HomeMy WebLinkAbout04-19 RESOLUTION113 West Mountain Street
Fayetteville, AR 72701
(479)575-8323
Resolution: 04-19
File Number: 2018-0738
SKYDIVE FAYETTEVILLE, LLC - 276 SQUARE FEET:
A RESOLUTION TO APPROVE A THREE YEAR LEASE AGREEMENT WITH SKYDIVE
FAYETTEVILLE, LLC FOR OFFICE SPACE IN THE AIRPORT TERMINAL BUILDING IN THE -
AMOUNT OF $241.00 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 Skydive Fayetteville, LLC for
approximately 276 square feet of office space in the Airport Terminal building for rent in the amount of
$241.00 per month.
PASSED and APPROVED on 1/3/2019
Attest:
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Sondra E. Smith, City le`,l;t���
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Page 1 Printed on 114119
City of Fayetteville, Arkansas 113 West Mountain Street
Fayetteville, AR 72701
a (479) 575-8323
Text File
File Number: 2018-0738
Agenda Date: 1/3/2019 Version: 1 Status: Passed
In Control: City Council Meeting File Type: Resolution
Agenda Number: A. 5
SKYDIVE FAYETTEVILLE, LLC - 276 SQUARE FEET:
A RESOLUTION TO APPROVE A THREE YEAR LEASE AGREEMENT WITH SKYDIVE
FAYETTEVILLE, LLC FOR OFFICE SPACE IN THE AIRPORT TERMINAL BUILDING IN THE
AMOUNT OF $241.00 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 Skydive Fayetteville, LLC for approximately
276 square feet of office space in the Airport Terminal building for rent in the amount of $241.00 per month.
City of Fayetteville, Arkansas Paye 1 Printed on 11412019
Summer Fallen
Submitted By
City of Fayetteville Staff Review Form
2018-0738
Legistar File ID
1/3/2019
City Council Meeting Date - Agenda Item Only
N/A for Non -Agenda Item
12/10/2018 AIRPORT SERVICES (760)
Submitted Date .Division / Department
Action Recommendation:
Staff recommends approval and signature of the Mayor on a lease agreement with Skydive Fayetteville, LLC, 4500 S
School Ave Ste. G, Fayetteville, AR 72701, (479) 270-8855, for office space in the terminal building.
Account Number
Project Number
Budgeted Item? NA
Does item have a cost? NA
Budget Adjustment Attached? NA
Budget Impact:
Current Budget
Funds Obligated
Current Balance
Item Cost
Budget Adjustment
Remaining Budget
Fund
Project Title
$ -
0
V20180321
Purchase Order Number: Previous Ordinance or Resolution #
Change Order Number: Approval Date:
Original Contract Number:
Comments:
CITY OF
FAYETTEVILLE
ARKANSAS
MEETING OF DECEMBER 18, 2018
TO: Mayor Lioneld Jordan
Fayetteville City Council
THRU: Don Marr, Chief of Staff
FROM: Summer Fallen, Airport Manager
DATE: December 10, 2018
SUBJECT: Skydive Fayetteville, LLC lease agreement
CITY COUNCIL MEMO
RECOMMENDATION:
Staff recommends approval and signature of the Mayor on a lease agreement between the City
of Fayetteville and Skydive Fayetteville, LLC for office space in the terminal building.
BACKGROUND:
Skydive Fayetteville, LLC would like to lease office space in the terminal building to provide
skydiving services at the airport. This office is approximately 276 square feet and will be used
as a store front where the business is able to meet and train customers on proper skydiving
techniques.
DISCUSSION:
Skydiving continues to be successful at this airport. Due to their success, Skydive Fayetteville,
LLC would like to renew their lease.
BUDGET/STAFF IMPACT: This lease will provide $240 a month for a total of $2,880.00 in
revenue to the airport annually.
Attachments:
Staff Review Form
City Council Memo
Lease Agreement
Mailing Address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701
LEASE AGREEMENT
This LEASE AGREEMENT made this day o w _, 2019, by and
between the City of Fayetteville, Arkansas, hereinafter called "City", a d Skydive Fayetteville,
LLC, 4500 South School Ave Suite G, Fayetteville, AR 7270, 479-270-8855.
WHEREAS, City is the owner of an airport known as the Fayettdville Airport, Drake Field, herein
referred to as the "Airport"; and
WHEREAS, City is the owner of office space at the Airport; and
WHEREAS, Skydive Fayetteville, LLC desires to lease said office space,
NOW, THEREFORE, the parties, in consideration of the mutual covenants contained herein.
hereby agree as follows:
1. City leases to Skydive Fayetteville, LLC, and Skydive Fayetteville, LLC leases from City,
approximately 276 sq. ft. of office space in the Terminal Building located at 4500 S. School Ave.
Fayetteville, Arkansas.
2. Skydive Fayetteville, LLC 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. Skydive Fayetteville, LLC 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 Skydive Fayetteville, LLC, its
employees, customers, passengers, guests, and other invitees. Such rights shall also extend to
persons or organizations supplying materials or furnishing services to Skydive Fayetteville, LLC.
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 3rd day of January , 2019, and ending
on the 3rd day of January, 2022.
This Lease Agreement may be terminated by either party with a thirty (30) day written notice.
5. Rent: Skydive Fayetteville, LLC agrees to pay the City for the use of the premises, facilities,
rights. and privileges granted hereunder the sum of: TWO -HUNDRED FORTY-ONE DOLLARS
PER MONTH ($241.00) 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 sc 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 Skydive Fayetteville LLC. Skvdive Fayetteville, LLC 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. Skydive Fayetteville LLC shall provide for and supply at its expense all janitor service with
respect to the demised premises.
8. Improvements: Skydive Fayetteville, LLC 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 Skydive Fayetteville, LLC 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 Skydive Fayetteville, LLC, or Skydive
Fayetteville, LLC`s agents or invites, upon notice from Skydive Fayetteville, LLC, 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. Skydive Fayetteville,
LLC shall not make any alterations to the controls of the hangar doors.
10. Skydive Fayetteville, LLC 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 fire codes, and orders of the Federal Aviation Administration with respect to
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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 Sk dive
Fayetteville, LLC'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. Skydive Fayetteville, LLC agrees that it shall use the premises for the implementation and
conducting of an aeronautical business activity. Skydive Fayetteville, LLC 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. Skydive
Fayetteville, LLC 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: Skydive Fayetteville, LLC 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 Skydive Fayetteville, LLC is responsible or legally liable,
Skydive Fayetteville, LLC 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 term hereof and arising as a result
of that contamination by Skydive Fayetteville, LLC, Skydive Fayetteville, LLC 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 Skydive Fayetteville, LLC; 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. Skydive Fayetteville, LLC 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, Skydive Fayetteville, LLC 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. Skydive Fayetteville, LLC 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 Skydive Fayetteville, LLC's
use or occupancy of the lease premises; provided, however, that Skydive Fayetteville, LLC 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. Skydive Fayetteville, LLC agrees that it will not discriminate by segregation or otherwise
against any person or, 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. Skydive Fayetteville, LLC 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
Skydive Fayetteville, LLC's creditors or otherwise by operation of law shall not be effective to
4
transfer or assign Skydive Fayetteville, LLC's interest under this Agreement unless the Airport
shall have first consented thereto in writing. Neither Skydive Fayetteville, LLC's interest in this
Agreement, not any estate created hereby in Skydive Fayetteville, LLC 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 Skydive Fayetteville, LLC are transferred, or if any partnership
interests of Skydive Fayetteville, LLC 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 Skydive Fayetteville, LLC, same shall be deemed an assignment for the purposes
of this Section 17 and shall require the Airport's prior consent, and Skydive Fayetteville, LLC
shall notify the Airport of any such change or proposed change.
18. On the expiration or other termination of this lease Skydive Fayetteville, LLC's right to use
the demised premises shall cease, and Skydive Fayetteville, LLC shall vacate the premises
without unreasonable delay. All property installed, erected, or placed by Skydive Fayetteville,
LLC in, on, or about the premises leased hereunder shall be deemed to be personal property and
shall remain the property of Skydive Fayetteville, LLC. Skydive Fayetteville, LLC 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 terniination of this
agreement, to remove any or all of such property, subject, however, to Skydive Fayetteville,
LLC's obligation to repair all damage, if any, resulting from such removal. Any and all property
not removed by Skydive Fayetteville, LLC 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 Skydive Fayetteville, LLC at any reasonable time for
any purpose necessary or incidental to the performance of its obligations or Skydive Fayetteville,
LLC's obligations hereunder.
20. Skydive Fayetteville, LLC shall maintain the demised premises in a clean and orderly fashion
at all times. Skydive Fayetteville, LLC shall be responsible for the upkeep and mowing of the
leased property.
21. S_k_ydive Fayetteville, LLC shall not start or operate aircraft engines within the aircraft hangar
leased hereby and shall not allow such operations by any other person.
22. Skydive Favetteville, LLC 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
Airport Administration Office
4500 S. School Avenue, Suite F
Fayetteville, Arkansas 72701
Phone: (479) 718 -7642
SKYDIVE FAYETTEVILLE, LLC AVIATION
Skydive Fayetteville, LLC
4500 South School Street
Fayetteville, Arkansas 72701
Phone: (479) 530-5241
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.
Skydive Fayetteville, LLC
By:
Corporator
ATTEST e ��
By: d/I
Sondra Smith, City Clerk and
,:1
FAYETTEVILLE;�
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