HomeMy WebLinkAbout47-20 RESOLUTIONF FAYETT
9RKANSPS
113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Resolution: 47-20
File Number: 2020-0034
ALPINE AVIATION:
A RESOLUTION TO APPROVE A THREE YEAR LEASE AGREEMENT WITH ALPINE AVIATION
OF FAYETTEVILLE, INC. FOR HANGAR SPACE IN THE AIRPORT TERMINAL BUILDING AT
4166 SOUTH SCHOOL AVENUE FOR RENT IN THE AMOUNT OF $700.00 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 Alpine Aviation of Fayetteville, Inc., a copy of which is attached to this
Resolution and made a part hereof, for hangar space in the Airport Terminal Building located at 4166
South School Avenue for rent in the amount of $700.00 per month.
PASSED and APPROVED on 2/4/2020
Attest:
ERK
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CITY •;9�'•�
Kara Paxton, City Clerk TreasureE �<<f
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Page 1 Printed on 216120
City of Fayetteville, Arkansas 113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Text File
File Number: 2020-0034
Agenda Date: 2/4/2020 Version: 1 Status: Passed
In Control: City Council Meeting File Type: Resolution
Agenda Number: A. 10
ALPINE AVIATION:
A RESOLUTION TO APPROVE A THREE YEAR LEASE AGREEMENT WITH ALPINE AVIATION
OF FAYETTEVILLE, INC. FOR HANGAR SPACE IN THE AIRPORT TERMINAL BUILDING AT
4166 SOUTH SCHOOL AVENUE FOR RENT IN THE AMOUNT OF $700.00 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 Alpine Aviation of Fayetteville, Inc., a copy of which is attached to this Resolution and made a
part hereof, for hangar space in the Airport Terminal Building located at 4166 South School Avenue for rent in
the amount of $700.00 per month.
City of Fayetteville, Arkansas Page 1 Printed on 2/5/2020
City of Fayetteville Staff Review Form
2020-0034
Legistar File ID
2/4/2020
City Council Meeting Date - Agenda Item Only
N/A for Non -Agenda Item
Summer Fallen 1/14/2020 AIRPORT SERVICES (760)
Submitted By Submitted Date Division / Department
Action Recommendation:
Airport -Staff requests a resolution to approve and allow the Mayor to sign a corporate lease agreement between
the City of Fayetteville and Alpine Aviation of Fayetteville, Inc.
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
Fund
Project Title
$
V20180321
Purchase Order Number: Previous Ordinance or Resolution #
Change Order Number:
Original Contract Number:
Comments:
Approval Date:
CITY OF
WCD FAYETTEVILLE
ARKANSAS
W
MEETING OF FEBRUARY 4, 2020
TO: Mayor Lioneld Jordan and City Council
THRU: Susan Norton, Chief of Staff
FROM: Summer Fallen, Airport Services Manager
DATE: January 14, 2020
CITY COUNCIL MEMO
SUBJECT: Alpine Aviation of Fayetteville, Inc Corporate Hangar lease
RECOMMENDATION:
Staff requests a resolution to approve and allow the Mayor to sign a corporate hangar lease
agreement between the City of Fayetteville and Alpine Aviation of Fayetteville, Inc.
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:
Alpine Aviation of Fayetteville, Inc would like to lease the South side of the building for aircraft
maintenance.
BUDGET/STAFF IMPACT:
This lease will provide $8,400 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
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This LEASE AGREEMENT made this day of , 2020, by and
between the City of Fayetteville, Arkansas, hereinafter called "City", afid Alpine Aviation of
Fayetteville, Inc, C/O Jim Benton, 126 N Industrial Park Rd, Prairie Grove, AR 72753, 479-236-
5462, hereinafter called "Alpine Aviation of Fayetteville, Inc"
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, Alpine Aviation of Fayetteville. Inc 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:
I. City leases to Alpine Aviation of Fayetteville. Inc, and Alpine Aviation of Fayetteville, Inc
leases from City, the corporate aircraft hangar located at 4166 S. School Ave., Fayetteville,
Arkansas,
2. Alpine Aviation of Fayetteville. Inc 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. Alpine Aviation of Favetteville. Inc 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 Alpine Aviation of
Fayetteville. Inc, its employees, customers, passengers, guests, and other invitees. Such rights
shall also extend to persons or organizations supplying materials or furnishing services to Al i11 e,
Aviation of Fayetteville. Inc.
4. Term: Subject to earlier termination as hereinafter provided, the initial term of this agreement
shall be for Three (3) years commencing on the I st day of February 2020, and ending
on the -11 st day of January . 2023.
This Lease Agreement may be terminated by either party with a thirty (30) day written notice.
5. Rent: Alpine Aviation of Fgyettex e. Inc agrees to pay the City for the use of the premises,
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facilities, rights, and privileges granted hereunder the sum of Seven Hundred Dollars ($700.00)
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 In 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 Alpine Aviation of Fayetteville. Inc. Alpine Aviation of Fayetteville. Inc
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. Alpine Aviation of Fayetteville. Inc 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: Alpine Aviation of Fayetteville. Inc 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 Alpine Aviation of Fayetteville,
kc 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 Alpine Aviation of Fayetteville. -Inc, or Alpine
Aviation of rayetteville. Inc agents or invites, upon notice from Alpine Aviation of Fayetteville,
nc 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.
Alpine Aviation of Fayetteville. Inc shall not make any alterations to the controls of the hangar
doors.
10. Alpine Aviation of Fayetteville, Inc 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
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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 Alpine-Aviation of Fayetteville. Inc's aircraft at the Airport.
"The Minimum Standards for Fayetteville Exectitive Airport, Drake Field" herein referred to as
Airport Minimum Standards are made part of this lease by reference as if included word for word.
IL Use of Leased Premises: Alpine Aviation of Fayetteville. Inc agrees that it shall use the
premises for the implementation and conducting of an aeronautical business activity. Aloine
Aviation of Fayetteville. Inc 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 shalt be stored on the premises unless
expressly agreed to by the City. spine Aviation of Fayetteville. Inc 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 11EQUIRED
Alpine Aviation of Fayetteville, Inc 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. Alpine Aviation of Fayetteville, Inc 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: Alpine Aviation of Fayetteville. Inc 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 Alpine Aviation of Fayetteville. Inc is responsible or legally
liable, Alpine Aviation of Fayetteville. Inc 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 tosses 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 Alpine Aviation of Fa etteville Inc, Alpine
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Aviation of Fayetteville. Inc 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 the Alpine Aviation of Fayetteville, Inc, 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. Alpine Aviation of Fayetteville. Inc 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, Alpine Aviation of Fayetteville. Inc 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 seif-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. Alpine Aviation of Fayetteville, Inc 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 Alpine Aviation
Fayetteville. Inc s use or occupancy of the lease premises; provided, however, that Alpine Aviation
ofFayetteville, Inc 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. Alaine Aviation of Fayetteville, Inc agrees that it will not discriminate against any person or
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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. spine Aviation of Fayetteville. Inc 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 Alpine
Aviation of Fayetteville. Inc's creditors or otherwise by operation of law shall not be effective to
transfer or assign Alpine Aviation of Fayetteville. Inc's interest under this Agreement unless the
Airport shall have first consented thereto in writing. Neither Alpine Aviation of Fayetteville, Inc's
interest in this Agreement, not any estate created hereby in Alpine Aviation of Fayetteville. Inc
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 Alpine Aviation of Fa, etteville. Inc
are transferred, or if any partnership interests of Alpine Aviation of Fayetteville. Inc 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 Alpine Aviation of Fayetteville.
Jpg, same shall be deemed an assignment for the purposes of this Section 17 and shall require the
Airport's prior consent, and Alpine Aviation of Fayetteville. Inc shall notify the Airport of any
such change or proposed change.
18. On the expiration or other termination of this lease Alpine Aviation of Fayetteville. Inc's right
to use the demised premises shall cease, and Alpine Aviation-of-Fayetteville, Inc shall vacate the
premises without unreasonable delay. All property installed, erected, or placed by Alpine Aviation
of Fayetteville. Inc in, on, or about the premises leased hereunder shall be deemed to be personal
property and shall remain the property of Alpine Aviation of Fayetteville. Inc. Alpine Aviation of
Fayetteville. Inc 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 Alpine
Aviation of Fayetteville. Inc's obligation to repair all damage, if any, resulting from such removal.
Any and all property not removed by Alpine Aviation of Fayetteville. Inc 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 Alpine Aviation of Fayetteville_ Inc at any
reasonable time for any purpose necessary or incidental to the performance of its obligations or
Alaine Aviation of Fayetteville. Inc obligations hereunder.
20. Alpine Aviation of Fayetteville. Inc shall maintain the Leased Premises in a clean and orderly
fashion at all times. Alpine Aviation of Fayetteville. Inc shall be responsible for the upkeep and
mowing of the leased property.
21. Alpine Aviation of Fayetteville. Inc shall not start or operate aircraft engines within the aircraft
hangar leased hereby and shall not allow such operations by any other person.
22. spine Aviation of Fgyetteyille. Inc 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
ALPINE AVIATON, LLC
c/o Jim Benton
126 N Industrial Park Rd
Prairie Grove, Arkansas 72753
Phone: (479) 236-5462
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 L ase on the day and year first above
written.
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CITY
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Kara Paxton, City Clerk Treasurer
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