HomeMy WebLinkAbout138-20 RESOLUTION113 West Mountain Street
Fayetteville, AR 72701
(479)575-8323
Resolution: 138-20
File Number: 2020-0369
AURORA AVIATION, LC, DBA ELITE AIRCRAFT SERVICES:
A RESOLUTION TO APPROVE A ONE YEAR LEASE AGREEMENT WITH AURORA AVIATION,
LC, DBA ELITE AIRCRAFT SERVICES FOR OFFICE SPACE IN THE AIRPORT TERMINAL
BUILDING AT 4500 SOUTH SCHOOL AVENUE SUITE E FOR RENT IN THE AMOUNT OF
$300.00 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 one year lease
agreement with Aurora Aviation, LC, DBA Elite Aircraft Services, a copy of which is attached to this
Resolution and made a part hereof, for office space in the Airport Terminal Building for rent in the
amount of $300.00 per month.
PASSED and APPROVED on 5/19/2020
Attest:
F
CA
YETTEVILLE
Kara Paxton, City Clerk Treasu& I.
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TON �C 0
441111
Page 1 Printed on 5119120
!� City of Fayetteville, Arkansas 113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
I
Text File
File Number: 2020-0369
Agenda Date: 5/19/2020 Version: 1 Status: Agenda Ready
In Control: City Council Meeting File Type: Resolution
Agenda Number: A. 3
AURORA AVIATION, LC, DBA ELITE AIRCRAFT SERVICES:
A RESOLUTION TO APPROVE A ONE YEAR LEASE AGREEMENT WITH AURORA AVIATION,
LC, DBA ELITE AIRCRAFT SERVICES FOR OFFICE SPACE IN THE AIRPORT TERMINAL
BUILDING AT 4500 SOUTH SCHOOL AVENUE SUITE E FOR RENT IN THE AMOUNT OF
$300.00 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 one year lease
agreement with Aurora Aviation, LC, DBA Elite Aircraft Services, a copy of which is attached to this
Resolution and made a part hereof, for office space in the Airport Terminal Building for rent in the amount of
$300.00 per month.
City of Fayetteville, Arkansas Page 1 Printed on 511912020
City of Fayetteville Staff Review Form
2020-0369
Legistar File ID
5/19/2020
City Council Meeting Date - Agenda Item Only
N/A for Non -Agenda Item
Summer Fallen 4/29/2020 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 terminal lease agreement between the I
City of Fayetteville and Aurora Aviation, LC DBA Elite Aircraft Services.
Account Number
Project Number
Budgeted Item? NA
Budget Impact:
Current Budget
Funds Obligated
Current Balance
Fund
Project Title
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 MAY 19, 2020
TO: Mayor Lioneld Jordan and City Council
THRU: Susan Norton, Chief of Staff
FROM: Summer Fallen, Airport Services Manager
DATE: April 29, 2020
CITY COUNCIL MEMO
SUBJECT: Aurora Aviation LC, DBA Elite Aircraft Services Terminal lease
RECOMMENDATION:
Staff requests a resolution to approve and allow the Mayor to sign a terminal lease agreement
between the City of Fayetteville and Aurora Aviation LC, DBA Elite Aircraft Services.
BACKGROUND:
The terminal office space is at 4500 S School Ave Ste. E, Fayetteville, AR 72701. It is currently
unoccupied.
DISCUSSION:
Aurora Aviation LC, DBA Elite Aircraft Services would like to lease Suite E located inside the
terminal to conduct business as a flight school.
BUDGET/STAFF IMPACT:
This lease will provide $3,600 in revenue annually to the airport.
Attachments:
Staff Review Form
City Council Memo
Terminal Lease Agreement
Mailing Address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701
LEASE AGREEMENT
This LEASE AGREEMENT made this 19th day of May , 2020, by and
between the City of Fayetteville, Arkansas, hereinafter called "City", and Aurora Aviation LC,
dba Elite Aircraft Services.
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 office space at the Airport; and
WHEREAS, Aurora Aviation LC, dba Elite Aircraft Services 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 Aurora Aviation LC, dba Elite Aircraft Services, and Aurora Aviation LC, dba
Elite Aircraft Services leases from City, approximately 362 sq. ft. of office space in the Terminal
Building located at 4500 S. School Ave, Ste. E, Fayetteville Arkansas.
2. Aurora Aviation LC, dba Elite Aircraft Services 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. Aurora Aviation LC, dba Elite Aircraft Services 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 Aurora
Aviation LC, dba Elite Aircraft Services , its employees, customers, passengers, guests, and
other invitees. Such rights shall also extend to persons or organizations supplying materials or
furnishing services to Aurora Aviation LC, dba Elite Aircraft Services.
4. Term: Subject to earlier termination as hereinafter provided, the initial term of this agreement
shall be for one year (1) year(s) commencing on the day of Max, 2020, and ending on
the day of April , 2021.
This Lease Agreement may be terminated by either party with a sixty (30) day written notice
5. Rent: Aurora Aviation LC, dba Elite Aircraft Services agrees to pay the City for the use of
the premises, facilities, rights, and privileges granted hereunder the sum of: THREE HUNDRED
DOLLARS, ($300.00) per month.
The initial lease payment is due and payable 90 days from the execution of this Lease Agreement,
and at half of the agreed upon rate monthly for the following 90 days then 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 Aurora Aviation LC, dba Elite Aircraft Services. Aurora Aviation
LC, dba Elite Aircraft Services 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. Aurora Aviation LC, dba Elite Aircraft Services shall provide for and supply at its expense
all janitor service with respect to the demised premises, and shall pay for all utilities additional to
those offered to the building in its entirety, including additional phone or internet services.
8. Improvements: Aurora Aviation LC, dba Elite Aircraft Services 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 Aurora
Aviation LC, dba Elite Aircraft Services 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 Aurora Aviation LC, dba Elite Aircraft
Services , or Aurora Aviation LC, dba Elite Aircraft Services `s agents or invites, upon notice
from Aurora Aviation LC, dba Elite Aircraft Services, 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.
10. Aurora Aviation LC, dba Elite Aircraft Services 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
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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 Aurora Aviation LC, dba Elite Aircraft Services' 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. Aurora Aviation LC, dba Elite Aircraft Services agrees that it shall use the premises for the
implementation and conducting of an aeronautical business activity. Aurora Aviation LC, dba
Elite Aircraft Services agrees that it shall use the premises only for the storage of aeronautic
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. Aurora Aviation LC, dba Elite Aircraft Services 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: Aurora Aviation LC, dba Elite Aircraft Services 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 Aurora Aviation LC, dba Elite Aircraft
Services is responsible or legally liable, Aurora Aviation LC, dba Elite Aircraft Services 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 attorneys 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 Aurora
Aviation LC, dba Elite Aircraft Services, Aurora Aviation LC, dba Elite Aircraft Services
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. Aurora Aviation LC, dba Elite Aircraft Services 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, Aurora Aviation LC, dba Elite Aircraft
Services 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
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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.
14. Aurora Aviation LC, dba Elite Aircraft Services 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 Aurora
Aviation LC, dba Elite Aircraft Services use or occupancy of the lease premises; provided,
however, that Aurora Aviation LC, dba Elite Aircraft Services 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.
15. Aurora Aviation LC, dba Elite Aircraft Services 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.
16. Assigning, Subletting and Encumbering. Aurora Aviation LC, dba Elite Aircraft Services
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 Aurora Aviation LC, dba Elite Aircraft Services' creditors or otherwise by operation
of law shall not be effective to transfer or assign Aurora Aviation LC, dba Elite Aircraft
Services 's interest under this Agreement unless the Airport shall have first consented thereto in
writing. Neither Aurora Aviation LC, dba Elite Aircraft Services' interest in this Agreement,
not any estate created hereby in Aurora Aviation LC, dba Elite Aircraft Services 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 Aurora Aviation LC, dba Elite Aircraft Services are
transferred, or if any partnership interests of Aurora Aviation LC, dba Elite Aircraft Services
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Agreement, not any estate created hereby in Aurora Aviation LC dba Elite Aircraft Services
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 Aurora Aviation LC, dba Elite
Aircraft Rerviees are transferred, or it' any partnership interests of Aurora Aviation LC dba
Elite Aircraft Servicey 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 Aurora Aviation LC dba Elite Aircraft Services, same shall be
deemed an assignment for
the purposes of this Section 17 and shall require the Airport's prior consent. and Aurora
Aviation LC, dba Elite Aircraft Services shall notify the Airport of any such change or
proposed chan,,e.
17. On the expiration or other termination of this lease Aurora Aviation LC, dba Elite
Aircraft Services' right to use the demised premises shall cease. and Aurora Aviation LC, dba
Elite Aircraft Services shall vacate the premises without unreasonable delay. All property
installed, erected. or placed by Aurora Aviation LC, dba Elite Aircraft Services in, on, or
about the premises leased Aurora Aviation LC. dba Elite Aircraft Services shall have the right
at any time during the term of this agreement., or arty 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 Aurora Aviation LC.
dba )Mite Aircraft Services' obligation to repair all damage. if any, resulting from such
removal. Any and all property not removed by Aurora Aviation LC dba Elie Aircraft
S ice's.•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.
18. City may enter the premises leased to Aurora Aviation I dba Elite Aircraft SenjccE at
any reasonable time for any purpose necessary or incidental to the performance of its obligations
or Aurora Aviation LC, dba Elite Aircraft Smices' obligations hereunder.
19. Aurora Aviation LC dba Elite Aircraft Services shall maintain the demised premises in a
clean and orderly fashion at all times.
20 Aurora Aviation LC, d� lite Aircraft Services agrees that habitation of the hangar
building or offices as a residence is prohibited.
22. Arty 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 AVIATION
Airport Administration Office
4500 S. School Avenue, Suite F
Fayetteville, Arkansas 72701
Phone: (479) 718 -7642
AURORA AVIATION LC:, DRA
ELITE AIRCRAFT SERVICES
110 Box 506
Aurora. MO 65605
Phone: (417) 236-4118
24. This agreement shall be construed under the laws of the State of Arkansas.
25. All die covenants, conditions. and Provisions under this agreement shall extend to and bind
the legal representative;, successors, and assigns (A'the respective Parties hereof.
IN WITNESS WHEREOF, the parties have executed this Lease on the day and year first above
written. A
CITY
,ARK
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By: � FAYETTEVILLE
Kara Paxton. City Clerk
AUROR 'IATI I.C, "F"-PIS A E:LIT All 'RAF I' SERVICES
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