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HomeMy WebLinkAbout97-20 RESOLUTIONyOF F�ErTP L 4RKANSPS 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 97-20 File Number: 2020-0185 SOUTH DELTA AVIATION, INC.: A RESOLUTION TO APPROVE A THREE YEAR LEASE AGREEMENT WITH SOUTH DELTA AVIATION, INC. FOR THE AIRPORT HANGAR AT 4230 SOUTH SCHOOL AVENUE FOR RENT IN THE AMOUNT OF $1,387.80 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 4230 South School Avenue for rent in the amount of $1,387.80 per month. PASSED and APPROVED on 3/16/2020 Attest: �:��G • '\1Y FAYETTEVILLE •z= Kara Paxton, City Clerk Treasurer :;s /-ANS G TON .ti J. Page t Printed on 3/17/20 City of Fayetteville, Arkansas r. % Text File File Number: 2020-0185 Agenda Date: 3/16/2020 Version: 1 In Control: City Council Meeting Agenda Number: A. 11 SOUTH DELTA AVIATION, INC.: 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Status: Passed File Type: Resolution A RESOLUTION TO APPROVE A THREE YEAR LEASE AGREEMENT WITH SOUTH DELTA AVIATION, INC. FOR THE AIRPORT HANGAR AT 4230 SOUTH SCHOOL AVENUE FOR RENT IN THE AMOUNT OF $1,387.80 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 4230 South School Avenue for rent in the amount of $1,387.80 per month. City of Fayetteville, Arkansas Page 1 Printed on 3117/2020 City of Fayetteville Staff Review Form 2020$184^ O 19 X5 Legistar File ID 3/17/2020 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item Summer Fallen 2/24/2020 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 South Delta located at 4230 S School Ave. This is a lease renewal. The tenant currently occupies this space. 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 V20180321 Purchase Order Number: Previous Ordinance or Resolution # Change Order Number: Approval Date: Original Contract Number: Comments: CITY OF FAYETTEVILLE ARKANSAS MEETING OF MARCH 17, 2020 TO: Mayor Lioneld Jordan and City Council THRU: Susan Norton, Chief of Staff FROM: Summer Fallen, Airport Services Manager DATE: February 24, 2020 CITY COUNCIL MEMO SUBJECT: South Delta Aviation, Inc- 4230 S School Ave 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 South Delta Aviation, Inc. BACKGROUND: The corporate hangar is at 4230 S School Ave., Fayetteville, AR 72701. The tenant currently occupies this hangar. DISCUSSION: South Delta Aviation, Inc. would like to lease the hangar located at 4230 S School Ave for aircraft storage. BUDGET/STAFF IMPACT: This lease will provide $16,653.60 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 �= day of V_ C, k, , 2020, by and between the City of Fayetteville, Arkansas, hereinafter called "City", and South Delta Aviation, Inc. located at 4248 School Ave, Fayetteville, AR 72701, 479-935-4891, hereinafter called "South Delta Aviation." 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; and WHEREAS, South Delta Aviation desires to lease said corporate aircraft hangar NOW, THEREFORE, the parties, in consideration of the mutual covenants contained herein, hereby agree as follows: 1. City leases to South Delta Aviation, and South Delta Aviation leases from City, the corporate aircraft hangars located at 4248 School Ave, Fayetteville, Arkansas, as reflected on "Exhibit A" attached hereto and made a part hereof. 2. South Delta Aviation 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 Aviation 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 Aviation, 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 Aviation. 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 22nd day of February 2020, and ending on the 21 st day of February 2023. This Lease Agreement may be terminated by either party with a thirty (30) day written notice 5. Rent: South Delta Aviation agrees to pay the City for the use of the premises, facilities, rights, and privileges granted hereunder the sum of: Three Thousand Eighty-Four Dollars ($3084.00) per month. Rent will increase in accordance with a CPI + 1 % increase 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 Aviation. South Delta Aviation 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 Aviation 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 Aviation 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 Aviation 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 South Delta Aviation, or South Delta Aviation `s agents or invites, upon notice from South Delta Aviation, 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 Aviation shall not make any alterations to the controls of the hangar doors. 10. South Delta Aviation 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 2 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 South Delta Aviation'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 Aviation agrees that it shall use the premises for the implementation and conducting of an aeronautical business activity. South Delta Aviation 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 Aviation 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 Aviation 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 Aviation is responsible or legally liable, South Delta Aviation 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 South Delta Aviation, South Delta Aviation 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 South Delta Aviation, 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. 1.4. South Delta Aviation 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, South Delta Aviation 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 Aviation 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 Aviation s use or occupancy of the lease premises; provided, however.. that South Delta Aviation 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 Aviation 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 Aviation 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 Aviation's creditors or otherwise by operation of law shall not be effective to transfer or assign South Delta Aviation's interest under 'this Agreement unless the Airport shall have first 4 consented thereto in writing. Neither South. Delta Aviation's interest in this Agreement, not any estate created hereby in South Delta Aviation 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 lav except as may specifically be provided in the Bankruptcy Code. if any of the corporate shares of stock of South Delta Aviation are transferred, or if any partnership interests of South Delta Aviation 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 Aviation, same shall be deemed an assignment for the purposes of this Section 17 and shall require the Airport's prior consent, and South Delta Aviation shall notify the Airport of any such change or proposed change. 18. On the expiration or other termination of this lease South. Delta Aviation's right to use the demised premises shall cease, and South Delta Aviation shall vacate the premises without unreasonable delay. All property installed, erected, or placed by South Delta Aviation in, on, or •'C 'about the premises leased hereunder shall be deemed to be personal property and shall remain the • •property of South Delta Aviation. South Delta Aviation 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 Aviation's obligation to repair all damage, .if any, resulting from such removal. Any and all property not removed by South Delta Aviation prior to She expiration of the aforesaid fourteen (14) day period shall thereupon become a part of the land •'��,,,i„ 11"�op,which it is located and title hereto shall thereupon vest in City. 19. City may enter the premises leased to South Delta Aviation at any reasonable time for any purpose necessary or incidental to the performance of its obligations or South Delta Aviation's obligations hereunder. 20. South Delta Aviation shall maintain the demised premises in a clean and orderly fashion at all times. South Delta Aviation shall be responsible for the upkeep and mowing of the leased property. 21. South Delta Aviation 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 Aviation 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: C7ITY OF FAYETTEVILLE Airport Administration Office 4500 S. School Avenue, Suite F Fayetteville, Arkansas 72701 Phone: 718-7642 South Delta Aviation Darryl Riddell 4248 School Ave. Fayetteville, AR 72701 Phone: (479) 935-4891 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. A SOUTH DELTA AVIAT�IO�N: By: Title CITY AT By: rel Kara Paxton, City ������;• GST Y p" •.sG'% ccs• Sn_ FAYETTEVILLE:--= ��_A NSP • "'JilloN►� ��`�� I nr, uwa Nk 4 XaaX' L-4-� . Q-fl h 4248 S School Ave -_♦ s ei 9