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HomeMy WebLinkAbout230-20 RESOLUTION113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 230-20 File Number: 2020-0707 CREAMER PILOT SERVICES, LLC: A RESOLUTION TO APPROVE A THREE YEAR LEASE AGREEMENT WITH CREAMER PILOT SERVICES, LLC FOR OFFICE SPACE IN THE AIRPORT TERMINAL BUILDING AND CORPORATE HANGER SPACE AT 4500 SOUTH SCHOOL AVENUE FOR RENT IN THE AMOUNT OF $3,000.00 PER MONTH THROUGH DECEMBER 2021, $4,000.00 PER MONTH FOR JANUARY THROUGH DECEMBER 2022, AND $5,000.00 PER MONTH FROM JANUARY 2023 THROUGH THE END OF THE LEASE TERM 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 Creamer Pilot Services, LLC, a copy of which is attached to this Resolution and made a part hereof, for office space in the Airport Terminal Building and corporate hanger space for rent in the amount of $3,000.00 per month through December 2021, increasing to $4,000.00 per month for January through December 2022, and increasing to $5,000.00 per month from January 2023 through the end of the lease tern. PASSED and APPROVED on 9/15/2020 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Text File File Number: 2020-0707 Agenda Date: 9/15/2020 Version: 1 Status: Passed In Control: City Council Meeting File Type: Resolution Agenda Number: A 7 CREAMER PILOT SERVICES, LLC: A RESOLUTION TO APPROVE A THREE YEAR LEASE AGREEMENT WITH CREAMER PILOT SERVICES, LLC FOR OFFICE SPACE IN THE AIRPORT TERMINAL BUILDING AND CORPORATE HANGER SPACE AT 4500 SOUTH SCHOOL AVENUE FOR RENT IN THE AMOUNT OF $3,000.00 PER MONTH THROUGH DECEMBER 2021, $4,000.00 PER MONTH FOR JANUARY THROUGH DECEMBER 2022, AND $5,000.00 PER MONTH FROM JANUARY 2023 THROUGH THE END OF THE LEASE TERM 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 Creamer Pilot Services, LLC, a copy of which is attached to this Resolution and made a part hereof, for office space in the Airport Terminal Building and corporate hanger space for rent in the amount of $3,000.00 per month through December 2021, increasing to $4,000.00 per month for January through December 2022, and increasing to $5,000.00 per month from January 2023 through the end of the lease term. City of Fayetteville, Arkansas Page 1 Printed on 911612020 City of Fayetteville Staff Review Form 2020-0707 Legistar File ID 9/15/2020 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item Summer Fallen 8/17/2020 AIRPORT SERVICES (760) Submitted By Submitted Date Division / Department Action Recommendation: Airport -Staff recommends approval and signature of the Mayor on a lease agreement between the City of Fayetteville and Creamer Pilot Services, LLC for office space in the terminal building and corporate hangar space. 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 V20180321 Purchase Order Number: Previous Ordinance or Resolution # Change Order Number: Original Contract Number: Comments: Approval Date: CITY OF FAYETTEVILLE ARKANSAS MEETING OF SEPTEMBER 15, 2020 TO: Mayor Lioneld Jordan and City Council THRU: Susan Norton, Chief of Staff FROM: Summer Fallen, Airport Services Manager DATE: August 17, 2020 SUBJECT: Creamer Pilot Services, LLC lease CITY COUNCIL MEMO RECOMMENDATION: Staff recommends approval and signature of the Mayor on a lease agreement between the City of Fayetteville and Creamer Pilot Services, LLC for office space in the terminal building and corporate hangar space. BACKGROUND: Creamer Pilot Services, LLC operates a Part 135 charter service offering private air charter and aircraft management. Creamer Pilot Services, LLC operates multiple jets from Drake and employs 10+ employees. DISCUSSION: Creamer Pilot Services, LLC would like to continue to lease the corporate hangar space and office space for their Part 135 charter service. BUDGET/STAFF IMPACT: This lease will provide $36,000 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 Ir , 2020, by and between the City of Fayetteville, Arkansas, hereinafter called "City", and Creamer Pilot Services, LLC, 4500 S School Ave Ste. M, Fayetteville, AR 72701, 479-841-4262, hereinafter called "Creamer Pilot Services, LLC." 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 an aircraft hangar and office space at the Airport; and WHEREAS, Creamer Pilot Services, LLC desires to lease said corporate aircraft hangar and office space, NOW, THEREFORE, the parties, in consideration of the mutual covenants contained herein, hereby agree as follows: 1. City leases to Creamer Pilot Services, LLC , and Creamer Pilot Services, LLC leases from City, approximately 18,750 sq. ft.. of corporate hangar space and 2260 sq. ft. of office space in the Terminal Building located at 4500 S. School Ave, Fayetteville, Arkansas, as reflected on "Exhibit A" attached hereto and made a part hereof. 2. Creamer Pilot Services, 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. Creamer Pilot Services, 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 Creamer Pilot Services, LLC, its employees, customers, passengers, guests, and other invitees. Such rights shall also extend to persons or organizations supplying materials or furnishing services to Creamer Pilot Services, LLC. 4. Term: Subject to earlier termination as hereinafter provided, the initial term of t is agreement shall be for THREE YRS 3) y ar(s) commencing on the/`! day of 2020, and ending on the `Aday of 2023. This Lease Agreement may be terminated by either party with a sixty (60) day written notice 5. Rent: Creamer Pilot Services, LLC agrees to pay the City for the use of the premises, facilities, rights, and privileges granted hereunder the sum of: THREE THOUSAND DOLLARS AND NO CENTS, ($3,000.00) per month through December of 2021, FOUR THOUSAND DOLLARS AND NO CENTS, ($4,000.00) per month, January 2022 through December 2022, and FIVE THOUSAND DOLLARS AND NO CENTS, ($5,000.00) per month until expiration. 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 St 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 Creamer Pilot Services, LLC. Creamer Pilot Services, 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. Creamer Pilot Services, 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: Creamer Pilot Services, 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 Creamer Pilot Services, 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 Creamer Pilot Services, LLC, or Creamer Pilot Services, LLC agents or invites, upon notice from Creamer Pilot Services, 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. Creamer Pilot Services, LLC shall not make any alterations to the controls of the hangar doors. 2 10. Creamer Pilot Services, 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 time to time by the Federal Aviation Administration with respect to the operation of Creamer Pilot Services, LLC 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. Creamer Pilot Services, LLC agrees that it shall use the premises for the implementation and conducting of an aeronautical business activity. Creamer Pilot Services, 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. Creamer Pilot Services, 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: Creamer Pilot Services, 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 Creamer Pilot Services, LLC is responsible or legally liable, Creamer Pilot Services, 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 Creamer Pilot Services, LLC, Creamer Pilot Services, 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 Creamer Pilot Services, 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. Creamer Pilot Services, 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, Creamer Pilot Services, 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. Creamer Pilot Services, 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 Creamer Pilot Services, LLC use or occupancy of the lease premises; provided, however, that Creamer Pilot Services, 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 parry 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. Creamer Pilot Services, LLC 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. Creamer Pilot Services, 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 4 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 Creamer Pilot Services, LLC' creditors or otherwise by operation of law shall not be effective to transfer or assign Creamer Pilot Services, LLC' interest under this Agreement unless the Airport shall have first consented thereto in writing. Neither Creamer Pilot Services, LLC' interest in this Agreement, not any estate created hereby in Creamer Pilot Services, 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 Creamer Pilot Services, LLC are transferred, or if any partnership interests of Creamer Pilot Services, 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 Creamer Pilot Services, LLC, same shall be deemed an assignment for the purposes of this Section 17 and shall require the Airport's prior consent, and Creamer Pilot Services, LLC shall notify the Airport of any such change or proposed change. 18. On the expiration or other termination of this lease Creamer Pilot Services, LLC right to use the demised premises shall cease, and Creamer Pilot Services, LLC shall vacate the premises without unreasonable delay. All property installed, erected, or placed by Creamer Pilot Services, LLC in, on. or about the premises leased hereunder shall be deemed to be personal property and shall remain the property of Creamer Pilot Services, LLC. Creamer Pilot Services, 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 Creamer Pilot Services, LLC' obligation to repair all damage, if any, resulting from such removal. Any and all property not reiiioved by Creamer Pilot Services, 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 Creamer Pilot Services, LLC at any reasonable time for any purpose necessary or incidental to the performance of its obligations or Creamer Pilot Services, LLC' obligations hereunder. 20. Creamer Pilot Services, LLC shall maintain the demised premises in a clean and orderly fashion at all times. Creamer Pilot Services, LLC shall be responsible for the upkeep and mowing of the leased property. 21. Creamer Pilot Services, 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. Creamer Pilot Services, 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 Ave., Suite F Fayetteville, AR 72701 (479)718-7642 Creamer Pilot Services, LLC 4500 S School Ave Ste. M Fayetteville, AR 72701 (479) 841-4262 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. Lance C CITY OFF I By: io ld J,, i ATTEST By: Kara ax1 , Creamer Pilot Services, LLC 0 City Clerk and i � N f N, � r a. Corporate Hangar 3 y 4500 S School Offices