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HomeMy WebLinkAbout164-22 RESOLUTIONtlF FAifrr f_ ��'karySF'S 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 164-22 File Number: 2022-0598 ARKANSAS AIR AND MILITARY MUSEUM, INC.: A RESOLUTION TO APPROVE A THREE YEAR LEASE AGREEMENT WITH THE ARKANSAS AIR AND MILITARY MUSEUM, INC. FOR PROPERTY LOCATED AT DRAKE FIELD, WITH OPTIONS TO RENEW FOR ADDITIONAL THREE YEAR TERMS WHEREAS, the Arkansas Air and Military Museum has leased several buildings on Drake Field including the former terminal building and the original white hanger since 1987; and WHEREAS, the Arkansas Air and Military Museum have several displays of memorabilia from the Military, including aircraft, vehicles, and clothing on display for the public; and WHEREAS, in lieu of rent payments the Museum agrees to allow citizens of Fayetteville free admission to the Museum on Veteran's Day and Memorial Day and will work with the Fayetteville Public Schools to provide to all fourth -grade classes free tours and presentations on the history and principles of flight, annually; and WHEREAS, the Museum also agrees to provide interior repair and other maintenance, and to vigorously pursue advertising and promotions on behalf of Fayetteville to attract tourists to our city. NOW, THEREFORE, 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 the attached Lease Agreement and authorizes Mayor Jordan to sign this Lease Agreement with the Arkansas Air and Military Museum, Inc. for the Air Museum Complex at Drake Field so it can continue its successful operation of the Arkansas Air and Military Museum. Page 1 Printed on 7120122 Resolution: 164-22 File Number: 2022-0598 PASSED and APPROVED on 7/19/2022 Attest: 01141111111y �`ti��GLER K 1 rR���/: f-AY .�.. Kara Paxton, City Clerk Treasurer 5 Page 2 Printed on 7120122 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 Text File File Number: 2022-0598 Agenda Date: 7/19/2022 Version: 1 Status: Passed In Control: City Council Meetinq File Type: Resolution Agenda Number: A.8 ARKANSAS AIR AND MILITARY MUSEUM, INC.: A RESOLUTION TO APPROVE A THREE YEAR LEASE AGREEMENT WITH THE ARKANSAS AIR AND MILITARY MUSEUM, INC. FOR PROPERTY LOCATED AT DRAKE FIELD, WITH OPTIONS TO RENEW FOR ADDITIONAL THREE YEAR TERMS WHEREAS, the Arkansas Air and Military Museum has leased several buildings on Drake Field including the former terminal building and the original white hanger since 1987; and WHEREAS, the Arkansas Air and Military Museum have several displays of memorabilia from the Military, including aircraft, vehicles, and clothing on display for the public; and WHEREAS, in lieu of rent payments the Museum agrees to allow citizens of Fayetteville free admission to the Museum on Veteran's Day and Memorial Day and will work with the Fayetteville Public Schools to provide to all fourth -grade classes free tours and presentations on the history and principles of flight, annually; and WHEREAS, the Museum also agrees to provide interior repair and other maintenance, and to vigorously pursue advertising and promotions on behalf of Fayetteville to attract tourists to our city. NOW, THEREFORE, 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 the attached Lease Agreement and authorizes Mayor Jordan to sign this Lease Agreement with the Arkansas Air and Military Museum, Inc. for the Air Museum Complex at Drake Field so it can continue its successful operation of the Arkansas Air and Military Museum. City of Fayetteville, Arkansas Page 1 Printed on 712012022 Jared Rabren Submitted By City of Fayetteville Staff Review Form 2022-0598 Legistar File ID 7/19/2022 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 6/29/2022 AIRPORT SERVICES (760) Submitted Date Division / Department Action Recommendation: Staff recommends approval and signature of the Mayor on a lease agreement between the City of Fayetteville and the Arkansas Air and Military Museum for the facilities they currently occupy. Budget Impact: Account Number Project Number Budgeted Item? No Current Budget Funds Obligated Current Balance Does item have a cost? No Item Cost Budget Adjustment Attached? No Budget Adjustment Remaining Budget Purchase Order Number: Change Order Number: Original Contract Number: Comments: Fund Project Title V20210527 Previous Ordinance or Resolution # Approval Date: CITY OF FAYETTEVILLE ARKANSAS MEETING OF JULY 19, 2022 TO: Mayor and City Council THRU: Susan Norton, Chief of Staff FROM: Jared Rabren, Airport Director DATE: 06/29/22 SUBJECT: Arkansas Air & Military Museum Lease CITY COUNCIL MEMO RECOMMENDATION: Staff recommends approval and signature of the Mayor on a lease agreement between the City of Fayetteville and the Arkansas Air and Military Museum for the facilities they currently occupy. BACKGROUND: The Arkansas Air and Military Museum have held a lease with the City of Fayetteville since 1987 for use of several buildings on Drake Field including the former terminal building and the original white hangar. DISCUSSION: The Arkansas Air and Military Museum have several displays of memorabilia from the Military, including aircraft, vehicles, and clothing on display for the public. The museum is a staple for the community and important part of the Airport's public outreach. BUDGET/STAFF IMPACT: The museum agrees, in lieu of rent payments as compensation to the citizens of Fayetteville for the use of public property on the airport, to allow citizens of Fayetteville free admission to the Museum on Veteran's Day and Memorial Day. The Museum further agrees to work with the Fayetteville Public Schools to provide to all fourth -grade classes free tours and presentations on the history and principles of flight, annually. The Museum will also vigorously pursue advertising and promotions on behalf of the citizens to attract tourist to the community. They will maintain the building and the new facility, and the grounds leased from the Airport. Attachments: Staff Review Form Staff Memo Air and Military Museum Lease Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 LEASE AGREEMENT TNs LEASE AGREEMENT made this � � day of .2022 between the City of Fayetteville, Arkansas, hereinafter called the "City" and the Arkansa r and Military Museum, Inc., at 4290, 4330 and 4360 South School Avenue, Fayetteville, Arkansas 72701, hereafter called the "Museum" or "Museum Complex." WHEREAS, the City is the owner of an airport known as the Fayetteville Executive Airport Drake Field, herein after referred to as the "Airport"; and WHEREAS, the Museum has long leased City -owned real property (referred to also as the "Premises") located at 4290, 4330, and 4360 S. School Avenue for museum operations; and WHEREAS, the current lease agreement expired on April 30, 2022. However, both the Museum and the City wish to agree to this Lease Agreement on many of the same terms of the previous Lease Agreement for an initial new term of three years with options to renew for additional three year terms upon future agreements of the parties. NOW, THEREFORE, the parties, in consideration of the mutual promises and covenants contained hcrein, hereby agree as follows: 1. The City agrees to lease to the Museum, and the Museum agrees to lease from the City, approximately 3.6 acres of land and buildings in the museum complex, including two City built buildings at 4290 and 4360 S. School Avenue and a museum built building at 4330 S. School Avenue; all locations are shown on Exhibit "A", attached hereto and made a part hereof: All buildings are owned by the City, but the Museum has long and will continue during those Lease terms to have legal possessory rights to the Museum Complex. 2. The City agrees that as part of this Lease Agreement to grant to the Museum in common with its other tenants the use of the airport and all of its common facilities, equipment, improvements and services. 3. The Museum shall have at all times the full and free right of ingress to and egress from common airport facilities and the Museum Complex and is empowered to grant such rights to its employees, customers, passengers, guests, and other invitees. Such rights shall also extend to persons or organizations supplying materials or furnishing services to the Museum. 4. The initial term of this Lease Agreement shall be for three (3) years commencing upon the execution of this Lease Agreement by both parties, and ending three years thereafter. At least One -Hundred -and -Twenty (120) days prior to the termination date, the Museum shall give Po!.:.c 115 the City written notice if the Museum desires to extend the Lease. Negotiations between the City and the Museum shall then determine whether a further extension shall be granted. Should a further extension not be granted, all real property improvements on the City of Fayetteville owned property shall remain the property of the City of Fayetteville. Any further three year extensions of the Lease Agreement upon expiration of the previous term shall follow the same procedure. S. In lieu of rent payments as compensation to the citizens of Fayetteville for the use of public property on the airport, the Museum agrees to allow the citizens of Fayetteville free admission to the Museum on Veteran's Day and Memorial Day. The Museum further agrees to work with the public schools to annually provide to all age appropriate classes free tours and presentations on the history and principles of flight. Finally, the Museum agrees to vigorously pursue advertising and promotions on behalf of the citizens to attract tourists to the Museum and community. 6. The City shall endeavor to maintain and keep in good repair the Airport common facilities. The Museum shall, at the tennination, surrender, or forfeiture of this lease, return the Museum Complex in the same or better condition as at the beginning of the lease, normal wear and tear excepted. 7. The Museum shall provide for and supply at its expense all janitorial and basic maintenance services for the Museum Complex and shall pay for all utilities serving the Museum Complex including, but not limited to, gas, electricity, water and sewer, and trash removal/recycling. 8. The Museum shall bear the cost of all improvements or additions made to the interior or exterior of the buildings on the leased premises. No improvements or additions to any part of the leased premises shall be made by the Museum without the prior written approval of the City, 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 Director and conform to all City Ordinances. 9. 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 Museum buildings 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 the Museum or the Museum's agents or invitees, upon notice from the Museum, the City will promptly cause repairs to be made and restore the defective portions to good condition. If the demised premises are completely destroyed or damaged to such an extent that repairs will likely exceed One Hundred Thousand Dollars ($100,000.00) then such repairs must be approved by the Fayetteville City Council before more than $100,000.00 can be spent by the City for such repairs or rehabilitation. The City Council may, at its option, cancel this agreement without compensation to the Museum rather pay to reconstruct or repair any building. The Museum shall immediately notify the City of any damages which may prompt repairs on behalf of the City. Such repairs could include but are not, limited to leaks (plumbing, roofing, 1-IVAC, etc), storm damages, system outages, fire, electrical or mechanical failure, etc. 10. The Museum shall at its expense maintain the Museum's exterior doors and windows in a reasonable state of repair and shall make such repairs as may be required to keep and maintain the grounds and structure in a good and tenantable condition. The Museum shall also keep the interior of the building including, but not limited to, interior walls, floors, doors, wiring, plumbing, and window and door glass in good repair at its expense. The City of Fayetteville shall be responsible for repairs to the roof, heating and air units, and major repairs of electrical and plumbing systems subject to the limitations in paragraph 9. 11. The Museum agrees to observe and obey the City's Ordinances and Regulations with respect to use of the Museum Complex and Airport. The Museum further agrees to obey all relevant Federal Aviation Administration regulations which take precedence over any City ordinance. 12. "The Minimum Standards for Fayetteville Executive Airport Drake Field" herein referred to as Airport Minimum Standards at Fayetteville Executive Airport are made part of this lease by reference as if included word for word. By signing this Lease Agreement, the Museum acknowledges that is has received a copy of the Airport's Minimum Standards and agrees to abide by those standards and all applicable FAA regulations. 13. The Museum agrees not to store any flammable material other than a limited supply of oils and agents necessary for current aircraft operations on the premises or in any way endanger or violate the provisions of the City's property insurance policy or the requirement of same. Such violations shall constitute a material breach of this agreement. 14. The Museum agrees to procure and maintain in force during the term and any extended term of this agreement insurance as required by FAA' regulations and the Airport's Minimum Standards for its personal property. The City shall procure and maintain in force insurance as required by FAA regulation for building fire insurance. The Museum shall procure and maintain in force during the term and any extended term of this agreement commercial general liability insurance, if required by FAA regulations and at amounts required by such FAA regulations. Hosted events in which alcoholic beverages are served shall only be allowed with liquor liability insurance either procured by the Museum or its third party. 15. The Museum 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, nor 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. The Museum is specifically authorized to rent the premises for parties, receptions, meetings, etc. to raise money for the Museum's operations. Any consent by the City 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 the Museum's creditors or otherwise by operation of law shall not be effective to transfer or assign the Museum's interest under this Agreement unless the Airport shall have first consented thereto Page 315 in writing. Neither the Museum's interest in this Lease Agreement, nor any estate created hereby in the Museum, 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 the Museum are transferred, or if any partnership interests of the Museum 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 the Museum, same shall be deemed an assignment for the purposes of this section and shall require the City's prior consent. The Museum shall notify the City of any such change or proposed change as soon as possible. 16. On the expiration or other termination of this lease agreement, the Museum's right to use the demised premises (Museum Complex) shall cease, and Museum shall vacate the premises without unreasonable delay. 17. The Museum 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 one hundred and eighty (180) days after the expiration, or other termination of this agreement, to remove any or all of such personal property, subject, however, to the Museum's obligation to repair all damage, if any, resulting from such removal. Any and all personal property not removed by the Museum prior to the expiration of the aforesaid one hundred and eight day period may be removed by the City and placed in storage with the Museum or owner responsible for all storage costs and the costs to remove the property from the Museum Complex. 18. The City may enter the premises leased to the Museum at any reasonable time for any purpose necessary or incidental to the performance of its obligations or the Museum's obligations hereunder as well in any emergency situation to prevent harm or protect the Museum Complex, its contents, or other parts of the Airport. 19. The Museum shall maintain the Museum Complex in a clean and orderly fashion at all times. The Museum shall be responsible for the upkeep and mowing of the leased property. 20. The Museum shall not start or operate aircraft engines within any aircraft hangar and shall not allow such operations by any other person. 21. 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' OI' l AY1;'I"IT;VII.I11:, ARKANSAS- Office of the Fayetteville Mayor 113 West Mountain Fayetteville, AR 72701 479-575-8330 .kRKAN-SAS AIR AND MILITARY MUSEUM, INC.: Arkansas Air and Military Museum, Inc. 4290 S. School Avenue Fayetteville, Arkansas 72701 PH: 479-521-4947 22. This agreement shall be construed under the laws of the State of Arkansas, with venue in Washington County, Arkansas. 23. 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. Date: ARKANSAS AIR AND MILITARY MUSEUM, INC. By: L--A- 1 L�. J- • -\---- Name. Kristi`Younkin Title: AAMM Board President WITNESS: ' By:... �ac,c Pr�ru Title: Date: / / r CITY OF F LO ATTEST: By: [ ?'ar�aPaxton-, City Clerk -Treasurer 14 c�.FAYETTEVIl.Lf %'urO y