HomeMy WebLinkAbout01-06 RESOLUTIONRESOLUTION NO. 01-06
A RESOLUTION GRANTING THE CITY OF FAYETTEVILLE'S
CONSENT TO THE ASSIGNMENT OF A HANGAR LEASE FROM
THE NORTHWEST ARKANSAS AVIATION TECHNOLOGIES
CENTER TO NORTH WEST ARKANSAS COMMUNITY
COLLEGE.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas,
hereby consents to the assignment of 'a Hangar Lease from the Northwest
Arkansas Aviation Technologies Center to North West Arkansas Community
College. A copy of the assignment, marked Exhibit "A" is attached hereto and
made a part hereof.
Section 2: That the City Council of the City of Fayetteville, Arkansas,
hereby authorizes the Mayor and City Clerk to execute. the Consent to
Assignment, a copy of which, marked Exhibit "B" is attached hereto and made a
part hereof.
PASSED and APPROVED this 3rd day of January, 2006.
ATTEST:
By:
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•G\� Y O c L�
'A-
;FAY ETT EVILLE;
%yd ,• RKANS. •° J /
SONDRA SMITH, City Clerk
APPROV&D:
By
DAN COODY, Mayor
ASSIGNMENT OF LEASE
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FOR VALUABLE CONSIDERATION, the undersigned Northwest Arkansas
Aviation Technologies Center, as Assignors, do hereby sell, set over, transfer and assign
unto North West Arkansas Community College, as Assignee, all of their right, title, and
interest in and to that certain Lease dated July 3`a , 2002, with Option #1 dated April 22nd
2004, and effective from July 15t, 2004 to June 30th, 2009, between City of Fayetteville,
Arkansas, as Lessor, and Northwest Arkansas Aviation Technologies Center, as Lessee,
covering the following described real property:
The Hangar Facility located on Drake Field, Fayetteville at address 4248 South
School Avenue, Fayetteville, Arkansas.
Lessor consents to the assignment of the Lease to Assignee as requested.
This Assignment shall commence on January 1,2006. Assignor shall be responsible for
covenants, obligations (including, but not limited to, the duty to pay rent), conditions and
agreements contained in the Lease arising prior to January 1, 2006, and the Assignee
shall be responsible for covenants, obligations (including, but not limited to, the duty to
pay rent), conditions and agreements contained in the Lease arising on and after January
1, 2006.
It is agreed and understood that Lessee is not in violation of any terms of the Lease at the
time of this Assignment.
Lessor and Assignee agree that paragraph 12 of the Lease shall be and is hereby deleted.
WITNESS our hands and seals this R day of wet:wiz 200`✓.
Assignor Signature r --g, A signor Signature �"'
in.d �,,,;.. N�+4fc Eye-clan/6 PtenR- /rw!%,A72
STATE OF ARKANSAS
)ss.
COUNTY OF WASHINGTON
This instrument was acknowledged before me on e.ep,►nig2_,( , 20%
Ke,+ Williaancon and YYlic%lae.1 K.rdc$1 ter •
My Commission expires:
j�t-aoo l
OFFICIAL SEAL
CHRISTY L. GRIFFITH
NOTARY PUBLIC -ARKANSAS
nrKIT ^LI /VV LITV
ACCEPTANCE OF ASSIGNMENT
The undersigned Assignee, North West Arkansas Community College , designated in the
foregoing Assignment of the therein described Lease, hereby accept and approve the
same and unconditionally agree to be bound by and comply with all the terms, conditions
and covenants thereof.
Witness my hand and seals this c' day of 1,'QeMleis" , 2065 .
(Assignee'Signature)
STATE OF ARKANSAS )
)ss.
COUNTY OF WASHINGTON )
his instr ment was acknowledged before me onte,QQ CV
My Commission expires:
OFFICIAL SEAL
JEANETTE L. ANDERSON
NOTARY PUBLIC . ARKANSAS
BENTON COUNTY
COMMISSION EXP. 07/01/2010
•
&DO
, 20'by
CONSENT TO ASSIGNMENT
THE CITY OF FAYETTEVILLE, ARKANSAS a public entity in the State of Arkansas,
do hereby:
1. consent to the foregoing Assignment and Acceptance between Northwest Arkansas
Aviation Technologies Center, as Assignors, and Northwest Arkansas Community
College, as Assignee.
WITNESS my hand and seal this (#day of :i� , 2006 .
CITY VILLF,,rARKANSAS
By: i an Coody, Mayor
STATE OF ARKANSAS )
)ss.
COUNTY OF WASHINGTON )
Thys ins rument was acknowledged before me ondan. 6+j- h 21rb
�'n
/140 r and etf 9 � n Ply Oita .
My Commission expires:
8 o76/ob
laity l:ouncil Meeting of: January 3, 2005
Agenda Item Number:
CITY COUNCIL AGENDA MEMO:
TO: Mayor and Members of the City Council
THRU: Staff/Contract Review Committee
FROM: Ray M. Boudreaux, Director, Aviation and Economi 1 , elopment
DATE: December 9, 2005
SUBJECT: Approve assignment of lease agreement with the Arkansas Aviation Technology
Center to the Northwest Arkansas Community College for their facility on
Fayetteville Municipal Airport, Drake Field.
RECOMMENDATION: Approve assignment of the lease agreement with the Arkansas Aviation
Technology Center (AATC) to the Northwest Arkansas Community College (NWACC).
BACKGROUND: The AATC recently partnered with the NWACC and it considered to be a win-
win combination. Both Boards agreed to the merger as there are many benefits with this
arrangement. First the cost to the student will be reduced. Second, the marketing profile of the
program will increase and result in more students registering in the program. And third, the
employees of AATC will receive the benefit of being employees of the State. This has always been the
goal of the AATC from its inception. The creation of a Washington County presence at the former
West Campus facilitated this agreement and got the process off dead center.
DISCUSSION: This action is necessary as part of the acquisition of AATC by NWACC. The AATC
will remain much the same as in the past and the FAA program certification will remain with AATC.
Should the program move or change in any substantial way, the whole process must be repeated.
The POC for the lease will remain with the AATC Director. They have excluded paragraph 12 of the
lease since the lessee is an institution of the State of Arkansas.
BUDGET IMPACT: The AATC pays $4,500.00 per month rent and pays utilities and maintenance
on the building. The date of the lease is July 1, 2002 and has three 5 year options. AATC signed
option #1 on July 1, 2004 which expires June 30, 2009.
Attachments: Staff Review Form
Assignment of Lease
Original Lease
RESOLUTION NO.
A RESOLUTION GRANTING THE CITY OF FAYETTEVILLE'S
CONSENT TO THE ASSIGNMENT OF A HANGAR LEASE FROM
THE NORTHWEST ARKANSAS AVIATION TECHNOLOGIES
CENTER TO NORTH WEST ARKANSAS COMMUNITY
COLLEGE.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas,
hereby consents to the assignment of a Hangar Lease from the Northwest
Arkansas Aviation Technologies Center to North West Arkansas Community
College. A copy of the assignment, marked Exhibit "A" is attached hereto and
made a part hereof.
Section 2: That the City Council of the City of Fayetteville, Arkansas,
hereby authorizes the Mayor and City Clerk to execute the Consent to
Assignment, a copy of which, marked Exhibit "B" is attached hereto and made a
part hereof.
PASSED and APPROVED this 3rd day of January, 2006.
ATTEST.
sy4:
SONDR'A' SMITIh
APPROVED:
By:
Pi
DA:C-01515Y, Ma)oij
1. e
EXECUTIVE HANGAR LEASE AGREEMENT
This LEASE AGREEMENT made this S'e° day of 2002, between the
City of Fayetteville, Arkansas, hereinafter called "the City", and Northwest Arkansas Aviation
Technologies Center of 4248 S. School, Fayetteville, Arkansas 72701, hereinafter called "AATC".
WHEREAS, the City is the owner of an airport known as the Fayetteville Municipal Airport
(Drake Field), herein referred to as the "Airport"; and
WHEREAS, the City is the owner of a facility at the Airport; and
WHEREAS, AATC desires to lease this facility.
NOW, THEREFORE, the parties, m consideration of the mutual covenants contained
herein, hereby agree as follows:
1. The City leases to AATC, and AATC leases from the City, the facility located at
4248 South School Avenue, Fayetteville, Arkansas .72701 as reflected on Exhibit "A" attached
hereto and made a part hereof.
2. AATC is granted the use, without charge, in common with others similarly
authorized, of the Airport, together with all facilities, equipment, improvements, and services which
havebeen or may hereafter be provided at or in connection with the Airport from time to time
including, but not limited to, the landing field and any extensions hereof or additions thereto,
roadways, not less than one hundred (100) auto parking spaces, runways, ramps (including noise
barriers), aprons, taxiways, flood lights, landing lights, beacons, control tower, signals, radio aids,
and all other conveniences for flying, landings and take -offs.
3. AATC shall have at all timesthe full and free nght in ingress to and egress from the
demised premises and facilities referred to herein for AATC, its employees, students, guests, and
other invitees. Such rights shall also extend to persons or organizations supplying materials or
furnishing services to AATC.
4. Subject to earlier termination as hereinafter provided, the initial term of the Lease
Agreement shall be for a period of two (2) years commencing on the15S day of July , 2002 (the
effective date hereinafter referred to as the "Commencement Date") and ending on the 30th day of
June, 2004. The City further agrees to extend this Agreement for three.additional five (5) year terms.
The parties agree that the rental to be effective as of the commencement of the
shall be $4,500.00 per month, or as negotiated by the parties for each of the subsequent renewal
terns shall be equal to the rate as adjusted by the CPI Index, as defined to mean the monthly index
published by the United States Department of Labor, Bureau of Labor Statistics. Consumer Price
Index for all Urban Customers (CPI -U) Dallas -Fort Worth, Texas - All Items (1982-1984=100).
Index utilized shall be at that most recently published prior to the renewal date by the formula at
Attachment #1.
5. AATC agrees to pay the City for the use of the demised premises, facilities, rights,
and privileges granted hereunder the sum of $3.750.00 per month during the initial I'' se term. The
initial Lease payment is due and payable in advance upon the Commencement Date and all
subsequent monthly Lease payments shall be due and payable in advance on or before the first (1')
day of each calendar month thereafter.
6. The City shall maintain and keep m good repair so much of the Airport premises as is
not under the exclusive control of AATC.
the facility.
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AATC shall be responsible foi the lawn care and the appearance of outside grounds of
AATC shall provide for and supply at its expense all janitor service with respect to
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the demised premises, and shall pay for all utilities serving the demised premises.
8. AATC agrees to observe and obey the City's Ordinances and Regulations with
respect to use of the demised premises and Airport; provided, however, such rules and regulations
shall be consistent with safety and with all local, city, county, and state rules and regulations,
includingall current fire codes, and orders of the Federal Aviation Administration with respect to
aircraft operations at the Airport. AATC shall be subject to the Airport's "Minimum Standards for
Commercial Aeronautical Activities at Drake Field' which are incorporated herein by reference
thereto and made a part hereof as if set out word for word. The City warrants and covenants unto
AATC that no hazardous or any other substances, as defined m40 CFR 302, exist on the demised
premises which are restricted, prohibited or penalized by an "Environmental Law", which term shall
mean any federal, state or local law, regulation or ordinance relating to pollution or protection of the
environment. If any testing or study discloses the existence of an hazardous substances on the
demised premises that are determined to have been present on the demised premises pnor.to the
execution of this Lease, it shall be the City's responsibility to timely arrange and pay for any costs
associated with environmental testing and /or studies, remedial action; cleaning up or removing the
hazardous substances to a proper disposal site in accordance with all applicable laws and the
governmental agency having jurisdiction thereof.
9. The City authorizes AATC to use the premises for the implementation and conducting
of an Aviation Maintenance Technology Program, mcluding but not limited to, the provision of such
1 IF
training and educational components as are required for an airframe and power plant certification by
the Federal Aviation Administration under FAR 147. Subject to the prior wntten approval of the
City, which shall not be unreasonably withheld; AATC shall also have the right to use the demised
premises for other purposes ancillary or related to AATC's operations Aircraft, aircraft components
and sub -components, vehicles, equipment, materials and or supplies necessary to the training
program may be stored on the demised premises. AATC further agrees to store flammable material
only in approved containers, and not to violate the provisions of the City's standard commercially
available property damage insurance pohcy. Any such violations shall constitute a material breach of
this agreement.
10. If the demised premises are partially damaged by fire or other casualty which is not
due to the negligence or fault of AATC, said premises shall be repaired with due diligence by the
City at the City's expense. If the damage is so extensive as to render such building untenable, the
rent payable hereunder shall be proportionally paid up to the time of such damage and shall
thenceforth cease until such time as the premises shall be fully restored. If the demised premises are
completely destroyed, the City may reconstruct the hangar at the City's own cost and the rent payable
hereunder shall be adjusted as set forth above, or either the City or AATC may at its option, cancel
this agreement, such cancellation to be effective as of the date the hangar was destroyed, and the rent
adjusted as set forth above.
11. The City shall procure and maintain inforce during the term of this Agreement fire
and extended coverage on the facility in an amount equivalent to the replacement cost thereof.
AATC shall be required to insure any contents within the facility.
"4'"
During the term of this agreement AATC shall at all times maintain general public
liability insurance m the amount of $1,000,000.00. AATC shall file with the City's Airport Manager
Certificates of Insurance evidencing the insurance covet -age required hereby.
12. AATC agrees to indenuufy the City against any liability for injuries to persons or
damage to property caused by AATC's gross negligent use or occupancy of the leased premises;
provided, however, that AATC shall not be liable for any injury, damage or loss occasioned by the
negligence. of the City 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.
13. Improvements: The City shall bear the cost of maintenance of the basic building
structure area including, but not limited to: (i) floors, walls, ceiling and roof; (ii) sprinkler system;
(iii) all plumbing and fittings thereto; (iv) primary electrical circuits; (v) heating, ventilation and air
conditioning (HVAC); (vi) maintenance of existing paved ramp and parking lots; and (vii) existing
perimeter fences. AATC shall bear the cost of all improvements or additions made to the mterior of
the building for new classrooms and /or labs. No improvements or additions to any part of the leased
premises shall be made by Lessee without the prior wntten approval of the Airport Manager. Any
signs to be erected on or attached to the leased premises must have the prior written approval of the
Airport Manager and conform to all City ordinances:
14. Maintenance: The City shall beresponsible only for major maintenance of the
existing equipment, i.e. replacement of heating umt and other equipment installed by the City which
1 r
includes roof, extenor walls and extenor plumbing, HVAC, existing paved ramp, and paved parking
lots. The City agrees that if the roof or any part of the exterior walls or exterior plumbing of said
building thereof shall become defective or damaged at any time during the term due to ordinary wear
and tear and not due to negligence of the AATC, or AATC's agents or invitees, upon notice from
AATC, the City will immediately cause repairs to be made and restore the defective portions to good
condition. Routine maintenance of the garage aircraft doors shall remain the responsibility of the
City.
15. If AATC fails to make any payment due hereunder within thirty (30) days of the date
on which such payment is due, The City may, at its option, terminate. this Agreement and take
possession of so much of AATC's personal property as is reasonably necessary to secure payment of
the amount due and unpaid. The City shall also have the right to terminate this Agreement in the
event Lessee breaches any other terms of this Agreement: provided, however, no breach shall be
deemed to exist unless AATC fails to cure said breach within thirty (30) days after receipt of written
notice thereof. As to curing of a breach (other than the payment of rent) which would reasonably
require a greater period of time for curing than is provided for above, if AATC shall, within the time
stipulated, commence such curing and diligently pursue same, then the above time period shall be
extended to allow AATC reasonable opportunity to complete said cure.
16. On the expiration or other termination of this Lease, AATC's right to use the demised
premises shall cease, and AATC shall vacate the premises without unreasonable delay. All
permanent interior structures installed, erected, or placed by AATC in, on, or about the premises
leased hereunder shall remain the property of the City.
17. The City may enter the premises leased to AATC at any reasonable time for any
purpose necessary or incidental to the performance of its obligation.
18. AATC shall maintain the demised premises m a clean and orderly fashion at all times.
19. AATC shall not start or operate aircraft engines within the facility leased hereby and
shall not allow such operations by any other person.
20. AATC shall not at any time assign this lease or sublet the demised premises without
the prior written consent of the City.
21. • Any notice or consent required by this Agreement shall be sufficient if sent. by
Certified Mail, return receipt requested, postage paid, to the following address:
LESSOR: Airport Administration Office
4500 S. School, Suite F
Fayetteville, Arkansas 72701
PH: 479-718-7642
LESSEE: Executive Director
Arkansas Aviation Technologies Center
4248 S. School Avenue
Fayetteville, Arkansas 72701
PH: 479443-2283
23. This Agreement shall be construed under the laws of the State of Arkansas_.
24. • All the covenants, conditions, and provisions under this agreement shall extend to
and bind the legal representatives, successors, and assigns of the respective parties
hereof.
IN WITNESS WHEREOF, the parties have executed this Lease on the day and year first
above written:
CITY OF FAYETTEVILLE, ARKANSAS
At 1'EST:
By:
Title: Di,2Eeree eF flg0977
an Coody, Mayor
ARKANSAS < VIATION TECH I LOGIES CENTER:
Bv: /
slay
Title: 1 ? k7('D.r/eaccim
c
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, ' Rall
items groups, subgroups and special groups, "published monthly in the Monthly Labor Review ofthe
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 Legge. 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, adjusted as appropriate to the applicable dates.
From: Clarice Pearman
To: Boudreaux, Ray
Subject: Res. 01-06
Ray,
Attached is a copy of the above resolution passed by City Council, January 3, 2006. I have also attached
a copy of the agreement.
Thanks.
Clarice
CC: Bell, Peggy; Deaton, Vicki
Ray M. Boudreaux
Submitted By
buy or rayeueVme
Staff Review Form
City Council Agenda Items
or
Contracts
1/3/2006
City Council Meeting Date
Aviation & Economic Development Airport
Division •
0/-0,d6
,4.41/54,5
/,4 hien 7Zch/lo%,
Department
Action Required:
Approve an Assignment of Lease agreement to transfer the lease with Arkansas Aviation Technology Center to the 1
Northwest Arkansas Community College.
REVENUE
54,000.00
Cost of this request
5550.0955.4450.00
Account Number
Project Number
Budgeted Item
X
4.42,!{rs--
Category / Project Budget -• 201b4
-- i
Funds Used to Date
Remaining Balance -2o•L
Budget Adjustment Attached
Chgs - Sery
Program Category / Project Name
Airport Revenue
Program / Project Category Name
Airport
Fund Name
Department Director
City Attorney
Financd andTnternal Service Director
Mayor
'Comments:
/L
/Z //40.X
Da
tIVI&Pr
D to
Date
Previous Ordinance or Resolution # 103-02
Original Contract Date:
Original Contract Number:
7/3/2002
Received in City Clerk's Office
u0Q9