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Home My WebLink About71-02 RESOLUTIONRESOLUTION NO. 71-02 A RESOLUTION APPROVING A GROUND LEASE AGREEMENT. WITH FLYING INVESTMENTS, LLC FOR SPACE AT THE FAYETTEVILLE MUNICIPAL AIRPORT TO CONSTRUCT A CORPORATE HANGAR. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council hereby approves a Ground Lease Agreement with Flying Investments, LLC for space at the Fayetteville Municipal Airport to construct a corporate hangar. A copy of the Lease Agreement marked Exhibit "A" is attached hereto and made a part hereof. PASSED and APPROVED this 7th day of May 2002. yryt of 7 it WOODRUFF, Ci' Clerk r 0•, APPROVED: By DAN COODY, May • NAME OF FILE: CROSS REFERENCE. Resolution No. 71-02 • 05/07/02 Resolution No. 71-02 05/07/02 Exhibit "A" (Ground Lease Agreement) 04/16/02 Memo to Mayor Coody & City Council Members thru Staff Review Committee from Ray M. Boudreaux, Director, Airport, regarding Airport Ground Lease for Corporate Hangar Construction 04/15/02 Memo to Mayor Coody thru Staff Review Committee from Ray M. Boudreau, Director, Airport, regarding Sublease Approval 05/07/02 Staff Review Form 05/08/02 Memo to Ray Boudreaux, Airport, from Heather Woodruff, City Clerk 04/12/02 Sub -Lease Agreement with Flying Investments, LLC 04/15/82 Staff Review Form plus information regarding NW Arkansas Technology Center, for the green hangar located at 4240 S. School Avenue NOTES: 010 03 Update Document Reference AIR Date 4122002 City f Fayetteville ndex Maintenance Ite Action Ref. Taken Brief Description LEA • 5/02/2002 7:34:40 SUB -LEASE FLYING INVESTMENTS,LLC Enter Keywords • LEASE FLYING INVESTMENTS, LLC 4240 S SCHOOL AVE ARKANSAS AVIATION TECHNOLIGES CENTER TRAINING FACILITY 6 MONTHS 4/22/02 10/31/02 File Reference # • MICROFILM Security Class Expiration Date Date for Cont/Referred: Name Referred to • • • Cmdl-Return Cmd8-Retention Cmd5-Abstract Yes No Retention Type: _ **** Active **** Cmd4-Delete Cmd3-End Press 'ENTER' to Continue (c) 1986-1992 Munimetrix systems Corp. 010 03 Update Document Reference RES City of Fayetteville ndex Maintenance later Action Date Ref. Taken Brief Description 5072002 71-02 • 5/23/2002 9:22:34 GROUND LEASE/FLYING INVESTMENT LLC Enter Keywords • RES. 71-02 GROUND LEASE AGREEMENT FLYING INVESTMENTS, LLC SPACE FAYETTEVILLE MUNICIPAL AIRPORT CONSTRUCT CORPORATE HANGAR File Reference # • MICROFILM Security Class Retention Type: Expiration Date **** Active **** Date for Cont/Referred: Name Referred to • Cmdl-Return Cmd8-Retention CmdS-Abstract Yes No Cmd4-Delete Cmd3-End Press 'ENTER' to Continue (c) 1986-1992 Munimetrix Systems Corp. JUL-22-2003 TUE 11:57 AM FAY. MUN, AIRPORT I 4797187646 • • �� Pat t - Fayetteville Municipal Airport DD)ra4y fieif 4500 School Ave, Suite F Fayetteville, AR 72701 479.718,7642 479.718.7646 Fax P, 01 . TRANSMITTAL SHEET To and 2 Q SKY% / Gcxe(.+ FROM: 8U MP 0 Oxido DATE: 9 -aa -63 FAX NUMB TOTAL NO. OP PAGES INCLUDING COVER, 3 PHONE NUMBER: • SENDER'S REFERENCE NUMBER: "a) dalatitel ❑ URGENT YOUR REFERENCE NIJMBEI ad et ctirS. LI/L]O I/� POR REVIEW 0 PI.P.ASE COMMENT 0 PLEASE REPLY 0 PLEASE RECYCLE NOTES/COMMENTS: ,� u 71-02 /ay AtLv LLC Xuatit_ Mani& XtQ.t )/ 11549 j flea 6 ) 10 -Tear e _ \ 0.}-. . 31 '2. I 01,41 ✓�t+.� Vim{ �.(R�PYI. impui.ast 4D Ciadste (14. 4-6 a03 a o3 __J1�/per Luz)) c;nAX.s.:.. PJ-o/L��L�,\ ouu do ea..}pei • e1ta-Le d1art0.-i "Lu�� Haat [�-LiteA. ass asa,244_ D` 14 O GrILIA�Q Air /_.L* —" Cax d P da im .rta.Ita OctI ,,anoleSo 39. c 041044-4 "° `¢rf' _ gut lajti d 51-03 AVIATION AND ECONOMIC DEVELOPMENT RAY M. BOUDREAUX. DIRECTOR lta� i 1 JUL-22-2003 TUE 11:57 AM FAY. MUN. AIRPORT 4797187646 P. 02 • • RESOLUTION NO A RESOLUTION APPROVING A gROUND LEASE AGREEMENT_ WITH FLYING INVESTMENTS, LLC FOR SPACE AT THE FAYETTEVILtE MUNICIPAL AIRPORT TO CONSTRUCT A CORPORATE HANGAR. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: 1 Section 1. That the City Council hereby approves a Ground Lease Agreement with Flying Investments, LLC for space at the Fayetteville Municipal Airport to construct a corporate hangar. A copy of the Lease Agreement marked Exhibit "A" is attached hereto and male a part hereof. PASSED and APPROVED this 7th day of May 2002. ATTEST- By:r4t;' �HWOODRUFF, Clerk APPROVED: 13y JUL-22200.3 TUE 11:57 AM FAY. MUN. AIRPORT •• 4797187646 LEASE AGREEMENT Ground Lease P. 03 This Lease Agreement entered into this 7 day of /A, 2Q02 by and between the City of Fayetteville, Arkansas, hereinafter ref tied to as the "Lessor," and Flying Investments LLC, P. O. Box 8153. Fayetteville, Arkansas 72703 hereinafter referred to as "Tenant"; WHEREAS, the Lessor owns and operates an Airport known as Fayetteville Municipal Airport - Drake Field. situated in Washington County in the State of Arkansas; and WHEREAS, Tenant desires to lease from Lessor certain space for the construction of an aircraft hangar and ramp as described below: A CERTAIN TRACT OF LAND 140 FT. X 140 FT. LOCATED AT THE FAYETTEVILLE MUNICIPAL AIRPORT - DRAKE FIELD AND MORE PARTICULARLY SET FORTH AND SHOWN ON EXHIBIT "A", ATTACHED HERETO AND MADE A PART HEREOF, ONCE COMPETED TO HAVE AN ADDRESS ON SOUTH SCHOOL AVENUE. NOW, THEREFORE, the Parties hereto agree as follows: 1. LEASEHOLD. The Lessor does hereby grant, demise and lease unto Tenant certain premises situated in Washington County, Arkansas, within the boundaries ofthe FayettevittrMuniclpat Airport- Drake Field. Tenant will be responsible for all ovemeti st to the Leased Premises. 2. TERM. The term of brie lease is for thirty (30) y following the date the occupancy permit is grante midnight the end of the previous month in the y otherwise terminated canceled or extended as s terminate this lease at any time by giving the termination during the first six (6 ) months followin breaking for the new facility. beginning on the first day ofthe next mo ( t day of r&.. , 20(13) and ending 2032 (' Ana y '31 . 2053), unless t forth herein below. Lessor or Tenant may her party thirty (30) days written notice of e date of the lease and prior to the ground th A. Option to Extend. Tenant Flying Investments LLC shall have he S 1iioirtn- en• the Lease Term of this Lease for one (1) period of Twenty (20) years if Tenant Flying Investments LLC, has satisfied the following conditions (extensions beyond fifty (50) years must be renegotiated and approved by the City Council): (1). Tenant has complied with and performed all conditions, covenants, and terms of the Agreement without any defaults known to Tenant, or any defaults that are not otherwise in the process of being resolved in the manner provided in this Agreement. 4Y2 • • LEASE AGREEMENT Ground Lease • 4s.7/ -oz EXHIBIT A This Lease Agreement entered into this '7 day of , 2002 by and between the City of Fayetteville, Arkansas, hereinafter ref red to as the "Lessor," and Flying Investments LLC, P. O. Box 8157, Fayetteville, Arkansas 72703 hereinafter referred to as "Tenant"; WHEREAS, the Lessor owns and operates an Airport known as Fayetteville Municipal Airport - Drake Field, situated in Washington County in the State of Arkansas; and WHEREAS, Tenant desires to lease from Lessor certain space for the construction of an aircraft hangar and ramp as described below: A CERTAIN TRACT OF LAND 140 FT. X 140 FT. LOCATED AT THE FAYETTEVILLE MUNICIPAL AIRPORT - DRAKE FIELD AND MORE PARTICULARLY SET FORTH AND SHOWN ON EXHIBIT "A", ATTACHED HERETO AND MADE A PART HEREOF, ONCE COMPETED TO HAVE AN ADDRESS ON SOUTH SCHOOL AVENUE. NOW, THEREFORE, the Parties hereto agree as follows: 1. LEASEHOLD. The Lessor does hereby grant, demise and lease unto Tenant certain premises situated in Washington County, Arkansas, within the boundaries of the Fayetteville Municipal Airport- Drake Field. Tenant will be responsible for all improvements to the Leased Premises. 2. TERM. The term of this lease is for thirty (30) years beginning on the first day of the next month following the date the occupancy permit is granted (/ day of fUnuE , 2003) and ending at midnight the end of the previous month in the year 2033 (31 % M ate, , 2033) unless otherwise terminated, canceled or extended as set forth herein below. Lessor or Tenant may terminate this lease at any time by giving the other party thirty (30) days written notice of termination during the first six (6) months following the date of the lease and prior to the ground breaking for the new facility. A. Option to Extend. Tenant Flying Investments LLC shall have the option to extend the Lease Term of this Lease for one (1) period of Twenty (20) years if Tenant Flying Investments LLC, has satisfied the following conditions (extensions beyond fifty (50) years must be renegotiated and approved by the City Council): (1). Tenant has complied with and performed all conditions, covenants, and terms of the Agreement without any defaults known to Tenant, or any defaults that are not otherwise in the process of being resolved in the manner provided in this Agreement. -1- m x 2 ani tot.. • • • (2). Notice of Flying Investments LLC's request to renew has been made and. presented in writing to the City of Fayetteville at least one hundred twenty (120) days prior to the expiration of the term. (3.) The amount of rental fees shall have been successfully negotiated and agreed to by the parties for the extended lease term. 3. RENTAL FEES. During the term of this lease, Tenant Flying Investments agrees to pay Lessor -City of Fayetteville an annual ground rental fee of five cents ($.05) per square foot of total leased ground space. Leased ground space totals 19,600 square feet. Annual rental due the Lessor is Nine Hundred and Eighty Dollars ($980.00) . Said rental is to be paid in advance in yearly installrnts on the first day of the next month following the date the occupancy permit is granted (_efiay of Qwv.>L , 2003). If paid annually, or in increments of five (5) years or less, rental charges shall be reviewed every five (5) years and the rental charges for the next five (5) years of the lease term will be adjusted up to reflect the Consumer Price Index (CPI) plus one (1) percent, using the formula on Lease Attachment 111. The parties agree that the rental to be effective as of the commencement of each period of the lease shall be equal to the rate set forth, as adjusted by the CPI, as defined to mean the monthly index published by the United States Department of Labor, Bureau of Labor Statistics and in no case shall be less than the amount paid for the previous period. Index utilized will be for the month nearest to the renewal date as published by the United States Department of Labor, Bureau of Labor Statistics prior to the renewal date. A delinquency charge will be imposed on payments not received by the close of business on the tenth day after the due date. Such delinquency charge shall be the maximum amount allowable under Arkansas law. All payments shall be delivered or mailed to: City of Fayetteville, 113 West Mountain Street, Fayetteville, Arkansas 72701. 4. UTILITIES AND JANITORIAL SERVICES. Tenant shall be responsible for the payment of the utilities associated with any, but not limited to, electric, gas, heating, water/sewer, and trash removal to the leasehold. The Lessor shall not be required to furnish to Tenant any facilities or services of any kind, such as, but not limited to, water/sewer, trash removal, electricity, or gas. Any such facilities or services required by Tenant for their use and purposes shall be their sole and exclusive responsibility and agree to hold Lessor harmless from any responsibility or liability therefore. 5. TERMS AND CONDITIONS. Tenant agrees to comply with and abide by all terms and conditions set forth in this original Agreement of Lease. -2- • • • 6. USE OF THE PREMISES. Tenant agrees that the leased premises shall be used and occupied only as an aircraft hangar and for related lawful purposes. A. Flammable Material. Tenant further agrees not to store any flammable material on the demised premises other than a limited supply of oils and agents necessary for the operation of an aircraft hangar. B. Hazardous Substance. Tenant shall not cause or permit any Hazardous Substance to be used or stored on or in the Leased Premises with out first obtaining the Lessor's written consent. If Hazardous Substances are used, stored, generated, or disposed of on or in the Leased Premises or if the Leased Premises or any other Airport property becomes contaminated in any manner for which Tenant is responsible or legally liable, Tenant shall indemnify and hold harmless the Lessor from any and all claims, damages, fines, judgements, penalties, costs, liabilities, or losses (including, without limitation and decrease in value of the Lease Premises, damages caused by loss or restriction of rentable or usable space as part of the Leased Premises) arising during or after the term hereof and arising as a result of that contamination by Tenant, Tenant's agents, employees, and invitees. This indemnification includes, without limitation, and all costs incurred because of any investigation of the Airport or any cleanup, removal, or restoration mandated by a federal, state, local agency or political subdivision. C. Tenant shall not start or operate aircraft engines within the facility leased hereby and shall not allow such operations by any other person. 7. USE OF THE AIRPORT. Tenant Flying Investments LLC is granted the use, in common, without charge, with others similarly authorized, of the airport, together with all facilities, equipment, improvements, and services which have been or may hereafter be provided at or in connection with the Airport from time to time including, but not limited to, the landing field and any extensions hereof or additions thereto, roadways, runways, ramps, aprons, taxiways, flood lights, landing lights, beacons, control tower, signals, radio aids, and all other conveniences for flying, landings and takeoffs. Tenant agrees to observe and obey Lessor's Ordinances and Regulations with respect to the use of the demised premised and Airport, provided, however, such Ordinances and Regulations shall be consistent with safety and with all city, county, state, and federal ordinances, rules and regulations. Tenant agrees to abide by the rulings of the Federal Aviation Administration with respect to the use of the Leased Premises. "Airport Minimum Standards for Operations and Commercial Activities" herein referred to as Airport Minimum Standards at Fayetteville Municipal Airport are made part of this lease by reference as if included word for word. Special provisions for the use of fuel storage facilities are at Lease Attachment #2. 8. REPAIRS, MAINTENANCE AND APPEARANCE A. Tenant shall at all times during the term of this Lease Agreement, at Tenant's expense, -3- • keep and maintain in good repair and safe condition the leased premises and the equipment and appurtenances, both inside and outside, structural and non-structural, extraordinary and ordinary, whether or not necessitated by wear, tear, obsolescence or defects, latent or otherwise. When used herein, the term "repairs" shall include all necessary replacements, renewals, alterations, additions, and betterments. Tenant acknowledges that Tenant shall be responsible for the repairs and maintenance necessary to maintain the structural integrity of the hangar. Tenant will at all times maintain the Leased Premises in a clean, orderly, and attractive condition; not allow the accumulation of rubbish, trash, refuse and any unsightly conditions or fire hazards on the Leased Premises. Tenant shall be responsible for mowing and the upkeep of the outside grounds of the Leased Premises. Tenant shall be responsible for all janitorial services and trash removal from the Leased Premises. B. The necessity for and adequacy of repair to the Lease Premises, pursuant to subparagraph (a.) hereof, shall be measured by the standard which is appropriate for improvements of similar construction and also shall meet the requirements and standards set out and promulgated by the City of Fayetteville pursuant to the primary lease referred to above. C. Tenant agrees to reimburse Lessor for all sums and expenses incurred in the repairs or maintenance required or caused to be made pursuant to the regulations and rules of the Lessor mentioned in subparagraph (b) above as a result of failure by Tenant to maintain or repair the demised premised as required. 9. ALTERATIONS AND IMPROVEMENTS. Tenant shall have prior written consent from the Lessor, meeting all City requirements, to make any alterations, additions and improvements Tenant deems necessary and desirable to the interior of the leased premises. Tenant shall not be entitled to make any major or material alterations, additions or changes to the exterior of the leased premises without the Lessor's prior written consent. Tenant acknowledges and agrees that all such alterations, additions and improvements, including paneling, partitions, railings, floors, ceilings and the like, shall become the property of the Lessor upon the terminations of the Lease Agreement. ' 10. INSURANCE. Tenant shall obtain and maintain property insurance coverage for the repair or replacement of the leasehold and any adjacent improvements, with an insurance company licensed to do business in the State of Arkansas, naming the City of Fayetteville and the Fayetteville Municipal Airport and their trustees, agents, officers, and employees are named as an additional insured on the policy, and Tenant shall provide the Airport Administration Office with a Certificate of Insurance during the term of this Lease. Tenant acknowledges that it is the Tenant's responsibility to maintain insurance on Tenant's personal property. 11. SUB -LEASING AND ASSIGNMENT. Tenant shall not be entitled to sub -lease or assign the Tenant's interest in this Lease Agreement without first obtaining the written permission of the Lessor, provided however, Tenant may assign Tenant's interest in this Lease Agreement for a One -4- • • Hundred and Eighty (180) day period to Qualified Escrow, LLC, in order for Tenant to accomplish a tax deferred exchange under Section 1031 of the Internal Revenue Code A request to sub -lease or an assignment of the lease will not be unreasonably withheld. 12. EVENTS OF DEFAULT. The following shall be "events of default" under this Agreement, and the terms "events of default" or "default" shall mean, whenever they are used herein, any one or more of the following. A. Tenant shall fail to pay when due and owning any rentals hereunder and such nonpayment shall continue for twenty days after written notice thereof by the Airport; B. Tenant voluntarily shall abandon, desert, or vacate the Leased Premises; C. Tenant shall fail to comply with insurance requirements imposed hereunder, D. Tenant shall fail to observe or perform any other of its obligation hereunder, and such failure shall continue unremedied for twenty (20 days after the Lessor shall have given to the Tenant written notice specifying such default. Provided, the Airport may grant Tenant such additional time as it's reasonably required to correct any such default if Tenant has instituted corrective action and diligently is pursuing the same; E. Tenant shall fail to provide and maintain any security assurances required hereunder; or 13. REMEDIES UPON Tenant'S DEFAULT. Whenever an event of default of Tenant shall occur, the Lessor may pursue any available right or remedy at law or equity including: A. Termination. At its exclusive option, the Lessor may deliver to Tenant written notice of termination, specifying the date upon which the Agreement will terminate. In the event of termination, Tenant's rights to possession of the Leased Premises immediately shall cease. The Lessor may then reenter and take possession of the Leased Premises and Tenant forthwith shall surrender possession of the Leased Premises. Upon termination of this Agreement, Tenant shall be liable for payment of: (1.) All sums accrued through the date of termination. (2.) The reasonable costs incurred by the Lessor to relet the Leased Premises, or any portion thereof; and (3.) The reasonable cost incurred by the Lessor to restore the Leased Premised or any portion thereof to the condition in which they originally were leased, ordinary wear and tear excepted. All rentals received by the Lessor from re -letting the Leased Premises after the termination of this -5- elf • • Agreement shall be credited against the Outstanding Rental Balance. The acceptance by the Lessor of any rentals from Tenant after the termination ofthis Agreement shall not reinstate this Agreement. Upon such notice, Tenant agrees to vacate the premises immediately. Should it become necessary for Lessor to resort to judicial process to enforce the terms ofthis Agreement, or reclaim possession of the premises, Tenant agrees to pay a reasonable attorney's fee. 14. EXPIRATION OR TERMINATION. On the expiration or other termination of this Lease, Tenant 's right to use the demised premises shall cease, and Tenant shall vacate the premises without unreasonable delay. All property installed, erected, or placed by Tenant in, on, or about the premises leased hereunder shall be deemed to remain the property of Lessor. Tenant shall have the right at any time during the term of this agreement, or any renewal or extension hereof, and for an additional period of seven (7) days after the expiration or other termination of this agreement, to remove any or all of Tenant's property, subject, however to Tenant's obligation to repair all damage, if any, resulting from such removal. Any and all property not removed by Tenant prior to the expiration of the aforesaid seven (7) day period shall thereupon become a part of the land on which it is located and title hereto shall thereupon vest in Lessor. 15. TERMINATION OF AIRPORT. In the event that the Fayetteville Municipal Airport facility and property are no longer used for aviation purposes, the Tenant may remain in possession of the premises until the end of the lease term with the right to use the premises for any use allowable under Arkansas law. 16. TAXES. Tenant shall pay all ad valorem taxes and assessments upon the leased premises and upon all personal property located upon the leased premises which are assessed during the lease term. 17. MORTGAGING OF LEASEHOLD. Tenant is hereby given the absolute right without the Lessor's consent to mortgage his interest in the leased premises, provided that no such mortgage shall extend to or affect the fee, the reversionary interest, or the estate of Lessor in and to the land and building (hangar facility complex) erected thereon. 18. INDEMNITY. Tenant agrees to indemnify Lessor against any liability for injuries to persons or damage to property caused by Tenant's gross negligent use or occupancy of the leased premises; provided, however, that Tenant shall not be liable for any personal injury, damage or loss occasioned by the negligence of Lessor or its agents or employees, and provided further, that each party shall give prompt and timely notice of any claim made or suit instituted which in any way directly or indirectly affects or might affect either party, and each party shall have the right to compromise and defend the same to the extent of its own interest. This clause shall not be construed to waive that tort immunity asset forth under Arkansas Law. 19. NON -WAIVER. Neither the waiver by Lessor of any breach of Tenant of any provision hereof nor any forbearance by the Airport to seek a remedy for any such breach shall operate as a waiver of any other breach of Tenant. -6- a • • r • 20. NOTICES. Any notice or consent required by this Agreement shall be sufficient if sent by Certified Mail, return receipt requested, postage paid, to the following addresses: LESSOR: Airport Administration Office 4500 S. School Avenue, Suite F Fayetteville, Arkansas 72701 PH: 479-718-7642 FAX: 479-718-7646 LESSOR: Flying Investments LLC P. O. Box 8157 Fayetteville, Arkansas 72703 PH: 479-530-4000 FAX: 479-443-9424 21. This Agreement shall be construed under the laws of the State of Arkansas. 22. All the covenants, conditions, and provisions under this agreement shall extend to and bind the legal representatives, successors, and assign of the respective parties hereof. IN WITNESS WHEREOF, the parties have executed this lease on the day and year first above written. A`FTL'S 1 ' ath`er •,:% ite¥ • • ‘ar•Ir� ATT By: Title: 4Cle�dniff, City Cle ((1 LESSOR: CITY OF F By: TTEVILLE, ARKANSAS Dan Coody, Mayor LESSEE; By: 44.4W4r4.6 C34 cl+'vk Z 2fie10-7- Title Jttc or_ cxe Au::9-r-to ry: Ci- Z. 421- t Fp; Ptr iIiii\ • • • LEASE ATTACHMENT NUMBER ONE Rent adjustments shall be made as of the commencement of each of the Dates Upon Which Rent Increases Apply and shall be determined by the following formula: Rent as last so increased under this Lease multiplied by: 1 + Current Index - Base Index Base Index plus one percent (1%) of the Rent as last so increased under this Lease Where, "Current Index" shall be the CPI (D-1 Consumer Price Index -All City Average," "all items groups, subgroups and special groups," published monthly in the Monthly Labor Review of the Bureau of Labor Statistics of the United States Department of Labor) for the month immediately prior to the applicable Dates Upon Which Rent Increases Apply, and Base Index shall be the CPI for the month immediately prior to the Commencement Date or the most recent Dates Upon Which Rent Increases Apply, whichever is applicable. In no event, however, shall the Rent for any period be less than the Rent as last so increased under this Lease. In the event that such CPI is no longer published or otherwise available, the adjustment provided for herein shall be by the successor (or the most nearly comparable successor index) thereto, adj usted as appropriate to the applicable dates. -8- • • • • LEASE ATTACHMENT NUMBER TWO Fuel stored in the Airport Fuel Storage Facility shall be coordinated with the Airport Administration Office and all fees and charges required by City Ordinance shall be remitted to the City of Fayetteville. Deliveries shall be coordinated so as not to overfill the fuel storage tanks. In addition to Buyer and Supplier Fees (Fuel Flowage Fees) charged by City of Fayetteville Ordinance, an In - To -Plane Fee shall be charged at the following rate schedule for each calendar year. First: Second: Third: Fourth: And Subsequent: 100,000 gallons delivered in -to -plane 100,000 gallons delivered in -to -plane 100,000 gallons delivered in -to -plane 100,000 gallons delivered in -to -plane $.25 per gallon $.20 per gallon $.15 per gallon $.10 per gallon • .. • • • II AYtESr.'.i.i FP ft Y il 7 5-801- •x- 100' (8,000 S.F. N • x2Q0'HANG/ Qy00=;]j -10--017-X- 100x' 1- (10, 000 - (10,000 S.F.) 1) • • C sakAt Ct . ..N I, .��.. r— -�.- •_� `s i•' • -a; d._ i f f t ;• J}N-'�_„'_�1__ • • Exhibit "A" �u. FAYETTEALLE THE CITY OF FAYETTEVILLE, ARKANSAS DAN COODY, MAYOR TO: THRU: FROM: DATE: SUBJECT: MEMORANDUM Dan Coody, Mayor City Council Members Staff Review Comm Ray M. Boudreaux, Di April 16, 2002 Airport Ground Lease for Corporate Hangar Construction • Background: Attached please find the final ground lease signed by Flying Investments, LLC Inc. of Fayetteville. The company will construct a corporate hangar on property leased from the City at Fayetteville Municipal Airport from which to operate a flying business. The company plans to operate several corporate jet aircraft. Purpose: To approve an airport ground lease contract with Flying Investments, LLC of Fayetteville. Budget Considerations: Flying Investments, LLC will pay the City $980.00 a year for the ground. An agreement has been negotiated as part of the lease agreement for the company to purchase their own fuel and for the City to store it and pump it into the aircraft utilizing airport staff. Fees charged have been negotiated on an annual basis so that the fees paid for the service decrease with the quantity pumped into the planes. Requested Action: Approval by the City Council. Signature by the Mayor and City Clerk. Attachments: Staff Review Form Lease agreement Aviation and Economic Development Department Fayetteville Municipal Airport, Drake Field 4500 South School Avenue, Suite F Fayetteville, Arkansas 72701 Ray M. Boudreaux, Director C 0 FAYETTEVIILLE THE CITY OF FAYETTEVILLE, ARKANSAS DAN COODY, MAYOR AVIATION AND ECONOMIC DEVELOPMENT RAY M. BOUDREAUX, DIRECTOR • /500 School Ave., Suite F Fayetteville, AR 72701 501.718.70/2 TO: THRU: FROM: DATE: SUBJECT: Dan Coody, Mayor Staff Review Com Ittee Ray M. Boudreaux, iirector April 15, 2002 Sublease Approval Background: Attached please find a sublease to Flying Investments, LLC from the Arkansas Aviation Technology Center of space for a Falcon 20 aircraft. The sublease is to allow the sublessee to park the aircraft in the hangar for the fee of $500.00 per month. We require that the City approve all sublease agreements. We have reviewed the agreement and recommend approval and signature by the Mayor. Purpose: Review and signature by the Mayor. Budget Considerations: N/A. Requested Action: Signature Attachments: Staff Review Form Sublease agreement M 0 • INA STAFF REVIEW FORM X_ AGENDA REQUEST X CONTRACT REVIEW _ GRANT REVIEW For the Fayetteville City Council meeting of May 7 2002 FROM: Ray M. Boudreaux Name Airport Division Aviation & Economic Development Department ACTION REQUIRED: Approval of Flying Investments, LLC ground lease agreement for the purpose of constructing an aircraft hangar and signature by the Mayor and City Clerk. COST TO CITY: $ ( 980.00) Cost of this Request 5550 0955.4457.00 Account Number N/A Project Number $ 28,160.00 Category/Project Budget $ 0 Funds used to date $ 28,160.00 Remaining Balance Ground Rent/Freight Category/Project Name Charges for sernce Program Name Airport Fund 7T VIE X Budgeted Item U -i S- Thin Budget ager Date Administrative Services Dir. Date Budget Adjustment Attached C TRAC--T/ u Mgnager T/LEASE REVIEW: 1/19/02.. Date Internal Auditor Date GRANTING AGENCY 't/hila t. c.iyItt �m^y Purchasing -`-rOfficer I I9Dpte ADA Coordinator Date 41b Date Grants Coordinator Date STAFF RECOMMENDATION: Approve the Airport Ground Lease Contract wth Flying Investments Inc. Mey3gt/StN-0,S$ COP SA" Date Date Cross Reference New Item: Yes X Prev. Ord/Res#: Orig Cont. Date: Orig Cont #: No s F 0