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HomeMy WebLinkAbout73-23 RESOLUTION113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 73-23 File Number: 2023-481 Surfco Restoration & Construction, LLC: A RESOLUTION TO APPROVE A THREE YEAR LEASE AGREEMENT WITH SURFCO RESTORATION AND CONSTRUCTION, LLC FOR OFFICE SPACE IN THE AIRPORT TERMINAL BUILDING AT 4500 SOUTH SCHOOL AVENUE FOR RENT IN THE AMOUNT OF $1,000.00 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 three year lease agreement with Surfco Restoration and Construction, LLC, a copy of which is attached to this Resolution and made a part hereof, for approximately 1807 square feet of office space in the Airport Terminal Building for rent in the amount of $1,000.00 per month. PASSED and APPROVED on March 21, 2023 Page 1 Attest: ltiara Paxxton, City Clerk reasurer ��it►i � irrrrrr► '► R L. • cy q"••�Gr'. w f��►�!r 111'1iE161E� �, 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 73-23 File Number: 2023-481 Surfco Restoration & Construction, LLC: A RESOLUTION TO APPROVE A THREE YEAR LEASE AGREEMENT WITH SURFCO RESTORATION AND CONSTRUCTION, LLC FOR OFFICE SPACE IN THE AIRPORT TERMINAL BUILDING AT 4500 SOUTH SCHOOL AVENUE FOR RENT IN THE AMOUNT OF $1,000.00 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 three year lease agreement with Surfco Restoration and Construction, LLC, a copy of which is attached to this Resolution and made a part hereof, for approximately 1807 square feet of office space in the Airport Terminal Building for rent in the amount of $1,000.00 per month. PASSED and APPROVED on March 21, 2023 Approved: Lioneld Jordan, Mayor Attest: Kara Paxton, City Clerk Treasurer Page 1 CITY OF JUM FAYETTEVILLE ARKANSAS MEETING OF MARCH 21, 2023 TO: Mayor Jordan and City Council THRU: Susan Norton, Chief of Staff Terry Gulley, Asst Public Works Director - Ops Chris Brown, Public Works Director FROM: Jared Rabren, Airport Director DATE: CITY COUNCIL MEMO 2023-481 SUBJECT: Surfco Restoration and Construction, LLC Terminal Lease Agreement RECOMMENDATION: The Aviation Division requests a resolution to approve and allow the Mayor to sign a three year terminal lease agreement between the City of Fayetteville and Surfco Restoration & Construction, LLC. BACKGROUND: The terminal office space is at 4500 S. School Ave, Suite C, Fayetteville, AR 72701. DISCUSSION: Surfco has been leasing this space in the airport terminal for the past three years and would like to continue to do so. They have made several improvements to the space during their lease term. BUDGET/STAFF IMPACT: This lease agreement will provide $12,000 in revenue annually to the airport. ATTACHMENTS: Surfco Lease SRF, Surfco Restoration & Construction LLC 2023 lease -signed Mailing address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 - Legislation Text File #: 2023-481 Surfco Restoration and Construction, LLC Terminal Lease Agreement A RESOLUTION TO APPROVE A THREE YEAR LEASE AGREEMENT WITH SURFCO RESTORATION AND CONSTRUCTION, LLC FOR OFFICE SPACE IN THE AIRPORT TERMINAL BUILDING AT 4500 SOUTH SCHOOL AVENUE FOR RENT IN THE AMOUNT OF $1,000.00 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 three year lease agreement with Surfco Restoration and Construction, LLC, a copy of which is attached to this Resolution and made a part hereof, for approximately 1807 square feet of office space in the Airport Terminal Building for rent in the amount of $1,000.00 per month. Page 1 Jared Rabren Submitted By City of Fayetteville Staff Review Form 2023-481 Item ID 3/21/2023 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 2/24/2023 AIRPORT SERVICES (760) Submitted Date Division / Department Action Recommendation: The Aviation Division requests a resolution to approve and allow the Mayor to sign a three year terminal lease agreement between the City of Fayetteville and Surfco Restoration & Construction, LLC. Budget Impact: Account Number Project Number Budgeted Item? No Total Amended Budget Expenses (Actual+Encum) Available Budget Does item have a direct cost? No Item Cost Is a Budget Adjustment attached? No Budget Adjustment Remaining Budget Purchase Order Number: Change Order Number: Original Contract Number: Comments: Fund Project Title $ V20221130 Previous Ordinance or Resolution # Approval Date: LEASE AGREEMENT y t This LEASE AGREEMENT made this gyp`,1day of /(Aarc1c, , 2023, by and between the City of Fayetteville, Arkansas, hereinafter called "City", and Surfco Restoration and Construction, LLC, 4500 S School Ave Suitc.0 Fayetteville, AR 72701, hereinafter called "Surfco." 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, Surfco 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 Surfco, and Surfco leases from City, approximately 1807 sq. ft. of office space in the Terminal Building located at 4500 S. SchooI Ave Fa etteville Arkansas. 2. Surfco 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. Surfco 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 Surfco, its employees, customers, passengers, guests, and other invitees. Such rights shall also extend to persons or organizations supplying materials or furnishing services to Surfco 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 21st day of March , 2023, and ending on the 20th day of February, 2026. This Lease Agreement may be terminated by either party with a sixty (30) day written notice. 5. Rent: Surfco agrees to pay the City for the use of the premises, facilities, rights, and privileges granted hereunder the sum of: ONE THOUSAND DOLLARS PER MONTH, ($1000.00) 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 1" 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 Surfco. Surfco 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. Surfco 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: Surfco 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 Surfco 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, 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 Surfco, or Surfco. `s agents or invites, upon notice from Surfco, 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. Surfco 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 Surfco's 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. 2 11. Hazardous Substance: Surfco 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 Surfco is responsible or legally liable, Surfco 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 Surfco, Surfco 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. 12. Surfco 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, Surfco 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. 13. Surfco 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 Surfco use or occupancy of the lease premises; provided, however, that Surfco 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. 14. Surfco 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 3 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. 15. Assigning, Subletting and Encumbering. Surfco 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 Surfco's creditors or otherwise by operation of law shall not be effective to transfer or assign Surfco's interest under this Agreement unless the Airport shall have first consented thereto in writing. Neither Surfco's interest in this Agreement, not any estate created hereby in Surfco 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 Surfco are transferred, or if any partnership interests of Surfco 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 Surfco, same shall be deemed an assignment for the purposes of this Section 17 and shall require the Airport's prior consent, and Surfco shall notify the Airport of any such change or proposed change. 16. On the expiration or other termination of this lease Surfco's right to use the demised premises shall cease, and Surfco shall vacate the premises without unreasonable delay. All property installed, erected, or placed by Surfco in, on, or about the premises leased Surfco 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 Surfco's obligation to repair all damage, if any, resulting from such removal. Any and all property not removed by Surfco 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. 17. City may enter the premises leased to Surfco at any reasonable time for any purpose necessary or incidental to the performance of its obligations or Surfco's obligations hereunder. 18. Surfco shall maintain the demised premises in a clean and orderly fashion at all times. 19. Surfco, agrees that habitation of the hangar building or offices as a residence is prohibited. 20. 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: 4 CITY OF FAYETTEVILLE Surfco Restoration & Construction DRAKE FIELD LLC Airport Administration Office Brock Emanuel 4500 S. School Avenue, Suite F 4500 School Ave Ste. C Fayetteville, Arkansas 72701 Fayetteville, Arkansas 72701 Phone: (479) 718 -7642 Phone: (479) 287- 6213 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. ATTES By: Kara Paxton, City Clerk Title 5