HomeMy WebLinkAbout76-19 RESOLUTION113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Resolution: 76-19
File Number: 2019-0156
ATLAS INTERIORS, LLC:
A RESOLUTION TO APPROVE A ONE YEAR LEASE AGREEMENT WITH ATLAS INTERIORS,
LLC FOR THE SOUTH SIDE OF THE CORPORATE HANGAR LOCATED AT 4166 SOUTH
SCHOOL AVENUE IN THE AMOUNT OF $850.00 PER MONTH WITH A REQUIREMENT TO
PROVIDE CERTAIN MINIMUM AIRCRAFT MAINTENANCE SERVICES
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 authorizes Mayor Jordan to
sign the attached Lease Agreement with Atlas Interiors, LLC for the south side of the corporate hangar
located at 4166 South School Avenue in the amount of $850.00 per month with a requirement to provide
certain minimum aircraft maintenance services.
PASSED and APPROVED on 4/2/2019
Page 1
Attest:
Sondra E. Smith, City Clerk TrAV4, Y a `�'G•,��
: FAYETTEVILLE &
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City of Fayetteville, Arkansas 113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Text File
File Number: 2019-0156
Agenda Date: 4/2/2019 Version: 1 Status: Passed
In Control: City Council Meeting File Type: Resolution
Agenda Number: A. 3
ATLAS INTERIORS, LLC:
A RESOLUTION TO APPROVE A ONE YEAR LEASE AGREEMENT WITH ATLAS INTERIORS,
LLC FOR THE SOUTH SIDE OF THE CORPORATE HANGAR LOCATED AT 4166 SOUTH
SCHOOL AVENUE IN THE AMOUNT OF $850.00 PER MONTH WITH A REQUIREMENT TO
PROVIDE CERTAIN MINIMUM AIRCRAFT MAINTENANCE SERVICES
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 authorizes Mayor Jordan to sign
the attached Lease Agreement with Atlas Interiors, LLC for the south side of the corporate hangar located at
4166 South School Avenue in the amount of $850.00 per month with a requirement to provide certain
minimum aircraft maintenance services.
City of Fayetteville, Arkansas Page 1 Printed on 4/3/2019
Summer Fallen
Submitted By
City of Fayetteville Staff Review Form
2019-0156
Legistar File ID
4/2/2019
City Council Meeting Date - Agenda Item Only
N/A for Non -Agenda Item
3/6/2019 AIRPORT SERVICES (760)
Submitted Date Division / Department
Action Recommendation:
Staff requests a resolution to approve and allow the Mayor to sign a corporate hangar lease agreement between
the City of Fayetteville and Atlas Interiors, LLC.
Budget Impact:
Account Number
Project Number
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
Purchase Order Number:
Change Order Number:
Original Contract Number:
Comments:
Fund
Project Title
0
Previous Ordinance or Resolution #
Approval Date:
V20180321
CITY OF
FAYETTEVILLE
ARKANSAS
MEETING OF APRIL 2, 2019
TO: Mayor Lioneld Jordan and City Council
THRU: Don Marr, Chief of Staff
FROM: Summer Fallen, Airport Services Manager
DATE: March 6, 2019
SUBJECT: Atlas Interiors, LLC Corporate Hangar lease
CITY COUNCIL MEMO
RECOMMENDATION:
Staff requests a resolution to approve and allow the Mayor to sign a corporate hangar lease
agreement between the City of Fayetteville and Atlas Interiors, LLC.
BACKGROUND:
The corporate hangar is at 4166 S School Ave., Fayetteville, AR 72701. It is currently
unoccupied. Hangar will be used for aircraft maintenance.
DISCUSSION:
Atlas Interiors, LLC would like to lease the South side of the building for aircraft maintenance.
BUDGET/STAFF IMPACT:
This lease will provide $10,200 in revenue annually to the airport.
Attachments:
Staff Review Form
City Council Memo
Corporate Hangar Lease Agreement
Exhibit A
Mailing Address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701
LEASE AGREEMENT
This LEASE AGREEMENT made this 10day of U ' , 2019, by and
between the City of Fayetteville, Arkansas, hereinafter called `City", and Atlas Interiors, LLC,
C/O Christopher Rose, 1511 Eve Street North, Mena, AR 71953, 479-234-5290, hereinafter called
"Atlas Interiors, LLC"
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 the City desires to be used to
provide general aviation maintenance services which are identified by the City as a high priority;
and
WHEREAS, Atlas Intcrlors, LLC desires to lease said corporate aircraft hangar and provide
general aviation maintenance services in addition to its current services.
NOW, THEREFORE, the parties, in consideration of the mutual covenants contained herein,
hereby agree as follows:
1. City leases to Atlas Interiors,_ LLC, and Atlas Interiors, LLC leases from City, the corporate
aircraft hangar located at 4166 S. School Ave., Fayetteville, Arkansas.
2. Atlas Interiors, 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. Atlas Interiors, 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 Atlas Interiors, LLC, its employees,
customers, passengers, guests, and other invitees. Such rights shall also extend to persons or
organizations supplying materials or furnishing services to Atlas Interiors, LLC.
4. Term: Subject to earlier termination as hereinafter provided, the initial term of this agreement
shall be for One (1) year commencing on the Zn day of ' 2019, and ending
on the 2'1!1 day of 2020
This Lease Agreement may be terminated by either party with a thirty (30) day written notice.
5. Rent: Atlas lnterior�. LLC agrees to pay the City for the use of the premises, facilities, rights,
and privileges granted hereunder the sum of: Eight Hundred and Fifty Dollars ($850.00) 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 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 Atlas Interiors, LLC. Atlas Interiors 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. Atlas Interiors LLC 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: Atlas Interiors. 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 Atlas Interiors 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, woof, 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 Atlas Interiors. LLC, or Atlas Interiors LLC 's
agents or invites, upon notice from Atlas Interiors 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 buildin 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. Atlas Interiors LLC shall not make any alterations to
the controls of the hangar doors.
10. Atlas Interiors 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
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
2
time to time by the Federal Aviation Administration with respect to the operation of Atlas
Interiors. 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. Use of Leased Premises: Atlas interiors LLC agrees that it shall use the premises for the
implementation and conducting of an aeronautical business activity. Atlas Interiors 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. Atlas
Interiors, LLC further agrees not to store any flammable material outside of an approved storage
container 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.
MINIMUM MAINTENANCE SERVICES REQUIRED
Atlas Interiors, LLC agrees that it shall also provide to aviation customers and tenants of Drake
Field, at a minimum, the following services: annual and 100 -hour inspections; oil changes; tire
repair and replacement; oxygen/nitrogen service; light engine and airframe maintenance; and any
type of unspecialized airframe and powerplant maintenance. Services shall be provided during
Atlas Interiors, LLC's normal business hours and on an on-call basis after normal business hours.
Atlas Interiors, LLC shall commence with providing these services within one hundred and twenty
(120) days of the effective date of this Lease Agreement. Failure to provide the required minimum
maintenance services within sixty days of the effective date of this Lease Agreement shall be
grounds to terminate the Agreement.
12. Hazardous Substances: Atlas Interiors, 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 Atlas Interiors, LLC is responsible or legally liable, Atlas Interiors, 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 Promises,
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 Atlas
Interiors, LLC, Atlas Interiors, [..LC 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 Fre or other casualty which is not due to the
negligence or fault of the Atlas Interiors 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. Atlas Interiors, 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, Atlas Interiors 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. Atlas lntcriors, .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 Atlas Interiors, LLC s use or
occupancy of the lease premises; provided, however, that Atlas Interiors 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. Atlas Interiors. LLC agrees that it will not discriminate 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.
0
17. Assigning, Subletting and Encumbering. Atlas Interiors, 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 City, 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 Atlas Interiors LLC's creditors or
otherwise by operation of law shall not be effective to transfer or assign Atlas Interiors LL.C's
interest under this Agreement unless the Airport shall have first consented thereto in writing.
Neither Atlas Interiors, LL 's interest in this Agreement, not any estate created hereby in Atlas
I nteriors. 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 Atlas_ Interiors, LLC are
transferred, or if any partnership interests of Atlas Interiors, 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 Atlas Interiors, LLC, same shall be deemed an
assignment for the purposes of this Section 17 and shall require the Airport's prior consent, and
Atlas Interiors, LLC shall notify the Airport of any such change or proposed change.
18. On the expiration or other termination of this lease Atlas Interiors. LLC's right to use the
demised premises shall cease, and .Atlas Interiors_ GLC shall vacate the premises without
unreasonable delay. All property installed, erected, or placed by Atlas Interiors. LLC in, on, or
about the premises leased hereunder shall be deemed to be personal property and shall remain the
property of Atlas Interiors, LLC. Atlas Interiors. 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 termination of this agreement, to remove any or all of such
property, subject, however, to Atlas Interiors, LLC's obligation to repair all damage, if any,
resulting from such removal. Any and all property not removed by Atlas Interiors. 1..LC 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 Leased Premises leased to Atlas Interiors, LLC at any reasonable time for
any purpose necessary or incidental to the performance of its obligations or Atlas Interiors. LLC's
obligations hereunder.
20. Atlas Interiors, LLC shall maintain the Leased Premises in a clean and orderly fashion at all
times. Atlas Interiors. LLC shall be responsible for the upkeep and mowing of the leased property.
21. Atlas Interiors, 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. Atlas Interiors, LLC 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
Airport Administration Office
4500 S. School Avenue, Suite F
Fayetteville, Arkansas 72701
Phone: (479) 718-7642
ATLAS INTERIORS, LLC
c/o Christopher Rose
1511 Eve Street North
Mena, Arkansas 71953
Phone: (479) 234-5290
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 F.
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ATTEST:
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ATLAS IN E F,1ORS, LLC;
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Witness:
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,ARKANSAS:
Sondra Smith, City Clerk Treasure;; y 0'� '•r��'�
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