One Terms Paper % of 100% Ace Global Markets Syn 2488 Lloyds' 8.00% Generali France per R. Malatier Generali France Assurances 3.75% D.J.Marshall Syn 839 (Maylam) Lloyds' 5.00% AXA AXA Global Risks UK 1.00% Frankona ERC Frankona 5.00% Mutual Marine New York Marine & General 1.35% 24.10% ACE Two Terms Ace Global Markets Syn 2488 Lloyds' 7.00% Brockbank Syn 588-1209 XLSpecialty Insurance Co. 5.00% Liberty Mutual Liberty Mutual Insurance Co. 5.00% AIG New Hampshire 5.00% Amlin Avn Syn 824 Lloyds' 5.00% D.E.Hope Syn 1009 Lloyds' 5.00% Generali Generali SPA 3.00% Kiln Avn Syn 510 Lloyds' 1.60% Generali France per R. Malatier Generali France 3.75% P.L.Dennis Syn 53 Lloyds' 2.50% Allianz Allianz 4.00% AXA AXA Global Risks UK 1.00% Frankona ERC Frankona 5.00% AFA AGFMAT 10.00% 62.85% International One Zurich Zurich Ins. Co. 5.00% 5.00% International Two ADNIC Abu Dhabi National 0.30% MISR MISR 0.25% Mutual Marine New York Marine & General 3.50% 4.05% International Three Aviabel Aviabel Com. Beige 4.00% 4.00% Grand Total 100.00% • C] DHL Airways, Inc./DHL Worldwide Express, Inc. Comprehensive Airline Liability Policy Effective November 1, 2000 to November 1, 2001 ACE One Terms Ace Global Markets Syn 2488 Generali France per R. Malatier D.J.Marshall Syn 839 (Maylam) AXA Frankona Mutual Marine Paper % of 100% Lloyds' 8.00% Generali France Assurances 3.75% Lloyds' 5.00% AXA Global Risks UK 1.00% ERC Frankona 5.00% New York Marine & General 1.35% 24.10% ACE Two Terms Ace Global Markets Syn 2488 Lloyds' 7.00% Brockbank.Syn_588_1209 XLSpecialtyJnsurance_Co 5.00% Liberty Mutual Liberty Mutual Insurance Co. 5.00% AIG New Hampshire 5.00% Amlin Avn Syn 824 Lloyds' 5.00% D.E.Hope Syn 1009 Lloyds' 5.00% Generali Generali SPA 3.00% Kiln Avn Syn 510 Lloyds' 1.60% Generali France per R. Malatier Generali France 3.75% P.L.Dennis Syn 53 Lloyds' 2.50% Allianz Allianz 4.00% AXA AXA Global Risks UK 1.00% Frankona ERC Frankona 5.00% AFA AGFMAT 10.00% 62.85% International One Zurich Zurich Ins. Co. 5.00% 5.00% International Two ADNIC Abu Dhabi National 0.30% MISR MISR 0.25% Mutual Marine New York Marine & General 3.50% 4.05% International Three Aviabel Aviabel Com. Belge 4.00% 4.00% Grand Total 100.00% FAYETTEVtLE • THE CITY OF FAYETTEVILLE, ARKANSAS RE C E I \! " [Ti DAN COODY, MAYOR JUN`Z 6 2001 4500 School Ave., Suite F Fayetteville, AR 72701 401.710.7642 AIRPORT ADMINISTRATION CITY OF FAYETTE VI LLE GARY DUMAS, UTILITIES DIRECTOR I AIPRORT MANAGER INTERIM MAYOR's OFFICE TO: Gary Dumas, Utility Services Director/Interim Airport Manager FROM: Dale Frederick, Airport Marketing DATE: June 26, 2001 SUBJECT: DHL - Drake Field Attached is some background information on DHL Worldwide Express at Drake Field that Lou compiled. * Page one gives a little of their history at Drake Field and their service areas. Their current location for their operation is located in t -hangar unit #B-1 ($115 month) and the north storage unit ($60 month) of that hangar. DHL was asked by Alett Little to relocate to the "old fire station" as a safety precaution for their operation and for the safety of aircraft and vehicle movement for other tenants on the ramp around the t -hangars. The area to unload and load DHL's aircraft and their aircraft's turn around area had been reduced with the construction of t -hangars "E" and "F". * Page two is the freight enplaned and deplaned at Drake Field by DHL for the years 2000 and 2001. * Page three is from the Chamber of Commerce's monthly publication "The Statesman" which shows the freight reported from Northwest Arkansas Regional Airport-XNA for the years 2000 and 2001. * Page four - airport layout. The t -hangars "E", "F", and "G" are not drawn to scale. * Letter to Alett Little from Dilip Yajnik of International Construction Consultants regarding the extension of DHL's current lease. The extension will expire at the end of July 2001. FAYETTEVILLE p/� • THE CITY OF FAYETTEVILLE, ARKANSAS RE R l E C E e \LR 7 j DAN GOODY, MAYOR JUN O g 2001 •` School Ave., Suite F C.Fayetteville, AR 72701 301.711.7642 AIRPORT ADMINISTRATION CITY OF FAYETTIL V I LLE GARY DUMAS, UTILITIES DIRECTOR I AIPRORT MANAGER INTERIM MAYOR'S OFFICE TO: Gary Dumas, Utility Services Director! Interim Airport Manager FROM: Dale Frederick, Airport Marketing r DATE: June 26, 2001 SUBJECT: DHL - Drake Field Attached is some background information on DHL Worldwide Express at Drake Field that Lou compiled. Page one gives a little of their history at Drake Field and their service areas. Their current location for their operation is located in t -hangar unit #B-1 ($115 month) and the north storage unit ($60 month) of that hangar. DHL was asked by Alett Little to relocate to the "old fire station" as a safety precaution for their operation and for the safety of aircraft and vehicle movement for other tenants on the ramp around the t -hangars. The area to unload and load DHL's aircraft and their aircraft's turn around area had been reduced with the construction of t -hangars "E" and "F". Page two is the freight enplaned and deplaned at Drake Field by DHL for the years 2000 and 2001. Page three is from the Chamber of Commerce's monthly publication "The Statesman" which shows the freight reported from Northwest Arkansas Regional Airport-XNA for the years 2000 and 2001. Page four - airport layout. The t -hangars "E", "F", and "G" are not drawn to scale. Letter to Alett Little from Dilip Yajnik of International Construction Consultants regarding the extension of DHL's current lease. The extension will expire at the end of July 2001. DHL History - Drake Field DHL began their operation at Drake Field in March 1998. Previously they made ground deliveries to NW Arkansas from either their Tulsa operation or their Joplin office. Their deliveries to this area had increased to a level they needed representation here. They began with two flights per day, early morning and late evening. In about October of last year they dropped the evening flight because of personnel/overtime problems, telling the Airport Administration Office it was cheaper to ground freight by truck from Tulsa to the Fayetteville for the evening freight delivery. This also reduced the airport's air traffic count. The delivery area for the Fayetteville office is fairly large, encompassing the following: * south as far as Waldren (about 1 hour south of Ft. Smith), * east as far as Huntsville and Berryville, and on I-40 to Ozark and Altus, * north to the Arkansas/Missouri state line, * west to the Arkansas/Oklahoma state line. Currently the DHL office is located inside the Airport's security fence which does not allow exposure to the public except with drop boxes around town. With the new location (the old airport fire station), it is reported the marketing person from the Tulsa office has said they would be working/marketing the Northwest Arkansas area now as they would have a real office to work out of that would give DHL street exposure. DHL personnel did look at office areas in the terminal a couple of years ago, but their company rules state they must keep their three vans locked inside their rental facility at night. The airline baggage makeup/garage area in the terminal was not large enough to accommodate their vehicles. With the construction of the new t -hangars north of DHL's rental space, the ramp has become reduced in size and easy access from their parked aircraft to their office is now not feasible. Recently they have been unloading the aircraft at the FBO location onto their vans which is unhandy for them. Enclosed is a listing of the freight in pounds reported by DHL at Drake Field for the years 2000 and 2001. Also enclosed is the latest report published in the Fayetteville Chamber of Commerce's monthly publication the "Statesman" showing the freight handled at the Northwest Arkansas Regional Airport. That DHL is located at Drake Field benefits this airport with rental, landings counted, fuel sales, as well as benefitting Fayetteville and the surrounding communities with quicker freight delivery and pickups. With their planned move to the old fire station they will be able to expand their operation as their marketing efforts in Northwest Arkansas are developed and expanded, hopefully establishing the second daily flight again. The old fire station is a good location on the airfield for an aviation related business as it has airside and landside access. Having an aviation related business occupy an otherwise vacant facility benefits all parties involved. DHL History - Drake Field DHL began their operation at Drake Field in March 1998. Previously they made ground deliveries to-NW-Arkansas-from-eithertheir-Tulsa-operation or their Joplin office. Their deliveries to this area had increased to a level they needed representation here. They began with two flights per day, early morning and late evening. In about October of last year they dropped the evening flight because of personnel/overtime problems, telling the Airport Administration Office it was cheaper to ground freight by truck from Tulsa to the Fayetteville for the evening freight delivery. This also reduced the airport's air traffic count. The delivery area for the Fayetteville office is fairly large, encompassing the following: * south as far as Waldren (about 1 hour south of Ft. Smith), * east as far as Huntsville and Berryville, and on I-40 to Ozark and Altus, * north to the Arkansas/Missouri state line, * west to the Arkansas/Oklahoma state line. Currently the DHL office is located inside the Airport's security fence which does not allow exposure to the public except with drop boxes around town. With the new location (the old airport fire station), it is reported the marketing person from the Tulsa office has said they would be working/marketing the Northwest Arkansas area now as they would have a real office to work out of that would give DHL street exposure. DHL personnel did look at office areas in the terminal a couple of years ago, but their company rules state they must keep their three vans locked inside their rental facility at night. The airline baggage makeup/garage area in the terminal was not large enough to accommodate their vehicles. With the construction of the new t -hangars north of DHL's rental space, the ramp has become reduced in size and easy access from their parked aircraft to their office is now not feasible. Recently they have been unloading the aircraft at the FBO location onto their vans which is unhandy Enclosed is a listing of the freight in pounds reported by DHL at Drake Field for the years 2000 and 2001. Also enclosed is the latest report published in the Fayetteville Chamber of Commerce's monthly publication the "Statesman" showing the freight handled at the Northwest Arkansas Regional Airport. That DHL is located at Drake Field benefits this airport with rental, landings counted, fuel sales, as well as benefitting Fayetteville and the surrounding communities with quicker freight delivery and pickups. With their planned move to the old fire station they will be able to expand their operation as theirmarketing efforts in Northwest Arkansas are developed and expanded, hopefully establishing the second daily flight again. The old fire station is a good location on the airfield for an aviation related business as it has airside and landside access. Having an aviation related business occupy an otherwise vacant facility benefits all parties involved. I C� DHL Worldwide Freight (lbs.) Year 2000 and 2001 Fayetteville Municipal Airport -Drake Field Fayetteville, Arkansas Month Activity Yr. 2000 Yr. 2001 January Enplane 66,687 29,595 Deplane 75,434 54,884 February Enplane 86,162 27,850 Deplane 100,797 49,460 March Enplane 102,728 26,260 Deplane 116,472 45,693 April Enplane 98,186 26,006 Deplane 108,452 47,465 May Enplane 87,738 35,395 Deplane 100,749 60,355 June Enplane 89,642 Deplane 104,439 July Enplane 75,320 Deplane 96,512 August Enplane 89,982 Deplane 111,187 September Enplane 68,291 Deplane 87,480 October Enplane 30,970 Deplane 50,655 November Enplane 31,295 Deplane 52,785 December Enplane 29,759 Deplane 46,909 TOTALS: ENPLANE 856,760 145,106 DEPLANE 1,051,871 257,857 L DHL Worldwide Freight (lbs.) Year 2000 and 2001 Fayetteville Municipal Airport -Drake Field Fayetteville, Arkansas Month Activity Yr. 2000 Yr. 2001 January Enplane 66,687 29,595 Deplane 75,434 54,884 February Enplane 86,162 27,850 Deplane 100,797 49,460 March Enplane 102,728 26,260 Deplane 116,472 45,693 April Enplane 98,186 26,006 Deplane 108,452 47,465 May Enplane 87,738 35,395 Deplane 100,749 60,355 June Enplane 89,642 Deplane 104,439 July Enplane 75,320 Deplane 96,512 August Enplane 89,982 Deplane 111,187 September Enplane 68,291 Deplane 87,480 October Enplane 30,970 Deplane 50,655 November Enplane 31,295 Deplane 52,785 December Enplane 29,759 Deplane 46,909 TOTALS: ENPLANE 856,760 145,106 MCDI AAIC n nG 071 ncoc� VI_, 1_"INL ,,VJ ,.VI I GJ dun 11:26a - / oktFRoCI{Aw et Qg p.1 'STATES MMAI R (MoOTHLy FAYETTEVILLE ECONOMIC:: All Items/U.S. Cities wt, 176.2 s . 171.1 ...a 1110 1110 ILe 11]Y :4,.. 170.9 1' mss J F M A M J J A 8 0 N D [J. i\. '4urnga0n9bEnflsa&c,.r r`- SAa r n`3aFn 6%iNd bEnaxlune�pr9rSaIbct anay. D..m:Mmdlt"xNaa Fe71.3 Number of Customers Served (Fayetteville) 28.860 vwCMnt 27.939 ""°"\I nl Mt M Mr Me M. 0 .. rl\ A J FM AMJ J A SO ND Source: Ozark, Electric Cooperative Soo hweslern E'ectnc Pavtt Co. BUILDING PERMIT VALUATIONS Fayetteville 13.538,101 r.apr.an "^"^ 8,131.583 rv.oa >_ m e, aD a ID 3 0 J FM AM J J♦ SO P40 Source: City of Fayeavhb , �ry,�• 1: 4 2.� AIRPORT ACTIVITY NWA Regional Airport -.Passengers 62,569 59,058 V.. p. � I 70 u a w w 10 0 Jr V AMJ JASON 0 Source: NW Arkansas Reponal Airport Washington -Benton Co. MSA 152,475 I v - It • n.„.:. 149,175 ,w. ' ii TM its m9 m9 I,, Mi ii Jr Al A M J JASON 0 Source: Labor Markel h,lamation SorIIon Ark Employment Security Dmslon NATURAL GAS CONSUMPTION Number of Customers Served (Fayetteville) 20.545 ^" n\w. 20.159 11.11\0 , ml Md ml lu na 1\9 Ice 9cvrca: Anan"s WeoIcn Gae Co. Inc'udes: ResIdenllal. Buskess 8 Industrial Use p..., 10,541,598 Neal 5,968,276 mn.e IIa '...4,J-Sctrn:e Clyd FJ,W9Hr COMMERCIAL/INDUSTRIAL' is 10 2996503 2.143.577 II Jr MAMJ JASON 0 ltrn9ea lmht'O?ab-am Oyd F&th* AIRPORT ACTIVITY NWA Regional Airport --Freight ., n.•..•\. 35.621 bn 28,239 Jo m IS TO F o ii J F PIASJ J A 9 O N 0 Source: NW Akansas Reck.el Airport DICAT Washington -Benton Co. MSA >, M\n r... � I'°" 2.4 1.8 v\.D1,w I u+"adl.J nn to Sri so "Li 20 h_ liii r3Jill sa 05 liii 0 J F N A IA J J A 5 0 N 0 Sowctr Labor Volkct Infommllan Segbn Ant Enployrnenl Security Division WATER UTILITY HOOK UPS City of Fayetteville vu.G— mnw.n 1.025 srel 1,053 2000 dew no 930 .0J ew MM re0 700 J FM A M J J A 9 0 MD Source: Coy of F9yettevee SALES & USE TAX COLLECTION Fayetteville 859,418 strut 11 869,538 •" too Co 200 I:W .�e I I Jr MAMJ JASON 0 Saeca: City c FayvN9vile I Fayetteville e.r 1 n 107,624 +nvnnm 108,747 as l IIiil Aa 01... ... J F MA Y J J♦ 3 0 NO SomN": Ciy of 15 4un 2O$1 11:26a P. RG-PDRTFROMW14AM61?R OF COI11r11E-2 C€ JS WrprTnMhN"(M0AJTHL`J MIE6v4211J6 FAYETTEVILLE ECONOMIC - ' CPI -URBAN* CIVILIAN LABOR FORCE All Items/U.S. Cities Washington -Benton Co. MSA 176.2 tic.,,.. _ Moe,171.1 ... r..I - 152,475 5.. II ......., 149,175 '•'r'N lit. ns0 re0 In-. In U. ,11F In Iwo :xsy',. J f N AM J J♦ S O H O +tIN. J F N A 51 J J A S 0 N 0 YbwrsNbelNa 5Y,4M0t.iCawSv'� �A US CA JNawMsMaedENMWe5rpmMy 5.,:w Ov,p 2' $puma: La6w MaAel blwlnelbn SAnbn 160.p M1A6.6Ovsa. Oei¢:Wwdtiv aYfaa Ini�t A& Employment Sac_ Dmslon . ELECTRIC CONSUMPTION k NATURAL GAS CONSUMPTION Number of Customers Served ,"^'3 Number of Customers Served (Fayetteville) x., " gjj (Fayetteville) Mn....ti 28.860 ' Onl 27.9D9 "" II ; 17. 20.545 t•d•'t 'Jn Ian rM,F-■ Ii J F MAId J JASON 0 Source: 02elks Elearb Cooperative Sovl,westem Eletarc Power Co. BUILDING PERMIT VALUATIONS Fayetteville 13,538,101 Imoo^•" b"10, 8,131,583 '-"1 ii 30 25 20 I5 to I 0 N A M 4 J♦ SO HO Source: Cy of FayeNevWe AIRPORT ACTIVITY NWA Regional Airport --Passengers 62,569 ltov,wJ r inn,...e 59,058 arW le I0 So 1to 0 II II I S0wte: NW Arkansas Regional sapod ltD - -Its J F U A M 4 J A S 0 N 0 Source: Arkenpe WeetOrn On Co. Incudes: Re,Medial, Business 8 Industrial Use pe�A 10,541,598 fv.we.i YN.+ 5,988,276 ban I . �h e J J t CO MM E RCIAL/INDUSTRIAL* J r M AM J J A 5 0 HO + nwnwstlW5/F?ab-'wua Rf'dFNmnt AIRPORT ACTIVITY NWA Regional Airport --Freight 28,239 50 ea Is 10 20 . r L' L b.1 L 5 C N I. Somma: MV g3,ansa Regbnal Aimoi DIC-A UNEMPLOYMENT RATE Washington -Benton Co. MSA 1.8 '-on.. w.eNl.r 2.4 tM ii 0.0 !.f El 50 20 I .0 05 0 JP MA M J JA 5 0 Some: Labor Marker Informallon Section Ark EmploylnanI Sxvrlly Division Yn J'<.'at ..2t .... WATER UTILITY HOOK UPS City of Fayetteville v.. o..e N n�rw 1,025 y-^^ I 1,053 2000 IFw aW no F0, fly m no 700 4 FMA NJ J A 50 NO Source: CRY of FeyeIeMga 859,418 eir"'n 889,538 rw,.n tm ii 1ff ii e 111 11 11 11 I JPMAMJJASOH D Sance: City of Fay ancen1e HOTEUMOTEURESTAURANT TAX RECEIPTS Fayetteville 107,624 tip.-• "}�' 108,747 +F -t II tea o;i ,',•:, too b ayi 1u11, yp \ l N. L. 1.: J J< S C U 0 p'2 Jniyyy )tr Sttm: City of Fayattevik #', r 15 k/8 n P• . O X y„ * 'Y.4 i•W I 1 C x • . q ��h0 II // i •�•SS,ygggN ii `' J - I I I � 11 b/ // I0 ry I // iiN // lb I / 46r W II „ •W//I y DIM DII F II \I 11 IC -a-. .I TRr _ x or 2 O_i r / u l rvl m N I La WI a� 4 ry/ < y/ < lii N I Y J WI) ? yyyy1�r1 '' 3 - I - --=- �E51= \'' I / I N �-� _ U / / ' hr/ < • I m+ __I I b W01 t ; O /` I / 19 0p1 / / / / f I M _ W I II W l < W I b / W I' b/ I F Z 1� � y � h ` VVV/// It t m —Ny III z I 1. OyO I I1` N PoM I to W - • Z- HANSCOMB Harscomb Inc. - 500 Grant Street - Akron. OH 44311 - Tel: (330) 255-1108 Fax: (330) 761-9152 VIA FACSIMILE AND US MAIL May 22, 2001 Ms. Alett Little Economic Development Director The City of Fayetteville 4500 S. School Ave. Suite A Fayetteville, AR 72701 RE: DHL Lease Dear Alett: RECEIVED MAY 252001 This letter is in reference to your letter dated May 11, 2001, in which you have granted DHL an additional two -month lease extension and the referenced lease will now expire on July 31, 2001. Thanks for the extension. I am very close obtaining DHL's approval for the relocation. Once approved, I will forward the lease documents to DI -IL for the signature. Please feel free to call me if you have any questions or comments. Sincerely, Dilip P. Yajnik Project Manager INTERNATIONAL CONSTRUCTION CONSULTANTS Ama Cmibrppe- Clydbtle-CHcoGo'Daly -Denver. Graenvte- Hotalon - Los AFpeles - Now Voh-Orbrgo- mceton.San FrmcMrn-WmNrpron DC Oveaeos Offices F Latin Amerka EMoae -Mlade Eat - Alto - Afb Z— HANSCOMB Hanscomb Inc. - 500 Grant Street - Akron, OH 44311 - Tel: (330) 255-1108 Fax: (330) 761-9152 VIA FACSIMILE AND US MAIL May 22, 2001 Ms. Alett Little Economic Development Director The City of Fayetteville 4500 S. School Ave. Suite A Fayetteville, AR 72701 Dear Alett: RECEIVED MAY 252001 AIRPORT This letter is in reference to your letter dated May 11, 2001, in which you have granted DHL an additional two -month lease extension and the referenced lease will now expire on July 31, 2001. Thanks for the extension. I am very close obtaining DHL's approval for the relocation. Once approved, I will forward the lease documents to DHL for the signature. Please feel free to call me if you have any questions or comments. Sincerely, Dilip P. Yajnik Project Manager INTERNATIONAL CONSTRUCTION CONSULTANTS At1Tb- Cmtrtge - Gabtte- CNco0o-DAa Demo. ton difon- La. A,gets New Yolk - Guano -PM'Keton -Sa, kTCbco - WWO*. ton DC OAMkem Omcos rtntb flnedca- EUOGo - h4d oEmt- AMco - FAYETTEVtLE RECEIVED THE CITY OF FAYETTEVILLE, ARKANSAS 2 9 2001 DAN COODY, MAYOR J U N 4500 School Ave., Suite F CITY OF FAYETTEVILLE Fayetteville, AR 72701 MAYORS OFFICE 501.718.7642 AIRPORT MANAGEMENT GARY DUMAS, UTILITIES DIRECTOR! AIPRORT MANAGER INTERIM TO: Gary Dumas, Utility Services Director / Interim Airport Manager FROM: James Nicholson, Financial Coordinator DATE: June 29, 2001 SUBJECT: Fire Station Roof Following your request, I have requested an inspection and assessment of the condition of the roof at the old fire station building at Drake Field. At this time, two contractors have inspected the roof. A third contractor is scheduled to inspect the roof Monday, July 2. Contractor #1: Estimated that the roof was 15-20 years old. He stated that the roof was showing signs of deterioration. Gravel is washed away in places and the composite fiberglass membrane exposed in a number of places. Generally, the membrane is intact however there is a previously leaking area over the street side door that has been patched within the last few years and should be re -patched with roof cement. The contractor offered to make the repair for under $100. Contractor #2: Specializes in hot -tar roofing. He indicated that the membrane appears intact but shows signs of wear. Stated that the life expectancy of a roof of this type is 20-30 years. He noted the missing gravel areas, exposed membrane, and granulated (deteriorated) tar. He offered three alternate proposals for addressing the roof's condition. Mechanically remove gravel, minor repair of metal edging, seal protrusions, flood coat with hot tar and re -gravel. Should extend the life of the existing roof for quite some time. Cost $1,600 2. Mechanically remove gravel, install '/2 perlite recondition board, organic base sheet in hot asphalt, rubberoid granular single ply (torch down application). Cost - $5,600 3. Complete tear -off and re -roof. He did not provide a cost for this option but did state that the cost would be considerably more that option 2. Please call me if you need additional information. X643. FAYETTEVtLE RECECV D THE CITY OF FAYETTEVILLE, ARKANSAS DAN COODY, MAYOR JUN 2 9 2001 4500 School Ave., Suite F CITY OF FAYET1 EVILLE Fayetteville, AR 72701 MAYOR'S OFFICE 501.718.7642 AIRPORT MANAGEMENT GARY DUMAS, UTILITIES DIRECTOR I AIPRORT MANAGER INTERIM TO: Gary Dumas, Utility Services Director / Interim Airport Manager FROM: James Nicholson, Financial Coordinator DATE: June 29, 2001 U SUBJECT: Fire Station Roof Following your request, I have requested an inspection and assessment of the condition of the roof at the old fire station building at Drake Field. At this time, two contractors have inspected the roof. A third contractor is scheduled to inspect the roof Monday, July 2. Contractor #1: Estimated that the roof was 15 - 20 years old. He stated that the roof was showing signs of deterioration. Gravel is washed away in places and the composite fiberglass membrane exposed in a number of places. Generally, the membrane is intact however there is a previously leaking area over the street side door that has been patched within the last few years and should be re -patched with roof cement. The contractor offered to make the repair for under $100. Contractor #2: Specializes in hot -tar roofing. He indicated that the membrane appears intact but shows signs of wear. Stated that the life expectancy of a roof of this type is 20-30 years. He noted the missing gravel areas, exposed membrane, and granulated (deteriorated) tar. He offered three alternate proposals for addressing the roofs condition. with hot tar and re -gravel. Should Cost $1,600 flood c� some 2. Mechanically remove gravel, install 1/2 perlite recondition board, organic base sheet in hot asphalt, rubberoid granular single ply (torch down application). Cost - $5,600 3. Complete tear -off and re -roof. He did not provide a cost for this option but did state that the cost would be considerably more that option 2. Please call me if you need additional information. X643. • C� FAYETTEVILLE THE CITY OF FA YETTEVILLE, ARKANSAS DEPARTMENTAL CORRESPONDENCE To: Mayor and City Council From: Gary Dumas, Utilities Service Director Date: June 28, 2001 Subject: DHL Lease At the Council Agenda session of June 25, it was reported that DHL had resubmitted their insurance documents to address the Council concerns pertaining to the "failure to notify language in the original lease." The revised pages of the lease are attached to your packet. Dale Frederick has prepared a background paper on the current DHL lease and other information, which you may find interesting. That report is attached also. At this time I do not have a report on the roof from a roofing contractor, however on inspection Tuesday after the rain on Monday night there were no wet ceiling tiles or other visible signs of current problems. I will have information from a contractor on Monday for our tour. As a side note, the assets of the airport need to be maintained to prevent deterioration. If there is a leak we will need to repair that problem whether we lease the property or not. S • FAYETTEVILLE THE CITY OF FA YETTEVILLE, ARKANSAS DEPARTMENTAL CORRESPONDENCE To: Mayor and City Council From: Gary Dumas, Utilities Service Director Date: June 28, 2001 Subject: DHL Lease At the Council Agenda session of June 25, it was reported that DHL had resubmitted their insurance documents to address the Council concerns pertaining to the "failure to notify language in the original lease." The revised pages of the lease are attached to your packet. Dale Frederick has prepared a background paper on the current DHL lease and other information, which you may find interesting. That report is attached also. At this time I do not have a report on the roof from a roofing contractor, however on inspection Tuesday after the rain on Monday night there were no wet ceiling tiles or other visible signs of current problems. I will have information from a contractor on Monday for our tour. As a side note, the assets of the airport need to be maintained to prevent deterioration. If there is a leak we will need to repair that problem whether we lease the property or not. STAFF REVIEW FORM X AGENDA REQUEST Lease - DHL Worldwide Express X CONTRACT REVIEW GRANT REVIEW For the Fayetteville City Council meeting of 6/5/2001 FROM: Alett Little Airport Name Division Economic Development Department ACTION REQUIRED: Administrative review of a draft of Lease with DHL Worldwide Express. Return to Airport with proposed changes for final draft. Request City Council approval, and signature of Mayor. COST TO CITY: 2,100 (Revenue) Cost of this Request 5550-0955-4450-00 Account Number N/A Project Number tffflIenis $ 63.000 Category/Project Budget S(26,250) Funds used to date $ 36,750 Remaining Balance X Budgeted Item Administrative Services Dir. Date Lease Agreement Category/Project Name Airport Revenue Program Name Airport Fund _ Budget Adjustment Attached C NT CT[GRANT/LEASE REVIEW: �!/ __CSSIorO( Accounting Manager /•J Date Internal Aud' r Date GRANTING AGENCY �c Ga r•h r/�LYI�—� S//u/a C' Aqttbm�eqate ADA Coordinator Date yj. ft S! 5 tl lot Purchasing Officer Date Grants Coordinator Date STAFF RECOMMENDATION: Airport staff recommends review and approval by the Staff Review Committee of Lease as a final draft, and approval of the Lease Agreement by the City Council. The Airport Board recommended approval of the Lease Agreement at their meeting of May 3r1, 2001. Head Mayor Director Date ..5 /D"O / pilott D ate Cross Reference New Item: Yes Prev. Ord/Res#: Orig Cont. Date: Orig Cont #: No E STAFF REVIEW FORM Description: Meeting Date: June 51, 2001 Lease - DHL Worldwide Express Comments: Budget Manager Reference Comments: Accounting Manager Reference Comments: yCAty Attorney n Reference Comments: Ii th- 4' enf t Iha+ Aovs Aura+kor, ujtsrWnf�f a.4 U,oh'r cj pp h'oe(64 k %. jjej a. yen, e,, A+2 )NIJRI/ jr l¢nfiA L, d., L✓files/ ,i /{✓�nrAi Purchasing Officer Reference Comments: Internal Auditor Reference Comments ADA Coordinator Reference Comments: Grants Coordinator Reference Comments: FAYETTEVLLE THE CITY OF FAYETTEVILLE, ARKANSAS DAN COODY, MAYOR 4500 School Ave., Suit A Fayetteville, AR 72701 501.575.8301 alittle©ci.tayetteville.ar.us ECONOMIC DEVELOPMENT DEPT AIRPORT MANAGEMENT ALETT S. LITTLE, DIRECTOR TO: Fayetteville City Council FROM: Alett Little, Airport Manager / Economic Development Coordinator THRU: Staff Review Committee DATE: May 2, 2001 SUBJECT: DHL Lease Attached is a draft lease negotiated with DHL Worldwide Express. DHL is a package shipping and delivery outfit similar to UPS. DHL currently occupies an end utility unit in "B" hangar on the East side of the field. Their trucks must cross the aircraft movement area to move packages to and from their East -side business location. This lease will allow them to move their operations to the West side, to the old fire station building, thereby achieving greater safety for aircraft at the East -side hangar area. The new lease maintains DHL's rent at $175 / month for two years, with progressive increases toward market -rate through annual renewal options for five years. A copy of the company's insurance is attached as City policy requires an Airport Lessee to have "insurance by an insurer licensed to do business in the State of Arkansas." The Airport Board has approved forwarding the Lease with DHL to City Council at their meeting of May 3r°, 2001. Airport administration requests that the Staff Review Committee review the lease prior to signature by DHL so that any minor changes can be incorporated into a final draft submitted to DHL for their signature. This will facilitate timeliness in bringing the completed document before the City Council. Budget Considerations: Sufficient budget is available to meet City Policy. Action Requested: Review of the draft Lease Agreement with DHL Worldwide Enterprises for the lease of the old Airport Fire Station building located at 4140 S School Ave. City Council approval and signature of the Mayor. Staff Recommendation: Approval of the lease as negotiated. AL/jn FAYETTEVI fLE THE CITY OF FAYETTEVIEEE. ARKANSAS DEPARTMENTAL CORRESPONDENCE To: Gary Dumas, Utility Services Director From: Heather Woodruff, City Clerk Date: July 11, 2001 Attached is a copy of the resolution approving the lease agreement with DHL. I am returning three originals to you. One original contract and the resolution will be microfilmed and filed with the City Clerk. cc: Nancy Smith, Internal Audit II Page Two SPECIAL PROVISIONS 1. The City of Fayetteville, its officers and employees are included as Additional Insureds, but only as respects the operations of the Named Insured. 2. This policy includes a Date Recognition Exclusion Clause and a Date Recognition Limited Coverage Clause applicable to the Year 2000 and other computer date recognition issues. CANCELLATION NOTIFICATION: In the event of cancellation of the policy(ies), the party to whom this Certificate is issued will be given thirty (30) days advance written notice of such cancellation, but Aon Aviation shall not be liable in any way for failure to give such notice. The above Insurers have authorized Aon Aviation, a Division of Aon Risk Services, Inc. Southern California Insurance Services, as Insurance Brokers, to issue this certificate on their behalf. Aon Aviation has no obligation or liability of any kind in respect to the above policies nor as a result of the preparation of this document. This certificate or verification of insurance is not an insurance policy and does not amend, extend or alter the coverage afforded by the policies listed herein. Notwithstanding any requirement, term, or condition of any contract or other document with respect to which this certificate or verification of insurance may be issued or may pertain, the insurance afforded by the policies described herein is subject to all terms, exclusions and conditions of such policies. If Certificates have been issued prior to the Date of Issue of this Certificate, this Certificate cancels and supersedes each such Certificate. �1 Authorized AON AV IA Issued by: Aon Aviation, kJfvision of Aon Risk Services, Inc. 707 Wilshire Blvd., Suite 6000 Los Angeles, California 90017-5563 Telephone: (213) 630-1301 Facsimile: (213) 689-3162 Certificate No. I-082DHL Aon Aviation