HomeMy WebLinkAbout97-17 RESOLUTION OF FFYETTF
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4gKA NS rS
113 West Mountain Street
Fayetteville,AR 72701
(479) 575-8323
Resolution: 97-17
File Number: 2017-0215
SOUTH DELTA AVIATION, INC. THREE YEAR LEASE AGREEMENT:
A RESOLUTION TO APPROVE A THREE YEAR LEASE AGREEMENT WITH SOUTH DELTA
AVIATION, INC. FOR THE AIRPORT HANGAR AT 4568 SOUTH SCHOOL AVENUE AND OFFICE
SPACE IN THE AIRPORT TERMINAL BUILDING AT 4500 SOUTH SCHOOL AVENUE FOR RENT
IN THE AMOUNT OF $4,200.00 PER MONTH
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 South Delta Aviation, Inc., a copy of which is attached to this Resolution and made a part
hereof, for the airport hangar at 4568 South School Avenue and approximately 2,260.5 square feet of office
space in- the Airport Terminal Building for rent in the amount of$4,200.00 per month.
PASSED and APPROVED on 5/2/2017
Approv:c Attest:
0. A!A.ii9&A it L. 4,1 I 6.
Lionel. . .rdan, ayor Sondra E. Smith,City Clerk Treasu e�;«unng11
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:FAYETTEVILLE:
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Page 1 Printed on 5/1/17
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FpAY'ElT City of Fayetteville, Arkansas 113 West Mountain Street
Fayetteville,AR 72701
m 1 (479)575-8323
Text File
4RKANS PS .
File Number: 2017-0215
Agenda Date:5/2/2017 Version: 1 Status:Passed •
In Control:City Council Meeting File Type: Resolution
Agenda Number:A. 2 •
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SOUTH DELTA AVIATION,INC.THREE YEAR LEASE AGREEMENT:
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A RESOLUTION TO APPROVE A THREE YEAR LEASE AGREEMENT WITH SOUTH DELTA
AVIATION, INC. FOR THE AIRPORT HANGAR AT 4568 SOUTH SCHOOL AVENUE AND
OFFICE SPACE IN THE AIRPORT TERMINAL BUILDING AT 4500 SOUTH SCHOOL AVENUE
FOR RENT IN THE AMOUNT OF$4,200.00 PER MONTH
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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 South Delta Aviation, Inc., a copy of which is attached to this Resolution and made a
part hereof, for the airport hangar at 4568 South School Avenue and approximately .2,260.5 square feet
of office space in the Airport Terminal Building for rent in the amount of$4,200.00 per month. -
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City of Fayetteville,Arkansas Page 1 Printed on 5/1/2017
City of Fayetteville Staff Review Form
2017-0215 •
Legistar File ID
5/2/2017 •
City Council Meeting Date-Agenda Item Only
N/A for Non-Agenda Item
Terry Gulley 4/14/2017 Aviation/
Transportation Services Department
Submitted By Submitted Date Division/Department
• Action Recommendation:
Staff recommends approval and signature of the Mayor on a lease agreement with South Delta Aviation, Inc.,4248
South School Ave., Fayetteville,AR 72701(479) 935-4891, for the corporate hangar at Drake Field known as 4568
South School Avenue, and for terminal office space.
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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:
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CITY OF
aFieteVille CITY COUNCIL AGENDA MEMO
ARKANSAS
MEETING OF MAY 2, 2017
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TO: Mayor Lioneld Jordan
Fayetteville City Council
THRU: Don Marr, Chief of Staff
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FROM: Terry Gulley, Transportation Services Director
DATE: April 14, 2017 •
SUBJECT: South Delta Lease Agreement
RECOMMENDATION:
Staff recommends approval and signature of the Mayor on a lease agreement between the City
of Fayetteville and South Delta.
BACKGROUND:
South Delta operates an aircraft brokering and repair.business.
DISCUSSION: -.
• South Delta currently leases two other corporate hangars on the field.
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BUDGET/STAFF IMPACT:.
This lease will provide $50,400.00 in revenue to the airport per year.
Attachments:
SRF
. SRM ..
Corporate Hangar Lease Agreement
. Exhibit A-Corporate Hangar Layout
Mailing Address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville,AR 72701
LEASE AGREEMENT
This LEASE AGREEMENT made this AnA day of Mal , 2017, by and
between the City of Fayetteville, Arkansas,hereinafter called"City", and South Delta Aviation,
4248 S. School Street,Fayetteville,AR 72701,479-935-48910,hereinafter called"South Delta."
WHEREAS,City is the owner of an airport known as the Fayetteville Airport,Drake Field,herein
referred to as the"Airport"; and
WHEREAS, Cityis the owner of an aircraft hangar and office space at the Airport; and -
WHEREAS, South Delta desires to lease said corporate aircraft hangar and office space,
NOW, THEREFORE, the parties, in consideration of the mutual covenants contained herein,
hereby agree as follows:.
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1. City leases to South Delta, and South Delta leases from City, the 18,750 sq. ft. corporate
aircraft hangar located at 4568 S. School Ave.,Fayetteville,Arkansas,and approximately 2260.5
sq. ft. of.office space in the Terminal Building located at 4500 S. School Ave, Fayetteville,
Arkansas, as reflected on "Exhibit A"attached hereto and made a part hereof.
2. South Delta 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. South Delta 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 South Delta, its employees, customers,
passengers, guests, and other invitees. Such rights shall also extend to persons or organizations
supplying materials or furnishing services to South Delta.
4. Term: Subject to earlier termination as hereinafter provided,the initial term of this agreement
shall be for THREE YRS (3)year(s) commencing on the- 3rd day of May , 2017. and
ending on the 2nd day of May, 2020.
This Lease Agreement may be terminated by either party with a sixty(60)day written notice.
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5. Rent: South Delta agrees to pay the City for the use of the premises, facilities, rights, and
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privileges granted hereunder the sum of: FOUR THOUSAND, TWO HUNDRED DOLLARS
PER MONTH,($4,200.00)per month.Rent will increase in accordance with the CPI plus 1%after
the first and second year(s).
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 1st 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 South Delta. South Delta 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. South Delta 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: South Delta shall bear the cost of all improvements or additions made to the
interior or exterior of the building on the leased premises. No improvements or additions to any
part of the..leased premises shall be made by South Delta 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
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- _ 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 South Delta, or South Delta's agents or
invites, upon notice from South Delta, 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 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. Routine maintenance of the hangar doors shall remain the
responsibility of the City. South Delta shall not make any alterations to the controls of the hangar
doors.
10.South Delta 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
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fire codes, and orders of the Federal Aviation Administration with respect to aircraft operations at
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 South Delta'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. South Delta agrees that it shall use the premises for the implementation and conducting of an
aeronautical business activity. South Delta agrees that it shall use the premises only for the storage
of airplanes and materials and equipment necessarily related to the operation of said aeronautical
business activity and that no other vehicles,equipment or supplies shall be stored on the premises
unless expressly agreed to by the City. South Delta 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: South Delta 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 South Delta is responsible or legally liable,South Delta 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
loss or restriction of rentable oi usable space as a part of the Leased Premises arising during or
after the term hereof and arising as a result of that contamination by South Delta, South Delta
agents, employees, and invitees. This indemnification includes, without limitation, all cost
incurred because of any investigation of the Airport or any cleanup, removal, or restoration
mandated by a 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 South Delta, 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.
14. South Delta shall maintain in force during the Term and any extended term public liability
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and property damage insurance in comprehensive form as reasonably may be required by the City
and 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, South Delta shall provide proof 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 may have, 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. South Delta 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 South Delta's use or occupancy of the lease
premises;provided, however, that South Delta 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 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 as set forth under Arkansas Law.
16. South Delta 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. South Delta 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 the necessity of obtaining that consent
as to any subsequent assignment. Any assignment for the benefit of South Delta's creditors or
otherwise by operation of law shall not be effective to transfer or assign South Delta's interest
under this Agreement unless the Airport shall have first consented thereto in writing. Neither
South Delta's interest in this Agreement, not any estate created hereby in South Delta 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.
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If any of the corporate shares of stock of South Delta are transferred,or if any partnership interests
of South Delta 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 South
Delta, same shall be deemed an assignment for the purposes of this Section 17 and shall require
the Airport's prior consent, and South Delta shall notify the Airport of any such change or
proposed change.
18. On the expiration or other termination of this lease South Delta's right to use the demised
premises shall cease, and South Delta shall vacate the premises without unreasonable delay. All
property installed,erected,or placed by South Delta in,on,or about the premises leased hereunder
shall be deemed to be personal property and shall remain the property of South Delta. South
Delta 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 South Delta's
obligation to repair all damage, if any, resulting from such removal. Any and all property not
removed by South Delta prior to the expiration of the aforesaid fourteen (14) day period shall
thereupon become a part of the land on which it is located and title hereto shall thereupon vest in •
City. -
`,�'t9?,City;.may:enter the premises leased to South Delta at any reasonable time for any purpose
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necessary of.. incidental to the performance of its obligations or South Delta's obligations
•hereunder.
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• 20. South Delta shall maintain the demised premisesin a clean and orderly fashion at all times.
" 'South.Delta�shall be responsible for the upkeep and mowing of the leased property.
2l. Smitti'Delta shall not start or operate aircraft engines within the aircraft hangar leased hereby
.and shall not allow such operations by any other person.
22. South Delta agrees that habitation of the hangar building or offices 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 SOUTH DELTA AVIATION
Airport Administration Office South Delta
4500 S. School Avenue, Suite F 4248 South School Street
Fayetteville,Arkansas 72701 Fayetteville, Arkansas 72701
Phone: (479) 718 -7642 Phone: (479) 935-4891
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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.
IN WITNESS WHEREOF,the parties have executed this Lease on the day and year first above
written.
CITY OF 'LLE, • • NSAS
B
Lioneld J. d.., ,Mayor
ATTEST
By:
Sondra Smith, City Clerk and Treasurer
_ ```�tNtttt��►ry��i
South Delta `����c,RK i•
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By: Aakuda-r7-12.1A,, •
FAYETTEVILLE•
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