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