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Home My WebLink About35-17 RESOLUTIONe �RA'Af1S F. 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 35-17 File Number: 2017-0038 SANDERS CREST, INC.: A RESOLUTION TO APPROVE A ONE YEAR LEASE AGREEMENT WITH AN OPTION TO RENEW FOR THREE ADDITIONAL ONE YEAR TERMS WITH SANDERS CREST, INC. FOR OFFICE SPACE IN THE AIRPORT TERMINAL BUILDING IN THE AMOUNT OF $780.16 PER MONTH FOR THE FIRST YEAR 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 one year lease agreement, a copy of which is attached to this Resolution, with an option to renew for three additional one year terms, with Sanders Crest, Inc. for office space in the Airport Terminal building in the amount of $780.16 per month for the first year. PASSED and APPROVED on 2/7/2017 Page 1 Attest: 1 � . f'4a�4 V'14 . Sondra E. Smith, City Clerk Treasurer l FAYETTEVII.Lf-; "WA N51P flf*;11C O N tib► Printed on 2/8/17 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 t Text File File Number: 2017-0038 Agenda Date: 2/7/2017 Version: 1 Status: Passed In Control: City Council Meeting File Type: Resolution Agenda Number: A. 5 SANDERS CREST, INC.: A RESOLUTION TO APPROVE A ONE YEAR LEASE AGREEMENT WITH AN OPTION TO RENEW FOR THREE ADDITIONAL ONE YEAR TERMS WITH SANDERS CREST, INC. FOR OFFICE SPACE IN THE AIRPORT TERMINAL BUILDING IN THE AMOUNT OF $780.16 PER MONTH FOR THE FIRST YEAR 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 one year lease agreement, a copy of which is attached to this Resolution, with an option to renew for three additional one year terms, with Sanders Crest, Inc. for office space in the Airport Terminal building in the amount of $780.16 per month for the first year. City of Fayetteville, Arkansas Page 1 Printed on 21812017 I Terry Gulley Submitted By City of Fayetteville Staff Review Form 2017-0038 Legistar File ID 2727 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 1/19/2017 Aviation / Transportation Services Department Submitted Date Division / Department Action Recommendation: Staff recommends approval and signature of the Mayor on a lease agreement with Sanders Crest Inc., Contact: Ken Sanders, PO Box 157, Greenland, AR 72737, (479) 200-3319, to use office space in the Terminal Building. Budget Impact: Account Number Fund Project Number Project Title Budgeted Item? NA Current Budget $ Funds Obligated $ Current Balance Does item have a cost? NA Item Cost Budget Adjustment Attached? NA Budget Adjustment Remaining Budget V20140710 Previous Ordinance or Resolution # Original Contract Number: Approval Date: Comments: CITY OF Fay% —11e ARKANSAS MEETING OF FEBRUARY 7, 2017 TO: Mayor Lioneld Jordan Fayetteville City Council THRU: Don Marr, Chief of Staff CITY COUNCIL AGENDA MEMO FROM: Terry Gulley, Transportation Services Director DATE: January 19, 2017 SUBJECT: Sanders Crest, Inc. Terminal Building Lease Agreement RECOMMENDATION: Staff recommends approval and signature of the Mayor on a lease agreement between the City of Fayetteville and Sanders Crest Inc. BACKGROUND: Sanders Crest currently occupies this office space. DISCUSSION: This lease renewal is structured to bring the tenant to the minimum square footage cost set by the Airport Board over the three-year term agreement. BUDGET/STAFF IMPACT: This lease will provide $9,361.92 in revenue to the airport per year. Attachments: SRF SRM Terminal Building Lease Agreement Exhibit A -Terminal Building Layout Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 TERMINAL BUILDING LEASE AGREEMENT LESSEE NAME: Sanders Crest Inc., Billing Address: PO Box 157 Greenland, AR 72737 Email: Social Security Number: (or) Tax I.D. Number: Home Ph: Work Ph: Cell Ph: 479-200-3319 Emergency Contact: Emergency Ph: Date of Birth: This Lease is executed this 1',1 day of March, 2017, by and between the City of Fayetteville, 113 W. Mountain Street, Fayetteville; Arkansas 72701, hereinafter called the City, and Sanders Crest, Inc. hereinafter called Sanders Crest, Inc., 1. Leased Premises. The City leases to Sanders Crest, Inc., and Sanders Crest, Inc., leases from the City, terminal office space, located at 4500 S. School Avenue, Fayetteville, Arkansas, as reflected on Exhibit "A" attached hereto and make a part hereof. Leased Premise shall be for Sanders Crest, Inc., exclusive use. 2. Lease Terns. Subject to earlier termination as hereinafter provided; the initial term of this Agreement shall be for a period of 1 year. The City or Sanders Crest, Inc., may terminate this lease at anv time by giving the other party thirty (30) days written notice of termination. 3. Rental Fees. During the term of this lease, Sanders Crest Inc., agrees to pay the City for the use of the premises the sum of $780.16 per month for one year, starting with March, 2017, rent. The initial lease payment is due and payable upon the execution of this Lease Agreement, and all subsequent monthly lease payments shall be due and payable in advance on or before the first day of each calendar month thereafter. This Lease may be extended for three 3 renewal options of one year in accordance with the following procedure: At least 60 days prior to the scheduled termination date, the City shall give Sanders Crest, Inc., written notice of the monthly rent payable in the extended term, at least 30 days prior to the term expiration date, Sanders Crest, Inc., shall give the City written notice if Sanders Crest Inc., exercises this option to extend. Rental will increase at the renewal of the Lease .93 per sq ft per year until minimum charge of 9.50 per sq. ft. is reached. Once minimum is reached the rental increase will be in accordance with the CPI plus 1 % (formula at Attaelunent 1). In addition to any remedy available to it hereunder, the City may impose as additional rent a delinquency charge on all overdue payments, at the maximum rate allowed by law. 4. Utilities, Maintenance and Janitorial Services. A. By the City: The City shall be responsible for the payment of the utilities associated with Sanders Crest, Inc., water, sewer, lights, heating and cooling. The city shall maintain and keep in good repair so much of the Airport premises as is not under the exclusive control of individual Sanders Crest, Inc., The.City shall provide janitorial services only for all areas used in common by Airport Terminal tenant. The City shall not be responsible for; or pay for any expense which might arise due to, the installation and / or removal of equipment used in Sanders Crest, Inc., business operation or signs. 'B. By Tenant: Sanders Crest, Inc., shall be responsible for the installation, relocations, modification and maintenance of all utility service other than that necessary to provide water, sewer, light, heat or air to the Leased Premises. Sanders Crest, Inc., shall maintain Leased Premises in a clean, orderly, and attractive condition: not allow the accumulation of rubbish; trash, or other waste material on the Lease Premises and provide for and supply all janitorial service for their exclusive use area. Sanders Crest, Inc., shall place any materials or trash in trash receptacles. Written approval from the Airport Director must be obtained prior to any improvements or additions to any part of the Leased Premises, or the installation of any attachment to the building (i.e. antennas, tower or signs). Any signs installed shall meet all of the City's Sign Regulations, and furthermore; any sign erected on, or attached, to the Lease Premises must have the prior written approval of the Airport Director. S. Hazardous Substances. Sanders Crest, Inc., shall not cause or permit any Hazardous Substance to be used, stored, generated or disposed of on or in the Leased Premises, or in any Airport Drainage system. If the Airport property becomes contaminated in any manner due Sanders Crest, Inc., actions, Sanders Crest, Inc., shall indemnify and Hold Harmless the Airport from any and all claims, including a decrease in value of the Airport property. 6. Insurance. Sanders Crest, Inc., shall provide the following: A. Workman's Compensation Insurance, as required by Arkansas Law. B. Insurance on the contents within the Lease Premises at all times during the term hereof, in amounts approved by the Airport Director. 2 ra C. A Certificate of Insurance shall be furnished to The City, naming The City as additional insured. Sanders Crest, Inc., shall indemnify, protect, defend and Hold Completely Harmless, The City and their trustees from and against all liability, losses, suits, claim judgments, fines or demands arising from injury or death of any person or damage to any property; including all reasonable costs for investigation and defense thereof (including attorney fees, court costs, and expert fees), of any nature whatsoever arising out of or incident to this Lease, Sanders Crest, Inc., use or occupancy of the Airport Premises, the rights, licenses, or privileges granted Sanders Crest, Inc., herein, or the acts or omissions of Sanders Crest, Inc., agents, employees, regardless of where the injury, death or damage may occur. The City shall give notice to Sanders Crest, Inc., of any such liability; loss, suit, claim or demand, and Sanders Crest, Inc., shall defend same using counsel reasonably acceptable to The City. No word, sentence, paragraph or phrase shall be construed to waive that tort immunity set forth under Arkansas Law. - 7. Use of Airlort Sanders Crest, Inc., is granted the use of two designated parking spaces and, in common with other Airport terminal tenants, of the Airport terminal building and grounds together with all facilities, equipment, improvements, and services which have been or may hereafter be provided. Sanders Crest, Inc., agrees to observe and obey the 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, State, and federal ordinances, rules and regulations. Sanders Crest, Inc., agrees to abide by the rulings of the Federal Aviation Administration with respect to the use of the Leased Premises. "The Allinimum Standards . for Fayetteville Municipal Airport, Drake Field" herein referred to as Airport's Minimum Standards at the Fayetteville Municipal Airport are made part of this lease by reference as if included word for word. Sanders Crest, Inc., agrees to use the premises only for a business office for Sanders Crest, Inc., . Any business other than the business office for, Sanders Crest, Inc., shall require the Airport Director's approval. Sanders Crest, Inc., will obtain and keep in force all certifications, permits and licenses required for the operation of the business office. Sanders Crest, Inc., further agrees not to store any flammable material on the premises or in any way endanger or violate the provision of FayettevillCs property insurance policy or the requirements of same. Such violations shall constitute a material breach of this lease. Upon termination of the Lease Sanders Crest, Inc., will leave all premises used in the same or better conditions as existed at the initiation of the Lease. 8. Rights of Ingress and Egress. Sanders Crest, Inc., shall have full and free right of ingress to and egress from the Leased Premises for Sanders Crest, Inc., its employees, customers, guests, and other invitees except as reserved below. Such rights shall also extend to persons or organizations supplying materials or furnishing services to Sanders Crest, Inc., The City 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 Sanders Crest, Inc.,. The City may enter the Leased Premises at any reasonable time for any purpose necessary or incidental to the performance of City's obligations hereunder. Sanders Crest, Inc., shall take reasonable measures to insure that the conduct of their business does not adversely affect their neighbors or the common areas of the building. Excessive or objectionable noise, odors, or light fixtures shall not be allowed to escape from the premises. 9. Events of Default. The following shall be event of default under the lease. and include and one or more of the following: A. Non-payment of the rental amount. B. If Sanders Crest, Inc., transfers, subleases or assigns, either voluntarily or by operation of law, any portion of its interest in this Lease. C. Sanders Crest, Inc., voluntarily abandons, deserts, or vacates the Leased Premises. D. Sanders Crest, Inc., shall fail to comply with insurance requirements. 10. Termination. A. The City or Sanders Crest, Inc., may terminate this lease at any time by giving the other party thirty (3 0) days written notice of termination. B. On the expiration or other termination of this lease, Sanders Crest, Inc., right to use the Leased Premises shall cease, and Sanders Crest, Inc., shall vacate the premises without unreasonable. delay. All property installed, erected, or placed by Sanders Crest, Inc., in, on; or about the premises leased hereunder shall be deemed to be personal property and shall remain the property of Sanders Crest, Inc.,. Sanders Crest, Inc., shall have the right at any time during the term of this lease, or any renewal or extension thereof, and for an additional period of fourteen (14) days after the expiration of other termination of this Lease, to remove any or all of such property, subject, however to Sanders Crest, Inc., obligation to repair all damage, if any, resulting from such removal. Any and all property not removed by Sanders Crest, Inc., prior to the expiration of the aforesaid fourteen (14) day period shall thereupon become a part of the premises on which it is located and title hereto shall thereupon vest in The City or The City may require removal and restoration by Sanders Crest, Inc.,. 11. Assi nines Subletting and Encumbering, Sanders Crest, Inc., shall not sublet the Leased Premises, not permit other persons to occupy the Leased Premises, not grant any license or concession for any part of the. Leased Premises, or assign its rights under this Lease without the written consent of The City. No such subletting or assignment shall release Sanders Crest, Inc., from its obligations to pay the rental set forth herein. 12. Mailing and Notice. Any notice or consent required by this Lease shall be sufficient if sent by Certified Mail, return receipt required, postage paid, to the following address: Cl CITY OF FAYETTEVILLE Airport Administration Office 4500 S. School Ave., Suite F Fayetteville, AR 72701 Phone 479-718-7642 ,17 13. Nondiscrimination. Sanders Crest, Inc., agrees that it will not, on the grounds of race, color, or national origin, discriminate or permit discrimination against any person or group of persons. Sanders Crest, Inc., will assure compliance with all regulations in regard to Non-discrimination and Affirmative Action. Sanders Crest, Inc., acknowledges that it is the policy of the Airport that it shall not discriminate on the basis of race, color, national origin, or sex in the award and performance of all Airport contracts. IN WITNESS WHEREOF, the parties have executed this Lease on the day and year first above written. Sanders Crest Inc. t'ai_ds. ,has received a copy of the Airport s Minimum St nant's initi is) ATTEST: c_q"T l Date By: Com, 7-9-/7 Sondra Smith, City Clerk and Treasurer Date Date Title" S ��tt�tft4C 1'rR r''''.ri ; FAYETfEViLLf-;"� 'r, ;rte gA�RCI`-�`'� � r�r''• I W 4; n� 0