HomeMy WebLinkAbout75-15 RESOLUTIONRESOLUTION NO. 75-15
A RESOLUTION TO APPROVE A THREE YEAR LEASE AGREEMENT
WITH MAXSURGE HEALTHCARE SOLUTIONS, INC. FOR THE AIRPORT
HANGAR AT 4580 SOUTH SCHOOL AVENUE FOR A RENT OF $2,893.00
PER MONTH TO BEGIN RETROACTIVELY ON MARCH 1, 2015
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 approves a
three year lease agreement with MaxSurge Healthcare Solutions, Inc., a copy of which is
attached to this Resolution and made a part hereof, for the airport hangar at 4580 South School
Avenue for a rent of $2,893.00 per month to begin retroactively on March 1, 2015.
PASSED and APPROVED this 7' day of April, 2015.
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ATTEST:
SONDRA E. SMITH, City Clerk
FRYE-FrEVILLE •' =
City of Fayetteville, Arkansas 113 West Mountain Street
Fayetteville, AR 72701
p - (479) 575-8323
Text File
File Number: 2015-0148
Agenda Date: 4/7/2015 Version: 1 Status: Passed
In Control: City Council Meeting File Type: Resolution
Agenda Number: A. 9
NIAXSURGE HEALTHCARE SOLUTIONS, INC - AIRPORT HANGAR
A RESOLUTION TO APPROVE A THREE YEAR LEASE AGREEMENT WITH MAXSURGE
HEALTHCARE SOLUTIONS, INC. FOR THE AIRPORT HANGAR AT 4580 SOUTH SCHOOL
AVENUE FOR A RENT OF $2,893.00 PER MONTH TO BEGIN RETROACTIVELY ON MARCH
1, 2015
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 approves a three year lease
agreement with MaxSurge Healthcare Solutions, Inc., a copy of which is attached to this Resolution and
made a part hereof, for the airport hangar at 4580 South School Avenue for a rent of $2,893.00 per
month to begin retroactively on March 1, 2015.
City of Fayetteville, Arkansas Page 1 Printed on 1011312015
City of Fayetteville Staff Review Form
2015-0148
Legistar File ID
4/3/2015
City Council Meeting Date - Agenda Item Only
N/A for Non -Agenda Item
John Roscoe 3/11/2015 Aviation /
v Transportation Services Department
Submitted By Submitted Date Division/ Department
Action Recommendation:
Approval and signature of the Mayor on a three-year lease with MaxSurge Healthcare Solutions, Inc., c/o Dr. Scott
Bolding, 5229 St. Andrews Drive, Fayetteville, AR 72704, 479-957-4611, Cody@maxsurge.com
NA
Account Number
NA
Project Number
Budgeted item? NA
Budget Impact:
Current Budget
Funds Obligated
Current Balance
Does item have a cost? NA Item Cost
Budget Adjustment Attached? NA Budget Adjustment
Remaining Budget
Airport
Fund
NA
Project Title
S
V20140710
Previous Ordinance or Resolution #
Original Contract Number:
Comments: Will provide $34,716 annual revenue to the Airport.
Approval Date: il—L
CITY OF
1 7%Vle ay AS
MEETING OF APRIL 7, 2015
TO: Mayor and City Council
CITY COUNCIL AGENDA MEMO
THRU: Don Marr, Chief of Staff
Staff/Contract Review Committee
Terry Gulley, Transportation Director
FROM: John Roscoe, Airport Directo&____�
DATE: 3111115
SUBJECT: Airport Corporate Hangar Lease — MaxSurge Healthcare Solutions, Inc.
Legistar Item # 2015-0148
RECOMMENDATION:
Review and signature of the Mayor.
BACKGROUND:
The hangar located at 4580 S School Ave., is currently vacant. The former tenant, NFlight
Technologies, vacated the hangar at the end of 2014. NFlight had several sub -lessees who
continued paying rent to the Airport through February 2015.
MaxSurge Healthcare Solutions, Inc. is a healthcare consulting company who wishes to lease
the entire hangar for their aviation department. They anticipate growth in the future including
acquisition of additional aircraft. They currently operate a business class jet.
DISCUSSION:
The Airport recently conducted a rate study to determine a market rental rate for hangars and
offices at the Airport. The market rate for large "corporate hangars" was determined to be $3.00
— 3.50 sq ft per year. The Airport has offered MaxSurge the hangar at the rate, 3.25 sq ft, for
three years. At the expiration of the lease term, the lease rate will be re-evaluated and a new
lease negotiated.
BUDGET/STAFF IMPACT:
The building lease will provide $2,893 per month or $34,716 annual revenue to the Airport.
Attachments:
SRF, SRM,
Lease
Mailing Address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701
This LEASE AGREEMENT made this Ana day of MA rC 14 2015, by and
between the City of Fayetteville, Arkansas, hereinafter called "City", and MaxSurge Healthcare ..
Solutions, Inc., C/O Dr: Scott Bolding, 5229 St Andrews Drive,. Fayetteville, AR 72704,479-957-
4611, hereinafter called'"MaxSurge."
WHEREAS., City is the: owner of an airport known as the Fayetteville Executive Airport, Drake
Field, herein referred to as the "Airport'-"; and
WHEREAS, City is the owner of an aircraft hangar at the Airport; and
• WHEREAS, MaxSur� desires to lease said corporate aircraft hangar
NOW, THEREFORE,, the parties, in consideration of the mutual covenants contained herein,
hereby: agree as follows:' '
1. City leases to MaxSurge, and MaxSurge leases from City, the corporate aircraft hangar located
at 4580 S. School Ave. Fayetteville. Arkansas, as reflected on "Exhibit A" attached hereto and
made a part hereof.
2. MaxSurge is granted the use, in common with others ..similarly :authorized, of the airport,
together with all . facilities,.. equipment, improvements,_ and services which have been, or, may
hereafter,be provided at;or in connection with the Airport from time to time including,: but not
limited to, the landing field,. and any, extensions hereof or additions - thereto, roadways, runways,
ramps, aprons, taxiways, flood lights, landing lights, beacons, control tower, signals, radio aids,
and all other conveniences for flying, landings and take -offs.
3. MaxSurge shall have at all times the full and free right in ingress to. and egress. from the demised
• premises and .facilities' .referred to - herein. for MaxSurae, its employees, customers, passengers,
guests,: and other ,invitees.. Such rights shall also extend to °persons or organizations supplying.
materials or furnishing services to MaxSurga.
4. Term: Subject to earlier termination as hereinafter provided, the initial term of this agreement
shall be for Three (3) year(s) commencing on the IIt day of March , 2015, and ending
on the 28th day of February 2018.
This Lease Agreement may terminated by either party with a thirty (30) day written notice:
5. Refit: MaxSurge agrees to pay the City for the use of the premises, facilities,, rights, and
privileges granted hereu rider the sum of: Two. Thousand, Eight.Hundred and Ninety Three dollars
($2893.00) per month.
The initial lease payment is due. and payable upon execution of this Lease Agreement, and all.
subsequent monthly lease payments shall be payable in advance on, or before, the 1$t day of each
month. In addition to any remedy available to it hereunder, the City may impose as additional
rentals a delinquency charge on all overdue payments, at the maximum rate allowed by law.
6. City shall .maintain and keep in good repair so much of the Airport premises as .are not under
the exclusive control of MaxSurge.- MaxSurgc shall at the termination, surrender or forfeiture of
this lease,return said premises in same or better condition premises were at the beginning of the
lease, normal wear and tear excepted.
7: MaxSurae shall provide for and supply at its expense all janitor service with respect to the
demised premises, and shall pay for all utilities serving the demised premises, including, but not
limited to heat, light, gas, electricity, and water, sewer and trash removal.
8:. 'Improvements: MaxSurge shall =bear- the cost of all improvements or additions - made to the
-interior or exterior of the building on the leased. premises. Noimprovements or additions to any
part of the leased premises shall be made by MaxSurae without the prior written approval of the
Airport Manager,' whose consent will not be unreasonably withheld. Any signs or antennas 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.
9. Maintenance: The City shall be responsible only for major maintenance of the existing
equipment, i.e. replacement of heating unit and other equipment in place in the facility which
includes,' roof;.: hangar- door motors, . exterior walls, exterior plumbing,paved ramp and paved
parking lot. 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 MaxSurge, or MaxSurgc's agents or invites,
upon notice from MaxSurge, the City will immediately cause repairs to be made and restore the
defective portions to good condition. 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 ceaseuntil such time as the premises shall be fully restored. If the demised
premises are completely destroyed, City may reconstruct the hangarat the City's own cost and the
rent payable hereunder shall be adjusted as setforth above, or City may, at its option, cancelthis
agreement, such cancellation to: be effective as of the date the hangar was destroyed, and the rent
adjusted as - "set' forth above. Routine maintenance of thehangar doors shall remain the
responsibility of the City. MaxSurge shall not make any alterations to the controls of the hangar
doors.
10. MaxSurge agrees to observe and obey City's Ordinances and Regulations with respect to use
of .the .demised, premises and Airport; provided, however, such Ordinances and Regulations shall
be consistent with safety and with all city, county, and state rules, regulations; including all current
firecodes, and. orders of the Federal Aviation Administration with respect to aircraft operations at
= 2'
the Airport,. and provided further, such Ordinances and Regulations shall be consistent with the
provisions of this agreement or the procedures prescribed or approved from time to time by the
Federal, Aviation Administration with respect to the . operation of MaxSurge's.. aircraft at the:
Airport.
"The Minimum Standards for Fayetteville Executive Airport, Drake Field" herein referred to as
Airport Minimum Standards are made part of this lease by reference as if included word for word.
11. MaxSurae agrees that it shall use the premises for the implementation and conducting of an
aeronautical business activity. MaxSurge agrees that it shall use the premises only for the storage
of airplanes; and materials and equipment necessarily related to theoperationof said aeronautical
business' activity and that no othervehicles, equipment or supplies shall be- stored on the premises.
unlessexpressly. agreed to m by the City:.. MaxSurge further agrees . not to store any flammable
material on' the demised premises,' other than a limited supply of oils and agents necessary for -
current aircraft maintenance and repair, or in any way endanger or violate the provisions of the
City's standard commercially available property insurance policy or the requirements of same.
Such violations shall constitute a material breach of this Agreement.
12. Hazardous Substance: MaxSurge shall not cause or permit any Hazardous. Substance to be.
used or stored on or in the. Leased Premises without first obtaining the City'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 MaxSurge is responsible or legally liable, MaxSurge shall indemnify and hold harmless the
City, its officers, directors, agents, servants, and employees from any and all claims, damages,
fines, judgments, penalties, costs, liabilities, or losses including all reasonable costs for
investigation and defense thereof, (including but not limited to attorney's fees, court costs,. and
expert fees; and without limitation, decrease -in value of the Lease Premises, damages caused by
doss or restriction of rentable or usable space as a part of the Leased Premises arising during or
afterthe term hereof and arising as a result of that contamination byMaxSurae, MaxSurge agents,
employees, and invitees: This .indemnificationincludes, without limitation, all cost incurred,
because of any investigation of the Airport or any cleanup, removal, or restoration mandated bya
federal, state, local agency or political subdivision.
13. If the demised premises are partially damaged by fire or other casualty which is not due to the
negligence or fault of the MaxSurae, said premises shall be repaired with due diligence by City at
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, City may reconstruct the hangar at the City's own cost- and the. rent payable hereunder
shall be adjusted as set forth above, or City 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.
specified in the Airport Minimum Standards. The insurance shall be issued by an insurer licensed
to do business in the State of Arkansas.
Concurrent with - the execution of this Agreement, MaxSurge shall provideproof of insurance
coverage by providing a Certificate of Lessee's Insurance coverage, a copy of the declarations
page on the insurance policy, and a copy of all endorsements. -The Certificates of Insurance, or
endorsements•attached thereto, shall provide that; (a) insurance coverage shall not be canceled,
changed in coverage, or reduced in limits without at least thirty (30) days prior written notice to
the City: (b) the City and the Airport and their trustees, agents, officers, servants, and employees
are named as additional insured: (c) the policy shall be considered primary as regards to. any other
insurance coverage the City may possess, including any self -insured retention or deductible the
City mayhave, and any other insurance coverage the City may possess shall be considered excess
insurance ,;only, .(d) the limits of liability required therein are on an occurrence basis.
15. MaxSurge agrees to indemnify City against any and all liabilities, losses, suits, claims;
judgments, fines, penalties, demands or expenses, including all reasonable costs for investigation
and defense thereof, (including but not limited to attorney's fees, court costs, and expert fees, for
injuries to persons or damage to property caused by MaxSurgee's use or occupancy of :the lease
premises; provided, however, that MaxSurge shall not be liable for. any injury, damage or loss
arising from the, negligence of.: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 affectsor might` affect either party, and each party shall have the -right to
compromise and defend the' same .to the extent of its own interest. This clause shall not be
construed to waive that tort immunity as set forth under Arkansas Law.
16. MaxSurge agrees that it will not discriminate by segregation or otherwise against any person
-.or persons because of race, creed, color, religion, national origin, sex, marital status, or handicap
in the, furnishing, or by refusing to furnish, to such persons the use of any facility, including any
and all services, privileges, accommodations, and activities provided thereby. Nothing herein shall
require, the furnishing to the general public of the use of any facility customarily furnished by the
City solely to .tenants, their employees,customers, patients, client, guests, and invites.
17. Assigning, Subletting and Encumbering. MaxSurge shall not assign this Agreement in whole
or in part, nor sublease all or any part of the Leased Premises, nor permit other persons to occupy
said Leased Premises or any part thereof, not grant any license or concession for all or any part of
said Leased Premises, :without the prior written consent of the Airport Manager, which consent
shall not be :unreasonably: withheld.. Any consent by the Airport to an assignment or subletting of
this Agreement shall not constitute a waiver of thenecessity of obtaining that consent as to any
subsequent assignment. Any assignment for the benefit of MaxSurge's creditors or otherwise by
operation of law shall- not be. effective to transfer or assign MaxSurgee's interest under this
Agreement unless the Airport shall have first consented thereto in writing. Neither MaxSurge's
interest in this Agreement, not any estate created hereby in MaxSurge nor any interest herein or
therein, shall pass to any trustee or receiver or assignee for the benefit of creditors or otherwise by
operation of law except as may specifically be provided in the Bankruptcy Code. I€ any of the
corporate shares of stock of MaxSurge are transferred, or if any partnership mterestss of MaxSurge
4
are transferred, by sale, assignment, bequest, inheritance, operation of law, or otherwise, so as to
result in a change of the control, assets, value, ownership, or structure of MaxSurge, same shall be
deemed an assignment for the purposes of this Section 17 and shall require the Airport's prior
consent,. and MaxSur e_e" shall notify. the Airport of any such change or proposed change.
18. On the expiration or other termination of this lease MaxSurge's right to use the demised
premises shall cease, and MaxSurge shall vacate the premises without unreasonable delay. " All
property installed, erected, or placed by MaxSurge in, on, or about the premises leased hereunder
shall be deemed to be personal property and shall remain the property of MaxSurge. MaxSurge
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 fourteen (14) days after the expiration or other termination
of this agreement,; to remove any or all of such property, subject; however, to MaxSurge's
`obligation to repairall damage, if any, resulting from such removal... Any and all property not
removed by MaxSurge prior to the expiration of the aforesaid fourteen (14) day period shall
thereupon become a part of the land on which itislocated and title hereto shall thereupon vest in:
City.
19. City may enter the premises leased to MaxSurge at any reasonable time for any purpose
necessary or incidental to the performance of its obligations or MaxSurge's obligations hereunder.
20;: Max
shall maintain the demised premises in a clean and orderly fashion at all times.
MaxSurge shall be responsible. for the upkeep and mowing of the leased property.
21. MaxSur a shall not start or operate aircraft engines within the aircraft hangar leased. hereby
and shall not allow such operations by any other person.
22. MaxSurge agrees that habitation of the hangar building as a residence is prohibited.
23. 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:
CITY OF FAYETTEVILLE MAXSURGE
Airport Administration Office MaxSurge Healthcare Solutions, Inc.
4500 S. School Avenue, Suite F 5229 St Andrews Dr.
Fayetteville, Arkansas 72701 Fayetteville, Arkansas 72704
Phone:. 718-7642 Phone: (479) 957-4611
..24. This agreement shall be. construed under the laws of the State of Arkansas:
25. All the covenants, conditions, and provisions under this agreement shall extend to and bind
the legal representative, successors, and assigns of the respective parties hereof.
.5
ATTEST
By: J"
Sondra Smith, City Clerk. and TreM Fi'yi,.:
!
FAYET-EY._,