HomeMy WebLinkAbout159-17 RESOLUTION113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Resolution: 159-17
File Number: 2017-0404
JETT AIRCRAFT, LLC AND M.K. ROCKWELL INVESTMENTS, LLC LEASE AGREEMENT:
A RESOLUTION TO APPROVE A THREE YEAR LEASE AGREEMENT WITH JETT AIRCRAFT, LLC
AND M.K. ROCKWELL INVESTMENTS, LLC FOR THE HANGAR LOCATED AT 4568 S. SCHOOL
AVENUE AND OFFICE SPACE IN THE AIRPORT TERMINAL BUILDING 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, a copy of which is attached to this Resolution, with Jett Aircraft, LLC and M.K. Rockwell
Investments, LLC for the 18,750 square foot hangar located at 4568 S. School Avenue and 2,260 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 8/15/2017
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Attest:
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Sondra E. Smith, City Clerk Treasurer
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Page 1 Printed on 8/18/17
City of Fayetteville, Arkansas 113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Text File
File Number: 2017-0404
Agenda Date: 8/15/2017 Version: 1 Status: Passed
In Control: City Council Meeting File Type: Resolution
Agenda Number: A. 3
JETT AIRCRAFT, LLC AND M.K. ROCKWELL INVESTMENTS, LLC LEASE
AGREEMENT:
A RESOLUTION TO APPROVE A THREE YEAR LEASE AGREEMENT WITH JETT AIRCRAFT,
LLC AND M.K. ROCKWELL INVESTMENTS, LLC FOR THE HANGAR LOCATED AT 4568 S.
SCHOOL AVENUE AND OFFICE SPACE IN THE AIRPORT TERMINAL BUILDING IN THE
AMOUNT OF $4,200.00 PER MONTH
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE,
ARKANSAS:
Section l: That the City Council of the City of Fayetteville, Arkansas hereby approves a three year lease
agreement, a copy of which is attached to this Resolution, with Jett Aircraft, LLC and M.K. Rockwell
Investments, LLC for the 18,750 square foot hangar located at 4568 S. School Avenue and 2,260 square
feet of office space in the Airport Terminal building for rent in the amount of $4,200.00 per month.
City of Fayetteville, Arkansas Page 1 Printed on 8/16/2017
City of Fayetteville Staff Review Form
2017-0404
Legistar File ITS
8/15/2017
City Council Meeting Date - Agenda Item Only
N/A for Non -Agenda Item
Terry Gulley 7/19/2017 Aviation /
Transportation Services Department
Submitted By Submitted Date Division / Department
Action Recommendation:
Staff recommends approval and signature of the Mayor on a lease agreement between the City of Fayetteville and
Jett Aircraft, LLC & M.K. Investments for office space in the terminal building and corporate hangar space.
Budget Impact:
Account Number Fund
Project Number Project Title
Budgeted Item? NA Current Budget $
Funds Obligated $
Current Balance j
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
FA,YETTEVILLE
ARKANSAS
MEETING OF AUGUST 15, 2017
TO: Mayor Lioneld Jordan
Fayetteville City Council
THRU: Don Marr, Chief of Staff
FROM: Terry Gulley, Transportation Services Director
DATE: July 19, 2017
CITY COUNCIL MEMO
SUBJECT: Jett Aircraft, LLC and M.K. Investments Lease Agreement
RECOMMENDATION:
Staff recommends approval and signature of the Mayor on a lease agreement between the City
of Fayetteville and Jett Aircraft, LLC & M.K. Investments for office space in the terminal building
and corporate hangar space.
BACKGROUND:
Jett Aircraft, LLC & M.K. Investments would like to lease office space and hangar space to
operate a charter aircraft service.
DISCUSSION:
Jett Aircraft, LLC & M.K. Investments will be utilizing vacant office space and corporate hangar
space for their Part 135 operation.
BUDGET/STAFF IMPACT:
This lease will provide $50,400 in revenue to the airport annually.
ATTACHMENTS:
SRF
SRM
Lease Agreement
Exhibit A
Mailing Address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701
LEASE AGREEMENT
This LEASE AGREEMENT made this —to day of _h koltb , 20171 by and
between the City of Fayetteville, Arkansas, hereinafter called "Ciq", and Jett Aircraft, LLC, 275
Harvey Dowell Road, Fayetteville, AR 72701, 479-841-4262, and M.K. Rockwell Investments,
LLC, 2035 Riverfront Lane, Fayetteville, AR 72703, 501-412-8343 hereinafter jointly referred
to as "Jett Aircraft and M.K. Rockwell Investments."
WHEREAS, City is the owner of an airport known as the Fayetteville Airport, Drake Field, herein
referred to as the "Airport"; and
WHEREAS, City is the owner of an aircraft hangar and office space at the Airport; and
WHEREAS, Jett Aircraft and M.K. Rockwell Investments_ desire 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:
1. City leases to Jett Aircraft and M.K. Rockwell Investments , and Jett Aircraft and M.K.
16el -w0l Investments lease from City, approximately 18,750 sq. ft.. of corporate hangar space
located at 4568 S. School Ave., Fayetteville, Arkansas and 2,260 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. Jett Aircraft and M.K. Rockwell Investments are 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. Jett Aircraft and M.K. Rockwell Investments shall have at all times the fill and free right in
ingress to and egress from the leased premises and facilities referred to herein for Jett Aircraft
and M.K. Rockwell Investments, its employees, customers, passengers, guests, and other
invitees. Such rights shall also extend to persons or organizations supplying materials or
furnishing services to .lett Aircraft and M.K. Rockwell Investments.
4. Term: Subject to earlier termination as hereinafter provided, the initial term of this agreement
shall be for THREE YEARS (3) year(s) commencing on the 1St day of August, 2017, and
ending on the 31st day of July, 2020.
This Lease Agreement may be terminated by either party with a sixty (60) day written notice.
5. Rent: Jett Aircraft and M.K. Rockwell Investments agree to pay the City for the use of the
premises, facilities, rights, and privileges granted hereunder the sum of: FOUR THOUSAND
TWO HUNDRED DOLLARS PER MONTH -($4,2001 pger month. Rent will increase annually in
accordance with the Consumer Price Index (CPI) plus l % after the first year.
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 I" 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 Jett Aircraft and M.K. Rockwell Investments. Jett Aircraft and M.K.
Rockwell Investments 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. Jett Aircraft and M.K. Rockwell Investments shall provide for and supply at its expense all
janitorial services with respect to the leased premises, and shall pay for all utilities serving the
corporate hangar space, including, but not limited to heat, light, gas, electricity, and water, sewer
and trash removal. City shall pay for all utilities serving the terminal building space including, but
not limited to, heat, light, gas, electricity, water, sewer and trash removal.
8. Improvements: ,Tett Aircraft and M.K. Rockwell Investments 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 Jett Aircraft
and M.K. Rockwell Investments 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 Jett Aircraft and M.K. Rockwell
Investments, or Jett Aircraft and M.K. Rockwell Investments agents or invites, upon notice
from Jett Aircraft and M.K. Rockwell Investments, 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 leased 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. Jett Aircraft and M.K. Rockwell Investments shall not
make any alterations to the controls of the hangar doors.
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10. Jett Aircraft and M.K. Rockwell Investments agree to observe and obey City's Ordinances
and Regulations with respect to use of the leased 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 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 Jett Aircraft and M.K. Rockwell Investments 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. Jett Aircraft and M.K. Rockwell Investments agree that they shall use the premises for the
implementation and conducting of an aeronautical business activity. Jett Aircraft and M.K.
Rockwell Investments agree that they 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. Jett Aircraft and M.K. Rockwell Investments further agree not to store
any flammable material on the leased 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: Jett Aircraft and M.K. Rockwell Investments 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 .lett Aircraft and M.K. Rockwell Investments
are responsible or legally liable, Jett Aircraft and M.K. Rockwell Investments 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 or usable space as a part of the Leased Premises arising during or
after the terin hereof and arising as a result of that contamination by Jett Aircraft and M.K.
.Rockwell Investments, Jett Aircraft and M.K. Rockwell Investments 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 leased premises are partially damaged by fire or other casualty which is not due to the
negligence or fault of Jett Aircraft and M.K. Rockwell Investments, 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 leased 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. Jett Aircraft and M.K. Rockwell Investments shall maintain in force during the Term and
any extended term public liability 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, Jett Aircraft and M.K. Rockwell Investments
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. Jett Aircraft and M.K. Rockwell Investments agree 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 Jett Aircraft
and M.K. Rockwell Investments use or occupancy of the lease premises; provided, however, that
Jett Aircraft and M.K. Rockwell Investments 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. Jett Aircraft and M.K. Rockwell Investments agree 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. Jett Aircraft and M.K. Rockwell Investments
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 Jett Aircraft and M.K. Rockwell Investments' creditors or otherwise by operation of
law shall not be effective to transfer or assign Jett Aircraft and M.K. Rockwell Investments'
interest under this Agreement unless the Airport shall have first consented thereto in writing.
Neither Jett Aircraft and M.K. Rockwell Investments' interest in this Agreement, not any estate
created hereby in Jett Aircraft and M.K. Rockwell Investments 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. If any of the
corporate shares of stock of Jett Aircraft and M.K. Rockwell Investments are transferred, or if
any partnership interests of Jett Aircraft and M.K. Rockwell Investments 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 Jett Aircraft and M.K. Rockwell
Investments, same shall be deemed an assignment for the purposes of this Section 17 and shall
require the Airport's prior consent, and Jett Aircraft and M.K. Rockwell Investments shall
notify the Airport of any such change or proposed change.
18. -On the expiration or other termination of this lease Jett Aircraft and M.K. Rockwell
Investments right to use the leased premises shall cease, and Jett Aircraft and M.K. Rockwell
Investments shall vacate the premises without unreasonable delay. All property installed, erected,
or placed by Jett Aircraft and M.K. Rockwell Investments in, on, or about the premises leased
hereunder shall be deemed to be personal property and shall remain the property of Jett Aircraft
and M.K. Rockwell Investments. Jett Aircraft and M.K. Rockwell Investments shal I 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 Jett Aircraft and M.K. Rockwell
Investments' obligation to repair all damage, if any, resulting from such removal. Any and all
property not removed by Jett Aircraft and M.K. Rockwell Investments 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.
19. City may enter the premises leased to Jett Aircraft and M.K. Rockwell Investments at any
reasonable time for any purpose necessary or incidental to the performance of its obligations or
Jett Aircraft and M.K. Rockwell Investments' obligations hereunder.
20. Jett Aircraft and M.K. Rockwell Investments shall maintain the leased premises in a clean
and orderly fashion at all times. Jett Aircraft and M.K. Rockwell Investments shall be
responsible for the upkeep and mowing of the leased property.
21. Jett Aircraft and M.K. Rockwell Investments shall not start or operate aircraft engines
within the aircraft hangar leased hereby and shall not allow such operations by any other person.
22. Jett Aircraft and M.K. Rockwell Investments agree 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,
5
return receipt requested, postage paid, to the following address:
City of Fayetteville
Airport Administration Office
4500 S. School Ave., Suite F
Fayetteville, AR 72701
Jett Aircraft, LLC
275 South Harvey Dowell Road
Fayetteville, AR 72701
M.K. Rockwell Investments, LLC
2035 Riverfront Lane
Fayetteville, AR 72703
24. Joint and Several Liability of Lessees. LESSEES acknowledge that they are jointly and
severally liable for the obligations imposed on them by this agreement.
25. This agreement shall be construed under the laws of the State of Arkansas.
26. 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 FA
/VW0&IS N
JETT AIRCRAFT, LLC
By:
Lance Creamer
Owner
ARKANSAS
By: ! r
Sondra Smith; City Clerk and Treasurer
M.K. ROCKWELL INVESTMENTS, LLC
By:
Mark Rockwell
Owner
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