HomeMy WebLinkAbout30-21 RESOLUTION113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Resolution: 30-21
File Number: 2020-1163
CREAMER PILOT SERVICES, LLC:
A RESOLUTION TO APPROVE AN ASSIGNMENT, ASSUMPTION, AND CONSENT
AGREEMENT TO TRANSFER THE LEASE AGREEMENT FOR OFFICE SPACE IN THE
AIRPORT TERMINAL BUILDING AT 4500 SOUTH SCHOOL AVENUE TO CREAMER
PILOT SERVICES, LLC, AND TO RELEASE M.K. ROCKWELL INVESTMENTS, LLC
FROM THE LEASE AGREEMENT
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 Assignment, Assumption, and Consent Agreement which will transfer the lease agreement
for 470 square feet of office space in the airport terminal building at 4500 South School Avenue to
Creamer Pilot Services, LLC and which will release M.K. Rockwell Investments, LLC from the
existing lease agreement.
PASSED and APPROVED on 1/19/2021
Page 1
Attest:
Kara Paxton, City Clerk
FAYETTEVILLE;_
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City of Fayetteville, Arkansas 113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Text File
File Number: 2020-1163
Agenda Date: 1/19/2021 Version: 1 Status: Passed
In Control: City Council Meetinq File Type: Resolution
Agenda Number: A.2
CREAMER PILOT SERVICES, LLC:
A RESOLUTION TO APPROVE AN ASSIGNMENT, ASSUMPTION, AND CONSENT
AGREEMENT TO TRANSFER THE LEASE AGREEMENT FOR OFFICE SPACE IN THE AIRPORT
TERMINAL BUILDING AT 4500 SOUTH SCHOOL AVENUE TO CREAMER PILOT SERVICES,
LLC, AND TO RELEASE M.K. ROCKWELL INVESTMENTS, LLC FROM THE LEASE
AGREEMENT
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 Assignment, Assumption, and Consent Agreement which will transfer the lease agreement for 470 square
feet of office space in the airport terminal building at 4500 South School Avenue to Creamer Pilot Services,
LLC and which will release M.K. Rockwell Investments, LLC from the existing lease agreement.
City of Fayetteville, Arkansas Page 1 Printed on 112012021
Summer Fallen
Submitted By
City of Fayetteville Staff Review Form
2020-1163
Legistar File ID
1/19/2021
City Council Meeting Date - Agenda Item Only
N/A for Non -Agenda Item
12/30/2020
Submitted Date
Action Recommendation:
AIRPORT SERVICES (760)
Division / Department
Airport -Staff requests a resolution to approve and allow the Mayor to sign a lease assignment between the City of
Fayetteville and Creamer Pilot Services, LLC.
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 # 46 20
Change Order Number:
Original Contract Number:
Comments:
Approval Date:
CITY OF
FAYETTEVILLE
ARKANSAS
MEETING OF JANUARY 19, 2021
TO: Mayor Lioneld Jordan and City Council
THRU: Susan Norton, Chief of Staff
FROM: Summer Fallen, Airport Services Manager
DATE: December 30, 2020
CITY COUNCIL MEMO
SUBJECT: Creamer Pilot Services, LLC and M.K. Rockwell Investments, LLC
Terminal lease assignment
RECOMMENDATION:
Staff requests a resolution to approve and allow the Mayor to sign terminal lease assignment
between the City of Fayetteville and Creamer Pilot Services, LLC. This assignment releases
M.K. Rockwell Investments, LLC from the current lease.
BACKGROUND:
The 470 square foot terminal office space is located at the south end of the building at 4500 S
School Ave, Fayetteville, AR 72701. It is currently occupied by Creamer Pilot Services, LLC.
DISCUSSION:
Creamer Pilot Services, LLC and M.K. Rockwell Investments, LLC currently lease the offices at
the South end of the terminal building. M.K. Rockwell Investments, LLC would like to remove
their company name from this lease.
BUDGET/STAFF IMPACT:
None.
Attachments:
Staff Review Form
City Council Memo
Assignment of lease
Resolution 46-20
Mailing Address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701
Assignment, Assumption, and Consent Agreement
WHEREAS, the Fayetteville City Council approved Resolution 46-20 authorizing a
three year lease agreement with Jett Aircraft, LLC and M.K. Rockwell Investments, LLC for 470
square feet of office space in the Drake Field Terminal Building at 4500 South School Avenue
(the "Lease") and the Lease Agreement was signed by Mayor Lioneld Jordan on behalf of the
City of Fayetteville on February 4, 2020; and
WHEREAS, M.K. Rockwell Investments, LLC has requested to assign it obligations
under the Lease to Jett Aircraft, LLC, which has agreed to accept all obligations under the Lease;
and
WHEREAS, the City of Fayetteville is willing to consent to such an assignment subject
to the terms and conditions below:
NOW, THEREFORE, The City of Fayetteville ("City"), M.K. Rockwell Investments,
LLC and Jett Aircraft, LLC ("Assignors', and Creamer Pilot Services, LLC ("Assignee")
hereby agree as follows:
Assignors hereby assign, transfer, grant, and convey unto Assignee all of
Assignors' right, title, and interest in and to the Lease.
Assignee hereby accepts the foregoing assignment and assumes and agrees to
timely pay all rent or fees due to the City and perform all covenants and agreements as set forth
in the Lease becoming due or to be performed on or after the effective date of this Agreement;
provided, however, that Assignors shall remain bound to the City on the terms and conditions of
the Lease notwithstanding this Agreement.
3. Assignee hereby agrees to hold Assignors harmless from and indemnify them
against any and all liability, loss, or damage, including attorney's fees, that Assignors may incur
EXHIBIT
Page I of 3 3
as a result of the failure of Assignee to comply with the obligations assumed hereunder for
actions of Jett that occur after the effective date of this Agreement. Assignee's hold harmless and
indemnification of Assignors does not extend to liability or obligations of Assignors under the
Lease Agreement for the period prior to the effective date of this Agreement and for which both
Assignors and Assignee may have joint and several liability.
4. City hereby consents to the foregoing assignment under the terms of the Lease
and this Agreement on the condition that its consent shall not be construed as a waiver or
relinquishment of any right or covenant in the Lease requiring City's consent to any future
assignment or subletting by Assignee.
5. This Agreement is made with the understanding that all other terms and
conditions of the Lease not expressly modified herein shall remain in full force and effect.
Assignors acknowledge and agree that, notwithstanding the assignment of the
Lease, it remains liable for the performance of all of the obligations under the Lease and the City
shall be permitted to enforce the Lease against Assignee or Assignors, or all of them.
IN WITNESS WHEREOF, the parties have executed this Assignment, Assumption, and
Consent Agreement which shall be effective on the date of exercution by the City of Fayetteville.
CITY OF F
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Page 2of3 '''��V�10N �0��`;
ASSIGNORS:
JETT AIRCRAFT, LLC
0
Lance Creamer, Authorized Agent
Date:
M.K. ROCKWELL INVESTMENTS, LLC
By:
Mark Rockwell, Member
Date: to /1(0 I Z, v Z O
ASSIGNEE:
CREAMER PILOT SERVICES, LLC
By:
Lance Creamer, Managing Member
Date:
Page 3 of 3
ASSIGNORS:
JETT AIRCRAFT, LLC
By:p If 1�.�'Ao .1 P.
Lance Creamer, u orized Agent
Date: 10 / 6 -20
M.K. ROCKWELL INVESTMENTS, LLC
By:
Mark Rockwell, Member
Date:
ASSIGNEE:
CREAMER PILOT SERVICES, LLC
By:
Lc�eCrealmer, Managing Member
Date: / 0 — 1 6 — ZO
Page 3 of 3
LEASE AGREEMENT
"I +�
This LEASE AGREEMENT made this -- day of �iA Q�i, 2020, by and
between the City of Fayetteville, Arkansas, hereinafter called "City", and Creakh►er Pilot Services,
LLC and M.K. Rockwell Investments, LLC, 275 Harvey Dowell Road, Fayetteville, AR 72701,
hereinafter called "Creamer Pilot Services and M.K. Rockwell Investments"
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, Creamer Pilot Services and M.K. Rockwell Investments 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 Creamer Pilot Services and M.K. Rockwell Investments, and Creamer Pilot
Services and M.K. Rockwell Investments leases from City, approximately 470. 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 and M.K. Rockwell Investments 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 and M.K. Rockwell Investments 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 and M.K. Rockwell Investments, 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 and M.K. Rockwell Investments
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 1 st day of February 2020, and
ending on the 31 st day of January, 2023.
This Lease Agreement may be terminated by either party with a sixty (30) day written notice
5. Rent: Creamer Pilot Services and M.K. Rockwell Investments agrees to pay the City for
the use of the premises, facilities, rights, and privileges granted hereunder the sum of: FOUR -
HUNDRED ELEVEN DOLLARS AND SIXTY CENTS PER MONTH ($411 60) 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.
Rent will be increased every two years using the CPI rate, plus one percent. A new lease will be
negotiated upon expiration of this lease.
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 and M.K. Rockwell Investments. Creamer
Pilot Services and M.K. Rockwell Investments 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 and M.K. Rockwell Investments 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 and M.K. Rockwell Investments 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 and M.K. Rockwell Investments 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 and M.K. Rockwell
Investments, or Creamer Pilot Services and M.K. Rockwell Investments `s agents or invites,
upon notice from Creamer Pilot Services and M.K. Rockwell Investments, 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. Creamer Pilot Services and M.K. Rockwell Investments 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 and M.K. Rockwell Investments's aircraft
at the Airport.
"The Minimum Standards far 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 and M.K. Rockwell Investments agrees that it shall use the premises
for the implementation and conducting of an aeronautical business activity. Creamer Pilot
Services and M.K. Rockwell Investments 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. Creamer Pilot Services and M.K. Rockwell Investments
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 and M.K. Rockwell Investments 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 and
M.K. Rockwell Investments is responsible or legally liable, Creamer Pilot Services and M.K.
Rockwell Investments 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 and M.K. Rockwell Investments, Creamer Pilot
Services and M.K. Rockwell Investments 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. Creamer Pilot Services and M.K. Rockwell Investments 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 and M.K. Rockwell
Investments 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.
14. Creamer Pilot Services and M.K. Rockwell Investments 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 and M.K. Rockwell Investments use or occupancy of the lease
premises; provided, however, that Creamer Pilot Services and M.K. Rockwell Investments
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. Creamer Pilot Services and M.K. Rockwell Investments 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. Creamer Pilot Services and M.K. Rockwell
Investments 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
4
benefit of Creamer Pilot Services and M.K. Rockwell Investments's creditors or otherwise by
operation of law shall not be effective to transfer or assign Creamer Pilot Services and M.K.
Rockwell Investments's interest under this Agreement unless the Airport shall have first
consented thereto in writing. Neither Creamer Pilot Services and M.K. Rockwell Investments's
interest in this Agreement, not any estate created hereby in Creamer Pilot Services and M.K.
Rockwell Investments 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 and M.K. Rockwell Investments are transferred, or if any partnership interests of
Creamer Pilot Services and M.K. Rockwell Investments 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 and M.K. Rockwell
Investments, 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 and M.K. Rockwell Investments
shall notify the Airport of any such change or proposed change.
17. On the expiration or other termination of this lease Creamer Pilot Services and M.K.
Rockwell Investments's right to use the demised premises shall cease, and Creamer Pilot
Services and M.K. Rockwell Investments shall vacate the premises without unreasonable delay.
All property installed, erected, or placed by Creamer Pilot Services and M.K. Rockwell
Investments in, on, or about the premises leased Creamer Pilot Services and M.K. Rockwell
Investments 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 and M.K. Rockwell Investments's obligation to repair all damage, if any, resulting
from such removal. Any and all property not removed by Creamer Pilot Services and M.K.
Rockwell Investments 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 Creamer Pilot Services and M.K. Rockwell
Investments at any reasonable time for any purpose necessary or incidental to the performance of
its obligations or Creamer Pilot Services and M.K. Rockwell Investments's obligations
hereunder.
19. Creamer Pilot Services and M.K. Rockwell Investments shall maintain the demised
premises in a clean and orderly fashion at all times.
20. Creamer Pilot Services and M.K. Rockwell Investments agrees that habitation of the
hangar building or offices as a residence is prohibited.
22. 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 AVIATION
Airport Administration Office
4500 S. School Avenue, Suite F
Fayetteville, Arkansas 72701
Phone: (479) 718 -7642
Creamer Pilot Services and M.K.
Rockwell Investments
275 Harvey Dowell Road
Fayetteville, AR 72701
Phone: (479) 84 I -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.
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Creamer Pilot Services and M.K. Rockwell Investments
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